Internal Revenue Bulletin 2012-1 (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.

Bulletin No. 201
2-1
January 3, 2012
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. 2012–4, page 125.
Rulings and information letters; issuance procedures.
Revised procedures are provided for furnishing ruling letters,
information letters, etc., on matters related to sections of the
Code currently under the jurisdiction of the Office of the Divi-
sion Commissioner, Tax Exempt and Government Entities. Rev.
Proc. 2011–4 superseded.
Rev. Proc. 2012–5, page 169.
Technical advice.Revised procedures are provided for fur-
nishing technical advice to area managers and appeals offices
by the Office of the Division Commissioner, Tax Exempt and
Government Entities, regarding issues in the employee plans
area (including actuarial matters) and in the exempt organiza-
tions area. Rev. Proc. 2011–5 superseded.
Rev. Proc. 2012–6, page 197.
Employee plans determination letters.Revised proce-
dures are provided for issuing determination letters on the
qualified status of employee plans under sections 401(a),
403(a), 409, and 4975 of the Code. Rev. Proc. 2011–6
superseded.
Rev. Proc. 2012–8, page 235.
User fees for employee plans and exempt organizations.
Up-to-date guidance for complying with the user fee program
of the Service as it pertains to requests for letter rulings, de-
termination letters, etc., on matters under the jurisdiction of
the Office of the Division Commissioner, Tax Exempt and Gov-
ernment Entities Division, is provided. Rev. Proc. 2011–8
superseded.
EXEMPT ORGANIZATIONS
Rev. Proc. 2012–4, page 125.
Rulings and information letters; issuance procedures.
Revised procedures are provided for furnishing ruling letters,
information letters, etc., on matters related to sections of the
Code currently under the jurisdiction of the Office of the Divi-
sion Commissioner, Tax Exempt and Government Entities. Rev.
Proc. 2011–4 superseded.
Rev. Proc. 2012–5, page 169.
Technical advice.Revised procedures are provided for fur-
nishing technical advice to area managers and appeals offices
by the Office of the Division Commissioner, Tax Exempt and
Government Entities, regarding issues in the employee plans
area (including actuarial matters) and in the exempt organiza-
tions area. Rev. Proc. 2011–5 superseded.
Rev. Proc. 2012–8, page 235.
User fees for employee plans and exempt organizations.
Up-to-date guidance for complying with the user fee program
of the Service as it pertains to requests for letter rulings, de-
termination letters, etc., on matters under the jurisdiction of
the Office of the Division Commissioner, Tax Exempt and Gov-
ernment Entities Division, is provided. Rev. Proc. 2011–8
superseded.
Announcement 2012–1, page 249.
This announcement is a cumulative listing of names of orga-
nizations that are challenging their revocations under section
7428 of the Code.
(Continued on the next page)
Finding Lists begin on page ii.

ADMINISTRATIVE
Rev. Proc. 2012–1, page 1.
Letter rulings, information letters, and determination let-
ters.This procedure contains revised procedures for letter
rulings and information letters issued by the Associate Chief
Counsel (Corporate), Associate Chief Counsel (Financial Insti-
tutions and Products), Associate Chief Counsel (Income Tax
and Accounting), Associate Chief Counsel (International), Asso-
ciate Chief Counsel (Passthroughs and Special Industries), As-
sociate Chief Counsel (Procedure and Administration), and Di-
vision Counsel/Associate Chief Counsel (Tax Exempt and Gov-
ernment Entities). This procedure also contains revised proce-
dures for determination letters issued by the Large Business
and International Division, Small Business/Self-Employed Divi-
sion, Wage and Investment Division, and Tax Exempt and Gov-
ernment Entities Division. Rev. Proc. 2011–1 superseded.
Rev. Proc. 2012–2, page 92.
Technical advice.This procedure explains when and how the
Associate Chief Counsel (Corporate), Associate Chief Counsel
(Financial Institutions and Products), Associate Chief Counsel
(Income Tax and Accounting), Associate Chief Counsel (Inter-
national), Associate Chief Counsel (Passthroughs and Special
Industries), Associate Chief Counsel (Procedure and Adminis-
tration), and Division Counsel/Associate Chief Counsel (Tax Ex-
empt and Government Entities) issue technical advice memo-
randa (TAMs) to a director or an Appeals Area Director. It also
explains the rights a taxpayer has when a field office requests a
TAM regarding a tax matter. Rev. Proc. 2011–2 superseded.
Rev. Proc. 2012–3, page 113.
Areas in which rulings will not be issued (domestic ar-
eas).This procedure provides a revised list of those provisions
of the Code under the jurisdiction of the Associates Chief Coun-
sel (Corporate, Financial Institutions and Products, Income Tax
and Accounting, Passthroughs and Special Industries, and Pro-
cedure 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. 2011–3 superseded.
Rev. Proc. 2012–7, page 232.
Areas in which rulings will not be issued; Associated
Chief Counsel (International).This procedure revises the
list of those provisions of the Code under the jurisdiction of
the Associate Chief Counsel (International) relating to matters
where the Service will not issue letter rulings or determination
letters. Rev. Proc. 2011–7 superseded.
January 3, 20122012–1 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th 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 and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
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, identifying 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.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al 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, Leg-
islation 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 Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d 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 c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2012–1 I.R.B.January 3, 2012

January 3, 20122012–1 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
26 CFR § 601.201: Rulings and determination letters.
Rev. Proc. 2012–1
TABLE OF CONTENTS
SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?
................................................ 5
.01Descriptionoftermsusedinthisrevenueprocedure................................................................ 6
.02Updatedannually.............................................................................................. 6
SECTION 2. WHAT ARE THE FORMS IN WHICH THE SERVICE PROVIDES ADVICE TO TAXPAYERS?.................... 6
.01Letterruling .................................................................................................. 7
.02Closingagreement............................................................................................. 7
.03Determinationletter............................................................................................ 7
.04Informationletter.............................................................................................. 7
.05OralAdvice .................................................................................................. 8
(1)Nooralrulingsandnowrittenrulingsinresponsetooralrequests. ............................................... 8
(2)Discussionpossibleonsubstantiveissues...................................................................... 8
(3)Oralguidanceisadvisoryonly,andtheServiceisnotboundbyit................................................. 8
SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN ADVICE UNDER THIS
REVENUE PROCEDURE?
................................................................................ 8
.01IssuesunderthejurisdictionoftheAssociateChiefCounsel(Corporate) ............................................. 9
.02IssuesunderthejurisdictionoftheAssociateChiefCounsel(FinancialInstitutionsandProducts) ....................... 9
.03IssuesunderthejurisdictionoftheAssociateChiefCounsel(IncomeTaxandAccounting)............................. 9
.04IssuesunderthejurisdictionoftheAssociateChiefCounsel(International)........................................... 9
.05IssuesunderthejurisdictionoftheAssociateChiefCounsel(PassthroughsandSpecialIndustries) ...................... 9
.06IssuesunderthejurisdictionoftheAssociateChiefCounsel(ProcedureandAdministration) ........................... 9
.07 Issues under the jurisdiction of the DivisionCounsel/Associate Chief Counsel (Tax Exempt and
GovernmentEntities) ......................................................................................... 10
SECTION 4. ON WHAT ISSUES MUST WRITTEN ADVICE BE REQUESTED UNDER DIFFERENT
PROCEDURES?
........................................................................................ 10
.01 Issues involving alcohol, tobacco, and firearms taxes............................................................. 10
.02 Issues involving employee plans, individual retirement accounts (IRAs), and exempt organizations..................... 10
SECTION 5. UNDER WHAT CIRCUMSTANCES DO THE ASSOCIATE OFFICES ISSUE LETTER
RULINGS?
............................................................................................. 10
.01Inincomeandgifttaxmatters.................................................................................. 10
.02SpecialreliefforlateScorporationandrelatedelectionsinlieuofletterrulingprocess................................ 10
.03A§301.9100requestforextensionoftimeformakinganelectionorforotherrelief.................................. 11
.04Determinationsunder§999(d)................................................................................. 12
.05Inmattersinvolving§367..................................................................................... 12
.06Inestatetaxmatters........................................................................................... 12
.07Inmattersinvolvingadditionalestatetaxunder§2032A(c)........................................................ 13
.08Inmattersinvolvingqualifieddomestictrustsunder§2056A...................................................... 13
.09Ingeneration-skippingtransfertaxmatters....................................................................... 13
.10Inemploymentandexcisetaxmatters........................................................................... 13
.11Inproceduralandadministrativematters......................................................................... 13
.12InIndiantribalgovernmentmatters............................................................................. 13
.13Onconstructivesalespriceunder§4216(b)or§4218(c).......................................................... 14
.14Undersomecircumstancesbeforetheissuanceofaregulationorotherpublishedguidance............................ 14
SECTION 6. UNDER WHAT CIRCUMSTANCES DOES THE SERVICE NOT ISSUE LETTER RULINGS
OR DETERMINATION LETTERS?
....................................................................... 14
.01Ordinarilynotiftherequestinvolvesanissueunderexaminationorconsiderationorinlitigation....................... 14
.02 Ordinarily not in certain areas because of factual nature of the problem or for other reasons............................ 15
.03Ordinarilynotonpartofanintegratedtransaction................................................................ 15
2012–1 I.R.B.1January 3, 2012

.04Ordinarilynotonwhichoftwoentitiesisacommonlawemployer................................................. 16
.05Ordinarilynottobusinessassociationsorgroups................................................................. 16
.06 Ordinarily not where the request does not address the tax status, liability, or reporting obligations of
therequester................................................................................................. 16
.07Ordinarilynottoforeigngovernments........................................................................... 16
.08OrdinarilynotonFederaltaxconsequencesofproposedlegislation................................................. 16
.09Ordinarilynotbeforeissuanceofaregulationorotherpublishedguidance........................................... 16
.10Notonfrivolousissues ....................................................................................... 17
.11No“comfort”letterrulings .................................................................................... 17
.12Notonalternativeplansorhypotheticalsituations................................................................ 17
.13Notonpropertyconversionsafterreturnfiled.................................................................... 17
.14CircumstancesunderwhichdeterminationlettersarenotissuedbyaDirector........................................ 18
SECTION 7. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS AND
DETERMINATION LETTERS?
........................................................................... 18
.01Documentsandinformationrequiredinallrequests............................................................... 18
(1)Completestatementoffactsandotherinformation ............................................................ 18
(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents pertinent to the
transaction,andforeignlaws ............................................................................... 18
(3)Analysisofmaterialfacts .................................................................................. 19
(4)Statementregardingwhethersameissueisinanearlierreturn .................................................. 19
(5) Statement regarding whether same or similar issue was previously ruled on or whether a request
involvingitwassubmittedoriscurrentlypending............................................................. 20
(6)Statementregardinginterpretationofasubstantiveprovisionofanincomeorestatetaxtreaty...................... 20
(7)LetterfromBureauofIndianAffairsrelatingtocertainletterrulingrequests...................................... 20
(8)Statementofsupportingauthorities.......................................................................... 21
(9)Statementofcontraryauthorities. ........................................................................... 21
(10)Statementidentifyingpendinglegislation ................................................................... 21
(11) Statement identifying information to be deleted from public inspection copy of letter ruling or
determinationletter........................................................................................ 21
(12)Signaturebytaxpayerorauthorizedrepresentative........................................................... 22
(13)Authorizedrepresentatives................................................................................ 22
(14)Powerofattorneyanddeclarationofrepresentative .......................................................... 23
(15)Penaltiesofperjurystatement ............................................................................. 24
(16)Numberofcopiesofrequesttobesubmitted ................................................................ 24
(17)Sampleformatforaletterrulingrequest .................................................................... 24
(18)Checklistforletterrulingrequests.......................................................................... 25
.02Additionalproceduralinformationrequiredwithrequest .......................................................... 25
(1)Torequestseparateletterrulingsformultipleissuesinasinglesituation ......................................... 25
(2) Power of attorney used to indicate recipient of a copy or copies of a letter ruling or a
determinationletter ....................................................................................... 25
(3)Torequestaparticularconclusiononaproposedtransaction.................................................... 26
(4)Torequestexpeditedhandling .............................................................................. 26
(5) To request the receipt of any document related to letter ruling request by fax...................................... 27
(6)Torequestaconference.................................................................................... 28
.03Addresstowhichtosendrequestforletterrulingordeterminationletter ............................................ 28
(1)Requestforletterruling. ................................................................................... 28
(2)Requestfordeterminationletter. ............................................................................ 28
.04Pendingletterrulingrequests .................................................................................. 29
(1) Circumstances under which the taxpayer with a pending letter ruling request must notify the
associateoffice ........................................................................................... 29
(2) Taxpayer must notify the Associate office if areturn is filed and must attach the request to the
return.................................................................................................... 29
.05Whentoattachletterrulingordeterminationlettertoreturn ....................................................... 29
.06Howtocheckonstatusofrequestforletterrulingordeterminationletter............................................ 30
.07 Request for letter ruling or determination letter may be withdrawn or Associate office may decline to
issueletterruling............................................................................................. 30
(1)Ingeneral................................................................................................ 30
January 3, 201222012–1 I.R.B.

(2)NotificationofappropriateServiceofficial................................................................... 30
(3)Refundofuserfee......................................................................................... 30
SECTION 8. HOW DO THE ASSOCIATE OFFICES HANDLE LETTER RULING REQUESTS?.............................. 30
.01 Docket, Records, and User FeeBranch receives, initially controls, and refers the request to the
appropriateAssociateoffice.................................................................................... 30
.02BranchrepresentativeoftheAssociateofficecontactstaxpayerwithin21calendardays............................... 31
.03Determinesiftransactioncanbemodifiedtoobtainfavorableletterruling........................................... 31
.04Arenotboundbyinformalopinionexpressed.................................................................... 31
.05Mayrequestadditionalinformation............................................................................. 31
(1)Additionalinformationmustbesubmittedwithin21calendardays.............................................. 31
(2)Extensionofreplyperiodifjustifiedandapproved............................................................ 32
(3)Letterrulingrequestclosedifthetaxpayerdoesnottimelysubmitadditionalinformation.......................... 32
(4)Penaltiesofperjurystatement .............................................................................. 32
(5)Faxingrequestandadditionalinformation ................................................................... 32
(6)Addresstowhichtosendadditionalinformation.............................................................. 32
(7)Identifyinginformation .................................................................................... 33
(8)Numberofcopies ......................................................................................... 33
.06 Near the completion of the ruling process, advise the taxpayer of conclusions and, if the Associate
officeswillruleadversely,offerthetaxpayertheopportunitytowithdrawtheletterrulingrequest...................... 33
.07 May request that taxpayer submit draft proposed letter ruling near the completion of the ruling
process...................................................................................................... 33
.08 Issue separate letter rulings for substantially identical letter rulings, but generally issue a single
letter ruling for related letter rulings under § 301.9100–1 through § 301.9100–3 of the Treasury
Regulations.................................................................................................. 34
.09SendsacopyoftheletterrulingtoappropriateServiceofficial..................................................... 34
SECTION 9. WHAT ARE THE SPECIFIC AND ADDITIONAL PROCEDURES FOR A REQUEST FOR A
CHANGE IN METHOD OF ACCOUNTING FROM THE ASSOCIATE OFFICES?
............................... 34
.01Automaticandadvanceconsentchangeinmethodofaccountingrequests........................................... 34
(1) Automatic change in method of accounting underRev. Proc. 2011–14 (or any successor) or other
automaticchangerequestprocedure......................................................................... 34
(2) Advance consent change in method of accounting............................................................. 35
.02 Ordinarily only one change inmethod 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
tradeorbusiness.............................................................................................. 35
.03TheinformationrequiredwithaForm3115...................................................................... 35
(1)FactsandotherinformationrequestedonForm3115andinapplicablerevenueprocedures......................... 35
(2)Statementofcontraryauthorities............................................................................ 36
(3)Copiesofallcontracts,agreements,andotherdocuments ...................................................... 36
(4)Analysisofmaterialfacts .................................................................................. 36
(5)Informationregardingwhethersameissueisinanearlierreturn................................................. 36
(6) Statement regarding prior requests for a change in accounting method and other pending requests................... 36
(7)Statementidentifyingpendinglegislation .................................................................... 37
(8)Authorizedrepresentative.................................................................................. 37
(9)Powerofattorneyanddeclarationofrepresentative ........................................................... 37
(10)Taxinformationauthorization.............................................................................. 37
(11)Penaltiesofperjurystatement.............................................................................. 37
.04Additionalproceduralinformationrequiredincertaincircumstances................................................ 38
(1) Recipients of original and copy of change in accounting method correspondence................................. 38
(2)Torequestexpeditedhandling .............................................................................. 38
(3) To receive the change in accounting method letterruling or any other correspondence related to
Form3115byfax......................................................................................... 38
(4)Torequestaconference.................................................................................... 38
.05AddressestowhichtosendForms3115 ........................................................................ 38
.06AForm3115mustnotbesubmittedbyfax...................................................................... 40
.07 Docket, Records, and User Fee Branch receives,initially controls, and refers the Form 3115 to the
appropriateAssociateoffice.................................................................................... 40
2012–1 I.R.B.3January 3, 2012

.08Additionalinformation........................................................................................ 40
(1)Replyperiod.............................................................................................. 40
(2)Requestforextensionofreplyperiod........................................................................ 40
(3)Penaltiesofperjurystatement............................................................................... 41
(4)Identifyinginformation .................................................................................... 41
(5)Faxinginformationrequestandadditionalinformation......................................................... 41
(6)AddresstowhichtosendadditionalinformationtoanAssociateOffice.......................................... 41
(7)FailuretotimelysubmitadditionalinformationtoanAssociateoffice ........................................... 42
.09CircumstancesinwhichthetaxpayermustnotifytheAssociateoffice .............................................. 42
.10Determinesifproposedmethodofaccountingcanbemodifiedtoobtainfavorableletterruling......................... 43
.11 Near the completion of processing the Form 3115 advises the taxpayer if the Associate office will
ruleadverselyandoffersthetaxpayertheopportunitytowithdrawForm3115 ....................................... 43
.12 Advance consent Form 3115 may be withdrawn or Associate office may decline to issue a change in
methodofaccountingletterruling.............................................................................. 43
.13HowtocheckstatusofapendingadvanceconsentForm3115 ..................................................... 43
.14Serviceisnotboundbyinformalopinion........................................................................ 43
.15 Single letter ruling issued to a taxpayer or consolidated group for qualifying identical change in
methodofaccounting......................................................................................... 44
.16Letterrulingordinarilynotissuedforoneoftwoormoreinterrelateditemsorsubmethods............................ 44
.17ConsentAgreement........................................................................................... 44
.18 A copy of the change in method of accounting letter ruling is sent to appropriate Service official....................... 44
.19 Consent to change a method of accounting may be relied on subject to limitations................................... 44
.20Changeinmethodofaccountingletterrulingdoesnotapplytoanothertaxpayer..................................... 45
.21 Associate office discretion to permit requested change in method of accounting...................................... 45
.22 List of automatic change in method of accounting request procedures............................................... 45
.23OthersectionsofthisrevenueprocedurethatareapplicabletoForm3115........................................... 46
SECTION 10. HOW ARE CONFERENCES FOR LETTER RULINGS SCHEDULED?........................................ 47
.01Schedulesaconferenceifrequestedbytaxpayer.................................................................. 47
.02Permitstaxpayeroneconferenceofright........................................................................ 47
.03Disallowsverbatimrecordingofconferences..................................................................... 48
.04Makestentativerecommendationsonsubstantiveissues........................................................... 48
.05Mayofferadditionalconferences............................................................................... 48
.06Requireswrittenconfirmationofinformationpresentedatconference............................................... 48
.07Mayscheduleapre-submissionconference...................................................................... 48
.08Mayscheduleaconferencetobeheldbytelephone............................................................... 50
SECTION 11. WHAT EFFECT WILL A LETTER RULING HAVE?....................................................... 50
.01Maybereliedonsubjecttolimitations.......................................................................... 50
.02Willnotapplytoanothertaxpayer.............................................................................. 50
.03WillbeusedbyaFieldofficeinexaminingthetaxpayer’sreturn................................................... 50
.04Mayberevokedormodifiediffoundtobeinerrorortherehasbeenachangeinlaw................................. 50
.05Letterrulingrevokedormodifiedbasedonmaterialchangeinfactsappliedretroactively.............................. 51
.06Nototherwisegenerallyrevokedormodifiedretroactively......................................................... 51
.07Retroactiveeffectofrevocationormodificationappliedtoaparticulartransaction.................................... 51
.08Retroactiveeffectofrevocationormodificationappliedtoacontinuingactionorseriesofactions...................... 52
.09Generallynotretroactivelyrevokedormodifiedifrelatedtosaleorleasesubjecttoexcisetax......................... 52
.10 May be retroactively revoked or modified when transaction is entered into before the issuance of the
letterruling.................................................................................................. 52
.11Taxpayermayrequestthatretroactivitybelimited................................................................ 52
(1)Requestforreliefunder§7805(b)mustbemadeinrequiredformat............................................. 52
(2)Taxpayermayrequestaconferenceonapplicationof§7805(b)................................................. 53
SECTION 12. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS?................... 53
.01Inincomeandgifttaxmatters.................................................................................. 53
.02Inestatetaxmatters........................................................................................... 53
.03Ingeneration-skippingtransfertaxmatters....................................................................... 53
.04Inemploymentandexcisetaxmatters........................................................................... 54
January 3, 201242012–1 I.R.B.

.05Requestsconcerningincome,estate,orgifttaxreturns............................................................ 54
.06Reviewofdeterminationletters ................................................................................ 54
SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?.............................................. 54
.01Hassameeffectasaletterruling ............................................................................... 54
.02Taxpayermayrequestthatretroactiveeffectofrevocationormodificationbelimited................................. 54
(1)Requestforreliefunder§7805(b)mustbemadeinrequiredformat............................................. 54
(2)Taxpayermayrequestaconferenceonapplicationof§7805(b)................................................. 54
SECTION 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN A DIRECTOR
ANDANASSOCIATEOFFICE?
.......................................................................... 55
.01Requestsfordeterminationletters .............................................................................. 55
.02No-ruleareas ................................................................................................ 55
.03Requestsforletterrulings ..................................................................................... 55
.04LetterrulingrequestmistakenlysenttoaDirector................................................................ 55
SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER RULINGS
AND DETERMINATION LETTERS?
...................................................................... 55
.01Legislationauthorizinguserfees ............................................................................... 55
.02Requeststowhichauserfeeapplies ............................................................................ 55
.03Requeststowhichauserfeedoesnotapply...................................................................... 56
.04Exemptionsfromtheuserfeerequirements...................................................................... 56
.05Feeschedule................................................................................................. 56
.06 Applicable user fee for a request involving multiple offices, fee categories, issues, transactions, or
entities...................................................................................................... 56
.07 Applicable user fee for requests for substantially identical letter rulings or identical method of
accounting changes........................................................................................... 57
.08Methodofpayment........................................................................................... 59
.09Effectofnonpaymentorpaymentofincorrectamount ............................................................ 59
.10Refundsofuserfee........................................................................................... 59
.11Requestforreconsiderationofuserfee.......................................................................... 61
SECTION 16. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2011–1?................... 62
SECTION 17. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?....................... 63
SECTION 18. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE?...................................... 63
SECTION 19. PAPERWORK REDUCTION ACT........................................................................ 63
DRAFTING INFOR
MATION
......................................................................
................... 63
INDEX............................................................................................................ 65
APPENDIX A—SCHEDULE OF USER FEES........................................................................... 68
APPENDIX B—SAMPLE FORMAT FOR A LETTER RULING REQUEST................................................. 73
APPENDIX C—CHECKLIST FOR A LETTER RULING REQUEST....................................................... 76
APPENDIX D—LIST OF SMALL BUSINESS/SELF-EMPLOYED OPERATING DIVISION (SB/SE)
OFFICES TO WHICH TO SEND REQUESTS FOR DETERMINATION LETTERS
.............................. 81
APPENDIX E—CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR
REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES
........................... 83
.01Checklists,guidelinerevenueprocedures,andnotices............................................................. 83
.02Safeharborrevenueprocedures ................................................................................ 87
.03Automaticchangerevenueprocedures .......................................................................... 91
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
This revenue procedure explains how the Service provides advice to taxpayers on issues un-
der the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel
(Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Account-
Sec. 1
2012–1 I.R.B.5January 3, 2012

ing), 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 (TaxExempt 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.Seesection
4 of this revenue procedure for instructions on how obtain advice on issues outside the scope
of this revenue procedure.
Description of terms used in this
revenue procedure
.01For purposes of this revenue procedure—
(1) ) the term “Service” includes the four operating divisions of the Internal Revenue Service
and the Associate offices. Thefour operating divisions are:
(a) Large Business & International Division (LB&I), which generally serves corpo
rations,
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; es-
tates and trusts; individuals filing an individual Federal income tax return with accompanying
Schedule C (Profit or Loss From Business (Sole Proprietorship)), Schedule E (Supplemental
Income and Loss), Schedule F (Profit or Loss From Farming), Form 2106,Employee Busi-
ness Expenses, or Form 2106–EZ,Unreimbursed Employee Business Expenses; and individu-
als with international tax returns;
(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 As-
sociate 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 Divi-
sion 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 TaxOperations, SB/SE; Chief, Employment Tax
Operations, SB/SE; Chief, Excise Tax Operations, SB/SE; Director, Compliance, W&I Direc-
tor, Employee Plans Examinations; Director, Exempt Organizations Examinations; Director,
Federal, State & Local Governments; Director, Tax Exempt Bonds; or Director, Indian Tribal
Governments, 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.
Updated annually.02This 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.
Sec. 1
January 3, 201262012–1 I.R.B.

Letter ruling.01A “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 trans-
actions. A letter ruling interprets the tax laws and applies them to the taxpayer’s specific set
of facts. A letter ruling is issuedwhen 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.Seesection 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.Seesec-
tion 2.02 of this revenue procedure.
Closing agreement.02A “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 let
ter 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 a
greement on behalf
of the Service.
A closing agreement may be entered into when it is advantageous to have the matter perma-
nently 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 taxpay-
ers. If the issue and holding are identical for theclass 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.03A “determination letter” is a written determination issued by a Director that applies the
principles and precedents previously announcedby 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.04An “information letter” is a statement issuedby an Associate office or Director that calls
attention to a well-established interpretation or principle of tax law (including a tax treaty) with-
out 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 Ser-
vice. 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 Freedomof Information Act (the “FOIA”). Before any
information letter is made available to the public, an Associate office will redact any informa-
tion exempt from disclosure under the FOIA.See,e.g., 5 U.S.C. § 552(b)(6) (exemption for
Sec. 2.04
2012–1 I.R.B.7January 3, 2012

information the disclosure of which would constitute a clearly unwarranted invasion of per-
sonal 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 determination letters in response to oral requests from taxpayers. Service em-
ployees ordinarily will discuss with taxpayers or their representatives inquiries about whether
the Service will rule on particular issues and about procedural matters regarding the submis-
sion 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 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 represen-
tatives 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 ex-
amining 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 uncer-
tain as to whether an Associate office has jurisdictionwithregardtoaspecific factual situation
may call the telephone number for the Associate office listed in section10.07(1) of this revenue
procedure.
Sec. 2.04
January 3, 201282012–1 I.R.B.

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.Seesections 7 and
12 of this revenue procedure. For determinations related to code sections under the jurisdiction
of TE/GE.SeeRev. Proc. 2012–4, this Bulletin, and Rev. Proc. 2012–6, this Bulletin.
Issues under the jurisdiction
of the Associate Chief Counsel
(Corporate)
.01Issues under the jurisdiction of the Associate Chief Counsel (Corp
orate) include
those that involve consolidated returns, corporate acquisitions, re
organizations, liquidations,
redemptions, spinoffs, transfers to controlled corporations, distr
ibutions to shareholders, cor-
porate bankruptcies, the effect of certain ownership changes on net op
erating loss carryovers
and other tax attributes, debt vs. equity determinations, allocati
on 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)
.02Issues 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 estateinvestment trusts (REITs), regulated invest-
ment companies (RICs), real estate mortgage investment conduits (REMICs), insurance com-
panies and products, tax-exempt obligations, mortgage credit certificates, tax credit bonds (in-
cluding specified tax credit bonds), build America bonds, and financial products.
For the procedures to obtain private letter rulings involving tax-exempt state and local obli-
gations,seeRev. Proc. 96–16, 1996–1 C.B. 630.
Issues under the jurisdiction of the
Associate Chief Counsel (Income
Tax and Accounting)
.03Issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Account-
ing) 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, includingchanges 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)
.04Issues under the jurisdiction of the Associate Chief Counsel (International) include the
tax treatment of nonresident aliens and foreign corporations, withholding of tax on nonresi-
dent aliens and foreign corporations, foreigntax credit, determination of sources of income,
income from sources without the United States,subpart F questions, domestic international
sales corporations (DISCs), foreign sales corporations (FSCs), exclusions under § 114 for ex-
traterritorial income (ETI) international boycott determinations, treatment of certain passive
foreign investment companies, income affectedby 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,seeRev. Proc.
2006–9, 2006–1 C.B. 2
78, as modified by Rev. Proc. 2008–31, 2008–1 C.B. 1133.
For competent authority procedures related to bilateral and multilateral advance pricing
agreements,seeRev. Proc. 2006–54, 2006–2 C.B. 1035.
Issues under the jurisdiction
of the Associate Chief Counsel
(Passthroughs and Special
Industries)
.05Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special
Industries) include those that involve incometaxes of S corporations (except accounting pe-
riods 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’ protec-
tion and indemnity associations under § 526, and certain homeowners associations under § 528.
Issues under the jurisdiction
of the Associate Chief Counsel
(Procedure and Administration)
.06Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administra-
tion) include those that involve Federal tax procedure and administration, disclosure and pri-
vacy law, reporting and paying taxes (including payment of taxes under § 6166), assessing and
Sec. 3.06
2012–1 I.R.B.9January 3, 2012

collecting taxes (including interest and penalties), abating, crediting, or refunding overassess-
ments or overpayments of tax, and filing information returns.
Issues under the jurisdiction of
the Division Counsel/Associate
Chief Counsel (Tax Exempt and
Government Entities)
.07Issues under the jurisdiction of the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities) include the application of employment taxes and taxes on
self-employment income, and the tax treatment oftax-exempt organizations (including federal,
state, local, and Indian tribal governments), executive compensation and employee benefit pro-
grams (including changes in method of accounting), § 457 deferred compensation plans, and
the sale of stock to employee ownership plans oreligible worker-ownedcooperatives under
§ 1042. Note that certain issues involving exempt organizations, employee plans, and govern-
mental entities fall under the jurisdiction of the Commissioner, Tax Exempt and Government
Entities Division of the Internal Revenue Service; see Rev. Proc. 2012–4 and Rev. Proc.
2012–6.
SECTION 4. ON WHAT ISSUES
MUST WRITTEN ADVICE
BE REQUESTED UNDER
DIFFERENT PROCEDURES?
Alcohol, tobacco, and firearms
taxes
.01The 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.
Employee plans, individual
retirement accounts (IRAs), and
exempt organizations
.02The procedures for obtaining letter rulings, closing agreements, determination letters,
information letters, and oral advice on employee plans, IRAs, and exempt organizations are un-
der the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division.See
Rev. Proc. 2012–4, this Bulletin.See alsoRev. Proc. 2012–6, this Bulletin, for the procedures
for issuing determination letters on the qualifiedstatus 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 for letter rulings, closing agreements,
determination letters, information letters, and oral advice under the jurisdiction of the Commis-
sioner, Tax Exempt and Government Entities Division,seeRev. Proc. 2012–8, this Bulletin.
SECTION5. UNDERWHAT
CIRCUMSTANCES DO THE
ASSOCIATE OFFICES ISSUE
LETTER RULINGS?
In income and gift tax matters.01In 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 consentto the issuance of such a letter ruling.
Special relief for late S corporation
and related elections in lieu of
letter ruling process
.02In lieu of requesting a letter ruling under this revenue procedure, a taxpayer may obtain
relief for certain late S corporation and related elections by followingthe procedures in Rev.
Proc. 2004–49, 2004–2 C.B. 210; Rev. Proc. 2004–48, 2004–2 C.B. 172; Rev. Proc. 2003–43,
2003–1 C.B. 998, or Rev. Proc. 97–48, 1997–2 C.B. 521. These procedures are in lieu of the
letter ruling process and do not require payment of any user fee.Seesection 4.04 of Rev. Proc.
2004–49, section 3.01 of Rev. Proc. 2004–48, section 3.01 of Rev. Proc. 2003–43, section 3
of Rev. Proc. 97–48, and section 15.03(3) of this revenue procedure.
Sec. 3.06
January 3, 2012102012–1 I.R.B.

A § 301.9100 request for extension
of time for making an election or
for other relief
.03An Associate office will consider a requestfor an extension of time for making an elec-
tion 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)Formatofrequest. 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 addi-
tion, 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 of-
fice ordinarily will not issue a § 301.9100 ruling ifthe 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 timelymade, 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 Asso-
ciate 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. 2009–41Eligible en-
tities requesting a letter ruling because they donot 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
representation as part of the entity’s request fora 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 ofeach 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
Sec. 5.03
2012–1 I.R.B.11January 3, 2012

return (excluding extensions) as if the entity classification election had been in effect on the re-
quested 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 revenueprocedure, entities that satisfy the re-
quirements set forth in section 4.01 of Rev. Proc. 2009–41, 2009–39 I.R.B. 439, may apply
for late classification election relief underRev. Proc. 2009–41. Requests for such relief are
not subject to user fees.Seesection 3.01 of Rev. Proc. 2009–41 and section 15.03(2) of this
revenue procedure.
Determinations under § 999(d).04As provided in Rev. Proc. 77–9, 1977–1 C.B. 542, the Associate Chief Counsel (I
n-
ternational) issues determinations under § 999(d) that may deny certain benefit
softheforeign
tax credit and the deferral of earnings of foreign subsidiaries and domestic inte
rnational sales
corporations (DISCs) to a person if thatperson is a member of a controlled group (w
ithin the
meaning of § 993(a)(3)) that includes the person, or a foreign corporation of whic
hamember
of the controlled group is a United States shareholder, that agrees to particip
ate in, or cooperate
with, an international boycott. The same principles shall apply with respect t
o 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 pursua
nt to this revenue
procedure.
In matters involving § 367.05Unlesstheissueiscoveredbysection6ofthis 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 trans-
action 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 reor-
ganization. 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.06In 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.
TheAssociateofficewillnotissueletterrulingsfor prospective estateson 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 theAssociate office that the return has been filed.
Seesection 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 exam-
ined, 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 As-
sociate office that a return has been filed.Seesection 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 jurisdictionover the return, which may, by memorandum to the
Associate office, grant an additional period for the issuance of the letter ruling.
Sec. 5.03
January 3, 2012122012–1 I.R.B.

In matters involving additional
estate tax under § 2032A(c)
.07In matters involving additional estate tax under § 2032A(c), the Associate Chief Coun-
sel (Passthroughs and Special Industries) issues letter rulings onproposed transactions and on
completed transactions that occurred before the return is filed.
In matters involving qualified
domestic trusts under § 2056A
.08In matters involving qualified domestic trusts under § 2056A, the Associate Chief Coun-
sel (Passthroughs and Special Industries) issues letter rulings onproposed transactions and on
completed transactions that occurred before the return is filed.
In generation-skipping transfer
tax matters
.09In 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 rulingsare issued either before or after the trust or trust
equivalent has been established.
In employment and excise tax
matters
.10In employment and excise tax matters, the Associate offices issue letter rulings on pro-
posed 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
agencies and instrumentalities or their workers must be submitted directly to the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). Requests regarding
employment 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.Seesection 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 beencontacted 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
.11The Associate Chief Counsel (Procedure andAdministration) issues letter rulings on
matters arising under the Code and related statutes and regulations that involve—
(1) the time, place, manner, and proceduresfor reporting and paying taxes; or
(2) the filing of information returns.
In Indian tribal government
matters
.12Pursuant 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 en-
tity as an Indian tribal government within the meaning of § 7701(a)(40) or as a political subdi-
vision 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. Re-
quests for determinations under Rev. Proc. 84–37are 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 de-
fined 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 theSecretary of the Interior, that the subdivision
has been 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, desig-
nates the Indian tribal entities that appear on the current or future lists of federally recognized
Sec. 5.12
2012–1 I.R.B.13January 3, 2012

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 recognizedtribal 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)
.13The Associate Chief Counsel (Passthroughs and Special Industries) will issue letter rul-
ings 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 determi-
nation of the effect of a proposed transaction for Federal tax purposes.Seesection 6.14(5) of
this revenue procedure
Under some circumstances before
the issuance of a regulation or
other published guidance
.14In 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.
Seesection 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, theAssociate 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.
SECTION6. UNDERWHAT
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 litigation
.01The 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—
(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.Seesection 7.04(2) of this revenue
procedure. In income and gift tax matters, even if an examination has begun, an Associate
office ordinarily will issue the letter rulingif the Field office agrees by memorandum to the
issuance of the letter ruling.
Sec. 5.12
January 3, 2012142012–1 I.R.B.

Ordinarily not in certain areas
because of factual nature of the
problem or for other reasons
.02The 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.
2012–3, this Bulletin, and Rev. Proc. 2012–7, 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 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 con-
sidered appropriate and in the interest of sound tax administration, issue an information letter
calling attention to well-established principles of tax law.
Ordinarily not on part of an
integrated transaction
.03An 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 Office of Associate Chief Counsel (Corporate) may issue a lett
er ruling
on part of an integrated transaction without ruling on the larger transaction i
f the requested
ruling addresses one or more issues that: (1) are under the jurisdiction of the A
ssociate Chief
Counsel (Corporate), (2) are significant (as defined in section 3.01(39) of Re
v. Proc. 2012–3,
this Bulletin), and (3) involve the tax consequences or characterization of a
transaction (or part
of a transaction) that occurs in the context of a § 355 distribution. The Servic
e may also rule on
a particular legal issue under a code or regulations section without ruling
on all aspects of such
code or regulations section if the issue meets the three conditions of the pr
eceding sentence.
Before preparing the letter ruling request under this section 6.03, a taxpayer should call the
Office of the Associate Chief Counsel (Corporate) at the telephone number provided in section
10.07(1)(a) of this revenue procedure for pre-submission conferences to discuss with one of
the branches whether the Office of the Associate Chief Counsel (Corporate) will issue a letter
ruling under this section 6.03. The Service reserves the right to rule on any other aspect of the
transaction (including ruling adversely) if the Service believes it is in the interest of sound tax
administration.Cf. section 2.01 of Rev. Proc. 2012–3, this Bulletin.
All requests for a ruling under this section 6.03 must contain the following:
(1) A narrative description of the transaction that puts the issue in context;
(2) An explanation concerning why the issue is significant within the meaning of section
3.01(39) of Rev. Proc. 2012–3, this Bulletin;
(3) Applicable information from relevant revenue procedureswith respect to the significant
issue.SeeAppendix E of this revenue procedure (referring to,inter alia, Rev. Proc. 96–30,
1996–1 C.B. 696, as amplified and modified by Rev. Proc. 2003–48, 2003–2 C.B. 86);
(4) The precise ruling being requested;
(5) Where the taxpayer is requesting a ruling on the tax treatment of part of an integrated
transaction, a representation regarding the relevant tax consequences of the larger transaction
(to the best knowledge and belief of the taxpayer), assuming that the Associate office issues
the requested ruling; additionally, where the taxpayer is requesting a ruling on a particular
legal issue under a section of the code or regulations (e.g., § 1.368–2(k)), a representation (to
the best knowledge and belief of the taxpayer) regarding qualification or characterization of
the transaction under such code or regulations section (e.g., § 368(a)(1)(A)), assuming that the
Service issues the requested ruling; and
(6) A statement that no rulings outside the jurisdiction of the Associate Chief Counsel (Cor-
porate) are requested.
If the Service issues a ruling on a significant issue under this procedure, then the letter ruling
will state that no opinion is expressed as to the overall tax consequences of the transactions
Sec. 6.03
2012–1 I.R.B.15January 3, 2012

described in the letter ruling or as to any issue or step not specifically addressed by the letter.
In addition, letter rulings under this procedure will contain the following (or similar) language
at the beginning of the letter:
This Office expresses no opinion as to the overall tax consequences of th
e transaction(s)
described in this letter. Rather, the ruling(s) contained in this lette
ronlyaddressoneor
more discrete legal issues involved in the transaction.
Ordinarily not on which of two
entities is a common law employer
.04The 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
.05The 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.SeeRev. 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
.06The 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, liabil-
ity, or reporting obligations of the taxpayer would not be addressed in the ruling, because the
customer or client is not directlyinvolved in the letter ruling request. The tax liability of each
shareholder is, however, directly involved in a letter ruling on the reorganization of a corpora-
tion. 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 loc
al government obligations.
Ordinarily not to foreign
governments
.07The 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 As-
sociate 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.Seesection 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 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
.08The 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 legisla-
tion. 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 leg-
islation 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 proce-
dure. The Associate offices also may provide general information in response to an inquiry.
Not before issuance of a regulation
or other published guidance
.09Generally, 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 theissue 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. 2012–3,
this Bulletin, or Rev. Proc. 2012–7, this Bulletin.
Sec. 6.03
January 3, 2012162012–1 I.R.B.

Not on frivolous issues.10The 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 ofdue process, violates Thirteenth Amendment
protections against involuntary servitude, or is unenforceable because the Sixteenth Amend-
ment 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 is not taxable on income 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 Gov-
ernmental 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 re-
ceipts,” 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 groundlessissues 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).See also, “The Truth About Frivolous Tax Arguments” on
the IRS website at www.irs.gov/pub/irs-utl/friv_tax.pdf.
No “comfort” letter rulings.11Except as otherwise provided in Rev. Proc. 2012–3, this Bulletin (e.g., under section
3.01 (39)), where the Associate office already isrulingonasignificant issue in the same trans-
action), a letter ruling will not be issued with respect to an issue that is clearly and adequately
addressed by statute, regulations, decisions of acourt, revenue rulings, revenue procedures,
notices, or other authority published in the Internal Revenue Bulletin. The Associate office
mayinitsdiscretiondecidetoissuealetterrulingonsuchanissueiftheAssociateofficeis
otherwise issuing a ruling to the taxpayer on another issue arising in the same transaction.
Not on alternative plans or
hypothetical situations
.12The 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
.13An Associate office will not issue a letterruling on the replacement of involuntarily
converted property, whether ornot 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.Seesection 12.01 of this revenue procedure.
Sec. 6.13
2012–1 I.R.B.17January 3, 2012

Circumstances under which
determination letters are not
issued by a Director
.14A 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, con-
sidered 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 salesprice under § 4216(b) or § 4218(c),
which deal with specia
l provisions applicable to the manufacturers excise tax. The Associate
Chief Counsel (Passt
hroughs and Special Industries) will, in certain circumstances, issue letter
rulings in this area.
Seesection 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.Seesection 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 pay-
ment 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 (seesection 9.01(1)
of this revenue procedure) and certain changes in accounting periodsmade under automatic
change request procedures do not require payment of a user fee (seeAppendix E of this rev-
enue procedure). For additional user fee requirements,seesection 15 of this revenue procedure.
Specific and additional instructions also apply to requests for letter rulings and determina-
tion letters on certain matters. Those mattersare listed in Appendix E of this revenue proce-
dure 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 inter-
ested 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 incometax return, of all interested
parties;
(c) a description of the taxpayer’s business operations;
(d) a complete statement of the business reasons for the transaction; and
(e) a detailed description of the transaction.
(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 per-
tinent to the transaction, and foreign laws.
Sec. 6.14
January 3, 2012182012–1 I.R.B.

(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 l
anguage
other than English, the taxpayer must also submit a certified English translation
of the doc-
ument, along with a true copy of the document. For guidelines on the acceptability o
fsuch
documents,seeparagraph (c) of this section 7.01(2).
Each document other than the request should belabeled and attached to the request in al-
phabetical 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 publi-
cation; or (ii) a certified English translationsubmitted in accordance with paragraph (c) of this
section 7.01(2).
The taxpayer must identify the title and date ofpublication, including updates, of any widely
available and generally accepted publication that the taxpayer (or the taxpayer’s qualified trans-
lator) 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 translationsof laws in a language other than English.The
taxpayer must submit with the request an accurateand complete certified English translation
of the relevant parts of all contracts, wills, deeds, agreements, instruments, trust documents,
proposed disclaimers, and otherdocuments 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 eithercase, the translation
must be that of a qualified translator and must be attested to by the translator. The attestation
must contain: (i) a 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(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 representa-
tives, 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,
who 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.
Sec. 7.01
2012–1 I.R.B.19January 3, 2012

Same or similar issue 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 representa-
tives—
(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 requ
est (includ-
ing an application for change in method of accounting) involving the same or a simil
ar 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 anapplication 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
provisionofanincomeorestate
tax treaty
(6) Statement regarding interpretation of asubstantive 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 recog-
nition 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 govern-
ment, 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 po-
litical 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
Sec. 7.01
January 3, 2012202012–1 I.R.B.

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-sub-
mission conference prior to submitting the ruling request.Seesection 10.07 of this revenue
procedure as to pre-submission conferences. The taxpayer is strongly encouraged to inform
the Service about, and discuss the implicationsof, any authority believed to be contrary to the
position advanced, such as legislation, tax treaties, court decisions, regulations, notices, rev-
enue 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 tax-
payer 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 discussionof 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.
Statement identifying pending
legislation
(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.
Deletion statement required by
§6110
(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 (“deletion statement”). If the deletion 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 deletion statement within 21 calendar days.Seesection 8.05 of
this revenue procedure.
(a)Formatofdeletionstatement.A taxpayer who wants only names, addresses, and iden-
tifying 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 statutorybasis under § 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or determina-
tion letter is issued, additional deletion statements may be submitted.
(b)Locationofdeletionstatement.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.
Sec. 7.01
2012–1 I.R.B.21January 3, 2012

(d) Additional information.The taxpayer should follow the same procedures of this sec-
tion 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 com-
munications 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 Servicereceives 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 concerningmaterial 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 in-
tention 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 Rev-
enue (“Commissioner”) 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.(a) Authorized representatives. To sign the request or to
appear before the Service in connection with the request, thetaxpayer’s authorized represen-
tative must be (for rules on who may practice before the Service,seeTreasury Department
Circular No. 230, 31 C.F.R. part 10):
Attorney(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 cur-
rently under suspension or disbarment from practicebeforetheService.Heorshemustfilea
written declaration with the Service showing current qualification as an attorney and current
authorization to represent the taxpayer;
Certified public accountant(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 suspen-
sion or disbarment from practice before the Service. He or she must file awritten declaration
with the Service showing current qualification as a certified public accountant and current au-
thorization to represent the taxpayer;
Sec. 7.01
January 3, 2012222012–1 I.R.B.

