Form REV.PROC.2000-1 REv. Proc. 2000-1

Internal Revenue

bulletin

Bulletin No. 2000–1
January 3, 2000

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. 2000–4, page 115.
Rulings and information letters; issuance procedures. Revised procedures are provided for furnishing ruling letters, information letters, etc., on matters relating to
sections of the Code currently under the jurisdiction of the
Office of the Commissioner, Tax Exempt and Government
Entities Division. Rev. Proc. 99–4 superseded.

Rev. Proc. 2000–5 page 158.
Technical advice. Revised procedures, in conformance
with the Internal Revenue Service Restructuring and Reform
Act of 1998, are provided for furnishing technical advice to
area managers, determinations managers, and appeals office chiefs by the Office of the Commissioner, Tax Exempt
and Government Entities Division, regarding issues in the
employee plans area (including actuarial matters) and exempt organizations area. Rev. Proc. 99–5 superseded.

Rev. Proc. 2000–6, page 187.
Employee plans determination letters. Revised procedures 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 Proc. 99–6 superseded.

Rev. Proc. 2000–8, page 230.
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, determination letters, etc., on matters under the ju-

risdiction of the Office of the Commissioner, Tax Exempt and
Government Entities Division, is provided. Rev. Proc. 99–8
superseded.

EXEMPT ORGANIZATIONS
Rev. Proc. 2000–4, page 115.
Rulings and information letters; issuance procedures.
Revised procedures are provided for furnishing ruling letters,
information letters, etc., on matters relating to sections of
the Code currently under the jurisdiction of the Office of the
Commissioner, Tax Exempt and Government Entities Division. Rev. Proc. 99–4 superseded.

Rev. Proc. 2000–5, page 158.
Technical advice. Revised procedures, in conformance
with the Internal Revenue Service Restructuring and Reform
Act of 1998, are provided for furnishing technical advice to
area managers, determinations managers, and appeals office chiefs by the Office of the Commissioner, Tax Exempt
and Government Entities Division, regarding issues in the
employee plans area (including actuarial matters) and exempt organizations area. Rev. Proc. 99–5 superseded.

Rev. Proc. 2000–8, page 230.
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, determination letters, etc., on matters under the jurisdiction of the Office of the Commissioner, Tax Exempt and
Government Entities Division, is provided. Rev. Proc. 99–8
superseded.
(Continued on page 3)

Numerical Finding List of Revenue Rulings, Revenue Procedures, Treasury Decisions, etc., published in the Bulletin from July
through December 1999 begins on page ii.
Finding List of Previously Published Items published in the Bulletin from July through December 1999 begins on page iii.
Cumulative List of Declaratory Judgment Proceedings Under Section 7428 for 1999 begins on page 242.
Index of items published in the Bulletin from July through December 1999 begins on page v.

Department of the Treasury
Internal Revenue Service

The IRS Mission
and by applying the tax law with integrity and fairness to
all.

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities

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
Conventions, 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 consolidated semiannually into
Cumulative Bulletins, which are sold on a single-copy basis.

dures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances
are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.

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

Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions, and Subpart B, Legislation 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 Rulings. Bank Secrecy Act Administrative Rulings
are issued by the Department of the Treasury’s Office of the
Assistant Secretary (Enforcement).

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.

Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

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 proce-

The first 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 first Bulletin of the succeeding semiannual period, respectively.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

2

HIGHLIGHTS
OF THIS ISSUE—Continued
ADMINISTRATIVE

appeals offices, in areas under the jurisdiction of the Associate Chief Counsel (Domestic), the Associate Chief Counsel
(Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), and the Associate Chief Counsel (International). Rev. Proc. 99–2 superseded.

Rev. Proc. 2000–1, page 4.
Letter rulings, determination letters, and information
letters issued by the Associate Chief Counsel (Domestic), Associate Chief Counsel (Employee Benefits and
Exempt Organizations), Associate Chief Counsel
(Enforcement Litigation), and Associate Chief Counsel
(International). Revised procedures are provided for issuing letter rulings, determination letters, and information letters on specific issues under the jurisdiction of the Associate
Chief Counsel (Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate
Chief Counsel (Enforcement Litigation), and the Associate
Chief Counsel (International). Rev. Proc. 99–1 superseded;
Notice 97-19 and Rev. Proc. 96-13 modified.

Rev. Proc. 2000–3, page 103.
Areas in which advance rulings will not be issued; Associate Chief Counsel (Domestic), Associate Chief Counsel (Employee Benefits and Exempt Organizations). This
procedure provides a revised list of those provisions of the
Code under the jurisdiction of the Associate Chief Counsel
(Domestic) and the Associate Chief Counsel (Employee Benefits and Exempt Organizations) relating to matters where the
Service will not issue advance rulings or determination letters.
Rev. Procs. 99–3 and 99–51 superseded.

Rev. Proc. 2000–2, page 73.

Rev. Proc. 2000–7, page 227.

Technical advice to the district directors and chiefs,
appeals offices, from the Associate Chief Counsel (Domestic), Associate Chief Counsel (Employee Benefits
and Exempt Organizations), Associate Chief Counsel
(Enforcement Litigation), and Associate Chief Counsel
(International). Revised procedures are provided for furnishing technical advice to the district directors and chiefs,

Areas in which advance rulings will not be issued; Associate 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 advance rulings
or determination letters. Rev. Proc. 99–7 superseded.

3

Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2000–1
TABLE OF CONTENTS
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
SECTION 2. IN WHAT FORM
IS GUIDANCE PROVIDED BY
THE OFFICES OF ASSOCIATE
CHIEF COUNSEL (DOMESTIC),
ASSOCIATE CHIEF COUNSEL
(EMPLOYEE BENEFITS AND
EXEMPT ORGANIZATIONS),
ASSOCIATE CHIEF COUNSEL
(ENFORCEMENT LITIGATION),
AND ASSOCIATE CHIEF
COUNSEL (INTERNATIONAL)?

p. 10
p. 10
.01 Letter ruling
.02 Closing agreement
.03 Determination letter
.04 Information letter
.05 Revenue ruling
.06 Oral guidance
(1) No oral rulings, and no written rulings in response to oral requests
(2) Discussion possible on substantive issues

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

p. 12
.01 Issues under the jurisdiction of the Associate Chief Counsel (Domestic)
(1) Issues under the Assistant Chief Counsel (Corporate)
(2) Issues under the Assistant Chief Counsel (Financial Institutions and Products)
(3) Issues under the Assistant Chief Counsel (Income Tax and Accounting)
(4) Issues under the Assistant Chief Counsel (Passthroughs and Special Industries)
.02 Issues under the jurisdiction of the Associate Chief Counsel (Employee
Benefits and Exempt Organizations)
.03 Issues under the jurisdiction of the Associate Chief Counsel (Enforcement
Litigation)
.04 Issues under the jurisdiction of the Associate Chief Counsel (International)

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

p.14
.01 Alcohol, tobacco, and firearms taxes
.02 Employee plans and exempt organizations

January 3, 2000

4

2000–1 I.R.B.

SECTION 5. UNDER WHAT
CIRCUMSTANCES DOES
THE NATIONAL OFFICE
ISSUE LETTER RULINGS?

p. 14
.01 In income and gift tax matters
.02 A § 301.9100 request for extension of time for making an election or for
other relief
.03 Determinations under § 999(d) of the Internal Revenue Code
.04 In matters involving § 367
.05 In estate tax matters
.06 In matters involving additional estate tax under § 2032A(c)
.07 In matters involving qualified domestic trusts under § 2056A
.08 In generation-skipping transfer tax matters
.09 In employment and excise tax matters
.10 In administrative provisions matters
.11 Generally not to business associations or groups
.12 Generally not to foreign governments
.13 Generally not on federal tax consequences of proposed legislation
.14 Issuance of a letter ruling before the issuance of a regulation or other published guidance

SECTION 6. UNDER WHAT
CIRCUMSTANCES DO
DISTRICT DIRECTORS
ISSUE DETERMINATION
LETTERS?

p. 19
.01 In income and gift tax matters
.02 In estate tax matters
.03 In generation-skipping transfer tax matters
.04 In employment and excise tax matters
.05 Circumstances under which determination letters are not issued by district
director
.06 Requests concerning income, estate, or gift tax returns
.07 Attach a copy of determination letter to taxpayer’s return
.08 Review of determination letters

SECTION 7. UNDER WHAT
CIRCUMSTANCES DOES
THE SERVICE HAVE
DISCRETION TO ISSUE
LETTER RULINGS AND
DETERMINATION LETTERS?

p. 21
.01 Ordinarily not in certain areas because of factual nature of the problem
.02 Not on alternative plans or hypothetical situations
.03 Ordinarily not on part of an integrated transaction

2000–1 I.R.B.

5

January 3, 2000

.04 Ordinarily not on questions involving the validity of the federal income tax
or similar matters
.05 On constructive sales price under § 4216(b) or § 4218(c)
SECTION 8. WHAT ARE THE
GENERAL INSTRUCTIONS
FOR REQUESTING LETTER
RULINGS AND
DETERMINATION LETTERS?

p. 21
.01 Certain information required in all requests
(1) Complete statement of facts and other information
(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents, and foreign laws
(3) Analysis of material facts
(4) Statement regarding whether same issue is in an earlier return
(5) Statement regarding whether same or similar issue was previously ruled
on or requested, or is currently pending
(6) Statement of supporting authorities
(7) Statement of contrary authorities
(8) Statement identifying pending legislation
(9) Statement identifying information to be deleted from copy of letter ruling
or determination letter for public inspection
(10) Signature by taxpayer or authorized representative
(11) Authorized representatives
(12) Power of attorney and declaration of representative
(13) Penalties of perjury statement
(14) Number of copies of request to be submitted
(15) Sample format for a letter ruling request
(16) Checklist for letter ruling requests
.02 Additional information required in certain circumstances
(1) To request separate letter rulings for multiple issues in a single situation
(2) To designate recipient of original or copy of letter ruling or determination letter
(3) To request a particular conclusion on a proposed transaction
(4) To request expeditious handling
(5) To receive any document related to the letter ruling request by facsimile
transmission (fax)
(6) To submit a request for a letter ruling by fax

January 3, 2000

6

2000–1 I.R.B.

(7) To request a conference
(8) To obtain the applicable user fee for substantially identical letter rulings
or identical accounting method changes
.03 Address to send the request
(1) Requests for letter rulings
(2) Requests for determination letters
.04 Pending letter ruling requests
.05 When to attach letter ruling to return
.06 How to check on status of request
.07 Request may be withdrawn or national office may decline to issue letter ruling
.08 Compliance with Treasury Department Circular No. 230
SECTION 9. WHAT OTHER
CHECKLISTS, GUIDELINE
REVENUE PROCEDURES,
NOTICES, SAFE HARBOR
REVENUE PROCEDURES,
AND AUTOMATIC CHANGE
REVENUE PROCEDURES
APPLY TO CERTAIN
REQUESTS?

p. 33

SECTION 10. HOW DOES THE
NATIONAL OFFICE HANDLE
LETTER RULING REQUESTS?

p. 39

.01 Checklists and guideline revenue procedures and notices
.02 Safe harbor revenue procedures
.03 Automatic change revenue procedures

.01 Controls request and refers it to appropriate Assistant Chief Counsel or to
the Office of Associate Chief Counsel (International)
.02 Branch representative contacts taxpayer within 21 days
.03 Notifies taxpayer if any issues have been referred to another branch or office
.04 Determines if transaction can be modified to obtain favorable letter ruling
.05 Is not bound by informal opinion expressed
.06 Tells taxpayer if request lacks essential information during initial contact
.07 Requires prompt submission of additional information requested after initial
contact
.08 Near the completion of the ruling process, advises the taxpayer of conclusions and, if the Service will rule adversely, offers the taxpayer the opportunity to withdraw the letter ruling request
.09 May request draft of proposed letter ruling near the completion of the ruling
process
.10 Issues separate letter rulings for substantially identical letter rulings and
generally issues a single letter ruling for identical accounting method
changes

2000–1 I.R.B.

7

January 3, 2000

.11 Sends copy of letter ruling to district director
SECTION 11. HOW ARE
CONFERENCES
SCHEDULED?

p. 43
.01 Schedules a conference if requested by taxpayer
.02 Permits taxpayer one conference of right
.03 Disallows verbatim recording of conferences
.04 Makes tentative recommendations on substantive issues
.05 May offer additional conferences
.06 Requires written confirmation of information presented at conference
.07 May schedule a pre-submission conference
.08 Under limited circumstances, may schedule a conference to be held by telephone

SECTION 12. WHAT EFFECT
WILL A LETTER RULING
HAVE?

p. 46
.01 May be relied on subject to limitations
.02 Will not apply to another taxpayer
.03 Will be used by a district director in examining the taxpayer’s return
.04 May be revoked or modified if found to be in error
.05 Not generally revoked or modified retroactively
.06 Retroactive effect of revocation or modification applied to a particular transaction
.07 Retroactive effect of revocation or modification applied to a continuing action or series of actions
.08 Generally not retroactively revoked or modified if related to sale or lease
subject to excise tax
.09 May be retroactively revoked or modified when transaction is entered into
before the issuance of the letter ruling
.10 May be retroactively revoked or modified when transaction is entered into
after a change in material facts
.11 Taxpayer may request that retroactivity be limited
(1) Request for relief under § 7805(b) must be made in required format
(2) Taxpayer may request a conference on application of § 7805(b)

SECTION 13. WHAT EFFECT
WILL A DETERMINATION
LETTER HAVE?

p. 49
.01 Has same effect as a letter ruling
.02 Taxpayer may request that retroactive effect of revocation or modification
be limited

January 3, 2000

8

2000–1 I.R.B.

(1) Request for relief under § 7805(b) must be made in required format
(2) Taxpayer may request a conference on application of § 7805(b)
SECTION 14. UNDER WHAT
CIRCUMSTANCES ARE
MATTERS REFERRED
BETWEEN A DISTRICT
OFFICE AND THE NATIONAL
OFFICE?

p. 50
.01 Requests for determination letters
.02 No-rule areas
.03 Requests for letter rulings

SECTION 15. WHAT ARE THE
p. 50
USER FEE REQUIREMENTS
FOR REQUESTS FOR LETTER
RULINGS AND DETERMINATION
LETTERS?

.01 Legislation authorizing user fees
.02 Requests to which a user fee applies
.03 Requests to which a user fee does not apply
.04 Exemptions from the user fee requirements
.05 Fee schedule
.06 Applicable user fee for a request involving multiple offices, fee categories,
issues, transactions, or entities
.07 Applicable user fee for substantially identical letter rulings or identical accounting method changes
.08 Method of payment
.09 Effect of nonpayment or payment of incorrect amount
.10 Refunds of user fee
.11 Request for reconsideration of user fee

SECTION 16. WHAT
ARE THE GENERAL
PROCEDURES APPLICABLE
TO INFORMATION LETTERS
ISSUED BY THE
NATIONAL OFFICE?

p. 56
.01 Will be made available to the public

.02 Deletions made under the Freedom of Information Act
.03 Effect of information letters

SECTION 17. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 99–1?

p. 57

SECTION 18. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?

p. 57

2000–1 I.R.B.

9

January 3, 2000

SECTION 19. WHAT IS THE
EFFECTIVE DATE OF THIS
REVENUE PROCEDURE?

p. 57

SECTION 20. PAPERWORK
REDUCTION ACT

p. 58

DRAFTING INFORMATION

p. 58

INDEX

p. 59

APPENDIX A—SCHEDULE
OF USER FEES

p. 62

APPENDIX B—SAMPLE
FORMAT FOR A LETTER
RULING REQUEST

p. 66

APPENDIX C—CHECKLIST
FOR A LETTER RULING
REQUEST

p. 69

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

This revenue procedure explains how the Internal Revenue Service gives guidance to
taxpayers on issues under the jurisdiction of the Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), and the Associate Chief Counsel (International). It explains the kinds of guidance and the manner in which guidance is requested
by taxpayers and provided by the Service. A sample format of a request for a letter ruling
is provided in Appendix B.

Description of terms used in
this revenue procedure

For purposes of this revenue procedure—
(1) any reference to district director or district office includes their respective offices or,
when appropriate, the Assistant Commissioner (International);
(2) the term “taxpayer” includes all persons subject to any provision of the Internal Revenue Code (including issuers of § 103 obligations) and, when appropriate, their representatives; and
(3) the term “national office” refers to the Office of Associate Chief Counsel (Domestic),
the Office of Associate Chief Counsel (Employee Benefits and Exempt Organizations),
the Office of Associate Chief Counsel (Enforcement Litigation), or the Office of Associate
Chief Counsel (International), as appropriate.
The offices and titles in this revenue procedure are based on the current organization of
the Service. We anticipate that these offices and titles will change as the reorganization of
the Service is implemented.

Updated annually

The revenue procedure is updated annually as the first revenue procedure of the year, but
may be modified or amplified during the year.

SECTION 2. IN WHAT FORM
IS GUIDANCE PROVIDED BY
THE OFFICES OF ASSOCIATE
CHIEF COUNSEL (DOMESTIC),
ASSOCIATE CHIEF COUNSEL

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

Sec. 1
January 3, 2000

10

2000–1 I.R.B.

(EMPLOYEE BENEFITS AND
EXEMPT ORGANIZATIONS),
ASSOCIATE CHIEF
COUNSEL (ENFORCEMENT
LITIGATION), AND ASSOCIATE
CHIEF COUNSEL
(INTERNATIONAL)?

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

Letter ruling

.01 A “letter ruling” is a written statement issued to a taxpayer by the national office that
interprets and applies the tax laws to the taxpayer’s specific set of facts. A letter ruling includes the written permission or denial of permission by the national office to a request for
a change in a taxpayer’s accounting method or accounting period. Once issued, a letter
ruling may be revoked or modified for any number of reasons, as explained in section 12
of this revenue procedure, unless it is accompanied by a “closing agreement.”

Closing agreement

.02 A closing agreement is a final agreement between the Service and a taxpayer on a
specific issue or liability. It is entered into under the authority in § 7121 and is final unless
fraud, malfeasance, or misrepresentation of a material fact can be shown.
A closing agreement may be entered into when it is advantageous to have the matter permanently and conclusively closed or when a taxpayer can show that there are good reasons for an agreement and that making the agreement will not prejudice the interests of the
Government. In appropriate cases, a taxpayer may be asked to enter into a closing agreement as a condition to the issuance of a letter ruling.
If, in a single case, a closing agreement is requested for each person in a class of taxpayers, separate agreements are entered into only if the class consists of 25 or fewer taxpayers. However, if the issue and holding are identical for the class and there are more than 25
taxpayers in the class, a “mass closing agreement” will be entered into with the taxpayer
who is authorized by the others to represent the class.

Determination letter

.03 A “determination letter” is a written statement issued by a district director that applies the principles and precedents previously announced by the national office to a specific set of facts. It is issued only when a determination can be made based on clearly established rules in the statute, a tax treaty, or the regulations, or based on a conclusion in a
revenue ruling, opinion, or court decision published in the Internal Revenue Bulletin that
specifically answers the questions presented.
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.
96–13, 1996–1 C.B. 616.

Information letter

.04 An “information letter” is a statement issued either by the national office or by a district director. 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. An information letter
may be issued if the taxpayer’s inquiry indicates a need for general information or if the
taxpayer’s request does not meet the requirements of this revenue procedure and the Service thinks general information will help the taxpayer. The taxpayer should provide a daytime telephone number with the taxpayer’s request for an information letter. An information letter is advisory only and has no binding effect on the Service.

Revenue ruling

.05 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 issued only by the national office and are published for the information and guidance of taxpayers, Service personnel, and other interested parties.

2000–1 I.R.B.

11

Sec. 2.05
January 3, 2000

Because each revenue ruling represents the conclusion of the Service regarding the application of law to the entire statement of facts involved, taxpayers, Service personnel, and
other concerned parties are cautioned against reaching the same conclusion in other cases
unless the facts and circumstances are substantially the same. They should consider the
effect of subsequent legislation, regulations, court decisions, revenue rulings, notices, and
announcements. See Rev. Proc. 89–14, 1989–1 C.B. 814, which states the objectives of,
and standards for, the publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin.
Oral guidance

.06
(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. However, Service employees ordinarily will discuss with taxpayers or their representatives inquiries regarding whether the Service will rule on particular issues and questions relating
to procedural matters about submitting 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, substantive issues also may be discussed. However, such a discussion will not be 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).
Substantive tax issues involving the taxpayer that are under examination, in appeals, or in
litigation will not be discussed by Service employees not directly involved in the examination, appeal, or litigation of the issues unless the discussion is coordinated with those Service employees who are directly involved in the examination, appeal, or litigation of the
issues. The taxpayer or the taxpayer’s representative ordinarily will be asked whether the
oral request for guidance or information relates to a matter pending before another office
of the Service.
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
district office or service center when preparing a return or report. Oral guidance is advisory only, and the Service is not bound to recognize it, for example, in the examination of
the taxpayer’s return.
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 confirmation of the substance of
the letter.

SECTION 3. ON WHAT
ISSUES MAY TAXPAYERS
REQUEST WRITTEN
GUIDANCE 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 Chief Counsel
(Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organizations),
the Associate Chief Counsel (Enforcement Litigation), and the Associate Chief Counsel
(International). The national office issues letter rulings to answer written inquiries of individuals and organizations about their status for tax purposes and the tax effects of their
acts or transactions when appropriate in the interest of sound tax administration.
Taxpayers also may request determination letters within the jurisdiction of the appropriate district director offices that relate to the Code sections under the jurisdiction of the Associate Chief Counsel (Domestic), the Associate Chief Counsel (Employee Benefits and

Sec. 2.05
January 3, 2000

12

2000–1 I.R.B.

Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International).
Issues under the jurisdiction
of the Associate Chief Counsel
(Domestic)

.01 Issues under the jurisdiction of the Associate Chief Counsel (Domestic) include
all issues under the jurisdiction of the various Assistant Chief Counsels as explained
below.

Issues under the Assistant
Chief Counsel (Corporate)

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

Issues under the Assistant Chief
Counsel (Financial Institutions
and Products)

(2) Issues under the Assistant Chief Counsel (Financial Institutions and Products) include those that involve income taxes and accounting method changes of banks, savings
and loan associations, real estate investment trusts (REITs), regulated investment companies (RICs), real estate mortgage investment conduits (REMICs), tax-exempt obligations,
mortgage credit certificates (MCCs), insurance companies and products, and financial
products.

Issues under the Assistant
Chief Counsel (Income Tax
and Accounting)

(3) Issues under the Assistant Chief Counsel (Income Tax and Accounting) include
those that involve recognition and timing of income and deductions of individuals and
corporations, sales and exchanges, capital gains and losses, installment sales, equipment
leasing, inventories, the alternative minimum tax, accounting method changes for these
and other miscellaneous issues, various administrative provisions, and accounting periods.

Issues under the Assistant
Chief Counsel (Passthroughs
and Special Industries)

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

Issues under the jurisdiction
of the Associate Chief Counsel
(Employee Benefits and Exempt
Organizations)

.02 Issues under the jurisdiction of the Associate Chief Counsel (Employee Benefits
and Exempt Organizations) include those that involve income tax and other tax aspects of
executive compensation and employee benefit programs (other than those within the jurisdiction of the Commissioner (Tax Exempt and Government Entities Division), employment taxes, and taxes on self-employment income.

Issues under the jurisdiction
of the Associate Chief Counsel
(Enforcement Litigation)

.03 Issues under the jurisdiction of the Associate Chief Counsel (Enforcement Litigation) include issues only under the jurisdiction of the Assistant Chief Counsel (General
Litigation). Issues under the Assistant Chief Counsel (General Litigation) include those
that involve collection.

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

.04 Issues under the jurisdiction of the Associate Chief Counsel (International) include
the tax treatment of nonresident aliens and foreign corporations; withholding of tax on
nonresident aliens and foreign corporations; foreign tax credit; determination of sources of
income; income from sources without the United States; subpart F questions; domestic international sales corporations (DISCs); foreign sales corporations (FSCs); international
boycott determinations; treatment of certain passive foreign investment companies; and
income affected by treaty.

2000–1 I.R.B.

13

Sec. 3.04
January 3, 2000

For the procedures to obtain advance pricing agreements under § 482, see Rev. Proc.
96–53, 1996–2 C.B. 375, as modified by Notice 98–65, 1998–2 C.B. 803.
For the procedures concerning competent authority relief arising under the application
and interpretation of tax treaties between the United States and other countries, see Rev.
Proc. 96–13. However, competent authority consideration for an advance pricing agreement should be requested under Rev. Proc. 96–53.
SECTION 4. ON WHAT ISSUES
MUST WRITTEN GUIDANCE
BE REQUESTED UNDER
DIFFERENT PROCEDURES?
Alcohol, tobacco, and
firearms taxes

.01 The procedures for obtaining letter rulings, etc., that apply to federal alcohol,
tobacco, and firearms taxes under subtitle E of the Code are under the jurisdiction of the
Bureau of Alcohol, Tobacco and Firearms.

Employee plans and
exempt organizations

.02 The procedures for obtaining letter rulings, determination letters, etc., on employee
plans and exempt organizations are under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. See Rev. Proc. 2000–4, this Bulletin. See also
Rev. Proc. 2000–6, this Bulletin, for the procedures for issuing determination letters on the
qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans under §§ 401, 403(a), 409, and 4975(e)(7), and the status for exemption of
any related trusts or custodial accounts under § 501(a).
For the user fee requirements applicable to requests for letter rulings, determination letters, etc., under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, see Rev. Proc. 2000–8.

SECTION 5. UNDER WHAT
CIRCUMSTANCES DOES
THE NATIONAL OFFICE
ISSUE LETTER RULINGS?
In income and gift
tax matters

.01 In income and gift tax matters, the national office generally issues a letter ruling on
a proposed transaction and on a completed transaction if the letter ruling request is submitted before the return is filed for the year in which the transaction that is the subject of
the request was completed.
(1) Circumstances under which a letter ruling is not ordinarily issued. The national
office ordinarily does not issue a letter ruling if, at the time the letter ruling is requested,
the identical issue is involved in the taxpayer’s return for an earlier period and that issue—
(a) is being examined by a district director;
(b) is being considered by an appeals office;
(c) is pending in litigation in a case involving the taxpayer or a related taxpayer;
(d) has been examined by a district director or considered by an appeals office and the
statutory period of limitations has not expired for assessment or for filing a claim for refund or credit of tax; or
(e) has been examined by a district director or considered by an appeals office and a
closing agreement covering the issue or liability has not been entered into by a district director or by an appeals office.
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, the national office will issue the letter ruling unless it is no-

Sec. 3.04
January 3, 2000

14

2000–1 I.R.B.

tified 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 district director. See section 8.04 of
this revenue procedure. However, even if an examination has begun, the national office
ordinarily will issue the letter ruling if the district director agrees, by memorandum, to the
issuance of the letter ruling.
(2) No letter ruling on a property conversion after return filed. The national office
does not issue a letter ruling on the replacement of involuntarily converted property,
whether or not the property has been replaced, if the taxpayer has already filed a return for
the taxable year in which the property was converted. However, the district director may
issue a determination letter in this case. See section 6.01 of this revenue procedure.
(3) Certain late S corporation and related elections. In lieu of requesting a letter ruling under this revenue procedure, a taxpayer may obtain relief for certain late S corporation and related elections by following the procedures in Rev. Proc. 98–55, 1998–2 C.B.
645, or Rev. Proc. 97–48, 1997–2 C.B. 521. A request made pursuant to Rev. Proc. 98–55
or Rev. Proc. 97–48 does not require payment of any user fee. See section 3.05 of Rev.
Proc. 98–55, section 3 of Rev. Proc. 97–48, and section 15.03(2) of this revenue procedure.
(4) Treatment of environmental cleanup costs. A request initiated by a taxpayer for
written guidance on the tax treatment under §§ 162, 165, 198, or 263 of environmental
cleanup costs incurred in projects that span several taxable years, including prior and future taxable years, is a letter ruling request even if the request is submitted after the return
for the project year is filed, after an examination of any project year has begun, or after the
issues in the return for any project year are being considered by an appeals office. However, if a taxpayer-initiated request is submitted after the return for the project year is filed,
after an examination on any project year has begun, or after the issues in the return for any
project year are being considered by an appeals office, then the request must be submitted
in accordance with the procedures in Rev. Proc. 98–17, 1998–1 C.B. 405, unless such request is more appropriately made under Rev. Proc. 2000–2. The procedures in Rev. Proc.
98–17 are available for a taxpayer-initiated request submitted during the two-year period
beginning on February 2, 1998.
A § 301.9100 request for
extension of time for making an
election or for other relief

.02 The national office will consider a request for an extension of time for making an
election or other application for relief under § 301.9100–3 of the Procedure and Administration Regulations. Even if submitted after the return covering the issue presented in the
§ 301.9100 request has been filed and even if submitted after an examination of the return
has begun or after the issues in the return are being considered by an appeals office or a
federal court, a § 301.9100 request is a letter ruling request. Therefore, the § 301.9100 request should be submitted pursuant to this revenue procedure.
However, an election made pursuant to § 301.9100–2 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. Such an election pertains to an automatic extension of time.
(1) Format of request. A § 301.9100 request (other than an election made pursuant to
§ 301.9100–2) must be in the general form of, and meet the general requirements for, a letter ruling request. These requirements are given in section 8 of this revenue procedure. In
addition, the § 301.9100 request must include the information required by § 301.9100–
3(e).
(2) Statute of limitations. The running of any applicable period of limitations is not
suspended for the period during which a § 301.9100 request has been filed. See
§ 301.9100–3(d)(2). If the period of limitations on 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 letter ruling, the Service ordinarily will not issue a § 301.9100 ruling. See

2000–1 I.R.B.

15

Sec. 5.02
January 3, 2000

§ 301.9100–3(c)(1)(ii). Therefore, the taxpayer must secure a consent under § 6501(c)(4)
to extend the period of limitations on assessment. Note that the filing of a claim for refund
under § 6511 does not extend the period of limitations on assessment. If § 301.9100 relief
is granted, the Service may require the taxpayer to consent to an extension of the period of
limitations on assessment. See § 301.9100–3(d)(2).
(3) Taxpayer must notify national office if examination of return begins while request is pending. If the Service starts an examination of 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 while a § 301.9100 request is pending, the taxpayer must notify the national office. See § 301.9100–3(e)(4)(i) and section
8.04(1)(b) of this revenue procedure.
(4) National office will notify district director, appeals officer, or government counsel of a § 301.9100 request if return is being examined 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 any taxable year that would have been affected by the
election had it been timely made is being examined by a district office or considered by an
appeals office or a federal court, the national office will notify the appropriate district director, appeals officer, or government counsel that a § 301.9100 request has been submitted to the national office. The examining officer, appeals officer, or government counsel 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 appropriate district director, appeals
officer, or government counsel.
Determinations under § 999(d)
of the Internal Revenue Code

.03 Under Rev. Proc. 77–9, 1977–1 C.B. 542, the Office of Associate Chief Counsel
(International) issues determinations under § 999(d) that may deny certain benefits of the
foreign tax credit, deferral of earnings of foreign subsidiaries and domestic international
sales corporations (DISCs), and tax exemption for foreign trade income of a foreign sales
corporation or a small foreign sales corporation (FSC or small FSC) to a person, if that
person, a member of a controlled group (within the meaning of § 993(a)(3)) that includes
the person, or a foreign corporation of which a member of the controlled group is a United
States shareholder, agrees to participate in, or cooperate with, an international boycott.
Requests for determinations under Rev. Proc. 77–9 are letter ruling requests and, therefore, should be submitted to the Associate Chief Counsel (International) pursuant to this
revenue procedure.

In matters involving § 367

.04 Unless the issue is covered by section 7 of this revenue procedure, the Office of 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 Office of Associate Chief Counsel (International) will determine the § 367 consequences of a transaction based on the taxpayer’s
characterization of the transaction but will indicate in the letter ruling that it expresses no
opinion as to the characterization of the transaction under the reorganization. However,
the Office of Associate Chief Counsel (International) 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

.05 In general, the national office issues prospective letter rulings on transactions affecting the estate tax on the prospective estate of a living person and affecting the estate tax on
the estate of a decedent before the decedent’s estate tax return is filed. The national office
will not issue letter rulings for prospective estates on computations of tax, actuarial factors, and factual matters.
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 national of-

Sec. 5.02
January 3, 2000

16

2000–1 I.R.B.

fice 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 national office, the taxpayer must disclose on the return that a letter ruling has been requested, attach a copy of
the pending letter ruling request to the return, and notify the national office that the return
has been filed. See section 8.04 of this revenue procedure. The national office will make
every effort to issue the letter ruling within 3 months of the date the return was filed.
If the letter ruling cannot be issued within that 3-month period, the national office will
notify the district director having jurisdiction over the return, who may, by memorandum
to the national office, grant an additional period for the issuance of the letter ruling.
In matters involving additional
estate tax under § 2032A(c)

.06 In matters involving additional estate tax under § 2032A(c), the national office issues letter rulings on proposed transactions and on completed transactions that occurred
before the return is filed.

In matters involving qualified
domestic trusts under § 2056A

.07 In matters involving qualified domestic trusts under § 2056A, the national office issues letter rulings on proposed transactions and on completed transactions that occurred
before the return is filed.

In generation-skipping
transfer tax matters

.08 In general, the national office issues letter rulings on proposed transactions that affect the generation-skipping transfer tax and on completed transactions that occurred before the return is filed. In the case of a generation-skipping trust or trust equivalent, letter
rulings are issued either before or after the trust or trust equivalent has been established.
The national office will issue letter rulings on the application of the effective date rules for
generation-skipping transfer tax (§ 1433 of the Tax Reform Act of 1986, 1986–3 (Vol. 1)
C.B. 1, 648) to wills, trusts, and trust equivalents in existence on October 22, 1986, and to
generation-skipping transfers taking place on or before October 22, 1986.

In employment and
excise tax matters

.09 In employment and excise tax matters, the national office issues letter rulings on
proposed transactions and on completed transactions either before or after the return is
filed for those transactions.
Requests regarding employment status (employer/employee relationship) from federal
agencies and instrumentalities should be submitted directly to the national office. Requests regarding employment status from other taxpayers must first be submitted to the
appropriate Service office listed on the current Form SS–8 (Rev. June 1997). See section
6.04 of this revenue procedure. Generally, the employer is the taxpayer and requests the
letter ruling. However, if the worker asks for the letter ruling, both the worker and the employer are considered to be the taxpayer and both are entitled to the letter ruling.
The national office usually will not issue a letter ruling if, at the time the letter ruling is
requested, the identical issue is involved in the taxpayer’s return for an earlier period and
that issue—
(1) is being examined by a district director;
(2) is being considered by an appeals office;
(3) is pending in litigation in a case involving the taxpayer or a related taxpayer;
(4) has been examined by a district director or considered by an appeals office and the
statutory period of limitations has not expired for assessment or for filing a claim for refund or credit of tax; or
(5) has been examined by a district director or considered by an appeals office and a
closing agreement covering the issue or liability has not been entered into by a district director or by an appeals office.

2000–1 I.R.B.

17

Sec. 5.09
January 3, 2000

If a return involving an issue for a particular year is filed while a request for a letter ruling on that issue is pending, the national office will issue the letter ruling unless it is notified by the taxpayer or otherwise learns that an examination of that issue or an examination of the identical issue on an earlier year’s return has been started by a district director.
See section 8.04 of this revenue procedure. However, even if an examination has begun,
the national office ordinarily will issue the letter ruling if the district director agrees, by
memorandum, to the issuance of the letter ruling.
In administrative
provisions matters

.10
(1) In general. The national office issues letter rulings on matters arising under the Code
and related statutes and regulations that involve—
(a) the time, place, manner, and procedures for reporting and paying taxes;
(b) the assessment and collection of taxes (including interest and penalties);
(c) the abatement, credit, or refund of an overassessment or overpayment of tax; or
(d) the filing of information returns.
(2) Circumstances under which a letter ruling is not ordinarily issued. The national
office ordinarily does not issue a letter ruling if, at the time the letter ruling is requested,
the identical issue is involved in the taxpayer’s return for an earlier period and that issue—
(a) is being examined by a district director;
(b) is being considered by an appeals office;
(c) is pending in litigation in a case involving the taxpayer or a related taxpayer;
(d) has been examined by a district director or considered by an appeals office and the
statutory period of limitations has not expired for assessment or for filing a claim for refund or credit of tax; or
(e) has been examined by a district director or considered by an appeals office and a
closing agreement covering the issue or liability has not been entered into by a district director or appeals office.
If a return involving an issue for a particular year is filed while a request for a letter ruling on that issue is pending, the national office will issue the letter ruling unless it is notified by the taxpayer or otherwise learns that an examination of that issue or an examination of the identical issue on an earlier year’s return has been started by a district director.
See section 8.04 of this revenue procedure. But, even if an examination has begun, the national office ordinarily will issue the letter ruling if the district director agrees, by memorandum, to the issuance of the letter ruling.

Generally not to business
associations or groups

.11 The national office does not issue letter rulings to business, trade, or industrial
associations or to similar groups concerning the application of the tax laws to members of
the group. But groups and associations may submit suggestions of generic issues that
would be appropriately addressed in revenue rulings. See Rev. Proc. 89–14, which states
the objectives of, and standards for, the publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin.
The national office, however, may issue letter rulings to groups or associations on their
own tax status or liability if the request meets the requirements of this revenue procedure.

