Internal Revenue Bulletin 2014-1 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

# Internal Revenue bulletin

## HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

## EMPLOYEE PLANS

### Rev. Proc. 2014-4, page 125.

Rulings and information letters; issuance procedures. Revised
procedures are provided for furnishing ruling letters, informa-
tion letters, etc., on matters related to sections of the Code
currently under the jurisdiction of the Office of the Division
Commissioner, Tax Exempt and Government Entities. Rev.
Proc. 2013-4 superseded.

### Rev. Proc. 2014-5, page 169.

Revised procedures are provided for furnishing technical ad-
vice to area managers and appeals office by the Office of the
Division Commissioner, Tax Exempt and Government Entities,
regarding issues in the employee plans area (including actuar-
ial matters) and in the exempt organizations area. Rev. Proc.
2013-5 superseded.

### Rev. Proc. 2014-6, page 198.

Employee plans determination letters. Revised procedures are
provided for issuing determination letters on the qualified sta-
tus of employee plans under sections 401(a), 403(a), 409 and
4975 of the Code. Rev. Proc. 2013-6 superseded. Rev. Proc.
2011-49 modified.

### Rev. Proc. 2014-8, page 242.

User fees for employee plans and exempt organizations. Cur-
rent guidance for complying with the user fee program of the
Service as it pertains to requests for letter rulings, determina-
tion letters, etc., on matters under the jurisdiction of the Office
of the Division Commissioner, Tax Exempt and Government
Entities Division, is provided. Rev. Proc. 2013-8 superseded.

## ADMINISTRATIVE

### Rev. Proc. 2014-1, page 1.

This procedure contains revised procedures for letter rulings
and information letters issued by the Associate Chief Counsel
(Corporate), Associate Chief Counsel (Financial Institutions and
Products), Associate Chief Counsel (Income Tax and Account-
ing), Associate Chief Counsel (International), Associate Chief
Counsel (Passthroughs and Special Industries), Associate Chief
Counsel (Procedure and Administration), and Division Counsel/
Associate Chief Counsel (Tax Exempt and Government Enti-
ties). This procedure also contains revised procedures for
determination letters issued by the Large Business and Inter-
national Division, Small Business/Self Employed Division, Wage
and Investment Division, and Tax Exempt and Government
Entities Division. Rev. Proc. 2013-1 superseded. Rev. Proc.
2013-32 superseded, in part.

### Rev. Proc. 2014-2, page 90.

This revenue procedure explains when and how the Associate
Chief Counsel (Corporate), the Associate Chief Counsel (Finan-
cial 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), and the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities) provide techni-
cal advice memoranda (TAMs) to a Director or an Appeals Area
Director. It also explains the rights that a taxpayer has when a
field office requests a TAM regarding a tax matter. Rev. Proc.
2013-2 superseded.

(Continued on the next page)

Finding Lists begin on page ii.

Department of the Treasury
Internal Revenue Service

### Rev. Proc. 2014-3, page 111.

This revenue procedure provides a revised list of areas of the
Code 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 (Passthroughs and
Special Industries), the Associate Chief Counsel (Procedure
and Administration), and the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities) relating to
matters on which the Service will not issue letter rulings or
determination letters. Rev. Proc. 2013-3 superseded, and
Rev. Proc. 2013-32 superseded, in part.

### Rev. Proc. 2014-7, page 238.

This procedure revises the list of those provisions of the Code
under the jurisdiction of the Associate Chief Counsel (Interna-
tional) relating to matters where the Service will not issue letter
rulings or determination letters. Rev. Proc. 2013-7 super-
seded.

## The IRS Mission

Provide America's taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.

## Introduction

The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal practices and procedures that affect the rights and duties
of taxpayers are published.

Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings to
taxpayers or technical advice to Service field offices, identify-
ing details and information of a confidential nature are deleted
to prevent unwarranted invasions of privacy and to comply with
statutory requirements.

Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

## Part I .- 1986 Code.

This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.

## Part II .- Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A, Tax
Conventions and Other Related Items, and Subpart B, Legisla-
tion and Related Committee Reports.

Part III .- Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury's Office of the Assistant Sec-
retary (Enforcement).

## Part IV .- Items of General Interest.

This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index for
the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

## Part III. Administrative, Procedural, and Miscellaneous

26 CFR § 601.201: Rulings and determination letters.

Rev. Proc. 2014-1

# TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

.01 Description of terms used in this revenue procedure

.02 Updated annually

SECTION 2. WHAT ARE THE FORMS IN WHICH THE SERVICE PROVIDES ADVICE TO TAXPAYERS?

.01 Letter ruling

.02 Closing agreement

.03 Determination letter

.04 Information letter

.05 Oral advice

SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN ADVICE UNDER THIS REVENUE PROCEDURE?

.01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate)

.02 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and Products)

.03 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting)

.04 Issues under the jurisdiction of the Associate Chief Counsel (International)

.05 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special Industries)

.06 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration)

.07 Issues under the jurisdiction of the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities)

SECTION 4. ON WHAT ISSUES MUST WRITTEN ADVICE BE REQUESTED UNDER

DIFFERENT PROCEDURES?

.01 Issues involving alcohol, tobacco, and firearms taxes

.02 Issues involving employee plans, individual retirement accounts (IRAs), and exempt organizations

SECTION 5. UNDER WHAT CIRCUMSTANCES DO THE ASSOCIATE OFFICES ISSUE

LETTER RULINGS?

.01 In income and gift tax matters

.02 Special relief for late S corporation and related elections in lieu of letter ruling process.

.03 A § 301.9100 request for extension of time for making an election or for other relief.

.04 Determinations under § 999(d)

.05 In matters involving § 367

.06 In estate tax matters

.07 In matters involving additional estate tax under § 2032A(c)

.08 In matters involving qualified domestic trusts under § 2056A

.09 In generation-skipping transfer tax matters

.10 In employment and excise tax matters

.11 In procedural and administrative matters

.12 In Indian tribal government matters

.13 On constructive sales price under § 4216(b) or § 4218(c)

.14 Under some circumstances before the issuance of a regulation or other published guidance

SECTION 6. UNDER WHAT CIRCUMSTANCES DOES THE SERVICE NOT ISSUE LETTER RULINGS

OR DETERMINATION LETTERS?

.01 Ordinarily not if the request involves an issue under examination or consideration or in litigation

.02 Ordinarily not in certain areas because of factual nature of the problem or for other reasons

.03 Ordinarily not on part of an integrated transaction.

.04

Ordinarily not on which of two entities is a common law employer

.05

Ordinarily not to business associations or groups

.06

Ordinarily not where the request does not address the tax status, liability, or reporting obligations of the requester

.07

Ordinarily not to foreign governments

.08

Ordinarily not on Federal tax consequences of proposed legislation

.09

Ordinarily not before issuance of a regulation or other published guidance

.10

Not on frivolous issues.

.11

"comfort" letter rulings

.12

Not on alternative plans or hypothetical situations

.13

Not on property conversions after return filed

.14

Circumstances under which determination letters are not issued by a Director

SECTION

7. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS

AND DETERMINATION LETTERS?

.01

Documents and information required in all requests

(1)

Complete statement of facts and other information

(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents pertinent to the transaction, and foreign laws.

(3) Analysis of material facts

(4) Statement regarding whether same issue is in an earlier return and additional information required for § 301.9100 requests

(5) Statement regarding whether same or similar issue was previously ruled on or whether a request involving it was submitted or is currently pending

(6)

Statement regarding interpretation of a substantive provision of an income or estate tax treaty

(7)

Letter from Bureau of Indian Affairs relating to certain letter ruling requests

(8)

Statement of supporting authorities

(9)

Statement of contrary authorities

(10) Statement identifying pending legislation

(11)

Statement identifying information to be deleted from public inspection copy of letter ruling or determination letter

(12)

Signature by taxpayer or authorized representative

(13)

Authorized representatives.

(14)

Power of attorney and declaration of representative

(15)

Penalties of perjury statement

(16)

Number of copies of request to be submitted

(17)

Sample format for a letter ruling request

(18) Checklist for letter ruling requests

.02

Additional procedural information required with request

(1)

To request separate letter rulings for multiple issues in a single situation

(2)

Power of attorney used to indicate recipient of a copy or copies of a letter ruling or a determination letter

(3)

To request a particular conclusion on a proposed transaction

(4) To request expedited handling

(5)

To request the receipt of any document related to letter ruling request by fax.

(6) To request a conference

.03

Address to which to send request for letter ruling or determination letter

(1) Request for letter ruling

(2) Request for determination letter

.04 Pending letter ruling requests.

(1)

Circumstances under which the taxpayer with a pending letter ruling request must notify the Associate office

(2)

Taxpayer must notify the Associate office if a return is filed and must attach the request to the return

.05

When to attach letter ruling or determination letter to return

.06

How to check on status of request for letter ruling or determination letter

.07

Request for letter ruling or determination letter may be withdrawn or Associate office may decline

issue letter ruling.

(1) In general

(2) Notification of appropriate Service official

(3) Refund of user fee

SECTION 8. HOW DO THE ASSOCIATE OFFICES HANDLE LETTER RULING REQUESTS?

.01 Docket, Records, and User Fee Branch receives, initially controls, and refers the requests to the appropriate Associate office

.02 Branch representative of the Associate office contacts taxpayer within 21 calendar days

.03 Determines if transaction can be modified to obtain favorable letter ruling

.04 Not bound by informal opinion expressed

.05 May request additional information

(1) Additional information must be submitted within 21 calendar days

(2) Extension of reply period if justified and approved

(3) Letter ruling request closed if the taxpayer does not submit additional information

(4) Penalties of perjury statement

(5) Faxing request and additional information

(6) Address to which to send additional information

(7) Identifying information

(8) Number of copies

.06 Near the completion of the ruling process, advises the taxpayer of conclusions and, if the Associate offices will

rule adversely, offers the taxpayer the opportunity to withdraw the letter ruling request

.07 May request that taxpayer submit draft proposed letter ruling near the completion of the ruling process.

.08 Issues separate letter rulings for substantially identical letter rulings, but generally issues a single letter ruling for related § 301.9100 letter rulings

.09 Send a copy of the letter ruling to appropriate Service official

SECTION 9. WHAT ARE THE SPECIFIC AND ADDITIONAL PROCEDURES FOR A REQUEST FOR

A CHANGE IN METHOD OF ACCOUNTING FROM THE ASSOCIATE OFFICES?

.01 Automatic and advance consent change in method of accounting requests

(1) Automatic change in method of accounting

(2) Advance consent change in method of accounting

.02 Ordinarily only one change in method of accounting on a Form 3115, Application for Change in Accounting

Method, and a separate Form 3115 for each taxpayer and for each separate and distinct trade or business

.03 Information required with a Form 3115

(1) Facts and other information requested on Form 3115 and in applicable revenue procedures

(2) Statement of contrary authorities

(3) Copies of all contracts, agreements, and other documents

(4) Analysis of material facts

(5) Information regarding whether same issue is in an earlier return

(6) Statement regarding prior requests for a change in method of accounting and other pending requests

(7) Statement identifying pending legislation

(8) Authorized representatives.

(9) Power of attorney and declaration of representative

(10) Tax Information Authorization

(11) Penalties of perjury statement

.04 Additional procedural information required in certain circumstances.

(1) Recipients of original and copy of change in method of accounting correspondence

(2) To request expedited handling

(3) To receive the change in method of accounting letter ruling or any other correspondence related to Form 3115 by fax

(4) To request a conference.

.05 Addresses to which to send Form 3115

.06 A Form 3115 must not be submitted by fax

.07 Docket, Records, and User Fee Branch receives, initially controls, and refers the Form 3115 to the appropriate Associate office

.08 Additional information required

(1) Reply period

(2) Request for extension of reply period.

(3) Penalties of perjury statement

(4) Identifying information

(5) Faxing information request and additional information

(6) Address to which to send additional information to an Associate office

(7) If taxpayer does not timely submit additional information

.09 Circumstances in which the taxpayer must notify the Associate office

.10 Determines if proposed method of accounting can be modified to obtain favorable letter ruling

.11 Near the completion of processing the Form 3115, advises the taxpayer if the Associate office will rule adversely and offers the taxpayer the opportunity to withdraw Form 3115

.12 Advance consent Form 3115 may be withdrawn or Associate office may decline to issue a change in method of accounting letter ruling

.13 How to check status of a pending advance consent Form 3115

.14 Service is not bound by informal opinion

.15 Single letter ruling issued to a taxpayer or consolidated group for qualifying identical change in method of accounting.

.16 Letter ruling ordinarily not issued for one of two or more interrelated items or submethods

.17 Consent Agreement

.18 A copy of the change in method of accounting letter ruling is sent to appropriate Service official.

.19 Consent to change a method of accounting may be relied on subject to limitations

.20 Change in method of accounting letter ruling does not apply to another taxpayer

.21 Associate office discretion to permit requested change in method of accounting

.22 List of automatic change in method of accounting request procedures

.23 Other sections of this revenue procedure that are applicable to Form 3115

SECTION 10. HOW ARE CONFERENCES FOR LETTER RULINGS SCHEDULED?

.01 Schedules a conference if requested by taxpayer

.02 Permits taxpayer one conference of right

.03 Disallows verbatim recording of conferences

.04 Makes tentative recommendations on substantive issues

.05 May offer additional conferences

.06 Requires written confirmation of information presented at conference

.07 May schedule a pre-submission conference

.08 May schedule a conference to be held by telephone

SECTION 11. WHAT EFFECT WILL A LETTER RULING HAVE?

.01 May be relied on subject to limitations

.02 Will not apply to another taxpayer

.03 Will be used by a Field office in examining the taxpayer's return

.04 May be revoked or modified if found to be in error or there has been a change in law

.05 Letter ruling revoked or modified based on material change in facts applied retroactively

.06 Not otherwise generally revoked or modified retroactively

.07 Retroactive effect of revocation or modification applied to a particular transaction

.08 Retroactive effect of revocation or modification applied to a continuing action or series of actions

.09 Generally not retroactively revoked or modified if related to sale or lease subject to excise tax

.10 May be retroactively revoked or modified when transaction is entered into before the issuance of the letter ruling.

.11

Taxpayer may request that retroactivity be limited

SECTION 12. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS?

.01 In income and gift tax matters.

.02 In estate tax matters

.03 In generation-skipping transfer tax matters

.04 In employment and excise tax matters

.05 Requests concerning income, estate, or gift tax returns

.06 Review of determination letters

SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?

.01 Has same effect as a letter ruling

.02 Taxpayer may request that retroactive effect of revocation or modification be limited

SECTION 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN A DIRECTOR AND AN ASSOCIATE OFFICE?

.01 Requests for determination letters

.02 No-rule areas.

.03 Requests for letter rulings

.04 Letter ruling request mistakenly sent to a Director

SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER

RULINGS AND DETERMINATION LETTERS?

.01 Legislation authorizing user fees

.02 Requests to which a user fee applies.

.03 Requests to which a user fee does not apply

.04 Exemptions from the user fee requirements

.05 Fee schedule

.06 Applicable user fee for a request involving multiple offices, fee categories, issues, transactions, or entities

.07 Applicable user fee for requests for substantially identical letter rulings or identical changes in method of accounting

.08 Method of payment

.09 Effect of nonpayment or payment of incorrect amount

.10 Refunds of user fee

.11 Request for reconsideration of user fee

SECTION 16. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2013-1?

SECTION 17. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?

SECTION 18. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE?

SECTION 19. PAPERWORK REDUCTION ACT

DRAFTING INFORMATION

INDEX

APPENDIX A-SCHEDULE OF USER FEES

APPENDIX B-SAMPLE FORMAT FOR A LETTER RULING REQUEST

.72

APPENDIX C-CHECKLIST FOR A LETTER RULING REQUEST

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

APPENDIX E-CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES

.01 Checklists, guideline revenue procedures, and notices

.02 Safe harbor revenue procedures

.03 Automatic change in accounting period revenue procedures

## SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

This revenue procedure explains how the Service provides advice to taxpayers on issues
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), and the Division Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities). It explains the forms of advice and the manner in which advice is
requested by taxpayers and provided by the Service. A sample format for a letter ruling
request is provided in Appendix B. See section 4 of this revenue procedure for instructions on
how to obtain advice on issues outside the scope of this revenue procedure.

Description of terms used
in this revenue procedure

.01 For purposes of this revenue procedure-

(1) the term "Service" includes the four operating divisions of the Internal Revenue Service and
the Associate offices. The four operating divisions are:

(a) Large Business & International Division (LB&I), which generally serves corporations,
including S corporations, and partnerships, with assets in excess of $10 million;

(b) Small Business/Self-Employed Division (SB/SE), which generally serves corporations,
including S corporations, and partnerships, with assets less than or equal to $10 million; filers of
gift, estate, excise, employment and fiduciary returns; individuals filing an individual Federal
income tax return with accompanying Schedule C (Profit or Loss From Business (Sole Propri-
etorship)), Schedule E (Supplemental Income and Loss), Schedule F (Profit or Loss From
Farming), Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee
Business Expenses;

(c) Wage and Investment Division (W&I), which generally serves individuals with wage and
investment income only (and with no international tax returns) filing an individual Federal income
tax return without accompanying Schedule C, E, or F, or Form 2106 or Form 2106-EZ; and

(d) Tax Exempt and Government Entities Division (TE/GE), which serves three distinct
taxpayer segments: employee plans (including IRAs), exempt organizations, and government
entities.

(2) the term "Associate office" refers to 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 (Interna-
tional), the Office of Associate Chief Counsel (Passthroughs and Special Industries), the Office
of Associate Chief Counsel (Procedure and Administration), or the Office of Division Counsel/
Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate.

(3) the term "Director" refers to the Director, Field Operations, LB&I Area Director, Field
Examination, SB/SE; Chief, Estate & Gift Tax Operations, SB/SE; Chief, Employment Tax
Operations, SB/SE; Chief, Excise Tax Operations, SB/SE; Director, Compliance, W&I; Director,
Employee Plans Examinations; Director, Exempt Organizations Examinations; Director, Federal,
State & Local Governments; Director, Tax Exempt Bonds; or Director, Indian Tribal Govern-
ments, as appropriate.

(4) the term "Field office" refers to the respective offices of the Directors, as appropriate.

(5) the term "taxpayer" includes all persons subject to any provision of the Internal Revenue
Code and, when appropriate, their representatives. More specifically, the term includes tax-
exempt organizations, as well as issuers of tax-exempt obligations, mortgage credit certificates,
and tax credit bonds.

.02 This revenue procedure is updated annually as the first revenue procedure of the year,
but it may be modified, amplified or clarified during the year.

SECTION 2. WHAT ARE THE FORMS IN WHICH THE SERVICE PROVIDES ADVICE TO TAXPAYERS?

The Service provides advice in the form of letter rulings, closing agreements, determination letters, information letters, and oral advice.

Letter ruling

.01 A "letter ruling" is a written determination issued to a taxpayer by an Associate office in response to the taxpayer's written inquiry, filed prior to the filing of returns or reports that are required by the tax laws, about its status for tax purposes or the tax effects of its acts or transactions. A letter ruling interprets the tax laws and applies them to the taxpayer's specific set of facts. A letter ruling is issued when appropriate in the interest of sound tax administration. One type of letter ruling is an Associate office's response granting or denying a request for a change in a taxpayer's method of accounting or accounting period. Once issued, a letter ruling may be revoked or modified for a number of reasons. See section 11 of this revenue procedure. A letter ruling may be issued with a closing agreement, however, and a closing agreement is final unless fraud, malfeasance, or misrepresentation of a material fact can be shown. See section 2.02 of this revenue procedure.

Closing agreement

.02 A "closing agreement" is a final agreement between the Service and a taxpayer on a specific issue or liability. It is entered into under the authority in § 7121, and it is final unless fraud, malfeasance, or misrepresentation of a material fact can be shown.

A taxpayer may request a closing agreement with a letter ruling or in lieu of a letter ruling, with respect to a transaction that would be eligible for a letter ruling. In such situations, the Associate Chief Counsel with subject matter jurisdiction signs the closing agreement on behalf of the Service.

A closing agreement may be entered into when it is advantageous to have the matter permanently and conclusively closed or when a taxpayer can show that there are good reasons for an agreement and that making the agreement will not prejudice the interests of the Government. In appropriate cases, a taxpayer may be asked to enter into a closing agreement as a condition for the issuance of a letter ruling. If, in a single case, a closing agreement is requested for each person or entity in a class of taxpayers, separate agreements are entered into only if the class consists of 25 or fewer taxpayers. If the issue and holding are identical for the class and there are more than 25 taxpayers in the class, a "mass closing agreement" will be entered into with the taxpayer who is authorized by the others to represent the class.

Determination letter

.03 A "determination letter" is a written determination issued by a Director that applies the principles and precedents previously announced by the Service to a specific set of facts. It is issued only when a determination can be made based on clearly established rules in a statute, a tax treaty, the regulations, a conclusion in a revenue ruling, or an opinion or court decision that represents the position of the Service.

Information letter

.04 An "information letter" is a statement issued by an Associate office or Director that calls attention to a well-established interpretation or principle of tax law (including a tax treaty) without applying it to a specific set of facts. An information letter may be issued if the taxpayer's inquiry indicates a need for general information or if the taxpayer's request does not meet the requirements of this revenue procedure and the Service concludes that general information will help the taxpayer. An information letter is advisory only and has no binding effect on the Service. If the Associate office issues an information letter in response to a request for a letter ruling that does not meet the requirements of this revenue procedure, the information letter is not a substitute for a letter ruling. The taxpayer should provide a daytime telephone number with the taxpayer's request for an information letter.

Information letters that are issued by the Associate offices to members of the public are made available to the public. Information letters that are issued by the Field offices are not made available to the public.

Because information letters do not constitute written determinations as defined in § 6110, they
are not subject to public inspection under § 6110. The Service makes the information letters
available to the public under the Freedom of Information Act (the "FOIA"). Before any
information letter is made available to the public, an Associate office will redact any information
exempt from disclosure under the FOIA. See, e.g., 5 U.S.C. § 552(b)(6) (exemption for infor-
mation the disclosure of which would constitute a clearly unwarranted invasion of personal
privacy); 5 U.S.C. § 552(b)(3) in conjunction with § 6103 (exemption for returns and return
information as defined in § 6103(b)).

The following documents also will not be available for public inspection as part of this process:

(1) transmittal letters in which the Service furnishes publications or other publicly available
material to taxpayers, without any significant legal discussion;

(2) responses to taxpayer or third party contacts that are inquiries with respect to a pending
request for a letter ruling, technical advice memorandum, or Chief Counsel Advice (which are
subject to public inspection under § 6110 after their issuance); and

(3) responses to taxpayer or third party communications with respect to any investigation,
audit, litigation, or other enforcement action.

Oral Advice

.05

(1) No oral rulings and no written rulings in response to oral requests. The Service does
not orally issue letter rulings or determination letters, nor does it issue letter rulings or determi-
nation letters in response to oral requests from taxpayers. Service employees ordinarily will
discuss with taxpayers or their representatives inquiries about whether the Service will rule on
particular issues and about procedural matters regarding the submission of requests for letter
rulings or determination letters for a particular case.

(2) Discussion possible on substantive issues. At the discretion of the Service and as time
permits, Service employees may also discuss substantive issues with taxpayers or their represen-
tatives. Such a discussion will not bind the Service or the Office of Chief Counsel, and it cannot
be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).

Service employees who are not directly involved in the examination, appeal, or litigation of
particular substantive tax issues will not discuss those issues with taxpayers or their representa-
tives unless the discussion is coordinated with Service employees who are directly involved. The
taxpayer or the taxpayer's representative ordinarily will be asked whether an oral request for
advice or information relates to a matter pending before another office of the Service or before
a Federal court.

If a tax issue is not under examination, in appeals, or in litigation, the tax issue may be
discussed even though the issue is affected by a nontax issue pending in litigation.

A taxpayer may seek oral technical guidance from a taxpayer service representative in a Field
office or Service Center when preparing a return or report.

The Service does not respond to letters seeking to confirm the substance of oral discussions,
and the absence of a response to such a letter is not a confirmation.

(3) Oral guidance is advisory only, and the Service is not bound by it. Oral guidance is
advisory only, and the Service is not bound by it, for example, when examining the taxpayer's
return.

SECTION 3. ON WHAT
ISSUES MAY TAXPAYERS
REQUEST WRITTEN
ADVICE UNDER THIS
PROCEDURE?

Taxpayers may request letter rulings, information letters, and closing agreements under this
revenue procedure on issues within the jurisdiction of the Associate offices. Taxpayers uncertain
as to whether an Associate office has jurisdiction with regard to a specific factual situation may
call the telephone number for the Associate office listed in section 10.07(1) of this revenue
procedure.

Except as provided in section 6.14 of this revenue procedure, taxpayers also may request
determination letters from the Director in the appropriate operating division. See sections 7 and
12 of this revenue procedure. For determinations related to code sections under the jurisdiction
of TE/GE. See Rev. Proc. 2014-4, this Bulletin, and Rev. Proc. 2014-6, this Bulletin.

## Issues under the jurisdiction of the Associate Chief Counsel (Corporate)

.01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate) include those
that involve consolidated returns, corporate acquisitions, reorganizations, liquidations,
redemptions, spinoffs, transfers to controlled corporations, distributions to shareholders,
corporate bankruptcies, the effect of certain ownership changes on net operating loss
carryovers and other tax attributes, debt vs. equity determinations, allocation of income and
deductions among taxpayers, acquisitions made to evade or avoid income tax, and certain
earnings and profits questions.

Issues under the
jurisdiction of the
Associate Chief Counsel
(Financial Institutions and
Products)

.02 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
Products) include those that involve income taxes and changes in method of accounting of banks,
savings and loan associations, real estate investment trusts (REITs), regulated investment com-
panies (RICs), real estate mortgage investment conduits (REMICs), insurance companies and
products, tax-exempt obligations, mortgage credit certificates, tax credit bonds (including spec-
ified tax credit bonds), build America bonds, and financial products.

For the procedures to obtain private letter rulings involving tax-exempt state and local
obligations, see Rev. Proc. 96-16, 1996-1 C.B. 630.

Issues under the
jurisdiction of the
Associate Chief Counsel
(Income Tax and
Accounting)

.03 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax and
Accounting) include those that involve recognition and timing of income and deductions of
individuals and corporations, sales and exchanges, capital gains and losses, installment sales,
equipment leasing, long-term contracts, inventories, amortization, depreciation, the alternative
minimum tax, net operating losses generally, including changes in method of accounting for
these issues, and accounting periods. (Note that issues involving individual retirement
accounts (IRAs) are under the jurisdiction of the Commissioner, Tax Exempt and Government
Entities Division. See section 4.02, this revenue procedure).

## Issues under the jurisdiction of the Associate Chief Counsel (International)

.04 Issues under the jurisdiction of the Associate Chief Counsel (International) include the tax
treatment of nonresident aliens and foreign corporations, withholding of tax on nonresident aliens
and foreign corporations, foreign tax credit, determination of sources of income, income from
sources outside the United States, subpart F questions, domestic international sales corporations
(DISCs), foreign sales corporations (FSCs), exclusions under § 114 for extraterritorial income
(ETI), international boycott determinations, treatment of certain passive foreign investment
companies, income affected by treaty, U.S. possessions, and other matters relating to the activities
of non-U.S. persons within the United States or U.S .- related persons outside the United States,
and changes in method of accounting for these persons.

For the procedures to obtain advance pricing agreements under § 482, see Rev. Proc. 2006-9,
2006-1 C.B. 278, as modified by Rev. Proc. 2008-31, 2008-1 C.B. 1133.

For competent authority procedures related to bilateral and multilateral advance pricing
agreements, see Rev. Proc. 2006-54, 2006-2 C.B. 1035.

Issues under the
jurisdiction of the
Associate Chief Counsel
(Passthroughs and Special
Industries)

.05 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special
Industries) include those that involve income taxes of S corporations (except accounting
periods and methods) and certain noncorporate taxpayers (including partnerships, common
trust funds, and trusts), entity classification, estate (excluding § 6166), gift, generation-
skipping transfer, and certain excise taxes, depletion, and other engineering issues, cooperative
housing corporations, farmers' cooperatives under § 521, the low-income housing, disabled
access, and qualified electric vehicle credits, research and experimental expenditures,
shipowners' protection and indemnity associations under § 526, and certain homeowners
associations under § 528.

Issues under the

.06 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration) include those that involve Federal tax procedure and administration,

jurisdiction of the

Associate Chief Counsel

disclosure and privacy law, reporting and paying taxes (including payment of taxes under

(Procedure and

§ 6166), assessing and collecting taxes (including interest and penalties), abating, crediting, or refunding overassessments or overpayments of tax, and filing information returns.

Administration)

Issues under the

.07 Issues under the jurisdiction of the Division Counsel/Associate Chief Counsel (Tax

jurisdiction of the Division

Exempt and Government Entities) include the application of employment taxes and taxes on self-employment income, and the tax treatment of tax-exempt organizations (including federal,

Counsel/Associate Chief

Counsel (Tax Exempt and Government Entities)

state, local, and Indian tribal governments), executive compensation and employee benefit programs (including changes in method of accounting), § 457 deferred compensation plans, and the sale of stock to employee stock ownership plans or eligible worker-owned cooperatives under § 1042. Note that certain issues involving exempt organizations, employee plans, and government entities fall under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division of the Internal Revenue Service; see Rev. Proc. 2014-4 and Rev. Proc. 2014-6, this Bulletin.

SECTION 4. ON WHAT
ISSUES MUST WRITTEN
ADVICE BE
REQUESTED UNDER
DIFFERENT
PROCEDURES?

Issues involving alcohol,
tobacco, and firearms taxes

.01 The procedures for obtaining letter rulings, closing agreements, determination letters,
information letters, and oral advice that apply to Federal alcohol, tobacco, and firearms taxes
under subtitle E of the Code are under the jurisdiction of the Alcohol and Tobacco Tax and
Trade Bureau of the Department of the Treasury.

Issues involving employee
plans, individual
retirement accounts
(IRAs), and exempt
organizations

.02 The procedures for obtaining letter rulings, closing agreements, determination letters,
information letters, and oral advice on employee plans, IRAs, and exempt organizations are under
the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. See Rev.
Proc. 2014-4, this Bulletin. See also Rev. Proc. 2014-6, this Bulletin, for the procedures for
issuing determination letters on the qualified status of pension, profit-sharing, stock bonus,
annuity, and employee stock ownership plans under §§ 401, 403(a), 409, and 4975(e)(7), and the
status for exemption of any related trusts or custodial accounts under § 501(a).

For the user fee requirements applicable to requests under the jurisdiction of the Commissioner,
Tax Exempt and Government Entities Division, see Rev. Proc. 2014-8, this Bulletin.

# SECTION 5. UNDER WHAT CIRCUMSTANCES DO THE ASSOCIATE OFFICES ISSUE LETTER RULINGS?

## In income and gift tax matters

.01 In income and gift tax matters, an Associate office generally issues a letter ruling on a
proposed transaction or on a completed transaction if the letter ruling request is submitted
before the return is filed for the year in which the transaction is completed. An Associate
office will not ordinarily issue a letter ruling on a completed transaction if the letter ruling
request is submitted after the return is filed for the year in which the transaction is completed.
"Not ordinarily" means that unique and compelling reasons must be demonstrated to justify
the issuance of a letter ruling submitted after the return is filed for the year in which the
transaction is completed. The taxpayer must contact the Field office having audit jurisdiction
over their return and obtain the Field's consent to the issuance of such a letter ruling.

## Special relief for late S corporation and related elections in lieu of letter ruling process

A § 301.9100 request for
extension of time for
making an election or for
other relief

.02 In lieu of requesting a letter ruling under this revenue procedure, a taxpayer may obtain
relief for certain late S corporation and related elections by following the procedure in Rev.
Proc. 2013-30, 2013-36 I.R.B. 173. This procedure is in lieu of the letter ruling process and
does not require payment of any user fee. See section 3.01 of Rev. Proc. 2013-30, and section
15.03(3) of this revenue procedure.

.03 An Associate office will consider a request for an extension of time for making an election
or other application for relief under § 301.9100-3 of the Treasury Regulations, even if submitted
after the return covering the issue presented in the § 301.9100 request has been filed, an
examination of the return has begun, or the issues in the return are being considered by Appeals
or a Federal court. A § 301.9100 request is a letter ruling request. Therefore, the § 301.9100
request should be submitted pursuant to this revenue procedure. An election made pursuant to
§ 301.9100-2 for an automatic extension of time is not a letter ruling request and does not require
payment of any user fee. See § 301.9100-2(d) and section 15.03(1) of this revenue procedure.

(1) Format of request. A § 301.9100 request (other than an election made pursuant to
§ 301.9100-2) must be in the general form of, and meet the general requirements for, a letter
ruling request. These requirements are given in section 7 of this revenue procedure. In addition,
a § 301.9100 request must include the information required by § 301.9100-3(e).

(2) Period of limitation. The filing of a request for relief under § 301.9100 does not suspend
the running of any applicable period of limitation. See § 301.9100-3(d)(2). The Associate office
ordinarily will not issue a § 301.9100 ruling if the period of limitation on assessment under
§ 6501(a) for the taxable year in which an election should have been made, or for any taxable
years that would have been affected by the election had it been timely made, will expire before
receipt of a § 301.9100 letter ruling. See § 301.9100-3(c)(1)(ii). If, however, the taxpayer
consents to extend the period of limitation on assessment under § 6501(c)(4) for the taxable year
in which the election should have been made and for any taxable years that would have been
affected by the election had it been timely made, the Associate office may issue the letter ruling.
See § 301.9100-3(d)(2). Note that the filing of a claim for refund under § 6511 does not extend
the period of limitation on assessment. If § 301.9100-3 relief is granted, the Associate office may
require the taxpayer to consent to an extension of the period of limitation on assessment. See
§ 301.9100-3(d)(2).

(3) Taxpayer must notify the Associate office if examination of its return begins while the
request is pending. The taxpayer must notify the Associate office if the Service begins an
examination of the taxpayer's return for the taxable year in which an election should have been
made, or for any taxable years that would have been affected by the election had it been timely
made, while a § 301.9100-3 request is pending. This notification must include the name and
telephone number of the examining agent. See § 301.9100-3(e)(4)(i) and section 7.04(1)(b) of
this revenue procedure.

(4) Associate office will notify examination agent, appeals officer, or attorney of a
§ 301.9100 request if the taxpayer's return is being examined by a Field office or is being
considered by an Appeals office or a Federal court. If the taxpayer's return for the taxable year
in which an election should have been made, or for any taxable years that would have been
affected by the election had it been timely made, is being examined by a Field office or considered
by an Appeals office or a Federal court, the Associate office will notify the appropriate
examination agent, appeals officer, or attorney that a § 301.9100 request has been submitted to
the Associate office. The examination agent, appeals officer, or attorney is not authorized to deny
consideration of a § 301.9100 request. The letter ruling will be mailed to the taxpayer and a copy
will be sent to the appeals officer, attorney, or appropriate Service official in the operating
division that has examination jurisdiction over the taxpayer's tax return.

(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009-41. Eligible entities
requesting a letter ruling because they do not meet all of the eligibility requirements of section
4.01 of Rev. Proc. 2009-41, 2009-39 I.R.B. 439, must include either the following representa-
tion as part of the entity's request for a letter ruling or an explanation regarding why they do not

qualify to do so: "All required U.S. tax and information returns of the entity (or, if the entity was
not required to file any such returns under the desired classification, then all required U.S. tax and
information returns of each affected person as defined in Section 4.02 of Rev. Proc. 2009-41)
were filed timely or within 6 months of the due date of the respective return (excluding
extensions) as if the entity classification election had been in effect on the requested date. No U.S.
tax or information returns were filed inconsistently with those described in the prior sentence."

(6) Relief for late initial classification election. In lieu of requesting a letter ruling under
§ 301.9100-1 through § 301.9100-3 and this revenue procedure, entities that satisfy the
requirements set forth in section 4.01 of Rev. Proc. 2009-41, 2009-39 I.R.B. 439, may apply for
late classification election relief under Rev. Proc. 2009-41. Requests for such relief are not
subject to user fees. See section 3.01 of Rev. Proc. 2009-41 and section 15.03(2) of this revenue
procedure.

Determinations under
§ 999(d)

.04 As provided in Rev. Proc. 77-9, 1977-1 C.B. 542, the Associate Chief Counsel
(International) issues determinations under § 999(d) that may deny certain benefits of the foreign
tax credit and the deferral of earnings of foreign subsidiaries and domestic international sales
corporations (DISCs) to a person if that person is a member of a controlled group (within the
meaning of § 993(a)(3)) that includes the person, or a foreign corporation of which a member of
the controlled group is a United States shareholder, that agrees to participate in, or cooperate with,
an international boycott. The same principles shall apply with respect to exclusions under § 114
for exterritorial income (ETI). Requests for determinations under Rev. Proc. 77-9 are letter ruling
requests and should be submitted to the Associate office pursuant to this revenue procedure.

In matters involving § 367

.05 Unless the issue is covered by section 6 of this revenue procedure, the Associate Chief
Counsel (International) may issue a letter ruling under § 367 even if the taxpayer does not request
a letter ruling as to the characterization of the transaction under the reorganization provisions of
the Code. The Associate office will determine the § 367 consequences of a transaction based on
the taxpayer's characterization of the transaction but will indicate in the letter ruling that it
expresses no opinion as to the characterization of the transaction under the reorganization. The
Associate office may decline to issue a § 367 ruling in situations in which the taxpayer
inappropriately characterizes the transaction under the reorganization provisions.

## In estate tax matters

.06 In general, the Associate Chief Counsel (Passthroughs and Special Industries) issues letter
rulings on transactions affecting the estate tax on the prospective estate of a living person. The
Associate office will not issue letter rulings for prospective estates on computations of tax,
actuarial factors, or factual matters. With respect to the transactions affecting the estate tax of the
decedent's estate, generally the Associate office issues letter rulings before the decedent's estate
tax return is filed.

If the taxpayer is requesting a letter ruling regarding a decedent's estate tax and the estate tax
return is due to be filed before the letter ruling is expected to be issued, the taxpayer should obtain
an extension of time for filing the return and should notify the Associate office branch considering
the letter ruling request that an extension has been obtained.

If the return is filed before the letter ruling is received from the Associate office, the taxpayer
must disclose on the return that a letter ruling has been requested, attach a copy of the pending
letter ruling request to the return, and notify the Associate office that the return has been filed. See
section 7.04(2) of this revenue procedure. The Associate office will make every effort to issue the
letter ruling within 3 months of the date the return was filed.

If the taxpayer requests a letter ruling after the return is filed, but before the return is examined,
the taxpayer must notify the Field office having jurisdiction over the return that a letter ruling has
been requested, attach a copy of the pending letter ruling request, and notify the Associate office
that a return has been filed. See section 7.04(2) of this revenue procedure. The Associate office
will make every effort to issue the letter ruling within 3 months of the date the return has been
filed.

If the letter ruling cannot be issued within that 3-month period, the Associate office will notify
the Field office having jurisdiction over the return, which may, by memorandum to the Associate
office, grant an additional period for the issuance of the letter ruling.

In matters involving
additional estate tax under
§ 2032A(c)

.07 In matters involving additional estate tax under § 2032A(c), the Associate Chief
Counsel (Passthroughs and Special Industries) issues letter rulings on proposed transactions
and on completed transactions that occurred before the return is filed.

In matters involving
qualified domestic trusts
under § 2056A

.08 In matters involving qualified domestic trusts under § 2056A, the Associate Chief
Counsel (Passthroughs and Special Industries) issues letter rulings on proposed transactions
and on completed transactions that occurred before the return is filed.

### In generation-skipping transfer tax matters

.09 In general, the Associate Chief Counsel (Passthroughs and Special Industries) issues
letter rulings on proposed transactions that affect the generation-skipping transfer tax and on
completed transactions that occurred before the return is filed. In the case of a generation-
skipping trust or trust equivalent, letter rulings are issued either before or after the trust or
trust equivalent has been established.

In employment and excise
tax matters

.10 In employment and excise tax matters, the Associate offices issue letter rulings on proposed
transactions and on completed transactions either before or after the return is filed for those
transactions.

Requests regarding employment status (employer/employee relationship) from Federal agen-
cies and instrumentalities or their workers must be submitted directly to the Division Counsel/
Associate Chief Counsel (Tax Exempt and Government Entities). Requests regarding employ-
ment status from other taxpayers must first be submitted to the appropriate Service office listed
on the current Form SS-8, Determination of Worker Status for Purposes of Federal Employment
Taxes and Income Tax Withholding. See section 12.04 of this revenue procedure. If the service
recipient (the firm) requests the letter ruling, the firm will receive any issued letter ruling. A copy
will also be sent to any identified workers. If the worker requests the letter ruling and the firm has
been contacted for information, both the worker and the firm will receive any issued letter ruling.
The letter ruling will apply to any individuals engaged by the firm under substantially similar
circumstances.

In procedural and
administrative matters

.11 The Associate Chief Counsel (Procedure and Administration) issues letter rulings on
matters arising under the Code and related statutes and regulations that involve-

(1) the time, place, manner, and procedures for reporting and paying taxes; or

(2) the filing of information returns.

In Indian tribal
government matters

.12 Pursuant to Rev. Proc. 84-37, 1984-1 C.B. 513, as modified by Rev. Proc. 86-17, 1986-1
C.B. 550, and this revenue procedure, the Office of Division Counsel/Associate Chief Counsel
(Tax Exempt and Government Entities) issues determinations recognizing a tribal entity as an
Indian tribal government within the meaning of § 7701(a)(40) or as a political subdivision of an
Indian tribal government under § 7871(d) if it determines, after consultation with the Secretary
of the Interior, that the entity satisfies the statutory definition of an Indian tribal government or
has been delegated governmental functions of an Indian tribal government. Requests for deter-
minations under Rev. Proc. 84-37 are letter ruling requests, and, therefore, should be submitted
to the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government
Entities) pursuant to this revenue procedure.

(1) Definition of Indian tribal government. The term "Indian tribal government" is defined
under § 7701(a)(40) to mean the governing body of any tribe, band, community, village, or group
of Indians, or (if applicable) Alaska Natives, which is determined by the Secretary of the
Treasury, after consultation with the Secretary of the Interior, to exercise governmental functions.
Section 7871(d) provides that, for purposes of § 7871(a), a subdivision of an Indian tribal
government shall be treated as a political subdivision of a state if the Secretary of the Treasury
determines, after consultation with the Secretary of the Interior, that the subdivision has been

Sec. 5.12

delegated the right to exercise one or more of the substantial governmental functions of the Indian
tribal government.

(2) Inclusion in list of tribal governments. Rev. Proc. 2008-55, 2008-2 C.B. 768, designates
the Indian tribal entities that appear on the current or future lists of federally recognized Indian
tribes published annually by the Department of the Interior, Bureau of Indian Affairs, as Indian
tribal governments that are treated similarly to states for certain Federal tax purposes. Rev. Proc.
84-36, 1984-1 C.B. 510, as modified by Rev. Proc. 86-17, 1986-1 C.B. 550, provides a list of
political subdivisions of Indian tribal governments that are treated as political subdivisions of
states for certain Federal tax purposes. Under Rev. Proc. 84-37, as modified by Rev. Proc. 86-17,
tribal governments or subdivisions recognized under § 7701(a)(40) or § 7871(d) will be included
in the list of recognized tribal government entities in future lists of federally recognized Indian
tribes published annually by the Department of the Interior, Bureau of Indian Affairs, or revised
versions of Rev. Proc. 84-36.

On constructive sales price
under § 4216(b) or
§ 4218(c)

.13 The Associate Chief Counsel (Passthroughs and Special Industries) will issue letter
rulings in all cases on the determination of a constructive sales price under § 4216(b) or
§ 4218(c) and in all other cases on prospective transactions if the law or regulations require a
determination of the effect of a proposed transaction for Federal tax purposes. See section
6.14(5) of this revenue procedure.

Under some circumstances
before the issuance of a
regulation or other
published guidance

.14 In general, the Service will not issue a letter ruling or determination letter on an issue that
it cannot readily resolve before the promulgation of a regulation or other published guidance. See
section 6.09 of this revenue procedure.

However, an Associate office may issue letter rulings under the following conditions:

(1) Answer is clear or is reasonably certain. If the letter ruling request presents an issue for
which the answer seems clear by applying the statute, regulations, and applicable case law to the
facts or for which the answer seems reasonably certain but not entirely free from doubt.

(2) Answer is not reasonably certain. If the letter ruling request presents an issue for which
the answer does not seem reasonably certain, the Associate office may issue the letter ruling,
using its best efforts to arrive at a determination, if it is in the best interest of tax administration.

SECTION 6. UNDER
WHAT CIRCUMSTANCES
DOES THE SERVICE NOT
ISSUE LETTER RULINGS
OR DETERMINATION
LETTERS?

Ordinarily not if the request involves an issue under examination or consideration or in

.01 The Service ordinarily does not issue a letter ruling or a determination letter if, at the time of the request, the identical issue is involved in the taxpayer's return for an earlier period and that issue-

litigation

(1) is being examined by a Field office;

(2) is being considered by Appeals;

(3) is pending in litigation in a case involving the taxpayer or a related taxpayer;

(4) has been examined by a Field office or considered by Appeals and the statutory period of limitations on assessment or on filing a claim for refund or credit of tax has not expired; or

(5) has been examined by a Field office or considered by Appeals and a closing agreement covering the issue or liability has not been entered into by a Field office or by Appeals.

If a return dealing with an issue for a particular year is filed while a request for a letter ruling
on that issue is pending, an Associate office will issue the letter ruling unless it is notified by the
taxpayer or otherwise learns that an examination of that issue or the identical issue on an earlier
year's return has been started by a Field office. See section 7.04 of this revenue procedure. In
income and gift tax matters, even if an examination has begun, an Associate office ordinarily will
issue the letter ruling if the Field office agrees by memorandum to the issuance of the letter ruling.

Ordinarily not in certain
areas because of factual
nature of the problem or
for other reasons

.02 The Service ordinarily does not issue letter rulings or determination letters in certain areas
because of the factual nature of the matter involved or for other reasons. Rev. Proc. 2014-3, this
Bulletin, and Rev. Proc. 2014-7, this Bulletin, provide a list of these areas. This list is not
all-inclusive because the Service may decline to issue a letter ruling or a determination letter when
appropriate in the interest of sound tax administration, including due to resource constraints, or
on other grounds whenever warranted by the facts or circumstances of a particular case.

Instead of issuing a letter ruling or determination letter, the Service may, when it is considered
appropriate and in the interest of sound tax administration, issue an information letter calling
attention to well-established principles of tax law.

If the Service determines that it is not in the interest of sound tax administration to issue a letter
ruling or determination letter due to resource constraints, it will adopt a consistent approach with
respect to taxpayers that request a ruling on the same issue. The Service will also consider adding
the issue to the no rule list at the first opportunity. See sections 2.01 and 3.02 of Rev. Proc.
2014-3, this Bulletin.

Ordinarily not on part of
an integrated transaction

.03 An Associate office ordinarily will not issue a letter ruling on only part of an integrated
transaction. If a part of a transaction falls under a no-rule area, a letter ruling on other parts of the
transaction may be issued. Before preparing the letter ruling request, a taxpayer should call a
branch having jurisdiction for the matters on which the taxpayer is seeking a letter ruling to
discuss whether the Associate office will issue a letter ruling on part of the transaction.

In addition, the Service will not rule on the qualification of any transaction under § 332, 351,
355, or 1036, or on whether a transaction constitutes a reorganization within the meaning of
§ 368, regardless of whether such transaction is part of an integrated transaction (see section
3.01(45) of Rev. Proc. 2014-3, this Bulletin). Instead, the Associate Chief Counsel (Corporate)
will only issue a letter ruling on significant issues (within the meaning of section 3.01(45) of Rev.
Proc. 2014-3) presented in a transaction described in § 332, 351, 355, 368, or 1036. For example,
the Service may rule on significant issues under § 1.368-1(d) (continuity of business enterprise)
and § 1.368-1(e) (continuity of interest). Letter rulings requested under this section 6.03 are
subject to the no-rule policies of Rev. Proc. 2014-3. In addition, the Service will not rule on the
tax consequences that result from the application of § 332, 351, 355, 368, or 1036 (including
nonrecognition and basis) except to the extent of a significant issue and only to the extent
consistent with the no-rule policies of Rev. Proc. 2014-3.

Before preparing a letter ruling request under this section involving significant issues presented
in a transaction described in § 332, 351, 355, 368, or 1036, a taxpayer is encouraged to call the
Office of Associate Chief Counsel (Corporate) at the telephone number provided in section
10.07(1)(a) of this revenue procedure to discuss whether the Service will entertain a letter ruling
request under this section 6.03. The Service reserves the right to rule on any other aspect of the
transaction (including ruling adversely) to the extent the Service believes it is in the best interests
of tax administration. Cf. section 2.01 of Rev. Proc. 2014-3.

Taxpayers may request rulings on one or more significant issues in a single letter ruling request.
Letter ruling requests under this section 6.03 must include for each significant issue:

(1) A narrative description of the transaction that puts the issue in context;

(2) A statement identifying the issue;

(3) An analysis of the relevant law, which should set forth the authorities most closely related
to the issue and explain why these authorities do not resolve the issue, and an explanation
concerning why the issue is significant within the meaning of section 3.01(45) of Rev. Proc.
2014-3;

(4) Information and representations relevant to the issue. Taxpayers should consult other
published authorities (see, for example, Appendix E of this revenue procedure, which identifies
certain checklist and guideline revenue procedures), including those modified by Rev. Proc.
2013-32, 2013-28 I.R.B. 55 (e.g., Rev. Proc. 96-30, 1996-1 C.B. 696), and other authorities
(e.g., Rev. Rul. 73-234, 1973-1 C.B. 180 (applying § 355(b) to the activities performed by
employees of a corporation engaged in a farming business)), to identify information or repre-
sentations but only to the extent that they relate to the issue; and

(5) The precise ruling(s) requested.

If the Service issues a letter ruling on a significant issue under this procedure, then the letter
ruling will state that no opinion is expressed as to any issue or step not specifically addressed by
the letter. In addition, letter rulings issued under this procedure will contain the following (or
similar) language:

This Office expresses no opinion as to the overall tax consequences of the transaction(s)
described in this letter, including qualification of the transaction under [section 332, 351,
355, 368, or 1036, as appropriate].

Ordinarily not on which of
two entities is a common
law employer

.04 The Service ordinarily does not issue a letter ruling or a determination letter on which
of two entities, under common law rules applicable in determining the employer-employee
relationship, is the employer, when one entity is treating the worker as an employee.

Ordinarily not to business
associations or groups

.05 The Service ordinarily does not issue letter rulings or determination letters to business,
trade, or industrial associations or to similar groups concerning the application of the tax laws to
members of the group. Groups and associations, however, may submit suggestions of generic
issues that could be appropriately addressed in revenue rulings. See Rev. Proc. 89-14, 1989-1
C.B. 814, which states the objectives of, and standards for, the publication of revenue rulings and
revenue procedures in the Internal Revenue Bulletin.

The Service may issue letter rulings or determination letters to groups or associations on their
own tax status or liability if the request meets the requirements of this revenue procedure.

Ordinarily not where the
request does not address
the tax status, liability, or
reporting obligations of the
requester

.06 The Service ordinarily does not issue letter rulings or determination letters regarding the tax
consequences of a transaction for taxpayers who are not directly involved in the request if the
requested letter ruling or determination letter would not address the tax status, liability, or
reporting obligations of the requester. For example, a taxpayer may not request a letter ruling
relating to the tax consequences of a transaction to a customer or client, if the tax status, liability,
or reporting obligations of the taxpayer would not be addressed in the ruling, because the
customer or client is not directly involved in the letter ruling request. The tax liability of each
shareholder is, however, directly involved in a letter ruling on the reorganization of a corporation.
Accordingly, a corporate taxpayer could request a letter ruling that solely addressed the tax
consequences to its shareholders of a proposed reorganization.

Rev. Proc. 96-16, 1996-1 C.B. 630, sets forth rules for letter ruling requests involving
tax-exempt state and local government obligations.

Ordinarily not to foreign
governments

.07 The Service ordinarily does not issue letter rulings or determination letters to foreign
governments or their political subdivisions about the U.S. tax effects of their laws. The
Associate offices also do not issue letter rulings on the effect of a tax treaty on the tax laws of
a treaty country for purposes of determining the tax of the treaty country. See section 13.02 of
Rev. Proc. 2006-54, 2006-2 C.B. 1035. Treaty partners can continue to address matters such
as these under the provisions of the applicable tax treaty. In addition, the Associate offices
may issue letter rulings to foreign governments or their political subdivisions on their own tax

Sec. 6.07
January 2, 2014

status or liability under U.S. law if the request meets the requirements of this revenue
procedure.

Ordinarily not on Federal
tax consequences of
proposed legislation

.08 The Associate offices ordinarily do not issue letter rulings on a matter involving the
Federal tax consequences of any proposed Federal, state, local, municipal, or foreign
legislation. The Office of Division Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities) may issue letter rulings regarding the effect of proposed state, local, or
municipal legislation upon an eligible deferred compensation plan under § 457(b) provided
that the letter ruling request relating to the plan complies with the other requirements of this
revenue procedure. The Associate offices also may provide general information in response to
an inquiry.

Ordinarily not before
issuance of a regulation or
other published guidance

.09 Generally, the Service will not issue a letter ruling or a determination letter if the
request presents an issue that cannot be readily resolved before a regulation or any other
published guidance is issued. When the Service has closed a regulation project or any other
published guidance project that might have answered the issue or decided not to open a
regulation project or any other published guidance project, the Associate offices may consider
all letter ruling requests unless the issue is covered by section 6 of this revenue procedure,
Rev. Proc. 2014-3, this Bulletin, or Rev. Proc. 2014-7, this Bulletin.

Not on frivolous issues

.10 The Service will not issue a letter ruling or a determination letter on frivolous issues. A
"frivolous issue" is one without basis in fact or law or one that asserts a position that courts have
held frivolous or groundless. Examples of frivolous or groundless issues include, but are not
limited to:

(1) frivolous "constitutional" claims, such as claims that the requirement to file tax returns and
pay taxes constitutes an unreasonable search barred by the Fourth Amendment, violates Fifth and
Fourteenth Amendment protections of due process, violates Thirteenth Amendment protections
against involuntary servitude, or is unenforceable because the Sixteenth Amendment does not
authorize nonapportioned direct taxes or was never ratified;

(2) claims that income taxes are voluntary, that the term "income" is not defined in the Internal
Revenue Code, or that preparation and filing of Federal income tax returns violates the Paperwork
Reduction Act;

(3) claims that tax may be imposed only on coins minted under a gold or silver standard or that
receipt of Federal Reserve Notes does not cause an accretion to wealth;

(4) claims that a person's income is not taxable because he or she falls within a class entitled
to "reparation claims" or an extra-statutory class of individuals exempt from tax, e.g., "free-born"
individuals;

(5) claims that a taxpayer can refuse to pay taxes on the basis of opposition to certain
Governmental expenditures;

(6) claims that taxes apply only to Federal employees; only to residents of Puerto Rico, Guam,
the U.S. Virgin Islands, the District of Columbia, or "Federal enclaves;" or that §§ 861 through
865 or any other provision of the Code imposes taxes on U.S. citizens and residents only on
income derived from foreign based activities;

(7) claims that wages or personal service income are "not income," are "nontaxable receipts,"
or are a "nontaxable exchange for labor;"

(8) claims that income tax withholding by an employer on wages is optional; or

(9) other claims that the courts have characterized as frivolous or groundless.

Additional examples of frivolous or groundless issues may be found in IRS publications and
other guidance (including, but not limited to, Notice 2010-33, Frivolous Positions, and I.R.M.
4.10.12.1.1, Frivolous Arguments).

No "comfort" letter rulings

.11 A letter ruling will not be issued with respect to an issue that is clearly and adequately addressed by statute, regulations, decision of a court, revenue rulings, revenue procedures, notices, or other authority published in the Internal Revenue Bulletin (Comfort Ruling). However, except with respect to issues under § 332, 351, 355, 368, or 1036 and the tax consequences resulting from the application of such Code sections (see generally section 6.03), the Associate office may, in its discretion, decide to issue a Comfort Ruling if the Associate office is otherwise issuing a letter ruling to the taxpayer on another issue arising in the same transaction.

Not on alternative plans or hypothetical situations

.12 The Service will not issue a letter ruling or a determination letter on alternative plans of proposed transactions or on hypothetical situations.

Not on property conversion after return filed

.13 An Associate office will not issue a letter ruling on the replacement of involuntarily converted property, whether or not the property has been replaced, if the taxpayer has already filed a Federal tax return for the taxable year in which the property was converted. A Director may issue a determination letter in this case. See section 12.01 of this revenue procedure.

Circumstances under which determination letters are not issued by a Director

.14 A Director will not issue a determination letter if-

(1) the taxpayer has directed a similar inquiry to an Associate office;

(2) the same issue, involving the same taxpayer or a related taxpayer, is pending in a case in litigation or before Appeals;

(3) the request involves an industry-wide problem;

(4) the specific employment tax question at issue in the request has been, or is being, considered by the Central Office of the Social Security Administration or the Railroad Retirement Board for the same taxpayer or a related taxpayer; or

(5) the request is for a determination of constructive sales price under § 4216(b) or § 4218(c), which deal with special provisions applicable to the manufacturers excise tax. The Associate Chief Counsel (Passthroughs and Special Industries) will, in certain circumstances, issue letter rulings in this area. See section 5.13 of this revenue procedure.

SECTION 7. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS AND DETERMINATION LETTERS?

This section provides the general instructions for requesting letter rulings and determination letters. See section 9 of this revenue procedure for the specific and additional procedures for requesting a change in method of accounting. Requests for letter rulings, closing agreements, and determination letters require the payment of the applicable user fee listed in Appendix A of this revenue procedure. Certain changes in method of accounting under the automatic change request procedures (see section 9.01(1) of this revenue procedure) and certain changes in accounting periods made under automatic change request procedures do not require payment of a user fee (see Appendix E of this revenue procedure). For additional user fee requirements, see section 15 of this revenue procedure.

Specific and additional instructions also apply to requests for letter rulings and determination letters on certain matters. Those matters are listed in Appendix E of this revenue procedure with a reference (usually to another revenue procedure) where more information can be obtained.

Documents and information required in all requests

.01

Facts

(1) Complete statement of facts and other information. Each request for a letter ruling or a determination letter must contain a complete statement of all facts relating to the transaction. These facts include-

(a) names, addresses, telephone numbers, and taxpayer identification numbers of all interested parties (the term "all interested parties" does not mean all shareholders of a widely held

corporation requesting a letter ruling relating to a reorganization or all employees where a large
number may be involved);

(b) the annual accounting period, and the overall method of accounting (cash or accrual) for
maintaining the accounting books and filing the Federal income tax return, of all interested
parties;

(d) a complete statement of the business reasons for the transaction;

(e) a detailed description of the transaction; and

(f) all other facts relating to the transaction or to the taxpayer's requested tax treatment thereof.

Documents and foreign
laws

## (2) Copies of all contracts, wills, deeds, agreements, instruments, other documents pertinent to the transaction, and foreign laws.

(a) Documents. True copies of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, and other documents pertinent to the transaction must be
submitted with the request.

If the request concerns a corporate distribution, reorganization, or similar transaction, the
corporate balance sheet and profit and loss statement should also be submitted. If the request
relates to a prospective transaction, the most recent balance sheet and profit and loss statement
should be submitted.

If any document, including any balance sheet and profit and loss statement, is in a language
other than English, the taxpayer must also submit a certified English translation of the document,
along with a true copy of the document. For guidelines on the acceptability of such documents,
see paragraph (c) of this section 7.01(2).

Each document other than the request should be labeled and attached to the request in
alphabetical sequence. Original documents such as contracts, wills, etc., should not be submitted
because they become part of the Service's file and will not be returned.

(b) Foreign laws. The taxpayer must submit with the request a copy of the relevant parts of
all foreign laws, including statutes, regulations, administrative pronouncements, and any other
relevant legal authority. The documents submitted must be in the official language of the country
involved and must be copied from an official publication of the foreign government or another
widely available and generally accepted publication. If English is not the official language of the
country involved, the taxpayer must also submit a copy of an English language version of the
relevant parts of all foreign laws. This translation must be: (i) from an official publication of the
foreign government or another widely available, generally accepted publication; or (ii) a certified
English translation submitted in accordance with paragraph (c) of this section 7.01(2).

The taxpayer must identify the title and date of publication, including updates, of any widely
available and generally accepted publication that the taxpayer (or the taxpayer's qualified
translator) uses as a source for the relevant parts of the foreign law.

(c) Standards for acceptability of submissions of documents in a language other than
English and certified English translations of laws in a language other than English. The
taxpayer must submit with the request an accurate and complete certified English translation of
the relevant parts of all contracts, wills, deeds, agreements, instruments, trust documents,
proposed disclaimers, and other documents pertinent to the transaction that are in a language other
than English. If the taxpayer chooses to submit certified English translations of foreign laws, those
translations must be based on an official publication of the foreign government or another widely
available and generally accepted publication. In either case, the translation must be that of a
qualified translator and must be attested to by the translator. The attestation must contain: (i) a

Sec. 7.01
January 2, 2014

statement that the translation submitted is a true and accurate translation of the foreign language document or law; (ii) a statement as to the attestant's qualifications as a translator and as to that attestant's qualifications and knowledge regarding tax matters or foreign law if the law is not a tax law; and (iii) the attestant's name and address.

Analysis of material facts

(3) Analysis of material facts. The request must be accompanied by an analysis of facts and their bearing on the issue or issues. If documents attached to a request contain material facts, they must be included in the taxpayer's analysis of facts in the request rather than merely incorporated by reference.

Same issue in an earlier return under Examination, before Appeals, or before a Federal Court

(4) Statement regarding whether same issue is in an earlier return and additional information required for § 301.9100 requests. The request must state whether, to the best of the knowledge of both the taxpayer and the taxpayer's representatives, the same issue is addressed in 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, or any predecessor that-

(a) is currently under examination, before Appeals, or before a Federal court; or

(b) was previously under examination, before Appeals, or before a Federal court.

The Service will not ordinarily issue a letter ruling or determination letter if, at the time of the request, the identical issue is under examination or consideration or in litigation. See section 6.01 in this revenue procedure. A limited exception to the above rule is made for a § 301.9100 request. See section 5.03 in this revenue procedure.

If a § 301.9100 request involves a tax year that is currently under examination, before Appeals, or before a Federal court, the taxpayer must notify the Service, as outlined above. This notification must include the name and telephone number of the examining agent or appeals officer.

Same or similar issue in a request previously submitted or currently pending

(5) Statement regarding whether same or similar issue was previously ruled on or whether a request involving it was submitted or is currently pending. The request must state whether, to the best of the knowledge of both the taxpayer and the taxpayer's representatives-

(a) the Service previously ruled on the same or a similar issue for the taxpayer, a related taxpayer within the meaning of § 267, or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504, or a predecessor;

(b) the taxpayer, a related taxpayer, a predecessor, or any of their representatives previously submitted a request (including an application for change in method of accounting) involving the same or a similar issue but no letter ruling or determination letter was issued;

(c) 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; or

(d) 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 a similar issue.

If the statement is affirmative for (a), (b), (c), or (d) of this section 7.01(5), the statement must give the date the request was submitted, the date the request was withdrawn or ruled on, if applicable, and other details of the Service's consideration of the issue.

Interpretation of a substantive provision of an income or estate tax treaty

(6) Statement regarding interpretation of a substantive provision of an income or estate tax treaty. If the request involves the interpretation of a substantive provision of an income or estate tax treaty, the request must state whether-

(a) the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue
for the taxpayer, a related taxpayer within the meaning of § 267, or a member of an affiliated
group of which the taxpayer is also a member within the meaning of § 1504, or any predecessor;

(b) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor 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

(c) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is being
considered by the competent authority of the treaty jurisdiction.

Letter from Bureau of
Indian Affairs relating to
certain letter ruling
requests

(7) Letter from Bureau of Indian Affairs relating to a letter ruling request for recognition
of Indian tribal government status or status as a political subdivision of an Indian tribal
government. To facilitate prompt action on a letter ruling request for recognition of Indian tribal
government status or status as a political subdivision of an Indian tribal government, the taxpayer
must submit with the letter ruling request a letter from the Department of the Interior, Bureau of
Indian Affairs ("BIA"), verifying that the tribe is recognized by BIA as an Indian tribe and that
the tribal government exercises governmental functions or that the political subdivision of the
Indian tribal government has been delegated substantial governmental functions. A letter ruling
request that does not contain this letter from BIA cannot be resolved until the Service obtains a
letter from BIA regarding the tribe's status.

The taxpayer should send a request to verify tribal status to the following address:

Branch of General Indian Legal Activity
Division of Indian Affairs
Office of the Solicitor
U.S. Department of the Interior
1849 C Street, NW
Washington, DC 20240

Statement of authorities
supporting taxpayer's
views

(8) Statement of supporting authorities. If the taxpayer advocates a particular conclusion, the
taxpayer must include an explanation of the grounds for that conclusion and the relevant
authorities to support it. Even if the taxpayer is not advocating a particular tax treatment of a
proposed transaction, the taxpayer must furnish views on the tax results of the proposed
transaction and a statement of relevant authorities to support those views.

In all events, the request must include a statement of whether the law in connection with the
request is uncertain and whether the issue is adequately addressed by relevant authorities.

Statement of authorities
contrary to taxpayer's
views

(9) Statement of contrary authorities. To avoid a delay in the ruling process, contrary
authorities should be brought to the attention of the Service at the earliest possible opportunity.
If there are significant contrary authorities, it is usually helpful to discuss them in a pre-
submission conference prior to submitting the ruling request. See section 10.07 of this revenue
procedure regarding pre-submission conferences. The taxpayer is strongly encouraged to inform
the Service about, and discuss the implications of, any authority believed to be contrary to the
position advanced, such as legislation, tax treaties, court decisions, regulations, notices, revenue
rulings, revenue procedures, or announcements. If the taxpayer determines that there are no
contrary authorities, a statement in the request to this effect should be included. If the taxpayer
does not furnish either contrary authorities or a statement that none exist, the Service in complex
cases or those presenting difficult or novel issues may request submission of contrary authorities
or a statement that none exist. Failure to comply with this request may result in the Service's
refusal to issue a letter ruling or determination letter.

The taxpayer's identification of and discussion of contrary authorities generally will enable
Service personnel more quickly to understand the issue and relevant authorities. Having this
information should make research more efficient and lead to earlier action by the Service. If the
taxpayer does not disclose and distinguish significant contrary authorities, the Service may need
to request additional information, which will delay action on the request.

Sec. 7.01
January 2, 2014

## Statement identifying pending legislation

Deletion statement
required by § 6110

(10) Statement identifying pending legislation. When filing the request, the taxpayer must
identify any pending legislation that may affect the proposed transaction. In addition, the
taxpayer must notify the Service if any such legislation is introduced after the request is filed
but before a letter ruling or determination letter is issued.

(11) Statement identifying information to be deleted from public inspection copy of letter
ruling or determination letter. The text of letter rulings and determination letters is open to
public inspection under § 6110. The Service makes deletions from the text before it is made
available for inspection. To help the Service make the deletions required by § 6110(c), a request
for a letter ruling or determination letter must be accompanied by a statement indicating the
deletions desired. If the deletion statement is not submitted with the request, a Service represen-
tative will tell the taxpayer that the request will be closed if the Service does not receive the
deletion statement within 21 calendar days. See section 8.05 of this revenue procedure.

(a) Format of deletion statement. A taxpayer who wants only names, addresses, and
identifying numbers to be deleted should state this in the deletion statement. If the taxpayer wants
more information deleted, the deletion statement must be accompanied by a copy of the request
and supporting documents on which the taxpayer should bracket the material to be deleted. The
deletion statement must include the statutory basis under § 6110(c) for each proposed deletion.

If the taxpayer decides to ask for additional deletions before the letter ruling or determination
letter is issued, additional deletion statements may be submitted.

(b) Location of deletion statement. The deletion statement must be made in a separate
document from the request for a letter ruling or determination letter and must be placed on top
of the request.

(c) Signature. The deletion statement must be signed and dated by the taxpayer or the
taxpayer's authorized representative. A stamped signature or faxed signature is not permitted.

(d) Additional information. The taxpayer should follow the same procedures of this section
7.01(11) to propose deletions from any additional information submitted after the initial request.
An additional deletion statement is not required with each submission of additional information
if the taxpayer's initial deletion statement requests that only names, addresses, and identifying
numbers are to be deleted and the taxpayer wants only the same information deleted from the
additional information.

(e) Taxpayer may protest deletions not made. After receiving from the Service the notice
under § 6110(f)(1) of intention to disclose the letter ruling or determination letter (including a
copy of the version proposed to be open to public inspection and notation of third-party
communications under § 6110(d)), the taxpayer may protest the disclosure of certain information
in the letter ruling or determination letter. The taxpayer must send a written statement to the
Service office indicated on the notice of intention to disclose, within 20 calendar days of the date
the notice of intention to disclose is mailed to the taxpayer. The statement must identify those
deletions that the Service has not made and that the taxpayer believes should have been made. The
taxpayer must also submit a copy of the version of the letter ruling or determination letter and
bracket the proposed deletions that have not been made by the Service. Generally, the Service will
not consider deleting any material that the taxpayer did not propose to be deleted before the letter
ruling or determination letter was issued.

Within 20 calendar days after the Service receives the response to the notice under § 6110(f)(1),
the Service will mail to the taxpayer its final administrative conclusion regarding the deletions to
be made. The taxpayer does not have the right to a conference to resolve any disagreements
concerning material to be deleted from the text of the letter ruling or determination letter. These
matters may, however, be taken up at any conference that is otherwise scheduled regarding the
request.

(f) Taxpayer may request delay of public inspection. After receiving the notice of intention
to disclose under § 6110(f)(1), but no later than 60 calendar days after the date of the notice, the
taxpayer may send a written request for delay of public inspection under either § 6110(g)(3) or
(4). The request for delay must be sent to the Service office indicated on the notice of intention
to disclose. A request for delay under § 6110(g)(3) must contain the date on which it is expected
that the underlying transaction will be completed. The request for delay under § 6110(g)(4) must
contain a statement from which the Commissioner of Internal Revenue may determine whether
there are good reasons for the continued delay.

Signature on request

(12) Signature by taxpayer or authorized representative. The request for a letter ruling
or determination letter must be signed and dated by the taxpayer or the taxpayer's authorized
representative. A stamped signature or faxed signature is not permitted.

Authorized representatives

(13)

(a) Authorized representatives. To sign the request or to appear before the Service in
connection with the request, the taxpayer's authorized representative must be (for rules on who
may practice before the Service, see Treasury Department Circular No. 230, 31 C.F.R. part 10):

(1) An attorney who is a member in good standing of the bar of the highest court of any state,
possession, territory, commonwealth, or the District of Columbia and who is not currently under
suspension or disbarment from practice before the Service. He or she must file a written
declaration with the Service showing current qualification as an attorney and current authorization
to represent the taxpayer;

(2) A certified public accountant who is duly qualified to practice in any state, possession,
territory, commonwealth, or the District of Columbia and who is not currently under suspension
or disbarment from practice before the Service. He or she must file a written declaration with the
Service showing current qualification as a certified public accountant and current authorization to
represent the taxpayer;

(3) An enrolled agent is a person who is currently enrolled as an agent to practice before the
Service and who is not currently under suspension or disbarment from practice before the Service.
He or she must file a written declaration with the Service showing current enrollment and
authorization to represent the taxpayer. The enrollment number must be included in the decla-
ration;

(4) An enrolled actuary is an individual currently enrolled as an actuary by the Joint Board for
the Enrollment of Actuaries pursuant to 29 U.S.C. § 1242 and who is not currently under
suspension or disbarment from practice before the Service. He or she must file a written
declaration with the Service showing current qualification as an enrolled actuary and current
authorization to represent the taxpayer. Practice before the Service as an enrolled actuary is
limited to representation with respect to issues involving §§ 401, 403(a), 404, 412, 413, 414, 419,
419A, 420, 430, 431, 432, 436, 4971, 4972, 4976, 4980, 6057, 6058, 6059, 6652(e), 6652(f),
6692, and 7805(b); former § 405; and 29 U.S.C. § 1083;

(5) An enrolled retirement plan agent is an individual currently enrolled as a retirement plan
agent who is not currently under suspension or disbarment from practice before the Service. He
or she must file a written declaration as an enrolled retirement plan agent and current authori-
zation to represent the taxpayer. Practice before the Service as an enrolled retirement plan agent
is limited to representation with respect to issues involving the following programs: Employee
Plans Determination Letter program; Employee Plans Compliance Resolution System; and
Employee Plans Master and Prototype and Volume Submitter program. Enrolled retirement plan
agents also are generally permitted to represent taxpayers with respect to IRS forms under 5300
and 5500 series, which are filed by retirement plans and plans sponsors, but not with respect to
actuarial forms and schedules; or

(6) Any other person, including a foreign representative, who has received a "Letter of
Authorization" from the Director of the Office of Professional Responsibility under section

Sec. 7.01

10.7(d) of Treasury Department Circular No. 230. A person may make a written request for a
"Letter of Authorization" to: Office of Professional Responsibility, SE:OPR, Internal Revenue
Service, 1111 Constitution Ave., NW, Washington, DC 20224. Section 10.7(d) of Circular No.
230 authorizes the Commissioner to allow an individual who is not otherwise eligible to practice
before the Service to represent another person in a particular matter.

(b) A regular full-time employee representing his or her employer; a general partner repre-
senting his or her partnership; a bona fide officer representing his or her corporation, association,
or organized group; a regular full-time employee representing a trust, receivership, guardianship,
or estate; or an individual representing an immediate family member may sign the request or
appear before the Service in connection with the request.

A taxpayer may be required to file a Form 8821, Tax Information Authorization, for certain
employees not authorized to represent the taxpayer to receive taxpayer information from the
Service.

(c) Tax return preparers, including registered tax return preparers, that are not described in
subsections (a) and (b) of this section may not sign the request, appear before the Service, or
represent a taxpayer in connection with a request for a letter ruling or a determination letter. See
section 10.3(f)(3) of Treasury Department Circular No. 230.

(d) A foreign representative, other than a person referred to in subsections (a) and (b) of this
section, is not authorized to practice before the Service within the United States and must
withdraw from representing a taxpayer in a request for a letter ruling or a determination letter. In
this situation, the nonresident alien or foreign entity must submit the request for a letter ruling or
a determination letter on the individual's or the entity's own behalf or through a person referred
to in subsections (a) and (b) of this section.

Power of attorney and
declaration of
representative

(14) Power of attorney and declaration of representative. Form 2848, Power of Attorney
and Declaration of Representative, should be used to provide the representative's authority (Part
I of Form 2848, Power of Attorney) and the representative's qualification (Part II of Form 2848,
Declaration of Representative). The name of the person signing Part I of Form 2848 should also
be typed or printed on this form. A stamped signature is not permitted. An original, a copy, or fax
of the power of attorney is acceptable so long as its authenticity is not reasonably disputed. For
additional information regarding the power of attorney form, see section 7.02(2) of this revenue
procedure.

The taxpayer's authorized representative, whether or not enrolled, must comply with Treasury
Department Circular No. 230, which provides the rules for practice before the Service. In
situations where the Service believes that the taxpayer's representative is not in compliance with
Circular 230, the Service will bring the matter to the attention of the Office of Professional
Responsibility.

Penalties of perjury
statement

(15) Penalties of perjury statement.

(a) Format of penalties of perjury statement. A request for a letter ruling or determination
letter and any change in the request submitted at a later time must be accompanied by the
following declaration: "Under penalties of perjury, I declare that I have examined [Insert, as
appropriate: this request or this modification to the request], including accompanying
documents, and, to the best of my knowledge and belief, [Insert, as appropriate: the request
or the modification] contains all the relevant facts relating to the request, and such facts are
true, correct, and complete."

See section 8.05(4) of this revenue procedure for the penalties of perjury statement applicable
for submissions of additional information.

(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer, not the
taxpayer's representative. A stamped signature or faxed signature is not permitted.

The person who signs for a corporate taxpayer must be an officer of the corporate taxpayer who has personal knowledge of the facts and whose duties are not limited to obtaining a letter ruling or determination letter from the Service. If the corporate taxpayer is a member of an affiliated group filing consolidated returns, a penalties of perjury statement must also be signed and submitted by an officer of the common parent of the group. The person signing for a trust, a state law partnership, or a limited liability company must be, respectively, a trustee, general partner, or member-manager who has personal knowledge of the facts.

Number of copies of request to be submitted

(16) Number of copies of request to be submitted. Generally, a taxpayer needs to submit the original and one copy of the request for a letter ruling or determination letter. If more than one issue is presented in the letter ruling request, the taxpayer is encouraged to submit additional copies of the request. Further, the original and two copies of the request for a letter ruling or determination letter are required if-

(a) the taxpayer is requesting separate letter rulings or determination letters on multiple issues as explained later under section 7.02(1) of this revenue procedure;

(b) the taxpayer is requesting deletions other than names, addresses, and identifying numbers, as explained in section 7.01(11)(a) of this revenue procedure (one copy is the request for the letter ruling or determination letter and the second copy is the deleted version of such request); or (c) a closing agreement (as defined in section 2.02 of this revenue procedure) is being requested on the issue presented.

Sample format for a letter ruling request Checklist

(17) Sample format for a letter ruling request. To assist a taxpayer or the taxpayer's representative in preparing a letter ruling request, a sample format for a letter ruling request is provided in Appendix B of this revenue procedure. This format is not required to be used. (18) Checklist for letter ruling requests. An Associate office will be able to respond more quickly to a taxpayer's letter ruling request if the request is carefully prepared and complete. The checklist in Appendix C of this revenue procedure is designed to assist taxpayers in preparing a request by reminding them of the essential information and documents to be furnished with the request. The checklist in Appendix C must be completed to the extent required by the instructions in the checklist, signed and dated by the taxpayer or the taxpayer's representative, and placed on top of the letter ruling request. If the checklist in Appendix C is not received, a branch representative will ask the taxpayer or the taxpayer's representative to submit the checklist; this may delay action on the letter ruling request.

For letter ruling requests on certain matters, specific checklists supplement the checklist in Appendix C. These checklists are listed in section 1 of Appendix E of this revenue procedure and must also be completed and placed on top of the letter ruling request along with the checklist in Appendix C. Taxpayers can obtain copies of the checklist in Appendix C by calling (202) 317-5221 (not a toll-free call) or by accessing this revenue procedure in Internal Revenue Bulletin 2014-1 on the IRS web site at www.irs.gov. Taxpayers can access this revenue procedure on the website by following the "News" link, the "IRS Guidance" link, and the "Internal Revenue Bulletins (after June 2003)" link to obtain Internal Revenue Bulletin 2014-1. A copy of this checklist may be used.

Additional procedural information required with request

.02

Multiple issues

(1) To request separate letter rulings for multiple issues in a single situation. If more than one issue is presented in a request for a letter ruling, the Associate office generally will issue a

Sec. 7.02
January 2, 2014

single letter ruling covering all the issues. If the taxpayer requests separate letter rulings on any
of the issues (because, for example, one letter ruling is needed sooner than another), the Associate
office usually will comply with the request unless doing so is not feasible or not in the best interest
of the Service. A taxpayer who wants separate letter rulings on multiple issues should make this
clear in the request and submit the original and two copies of the request. See section 15.06(3)
regarding whether a single user fee will be charged.

In issuing each letter ruling, the Associate office will state that it has issued separate letter
rulings or that requests for other letter rulings are pending.

(2) Power of attorney used to indicate recipient or recipients of a copy or copies of a letter
ruling or a determination letter. Once the Service signs the letter ruling or determination letter,
it will send the original to the taxpayer. The Service will not send the original letter ruling or
determination letter to the taxpayer's representative.

Power of attorney used to
indicate recipient of a copy
or copies of a letter ruling
or a determination letter

At the taxpayer's request, the Service will send one copy of the letter ruling or determination
letter to up to two authorized representatives. At the discretion of the Service, the Service may
provide a copy of the letter ruling or determination letter to up to two authorized representatives,
even though the taxpayer did not request that the Service send a copy of notices and communi-
cations to the taxpayer's representatives. Taxpayers that use Form 2848, Power of Attorney and
Declaration of Representative, to designate representatives, may request that copies of notices
and communications be sent to the representatives listed at Line 2 by checking the corresponding
box on Line 2. Taxpayers may use Line 5 of Form 2848 to advise the Service that a copy of the
letter ruling or determination letter should not be sent to the taxpayer's representative(s). If no box
is checked on Line 2 and the taxpayer does not indicate otherwise on Line 5, the Service may in
its discretion provide a copy of the letter ruling or determination letter to up to two authorized
representatives.

"Two-part" letter ruling
requests

(3) To request a particular conclusion on a proposed transaction. A taxpayer who requests
a particular conclusion on a proposed transaction may make the request for a letter ruling in two
parts. This type of request is referred to as a "two-part" letter ruling request. The first part must
include the complete statement of facts and related documents described in section 7.01 of this
revenue procedure. The second part must include a summary statement of the facts the taxpayer
believes to be controlling in reaching the conclusion requested.

If the Associate office accepts the taxpayer's statement of controlling facts, it will base its letter
ruling on these facts. Ordinarily, this statement will be incorporated into the letter ruling. The
Associate office reserves the right to rule on the basis of a more complete statement of the facts
and to seek more information in developing the facts and restating them.

A taxpayer who chooses this two-part procedure has all the rights and responsibilities provided
in this revenue procedure.

Taxpayers may not use the two-part procedure if it is inconsistent with other procedures, such
as those dealing with requests for permission to change accounting methods or periods, appli-
cations for recognition of exempt status under § 521, or requests for rulings on employment tax
status.

After the Associate office has resolved the issues presented by a letter ruling request, the
Associate office representative may request that the taxpayer submit a proposed draft of the letter
ruling to expedite the issuance of the ruling. See section 8.07 of this revenue procedure.

Expedited handling

(4) To request expedited handling. The Service ordinarily processes requests for letter rulings
and determination letters in order of the date received. Expedited handling means that a request
is processed ahead of requests received before it. Expedited handling is granted only in rare and
unusual cases, both out of fairness to other taxpayers and because the Service seeks to process all
requests as expeditiously as possible and to give appropriate deference to normal business
exigencies in all cases not involving expedited handling.