Enrolled agent(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
declaration;
Enrolled actuary(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 un-
der 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;
Enrolled Retirement Plan Agent(5) An enrolled retirement plan agent is an individual currently enrolled as a re
tirement plan
agent who is not currently under suspension or disbarment from practice befor
e the Service.
He or she must file a written declaration as an enrolled actuary and current aut
horization to rep-
resent the taxpayer. Practice before the Service as an enrolled retirement pl
an agent is limited
to representation with respect to issues involving the following programs: E
mployee Plans De-
termination Letter program; Employee Plans Compliance Resolution System; a
nd Employee
Plans and Prototype and Volume Submitter program. Enrolled retirement plan a
gents also are
generally permitted to represent taxpayers with respect to IRS forms under
5300 and 5500 se-
ries, which are filed by retirement plans and plans sponsors, but not with re
spect to actuarial
forms and schedules; or
A person with a “Letter of
Authorization”
(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
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 prac-
tice before the Service to represent another person in a particular matter.
Representative authorized based
on relationship to taxpayer
(b)A regular full-time employeerepresenting his or her employer; a general partner rep-
resenting his or her partnership; abona fideofficer representing his or her corporation, asso-
ciation, 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.
Return preparer(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.
Seesection 10.3(f)(3) of Treasury Department Circular No. 230.
Foreign representative(d)A foreign representative, other than a personreferredtoinsubsections(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
Sec. 7.01
2012–1 I.R.B.23January 3, 2012

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,seesection 7.02(2)
of this revenue procedure.
The taxpayer’s authorized representative, whether or not enrolled, must comply with Trea-
sury Department Circular No. 230, which provides the rules for practice before the Service.
In situations where the Service believes that thetaxpayer’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 determina-
tion 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 re-
quest or the modification] contains all the relevant facts relating to the request, and such
facts are true, correct, and complete.”
Seesection 8.05(4) of this revenue procedure forthe penalties of perjury statement applica-
ble 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 num-
bers, as explained in section 7.01(11)(a) of this revenue procedure (one copy is the request
for the letter ruling or determination letter andthe 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 re-
questedontheissuepresented.
Sample format for a letter ruling
request
(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.
Sec. 7.01
January 3, 2012242012–1 I.R.B.

Checklist(18) Checklist for letter ruling requests.AnAssociateofficewillbeabletorespondmore
quickly to a taxpayer’s letter ruling request ifthe request is carefully prepared and complete.
The checklist in Appendix C of this revenue procedure is designed to assist taxpayers in prepar-
ing 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 check-
list in Appendix C.
Taxpayers can obtain copies of the checklist in Appendix C by calling (202) 622–72
80 (not
a toll-free call) or by accessing this revenue procedure in Internal Revenue Bu
lletin 2012–1 on
the IRS web site atwww.irs.gov. Taxpayers can access this revenue procedure on
the website
by following the “News” link, the “IRS Guidance” link, and the “Internal Revenu
e Bulletins
(after June 2003)” link to obtain Internal Revenue Bulletin 2012–1. A copy of th
is 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 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 whowants 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.
Power of attorney used to indicate
recipient of a copy or copies of a
letter ruling or a determination
letter
(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 determina-
tion letter, it will send the original to the taxpayer. The Service will not send the original letter
ruling or determination letter to the taxpayer’srepresentative. The Service may send copies of
the letter ruling or determination to the taxpayer’s representative, but it will not send copies to
more than two representatives.
Unless otherwise specified by the taxpayer on the Form 2848,Power of Attorney and Dec-
laration of Representative, the Service will send a copy of the letter ruling or determination
letter to the first representative listed on theForm 2848. If the taxpayer appoints more than
one representative on the Form 2848 and checks the Box (a) on Line 7, an additional copy will
be sent to the second representative listed on the Form 2848. The Service will not send a copy
of the letter ruling or determination letter to anyrepresentative if the taxpayer checks the Box
(b) on Line 7 on the Form 2848 indicating that notices or written communications from the
Service should not be sent to the taxpayer’s representative.
Taxpayers should use Form 2848 to appoint representatives. If a taxpayer does not use Form
2848, a copy of the letter ruling or determination letter will be mailed to the first representative
listed on the power of attorney unless the taxpayer specifies that an additional copy of the letter
ruling or determination letter should be mailed to a second representative or that no copies of
the letter ruling or determination letter should be mailed to the taxpayer’s representative.
Sec. 7.02
2012–1 I.R.B.25January 3, 2012

“Two-part” letter ruling requests(3) To request a particular conclusion on a proposed transaction.A taxpayer who re-
quests 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 partmust include a summary statement of the facts
the taxpayer believes to be controllingin 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 responsibili
ties pro-
vided 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 changeaccounting methods or periods,
applications for recognition of exempt statusunder § 521, or requests for rulings on employ-
ment 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.Seesection 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 toother 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. Notwithstanding the previ-
ous sentence, expedited handling may be available for certain issues under the jurisdiction of
the Associate Chief Counsel (Corporate), as provided below.
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 factoroutside a taxpayer’s control creates a real
business need to obtain a letter ruling or determination letter before a certain date to avoid se-
rious business consequences. Examples include situations in which a court or governmental
agency has imposed a specific deadline for thecompletion of a transaction, or where a trans-
action 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 cir-
cumstances that could not reasonably have beenanticipated 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 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.
Sec. 7.02
January 3, 2012262012–1 I.R.B.

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 letterscannot be processed out
of order, the Service urges all taxpayers to submit their requests well in advance of the contem-
plated 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
Appendix 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 in-
formation requested by the Service.
(a) Expedited Letter Ruling Process for Certain Requests Under the Jurisdiction of
the Associate Chief Counsel (Corporate): If a taxpayer requests a letter ruling on whether
a transaction constitutes a reorganization under § 368 or a distribution under § 355, or a letter
ruling involving certain significant issues under the jurisdiction of the Associate Chief Counsel
(Corporate) as described in section 6.03 of this revenue procedure, and the taxpayer asks for
expedited handling pursuant to this subsection,the Service will grant expedited handling. If
expedited handling is granted, the Service will endeavor to complete and issue the letter rul-
ing, subject to section 3.01(39) of Rev. Proc. 2012–3, within ten weeks of receiving the ruling
request. If the transaction involves an issue or issues not entirely within the jurisdiction of the
Associate Chief Counsel (Corporate), the letter ruling request will be processed in the usual
manner, unless each Associate Chief Counsel having jurisdiction over an issue in the transac-
tion agrees to process the letter ruling request on an expedited basis.
To initiate this process, the taxpayer must (i)stateatthetopofthefirstpageofthere-
quest letter “Expedited Handling is Requested” and (ii) provide the Associate Chief Counsel
(Corporate) with a copy of the request letter and Form 2848,Power of Attorney and Decla-
ration of Representative(seesection 7.01(14) of this revenueprocedure) by fax, without any
other attachments, when the formal request is submitted. The fax copy should be sent to (202)
622–7707, Attn: CC:CORP (Expedite); and receipt should be confirmed shortly after the fax
is sent by calling (202) 622–7700 (not a toll-free call), the telephone number for the office of
the Associate Chief Counsel (Corporate).Seesection 10.07(1)(a) of this revenue procedure.
In due course, the taxpayer must also provide the Associate Chief Counsel (Corporate) with
a draft ruling letter, in the format used by the Associate Chief Counsel (Corporate) in similar
cases, which sets forth the relevant facts, applicable representations, and requested rulings.See
section 7.02(3) of this revenue procedure. In addition, the taxpayer must ensure that the for-
mal submission of its letter ruling request complies with all of the requirements of this revenue
procedure, including the requirements of otherapplicable guidelines set forth in Appendix E of
this revenue procedure.Seesection 8.05(1) of this revenue procedure for a modified require-
ment regarding the submission of additional information. If the taxpayer does not satisfy the
requirements of this paragraph, the letter ruling request will be processed in the usual manner
instead of on an expedited basis.For further information regarding this expedited letter
ruling process for certain requests under the jurisdiction of the Associate Chief Counsel
(Corporate), call (202) 622–7700 (not a toll-free call), for pre-submission conferences with
the Office of Associate Chief Counsel (Corporate).Seesection 10.07(1)(a) of this revenue
procedure.
Faxtotaxpayerortaxpayer’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 f
ax.If the
taxpayer so requests, the Associate office may fax to the taxpayer or the taxp
ayer’s authorized
representative a copy of any document related to the letter ruling request (f
or 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
Sec. 7.02
2012–1 I.R.B.27January 3, 2012

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 Litiga-
tion 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), how-
ever, 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.Seesections 10.01, 10.02, and 11.11(2) of this revenue procedure.
Address to which to send request
for letter ruling or determination
letter
.03
(1) Request for letter ruling.Original letter ruling requests must be sent to the appropriate
Associate office. The packages shouldbe 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
BenFranklinStation
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 12
th
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
(c) Requests for letter rulings must not be submitted by fax. (But seesection 7.02(4) of this
revenue procedure regarding submissions of an initial fax in certain situations where expedited
handling is requested.)
(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:
Sec. 7.02
January 3, 2012282012–1 I.R.B.

Internal Revenue Service
Attn: Manager, Office of Pre-Filing and Technical Services
Large Business & International Division
SE:LB&I:PFT:PFTS
Mint Building, 3rd Floor
1111 Constitution Ave., NW
Washington, DC 20224
(b) SB/SE and W&I taxpayers should send requests for determination letters to the appro-
priate 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,seeRev. Proc. 2012–4, this Bulletin.
Pending letter ruling requests.04
(1) Circumstances under which the taxpayerwith a pending letterruling 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 ofthe 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;
(c) legislation that may affect the transaction has been introduced.Seesection 7.01(10) of
this revenue procedure; or
(d) another letter ruling request (includingan application for change in method of account-
ing), 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)TaxpayermustnotifytheAssociateofficeifareturnisfiledandmustattachthe
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 avoidpremature 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.
Thissection7.04alsoappliestopendingrequests 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 the original return, amended
return, and claim for refund.
When to attach letter ruling or
determination letter to return
.05A 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
Sec. 7.05
2012–1 I.R.B.29January 3, 2012

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 the original return, amended
return, and claim for refund.
How to check on status of request
for letter ruling or determination
letter
.06The taxpayer or the taxpayer’s authorized representative may obtaininformation regard-
ing 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.
Seesection 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 As-
sociate 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
doingso,theAssociateofficemaygivetheService 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.Seesection 7.07(1) of this revenue procedure.
(b) Notification of Service officialmay constitute Chief Counsel Advice.If the mem-
orandum to the Service official referred to in paragraph (a) of this section 7.07(2) provides
more than the fact that the request was withdrawnand that the Associate office was tentatively
adverse, or more than the fact that the Associateoffice 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 theAssociate office issues a letter ruling on some,
but not all, of the issues, the user fee will not be returned.Seesection 15.10 of this revenue
procedure for additional informationregarding 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.Seesection 9 of this revenue procedure for
procedures for change in method of accounting requests.
Docket, Records, and User Fee
Branch receives, initially controls,
and refers the request to the
appropriate Associate office
.01All 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.
Sec. 7.05
January 3, 2012302012–1 I.R.B.

Branch representative of the
Associate office contacts taxpayer
within 21 calendar days
.02Within 21 calendar days after a letter ruling request has been received in the branch
oftheAssociateofficethathasjurisdictionover the issue, a representative of the branch will
contact the taxpayer or, if the request includesa properly executed power of attorney, the au-
thorized 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 rep-
resentative 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 con-
clusion 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 jurisdicti
on of another branch or Associate office have been
referred to that branch or Associate offic
e 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 receivingthe 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 ac-
tuarial computations.
Determines if transaction can be
modified to obtain favorable letter
ruling
.03If less than a fully favorable letter ruling isindicated, 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.
Are not bound by informal opinion
expressed
.04The Service will not be bound by the informal opinion expressed by the branch repre-
sentative 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
.05
Must be submitted within 21
calendar days
(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 trans-
actions or documents needed from the taxpayer,the branch representative will request such
Sec. 8.05
2012–1 I.R.B.31January 3, 2012

information during the initial or subsequent contacts with the taxpayer or its authorized rep-
resentative. The representative 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 are encouraged to request that
the Associate office request additional information by fax.Seesection 7.02(5) of this revenue
procedure.
Material facts furnished to the Associate office by telephone or fax, or orally at a confer-
ence, 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.
The Service will not endeavor to process on an expedited basis a ruling request reg
ard-
ing reorganizations under § 368, distributions under § 355, or certain significa
nt issues under
the jurisdiction of the Associate ChiefCounsel (Corporate) as described in se
ction 6.03 of this
revenue procedure unless the branch representative in Associate Chief Counse
l (Corporate) re-
ceives all requested additional information within 10 calendar days from the d
ate of the request
for such additional information, unless an extension of time is granted.Seese
ction 7.02(4) of
this revenue procedure for information about seeking a request on an expedited
basis. If the
requested additional information is not provided within 10 calendar days (wi
th any extension)
but is provided within 21 calendar days (with any extension), the letter ruli
ng request will be
processed in the usual manner instead of on an expedited basis.
Extension of reply period if
justified and approved
(2) Extension of reply period. 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 thewritten 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
thetaxpayerdoesnotsubmit
additional information
(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 con-
tacts 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 statement for
additional information
(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 declara-
tion must be signed in accordance with the requirements in section 7.01(15)(b) of this revenue
procedure.
Faxing request and additional
information
(5) Faxing request and additional information.To facilitate prompt action on letter ruling
requests, taxpayers are encouraged to request that the Associate office request additional infor-
mation by fax.Seesection 7.02(5) of this revenue procedure. Taxpayers also are encouraged
to 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 per-
jury 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:
Sec. 8.05
January 3, 2012322012–1 I.R.B.

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
BenFranklinStation
Washington, DC 20044
For cases involving a request for change in method of accounting or pe
riod,seesection 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 information
(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
representative can provide the latter information to the taxpayer.
Number of copies of additional
information to be submitted
(8)Numberofcopies.A taxpayer only needs to submit one copy of the additional infor-
mation unless the Associate office requests additional copies.
Near the completion of th
eruling
process, advises the tax
payer of
conclusions and, if the A
ssociate
office will rule advers
ely, offers
thetaxpayertheopport
unity to
withdraw the letter rul
ing request
.06Generally, after the
conference of right is held but before the letter ruling is issued,
the branch representati
ve will orally notify the taxpayer or the taxpayer’s representative of the
Associate office’s conc
lusions.Seesection 10 of this revenue procedure for a discussion of
conferences of right. I
f the Associate office is going to rule adversely, the taxpayer will be
offered the opportunit
y to withdraw the letter ruling request. If, within ten calendar days of
the notification by the
branch representative, the taxpayer orthe taxpayer’s representative does
not notify the branch r
epresentative that the taxpayer wishes to withdraw the ruling request,
the adverse letter rul
ing will be issued unless an extension is granted. The user fee will not be
refunded for a letter r
uling request that is withdrawn.Seesection 15.10(1)(a) of this revenue
procedure.
May request that taxpayer submit
draft of proposed letter ruling
near the completion of the ruling
process
.07To 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 draftof the letter ruling. Such draft would be based
on the discussions of the issues between the representative and the taxpayer or the taxpayer’s
representative. The taxpayer is not required toprepare 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 becomepart 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
Sec. 8.07
2012–1 I.R.B.33January 3, 2012

information (for example, a penalties of perjury statement is required).Seesection 8.05(4) of
this revenue procedure.
Issues separate letter rulings
for substantially identical letter
rulings, but generally 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,Appli-
cation for Change in Accounting Method, requesting an identical change in method of account-
ing for multiple separate and distinct trades or businesses (including a qualified subchapter S
subsidiary or a single-member limited liability company of a taxpayer, multiple members of a
consolidated group, or multiple eligible CFCs ornoncontrolled § 902 corporations (10/50 cor-
porations) qualifying under section 15.07(4) for the user fee provided in paragraph (A)(5)(d) of
Appendix A of this revenue procedure, the Associate office generally will issue a single letter
on behalf of all separate and distinct trades or businesses of the taxpayer, all members of the
consolidated group, or all eligible CFCs or alleligible 10/50 corporations 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 classifi-
cation 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
generallysection 5.03 of this revenue procedure.
Sends a copy of the letter ruling to
appropriate Service official
.09The 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.
SECTION 9. WHAT ARE THE
SPECIFIC AND ADDITIONAL
PROCEDURES FOR A
REQUESTFORACHANGEIN
METHOD OF ACCOUNTING
FROM THE ASSOCIATE
OFFICES?
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 suc-
cessor), 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 Rev. Proc. 2011–14, 2011–4 I.R.B. 330; and as clarified and modified by Rev. Proc.
2009–39, 2009–2 C.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.
Automatic and advance consent
change in method of accounting
requests
.01
Automatic change in method
of accounting under Rev. Proc.
2011–14 (or any successor), or
other automatic change request
procedures
(1) Procedures for requesting an 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 inan 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 seesection 9.19 of this revenue procedure concerning review by an Associate
office and a Field office.
Sec. 8.07
January 3, 2012342012–1 I.R.B.

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.”Seesection 9.22 of this revenue procedure for a list of
automatic change request procedures.Seesection 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.
Nouserfeeisrequiredforachangemadeunder an automatic change request procedure.
Advance consent change in
method of accounting under Rev.
Proc. 97–27 (or any successor)
(2) Advance consent letter ruling requests.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, asamplified 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, 2009–2 C.B. 371 (or any
successor); 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.Seesection 15 and Appendix A of this revenue procedure for in-
formation about user fees.Seesection 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,anda
separate Form 3115 for each
taxpayer and for each separate
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 in-
cluded on a single Form 3115. For an example of such a situation,seesection 14.03 in the
Appendix of Rev. Proc. 2011–14, 2011–4 I.R.B. 330 or its successor.
A separate Form 3115 (and, therefore, a separate user fee pursuant to section 15 and Ap-
pendix 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 sin-
gle-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.
InformationrequiredwithaForm
3115
.03
Facts and other information(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 taxpayer’s present and proposed method for the item being changed, information regard-
ing 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 howthe law applies to the taxpayer’s situation,
Sec. 9.03
2012–1 I.R.B.35January 3, 2012

a discussion of whether the law related to the request is uncertain or inadequately addresses
the issue, a statement of the applicant’s reasonsfor 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 re-
quested 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 account-
ing, even if not specifically requested, includingan explanation of all material facts relevant
to the requested change in method of accounting.
See alsosections 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, revenueprocedures, 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 con-
tracts, agreements, and other documents relevant to the requested change in method of account-
ing 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 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 represen-
tatives, 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.SeeRev. 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 Rev. Proc. 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 methodof 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
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 requested ormade 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 de-
scription 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
Sec. 9.03
January 3, 2012362012–1 I.R.B.

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 a technical advice.
If the statement is affirmative, for each request, give the name(s) of the taxpayer, identifica-
tion number(s), the type of request (letter ruling, request for change in method of accounting,
or request for technical advice), andthe 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 attor-
ney, a certified public accountant, an enrolled agent, an enrolled actuary, a person with a “Letter
of Authorization,” an employee, general partner,bona fideofficer, administrator, trustee, etc.,
as described in section 7.01(13) of this revenue procedure.
Power of attorney and declaration
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 theService, and the conference and practice re-
quirements 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 represen-
tative’s authority.
Tax Information Authorization(10) Tax Information Authorization.A taxpayer may use Form 8821,Tax Information
Authorization, 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 statement(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 accompa-
nying schedules and statements, and to the best of my knowledge and belief, the applica-
tion contains all the relevant facts relating to the application, and it is true, correct, and
complete.”
Seesection 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 ofa limited liability company, a trustee on be-
half 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
Sec. 9.03
2012–1 I.R.B.37January 3, 2012

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 re-
garding those who are to sign.See alsosection 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
information required in certain
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.Seesection 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 con-
sent 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.
Seesection 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 taxpayeror the taxpayer’s authorized representative,
the taxpayer must submit a written request to faxthe 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 methodof accounting letter ruling.
The request to have correspondence relating to the Form 3115 faxed to the taxpayer or tax-
payer’s authorized representative must contain the fax number of the taxpayer or the taxpayer’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 AssociateChief 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 aconference in a later written communication,
if an adverse response is contemplated by the Associate office.Seesection 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 sen
dForms
3115
.05 Addresses to which to
send Forms 3115.Submit the original Form 3115, in the case
of an advance consent Fo
rm 3115, or the copy of the Form 3115, in the case of an automatic
change request, as foll
ows:
(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:
Sec. 9.03
January 3, 2012382012–1 I.R.B.

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 an
d the required user
fee (in the case of an advance consent Form 3115) or the national offic
e copy of the completed
Form 3115 (in the case of an automatic change request Form 3115 requir
ed to be filed with the
national office) to:
Internal Revenue Service
Tax Exempt & Government Entities
P.O. Box 2508
Cincinnati, OH 45201
SeeRev. Proc. 2012–8, 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]
Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
If a private delivery se
rvice is used, an exempt organization must send the original com-
pleted 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
SeeRev. Proc. 2012–8, 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
Sec. 9.05
2012–1 I.R.B.39January 3, 2012

(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
tobefiledwiththeOgdenoffice.If Rev. Proc. 2011–14, 2011–4 I.R.B. 330, or other pub-
lished 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
.06A completed 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
.07An advance consent Form 3115, is received andcontrolled by the Docket, Records, and
User Fee Branch, Legal Processing Division of the Associate Chief Counsel (Procedure and
Administration)(CC:PA:LPD:DRU)iftherequired user fee is submitted with the Form 3115.
Once controlled, the Form 3115 is forwarded to the appropriate Associateofficeforassignment
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 fur-
nished 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 re-
ply period for a request for additional information made after an initial request.Seesection
10.06 of this revenue procedure for the 21-day rule for submitting information after any con-
ference.
(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, mustbe 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.
Sec. 9.05
January 3, 2012402012–1 I.R.B.

(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 willnot 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 Asso-
ciate 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 are encouraged to request that
the Associate office request additional information by fax.Seesection 9.04(3) of this revenue
procedure.
Taxpayers also are encouraged to submit additional information by fax as soon as the infor-
mation 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 re-
quested 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 additionalinformation to an Associate office.
(a) Address if private delivery service not used.For a request for change in method of ac-
counting 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
BenFranklinStation
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
P. O. Box 2508
McPherson Station
Washington, DC 20038
Sec. 9.08
2012–1 I.R.B.41January 3, 2012

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:
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
BenFranklinStation
Washington, DC 20044
(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:
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
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)Iftaxpayerdoesnottimelysubmita
dditional information.
(a) Advance consent Form 3115.In the case of an advance consent Form 3115, if the re-
quired 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 representa-
tive 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;
Sec. 9.08
January 3, 2012422012–1 I.R.B.

(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 favorable letter ruling
.10For 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
thetaxpayertheopportunityto
withdraw Form 3115
.11Generally, 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.Seesection 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 decisionto 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 decline to issue a change in
method of accountingletterruling
.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.
Seesection 9.03(3) of this revenue procedure. Inappropriate 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 accounting, the Associate office will notify, inwriting, 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 de-
clines to grant a change in method of accounting,the memorandum may constitute Chief Coun-
sel 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.Seesection 15.10 of this revenue procedure for information
regarding refunds of user fees.
How to check status of a pending
advance consent Form 3115
.13The taxpayer or the taxpayer’s authorized representative may obtain information re-
garding 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.
Service is not bound by informal
opinion
.14The Service will not be bound by any informal opinion expressed by the branch repre-
sentative 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).
Sec. 9.14
2012–1 I.R.B.43January 3, 2012

Single letter ruling issued to a
taxpayer or consolidated group
for qualifying identical change in
method of accounting
.15For 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 affected separate and distinct trades or businesses of a taxpayer, all affected members of
the consolidated group, or all eligible and affected CFCs and 10/50 corporations.
Letter ruling ordinarily not issued
for one of two or more interrelated
items or submethods
.16If 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.
Consent Agreement.17Ordinarily, 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 Agree-
ment 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. Inaddition, a copy of the signed Consent Agree-
ment must be attached to the taxpayer’s income tax return for the year of change.Seesection
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 thesigned Consent Agreement should be attached
to the amended return for the year of change thatthe taxpayer files to implement the change in
method of accounting.
A taxpayer must secure the consent of the Commissioner before changing a method of ac-
counting for Federal income tax purposes.SeeTreas. 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 Agree-
ment 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 As-
sociate office having granted consent, taxpayersare not relieved of any interest, penalties, or
other adjustments resulting from improper implementation of the change.
A copy of the change in method of
accounting letter ruling is sent to
appropriate Service official
.18The Associate office will send a copy of eachchange in method of accounting letter rul-
ing, whether favorable or adverse, to the appropriate Service official in the operating division
that has examination jurisdiction of the taxpayer’s tax return.
Consent to change a method
of accounting may be relied on
subject to limitations
.19A taxpayer may rely on a change in method of accounting letter ruling received from
the Associate office, subject to certain conditions and limitations.Seesections 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 generallysections 6.01, 7, and 8 of Rev. Proc. 2011–14, 2011–4 I.R.B. 330 (or its succes-
sor). 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.Seesection 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.Seesection 9 of Rev. Proc. 2011–14.
Sec. 9.15
January 3, 2012442012–1 I.R.B.

Change in method of accounting
letter ruling does not apply to
another taxpayer
.20A taxpayer may not rely on a change in method of accounting letter ruling issued to
another taxpayer.See§ 6110(k)(3).
Associate office discretion to
permit requested change in
method of accounting
.21The 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.Seesection 8.01 of Rev. Proc. 97–27.
List of automatic change in
method of accounting request
procedures
.22For 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 automaticchange 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, 2011–1 C.B. 330 (or any successor). Rev. Proc. 2008–52 a
pplies
to the changes in method of accounting described in the Appendix of Rev. Proc. 20
11–14,
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));
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. 710 (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 farm-
ing);
Treas. Reg. § 1.472–2 (taxpayers changing tothe 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
Sec. 9.22
2012–1 I.R.B.45January 3, 2012

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)SeeAppendix E for the list of revenue procedures for automatic changes in accounting
period.
Other sections of this revenue
procedure that are applicable to
Form 3115
.23In 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. 2012–1);
2.01 (definition of “letter ruling”);
2.02 (definition of “closing agreement”);
2.05 (oral guidance);
3.01 (issues under the jurisdiction of theAssociate 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 Ac-
counting));
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 Spe-
cial Industries));
3.07 (issues under the jurisdiction of the Deputy Counsel/Deputy Associate Chief (Tax
Exempt and Government Entities));
5.03(2) (period of limitations 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 incertain 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 ru
lings ordinarily not issued on Federal tax consequences of proposed legisla-
tion);
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);
Sec. 9.22
January 3, 2012462012–1 I.R.B.

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. 2011–1);
17 (effect of Rev. Proc. 2012–1 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
.01A 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 request for a letter ruling involving the same taxpayer, they will be scheduled so as to
cause the least inconvenience to the taxpayer. Asstated 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 sec-
tion 8.05(2) (section 9.08(2)(a) for a changein method of accounting request) of this revenue
procedure regarding providing additional information.
Permits taxpayer one conference
of right
.02A taxpayer is entitled, as a matter of right, to only one conference in the Associate
office, except as explained under section 10.05of 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 an-
other, a representative from each branch withthe 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 discussionof 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 abranch to an Associate Chief Counsel or to
any other official of the Service.But seesection 10.05 of this revenue procedure for situations
in which the Associate office may offer additional conferences.
Sec. 10.02
2012–1 I.R.B.47January 3, 2012

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.Seesection 5.10 of this revenue procedure.
Disallows verbatim recording of
conferences
.03Because 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
.04The senior Associate office representative present at the conference ensures that the tax-
payer 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 com-
mitment regarding the conclusion that the Associate office will finally adopt.
May offer additional conferences.05The Associate office will offer the taxpayeran additional conference if, after the con-
ference 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 reversedat 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 confer-
ences 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
.06The taxpayer should furnish to the Associate office any additional data, reasoning, prece-
dents, etc. that were proposed by the taxpayer and discussed at the conference but not previ-
ously or adequately presented in writing. The taxpayer must furnish the additional information
within 21 calendar days from the date of the conference. If the additional information is not re-
ceived 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.Seesection 8.05 of this revenue procedure for instruc-
tions on submission of additional information for a letter ruling request other than a change in
method of accounting request.Seesection 9.08 of this revenue procedure for instructions on
submitting additional information for a change inmethod of accounting request.
May schedule a pre-submission
conference
.07Sometimes 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 pro-
cedural 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-sub-
mission conference will not be held on an incometaxissueif,atthetimethepre-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.Seesection 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 followinga pre-submission conference, the Associate of-
fice 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
Sec. 10.02
January 3, 2012482012–1 I.R.B.

will be sent to the Director of Pre-Filing & Technical Guidance. This memorandum may con-
stitute Chief Counsel Advice, as defined in § 6110(i), and may be subject to disclosure under
§ 6110.
(1) Taxpayer may request a pre-submissionconference 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 confer-
ence, 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 num-
ber 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) 622–7700 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Corporate);
(b) (202) 622–3900 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Financial Institutions and Products);
(c) (202) 622–4800 (not a toll-free call
) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Income Tax and
Accounting);
(d) (202) 622–3800 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (International);
(e) (202) 622–3000 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Passthroughs and Special Industries);
(f) (202) 622–3400 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Procedure and Administration); or
(g) (202) 622–6000 (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 cir-
cumstances, 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 is-
sueisanissueonwhichaletterrulingisordinarily 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 con-
ference, 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 conferenceis 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).
Sec. 10.07
2012–1 I.R.B.49January 3, 2012

May schedule a conference to be
held by telephone
.08Depending on the circumstances, conferences, including conferences of right and pre-
submission conferences, may be held by telephone. This may occur, for example, when a tax-
payer 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 delaythe ruling process. If a taxpayer makes such a
request, the branch reviewer will decide if it isappropriate in the particular case to hold a con-
ference 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 LETTER RULING
HAVE?
May be relied on subject to
limitations
.01A taxpayer ordinarily may rely on a letter ruling received from the Associate office
subject to the conditions and limitations described in this section.
Will not apply to another taxpayer.02A taxpayer may not rely on a letter ruling issued to another taxpayer.See§ 6110(k)(3).
Will be used by a Field office in
examining the taxpayer’s return
.03When 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 trans-
action 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. 2012–2, this Bulletin, relating to requests
for technical advice will be followed.Seesection 13.02 of Rev. Proc. 2012–2, 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.
May be revoked or modified if
found to be in error or there has
been a change in law
.04Unless 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 theperiod 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 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.
Sec. 10.08
January 3, 2012502012–1 I.R.B.

Consistent with these provisions, if a letter ruling relates to a continuing action or a series
of actions, it ordinarily will be applied untilany 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 mod-
ified 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 retroactively
.05An 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 retroactively
.06Where 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 let-
ter ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer’s
detriment. For example, the tax liability ofeach shareholder is directly involved in a letter
ruling on the reorganization of a corporation.Depending on all facts and circumstances, the
shareholders’ 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 re-
ceived 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 revocation
or modification applied to a
particular transaction
.07A 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.
Sec. 11.07
2012–1 I.R.B.51January 3, 2012

Retroactive effect of revocation
or modification applied to a
continuing action or series of
actions
.08If 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 revoca-
tion or modification to a date that is not earlierthan 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 ofactions ordinarily would be limited in the fol-
lowing situations whenthe 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 in-
come 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 provideda 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 theFederal 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 related to
sale or lease subject to excise tax
.09A letter ruling holding that the sale or lease of a particular article is subject to the manu-
facturer’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 revoked
or modified when transaction is
entered into before the issuance of
the letter ruling
.10A taxpayer is not protected against retroactive revocation or modification of a letter
ruling involving a transaction completed beforethe 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
.11Under § 7805(b), the Service may p
rescribe any extent to which a revocation or modi-
fication of a letter ruling will be ap
plied without retroactive effect.
A taxpayer to whom a letter ruling has been issued may request that the appropriate Asso-
ciate Chief Counsel limit the retroactive effectof 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 thisrevenue 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 discus-
sion 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.
Sec. 11.08
January 3, 2012522012–1 I.R.B.

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 modifying or revoking 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.
When notice is given by the Field office duringan 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 arequest for technical advice as explained in
section 14.02 of Rev. Proc. 2012–2, 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 CIRCUMSTANCES
DO DIRECTORS ISSUE
DETERMINATION LETTERS?
Directors issue determination letters only ifthe 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 representsthe 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.01In income and gift tax matters, Directors issue determination letters in response to tax-
payers’ written requests on completed transactions that affect returns over which they have
examination jurisdiction. A determination letter usually is not issued for a question concern-
ing 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.02In estate tax matters
, Directors issue determination letters in response to written re-
quests affecting the est
ate tax returns over which they haveexamination 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
.03In generation-skipping transfer tax matters, Directors issue determination letters in re-
sponse to written requests affecting the generation-skipping transfer tax returns over which they
Sec. 12.03
2012–1 I.R.B.53January 3, 2012

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
.04In employment and excise tax matters, Directors issue determination letters in response
to taxpayers’ written requests on completed transactions over which they have examination
jurisdiction.See alsosection 5.10 of this revenue procedure.
Requests concerning income,
estate, or gift tax returns
.05A 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 inany later examination of that return.
Review of determination letters.06Determination letters issued under sections 12.01 through 12.04 of this revenue proce-
dure are not reviewed by the Associate officesbefore they are issued. If a taxpayer believes
that a determination letter of this type is in error, the taxpayer may ask the Director to recon-
sider the matter or to request technical advice from an Associate office as explained in Rev.
Proc. 2012–2, this Bulletin.
SECTION 13. WHAT EFFECT
WILL A DETERMINATION
LETTER HAVE?
Has same effect as a letter ruling.01A 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.
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 theAssociateofficeasisrequiredforaletter
rulingfoundtobeinerror. TheFieldofficemust, 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).
Taxpayer may request that
retroactive effect of revocation or
modification be limited
.02Under § 7805(b), the Service may prescribe the extent to which a revocation or mod-
ification 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 proposesto 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 Asso-
ciate office.Seesection 14.02 of Rev. Proc. 2012–2, this Bulletin.
Forma
tofrequest
(1) Re
quest 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.Seesection 14.02 of Rev. Proc. 2012–2, 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 regardingthe application of § 7805(b), the taxpayer has
the right to a conference with the Associate office to the same extent as does any taxpayer
Sec. 12.03
January 3, 2012542012–1 I.R.B.

who is the subject of a technical advice request.Seesection 14.04 of Rev. Proc. 2012–2, this
Bulletin.
SECTION 14. UNDER WHAT
CIRCUMSTANCES ARE
MATTERS REFERRED
BETWEEN A DIRECTOR
AND AN ASSOCIATE OFFICE?
Requests for determination letters.01If 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 appropri-
ate Associate office for reply. The Field office will notify the taxpayerthat 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.02If the request involves an issue on which the Service will not issue a letter ruling or
determination letter, the request will not beforwarded 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.Seesection 6 of this revenue procedure for a description of no-rule areas.
Requests for letter rulings.03If 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, the Associate office will notify the taxpayer and will then for-
ward the request to the appropriate Field office for association with the related return.
Letter ruling request mistakenly
sent to a Director
.04If 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 REQUIREMENTS
FOR REQUESTS FOR
LETTER RULINGS AND
DETERMINATION LETTERS?
Legislation authorizing user fees.01Section 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 theTreasury 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 tocategories or subcategories established by the
Secretary; (2) be determined after taking intoaccount 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 averagefee applicable to each category or subcategory
must not be less than the amount specified in § 7528(b)(3).
Requests to which a use
rfee
applies
.02In general, user fe
es apply to all requests for—
(1) letter rulings (including advance consent Forms 3115,Application for Change in Ac-
counting Method), determination letters, and advance pricing agreements;
Sec. 15.02
2012–1 I.R.B.55January 3, 2012

(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 beaccompanied by the appropriate fee as deter-
mined 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
.03User fees do not apply to—
(1) elections made pursuant to § 301.9100–2, pertaining to automatic extensions of time
(seesection 5.03 of this revenue procedure);
(2) late initial classification elections made pursuant to Rev. Proc. 2009–41, 2009–39 I.R.B.
439 (seesection 5.03(6) of this revenue procedure);
(3) late S corporation and related elections made pursuant to Rev. Proc. 2004–49, 2004–2
C.B. 210; Rev. Proc. 2004–48, 2004–2 C.B. 172; Rev. Proc. 2003–43, 2003–1 C.B. 998; or
Rev. Proc. 97–48, 1997–2 C.B. 521 (seesection 5.02 of this revenue procedure); or
(4) requests for a change in accounting period or method of accounting permitted to be
made by a published automatic change revenue procedure (seesection 9.01(1) of this revenue
procedure);
(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
.04The 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 ofthe Code) submitted on Form SS–8,Determination of
Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding,orits
equivalent.
Fee schedule.05The 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 agreementsor 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, determinationletters, etc. under the jurisdiction of the Com-
missioner, Tax Exempt and Government Entities Division,seeRev. Proc. 2012–8, this Bul-
letin.
Applicable user fee for a request
involving multiple offices, fee
categories, issues, transactions, or
entities
.06
(1) Requests involving several offices.If a request dealing with only one transaction in-
volves 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 un-
Sec. 15.02
January 3, 2012562012–1 I.R.B.

der 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 in-
volved.SeeRev. Proc. 2012–8, 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 transac-
tion involves more than one fee category, only one fee applies, the highest fee that otherwise
would apply to each of thecategories involved.
(3) Requests involving several issues.If a request dealing with only one transaction in-
volves 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 account-
ingperioddealingwithonlyoneiteminvolvesseveral 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 un-
related 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 seesection
15.07 of this revenue procedure.
Applicable user fee for requests
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 sub-
mitted 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. 2012–1”;
(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 amountof user fee submitted for each taxpayer, entity,
or separate and distinct trade or business); and
(c) submit one check to cover all user fees.
If the Service determines
that the letter ruling requests do not qualify for the user fee pro-
vided in paragraph (A)(5)
of Appendix A of this revenue procedure, the Service will request
the proper fee.Seesectio
n 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 identi-
cal letter rulings (including accounting period,method of accounting, and earnings and profits
Sec. 15.07
2012–1 I.R.B.57January 3, 2012

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,Form3115,Application for
Change in Accounting Method, and Form 5452,Corporate Report of Nondividend Distribu-
tions)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 un-
derlying documents are not identical.
(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 sub-
stantially identical plans for administering the95-percent requirement of § 143(d)(1) following
the submission and approval of an initial plan foradministering 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.
Each of the following situations (separately,but not in any combination) are eligible for the
user fees provided in paragraphs (A)(5)(b) and (d) of Appendix A of this revenue procedure:
(a) A common parent of a consolidated group or other taxpayer requests 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—
(i) members of that consolidated group or
(ii) separate and distinct trades or businesses (for purposes of § 1.446–1(d)) of that taxpayer
or member(s) of the consolidated group. Separate and distinct trades or businesses, include
QSubs and single member LLCs;
(b) A common parent of a consolidated group requests the identical change in method of ac-
counting on a single Form 3115 or an extension of time to file Form 3115 under § 301.9100–3
for the identical change in method of accounting, on behalf of two or more controlled foreign
corporations (CFCs) or noncontrolled § 902 corporations (10/50 corporations) that do not en-
gage in a trade or business within the United States where all controlling U.S. shareholders
of the CFCs and all majority domestic corporate shareholders of the 10/50 corporations are
members of the consolidated group; or
(c) A taxpayer requests an identical changein method of accounting on a single Form 3115
or an extension of time to file Form 3115 under § 301.9100–3 for the identical change in method
of accounting, on behalf of two or more CFCs or 10/50 corporations that do not engage in a
trade or business within the United States for which the taxpayer is the sole controlling U.S.
shareholder of the CFCs or the sole domestic corporate shareholder of the 10/50 corporations.
To qualify as an identical change in method of accounting, the multiple members of a con-
solidated group or separate anddistinct trades or businesses, or the multiple eligible CFCs or
10/50 corporations (applicants) must request tochange from an identical present method of ac-
counting 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 authorityfor the request, except for the § 481(a) adjust-
ments. If the Associate office determines thatthe requested changes in method of accounting
are not identical, additional user fees will be required before any letter ruling is issued.
Sec. 15.07
January 3, 2012582012–1 I.R.B.

The taxpayer or common parent must, for eachapplicant, for which the change in method
of accounting is being requested, attach to the Form 3115 a schedule providing the name, em-
ployer 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 membersof 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 consoli-
dated 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.
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 formultiple members of aconsolidated 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.08Each request to the Service for a letter ruling, determination letter, adv
ance 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 m
ust be accompanied
by a check or money order in U.S. dollars, payable to the Internal Revenue Ser
vice, 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 Servi
ce Center. If on
the Form 2553, an electing S corporation requests a ruling to use a fiscal ye
ar under section
6.03 of Rev. Proc. 2002–39, 2002–1 C.B. 1046, the Service Center will forwa
rd the request
to the Associate office. When the Associate office receives the Form 2553 f
rom 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
.09If 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, orreconsideration 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 re-
turn of a request to the taxpayer may adversely affect substantive rights if the request is not
perfected and resubmitted to theService 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.10In general, the user fee will not be refundedunless 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 sub-
sequent 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,
Sec. 15.10
2012–1 I.R.B.59January 3, 2012

the case will be considered closed and the failure to perfect will be treated as a withdrawal for
purposes of this revenue procedure.Seesection 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.Seesection 8.05(3) of
this revenue procedure (section 9.08(7) for arequest 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, andthe Service rules on some, but not all, of the
issues. The highest fee applicable to the issueson 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 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 reconsider-
ation, 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 accom-
panying 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 taxpayersubmits 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 re-
quests 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 reconsid-
eration 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 inthe 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 re-
vocation in whole or in part, of a previously issued letter ruling, determination letter, etc. The
fee accompanying the request for relief will be refunded.
Sec. 15.10
January 3, 2012602012–1 I.R.B.

(d) In a situation to which section 15.10(1)(e) of this revenue procedure applies, the tax-
payer requests reconsideration of the Service’s decision not to rule on an issue. Once the Ser-
vice 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, in-
cluding 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 pro-
cedure 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 Asso-
ciate Chief Counsel.
Request for reconsideration of
user fee
.11A 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 inappli-
cable or incorrect and wishes to receive a refund of all or part of the amount paid (seesection
15.10 of this revenue procedure) may request reconsideration and, if desired, the opportunity
foranoraldiscussionbysendingalettertothe 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 RE-
QUEST.” No user fee is required for these requests. The request should be marked for the
attention of:
Sec. 15.11
2012–1 I.R.B.61January 3, 2012

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)
Deputy Chief Counsel/Deputy Associate
Chief Counsel (Tax Exempt and
Government Entities) letter ruling
requests
Deputy Chief Counsel/Deputy Associate Chief Counsel ( )
(Complete 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&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&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 & 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. 2011–1?
A new schedule of user fees, effective February 5, 2012 is provided in Appendix A.
Sec. 15.11
January 3, 2012622012–1 I.R.B.

SECTION 17. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
Rev. Proc. 2011–1, 2011–1 I.R.B. 1 is superseded. Rev. Proc. 2006–54 is superseded with
respect to the user fee provided therein.
SECTION 18. WHAT IS THE
EFFECTIVEDATEOFTHIS
REVENUE PROCEDURE?
This revenue procedure is effective January 3, 2012.
SECTION 19. PAPERWORK
REDUCTION ACT
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 Reduc-
tion 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 collec-
tion 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
(sub-
ject matter—rate orders; regulatory agency; normalization). This informati
on is required to
evaluate and process the request for a letter ruling or determination letter. I
n addition, this in-
formationwillbeusedtohelptheService delete certain information from the
text of the letter
ruling or determination letter before it is made available for public inspect
ionasrequiredby
§ 6110. The collections of information are required to obtain a letter rulin
g or determination
letter. The likely respondents are businesses or other for-profit institu
tions.
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, de-
pending on individual circumstances, with an estimated average burden of 80 hours. The esti-
mated 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 INFORMATIONThe principal author of this revenue procedure is Mark A. Shurtliff 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) 622–7700 (not a toll-free call),
(2) the Associate Chief Counsel (Financial Institutions and Products), contact Arturo
Estrada at (202) 622–3900 (not a toll-free call),
(3) the Associate Chief Counsel (Income Tax and Accounting), contact Brenda Wilson at
(202) 622–4800 (not a toll-free call),
(4) the Associate Chief Counsel (Passthroughsand Special Industries), contact David Kirk
at (202) 622–3060 (not a toll-free call),
(5) the Associate Chief Counsel (Procedure and Administration), contact George Bowden
or Henry Schneiderman at (202) 622–3400 (not a toll-free call),
(6) the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities),
contact Elliot Rogers at (202) 622–0047 (not a toll-free call), or
(7) the Associate Chief Counsel (International), contact Willard Yates at (202) 622–3164
(not a toll-free call).
Sec. 19
2012–1 I.R.B.63January 3, 2012

For further information regarding user fees, contact the Docket, Records, and User Fee
Branch at (202) 622–7280 (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 2012–4 and 2012–6, this bulletin.
January 3, 2012642012–1 I.R.B.