Generally not to foreign
governments

Sec. 5.09
January 3, 2000

.12 The national office does not issue letter rulings to foreign governments or their
political subdivisions about the U.S. tax effects of their laws. The national office also

18

2000–1 I.R.B.

does not issue letter rulings on the effect of a tax treaty on the tax laws of a treaty country
for purposes of determining the tax of the treaty country. See section 13.02 of Rev. Proc.
96–13, 1996–1 C.B. at 626. However, treaty partners can continue to address matters such
as these under the provisions of the applicable tax treaty. In addition, the national office
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

.13 The national office does not issue letter rulings on a matter involving the federal tax
consequences of any proposed federal, state, local, municipal, or foreign legislation. The
national office, however, may provide general information in response to an inquiry.

Issuance of a letter ruling before
the issuance of a regulation
or other published guidance

.14 Unless the issue is covered by section 7 of this revenue procedure, Rev. Proc.
2000–3, this Bulletin, or Rev. Proc. 2000–7, this Bulletin, 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 interests of tax administration.
(3) Issue cannot be readily resolved before a regulation or any other published
guidance is issued. A letter ruling will not be issued if the letter ruling request presents an
issue that cannot be readily resolved before a regulation or any other published guidance is
issued. However, when the Service has closed a regulation project or any other published
guidance project that might have answered the issue or decides not to open a regulation
project or any other published guidance project, the appropriate branch will consider all
letter ruling requests unless the issue is covered by section 7 of this revenue procedure,
Rev. Proc. 2000–3, or Rev. Proc. 2000–7.

SECTION 6. UNDER WHAT
CIRCUMSTANCES DO
DISTRICT DIRECTORS
ISSUE DETERMINATION
LETTERS?
District directors issue determination letters only if the question presented is specifically
answered by a statute, tax treaty, or regulation, or by a conclusion stated in a revenue ruling, opinion, or court decision published in the Internal Revenue Bulletin.
In income and gift tax matters

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

2000–1 I.R.B.

19

Sec. 6.02
January 3, 2000

In estate tax matters

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

In generation-skipping
transfer tax matters

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

In employment and
excise tax matters

.04 In employment and excise tax matters, district directors issue determination letters
in response to written requests from taxpayers on completed transactions over which they
have examination jurisdiction.
Requests for a determination of employment status (Form SS–8) from taxpayers (other
than federal agencies and instrumentalities) must be submitted to the appropriate Service
office listed on the current Form SS–8 (Rev. June 1997) and not directly to the national office. See also section 5.09 of this revenue procedure.

Circumstances under which
determination letters are not
issued by district director

.05 A district director will not issue a determination letter in response to any request
if—
(1) it appears that the taxpayer has directed a similar inquiry to the national office;
(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case
in litigation or before an appeals office;
(3) the determination letter is requested by an industry, trade association, or similar
group; or
(4) the request involves an industry-wide problem.
Under no circumstances will a district 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 district director has, or will have, examination jurisdiction.
A district director will not issue a determination letter on an employment tax question if
the specific question for the same taxpayer or a related taxpayer has been, or is being, considered by the Central Office of the Social Security Administration or the Railroad Retirement Board.
A district director also will not issue a determination letter on determining constructive
sales price under § 4216(b) or § 4218(c), which deal with special provisions applicable to
the manufacturer’s excise tax. The national office, however, will issue letter rulings in this
area. See section 7.05 of this revenue procedure.

Requests concerning income,
estate, or gift tax returns

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

Attach a copy of determination
letter to taxpayer’s return

.07 A taxpayer who, before filing a return, receives a determination letter about any
transaction that has been consummated and that is relevant to the return being filed should
attach a copy of the determination letter to the return when it is filed.

Review of determination letters

.08 Determination letters issued under sections 6.01 through 6.04 of this revenue proce-

Sec. 6.03
January 3, 2000

20

2000–1 I.R.B.

dure are not reviewed by the national office before they are issued. If a taxpayer believes
that a determination letter of this type is in error, the taxpayer may ask the district director
to reconsider the matter or to request technical advice from the national office as explained in Rev. Proc. 2000–2, this Bulletin.
SECTION 7. UNDER WHAT
CIRCUMSTANCES DOES THE
SERVICE HAVE DISCRETION
TO ISSUE LETTER RULINGS
AND DETERMINATION
LETTERS?
Ordinarily not in certain areas
because of factual nature
of the problem

.01 The Service ordinarily will not issue letter rulings or determination letters in certain
areas because of the factual nature of the problem involved or because of other reasons.
Rev. Proc. 2000–3 and Rev. Proc. 2000–7 provide a list of these areas. This list is not allinclusive 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 national office or a district director 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

.02 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

.03 The national office ordinarily will not issue a letter ruling on only part of an
integrated transaction. If, however, a part of a transaction falls under a no-rule area, a letter ruling on other parts of the transaction may be issued. Before preparing the letter ruling request, a taxpayer should call the branch having jurisdiction for the matters on which
the taxpayer is seeking a letter ruling to discuss whether the national office will issue a letter ruling on part of the transaction.
If two or more items or sub-methods of accounting are interrelated, the national office ordinarily will not issue a letter ruling on a change in accounting method involving only one
of the items or sub-methods.

Ordinarily not on questions
involving the validity of the
federal income tax or similar
matters

.04 A letter ruling or determination letter ordinarily will not be issued on questions
involving the validity of the federal income tax and other taxes set forth in the Code,
questions on the authority or jurisdiction of the Service to enforce the Code or collect
information, or similar matters.

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

.05 The national office will issue letter rulings in all cases on the determination of a
constructive sales price under § 4216(b) or § 4218(c) and in all other cases on prospective
transactions if the law or regulations require a determination of the effect of a proposed
transaction for tax purposes.

SECTION 8. WHAT ARE THE
GENERAL INSTRUCTIONS
FOR REQUESTING LETTER
RULINGS AND
DETERMINATION
LETTERS?
This section explains the general instructions for requesting letter rulings and determination letters on all matters. Requests for letter rulings and determination letters require the
payment of the applicable user fee listed in Appendix A of this revenue procedure. For additional user fee requirements, see section 15 of this revenue procedure.

2000–1 I.R.B.

21

Sec. 8.01
January 3, 2000

Specific and additional instructions also apply to requests for letter rulings and determination letters on certain matters. Those matters are listed in section 9 of this revenue procedure followed by a reference (usually to another revenue procedure) where more information can be obtained.
Certain information
required in all requests
Facts

.01
(1) Complete statement of facts and other information. Each request for a letter ruling or a determination letter must contain a complete statement of all facts relating to the
transaction. These facts include—
(a) names, addresses, telephone numbers, and taxpayer identification numbers of all interested parties. (The term “all interested parties” does not mean all shareholders of a
widely held corporation requesting a letter ruling relating to a reorganization or all employees where a large number may be involved.);
(b) the annual accounting period, and the overall method of accounting (cash or accrual)
for maintaining the accounting books and filing the federal income tax return, of all interested parties;
(c) the location of the district office that has or will have examination jurisdiction over
the return (not the service center where the return is filed);
(d) a description of the taxpayer’s business operations;
(e) a complete statement of the business reasons for the transaction; and
(f) a detailed description of the transaction.
The Service will usually not rule on only one step of a larger integrated transaction. See
section 7.03 of this revenue procedure. However, if such a letter ruling is requested, the
facts, circumstances, true copies of relevant documents, etc., relating to the entire transaction must be submitted.

Documents and foreign laws

(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents,
and foreign laws.
(a) Documents. True copies of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, and other documents pertinent to the transaction must
be submitted with the request.
If the request concerns a corporate distribution, reorganization, or similar transaction, the
corporate balance sheet and profit and loss statement should also be submitted. If the request relates to a prospective transaction, the most recent balance sheet and profit and loss
statement should be submitted.
If any document, including any balance sheet and profit and loss statement, is in a language other than English, the taxpayer must also submit a certified English translation of
the document, along with a true copy of the document. For guidelines on the acceptability
of such documents, see paragraph (c) of this section 8.01(2).
Each document, other than the request, should be labeled and attached to the request in
alphabetical sequence. Original documents, such as contracts, wills, etc., should not be
submitted because they become part of the Service’s file and will not be returned.
(b) Foreign laws. The taxpayer must submit with the request a copy of the relevant parts
of all foreign laws, including statutes, regulations, administrative pronouncements, and
any other relevant legal authority. The documents submitted must be in the official lan-

Sec. 8.01(1)
January 3, 2000

22

2000–1 I.R.B.

guage of the country involved and must be copied 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 taxpayer must also submit a copy of
an English language version of the relevant parts of all foreign laws. This translation must
be: (i) from an official publication of the foreign government or another widely available,
generally accepted publication; or (ii) a certified English translation submitted in accordance with paragraph (c) of this section 8.01(2).
The taxpayer must identify the title and date of publication, including updates, of any
widely available, generally accepted publication that the taxpayer (or the taxpayer’s qualified translator) uses as a source for the relevant parts of the foreign law.
(c) Standards for acceptability of submissions of documents in a language other
than English and certified English translations of laws in a language other than English. The taxpayer must submit with the request an accurate and complete certified English translation of the relevant parts of all contracts, wills, deeds, agreements, instruments,
trust documents, proposed disclaimers, or other documents 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, generally accepted publication. In either case, the translation must be
that of a qualified translator and must be attested to by the translator. The attestation must
contain: (i) a 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 income tax
matters; and (iii) the attestant’s name and address.
Analysis of material facts

(3) Analysis of material facts. All material facts in documents must be included, rather
than merely incorporated by reference, in the taxpayer’s initial request or in supplemental
letters. These facts must be accompanied by an analysis of their bearing on the issue or issues, specifying the provisions that apply.

Same issue in an earlier return

(4) Statement regarding whether same issue is in an earlier return. The request must
state whether, to the best of the knowledge of both the taxpayer and the taxpayer’s representatives, the same issue is in an earlier return of the taxpayer (or in a return for any year
of a related taxpayer within the meaning of § 267 or of a member of an affiliated group of
which the taxpayer is also a member within the meaning of § 1504).
If the statement is affirmative, it must specify whether the issue–
(a) is being examined by a district director;
(b) has been examined, but the statutory period of limitations has not expired for either
assessing tax or filing a claim for refund or credit of tax;
(c) has been examined, but a closing agreement covering the issue or liability has not
been entered into by a district director;
(d) is being considered by an appeals office in connection with a return from an earlier
period;
(e) has been considered by an appeals office in connection with a return from an earlier
period, but the statutory period of limitations has not 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, but a closing agreement covering the issue or liability has not been entered into by
an appeals office; or

2000–1 I.R.B.

23

Sec. 8.01(5)
January 3, 2000

(g) is pending in litigation in a case involving the taxpayer or a related taxpayer.
Same or similar issue previously
submitted or currently pending

(5) Statement regarding whether same or similar issue was previously ruled on or
requested, or is currently pending. The request must also state whether, to the best of
the knowledge of both the taxpayer and the taxpayer’s representatives–
(a) the Service previously ruled on the same or a similar issue for the taxpayer (or a related taxpayer within the meaning of § 267 or a member of an affiliated group of which
the taxpayer is also a member within the meaning of § 1504) or a predecessor;
(b) the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted a request (including an application for change in accounting method) involving the
same or a 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 (including an application for change in accounting method) involving the same or a similar
issue that is currently pending with the Service; or
(d) at the same time as this request, the taxpayer or a related taxpayer is presently submitting another request (including an application for change in accounting method) involving the same or a similar issue to the Service.
If the statement is affirmative for (a), (b), (c), or (d) of this section 8.01(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.

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 be included. Even if not advocating a particular tax treatment of a proposed transaction, the taxpayer must still furnish views on the tax results of the proposed
transaction and a statement of relevant authorities to support those views.
In all events, the request must include a statement of whether the law in connection with
the request is uncertain and whether the issue is adequately addressed by relevant authorities.

Statement of authorities
contrary to taxpayer’s views

(7) Statement of contrary authorities. The taxpayer is also encouraged to inform the
Service about, and discuss the implications of, any authority believed to be contrary to the
position advanced, such as legislation (or pending legislation), tax treaties, court decisions, regulations, notices, revenue rulings, revenue procedures, or announcements. If the
taxpayer determines that there are no contrary authorities, a statement in the request to this
effect 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

Sec. 8.01(5)
January 3, 2000

(8) Statement identifying pending legislation. At the time of filing the request, the

24

2000–1 I.R.B.

pending legislation

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

Deletions statement
required by § 6110

(9) Statement identifying information to be deleted from copy of letter ruling or determination letter for public inspection. The text of letter rulings and determination letters is open to public inspection under § 6110. The Service makes deletions from the text
before it is made available for inspection. To help the Service make the deletions required
by § 6110(c), a request for a letter ruling or determination letter must be accompanied by a
statement indicating the deletions desired (“deletions statement”). If the deletions statement is not submitted with the request, a Service representative will tell the taxpayer that
the request will be closed if the Service does not receive the deletions statement within 21
calendar days. See section 10.06 of this revenue procedure.
(a) Format of deletions statement. A taxpayer who wants only names, addresses, and
identifying numbers to be deleted should state this in the deletions statement. If the taxpayer wants more information deleted, the deletions statement must be accompanied by a
copy of the request and supporting documents on which the taxpayer should bracket the
material to be deleted. The deletions statement must indicate the statutory basis under §
6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or determination letter is issued, additional deletions statements may be submitted.
(b) Location of deletions statement. The deletions statement must not appear in the request, but instead must be made in a separate document and placed on top of the request
for a letter ruling or determination letter.
(c) Signature. The deletions statement must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature is not permitted.
(d) Additional information. The taxpayer should follow the same procedures above to
propose deletions from any additional information submitted after the initial request. An
additional deletions statement, however, is not required with each submission of additional information if the taxpayer’s initial deletions statement requests that only names,
addresses, and identifying numbers are to be deleted and the taxpayer wants only the same
information deleted from the additional information.
(e) Taxpayer may protest deletions not made. After receiving from the Service the notice under § 6110(f)(1) of intention to disclose the letter ruling or determination letter (including a copy of the version proposed to be open to public inspection and notation of
third-party communications under § 6110(d)), the taxpayer may protest the disclosure of
certain information in the letter ruling or determination letter. The taxpayer must send a
written statement within 20 calendar days to the Service office indicated on the notice of
intention to disclose. The statement must identify those deletions that the Service has not
made and that the taxpayer believes should have been made. The taxpayer must also submit a copy of the version of the letter ruling or determination letter and bracket the deletions proposed that have not been made by the Service. Generally, the Service will not
consider deleting any material that the taxpayer did not propose to be deleted before the
letter ruling or determination letter was issued.
Within 20 calendar days after the Service receives the response to the notice under
§ 6110(f)(1), the Service will mail to the taxpayer its final administrative conclusion regarding the deletions to be made. The taxpayer does not have the right to a conference to
resolve any disagreements concerning material to be deleted from the text of the letter ruling or determination letter. However, these matters may be taken up at any conference
that is otherwise scheduled regarding the request.

2000–1 I.R.B.

25

Sec. 8.01(9)
January 3, 2000

(f) Taxpayer may request delay of public inspection. After receiving the notice under
§ 6110(f)(1) of intention to disclose, but within 60 calendar days after the date of notice,
the taxpayer may send a request for delay of public inspection under either § 6110(g)(3) or
(4). The request for delay must be sent to the Service office indicated on the notice of intention to disclose. A request for delay under § 6110(g)(3) must contain the date on which
it is expected that the underlying transaction will be completed. The request for delay
under § 6110(g)(4) must contain a statement from which the Commissioner of Internal
Revenue may determine that there are good reasons for the delay.
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. A stamped signature is not permitted.

Authorized representatives

(11) Authorized representatives. To sign the request or to appear before the Service in
connection with the request, the representative must be:

Attorney

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

Certified public accountant

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

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. 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 (31 C.F.R. part 10 (1999));

Enrolled actuary

(d) An enrolled actuary who is a person, other than an attorney or certified public accountant, that is currently enrolled as an actuary by the Joint Board for the Enrollment of
Actuaries pursuant to 29 U.S.C. § 1242 and who is not currently under suspension or disbarment from practice before the Service. He or she must file a written declaration with
the Service showing current qualification as an enrolled actuary and current authorization
to represent the taxpayer. Practice before the Service as an enrolled actuary is limited to
representation with respect to issues involving §§ 401, 403(a), 404, 412, 413, 414, 4971,
6057, 6058, 6059, 6652(e), 6652(f), 6692, and 7805(b); former § 405; and 29 U.S.C.
§ 1083; or

A person with a “Letter of
Authorization”

(e) Any other person, including a foreign representative, who has received a “Letter of
Authorization” from the Director of Practice 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 of Practice, HR:DP, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, D.C. 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.

Employee, general partner,
bona fide officer, administrator,
trustee, etc.

(f) The above requirements do not apply to a regular full-time employee representing his
or her employer; to a general partner representing his or her partnership; to a bona fide
officer representing his or her corporation, association, or organized group; to a trustee, receiver, guardian, personal representative, administrator, or executor representing a trust,

Sec. 8.01(9)
January 3, 2000

26

2000–1 I.R.B.

receivership, guardianship, or estate; or to an individual representing his or her immediate
family. A preparer of a return (other than a person referred to in paragraph (a), (b), (c), (d),
or (e) of this section 8.01(11)) who is not a full-time employee, general partner, bona fide
officer, an administrator, a trustee, etc., or an individual representing his or her immediate
family. A preparer of a return (other than a person referred to in paragraph (a), (b), (c), (d),
or (e) of this section 8.01(11)) who is not a full-time employee, general partner, bona fide
officer, an administrator, a trustee, etc., or an individual representing his or her immediate
family may not represent a taxpayer in connection with a letter ruling or a determination
letter. See section 10.7(c) of Treasury Department Circular No. 230.
Foreign representative

(g) A foreign representative (other than a person referred to in paragraph (a), (b), (c), (d), or
(e) of this section 8.01(11)) is not authorized to practice before the Service and, therefore,
must withdraw from representing a taxpayer in a request for a letter ruling or a determination
letter. In this situation, the nonresident alien or foreign entity must submit the request for a
letter ruling or a determination letter on the individual’s or the entity’s own behalf or through
a person referred to in paragraph (a), (b), (c), (d), or (e) of this section 8.01(11).

Power of attorney and
declaration of representative

(12) Power of attorney and declaration of representative. Any authorized representative, whether or not enrolled to practice, must also comply with the conference and practice requirements of the Statement of Procedural Rules (26 C.F.R. § 601.501–601.509
(1999)), which provide the rules for representing a taxpayer before the Service. It is preferred that Form 2848, Power of Attorney and Declaration of Representative, be used to
provide the representative’s authorization (Part I of Form 2848, Power of Attorney) and
the representative’s qualification (Part II of Form 2848, Declaration of Representative).
The name of the person signing Part I of Form 2848 should also be typed or printed on this
form. A stamped signature is not permitted. An original, a copy, or a facsimile transmission (fax) of the power of attorney is acceptable so long as its authenticity is not reasonably disputed. For additional information regarding the power of attorney form, see section 8.02(2) of this revenue procedure.
For the requirement regarding compliance with Treasury Department Circular No. 230,
see section 8.08 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 [Insert, as appropriate: this request or this modification to the request], including accompanying documents, and, to the best of my knowledge and belief, [Insert, as
appropriate: the request or the modification] contains all the relevant facts relating
to the request, and such facts are true, correct, and complete.”
See section 10.07(1) of this revenue procedure for the penalties of perjury statement applicable for submissions of additional information.
(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer,
not the taxpayer’s representative. A stamped signature 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.

2000–1 I.R.B.

27

Sec. 8.01 (14)
January 3, 2000

Number of copies of request
to be submitted

(14) 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 8.02(1) of this revenue procedure;
(b) the taxpayer is requesting deletions other than names, addresses, and identifying
numbers, as explained in section 8.01(9)(a) of this revenue procedure. (One copy is the
request for the letter ruling or determination letter and the second copy is the deleted version of such request.); or
(c) a closing agreement (as defined in section 2.02 of this revenue procedure) is being requested on the issue presented.

Sample of a letter ruling request

(15) 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. 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 B, the different format will not defer consideration of the letter ruling
request.

Checklist

(16) Checklist for letter ruling requests. The Service will be able to respond more
quickly to a taxpayer’s letter ruling request if the request is carefully prepared and complete. The checklist in Appendix C of this revenue procedure is designed to assist taxpayers in preparing a request by reminding them of the essential information and documents
to be furnished with the request. The checklist in Appendix C must be completed to the
extent required by the instructions in the checklist, signed and dated by the taxpayer or the
taxpayer’s representative, and placed on top of the letter ruling request. If the checklist in
Appendix C is not received, a branch representative will ask the taxpayer or the taxpayer’s
representative to submit the checklist, which 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 9.01 of this revenue procedure and
must also be completed and placed on top of the letter ruling request along with the checklist in Appendix C.
Copies of the checklist in Appendix C can be obtained by calling (202) 622-7560 (not a
toll-free call). A photocopy of this checklist may be used.

Additional information
required in certain circumstances
Multiple issues

Sec. 8.01(14)
January 3, 2000

.02

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

28

2000–1 I.R.B.

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) To designate recipient of original or copy of letter ruling or determination letter.
Unless the power of attorney provides otherwise, 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. It is preferred that Form 2848, Power of Attorney
and Declaration of Representative, be used to provide the representative’s authorization.
See section 8.01(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.

Original of letter ruling or
determination letter sent to
taxpayer’s representative

(b) To have original sent to taxpayer’s representative. A taxpayer may request that
the original of the letter ruling or determination letter be sent to the taxpayer’s representative. In this case, a copy of the letter ruling or determination letter will be sent to the taxpayer. The letter ruling or determination letter is addressed to the taxpayer’s representative to whom the original is sent.
If the taxpayer wants the original of the letter ruling or determination letter sent to the
taxpayer’s representative, 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 the original of
the letter ruling or determination letter is to be sent to the taxpayer’s representative. When
a taxpayer has more than one representative, the Service will send the original of the letter
ruling or determination letter to the first representative named in the most recent power of
attorney.

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. 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 not
to be sent to any representative.

“Two-Part” letter ruling requests

(3) To request a particular conclusion on a proposed transaction. A taxpayer who is
requesting 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 8.01 of this revenue procedure. The second part must include a summary statement of the facts the taxpayer believes to be controlling in reaching the conclusion requested.
If the Service 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.
However, the Service reserves the right to rule on the basis of a more complete statement
of the facts and to seek more information in developing the facts and restating them.
A taxpayer who chooses this two-part procedure has all the rights and responsibilities
provided in this revenue procedure.

2000–1 I.R.B.

29

Sec. 8.02(4)
January 3, 2000

Taxpayers may not use the two-part procedure if it is inconsistent with other procedures,
such as those dealing with requests for permission to change accounting methods or periods, applications for recognition of exempt status under § 521, or rulings on employment
tax status.
After the Service has resolved the issues presented by a letter ruling request, the Service
representative may request that the taxpayer submit a proposed draft of the letter ruling to
expedite the issuance of the ruling. See section 10.09 of this revenue procedure.
Expeditious handling

(4) To request expeditious handling. The Service processes requests for letter rulings
and determination letters in order of the date received and as expeditiously as possible. A
taxpayer who has a compelling need to have a request processed ahead of the regular order
must request expeditious handling. This request must explain the need for expeditious
handling.
The request for expeditious handling must be made in writing, preferably in a separate
letter with, or soon after filing, the request for the letter ruling or determination letter. If
the request for expeditious handling 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: “Expeditious Handling Is Requested. See page ___ of this letter.”
A request for expeditious handling will not be forwarded to a rulings branch for action
until the check for the user fee is received.
The Service cannot give assurance that any letter ruling or determination letter will be
processed by the time requested. For example, 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. Accordingly, the Service
urges taxpayers to submit their requests well in advance of the contemplated transaction.

Facsimile transmission (fax)
of any document related
letter ruling request

(5) To receive a letter ruling or submit a request for a letter ruling by facsimile
transmission (fax). If the taxpayer requests, a copy of any document related to the to the
letter ruling request may be faxed to the taxpayer or the taxpayer’s authorized representative (for example, a request for additional information or the letter ruling). A letter ruling,
however, is not issued until the ruling is mailed. See § 301.6110–2(h).
A request to fax a copy of any document related to the letter ruling request 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 mailing or, with respect to the letter ruling, approval of the document. The request must contain the fax number of the taxpayer or the
taxpayer’s authorized representative to whom the document is to be faxed.
Because of the unsecured nature of a fax transmission, the national office will take certain precautions to protect confidential information. For example, the national office will
use a cover sheet that identifies the intended recipient of the fax and the number of pages
transmitted, that does not identify the taxpayer by name or identifying number, and that
contains a statement prohibiting unauthorized disclosure of the document if a recipient of
the faxed document is not the intended recipient of the fax. Also, for example, the cover
sheet should be faxed in an order in which it will become the first page covering the faxed
document.
Except for the letter ruling, the document will be faxed by a branch representative. The
letter ruling will be faxed by either a representative of the branch issuing the letter ruling
or the Communications, Records and User Fee Unit of the Technical Services Staff
(CC:DOM:CORP:TSS:CRU).

Sec. 8.02(4)
January 3, 2000

30

2000–1 I.R.B.

Fax of a letter ruling request

(6) To submit a request for a letter ruling by fax. Original letter ruling requests 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 rulings
branch for action until the check for the user fee is received.
Requests for a change in accounting method or a change in accounting period must not
be submitted by fax.

Requesting a conference

(7) To request a conference. A taxpayer who wants to have a conference on the issues
involved should indicate this in writing when, or soon after, filing the request. See also
sections 11.01, 11.02, and 12.11(2) of this revenue procedure.

Substantially identical letter
rulings or identical accounting
method changes

(8) To obtain the applicable user fee for substantially identical letter rulings or
identical accounting method changes. A taxpayer seeking the user fee provided in
paragraph (A)(5) of Appendix A of this revenue procedure for substantially identical letter
rulings or identical accounting method changes must provide the information required in
section 15.07 of this revenue procedure.

Address to send the request
Requests for letter rulings

.03
(1) Requests for letter rulings should be sent to the Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate
Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International), as
appropriate. The package should be marked: RULING REQUEST SUBMISSION.
(a) Requests for letter rulings should be sent to the following address:
Internal Revenue Service
Attn: CC:DOM:CORP:TSS
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
However, if a private delivery service is used, the address is:
Internal Revenue Service
Attn: CC:DOM:CORP:TSS, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
(b) Requests for letter rulings may also be hand delivered:
(i) To the drop box at the 12th Street entrance of 1111 Constitution Avenue, N.W., Washington, D.C.. No receipt will be given at the drop box. The package should be addressed to:
Internal Revenue Service
Attn: CC:DOM:CORP:TSS, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224; or
(ii) Between the hours of 8:15 a.m. and 5:00 p.m. to the courier’s desk at the main entrance of 1111 Constitution Avenue, N.W., Washington, D.C.. A receipt will be given at
the courier’s desk. The package should be addressed to:
Courier’s Desk
Internal Revenue Service
Attn: CC:DOM:CORP:TSS, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224

Sec. 8.03(1)
2000–1 I.R.B.

31

January 3, 2000

Requests for
determination letters

Pending letter ruling requests

(2) Requests for determination letters should be sent to the district director whose
office has or will have examination jurisdiction over the taxpayer’s return. For fees required with determination letter requests, see section 15 and Appendix A of this revenue
procedure.
.04
(1) Circumstances under which the taxpayer must notify the national office. The
taxpayer must notify the national office if, after the letter ruling request is filed but before
a letter ruling is issued, the taxpayer knows that—
(a) an examination of the issue or the identical issue on an earlier year’s return has been
started by a district director;
(b) in the case of a § 301.9100 request, 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 has been started by a district director. See
§ 301.9100–3(e)(4)(i) and section 5.02(3) of this revenue procedure;
(c) legislation that may affect the transaction has been introduced. See section 8.01(8) of
this revenue procedure; or
(d) another letter ruling request (including an application for change in accounting
method) 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) involving the same or similar issue that is currently pending with the
Service.
(2) Taxpayer must notify national office if return is filed and must attach request to
return. If the taxpayer files a return before a letter ruling is received from the national office concerning the issue, the taxpayer must notify the national 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 district office and thereby avoid premature district action on the issue.
This section 8.04 also applies to pending requests for a closing agreement on a transaction for which a letter ruling is not requested or issued, and for an advance pricing agreement.

When to attach letter
ruling to return

.05
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

.06
The taxpayer or the taxpayer’s authorized representative may obtain information regarding the status of a request by calling the person whose name and telephone number are
shown on the acknowledgment of receipt of the request or the appropriate branch representative who contacts the taxpayer as explained in section 10.02 of this revenue procedure.

Request may be withdrawn or
national 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.
Correspondence and exhibits related to a request that is withdrawn or related to a letter

Sec. 8.03(1)
January 3, 2000

32

2000–1 I.R.B.

ruling request for which the national office declines to issue a letter ruling will not be returned to the taxpayer. See section 8.01(2) of this revenue procedure. In appropriate
cases, the Service may publish its conclusions in a revenue ruling or revenue procedure.
(2) Notification of district director.
(a) Request to change an accounting method. If a taxpayer withdraws or the national
office declines to grant (for any reason) a request to change from or to adopt an improper
method of accounting, the national office will notify, by memorandum, the appropriate
district director and the Change in Method Issue Specialist, and may give its views on the
issues in the request to the appropriate district director to consider in any later examination
of the return.
(b) All other letter ruling requests. If a taxpayer withdraws a letter ruling request (other
than a request to change from or to adopt an improper method of accounting) or if the national office declines to issue a letter ruling (other than a letter ruling pertaining to a request
to change from or to adopt an improper method of accounting), the national office generally
will notify, by memorandum, the appropriate district director and may give its views on the
issues in the request to the appropriate district director to consider in any later examination
of the return. This section 8.07(2)(b) 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 national office has not formed an adverse opinion.
(c) Notification of district director may constitute Chief Counsel Advice. If the
memorandum to the district director referred to in paragraphs (a) and (b) of this section
8.07(2) provides more than the fact that the request was withdrawn and the national office
was tentatively adverse, or that the national office declines to grant a change in method of
accounting or issue a letter ruling, the memorandum would constitute Chief Counsel Advice, as defined in § 6110(i)(1), subject to disclosure under § 6110. For example, if the
memorandum explains the national office’s reasoning for its tentatively adverse position
on the issues in the request, the memorandum would constitute Chief Counsel Advice.
(3) Refunds of user fee. The user fee will not be returned for a letter ruling request that
is withdrawn. If the national office declines to issue a letter ruling on all of the issues in
the request, the user fee will be returned. If the national office, however, issues a letter
ruling on some, but not all, of the issues, the user fee will not be returned. See section
15.10 of this revenue procedure for additional information regarding refunds of user fees.
Compliance with Treasury
Department Circular No. 230

.08
The taxpayer’s authorized representative, whether or not enrolled, must comply with
Treasury Department Circular No. 230, which provides the rules for practice before the
Service. In those situations when the national office believes that the taxpayer’s representative is not in compliance with Circular No. 230, the national office will bring the matter
to the attention of the Director of Practice.
For the requirement regarding compliance with the conference and practice requirements, see section 8.01(12) of this revenue procedure.

SECTION 9. WHAT OTHER
CHECKLISTS, GUIDELINE
REVENUE PROCEDURES,
NOTICES, SAFE HARBOR
REVENUE PROCEDURES,
AND AUTOMATIC CHANGE
REVENUE PROCEDURES
APPLY TO CERTAIN
REQUESTS?

2000–1 I.R.B.

33

Sec. 9
January 3, 2000

Specific revenue procedures and notices supplement the general instructions for requests
explained in section 8 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 and guideline
revenue procedures and notices

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

CODE OR REGULATION
SECTION

REVENUE PROCEDURE AND NOTICE

103, 141–150, 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 nonreviewable ruling); Rev. Proc. 88–31, 1988–1 C.B. 832 (for approval of areas of chronic
economic distress); and Rev. Proc. 82–26, 1982–1 C.B. 476 (for “on behalf of” and similar
issuers). For approval of areas of chronic economic distress, Rev. Proc. 88–31 explains
how this approval must be submitted to the Assistant Secretary for Housing/Federal Housing Commissioner of the Department of Housing and Urban Development.

162, 165, 198, and 263
Treatment of environmental
cleanup costs

Rev. Proc. 98–17, 1998–1 C.B. 405.

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 and Adjustments

Rev. Proc. 77–37, 1977–2 C.B. 568, as modified by Rev. Proc. 89–30, 1989–1 C.B.
895, and as amplified by Rev. Proc. 77–41, 1977–2 C.B. 574, Rev. Proc. 83–81, 1983–2
C.B. 598 (see also Rev. Proc. 2000–3), Rev. Proc. 84–42, 1984–1 C.B. 521 (superseded as to
no-rule areas by Rev. Proc. 85–22, 1985–1 C.B. 550), Rev. Proc. 86–42, 1986–2 C.B. 722,
and Rev. Proc. 89–50, 1989–2 C.B. 631. But see Rev. Proc. 2000–3, section 3.01(23) (mergers or consolidations under § 368(a)(1)(A)), section 3.01(24) (stock acquisitions under
§ 368(a)(1)(B)), and section 3.01(27) (corporate changes under § 368(a)(1)(F)), which describe certain corporate reorganizations where the Service will not issue advance letter rulings or determination 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.

331
Checklist questionnaire

Rev. Proc. 86–16, 1986–1 C.B. 546.

332
Checklist questionnaire

Rev. Proc. 90–52, 1990–2 C.B. 626.

351
Checklist questionnaire

Rev. Proc. 83–59, 1983–2 C.B. 575. But see section 3.01(22) of Rev. Proc. 2000–3,
which describes certain transfers to controlled corporations where the Service will not
issue advance letter rulings or determination letters.

355
Checklist questionnaire

Rev. Proc. 96–30, 1996–1 C.B. 696.

Sec. 9.01
January 3, 2000

34

2000–1 I.R.B.

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

Rev. Proc. 81–60, 1981–2 C.B. 680. But see section 3.01(26) of Rev. Proc. 2000–3, which
describes circumstances under which the Service will not issue advance letter rulings or
determination 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. 96–53, 1996–2 C.B. 375, as modified by Notice 98–65, 1998–2 C.B. 803.

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.

1.817–5(a)(2)
Issuer of a variable contract
requesting relief

Rev. Proc. 92–25, 1992–1 C.B. 741.

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.

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

Rev. Proc. 98–55, 1998–2 C.B. 645; Rev. Proc. 97–48, 1997–2 C.B. 521.

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

Rev. Proc. 97–49, 1997–2 C.B. 523.

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.

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

Rev. Proc. 91–71, 1991–2 C.B. 900.

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.

2000–1 I.R.B.

35

Sec. 9.01
January 3, 2000

4980B

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

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

Rev. Proc. 99–27, 1999–23 I.R.B. 7 (this revenue procedure is available only for requests
for relief received on or before May 31, 2001).

7704(g)
Revocation of election

Notice 98–3, 1998–1 C.B. 333.

SUBJECT MATTERS

REVENUE PROCEDURE

Accounting methods; obtaining
consent to changes in method

Rev. Proc. 97–27, 1997–1 C.B. 680; and Rev. Proc. 2000–1 (this revenue procedure) for
which sections 1, 2.01, 2.02, 2.06, 3.01(2), 3.01(3), 3.01(4), 5.02, 5.12, 5.14, 7.01, 7.02,
7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(7), 8.01(8), 8.01(11),
8.01(12), 8.01(13), 8.01(14), 8.02(2), 8.02(4), 8.02(5), 8.02(7), 8.02(8), 8.03(1), 8.04,
8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 10.10(2), 10.11, 11, 12.01,
12.02, 12.06–12.11, 15, and Appendix A are applicable.

Accounting periods; adopt, retain
or change for partnership,
S corporation, and personal
service corporation

Rev. Proc. 87–32, 1987–2 C.B. 396, as modified by T.D. 8680, 1996–2 C.B. 194; and
Rev. Proc. 2000–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01(3),
5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6),
8.01(7), 8.01(8), 8.01(11), 8.01(12), 8.01(13), 8.01(14), 8.02(2), 8.02(4), 8.02(5), 8.02(7),
8.03(1) (only for Forms 1128 filed under section 6.01 of Rev. Proc. 87–32), 8.04, 8.05, 8.06,
8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 11, 12, 15, and Appendix A are applicable.

Accounting periods;
changes in periods

Rev. Proc. 92–13, 1992–1 C.B. 665, as modified and amplified by Rev. Proc. 92–13A,
1992–1 C.B. 668, and as modified by Rev. Proc. 94–12, 1994–1 C.B. 565; and Rev. Proc.
2000–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01(3), 5.02, 5.12,
5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(7), 8.01(8),
8.01(11), 8.01(12), 8.01(13), 8.01(14), 8.02(2), 8.02(4), 8.02(5), 8.02(7), 8.03(1), 8.04,
8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 11, 12, 15, and Appendix A are
applicable.

Classification of liquidating trusts

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

Earnings and profits determinations

Rev. Proc. 75–17, 1975–1 C.B. 677; and Rev. Proc. 2000–1 (this revenue procedure) for
which sections 2.06, 3.01(3), 8, 10.04, 10.06, and 11.05 are applicable.

Estate, gift, and generation-skipping
transfer tax issues

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

Deferred intercompany
transactions; election not to defer
gain or loss

Rev. Proc. 82–36, 1982–1 C.B. 490.