A taxpayer with a compelling need to have a request processed ahead of requests received
before it may request expedited handling. This request must explain in detail the need for
expedited handling. The request for expedited handling must be made in writing, preferably in a
separate letter included with the request for the letter ruling or determination letter or provided
soon after its filing. If the request for expedited handling is contained in the letter requesting the
letter ruling or determination letter, the letter should state at the top of the first page "Expedited
Handling Is Requested. See page _of this letter."

A request for expedited handling will not be forwarded to a branch for action until the check
for the user fee is received.

Whether a request for expedited handling will be granted is within the Service's discretion. The
Service may grant the request when a factor outside a taxpayer's control creates a real business
need to obtain a letter ruling or determination letter before a certain date to avoid serious business
consequences. Examples include situations in which a court or governmental agency has imposed
a specific deadline for the completion of a transaction, or where a transaction must be completed
expeditiously to avoid an imminent business emergency (such as the hostile takeover of a
corporate taxpayer), provided that the taxpayer can demonstrate that the deadline or business
emergency, and the need for expedited handling, resulted from circumstances that could not
reasonably have been anticipated or controlled by the taxpayer. To qualify for expedited handling
in such situations, the taxpayer must also demonstrate that the taxpayer submitted the request as
promptly as possible after becoming aware of the deadline or emergency. The extent to which the
letter ruling or determination letter request complies with all of the applicable requirements of this
revenue procedure, and fully and clearly presents the issues, is a factor in determining whether
expedited treatment will be granted. When the Service agrees to process a request out of order,
it cannot give assurance that any letter ruling or determination letter will be processed by the date
requested.

The scheduling of a closing date for a transaction or a meeting of the board of directors or
shareholders of a corporation, without regard for the time it may take to obtain a letter ruling or
determination letter, will not be considered a sufficient reason to process a request ahead of its
regular order. Also, the possible effect of fluctuation in the market price of stocks on a transaction
will not be considered a sufficient reason to process a request out of order.

Because most requests for letter rulings and determination letters cannot be processed out of
order, the Service urges all taxpayers to submit their requests well in advance of the contemplated
transaction. In addition, to facilitate prompt action on letter ruling requests, taxpayers are
encouraged to ensure that their initial submissions comply with all of the requirements of this
revenue procedure (including the requirements of other applicable guidelines set forth in Appen-
dix E of this revenue procedure), to prepare "two-part" requests described in section 7.02(3) of
this revenue procedure when possible, and to promptly provide any additional information
requested by the Service.

Fax to taxpayer or
taxpayer's authorized
representative of any
document related to letter
ruling request

(5) To request the receipt of any document related to letter ruling request by fax. If the
taxpayer so requests, the Associate office may fax to the taxpayer or the taxpayer's authorized
representative a copy of any document related to the letter ruling request (for example, the letter
ruling itself or a request for additional information).

A request to fax to the taxpayer or the taxpayer's authorized representative a copy of any
document related to the letter ruling request must be made in writing, preferably as part of the
original request for the letter ruling. The request may be submitted at a later date, but it must be
received prior to the mailing of correspondence other than the letter ruling and prior to the signing
of the letter ruling. The request must contain the fax number of the taxpayer or the taxpayer's
authorized representative to whom the document is to be faxed.

A document other than the letter ruling will be faxed by a branch representative. The copy of
the letter ruling may be faxed by either a branch representative or the Disclosure and Litigation
Support Branch of the Legal Processing Division of the Office of Associate Chief Counsel

Sec. 7.02
January 2, 2014

(Procedure and Administration) (CC:PA:LPD:DLS). For purposes of § 301.6110-2(h), however,
a letter ruling is not issued until the ruling is mailed.

Requesting a conference

(6) To request a conference. A taxpayer who wants to have a conference on the issues involved in a request for a letter ruling should indicate this in writing when filing the request or soon thereafter. See sections 10.01, 10.02, and 11.11(2) of this revenue procedure.

Address to which to send

.03

request for letter ruling or determination letter

(1) Request for letter ruling. Original letter ruling requests must be sent to the appropriate Associate office. The packages should be marked RULING REQUEST SUBMISSION.

(a) If a private delivery service is not used, requests for letter rulings should be sent to the
following address:

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

(b) Requests for letter rulings may also be hand delivered between the hours of 8:00 a.m. and
4:00 p.m. to the courier's desk at the loading dock (behind the 12th Street security station) of 1111
Constitution Avenue, NW, Washington, DC. A receipt will be given at the courier's desk. The
package should be addressed to:

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

(2) Request for determination letter.

(a) Taxpayers under the jurisdiction of LB&I should send a request for a determination letter
to the following address:

Internal Revenue Service
Large Business and International Division
PreFiling and Technical Guidance
SE:LB:PFTG, Mint Building
1111 Constitution Ave., NW
Washington, DC 20224

(b) SB/SE and W&I taxpayers should send requests for determination letters to the appropriate
SB/SE office listed in Appendix D of this revenue procedure.

(c) For a determination letter under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division, see Rev. Proc. 2014-4 and Rev. Proc. 2014-6, this Bulletin.

Pending letter ruling requests

.04

(1) Circumstances under which the taxpayer with a pending letter ruling request must notify the Associate office. The taxpayer must notify the Associate office if, after the letter ruling request is filed but before a letter ruling is issued, the taxpayer knows that- (a) a Field office has started an examination of the issue or the identical issue on an earlier year's return;

(b) in the case of a § 301.9100 request, a Field office has started an examination of the return for the taxable year in which an election should have been made or any taxable year that would have been affected by the election had it been timely made. See § 301.9100-3(e)(4)(i) and section 5.03(3) of this revenue procedure;

(d) another letter ruling request (including an application for change in method of accounting), involving the same or similar issue as that pending with the Service, has been submitted by the taxpayer or a related party within the meaning of § 267 or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504.

(2) Taxpayer must notify the Associate office if a return is filed and must attach the request to the return. If the taxpayer files a return before a letter ruling is received from the Associate office concerning an issue in the return, the taxpayer must notify the Associate office that the return has been filed. The taxpayer must also attach a copy of the letter ruling request to the return to alert the Field office and avoid premature field action on the issue. Taxpayers filing their returns electronically may satisfy this requirement by attaching to their return a statement providing the date of the letter ruling request and the control number of the letter ruling. If, under the limited circumstances permitted in section 5 of this revenue procedure, the taxpayer requests a letter ruling after the return is filed, but before the return is examined, the taxpayer must notify the Associate office that the return has been filed. The taxpayer must also notify the Field office having jurisdiction over the return and attach a copy of the letter ruling request to the notification to alert the Field office and avoid premature field action on the issue. This section 7.04 also applies to pending requests for a closing agreement on a transaction for which a letter ruling is not requested or issued.

For purposes of this section 7.04, the term "return" includes an original return, amended return, or claim for refund.

When to attach letter ruling or determination letter to return

.05 A taxpayer who, before filing a return, receives a letter ruling or determination letter about any transaction that has been consummated and that is relevant to the return being filed must attach to the return a copy of the letter ruling or determination letter. Taxpayers filing their returns electronically may satisfy this requirement by attaching a statement to their return that provides the date and control number of the letter ruling or determination letter. For purposes of this section 7.05, the term "return" includes an original return, amended return, or claim for refund.

How to check on status of request for letter ruling or determination letter

.06 The taxpayer or the taxpayer's authorized representative may obtain information regarding the status of a request for a letter ruling or determination letter by calling the person whose name and telephone number are shown on the acknowledgment of receipt of the request or, in the case of a request for a letter ruling, the appropriate branch representative who contacts the taxpayer as explained in section 8.02 of this revenue procedure.

## Request for letter ruling or determination letter may be withdrawn or Associate office may decline to issue letter ruling

.07

(1) In general. A taxpayer may withdraw a request for a letter ruling or determination letter
at any time before the letter ruling or determination letter is signed by the Service. Correspon-
dence and exhibits related to a request that is withdrawn or related to a letter ruling request for
which an Associate office declines to issue a letter ruling will not be returned to the taxpayer. See
section 7.01(2)(a) of this revenue procedure. In appropriate cases, an Associate office may publish
its conclusions in a revenue ruling or revenue procedure.

(2) Notification of appropriate Service official.

(a) Letter ruling requests. If a taxpayer withdraws a letter ruling request or if the Associate
office declines to issue a letter ruling, the Associate office generally will notify, by memorandum,
the appropriate Service official in the operating division that has examination jurisdiction of the
taxpayer's tax return. For taxpayers under the jurisdiction of the Division Counsel/Associate
Chief Counsel (Large Business & International), the Associate office will also send a copy of the
memorandum to the Director of Pre-Filing & Technical Guidance. In doing so, the Associate
office may give the Service official its views on the issues in the request for consideration in any
later examination of the return. This section 7.07(2)(a) generally does not apply if the taxpayer
withdraws the letter ruling request and submits a written statement that the transaction has been,
or is being, abandoned and if the Associate office has not already formed an adverse opinion. See
section 7.07(1) of this revenue procedure.

(b) Notification of Service official may constitute Chief Counsel Advice. If the memoran-
dum to the Service official referred to in paragraph (a) of this section 7.07(2) provides more than
the fact that the request was withdrawn and that the Associate office was tentatively adverse, or
more than the fact that the Associate office declines to issue a letter ruling, the memorandum may
constitute Chief Counsel Advice, as defined in § 6110(i)(1), and may be subject to disclosure
under § 6110.

(3) Refund of user fee. Ordinarily, the user fee will not be returned for a letter ruling request
that is withdrawn. If the Associate office declines to issue a letter ruling on all of the issues in the
request, the user fee will be returned. If the Associate office issues a letter ruling on some, but not
all, of the issues, the user fee will not be returned. See section 15.10 of this revenue procedure for
additional information regarding the refund of user fees.

SECTION 8. HOW DO
THE ASSOCIATE
OFFICES HANDLE
LETTER RULING
REQUESTS?

The Associate offices will issue letter rulings on the matters and under the circumstances
explained in sections 3 and 5 of this revenue procedure and in the manner explained in this section
and section 11 of this revenue procedure. See section 9 of this revenue procedure for procedures
for change in method of accounting requests.

.01 All requests for letter rulings will be received and initially controlled by the Docket,
Records, and User Fee Branch of the Legal Processing Division of the Associate Chief Counsel
(Procedure and Administration) (CC:PA:LPD:DRU). That office will process the incoming
documents and the user fee, and it will forward the file to the appropriate Associate office for
assignment to a branch that has jurisdiction over the specific issue involved in the request.

Docket, Records, and User
Fee Branch receives, ini-
tially controls, and refers
the request to the appro-
priate Associate office

Branch representative of
the Associate office con-
tacts taxpayer within 21
calendar days

.02 Within 21 calendar days after a letter ruling request has been received in the branch of the
Associate office that has jurisdiction over the issue, a representative of the branch will contact the
taxpayer or, if the request includes a properly executed power of attorney, the authorized
representative, unless the power of attorney provides otherwise. During such contact, the branch
representative will discuss the procedural issues in the letter ruling request. If the case is complex
or a number of issues are involved, it may not be possible for the branch representative to discuss
the substantive issues during this initial contact. When possible, for each issue within the branch's
jurisdiction, the branch representative will tell the taxpayer-

(1) whether the branch representative will recommend that the Associate office rule as the
taxpayer requested, rule adversely on the matter, or not rule;

(2) whether the taxpayer should submit additional information to enable the Associate office to
rule on the matter;

(3) whether the letter ruling complies with all of the provisions of this revenue procedure, and
if not, which requirements have not been met; or

(4) whether, because of the nature of the transaction or the issue presented, a tentative
conclusion on the issue cannot be reached.

If the letter ruling request involves matters within the jurisdiction of more than one branch or
Associate office, a representative of the branch that received the original request will tell the
taxpayer within the initial 21 calendar days-

(1) that the matters within the jurisdiction of another branch or Associate office have been
referred to that branch or Associate office for consideration, and the date the referral was made,
and

(2) that a representative of that branch or Associate office will contact the taxpayer within 21
calendar days after receiving the referral to discuss informally the procedural and, to the extent
possible, the substantive issues in the request.

This section 8.02 applies to all matters except for cases involving a request for change in
method of accounting or accounting period and cases within the jurisdiction of the Associate
Chief Counsel (Financial Institutions and Products) concerning insurance issues requiring actu-
arial computations.

Determines if transaction
can be modified to obtain
favorable letter ruling

.03 If less than a fully favorable letter ruling is indicated, the branch representative will tell the
taxpayer whether minor changes in the transaction or adherence to certain published positions
would bring about a favorable ruling. The branch representative may also tell the taxpayer the
facts that must be furnished in a document to comply with Service requirements. The branch
representative will not suggest precise changes that would materially alter the form of the
proposed transaction or materially alter a taxpayer's proposed accounting period.

If, at the end of this discussion, the branch representative determines that a meeting in the
Associate office would be more helpful to develop or exchange information, a meeting will be
offered and an early meeting date arranged. When offered, this meeting is in addition to the
taxpayer's conference of right that is described in section 10.02 of this revenue procedure.

Not bound by informal
opinion expressed

.04 The Service will not be bound by the informal opinion expressed by the branch represen-
tative or any other Service representative, and such an opinion cannot be relied upon as a basis
for obtaining retroactive relief under the provisions of § 7805(b).

May request additional
information
Must be submitted within
21 calendar days

.05

(1) Additional information must be submitted within 21 calendar days. If the request lacks
essential information, which may include additional information needed to satisfy the procedural
requirements of this revenue procedure as well as substantive changes to transactions or docu-
ments needed from the taxpayer, the branch representative will request such information during
the initial or subsequent contacts with the taxpayer or its authorized representative. The repre-
sentative will inform the taxpayer or its authorized representative that the request will be closed
if the Associate office does not receive the requested information within 21 calendar days from
the date of the request unless an extension of time is granted. To facilitate prompt action on letter
ruling requests, taxpayers may request that the Associate office request additional information by
fax. See section 7.02(5) of this revenue procedure.

Material facts furnished to the Associate office by telephone or fax, or orally at a conference,
must be promptly confirmed by letter to the Associate office. This confirmation, and any
additional information requested by the Associate office that is not part of the information
requested during the initial contact, must be furnished within 21 calendar days from the date the
Associate office makes the request.

### Extension of reply period if justified and approved

(2) Extension of reply period if justified and approved. The Service will grant an extension
of the 21-day period for providing additional information only if the extension is justified in
writing by the taxpayer and approved by the branch reviewer. A request for an extension should
be submitted before the end of the 21-day period. If unusual circumstances close to the end of the
21-day period make a written request impractical, the taxpayer should notify the Associate office
within the 21-day period that there is a problem and that the written request for extension will be
provided shortly. The taxpayer will be told promptly of the approval or denial of the requested
extension. If the extension request is denied, there is no right of appeal.

Letter ruling request
closed if the taxpayer does
not submit additional in-
formation

(3) Letter ruling request closed if the taxpayer does not submit additional information. If
the taxpayer does not submit the information requested during the initial or subsequent contacts
within the time provided, the letter ruling request will be closed and the taxpayer will be notified
in writing. If the information is received after the request is closed, the request will be reopened
and treated as a new request as of the date the information is received. The taxpayer must pay
another user fee before the case can be reopened.

Penalties of perjury state-
ment for additional infor-
mation

(4) Penalties of perjury statement. Additional information submitted to the Service must be
accompanied by the following declaration: "Under penalties of perjury, I declare that I have
examined this information, including accompanying documents, and, to the best of my
knowledge and belief, the information contains all the relevant facts relating to the request
for the information, and such facts are true, correct, and complete." This declaration must be
signed in accordance with the requirements in section 7.01(15)(b) of this revenue procedure.

Faxing request and addi-
tional information

(5) Faxing request and additional information. To facilitate prompt action on letter ruling
requests, taxpayers may request that the Associate office request additional information by fax.
See section 7.02(5) of this revenue procedure. Taxpayers may also submit additional information
by fax as soon as the information is available. The Associate office representative who requests
additional information can provide a fax number to which the information can be faxed. The
original of the faxed material and a signed penalties of perjury statement must be mailed or
delivered to the Associate office.

Address to which to send
additional information

(6) Address to which to send additional information

(a) If a private delivery service is not used, the additional information should be sent to:

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Associate office
representative who requested
the information]
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

For cases involving a request for change in method of accounting or period, see section 9.05
of this revenue procedure for the address to which to send additional information.

(b) If a private delivery service is used, the additional information for all cases should be sent to:

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Associate office
representative who requested
the information]
1111 Constitution Ave., NW
Washington, DC 20224

## Identifying information included in additional in- formation

## Number of copies of addi- tional information to be submitted

Near the completion of the
ruling process, advises the
taxpayer of conclusions
and, if the Associate office
will rule adversely, offers
the taxpayer the opportu-
nity to withdraw the letter
ruling request

May request that taxpayer
submit draft proposed let-
ter ruling near the comple-
tion of the ruling process

(7) Identifying information. For all cases, the additional information should include the
taxpayer's name and the case control number and the name, office symbols, and room number of
the Associate office representative who requested the information. The Associate office repre-
sentative can provide the latter information to the taxpayer.

(8) Number of copies. A taxpayer only needs to submit one copy of the additional information
unless the Associate office requests additional copies.

.06 Generally, after the conference of right is held but before the letter ruling is issued, the
branch representative will orally notify the taxpayer or the taxpayer's representative of the
Associate office's conclusions. See section 10 of this revenue procedure for a discussion of
conferences of right. If the Associate office is going to rule adversely, the taxpayer will be offered
the opportunity to withdraw the letter ruling request. If, within ten calendar days of the
notification by the branch representative, the taxpayer or the taxpayer's representative does not
notify the branch representative that the taxpayer wishes to withdraw the ruling request, the
adverse letter ruling will be issued unless an extension is granted. The user fee will not be
refunded for a letter ruling request that is withdrawn. See section 15.10(1)(a) of this revenue
procedure.

.07 To accelerate the issuance of letter rulings, in appropriate cases near the completion of the
ruling process, the Associate office representative may request that the taxpayer or the taxpayer's
representative submit a proposed draft of the letter ruling. Such draft would be based on the
discussions of the issues between the representative and the taxpayer or the taxpayer's represen-
tative. The taxpayer is not required to prepare a draft letter ruling to receive a letter ruling.

The format of the submission should be discussed with the Associate office representative who
requests the draft letter ruling. The representative usually can provide a sample format of a letter
ruling and will discuss with the taxpayer or the taxpayer's representative the facts, analysis, and
letter ruling language to be included.

Taxpayers are encouraged to submit this draft in a printed copy that is in a computer scannable
format. The printed copy will become part of the permanent files of the Associate office. The
printed copy should be sent to the same address as any additional information and should contain
in the transmittal the information that should be included with any additional information (for
example, a penalties of perjury statement is required). See section 8.05(4) of this revenue
procedure.

Issues separate letter rul-
ings for substantially iden-
tical letter rulings, but gen-
erally issues a single letter
ruling for related
§ 301.9100 letter rulings

.08

(1) Substantially identical letter rulings. For letter ruling requests qualifying for the user fee
provided in paragraph (A)(5)(a) of Appendix A of this revenue procedure for substantially
identical letter rulings, a separate letter ruling generally will be issued for each entity with a
common member or sponsor, or for each member of a common entity.

# (2) Related § 301.9100 letter rulings.

(a) For a § 301.9100 letter ruling request for an extension of time to file a Form 3115 qualifying
under section 15.07(4) for the user fee provided in paragraph (A)(5)(d) of Appendix A of this
revenue procedure for an identical change in method of accounting, the Associate office generally
will issue a single letter on behalf of all applicants on Form 3115 that are the subject of the
request.

(b) For a § 301.9100-3 letter ruling request for an extension of time to file an entity
classification election for multiple entities qualifying under section 15.07(2) for the user fee
provided in paragraph (A)(5)(a) of Appendix A of this revenue procedure, the Associate office
generally will issue a single letter on behalf of all entities that are the subject of the request. The
taxpayer may request that separate letters be issued to each entity that are the subject of the
request. See generally section 5.03 of this revenue procedure.

Sec. 8.08
January 2, 2014

Sends a copy of the letter
ruling to appropriate Ser-
vice official

SECTION 9. WHAT ARE
THE SPECIFIC AND AD-
DITIONAL PROCE-
DURES FOR A REQUEST
FOR A CHANGE IN
METHOD OF ACCOUNT-
ING FROM THE ASSO-
CIATE OFFICES?

## Automatic and advance consent change in method of accounting requests

Automatic change in
method of accounting
under Rev. Proc. 2011-14
(or any successor), or other
automatic change request
procedures

.09 The Associate office will send a copy of the letter ruling, whether favorable or adverse, to
the appropriate Service official in the operating division that has examination jurisdiction of the
taxpayer's tax return.

This section provides the specific and additional procedures applicable to a request for a change
in method of accounting under Rev. Proc. 2011-14, 2011-4 I.R.B. 330 (or any successor), other
automatic change request procedures, or Rev. Proc. 97-27, 1997-1 C.B. 680, as amplified and
modified by Rev. Proc. 2002-19, 2002-1 C.B. 696; as amplified and clarified by Rev. Proc.
2002-54, 2002-2 C.B. 432; as modified by Rev. Proc. 2007-67, 2007-2 C.B. 1072, and 2011-14,
2011-4 I.R.B. 330; and as clarified and modified by Rev. Proc. 2009-39, 2009-38 I.R.B. 371.

A request for a change in method of accounting under Rev. Proc. 2011-14, other automatic
change request procedures, or Rev. Proc. 97-27 is a type of request for a letter ruling. See section
2.01 of this revenue procedure.

.01

(1) Automatic change in method of accounting. Certain changes in methods of accounting
may be made under automatic change request procedures. A change in method of accounting
provided for in an automatic change request procedure must be made using that procedure if the
taxpayer requesting the change is within the scope of the procedure and the change is an
automatic change for the requested year of the change. The Commissioner's consent to an
otherwise qualifying automatic change in method of accounting is granted only if the taxpayer
timely complies with the applicable automatic change request procedures. But see section 9.19 of
this revenue procedure concerning review by an Associate office and a Field office.

An application filed under Rev. Proc. 2011-14, 2011-4 I.R.B. 330, (or any successor) or other
automatic change request procedure and this revenue procedure is hereinafter referred to as an
"automatic change request." See section 9.22 of this revenue procedure for a list of automatic
change request procedures. See section 9.23 for a list of the sections and Appendices of this
revenue procedure in addition to this section 9 that apply to an automatic change request. No user
fee is required for a change made under an automatic change request procedure.

# Advance consent change in method of accounting

(2) Advance consent change in method of accounting. If a change in method of accounting
may not be made under an automatic change request procedure, the taxpayer may request an
advance consent letter ruling by filing a current Form 3115, Application for Change in Accounting
Method, under Rev. Proc. 97-27, 1997-1 C.B. 680, as amplified and modified by Rev. Proc.
2002-19, 2002-1 C.B. 696; as amplified and clarified by Rev. Proc. 2002-54, 2002-2 C.B. 432;
as modified by Rev. Proc. 2007-67, 2007-2 C.B. 1072, and Rev. Proc. 2011-14, 2011-4 I.R.B.
330; and as clarified and modified by Rev. Proc. 2009-39, 2009-38 I.R.B. 371 (or any succes-
sor); and this revenue procedure. A Form 3115 filed under Rev. Proc. 97-27 (or any successor)
and this revenue procedure is hereinafter referred to as an "advance consent Form 3115." A
taxpayer filing an advance consent Form 3115 must submit the required user fee with the
completed Form 3115. See section 15 and Appendix A of this revenue procedure for information
about user fees. See section 9.23 for a list of the sections and Appendices of this revenue
procedure in addition to this section 9 that apply to an advance consent Form 3115.

Ordinarily only one change
in method of accounting on
a Form 3115, Application
for Change in Accounting
Method, and a separate
Form 3115 for each tax-
payer and for each sepa-
rate and distinct trade or
business

## .02

Ordinarily, a taxpayer may request only one change in method of accounting on a Form 3115,
Application for Change in Accounting Method. If the taxpayer wants to request a change in
method of accounting for more than one unrelated item or submethod of accounting, the taxpayer
must submit a separate Form 3115 for each unrelated item or submethod, except in certain
situations in which the Service specifically permits certain unrelated changes to be included on a
single Form 3115. For an example of such a situation, see section 14.03 in the Appendix of Rev.
Proc. 2011-14, 2011-4 I.R.B. 330 or its successor.

Information required with a Form 3115

A separate Form 3115 (and, therefore, a separate user fee pursuant to section 15 and Appendix A of this revenue procedure) must be submitted for each taxpayer and each separate trade or business of a taxpayer, including a qualified subchapter S subsidiary (QSub) or a single-member limited liability company (single member LLC), requesting a change in method of accounting, except as specifically permitted or required in guidance published by the Service. See, for example, section 15.07(4) of this revenue procedure. .03

Facts and other informa- tion

(1) Facts and other information requested on Form 3115 and in applicable revenue procedures. In general, a taxpayer requesting a change in method of accounting must file a current Form 3115, unless the procedures applicable to the specific type of change in method of accounting do not require a Form 3115 to be submitted. To be eligible for approval of the requested change in method of accounting, the taxpayer must provide all information requested on the Form 3115 and in its instructions and in either Rev. Proc. 97-27 (or any successor), or the applicable automatic change request procedure. In addition, the taxpayer must provide all information requested in the applicable sections of this revenue procedure, including a detailed and complete description of the item being changed, the taxpay- er's present and proposed method for the item being changed, information regarding whether the taxpayer is under examination, or before Appeals or a Federal court, and a summary of the computation of the net § 481(a) adjustment, along with an explanation of the methodology used to determine the adjustment, sufficient to demonstrate that the (net) § 481(a) adjustment is computed correctly.

For an advance consent Form 3115, the taxpayer must also include a full explanation of the legal basis and relevant authorities supporting the proposed method, a detailed and complete description of the facts and explanation of how the law applies to the taxpayer's situation, a discussion of whether the law related to the request is uncertain or inadequately addresses the issue, a statement of the applicant's reasons for the proposed change, and copies of all documents related to the proposed change. The applicant must provide the requested information to be eligible for approval of the requested change in method of accounting. The taxpayer may be required to provide information specific to the requested change in method of accounting, such as an attached statement. The taxpayer must provide all information relevant to the requested change in method of accounting, even if not specifically requested, including an explanation of all material facts relevant to the requested change in method of accounting. See also sections 7.01(1) and 7.01(8) of this revenue procedure.

Statement of authorities contrary to taxpayer's views

(2) Statement of contrary authorities. For an advance consent Form 3115, the taxpayer is encouraged to inform the Associate office about, and discuss the implications of, any authority believed to be contrary to the proposed change in method of accounting, including legislation, court decisions, regulations, notices, revenue rulings, revenue procedures, or announcements. If the taxpayer does not furnish either contrary authorities or a statement that none exist, the Associate office may request submission of contrary authorities or a statement that none exist. Failure to comply with this request may result in the Associate office's refusal to issue a change in method of accounting letter ruling.

Documents

(3) Copies of all contracts, agreements, and other documents. True copies of all contracts, agreements, and other documents relevant to the requested change in method of accounting must be submitted with an advance consent Form 3115. Original documents should not be submitted because they become part of the Associate office's file and will not be returned.

Analysis of material facts

(4) Analysis of material facts. When submitting any document with a Form 3115 or in a supplemental letter, the taxpayer must explain and provide an analysis of all material facts in the document. The taxpayer may not merely incorporate the document by reference. The analysis of

Bulletin No. 2014-1

Sec. 9.03 35 January 2, 2014

the facts must include their bearing on the requested change in method of accounting and must specify the provisions that apply.

Same issue in an earlier return

(5) Information regarding whether same issue is in an earlier return. A Form 3115 must state whether, to the best of the knowledge of both the taxpayer and the taxpayer's representa- tives, any return of the taxpayer (or any return of a current or former consolidated group in which the taxpayer is or was a member) in which the taxpayer used the method of accounting being changed is under examination, before Appeals, or before a Federal court. See Rev. Proc. 2011-14, 2011-4 I.R.B. 330 (or any successor), and Rev. Proc. 97-27, 1997-1 C.B. 680, as amplified and modified by Rev. Proc. 2002-19, 2002-1 C.B. 696; as amplified and clarified by Rev. Proc. 2002-54, 2002-2 C.B. 432; as modified by Rev. Proc. 2007-67, 2007-2 C.B. 1072, and 2011-14, 2011-4 I.R.B. 330; and as clarified and modified by Rev. Proc. 2009-39.

Issue previously submitted or currently pending

(6) Statement regarding prior requests for a change in method of accounting and other pending requests.

(a) Other requests for a change in method of accounting within the past five years. A Form 3115 must state, to the best of the knowledge of both the taxpayer and the taxpayer's represen- tatives, whether the taxpayer or a related taxpayer within the meaning of § 267 or a member of a current or former affiliated group of which the taxpayer is or was a member within the meaning of § 1504 or a predecessor requested or made within the past five years (including the year of the requested change), or is currently filing, any request for a change in method of accounting. If the statement is affirmative, for each separate and distinct trade or business, give a description of each request and the year of change and whether consent was obtained. If any application was withdrawn, not perfected, or denied, or if a Consent Agreement was sent to the taxpayer but was not signed and returned to the Associate office, or if the change was not made in the requested year of change, give an explanation. (b) Any other pending request(s). A Form 3115 must state, to the best of the knowledge of both the taxpayer and the taxpayer's representatives, whether the taxpayer or a related taxpayer within the meaning of § 267 or a member of a current or former affiliated group of which the taxpayer is or was a member within the meaning of § 1504 or a predecessor currently have pending any request (including any concurrently filed request) for a letter ruling, a change in method of accounting, or technical advice. If the statement is affirmative, for each request, give the name(s) of the taxpayer, identification number(s), the type of request (letter ruling, request for change in method of accounting, or request for technical advice), and the specific issues in the request.

Statement identifying pending legislation

(7) Statement identifying pending legislation. At the time the taxpayer files an advance consent Form 3115, the taxpayer must identify any pending legislation that may affect the proposed change in method of accounting. The taxpayer also must notify the Associate office if any such legislation is introduced after the request is filed but before a change in method of accounting letter ruling is issued.

Authorized representatives

(8) Authorized representatives. To appear before the Service in connection with a request for a change in method of accounting, the taxpayer's authorized representative must be an attorney, a certified public accountant, an enrolled agent, an enrolled actuary, a person with a "Letter of Authorization," an employee, general partner, bona fide officer, administrator, trustee, etc., as described in section 7.01(13) of this revenue procedure.

Power of attorney and dec- laration of representative

(9) Power of attorney and declaration of representative. Any authorized representative, whether or not enrolled to practice, must comply with Treasury Department Circular No. 230, which provides the rules for practice before the Service, and the conference and practice requirements of the Statement of Procedural Rules, which provide the rules for representing a taxpayer before the Service. See section 7.01(14) of this revenue procedure. A taxpayer should use Form 2848, Power of Attorney and Declaration of Representative, to provide the representative's authority.

Tax Information Authoriza- tion

(10) Tax Information Authorization. A taxpayer may use Form 8821, Tax Information Autho- rization, to authorize an individual to receive a copy of the taxpayer's change in method of accounting letter ruling and other related correspondence. If the taxpayer wishes to authorize a corporation, firm, organization, or partnership to receive the correspondence, an individual, identified by either name or title, must be specified on the Form 8821. A Form 8821 does not authorize the taxpayer's appointee to advocate the taxpayer's position or to otherwise represent the taxpayer before the Service.

Penalties of perjury state- ment

(11) Penalties of perjury statement

(a) Format of penalties of perjury statement. A Form 3115, and any change to a Form 3115 submitted at a later time, must be accompanied by the following declaration: "Under penalties of perjury, I declare that I have examined this application, including accompanying schedules and statements, and to the best of my knowledge and belief, the application contains all the relevant facts relating to the application, and it is true, correct, and complete."

See section 9.08(3) of this revenue procedure for the penalties of perjury statement required for submissions of additional information.

(b) Signature by taxpayer. A Form 3115 must be signed by, or on behalf of, the taxpayer requesting the change by an individual with authority to bind the taxpayer in such matters. For example, an officer must sign on behalf of a corporation, a general partner on behalf of a state law partnership, a member-manager on behalf of a limited liability company, a trustee on behalf of a trust, or an individual taxpayer on behalf of a sole proprietorship. If the taxpayer is a member of a consolidated group, a Form 3115 should be submitted on behalf of the taxpayer by the common parent and must be signed by a duly authorized officer of the common parent. Refer to the signature requirements set forth in the instructions for the current Form 3115 regarding those who are to sign. See also section 8.08 of Rev. Proc. 97-27 and section 6.02(5) of Rev. Proc. 2011-14. A stamped signature or faxed signature is not permitted. (c) Signature by preparer. A declaration of preparer (other than the taxpayer) is based on all information of which the preparer has any knowledge.

Additional procedural in- formation required in cer- tain circumstances

.04

Recipients of original and copy of correspondence

(1) Recipients of original and copy of change in method of accounting correspondence. The Service will send the signed original of the change in method of accounting letter ruling and other related correspondence to the taxpayer, and copies to the taxpayer's representative, if so instructed on Form 2848. See section 7.02(2) of this revenue procedure for how to designate alternative routing of the copies of the letter ruling and other correspondence.

Expedited handling

(2) To request expedited handling. The Associate offices ordinarily process advance consent Forms 3115 in order of the date received. A taxpayer with a compelling need to have an advance consent Form 3115 processed on an expedited basis may request expedited handling. See section 7.02(4) of this revenue procedure for procedures regarding expedited handling.

Fax of any document to the taxpayer or taxpayer's authorized representative

(3) To receive the change in method of accounting letter ruling or any other correspon- dence related to a Form 3115 by fax. If the taxpayer wants a copy of the change in method of accounting letter ruling or any other correspondence related to a Form 3115, such as a request for additional information, faxed to the taxpayer or the taxpayer's authorized representative, the taxpayer must submit a written request to fax the letter ruling or related correspondence, preferably as part of the Form 3115. The request may be submitted at a later date, but it must be received prior to the mailing of correspondence other than the letter ruling and prior to the signing of the change in method of accounting letter ruling. The request to have correspondence relating to the Form 3115 faxed to the taxpayer or taxpayer's authorized representative must contain the fax number of the taxpayer or the taxpay- er's authorized representative to whom the correspondence is to be faxed.

A document other than the change in method of accounting letter ruling will be faxed by a
branch representative. The change in method of accounting letter ruling may be faxed by either
a branch representative or the Disclosure and Litigation Support Branch of the Legal Processing
Division of the Office of Associate Chief Counsel (Procedure and Administration) (CC:PA:LPD:
DLS).

For purposes of § 301.6110-2(h), a change in method of accounting letter ruling is not issued
until the change in method of accounting letter ruling is mailed.

Requesting a conference

(4) To request a conference. The taxpayer must complete the appropriate line on the Form
3115 to request a conference, or must request a conference in a later written communication, if
an adverse response is contemplated by the Associate office. See section 8.10 of Rev. Proc. 97-27,
section 10.03(1) of Rev. Proc. 2011-14, and sections 10.01, 10.02 of this revenue procedure.

Addresses to which to send
Forms 3115

.05 Addresses to which to send Forms 3115. Submit the original Form 3115, in the case of
an advance consent Form 3115, or the copy of the Form 3115, in the case of an automatic change
request, as follows:

(a) Associate office mailing address if private delivery service is not used. If a private
delivery service is not used, a taxpayer other than an exempt organization must send the original
completed Form 3115 and the required user fee (in the case of an advance consent Form 3115)
or the national office copy of the completed Form 3115 (in the case of an automatic change
request for which the copy is required to be filed with the national office) to:

Internal Revenue Service
Attn: [insert either "CC:PA:LPD:DRU"
for an advance consent
Form 3115 or "Automatic Change"
for an automatic change request]
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044

An exempt organization must send the original completed Form 3115 and the required user fee
(in the case of an advance consent Form 3115) or the national office copy of the completed Form
3115 (in the case of an automatic change request Form 3115 required to be filed with the national
office) to:

Internal Revenue Service
Tax Exempt & Government Entities
P.O. Box 2508
Cincinnati, OH 45201

See Rev. Proc. 2014-8, this Bulletin, for the applicable user fee for exempt organization Forms
3115.

(b) Mailing address if private delivery service is used. If a private delivery service is used,
a taxpayer other than an exempt organization must send the original completed Form 3115 and
the required user fee (in the case of an advance consent Form 3115) or the national office copy
of the completed Form 3115 (in the case of an automatic change request for which the copy is
required to be filed with the national office) to:

Internal Revenue Service
Attn: [insert either "CC:PA:LPD:DRU"
for an advance consent Form 3115
or "Automatic Change" for
an automatic change request]
1111 Constitution Ave., NW
Washington, DC 20224
Room 5336

If a private delivery service is used, an exempt organization must send the original completed
Form 3115 and the required user fee (in the case of an advance consent Form 3115) or the national
office copy of the completed Form 3115 (in the case of an automatic change request required to
be filed with the national office) to:

Internal Revenue Service
Tax Exempt & Government Entities
Attn: TEGE:EO
550 Main Street
Room 4024
Cincinnati, OH 45202

See Rev. Proc. 2014-8, this Bulletin, for the applicable user fee for exempt organization Forms
3115.

(c) Address if hand-delivered to the IRS Courier's desk. For taxpayers other than an exempt
organization, the original completed Form 3115 and the required user fee (in the case of an
advance consent Form 3115) or the national office copy of the completed Form 3115 (in the case
of an automatic change request required to be filed with the national office), may be hand
delivered between the hours of 8:00 a.m. and 4:00 p.m. to the courier's desk at the loading dock
(located behind the 12th Street security station) of 1111 Constitution Ave., NW, Washington, DC.
A receipt will be given at the courier's desk. The package should be addressed to:

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

(d) Ogden office mailing address if copy of Form 3115 for automatic request is required
to be filed with the Ogden office. If Rev. Proc. 2011-14, 2011-4 I.R.B. 330, or other published
guidance, requires a taxpayer to file a copy of the completed Form 3115 with the Ogden office,
send the Ogden copy of the automatic Form 3115 to:

Internal Revenue Service
1973 North Rulon White Blvd.
Mail Stop 4917
Ogden, UT 84404

A Form 3115 must not be
submitted by fax
Docket, Records, and User
Fee Branch receives,
initially controls, and
refers the Form 3115 to
the appropriate Associate
office

.06 A completed Form 3115 must not be submitted by fax.

.07 An advance consent Form 3115, is received and controlled by the Docket, Records, and
User Fee Branch, Legal Processing Division of the Associate Chief Counsel (Procedure and
Administration) (CC:PA:LPD:DRU) if the required user fee is submitted with the Form 3115.
Once controlled, the Form 3115 is forwarded to the appropriate Associate office for
assignment and processing.

Additional information

.08

Reply period

(1) Reply period.

(a) Advance consent Form 3115-21 day rule. In general, for an advance consent Form 3115,
additional information requested by the Associate office and additional information furnished to
the Associate office by telephone must be furnished in writing within 21 calendar days from the
date of the information request. The Associate office may impose a shorter reply period for a
request for additional information made after an initial request. See section 10.06 of this revenue
procedure for the 21-day rule for submitting information after any conference.

Sec. 9.08
January 2, 2014

(b) Automatic change request - 30 day rule. In general, for an automatic change request,
additional information requested by the Associate office, and additional information furnished to
the Associate office by telephone or fax, must be furnished in writing (other than a fax) within
30 calendar days from the date of the information request. The Associate office may impose a
shorter reply period for a request for additional information made after an initial request. See
section 10.06 of this revenue procedure for the 21-day rule for submitting information after any
conference with the Associate office.

Extension of reply period

### (2) Request for extension of reply period.

(a) Advance consent Form 3115. For an advance consent Form 3115, an additional period, not
to exceed 15 calendar days, to furnish information may be granted to a taxpayer. Any request for
an extension of time must be made in writing and submitted before the end of the original 21-day
period. If unusual circumstances close to the end of the 21-day period make a written request
impractical, the taxpayer should notify the Associate office within the 21-day period that there is
a problem and that the written request for extension will be provided shortly. An extension of the
21-day period will be granted only if approved by a branch reviewer. An extension of the 21-day
period ordinarily will not be granted to furnish information requested on Form 3115. The taxpayer
will be told promptly, and later in writing, of the approval or denial of the requested extension.
If the extension request is denied, there is no right of appeal.

(b) Automatic change request. For an automatic change request, an additional period, not to
exceed 30 calendar days, to furnish information may be granted to a taxpayer. Any request for an
extension of time must be made in writing and submitted before the end of the original 30-day
period. If unusual circumstances close to the end of the 30-day period make a written request
impractical, the taxpayer should notify the Associate office within the 30-day period that there is
a problem and that the written request for extension will be coming soon. An extension of the
30-day period will be granted only if approved by a branch reviewer. An extension of the 30-day
period ordinarily will not be granted to furnish information requested on Form 3115. The taxpayer
will be told promptly of the approval or denial of the requested extension. If the extension request
is denied, there is no right of appeal.

Penalties of perjury
statement for additional
information

(3) Penalties of perjury statement. Additional information submitted to the Associate
office must be accompanied by the following declaration: "Under penalties of perjury, I
declare that I have examined this information, including accompanying documents, and,
to the best of my knowledge and belief, the information contains all the relevant facts
relating to the request for the information, and such facts are true, correct, and
complete." This declaration must be signed in accordance with the requirements in section
9.03(11)(b) of this revenue procedure.

Identifying information
included in additional
information

(4) Identifying information. The additional information should also include the taxpayer's
name and the case control number and the name, office symbols, and room number of the
Associate office representative who requested the information. The Associate office
representative can provide the latter information to the taxpayer.

Faxing information request
and additional information

(5) Faxing information request and additional information. To facilitate prompt action on
a change in method of accounting ruling request, taxpayers may request that the Associate office
request additional information by fax. See section 9.04(3) of this revenue procedure.

Taxpayers may also submit additional information by fax as soon as the information is
available. The Associate office representative who requests additional information can provide a
telephone number to which the information can be faxed. A copy of the requested information and
an original signed penalties of perjury statement also must be mailed or delivered to the Associate
office.

Address to which to send
additional information to
an Associate office

(6) Address to which to send additional information to an Associate office.

Sec. 9.08
January 2, 2014

(a) Address if private delivery service not used. For a request for change in method of
accounting under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting),
if a private delivery service is not used, the additional information should be sent to:

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Associate office
representative who requested
the information]
P.O. Box 14095
Ben Franklin Station
Washington, DC 20044

For a request for change in method of accounting for an exempt organization, if a private
delivery service is not used, the additional information should be sent to:

Internal Revenue Service
Tax Exempt & Government Entities
O. Box 2508
McPherson Station
Washington, DC 20038

For any other request for change in method of accounting, if a private delivery service is not
used, the additional information should be sent to:

(b) Address if private delivery service is used. For a request for a change in method of
accounting for other than an exempt organization, if a private delivery service is used, the
additional information should be sent to:

For a request for change in method of accounting for an exempt organization, if a private
delivery service is used the additional information should be sent to:

Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192

Failure to timely submit
additional information to
an Associate office

(7) If taxpayer does not timely submit additional information.

(a) Advance consent Form 3115. In the case of an advance consent Form 3115, if the required
information is not furnished to the Associate office within the reply period, the Form 3115 will
not be processed and the case will be closed. The taxpayer or authorized representative will be
so notified in writing.

(b) Automatic change request. In the case of an automatic change request, if the required
information is not furnished to the Associate office within the reply period, the request does not
qualify for the automatic consent procedure. In such a case, the Associate office will notify the
taxpayer that consent to make the change in method of accounting is not granted.

(c) Submitting the additional information at a later date. If the taxpayer wants to submit the
additional information at a later date, the taxpayer must submit it with a new completed Form
3115 (and user fee, if applicable) for a year of change for which such new Form 3115 is timely
filed under the applicable change in method of accounting procedure.

Circumstances in which
the taxpayer must notify
the Associate office

.09 For an advance consent Form 3115, the taxpayer must promptly notify the Associate office
if, after the Form 3115 is filed but before a change in method of accounting letter ruling is issued,
the taxpayer knows that-

(1) a Field office has started an examination of the present or proposed accounting;

(2) a Field office has started an examination of the proposed year of change;

(3) legislation that may affect the change in method of accounting has been introduced, see
section 9.03(7) of this revenue procedure; or

(4) another letter ruling request (including another Form 3115) has been submitted by the
taxpayer or a related party within the meaning of § 267 or a member of an affiliated group of
which the taxpayer is a member within the meaning of § 1504.

Determines if proposed
method of accounting can
be modified to obtain fa-
vorable letter ruling

.10 For an advance consent Form 3115, if a less than fully favorable change in method of
accounting letter ruling is indicated, the branch representative will tell the taxpayer whether minor
changes in the proposed method of accounting would bring about a favorable ruling. The branch
representative will not suggest precise changes that materially alter a taxpayer's proposed method
of accounting.

Near the completion of
processing the Form 3115,
advises the taxpayer if the
Associate office will rule
adversely and offers the
taxpayer the opportunity
to withdraw Form 3115

.11 Generally, after the conference is held (or offered, in the event no conference is held) and
before issuing any change in method of accounting letter ruling that is adverse to the requested
change in method of accounting, the taxpayer will be offered the opportunity to withdraw the
Form 3115. See section 9.12 of this revenue procedure. If, within 10 calendar days of the
notification by the branch representative, the taxpayer or the taxpayer's representative does not
notify the branch representative of a decision to withdraw the Form 3115, the adverse change in
method of accounting letter ruling will be issued unless an extension is granted. Ordinarily, the
user fee required for an advance consent Form 3115 will not be refunded for a Form 3115 that
is withdrawn.

Advance consent Form
3115 may be withdrawn or
Associate office may de-
cline to issue a change in
method of accounting letter
ruling

.12

(1) In general. A taxpayer may withdraw an advance consent Form 3115 at any time before
the change in method of accounting letter ruling is signed by the Associate office. The Form 3115,
correspondence, and any documents relating to the Form 3115 that is withdrawn or for which the
Associate office declines to issue a letter ruling will not be returned to the taxpayer. See section
9.03(3) of this revenue procedure. In appropriate cases, the Service may publish its conclusions
in a revenue ruling or revenue procedure.

(2) Notification of appropriate Service official. If a taxpayer withdraws, or the Associate
office declines to grant (for any reason), a request to change from or to an improper method of

Sec. 9.12
January 2, 2014

How to check status of a
pending advance consent
Form 3115

Service is not bound by
informal opinion

Single letter ruling issued
to a taxpayer or consoli-
dated group for qualifying
identical change in method
of accounting

Letter ruling ordinarily not
issued for one of two or
more interrelated items or
submethods

#### Consent Agreement

accounting, the Associate office will notify, in writing, the appropriate Service official in the
operating division that has examination jurisdiction of the taxpayer's tax return and the Change
in Method of Accounting Technical Advisor, and may give its views on the issues in the request
to the Service official to consider in any later examination of the return.

If the memorandum to the Service official provides more than the fact that the request was
withdrawn and the Associate office was tentatively adverse, or that the Associate office declines
to grant a change in method of accounting, the memorandum may constitute Chief Counsel
Advice, as defined in § 6110(i)(1), and may be subject to disclosure under § 6110.

(3) Refund of user fee. Ordinarily, the user fee will not be returned for an advance consent
Form 3115 that is withdrawn. See section 15.10 of this revenue procedure for information
regarding refunds of user fees.

.13 The taxpayer or the taxpayer's authorized representative may obtain information regarding
the status of an advance consent Form 3115 by calling the person whose name and telephone
number are shown on the acknowledgement of receipt of the Form 3115.

.14 The Service will not be bound by any informal opinion expressed by the branch represen-
tative or any other Service representative, and such an opinion cannot be relied upon as a basis
for obtaining retroactive relief under the provisions of § 7805(b).

.15 For an advance consent Form 3115 qualifying under section 15.07(4) for the user fee
provided in paragraph (A)(5)(b) of Appendix A of this revenue procedure for identical changes
in method of accounting, the Associate office generally will issue a single letter ruling on behalf
of all applicants on the Form 3115 that are subject of the request.

.16 If two or more items or submethods of accounting are interrelated, the Associate office
ordinarily will not issue a letter ruling on a change in method of accounting involving only one
of the items or submethods.

.17 Ordinarily, for an advance consent Form 3115, the Commissioner's permission to change
a taxpayer's method of accounting is set forth in a letter ruling (original and a Consent Agreement
copy). If the taxpayer agrees to the terms and conditions contained in the change in method of
accounting letter ruling, the taxpayer must sign and date the Consent Agreement copy of the letter
ruling in the appropriate space. The Consent Agreement must be signed by an individual with
authority to bind the taxpayer in such matters. The Consent Agreement copy must not be signed
by the taxpayer's representative. The signed copy of the letter ruling will constitute an agreement
(Consent Agreement) within the meaning of § 1.481-4(b) of the regulations. The signed Consent
Agreement copy of the letter ruling must be returned to the Associate office within 45 calendar
days. In addition, a copy of the signed Consent Agreement must be attached to the taxpayer's
income tax return for the year of change. See section 8.11 of Rev. Proc. 97-27. A taxpayer filing
its return electronically should attach the Consent Agreement as a PDF file named
"Form3115Consent." If the taxpayer has filed its income tax return for the year of change before
the ruling has been received and the Consent Agreement has been signed and returned, the copy
of the signed Consent Agreement should be attached to the amended return for the year of change
that the taxpayer files to implement the change in method of accounting.

A taxpayer must secure the consent of the Commissioner before changing a method of
accounting for Federal income tax purposes. See Treas. Reg. § 1.446-1(e)(2)(i). For a change in
method of accounting requested on an advance consent Form 3115, a taxpayer has secured the
consent of the Commissioner when the taxpayer timely signs and returns the Consent Agreement
copy of the letter ruling from the Associate office granting permission to make the change in
method of accounting. A taxpayer who timely files an advance consent Form 3115 and takes the
requested change into account in the taxpayer's Federal income tax return for the year of change

(and any subsequent tax year), prior to receiving the letter ruling granting permission for the
requested change, may nevertheless rely on the letter ruling received from the Associate office
after it is received, as provided in section 9.19 of this revenue procedure. If, however, the
requested change is modified or is withdrawn, denied, or similarly closed without the Associate
office having granted consent, taxpayers are not relieved of any interest, penalties, or other
adjustments resulting from improper implementation of the change.

.18 The Associate office will send a copy of each change in method of accounting letter ruling,
whether favorable or adverse, to the appropriate Service official in the operating division that has
examination jurisdiction of the taxpayer's tax return.

.19 A taxpayer may rely on a change in method of accounting letter ruling received from the
Associate office, subject to certain conditions and limitations. See sections 9, 10, and 11 of Rev.
Proc. 97-27, 1997-1 C.B 680.

A qualifying taxpayer complying timely with an automatic change request procedure may rely
on the consent of the Commissioner as provided in the automatic change request procedure to
change the taxpayer's method of accounting, subject to certain conditions and limitations. See
generally sections 6.01, 7, and 8 of Rev. Proc. 2011-14, 2011-4 I.R.B. 330 (or its successor). An
Associate office may review a Form 3115 filed under an automatic change request procedure and
will notify the taxpayer if additional information is needed or if consent is not granted to the
taxpayer for the requested change. See section 10 of Rev. Proc. 2011-14 (or its successor).
Further, the Field office that has jurisdiction over the taxpayer's return may review the Form
3115. See section 9 of Rev. Proc. 2011-14.

.20 A taxpayer may not rely on a change in method of accounting letter ruling issued to another taxpayer.
See § 6110(k)(3).

.21 The Associate office reserves the right to decline to process any advance consent Form 3115 in
situations in which it would not be in the best interest of sound tax administration to permit the requested
change. In this regard, the Associate office will consider whether the change in method of accounting would
clearly and directly frustrate compliance efforts of the Service in administering the income tax laws. See
section 8.01 of Rev. Proc. 97-27.

# List of automatic change in method of accounting request procedures

.22 For procedures regarding requests for an automatic change in method of accounting, refer
to the following published automatic change request procedures. The Commissioner's consent to
an otherwise qualifying automatic change in method of accounting is granted only if the taxpayer
complies timely with the applicable automatic change request procedure.

The automatic change request procedures for obtaining a change in method of accounting
include:

(1) Rev. Proc. 2011-14, 2011-4 I.R.B. 330 (or any successor). Rev. Proc. 2011-14 applies to
the changes in method of accounting described in the Appendix of Rev. Proc. 2011-14, 2011-4
I.R.B. 330.

(2) The following automatic change request procedures, which require a completed Form 3115,
provide both the procedures under which a change may be made automatically and the procedures
under which such change must be made:

Treas. Reg. § 1.166-2(d)(3) (bank conformity for bad debts);

Treas. Reg. § 1.448-1 (to an overall accrual method for the taxpayer's first taxable year it is
subject to § 448) (this change may also be subject to the procedures of Rev. Proc. 2011-14,
2011-4 I.R.B. 330 (or any successor));

A copy of the change in
method of accounting letter
ruling is sent to appropri-
ate Service official

Consent to change a
method of accounting may
be relied on subject to lim-
itations

Change in method of ac-
counting letter ruling does
not apply to another taxpayer
Associate office discretion to
permit requested change in
method of accounting

Treas. Reg. § 1.458-1 and -2 (exclusion for certain returned magazines, paperbacks, or
records);

Rev. Proc. 97-43, 1997-2 C.B. 494 (§ 475 - electing out of certain exemptions from
securities dealer status); and

Rev. Proc. 91-51, 1991-2 C.B. 779 (§ 1286 - certain taxpayers under examination that sell
mortgages and retain rights to service the mortgages).

(3) The following automatic change request procedures, which do not require a completed
Form 3115, provide the type of change in method of accounting that may be made automatically
and also provide the procedures under which such change must be made:

Notice 96-30, 1996-1 C.B. 378 (§ 446 - change to comply with Statement of Financial
Accounting Standards No. 116);

Rev. Proc. 92-29, 1992-1 C.B. 748 (§ 461 - change in real estate developer's method for
including costs of common improvements in the basis of property sold);

Rev. Proc. 98-58, 1998-2 C.B. 712 (certain taxpayers seeking to change to the installment
method of accounting under § 453 for alternative minimum tax purposes for certain deferred
payment sales contracts relating to property used or produced in the trade or business of farming);

Treas. Reg. § 1.472-2 (taxpayers changing to the last-in, first-out (LIFO) inventory method);

Section 585(c) and Treas. Reg. §§ 1.585-6 and 1.585-7 (large bank changing from the reserve
method of § 585); and

Rev. Proc. 92-67, 1992-2 C.B. 429 (election under § 1278(b) to include market discount in
income currently or election under § 1276(b) to use constant interest rate to determine accrued
market discount).

(4) See Appendix E for the list of revenue procedures for automatic changes in accounting
period.

Other sections of this reve-
nue procedure that are
applicable to Form 3115

.23 In addition to this section 9, the following sections of this revenue procedure apply to
automatic change requests and advance consent Forms 3115:

1 (purpose of Rev. Proc. 2014-1);

2.01 (definition of "letter ruling");

2.02 (definition of "closing agreement");

2.05 (oral guidance);

3.01 (issues under the jurisdiction of the Associate Chief Counsel (Corporate));

3.02 (issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
Products));

3.03 (issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting));

3.04 (issues under the jurisdiction of the Associate Chief Counsel (International));

3.05 (issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special
Industries));

3.07 (issues under the jurisdiction of the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities));

5.03(2) (period of limitation when filing a request for extensions of time for making an election
or for other relief under § 301.9100);

6.02 (letter rulings ordinarily not issued in certain areas because of the factual nature of the
problem);

6.05 (letter rulings ordinarily not issued to business associations or groups);

6.06 (letter rulings ordinarily not issued where the request does not address the tax status,
liability, or reporting obligations of the requester);

6.08 (letter rulings ordinarily not issued on Federal tax consequences of proposed legislation);

6.10 (letter rulings not issued on frivolous issues);

6.12 (letter rulings not issued on alternative plans or hypothetical situation);

7.01(1) (statement of facts and other information);

7.01(8) (statement of supporting authorities);

7.01(13) (authorized representatives);

7.01(14) (power of attorney and declaration of representative);

7.02(2) (power of attorney used to indicate recipient of a copy or copies of a letter ruling or a
determination letter);

7.02(4) (expedited handling);

7.04(2) (notify Associate office if a return, amended return, or claim for refund is filed while
request is pending and attach request to the return);

7.05 (attach letter ruling to the return, amended return or claim for refund);

8.01 (receipt and control of the request, and referral to the appropriate Associate office);

8.04 (not bound by informal opinion expressed);

10 (scheduling conferences);

15 (user fees);

16 (significant changes to Rev. Proc. 2013-1);

17 (effect of Rev. Proc. 2014-1 on other documents);

18 (effective date of this revenue procedure);

Appendix A (schedule of user fees); and

Appendix E (revenue procedures and notices regarding letter ruling requests relating to specific
Code sections and subject matters).

SECTION 10. HOW ARE
CONFERENCES FOR
LETTER RULINGS
SCHEDULED?

Schedules a conference if
requested by taxpayer

.01 A taxpayer may request a conference regarding a letter ruling request. Normally, a
conference is scheduled only when the Associate office considers it to be helpful in deciding the
case or when an adverse decision is indicated. If conferences are being arranged for more than one

Sec. 10.01
January 2, 2014

request for a letter ruling involving the same taxpayer, they will be scheduled so as to cause the
least inconvenience to the taxpayer. As stated in sections 7.02(6) and 9.04(4) of this revenue
procedure, a taxpayer who wants to have a conference on the issue or issues involved should
indicate this in writing when, or soon after, filing the request.

If a conference has been requested, the taxpayer or the taxpayer's representative will be notified
by telephone, if possible, of the time and place of the conference, which must then be held within
21 calendar days after this contact. Instructions for requesting an extension of the 21-day period
and notifying the taxpayer or the taxpayer's representative of the Associate office's approval or
denial of the request for extension are the same as those explained in section 8.05(2) (section
9.08(2)(a) for a change in method of accounting request) of this revenue procedure regarding
providing additional information.

Permits taxpayer one con-
ference of right

.02 A taxpayer is entitled, as a matter of right, to only one conference in the Associate office,
except as explained under section 10.05 of this revenue procedure. This conference is normally
held at the branch level and is attended by a person who has the authority to sign the letter ruling
in his or her own name or for the branch chief.

When more than one branch has taken an adverse position on an issue in a letter ruling request
or when the position ultimately adopted by one branch will affect that adopted by another, a
representative from each branch with the authority to sign in his or her own name or for the branch
chief will attend the conference. If more than one subject is to be discussed at the conference, the
discussion will constitute a conference on each subject.

To have a thorough and informed discussion of the issues, the conference usually will be held
after the branch has had an opportunity to study the case. At the request of the taxpayer, the
conference of right may be held earlier.

No taxpayer has a right to appeal the action of a branch to an Associate Chief Counsel or to
any other official of the Service. But see section 10.05 of this revenue procedure for situations in
which the Associate office may offer additional conferences.

In employment tax matters, if the service recipient (the firm) requests the letter ruling, the firm
is entitled to a conference. If the worker requests the letter ruling, both the worker and the firm
are entitled to a conference. See section 5.10 of this revenue procedure.

Disallows verbatim
recording of conferences

.03 Because conference procedures are informal, no tape, stenographic, or other verbatim
recording of a conference may be made by any party.

Makes tentative
recommendations on
substantive issues

.04 The senior Associate office representative present at the conference ensures that the
taxpayer has the opportunity to present views on all the issues in question. An Associate office
representative explains the Associate office's tentative decision on the substantive issues and the
reasons for that decision. If the taxpayer asks the Associate office to limit the retroactive effect
of any letter ruling or limit the revocation or modification of a prior letter ruling, an Associate
office representative will discuss the recommendation concerning this issue and the reasons for
the recommendation. The Associate office representatives will not make a commitment regarding
the conclusion that the Associate office will finally adopt.

May offer additional
conferences

.05 The Associate office will offer the taxpayer an additional conference if, after the conference
of right, an adverse holding is proposed, but on a new issue, or on the same issue but on different
grounds from those discussed at the first conference. There is no right to another conference when
a proposed holding is reversed at a higher level with a result less favorable to the taxpayer, if the
grounds or arguments on which the reversal is based were discussed at the conference of right.

The limit on the number of conferences to which a taxpayer is entitled does not prevent the
Associate office from offering additional conferences, including conferences with an official
higher than the branch level, if the Associate office decides they are needed. These conferences
are not offered as a matter of course simply because the branch has reached an adverse decision.
In general, conferences with higher level officials are offered only if the Associate office

determines that the case presents significant issues of tax policy or tax administration and that the
consideration of these issues would be enhanced by additional conferences with the taxpayer.

Requires written
confirmation of
information presented at
conference

.06 The taxpayer should furnish to the Associate office any additional data, reasoning,
precedents, etc. that were proposed by the taxpayer and discussed at the conference but not
previously or adequately presented in writing. The taxpayer must furnish the additional infor-
mation within 21 calendar days from the date of the conference. If the additional information is
not received within that time, a letter ruling will be issued on the basis of the information on hand
or, if appropriate, no ruling will be issued. See section 8.05 of this revenue procedure for
instructions on submission of additional information for a letter ruling request other than a change
in method of accounting request. See section 9.08 of this revenue procedure for instructions on
submitting additional information for a change in method of accounting request.

# May schedule a pre-submission conference

.07 Sometimes it will be advantageous to both the Associate office and the taxpayer to hold a
conference before the taxpayer submits the letter ruling request to discuss substantive or
procedural issues relating to a proposed transaction. These conferences are held only if the
identity of the taxpayer is provided to the Associate office, only if the taxpayer actually intends
to make a request, only if the request involves a matter on which a letter ruling is ordinarily
issued, and only at the discretion of the Associate office and as time permits. For example, a
pre-submission conference will not be held on an income tax issue if, at the time the pre-
submission conference is requested, the identical issue is involved in the taxpayer's return for an
earlier period and that issue is being examined by a Field office. See section 6.01(1) of this
revenue procedure. A letter ruling request submitted following a pre-submission conference will
not necessarily be assigned to the branch that held the pre-submission conference. Also, when a
letter ruling request is not submitted following a pre-submission conference, the Associate office
may notify, by memorandum, the appropriate Service official in the operating division that has
examination jurisdiction of the taxpayer's tax return and may give its views on the issues raised
during the pre-submission conference. For LB&I taxpayers, a copy of the memorandum will be
sent to the Director of Pre-Filing & Technical Guidance. This memorandum may constitute Chief
Counsel Advice, as defined in § 6110(i), and may be subject to disclosure under § 6110.

(1) Taxpayer may request a pre-submission conference in writing or by telephone. A
taxpayer or the taxpayer's representative may request a pre-submission conference in writing or
by telephone. If the taxpayer's representative is requesting the pre-submission conference, a
power of attorney is required. A taxpayer should use Form 2848, Power of Attorney and
Declaration of Representative, to provide the representative's authority. If multiple taxpayers
and/or their authorized representatives will attend or participate in the pre-submission conference,
cross powers of attorney (or, as appropriate, tax information authorizations) are required. If the
taxpayer's representative is requesting the pre-submission conference by telephone, the Associate
office's representative (see list of phone numbers below) will provide the fax number to send the
power of attorney (or, as appropriate, tax information authorizations) prior to scheduling the
pre-submission conference.

The request should identify the taxpayer and briefly explain the primary issue so it can be
assigned to the appropriate branch. If submitted in writing, the request should also identify the
Associate office expected to have jurisdiction over the request for a letter ruling. A written request
for a pre-submission conference should be sent to the appropriate address listed in section 7.03
of this revenue procedure.

To request a pre-submission conference by telephone, call:

(a) (202) 317-7700 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Corporate);

(b) (202) 317-4443 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Financial Institutions and Products);

(c) (202) 317-7002 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Income Tax and Accounting);

(d) (202) 317-3800 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (International);

(e) (202) 317-3100 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Passthroughs and Special Industries);

(f) (202) 317-3400 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Procedure and Administration); or

(g) (202) 317-6000 (not a toll-free call) for matters under the jurisdiction of the Office of
Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities).

(2) Pre-submission conferences held in person or by telephone. Depending on the circum-
stances, pre-submission conferences may be held in person at the Associate office or may be
conducted by telephone.

(3) Certain information required to be submitted to the Associate office prior to the
pre-submission conference. Generally, the taxpayer will be asked to provide, at least three
business days before the scheduled pre-submission conference, a statement of whether the issue
is an issue on which a letter ruling is ordinarily issued, a draft of the letter ruling request or other
detailed written statement of the proposed transaction, issue, and legal analysis. If the taxpayer's
authorized representative will attend or participate in the pre-submission conference, a power of
attorney is required.

(4) Discussion of substantive issues is not binding on the Service. Any discussion of
substantive issues at a pre-submission conference is advisory only, is not binding on the Service
in general or on the Office of Chief Counsel in particular, and cannot be relied upon as a basis
for obtaining retroactive relief under the provisions of § 7805(b).

May schedule a conference
to be held by telephone

.08 Depending on the circumstances, conferences, including conferences of right and pre-
submission conferences, may be held by telephone. This may occur, for example, when a taxpayer
wants a conference of right but believes that the issue involved does not warrant incurring the
expense of traveling to Washington, DC, or if it is believed that scheduling an in-person
conference of right will substantially delay the ruling process. If a taxpayer makes such a request,
the branch reviewer will decide if it is appropriate in the particular case to hold a conference by
telephone. If the request is approved, the taxpayer will be advised when to call the Associate
office representatives (not a toll-free call).

SECTION 11. WHAT
EFFECT WILL A LET-
TER RULING HAVE?

May be relied on subject to
limitations

.01 A taxpayer ordinarily may rely on a letter ruling received from the Associate office subject
to the conditions and limitations described in this section.

.02 A taxpayer may not rely on a letter ruling issued to another taxpayer. See § 6110(k)(3).

Will not apply to another
taxpayer

Will be used by a Field
office in examining the tax-
payer's return

.03 When determining a taxpayer's liability, the Field office must ascertain whether-

(1) the conclusions stated in the letter ruling are properly reflected in the return;

(2) the representations upon which the letter ruling was based reflect an accurate statement of
the controlling facts;

(3) the transaction was carried out substantially as proposed; and

(4) there has been any change in the law that applies to the period during which the transaction
or continuing series of transactions were consummated.

If, when determining the liability, the Field office finds that a letter ruling should be revoked
or modified, the findings and recommendations of the Field office will be forwarded through the
appropriate Director to the Associate office for consideration before further action is taken by the
Field office. Such a referral to the Associate office will be treated as a request for technical advice
and the provisions of Rev. Proc. 2014-2, this Bulletin, relating to requests for technical advice
will be followed. See section 13.02 of Rev. Proc. 2014-2, this Bulletin. Otherwise, the Field
office should apply the letter ruling in determining the taxpayer's liability. If a Field office having
jurisdiction over a return or other matter proposes to reach a conclusion contrary to a letter ruling
previously issued to the taxpayer, it should coordinate the matter with the Associate office.

.04 Unless it was part of a closing agreement as described in section 2.02 of this revenue
procedure, a letter ruling found to be in error or not in accord with the current views of the Service
may be revoked or modified. If a letter ruling is revoked or modified, the revocation or
modification applies to all years open under the period of limitation unless the Service uses its
discretionary authority under § 7805(b) to limit the retroactive effect of the revocation or
modification.

May be revoked or modi-
fied if found to be in error
or there has been a change
in law

A letter ruling may be revoked or modified by-

(1) a letter giving notice of revocation or modification to the taxpayer to whom the letter ruling
was issued;

(2) the enactment of legislation or ratification of a tax treaty;

(3) a decision of the United States Supreme Court;

(4) the issuance of temporary or final regulations; or

(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement published in
the Internal Revenue Bulletin.

Consistent with these provisions, if a letter ruling relates to a continuing action or a series of
actions, it ordinarily will be applied until any one of the events described above occurs or until
it is specifically withdrawn.

Publication of a notice of proposed rulemaking will not affect the application of any letter
ruling issued under this revenue procedure.

Where a letter ruling is revoked or modified by a letter to the taxpayer, the letter will state
whether the revocation or modification is retroactive. Where a letter ruling is revoked or modified
by the issuance of final or temporary regulations or by the publication of a revenue ruling, revenue
procedure, notice, or other statement in the Internal Revenue Bulletin, the document may contain
a statement as to its retroactive effect on letter rulings.

Letter ruling revoked or
modified based on material
change in facts applied ret-
roactively

.05 An Associate office will revoke or modify a letter ruling and apply the revocation
retroactively to the taxpayer for whom the letter ruling was issued or to a taxpayer whose tax
liability was directly involved in the letter ruling if-

(1) there has been a misstatement or omission of controlling facts;

(2) the facts at the time of the transaction are materially different from the controlling facts on
which the letter ruling was based; or

(3) the transaction involves a continuing action or series of actions and the controlling facts
change during the course of the transaction.

## Not otherwise generally revoked or modified retro- actively

.06 Where the revocation or modification of a letter ruling is for reasons other than a change
in facts as described in section 11.05 of this revenue procedure, it will generally not be applied
retroactively to the taxpayer for whom the letter ruling was issued or to a taxpayer whose tax
liability was directly involved in the letter ruling provided that-

(1) there has been no change in the applicable law;

(2) the letter ruling was originally issued for a proposed transaction; and

(3) the taxpayer directly involved in the letter ruling acted in good faith in relying on the letter
ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer's
detriment. For example, the tax liability of each shareholder is directly involved in a letter ruling
on the reorganization of a corporation. Depending on all facts and circumstances, the sharehold-
ers' reliance on the letter ruling may be in good faith. The tax liability of a member of an industry,
however, is not directly involved in a letter ruling issued to another member of the same industry.
Therefore, a nonretroactive revocation or modification of a letter ruling to one member of an
industry will not extend to other members of the industry who have not received letter rulings. By
the same reasoning, a tax practitioner may not extend to one client the non-retroactive application
of a revocation or modification of a letter ruling previously issued to another client.

If a letter ruling is revoked or modified by a letter with retroactive effect, the letter will, except
in fraud cases, state the grounds on which the letter ruling is being revoked or modified and
explain the reasons why it is being revoked or modified retroactively.

Retroactive effect of revo-
cation or modification ap-
plied to a particular trans-
action

.07 A letter ruling issued on a particular transaction represents a holding of the Service on that
transaction only. It will not apply to a similar transaction in the same year or any other year.
Except in unusual circumstances, the application of that letter ruling to the transaction will not be
affected by the later issuance of regulations (either temporary or final) if conditions (1) through
(3) in section 11.06 of this revenue procedure are met.

If a letter ruling on a transaction is later found to be in error or no longer in accord with the
position of the Service, it will not protect a similar transaction of the taxpayer in the same year
or later year.

Retroactive effect of revo-
cation or modification ap-
plied to a continuing action
or series of actions

.08 If a letter ruling is issued covering a continuing action or series of actions and the letter
ruling is later found to be in error or no longer in accord with the position of the Service, the
appropriate Associate Chief Counsel ordinarily will limit the retroactive effect of the revocation
or modification to a date that is not earlier than that on which the letter ruling is revoked or
modified. For example, the retroactive effect of the revocation or modification of a letter ruling
covering a continuing action or series of actions ordinarily would be limited in the following
situations when the letter ruling is in error or no longer in accord with the position of the Service:

(1) A taxpayer received a letter ruling that certain payments are excludable from gross income
for Federal income tax purposes. The taxpayer ordinarily would be protected only for the payment
received after the letter ruling was issued and before the revocation or modification of the letter
ruling.

(2) A taxpayer rendered a service or provided a facility that is subject to the excise tax on
services or facilities and, in relying on a letter ruling received, it did not pass the tax on to the user
of the service or the facility.

(3) An employer incurred liability under the Federal Insurance Contributions Act but, in relying
on a letter ruling received, neither collected the employee tax nor paid the employee and employer
taxes under the Federal Insurance Contributions Act. The retroactive effect would be limited for
both the employer and employee tax. The limitation would be conditioned on the employer
furnishing wage data, as may be required by § 31.6011(a)-1 of the Treasury Regulations.

Generally not retroactively revoked or modified if re- lated to sale or lease sub- ject to excise tax

.09 A letter ruling holding that the sale or lease of a particular article is subject to the manufacturer's excise tax or the retailer's excise tax may not retroactively revoke or modify an earlier letter ruling holding that the sale or lease of such an article was not taxable if the taxpayer to whom the letter ruling was issued, in relying on the earlier letter ruling, gave up possession or ownership of the article without passing the tax on to the customer. See § 1108(b), Revenue Act of 1926.

May be retroactively re- voked or modified when transaction is entered into before the issuance of the letter ruling

.10 A taxpayer is not protected against retroactive revocation or modification of a letter ruling involving a transaction completed before the issuance of the letter ruling or involving a continuing action or series of actions occurring before the issuance of the letter ruling, because the taxpayer did not enter into the transaction relying on a letter ruling.

Taxpayer may request that retroactivity be limited

.11 Under § 7805(b), the Service may prescribe any extent to which a revocation or modifi- cation of a letter ruling will be applied without retroactive effect.

A taxpayer to whom a letter ruling has been issued may request that the appropriate Associate Chief Counsel limit the retroactive effect of any revocation or modification of the letter ruling.

Format of request

(1) Request for relief under § 7805(b) must be made in required format. A request to limit the retroactive effect of the revocation or modification of a letter ruling must be in the general form of, and meet the general requirements for, a letter ruling request. These requirements are given in section 7 of this revenue procedure. Specifically, the request must also (a) state that it is being made under § 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief requested (including a discussion of section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue procedure, and any other factors as they relate to the taxpayer's particular situation); and (d) include any documents bearing on the request.

When notice is given by the Field office during an examination of the taxpayer's return or by Appeals, during consideration of the taxpayer's return before Appeals, a request to limit retroactive effect must be made in the form of a request for technical advice as explained in section 14.02 of Rev. Proc. 2014-2, this Bulletin. When germane to a pending letter ruling request, a request to limit the retroactive effect of a revocation or modification of a letter ruling may be made as part of the request for the letter ruling, either initially or at any time before the letter ruling is issued. When a letter ruling that concerns a continuing transaction is revoked or modified by, for example, a subsequent revenue ruling, a request to limit retroactive effect must be made before the examination of the return that contains the transaction that is the subject of the letter ruling request.

Request for conference

(2) Taxpayer may request a conference on application of § 7805(b). A taxpayer who requests the application of § 7805(b) in a separate letter ruling request has the right to a conference in the Associate office as explained in sections 10.02, 10.04, and 10.05 of this revenue procedure. If the request is made initially as part of a pending letter ruling request or is made before the conference of right is held on the substantive issues, the § 7805(b) issue will be discussed at the taxpayer's one conference of right as explained in section 10.02 of this revenue procedure. If the request for the application of § 7805(b) relief is made as part of a pending letter

ruling request after a conference has been held on the substantive issue and the Associate office determines that there is justification for having delayed the request, the taxpayer is entitled to one conference of right concerning the application of § 7805(b), with the conference limited to discussion of this issue only.

SECTION 12. UNDER WHAT CIRCUM- STANCES DO DIREC- TORS ISSUE DETERMI- NATION LETTERS?

Directors issue determination letters only if the question presented is specifically answered by a statute, tax treaty, or regulations, a conclusion stated in a revenue ruling, or an opinion or court decision that represents the position of the Service. Under no circumstances will a Director issue a determination letter unless it is clearly shown that the request concerns a return that has been filed or is required to be filed and over which the Director has, or will have, examination jurisdiction. A determination letter does not include assistance provided by the U.S. competent authority pursuant to the mutual agreement procedure in tax treaties as set forth in Rev. Proc. 2006-54, 2006-2 C.B. 1035.

In income and gift tax matters

.01 In income and gift tax matters, Directors issue determination letters in response to taxpayers' written requests on completed transactions that affect returns over which they have examination jurisdiction. A determination letter usually is not issued for a question concerning a return to be filed by the taxpayer if the same question is involved in a return already filed. Normally, Directors do not issue determination letters on the tax consequences of proposed transactions. A Director may issue a determination letter on the replacement of involuntarily converted property under § 1033, even if the replacement has not yet been made, if the taxpayer has filed an income tax return for the year in which the property was involuntarily converted.

In estate tax matters

.02 In estate tax matters, Directors issue determination letters in response to written requests affecting the estate tax returns over which they have examination jurisdiction. They do not issue determination letters on matters concerning the application of the estate tax to the prospective estate of a living person.

In generation-skipping transfer tax matters

.03 In generation-skipping transfer tax matters, Directors issue determination letters in response to written requests affecting the generation-skipping transfer tax returns over which they have examination jurisdiction. They do not issue determination letters on matters concerning the application of the generation-skipping transfer tax before the distribution or termination takes place.

In employment and excise tax matters

.04 In employment and excise tax matters, Directors issue determination letters in response to taxpayers' written requests on completed transactions over which they have examination juris- diction. See also section 5.10 of this revenue procedure.

Requests concerning in- come, estate, or gift tax returns

.05 A request received by a Director on a question concerning an income, estate, or gift tax return already filed generally will be considered in connection with the examination of the return. If a response is made to the request before the return is examined, it will be considered a tentative finding in any later examination of that return.

Review of determination letters

.06 Determination letters issued under sections 12.01 through 12.04 of this revenue procedure are not reviewed by the Associate offices before they are issued. If a taxpayer believes that a determination letter of this type is in error, the taxpayer may ask the Director to reconsider the matter or to request technical advice from an Associate office as explained in Rev. Proc. 2014-2, this Bulletin.

SECTION 13. WHAT EF- FECT WILL A DETER- MINATION LETTER HAVE?

Has same effect as a letter ruling Bulletin No. 2014-1

.01 A determination letter issued by a Director has the same effect as a letter ruling issued to a taxpayer under section 11 of this revenue procedure. Sec. 13.01

53 January 2, 2014

Taxpayer may request that
retroactive effect of revoca-
tion or modification be lim-
ited

If a Field office proposes to reach a conclusion contrary to that expressed in a determination
letter, that office need not refer the matter to the Associate office as is required for a letter ruling
found to be in error. The Field office must, however, refer the matter to the Associate office
through the appropriate Director if it desires to have the revocation or modification of the
determination letter limited under § 7805(b).

.02 Under § 7805(b), the Service may prescribe the extent to which a revocation or modifi-
cation of a determination letter will be applied without retroactive effect. A Director does not have
authority under § 7805(b) to limit the revocation or modification of the determination letter.
Therefore, if the Field office proposes to revoke or modify a determination letter, the taxpayer
may request limitation of the retroactive effect of the revocation or modification by asking the
Director that issued the determination letter to seek technical advice from the Associate office. See
section 14.02 of Rev. Proc. 2014-2, this Bulletin.

### Format of request

(1) Request for relief under § 7805(b) must be made in required format. A taxpayer's
request to limit the retroactive effect of the revocation or modification of the determination letter
must be in the form of, and meet the general requirements for, a technical advice request. See
section 14.02 of Rev. Proc. 2014-2, this Bulletin. The request must also-

(a) state that it is being made under § 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief sought (including a discussion of
section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue
procedure, and any other factors as they relate to the taxpayer's particular situation); and

(d) include any documents bearing on the request.

Request for conference

(2) Taxpayer may request a conference on application of § 7805(b). When technical advice
is requested regarding the application of § 7805(b), the taxpayer has the right to a conference with
the Associate office to the same extent as does any taxpayer who is the subject of a technical
advice request. See section 14.04 of Rev. Proc. 2014-2, this Bulletin.

SECTION 14. UNDER
WHAT CIRCUMSTANCES
ARE MATTERS RE-
FERRED BETWEEN A DI-
RECTOR AND AN ASSO-
CIATE OFFICE?

Requests for determination letters

.01 If a Director receives a request for a determination letter, but it may not issue one under the provisions of this revenue procedure, the Director will forward the request to the appropriate Associate office for reply. The Field office will notify the taxpayer that the matter has been referred. Directors will also refer to the appropriate Associate office any request for a determination letter that in their judgment should have the attention of the Associate office. The Field office will notify the taxpayer that the matter has been referred.

No-rule areas

.02 If the request involves an issue on which the Service will not issue a letter ruling or determination letter, the request will not be forwarded to an Associate office. The Director will notify the taxpayer that the Service will not issue a letter ruling or a determination letter on the issue. See section 6 of this revenue procedure for a description of no-rule areas.

Requests for letter rulings

.03 If an Associate office receives a request for a letter ruling that it may not act upon under section 6 of this revenue procedure, the Associate office may, in its discretion, forward the request to the Field office that has examination jurisdiction over the taxpayer's return. The taxpayer will be notified of this action. If the request is on an issue or in an area of the type discussed in section 6 of this revenue procedure and the Service decides not to issue a letter ruling or a determination

#### Letter ruling request mis- takenly sent to a Director

letter, the Associate office will notify the taxpayer and will then forward the request to the
appropriate Field office for association with the related return.

.04 If a request for a letter ruling is mistakenly sent to a Director, the Director will return it to
the taxpayer so that the taxpayer can send it to an Associate office.

##### SECTION 15. WHAT ARE THE USER FEE RE- QUIREMENTS FOR RE- QUESTS FOR LETTER RULINGS AND DETER- MINATION LETTERS?

Legislation authorizing user fees

.01 Section 7528 was added to the Internal Revenue Code by section 202 of the Extension of the Temporary Assistance for Needy Families Block Grant Program, Pub. L. No. 108-89, amended by section 891(a) of the American Jobs Creation Act of 2004, Pub. L. 108-357, and was made permanent by section 8244 of the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007, Pub. L. No. 110-28.

Section 7528 provides that the Secretary of the Treasury or delegate (the "Secretary") shall establish a program requiring the payment of user fees for requests to the Service for letter rulings, opinion letters, determination letters, and other similar requests. The fees charged under the program are to: (1) vary according to categories or subcategories established by the Secretary; (2) be determined after taking into account the average time for, and difficulty of, complying with requests in each category or subcategory; and (3) be payable in advance. The Secretary is to provide for exemptions and reduced fees under the program as the Secretary determines to be appropriate, but the average fee applicable to each category or subcategory must not be less than the amount specified in § 7528(b)(3).