INDEX
References are to sections in Rev. Proc. 2012–1
Additional Information
—penaltiesofperjurystatementrequired ......................................................................... 8.05(4)
—proposeddeletionsunder§6110 ............................................................................. 7.01(11)
—informationrequestedduringinitialandsubsequentcontacts ........................................................8.05
failuretosubmit......................................................................................... 8.05(3)
subsequentinformationafterconference .....................................................................10.06
—wheretosend ............................................................................................... 8.05(6)
Changes in Method of Accounting or Accounting Period
— applicable sections of Rev. Proc. 2012–1 for changes in method of accounting
..................................................................................................................9
— applicable sections of Rev. Proc. 2012–1 for accounting period...............................................AppendixE
—automaticchangerevenueprocedures............................................................9.01,9.22,AppendixE
— identical changes in method of accounting.......................................................9.15,15.07,AppendixA
—userfees ...............................................................................................AppendixA
Checklist Required............................................................................... 7.01(18),AppendixC
Conferences
—offered .......................................................................................................10.02
afterconferenceofright ....................................................................................10.05
applicationof§6110 .................................................................................7.01(11)(e)
—requestingaconference ...................................................................................... 7.02(6)
—scheduling..............................................................................................10.01,10.02
applicationof§7805(b) .........................................................................11.11(2),13.02(2)
pre-submissionconferences.................................................................................10.07
telephoneconferences .....................................................................................10.08
Definitions
—Associateoffice ............................................................................................. 1.01(2)
—closingagreement ..............................................................................................2.02
—determinationletter.............................................................................................2.03
—Director .................................................................................................... 1.01(3)
Fieldoffice.............................................................................................. 1.01(4)
—informationletter...............................................................................................2.04
—letterruling ....................................................................................................2.01
—Service..................................................................................................... 1.01(1)
—taxpayer.................................................................................................... 1.01(5)
Determinations Under § 999(d)....................................................................................5.04
Discussions Not Binding on Service
—atpre-submissionconference ................................................................................10.07(4)
—informalopinionexpressed ......................................................................................8.04
—oraladvicetotaxpayers ...................................................................................... 2.05(2)
Employee Plans and Exempt Organizations
— jurisdiction of Commissioner, Tax Exempt and Government Entities
Division.......................................................................................................4.02
—userfees ......................................................................................................4.02
Estate Tax Matters
—issuanceofdeterminationletters ..........................................................................12.02,12.05
—issuanceofletterrulings ........................................................................................5.06
under§2032A(c) ..........................................................................................5.07
Expedited Handling of Letter Ruling and Determination Letter Requests......................................... 7.02(4)
2012–1 I.R.B.65January 3, 2012

INDEX
References are to sections in Rev. Proc. 2012–1
Extension of Time
—toscheduleconference .........................................................................................10.01
—tosubmitadditionalinformation .............................................................................. 8.05(2)
Fax Transmission
— to receive letter ruling....................................................................................... 7.02(5)
— to receive request for additional information.................................................................... 7.02(5)
—tosubmitadditionalinformation .............................................................................. 8.05(5)
—letterrulingrequestsmustnotbesubmittedbyfax ............................................................7.03(1)(c)
Hand Delivery of Letter Ruling Requests........................................................................ 7.03(1)
No-Rule Areas......................................................................................................6
Oral Advice to Taxpayers.........................................................................................2.05
Penalties of Perjury Statement
—formforletterrulingrequest ...............................................................................7.01(15)(a)
—formforsubmissionofadditionalinformation .................................................................. 8.05(4)
—requiredwithdraftletterruling...................................................................................8.07
—signaturerequirements ....................................................................................7.01(15)(b)
Pending Letter Ruling Requests
—whentoattachacopytoreturn................................................................................ 7.04(2)
estatetaxmatters ...........................................................................................5.06
—whentonotifyAssociateoffice ..................................................................................7.04
estatetaxmatters ...........................................................................................5.06
Power of Attorney
—Form2848 ..................................................................................... 7.01(14)and7.02(2)
originalsenttothetaxpayer .............................................................................. 7.02(2)
copysenttoarepresentative .............................................................................. 7.02(2)
copiessenttomultiplerepresentatives ..................................................................... 7.02(2)
nocopysenttorepresentatives ............................................................................ 7.02(2)
—signaturerequirements ......................................................................................7.01(14)
Public Disclosure of Information Letters...........................................................................2.04
Public Inspection Under § 6110................................................................................ 7.01(11)
—signaturerequirements ....................................................................................7.01(11)(c)
Representatives
—compliancewithTreasuryDepartmentCircularNo.230.........................................................7.01(13)
—powerofattorneyrequired...................................................................................7.01(14)
—requirements...............................................................................................7.01(13)
authorizedrepresentatives .............................................................................7.01(13)(a)
authorizedbasedonrelationship .......................................................................7.01(13)(b)
returnpreparer .......................................................................................7.01(13)(c)
foreignrepresentative .................................................................................7.01(13)(d)
Retroactive Revocation or Modification
—ofdeterminationletter ............................................................................................13
requesttolimitretroactiveeffect.............................................................................13.02
—ofletterruling ..........................................................................................11.05–11.10
requesttolimitretroactiveeffect.............................................................................11.11
Revenue Rulings
—effectonaletterruling .........................................................................................11.04
January 3, 2012662012–1 I.R.B.

INDEX
References are to sections in Rev. Proc. 2012–1
—requesttolimitretroactiveeffect.................................................................................11.11
Sample of a Letter Ruling Request................................................................ 7.01(17),AppendixB
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),AppendixA
Tax Exempt and Government Entities
—jurisdictionofCommissioner,TaxExemptandGovernmentEntitiesDivision ..........................................4.02
—userfees ......................................................................................................4.02
User Fees
—scheduleofuserfees.....................................................................................AppendixA
—userfeerequirements..............................................................................................15
toreopencase........................................................................................... 8.05(3)
Where to Send
—determinationletterrequest ......................................................................................7.03
—letterrulingrequest ........................................................................................7.03,9.05
additionalinformation.............................................................................8.05(6),9.08(6)
handdelivery............................................................................................ 7.03(1)
Withdrawal of Letter Ruling and Determination Letter Requests....................................................7.07
2012–1 I.R.B.67January 3, 2012

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 RECEIVED
PRIOR TO
FEBRUARY 5, 2012
USER FEE FOR
REQUESTS
RECEIVED AFTER
FEBRUARY 4, 2012
(1) User fee for a request for a determination letter from a Director.
The user fee for each determination letter request governed by Rev. Proc.
2012–1, this revenue procedure.$275$275
(2) User fee for a request for an advance pricing agreement or a
renewal of an advance pricing agreement.
Seesection 4.12 of Rev.
Proc. 2006–9, 2006–1
C.B. 278.
(3) User fee for a request for a letter ruling or closing agreement.Except
for the user fees for advance pricing agreements and renewals, the reduced
fees provided in paragraph (A)(4) of this appendix, the user fees provided in
paragraph (A)(5) of this appendix, and the exemptions provided in section
15.04 of Rev. Proc. 2012–1, this Bulletin, the user fee for each request for a
letter ruling or closing agreement under the jurisdiction of the Associate
Chief Counsel (Corporate), the Associate Chief Counsel (Financial
Institutions and Products), the Associate Chief Counsel (Income Tax and
Accounting), the Associate Chief Counsel (International), the Associate
Chief Counsel (Passthroughs and Special Industries), the Associate Chief
Counsel (Procedure and Administration), or the Division Counsel/Associate
Chief Counsel (Tax Exempt and Government Entities) is as follows:
(a) Accounting periods
(i) Form 1128,Application to Adopt, Change, or Retain a
Tax Year, (except as provided in paragraph (A)(4)(a) or
(b) of this appendix)$3,200$2,700
(ii)
Requests made on Part II of Form 2553,Election by a
Small Business Corporation, to use a fiscal year based
on a business purpose (except as provided in paragraph
(A)(4)(a) or (b) of this appendix)$3,200$2,700
(iii) Letter ruling requests for extensions of time to file Form
1128,Application to Adopt, Change, or Retain a Tax
Year, Form 8716,Election To Have a Tax Year Other
Than a Required Tax Year,orPartIIofForm2553
under § 301.9100–3 (except as provided in paragraph
(A)(4)(a) or (b) of this appendix)$2,300$2,700
(b) Changes in Methods of Accounting
(i)
Advance consent Form 3115,Application for Change
in Accounting Method(except as provided in paragraph
(A)(4)(a) or (b), or (5)(b) of this appendix)$4,200$7,000
(ii) Letter ruling requests for extensions of time to file Form
3115,Application for Change in Accounting Method,
under § 301.9100–3 (except as provided in paragraph
(A)(4)(a) or (b), or (5)(c) of this appendix)$5,000$8,000
January 3, 2012682012–1 I.R.B.

CATEGORY
USER FEE FOR
REQUESTS RECEIVED
PRIOR TO
FEBRUARY 5, 2012
USER FEE FOR
REQUESTS
RECEIVED AFTER
FEBRUARY 4, 2012
NOTE: No user fee is required if the change in accounting
period or method of accounting is permitted to be made
pursuant to a published automatic change request procedure.
Seesection 9.22 and Appendix E of Rev. Proc. 2012–1, this
revenue procedure, for the list of automatic change request
procedures published and/or in effect as of December 31, 2011.
(c) Letter ruling request for relief under § 301.9100–3
$14,000$10,000
(d) All other letter ruling requests (including accounting period
and method of accounting requests other than those properly
submitted on Form 1128,Application to Adopt, Change, or
RetainaTaxYear, Part II of Form 2553,Election by a Small
Business Corporation, or Form 3115,Application for Change
in Accounting Method) (except as provided in paragraph
(A)(4)(a) or (b), or (5)(a) of this appendix)$14,000$18,000
(e) Requests for closing agreements on a proposed transaction or
on a completed transaction before a return for the transaction
has been filed in which a letter ruling on that transaction is not
requested or issued (except as provided in paragraph (A)(4)(a)
or (b) of this appendix)$14,000$18,000
(f) A request for a Foreign Insurance Excise Tax Waiver
Agreement$4,000$8,000
NOTE: A taxpayer who receives relief under § 301.9100–3 (for
example, an extension of time to file Form 3115,Application for
Change in Accounting Method) will be charged a separate user fee
for the letter ruling request on the underlying issue (for example, the
accounting period or method of accounting application).
(4) Reduced user fee for a request for a letter ruling, method or period
change or closing agreement.A reduced user fee is provided in the
following situations if the person provides the certification described in
paragraph (B)(1) of this appendix:
(a) Request involves a personal or business tax issue from a
person with gross income (as determined under paragraphs
(B)(2), (3) and (4) of this appendix) of less than $250,000$625$2,000
(b) Request involves a personal or business tax issue from a
person with gross income (as determined under paragraphs
(B)(2), (3), and (4) of this appendix) of less than $1 million
and $250,000 or more.$2,000$4,000
(5) User fee for substantially identical letter ruling requests, identical
changes in method of accounting, or plans from issuing authorities
under § 25(c)(2)(B).If the requirements of section 15.07 of Rev. Proc.
2012–1, this revenue procedure, are satisfied, the user fee for the following
situations is as follows:
(a) Substantially identical letter rulings requested (other than
changes in methods of accounting requested on Form 3115)
2012–1 I.R.B.69January 3, 2012

CATEGORY
USER FEE FOR
REQUESTS RECEIVED
PRIOR TO
FEBRUARY 5, 2012
USER FEE FOR
REQUESTS
RECEIVED AFTER
FEBRUARY 4, 2012
Situations in which a taxpayer requests substantially identical
letter rulings for multiple entities with a common member or
sponsor, or for multiple members of a common entity, or for
two or more identical trusts or for multiple beneficiaries of a
trust or a trust divided into identical subtrusts or for husband
and wife making split gifts, for each additional letter ruling
request after the $18,000 fee or reduced fee, as applicable, has
been paid for the first letter ruling request$2,000$1,800
NOTE: Each entity or member that is entitled to the user fee
under paragraph (A)(5)(a) of this appendix, that receives relief
under § 301.9100–3 (for example, an extension of time to file
an election) will be charged a separate user fee for the letter
ruling request on the underlying issue.
(b) Identical change in method of accounting requested on a
single Form 3115,Application for Change in Accounting
Method, for a situation (but not a combination of situations)
described in section 15.07(4).
A situation (but not a combination of situations) described
in section 15.07(4) for each additional applicant seeking the
identical change in method ofaccounting on the same Form
3115 after the $7,000 fee or $2,000 reduced fee, as applicable,
has been paid for the first applicant.$150$150
(c)
Substantially identical plans under § 25(c)(2)(B)
Situations where an issuing authority under § 25 submits
substantially identical plans for administering the 95-percent
requirement of § 143(d)(1) following the submission of an
initial plan that was approved.$1,500$1,500
(d)
Extension of time requested to file Form 3115,Application
for Change in Accounting Method, for an identical change in
method of accounting for a situation (but not combination of
situations) described in section 15.07(4).
A situation (but not a combination of situations) described
in section 15.07(4), in which a common parent or other
taxpayer requests an extension of time under § 301.9100–3 to
file a single Form 3115 for the identical change in method
of accounting on behalf of twoor more applicants, for each
additional applicant seeking theidentical change in method of
accounting on the same Form 3115 after the $8,000 fee or
$2,000 reduced fee as applicable, has been paid for the first
applicant.$150$150
NOTE: When an extension of time to file Form 3115,
Application for Change in Accounting Method,isgranted
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.$0$0
(7) User fee for pre-filing agreements$50,000$50,000
(8) Tax treaty limitation of benefits.See Rev. Proc. 2006–54 for
procedures for requesting competent authorityassistance under tax treaties.$15,000$27,500
January 3, 2012702012–1 I.R.B.

(B)PROCEDURAL MATTERS
(1) Required certification.A person seeking a reduced user fee under paragraph (A)(4) of this appendix must provide the
following certification in orderto 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)(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 attachedas part of the ruling request.
(2) Gross income for a request involving a personal tax issue.For purposes of the reduced user fees provided in paragraphs
(A)(4)(a) and (b) of this appendix of—
(a) U.S. citi
zens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to “total
income” as re
ported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the requ
est is filed, plus any interest income not subject to tax under§ 103 (interest on state and local bonds) for that period.
“Total inco
me” is a line item on Federal tax returns. For example, if the 2010 Form 1040,U.S. Individual Income Tax Return,isthe
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 o
f 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 file
d 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
taxreturnf
iled for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions
required t
o 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 certif
ication 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) thegrantor’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 administratorof 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
incom
e as defined under paragraph (B)(2)(a) of this appendix, plus “cost of goods sold” as reported on the same Federal income
tax re
turn.
2012–1 I.R.B.71January 3, 2012

(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,“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. If a domestic partnership or 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 or corporation were 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 taxableyear 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 income tax return for
a full taxable year, the reduced user fee in paragraph (A)(4)(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 $1 million
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 related taxpayer who is involved in the
transaction on which the letter ruling or closingagreement 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.
January 3, 2012722012–1 I.R.B.

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)orDivision
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities)
Attn: CC:PA:LPD:DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
DearSirorMa
dam:
(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 statementto that effect must be attached to, or contained in, the letter
ruling request. The statement must explain the need for expedited handling.Seesection 7.02(4) of Rev. Proc. 2012–1, 2012–1
I.R.B. 1. Hereafter, all references are to Rev. Proc. 2012–1 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 acomplete statement of the facts relating to the transaction that is the subject of the letter ruling
request. This statement must include a detailed descriptionof the transaction, including material facts in any accompanying
documents, and the business reasons for the transaction.Seesections 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.Seesections 7.01(6), 7.01(8), 7.01(9),
and 7.01(10).]
2012–1 I.R.B.73January 3, 2012

D. ANALYSIS
[The ruling request must contain a discussion of the facts and ananalysis 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.Seesections
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 2012–1 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 requestedletter 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 requiredbysection7.01(6)regardingwhetherthetax 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.Seesection 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.Seesection 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.Seesection 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.Seesection 7.02(1).]
l.
[If the taxpayer is seeking to obtain the user fee providedinparagraph(A)(5)(a)ofAppendix A for substantially
identical letter rulings, the letter ruling request must contain the statements required by section 15.07.]
January 3, 2012742012–1 I.R.B.

2. Administrative
a. [The ruling request should state: “The deletion statementand checklist required by Rev. Proc. 2012–1 are enclosed.”
Seesections 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.Seesection 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.”Seesections 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:[Seesection 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:
SignatureTitleDate
(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.Seesection 7.01(15).]
2012–1 I.R.B.75January 3, 2012

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 authorizedrepresentative) and place it on top of your request.
If you are an authorized representative submitting a requestfor a taxpayer, you must include a completed checklist with the
request or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist is
submitted.If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will
not cause the return of your request or defer substantive consideration of your request.You should still complete as much of
the checklist as possible and submit it with your request.
TAXPAYER’S NAME
TAXPAYER’S I.D. NO.
ATTORNEY/P.O.A.
PRIMARY CODE SECTION
CIRCLE ONEITEM
Yes No1. 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), theAssociate Chief Counsel (Procedure and Administration), or the Division Coun-
sel/Associate Chief Counsel (TaxExempt and Government Entities)?Seesection 3 of Rev. Proc. 2012–1,
2012–1 I.R.B. 1. For issues under the jurisdiction of other offices,seesection 4 of Rev. Proc. 2012–1.
(Hereafter, all references are to Rev. Proc. 2012–1 unless otherwise noted.)
Yes No2. Have you read Rev. Proc. 2012–3, 2012–1 I.R.B. 114 and Rev. Proc. 2012–7, 2012–1 I.R.B. 233, 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/A3. If your request involves a matter on which letter rulings are not ordinarily issued, have you given com-
pelling 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 Of-
fice 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—
January 3, 2012762012–1 I.R.B.

(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/As-
sociate 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) 622–7280
(not a toll-free call);
(b) the Office of the Associate Chief Counsel (International), the appropriate branch to call may be ob-
tained by calling (202) 622–3800 (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?Seesection 5.01.
Yes No
5. Are you requesting the letter ruling ona hypothetical situation or question?Seesection 6.12.
Yes No6. Are you requesting the letter ruling on alternative plans of a proposed transaction?Seesection 6.12.
Yes No7. Are you requesting the letter ruling for only part of an integrated transaction?Seesections 6.03.
Yes No8. Are you requesting the letter ruling for a business, trade, industrial association, or similar group concern-
ing the application of tax law to its members?Seesection 6.05.
Yes No9. Are you requesting the letter ruling fora foreign government or its political subdivision?Seesection
6.07.
Yes No
Pages
10. Have you included a complete statement ofall the facts relevant to the transaction?Seesection 7.01(1).
Yes No N/A11. 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?Seesection 7.01(2).
Yes No N/A12. Have you submitted with the request a copy of all applicable foreign laws, and certified English trans-
lations of documents that are in a language other thanEnglish or of foreign laws in cases where English is
not the official language of the foreign country involved?Seesection 7.01(2).
Yes No13. 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?Seesection 7.01(3).
Yes No
Page
14. 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?Seesection 7.01(4).
Yes No
Page
15. 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?Seesection 7.01(5)(a).
2012–1 I.R.B.77January 3, 2012

Yes No
Page
16. Have you included the required statement regardingwhether the taxpayer, a related taxpayer, a prede-
cessor, or any representatives previously submitted arequest (including an application for change in method
of accounting) involving the same or similar issue but withdrew the request beforethe letter ruling or de-
termination letter was issued?Seesection 7.01(5)(b).
Yes No
Page
17. 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?Seesection 7.01(5)(c).
Yes No
Page
18. Have you included the required statement regarding whether, at the same time as this request, the tax-
payer 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?Seesection 7.01(5)(d).
Yes No N/A
Page
19. 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?Seesection 7.01(6).
Yes No N/A
Page
20. 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?Seesection 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
Pages
21. Have you included the required statement of relevant authorities in support of your views?Seesection
7.01(8).
Yes No
Page
22. 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?Seesection 7.01(8).
Yes No
Pages
23. Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations,
notices, revenue rulings, or revenue procedures that youdeterminedtobecontraryto the position advanced?
Seesection 7.01(9), which states that taxpayers are encouraged to inform the Service of such authorities.
Yes No N/A
Page
24. If you determined that there are no contrary authorities, have you included a statement to this effect in
your request?Seesection 7.01(9).
Yes No N/A
Page
25. Have you included in your request a statement identifying any pending legislation that may affect the
proposed transaction?Seesection 7.01(10).
Yes No26. Have you included the deletion statement required by § 6110 and placed it on top of the letter ruling
request as required by section 7.01(11)(b)?
Yes No
Page
27. Have you (or your authorized representative) signed and dated the request?Seesection 7.01(12).
January 3, 2012782012–1 I.R.B.

Yes No N/A28. 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?Seesection 7.01(14).
Yes No
Page
29. Have you included, signed, and dated the penalties of perjury statement in the format required by section
7.01(15)?
Yes No N/A30. Are you submitting your request in duplicate if necessary?Seesection 7.01(16).
Yes No N/A
Pages
31. 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?Seesection 7.02(1).
Yes No N/A32. If you want copies of the letter ruling sent to a representative, does the power of attorney contain a
statement to that effect?Seesection 7.02(2).
Yes No N/A33. 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?Seesection 7.02(2).
Yes No N/A34. If you are making a two-part letter ruling request, have you included a summary statement of the facts
you believe to be controlling?Seesection 7.02(3).
Yes No N/A
Page
35. 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? Note that certain requests under the jurisdiction of the Associate Chief
Counsel (Corporate) may receive expedited treatment without stating a compelling need.Seesection 7.02(4)
of this revenue procedure.
Yes No N/A
Page
36. If you are requesting a copy of any document relatedto the letter ruling request to be sent by facsimile
(fax) transmission, have you included a statement to that effect?Seesection 7.02(5).
Yes No N/A
Page
37. 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?Seesection 7.02(6).
Yes No38. 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?Seesection 15 and Appendix A to determine the correct
amount.
Yes No N/A
Page
39. 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
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 $1 million, have you included the required certification?See
paragraphs (A)(4)(b) and (B)(1) of Appendix A.
Yes No N/A
Page
41. If you qualify for the user fee for substantially identical letter rulings, have you included the required
information?Seesection 15.07(2) and paragraph (A)(5)(a) of Appendix A.
2012–1 I.R.B.79January 3, 2012

Yes No N/A
Page
42. 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?Seesection 15.07(4) and paragraph (A)(5)(d) of Appendix A.
Yes No N/A43. If your request is covered by any of the checklists, guideline revenue procedures, notices, safe harbor
revenue procedures, or other specialrequirements 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 prepa-
ration of this letter ruling request (Cumulative Bulletin or Internal Revenue Bulletin citation not required).
Yes No N/A
Page
44. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all
of the requirements in section 11.11?
Yes No N/A
45. 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?Seesection 5.03(5)
of this revenue procedure.
Yes No46. Have you addressed your request to the attention of the Associate Chief Counsel (Corporate), the As-
sociate 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 Coun-
sel/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
BenFranklinStation
Washington, DC 20044
Ifaprivatedeliveryserviceisused,theaddressis:
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 aweek) in reaching CC:PA:LPD:DRU for initial
processing.
SignatureTitle or AuthorityDate
Typed or printed name of
person signing checklist
January 3, 2012802012–1 I.R.B.

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. 2012–1 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:
Chief, Estate & Gift Tax Operations
Internal Revenue Service
SE:S:SP:E&G
1222 Spruce Street
M/S 4000
St. Louis, MO 63103–2839
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
2012–1 I.R.B.81January 3, 2012

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
January 3, 2012822012–1 I.R.B.

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.
Checklists, guideline revenue
procedures, and notices
.01For requests relating to the following Codesections and subject matters, refer to the
following checklists, guideline revenue procedures, and notices.
CODE OR
REGULATION
SECTION
REVENUE PROCEDURE AND NOTICE
103, 141 – 150, 1394,
1400L(d), 1400N(a),
1400U–1, 1400U–3,
7478, and 7871
Issuance of state or
local obligations
Rev. Proc. 96–16, 1996–1 C.B. 630 (for a reviewable ruling under § 7478 and a nonreview-
able 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 re-
quest for approval must be submitted to the Assistant Secretary for Housing/Federal Housing
Commissioner of the Department of Housing and Urban Development.
1.166–2(d)(3)
Uniform express
determination letter
for making election
Rev. Proc. 92–84, 1992–2 C.B. 489.
Subchapter
C-Corporate
Distributions,
Adjustments, Transfers,
and Reorganizations
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
alsoRev. Proc. 2012–3, this Bulletin), Rev. Proc. 84–42, 1984–1 C.B. 521 (superseded as to
no-rule areas by Rev. Proc. 2012–3, this Bulletin), Rev. Proc. 86–42, 1986–2 C.B. 722, and
Rev. Proc. 89–50, 1989–2 C.B. 631.But seesection 3.01 of Rev. Proc. 2012–3, this Bul-
letin, (corporate distributions, transfers, and reorganizations under §§ 332, 351, 368(a)(1)(A),
368(a)(1)(B), 368(a)(1)(C), 368(a)(1)(E), 368(a)(1)(F), and 1036), which describes certain
corporate transactions where, generally, the Service will not issue letter rulings or determina-
tion letters.
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)
Checklist questionnaire
Rev. Proc. 81–42, 1981–2 C.B. 611.
311
Checklist questionnaire
Rev. Proc. 86–16, 1986–1 C.B. 546.
332
Checklist questionnaire
Rev. Proc. 90–52, 1990–2 C.B. 626.But seesection 3.01 of Rev. Proc. 2012–3, this Bulletin,
which describes certain corporate transactions where the Service will not issue letter rulings
or determination letters.
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.
2012–1 I.R.B.83January 3, 2012

351
Checklist questionnaire
Rev. Proc. 83–59, 1983–2 C.B. 575.But seesection 3.01 of Rev. Proc. 2012–3, this Bulletin,
which describes certain transfers to controlled corporations where the Service will not issue
letter rulings or determination letters.
355
Checklist questionnaire
Rev. Proc. 96–30, 1996–1 C.B. 696, as amplified and modified by Rev. Proc. 2003–48,
2003–2 C.B. 86.
368(a)(1)(E)
Checklist questionnaire
Rev. Proc. 81–60, 1981–2 C.B. 680.But seesection 3.01 of Rev. Proc. 2012–3, this Bulletin,
which describes circumstances under which the Service will not issue letter rulings or deter-
mination letters as to whether a transaction constitutes a corporate recapitalization within the
meaning of § 368(a)(1)(E) (or a transaction that also qualifies under § 1036).
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
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.
521
Appeal procedure
with regard to adverse
determination letters
and revocation or
modification of
exemption letter rulings
and determination
letters
Rev. Proc. 90–27, 1990–1 C.B. 514.
817(h)
Closing agreement for
inadvertent failures of
variable contracts
Rev. Proc. 2008–41, 2008–2 C.B. 155.
860
Self Determination of
Deficiency Dividend
Rev. Proc. 2009–28, 2009–20 I.R.B. 1011.
877, 2107, and
2501(a)(3)
Individuals who lose
U.S. citizenship or
cease to be taxed
as long-term U.S.
residents with a
principal purpose to
avoid U.S. taxes
Notice 97–19, 1997–1 C.B. 394, as modified by Notice 98–34, 1998–2 C.B. 29, and as obso-
leted in part by Notice 2005–36, 2005–1 C.B. 1007.
1362(b)(5) and 1362(f)
Relief for late
S corporation and
related elections under
certain circumstances
Rev. Proc. 2004–49, 2004–2 C.B. 210; Rev. Proc. 2003–43, 2003–1 C.B. 998, as supple-
mented by Rev. Proc. 2007–62, 2007–2 C.B. 786; Rev. Proc. 97–48, 1997–2 C.B. 521.
January 3, 2012842012–1 I.R.B.

1362(b)(5) and
301.7701–3
Automatic extensions
of time for late
S corporation election
and late corporate entity
classification
Rev. Proc. 2004–48, 2004–2 C.B. 172, as supplemented by Rev. Proc. 2007–62, 2007–2
C.B. 786.
1.1502–13(e)(3)
Consent to treat
intercompany
transactions on a
separate entity basis
and revocation of this
consent
Rev. Proc. 2009–31, 2009–2 C.B. 107.
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
change method of
allocating affiliated
group’s consolidated
federal income tax
liability
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.
2642
Allocations of
generation-skipping
transfer tax exemption
Rev. Proc. 2004–46, 2004–2 C.B. 142, provides analternative 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
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.
4980B
Failure to satisfy
continuation coverage
requirements of group
health plans
Rev. Proc. 87–28, 1987–1 C.B. 770 (treating references to former § 162(k) as if they were
references to § 4980B).
7701
Relief for a late initial
classification election
for a newly formed
entity
Rev. Proc. 2009–41, 2009–39 I.R.B. 439.
2012–1 I.R.B.85January 3, 2012

7701(a)(40) and
7871(d)
Indian tribal
governments and
subdivision of Indian
tribal governments
Rev. Proc. 84–37, 1984–1 C.B. 513, as modified by Rev. Proc. 86–17, 1986–1 C.B. 550,
and Rev. Proc. 2012–1, this revenue procedure, (provides guidelines for obtaining letter
rulings recognizing Indian tribal government ortribal 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).
301.7701–2(a)
Classification of
undivided fractional
interests in rental real
estate
Rev. Proc. 2002–22, 2002–1 C.B. 733 (specifies the conditions under which the Service will
consider a letter ruling requestthat 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).
301.7701–3
Automatic extensions
of time for late
S corporation election
and late corporate entity
classification
Rev. Proc. 2004–48, 2004–2 C.B. 172.
301.9100–3
Extension of time
to make entity
classification election
Rev. Proc. 2009–41, 2009–39 I.R.B. 439.
7702
Closing agreement for
failure to account for
charges for qualified
additional benefits
Rev. Proc. 2010–26, 2010–30 I.R.B. 91.
7702
Closing agreement for
failed life insurance
contracts
Rev. Proc. 2008–40, 2008–2 C.B. 151.
7702A
Closing agreement
for inadvertent
non-egregious failure to
comply with modified
endowment contract
rules
Rev. Proc. 2008–39, 2008–2 C.B. 143.
7704(g)
Revocation of election
Notice 98–3, 1998–1 C.B. 333.
SUBJECT MATTERSREVENUE 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. 2012–1, this revenue procedure, for which sec-
tions 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, Appen-
dix 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.
January 3, 2012862012–1 I.R.B.

Earnings and profits
determinations
Rev. Proc. 75–17, 1975–1 C.B. 677; Rev. Proc. 2012–1, this revenue procedure, sections
2.05, 3.03, 7, 8, and 10.05; and Rev. Proc. 2012–3, 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, 2009–2 C.B. 107.
Leveraged leasing
Rev. Proc. 2001–28, 2001–1 C.B. 1156, and Rev. Proc. 2001–29, 2001–1 C.B. 1160.
A letter ruling request that involves a question of whether a rate order that is proposed or
issued by a regulatory agency will meet the normalization requirements of § 168(f)(2) (pre-
Tax Reform Act of 1986, § 168(e)(3)) and former §§ 46(f) and 167(l) ordinarily will not be
considered unless the taxpayer states in the letter ruling request whether—
(1) the regulatory authority responsible for establishing or approving the taxpayer’s rates
has reviewed the request and believes that the request is adequate and complete; and
(2) the taxpayer will permit the regulatory authority to participate in any Associate office
conference concerning the request.
Rate orders; regulatory
agency; normalization
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 Coun-
sel (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.
SeeRev. 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.02For requests relating to the following Codesections 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).
61
Utility Cost Recovery
Securitization
Transactions
Rev. Proc. 2005–62, 2005–2 C.B. 507.
137
Exclusion for Employer
Reimbursements
Rev. Proc. 2010–31, 2010–40 I.R.B. 413.
162
Restaurant Small Wares
Costs
Rev. Proc. 2002–12, 2002–1 C.B. 374.
2012–1 I.R.B.87January 3, 2012

165
Losses from corrosive
drywall
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.
167
Recovery period for
depreciation of certain
tangible assets used by
wireless carriers
Rev. Proc. 2011–22, 2011–18 I.R.B. 737.
168
Depreciation of original
and replacement tires
for certain vehicles
Rev. Proc. 2002–27, 2002–1 C.B. 802.
168
Depreciation of fiber
optic node and trunk
line of a cable television
distribution system
Rev. Proc. 2003–63, 2003–2 C.B. 304.
263
Treatment of rotable
spare parts as
depreciable assets
Rev. Proc. 2007–48, 2007–2 C.B. 110.
263
Determination whether
expenditures to
maintain, replace
or improve wireline
network assets must be
capitalized
Rev. Proc. 2011–27, 2011–18 I.R.B. 740.
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.
263
Allocating success-
based fees paid in
business acquisitions or
reorganizations
Rev. Proc. 2011–29, 2011–18 I.R.B. 746.
263
Electric trade and
distribution property
assets
Rev. Proc. 2011–43, 2011–37 I.R.B. 326.
263A
Safe harbor methods for
certain motor vehicle
dealerships
Rev. Proc. 2010–44, 2010–49 I.R.B. 811.
January 3, 2012882012–1 I.R.B.

280B
Certain structural
modifications to a
building not treated as a
demolition
Rev. Proc. 95–27, 1995–1 C.B. 704.
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
Nonaccrual-experience
method - book safe
harbor method
Rev. Proc. 2011–46, 2011–42 I.R.B. 518.
451
Treatment of gift cards
issued to customers in
exchange for returned
merchandise
Rev. Proc. 2011–17, 2011–5 I.R.B. 441.
461
Accrual of payroll
tax liabilities for
compensation
Rev. Proc. 2008–25, 2008–1 C.B. 686.
471
Estimating inventory
shrinkage
Rev. Proc. 98–29, 1998–1 C.B. 857.
471
Valuation of automobile
dealer vehicle parts
inventory
Rev. Proc. 2002–17, 2002–1 C.B. 676.
471
Valuation of
remanufactured cores
Rev. Proc. 2003–20, 2003–1 C.B. 445.
471
Valuation of heavy
equipment dealer parts
inventory
Rev. Proc. 2006–14, 2006–1 C.B. 350.
471
Rolling-average
method of accounting
for inventories
Rev. Proc. 2008–43, 2008–30 I.R.B. 186.
475
Eligible positions
Rev. Proc. 2007–41, 2007–1 C.B. 1492.
584(a)
Qualification of a
proposed common trust
fund plan
Rev. Proc. 92–51, 1992–1 C.B. 988.
642(c)(5)
Qualification of trusts
as pooled income funds
Rev. Proc. 88–53, 1988–2 C.B. 712.
2012–1 I.R.B.89January 3, 2012

664
Charitable remainder
trusts
Rev. Proc. 2005–24, 2005–1 C.B. 909, as modified by Notice 2006–15, 2006–1 C.B. 501.
664(d)(1)
Qualification of trusts
as charitable remainder
annuity trusts
Rev. Proc. 2003–53, 2003–2 C.B. 230; Rev. Proc. 2003–54, 2003–2 C.B. 236; Rev. Proc.
2003–55, 2003–2 C.B. 242; Rev. Proc. 2003–56, 2003–2 C.B. 249; Rev. Proc. 2003–57,
2003–2 C.B. 257; Rev. Proc. 2003–58, 2003–2 C.B. 262; Rev. Proc. 2003–59, 2003–2 C.B.
268; Rev. Proc. 2003–60, 2003–2 C.B. 274.
664(d)(2) and (3)
Qualification of trusts
as charitable remainder
unitrusts
Rev. Proc. 2005–52, 2005–2 C.B. 326; Rev. Proc. 2005–53, 2005–2 C.B. 339; Rev. Proc.
2005–54, 2005–2 C.B. 353; Rev. Proc. 2005–55, 2005–2 C.B. 367; Rev. Proc. 2005–56,
2005–2 C.B. 383; Rev. Proc. 2005–57, 2005–2 C.B. 392; Rev. Proc. 2005–58, 2005–2 C.B.
402; Rev. Proc. 2005–59, 2005–2 C.B. 412.
832
Insurance company
premium acquisition
expenses
Rev. Proc. 2002–46, 2002–2 C.B. 105.
856(c)
Certain loans treated as
real estate assets
Rev. Proc. 2003–65, 2003–2 C.B. 336.
860H
Transfers of ownership
interests in Financial
Asset Securitization
Investment Trusts
Rev. Proc. 2001–12, 2001–1 C.B. 335.
1031(a)
Qualification as a
qualified exchange
accommodation
arrangement
Rev. Proc. 2000–37, 2000–2 C.B. 308, as modified by Rev. Proc. 2004–51, 2004–2 C.B. 294.
1031
Safe harbor with
respect to exchanges of
residential real property
Rev. Proc. 2008–16, 2008–1 C.B. 547.
1031
Safe harbor for
reporting gain or loss
on failed exchanges
Rev. Proc. 2010–14, 2010–12 I.R.B. 456.
1286
Determination
of reasonable
compensation under
mortgage servicing
contracts
Rev. Proc. 91–50, 1991–2 C.B. 778.
1362(f)
Automatic inadvertent
termination relief to
certain corporations
Rev. Proc. 2003–43, 2003–1 C.B. 998, as supplemented by Rev. Proc. 2007–62, 2007–2
C.B. 786.
2056A
Qualified Domestic
Trust
Rev. Proc. 96–54, 1996–2 C.B. 386.
January 3, 2012902012–1 I.R.B.

2702(a)(3)(A) and
25.2702–5(c)
Qualified Personal
Residence Trust
Rev. Proc. 2003–42, 2003–1 C.B. 993.
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
Rev. Proc. 92–101, 1992–2 C.B. 579.
SUBJECT MATTERSREVENUE PROCEDURE
Certain rent-to-own
contracts treated as
leases
Rev. Proc. 95–38, 1995–2 C.B. 397.
Automatic change in accounting
period revenue procedures
.03For requests for an automatic change in accounting period, refer to the following auto-
matic change revenue procedures published and/or in effect as of December 31, 2011:
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 part-
nerships, 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.
2012–1 I.R.B.91January 3, 2012

26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.
Rev. Proc. 2012–2
TABLE OF CONTENTS
SECTION 1. PURPOSE AND AUTHORITY
........................................................................... 94
.01Descriptionofpurpose........................................................................................ 94
.02Updatedannually ............................................................................................ 94
.03Delegationauthority.......................................................................................... 94
SECTION 2. DEFINITIONS......................................................................................... 94
.01Operatingdivision............................................................................................ 94
.02Director..................................................................................................... 94
.03Territorymanager ............................................................................................ 94
.04Appealsofficer............................................................................................... 94
.05Taxpayer.................................................................................................... 95
.06Associateoffice.............................................................................................. 95
.07Fieldoffice.................................................................................................. 95
.08Fieldcounsel................................................................................................. 95
SECTION 3. THE NATURE OF TECHNICAL ADVICE................................................................. 95
.01Whenadvicefurnished........................................................................................ 95
.02TAMmayberequestedevenifpreviousTAMonsamematterwasissued........................................... 95
.03Taxpayerparticipation ........................................................................................ 95
SECTION 4. TYPES OF ISSUES NOT SUBJECT TO THIS PROCEDURE.................................................. 95
.01 Alcohol, tobacco, and firearms taxes............................................................................ 95
.02Taxexemptandgovernmententities............................................................................ 95
.03Farmers’cooperatives......................................................................................... 96
.04Issuesunder§301.9100....................................................................................... 96
.05Frivolousissues.............................................................................................. 96
.06Issuesinadocketedcase ...................................................................................... 96
.07Collectionissues ............................................................................................. 96
SECTION 5. INITIATING A REQUEST FOR TECHNICAL ADVICE...................................................... 96
.01Initiatingarequestfortechnicaladvice ......................................................................... 96
.02Taxpayermayrequesttechnicaladvice ......................................................................... 97
.03AppealoffieldofficedenialofTAMrequest .................................................................... 97
.04ThedirectororLB&Iterritorymanager’sdecisionmaybereviewedbutnotappealed................................. 97
SECTION 6. PRE-SUBMISSION CONFERENCES...................................................................... 97
.01Purpose ..................................................................................................... 97
.02Pre-submissionconferencesaremandatory ...................................................................... 98
.03Actionsbeforeapre-submissionconference ..................................................................... 98
.04Initiatingapre-submissionconference .......................................................................... 98
.05Manneroftransmittingpre-submissionmaterials................................................................. 98
.06Schedulingthepre-submissionconference....................................................................... 99
.07Pre-submissionconferencesmaybeconductedinperson.......................................................... 99
.08Pre-submissionconferencemaynotbetaped..................................................................... 99
.09DiscussionofsubstantiveissuesisnotbindingontheService...................................................... 99
.10Newissuesmayberaisedatpre-submissionconference........................................................... 99
SECTION 7. SUBMITTING THE REQUEST FOR TECHNICAL ADVICE................................................. 99
.01Memorandumofissues,facts,law,andarguments................................................................ 99
.02Transactioninvolvingmultipletaxpayers........................................................................ 99
.03 Foreign laws and documents: submission of relevant foreign laws and documents in the official
languageandinEnglish...................................................................................... 100
.04Statementregardinginterpretationofrelevantincometaxorestatetaxtreaty........................................ 100
January 3, 2012922012–1 I.R.B.

.05Statementrecommendinginformationtobedeletedfrompublicinspection......................................... 100
.06Preparationofthememorandum;resolutionofdisagreements..................................................... 101
.07TransmittalForm4463,RequestforTechnicalAdvice ........................................................... 101
.08Allsupportingandadditionaldocuments....................................................................... 102
.09Numberofcopiesofrequesttobesubmitted.................................................................... 102
.10Powerofattorney............................................................................................ 102
.11Servicenotbarredfromissuing30-dayletterwhileaTAMrequestispending....................................... 102
SECTION 8. INITIAL PROCESSING OF THE REQUEST FOR TECHNICAL ADVICE BY THE ASSOCIATE
OFFICE
.............................................................................................. 102
.01AssignmentandinitialreviewbyAssociateofficeattorney....................................................... 102
.02Otherformsofguidance...................................................................................... 102
.03Initialacknowledgmentandprocessing......................................................................... 103
.04Deficienciesinrequestleadingtoreturn........................................................................ 103
.05Initialdiscussion ............................................................................................ 103
.06Ifadditionalinformationrequested ............................................................................ 103
.07Taxpayerrequestforextensionoftimetosubmitadditionalinformation............................................ 103
.08Wheretosendadditionalinformation.......................................................................... 103
.09Tentativeconclusions........................................................................................ 103
SECTION 9. TAXPAYER CONFERENCES........................................................................... 104
.01Notificationofconference.................................................................................... 104
.02Schedulingconference....................................................................................... 104
.03Taxpayermayrequestextensions.............................................................................. 104
.04Oneconferenceofright ...................................................................................... 104
.05Additionalconferencesmaybeoffered......................................................................... 104
.06Additionalinformationsubmittedaftertheconference ........................................................... 105
.07Normallyconductedinperson................................................................................. 105
.08Servicemakesonlytentativerecommendations.................................................................. 105
.09Conferencemaynotbetaped ................................................................................. 105
SECTION 10. PREPARATION OF THE TECHNICAL ADVICE.......................................................... 105
.01Replyconsistsoftwoparts ................................................................................... 105
.02Statusofarequest........................................................................................... 105
.03Section6110................................................................................................ 105
.04Opportunityforfieldcounselreview........................................................................... 106
.05CopyofpreliminaryTAMtofieldofficeandfieldcounsel........................................................ 106
.06Routingofreply............................................................................................. 106
.07CopyoffinalTAMtofieldcounselandDivisionCounsel........................................................ 106
.08Reconsideration............................................................................................. 106
.09Discussingcontentswiththetaxpayer.......................................................................... 106
.10 TAM takes effect when taxpayer receives a copy................................................................ 106
.11Taxpayermayprotestdeletionsnotmade....................................................................... 107
.12Publicinspectionincivilfraudorcriminalinvestigationcases .................................................... 107
SECTION 1
1. WITHDRAWAL OF REQUESTS FOR TECHNICAL ADVICE
............................
.................. 107
.01 Taxp
ayernotified .........................................................................
.................. 107
.02 Ackn
owledgmentofwithdrawal ............................................................
.................. 107
.03 Asso
ciateofficemaydecidenottoissueaTAM ..............................................
.................. 107
.04 Asso
ciateofficemayprovideviews .........................................................
.................. 107
SECTION 12. USE OF THE TECHNICAL ADVICE.................................................................... 108
.01Servicegenerallyappliesadviceinprocessingthetaxpayer’scase ................................................ 108
SECTION 13. RETROACTIVITY AND RELIANCE.................................................................... 108
.01Usuallyappliesretroactively ................................................................................. 108
.02RevocationormodificationofanearlierletterrulingorTAM .................................................... 108
.03Continuingactionorseriesofactions.......................................................................... 108
.04Othertaxpayers ............................................................................................. 108
2012–1 I.R.B.93January 3, 2012

SECTION 14. HOW MAY RETROACTIVE EFFECT BE LIMITED?..................................................... 108
.01Requestsforreliefunder§7805(b)............................................................................ 108
.02Formofrequestforrelief—ingeneral ........................................................................ 109
.03Formofrequestforrelief—continuingtransactionbeforeexaminationofreturn ................................... 109
.04Taxpayer’srighttoaconference............................................................................... 109
.05Reconsiderationofrequestforreliefunder§7805(b) ............................................................ 109
SECTION 15. SIGNIFICANT CHANGES MADE TO REV. PROC. 2011–2................................................. 109
SECTION 16. EFFECT ON OTHER DOCUMENTS.................................................................... 109
SECTION 17. EFFECTIVE DATE................................................................................... 109
DRAFTING INFORMATION....................................................................................... 109
INDEX........................................................................................................... 111
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 (Interna-
tional), 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 di-
rector 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. 2011–2 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 & International Division
(LB&I); (2) the Small Business/Self-Employed Division (SB/SE); (3) the Wage and Invest-
ment Division (W&I); and (4) the Tax Exempt and Government Entities Division (TE/GE).
Director.02 The term “director” means (1) the Director, Field Operations (LB&I) for the taxpayer’s
industry; (2) a Territory Manager, Field Compliance (SB/SE); (3) the Director, Compliance
(W&I); (4) the Director, International Compliance, Strategy and Policy; (5) the Director, Em-
ployee Plans Examinations; (6) the Director, Exempt Organizations Examinations; (7) the Di-
rector, Federal, State & Local Governments;(8) the Director, Tax Exempt Bonds; (9) the Di-
rector, Indian Tribal Governments; (10) the Appeals Area Director; (11) 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&I); (2) a territory man-
ager, examination (SB/SE); (3) a territory manager, specialty (SB/SE); (4) the Director, Com-
pliance (W&I); (5) the Employee Plans Examinations Area manager; (6) the Exempt Organi-
zations Examinations Area manager; (7) the Employee Plans Determinations manager; (8) the
Exempt Organizations Determinations manager; (9) the group manager, Federal, State & Lo-
cal 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.
Sec. 1
January 3, 2012942012–1 I.R.B.

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 representa-
tives.
Associate office.06 The term “Associate office” means (1) the Office of Associate Chief Counsel (Corpo-
rate); (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 re-
sponds 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 ques-
tion must be on the interpretation and proper application of tax laws, tax treaties, regulations,
revenue rulings, notices, or other precedents toa specific set of facts that concerns the treat-
ment 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 examina-
tion 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.
TAMmayberequestedevenif
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 fur-
nished 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.03 Taxpayers will be afforded an opportunityto 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.
SECTION 4. TYPES OF ISSUES
NOT SUBJECT TO THIS
PROCEDURE
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 Tobacc
o Tax and Trade Bureau of the Treasury Department.
Tax exempt and government
entities
.02 The procedures for requesting technicaladvice on issues under the jurisdiction of
the Commissioner, Tax Exemptand Government Entities Division, are found in Rev. Proc.
2012–5, this Bulletin. The procedures under Rev. Proc. 2012–2, however, must be followed
Sec. 4.02
2012–1 I.R.B.95January 3, 2012

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. 2012–5 of this
Bulletin and Rev. Proc. 2011–9, 2011–2 I.R.B. 283, must be followed.
Issues under § 301.9100.04 A request for an extension of time for making an election or other application for re-
lief 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 un-
der § 301.9100 should be submitted under Rev. Proc. 2012–1 (this Bulletin), and the payment
of the applicable user fee is determined under Appendix A of Rev. Proc. 2012–1.
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 pro-
cedure, 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 “con-
stitutional” claims, such as claims that the requirement to file tax returns and pay taxes consti-
tutes an unreasonable search barred by the Fourth Amendment, violates Fifth and Fourteenth
Amendment protections of due process, violatesThirteenth Amendment protections against
involuntary servitude, or is unenforceable because the Sixteenth Amendment does not autho-
rize 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 violatesthe Paperwork Reduc-
tion Act. Additional examples of frivolous or groundless issues may be found in IRS publi-
cations and other guidance (including but notlimitedtosection6.10ofRev. Proc. 2012–1,
Notice 2010–33, and I.R.M. Section 4.10.12.1.1) and as may be described on the IRS website
atwww.irs.gov/taxpros/article/0,,id=159932,00.html.
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 issueof 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.
Collection issues.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.
SECTION 5. INITIATING A
REQUEST FOR TECHNICAL
ADVICE
Initiating a request for technical
advice
.01 Because technical advice is issued to assist field offices, it is the field office that deter-
mines 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
Sec. 4.02
January 3, 2012962012–1 I.R.B.