Leveraged leasing

Rev. Proc. 75–21, 1975–1 C.B. 715, as modified by Rev. Proc. 76–30, 1976–2 C.B. 647,
Rev. Proc. 79–48, 1979–2 C.B. 529, and Rev. Proc. 81–71, 1981–2 C.B. 731; and Rev.
Proc. 75–28, 1975–1 C.B. 752, as modified by Rev. Proc. 79–48 and Rev. Proc. 81–71.

Rate orders; regulatory agency;
normalization

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

Sec. 9.01
January 3, 2000

36

2000–1 I.R.B.

(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 national office
conference concerning the request.
If the taxpayer or the regulatory authority informs a consumer advocate of the request for
a letter ruling and the advocate wishes to communicate with the Service regarding the request, any such communication should be sent to: Internal Revenue Service, Associate
Chief Counsel (Domestic), Attention CC:DOM:CORP:TSS, P.O. Box 7604, Ben Franklin
Station, Washington, D.C. 20044 (or, if a private delivery service is used: Internal Revenue Service, Associate Chief Counsel (Domestic), Attention CC:DOM:CORP:TSS,
Room 6561, 1111 Constitution Avenue, N.W., Washington, D.C. 20224). These communications will be treated as third party contacts for purposes of § 6110.
Unfunded deferred compensation

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

Safe harbor revenue procedures

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

CODE OR REGULATION SECTION

REVENUE PROCEDURE

103 and 141–150
Issuance of state or local obligations

Rev. Proc. 93–17, 1993–1 C.B. 507 (changes of use of proceeds); and Rev. Proc. 93–19,
1993–1 C.B. 526 (management contracts).

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

Rev. Proc. 95–27, 1995–1 C.B. 704.

355(a)(1)(B)
Transaction not violating the
device test

Section 4.05(1)(b) of Rev. Proc. 96–30, 1996–1 C.B. at 705.

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.

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

Rev. Proc. 89–21, 1989–1 C.B. 842, as amplified by Rev. Proc. 90–32, 1990–1 C.B. 546.

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

Rev. Proc. 89–20, 1989–1 C.B. 841, as amplified by Rev. Proc. 90–30, 1990–1 C.B. 534.

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

Rev. Proc. 90–31, 1990–1 C.B. 539.

2000–1 I.R.B.

37

Sec. 9.02
January 3, 2000

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. 98–55, 1998–2 C.B. 645.

20.2056A–2(d)(1)(i) and (d)(1)(ii)
Sample trust language

Rev. Proc. 96–54, 1996–2 C.B. 386.

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 MATTERS

REVENUE PROCEDURE

Certain rent-to-own
contracts treated as leases

Rev. Proc. 95–38, 1995–2 C.B. 397.

Automatic change
revenue procedures

.03 For requests to change an accounting period or accounting method, see the following
automatic change revenue procedures published and in effect as of December 31, 1999. A
taxpayer complying timely with an automatic change revenue procedure will be deemed
to have obtained the consent of the Commissioner to change the taxpayer’s accounting period or accounting method, as applicable.

CODE SECTION

REVENUE PROCEDURE

442
Changes in accounting periods

The automatic change revenue procedures for obtaining a change in annual accounting
period include: Rev. Proc. 92–13, 1992–1 C.B. 665, as modified by Rev. Proc. 94–12,
1994–1 C.B. 565, and as modified and amplified by Rev. Proc. 92–13A, 1992–1 C.B. 668
(certain corporations that have not changed their accounting period within the prior 6 calendar years or other specified time); Rev. Proc. 87–32, 1987–2 C.B. 396, as modified by
§ 301.9100–3 (partnership, S corporation, or personal service corporation seeking a natural business year or an ownership taxable year); Rev. Proc. 68–41, 1968–2 C.B. 943, as
modified by Rev. Proc. 81–40, 1981–2 C.B. 605 (trusts held by certain fiduciaries needing
a workload spread); and Rev. Proc. 66–50, 1966–2 C.B. 1260, as modified by Rev. Proc.
81–40 (individual seeking a calendar year).

446
Changes in accounting methods

The automatic change revenue procedures for obtaining a change in method of accounting
include: Rev. Proc. 99–49, 1999–52 I.R.B. 725 (applies to the changes in methods of accounting that are described in the Appendix of Rev. Proc. 99–49 involving §§ 56, 162,
167, 168, 171, 174, 197, 263, 263A, 404, 446, 451, 454, 455, 461, 467, 471, 472, 475,
585, 1272, 1273, 1278, and 1281, and former § 168); Rev. Proc. 98–58, 1998–2 C.B. 712
(certain taxpayers seeking to change to the installment method of accounting under § 453
for alternative minimum tax purposes for certain deferred payment sales contracts relating
to property used or produced in the trade or business of farming); Rev. Proc. 97–43,
1997–2 C.B. 494 (certain taxpayers required to change their method of accounting as a result of making elections out of certain exemptions from dealer status for purposes of §
475); Rev. Proc. 92–67, 1992–2 C.B. 429 (certain taxpayers with one or more market discount bonds seeking to make a § 1278(b) election or a constant interest rate election); Rev.
Proc. 92–29, 1992–1 C.B. 748 (certain taxpayers seeking to use an alternative method
under § 461(h) for including common improvement costs in basis); and Rev. Proc. 91–51,
1991–2 C.B. 779 (certain taxpayers under examination that sell mortgages and retain
rights to service the mortgages).

Sec. 9.02
January 3, 2000

38

2000–1 I.R.B.

SECTION 10. HOW DOES THE
NATIONAL OFFICE HANDLE
LETTER RULING REQUESTS?
The national office 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.
Controls request and refers it to
appropriate Assistant Chief
Counsel or to the Office of
Associate Chief Counsel
(International)

.01 All requests for letter rulings will be controlled by the Technical Services Staff of
the Assistant Chief Counsel (Corporate) (CC:DOM:CORP:TSS). That office will
examine the incoming documents for completeness, process the user fee, and forward the
file to the appropriate Assistant Chief Counsel or, for letter ruling requests under the
jurisdiction of the Associate Chief Counsel (International), to the Office of Associate
Chief Counsel (International). The Assistant Chief Counsel’s office or the Office of Associate Chief Counsel (International), as appropriate, will assign the letter ruling request to
one of its branches.

Branch representative
contacts taxpayer within 21 days

.02 Within 21 calendar days after a letter ruling request has been received in the branch
having jurisdiction, a representative of the branch will discuss the procedural issues in the
letter ruling request with the taxpayer or, if the request includes a properly executed power
of attorney, with the authorized representative unless the power of attorney provides otherwise. If the case is complex or a number of issues are involved, it may not be possible for
the branch representative to discuss the substantive issues during this initial contact.
However, 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 Service rule as the taxpayer requested, rule adversely on the matter, or not rule;
(2) whether the taxpayer should submit additional information to enable the Service to
rule on the matter; or
(3) whether, because of the nature of the transaction or the issue presented, a tentative
conclusion on the issue cannot be reached.
Except for cases involving a request for change in accounting method or accounting
period, the 21 calendar day procedure applies to: all matters within the jurisdiction
of the Assistant Chief Counsel (Corporate), the Assistant Chief Counsel (Income Tax
and Accounting), the Assistant Chief Counsel (Passthroughs and Special Industries),
the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), and the Associate Chief Counsel (International); and all matters within the jurisdiction of the Assistant Chief Counsel
(Financial Institutions and Products), except cases concerning insurance issues requiring actuarial computations.

Notifies taxpayer if any issues
have been referred to another
branch or office

.03 If the letter ruling request involves matters within the jurisdiction of more than one
branch or office, a representative of the branch that received the original request will tell
the taxpayer within the initial 21 days—
(1) that the matters within the jurisdiction of another branch or office have been referred
to that branch or office for consideration; and
(2) that a representative of that branch or office will contact the taxpayer within 21 calendar days after receiving the referral to discuss informally the procedural and, to the extent possible, the substantive issues in the request.

Determines if transaction can be
modified to obtain favorable

2000–1 I.R.B.

.04 If a less than fully favorable letter ruling is indicated, the branch representative will
tell the taxpayer whether minor changes in the transaction or adherence to certain

39

Sec. 10.03
January 3, 2000

letter ruling

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. However, 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 method or accounting period.
If, at the end of this discussion, the branch representative determines that a meeting in the
national 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 11.02 of this revenue procedure.

Is not bound by informal
opinion expressed

.05 The Service will not be bound by the informal opinion expressed by the branch
representative or any other authorized Service representative, 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

.06 If a request for a letter ruling or determination letter does not comply with all the
provisions of this revenue procedure, the branch representative will tell the taxpayer
during the initial contact which requirements have not been met.

Information must be submitted
within 21 calendar days

(1) 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 branch representative will tell the taxpayer during the initial contact that the request will be closed if
the Service does not receive the information within 21 calendar days unless an extension
of time is granted. See sections 10.07(1), (2), and (3) of this revenue procedure for instructions on submissions of additional information. To facilitate prompt action on letter
ruling requests, taxpayers are encouraged to request that the Service request additional information by fax. See section 8.02(5) of this revenue procedure.

21-day period will be extended
if justified and approved

(2) An extension of the 21-day period will be granted only if justified in writing by the
taxpayer and approved by the branch chief, senior technician reviewer (or senior technical
reviewer), or assistant to the branch chief (or assistant branch chief) of the branch to which
the case is assigned. A request for extension should be submitted before the end of the 21day period. If unusual circumstances close to the end of the 21-day period make a written
request impractical, the taxpayer should notify the national office within the 21-day period
that there is a problem and that the written request for extension will be coming soon. The
taxpayer will be told promptly, and later in writing, of the approval or denial of the requested extension. If the extension request is denied, there is no right of appeal.

Letter ruling request closed if
the taxpayer does not submit
information

(3) If the taxpayer does not submit the information requested during the initial contact
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. However, the taxpayer must pay another user fee before the case can be reopened.

Letter ruling request mistakenly
sent to district director

(4) A request for a letter ruling sent to the district director that does not comply with the
provisions of this revenue procedure will be returned by the district director so that the
taxpayer can make corrections before sending it to the national office.

Requires prompt submission
of additional information
requested after initial contact

Sec. 10.03
January 3, 2000

.07
(1) Material facts furnished to the Service by telephone or fax, or orally at a conference,
must be promptly confirmed by letter to the Service. This confirmation and any additional information requested by the Service that is not part of the information requested during the initial contact must be furnished within 21 calendar days to be considered part of the request.

40

2000–1 I.R.B.

Additional information submitted to the Service must be accompanied by the following
declaration: “Under penalties of perjury, I declare that I have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and complete.” This declaration must be
signed in accordance with the requirements in section 8.01(13)(b) of this revenue procedure. A taxpayer who submits additional factual information on several occasions may
provide one declaration subsequent to all submissions that refers to all submissions.
To facilitate prompt action on letter ruling requests, taxpayers are encouraged to request
that the Service request additional information by fax. See section 8.02 (5) of this revenue
procedure. Taxpayers also are encouraged to submit additional information by fax as soon
as the information is available. The Service representative who requests additional information can provide a telephone number to which the information can be faxed. A copy of
this information and a signed perjury statement, however, must be mailed or delivered to
the Service.
Address to send additional
information

(2)(a) If a private delivery service is not used, the additional information should be
sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Service
representative who requested
the information]
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
However, for cases involving a request for change in accounting method or period under
the jurisdiction of the Assistant Chief Counsel (Income Tax and Accounting), and a §
301.9100 request for an extension of time on such cases, the additional information should
be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Service
representative who requested
the information]
P.O. Box 14095
Ben Franklin Station
Washington, D.C. 20044
(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 Service
representative who requested
the information]
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
(c) For all cases, the additional information should include the name, office symbols, and

2000–1 I.R.B.

41

Sec. 10.07(2)
January 3, 2000

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.
However, in appropriate cases, the national office may request additional copies of the information.

21-day period will be extended
if justified and approved

(4) An extension of the 21-day period will be granted only if justified in writing by the
taxpayer and approved by the branch chief, senior technician reviewer (or senior technical reviewer), or assistant to the branch chief (or assistant branch chief) of the branch
to which the case is assigned. A request for 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 national office
within the 21-day period that there is a problem and that the written request for extension will be coming soon. The taxpayer will be told promptly, and later in writing, of
the approval or denial of the requested extension. If the extension request is denied,
there is no right of appeal.

If taxpayer does not submit
additional information

(5) If the taxpayer does not follow the instructions for submitting additional information
or requesting an extension within the time provided, a letter ruling will be issued on the
basis of the information on hand or, if appropriate, no letter ruling will be issued.
When the Service decides not to issue a letter ruling because additional information was
not timely submitted, the case will be closed and the taxpayer notified in writing. If the
Service receives the information after the letter ruling request is closed, the request
may be reopened and treated as a new request. However, the taxpayer must pay another user fee before the case can be reopened.

Near the completion of the
ruling process, advises the
taxpayer of conclusions and,
if the Service will rule adversely,
offers the taxpayer the
opportunity to withdraw the
letter ruling request

.08 Generally, after the conference of right is held but before the letter ruling is issued,
the branch representative will inform the taxpayer or the taxpayer’s representative of the
Service’s 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 branch representative of a decision
to withdraw the ruling request, the adverse letter ruling will be issued. The user fee will
not be refunded for a letter ruling request that is withdrawn. See section 8.07 of this revenue procedure.

May request draft of proposed
letter ruling near the completion
of the ruling process

.09 To accelerate issuance of letter rulings, in appropriate cases near the completion of
the ruling process, the Service representative may request that the taxpayer or the
taxpayer’s representative submit a proposed draft of the letter ruling on the basis of discussions of the issues. The taxpayer, however, is not required to prepare a draft letter ruling to receive a letter ruling.
The format of the submission should be discussed with the Service representative who
requests the draft letter ruling. The representative usually can provide a sample format of
a letter ruling and will discuss the facts, analysis, and letter ruling language to be included.

Taxpayer may also submit
draft on a computer disk in a
word processing format

In addition to a typed draft, taxpayers are encouraged to submit this draft on a computer
disk in a word processing format acceptable to the Service. The typed draft will become
part of the permanent files of the national office, and the computer disk will not be returned. If the Service representative requesting the draft letter ruling cannot answer specific questions about the word processing format, the questions can be directed to Wayne
Thomas at 202-622-7560 (not a toll-free call).
The proposed letter ruling (both typed draft and computer 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). See section 10.07 of this revenue procedure.

Sec. 10.07(2)
January 3, 2000

42

2000–1 I.R.B.

Issues separate letter rulings
for substantially identical letter
rulings and generally issues a
single letter ruling for identical
accounting method changes

.10
(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 will be issued for each entity with
a common member or sponsor, or for each member of a common entity.
(2) Identical accounting method changes and related § 301.9100 letter rulings. For
letter ruling requests qualifying for the user fee provided in paragraphs (A)(5)(b) and (c)
of Appendix A of this revenue procedure for identical accounting method changes and related § 301.9100 letter rulings, a single letter ruling generally will be issued on behalf of
all members of a consolidated group that file a Form 3115, Application for Change in Accounting Method, or that file a § 301.9100 request for an extension of time to file a Form
3115. However, the branch to which the case is assigned may, at its discretion, issue separate letter rulings for certain members or groups of members within a consolidated group.
For example, separate letter rulings may be issued if different terms and conditions are required. Each letter ruling will include an attachment listing the § 481(a) adjustment for
each member to which the letter ruling applies.

Sends copy of letter ruling
to district director

.11 The national office will send a copy of the letter ruling, whether favorable or adverse,
to the district director who has examination jurisdiction of the taxpayer’s tax return.

SECTION 11. 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 national 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. As stated in section
8.02(7) 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 10.07(4) 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 in the national
office, except as explained under section 11.05 of this revenue procedure. This conference is
normally held at the branch level and is attended by a person who, at the time of the conference, has the authority to sign the letter ruling in his or her own name or for the branch chief.
When more than one branch has taken an adverse position on an issue in a letter ruling
request or when the position ultimately adopted by one branch will affect that adopted by
another, a representative from each branch with the authority to sign in his or her own
name or for the branch chief will attend the conference. If more than one subject is to be
discussed at the conference, the discussion will constitute a conference on each subject.
To have a thorough and informed discussion of the issues, the conference usually will be
held after the branch has had an opportunity to study the case. 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 branch to an assistant chief counsel or to
any other official of the Service. But see section 11.05 of this revenue procedure for situations in which the Service may offer additional conferences.

2000–1 I.R.B.

43

Sec. 11.02
January 3, 2000

In employment tax matters, only the party entitled to the letter ruling is entitled to a conference. See section 5.09 of this revenue procedure.
Disallows verbatim
recording of conferences

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

Makes tentative
recommendations on
substantive issues

.04 The senior Service representative present at the conference ensures that the taxpayer
has the opportunity to present views on all the issues in question. A Service representative
explains the Service’s tentative decision on the substantive issues and the reasons for that
decision. If the taxpayer asks the Service to limit the retroactive effect of any letter ruling
or limit the revocation or modification of a prior letter ruling, a Service representative will
discuss the recommendation concerning this issue and the reasons for the recommendation. The Service representatives will not make a commitment regarding the conclusion
that the Service will finally 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 branch level, if the Service decides they are needed. Such conferences are
not offered as a matter of course simply because the branch has reached an adverse decision. In general, conferences with higher level officials are offered only if the 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 national office any additional data, reasoning,
precedents, etc., that were proposed by the taxpayer and discussed at the conference but
not previously or adequately presented in writing. The taxpayer must furnish the additional information within 21 calendar days from the date of the conference. See section
10.07 of this revenue procedure for instructions on submission of additional information.
If the additional information is not received within that time, a letter ruling will be issued
on the basis of the information on hand or, if appropriate, no ruling will be issued.
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 10.07(4) of this revenue procedure regarding submitting additional information.

May schedule a pre-submission
conference

.07 Sometimes it will be advantageous to both the Service and the taxpayer to hold
a conference before the taxpayer submits the letter ruling request to discuss substantive or
procedural issues relating to a proposed transaction. Such conferences are held only if the
taxpayer actually intends to make a request, only if the request involves a matter on which
a letter ruling is ordinarily issued, and only at the discretion of the Service and as time permits. For example, a pre-submission conference will not be held on an income tax issue
if, at the time the pre-submission conference is requested, the identical issue is involved in
the taxpayer’s return for an earlier period and that issue is being examined by a district director. See section 5.01(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.
(1) Taxpayer may request a pre-submission conference in writing or by telephone.
A taxpayer may request a pre-submission conference in writing or by telephone. If sub-

Sec. 11.02
January 3, 2000

44

2000–1 I.R.B.

mitted in writing, the request should identify the associate or assistant chief counsel office
expected to have jurisdiction over the request for a letter ruling and include a brief explanation of the primary issue so that an assignment to the appropriate branch can be made.
A written request for a pre-submission conference should be sent to the appropriate address listed in section 8.03(1) of this revenue procedure.
To request a pre-submission conference by telephone, call:
(a) (202) 622-7710 (not a toll-free call) for matters under the jurisdiction of the Assistant Chief Counsel (Corporate);
(b) (202) 622-3900 (not a toll-free call) for matters under the jurisdiction of the Assistant Chief Counsel (Financial Institutions and Products);
(c) (202) 622-4800 (not a toll-free call) for matters under the jurisdiction of the Assistant Chief Counsel (Income Tax and Accounting);
(d) (202) 622-3000 (not a toll-free call) for matters under the jurisdiction of the Assistant Chief Counsel (Passthroughs and Special Industries);
(e) (202) 622-6000 (not a toll-free call) for matters under the jurisdiction of the Office
of the Associate Chief Counsel (Employee Benefits and Exempt Organizations);
(f) (202) 622-3600 (not a toll-free call) for matters under the jurisdiction of the Office
of the Associate Chief Counsel (Enforcement Litigation); or
(g) (202) 622-3800 (not a toll-free call) for matters under the jurisdiction of the Office
of the Associate Chief Counsel (International).
(2) Pre-submission conferences generally held in person. Pre-submission conferences
generally will be held in person at the national office. However, if the taxpayer is unable
to attend the conference, the conference may be conducted by telephone.
(3) Certain information required to be submitted to the national office prior to the presubmission conference. Generally, the taxpayer will be asked to provide at least 3 business
days before the scheduled pre-submission conference a statement of whether the issue is an
issue on which a letter ruling is ordinarily issued and a draft of the letter ruling request or
other detailed written statement of the proposed transaction, issue, and legal analysis. If the
taxpayer’s authorized representative will attend the pre-submission conference, a power of attorney form is required. It is preferred that Form 2848, Power of Attorney and Declaration of
Representative, be used to provide the representative’s authorization. If multiple taxpayers
and/or their authorized representatives will attend the pre-submission conference, cross powers of attorney (or tax information authorizations) are required.
(4) Discussion of substantive issues is not binding on the Service. Any discussion of
substantive issues at a pre-submission conference is advisory only, is not binding on the
Service in general or on the Office of Chief Counsel in particular, and cannot be relied
upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).
Under limited circumstances,
may schedule a conference
to be held by telephone

2000–1 I.R.B.

.08 Infrequently, taxpayers 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, D.C.. If a taxpayer makes such a request, the branch chief, senior technician
reviewer (or senior technical reviewer), or assistant to the branch chief (or assistant branch
chief) of the branch to which the case is assigned will decide if it is appropriate in the particular case to hold the conference of right by telephone. If the request is approved, the
taxpayer will be advised when to call the Service representatives (not a toll-free call).

45

Sec. 11.07
January 3, 2000

SECTION 12. WHAT EFFECT
WILL A LETTER RULING
HAVE?
May be relied on subject
to limitations

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

Will not apply to
another taxpayer

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

Will be used by a district
director in examining the
taxpayer’s return

.03 When determining a taxpayer’s liability, the district director 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 statement of the material facts;
(3) the transaction was carried out substantially as proposed; and
(4) there has been any change in the law that applies to the period during which the
transaction or continuing series of transactions were consummated.
If, when determining the liability, the district director finds that a letter ruling should be
revoked or modified, the findings and recommendations of the district director will be forwarded to the national office for consideration before further action is taken by the district
director. Such a referral to the national office will be treated as a request for technical advice and the provisions of Rev. Proc. 2000–2 will be followed. Otherwise, the letter ruling
is to be applied by the district director in the determination of the taxpayer’s liability. Appropriate coordination with the national office 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.

May be revoked or modified
if found to be in error

.04 Unless it was part of a closing agreement as described in section 2.02 of this revenue
procedure, a letter ruling found to be in error or not in accord with the current views of the Service
may be revoked or modified. If a letter ruling is revoked or modified, the revocation or modification applies to all years open under the statute of limitations unless the Service uses its discretionary authority under § 7805(b) to limit the retroactive effect of the revocation or modification.
A letter ruling may be revoked or modified due to—
(1) a notice to the taxpayer to whom the letter ruling was issued;
(2) the enactment of legislation or ratification of a tax treaty;
(3) a decision of the United States Supreme Court;
(4) the issuance of temporary or final regulations; or
(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement published in the Internal Revenue Bulletin.
Consistent with these provisions, if a letter ruling relates to a continuing action or a series
of actions, it ordinarily will be applied until any one of the events described above occurs
or until it is specifically withdrawn.
Publication of a notice of proposed rulemaking will not affect the application of any letter ruling issued under this revenue procedure.

Sec. 11.07
January 3, 2000

46

2000–1 I.R.B.

Not generally revoked or
modified retroactively

.05 Except in rare or unusual circumstances, the revocation or modification of a letter
ruling will not be applied retroactively to the taxpayer for whom the letter ruling was issued or to a taxpayer whose tax liability was directly involved in the letter ruling provided
that—
(1) there has been no misstatement or omission of material facts;
(2) the facts at the time of the transaction are not materially different from the facts on
which the letter ruling was based;
(3) there has been no change in the applicable law;
(4) the letter ruling was originally issued for a proposed transaction; and
(5) the taxpayer directly involved in the letter ruling acted in good faith in relying on the
letter ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer’s detriment. For example, the tax liability of each shareholder is directly involved
in a letter ruling on the reorganization of a corporation. However, the tax liability of a
member of an industry is not directly involved in a letter ruling issued to another member
and, therefore, the holding in a revocation or modification of a letter ruling to one member
of an industry may be retroactively applied to other members of the industry. By the same
reasoning, a tax practitioner may not extend to one client the non-retroactive application
of a revocation or modification of a letter ruling previously issued to another client.
If a letter ruling is revoked or modified by letter with retroactive effect, the letter will, except in fraud cases, state the grounds on which the letter ruling is being revoked or modified and explain the reasons why it is being revoked or modified retroactively.

Retroactive effect of revocation
or modification applied 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 application of that letter ruling to
the transaction will not be affected by the later issuance of regulations (either temporary or
final) if conditions (1) through (5) in section 12.05 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.

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 Associate Chief Counsel (Domestic), the Associate Chief Counsel (Employee
Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International), as appropriate, ordinarily will limit
the retroactive effect of the revocation or modification to a date that is not earlier than that
on which the letter ruling is revoked or modified. For example, the retroactive effect of
the revocation or modification of a letter ruling covering a continuing action or series of
actions ordinarily would be limited in the following situations when the letter ruling is in
error or no longer in accord with the position of the Service:
(1) A taxpayer received a letter ruling that certain payments are excludable from gross
income for federal income tax purposes. However, the taxpayer ordinarily would be protected only for the payment received after the letter ruling was issued and before the revocation or modification of the letter ruling.
(2) A taxpayer rendered a service or provided a facility that is subject to the excise tax on
services or facilities and, in relying on a letter ruling received, did not pass the tax on to
the user of the service or the facility.

2000–1 I.R.B.

47

Sec. 12.07
January 3, 2000

(3) An employer incurred liability under the Federal Insurance Contributions Act but, in
relying on a letter ruling received, neither collected the employee tax nor paid the employee and employer taxes under the Federal Insurance Contributions Act. The retroactive
effect would be limited for both the employer and employee tax. However, the limitation
would be conditioned on the employer furnishing wage data, as may be required by
§ 31.6011(a)–1 of the Employment Tax Regulations.
Generally not retroactively
revoked or modified if related
to sale or lease subject to
excise tax

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

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

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

May be retroactively revoked
or modified when transaction
is entered into after a change
in material facts

.10 If a letter ruling is issued covering a particular transaction and the material facts on
which the letter ruling is based are later changed, a taxpayer is not protected against
retroactive revocation or modification of the letter ruling when the transaction is
completed after the change in the material facts. Similarly, a taxpayer is not protected
against retroactive revocation or modification of a letter ruling involving a continuing action or a series of actions occurring after the material facts on which the letter ruling is
based have changed.

Taxpayer may request that
retroactivity be limited

.11 Under § 7805(b), the Service may prescribe any extent to which a revocation or
modification of a letter ruling or determination letter will be applied without retroactive
effect.
A taxpayer to whom a letter ruling or determination letter has been issued may request
that the Associate Chief Counsel (Domestic), the Associate Chief Counsel (Employee
Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International), as appropriate, limit the retroactive
effect of any revocation or modification of the letter ruling or determination letter.

Format of request

(1) Request for relief under § 7805(b) must be made in required format.
A request to limit the retroactive effect of the revocation or modification of a letter ruling
must be in the general form of, and meet the general requirements for, a letter ruling request. These requirements are given in section 8 of this revenue procedure. Specifically,
the request must also—
(a) state that it is being made under § 7805(b);
(b) state the relief sought;
(c) explain the reasons and arguments in support of the relief requested (including a discussion of the five items listed in section 12.05 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 separater 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

Sec. 12.07
January 3, 2000

48

2000–1 I.R.B.

that will have the effect of revoking or modifying the letter ruling. However, when notice
is given by the district director during an examination of the taxpayer’s return or by the
chief, appeals office, 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 18.03 of Rev. Proc. 2000–2.
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 national office as explained in sections 11.02, 11.04,
and 11.05 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 11.02 of this revenue procedure. If the request for the application of
§ 7805(b) relief is made as part of a pending letter ruling request after a conference has
been held on the substantive issue and the Service determines that there is justification for
having delayed the request, the taxpayer is entitled to one conference of right concerning
the application of § 7805(b), with the conference limited to discussion of this issue only.

SECTION 13. WHAT EFFECT
WILL A DETERMINATION
LETTER HAVE?
Has same effect as a letter ruling

.01 A determination letter issued by a district director has the same effect as a letter ruling issued to a taxpayer under section 12 of this revenue procedure.
If a district director proposes to reach a conclusion contrary to that expressed in a determination letter, he or she need not refer the matter to the national office as is required for a
letter ruling found to be in error. However, the district director must refer the matter to the
national office if the district director 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

Format of request

.02 A district director does not have authority under § 7805(b) to limit the revocation or
modification of the determination letter. Therefore, if a district director proposes to
revoke or modify a determination letter, the taxpayer may request limitation of the retroactive effect of the revocation or modification by asking the district director who issued the
determination letter to seek technical advice from the national office. See section 18.03 of
Rev. Proc. 2000–2.
(1) Request for relief under § 7805(b) must be made in required format.
A taxpayer’s request to limit the retroactive effect of the revocation or modification of the
determination letter must be in the form of, and meet the general requirements for, a technical advice request. See section 18.03 of Rev. Proc. 2000–2. The request must also—
(a) state that it is being made under § 7805(b);
(b) state the relief sought;

2000–1 I.R.B.

49

Sec. 13.02
January 3, 2000

(c) explain the reasons and arguments in support of the relief sought (including a discussion of the five items listed in section 12.05 of this revenue procedure and any other factors as they relate to the taxpayer’s particular situation); and
(d) include any documents bearing on the request.
Request for conference

(2) Taxpayer may request a conference on application of § 7805(b).
When technical advice is requested regarding the application of § 7805(b), the taxpayer
has the right to a conference in the national office to the same extent as does any taxpayer
who is the subject of a technical advice request. See sections 13 and 18.04 of Rev. Proc.
2000–2.

SECTION 14. UNDER WHAT
CIRCUMSTANCES ARE
MATTERS REFERRED
BETWEEN A DISTRICT
OFFICE AND THE
NATIONAL OFFICE?
Requests for
determination letters

.01 Requests for determination letters received by district directors that, under the
provisions of this revenue procedure, may not be issued by a district office, will be forwarded to the national office for reply. The district office will notify the taxpayer that the
matter has been referred.
District directors will also refer to the national office any request for a determination letter that in their judgment should have the attention of the national office.

No-rule areas

.02 If the request involves an issue on which the Service will not issue a letter ruling or
determination letter, the request will not be forwarded to the national office. The district
office will notify the taxpayer that the Service will not issue a letter ruling or a determination letter on the issue. See section 7 of this revenue procedure for a description of no-rule
areas.

Requests for letter rulings

.03 Requests for letter rulings received by the national office that, under section 5 of this
revenue procedure, may not be acted upon by the national office will be forwarded to the
district 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 7 of this revenue procedure and the Service decides not to issue a letter
ruling or an information letter, the national office will notify the taxpayer and will then
forward the request to the appropriate district office for association with the related return.

SECTION 15. WHAT ARE THE
USER FEE REQUIREMENTS
FOR REQUESTS FOR
LETTER RULINGS AND
DETERMINATION LETTERS?
Legislation authorizing
user fees

Sec. 13.02
January 3, 2000

.01 Section 10511 of the Revenue Act of 1987, 1987–3 C.B. 1, 166, enacted December
22, 1987, as amended by § 11319 of the Omnibus Budget Reconciliation Act of 1990,
1991–2 C.B. 481, 511, enacted November 5, 1990, by § 743 of the Uruguay Round Agreements Act, 1995–1 C.B. 230, 239, enacted December 8, 1994, and by § 2 of the Tax Benefits for Individuals Performing Services in Certain Hazardous Duty Areas, 1996–3 C.B. 1,
enacted March 20, 1996 (hereafter the four laws are referred to together as the “Act”),
provides that the Secretary of the Treasury or delegate (the “Secretary”) shall establish a
program requiring the payment of user fees for requests to the Service for letter rulings,
opinion letters, determination letters, and similar requests. The fees apply to requests
made on or after February 1, 1988, and before October 1, 2003. The fees charged under

50

2000–1 I.R.B.

the program are to: (1) vary according to categories or subcategories established by the
Secretary; (2) be determined after taking into account the average time for, and difficulty
of, complying with requests in each category and subcategory; and (3) be payable in advance. The Secretary is to provide for exemptions and reduced fees under the program as
the Secretary determines to be appropriate, but the average fee applicable to each category
must not be less than the amount specified in the Act.
Requests to which
a user fee applies

.02 In general, user fees apply to all requests for—
(1) letter rulings, determination letters, and advance pricing agreements;
(2) closing agreements described in paragraph (A)(3)(d) of Appendix A of this revenue
procedure;
(3) renewal of advance pricing agreements; and
(4) reconsideration of letter rulings or determination letters.
Requests to which a user fee applies must be accompanied by the appropriate fee as determined from the fee schedule provided in Appendix A of this revenue procedure. The
fee may be refunded as provided in section 15.10 of this revenue procedure.

Requests to which a user
fee does not apply

.03 User fees do not apply to—
(1) elections made pursuant to § 301.9100–2, pertaining to automatic extensions of time
(see section 5.02 of this revenue procedure);
(2) late S corporation and related elections made pursuant to Rev. Proc. 98–55 or Rev.
Proc. 97–48 (see section 5.01(3) of this revenue procedure);
(3) requests for information letters; or
(4) requests for a change in accounting period or accounting method permitted to be
made by a published automatic change revenue procedure (see section 9.03 of this revenue
procedure).

Exemptions from the user
fee requirements

.04 The user fee requirements do not apply to—
(1) departments, agencies, or instrumentalities of the United States that 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 (chapters 21, 22, 23, and 24 of subtitle C of the Code) submitted on Form SS-8, Information for Use in Determining Whether a Worker Is an Employee for Federal Employment Taxes and Income Tax Withholding, or its equivalent.

Fee schedule

.05 The schedule of user fees is provided in Appendix A. For the user fee requirements
applicable to—
(1) requests for advance pricing agreements or renewals of advance pricing agreements,
see section 5.14 of Rev. Proc. 96–53, 1996–2 C.B. at 379; or
(2) requests for letter rulings, determination letters, etc., under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, see Rev. Proc. 2000–8.

2000–1 I.R.B.

51

Sec. 15.04
January 3, 2000

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
involves more than one of the offices within the Service (for example, one issue is under
the jurisdiction of the Associate Chief Counsel (Domestic) and another issue is under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, only
one fee applies, namely the highest fee that otherwise would apply to each of the offices
involved. See Rev. Proc. 2000–8 for the user fees applicable to issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division.
(2) Requests involving several fee categories. If a request dealing with only one transaction involves more than one fee category, only one fee applies, namely the highest fee
that otherwise would apply to each of the categories involved.
(3) Requests involving several issues. If a request dealing with only one transaction involves several issues, a request for a change in accounting method dealing with only one
item or sub-method of accounting involves several issues, or a request for a change in accounting period dealing with only one item involves several issues, the request is treated
as one request. Therefore, only one fee applies, namely the fee that applies to the particular category or subcategory involved. The addition of a new issue relating to the same
transaction or item will not result in an additional fee, unless the issue places the transaction or item in a higher fee category.
(4) Requests involving several unrelated transactions. If a request involves several
unrelated transactions, a request for a change in accounting method involves several unrelated items or sub-methods 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 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 request. An example of a request involving unrelated transactions is a request involving relief under § 301.9100–3 and the underlying issue.
(5) Requests involving several entities. Each entity involved in a transaction (for example, a reorganization) that desires a separate letter ruling in its own name must pay a
separate fee regardless of whether the transaction or transactions may be viewed as related. But see section 15.07 of this revenue procedure.

Applicable user fee for
substantially identical letter
rulings or identical accounting
method changes

.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(3) of
this revenue procedure. To assist in the processing of these user fee requests, all letter ruling requests submitted under this section 15.07 should—
(a) Type or print at the top of the letter ruling request: “REQUEST FOR USER FEE
UNDER SECTION 15.07 OF REV. PROC. 2000–1”;
(b) List on the first page of the submission all taxpayers and entities requesting a letter
ruling (including the taxpayer identification number, and the amount of user fee submitted, for each taxpayer or entity); 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 provided in paragraph (A)(5) of Appendix A of this revenue procedure, the Service will request the proper fee. See section 15.09 of this revenue procedure.

Sec. 15.04
January 3, 2000

52

2000–1 I.R.B.