Requests to which a user fee applies

.02 In general, user fees apply to all requests for-

(1) letter rulings (including advance consent Forms 3115, Application for Change in Account- ing Method), determination letters, and advance pricing agreements;

(2) closing agreements described in paragraph (A)(3)(d) of Appendix A of this revenue procedure and pre-filing agreements described in Rev. Proc. 2009-14, 2009-3 I.R.B. 324 (or its successor);

(3) renewal of advance pricing agreements; and

(4) reconsideration of letter rulings or determination letters.

Requests to which a user fee applies must be accompanied by the appropriate fee as determined from the fee schedule provided in Appendix A of this revenue procedure. The fee may be refunded as provided in section 15.10 of this revenue procedure.

Requests to which a user fee does not apply

.03 User fees do not apply to-

(1) elections made pursuant to § 301.9100-2, pertaining to automatic extensions of time (see section 5.03 of this revenue procedure);

(2) late initial classification elections made pursuant to Rev. Proc. 2009-41, 2009-2 C.B. 439 (see section 5.03(6) of this revenue procedure);

(3) late S corporation and related elections made pursuant to Rev. Proc. 2013-30, 2013-36 I.R.B. 173 (see section 5.02 of this revenue procedure);

(4) requests for a change in accounting period or method of accounting permitted to be made
by a published automatic change revenue procedure (see section 9.01(1) of this revenue proce-
dure);

(5) information letters; or

(6) late elections under § 338 that qualify under the automatic provisions in sections 3, 4, and
5 of Rev. Proc. 2003-33, 2003-1 C.B. 803.

###### Exemptions from the user fee requirements

.04 The user fee requirements do not apply to-

(1) departments, agencies, or instrumentalities of the United States if they certify that they are
seeking a letter ruling or determination letter on behalf of a program or activity funded by Federal
appropriations. The fact that a user fee is not charged does not have any bearing on whether an
applicant is treated as an agency or instrumentality of the United States for purposes of any
provision of the Code; or

(2) requests as to whether a worker is an employee for Federal employment taxes and income
tax withholding purposes (Subtitle C of the Code) submitted on Form SS-8, Determination of
Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, or its
equivalent.

Fee schedule

.05 The schedule of user fees is provided in Appendix A of this revenue procedure. For the user
fee requirements applicable to-

(1) requests for advance pricing agreements or renewals of advance pricing agreements, see
section 4.12 of Rev. Proc. 2006-9, 2006-1 C.B. 278; or section 5.14 of Rev. Proc. 96-53,
1996-2 C.B. 375; or

(2) requests for letter rulings, determination letters, etc. under the jurisdiction of the Commis-
sioner, Tax Exempt and Government Entities Division, see Rev. Proc. 2014-8, this Bulletin.

Applicable user fee for a
request involving multiple
offices, fee categories, is-
sues, transactions, or enti-
ties

.06

(1) Requests involving several offices. If a request dealing with only one transaction involves
more than one office within the Service (for example, one issue is under the jurisdiction of the
Associate Chief Counsel (Passthroughs and Special Industries) and another issue is under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division), only one fee
applies, namely the highest fee that otherwise would apply to each of the offices involved. See
Rev. Proc. 2014-8, this Bulletin, for the user fees applicable to issues under the jurisdiction of
the Commissioner, Tax Exempt and Government Entities Division.

(2) Requests involving several fee categories. If a request dealing with only one transaction
involves more than one fee category, only one fee applies, the highest fee that otherwise would
apply to each of the categories involved.

(3) Requests involving several issues. If a request dealing with only one transaction involves
several issues, a request for a change in method of accounting dealing with only one item or
submethod of accounting involves several issues, or a request for a change in accounting period
dealing with only one item involves several issues, the request is treated as one request. Therefore,
only one fee applies, i.e., the fee that applies to the particular category or subcategory involved.
The addition of a new issue relating to the same transaction, item, or submethod will not result
in an additional fee unless the issue places the transaction, item, or submethod in a higher fee
category. So long as the issues all relate to a single transaction, a request that the Service address
one or more of the issues in a separate ruling will not result in an additional fee.

(4) Requests involving several unrelated transactions. If a request involves several unrelated
transactions, a request for a change in method of accounting involves several unrelated items or
submethods of accounting, or a request for a change in accounting period involves several

unrelated items, each transaction or item is treated as a separate request. As a result, a separate
fee will apply for each unrelated transaction, item, or submethod. An additional fee will apply if
the request is changed by the addition of an unrelated transaction, item, or submethod not
contained in the initial request. An example of a request involving unrelated transactions is a
request involving relief under § 301.9100-3 and the underlying issue.

(5) Requests involving several entities. Each entity involved in a transaction (for example, a
reorganization) that desires a separate letter ruling in its own name must pay a separate fee
regardless of whether the transaction or transactions may be viewed as related. But see section
15.07 of this revenue procedure.

Applicable user fee for re-
quests for substantially
identical letter rulings or
identical changes in
method of accounting

.07

(1) In general. The user fees provided in paragraph (A)(5) of Appendix A of this revenue
procedure apply to the situations described in sections 15.07(2) and 15.07(4) of this revenue
procedure. To assist in the processing of these user fee requests, all letter ruling requests
submitted under this section 15.07 should-

(a) except for advance consent Forms 3115, include the following typed or printed language at
the top of the letter ruling request: "REQUEST FOR USER FEE UNDER SECTION 15.07 OF
REV. PROC. 2014-1";

(b) list on the first page of the submission all taxpayers and entities, and separate and distinct
trades or businesses, including qualified subchapter S subsidiaries (QSubs) or single member
limited liability companies (single member LLCs), requesting a letter ruling (including the
taxpayer identification number and the amount of user fee submitted for each taxpayer, entity, or
separate and distinct trade or business); and

If the Service determines that the letter ruling requests do not qualify for the user fee provided
in paragraph (A)(5) of Appendix A of this revenue procedure, the Service will request the proper
fee. See section 15.09 of this revenue procedure.

(2) Substantially identical letter rulings. The user fee provided in paragraph (A)(5)(a) of
Appendix A of this revenue procedure applies to a taxpayer who requests substantially identical
letter rulings (including accounting period, method of accounting, and earnings and profits
requests other than those submitted on Form 1128, Application to Adopt, Change, or Retain a Tax
Year, Form 2553, Election by a Small Business Corporation, Form 3115, Application for Change
in Accounting Method, and Form 5452, Corporate Report of Nondividend Distributions) for either
multiple entities with a common member or sponsor, or multiple members of a common entity.
To qualify for this user fee, all information and underlying documents must be substantially
identical and all letter ruling requests must be submitted at the same time. In addition, the letter
ruling requests must-

(a) state that the letter ruling requests and all information and underlying documents are
substantially identical; and

(b) specifically identify the extent to which the letter ruling requests, information, and
underlying documents are not identical.

The reduced fee for substantially identical letter rulings is applicable to taxpayers requesting
closing agreements as described in section 2.02 of this revenue procedure, assuming they meet the
requirements described above for letter rulings.

(3) Substantially identical plans under § 25(c)(2)(B). The user fee provided in paragraph
(A)(5)(b) of Appendix A of this revenue procedure shall apply to a taxpayer who submits
substantially identical plans for administering the 95-percent requirement of § 143(d)(1) follow-
ing the submission and approval of an initial plan for administering the requirement. The request

for subsequent approvals of substantially identical plans must (1) state that a prior plan was
submitted and approved and include a copy of the prior plan and approval; (2) state that the
subsequent plan is substantially identical to the approved plan; and (3) describe any differences
between the approved plan and the subsequent plan.

(4) Identical changes in method of accounting and related § 301.9100 letter rulings. A
common parent of a consolidated group, or other taxpayer, is eligible for the user fees provided
in paragraphs (A)(5)(b) and (d) of Appendix A of this revenue procedure when requesting an
identical change in method of accounting on a single Form 3115, Application for Change in
Accounting Method, or an extension of time to file Form 3115 under § 301.9100-3 for the
identical change in method of accounting, for two or more of the following in any combination-

(a) members of that consolidated group;

(b) separate and distinct trades or businesses (for purposes of § 1.446-1(d) of that taxpayer or
member(s) of that consolidated group. Separate and distinct trades or businesses, include QSubs
and single member LLCs;

(d) controlled foreign corporations (CFCs) and noncontrolled § 902 corporations (10/50
corporations) that do not engage in a trade or business within the United States where (i) all
controlling U.S. shareholders of the CFCs and all majority domestic corporate shareholders of the
10/50 corporations, as applicable, are members of that consolidated group; or (ii) the taxpayer is
the sole controlling U.S. shareholder of the CFCs or the sole domestic corporate shareholder of
that 10/50 corporation.

To qualify as an identical change in method of accounting, the multiple entities wholly owned
or controlled by a consolidated group or other taxpayer, or separate and distinct trades or
businesses (that is, the applicants) must request to change from an identical present method of
accounting to an identical proposed method of accounting. All aspects of the requested change in
method of accounting must be identical, including the year of change, the present and proposed
methods, the underlying facts and the authority for the request, except for the § 481(a) adjust-
ments. If the Associate office determines that the requested changes in method of accounting are
not identical, additional user fees will be required before any letter ruling is issued.

The taxpayer or common parent must, for each applicant for which the change in method of
accounting is being requested, attach to the Form 3115 a schedule providing the name, employer
identification number (where applicable), and § 481(a) adjustment. If the request is on behalf of
eligible CFCs or 10/50 corporations, the taxpayer or common parent must attach a statement that
"[a]ll controlling U.S. shareholders (as defined in § 1.964-1(c)(5)(i)) of all the CFCs to which the
request relates are members of the common parent's consolidated group," "[a]ll majority domestic
corporate shareholders (as defined in § 1.964-1(c)(5)(ii)) of all the 10/50 corporations to which
the request relates are members of the common parent's consolidated group,"that "[t]he taxpayer
filing the request is the sole controlling U.S. shareholder (as defined in § 1.964-1(c)(5)) of the
CFCs to which the request relates," or "[t]he taxpayer filing the request is the sole domestic
corporate shareholder (as defined in § 1.964-1(c)(5)) of the 10/50 corporations to which the
request relates," as applicable. If the request is on behalf of eligible partnerships, the common
parent must attach a statement that "[a]ll partnerships to which the request relates are wholly-
owned by members of the common parent's consolidated group."

In the case of a § 301.9100 request for an extension of time to file a Form 3115 requesting an
identical change in method of accounting for multiple members of a consolidated group and/or
multiple separate and distinct trades or businesses of a taxpayer or member(s) of the consolidated
group, or multiple eligible CFCs or 10/50 corporations (applicants), the taxpayer or common
parent must submit the information required in the preceding paragraph in addition to the
information required by section 5.03 of this revenue procedure.

###### Method of payment

.08 Each request to the Service for a letter ruling, determination letter, advance pricing
agreement, closing agreement described in paragraph (A)(3)(d) of Appendix A of this revenue
procedure, or reconsideration of a letter ruling or determination letter must be accompanied by a
check or money order in U.S. dollars, payable to the Internal Revenue Service, in the appropriate
amount. The user fee check or money order should not be attached to the Form 2553, Election by
a Small Business Corporation, when it is filed at the Service Center. If on the Form 2553, an
electing S corporation requests a ruling to use a fiscal year under section 6.03 of Rev. Proc.
2002-39, 2002-1 C.B. 1046, the Service Center will forward the request to the Associate office.
When the Associate office receives the Form 2553 from the Service Center, it will notify the
taxpayer that the fee is due. Taxpayers must not send cash.

Effect of nonpayment or
payment of incorrect
amount

.09 If a request is not accompanied by a properly completed check or money order or is
accompanied by a check or money order for less than the correct amount, the office within the
Service that is responsible for issuing the letter ruling, determination letter, information letter,
advance pricing agreement, closing agreement, or reconsideration of a letter ruling or determi-
nation letter generally will exercise discretion in deciding whether to immediately return the
request. If a request is not immediately returned, the taxpayer will be contacted and given a
reasonable amount of time to submit the proper fee. If the proper fee is not received within a
reasonable amount of time, the entire request will then be returned. The Service will usually defer
substantive consideration of a request until proper payment has been received. The return of a
request to the taxpayer may adversely affect substantive rights if the request is not perfected and
resubmitted to the Service within 30 calendar days of the date of the cover letter returning the
request.

If a request is accompanied by a check or money order for more than the correct amount, the
request will be accepted and the amount of the excess payment will be returned to the taxpayer.

Refunds of user fee

.10 In general, the user fee will not be refunded unless the Service declines to rule on all issues
for which a ruling is requested.

(1) The following situations are examples of situations in which the user fee will not be
refunded:

(a) The request for a letter ruling, determination letter, etc. is withdrawn at any time subsequent
to its receipt by the Service, unless the only reason for withdrawal is that the Service has advised
the taxpayer that a higher user fee than was sent with the request is applicable and the taxpayer
is unwilling to pay the higher fee.

(b) The request is procedurally deficient, although accompanied by the proper fee or an
overpayment, and is not timely perfected. When there is a failure to timely perfect the request, the
case will be considered closed and the failure to perfect will be treated as a withdrawal for
purposes of this revenue procedure. See section 8.05(3) of this revenue procedure.

(c) The Associate office notifies the taxpayer that the Associate office will not issue the letter
ruling and has closed the case as a result of the taxpayer's failure to submit timely the additional
information requested by the Associate office. The failure to submit the additional information
will be treated as a withdrawal for purposes of this revenue procedure. See section 8.05(3) of this
revenue procedure (section 9.08(7) for a request for a change in method of accounting).

(d) A letter ruling, determination letter, etc. is revoked in whole or in part at the initiative of
the Service. The fee paid at the time the original letter ruling, determination letter, etc. was
requested will not be refunded.

(e) The request contains several issues, and the Service rules on some, but not all, of the issues.
The highest fee applicable to the issues on which the Service rules will not be refunded.

(f) The taxpayer asserts that a letter ruling the taxpayer received covering a single issue is
erroneous or not responsive (other than an issue on which the Associate office has declined to
rule) and requests reconsideration. The Associate office, upon reconsideration, does not agree that

Sec. 15.10
January 2, 2014

the letter ruling is erroneous or is not responsive. The fee accompanying the request for
reconsideration will not be refunded.

(g) The situation is the same as described in paragraph (f) of this section 15.10(1) except that
the letter ruling covered several unrelated transactions. The Associate office, upon reconsidera-
tion, does not agree with the taxpayer that the letter ruling is erroneous or is not responsive for
all of the transactions, but does agree that it is erroneous as to one transaction. The fee
accompanying the request for reconsideration will not be refunded except to the extent applicable
to the transaction for which the Associate office agrees the letter ruling was in error.

(h) The request is for a supplemental letter ruling, determination letter, etc. concerning a change
in facts (whether significant or not) relating to the transaction on which the Service ruled.

(i) The request is for reconsideration of an adverse or partially adverse letter ruling or a final
adverse determination letter, and the taxpayer submits arguments and authorities not submitted
before the original letter ruling or determination letter was issued.

(2) The following situations are examples of situations in which the user fee will be
refunded:

(a) In a situation to which section 15.10(1)(i) of this revenue procedure does not apply, the taxpayer
asserts that a letter ruling the taxpayer received covering a single issue is erroneous or is not responsive
(other than an issue on which the Associate office declined to rule) and requests reconsideration. Upon
reconsideration, the Associate office agrees that the letter ruling is erroneous or is not responsive. The
fee accompanying the taxpayer's request for reconsideration will be refunded.

(b) In a situation to which section 15.10(1)(i) of this revenue procedure does not apply, the
taxpayer requests a supplemental letter ruling, determination letter, etc. to correct a mistake that
the Service agrees it made in the original letter ruling, determination letter, etc. such as a mistake
in the statement of facts or in the citation of a Code section. Once the Service agrees that it made
a mistake, the fee accompanying the request for the supplemental letter ruling, determination
letter, etc. will be refunded.

(c) The taxpayer requests and is granted relief under § 7805(b) in connection with the
revocation in whole or in part, of a previously issued letter ruling, determination letter, etc. The
fee accompanying the request for relief will be refunded.

(d) In a situation to which section 15.10(1)(e) of this revenue procedure applies, the taxpayer
requests reconsideration of the Service's decision not to rule on an issue. Once the Service agrees
to rule on the issue, the fee accompanying the request for reconsideration will be refunded.

(e) The letter ruling is not issued and taking into account all the facts and circumstances,
including the Service's resources devoted to the request, the responsible Associate Chief Counsel
determines a refund is appropriate. This determination is at the sole discretion of the Associate
Chief Counsel.

(f) Refunds based on grounds listed in section 15.10(2)(a) through (d) of this revenue procedure are
approved at the branch level by a reviewer or branch chief. Refunds based on the ground listed in
section 15.10(2)(e) of this revenue procedure must be approved by the Associate Chief Counsel.

Request for reconsideration
of user fee

.11 A taxpayer who believes the user fee charged by the Service for its request for a letter ruling,
determination letter, advance pricing agreement, or closing agreement is either inapplicable or
incorrect and wishes to receive a refund of all or part of the amount paid (see section 15.10 of this
revenue procedure) may request reconsideration and, if desired, the opportunity for an oral discussion
by sending a letter to the Service at the appropriate address given in section 7.03 in this revenue
procedure. Both the incoming envelope and the letter requesting such reconsideration should be
prominently marked "USER FEE RECONSIDERATION REQUEST." No user fee is required for
these requests. The request should be marked for the attention of:

If the matter involves primarily:

Mark for the attention of.

Associate Chief Counsel (Corporate) letter ruling requests

Associate Chief Counsel (Corporate)

Associate Chief Counsel (Financial Institutions and Products) letter ruling requests

Associate Chief Counsel (Financial Institutions and Products)

Associate Chief Counsel (Income Tax and Accounting) letter ruling requests

Associate Chief Counsel (Income Tax and Accounting)

Associate Chief Counsel (International) letter ruling requests

Associate Chief Counsel (International)

Associate Chief Counsel (Passthroughs and Special Industries) letter ruling requests

Associate Chief Counsel (Passthroughs and Special Industries)

Associate Chief Counsel (Procedure and Administration) letter ruling requests

Associate Chief Counsel (Procedure and Administration)

Division Counsel/ Associate Chief Counsel (Tax Exempt and Government Entities) letter ruling requests

Deputy Division Counsel/Deputy Associate Chief Counsel () (Complete parenthetical by using the applicable designation "Employee Benefits" or "Exempt Organizations/Employment Tax/Government Entities")

Determination letter requests submitted pursuant to this revenue procedure by taxpayers under the jurisdiction of LB&amp;I

Manager, Office of Pre-Filing and Technical Services

Determination letter requests submitted pursuant to this revenue procedure by taxpayers under the jurisdiction of SB/SE, W&amp;I

The appropriate SB/SE official listed in Appendix D

Determination letter requests submitted pursuant to this revenue procedure by taxpayers under the jurisdiction of TE/GE

Director, Employee Plans Examinations Director, Exempt Organizations Examinations Director, Federal, State &amp; Local Governments Director, Tax Exempt Bonds Director, Indian Tribal Governments (Add name of Field office handling the request)

SECTION 16. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 2013-1?

Sections 6.03, 6.11, Appendix C, and Appendix E were updated, primarily to incorporate
changes to the no rule items made by Rev. Proc. 2013-32. Section 15.07(4), relating to
consolidating applications for identical changes in method of accounting and related
§ 301.9100 letter rulings, was updated and corresponding updates where made to sections
8.08(2)(a) and 9.15. A new schedule of user fees, effective February 5, 2014, is provided in
Appendix A.

SECTION 17. WHAT IS
THE EFFECT OF THIS
REVENUE PROCEDURE
ON OTHER
DOCUMENTS?

Rev. Proc. 2013-1, 2013-1 I.R.B. 1 is superseded. Rev. Proc. 2013-32, 2013-28 I.R.B. 55
is superseded in part.

## SECTION 18. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE? SECTION 19. PAPERWORK REDUCTION ACT

This revenue procedure is effective January 2, 2014.

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, 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, and Appendix E (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 determi-
nation 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.

The estimated total annual reporting and/or recordkeeping burden is 305,540 hours.

The estimated annual burden per respondent/recordkeeper varies from 1 to 200 hours, depend-
ing on individual circumstances, with an estimated average burden of 80 hours. The estimated
number of respondents and/or recordkeepers is 3,825.

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.

### DRAFTING INFORMATION

The principal author of this revenue procedure is Larry Pounders 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 Amie Colwell Breslow at
(202) 317-7700 (not a toll-free call),

(2) the Associate Chief Counsel (Financial Institutions and Products), contact Arturo Estrada
at (202) 317-4443 (not a toll-free call),

(3) the Associate Chief Counsel (Income Tax and Accounting), contact Brenda Wilson at (202)
317-7002 (not a toll-free call),

(4) the Associate Chief Counsel (Passthroughs and Special Industries), contact Kevin Babitz at
(202) 317-3100 (not a toll-free call),

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

(6) the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities),
contact Shoshanna Tanner at (202) 317-5500 (not a toll-free call), or

(7) the Associate Chief Counsel (International), contact Jeffrey Vinnik 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 D of this Revenue
Procedure;

LB&I taxpayers should contact the Office of Pre-Filing and Technical Services, LB&I;
TEGE taxpayers should refer to Revenue Procedures 2014-4 and 2014-6, this bulletin.

### INDEX References are to sections in Rev. Proc. 2014-1

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. 2014-1 for changes in method of accounting

- applicable sections of Rev. Proc. 2014-1 for accounting period

Appendix E

- automatic change revenue procedures

9.01, 9.22, Appendix E

- 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

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

7.03(1)(c)

Hand Delivery of Letter Ruling Requests

7.03(1)

No-Rule Areas.

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

7.04(2)

estate tax matters

5.06

- when to notify Associate office.

7.04

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)

Retroactive Revocation or Modification

- of determination letter.

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

7.06

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

to reopen case

8.05(3)

Where to Send

- determination letter request

7.03

- letter ruling request.

7.03, 9.05

additional information

8.05(6), 9.08(6)

hand delivery

7.03(1)

Withdrawal of Letter Ruling and Determination Letter Requests

7.07

### APPENDIX A SCHEDULE OF USER FEES

NOTE: Checks or money orders must be in U.S. dollars.
(A) FEE SCHEDULE

CATEGORY

USER FEE FOR REQUESTS RE- CEIVED PRIOR TO FEBRUARY 5,2014

USER FEE FOR REQUESTS RE- CEIVED AFTER FEBRUARY 4,

2014

(c)

Substantially identical plans under § 25(c)(2)(B)

$1,500

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 ap- proved.

NOTE: The fee charged for the first letter ruling is the highest fee appli- cable 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). 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 $9,000 fee or reduced fee, as applicable, has been paid for the first applicant.

$150

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.

(6) User

fee for information letter requests.

(7) User fee for pre-filing agreements

$50,000

(8) Tax treaty limitation of benefits. See Rev. Proc. 2006-54 for procedures for requesting competent authority assistance under tax treaties.

$27,500

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

(a)

Effective February 1, 2014:

(i) User fee for a case with 1-3 items

$5,400

(ii) Cost per each additional item beyond 3

$270

(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) and (4) of this appendix, 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), and (4) of this appendix, 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) In the Case of 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 2010 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 2010
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.

(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) Domestic partnerships and corporations (foreign and domestic), "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 "cost of goods sold" as reported on the same Federal income tax return, plus any interest income not subject to tax under § 103
(interest on state and local bonds) for that period. Domestic partnerships 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 income 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 domestic 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 domestic partnership or corporation would have reported on the
Federal income tax return if the domestic partnership was required to file or the corporation was subject to tax.

"Cost of goods sold" and "total income" are line items on Federal tax returns. For example, if the 2010 Form 1065, U.S. Return
of Partnership Income, is the most recent 12-month taxable year return filed by a domestic 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 2010 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 domestic 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), (c), or (d) 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.

(d) 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.

(e) Gross income of 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.

(4) Special rules for determining gross income. For purposes of paragraphs (B)(2) and (3) 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)(3)(d) of this appendix) of the applicants must be combined.

### 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, or Procedure and Administration) or Division Counsel/Associate
Chief Counsel (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. 2014-1, this revenue
procedure. Hereafter, all references are to Rev. Proc. 2014-1 unless otherwise noted.]

##### A. STATEMENT OF FACTS

###### 1. 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.]

### F. PROCEDURAL MATTERS

#### 1. Revenue Procedure 2014-1 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. [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.]

g. [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.]

h. [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).]

i. [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).]

j. [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).]

k. [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).]

l. [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. 2014-1 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 representative)

By:

Signature Date

Typed or printed name of
person signing request

DECLARATION: [See section 7.01(15).]

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).]

# 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

# ITEM

CIRCLE ONE

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 Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities)? See section 3 of Rev. Proc. 2014-1, this revenue procedure. For
issues under the jurisdiction of other offices, see section 4 of Rev. Proc. 2014-1. (Hereafter, all references are to
Rev. Proc. 2014-1 unless otherwise noted.)

Yes No
2. Have you read Rev. Proc. 2014-3, 2014-1 and Rev. Proc. 2014-7, 2014-1, 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 Division Counsel/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 Division Counsel/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) 317-6888 (not a toll-free call).

Yes No N/A
Page

4\. 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

5\. Are you requesting the letter ruling on a hypothetical situation or question? See section 6.12.

Yes No

6\. Are you requesting the letter ruling on alternative plans of a proposed transaction? See section 6.12.

Yes No

7\. Are you requesting the letter ruling for only part of an integrated transaction?

Yes No
Page
Yes No

8\. 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 (45) of Rev. Proc. 2014-3, 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.

9\. 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

10\. Are you requesting the letter ruling for a foreign government or its political subdivision? See section 6.07.

Yes No
Page

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

Yes No N/A

12\. 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

13\. 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

14\. 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

15\. 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).

Yes No
Page

16\. 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).

Yes No
Page

17\. 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).

Yes No
Page

18\. 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).

Yes No
Page

19\. 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).

Yes No
Page

20\. 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).

Yes No
Page

21\. 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.

Yes No
Page

22\. Have you included the required statement of relevant authorities in support of your views? See section 7.01(8).

Yes No
Page
Yes No
Pages

23\. 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).

24\. 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.

Yes No N/A
Page

25\. 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).

Yes No N/A
Page

26\. 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

27\. 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

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

Yes No N/A

29\. 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

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

Yes No N/A

31\. Are you submitting your request in duplicate if necessary? See section 7.01(16).

Yes No N/A
Page

32\. 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

33\. 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
34. 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

35\. 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 N/A
Page

36\. 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.

Yes No N/A
Page

37\. 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).

Page

Yes No N/A
38. 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

39\. 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 N/A
Page

40\. If your request involves a personal 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.

Yes No N/A
41. If your request involves a personal or business-related tax issue and you qualify for the reduced user fee
Page
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.

Yes No N/A
Page

42\. 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.

Yes No N/A
Page

43\. 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
44. 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 E, have you complied with all of the requirements
of the applicable revenue procedure or notice?

Rev. Proc.

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).

\-
Yes No N/A
45. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all of the
requirements in section 11.11?

Page

Yes No N/A
46. 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.

Page
Yes No N/A
Page
Yes No

47\. 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.

48\. 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 Division Counsel/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

Typed or printed name of
person signing checklist

Title or Authority

Date

# APPENDIX D 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. 2014-1 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:

Estate & Gift Tax
Internal Revenue Service
SE:S:SP:E&G
6340 Variel
Woodland Hills, CA 91367

# EMPLOYMENT TAXES

Requests for determination letters regarding employment tax (except for requests for determination of worker status, which
should be sent to the appropriate office listed in the instructions to Form SS-8, Determination of Worker Status for Purposes
of Federal Employment Taxes and Income Tax Withholding) should be sent to:

Chief, Employment Tax Operations
Internal Revenue Service
Attn: SE:S:SP:ET
5000 Ellin Road
Room C9-202
Lanham, MD 20706

EXCISE TAXES

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

Chief, Excise Tax Operations
Internal Revenue Service
Attn: SE:S:SP:EX
80 Daniel Street
PO Box 9502
Portsmouth, NH 03802

# APPENDIX E 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.

.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. 2013-3, 2013-1 I.R.B. 113), Rev. Proc. 84-42, 1984-1 C.B. 521 (superseded, in part,
as to no-rule areas by Rev. Proc. 2013-3, 2013-1 I.R.B. 113), 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. 2014-3, 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. 2014-3) 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).

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

Rev. Proc. 87-22, 1987-1 C.B. 718.

302, 311
Checklist questionnaire

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

302(b)(4)
Rev. Proc. 81-42, 1981-2 C.B. 611.

Checklist questionnaire
311

Rev. Proc. 86-16, 1986-1 C.B. 546.

Checklist questionnaire
332

Checklist questionnaire

See section 3.01 of Rev. Proc. 2014-3, this Bulletin, which states that the Service will not issue a
letter ruling on whether a corporate distribution qualifies for nonrecognition treatment under
section§ 332. However, the Service will issue a letter ruling addressing significant issues (within
the meaning of section 3.01 of Rev. Proc. 2014-3) presented in a transaction described in § 332.

### Checklists, guideline revenue procedures, and notices

CODE OR REGULA-
TION SECTION

103, 141 - 150, 1394,

1400L(d), 1400N(a),
1400U-1, 1400U-3,
7478, and 7871 Issu-
ance of state or local
obligations

1.166-2(d)(3)
Uniform express deter-
mination letter for
making election
Subchapter
C-Corporate
Distributions,
Adjustments,
Transfers, and
Reorganizations

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).

338
Extension of time to
make elections

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.

351
Checklist questionnaire

See section 3.01 of Rev. Proc. 2014-3, 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. 2014-3) 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).

355
Checklist questionnaire

See section 3.01 of Rev. Proc. 2014-3, 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. 2014-3) 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).

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

See section 3.01 of Rev. Proc. 2014-3, 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. 2014-3) 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).

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

Rev. Proc. 92-29, 1992-1 C.B. 748.

482
Advance pricing
agreements
521

Rev. Proc. 2006-9, 2006-1 C.B. 278, as amplified by Rev. Proc. 2006-54, 2006-2 C.B. 1035, and modified
by Rev. Proc. 2008-31, 2008-1 C.B. 1133.

Rev. Proc. 90-27, 1990-1 C.B. 514.

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

Rev. Proc. 2008-41, 2008-2 C.B. 155.

860

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

Self Determination of Deficiency Dividend

877, 2107, and

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.

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

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

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

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

1.1502-13(e)(3)

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

Consent to treat intercompany transactions on a separate entity basis and revocation of this consent

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

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

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

1552 Consent to elect or

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.

change method of allocating affiliated group's consolidated federal income tax liability

2642 Allocations of generation-skipping transfer tax exemption

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.

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

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

7702A
Closing agreement for
inadvertent non-egregious
failure to comply with
modified endowment
contract rules
7704(g)

Revocation of election

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.
2014-1, 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.

7702
Closing agreement for
failure to account for
charges for qualified
additional benefits
7702
Closing agreement for
failed life insurance
contracts

Rev. Proc. 2008-40, 2008-2 C.B. 151.

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

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. 2014-1, 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), 7.03, 7.04, 7.05, 7.07, 8.01, 8.03, 8.04, 8.05, 8.06, 10, 11, 15, 17, 18, Appendix A, and Appendix E are applicable.

Classification of liquidating trusts

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.

Earnings and profits determinations

Rev. Proc. 75-17, 1975-1 C.B. 677; Rev. Proc. 2014-1, this revenue procedure, sections 2.05, 3.03, 7, 8, and 10.05; and Rev. Proc. 2014-3, this Bulletin, section 3.01.

Estate, gift, and generation-skipping transfer tax issues

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

Intercompany transactions; election not to defer gain or loss

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

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(1) 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.

Unfunded deferred compensation

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.

Safe harbor revenue procedures

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

CODE OR REGULATION SECTION

REVENUE PROCEDURE

23 and 36C Adoption credit for foreign adoptions

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

103 and 141-150
Issuance of state or local
obligations

Rev. Proc. 93-17, 1993-1 C.B. 507 (change of use of proceeds); Rev. Proc. 97-13, 1997-1 C.B. 632, as
modified by Rev. Proc. 2001-39, 2001-2 C.B. 38 (management contracts); and Rev. Proc. 2007-47, 2007-2
C.B. 108 (research agreements).

Rev. Proc. 2005-62, 2005-2 C.B. 507.

61
Utility Cost Recovery
Securitization
Transactions

137

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

Exclusion for Employer
Reimbursements

162
Restaurant Small Wares
Costs

Rev. Proc. 2002-12, 2002-1 C.B. 374.

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

165
Theft losses from
fraudulent investment
arrangements

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).

Rev. Proc. 2002-27, 2002-1 C.B. 802.

168

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

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

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

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

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

165
Losses from corrosive
drywall

168
Depreciation of original
and replacement tires for
certain vehicles

Rev. Proc. 2003-63, 2003-2 C.B. 304.

Recovery periods of
certain tangible assets
used by wireless
telecommunication
carriers
263

263

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

Allocating success-based fees paid in business acquisitions or reorganizations

263 Electric trade and distribution property assets

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

263A

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

Safe harbor methods for certain motor vehicle dealerships

280A

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

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

280B

Rev. Proc. 95-27, 1995-1 C.B. 704.

Certain structural modifications to a building not treated as a demolition

446 Film producer's treatment of certain creative property costs

Rev. Proc. 2004-36, 2004-1 C.B. 1063.

446 Bank's treatment of uncollected interest

Rev. Proc. 2007-33, 2007-1 C.B. 1289.

448

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

Nonaccrual-experience method - book safe harbor method

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

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

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

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

471 Estimating inventory shrinkage

Rev. Proc. 98-29, 1998-1 C.B. 857.

471

Rev. Proc. 2002-17, 2002-1 C.B. 676.

Valuation of automobile dealer vehicle parts inventory

471

Rev. Proc. 2003-20, 2003-1 C.B. 445.

Valuation of remanufactured cores

471

Rev. Proc. 2006-14, 2006-1 C.B. 350.

Valuation of heavy equipment dealer parts inventory

471

Rev. Proc. 2008-43, 2008-2 C.B. 186.

Rolling-average method of accounting for inventories

475

Rev. Proc. 2007-41, 2007-1 C.B. 1492.

Eligible positions

584(a)

Rev. Proc. 92-51, 1992-1 C.B. 988.

Qualification of a proposed common trust fund plan

642(c)(5)

Rev. Proc. 88-53, 1988-2 C.B. 712.

Qualification of trusts as pooled income funds

664

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

Charitable remainder trusts

664(d)(1)

Rev. Proc. 2003-53, 2003-2 C.B. 230; Rev. Proc. 2003-54, 2003-2 C.B. 236; Rev. Proc. 2003-55, 2003-2

Qualification of trusts as charitable remainder annuity trusts

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.

664(d)(2) and (3)

Rev. Proc. 2005-52, 2005-2 C.B. 326; Rev. Proc. 2005-53, 2005-2 C.B. 339; Rev. Proc. 2005-54, 2005-2

Qualification of trusts as charitable remainder unitrusts

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.

832

Rev. Proc. 2002-46, 2002-2 C.B. 105.

Insurance company premium acquisition expenses

856(c)

Rev. Proc. 2003-65, 2003-2 C.B. 336.

Certain loans treated as real estate assets

860H

Rev. Proc. 2001-12, 2001-1 C.B. 335.

Transfers of ownership interests in Financial

Asset Securitization

Investment Trusts

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

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

Rev. Proc. 96-54, 1996-2 C.B. 386.

25.2702-5(c)

Qualified Personal
Residence Trust

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

Rev. Proc. 2005-19, 2005-1 C.B. 832.

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

SUBJECT MATTERS

Certain rent-to-own
contracts treated as leases

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.

2702(a)(3)(A) and

Rev. Proc. 2003-42, 2003-1 C.B. 993.

Rev. Proc. 92-101, 1992-2 C.B. 579.

REVENUE PROCEDURE

Rev. Proc. 95-38, 1995-2 C.B. 397.

# Automatic change in accounting period revenue procedures

.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.

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

## Rev. Proc. 2014-2

TABLE OF CONTENTS

SECTION 1. PURPOSE AND AUTHORITY

.01 Description of purpose

.02 Updated annually

.03 Delegation authority

SECTION 2. DEFINITIONS.

.01 Operating division

.02 Director

.03 Territory Manager

.04 Appeals officer

.05 Taxpayer

.06 Associate office

.07 Field office

.08 Field counsel

SECTION 3. THE NATURE OF TECHNICAL ADVICE.

.01 When advice furnished

.02 TAM may be requested even if previous TAM on same matter was issued

.03 Taxpayer participation

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

.01 Alcohol, tobacco, and firearms taxes

.02 Tax exempt and government entities

.03 Farmers' cooperatives.

.04 Issues under § 301.9100

.05 Frivolous issues

.06 Issues in a docketed case

.07 Collection issues

SECTION 5. INITIATING A REQUEST FOR TECHNICAL ADVICE.

.01 Initiating a request for technical advice

.02 Taxpayer may request technical advice

.03 Appeal of field office denial of TAM request.

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

SECTION 6. PRE-SUBMISSION CONFERENCES.

.01 Purpose

.02 Pre-submission conferences are mandatory

.03 Actions before a pre-submission conference

.04 Initiating a pre-submission conference

.05 Manner of transmitting pre-submission materials

.06 Scheduling the pre-submission conference

.07 Pre-submission conferences may be conducted in person

.08 Pre-submission conference may not be taped

.09 Discussion of substantive issues is not binding on the Service

.10 New issues may be raised at pre-submission conference

SECTION 7. SUBMITTING THE REQUEST FOR TECHNICAL ADVICE.

.01

Memorandum of issues, facts, law, and arguments

.02

Transaction involving multiple taxpayers

.03

Foreign laws and documents: submission of relevant foreign laws and documents in the official language and in English

.04

Statement regarding interpretation of relevant income tax or estate tax treaty

.05

Statement recommending information to be deleted from public inspection

.06

Preparation of the memorandum; resolution of disagreements

.07

Transmittal Form 4463, Request for Technical Advice

100

.08

All supporting and additional documents

100

.09

Number of copies of request to be submitted

100

.10

Power of attorney

100

.11

Service not barred from issuing 30-day letter while a TAM request is pending

100

SECTION

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

100

.01

Assignment and initial review by Associate office attorney

100

.02

Other forms of guidance

101

.03

Initial acknowledgment and processing

101

.04

Deficiencies in request leading to return

101

.05

Initial discussion

101

.06

If additional information requested

101

.07

Taxpayer request for extension of time to submit additional information

101

.08

Where to send additional information

101

.09

Tentative conclusions

102

SECTION 9. TAXPAYER CONFERENCES.

102

.01

Notification of conference

102

.02

Scheduling conference

102

.03

Taxpayer may request extensions

102

.04

One conference of right

102

.05

Additional conferences may be offered

103

.06

Additional information submitted after the conference

103

.07

Normally conducted in person

103

.08

Service makes only tentative recommendations

103

.09

Conference may not be taped

103

SECTION 10. PREPARATION OF THE TECHNICAL ADVICE

103

.01

Reply consists of two parts

103

.02

Status of a request

104

.03

Section 6110

104

.04

Opportunity for field counsel review

104

.05

Copy of preliminary TAM to field office and field counsel

104

.06

Routing of reply

104

.07

Copy of final TAM to field counsel and Division Counsel

104

.08

Reconsideration

104

.09

Discussing contents with the taxpayer

105

.10

TAM takes effect when taxpayer receives a copy

105

.11

Taxpayer may protest deletions not made

105

.12

Public inspection in civil fraud or criminal investigation cases

105

SECTION

11. WITHDRAWAL OF REQUESTS FOR TECHNICAL ADVICE

105

.01

Taxpayer notified

105

.02

Acknowledgment of withdrawal

105

.03

Associate office may decide not to provide a TAM

106

.04

Associate office may provide views

106

SECTION 12. USE OF THE TECHNICAL ADVICE.

106

.01 Service generally applies advice in processing taxpayer's case

106

SECTION 13. RETROACTIVITY AND RELIANCE.

106

.01 Usually applies retroactively

106

.02 Revocation or modification of an earlier letter ruling or TAM

106

.03 Continuing action or series of actions

106

.04 Other taxpayers

107

SECTION 14. HOW MAY RETROACTIVE EFFECT BE LIMITED?

107

.01 Request for relief under § 7805(b)

107

.02 Form of request for relief-in general

107

.03 Form of request for relief-continuing transaction before examination of return

107

.04 Taxpayer's right to a conference

107

.05 Reconsideration of request for relief under § 7805(b)

107

SECTION 15. SIGNIFICANT CHANGES MADE TO REV. PROC. 2013-2

107

SECTION 16. EFFECT ON OTHER DOCUMENTS

108

SECTION 17. EFFECTIVE DATE

108

DRAFTING INFORMATION

108

INDEX

109

### SECTION 1. PURPOSE AND AUTHORITY

Description of purpose

.01 Technical advice. This revenue procedure explains when and how 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), and the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) provide technical advice memoranda (TAMs) to a Director or an Appeals Area Director. It also explains the rights that a taxpayer has when a field office requests a TAM regarding a tax matter. Rev. Proc. 2013-2 superseded.

Updated annually

.02 This revenue procedure is updated annually as the second revenue procedure of the year, but may be modified during the year.

Delegation authority

.03 The provisions of this revenue procedure apply if the authority normally exercised by the Director has been properly delegated to another official.

SECTION 2. DEFINITIONS

Operating division

.01 The term "operating division" means the (1) Large Business &amp; International Division (LB&amp;I); (2) the Small Business/Self-Employed Division (SB/SE); (3) the Wage and Investment Division (W&amp;I); and (4) the Tax Exempt and Government Entities Division (TE/GE).

Director

.02 The term "Director" means (1) the Director, Field Operations (LB&amp;I) for the taxpayer's industry; (2) a Territory Manager, Field Compliance (SB/SE); (3) the Director, Compliance (W&amp;I); (4) the Director, International Compliance, Strategy and Policy; (5) the Director, Employee Plans Examinations; (6) the Director, Exempt Organizations Examinations; (7) the Director, Federal, State &amp; Local Governments; (8) the Director, Tax Exempt Bonds; (9) the Director, Indian Tribal Governments; (10) the Appeals Area Director;

(11) the Appeals Director, Domestic Operations, (12) the Appeals Director, International Operations; or (13) any official to whom the authority normally exercised by a Director has properly been delegated.

Territory Manager

.03 The term "Territory Manager" means (1) a Territory Manager (LB&amp;I); (2) a Territory Manager, Examination (SB/SE); (3) a Territory Manager, Specialty (SB/SE); (4) the Director, Compliance (W&amp;I); (5) the Employee Plans Examinations Area Manager; (6) the Exempt Organizations Examinations Area Manager; (7) the Employee Plans Determinations Manager; (8) the Exempt Organizations Determinations Manager; (9) the Group Manager, Federal, State &amp; Local Governments; (10) program managers within Tax Exempt Bonds; (11) the Manager, Field Operations, Tax Exempt Bonds; or (12) the Group Manager, Indian Tribal Governments.

Appeals officer

.04 The term "Appeals officer" means the Appeals officer assigned to the taxpayer's case and includes an Appeals Team Case Leader or settlement officer.

Taxpayer

.05 The term "taxpayer" means any person subject to any provision of the Internal Revenue Code, including an issuer of obligations the interest on which is excluded from gross income under§103, issuers of other bonds that provided a tax subsidy, and the taxpayer's representatives.

Associate office

.06 The term "Associate office" means (1) the Office of Associate Chief Counsel (Corporate); (2) the Office of Associate Chief Counsel (Financial Institutions and Products); (3) the Office of Associate Chief Counsel (Income Tax and Accounting); (4) the Office of Associate Chief Counsel (International); (5) the Office of Associate Chief Counsel (Passthroughs and Special Industries); (6) the Office of Associate Chief Counsel (Procedure and Administration); or (7) the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities).

Field office

.07 The term "field office" means personnel in any examination or Appeals office.

Field counsel

.08 The term "field counsel" means any attorney assigned to the Division Counsel for an operating division who is not a member of Division Counsel Headquarters.

SECTION 3. THE NATURE OF TECHNICAL ADVICE

When advice furnished

.01 Technical advice is advice furnished by an Associate office in a memorandum that responds to any request, submitted under this revenue procedure, for assistance on any technical or procedural question that develops during any proceeding before the IRS. The field office may request a TAM when the application of the law to the facts involved is unclear. The question must be on the interpretation and proper application of tax laws, tax treaties, regulations, revenue rulings, notices, or other precedents to a specific set of facts that concerns the treatment of an item in a period under examination or appeal. A TAM may not be requested for prospective or hypothetical transactions. Proceedings before the IRS include: (1) the examination of a taxpayer's return; (2) the consideration of a taxpayer's claim for credit or refund; (3) any matter under examination or in Appeals pertaining to tax- exempt bonds, tax credit bonds, or mortgage credit certificates; and (4) any other matter involving a specific taxpayer under the jurisdiction of a Director. Technical advice does not include any oral legal advice or any written legal advice furnished to the field office that is not submitted and processed under this revenue procedure.

TAM may be requested even if previous TAM on same matter was issued

.02 A Director may raise an issue in any tax period, even if a TAM was requested and furnished for the same or similar issue for another tax period. The field office may also request a TAM on an issue even if Appeals disposed of the same or similar issue for another tax period of the same taxpayer.

Taxpayer participation SECTION 4. TYPES OF ISSUES NOT SUBJECT TO THIS PROCEDURE

.03 Taxpayers will be afforded an opportunity to participate in the TAM process. Taxpayer participation is preferred but not required in order to process a request for technical advice. A taxpayer's failure to participate in stages identified as "material," however, will constitute waiver of the right to the conference described in Section 9. Under no circumstances will a taxpayer be treated as having waived its right to see the issued TAM or having waived its rights regarding disclosure and deletions described in Section 10.

Alcohol, tobacco, and firearms taxes

.01 The procedures for obtaining technical advice specifically applicable to federal alcohol, tobacco, and firearms taxes under subtitle E of the Code are currently under the jurisdiction of the Alcohol and Tobacco Tax and Trade Bureau of the Treasury Department.

Tax exempt and government entities

.02 The procedures for requesting technical advice on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, are found in Rev. Proc. 2014-5, of this Bulletin. The procedures under Rev. Proc. 2014-2, however, must be followed to request technical advice on issues pertaining to tax-exempt bonds, tax credit bonds, direct payment bonds, Indian tribal governments, federal, state, or local governments, mortgage credit certificates, deferred compensation plans under § 457, and sales of stock to employee stock ownership plans or eligible worker-owned cooperatives under § 1042.

Farmers' cooperatives

.03 Even though the Associate Chief Counsel (Passthroughs and Special Industries) has jurisdiction over issues arising under § 521, the procedures under Rev. Proc. 2014-5, of this Bulletin, and Rev. Proc. 2014-9 in I.R.B. 2014-2 must be followed.

Issues under § 301.9100

.04 A request for an extension of time for making an election or other application for relief under § 301.9100-3 of the Procedure and Administration Regulations is not submitted as a request for technical advice. Instead, the request must be submitted as a request for a letter ruling, even if submitted after the examination of the taxpayer's return has begun or after the issues in the return are being considered in Appeals or a federal court. Therefore, a request under § 301.9100 should be submitted under Rev. Proc. 2014-1, of this Bulletin, and the payment of the applicable user fee is determined under Appendix A of Rev. Proc. 2014-1.

Frivolous issues

.05 Associate offices will not issue a TAM on frivolous issues. The field office will deny a taxpayer's request for a TAM if it involves frivolous issues. For purposes of this revenue procedure, a "frivolous issue" is one without basis in fact or law or one asserting a position held by revenue ruling, case law, or any court to be frivolous or groundless. Examples of frivolous or groundless issues include but are not limited to: (1) positions that espouse frivolous "constitutional" claims, such as claims that the requirement to file tax returns and pay taxes constitutes an unreasonable search barred by the Fourth Amendment, violates Fifth and Fourteenth Amendment protections of due process, violates Thirteenth Amendment protections against involuntary servitude, or is unenforceable because the Sixteenth Amendment does not authorize nonapportioned direct taxes or because it was never ratified; and (2) positions asserting that income taxes are voluntary, that the term "income" is not defined in the Internal Revenue Code, or that the preparation and filing of income tax returns violates the Paperwork Reduction Act. Additional examples of frivolous or groundless issues may be found in IRS publications and other guidance (including, but not limited to, section 6.10 of Rev. Proc. 2014-1, Notice 2010-33, and I.R.M. Section 4.10.12.1.1).

Issues in a docketed case

.06 A field office may not request technical advice on an issue if the same issue of the same taxpayer (or of a related taxpayer within the meaning of § 267 or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504) is in a docketed case for any taxable year. If a case is docketed for an estate tax issue of a taxpayer while a request for technical advice on the same issue of the same taxpayer is pending, the Associate office may issue the TAM only if the appropriate Appeals officer and field counsel agree, by memorandum, to the issuance of the TAM.

Sec. 4.06
January 2, 2014

Collection issues SECTION 5. INITIATING A REQUEST FOR TECHNICAL ADVICE

.07 The Associate Chief Counsel (Procedure and Administration) does not provide technical advice on matters arising under the Internal Revenue Code and related statutes and regulations that involve the collection of taxes (including interest and penalties). With respect to such matters, the Associate Chief Counsel (Procedure and Administration) may issue alternative forms of advice.

Initiating a request for technical advice

.01 Because technical advice is issued to assist field offices, it is the field office that determines whether to request it. In determining whether to request technical advice, the field office should consider whether other forms of guidance, e.g., published guidance, generic advice, or some other form of advice, would be more appropriate. Before requesting technical advice, however, the field office must request assistance and a recommendation from field counsel. If the field office disagrees with that recommendation, the field office must seek reconciliation with field counsel through their respective supervisors. Any request for technical advice must be approved in writing by a Director.

Taxpayer may request technical advice

.02 While a case is under the jurisdiction of a Director, a taxpayer may request that an issue be referred to the Associate office for technical advice. The request may be oral or written and should be directed to the field office. If the field office decides that a taxpayer's request for referral of an issue to the Associate office for a TAM is unwarranted, the field office will notify the taxpayer. A taxpayer's request for referral of an issue for technical advice will not be denied merely because the Associate office has already provided legal advice other than a TAM to the field office on the matter.

Appeal of field office denial of TAM request

.03 The taxpayer may appeal the field office's denial of the taxpayer's TAM request by submitting to the field office, within 30 calendar days after notification that the request was denied, a written statement of the reasons why the matter should be referred to the Associate office. The statement should include a description of all pertinent facts (including any facts in dispute); a statement of the issue that the taxpayer would like to have addressed; a discussion of any relevant statutory, regulatory, or administrative provisions, tax treaties, case law, or other authority; and an explanation of the taxpayer's position and the need for technical advice. Any extensions of the 30-day period must be requested in writing and must be approved by the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations. Decisions on any extensions by the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations are final and may not be appealed. Upon receipt, the field office will refer the taxpayer's written statement, along with the field office's statement of why the issue should not be referred to the Associate office for technical advice, to the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations for decision. The Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations will determine whether the issue should be referred for technical advice on the basis of the statements of the field office and the taxpayer. No conference will be held with the taxpayer or the taxpayer's representative. If the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations determines that a TAM is not warranted, the taxpayer will be informed in writing of the proposed denial of the request and the reasons for the denial (unless doing so would prejudice the Government's interests).

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

.04 The taxpayer may not appeal the decision of the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations not to request a TAM. If the taxpayer does not agree with the proposed denial, all data on the issue for which a TAM has been sought, including the taxpayer's written request and statements, will be submitted for review to the Director, LB&amp;I; the Director, Examination, SB/SE; the Director, Specialty Tax, SB/SE; the Director, Compliance, W&amp;I; the Director, Federal, State &amp; Local Governments; the Director, Tax Exempt Bonds; the Director, Indian Tribal Governments; or the Appeals Director, Tax Policy and Procedure (Exam). Review of the proposed denial will be based solely on the written record. No conference will be held with the taxpayer or the taxpayer's representative. The person responsible

Sec. 5.04
January 2, 2014

for review may consult with the Associate office, if appropriate, and will notify the field office
whether the proposed denial of the taxpayer's request is approved or denied within 45 days of
receiving all information. The field office will then notify the taxpayer. While the matter is under
review, the field office will suspend any final decision on the issue (except when the delay would
prejudice the Government's interests). If the request for technical advice has been denied because
the issue is frivolous as described in 4.05 above, this review process is not available.

# SECTION 6. PRE- SUBMISSION CONFERENCES

Purpose

.01 A pre-submission conference helps the field office, field counsel, the taxpayer, and the
Associate office agree on the appropriate scope of the request for technical advice and the factual
information and documents that must be included in the request. A pre-submission conference is
not an alternative procedure for addressing the merits of the substantive positions advanced by
the field office or by the taxpayer. During the pre-submission conference, the parties should
discuss the framing of the issues and the background information and documents that should be
included in the formal submission of the request for technical advice.

Pre-submission conferences
are mandatory

.02 Pre-submission conferences include the taxpayer and representatives from the field office,
field counsel, and the Associate office. These conferences are mandatory because they promote
expeditious processing of requests for technical advice. If a request for technical advice is
submitted without first holding a pre-submission conference, the Associate office will return the
request for advice. Requests for technical advice can proceed even if a taxpayer declines to
participate in a pre-submission conference.

Actions before a pre-
submission conference

.03 Before requesting a pre-submission conference, the field office and the taxpayer must
exchange proposed statements of the pertinent facts and issues. The proposed statements should
include any facts in dispute, the issues that the parties intend to discuss, any legal analysis and
supporting authorities, and any other background information that the parties believe would
facilitate the Associate office's understanding of the issues to be discussed during the conference.
Prior to the scheduled pre-submission conference, the field office and the taxpayer must submit to
the Associate office their respective statements of pertinent facts and issues. The legal analysis
provided in the parties' statements should be sufficient to enable the Associate office to be
reasonably informed about the subject matter. Failure of the taxpayer to provide a statement of
pertinent issues and facts shall not be allowed to unduly delay the scheduling of the pre-
submission conference. If it is not provided within a reasonable period of time, the conference
may be scheduled without the statements.

The field office or the taxpayer must ensure that the Associate office receives a copy of any
required power of attorney. Form 2848, Power of Attorney and Declaration of Representative
(Rev. March 2012), should be used. See Conference and Practice Requirements of the Statement
of Procedural Rules (26 C.F.R. §§ 601.501-601.509 (2012)). The assigned branch of the
Associate office must receive the pre-submission materials at least 10 business days before the
conference is to be held.

Initiating a pre-submission
conference

.04 A request for a pre-submission conference must be submitted in writing by the field office,
with the assistance of field counsel. The request should identify the Associate office expected to
have jurisdiction over the request for a TAM and should include a brief explanation of the
primary issue so that an assignment to the appropriate branch of an Associate office can be
made. If the request is submitted by Appeals, field counsel assignments will be subject to the ex
parte rules set forth in section 1001(a)(4) of the Internal Revenue Service Restructuring and
Reform Act of 1998, Pub. L. No. 105-206, and Rev. Proc. 2012-18, 2012-10 I.R.B. 455. If the
request involves an issue under the office of the Director, Abusive Tax Avoidance Transactions
(ATAT) Examination, SB/SE, an issue under the office of the Director, Office of Tax Shelter
Analysis (OTSA), LB&I, or an industry issue under the Office of Pre-Filing and Technical
Guidance, LB&I, then the field office and field counsel should coordinate with the technical
advisor and field counsel contact. If the request is from Appeals and involves a coordinated issue

or emerging issue under the Appeals Domestic or International Operations or Appeals Coordinated Issue (ACI) Program, the Appeals officer must coordinate with the Appeals Domestic Operations or International Operations Technical Specialist.

Manner of transmitting pre- submission materials

.05 To obtain the protection of taxpayer information offered by the Chief Counsel Intranet firewall, the pre-submission materials must be electronically transmitted by field counsel to the Technical Services Support Branch (TSS4510). TSS4510 will ensure delivery of the pre- submission materials to the appropriate Associate office. The TSS4510 email box cannot accept encrypted mail. If documents are not electronically available, or if documents cannot reasonably be transmitted electronically, the request may be sent by fax to TSS4510 at 202-317-6718. If the documents are sent by fax, the Director must also confirm the request in writing. Email or fax may be used to confirm the request. The Associate office will confirm receipt of the fax within one business day after receipt by the Associate office. Copies of the taxpayer's statement of deletions and power of attorney (Form 2848, Power of Attorney and Declaration of Representative (Rev. March 2012)), should be transmitted by fax to the Associate office attorney assigned to the case. The field office should send the original of the materials sent by fax, and any supporting materials, to the Associate office attorney assigned to the case by express mail or private delivery service in order to avoid any delays in regular mail.

Scheduling the pre- submission conference

.06 After the materials have been received, the branch of the Associate office responsible for conducting the pre-submission conference will contact the taxpayer, the field office, and field counsel to arrange a mutually convenient time for the parties to participate in the conference. The conference generally should be held within 15, but not more than 30, calendar days after the field office is contacted.

Pre-submission conferences may be conducted in person

.07 Although pre-submission conferences are generally conducted by telephone, the parties may choose to conduct the conference in person.

Pre-submission conference may not be taped

.08 No tape, stenographic, or other verbatim recording of a conference may be made by any party.

Discussion of substantive issues is not binding on the Service

.09 Any discussion of substantive issues at a pre-submission conference is advisory only, is not binding on the Service or on the Office of Chief Counsel, and cannot be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).

New issues may be raised at pre-submission conference

.10 During the pre-submission conference, the Office of Chief Counsel may raise new issues in addition to those submitted by the field office and the taxpayer.

SECTION 7. SUBMITTING THE REQUEST FOR TECHNICAL ADVICE

Memorandum of issues, facts, law, and arguments

.01 Every request for technical advice must include a memorandum that describes the facts, issues, applicable law, and arguments supporting the taxpayer's position on the issues and the field office's position on the issues. The field office will prepare this statement with the assistance of field counsel. The memorandum must include a statement of all the facts and the issues. If the taxpayer and the field office disagree about ultimate findings of fact or about the relevance of facts, all of the facts should be included with an explanation that highlights the areas of disagreement. The memorandum must include an explanation of the taxpayer's position. This explanation must include a discussion of any relevant statutory provisions, tax treaties, court decisions, regulations, revenue rulings,

revenue procedures, notices, and any other authority supporting the taxpayer's position. The
memorandum must also include a similar explanation of the field office's position. Both the field
office and the taxpayer should comment on any existing or pending legislation, tax treaties,
regulations, revenue rulings, revenue procedures, or court decisions contrary to their respective
positions. If either party determines that there are no authorities contrary to its position, that
statement should be noted in the memorandum. The field office submits the request for technical
advice.

When the taxpayer initiates the request for technical advice, the taxpayer must submit a written
statement that incorporates the information provided above and the reasons for requesting
technical advice. When the Service initiates the request for technical advice, the field office
should notify the taxpayer that the Service is requesting technical advice and provide the taxpayer
with a copy of the arguments supporting the Service's position. The taxpayer has 5 calendar days
to state, in writing, any factual disagreement. The field office will make every effort to reach
agreement on the facts and specific points at issue. The taxpayer is encouraged to submit a
written statement with an explanation of the taxpayer's position and a discussion of the statutory
provisions that support the taxpayer's position.

## Transaction involving multiple taxpayers

.02 If the subject matter of the request involves a transaction among multiple taxpayers, the
Associate office may provide a single TAM, but only if each taxpayer agrees to participate in the
process, including the furnishing of Forms 8821, or other written taxpayer consent.

Foreign laws and
documents: submission of
relevant foreign laws and
documents in the official
language and in English

.03 If applicable, the request for technical advice must include a copy of the relevant parts of all
foreign laws, including statutes, regulations, administrative pronouncements, and any other relevant
legal authority. This copy must be in the official language of the country involved and must be
produced from an official publication of the foreign government or another widely available, generally
accepted publication. If English is not the official language of the country involved, the submission
must also include a copy of an English translation of the relevant parts of all foreign laws. The
translation must be from an official publication of the foreign government or another widely available,
generally accepted publication or from a certified English translation submitted in accordance with
Section 7.03(2) of this revenue procedure. The taxpayer or the field office must identify the title and
date of publication, including updates, of any widely available, generally accepted publication used by
the taxpayer or its qualified translator as a source for the relevant parts of the foreign law. The
taxpayer and the field office must inform the Associate office of the implications of any authority
believed to interpret the foreign law, such as pending legislation, treaties, court decisions, notices, and
administrative decisions.

(1) If the interpretation of a foreign law or foreign document is a material fact, the Associate office,
at its discretion, may refuse to provide a TAM. This section applies whether or not the field office and
the taxpayer dispute the interpretation of a foreign law or foreign document. The interpretation of a
foreign law or foreign document means making a judgment about the import or effect of the foreign
law or document that goes beyond its plain meaning.

(2) If applicable, a request for technical advice must include an accurate and complete certified
English translation of the relevant parts of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, or other documents in a language other than English. If the taxpayer
or the field office chooses to submit certified English translations of foreign laws, those translations are
to be based on an official publication of the foreign government or another widely available, generally
accepted publication. In either case, the translations must be that of a qualified translator and are to be
attested to by the translator. The attestation must contain: (1) the attestant's name and address; (2) a
statement that the translation submitted is a true and accurate translation of the foreign language
document or law; and (3) a statement about the attestant's qualifications as a translator and that
attestant's qualifications and knowledge regarding tax matters or any foreign law translated if the law
is not a tax law.

.04 A request for technical advice involving the interpretation of a substantive provision of a
relevant income tax or estate tax treaty must include a written statement addressing whether: (1) the
tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue for the taxpayer,
a related taxpayer (within the meaning of § 267 or a member of an affiliated group of which the

Statement regarding
interpretation of relevant
income tax or estate tax
treaty
Sec. 7.04
January 2, 2014

taxpayer is also a member within the meaning of § 1504 (related taxpayer), or any predecessor; (2)
the same or similar issue for the taxpayer, a related taxpayer, or any predecessor, 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 (3) the same or similar issue for the taxpayer, a related
taxpayer, or any predecessor, is being considered by the competent authority of the treaty jurisdiction.

Statement recommending
information to be deleted
from public inspection

.05 Every request for technical advice must include a statement of proposed deletions from public
inspection. The text of TAMs are open to public inspection under § 6110(a). The Service deletes
certain information from the text before it is made available to the public in order to protect the
privacy of taxpayers. To help the Service make the necessary deletions, the taxpayer must provide a
statement indicating the deletions desired. A taxpayer who wants only names, addresses, and
identifying numbers deleted should state this in the deletion statement. A taxpayer who wants more
information deleted must provide a copy of the TAM request and supporting documents on which the
taxpayer has placed brackets around the material to be deleted plus a statement indicating the statutory
basis under § 6110(c) for each proposed deletion. The deletion statement must not appear in the
memorandum described in Section 7.01 of this revenue procedure. Instead, the deletion statement is to
be made in a separate document that is signed and dated by the taxpayer or the taxpayer's authorized
representative. A stamped signature or faxed signature is not permitted. If the deletion statement is not
submitted, the taxpayer will be notified and advised by the field office that the statement is required. If
the deletion statement is not received within 10 calendar days after the notification, the field office will
use its best effort to provide the Associate office with an appropriate deletion statement. The taxpayer
should follow this same process to propose deletions from any additional information submitted after
the initial request for a TAM. An additional deletion statement is not required with each submission of
additional information if the taxpayer's initial deletion statement requests that only names, addresses,
and identifying numbers are to be deleted and the taxpayer wants only the same information deleted
from the additional information.

Preparation of the
memorandum; resolution of
disagreements

.06 The field office prepares the memorandum described in Section 7.01 of this revenue procedure
with the assistance of field counsel and sends it to the taxpayer by mail or fax transmission. The
taxpayer then will have 5 calendar days from the date of mailing or fax transmission to respond by
providing a written statement specifying any disagreement on the facts and issues. A taxpayer who
needs more than 5 calendar days must submit a written request for an extension of time, subject to the
approval of the field office. The field office will make a determination on the request for extension as
soon as reasonably possible. The request for extension will be considered denied unless the field office
informs the taxpayer otherwise. The decision of the field office on whether to approve an extension,
and the length of any extension granted, is final and may not be appealed. After the taxpayer's
response is received by the field office, the parties will have 10 calendar days to resolve remaining
disagreements. If all disagreements about the statement of facts and issues are resolved, then the field
office will prepare a single statement of those agreed facts and issues. If disagreements continue, both
the taxpayer's set of facts and issues and the field's sets of facts and issues will be forwarded to the
Associate office.

The field office, with the assistance of field counsel, will prepare a memorandum for the
Associate office highlighting the material factual differences, and provide a copy to the taxpayer
for review. The taxpayer may respond in writing to the memorandum highlighting material
factual differences. Examination may revise the memorandum described in Section 7.01 of this
revenue procedure in response to the taxpayer's comments. This memorandum will be forwarded
with the initial request for technical advice. The taxpayer's statement of facts and issues must be
accompanied by the following declaration: "Under penalties of perjury, I declare that I have
examined this information, including accompanying documents, and, to the best of my
knowledge and belief, the information contains all the relevant facts relating to the request for
technical advice, and such facts are true, correct, and complete." This declaration must be signed
in accordance with the requirements in section 7.01(15)(b) of Rev. Proc. 2014-1. The field office
must submit this declaration with the initial request for technical advice. If no agreement
regarding the facts is reached, the Associate office may rely on the facts presented by the field
office. The field office will offer the taxpayer an opportunity to participate in the development of
the TAM. If the taxpayer participates in the process, the field office will continue to offer the
taxpayer the opportunity to participate. If the taxpayer does not participate in a material stage of

Sec. 7.06
January 2, 2014

the process after being offered an opportunity, the Associate office will nonetheless process the
request, and the taxpayer will have waived the right to participate in the development and
issuance of the TAM, including the right to the conference described in section 9. A taxpayer's
failure to participate in the development of the memorandum will be considered a failure to
participate in a material stage of the TAM process.

Under no circumstances will a taxpayer be treated as having waived its right to see the issued
TAM or having waived its rights regarding disclosure and deletions described in Section 10.

Transmittal Form 4463,
Request for Technical
Advice

.07 The field counsel, with whom the TAM request was coordinated, must use Form 4463,
Request for Technical Advice, for submitting a request for a TAM through TSS4510 to the
Associate office. While the field office is responsible for preparing Form 4463, field counsel must
submit the Form 4463 for a TAM request to the TSS4510 email address. To the extent feasible,
the accompanying documents should also be submitted to the TSS4510 email address, followed
by hard copy upon the request of the assigned branch of the Associate office.

All supporting and
additional documents

.08 Field counsel should send additional or supporting documents that are not available in
electronic form by fax to TSS4510 at 202-317-6718 or by express mail or private delivery
service to the following address to avoid any delays in regular mail:

Internal Revenue Service

Attn: CC:PA:LPD:TSS,
Room 5336 1111 Constitution Avenue, NW
Washington, DC 20224

Whenever possible, all documents should contain the case number and name of the Associate
office attorney assigned to the pre-submission conference for the TAM request.

The field office must indicate on the Form 4463 the proper mailing address of the Director to
whom the Associate office should mail a copy of its reply to the TAM request under Section
10.06 of this revenue procedure.

Number of copies of request
to be submitted

.09 The field office must submit one paper copy of the request for a TAM to the address in
Section 7.08 of this revenue procedure. If the TAM relates to a SB/SE, W&I, or TEGE taxpayer,
the field office must send one paper copy to the Division Counsel of the operating division that
has jurisdiction over the taxpayer's tax return. If the TAM relates to a LB&I taxpayer, an
electronic copy (no paper copy to follow) to "&LB&I HQ" email address should be sent. If the
request is from an Appeals office, the field office must send an electronic copy (no paper copy to
follow) to "*AP Tax Policy & Procedure" email address, with "Attention: TAM Coordinator" in
the subject line.

Power of attorney

.10 Any authorized representative, as described in section 7.01(13) of Rev. Proc. 2014-1,
whether or not enrolled to practice, must comply with Treasury Department Circular No. 230 (31
C.F.R. part 10 (2012)) and with the Conference and Practice Requirements of the Statement of
Procedural Rules (26 C.F.R. §§ 601.501-601.509 (2012)). Form 2848, Power of Attorney and
Declaration of Representative (Rev. March 2012), should be used. An original, a copy, or a fax
transmission of the power of attorney is acceptable, if its authenticity is not reasonably disputed.

Service not barred from
issuing 30-day letter while a
TAM request is pending

.11 After consultation with Appeals, the Service may send the taxpayer a letter (a letter from the
950 series, also known as a 30-day letter) notifying the taxpayer of the right to protest the proposed
changes within 30 days of the date of the letter, while a request for technical advice is pending.

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

Assignment and initial review
by Associate office attorney

.01 After a request for technical advice has been received by the appropriate Associate office, it will
be assigned to an Associate office attorney within a branch. The Associate office attorney determines

Sec. 8.01
January 2, 2014

whether the request meets all procedural requirements of sections 4, 5, 6, and 7 of this revenue procedure and whether it raises issues that may be appropriately addressed in a TAM.

Other forms of guidance

.02 If the assigned reviewer in the Associate office determines that guidance other than a TAM should be provided, the reviewer will immediately notify the Associate Chief Counsel. This other form of guidance may be published guidance, generic advice, or case-specific advice. Although the reviewer should make this determination as soon as possible, it may be made at any time during the processing of the request for advice. To make this determination, the reviewer should consider whether the issue has a broad application to similarly situated taxpayers or an industry and whether resolution of the issue is important to a clear understanding of the tax laws. The Associate Chief Counsel, after consultation with Division Counsel Headquarters and the Operating Division, will decide whether to provide the TAM or issue guidance in another form. The Associate Chief Counsel may decide to provide the TAM as well as another type of guidance, if doing so would promote sound tax administration.

Initial acknowledgment and processing

.03 Upon receipt of a request for technical advice, the Associate office attorney who is assigned as the primary attorney on the request should immediately contact the field office. The purpose of this contact is only to acknowledge receipt of the request. Unless otherwise indicated, all references in this section to the Associate office or Associate office attorney are to the Associate office and attorney with primary responsibility for the TAM request.

Deficiencies in request leading to return

.04 Within 7 calendar days after assignment, the Associate office attorney will contact the field office and field counsel to discuss any deficiencies in the request and will work with the field office and field counsel to correct them. If the deficiencies cannot be corrected over the next 7 calendar days, the request will be closed and returned to the field office. The request may be resubmitted when the deficiencies are corrected.

If only minor procedural deficiencies exist, the Associate office attorney will request the additional information without returning the case. If substantial additional information is required to resolve an issue or if major procedural problems cannot be resolved, the Associate office attorney will inform the field office and field counsel that the request for technical advice will be returned. If a request is returned, the field office should promptly notify the taxpayer of that decision and the reasons for the decision.

Initial discussion

.05 Within 21 calendar days of receipt, the Associate office attorney should contact the field office to discuss any procedural and substantive issues in the request. The Associate office attorney should also inform the field office about any matters referred to another Associate office or branch for assistance and provide points of contact for the other Associate offices or branches.

If additional information requested

.06 If additional information is needed, the Associate office attorney will obtain that information from the taxpayer, the field office, the Director, or the Appeals Area Director in the most expeditious manner possible. Any additional information requested from the taxpayer by the Associate office must be submitted by letter, accompanied by a penalties of perjury statement that conforms with the penalties of perjury statement set forth in Section 7.06 of this revenue procedure, within 10 calendar days after the request for information is made. To facilitate prompt action, the Service and taxpayers are encouraged to exchange information by fax or express mail service whenever feasible. A taxpayer's failure to submit the additional information requested is considered a failure to participate in a material stage of the TAM process and results in a waiver of the right to the conference discussed in Section 9.

Taxpayer request for extension of time to submit additional information

.07 A taxpayer's request for an extension of time to submit additional information must be made in writing and received by the Associate office within the 10-day period. It must provide compelling facts and circumstances to justify an extension. Only the Associate Chief Counsel of the primary office to which the case is assigned may determine whether to grant or deny the request for an extension. Except in rare and unusual circumstances, the Associate office will not agree to an extension of more than 10 calendar days beyond the end of the 10-day period. There is no right to appeal the denial of a request for an extension.

Where to send additional information

.08 Any additional information submitted by the taxpayer should be sent to the attention of the Sec. 8.08

Bulletin No. 2014-1

101 January 2, 2014

assigned Associate office attorney. Generally, only the original of the additional information is necessary. In appropriate cases, however, the Associate office may request additional copies of the information. The taxpayer must also send a copy of the additional information to the field office and field attorney for comment. Any comments by the field office or field attorney must be furnished within an agreed period of time to the Associate office with primary responsibility for the TAM request. If there are no comments, the Associate office attorney should be notified promptly. When the field office receives a copy of the additional information from the taxpayer, the field office must provide field counsel with a copy unless such copies have already been provided.

Tentative conclusions

.09 The Associate office attorney will inform the field office and field counsel when all necessary substantive and procedural information has been received. If possible, the Associate office attorney will provide a tentative conclusion. If no tentative conclusion can be reached, the Associate office is encouraged to discuss the underlying complexities with the field office and field counsel. Because the Associate office attorney's tentative conclusion may change during the preparation and review of the TAM, the tentative conclusion is not considered final. If the tentative conclusion is changed, the Associate office attorney will inform the field office and field counsel. Neither the Associate office, nor the field office or the field counsel, should discuss the tentative conclusion and its underlying rationale with the taxpayer or the taxpayer's representative until the Associate office is ready to provide a TAM that agrees with the taxpayer's position or is ready to hold an adverse conference. To afford taxpayers an appropriate opportunity to prepare and present their position at a conference of right, however, the taxpayer or the taxpayer's representative is to be told (by the Associate office attorney) the tentative conclusion when scheduling the conference of right. Field counsel should be notified of, and given the opportunity to participate in, the notification to the taxpayer of the tentative conclusions and scheduling of the conference of right.

SECTION 9. TAXPAYER CONFERENCES

Notification of conference

.01 If the Associate office proposes to provide a TAM that will be adverse to the taxpayer, and if the taxpayer has not waived its right to a conference, the taxpayer will be informed of the time and place of the conference.

Scheduling conference

.02 The conference for a TAM must occur within 10 calendar days after the taxpayer is informed that an adverse TAM is proposed. The Associate office will notify the field office and field counsel of the scheduled conference and will offer the field office and field counsel the opportunity to participate in the conference.

Taxpayer may request extensions

.03 Only an Associate Chief Counsel may approve an extension of the 10-day period for holding a conference. Although extensions are granted in appropriate circumstances at the discretion of the Associate Chief Counsel, taxpayers should not expect extensions to be routinely granted. The taxpayer must submit a request for an extension in writing to the Associate Chief Counsel of the primary office to which the case is assigned, and must immediately notify the field office and field counsel of the request. The request must contain a detailed justification for the extension and must be submitted sufficiently before the end of the 10-day period to allow the Associate Chief Counsel to consider, and either approve or deny, the request before the end of the 10-day period. If unusual circumstances near the end of the 10-day period make a timely written request impracticable, the taxpayer may orally inform the assigned Associate office attorney or reviewer before the end of the 10-day period about the need for an extension and then promptly submit the written request. The Associate office attorney will inform the taxpayer by telephone of the approval or denial of a requested extension. There is no right to appeal the denial of a request for extension.

One conference of right

.04 In general, a taxpayer who has not waived the right to a conference is entitled by right to only one conference with the Associate office. The conference is normally held at the branch level. A person who has authority to sign the transmittal memorandum in his or her own name, or on behalf of the branch chief, will participate. When more than one branch of an Associate

office has taken an adverse position on issues in the request or when the position ultimately adopted by one branch will affect another branch's determination, a representative from each branch with authority to sign in his or her own name, or for the branch chief, will participate in the conference. The conference is the conference of right for each subject discussed.

Additional conferences may be offered

.05 After the conference of right, the Service will offer the taxpayer an additional conference of right only if an adverse holding is proposed on a new issue or on the same issue but on grounds different from those discussed at the first conference. If a tentative position is changed at a higher level with a result less favorable to the taxpayer, the taxpayer has no right to another conference if the grounds or arguments on which the change is based were discussed at the conference of right. The limitation on the number of conferences to which a taxpayer is entitled does not prevent the Associate office from inviting a taxpayer to participate in additional conferences if that office determines that additional conferences would be useful. These additional conferences are not to be offered routinely following an adverse decision.

Additional information submitted after the conference

.06 In order to ensure that the conference of right is productive, the taxpayer should make a reasonable effort to supply all information, documents, and arguments in writing well before the conference. Sometimes, however, it becomes apparent that new information may be helpful in resolving issues discussed at the conference. If the Associate office and the taxpayer agree that such information would be helpful, all such materials must be submitted and received within 10 calendar days after the conference. Any extension of the 10-day period must be requested by the taxpayer in writing and must be approved by the branch chief of the Associate office attorney. Extensions will not be routinely granted. Taxpayers have no right to submit additional materials after the conference, and are discouraged from providing additional copies or versions of materials already submitted. If the additional information is not received from the taxpayer within 10 calendar days plus any extensions granted by the branch chief, the TAM will be issued on the basis of the existing record. The taxpayer must also send a copy of the additional information to the field office and field counsel for comment. If the additional information has a significant impact on the facts in the request, the Associate office will ask the field office and field counsel for comments, both of which will respond within the agreed upon period of time. If there are no comments, the Associate office attorney will be promptly notified.

Normally conducted in person

.07 Conferences under this section are generally conducted in person, but may be conducted by telephone.

Service makes only tentative recommendations

.08 At the conclusion of the conference, no commitment will be made about the conclusion that the Service will finally adopt for any issue, including the outcome of a request for relief under § 7805(b).

Conference may not be taped

.09 No tape, stenographic, or other verbatim recording of a conference may be made by any party.

SECTION 10. PREPARATION OF THE TECHNICAL ADVICE

Reply consists of two parts

.01 The Associate office attorney prepares replies to requests for technical advice in two parts. Each part identifies the taxpayer by name, address, identification number, and year or years involved. The first part of the reply is a transmittal memorandum (Form M-6000). If the transmittal memorandum provides information not in the TAM, or the case is returned for further development, the transmittal memorandum may be Chief Counsel Advice, as defined in § 6110(i)(1), subject to public inspection under § 6110. The second part is the TAM, which contains: (1) a statement of the issues; (2) the conclusions of the Associate office; (3) a statement of the facts pertinent to the issues; (4) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other precedents published in the Internal Revenue Bulletin, and court decisions; and (5) a discussion of the rationale supporting the conclusions reached by the Associate office. The conclusions give direct answers, whenever possible, to the specific issues

raised by the field office. The Associate office is not bound by the issues as submitted by the taxpayer or by the field office and may reframe the issues to be answered in a TAM after consultation with the field office and field counsel. The discussion of the issues in a TAM will be in sufficient detail so that the field or Appeals officials will understand the reasoning underlying the conclusion.

Status of a request

.02 The taxpayer or the taxpayer's authorized representative may obtain information on the status of the request by contacting the field office that requested the advice. The Associate office attorney or reviewer assigned to the TAM request will give frequent status updates to the field office and field counsel.

Section 6110

.03 Accompanying the TAM is a notice under § 6110(f)(1) of intention to disclose a TAM, including a copy of the version proposed to be open to public inspection and notations of third party communications under § 6110(d). Before the TAM is issued, the Associate office will inform the taxpayer in writing of the material likely to appear in the TAM that the taxpayer proposed for deletion but that the Service has determined should not be deleted. If so informed, the taxpayer may submit within 10 calendar days any further information or arguments supporting the taxpayer's proposed deletions. The Service will attempt to resolve all disagreements about proposed deletions before the TAM is issued. The taxpayer does not have the right to a conference to resolve any disagreements about material to be deleted from the text of the TAM.

Opportunity for field counsel review

.04 The Associate office attorney will inform the field counsel regarding the Associate office's final conclusions before the TAM is sent to the field office, or the Director, Tax Exempt Bonds. The field counsel will be offered a reasonable opportunity to review and informally discuss these conclusions before the final TAM is sent.

Copy of preliminary TAM to field office and field counsel

.05 After the field counsel is given a reasonable opportunity to review the Associate office's final conclusions, the Associate office attorney will provide a draft of the proposed final version of the TAM to the field office and field counsel. If the field office or field counsel disagrees with the proposed final conclusions, normal reconciliation and reconsideration procedures will be followed to resolve the disagreement.

Routing of reply

.06 A TAM is generally addressed to the field office that requested it. In the case of issues arising within the jurisdiction of the Director, Tax Exempt Bonds, the TAM is addressed to that Director with a copy sent to the field office and the field counsel attorney. A copy of the reply to a request from LB&amp;I should be mailed simultaneously to the appropriate Industry Director. A reply to a request from Appeals should be addressed to the appropriate field office, and an electronic copy sent to the TAM Coordinator at the "*AP Tax Policy &amp; Procedure" email address, with "Attention: TAM Coordinator" in the subject line.

Copy of final TAM to field counsel and Division Counsel

.07 The Associate office will provide a copy of the final TAM to the individual field counsel attorney who assisted the field office in submitting the request and to that attorney's Associate Area Counsel. The Associate office also will provide a copy of the final TAM to the Division Counsel for the operating division from which the request originated or that has jurisdiction over the particular matter in the TAM. The reply may be transmitted electronically if it is in .pdf format, or may be sent by mail or fax transmission.

Reconsideration

.08 Requests for reconsideration may be submitted by the field office, or in the case of bonds under the jurisdiction of the Director of Tax Exempt Bonds, by that Director. Requests for reconsideration must describe with specificity the errors in the analysis and conclusions. Requests should focus on points that the TAM overlooked or misconstrued rather than simply re-argue points raised in the initial request. The Associate office will give priority consideration to the request and should act on the request as expeditiously as possible. The Associate office may request further submissions from the field or the taxpayer, but the parties should otherwise make no additional submissions. If a request for reconsideration fails to follow the procedures set forth in this section of this revenue procedure, or the request fails to raise issues or arguments different from those asserted in the initial request for technical advice, the Associate office may return the

request for reconsideration without ruling on the request for reconsideration. The taxpayer is not entitled to be informed that a request for reconsideration is being considered.