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 officehas already provided legal advice other than a
TAMtothefieldofficeonthematter.
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 or, for LB&I, the field operations manager or, for Tax Exempt Bonds, the manager,
field operations. Decisions on any extensionsby the director, LB&I territory manager, or Tax
Exempt Bonds territory 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 for LB&I, the territory manager, or for Tax Exempt Bonds, the territory
manager, for decision. The director, LB&I territory manager, or Tax Exempt Bonds territory
manager will determine whether the issue shouldbe 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, LB&I territory manager, or Tax Exempt Bonds
territory manager 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 best interests).
The director or LB&I territory
manager’s decision may be
reviewed but not appealed
.04 The taxpayer may not appeal the decision ofthe director, LB&I territory manager, or
Tax Exempt Bonds territory manager not to request a TAM. If the taxpayer does not agree with
the proposed denial, all data on the issue forwhich a TAM has been sought, including the tax-
payer’s written request and statements, will be submitted for review to the Director, LB&I; the
Director, Examination, SB/SE; the Director, Specialty Tax, SB/SE; the Director, Compliance,
W&I; the Director, Federal, State & Local Governments; the Director, Tax Exempt Bonds; the
Director, Indian Tribal Governments; or 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 for review may
consult with the Associate office, if appropriate, and will notifythefieldofficewhetherthe
proposed denial of the taxpayer’s request is approved or denied within 45days 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 decisionon the issue (except when the delay would prej-
udice 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 mustbe 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
Sec. 6.01
2012–1 I.R.B.97January 3, 2012

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 of-
fice, 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 ad-
vice is submitted without first holding a pre-submission conference, the Associate office will
return the request for advice.Requests for technical advicecan proceed even if a taxpayer
declines to participate in apre-submission conference.
Actions before a pre-submission
conference
.03 Before requesting a pre-submission conference, the field office and the taxpayer must ex-
change 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 backgroundinformation that the parties believe would
facilitate the Associate office’s understandingof the issues to be discussed during the confer-
ence. 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 scheduledwithout 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. June 2008), should be used.See, Conference and Practice Requirements of the State-
ment of Procedural Rules (26 C.F.R. §§ 601.501–601.509 (2002)). The assigned branch of the
Associate office must receive the pre-submissionmaterials 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
theex parterules set forth in section 1001(a)(4) of the Internal Revenue Service Restructur-
ing and Reform Act of 1998, Pub. L. No. 105–206, and Rev. Proc. 2000–43, 2000–2 C.B.
404. If the request involves an issue under the office of the Director, Abusive Tax Avoidance
Transactions (ATAT) Examination, SB/SE, anissue 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 theAppeals Technical Guidance or Appeals Coor-
dinated Issue (ACI) Program, the Appeals officer must coordinate with the Appeals Technical
Guidance Coordinator or International Specialist Coordinator.
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-sub-
mission 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 trans-
mitted electronically, the request may be sent by fax to TSS4510 at 202–622–4817. 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.
Sec. 6.01
January 3, 2012982012–1 I.R.B.

Copies of the taxpayer’s statement of deletions and power of attorney (Form 2848,Power
of Attorney and Declaration of Representative(Rev. June 2008)), 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 de-
livery 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-submissionconferences 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 verbatimrecording 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 assis-
tance 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 rele-
vance 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, thatstatement 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 writ-
ten statement that incorporates the information provided above and the reasons for requesting
technical advice. When the Service initiates therequest for technical advice, the field office
should notify the taxpayer that the Service is requesting technical advice and provide the tax-
payer 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, butonly if each taxpayer agrees to participate in
the process, including the furnishing of Forms 8821, or other written taxpayer consent.
Sec. 7.02
2012–1 I.R.B.99January 3, 2012

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 theofficial 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 thetitle 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 whe
ther or not the
field office and the taxpayer dispute the interpretation of a foreign law or fo
reign document.
The interpretation of a foreign law or foreign document means making a judgmen
t about the
import or effect of the foreign law or document that goes beyond its plain meani
ng.
(2) If applicable, a request for technical advice must include an accurate and complete cer-
tified English translation of the relevant parts of all contracts, wills, deeds, agreements, instru-
ments, 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 govern-
ment or another widely available, generally accepted publication. In either case, the translation
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 sub-
mitted is a true and accurate translation of theforeign language document or law; and (3) a
statement about the attestant’s qualifications asa translator and that attestant’s qualifications
and knowledge regarding tax matters or any foreign law translated if the law is not a tax law.
Statement regarding
interpretation of relevant income
taxorestatetaxtreaty
.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 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 jurisdic-
tion 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 Ser-
vice 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 tax-
payer must provide a statement indicating thedeletions 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 taxpayerhas placed brackets around the material to be
deleted plus a statement indicating the statutory basis under § 6110(c) for each proposed dele-
tion. The deletion statement must not appear inthe 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
Sec. 7.03
January 3, 20121002012–1 I.R.B.

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 infor-
mation 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 state-
ment 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 counseland sends it to the taxpayer by mail or fax trans-
mission. The taxpayer then will have 5 calendar days from the date of mailing or fax transmis-
sion 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 deter-
mination 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 resolveremaining 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 offield 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 aretrue, correct, and complete.” This declara-
tion must be signed in accordance with the requirements in section 7.01(15)(b) of Rev. Proc.
2012–1. The field office must submit this declaration with the initial request for technical ad-
vice. 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 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.
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.
A taxpayer’s failure to participate in the development of the memorandum will be consid-
ered a failure to participate in a material stage of the TAM process and result in a waiver of the
right to the conference discussed in Section 9.
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.
Sec. 7.07
2012–1 I.R.B.101January 3, 2012

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 202–622–4817 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 5329
1111 Constitution Avenue, NW
Washington, DC 20224
Whenever possible, all documents should contain the case number and name of the Asso-
ciate 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 copyof 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, an electronic copy (no paper copy to follow)
is sent to the TAM Coordinator in the Office of Tax Policy & Valuation with a copy to the
Director TPP (Exam).
Power of attorney.10 Any authorized representative, as described in section 7.01(13) of Rev. Proc. 2012–1,
whether or not enrolled to practice, must comply with Treasury Department Circular No. 230
(31 C.F.R. part 10 (2011)) and with the Conference and Practice Requirements of the Statement
of Procedural Rules (26 C.F.R. §§ 601.501–601.509 (2002)). Form 2848,Power of Attorney
and Declaration of Representative(Rev. June 2008), should be used. An original, a copy, or
a fax transmission of the power of attorney isacceptable, 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
Associateofficeattorney
.01 After a request for technical advice has beenreceived by the appropriate Associate of-
fice, it will be assigned to an Associate office attorney within a branch. The Associate office
attorney determines 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 ad-
dressedinaTAM.
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 ad-
vice. 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 understand-
ing 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
Sec. 7.08
January 3, 20121022012–1 I.R.B.

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 c
ontact the
field office and field counsel to discuss any deficiencies in the request and will
work with the
field office and field counsel to correctthem. If the deficiencies cannot be corr
ected over the
next 7 calendar days, the request will be closed and returned to the field office. T
he 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 re-
quired 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 proceduraland 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 infor-
mation 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 informa-
tion 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 assigned Associate office attorney. Generally, only the original ofthe additional informa-
tion 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 at-
torney 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 infor-
mation 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
Sec. 8.09
2012–1 I.R.B.103January 3, 2012

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 fi-
nal. 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 ap-
propriate opportunity to prepare and present their position at aconference 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 aconference, 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 scheduledconference 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 dis-
cretion 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.
Oneconferenceofright.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 confer-
ence 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 an-
other 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
Sec. 8.09
January 3, 20121042012–1 I.R.B.

entitled does not prevent the Associate office from inviting a taxpayer to participate in addi-
tional conferences if that office determines thatadditional 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 ta
xpayer should make a
reasonable effort to supply all information, documents, and argument
sinwritingwellbefore
the conference. Sometimes, however, it becomes apparent that new info
rmation may be helpful
in resolving issues discussed at the conference. If the Associate offi
ce and the taxpayer agree
that such information would be helpful, all such materials must be subm
itted 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 branc
h chief of the Associate
office attorney. Extensions will not be routinely granted. Taxpaye
rs have no right to submit
additional materials after the conference, and are discouraged fr
om providing additional copies
or versions of materials already submitted. If the additional info
rmation 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,
theAssociateofficeattorneywill 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 verbatimrecording of a conference may be made by any
party.
SECTION 10. PREPARATIO
N
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 de-
fined 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 authorizedrepresentative 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
Sec. 10.03
2012–1 I.R.B.105January 3, 2012

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 pro-
posed 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 con-
ference 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 informthe field counsel regarding the Associate of-
fice’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 reasonableopportunity 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 wil
l
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&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 a
copy to the TAM Coordinator in the Office of Tax Policy & Valuation through the Appeals
Director, Tax Policy & Valuation.
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. TheAssociate office will give priority considera-
tion to the request and should acton 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 is-
sues or arguments different from those assertedin 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 thespecific 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, the Director, the field or
Director, Tax Exempt Bonds 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 dis-
close 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 tech-
nical advice pertains to more than one taxpayer, the field or Tax Exempt Bond Director 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
Sec. 10.03
January 3, 20121062012–1 I.R.B.

TAM involving civil fraud or a criminal investigation, or involving a jeopardy or termination
assessment.
Taxpayer may protest deletions
not made
.11 Generally, the Associate office considersonly 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 tax-
payer 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
TAMproposedtobeopentopublicinspectionwithbracketsaroundthedeletionsproposed
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. Within20 calendar days after
it receives the taxpayer’s response to the noticeunder § 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
.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 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.
SECTION 11. WITHDRAWAL
OF REQUESTS FOR
TECHNICAL ADVICE
Taxpayer notified.01 Once a request for a TAM has been sent tothe 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 limitations 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
in the Office of Tax Policy & Valuation.
Associate office may decide not to
issue a TAM
.03 If the Associate office determines that aTAM will not be provided, it may return the re-
quest 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.
Associateofficemayprovideviews.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 deci-
sion to address the issues through these other forms of guidance will be based on the general
standards for issuing those types of guidance.
Sec. 11.04
2012–1 I.R.B.107January 3, 2012

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 ofany 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 revoca-
tion or modification of a PLR. See Rev. Proc.2012–1 § 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 tax-
payer 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 ap-
plied 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 thecontrolling facts on which the letter ruling or
earlier TAM was based. If a letter ruling or a TAM is modified or revoked with retroactive ef-
fect, the notice to the taxpayer, except in fraudcases, should set forth the grounds on which the
modification or revocation is being made and thereason 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.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.
SECTION 14. HOW MAY
RETROACTIVE EFFECT BE
LIMITED?
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)
Sec. 12
January 3, 20121082012–1 I.R.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 there is justification for having delayed the request.
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 ofarequestforaTAM.This includes recommen-
dations 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 ar-
guments 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.
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 pub-
lished 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. 2012–1 (this Bulletin).
Taxpayer’s right to a conference.04 When a request for a TAM concerns only the application of § 7805(b), the taxp
ayer
has the right to a conference with the Associate office in accordance with the p
rovisions 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 conferen
ce of right on
the substantive issues, the § 7805(b) issues will be discussed at the taxpay
er’s one conference
of right. If the request for the application of § 7805(b) is made as part of a p
ending TAM
request after a conference has been held on the substantive issues and the S
ervice determines
that there is justification for having delayed the request, then the taxpa
yer will have the right
to one conference of right concerning the application of § 7805(b), with th
e 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 thedirector determines there has been a misstate-
ment or omission of controlling facts by the taxpayer in its request for § 7805(b) relief.
SECTION 15. SIGNIFICANT
CHANGES MADE TO REV.
PROC. 2011–2
There were no significant changes made to Rev. Proc. 2011–2.
SECTION 16. EFFECT ON
OTHER DOCUMENTS
Rev. Proc. 2011–2, 2011–1 I.R.B. 92, is superseded.
SECTION 17. EFFECTIVE
DATE
This revenue procedure is effective January 3, 2012.
DRAFTING INFORMATIONThe principal author of this revenue procedure is Elizabeth S. McBrearty 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) 622–7700 (not a toll-free call);
(2) the Associate Chief Counsel (Financial Institutions and Products), contact
Arturo Estrada at (202) 622–3900 (not a toll-free call);
(3) the Associate Chief Counsel (Income Tax and Accounting), contact Deborah Clark at
(202) 622–4800 (not a toll-free call);
(4) the Associate Chief Counsel (Passthroughs and Special Industries), contact
Mayer Samuels at (202) 622–3090 (not a toll-free call);
Sec. 17
2012–1 I.R.B.109January 3, 2012

(5) the Associate Chief Counsel (Procedure and Administration), contact George Bowden
or Henry Schneiderman at (202) 622–3400 (not a toll-free call);
(6) the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities),
contact Paul Carlino at (202) 622–6000 (not a toll-free call);
(7) the Associate Chief Counsel (International), contact Jeffrey L. Vinnik at (202) 622–3810
(not a toll-free call);
(8) the Commissioner (Large Business & International Division), contact Shirley S. Lee at
(202) 283–8417 (not a toll-free call);
(9) the Commissioner (Small Business/Self-Employed Division), contact Glenn Deloriea at
(202) 283–0792 (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 Julie M. Ferenci at (818) 637–3916 (not a toll-free call).
January 3, 20121102012–1 I.R.B.

INDEX
References are to sections in Rev. Proc. 2012–2
Additional Information
—forpre-submissionconference....................................................................................6.05
—initialprocessingofTAMrequest.................................................................................8.06
—afterconferenceofright.........................................................................................9.06
—proposeddeletionsunder§6110............................................................................7.05,10.03
— Service will request additional information from the taxpayer by express mail
servicesorfax..................................................................................................8.06
Appeal of decision to seek or not seek TAM.........................................................................5.03
—directororLMSBterritorymanager’sdecisioncannotbeappealed....................................................5.04
Civil fraud or criminal investigation cases.........................................................................10.13
Conferences
—offered .................................................................................................. 6,9,14.04
—afterconferenceofright.........................................................................................9.05
—scheduling................................................................................................6.06,9.02
requesttolimitretroactivity.................................................................................14.04
telephoneconferences..................................................................................6.07,9.07
Definitions
—appealsofficer .................................................................................................2.04
—director .......................................................................................................2.02
—fieldoffice ....................................................................................................2.07
—fieldcounsel ...................................................................................................2.08
—frivolousissue .................................................................................................4.05
—taxpayer.......................................................................................................2.05
—technicaladvice ................................................................................................1.01
—territorymanager...............................................................................................2.03
Discussions with Taxpayers
—contentsofTAM...............................................................................................10.09
—substantiveissuesatpre-submissionconference....................................................................6.09
—tentativeconclusioninTAM .....................................................................................8.09
Employee Plans and Exempt Organizations
—applicationof§6104 ..........................................................................................10.12
— jurisdiction of Commissioner, Tax Exempt and Government Entities
Division.......................................................................................................4.02
Extension of Time
—toappealdecisionnottorequestaTAM...........................................................................5.03
—todisagreewithstatementoffactsintechnicaladvicerequest........................................................7.06
—toscheduleconference ..........................................................................................9.03
— to submit additional information requested by Associate office in initial
processingofTAM..............................................................................................8.07
—tosubmitadditionalinformationafterconference ..................................................................9.06
Foreign laws and documents
—certifiedEnglishtranslations.................................................................................. 7.03(2)
—effectifinterpretationisamaterialfact ........................................................................ 7.03(1)
—whenrequired .................................................................................................7.03
Issues Eligible for TAMs.............................................................................................3
Issues Not Eligible for TAMs.........................................................................................4
2012–1 I.R.B.111January 3, 2012

INDEX
References are to sections in Rev. Proc. 2012–2
Penalties of Perjury Statement
—form ..........................................................................................................7.06
—requiredwhennofactualagreement ..............................................................................7.06
—requiredwithadditionalinformation ..............................................................................8.06
—signaturerequirementfordeletionstatement .......................................................................7.05
Power of Attorney................................................................................................7.10
Pre-submission Conferences.........................................................................................6
Public Inspection Under § 6110
—deletionstatementrequired ......................................................................................7.05
exceptionwhen§6104applies ..............................................................................10.12
—noticeofintentiontodisclose ...................................................................................10.03
protestingdeletionsnotmade ...............................................................................10.11
Responsibility for Requesting Advice..............................................................................5.01
Retroactive Effect
—requesttolimitretroactivity ....................................................................................14.01
formatofrequest ....................................................................................14.02,14.03
—righttoconference ............................................................................................14.04
Section 301.9100 Relief...........................................................................................4.04
Status of TAM..................................................................................................10.02
Taxpayer Participation...........................................................................................3.03
—consequencesoffailuretoparticipateinmaterialstage .........................................................7.06,8.06
What to Include in the Request for Advice
—Memorandumofissues,facts,law,andarguments ..................................................................7.01
—Statementproposinginformationtobedeletedfrompublicinspection ................................................7.05
—TransmittalForm4463..........................................................................................7.07
—Numberofcopies ..............................................................................................7.09
—Powerofattorney ..............................................................................................7.10
Where to Send
—informationrequiredpriortopre-submissionconference ............................................................6.05
—requestforaTAM ..............................................................................................5.02
Withdrawal of TAM Requests......................................................................................11
January 3, 20121122012–1 I.R.B.

26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2012–3
TABLE OF CONTENTS
SECTION 1. PURPOSE AND NATURE OF CHANGES
................................................................. 113
SECTION 2. BACKGROUND AND SCOPE........................................................................... 113
SECTION 3. AREAS IN WHICH RULINGS WILL NOT BE ISSUED..................................................... 114
SECTION 4. AREAS IN WHICH RULINGS WILL NOT ORDINARILY BE ISSUED........................................ 118
SECTION 5. AREAS UNDER STUDY IN WHICH RULINGS WILL NOT BE ISSUED....................................... 122
SECTION 6. AREAS COVERED BY AUTOMATIC APPROVAL PROCEDURES........................................... 123
SECTION 7. EFFECT ON OTHER REVENUE PROCEDURES.......................................................... 124
SECTION 8. EFFECTIVE DATE..................................................................................... 124
SECTION 9. PAPERWORK REDUCTION ACT........................................................................ 124
DRAFTING INFORMATION........................................................................................ 124
SECTION 1. PURPOSE AND
NATURE OF CHANGES
.01 The purpose of this revenue pro-
cedure is to update Rev. Proc. 2011–3,
2011–1 I.R.B. 111, by providing a revised
list of those areas of the Internal Rev-
enue Code under the jurisdiction of the
Associate Chief Counsel (Corporate), the
Associate Chief Counsel (Financial Insti-
tutions and Products), the Associate Chief
Counsel (Income Tax and Accounting), the
Associate Chief Counsel (Passthroughs
and Special Industries), the Associate
Chief Counsel (Procedure and Administra-
tion), and the Division Counsel/Associate
Chief Counsel (Tax Exempt and Govern-
ment Entities) relating to issues on which
the Internal Revenue Service will not is-
sue letter rulings or determination letters.
For a list of areas under the jurisdiction
of the Associate Chief Counsel (Inter-
national) relating to international issues
on which the Service will not issue letter
rulings or determination letters, see Rev.
Proc. 2012–7, this Bulletin. For a list of
areas under the jurisdiction of the Com-
missioner, Tax Exempt and Government
Entities Division relating to issues, plans
or plan amendments on which the Service
will not issue letter rulings or determi-
nation letters, see, respectively, section 8
of Rev. Proc. 2012–4, this Bulletin, and
section 3.02 of Rev. Proc. 2012–6, this
Bulletin.
.02 Changes.
(1) Section 3.01(1), regarding § 45, has
been added.
(2) Section 3.01(2), regarding § 61, has
been modified.
(3) Section 3.01(56), regarding
§ 704(b), has been modified.
(4) Section 3.02(1), regarding the eco-
nomic substance doctrine and § 7701(o),
has been added.
(5) Section 4.01(33), regarding § 451
and Rev. Proc. 2011–56, 2011–49 I.R.B.
834, has been modified.
(6) Section 4.01(41), regarding §§ 671
to 679 and Rev. Proc. 2011–56, 2011–49
I.R.B. 834, has been modified.
(7) Old section 4.01(45), regarding
§ 1362, has been deleted.
(8) Section 5 has been modified to cre-
ate new section 5.01, Specific Questions
and Problems, and to redesignate old sec-
tions 5.01 through 5.08 as sections 5.01(1)
through 5.01(8), and to redesignate old
sections 5.09 through 5.19 as sections
5.01(10) through 5.01(20).
(9) Section 5.01(8), regarding § 451 and
Rev. Proc. 2011–56, 2011–49 I.R.B. 834,
has been modified.
(10) Section 5.01(9), regarding,
§ 613A, has been added.
(11) Section 5.01(11), regarding §§ 671
to 679 and Rev. Proc. 2011–56, 2011–49
I.R.B. 834, has been modified.
(12) Section 5.02, General Areas, re-
garding rescissions of completed transac-
tions, has been added.
(13) Section 9, regarding the Paperwork
Reduction Act (44 U.S.C. § 3507), has
been modified.
SECTION2. BACKGROUNDAND
SCOPE OF APPLICATION
.01 Background.
Whenever appropriate in the interest of
sound tax administration, it is the policy of
the Service to answer inquiries of individu-
als 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 required by the
revenue laws.
There are, however, certain areas in
which, because of the inherently factual
nature of the problems involved, or for
other reasons, the Service will not issue
rulings or determination letters. These ar-
eas are set forth in four sections of this rev-
enue procedure. Section 3 reflects those
areas in which rulings or determination let-
ters will not be issued. Section 4 sets
forth those areas in which rulings or deter-
mination letters will not ordinarily be is-
sued. “Not ordinarily” means that unique
Sec. 2
2012–1 I.R.B.113January 3, 2012

and compelling reasons must be demon-
strated to justify the issuance of a ruling or
determination letter. Section 5 sets forth
those areas in which the Service is tem-
porarily not issuing rulings or determina-
tion 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. 2012–1, this Bulletin,
particularly section 6 captioned “Under
What Circumstances Does The Service
Not Issue Letter Rulings Or Determination
Letters?” for general instructions and other
situations in which the Service will not or
will not ordinarily issue letter rulings or
determination letters.
With respect to the items listed, rev-
enue rulings or revenue procedures may be
published in the Internal Revenue Bulletin
from time to time to provide general guide-
lines 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
published 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-inclu-
sive. 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.
.02 Scope of Application.
This revenue procedure does not pre-
clude the submission of requests for tech-
nical advice to the National Office from
other offices of the Service.
.03 No-Rule Issues Part of Larger
Transactions.
If it is impossible for the Service to de-
termine the tax consequences of a larger
transaction without knowing the resolution
of an issue on which the Service will not
issue rulings or determination letters un-
der 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 be-
lief the tax consequences of the no-rule is-
sue. The Service’s ruling or determination
letter will state that the Service did not con-
sider, and no opinion is expressed upon,
that issue. In appropriate cases the Ser-
vice may decline to issue rulings or deter-
mination letters on such larger transactions
due to the relevance of the no-rule issue,
despite the taxpayer’s representation. See
also section 4.02(2) of this revenue proce-
dure.
SECTION 3. AREAS IN WHICH
RULINGS OR DETERMINATION
LETTERS WILL NOT BE ISSUED
.01 Specific Questions and Problems.
(1) Section 45.—Electricity Produced
from Certain Renewable Resources,
Etc.—Who is the producer of refined coal
for purposes of claiming the renewable
electricity production credit.
(2) Section 61.—Gross Income De-
fined.—Whether amounts voluntarily de-
ferred by a taxpayer under a deferred-com-
pensationplanmaintainedbyanorgani-
zation described in § 501 (other than an
eligible plan maintained by an eligible
employer pursuant to the provisions of
§ 457(b)) are currently includible in the
taxpayer’s gross income.
(3) 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.)
(4) 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 intan-
gible property right.
(5) Section 79.—Group-Term Life
Insurance Purchased for Employ-
ees.—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 for-
mula that would meet the requirements of
§ 1.79–1(c)(2)(ii) of the regulations if the
group consisted of fewer than 10 employ-
ees.
(6) 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.
(7) Section 83.—Property Transferred
in Connection with Performance of Ser-
vices.—Which corporation is entitled to
the deduction under § 83(h) in cases where
a corporation undergoes a corporate divi-
sion, if the facts are not similar to those de-
scribed in Rev. Rul. 2002–1, 2002–1 C.B.
268.
(8) Section 101.—Certain Death Ben-
efits.—Whether there has been a transfer
for value for purposes of § 101(a) in situa-
tions involving a grantor and a trust when
(i) substantially all of the trust corpus con-
sists or will consist of insurance policies
on the life of the grantor or the grantor’s
spouse, (ii) the trustee or any other per-
son has a power to apply the trust’s in-
come or corpus to the payment of premi-
ums 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.
(9) Sections 101, 761, and 7701.—Cer-
tain Death Benefits; Terms Defined; Defi-
nitions.—Whether, in connection with the
transfer of a life insurance policy to an un-
incorporated organization, (i) the organi-
zation will be treated as a partnership un-
der §§ 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 assets consist or will consist
of life insurance policies on the lives of the
members.
(10) Section 102.—Gifts and Inheri-
tances.—Whether a transfer is a gift within
the meaning of § 102(a).
(11) 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
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January 3, 20121142012–1 I.R.B.

satisfies the requirements of § 105(h) for
a plan year.
(12) Section 107.—Rental Value of Par-
sonages.—Whether amounts distributed to
a retired minister from a pension or an-
nuity plan should be excludible from the
minister’s gross income as a parsonage al-
lowance under § 107.
(13) 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).)
(14) 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 edu-
cation for themselves or a designated ben-
eficiary, including: (i) whether the plan or
arrangement, itself, is an entity separate
from a state and, if so, how the plan or ar-
rangement is treated for Federal tax pur-
poses; and (ii) whether any contract under
the plan or arrangement is a debt instru-
ment and, if so, how interest or original
issue discount attributable to the contract
is treated for Federal tax purposes. (Also
§§ 61, 163, 1275, 2501, and 7701.)
(15) 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.
(16) 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.
(17) Section 117.—Qualified Schol-
arships.—Whether an employer-related
scholarship or fellowship grant is excludi-
ble from the employee’s gross income, if
there is no intermediary private founda-
tion distributing the grants, as there was in
Rev. Proc. 76–47, 1976–2 C.B. 670.
(18) 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 share-
holder of the employer.
(19) Section 121.—Exclusion of
Gain from Sale of Principal Resi-
dence.—Whether property qualifies as the
taxpayer’s principal residence.
(20)Section125.—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 con-
sidered “wages” for purposes of §§ 3401,
3121, and 3306 when the benefits are
offered through a cafeteria plan.
(21) Section 162.—Trade or Business
Expenses.—Whether compensation is rea-
sonable in amount.
(22) Section 163.—Interest.—The in-
come tax consequences of transactions
involving “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 valueof the real property
upon termination of the mortgage. This
applies to all SAM arrangements where
the loan proceeds are used for commercial
or business activities, or where used 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.)
(23) Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a char-
itable contribution deduction under § 170
is allowed for a transfer of an interest in
a limited partnership or a limited liability
company taxed as a partnership to an or-
ganization described in § 170(c).
(24) Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a
taxpayer who advances funds to a char-
itable organization and receives therefor
a promissory note may deduct as contri-
butions, in one taxable year or in each of
several years, amounts forgiven by the
taxpayer in each of several years by en-
dorsement on the note.
(25) Section 181.—Treatment of
Certain Qualified Film and Television
Productions.—The determination under
§ 1.181–1(a)(1) and (2) as to who is the
owner of a qualified film or television
production.
(26) Section 199.—Income Attrib-
utable to Domestic Production Ac-
tivities.—The determination under
§ 1.199–3(f)(1) as to who is the taxpayer
that has the benefits and burdens of own-
ership under Federal income tax principles
of any qualifying 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(l)) during the period
in which a qualifying activity under § 199
occurs.
(27) 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
dependent, or is related directly to such
medical care.
(28) Section 264.—Certain Amounts
Paid in Connection with Insurance Con-
tracts.—Whether § 264(d)(1) applies.
(29) Section 264(c)(1).—Contracts
Treated as Single Premium Con-
tracts.—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 fu-
ture premiums on such a contract.
(30) Section 269.—Acquisitions Made
to Evade or Avoid Income Tax.—Whether
an acquisition is within the meaning of
§269.
(31) Section 274.—Disallowance
of Certain Entertainment, Etc., Ex-
penses.—Whether a taxpayer who is trav-
elingawayfromhomeonbusinessmay,
in lieu of substantiating the actual cost of
meals, deduct a fixed per-day amount for
meal expenses that differs from the amount
authorized by the revenue procedure pro-
viding optional rules for substantiating the
amount of travel expenses for the period
in which the expense was paid or incurred.
(32) 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 ofspecific defaults by
the corporation.
(33) Section 302.—Distributions in Re-
demption of Stock.—Whether § 302(b) ap-
plies when the consideration given in re-
Sec. 3
2012–1 I.R.B.115January 3, 2012

demptionbyacorporationinexchangefor
a shareholder’s stock consists entirely or
partly of the corporation’s promise to pay
an amount based on, or contingent on, fu-
ture earnings of the corporation, when the
promise to pay is contingent on working
capital being maintained at a certain level,
or any other similar contingency.
(34) Section 302.—Distributions in Re-
demption of Stock.—Whether § 302(b) ap-
plies 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 earn-
ings or are subordinate to the claims of the
corporation’s generalcreditors. Payments
for the use of property will not be consid-
ered to be dependent upon future earnings
merely because they are based on a fixed
percentage of receipts or sales.
(35) Section 302.—Distributions in Re-
demption of Stock.—Whether the acqui-
sition or disposition of stock described in
§ 302(c)(2)(B) has, or does not have, as
one of its principal purposes the avoidance
of Federal income taxes within the mean-
ing 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.
(36) Section 302(b)(4) and (e).—Re-
demption from Noncorporate Shareholder
in Partial Liquidation; Partial Liquidation
Defined.—The amount of working capi-
tal attributable to a business or portion
of a business terminated that may be dis-
tributed in partial liquidation.
(37) Section 312.—Effect on Earnings
and Profits.—The determination of the
amount of earnings and profits of a corpo-
ration.
(38) Sections 331, 453, and
1239.—Gain or Loss to Shareholders
in Corporate Liquidations; Installment
Method; Gain from Sale of Depreciable
Property Between Certain Related Tax-
payers.—The tax effects of a transaction
in which there is a transfer of property by a
corporation to a partnership or other non-
corporate entity (or the transfer of stock to
such entity followed by a liquidation of the
corporation) when more than a nominal
amount of the stock of such corporation
and the capital or beneficial interests in
the purchasing entity (that is, more than
20 percent in value) is owned by the same
persons, and the consideration to be re-
ceived by the selling corporation or the
selling shareholders includes an install-
ment obligation of the purchasing entity.
(39) Sections 332, 351, 368(a)(1)(A),
(B), (C), (E), and (F), and 1036.—Com-
plete Liquidations of Subsidiaries; Trans-
fer to Corporation Controlled by Trans-
feror; Reorganization; Stock for Stock of
Same Corporation.—Whether a transac-
tion qualifies under §§ 332, 351, or 1036
for nonrecognition treatment, or whether
it constitutes a corporate reorganization
within the meaning of § 368(a)(1)(A) (in-
cluding a transaction that qualifies under
§ 368(a)(1)(A) by reason of § 368(a)(2)(D)
or § 368(a)(2)(E)), § 368(a)(1)(B),
§ 368(a)(1)(C), § 368(a)(1)(E), or
§ 368(a)(1)(F), and whether various con-
sequences (such as nonrecognition and
basis) result from the application of that
section, unless the Service determines that
thereisasignificantissuethatmustbe
resolved in order to decide those matters.
If the Service determines that there is a
significant issue, and to the extent the
transaction is not described in another
no-rule section, the Service will rule on
the entire transaction, and not just the sig-
nificant issue. However, the Service may
rule on a significant issue in a transac-
tion that occurs in the context of a § 355
distribution without ruling on the entire
transaction. See section 6.03 of Rev. Proc.
2012–1, this Bulletin.
Notwithstanding the preceding para-
graph, the Service will rule on the appli-
cation of § 351 to a controlled corporation
when the transaction is undertaken prior
to the distribution of the stock of the
controlled corporation in a transaction
qualifying under § 355.
SIGNIFICANT ISSUE: A significant
issue is an issue of law that meets the three
following tests: (1) the issue is not clearly
and adequately addressed by a statute, reg-
ulation, decision of a court, tax treaty, rev-
enue ruling, revenue procedure, notice, or
other authority published in the Internal
Revenue Bulletin; (2) the resolution of the
issue is not essentially free from doubt; and
(3) the issue is legally significant and ger-
mane to determining the major tax conse-
quences of the transaction. An issue of
law will be considered not clearly and ade-
quately addressed by the authorities above,
and its resolution will not be essentially
free from doubt when, because of concern
over a legal issue (as opposed to a factual
issue), taxpayer’s counsel is unable to ren-
der an unqualified opinion on what the tax
consequences of the transaction will be.
OBTAINING A RULING: To obtain a
ruling on a transaction involving a signif-
icant issue, the taxpayer must in its ruling
request explain the significance of the is-
sue, set forth the authorities most closely
relatedtotheissue,andexplainwhythe
issue is not resolved by these authorities.
(40) Section 351.—See section
3.01(39), above.
(41) 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).
(42) Section 358.—Basis to Distribu-
tees.—The acceptability of an estimation
procedure or the acceptability of a specific
sampling procedure to determine the ba-
sis of stock acquired by an acquiring cor-
poration in a reorganization described in
§ 368(a)(1)(B).
(43) Section 368.—See section
3.01(39), above.
(44) Section 409A.—Inclusion in
Gross Income of Deferred Compensation
Under Nonqualified Deferred Compen-
sation Plans.—The income tax conse-
quences of establishing, operating, or
participating 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);
Sec. 3
January 3, 20121162012–1 I.R.B.

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).
(45) 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
corporate transaction constitutes a mod-
ification 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 con-
tinuetoruleontheissueofwhetherthe
new ISO or the assumption of the old ISO
gives the employee additional benefits not
present under the old option within the
meaning of § 424(a)(2).
(46) 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-em-
ployee eligible to participate in the ar-
rangement.
(47) Section 451.—General Rule for
Taxable Year of Inclusion.—The tax con-
sequences of nonqualified unfunded de-
ferred-compensation arrangements where
the arrangements fail to meet the require-
ments of Rev. Proc. 92–65, 1992–2 C.B.
428; and Rev. Proc. 71–19, 1971–1 C.B.
698.
(48) Section 451.—See section 3.01(4),
above.
(49) Sections 451 and 457.—Gen-
eral Rule for Taxable Year of Inclusion;
Nonqualified Deferred Compensation
Plans of State and Local Governments
and Tax-Exempt Organizations.—The tax
consequences to unidentified independent
contractors in nonqualified unfunded de-
ferred compensation plans. This applies
to plans established under § 451 by em-
ployers in the private sector and to plans
of state and local governments and tax-ex-
empt organizations under § 457. However,
a ruling with respect to a specific indepen-
dent contractor’s participation in such a
plan may be issued.
(50) Section 453.—See section
3.01(38), above.
(51) Section 457.—See sections 3.01(2)
and 3.01(49), above.
(52) 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.
(53) 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.
(54) 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.
(55) 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.
(56) 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 ac-
cordance with the partner’s interest in the
partnership.
(57) Section 704(e).—Family Partner-
ships.—Matters relating to the validity of
a family partnership when capital is not a
material income producing factor.
(58) Section 761.—See section 3.01(9),
above.
(59) 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 corpo-
rations are integrated.
(60) Section 1001.—See section
3.01(4), above.
(61) 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. 2012–1,
this Bulletin.
(62) Section 1036.—See section
3.01(39), above.
(63) Section 1221.—Capital Asset De-
fined.—Whether specialty stock allocated
to an investment account by a registered
specialist on a national securities exchange
is a capital asset.
(64) Section 1239.—See section
3.01(38), above.
(65) Section 1551.—Disallowance of
the Benefits of the Graduated Corpo-
rate Rates and Accumulated Earnings
Credit.—Whether a transfer is within
§ 1551.
(66) Section 2031.—Definition of
Gross Estate.—Actuarial factors for valu-
ing interests in the prospective gross estate
of a living person.
(67) Section 2055.—Transfers for
Public, Charitable, and Religious
Uses.—Whether a charitable contribution
deduction 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 described
in § 2055(a).
(68) Section 2512.—Valuation of
Gifts.—Actuarial factors for valuing
prospective or hypothetical gifts of a
donor.
(69) 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 limited
partnership or a limited liability company
taxed as a partnership to an organization
described in § 2522(a).
(70) Section 2601.—Tax Im-
posed.—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
Sec. 3
2012–1 I.R.B.117January 3, 2012

when there is a modification of a trust,
change in the administration of a trust, or
a distribution from a trust in a factual sce-
nario that is similar to a factual scenario
set forth in one or more of the examples
contained in § 26.2601–1(b)(4)(i)(E).
(71) Sections 3121, 3306, and
3401.—Definitions.—For purposes of de-
termining 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.
(72) Sections 3121, 3306, and
3401.—Definitions.—Who is the em-
ployer of an “employee-owner” as defined
in § 269A(b)(2).
(73) Sections 3121, 3306, and
3401.—Definitions.—For purposes of
determining employment classification
pursuant to the filing of Form SS–8,De-
termination of Worker Status for Purposes
of Federal Employment Taxes and Income
Tax Withholding, whether a worker is a
bona fide partner and, therefore, not an
employee of the business.
(74) Section 4980B.—Failure to Satisfy
Continuation Coverage Requirements of
Group Health Plans.—Whether an action
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.)
(75) Section 6166.—Extension of Time
for Payment of Estate Tax Where Estate
Consists Largely of Interest in Closely
Held Business.—Requests involving sec-
tion 6166 where there is no decedent.
(76) Section 6901.—Transferred As-
sets.—Whether a taxpayer is liable for tax
as a transferee.
(77) 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.
(78) Section 7701.—See section
3.01(9), above.
(79) Section 7704.—Certain Publicly
Traded Partnerships Treated as Corpora-
tions.—Whether interests in a partnership
that are not traded on an established se-
curities market (within the meaning of
§ 7704(b) and § 1.7704–1(b)) are read-
ily tradable on a secondary market or
the substantial equivalent thereof under
§ 1.7704–1(c)(1) of the Procedure and
Administration Regulations.
.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
abona fidebusiness 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 (Pro-
cedure and Administration) reasonable
cause, due diligence, good faith, clear
and convincing evidence, or other similar
terms that require a factual determination
exist.
(6) Whether a proposed transaction
would subject the taxpayer to a criminal
penalty.
(7) A request that does not comply with
the provisions of Rev. Proc. 2012–1, this
Bulletin.
(8) Whether, under the common law
rules applicable in determining the em-
ployer-employee relationship, a profes-
sional staffing corporation (loan-out cor-
poration) or the subscriber is the employer
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).
(9) Questions that the Service deter-
mines, in its discretion, should not be an-
swered in the general interests of tax ad-
ministration.
(10) Any frivolous issue, as that term
isdefinedinsection6.10ofRev. Proc.
2012–1, 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 where the formal ownership
of property is in a party other than the
taxpayer, 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, where the purchaser has
the contractual right to cause the securi-
ties, or participation interests therein, to
be purchased 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
Taxable Year of Inclusion.—When com-
pensation is realized by a person who,
in connection with the performance of
services, 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
period 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 “arbi-
trage bond” within the meaning of former
§ 103(c)(2) solely by reason of the invest-
ment of the bond proceeds in acquired non-
purpose obligations at a materially higher
yield more than 3 years after issuance of
the bonds or 5 years after issuance of the
Sec. 3
January 3, 20121182012–1 I.R.B.

bonds in the case of construction issues de-
scribed 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 ordinarily issue rul-
ings or determination letters concerning
questions arising under paragraphs (3),
(4), and (5) of § 141(b).
(8) Sections 142 and 144(a).—Ex-
empt 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
before 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)Section148.—Arbi-
trage.—Whether amounts received as
proceeds from the saleof 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 167.—Depreciation.
(i) Useful lives of assets.
(ii) Depreciation rates.
(iii) Salvage value of assets.
(13) Sections 167 and 168.—Depre-
ciation; AcceleratedCost Recovery Sys-
tem.—Application of those sections where
the formal ownership of property is in a
party other than the taxpayer except when
title is held merely as security.
(14) Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a
transfer to a pooled income fund de-
scribed in § 642(c)(5) qualifies for a
charitable contribution deduction under
§ 170(f)(2)(A).
(15) Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a
transfer to a charitable remainder trust
described in § 664 that provides for an-
nuity or unitrust payments for one or two
measuring lives qualifies for a charitable
deduction under § 170(f)(2)(A).
(16) 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.
(17) Section 216.—Deduction of Taxes,
Interest, and Business Depreciation by
Cooperative Housing Corporation Ten-
ant-Stockholder.—If a cooperative hous-
ing 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 interesttransferred, 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 mean-
ing of § 216(b)(1)(D).
(18) Section 262.—See section
4.01(10), above.
(19) Section 265(a)(2).—Inter-
est.—Whether indebtedness is incurred or
continued to purchase or carry obligations
the interest on which is wholly exempt
from the taxes imposed by subtitle A.
(20) Section 302.—Distributions in Re-
demption 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.
(21) 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 liqui-
dation under § 302(b)(4) and (e)(1)(A),
unless 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.)
(22) Sections 302(b)(4) and (e), 331,
332, and 346(a).— Redemption from Non-
corporate Shareholder in Partial Liquida-
tion; Partial Liquidation Defined; Gain or
Loss to Shareholders in Corporate Liqui-
dations; Complete Liquidations of Sub-
sidiaries; Complete Liquidation.—The tax
effect of the liquidation of a corporation
preceded or followed by the transfer of all
or a part of the business assets to another
corporation (i) that is the alter ego of the
liquidating corporation, and (ii) which, di-
rectly or indirectly, is owned more than
20 percent in value by persons holding
directly or indirectly more than 20 per-
cent in value of the liquidating corpora-
tion’s stock. For purposes of this section,
ownership will be determined by applica-
tion of the constructive ownership rules of
§ 318(a) as modified by § 304(c)(3).
(23) Section 306.—Dispositions of Cer-
tain Stock.—Whether the distribution, dis-
position, 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 Liqui-
dations; Complete Liquidation.—The tax
effect of the liquidation of a corporation by
a series of distributions, when the distribu-
tions in liquidation are to be made over a
period in excess of 3 years from the adop-
tion of the plan of liquidation.
(25) Sections 331 and 332.—See sec-
tions 4.01(22) and (24), above.
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2012–1 I.R.B.119January 3, 2012

(26) Section 346(a).—See sections
4.01(22) and (24), above.
(27) Section 351.—Transfer to
Corporation Controlled by Trans-
feror.—Whether § 351 applies to the
transfer of an interest in real property by
a cooperative housing corporation (as de-
scribed in § 216(b)(1)) to a corporation
in exchange for stock or securities of the
transferee corporation, if the transferee en-
gages in commercial activity with respect
to the real property interest transferred.
(28) 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).
(29) 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 predecessor 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 represent-
ing a 50-percent or greater interest in the
distributing corporation or the controlled
corporation that is part of a plan under
§ 355(e).
(30) Section 441(i).—Taxable Year of
Personal Service Corporations.—Whether
the principal activity of the taxpayer dur-
ing the testing period for the taxable year
is the performance of personal services
within the meaning of § 1.441–3(c)(1)(iii).
(31) 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).
(32) Section 451.—General Rule for
Taxable Year of Inclusion.—The tax con-
sequences of a nonqualified deferred
compensation arrangement using a grantor
trust where the trust fails to meet the re-
quirements of Rev. Proc. 92–64, 1992–2
C.B. 422.
(33) Section 451.—General Rule for
Taxable Year of Inclusion.—The income
tax consequences as a result of being a ben-
eficiary of a trust that an Indian tribe (as
defined in 25 U.S.C. § 2703(5)) establishes
to receive and invest per capita payments
for its members who are minors or legal in-
competents under the Indian Gaming Reg-
ulatory 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.
(34) Section 451.—See section 4.01(4),
above.
(35) Section 584.—Common Trust
Funds.—Whether a common trust fund
plan meets the requirements of § 584. (For
§ 584 plan drafting guidance, see Rev.
Proc. 92–51, 1992–1 C.B. 988.)
(36) Section 642.—Special Rules for
Credits and Deductions.—Whether a
pooled income fund satisfies the require-
ments described in § 642(c)(5).
(37) 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.
(38) Section 664.—Charitable Re-
mainder Trusts.—Whether a trust that
will calculate 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 subordi-
nate to a grantor, a trustee, or a beneficiary
can control the timing of the trust’s receipt
of trust income from a partnership or a de-
ferred 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.
(39) 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 as-
sets, causes the trust to have ceased to qual-
ify as a charitable remainder trust within
the meaning of § 664.
(40) Sections 671 to 679.—Grantors
and Others Treated as Substantial Own-
ers.—In a nonqualified, unfunded deferred
compensation arrangement described 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.
(41) 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 investper capita
payments for its members who are mi-
nors or legal incompetents under the In-
dian Gaming Regulatory Act (25 U.S.C.
§§ 2701–2721) is the grantor and owner of
the trust, if the trust meets the requirements
of section 5.02 of Rev. Proc. 2011–56,
2011–49 I.R.B. 834.
(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 1221.—Capital Asset De-
fined.—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 exchange of a capital
asset by the beneficiaries.
(44) Section 1362.—Election; Re-
vocation; Termination.—All situations
in which the Service has provided an
automatic approval procedure or admin-
istrative procedure for an S corporation
to obtain relief for late S corporation,
qualified subchapter S subsidiary, quali-
fied subchapter S trust, or electing small
business trust elections. See Rev. Proc.
2003–43, 2003–1 C.B. 998; Rev. Proc.
2004–48, 2004–2 C.B. 172; Rev. Proc.
2004–49, 2004–2 C.B. 210; and Rev.
Proc. 2007–62, 2007–2 C.B. 786. (For
instructions on how to seek this relief, see
the preceding revenue procedures.)
Sec. 4
January 3, 20121202012–1 I.R.B.