(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 that requests substantially
identical letter rulings (including accounting period, accounting method, and earnings and
profits requests other than those submitted on Forms 1128, 2553, 3115, and 5452) for either multiple entities with a common member or sponsor, or multiple members of a common entity. To qualify for this user fee, all information and underlying documents must be
substantially identical and all letter ruling requests must be submitted at the same time. In
addition, the letter ruling requests must—
(a) State that the letter ruling requests, and all information and underlying documents,
are substantially identical; and
(b) Specifically identify the extent to which the letter ruling requests, information, and
underlying documents are not identical.
(3) Identical accounting method changes and related § 301.9100 letter rulings. The
user fees provided in paragraphs (A)(5)(b) and (c) of Appendix A of this revenue procedure apply to a parent corporation that requests either the identical accounting method
change on a single Form 3115 on behalf of more than one member of a consolidated group
or an extension of time to file Form 3115 under § 301.9100–3 for the identical accounting
method change on behalf of more than one member of a consolidated group. To qualify
for this user fee, the taxpayers in the consolidated group must be members of the same affiliated group under § 1504(a) that join in the filing of a consolidated tax return and must
be requesting to change from the identical present method of accounting to the identical
proposed method of accounting. All aspects of the requested accounting method change,
including the present and proposed methods, the underlying facts and the authority for the
request, must be identical, except for the § 481(a) adjustment for the year of change, and
the number of years the present method has been used.
In addition, a parent corporation must file a single Form 3115. Besides including all the information required on the Form 3115, the parent corporation must, for each member of a consolidated group for which the accounting method change is being requested, attach to the
Form 3115 a schedule providing its name, employer identification number, § 481(a) adjustment for the year of change, and the number of years the present method has been used. The
Form 3115 must be signed by a duly authorized officer of the parent corporation.
In the case of a § 301.9100 request for an extension of time to file Form 3115, a parent
corporation must submit the information required in the above paragraph in addition to the
information required by section 5.02 of this revenue procedure.
Method of payment

.08 Each request to the Service for a letter ruling, determination letter, advance pricing
agreement, closing agreement described in paragraph (A)(3)(d) of Appendix A of this revenue procedure, or reconsideration of a letter ruling or determination letter must be accompanied by a check or money order, payable to the Internal Revenue Service, in the appropriate amount. (However, the user fee check or money order should not be attached to
the Form 2553, Election by a Small Business Corporation, when it is filed at the Service
Center. If on the Form 2553 the corporation requests a ruling that it be permitted to use a
fiscal year under section 6.03 of Rev. Proc. 87–32, the Service Center will forward the request to the national office. When the national office receives the Form 2553 from the
Service Center, it will notify the taxpayer that the fee is due.) Taxpayers should not send
cash.

Effect of nonpayment or
payment of incorrect amount

.09 If a request is not accompanied by a properly completed check or money order or
is accompanied by a check or money order for less than the correct amount, the respective
office within the Service that is responsible for issuing the letter ruling, determination letter, advance pricing agreement, closing agreement, or reconsideration of a letter ruling or
determination letter generally will exercise discretion in deciding whether to return immediately the request. If a request is not immediately returned, the taxpayer will be contacted

2000–1 I.R.B.

53

Sec. 15.08
January 3, 2000

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. However, the Service will usually defer substantive consideration of a request until proper payment has been received. The return of a request to the taxpayer may adversely affect
substantive rights if the request is not perfected and resubmitted to the Service within 30
days of the date of the cover letter returning the request.
If a request is accompanied by a check or money order for more than the correct amount,
the request will be accepted and the amount of the excess payment will be returned to the
taxpayer.
Refunds of user fee

.10 In general, the user fee will not be refunded unless the Service declines to rule on all
issues for which a ruling is requested.
(1) The following situations are examples of situations in which the user fee will not
be refunded:
(a) The request for a letter ruling, determination letter, etc., is withdrawn at any time subsequent to its receipt by the Service, unless the only reason for withdrawal is that the Service has advised the taxpayer that a higher user fee than was sent with the request is applicable and the taxpayer is unwilling to pay the higher fee.
(b) The request is procedurally deficient, although accompanied by the proper fee or an
overpayment, and is not timely perfected by the requester. When there is a failure to perfect timely the request, the case will be considered closed and the failure to perfect will be
treated as a withdrawal for purposes of this revenue procedure. See section 10.06(3) of
this revenue procedure.
(c) The Service notifies the taxpayer that the Service 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 Service. The failure to submit the additional information will
be treated as a withdrawal for purposes of this revenue procedure. See section 10.07(5) of
this revenue procedure.
(d) A letter ruling, determination letter, etc., is revoked in whole or in part at the initiative
of the Service. The fee paid at the time the original letter ruling, determination letter, etc.,
was requested will not be refunded.
(e) The request contains several issues, and the Service rules on some, but not all, of the
issues. The highest fee applicable to the issues on which the Service rules will not be refunded.
(f) The taxpayer asserts that a letter ruling the taxpayer received covering a single issue
is erroneous or not responsive (other than an issue on which the Service has declined to
rule) and requests reconsideration. The Service, 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 (e) of this section 15.10(1) except
that the letter ruling covered several unrelated transactions. The Service, upon reconsideration, does not agree with the taxpayer that the letter ruling is erroneous or is not responsive for all of the transactions, but does agree that it is erroneous as to one transaction.
The fee accompanying the request for reconsideration will not be refunded except to the
extent applicable to the transaction for which the Service agrees the letter ruling was in
error.
(h) The request is for a supplemental letter ruling, determination letter, etc., concerning a

Sec. 15.08
January 3, 2000

54

2000–1 I.R.B.

change in facts (whether significant or not) relating to the transaction on which the Service
ruled.
(i) The request is for reconsideration of an adverse or partially adverse letter ruling or a
final adverse determination letter, and the taxpayer submits arguments and authorities not
submitted before the original letter ruling or determination letter was issued.

(2) The following situations are examples of situations in which the user fee will be
refunded:
(a) In a situation to which section 15.10(1)(h) 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 Service declined to rule)
and requests reconsideration. The Service agrees, upon reconsideration, that the letter ruling is erroneous or is not responsive. The fee accompanying the taxpayer’s request for reconsideration will be refunded.
(b) In a situation to which section 15.10(1)(h) of this revenue procedure does not apply,
the taxpayer requests a supplemental letter ruling, determination letter, etc., to correct a
mistake that the Service agrees it made in the original letter ruling, determination letter,
etc., such as a mistake in the statement of facts or in the citation of a Code section. Once
the Service agrees that it made a mistake, the fee accompanying the request for the supplemental letter ruling, determination letter, etc., will be refunded.
(c) The taxpayer requests and is granted relief under § 7805(b) in connection with the revocation in whole or in part, of a previously issued letter ruling, determination letter, etc.
The fee accompanying the request for relief will be refunded.
(d) In a situation to which section 15.10(1)(d) of this revenue procedure applied, the taxpayer requests reconsideration of the Service’s decision not to rule on an issue. Once the
Service agrees to rule on the issue, the fee accompanying the request for reconsideration
will be refunded.
(e) The letter ruling is not issued and taking into account all the facts and circumstances,
including the Service’s resources devoted to the request, the assistant chief counsel in his
or her sole discretion decides a refund is appropriate.
Request for reconsideration
of user fee

.11 A taxpayer that believes the user fee charged by the Service for its request for a letter
ruling, determination letter, advance pricing agreement, or closing agreement is either inapplicable or incorrect and wishes to receive a refund of all or part of the amount paid (see
section 15.10 of this revenue procedure) may request reconsideration and, if desired, the
opportunity for an oral discussion by sending a letter to the Service at the address given in
section 8.03 in this revenue procedure. Both the incoming envelope and the letter requesting such reconsideration should be prominently marked “USER FEE RECONSIDERATION REQUEST.” No user fee is required for these requests. The request should be
marked for the attention of:

If the matter involves primarily

Mark for the attention of:

Associate Chief Counsel
(Domestic) letter ruling requests

Assistant Chief Counsel (
)
(Complete by using whichever of the following designations applies.)
(Corporate)
(Financial Institutions and Products)
(Income Tax and Accounting)
(Passthroughs and Special Industries)

2000–1 I.R.B.

55

Sec. 15.11
January 3, 2000

Associate Chief Counsel
(Employee Benefits & Exempt
Organizations) letter ruling requests

Assistant Chief Counsel (Employee Benefits & Exempt Organizations)

Associate Chief Counsel
(Enforcement Litigation)
letter ruling requests

Assistant Chief Counsel (General Litigation)

Associate Chief Counsel
(International) letter ruling and
advance pricing agreement requests

Assistant Chief Counsel (International)

Determination letter requests
submitted pursuant to this
revenue procedure

Chief, Examination Division,
________________________
District Office
(Add name of district office handling the request.)

SECTION 16. WHAT ARE
THE GENERAL
PROCEDURES
APPLICABLE TO
INFORMATION LETTERS
ISSUED BY THE
NATIONAL OFFICE?
Will be made available to
the public

.01 Information letters that are issued by the national office to members of the public
will be made available to the public. These documents provide general statements of welldefined law without applying them to a specific set of facts. See section 2.04 of this revenue procedure. Information letters that are issued by the field or district director, 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 discussion;
(2) responses to taxpayer or third party contacts that are inquiries with respect to a pending
request for a letter ruling, technical advice memorandum, or Chief Counsel Advice (whose
public inspection is subject to § 6110); and
(3) responses to taxpayer or third party communications with respect to any investigation,
audit, litigation, or other enforcement action.

Deletions made under the
Freedom of Information Act

.02 Before any information letter is made available to the public, the national office
will delete any name, address, and other identifying information as appropriate under the
Freedom of Information Act (“FOIA”) (for example, FOIA personal privacy exemption of
5 U.S.C. § 552(b)(6) and tax details exempt pursuant to § 6103, as incorporated into FOIA
by 5 U.S.C. § 552(b)(3)). Because information letters do not constitute written determinations (including Chief Counsel Advice) as defined in § 6110, these documents are not subject to public inspection under § 6110.

Effect of information letters

.03 Information letters are advisory only and have no binding effect on the Service. See
section 2.04 of this revenue procedure. If the national 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.

Sec. 15.11
January 3, 2000

56

2000–1 I.R.B.

SECTION 17. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 99-1?

.01 The titles in this revenue procedure are based on the current organization of the
Service. Accordingly, the Assistant Commissioner (Employee Plans and Exempt Organizations) has been replaced by the Commissioner, Tax Exempt and Government Entities
Division.
.02 Sections 16 through 19 of Rev. Proc. 99–1 have been redesignated as sections 17
through 20 in this revenue procedure. New section 16 is added to provide that information
letters that are issued by the national office to members of the public will be made available to the public. Before being made available to the public, the national office will
delete any name, address, and other identifying information as appropriate under the Freedom of Information Act.
.03 Section 8.01(12) is amended to conform to Notice N(39)1(10)3–1, dated October 22,
1999, which allows the submission of an original, a copy, or a fax of the power of attorney.
.04 Sections 8.02(5)(b) through 8.02(7) of Rev. Proc. 99–1 have been redesignated as
sections 8.02(6) through 8.02(8) in this revenue procedure. Section 8.02(5)(a) of Rev.
Proc. 99–1 has been redesignated as section 8.02(5) in this revenue procedure. New section 8.02(5) is amended to provide the procedures for receiving any document related to
the letter ruling request by fax.
.05 Section 9 is updated to reflect the revenue procedures and notices effective as of December 31, 1999.
.06 Section 11.07 is amended to clarify the procedures relating to pre-submission conferences.
.07 Appendix A is amended to clarify that a taxpayer receiving relief under
§ 301.9100–3 will be charged a separate user fee for the letter ruling request on the underlying issue.

SECTION 18. WHAT IS THE
EFFECT OF THIS
REVENUE PROCEDURE
ON OTHER DOCUMENTS?

.01 Rev. Proc. 99–1, 1999–1 I.R.B. 6, is superseded.
.02 Notice 97–19, 1997–1 C.B. 394, is modified by deleting all references to Rev. Proc.
97–1 and replacing them with references to this revenue procedure.
.03 Rev. Proc. 96–13, 1996–1 C.B. 616, is modified by deleting all references to Rev.
Proc. 96–1 and replacing them with references to this revenue procedure.

SECTION 19. WHAT IS THE
EFFECTIVE DATE OF THIS
REVENUE PROCEDURE?

This revenue procedure is effective January 10, 2000, except that the procedures in section
16 of this revenue procedure are effective only for requests postmarked or, if not mailed,
received after January 1, 2000.

SECTION 20. 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
Reduction Act (44 U.S.C. § 3507) under control number 1545–1522.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.
The collections of information in this revenue procedure are in sections 5.05, 6.07, 8.01,
8.02, 8.03, 8.04, 8.05, 8.07, 9.01 (subject matter—rate orders; regulatory agency; normalization), 10.06, 10.07, 10.09, 11.01, 11.06, 11.07, 12.11, 13.02, 15.02, 15.07, 15.08, 15.09,
and 15.11, paragraph (B)(1) of Appendix A, and Appendix C. 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

2000–1 I.R.B.

57

Sec. 19
January 3, 2000

required by § 6110. The collections of information are required to obtain a letter ruling or
determination letter. The likely respondents are business or other for-profit institutions.
The estimated total annual reporting and/or recordkeeping burden is 305,140 hours.
The estimated annual burden per respondent/recordkeeper varies from 1 to 200 hours,
depending on individual circumstances, with an estimated average burden of 80.3 hours.
The estimated number of respondents and/or recordkeepers is 3,800.
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection of information must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by § 6103.
DRAFTING INFORMATION

The principal author of this revenue procedure is Alan Cooper of the Office of Assistant
Chief Counsel (Passthroughs and Special Industries). For further information regarding
this revenue procedure for matters under the jurisdiction of—
(1) the Associate Chief Counsel (Domestic) or the Associate Chief Counsel (Employee
Benefits and Exempt Organizations), contact Mr. Cooper or Gregory Taitt at (202) 6223110 (not a toll-free call);
(2) the Associate Chief Counsel (International), contact Gerard Traficanti at (202) 6223619 (not a toll-free call); or
(3) the Associate Chief Counsel (Enforcement Litigation), contact Alan C. Levine at
(202) 622-3610 (not a toll-free call).
For further information regarding user fees, contact Wayne Thomas at (202) 622-7560
(not a toll-free call).

Sec. 20
January 3, 2000

58

2000–1 I.R.B.

INDEX
References are to sections in Rev. Proc. 2000–1
Additional Information
– perjury statement required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(1)
– proposed deletions under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.01(9)
– requested during initial contact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.06
failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.06(3)
– subsequent requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07
after conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.06
failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(5)
– where to send . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(2)
Changes in Accounting Method or Period
– applicable sections of Rev. Proc. 99–1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.01
– automatic change revenue procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.03
– identical accounting method changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.02(8), 10.10, 15.07, Appendix A
– user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15, Appendix A
Checklist Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.01(16), Appendix C
Conferences
– offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.04, 11.02
after conference of right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.05
application of § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(9)
– requesting a conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.02(7)
– scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.01, 11.02
application of § 7805(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.11(2), 13.02(2)
pre-submission conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.07
telephone conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.08
Definitions
– closing agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.02
– determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.03
– information letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.04
– letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.01
– national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
– revenue ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.05
– taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Determinations Under § 999(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.03
Discussions Not Binding on Service
– at pre-submission conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.07
– informal opinion expressed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.05
– oral advice to taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.06(2)
Employee Plans and Exempt Organizations
– jurisdiction of Commissioner, Tax Exempt and Government Entities Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.02
– user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.02
Estate Tax Matters
– issuance of determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.02, 6.06
– issuance of letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.05
under § 2032A(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.06

2000–1 I.R.B.

59

January 3, 2000

Expeditious Handling of Letter Ruling and Determination
Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.02(4)
Extension of Time
– to schedule conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.01
– to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.06(2), 10.07(4), 11.06
Fax Transmission
– to receive letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(5)
– to receive request for additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.02(5)
– to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(1)
– to submit letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(6)
Hand Delivery of Letter Ruling Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.03(1)
No-Rule Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Oral Advice to Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.06
Penalties of Perjury Statement
– form for letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(13)(a)
– form for submission of additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(1)
– required with draft letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.09
– signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(13)(b)
Pending Letter Ruling Requests
– when to attach a copy to return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.04
estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.05
– when to notify national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.04
estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.05
Power of Attorney
– Form 2848 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(12) and 8.02(2)
copies sent to multiple representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(2)(a)
original sent to representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(2)(b)
no copy sent to representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(2)(c)
– signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(12)
Public Disclosure of Information Letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
– public inspection under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.01(9)
– signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(9)(c)
Representatives
– compliance with Treasury Department
Circular No. 230 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.08
– power of attorney required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(12)
– requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(11)
employee, general partner, administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(11)
foreign representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(11)
Retroactive Revocation or Modification
– of determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
request to limit retroactive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13.02
– of letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.03–12.10
request to limit retroactive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.11

January 3, 2000

60

2000–1 I.R.B.

Revenue Rulings
– effect on a letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.04
– request to limit retroactive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.11
Sample of a Letter Ruling Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(15), Appendix B
Section 301.9100 Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.02
Section 367 Rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.04
Status of Letter Ruling and Determination Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.06
Substantially Identical Letter Rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(8), 10.10, 15.07, Appendix A
User Fees
– schedule of user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix A
– user fees requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
to reopen case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.06(3), 10.07(5)
Where to Send
– determination letter request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.03(2)
– letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.03(1)
additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.07(2)
hand delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.03(1)
Withdrawal of Letter Ruling and Determination Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.07

2000–1 I.R.B.

61

January 3, 2000

APPENDIX A
SCHEDULE OF USER FEES
(A) FEE SCHEDULE
CATEGORY

FEE

(1) User fee for a determination letter request. The user fee for each determination letter request
governed by Rev. Proc. 2000–1 (this revenue procedure).
(2) User fee for a request for an advance pricing agreement or a renewal of an advance pricing agreement.

$275
See Rev.
Proc. 96–53

(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. 99–1 (this revenue procedure), the user fee for each request for a letter ruling or closing agreement under
the jurisdiction of the Associate Chief Counsel (Domestic), the Associate Chief Counsel (Employee Benefits
and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief
Counsel (International) is as follows:
(a) Accounting periods
(i) Form 1128 (except as provided in paragraph (A)(4)(a) or (b) of this appendix)

$600

(ii) Requests made on Part II of Form 2553 to use a fiscal year based on a business purpose
(except as provided in paragraph (A)(4)(a) or (b) of this appendix)

$600

(iii) Letter ruling requests for extensions of time to file Form 1128, Form 8716, or
Part II of Form 2553 under § 301.9100–3 (except as provided in paragraph
(A)(4)(a) or (b) of this appendix)

$700

(b) Changes in Accounting Methods
(i) Form 3115 (except as provided in paragraph (A)(4)(a) or (b), or (5)(b) of this appendix)
(ii) Letter ruling requests for extensions of time to file Form 3115 under § 301.9100–3
(except as provided in paragraph (A)(4)(a) or (b), or (5)(c) of this appendix)

$1,200

$700

NOTE: No user fee is required if the change in accounting period or accounting method is permitted
to be made pursuant to a published automatic change revenue procedure. See section 9.03 of this
revenue procedure for the list of automatic change revenue procedures published and in effect as of
December 31, 1999.
(c) All other letter ruling requests (which includes accounting period and accounting method requests other
than those properly submitted on Form 1128, Part II of Form 2553, or Form 3115) (except as provided in
paragraph (A)(4)(a) or (b), or (5)(a) of this appendix)

$5,000

(d) 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)

$5,000

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

January 3, 2000

62

2000–1 I.R.B.

CATEGORY

FEE

(4) Reduced user fee for a request for a letter ruling 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 tax issue from a person with gross income (as determined under paragraph
(B)(2) and (4) of this appendix) of less than $150,000

$500

(b) Request involves a business-related tax issue (for example, including home-office expenses, residential
rental property issues) from a person with gross income (as determined under paragraph (B)(3) and (4) of
this appendix) of less than $1 million

$500

(5) User fee for substantially identical letter ruling requests or identical accounting method changes.
If the requirements of section 15.07 of Rev. Proc. 2000–1 (this revenue procedure) are satisfied, the user fee
for the following situations is as follows:
(a) Substantially identical letter rulings requested
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, for each additional letter
ruling request after the $5,000 fee or $500 reduced fee, as applicable, has been paid for the first letter
ruling request

$200

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 accounting method change requested on a single Form 3115
Situations in which a parent corporation requests the identical accounting method change on a single
Form 3115 on behalf of more than one member of a consolidated group, for each additional member of
the group seeking the identical accounting method change on the same Form 3115 after the $1,200 fee
or $500 reduced fee, as applicable, has been paid for the first member of the group

$45

(c) Extension of time requested to file Form 3115 for an identical accounting method change
Situations in which a parent corporation requests an extension of time to file Form 3115 under
§ 301.9100–3 for the identical accounting method change on behalf of more than one member of a
consolidated group, for each additional member of the group seeking the identical accounting method
change on the same application after the $700 fee or $500 reduced fee, as applicable, has been paid for
the first member of the group

$50

NOTE: A parent corporation and each member of a consolidated group that is entitled to the user fee under
paragraph (A)(5)(b) of this appendix, that receives an extension of time to file Form 3115 under § 301.9100–3
will be charged a separate user fee for the accounting method application.
(B) PROCEDURAL MATTERS
(1) Required certification. A person seeking a reduced user fee under paragraph (A)(4) of this appendix must provide the following certification in order to obtain the reduced user fee:
(a) If a person is seeking a reduced user fee under paragraph (A)(4)(a) of this appendix, the person must certify in the request
that his, her, or its gross income, as defined under paragraph (B)(2) and (4) of this appendix, is less than $150,000 for the last 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 paragraph (B)(3) and (4) of this appendix, is less than $1 million for the last full
(12 months) taxable year ending before the date the request is filed.

2000–1 I.R.B.

63

January 3, 2000

(2) Gross income for a request involving a personal tax issue. For purposes of the reduced user fee provided in paragraph
(A)(4)(a) of this appendix of—
(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to “total income” as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period.
“Total income” is a line item on federal tax returns. For example, if the 1997 Form 1040, U.S. Individual Income Tax Return, is the
most recent 12-month taxable year return filed by a U.S. citizen, “total income” on the Form 1040 is the amount entered on line 22.
In the case of a request for a letter ruling or closing agreement from a domestic estate or trust that, at the time the request is filed,
has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this appendix will
apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the last federal income tax
return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to be made to total income described in this paragraph (B)(2)(a), is less than $150,000. In this case, the executor or administrator of the decedent’s estate or the grantor must provide the certification required under paragraph (B)(1) of this appendix.
(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to “total effectively connected
income” as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus any income for the period from United States or foreign sources that is not taxable by the United States,
whether by reason of § 103, an income tax treaty, § 871(h) (regarding portfolio interest), or otherwise, plus the total amount of any
fixed or determinable annual or periodical income from United States sources, the United States tax liability for which is satisfied by
withholding at the source. “Total effectively connected income” is a line item on federal tax returns. For example, if the 1997 Form
1040NR, U.S. Nonresident Alien Income Tax Return, is the most recent 12-month taxable year return filed by a nonresident alien individual, “total effectively connected income” on the Form 1040NR is the amount entered on line 23.
In the case of a request for a letter ruling or closing agreement from a foreign estate or trust that, at the time the request is filed,
has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this appendix will
apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income or total effectively connected income, as
relevant, as reported on the last federal income tax return filed for a full taxable year ending before the date of death or the date of the
transfer, taking into account any additions required to be made to total income or total effectively connected income described respectively in paragraph (B)(2)(a) of this appendix or in this paragraph (B)(2)(b), is less than $150,000. In this case, the executor or
administrator of the decedent’s estate or the grantor must provide the certification required under paragraph (B)(1) of this appendix.
(3) Gross income for a request involving a business-related tax issue. For purposes of the reduced user fee provided in paragraph (A)(4)(b) of this appendix of—
(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to gross income as defined under paragraph (B)(2)(a) of this appendix, plus “cost of goods sold” as reported on the same federal income tax return.
(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to gross income as defined
under paragraph (B)(2)(b) of this appendix, plus “cost of goods sold” as reported on the same federal income tax return.
(c) Domestic partnerships and corporations, “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 1997 Form 1065, U.S. Partnership Return of 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 1997 Form 1120, U.S. Corporation Income Tax Return, is the most recent 12-month taxable year return filed by a domestic corporation, “cost of goods sold” and
“total income” on the Form 1120 are the amounts entered on lines 2 and 11, respectively.

January 3, 2000

64

2000–1 I.R.B.

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 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.
(4) Special rules for determining gross income. For purposes of paragraph (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 who
is legally separated from his or her spouse if the spouses do not file a joint income tax return with each other; 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 that is involved in the
transaction on which the letter ruling or closing agreement is requested, must be combined; and
(2) In the case of a request from a domestic partnership, the gross income (as defined in paragraph (B)(3) of this appendix)
of (i) the partnership, and (ii) any partner who owns, directly or indirectly, 50 percent or more of the capital interest or profits interest in the partnership, must be combined.
(c) Gross income of exempt organizations. If there are two or more organizations exempt from income tax under Subchapter
F filing the request, the gross receipts (as defined in paragraph (B)(3)(d) of this appendix) of the applicants must be combined.

2000–1 I.R.B.

65

January 3, 2000

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
Associate Chief Counsel (Insert one of
the following: Domestic, Employee Benefits
and Exempt Organizations, Enforcement
Litigation, or International)
Attn: CC:DOM:CORP:TSS
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
Dear Sir or Madam:
(Insert the name of the taxpayer) requests a ruling on the proper treatment of (insert the subject matter of the letter ruling request) under section (insert the number) of the Internal Revenue Code.
[If the taxpayer is requesting expeditious handling, a statement to that effect must be attached to, or contained in, the letter ruling
request. The statement must explain the need for expeditious handling. See section 8.02(4) of Rev. Proc. 2000–1, 2000–1 I.R.B. 4.
Hereafter, all references are to Rev. Proc. 2000–1 unless otherwise noted.]
A. STATEMENT OF FACTS
1. Taxpayer Information
[Provide the statements required by sections 8.01(1)(a), (b), and (c).]
2. Description of Taxpayer’s Business Operations
[Provide the statement required by section 8.01(1)(d).]
3. Facts Relating to Transaction
[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling request. This statement must include a detailed description of the transaction, including material facts in any accompanying documents, and the business reasons for the transaction. See sections 8.01(1)(e), 8.01(1)(f), and 8.01(2).]
B. RULING REQUESTED
[The ruling request should contain a concise statement of the ruling requested by the taxpayer. It is preferred that the language of the
requested ruling be exactly the same that 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 encouraged to identify and discuss any authorities believed
to be contrary to the position advanced in the ruling request. See sections 8.01(6), 8.01(7), and 8.01(8).]

January 3, 2000

66

2000–1 I.R.B.

D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also is encouraged to identify and
discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 8.01(3), 8.01(6), 8.01(7),
and 8.01(8).]
E. CONCLUSION
[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]
F. PROCEDURAL MATTERS
1. Revenue Procedure 2000–1 Statements
a. [Provide the statement required by section 8.01(4) 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.]
b. [Provide the statement required by section 8.01(5)(a) regarding whether the Service previously ruled on the same or similar
issue for the taxpayer, a related taxpayer, or a predecessor.]
c. [Provide the statement required by section 8.01(5)(b) regarding whether the taxpayer, a related taxpayer, a predecessor, or
any representatives previously submitted a request (including an application for change in accounting method) 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 8.01(5)(c) regarding whether the taxpayer, a related taxpayer, or a predecessor
previously submitted a request (including an application for change in accounting method) involving the same or a similar
issue that is currently pending with the Service.]
e. [Provide the statement required by section 8.01(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 accounting method) involving
the same or similar issue to the Service.]
f. [Provide the statement required by section 8.01(6) regarding whether the law in connection with the letter ruling request is
uncertain and whether the issue is adequately addressed by relevant authorities.]
g. [If the taxpayer determines that there are no contrary authorities, a statement to that effect would be helpful. See section
8.01(7).]
h. [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 8.02(7).]
i. [If the taxpayer is requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax) transmission, the ruling request should contain a statement to that effect. See section 8.02(5).]
j. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement to
that effect. See section 8.02(1).]
k. [If the taxpayer is seeking to obtain the user fee provided in paragraph (A)(5)(a) of Appendix A for substantially identical letter rulings, the letter ruling request must contain the statements required by section 15.07.]
2. Administrative
a. [The ruling request should state: “The deletions statement and checklist required by Rev. Proc. 2000–1 are enclosed.” See
sections 8.01(9) and 8.01(16).]
b. The ruling request should state: “The required user fee of $(Insert the amount of the fee) is enclosed.”
Appendix A.]

2000–1 I.R.B.

67

See section 15 and

January 3, 2000

c. [If the taxpayer’s authorized representative is to sign the letter ruling request or is to appear before the Service in connection
with the request, the ruling request should state: “A Power of Attorney is enclosed.” See sections 8.01(11), 8.01(12), and
8.02(2).]

Very truly yours,

(Insert the name of the taxpayer or the taxpayer’s authorized representative)
By:
_______________________________
Signature

________
Date

_______________________________
Typed or printed name of
person signing request
DECLARATION: [See section 8.01(13).]
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my
knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete.

(Insert the name of the taxpayer)
By:
__________________________________
Signature

___________________________________
Title

_______
Date

__________________________________
Typed or printed name of
person signing declaration
[If the taxpayer is a corporation that is a member of an affiliated group filing consolidated returns, the above declaration must also be
signed and dated by an officer of the common parent of the group. See section 8.01(13).]

January 3, 2000

68

2000–1 I.R.B.

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. To ensure
that your request is in order, use this checklist. Complete the five items of information requested before the checklist. Answer each
question by circling “Yes,” “No,” or “N/A.” When a question contains a place for a page number, insert the page number (or numbers) of the request that gives the information called for by a yes answer to a question. Sign and date the checklist (as taxpayer or
authorized representative) and place it on top of your request.
If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with the request, or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist is
submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will not
either cause the return of your request or defer substantive consideration of your 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.

_________________________________________________________

DISTRICT HAVING AUDIT JURISDICTION ________________________________________
ATTORNEY/P.O.A. _____________________________________________________________
PRIMARY CODE SECTION ______________________________________________________

CIRCLE ONE

ITEM

Yes No

1. Does your request involve an issue under the jurisdiction of the Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International)? See section 3 of Rev. Proc.
2000–1, 2000–1 I.R.B. 4. For issues under the jurisdiction of other offices, see section 4 of Rev. Proc.
2000–1. (Hereafter, all references are to Rev. Proc. 2000–1 unless otherwise noted.)

Yes No

2. Have you read Rev. Proc. 2000–3, 2000–1 I.R.B. 103, and Rev. Proc. 2000–7, 2000–1 I.R.B. 227, to
see if part or all of the request involves a matter on which letter rulings are not issued or are ordinarily not
issued?

Yes No N/A

3. If your request involves a matter on which letter rulings are not ordinarily issued, have you given
compelling reasons to justify the issuance of a letter ruling? Before preparing your request, you may
want to call the branch in the Office of the Associate Chief Counsel (Domestic), the Office of the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Office of the Associate Chief
Counsel (Enforcement Litigation), or the Office of the Associate Chief Counsel (International) responsible for substantive interpretations of the principal Internal Revenue Code section on which you are seeking a letter ruling to discuss the likelihood of an exception. For matters under the jurisdiction of—
(a) the Office of Associate Chief Counsel (Domestic) and the Office of Associate Chief Counsel
(Employee Benefits and Exempt Organizations), the appropriate branch to call may be obtained by calling (202) 622-7560 (not a toll-free call);
(b) the Office of the Associate Chief Counsel (International), the appropriate branch to call may be
obtained by calling (202) 622-3800 (not a toll-free call); or

2000–1 I.R.B.

69

January 3, 2000

(c) the Office of the Associate Chief Counsel (Enforcement Litigation), the appropriate branch to call
may be obtained by calling (202) 622-3600 (not a toll-free call).
Yes No N/A
Page ____

4. If the request deals with a completed transaction, have you filed the return for the year in which the
transaction was completed? See sections 5.01, 5.05, 5.06, 5.07, 5.08, and 5.09.

Yes No

5. Are you requesting a letter ruling on a hypothetical situation or question? See section 7.02.

Yes No

6. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 7.02.

Yes No

7. Are you requesting the letter ruling for only part of an integrated transaction? See sections 7.03 and
8.01(1).

Yes No

8. 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 5.11.

Yes No

9. Are you requesting the letter ruling for a foreign government or its political subdivision? See section
5.12.

Yes No
Pages ___

10. Have you included a complete statement of all the facts relevant to the transaction? See section
8.01(1).

Yes No N/A

11. Have you submitted with the request true copies of all wills, deeds, and other documents relevant to
the transaction, and labeled and attached them in alphabetical sequence? See section 8.01(2).

Yes No N/A

12. Have you submitted with the request a copy of all applicable foreign laws, and certified English
translations of documents that are in a language other than English or of foreign laws in cases where English is not the official language of the foreign country involved? See section 8.01(2).

Yes No
Pages ___

13. Have you included, rather than merely incorporated 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 8.01(3).

Yes No
Page ____

14. 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
8.01(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? See section 8.01(5)(a).

Yes No
Page ____

16. Have you included the required statement regarding whether the taxpayer, a related taxpayer, a
predecessor, or any representatives previously submitted a request (including an application for change in
accounting method) involving the same or similar issue but withdrew the request before the letter ruling
or determination letter was issued? See section 8.01(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 accounting method)
involving the same or similar issue that is currently pending with the Service? See section 8.01(5)(c).

Yes No
Page ____

18. Have you included the required statement regarding whether, at the same time as this request, the
taxpayer or a related taxpayer is presently submitting another request (including an application for
change in accounting method) involving the same or similar issue to the Service? See section 8.01(5)(d).

Yes No
Pages ___

19. Have you included the required statement of relevant authorities in support of your views? See
section 8.01(6).

Yes No
Page ____

20. 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 8.01(6).

January 3, 2000

70

2000–1 I.R.B.

Yes No
Pages ___

21. Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations, notices, revenue rulings, or revenue procedures that you determined to be contrary to the position
advanced? See section 8.01(7), which states that taxpayers are encouraged to inform the Service of such
authorities.

Yes No N/A
Page ____

22. If you determined that there are no contrary authorities, have you included a statement to this effect
in your request? See section 8.01(7).

Yes No N/A
Page ____

23. Have you included in your request a statement identifying any pending legislation that may affect the
proposed transaction? See section 8.01(8).

Yes No

24. Is the request accompanied by the deletions statement required by § 6110? See section 8.01(9).

Yes No
Page ____

25. Have you (or your authorized representative) signed and dated the request? See section 8.01(10).

Yes No N/A

26. If the request is signed by your representative or if your representative will appear before the Service
in connection with the request, is the request accompanied by a properly prepared and signed power of
attorney with the signatory’s name typed or printed? See section 8.01(12).

Yes No
Page ____

27. Have you included, signed, and dated the penalties of perjury statement in the form required by
section 8.01(13)?

Yes No N/A

28. Are you submitting your request in duplicate if necessary? See section 8.01(14).

Yes No N/A
Pages ___

29. If you are requesting separate letter rulings on different issues involving one factual situation, have
you included a statement to that effect in each request? See section 8.02(1).

Yes No N/A

30. If you want copies of the letter ruling sent to more than one representative, does the power of attorney contain a statement to that effect? See section 8.02(2)(a).

Yes No N/A

31. If you want the original of the letter ruling to be sent to a representative, does the power of attorney
contain a statement to that effect? See section 8.02(2)(b).

Yes No N/A

32. 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 8.02(2)(c).

Yes No N/A

33. If you are making a two-part letter ruling request, have you included a summary statement of the
facts you believe to be controlling? See section 8.02(3).

Yes No N/A
Page ____

34. If you want your letter ruling request to be processed ahead of the regular order or by a specific date,
have you requested expeditious handling in the manner required by section 8.02(4) and stated a compelling need for such action in the request?

Yes No N/A
Page ____

35. If you are requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax) transmission, have you included a statement to that effect?
See section 8.02(5).

Yes No N/A
Page ____

36. If you want to have a conference on the issues involved in the request, have you included a request
for conference in the letter ruling request? See section 8.02(7).

Yes No

37. Have you included the correct user fee with the request and made your check or money order payable
to the Internal Revenue Service? See section 15 and Appendix A to determine the correct amount.

Yes No N/A
Page ____

38. If your request involves a personal tax issue and you qualify for the reduced user fee when gross
income is less than $150,000, have you included the required certification? See paragraphs (A)(4)(a) and
(B)(1) of Appendix A.

2000–1 I.R.B.

71

January 3, 2000

Yes No N/A
Page ____

39. If your request involves a business-related tax issue and you qualify for the reduced user fee when
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 ____

40. If you qualify for the user fee for substantially identical letter rulings, have you included the required
information? See section 15.07(2) and paragraph (A)(5)(a) of Appendix A.

Yes No N/A
Page ____

41. If you qualify for the user fee for a § 301.9100 request to extend the time for filing an identical
accounting method change on a single Form 3115, have you included the required information? See section 15.07(3) and paragraph (A)(5)(c) of Appendix A.

Yes No N/A

42. If your request is covered by any of the guideline revenue procedures or notices, safe harbor revenue
procedures, or other special requirements listed in section 9, have you complied with all of the requirements of the applicable revenue procedure or notice?

Rev. Proc.
______
______
______

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

Yes No N/A
Page ____

43. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all
of the requirements in section 12.11?

Yes No

44. Have you addressed your request to the attention of Associate Chief Counsel (Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International), as appropriate? The mailing address is:
Internal Revenue Service
Attn: CC:DOM:CORP:TSS
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
However, if a private delivery service is used, the address is:
Internal Revenue Service
Attn: CC:DOM:CORP:TSS, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
The package should be marked: RULING REQUEST SUBMISSION. Improperly addressed requests
may be delayed (sometimes for over a week) in reaching CC:DOM:CORP:TSS for initial processing.

_____________________________
Signature

____________________________________________
Title or Authority

______________
Date

_____________________________
Typed or printed name of
person signing checklist

January 3, 2000

72

2000–1 I.R.B.