Discussing contents with the taxpayer

.09 The Associate office will not discuss the specific contents of the TAM with the taxpayer until after the field office has given a copy of the TAM to the taxpayer.

TAM takes effect when taxpayer receives a copy

.10 After a TAM is sent to the field or, for Tax Exempt Bonds, to the Director, Tax Exempt Bonds, the field or Director, adopts and issues the TAM within the meaning of Treas. Reg. § 301.6110-2(h) and then gives the taxpayer a copy of the TAM, the notice of intention to disclose under § 6110(f)(1), and a copy of the version proposed to be open to public inspection, which includes notations of third party communications under § 6110. If a request for technical advice pertains to more than one taxpayer, the field or Director, Tax Exempt Bonds will provide each pertinent taxpayer with a copy of the TAM and will notify the Associate office when this occurs. The requirement to give a taxpayer a copy of the TAM does not apply to a TAM involving civil fraud or a criminal investigation, or to one involving a jeopardy or termination assessment.

Taxpayer may protest deletions not made

.11 Generally, the Associate office considers only the deletion of material that the taxpayer has proposed for deletion or other deletions as required under § 6110(c) before the TAM is sent to the Director. After receiving the notice of intention to disclose under § 6110(f)(1), the taxpayer may protest the disclosure of certain information in it by submitting a written statement within 20 calendar days that identifies those deletions not made by the Service that the taxpayer believes should have been made. The taxpayer must also submit a copy of the version of the TAM proposed to be open to public inspection with brackets around the deletions proposed by the taxpayer that have not been made by the Associate office plus a statement indicating the statutory basis under § 6110(c) for each proposed deletion. Within 20 calendar days after it receives the taxpayer's response to the notice under § 6110(f)(1), the Associate office must mail to the taxpayer its final administrative conclusion about the deletions to be made.

Public inspection in civil fraud or criminal investigation cases SECTION 11. WITHDRAWAL OF REQUESTS FOR TECHNICAL ADVICE

.12 The provisions of this section about referring issues upon the taxpayer's request, telling the taxpayer about the referral of issues, giving the taxpayer a copy of the arguments submitted, submitting proposed deletions, granting conferences in the Associate office, or providing a copy of the TAM to the taxpayer do not apply to a TAM described in § 6110(g)(5)(A), which involves any matter that is the subject of a civil fraud or criminal investigation, or that involves a jeopardy or termination assessment. In these cases, a copy of the TAM may be given to the taxpayer only after all proceedings in the investigations or assessments are complete, but before the Commissioner mails the notice of intention to disclose under § 6110(f)(1). The taxpayer may then provide the statement of proposed deletions to the Associate office.

Taxpayer notified

.01 Once a request for a TAM has been sent to the Associate office, only a Director may withdraw the request, and this must be done before the responding transmittal memorandum for the TAM is signed. To withdraw the request, the Director must first notify the taxpayer of the intent to withdraw unless: (1) the period of limitation on assessment is about to expire and the taxpayer has declined to give written consent to extend the period; or (2) the notification would be prejudicial to the best interests of the Government. If the taxpayer does not agree that the request should be withdrawn and wishes to request review of the decision, the procedures in Section 5.04 of this revenue procedure for review must be followed.

Acknowledgment of withdrawal

.02 Acknowledgment of the withdrawal of a request submitted by a Director or Appeals should be sent to the appropriate Director or Appeals office, with a copy to the TAM coordinator. For a withdrawal of a request submitted by Appeals, send an electronic copy to the "*AP Tax Policy &amp; Procedure" email address, with "Attention: TAM Coordinator" in the subject line.

## Associate office may decide not to provide a TAM

Associate office may provide
views

.03 If the Associate office determines that a TAM will not be provided, it may return the
request for technical advice unanswered. This determination must be made on the basis of sound
tax administration and must be approved by the Associate Chief Counsel. The decision not to
provide a TAM should be an infrequent occurrence and be made only after consultation with
field counsel and the requesting field office. If field counsel disagrees with this determination,
they may request reconsideration through existing reconciliation procedures.

.04 If a request for technical advice is withdrawn or an Associate office decides not to provide
a TAM, the Associate office may address the substantive issues through published guidance, such
as a regulation or revenue ruling. The Associate office may, in the alternative, address the
substantive issues through legal advice, either generic or case-specific. The decision to address
the issues through these other forms of guidance will be based on the general standards for
issuing those types of guidance.

## SECTION 12. USE OF THE TECHNICAL ADVICE

Service generally applies
advice in processing the
taxpayer's case

.01 After a TAM is issued, the field office must process the taxpayer's case on the basis of the
conclusions in the TAM. In the case of a TAM unfavorable to the taxpayer, the Appeals Area
Director may decide to settle the issue under existing settlement authority. If a TAM provides
conclusions involving a § 103 obligation and the issuer of this obligation, the field office must
apply the conclusions to the issuer and any holder of the obligation, unless the holder also
initiates a request for a TAM on the same issue addressed in the TAM involving the issuer, and
the Associate office issues a TAM involving that issue and that holder.

## SECTION 13. RETROACTIVITY AND RELIANCE

Usually applies retroactively

.01 The holdings in a TAM are applied retroactively, whether they are initial holdings or they
are later holdings that modify or revoke holdings in a prior TAM. The Associate Chief Counsel
with jurisdiction over the TAM, however, may exercise the discretionary authority under
§ 7805(b) to limit the retroactive effect of any holding. This authority is exercised in rare and
unusual circumstances.

## Revocation or modification of an earlier letter ruling or TAM

.02 A TAM may be used to seek revocation or modification of an earlier TAM or revocation
or modification of a PLR. See Rev. Proc. 2014-1 § 11.03 with respect to revocation or
modification of PLRs. Generally, a TAM that revokes or modifies a letter ruling or an earlier
TAM will not be applied retroactively if: (1) the applicable law has not changed; (2) the taxpayer
directly involved in the letter ruling or earlier TAM relied in good faith on it; and (3) revocation
or modification would be detrimental to the taxpayer. The new TAM will be applied retroactively
to the taxpayer whose tax liability was directly involved in the letter ruling or TAM if: (1)
controlling facts have been misstated or omitted; or (2) the facts at the time of the transaction are
materially different from the controlling facts on which the letter ruling or earlier TAM was
based. If a letter ruling or a TAM is modified or revoked with retroactive effect, the notice to the
taxpayer, except in fraud cases, should set forth the grounds on which the modification or
revocation is being made and the reason why the modification or revocation is being applied
retroactively.

## Continuing action or series of actions

.03 If an issue addressed in the TAM relates to a continuing action or a series of actions, it is
generally applied until it is withdrawn or until the conclusion is modified or revoked by a final
decision in favor of the taxpayer with respect to that issue, the enactment of legislation, the
ratification of a tax treaty, a decision of the United States Supreme Court, or the issuance of
temporary regulations, final regulations, a revenue ruling, or other statement published in the
Internal Revenue Bulletin. Publication of a notice of proposed rulemaking does not affect the
application of a TAM. If a new holding in a TAM is less favorable to the taxpayer than the
holding in an earlier TAM, the new holding is generally not applied to the period when the

taxpayer relied on the earlier holding. It will be applied to that period, however, if material facts on which the earlier TAM was based have changed.

Other taxpayers SECTION 14. HOW MAY RETROACTIVE EFFECT BE LIMITED?

.04 Under § 6110(k)(3), a taxpayer may not rely on a TAM issued by the Service for another taxpayer. In addition, retroactive or non-retroactive treatment to one member of an industry directly involved in a letter ruling or TAM does not extend to another member of that same industry, and retroactive or non-retroactive treatment to one client of a tax practitioner does not extend to another client of that same practitioner.

Requests for relief under § 7805(b).

.01 A taxpayer with respect to whom a TAM is issued or for whom a TAM request is pending may request that the appropriate Associate Chief Counsel limit the retroactive effect of any holding in the TAM or of any subsequent modification or revocation of the TAM. For a pending request for technical advice, the taxpayer should make the request for relief under § 7805(b) as part of the initial request for advice. The Associate office will consider a request for relief under § 7805(b) made at a later time if the Director determines that there is justification for the delay in the making of the request. The Director's determination that the delayed request for § 7805 is not justified cannot be appealed.

Form of request for relief- in general

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

Form of request for relief- continuing transaction before examination of return

.03 A request for relief under § 7805(b) must be made in the form of a request for a letter ruling if: (1) a TAM addressing a continuing transaction is modified or revoked by later published guidance; and (2) the request for relief is submitted before an examination has begun covering those years for which relief is sought. The requirements for a letter ruling request are given in Rev. Proc. 2014-1 (this Bulletin).

Taxpayer's right to a conference

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

Reconsideration of request for relief under § 7805(b)

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

SECTION 15. SIGNIFICANT CHANGES MADE TO REV. PROC. 2013-2

There were no significant changes made to Rev. Proc. 2013-2.

# SECTION 16. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2013-2, 2013-1 I.R.B. 92, is superseded.

# SECTION 17. EFFECTIVE DATE DRAFTING INFORMATION

This revenue procedure is effective January 2, 2014.

The principal author of this revenue procedure is Michael A. Franklin 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 Amie Colwell Breslow at
(202) 317-7700 (not a toll-free call);

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

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

(4) the Associate Chief Counsel (Passthroughs and Special Industries), contact Kevin Babitz at
(202) 317-6852 (not a toll-free call);

(5) the Associate Chief Counsel (Procedure and Administration), contact Mark Cottrell or
Henry Schneiderman at (202) 317-3400 (not a toll-free call);

(6) the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities),
contact Shoshanna Tanner at (202) 317-5500 (not a toll-free call);

(7) the Associate Chief Counsel (International), contact Jeffrey L. Vinnik at (202) 317-3800
(not a toll-free call);

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

(9) the Commissioner (Small Business/Self-Employed Division), contact Susan L. Anderson at
(949) 389-4860 (not a toll-free call);

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

(11) the Office of Appeals, contact Sharon D. Evans at (954) 423-7935 (not a toll-free call).

## INDEX References are to sections in Rev. Proc. 2014-2

Additional Information

-for pre-submission conference

6.05

-initial processing of TAM request

8.06

-after conference of right

9.06

-proposed deletions under § 6110

7.05, 10.03

-Service will request additional information from the taxpayer by express mail services or fax

8.06

Appeal of decision to seek or not seek TAM.

5.03

-The decision of the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations may be reviewed but not appealed

5.04

Civil fraud or criminal investigation cases

10.12

Conferences

-offered

.6, 9, 14.04

-after conference of right

9.05

-scheduling.

6.06, 9.02

request to limit retroactivity

14.04

telephone conferences

6.07, 9.07

Definitions

-Appeals officer

2.04

-Director

2.02

-field office

2.07

-field counsel.

2.08

-frivolous issue

4.05

-taxpayer

2.05

-technical advice

1.01

-Territory Manager

2.03

Discussions with Taxpayers

-contents of TAM

10.09

-substantive issues at pre-submission conference

6.09

-tentative conclusion in TAM

8.09

Employee Plans and Exempt Organizations

-application of § 6104

10.12

-jurisdiction of Commissioner, Tax Exempt and Government Entities Division

4.02

Extension of Time

-to appeal decision not to request a TAM.

5.03

-to disagree with statement of facts in technical advice request

7.06

-to schedule conference

9.03

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

8.07

-to submit additional information after conference

9.06

Foreign laws and documents

-certified English translations

7.03(2)

-effect if interpretation is a material fact

7.03(1)

-when required

7.03

Issues Eligible for TAMs

Issues Not Eligible for TAMs

Penalties of Perjury Statement

-form

7.06

-required when no factual agreement

7.06

-required with additional information

8.06

-signature requirement for deletion statement.

7.05

Power of Attorney

7.10

Pre-submission Conferences

Public Inspection Under § 6110

-deletion statement required

7.05

exception when § 6104 applies

10.12

-notice of intention to disclose.

10.03

protesting deletions not made

10.11

Responsibility for Requesting Advice

.5.01

Retroactive Effect

-request to limit retroactivity

14.01

format of request

14.02, 14.03

-right to conference

14.04

Section 301.9100 Relief

4.04

Status of TAM

10.02

Taxpayer Participation

3.03

-consequences of failure to participate in material stage

7.06, 8.06

What to Include in the Request for Advice

-Memorandum of issues, facts, law, and arguments

7.01

-Statement proposing information to be deleted from public inspection

7.05

-Transmittal Form 4463

7.07

-Number of copies

7.09

-Power of attorney

7.10

Where to Send

-information required prior to pre-submission conference

6.05

-request for a TAM

5.02

Withdrawal of TAM Requests

### Rev. Proc. 2014-3

## TABLE OF CONTENTS

SECTION 1. PURPOSE AND NATURE OF CHANGES

111

SECTION 2. BACKGROUND AND SCOPE

112

SECTION 3. AREAS IN WHICH RULINGS WILL NOT BE ISSUED

112

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

117

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

121

SECTION 6. AREAS COVERED BY AUTOMATIC APPROVAL PROCEDURES

123

SECTION 7. EFFECT ON OTHER REVENUE PROCEDURES

123

SECTION 8. EFFECTIVE DATE.

123

SECTION 9. PAPERWORK REDUCTION ACT

123

DRAFTING INFORMATION

124

### SECTION 1. PURPOSE AND NATURE OF CHANGES

.01 The purpose of this revenue proce-
dure is to update Rev. Proc. 2013-3,
2013-1 I.R.B. 113, by providing a revised
list of those areas of the Internal Revenue
Code under the jurisdiction of the Asso-
ciate Chief Counsel (Corporate), the As-
sociate Chief Counsel (Financial Institu-
tions and Products), the Associate Chief
Counsel (Income Tax and Accounting),
the Associate Chief Counsel (Pass-
throughs and Special Industries), the As-
sociate Chief Counsel (Procedure and Ad-
ministration), and the Division Counsel/
Associate Chief Counsel (Tax Exempt
and Government Entities) relating to is-
sues on which the Internal Revenue Ser-
vice will not issue letter rulings or deter-
mination letters. For a list of areas under
the jurisdiction of the Associate Chief
Counsel (International) relating to interna-
tional issues on which the Service will not
issue letter rulings or determination let-
ters, see Rev. Proc. 2014-7, this Bulletin.
For a list of areas under the jurisdiction of
the Commissioner, Tax Exempt and Gov-
ernment Entities Division relating to is-
sues, plans, or plan amendments on which
the Service will not issue letter rulings or
determination letters, see, respectively,
section 8 of Rev. Proc. 2014-4, this Bul-

letin, and section 3.02 of Rev. Proc.
2014-6, this Bulletin.

Additionally, this revenue procedure
incorporates the relevant provisions of
Rev. Proc. 2013-32, 2013-28 I.R.B. 55,
concerning letter rulings addressing issues
under §§ 332, 351, 355, 368, and 1036.
.02 Changes.

(1) Section 3.01(3), regarding § 45, has
been modified.

(2) Section 3.01(4), regarding § 47, has
been added.

(3) Section 3.01(33), regarding §§ 267,
304, 331, 332, 351, and 1502, has been
added.

(4) Section 3.01(45), regarding §§ 332,
351, 355, 368, and 1036, has been modi-
fied to incorporate the relevant provisions
of Rev. Proc. 2013-32, 2013-28 I.R.B.
55.

(5) Section 3.01(73), regarding § 1502,
has been added.

(6) Section 3.02(8), regarding rescis-
sions of completed transactions, has been
added and old section 5.02(1) has been
deleted.

(7) Section 3.02(10), regarding ques-
tions that the Service determines, in its
discretion, should not be issued, has been
modified.

(8) Section 4.01(12), regarding § 165,
has been added.

(9) Old section 4.01(22), regarding
§§ 302(b)(4) and (e), 331, 332, and 346,

has been deleted. Significant issues arising
in the context of these transactions may be
addressed under the procedures described
in section 3.01(45), below and section
6.03 of Rev. Proc. 2014-1, this Bulletin.

(10) Section 4.01(41), regarding § 856,
has been added.

(11) Section 4.01(43), regarding
§ 1031(f), has been added.

(12) Section 4.01(45), regarding
§ 1362 and Rev. Proc. 2013-30, 2013-36
I.R.B. 173, has been modified.

(13) Section 4.02(2), regarding rulings
on part of an integrated transaction, has
been modified to incorporate the relevant
provisions of Rev. Proc. 2013-32.

(14) Section 4.02(9), regarding com-
fort rulings, has been modified to incor-
porate the relevant provisions of Rev.
Proc. 2013-32.

(15) Section 4.02(11), regarding the
treatment of "hook equity," has been
added.

(16) Section 5.01(26), regarding
§ 6109, has been added.

(17) Old section 5.02(2), regarding cer-
tain transfers of stock, money, or other
property between a person and a corpora-
tion, has been redesignated as section
5.02.

(18) Section 6.06, regarding § 1362
and Rev. Proc. 2013-30, 2013-36 I.R.B.
173, has been modified.

## SECTION 2. BACKGROUND, SCOPE OF APPLICATION, AND NO-RULE ISSUES PART OF INTEGRATED TRANSACTION

### .01 Background.

Whenever appropriate in the interest of
sound tax administration, it is the policy
of the Service to answer inquiries of indi-
viduals and organizations regarding their
status for tax purposes and the tax effects
of their acts or transactions, prior to the
filing of returns or reports that are re-
quired by the revenue laws.

There are, however, certain areas in
which, because of the inherently factual na-
ture of the problems involved, or for other
reasons, the Service will not issue rulings or
determination letters. These areas are set
forth in four sections of this revenue proce-
dure. Section 3 reflects those areas in which
rulings or determination letters will not be
issued. Section 4 sets forth those areas in
which rulings or determination letters will
not ordinarily be issued. "Not ordinarily"
means that unique and compelling reasons
must be demonstrated to justify the issuance
of a ruling or determination letter. Section 5
sets forth those areas in which the Service is
temporarily not issuing rulings or determi-
nation letters because those matters are un-
der study. Finally, section 6 of this revenue
procedure lists specific areas in which the
Service will not ordinarily issue rulings be-
cause the Service has provided automatic
approval procedures for these matters.

See Rev. Proc. 2014-1, this Bulletin,
particularly section 6 captioned "Under
What Circumstances Does The Service
Not Issue Letter Rulings Or Determina-
tion Letters?" for general instructions and
other situations in which the Service will
not or ordinarily will not issue letter rul-
ings or determination letters.

With respect to the items listed, revenue
rulings or revenue procedures may be pub-
lished in the Internal Revenue Bulletin from
time to time to provide general guidelines
regarding the position of the Service.

Additions or deletions to this revenue
procedure as well as restatements of items
listed will be made by modification of this
revenue procedure. Changes will be pub-
lished as they occur throughout the year
and will be incorporated annually in a new
revenue procedure published as the third
revenue procedure of the year. These lists

should not be considered all-inclusive be-
cause the Service may decline to issue a
letter ruling or a determination letter when
appropriate in the interest of sound tax
administration (including due to resource
constraints) or on other grounds whenever
warranted by the facts or circumstances of
a particular case. Decisions not to rule on
individual cases (as contrasted with those
that present significant pattern issues) are
not reported in this revenue procedure and
will not be added to subsequent revisions.

If the Service determines that it is not
in the interest of sound tax administration
to issue a letter ruling or determination
letter due to resource constraints, it will
adopt a consistent approach with respect
to taxpayers that request a ruling on the
same issue. The Service will also consider
adding the issue to the no rule list at the
first opportunity. See section 6.02 of Rev.
Proc. 2014-1.

.02 Scope of Application. This revenue
procedure does not preclude the submis-
sion of requests for technical advice to the
National Office from other offices of the
Service.

.03 No-Rule Issues Part of Integrated
Transaction.

If it is impossible for the Service to
determine the tax consequences of an in-
tegrated transaction without knowing the
resolution of an issue on which the Ser-
vice will not issue rulings or determina-
tion letters under this revenue procedure
involving a part of the transaction or a
related transaction, the taxpayer must state
in the request to the best of the taxpayer's
knowledge and belief the tax conse-
quences of the no-rule issue. The Ser-
vice's ruling or determination letter will
state that the Service did not consider, and
no opinion is expressed upon, that issue.
In appropriate cases the Service may de-
cline to issue rulings or determination let-
ters on such integrated transactions due to
the relevance of the no-rule issue, despite
the taxpayer's representation. See also
section 4.02(2) of this revenue procedure.

## SECTION 3. AREAS IN WHICH RULINGS OR DETERMINATION LETTERS WILL NOT BE ISSUED

.01 Specific Questions and Problems.

(1) Section 42 .- Low-Income Housing
Credit .- Whether under § 42(j)(4)(E) a
casualty loss has been restored by recon-

struction or replacement within a reason-
able period of time. The Service may issue
a determination letter in this case. See
section 12 of Rev. Proc. 2014-1, this Bul-
letin.

(2) Section 45 .- Electricity Produced
from Certain Renewable Resources,
Etc .- Determination as to who is the pro-
ducer of refined coal for purposes of
claiming the renewable electricity produc-
tion credit.

(3) Section 45 .- Electricity Produced
from Certain Renewable Resources,
Etc .- The allocation by a partnership of
the § 45 credit, the validity of the partner-
ship, or whether any taxpayer is a valid
partner in the partnership.

(4) Section 47 .- Rehabilitation Cred-
it .- The allocation by a partnership of the
§ 47 rehabilitation credit, the validity of
the partnership, or whether any taxpayer is
a valid partner in the partnership.

(5) Section 61 .- Gross Income De-
fined .- Whether amounts voluntarily de-
ferred by a taxpayer under a deferred-
compensation plan maintained by an
organization described in § 501 (other
than an eligible plan maintained by an
eligible employer pursuant to the provi-
sions of § 457(b)) are currently includible
in the taxpayer's gross income.

(6) Section 61 .- Gross Income De-
fined .- Whether a split-dollar life insur-
ance arrangement is "materially modified"
within the meaning of § 1.61-22(j)(2) of
the Income Tax Regulations. (Also §§ 83,
301, 1401, 2501, 3121, 3231, 3306, 3401,
and 7872.)

(7) Sections 61, 451, and 1001 .- Gross
Income Defined; General Rule for Tax-
able Year of Inclusion; Determination of
Amount of and Recognition of Gain or
Loss .- Whether, under authorization by
an appropriate state agency to recover cer-
tain costs pursuant to state specified cost
recovery legislations, any investor-owned
utility company realizes income upon: (i)
the creation of an intangible property
right; (ii) the transfer of that intangible
property right; or (iii) the securitization of
the intangible property right.

(8) Section 79 .- Group-Term Life In-
surance Purchased for Employees .-
Whether a group insurance plan for 10 or
more employees qualifies as group-term
insurance, if the amount of insurance is
not computed under a formula that would

Sec. 3.01
January 2, 2014

meet the requirements of § 1.79-
1(c)(2)(ii) of the Income Tax Regulations
had the group consisted of fewer than 10
employees.

(9) Section 83 .- Property Transferred
in Connection with Performance of Ser-
vices .- Whether a restriction constitutes a
substantial risk of forfeiture, if the em-
ployee is a controlling shareholder. Also,
whether a transfer has occurred, if the
amount paid for the property involves a
nonrecourse obligation.

(10) Section 83 .- Property Transferred
in Connection with Performance of Ser-
vices .- Which corporation is entitled to
the deduction under § 83(h) in cases in
which a corporation undergoes a corpo-
rate division, if the facts are not similar to
those described in Rev. Rul. 2002-1,
2002-1 C.B. 268.

(11) Section 101 .- Certain Death Ben-
efits .- Whether there has been a transfer
for value for purposes of § 101(a) in sit-
uations involving a grantor and a trust
when (i) substantially all of the trust cor-
pus consists or will consist of insurance
policies on the life of the grantor or the
grantor's spouse, (ii) the trustee or any
other person has a power to apply the
trust's income or corpus to the payment of
premiums on policies of insurance on the
life of the grantor or the grantor's spouse,
(iii) the trustee or any other person has a
power to use the trust's assets to make
loans to the grantor's estate or to purchase
assets from the grantor's estate, and (iv)
there is a right or power in any person that
would cause the grantor to be treated as
the owner of all or a portion of the trust
under §§ 673 to 677.

(12) Sections 101, 761, and 7701 .-
Certain Death Benefits; Terms Defined;
Definitions .- Whether, in connection
with the transfer of a life insurance policy
to an unincorporated organization, (i) the
organization will be treated as a partner-
ship under §§ 761 and 7701, or (ii) the
transfer of the life insurance policy to the
organization will be exempt from the
transfer for value rules of § 101, when
substantially all of the organization's as-
sets consist or will consist of life insur-
ance policies on the lives of the members.

(13) Section 102 .- Gifts and Inheri-
tances .- Whether a transfer is a gift
within the meaning of § 102(a).

(14) Section 105(h) .- Amount Paid to
Highly Compensated Individuals Under a
Discriminatory Self-Insured Medical Ex-
pense Reimbursement Plan .- Whether a
self-insured medical reimbursement plan
satisfies the requirements of § 105(h) for a
plan year.

(15) Section 107 .- Rental Value of
Parsonages .- Whether amounts distrib-
uted to a retired minister from a pension
or annuity plan should be excludible from
the minister's gross income as a parson-
age allowance under § 107.

(16) Section 107 .- Rental Value of
Parsonages .- Whether an individual is a
"minister of the gospel" for Federal tax
purposes. (Also §§ 1402(a)(8), (c)(4), and
(e), 3121(b)(8)(A), and 3401(a)(9).)

(17) Section 115 .- Income of States,
Municipalities, Etc .- The results of trans-
actions pursuant to a plan or arrangement
created by state statute a primary objec-
tive of which is to enable participants to
pay for the costs of a post-secondary ed-
ucation for themselves or a designated
beneficiary, including: (i) whether the
plan or arrangement, itself, is an entity
separate from a state and, if so, how the
plan or arrangement is treated for Federal
tax purposes; and (ii) whether any con-
tract under the plan or arrangement is a
debt instrument and, if so, how interest or
original issue discount attributable to the
contract is treated for Federal tax pur-
poses. (Also §§ 61, 163, 1275, 2501, and
7701.)

(18) Section 115 .- Income of States,
Municipalities, Etc .- Whether the income
of membership organizations established
by states exclusively to reimburse mem-
bers for losses arising from workmen's
compensation claims is excluded from
gross income under § 115.

(19) Section 117 .- Qualified Scholar-
ships .- Whether amounts paid to research
fellows and research associates are schol-
arships or fellowships excluded from
wages for FICA tax purposes.

(20) Section 117 .- Qualified Scholar-
ships .- Whether an employer-related
scholarship or fellowship grant is exclud-
ible from the employee's gross income, if
there is no intermediary private founda-
tion distributing the grants, as described in
Rev. Proc. 76-47, 1976-2 C.B. 670.

(21) Section 119 .- Meals or Lodging
Furnished for the Convenience of the Em-

ployer .- Whether the value of meals or
lodging is excludible from gross income
by an employee who is a controlling
shareholder of the employer.

(22) Section 121 .- Exclusion of Gain
from Sale of Principal Residence .-
Whether property qualifies as the taxpay-
er's principal residence.

(23) Section 125 .- Cafeteria Plans .-
Whether amounts used to provide group-
term life insurance under § 79, accident
and health benefits under §§ 105 and 106,
and dependent care assistance programs
under § 129 are includible in the gross
income of participants and considered
"wages" for purposes of §§ 3401, 3121,
and 3306 when the benefits are offered
through a cafeteria plan.

(24) Section 162 .- Trade or Business
Expenses .- Whether compensation is
reasonable in amount.

(25) Section 163 .- Interest .- The in-
come tax consequences of transactions in-
volving "shared appreciation mortgage"
(SAM) loans in which a taxpayer, borrow-
ing money to purchase real property, pays
a fixed rate of interest on the mortgage
loan below the prevailing market rate and
will also pay the lender a percentage of
the appreciation in value of the real prop-
erty upon termination of the mortgage.
This applies to all SAM arrangements in
which the loan proceeds are used for com-
mercial or business activities, or to finance
a personal residence, if the facts are not
similar to those described in Rev. Rul.
83-51, 1983-1 C.B. 48. (Also §§ 61, 451,
461, 856, 1001, and 7701.)

(26) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a
charitable contribution deduction under
§ 170 is allowed for a transfer of an in-
terest in a limited partnership or a limited
liability company taxed as a partnership to
an organization described in § 170(c).

(27) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a tax-
payer who advances funds to a charitable
organization and receives therefor a prom-
issory note may deduct as contributions,
in one taxable year or in each of several
years, amounts forgiven by the taxpayer in
each of several years by endorsement on
the note.

(28) Section 181 .- Treatment of Cer-
tain Qualified Film and Television Pro-
ductions .- The determination under

Sec. 3.01

§ 1.181-1(a)(1) and (2) as to who is the
owner of a qualified film or television
production.

(29) Section 199 .- Income Attribut-
able to Domestic Production Activities .-
The determination under § 1.199-3(f)(1)
as to who is the taxpayer that has the
benefits and burdens of ownership under
Federal income tax principles of any qual-
ifying production property (as defined in
§ 1.199-3(j)(1)), qualified film (as defined
in § 1.199-3(k)), or utilities (as defined in
§ 1.199-3(1)) during the period in which a
qualifying activity under § 199 occurs.

(30) Section 213 .- Medical, Dental,
Etc., Expenses .- Whether a capital ex-
penditure for an item that is ordinarily
used for personal, living, or family pur-
poses, such as a swimming pool, has as its
primary purpose the medical care of the
taxpayer or the taxpayer's spouse or de-
pendent, or is related directly to such med-
ical care.

(31) Section 264 .- Certain Amounts
Paid in Connection with Insurance Con-
tracts .- Whether § 264(d)(1) applies.

(32) Section 264(c)(1) .- Contracts
Treated as Single Premium Contracts .-
Whether "substantially all" the premiums
of a contract of insurance are paid within
a period of 4 years from the date on which
the contract is purchased. Also, whether
an amount deposited is in payment of a
"substantial number" of future premiums
on such a contract.

(33) Sections 267, 304, 331, 332, 351,
and 1502 .- Losses, Expenses, and Inter-
est with Respect to Transactions Between
Related Taxpayers; Redemption Through
Use of Related Corporations; Gain or
Loss to Shareholders in Corporate Liqui-
dations; Complete Liquidations of Subsid-
iaries; Transfer to Corporation Controlled
by Transferor; Regulations .- The treat-
ment of transactions in which stock of a
corporation is transferred with a plan or
intention that the corporation be liqui-
dated in a transaction intended to qualify
under § 331.

(34) Section 269 .- Acquisitions Made
to Evade or Avoid Income Tax .-
Whether an acquisition is within the
meaning of § 269.

(35) Section 274 .- Disallowance of
Certain Entertainment, Etc., Expenses .-
Whether a taxpayer who is traveling away
from home on business may, in lieu of

substantiating the actual cost of meals,
deduct a fixed per-day amount for meal
expenses that differs from the amount au-
thorized by the revenue procedure provid-
ing optional rules for substantiating the
amount of travel expenses for the period
in which the expense was paid or incurred.

(36) Section 302 .- Distributions in
Redemption of Stock .- Whether § 302(b)
applies when the consideration given in
redemption by a corporation consists en-
tirely or partly of its notes payable, and
the shareholder's stock is held in escrow
or as security for payment of the notes
with the possibility that the stock may or
will be returned to the shareholder in the
future, upon the happening of specific de-
faults by the corporation.

(37) Section 302 .- Distributions in
Redemption of Stock .- Whether § 302(b)
applies when the consideration given in
redemption by a corporation in exchange
for a shareholder's stock consists entirely
or partly of the corporation's promise to
pay an amount based on, or contingent on,
future earnings of the corporation, when
the promise to pay is contingent on work-
ing capital being maintained at a certain
level, or any other similar contingency.

(38) Section 302 .- Distributions in
Redemption of Stock .- Whether § 302(b)
applies to a redemption of stock, if, after
the redemption, the distributing corpora-
tion uses property that is owned by the
shareholder from whom the stock is re-
deemed and the payments by the corpora-
tion for the use of the property are depen-
dent upon the corporation's future
earnings or are subordinate to the claims
of the corporation's general creditors.
Payments for the use of property will not
be considered to be dependent upon future
earnings merely because they are based on
a fixed percentage of receipts or sales.

(39) Section 302 .- Distributions in
Redemption of Stock .- Whether the ac-
quisition or disposition of stock described
in § 302(c)(2)(B) has, or does not have, as
one of its principal purposes the avoid-
ance of Federal income taxes within the
meaning of that section, unless the facts
and circumstances are materially identical
to those set forth in Rev. Rul. 85-19,
1985-1 C.B. 94; Rev. Rul. 79-67,
1979-1 C.B. 128; Rev. Rul. 77-293,
1977-2 C.B. 91; Rev. Rul. 57-387,
1957-2 C.B. 225; Rev. Rul. 56-584,

1956-2 C.B. 179; or Rev. Rul. 56-556,
1956-2 C.B. 177.

(40) Section 302(b)(4) and (e) .- Re-
demption from Noncorporate Shareholder
in Partial Liquidation; Partial Liquidation
Defined .- The amount of working capital
attributable to a business or portion of a
business terminated that may be distrib-
uted in partial liquidation.

(41) Section 304 .- See section
3.01(33), above.

(42) Section 312 .- Effect on Earnings
and Profits .- The determination of the
amount of earnings and profits of a cor-
poration.

(43) Sections 331, 453, and 1239 .-
Gain or Loss to Shareholders in Corporate
Liquidations; Installment Method; Gain
from Sale of Depreciable Property Be-
tween Certain Related Taxpayers .- The
tax effects of a transaction in which there
is a transfer of property by a corporation
to a partnership or other noncorporate en-
tity (or the transfer of stock to such entity
followed by a liquidation of the corpora-
tion) when more than a nominal amount
of the stock of such corporation and the
capital or beneficial interests in the pur-
chasing entity (that is, more than 20 per-
cent in value) is owned by the same per-
sons, and the consideration to be received
by the selling corporation or the selling
shareholders includes an installment obli-
gation of the purchasing entity.

(44) Section 331 .- See section
3.01(33), above.

(45) Sections 332, 351, 355, 368, and
1036 .- Complete Liquidations of Subsid-
iaries; Transfer to Corporation Controlled
by Transferor; Distribution of Stock and
Securities of a Controlled Corporation;
Definitions Relating to Corporate Reorga-
nizations; Stock for Stock of Same Cor-
poration .- Whether a transaction quali-
fies under § 332, 351, 355, or 1036 for
nonrecognition treatment or whether it
constitutes a corporate reorganization
within the meaning of § 368, and whether
various tax consequences (such as nonrec-
ognition and basis) result from the appli-
cation of that section. The Service will
instead rule only on significant issues pre-
sented in a transaction described in § 332,
351, 355, 368, or 1036. Additionally, the
Service will rule on one or more signifi-
cant issues under the Code sections that
address the tax consequences (such as

## Sec. 3.01

nonrecognition and basis) that result from
the qualification of a transaction under
§ 332, 351, 355, 368, or 1036. See section
6.03 of Rev. Proc. 2014-1, this Bulletin.

SIGNIFICANT ISSUE: A significant
issue is an issue of law the resolution of
which is not essentially free from doubt
and that is germane to determining the tax
consequences of the transaction. A change
of circumstances arising after a transac-
tion ordinarily does not present a signifi-
cant issue with respect to the transaction.

OBTAINING A LETTER RULING:
To obtain a letter ruling on a significant
issue presented in a transaction, the tax-
payer in its letter ruling request must com-
ply with all the requirements set forth in
section 6.03 of Rev. Proc. 2014-1, as well
as Rev. Proc. 2014-1, in general.

(46) Section 332 .- See section
3.01(33) and (45), above.

(47) Section 351 .- See section
3.01(33) and (45), above.

(48) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Whether the distribution of the
stock of a controlled corporation is being
carried out for one or more corporate busi-
ness purposes, whether the transaction is
used principally as a device, and whether
the distribution and an acquisition are part
of a plan under § 355(e). See Rev. Proc.
2003-48, 2003-2 C.B. 86. Notwithstand-
ing the preceding sentence, the Service
may issue a ruling regarding the effect of
redemptions under § 355(e) pending the
issuance of temporary or final regulations
regarding redemptions under § 355(e) if
an adverse ruling on such question would
result in there being a direct or indirect
acquisition by one or more persons of
stock representing a 50-percent or greater
interest in the distributing corporation or
the controlled corporation that is part of a
plan under § 355(e).

(49) Section 355 .- See section
3.01(45), above.

(50) Section 358 .- Basis to Distribu-
tees .- The acceptability of an estimation
procedure or the acceptability of a specific
sampling procedure to determine the basis
of stock acquired by an acquiring corpo-
ration in a reorganization described in
§ 368(a)(1)(B).

(51) Section 368 .- See section
3.01(45), above.

(52) Section 409A .- Inclusion in
Gross Income of Deferred Compensation
Under Nonqualified Deferred Compensa-
tion Plans .- The income tax conse-
quences of establishing, operating, or par-
ticipating in a nonqualified deferred
compensation plan within the meaning of
§ 1.409A-1(a); whether a plan is de-
scribed in § 1.409A-1(a)(3)(iv) or (v);
whether a plan is a bona fide vacation
leave, sick leave, or compensatory time
plan described in § 1.409A-1(a)(5); and
whether a plan provides for the deferral of
compensation under § 1.409A-1(b).

(53) Section 424 .- Definitions and
Special Rules .- Whether the substitution
of a new Incentive Stock Option (ISO) for
an old ISO, or the assumption of an old
ISO, by an employer by reason of a cor-
porate transaction constitutes a modifica-
tion which results in the issuance of a new
option by reason of failing to satisfy the
spread test requirement of § 424(a)(1) or
the ratio test requirement of § 1.425-
1(a)(4). The Service will continue to rule
on the issue of whether the new ISO or the
assumption of the old ISO gives the em-
ployee additional benefits not present un-
der the old option within the meaning of
§ 424(a)(2).

(54) Section 451 .- General Rule for
Taxable Year of Inclusion .- The tax con-
sequences of a nonqualified unfunded
deferred-compensation arrangement with
respect to a controlling shareholder-
employee eligible to participate in the ar-
rangement.

(55) Section 451 .- General Rule for
Taxable Year of Inclusion .- The tax con-
sequences of nonqualified unfunded
deferred-compensation arrangements in
which the arrangements fail to meet the
requirements of Rev. Proc. 92-65,
1992-2 C.B. 428 and Rev. Proc. 71-19,
1971-1 C.B. 698.

(56) Sections 451 and 457 .- General
Rule for Taxable Year of Inclusion; Non-
qualified Deferred Compensation Plans of
State and Local Governments and Tax-
Exempt Organizations .- The tax conse-
quences to unidentified independent con-
tractors in nonqualified unfunded deferred
compensation plans. This applies to plans
established under § 451 by employers in
the private sector and to plans of state and
local governments and tax-exempt organi-
zations under § 457. However, a ruling

with respect to a specific independent con-
tractor's participation in such a plan may
be issued.

(57) Section 451 .- See section 3.01(7),
above.

(58) Section 453 .- See section
3.01(43), above.

(59) Section 457 .- See section
3.01(56), above.

(60) Section 641 .- Imposition of
Tax .- Whether the period of administra-
tion or settlement of an estate or a trust
(other than a trust described in § 664) is
reasonable or unduly prolonged.

(61) Section 642(c) .- Deduction for
Amounts Paid or Permanently Set Aside
for a Charitable Purpose .- Allowance of
an unlimited deduction for amounts set
aside by a trust or estate for charitable
purposes when there is a possibility that
the corpus of the trust or estate may be
invaded.

(62) Section 664 .- Charitable Remain-
der Trusts .- Whether the settlement of a
charitable remainder trust upon the termi-
nation of the noncharitable interest is
made within a reasonable period of time.

(63) Section 671 .- Trust Income, De-
ductions, and Credits Attributable to
Grantors and Others as Substantial Own-
ers .- Whether the grantor will be consid-
ered the owner of any portion of a trust
when (i) substantially all of the trust cor-
pus consists or will consist of insurance
policies on the life of the grantor or the
grantor's spouse, (ii) the trustee or any
other person has a power to apply the
trust's income or corpus to the payment of
premiums on policies of insurance on the
life of the grantor or the grantor's spouse,
(iii) the trustee or any other person has a
power to use the trust's assets to make
loans to the grantor's estate or to purchase
assets from the grantor's estate, and (iv)
there is a right or power in any person that
would cause the grantor to be treated as
the owner of all or a portion of the trust
under §§ 673 to 677.

(64) Section 704(b) .- Determination
of Distributive Share .- Whether the allo-
cation to a partner under the partnership
agreement of income, gain, loss, deduc-
tion, or credit (or an item thereof) has
substantial economic effect or is in accor-
dance with the partner's interest in the
partnership.

Sec. 3.01
January 2, 2014

(65) Section 704(e) .- Family Partner-
ships .- Matters relating to the validity of
a family partnership when capital is not a
material income producing factor.

(66) Section 761 .- See section
3.01(12), above.

(67) Section 856 .- Definition of Real
Estate Investment Trust .- Whether a cor-
poration whose stock is "paired" with or
"stapled" to stock of another corporation
will qualify as a real estate investment
trust under § 856, if the activities of the
corporations are integrated.

(68) Section 1001 .- See section
3.01(7), above.

(69) Section 1033 .- Involuntary Con-
versions .- Whether the replacement or
proposed replacement of compulsorily or
involuntarily converted property does or
does not qualify under § 1033(a), if the
taxpayer has already filed a Federal tax
return for the taxable year in which the
property was converted. The Service may
issue a determination letter in this case.
See section 12.01 of Rev. Proc. 2014-1,
this Bulletin.

(70) Section 1036 .- See section
3.01(45), above.

(71) Section 1221 .- Capital Asset De-
fined .- Whether specialty stock allocated
to an investment account by a registered
specialist on a national securities ex-
change is a capital asset.

(72) Section 1239 .- See section
3.01(43), above.

(73) Section 1502 .- Regulations .- If
a member of an affiliated group fails to
file Form 1122 or fails to join in the mak-
ing of a consolidated return due to a mis-
take of law or fact, or inadvertence,
whether such member will be treated as if
it had filed a Form 1122. The Service may
issue a determination letter in this case.
See section 12.01 of Rev. Proc. 2014-1,
this Bulletin.

(74) Section 1502 .- See section
3.01(33), above.

(75) Section 1551 .- Disallowance of
the Benefits of the Graduated Corporate
Rates and Accumulated Earnings Cred-
it .- Whether a transfer is within § 1551.

(76) Section 2031 .- Definition of
Gross Estate .- Actuarial factors for valu-
ing interests in the prospective gross es-
tate of a living person.

(77) Section 2055 .- Transfers for Pub-

lic, Charitable, and Religious Uses .-

Whether a charitable contribution deduc-
tion under § 2055 is allowed for the
transfer of an interest in a limited partner-
ship or a limited liability company taxed
as a partnership to an organization de-
scribed in § 2055(a).

(78) Section 2512 .- Valuation of
Gifts .- Actuarial factors for valuing pro-
spective or hypothetical gifts of a donor.

(79) Section 2522 .- Charitable and
Similar Gifts .- Whether a charitable con-
tribution deduction under § 2522 is allow-
able for a transfer of an interest in a lim-
ited partnership or a limited liability
company taxed as a partnership to an or-
ganization described in § 2522(a).

(80) Section 2601 .- Tax Imposed .-
Whether a trust exempt from generation-
skipping transfer (GST) tax under
§ 26.2601-1(b)(1), (2), or (3) of the
Generation-Skipping Transfer Tax Regu-
lations will retain its GST exempt status
when there is a modification of a trust,
change in the administration of a trust, or
a distribution from a trust in a factual
scenario that is similar to a factual sce-
nario set forth in one or more of the ex-
amples contained in § 26.2601-
1(b)(4)(i)(E).

(81) Sections 3121, 3306, and 3401 .-
Definitions .- For purposes of determin-
ing prospective employment status,
whether an individual will be an employee
or an independent contractor. A ruling
with regard to prior employment status
may be issued.

(82) Sections 3121, 3306, and 3401 .-
Definitions .- Who is the employer of an
"employee-owner" as defined in
§ 269A(b)(2).

(83) Sections 3121, 3306, and 3401 .-
Definitions .- For purposes of determin-
ing employment classification pursuant to
the filing of Form SS-8, Determination of
Worker Status for Purposes of Federal
Employment Taxes and Income Tax With-
holding, whether a worker is a bona fide
partner and, therefore, not an employee of
the business.

(84) Section 4191 .- Medical Devic-
es .- Whether a device (as defined in sec-
tion 201(h) of the Federal Food, Drug, and
Cosmetic Act) intended for humans is not
a "taxable medical device" within the
meaning of § 4191(b)(1) due to the appli-
cation of the exemption provided in
§ 4191(b)(2) for eyeglasses, contact

lenses, hearing aids, and any other medi-
cal device determined by the Secretary to
be of a type which is generally purchased
by the general public at retail for individ-
ual use.

(85) Section 4980B .- Failure to Sat-
isfy Continuation Coverage Requirements
of Group Health Plans .- Whether an ac-
tion is "gross misconduct" within the
meaning of § 4980B(f)(3)(B). (See section
3.05 of Rev. Proc. 87-28, 1987-1 C.B.
770, 771.)

(86) Section 6166 .- Extension of
Time for Payment of Estate Tax Where
Estate Consists Largely of Interest in
Closely Held Business .- Requests in-
volving § 6166 if there is no decedent.

(87) Section 6901 .- Transferred As-
sets .- Whether a taxpayer is liable for tax
as a transferee.

(88) Section 7701 .- Definitions .- The
classification of an instrument that has
certain voting and liquidation rights in an
issuing corporation but whose dividend
rights are determined by reference to the
earnings of a segregated portion of the
issuing corporation's assets, including as-
sets held by a subsidiary.

(89) Section 7701 .- See section
3.01(12), above.

(90) Section 7704 .- Certain Publicly
Traded Partnerships Treated as Corpora-
tions .- Whether interests in a partnership
that are not traded on an established secu-
rities market (within the meaning of
§ 7704(b) and § 1.7704-1(b) of the Pro-
cedure and Administration Regulations)
are readily tradable on a secondary market
or the substantial equivalent thereof under
§ 1.7704-1(c)(1).

.02 General Areas.

(1) Whether the economic substance
doctrine is relevant to any transaction or
whether any transaction complies with the
requirements of § 7701(o).

(2) The results of transactions that lack
a bona fide business purpose or have as
their principal purpose the reduction of
Federal taxes.

(3) A matter upon which a court deci-
sion adverse to the Government has been
handed down and the question of follow-
ing the decision or litigating further has
not yet been resolved.

(4) A matter involving alternate plans
of proposed transactions or involving hy-
pothetical situations.

(5) Whether under Subtitle F (Proce-
dure and Administration) reasonable
cause, due diligence, good faith, clear and
convincing evidence, or other similar
terms that require a factual determination
exist.

(6) A matter involving the regulations
governing practice before the Service un-
der 31 CFR Part 10 (reprinted as Treasury
Department Circular No. 230).

(7) Whether a proposed transaction
would subject the taxpayer to a criminal
penalty.

(8) Whether a completed transaction
can be rescinded for Federal income tax
purposes.

(9) Whether, under the common law
rules applicable in determining the
employer-employee relationship, a pro-
fessional staffing corporation (loan-out
corporation) or the subscriber is the em-
ployer of individuals, if:

(i) the loan-out corporation hires em-
ployees of the subscriber and assigns the
employees back to the subscriber, or

(ii) the loan-out corporation assigns in-
dividuals to subscribers for more than a
temporary period (1 year or longer).

(10) Questions that the Service deter-
mines, in its discretion, should not be an-
swered in the general interests of sound
tax administration, including due to re-
source constraints.

(11) Any frivolous issue, as that term is
defined in section 6.10 of Rev. Proc.
2014-1, this Bulletin.

(12) A request that does not comply
with the provisions of Rev. Proc. 2014-1,
this Bulletin.

## SECTION 4. AREAS IN WHICH RULINGS OR DETERMINATION LETTERS WILL NOT ORDINARILY BE ISSUED

.01 Specific Questions and Problems.

(1) Sections 38, 39, 46, and 48 .- Gen-
eral Business Credit; Carryback and Car-
ryforward of Unused Credits; Amount of
Credit; Energy Credit .- Application of
these sections if the formal ownership of
property is in a party other than the tax-
payer, except when title is held merely as
security.

(2) Section 61 .- Gross Income De-
fined .- Determination as to who is the

true owner of property in cases involving
the sale of securities, or participation in-
terests therein, if the purchaser has the
contractual right to cause the securities, or
participation interests therein, to be pur-
chased by either the seller or a third party.

(3) Sections 61 and 163 .- Gross In-
come Defined; Interest .- Determinations
as to who is the true owner of property or
the true borrower of money in cases in
which the formal ownership of the prop-
erty, or the liability for the indebtedness,
is in another party.

(4) Sections 83 and 451 .- Property
Transferred in Connection with Perfor-
mance of Services; General Rule for Tax-
able Year of Inclusion .- When compen-
sation is realized by a person who, in
connection with the performance of ser-
vices, is granted a nonstatutory option
without a readily ascertainable fair market
value to purchase stock at a price that is
less than the fair market value of the stock
on the date the option is granted.

(5) Section 103 .- Interest on State and
Local Bonds .- Whether the interest on
state or local bonds will be excludible
from gross income under § 103(a), if the
proceeds of issues of bonds (other than
advance refunding issues) are placed in
escrow or otherwise not expended for a
governmental purpose for an extended pe-
riod of time even though the proceeds are
invested at a yield that will not exceed the
yield on the state or local bonds prior to
their expenditure.

(6) Section 103 .- Interest on State and
Local Bonds .- Whether a state or local
governmental obligation that does not
meet the criteria of section 5 of Rev. Proc.
89-5, 1989-1 C.B. 774, is an "arbitrage
bond" within the meaning of former
§ 103(c)(2) solely by reason of the invest-
ment of the bond proceeds in acquired
nonpurpose obligations at a materially
higher yield more than 3 years after issu-
ance of the bonds or 5 years after issuance
of the bonds in the case of construction
issues described in former § 1.103-
13(a)(2)(ii)(E) or § 1.148-2(e)(2)(ii).

(7) Section 141 .- Private Activity
Bond; Qualified Bond .- Whether state or
local bonds will meet the "private busi-
ness use test" and the "private security or
payment test" under §141(b)(1) and (2) in
situations in which the proceeds are used

to finance certain output facilities and,
pursuant to a contract to take, or take or
pay for, a nongovernmental person pur-
chases 30 percent or more of the actual
output of the facility but 10 percent or less
of the: (i) subparagraph (5) output of the
facility as defined in § 1.103-
7(b)(5)(ii)(b) (issued under former
§ 103(b)), or (ii) available output of the
facility as defined in § 1.141-7(b)(1). In
similar situations, the Service will not or-
dinarily issue rulings or determination let-
ters concerning questions arising under
paragraphs (3), (4), and (5) of § 141(b).

(8) Sections 142 and 144(a) .- Exempt
Facility Bond; Qualified Small Issue
Bond .- Whether an issue of private activ-
ity bonds meets the requirements of § 142
or § 144(a), if the sum of-

(i) the portion of the proceeds used to
finance a facility in which an owner (or
related person) or a lessee (or a related
person) is a user of the facility both after
the bonds are issued and at any time be-
fore the bonds were issued, and

(ii) the portion used to pay issuance
costs and nonqualified costs equals more
than 5 percent of the net proceeds, as
defined in § 150(a)(3).

(9) Section 148 .- Arbitrage .- Whether
amounts received as proceeds from the sale
of municipal bond financed property and
pledged to the payment of debt service or
pledged as collateral for the municipal bond
issue are sinking fund proceeds within the
meaning of former § 1.103-13(g) (issued
under former § 103(c)) or replaced proceeds
described in § 148(a)(2) (or former
§ 103(c)(2)(B)).

(10) Sections 162 and 262 .- Trade or
Business Expenses; Personal, Living, and
Family Expenses .- Whether expenses are
nondeductible commuting expenses, ex-
cept for situations governed by Rev. Rul.
99-7, 1999-1 C.B. 361.

(11) Section 163 .- See section 4.01(3),
above.

(12) Section 165 .- Losses .- Whether
stock in a corporation has been aban-
doned.

(13) Section 167 .- Depreciation.

(i) Useful lives of assets.

(ii) Depreciation rates.

(iii) Salvage value of assets.

(14) Sections 167 and 168 .- Depreci-
ation; Accelerated Cost Recovery Sys-
tem .- Application of those sections in
which the formal ownership of property is
in a party other than the taxpayer except
when title is held merely as security.

(15) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a
transfer to a pooled income fund de-
scribed in § 642(c)(5) qualifies for a char-
itable contribution deduction under
§ 170(f)(2)(A).

(16) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a
transfer to a charitable remainder trust de-
scribed in § 664 that provides for annuity
or unitrust payments for one or two mea-
suring lives qualifies for a charitable de-
duction under § 170(f)(2)(A).

(17) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a tax-
payer who transfers property to a charita-
ble organization and thereafter leases back
all or a portion of the transferred property
may deduct the fair market value of the
property transferred and leased back as a
charitable contribution.

(18) Section 216 .- Deduction of
Taxes, Interest, and Business Deprecia-
tion by Cooperative Housing Corporation
Tenant-Stockholder .- If a cooperative
housing corporation (CHC), as defined in
§ 216(b)(1), transfers an interest in real
property to a corporation (not a CHC) in
exchange for stock or securities of the
transferee corporation, which engages in
commercial activity with respect to the
real property interest transferred, whether
(i) the income of the transferee corpora-
tion derived from the commercial activity,
and (ii) any cash or property (attributable
to the real property interest transferred)
distributed by the transferee corporation
to the CHC will be considered as gross
income of the CHC for the purpose of
determining whether 80 percent or more
of the gross income of the CHC is derived
from tenant-stockholders within the
meaning of § 216(b)(1)(D).

(19) Section 262 .- See section
4.01(10), above.

(20) Section 265(a)(2) .- Interest .-
Whether indebtedness is incurred or con-
tinued to purchase or carry obligations the
interest on which is wholly exempt from
the taxes imposed by subtitle A.

(21) Section 302 .- Distributions in
Redemption of Stock .- The tax effect of
the redemption of stock for notes, when
the payments on the notes are to be made
over a period in excess of 15 years from
the date of issuance of such notes.

(22) Section 302(b)(4) and (e) .- Re-
demption from Noncorporate Shareholder
in Partial Liquidation; Partial Liquidation
Defined .- Whether a distribution will
qualify as a distribution in partial liquida-
tion under § 302(b)(4) and (e)(1)(A), un-
less it results in a 20 percent or greater
reduction in (i) gross revenue, (ii) net fair
market value of assets, and (iii) employ-
ees. (Partial liquidations that qualify as
§ 302(e)(2) business terminations are not
subject to this provision.)

(23) Section 306 .- Dispositions of
Certain Stock .- Whether the distribution,
disposition, or redemption of "section 306
stock" in a closely held corporation is in
pursuance of a plan having as one of its
principal purposes the avoidance of Fed-
eral income taxes within the meaning of
§ 306(b)(4).

(24) Sections 331 and 346(a) .- Gain
or Loss to Shareholders in Corporate Liq-
uidations; Complete Liquidation .- The
tax effect of the liquidation of a corpora-
tion by a series of distributions, when the
distributions in liquidation are to be made
over a period in excess of 3 years from the
adoption of the plan of liquidation.

(25) Section 351 .- Transfer to Corpo-
ration Controlled by Transferor .-
Whether § 351 applies to the transfer of an
interest in real property by a cooperative
housing corporation (as described in
§ 216(b)(1)) to a corporation in exchange
for stock or securities of the transferee
corporation, if the transferee engages in
commercial activity with respect to the
real property interest transferred.

(26) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Whether the active business
requirement of § 355(b) is met when,
within the 5-year period described in
§ 355(b)(2)(B), a distributing corporation
acquired control of a controlled corpora-
tion as a result of the distributing corpo-
ration transferring cash or other liquid or
inactive assets to the controlled corpora-
tion in a transaction in which gain or loss
was not recognized as a result of the trans-

fer meeting the requirements of § 351(a)
or § 368(a)(1)(D).

(27) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Any issue under § 355(e) other
than whether a distribution and an acqui-
sition are part of a plan (i.e., any non-plan
issue). Notwithstanding the preceding
sentence, the Service generally will rule
on a non-plan issue or issues (e.g.,
whether a corporation constitutes a prede-
cessor of distributing) if an adverse ruling
on such non-plan issue or issues would
result in there being a direct or indirect
acquisition by one or more persons of
stock representing a 50-percent or greater
interest in the distributing corporation or
the controlled corporation that is part of a
plan under § 355(e).

(28) Section 441(i) .- Taxable Year of
Personal Service Corporations .- Whether
the principal activity of the taxpayer during
the testing period for the taxable year is the
performance of personal services within the
meaning of § 1.441-3(c)(1)(iii).

(29) Section 448(d)(2)(A) .- Limita-
tion on Use of Cash Method of Account-
ing; Qualified Personal Service Corpora-
tion .- Whether 95 percent or more of the
time spent by employees of the corpora-
tion, serving in their capacity as such, is
devoted to the performance of services
within the meaning of § 1.448-
1T(e)(4)(i).

(30) Section 451 .- General Rule for
Taxable Year of Inclusion .- The tax con-
sequences of a nonqualified deferred com-
pensation arrangement using a grantor
trust if the trust fails to meet the require-
ments of Rev. Proc. 92-64, 1992-2 C.B.
422.

(31) Section 451 .- General Rule for
Taxable Year of Inclusion .- The income
tax consequences as a result of being a
beneficiary of a trust that an Indian tribe
(as defined in 25 U.S.C. § 2703(5)) estab-
lishes to receive and invest per capita
payments for its members who are minors
or legal incompetents under the Indian
Gaming Regulatory Act (25 U.S.C.
§§ 2701 through 2721), if the trust meets
the requirements of section 5.02 of Rev.
Proc. 2011-56, 2011-49 I.R.B. 834.

(32) Section 451 .- See section 4.01(4),
above.

(33) Section 584 .- Common Trust
Funds .- Whether a common trust fund

## Sec. 4.01

plan meets the requirements of § 584. (For
§ 584 plan drafting guidance, see Rev.
Proc. 92-51, 1992-1 C.B. 988.)

(34) Section 642 .- Special Rules for
Credits and Deductions .- Whether a
pooled income fund satisfies the require-
ments described in § 642(c)(5).

(35) Section 664 .- Charitable Remain-
der Trusts .- Whether a charitable remain-
der trust that provides for annuity or uni-
trust payments for one or two measuring
lives or for annuity or unitrust payments
for a term of years satisfies the require-
ments described in § 664.

(36) Section 664 .- Charitable Remain-
der Trusts .- Whether a trust that will cal-
culate the unitrust amount under
§ 664(d)(3) qualifies as a § 664 charitable
remainder trust when a grantor, a trustee,
a beneficiary, or a person related or sub-
ordinate to a grantor, a trustee, or a ben-
eficiary can control the timing of the
trust's receipt of trust income from a part-
nership or a deferred annuity contract to
take advantage of the difference between
trust income under § 643(b) and income
for Federal income tax purposes for the
benefit of the unitrust recipient.

(37) Section 664 .- Charitable Remain-
der Trusts .- Whether the termination of a
charitable remainder trust before the end
of the trust term as defined in the trust's
governing instrument, in a transaction in
which the trust beneficiaries receive their
actuarial shares of the value of the trust
assets, causes the trust to have ceased to
qualify as a charitable remainder trust
within the meaning of § 664.

(38) Sections 671 to 679 .- Grantors
and Others Treated as Substantial Own-
ers .- In a nonqualified, unfunded de-
ferred compensation arrangement de-
scribed in Rev. Proc. 92-64, 1992-2 C.B.
422, the tax consequences of the use of a
trust, other than the model trust described
in that revenue procedure.

(39) Sections 671 to 679 .- Grantors
and Others Treated as Substantial Own-
ers .- Whether an Indian tribe (as defined
in 25 U.S.C. § 2703(5)) that establishes a
trust to receive and invest per capita pay-
ments for its members who are minors or
legal incompetents under the Indian Gam-
ing Regulatory Act (25 U.S.C. §§ 2701-
2721) is the grantor and owner of the trust,
if the trust meets the requirements of sec-

tion 5.02 of Rev. Proc. 2011-56, 2011-49
I.R.B. 834.

(40) Section 678 .- Person Other than
Grantor Treated as Substantial Owner .-
Whether a person will be treated as the
owner of any portion of a trust over which
that person has a power to withdraw the
trust property (or had such power prior to
a release or modification, but retains other
powers which would cause that person to
be the owner of the trust under § 671 if the
person were the grantor), other than a
power which would constitute a general
power of appointment within the meaning
of § 2041, if the trust purchases the prop-
erty from that person with a note and the
value of the assets with which the trust
was funded by the grantor is nominal
compared to the value of the property
purchased.

(41) Section 856 .- Definition of Real
Estate Investment Trust .- Whether an
outdoor advertising display constitutes
real property for purposes of § 856. How-
ever, if the real estate investment trust has
made an election under §1.1033(g)-
1(b), the Service may rule on whether an
asset that is not within the scope of the
election, but is related to the outdoor ad-
vertising display, constitutes real property
for purposes of § 856.

(42) Section 1001 .- Determination of
Amount of and Recognition of Gain or
Loss .- Whether the termination of a char-
itable remainder trust before the end of the
trust term as defined in the trust's govern-
ing instrument, in a transaction in which
the trust beneficiaries receive their actuar-
ial shares of the value of the trust assets, is
treated as a sale or other disposition by the
beneficiaries of their interests in the trust.

(43) Section 1031(f) .- Special Rules
for Exchanges Between Related Per-
sons .- Except in the case of (i) a transac-
tion involving an exchange of undivided
interests in different properties that results
in each taxpayer holding either the entire
interest in a single property or a larger
undivided interest in any of the properties
or (ii) a disposition of property in a non-
recognition transaction, whether an ex-
change described in § 1031(f) involving
related parties, or a subsequent disposition
of property involved in the exchange, has
as one of its principal purposes the avoid-
ance of Federal income tax, or is part of a
transaction (or series of transactions)

structured to avoid the purposes of
§ 1031(f).

(44) Section 1221 .- Capital Asset De-
fined .- Whether the termination of a
charitable remainder trust before the end
of the trust term as defined in the trust's
governing instrument, in a transaction in
which the trust beneficiaries receive their
actuarial shares of the value of the trust
assets, is treated as a sale or exchange of
a capital asset by the beneficiaries.

(45) Section 1362 .- Election; Revoca-
tion; Termination .- All situations in
which the Service has provided an auto-
matic approval procedure or administra-
tive procedure for an S corporation to
obtain relief for late S corporation, quali-
fied subchapter S subsidiary, qualified
subchapter S trust, or electing small busi-
ness trust elections. See Rev. Proc. 2013-
30, 2013-36 I.R.B. 173. (For instructions
on how to seek this relief, see the preced-
ing revenue procedure.)

(46) Section 1502 .- Regulations .-
Whether a parent cooperative housing
corporation (as defined in § 216(b)(1))
will be permitted to file a consolidated
income tax return with its transferee sub-
sidiary, if the transferee engages in com-
mercial activity with respect to the real
property interest transferred to it by the
parent.

(47) Sections 2035, 2036, 2037, 2038,
and 2042 .- Adjustments for Certain Gifts
Made Within Three Years of Decedent's
Death; Transfers with Retained Life Es-
tate; Transfers Taking Effect at Death;
Revocable Transfers; Proceeds of Life In-
surance .- Whether trust assets are includ-
ible in a trust beneficiary's gross estate
under § 2035, 2036, 2037, 2038, or 2042
if the beneficiary sells property (including
insurance policies) to the trust or dies
within 3 years of selling such property to
the trust, and (i) the beneficiary has a
power to withdraw the trust property (or
had such power prior to a release or mod-
ification, but retains other powers which
would cause that person to be the owner if
the person were the grantor), other than a
power which would constitute a general
power of appointment within the meaning
of § 2041, (ii) the trust purchases the
property with a note, and (iii) the value of
the assets with which the trust was funded
by the grantor is nominal compared to the
value of the property purchased.

Sec. 4.01

(48) Section 2036 .- See section
4.01(47), above.

(49)
Section
2037 .- See

section

4.01(47), above.

(50) Section
2038 .- See
section

4.01(47), above.

(51) Section
2042 .- See section
4.01(47), above.

(52) Section 2055 .- Transfers for Pub-
lic, Charitable, and Religious Uses .-
Whether a transfer to a pooled income
fund described in § 642(c)(5) qualifies for
a
charitable deduction under
§ 2055(e)(2)(A).

(53) Section 2055 .- Transfers for Pub-
lic, Charitable, and Religious Uses .-
Whether a transfer to a charitable remain-
der trust described in § 664 that provides
for annuity or unitrust payments for one or
two measuring lives or a term of years
qualifies for a charitable deduction under
§ 2055(e)(2)(A).

(54) Section 2501 .- Imposition of
Tax .- Whether the sale of property (in-
cluding insurance policies) to a trust by a
trust beneficiary will be treated as a gift
for purposes of § 2501 if (i) the benefi-
ciary has a power to withdraw the trust
property (or had such power prior to a
release or modification, but retains other
powers which would cause that person to
be the owner if the person were the
grantor), other than a power which would
constitute a general power of appointment
within the meaning of § 2041, (ii) the trust
purchases the property with a note, and
(iii) the value of the assets with which the
trust was funded by the grantor is nominal
compared to the value of the property
purchased.

(55) Section 2503 .- Taxable Gifts .-
Whether the transfer of property to a trust
will be a gift of a present interest in prop-
erty when (i) the trust corpus consists or
will consist substantially of insurance pol-
icies on the life of the grantor or the
grantor's spouse, (ii) the trustee or any
other person has a power to apply the
trust's income or corpus to the payment of
premiums on policies of insurance on the
life of the grantor or the grantor's spouse,
(iii) the trustee or any other person has a
power to use the trust's assets to make
loans to the grantor's estate or to purchase
assets from the grantor's estate, (iv) the
trust beneficiaries have the power to with-
draw, on demand, any additional transfers

made to the trust, and (v) there is a right or
power in any person that would cause the
grantor to be treated as the owner of all or
a portion of the trust under §§ 673 to 677.

(56) Section 2514 .- Powers of Ap-
pointment .- If the beneficiaries of a trust
permit a power of withdrawal to lapse,
whether § 2514(e) will be applicable to
each beneficiary in regard to the power
when (i) the trust corpus consists or will
consist substantially of insurance policies
on the life of the grantor or the grantor's
spouse, (ii) the trustee or any other person
has a power to apply the trust's income or
corpus to the payment of premiums on
policies of insurance on the life of the
grantor or the grantor's spouse, (iii) the
trustee or any other person has a power to
use the trust's assets to make loans to the
grantor's estate or to purchase assets from
the grantor's estate, (iv) the trust benefi-
ciaries have the power to withdraw, on
demand, any additional transfers made to
the trust, and (v) there is a right or power
in any person that would cause the grantor
to be treated as the owner of all or a
portion of the trust under §§ 673 to 677.

(57) Section 2522 .- Charitable and
Similar Gifts .- Whether a transfer to a
pooled income fund described in
§ 642(c)(5) qualifies for a charitable de-
duction under § 2522(c)(2)(A).

(58) Section 2522 .- Charitable and
Similar Gifts .- Whether a transfer to a
charitable remainder trust described in
§ 664 that provides for annuity or unitrust
payments for one or two measuring lives
or a term of years qualifies for a charitable
deduction under § 2522(c)(2)(A).

(59) Section 2601 .- Tax Imposed .-
Whether a trust that is exempt from the
application of the generation-skipping
transfer tax because it was irrevocable on
September 25, 1985, will lose its exempt
status if the situs of the trust is changed
from the United States to a situs outside of
the United States.

(60) Section 2702 .- Special Valuation
Rules in Case of Transfers of Interests in
Trusts .- Whether annuity interests are
qualified annuity interests under § 2702 if
the amount of the annuity payable annu-
ally is more than 50 percent of the initial
net fair market value of the property trans-
ferred to the trust, or if the value of the
remainder interest is less than 10 percent
of the initial net fair market value of the

property transferred to the trust. For pur-
poses of the 10 percent test, the value of
the remainder interest is the present value
determined under § 7520 of the right to
receive the trust corpus at the expiration
of the term of the trust. The possibility
that the grantor may die prior to the expi-
ration of the specified term is not taken
into account, nor is the value of any re-
version retained by the grantor or the
grantor's estate.

(61) Section 2702 .- Special Valuation
Rules in Case of Transfers of Interests in
Trusts .- Whether a trust with one term
holder satisfies the requirements of
§ 2702(a)(3)(A) and § 25.2702-5(c) to be
a qualified personal residence trust.

(62) Section 2702 .- Special Valuation
Rules in Case of Transfers of Interests in
Trusts .- Whether the sale of property (in-
cluding insurance policies) to a trust by a
trust beneficiary is subject to § 2702 if (i)
the beneficiary has a power to withdraw
the trust property (or had such power prior
to a release or modification, but retains
other powers which would cause that per-
son to be the owner if the person were the
grantor), other than a power which would
constitute a general power of appointment
within the meaning of § 2041, (ii) the trust
purchases the property with a note, and
(iii) the value of the assets with which the
trust was funded by the grantor is nominal
compared to the value of the property
purchased.

(63) Section 3121 .- Definitions .- De-
terminations as to which of two entities,
under common law rules applicable in de-
termining the employer-employee rela-
tionship, is the employer, when one entity
is treating the worker as an employee.

.02 General Areas.

(1) Any matter in which the determi-
nation requested is primarily one of fact,
e.g., market value of property, or whether
an interest in a corporation is to be treated
as stock or indebtedness. Although it is
generally inappropriate for the Service to
issue a letter ruling on whether an interest
in a corporation is stock or indebtedness,
there may be instances in which the Ser-
vice may issue a letter ruling. For exam-
ple, the Service may issue a letter ruling
with respect to an instrument issued by a
domestic corporation if (i) the taxpayer
believes that the facts strongly support the
classification of the instrument as stock

## Sec. 4.02 January 2, 2014

and (ii) the taxpayer can demonstrate that
there are unique and compelling reasons
to justify the issuance of a letter ruling.
Before preparing the letter ruling request,
a taxpayer should call the Office of the
Associate Chief Counsel having jurisdic-
tion for the matters on which the taxpayer
is seeking a letter ruling to discuss
whether the Service will consider issuing
a letter ruling for a particular factual sit-
uation. To determine which associate of-
fice has jurisdiction over a particular issue
see section 3 of Rev. Proc. 2014-1, this
Bulletin. For a list of telephone numbers
for the different associate offices, see sec-
tion 10.07 of Rev. Proc. 2014-1.

(2) Situations in which the requested
ruling deals with only part of an integrated
transaction. Generally, a letter ruling will
not be issued on only part of an integrated
transaction. If, however, a part of a trans-
action falls under a no-rule area, a letter
ruling on other parts of the transaction
may be issued. Before preparing the letter
ruling request, a taxpayer should call the
Office of the Associate Chief Counsel
having jurisdiction for the matters on
which the taxpayer is seeking a letter rul-
ing to discuss whether a letter ruling will
be issued on part of the transaction. To
determine which associate office has ju-
risdiction over a particular issue, see sec-
tion 3 of Rev. Proc. 2014-1, this Bulletin.
For a list of telephone numbers for the
different associate offices, see section
10.07 of Rev. Proc. 2014-1.

Notwithstanding the previous para-
graph, in connection with transactions de-
scribed in § 332, 351, 355, or 1036 and
reorganizations within the meaning of
§ 368, the Associate Chief Counsel (Cor-
porate) may issue a letter ruling on part of
an integrated transaction if and to the ex-
tent that the transaction presents a signif-
icant issue (within the meaning of section
3.01(45)). See section 6.03 of Rev. Proc.
2014-1.

(3) Situations in which two or more
items or sub-methods of accounting are
interrelated. If two or more items or sub-
methods of accounting are interrelated, or-
dinarily a letter ruling will not be issued
on a change in accounting method involv-
ing only one of the items or sub-methods.

(4) The tax effect of any transaction to
be consummated at some indefinite future
time.

(5) Any matter dealing with the ques-
tion of whether property is held primarily
for sale to customers in the ordinary
course of a trade or business.

(6) The tax effect of a transaction if any
part of the transaction is involved in liti-
gation among the parties affected by the
transaction, except for transactions in-
volving bankruptcy reorganizations.

(7) (a) Situations in which the taxpayer
or a related party is domiciled or orga-
nized in a foreign jurisdiction with which
the United States does not have an effec-
tive mechanism for obtaining tax informa-
tion with respect to civil tax examinations
and criminal tax investigations, which
would preclude the Service from obtain-
ing information located in such jurisdic-
tion that is relevant to the analysis or
examination of the tax issues involved in
the ruling request.

(b) The provisions of subsection (a)
above shall not apply if the taxpayer or
affected related party (i) consents to the
disclosure of all relevant information re-
quested by the Service in processing the
ruling request or in the course of an ex-
amination in order to verify the accuracy
of the representations made and to other-
wise analyze or examine the tax issues
involved in the ruling request, and (ii)
waives all claims to protection of bank or
commercial secrecy laws in the foreign
jurisdiction with respect to the informa-
tion requested by the Service. In the event
the taxpayer's or related party's consent to
disclose relevant information or to waive
protection of bank or commercial secrecy
is determined by the Service to be inef-
fective or of no force and effect, then the
Service may retroactively rescind any rul-
ing rendered in reliance on such consent.

(8) A matter involving the Federal tax
consequences of any proposed Federal,
state, local, municipal, or foreign legisla-
tion. The Service may provide general
information in response to an inquiry.
However, the Office of Division Counsel/
Associate Chief Counsel (Tax Exempt
and Government Entities) may issue letter
rulings regarding the effect of proposed
state, local, or municipal legislation upon
an eligible deferred compensation plan
under § 457(b) provided that the letter
ruling request relating to the plan com-
plies with the other requirements of Rev.
Proc. 2014-1, this Bulletin.

(9) A letter ruling will not be issued
with respect to an issue that is clearly and
adequately addressed by statute, regula-
tions, decision of a court, revenue rulings,
revenue procedures, notices, or other au-
thority published in the Internal Revenue
Bulletin (Comfort Ruling). However, ex-
cept with respect to issues under §§ 332,
351, 355, 368, and 1036 and the tax con-
sequences resulting from the application
of such Code sections (see generally sec-
tion 6.03 of Rev. Proc. 2014-1, this Bul-
letin), an Associate office may in its dis-
cretion issue a Comfort Ruling if the
Associate office is otherwise ruling on
another issue arising in the same transac-
tion.

(10) Whether an amount received (in
periodic payments or as a lump sum) in
connection with a legal action or a settle-
ment of a legal action is properly allocated
(including an allocation of all payments to
one category) to recovery of capital, com-
pensatory damages, punitive damages,
dividends, interest, back pay, etc., for Fed-
eral tax purposes.

(11) The treatment or effects of hook
equity, including as a result of its issu-
ance, ownership, or redemption. This
paragraph ordinarily shall not apply if (i)
an interest's status as hook equity is only
transitory, such as in a triangular reorga-
nization, or (ii) the treatment of the hook
equity is not relevant to the treatment of
the overall transaction and issue pre-
sented. For this purpose, "hook equity"
means an ownership interest in a business
entity (such as stock in a corporation) that
is held by another business entity in which
at least 50 percent of the interests (by vote
or value) in such latter entity are held
directly or indirectly by the former entity.
However, if an entity directly or indirectly
owns all of the equity interests in another
entity, the equity interests in the latter
entity are not hook equity.

SECTION 5. AREAS UNDER
STUDY IN WHICH RULINGS OR
DETERMINATION LETTERS WILL
NOT BE ISSUED UNTIL THE
SERVICE RESOLVES THE ISSUE
THROUGH PUBLICATION OF A
REVENUE RULING, A REVENUE
PROCEDURE, REGULATIONS, OR
OTHERWISE

.01 Specific Questions and Problems.

Sec. 5.01
January 2, 2014

(1) Section 62(c) .- Certain Arrange-
ments Not Treated as Reimbursement Ar-
rangements .- Whether amounts related to
a salary reduction and paid under a pur-
ported reimbursement or other expense
allowance arrangement will be treated as
paid under an "accountable plan" in ac-
cordance with § 1.62-2(c)(2).

(2) Sections 101 and 7702 .- Certain
Death Benefits; Life Insurance Contract
Defined .- Whether amounts received un-
der an arrangement that is not regulated as
an insurance company may be treated as
received under a "life insurance contract"
within the meaning of §§ 101(a) and 7702.

(3) Section 148 .- Arbitrage .-
Whether a taxpayer has permission to use
a single yield for two or more issues of
qualified mortgage bonds or qualified stu-
dent loan bonds under § 1.148-4(a).

(4) Sections 162 and 1502 .- Trade or
Business Expenses; Regulations .- Treat-
ment of manufacturer incentive payments
under the intercompany transaction regu-
lations of § 1.1502-13. See T.D. 9261,
2006-1 C.B. 919.

(5) Section 162(m) .- Certain Exces-
sive Employee Remuneration .- Whether
the deduction limit under § 162(m) ap-
plies to compensation attributable to ser-
vices performed for a related partnership.

(6) Sections 302 and 304 .- Distribu-
tions in Redemption of Stock; Redemp-
tions Through Use of Related Corpora-
tions .- Treatment of basis in a §§ 302/
304 redemption. See Announcement
2006-30, 2006-1 C.B. 879.

(7) Section 304 .- See section 5.01(6),
above.

(8) Sections 351, 358, and 362 .-
Transfer to Corporation Controlled by
Transferor; Basis to Distributees; Basis to
Corporations .- The issues described as
being under study in Rev. Rul. 2006-2,
2006-1 C.B. 261.

(9) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Whether a corporation is a
"controlled corporation" within the mean-
ing of § 355(a)(1)(A) if, in anticipation of
a distribution of the stock of the corpora-
tion, a distributing corporation acquires
putative control of the controlled corpora-
tion (directly or through one or more cor-
porations) in any transaction (including a
recapitalization) in which stock or securi-
ties were exchanged for stock having a

greater voting power than the stock or
securities relinquished in the exchange, or
if, in anticipation of a distribution of the
stock of the putative controlled corpora-
tion, such corporation issues stock to an-
other person having different voting
power per share than the stock held by the
distributing corporation.

(10) Sections 355 and 361 .- Distribu-
tion of Stock and Securities of a Con-
trolled Corporation; Nonrecognition of
Gain or Loss to Corporations; Treatment
of Distributions .- Whether either § 355
or § 361 applies to a distributing corpora-
tion's distribution of stock or securities of
a controlled corporation in exchange for,
and in retirement of, any putative debt of
the distributing corporation if such distrib-
uting corporation debt is issued in antici-
pation of the distribution.

(11) Section 358 .- See section 5.01(8),
above.

(12) Section 361 .- See section
5.01(10), above.

(13) Section 362 .- See section 5.01(8),
above.

(14) Section 451 .- General Rule for
Taxable Year of Inclusion .- The income
tax consequences as a result of being a
beneficiary of a trust that an Indian tribe
(as defined in 25 U.S.C. § 2703(5)) estab-
lishes to receive and invest per capita
payments for its members (regardless of
whether they are minors or legal incom-
petents) under the Indian Gaming Regu-
latory Act (25 U.S.C. §§ 2701-2721) if
the trust does not meet the requirements of
section 5.02 of Rev. Proc. 2011-56,
2011-49 I.R.B. 834.

(15) Section 613A .- Limitations on
Percentage Depletion in Case of Oil and
Gas Wells .- Whether the sale of oil or
gas, or any product derived from oil or
gas, is a bulk sale for purposes of
§ 613A(d)(2).

(16) Sections 661 and 662 .- Deduc-
tion for Estates and Trusts Accumulating
Income or Distributing Corpus; Inclusion
of Amounts in Gross Income of Benefi-
ciaries of Estates and Trusts Accumulat-
ing Income or Distributing Corpus .-
Whether the distribution of property by a
trustee from an irrevocable trust to an-
other irrevocable trust (sometimes re-
ferred to as a "decanting") resulting in a
change in beneficial interests is a distribu-
tion for which a deduction is allowable

under § 661 or which requires an amount
to be included in the gross income of any
person under § 662.

(17) Sections 671 to 679 .- Grantors
and Others Treated as Substantial Own-
ers .- Whether an Indian tribe (as defined
in 25 U.S.C. § 2703(5)) that establishes a
trust to receive and invest per capita pay-
ments for its members (regardless of
whether they are minors or legal incom-
petents) under the Indian Gaming Regu-
latory Act (25 U.S.C. §§ 2701 to 2721) is
the grantor and owner of the trust if the
trust does not meet the requirements of
section 5.02 of Rev. Proc. 2011-56,
2011-49 I.R.B. 834.

(18) Section 1361 .- S Corporation De-
fined .- Whether a state law limited part-
nership electing under § 301.7701-3 to be
classified as an association taxable as a
corporation has more than one class of
stock for purposes of § 1361(b)(1)(D).
The Service will treat any request for a
ruling on whether a state law limited part-
nership is eligible to elect S corporation
status as a request for a ruling on whether
the partnership complies with
§ 1361(b)(1)(D).

(19) Section 1502 .- See section
5.01(4), above.

(20) Section 2036 .- Transfers with
Retained Life Estate .- Whether the cor-
pus of a trust will be included in a grant-
or's estate when the trustee of the trust is
a private trust company owned partially or
entirely by members of the grantor's fam-
ily.

(21) Section 2038 .- Revocable Trans-
fers .- Whether the corpus of a trust will
be included in a grantor's estate when the
trustee of the trust is a private trust com-
pany owned partially or entirely by mem-
bers of the grantor's family.

(22) Section 2041 .- Powers of Ap-
pointment .- Whether the corpus of a trust
will be included in an individual's estate
when the trustee of the trust is a private
trust company owned partially or entirely
by members of the individual's family.

(23) Section 2501 .- Imposition of
Tax .- Whether the distribution of prop-
erty by a trustee from an irrevocable trust
to another irrevocable trust (sometimes
referred to as a "decanting") resulting in a
change in beneficial interests is a gift un-
der § 2501.