(45)Section1502.—Regula-
tions.—Whether a parent cooperative
housing corporation (as defined in
§ 216(b)(1)) will be permitted to file a
consolidated incometax return with its
transferee subsidiary, if the transferee en-
gages in commercial activity with respect
to the real property interest transferred to
it by the parent.
(46) Section 2055.—Transfers for
Public, 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).
(47) Section 2055.—Transfers for
Public, Charitable, and Religious
Uses.—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 § 2055(e)(2)(A).
(48)Section2503.—Taxable
Gifts.—Whether the transfer of property
to a trust will be a gift of a present interest
in property 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 beneficiaries 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.
(49) 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
beneficiaries 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.
(50) 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).
(51) 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).
(52) Section 2601.—Tax Im-
posed.—Whether a trust that is exempt
from the application of the genera-
tion-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.
(53) 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 expiration
of the specified term is not taken into ac-
count, nor is the value of any reversion
retained by the grantor or the grantor’s
estate.
(54) 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.
(55) Section 3121.—Definitions.—De-
terminations as to which of two entities,
under common law rules applicable in
determining 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 determina-
tion requested is primarily one of fact, e.g.,
market value of property, or whether an in-
terest in a corporation is to be treated as
stock or indebtedness. Although it is gen-
erally 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 Service may
issue a letter ruling. For example, the
Service may issue a letter ruling with re-
spect to an instrument issued by a domes-
tic corporation if (1) the taxpayer believes
that the facts strongly support the classi-
fication of the instrument as stock and (2)
the taxpayer can demonstrate that there are
unique and compelling reasons to justify
the issuance of a letter ruling. However,
before submitting a letter ruling request, a
taxpayer should first contact the Office of
the Associate Chief Counsel (Corporate)
to discuss whether the Service will con-
sider issuing a letter ruling for a particular
factual situation (202–622–7700).
(2) Situations where the requested rul-
ing 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-rulearea,aletter
ruling on other parts of the transaction may
be issued. Before preparing the letter rul-
ing request, a taxpayer should call the Of-
fice of the Associate Chief Counsel hav-
ing jurisdiction for the matters on which
the taxpayer is seeking a letter ruling to
discuss whether a letter ruling will be is-
sued on part of the transaction. To deter-
mine which associate office has jurisdic-
tion over a particular issue see section 3 of
Rev. Proc. 2012–1, this Bulletin. For a
list of telephone numbers for the different
associate offices see section 10.07 of Rev.
Proc. 2012–1.
Notwithstanding the previous para-
graph, the Office of the Associate Chief
Counsel (Corporate) may issue a letter
ruling on part of an integrated transaction
without ruling on the larger transaction if
such transaction occurs in the context of
Sec. 4
2012–1 I.R.B.121January 3, 2012

a § 355 distribution. See section 6.03 of
Rev. Proc. 2012–1.
(3) Situations where two or more items
or sub-methods of accounting are interre-
lated. If two or more items or sub-methods
of accounting are interrelated, ordinarily a
letter ruling will not be issued on a change
in accounting methodinvolving 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 involv-
ing bankruptcy reorganizations.
(7) (a) Situations where the 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 (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 exam-
ination in order to verify the accuracy of
the representations made and to otherwise
analyze or examine the tax issues involved
in the ruling request, and (ii) waives all
claims to protection of bank or commer-
cial 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 rele-
vant 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.
(8) A matter involving the Federal tax
consequences of any proposed Federal,
state, local, municipal, or foreign legis-
lation. The Service may provide general
information in response to an inquiry.
However, the Office of Division Coun-
sel/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 rul-
ing request relating to the plan complies
with the other requirements of Rev. Proc.
2012–1, this Bulletin.
(9) Except as otherwise provided
in this revenue procedure (e.g., under
section 3.01(39)), where the Service
already is ruling on a significant
issue in the same transaction), a letter
ruling will not ordinarily be issued
with respect to an issue that is clearly
and adequately addressed by statute,
regulations, decisions of a court, revenue
rulings, revenue procedures, notices, or
other authority published in the Internal
Revenue Bulletin. However, the Service
may in its discretion determine to issue
arulingonsuchanissueiftheService
otherwise is issuing a ruling on another
issuearisinginthesametransaction.
(10) Whether an amount received (in
periodic payments or as a lump sum) in
connection with a legal action or a set-
tlement of a legal action is properly allo-
cated (including an allocation of all pay-
ments to one category) to recovery of capi-
tal, compensatory damages, punitive dam-
ages, dividends, interest, back pay, etc., for
Federal tax purposes.
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.
(1) Section 62(c).—Certain Arrange-
ments Not Treated as Reimbursement
Arrangements.—Whether amounts related
to a salary reduction and paid under a
purported reimbursement or other expense
allowance arrangement will be treated as
paid under an “accountable plan” in accor-
dance 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.—Per-
mission to use a single yield for two or
more issues of qualified mortgage bonds
or qualified student loan bonds under
§ 1.148–4(a).
(4) Sections 162 and 1502.—Trade or
Business Expenses; Regulations.—Treat-
ment of manufacturerincentive 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) applies
to compensation attributable to services
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) 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.
(8) 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)) es-
tablishes to receive and investper capita
payments for its members (regardless of
whether they are minors or legal incompe-
tents) under the Indian Gaming Regulatory
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.
(9) Section 613A.—Limitations on Per-
centage 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).
(10) Sections 661 and 662.—Deduction
for Estates and Trusts Accumulating In-
come or Distributing Corpus; Inclusion of
Amounts in Gross Income of Beneficia-
ries of Estates and Trusts Accumulating
Income or Distributing Corpus.—Whether
the distribution of property by a trustee
Sec. 4
January 3, 20121222012–1 I.R.B.

from an irrevocable trust to another irrevo-
cable trust (sometimes referred to as a “de-
canting”) resultinginachangeinbene-
ficial interests is a distribution 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.
(11) Sections 671 to 679.—Grantors
and Others Treated asSubstantial Own-
ers.—Whether an Indian tribe (as defined
in 25 U.S.C. § 2703(5)) that establishes
a trust to receive and investper capita
payments for its members (regardless of
whether they are minors or legal incompe-
tents) under the Indian Gaming Regulatory
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.
(12) 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 partnership
is eligible to elect S corporation status as
a request for a ruling on whether the part-
nership complies with § 1361(b)(1)(D).
(13) Section 1502.—See section
5.01(4), above.
(14) Section 2036.—Transfers with Re-
tained Life Estate.—Whether the corpus of
a trust will be included in a grantor’s es-
tate when the trustee of the trust is a private
trust company owned partially or entirely
by members of the grantor’s family.
(15) 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.
(16) 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.
(17) 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
under § 2501.
(18) Sections 2601 and 2663.—Tax Im-
posed; Regulations.—Whether the distri-
bution of property by a trustee from an ir-
revocable generation-skipping transfer tax
(GST) exempt trust to another irrevocable
trust (sometimes referred to as a “decant-
ing”) resulting in a change in beneficial in-
terestsisthelossofGSTexemptstatusor
constitutes a taxable termination or taxable
distribution under § 2612.
(19) Section 6050P.—Returns Relating
to the Cancellation of Indebtedness by Cer-
tain Entities.—Whether amounts reduced
pursuant to the terms of a debt instrument
are reportable under § 6050P and the reg-
ulations.
(20) Section 7702.—See section
5.01(2), above.
.02 General Areas.
Whether a completed transaction can be
rescinded for Federal income tax purposes.
SECTION 6. AREAS COVERED
BY AUTOMATIC APPROVAL
PROCEDURES IN WHICH RULINGS
WILL NOT ORDINARILY BE
ISSUED
.01 Section 338.—Certain Stock
Purchases Treated as Asset Acquisi-
tions.—All requests for an extension of
time under § 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 an extension.
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
change in annual accounting period where
the Service has provided an automatic
change procedure for obtaining a change
in annual accounting period. See Rev.
Proc. 2002–39, 2002–1 C.B. 1046 (gen-
eral 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 change in
method of accounting where the Service
has provided an automatic change re-
quest procedure for obtaining a change in
method of accounting. See the automatic
change request procedures listed in section
9.22 of Rev. Proc. 2012–1, this Bulletin.
.04 Section 461.—General Rule for
Taxable Year of Deduction.—All requests
formakingorrevokinganelectionunder
§ 461 where the Service has provided an
administrative procedure for making or re-
voking 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 estimated cost of
certain common improvements in a real
estate development).
.05 Section 704(c).—Contributed Prop-
erty.—Requests from Qualified Master
Feeder Structures, as described in section
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; Revo-
cation; Termination.—All situations in
which an S corporation qualifies for auto-
matic late S corporation relief under Rev.
Proc. 97–48, 1997–2 C.B. 521.
.07 Sections 1502, 1504, and
1552.—Regulations; Definitions; Earn-
ings and Profits.—All requests for waivers
or consents on consolidated return issues
where the Service has provided an admin-
istrative procedure for obtaining 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 mod-
ified by Rev. Proc. 2006–21, and as
clarified by Rev. Proc. 90–39A, 1990–2
C.B. 367 (certain affiliated groups of cor-
porations seeking, for earnings and profits
determinations, to make an election or a
change in their method of allocating the
group’s consolidated Federal income tax
Sec. 6
2012–1 I.R.B.123January 3, 2012

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 where member(s) of the group use
a 52–53 week taxable year).
.08 Section 7701.—Definitions.—All
requests for an extension of time un-
der § 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
an extension. See Rev. Proc. 2009–41,
2009–39 I.R.B. 439 (extension automati-
cally granted to certain persons required
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. 2011–3, 2011–1 I.R.B. 111,
is superseded.
SECTION 8. EFFECTIVE DATE
This revenue procedure is effective Jan-
uary 3, 2012.
SECTION 9. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Office
of Management and Budget in accor-
dance 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 2.03 and
3.01(39).
This information is required to evaluate
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 required to
obtain a letter ruling or determination let-
ter. The likely respondents are businesses
or other for-profit institutions.
The estimated total annual reporting
and/or recordkeeping burden of this rev-
enue procedure, and Rev. Proc. 2012–1,
this Bulletin, is 305,540 hours.
The estimated annual burden per re-
spondent/recordkeeper varies from 1 hour
to 200 hours, depending on individual
circumstances, with an estimated average
burden of 79.88 hours. The estimated
number of respondents and/or record keep-
ersis3,825.
The estimated annual frequency of re-
sponses 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 26 U.S.C. § 6103.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Amie Colwell Breslow of
theOfficeoftheAssociateChiefCoun-
sel (Corporate). For further information
about this revenue procedure, please con-
tact Ms. Breslow at (202) 622–7530 (not
a toll-free call), or call the associate office
contacts listed in section 10.07 of Rev.
Proc. 2012–1, this Bulletin. See section 3
of Rev. Proc. 2012–1 to determine which
associate office has jurisdiction over a
particular issue.
Sec. 6
January 3, 20121242012–1 I.R.B.

26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2012–4
TABLE OF CONTENTS
SECTION 1. WHAT IS THE P
URPOSE OF THIS REVENUE PROCEDURE?
............................
.................. 128
SECTION 2. WHAT CHANGES HAVE BEEN MADE TO REV. PROC. 2011–4?............................................ 128
SECTION 3. IN WHAT FORM IS GUIDANCE PROVIDED BY THE COMMISSIONER, TAX EXEMPT AND
GOVERNMENT ENTITIES DIVISION?
.................................................................. 129
.01Ingeneral .................................................................................................. 129
.02Letterruling ................................................................................................ 129
.03Closingagreement .......................................................................................... 129
.04Determinationletter.......................................................................................... 129
.05Opinionletter............................................................................................... 129
.06Informationletter............................................................................................ 130
.07Revenueruling.............................................................................................. 130
.08Oraladvice................................................................................................. 130
(1)Nooralrulings,andnowrittenrulingsinresponsetooralrequests ............................................. 130
(2)Discussionpossibleonsubstantiveissues ................................................................... 130
(3)Oralguidanceisadvisoryonly,andtheServiceisnotboundbyit............................................... 131
.09Nonbanktrusteerequests .................................................................................... 131
.10ComplianceStatement ....................................................................................... 131
.11Advisoryletter.............................................................................................. 131
SECTION 4. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER THIS
PROCEDURE?
........................................................................................ 131
SECTION 5. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER DIFFERENT
PROCEDURES?
....................................................................................... 132
.01Determinationletters ........................................................................................ 132
.02Masterandprototypeplansandvolumesubmitterplans.......................................................... 132
.03ClosingagreementprogramfordefinedcontributionplansthatpurchasedGICsorGACs ............................ 132
.04EmployeePlansComplianceResolutionSystem ................................................................ 132
.05ChiefCounsel .............................................................................................. 132
.06 Alcohol, tobacco, and firearms taxes.......................................................................... 132
SECTION 6. UNDER WHAT CIRCUMSTANCES DOES TE/GE ISSUE LETTER RULINGS?................................ 132
.01Inexemptorganizationsmatters .............................................................................. 132
.02Inemployeeplansmatters.................................................................................... 133
.03Inqualificationsmatters ..................................................................................... 133
.04 Request for extension of time for making an election or for other relief under § 301.9100–1 of the
ProcedureandAdministrationRegulations ..................................................................... 133
.05Issuanceofaletterrulingbeforetheissuanceofaregulationorotherpublishedguidance ............................ 134
.06Issuesinpriorreturn ........................................................................................ 134
.07Generallynottobusinessassociationsorgroups ................................................................ 134
.08Generallynottoforeigngovernments ......................................................................... 135
.09Generallynotonfederaltaxconsequencesofproposedlegislation ................................................ 135
.10Notoncertainmattersunder§53.4958–6oftheFoundationandSimilarExciseTaxesRegulations ................... 135
.11Notonstockoptions......................................................................................... 135
.12GenerallynotonEOjointventurewithafor-profitorganization .................................................. 135
.13Notonqualificationofstaterunprogramsunder§529........................................................... 135
.14NotonUBITissuesinvolvingcertaininvestmentsofacharitableleadtrust......................................... 135
.15Notonissuesunder§4966or§4967.......................................................................... 135
.16Notonissuesunder§507,§4941or§4945.................................................................... 135
.17Generallynottopartnershipsorlimitedliabilitycompanies....................................................... 135
2012–1 I.R.B.125January 3, 2012

.18 Not on self-dealing issues involving the issuance of a promissory note by a disqualified person
duringtheadministrationofanestateortrust.................................................................... 135
SECTION 7. UNDER WHAT CIRCUMSTANCESDOES EP OR EO DETERMINATIONS ISSUE
DETERMINATION LETTERS?
.......................................................................... 136
.01Circumstancesunderwhichdeterminationlettersareissued ...................................................... 136
.02Ingeneral .................................................................................................. 136
.03Inemployeeplansmatters.................................................................................... 136
.04Inexemptorganizationsmatters .............................................................................. 136
.05Circumstancesunderwhichdeterminationlettersarenotissued................................................... 137
.06Requestsinvolvingreturnsalreadyfiled ....................................................................... 137
.07Attachacopyofdeterminationlettertotaxpayer’sreturn ........................................................ 137
.08Reviewofdeterminationletters ............................................................................... 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
.02No“comfort”letterrulings ................................................................................... 138
.03Notonalternativeplansorhypotheticalsituations............................................................... 138
.04Ordinarilynotonpartofanintegratedtransaction............................................................... 138
.05Notonpartialterminationsofemployeeplans .................................................................. 138
.06Lawrequiresletterruling..................................................................................... 138
.07IssuesunderconsiderationbyPBGCorDOL................................................................... 138
.08Cafeteriaplans.............................................................................................. 138
.09Determinationletters ........................................................................................ 138
.10Domicileinaforeignjurisdiction ............................................................................. 138
.11EmployeeStockOwnershipPlans............................................................................. 139
.12GovernmentalPlans ......................................................................................... 139
SECTION 9. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS AND
DETERMINATION LETTERS?
......................................................................... 139
.01Ingeneral .................................................................................................. 139
.02Certaininformationrequiredinallrequests .................................................................... 139
(1)Completestatementoffactsandotherinformation ........................................................... 139
(2) Copies of all contracts, wills, deeds, agreements, instruments, plan documents, and other
documents............................................................................................... 140
(3)Analysisofmaterialfacts.................................................................................. 140
(4)Statementregardingwhethersameissueisinanearlierreturn.................................................. 140
(5) Statement regarding whether same or similar issue was previously ruled on or requested, or is
currentlypending......................................................................................... 140
(6)Statementofsupportingauthorities. ........................................................................ 141
(7)Statementofcontraryauthorities. .......................................................................... 141
(8)Statementidentifyingpendinglegislation.................................................................... 141
(9) Statement identifying information to be deleted from copy of letter ruling or determination letter
forpublicinspection...................................................................................... 141
(10)Signaturebytaxpayerorauthorizedrepresentative........................................................... 143
(11)Authorizedrepresentatives................................................................................ 143
(12)Powerofattorneyanddeclarationofrepresentative.......................................................... 144
(13)Penaltiesofperjurystatement............................................................................. 144
(14)Applicableuserfee...................................................................................... 145
(15)Numberofcopiesofrequesttobesubmitted................................................................ 145
(16)Sampleformatforaletterrulingrequest.................................................................... 145
(17)Checklistforletterrulingrequests......................................................................... 145
.03Additionalinformationrequiredincertaincircumstances ........................................................ 145
(1)Torequestseparateletterrulingsformultipleissuesinasinglesituation......................................... 145
(2)Recipientoforiginalofletterrulingordeterminationletter..................................................... 146
(3)Torequestexpeditedhandling.............................................................................. 146
(4) To receive a letter ruling or submit a request for aletter ruling by facsimile transmission (fax)..................... 147
(5)Torequestaconference................................................................................... 147
January 3, 20121262012–1 I.R.B.

.04Addresstosendtherequest................................................................................... 147
(1)Requestsforletterrulings................................................................................. 147
(2)Requestsforinformationletters............................................................................ 148
(3)Requestsfordeterminationletters.......................................................................... 148
.05Pendingletterrulingrequests ................................................................................. 148
.06Whentoattachletterrulingtoreturn .......................................................................... 149
.07Howtocheckonstatusofrequest ............................................................................. 149
.08RequestmaybewithdrawnorEPorEOTechnicalmaydeclinetoissueletterruling ................................ 149
.09CompliancewithTreasuryDepartmentCircularNo.230......................................................... 149
SECTION 10. WHAT SPECIFIC, ADDITIONAL PROCEDURES APPLY TO CERTAIN REQUESTS?........................ 149
.01Ingeneral .................................................................................................. 149
.02ExemptOrganizations ....................................................................................... 149
.03EmployeePlans............................................................................................. 150
SECTION 11. HOW DOES EP OR EO TECHNICAL HANDLE LETTER RULING REQUESTS?............................. 150
.01Ingeneral .................................................................................................. 150
.02Isnotboundbyinformalopinionexpressed .................................................................... 150
.03Tellstaxpayerifrequestlacksessentialinformationduringinitialcontact .......................................... 150
.04Requirespromptsubmissionofadditionalinformationrequestedafterinitialcontact................................. 151
.05 Near the completion of the ruling process, advises taxpayer of conclusions and, if the Service will
ruleadversely,offersthetaxpayertheopportunitytowithdrawtheletterrulingrequest............................... 152
.06Mayrequestdraftofproposedletterrulingnearthecompletionoftherulingprocess ................................ 152
SECTION 12. HOW ARE CONFERENCES SCHEDULED?............................................................. 152
.01Schedulesaconferenceifrequestedbytaxpayer ................................................................ 152
.02Permitstaxpayeroneconferenceofright....................................................................... 152
.03Disallowsverbatimrecordingofconferences ................................................................... 153
.04Makestentativerecommendationsonsubstantiveissues ......................................................... 153
.05Mayofferadditionalconferences ............................................................................. 153
.06Requireswrittenconfirmationofinformationpresentedatconference ............................................. 153
.07Mayscheduleapre-submissionconference..................................................................... 153
.08Underlimitedcircumstances,mayscheduleaconferencetobeheldbytelephone ................................... 154
.09ConferencerulesforEOdeterminationlettersnotsubjectto§7428or§501or§521 ............................... 154
SECTION 13
. WHAT EFFECT WILL A LETTER RULING HAVE?
....................................
.................. 154
.01 May be r
eliedonsubjecttolimitations.......................................................
.................. 154
.02 Will no
tapplytoanothertaxpayer ..........................................................
.................. 154
.03 Will be
usedbyTE/GEinexaminingthetaxpayer’sreturn......................................
.................. 154
.04 May be r
evokedormodifiediffoundtobeinerror ............................................
.................. 154
.05 Not gen
erallyrevokedormodifiedretroactively ..............................................
.................. 155
.06 Retro
activeeffectofrevocationormodificationappliedonlytoaparticulartransaction............
.................. 155
.07 Retro
active effect of revocation or modification applied to a continuing action or series of actions . .
.................. 156
.08 May be
retroactively revokedor modified when transaction is completed without reliance on the
letter ru
ling...............................................................................
.................. 156
.09 Taxp
ayermayrequestthatretroactivitybelimited.............................................
.................. 156
(1) Requ
estforreliefunder§7805(b)mustbemadeinrequiredformat...........................
.................. 156
(2) Taxp
ayermayrequestaconferenceonapplicationof§7805(b). .............................
.................. 157
SECTION 14. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?............................................ 157
.01Hassameeffectasaletterruling .............................................................................. 157
.02Taxpayermayrequestthatretroactiveeffectofrevocationormodificationbelimited................................ 157
(1)Requestforreliefunder§7805(b)mustbemadeinrequiredformat............................................. 157
(2)Taxpayermayrequestaconferenceonapplicationof§7805(b). ............................................... 157
(3)Taxpayerstepsinexhaustingadministrativeremedies......................................................... 157
SECTION 15. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN
DETERMINATIONS AND TECHNICAL?
................................................................ 158
.01Requestsfordeterminationletters ............................................................................. 158
2012–1 I.R.B.127January 3, 2012

.02No-ruleareas ............................................................................................... 158
.03Requestsforletterrulings .................................................................................... 158
SECTION 16. WHAT ARE THE GENERAL PROCEDURES APPLICABLE TO INFORMATION LETTERS
ISSUED BY THE HEADQUARTERS OFFICE?
............................................................ 158
.01Willbemadeavailabletothepublic ........................................................................... 158
.02DeletionsmadeundertheFreedomofInformationAct .......................................................... 159
.03Effectofinformationletters .................................................................................. 159
SECTION 17. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?..................... 159
SECTION 18. EFFECTIVE DATE................................................................................... 159
SECTION 19. PAPERWORK REDUCTION ACT...................................................................... 159
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 tax-
payers on issues under the jurisdiction of theCommissioner, Tax Exempt and Government
Entities Division. It explains the kinds of guidance and the manner in which guidance is re-
quested 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. 2011–4?
.01 This revenue procedure is a general update of Rev. Proc. 2011–4, 2011–1 I.R.B. 123
which contains the Service’s general procedures for employee plans and exempt organizations
letter ruling requests. Most of the changes to Rev. Proc. 2011–4 involve minor revisions, such
as updating citations to other revenue procedures.
.02 Section 6 is revised to eliminate the no-rule provision on issues under § 4965 because
final regulations have been issued.
.03 Section 7.02 is revised to remove references to EO Technical and EO Determinations.
.04 Section 7.04(1) is r
evised to add language regarding reinstatement of organizations that
have been automaticall
y revoked and subordinate organizations in a group ruling that have
been revoked.
.05Section7.04ismodifiedtoaddsubsections(13) and (14), referencing determination of
foundation status under § 509(a)(3) and government entity voluntary termination of § 501(c)(3)
recognition, respectively.
.06 Section 9.01 is modified to reference the requirement that Form 8940,Request for Mis-
cellaneous Determination, be included in certain determination requests.
.07 Section 9.08(1) is modified by referencing section 6 of Rev. Proc. 2012–9.
.08 Section 10.02 is modified by adding references to Notice 2011–43 and Notice 2011–44.
.09 Section 10.03 is modified by referencing Rev. Proc. 2011–44.
Sec. 1
January 3, 20121282012–1 I.R.B.

.10 Appendix E (Additional Checklist for Church Plan Ruling Requests) is modified to re-
flect the changes described in Rev. Proc. 2011–44.
SECTION3.INWHATFORM
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, com-
pliance 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 E
mployee
Plans Technical office or Exempt Organizations Technical office that interpret
s and applies the
tax laws or any nontax laws applicable toemployee benefit plans and exempt organ
izations to
the taxpayer’s specific set of facts. Once issued, a letter ruling may be revoke
d or modified
for any number of reasons, as explained in section 13 of this revenue procedure
,unlessitis
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 beensigned 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 perma-
nently 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 askedto 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. How-
ever, 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 proto-
type plans.
A closing agreement may also be entered into with respect to retirement plan failures cor-
rected under the Audit Closing Agreement Program of the Employee Plans Compliance Reso-
lution System (EPCRS), as set forth in Rev. Proc. 2008–50, 2008–2 C.B. 464.
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 previ-
ously announced to a specific set of facts. It isissued 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. 2012–6, page 197, this Bulletin.
Opinion letter.05 An “opinion letter” is a written statement issued by the Service to a sponsor or M&P
mass submitter as to the acceptability of the form of an M&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
Sec. 3.05
2012–1 I.R.B.129January 3, 2012

the conformance of a prototypetrust, custodial account, or individual annuity with the require-
ments of § 408(a), (b), (k) or (p) or 408A, as applicable.SeeRev. Proc. 2011–49, 2011–44
I.R.B. 608.See alsoRev. 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, and Rev. Proc. 2010–48, 2010–50,
I.R.B. 828, as modified by Rev. Proc. 2012–8, page 235, 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 generalinformation 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 tele-
phone 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 toinformation letters.
An information letter is advisory onlyand 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 appli-
cation 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 subse-
quent legislation, regulations, court decisions,revenue rulings, notices, and announcements.
SeeRev. Proc. 89–14, 1989–1 C.B. 814, as amended by Announcement 89–36, 1989–1 C.B.
32, which states the objectives of and standards for the publication of revenue rulings and rev-
enue procedures in the Internal Revenue Bulletin.
Oral advice.08
(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 em-
ployees ordinarily will discuss with taxpayers or their representatives inquiries about whether
the Service will rule on particular issues and about procedural matters regarding the submis-
sion 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 represen-
tatives 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.
Sec. 3.05
January 3, 20121302012–1 I.R.B.

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 ex
-
amining 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 appli-
cation must be filed that demonstrates how theapplicant complies with the requirements of
§ 1.408–2(e)(2) through (5) of the Income Tax Regulations.
The Service must have clear and convincing proofin its files that the requirements of the reg-
ulations are met. If there is a requirement that the applicant feels is not applicable, the applica-
tion must provide clear and convincing proof that such requirement is not germane to the man-
ner 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. 2012–8 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. 2008–50).
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.SeeRev. Proc. 2008–50.
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).SeeRev. Proc. 2011–49, 2011–44 I.R.B. 608.
SECTION 4. ON WHAT ISSUES
MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER
THIS PROCEDURE?
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 rulingsto 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 juris-
diction of the Commissioner, Tax Exempt and Government Entities Division.SeeRev. Proc.
2012–6, this Bulletin.
Sec. 4
2012–1 I.R.B.131January 3, 2012

SECTION 5. ON WHAT ISSUES
MUST WRITTEN GUIDANCE
BE REQUESTED UNDER
DIFFERENT PROCEDURES?
Determination letters.01 The procedures for obtaining determination letters involving §§ 401, 403(a), 409, and
4975(e)(7), and the status forexemption of any related trusts or custodial accounts under
§ 501(a) are contained in Rev. Proc. 2012–6, this Bulletin.
Master and prototype plans and
volume submitter plans
.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. 2012–8.
Closing agreement program for
defined contribution plans that
purchased GICs or GACs
.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 invest-
ment contracts (GICs) or group annuity contracts (GACs) from troubled life insurance compa-
nies.
Employee Plans Compliance
Resolution System
.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. 2008–50.
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. 2012–1, 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.
SECTION6. UNDERWHAT
CIRCUMSTANCES DOES
TE/GE ISSUE LETTER
RULINGS?
In exempt organizations matters.01 In exempt organizations matters, the Exempt Organizations Technical Office issues let-
ter rulings on proposed transactions and on completed transactions if the request is submitted
before 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 program
s;
(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;
(7) Harassment campaign rulings described in § 6104(d).
Sec. 5
January 3, 20121322012–1 I.R.B.

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 (SeeRev. 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 (asthat term is defined in § 412(m)(5)) excis
e 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) and412(f)(2)(A) of the Code (SeeRev. 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 (SeeRev. 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 em-
ployees meet the requirements of § 408(c). (SeeRev. 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.
2012–8);
(9) With respect to employee stock ownershipplans and tax credit employee stock own-
ership plans, §§ 409(l), 409(m), and 4975(d)(3). Other subsections of §§ 409 and 4975(e)(7)
involve qualification issues within the jurisdiction of EP Determinations.
(10) Where the Commissioner, Tax Exempt and Government Entities Division has author-
ity to grant extensions of certain periods of time within which the taxpayer must perform cer-
tain 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 headquarters 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 Ad-
ministration Regulations.
In qualifications matters.03 The Employee Plans Technicaloffice ordinarily will not issue letter rulings on matters
involving a plan’s qualified status under §§ 401through 420 and § 4975(e)(7). These matters
are generally handled by the Employee Plans Determinations program as provided in Rev.
Proc. 2012–6, 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.
Request for extension of time for
making an election or for other
relief under § 301.9100–1 of the
Procedure and Administration
Regulations
.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 theissues in the return are being considered by an
Sec. 6.04
2012–1 I.R.B.133January 3, 2012

appeals office or a federal court. In such a case, EP or EO Technical will notify the Director,
EP or EO Examinations.
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 re-
quire 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 ofthis 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 beforea regulation or any other published guid-
ance 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’sreturn 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 theidentical issue on an earlier year’s return has
been started by the Director, EP or EO Examinations.Seesection 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 associ-
ations 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 appro-
priately addressed in revenue rulings.SeeRev. Proc. 89–14, 1989–1 C.B. 814, as amended
by Announcement 89–36, 1989–1 C.B. 32, which states objectives of, and standards for, the
publication of revenue rulingsand 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.
Sec. 6.04
January 3, 20121342012–1 I.R.B.

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 rulingsas 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 Regula-
tions.
Not on stock options.11 EP Technical does not issue letter rulings on the income tax (including unrelated busi-
ness 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 asto whether a state run tuition program qual-
ifies 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 assetsare 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 regula-
tions 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.
Not on self-dealing issues involving
the issuance of a promissory note
by a disqualified person during
the administration of an estate or
trust
.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.
Sec. 6.18
2012–1 I.R.B.135January 3, 2012

SECTION7. UNDERWHAT
CIRCUMSTANCES DOES EP
OR EO DETERMINATIONS
ISSUE DETERMINATION
LETTERS?
Circumstances under which
determination letters are is
sued
.01 Employee Plans or Exempt O
rganizations Determinationsissues determination letters
only if the question presente
d is specifically answered by a statute, tax treaty, or regulation, or
by a conclusion stated in a re
venue ruling, opinion, or court decision published in the Internal
Revenue Bulletin.
In general.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.
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 determina-
tion 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.SeeRev. Proc. 2012–6, this Bulletin.
In exempt organizations matters.04 In exempt organizations matters, the Exempt Organizations Determinations office issues
determination letters involving:
(1) Initial qualification for exempt statusof organizations described in §§ 501 and 521
to the extent provided in Rev. Proc. 2012–9, the next Bulletin (including reinstatement of
organizations that have been automatically revoked pursuant to § 6033(j) and subordinate or-
ganizations in a group ruling 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 (12) below;
(3) Classification of private foundation status as provided in 2012–10, the next Bulletin;
(4) Reclassification of private foundation status, including operating foundation status de-
scribed in § 4942(j)(3) and exempt operating foundation status described in § 4940(d), as pro-
vided in Rev. Proc. 2012–10, 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 Regula-
tions 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 publiccharity 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. 2012–10, the next Bulletin;
Sec. 7
January 3, 20121362012–1 I.R.B.

(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 un-
der 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. 2012–10, next Bulletin; and
(14) Government entity voluntary termination of § 501(c)(3) recognition (must include doc-
umentation 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 taxpayeror 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 exam-
ination, 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 trans-
action 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 Technicalbefore 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 EPor EO Technical as explained
in Rev. Proc. 2012–5, 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.
2012–6.
(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. 2012–9.
Sec. 7.08
2012–1 I.R.B.137January 3, 2012

SECTION8. UNDERWHAT
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 rul-
ing, 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 trans-
action. 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, ataxpayer should call the office having juris-
diction 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 regula-
tions require a determination of the effectof 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 ordetermination letters on whether a cafeteria
plan satisfies the requirements of § 125.See alsoRev. Proc. 2012–3, 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.09Seesection 3.02 of Rev. Proc. 2012–6 for employee plans matters on which determina-
tion 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 examina-
tions and criminal investigations, which would preclude the Service from obtaining informa-
tion 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
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January 3, 20121382012–1 I.R.B.

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 isdetermined 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 determi-
nation letters on all matters. Requests for letterrulings and determination letters require the
payment of the applicable user fee discussed insection 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 determ
ina-
tion letters on certain matters. Those matters are listed in section 10 of this revenue pro
cedure
followed by a reference (usually to another revenue procedure) where more information c
an
be obtained.
Certain information required in
all requests
.02
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 in-
terested 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
(c) a detailed description of the transaction.
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.
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2012–1 I.R.B.139January 3, 2012

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 dis-
claimers) must be submitted with the request.
Original documentsshould not be submittedbecause 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 al-
phabetically 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 let-
ters. 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 represen-
tatives, 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 ex-
pired 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 pe-
riod 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 Corpo-
ration 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 re-
quested, 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 sub-
mitted 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 involv-
ing the same or a similar issue that is currently pending with the Service; or
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January 3, 20121402012–1 I.R.B.

(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 Ser-
vice 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, noticesor 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 tax-
payer must identify any pending legislation that may affect the proposed transaction. In addi-
tion, 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 de-
termination 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 state-
ment indicating the deletions desired (“deletionsstatement”). 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 determina-
tion letter is issued, additional deletions statements may be submitted.
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2012–1 I.R.B.141January 3, 2012

(b) Location of deletions statement.The deletions statement must not appear in the re-
quest, but instead must be made in a separatedocument 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 ta
xpayer 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 pro-
pose 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 com-
munications 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 thatthe 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 deletionsproposed 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 Servicereceives 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 concerningmaterial 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 within60 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 Serviceoffice indicated on thenotice 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) st
ates that § 6110 disclosure provisions do not apply to any matter to
which § 6104 applies. T
herefore, letter rulings, determination letters, technical advice memo-
randa, and related bac
kground 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) asan 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 pen-
sion, 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;
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January 3, 20121422012–1 I.R.B.

(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 nora 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 cur-
rently under suspension or disbarment from practicebeforetheService.Heorshemustfilea
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 qualifiedto practice in any state, possession, terri-
tory, 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 who 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 who 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 un-
der 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 represen-
tation with respect to issues involving the following statutory provisions: §§ 401, 403(a), 404,
412, 413, 414, 4971, 6057, 6058, 6059, 6652(d), 6652(e), 6692, 7805(b), 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 Responsi-
bility (the “OPR”). The Director of the OPR maygrantenrollmentasanERPAtoanapplicant
who demonstrates special competence in qualified retirement plan matters (by either passing a
written examination or by virtue of past serviceand 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 andcontinuing education requirements.
Practice as an ERPA is limited to representation with respect to issues involving the follow-
ing programs: Employee Plans DeterminationLetter program; Employee Plans Compliance
Resolution System; and Employee Plans Master and Prototype and Volume Submitter pro-
gram. In addition, ERPAs are generally permitted to represent taxpayers with respect to Form
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2012–1 I.R.B.143January 3, 2012

5300 series and Form 5500 filings, but not withrespect 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 Au-
thorization” 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 represent
ing his
or her employer, to a general partner representing his or her partnership, to a bon
afideoffi-
cer representing his or her corporation, association, or organized group, to a t
rustee, receiver,
guardian, personal representative, administrator, or executor representing
a trust, receivership,
guardianship, or estate, or to an individual representing his or her immediat
e 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 office
r, an administra-
tor, 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 techni
cal advice request.
Seesection 10.7(c) of Treasury Department Circular No. 230;
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 authorizedto practice before the Service and, therefore,
must withdraw from representing a taxpayer in arequest 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 representa-
tive, 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 (2005)),
which provide the rules for representing a taxpayer before the Service. In addition, an unen-
rolled preparer must file a Form 8821 (Rev. August 2008), Tax Information Authorization, for
certain limited employee plans matters.
Form 2848 (Rev. June 2008), Power of Attorneyand 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 ofForm 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 powerof 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.
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January 3, 20121442012–1 I.R.B.

(b) Signature by taxpayer.The declaration must be signed and dated by the taxpayer, not
the taxpayer’s representative.Neither a stamped signature nora 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 fe
es
for requests for rulings, opinion letters, determination letters, and similar r
equests. Rev. Proc.
2012–8 contains the schedule of fees for each type of request under the jurisdicti
on of the
Commissioner, Tax Exempt and Government Entities Division and provides guida
nce for ad-
ministering 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 a
dditional 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 num-
bers, 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 re-
questedontheissuepresented.
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
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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 thespecific 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. June 2008), must be used to provide the representative’s
authorization except in certain employee plans matters.Seesection 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
the first representative named on the most recent power of attorney. If the taxpayer wants an
additional copy of the letter ruling or determination letter sent to the second representative
listed in the power of attorney, the taxpayer must check the appropriate box on Form 2848. If
this form is not used, the taxpayer must state in the power of attorney that a copy of the letter
ruling or determination letter is to be sent to the second representative listed in the power of
attorney. Copies of the letter ruling or determination letter, however, will be sent to no more
than two representatives.
Copy of letter ruling or
determination letter sent to
taxpayer’s representative
(b) To have copy sent to taxpayer’s representative.
A copy of the letter ruling or determination letter will be sent to the taxpayer’s representa-
tive.
If the taxpayer wants a copy of the letter ruling or determination letter sent to the taxpayer’s
second representative, the taxpayer must check the appropriate box on Form 2848.
No copy of letter ruling or
determination letter sent to
taxpayer’s representative
(c) To have no copy sent to taxpayer’s representative.If a taxpayer does not want a copy
of the letter ruling or determination letter sent to any representative, the taxpayer must check
the appropriate box on Form 2848.
Expedited handling(3) 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 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 togive appropriate deference to normal business
exigencies in all cases not involving expedited handling.
A taxpayer who has a compelling need to have a request processed ahead of the regular order
may request expedited handling. This requestmust 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 ordetermination letter. If the request is not made
in a separate letter, then the letter in which the letter ruling or determination letter 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
Sec. 9.03
January 3, 20121462012–1 I.R.B.

a letter ruling or determination letter before acertain time in order to avoid serious business
consequences. Examples include situations inwhich a court or governmental agency has im-
posed a specific deadline for the completion of a transaction, or a transaction must be com-
pleted 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 busi-
ness 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 determinationletter complies with all of the applicable re-
quirements of this revenue procedure, and fullyand clearly presents the issues, is a factor in
determining whether expedited treatment willbe 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 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 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 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 trans-
mission (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 identifiesthe 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)Tosubmitarequestfor 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 alsosections
12.01, 12.02, and 13.09(2) of this revenue procedure.
Address to send the request.04
Requests for letter rulings(1) Requests for letter rulings should be sent to the following offices (as appropriate):
Sec. 9.04
2012–1 I.R.B.147January 3, 2012

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, D.C. 20224
Requests for information letters(2) Requests for information letters on either employee plans matters or exempt organiza-
tions 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, D.C. 20224
Requests for determination letters(3) Requests for either (i) EP determinationletters or (ii) EO determination letters thatare
subject to a user feeshould be sent to:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012–0192
Requests for EO determination letters that arenot subject to a user feeshould be sent to:
Internal Revenue Service
P.O. Box 2508
Rm. 4024
Cincinnati, OH 45201
For fees required with determination letter requests, see section 6 of Rev. Proc. 2012–8.
Pending letter ruling requests.05
(1)
Circumstances under which the taxpayer must notify EP or EO Technical.The
tax
payer must notify EP or EO Technical if, after the letter ruling request is filed but before a
le
tter 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
(c) legislation that may affect the transaction has been introduced (seesection 9.02(8) of
this revenue procedure).
Sec. 9.04
January 3, 20121482012–1 I.R.B.

(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 Techni-
cal 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 obtaininformation regard-
ing 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
issueletterruling
.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 islimitedbysection6ofRev. Proc. 2012–9, next
Bulletin. Correspondence and exhibits relatedtoarequestthatiswithdrawnorrelatedtoa
letter ruling request for which the Service declines to issue a letter ruling will not be returned
to the taxpayer.Seesection 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 Examinationsto 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.Seesection 10 of Rev. Proc.2012–8 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 Ser-
vice. 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 proceduresand 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 in-
come 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;
Sec. 10.02
2012–1 I.R.B.149January 3, 2012

Rev. Proc. 2012–9, next Bulletin, regarding applications for recognition of exemption, deter-
minations for which § 7428 applies, and conference protest and appeal rights; Notice 2011–43,
2011–25 I.R.B. 882, regarding transitional relief for reinstatement of tax-exempt status and re-
questing retroactive reinstatement for certainsmall organizations under § 6033(j) of the Code;
and Notice 2011–44, 2011–25 I.R.B. 883, regardingapplications for reinstatement of tax-ex-
empt 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(c)(8)
of the Code and section 302(c)(8) 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, s
ee 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 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
onlyde minimisincreases in plan liabilities in accordance with §§ 401(a)(33) and 412(f)(2)(A),
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 un-
funded liability in accordancewith §§ 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. 2012–8).
(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. 2012–6,
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.
SECTION 11. HOW DOES EP
OR EO TECHNICAL HANDLE
LETTER RULING REQUESTS?
In general.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.
Is not bound by informal opinion
expressed
.02 The Service will not be bound by the informal opinion expressed by the group rep-
resentative 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).
Tells taxpayer if request lacks
essential information during
initial contact
.03 If a request for a letter ruling or determination letter does not comply with all the provi-
sions of this revenue procedure, the request will be acknowledged and the Service representa-
tive 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
Sec. 10.02
January 3, 20121502012–1 I.R.B.

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.
Letter ruling request mistakenly
sent to EP or EO Determinations
Processing
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 Pro-
cessing so that the taxpayer can make corrections before sending it to EP or EO Technical.
Requires prompt submission of
additional information requested
after initial contact
.04 Material facts furnished to the Service bytelephone 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 informa-
tion, 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 accor-
dance with the requirements in section 9.02(13)(b) of this revenue procedure. A taxpayer who
submits additional factual information on several occasions may provide one declaration sub-
sequent to all submissions that refers to all submissions.
Encourage use of fax(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 represen-
tative who requests additional information can provide a telephone number to which the in-
formation can be faxed. A copy of this information and a signed perjury statement, however,
must be mailed or delivered to the Service.
Address to send additional
information
(2) Additional information should be sent to the same address as the original letter ruling
request.Seesection 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).
Number of copies of additional
information to be submitted
(3) Generally, a taxpayer needs only to submit one copy of the additional information. How-
ever, in appropriate cases, the Service may request additional copies of the information.
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. Ifthe 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 maybe reopened and treated as a new request. How-
ever, the taxpayer may be required to pay another user fee before the case can be reopened.
Sec. 11.04
2012–1 I.R.B.151January 3, 2012

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
.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.Seesection 10 of Rev. Proc. 2012–8.
May request draft of proposed
letter ruling near the completion
of the ruling process
.06 To accelerate issuance of letter rulings, inappropriate cases nearthe completion of the
ruling process, the Service representative may request that the taxpayer or the taxpayer’s rep-
resentative 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 re-
quests 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.
Taxpayer may also submit draft
on a word processing disk
In addition to a typed draft, taxpayers are encouraged to submit this draft on a disk or CD
Rom in Rich Text Format. The typed draft will become part of the permanent files of the Ser-
vice, and the word processing disk will not be returned. If the Service representative requesting
the draft letter ruling cannot answer specificquestions about the format of the word processing
disk, the questions can be directed to Donzell Littlejohn at (202) 283–9606 (Employee Plans),
or Dave Rifkin at (202) 283–8952 or Matt Perdoni at (202) 283–9924 (Exempt Organizations)
(not toll-free calls).
The proposed letter ruling (both typed draft and word processing disk) 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).Seesection 11.04 of this revenue procedure.
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 statedin 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, atthe 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 adversepositiononanissueinaletterrulingre-
quest, or when the position ultimately adopted byone 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. Ifmore than one subject is to be discussed at the
conference, the discussion will constitute a conference on each subject.
Sec. 11.05
January 3, 20121522012–1 I.R.B.

To have a thorough and informed discussionof 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 ver
batim
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 issuesin 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 grouphas 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.Seesection 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 confer-
ence 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 re-
quested, the identical issue is involved in the taxpayer’s return for an earlier period and that
issue is being examined.Seesection 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
Sec. 12.07
2012–1 I.R.B.153January 3, 2012

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,mustbeused
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 uponas a basis for obtaining retroactive relief
under the provisions of § 7805(b). See also 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§7428or§501or§521
.09 The procedures for requesting a conferencefor 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.
SECTION 13. WHAT EFFECT
WILL A LETTER RULING
HAVE?
May be relied on subject to
limitations
.01 A taxpayer ordinarily may rely on a letterruling 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 letterruling 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—
(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 state-
ment 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 trans-
action 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 furtheraction 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. 2012–5 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 Tech-
nical 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. 2012–5 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
Sec. 12.07
January 3, 20121542012–1 I.R.B.

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 untilany 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, therevocation 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 notmaterially 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 let-
ter 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 ina 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.
Retroactive effect of revocation
or modification applied only to a
particular transaction
.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 applicationofthatletterrulingtothetransactionwill
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.
Sec. 13.06
2012–1 I.R.B.155January 3, 2012

Retroactive effect of revocation
or modification applied to a
continuing action or series of
actions
.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 GovernmentEntities 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.
May be retroactively revoked
or modified when transaction is
completed without reliance on the
letter ruling
.08 A taxpayer is not protected against retroactive revocation or modification of a letter
ruling involving a completed transaction otherthan those described in section 13.07 of this
revenue procedure, because the taxpayer did not enter into the transaction relying on a letter
ruling.
Taxpayer may request that
retroactivity be limited
.09 Under § 7805(b), the Service may prescribe any extent to which a revocation or modi-
fication of a letter ruling or determination letter will be applied without retroactive effect.
A taxpayer to whom a letter ruling or determination letter has been issued may requ
est that
the Commissioner, Tax Exempt and Government Entities Division, limit the retroa
ctive 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 thisrevenue 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
adiscus-
sion 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 Direc-
tor, EP or EO Examinations during an examination of the taxpayer’s return or by an Appeals
Area Director, or the Appeals Area Director, LMSB, during consideration of the taxpayer’s
return before an appeals office, a 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. 2012–5.
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 consideredexhausted until the Service has had a reasonable
time to act upon the request.
Sec. 13.07
January 3, 20121562012–1 I.R.B.

Request for conference(2) Taxpayer may request a conference on application of § 7805(b).
A taxpayer who requests the appl
ication of § 7805(b) in a separate letter ruling request has
the right to a conference in EP o
r 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 ma
de before the conference of right is held on the substantive issues,
the § 7805(b) issue will be dis
cussed at the taxpayer’s one conference of right as explained
in section 12.02 of this reven
ue procedure. If the request for the application of § 7805(b)
relief is made as part of a pend
ing letter ruling request after a conference has been held on
the substantive issue and th
e 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 conferen
ce limited to discussion of this issue only.
SECTION 14. WHAT EFFECT
WILL A DETERMINATION
LETTER HAVE?
Has same effect as a letter ruling.01AdeterminationletterissuedbyEPorEODeterminations 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 doesnot 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 De-
terminations to seek technical advice from EP or EO Technical.Seesection 19 of Rev. Proc.
2012–5.
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.Seesection 18.06 of Rev. Proc. 2012–5. 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 regardingthe 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.Seesection 11 of Rev. Proc. 2012–5.
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
Sec. 14.02
2012–1 I.R.B.157January 3, 2012

§ 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 consideredexhausted 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 determi-
nation 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 wil
l not issue a letter ruling or de-
termination letter, the request will not be forwarded to EP
or EO Technical. EP or EO Determi-
nations 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 pr
ocedure 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 rulingor 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
HEADQUARTERS OFFICE?
Will be made available to the
public
.01 Information letters that are issued by the headquarters office 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 issuedby the field, however, will not be made available
to the public.
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 discu
ssion;
(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.
Sec. 14.02
January 3, 20121582012–1 I.R.B.