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

Rev. Proc. 2000–2
TABLE OF CONTENTS
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?

p. 77

SECTION 2. WHAT IS
TECHNICAL ADVICE?

p. 78

SECTION 3. ON WHAT ISSUES
MAY TECHNICAL ADVICE BE
REQUESTED UNDER THIS
PROCEDURE?

p. 78
.01 Issues under the jurisdiction of the Associate Chief Counsel (Domestic), the
Associate Chief Counsel (Employee Benefits and Exempt Organizations),
the Associate Chief Counsel (Enforcement Litigation), or the Associate
Chief Counsel (International)
.02 Issues involving shipowners’ protection and indemnity associations and certain homeowners associations

SECTION 4. ON WHAT ISSUES
p. 79
MUST TECHNICAL ADVICE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?

.01 Alcohol, tobacco, and firearms taxes
.02 Employee plans and exempt organizations
.03 Farmers’ cooperatives

SECTION 5. MAY TECHNICAL
ADVICE BE REQUESTED
UNDER § 301.9100 OR ON
ENVIRONMENTAL CLEANUP
COST ISSUES DURING THE
COURSE OF AN EXAMINATION?

p. 79
.01 A § 301.9100 request made during the course of an examination
(1) A § 301.9100 request is a letter ruling request
(2) Statute of limitations
(3) Address to send a § 301.9100 request
(4) If the return is being examined or considered by an appeals office or a
federal court, the taxpayer must notify the national office and the national office will notify the district director, Chief, appeals office, or
government counsel
.02 A request on environmental cleanup cost issues made during the course of
an examination
(1) Taxpayer-initiated request
(2) Service-initiated request

SECTION 6. WHO IS
RESPONSIBLE FOR
REQUESTING TECHNICAL
ADVICE?

p. 81
.01 District director or chief, appeals office, determines whether to request
technical advice
.02 Taxpayer may ask that issue be referred for technical advice

2000–1 I.R.B.

73

January 3, 2000

SECTION 7. WHEN SHOULD
TECHNICAL ADVICE BE
REQUESTED?

p. 81
.01 Uniformity of position lacking
.02 When technical advice can be requested
.03 At the earliest possible stage

SECTION 8. HOW ARE
PRE-SUBMISSION
CONFERENCES SCHEDULED?

p. 82
.01 Pre-submission conference generally is permitted when district or appeals
office likely will request technical advice and all parties agree to request the
conference
.02 Purpose of a pre-submission conference
.03 Request for a pre-submission conference must be submitted in writing by
the district or appeals office
.04 Branch will contact the district or appeals office to arrange the pre-submission conference
.05 Pre-submission conference generally held in person
.06 Certain information required to be submitted to the national office prior to
the pre-submission conference
.07 Pre-submission conference may not be taped
.08 Discussion of substantive issues is not binding on the Service

SECTION 9. WHAT MUST BE
INCLUDED IN THE REQUEST
FOR TECHNICAL ADVICE?

p. 83
.01 Statement of issues, facts, law, and arguments, and submission of relevant
foreign laws and documents in a language other than English
.02 Statement identifying information to be deleted from public inspection
.03 Transmittal Form 4463, Request for Technical Advice
.04 Number of copies of request to be submitted
.05 Power of attorney

SECTION 10. HOW ARE
REQUESTS HANDLED?

p. 86
.01 Taxpayer notified
.02 Conference offered
.03 If the taxpayer disagrees with the Service’s statement of facts
.04 If the Service disagrees with the taxpayer’s statement of facts
.05 If the interpretation of a foreign law or foreign document is a material fact
.06 If the taxpayer has not submitted the required deletions statement

January 3, 2000

74

2000–1 I.R.B.

.07 Section 6104 of the Internal Revenue Code (Applications for exemption and
letter rulings issued to certain exempt organizations open to public inspection)
.08 Criminal or civil fraud cases
SECTION 11. HOW DOES A
TAXPAYER APPEAL A
DISTRICT DIRECTOR’S OR
CHIEF, APPEALS OFFICE’S,
DECISION NOT TO SEEK
TECHNICAL ADVICE?

p. 88
.01 Taxpayer notified of decision not to seek technical advice
.02 Taxpayer may appeal decision not to seek technical advice
.03 Chief, examination division, or chief, appeals office, determines whether
technical advice will be sought
.04 Chief’s decision may be reviewed but not appealed

SECTION 12. HOW ARE
REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN?

p. 89
.01 Taxpayer notified
.02 National office may provide views

SECTION 13. HOW ARE
CONFERENCES SCHEDULED?

p. 89
.01 If requested, offered to the taxpayer when adverse technical advice proposed
.02 Normally held within 21 days of contact with the taxpayer
.03 21-day period will be extended if justified and approved
.04 Denial of extension cannot be appealed
.05 Entitled to one conference of right
.06 Conference may not be taped
.07 If requested and approved, conference will be delayed to address a request
for relief under § 7805(b)
.08 Service makes tentative recommendations
.09 Additional conferences may be offered
.10 Additional information submitted after the conference
.11 Under limited circumstances, may schedule a conference to be held by telephone

SECTION 14. HOW IS STATUS
OF REQUEST OBTAINED?

p. 92
.01 Taxpayer or the taxpayer’s representative may request status from the district or appeals office
.02 National office will give status updates to the district director or chief, appeals office

2000–1 I.R.B.

75

January 3, 2000

SECTION 15. HOW DOES THE
NATIONAL OFFICE PREPARE
THE TECHNICAL ADVICE
MEMORANDUM?

p. 92
.01 Delegates authority to branch chiefs
.02 Determines whether request has been properly made
.03 Contacts the district or appeals office to discuss issues
.04 Informs the district or appeals office if any matters in the request have been
referred to another branch or office
.05 Informs the district or appeals office if additional information is needed
.06 Informs the district or appeals office of the tentative conclusion
.07 If a tentative conclusion has not been reached, gives date estimated for tentative conclusion
.08 Advises the district or appeals office if tentative conclusion is changed
.09 Generally does not discuss the tentative conclusion with the taxpayer
.10 Advises the district or appeals office of final conclusions
.11 If needed, requests additional information
.12 Requests taxpayer to send additional information to the national office and
a copy to the district director or chief, appeals office
.13 Informs the taxpayer when requested deletions will not be made
.14 Prepares reply in two parts
.15 Routes replies to appropriate office

SECTION 16. HOW DOES A
DISTRICT OR APPEALS
OFFICE USE THE
TECHNICAL ADVICE?

p. 96
.01 Generally applies advice in processing the taxpayer’s case
.02 Discussion with the taxpayer
.03 Gives copy to the taxpayer
.04 Taxpayer may protest deletions not made
.05 When no copy is given to the taxpayer

SECTION 17. WHAT IS THE
EFFECT OF TECHNICAL
ADVICE?

p. 97
.01 Applies only to the taxpayer for whom technical advice was requested
.02 Usually applies retroactively
.03 Generally applied retroactively to modify or revoke prior technical advice
.04 Applies to continuing action or series of actions until specifically withdrawn, modified, or revoked

January 3, 2000

76

2000–1 I.R.B.

.05 Applies to continuing action or series of actions until material facts change
.06 Does not apply retroactively under certain conditions
SECTION 18. HOW MAY
RETROACTIVE EFFECT
BE LIMITED?

p. 98
.01 Taxpayer may request that retroactivity be limited
.02 Form of request to limit retroactivity — continuing transaction before examination of return
.03 Form of request to limit retroactivity — in all other cases
.04 Taxpayer’s right to a conference

SECTION 19. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 99–2?

p. 99

SECTION 20. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?

p. 100

SECTION 21. WHAT IS THE
EFFECTIVE DATE OF THIS
REVENUE PROCEDURE?

p. 100

DRAFTING INFORMATION

p. 100

INDEX

p. 101

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

This revenue procedure explains when and how the Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), and the Associate Chief Counsel (International) give technical advice to a district director or a chief, appeals office. It also explains
the rights a taxpayer has when a district director or a chief, appeals office, requests technical advice regarding a tax matter.

Description of terms used in
this revenue procedure

For purposes of this revenue procedure—
(1) any reference to district director or district office includes their respective offices or,
when appropriate, the Assistant Commissioner (International) or the director of an Internal
Revenue Service Center;
(2) any reference to chief, appeals office, includes, when appropriate, the assistant regional director of appeals (large case);
(3) any reference to chief, examination division, includes, when appropriate, the Director, Employee Plans Examinations or the Director, Exempt Organizations Examinations;
(4) any reference to appeals officer includes, when appropriate, the team chief;
(5) the term “taxpayer” includes all persons subject to any provision of the Internal Revenue Code (including issuers of § 103 obligations) and, when appropriate, their representatives; and

2000–1 I.R.B.

77

Sec. 1
January 3, 2000

(6) the term “national office” refers to the Office of Associate Chief Counsel (Domestic),
the Office of Associate Chief Counsel (Employee Benefits and Exempt Organizations),
the Office of Associate Chief Counsel (Enforcement Litigation), or the Office of Associate
Chief Counsel (International), as appropriate.
The offices and titles in this revenue procedure are based on the current organization of
the Internal Revenue Service. We anticipate that these offices and titles will change as the
reorganization of the Service is implemented.
Updated annually

The revenue procedure is updated annually as the second revenue procedure of the year,
but may be modified or amplified during the year.

SECTION 2. WHAT IS
TECHNICAL ADVICE?

“Technical advice” means advice or guidance in the form of a memorandum furnished by
the national office upon the request of a district director or a chief, appeals office, submitted in accordance with the provisions of this revenue procedure, in response to any technical or procedural question that develops during any proceeding on the interpretation and
proper application of tax law, tax treaties, regulations, revenue rulings, notices, or other
precedents published by the national office to a specific set of facts. Such proceedings include: (1) the examination of a taxpayer’s return; (2) the consideration of a taxpayer’s
claim for refund or credit; (3) any matter under examination or in appeals pertaining to
tax-exempt bonds or mortgage credit certificates; and (4) any other matter involving a specific taxpayer under the jurisdiction of the chief, examination division, or the chief, appeals office. They also include processing and considering nondocketed cases in an appeals office but do not include cases in which the issue in the case is in a docketed case for
any taxable year. If, however, a case is docketed for an estate tax issue of a taxpayer while
a request for technical advice on the same issue of the same taxpayer is pending, the national office may issue the technical advice memorandum if the appropriate appeals officer and government counsel agree, by memorandum, to the issuance of the technical advice memorandum.
Technical advice helps Internal Revenue Service personnel close cases and also helps establish and maintain consistent holdings throughout the Service. A district director or a
chief, appeals office, may raise an issue in any tax period, even though technical advice
may have been asked and furnished for the same or similar issue for another tax period.
Technical advice does not include legal advice furnished to the district or appeals office
in writing or orally, other than advice furnished pursuant to this revenue procedure. In accordance with section 11.01 of this revenue procedure, a taxpayer’s request for referral of
an issue to the national office for technical advice will not be denied merely because the
national office has provided legal advice, other than advice furnished pursuant to this revenue procedure, to the district or appeals office on the matter.

SECTION 3. ON WHAT ISSUES
MAY TECHNICAL ADVICE BE
REQUESTED UNDER THIS
PROCEDURE?
Issues under the jurisdiction
of the Associate Chief Counsel
(Domestic), the Associate Chief
Counsel (Employee Benefits and
Exempt Organizations), the
Associate Chief Counsel
(Enforcement Litigation), or the
Associate Chief Counsel
(International)

Sec. 1
January 3, 2000

.01 The instructions of this revenue procedure apply to requests for technical advice on
any issue under the jurisdiction of the Associate Chief Counsel (Domestic), the Associate
Chief Counsel (Employee Benefits and Exempt Organizations), or the Associate Chief
Counsel (International), and on certain issues under the jurisdiction of the Associate Chief
Counsel (Enforcement Litigation). See section 3 of Rev. Proc. 2000–1, this Bulletin, for
a description of the principal subject matters of jurisdiction.

78

2000–1 I.R.B.

Issues involving shipowners’
protection and indemnity
associations and certain
homeowners associations

.02 The jurisdiction of the Associate Chief Counsel (Domestic) extends to issuing
technical advice under § 526 (shipowners’ protection and indemnity associations) and
§ 528 (certain homeowners associations).

SECTION 4. ON WHAT
ISSUES MUST TECHNICAL
ADVICE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?
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 under the jurisdiction
of the Bureau of Alcohol, Tobacco and Firearms.

Employee plans and
exempt organizations

.02 The procedures for obtaining technical advice specifically on issues under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division are
found in Rev. Proc. 2000–5, this Bulletin. However, the procedures under Rev. Proc.
2000– 2 (this revenue procedure) must be followed for obtaining technical advice on issues pertaining to tax-exempt bonds and mortgage credit certificates.

Farmers’ cooperatives

.03 Even though the Associate Chief Counsel (Domestic) has jurisdiction for issuing
technical advice under § 521, the procedures under Rev. Proc. 2000–5 and Rev. Proc.
90–27, 1990–1 C.B. 514, as well as § 601.201(n) of the Statement of Procedural Rules (26
C.F.R. § 601.201(n) (1999)), must be followed.

SECTION 5. MAY TECHNICAL
ADVICE BE REQUESTED
UNDER § 301.9100 OR ON
ENVIRONMENTAL CLEANUP
COST ISSUES DURING THE
COURSE OF AN EXAMINATION?
A § 301.9100 request made
during the course of an
examination

.01 A § 301.9100 request made during the course of an examination
(1) A § 301.9100 request is a letter ruling request. A request for an extension of time for
making an election or other application for relief under § 301.9100–3 of the Procedure and
Administration Regulations is 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 request should be
submitted pursuant to Rev. Proc. 2000–1 (including the payment of the applicable user fee
listed in Appendix A of Rev. Proc. 2000–1). See section 5.02 of Rev. Proc. 2000–1.
(2) Statute of limitations. The running of any applicable period of limitations is not
suspended for the period during which a § 301.9100 request has been filed. See
§ 301.9100–3(d)(2). If the period of limitations on 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 letter ruling, the Service ordinarily will not issue a § 301.9100 ruling. See
§ 301.9100–3(c)(1)(ii). Therefore, the taxpayer must secure a consent under § 6501(c)(4)
to extend the period of limitations on assessment. Note that the filing of a claim for refund
under § 6511 does not extend the period of limitations on assessment. If § 301.9100 relief
is granted, the Service may require the taxpayer to consent to an extension of the period of
limitations on assessment. See § 301.9100–3(d)(2).
(3) Address to send a § 301.9100 request. Pursuant to section 8.03(1) of Rev. Proc.
2000– 1, a § 301.9100 request, together with the appropriate user fee, must be submitted
by the taxpayer to the Associate Chief Counsel (Domestic), the Associate Chief Counsel

2000–1 I.R.B.

79

Sec. 5.01(3)
January 3, 2000

(Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International), as appropriate. The
package should be marked: RULING REQUEST SUBMISSION. See Appendix A of
Rev. Proc. 2000–1 for the appropriate user fee.
(a) A § 301.9100 request should be sent to the following address:
Internal Revenue Service
Attn: CC:DOM:CORP:TSS
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
However, if a private delivery service is used, the address is:
Internal Revenue Service
Attn: CC:DOM:CORP:TSS, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
(b) A § 301.9100 request may also be hand delivered:
(i) To the drop box at the 12th Street entrance of 1111 Constitution Avenue, N.W., Washington, D.C.. No receipt will be given at the drop box. The package should be addressed
to:
Internal Revenue Service
Attn: CC:DOM:CORP:TSS, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224; or
(ii) Between the hours of 8:15 a.m. and 5:00 p.m. to the courier’s desk at the main entrance of 1111 Constitution Avenue, N.W., Washington, D.C.. A receipt will be given at
the courier’s desk. The package should be addressed to:
Courier’s Desk
Internal Revenue Service
Attn: CC:DOM:CORP:TSS, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
(4) If the return is being examined or considered by an appeals office or a federal
court, the taxpayer must notify the national office and the national office will notify
the district director, chief, appeals officer, or government counsel. 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 a district office or considered by an appeals office or a federal court, the taxpayer must
notify the national office. See § 301.9100–3(e)(4)(i) and section 5.02(3) of Rev. Proc.
2000–1. The national office will notify the appropriate district director, chief, appeals officer, or government counsel that a § 301.9100 request has been submitted to the national
office. The examining officer, appeals officer, or government counsel 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 appropriate district director, appeals officer, or government counsel.
A request on environmental
cleanup cost issues made during
the course of an examination

Sec. 5.01(3)
January 3, 2000

.02 A request on environmental cleanup cost issues made during the course of an
examination

80

2000–1 I.R.B.

(1) Taxpayer-initiated request. If a taxpayer initiates a request for written guidance on
the tax treatment under §§ 162, 165, 198, or 263 of environmental cleanup costs incurred
in projects that span several taxable years, including prior and future taxable years, and if
any project year is under examination or before an appeals office when the taxpayer initiates the request, the request should be submitted pursuant to Rev. Proc. 98–17, 1998–1
C.B. 405. However, if this request involves no future taxable years, Rev. Proc. 2000–2
(this revenue procedure) applies. A request made pursuant to Rev. Proc. 98–17 is a letter
ruling request and requires the payment of the applicable user fee listed in Appendix A of
Rev. Proc. 2000–1. The procedures in Rev. Proc. 98–17 are available for a taxpayer-initiated request submitted during the two-year period beginning on February 2, 1998.
(2) Service-initiated request. A district or appeals office may initiate a request for technical advice under Rev. Proc. 2000–2 (this revenue procedure) on the tax treatment of environmental cleanup costs.
SECTION 6. WHO IS
RESPONSIBLE FOR
REQUESTING TECHNICAL
ADVICE?
District director or chief, appeals
office, determines whether to
request technical advice

.01 The district director or chief, appeals office, determines whether to request technical
advice on any issue being considered. Each request must be submitted through channels
and signed by a person who is authorized to sign for the district director or chief, appeals
office.

Taxpayer may ask that issue
be referred for technical advice

.02 While a case is under the jurisdiction of a district director or chief, appeals office,
a taxpayer may request in writing or orally to the examining officer or appeals officer that
an issue be referred to the national office for technical advice.

SECTION 7. WHEN SHOULD
TECHNICAL ADVICE BE
REQUESTED?
Uniformity of position lacking

.01 Technical advice 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 the national office.

When technical advice
can be requested

.02 The provisions of this revenue procedure apply only to a case under the jurisdiction
of a district director or chief, appeals office. Technical advice 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.
A district director may not request technical advice 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 a member of an affiliated group of which the taxpayer is also a
member within the meaning of § 1504). A case remains under the jurisdiction of the district director 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, a district director may not request technical advice on the applicability of any of the taxes involved.
A district director or chief, appeals office, also 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

2000–1 I.R.B.

81

Sec. 7.02
January 3, 2000

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. If, however, a case is docketed for an estate tax issue of a taxpayer while a
request for technical advice on the same issue of the same taxpayer is pending, the national office may issue the technical advice memorandum if the appropriate appeals officer and government counsel agree, by memorandum, to the issuance of the technical advice memorandum.
At the earliest possible stage

.03 Once an issue is identified, all requests for technical advice should be made at the
earliest possible stage in any proceeding. The fact that the issue is raised late in the examination or appeals process should not influence, however, the district or appeals office’s
decision to request technical advice.

SECTION 8. HOW ARE
PRE-SUBMISSION
CONFERENCES
SCHEDULED?
Pre-submission conference
generally is permitted when
district or appeals office likely
will request technical advice and
all parties agree to request the
conference

.01 In an effort to promote expeditious processing of requests for technical advice, the
national office generally will meet with the district or appeals office and the taxpayer prior
to the time a request for technical advice is submitted to the national office. In cases
involving very complex issues, the district or appeals office and the taxpayer are encouraged to request a pre-submission conference. A request for a pre-submission conference should be made, however, only after the district or appeals office determines that it
likely will request technical advice and only after all parties agree that a pre-submission
conference should be requested.

Purpose of a pre-submission
conference

.02 A pre-submission conference is intended to facilitate agreement between the parties
as to the appropriate scope of the request for technical advice, the factual information to be
included in the request for technical advice, any collateral issues that either should or
should not be included in the request for technical advice, and any other substantive or
procedural considerations that will allow the national office to provide the parties with
technical advice as expeditiously as possible.
A pre-submission conference is not intended to create an alternative procedure for determining the merits of the substantive positions advocated by the district or appeals office or
by the taxpayer. The conference is intended only to facilitate the overall technical advice
process.

Request for a pre-submission
conference must be submitted
in writing by the district or
appeals office

.03 A request for a pre-submission conference must be submitted in writing by the
district or appeals office. The request should identify the associate or assistant chief counsel
office expected to have jurisdiction over the request for technical advice. The request
should include a brief explanation of the primary issue so that an assignment to the appropriate branch can be made. Coordination with district counsel is strongly encouraged. If
the request involves a designated issue or industry under the Industry Specialization Program, coordination with the issue or industry specialist is also strongly encouraged.
An original and one copy of the request should be submitted to the appropriate address
listed in section 9.03 of this revenue procedure.

Branch will contact the district
or appeals office to arrange the
pre-submission conference

Sec. 7.02
January 3, 2000

.04 Within 5 working days after it receives the request, the branch assigned responsibility for conducting the pre-submission conference will contact the district or appeals
office to arrange a mutually convenient time for the parties to meet in the national office.
The conference generally should be held within 30 calendar days after the district or appeals office is contacted. The district or appeals office will be responsible for coordinating
with the taxpayer as well as with any other Service personnel whose attendance the district
or appeals office believes would be appropriate.

82

2000–1 I.R.B.

Pre-submission conference
generally held in person

.05 Pre-submission conferences generally will be held in person in the national office.
However, if the district or appeals office personnel or the taxpayer is unable to attend the
conference, the conference may be conducted by telephone.

Certain information required to
be submitted to the national
office prior to the pre-submission
conference

.06 At least 10 working days before the scheduled pre-submission conference, the
district or appeals office and the taxpayer should submit to the national office a statement
of the pertinent facts (including any facts in dispute), a statement of the issues that the
parties would like to discuss, and any legal analysis, authorities, or background documents
that the parties believe would facilitate the national office’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 technical advice, but it should allow the national office to become reasonably informed regarding the subject matter of the conference prior to the meeting. The district or
appeals office or the taxpayer should ensure that the national office receives a copy of any
required power of attorney, preferably on Form 2848, Power of Attorney and Declaration
of Representative.

Pre-submission conference
may not be taped

.07 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

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

SECTION 9. WHAT MUST BE
INCLUDED IN THE REQUEST
FOR TECHNICAL ADVICE?
Statement of issues, facts,
law, and arguments, and
submission of relevant foreign
laws and documents in a
language other than English

.01 Whether initiated by the taxpayer or by a district or appeals office, a request for
technical advice must include the facts and the issues for which technical advice is
requested, a written statement clearly stating the applicable law and the arguments in
support of both the Service’s and the taxpayer’s positions on the issue or issues, and, if
applicable, the information required in sections 9.01(4) and 9.01(5) of this revenue procedure with respect to the submission of relevant foreign laws and documents in a language
other than English. In addition, as part of the original technical advice request, the taxpayer is encouraged to request that if the Service requests additional information from the
taxpayer, the Service does so by facsimile (fax) transmission. The procedures for requesting such document to be faxed are the same as those in section 15.11(1) of this revenue
procedure.
(1) If taxpayer initiates request for technical advice, taxpayer must submit statement, copy of relevant foreign laws, and certified English translations of documents
in a language other than English. If the taxpayer initiates the request for technical advice, the taxpayer must submit to the examining officer or appeals officer, at the time the
taxpayer initiates the request:
(a) a written statement—
(i) stating the facts and the issues;
(ii) explaining the taxpayer’s position;
(iii) 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
(iv) stating the reasons for requesting technical advice; and

2000–1 I.R.B.

83

Sec. 9.01(1)
January 3, 2000

(b) the information required in sections 9.01(4) and 9.01(5) of this revenue procedure with respect to the submission of a copy of relevant foreign laws and certified English translations of documents in a language other than English, if applicable.
If the examining officer or appeals officer determines that technical advice will be requested, the taxpayer’s statement, including the information required in sections 9.01(4)
and 9.01(5) of this revenue procedure, will be forwarded to the national office with the request for technical advice.
(2) If the Service initiates request for technical advice, taxpayer is encouraged to
submit statement, copy of relevant foreign laws, and certified English translations of
documents in a language other than English. If the request for technical advice is initiated by a district or appeals office, the taxpayer is encouraged to submit the written statement and information described in section 9.01(1) of this revenue procedure. If the taxpayer chooses to submit this statement and information, the taxpayer and the district or
appeals office should determine a mutually agreed date for the submission of the taxpayer’s statement and information so that it will be forwarded to the national office with
the request for technical advice.
If the request for technical advice is forwarded to the national office without the taxpayer’s statement and information, and if the taxpayer chooses to submit the statement and
information, the taxpayer must submit the statement and information to the national office
within 21 calendar days after the request for technical advice has been forwarded. The taxpayer must also send a copy of the statement and information to the district director or the
chief, appeals office. The procedures for requesting an extension of the 21-day period and
receiving approval of such extension are the same as those in section 15.11(3) of this revenue procedure. If the national office does not receive the taxpayer’s statement and information within the 21-day period, plus extensions granted by the assistant chief counsel,
the national office, at its discretion, may base its advice on the facts provided by the district or appeals office.
(3) Statement of authorities contrary to taxpayer’s position. Whether the request for
technical advice is initiated by the taxpayer or by a district or appeals office, the taxpayer
is also encouraged to comment on any legislation (or pending legislation), tax treaties,
regulations, revenue rulings, revenue procedures, or court decisions contrary to the taxpayer’s position. If the taxpayer determines that there are no contrary authorities, a statement to this effect would be helpful. If the taxpayer does not furnish either contrary authorities or a statement that none exists, the Service, in complex cases or those presenting
difficult or novel issues, may request submission of contrary authorities or a statement that
none exists.
(4) Relevant parts of all foreign laws. Whether initiated by the taxpayer or by a district
or appeals office, a request for technical advice, and other statements forwarded to the national office with the request, must include 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, generally accepted publication. If English is not the official language of the country involved, the submission must also include a copy of an English language version of the relevant parts of all foreign laws. This translation must be: (a) from
an official publication of the foreign government or another widely available, generally
accepted publication; or (b) a certified English translation submitted in accordance with
section 9.01(5) of this revenue procedure.
The taxpayer or the district or appeals office must identify the title and date of publication, including updates, of any widely available, generally accepted publication that it (or
its qualified translator) uses as a source for the relevant parts of the foreign law.

Sec. 9.01(1)
January 3, 2000

84

2000–1 I.R.B.

The taxpayer and the district or appeals office are encouraged to inform the national office about and discuss the implications of any authority believed to interpret the foreign
law, such as pending legislation, treaties, court decisions, notices, or administrative decisions. But see section 10.05 of this revenue procedure, stating that the national office may
refuse to provide technical advice if the interpretation of a foreign law or foreign document is a material fact.
(5) Standards for acceptability of submissions of documents in a language other
than English and certified English translations of laws in a language other than English. Whether initiated by the taxpayer or by a district or appeals office, a request for technical advice, and other statements forwarded to the national office with the request, must
include an accurate and complete certified English translation of the relevant parts of all
contracts, wills, deeds, agreements, instruments, trust documents, proposed disclaimers, or
other documents in a language other than English. If the taxpayer or the district or appeals
office 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, generally accepted publication. In either case, the translation must be that of a
qualified translator and must be attested to by the translator. The attestation must contain:
(a) a statement that the translation submitted is a true and accurate translation of the foreign language document or law; (b) a statement as to the attestant’s qualifications as a
translator and as to that attestant’s qualifications and knowledge regarding income tax
matters; and (c) the attestant’s name and address.
Statement identifying information
to be deleted from public
inspection

.02 The text of a technical advice memorandum is open to public inspection under
§ 6110(a). 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 10.06 of this revenue procedure.
A taxpayer who wants only names, addresses, and identifying numbers deleted should
state this in the deletions statement. If the taxpayer wants more information deleted, the
deletions statement must be accompanied by a copy of the technical advice 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 technical advice memorandum is issued, additional deletions statements may be submitted.
The deletions statement must not appear in the request for technical advice but, instead,
must be made in a separate document.
The deletions statement must be signed and dated by the taxpayer or the taxpayer’s authorized representative. A stamped signature is not permitted.
The taxpayer should follow these same procedures to propose deletions from any additional information submitted after the initial request for technical advice. 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.

Transmittal Form 4463,
Request for Technical Advice

2000–1 I.R.B.

.03 The district or appeals office should use Form 4463, Request for Technical Advice,
for transmitting a request for technical advice to the national office using the addresses
listed below.

85

Sec. 9.03
January 3, 2000

Address to send requests from
district offices

Internal Revenue Service
Attn: CC:DOM:CORP:TSS
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044

Address to send requests from
appeals offices

Internal Revenue Service
Attn: C:AP:CIIT
1099 14th Street, N.W.
Franklin Court Building
Washington, D.C. 20005

Number of copies of request
to be submitted

.04 The district or appeals office must submit: (1) two copies of the request for technical
advice to the national office; and (2) one copy of the request for technical advice to the
issue or industry specialist if the request involves a designated issue or industry under the
Industry Specialization Program.

Power of attorney

.05 Any authorized representative, as described in section 8.01(11) of Rev. Proc. 2000–1,
whether or not enrolled to practice, must comply with Treasury Department Circular No.
230 (31 C.F.R. part 10 (1999)) and with the conference and practice requirements of the
Statement of Procedural Rules (26 C.F.R. § 601.501–601.509 (1999)). It is preferred that
Form 2848, Power of Attorney and Declaration of Representative, be used with regard to
requests for technical advice under this revenue procedure. An original, a copy, or a fax
transmission of the power of attorney is acceptable so long as its authenticity is not reasonably disputed.

SECTION 10. HOW ARE
REQUESTS HANDLED?
Taxpayer notified

.01 Regardless of whether the taxpayer or the Service initiates the request for technical
advice, the district or appeals office: (1) will notify the taxpayer that technical advice is
being requested; and (2) at or before the time the request is submitted to the national office, will give to the taxpayer a copy of the arguments that were provided to the national
office in support of the Service’s position.
If the examining officer or appeals officer initiates the request for technical advice, he or
she will give to the taxpayer a copy of the statement of the pertinent facts and the issues
proposed for submission to the national office.
This section 10.01 does not apply to a technical advice memorandum described in section
10.08 of this revenue procedure.

Conference offered

.02 When notifying the taxpayer that technical advice is being requested, the examining
officer or appeals officer will also tell the taxpayer about the right to a conference in the
national office 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

.03 If the examining officer or appeals officer initiates the request for technical advice,
the taxpayer has 10 calendar days after receiving the statement of facts and specific issues
to submit to that officer 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 chief, examination division, or the chief, appeals office.
After receiving the taxpayer’s statement of the areas of disagreement, every effort should
be made to reach an agreement on the facts and the specific points at issue before the matter is referred to the national office. If an agreement cannot be reached, the district or ap-

Sec. 9.03
January 3, 2000

86

2000–1 I.R.B.

peals office will notify the taxpayer in writing. Within 10 calendar days after receiving the
written notice, the taxpayer may submit a statement of the taxpayer’s understanding of the
facts and the specific points at issue. A taxpayer who needs more than 10 calendar days to
prepare the statement of understanding must justify in writing the request for an extension
of time. The extension is subject to the approval of the chief, examination division, or the
chief, appeals office. Both the statements of the taxpayer and the district or appeals office
will be forwarded to the national office with the request for technical advice.
When the district director or the chief, appeals office, and the taxpayer cannot agree on
the material facts and the request for technical advice does not involve the issue of
whether a letter ruling should be modified or revoked, the national office, at its discretion,
may refuse to provide technical advice. If the national office chooses to issue technical
advice, the national office will base its advice on the facts provided by the district or appeals office.
If a request for technical advice involves the issue of whether a letter ruling should be
modified or revoked, the national office will issue technical advice.
If the Service disagrees with
the taxpayer’s statement of facts

.04 If the taxpayer initiates the request for technical advice and the taxpayer’s statement
of the facts and issues is not wholly acceptable to the district or appeals office, the Service
will notify the taxpayer in writing of the areas of disagreement. The taxpayer has 10 calendar days after receiving the written notice to reply to it. A taxpayer who needs more
than 10 calendar days must justify in writing the request for an extension of time. The extension is subject to the approval of the chief, examination division, or the chief, appeals
office.
If an agreement cannot be reached, both the statements of the taxpayer and the district or
appeals office will be forwarded to the national office with the request for technical advice. When the disagreement involves material facts essential to the preliminary assessment of the case, the district director or the chief, appeals office, may refuse to refer a taxpayer initiated request for technical advice to the national office.
If the district director or the chief, appeals office, submits a case involving a disagreement of the material facts, the national office, at its discretion, may refuse to provide technical advice. If the national office chooses to issue technical advice, the national office
will base its advice on the facts provided by the district or appeals office.

If the interpretation of a
foreign law or foreign document
is a material fact

.05 If the interpretation of a foreign law or foreign document is a material fact, the
national office, at its discretion, may refuse to provide technical advice. This section
10.05 applies whether or not the district or appeals office and the taxpayer dispute the interpretation of a foreign law or foreign document. The interpretation of a foreign law or
foreign document means making a judgment about the import or effect of the foreign law
or document that goes beyond its plain meaning.

If the taxpayer has not
submitted the required
deletions statement

.06 When the district or appeals office initiates the request for technical advice, the
taxpayer has 10 calendar days after receiving the statement of facts and issues to be
submitted to the national office to provide the deletions statement required under §
6110(c). See section 9.02 of this revenue procedure. If the taxpayer does not submit the
deletions statement, the district director or the chief, appeals office, will tell the taxpayer
that the statement is required.
When the taxpayer initiates the request for technical advice and does not submit a deletions statement with the request, the district director or the chief, appeals office, will ask
the taxpayer to submit the statement. If the district director or the chief, appeals office,
does not receive the deletions statement within 10 calendar days after asking the taxpayer
for it, the district director or the chief, appeals office, may decline to submit the request for
technical advice.

2000–1 I.R.B.

87

Sec. 10.06
January 3, 2000

However, if the district director or the chief, appeals office, decides to request technical
advice, whether initiated by the district or appeals office or by the taxpayer, in a case in
which the taxpayer has not submitted the deletions statement, the national office will make
those deletions that the Commissioner of Internal Revenue determines are required by
§ 6110(c).
Section 6104 of the Internal
Revenue Code (Applications
for exemption and letter rulings
issued to certain exempt
organizations open to public
inspection)

.07 The requirements for submitting statements and other materials or proposed
deletions in technical advice memorandums before public inspection is allowed do not
apply to requests for any documents to the extent that § 6104 applies.

Criminal or civil fraud cases

.08 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, and granting conferences in the national
office) do not apply to a technical advice memorandum 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 technical advice memorandum is given to the taxpayer after
all proceedings in the investigations or assessments are complete, but before the Commissioner mails the notice of intention to disclose the technical advice memorandum under §
6110(f)(1). The taxpayer may then provide the statement of proposed deletions to the national office.

SECTION 11. HOW DOES
A TAXPAYER APPEAL A
DISTRICT DIRECTOR’S OR
CHIEF, APPEALS OFFICE’S,
DECISION NOT TO SEEK
TECHNICAL ADVICE?
Taxpayer notified of decision
not to seek technical advice

.01 If the examining officer or appeals officer concludes that a taxpayer’s request for
referral of an issue to the national office for technical advice does not warrant referral, the
examining officer or appeals officer will tell the taxpayer. A taxpayer’s request for such a
referral will not be denied merely because the national office provided legal advice, other
than advice furnished pursuant to this revenue procedure, to the district or appeals office
on the matter.

Taxpayer may appeal decision
not to seek technical advice

.02 The taxpayer may appeal the decision of the examining officer or appeals officer not
to request technical advice. To do so, the taxpayer must submit to that officer, within 10
calendar days after being told of the decision, a written statement of the facts, law, and arguments on the issue and the reasons why the taxpayer believes the matter should be referred to the national office for technical advice. 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 chief, examination division, or the chief, appeals office.

Chief, examination division,
or chief, appeals office,
determines whether technical
advice will be sought

.03 The examining officer or appeals officer submits the taxpayer’s statement through
channels to the chief, examination division, or the chief, appeals office, along with the
examining officer’s or appeals officer’s statement of why the issue should not be referred
to the national office. The chief determines on the basis of the statements whether technical advice will be requested.
If the chief determines that technical advice 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 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

Sec. 10.06
January 3, 2000

88

2000–1 I.R.B.

10 calendar days after receiving the letter to notify the chief of agreement or disagreement
with the proposed denial.
Chief’s decision may be
reviewed but not appealed

.04 The taxpayer may not appeal the decision of the chief, examination division, or the
chief, appeals office, not to request technical advice from the national office. However, if
the taxpayer does not agree with the proposed denial, all data on the issue for which technical advice has been sought, including the taxpayer’s written request and statements, will
be submitted to the Assistant Commissioner (Examination), the Assistant Commissioner
(International), or the National Director of Appeals, as appropriate.
The Assistant Commissioner (Examination), the Assistant Commissioner (International),
or the National Director of Appeals, as appropriate, will review the proposed denial solely
on the basis of the written record, and no conference will be held with the taxpayer or the
taxpayer’s representative. The Assistant Commissioner (Examination), the Assistant
Commissioner (International), or the National Director of Appeals may consult with the
national office, if necessary, and will notify the district office or appeals office within 45
calendar days of receiving all the data regarding the request for technical advice whether
the proposed denial is approved or disapproved. The district office or appeals office will
then notify the taxpayer.
While the matter is being reviewed, the district office or appeals office suspends action
on the issue (except when the delay would prejudice the Government’s interest).
The provisions of this revenue procedure in regard to review of the proposed denial of a
request for technical advice continue to be applicable in those situations in which the authority normally exercised by the district director or chief, appeals office, has been delegated to another official.