## Sec. 5.01

(24) Sections 2601 and 2663 .- Tax
Imposed; Regulations .- Whether the dis-
tribution of property by a trustee from an
irrevocable generation-skipping transfer
tax (GST) exempt trust to another irrevo-
cable trust (sometimes referred to as a
"decanting") resulting in a change in ben-
eficial interests is the loss of GST exempt
status or constitutes a taxable termination
or taxable distribution under § 2612.

(25) Section 6050P .- Returns Relating
to the Cancellation of Indebtedness by
Certain Entities .- Whether amounts re-
duced pursuant to the terms of a debt
instrument are reportable under § 6050P
and the regulations.

(26) Section 6109 .- Identifying Num-
bers .- The proper assignment or retention
of an employer identification number
(EIN) in the case of a reorganization
within the meaning of § 368(a)(1)(F) if
the transferor corporation becomes disre-
garded as an entity separate from its
owner under § 301.7701-3.

(27) Section 7702 .-- See section
5.01(2), above.

.02 General Areas.

Whether transfers of stock, money, or
other property by a person to a corpora-
tion and transfers of stock, money, or
property by that corporation to that person
(or a person related to such person) in
what are ostensibly two separate transac-
tions (so-called "north-south" transac-
tions), at least one of which is a distribu-
tion with respect to the corporation's
stock, a contribution to the corporation's
capital, or an acquisition of stock, are re-
spected as separate transactions for Fed-
eral income tax purposes.

## SECTION 6. AREAS COVERED BY AUTOMATIC APPROVAL PROCEDURES IN WHICH RULINGS WILL NOT ORDINARILY BE ISSUED

.01 Section 338 .- Certain Stock Pur-
chases Treated as Asset Acquisitions .-
All requests for an extension of time un-
der § 301.9100-3 within which to make
an election under § 338(g) or (h)(10)
where the Service has provided an admin-
istrative procedure to seek such an exten-
sion. See Rev. Proc. 2003-33, 2003-1
C.B. 803 (extension automatically granted
to certain persons required to file Form
8023 to make a valid section 338 election

that have not filed Form 8023 by its due
date).

.02 Section 442 .- Change of Annual
Accounting Period .- All requests for a
change in annual accounting period where
the Service has provided an automatic
change procedure for obtaining such a
change in annual accounting period. See
Rev. Proc. 2002-39, 2002-1 C.B. 1046
(general procedures for prior approval), as
clarified and modified by Notice 2002-72,
2002-2 C.B. 843, and modified by Rev.
Proc. 2003-34, 2003-1 C.B. 856; Rev.
Proc. 2006-45, 2006-2 C.B. 851 (certain
corporations), as clarified and modified by
Rev. Proc. 2007-64, 2007-2 C.B. 818;
Rev. Proc. 2006-46, 2006-2 C.B. 859
(partnership, S corporation, personal ser-
vice corporation, or trust); and Rev. Proc.
2003-62, 2003-2 C.B. 299 (individual
seeking a calendar year).

.03 Section 446 .- General Rule for
Methods of Accounting .- Except as oth-
erwise specifically provided in applicable
procedures published in the Internal Rev-
enue Bulletin, all requests for a change in
method of accounting where the Service
has provided an automatic change request
procedure for obtaining such a change in
method of accounting. See the automatic
change request procedures listed in sec-
tion 9.22 of Rev. Proc. 2014-1, this Bul-
letin.

.04 Section 461 .- General Rule for
Taxable Year of Deduction .- All requests
for making or revoking an election under
§ 461 where the Service has provided an
administrative procedure for making or
revoking such an election under § 461.
See Rev. Proc. 92-29, 1992-1 C.B. 748
(dealing with the use of an alternative
method for including in basis the esti-
mated cost of certain common improve-
ments in a real estate development).

.05 Section 704(c) .- Contributed
Property .- Requests from Qualified Mas-
ter Feeder Structures, as described in sec-
tion 4.02 of Rev. Proc. 2001-36, 2001-1
C.B. 1326, for permission to aggregate
built-in gains and losses from contributed
qualified financial assets for purposes of
making § 704(c) and reverse § 704(c)
allocations.

.06 Section 1362 .- Election; Revoca-
tion; Termination .- All situations in
which an S corporation qualifies for auto-

matic late S corporation relief under Rev.
Proc. 2013-30, 2013-36 I.R.B. 173.

.07 Sections 1502, 1504, and 1552 .-
Regulations; Definitions; Earnings and
Profits .- All requests for waivers or con-
sents on consolidated return issues where
the Service has provided an administrative
procedure for obtaining such waivers or
consents on consolidated return issues.
See Rev. Proc. 2002-32, 2002-1 C.B.
959, as modified by Rev. Proc. 2006-21,
2006-1 C.B. 1050 (certain corporations
seeking reconsolidation within the 5-year
period specified in § 1504(a)(3)(A)); Rev.
Proc. 90-39, 1990-2 C.B. 365, as modi-
fied by Rev. Proc. 2006-21, and as clari-
fied by Rev. Proc. 90-39A, 1990-2 C.B.
367 (certain affiliated groups of corpora-
tions seeking, for earnings and profits de-
terminations, to make an election or a
change in their method of allocating the
group's consolidated Federal income tax
liability); and Rev. Proc. 89-56, 1989-2
C.B. 643, as modified by Rev. Proc.
2006-21 (certain affiliated groups of cor-
porations seeking to file a consolidated
return in which member(s) of the group
use a 52-53 week taxable year).

.08 Section 7701 .- Definitions .- All
requests for an extension of time under
§ 301.9100-3 within which to make an
entity classification election under
§ 301.7701-3 where the Service has pro-
vided an administrative procedure to seek
such an extension. See Rev. Proc. 2009-
41, 2009-39 I.R.B. 439 (extension auto-
matically granted to certain persons re-
quired to file Form 8832 to make a valid
entity classification election that have not
filed Form 8832 by its due date).

## SECTION 7. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 2013-3, 2013-1 I.R.B. 113
is superseded, and Rev. Proc. 2013-32,
2013-28 I.R.B. 55, is superseded in part.

## SECTION 8. EFFECTIVE DATE

This revenue procedure is effective
January 2, 2014.

## SECTION 9. PAPERWORK REDUCTION ACT

The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Office

Sec. 9

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 spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less the collection of information displays
a valid control number.

The collections of information in this
revenue procedure are in sections 2.03 and
3.01(45).

This information is required to evalu-
ate whether the request for a letter ruling
or determination letter is not covered by
the provisions of this revenue procedure.
The collections of information are re-
quired to obtain a letter ruling or determi-

nation letter. The likely respondents are
businesses or other for-profit institutions.

The estimated total annual reporting
and/or recordkeeping burden of this reve-
nue procedure, and Rev. Proc. 2014-1,
this Bulletin is 305,540 hours.

The estimated annual burden per re-
spondent/recordkeeper varies from 1 hour
to 200 hours, depending on individual cir-
cumstances, with an estimated average
burden of 79.88 hours. The estimated
number of respondents and/or record
keepers is 3,825.

The estimated annual frequency of re-
sponses is on occasion.

Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-

rial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. § 6103.

## DRAFTING INFORMATION

The principal author of this revenue
procedure is Amie Colwell Breslow of the
Office of the Associate Chief Counsel
(Corporate). For further information about
this revenue procedure, please contact Ms.
Colwell Breslow at (202) 317-5024 (not a
toll-free call), or call the associate office
contacts listed in section 10.07 of Rev.
Proc. 2014-1, this Bulletin. See section 3
of Rev. Proc. 2014-1 to determine which
associate office has jurisdiction over a
particular issue.

### Rev. Proc. 2014-4

TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

128

SECTION 2. WHAT CHANGES HAVE BEEN MADE TO REV. PROC. 2013-4?

128

SECTION 3. IN WHAT FORM IS GUIDANCE PROVIDED BY THE COMMISSIONER, TAX EXEMPT AND GOVERNMENT ENTITIES DIVISION?

129

.01 In general

129

.02 Letter ruling

129

.03 Closing agreement

129

.04 Determination letter

130

.05 Opinion letter.

130

.06 Information letter

130

.07 Revenue ruling

130

.08 Oral advice

130

(1) No oral rulings, and no written rulings in response to oral requests.

130

(2) Discussion possible on substantive issues.

131

.09 Nonbank trustee requests

131

.10 Compliance Statement.

131

.11 Advisory letter

132

SECTION 4. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER THIS PROCEDURE?

132

SECTION 5. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER DIFFERENT PROCEDURES?

132

.01 Determination letters

132

.02 Master and prototype plans and volume submitter plans

132

.03 Closing agreement program for defined contribution plans that purchased GICs or GACs.

132

.04 Employee Plans Compliance Resolution System

132

.05 Chief Counsel

132

.06 Alcohol, tobacco, and firearms taxes

132

SECTION 6. UNDER WHAT CIRCUMSTANCES DOES TE/GE ISSUE LETTER RULINGS?

132

.01 In exempt organizations matters

132

.02 In employee plans matters

133

.03 In qualifications matters

133

.04 Request for extension of time for making an election or for other relief under § 301.9100-1 of the Procedure and Administration Regulations

134

.05 Issuance of a letter ruling before the issuance of a regulation or other published guidance

134

.06 Issues in prior return

134

.07 Generally not to business associations or groups

135

.08 Generally not to foreign governments

135

.09 Generally not on federal tax consequences of proposed legislation

135

.10 Not on certain matters under § 53.4958-6 of the Foundation and Similar Excise Taxes Regulations.

135

.11 Not on stock options

135

.12 Generally not on EO joint venture with a for-profit organization

135

.13 Not on qualification of state run programs under § 529

135

.14 Not on UBIT issues involving certain investments of a charitable lead trust.

135

.15 Not on issues under § 4966 or § 4967.

135

.16 Not on issues under § 507, § 4941, or § 4945

135

.17 Generally not to partnerships or limited liability companies

135

.18 Not on self-dealing issues involving the issuance of a promissory note by a disqualified person during the administration of an estate or trust.

136

SECTION 7. UNDER WHAT CIRCUMSTANCES DOES EP OR EO DETERMINATIONS ISSUE

DETERMINATION LETTERS?

136

.01 Circumstances under which determination letters are issued

136

.02 In general

136

.03 In employee plans matters

136

.04 In exempt organizations matters

136

.05 Circumstances under which determination letters are not issued.

137

.06 Requests involving returns already filed

137

.07 Attach a copy of determination letter to taxpayer's return

137

.08 Review of determination letters

137

SECTION 8. UNDER WHAT CIRCUMSTANCES DOES THE SERVICE HAVE DISCRETION TO ISSUE

LETTER RULINGS AND DETERMINATION LETTERS?

138

.01 Ordinarily not in certain areas because of factual nature of the problem

138

.02 No "comfort" letter rulings

138

.03 Not on alternative plans or hypothetical situations

138

.04 Ordinarily not on part of an integrated transaction

138

.05 Not on partial terminations of employee plans

138

.06 Law requires letter ruling

138

.07 Issues under consideration by PBGC or DOL

138

.08 Cafeteria plans

138

.09 Determination letters

138

.10 Domicile in a foreign jurisdiction

138

.11 Employee Stock Ownership Plans

139

.12 Governmental Plans

139

SECTION 9. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS

AND DETERMINATION LETTERS?

139

.01 In general

139

.02 Certain information required in all requests

139

(1) Complete statement of facts and other information

139

(2) Copies of all contracts, wills, deeds, agreements, instruments, plan documents, and other documents

140

(3) Analysis of material facts

140

(4) Statement regarding whether same issue is in an earlier return

140

(5) Statement regarding whether same or similar issue was previously ruled on or requested, or is currently pending.

140

(6) Statement of supporting authorities

141

(7) Statement of contrary authorities

141

(8) Statement identifying pending legislation

141

(9) Statement identifying information to be deleted from copy of letter ruling or determination letter for public inspection

141

(10) Signature by taxpayer or authorized representative

143

(11) Authorized representatives

143

(12) Power of attorney and declaration of representative

144

(13) Penalties of perjury statement.

144

(14) Applicable user fee

145

(15) Number of copies of request to be submitted

145

(16) Sample format for a letter ruling request

145

(17) Checklist for letter ruling requests

145

.03

Additional information required in certain circumstances

145

(1) To request separate letter rulings for multiple issues in a single situation

146

(2) Recipient of original of letter ruling or determination letter.

146

(3) To request expedited handling.

146

(4) To receive a letter ruling or submit a request for a letter ruling by facsimile transmission (fax)

147

(5) To request a conference

147

.04 Address to send the request

147

(1) Requests for letter rulings

147

(2) Requests for information letters

148

(3) Requests for determination letters

148

.05 Pending letter ruling requests

148

.06 When to attach letter ruling to return

148

.07 How to check on status of request

148

.08 Request may be withdrawn or EP or EO Technical may decline to issue letter ruling

149

.09 Compliance with Treasury Department Circular No. 230

149

SECTION 10. WHAT SPECIFIC, ADDITIONAL PROCEDURES APPLY TO CERTAIN REQUESTS?

149

.01 In general

149

.02 Exempt Organizations

149

.03 Employee Plans

149

SECTION 11. HOW DOES EP OR EO TECHNICAL HANDLE LETTER RULING REQUESTS?

150

.01 In general

150

.02 Is not bound by informal opinion expressed

150

.03 Tells taxpayer if request lacks essential information during initial contact

150

.04 Requires prompt submission of additional information requested after initial contact.

150

.05 Near the completion of the ruling process, advises taxpayer of conclusions and, if the Service will rule adversely, offers the taxpayer the opportunity to withdraw the letter ruling request

151

.06 May request draft of proposed letter ruling near the completion of the ruling process

151

SECTION 12. HOW ARE CONFERENCES SCHEDULED?

152

.01 Schedules a conference if requested by taxpayer

152

.02 Permits taxpayer one conference of right

152

.03 Disallows verbatim recording of conferences

152

.04 Makes tentative recommendations on substantive issues

152

.05 May offer additional conferences

152

.06 Requires written confirmation of information presented at conference

153

.07 May schedule a pre-submission conference

153

.08 Under limited circumstances, may schedule a conference to be held by telephone

153

.09 Conference rules for EO determination letters not subject to § 7428 or § 501 or § 521

153

SECTION 13. WHAT EFFECT WILL A LETTER RULING HAVE?

153

.01 May be relied on subject to limitations

153

.02 Will not apply to another taxpayer.

153

.03 Will be used by TE/GE in examining the taxpayer's return

153

.04 May be revoked or modified if found to be in error

154

.05 Not generally revoked or modified retroactively

154

.06 Retroactive effect of revocation or modification applied only to a particular transaction

155

.07 Retroactive effect of revocation or modification applied to a continuing action or series of actions.

155

.08 May be retroactively revoked or modified when transaction is completed without reliance on the letter ruling

155

.09 Taxpayer may request that retroactivity be limited

155

(1) Request for relief under § 7805(b) must be made in required format

155

(2) Taxpayer may request a conference on application of § 7805(b)

156

SECTION 14. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?

156

.01 Has same effect as a letter ruling

156

.02 Taxpayer may request that retroactive effect of revocation or modification be limited
156

(1) Request for relief under § 7805(b) must be made in required format
156

(2) Taxpayer may request a conference on application of § 7805(b)
157

(3) Taxpayer steps in exhausting administrative remedies
157

SECTION 15. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN
DETERMINATIONS AND TECHNICAL?
157

.01 Requests for determination letters

157

.02 No-rule areas

157

.03 Requests for letter rulings

157

SECTION 16. WHAT ARE THE GENERAL PROCEDURES APPLICABLE TO INFORMATION
LETTERS ISSUED BY THE SERVICE?
157

.01 Will be made available to the public
157

.02 Deletions made under the Freedom of Information Act
158

.03 Effect of information letters

158

SECTION 17. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?

158

SECTION 18. EFFECTIVE DATE

158

SECTION 19. PAPERWORK REDUCTION ACT

158

DRAFTING INFORMATION

159

INDEX
160

APPENDIX A-SAMPLE FORMAT FOR A LETTER RULING REQUEST

161

APPENDIX B-CHECKLIST FOR A LETTER RULING REQUEST.

163

APPENDIX C-ADDITIONAL CHECKLIST FOR ROTH IRA RECHARACTERIZATIONS.

166

APPENDIX D-ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLANS.

167

APPENDIX E-ADDITIONAL CHECKLIST FOR CHURCH PLANS ..

168

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

This revenue procedure explains how the Internal Revenue Service gives guidance to taxpayers on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. It explains the kinds of guidance and the manner in which guidance is requested by taxpayers and provided by the Service. A sample format of a request for a letter ruling is provided in Appendix A.

SECTION 2. WHAT CHANGES HAVE BEEN MADE TO REV. PROC. 2013-4?

.01 This revenue procedure is a general update of Rev. Proc. 2013-4, 2013-1 I.R.B. 126 which contains the Service's general procedures for employee plans and exempt organizations letter ruling requests. In addition to minor revisions, such as updating citations to other revenue procedures, the following changes have been made: .02 Revenue Procedure 2008-50 has been superseded by Revenue Procedure 2013-12 and cites throughout have been changed accordingly;

.03 Sections 3.05, 3.11 and 5.02 have been modified to include references to Revenue Procedure 2013-22;

.04 Section 6.02(10) has been modified by changing the term "Headquarters office" to "Employee Plans Technical office";

.05 Section 7.02 has been modified to clarify that EP Determinations does not issue determination letters on § 403(b) plans;

.06 Section 9.03(3) has been modified to clarify that determination letter requests are not
eligible for expedited handling;

.07 Section 11.06 has been modified to change the names and phone numbers of Service
representatives;

.08 Section 16 has been modified by changing the term "Headquarters office" to "Service";

.09 Appendix B has been modified to change the phone numbers and the reference to
"Headquarters office";

.10 Appendix C has been modified by removing the references to "husband and wife" and
replacing it with "a married couple," "parties" or "spouse"; and

.11 Appendix E has been modified to clarify the requirements for church plan ruling requests.

SECTION 3. IN WHAT
FORM IS GUIDANCE
PROVIDED BY THE
COMMISSIONER, TAX
EXEMPT AND
GOVERNMENT
ENTITIES DIVISION?
In general

.01 The Service provides guidance in the form of letter rulings, closing agreements,
compliance statements, determination letters, opinion letters, advisory letters, information letters,
revenue rulings, and oral advice.

### Letter ruling

.02 A "letter ruling" is a written statement issued to a taxpayer by the Service's Employee
Plans Technical office or Exempt Organizations Technical office that interprets and applies the
tax laws or any nontax laws applicable to employee benefit plans and exempt organizations to
the taxpayer's specific set of facts. Once issued, a letter ruling may be revoked or modified for
any number of reasons, as explained in section 13 of this revenue procedure, unless it is
accompanied by a "closing agreement."

### Closing agreement

.03 A "closing agreement" is a final agreement between the Service and a taxpayer on a
specific issue or liability. It is entered into under the authority in § 7121 and is final unless fraud,
malfeasance, or misrepresentation of a material fact can be shown.

A closing agreement prepared in an office under the responsibility of the Commissioner,
TE/GE, may be based on a ruling that has been signed by the Commissioner, TE/GE, or the
Commissioner, TE/GE's delegate that says that a closing agreement will be entered into on the
basis of the ruling letter.

A closing agreement may be entered into when it is advantageous to have the matter
permanently and conclusively closed, or when a taxpayer can show that there are good reasons
for an agreement and that making the agreement will not prejudice the interests of the
Government. In appropriate cases, taxpayers may be asked to enter into a closing agreement as a
condition to the issuance of a letter ruling.

If, in a single case, a closing agreement is requested for each person in a class of taxpayers,
separate agreements are entered into only if the class consists of 25 or fewer taxpayers. However,
if the issue and holding are identical for the class and there are more than 25 taxpayers in the
class, a "mass closing agreement" will be entered into with the taxpayer who is authorized by the
others to represent the class.

In appropriate cases, a closing agreement may be made with sponsors of master and prototype
plans.

A closing agreement may also be entered into with respect to retirement plan failures corrected
under the Audit Closing Agreement Program of the Employee Plans Compliance Resolution
System (EPCRS), as set forth in Rev. Proc. 2013-12, 2013-4 I.R.B. 313, as updated.

Determination letter

.04 A "determination letter" is a written statement issued to a taxpayer by the Service's EO Determinations or EP Determinations office that applies the principles and precedents previously announced to a specific set of facts. It is issued only when a determination can be made based on clearly established rules in the statute, a tax treaty, or the regulations, or based on a conclusion in a revenue ruling, opinion, or court decision published in the Internal Revenue Bulletin that specifically answers the questions presented. The Manager, EP Determinations, issues determination letters involving §§ 401, 403(a), 409, and 4975(e)(7) as provided in Rev. Proc. 2014-6, page 198, this Bulletin.

Opinion letter

.05 An "opinion letter" is a written statement issued by the Service to a sponsor or M&amp;P mass submitter as to the acceptability of the form of an M&amp;P plan under § 401(a) or § 403(a), and, in the case of a master plan, the acceptability of the master trust under § 501(a), or as to the conformance of a prototype trust, custodial account, or individual annuity with the requirements of § 408(a), (b), (k) or (p) or 408A, as applicable. An opinion letter will also be issued as to the acceptability of the form of a prototype plan under § 403(b). See Rev. Proc. 2011-49, 2011-44 I.R.B. 608, and Rev. Proc. 2013-22, 2013-18 I.R.B. 985. See also Rev. Proc. 87-50, 1987-2 C.B. 647; Rev. Proc. 91-44, 1991-2 C.B. 733; Rev. Proc. 92-38, 1992-1 C.B. 859; Rev. Proc. 97-29, 1997-1 C.B. 689; Rev. Proc. 98-59, 1998-2 C.B. 727; Rev. Proc. 2002-10, 2002-1 C.B. 401, Rev. Proc. 2010-48, 2010-50, I.R.B. 828, as modified by Rev. Proc. 2014-8, page 242, this Bulletin.

Information letter

.06 An "information letter" is a statement issued either by the Director, Employee Plans Rulings and Agreements or the Director, Exempt Organizations Rulings and Agreements. It calls attention to a well-established interpretation or principle of tax law (including a tax treaty) without applying it to a specific set of facts. To the extent resources permit, an information letter may be issued if the taxpayer's inquiry indicates a need for general information or if the taxpayer's request does not meet the requirements of this revenue procedure and the Service thinks general information will help the taxpayer. The taxpayer should provide a daytime telephone number with the taxpayer's request for an information letter. Requests for information letters should be sent to the address stated in section 9.04(2) of this revenue procedure. The requirements of section 9.02 of this revenue procedure are not applicable to information letters. An information letter is advisory only and has no binding effect on the Service.

Revenue ruling

.07 A "revenue ruling" is an interpretation by the Service that has been published in the Internal Revenue Bulletin. It is the conclusion of the Service on how the law is applied to a specific set of facts. Revenue rulings are published for the information and guidance of taxpayers, Service personnel, and other interested parties.

Because each revenue ruling represents the conclusion of the Service regarding the application of law to the entire statement of facts involved, taxpayers, Service personnel, and other concerned parties are cautioned against reaching the same conclusion in other cases unless the facts and circumstances are substantially the same. They should consider the effect of subsequent legislation, regulations, court decisions, revenue rulings, notices, and announcements. See Rev. Proc. 89-14, 1989-1 C.B. 814, as amended by Announcement 89-36, 1989-11 I.R.B. 32, which states the objectives of and standards for the publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin.

Oral advice

.08 Oral guidance is advisory only, and the Service is not bound to recognize it. (1) No oral rulings and no written rulings in response to oral requests. The Service does not orally issue letter rulings or determination letters, nor does it issue letter rulings or determination letters in response to oral requests from taxpayers. Service employees ordinarily will discuss with taxpayers or their representatives inquiries about whether the Service will rule on particular issues and about procedural matters regarding the submission of requests for letter rulings or determination letters, or requests for recognition of exempt status for a particular organization.

#### (2) Discussion possible on substantive issues.

At the discretion of the Service and as time permits, Service employees may also discuss
substantive issues with taxpayers or their representatives. Such a discussion will not bind the
Service or the Office of Chief Counsel, and it cannot be relied upon as a basis for obtaining
retroactive relief under the provisions of § 7805(b).

Service employees who are not directly involved in the examination, appeal, or litigation of
particular substantive tax issues will not discuss those issues with taxpayers or their
representatives unless the discussion is coordinated with Service employees who are directly
involved. The taxpayer or the taxpayer's representative ordinarily will be asked whether an oral
request for advice or information relates to a matter pending before another office of the Service
or before a Federal court.

If a tax issue is not under examination, in appeals, or in litigation, the tax issue may be
discussed even though the issue is affected by a nontax issue pending in litigation.

A taxpayer may seek oral technical guidance from a taxpayer service representative in a Field
office or Service Center when preparing a return or report.

The Service does not respond to letters seeking to confirm the substance of oral discussions,
and the absence of a response to such a letter is not a confirmation

(3) Oral guidance is advisory only, and the Service is not bound by it.

Oral guidance is advisory only, and the Service is not bound by it, for example, when
examining the taxpayer's return.

### Nonbank trustee requests

.09 In order to receive approval to act as a nonbank custodian of plans qualified under
§ 401(a) or accounts described in § 403(b)(7), and as a nonbank trustee or nonbank custodian for
individual retirement arrangements (IRAs) established under § 408(a), (b), or (h), or for a
Coverdell educational savings account established under § 530, or an Archer medical savings
account established under § 220, or a Health Savings Account under § 223, a written application
must be filed that demonstrates how the applicant complies with the requirements of
§ 1.408-2(e)(2) through (5) of the Income Tax Regulations.

The Service must have clear and convincing proof in its files that the requirements of the
regulations are met. If there is a requirement that the applicant feels is not applicable, the
application must provide clear and convincing proof that such requirement is not germane to the
manner in which the applicant will administer any trust or custodial account. See § 1.408-2(e)(6).

The completed application should be sent to:
Internal Revenue Service
Commissioner, TE/GE
Attention: SE:T:EP:RA
P.O. Box 27063
McPherson Station
Washington, DC 20038

Section 6.01(10) of Rev. Proc. 2014-8 imposes a user fee for anyone applying for approval to
become a nonbank trustee or custodian.

Compliance Statement

.10 A "compliance statement" is a binding written agreement between the Service and a
taxpayer with respect to certain retirement plan failures identified by a taxpayer in a voluntary
submission under the Voluntary Correction Program of the EPCRS (see Rev. Proc. 2013-12, as
updated). The compliance statement addresses the failures identified in the VCP submission, the
terms of correction, including any revision of administrative procedures, and the time period
within which proposed corrections must be implemented. A compliance statement is conditioned
on (i) there being no misstatement or omission of material facts in connection with the
submission, and (ii) the implementation of the specific corrections and satisfaction of any other
conditions in the compliance statement. See Rev. Proc. 2013-12, as updated.

### Advisory Letter

.11 An "advisory letter" is a written statement issued by the Service to a VS practitioner or VS
mass submitter as to the acceptability of the form of a specimen plan and any related trust or
custodial account under § 401(a) or § 403(a), or the form of a specimen plan under § 403(b). See
Rev. Proc. 2011-49, 2011-44 I.R.B. 608, and Rev. Proc. 2013-22, 2013-18 I.R.B. 985.

Taxpayers may request letter rulings, information letters and closing agreements on issues
within the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division
under this revenue procedure. The Service issues letter rulings to answer written inquiries of
individuals and organizations about their status for tax purposes and the tax effects of their acts
or transactions when appropriate in the interest of sound tax administration.

Taxpayers also may request determination letters that relate to Code sections under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. See Rev. Proc.
2014-6, this Bulletin.

.01 The procedures for obtaining determination letters involving §§ 401, 403(a), 409, and
4975(e)(7), and the status for exemption of any related trusts or custodial accounts under
§ 501(a) are contained in Rev. Proc. 2014-6, this Bulletin.

.02 The procedures for obtaining opinion letters for master and prototype plans and any related
trusts or custodial accounts under §§ 401(a), 403(a) and 501(a) and advisory letters for volume
submitter plans are contained in Rev. Proc. 2011-49. The procedures for obtaining opinion letters
for prototype trusts, custodial accounts or annuities under § 408(a), (b), (k) or (p) or 408A, are
contained in Rev. Proc. 87-50; Rev. Proc. 91-44; Rev. Proc. 92-38; Rev. Proc. 97-29; Rev.
Proc. 98-59; Rev. Proc. 2002-10, and Rev. Proc. 2010-48, as modified by Rev. Proc. 2014-8.
The procedures for obtaining opinion and advisory letters for prototype plans and volume
submitter plans under § 403(b) are contained in Rev. Proc. 2013-22.

Closing agreement program
for defined contribution
plans that purchased GICs
or GACs
Employee Plans Compliance
Resolution System

.03 Rev. Proc. 95-52, 1995-1 C.B. 439, restates and extends for an indefinite period the
closing agreement program for defined contribution plans that purchased guaranteed investment
contracts (GICs) or group annuity contracts (GACs) from troubled life insurance companies.

.04 The procedures for obtaining compliance statements, etc., for certain failures of plans
qualified under § 401(a), § 403(b) plans, SEPs and § 457 plans under the Employee Plans
Compliance Resolution System (EPCRS) are contained in Rev. Proc. 2013-12, as updated.

Chief Counsel

.05 The procedures for obtaining rulings, closing agreements, and information letters on issues
within the jurisdiction of the Chief Counsel are contained in Rev. Proc. 2014-1, page 1, this
Bulletin, including tax issues involving interpreting or applying the federal tax laws and income
tax treaties relating to international transactions.

Alcohol, tobacco, and
firearms taxes

.06 The procedures for obtaining letter rulings, etc., that apply to federal alcohol, tobacco, and
firearms taxes under subtitle E of the Internal Revenue Code are under the jurisdiction of the
Alcohol and Tobacco Tax and Trade Bureau within the Treasury Department.

SECTION 6.UNDER
WHAT CIRCUMSTANCES
DOES TE/GE ISSUE
LETTER RULINGS?

In exempt organizations
matters

.01 In exempt organizations matters, the Exempt Organizations Technical Office issues letter
rulings on proposed transactions and on completed transactions if the request is submitted before

Sec. 6.01
January 2, 2014

### SECTION 4. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER THIS PROCEDURE?

SECTION 5. ON WHAT
ISSUES MUST WRITTEN
GUIDANCE BE
REQUESTED UNDER
DIFFERENT
PROCEDURES?

Determination letters

Master and prototype plans,
volume submitter plans, and
prototype plans

the return is filed for the year in which the transaction that is the subject of the request was
completed. Exempt Organizations Technical issues letter rulings involving:

(1) Organizations exempt from tax under § 501, including private foundations;

(2) Organizations described in § 170(b)(1)(A) (except clause (v);

(3) Political organizations described in § 527;

(4) Qualified tuition programs described in § 529 other than state run programs;

(5) Trusts described in § 4947(a);

(6) Other matters including issues under §§ 501 through 514, 4911, 4912, 4940 through 4948,
4955, 4958, 4976, 6033, 6104, 6113, and 6115; and

(7) Harassment campaign rulings described in § 6104(d).

#### In employee plans matters

.02 In employee plans matters, the Employee Plans Technical office issues letter rulings on
proposed transactions and on completed transactions either before or after the return is filed.
Employee Plans Technical issues letter rulings involving:

(1) §§ 72, 101(d), 219, 381(c)(11), 402, 403(b) (except with respect to whether the form of a
plan satisfies the requirements of § 403(b) as noted in Ann. 2009-89), 404, 408, 408A, 412,
414(e), 419, 419A, 511 through 514, 4971, 4972, 4973, 4974, 4978, 4979, and 4980;

(2) Waiver of the minimum funding standard (See Rev. Proc. 2004-15, 2004-1 C.B. 490), and
changes in funding methods and actuarial assumptions under §§ 412, 430 or 431;

(3) Waiver of the liquidity shortfall (as that term is defined in § 430(j)(4)) excise tax under
§ 4971(f)(4);

(4) Waiver under § 4980F(c)(4) of all or part of the excise tax imposed for failure to satisfy
the notice requirements described in § 4980F(e);

(5) Whether a plan amendment is reasonable and provides for only de minimis increases in
plan liabilities in accordance with §§ 401(a)(33) and 412(c)(7)(B)(i) of the Code (See Rev. Proc.
79-62, 1979-2 C.B. 576);

(6) A change in the plan year of an employee retirement plan and the trust year of a tax-
exempt employees' trust (See Rev. Proc. 87-27, 1987-1 C.B. 769);

(7) The tax consequences of prohibited transactions under §§ 503 and 4975;

(8) Whether individual retirement accounts established by employers or associations of
employees meet the requirements of § 408(c). (See Rev. Proc. 87-50; Rev. Proc. 92-38; Rev.
Proc. 98-59; Rev. Proc. 2002-10, and Rev. Proc. 2010-48, as modified by Rev. Proc. 2014-8);

(9) With respect to employee stock ownership plans, §§ 409(l), 409(n), and 4975(d)(3). Other
subsections of §§ 409 and 4975(e)(7) involve qualification issues within the jurisdiction of EP
Determinations; and

(10) Where the Commissioner, Tax Exempt and Government Entities Division has authority to
grant extensions of certain periods of time within which the taxpayer must perform certain
transactions (for example, the 90-day period for reinvesting in employer securities under
§ 1.46-8(e)(10) of the regulations), the taxpayer's request for an extension of such time period
must be postmarked (or received, if hand delivered to the Employee Plans Technical office) no
later than the expiration of the original time period. Thus, for example, a request for an extension
of the 90-day period under § 1.46-8(e)(10) must be made before the expiration of this period.
However, see section 6.04 below with respect to elections under § 301.9100-1 of the Procedure
and Administration Regulations.

#### In qualifications matters

.03 The Employee Plans Technical office ordinarily will not issue letter rulings on matters

involving a plan's qualified status under §§ 401 through 420 and § 4975(e)(7). These matters are
generally handled by the Employee Plans Determinations program as provided in Rev. Proc.
2014-6, this Bulletin, Rev. Proc. 93-10 and Rev. Proc. 93-12. Although the Employee Plans
Technical office will not ordinarily issue rulings on matters involving plan qualification, a ruling
may be issued where, (1) the taxpayer has demonstrated to the Service's satisfaction that the
qualification issue involved is unique and requires immediate guidance, (2) as a practical matter,
it is not likely that such issue will be addressed through the determination letter process, and (3)
the Service determines that it is in the interest of good tax administration to provide guidance to
the taxpayer with respect to such qualification issue.

.04 Employee Plans Technical or Exempt Organizations Technical will consider a request for
an extension of time for making an election or other application for relief under § 301.9100-1 of
the Procedure and Administration Regulations even if submitted after the return covering the
issue presented in the § 301.9100-1 request has been filed and even if submitted after an
examination of the return has begun or after the issues in the return are being considered by an
appeals office or a federal court. In such a case, EP or EO Technical will notify the Director, EP
or EO Examinations.

Request for extension of
time for making an election
or for other relief under
§ 301.9100-1 of the
Procedure and
Administration Regulations

Except for those requests pertaining to applications for recognition of exemption, § 301.9100-1
requests, even those submitted after the examination of the taxpayer's return has begun, are letter
ruling requests and therefore should be submitted pursuant to this revenue procedure, and require
payment of the applicable user fee, referenced in section 9.02(14) of this revenue procedure. In
addition, the taxpayer must include the information required by § 301.9100-3(e).

However, an election made pursuant to § 301.9100-2 is not a letter ruling and does not require
payment of any user fee. See § 301.9100-2(d). Such an election pertains to an automatic extension of
time under § 301.9100-1.

Issuance of a letter ruling
before the issuance of a
regulation or other published
guidance

.05 Unless the issue is covered by section 8 of this procedure, a letter ruling may be issued before
the issuance of a temporary or final regulation or other published guidance that interprets the
provisions of any act under the following conditions:

(1) Answer is clear or is reasonably certain. If the letter ruling request presents an issue for which
the answer seems clear by applying the statute to the facts or for which the answer seems reasonably
certain but not entirely free from doubt, a letter ruling will be issued.

(2) Answer is not reasonably certain. The Service will consider all letter ruling requests and use
its best efforts to issue a letter ruling even if the answer does not seem reasonably certain where the
issuance of a letter ruling is in the best interest of tax administration.

(3) Issue cannot be readily resolved before a regulation or any other published guidance is
issued. A letter ruling will not be issued if the letter ruling request presents an issue that cannot be
readily resolved before a regulation or any other published guidance is issued.

##### Issues in prior return

.06 The Service ordinarily does not issue rulings if, at the time the ruling is requested, the identical
issue is involved in the taxpayer's return for an earlier period, and that issue:

(1) is being examined by the Director, EP or EO Examinations;

(2) is being considered by an appeals office;

(3) is pending in litigation in a case involving the taxpayer or related taxpayer; or

(4) has been examined by the Director, EP or EO Examinations or considered by an appeals office,
and the statutory period of limitation has not expired for either assessment or filing a claim for a
refund or a closing agreement covering the issue of liability has not been entered into by the Director,
EP or EO Rulings and Agreements or by an appeals office.

If a return dealing with an issue for a particular year is filed while a request for a ruling on that
issue is pending, EP or EO Technical will issue the ruling unless it is notified by the taxpayer that an
examination of that issue or the identical issue on an earlier year's return has been started by the

Director, EP or EO Examinations. See section 9.05. However, even if an examination has begun, EP or EO Technical ordinarily will issue the letter ruling if the Director, EP or EO Examinations agrees, by memorandum, to permit the ruling to be issued.

Generally not to business associations or groups

.07 EP or EO Technical does not issue letter rulings to business, trade, or industrial associations or to similar groups concerning the application of the tax laws to members of the group. But groups and associations may submit suggestions of generic issues that would be appropriately addressed in revenue rulings. See Rev. Proc. 89-14, 1989-1 C.B. 814, as amended by Announcement 89-36, 1989-11 I.R.B. 32, which states objectives of, and standards for, the publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin. EP or EO Technical, however, may issue letter rulings to groups or associations on their own tax status or liability if the request meets the requirements of this revenue procedure.

Generally not to foreign governments

.08 EP or EO Technical does not issue letter rulings to foreign governments or their political subdivisions about the U.S. tax effects of their laws. However, EP or EO Technical may issue letter rulings to foreign governments or their political subdivisions on their own tax status or liability under U.S. law if the request meets the requirements of this revenue procedure.

Generally not on federal tax consequences of proposed legislation

.09 EP or EO Technical does not issue letter rulings on a matter involving the federal tax consequences of any proposed federal, state, local, municipal, or foreign legislation. EP or EO Technical, however, may provide general information in response to an inquiry.

Not on certain matters under § 53.4958-6 of the Foundation and Similar Excise Taxes Regulations

.10 EO Technical does not issue letter rulings as to whether a compensation or property transaction satisfies the rebuttable presumption that the transaction is not an excess benefit transaction as described in § 53.4958-6 of the Foundation and Similar Excise Taxes Regulations.

Not on stock options

.11 EP Technical does not issue letter rulings on the income tax (including unrelated business income tax) or excise tax consequences of the contribution of stock options to, or their subsequent exercise from, plans described in Part I of Subchapter D of Subtitle A of the Code.

Generally not on EO joint venture with a for-profit organization

.12 With the exception of when the issue is present in an initial application for recognition of exemption, EO Technical does not issue letter rulings as to whether a joint venture with a for-profit organization affects an organization's exempt status or results in unrelated business income.

Not on qualification of state run programs under § 529

.13 EO Technical will not issue letter rulings as to whether a state run tuition program qualifies under § 529.

Not on UBIT issues involving certain investments of a charitable lead trust

.14 EO Technical will not issue letter rulings pertaining to unrelated business income tax issues arising when charitable lead trust assets are invested with charitable organizations.

Not on issues under § 4966 or § 4967

.15 EO Technical will not issue letter rulings under § 4966 or § 4967, as added by section 1231 of the Pension Protection Act of 2006, before the issuance of temporary or final regulations or other published guidance that interprets these provisions.

Not on issues under § 507, § 4941 or § 4945

.16 EO Technical will not issue letter rulings under § 507, § 4941 or § 4945 pertaining to the tax consequences of the termination of a charitable remainder trust (as defined in § 664) before the end of the trust term as defined in the trust's governing instrument in a transaction in which the trust beneficiaries receive their actuarial shares of the value of the trust assets.

Generally not to partnerships or limited liability companies

.17 EO Technical will not issue letter rulings to a partnership, limited liability company or other similar entity unless such entity may be liable for tax imposed by Chapter 42 of the Internal Revenue Code.

EO Technical may, however, issue letter rulings to a partner or member of a partnership or limited liability company if the request meets the requirements of this revenue procedure and the partner or member is under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division.

Sec. 6.17

Bulletin No. 2014-1

135 January 2, 2014

Not on Self-Dealing Issues
Involving the Issuance of a
Promissory Note by a
Disqualified Person During
the Administration of an
Estate or Trust

SECTION 7. UNDER
WHAT CIRCUMSTANCES
DOES EP OR EO
DETERMINATIONS
ISSUE DETERMINATION
LETTERS?

Circumstances under which
determination letters are
issued

In general

.18 EO Technical will not issue letter rulings pertaining to the exception to § 4941 for
transactions during the administration of an estate or trust set forth in Treas. Reg.
§ 53.4941(d)-1(b)(3) in cases in which a disqualified person issues a promissory note in
exchange for property of an estate or trust.

.01 Employee Plans or Exempt Organizations Determinations issues determination letters only
if the question presented is specifically answered by a statute, tax treaty, or regulation, or by a
conclusion stated in a revenue ruling, opinion, or court decision published in the Internal
Revenue Bulletin.

.02 In employee plans matters, the EP Determinations office issues determination letters in
response to taxpayers' written requests on completed transactions. However, see section 13.08 of
this revenue procedure. A determination letter usually is not issued for a question concerning a
return to be filed by the taxpayer if the same question is involved in a return under examination.

In situations involving continuing transactions, such as whether an ongoing activity is an
unrelated trade or business, EP Technical would issue a ruling covering future tax periods and
periods for which a return had not yet been filed.

EP Determinations does not issue determination letters on the tax consequences of proposed
transactions, except as provided in sections 7.03 and 7.04 below.

EP Determinations does not issue determination letters on plans under § 403(b).

Under no circumstances will EP Determinations issue a determination letter unless it is clearly
shown that the request concerns a return that has been filed or is required to be filed.

In employee plans matters

.03 In employee plans matters, the Employee Plans Determinations office issues determination
letters on the qualified status of employee plans under §§ 401, 403(a), 409 and 4975(e)(7), and
the exempt status of any related trust under § 501. See Rev. Proc. 2014-6, this Bulletin.

.04 In exempt organizations matters, the Exempt Organizations Determinations office issues
determination letters involving:

In exempt organizations
matters

(1) Initial qualification for exempt status of organizations described in §§ 501 and 521 to the
extent provided in Rev. Proc. 2014-9, the next Bulletin (including reinstatement of organizations
that have been automatically revoked pursuant to § 6033(j) and subordinate organizations
included in a group exemption letter that have been revoked pursuant to that provision);

(2) Updated exempt status letter to reflect changes to an organization's name or address, or to
replace a lost exempt status letter, but not to approve or disapprove any completed transaction or
the effect of changes in activities on exempt status, except in the situations specifically listed in
paragraphs (3) through (14) below;

(3) Classification of private foundation status as provided in 2014-10, the next Bulletin;

(4) Reclassification of private foundation status, including operating foundation status described
in § 4942(j)(3) and exempt operating foundation status described in § 4940(d), as provided in
Rev. Proc. 2014-10, the next Bulletin;

(5) Recognition of unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and
509(a)(2);

(6) Requests for relief under § 301.9100-1 of the Procedure and Administration Regulations in
connection with applications for recognition of exemption;

(7) Terminations of private foundation status under § 507(b)(1)(B);

(8) Request for a determination that a public charity described in § 509(a)(3) is described in
§ 509(a)(3)(i), (ii), or (iii), including whether or not a Type III supporting organization is
functionally integrated. See Rev. Proc. 2014-10, the next Bulletin;

(9) Advance approval of certain set-asides described in § 4942(g)(2);

(10) Advance approval under § 4945 of organizations' grant making procedures;

(11) Advance approval of voter registration activities described in § 4945(f);

(12) Whether an organization is exempt from filing annual information returns under § 6033 as
provided in Treas. Reg. § 1.6033-2(g)(1) and Rev. Procs. 95-48, 1995-2 C.B. 418, and 96-10,
1996-1 C.B. 577 (an organization that claims exemption from filing but is not on record with the
Service as having established such exemption, by way of a determination letter under this section
7.04(12) or otherwise, may have its tax exempt status or determination letter revoked pursuant to
§ 6033(j) if it fails to file annual information returns);

(13) Determination of foundation status under § 509(a)(3) of non- exempt charitable trusts
described in § 4947(a)(1), as provided in Rev. Proc. 2014-10, next Bulletin; and

(14) Government entity voluntary termination of § 501(c)(3) recognition (must include
documentation of tax-exempt status other than under § 501(a)).

#### Circumstances under which determination letters are not issued

.05 EP or EO Determinations will not issue a determination letter in response to any request
if-

(1) it appears that the taxpayer has directed a similar inquiry to EP or EO Technical;

(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case in
litigation or before an appeals office;

(3) the determination letter is requested by an industry, trade association, or similar group on
behalf of individual taxpayers within the group (other than subordinate organizations covered by
a group exemption letter); or

(4) the request involves an industry-wide problem.

#### Requests involving returns already filed

.06 A request received by the Service on a question concerning a return that is under
examination will be, in general, considered in connection with the examination of the return. If a
response is made to the request before the return is examined, it will be considered a tentative
finding in any later examination of that return.

Attach a copy of
determination letter to
taxpayer's return

.07 A taxpayer who, before filing a return, receives a determination letter about any transaction
that has been consummated and that is relevant to the return being filed should attach a copy of
the determination letter to the return when it is filed.

Review of determination
letters

.08 Determination letters issued under sections 7.02 through 7.04 of this revenue procedure are
not generally reviewed by EP or EO Technical before they are issued. If a taxpayer believes that
a determination letter of this type is in error, the taxpayer may ask EP or EO Determinations to
reconsider the matter or to request technical advice from EP or EO Technical as explained in
Rev. Proc. 2014-5, page 169, this Bulletin.

(1) In employee plans matters, the procedures for review of determination letters relating to the
qualification of employee plans involving §§ 401 and 403(a) are provided in Rev. Proc. 2014-6.

(2) In exempt organizations matters, the procedures for the review of determination letters
relating to the exemption from federal income tax of certain organizations under §§ 501 and 521
are provided in Rev. Proc. 2014-9.

Sec. 7.08
January 2, 2014

SECTION 8. UNDER
WHAT CIRCUMSTANCES
DOES THE SERVICE
HAVE DISCRETION TO
ISSUE LETTER RULINGS
AND DETERMINATION
LETTERS?

Ordinarily not in certain areas because of factual nature of the problem

.01 The Service ordinarily will not issue a letter ruling or determination letter in certain areas because of the factual nature of the problem involved or because of other reasons. The Service may decline to issue a letter ruling or a determination letter when appropriate in the interest of sound tax administration or on other grounds whenever warranted by the facts or circumstances of a particular case.

No "comfort" letter rulings

.02 No letter ruling will be issued with respect to an issue that is clearly and adequately addressed by statute, regulations, decision of a court of appropriate jurisdiction, revenue ruling, revenue procedure, notice or other authority published in the Internal Revenue Bulletin. Instead of issuing a letter ruling, the Service may, when it is considered appropriate and in the best interests of the Service, issue an information letter calling attention to well-established principles of tax law.

Not on alternative plans or hypothetical situations

.03 A letter ruling or a determination letter will not be issued on alternative plans of proposed transactions or on hypothetical situations.

Ordinarily not on part of an integrated transaction

.04 The Service ordinarily will not issue a letter ruling on only part of an integrated transaction. If, however, a part of a transaction falls under a no-rule area, a letter ruling on other parts of the transaction may be issued.

Before preparing the letter ruling request, a taxpayer should call the office having jurisdiction for the matters on which the taxpayer is seeking a letter ruling to discuss whether the Service will issue a letter ruling on part of the transaction.

Not on partial terminations of employee plans

.05 The Service will not issue a letter ruling on the partial termination of an employee plan. Determination letters involving the partial termination of an employee plan may be issued.

Law requires ruling letter

.06 The Service will issue rulings on prospective or future transactions if the law or regulations require a determination of the effect of a proposed transaction for tax purposes.

Issues under consideration by PBGC or DOL

.07 A letter ruling or determination letter relating to an issue that is being considered by the Pension Benefit Guaranty Corporation (PBGC) or the Department of Labor (DOL), and involves the same taxpayer, shall be issued at the discretion of the Service.

Cafeteria plans

.08 The Service does not issue letter rulings or determination letters on whether a cafeteria plan satisfies the requirements of § 125. See also Rev. Proc. 2014-3, also in this Bulletin, for areas under the jurisdiction of the Division Counsel/ Associate Chief Counsel (Tax Exempt and Government Entities) involving cafeteria plans in which advance rulings or determination letters will not be issued.

Determination letters

.09 See section 3.02 of Rev. Proc. 2014-6 for employee plans matters on which determination letters will not be issued.

Domicile in a foreign jurisdiction

.10 (1) The Service is ordinarily unwilling to rule in situations where a taxpayer or a related party is domiciled or organized in a foreign jurisdiction with which the United States does not have an effective mechanism for obtaining tax information with respect to civil tax examinations and criminal investigations, which would preclude the Service from obtaining information located in such jurisdiction that is relevant to the analysis or examination of the tax issues involved in the ruling request.

(2) The provisions of subsection 8.10(1) above shall not apply if the taxpayer or affected
related party (a) consents to the disclosure of all relevant information requested by the Service in
processing the ruling request or in the course of an examination to verify the accuracy of the
representations made and to otherwise analyze or examine the tax issues involved in the ruling
request, and (b) waives all claims to protection of bank and commercial secrecy laws in the
foreign jurisdiction with respect to the information requested by the Service.

In the event the taxpayer's or related party's consent to disclose relevant information or to
waive protection of bank or commercial secrecy is determined by the Service to be ineffective or
of no force and effect, then the Service may retroactively rescind any ruling rendered in reliance
on such consent.

#### Employee Stock Ownership Plans

.11

(1) The Service does not issue a letter ruling on whether or not the renewal, extension or
refinancing of an exempt loan satisfies the requirements of § 4975(d)(3) of the Internal Revenue
Code.

(2) The Service does not issue a letter ruling on whether the pre-payment of ESOP loans
satisfies the requirements of § 4975(d)(3) other than with respect to plan termination.

#### Governmental Plans

.12 The Service does not issue a letter ruling on whether or not a plan is a governmental plan
under § 414(d).

SECTION 9. WHAT ARE
THE GENERAL
INSTRUCTIONS FOR
REQUESTING LETTER
RULINGS AND
DETERMINATION
LETTERS?

In general

.01 This section explains the general instructions for requesting letter rulings and determination
letters on all matters. Requests for letter rulings and determination letters require the payment of
the applicable user fee discussed in section 9.02(14) of this revenue procedure. In addition to
payment of the applicable user fee, exempt organizations determinations requests described in
section 7.04(3), (4), (5), (7), (8), (9), (10), (11), (12), and (13) of this revenue procedure must be
accompanied by Form 8940.

Specific and additional instructions also apply to requests for letter rulings and determination
letters on certain matters. Those matters are listed in section 10 of this revenue procedure
followed by a reference (usually to another revenue procedure) where more information can be
obtained.

All requests must be submitted in English. All documents submitted in support of such
requests must be in English, or accompanied by an English translation. For EO submissions only,
see Forms 1023 and 1024 Instructions.

Certain information
required in all requests
Facts

.02

(1) Complete statement of facts and other information. Each request for a letter ruling or a
determination letter must contain a complete statement of all facts relating to the transaction.
These facts include-

(a) names, addresses, telephone numbers, and taxpayer identification numbers of all interested
parties. (The term "all interested parties" does not mean all shareholders of a widely held
corporation requesting a letter ruling relating to a reorganization, or all employees where a large
number may be involved.);

(b) a complete statement of the business reasons for the transaction; and

The Service will usually not rule on only one step of a larger integrated transaction. See section 8.04 of this revenue procedure. However, if such a letter ruling is requested, the facts, circumstances, true copies of relevant documents, etc., relating to the entire transaction must be submitted.

Documents

(2) Copies of all contracts, wills, deeds, agreements, instruments, plan documents, and other documents. All documents that are pertinent to the transaction (including contracts, wills, deeds, agreements, instruments, plan documents, trust documents, and proposed disclaimers) must be submitted with the request.

Original documents should not be submitted because they become part of the Service's file and will not be returned to the taxpayer. Instead, true copies of all such documents should be submitted with the request. Each document, other than the request, should be labeled alphabetically and attached to the request in alphabetical order.

Analysis of material facts

(3) Analysis of material facts. All material facts in documents must be included, rather than merely incorporated by reference, in the taxpayer's initial request or in supplemental letters. These facts must be accompanied by an analysis of their bearing on the issue or issues, specifying the provisions that apply.

Same issue in an earlier return

(4) Statement regarding whether same issue is in an earlier return. The request must state whether, to the best of the knowledge of both the taxpayer and the taxpayer's representatives, the same issue is in an earlier return of the taxpayer (or in a return for any year 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). If the statement is affirmative, it must specify whether the issue- (a) is being examined by the Service; (b) has been examined and if so, whether or not the statutory period of limitations has expired for either assessing tax or filing a claim for refund or credit of tax; (c) has been examined and if so, whether or not a closing agreement covering the issue or liability has been entered into by the Service;

(d) is being considered by an appeals office in connection with a return from an earlier period; (e) has been considered by an appeals office in connection with a return from an earlier period and if so, whether or not the statutory period of limitations has expired for either assessing tax or filing a claim for refund or credit of tax;

(f) has been considered by an appeals office in connection with a return from an earlier period and whether or not a closing agreement covering the issue or liability has been entered into by an appeals office; (g) is pending in litigation in a case involving the taxpayer or a related taxpayer; or (h) in employee plans matters, is being considered by the Pension Benefit Guaranty Corporation or the Department of Labor.

Same or similar issue previously submitted or currently pending

(5) Statement regarding whether same or similar issue was previously ruled on or requested, or is currently pending. The request must also state whether, to the best of the knowledge of both the taxpayer and the taxpayer's representatives- (a) the Service previously ruled on the same or similar issue for the taxpayer (or a related taxpayer within the meaning of § 267, or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504) or a predecessor;

(b) the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted the same or similar issue to the Service but withdrew the request before a letter ruling or determination letter was issued; (c) the taxpayer, a related taxpayer, or a predecessor previously submitted a request involving the same or a similar issue that is currently pending with the Service; or (d) at the same time as this request, the taxpayer or a related taxpayer is presently submitting another request involving the same or a similar issue to the Service. If the statement is affirmative for (a), (b), (c), or (d) of this section 9.02(5), the statement must give the date the request was submitted, the date the request was withdrawn or ruled on, if applicable, and other details of the Service's consideration of the issue.

Statement of authorities supporting taxpayer's views

(6) Statement of supporting authorities. If the taxpayer advocates a particular conclusion, an explanation of the grounds for that conclusion and the relevant authorities to support it must also be included. Even if not advocating a particular tax treatment of a proposed transaction, the taxpayer must still furnish views on the tax results of the proposed transaction and a statement of relevant authorities to support those views. In all events, the request must include a statement of whether the law in connection with the request is uncertain and whether the issue is adequately addressed by relevant authorities.

Statement of authorities contrary to taxpayer's views

(7) Statement of contrary authorities. The taxpayer is also encouraged to inform the Service about, and discuss the implications of, any authority believed to be contrary to the position advanced, such as legislation (or pending legislation), tax treaties, court decisions, regulations, revenue rulings, revenue procedures, notices or announcements. If the taxpayer determines that there are no contrary authorities, a statement in the request to this effect would be helpful. If the taxpayer does not furnish either contrary authorities or a statement that none exists, the Service in complex cases or those presenting difficult or novel issues may request submission of contrary authorities or a statement that none exists. Failure to comply with this request may result in the Service's refusal to issue a letter ruling or determination letter.

Identifying and discussing contrary authorities will generally enable Service personnel to understand the issue and relevant authorities more quickly. When Service personnel receive the request, they will have before them the taxpayer's thinking on the effect and applicability of contrary authorities. This information should make research easier and lead to earlier action by the Service. If the taxpayer does not disclose and distinguish significant contrary authorities, the Service may need to request additional information, which will delay action on the request.

Statement identifying pending legislation

(8) Statement identifying pending legislation. At the time of filing the request, the taxpayer must identify any pending legislation that may affect the proposed transaction. In addition, if applicable legislation is introduced after the request is filed but before a letter ruling or determination letter is issued, the taxpayer must notify the Service.

Deletions statement required by § 6110

(9) Statement identifying information to be deleted from copy of letter ruling or determination letter for public inspection. The text of certain letter rulings and determination letters is open to public inspection under § 6110. The Service makes deletions from the text before it is made available for inspection. To help the Service make the deletions required by § 6110(c), a request for a letter ruling or determination letter must be accompanied by a statement indicating the deletions desired ("deletions statement"). If the deletions statement is not submitted with the request, a Service representative will tell the taxpayer that the request will be closed if the Service does not receive the deletions statement within 30 calendar days. See section 11.03 of this revenue procedure. (a) Format of deletions statement. A taxpayer who wants only names, addresses, and identifying numbers to be deleted should state this in the deletions statement. If the taxpayer wants more information deleted, the deletions statement must be accompanied by a copy of the request and supporting documents on which the taxpayer should bracket the material to be deleted. The deletions statement must indicate the statutory basis under § 6110(c) for each proposed deletion.

If the taxpayer decides to ask for additional deletions before the letter ruling or
determination letter is issued, additional deletions statements may be submitted.

(b) Location of deletions statement. The deletions statement must not appear in the
request, but instead must be made in a separate document and placed on top of the request
for a letter ruling or determination letter.

(c) Signature. The deletions statement must be signed and dated by the taxpayer or the
taxpayer's authorized representative. A stamped or faxed signature is not permitted.

(d) Additional information. The taxpayer should follow the same procedures above to
propose deletions from any additional information submitted after the initial request. An
additional deletions statement, however, is not required with each submission of additional
information if the taxpayer's initial deletions statement requests that only names, addresses,
and identifying numbers are to be deleted and the taxpayer wants only the same information
deleted from the additional information.

(e) Taxpayer may protest deletions not made. After receiving from the Service the
notice under § 6110(f)(1) of intention to disclose the letter ruling or determination letter
(including a copy of the version proposed to be open to public inspection and notation of
third-party communications under § 6110(d)), the taxpayer may protest the disclosure of
certain information in the letter ruling or determination letter. The taxpayer must send a
written statement within 20 calendar days to the Service office indicated on the notice of
intention to disclose. The statement must identify those deletions that the Service has not
made and that the taxpayer believes should have been made. The taxpayer must also submit
a copy of the version of the letter ruling or determination letter and bracket the deletions
proposed that have not been made by the Service. Generally, the Service will not consider
deleting any material that the taxpayer did not propose to be deleted before the letter ruling
or determination letter was issued.

Within 20 calendar days after the Service receives the response to the notice under
§ 6110(f)(1), the Service will mail to the taxpayer its final administrative conclusion
regarding the deletions to be made. The taxpayer does not have the right to a conference to
resolve any disagreements concerning material to be deleted from the text of the letter ruling
or determination letter. However, these matters may be taken up at any conference that is
otherwise scheduled regarding the request.

(f) Taxpayer may request delay of public inspection. After receiving the notice under
§ 6110(f)(1) of intention to disclose, but within 60 calendar days after the date of notice, the
taxpayer may send a request for delay of public inspection under either § 6110(g)(3) or (4).
The request for delay must be sent to the Service office indicated on the notice of intention
to disclose. A request for delay under § 6110(g)(3) must contain the date on which it is
expected that the underlying transaction will be completed. The request for delay under
§ 6110(g)(4) must contain a statement from which the Commissioner of Internal Revenue
may determine that there are good reasons for the delay.

Section 6110(l)(1) states that § 6110 disclosure provisions do not apply to any matter to
which § 6104 applies. Therefore, letter rulings, determination letters, technical advice
memoranda, and related background file documents dealing with the following matters
(covered by § 6104) are not subject to § 6110 disclosure provisions-

(i) An approved application for exemption under § 501(a) as an organization described in
§ 501(c) or (d), or notice of status as a political organization under § 527, together with any
papers submitted in support of such application or notice;

(ii) An application for exemption under § 501(a) with respect to the qualification of a
pension, profit-sharing or stock bonus plan, or an individual retirement account described in
§ 408 or § 408A, whether the plan or account has more than 25 or less than 26 participants,
or any application for exemption under § 501(a) by an organization forming part of such a
plan or an account;

(iii) Any document issued by the Internal Revenue Service in which the qualification or exempt status of a plan or account is granted, denied, or revoked or the portion of any document in which technical advice with respect thereto is given; (iv) Any application filed and any document issued by the Internal Revenue Service with respect to the qualification or status of EP master and prototype plans; and (v) The portion of any document issued by the Internal Revenue Service with respect to the qualification or exempt status of a plan or account of a proposed transaction by such plan or account.

Signature on request

(10) Signature by taxpayer or authorized representative. The request for a letter ruling or determination letter must be signed and dated by the taxpayer or the taxpayer's authorized representative. Neither a stamped signature nor a faxed signature is permitted. Special rules apply in the case of a request for a determination letter made by filing Form 1023; please see the instructions to that Form for who may sign the application on behalf of an organization.

Authorized representatives

(11) Authorized representatives. To sign the request or to appear before the Service in connection with the request, the representative must be:

Attorney

(a) An attorney who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia and who is not currently under suspension or disbarment from practice before the Service. He or she must file a written declaration with the Service showing current qualification as an attorney and current authorization to represent the taxpayer;

Certified public accountant

(b) A certified public accountant who is qualified to practice in any state, possession, territory, commonwealth, or the District of Columbia and who is not currently under suspension or disbarment from practice before the Service. He or she must file a written declaration with the Service showing current qualification as a certified public accountant and current authorization to represent the taxpayer;

Enrolled agent

(c) An enrolled agent is a person, other than an attorney or certified public accountant, that is currently enrolled to practice before the Service and is not currently under suspension or disbarment from practice before the Service, including a person enrolled to practice only for employee plans matters. He or she must file a written declaration with the Service showing current enrollment and authorization to represent the taxpayer. Either the enrollment number or the expiration date of the enrollment card must be included in the declaration. For the rules on who may practice before the Service, see Treasury Department Circular No. 230;

Enrolled actuary

(d) An enrolled actuary is a person enrolled as an actuary by the Joint Board for the Enrollment of Actuaries pursuant to 29 U.S.C. 1242 and qualified to practice in any state, possession, territory, commonwealth, or the District of Columbia and who is not currently under suspension or disbarment from practice before the Service. He or she must file a written declaration with the Service showing current qualification as an enrolled actuary and current authorization to represent the taxpayer. Practice as an enrolled actuary is limited to representation with respect to issues involving the following statutory provisions: §§ 401, 403(a), 404, 412, 413, 414, 419, 419A, 420, 430, 431, 432, 436, 4971, 4972, 6057, 6058, 6059, 6652(d), 6652(e), 6692, 7805(b), former § 405 and 29 U.S.C. 1083;

Enrolled Retirement Plan Agent

(e) An enrolled retirement plan agent (ERPA) is an individual who has earned the privilege to practice before the Service. The ERPA program is established under Circular 230 of the U.S. Department of the Treasury and is administered by the Office of Professional Responsibility (the "OPR"). The Director of the OPR may grant enrollment as an ERPA to an applicant who demonstrates special competence in qualified retirement plan matters (by either passing a written examination or by virtue of past service and technical experience with the Service) and who has not engaged in any conduct that would justify the censure, suspension or disbarment of the practitioner. An ERPA must apply for enrollment with the Service, have been issued an enrollment card and satisfy renewal and continuing education requirements.

Bulletin No. 2014-1

Sec. 9.02 143 January 2, 2014

Practice as an ERPA is limited to representation with respect to issues involving the following programs: Employee Plans Determination Letter program; Employee Plans Compliance Resolution System; and Employee Plans Master and Prototype and Volume Submitter program. In addition, ERPAs are generally permitted to represent taxpayers with respect to Form 5300 series and Form 5500 filings, but not with respect to actuarial forms or schedules. For eligibility, application and enrollment information, see §§ 10.4, 10.5 and 10.6 of Circular 230;

A person with a "Letter of Authorization"

(f) Any other person, including a foreign representative, who has received a "Letter of Authorization" from the Director, Office of Professional Responsibility under section 10.7(d) of Treasury Department Circular No. 230. A person may make a written request for a "Letter of Authorization" to: Office of Director, Office of Professional Responsibility, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, DC 20224. Section 10.7(d) of Circular No. 230 authorizes the Commissioner to allow an individual who is not otherwise eligible to practice before the Service to represent another person in a particular matter. For additional information, see section 9.02(12) below;

Employee, general partner, bona fide officer, administrator, trustee, etc.

(g) The above requirements do not apply to a regular full-time employee representing his or her employer, to a general partner representing his or her partnership, to a bona fide officer representing his or her corporation, association, or organized group, to a trustee, receiver, guardian, personal representative, administrator, or executor representing a trust, receivership, guardianship, or estate, or to an individual representing his or her immediate family. A preparer of a return (other than a person referred to in paragraph (a), (b), (c), (d) or (e) of this section 9.02(11)) who is not a full-time employee, general partner, a bona fide officer, an administrator, trustee, etc., or an individual representing his or her immediate family may not represent a taxpayer in connection with a letter ruling, determination letter or a technical advice request. See section 10.7(c) of Treasury Department Circular No. 230; or

Foreign representative

(h) A foreign representative (other than a person referred to in paragraph (a), (b), (c), (d) or (e) of this section 9.02(11)) is not authorized to practice before the Service and, therefore, must withdraw from representing a taxpayer in a request for a letter ruling or a determination letter. In this situation, the nonresident alien or foreign entity must submit the request for a letter ruling or a determination letter on the individual's or entity's own behalf or through a person referred to in paragraph (a), (b), (c), (d) or (e) of this section 9.02(11).

Power of attorney and declaration of representative

(12) Power of attorney and declaration of representative. Any authorized representative, whether or not enrolled to practice, must also comply with the conference and practice requirements of the Statement of Procedural Rules (26 C.F.R. § 601.501-601.509), which provide the rules for representing a taxpayer before the Service. In addition, an unenrolled preparer must file a Form 8821 (Rev. October 2012), Tax Information Authorization, for certain limited employee plans matters. Form 2848 (Rev. March 2012), Power of Attorney and Declaration of Representative, must be used to provide the representative's authorization (Part I of Form 2848, Power of Attorney) and the representative's qualification (Part II of Form 2848, Declaration of Representative). The name of the person signing Part I of Form 2848 should also be typed or printed on this form. A stamped signature is not permitted. An original, a copy, or a facsimile transmission (fax) of the power of attorney is acceptable so long as its authenticity is not reasonably disputed. For additional information regarding the power of attorney form, see section 9.03(2) of this revenue procedure. For the requirement regarding compliance with Treasury Department Circular No. 230, see section 9.09 of this revenue procedure.

Penalties of perjury statement

(13) Penalties of perjury statement. (a) Format of penalties of perjury statement. A request for a letter ruling or determination letter and any change in the request submitted at a later time must be accompanied by the following declaration: "Under penalties of perjury, I declare that I have examined this request, or this modification to the request, including accompanying documents, and, to the best of my knowledge and belief, the request or the modification

contains all the relevant facts relating to the request, and such facts are true, correct,
and complete." See section 11.04 of this revenue procedure for the penalties of perjury
statement applicable for submissions of additional information.

(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer, not
the taxpayer's representative. Neither a stamped signature nor a faxed signature is permitted.

The person who signs for a corporate taxpayer must be an officer of the corporate
taxpayer who has personal knowledge of the facts, and whose duties are not limited to
obtaining a letter ruling or determination letter from the Service. If the corporate taxpayer is
a member of an affiliated group filing consolidated returns, a penalties of perjury statement
must also be signed and submitted by an officer of the common parent of the group.

The person signing for a trust, a state law partnership, or a limited liability company must be,
respectively, a trustee, general partner, or member-manager who has personal knowledge of the facts.

Applicable user fee

(14) Applicable user fee. Section 7528 of the Code requires taxpayers to pay user fees for requests
for rulings, opinion letters, determination letters, and similar requests. Rev. Proc. 2014-8 contains the
schedule of fees for each type of request under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division and provides guidance for administering the user fee requirements. If
two or more taxpayers are parties to a transaction and each requests a letter ruling, each taxpayer must
satisfy the rules herein and additional user fees may apply.

Number of copies of request
to be submitted

(15) Number of copies of request to be submitted. Generally a taxpayer needs only to submit one
copy of the request for a letter ruling or determination letter. If, however, more than one issue is
presented in the letter ruling request, the taxpayer is encouraged to submit additional copies of the
request.

Further, two copies of the request for a letter ruling or determination letter are required
if-

(a) the taxpayer is requesting separate letter rulings or determination letters on different
issues as explained later under section 9.03(1) of this revenue procedure;

(b) the taxpayer is requesting deletions other than names, addresses, and identifying numbers, as
explained in section 9.02(9) of this revenue procedure. (One copy is the request for the letter ruling or
determination letter and the second copy is the deleted version of such request.); or

(c) a closing agreement (as defined in section 3.03 of this revenue procedure) is being
requested on the issue presented.

Sample of a letter ruling
request

(16) Sample format for a letter ruling request. To assist a taxpayer or the taxpayer's
representative in preparing a letter ruling request, a sample format for a letter ruling request
is provided in Appendix A. This format is not required to be used by the taxpayer or the
taxpayer's representative. If the letter ruling request is not identical or similar to the format
in Appendix A, the different format will neither defer consideration of the letter ruling
request nor be cause for returning the request to the taxpayer or taxpayer's representative.

Checklist

(17) Checklist for letter ruling requests. The Service will be able to respond more quickly to
a taxpayer's letter ruling request if it is carefully prepared and complete. The checklist in Appendix B
of this revenue procedure is designed to assist taxpayers in preparing a request by reminding them of
the essential information and documents to be furnished with the request. The checklist in Appendix B
must be completed to the extent required by the instructions in the checklist, signed and dated by the
taxpayer or the taxpayer's representative, and placed on top of the letter ruling request. If the checklist
in Appendix B is not received, a group representative will ask the taxpayer or the taxpayer's
representative to submit the checklist, which may delay action on the letter ruling request. A
photocopy of this checklist may be used.

Additional information
required in certain
circumstances

.03

Multiple issues

(1) To request separate letter rulings for multiple issues in a single situation. If more
than one issue is presented in a request for a letter ruling, the Service generally will issue a
single ruling letter covering all the issues. However, if the taxpayer requests separate letter
rulings on any of the issues (because, for example, one letter ruling is needed sooner than
another), the Service will usually comply with the request unless it is not feasible or not in
the best interests of the Service to do so. A taxpayer who wants separate letter rulings on
multiple issues should make this clear in the request and submit two copies of the request.
Additional checklists are solely for the specific issues designated.

In issuing each letter ruling, the Service will state that it has issued separate letter rulings
or that requests for other letter rulings are pending.

Power of attorney

(2) Recipient of original letter ruling or determination letter. The Service will send the
original of the letter ruling or determination letter to the taxpayer and a copy of the letter
ruling or determination letter to the taxpayer's representative. In this case, the letter ruling or
determination letter is addressed to the taxpayer. A Form 2848, Power of Attorney and
Declaration of Representative (Rev. March 2012), must be used to provide the
representative's authorization except in certain employee plans matters. See section 9.02(12)
of this revenue procedure.

Copies of letter ruling or
determination letter sent to
multiple representatives

(a) To have copies sent to multiple representatives. When a taxpayer has more than one
representative, the Service will send the copy of the letter ruling or determination letter to any
representative with a check in the box in the name and address block on Form 2848 to indicate they
are to receive notices and communications. Copies of the letter ruling or determination letter, however,
will be sent to no more than two representatives.

(b) To have copy sent to taxpayer's representative. A copy of the letter ruling or
determination letter will be sent to any representative with a check in the box in the name
and address block on Form 2848 to indicate they are to receive notices and communications

Copy of letter ruling or
determination letter sent to
taxpayer's representative
Expedited handling

(3) To request expedited handling. The Service ordinarily processes requests for letter rulings
and determination letters in order of the date received. Determination Letter requests are not eligible
for expedited handling. Expedited handling means that a request is processed ahead of the regular
order. Expedited handling is granted only in rare and unusual cases, both out of fairness to other
taxpayers and because the Service seeks to process all requests as expeditiously as possible and to give
appropriate deference to normal business exigencies in all cases not involving expedited handling.

A taxpayer who has a compelling need to have a request for a letter ruling processed ahead of the
regular order may request expedited handling. This request must explain in detail the need for
expedited handling. The request must be made in writing, preferably in a separate letter with, or soon
after filing, the request for the letter ruling. If the request is not made in a separate letter, then the letter
in which the letter ruling request is made should say, at the top of the first page: "Expedited
Handling Is Requested. See page _of this letter."

A request for expedited handling will not be forwarded to the appropriate group for action until the
check or money order for the user fee in the correct amount is received.

Whether the request will be granted is within the Service's discretion. The Service may grant a
request when a factor outside a taxpayer's control creates a real business need to obtain a letter ruling
before a certain time in order to avoid serious business consequences. Examples include situations in
which a court or governmental agency has imposed a specific deadline for the completion of a
transaction, or a transaction must becompleted expeditiously to avoid an imminent business emergency
(such as the hostile takeover of a corporate taxpayer), provided that the taxpayer can demonstrate that
the deadline or business emergency, and the need for expedited handling, resulted from circumstances
that could not reasonably have been anticipated or controlled by the taxpayer. To qualify for expedited
handling in such situations, the taxpayer must also demonstrate that the taxpayer submitted the request
as promptly as possible after becoming aware of the deadline or emergency. The extent to which the
letter ruling complies with all of the applicable requirements of this revenue procedure, and fully and
clearly presents the issues, is a factor in determining whether expedited treatment will be granted.
When the Service agrees to process a request out of order, it cannot give assurance that any letter
ruling will be processed by the time requested. The scheduling of a closing date for a transaction or a

meeting of the board of directors or shareholders of a corporation, without regard for the time it may
take to obtain a letter ruling, will not be considered a sufficient reason to process a request ahead of its
regular order. Also, the possible effect of fluctuation in the market price of stocks on a transaction will
not be considered a sufficient reason to process a request out of order.

Because most requests for letter rulings cannot be processed ahead of their regular order, the
Service urges all taxpayers to submit their requests well in advance of the contemplated transaction. In
addition, in order to facilitate prompt action on letter ruling requests taxpayers are encouraged to
ensure that their initial submissions comply with all of the requirements of this revenue procedure
(including the requirements of other applicable guidelines set forth in section 10 of this revenue
procedure), and to provide any additional information requested by the Service promptly.

Facsimile transmission (fax)

(4) To receive a letter ruling or submit a request for a letter ruling by facsimile transmission
(fax).

(a) To receive a letter ruling by fax. A letter ruling ordinarily is not sent by fax. However, if the
taxpayer requests, a copy of a letter ruling may be faxed to the taxpayer or the taxpayer's authorized
representative. A letter ruling, however, is not issued until the ruling is mailed. See § 301.6110-2(h).

A request to fax a copy of the letter ruling to the taxpayer or the taxpayer's authorized
representative must be made in writing, either as part of the original letter ruling request or prior to the
approval of the letter ruling. The request must contain the fax number of the taxpayer or the
taxpayer's authorized representative to whom the letter ruling is to be faxed.

The Service will take certain precautions to protect confidential information. For example, the
Service will use a cover sheet that identifies the intended recipient of the fax and the number of pages
transmitted. The cover sheet, if possible, will not identify the specific taxpayer by name, and it will be
the first page covering the letter ruling being faxed.

(b) To submit a request for a letter ruling by fax. Original letter ruling requests sent by fax are
discouraged because such requests must be treated in the same manner as requests by letter. For
example, the faxed letter ruling request will not be forwarded to the applicable office for action until
the check for the user fee is received.

Requesting a conference

(5) To request a conference. A taxpayer who wants to have a conference on the issues involved
should indicate this in writing when, or soon after, filing the request. See also sections 12.01, 12.02,
and 13.09(2) of this revenue procedure.

Address to send the request
Requests for letter rulings

.04

(1) Requests for letter rulings should be sent to the following offices (as appropriate):

Internal Revenue Service
Attention: EP Letter Rulings
P.O. Box 27063
McPherson Station
Washington, D.C. 20038

Internal Revenue Service
Attention: EO Letter Rulings
P.O. Box 27720
McPherson Station
Washington, D.C. 20038

Hand delivered requests must be marked RULING REQUEST SUBMISSION. The delivery
should be made between the hours of 8:30 a.m. and 4:00 p.m., where a receipt will be given:

Courier's Desk
Internal Revenue Service
Attention: SE:T:EP:RA [for employee plans] or
SE:T:EO:RA [for exempt organizations]
1111 Constitution Avenue, N.W. - NCA
Washington, DC 20224

Requests for information letters

(2) Requests for information letters on either employee plans matters or exempt organizations matters should be sent to Employee Plans or Exempt Organizations (as appropriate): Internal Revenue Service

Commissioner, TE/GE Attention: SE:T:EP:RA or SE:T:EO:RA 1111 Constitution Avenue, N.W. - NCA Washington, DC 20224

Requests for determination letters

(3) Requests for either (i) EP determination letters or (ii) EO determination letters that are subject to a user fee should be sent to: Internal Revenue Service

P.O. Box 12192

Covington, KY 41012-0192

Requests for EO determination letters that are not subject to a user fee should be sent to:

Internal Revenue Service

P.O. Box 2508

Rm. 4024

Cincinnati, OH 45201

Requests for EO determination letters described in section 7.04(14) should be sent to:

Internal Revenue Service Attn: Correspondence Unit P.O. Box 2508 Cincinnati, OH 45201

For user fees required with determination letter requests, see section 6 of Rev. Proc. 2014-8.

Pending letter ruling requests

.05

(1) Circumstances under which the taxpayer must notify EP or EO Technical. The taxpayer must notify EP or EO Technical if, after the letter ruling request is filed but before a letter ruling is issued, the taxpayer knows that-

(a) an examination of the issue or the identical issue on an earlier year's return has been started by an EP or EO Examinations office;

(b) in employee plans matters, the issue is being considered by the Pension Benefit Guaranty Corporation or the Department of Labor; or

(2) Taxpayer must notify EP or EO Technical if return is filed and must attach request to return. If the taxpayer files a return before a letter ruling is received from EP or EO Technical concerning the issue, the taxpayer must notify EP or EO Technical that the return has been filed. The taxpayer must also attach a copy of the letter ruling request to the return to alert the EP or EO Examinations office and thereby avoid premature EP or EO Examinations office action on the issue.

When to attach letter ruling to return

.06 A taxpayer who receives a letter ruling before filing a return about any transaction that is relevant to the return being filed must attach a copy of the letter ruling to the return when it is filed.

How to check on status of request

.07 The taxpayer or the taxpayer's authorized representative may obtain information regarding the status of a request by calling the person whose name and telephone number are shown on the acknowledgement of receipt of the request.

# Request may be withdrawn or EP or EO Technical may decline to issue letter ruling

.08

(1) In general. A taxpayer may withdraw a request for a letter ruling or determination letter at any
time before the letter ruling or determination letter is signed by the Service. However, withdrawal in
exempt organization matters is limited by section 6 of Rev. Proc. 2014-9, next Bulletin.
Correspondence and exhibits related to a request that is withdrawn or related to a letter ruling request
for which the Service declines to issue a letter ruling will not be returned to the taxpayer. See section
9.02(2) of this revenue procedure. In appropriate cases, the Service may publish its conclusions in a
revenue ruling or revenue procedure.

A request for a letter ruling will not be suspended in EP or EO Technical at the request of a
taxpayer.

(2) Notification of Director, EP or EO Examinations. If a taxpayer withdraws a request for a
letter ruling or if EP or EO Technical declines to issue a letter ruling, EP or EO Technical will notify
the Director, EP or EO Examinations and may give its views on the issues in the request to the
Director, EP or EO Examinations to consider in any later examination of the return.

(3) Refunds of user fee. The user fee will not be returned for a letter ruling request that is
withdrawn. If the Service declines to issue a letter ruling on all of the issues in the request, the user
fee will be returned. If the Service, however, issues a letter ruling on some, but not all, of the issues,
the user fee will not be returned. See section 10 of Rev. Proc. 2014-8 for additional information
regarding refunds of user fees.

Compliance with Treasury
Department Circular No. 230

.09 The taxpayer's authorized representative, whether or not enrolled, must comply with Treasury
Department Circular No. 230, which provides the rules for practice before the Service. In those
situations when EP or EO Technical believes that the taxpayer's representative is not in compliance
with Circular No. 230, EP or EO Technical will bring the matter to the attention of the Director,
Office of Professional Responsibility.

For the requirement regarding compliance with the conference and practice requirements, see
section 9.02(12) of this revenue procedure.

## SECTION 10. WHAT SPECIFIC, ADDITIONAL PROCEDURES APPLY TO CERTAIN REQUESTS?

In general

.01 Specific revenue procedures and notices supplement the general instructions for requests
explained in section 9 of this revenue procedure and apply to requests for letter rulings or
determination letters regarding the Code sections and matters listed in this section.

Exempt Organizations

.02 If the request is for the qualification of an organization for exemption from federal income tax
under § 501 or 521, see Rev. Proc. 72-5, 1972-1 C.B. 709, regarding religious and apostolic
organizations; Rev. Proc. 80-27, 1980-1 C.B. 677, concerning group exemptions; Rev. Proc. 2014-9,
next Bulletin, regarding applications for recognition of exemption, determinations for which § 7428
applies, and conference protest and appeal rights; Rev. Proc. 2014-10, next Bulletin, regarding
determinations of private foundation status; and Notice 2011-44, 2011-25 I.R.B. 883, regarding
applications for reinstatement of tax-exempt status and requesting retroactive reinstatement under
§ 6033(j) of the Code.