Deletions made under the
Freedom of Information Act
.02 Before any information letter is made available to the public, the headquarters office
will delete any name, address, and other identifying information as appropriate under the Free-
dom 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 inspec-
tion under § 6110.
Effect of information letters.03 Information letters are advisory only and have no binding effect on the Service. See
section 3.06 of this revenue procedure. If the headquarters 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.
SECTION 17. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
Rev. Proc. 2011–4 is superseded.
SECTION 18. EFFECTIVE
DATE
This revenue procedure is effective January 3, 2012.
SECTION 19. PAPERWORK
REDUCTION ACT
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 Reduc-
tion 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 collec-
tion 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 esti-
mated average burden of 6.01 hours. The estimated number of respondents and/or recordkeep-
ers 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.
DRAFTING INFORMATIONThe 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 atRetirementPlanQuestions@irs.gov.
For exempt organizations matters, Mr. Dave Rifkin or Mr. Matt Perdoni can be emailed at
tege.eo@irs.gov. Please put “Question about Rev. Proc. 2012–4” in the subject line.
2012–1 I.R.B.159January 3, 2012

INDEX
References are to sections in Rev. Proc. 2012–4
—additionalinformation...................................................................sec.9.02(9),9.03,11.03,11.04
—closingagreement ............................................................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)
—exemptorganization.........................................................................................sec.6.01
—expeditedhandling.......................................................................................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)
—handdelivered............................................................................................... 9.04(1)
—informationletter................................................................................sec.3.06,8.01,15.03
—norule ................................................................................................ sec.8,15.02
—perjurystatement...........................................................................sec.9.02(13),11.04,11.06
—powerofattorney............................................................................... sec.9.02(12),9.03(2)
—reliance.................................................................................sec.3.09,11.02,12.07,13,14
—representatives ........................................................................sec.3.09,9.02(10)-(11),9.03(2)
—retroactive.............................................................................sec.11.02,12.04,12.07,13,14
—revenueruling...............................................................................sec.3.07,13.04,13.09(1)
—section6110.......................................................................................sec.9.02(9),13.02
—status......................................................................................................sec.9.07
—technicaladvice ..........................................................................sec.7.08,13.03,13.09(1),14
—telephone.............................................................................sec.9.02(1),11.04,12.01,12.08
—wheretosend ..............................................................................................sec.9.04
—withdraw ..................................................................................................sec.9.08
January 3, 20121602012–1 I.R.B.

APPENDIX A
SAMPLE FORMAT FOR A LETTER RULING REQUEST
(Insertthedateofrequest)
[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)oftheInternalRevenueCode.
[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. 2012–4, 2012–1 I.R.B. 125. (Hereafter, all
references are to Rev. Proc. 2012–4 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 acomplete statement of the facts relating to the transaction that is the subject of the letter ruling
request. This statement must include a detailed descriptionof 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 pendinglegislation
that may affect the proposed transaction. See sections 9.02(6), 9.02(7), and 9.02(8).]
2012–1 I.R.B.161January 3, 2012

D. ANALYSIS
[The ruling request must contain a discussion of the facts and ananalysis 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. 2012–4 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 byfax, the ruling request shouldcontain 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. 2012–4 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:
SignatureDate
Typed or printed name
of person signing request
DECLARATION: [See section 9.02(13).]
Under penalties of perjury, I declare that I have examined thisrequest, including accompanyingdocuments, 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:
SignatureTitleDate
Typed or printed name of
person signing declaration
January 3, 20121622012–1 I.R.B.

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 authorizedrepresentative) 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 ONEITEM
Yes No N/A1. Does your request involve an issue under the jurisdiction of the Commissioner, Tax Exempt
and Government Entities Division? See section 5 of Rev. Proc. 2012–4, 2012–1 I.R.B. 125, for
issues under the jurisdiction of other offices. (Hereafter, all references are to Rev. Proc. 2012–4
unless otherwise noted.)
Yes No N/A2. 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 responsiblefor 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) 283–9660 (Employee Plans matters), or (202) 283–0289 (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 headquarters office 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 No6. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section
8.03.
Yes No7. Are you requesting the letter ruling for only part of an integrated transaction? See section 8.04.
Yes No8. Have you submitted another letter ruling request for the transaction covered by this request?
Yes No9. 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.
2012–1 I.R.B.163January 3, 2012

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/A11. 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
17. Have you included the required statement of relevant authorities in support of your views?
See section 9.02(6).
Yes No N/A
Pages
18. Does your request discuss the implications ofany legislation, tax treaties, court decisions,
regulations, notices, revenue rulings, or revenueprocedures 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 No21. Is the request accompanied by the deletionsstatement 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/A23. 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’sname 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 Page 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. 2012–8, page 235,
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 ondifferent issues involving one factual situation,
have you included a statement to that effect in each request? See section 9.03(1).
Yes No N/A28. 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 9.03(2).
Yes No N/A
Page
29. If you have more than one representative, have you designated whether the second represen-
tative listed on the power of attorney is to receive a copy of the letter ruling? See section 9.03(2).
January 3, 20121642012–1 I.R.B.

Yes No N/A30. If you want your letter ruling request to be processed ahead of the regular order or by a specific
date,haveyourequestedexpeditedhandlinginthe form required by section 9.03(3) and stated a
compelling need for such action in the request?
Yes No N/A
Page
31. If you want to have a conference on the issuesinvolved in the request, have you included a
request for conference in the ruling request? See section 9.03(5).
Yes No N/A32. If your request is covered by any of the guideline revenue procedures or other special require-
ments listed in section 10 of Rev. Proc. 2012–4, have you complied with all of the requirements
of the applicable revenue procedure?
Yes No N/A
Page
33. 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/A34. 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.
SignatureTitle or authorityDate
Typed or printed name of
person signing checklist
2012–1 I.R.B.165January 3, 2012

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 both of a husband and wife, is the necessary
information with respect to each IRA of each party present?
Note: as long as husband and wife 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 both husband and wife 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, an attorney, or an enrolled actuary, 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 respectto the conversion? For example, if the ruling
request involves a conversion attempted in 1998, there should be a statement of the facts that in-
cludes 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), name(s) of trustees and/or
custodians, and the identification numbers of the traditional IRA(s) present?
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?
January 3, 20121662012–1 I.R.B.

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 plana 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 contribu-
tions? 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 sub-
ject 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 couldspecify this information.
2012–1 I.R.B.167January 3, 2012

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 is controlled by, or associated with, the named church or convention or
association of churches. For example, 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 churchor 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 theorganization 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 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 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 eligibleparticipants are or canbe 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?
January 3, 20121682012–1 I.R.B.

26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2012–5
TABLE OF CONTENTS
SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?
.............................................. 171
SECTION 2. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REV. PROC. 2011–5?............................... 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
.01IssuesunderthejurisdictionoftheCommissioner,TaxExemptandGovernmentEntitiesDivision..................... 173
.02Farmers’cooperatives........................................................................................ 173
.03Basisforrequestingtechnicaladvice........................................................................... 173
.04Areasofmandatorytechnicaladvice .......................................................................... 173
.05BasisforrequestsbyEODeterminations....................................................................... 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 & 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 (Tax Exempt and Government Entities) and the Associate Chief Counsel (Procedure &
Administration) ............................................................................................. 174
.02 Alcohol, tobacco, and firearms taxes........................................................................... 174
.03Excisetaxes ................................................................................................ 174
SECTION 6. MAY A TAM BE REQUESTED FOR A § 301.9100–1 REQUEST DURING THE COURSE OF
AN EXAMINATION?
................................................................................... 174
.01A§301.9100–1requestisaletterrulingrequest................................................................. 174
.02Statuteoflimitations......................................................................................... 174
.03Addresstosenda§301.9100–1request........................................................................ 174
.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 ExemptOrganizations Technical who will notify the
Employee Plans Examinations Area manager or the Exempt Organizations Examinations Area
manager,theappealsofficeorgovernmentcounsel............................................................... 175
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,
orAppealsAreaDirector,determineswhethertorequestaTAM................................................... 175
.02TaxpayermayaskthatissuebereferredforaTAM.............................................................. 175
SECTION 8. WHEN SHOULD A TAM BE REQUESTED?............................................................... 176
.01Uniformityofpositionlacking ................................................................................ 176
.02WhencanaTAMberequested................................................................................ 176
.03Attheearliestpossiblestage.................................................................................. 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
agreetorequesttheconference................................................................................ 176
.02Purposeofpre-submissionconference ......................................................................... 176
.03 Request for pre-submission conference must be submitted in writing by the EP or EO Examinations
ortheEPorEODeterminationsortheappealsoffice............................................................. 177
.04 Group will contact the EP or EO Examinations or the EP or EO Determinations or the appeals office
toarrangethepre-submissionconference....................................................................... 177
.05Pre-submissionconferencegenerallyheldbytelephone .......................................................... 177
2012–1 I.R.B.169January 3, 2012

.06 Certain information required to be submittedto EP or EO Technical prior to the pre-submission
conference.................................................................................................. 177
.07Mannerofsubmittingpre-submissionmaterials ................................................................. 177
.08Pre-submissionconferencemaynotbetaped.................................................................... 177
.09DiscussionofsubstantiveissuesisnotbindingontheService..................................................... 177
SECTION 10. WHAT MUST BE INCLUDED IN THE REQUEST FOR A TAM?............................................ 178
.01Statementofissues,facts,law,andarguments................................................................... 178
.02Generalprovisionsof§§6104and6110oftheInternalRevenueCode............................................. 178
.03Applicationof§6104........................................................................................ 178
.04Statementidentifyinginformationtobedeletedfrompublicinspection............................................. 178
.05TransmittalForm5565,RequestforTechnicalAdvice—EP/EO.................................................. 179
.06Powerofattorney............................................................................................ 179
SECTION 11. HOW ARE REQUESTS HANDLED?.................................................................... 180
.01Taxpayernotified............................................................................................ 180
.02Considerwhetherpublishedguidanceisappropriate ............................................................. 180
.03Conferenceoffered .......................................................................................... 180
.04IfthetaxpayerdisagreeswiththeService’sstatementoffacts .................................................... 180
.05IftheServicedisagreeswiththetaxpayer’sstatementoffacts..................................................... 181
.06Ifthetaxpayerhasnotsubmittedtherequireddeletionsstatement ................................................. 181
.07Criminalorcivilfraudcases.................................................................................. 181
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
.01TaxpayernotifiedofdecisionnottoseekaTAM ................................................................ 182
.02TaxpayermayrequestreviewofdecisionnottoseekaTAM...................................................... 182
.03 EP or EO Examinations Area manager or EP or EO Determinations manager or the applicable
appealsofficedetermineswhetheraTAMwillbesought......................................................... 182
.04Managerorareadirector’sdecisionmaybereviewedbutnotappealed............................................. 182
SECTION 13. HOW ARE REQUESTS FOR TAMs WITHDRAWN?....................................................... 183
.01Taxpayernotified............................................................................................ 183
.02EPorEOTechnicalmayprovideviews ........................................................................ 183
SECTION 14. HOW ARE CONFERENCES SCHEDULED?.............................................................. 183
.01Ifrequested,offeredtothetaxpayerwhenadverseTAMproposed................................................. 183
.02Timeline ................................................................................................... 183
.0321-dayperiodmaybeextendedifjustifiedandapproved......................................................... 183
.04Denialofextensioncannotbeappealed......................................................................... 184
.05Entitledtooneconferenceofright............................................................................. 184
.06Conferencemaynotbetaped ................................................................................. 184
.07Conferencemaybedelayedtoaddressarequestforreliefunder§7805(b) ......................................... 184
.08Servicemakestentativerecommendations...................................................................... 184
.09Additionalconferencesmaybeoffered......................................................................... 185
.10Additionalinformationsubmittedaftertheconference ........................................................... 185
.11Normallyheldbytelephone................................................................................... 185
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
EPorEODeterminationsortheappealsoffice.................................................................. 186
.02 EP or EO Technical will give status updates to the EP or EO Examinations Area manager or the EP
orEODeterminationsofficeortheapplicableAppealsAreaDirector.............................................. 186
SECTION 16. HOW DOES EP OR EO TECHNICAL PREPARE THE TAM?............................................... 186
.01Delegatesauthoritytogroupmanagers......................................................................... 186
.02Determineswhetherrequesthasbeenproperlymade............................................................. 186
.03 Contacts the EP or EO Examinations or the EP or EO Determinations or the appeals office to discuss
issues ...................................................................................................... 186
January 3, 20121702012–1 I.R.B.

.04 Informs the EP or EO Examinations or the EP or EO Determinations or the appeals office if any
mattersintherequesthavebeenreferredtoanothergrouporoffice................................................ 186
.05 Informs the EP or EO Examinations or the EP or EO Determinations or the appeals office if
additionalinformationisneeded............................................................................... 187
.06 Informs the EP or EO Examinations or the EP or EO Determinations or the appeals office of the
tentativeconclusion.......................................................................................... 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
tentativeconclusionisnotfinal................................................................................ 187
.09 Advises the EP or EO Examinations or the EP or EO Determinations or the appeals office of final
conclusions................................................................................................. 187
.10Ifneeded,requestsadditionalinformation ...................................................................... 187
.11 Requests taxpayer to send additional information to EP or EO Technical and a copy to the EP or EO
ExaminationsortheEPorEODeterminationsortheappealsoffice................................................ 188
.12Informsthetaxpayerwhenrequesteddeletionswillnotbemade................................................... 188
.13Preparesreplyintwoparts.................................................................................... 188
.14Routesrepliestoappropriateoffice............................................................................ 189
SECTION 17. HOW DOES EP OR EO EXAMINATIONS OR EP OR EO DETERMINATIONS OR AN
APPEALS OFFICE USE THE TAM?
..................................................................... 190
.01Generallyappliesadviceinprocessingthetaxpayer’scase........................................................ 190
.02Reconsideration............................................................................................. 190
.03Discussionwiththetaxpayer.................................................................................. 190
.04Givescopytothetaxpayer.................................................................................... 190
.05Taxpayermayprotestdeletionsnotmade....................................................................... 191
.06Whennocopyisgiventothetaxpayer......................................................................... 191
SECTION 18. WHAT IS THE EFFECT OF A TAM?.................................................................... 191
.01AppliesonlytothetaxpayerforwhomTAMwasrequested....................................................... 191
.02Usuallyappliesretroactively.................................................................................. 191
.03 Generally applied retroactively to modify or revoke pri
orTAM .................................
.................. 191
.04 Applies to continuing action or series of actions until s
pecifically withdrawn, modified, or revoked. .
.................. 191
.05 Applies to continuing action or series of actions until m
aterialfactschange.......................
.................. 191
.06Doesnotapplyretroactivelyundercertainconditions............................................................ 191
SECTION 19. HOW MAY RETROACTIVE EFFECT BE LIMITED?...................................................... 192
.01Commissionerhasdiscretionaryauthorityunder§7805(b) ....................................................... 192
.02TaxpayermayrequestCommissionertoexerciseauthority........................................................ 192
.03Formofrequesttolimitretroactivity—beforeanexamination..................................................... 192
.04Formofrequesttolimitretroactivity—duringcourseofexamination ............................................. 192
.05 Form of request to limit retroactivity—technical advice that does not modify or revoke prior
memorandum ............................................................................................... 193
.06Taxpayer’srighttoaconference............................................................................... 193
.07Exhaustionofadministrativeremedies—employeeplansdeterminationletterrequests.............................. 193
.08Exhaustionofadministrativeremedies—exemptorganizationmatters............................................. 193
SECTION 20. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?...................... 193
SECTION 21. EFFECTIVE DATE................................................................................... 193
SECTION 22. PAPERWORK REDUCTION ACT....................................................................... 193
INDEX........................................................................................................... 195
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 manager, an
Employee Plans (EP) Determinations manager,an Exempt Organizations (EO) Determinations
manager, or an Appeals Area Director in the employee plans areas (including actuarial mat-
ters) and exempt organizations areas. It also explains the rights a taxpayer has when an EP or
Sec. 1
2012–1 I.R.B.171January 3, 2012

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 Serviceinvolved in an examination where EP Technical
does not have audit jurisdiction but has interpretive jurisdiction as enumerated in section 6.02
of Rev. Proc. 2012–4 of this Bulletin.
.02 Although taxpayer participation during allstages 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. 2011–5?
This revenue procedure is a general update of Rev. Proc. 2011–5, 2011–1 I.R.B. 167, which
contains the general proceduresfor technical advice requests for matters within the jurisdiction
of the Commissioner, Tax Exempt and Government Entities Division.
Section 4.04 has been revised to provide that requests for abatements of more than $200,000
in all Exempt Organizationsmatters are mandatory TAMs.
SECTION 3. WHAT IS THE
DEFINITION OF TECHNICAL
ADVICE?
“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 orprocedural 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 headquar-
ters office to a specific set offacts. (The references in thisrevenue procedure to an Appeals
Area Director or an appeals office include, when appropriate, an Appeals Area Director, LB&I,
a Deputy Appeals Area Director, LB&I, a Deputy Appeals Area Director, an Appeals Team
Manager and include in employee plans matters another Operating Division of the Service
described in the last sentence of section 1.01 above.) Such proceedingsinclude: (1) the exam-
ination 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 of-
fice; or (5) processing and considering nondocketed cases of a taxpayer in an appeals office.
However, they do not include cases in which theissue 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
issuefederally subsidized bonds such as tax-exempt bonds, tax credit bonds or build Amer-
ica bonds), and when appropriate, their representatives. However, the instructions and the
provisions 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 or-
ganizations or to mortgage creditcertificates. Instead, in those instances the procedures under
Rev. Proc. 2012–2 of this Bulletin must be followed.
TAMs help Service personnel resolve complex issues and help establish and maintain con-
sistent holdings throughout the Internal Revenue Service. An EP or EO Examinations, an EP
or EO Determinations or an appeals office mayraise an issue in any tax period, even though
technical advice may have been requested and furnished for the same or similar issue for an-
other 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 accordancewith section 12.01 of this revenue procedure,
a taxpayer’s request for referral of an issue to the headquarters officefor 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.
Sec. 1
January 3, 20121722012–1 I.R.B.

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
MAYORMUSTTAMsBE
REQUESTEDUNDERTHIS
PROCEDURE?
Issues under the jurisdiction of
the Commissioner, Tax Exempt
and Government Entities Division
.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
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. 2012–9, the next Bulletin, as well as
§ 601.201(n) of the Statement of Procedural Rules (26 CFR § 601.201(n) (2007)), 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 organiza-
tions and employee plans matters.
Regarding exempt organizations matters,EO Examinations, EO Determinations and ap-
peals offices are required to request a TAM ontheir 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. 2012–9, 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 re-
voke or modify (1) a letter ruling found to be in error or not in accord with the current views
of the Service, or (2) a letter recognizing tax-exempt status issued by the headquarters office.
Regarding employee plans matters, a request for a TAM is required in cases concerning (1)
proposed adverse or proposed revocation letterson 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. 2012–6 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
2012–9, 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 2012–4, section 7.04, except (1), (2), and (6).
Sec. 4.05
2012–1 I.R.B.173January 3, 2012

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, and (7)
issues involving the interpretation or application of the federal income tax laws and income
tax treaties relating to international transactions are contained in Rev. Proc. 2012–2.
Alcohol, tobacco, and firearms
taxes
.02 The procedures for obtaining a TAMspecifically applicable to federal a
lcohol, tobacco,
and firearms taxes under subtitle E of the Code are currently under the juris
diction of the Al-
cohol and Tobacco Tax and Trade Bureauwithin 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. 2012–2.
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 anelection 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. 2012–4 of this Bulletin (including the payment of the
applicable user fee listed in section 6 of Rev. Proc. 2012–8).
Statute of limitations.02 The running of any applicable period of limitations is not suspended for the period dur-
ing 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 theperiod of limitations on assessment. Note
that the filing of a protective claim for refund under § 6511 does not extend the period of lim-
itations 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. 2012–4, together with the
appropriate user fee, must be submitted to the Internal Revenue Service by the taxpayer and
addressed as follows:
Requests involvingemployee plansmatters:
Sec. 5
January 3, 20121742012–1 I.R.B.

Internal Revenue Service
Commissioner, Tax Exempt and Government Entities
Attn: SE:T:EP:RA
P. O. Box 27063
McPherson Station
Washington, DC 20038
Requests involvingexempt organizationmatters:
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.SeeRev. Proc. 2012–8 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, DC 20224
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
.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. 2012–4. EP or EO Technical will notify
the appropriate EP or EO Examinations Area manager or Appeals Area Director or govern-
ment 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 con-
sideration 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.
SECTION 7. WHO IS
RESPONSIBLE FOR
REQUESTING TAMs?
EP or EO Examinations
AreamanagerorEPorEO
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 connection with a waiver of
the minimum funding standard and a request fora determination letter, is treated as if it had
been a request for technical advice submitted bythe EP Determinations manager. See section
15 of Rev. Proc. 2012–6 and section 3.04 of Rev. Proc. 2004–15 for the procedural rules
applicable to this particular mandatory technical advice.
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 Determina-
tions, or an Appeals Area Director, a taxpayer may request that an issue be referred to the EP
or EO Technical office for a TAM.
Sec. 7.02
2012–1 I.R.B.175January 3, 2012

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 consideration 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 Determina-
tions 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 Determi-
nations 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 Determi-
nations 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.
Attheearliestpossiblestage.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 israised late in the examination, determination
or appeals process should not influence, however, EP or EO Examinations’, EP or EO Deter-
minations’ or an Appeals Area Director’s, decision to request a TAM.
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 Tech-
nical 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 tech-
nical advice is formally submitted to EP or EO Technical. In all cases, other than mandatory
TAMswhicharedescribedinsection4.04,apre-submission conference is mandatory.
A request for a pre-submission conferenceshould be made, however, only after the EP or
EO Examinations or the EP or EO Determinationsor the appeals office determines that it will
likely request a TAM.
If the request for a TAM wi
ll involve more than one function, representatives from each
function involved must p
articipate in the pre-submission conference.
Purpose of pre-submission
conference
.02 A pre-submission conference is intended tofacilitate 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 expe-
ditiously as possible.
Sec. 8
January 3, 20121762012–1 I.R.B.

A pre-submission conference is not intendedto 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.
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
.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) inthe 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 conferencesfor 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 in-
formed 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 en-
sure that the EP or EO Technical office receives acopy of any required power of attorney, on
Form 2848,Power of Attorney and Declaration of Representative.
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-submis-
sion 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 privatedelivery service to the tax law specialist or
actuary in Headquarters assigned to the request. In such cases, the appropriate provisions of
section 10.05 should be followed.
Pre-submission conference may
not be taped
.08 Because pre-submission conference procedures are informal, 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, and cannot be relied upon as a basis for obtaining retroactive relief
under the provisions of § 7805(b). Seealso Rev. Proc. 2012–4, section 3.08.
Sec. 9.09
2012–1 I.R.B.177January 3, 2012

SECTION 10. WHAT MUST BE
INCLUDED IN THE REQUEST
FOR A TAM?
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
aTAM
(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 theTAM 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 Exami-
nations 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 tax-
payer 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 in-
spection 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. Gen-
erally, § 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.
Sec. 10
January 3, 20121782012–1 I.R.B.

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 ofthe TAM request and supporting documents on
which the taxpayer should bracket the material to be deleted. In addition, the deletions state-
ment 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 (astamped 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 (in-
cluding another Operating Division of the Service involved in an examination where EP Tech-
nical does not have audit jurisdiction but has interpretive jurisdiction as enumerated in section
6.02 of Rev. Proc. 2012–4) 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 toWilliam.Hulteng@irs.govfor EP matters andtege.eo@irs.govfor 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 additionaldocuments that are not available in electronic
form by fax to 202–283–9654 for EP matters, or 202–283–8858 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. Docu-
ments 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 TAM Coordinator in the Office of Tax Policy & Valuation.
Power of attorney.06 Any authorized representative, as described in section 9.02 of Rev. Proc. 2012–4,
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
Sec. 10.06
2012–1 I.R.B.179January 3, 2012

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 acopy 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 pro-
cedure.
Consider whether published
guidance is appropriate
.02 Whenever the assigned reviewer suspects that general guidance should be published
regarding the issue presented, the reviewerwill 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 Examinations
or the EP or EO Determinations or the appeals office will notify the taxpayer in writing. Within
10 calendar days after receivingthe 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
aTAM.
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 Tech-
nical 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.
Sec. 10.06
January 3, 20121802012–1 I.R.B.

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 subjectto 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 Determina-
tions or the Appeals Area Director will ask the taxpayer to submit the statement. If EP or EO
Examinations or EP or EO Determinations orthe Appeals Area Director does not receive the
deletions statement within 10 calendar days after asking the taxpayer for it, EP or EO Exam-
inations 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 Exami-
nations 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 Commissionerof 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, ob-
taining 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 orEO 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 in-
vestigations or assessments are complete, butbefore the Service mails the notice of intention
to disclose the TAM under § 6110(f)(1). The taxpayer may then provide the statement of pro-
posed deletions to EP or EO Technical.
Sec. 11.07
2012–1 I.R.B.181January 3, 2012

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
ap-
peals office not to request a TAM in all instances. To do so, the taxpayer must subm
it 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 be
lieves the
matter should be referred to EP or EO Technical for a TAM. A taxpayer who needs mo
re than
10 calendar days must justify in writing the request for an extension of time. T
he extension is
subject to the approval of the EP or EO Examinations Area manager or the EP or EO D
etermi-
nations manager or the appropriate appeals office.
EP or EO Examinations
AreamanagerorEPorEO
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 theproposed denial.
Manager or area director’s
decision may be reviewed but not
appealed
.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 taxpayerdoes 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 or the Appeals Director Tax Policy & Procedure (Exam), as appropriate.
The Commissioner, Tax Exempt and Government Entities Division through the Director,
Employee Plans, or the Director, Exempt Organizations or, if appropriate, the Appeals Direc-
tor Tax Policy & 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 representa-
tive. 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 re-
quest for a TAM continue to be applicable in those situations in which the authority normally
Sec. 12
January 3, 20121822012–1 I.R.B.

exercised by the EP or EO Examinations Areamanager, the EP or EO Determinations man-
ager, or the Appeals Area Director has been delegated to another official.
SECTION 13. HOW ARE
REQUESTS FOR TAMS
WITHDRAWN?
Taxpayer notified.01 Once a request for a TAM has been sent to EP or EO Technical, only an EP or EO Ex-
aminations 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 with-
draw 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 reque
st for a TAM should be withdrawn, the proce-
dures in section 12 of this revenue procedur
e must be followed.
EP or EO Technical may provide
views
.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 to the appropriate appeals office, through the Director,
Technical Services, C:AP. In appropriate cases, the subject matter may be published as a rev-
enue 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 tax-
payer, 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 op-
portunity 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 Deter-
minations manager, or the Appeals Area Director may designate other Service representatives
to participate in the conference in lieu of, or inaddition to, the EP or EO specialist or the ap-
peals 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 writ-
ing, 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 authorizedrepresentative) 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
Sec. 14.03
2012–1 I.R.B.183January 3, 2012

Technical to consider, and either approve or deny, the request before the end of the 21-day
period. If unusual circumstances near the endof the period make a timely written request
impractical, the taxpayer (or anauthorized representative) should orally inform the assigned
tax law specialist or actuary before the end ofthe 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 onlyone 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 authorityto 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.
Conference may not be taped.06 Because conference procedures are informal, no tape, stenographic, or other verbatim
recording of a conference may be made by any party.
Conference may be delayed to
address a request for relief under
§ 7805(b)
.07 In the event of a tentative adverse determination, the taxpayer may request in writing
a delay of the conference so that the taxpayercan prepare and submit a brief requesting re-
lief 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.Seesection 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 inquestion. 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 regard-
ing any issue, including the outcome of the § 7805(b) request for relief. See also Rev. Proc.
2012–4, section 3.08.
Sec. 14.03
January 3, 20121842012–1 I.R.B.

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 pre-
vent 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 thecase 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 con-
ference, including a conferencewith an official higher than the group level. Section 14.02 of
this revenue procedure also provides that other Service representatives are allowed to partici-
pate 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., thatthe taxpayer proposed
and discussed at the conference but did not previously or adequately present in writing. This
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 com-
ments, 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 Ap-
peals Area Director for comments on the facts contained in the additional information submit-
ted. 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 ratherthan a telephone conference.
In accordance with section 14.02 of this revenue procedure, the EP or EO specialist or ap-
peals 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.
Sec. 14.11
2012–1 I.R.B.185January 3, 2012

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 Determi-
nations 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 rep-
resentative. 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 or EP or EO
Determinations or 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.
Seesection 16.09 of this revenue procedure about discussing the final conclusions with the
EP or EO Examinations office or the EP or EO Determinations officeor the appeals office.
Further, the EP or EO Examinations office or the EP or EO Determinations office or the Ap-
peals 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 & 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 & Agreements Technical groups and theTechnical 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, thetax 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 offi
ce
if any matters in the request hav
e
been referred to another group o
r
office
.04 If the technical advice requ
est concerns matters within the jurisdiction of more than one
group or office, a representati
ve of the group that received the original technical advice request
generally informs the EP or EO Ex
aminations office or the EP or EO Determinations office or
the appeals office within 21 cal
endar days of receiving the request that:
(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
Sec. 15
January 3, 20121862012–1 I.R.B.

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 addi-
tional information is required to resolve an issue. Cases also should be returned for additional
information when significant unresolved factual variances exist between the statement 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 shouldalso be returned if major procedural problems
cannot be resolved by telephone. The EP or EO Examinations office or the EP or EO Deter-
minations 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 mannerwithout 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
.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
office or the appeals office of the estimated date the tentative conclusion will be made.
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 prepara-
tion 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 Deter-
minations or the appeals office should advise the taxpayer or the taxpayer’s representative of
the tentative conclusion beforethe scheduling of the adverse conference or between the sched-
uling 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 conclu-
sions before the TAM is issued.
If needed, requests additional
information
.10 If, following the initial contact referencedin 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 expeditiousmanner 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 precau-
tions to protect confidential information. For example, the Service will use a cover sheet that
identifies the intended recipient of the fax andthe number of pages transmitted, that does not
identify the taxpayer by name or tax identifying number and that contains a statement prohibit-
ing unauthorized disclosure of the document if a recipient of the faxed document is not the
Sec. 16.10
2012–1 I.R.B.187January 3, 2012

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 infor-
mation 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 circum-
stances 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 headquarters office. 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 o
r
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 requestis 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;
Sec. 16.10
January 3, 20121882012–1 I.R.B.

(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 underlyingthe 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 officeor 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 issuesto 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 dis-
close the TAM (including a copy of the versionproposed 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 Examina-
tions 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 examination
where EP Technical does not have audit jurisdiction but has interpretive jurisdiction as enu-
meratedinsection6.02ofRev.Proc. 2012–4, 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 thatcopies are forwarded to the applicable man-
ager.
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
Sec. 16.14
2012–1 I.R.B.189January 3, 2012

Replies to requests for TAMs from the Appeals Area Director are routed back to the appro-
priate Appeals Area Director.
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 Examina-
tions or EP or EO Determinations must followthe 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 organi-
zation/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 Headquarters office 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 Examina-
tions office or the EP or EO Determinations office or the appeals office.
Givescopytothetaxpayer.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 proce-
dure, or documents to which § 6104 (document open to public inspection) applies, as described
in section 10.03.
Sec. 16.14
January 3, 20121902012–1 I.R.B.

Taxpayer may protest deletions
not made
.05 After receiving the notice under § 6110(f)(1) of intention to disclose the TAM, the tax-
payer 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 20calendar 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 Deter-
minations 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 author-
ity 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 aseries 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 revoca
tion of a TAM
involving a continuing action or a series of actions occurring after the ma
terial facts on which
the TAM is based have changed.
Does not apply retroactively under
certain conditions
.06 Generally, a TAM that modifies or revokesa letter ruling or another TAM or a determi-
nation 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 notmaterially 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;
Sec. 18.06
2012–1 I.R.B.191January 3, 2012

(4) in the case of a letter ruling, it was originally issued on a prospective or proposed trans-
action; 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 ordetermination 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, thenotice 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 determina-
tion 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 gener-
ally must request relief under § 7805(b) inthe 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 TAMwill 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 Commissioner 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 ex-
ample, 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 let-
ter 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. 2012–4.
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 Exam-
inations 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.
Sec. 18.06
January 3, 20121922012–1 I.R.B.

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 Technicalin accordance with the provisions of section
14 of this revenue procedure.
If the request for application of § 7805(b) is included in the request for a TAM on th
e sub-
stantive issues or is made before the conference of right on the substantive issue
s, 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.
Exhaustion of administrative
remedies — employee plans
determination letter requests
.07 Where the applicant has requested EP Determinations to seek a TAM on the applica-
bility 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. 2012–6.
Exhaustion of administrative
remedies — exempt organization
matters
.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 mean-
ing 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 reasonable time to act
on the request for a TAM.
SECTION 20. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
Rev. Proc. 2011–5 is superseded.
SECTION 21. EFFECTIVE
DATE
This revenue procedure is effective January 3, 2012.
SECTION 22. PAPERWORK
REDUCTION ACT
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 Reduc-
tion 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 collec-
tion 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.
Sec. 22
2012–1 I.R.B.193January 3, 2012

The estimated annual burden per respondent/recordkeeper varies from 4 hours to 60 hours,
depending on individual circumstances, withan estimated average of 19.5 hours. The esti-
mated 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 INFORMATIONThe 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 atRetirementPlanQuestions@irs.gov. For exempt organizations matters, please
email Mr. Dave Rifkin or Mr. Matt Perdoni attege.eo@irs.gov. Please put “Question about
Rev. Proc. 2012–5” in the subject line.
Sec. 22
January 3, 20121942012–1 I.R.B.

INDEX
References are to sections in Rev. Proc. 2012–5
Additional Information
—procedureforsubmission...................................................................sections16.02,16.05,16.10
afterconference ....................................................................................section14.10
—proposeddeletionsunder§6110..........................................................................section10.04
Chief Counsel
—jurisdiction..............................................................................................section5.01
Conferences
—offered ...................................................................................sections11.03,14.01,14.09
exceptions ............................................................................sections11.05,12.04,16.12
—pre-submission.............................................................................................section9
—scheduling................................................................................................section14
requesttolimitretroactivity.............................................................sections14.07,14.08,19.06
telephoneconferences...............................................................................section14.11
Definitions
—technicaladvicememorandum ...............................................................................section3
Extension of Time
—toappealdecisionnottorequest..........................................................................section12.02
—todisagreewithstatementoffacts .................................................................sections11.04,11.05
—toscheduleconference ...........................................................................sections14.03,14.05
—tosubmitadditionalinformation...................................................................sections14.10,16.10
Farmers’ Cooperatives...............................................................................sections4.02,5.01
Letter Ruling.............................................................................................section18.06
Mandatory Technical Advice.........................................................................sections4.04,7.01
Paperwork Reduction Act....................................................................................section22
Perjury Statement.................................................................................sections14.10,16.10
Power of Attorney........................................................................................section10.06
Public Disclosure under § 6110
—deletionstatementrequired...............................................................................section10.04
exceptionwhen§6104applies .......................................................................section10.03
failuretosubmit....................................................................................section11.06
—noticeofintentiontodisclose ............................................................................section17.04
protestingdeletionsnotmade..................................................................sections16.12,17.05
Representatives....................................................................................sections14.08,16.10
Retroactive Effect
—ingeneral.........................................................................................sections18.02–.06
onletterruling......................................................................................section18.06
—requesttolimitretroactivity.................................................................................section19
employeeplansdeterminationletters..................................................................section19.07
exemptorganizationmatters..........................................................................section19.08
formatofrequest.............................................................................sections19.03,19.04
schedulingconference..................................................................sections14.07,14.09,19.06
2012–1 I.R.B.195January 3, 2012

INDEX
References are to sections in Rev. Proc. 2012–5
Revenue Rulings
—effectoncontinuingtransaction....................................................................sections18.04,18.05
requesttolimitretroactivity.....................................................................sections19.01–.05
Section 301.9100–1 Relief.....................................................................................section6
Status of TAM
—toEPorEOExaminationsAreaorEPorEODeterminationsorappealsoffice ..................................section15.02
—totaxpayer.............................................................................................section15.01
Where to Send
—additionalinformation...................................................................................section16.10
—technicaladvicerequestfromappealsoffice................................................................section10.05
— technical advice request from EP or EO Examinations or EP or EO
Determinations.........................................................................................section10.05
Withdrawal of TAM.........................................................................................section13
January 3, 20121962012–1 I.R.B.

26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2012–6
TABLE OF CONTENTS
SECTION 1. WHAT IS THE PURPOSE OF THI
S REVENUE PROCEDURE?
...........................
.................. 200
.01Purposeofrevenueprocedure ................................................................................ 200
.02 Organization of revenue proce
dure ..........................................................
.................. 200
SECTION 2. WHAT CHANGES HAVE BEEN MADE TO THIS PROCEDURE?............................................ 200
.01Ingeneral .................................................................................................. 200
.02Otherchanges .............................................................................................. 200
.03Otherguidance ............................................................................................. 201
PART I. PROCEDURES FOR DETERMINATION LETTER REQUESTS
SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER THIS
PROCEDURE?
........................................................................................ 201
.01Typesofrequests ........................................................................................... 201
.02Areasinwhichdeterminationletterswillnotbeissued .......................................................... 202
.03Submissionperiodforapplications ............................................................................ 203
SECTION 4. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER DIFFERENT
PROCEDURES?
....................................................................................... 203
.01TaxExemptandGovernmentEntities.......................................................................... 203
.02ChiefCounsel’srevenueprocedure............................................................................ 203
SECTION 5. WHAT IS THE GENERAL SCOPE OF A DETERMINATION LETTER?...................................... 204
.01Scopeofthissection ........................................................................................ 204
.02Scopeofdeterminationletters ................................................................................ 204
.03Nondiscriminationinamountrequirement ..................................................................... 204
.04Governmentalplansunder§414(d)............................................................................ 204
.05Churchplansunder§414(e).................................................................................. 204
.06Taxtreatmentofcertaincontributionsof§414(h) ............................................................... 204
.07Otherlimitsonscopeofdeterminationletter.................................................................... 204
.08Affiliatedservicegroups,leasedemployeesandpartialterminations .............................................. 204
.09Publication794 ............................................................................................. 205
SECTION 6. WHAT IS THE GENERAL PROCEDURE FOR REQUESTING DETERMINATION LETTERS?.................. 205
.01Scope...................................................................................................... 205
.02Qualifiedtrusteedplans...................................................................................... 205
.03Qualifiednontrusteedannuityplans ........................................................................... 205
.04Completeinformationrequired ............................................................................... 205
.05Completecopyofplanandtrustinstrumentrequired ............................................................ 205
.06Section9ofRev.Proc.2012–4applies......................................................................... 205
.07 Separate application for each single § 414(l) plan................................................................ 205
.08Priorletters................................................................................................. 205
.09Userfees................................................................................................... 206
.10Interestedpartynotificationandcomment...................................................................... 206
.11Contraryauthoritymustbedistinguished....................................................................... 206
.12Employer/employeerelationship .............................................................................. 206
.13Incompleteapplicationsreturned.............................................................................. 206
.14Effectoffailuretodisclosematerialfact........................................................................ 206
.15Wheretofilerequests ....................................................................................... 207
.16Submissionofrelatedplans................................................................................... 207
.17Withdrawalofrequests....................................................................................... 207
.18Righttostatusconference .................................................................................... 207
.19Howtorequeststatusconference ............................................................................. 207
2012–1 I.R.B.197January 3, 2012

SECTION 7. INITIAL QUALIFICATION, ETC......................................................................... 208
.01Scope...................................................................................................... 208
.02Forms ..................................................................................................... 208
.03Timing..................................................................................................... 208
.04Applicationmustincludecopyofplanandamendments ......................................................... 209
.05Restatementsrequired ....................................................................................... 209
.06Controlledgroup,etc......................................................................................... 209
.07§414(x)combinedplans ..................................................................................... 209
SECTION 8. EMPLOYER RELIANCE ON M&P AND VOLUME SUBMITTER PLANS.................................... 209
.01Scope...................................................................................................... 209
.02ModificationstoRevenueProcedure2011–49................................................................... 209
.03Relianceequivalenttodeterminationletter...................................................................... 210
SECTION 9
. DETERMINATION LETTER FILING PROCEDURES FOR M&P AND VOLUME SUBMITTER
PLANS
............................................................................................... 210
.01 Scope
....................................................................................
.................. 210
.02 Deter
minationletterforadoptionofvolumesubmitterplan.....................................
.................. 210
SECTION 10. MULTIPLE EMPLOYER PLANS....................................................................... 211
.01Scope...................................................................................................... 211
.02Optionstofilefortheplanonlyorforboththeplanandemployersmaintainingtheplan............................. 211
.03Wheretofile ............................................................................................... 212
.04 Determination letter sent to each employer who files Form 5300.................................................. 212
.05Additionofemployers ....................................................................................... 212
SECTION 11. AMENDMENTS...................................................................................... 212
SECTION 12. TERMINATION OR DISCONTINUANCE OF CONTRIBUTIONS; NOTICE OF MERGERS,
CONSOLIDATIONS, ETC.
.............................................................................. 212
.01Scope...................................................................................................... 212
.02Forms ..................................................................................................... 212
.03Supplementalinformation.................................................................................... 213
.04CompliancewithTitleIVofERISA ........................................................................... 213
.05Terminationpriortotimeforamendingforchangeinlaw ........................................................ 213
.06Restatementnotrequiredforterminatingplan .................................................................. 213
SECTION 13. GROUP TRUSTS..................................................................................... 213
.01Scope...................................................................................................... 213
.02Requiredinformation ........................................................................................ 213
.03Forms...................................................................................................... 214
SECTION 14. AFFILIATED SERVICE GROUPS; LEASED EMPLOYEES................................................ 214
.01Scope...................................................................................................... 214
.02Employermustrequestthedeterminationunder§414(m)or§414(n).............................................. 214
.03Forms...................................................................................................... 214
.04Employerisresponsiblefordeterminingstatusunder§414(m)and§414(n)........................................ 214
.05Pre-approvedplans .......................................................................................... 214
.06Requiredinformationfor§414(m)determination ............................................................... 215
.07Requiredinformationfor§414(n)determination................................................................ 215
SECTION 15. WAIVER OF MINIMUM FUNDING.................................................................... 216
.01Scope...................................................................................................... 216
.02ApplicabilityofRev.Proc.2004–15 .......................................................................... 216
.03WaiverrequestsubmittedtoEPTechnical...................................................................... 216
.04WaiveranddeterminationletterrequestsubmittedtoEPTechnical ................................................ 216
.05Handlingoftherequest ...................................................................................... 217
.06Whenwaiverrequestshouldbesubmitted...................................................................... 217
SECTION 16. SECTION 401(h) AND § 420 DETERMINATION LETTERS................................................ 217
January 3, 20121982012–1 I.R.B.

.01Scope...................................................................................................... 217
.02Requiredinformationfor§401(h)determination................................................................ 218
.03Requiredinformationfor§420determination .................................................................. 218
PART II. INTERESTED PARTY NOTICE AND COMMENT
SECTION 17. WHAT RIGHTS TO NOTICE AND COMMENT DO INTERESTED PARTIES HAVE?......................... 219
.01Rightsofinterestedparties ................................................................................... 219
.02Commentsbyinterestedparties ............................................................................... 219
.03RequestsforDOLtosubmitcomments ........................................................................ 220
.04RighttocommentifDOLdeclinestocomment ................................................................. 221
.05Confidentialityofcomments ................................................................................. 221
.06Availabilityofcomments .................................................................................... 221
.07Whencommentsaredeemedmade ............................................................................ 221
SECTION 18. WHAT ARE THE GENERAL RULES FOR NOTICE TO INTERESTED PARTIES?............................ 221
.01Noticetointerestedparties ................................................................................... 221
.02Timewhennoticemustbegiven .............................................................................. 221
.03Contentofnotice............................................................................................ 221
.04Proceduresformakinginformationavailabletointerestedparties ................................................. 222
.05Informationtobeavailabletointerestedparties ................................................................. 222
.06Specialrulesiftherearefewerthan26participants.............................................................. 222
.07Informationdescribedin§6104(a)(1)(D)shouldnotbeincluded.................................................. 223
.08Availabilityofadditionalinformationtointerestedparties........................................................ 223
.09Availabilityofnoticetointerestedparties....................................................................... 223
PART III. PROCESSING DETERMINATION LETTER REQUESTS
SECTION 19. HOW DOES THE SERVICE HANDLE DETERMINATION LETTER REQUESTS............................. 224
.01Oraladvice................................................................................................. 224
.02Conferences ................................................................................................ 224
.03Determinationletterbasedsolelyonadministrativerecord ....................................................... 224
.04Noticeoffinaldetermination ................................................................................. 225
.05Issuanceofthenoticeoffinaldetermination.................................................................... 225
SECTION 20. EXHAUSTION OF ADMINISTRATIVE REMEDIES....................................................... 225
.01Ingeneral .................................................................................................. 225
.02Stepsforexhaustingadministrativeremedies ................................................................... 225
.03Applicant’srequestfor§7805(b)relief......................................................................... 225
.04Interestedparties............................................................................................ 226
.05Deemedexhaustionofadministrativeremedies ................................................................. 226
.06Servicemustactonappeal ................................................................................... 226
.07Servicemustacton§7805(b)request.......................................................................... 226
.08Effectoftechnicaladvicerequest ............................................................................. 226
SECTION 21. WHAT EFFECT WILL AN EMPLOYEE PLAN DETERMINATION LETTER HAVE?......................... 226
.01Scopeofrelianceondeterminationletter....................................................................... 226
.02Sections13and14ofRev.Proc.2011–4applicable ............................................................. 226
.03Effectofsubsequentpublicationofrevenueruling,etc. .......................................................... 226
.04Determinationletterdoesnotapplytotaxabilityissues .......................................................... 227
SECTION 22. EFFECT ON OTHER REVENUE PROCEDURES......................................................... 227
SECTION 23. EFFECTIVE DATE................................................................................... 227
DRAFTING INFORMATION........................................................................................ 227
EXHIBIT......................................................................................................... 228
APPENDIX §§ 401(h) AND 420 DETERMINATION LETTERS........................................................... 230
2012–1 I.R.B.199January 3, 2012

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, an-
nuity, 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 modi-
fied by Rev. Proc. 2008–56, 2008–2 C.B. 826, and Rev. Proc. 2009–36, 2009–35 I.R.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.
This revenue procedure is effective February 1, 2012, for plans under the 5-year remedial
amendment cycle (other than terminating plans), and effective May 1, 2012, for terminating
plans and for plans under the 6-year remedial amendment cycle.
Organization of revenue
procedure
.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 concerningthe 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. 2011–6, 2011–1 I.R.B 195,
which contains the Service’s general proceduresfor employee plans determination letter re-
quests.
Other changes.02 This revenue procedure incorporates the changes to the determination letter program
described in Announcement 2011–82, 2011–52 I.R.B. 1052. The determination letter program
is modified to (1) eliminate the option of plan sponsors to request a determination relating to
minimum participation, coverage, and nondiscrimination requirements of the Internal Revenue
Code in conjunction with an application for a determination letter, and (2) limit the ability
to file a Form 5307,Application for Determination for Adopters of Master or Prototype or
Volume Submitter Plans, to adopters of certain VS plans who modify the terms of an approved
specimen plan. These changes are reflected throughout this revenue procedure. In addition to
minor revisions, such as updating references, the following changes have been made:
(1) Section 5.04 provides that a plan will not be reviewed for and a determination letter does
not constitute a ruling or determination as towhether the plan is a governmental plan under
§ 414(d).
(2) Section 5.05 provides that 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 under § 414(e).
(3) Section 5.06 provides that 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).
(4) Section 6.04 clarif
ies that an applicant must include EPCRS documentation, if any, with
a determination letter
application.
(5) Section 6.08 relating to prior letters, is modified to require that when the submitted plan
is the result of a merger between two or more plans, certain requirements are applied to each
underlying plan.
Sec. 1
January 3, 20122002012–1 I.R.B.