SECTION 12. HOW ARE
REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN?
Taxpayer notified

.01 Once a request for technical advice has been sent to the national office, only a district
director or a chief, appeals office, may withdraw a request for technical advice. He or she
may ask to withdraw a request at any time before the responding transmittal memorandum
for the technical advice is signed.
The district director or the chief, appeals office, as appropriate, must notify the taxpayer
in writing of an intent to withdraw the request for technical advice except—
(1) when the period of limitations on assessment is about to expire and the taxpayer has
declined to sign a consent to extend the period; or
(2) when such notification would be prejudicial to the best interests of the Government.
If the taxpayer does not agree that the request for technical advice should be withdrawn,
the procedures in section 11 of this revenue procedure must be followed.

National office may
provide views

.02 When a request for technical advice is withdrawn, the national office may send its
views to the district director or the chief, appeals office, when acknowledging the withdrawal request. In an appeals case, acknowledgment of the withdrawal request should be
sent to the appropriate appeals office, through the National Director of Appeals,
C:AP:CIIT. In appropriate cases, the subject matter may be published as a revenue ruling
or as a revenue procedure.

SECTION 13. HOW ARE
CONFERENCES SCHEDULED?
If requested, offered to the

2000–1 I.R.B.

.01 If, after the technical advice request is analyzed, it appears that technical advice

89

Sec. 13.01
January 3, 2000

taxpayer when adverse
technical advice proposed

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.

Normally held within 21 days
of contact with the taxpayer

.02 The conference must be held within 21 calendar days after the taxpayer is contacted.
If conferences are being arranged for more than one request for technical advice for the
same taxpayer, they will be scheduled to cause the least inconvenience to the taxpayer.
The national office will notify the examining officer or appeals officer of the scheduled
conference and will offer the examining officer or appeals officer the opportunity to attend
the conference. The Assistant Commissioner (Examination), the Assistant Commissioner
(International), the National Director of Appeals, the district director, or the chief, appeals
office, may designate other Service representatives to attend the conference in lieu of, or
in addition to, the examining officer or appeals officer.

21-day period will be extended
if justified and approved

.03 An extension of the 21-day period will be granted only if the taxpayer justifies it in
writing and the assistant chief counsel of the office to which the case is assigned approves
the request. No extension will be granted without the approval of the assistant chief counsel. Except in rare and unusual circumstances, the national office 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 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 the national office to consider, and either approve or deny, the request before the end of the 21day period. If unusual circumstances near the end of the 21-day period make a timely
written request impractical, the national office should be told orally before the end of the
period about the problem. The written request for extension must be submitted to the national office promptly after the oral request. The taxpayer will be told promptly (and later
in writing) of the approval or denial of a requested extension.

Denial of extension
cannot be appealed

.04 There is no right to appeal the denial of a request for extension. If the national office
is not advised of problems with meeting the 21-day period or if the written request is not
sent promptly after the national office is notified of problems with meeting the 21-day period, the case will be processed on the basis of the existing record.

Entitled to one conference of right

.05 A taxpayer is entitled by right to only one conference in the national office unless one
of the circumstances discussed in section 13.09 of this revenue procedure exists. This
conference is normally held at the branch level and is attended by a person who has authority to sign the transmittal memorandum (discussed in section 15.14 of this revenue
procedure) in his or her own name or on behalf of the branch chief.
When more than one branch has taken an adverse position on an issue 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 for the branch chief will
attend the conference. If more than one subject is discussed at the conference, the discussion constitutes a conference for each subject.
To have a thorough and informed discussion of the issues, the conference usually is held
after the branch 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 branch to an assistant chief counsel or
to any other Service official. But see section 13.09 of this revenue procedure for situations in which the Service may offer additional conferences.

Conference may not be taped

Sec. 13.02
January 3, 2000

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

90

2000–1 I.R.B.

If requested and approved,
conference will be delayed to
address a request for relief
under § 7805(b)

.07 In the event of a tentatively adverse determination, the taxpayer may request, in
writing, a delay of the conference so that the taxpayer can prepare and submit a brief
requesting relief under § 7805(b) (discussed in section 18 of this revenue procedure). The
assistant chief counsel 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 decision and the § 7805(b)
relief request within 10 days of receiving the taxpayer’s § 7805(b) request. There is no
right to appeal the denial of a request for delaying the conference. See section 18.04 of
this revenue procedure for the conference procedures if the § 7805(b) request is made after
the conference on the substantive issues has been held.

Service makes tentative
recommendations

.08 The senior Service representative at the conference ensures that the taxpayer has full
opportunity to present views on all the issues in question. The Service representatives explain the tentative decision on the substantive issues and the reasons for it.
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 for the tentative recommendation.
No commitment will be made as to the conclusion that the Service will finally adopt regarding the outcome of the § 7805(b) issue or on any other issue discussed.

Additional conferences
may be offered

.09 The Service will offer the taxpayer an additional conference if, after the conference
of right, an adverse holding is proposed on a new issue or on the same issue but on
grounds different from those discussed at the first conference.
When a proposed holding is reversed at a higher level with a result less favorable to the
taxpayer, the taxpayer has no right to another conference if the grounds or arguments on
which the reversal is based were discussed at the conference of right.
The limitation on the number of conferences to which a taxpayer is entitled does not prevent the national office from inviting a taxpayer to attend additional conferences, including conferences with an official higher than the branch level, if national office personnel
think they are necessary. Such conferences are not offered as a matter of course simply
because the branch has reached an adverse decision. In general, conferences with higher
level officials are offered only if the Service determines that the case presents significant
issues of tax policy or tax administration and that the consideration of these issues would
be enhanced by additional conferences with the taxpayer.
In accordance with section 13.02 of this revenue procedure, the examining officer or appeals officer will be offered the opportunity to participate in any additional taxpayer’s
conference, including a conference with an official higher than the branch level. Section
13.02 of this revenue procedure also provides that other Service representatives are allowed to participate in the conference.

Additional information
submitted after the conference

.10 Within 21 calendar days after the conference, the taxpayer must furnish to the
national office any additional data, lines of reasoning, precedents, etc., that the taxpayer
proposed and discussed at the conference but did not previously or adequately present in
writing. This additional information must be submitted by letter with a penalties of perjury statement in the form described in section 15.11(2) of this revenue procedure.
The taxpayer must also send a copy of the additional information to the district director
or the chief, appeals office, for comment. Any comments by the district director or the
chief, appeals office, must be furnished promptly to the appropriate branch in the national
office. If the district director or the chief, appeals office, does not have any comments, he
or she must notify the branch representative promptly.

2000–1 I.R.B.

91

Sec. 13.10
January 3, 2000

If the additional information would have a significant impact on the facts in the request for
technical advice, the national office will ask the district director or the chief, appeals office,
for comment on the facts contained in the additional information submitted. The district director or the chief, appeals office, will give the additional information prompt attention.
If the additional information is not received within 21 calendar days, the technical advice
memorandum will be issued on the basis of the existing record.
An extension of the 21-day period may be granted only if the taxpayer justifies it in writing and the assistant chief counsel 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 13.03 and 13.04 of this revenue procedure.
Under limited circumstances,
may schedule a conference to
be held by telephone

.11 Infrequently, taxpayers 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, D.C.. If a taxpayer makes such a request, the branch chief, senior technician
reviewer (or senior technical reviewer), or assistant to the branch chief (or assistant branch
chief) of the branch to which the case is assigned will decide if it is appropriate in the particular case to hold the conference of right by telephone. If the request is approved, the
taxpayer will be advised when to call the Service representatives (not a toll-free call).
In accordance with section 13.02 of this revenue procedure, the examining officer or appeals officer will be offered the opportunity to participate in the telephone conference.
Section 13.02 of this revenue procedure also provides that other Service representatives
are allowed to participate in the conference.

SECTION 14. HOW IS
STATUS OF REQUEST
OBTAINED?
Taxpayer or the taxpayer’s
representative may request status
from the district or appeals office

.01 The taxpayer or the taxpayer’s representative may obtain information on the status
of the request for technical advice by contacting the district or appeals office that
requested the technical advice. See section 15.09 of this revenue procedure concerning the
time for discussing the tentative conclusion with the taxpayer or the taxpayer’s representative.
See section 16.02 of this revenue procedure regarding discussions of the contents of the technical advice memorandum with the taxpayer or the taxpayer’s representative.

National office will give status
updates to the district director
or chief, appeals office

.02 The branch representative or branch chief assigned to the technical advice request
will give status updates on the request once a month to the district director or chief,
appeals office. In addition, a district director or a chief, appeals office, may get current information on the status of the request for technical advice by calling the person whose
name and telephone number are shown on the acknowledgment of receipt of the request
for technical advice.
See section 15.10 of this revenue procedure about discussing the final conclusions with
the district or appeals office. Further, the district director or the chief, appeals office, will
be notified at the time the technical advice memorandum is mailed.

SECTION 15. HOW DOES
THE NATIONAL OFFICE
PREPARE THE TECHNICAL
ADVICE MEMORANDUM?
Delegates authority to
branch chiefs

Sec. 13.10
January 3, 2000

.01 The authority to issue technical advice on issues under the jurisdiction of the Associate Chief Counsel (Domestic) has largely been delegated to the branch chiefs in the
offices of the Assistant Chief Counsel (Corporate), the Assistant Chief Counsel (Financial

92

2000–1 I.R.B.

Institutions and Products), the Assistant Chief Counsel (Income Tax and Accounting), and
the Assistant Chief Counsel (Passthroughs and Special Industries).
The branch chiefs in the Office of Associate Chief Counsel (Employee Benefits and Exempt Organizations) and in the Office of Associate Chief Counsel (International) have
largely been delegated the authority to issue technical advice on issues under their jurisdiction.
The authority to issue technical advice on issues under the jurisdiction of the Associate
Chief Counsel (Enforcement Litigation) has largely been delegated to the branch chiefs in
the office of the Assistant Chief Counsel (General Litigation).
Determines whether request
has been properly made

.02 A request for technical advice generally is given priority and processed expeditiously. As soon as the request for technical advice is assigned, the branch representative analyzes the file to see whether it meets all requirements of sections 6, 7, and 9 of this
revenue procedure.
However, if the request does not comply with the requirements of section 9.02 of this
revenue procedure relating to the deletions statement, the Service will follow the procedure in the last paragraph of section 10.06 of this revenue procedure.

Contacts the district or
appeals office to discuss issues

.03 Usually, within 21 calendar days after the branch receives the request for technical
advice, a representative of the branch telephones the district or appeals office to discuss
the procedural and substantive issues in the request that come within the branch’s jurisdiction.

Informs the district or appeals
office if any matters in the request
have been referred to another
branch or office

.04 If the technical advice request concerns matters within the jurisdiction of more than
one branch or office, a representative of the branch that received the original technical
advice request informs the district or appeals office within 21 calendar days of receiving
the request that—
(1) the matters within the jurisdiction of another branch or office have been referred to
the other branch or office for consideration; and
(2) a representative of the other branch or office will contact the district or appeals office
about the technical advice request within 21 calendar days after receiving it in accordance
with section 15.03 of this revenue procedure.

Informs the district or appeals
office if additional
information is needed

.05 The branch representative will inform the district or appeals office that the case is
being returned if substantial additional information is required to resolve an issue. Cases
should be returned for additional information when significant unresolved factual variances exist between the statement of facts submitted by the district or appeals office and
the taxpayer. Cases should also be returned if major procedural problems cannot be resolved by telephone. The district or 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 branch representative will request the additional information in the most expeditious manner without returning the case. Within 21
calendar days after receiving the information requested, the branch representative will notify the district or appeals office of the tentative conclusion and an estimated date by
which the technical advice memorandum will be mailed, or an estimated date when a tentative conclusion will be made.

Informs the district or appeals
office of the tentative conclusion

2000–1 I.R.B.

.06 If all necessary information has been provided, the branch representative informs the
district or appeals office of the tentative conclusion and the estimated date that the technical advice memorandum will be mailed.

93

Sec. 15.07
January 3, 2000

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 branch representative informs the district or appeals office of the estimated date the
tentative conclusion will be made.

Advises the district or appeals
office if tentative conclusion
is changed

.08 Because the branch representative’s tentative conclusion may change during the
preparation and review of the technical advice memorandum, the tentative conclusion
should not be considered final. If the tentative conclusion is changed, the branch representative will inform the district or appeals office.

Generally does not discuss the
tentative conclusion with
the taxpayer

.09 Neither the national office nor the district or appeals office should advise the
taxpayer or the taxpayer’s representative of the tentative conclusion during consideration
of the request for technical advice. However, in order to afford taxpayers an appropriate
opportunity to prepare and present their position, the taxpayer or the taxpayer’s representative should be told the tentative conclusion when scheduling the adverse conference, at
the adverse conference, or in any discussion between the scheduling and commencement
of the adverse conference. See section 16.02 of this revenue procedure regarding discussions of the contents of the technical advice memorandum with the taxpayer or the taxpayer’s representative.

Advises the district or appeals
office of final conclusions

.10 In all cases, the branch representative will inform the examining officer or appeals
officer of the national office’s final conclusions. The examining officer or appeals officer
will be offered the opportunity to discuss the issues and the national office’s final conclusions before the technical advice memorandum is issued.

If needed, requests
additional information

.11 If, following the initial contact referenced in section 15.03 of this revenue procedure,
it is determined, after discussion with the branch chief or reviewer, that additional information is needed, a branch representative will obtain the additional information from the
taxpayer or from the district director or the chief, appeals office, in the most expeditious
manner possible. Any additional information requested from the taxpayer by the national
office must be submitted by letter with a penalties of perjury statement within 21 calendar
days after the request for information is made.
(1) Request to receive a request for additional information by fax. To facilitate
prompt action on technical advice requests, the taxpayer is encouraged to request that if
the Service requests additional information from the taxpayer, the Service does so by fax.
A request to fax a copy of the request for additional information to the taxpayer or the
taxpayer’s authorized representative must be made in writing, either as part of the original
technical advice request or prior to the mailing of the request for additional information.
The request to fax must contain the fax number of the taxpayer or the taxpayer’s authorized representative to whom the document is to be faxed.
Because of the unsecured nature of a fax transmission, the Service will take certain precautions to protect confidential information. For example, the Service will use a cover
sheet that identifies the intended recipient of the fax and the number of pages transmitted,
that does not identify the taxpayer by name or identifying number, and that contains a statement prohibiting unauthorized disclosure of the document if a recipient of the faxed document is not the intended recipient of the fax. Also, for example, the cover sheet should be
faxed in an order in which it will become the first page covering the faxed document.
(2) Penalties of perjury statement. Additional information submitted to the national
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 and dated by the taxpayer, not the taxpayer’s
representative. A stamped signature is not permitted.

Sec. 15.08
January 3, 2000

94

2000–1 I.R.B.

(3) 21-day period will be extended if justified and approved. A written request for an
extension of time to submit additional information must be received by the national office
within the 21-day period, giving compelling facts and circumstances to justify the proposed extension. The assistant chief counsel of the office to which the case is assigned
will determine whether to grant or deny the request for an extension of the 21-day period.
No extension will be granted without the approval of the assistant chief counsel. Except
in rare and unusual circumstances, the national office 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 extension.
(4) If the taxpayer does not submit additional information. If the national office does
not receive the additional information within the 21-day period, plus any extensions
granted by the assistant chief counsel, the national office will issue the technical advice
memorandum based on the existing record.
Requests taxpayer to send
additional information to the
national office and a copy to
the district director or chief,
appeals office

.12 Whether or not requested by the Service, any additional information submitted by
the taxpayer should be sent to the national office. Generally, the taxpayer needs only to
submit the original of the additional information to the national office. However, in
appropriate cases, the national office may request additional copies of the information.

Also, the taxpayer must send a copy to the district director or the chief, appeals office, for
comment. Any comments by the district director or the chief, appeals office, must be furnished promptly to the appropriate branch in the national office. If the district director or
the chief, appeals office, does not have any comments, he or she must notify the branch
representative promptly.
Informs the taxpayer when
requested deletions will
not be made

.13 Generally, before replying to the request for technical advice, the national office
informs the taxpayer orally or in writing of the material likely to appear in the technical
advice memorandum that the taxpayer proposed be deleted but that the Service has determined should not be deleted.
If so informed, the taxpayer may submit within 10 calendar days any further information
or arguments supporting the taxpayer’s proposed deletions.
The Service attempts, if possible, to resolve all disagreements about proposed deletions
before the national office replies to the request for technical advice. 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 technical advice memorandum. These matters, however,
may be considered at any conference otherwise scheduled for the request. See section
16.04 of this revenue procedure for the procedures to protest the disclosure of information
in the technical advice memorandum.

Prepares reply in two parts

.14 The replies to technical advice requests are 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). In unusual
cases, it is a way of giving the district or appeals office strategic advice that need not be
discussed with the taxpayer. If the transmittal memorandum provides more than the fact
that the technical advice memorandum is attached or the case is returned for further development, the transmittal memorandum may constitute Chief Counsel Advice, as defined in
§ 6110(i)(1), subject to disclosure under § 6110.
The second part is the technical advice memorandum, which contains—
(1) a statement of the issues;
(2) the conclusions of the national office;

2000–1 I.R.B.

95

Sec. 15.14
January 3, 2000

(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 national office.
The conclusions give direct answers, whenever possible, to the specific issues raised by
the district or appeals office. However, the national office is not bound by the precise
statement of the issues as submitted by the taxpayer or by the district or appeals office and
may reframe the issues to be answered in the technical advice memorandum. The discussion of the issues will be in sufficient detail so that the district or appeals officials will understand the reasoning underlying the conclusion.
Accompanying the technical advice memorandum is a notice under § 6110(f)(1) of intention to disclose a technical advice memorandum (including a copy of the version proposed
to be open to public inspection and notations of third party communications under
§ 6110(d)).
Routes replies to
appropriate office

.15 Replies to requests for technical advice are addressed to the district director or the
chief, appeals office. Replies to requests from appeals should be routed to the appropriate
appeals office through the National Director of Appeals, C:AP:CIIT.

SECTION 16. HOW DOES A
DISTRICT OR APPEALS
OFFICE USE THE TECHNICAL
ADVICE?
Generally applies advice in
processing the taxpayer’s case

.01 The district director or the chief, appeals office, must process the taxpayer’s case
on the basis of the conclusions in the technical advice memorandum unless–
(1) the district director or the chief, appeals office, decides that the conclusions reached
by the national office in a technical advice memorandum should be reconsidered;
(2) in the case of technical advice unfavorable to the taxpayer, the chief, appeals office,
decides to settle the issue under existing authority; or
(3) in the case of technical advice unfavorable to a Coordinated Examination Program
taxpayer on a coordinated issue within the Industry Specialization Program or International Field Assistance Specialization Program on which appeals has coordinated issue papers containing settlement guidelines or positions, the examination case manager decides
to settle the issue under the settlement authority delegated in Delegation Order No. 247,
1996–1 C.B. 356.
Except as provided in paragraph (1), (2), or (3) of this section 16.01, the conclusions in a
technical advice memorandum involving a § 103 obligation and the issuer of this obligation must be treated by the district director or the chief, appeals office, as applying to the
issuer and any holder of the obligation, unless the holder initiates a request for technical
advice on the same issue addressed in the technical advice memorandum involving the issuer, and the national office issues a technical advice memorandum involving that issue
and that holder.

Discussion with the taxpayer

Sec. 15.14
January 3, 2000

.02 The national office will not discuss the contents of the technical advice memorandum with the taxpayer or the taxpayer’s representative until the taxpayer has been given a
copy by the district or appeals office. See section 15.09 of this revenue procedure concerning the time for discussing the tentative conclusion with the taxpayer or the taxpayer’s
representative.

96

2000–1 I.R.B.

Gives copy to the taxpayer

.03 The district director or the chief, appeals office, only after adopting the technical advice, gives the taxpayer—
(1) a copy of the technical advice memorandum described in section 15.14 of this revenue procedure; and
(2) the notice under § 6110(f)(1) of intention to disclose the technical advice memorandum (including a copy of the version proposed to be open to public inspection and notations of third party communications under § 6110(d)).
This requirement does not apply to a technical advice memorandum involving a criminal
or civil fraud investigation, or a jeopardy or termination assessment, as described in section 10.08 of this revenue procedure.

Taxpayer may protest
deletions not made

.04 After receiving the notice under § 6110(f)(1) of intention to disclose the technical
advice memorandum, the taxpayer may protest the disclosure of certain information in it.
The taxpayer must submit a written statement within 20 calendar days identifying those
deletions not made by the Service that the taxpayer believes should have been made. The
taxpayer must also submit a copy of the version of the technical advice memorandum proposed to be open to public inspection with brackets around the deletions proposed by the
taxpayer that have not been made by the national office.
Generally, the national office considers only the deletion of material that the taxpayer has
proposed be deleted or other deletions as required under § 6110(c) before the national office
reply is sent to the district director or the chief, appeals office. Within 20 calendar days after
it receives the taxpayer’s response to the notice under § 6110(f)(1), the national office must
mail to the taxpayer its final administrative conclusion about the deletions to be made.

When no copy is given
to the taxpayer

.05 If the national office tells the district director or the chief, appeals office, that a copy
of the technical advice memorandum should not be given to the taxpayer and the taxpayer
requests a copy, the district director or the chief, appeals office, will tell the taxpayer that
no copy will be given.

SECTION 17. WHAT IS THE
EFFECT OF TECHNICAL
ADVICE?
Applies only to the taxpayer
for whom technical advice
was requested

.01 A taxpayer may not rely on a technical advice memorandum issued by the Service
for another taxpayer. See § 6110(k)(3).

Usually applies retroactively

.02 Except in rare or unusual circumstances, a holding in a technical advice memorandum that is favorable to the taxpayer is applied retroactively.
Moreover, because technical advice, as described in section 2 of this revenue procedure, is
issued only on closed transactions, a holding that is adverse to the taxpayer is also applied
retroactively, unless the Associate Chief Counsel (Domestic), the Associate Chief Counsel
(Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement
Litigation), or the Associate Chief Counsel (International), as appropriate, exercises the discretionary authority under § 7805(b) to limit the retroactive effect of the holding.

Generally applied retroactively
to modify or revoke prior
technical advice

.03 A holding that modifies or revokes a holding in a prior technical advice memorandum 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

.04 If a technical advice memorandum relates to a continuing action or a series of
actions, ordinarily it is applied until specifically withdrawn or until the conclusion is

2000–1 I.R.B.

97

Sec. 17.04
January 3, 2000

withdrawn, modified, or revoked

modified or revoked by the enactment of legislation, the 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 technical advice memorandum.

Applies to continuing action
or series of actions until
material facts change

.05 A taxpayer is not protected against retroactive modification or revocation of a
technical advice memorandum involving a continuing action or a series of actions
occurring after the material facts on which the technical advice memorandum is based
have changed.

Does not apply retroactively
under certain conditions

.06 Generally, a technical advice memorandum that modifies or revokes a letter ruling or
another technical advice memorandum is not applied retroactively either to the taxpayer to
whom or for whom the letter ruling or technical advice memorandum was originally issued, or to a taxpayer whose tax liability was directly involved in such letter ruling or
technical advice memorandum if—
(1) there has been no misstatement or omission of material facts;
(2) the facts at the time of the transaction are not materially different from the facts on
which the letter ruling or technical advice memorandum was based;
(3) there has been no change in the applicable law;
(4) in the case of a letter ruling, it was originally issued on a prospective or proposed
transaction; and
(5) the taxpayer directly involved in the letter ruling or technical advice memorandum acted
in good faith in relying on the letter ruling or technical advice memorandum, and the retroactive modification or revocation would be to the taxpayer’s detriment. For example, the tax liability of each shareholder is directly involved in a letter ruling or technical advice memorandum on the reorganization of a corporation. However, the tax liability of a member of an
industry is not directly involved in a letter ruling or technical advice memorandum issued to
another member and, therefore, the holding in a modification or revocation of a letter ruling or
technical advice memorandum 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
technical advice memorandum previously issued to another client.
When a letter ruling to a taxpayer or a technical advice memorandum involving a taxpayer is modified or revoked with retroactive effect, the notice to the taxpayer, except in
fraud cases, sets forth the grounds on which the modification or revocation is being made
and the reason why the modification or revocation is being applied retroactively.

SECTION 18. HOW MAY
RETROACTIVE EFFECT
BE LIMITED?
Taxpayer may request that
retroactivity be limited

.01 Under § 7805(b), the Associate Chief Counsel (Domestic), the Associate Chief
Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel
(Enforcement Litigation), or the Associate Chief Counsel (International), as the Commissioner’s delegate, may prescribe the extent, if any, to which a technical advice memorandum will be applied without retroactive effect.
A taxpayer for whom a technical advice memorandum was issued or for whom a technical advice request is pending may request that the Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International), as appropriate, limit the retroactive effect of any holding in the technical advice

Sec. 17.05
January 3, 2000

98

2000–1 I.R.B.

memorandum or of any subsequent modification or revocation of the technical advice
memorandum.
When germane to a pending technical advice request, a taxpayer should request to limit
the retroactive effect of the holding of the technical advice memorandum early during the
consideration of the technical advice request by the national office. This § 7805(b) request should be made initially as part of that pending technical advice request. The national office, however, will consider a § 7805(b) request to limit the retroactive effect of
the holding if the request is made at a later time.
Form of request to limit
retroactivity—continuing
transaction before examination
of return

.02 When a technical advice memorandum that concerns a continuing transaction is
modified or revoked by, for example, issuance of a subsequent revenue ruling, or temporary or final regulation, a request to limit the retroactive effect of the modification or revocation of the technical advice memorandum must be made in the form of a request for a
letter ruling if the request is submitted before an examination of the return pertaining to
the transaction that is the subject of the request for the letter ruling. The requirements for
a letter ruling request are given in sections 8 and 12.11 of Rev. Proc. 2000–1.

Form of request to limit
retroactivity—in all
other cases

.03 In all other cases during the course of an examination of a taxpayer’s return by the
district director or during consideration of the taxpayer’s return by the chief, appeals
office (including when the taxpayer is informed that the district director or the chief, appeals
office, will recommend that a technical advice memorandum, letter ruling, or determination
letter previously issued to, or with regard to, the taxpayer be modified or revoked), a taxpayer’s
request to limit retroactivity must be made in the form of a request for technical advice.
The request must meet the general requirements of a technical advice request, which are
given in sections 6, 7, and 9 of this revenue procedure. The request must also—
(1) state that it is being made under § 7805(b);
(2) state the relief sought;
(3) explain the reasons and arguments in support of the relief sought (including a discussion of the five items listed in section 17.06 of this revenue procedure and any other factors as they relate to the taxpayer’s particular situation); and
(4) include any documents bearing on the request.
The taxpayer’s request, including the statement that the request is being made under §
7805(b), must be submitted to the district director or the chief, appeals office, who must
then forward the request to the national office for consideration.

Taxpayer’s right
to a conference

.04 When a request for technical advice concerns only the application of § 7805(b), the
taxpayer has the right to a conference in the national office in accordance with the provisions
of section 13 of this revenue procedure. In accordance with section 13.02 of this revenue procedure, the examining officer or appeals officer will be offered the opportunity to attend the
conference on the § 7805(b) issue. Section 13.02 of this revenue procedure also provides that
other Service representatives are allowed to participate in the conference.
If the request for application of § 7805(b) is included in the request for technical advice
on the substantive issues or is made before the conference of right on the substantive issues, the § 7805(b) issues will be discussed at the taxpayer’s one conference of right.
If the request for the application of § 7805(b) is made as part of a pending technical advice 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 only.

2000–1 I.R.B.

99

Sec. 19.01
January 3, 2000

SECTION 19. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 99–2?

.01 The titles in this revenue procedure are based on the current organization of the
Service. Accordingly, the Assistant Commissioner (Employee Plans and Exempt
Organizations) has been replaced by the Commissioner, Tax Exempt and Government
Entities Division.
.02 Section 9.01(2) is amended in two respects if the taxpayer chooses to submit the written
statement and information of facts and arguments when the Service initiates the request for technical advice. First, the taxpayer and the district or appeals office should determine a mutually
agreed date for the submission of the taxpayer’s statement and information so that it will be forwarded to the national office with the request for technical advice. Second, a 21-day time period
is provided for submitting the taxpayer’s statement and information to the national office when
the request for technical advice is forwarded to the national office without such statement and
information. If the national office does not receive the taxpayer’s statement and information
within the 21-day period, plus any extensions granted, the national office, at its discretion, may
base its advice on the facts provided by the district or appeals office.
.03 Section 9.03 is amended to provide the new address for appeals offices to send a request for technical advice.
.04 Section 9.05 is amended to conform to Notice N(39)1(10)3–1, dated October 22,
1999, which allows the submission of an original, a copy, or a fax of the power of attorney.
.05 Section 15.05 is amended to provide that the district or appeals office should
promptly notify the taxpayer of a decision to return the case for further factual development or other reasons.
.06 Sections 15.11(1) through 15.11(3) of Rev. Proc. 99–2 have been redesignated as
sections 15.11(2) through 15.11(4) in this revenue procedure. New section 15.11(1) is
added to provide the procedures for receiving a request for additional information by fax.

SECTION 20. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?

Rev. Proc. 99–2, 1999–1 I.R.B. 73, is superseded.

SECTION 21. WHAT IS
THE EFFECTIVE DATE
OF THIS REVENUE
PROCEDURE?

This revenue procedure is effective January 10, 2000.

DRAFTING INFORMATION

The principal author of this revenue procedure is Alan Cooper of the Office of Assistant
Chief Counsel (Passthroughs and Special Industries). For further information regarding
this revenue procedure for matters under the jurisdiction of—
(1) the Associate Chief Counsel (Domestic) or the Associate Chief Counsel (Employee
Benefits and Exempt Organizations), contact Mr. Cooper or Gregory Taitt at (202) 6223110 (not a toll-free call);
(2) the Associate Chief Counsel (International), contact Gerard Traficanti at (202) 6223619 (not a toll-free call);
(3) the Associate Chief Counsel (Enforcement Litigation), contact Alan C. Levine at
(202) 622-3610 (not a toll-free call);
(4) the Assistant Commissioner (Examination), contact Susan Blake at (202) 622-3664
(not a toll-free call); or
(5) the National Director of Appeals, contact Jean Cichaski at (202) 694-1816 (not a toll-free call).

Sec. 19.01
January 3, 2000

100

2000–1 I.R.B.

INDEX
References are to sections in Rev. Proc. 2000–2
Additional Information
– procedure for submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15.05, 15.11, 15.12
after conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.10
– proposed deletions under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.02
– to receive request for additional information by fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.01, 15.11(1)
Conferences
– offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.02, 13.01
after conference of right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.09
exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.08, 11.04, 15.13
– pre-submission conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
– scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.07, 18.04
telephone conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.11
Definitions
– national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
– taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
– technical advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Discussions with Taxpayers
– technical advice memorandum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.02
– technical advice request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.09
Employee Plans and Exempt Organizations
– application of § 6104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.07
– jurisdiction of Commissioner, Tax Exempt and Government Entities Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.02
Extension of Time
– to appeal decision not to request technical advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.02
– to disagree with statement of facts in technical advice request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.03, 10.04
– to schedule conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.03, 13.04
– to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.10, 15.11
– to submit taxpayer’s initial statement of facts and arguments after
technical advice request forwarded to national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.01(2)
Foreign laws and documents
– required with technical advice request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.01(4), 9.01(5)
certified English translations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.01(4), 9.01(5)
– effect if interpretation is a material fact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.05
Penalties of Perjury Statement
– form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11(2)
– required with additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.10, 15.11
– signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11(2)
Power of Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.05
Pre-submission Conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Public Disclosure Under § 6110
– deletion statement required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.02, 10.08
exception when § 6104 applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.07
failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.06, 15.02
signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.02

2000–1 I.R.B.

101

January 3, 2000

INDEX
References are to sections in Rev. Proc. 2000–2
– notice of intention to disclose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.14, 16.03
protesting deletions not made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13, 16.04
Retroactive Effect
– in general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.02-17.06
on letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.06
– request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
format of request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.02, 18.03
scheduling conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.07, 18.04
Revenue Rulings
– effect on a continuing transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.04
request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.02
Section 301.9100 Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.01
Status of Technical Advice Request
– to district or appeals office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.02, 15.08, 15.10
– to taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.01, 15.09
Where to Send
– additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.10, 15.12
– taxpayer’s initial statement of facts and arguments after technical advice request forwarded to national office . . . . . . . . . .9.01(2)
– technical advice request from appeals office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.03
– technical advice request from district office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.03
Withdrawal of Technical Advice Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

January 3, 2000

102

2000–1 I.R.B.

26 CFR 601.201: Rulings and determination
letters.

Rev. Proc. 2000–3
SECTION 1. PURPOSE AND
NATURE OF CHANGES
.01 The purpose of this revenue procedure is to update Rev. Proc. 99–3, 1999–1
I.R.B. 103, as amplified and modified by
subsequent revenue procedures, by providing a revised list of those areas of the Internal Revenue Code under the jurisdiction of
the Associate Chief Counsel (Domestic) and
the Associate Chief Counsel (Employee
Benefits and Exempt Organizations) relating
to issues on which the Internal Revenue Service will not issue letter rulings or determination letters. For a list of areas under the jurisdiction of the Associate Chief Counsel
(International) relating to international issues
on which the Service will not issue letter rulings or determination letters, see section 3 of
Rev. Proc. 2000–7 in this Bulletin. For a list
of areas under the jurisdiction of the Office
of the Commissioner, Tax Exempt and Government Entities Division relating to issues,
plans or plan amendments on which the Service will not issue letter rulings and determination letters, see, respectively, section 8 of
Rev. Proc. 2000–4 in this Bulletin, and section 3.02 of Rev. Proc. 2000–6 in this Bulletin.
.02 Changes
(1) Old section 3.01(15), dealing with
§ 274, has been updated to cite a more recent revenue procedure.
(2) Old sections 3.01(22) and (24),
dealing with the formation of a holding
company under §§ 351 and 368(a)(1)(B),
are modified to indicate that the Service
will rule on transfers of stock to a controlled corporation where such transfers
are undertaken prior to the distribution of
the stock of the controlled corporation in
a transaction qualifying under § 355.
This exception to these no-rule provisions
is added to provide taxpayers with current
advice as to the Service’s practice in this
area.
(3) Old section 4.01(11), dealing with
whether expenses are nondeductible commuting expenses under §§ 162 and 262,
has been updated to cite a more recent
revenue ruling.
(4) New section 5.01(26), dealing with
the § 1361 definition of an S corporation,

2000–1 I.R.B.

has been added to the under study no-rule
area to indicate that the Service will not
issue rulings as to whether a state law limited partnership electing under
§ 301.7701–3 of the regulations 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 partnership complies with
§ 1361(b)(1)(D). See Rev. Proc. 99–51,
1999–52 I.R.B. 760.
(5) Old section 6.02, dealing with
§ 446, has been updated by deleting certain prior references and adding references to Rev. Proc. 99–49, 1999–52
I.R.B. 725, and the Appendix thereto, and
Rev. Proc. 92–29, 1992–1 C.B. 748.
SECTION 2. BACKGROUND AND
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 individuals 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 areas are set
forth in four sections of this revenue procedure. Section 3 reflects those areas in which
rulings and determinations will not be issued. Section 4 sets forth those areas in
which they will not ordinarily be issued.
“Not ordinarily” means that unique and
compelling reasons must be demonstrated to
justify the issuance of a ruling or determination letter. Those sections reflect a number
of specific questions and problems as well as
general areas. Section 5 lists specific areas
for which the Service is temporarily not issuing rulings and determinations because those
matters are under extensive study. Finally,
section 6 of this revenue procedure lists specific areas where the Service will not ordinarily issue rulings because the Service has
provided automatic approval procedures for
these matters.