Employee Plans

.03

(1) For requests to obtain approval for a retroactive amendment described in § 412(d)(2) of the
Code and section 302(d)(2) of the Employee Retirement Income Security Act of 1974 (ERISA) that
reduces accrued benefits, see Rev. Proc. 94-42, 1994-1 C.B. 717.

(2) For requests for a waiver of the minimum funding standard, see Rev. Proc. 2004-15, 2004-1
C.B. 490.

(3) For requests for a waiver of the 100 percent tax imposed under § 4971(b) of the Code on a

Sec. 10.03
January 2, 2014

pension plan that fails to meet the minimum funding standards of § 412, see Rev. Proc. 81-44,
1981-2 C.B. 618.

(4) For requests for a determination that a plan amendment is reasonable and provides for only de
minimis increases in plan liabilities in accordance with §§ 401(a)(33) and 412(c)(7)(B)(i), see Rev.
Proc. 79-62, 1979-2 C.B. 576.

(5) For requests to obtain approval for an extension of an amortization period of any unfunded
liability in accordance with §§ 431(d) of the Code and 304(d) of ERISA, see Rev. Proc. 2010-52,
2010-52 I.R.B. 927.

(6) For requests by administrators or sponsors of a defined benefit plan to obtain approval for a
change in funding method, see Rev. Proc. 2000-41, 2000-2 C.B. 371.

(7) For requests for the return to the employer of certain nondeductible contributions, see Rev. Proc.
90-49, 1990-2 C.B. 620 (as modified by Rev. Proc. 2014-8).

(8) For requests for determination letters for plans under §§ 401, 403(a), 409, and 4975(e)(7), and
for the exempt status of any related trust under § 501, see Rev. Proc. 2014-6, Rev. Proc. 93-10,
1993-1 C.B. 476 and Rev. Proc. 93-12, 1993-1 C.B. 479.

(9) For requests under § 414(e) relating to church plans, see Rev. Proc. 2011-44, 2011-39, I.R.B.
446.

.01 The Service will issue letter rulings on the matters and under the circumstances explained in
sections 4 and 6 of this revenue procedure and in the manner explained in this section and section 13
of this revenue procedure.

.02 The Service will not be bound by the informal opinion expressed by the group representative or
any other authorized Service representative under this procedure, and such an opinion cannot be relied
upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).

.03 If a request for a letter ruling or determination letter does not comply with all the provisions of
this revenue procedure, the request will be acknowledged and the Service representative will tell the
taxpayer during the initial contact which requirements have not been met.

Information must be
submitted within 30 calendar
days

If the request lacks essential information, which may include additional information needed to satisfy
the procedural requirements of this revenue procedure, as well as substantive changes to transactions
or documents needed from the taxpayer, the Service representative will tell the taxpayer during the
initial contact that the request will be closed if the Service does not receive the information within 30
calendar days unless an extension of time is granted. See section 11.04 of this revenue procedure for
information on extension of time and instructions on submissions of additional information.

A request for a letter ruling sent to EP/EO Determinations Processing that does not comply with the
provisions of this revenue procedure will be returned by EP/EO Determinations Processing so that the
taxpayer can make corrections before sending it to EP or EO Technical.

Letter ruling request
mistakenly sent to EP or EO
Determinations Processing

Requires prompt submission
of additional information
requested after initial contact

.04 Material facts furnished to the Service by telephone or fax, or orally at a conference, must be
promptly confirmed by letter to the Service. This confirmation and any additional information
requested by the Service that is not part of the information requested during the initial contact must be
furnished within 21 calendar days to be considered part of the request.

Additional information submitted to the Service must be accompanied by the following declaration:
"Under penalties of perjury, I declare that I have examined this information, including
accompanying documents, and, to the best of my knowledge and belief, the information contains
all the relevant facts relating to the request for the information, and such facts are true, correct,
and complete." This declaration must be signed in accordance with the requirements in section

Sec. 11.04
January 2, 2014

SECTION 11. HOW DOES
EP OR EO TECHNICAL
HANDLE LETTER
RULING REQUESTS?
In general

Is not bound by informal
opinion expressed

Tells taxpayer if request lacks
essential information during
initial contact

9.02(13)(b) of this revenue procedure. A taxpayer who submits additional factual information on
several occasions may provide one declaration subsequent to all submissions that refers to all
submissions.

(1) To facilitate prompt action on letter ruling requests, taxpayers are encouraged to submit
additional information by fax as soon as the information is available. The Service representative who
requests additional information can provide a telephone number to which the information can be
faxed. A copy of this information and a signed penalties of perjury statement, however, must be
mailed or delivered to the Service.

(2) Additional information should be sent to the same address as the original letter ruling request.
See section 9.04. However, the additional information should include the name, office symbols, and
room number of the Service representative who requested the information and the taxpayer's name
and the case control number (which the Service representative can provide).

(3) Generally, a taxpayer needs only to submit one copy of the additional information. However, in
appropriate cases, the Service may request additional copies of the information.

Number of copies of
additional information to be
submitted

30-day or 21-day period may
be extended if justified and
approved

(4) An extension of the 30-day period under section 11.03 or the 21-day period under section 11.04
will be granted only if justified in writing by the taxpayer and approved by the manager of the group
to which the case is assigned. A request for extension should be submitted before the end of the 30-
day or 21-day period. If unusual circumstances close to the end of the 30-day or 21-day period make
a written request impractical, the taxpayer should notify the Service within the 30-day or 21-day
period that there is a problem and that the written request for extension will be coming soon. The
taxpayer will be told promptly, and later in writing, of the approval or denial of the requested
extension. If the extension request is denied, there is no right of appeal.

### If taxpayer does not submit additional information

(5) If the taxpayer does not follow the instructions for submitting additional information or
requesting an extension within the time provided, a letter ruling will be issued on the basis of the
information on hand, or, if appropriate, no letter ruling will be issued. When the Service decides not to
issue a letter ruling because essential information is lacking, the case will be closed and the taxpayer
notified in writing. If the Service receives the information after the letter ruling request is closed, the
request may be reopened and treated as a new request. However, the taxpayer may be required to pay
another user fee before the case can be reopened.

Near the completion of the
ruling process, advises
taxpayer of conclusions and,
if the Service will rule
adversely, offers the taxpayer
the opportunity to withdraw
the letter ruling request
May request draft of
proposed letter ruling near
the completion of the ruling
process

.05 Generally, after the conference of right is held before the letter ruling is issued, the Service
representative will inform the taxpayer or the taxpayer's authorized representative of the Service's final
conclusions. If the Service is going to rule adversely, the taxpayer will be offered the opportunity to
withdraw the letter ruling request. If the taxpayer or the taxpayer's representative does not promptly
notify the Service representative of a decision to withdraw the ruling request, the adverse letter will be
issued. The user fee will not be refunded for a letter ruling request that is withdrawn. See section 10 of
Rev. Proc. 2014-8.

.06 To accelerate issuance of letter rulings, in appropriate cases near the completion of the ruling
process, the Service representative may request that the taxpayer or the taxpayer's representative
submit a proposed draft of the letter ruling on the basis of discussions of the issues. The taxpayer,
however, is not required to prepare a draft letter ruling in order to receive a letter ruling.

The format of the submission should be discussed with the Service representative who requests the
draft letter ruling. The representative usually can provide a sample format of a letter ruling and will
discuss the facts, analysis, and letter ruling language to be included.

The typed draft will become part of the permanent files of the Service. If the Service representative
requesting the draft letter ruling cannot answer specific questions about the format, the questions can
be directed to Jason Levine at (202) 317-8630 (Employee Plans), or Dave Rifkin at (202) 317-8525
(Exempt Organizations) (not toll-free calls).

The proposed letter ruling should be sent to the same address as any additional information and
contain in the transmittal the information that should be included with any additional information (for
example, a penalties of perjury statement is required). See section 11.04 of this revenue procedure.

Sec. 11.06
January 2, 2014

Encourage use of fax

### Address to send additional information

## SECTION 12. HOW ARE CONFERENCES SCHEDULED?

Schedules a conference if requested by taxpayer

.01 A taxpayer may request a conference regarding a letter ruling request. Normally, a conference is scheduled only when the Service considers it to be helpful in deciding the case or when an adverse decision is indicated. If conferences are being arranged for more than one request for a letter ruling involving the same taxpayer, they will be scheduled so as to cause the least inconvenience to the taxpayer. As stated in section 9.03(5) of this revenue procedure, a taxpayer who wants to have a conference on the issue or issues involved should indicate this in writing when, or soon after, filing the request.

If a conference has been requested, the taxpayer will be notified by telephone, if possible, of the time and place of the conference, which must then be held within 21 calendar days after this contact. Instructions for requesting an extension of the 21-day period and notifying the taxpayer or the taxpayer's representative of the Service's approval or denial of the request for extension are the same as those explained in section 11.04 of this revenue procedure regarding providing additional information.

Permits taxpayer one conference of right

.02 A taxpayer is entitled, as a matter of right, to only one conference, except as explained under section 12.05 of this revenue procedure. This conference normally will be held at the group level and will be attended by a person who, at the time of the conference, has the authority to sign the ruling letter in his or her own name or for the group manager.

When more than one group has taken an adverse position on an issue in a letter ruling request, or when the position ultimately adopted by one group will affect that adopted by another, a representative from each group with the authority to sign in his or her own name or for the group manager will attend the conference. If more than one subject is to be discussed at the conference, the discussion will constitute a conference on each subject.

To have a thorough and informed discussion of the issues, the conference usually will be held after the group has had an opportunity to study the case. However, at the request of the taxpayer, the conference of right may be held earlier.

No taxpayer has a right to appeal the action of a group to any other official of the Service. But see section 12.05 of this revenue procedure for situations in which the Service may offer additional conferences.

Disallows verbatim recording of conferences

.03 Because conference procedures are informal, no tape, stenographic, or other verbatim recording of a conference may be made by any party.

Makes tentative recommendations on substantive issues

.04 The senior Service representative present at the conference ensures that the taxpayer has the opportunity to present views on all the issues in question. A Service representative explains the Service's tentative decision on the substantive issues and the reasons for that decision. If the taxpayer asks the Service to limit the retroactive effect of any letter ruling or limit the revocation or modification of a prior letter ruling, a Service representative will discuss the recommendation concerning this issue and the reasons for the recommendation. However, the representatives will not make a commitment regarding the conclusion that the Service intends to adopt.

May offer additional conferences

.05 The Service will offer the taxpayer an additional conference if, after the conference of right, an adverse holding is proposed, but on a new issue, or on the same issue but on different grounds from those discussed at the first conference. There is no right to another conference when a proposed holding is reversed at a higher level with a result less favorable to the taxpayer, if the grounds or arguments on which the reversal is based were discussed at the conference of right. The limit on the number of conferences to which a taxpayer is entitled does not prevent the Service from offering additional conferences, including conferences with an official higher than the group level, if the Service decides they are needed. Such conferences are not offered as a matter of course simply because the group has reached an adverse decision. In general, conferences with higher level officials are offered only if the Service determines that the case presents significant issues of tax policy

or tax administration and that the consideration of these issues would be enhanced by additional conferences with the taxpayer.

Requires written confirmation of information presented at conference

.06 The taxpayer should furnish to the Service any additional data, reasoning, precedents, etc., that were proposed by the taxpayer and discussed at the conference but not previously or adequately presented in writing. The taxpayer must furnish the additional information within 21 calendar days from the date of the conference. See section 11.04 of this revenue procedure for instructions on submission of additional information. If the additional information is not received within that time, a ruling will be issued on the basis of the information on hand or, if appropriate, no ruling will be issued. Procedures for requesting an extension of the 21-day period and notifying the taxpayer or the taxpayer's representative of the Service's approval or denial of the requested extension are the same as those stated in section 11.04 of this revenue procedure regarding submitting additional information.

May schedule a pre- submission conference

.07 Sometimes it will be advantageous to both the Service and the taxpayer to hold a conference before the taxpayer submits the letter ruling request to discuss substantive or procedural issues relating to a proposed transaction. These conferences are held only if the identity of the taxpayer is provided to the Service, only if the taxpayer actually intends to make a request, only if the request involves a matter on which a letter ruling is ordinarily issued, and only at the discretion of the Service and as time permits. For example, a pre-submission conference will not be held on an income tax issue if, at the time the pre-submission conference is requested, the identical issue is involved in the taxpayer's return for an earlier period and that issue is being examined. See section 6 of this revenue procedure. Generally, the taxpayer will be asked to provide before the pre-submission conference a statement of whether the issue is an issue on which a letter ruling is ordinarily issued and a draft of the letter ruling request or other detailed written statement of the proposed transaction, issue, and legal analysis. If the taxpayer's representative will attend the pre-submission conference, a power of attorney form is required. A Form 2848, Power of Attorney and Declaration of Representative, must be used to provide the representative's authorization. Any discussion of substantive issues at a pre-submission conference is advisory only, is not binding on the Service, and cannot be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b). See section 3.08(2) of this procedure. A letter ruling request submitted following a pre-submission conference will not necessarily be assigned to the group that held the pre- submission conference.

Under limited circumstances, may schedule a conference to be held by telephone

.08 A taxpayer may request that their conference of right be held by telephone. This request may occur, for example, when a taxpayer wants a conference of right but believes that the issue involved does not warrant incurring the expense of traveling to Washington, DC. If a taxpayer makes such a request, the group manager will decide if it is appropriate in the particular case to hold the conference of right by telephone. If the request is approved by the group manager, the taxpayer will be advised when to call the Service representatives (not a toll-free call).

Conference rules for EO determination letters not subject to § 7428 or § 501 or § 521 SECTION 13. WHAT EFFECT WILL A LETTER RULING HAVE?

.09 The procedures for requesting a conference for determination letters that are not subject to § 7428 or § 501 or § 521 are the same as described in this section, except that generally conferences will be held by telephone.

May be relied on subject to limitations

.01 A taxpayer ordinarily may rely on a letter ruling received from the Service subject to the conditions and limitations described in this section.

Will not apply to another taxpayer

.02 A taxpayer may not rely on a letter ruling issued to another taxpayer. See § 6110(k)(3).

Will be used by the Director, EP or EO Examinations in examining the taxpayer's return

.03 When determining a taxpayer's liability, the Director, EP or EO Examinations must ascertain whether- Sec. 13.03

Bulletin No. 2014-1

153 January 2, 2014

(1) the conclusions stated in the letter ruling are properly reflected in the return;

(2) the representations upon which the letter ruling was based reflected an accurate statement of the
material facts;

(3) the transaction was carried out substantially as proposed; and

(4) there has been any change in the law that applies to the period during which the transaction or
continuing series of transactions were consummated.

If, when determining the liability, the Director, EP Examinations finds that a letter ruling should be
revoked or modified, unless a waiver is obtained from EP Technical, the findings and
recommendations of the Director, EP Examinations will be forwarded to EP Technical for
consideration before further action is taken by the Director, EP Examinations. Such a referral to EP
Technical will be treated as a request for technical advice and the procedures of Rev. Proc. 2014-5
will be followed. Otherwise, the letter ruling is to be applied by the Director, EP Examinations in
determining the taxpayer's liability. Appropriate coordination with EP Technical will be undertaken if
any field official having jurisdiction over a return or other matter proposes to reach a conclusion
contrary to a letter ruling previously issued to the taxpayer.

In certain exempt organizations cases, section 4.04 of Rev. Proc. 2014-5 provides that a request for
a TAM is mandatory.

### May be revoked or modified if found to be in error

.04 Unless it was part of a closing agreement as described in section 3.03 of this revenue procedure,
a letter ruling found to be in error or not in accord with the current views of the Service may be
revoked or modified. If a letter ruling is revoked or modified, the revocation or modification applies to
all years open under the statute of limitations unless the Service uses its discretionary authority under
§ 7805(b) to limit the retroactive effect of the revocation or modification.

A letter ruling may be revoked or modified due to-

(1) a notice to the taxpayer to whom the letter ruling was issued;

(2) the enactment of legislation or ratification of a tax treaty;

(3) a decision of the United States Supreme Court;

(4) the issuance of temporary or final regulations; or

(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement published in the
Internal Revenue Bulletin.

Consistent with these provisions, if a letter ruling relates to a continuing action or a series of actions,
it ordinarily will be applied until any one of the events described above occurs or until it is specifically
withdrawn.

Publication of a notice of proposed rulemaking will not affect the application of any letter ruling
issued under this revenue procedure.

Not generally revoked or
modified retroactively

.05 Except in rare or unusual circumstances, the revocation or modification of a letter ruling will not
be applied retroactively to the taxpayer for whom the letter ruling was issued or to a taxpayer whose
tax liability was directly involved in the letter ruling provided that-

(1) there has been no misstatement or omission of material facts;

(2) the facts at the time of the transaction are not materially different from the facts on which the
letter ruling was based;

(3) there has been no change in the applicable law;

(4) the letter ruling was originally issued for a proposed transaction; and

(5) the taxpayer directly involved in the letter ruling acted in good faith in relying on the letter
ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer's

detriment. For example, the tax liability of each employee covered by a ruling relating to a
qualified plan of an employer is directly involved in such ruling. However, the tax liability of a
member of an industry is not directly involved in a letter ruling issued to another member and,
therefore, the holding in a revocation or modification of a letter ruling to one member of an
industry may be retroactively applied to other members of the industry. By the same reasoning, a
tax practitioner may not extend to one client the non-retroactive application of a revocation or
modification of a letter ruling previously issued to another client.

If a letter ruling is revoked or modified by letter with retroactive effect, the letter will, except
in fraud cases, state the grounds on which the letter ruling is being revoked or modified and
explain the reasons why it is being revoked or modified retroactively.

.06 A letter ruling issued on a particular transaction represents a holding of the Service on that
transaction only. It will not apply to a similar transaction in the same year or any other year.
And, except in unusual circumstances, the application of that letter ruling to the transaction will
not be affected by the later issuance of regulations (either temporary or final), if conditions (1)
through (5) in section 13.05 of this revenue procedure are met.

However, if a letter ruling on a transaction is later found to be in error or no longer in accord
with the position of the Service, it will not protect a similar transaction of the taxpayer in the
same year or later year.

.07 If a letter ruling is issued covering a continuing action or series of actions and the letter
ruling is later found to be in error or no longer in accord with the position of the Service, the
Commissioner, Tax Exempt and Government Entities Division, ordinarily will limit the
retroactive effect of the revocation or modification to a date that is not earlier than that on which
the letter ruling is revoked or modified.

.08 A taxpayer is not protected against retroactive revocation or modification of a letter ruling
involving a completed transaction other than those described in section 13.07 of this revenue
procedure, because the taxpayer did not enter into the transaction relying on a letter ruling.

.09 Under § 7805(b), the Service may prescribe any extent to which a revocation or
modification of a letter ruling or determination letter will be applied without retroactive effect.

Taxpayer may request that
retroactivity be limited

A taxpayer to whom a letter ruling or determination letter has been issued may request that the
Commissioner, Tax Exempt and Government Entities Division, limit the retroactive effect of any
revocation or modification of the letter ruling or determination letter.

Format of request

### (1) Request for relief under § 7805(b) must be made in required format.

A request to limit the retroactive effect of the revocation or modification of a letter ruling must
be in the general form of, and meet the general requirements for, a letter ruling request. These
requirements are given in section 9 of this revenue procedure. Specifically, the request must also-

(a) state that it is being made under § 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief requested (including a discussion
of the five items listed in section 13.05 of this revenue procedure and any other factors as they
relate to the taxpayer's particular situation); and

(d) include any documents bearing on the request.

A request that the Service limit the retroactive effect of a revocation or modification of a letter
ruling may be made in the form of a separate request for a letter ruling when, for example, a revenue
ruling has the effect of revoking or modifying a letter ruling previously issued to the taxpayer, or
when the Service notifies the taxpayer of a change in position that will have the effect of revoking or
modifying the letter ruling. However, when notice is given by the Director, EP or EO Examinations
during an examination of the taxpayer's return or by an Appeals Area Director, or the Appeals
Domestic Operations Director, during consideration of the taxpayer's return before an appeals office, a

Retroactive effect of
revocation or modification
applied only to a particular
transaction

Retroactive effect of
revocation or modification
applied to a continuing
action or series of actions

May be retroactively
revoked or modified when
transaction is completed
without reliance on the
letter ruling

request to limit retroactive effect must be made in the form of a request for technical advice as
explained in section 19 of Rev. Proc. 2014-5.

When germane to a pending letter ruling request, a request to limit the retroactive effect
of a revocation or modification of a letter ruling may be made as part of the request for the
letter ruling, either initially or at any time before the letter ruling is issued. When a letter
ruling that concerns a continuing transaction is revoked or modified by, for example, a
subsequent revenue ruling, a request to limit retroactive effect must be made before the
examination of the return that contains the transaction that is the subject of the letter ruling
request.

Consideration of relief under § 7805(b) will be included as one of the taxpayer's steps in
exhausting administrative remedies only if the taxpayer has requested such relief in the
manner described in this revenue procedure. If the taxpayer does not complete the applicable
steps, the taxpayer will not have exhausted the taxpayer's administrative remedies as
required by § 7428(b)(2) and § 7476(b)(3) and will, thus, be precluded from seeking a
declaratory judgment under § 7428 or § 7476. Where the taxpayer has requested § 7805(b)
relief, the taxpayer's administrative remedies will not be considered exhausted until the
Service has had a reasonable time to act upon the request.

Request for conference

### (2) Taxpayer may request a conference on application of § 7805(b).

A taxpayer who requests the application of § 7805(b) in a separate letter ruling request has the right
to a conference in EP or EO Technical as explained in sections 12.01, 12.02, 12.03, 12.04 and 12.05
of this revenue procedure. If the request is made initially as part of a pending letter ruling request or is
made before the conference of right is held on the substantive issues, the § 7805(b) issue will be
discussed at the taxpayer's one conference of right as explained in section 12.02 of this revenue
procedure. If the request for the application of § 7805(b) relief is made as part of a pending letter
ruling request after a conference has been held on the substantive issue and the Service determines that
there is justification for having delayed the request, the taxpayer is entitled to one conference of right
concerning the application of § 7805(b), with the conference limited to discussion of this issue only.

# SECTION 14. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?

Has same effect as a letter
ruling

.01 A determination letter issued by EP or EO Determinations has the same effect as a
letter ruling issued to a taxpayer under section 13 of this revenue procedure.

If the Director, EP or EO Examinations proposes to reach a conclusion contrary to that
expressed in a determination letter, he or she need not refer the matter to EP or EO
Technical. However, the Director, EP or EO Examinations must refer the matter to EP or
EO Technical if the Director, EP or EO Examinations desires to have the revocation or
modification of the determination letter limited under § 7805(b).

Taxpayer may request that
retroactive effect of
revocation or modification
be limited

.02 The Director, EP or EO Examinations does not have authority under § 7805(b) to limit the
revocation or modification of the determination letter. Therefore, if the Director, EP or EO
Examinations proposes to revoke or modify a determination letter, the taxpayer may request limitation
of the retroactive effect of the revocation or modification by asking EP or EO Determinations to seek
technical advice from EP or EO Technical. See section 19 of Rev. Proc. 2014-5.

Format of request

## (1) Request for relief under § 7805(b) must be made in required format.

A taxpayer's request to limit the retroactive effect of the revocation or modification of the
determination letter must be in the form of, and meet the general requirements for, a technical advice
request. See section 18.06 of Rev. Proc. 2014-5. The request must also-

(a) state that it is being made under § 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief sought (including a discussion of the five items listed in section 13.05 of this revenue procedure and any other factors as they relate to the taxpayer's particular situation); and (d) include any documents bearing on the request.

Request for conference

(2) Taxpayer may request a conference on application of § 7805(b). When technical advice is requested regarding the application of § 7805(b), the taxpayer has the right to a conference in EP or EO Technical to the same extent as does any taxpayer who is the subject of a technical advice request. See section 11 of Rev. Proc. 2014-5.

Exhaustion of administrative remedies

(3) Taxpayer steps in exhausting administrative remedies.

Consideration of relief under § 7805(b) will be included as one of the taxpayer's steps in exhausting administrative remedies only if the taxpayer has requested such relief in the manner described in this revenue procedure. If the taxpayer does not complete the applicable steps, the taxpayer will not have exhausted the taxpayer's administrative remedies as required by § 7428(b)(2) and § 7476(b)(3) and will, thus, be precluded from seeking a declaratory judgment under § 7428 or § 7476. Where the taxpayer has requested § 7805(b) relief, the taxpayer's administrative remedies will not be considered exhausted until the Service has had a reasonable time to act upon the request.

SECTION 15. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN DETERMINATIONS AND TECHNICAL?

Requests for determination letters

.01 Requests for determination letters received by EP or EO Determinations that, under the provisions of this revenue procedure, may not be issued by EP or EO Determinations, will be forwarded to EP or EO Technical for reply. EP Determinations or EO Technical will notify the taxpayer that the matter has been referred. EP or EO Determinations will also refer to EP or EO Technical any request for a determination letter that in its judgment should have the attention of EP or EO Technical.

No-rule areas

.02 If the request involves an issue on which the Service will not issue a letter ruling or determination letter, the request will not be forwarded to EP or EO Technical. EP or EO Determinations will notify the taxpayer that the Service will not issue a letter ruling or a determination letter on the issue. See sections 7 and 8 of this revenue procedure for a description of no-rule areas.

Requests for letter rulings

.03 Requests for letter rulings received by EP or EO Technical that, under section 6 of this revenue procedure, may not be acted upon by EP or EO Technical will be forwarded to the Director, EP or EO Examinations. The taxpayer will be notified of this action. If the request is on an issue or in an area of the type discussed in section 8 of this revenue procedure, and the Service decides not to issue a letter ruling or an information letter, EP or EO Technical will notify the taxpayer and will then forward the request to the Director, EP or EO Examinations for association with the related return.

SECTION 16. WHAT ARE THE GENERAL PROCEDURES APPLICABLE TO INFORMATION LETTERS ISSUED BY THE SERVICE?

Will be made available to the public Bulletin No. 2014-1

.01 Information letters that are issued by the Service to members of the public will be made available to the public. These documents provide general statements of well-defined law without applying them to a specific set of facts. See section 3.06 of this revenue procedure. Information letters that are issued by the field, however, will not be made available to the public. Sec. 16.01

157 January 2, 2014

The following documents also will not be available for public inspection as part of this process:

(1) letters that merely transmit Service publications or other publicly available material, without
significant legal discussion;

(2) responses to taxpayer or third party contacts that are inquiries with respect to a pending request
for a letter ruling, technical advice memorandum, or Chief Counsel Advice (whose public inspection is
subject to § 6110); and

(3) responses to taxpayer or third party communications with respect to any investigation, audit,
litigation, or other enforcement action.

.02 Before any information letter is made available to the public, the Service will delete any name,
address, and other identifying information as appropriate under the Freedom of Information Act
("FOIA") (for example, FOIA personal privacy exemption of 5 U.S.C. § 552(b)(6) and tax details
exempt pursuant to § 6103, as incorporated into FOIA by 5 U.S.C. § 552(b)(3)). Because information
letters do not constitute written determinations (including Chief Counsel Advice) as defined in § 6110,
these documents are not subject to public inspection under § 6110.

.03 Information letters are advisory only and have no binding effect on the Service. See section 3.06
of this revenue procedure. If the Service issues an information letter in response to a request for a
letter ruling that does not meet the requirements of this revenue procedure, the information letter is not
a substitute for a letter ruling.

Rev. Proc. 2013-4 is superseded.

This revenue procedure is effective January 2, 2014.

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 1545-1520.

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 OMB control number.

The collections of information in this revenue procedure are in sections 7.07, 9.02, 9.03, 9.04, 9.05,
9.06, 10.02, 10.03, 11.03, 11.04(1)-(5), 11.06, 12.01, 12.06, 12.07, 13.09(1), 14.02(1), and in
Appendices B, C, D and E. 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.

The estimated total annual reporting and/or recordkeeping burden is 12,650 hours.

The estimated annual burden per respondent/recordkeeper varies from 15 minutes to 16 hours,
depending on individual circumstances and the type of request involved, with an estimated average
burden of 6.01 hours. The estimated number of respondents and/or recordkeepers is 2,103.

The estimated annual frequency of responses is one request per applicant, except that a taxpayer
requesting a letter ruling may also request a presubmission conference.

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.

## Deletions made under the Freedom of Information Act

## Effect of information letters

SECTION 17. WHAT IS
THE EFFECT OF THIS
REVENUE PROCEDURE
ON OTHER
DOCUMENTS?

## SECTION 18. EFFECTIVE DATE

## SECTION 19. PAPERWORK REDUCTION ACT

# DRAFTING INFORMATION

The principal author of this revenue procedure is Eric D. Slack of the Employee Plans, Tax Exempt
and Government Entities Division. For further information regarding how this revenue procedure
applies to employee plans and exempt organizations matters, contact the Exempt Organizations and
Employee Plans Customer Assistance Center at 877-829-5500. For employee plans matters, Mr. Slack
can be emailed at RetirementPlanQuestions@irs.gov. For exempt organizations matters, Mr. Dave
Rifkin can be emailed at tege.eo@irs.gov. Please put "Question about Rev. Proc. 2014-4" in the
subject line.

# INDEX

References are to sections in Rev. Proc. 2014-4

sec. 9.02(9), 9.03, 11.03, 11.04
additional information

closing agreement.

sec. 3.03, 6.06(4), 9.02(4), 9.02(15), 13.04

conference
sec. 9.02(9), 9.03(5), 12.01 -. 09, 13.09(2), 14.02(2)

disclose

sec. 9.02(9)

exempt organization

sec. 6.01

expedited handling

sec. 9.03(3)

extension

sec. 6.02, 6.04, 11.04, 12.01, 12.06

fax

sec. 9.03(4), 11.04

fee

sec. 9.02(14), 11.04(5)

hand delivered.
9.04(1)

information letter.

sec. 3.06, 8.01, 15.03

no rule

sec. 8, 15.02

penalties of perjury statement

sec. 9.02(13), 11.04, 11.06

power of attorney

sec. 9.02(12), 9.03(2)

reliance

sec. 3.09, 11.02, 12.07, 13, 14

sec. 3.09, 9.02(10)-(11), 9.03(2)
representatives

retroactive

sec. 11.02, 12.04, 12.07, 13, 14

revenue ruling

sec. 3.07, 13.04, 13.09(1)

sec. 9.02(9), 13.02
section 6110

status
sec. 9.07

sec. 7.08, 13.03, 13.09(1), 14
technical advice

sec. 9.02(1), 11.04, 12.01, 12.08
telephone

where to send

sec. 9.04
withdraw.

sec. 9.08

# APPENDIX A SAMPLE FORMAT FOR A LETTER RULING REQUEST

(Insert the date of request)

[for Employee Plans]
Internal Revenue Service
Attention: EP Letter Rulings
P.O. Box 27063
McPherson Station
Washington, D.C. 20038

[for Exempt Organizations]
Internal Revenue Service
Attention: EO Letter Rulings
P.O. Box 27720
McPherson Station
Washington, D.C. 20038

Dear Sir or Madam:

(Insert the name of the taxpayer) (the "Taxpayer") requests a ruling on the proper treatment of (insert the subject matter of
the letter ruling request) under § (insert the number) of the Internal Revenue Code.

[If the taxpayer is requesting expedited handling, the letter ruling request must contain a statement to that effect. This
statement must explain the need for expeditious handling. See section 9.03(3).]

## A. STATEMENT OF FACTS

### 1. Taxpayer Information

[Provide the statements required by sections 9.02(1)(a), (b), and (c) of Rev. Proc. 2014-4, 2014-1 I.R.B. 125. (Hereafter, all
references are to Rev. Proc. 2014-4 unless otherwise noted.)]

For example, a taxpayer that maintains a qualified employee retirement plan and files an annual Form 5500 series of returns
may include the following statement to satisfy sections 9.02(1)(a), (b), and (c):

The Taxpayer is a construction company with principal offices located at 100 Whatever Drive, Wherever, Maryland 12345, and its
telephone number is (123) 456-7890. The Taxpayer's federal employer identification number is 00-1234567. The Taxpayer uses the
Form 5500 series of returns on a calendar year basis to report its qualified employee retirement plan and trust.

2\. Detailed Description of the 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 9.02(1)(b), 9.02(1)(c), and 9.02(2).]

## B. RULING REQUESTED

[The ruling request should contain a concise statement of the ruling requested by the taxpayer.]

## C. STATEMENT OF LAW

[The ruling request must contain a statement of the law in support of the taxpayer's views or conclusion, including any authorities
believed to be contrary to the position advanced in the ruling request. This statement must also identify any pending legislation that may
affect the proposed transaction. See sections 9.02(6), 9.02(7), and 9.02(8).]

D. ANALYSIS

[The ruling request must contain a discussion of the facts and an analysis of the law. See sections 9.02(3), 9.02(6), 9.02(7), and 9.02(8).]

# E. CONCLUSION

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

F. PROCEDURAL MATTERS

1\. Rev. Proc. 2014-4 statements

a. [The statement required by section 9.02(4).]

b. [The statement required by section 9.02(5).]

c. [The statement required by section 9.02(6) regarding whether the law in connection with the letter ruling request is uncertain and
whether the issue is adequately addressed by relevant authorities.]

d. [The statement required by section 9.02(7) when the taxpayer determines that there are no contrary authorities.]

e. [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 9.03(5).]

f. [If the taxpayer is requesting the letter ruling to be issued by fax, the ruling request should contain a statement to that effect. See
section 9.03(4).]

g. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement to that
effect. See section 9.03(1).]

2\. Administrative

a. A Power of Attorney is enclosed. [See sections 9.02(12) and 9.03(2).]

b. The deletions statement and checklist required by Rev. Proc. 2014-4 are enclosed. [See sections 9.02(9) and 9.02(17).]

c. The required user fee is enclosed. [See section 9.02(14).]

Very truly yours,
(Insert the name of the taxpayer or the taxpayer's
authorized representative)

By:

Signature

Date

Typed or printed name
of person signing request

DECLARATION: [See section 9.02(13).]

(Insert the name of the taxpayer)

By:

Signature

Title

Date

Typed or printed name of
person signing declaration

# APPENDIX B CHECKLIST IS YOUR 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. To ensure
that your request is in order, use this checklist. 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 be cause for returning your request or deferring substantive consideration of the request. However, 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 N/A

1. Does your request involve an issue under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division? See section 5 of Rev. Proc. 2014-4, 2014-1 I.R.B. 125, for issues under the jurisdiction of other offices. (Hereafter, all references are to Rev. Proc. 2014-4 unless otherwise noted.)

Yes No N/A

2. 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 private letter ruling? Before preparing your request, you may want to call the office 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. The appropriate office to call for this information may be obtained by calling (202) 317-8700 (Employee Plans matters), or (202) 317-8989 (Exempt Organizations matters) (not toll-free calls).

Yes No N/A Page

3. If the request involves an employee plans qualification matter under § 401(a), § 409, or § 4975(e)(7), have you demonstrated that the request satisfies the three criteria in section 6.03 for a ruling?

Yes No N/A Page

4. If the request deals with a completed transaction, have you filed the return for the year in which the transaction was completed? See sections 6.01 and 6.02.

Yes No

5. Are you requesting a letter ruling on a hypothetical situation or question? See section 8.03.

Yes No

6. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 8.03.

Yes No

7. Are you requesting the letter ruling for only part of an integrated transaction? See section 8.04.

Yes No

8. Have you submitted another letter ruling request for the transaction covered by this request?

Yes No

9. 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 6.07.

Yes No Pages

10. Have you included a complete statement of all the facts relevant to the transaction? See section 9.02(1).

Yes No N/A

11. Have you submitted with the request true copies of all wills, deeds, plan documents, and other documents relevant to the transaction, and labeled and attached them in alphabetical sequence? See section 9.02(2).

Yes No Page

12. Have you included, rather than merely by reference, all material facts from the documents in the request? Are they accompanied by an analysis of their bearing on the issues that specifies the document provisions that apply? See section 9.02(3).

Yes No Page

13. Have you included the required statement regarding whether the same issue in the letter ruling request is in an earlier return of the taxpayer or in a return for any year of a related taxpayer? See section 9.02(4).

Yes No Page

14. 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 9.02(5).

Yes No Page

15. Have you included the required statement regarding whether the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted the same or similar issue but withdrew it before the letter ruling was issued? See section 9.02(5).

Yes No Page

16. 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 9.02(6).

Yes No Pages

9.02(6). 17. Have you included the required statement of relevant authorities in support of your views? See section

Yes No N/A Pages

18. Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations, notices, revenue rulings, or revenue procedures you determined to be contrary to the position advanced? See section 9.02(7), which states that taxpayers are encouraged to inform the Service of such authorities.

Yes No N/A Page

19. If you determined that there are no contrary authorities, have you included a statement to this effect in your request? See section 9.02(7).

Yes No N/A Page

20. Have you included in your request a statement identifying any pending legislation that may affect the proposed transaction? See section 9.02(8).

Yes No

21. Is the request accompanied by the deletions statement required by § 6110? See section 9.02(9).

Yes No N/A Page

22. Have you (or your authorized representative) signed and dated the request? See section 9.02(10).

Yes No N/A

23. 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 9.02(12).

Yes No N/A Page __

24. Have you included, signed and dated, the penalties of perjury statement in the form required by section 9.02(13)?

Yes No N/A

25. Have you included the correct user fee with the request and made your check or money order payable to the United States Treasury? See section 9.02(14) and Rev. Proc. 2014-8, page 242, this Bulletin for the correct amount and additional information on user fees.

Yes No N/A

26. Are you submitting your request in duplicate if necessary? See section 9.02(15).

Yes No N/A Pages __

27. 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 9.03(1).

Yes No N/A Page __

28. If you have more than one representative, have you designated whether the representatives listed on the power of attorney are to receive a copy of the letter ruling? See section 9.03(2).

Yes No N/A

29. 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 form required by section 9.03(3) and stated a compelling need for such action in the request?

Yes No N/A Page __

30. If you want to have a conference on the issues involved in the request, have you included a request for conference in the ruling request? See section 9.03(5).

Yes No N/A

31. If your request is covered by any of the guideline revenue procedures or other special requirements listed in section 10 of Rev. Proc. 2014-4, have you complied with all of the requirements of the applicable revenue procedure?

32\. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all
of the requirements in section 13.09?

Yes No N/A
Page_
Yes No N/A
33. Have you addressed your request to the appropriate office listed in section 9.04? Improperly addressed
requests may be delayed (sometimes for over a week) in reaching the appropriate office for initial
processing.

Signature

Title or authority

Date

Typed or printed name of
person signing checklist

# APPENDIX C Additional Checklist for Roth IRA Recharacterization Ruling Requests

In order to assist EP Technical in processing a ruling request involving a Roth IRA recharacterization, in addition to the
items in Appendix B, please check the following list.

Yes No N/A Page

1. Did you include the name(s) of trustee and/or custodian of the traditional individual retirement account (IRA) (generally, a financial institution)?

Yes No N/A Page

2. Is each IRA identification number present?

Yes No N/A Page

3. If the ruling request involves Roth conversions of a married couple, is the necessary information with respect to each IRA of each party present? Note: as long as the parties file a joint federal Form 1040, the Service can issue one ruling covering both parties. Furthermore, if a joint federal income tax return has been filed for the year or years in question, the Service only requires one user fee even if each spouse had failed conversions.

Yes No N/A Page

4. If there was one or more attempted conversions, are the applicable dates on which the attempted IRA conversion(s) occurred included?

Yes No N/A Page

5. If the reason that a conversion failed is that the taxpayer or related taxpayers relied upon advice of a tax professional such as a CPA, or an attorney, is the name and occupation of that adviser included?

Yes No N/A Page

6. Is certification that the taxpayer or taxpayers timely filed the relevant federal tax return(s) present?

Yes No N/A Page

7. Is there a short statement of facts with respect to the conversion? For example, if the ruling request involves a conversion attempted in 1998, there should be a statement of the facts that includes a representation of why the due date(s) found in Announcement 99-57 and Announcement 99-104 were not met.

Yes No N/A Page

8. If the taxpayer recharacterized his/her Roth IRA to a traditional IRA prior to submitting a request for § 9100 relief, are the date(s) of the recharacterization(s), IRA(s) present? name(s) of trustees and/or custodians, and the identification numbers of the traditional

Yes No N/A Page

9. Does the request include the type of contribution (i.e., regular or conversion) and amount of the contribution being recharacterized?

# APPENDIX D Additional Checklist for Government Pick-Up Plan Ruling Requests

In order to assist EP Technical in processing a ruling request involving government pick-up plans, in addition to the items
in Appendix B please check the following list.

Yes No N/A Page

1. Is the plan qualified under § 401(a) of the Code? (Evidence of qualification or representation that the plan is qualified.)

Yes No N/A Page

2. 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.

Yes No N/A Page

3. Is there specific information regarding who are the eligible participants?

Yes No N/A Page

4. 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.

Yes No N/A Page

5. Does the plan provide that the participants do not have the election to opt in and/or out of the plan?

Yes No N/A Page

6. 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?

Yes No N/A Page

7. 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.

## Appendix E Additional Checklist for Church Plan Ruling Requests

In order to assist EP Technical in processing a church plan ruling request, in addition to the items in Appendix B, please
check the following list.

Yes No N/A Page

1. 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 officers 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.

Yes No N/A Page

2. 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?

Yes No N/A Page

3. 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?

Yes No N/A Page

4. Does the ruling request clearly state who are the eligible participants and the name of the employer of these eligible participants?

Yes No N/A Page

5. 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?

Yes No N/A Page

6. 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.

Yes No N/A Page

7. 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.

Yes No N/A Page

8. Is the composition of the committee stated?

Yes No N/A Page

9. 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).

Yes No N/A Page

10. Does the ruling request include a copy of the notice?

26 CFR 601.201: Rulings and determination letters.

### Rev. Proc. 2014-5

TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

172

SECTION 2. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REV. PROC. 2013-5?

172

SECTION 3. WHAT IS A TECHNICAL ADVICE MEMORANDUM?

172

SECTION 4. ON WHAT ISSUES MAY OR MUST TAMs BE REQUESTED UNDER THIS PROCEDURE?

173

.01 Issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division

173

.02 Farmers' cooperatives

173

.03 Basis for requesting technical advice

173

.04 Areas of mandatory technical advice

173

.05 Basis for requests by EO Determinations

173

SECTION 5. ON WHAT ISSUES MUST TAMs BE REQUESTED UNDER DIFFERENT PROCEDURES?

174

.01 Matters (other than farmers' cooperatives) under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions &amp; Products), the Associate Chief Counsel (Income Tax &amp; Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs &amp; Special Industries), the Division Counsel/Associate Chief Counsel TE/GE), and the Associate Chief Counsel (Procedure &amp; Administration)

174

.02 Alcohol, tobacco, and firearms taxes

174

.03 Excise taxes

174

SECTION 6. MAY A TAM UNDER § 301.9100-1 BE REQUESTED DURING THE COURSE OF AN EXAMINATION?

174

.01 A § 301.9100-1 request is a letter ruling request

174

.02 Statute of limitations

174

.03 Address to send a § 301.9100-1 request

175

.04 If the return is being examined or considered by an appeals office or a federal court, the taxpayer must notify Employee Plans Technical or Exempt Organizations Technical who will notify the

175

Employee Plans Examinations Area manager or the Exempt Organizations Examinations Area manager, the appeals office or government counsel

SECTION 7. WHO IS RESPONSIBLE FOR REQUESTING TAMs?

175

.01 An Employee Plans Examinations Area manager, Exempt Organizations Examinations Area manager, Employee Plans Determinations manager, Exempt Organizations Determinations manager, or Appeals Area Director, determines whether to request a TAM

175

.02 Taxpayer may ask that issue be referred for a TAM

176

SECTION 8. WHEN SHOULD A TAM BE REQUESTED?

176

.01 Uniformity of position lacking

176

.02 When can a TAM be requested

176

.03 At the earliest possible stage

176

.04 Coordination with Department of Labor

176

SECTION 9. HOW ARE PRE-SUBMISSION CONFERENCES SCHEDULED?

176

.01 Pre-submission conference generally is permitted when a request for a TAM is likely and all parties agree to request the conference

176

.02 Purpose of pre-submission conference

177

.03 Request for pre-submission conference must be submitted in writing by the EP or EO Examinations or the EP or EO Determinations or the appeals office

177

.04 Group will contact the EP or EO Examinations or the EP or EO Determinations or the appeals office to arrange the pre-submission conference

177

.05 Pre-submission conference generally held by telephone

177

.06 Certain information required to be submitted to EP or EO Technical prior to the pre-submission conference

177

.07 Manner of submitting pre-submission materials

178

.08 Pre-submission conference may not be recorded

178

.09 Discussion of substantive issues is not binding on the Service

178

SECTION 10. WHAT MUST BE INCLUDED IN THE REQUEST FOR A TAM?

178

.01 Statement of issues, facts, law, and arguments

178

.02 General provisions of §§ 6104 and 6110 of the Internal Revenue Code

179

.03 Application of § 6104

179

.04 Statement identifying information to be deleted from public inspection

179

.05 Transmittal Form 5565, Request for Technical Advice-EP/EO

179

.06 Power of attorney

180

SECTION 11. HOW ARE REQUESTS HANDLED?

180

.01 Taxpayer notified

180

.02 Consider whether published guidance is appropriate

180

.03 Conference offered

180

.04 If the taxpayer disagrees with the Service's statement of facts

180

.05 If the Service disagrees with the taxpayer's statement of facts

181

.06 If the taxpayer has not submitted the required deletions statement

181

.07 Criminal or civil fraud cases

182

SECTION 12. HOW DOES A TAXPAYER APPEAL AN EP OR EO MANAGER'S OR AN APPEALS AREA

DIRECTOR'S DECISION NOT TO SEEK A TAM?

182

.01 Taxpayer notified of decision not to seek a TAM

182

.02 Taxpayer may request review of decision not to seek a TAM

182

.03 EP or EO Examinations Area manager or EP or EO Determinations manager or the applicable appeals office determines whether a TAM will be sought

182

.04 Manager or area director's decision may be reviewed but not appealed

183

SECTION 13. HOW ARE REQUESTS FOR TAMs WITHDRAWN?

183

.01 Taxpayer notified

183

.02 EP or EO Technical may provide views

183

SECTION 14. HOW ARE CONFERENCES SCHEDULED?

184

.01 If requested, offered to the taxpayer when adverse TAM proposed

184

.02 Timeline

184

.03 21-day period may be extended if justified and approved

184

.04 Denial of extension cannot be appealed

184

.05 Entitled to one conference of right

184

.06 Conference may not be recorded

185

.07 Conference may be delayed to address a request for relief under § 7805(b)

185

.08 Service makes tentative recommendations

185

.09 Additional conferences may be offered

185

.10 Additional information submitted after the conference

185

.11 Normally held by telephone

186

SECTION 15. HOW IS STATUS OF REQUEST OBTAINED?

186

.01 Taxpayer or the taxpayer's representative may request status from the EP or EO Examinations or the EP or EO Determinations or the appeals office

186

.02 EP or EO Technical will give status updates to the EP or EO Examinations Area manager or the EP or EO Determinations office or the applicable Appeals Area Director

186

SECTION 16. HOW DOES EP OR EO TECHNICAL PREPARE THE TAM?

187

.01 Delegates authority to group managers

187

.02 Determines whether request has been properly made

187

.03 Contacts the EP or EO Examinations or the EP or EO Determinations or the appeals office to discuss issues

187

.04 Informs the EP or EO Examinations or the EP or EO Determinations or the appeals office if any matters in the request have been referred to another group or office

187

.05 Informs the EP or EO Examinations or the EP or EO Determinations or the appeals office if additional information is needed

187

.06 Informs the EP or EO Examinations or the EP or EO Determinations or the appeals office of the tentative conclusion

187

.07 If a tentative conclusion has not been reached, gives date estimated for tentative conclusion

187

.08 Advises the EP or EO Examinations or the EP or EO Determinations or the appeals office that tentative conclusion is not final

188

.09 Advises the EP or EO Examinations or the EP or EO Determinations or the appeals office of final conclusions

188

.10 If needed, requests additional information

188

.11 Requests taxpayer to send additional information to EP or EO Technical and a copy to the EP or EO Examinations or the EP or EO Determinations or the appeals office

189

.12 Informs the taxpayer when requested deletions will not be made

189

.13 Prepares reply in two parts

189

.14 Routes replies to appropriate office

190

SECTION 17. HOW DOES EP OR EO EXAMINATIONS OR EP OR EO DETERMINATIONS OR AN APPEALS OFFICE USE THE TAM?

190

.01 Generally applies advice in processing the taxpayer's case

190

.02 Reconsideration

191

.03 Discussion with the taxpayer

191

.04 Gives copy to the taxpayer

191

.05 Taxpayer may protest deletions not made

191

.06 When no copy is given to the taxpayer

192

SECTION 18. WHAT IS THE EFFECT OF A TAM?

192

.01 Applies only to the taxpayer for whom TAM was requested

192

.02 Usually applies retroactively

192

.03 Generally applied retroactively to modify or revoke prior TAM.

192

.04 Applies to continuing action or series of actions until specifically withdrawn, modified or revoked.

192

.05 Applies to continuing action or series of actions until material facts change

192

.06 Does not apply retroactively under certain conditions

192

SECTION 19. HOW MAY RETROACTIVE EFFECT BE LIMITED?

193

.01 Commissioner has discretionary authority under § 7805(b)

193

.02 Taxpayer may request Commissioner to exercise authority

193

.03 Form of request to limit retroactivity-before an examination

193

.04 Form of request to limit retroactivity-during course of examination

193

.05 Form of request to limit retroactivity-technical advice that does not modify or revoke prior memorandum

193

.06 Taxpayer's right to a conference

193

.07 Exhaustion of administrative remedies-employee plans determination letter requests.

194

.08 Exhaustion of administrative remedies-exempt organization matters

194

SECTION 20. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?

194

SECTION 21. EFFECTIVE DATE

194

SECTION 22. PAPERWORK REDUCTION ACT

194

INDEX

196

# SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

.01 This revenue procedure explains when and how Employee Plans Technical or Exempt
Organizations Technical issue technical advice memoranda (TAMs) to an Employee Plans
(EP) Examinations Area manager, an Exempt Organizations (EO) Examinations Area man-
ager, an Employee Plans (EP) Determinations manager, an Exempt Organizations (EO)
Determinations manager, or an Appeals Area Director in the employee plans areas (including
actuarial matters) and exempt organizations areas. It also explains the rights a taxpayer has
when an EP or EO Examinations Area manager, an EP or EO Determinations manager, or an
Appeals Area Director requests a TAM regarding a tax matter. Similarly, this revenue
procedure may be used by another Operating Division of the Service involved in an exami-
nation where EP Technical does not have audit jurisdiction but has interpretive jurisdiction as
enumerated in section 6.02 of Rev. Proc. 2014-4 of this Bulletin.

.02 Although taxpayer participation during all stages of the process is preferred, it is not
required in order to request technical advice.

SECTION 2. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 2013-5?

SECTION 3. WHAT IS
THE DEFINITION OF
TECHNICAL ADVICE?

This revenue procedure is a general update of Rev. Proc. 2013-5, 2013-1 I.R.B. 170, which
contains the general procedures for technical advice requests for matters within the jurisdic-
tion of the Commissioner, Tax Exempt and Government Entities Division.

No significant changes have been made to Rev. Proc. 2013-5.

"Technical advice" means advice or guidance in the form of a memorandum furnished by
the Employee Plans Technical or Exempt Organizations Technical office, (hereinafter referred
to as "EP or EO Technical"), upon the request of an EP or EO Examinations Area manager,
an EP or EO Determinations manager or an Appeals Area Director submitted in accordance
with the provisions of this revenue procedure in response to any technical or procedural
question that develops during any proceeding on the interpretation and proper application of
tax law, tax treaties, regulations, revenue rulings, notices or other precedents published by the
Service to a specific set of facts. (The references in this revenue procedure to an Appeals Area
Director or appeals office include, when appropriate, an Appeals Area Director, an Appeals
Domestic Operations Director, or an Appeals Team Manager (in the case of an appeals office)
and include in employee plans matters another Operating Division of the Service described in
the last sentence of section 1.01 above.) Such proceedings include: (1) the examination of a
taxpayer's return; (2) consideration of a taxpayer's claim for refund or credit; (3) a taxpayer's
request for a determination letter; (4) any other matter involving a specific taxpayer under the
jurisdiction of EP or EO Examinations, EP or EO Determinations, or an appeals office; or (5)
processing and considering nondocketed cases of a taxpayer in an appeals office. However,
they do not include cases in which the issue in the case is in a docketed case for any year.

For purposes of TAMs, the term "taxpayer" includes all persons subject to any provision of
the Internal Revenue Code (including tax-exempt entities such as governmental units which
issue federally subsidized bonds such as tax-exempt bonds, tax credit bonds or build America
bonds), and when appropriate, their representatives. However, the instructions and the pro-
visions of this revenue procedure do not apply to requests for TAMs involving any matter
pertaining to federally subsidized bonds such as tax-exempt bonds, tax credit bonds or build
America bonds or to § 457 plans maintained by state or local governments or tax-exempt
organizations or to mortgage credit certificates. Instead, in those instances the procedures
under Rev. Proc. 2014-2 of this Bulletin must be followed.

TAMs help Service personnel resolve complex issues and help establish and maintain
consistent holdings throughout the Internal Revenue Service. An EP or EO Examinations, an
EP or EO Determinations or an appeals office may raise an issue in any tax period, even
though technical advice may have been requested and furnished for the same or similar issue
for another tax period.

Technical advice does not include oral or written legal advice furnished to the EP or EO
Examinations or the EP or EO Determinations or the appeals office, other than advice
furnished pursuant to this revenue procedure. In accordance with section 12.01 of this revenue

procedure, a taxpayer's request for referral of an issue to the Service for technical advice will
not be denied merely because EP or EO Technical has already provided legal advice, other
than advice furnished pursuant to this revenue procedure, to the EP or EO Examinations or the
EP or EO Determinations or the appeals office on the matter.

Although taxpayer participation during all stages of the process is preferred, generally, it is
not required in order to request a TAM.

## SECTION 4. ON WHAT ISSUES MAY OR MUST TAMS BE REQUESTED UNDER THIS PROCEDURE?

Issues under the jurisdiction of
the Commissioner, Tax Exempt
.01 Generally, the instructions of this revenue procedure apply to requests for TAMs on any
issue under the jurisdiction of the Commissioner, Tax Exempt and Government Entities
and Government Entities Division Division.

Farmers' cooperatives

.02 If an EP or EO Examinations, an EP or EO Determinations, an appeals office or a taxpayer requests technical advice on a determination letter under § 521 of the Code, the procedures under this revenue procedure, Rev. Proc. 2014-9, the next Bulletin, as well as § 601.201(n) of the Statement of Procedural Rules (26 CFR § 601.201(n)), must be followed.

Basis for requesting TAMs

.03 Requests for TAMs are encouraged on any technical or procedural questions arising in connection with any case of the type described in section 3 at any stage of the proceedings in an EP or EO Examinations, an EP or EO Determinations or an appeals office case that cannot be resolved on the basis of law, regulations, or a clearly applicable revenue ruling or other published precedent.

Areas of mandatory technical advice

.04 Requests for § 7805(b) relief are mandatory TAMs with respect to all exempt organi- zations and employee plans matters.

Regarding exempt organizations matters, EO Examinations, EO Determinations and ap- peals offices are required to request a TAM on their exempt organization cases concerning qualification for exemption or foundation status for which there is no published precedent or for which there is reason to believe that non-uniformity exists. (Exemption application cases handled in EO Technical in accordance with Rev. Proc. 72-5, 1972-1 C.B. 709, Rev. Proc. 80-27, 1980-1 C.B. 677, or Rev. Proc. 2014-9, next Bulletin, are not covered by this provision.) Requests for abatements of more than $200,000 in all Exempt Organizations matters are mandatory TAMs. A request for a TAM is not required if the Director, EO Examinations proposes to revoke or modify a letter recognizing tax-exempt status issued by the Service. Regarding employee plans matters, a request for a TAM is required in cases concerning (1) proposed adverse or proposed revocation letters on collectively-bargained plans, (2) plans for which the Service is proposing to issue a revocation letter because of certain fiduciary actions that violate the exclusive benefit rule of § 401(a) of the Code and are subject to Part 4 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, Pub. L. No. 93-406, 1974-3 C.B. 1, 43, or (3) amendments to defined contribution plans pursuant to Rev. Proc. 2004-15, 2004-1 C.B. 490, in connection with a waiver of the minimum funding standard and a request for a determination letter. See section 15 of Rev. Proc. 2014-6 of this Bulletin, and section 3.04 of Rev. Proc. 2004-15, 2004-1 C.B. 490.

Basis for requests by EO Determinations

.05 The circumstances in which EO Determinations should seek Technical Advice in the course of processing applications for tax exemption are described in Revenue Procedure 2014-9, next Bulletin, sections 5.03, 5.04, and 9.02. Technical Advice may also be requested by EO Determinations in connection with requests for determination letters where no pending application for tax exemption is involved. For a listing of these determination letters, see Revenue Procedure 2014-4, section 7.04, except (1), (2), and (6).

# SECTION 5. ON WHAT ISSUES MUST TAMS BE REQUESTED UNDER DIFFERENT PROCEDURES?

Matters (other than farmers'
cooperatives) under the
jurisdiction of the Associate
Chief Counsel (Corporate), the
Associate Chief Counsel
(Financial Institutions &
Products), the Associate Chief
Counsel (Income Tax &
Accounting), the Associate Chief
Counsel (International) the
Associate Chief Counsel
(Passthroughs & Special
Industries), the Division Counsel/
Associate Chief Counsel (TE/GE),
and the Associate Chief Counsel
(Procedure & Administration)

.01 All procedures for obtaining TAMs on issues (other than farmers' cooperatives)
under the interpretive jurisdiction of the Associate Chief Counsel (Corporate), the Associate
Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax
& Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel
(Passthroughs & Special Industries), or the Division Counsel/Associate Chief Counsel (TE/
GE), and on certain issues under the jurisdiction of the Associate Chief Counsel (Procedure
& Administration), including any matter pertaining to (1) tax-exempt bonds or mortgage credit
certificates, (2) deferred compensation plans under § 457, (3) § 526 of the Code (shipowners'
protection and indemnity associations), (4) § 528 (certain homeowners' associations), (5)
Indian tribal governments, (6) federal, state or local governments, (7) issues involving the
interpretation or application of the federal income tax laws and income tax treaties relating to
international transactions, and (8) sales of stock to employee stock ownership plans or eligible
worker-owned cooperatives under § 1042 are contained in Rev. Proc. 2014-2.

Alcohol, tobacco, and firearms
taxes

.02 The procedures for obtaining a TAM specifically applicable to federal alcohol,
tobacco, and firearms taxes under subtitle E of the Code are currently under the jurisdiction
of the Alcohol and Tobacco Tax and Trade Bureau within the Treasury Department.

Excise taxes

.03 A TAM regarding excise taxes (other than excise taxes imposed under Chapters 41,
42 and 43 of the Code), and employment taxes that employee plans and exempt organizations
are subject to, is set forth in Rev. Proc. 2014-2.

# SECTION 6. MAY TAM UNDER § 301.9100-1 BE REQUESTED DURING THE COURSE OF AN EXAMINATION?

A § 301.9100-1 request is a letter
ruling request

.01 Except with regard to exemption application matters involving §§ 505(c) and 508, a
request for an extension of time for making an election or other application for relief under
§ 301.9100-1 of the Procedure and Administration Regulations is not a request for a TAM;
instead, the request is submitted as a letter ruling request even if the request is submitted after
the examination of the taxpayer's return has begun or after the issues in the return are being
considered by an appeals office or a federal court. Therefore, a § 301.9100-1 request should
be submitted pursuant to Rev. Proc. 2014-4 of this Bulletin (including the payment of the
applicable user fee listed in section 6 of Rev. Proc. 2014-8).

Statute of limitations

.02 The running of any applicable period of limitations is not suspended for the period
during which a § 301.9100-1 request has been filed. See § 301.9100-3(d)(2). If the period of
limitations on an assessment under § 6501(a) for the taxable year in which an election should
have been made, or any taxable year that would have been affected by the election had it been
timely made, will expire before receipt of a § 301.9100-1 letter ruling, the Service ordinarily
will not issue a § 301.9100-1 ruling. See § 301.9100-3(c)(1)(ii). Therefore, the taxpayer
must secure a consent under § 6501(c)(4) to extend the period of limitations on assess-
ment. Note that the filing of a protective claim for refund under § 6511 does not extend
the period of limitations on assessment. If § 301.9100-1 relief is granted, the Service may
require the taxpayer to consent to an extension of the period of limitations for assessment.
See § 301.9100-3(d)(2).

Address to send a § 301.9100-1
request

.03 Requests made under § 301.9100-1, pursuant to Rev. Proc. 2014-4, together with the
appropriate user fee, must be submitted to the Internal Revenue Service by the taxpayer and
addressed as follows: Requests involving employee plans matters:

Internal Revenue Service
Commissioner, Tax Exempt and Government Entities
Attn: SE:T:EP:RA
P.O. Box 27063
McPherson Station
Washington, DC 20038

Requests involving exempt organization matters:

Internal Revenue Service
Commissioner, Tax Exempt and Government Entities
Attn: SE:T:EO:RA
P.O. Box 27720
McPherson Station
Washington, DC 20038

A § 301.9100-1 request may also be hand delivered between the hours of 8:30 a.m. and
4:00 p.m. where a receipt will be given at the Courier's Desk. In each instance, the package
should be marked RULING REQUEST SUBMISSION. See Rev. Proc. 2014-8 for the
appropriate user fee. Deliver to:

Courier's Desk
Internal Revenue Service
Attn: [for Employee Plans, write "SE:T:EP:RA"
for Exempt Organizations, write "SE:T:EO:RA"]
1111 Constitution Avenue, N.W. - NCA
Washington, D.C. 20224

.04 If the taxpayer's return for the taxable year in which an election should have been
made or any taxable year that would have been affected by the election had it been timely
made is being examined by EP or EO Examinations or the issues in the return are being
considered by an appeals office or a federal court, the taxpayer must notify EP or EO
Technical. See § 301.9100-3(e)(4)(i) and section 6.04 of Rev. Proc. 2014-4. EP or EO
Technical will notify the appropriate EP or EO Examinations Area manager or Appeals Area
Director or government counsel considering the return that a request for § 301.9100-1 relief
has been submitted. The EP or EO specialist, appeals officer or government counsel is not
authorized to deny consideration of a request for § 301.9100-1 relief. The letter ruling will
be mailed to the taxpayer and a copy will be sent to the appropriate EP or EO Examinations
Area manager, or Appeals Area Director or government counsel.

If return is being examined
or considered by an appeals
office or a federal court, the
taxpayer must notify EP or EO
Technical who will notify the
EP or EO Examinations Area
manager, Appeals Area Director
or government counsel

# SECTION 7. WHO IS RESPONSIBLE FOR REQUESTING TAMs?

EP or EO Examinations Area
manager or EP or EO
Determinations manager or
Appeals Area Director determines
whether to request the advice

.01 The EP or EO Examinations Area manager, the EP or EO Determinations manager
or the Appeals Area Director determines whether to request a TAM on an issue. Each request
must be submitted through proper channels and signed by a person who is authorized to sign
for the EP or EO Examinations Area manager, the EP or EO Determinations manager or the
Appeals Area Director. The mandatory technical advice described in section 4.04 of this
revenue procedure, for cases concerning amendments to defined contribution plans in con-
nection with a waiver of the minimum funding standard and a request for a determination
letter, is treated as if it had been a request for technical advice submitted by the EP
Determinations manager. See section 15 of Rev. Proc. 2014-6 and section 3.04 of Rev. Proc.
2004-15 for the procedural rules applicable to this particular mandatory technical advice.

Sec. 7.01
January 2, 2014

Taxpayer may ask that issue be referred for TAM

.02 While a case is under the jurisdiction of EP or EO Examinations, EP or EO Determinations, or an Appeals Area Director, a taxpayer may request that an issue be referred to the EP or EO Technical office for a TAM.

SECTION 8. WHEN SHOULD A TAM BE REQUESTED?

Uniformity of position lacking

.01 A TAM should be requested when there is a lack of uniformity regarding the disposition of an issue or when an issue is unusual or complex enough to warrant consider- ation by EP or EO Technical.

When can a TAM be requested

.02 Generally, except as provided in section 1.01, the provisions of this revenue procedure apply only to a case under the jurisdiction of EP or EO Examinations, EP or EO Determi- nations or an Appeals Area Director. A TAM may also be requested on issues considered in a prior appeals disposition, not based on mutual concessions for the same tax period of the same taxpayer, if the appeals office that had the case concurs in the request.

(1) EP or EO Examinations or EP or EO Determinations may not request a TAM on an issue if an appeals office is currently considering an identical issue of the same taxpayer (or of a related taxpayer within the meaning of § 267 or an affiliated group of which the taxpayer is also a member within the meaning of § 1504). (2) A case remains under the jurisdiction of EP or EO Examinations or EP or EO Determinations even though an appeals office has the identical issue under consideration in the case of another taxpayer (not related within the meaning of § 267 or § 1504) in an entirely different transaction. With respect to the same taxpayer or the same transaction, when the issue is under the jurisdiction of an appeals office, and the applicability of more than one kind of federal tax is dependent upon the resolution of that issue, EP or EO Examinations or EP or EO Determinations may not request a TAM on the applicability of any of the taxes involved. (3) EP or EO Examinations or EP or EO Determinations or an Appeals Area Director, also may not request a TAM on an issue if the same issue of the same taxpayer (or of a related taxpayer within the meaning of § 267 or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504) is in a docketed case for the same taxpayer (or for a related taxpayer or a member of an affiliated group of which the taxpayer is also a member) for any taxable year.

At the earliest possible stage

.03 Once an issue is identified, all requests for a TAM should be made at the earliest possible stage in the proceeding. The fact that the issue is raised late in the examination, determination or appeals process should not influence, however, EP or EO Examinations', EP or EO Determinations' or an Appeals Area Director's, decision to request a TAM.

Coordination with Department of Labor

.04 If EP Examinations requests technical advice from EP Technical for a case with either an unagreed prohibited transaction, as defined in § 4975(c)(1) and ERISA 406(a), or a violation of the exclusive benefit rule of § 401(a)(2) or ERISA 404(a)(1)(A), EP Examinations must submit a Form 6212-B to the Department of Labor prior to submitting the request for technical advice to EP Technical.

## SECTION 9. HOW ARE PRE- SUBMISSION CONFERENCES SCHEDULED?

Pre-submission conference
generally is permitted when a
request for TAM is likely and all
parties agree to request the
conference

.01 In an effort to promote expeditious processing of requests for a TAM, EP or EO
Technical generally will discuss the issue(s) with the EP or EO Examinations or the EP or EO
Determinations or the appeals office and the taxpayer prior to the time any request for
technical advice is formally submitted to EP or EO Technical. In all cases, other than
mandatory TAMs which are described in section 4.04, a pre-submission conference is
mandatory.

Sec. 9.01
January 2, 2014

A request for a pre-submission conference should be made, however, only after the EP or
EO Examinations or the EP or EO Determinations or the appeals office determines that it will
likely request a TAM.

If the request for a TAM will involve more than one function, representatives from each
function involved must participate in the pre-submission conference.

.02 A pre-submission conference is intended to facilitate agreement between the parties as
to the appropriate scope of the request for a TAM or any collateral issues that either should
or should not be included in the request for a TAM, and any other substantive or procedural
considerations that will allow EP or EO Technical to provide the parties with a TAM as
expeditiously as possible.

A pre-submission conference is not intended to create an alternate procedure for determin-
ing the merits of the substantive positions advocated by the EP or EO Examinations or the EP
or EO Determinations or the appeals office or by the taxpayer. Rather, the conference is
intended only to facilitate the overall process.

.03 A request for a pre-submission conference must be submitted in writing by the EP or
EO Examinations or the EP or EO Determinations or the appeals office. The request should
identify the office expected to have jurisdiction over the request for a TAM. The request
should include a brief explanation of the primary issue so that an assignment to the appropriate
group can be made.

Group will contact the EP or
EO Examinations or the EP or
EO Determinations or the
appeals office to arrange
the pre-submission conference

.04 Within 5 working days after it receives the request, the group assigned responsibility
for conducting the pre-submission conference will contact the EP or EO Examinations or the
EP or EO Determinations or the appeals office to arrange a mutually convenient time for the
parties to meet (generally by telephone) in the EP or EO Technical office. The conference
generally should be held within 30 calendar days after the EP or EO Examinations or the EP
or EO Determinations or the appeals office is contacted. The EP or EO Examinations or the
EP or EO Determinations or the appeals office will be responsible for coordinating with the
taxpayer as well as with any other Service personnel whose attendance the EP or EO
Examinations or the EP or EO Determinations or the appeals office believes would be
appropriate.

Pre-submission conference
generally held by telephone

.05 Generally, pre-submission conferences for TAMs are held by telephone with EP or
EO Technical unless the parties specifically request that the conference be held in person.

Certain information required to
be submitted to EP or EO
Technical prior to the pre-
submission conference

.06 At least 10 working days before the scheduled pre-submission conference, the EP or EO
Examinations or the EP or EO Determinations or the appeals office and the taxpayer should
submit to EP or EO Technical:

(1) a statement of the pertinent facts (including any facts in dispute);

(2) a statement of the issues that the parties would like to discuss; and

(3) any legal analysis, authorities, or background documents that the parties believe would
facilitate EP or EO Technical's understanding of the issues to be discussed at the conference.
The legal analysis provided for the pre-submission conference need not be as fully developed
as the analysis that ultimately will accompany the request for a TAM. See section 10 of this
revenue procedure. However, it should allow EP or EO Technical to become reasonably
informed regarding the subject matter of the conference prior to the meeting. The EP or EO
Examinations or the EP or EO Determinations or the appeals office or the taxpayer should
ensure that the EP or EO Technical office receives a copy of any required power of attorney,
on Form 2848, Power of Attorney and Declaration of Representative.

Sec. 9.06
January 2, 2014

Purpose of pre-submission
conference

Request for pre-submission
conference must be submitted in
writing by the EP or EO
Examinations or the EP or EO
Determinations or the appeals
office

Manner of submitting pre- submission materials

.07 The pre-submission materials must be submitted electronically. In order to obtain the protection of taxpayer information offered by the Service's Intranet "firewall," the pre- submission materials must be electronically transmitted by the Service office assigned to the request.

To the extent that supporting materials cannot be submitted electronically, such materials should be sent by fax or by express mail or private delivery service to the tax law specialist or actuary in the Service office assigned to the request. In such cases, the appropriate provisions of section 10.05 should be followed.

Pre-submission conference may not be recorded

.08 Because pre-submission conference procedures are informal, no recording may be made by any party.

Discussion of substantive issues is not binding on the Service SECTION 10. WHAT MUST BE INCLUDED IN THE REQUEST FOR A TAM?

.09 Any discussion of substantive issues at a pre-submission conference is advisory only, is not binding on the Service, and cannot be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b). See also Rev. Proc. 2014-4, section 3.08.

Statement of issues, facts, law, and arguments

.01 Whether initiated by the taxpayer or by an EP or EO Examinations or an EP or EO Determinations or an appeals office, a request for a TAM must include the facts and the issues for which the TAM is requested, and a written statement that clearly sets forth the applicable law and the arguments in support of both the Service's and the taxpayer's positions on the issue or issues.

Taxpayer must submit statement if the taxpayer initiates request for a TAM

(1) If the taxpayer initiates the request for a TAM, the taxpayer must submit to the EP or EO specialist or appeals office, at the time the taxpayer initiates the request, a written statement:

(a) stating the facts and the issues;

(b) explaining the taxpayer's position;

(c) discussing any relevant statutory provisions, tax treaties, court decisions, regulations, revenue rulings, revenue procedures, notices, or any other authority supporting the taxpayer's position; and

(d) stating the reasons for requesting technical advice.

If the EP or EO specialist or the appeals office determines that a TAM will be requested, the taxpayer's statement will be forwarded to EP or EO Technical with the request for the TAM.

Taxpayer is encouraged to submit statement if Service initiates request for a TAM

(2) If the request for a TAM is initiated by an EP or EO Examinations office or by an EP or EO Determinations office or by an appeals office, the taxpayer is encouraged to submit the written statement described in section 10.01(1) of this revenue procedure. If the taxpayer's statement is received after the request for the TAM has been forwarded to EP or EO Technical, the statement will be forwarded to EP or EO Technical for association with the TAM.

Statement of authorities contrary to taxpayer's position

(3) Whether the request for a TAM is initiated by the taxpayer or by an EP or EO Examinations office or by an EP or EO Determinations office or by an appeals office, the taxpayer is encouraged to comment on any legislation, tax treaties, regulations, revenue rulings, revenue procedures, or court decisions contrary to the taxpayer's position. If the taxpayer determines that there are no contrary authorities, a statement to this effect would be helpful. If the taxpayer does not furnish either contrary authorities or a statement that none exists, the Service, in complex cases or those presenting difficult or novel issues, may request submission of contrary authorities or a statement that none exists.

General provisions of §§ 6104
and 6110

.02 Generally, § 6104(a)(1)(B) provides that an application filed with respect to: (1) the
qualification of a pension, profit-sharing, or stock bonus plan under § 401(a) or § 403(a) or an
individual retirement arrangement under § 408(a) or § 408(b) will be open to public inspection
pursuant to regulations as will (2) any application filed for an exemption from tax under
§ 501(a) of an organization forming part of a plan or account described above. Generally,
§ 6110(a) provides that except as provided otherwise, written determinations (defined in
§ 6110(b)(1) as rulings, determination letters, technical advice memorandums and Chief
Counsel advice) and any related background file document will be open to public inspection
pursuant to regulations.

Application of § 6104

.03 The requirements for submitting statements and other materials or proposed deletions
in TAMs before public inspection is allowed do not apply to requests for any documents to
the extent § 6104 applies.

## Statement identifying information to be deleted from public inspection

.04 The text of a TAM subject to § 6110(a) may be open to public inspection. The Service
deletes certain information from the text before it is made available for inspection. To help the
Service make the deletions required by § 6110(c), the taxpayer must provide a statement
indicating the deletions desired ("deletions statement"). If the taxpayer does not submit the
deletions statement, the Service will follow the procedures in section 11.06 of this revenue
procedure.

A taxpayer who wants only names, addresses, and identifying numbers deleted should state
this in the deletions statement. If the taxpayer wants more information deleted, the deletions
statement must be accompanied by a copy of the TAM request and supporting documents on
which the taxpayer should bracket the material to be deleted. In addition, the deletions
statement must (1) indicate the statutory basis, under § 6110(c) for each proposed deletion; (2)
must be made in a separate document and not in the request for a TAM; and (3) must be signed
and dated by the taxpayer or the taxpayer's authorized representative (a stamped signature or
a faxed signature is not permitted).

The taxpayer may submit additional deletions statements before the TAM is issued, and the
taxpayer should follow these same procedures to propose deletions from any additional
information submitted after the initial request for a TAM. An additional deletion statement,
however, is not required with each submission of additional information.

Transmittal Form 5565, Request
for Technical Advice - EP/EO

.05 The EP or EO Examinations or the EP or EO Determinations or the appeals office
(including another Operating Division of the Service involved in an examination where EP
Technical does not have audit jurisdiction but has interpretive jurisdiction as enumerated in
section 6.02 of Rev. Proc. 2014-4) should use Form 5565, Request for Technical Advice -
EP/EO, for transmitting a request for technical advice to EP or EO Technical.

The appropriate office of the Service must submit electronically, the Form 5565 for a TAM
request to William.Hulteng@irs.gov for EP matters and tege.eo.ra@irs.gov for EO matters. To
the extent feasible, the accompanying documents should be submitted to the same e-mail
address (followed by a hard copy if requested by the assigned group). See section 9.07 for
additional information.

The applicable office should submit additional documents that are not available in elec-
tronic form by fax to 202-317-8810 for EP matters, or 202-317-8585 for EO matters, or by
express mail or private delivery service to the appropriate address listed below.

Whenever possible, all documents should contain the case number and name of the tax
law specialist or actuary assigned to the pre-submission conference for the TAM request.
Documents that are being sent in hardcopy should be sent on the business day before the
day that the request for a TAM is submitted via e-mail, so as not to delay the process. It
is anticipated that most, if not all, such documents will be identified during the pre-
submission conference.

The field and the taxpayer are encouraged to provide electronic versions of a proposed
TAM containing the taxpayer's deletions and legends for EP Technical's or EO Technical's
use.

Address to send requests from EP or EO Examinations or EP or EO Determinations offices or another Operating Division

Employee Plans Internal Revenue Service Attn: SE:T:EP:RA

1111 Constitution Ave., NW-NCA Washington, DC 20224

Exempt Organizations Internal Revenue Service Attn: SE:T:EO:RA 1111 Constitution Ave., NW-NCA Washington, DC 20224

If a request is from an Appeals office and is within EP/EO's jurisdiction, the field office must send the request for a TAM to one of the above offices with an electronic copy (no paper copy to follow) to the Appeals TAM Coordinator at the "*AP Tax Policy &amp; Procedure" email address - Attention: TAM Coordinator - in the subject line.

Power of attorney

.06 Any authorized representative, as described in section 9.02 of Rev. Proc. 2014-4, whether or not enrolled to practice, must comply with Treasury Department Circular No. 230, as revised, and with the conference and practice requirements of the Statement of Procedural Rules (26 CFR part 601). A Form 2848, Power of Attorney and Declaration of Representative, must be used with regard to requests for a TAM under this revenue procedure. An original, a copy or a fax transmission of the power of attorney is acceptable so long as its authenticity is not reasonably disputed.

SECTION 11. HOW ARE REQUESTS HANDLED?

Taxpayer notified

.01 Regardless of whether the taxpayer or the Service initiates the request for a TAM, the EP or EO Examinations or the EP or EO Determinations or the appeals office: (1) will notify the taxpayer that the TAM is being requested; and (2) at or before the time the request is submitted to EP or EO Technical, will give to the taxpayer a copy of the arguments that are being provided to EP or EO Technical in support of its position. If the EP or EO specialist or appeals office initiates the request for a TAM, he or she will give to the taxpayer a copy of the statement of the pertinent facts and the issues proposed for submission to EP or EO Technical. This section 11.01 does not apply to a TAM described in section 11.07 of this revenue procedure.

Consider whether published guidance is appropriate

.02 Whenever the assigned reviewer suspects that general guidance should be published regarding the issue presented, the reviewer will notify the Manager, Technical who in turn will notify the Manager, Technical Guidance and Quality Assurance. The Manager, Technical Guidance and Quality Assurance will then determine if the issue meets publication standards. In general, except where policy issues and concerns regarding proper administration of the tax laws require otherwise, the TAM will be issued in advance of published guidance.

Conference offered

.03 When notifying the taxpayer that technical advice is being requested, the EP or EO specialist or appeals office will also tell the taxpayer about the right to a conference in EP or EO Technical if an adverse decision is indicated and will ask the taxpayer whether such a conference is desired.

If the taxpayer disagrees with the Service's statement of facts

.04 If the EP or EO specialist or appeals office initiates the request for a TAM, the taxpayer has 10 calendar days after receiving the statement of facts and specific issues to submit to that

specialist or office a written statement specifying any disagreement on the facts and issues. A
taxpayer who needs more than 10 calendar days must justify, in writing, the request for an
extension of time. The extension is subject to the approval of the EP or EO Examinations Area
manager or the EP or EO Determinations manager or the Appeals Area Director.

After receiving the taxpayer's statement of the areas of disagreement, every effort should
be made to reach agreement on the facts and the specific points at issue before the matter is
referred to EP or EO Technical. If an agreement cannot be reached, the EP or EO Examina-
tions or the EP or EO Determinations or the appeals office will notify the taxpayer in writing.
Within 10 calendar days after receiving the written notice, the taxpayer may submit a
statement of the taxpayer's understanding of the facts and the specific points at issue. A
taxpayer who needs more than 10 calendar days to prepare the statement of understanding
must justify, in writing, the request for an extension of time. The extension is subject to the
approval of the EP or EO Examinations Area manager or the EP or EO Determinations
manager or the Appeals Area Director. Both the statements of the taxpayer and the EP or EO
Examinations or EP or EO Determinations or appeals office will be forwarded to EP or EO
Technical with the request for a TAM.

When EP or EO Examinations or EP or EO Determinations or the Appeals Area Director
and the taxpayer cannot agree on the material facts and the request for a TAM does not involve
the issue of whether a letter ruling or determination letter should be modified or revoked, EP
or EO Technical, at its discretion, may refuse to provide technical advice. If EP or EO
Technical chooses to issue the TAM, it will base its advice on the facts provided by the EP
or EO Examinations or EP or EO Determinations or appeals office.

If a request for a TAM involves the issue of whether a letter ruling or determination letter
should be modified or revoked, EP or EO Technical will issue the TAM.

If the Service disagrees with the
taxpayer's statement of facts

.05 If the taxpayer initiates the action to request a TAM, and the taxpayer's statement of the
facts and issues is not wholly acceptable to the EP or EO Examinations or the EP or EO
Determinations or the appeals office, the Service will notify the taxpayer in writing of the
areas of disagreement. The taxpayer has 10 calendar days after receiving the written notice to
reply to it. A taxpayer who needs more than 10 calendar days must justify in writing the
request for an extension of time. The extension is subject to the approval of the EP or EO
Examinations Area manager, or the EP or EO Determinations manager or the Appeals Area
Director.

If an agreement cannot be reached, both the statements of the taxpayer and the EP or EO
Examinations office or the EP or EO Determinations office or appeals office will be forwarded
to EP or EO Technical with the request for a TAM. When the disagreement involves material
facts essential to the preliminary assessment of the case, the EP or EO Examinations Area
manager, the EP or EO Determinations manager or the Appeals Area Director may refuse to
refer a taxpayer initiated request for the TAM to EP or EO Technical.

If EP or EO Examinations or EP or EO Determinations or an Appeals Area Director submits
a case involving a disagreement of material facts, EP or EO Technical, at its discretion, may
refuse to provide the TAM. If EP or EO Technical chooses to issue the TAM, it will base its
advice on the facts provided by the EP or EO Examinations or the EP or EO Determinations
or the appeals office.