(6) Section 7.01 is revised to clarify the circumstances under which a determination letter
can be requested.
(7) Section 7.04 is revised to clarify that an application should include all interim and other
plan amendments adopted since the submissionof the most recent determination letter appli-
cation.
(8) Section 8.02 modifes Rev. Proc. 2011–49.
(9) Section 13.03, is revised to include Form 5316,Application for Group or Pooled Trust
Ruling.
(10) Section 14 is revised to reflect that while affiliated service group and leased employee
status maybe reviewed by the Service in a determination letter application, the Service no
longer rules on the effect of affiliated service group or leased employee status on the plan’s
qualified status.
Other guidance.03 Other guidance affecting this revenue procedure:
(1) Rev. Proc. 2011–49, 2011–44 I.R.B. 608 describes the procedures for the “pre-appro
val”
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 p
lans
and individually designed plans, and the deadlines to submit applications for opinion
, advisory
and determination letters. The Service issues a Cumulative List every year identify
ing changes
affecting plan qualification requirementstobeusedbyplanswhoseremedialamend
ment cycle
begins in the month of February following the publication of the Cumulative List.
(2) The 2011 Cumulative List is contained in Notice 2011–97, 2011–52 I.R.B. 923.
(3) Announcement 2010–20, 2010–15 I.R.B. 551, provides information with respect to the
issuance of opinion and advisory letters, and the opening of the EGTRRA determination letter
program for pre-approveddefined benefit plans.
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 REQUESTFORMS
REV. PROC.
SECTION
1. Initial Qualification, etc.
a. Individually-designed plans
(including collectively bargained plans) and
partial terminations
5300
7
b. ESOPs
5300, 5309
7
c. Adoptions of volume submitter plans
(where the employer has made limited
modifications to the language of the
approved specimen plan)
5307
9
d. Multiple employer plans
5300
10
e. Group trusts
5316
13
Sec. 3.01
2012–1 I.R.B.201January 3, 2012

TYPE OF REQUESTFORMS
REV. PROC.
SECTION
f.§ 414(x) combined plans
5300
7
2. Termination
a. In general
5310, 6088
12
b. Multiemployer plan covered by PBGC
insurance
5300, 6088
12
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 30days 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
a. Affiliated service group status (§ 414(m)),
leased employees (§ 414(n)), partial
termination
5300
14
b. Minimum funding waiver
530015
c. Section 401(h) determination letters
5300
16
d. Section 420 determination letters including
other matters under § 401(a)
5300,
Cover letter,
Checklist
16
e. Section 420 determination letters excluding
other matters under § 401(a)
Cover letter,
Checklist
16
Areas in which determination
letters will not be issued
.02 Determination letters issued in accordancewith this revenue procedure do not include
determinations on the following issues withinthe jurisdiction of the Commissioner, 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)), un-
less these determination letters are authorized under section 7 of Rev. Proc. 2012–4, page 125,
this Bulletin.
(2) Plans or plan amendments for which automatic approval is granted pursuant to section
19.01 of Rev. Proc. 2011–49.
(3) Plan amendments described below (these amendments will, to the extent provided, 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 Em-
ployee 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).
Sec. 3.01
January 3, 20122022012–1 I.R.B.

(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.
Submission period for applications.03 The Service will accept applications for determination letters for the second Cycle B
submission period from February 1, 2012 to January 31, 2013. The Service’s review will take
into account the qualification requirements of the Code as amended by PPA, and other items
identified on the 2011 Cumulative List in Notice 2011–97.
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. 2012–4, page 125, this Bulletin.
(2) M&P and VS plans:See, Rev. Proc. 2011–49.
(3) Technical advice requests:SeeRev. Proc. 2012–5, page 169, this Bulletin.
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 Gov-
ernment Entities), or within the jurisdiction of other offices of Chief Counsel, see Rev. Proc.
2012–1, page 1, this Bulletin.
Sec. 4.02
2012–1 I.R.B.203January 3, 2012

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 respectto which determination letters do not provide
reliance. This section applies to all determination letters other than letters relating to the qual-
ified 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 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 ofsections 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 onthe 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 letterissued for the plan is predicated on that rep-
resentation.
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 notprovide reliance for purposes of § 404, § 412,
§ 430, 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 employeris 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.
Sec. 5
January 3, 20122042012–1 I.R.B.

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 andthe extent to which it may be relied upon.
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.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 requirementsof§401isaqualifiedtrustandisexempt
from federal income tax under § 501(a) unlessthe exemption is denied under § 502, relating
to feeder organizations, or § 503, relating to prohibited transactions, if, in the latter case, the
plan is one describedin § 503(a)(1)(B).
Qualified nontrusteed annuity
plans
.03 A nontrusteed annuity plan that meets theapplicable requirements of § 401 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 allinformation and doc-
uments 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 de-
termination, 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, if any, (e.g., closing agreement or com-
pliance statement) with the determination letter application.
Complete copy of plan and trust
instrument required
.05 All changes made to the most recently approved version of the plan may be, but are not
required to be, redlined or highlighted. The determination letter application must also include
a copy of the signed and dated timely required interim and other plan amendments made to the
date of the application (other than such amendments adopted on behalf of the employer by the
practitioner that sponsors the employer’s VS plan), as provided in section 7.04 (even if these
amendments are dated earlier than a previous determination letter issued with respect to the
plan) to show that the conditions for eligibility for the applicable remedial amendment period
are satisfied.
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. 2012–4
applies
.06 Section 9 of Rev. Proc. 2012–4 is generallyapplicable to requests for determination
letters under this revenue procedure.
Separate application for each
single § 414(l) plan
.07 A separate application is required for eachsingle plan within the meaning of § 414(l).
This requirement does not pertain to applicationsregarding 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, includingthe opinion or advisory letter, if applicable.
Sec. 6.08
2012–1 I.R.B.205January 3, 2012

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 advisoryletter 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. 2012–8, page 235, this Bulletin. Form 8717,User Fee for Employee Plan Determination
Letter Request, must accompany each determination letter request. If the criteria for the user
fee exemption are met in accordance with Notice 2011–86, 2011–45 I.R.B. 698, the certifica-
tion 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 em-
ployer-employee relationship as part of its determinationonthequalification of a plan, but
relies on the applicant’s representations or assumptions, stated or implicit, regarding the exis-
tence 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 is-
sue 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 ap-
plication 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 re-
quired 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. 2012–8
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 ap-
plication 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
Sec. 6.08
January 3, 20122062012–1 I.R.B.

provide any of the information called for on any form required by this revenue procedure may
result in no reliance.
Wheretofilerequests.15 Requests for determination letters are to be addressed to EP Determinations at the fol-
lowing address:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012–0192
Requests shipped by Express Mail or adelivery 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 ormore 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 determinationlettermaybewithdrawnbyawrittenre-
quest 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, theService will not issue a determination of any
type. A failure to issue a determination letter as a result of a withdrawal will not be consid-
ered 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 is-
sues. No tape, stenographic, or other verbatimrecording 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.
Sec. 6.19
2012–1 I.R.B.207January 3, 2012

SECTION 7. WHEN
DETERMINATION LETTERS
ARE ISSUED
Requesting Determination Letters.01 This section 7 contains the procedures for requesting determination letters for individu-
ally-designed defined contribution plans, including employeestock ownership plans, and de-
fined benefit 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 instructionsto the form and any prevailing revenue proce-
dures, 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, includingcollectively bargained
plans.
(2) Form 5309,Application for Determination of Employee Stock Ownership Plan,mustbe
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 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.
(6) Form 8717,User Fee for Employee Plan Determination, Opinion, and Advisory Letter
Request.
(7) Form 2848,Power of Attorney and Declaration of Representative, or other written au-
thorization allowing the VS practitioner to actas a representative of the employer with respect
to the request for a determination letter.
Timing.03 All determination letter submissions must be submitted timely under the procedures set
forth in Rev. Proc. 2007–44. The timing of the submission period for any particular indi-
vidually designed plan within staggered remedial amendment cycles will depend on the plan’s
particular cycle. The second submission periodfor Cycle B individually designed plans will
begin February 1, 2012 and will end on January 31, 2013. Generally, an off-cycle application
will not be reviewed until all on-cycle plans have been reviewed and processed. Section 14.02,
(1)–(3) of Rev. Proc. 2007–44 lists the types of applications that may be submitted off-cycle
and given the same priority as on cycle applications.
Applicants are reminded that an off-cycle application will not be converted to an on-cycle
application once the on-cycle submission period begins if the off-cycle application has not been
processed. 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.
Sec. 7
January 3, 20122082012–1 I.R.B.

Application must include copy of
plan and amendments
.04 Copies of all interim and other plan amendments adopted since the date the most recent
determination letter application was submitted, must be included along with a copy of the re-
stated plan and trust instrument. If the plan did not receive a favorabledetermination letter
with respect to its prior remedial amendment cycle, all amendments for the Cumulative List
applicable for the plan’s prior submission period must also be submitted.
In general, except when prior law verification is required, 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 effective before the beginning of the plan’s current remedial amend-
ment 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.
Restatements required.05 Individually designed plans must be restated when they are submitted for determination
letter applications. For this purpose, submission of a working copy of the plan in a restated
format will suffice. Where a working copy is submitted with executed amendments integrated
into the working copy, all such amendments must also be separately submitted. The Service
considers a working copy as a document that incorporates all previously executed amendments
into one restated document. The intended purpose of a working copy in a restated format is
only for ease of review and plan administration and it is not a document that is intended to be
adopted. The Service reserves the right to make a determination as to whether the working
copy is in a restated format that will facilitate the review of the plan.
Controlled group elections
pursuant to Revenue Procedure
2007–44.
.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
should 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 identi-
fication numbers of all the related plans submitted together. When a controlled group election
has been made for multiple plans to be on the samecycle, the Service will determine whether
these applications will be worked simultaneously.
§ 414(x) combined plans.07 The Service will consider § 414(x) in issuing determination letters for individually de-
signed plans that consist of a defined benefit planand a qualified cash or deferred arrangement.
A § 414(x) combined plan sponsor must submit two Form 5300s and two applicable user fees.
SECTION 8. EMPLOYER
RELIANCE ON M&P AND
VOLUME SUBMITTER PLANS
Scope.01 Rev. Proc. 2011–49 describes the proceduresfor 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 Listin effect when the application is filed, unless
the employer is filing the application solely for one or more of the following reasons:
Sec. 8.02
2012–1 I.R.B.209January 3, 2012

(a) The employer has modified the terms of the M&P plan by adding overriding lan-
guage necessary to coordinate the application of the limitations of section 415 or the require-
ments of section 416 because the employer maintainsmultiple 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 re-
tirement age satisfies the requirements of section 1.401(a)–1(b)(2) of the regulations.
(c) The employer seeks a determination as to whether there has been a partial termina-
tion 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 (forexample, 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 whenthe 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 describesthe procedures for requesting determination
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 effectof a determination letter, and section 5.01(4)
of Rev. Proc. 2008–50, 2008–2 C.B. 464, 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 em-
ployers of VS plans where the employer has made limited modifications to the approved spec-
imen 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 amendments 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 limitedmodifications 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:
Sec. 8.02
January 3, 20122102012–1 I.R.B.

(a) Form 8717,User Fee for Employee Plan Determination, Opinion, and Advisory Letter
Request;
(b) Form 5307,Application for Det
ermination for Adopters of Master or Prototype or VS
Plans;
(c) Form 2848,Power of Attorney and Declaration of Representative, or other written au-
thorization allowing the VS practitioner to actas 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 a copy of the completed adoption
agreement;
(g) A written representation (signature optional) made by the VS practitioner which ex-
plains 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 modifi-
cations 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 ap-
proving 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 may 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 userfee. A determination letter application for a
VS plan must be based on the approved VS specimen plan with any applicable modifications.
Seesection 19.03 in Rev. Proc. 2011–49.
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).
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 eachemployer 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
Sec. 10.02
2012–1 I.R.B.211January 3, 2012

a multiple employer plan can rely on a favorabledetermination 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 aswell as a separate Form 5300 application, com-
pleted through line 8, and, if applicable, a completed adoption agreement, 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. 2012–8.
Where to file.03 The complete application, including allForms 5300 (and, if applicable, adoption agree-
ments) 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 determinationletter 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 em-
ployer 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 applica-
tion 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 (and, if applicable, adoption agreement)
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 sub-
mitted 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.
SECTION 11. RESERVEDReserved
SECTION 12. TERMINATION
OR DISCONTINUANCE
OF CONTRIBUTIONS;
NOTICE OF MERGERS,
CONSOLIDATIONS, ETC.
Scope.01 This section contains procedures for requesting determination letters involving plan ter-
mination or discontinuance of contributions. This section also contains procedures regarding
required notice of merger, consolidation, or transfer of assets or liabilities.
Forms.02 Required Forms
(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,isalsorequired
of a sponsor or plan administrator of a defined benefit plan or an underfunded defined contri-
bution 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.
(4) Form 5310–A,Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan As-
sets or Liabilities — Notice of Qualified Separate Lines of Business, if required, generally must
Sec. 10.02
January 3, 20122122012–1 I.R.B.

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,mustbefiledtoestab-
lish 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 deter-
mined under Part III of Rev. Proc. 2007–44.
(6) Form 8717,User Fee for Employee Plan Determination, Opinion, and Advisory Letter
Request.
(7) Form 2848,Power of Attorney and Declaration of Representative, or other writt
en au-
thorization allowing the VS practitioner to act as a representative of the employe
r with respect
to the request for a determination letter.
Supplemental information.03 The application for a determination letterinvolving plan termination must also include
any supplemental information or schedules required by the forms or form instructions. For ex-
ample, 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 thatcontain 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, mustbe amended to comply with the applicable pro-
visions 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 amend-
ment 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 ef-
fective 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 terminatingthe 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.
Restatement not required for
terminating plan
.06 A terminating plan generally does not have to be restated. However, see section 7.05 and
.05 of this section above. The Service has the discretion to request copies of any amendments
during its review of a terminating plan.
SECTION 13. GROUP TRUSTS
Scope.01 This section provides special proceduresfor 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
Sec. 13.02
2012–1 I.R.B.213January 3, 2012

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 clarifiesthe ability of certain individual retirement ac-
counts 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 modi-
fied 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, Opinion, and Advisory Letter
Request.
(2) Form 2848,Power of Attorney and Declaration of Representative, or other written au-
thorization allowing the VS practitioner to actas a representative of the employer with respect
to the request for a determination letter.
(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 infor-
mation 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 em-
ployee 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 re-
spect 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 othermaterials necessary to make a determination
along with Form 5300. When an employer requests a determination regarding affiliated ser-
vice 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.
Sec. 13.02
January 3, 20122142012–1 I.R.B.

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 determinationand 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 man-
agement 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 indicat-
ing 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 describedin§414(m)(2)(B)(ii)
or § 414(m)(6)(B));
(5) A description of services performed for the employer by the members (or possible mem-
bers) of the affiliated service group, or viceversa (including the percentage of each member’s
(or possible member’s) gross receipts and service receipts provided by such services, if avail-
able, 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 af-
filiated 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 explain-
ing 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 pos-
sible 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);
(8) A copy of any ruling issued by the headquarters office 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 re-
quests 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 performing
services on a substantially full-time basis);
Sec. 14.07
2012–1 I.R.B.215January 3, 2012

(4) A description of facts and circumstancesrelevant 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, whetherthe leased employees are subject to the supervi-
sion of the recipient, and whether the leased employees must perform services in the order or
sequence set by the recipient);
(5) If the recipient organization is relyingon any qualified plan(s) maintained by the em-
ployee 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 attributableto services performed for the recipient organi-
zation, plan eligibility, and vesting.)
SECTION 15. WAIVER OF
MINIMUM FUNDING
Scope.01 This section provides procedures with respect to defined contribution plans for request-
ing 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 meth-
ods 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 satisfythe 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 caveatindicating 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
Sec. 14.07
January 3, 20122162012–1 I.R.B.

section 15.03 where it will be treated as if ithad 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 auditjurisdiction 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 sec-
tions 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 amend-
ments.
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 asa 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 Officewill 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 consideration 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 Determinations 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 Managerdoes not ask for reconsideration of the technical
advice memorandum within 10 working days, EPTechnical 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 submit-
ted 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 h
as not yet ended, the applicant may have
difficulty in furnishing sufficient current evi
dence 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 requ
ested.
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
Sec. 16.01
2012–1 I.R.B.217January 3, 2012

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 require-
ments 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 revenueprocedure 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 in a cover letter.
The cover letter must specificallystate (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 requirements. Parts I and II of the checklist in the Appendix of
this revenue procedure may be used to identifythe 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 rulein 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 ye
ar preceding the employer’s first taxable year
beginning after December 31, 1990, and
before the earlier of (i) the due date (including exten-
sions) for the filing of the return of ta
x 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 “qual-
ified current retiree health liabilities,” as defined in § 420(e)(1).
(5) The plan must provide that no transfer will be made after December 31, 2013.
(6) The plan must provide that any assets transferred, and any income allocable to such
assets, shall be used only to pay qualified currentretiree 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 arenot 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 pensionbenefits 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
Sec. 16.01
January 3, 20122182012–1 I.R.B.

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 providethat the accrued benefit of a participant who
separated from service during the taxable year towhich 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 satisfying
§ 420(c)(3). The plan must define “applicableemployer 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 accordancewith 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 Depart-
ment 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 Deter-
minations. (However, see sections 17.03 and 17.04 fo
r filing deadlines where the Department
of Labor has been requested to comment.) Such commen
ts must be in writing, signed by the
interested parties or by an authorized representat
ive of such parties (as provided in section
9.02(11) of Rev. Proc. 2012–4), addressed to EP Det
erminations at the address in section 6.17,
and 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 admin-
istrator;
(4) Whether the parties submitting the comment are:
(a) Employees eligible to participate under the plan,
(b) Employees with accrued benefits under theplan, or former employees with vested ben-
efits under the plan,
Sec. 17.02
2012–1 I.R.B.219January 3, 2012

(c) Beneficiaries of deceased former employeeswho 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 sub-
mitted jointly by more than one party, the name and address of a designated representative) to
which all correspondence, including a notice ofthe Service’s final determination 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 thecomment as the representative for receipt of
correspondence, a notice of determination mailedtoanyinterestedpartywhosubmittedthe
comment shall be notice to all the interested parties who submitted the comment for purposes
of § 7476(b)(5) of the Code.
Requests for DOL to submit
comments
.03 A request to the Department of Labor to submit to EP Determinations a comment pur-
suant to section 3001(b)(2) of ERISA must be made in accordance with the following proce-
dures.
(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 daythe 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 willbe submitted to EP Determinations at the ad-
dress in section 6.17;
(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
Sec. 17.02
January 3, 20122202012–1 I.R.B.

Right to comment if DOL declines
to comment
.04 If a request described in 17.03 is made andthe Department of Labor notifies the inter-
ested parties making the request that it declines to comment on a matter concerning qualifi-
cation 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 Deter-
minations 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 sec-
tion 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 17.0
4, 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
.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 Determi-
nations, or the Department. Notification by theDepartment 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.
SECTION 18. WHAT ARE
THE GENERAL RULES FOR
NOTICE TO INTERESTED
PARTIES?
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&A.
Time when notice mus
tbegiven
.02 Notice must be gi
ven not less than 10 days nor more than 24 days prior to the day the
application for a de
termination is made. If, however, an application is returned to the applicant
for failure to adequ
ately satisfy the notification requirements with respect to a particular group
or class of interest
ed parties, the applicant need not cause notice to be given to those groups or
classes of interes
ted 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 n
ot be met.
Contentofnotice.03 The notice referred to in section 18.01 shall contain the following information:
(1) A brief description identifying the classor classes of interested parties to whom the
notice is addressed (e.g., all present employeesof the employer, all present employees eligible
to participate);
(2) The name of the plan, the plan identification number, and the name of the plan admin-
istrator;
Sec. 18.03
2012–1 I.R.B.221January 3, 2012

(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 6.17, 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 s
tatus
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 submitcomments. 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 De-
partment of Labor must be received in order to preserve the right of comment (see section 17
above);
(9) The number of interestedparties needed in order for the Department of Labor to com-
ment; 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 reason-
able 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 no-
tice) be made available to interested parties, may consist of making such material available for
inspection and copying by interested partiesat 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 sup-
ply 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 plead-
ing 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 avail-
able 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 participantsin 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 underthe plan, and employees who
Sec. 18.03
January 3, 20122222012–1 I.R.B.

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 maybe 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 ben-
efits 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 de-
termination, 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 appli-
cation, 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 bemade 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 ap-
plicant; 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 employeescurrently receiving benefits under the plan,
and employees who would be eligible to participate upon making mandatory employee con-
tributions, 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, re-
ceive 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.
2012–1 I.R.B.223January 3, 2012

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 withtaxpayers or their representatives inquiries
regarding: substantive tax issues; whether the Service will issue a determination letter on par-
ticular issues; and questions relating to procedural matters about submitting determination let-
ter 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, tele-
phone, 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 rev-
enue rulings that may aid the inquirer in resolving the question or problem.
Conferences.02 EP Determinations may grant a conferenceupon 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 facili-
tating review and determination when the plan, etc., is formally submitted. See section 6.18
regarding the right to a status conference onapplications 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 modificationsor 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 per-
sons (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 repre-
sented 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 investi-
gation.
(2) The administrative record shall be closed upon the earlier of the following events:
Sec. 19
January 3, 20122242012–1 I.R.B.

(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 ap-
plication 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 ofthe 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 deter-
mination 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 admin-
istrative 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 appli-
cants, 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 fromseeking declaratory judgment under § 7476 ex-
cept 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 proce-
dure;
(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 is-
sued 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 (seesec-
tion 19 of Rev. Proc. 2012–5).
Sec. 20.03
2012–1 I.R.B.225January 3, 2012

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 Determina-
tions 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 mat-
ter in accordance with section 17.01(3) and, ifthe Department of Labor declines to comment,
submitting the comment in accordance with section 17.01(4) above, so that it may be consid-
ered 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 applicableto 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 s
hall be
extended in a case where there has not beena completion of all the steps referred to
in section
20.02 and the Service has proceeded with due diligence in processing the applic
ation for de-
termination.
Service must act on appeal.06 The step described in section 20.02(3) willnot 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 opin-
ion 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 let-
ter 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 ofthe information called for on any form required
by this revenue procedure may result in no reliance. Applicants are advised to retain copies of
all supporting data submitted with their applications. Failure to do so may limit the scope of
reliance.
Sections 13 and 14 of Rev. Proc.
2011–4 applicable
.02 Except as otherwise provided in this section, determination letters are governed, gener-
ally, by the provisions of sections 13 and 14 of Rev. Proc. 2012–4.
Effect of subsequent publication
of revenue ruling, etc.
.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 adminis-
trative 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;
Sec. 20.04
January 3, 20122262012–1 I.R.B.

(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 determina-
tion letter.
However, all such plans must be amended to comply with the published guidance for sub-
sequent years, in accordance with the rules set forth in Rev. Proc. 2007–44. See, in particular,
Part II of that revenue procedure.
Determination letter does not
applytotaxabilityissues
.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 ex-
amination of the employer’s tax return, in accordance with the limitations, and subject to the
conditions of, § 404.
SECTION 22. EFFECT
ON OTHER REVENUE
PROCEDURES
Rev. Proc. 2011–6 is superseded. Rev. Proc. 2011–49 is modified.
SECTION 23. EFFECTIVE
DATE
This revenue procedure is effective February 1, 2012, for plans under the 5-year remedial
amendment cycle (other than terminating plans), and effective May 1, 2012, for terminating
plans and for plans under the 6-year remedial amendment cycle.
SECTION 24. PAPERWORK
REDUCTION ACT
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 Reduc-
tion 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 collec-
tion 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, withan estimated average of 2.02 hours. The esti-
mated 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 INFORMATIONThe 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 Planstaxpayer assistancetelephone service at
1–877–829–5500 (a toll-free number) or Mr. Slack atRetirementPlanQuestions@irs.gov.
2012–1 I.R.B.227January 3, 2012

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 InternalRevenue 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:
EP Determinations
Internal Revenue Service
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.
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.
REQUESTS FOR COMMENTS BY THE DEPARTMENT OF LABOR
Sec. 24
January 3, 20122282012–1 I.R.B.

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 specifythe 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
ATTN: 3001 Comment Request
U.S. Department of Labor,
200 Constitution Avenue, N.W.
Washington, D.C. 20210
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 maybe found in sections 17 and 18 of
Rev. Proc. 2012–6. 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. 2011–6 are available at
during the hours offor inspection and copying. (There is a nominal charge for copying
and/or mailing.)
2012–1 I.R.B.229January 3, 2012

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
CIRCLESECTION
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?Yes No
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 accountstate 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 sat-
isfaction 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
Sec. 24
January 3, 20122302012–1 I.R.B.

3. Does the Plan provide that only one transfer may be made in a taxable
year (except with regard to transfersrelating 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,
2013?
Yes No
6. Does the Plan provide that transferred assets and income attributable to such
assets shall be used only to pay qualifiedcurrent 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 nonfor-
feitable 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 whoseparated 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 em-
ployees?
Yes No
2012–1 I.R.B.231January 3, 2012

26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2012–7
SECTION 1. PURPOSE
This revenue procedure updates Rev.
Proc. 2011–7, 2011–1 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 (Inter-
national) relating to matters on which the
Internal Revenue Service will not issue let-
ter rulings or determination letters.
SECTION 2. BACKGROUND AND
SCOPE OF APPLICATION
.01 Background
In the interest of sound tax administra-
tion, the Service answers inquiries from in-
dividuals and organizations regarding their
status for tax purposes and the tax effects
of their acts or transactions before the fil-
ing of returns or reports that are required
by the Internal Revenue Code. There are,
however, areas where the Service will not
issue letter rulings or determination let-
ters, either because the issues are inher-
ently 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 rul-
ings 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 jus-
tify issuing a letter ruling or determination
letter. A taxpayer who plans to request a
letter ruling or determination letter in an
area described in Section 4 should con-
tact (by telephone or in writing) the Office
of Associate Chief Counsel (International)
(hereinafter “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 submission is encour-
aged since it will enable Office personnel
to arrive more quickly at an understand-
ing of the unique facts of each case. A
taxpayer who contacts the Office by tele-
phone may be requested to provide a writ-
ten submission. The Service may provide
a general informationletterinresponseto
inquiries in areas on either list. These lists
are not all-inclusive. Future revenue pro-
cedures may add or delete items. The Ser-
vice may also decline to rule on an individ-
ual case for reasons peculiar to that case,
and such decision will not be announced
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 inconsistent
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 inconsistent
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 resi-
dent of a foreign country and derives in-
come from the United States is entitled to
benefits under the United States income
taxtreatywiththatforeigncountrypur-
suant to the limitation on benefits article.
However, the Service may rule regarding
the legal interpretation of a particular pro-
vision 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 in-
come.
(6) Section 7701(b).—Definition
of Resident Alien and Nonresident
Alien.—Whether an alien individual is a
nonresident of the United States, including
whether the individual has met the require-
ments of the substantial presence test or
exceptions to the substantial presence test.
However, the Service may rule regard-
ing the legal interpretation of a particular
provision of § 7701(b) or the regulations
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. 2012–1.
(2) Whether reasonable cause exists un-
der Subtitle F (Procedure and Administra-
tion) of the Code.
(3) Whether a proposed transaction
would subject a taxpayer to criminal penal-
ties.
(4) Any area where the ruling request
does not comply with the requirements of
Rev. Proc. 2012–1.
(5) Any area where the same issue is the
subject of the taxpayer’s pending request
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 ab-
sent extraordinary circumstances (e.g., a
request for a ruling required by a govern-
mental regulatory authority in order to ef-
fectuate the transaction.)
(7) Any frivolous issue, as that term is
defined in § 6.10 of Rev. Proc. 2012–1.
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 Prop-
erty from the United States.—Whether an
oil or gas working interest is transferred
from the United States for use in the ac-
tive conduct of a trade or business for
purposes of § 367(a)(3); and whether any
other property is so transferred, where the
Sec. 1
January 3, 20122322012–1 I.R.B.

determination requires extensive factual
inquiry.
(2) Section 367(b).—Other Trans-
fers.—Whether a foreign corporation is
considered a corporation for purposes of
any nonrecognition provision listed in
§ 367(b), and related issues, unless the
ruling request presents a significant legal
issue or subchapter C rulings are requested
in the context of reorganizations or liqui-
dations involving foreign corporations.
(3) Section 864.—Definitions and
Special Rules.—Whether a taxpayer is
engaged in a trade or business within
the United States, and whether income
is effectively connected with the con-
duct 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 taxpayer effects transactions in
the United States in stocks or securities
under § 1.864–2(c)(2); whether an instru-
ment 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.
(4) Section 871.—Tax on Nonresident
Alien Individuals.— Whether a payment
constitutes portfolio interest under Sec.
871(h); whether an obligation qualifies for
any of the components of portfolio inter-
est such as being in registered form; and
whether the income earned on contracts
that do not qualify as annuities or life
insurance contracts because of the limita-
tions imposed by § 72(s) and § 7702(a) is
portfolio interest as defined in § 871(h); .
(5) Section 881.—Tax on Income of
Foreign Corporations Not Connected with
United States Business.—Whether the
income earned on contracts that do not
qualify as annuities or life insurance con-
tracts because of the limitations imposed
by § 72(s) and § 7702(a) is portfolio inter-
est as defined in § 881(c).
(6) 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.
(7) 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 in-
ternational organization is excluded from
gross income and exempt from taxation
and any underlying issue related to that
determination.
(8) 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 politi-
cal subdivision or a local authority thereof
is exempt from federal income tax or with-
holding under any of the United States in-
come tax treaties which contain provisions
applicable to such individuals.
(9) Section 894.—Income Affected by
Treaty.—Whether a taxpayer has a perma-
nent establishment in the United States for
purposes of any United States income tax
treaty and whether income is attributable
to a permanent establishment in the United
States.
(10) Section 894.—Income Affected by
Treaty.—Whether certain persons will be
considered liable totax under the laws of a
foreign country for purposes of determin-
ing 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.
(11) 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.
(12) Section 894.—Income Affected by
Treaty.—Whether the income received by
a nonresident alien performing research or
teaching as personal services for a univer-
sity, hospital or other research institution
is exempt from federal income tax or with-
holding under any of the United States in-
come tax treaties which contain provisions
applicable to such nonresident alien teach-
ers or researchers.
(13) Section 894.—Income Affected by
Treaty.—Whether a foreign recipient of
payments made by a United States person
is ineligible to receive the benefits of a
United States tax treaty under the princi-
ples of Rev. Rul. 89–110, 1989–2 C.B.
275.
(14) Section 894.—Income Affected by
Treaty.—Whether a recipient of payments
is or has been a resident of a country for
purposes of any United States tax treaty.
Pursuant to § 1.884–5(f), however, the Ser-
vice may rule whether a corporation repre-
senting that it is a resident of a country is
a qualified resident thereof for purposes of
§884.
(15) Section 894.—Income Affected by
Treaty.—Whether an entity is treated as
fiscally transparent by a foreign jurisdic-
tion for purposes of § 894(c) and the regu-
lations thereunder.
(16) 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.
(17) 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 economic
benefit. See § 1.901–2A(c)(2).
(18) Section 903.—Credit for Taxes in
Lieu of Income, Etc., Taxes.—Whether a
foreign levy meets the requirements of a
creditable tax under § 903
(19) Sections 927(a) (Repealed),
936(h)(5), 943(a)(Repealed), 954(d),
993(c).—ManufacturedProduct.—
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).
(20) Section 936.—Puerto Rico and
Possession Tax Credit.—What constitutes
a substantial line of business.
(21) 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 regard-
ing the legal interpretation of a particular
provision of § 937(a) or the regulations
thereunder.
(22) Section 956.—Investment of Earn-
ings in United States Property.—Whether
a pledge of the stock of a controlled for-
eign corporation is an indirect pledge
Sec. 4
2012–1 I.R.B.233January 3, 2012

of the assets of that corporation. See
§ 1.956–2(c)(2).
(23) Section 985.—Functional Cur-
rency.—Whether a currency is the func-
tional currency of a qualified business
unit.
(24) Section 989(a).—Qualified Busi-
ness Unit.—Whether a unit of the tax-
payer’s trade or business is a qualified
business unit.
(25)Section1058.—Transfers
of Securities under Certain Agree-
ments.—Whether the amount of any pay-
ment described in § 1058(b)(2) or the
amount of any other payment made in
connection with a transfer of securities
describedin§1058isfromsourceswithin
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.
(26) Section 1503(d).—Dual Con-
solidated 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 dualconsolidated loss
is incurred under § 1.1503(d)–3(e)(1);
whether no possibility of foreign
use exists under § 1.1503(d)–6(c)(1);
whether an event presumptively con-
stitutes a triggering event under
§ 1.1503(d)–6(e)(1)(i)–(ix); whether the
presumption of a triggering event is re-
butted under § 1.1503(d)–6(e)(2); and
whether a domestic use agreement ter-
minates under § 1.1503(d)–6(j)(1). The
Service will also not ordinarily rule on the
corresponding provisions of prior regula-
tions under section 1503(d).
(27) 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).
(28)Section7701.—Defini-
tions.—Whether an estate or trust is a
foreign estate or trust for federal income
tax purposes.
(29)Section7701.—Defini-
tions.—Whether an intermediate entity is
a conduit entity under § 1.881–3(a)(4);
whether a transaction is a financing trans-
action under § 1.881–3(a)(ii); whether the
participation of an intermediate entity in
a financing 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 unre-
lated intermediate entity would not have
participated in a financing arrangement
on substantially the same terms under
§ 1.881–3(c).
(30) Section 7874.—Expatriated Enti-
ties and their Foreign Parents.—Whether,
after the acquisition, the expanded affili-
ated group has substantial business activi-
ties in the foreign country in which, or un-
der the law of which, the acquiring foreign
entity is created or organized, when com-
pared to the total business activities of the
expanded affiliated group.
.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 differ-
ent 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 consequence
or classification are inconsistent with the
purposes of U.S. tax law (including 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 mecha-
nism for obtaining tax information with re-
spect to civil tax examinations and crim-
inal tax investigations, which would pre-
clude the Service from obtaining informa-
tion located in such jurisdiction that is rel-
evant to the analysis or examination of the
tax issues involved in the ruling request.
(b) The provisions of subsection
4.02(4)(a) above shall not apply if the tax-
payer or affected related party (i) consents
to the disclosure of all relevant informa-
tionrequestedbytheServiceinprocessing
the ruling request or in the course of an
examination to verify the accuracy of the
representations made and to otherwise an-
alyze or examine the tax issues involved
in the ruling request, and (ii) waives all
claims to protection of bank or commer-
cial 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 rele-
vant 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 rescindanyrulingrendered
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 documents.
The interpretation of a foreign law or for-
eign 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 re-
quest information in addition to that listed
in §§ 7.01(2)(b) and (c) of Revenue Proce-
dure 2012–1, including a discussion of the
implications of any authority believed to
interpret the foreign law or foreign docu-
ment, such as pending legislation, treaties,
court decisions, notices or administrative
decisions.
SECTION 5. EFFECT ON OTHER
REVENUE PROCEDURE
Rev. Proc. 2011–7 is superseded.
SECTION 6. EFFECTIVE DATE
This revenue procedure is effective Jan-
uary 3, 2012.
SECTION 7. DRAFTING
INFORMATION
This revenue procedure was compiled
by Jeffrey L. Vinnik of the Office of As-
sociate Chief Counsel (International). For
further information about this revenue pro-
cedure, please contact Mr. Vinnik at (202)
622–3810 (not a toll-free number).
Sec. 4
January 3, 20122342012–1 I.R.B.

26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2012–8
TABLE OF CONTENTS
SECTION 1. PURPOSE
............................................................................................ 236
SECTION 2. CHANGES........................................................................................... 236
SECTION 3. BACKGROUND....................................................................................... 236
.01Legislationauthorizinguserfees .............................................................................. 236
.02Relatedrevenueprocedures................................................................................... 236
SECTION 4. SCOPE............................................................................................... 236
.01Requeststowhichuserfeesapply ............................................................................. 237
.02Requestsandotheractionsthatdonotrequirethepaymentofauserfee............................................ 237
.03Exemptionsfromtheuserfeerequirements..................................................................... 237
.04ComplianceandCorrectionFees .............................................................................. 237
SECTION 5. DEFINITIONS........................................................................................ 237
SECTION 6. FEE SCHEDULE...................................................................................... 238
EMPLOYEEPLANSUSERFEES............................................................................... 238
.01Letterrulingrequests......................................................................................... 238
.02 Opinion letters on prototypeindividual retirement accounts and/or annuities, SEPs, SIMPLE IRAs,
SIMPLEIRAPlans,RothIRAsanddualpurposeIRAs........................................................... 239
.03Opinionlettersonmasterandprototypeplans. .................................................................. 239
.04Advisorylettersonvolumesubmitterplans. .................................................................... 240
.05Determinationletters......................................................................................... 240
EXEMPTORGANIZATIONSUSERFEES........................................................................ 241
.06Letterrulings. .............................................................................................. 241
.07Determinationlettersandrequestsforgroupexemptionletters.................................................... 241
.08Summaryofexemptorganizationfees.......................................................................... 242
SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS, DETERMINATION LETTERS,
ETC.
................................................................................................. 244
.01MattershandledbyEPorEOTechnical........................................................................ 244
.02MattershandledbyEPorEODeterminations................................................................... 244
SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES, ISSUES,
TRANSACTIONS, OR ENTITIES
........................................................................ 244
.01Requestsinvolvingseveraloffices............................................................................. 245
.02Requestsinvolvingseveralfeecategories....................................................................... 245
.03Requestsinvolvingseveralissues.............................................................................. 245
.04Requestsinvolvingseveralunrelatedtransactions................................................................ 245
.05Requestsforseparateletterrulingsforseveralentities............................................................ 245
SECTION 9. PAYMENT OF FEE.................................................................................... 245
.01Methodofpayment.......................................................................................... 245
.02Transmittalforms............................................................................................ 245
.03Effectofnonpaymentorpaymentofincorrectamount............................................................ 245
SECTION 10. REFUNDS........................................................................................... 245
.01Generalrule ................................................................................................ 246
.02Examples................................................................................................... 246
SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE..................................................... 246
SECTION 12. EFFECT ON OTHER DOCUMENTS.................................................................... 247
2012–1 I.R.B.235January 3, 2012

SECTION 13. EFFECTIVE DATE................................................................................... 247
SECTION 14. PAPERWORK REDUCTION ACT...................................................................... 247
APPENDIX....................................................................................................... 247
SECTION 1. PURPOSE
This revenue procedure provides guid-
ance for complying with the user fee
program of the Internal Revenue Service
as it pertains to requests for letter rulings,
determination letters, etc., on matters un-
der the jurisdiction of the Commissioner,
Tax Exempt and Government Entities Di-
vision; and requests for administrative
scrutiny determinations under Rev. Proc.
93–41, 1993–2 C.B. 536.
SECTION 2. CHANGES
.01In general. This revenue procedure
is a general update of Rev. Proc. 2011–8,
2011–1 I.R.B. 237. In addition to minor
revisions, such as updating references, the
following changes have been made:
.02 Section 4.03(3) has been added to
describe the exemption from the user fee
requirements for certain applications filed
within a remedial amendment period with
respect to the plan beginning within the
plan’s first five years.
.03 Sections 6.03 and 6.05 have been re-
organized to correspond with Form 8717,
User Fee for Employee Plan Determina-
tion, Opinion and Advisory Letter Request.
.04 Section 6.03(6) has been deleted as
unnecessary because letters are not pro-
vided for additional adoption agreements
after the basic plan document and associ-
ated adoption agreements have been ap-
proved.
.05 Deleted Note 1 in section 6.03 as un-
necessary because the mass submitter may
be counted as one of the 30 unaffiliated
sponsors required for purposes of deter-
mining whether this sponsorship require-
ment is met without needing to submit a
separate opinion letter application on be-
half of that mass submitter.
.06 Modified section 6.05 to reflect
changes to the determination letter pro-
gram which include, eliminating the
option of plan sponsors to request a de-
termination relating to minimum partici-
pation, coverage, and nondiscrimination
requirements of the Internal Revenue Code
(“Code”) in conjunction with an applica-
tion for a determination letter, and limiting
the ability to file a Form 5307,Application
for Determination for Adopters of Master
or Prototype or Volume Submitter Plans,
to adopters of certain VS plans who mod-
ifythetermsofanapprovedspecimen
plan.
.07 Added section 6.07(5).
.08 Section 6.08 now includes
cross-references to Form 8940. The sec-
tion also was modified to clarify that
voluntary requests from public charities
for private foundation status and voluntary
requests from publiccharities to change
from one public charity status to another
public charity status requires payment of
the applicable user fee.
.09 Section 7.01 has been modified to
update the address for hand delivered re-
quests.
.10 Added language to section 9.01
advising applicantsthat electronic fund
transfers will be utilized for the payment
of user fees.
SECTION 3. BACKGROUND
.01Legislation authorizing user fees.
Section 7528 of the Code directs the Secre-
tary of the Treasury or delegate (the “Sec-
retary”) 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 categories or sub-
categories establishedby the Secretary; (2)
are to be determined after taking into ac-
count the average time for, and difficulty
of, complying with requests in each cate-
gory and subcategory; and (3) are payable
in advance. Section 7528(b)(3) directs the
Secretary to provide for exemptions and
reduced fees under the program as the Sec-
retary determines to be appropriate, but
the average fee applicable to each category
may not be less than the amount specified
in § 7528.
.02Related revenue procedures.The
various revenue procedures that require
payment of a user fee, or an administra-
tive scrutiny determination user fee are
described in the appendix to this revenue
procedure.
SECTION 4. SCOPE
.01Requests to which user fees apply.
In general, user fees apply to all requests
for letter rulings, opinion letters, determi-
nation letters, and advisory letters submit-
ted by or on behalf of taxpayers, sponsor-
ing organizations or other entities as de-
scribed in this revenue procedure. Fur-
ther, administrative scrutiny determination
user fees, described in Rev. Proc. 93–41,
are collected through the user fee program
described in this revenue procedure. Re-
quests to which a user fee or an administra-
tive scrutiny determination user fee is ap-
plicable must be accompanied by the ap-
propriate fee as determined from the fee
schedule set forth in section 6 of this rev-
enue procedure. The fee may be refunded
in limited circumstances as set forth in sec-
tion 10.
.02Requests and other actions that do
not require the payment of a user fee.Ac-
tions which do not require the payment of
a user fee include the following:
(1) Requests for information letters as
defined in Rev. Proc. 2012–4, this Bul-
letin;
(2) Elections pertaining to automatic
extensions of time under § 301.9100–1 of
the Procedure and Administration regula-
tions;
(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 Indi-
vidual Retirement Trust Account,orForm
5305–A,Traditional Individual Retire-
ment Custodial Account, in order to adopt
an individual retirement account under
§ 408(a);
(4) In general, plan amendments
whereby sponsors amend their plans by
adopting, word-for-word, the model lan-
guage 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 letters
for plans that are amended solely to add
the model language; and
Sec. 1
January 3, 20122362012–1 I.R.B.

(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.
.03Exemptions from the user fee re-
quirements. The following exemptions ap-
ply to the user fee requirements. These are
the only exemptions that apply:
(1) Departments, agencies, or instru-
mentalities of the United States that cer-
tify that they are seeking a letter ruling,
determination letter, opinion letter or simi-
lar letter on behalf of a program or activity
funded by federal appropriations. The fact
that a user fee is not charged has no bear-
ing 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 pur-
poses (chapters 21, 22, 23, 23A, and 24
of subtitle C of the Code) submitted on
Form SS–8,Determination of Worker Sta-
tus for Purposes of Federal Employment
Taxes and Income Tax Withholding, or its
equivalent. Such a request may be submit-
ted in connection with an application for a
determination on the qualification of a plan
when it is necessary to determine whether
an employer-employee relationship exists.
See section 6.12 of Rev. Proc. 2012–6. In
that case, although no user fee applies to
the request submitted on Form SS–8, the
applicable user fee must be paid in connec-
tion with the application for determination
on the plan’s qualification.
(3) The exemption from the user
fee requirements applies to all eligi-
ble employers within the meaning of
§ 7528(b)(2)(C)(ii) who request a determi-
nation letter within the first five plan years
or, if later, the end of any remedial amend-
ment 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,Opinion
and Advisory Letter Request,andNotice
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
.04Compliance and Correction Fees.
Compliance fees and compliance cor-
rection fees under the Employee Plans
Compliance Resolution System are not
described in this procedure because they
are compliance fees or compliance cor-
rection fees and not user fees. For further
guidance, please see Rev. Proc. 2008–50,
2008–35 I.R.B. 464.
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:
Administrative scrutiny determinationRev. Proc. 93–41
Adoption agreementRev. Proc. 2011–49
Advisory letterRev. Procs. 2011–49, 2012–6
Basic plan documentRev. Proc. 2011–49
Determination letterRev. Procs. 2012–6, 2012–9
Dual-purpose IRA
Rev. Procs. 98–59, 2010–48
Group exemption letterRev. Proc. 80–27
Information letterRev. Proc. 2012–4
Letter rulingRev. Proc. 2012–4
Mass submitter
Rev. Procs. 87–50, 2011–49
Mass submitter planRev. Proc. 2011–49
Master planRev. Proc. 2011–49
Minor modification
Rev. Procs. 87–50, 2011–49
Opinion letterRev. Procs. 2011–49, 2012–4
Prototype planRev. Proc. 2011–49
Roth IRA
Rev. Procs. 98–59, 2010–48
SIMPLE IRARev. Proc. 97–29
SIMPLE IRA PlanRev. Proc. 97–29
Plan SponsorRev. Proc. 2011–49
Sponsoring organization
Rev. Procs. 87–50, Rev. Proc. 2011–49
Staggered Remedial Amendment PeriodRev. Proc. 2007–44
Sec. 5
2012–1 I.R.B.237January 3, 2012

Substitute mortality tableRev. Proc. 2007–37
Volume submitter lead specimen planRev. Proc. 2011–49
Volume submitter planRev. Proc. 2011–49
Volume submitter specimen planRev. Proc. 2011–49
Word-for-word identical adoption
Rev. Procs. 87–50, 2011–49
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.
CATEGORY
EMPLOYEE PLANS USER FEES
.01Letter ruling requests.
(1) Computation of exclusion for annuitant under § 72
$1,000
(2) Change in plan year (Form 5308)
$1,000
(3) Five-Year Automatic Extension of the Amortization Period
$1,000
Note:No user fee is required if the requested change is permitted to be made
pursuant to the procedure for automatic approval set forth in Rev. Proc.
87–27, 1987–1 C.B. 769. In such a case, Form 5308 should not be submitted
to the Service.
(4) Certain waivers of 60-day rollover period
(a) Rollover less than $50,000$500
(b) Rollover equal to or greater than $50,000 and less than
$100,000
$1,500
(c) Rollover equal to or greater than $100,000$3,000
(5) Change in funding method
$4,000
(6) Letter ruling under Rev. Proc. 90–49, 1990–2 C.B. 620
$4,000
(7) Change in accounting method
$4,000
(8) Request for administrative exemptions for participant-directed
transactions that are in compliance with the regulations under § 404(c) of
ERISA
$4,000
(9) Letter ruling request on Roth IRA Recharacterization
$4,000
(10) Approval to become a nonbank trustee (see § 1.408–2(e) of the
Income Tax Regulations)
$20,000
(11) Any letter ruling under § 419 or § 419A
$14,500
(12) Substitute mortality table under Rev. Proc. 2007–37
$14,500
(13) Waiver of minimum funding standard or excise tax of $1,000,000 or
more (§ 412(d), 4971(b) or 4971(f))
$14,500
(14) All other letter rulings, etc., including:
$10,000
(a) Administrative scrutiny determinations with respect to
separate lines of business (for each separate line or lines
of 5 or less)
Sec. 5
January 3, 20122382012–1 I.R.B.