103

See Rev. Proc. 2000–1, page 4, this Bulletin, particularly section 7 captioned “Under
What Circumstances Does the Service Have
Discretion to Issue Letter Rulings and Determination Letters?” for general instructions
and other situations in which the Service will
not or ordinarily will not issue letter rulings
or determination letters.
With respect to the items listed, revenue
rulings or revenue procedures may be published in the Internal Revenue Bulletin from
time to time to provide general guidelines regarding the position of the Service.
Additions or deletions to this revenue procedure as well as restatements of items listed
will be made by modification of this revenue
procedure. Changes will be 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-inclusive. 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 preclude
the submission of requests for technical advice to the National Office from other offices
of the Service.
SECTION 3. AREAS IN WHICH
RULINGS OR DETERMINATION
LETTERS WILL NOT BE ISSUED
.01 Specific questions and problems.
(1) Section 79.—Group-Term Life Insurance Purchased for Employees.—
Whether a group insurance plan for 10 or
more employees qualifies as group-term insurance, if the amount of insurance is not
computed under a formula that would meet
the requirements of § 1.79–1(c)(2)(ii) of the
Income Tax Regulations if the group consisted of fewer than 10 employees.
(2) Section 83.—Property Transferred
in Connection with Performance of Services.—Whether a restriction constitutes
a substantial risk of forfeiture, if the employee is a controlling shareholder. Also,
whether a transfer has occurred, if the
amount paid for the property involves a
nonrecourse obligation.
(3) Section 105(h).—Amount Paid to
Highly Compensated Individuals Under
Discriminatory Self-Insured Medical Expense Reimbursement Plan.—Whether,

January 3, 2000

following a determination that a self-insured medical expense reimbursement
plan is discriminatory, that plan had previously made reasonable efforts to comply with tax anti-discrimination rules.
(4) Section 117.—Qualified Scholarships.—Whether an employer-related
scholarship or fellowship grant is excludible from the employee’s gross income, if
there is no intermediary private foundation distributing the grants, as there was
in Rev. Proc. 76–47, 1976–2 C.B. 670.
(5) Section 119.—Meals or Lodging
Furnished for the Convenience of the Employer.—Whether the value of meals or
lodging is excludible from gross income
by an employee who is a controlling
shareholder of the employer.
(6) Section 121 and former § 1034.—Exclusion of Gain from Sale of Principal Residence; Rollover of Gain on Sale of Principal
Residence.—Whether property qualifies as
the taxpayer’s principal residence.
(7) Section 125.—Cafeteria Plans.—
Whether amounts used to provide groupterm life insurance under § 79, accident
and health benefits under §§ 105 and 106,
and dependent care assistance programs
under § 129 are includible in the gross income of participants and considered
“wages” for purposes of §§ 3401, 3121,
and 3306 when the benefits are offered
through a cafeteria plan.
(8) Section 162.—Trade or Business
Expenses.—Whether compensation is
reasonable in amount.
(9) Section 163.—Interest.—The income tax consequences of transactions involving “shared appreciation mortgage”
(SAM) loans in which a taxpayer, borrowing
money to purchase real property, pays a
fixed rate of interest on the mortgage loan
below the prevailing market rate and will
also pay the lender a percentage of the appreciation in value of the real 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.)
(10) Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a taxpayer who advances funds to a charitable
organization and receives therefor a
promissory note may deduct as contribu-

January 3, 2000

tions, in one taxable year or in each of
several years, amounts forgiven by the
taxpayer in each of several years by endorsement on the note.
(11) Section 213.—Medical, Dental,
Etc., Expenses.— Whether a capital expenditure for an item that is ordinarily
used for personal, living, or family purposes, 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.
(12) Section 264(b).—Certain Amounts
Paid in Connection with Insurance Contracts.—Whether “substantially all” the premiums of a contract of insurance are paid
within a period of 4 years from the date on
which the contract is purchased. Also,
whether an amount deposited is in payment
of a “substantial number” of future premiums on such a contract.
(13) Section 264(c)(1).—Certain
Amounts Paid in Connection with Insurance
Contracts.—Whether § 264(c)(1) applies.
(14) Section 269.—Acquisitions Made to
Evade or Avoid Income Tax.—Whether an
acquisition is within the meaning of § 269.
(15) Section 274.—Disallowance of
Certain Entertainment, Etc., Expenses.—
Whether a taxpayer who is traveling away
from home on business may, in lieu of
substantiating the actual cost of meals,
deduct a fixed per-day amount for meal
expenses that differs from the amount
prescribed in the revenue procedure providing optional rules for substantiating
the amount of travel expenses for the period in which the expense was paid or incurred, such as Rev. Proc. 97–59, 1997–2
C.B. 593, or its successor, Rev. Proc.
98–64, 1998–2 C.B. 825.
(16) Section 302.—Distributions in
Redemption of Stock.—Whether § 302(b)
applies when the consideration given in
redemption by a corporation consists entirely or partly of its notes payable, and
the shareholder’s stock is held in escrow
or as security for payment of the notes
with the possibility that the stock may or
will be returned to the shareholder in the
future, upon the happening of specific defaults by the corporation.
(17) Section 302.—Distributions in
Redemption of Stock.—Whether § 302(b)
applies when the consideration given in
redemption by a corporation in exchange
for a shareholder’s stock consists entirely

104

or partly of the corporation’s promise to
pay an amount based on, or contingent on,
future earnings of the corporation, when
the promise to pay is contingent on working capital being maintained at a certain
level, or any other similar contingency.
(18) Section 302.—Distributions in Redemption of Stock.—Whether § 302(b) applies to a redemption of stock, if after the
redemption the distributing corporation
uses property that is owned by the shareholder from whom the stock is redeemed
and the payments by the corporation for
the use of the property are dependent upon
the corporation’s future earnings or are
subordinate to the claims of the corporation’s general creditors. Payments for the
use of property will not be considered to be
dependent upon future earnings merely because they are based on a fixed percentage
of receipts or sales.
(19) Section 302.—Distributions in
Redemption of Stock.—Whether the acquisition 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
meaning of that section, unless the facts
and circumstances are materially identical
to those set forth in Rev. Rul. 85–19,
1985–1 C.B. 94, Rev. Rul. 79–67, 1979–1
C.B. 128, Rev. Rul. 77–293, 1977–2 C.B.
91, Rev. Rul. 57–387, 1957–2 C.B. 225,
Rev. Rul. 56–584, 1956–2 C.B. 179, or
Rev. Rul. 56–556, 1956–2 C.B. 177.
(20) Section 302(b)(4) and (e).—Redemption from Noncorporate Shareholder
in Partial Liquidation; Partial Liquidation
Defined.—The amount of working capital
attributable to a business or portion of a
business terminated that may be distributed in partial liquidation.
(21) Section 312.—Effect on Earnings and
Profits.—The determination of the amount of
earnings and profits of a corporation.
(22) Section 351.—Transfer to Corporation Controlled by Transferor.—
Whether § 351 applies to an exchange of
stock for stock in the formation of a holding company, and whether the taxpayer is
subject to the consequences of qualification under that section (such as nonrecognition and basis consequences) that are
adequately addressed by a statute, regulation, decision of the Supreme Court, tax
treaty, revenue ruling, revenue procedure,
notice, or other authority published in the
Internal Revenue Bulletin. Transfers that

2000–1 I.R.B.

do not involve the formation of a holding
company are not subject to this provision.
For purposes of this provision, if such
an exchange qualifies under both § 351
and another corporate restructuring provision and the other provision is not covered by this revenue procedure, the Service will treat any request for a
qualification ruling under the other provision as a request for a qualification ruling
under § 351. A taxpayer or the taxpayer’s
representative (as the Service deems appropriate) seeking a qualification ruling
for such an exchange under any such
other provision must, accordingly, state to
the best of knowledge and belief that the
exchange does not qualify under § 351.
The Service will not rule on the qualification of an exchange of stock under § 351,
even if it is an integral part of a larger transaction that involves other issues upon
which the Service will rule and it is impossible to determine the tax consequences of
the larger transaction without making a determination with regard to the exchange of
stock. However, in such event, the Service
will rule on the tax consequences of the
larger transaction, provided the taxpayer or
the taxpayer’s representative (as the Service deems appropriate) states to the best of
knowledge and belief that the exchange
will (or will not) qualify under § 351. If the
Service issues a ruling on the larger transaction, the ruling will state that no opinion
is expressed as to whether or not the exchange qualifies under § 351. Notwithstanding the foregoing, the Service will rule
on transfers of stock to a controlled corporation where such transfers are undertaken
prior to the distribution of the stock of the
controlled corporation in a transaction qualifying under § 355.
SUBISSUES: Additionally, the Service
will have the discretion to rule on significant subissues that must be resolved to determine whether a transaction that is in this
no–rule area qualifies under § 351. However, the Service will only rule on these
subissues if in the view of the Service they
are significant and not clearly and adequately addressed by a statute, regulation,
decision of the Supreme Court, tax treaty,
revenue ruling, revenue procedure, notice,
or other authority published in the Internal
Revenue Bulletin.
To obtain a ruling on a subissue, the
taxpayer must explain the significance of
the subissue, set forth the authorities most

2000–1 I.R.B.

closely related to the subissue, and explain why the subissue is not resolved by
the authorities. The Service will require
the taxpayer or the taxpayer’s representative (as the Service deems appropriate) to
state to the best of knowledge and belief
that the transaction will (or will not) qualify under § 351 if the Service rules as the
taxpayer proposes on the subissue.
A taxpayer may seek a presubmission
conference to determine whether a ruling
on the subissue can be obtained under this
section. See section 11.07 of Rev. Proc.
2000–1. If the Service issues a ruling on a
subissue, the ruling will state that no opinion is expressed as to whether the transaction in question qualifies under § 351.
COLLATERAL ISSUES: Although
the Service will not rule on the consequences of qualification of an exchange
of stock for stock in the formation of a
holding company under § 351 if the consequences are adequately addressed by a
statute, regulation, decision of the
Supreme Court, tax treaty, revenue ruling,
revenue procedure, notice, or other authority published in the Internal Revenue
Bulletin, it will rule where the consequences of qualification are not adequately addressed by these authorities. To
obtain a ruling on a collateral issue, the
taxpayer or the taxpayer’s representative
(as the Service deems appropriate) must
state to the best of knowledge and belief
that the exchange qualifies under § 351,
set forth the authorities most closely related to the collateral issue, and explain
why the collateral issue is not resolved by
these authorities. If the Service issues a
ruling on a collateral issue, the ruling will
state that no opinion is expressed as to
whether the exchange in question qualifies under § 351.
The Service will also continue to rule on
issues that arise in connection with an exchange of stock for stock in the formation
of a holding company but do not depend
upon or affect qualification under § 351.
(23) Section 368(a)(1)(A).—Definitions Relating to Corporate Reorganizations.—Whether a transaction constitutes
a corporate reorganization within the
meaning of § 368(a)(1)(A), including a
transaction that qualifies under
§ 368(a)(1)(A) by reason of
§ 368(a)(2)(D) or § 368(a)(2)(E), and
whether the taxpayer is subject to the consequences of qualification under that sec-

105

tion (such as nonrecognition and basis
consequences) that are adequately addressed by a statute, regulation, decision
of the Supreme Court, tax treaty, revenue
ruling, revenue procedure, notice, or other
authority published in the Internal Revenue Bulletin.
For purposes of this provision, if a transaction qualifies under both § 368(a)(1)(A)
and another corporate restructuring provision and the other provision is not covered
by this revenue procedure, the Service will
treat any request for a qualification ruling
under the other provision as a request for a
qualification ruling under § 368(a)(1)(A).
A taxpayer or the taxpayer’s representative
(as the Service deems appropriate) seeking
a qualification ruling under any such other
provision must, accordingly, state to the
best of knowledge and belief that the transaction does not qualify under
§ 368(a)(1)(A). The Service will continue
to rule on transactions that qualify under
§ 368(a)(1)(G), even if they are also defined in § 368(a)(1)(A).
The Service will not rule on the qualification of a reorganization under
§ 368(a)(1)(A), even if it is an integral
part of a larger transaction that involves
other issues upon which the Service will
rule and it is impossible to determine the
tax consequences of the larger transaction
without determining the tax consequences
of the reorganization. However, in such
event, the Service will rule on the tax consequences of the larger transaction, provided the taxpayer or the taxpayer’s representative (as the Service deems
appropriate) states to the best of knowledge and belief that the reorganization
will (or will not) qualify under
§ 368(a)(1)(A). If the Service issues a
ruling on the larger transaction, the ruling
will state that no opinion is expressed as
to whether or not the reorganization qualifies under § 368(a)(1)(A). For example,
the Service will not rule on whether a
transaction constitutes a corporate reorganization within the meaning of
§ 368(a)(1)(A), even if the larger transaction also involves the issue of whether a
prior distribution of stock in a subsidiary
containing assets unwanted by the acquiring corporation qualifies under § 355.
See Rev. Rul. 78–251, 1978–1 C.B. 89.
However, in such event, if the taxpayer or
the taxpayer’s representative (as the Service deems appropriate) states to the best

January 3, 2000

of knowledge and belief that the merger
qualifies under § 368(a)(1)(A), the Service will rule as to whether the prior stock
distribution qualifies under § 355. Such
ruling will state that no opinion is expressed as to whether or not the reorganization qualifies under § 368(a)(1)(A).
SUBISSUES: Additionally, the Service
will have the discretion to rule on significant subissues that must be resolved to determine whether the transaction qualifies
under § 368(a)(1)(A) (including transactions qualifying by reason of § 368(a)(2)(D)
or § 368(a)(2)(E)). However, the Service
will only rule on such subissues if in the
view of the Service they are significant and
not clearly and adequately addressed by a
statute, regulation, decision of the Supreme
Court, tax treaty, revenue ruling, revenue
procedure, notice, or other authority published in the Internal Revenue Bulletin. To
obtain a ruling on such a subissue, the taxpayer must explain the significance of the
subissue, set forth the authorities most
closely related to the subissue, and explain
why the subissue is not resolved by these
authorities. The taxpayer or the taxpayer’s
representative (as the Service deems appropriate) will also be required to state to the
best of knowledge and belief that the transaction will (or will not) qualify under
§ 368(a)(1)(A), if the Service rules as the
taxpayer proposes on the subissue.
A taxpayer may seek a presubmission
conference to determine whether a ruling
on the subissue can be obtained under this
section. See section 11.07, Rev. Proc.
2000–1. If the Service issues a ruling on
a subissue, the ruling will state that no
opinion is expressed as to whether the
transaction in question qualifies under
§ 368(a)(1)(A).
COLLATERAL ISSUES: Although
the Service will not rule on the consequences of qualification as a reorganization under § 368(a)(1)(A) if the consequences are adequately addressed by a
statute, regulation, decision of the
Supreme Court, tax treaty, revenue ruling,
revenue procedure, notice, or other authority published in the Internal Revenue
Bulletin, it will rule where the consequences of qualification are not adequately addressed by these authorities.
For example, the Service will issue a
§ 381(c)(4) ruling in connection with a
§ 368(a)(1)(A) reorganization. To obtain
a ruling on a collateral issue, the taxpayer

January 3, 2000

or the taxpayer’s representative (as the
Service deems appropriate) must state to
the best of knowledge and belief that the
transaction
qualifies
under
§ 368(a)(1)(A), set forth the authorities
most closely related to the collateral issue,
and explain why the collateral issue is not
resolved by these authorities. If the Service
issues a ruling on a collateral issue, the ruling will state that no opinion is expressed as
to whether the transaction in question qualifies under § 368(a)(1)(A).
The Service will also continue to rule
on issues that arise in connection with a
transaction under § 368(a)(1)(A) but do
not depend upon or affect qualification
under § 368(a)(1)(A).
(24) Section 368(a)(1)(B).—Definitions Relating to Corporate Reorganizations.—Whether the acquisition of stock
in the formation of a holding company
constitutes a corporate reorganization
within the meaning of § 368(a)(1)(B), and
whether the taxpayer is subject to the consequence of qualification under that section (such as nonrecognition and basis
consequences) that are adequately addressed by a statute, regulation, decision
of the Supreme Court, tax treaty, revenue
ruling, revenue procedure, notice, or other
authority published in the Internal Revenue Bulletin. Acquisitions of stock that
do not involve the formation of a holding
company are not subject to this provision.
For purposes of this provision, if such
an acquisition of stock qualifies under
both § 368(a)(1)(B) and another corporate
restructuring provision, and the other provision is not covered by this revenue procedure, the Service will treat any request
for a qualification ruling under the other
provision as a request for a qualification
ruling under § 368(a)(1)(B). A taxpayer
or the taxpayer’s representative (as the
Service deems appropriate) seeking a
qualification ruling for such an acquisition under any such other provision must,
accordingly, state to the best of knowledge and belief that the acquisition does
not qualify under § 368(a)(1)(B).
The Service will not rule on the qualification of an acquisition of stock under
§ 368(a)(1)(B), even if it is an integral
part of a larger transaction that involves
other issues upon which the Service will
rule and it is impossible to determine the
tax consequences of the larger transaction
without determining the tax consequences

106

of the acquisition. However, in such
event, the Service will rule on the tax consequences of the larger transaction, provided the taxpayer or the taxpayer’s representative (as the Service deems
appropriate) states to the best of knowledge and belief that the acquisition will
(or will not) qualify under § 368(a)(1)(B).
If the Service issues a ruling on the larger
transaction, the ruling will state that no
opinion is expressed as to whether or not
the acquisition qualifies under
§ 368(a)(1)(B). Notwithstanding the
foregoing, the Service will rule on transfers of stock to a controlled corporation
where such transfers are undertaken prior
to the distribution of the stock of the controlled corporation in a transaction qualifying under § 355.
SUBISSUES: Additionally, the Service will have the discretion to rule on
significant subissues that must be resolved to determine whether a transaction
that is in this no-rule area qualifies under
§ 368(a)(1)(B). However, the Service
will only rule on these subissues if in the
view of the Service they are significant
and not clearly and adequately addressed
by a statute, regulation, decision of the
Supreme Court, tax treaty, revenue ruling,
revenue procedure, notice, or other authority published in the Internal Revenue
Bulletin. To obtain a ruling on a subissue,
the taxpayer must explain the significance
of the subissue, set forth the authorities
most closely related to the subissue, and
explain why the subissue is not resolved
by these authorities. The Service will require the taxpayer or the taxpayer’s representative (as the Service deems appropriate) to state to the best of knowledge and
belief that the acquisition will (or will
not) qualify under § 368(a)(1)(B), if the
Service rules as the taxpayer proposes on
the subissue.
A taxpayer may seek a presubmission
conference to determine whether a ruling
on the subissue can be obtained under this
section. See section 11.07, Rev. Proc.
2000–1. If the Service issues a ruling on
a subissue, the ruling will state that no
opinion is expressed on whether the acquisition in question qualifies under
§ 368(a)(1)(B).
COLLATERAL ISSUES: Although
the Service will not rule on the consequence of qualification of an acquisition
of stock in the formation of a holding

2000–1 I.R.B.

company under § 368(a)(1)(B) if the consequences are adequately addressed by a
statute, regulation, decision of the
Supreme Court, tax treaty, revenue ruling,
revenue procedure, notice, or other authority published in the Internal Revenue
Bulletin, it will rule where the consequences of qualification are not adequately addressed by these authorities. To
obtain a ruling on a collateral issue, the
taxpayer or the taxpayer’s representative
(as the Service deems appropriate) must
state to the best of knowledge and belief
that the acquisition qualifies under
§ 368(a)(1)(B), set forth the authorities
most closely related to the collateral
issue, and explain why the collateral issue
is not resolved by these authorities. If the
Service issues a ruling on a collateral
issue, the ruling will state that no opinion
is expressed as to whether the acquisition
in
question
qualifies
under
§ 368(a)(1)(B).
The Service will also continue to rule on
issues that arise in connection with an acquisition of stock in the formation of a
holding company but do not depend upon
or affect qualification under § 368(a)(1)(B).
(25) Section 368(a)(1)(B).—Definitions Relating to Corporate Reorganizations.—The acceptability of an estimation
procedure or the acceptability of a specific sampling procedure to determine the
basis of stock acquired by an acquiring
corporation in a reorganization described
in § 368(a)(1)(B).
(26) Section 368(a)(1)(E).—Definitions
Relating to Corporate Reorganizations.—
Whether a transaction constitutes a corporate recapitalization within the meaning of
§ 368(a)(1)(E) (or a transaction that also
qualifies under § 1036) when either (i) the
transaction involves a closely held corporation or (ii) the issues involved are substantially similar to those described in the
following revenue rulings:
Rev. Rul. 82–34, 1982–1 C.B. 59 (continuity of business enterprise);
Rev. Rul. 77–479, 1977–2 C.B. 119
(continuity of shareholder interest);
Rev. Rul. 77–238, 1977–2 C.B. 115
(conversion of shares of one class of stock
into shares of another class, as permitted
by certificate of incorporation);
Rev. Rul. 74–269, 1974–1 C.B. 87
(major shareholder’s exchange of common stock for preferred stock);
Rev. Rul. 56–654, 1956–2 C.B. 216

2000–1 I.R.B.

(corporate charter amended to provide
preferred stock with increased redemption
and liquidation value, where common and
preferred stock held pro rata);
Rev. Rul. 55–112, 1955–1 C.B. 344
(common stock exchanged for preferred
stock); and
Rev. Rul. 54–482, 1954–2 C.B. 148
(old common stock exchanged for new
common stock).
The above no-ruling area does not
apply, however, to any corporate recapitalization that is an integral part of a
larger transaction, if it is impossible to determine the tax consequences of the larger
transaction without making a determination with regard to the recapitalization.
(27) Section 368(a)(1)(F).—Definitions Relating to Corporate Reorganizations.—Whether a transaction constitutes
a reorganization within the meaning of
§ 368(a)(1)(F), and whether the taxpayer
is subject to the consequences of qualification under that section (such as nonrecognition and basis consequences) that
are adequately addressed by a statute, regulation, decision of the Supreme Court,
tax treaty, revenue ruling, revenue procedure, notice, or other authority published
in the Internal Revenue Bulletin.
For purposes of this provision, if a
transaction qualifies under both
§ 368(a)(1)(F) and another corporate restructuring provision, and the other provision is not covered by this revenue procedure, the Service will treat any request for
a qualification ruling under the other provision as a request for a qualification ruling under § 368(a)(1)(F). A taxpayer or
the taxpayer’s representative (as the Service deems appropriate) seeking a qualification ruling under any such other provision must, accordingly, state to the best of
knowledge and belief that the transaction
does not qualify under § 368(a)(1)(F).
The Service will not rule on the qualification of a reorganization under
§ 368(a)(1)(F), even if it is an integral
part of a larger transaction that involves
other issues upon which the Service will
rule and it is impossible to determine the
tax consequences of the larger transaction
without determining the tax consequences
of the reorganization. However, in such
event, the Service will rule on the tax consequences of the larger transaction, provided the taxpayer or the taxpayer’s representative (as the Service deems

107

appropriate) states to the best of knowledge and belief that the reorganization
will (or will not) qualify under
§ 368(a)(1)(F). If the Service issues a ruling on the larger transaction, the ruling
will state that no opinion is expressed as
to whether or not the reorganization qualifies under § 368(a)(1)(F).
SUBISSUES: Additionally, the Service will have the discretion to rule on
significant subissues that must be resolved to determine whether a transaction
that is in this no-rule area qualifies under
§ 368(a)(1)(F). However, the Service will
only rule on such subissues if in the view
of the Service they are significant and not
clearly and adequately addressed by a
statute, regulation, decision of the
Supreme Court, tax treaty, revenue ruling,
revenue procedure, notice, or other authority published in the Internal Revenue
Bulletin. To obtain a ruling on such a
subissue, the taxpayer must explain the
significance of the subissue, set forth the
authorities most closely related to the
subissue, and explain why the subissue is
not resolved by these authorities. The
Service will require the taxpayer or the
taxpayer’s representative (as the Service
deems appropriate) to state to the best of
knowledge and belief that the transaction
will (or will not) qualify under
§ 368(a)(1)(F), if the Service rules as the
taxpayer proposes on the subissue.
A taxpayer may seek a presubmission
conference to determine whether a ruling
on the subissue can be obtained under this
section. See section 11.07, Rev. Proc.
2000–1. If the Service issues a ruling on
a subissue, the ruling will state that no
opinion is expressed on whether the transaction in question qualifies under
§ 368(a)(1)(F).
COLLATERAL ISSUES: Although
the Service will not rule on the consequences of qualification as a reorganization under § 368(a)(1)(F) if the consequences are adequately addressed by a
statute, regulation, decision of the
Supreme Court, tax treaty, revenue ruling,
revenue procedure, notice, or other authority published in the Internal Revenue
Bulletin, it will rule where the consequences of qualification are not adequately addressed by these authorities. To
obtain a ruling on a collateral issue, the
taxpayer or the taxpayer’s representative
(as the Service deems appropriate) must

January 3, 2000

state to the best of knowledge and belief
that the transaction qualifies under
§ 368(a)(1)(F), set forth the authorities
most closely related to the collateral issue
and explain why the collateral issue is not
resolved by these authorities. If the Service issues a ruling on a collateral issue,
the ruling will state that no opinion is expressed as to whether the transaction in
question qualifies under § 368(a)(1)(F).
The Service will also continue to rule
on issues that arise in connection with a
transaction under § 368(a)(1)(F) but do
not depend upon or affect qualification
under § 368(a)(1)(F).
(28) Section 425.—Substitution or Assumption of Incentive Stock Options.—
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 modification which
results in the issuance of a new option by
reason of failing to satisfy the spread test
requirement of § 425(a)(1) or the ratio test
requirement of § 1.425–1(a)(4). The Service will continue to rule on the issue of
whether the new ISO or the assumption of
the old ISO gives the employee additional
benefits not present under the old option
within the meaning of § 425(a)(2).
(29) Section 451.—General Rule for
Taxable Year of Inclusion.—The tax consequences of a non-qualified unfunded
deferred-compensation arrangement with
respect to a controlling shareholder-employee eligible to participate in the
arrangement.
(30) Section 451.—General Rule for
Taxable Year of Inclusion.—The tax consequences of unfunded deferred-compensation arrangements where the arrangements
fail to meet the requirements of Rev. Proc.
92–65, 1992–2 C.B. 428, and Rev. Proc.
71–19, 1971–1 C.B. 698.
(31) Sections 451 and 457.—General
Rule for Taxable Year of Inclusion; Deferred Compensation Plans of State and
Local Governments and Tax-Exempt Organizations.—The tax consequences to
unidentified independent contractors in
nonqualified unfunded deferred-compensation plans. This applies to plans established under § 451 by employers in the
private sector and to plans of state and
local governments and tax-exempt organizations under § 457. However, a ruling
with respect to a specific independent

January 3, 2000

contractor’s participation in such a plan
may be issued.
(32) Section 641.—Imposition of
Tax.—Whether the period of administration or settlement of an estate or a trust
(other than a trust described in § 664) is
reasonable or unduly prolonged.
(33) 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.
(34) Section 664.—Charitable Remainder Trusts.—Whether the settlement
of a charitable remainder trust upon the
termination of the noncharitable interest
is made within a reasonable period of
time.
(35) Section 704(e).—Family Partnerships.—Matters relating to the validity of
a family partnership when capital is not a
material income producing factor.
(36) Section 856.—Definition of Real
Estate Investment Trust.—Whether a corporation whose stock is “paired” with or
“stapled” to stock of another corporation
will qualify as a real estate investment
trust under § 856, if the activities of the
corporations are integrated.
(37) Section 1034 (prior to TRA
1997).—See section 3.01(6), above.
(38) Section 1221.—Capital Asset Defined.—Whether specialty stock allocated
to an investment account by a registered
specialist on a national securities exchange is a capital asset.
(39) Section 1551.—Disallowance of
the Benefits of the Graduated Corporate
Rates and Accumulated Earnings Credit.—
Whether a transfer is within § 1551.
(40) Section 2031.—Definition of
Gross Estate.—Actuarial factors for valuing interests in the prospective gross estate of a living person.
(41) Section 2512.—Valuation of
Gifts.—Actuarial factors for valuing
prospective or hypothetical gifts of a
donor.
(42) Sections 3121, 3306, and 3401.—
Definitions.—For purposes of determining 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.

108

(43) 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.)
(44) Section 7701.—Definitions.—
The classification of an instrument that
has certain voting and liquidations 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 assets held by a subsidiary.
.02 General Areas.
(1) The results of transactions that lack
a bona fide business purpose or have as
their principal purpose the reduction of
federal taxes.
(2) A matter upon which a court decision adverse to the Government has been
handed down and the question of following the decision or litigating further has
not yet been resolved.
(3) A matter involving alternate plans
of proposed transactions or involving hypothetical situations.
(4) A matter involving the federal tax
consequences of any proposed federal,
state, local or municipal legislation. The
Service may provide general information
in response to an inquiry.
(5) Whether under Subtitle F (Procedure
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. 2000–1.
(8) Whether, under the common law
rules applicable in determining the employer-employee relationship, a professional staffing corporation (loan-out corporation) or the subscriber is the
employer of individuals, if:
(i) the loan-out corporation hires employees of the subscriber and assigns the
employees back to the subscriber, or
(ii) the loan-out corporation assigns individuals to subscribers for more than a
temporary period (1 year or longer).
SECTION 4. AREAS IN WHICH
RULINGS OR DETERMINATION
LETTERS WILL NOT ORDINARILY

2000–1 I.R.B.

BE ISSUED
.01 Specific questions and problems.
(1) Sections 38, 39, 46, and 48.—General Business Credit; Carryback and Carryforward of Unused Credits; Amount of
Credit; Energy Credit; Reforestation
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 Defined.—Determination as to who is the true
owner of property in cases involving the
sale of securities, or participation interests
therein, where the purchaser has the contractual right to cause the securities, or participation interests therein, to be purchased
by either the seller or a third party.
(3) Sections 61 and 163.—Gross Income 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 property, or the liability for the indebtedness,
is in another party.
(4) 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.
(5) Section 103.—Interest on State and
Local Bonds.—Whether a state or local
governmental obligation that does not
meet the criteria of section 5 of Rev. Proc.
89–5, 1989–1 C.B. 774, is an “arbitrage
bond” within the meaning of former
§ 103(c)(2) solely by reason of the investment of the bond proceeds in acquired
nonpurpose obligations at a materially
higher yield more than 3 years after issuance of the bonds or 5 years after issuance of the bonds in the case of construction issues described in former
§ 1.103–13(a)(2)(ii)(E).
(6) Sections 104(a)(2) and 3121.—
Compensation for Injuries or Sickness;
Definitions.—Whether an allocation of
the amount of a settlement award (including a lump sum award) between back pay,
compensatory damages, punitive dam-

2000–1 I.R.B.

ages, etc. is a proper allocation for federal
tax purposes.
(7) Section 141.—Private Activity
Bond; Qualified Bond.—With respect to
requests made pursuant to Rev. Proc.
88–33, 1988–1 C.B. 835, whether state or
local bonds will meet the “private business 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 purchases 30 percent or more of the actual
output of the facility but 10 percent or less
of the subparagraph (5) output of the facility as defined in § 1.103–7(b)(5)(ii)(b)
(issued under former § 103(b)). In similar
situations, the Service will not ordinarily
issue rulings or determination letters concerning questions arising under paragraphs (3), (4), and (5) of § 141(b).
(8) Sections 142 and 144.—Exempt
Facility Bond; Qualified Small Issue
Bond.—Whether an issue of private activity 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 a 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 non-qualified costs,
equals more than 5 percent of the net proceeds, as defined in § 150(a)(3).
(9) Section 148.—Arbitrage.—
Whether amounts received as proceeds
from the sale of municipal bond financed
property and pledged to the payment of
debt service or pledged as collateral for
the municipal bond issue are sinking fund
proceeds within the meaning of former
§ 1.103–13(g) (issued under former
§ 103(c)) or replaced proceeds described
in § 148(a)(2) (or former § 103(c)(2)(B)).
(10) Section 162.—Trade or Business
Expenses.—Whether the requisite risk
shifting and risk distribution necessary to
constitute insurance are present for purposes of determining the deductibility
under § 162 of amounts paid (premiums)
by a taxpayer for insurance, unless the
facts of the transaction are within the
scope of Rev. Rul. 78–338, 1978–2 C.B.
107, or Rev. Rul. 77–316, 1977–2 C.B.

109

53.
(11) Sections 162 and 262.—Trade or
Business Expenses; Personal, Living, and
Family Expenses.—Whether expenses
are nondeductible commuting expenses,
except for situations governed by Rev.
Rul. 99–7, 1999–5 I.R.B. 4.
(12) Section 163.—See section
4.01(3), above.
(13) Section 167.—Depreciation.
(i) Useful lives of assets.
(ii) Depreciation rates.
(iii) Salvage value of assets.
(14) Sections 167 and 168.—Depreciation; Accelerated Cost Recovery System.—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.
(15) Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a
transfer to a pooled income fund described in § 642(c)(5) qualifies for a charitable contribution deduction under
§ 170(f)(2)(A).
(16) Section 170(c).—Charitable, Etc.,
Contributions and Gifts.—Whether a taxpayer who transfers property to a charitable 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 170.—Charitable, Etc.,
Contributions and 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 qualifies for a charitable deduction under § 170(f)(2)(A).
(18) Section 216.—Deduction of
Taxes, Interest, and Business Depreciation by Cooperative Housing Corporation
Tenant–Stockholder.—If a cooperative
housing corporation (CHC), as defined in
§ 216(b)(1), transfers an interest in real
property to a corporation (not a CHC) in
exchange for stock or securities of the
transferee corporation, which engages in
commercial activity with respect to the
real property interest transferred, whether
(i) the income of the transferee corporation 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 deter-

January 3, 2000

mining whether 80 percent or more of the
gross income of the CHC is derived from
tenant–stockholders within the meaning
of § 216(b)(1)(D).
(19) Section 262.—See section
4.01(11), above.
(20) Section 265(a)(2).—Expenses and
Interest Relating to Tax-Exempt Income.—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.
(21) Section 302.—Distributions in
Redemption of Stock.—The tax effect of
the redemption of stock for notes, when
the payments on the notes are to be made
over a period in excess of 15 years from
the date of issuance of such notes.
(22) Section 302(b)(4) and (e).—Redemption from Noncorporate Shareholder
in Partial Liquidation; Partial Liquidation
Defined.—Whether a distribution will
qualify as a distribution in partial liquidation 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) employees. (Partial liquidations that qualify as
§ 302(e)(2) business terminations are not
subject to this provision.)
(23) Sections 302(b)(4) and (e), 331,
332, and 346(a).—Effects on Recipients
of Distributions in Corporate Liquidations.—The tax effect of the liquidation of
a corporation preceded or followed by the
reincorporation of all or a part of the business and assets when more than a nominal
amount of the stock (that is, more than 20
percent in value) of both the liquidating
corporation and the transferee corporation
is owned by the same shareholders; or
when a liquidation is followed by the sale
of the corporate assets by the shareholders
to another corporation in which such
shareholders own more than a nominal
amount of the stock (that is, more than 20
percent in value).
(24) Section 306.—Dispositions of
Certain Stock.—Whether the distribution
or disposition or redemption of “section
306 stock” in a closely held corporation is
in pursuance of a plan having as one of its
principal purposes the avoidance of federal income taxes within the meaning of
§ 306(b)(4).
(25) Sections 331 and 332.—See section 4.01(23), above.
(26) Sections 331 and 346(a).—Gain

January 3, 2000

or Loss to Shareholders in Corporate Liquidations.—The tax effect of the liquidation of a corporation by a series of distributions, when the distributions in
liquidation are to be made over a period in
excess of 3 years from the adoption of the
plan of liquidation.
(27) Section 341.—Collapsible Corporations.—Whether a corporation will be
considered to be a “collapsible corporation,” that is, whether it was “formed or
availed of” with the view of certain tax
consequences. However, ruling requests
will be considered on this matter when the
enterprise (i) has been in existence for at
least 20 years or has clearly demonstrated
that it has realized two-thirds of the taxable income to be derived from the manufacturing, constructing, producing, or purchasing of property as stated in
§ 341(b)(1)(A) and as described in Rev.
Rul. 72–48, 1972–1 C.B. 102; (ii) has had
an aggregate change in the shareholders’
interests of not more than 10 percent during that period (except for transfers
among family members, as defined in
§ 267(c)(4), or redemptions of stock to
pay death taxes pursuant to § 303); and
(iii) has conducted substantially the same
trade or business during that period. The
period referred to in (ii) and (iii) above is
the lesser of 20 years of corporate existence or the period in which the enterprise
has realized two-thirds of the taxable income from activities specified in
§ 341(b)(1)(A).
(28) Section 346(a).—See section
4.01(23), above.
(29) Section 346(a).—See section
4.01(26), above.
(30) Section 351.—Transfer to Corporation Controlled by Transferor.—The tax
effect of the transfer when part of the consideration received by the transferors consists of an instrument that is a bond,
debenture, or any other evidence of indebtedness of the transferee and a determination as to whether the “indebtedness”
is properly classified as debt or equity is
required in order to establish that the requirements of § 351 are met.
(31) Section 351.—Transfer to Corporation Controlled by Transferor.—
Whether § 351 applies to the transfer of
an interest in real property by a cooperative housing corporation (as described in
§ 216(b)(1)) to a corporation in exchange
for stock or securities of the transferee

110

corporation, if the transferee engages in
commercial activity with respect to the
real property interest transferred.
(32) Section 355.—Distribution of
Stock and Securities of a Controlled Corporation.—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 corporation as a result of the distributing corporation transferring cash or other liquid or inactive assets to the controlled corporation
in a transaction in which gain or loss was
not recognized as a result of the transfer
meeting the requirements of § 351(a) or
§ 368(a)(1)(D).
(33) Section 355.—Distribution of
Stock and Securities of a Controlled Corporation.—Whether a distribution of
stock or securities is described in
§ 355(a)(1) when the gross assets of the
trades or businesses relied on to satisfy
the active trade or business requirement
of § 355(b) will have a fair market value
that is less than 5 percent of the total fair
market value of the gross assets of the
corporation directly conducting the trades
or businesses. The Service may rule that
the trades or businesses satisfy the active
trade or business requirement of § 355(b)
if it can be established that, based upon all
relevant facts and circumstances, the
trades or businesses are not de minimis
compared with the other assets or activities of the corporation and its subsidiaries.
(34) Section 441(i).—Taxable Year of
Personal Service Corporations.—
Whether the principal activity of the taxpayer during the testing period for the taxable year is the performance of personal
services within the meaning of
§ 1.441–4T(d)(1)(ii).
(35) Section 448(d)(2)(A).—Limitation
on Use of Cash Method of Accounting;
Qualified Personal Service Corporation.—
Whether 95 percent or more of the time
spent by employees of the corporation,
serving in their capacity as such, is devoted
to the performance of services within the
meaning of § 1.448–1T(e)(4)(i).
(36) Section 451.—General Rule for
Taxable Year of Inclusion.—The tax consequences of a nonqualified deferred
compensation arrangement using a
grantor trust where the trust fails to meet
the requirements of Rev. Proc. 92–64,
1992–2 C.B. 422.