If the taxpayer has not submitted
the required deletions statement

.06 When the EP or EO Examinations or the EP or EO Determinations or the appeals office
initiates the request for a TAM, the taxpayer has 10 calendar days after receiving the statement
of facts and issues to be submitted to EP or EO Technical to provide the deletions statement
required under § 6110 if public inspection is permitted pursuant to § 6110 (see section 10.04
of this revenue procedure). In such a case, if the taxpayer does not submit the deletions
statement, the EP or EO Examinations or the EP or EO Determinations or the appeals office,
will tell the taxpayer that the statement is required.

When the taxpayer initiates the request for a TAM and does not submit with the request a
deletions statement as required by § 6110, EP or EO Examinations or EP or EO Determi-
nations or the Appeals Area Director will ask the taxpayer to submit the statement. If EP or
EO Examinations or EP or EO Determinations or the Appeals Area Director does not receive
the deletions statement within 10 calendar days after asking the taxpayer for it, EP or EO
Examinations or EP or EO Determinations or the Appeals Area Director may decline to
submit the request for the TAM.

However, if the EP or EO Examinations office or the EP or EO Determinations office or the
Appeals Area Director decides to request a TAM, whether initiated by the EP or EO
Examinations office or the EP or EO Determinations office or the appeals office or by the
taxpayer, in a case in which the taxpayer has not submitted the deletions statement, EP or EO
Technical will make those deletions that the Commissioner of Internal Revenue determines
are required by § 6110(c).

## Criminal or civil fraud cases

.07 The provisions of this section (about referring issues upon the taxpayer's request,
obtaining the taxpayer's statement of the areas of disagreement, telling the taxpayer about the
referral of issues, giving the taxpayer a copy of the arguments submitted, submitting proposed
deletions, and granting conferences in EP or EO Technical) do not apply to a TAM described
in § 6110(g)(5)(A) that involves a matter that is the subject of or is otherwise closely related
to a criminal or civil fraud investigation, or a jeopardy or termination assessment.

In these cases, a copy of the TAM is given to the taxpayer after all proceedings in the
investigations or assessments are complete, but before the Service mails the notice of intention
to disclose the TAM under § 6110(f)(1). The taxpayer may then provide the statement of
proposed deletions to EP or EO Technical.

# SECTION 12. HOW DOES A TAXPAYER APPEAL AN EP OR EO MANAGER'S OR AN APPEALS AREA DIRECTOR'S DECISION NOT TO SEEK TECHNICAL ADVICE?

Taxpayer notified of decision not
to seek a TAM

.01 If the EP or EO specialist's or the appeal's referral of an issue to EP or EO Technical
for a TAM is not warranted, the EP or EO specialist or the appeals office will tell the taxpayer.
A taxpayer's request for such a referral will not be denied merely because EP or EO Technical
provided legal advice, other than advice furnished pursuant to this revenue procedure, to the
EP or EO Examinations or the EP or EO Determinations or appeals office on the matter.

Taxpayer may request review of
decision not to seek a TAM

.02 The taxpayer may request review of the decision of the EP or EO specialist or the
appeals office not to request a TAM in all instances. To do so, the taxpayer must submit to that
specialist or office, within 10 calendar days after being told of the decision, a written statement
of the facts, law, and arguments on the issue and the reasons why the taxpayer believes the
matter should be referred to EP or EO Technical for a TAM. A taxpayer who needs more than
10 calendar days must justify in writing the request for an extension of time. The extension
is subject to the approval of the EP or EO Examinations Area manager or the EP or EO
Determinations manager or the appropriate appeals office.

EP or EO Examinations Area
manager or EP or EO
Determinations manager or
Appeals Area Director
determines whether technical
advice will be sought

.03 The EP or EO specialist or the appeals office submits the taxpayer's statement through
proper channels to the EP or EO Examinations Area manager or the EP or EO Determinations
manager or the Appeals Area Director along with the EP or EO specialist's or the appeals
office's statement of why the issue should not be referred to EP or EO Technical. The manager
or chief determines, on the basis of the statements, whether a TAM will be requested.

If the manager or chief determines that a TAM is not warranted and proposes to deny the
request, the taxpayer is told in writing about the determination. In the letter to the taxpayer,
the manager or chief states the reasons for the proposed denial (except in unusual situations

when doing so would be prejudicial to the best interests of the Government). The taxpayer has 10 calendar days after receiving the letter to notify the manager or chief of agreement or disagreement with the proposed denial.

Manager or area director's decision may be reviewed but not appealed SECTION 13. HOW ARE REQUESTS FOR TAMS WITHDRAWN?

.04 The taxpayer may not appeal the decision of the EP or EO Examinations Area manager or the EP or EO Determinations manager or the Appeals Area Director not to request a TAM from EP or EO Technical. However, if the taxpayer does not agree with the proposed denial, all data on the issue for which the TAM has been sought, including the taxpayer's written request and statements, will be submitted to the Commissioner, Tax Exempt and Government Entities Division. For a request submitted by Appeals, the data for the TAM request will be sent electronically to the "*AP Tax Policy &amp; Procedure" email address-Attention: TAM Coordinator - in the subject line. The Commissioner, Tax Exempt and Government Entities Division through the Director, Employee Plans, or the Director, Exempt Organizations or, if appropriate, the Appeals Director Tax Policy &amp; Procedure (Exam) will review the proposed denial solely on the basis of the written record, and no conference will be held with the taxpayer or the taxpayer's representative. The appropriate Director or his or her representative may consult with EP or EO Technical and the Office of Chief Counsel, if necessary, and will notify the EP or EO Examinations or the EP or EO Determinations or the appeals office within 45 calendar days of receiving all the data regarding the request for a TAM whether the proposed denial is approved or disapproved. The EP or EO Examinations or the EP or EO Determinations or appeals office will then notify the taxpayer.

While the matter is being reviewed, the EP or EO Examinations office or the EP or EO Determinations office or the appeals office suspends action on the issue (except when the delay would prejudice the Government's interest). The provisions of this revenue procedure regarding review of the proposed denial of a request for a TAM continue to be applicable in those situations in which the authority normally exercised by the EP or EO Examinations Area manager, the EP or EO Determina- tions manager, or the Appeals Area Director has been delegated to another official.

Taxpayer notified

.01 Once a request for a TAM has been sent to EP or EO Technical, only an EP or EO Examinations Area manager, an EP or EO Determinations manager or the Appeals Area Director may withdraw that request for the TAM. He or she may ask to withdraw a request at any time before the responding transmittal memorandum transmitting the TAM is signed. The EP or EO Examinations Area manager, the EP or EO Determinations manager or the Appeals Area Director as appropriate, must notify the taxpayer in writing of an intent to withdraw the request for the TAM except:

(1) when the period of limitations on assessment is about to expire and the taxpayer has declined to sign a consent to extend the period; or

(2) when such notification would be prejudicial to the best interests of the Government. If the taxpayer does not agree that the request for a TAM should be withdrawn, the procedures in section 12 of this revenue procedure must be followed.

EP or EO Technical may provide views Bulletin No. 2014-1

.02 When a request for a TAM is withdrawn, EP or EO Technical may send its views to the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director when acknowledging the withdrawal request. In an appeals case, acknowledgment of the withdrawal request should be sent electronically to the Appeals TAM Coordinator at the "*AP Tax Policy &amp; Procedure" email address-Attention: TAM Coordinator - in the subject Sec. 13.02

183 January 2, 2014

line. In appropriate cases, the subject matter may be published as a revenue ruling or as a
revenue procedure.

SECTION 14. HOW ARE CONFERENCES SCHEDULED?

If requested, offered to the taxpayer when adverse TAM proposed

.01 If, after the TAM is analyzed, it appears that a TAM adverse to the taxpayer will be given, and if a conference has been requested, the taxpayer will be informed, by telephone if possible, of the time and place of the conference.

Timeline

.02 The conference for a TAM must be held within 21 calendar days after the taxpayer is contacted.

If conferences are being arranged for more than one request for a TAM for the same taxpayer, they will be scheduled to cause the least inconvenience to the taxpayer. If considered appropriate, EP or EO Technical will notify the EP or EO specialist or the appeals office of the scheduled conference and will offer the EP or EO specialist or the appeals officer the opportunity to attend the conference. The Commissioner, Tax Exempt and Government Entities Division, the Chief, Appeals, the EP or EO Examinations Area manager, the EP or EO Determinations manager, or the Appeals Area Director may designate other Service repre- sentatives to participate in the conference in lieu of, or in addition to, the EP or EO specialist or the appeals officer.

21-day period may be extended if justified and approved

.03 An extension of the 21-day period will be granted only if the taxpayer justifies it in writing, and the group manager (or his or her delegate) of the office to which the case is assigned approves it. No extension will be granted without the approval of the group manager (or his or her delegate). The taxpayer (or an authorized representative) must notify the EP Specialist or the EO Specialist or the appeals office of the request for an extension. Except in rare and unusual circumstances, EP or EO Technical will not agree to an extension of more than 10 working days beyond the end of the 21-day period. The taxpayer's request for an extension must be submitted before the end of the 21-day period, and should be submitted sufficiently before the end of this period to allow EP or EO Technical to consider, and either approve or deny, the request before the end of the 21-day period. If unusual circumstances near the end of the period make a timely written request impractical, the taxpayer (or an authorized representative) should orally inform the assigned tax law specialist or actuary before the end of the period about the problem and about the forthcoming written request for an extension. The written request for an extension must be submitted to EP or EO Technical promptly after the oral request. The taxpayer will be told promptly (and later in writing) of the approval or denial of the requested extension.

Denial of extension cannot be appealed

.04 There is no right to appeal the denial of a request for an extension of a TAM. If EP or EO Technical is not advised of problems with meeting the 21-day period, or if the written request is not sent promptly after EP or EO Technical is notified of problems with meeting the 21-day period, the TAM will be processed on the basis of the existing record.

Entitled to one conference of right

.05 A taxpayer is entitled by right to only one conference in EP or EO Technical except as provided in section 14.09 of this revenue procedure. This conference is normally held at the group level in EP Technical or EO Technical, whichever is appropriate. It is attended by a person who has authority to sign the transmittal memorandum discussed in section 16.13 on behalf of the group manager. When more than one group has taken an adverse position on an issue in the request, or when the position ultimately adopted by one group will affect another group's determination, a representative from each group with authority to sign for the group manager will attend the conference. If more than one subject is discussed at the conference, the discussion constitutes the conference of right for each subject discussed.

To have a thorough and informed discussion of the issues, the conference usually is held
after the group has had an opportunity to study the case. However, the taxpayer may request
that the conference of right be held earlier in the consideration of the case than the Service
would ordinarily designate.

The taxpayer has no right to appeal the action of a group to any other Service official. But
see section 14.09 for situations in which the Service may offer additional conferences.

.06 Because conference procedures are informal, no recording may be made by any party.

## Conference may not be recorded Conference may be delayed to

.07 In the event of a tentative adverse determination, the taxpayer may request in writing
address a request for relief under a delay of the conference so that the taxpayer can prepare and submit a brief requesting relief
§ 7805(b)
under § 7805(b) (discussed in section 19 of this revenue procedure). The group manager (or
his or her delegate) of the office to which the case is assigned will determine whether to grant
or deny the request for delaying the conference. If such request is granted, the Service will
schedule a conference on the tentatively adverse position and the § 7805(b) relief request
within 10 days of receiving the taxpayer's § 7805(b) request. See, section 19.06 of this revenue
procedure for the conference procedures if the § 7805(b) request is made after the conference
on the substantive issues has been held.

## Service makes tentative recommendations

.08 The senior Service representative at the conference ensures that the taxpayer has full
opportunity to present views on all the issues in question. The Service representatives explain
the tentative decision on the substantive issues.

If the taxpayer requests relief under § 7805(b) (regarding limitation of retroactive effect),
the Service representatives will discuss the tentative recommendation concerning the request
for relief and the reason(s) for the tentative recommendation.

No commitment will be made as to the conclusion that the Service will finally adopt
regarding any issue, including the outcome of the § 7805(b) request for relief. See also Rev.
Proc. 2014-4, section 3.08.

## Additional conferences may be offered

.09 The Service will offer the taxpayer an additional conference if, after the conference of
right, an adverse holding is proposed on a new issue or on the same issue but on grounds
different from those discussed at the first conference.

When a proposed holding is reversed at a higher level with a result less favorable to the
taxpayer, the taxpayer has no right to another conference if the grounds or arguments on which
the reversal is based were discussed at the conference of right.

The limitation on the number of conferences to which a taxpayer is entitled does not prevent
EP or EO Technical from inviting a taxpayer to attend additional conferences, including
conferences with an official higher than the group level, if EP or EO Technical personnel think
they are necessary. Such conferences are not offered as a matter of course simply because the
group has reached an adverse decision. In general, conferences with higher level officials are
offered only if the Service determines that the case presents significant issues of tax policy or
tax administration and that the consideration of these issues would be enhanced by additional
conferences with the taxpayer.

In accordance with section 14.02 of this revenue procedure, the EP or EO specialist or the
appeals office may be offered the opportunity to participate in any additional taxpayer's
conference, including a conference with an official higher than the group level. Section 14.02
of this revenue procedure also provides that other Service representatives are allowed to
participate in the conference.

## Additional information submitted after the conference

.10 After the conference, the taxpayer must furnish to EP or EO Technical, whichever is
applicable, any additional data, lines of reasoning, precedents, etc., that the taxpayer proposed
and discussed at the conference but did not previously or adequately present in writing. This

Sec. 14.10
January 2, 2014

additional information must be submitted by letter with a penalties of perjury statement in the
form described in section 16.10 of this revenue procedure.

For TAMs the taxpayer must also send a copy of the additional information to the EP or EO
Examinations office or the EP or EO Determinations office or the Appeals Area Director for
comment. Any comments on additional information by Service personnel must be furnished
promptly to the appropriate group in EP or EO Technical. If the EP or EO Examinations office
or the EP or EO Determinations office or the Appeals Area Director does not have any
comments, he or she must notify the group representative promptly.

If the additional information has a significant impact on the facts in the request for a TAM,
EP or EO Technical will ask EP or EO Examinations or EP or EO Determinations or the
Appeals Area Director for comments on the facts contained in the additional information
submitted. The EP or EO Examinations office or the EP or EO Determinations office or the
Appeals Area Director will give the additional information prompt attention.

If the additional information is not received from the taxpayer within 21 calendar days, the
TAM will be issued on the basis of the existing record.

An extension of the 21-day period for TAMs may be granted only if the taxpayer justifies
it in writing, and the group manager (or his or her delegate) of the office to which the case is
assigned approves the extension. Such extension will not be routinely granted. The procedures
for requesting an extension of the 21-day period and notifying the taxpayer of the Service's
decision are the same as those in sections 14.03 and 14.04 of this revenue procedure.

Normally held by telephone

.11 The conference will be conducted by telephone, unless the taxpayer or the field requests
that the conference be held in person. The taxpayer will be advised when to call the Service
representatives (not a toll-free call). In no event will the conference be delayed to provide an
in-person conference rather than a telephone conference.

In accordance with section 14.02 of this revenue procedure, the EP or EO specialist or
appeals office will be offered the opportunity to participate in the telephone conference.
Section 14.02 of this revenue procedure also provides that other Service representatives are
allowed to participate in the conference.

### SECTION 15. HOW IS STATUS OF REQUEST OBTAINED?

Taxpayer or taxpayer's
representative may request
status from EP or EO
Examinations or EP or EO
Determinations or appeals office

.01 The taxpayer or the taxpayer's representative may obtain information on the status of
the request for a TAM by contacting the EP or EO Examinations office or the EP or EO
Determinations office or the appeals office that requested the TAM. See section 16.08 of this
revenue procedure concerning the time for discussing the tentative conclusion with the
taxpayer's representative. See section 17.03 of this revenue procedure regarding discussions
of the contents of the TAM with the taxpayer or the taxpayer's representative.

EP or EO Technical will give
status updates to the EP or
EO Examinations Area manager
or EP or EO Determinations
office or the applicable Appeals
Area Director

.02 The group representative or manager to whom the TAM request is assigned will give
status updates on the request once a month to the EP or EO Examination Area manager or the
EP or EO Determinations manager or the Appeals Area Director. In addition, an EP or EO
Examinations Area manager or an EP or EO Determinations manager or an Appeals Area
Director may get current information on the status of the request for a TAM by calling the
person whose name and telephone number are shown on acknowledgment of receipt of the
request for the TAM.

See section 16.09 of this revenue procedure about discussing the final conclusions with the
EP or EO Examinations office or the EP or EO Determinations office or the appeals office.
Further, the EP or EO Examinations office or the EP or EO Determinations office or the
Appeals Area Director will be notified at the time the TAM is mailed.

SECTION 16. HOW DOES EP
OR EO TECHNICAL PREPARE
THE TAM?

Delegates authority to group managers

.01 The authority to issue a TAM on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division has largely been delegated to the managers of the Employee Plans Rulings &amp; Agreements Technical and Actuarial groups, and the Technical Guidance and Quality Assurance group (collectively referred to as "EP Technical"); and of the Exempt Organizations Rulings &amp; Agreements Technical groups and the Technical Guidance and Quality Assurance group (collectively referred to as "EO Technical").

Determines whether request has been properly made

.02 A request for a TAM generally is given priority and processed expeditiously. As soon as the request for a TAM is assigned, the technical employee analyzes the file to see whether it meets all of the requirements of sections 7, 8, and 10 of this revenue procedure.

However, if the request does not comply with the requirements of section 10.04 of this revenue procedure relating to the deletions statement, the Service will follow the procedure in section 11.06 of this revenue procedure.

Contacts the EP or EO Examinations or EP or EO Determinations or appeals office to discuss issues

.03 Upon receipt of a request for a TAM, a representative of the group assigned the TAM will telephone the EP or EO Examinations office or the EP or EO Determinations office or the appeals office to acknowledge receipt of the TAM and to establish a point of contact. Within 21 calendar days from the receipt of a TAM, the tax law specialist or actuary should contact the EP or EO specialist or appeals office to discuss the procedural and substantive issues in the request that come within the group's jurisdiction.

Informs the EP or EO Examinations or EP or EO Determinations or appeals office if any matters in the

.04 If the technical advice request concerns matters within the jurisdiction of more than one group or office, a representative of the group that received the original technical advice request generally informs the EP or EO Examinations office or the EP or EO Determinations office or the appeals office within 21 calendar days of receiving the request that:

request have been referred to another group or office

(1) the matters within the jurisdiction of another group or office have been referred to the other group or office for consideration; and

(2) a representative of the other group or office will contact the EP or EO Examinations office or the EP or EO Determinations office or the appeals office about the referral of the technical advice request within 21 calendar days after receiving it in accordance with section 16.03 above.

Informs the EP or EO Examinations or EP or EO Determinations or appeals office if additional information is needed

.05 The group representative will inform the EP or EO Examinations office or the EP or EO Determinations office or the appeals office that the case is being returned if substantial additional information is required to resolve an issue. Cases also should be returned for additional information when significant unresolved factual variances exist between the state- ment of facts submitted by the EP or EO Examinations office or the EP or EO Determinations office or the appeals office and the taxpayer. They should also be returned if major procedural problems cannot be resolved by telephone. The EP or EO Examinations office or the EP or EO Determinations office or the appeals office should promptly notify the taxpayer of the decision to return the case for further factual development or other reasons. If only minor procedural deficiencies exist, the group will request the additional information in the most expeditious manner without returning the case.

Informs the EP or EO Examinations or EP or EO Determinations or appeals office of the tentative conclusion

.06 If all necessary information has been provided, the group representative informs the

EP or EO Examinations office or the EP or EO Determinations office or the appeals office within 21-calendar days after receiving the information for a TAM of his or her tentative conclusion.

If a tentative conclusion has not been reached, gives date estimated for tentative conclusion

office or the appeals office of the estimated date the tentative conclusion will be made. .07 If a tentative conclusion has not been reached because of the complexity of the issue, the group representative informs the EP or EO Examinations office or the EP or EO Determinations Sec. 16.07

Bulletin No. 2014-1

187 January 2, 2014

Advises the EP or EO Examinations or EP or EO Determinations or appeals office that preliminary conclusion not final

.08 Because the group representative's tentative conclusion may change during the preparation and review of the TAM, the tentative conclusion should not be considered final. Therefore, neither the group representative nor the EP or EO Examinations office or the EP or EO Determinations or the appeals office should advise the taxpayer or the taxpayer's representative of the tentative conclusion before the scheduling of the adverse conference or between the scheduling and the commencement of the adverse conference.

Advises the EP or EO Examinations or EP or EO Determinations or appeals office of final conclusions

.09 In all cases, the group representative should inform the EP or EO specialist or appeals office of EP or EO Technical's final conclusions. The EP or EO specialist or the appeals office should be offered the opportunity to discuss the issues and EP or EO Technical's final conclusions before the TAM is issued.

If needed, requests additional information

.10 If, following the initial contact referenced in section 16.03 of this revenue procedure, it is determined, after discussion with the appropriate group manager or reviewer, that additional information is needed, a group representative will obtain the additional information from the taxpayer, the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director in the most expeditious manner possible. Any additional information requested from the taxpayer by EP or EO Technical must be submitted by letter, accompanied by a penalties of perjury statement, within 21 calendar days after the request for information is made.

Request for additional information by fax

(1) To facilitate prompt action on TAM requests, the Service may request any additional information from the taxpayer by fax.

A request to fax a copy of additional information to the taxpayer or the taxpayer's authorized representative must be made in writing, either as part of the original TAM request or prior to the mailing of the request for additional information. The request to fax additional information must contain the fax number of the taxpayer or the taxpayer's authorized representative to and from whom the document is to be faxed. Because of the unsecured nature of a fax transmission, the Service will take certain precautions to protect confidential information. For example, the Service will use a cover sheet that identifies the intended recipient of the fax and the number of pages transmitted, that does not identify the taxpayer by name or tax identifying number and that contains a statement prohibiting unauthorized disclosure of the document if a recipient of the faxed document is not the intended recipient of the fax. Also, for example, the cover sheet should be faxed in an order in which it will become the first page covering the faxed document.

Penalties of perjury statement

(2) Additional information submitted to EP or EO Technical must be accompanied by the following declaration: "Under penalties of perjury, I declare that I have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information and such facts are true, correct, and complete." This declaration must be signed and dated by the taxpayer, not the taxpayer's representative. A stamped signature or a faxed signature is not permitted. (3) A written request for an extension of time to submit additional information must be received by EP or EO Technical within the 21-day period, giving compelling facts and circumstances to justify the proposed extension. The group manager (or his or her delegate) of the office to which the case is assigned will determine whether to grant or deny the request for an extension. Except in rare and unusual circumstances, EP or EO Technical will not agree to an extension of more than 10 working days beyond the end of the 21-day period. There is no right to appeal the denial of a request for an extension. (4) If EP or EO Technical does not receive the additional information within 21 calendar days, plus any extensions granted by the appropriate group manager (or his or her delegate), EP or EO Technical will process the TAM based on the existing record.

Requests taxpayer to send
additional information to
the EP or EO Technical and a
copy to the EP or EO
Examinations or EP or EO
Determinations or Appeals
Area Director

.11 Whether or not requested by the Service, any additional information submitted by the
taxpayer should be sent to the Service. Generally, the taxpayer needs only to submit the
original of the additional information to EP or EO Technical. However, in appropriate cases,
EP or EO Technical may request additional copies of the information.

Also, the taxpayer must send a copy to the EP or EO Examinations office, or the EP or EO
Determinations office, or the Appeals Area Director, as appropriate, for comment. Any
comments must be furnished promptly to the appropriate group in EP or EO Technical. If the
EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area
Director does not have any comments, he or she must notify the group representative
promptly.

Informs the taxpayer when
requested deletions will not be
made

.12 Generally, before replying to the request for a TAM, EP or EO Technical informs the
taxpayer orally or in writing of the material likely to appear in the TAM that the taxpayer
proposed be deleted but that the Service has determined should not be deleted.

If so informed, the taxpayer may submit within 10 calendar days any further information or
other arguments supporting the taxpayer's proposed deletions.

The Service will attempt to resolve all disagreements about proposed deletions before EP
or EO Technical replies to the request for a TAM. However, the taxpayer does not have the
right to a conference to resolve any disagreements about material to be deleted from the text
of the TAM. These matters, however, may be considered at any conference otherwise
scheduled for the request.

Prepares reply in two parts

.13 EP or EO Technical's reply to a TAM request is in two parts. Each part identifies the
taxpayer by name, address, identification number, and year or years involved.

(1) The first part of the reply is a transmittal memorandum. In unusual cases, it is a way of
giving the EP or EO Examinations office or the EP or EO Determinations office or the appeals
office administrative or other information that under the nondisclosure statutes or for other
reasons may not be discussed with the taxpayer.

(2) The second part is the TAM, which contains:

(a) a statement of the issues;

(b) a statement of the facts pertinent to the issues;

(c) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other
precedents published in the Internal Revenue Bulletin, and court decisions;

(d) a discussion of the rationale underlying the conclusions reached by EP or EO Technical;
and

(e) the conclusions of EP or EO Technical.

The conclusions give direct answers, whenever possible, to the specific issues raised by the
EP or EO Examinations office or the EP or EO Determinations office or the appeals office.
However, EP or EO Technical is not bound by the precise statement of the issues as submitted
by the taxpayer or by the EP or EO Examinations office or the EP or EO Determinations office
or the appeals office and may reframe the issues to be answered in the TAM. The discussion
in the TAM of the issues will be in sufficient detail so that the EP or EO Examinations or EP
or EO Determinations or appeals officials will understand the reasoning underlying the
conclusion.

Accompanying a TAM subject to § 6110, is a notice under § 6110(f)(1) of intention to
disclose the TAM (including a copy of the version proposed to be open to public inspection
and notations of third party communications under § 6110(d)).

## Routes replies to appropriate office

.14 Replies to requests for TAMs from EO Examinations Area managers are addressed to:
Internal Revenue Service
Attn: EO Mandatory Review
MC 4920 DAL
1100 Commerce Street
Dallas, TX 75242

The EO Mandatory Review Staff will ensure that copies are forwarded to the EO Exam-
inations Area manager.

Replies to requests for TAMs from EO Determinations are addressed to:

Internal Revenue Service-TE/GE
Manager, EO Determinations
550 Main Street, Room 4106
Cincinnati, OH 45202

Replies to requests for TAMs from EP Examinations Area managers as well as replies to
all requests for TAMs from other Operating Divisions of the Service involved in an exami-
nation where EP Technical does not have audit jurisdiction but has interpretive jurisdiction as
enumerated in section 6.02 of Rev. Proc. 2014-4, are addressed to:

Internal Revenue Service
Attn: EP Special Review - Room 1550
SE:T:EP:E:PR:SR:Technical Advice Coordinator
P.O. Box 13163
Baltimore, MD 21203

The EP Special Review Staff will ensure that copies are forwarded to the applicable
manager.

Replies to requests for TAMs from EP Determinations managers, are addressed to:

Internal Revenue Service
Attn: EP Determinations Quality Assurance
P.O. Box 2508
Cincinnati, OH 45201

Replies to requests for TAMs from the Appeals Area Director are routed back to the
appropriate Appeals Area Director. In addition, send electronic copies of replies to Appeals
TAM Coordinator at the "*AP Tax Policy & Procedure" email address - Attention: TAM
Coordinator - in the subject line.

SECTION 17. HOW DOES AN
EP OR EO EXAMINATIONS
OR EP OR EO
DETERMINATIONS OR
AN APPEALS OFFICE USE
THE TAMs?

Generally applies advice in
processing the taxpayer's case

.01 The EP or EO Examinations Area manager or the EP or EO Determinations manager
or the Appeals Area Director must process the taxpayer's case on the basis of the conclusions
in the TAM unless:

(1) the EP or EO Examinations Area manager or the EP or EO Determinations manager or
the Appeals Area Director decides that the conclusions reached by EP or EO Technical in a
TAM should be reconsidered (the reconsideration process may include a conference held with

the EP or EO specialist or appeals office that requested the TAM and the tax law specialist or
actuary who drafted the TAM); or

(2) the Appeals Area Director in the case of a TAM unfavorable to the taxpayer, decides
to settle the issue in the usual manner under existing authority.

Subject to a request for reconsideration of the conclusions in a TAM, EP or EO Exami-
nations or EP or EO Determinations must follow the conclusions in a TAM as to all issues and
the Appeals Area Director must follow the conclusions in a TAM on issues of an organiza-
tion's/plan's status or qualification. Thus, if the TAM received by EP or EO Examinations or
EP or EO Determinations concerns an organization's/plan's status or qualification, the
organization/plan has no appeal to the appeals office on those specific issues.

Reconsideration

.02 The EP or EO Area Examinations office or the EP or EO Determinations office or the
Appeals Area Director has 30 calendar days after receipt of a TAM to either formally request
reconsideration or give the adopted TAM to the taxpayer. Requests for TAM reconsideration
must describe with specificity the errors in the TAM analysis and conclusions. Requests for
reconsideration should not reargue points raised in the initial request, but should instead focus
on points that the TAM overlooked or misconstrued in the arguments by the EP or EO Area
Examinations office or the EP or EO Determinations office or the Appeals Area Director in
support of their request. The Service may request further submissions from the field or the
taxpayer, but the parties should make no additional submissions in the absence of such a
request.

If the field does not request reconsideration of a TAM, the TAM will take effect when the
field provides a copy of the adopted TAM to the taxpayer, or at the end of the 30-day period
following the issuance of the TAM to the field.

Discussion with the taxpayer

.03 EP or EO Technical will not discuss the contents of the TAM with the taxpayer or
the taxpayer's representative until the taxpayer has been given a copy by the EP or EO
Examinations office or the EP or EO Determinations office or the appeals office.

Gives copy to the taxpayer

.04 After adopting the TAM, and only after adopting the TAM, the EP or EO Examinations
office, the EP or EO Determinations office, or the Appeals Area Director will give the
taxpayer: (1) a copy of the TAM described in section 16.13 of this revenue procedure; and (2)
the notice of intention to disclose the TAM as provided by § 6110(f)(1) of the Code (which
includes a copy of the version proposed to be open to public inspection and notations of third
party communications under § 6110(d) of the Code).

This requirement does not apply to a TAM involving a criminal or civil fraud investigation,
or a jeopardy or termination assessment, as described in section 11.07 of this revenue
procedure, or documents to which § 6104 (document open to public inspection) applies, as
described in section 10.03.

Taxpayer may protest
deletions not made

.05 After receiving the notice under § 6110(f)(1) of intention to disclose the TAM, the
taxpayer may protest the disclosure of certain information in it. The taxpayer must submit a
written statement within 20 calendar days identifying those deletions not made by the Service
that the taxpayer believes should have been made. The taxpayer must also submit a copy of
the version of the TAM proposed to be open to public inspection with brackets around
deletions proposed by the taxpayer that have not been made by EP or EO Technical.

Generally, EP or EO Technical considers only the deletion of material that the taxpayer has
proposed be deleted or other deletions as required under § 6110(c) before the EP or EO
Technical reply is sent to the EP or EO Examinations office or the EP or EO Determinations
office or the Appeals Area Director. Within 20 calendar days after it receives the taxpayer's
response to the notice under § 6110(f)(1), EP or EO Technical must mail the taxpayer its final
administrative conclusion about the deletions to be made.

When no copy is given to the taxpayer

.06 If EP or EO Technical tells the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director that a copy of the TAM should not be given to the taxpayer and the taxpayer requests a copy, the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director will tell the taxpayer that no copy will be given.

SECTION 18. WHAT IS THE EFFECT OF A TAM?

Applies only to the taxpayer for whom TAM was requested

.01 A taxpayer may not rely on a TAM issued by the Service for another taxpayer.

Usually applies retroactively

.02 Except when stated otherwise, a holding in a TAM is applied retroactively, unless the Commissioner, Tax Exempt and Government Entities Division exercises discretionary au- thority under § 7805(b) to limit the retroactive effect of the holding. Section 19 of this revenue procedure explains the process for requesting and section 18.06 below lists the criteria for granting relief under § 7805(b) of the Code. Both sections 18 and 19 describe generally the effect of § 7805(b) relief.

Generally applied retroactively to modify or revoke prior TAM

.03 A holding that modifies or revokes a holding in a prior TAM is applied retroactively, with one exception. If the new holding is less favorable to the taxpayer than the earlier one, it generally is not applied to the period when the taxpayer relied on the prior holding in situations involving continuing transactions.

Applies to continuing action or series of actions until specifically withdrawn, modified, or revoked

.04 If a TAM relates to a continuing action or a series of actions, ordinarily it is applied until specifically withdrawn or until the conclusion is modified or revoked by enactment of legislation, ratification of a tax treaty, a decision of the United States Supreme Court, or the issuance of regulations (temporary or final), a revenue ruling, or other statement published in the Internal Revenue Bulletin. Publication of a notice of proposed rulemaking does not affect the application of a TAM.

Applies to continuing action or series of actions until material facts change

.05 A taxpayer is not protected against retroactive modification or revocation of a TAM involving a continuing action or a series of actions occurring after the material facts on which the TAM is based have changed.

Does not apply retroactively under certain conditions

.06 Generally, a TAM that modifies or revokes a letter ruling or another TAM or a determination letter is not applied retroactively either to the taxpayer to whom or for whom the letter ruling or TAM or determination letter was originally issued, or to a taxpayer whose tax liability was directly involved in such letter ruling or TAM or determination letter if: (1) there has been no misstatement or omission of material facts;

(2) the facts at the time of the transaction are not materially different from the facts on which the letter ruling or TAM or determination letter was based; (3) there has been no change in the applicable law;

(4) in the case of a letter ruling, it was originally issued on a prospective or proposed transaction; and

(5) the taxpayer directly involved in the letter ruling or TAM or determination letter acted in good faith in relying on the letter ruling or TAM or determination letter, and the retroactive modification or revocation would be to the taxpayer's detriment. For example, the tax liability of each employee covered by a letter ruling or TAM or determination letter relating to a pension plan of an employer is directly involved in the letter ruling or TAM or determination letter. However, the tax liability of members of an industry is not directly involved in a letter ruling or TAM or determination letter issued to one of the members, and the holding in a modification or revocation of a letter ruling or TAM or determination letter to one member of an industry may be retroactively applied to other members of the industry. By the same reasoning, a tax practitioner may not obtain the nonretroactive application to one client of a

modification or revocation of a letter ruling or TAM or determination letter previously issued
to another client.

When a letter ruling or determination letter to a taxpayer or a TAM involving a taxpayer is
modified or revoked with retroactive effect, the notice to the taxpayer, except in fraud cases,
sets forth the grounds on which the modification or revocation is being made and the reason
why the modification or revocation is being applied retroactively.

In order for a TAM that modifies or revokes a letter ruling or another TAM or a
determination letter not to be applied retroactively either to the taxpayer to whom or for whom
the letter ruling, TAM or determination letter was originally issued, or to a taxpayer whose tax
liability was directly involved in such letter ruling, TAM or determination letter, such taxpayer
generally must request relief under § 7805(b) in the manner described in section 19 below.

### SECTION 19. HOW MAY RETROACTIVE EFFECT BE LIMITED?

Commissioner has
discretionary authority under §
7805(b)

.01 Under § 7805(b) the Commissioner or the Commissioner's delegate has the discretion
to prescribe the extent, if any, to which a TAM will be applied without retroactive effect.

Taxpayer may request
Commissioner to exercise
authority

.02 A taxpayer who has received a TAM or for whom a TAM request is pending may
request that the Commissioner, Tax Exempt and Government Entities Division, the Commis-
sioner of Internal Revenue's delegate, exercise the discretionary authority under § 7805(b) to
limit the retroactive effect of any holding stated in the TAM, which may still be pending,
which must have been issued, or to limit the retroactive effect of any subsequent modification
or revocation of a TAM.

## Form of request to limit retroactivity-before an examination

.03 When a TAM that concerns a continuing transaction is modified or revoked by, for
example, a subsequent revenue ruling or final regulations, a request to limit the retroactive
effect of the modification or revocation of the TAM must be made in the form of a request for
a letter ruling if submitted before examination of the return that contains the transaction that
is the subject of the request for the letter ruling. See Rev. Proc. 2014-4.

Form of request to limit
retroactivity-during course of
an examination

.04 When, during the course of an examination of a taxpayer's return by EP or EO
Examinations or consideration by the Appeals Area Director, a taxpayer is informed that EP
or EO Examinations or the Appeals Area Director recommends that a TAM be modified or
revoked, a request to limit the retroactive application of the modification or revocation of the
TAM must itself be made in the form of a request for a TAM. See sections 7, 8 and 10 of this
revenue procedure and sections 19.07 and 19.08 below.

The taxpayer must also submit a statement that the request is being made pursuant to
§ 7805(b). This statement must also indicate the relief requested and give the reasons and
arguments in support of the relief requested. It must also be accompanied by any documents
bearing on the request. The explanation should discuss the five items listed in section 18.06
of this revenue procedure as they relate to the taxpayer's situation.

The taxpayer's request, including the statement that the request is being made pursuant to
§ 7805(b), must be forwarded by EP or EO Examinations or the Appeals Area Director to EP
or EO Technical for consideration.

Form of request to limit
retroactivity-technical
advice that does not modify or
revoke prior memorandum

.05 A request to limit the retroactive effect of a holding in a TAM that does not modify or
revoke a TAM may be made as part of that TAM request, either initially, or at any time before the
TAM is issued by EP or EO Technical. In such a case, the taxpayer must also submit a statement
in support of the application of § 7805(b), as described in section 19.04 above.

Taxpayer's right to a conference

.06 When a request for a TAM concerns only the application of § 7805(b), the taxpayer has
the right to a conference in EP or EO Technical in accordance with the provisions of section
14 of this revenue procedure.

Sec. 19.06
January 2, 2014

## Exhaustion of administrative remedies - employee plans determination letter requests

## Exhaustion of administrative remedies - exempt organization matters

## SECTION 20. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?

## SECTION 21. EFFECTIVE DATE

## SECTION 22. PAPERWORK REDUCTION ACT

If the request for application of § 7805(b) is included in the request for a TAM on the
substantive issues or is made before the conference of right on the substantive issues, the
§ 7805(b) issues will be discussed at the taxpayer's one conference of right.

If the request for the application of § 7805(b) is made as part of a pending TAM request
after a conference has been held on the substantive issues, and the Service determines that
there is justification for having delayed the request, then the taxpayer will have the right to one
conference of right concerning the application of § 7805(b), with the conference limited to
discussion of this issue.

.07 Where the applicant has requested EP Determinations to seek a TAM on the
applicability of § 7805(b) relief to a qualification issue under § 401(a) pursuant to a
determination letter request, the applicant's administrative remedies will not be considered
exhausted until EP Technical has a reasonable time to act on the request for a TAM. See
section 20 of Rev. Proc. 2014-6.

.08 Where a TAM has been requested pursuant to an exempt organization's request for
§ 7805(b) relief from the retroactive application of an adverse determination within the
meaning of § 7428(a)(1), the exempt organization's administrative remedies will not be
considered exhausted, within the meaning of § 7428(b)(2), until EO Technical has a reason-
able time to act on the request for a TAM.

Rev. Proc. 2013-5 is superseded.

This revenue procedure is effective January 2, 2014.

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 1545-1520.

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 OMB control
number.

The collections of information in this revenue procedure are in sections 6.03, 9, 10.01,
10.05, 11.04, 11.05, 11.06, 12.02, 12.03, 13.01, 14.03, 14.10, 16.10, 16.12, 17.05, 19.03,
19.04, and 19.05. This information is required to evaluate and process the request for a TAM.
In addition, this information will be used to help the Service delete certain information from
the text of the TAM before it is made available for public inspection, as required by § 6110.
The collections of information are required to obtain a TAM. The likely respondents are
businesses or other for-profit institutions and not-for-profit institutions.

The estimated total annual reporting and/or recordkeeping burden is 1,950 hours.

The estimated annual burden per respondent/recordkeeper varies from 4 hours to 60 hours,
depending on individual circumstances, with an estimated average of 19.5 hours. The
estimated number of respondents and/or recordkeepers is 100.

The estimated annual frequency of responses is one request per applicant.

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.

## DRAFTING INFORMATION

The principal author of this revenue procedure is Yaguo Zhang of the Employee Plans, Tax
Exempt and Government Entities Division. For further information regarding how this
revenue procedure applies to employee plans matters, please contact the Employee Plans
Customer Assistance Service at 877-829-5500 (a toll-free number) between the hours of 8:30
am and 4:30 pm Eastern time, Monday through Friday. In the alternative, please e-mail Mr.
Zhang at RetirementPlanQuestions@irs.gov. For exempt organizations matters, please email
Mr. Jonathan Carter at tege.eo@irs.gov. Please put "Question about Rev. Proc. 2014-5" in the
subject line.

## INDEX References are to sections in Rev. Proc. 2014-5

Additional Information

- procedure for submission

sections 16.02, 16.05, 16.10

after conference

section 14.10

- proposed deletions under § 6110

section 10.04

Chief Counsel

-jurisdiction

section 5.01

Conferences

- offered

sections 11.03, 14.01, 14.09

exceptions

sections 11.05, 12.04, 16.12

- pre-submission

.section 9

- scheduling.

section 14

request to limit retroactivity

sections 14.07, 14.08, 19.06

telephone conferences

section 14.11

Definitions

- technical advice memorandum

section 3

Extension of Time

- to appeal decision not to request

.section 12.02

- to disagree with statement of facts

sections 11.04, 11.05

- to schedule conference.

sections 14.03, 14.05

- to submit additional information

sections 14.10, 16.10

Farmers' Cooperatives

.sections 4.02, 5.01

Letter Ruling.

.section 18.06

Mandatory Technical Advice

sections 4.04, 7.01

Paperwork Reduction Act

section 22

Perjury Statement

sections 14.10, 16.10

Power of Attorney

section 10.06

Public Disclosure under § 6110

- deletion statement required.

section 10.04

exception when § 6104 applies

section 10.03

failure to submit

section 11.06

- notice of intention to disclose

section 17.04

protesting deletions not made

sections 16.12, 17.05

Representatives

sections 14.08, 16.10

Retroactive Effect

- in general

.sections 18.02 -. 06

on letter ruling

section 18.06

- request to limit retroactivity

section 19

employee plans determination letters

section 19.07

exempt organization matters

section 19.08

format of request

sections 19.03, 19.04

scheduling conference

sections 14.07, 14.09, 19.06

Revenue Rulings

- effect on continuing transaction

sections 18.04, 18.05

request to limit retroactivity

sections 19.01 -. 05

Section 301.9100-1 Relief

section 6

Status of TAM

- to EP or EO Examinations Area or

EP or EO Determinations or appeals office

section 15.02

- to taxpayer.

section 15.01

Where to Send

- additional information.

section 16.10

- technical advice request from appeals office

section 10.05

- technical advice request from EP or EO Examinations or EP or EO Determinations

section 10.05

Withdrawal of TAM

section 13

# 26 CFR 601.201: Rulings and determination letters.

## Rev. Proc. 2014-6

TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

202

.01 Purpose of revenue procedure

202

.02 Organization of revenue procedure

202

SECTION 2. WHAT CHANGES HAVE BEEN MADE TO THIS PROCEDURE?

202

.01 In general

202

.02 Other changes

202

.03 Other guidance

203

Part I: Procedures for Determination Letter Requests

204

SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER THIS PROCEDURE?

204

.01 Types of requests

204

.02 Areas in which determination letters will not be issued

205

.03 Submission period for applications

206

SECTION 4. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER DIFFERENT PROCEDURES?

206

.01 Tax Exempt and Government Entities

206

.02 Chief Counsel's revenue procedure

206

SECTION 5. WHAT IS THE GENERAL SCOPE OF A DETERMINATION LETTER?

206

.01 Scope of this section

206

.02 Scope of determination letters

206

.03 Nondiscrimination in amount requirement

206

.04 Governmental plans under § 414(d)

207

.05 Church plans under § 414(e)

207

.06 Tax treatment of certain contributions under § 414(h)

207

.07 Other limits on scope of the determination letter

207

.08 Affiliated service groups, leased employees and partial terminations.

207

.09 Publication 794

207

SECTION 6. WHAT IS THE GENERAL PROCEDURE FOR REQUESTING DETERMINATION LETTERS?

207

.01 Scope

207

.02 Qualified trusteed plans

207

.03 Qualified nontrusteed annuity plans

208

.04 Complete information required

208

.05 Complete copy of plan and trust instrument required

208

.06 Section 9 of Rev. Proc. 2014-4 applies

208

.07 Separate application required for each single § 414(1) plan

208

.08 Prior letters

208

.09 User fees

208

.10 Interested party notification and comment

209

.11 Contrary authority must be distinguished

209

.12 Employer/employee relationship

209

.13 Incomplete applications returned

209

.14 Effect of failure to disclose material fact

209

.15 Where to file request

210

.16 Submission of related plans

210

.17 Withdrawal of requests

210

.18 Right to status conference

210

.19 How to request status conference

210

SECTION 7. INITIAL QUALIFICATION, ETC.

211

.01 Scope

211

.02 Forms

211

.03 Timing

211

.04 Application must include copy of plan and amendments

211

.05 Restatements required

212

.06 Controlled groups, etc.

212

.07 § 414(x) combined plans

212

SECTION 8. EMPLOYER RELIANCE ON M&amp;P AND VOLUME SUBMITTER PLANS

212

.01 Scope

212

.02 Modifications to Revenue Procedure 2011-49

212

.03 Reliance equivalent to determination letter

213

SECTION 9. DETERMINATION LETTER FILING PROCEDURES FOR VOLUME SUBMITTER PLANS

213

.01 Scope

213

.02 Determination letter for adoption of volume submitter plan

213

.03 Timing of determination letter applications for adopting employers of pre-approved plans

214

SECTION 10. MULTIPLE EMPLOYER PLANS

214

.01 Scope

214

.02 Options to file for the plan only or for both the plan and employers maintaining the plan

215

.03 Where to file

215

.04 Determination letter sent to each employer who files Form 5300

215

.05 Addition of employers

215

.06 Pre-approved multiple employer plans

215

SECTION 11. RESERVED

215

SECTION 12. TERMINATION OR DISCONTINUANCE OF CONTRIBUTIONS; NOTICE OF MERGERS,

CONSOLIDATIONS, ETC.

215

.01 Scope

215

.02 Forms

215

.03 Supplemental information

216

.04 Compliance with Title IV of ERISA

216

.05 Termination prior to time for amending for change in law

216

.06 Restatement not required for terminating plan

217

SECTION 13. GROUP TRUSTS.

217

.01 Scope

217

.02 Required information

217

.03 Forms

217

SECTION 14. AFFILIATED SERVICE GROUPS; LEASED EMPLOYEES

217

.01 Scope

217

.02 Employer must request the determination under § 414(m) or § 414(n)

218

.03 Forms

218

.04 Employer is responsible for determining status under § 414(m) and § 414(n)

218

.05 Pre-approved plans

218

.06 Required information for § 414(m) determination

218

.07 Required information for § 414(n) determination

219

SECTION 15. WAIVER OF MINIMUM FUNDING.

219

.01 Scope

219

.02 Applicability of Rev. Proc. 2004-15

219

.03 Waiver request submitted to EP Technical

220

.04 Waiver and determination letter request submitted to EP Technical

220

.05 Handling of the request

220

.06 When waiver request should be submitted

221

SECTION 16. SECTION 401(h) AND § 420 DETERMINATION LETTERS

221

.01 Scope

221

.02 Required information for § 401(h) determination

221

.03 Required information for § 420 determination

221

Part II: Interested Party Notice and Comment

223

SECTION 17. WHAT RIGHTS TO NOTICE AND COMMENT DO INTERESTED PARTIES HAVE?

223

.01 Rights of interested parties

223

.02 Comments by interested parties

223

.03 Requests for DOL to submit comments

224

.04 Right to comment if DOL declines to comment

225

.05 Confidentiality of comments

225

.06 Availability of comments

225

.07 When comments are deemed made

225

SECTION 18. WHAT ARE THE GENERAL RULES FOR NOTICE TO INTERESTED PARTIES?

225

.01 Notice to interested parties

225

.02 Time when notice must be given

225

.03 Content of notice

225

.04 Procedures for making information available to interested parties

226

.05 Information to be available to interested parties

226

.06 Special rules if there are fewer than 26 participants

227

.07 Information described in § 6104(a)(1)(D) should not be included

227

.08 Availability of additional information to interested parties

227

.09 Availability of notice to interested parties

227

Part III: Processing Determination Letter Requests

228

SECTION 19. HOW DOES THE SERVICE HANDLE DETERMINATION LETTER REQUESTS

228

.01 Oral advice

228

.02 Conferences

228

.03 Determination letter based solely on administrative record

228

.04 Notice of final determination

229

.05 Issuance of the notice of final determination

229

SECTION 20. EXHAUSTION OF ADMINISTRATIVE REMEDIES

229

.01 In general

229

.02 Steps for exhausting administrative remedies

229

.03 Applicant's request for § 7805(b) relief.

230

.04 Interested parties

230

.05 Deemed exhaustion of administrative remedies

230

.06 Service must act on appeal

230

.07 Service must act on § 7805(b) request

230

.08 Effect of technical advice request

230

SECTION 21. WHAT EFFECT WILL AN EMPLOYEE PLAN DETERMINATION LETTER HAVE?

230

.01 Scope of reliance on determination letter

230

.02 Sections 13 and 14 of Rev. Proc. 2014-4 applicable

231

.03 Effect of subsequent publication of revenue ruling, etc.

231

.04 Determination letter does not apply to taxability issues

231

# SECTION 22. EFFECT ON OTHER REVENUE PROCEDURES

## SECTION 23. EFFECTIVE DATE

231

DRAFTING INFORMATION
232

EXHIBIT
233

APPENDIX

235

## SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

### Purpose of revenue procedure

.01 This revenue procedure sets forth the procedures of the Internal Revenue Service for
issuing determination letters on the qualified status of pension, profit-sharing, stock bonus,
annuity, and employee stock ownership plans (ESOPs) under §§ 401, 403(a), 409 and
4975(e)(7) of the Internal Revenue Code of 1986, and the status for exemption of any
related trusts or custodial accounts under § 501(a). Also see Rev. Proc. 2007-44, 2007-2
C.B. 54, as modified by Rev. Proc. 2008-56, 2008-2 C.B. 826, and Rev. Proc. 2009-36,
2009-2 C.B. 304, which contains a description of the determination letter program,
including when to submit a request for a determination letter within the 5-year and 6-year
staggered remedial amendment cycles, that apply to individually designed and pre-
approved (Master & Prototype and Volume Submitter (VS)) plans. Also see Rev. Proc.
2011-49, 2011-44 I.R.B. 608, for procedures for pre-approved plans.

### Organization of revenue procedure

This revenue procedure is effective February 1, 2014.

.02 Part I of this revenue procedure contains instructions for requesting
determination letters for various types of plans and transactions. Part II contains
procedures for providing notice to interested parties and for interested parties to
comment on determination letter requests. Part III contains procedures concerning the
processing of determination letter requests and describes the effect of a determination
letter.

## SECTION 2. WHAT CHANGES HAVE BEEN MADE TO THIS PROCEDURE?

### In general

.01 This revenue procedure is a general update of Rev. Proc. 2013-6, 2013-1 I.R.B
198, which contains the Service's general procedures for employee plans determination
letter requests.

Other changes

.02 In addition to minor revisions, such as updating references, the following changes
have been made:

(1) Revenue Procedure 2008-50 has been superseded by Revenue Procedure 2013-12
and cites throughout have been changed accordingly;

(2) Section 2.03 has been modified to update the plan submission requirements;

(3) Section 3.02(2) has been modified by changing the word "approval" to "reliance;"

(4) Section 3.03 has been modified to reflect the current submission cycle and dates;

(5) Section 4.01(2) has been clarified to refer to plans submitted under section 401(a);

(6) Section 4.01(4) has been added to refer to prototype and volume submitter plans
submitted under § 403(b);

(7) Section 6.04 has been modified for clarity;

(8) Section 6.05 has been modified for clarity;

(9) Section 6.08 has been modified by adding a separate header for plans involving
mergers;

(10) Sections 6.09, 7.02(5), 9.02(2)(a), 12.02(6) and 13.03(1) have been modified by
adding instructions for user fees that are paid via www.pay.gov;

(11) Section 7.03 has been modified to clarify the submission requirements;

(12) Section 7.05 has been modified to clarify the submission requirements;

(13) Section 9.02(3) has been modified by changing the word "may" to "will";

(14) Section 9.03 has been modified to clarify the timing of applications for adopting
employers of pre-approved plans;

(15) Sections 10.02(2), 10.03, and 10.05 have been modified to remove the references
to adoption agreements;

(16) Section 10.06 has been added to identify the Cumulative List to be used for certain
multiple employer plans;

(17) Section 12.02(3) has been modified to clarify the procedures for completing Form
6088;

(18) Section 16.03 has been modified to remove the reference to a cover letter; and

(19) The sample notice to interested parties in the exhibit has been modified to change
the address for submitting comments to EP Determinations.

.03 Other guidance affecting this revenue procedure:

Other guidance

(1) Rev. Proc. 2011-49, 2011-44 I.R.B. 608 describes the procedures for the "pre-
approval" of plans under the master and prototype (M&P) program and the VS program.
Rev. Proc. 2007-44 describes a system of remedial amendment cycles that applies to
pre-approved plans and individually designed plans, and the deadlines to submit appli-
cations for opinion, advisory and determination letters. The Service issues a Cumulative
List every year identifying changes affecting plan qualification requirements.

(2) The 2013 Cumulative List is contained in Notice 2013-84, 2013-52 I.R.B. 822.

## PART I. PROCEDURES FOR DETERMINATION LETTER REQUESTS

SECTION 3. ON WHAT
ISSUES MAY TAXPAYERS
REQUEST WRITTEN
GUIDANCE UNDER THIS
PROCEDURE?

Types of requests
.01 Determination letters may be requested on completed and proposed transactions
as set forth in the table below:

TYPE OF REQUEST

FORMS

REV. PROC. SECTION

1. Initial Qualification, etc.

a. Individually-designed plans (including collectively bargained plans) and partial terminations

5300

b. ESOPs

5300, 5309

c. Adoptions of volume submitter plans (where the employer has made limited modifications to the language of the approved specimen plan)

5307

d. Multiple employer plans

5300

e. Group trusts

5316

f. § 414(x) combined plans

5300

2. Termination

a. In general

5310, 6088

b. Multiemployer plan covered by PBGC insurance

5300, 6088

Note: Form 5310-A, Notice of Plan Merger, Consolidation, Spinoff or Transfer of Plan Assets or Liabilities - Notice
of Qualified Separate Lines of Business generally must be filed not less than 30 days before the merger,
consolidation or transfer of assets and liabilities. The filing of Form 5310-A will not result in the issuance of a
determination letter.

3. Special Procedures

5300

Affiliated service group status (§ 414(m)), leased employees (§ 414(n)), partial termination

Minimum funding waiver

5300

Section 401(h) determination letters

5300

Section 420 determination letters including other matters under § 401(a)

5300, Cover letter, Checklist

Section 420 determination letters excluding other matters under § 401(a)

Cover letter, Checklist

# Areas in which determination letters will not be issued

.02 Determination letters issued in accordance with this revenue procedure do not
include determinations on the following issues within the jurisdiction of the Commis-
sioner, TE/GE:

(1) Issues involving §§ 72, 79, 105, 125, 127, 129, 402, 403 (other than 403(a)), 404,
409(l), 409(m), 412, 414(h)(2), 415(m), 457, 511 through 515, and 4975 (other than
4975(e)(7)), unless these determination letters are authorized under section 7 of Rev. Proc.
2014-4, page 125, this Bulletin.

(2) Plans or plan amendments for which automatic reliance is granted pursuant to
section 19 of Rev. Proc. 2011-49.

(3) Plan amendments described below (these amendments will, to the extent pro-
vided, be deemed not to alter the qualified status of a plan under § 401(a).

(a) An amendment solely to permit a trust forming part of a plan to participate in
a pooled fund arrangement described in Rev. Rul. 81-100, 1981-1 C.B. 326, as clarified
and modified by Rev. Rul. 2004-67, 2004-2 C.B. 28; and Rev. Rul. 2011-1, 2011-2
I.R.B. 251;

(b) An amendment that merely adjusts the maximum limitations under § 415 to
reflect annual cost-of-living increases under § 415(d), other than an amendment that adds
an automatic cost-of-living adjustment provision to the plan; and

(c) An amendment solely to include language pursuant to § 403(c)(2) of Title I of
the Employee Retirement Income Security Act of 1974 (ERISA) concerning the reversion
of employer contributions made as a result of mistake of fact.

(4) This section applies to determination letter requests with respect to plans that
combine an ESOP (as defined in § 4975(e)(7) of the Code) with retiree medical benefit
features described in § 401(h) (HSOPs).

(a) In general, determination letters will not be issued with respect to plans that
combine an ESOP with an HSOP with respect to:

(i) whether the requirements of § 4975(e)(7) are satisfied;

(ii) whether the requirements of § 401(h) are satisfied; or

(iii) whether the combination of an ESOP with an HSOP in a plan adversely
affects its qualification under § 401(a).

(b) A plan is considered to combine an ESOP with an HSOP if it contains ESOP
provisions and § 401(h) provisions.

(c) However, an arrangement will not be considered covered by section 3.02(4) of
this revenue procedure if, under the provisions of the plan, the following conditions are
satisfied:

(i) No individual accounts are maintained in the § 401(h) account (except as
required by § 401(h)(6));

(ii) No employer securities are held in the § 401(h) account;

(iii) The § 401(h) account does not contain the proceeds (directly or otherwise)
of an exempt loan as defined in § 54.4975-7(b)(1)(iii) of the Pension Excise Tax
Regulations; and

(iv) The amount of actual contributions to provide § 401(h) benefits (when
added to actual contributions for life insurance protection under the plan) does not exceed

25 percent of the sum of: (1) the amount of cash contributions actually allocated to
participants' accounts in the plan and (2) the amount of cash contributions used to repay
principal with respect to the exempt loan, both determined on an aggregate basis since the
inception of the § 401(h) arrangement.

.03 The Service will accept applications for determination letters for the second
Cycle D submission period from February 1, 2014 to January 31, 2015. The Service's
review will take into account the qualification requirements, and other items identified
on the 2013 Cumulative List in Notice 2013-84.

Submission period for
applications

## SECTION 4. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER DIFFERENT PROCEDURES? TE/GE

.01 Other procedures for obtaining rulings, determination letters, opinion letters, etc., on
matters within the jurisdiction of the Commissioner, TE/GE are contained in the following
revenue procedures:

(1) Employee Plans Technical (EP Technical) letter rulings, information letters, etc .:
See Rev. Proc. 2014-4, page 125, this Bulletin.

(2) Master & Prototype (M&P) and Volume Submitter (VS) plans under § 401(a): See,
Rev. Proc. 2011-49.

(3) Technical advice requests: See Rev. Proc. 2014-5, page 169, this Bulletin.

(4) Prototype and Volume Submitter plans under § 403(b): See Rev. Proc. 2013-22.

Chief Counsel's revenue
procedure

.02 For the procedures for obtaining letter rulings, determination letters, etc., on
matters within the jurisdiction of the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities), or within the jurisdiction of other offices of Chief
Counsel, see Rev. Proc. 2014-1, page 1, this Bulletin.

### SECTION 5. WHAT IS THE GENERAL SCOPE OF A DETERMINATION LETTER?

Scope of this section

.01 This section delineates, generally, the scope of an employee plan determination
letter. This section also identifies certain qualification requirements that are not
considered by the Service in its review of a plan and with respect to which
determination letters do not provide reliance. This section applies to all determination
letters other than letters relating to the qualified status of group trusts; and certain
letters relating solely to the requirements of § 420, regarding the transfer of assets in a
defined benefit plan to a health benefit account described in § 401(h). For additional
information pertaining to the scope of reliance on a determination letter, see sections 8,
9 and 21 of this revenue procedure.

Scope of determination letters

.02 In general, employee plans are reviewed by the Service for compliance with the
form requirements (that is, those plan provisions that are required as a condition of
qualification under § 401(a)). For terminating plans, the requirements are those that
apply as of the date of termination. See Rev. Proc. 2007-44 for further details on the
scope of the Service's review of determination letter applications.

Nondiscrimination in amount
requirement

.03 Generally, a plan will not be reviewed for, and a determination letter may not be
relied on with respect to, whether a plan satisfies the nondiscrimination requirements of
§ 401(a)(4), the minimum participation requirements of § 401(a)(26), or the minimum
coverage requirements of § 410(b). However, if the applicant elects, a plan will be
reviewed for, and a determination letter may be relied on with respect to whether the terms

Sec. 5.03
January 2, 2014

of the plan satisfy one of the design-based safe harbors in §§ 1.401(a)(4)-2(b) and 1.401(a)(4)-3(b) of the regulations (relating to nondiscrimination in amount of contributions and benefits.) A plan will also be reviewed for, and a determination letter may be relied on with respect to, whether a plan's terms satisfy the applicable requirements of sections 401(k) and 401(m).

Governmental plans under § 414(d)

.04 A plan will not be reviewed for and a determination letter does not constitute a ruling or determination as to whether the plan is a governmental plan within the meaning of § 414(d). If a determination letter applicant indicates on the application that the plan is a governmental plan within the meaning of § 414(d), the determination letter issued for the plan is predicated on that representation.

Church plans under § 414(e)

.05 A plan will not be reviewed for and a determination letter does not constitute a ruling or determination as to whether the plan is a church plan within the meaning of § 414(e). If a determination letter applicant indicates on the application that the plan is a church plan within the meaning of § 414(e), the determination letter issued for the plan is predicated on that representation.

Tax treatment of certain contributions of § 414(h)

.06 A plan will not be reviewed for and a determination letter may not be relied on with respect to whether contributions to the plan satisfy § 414(h). A determination letter does not express an opinion on whether contributions made to a plan treated as a governmental plan defined in § 414(d) constitute employer contributions under § 414(h)(2).

Other limits on scope of determination letter

.07 A favorable determination letter does not provide reliance for purposes of § 404, § 412, § 430, § 431, and § 432 with respect to whether an interest rate (or any other actuarial assumption) is reasonable. A favorable determination letter does not constitute a determination with respect to whether any requirements of § 414(r), relating to whether an employer is operating qualified separate lines of business, are satisfied.

Affiliated service groups, leased employees and partial terminations

.08 Applicants may elect that the letter include a determination as to whether: (1) the employer is a member of an affiliated service group within the meaning of § 414(m), (2) leased employees are deemed employees of the employer under the meaning of § 414(n), and/or

(3) a partial termination has occurred with respect to the plan, and if so, its impact on plan qualification.

Publication 794

.09 Publication 794, Favorable Determination Letter, contains other information regarding the scope of a determination letter, including the requirement that all information submitted with the application be retained as a condition of reliance. In addition, the specific terms of each letter may further define its scope and the extent to which it may be relied upon. Publication 794 can also be found at http://www.irs.gov/ Forms-&amp;-Pubs.

SECTION 6. WHAT IS THE GENERAL PROCEDURE FOR REQUESTING DETERMINATION LETTERS?

Scope

.01 This section contains procedures that are generally applicable to all determination letter requests. Additional procedures for specific requests are contained in sections 7 through 16.

Qualified trusteed plans Bulletin No. 2014-1

.02 A trust created or organized in the United States and forming part of a pension, profit-sharing, stock bonus or annuity plan of an employer for the exclusive benefit of its employees or their beneficiaries that meets the requirements of § 401(a) is a Sec. 6.02 207 January 2, 2014

qualified trust and is exempt from federal income tax under § 501(a) unless the exemption is denied under § 502, relating to feeder organizations, or § 503, relating to prohibited transactions, if, in the latter case, the plan is one described in § 503(a)(1)(B).

Qualified nontrusteed annuity plans

.03 A nontrusteed annuity plan that meets the applicable requirements of § 401(a) and other additional requirements as provided under § 403(a) and § 404(a)(2) (relating to deductions of employer contributions for the purchase of retirement annuities) qualifies for the special tax treatment under § 404(a)(2), and the other sections of the Code, if the additional provisions of such other sections are also met.

Complete information required

.04 An applicant requesting a determination letter must file the material required by this revenue procedure with Employee Plans Determinations (EP Determinations) at the address in section 6.15. The filing of the application, when accompanied by all information and documents required by this revenue procedure, will generally serve to provide the Service with the information required to make the requested determination. However, in making the determination, the Service may require the submission of additional information. Information submitted to the Service in connection with an application for determination may be subject to public inspection to the extent provided by § 6104. The applicant must include Employee Plans Compliance Resolution System documentation for any closing agreement or compliance statement (including Appendix C, applicable schedules and copies of corrective amendments) issued or applied for during the current 5-year or 6-year remedial amendment cycle, if any, with the determination letter application.

Complete copy of plan and trust instrument and applicable amendments required

.05 In addition to a copy of the plan and trust documents and other material required by the application, the determination letter application must also include a copy of all signed and dated interim and other plan amendments adopted or effective during the plan's current remedial amendment cycle (other than such amendments adopted on behalf of the employer by the practitioner that sponsors the employer's VS plan) even if these amendments are dated earlier than a previous determination letter issued with respect to the plan.

In order for documents to be properly scanned, documents submitted should not be stapled or bound and the application form should be prepared using Courier 10 point font.

Section 9 of Rev. Proc. 2014-4 applies

.06 Section 9 of Rev. Proc. 2014-4 is generally applicable to requests for determination letters under this revenue procedure.

Separate application for each single § 414(l) plan

.07 A separate application is required for each single plan within the meaning of § 414(l). This requirement does not pertain to applications regarding the qualified status of group trusts.

Prior letters

.08 If the plan has received a favorable determination letter in the past, the application must include a copy of the latest determination letter. If a prior determination letter is not available, an explanation must be included with the application, and the employer must include a copy of the prior plan or adoption agreement, including the opinion or advisory letter, if applicable.

Plans involving mergers

If the submitted plan is the result of a merger of two or more plans, include a copy of the prior determination letter for all the plans that combined to result in the merged plan. If a prior determination letter is not available for any such plan involved in a merger, an explanation must be included with the application, and the employer must include a copy of the prior plan document and adoption agreement, including the opinion or advisory letter, if applicable. For each plan involved in a merger, provide all of the amendments adopted after the date of the most recent determination, opinion or advisory letter for each of the merged plans, as well as the prior plan document.

User fees

.09 The appropriate user fee, if applicable, must be paid according to the procedures of Rev. Proc. 2014-8, page 242, this Bulletin. Form 8717, User Fee for Employee

Sec. 6.09
January 2, 2014

Plan Determination Letter Request, must accompany each determination letter request by an authorized representative. If, however, the user fee for a determination letter request is paid through www.pay.gov, submit a copy of the payment confirmation in lieu of Form 8717. If the criteria for the user fee exemption are met in accordance with Notice 2011-86, 2011-45 I.R.B. 698, the certification on Form 8717 must be signed. Stamped signatures are not acceptable.

Interested party notification and comment

.10 Before filing an application, the applicant requesting a determination letter must satisfy the requirements of section 3001(a) of ERISA, and § 7476(b)(2) of the Code and the regulations thereunder, which provide that an applicant requesting a determination letter on the qualified status of certain retirement plans must notify interested parties of such application. The general rules of the Service with respect to notifying interested parties of requests for determination letters relating to the qualification of plans involving §§ 401 and 403(a) are set out below in sections 17 and 18 of this revenue procedure.

Contrary authority must be distinguished

.11 If the application for determination involves an issue where contrary authorities exist, failure to disclose or distinguish such significant contrary authorities may result in requests for additional information, which will delay action on the application.

Employer/employee relationship

.12 The Service ordinarily does not make determinations regarding the existence of an employer-employee relationship as part of its determination on the qualification of a plan, but relies on the applicant's representations or assumptions, stated or implicit, regarding the existence of such a relationship. The Service will, however, make a determination regarding the existence of an employer-employee relationship when so requested by the applicant. In such cases, the application with respect to the qualification of the plan should be filed in accordance with the provisions of this revenue procedure, contain the information and documents in the instructions to the application, and be accompanied by a completed Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, and any information and copies of documents the organization deems appropriate to establish its status. The Service may, in addition, require further information that it considers necessary to determine the employment status of the individuals involved or the qualification of the plan. After the employer-employee relationships have been determined, EP Determinations may issue a determination letter as to the qualification of the plan.

Incomplete applications returned

.13 If an applicant requesting a determination letter does not comply with all the required provisions of this revenue procedure, EP Determinations, in its discretion, may return the application and point out to the applicant those provisions which have not been met. The failure to provide information required by an application, including any supplemental information required by the instructions for the application, may result in the application being returned to the applicant as incomplete. The request may also be returned pursuant to Rev. Proc. 2014-8 if the correct user fee is not attached. If such a request is returned to the applicant, the 270-day period described in § 7476(b)(3) will not begin to run until such time as the provisions of this section have been satisfied. Applications must be submitted with the current version of an application form. If an application is not submitted with the current version of the appropriate application form, the application will be returned.

Effect of failure to disclose material fact

.14 The Service may determine, based on the application form, the extent of review of the plan document. A failure to disclose a material fact or misrepresentation of a material fact on the application may adversely affect the reliance that would otherwise be obtained through issuance by the Service of a favorable determination letter. Similarly, failure to accurately provide any of the information called for on any form required by this revenue procedure may result in no reliance.

Where to file requests

.15 Requests for determination letters are to be addressed to EP Determinations at the following address:

Internal Revenue Service P.O. Box 12192 Covington, KY 41012-0192

Requests shipped by Express Mail or a delivery service should be sent to:

Internal Revenue Service 201 West Rivercenter Blvd. Attn: Extracting Stop 312 Covington, KY 41011

Determination letter applications will not be accepted via fax.

Submission of related plans

.16 If applications for two or more plans of the same employer are submitted together, each application should include a cover letter that identifies the name of the employer and the plan numbers and employer identification numbers of all the related plans submitted together. The Service will determine whether these applications will be worked simultaneously.

Withdrawal of requests

.17 The applicant's request for a determination letter may be withdrawn by a written request at any time prior to the issuance of a final adverse determination letter. If an appeal to a proposed adverse determination letter is filed, a request for a determination letter may be withdrawn at any time prior to the forwarding of the proposed adverse action to the Chief, Appeals Office. In the case of a withdrawal, the Service will not issue a determination of any type. A failure to issue a determination letter as a result of a withdrawal will not be considered a failure of the Secretary or his delegate to make a determination within the meaning of § 7476. However, the Service may consider the information submitted in connection with the withdrawn request in a subsequent examination. Generally, the user fee will not be refunded if the application is withdrawn.

Right to status conference

.18 An applicant for a determination letter has the right to a have a conference with the EP Determinations Manager concerning the status of the application if the application has been pending at least 270 days. The status conference may be by phone or in person, as mutually agreed upon. During the conference, any issues relevant to the processing of the application may be addressed, but the conference will not involve substantive discussion of technical issues. No tape, stenographic, or other verbatim recording of a status conference may be made by any party. Subsequent status conferences may also be requested if at least 90 days have passed since the last preceding status conference.

How to request status conference

.19 A request for a status conference with the EP Determinations Manager is to be made in writing and is to be sent to the specialist assigned to review the application or, if the applicant does not know who is reviewing the application, to the EP Determinations Manager at the address in section 6.15. If, pursuant to section 15, the application for a determination letter has been submitted to Employee Plans Technical (EP Technical) together with a request for a waiver of minimum funding, the request for a status conference should be sent to the address in section 15.03. In this case, the right to a status conference will be with the EP Technical Manager or designee.

### SECTION 7. WHEN DETERMINATION LETTERS ARE ISSUED

Requesting Determination Letters

.01 This section 7 contains the procedures for requesting determination letters for individually designed plans in the following circumstances: (1) Initial qualification.

(2) Amendment and restatement subsequent to initial qualification.

(3) Plan termination.

Forms

.02 A determination letter request for the items listed in section 7.01 is made by filing the appropriate form according to the instructions to the form and any prevailing revenue procedures, notices, and announcements.

(1) Form 5300, Application for Determination for Employee Benefit Plan, must be filed to request a determination letter for individually designed plans, including collectively bargained plans and M&amp;P plans that have made modifications.

(2) Form 5309, Application for Determination of Employee Stock Ownership Plan, must be filed as an attachment with a Form 5300, in order to request a determination whether the plan is an ESOP under § 409 or § 4975(e)(7).

(3) Form 5310, Application for Determination for Terminating Plan (Also see section 12 of this revenue procedure for additional requirements pertaining to applications for determination upon plan termination.)

(4) Form 8905, Certification of Intent to Adopt a Pre-approved Plan, executed before the end of the employer's 5-year remedial amendment cycle as determined under Part III of Rev. Proc. 2007-44, if applicable.

(5) Form 8717, User Fee for Employee Plan Determination Letter Request (or the payment confirmation from www.pay.gov as described in section 6.09).

(6) Form 2848, Power of Attorney and Declaration of Representative.

(7) Form 8821, Tax Information Authorization.

Timing

.03 All determination letter submissions must be submitted timely under the procedures set forth in Rev. Proc. 2007-44.

Applicants are reminded that an off-cycle application will not be converted to an on-cycle application once the on-cycle submission period begins. Generally, if an off- cycle application is not reviewed before the beginning of the on-cycle period, the application will be returned with the user fee during the on-cycle period.

Application must include copy of plan and amendments

.04 The plan, all interim and other plan amendments adopted or effective during the plan's current remedial amendment cycle must be included in the application package along with a copy of the restated plan and trust instrument. If the plan did not receive a favorable determination letter, all plan documents and amendments for the Cumulative List applicable for the plan's prior submission period must be submitted. If the plan relied upon an opinion or advisory letter with respect to its prior remedial amendment cycle, the plan, adoption agreements and all applicable amendments for the plan's prior submission period must also be submitted.

In general, a determination letter may not be relied upon for any period preceding the beginning of the remedial amendment cycle for which the letter is issued. Thus, for example, if an application for a determination letter includes a plan amendment that was

Sec. 7.04
January 2, 2014

effective before the beginning of the plan's current remedial amendment cycle, the
determination letter may not be relied upon with respect to the effect of the amendment
for the period preceding the beginning of the cycle.

The Service has the discretion to request copies of any amendments during its review
of a plan.

.05 Individually designed plans must be restated when they are submitted for
determination letter applications, except for terminating plans.

.06 If, pursuant to Rev. Proc. 2007-44, an election has been made for related
entities (as described under section 10 of that revenue procedure) to be on the same
cycle, each application must include a cover letter that identifies the name of each
member of the controlled group and/or employer within the affiliated service group,
and the plan numbers and employer identification numbers of all the related plans
submitted together. When a controlled group election has been made for multiple plans
to be on the same cycle, the Service will determine whether these applications will be
worked simultaneously.

.07 The Service will consider § 414(x) in issuing determination letters for
individually designed plans that consist of a defined benefit plan and a qualified cash
or deferred arrangement. A § 414(x) combined plan sponsor must submit two Forms
5300 and two applicable user fees.

# SECTION 8. EMPLOYER RELIANCE ON M&P AND VOLUME SUBMITTER PLANS

Scope

.01 Rev. Proc. 2011-49 describes the procedures for requesting opinion letters and
advisory letters on M&P and VS plans and the extent to which adopting employers of
such plans may rely on favorable opinion or advisory letters without having to request
individual determination letters.

## Modifications to Revenue Procedure 2011-49

.02 Rev. Proc. 2011-49 is hereby modified as follows with respect to determination
letter applications filed on or after May 1, 2012:

(1) An adopting employer of an M&P plan (whether standardized or nonstandardized)
may not apply for a determination letter for the plan on Form 5307.

(2) An adopting employer of a VS plan may not apply for a determination letter for the
plan on Form 5307 unless the employer has modified the terms of the approved plan and
the modifications are not so extensive as to cause the plan to be treated as an individually
designed plan.

(3) An application for a determination letter for an M&P or VS plan that is filed on
Form 5300 is treated as an application for an individually designed plan, requiring the plan
to be restated to take into account the Cumulative List in effect when the application is
filed, unless the employer is filing the application solely for one or more of the following
reasons:

(a) The employer has modified the terms of the M&P plan by adding overriding
language necessary to coordinate the application of the limitations of section 415 or the
requirements of section 416 because the employer maintains multiple plans.

(b) The plan is a pension plan and the normal retirement age under the plan is lower
than 62. In this case, a determination letter is required for reliance that the plan's normal
retirement age satisfies the requirements of section 1.401(a)-1(b)(2) of the regulations.

## Restatements required

Controlled group elections
pursuant to Revenue Procedure
2007-44

## § 414(x) combined plans

(c) The employer seeks a determination as to whether there has been a partial
termination of the plan, the employer is a member of an affiliated service group under
section 414(m), or the employer is a recipient of services of leased employees under
section 414(n).

(d) The plan is a multiple employer plan.

(e) The employer is required to obtain a determination letter to comply with published
procedures of the Service (for example, in conjunction with a request for a minimum
funding waiver).

In the situations described in subparagraphs (a) through (e), the plan does not have to
be restated for the Cumulative List in effect when the application is filed and will be
reviewed on the basis of the Cumulative List that was considered in issuing the opinion
or advisory letter for the plan. An employer that submits an application for a determination
letter for an M&P or VS plan on Form 5300 for one or more of the reasons described in
subparagraphs (a) through (e) should identify the reason in a cover letter to the application
and include a copy of the opinion or advisory letter.

Section 9 of this revenue procedure describes the procedures for requesting determi-
nation letters on VS plans where the employer has made limited modifications to the
language of the approved specimen plan.

Reliance equivalent to
determination letter

.03 If an employer can rely on a favorable opinion or advisory letter pursuant to
Section 19 of Rev. Proc. 2011-49, as modified by this revenue procedure, the opinion
or advisory letter shall be equivalent to a favorable determination letter. For example,
the favorable opinion or advisory letter shall be treated as a favorable determination
letter for purposes of section 21 of this revenue procedure, regarding the effect of a
determination letter, and section 5.01(4) of Rev. Proc. 2013-12, 2013-4 I.R.B. 313, as
updated, regarding the definition of "favorable letter" for purposes of the Employee
Plans Compliance Resolution System.

## SECTION 9. DETERMINATION LETTER FILING PROCEDURES FOR VOLUME SUBMITTER PLANS

Scope

.01 This section contains procedures for requesting determination letters for adopting
employers of VS plans where the employer has made limited modifications to the
approved specimen plan.

### Determination letter for adoption of volume submitter plan

.02 An application filed on Form 5307, must include any interim plan amendments
unless the VS plan authorizes the practitioner to amend on behalf of the adopting
employer. The Service may, however, request evidence of adoption of interim amend-
ments during the course of its review of a particular plan. With respect to determination
letters for adopting employers of VS plans:

(1) An application for a determination letter for an employer's adoption of an
approved VS plan where the employer has made limited modifications to the language of
the approved specimen plan must be sent to the address provided in section 6.15. For VS
plans involved in plan mergers, see section 6.08 of this procedure.

(2) The application for a determination letter must include the following:

(a) Form 8717, User Fee for Employee Plan Determination Letter Request (or the
payment confirmation from www.pay.gov as described in section 6.09);

(b) Form 5307, Application for Determination for Adopters of Modified Volume
Submitter (VS) Plans;

(c) Form 2848, Power of Attorney and Declaration of Representative, or other
written authorization allowing the VS practitioner to act as a representative of the
employer with respect to the request for a determination letter;

(d) Form 8905, Certification of Intent to Adopt a Pre-approved Plan, executed
before the end of the employer's 5-year remedial amendment cycle as determined under
Part III of Rev. Proc. 2007-44, if applicable;

(e) A copy of the most recent advisory letter for the practitioner's VS specimen plan;

(f) A complete copy of the plan and trust instrument and, if applicable, a copy of
the completed adoption agreement;

(g) A written representation (signature optional) made by the VS practitioner
which explains how the plan and trust instrument differ from the approved specimen plan,
describing the location, nature and effect of each deviation from the language of the
approved specimen plan;

(h) A copy of the plan's latest favorable determination letter, if applicable;

(i) Applications filed on Form 5307 for VS plans where the employer has made
limited modifications to the language of the approved specimen plan that do not authorize
the practitioner to amend on behalf of the adopting employer must include any interim
amendments that were adopted for qualification changes on the applicable Cumulative
List used in reviewing and approving the underlying VS plan; and

(j) Any other information or material that may be required by the Service.

(3) Deviations from the language of the approved specimen plan will be evaluated
based on the extent and complexities of the changes. If the changes are determined not to
be compatible with the VS program, the Service will require the applicant to file Form
5300 and pay the higher user fee. See also, Rev. Proc. 2007-44, section 19.

(4) An employer will not be treated as having adopted a VS plan if the employer has
signed or otherwise adopted the plan prior to the date on the VS specimen plan's advisory
letter. In this case, the determination letter application for the employer's plan may not be
filed on Form 5307 and will not be eligible for a reduced user fee. A determination letter
application for a VS plan must be based on the approved VS specimen plan with any
applicable modifications. See section 19.03 in Rev. Proc. 2011-49.

Timing of Determination Letter
Applications for Adopting
Employers of Pre-Approved
Plans

.03 In accordance with Part IV of Rev. Proc. 2007-44, adopting employers of M&P
and VS plans have a six-year remedial amendment cycle. The deadline for an
adopting employer to adopt the approved M&P or VS plan closes with the two-
year window at the end of the plan's remedial amendment cycle. An adopting
employer of a modified VS plan who desires to obtain a determination letter for
reliance must submit within the two-year window. Applications may only be submitted
during the two-year window. Applications submitted outside of the two-year window
will be returned.

# SECTION 10. MULTIPLE EMPLOYER PLANS

Scope

.01 This section contains procedures for applications filed with respect to plans
described in § 413(c). A plan is not described in § 413(c) if all the employers
maintaining the plan are members of the same controlled group or affiliated service
group under § 414(b), (c) or (m).