(b) Individually designed simplified employee pension
(SEP)
(c) Waiver of minimum funding standard or excise tax of
less than $1,000,000 (§ 412(d), 4971(b) or 4971(f))
.02Opinion letters on prototype individual retirement accounts and/or
annuities, SEPs, SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual
purpose IRAs.
(1) Prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA,
per plan document, new or amended
$3,000
(2) Sponsoring organization’s word-for-word identical adoption of mass
submitter’s prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan, or
Roth IRA, per plan document or an amendment thereof
$200
Note:If a mass submitter submits, in any 12 month period ending January 31,
more than 300 applications on behalf of word-for-word adopters of prototype
IRAs or prototype dual purpose IRAs with respect to a particular plan
document, only the first 300 such applications will be subject to the fee; no
fee will apply to those in excess of the first 300 such applications submitted
within the 12 month period.
(3) Sponsoring organization’s minormodification of a mass submitter’s
prototype IRA, SEP, SIMPLE IRA, dual purpose IRA, SIMPLE IRA
Plan, or Roth IRA, per plan document
$750
(4) Opinion letters on dual-purpose IRAs, per plan document new or
amended
$4,500
(5) Assumption of sponsorship of an approved prototype IRA or SEP,
without any amendment to the plan document by a new entity as
evidenced by a change of an employer identification number
$200
.03Opinion letters on master and prototype plans.
(1) Mass submitter M & P plan
(a) per basic plan document, new or amended, with one
adoption agreement
$12,000
(b) per each additionaladoption agreement
$1,000
(2) Sponsor’s word-for-word identical adoption of M & P mass
submitter’s basic plan document (or an amendment thereof), per adoption
agreement
$300
(3) Sponsor’s minor modification of M & P mass submitter’s basic plan
document, per adoption agreement
$1000
(4) Nonmass submitter M & P plan
(a) per basic plan document, new or amended, with one
adoption agreement
$12,000
(b) per each additionaladoption agreement
$9,500
(5) M & P mass submitter’s request for an opinion letter with respect to
the addition of optional provisions following issuance of a favorable
opinion letter (see section 12.03(1)(c) of Rev. Proc. 2011–49), per basic
plan document (regardless of the number of adoption agreements)
$1000
(6) Assumption of sponsorship of an approved M & P plan, without any
amendment to the plan document, by a new entity, as evidenced by a
change of employer identification number, per basic plan document
$300
(7) Mass submitter or non-mass submitter sponsor per trust document
in excess of 10
$1,000
Sec. 6
2012–1 I.R.B.239January 3, 2012

Note: If a mass submitter submits, in any 12-month period ending
January 31, more than 300 applications on behalf of word-for-word
adopters with respect to a particular adoption agreement, only the first
300 such applications will be subject to the fee; no fee will apply to
those in excess of the first 300 such applications submitted within the
12-month period.
.04Advisory letters on volume submitter plans.
(1) Volume submitter specimen plan (non mass submitter)
(a)withnooroneadoptionagreement
$12,000
(b) per additional adoption agreement
$9,500
(2) Volume submitter mass submitter specimen plan
(a)withnooroneadoptionagreement
$12,000
(b) per each additionaladoption agreement
$1,000
(3) Volume submitter specimen plan that is word-for-word identical to a
mass submitter specimen plan
$300
(4) Assumption of sponsorship of an approved volume submitter plan,
without any amendment to the plan document, by a new entity, as
evidenced by a change of employer identification number, per basic
plan document
$300
.05Determination letters
(1) If the plan is intended to satisfy a design-based safe harbor:
(a) Form 5300(Application for Determination for Employee
Benefit Plan)
$2,500
(b) Form 5307(Application for Determination for Adopters
of Master or Prototype or Volume Submitter Plans)
$300
(c) Form 5310(Application for Determination for
Terminating Plan)
$2,000
(d) Multiple employer plans (Form 5300):
(i) 2 to 10 Forms 5300 submitted
$3,000
(ii) 11 to 99 Forms 5300 submitted
$3,000
(iii) 100 to 499 Forms 5300 submitted
$15,000
(iv) Over 499 Forms 5300 submitted
$15,000
Note:In the case of a multiple employer plan that is adopted by other
employers after the initial submission, the fee would be the same as in
paragraph (1)(a) or (d) above as applicable.
(e) Multiple employer plans (Form 5310):
(i) 2 to 10 participating employers
$3,000
(ii) 11 to 99 participating employers
$3,000
(iii) 100 to 499 participating employers
$15,000
(iv) Over 499 participating employers
$15,000
Sec. 6
January 3, 20122402012–1 I.R.B.

(2) For applications filed before February 1, 2012 in the case of plans
under a five-year remedial amendment cycle (other than terminating
plans), and May 1, 2012 in the case of terminating plans and plans under
a six-year remedial amendment cycle, if the applicant is electing to
receive a determination with respect tothe average benefit test and/or any
of the general tests:
(a) Form 5300 (Application for Determination for Employee
Benefit Plan)
$4,500
(b) Form 5307 (Application for Determination for Adopters
of Master or Prototype or Volume Submitter Plans)
$1,800
(c) Form 5310 (Application for Determination for
Terminating Plan)
$4,000
(d) Multiple employer plans (Form 5300):
(i) 2 to 10 Forms 5300 submitted
$5,000
(ii) 11 to 99 Forms 5300 submitted
$5,000
(iii) 100 to 499 Forms 5300 submitted
$25,000
(iv) Over 499 Forms 5300 submitted
$25,000
Note:In the case of a multiple employer plan that is adopted by other
employers after the initial submission, the fee would be the same as in
paragraph (2)(a) or (d) above as applicable.
(e) Multiple employer plans (Form 5310):
(i) 2 to 10 participating employers
$5,000
(ii) 11 to 99 participating employers
$5,000
(iii) 100 to 499 participating employers
$25,000
(iv) Over 499 participating employers
$25,000
Note: Effective for applications filed on or after February 1, 2012, in
the case of plans under a five-yearremedial amendment cycle (other
than terminating plans), and May1, 2012, in the case of terminating
plans and plans under a six-year remedial amendment cycle, the Service’s
review of a plan filed for a determination letter will not consider and
a determination letter generally may not be relied on with respect to
whether the plan satisfies the requirements of section 401(a)(4) or (26) or
section 410(b). See Rev. Proc. 2012–6.
(3) Group trusts contemplated by Rev. Rul. 81–100, 1981–1 C.B. 326,
Rev. Rul. 2004–67, 2004–2 C.B. 28, Rev. Rul. 2011–1, 2011–2 I.R.B.
251. Form 5316 is available for group trust submissions.
$1,000
EXEMPT ORGANIZATIONS USER FEES
.06Letter rulings.
(1) Request for approval of a qualified subsidiary related to a § 501(c)(25)
organization.
$2,250
(2) All other letter rulings
$10,000
.07Determination letters and requests for group exemption letters
Sec. 6
2012–1 I.R.B.241January 3, 2012

(1) Application (whether an initial application or an application for
reinstatement) for exemption under § 501 or § 521 from organizations
(other than pension, profit-sharing, and stock bonus plans described
in § 401) that have had annual gross receipts averaging not more than
$10,000 during the preceding four years, or new organizations that
anticipate gross receipts averagingnot more than $10,000 during the
first four years.
$400
Note:Organizations seeking this reduced fee must sign a certification
with their application that the receipts are or will be not more than the
indicated amounts.
(2) Application (whether an initial application or an application for
reinstatement) for exemption from organizations otherwise described
in paragraph (1) of this section 6.07 whose actual or anticipated gross
receipts exceed the $10,000 average annually.
$850
Note:If an organization that is already recognized as exempt under
§ 501(c) seeks reclassification underanother subparagraph of § 501(c),
a new user fee will be charged whether or not a new application is
required. An additional fee applies to organizations that seek recognition
of exemption under § 501(c)(4) (unless requested at the time of the
§ 501(c)(3) application) for a period for which they do not qualify for
exemption under § 501(c)(3) becausetheir application was filed late and
they do not qualify for relief under § 301.9100–1.
(3) Group Exemption letters
$3,000
Note:An additional user fee under (1) or (2) above is also required when
a central organization submits an initial application for exemption with
its request for a group exemption letter.
(4) Canadian registered charitiesNone
In accordance with the income tax treaty between the United States and
Canada, Canadian registered charities are automatically recognized as
exempt under § 501(c)(3) without filing an application for exemption.
For details, see Notice 99–47, 1999–2 C.B. 391. Therefore, no user fee
is required when a Canadian registered charity submits all or part of a
Form 1023 or other written request to be listed in Publication 78, or for a
determination on its private foundation status.
(5) Application for reinstatement of tax-exempt status postmarked
no later than December 31, 2012, by an organization eligible for the
transitional relief described in Notice 2011–34, 2011–25 I.R.B. 882 and
Revenue Procedure 2011–36, 2011–24 I.R.B. 915.
$100
.08Summary of exempt organization fees
This table summarizes the various types of exempt organization issues, indicates the office of jurisdiction for each type, and
lists the applicable user fee. Reduced feesmay be applicable in certain instances.
ISSUETECHNICAL OFFICEUSER FEE
Qualified subsidiaries of § 501(c)(25) organizations
$2,250
Section 514(b)(3) Neighborhood Land Use Rule
None
Section 4943(c)(7) extensions of disposal period
$10,000
Section 6104(d)(4) harassment campaign letter
Rulings
None
Sec. 6
January 3, 20122422012–1 I.R.B.

ISSUEDETERMINATIONS OFFICEUSER FEE
Accounting method changes (Form 3115)
$275
Note:No user fee is charged if the method described
in Rev. Proc. 2002–9, 2002–1 C.B. 327, is used.
Taxpayers complying timely with Rev. Proc.
2002–9 will be deemed to have obtained the consent
of the Commissioner of the Internal Revenue to
change their method of accounting
Accounting period changes (Form 1128)
$350
Note:No user fee is charged if the procedure
described in Rev. Proc. 85–58, 1985–2 C.B. 740, is
used by timely filing the appropriate information
return, or if the procedure described in Rev. Proc.
76–10, 1976–1 C.B. 548, for organizations with
group exemptions is followed.
Application (whether an initial application or
application for reinstatement) for recognition of
exemption
$850
Reduced user fee for organizations described in
section 6.07(1)
$400
Group exemption letters
$3,000
Confirmation of exemption (to replace lost exempt
status letter, and to reflect name and address
changes)
None
Reclassification of private foundation status,
including operating foundation status described
in § 4942(j)(3) and exempt operating foundation
status described in § 4940(d); a determination
that a public charity is described in § 509(a)(3)(i),
(ii), or (iii), including whether or not a Type III
supporting organization is functionally integrated;
or reclassification of foundation status, including
voluntary requests from public charities for private
foundation status and voluntary requests from public
charities to change from one public charity status to
another public charitystatus (Form 8940).
$400
Regulations § 301.9100 relief in connection with
applications for recognition of exemption
None
Section 507 terminations – advance ruling under
§ 507(b)(1)(B) and notice under § 507(a)(1) or
507(b)(1)(B)
$400
Section 4942(g)(2) set asides – advance approval
(Form 8940)
$1000
Section 4945 advance approval of organization’s
grant making procedures (Form 8940)
$1000
Section 4945(f) advance approval of voter
registration activities (Form 8940)
$1000
Sec. 6
2012–1 I.R.B.243January 3, 2012

ISSUEDETERMINATIONS OFFICEUSER FEE
Section 6033 annual information return filing
requirements (Form 8940)
$400
Unusual grants to certain organizations under
§§ 170(b)(1)(A)(vi) and 509(a)(2) (Form 8940)
$400
SECTION 7. MAILING ADDRESS
FOR REQUESTING LETTER
RULINGS, DETERMINATION
LETTERS, ETC.
.01Matters handled by EP or EO Tech-
nical.Requestsshouldbemailedtotheap-
propriate address set forth in this section
7.01.
(1)Employee plans letter rulings under
Rev. Procs. 79–62, 87–50, 90–49, 94–42,
2000–41, 2004–15, 2004–44, 2007–37, or
2012–4:
Internal Revenue Service
Attention: EP Letter Rulings
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
(2)Employee plans opinion letters un-
der Rev. Procs. 87–50, 97–29, 98–59, and
2010–48:
Internal Revenue Service
Attention: EP Opinion Letters
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
(3)Employee plans administrative
scrutiny determinations under Rev. Proc.
93–41:
Internal Revenue Service
Attention: Administrative Scrutiny
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
(4)Exempt organizations letter rulings:
Internal Revenue Service
Attention: EO Letter Rulings
P.O. Box 27720
McPherson Station
Washington, D.C. 20038
Note:Hand delivered requests must be
marked RULING REQUEST SUBMIS-
SION. The delivery should be made to the
following address 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: [for Employee Plans,
write
“SE:T:EP:RA”for Exempt Organiza-
tions,
write“SE:T:EO:RA]
1111 Constitution Avenue, N.W. —
NCA
Washington, D.C. 20224
.02Matters handled by EP or EO De-
terminations Office.
(1) The following types of requests
and applications are handled by the EP
or EO Determinations Office and should
be sent to the Internal Revenue Service
Center in Covington, Kentucky, at the
address shown below: (a) requests for de-
termination letters on the qualified status
of employee plans under § 401, 403(a),
or 409, and the exempt status of any re-
lated trust under § 501; (b) applications
for recognition of tax exemption on Form
1023, Form 1024 and Form 1028; (c) re-
quests for determination letters submitted
with Form 8940; (d) requests for changes
in accounting method or period; and (e)
other applications for recognition of qual-
ification or exemption. The address is:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012–0192
(2) The following types of requests and
applications are handled by the EP De-
terminations Office and should be sent to
the Internal Revenue Service at the address
shown below: (a) requests for master and
prototype opinion letters and for volume
submitter advisory letters on the form of
pre-approved employee plans under § 401
or 403(a); and (b) the exempt status of any
related trust under § 501. The address is:
Internal Revenue Service
P.O. Box 2508
Rm. 5106
Cincinnati, OH 45201
(3) Determinations and requests not
subject to a user fee are handled by the
EO Determinations Office and should be
sent to the Internal Revenue Service at the
address shown below:
Internal Revenue Service
P.O. Box 2508
Rm. 4024
Cincinnati, OH 45201
(4) Applications shipped by Express
Mail or a delivery service for all of the
aboveexcept for pre-approved employee
plansshould be sent to:
Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011
Applications shipped by Express Mail
or a delivery service forpre-approved
employee plansshould be sent to:
Internal Revenue Service
550 Main Street
Room 5106
Cincinnati, OH 45202
SECTION 8. REQUESTS
INVOLVING MULTIPLE OFFICES,
FEE CATEGORIES, ISSUES,
TRANSACTIONS, OR ENTITIES
.01Requests involving several offices.
If a request dealing with only one transac-
tion involves more than one of the offices
within Headquarters (for example, one
issue is under the jurisdiction of the As-
sociate Chief Counsel (Income Tax &
Accounting) and another issue is under
the jurisdiction of the Commissioner, Tax
Sec. 6
January 3, 20122442012–1 I.R.B.

Exempt and Government Entities Divi-
sion), the taxpayer is only responsible for
the payment of the single highest fee that
could be charged by any of the offices
involved. See Rev. Proc. 2012–1, this
Bulletin, for the user fees applicable to is-
sues 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 (Passthroughs & Special
Industries), the Associate Chief Coun-
sel (Procedure and Administration), the
Associate Chief Counsel (International)
or the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government
Entities).
.02Requests involving several fee cat-
egories. If a request dealing with only
one transaction involves more than one fee
category, the taxpayer only is responsible
for payment of the single highest fee that
could be charged for any of the categories
involved.
.03Requests involving several issues.
A request is treated as one request if: (1)
the request deals with only one transaction
but involves several issues; (2) the request
is one for a change in accounting method
dealing with only one item or sub-method
of accounting but involves several issues;
(3) the request is one for a change in ac-
countingperioddealingwithonlyoneitem
but involves several issues. In such in-
stances, only one fee applies, namely the
fee that applies to the particular category
or subcategory involved. The addition of a
new issue relating to the same transaction
will not result in an additional fee, unless
the issue places the transaction in a higher
fee category.
.04Requests involving several unre-
lated transactions. In situations where:
(1) a request involves several unrelated
transactions; (2) a request for a change in
accounting method involves several unre-
lated items or sub-methods of accounting;
or (3) a request for a change in accounting
period involves several unrelated items,
each transaction or item is treated as a sep-
arate request. As a result, a separate fee
will apply for each unrelated transaction
or item. An additional fee will apply if the
request is changed by the addition of an
unrelated transaction or item not contained
in the initial submission.
.05Requests for separate letter rulings
for several entities. Each entity involved
in a transaction that desires a separate let-
ter ruling in its own name (for example, an
exempt hospital reorganization) must pay
a separate fee. Payment of a separate fee
is required regardless of whether the trans-
action or transactions may be viewed as re-
lated.
SECTION 9. PAYMENT OF FEE
.01Method of payment. Each request
to the Service for a letter ruling, determi-
nation letter, opinion letter, etc., must be
accompanied by a check or money order,
payable to the United States Treasury, in
the appropriate amount. Taxpayers should
not send cash.
Your check may be converted to an
electronic fund transfer. “Electronic fund
transfer” is the term used to refer to the
process in which we electronicallyinstruct
your financial institution to transfer funds
from your account to our account, rather
than processing your check. By sending
your completed, signed check to us, you
authorize us to copy your check and to use
the account information from your check
to make an electronic fund transfer from
your account for the same amount as the
check. If the electronic fund transfer can-
not be processed for technical reasons, you
authorize us to process the copy of your
check.
The electronic fund transfer from your
account will usually occur within 24 hours,
which is faster than a check is normally
processed. Therefore, make sure there are
sufficient funds available in your checking
account when you send us your check. You
will not receive your check back from your
financial institution.
.02Transmittal forms. Form 8717,
User Fee for Employee Plan Determi-
nation, Opinion, and Advisory Letter
Request, and Form 8718,User Fee for Ex-
empt Organization Determination Letter
Request, are intended to be used as at-
tachments to certain determination letter,
opinion letter and advisory letter applica-
tions. Space is reserved for the attachment
of the applicable user fee check or money
order. No similar form has been designed
to be used in connection with requests for
letter rulings or administrative scrutiny
determinations.
.03Effect of nonpayment or payment of
incorrect amount. Itwillbethegeneral
practice of the Service that:
(1) The respective offices within the
Service that are responsible for issuing let-
ter rulings, determination letters, etc., will
exercise discretion in deciding whether to
immediately return submissions that are
not accompanied by a properly completed
check or money order or that are accom-
panied by a check or money order for less
than the correct amount. In those instances
where the submission is not immediately
returned, the requester 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 submission will then be re-
turned. However, the respective offices of
the Service, in their discretion, may defer
substantive consideration of a submission
until proper payment has been received.
(2) An application for a determination
letter will not be returned merely because
Form 8717 or Form 8718 was not attached.
(3) The return of a submission to the
requester may adversely affect substantive
rights if the submission is not perfected
and resubmitted to the Service within 30
days of the date of the cover letter return-
ing the submission. Examples of this are:
(a) where an application for a determina-
tion letter is submitted prior to the expi-
ration of the remedial amendment period
under § 401(b) and is returned because no
user fee was attached, the submission will
be timely if it is resubmitted by the expi-
ration of the remedial amendment period
or, if later, within 30 days after the appli-
cation was returned; and (b) where an ap-
plication for exemption under § 501(c)(3)
is submitted before expiration of the pe-
riod provided by § 1.508 1(a)(2) and is re-
turned because no user fee was attached,
the submission will be timely if it is resub-
mitted before expiration of the period pro-
vided by § 1.508 1(a)(2) or within 30 days,
whichever is later.
(4) If a check or money order is for
more than the correct amount, the submis-
sion will be accepted and the amount of the
excess payment will be returned to the re-
quester.
SECTION 10. REFUNDS
.01General rule. In general, the fee
will not be refundedunless the Service
Sec. 10
2012–1 I.R.B.245January 3, 2012

declines to rule or make a determination on
all issuesfor which a ruling or determina-
tion letter is requested.
.02Examples.
(1) The following situations are exam-
ples in which the feewill notbe refunded:
(a) The request for a letter ruling, de-
termination letter, etc., is withdrawn at any
time subsequent to its receipt by the Ser-
vice, unless the only reason for withdrawal
is that the Service has advised the requester
that a higher user fee than was sent with
the request is applicable and the requester
is unwilling to pay the higher fee. For ex-
ample, no fee will be refunded where the
taxpayer has been advised that a proposed
adverse ruling is contemplated and subse-
quently withdraws its submission.
(b) The request is procedurally defi-
cient, although accompanied by the proper
fee or an overpayment, and it is not timely
perfected. When there is a failure to timely
perfect the request, the case will be consid-
ered closed and the failure to perfect will
be treated as a withdrawal for purposes of
this revenue procedure. An exemption ap-
plication that is not substantially complete
is considered a procedurally deficient re-
quest for a letter ruling or a determination
letter on exempt status.
(c) In the case of a request for a letter
ruling, if the case has been closed by the
Service because essential information has
not been submitted timely, the request may
be reopened and treated as a new request,
but the requester must pay another user
fee before the case can be reopened.See,
section 11.04(5) of Rev. Proc. 2012–4.
(d) A letter ruling, determination let-
ter, etc., is revoked in whole or in part at
the initiative of the Service. The fee paid
at the time the original letter ruling, deter-
mination 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 requester asserts that a letter
ruling the requester received covering a
single issue is erroneous or not responsive
(other than an issue on which the Service
has declined to rule) and requests recon-
sideration. The Service, upon reconsider-
ation, does not agree that the letter ruling
is erroneous or is not responsive. The fee
accompanying the request for reconsidera-
tion will not be refunded.
(g) The situation is the same as de-
scribed in subparagraph (f) of this section
10.02(1) except that the letter ruling cov-
ered several unrelated transactions. The
Service, upon reconsideration, does not
agree with the requester that the letter rul-
ing 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 reconsidera-
tion will not be refunded except to the ex-
tent applicable to the transaction for which
the Service agrees the letter ruling was in
error.
(h) The request is for a supplemental
letter ruling, determination letter, etc., con-
cerning a change in facts (whether signif-
icant or not) relating to the transaction on
which the Service ruled.
(i) The request is for reconsideration
of an adverse or partially adverse letter rul-
ing or a final adverse determination letter,
and the taxpayer submits arguments and
authorities not submitted before the origi-
nal letter ruling or determination letter was
issued.
(2) The following situations are exam-
ples in which the user feewillbe refunded:
(a) In a situation to which section
10.02(1)(i) of this revenue procedure does
not apply, the taxpayer asserts that a let-
ter ruling the taxpayer received covering
a single issue is erroneous or is not re-
sponsive (other than an issue on which
the Service declined to rule) and requests
reconsideration. Upon reconsideration,
the Service 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
10.02(1)(i) of this revenue procedure does
not apply, the requester requests a supple-
mental 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 accompany-
ing 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 con-
nection with the revocation in whole or
in part, of a previously issued letter rul-
ing, determination letter, etc. The fee
accompanying the request for relief will
be refunded.
(d) In a situation to which section
10.02(1)(e) of this revenue procedure
applies, the requester requests reconsider-
ation 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 re-
funded.
SECTION 11. REQUEST FOR
RECONSIDERATION OF USER FEE
A taxpayer that believes the user fee
charged by the Service for its request for
a letter ruling, determination letter, etc.,
is either not applicable or incorrect and
wishes to receive a refund of all or part
of the amount paid (see section 10 of this
revenue procedure) may request reconsid-
eration and, if desired, the opportunity for
an oral discussion by sending a letter to the
Internal Revenue Service at the applicable
Post Office Box or other address given
in section 7 of this revenue procedure.
Both the incoming envelope and the letter
requesting such reconsideration should
be prominently marked “USER FEE RE-
CONSIDERATION REQUEST.” No user
fee is required for these requests. The
request should be marked for the attention
of the appropriate unit as listed in the table
below
Sec. 10
January 3, 20122462012–1 I.R.B.

If the matter involves primarily:Mark for the attention of:
Employee plans letter ruling requests and all other employee
plans matters handled by EP Technical
Employee Plans Technical
Exempt organizations letter ruling requestsExempt Organizations Technical
Employee plans determination letter requests and opinion letter
and advisory letter requests pursuant to Rev. Proc. 2011–49
Manager, EP Determinations Quality Assurance
Exempt organizations determination letter requestsManager, EO Determinations Quality Assurance
SECTION 12. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2011–8 is superseded.
SECTION 13. EFFECTIVE DATE
This revenue procedure is generally ef-
fective February 1, 2012, except as oth-
erwise noted. The Exempt Organization
User Fees set forth in sections 6.06, 6.07
and 6.08 are effective January 3, 2012.
SECTION 14. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Office
of Management and Budget in accor-
dance 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 section 6.07.
This information is required to substantiate
that a taxpayer or an exempt organization
seeking to pay a reduced user fee with
respect to a request for a determination
letter is entitled to pay the reduced fee;
to identify the user fee category and cor-
responding fee required to be paid with
respect to determination letter requests;
to request reconsideration of the user fee
charged by the Service and, in connection
with such a request, to indicate whether an
oral discussion is desired. This informa-
tion will be used to enable the Service to
determine whether the taxpayer or exempt
organization is entitled to pay a reduced
user fee, to ascertain whether reconsidera-
tion of the user fee is being requested and,
if it is being requested, whether an oral
discussion is requested. The collections
of information are voluntary, to obtain a
benefit. The likely respondents are in-
dividuals, businesses or other for-profit
institutions, nonprofit institutions, and
small businesses or organizations.
The estimated total annual reporting
and/or recordkeeping burden is 300 hours.
The estimated annual burden per re-
spondent/recordkeeper varies from one
hour to ten hours, depending on individual
circumstances, with an estimated average
of three hours. The estimated number of
respondents and/or recordkeepers is 90
(requests for reduced fees) and 10 (re-
quests for reconsideration of fee).
The estimated annual frequency of re-
sponses 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 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this rev-
enue procedure is Kathleen Herrmann
oftheEmployeePlans,TaxExempt
and Government Entities Division. For
further information regarding employee
plans matters in this revenue procedure,
please contact the Employee Plans’
taxpayer assistance telephone service
877–829–5500 (a toll-free number)
between the hours of 8:30 a.m. and
4:30 p.m., Eastern time, Monday
through Friday. For employee plans
matters, please e-mail Ms. Herrmann at
RetirementPlanQuestions@irs.gov.For
exempt organization matters, please e-mail
Mr. Dave Rifkin or Mr. Matt Perdoni at
tege.eo@irs.gov. Please put “Question
about Rev. Proc. 2012–8” in the subject
line.
APPENDIX
Following is a list of revenue proce-
dures requiring payment of a user fee or an
administrative scrutiny determination user
fee.
A.Procedures applicable to both
Employee Plans and Exempt
Organizations
Rev. Proc. 2012–4, this Bulletin, pro-
vides procedures for issuing letter rulings,
information letters, etc., on matters relat-
ing to matters under the jurisdiction of the
Commissioner, Tax Exempt and Govern-
ment Entities Division.
B.Procedures applicable to Employee
Plans matters other than actuarial matters
Rev. Proc. 75–26, 1975–1 C.B. 722,
sets forth the general procedures of the
Internal Revenue Service for the process-
ing of applications for exemption under
§ 4975(c)(2).
Rev. Proc. 87–50, 1987–2 C.B. 647, as
modified by Rev. Proc. 91–44, Rev. Proc.
92–38, Rev. Proc. 2002–10, 2002–1 C.B.
401, and Rev. Proc 2010–48, 2010–50
IRB 828 sets forth the procedures of the
Service relating to the issuance of rulings
and opinion letters with respect to the
establishment of individual retirement ac-
counts and annuities (IRAs) under § 408,
the entitlement to exemption of related
trusts or custodial accounts under § 408(e),
and the acceptability of the form of proto-
type simplified employee pension (SEP)
agreements under §§ 408(k) and 415.
Rev. Proc. 92–24, 1992–1 C.B. 739,
provides procedures for requesting deter-
mination letters on the effect on a plan’s
qualified status under § 401(a) of the Code
of plan language that permits, pursuant to
2012–1 I.R.B.247January 3, 2012

§ 420, the transfer of assets in a defined
benefit plan to a health benefits account
described in § 401(h).
Rev. Proc. 92–38, 1992–1 C.B. 859,
provides notice that individual retirement
arrangement trusts, custodial account
agreements, and annuity contracts must
be amended to provide for the required
distribution rules in § 408(a)(6) or (b)(3)
of the Code. In addition, Rev. Proc.
92–38 modifies the guidance in Rev. Proc.
87–50 with regard to opinion letters issued
to sponsoring organizations, including
mass submitters and sponsors of prototype
IRAs.
Rev. Proc. 93–41, 1993–2 C.B. 536,
sets forth the procedures of the Service re-
lating to the issuance of an administrative
scrutiny determination as to whether a sep-
arate line of business satisfies the require-
ment of administrative scrutiny within the
meaning of § 1.414(r)–6.
Rev. Proc. 97–29, 1997–1 C.B. 698,
describes model amendments for SIMPLE
IRAs; guidance to drafters of prototype
SIMPLE IRAs on obtaining opinion let-
ters; permissive amendments to sponsors
of nonSIMPLE IRAs; the opening of a pro-
totype program for SIMPLE IRA Plans;
and transitional relief for users of SIMPLE
IRAs and SIMPLE IRA Plans that have not
been approved by the Service.
Rev. Proc. 98–59, 1998–2 C.B. 727, as
modified by Rev. Proc. 2010–48, 2010–50
I.R.B. 828 provides guidance on obtain-
ing opinion letters to drafters of prototype
Roth IRAs, and provides transitional relief
for users of Roth IRAs that have not been
approved by the Internal Revenue Service.
Rev. Proc. 2003–16, 2003–1 C.B. 359,
sets forth guidelines for the implementa-
tion of the provision for a waiver of the
60–day rollover period described in sec-
tion 644 of EGTRRA.
Rev. Proc. 2011–49, 2011–44 I.R.B.
608, contains the Service’s master and pro-
totype (M&P) and volume submitter pro-
gram procedures for the pre-approval of
pension, profit-sharing and annuity plans.
Rev. Proc. 2012–6, this Bulletin, pro-
vides procedures for issuing determination
letters on the qualified status of employee
plans under §§ 401(a), 403(a), 409, and
4975(e)(7).
C.Procedures applicable to Employee
Plans actuarial matters
Rev. Proc. 79–62, 1979–2 C.B. 576,
outlines the procedure by which a plan
sponsor or administrator may request a
determination that a plan amendment is
reasonable and provides for onlyde min-
imisincreases in plan liabilities in accor-
dance with § 412(f)(2)(A) of the Code and
§ 304(b)(2)(A) of ERISA.
Rev. Proc. 90–49, 1990 2 C.B. 620,
modifies and replaces Rev. Proc. 89–35,
1989–1 C.B. 917, in order to extend the ef-
fective date to contributions made for plan
years beginning after December 31, 1989,
to change the deadline for requesting rul-
ings under the revenue procedure, to re-
vise the information requirements for a rul-
ing request made under the revenue pro-
cedure, to furnish a worksheet for actuar-
ial computations, and to provide a special
rule under which certainde minimisnond-
eductible employer contributions to a qual-
ified defined benefit plan may be returned
to the taxpayer without a formal ruling or
disallowance from the Service.
Rev. Proc. 94–42, 1994–1 C.B. 717,
sets forth a procedure for obtaining ap-
proval of an amendment to a qualified plan
that, under § 412(c)(8), reduces the ac-
crued benefits of plan participants.
Rev. Proc. 2000–41, 2000–2 C.B. 371,
sets forth the procedure by which a plan
administrator or plan sponsor may obtain
approval of the Secretary of the Treasury
for a change in funding method as pro-
vided by § 412(c)(5) of the Code and sec-
tion 302(c)(5) of ERISA.
Rev. Proc. 2004–15, 2004–1 C.B.
490, sets forth procedures for requesting
waivers of the minimum funding standard
described in § 412(d) and the issuance of
such waivers by the office of the Director,
Employee Plans, Tax Exempt and Govern-
ment Entities Division.
Rev. Proc. 2004–44, 2004–2 C.B. 134,
outlines the procedure by which a plan ad-
ministrator or plan sponsor may request
and obtain approval for an extension of
an amortization period in accordance with
§ 412(e) of the Code and section 304(a) of
ERISA.
Rev. Proc. 2007–37, 2007–25 I.R.B.
1433, provides guidelines for requesting
letter rulings for substitute mortality tables
for certain defined benefit plans as a result
of section 102 and 112 of the Pension Pro-
tection Act of 2006.
D.Procedures applicable to Exempt
Organizations matters only
Rev. Proc. 80–27, 1980–1 C.B. 677,
as modified by Rev. Proc. 96–40, 1996–2
C.B. 301, provides procedures under
which recognition of exemption from fed-
eral income tax under § 501(c) may be
obtained on a group basis for subordinate
organizations affiliated with and under the
general supervision or control of a central
organization. This procedure relieves each
of the subordinates covered by a group
exemption letter from filing its own appli-
cation for recognition of exemption.
Rev. Proc. 2012–9, the next Bulletin,
will set forth any applicable revised proce-
dures with regard to applications for recog-
nition of exemption from federal income
tax under §§ 501 and 521.
January 3, 20122482012–1 I.R.B.

Part IV. Items o
fGeneralInterest
Cumulative Li
st of
Announcement
sRelating
to Section 742
8(c) Validation
of Certain Co
ntributions
Made During P
endency
of Declarat
ory Judgment
Proceeding
sfromJanuary1,
2011 throu
gh December 31,
2011
Announcem
ent 2012–1
The follo
wing is a cumulative listing of
names of o
rganizations that are presently
challeng
ing, under section 7428 of the In-
ternal Re
venue Code, the revocation of
their sta
tus as organizations entitled to re-
ceive ded
uctible contributions in declara-
tory jud
gment suits in the Tax Court, the
United S
tates District Court for the District
of Colum
bia, or the United States Court of
Federal
Claims. The purpose of this an-
nounce
ment is to inform potential donors
to thes
e organizations of the protection un-
der 742
8(c) for certain contributions made
during
the litigation period.
Protec
tion under section 7428(c) of the
Code be
gins on the date that the notice
of revo
cation is published in the Internal
Reven
ue Bulletin and ends on the date
on whi
ch a court first determines that an
organ
izationisnotdescribedinsection
170(c
)(2), as more particularly set forth in
secti
on 7428(c)(1). In the case of indi-
vidu
al contributors, the maximum amount
of co
ntributions protected during this pe-
riod
is limited to $1,000.00, with a hus-
band
and wife being treated as one contrib-
utor
. This protection is not extended to any
ind
ividual who was responsible, in whole
or i
npart,fortheactsoromissionsofthe
org
anization that were the basis for the
rev
ocation. This protection also applies
(bu
t without limitation as to amount) to or-
gan
izations described in section 170(c)(2)
wh
ich are exempt from tax under section
50
1(a). If the organization ultimately pre-
va
ils in its declaratory judgment suit, de-
du
ctibility of contributions would be sub-
je
ct to the normal limitations set forth un-
d
er section 170.
I. Notice of Di
sposition of Declaratory
Judgment Proc
eedings under Section
7428
This announce
ment serves notice to
donors that on
September 9, 2010, the
United States
Tax Court entered a stipu-
lated decisi
on that the organization listed
below is a pri
vate foundation described
inI.R.C.§50
9(a). Accordingly, the
organizatio
n continues to be recognized
as an organi
zation described in section
501(c)(3) a
nd exempt from tax under sec-
tion 501(a)
.
Fisherman’
s Hospital
Marathon, F
L
II. Notice o
f Disposition of Declaratory
Judgment P
roceedings under Section
7428
This annou
ncement serves notice to
donors tha
t on March 20, 2009, the United
States Tax
Court entered a stipulated de-
cision tha
t the organization listed below is
aprivate
foundation described in I .R .C
. § 509(a)
. Accordingly, the organization
continue
s to be recognized as an organi-
zation de
scribedinsection501(c)(3)and
exempt f
rom tax under section 501(a).
Financia
l Policy Forum
Washing
ton, DC
III. Not
ice of Disposition of Declaratory
Judgmen
t Proceedings under Section
7428
This ann
ouncement serves notice to
donors t
hat on April 9, 2010, the United
States
Tax Court entered a stipulated de-
cision
that the organization listed below is
apriva
te foundation described in I .R .C
. § 509(
a). Accordingly, the organization
contin
ues to be recognized as an organi-
zation
describedinsection501(c)(3)and
exemp
t from tax under section 501(a).
Love Q
uest Children’s Foundation
Cinci
nnati, OH
IV. No
tice of Disposition of Declaratory
Judgm
ent Proceedings under Section
7428
This a
nnouncement serves notice to
donor
s that on May 27, 2011, the United
States Tax Cou
rt entered a stipulated deci-
sion that that
the organization listed below
is qualified a
s an organization described in
section 501(c
)(3) and is exempt from tax
under section
501(a).
Sea of Sound Productions, Inc.
Midlothian, VA
V. Notice of Disposition of Declaratory
Judgment Proceedings under Section
7428
This announc
ement serves notice to
donors that
on April 21, 2009, the United
States Tax C
ourt dismissed the 7428 ac-
tion and det
ermined that the organization
listed belo
w is not recognized as an organ-
ization des
cribed in section 501(c)(3), is
not exempt
from tax under section 501(a),
and is not e
ligible to receive deductible
charitabl
e contributions as an organization
described
in section 170(c)(2).
America’s Faith Centered Education, Inc.
Sandy, UT
VI. Notice of Disposition of Declaratory
Judgment Proceedings under Section
7428
This anno
uncement serves notice to
donors th
at on January 6, 2009, the United
States T
ax Court entered a stipulated deci-
sion tha
t that the organization listed below
is not re
cognized as an organization de-
scribed
in section 501(c)(3), is not exempt
from tax
under section 501(a), and is not
eligibl
e to receive deductible charitable
contri
butions as an organization described
in sect
ion 170(c)(2).
Bear Soldier Industries
Bismarck, ND
VII. Notice of Disposition of Declaratory
Judgment Proceedings under Section
7428
This an
nouncement serves notice to
donor
s that on May 13, 2011, the United
State
s Tax Court entered a stipulated de-
cisio
n that effective October 1, 2004, the
organ
ization listed below is not qualified
as an o
rganization described in section
501(
c)(3) and is not exempt from taxation
unde
r section 501(a).
2012–1 I.R.B.249January 3, 2012

Chadwell-Townsend Private Foundation
Bellbrook, OH
VIII. Notice of Disposition of
Declaratory Judgment Proceedings
under Section 7428
This announcement serves notice to
donors that on February 28, 2011, the
United States Tax Court entered stipulated
decision. Effective January 1, 2003, the
organization listed below is not recognized
as an organization described in section
501(c)(3), is not exempt from tax under
section 501(a), and is not an organization
describedinsection170(c)(2).
DPA Alliance Corporation
Provo, UT
IX. Notice of Disposition of Declaratory
Judgment Proceedings under Section
7428
This announcement serves notice to
donors that on June 24, 2010, the United
States District Court of the District of
Columbia entered stipulation dismissing
the case involving the below-referenced
organization. The organization listed be-
low is not recognized as an organization
describedinsection501(c)(3)andisnot
exempt from tax under section 501(a) and
is not an organization described in section
170(c)(2).
Harbour Credit Counseling Services, Inc.
Virginia Beach, VA
X. Notice of Disposition of Declaratory
Judgment Proceedings under Section
7428
This announcement serves notice to
donors that on March 22, 2011, the United
States Tax Court entered a stipulated de-
cision. Effective January 1, 2004, the
organization listed below is not qualified
as an organization described in I.R.C.
§ 501(c)(3), is not exempt from taxation
under I.R.C. § 501(a), and is not an organ-
ization described in I.R.C. § 170(c)(2).
HelpAmerica, Inc
Montgomery Village, MD
XI. Notice of Disposition of Declaratory
Judgment Proceedings under Section
7428
This announcement serves notice to
donors that on May 12, 2010, the United
States District Court of the District of
Columbia entered stipulation dismissing
the case involving the below-referenced
organization with prejudice. The organ-
ization listed below is not recognized
as an organization described in section
501(c)(3) and is not exempt from tax under
section 501(a) and is not an organization
described in section 170(c)(2).
National Credit Counseling Services, Inc.
Orlando, FL
XII. Notice of Disposition of Declaratory
Judgment Proceedings under Section
7428
This announcement serves notice to
donors that on April 22, 2010, the United
States Tax Court entered stipulated de-
cision. Effective January 1, 2003, the
organization listed below is not recognized
as an organization described in section
501(c)(3), is not exempt from taxation
under section 501(a), and is not an organi-
zation described in section 170(c)(2).
United American Housing & Education
Foundation
Houston, TX
XIII. Notice of Disposition of
Declaratory Judgment Proceedings
under Section 7428
This announcement serves notice to
donors that on January 20, 2010, the
United States Tax Court entered stipulated
decision. Effective January 1, 2002, the
organization listed below is not recognized
as an organization described in section
501(c)(3), is not exempt from taxation
under section 501(a), and is not an organi-
zation described in section 170(c)(2).
Wasatch Homes Charitable Foundation
Draper, UT
XIV. Notice of Disposition of
Declaratory Judgment Proceedings
under Section 7428
This announcement serves notice to
donors that on March 3, 2011, the United
States Tax Court entered stipulated de-
cision. Effective January 1, 1998, the
organization listed below is not recognized
as an organization described in section
501(c)(3), is not exempt from taxation
under section 501(a), and is not an organi-
zation described in section 170(c)(2).
Xelan Foundation AKA Significance
Foundation
Tampa, FL
XV. Notice of Disposition of Declaratory
Judgment Proceedings under Section
7428
The organizations listed below continue
to be involved in a pending declaratory
judgment suit under section 7428 of the
Code, challenging revocation of its sta-
tus as an eligible donee under section
170(c)(2). The organizations filed suit
on the dates indicatedbelow. Protection
under section 7428(c) begins on the date
indicated ( ).
Credit Counseling Bureau of San Diego
County, Inc.,
San Diego, CA
DPA Alliance Corporation
Suit Filed: June 1, 2010
(Effectivedate:January1,2003)........................... Provo,UT
Exegetical Institute, Inc.
Suit Filed: September 28, 2010
(Effectivedate:January1,2003)........................... Kingsland,GA
January 3, 20122502012–1 I.R.B.

First Step, Inc.
Suit Filed: December 3, 2010
(Effectivedate:January1,2005)........................... Manahawkin,NJ
The Hope and Dreams Foundation
Suit Filed: November 8, 2010
(Effective date: December 22, 2000)........................ PaloAlto,CA
Nat Turner Legal Defense Fund
Suit Filed: February 18, 2009
(Effectivedate:January1,2005)........................... Garland,TX
Northwest Conservation Stewardship Fund
Suit Filed: March 28, 2011
(December 31, 2003)..................................... Seattle,WA
Partners in Charity, Inc.
Suit Filed: January 19, 2011
(Effective date: December 31, 2002)........................ W.Dundee,IL
2012–1 I.R.B.251January 3, 2012

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
January 3, 2012i2012–1 I.R.B.

Numerical Finding List
1
Bulletin 2012–1
Announcements:
2012-1, 2012-1 I.R.B.249
Revenue Procedures:
2012-1, 2012-1 I.R.B.1
2012-2, 2012-1 I.R.B.92
2012-3, 2012-1 I.R.B.113
2012-4, 2012-1 I.R.B.125
2012-5, 2012-1 I.R.B.169
2012-6, 2012-1 I.R.B.197
2012-7, 2012-1 I.R.B.232
2012-8, 2012-1 I.R.B.235
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2011–27 through 2011–52 is in Internal Revenue Bulletin
2011–52, dated December 27, 2011.
2012–1 I.R.B.iiJanuary 3, 2012

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2012–1
Revenue Procedures:
2011-1
Superseded by
Rev. Proc. 2012-1, 2012-1 I.R.B.1
2011-2
Superseded by
Rev. Proc. 2012-2, 2012-1 I.R.B.92
2011-3
Superseded by
Rev. Proc. 2012-3, 2012-1 I.R.B.113
2011-4
Superseded by
Rev. Proc. 2012-4, 2012-1 I.R.B.125
2011-5
Superseded by
Rev. Proc. 2012-5, 2012-1 I.R.B.169
2011-6
Superseded by
Rev. Proc. 2012-6, 2012-1 I.R.B.197
2011-7
Superseded by
Rev. Proc. 2012-7, 2012-1 I.R.B.232
2011-8
Superseded by
Rev. Proc. 2012-8, 2012-1 I.R.B.235
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2011–27 through 2011–52 is in Internal Revenue Bulletin 2011–52, dated December 27,
2011.
January 3, 2012iii2012–1 I.R.B.

INTERNAL REVENUE BULLETIN
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tendent of Documents when their subscriptions must be renewed.
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