Sec. 10.01
January 2, 2014

Options to file for the plan only or for both the plan and employers maintaining the plan

.02 A determination letter applicant for a multiple employer plan can request either (1) a letter for the plan in the name of the controlling member or (2) a letter for the plan in the name of the controlling member and a letter for each employer maintaining the plan with respect to whom a separate Form 5300 is filed. (1) An applicant requesting a letter for the plan submits one Form 5300 application for the plan in the name of the controlling member, either including or omitting the design- based safe harbor questions. The user fee for a single employer plan will apply. An employer maintaining a multiple employer plan can rely on a favorable determination letter issued for the plan except with respect to the requirements of §§ 401(a)(4), 401(a)(26), 401(l), 410(b) and 414(s), and, if the employer maintains or has ever maintained another plan, §§ 415 and 416. (2) An applicant requesting a letter for the plan and for an employer maintaining the plan must submit the filing required in (1) above as well as a separate Form 5300 application for each employer requesting a separate letter. The user fee for the application will be determined under the user fee schedules for multiple employer plans in section 6.05 of Rev. Proc. 2014-8.

Where to file

.03 The complete application, including all Forms 5300 for employers maintaining the plan who request separate letters must be filed as one submission with EP Determinations. The application is to be sent to the address in section 6.15.

Determination letter sent to each employer who files Form 5300

.04 The Service will mail a determination letter to each employer maintaining the plan for whom a separate Form 5300 has been filed.

Addition of employers

.05 An employer may continue to rely on a favorable determination letter after another employer commences participation in the plan, regardless of whether the first employer's reliance is based on its own letter or the letter issued for the plan and regardless of whether an application for a determination letter for the new employer is filed. An application for a determination letter that takes into account the addition of such other employer should include a completed Form 5300 for the plan in the name of the controlling member on the Form 5300 filed pursuant to section 10.02 above, and a supplemental Form 5300 for each new employer who desires a separate determination letter. The Service will send the determination letter only to the applicant and the new employers. However, a new employer that joins a multiple employer plan after the existing multiple employer plan was timely submitted in Cycle B (the applicable cycle as described in section 10 of Rev. Proc. 2007-44), will be subject to the rules under Rev. Proc. 2007-44, including the off-cycle filing rules under section 14 of that revenue procedure.

Pre-approved multiple employer plans

.06 A pre-approved plan that is submitted on a Form 5300 because it is a multiple employer plan will be reviewed on the basis of the Cumulative List that was used to review the underlying plan.

SECTION 11. RESERVED SECTION 12. TERMINATION OR DISCONTINUANCE OF CONTRIBUTIONS; NOTICE OF MERGERS, CONSOLIDATIONS, ETC.

Reserved

Scope

.01 This section contains procedures for requesting determination letters involving plan termination or discontinuance of contributions. This section also contains procedures regarding required notice of merger, consolidation, or transfer of assets or liabilities. .02 Required Forms

Forms

Bulletin No. 2014-1

Sec. 12.02 215 January 2, 2014

(1) Form 5310, Application for Determination for Terminating Plan, is filed by plans
other than multiemployer plans covered by the insurance program of the Pension Benefit
Guaranty Corporation (PBGC).

(2) Form 5300, Application for Determination of Employee Benefit Plan, is filed in the
case of a multiemployer plan covered by PBGC insurance.

(3) Form 6088, Distributable Benefits from Employee Pension Benefit Plans, is also
required of a sponsor or plan administrator of a defined benefit plan or an underfunded
defined contribution plan who files an application for a determination letter regarding plan
termination. For collectively bargained plans, a Form 6088 is required only if the plan
benefits employees who are not collectively bargained employees within the meaning of
§ 1.410(b)-6(d). A separate Form 6088 is required for each employer employing such
employees. See the instructions for Form 6088 for information required to be submitted
along with the form, including a statement explaining how the present values were
determined.

(4) Form 5310-A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan
Assets or Liabilities - Notice of Qualified Separate Lines of Business, if required,
generally must be filed not later than 30 days before merger, consolidation or transfer of
assets and liabilities. The filing of Form 5310-A will not result in the issuance of a
determination letter.

(5) Form 8905, Certification of Intent to Adopt a Pre-approved Plan, must be filed to
establish the employer's eligibility for the 6-year remedial amendment cycle where the
employer executed the form by the end of the employer's 5-year remedial amendment
cycle as determined under Part III of Rev. Proc. 2007-44.

(6) Form 8717, User Fee for Employee Plan Determination Letter Request (or the
payment confirmation from www.pay.gov as described in section 6.09).

(7) Form 2848, Power of Attorney and Declaration of Representative, or other written
authorization allowing the VS practitioner to act as a representative of the employer with
respect to the request for a determination letter. If applicable, submit Form 8821, Tax
Information Authorization.

## Supplemental information

.03 The application for a determination letter involving plan termination must also
include any supplemental information or schedules required by the forms or form
instructions. For example, the application must include copies of all records of actions
taken to terminate the plan (such as a resolution of the board of directors) and a schedule
providing certain information regarding employees who separated from vesting service
with less than 100% vesting.

In cases involving the termination of plans that contain a § 401(h) feature, the cover
letter of the submission must reference the § 401(h) feature and make clear that this
feature is part of the termination application. The cover letter must specifically state the
location of plan provisions that relate to the § 401(h) feature.

Compliance with Title IV of
ERISA

.04 In the case of plans subject to Title IV of ERISA, a favorable determination
letter issued in connection with a plan's termination is conditioned on approval that the
termination is a valid termination under Title IV of ERISA. Notification by PBGC that
a plan may not be terminated will be treated as a material change of fact.

Termination prior to time for
amending for change in law

.05 A plan that terminates after the effective date of a change in law, but prior to the
date that amendments are otherwise required, must be amended to comply with the
applicable provisions of law from the date on which such provisions become effective
with respect to the plan. Because such a terminated plan would no longer be in existence
by the required amendment date and therefore could not be amended on that date, such
plan must be amended in connection with the plan termination to comply with those

provisions of law that become effective with respect to the plan on or before the date of
plan termination. (Such amendments include any amendments made after the date of plan
termination that were required in order to obtain a favorable determination letter.) In
addition, annuity contracts distributed from such terminated plans also must meet all the
applicable provisions of any change in law. See also section 8 of Rev. Proc. 2007-44.

An application will be deemed to be filed in connection with plan termination if it is
filed no later than the later of (i) one year from the effective date of the termination, or (ii)
one year from the date on which the action terminating the plan is adopted. However, in
no event can the application be filed later than twelve months from the date of distribution
of substantially all plan assets in connection with the termination of the plan.

.06 A terminating plan generally does not have to be restated. However, see section
7.05 and .05 of this section above.

## Restatement not required for terminating plan

### SECTION 13. GROUP TRUSTS

#### Scope

.01 This section provides special procedures for requesting a determination letter on
the qualified status of a group trust under Rev. Rul. 81-100, as clarified and modified
by Rev. Rul. 2004-67 and Rev. Rul. 2011-1, 2011-2 I.R.B. 251.

#### Required information

.02 A request for a determination letter on the status of a group trust is made by
submitting a Form 5316, Application for Group or Pooled Trust Ruling, demonstrating
how the group trust satisfies the criteria listed in Rev. Rul. 2011-1, together with the
trust instrument and related documents. Rev. Rul. 2004-67 extends the ability to
participate in group trusts to eligible governmental plans under § 457(b) and clarifies
the ability of certain individual retirement accounts under § 408 to participate. Rev.
Rul. 2011-1 extends the ability to participate in group trusts to custodial accounts
under § 403(b)(7), retirement income accounts under § 403(b)(9), and governmental
retiree benefit plans under § 401(a)(24). There are two model amendments in Rev. Rul.
2011-1. Amendment 1 is for a group trust that received a determination letter from the
Service prior to January 10, 2011, that the group trust satisfies Rev. Rul. 81-100, but
that does not satisfy the separate account requirement of paragraph (6) of the holding
of Rev. Rul. 2011-1. Amendment 2 is for a group trust that received a determination
letter from the Service prior to January 10, 2011, that the group trust satisfies Rev.
Rul. 81-100, as modified by Rev. Rul. 2004-67, and that intends to permit custodial
accounts under § 403(b)(7), retirement income accounts under § 403(b)(9), or
§ 401(a)(24) governmental retirement plans to participate in the group trust.

Forms

.03 Required Forms

(1) Form 8717, User Fee for Employee Plan Determination Letter Request (or the
payment confirmation from www.pay.gov as described in section 6.09).

(2) Form 2848, Power of Attorney and Declaration of Representative, or other written
authorization allowing the VS practitioner to act as a representative of the employer with
respect to the request for a determination letter. If applicable, submit Form 8821, Tax
Information Authorization.

(3) Form 5316, Application for Group or Pooled Trust Ruling.

## SECTION 14. AFFILIATED SERVICE GROUPS; LEASED EMPLOYEES

Scope

.01 This section provides procedures for determination letter requests on affiliated
service group status under § 414(m), and whether an employee is a leased employee
and is deemed to be an employee of the recipient employer for qualification purposes
under § 414(n).

Employer must request the
determination under § 414(m)
or § 414(n)

.02 Generally, a determination letter will indicate whether the employer is a member
of an affiliated service group under § 414(m) or whether an employee is a leased
employee and is deemed to be an employee of the recipient employer under
§ 414(n) only if the employer requests such determination, and submits with the
determination letter application the information specified in section 14.06 or section
14.07 below.

Forms

.03 Form 5300 is submitted for a request on affiliated service group status or leased
employee status. Form 5307 cannot be used for this purpose.

Employer is responsible for
determining status under
§ 414(m) and § 414(n)

.04 An employer is responsible for determining at any particular time whether it is a
member of an affiliated service group and, if so, whether its plan(s) continues to meet
the requirements of § 401(a) taking into account § 414(m). An employer or plan
administrator is also responsible for taking action relative to the employer's qualified
plan if that employer becomes, or ceases to be, a member of an affiliated service
group. An employer that is the recipient of services of leased employees within the
meaning of § 414(n) is also responsible for determining at any particular time whether
a leased employee is deemed to be an employee of the recipient for qualified plan
purposes.

Pre-approved plans

.05 An employer that has adopted a pre-approved plan and wants a determination
with respect to § 414(m) or § 414(n) must submit the information required by section
14.06 or section 14.07 of this revenue procedure and any other materials necessary to
make a determination along with Form 5300. When an employer requests a
determination regarding affiliated service group status or leased employees, the plan
will be reviewed on the basis of the Cumulative List that was used to review the
underlying pre-approved plan.

Required information for
§ 414(m) determination

.06 A determination letter will be issued with respect to § 414(m) only if the employer
requests such a determination and the application includes:

(1) A description of the nature of the business of the employer, specifically whether it
is a service organization or an organization whose principal business is the performance
of management functions for another organization, including the reasons therefor;

(2) The identification of other members (or possible members) of the affiliated service
group;

(3) A description of the business of each member (or possible member) of the affiliated
service group, describing the type of organization (corporation, partnership, etc.) and
indicating whether the member is a service organization or an organization whose
principal business is the performance of management functions for the other group
member(s);

(4) The ownership interests between the employer and the members (or possible
members) of the affiliated service group (including ownership interests as described in
§ 414(m)(2)(B)(ii) or §414(m)(6)(B));

(5) A description of services performed for the employer by the members (or possible
members) of the affiliated service group, or vice versa (including the percentage of each
member's (or possible member's) gross receipts and service receipts provided by such
services, if available, and data as to whether such services are a significant portion of the
member's business) and whether, as of December 13, 1980, it was not unusual for the
services to be performed by employees of organizations in that service field in the United
States;

(6) A description of how the employer and the members (or possible members) of the
affiliated service group associate in performing services for other parties;

(7) In the case of a management organization under § 414(m)(5):

(a) A description of the management functions, if any, performed by the employer
for the member(s) (or possible member(s)) of the affiliated service group, or received by
the employer from any other members (or possible members) of the group (including data
explaining whether the management functions are performed on a regular and continuous
basis) and whether or not it is unusual for such management functions to be performed by
employees of organizations in the employer's business field in the United States;

(b) If management functions are performed by the employer for the member (or
possible members) of the affiliated service group, a description of what part of the
employer's business constitutes the performance of management functions for the member
(or possible member) of the group (including the percentage of gross receipts derived from
management activities as compared to the gross receipts from other activities); and

(8) A copy of any ruling issued by the Service on whether the employer is an affiliated
service group; a copy of any prior determination letter that considered the effect of §
414(m); and, if known, a copy of any such ruling or determination letter issued to any
other member (or possible member) of the same affiliated service group, accompanied by
a statement as to whether the facts upon which the ruling or determination letter was based
have changed.

Required information for
§ 414(n) determination

.07 A determination letter will be issued with respect to § 414(n) only if the employer
requests such a determination and the application includes:

(1) A description of the nature of the business of the recipient organization;

(2) A copy of the relevant leasing agreement(s);

(3) A description of the function of all leased employees within the trade or business of
the recipient organization (including data as to whether all leased employees are perform-
ing services on a substantially full-time basis);

(4) A description of facts and circumstances relevant to a determination of whether such
leased employees' services are performed under primary direction or control by the
recipient organization (including whether the leased employees are required to comply
with instructions of the recipient about when, where, and how to perform the services,
whether the services must be performed by particular persons, whether the leased
employees are subject to the supervision of the recipient, and whether the leased employ-
ees must perform services in the order or sequence set by the recipient); and

(5) If the recipient organization is relying on any qualified plan(s) maintained by the
employee leasing organization for purposes of qualification of the recipient organization's
plan, a description of such plan(s) (including a description of the contributions or benefits
provided for all leased employees which are attributable to services performed for the
recipient organization, plan eligibility, and vesting.)

SECTION 15. WAIVER OF
MINIMUM FUNDING
Scope

.01 This section provides procedures with respect to defined contribution plans for
requesting a waiver of the minimum funding standard account and requesting a
determination letter on any plan amendment required for the waiver.

Applicability of Rev. Proc.
2004-15

.02 The procedures in Rev. Proc. 2004-15, 2004-1 C.B. 490, apply to the request
for a waiver of the minimum funding requirement. Section 2 of that revenue procedure
contains the procedures for obtaining waivers of the minimum funding standards in the
instance of defined benefit plans. In order to provide maximum flexibility in requesting
a waiver for a defined contribution pension plan, section 3 of that revenue procedure
contains three alternative methods as described more fully in Rev. Proc. 2004-15.

## Waiver request submitted to EP Technical

.03 The first two alternatives involve (1) a waiver ruling only, without submission of a
plan amendment, and (2) a waiver ruling only, with submission of a plan amendment.
Under these first two procedures, requests for waivers must be submitted to:

Employee Plans
Internal Revenue Service
Commissioner, TE/GE
Attention: SE:T:EP:RA
P.O. Box 27063
McPherson Station
Washington, D.C. 20038

In both cases, the applicant must satisfy the requirements of section 2 of Rev. Proc.
2004-15, other than the parts applicable only to defined benefit plans.

If a plan amendment is not submitted or is not already part of a plan, the Service will
supply an amendment which will, if adopted, satisfy section 3 of Rev. Rul. 78-223,
1978-1 C.B. 125. The waiver will be conditioned upon the plan being amended by
adoption of that amendment, within a reasonable period of time, and will contain a caveat
stating that the ruling is not a ruling as to the effect the plan provision may have on the
qualified status of the plan. The applicant may request reconsideration within 60 days of
the date of the letter if the amendment is inappropriate, by submitting a letter to the above
address.

If the request for the waiver is submitted along with a plan amendment, the plan
provisions necessary to satisfy section 3 of Rev. Rul. 78-223 must be included. All
waivers issued pursuant to this alternative will contain a caveat indicating that the ruling
is not a ruling as to the effect any plan provision may have on the qualified status of the
plan.

Waiver and determination letter
request submitted to EP
Technical

.04 The third alternative is a request for a waiver ruling and a determination letter
request. Both requests must be submitted by the applicant to EP Technical at the address
set forth in section 15.03 where it will be treated as if it had been submitted as a request
for technical advice from the Determinations Manager. The request must:

(1) satisfy all the procedural requirements of 3.03 of Rev. Proc. 2004-15;

(2) include a completed Form 5300 and all necessary documents, plan amendments and
information required by the Form 5300 and Rev. Proc. 2004-15 for approval;

(3) indicate which Area Office has audit jurisdiction over the return; and

(4) submit the user fee for both requests to EP Technical.

In addition, the procedures for notice and comment by interested parties, contained in
sections 17, 18 and 19 of this revenue procedure, and the notice and comment procedures
provided in section 2.02 of Rev. Proc. 2004-15 must be satisfied. Comments will be
forwarded to the Determinations Office that is considering the determination letter request
for the plan amendments.

Handling of the request

.05 The waiver request described in section 15.04 above will be handled by EP
Technical as follows:

(1) The waiver request and supporting documents will be forwarded to EP Technical,
SE:T:EP:RA:T, which will treat the request as a technical advice on the qualification issue
with respect to the plan provisions necessary to satisfy section 3 of Rev. Rul. 78-223.

(2) The appropriate Determinations Office will be notified of the request. In order not
to delay the processing of the request, all materials relating to the determination letter

request will be forwarded by EP Technical to the Determinations Manager for consider-
ation while the technical advice request is completed.

(3) EP Technical will consider both issues. If a waiver is to be granted and if EP
Technical believes that qualification of the plan is not adversely affected by the plan
amendment, the mandatory technical advice memorandum will be issued to the Determi-
nations Manager. The Determinations Manager must decide within 10 working days from
the date of the technical advice memorandum either to furnish the applicant with the
technical advice memorandum and with a favorable advance determination letter, or to ask
for reconsideration of the technical advice memorandum. This request must be in writing.
An initial written notice of intent to make this request may be submitted within 10
working days of the date of the technical advice memorandum and followed by a written
request within 30 working days from the date of such written notice. If the Determinations
Manager does not ask for reconsideration of the technical advice memorandum within 10
working days, EP Technical will issue the waiver ruling. This ruling will not contain the
caveat described in section 3.02 of Rev. Proc. 2004-15.

## When waiver request should be submitted

.06 In the case of a plan other than a multiemployer plan, all waiver requests must be
submitted to the Service no later than the 15th day of the third month following the close
of the plan year for which the waiver is requested. The Service may not extend this
statutory deadline. A request for a waiver with respect to a multiemployer plan generally
must be submitted no later than the close of the plan year following the plan year for
which the waiver is requested.

In seeking a waiver with respect to a plan year that has not yet ended, the applicant may
have difficulty in furnishing sufficient current evidence in support of the request. For this
reason it is generally advisable that such advance request be submitted no earlier than 180
days prior to the end of the plan year for which the waiver is requested.

## SECTION 16. SECTION 401(h) AND § 420 DETERMINATION LETTERS

Scope

.01 This section provides procedures for requesting determination letters (i) with
respect to whether the requirements of § 401(h) are satisfied in a plan with retiree
medical benefit features and (ii) on plan language that permits, pursuant to § 420, the
transfer of assets in a defined benefit plan to a health benefit account described in
§ 401(h).

### Required information for § 401(h) determination

.02 EP Determinations will issue a determination letter that considers whether the
requirements of § 401(h) are satisfied in a plan with retiree medical benefit features
only if the plan sponsor requests such a determination and the sponsor's application
includes, in addition to the application forms and any other material required by this
revenue procedure, a cover letter that requests consideration of § 401(h). The cover
letter must specifically state that consideration is being requested with regard to
§ 401(h) in addition to other matters under § 401(a) and must specifically state the
location of plan provisions that satisfy the requirements of § 401(h). Part I of the checklist
in the Appendix of this revenue procedure may be used to identify the location of relevant
plan provisions.

Required information for
§ 420 determination

.03 EP Determinations will consider the qualified status of certain plan language
designed to comply with § 420 only if the plan sponsor requests such consideration with
Form 5300. The cover letter must specifically state (i) whether consideration is being
requested only with regard to § 420, or (ii) whether consideration is being requested with
regard to § 420 in addition to other matters under § 401(a). (If consideration of other
matters under § 401(a) is being requested, the application forms and other material
required by this revenue procedure must also be submitted.) The cover letter must
specifically state the location of plan provisions that satisfy each of the following

Sec. 16.03
January 2, 2014

requirements. Parts I and II of the checklist in the Appendix of this revenue procedure may
be used to identify the location of relevant plan provisions.

(1) The plan must include a health benefits account as described in § 401(h).

(2) The plan must provide that transfers shall be limited to transfers of "excess assets"
as defined in § 420(e)(2).

(3) The plan must provide that only one transfer may be made in a taxable year.
However, for purposes of determining whether the rule in the preceding sentence is met,
a plan may provide that a transfer will not be taken into account if it is a transfer that:

(a) Is made after the close of the taxable year preceding the employer's first taxable
year beginning after December 31, 1990, and before the earlier of (i) the due date
(including extensions) for the filing of the return of tax for such preceding year, or (ii) the
date such return is filed; and

(b) Does not exceed the expenditures of the employer for qualified current retiree
health liabilities for such preceding taxable year.

(4) The plan must provide that the amount transferred shall not exceed the amount
which is reasonably estimated to be the amount the employer will pay out (whether
directly or through reimbursement) of the health benefit account during the taxable year
of the transfer for "qualified current retiree health liabilities," as defined in § 420(e)(1).

(5) The plan must provide that no transfer will be made after December 31, 2021.

(6) The plan must provide that any assets transferred, and any income allocable to such
assets, shall be used only to pay qualified current retiree health liabilities for the taxable
year of transfer.

(7) The plan must provide that any amounts transferred to a health benefits account (and
income attributable to such amounts) which are not used to pay qualified current retiree
health liabilities shall be transferred back to the defined benefit portion of the plan.

(8) The plan must provide that the amounts paid out of a health benefits account will
be treated as paid first out of transferred assets and income attributable to those assets.

(9) The plan must provide that the accrued pension benefits for participants and
beneficiaries must become nonforfeitable as if the plan had terminated immediately prior
to the transfer (or in the case of a participant who separated during the 1-year period
ending on the date of transfer immediately before such separation). In the case of a transfer
described in § 420(b)(4) that relates to a prior year, the plan must provide that the accrued
benefit of a participant who separated from service during the taxable year to which such
transfer relates will be recomputed and treated as nonforfeitable immediately before such
separation.

(10) The plan must provide that a transfer will be permitted only if each group health
plan or arrangement under which health benefits are provided contains provisions satis-
fying § 420(c)(3). The plan must define "applicable employer cost", "cost maintenance
period", and "benefit maintenance period", as applicable, consistent with § 420(c)(3), as
amended. If applicable, the provisions of the plan must also reflect the transition rule in
§ 535(c)(2) of the Tax Relief Extension Act of 1999 (TREA '99). The plan may provide
that § 420(c)(3) is satisfied separately with respect to individuals eligible for benefits
under Title XVIII of the Social Security Act at any time during the taxable year and with
respect to individuals not so eligible.

(11) The plan must provide that transferred assets cannot be used for key employees (as
defined in § 416(i)(1)).

## PART II. INTERESTED PARTY NOTICE AND COMMENT

### SECTION 17. WHAT RIGHTS TO NOTICE AND COMMENT DO INTERESTED PARTIES HAVE?

#### Rights of interested parties

.01 Persons who qualify as interested parties under § 1.7476-1(b), have the following
rights:

(1) To receive notice, in accordance with section 18 below, that an application for an
advance determination will be filed regarding the qualification of plans described in
§§ 401, 403(a), 409 and/or 4975(e)(7);

(2) To submit written comments with respect to the qualification of such plans to the
Service;

(3) To request the Department of Labor to submit a comment to the Service on behalf
of the interested parties; and

(4) To submit written comments to the Service on matters with respect to which the
Department of Labor was requested to comment but declined.

#### Comments by interested parties

.02 Comments submitted by interested parties must be received by EP Determinations
by the 45th day after the day on which the application for determination is received by EP
Determinations. (However, see sections 17.03 and 17.04 for filing deadlines where the
Department of Labor has been requested to comment.) Such comments must be in writing,
signed by the interested parties or by an authorized representative of such parties (as
provided in section 9.02(11) of Rev. Proc. 2014-4), addressed to:

Internal Revenue Service
EP Determinations
Attn: Customer Service Manager
P.O. Box 2508
Cincinnati, OH 45202

Comments must contain the following information:

(1) The names of the interested parties making the comments;

(2) The name and taxpayer identification number of the applicant for a determination;

(3) The name of the plan, the plan identification number, and the name of the plan
administrator;

(4) Whether the parties submitting the comment are:

(a) Employees eligible to participate under the plan,

(b) Employees with accrued benefits under the plan, or former employees with
vested benefits under the plan,

(c) Beneficiaries of deceased former employees who are eligible to receive or are
currently receiving benefits under the plan,

(d) Employees not eligible to participate under the plan.

(5) The specific matters raised by the interested parties on the question of whether the
plan meets the requirements for qualification involving §§ 401 and 403(a), and how such
matters relate to the interests of the parties making the comment; and

(6) The address of the interested party submitting the comment (or if a comment is
submitted jointly by more than one party, the name and address of a designated repre-
sentative) to which all correspondence, including a notice of the Service's final determi-
nation with respect to qualification, should be sent. (The address designated for notice by
the Service will also be used by the Department of Labor in communicating with the
parties submitting a request for comment.) The designated representative may be one of
the interested parties submitting the comment or an authorized representative. If two or
more interested parties submit a single comment and one person is not designated in the
comment as the representative for receipt of correspondence, a notice of determination
mailed to any interested party who submitted the comment shall be notice to all the
interested parties who submitted the comment for purposes of § 7476(b)(5) of the Code.

.03 A request to the Department of Labor to submit to EP Determinations a comment
pursuant to section 3001(b)(2) of ERISA must be made in accordance with the following
procedures.

Requests for DOL to submit
comments

(1) The request must be received by the Department of Labor by the 25th day after the
day the application for determination is received by EP Determinations. However, if the
parties requesting the Department to submit a comment wish to preserve the right to
comment to EP Determinations in the event the Department declines to comment, the
request must be received by the Department by the 15th day after the day the application
for determination is received by EP Determinations.

(2) The request to the Department of Labor to submit a comment to EP Determinations
must:

(a) Be in writing;

(b) Be signed as provided in section 17.02 above;

(c) Contain the names of the interested parties requesting the Department to
comment and the address of the interested party or designated representative to whom all
correspondence with respect to the request should be sent. See also section 17.02(6)
above;

(d) Contain the information prescribed in section 17.02(2), (3), (4), (5) and (6)
above;

(e) Indicate that the application was or will be submitted to EP Determinations at
the address in section 6.15;

(f) Contain a statement of the specific matters upon which the Department's
comment is sought, as well as how such matters relate to the interested parties making the
request; and

(g) Be addressed as follows:

Deputy Assistant Secretary
Employee Benefits Security
Administration
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, D.C. 20210
Attention: 3001 Comment Request

Right to comment if DOL declines to comment

.04 If a request described in 17.03 is made and the Department of Labor notifies the interested parties making the request that it declines to comment on a matter concerning qualification of the plan which was raised in the request, the parties submitting the request may still submit a comment to EP Determinations on such matter. The comment must be received by the later of the 45th day after the day the application for determination is received by EP Determinations or the 15th day after the day on which notification is given by the Department that it declines to submit a comment on such matter. (See section 17.07 for the date of notification.) In no event may the comment be received later than the 60th day after the day the application for determination was received. Such a comment must comply with the requirements of section 17.02 and include a statement that the comment is being submitted on matters raised in a request to the Department upon which the Department declined to comment.

Confidentiality of comments

.05 For rules regarding the confidentiality of contents of written comments submitted by interested parties to the Service pursuant to section 17.02 or 17.04, see § 601.201(o)(5) of the Statement of Procedural Rules.

Availability of comments

.06 For rules regarding the availability to the applicant of copies of all comments on the application submitted pursuant to section 17.01(1), (2), (3) and (4) of this revenue procedure, see § 601.201(o)(5) of the Statement of Procedural Rules.

When comments are deemed made SECTION 18. WHAT ARE THE GENERAL RULES FOR NOTICE TO INTERESTED PARTIES?

.07 An application for an advance determination, a comment to EP Determinations, or a request to the Department of Labor shall be deemed made when it is received by EP Determinations, or the Department. Notification by the Department that it declines to comment shall be deemed given when it is received by the interested party or designated representative. The notice described in section 18.01 below shall be deemed given when it is posted or sent to the person in the manner described in § 1.7476-2. In the case of an application, comment, request, notification, or notice that is sent by mail or a private delivery service that has been designated under § 7502(f), the date as of which it shall be deemed received will be determined under § 7502. However, if such an application, comment, request, notification, or notice is not received within a reasonable period from the date determined under § 7502, the immediately preceding sentence shall not apply.

Notice to interested parties

.01 Notice that an application for an advance determination regarding the qualification of a plan that is described in §§ 401, 403(a), 409 and 4975(e)(7) and that is subject to § 410 is to be made must be given to all interested parties in the manner prescribed in § 1.7476-2(c) and in accordance with the requirements of this section. A notice to interested parties is deemed to be provided in a manner that satisfies § 1.7476-2(c) if the notice is delivered using an electronic medium under a system that satisfies the requirements of § 1.402(f)-1 Q&amp;A-5.

Time when notice must be given

.02 Notice must be given not less than 10 days nor more than 24 days prior to the day the application for a determination is made. If, however, an application is returned to the applicant for failure to adequately satisfy the notification requirements with respect to a particular group or class of interested parties, the applicant need not cause notice to be given to those groups or classes of interested parties with respect to which the notice requirement was already satisfied merely because, as a result of the resubmission of the application, the time limitations of this subsection would not be met.

Content of notice

.03 The notice referred to in section 18.01 shall contain the following information: (1) A brief description identifying the class or classes of interested parties to whom the notice is addressed (e.g., all present employees of the employer, all present employees eligible to participate);

(2) The name of the plan, the plan identification number, and the name of the plan
administrator;

(3) The name and taxpayer identification number of the applicant for a determination;

(4) That an application for a determination as to the qualified status of the plan is to be
made to the Service at the address in section 6.15, and stating whether the application
relates to an initial qualification, a plan amendment, termination, or a partial termination;

(5) A description of the class of employees eligible to participate under the plan;

(6) Whether or not the Service has issued a previous determination as to the qualified
status of the plan;

(7) A statement that any person to whom the notice is addressed is entitled to submit,
or request the Department of Labor to submit, to EP Determinations, a comment on the
question of whether the plan meets the requirements of § 401 or 403(a); that two or more
such persons may join in a single comment or request; and that if such persons request the
Department of Labor to submit a comment and the Department of Labor declines to do so
with respect to one or more matters raised in the request, the persons may still submit a
comment to EP Determinations with respect to the matters on which the Department
declines to comment. The Pension Benefit Guaranty Corporation (PBGC) may also submit
comments. In every instance where there is either a final adverse termination or a distress
termination, the Service formally notifies the PBGC for comments;

(8) The specific dates by which a comment to EP Determinations or a request to the
Department of Labor must be received in order to preserve the right of comment (see
section 17 above);

(9) The number of interested parties needed in order for the Department of Labor to
comment; and

(10) Except to the extent that the additional informational material required to be made
available by sections 18.05 through 18.09 are included in the notice, a description of a
reasonable procedure whereby such additional informational material will be available to
interested parties (see section 18.04). (Examples of notices setting forth the above
information, in a case in which the additional information required by sections 18.05
through 18.09 will be made available at places accessible to the interested parties, are set
forth in the Exhibit attached to this revenue procedure.)

Procedures for making
information available to
interested parties

.04 The procedure referred to in section 18.03(10), whereby the additional
informational material required by sections 18.05 through 18.09 will (to the extent not
included in the notice) be made available to interested parties, may consist of making
such material available for inspection and copying by interested parties at a place or
places reasonably accessible to such parties, or supplying such material by using a
method of delivery or a combination thereof that is reasonably calculated to ensure that
all interested parties will have access to the materials, provided such procedure is
immediately available to all interested parties, is designed to supply them with such
additional informational material in time for them to pursue their rights within the time
period prescribed, and is available until the earlier of: 1) the filing of a pleading
commencing a declaratory judgment action under § 7476 with respect to the
qualification of the plan; or 2) the 92nd day after the day the notice of final
determination is mailed to the applicant. Reasonable charges to interested parties for
copying and/or mailing such additional informational material are permissible.

Information to be available to
interested parties

.05 Unless provided in the notice, or unless section 18.06 applies, there shall be made
available to interested parties under a procedure described in section 18.04:

(1) An updated copy of the plan and the related trust agreement (if any); and (2) The application for determination.

Special rules if there are fewer than 26 participants

.06 If there would be fewer than 26 participants in the plan, as described in the application (including, as participants, former employees with vested benefits under the plan, beneficiaries of deceased former employees currently receiving benefits under the plan, and employees who would be eligible to participate upon making mandatory employee contributions, if any), then in lieu of making the materials described in section 18.05 available to interested parties who are not participants (as described above), there may be made available to such interested parties a document containing the following information:

(1) A description of the plan's requirements respecting eligibility for participation and benefits and the plan's benefit formula;

(2) A description of the provisions providing for nonforfeitable benefits;

(3) A description of the circumstances which may result in ineligibility, or denial or loss of benefits;

(4) A description of the source of financing of the plan and the identity of any organization through which benefits are provided;

(5) A description of any optional forms of benefits described in § 411(d)(6) which have been reduced or eliminated by plan amendment; and

(6) Any coverage schedule or other demonstration submitted with the application to show that the plan meets the requirements of §§ 401(a)(4) and 410(b).

However, once an interested party or designated representative receives a notice of final determination, the applicant must, upon request, make available to such interested party (whether or not the plan has fewer than 26 participants) an updated copy of the plan and related trust agreement (if any) and the application for determination.

Information described in § 6104(a)(1)(D) should not be included

.07 Information of the type described in § 6104(a)(1)(D) should not be included in the application, plan, or related trust agreement submitted to the Service. Accordingly, such information should not be included in any of the material required by section 18.05 or 18.06 to be available to interested parties.

Availability of additional information to interested parties

.08 Unless provided in the notice, there shall be made available to interested parties under a procedure described in section 18.04, any additional document dealing with the application which is submitted by or for the applicant to the Service, or furnished by the Service to the applicant; provided, however, if there would be fewer than 26 participants in the plan as described in the application (including, as participants, former employees with vested benefits under the plan, beneficiaries of deceased former employees currently receiving benefits under the plan, and employees who would be eligible to participate upon making mandatory employee contributions, if any), such additional documents need not be made available to interested parties who are not participants (as described above) until they, or their designated representative, receive a notice of final determination. The applicant may also withhold from such inspection and copying information described in § 6104(a)(1)(C) and (D) which may be contained in such additional documents.

Availability of notice to interested parties

.09 Unless provided in the notice, there shall be made available to all interested parties under a procedure described in section 18.04 the material described in sections 17.02 through 17.07 above.

# PART III. PROCESSING DETERMINATION LETTER REQUESTS

## SECTION 19. HOW DOES THE SERVICE HANDLE DETERMINATION LETTER REQUESTS?

Oral advice

.01 Oral advice.

(1) The Service does not issue determination letters on oral requests. However,
personnel in EP Determinations ordinarily will discuss with taxpayers or their represen-
tatives inquiries regarding: substantive tax issues; whether the Service will issue a
determination letter on particular issues; and questions relating to procedural matters
about submitting determination letter requests. Any discussion of substantive issues will
be at the discretion of the Service on a time available basis, will not be binding on the
Service, and cannot be relied upon as a basis of obtaining retroactive relief under the
provisions of § 7805(b). A taxpayer may seek oral technical assistance from a taxpayer
service representative when preparing a return or report, under established procedures.
Oral advice is advisory only, and the Service is not bound to recognize it in the
examination of the taxpayer's return.

(2) The advice or assistance furnished, whether requested by personal appearance,
telephone, or correspondence will be limited to general procedures, or will direct the
inquirer to source material, such as pertinent Code provisions, regulations, revenue
procedures, and revenue rulings that may aid the inquirer in resolving the question or
problem.

Conferences

.02 EP Determinations may grant a conference upon written request from a taxpayer
or his representative, provided the request shows that a substantive plan, amendment,
etc., has been developed for submission to the Service, but that special problems or
issues are involved, and EP Determinations concludes that a conference would be
warranted in the interest of facilitating review and determination when the plan, etc., is
formally submitted. See section 6.18 regarding the right to a status conference on
applications pending for at least 270 days.

### Determination letter based solely on administrative record

#### .03 Administrative Record

(1) In the case of a request for a determination letter, the determination of EP
Determinations or the appeals office on the qualification or non-qualification of the
retirement plan shall be based solely upon the facts contained in the administrative record.
The administrative record shall consist of the following:

(a) The request for determination, the retirement plan and any related trust
instruments, and any written modifications or amendments made by the applicant during
the proceedings within the Service;

(b) All other documents submitted to the Service by, or on behalf of, the applicant
with respect to the request for determination;

(c) All written correspondence between the Service and the applicant with respect
to the request for determination and any other documents issued to the applicant from the
Service;

(d) All written comments submitted to the Service pursuant to sections 17.01(2),
(3), and (4) above, and all correspondence relating to comments submitted between the
Service and persons (including PBGC and the Department of Labor) submitting comments
pursuant to sections 17.01(2), (3), and (4) above; and

(e) In any case in which the Service makes an investigation regarding the facts as
represented or alleged by the applicant in the request for determination or in comments
submitted pursuant to sections 17.01(2), (3), and (4) above, a copy of the official report
of such investigation.

(2) The administrative record shall be closed upon the earlier of the following events:

(a) The date of mailing of a notice of final determination by the Service with
respect to the application for determination; or

(b) The filing of a petition with the United States Tax Court seeking a declaratory
judgment with respect to the retirement plan.

(3) Any oral representation or modification of the facts as represented or alleged in the
application for determination or in a comment filed by an interested party, which is not
reduced to writing shall not become a part of the administrative record and shall not be
taken into account in the determination of the qualified status of the retirement plan by EP
Determinations or the appeals office.

### Notice of final determination

.04 In the case of final determination, the notice of final determination:

(1) Shall be the letter issued by EP Determinations or the appeals office which states
that the applicant's plan satisfies the qualification requirements of the Code. The favorable
determination letter will be sent by certified or registered mail where either an interested
party, the Department of Labor, or the PBGC has commented on the application for
determination.

(2) Shall be the letter issued, by certified or registered mail, by EP Determinations or
the appeals office subsequent to a letter of proposed determination, stating that the
applicant's plan fails to satisfy the qualification requirements of the Code.

### Issuance of the notice of final determination

.05 EP Determinations or the appeals office will send the notice of final
determination to the applicant, to the interested parties who have previously submitted
comments on the application to the Service (or to the persons designated by them to
receive such notice), to the Department of Labor in the case of a comment submitted
by the Department, and to PBGC if it has filed a comment.

## SECTION 20. EXHAUSTION OF ADMINISTRATIVE REMEDIES

In general

.01 For purposes of § 7476(b)(3), a petitioner shall be deemed to have exhausted the
administrative remedies available within the Service upon the completion of the steps
described in sections 20.02, 20.03, 20.04, or 20.05 subject, however, to sections 20.06
and 20.07. If applicants, interested parties, or the PBGC do not complete the applicable
steps described below, they will not have exhausted their respective available
administrative remedies as required by § 7476(b)(3) and will, thus, be precluded from
seeking declaratory judgment under § 7476 except to the extent that section 20.05 or
20.08 applies.

Steps for exhausting
administrative remedies

.02 In the case of an applicant, with respect to any matter relating to the qualification
of a plan, the steps referred to in section 20.01 are:

(1) Filing a completed application with EP Determinations pursuant to this revenue
procedure;

(2) Complying with the requirements pertaining to notice to interested parties as set
forth in this revenue procedure and § 1.7476-2 of the regulations; and,

(3) Appealing to the appropriate appeals office pursuant to paragraph 601.201(o)(6) of
the Statement of Procedural Rules, in the event a notice of proposed adverse determination
is issued by EP Determinations.

Applicant's request for § 7805(b) relief

.03 Consideration of relief under § 7805(b) will be included as one of the applicant's steps in exhausting administrative remedies only if the applicant requests EP Determinations to seek technical advice from EP Technical on the applicability of such relief. The applicant's request must be made in writing according to the procedures for requesting technical advice (see section 19 of Rev. Proc. 2014-5).

Interested parties

.04 In the case of an interested party or the PBGC, the steps referred to in section 20.01 are, with respect to any matter relating to the qualification of the plan, submitting to EP Determinations a comment raising such matter in accordance with section 17.01(2) above, or requesting the Department of Labor to submit to EP Determinations a comment with respect to such matter in accordance with section 17.01(3) and, if the Department of Labor declines to comment, submitting the comment in accordance with section 17.01(4) above, so that it may be considered by the Service through the administrative process.

Deemed exhaustion of administrative remedies

.05 An applicant, an interested party, or the PBGC shall in no event be deemed to have exhausted administrative remedies prior to the earlier of:

(1) The completion of those steps applicable to each as set forth in sections 20.01, 20.02, 20.03 or 20.04, which constitute their administrative remedies; or,

(2) The expiration of the 270-day period described in § 7476(b)(3), which period shall be extended in a case where there has not been a completion of all the steps referred to in section 20.02 and the Service has proceeded with due diligence in processing the application for determination.

Service must act on appeal

.06 The step described in section 20.02(3) will not be considered completed until the Service has had a reasonable time to act upon the appeal.

Service must act on § 7805(b) request

.07 Where the applicant has requested EP Determinations to seek technical advice on the applicability of § 7805(b) relief, the applicant's administrative remedies will not be considered exhausted until EP Technical has had a reasonable time to act upon the request for technical advice.

Effect of technical advice request

.08 The step described in section 20.02(3) will not be available or necessary with respect to any issue on which technical advice has been obtained from EP Technical.

## SECTION 21. WHAT EFFECT WILL AN EMPLOYEE PLAN DETERMINATION LETTER HAVE?

Scope of reliance on
determination letter

.01 A determination letter issued pursuant to this revenue procedure contains only
the opinion of the Service as to the qualification of the particular plan involving the
provisions of §§ 401 and 403(a) and the status of a related trust, if any, under
§ 501(a). Such a determination letter is based on the facts and demonstrations
presented to the Service in connection with the application for the determination letter
and may not be relied upon after a change in material fact or the effective date of a
change in law, except as provided. The Service may determine, based on the
application form, the extent of review of the plan document. Failure to disclose a
material fact or misrepresentation of a material fact adversely affects the reliance that
would otherwise be obtained through the issuance by the Service of a favorable
determination letter. Similarly, failure to accurately provide any of the information
called for on any form required by this revenue procedure may result in no reliance.

## Sections 13 and 14 of Rev. Proc. 2014-4 applicable

## Effect of subsequent publication of revenue ruling, etc.

## Determination letter does not apply to taxability issues

# SECTION 22. EFFECT ON OTHER REVENUE PROCEDURES

## SECTION 23. EFFECTIVE DATE

## SECTION 24. PAPERWORK REDUCTION ACT

Applicants are advised to retain copies of all supporting data submitted with their
applications. Failure to do so may limit the scope of reliance.

.02 Except as otherwise provided in this section, determination letters are governed,
generally, by the provisions of sections 13 and 14 of Rev. Proc. 2014-4.

.03 The prior qualification of a plan as adopted by an employer will not be considered
to be adversely affected by the publication of a revenue ruling, a revenue procedure, or an
administrative pronouncement within the meaning of § 1.6661-3(b)(2) of the regulations
where:

(1) The plan was the subject of a favorable determination letter and the request for that
letter contained no misstatement or omission of material facts;

(2) The facts subsequently developed are not materially different from the facts on
which the determination letter was based;

(3) There has been no change in the applicable law; and

(4) The employer that established the plan acted in good faith in reliance on the
determination letter. However, all such plans must be amended to comply with the
published guidance for subsequent years, in accordance with the rules set forth in Rev.
Proc. 2007-44. See, in particular, Part II of that revenue procedure.

.04 While a favorable determination letter may serve as a basis for determining
deductions for employer contributions thereunder, it is not to be taken as an indication
that contributions are necessarily deductible as made. This latter determination can be
made only upon an examination of the employer's tax return, in accordance with the
limitations, and subject to the conditions of, § 404.

Rev. Proc. 2013-6 is superseded. Rev. Proc. 2011-49 is modified.

This revenue procedure is effective February 1, 2014.

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 1545-1520.

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 OMB
control number.

The collections of information in this revenue procedure are in sections 6.05, 6.16, 6.18,
6.19, 6.20, 7.04, 13, 14, 15, 16, 19.02, and 21.04. This information is required to
determine plan qualification. This information will be used to determine whether a plan is
entitled to favorable tax treatment. The collections of information are mandatory. The
likely respondents are businesses or other for-profit institutions.

The estimated total annual reporting and/or recordkeeping burden is 163,186 hours.

The estimated annual burden per respondent/recordkeeper varies from 1 hour to 40
hours, depending on individual circumstances, with an estimated average of 2.02 hours.
The estimated number of respondents and/or recordkeepers is 80,763.

The estimated annual frequency of responses (used for reporting requirements only) is
once every three years.

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 26 U.S.C. 6103.

## DRAFTING INFORMATION

The principal author of this revenue procedure is Eric Slack of the Employee Plans,
Tax Exempt and Government Entities Division. For further information regarding this
revenue procedure, please contact the Employee Plans taxpayer assistance telephone
service at 1-877-829-5500 (a toll-free number) or Mr. Slack at Retirement
PlanQuestions@irs.gov.

# EXHIBIT: SAMPLE NOTICE TO INTERESTED PARTIES

The Exhibit set forth below, may be used to satisfy the requirements of section 18
of this revenue procedure.

# EXHIBIT: SAMPLE NOTICE TO INTERESTED PARTIES

1\.
Notice To:

[describe class or classes of interested parties]

An application is to be made to the Internal Revenue Service for an advance determination on the qualification of the following
employee pension benefit plan:

2\.

(name of plan)

3\.

(plan number)

4\.
(name and address of applicant)

5\.
(applicant EIN)

6\.
(name and address of plan administrator)

7\.
The application will be filed on
for an advance determination as to whether the plan meets the
qualification requirements of § 401 or § 403(a) of the Internal Revenue Code of 1986, with respect to the plan's
[initial qualification, amendment, termination, or partial termination]. The application will
be filed with:
Internal Revenue Service
EP Determinations
P.O. Box 12192
Covington, KY 41012-0192

8\.
The employees eligible to participate under the plan are:

9\.
The Internal Revenue Service
[has/has not] previously issued a determination letter with respect to the
qualification of this plan.

## RIGHTS OF INTERESTED PARTIES

10\. You have the right to submit to EP Determinations, at the above address, either individually or jointly with other
interested parties, your comments as to whether this plan meets the qualification requirements of the Internal Revenue
Code. Your comments to EP Determinations may be submitted to:

Internal Revenue Service
EP Determinations
Attn: Customer Service Manager
P.O. Box 2508
Cincinnati, OH 45202

You may instead, individually or jointly with other interested parties, request the Department of Labor to submit, on your
behalf, comments to EP Determinations regarding qualification of the plan. If the Department declines to comment on all
or some of the matters you raise, you may, individually, or jointly if your request was made to the Department jointly,
submit your comments on these matters directly to EP Determinations at the Cincinnati address above.

REQUESTS FOR COMMENTS BY THE DEPARTMENT OF LABOR

11\. The Department of Labor may not comment on behalf of interested parties unless requested to do so by the lesser of 10
employees or 10 percent of the employees who qualify as interested parties. The number of persons needed for the
Department to comment with respect to this plan is
If you request the Department to comment,
your request must be in writing and must specify the matters upon which comments are requested, and must also include:

(1) the information contained in items 2 through 5 of this Notice; and

(2) the number of persons needed for the Department to comment.

A request to the Department to comment should be addressed as follows:

Deputy Assistant Secretary
Employee Benefits Security
Administration
U.S. Department of Labor,
200 Constitution Avenue, N.W.
Washington, D.C. 20210
Attention: 3001 Comment Request

COMMENTS TO THE INTERNAL REVENUE SERVICE

12\. Comments submitted by you to EP Determinations must be in writing and received by it by
However,
if there are matters that you request the Department of Labor to comment upon on your behalf, and the Department
declines, you may submit comments on these matters to EP Determinations to be received by it within 15 days from the
time the Department notifies you that it will not comment on a particular matter, or by
whichever is later,
but not after
A request to the Department to comment on your behalf must be received by it by
if you wish to preserve your right to comment on a matter upon which the Department declines to
comment, or by
if you wish to waive that right.

## ADDITIONAL INFORMATION

13\. Detailed instructions regarding the requirements for notification of interested parties may be found in sections 17 and 18
of Rev. Proc. 2014-6. Additional information concerning this application (including, where applicable, an updated copy
of the plan and related trust; the application for determination; any additional documents dealing with the application that
have submitted to the Service; and copies of section 17 of Rev. Proc. 2014-6 are available
at
during the hours of
for inspection and copying. (There is a
nominal charge for copying and/or mailing.)

# APPENDIX

Checklist
As part of a § 401(h) or § 420 determination letter request described in section 16 of this revenue procedure
the following checklist may be completed and attached to the determination letter request. If the request
relates to § 401(h) but not to § 420, complete Part I only. If the request relates to § 420, complete Parts I
and II.

PART I

CIRCLE

SECTION

1. Does the Plan contain a medical benefits account within the meaning of § 401(h) of the Code? If the medical benefits account is a new provision, items "a" through "h" should be completed.

Yes No

a. Does the medical benefits account specify the medical benefits that will be available and contain provisions for determining the amount that will be paid?

Yes No

b. Does the medical benefits account specify who will benefit? c. Does the medical benefits account indicate that such benefits, when added to any life insurance protection in the Plan, will be subordinate to retirement benefits? (This requirement will not be satisfied unless the amount of actual contributions to provide § 401(h) benefits (when added to actual contributions for life insurance protection under the Plan) does not exceed 25 percent of the total actual contributions to the Plan (other than contributions to fund past service credits), determined on an aggregate basis since the inception of the § 401(h) arrangement.)

Yes No

d. Does the medical benefits account maintain separate accounts with respect to contributions to key employees (as defined in § 416(i)(1) of the Code) to fund such benefits?

Yes No

e. Does the medical benefits account state that amounts contributed must be reasonable and ascertainable?

Yes No

f. Does the medical benefits account provide for the impossibility of diversion prior to satisfaction of liabilities (other than item "7" below)?

Yes No

g. Does the medical benefits account provide for reversion upon satisfaction of all liabilities (other than item "7" below)?

Yes No

h.
Does the medical benefits account provide that forfeitures must be

applied as soon as possible to reduce employer contributions to fund the medical benefits?

Yes No

PART II

2. Does the Plan limit transfers to "Excess Assets" as defined in § 420(e)(2) of the Code?

Yes No

3. Does the Plan provide that only one transfer may be made in a taxable year (except with regard to transfers relating to prior years pursuant to § 420(b)(4) of the Code)?

Yes No

4. Does the Plan provide that the amount transferred shall not exceed the amount reasonably estimated to be paid for qualified current retiree health liabilities?

Yes No

5. Does the Plan provide that no transfer will be made after December 31, 2021?

Yes No

6. Does the Plan provide that transferred assets and income attributable to such assets shall be used only to pay qualified current retiree health liabilities for the taxable year of transfer?

Yes No

7. Does the Plan provide that any amounts transferred (plus income) that are not used to pay qualified current retiree health liabilities shall be transferred back to the defined benefit portion of the Plan?

Yes No

8. Does the Plan provide that amounts paid out of a health benefits account will be treated as paid first out of transferred assets and income attributable to those assets?

Yes No

9. Does the Plan provide that participants' accrued benefits become nonforfeitable on a termination basis (i) immediately prior to transfer, or (ii) in the case of a participant who separated within 1 year before the transfer, immediately before such separation?

Yes No

10. In the case of transfers described in § 420(b)(4) of the Code relating to 1990, does the Plan provide that benefits will be recomputed and become nonforfeitable for participants who separated from service in such prior year as described in § 420(c)(2)?

Yes No

11. Does the Plan provide that transfers will be permitted only if each group health plan or arrangement contains provisions satisfying § 420(c)(3) of the Code, as amended?

Yes No

12. Does the Plan define "applicable employer cost", "cost maintenance period" and" benefit maintenance period", as needed, consistently with § 420(c)(3) of the Code, as amended?

Yes No

13\.
Do the Plan's provisions reflect the transition rule in section 535(c)(2)
of TREA'99, if applicable?

Yes No

14\.
Does the Plan provide that transferred assets cannot be used for key
employees?

Yes No

26 CFR 601.201: Rulings and determination letters.

## Rev. Proc. 2014-7

SECTION 1. PURPOSE AND
NATURE OF CHANGES

### .01 Purpose

This revenue procedure updates Rev.
Proc. 2013-7, 2013-1 I.R.B. 233, by pro-
viding a current list of those areas of the
Internal Revenue Code under the jurisdic-
tion of the Associate Chief Counsel (In-
ternational) relating to matters on which
the Internal Revenue Service will not is-
sue letter rulings or determination letters.

### .02 Changes

Section 4.02(7), regarding hook equity,
has been added.

# SECTION 2. BACKGROUND AND SCOPE OF APPLICATION

## .01 Background

In the interest of sound tax administra-
tion, the Service answers inquiries from
individuals and organizations regarding
their status for tax purposes and the tax
effects of their acts or transactions before
the filing of returns or reports that are
required by the Internal Revenue Code.
There are, however, areas where the Ser-
vice will not issue letter rulings or deter-
mination letters, either because the issues
are inherently factual or for other reasons.
These areas are set forth in sections 3 and
4 of this revenue procedure.

Section 3 lists areas in which letter
rulings and determination letters will not
be issued under any circumstances.

Section 4 lists areas in which they
will not ordinarily be issued; in these
areas, unique and compelling reasons
may justify issuing a letter ruling or
determination letter. A taxpayer who
plans to request a letter ruling or deter-
mination letter in an area described in
Section 4 should contact (by telephone
or in writing) the Office of Associate
Chief Counsel (International) (hereinaf-
ter "the Office") prior to making such
request and discuss with the Office the
unique and compelling reasons that the
taxpayer believes justify issuing such
letter ruling or determination letter.

While not required, a written submis-
sion is encouraged since it will enable
Office personnel to arrive more quickly
at an understanding of the unique facts
of each case. A taxpayer who contacts
the Office by telephone may be re-
quested to provide a written submission.
The Service may provide a general in-
formation letter in response to inquiries
in areas on either list.

These lists are not all-inclusive. Future
revenue procedures may add or delete items.
The Service may also decline to rule on an
individual case for reasons peculiar to that
case, and such decision will not be an-
nounced in the Internal Revenue Bulletin.

## .02 Scope of Application

This revenue procedure does not pre-
clude the submission of requests for tech-
nical advice to the Office from other of-
fices of the Service.

SECTION 3. AREAS IN WHICH
RULING OR DETERMINATION
LETTERS WILL NOT BE ISSUED

## .01 Specific Questions and Problems

(1) Section 861 .- Income from
Sources Within the United States .- A
method for determining the source of a
pension payment to a nonresident alien
individual from a trust under a defined
benefit plan that is qualified under
§ 401(a) if the proposed method is incon-
sistent with §§ 4.01, 4.02, and 4.03 of
Rev. Proc. 2004-37, 2004-1 C.B. 1099.

(2) Section 862 .- Income from
Sources Without the United States .- A
method for determining the source of a
pension payment to a nonresident alien
individual from a trust under a defined
benefit plan that is qualified under
§ 401(a) if the proposed method is incon-
sistent with §§ 4.01, 4.02, and 4.03 of
Rev. Proc. 2004-37, 2004-1 C.B. 1099.

(3) Section 871(g) .- Special Rules for
Original Issue Discount .- Whether a debt
instrument having original issue discount
within the meaning of § 1273 is not an
original issue discount obligation within
the meaning of § 871(g)(1)(B)(i) when the
instrument is payable 183 days or less
from the date of original issue (without
regard to the period held by the taxpayer).

(4) Section 894 .- Income Affected by
Treaty .- Whether a person that is a resident
of a foreign country and derives income
from the United States is entitled to benefits
under the United States income tax treaty
with that foreign country pursuant to the
limitation on benefits article. However, the
Service may rule regarding the legal inter-
pretation of a particular provision within the
relevant limitation on benefits article.

(5) Section 954 .- Foreign Base Com-
pany Income .- The effective rate of tax that
a foreign country will impose on income.

(6) Section 7701(b) .- Definition of
Resident Alien and Nonresident Alien .-
Whether an alien individual is a nonresi-
dent of the United States, including
whether the individual has met the re-
quirements of the substantial presence test
or exceptions to the substantial presence
test. However, the Service may rule re-
garding the legal interpretation of a par-
ticular provision of § 7701(b) or the reg-
ulations thereunder.

## .02 General Areas.

(1) The prospective application of the
estate tax to the property or the estate of a
living person, except that rulings may be
issued on any international issues in a
ruling request accepted pursuant to § 5.06
of Rev. Proc. 2014-1, in this Bulletin.

(2) Whether reasonable cause exists
under Subtitle F (Procedure and Adminis-
tration) of the Code.

(3) Whether a proposed transaction would
subject a taxpayer to criminal penalties.

(4) Any area where the ruling request
does not comply with the requirements of
Rev. Proc. 2014-1.

(5) Any area where the same issue is
the subject of the taxpayer's pending re-
quest for competent authority assistance
under a United States tax treaty.

(6) A "comfort" ruling will not be is-
sued with respect to an issue that is clearly
and adequately addressed by statute, reg-
ulations, decisions of a court, tax treaties,
revenue rulings, or revenue procedures
absent extraordinary circumstances (e.g.,
a request for a ruling required by a gov-
ernmental regulatory authority in order to
effectuate the transaction).

(7) Any frivolous issue, as that term is
defined in § 6.10 of Rev. Proc. 2014-1.

## Sec. 3.02 January 2, 2014

SECTION 4. AREAS IN WHICH
RULING OR DETERMINATION
LETTERS WILL NOT ORDINARILY
BE ISSUED

.01 Specific Questions and Problems

(1) Section 367(a) .- Transfers of
Property from the United States .-
Whether an oil or gas working interest is
transferred from the United States for use
in the active conduct of a trade or business
for purposes of § 367(a)(3); and whether
any other property is so transferred, where
the determination requires extensive fac-
tual inquiry.

(2) Section 367(a) .- Transfers of Prop-
erty from the United States .- Whether a
transferred corporation subject to a gain rec-
ognition agreement under § 1.367(a)-8 has
disposed of substantially all of its assets.

(3) Section 367(b) .- Other Trans-
fers .- Whether and the extent to which
regulations under § 367(b) apply to an
exchange involving foreign corporations,
unless the ruling request presents a signif-
icant legal issue or subchapter C rulings
are requested in the context of the ex-
change.

(4) Section 864 .- Definitions and Spe-
cial Rules .- Whether a taxpayer is en-
gaged in a trade or business within the
United States, and whether income is ef-
fectively connected with the conduct of a
trade or business within the United States;
whether an instrument is a security as
defined in § 1.864-2(c)(2); whether a tax-
payer effects transactions in the United
States in stocks or securities under
§ 1.864-2(c)(2); whether an instrument or
item is a commodity as defined in
§ 1.864-2(d)(3); and for purposes of
§ 1.864-2(d)(1) and (2), whether a com-
modity is of a kind customarily dealt in on
an organized commodity exchange, and
whether a transaction is of a kind custom-
arily consummated at such place.

(5) Section 871 .- Tax on Nonresident
Alien Individuals .- Whether a payment
constitutes portfolio interest under
§ 871(h); whether an obligation qualifies
for any of the components of portfolio
interest such as being in registered form;
and whether the income earned on con-
tracts that do not qualify as annuities or
life insurance contracts because of the
limitations imposed by § 72(s) and

§ 7702(a) is portfolio interest as defined in
§ 871(h).

(6) Section 881 .- Tax on Income of
Foreign Corporations Not Connected with
United States Business .- Whether the in-
come earned on contracts that do not qual-
ify as annuities or life insurance contracts
because of the limitations imposed by
§ 72(s) and § 7702(a) is portfolio interest
as defined in § 881(c).

(7) Section 892 .- Income of Foreign
Governments and of International Organi-
zations .- Whether income derived by for-
eign governments and international orga-
nizations from sources within the United
States is excluded from gross income and
exempt from taxation and any underlying
issue related to that determination.

(8) Section 893 .- Compensation of
Employees of Foreign Governments and
International Organizations .- Whether
wages, fees, or salary of an employee of a
foreign government or of an international
organization received as compensation for
official services to such government or
international organization is excluded
from gross income and exempt from tax-
ation and any underlying issue related to
that determination.

(9) Section 894 .- Income Affected by
Treaty .- Whether the income received by
an individual in respect of services ren-
dered to a foreign government or a polit-
ical subdivision or a local authority
thereof is exempt from federal income tax
or withholding under any of the United
States income tax treaties which contain
provisions applicable to such individuals.

(10) Section 894 .- Income Affected
by Treaty .- Whether a taxpayer has a per-
manent establishment in the United States
for purposes of any United States income
tax treaty and whether income is attribut-
able to a permanent establishment in the
United States.

(11) Section 894 .- Income Affected
by Treaty .- Whether certain persons will
be considered liable to tax under the laws
of a foreign country for purposes of de-
termining if such persons are residents
within the meaning of any United States
income tax treaty. But see Rev. Rul.
2000-59, 2000-2 C.B. 593.

(12) Section 894 .- Income Affected
by Treaty .- Whether the income received
by a nonresident alien student or trainee
for services performed for a university or

other educational institution is exempt
from federal income tax or withholding
under any of the United States income tax
treaties which contain provisions applica-
ble to such nonresident alien students or
trainees.

(13) Section 894 .- Income Affected
by Treaty .- Whether the income received
by a nonresident alien performing re-
search or teaching as personal services for
a university, hospital or other research
institution is exempt from federal income
tax or withholding under any of the
United States income tax treaties which
contain provisions applicable to such non-
resident alien teachers or researchers.

(14) Section 894 .- Income Affected
by Treaty .- Whether a foreign recipient
of payments made by a United States per-
son is ineligible to receive the benefits of
a United States tax treaty under the prin-
ciples of Rev. Rul. 89-110, 1989-2 C.B.
275.

(15) Section 894 .- Income Affected
by Treaty .- Whether a recipient of pay-
ments is or has been a resident of a coun-
try for purposes of any United States tax
treaty. Pursuant to § 1.884-5(f), however,
the Service may rule whether a corpora-
tion representing that it is a resident of a
country is a qualified resident thereof for
purposes of § 884.

(16) Section 894 .- Income Affected
by Treaty .- Whether an entity is treated
as fiscally transparent by a foreign juris-
diction for purposes of § 894(c) and the
regulations thereunder.

(17) Section 901 .- Taxes of Foreign
Countries and of Possessions of United
States .- Whether a foreign levy meets the
requirements of a creditable tax under
§ 901.

(18) Section 901 .- Taxes of Foreign
Countries and of Possessions of United
States .- Whether a person claiming a
credit has established, based on all of the
relevant facts and circumstances, the
amount (if any) paid by a dual capacity
taxpayer under a qualifying levy that is
not paid in exchange for a specific eco-
nomic benefit. See § 1.901-2A(c)(2).

(19) Section 903 .- Credit for Taxes in
Lieu of Income, Etc., Taxes .- Whether a
foreign levy meets the requirements of a
creditable tax under § 903.

(20) Sections 927(a) (Repealed),
936(h)(5), 943(a) (Repealed), 954(d),

Sec. 4.01

993(c) .- Manufactured
Product .-
Whether a product is manufactured or
produced for purposes of § 927(a) (Re-
pealed), § 936(h)(5), § 943(a) (Repealed),
§ 954(d), and § 993(c).

(21) Section 936 .- Puerto Rico and
Possession Tax Credit .- What constitutes
a substantial line of business.

(22) Section 937 .- Definition of Bona
Fide Resident .- Whether an individual is
a bona fide resident of American Samoa,
Guam, the Northern Mariana Islands,
Puerto Rico, or the U.S. Virgin Islands.
However, the Service may rule regarding
the legal interpretation of a particular pro-
vision of § 937(a) or the regulations there-
under.

(23) Section 956 .- Investment of
Earnings in United States Property .-
Whether a pledge of the stock of a con-
trolled foreign corporation is an indirect
pledge of the assets of that corporation.
See § 1.956-2(c)(2).

(24) Section 985 .- Functional Curren-
cy .- Whether a currency is the functional
currency of a qualified business unit.

(25) Section 989(a) .- Qualified Busi-
ness Unit .- Whether a unit of the taxpay-
er's trade or business is a qualified busi-
ness unit.

(26) Section 1058 .- Transfers of Secu-
rities under Certain Agreements .- Whether
the amount of any payment described in
§ 1058(b)(2) or the amount of any other
payment made in connection with a transfer
of securities described in § 1058 is from
sources within or without the United States;
the character of such amounts; and whether
the amounts constitute a particular kind of
income for purposes of any United States
income tax treaty.

(27) Section 1503(d) .- Dual Consoli-
dated Loss .- Whether the income tax
laws of a foreign country would deny any
opportunity for the foreign use of a dual
consolidated loss in the year in which the
dual consolidated loss is incurred under
§ 1.1503(d)-3(e)(1); whether no possibil-
ity of foreign use exists under
§ 1.1503(d)-6(c)(1); whether an event
presumptively constitutes a triggering
event under § 1.1503(d)-6(e)(1)(i)-(ix);
whether the presumption of a triggering
event is rebutted under § 1.1503(d)-
6(e)(2); and whether a domestic use
agreement terminates under § 1.1503(d)-
6(j)(1). The Service will also not ordinar-

ily rule on the corresponding provisions of
prior regulations under § 1503(d).

(28) Section 2501 .- Imposition of
Tax .- Whether a partnership interest is
intangible property for purposes of
§ 2501(a)(2) (dealing with transfers of
intangible property by a nonresident not a
citizen of the United States).

(29) Section 7701 .- Definitions .-
Whether an estate or trust is a foreign estate
or trust for federal income tax purposes.

(30) Section 7701 .- Definitions .-
Whether an intermediate entity is a con-
duit entity under § 1.881-3(a)(4); whether
a transaction is a financing transaction un-
der § 1.881-3(a)(ii); whether the partici-
pation of an intermediate entity in a fi-
nancing arrangement is pursuant to a tax
avoidance plan under § 1.881-3(b);
whether an intermediate entity performs
significant financing activities under
§ 1.881-3(b)(3)(ii); whether an unrelated
intermediate entity would not have partic-
ipated in a financing arrangement on sub-
stantially the same terms under § 1.881-
3(c).

(31) Section 7874 .- Expatriated Enti-
ties and their Foreign Parents .- Whether,
after the acquisition, the expanded affili-
ated group has substantial business activ-
ities in the foreign country in which, or
under the law of which, the foreign entity
is created or organized, when compared to
the total business activities of the ex-
panded affiliated group.

(32) Section 7874 .- Expatriated Enti-
ties and their Foreign Parents .- Whether
a foreign corporation completes the direct
or indirect acquisition of substantially all
of the properties held directly or indirectly
by a domestic corporation or substantially
all of the properties constituting a trade or
business of a domestic partnership.

## .02 General Areas

(1) Whether a taxpayer has a business
purpose for a transaction or arrangement.

(2) Whether a taxpayer uses a correct
North American Industry Classification
System (NAICS) code or Standard Indus-
trial Classification (SIC) code.

(3) Any transaction or series of trans-
actions that is designed to achieve a dif-
ferent tax consequence or classification
under U.S. tax law (including tax treaties)
and the tax law of a foreign country,

where the results of that different tax con-
sequence or classification are inconsistent
with the purposes of U.S. tax law (includ-
ing tax treaties).

(4)(a) Situations where a taxpayer or a
related party is domiciled or organized in
a foreign jurisdiction with which the
United States does not have an effective
mechanism for obtaining tax information
with respect to civil tax examinations and
criminal tax investigations, which would
preclude the Service from obtaining infor-
mation located in such jurisdiction that is
relevant to the analysis or examination of
the tax issues involved in the ruling re-
quest.

(b) The provisions of subsection
4.02(4)(a) above shall not apply if the
taxpayer or affected related party (i) con-
sents to the disclosure of all relevant in-
formation requested by the Service in pro-
cessing the ruling request or in the course
of an examination to verify the accuracy
of the representations made and to other-
wise analyze or examine the tax issues
involved in the ruling request, and (ii)
waives all claims to protection of bank or
commercial secrecy laws in the foreign
jurisdiction with respect to the informa-
tion requested by the Service. In the event
the taxpayer's or related party's consent to
disclose relevant information or to waive
protection of bank or commercial secrecy
is determined by the Service to be inef-
fective or of no force and effect, then the
Service may retroactively rescind any rul-
ing rendered in reliance on such consent.

(5) The federal tax consequences of
proposed federal, state, local, municipal,
or foreign legislation.

(6)(a) Situations involving the interpre-
tation of foreign law or foreign docu-
ments. The interpretation of a foreign law
or foreign document means making a
judgment about the import or effect of the
foreign law or document that goes beyond
its plain meaning.

(b) The Service, at its discretion, may
consider rulings that involve the interpre-
tation of foreign laws or foreign docu-
ments. In these cases, the Service may
request information in addition to that
listed in §§ 7.01(2)(b) and (c) of Rev.
Proc. 2014-1, including a discussion of
the implications of any authority believed
to interpret the foreign law or foreign doc-
ument, such as pending legislation, trea-

## Sec. 4.02

ties, court decisions, notices or adminis-
trative decisions.

(7) The treatment or effects of hook
equity, as described in section 4.02(11) of
Rev. Proc. 2014-3, in this Bulletin.

# SECTION 5. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 2013-7 is superseded.

# SECTION 6. EFFECTIVE DATE

This revenue procedure is effective
January 2, 2014.

# SECTION 7. DRAFTING INFORMATION

This revenue procedure was compiled
by Nancy M. Galib of the Office of As-
sociate Chief Counsel (International). For
further information about this revenue
procedure, please contact Ms. Galib at
(202) 317-3800 (not a toll-free number).

## 26 CFR 601.201: Rulings and determination letters. Rev. Proc. 2014-8

TABLE OF CONTENTS

SECTION 1. PURPOSE

243

SECTION 2. CHANGES

243

SECTION 3. BACKGROUND

243

.01 Legislation authorizing user fees

243

.02 Related revenue procedures

243

SECTION 4. SCOPE

243

.01 Requests to which user fees apply

243

.02 Requests and other actions that do not require the payment of a user fee

243

.03 Exemptions from the user fee requirements

244

.04 Compliance and Correction Fees

244

SECTION 5. DEFINITIONS

244

SECTION 6. FEE SCHEDULE

245

EMPLOYEE PLANS USER FEES

.01 Letter ruling requests

245

.02 Opinion letters on prototype individual retirement accounts and/or annuities, SEPS, SIMPLE IRAS,

SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs

245

.03 Opinion letters on master and prototype plans

245

.04 Advisory letters on volume submitter plans

246

.05 Determination letters

246

.06 Opinion letters on § 403(b) prototype plans

247

.07 Advisory letters on § 403(b) volume submitter plans

247

EXEMPT ORGANIZATIONS USER FEES

.08 Letter rulings.

247

.09 Determination letters and requests for group exemption letters

247

.10 Summary of Exempt Organization Fees

248

SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS, DETERMINATION LETTERS, ETC

249

.01 Matters handled by EP or EO Technical

249

.02 Matters handled by EP or EO Determinations

249

SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES, ISSUES, TRANSACTIONS, OR ENTITIES

250

.01 Requests involving several offices

250

.02 Requests involving several fee categories

250

.03 Requests involving several issues

250

.04 Requests involving several unrelated transactions

250

.05 Requests for separate letter rulings for several entities

250

SECTION 9. PAYMENT OF FEE

250

.01 Method of payment

250

.02 Transmittal forms

250

.03 Effect of nonpayment or payment of incorrect amount.

250

SECTION 10. REFUNDS

251

.01 General rule

251

.02 Examples

251

SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE

252

SECTION 12. EFFECT ON OTHER DOCUMENTS

252

SECTION 13. EFFECTIVE DATE

252

SECTION 14. PAPERWORK REDUCTION ACT

252

APPENDIX

253

# SECTION 1. PURPOSE

This revenue procedure provides guidance
for complying with the user fee program of the
Internal Revenue Service as it pertains to re-
quests for letter rulings, determination letters,
etc., on matters under the jurisdiction of the
Commissioner, Tax Exempt and Government
Entities Division; and requests for administra-
tive scrutiny determinations under Rev. Proc.
93-41, 1993-2 C.B. 536.

# SECTION 2. CHANGES

.01 In general. This revenue procedure
is a general update of Rev. Proc. 2013-8,
2013-1 I.R.B. 237. In addition to minor
revisions, such as updating references, the
following changes have been made:

.02 Section 5 has been modified to include
definitions for § 403(b) pre-approved plans.

.03 Sections 6.01(6), (8) and (11) have
been deleted and the remaining sections
have been renumbered. Rulings requested
under these categories will continue to be
processed under the "All other letter rul-
ings" category.

.04 Deleted subcategories (a), (b) and (c)
under section 6.01(14). Rulings requested
under these categories will continue to be
processed under the "All other letter rul-
ings" category.

.05 Updated user fee amounts for var-
ious employee plan user fees. The follow-
ing fee changes have been made:

(a) Changed \$ 12,000 to \$ 16,000 in
section 6.03(1)(a)

(b) Changed \$ 1,000 to \$ 2,000 in
section 6.03(1)(b)

(d) Changed \$ 12,000 to \$ 14,000 in
section 6.03(4)(a)

(e) Changed \$ 9,500 to \$ 11,000 in
section 6.03(4)(b)

(f) Changed \$ 12,000 to \$ 14,000 in
section 6.04(1)(a)

(g) Changed \$ 9,500 to \$ 11,000 in
section 6.04(1)(b)

(h) Changed \$ 12,000 to \$ 16,000 in
section 6.04(2)(a)

(i) Changed \$ 1,000 to \$ 2,000 in sec-
tion 6.04(2)(b)

(j) Changed \$ 300 to \$ 400 in section
6.04(3)

(k) Changed \$ 300 to \$ 500 in section
6.05(1)(b)

Note: Form 8717, User Fee for Employee
Plan Determination Letter Request, (Rev.
February 2013) and Form 8717-A, User Fee
for Employee Plan Opinion or Advisory Letter
Request, (Rev. February 2013) have not yet
been revised to reflect the most recent changes
to user fees provided in this revenue proce-
dure. Until the forms are revised, include the
most recent version of Form 8717 or Form
8717-A (Rev. February 2013), as applicable,
but include the current user fee under the fee
schedule provided in this revenue procedure,
along with the rest of the letter application.

.06 Added Section 6.06, Opinion Let-
ters on § 403(b) Prototype Plans.

.07 Added Section 6.07, Advisory Let-
ters on § 403(b) Volume Submitter Plans.

.08 Renumbered sections 6.06 through
6.08 under Exempt Organization User
Fees as sections 6.08 through 6.10.

.09 Section 6.08 is modified so there is
a single fee for all letter rulings.

.10 Section 6.08 is modified to delete
the reference to qualified subsidiaries of
§ 501(c)(25) organizations.

.11 Eliminated the user fee for account-
ing method changes.

.12 Eliminated the user fee for account-
ing period changes.

.13 Added section 7.01(4) to reflect that
requests for opinion and advisory letters for
§ 403(b) pre-approved plans should be sub-
mitted to the Service's McPherson Station,
Washington, D.C., P.O. Box, and renum-
bered the remaining section.

.14 Added section 9.04 to reflect that
the payment of user fees for Employee
Plan Determination applications may be
paid utilizing www.pay.gov.

.15 Appendix B is modified to add Rev.
Proc. 2013-22, which contains the Service's
procedures for issuing opinion and advisory
letters for § 403(b) pre-approved plans (that
is, § 403(b) prototype plans and § 403(b)
volume submitter plans).

# SECTION 3. BACKGROUND

.01 Legislation authorizing user fees.
Section 7528 of the Code directs the Secretary
of the Treasury or delegate (the "Secretary") to
establish a program requiring the payment of
user fees for requests to the Service for letter
rulings, opinion letters, determination letters,
and similar requests. The fees charged under
the program: (1) are to vary according to cat-
egories or subcategories established by the
Secretary; (2) are to be determined after taking

into account the average time for, and diffi-
culty of, complying with requests in each cat-
egory and subcategory; and (3) are payable in
advance. Section 7528(b)(3) directs the Secre-
tary to provide for exemptions and reduced
fees under the program as the Secretary deter-
mines to be appropriate, but the average fee
applicable to each category may not be less
than the amount specified in § 7528.

.02 Related revenue procedures. The vari-
ous revenue procedures that require payment
of a user fee, or an administrative scrutiny
determination user fee are described in the
appendix to this revenue procedure.

# SECTION 4. SCOPE

.01 Requests to which user fees apply. In
general, user fees apply to all requests for letter
rulings, opinion letters, determination letters,
and advisory letters submitted by or on behalf
of taxpayers, sponsoring organizations or
other entities as described in this revenue pro-
cedure. Further, administrative scrutiny deter-
mination user fees, described in Rev. Proc.
93-41, are collected through the user fee pro-
gram described in this revenue procedure. Re-
quests to which a user fee or an administrative
scrutiny determination user fee is applicable
must be accompanied by the appropriate fee as
determined from the fee schedule set forth in
section 6 of this revenue procedure. The fee
may be refunded in limited circumstances as
set forth in section 10.

.02 Requests and other actions that do
not require the payment of a user fee.
Actions which do not require the payment
of a user fee include the following:

(1) Requests for information letters as
defined in Rev. Proc. 2014-4, this Bulletin;

(2) Elections pertaining to automatic ex-
tensions of time under § 301.9100-1 of the
Procedure and Administration regulations;

(3) Use of forms which are not to be filed
with the Service. For example, no user fee is
required in connection with the use of Form
5305, Traditional Individual Retirement
Trust Account, or Form 5305-A, Tradi-
tional Individual Retirement Custodial Ac-
count, in order to adopt an individual retire-
ment account under § 408(a);

(4) In general, plan amendments whereby
sponsors amend their plans by adopting, word-
for-word, the model language contained in a
revenue procedure which states that the
amendment should not be submitted to the
Service and that the Service will not issue new
opinion, advisory, ruling or determination let-

Sec. 4.02

ters for plans that are amended solely to add
the model language; and

(5) Change in accounting period or ac-
counting method permitted by a published
revenue procedure that permits an auto-
matic change without prior approval of
the Commissioner.

.03 Exemptions from the user fee re-
quirements. The following exemptions
apply to the user fee requirements. These
are the only exemptions that apply:

(1) Departments, agencies, or instrumental-
ities of the United States that certify that they
are seeking a letter ruling, determination letter,
opinion letter or similar letter on behalf of a
program or activity funded by federal appro-
priations. The fact that a user fee is not charged
has no bearing on whether an applicant is
treated as an agency or instrumentality of the
United States for purposes of any provision of
the Code except for § 7528.

(2) Requests as to whether a worker is an
employee for federal employment taxes and
federal income tax withholding purposes
(chapters 21, 22, 23, 23A, and 24 of subtitle C
of the Code) submitted on Form SS-8, Deter-
mination of Worker Status for Purposes of
Federal Employment Taxes and Income Tax
Withholding, or its equivalent. Such a request
may be submitted in connection with an ap-
plication for a determination on the qualifica-
tion of a plan when it is necessary to determine
whether an employer-employee relationship
exists. See section 6.12 of Rev. Proc. 2014-6.
In that case, although no user fee applies to the
request submitted on Form SS-8, the applica-
ble user fee must be paid in connection with
the application for determination on the plan's
qualification.

(3) The exemption from the user fee
requirements applies to all eligible em-
ployers within the meaning of

§ 7528(b)(2)(C)(ii) who request a deter-
mination letter within the first five plan
years or, if later, the end of any remedial
amendment period with respect to the plan
that begins within the first five plan years.
See, Instructions to Form 8717, User Fee
for Employee Plans Determination Letter
Request, and Notice 2002-1, 2002-1 C.B.
283, as amplified by Notice 2003-49,
2003-2 C.B. 294, and Notice 2011-86,
2011-45 I.R.B. 698.

.04 Compliance and Correction Fees.
Compliance fees and compliance correction
fees under the Employee Plans Compliance
Resolution System are not described in this
procedure because they are compliance fees or
compliance correction fees and not user fees.
For further guidance, please see Rev. Proc.
2013-12, 2013-4 I.R.B. 313.

# SECTION 5. DEFINITIONS

The following terms used in this revenue procedure are defined in the pertinent revenue procedures referred to below, which are
described in the appendix:

§ 403(b) pre-approved plan

Rev. Proc. 2013-22

Administrative scrutiny determination

Rev. Proc. 93-41

Adoption agreement

Rev. Procs. 2011-49, 2013-22

Advisory letter

Rev. Procs. 2011-49, 2013-22, 2014-6

Basic plan document

Rev. Procs. 2011-49, 2013-22

Determination letter

Rev. Procs. 2014-6, 2014-9

Dual-purpose IRA

Rev. Procs. 98-59, 2010-48

Group exemption letter

Rev. Proc. 80-27

Information letter

Rev. Proc. 2014-4

Letter ruling

Rev. Proc. 2014-4

Mass submitter

Rev. Procs. 87-50, 2011-49, 2013-22

Mass submitter plan

Rev. Procs. 2011-49, 2013-22

Master plan

Rev. Proc. 2011-49

Minor modification / modifier

Rev. Procs. 87-50, 2011-49, 2013-22

Opinion letter

Rev. Procs. 2011-49, 2013-22, 2014-4

Prototype plan

Rev. Procs. 2011-49, 2013-22

Roth IRA

Rev. Procs. 98-59, 2010-48

SIMPLE IRA

Rev. Proc. 97-29

SIMPLE IRA Plan

Rev. Proc. 97-29

Sponsor

Rev. Procs. 2011-49, 2013-22

Sponsoring organization

Rev. Proc. 87-50

Staggered Remedial Amendment Period

Rev. Proc. 2007-44

Substitute mortality table

Rev. Proc. 2007-37

Volume submitter lead specimen plan

Rev. Proc. 2011-49

Volume submitter plan

Rev. Procs. 2011-49, 2013-22

Volume submitter specimen plan

Rev. Procs. 2011-49, 2013-22

Word-for-word identical adoption / Adopter

Rev. Procs. 87-50, 2011-49, 2013-22

# SECTION 6. FEE SCHEDULE

The amount of the user fee payable with respect to each category or subcategory of submission is as set forth in the following schedule.

Internal Revenue Bulletin 2014-1 (PDF rendition): IRS Revenue Procedures

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