2000–1 I.R.B.

(37) 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.)
(38) Section 642.—Special Rules for
Credits and Deductions; Pooled Income
Fund.—Whether a pooled income fund
satisfies the requirements described in
§ 642(c)(5).
(39) Section 664.—Charitable Remainder Trusts.—Whether a charitable
remainder trust that provides for annuity
or unitrust payments for one or two measuring lives satisfies the requirements described in § 664.
(40) Sections 671 to 679.—Grantors
and Others Treated as Substantial Owners.—In a nonqualified, unfunded deferred compensation arrangement described in Rev. Proc. 92–64, the tax
consequences of the use of a trust, other
than the model trust described in that revenue procedure.
(41) Section 816.—Life Insurance
Company Defined.—Whether the requisite risk shifting and risk distribution necessary to constitute insurance are present
for purposes of determining if a company
is an “insurance company” under
§ 1.801–3(a), unless the facts of the transaction are within the scope of Rev. Rul.
78–338, 1978–2 C.B. 107, or Rev. Rul.
77–316, 1977–2 C.B. 53.
(42) Section 1362.—Election; Revocation; Termination.—All situations in
which an S corporation is eligible to obtain relief for late S corporation, qualified
subchapter S subsidiary, qualified subchapter S trust, or electing small business
trust elections under sections 4 and 5 of
Rev. Proc. 98–55, 1998–2 C.B. 645. (For
instructions on how to seek this relief, see
Rev. Proc. 98–55.)
(43) Section 1502.—Regulations.—
Whether a parent cooperative housing
corporation (as defined in § 216(b)(1))
will be permitted to file a consolidated income tax return with its transferee subsidiary, if the transferee engages in commercial activity with respect to the real
property interest transferred to it by the
parent.
(44) 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

2000–1 I.R.B.

§ 2055(e)(2)(A).
(45) 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 qualifies for a charitable deduction under § 2055(e)(2)(A).
(46) Section 2522.—Charitable and
Similar Gifts.—Whether a transfer to a
pooled income fund described in
§ 642(c)(5) qualifies for a charitable deduction under § 2522(c)(2)(A).
(47) 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
qualifies for a charitable deduction under
§ 2522(c)(2)(A).
(48) 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 annually is more than 50 percent of the initial
net fair market value of the property
transferred 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
purposes 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 account, nor is the value of any
reversion retained by the grantor or the
grantor’s estate.
(49) Section 3121.—See section
4.01(6), above.
.02 General areas.
(1) Any matter in which the determination requested is primarily one of fact,
e.g., market value of property, or whether
an interest in a corporation is to be treated
as stock or indebtedness.
(2) Situations where the requested ruling
deals with only part of an integrated transaction. Generally, a letter ruling will not be
issued on only part of an integrated transaction. If, however, a part of a transaction
falls under a no-rule area, a letter ruling on
other parts of the transaction may be issued.
Before preparing the letter ruling request, a
taxpayer should call the Office of the Assis-

111

tant Chief Counsel having jurisdiction for
the matters on which the taxpayer is seeking a letter ruling to discuss whether a letter
ruling will be issued on part of the transaction.
(3) Situations where two or more items
or sub-methods of accounting are interrelated. 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 method involving
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 question 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
litigation among the parties affected by
the transaction, except for transactions involving 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 information located in such jurisdiction that is relevant to
the analysis or examination of the tax issues
involved in the ruling request.
(b) The provisions of subsection (a)
above shall not apply if the taxpayer or affected related party (i) consents to the disclosure of all relevant information requested by the Service in processing the
ruling request or in the course of an examination 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
commercial secrecy laws in the foreign
jurisdiction with respect to the information requested by the Service. In the
event the taxpayer’s or related party’s
consent to disclose relevant information
or to waive protection of bank or commercial secrecy is determined by the Service to be ineffective or of no force and
effect, then the Service may retroactively
rescind any ruling rendered in reliance on
such consent.
(8) Questions involving the validity of

January 3, 2000

the federal income tax and other taxes set
forth in the Code, questions on the authority or jurisdiction of the Service to enforce the Code or collect information, or
similar matters.
SECTION 5. AREAS UNDER
EXTENSIVE STUDY IN WHICH
RULINGS OR DETERMINATION
LETTERS WILL NOT BE ISSUED
UNTIL THE SERVICE RESOLVES
THE ISSUE THROUGH
PUBLICATION OF A REVENUE
RULING, REVENUE PROCEDURE,
REGULATIONS OR OTHERWISE
.01 Section 61.—Gross Income Defined.—Whether amounts voluntarily deferred by a taxpayer under a deferredcompensation plan maintained by an
organization described in § 501 (other
than a plan maintained by an eligible employer pursuant to the provisions of
§ 457) are currently includible in the taxpayer’s gross income.
.02 Sections 61 and 162.—Gross Income Defined; Trade or Business Expenses.—The tax consequences with respect to a salary reduction arrangement
under which an employee receives and returns salary amounts to the employer.
(Also §§ 3121, 3306, and 3401.)
.03 Section 79.—Group-Term Life Insurance Purchased for Employees.—Whether
life insurance provided for employees under
a “retired lives reserve” plan will be considered group-term insurance. (Also §§ 61, 72,
83, 101, 162, 264, and 641.)
.04 Sections 83 and 451.—Property
Transferred in Connection with Performance of Services; General Rule for Taxable Year of Inclusion.—When compensation 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.
.05 Sections 101, 761, and 7701.—Definitions.—Whether, in connection with
the transfer of a life insurance policy to an
unincorporated organization, (i) the organization will be treated as a partnership
under §§ 761 and 7701, or (ii) the transfer
of the life insurance policy to the organization will be exempt from the transfer
for value rules of § 101, when substan-

January 3, 2000

tially all of the organization’s assets consists or will consist of life insurance policies on the lives of the members.
.06 Section 101.—Certain Death Benefits.—Whether there has been a transfer
for
value
for
purposes
of
§ 101(a) in situations involving a grantor
and a trust when (i) substantially all of the
trust corpus 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.
.07 Section 105.—Amounts Received
Under Accident and Health Plans.—
Whether a medical reimbursement plan,
funded by employer contributions, containing a provision allowing unused amounts to
be carried over and accumulated in an employee’s account qualifies as an accident
and health plan under § 105.
.08 Section 107.—Rental value of parsonages.—Whether amounts distributed
to a retired minister from a pension or annuity plan should be excludible from the
minister’s gross income as a parsonage allowance under § 107.
.09 Section 115.—Income of states,
municipalities, etc.—The results of transactions pursuant to a plan or arrangement
created by state statute a primary objective of which is to enable participants to
pay for the costs of a post-secondary education for themselves or a designated beneficiary, including: (i) whether the plan or
arrangement, itself, is an entity separate
from a state and, if so, how the plan or
arrangement is treated for federal tax purposes; and (ii) whether any contract under
the plan or arrangement is a debt instrument and, if so, how interest or original
issue discount attributable to the contract
is treated for federal tax purposes. (Also
§§ 61, 163, 1275, 2501, and 7701.)
.10 Section 162.—See section 5.02,
above.
.11 Section 162.—Trade or Business
Expenses.—Whether payments paid or

112

accrued by a corporation to an exempt organization as described in § 501(c)(7) or
§ 501(c)(20) are deductible under § 162.
.12 Section 213.—Medical, Dental,
etc., Expenses.—Whether amounts paid
for medical insurance (or other medical
care) extending substantially beyond the
close of the taxable year may be deducted
under § 213 in the year of payment, if the
conditions of § 213(d)(7) are not satisfied.
.13 Section 302(b)(4) and (e).—Redemption from Noncorporate Shareholder
in Partial Liquidation; Partial Liquidation
Defined.—Whether a deemed surrender
of stock as described in Rev. Rul. 90–13,
1990–1 C.B. 65, satisfies the requirements for a redemption, when:
(i) The corporation has outstanding
more than one class of stock and there are
priorities as to dividend or liquidating distributions or any other differences in
stock rights, or
(ii) Either under the terms of the stock
or as established contractually, there are
outstanding any rights affecting the corporation’s stock, such as, but not limited
to, warrants, options, convertible securities, shareholder agreements, or rights of
first refusal.
.14 Section 306(b)(4).—Transactions
Not in Avoidance.—Whether § 306(b)(4)
applies to the distribution and disposition
or redemption of “section 306 stock” that
is subject to mandatory redemption.
.15 Sections 331, 453, and 1239.—The
Tax Effects of Installment Sales of Property
Between Entities with Common Ownership.—The tax effects of a transaction in
which there is a transfer of property by a
corporation to a partnership or other noncorporate 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 received
by the selling corporation or the selling
shareholders includes an installment obligation of the purchasing entity.
.16 Section 351.—Transfer to Corporation Controlled by Transferor.—
Whether § 351 applies to the transfer of
widely held developed or undeveloped
real property or interests therein; widely
held oil and gas properties or interests
therein; or any similarly held properties or

2000–1 I.R.B.

interests to a corporation in exchange for
shares of stock of such corporation when
(i) the transfer is the result of solicitation
by promoters, brokers, or investment
houses, or (ii) the transferee corporation’s
stock is issued in a form designed to render it readily tradable.
.17 Section 451.—See section 5.04,
above.
.18 Section 453.—See section 5.15,
above.
.19 Section 457.—Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations.—
The tax effect of provisions under the
Small Business Job Protection Act affecting plans described in § 457(b), if such
provisions do not comply with section 4
of Rev. Proc. 98–40, 1998–2 C.B. 134.
.20 Section 457.—Deferred Compensation Plans of State and Local Governments and Tax-Exempt Organizations.—
The tax treatment of any § 457 plan that
provides that a loan may be made from
assets held by such plan to any participants or beneficiaries under the plan.
.21 Section 664.—Charitable Remainder
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 subordinate 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 deferred annuity contract
to take advantage of the difference between
trust income under § 643(b) and income for
federal income tax purposes for the benefit
of the unitrust recipient.
.22 Section 671.—Trust Income, Deductions, and Credits Attributable to
Grantors and Others as Substantial Owners.—Whether the grantor will be considered the owner of any portion of a trust
when (i) substantially all of the trust corpus 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

2000–1 I.R.B.

the owner of all or a portion of the trust
under §§ 673 to 677.
.23 Section 721.—Nonrecognition of
Gain or Loss on Contribution.—Whether
§ 721 applies to the contribution of
widely held developed or undeveloped
real property or interests therein; widely
held oil and gas properties or interests
therein; or any similarly held properties or
interests to a partnership in exchange for
an interest in the partnership when (i) the
contribution is the result of solicitation by
promoters, brokers, or investment houses,
or (ii) the interest in the transferee partnership is issued in a form designed to
render it readily tradable.
.24 Section 761.—See section 5.05,
above.
.25 Section 1239.—See section 5.15,
above.
.26 Section 1361.—Definition of a
Small Business Corporation.—Whether a
state law limited partnership 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 partnership complies
with § 1361(b)(1)(D).
.27 Section 1374.—Tax Imposed on Certain Built-in Gains.—The tax consequences
under § 1374 in the following situations: (1)
an S corporation holds timber property on
the date it converts from a C corporation to
an S corporation (or acquires timber property from a C corporation in a transaction to
which § 1374(d)(8) applies) and during the
recognition period (a) cuts the timber and
sells resulting wood products (including any
unfinished or finished products derived,
manufactured, or produced from such products) in a transaction to which § 631 does not
apply, (b) recognizes gain or loss on cutting
the timber pursuant to a § 631(a) election, or
(c) recognizes gain or loss on the disposal of
timber under a contract to which § 631(b)
applies, and (2) an S corporation holds coal
or domestic iron ore property on the date it
converts from a C corporation to an S corporation (or acquires coal or domestic iron ore
property from a C corporation in a transaction to which § 1374(d)(8) applies) and during the recognition period recognizes gain or
loss on the disposal of the coal or iron ore
under a contract to which § 631(c) applies.

113

.28 Section 2503.—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.
.29 Section 2514.—Powers of Appointment.—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.
.30 Section 2601.—Tax Imposed.—
Whether a trust that is excepted from the
application of the generation-skipping
transfer tax because it was irrevocable on
September 25, 1985, will lose its excepted
status if the situs of the trust is changed
from the United States to a situs outside
of the United States.
.31 Sections 3121, 3306, and 3401.—
Definitions; Employment Taxes.—Who is
the employer of an “employee-owner” as
defined in § 269A(b)(2).
.32 Sections 3121, 3306, and 3401.—
Definitions; Employment Taxes.—Who is

January 3, 2000

the employer of employees of an entity
that is disregarded under § 1361(b)(3) or
§ 301.7701–2.
.33 Section 7701.—See section 5.05,
above.
.34 Section 7701.—Definitions.—The
classification of separately tradable instruments that are issued by a corporation
as a unit, the components of which collectively contain the attributes of stock.
SECTION 6. AREAS COVERED BY
AUTOMATIC APPROVAL
PROCEDURES IN WHICH
RULINGS WILL NOT ORDINARILY
BE ISSUED
.01 Section 442.—Change of Annual
Accounting Period.—All situations where
the Service has provided an administrative
procedure for obtaining a change in annual
accounting period. See Rev. Procs. 92–13,
1992–1 C.B. 665, as modified by Rev.
Proc. 94–12, 1994–1 C.B. 565, and as modified and amplified by Rev. Proc. 92–13A,
1992–1 C.B. 668 (certain corporations that
have not changed their accounting period
within the prior 6 calendar years or other
specified time); 87–32, 1987–2 C.B. 396,
as modified by § 301.9100–3 (partnership,
S corporation, or personal service corporation seeking a natural business year or an
ownership taxable year); 68–41, 1968–2
C.B. 943, as modified by Rev. Proc. 81–40,
1981–2 C.B. 604 (trusts held by certain
fiduciaries needing a workload spread); and
66–50, 1966–2 C.B. 1260, as modified by
Rev. Proc. 81–40 (individual seeking a calendar year).
.02 Section 446.—General Rule for
Methods of Accounting.—Except as otherwise provided in the listed revenue procedures, all situations where the Service has
provided an administrative procedure for obtaining a change in method of accounting.
See Rev. Procs. 99–49, 1999–52 I.R.B. 725
(accounting method changes described in
the Appendix to Rev. Proc. 99–49 involving
§§ 56, 162, 167, 168, 171, 174, 197, 263,
263A, 404, 446, 451, 454, 455, 461, 467,
471, 472, 475, 585, 1272, 1273, 1278, and
1281, and former § 168); 98–58, 1998–2
C.B. 712 (certain taxpayers required to
change to the installment method for purposes of computing alternative minimum
taxable income (AMTI) with regard to income from the disposition of § 1221(1)
property); 97–43, 1997–2 C.B. 494 (certain

January 3, 2000

taxpayers required to change their method of
accounting as a result of making elections
out of certain exemptions from dealer status
for purposes of § 475); 92–67, 1992–2 C.B.
429 (certain taxpayers with one or more
market discount bonds seeking to make a §
1278(b) election or a constant interest rate
election); 92–29, 1992–1 C.B. 748 (certain
taxpayers seeking to use an alternative
method under § 461(h) for including common improvement costs in basis); and
91–51, 1991–2 C.B. 779 (certain taxpayers
seeking to change their method of accounting for sales of mortgage loans from a
method that does not comply with § 1286).
.03 Section 461.—General Rule for
Taxable Year of Deduction.—All situations where the Service has provided an
administrative procedure for making or revoking an election under § 461. See Rev.
Procs. 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); and 92–28, 1992–1 C.B.
745, as amplified by Rev. Proc. 94–32,
1994–1 C.B. 627 (dealing with ratable accrual of real property taxes).
.04 Section 1362.—Election; Revocation; Termination.—All situations in
which an S corporation qualifies for automatic late S corporation relief under Rev.
Proc. 97–48, 1997–2 C.B. 521, or for automatic inadvertent termination or inadvertent invalid election relief under section 6 of Rev. Proc. 98–55.
.05 Sections 1502, 1504, and 1552.—
Regulations; Definitions; Earnings and Profits.—All situations where the Service has
provided an administrative procedure for obtaining waivers or consents on consolidated
return issues. See Rev. Procs. 90–53,
1990–2 C.B. 636 (certain corporations seeking reconsolidation within the 5-year period
specified in § 1504(a)(3)(A)); 90–39,
1990–2 C.B. 365 (certain affiliated groups of
corporations 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 liability); and 89–56, 1989–2 C.B. 643 (certain
affiliated groups of corporations seeking to
file a consolidated return where member(s)
of the group use a 52–53 week taxable year).
SECTION 7. EFFECT ON OTHER
REVENUE PROCEDURES

114

Rev. Procs. 99–3 and 99–51 are superseded.
SECTION 8. EFFECTIVE DATE
This revenue procedure is effective
January 10, 2000.
SECTION 9. 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 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 3.01(22),
(23), (24), (26), and (27), 3.02(1) and (3),
4.01(27) and (33), and 4.02(1) and (7)(b).
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 letter. The likely respondents are business
or other for-profit institutions.
The estimated total annual reporting
and/or recording burden is 90 hours.
The estimated annual burden per respondent/recordkeeper varies from 15 minutes to
3 hours, depending on individual circumstances, with an estimated average burden of
2 hours. The estimated number of respondents and/or recordkeepers is 45.
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection of information must be retained as
long as their contents may become material in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by § 6103.
DRAFTING INFORMATION
The principal author of this revenue procedure is Michael Danbury of the Office of
Assistant Chief Counsel (Corporate). For
further information about this revenue procedure, please contact Mr. Danbury at

2000–1 I.R.B.

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2000–4
TABLE OF CONTENTS
SECTION 1. WHAT IS
THE PURPOSE OF THIS
REVENUE PROCEDURE?

p. 120

SECTION 2. WHAT CHANGES
HAVE BEEN MADE TO
REV. PROC. 99–4?

p. 120

SECTION 3. IN WHAT
FORM IS GUIDANCE
PROVIDED BY THE
COMMISSIONER, TAX EXEMPT
AND GOVERNMENT ENTITIES
DIVISION?

p. 120

.01 In general
.02 Letter ruling
.03 Closing agreement
.04 Determination letter
.05 Opinion letter
.06 Information letter
.07 Revenue ruling
.08 Oral guidance
(1) No oral rulings, and no written rulings in response to oral requests
(2) Discussion possible on substantive issues
.09 Nonbank trustee requests

SECTION 4. ON WHAT
ISSUES MAY TAXPAYERS
REQUEST WRITTEN
GUIDANCE UNDER THIS
PROCEDURE?

p. 123

SECTION 5. ON WHAT
ISSUES MUST WRITTEN
GUIDANCE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?

p. 123

.01 Determination letters
.02 Master and prototype plans
.03 Closing agreement program for defined contribution plans that purchased
GICs or GACs
.04 Voluntary Compliance Resolution Program
.05 Chief Counsel
.06 Alcohol, tobacco, and firearms taxes

SECTION 6. UNDER WHAT
CIRCUMSTANCES DOES
THE TE/GE
ISSUE LETTER RULINGS?

p. 123

.01 In exempt organizations matters
.02 In employee plans matters
.03 In qualifications matters
.04 Request for extension of time for making an election or for other relief

2000–1 I.R.B.

115

January 3, 2000

under § 301.9100–1 of the Procedure and Administration Regulations
.05 Issuance of a letter ruling before the issuance of a regulation or other published guidance
.06 Issues in prior return
.07 Generally not to business associations or groups
.08 Generally not to foreign governments
.09 Generally not on federal tax consequences of proposed legislation
SECTION 7. UNDER WHAT
CIRCUMSTANCES DOES
TE/GE ISSUE
DETERMINATION LETTERS?

p. 126

.01 Circumstances under which determination letters are issued
.02 In general
.03 In employee plans matters
.04 In exempt organizations matters
.05 Circumstances under which determination letters are not issued
.06 Requests involving returns already filed
.07 Attach a copy of determination letter to taxpayer’s return
.08 Review of determination letters

SECTION 8. UNDER
WHAT CIRCUMSTANCES
DOES THE SERVICE HAVE
DISCRETION TO ISSUE
LETTER RULINGS AND
DETERMINATION LETTERS?

p. 128

.01 Ordinarily not in certain areas because of factual nature of the problem
.02 Not on alternative plans or hypothetical situations
.03 Ordinarily not on part of an integrated transaction
.04 Not on partial terminations of employee plans
.05 Law requires letter ruling
.06 Issues under consideration by PBGC or DOL
.07 Cafeteria plans
.08 Determination letters
.09 Domicile in a foreign jurisdiction
.10 Employee Stock Ownership Plans

SECTION 9. WHAT ARE THE
GENERAL INSTRUCTIONS
FOR REQUESTING LETTER
RULINGS AND
DETERMINATION LETTERS?

p. 129

.01 In general
.02 Certain information required in all requests
(1) Complete statement of facts and other information
(2) Copies of all contracts, wills, deeds, agreements, instruments, plan documents, and other documents

January 3, 2000

116

2000–1 I.R.B.

(3) Analysis of material facts
(4) Statement regarding whether same issue is in an earlier return
(5) Statement regarding whether same or similar issue was previously ruled
on or requested, or is currently pending
(6) Statement of supporting authorities
(7) Statement of contrary authorities
(8) Statement identifying pending legislation
(9) Statement identifying information to be deleted from copy of letter ruling or determination letter for public inspection
(10) Signature by taxpayer or authorized representative
(11) Authorized representatives
(12) Power of attorney and declaration of representative
(13) Penalties of perjury statement
(14) Applicable user fee
(15) Number of copies of request to be submitted
(16) Sample format for a letter ruling request
(17) Checklist for letter ruling requests
.03 Additional information required in certain circumstances
(1) To request separate letter rulings for multiple issues in a single situation
(2) To designate recipient of original or copy of letter ruling or determination letter
(3) To request expeditious handling
(4) To receive a letter ruling or submit a request for a letter ruling by facsimile transmission (fax)
(5) To request a conference
.04 Address to send the request
(1) Requests for letter rulings
(2) Requests for information letters
(3) Requests for determination letters
(4) Summary of Exempt Organizations Fees
.05 Pending letter ruling requests
.06 When to attach letter ruling to return

2000–1 I.R.B.

117

January 3, 2000

.07 How to check on status of request
.08 Request may be withdrawn or EP or EO Technical may decline to issue letter ruling
.09 Compliance with Treasury Department Circular No. 230
SECTION 10. WHAT SPECIFIC,
ADDITIONAL PROCEDURES
APPLY TO CERTAIN
REQUESTS?

p. 140

.01 In general
.02 Exempt Organizations
.03 Employee Plans

SECTION 11. HOW DOES
TE/GE HANDLE
LETTER RULING REQUESTS?

p. 141

.01 In general
.02 Is not bound by informal opinion expressed
.03 Tells taxpayer if request lacks essential information during initial contact
.04 Requires prompt submission of additional information requested after initial
contact
.05 Near the completion of the ruling process, advises taxpayer of conclusions
and, if the Service will rule adversely, offers the taxpayer the opportunity to
withdraw the letter ruling request
.06 May request draft of proposed letter ruling near the completion of the ruling
process

SECTION 12. HOW ARE
CONFERENCES SCHEDULED?

p. 143

.01 Schedules a conference if requested by taxpayer
.02 Permits taxpayer one conference of right
.03 Disallows verbatim recording of conferences
.04 Makes tentative recommendations on substantive issues
.05 May offer additional conferences
.06 Requires written confirmation of information presented at conference
.07 May schedule a pre-submission conference
.08 Under limited circumstances, may schedule a conference to be held by telephone

SECTION 13. WHAT EFFECT
WILL A LETTER RULING
HAVE?

p. 145

.01 May be relied on subject to limitations
.02 Will not apply to another taxpayer
.03 Will be used by TE/GE in examining the taxpayer’s return
.04 May be revoked or modified if found to be in error
.05 Not generally revoked or modified retroactively
.06 Retroactive effect of revocation or modification applied to a particular transaction
.07 Retroactive effect of revocation or modification applied to a continuing ac-

January 3, 2000

118

2000–1 I.R.B.

tion or series of actions
.08 May be retroactively revoked or modified when transaction is completed
without reliance on the letter ruling
.09 Taxpayer may request that retroactivity be limited
(1) Request for relief under § 7805(b) must be made in required format
(2) Taxpayer may request a conference on application of § 7805(b)
SECTION 14. WHAT EFFECT
WILL A DETERMINATION
LETTER HAVE?

p. 148

.01 Has same effect as a letter ruling
.02 Taxpayer may request that retroactive effect of revocation or modification
be limited
(1) Request for relief under § 7805(b) must be made in required format
(2) Taxpayer may request a conference on application of § 7805(b)
(3) Taxpayer steps in exhausting administrative remedies

SECTION 15. UNDER WHAT
CIRCUMSTANCES ARE
MATTERS REFERRED
BETWEEN DETERMINATIONS
AND TECHNICAL?

p. 149

SECTION 16. WHAT ARE
THE GENERAL PROCEDURES
APPLICABLE TO INFORMATION
LETTERS ISSUED BY
THE SERVICE?

p. 149

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

p. 150

SECTION 18.
EFFECTIVE DATE

p. 150

SECTION 19. PAPERWORK
REDUCTION ACT

p. 150

DRAFTING INFORMATION

p. 151

INDEX

p. 152

APPENDIX A—SAMPLE
FORMAT FOR A LETTER
RULING REQUEST

p. 153

APPENDIX B—CHECKLIST
FOR A LETTER RULING
REQUEST

p. 155

2000–1 I.R.B.

.01 Requests for determination letters
.02 No-rule areas
.03 Requests for letter rulings
.01 Will be made available to the public
.02 Deletions made under the Freedom of Information Act
.03 Effect of information letters

119

January 3, 2000

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

This revenue procedure explains how the Internal Revenue Service gives guidance to
taxpayers on issues under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division. It explains the kinds of guidance and the manner in which
guidance is requested by taxpayers and provided by the Service. A sample format of a request for a letter ruling is provided in Appendix A.

SECTION 2. WHAT CHANGES
HAVE BEEN MADE TO
REV. PROC. 99–4?

.01 This revenue procedure is a general update of Rev. Proc. 99–4, 1999–1 I.R.B. 115,
which contains the Service’s general procedures for employee plans and exempt organizations letter ruling requests.
Most of the changes to Rev. Proc. 99–4 involve minor revisions, such as updating citations
to other revenue procedures.
.02 The procedure has been revised to reflect the reorganization of the Service and the creation
of the new Tax Exempt and Government Entities Division (TE/GE). Throughout the procedure,
titles have been changed to reflect the realignment of responsibilities formerly under the Assistant Commissioner (Employee Plans and Exempt Organizations) to the Commissioner, TE/GE.
.03 References to Rev. Proc. 99–31, 1999–34 I.R.B. 280, which clarifies and supplements
the consolidated compliance procedure, Rev. Proc. 98–22, 1998–12 I.R.B. 11, are added.
.04 A new section 16 is added to provide that information letters that are issued by the
Service to members of the public will be made available to the public. Before being made
available to the public, the Service will delete any name, address, and other taxpayer identifying information as appropriate under the Freedom of Information Act.

SECTION 3. IN WHAT
FORM IS GUIDANCE
PROVIDED BY THE
COMMISSIONER, TAX EXEMPT
AND GOVERNMENT ENTITIES
DIVISION?
In general

.01 The Service provides guidance in the form of letter rulings, closing agreements, determination letters, opinion letters, notification letters, information letters, revenue rulings,
and oral advice.

Letter ruling

.02 A “letter ruling” is a written statement issued to a taxpayer by the Service’s Employee Plans Technical or Exempt Organizations Technical offices that interprets and applies the tax laws or any nontax laws applicable to employee benefit plans and exempt organizations to the taxpayer’s specific set of facts. Once issued, a letter ruling may be
revoked or modified for any number of reasons, as explained in section 13 of this revenue
procedure, unless it is accompanied by a “closing agreement.”

Closing agreement

.03 A closing agreement is a final agreement between the Service and a taxpayer on a
specific issue or liability. It is entered into under the authority in § 7121 and is final unless
fraud, malfeasance, or misrepresentation of a material fact can be shown.
A closing agreement prepared in an office under the responsibility of the Commissioner,
TE/GE, may be based on a ruling that has been signed by the Commissioner, TE/GE, or
the Commissioner, TE/GE’s, delegate that says that a closing agreement will be entered
into on the basis of the ruling letter.
A closing agreement may be entered into when it is advantageous to have the matter permanently and conclusively closed, or when a taxpayer can show that there are good reasons for an agreement and that making the agreement will not prejudice the interests of the
Government. In appropriate cases, taxpayers may be asked to enter into a closing agreement as a condition to the issuance of a letter ruling.

January 3, 2000

120

2000–1 I.R.B.

If, in a single case, a closing agreement is requested for each person in a class of taxpayers, separate agreements are entered into only if the class consists of 25 or fewer taxpayers. However, if the issue and holding are identical for the class and there are more than
25 taxpayers in the class, a “mass closing agreement” will be entered into with the taxpayer who is authorized by the others to represent the class.
In appropriate cases, a closing agreement may be made with sponsors of master and prototype plans and sponsors of regional prototype plans.
Rev. Proc. 98–22, 1998–12 I.R.B. 11, establishes a voluntary closing agreement program for
employee plans matters. The revenue procedure contains a formula for determining monetary
sanctions and limits the sanction for employers who voluntarily enter the program.
Determination letter

.04 A “determination letter” is a written statement issued by the Director, Employee
Plans Rulings and Agreements, or the Director, Exempt Organizations Rulings and Agreements, that applies the principles and precedents previously announced to a specific set of
facts. It is issued only when a determination can be made based on clearly established
rules in the statute, a tax treaty, or the regulations, or based on a conclusion in a revenue
ruling, opinion, or court decision published in the Internal Revenue Bulletin that specifically answers the questions presented.
The Director, Employee Plans Rulings and Agreements, issues determination letters involving §§ 401, 403(a), 409, and 4975(e)(7) as provided in Rev. Proc. 2000–6, page 187 in
this Bulletin.

Opinion letter

.05 An “opinion letter” is a written statement issued by the Director, Employee Plans
Rulings and Agreements, to a sponsoring organization as to the acceptability (for purposes
of §§ 401 and 501(a)) of the form of a master or prototype plan and any related trust or
custodial account under §§ 401, 403(a), and 501(a), or as to the conformance of a prototype trust, custodial account, or individual annuity with the requirements of § 408(a), (b),
or (k), as applicable. See Rev. Proc. 89–9, 1989–1 C.B. 780, as modified by Rev. Proc.
90–21, 1990–1 C.B. 499, Rev. Proc. 92–41, 1992–1 C.B. 870, and Rev. Proc. 93–12,
1993–1 C.B. 479. See also Rev. Proc. 91–44, 1991–2 C.B. 733, and Rev. Proc. 92–38,
1992–1 C.B. 859.

Information letter

.06 An “information letter” is a statement issued either by the Director, Employuee Plans Rulings and Agreements, or the Director, Exempt Organizations Rulings and Agreements. It calls
attention to a well-established interpretation or principle of tax law (including a tax treaty)
without applying it to a specific set of facts. To the extent resources permit, an information letter may be issued if the taxpayer’s inquiry indicates a need for general information or if the taxpayer’s request does not meet the requirements of this revenue procedure and the Service
thinks general information will help the taxpayer. The taxpayer should provide a daytime telephone number with the taxpayer’s request for an information letter. Requests for information
letters should be sent to the address stated in section 9.04(2) of this revenue procedure. The requirements of section 9.02 of this revenue procedure are not applicable to information letters.
An information letter is advisory only and has no binding effect on the Service.

Revenue ruling

.07 A “revenue ruling” is an interpretation by the Service that has been published in the
Internal Revenue Bulletin. It is the conclusion of the Service on how the law is applied to
a specific set of facts. Revenue rulings are published for the information and guidance of
taxpayers, Service personnel, and other interested parties.
Because each revenue ruling represents the conclusion of the Service regarding the application of law to the entire statement of facts involved, taxpayers, Service personnel, and other
concerned parties are cautioned against reaching the same conclusion in other cases unless the
facts and circumstances are substantially the same. They should consider the effect of subsequent legislation, regulations, court decisions, revenue rulings, notices, and announcements.
See Rev. Proc. 89–14, 1989–1 C.B. 814, which states the objectives of and standards for the
publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin.

2000–1 I.R.B.

121

January 3, 2000

Oral guidance

.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. However, Service employees ordinarily will discuss with taxpayers or their representatives inquiries regarding whether the Service will rule on particular issues and questions relating
to procedural matters about submitting requests for letter rulings, determination letters,
and 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, substantive issues may also be discussed. However, such a discussion will not be binding on the Service, and cannot be relied on as a basis for obtaining retroactive relief under the provisions of § 7805(b).
Substantive tax issues involving the taxpayer that are under examination, in appeals, or in
litigation will not be discussed by Service employees not directly involved in the examination, appeal, or litigation of the issues unless the discussion is coordinated with those Service employees who are directly involved in the examination, appeal, or litigation of the
issues. The taxpayer or the taxpayer’s representative ordinarily will be asked whether the
oral request for guidance or information relates to a matter pending before another office
of the Service.
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
TE/GE Customer Account Services when preparing a return or report. Oral guidance is
advisory only, and the Service is not bound to recognize it, for example, in the examination of the taxpayer’s return.
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 confirmation of the substance of
the letter.

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 an educational IRA established under § 530 or a medical savings account established under § 220, a written application must be filed that demonstrates how the applicant
complies with the requirements of § 1.408–2(e)(2) through (5) of the Income Tax Regulations.
The Service must have clear and convincing proof in its files that the requirements of the
regulations are met. If there is a requirement that the applicant feels is not applicable, the
application must provide clear and convincing proof that such requirement is not germane
to the manner in which the applicant will administer any trust. See § 1.408–2(e)(6).
The completed application should be sent to:
Internal Revenue Service
Commissioner, Tax Exempt and Government Entities Division
Attention: T:EP:RA
P.O. Box 14073, Ben Franklin Station
Washington, DC 20044

January 3, 2000

122

2000–1 I.R.B.

Section 6.01(4) of Rev. Proc. 99–8, page 230 in this Bulletin imposes a user’s fee for
anyone applying for approval to become a nonbank trustee or custodian.
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 rulings to
answer written inquiries of individuals and organizations about their status for tax
purposes and the tax effects of their acts or transactions when appropriate in the interest of
sound tax administration.
Taxpayers also may request determination letters that relate to Code sections under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. See
Rev. Proc. 2000–6 in this Bulletin.

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 for exemption of any related trusts or custodial accounts
under § 501(a) are contained in Rev. Proc. 99–6, this Bulletin, Rev. Proc. 93–10 and Rev.
Proc. 93–12.

Master and prototype 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) are contained in
Rev. Proc. 89–9, as modified by Rev. Proc. 90–21, Rev. Proc. 92–41, Rev. Proc. 93–12,
sections 12 and 13 of Rev. Proc. 93–39, and supplemented by Rev. Proc. 93–10. The procedures for obtaining opinion letters for prototype trusts, custodial accounts or annuities
under § 408(a) or (b) are contained in Rev. Proc. 87–50, as modified by Rev. Proc. 92–38.
The procedures for obtaining opinion letters for prototype trusts under § 408(k) are contained in Rev. Proc. 87–50, as modified by Rev. Proc. 91–44 (as modified by Rev. Proc.
2000–8). The procedures for obtaining opinion letters for SIMPLE IRAs under § 408(p)
are contained in Rev. Proc. 97–29, 1997–1 C.B. 698.

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
investment contracts (GICs) or group annuity contracts (GACs) from troubled life insurance companies.

Voluntary Compliance
Resolution Program

.04 The procedures for obtaining corrections of operational qualification plan defects
under the Voluntary Compliance Resolution (VCR) Program are contained in Rev. Procs.
98–22 and 99–31.

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. 2000–1,
page 4 in 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 Bureau of Alcohol, Tobacco and Firearms.

SECTION 6. UNDER WHAT
CIRCUMSTANCES DOES
THE SERVICE ISSUE
LETTER RULINGS?

2000–1 I.R.B.

123

January 3, 2000

In exempt organizations
matters

.01 In exempt organizations matters, the Exempt Organizations Technical Office issues
letter rulings on proposed transactions and on completed transactions if the request is submitted before the return is filed for the year in which the transaction that is the subject of
the request was completed. The Exempt Organizations Technical Office 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 state tuition programs described in § 529;
(5) Trusts described in § 4947(a);
(6) Welfare benefit plans described in § 4976; and
(7) Other matters including issues under §§ 501 through 514, 4911, 4912, 4940 through
4948, 4955, 4958, 6033, 6104, 6113, and 6115.

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. The Employee Plans Technical Office issues letter rulings involving:
(1) §§ 72, 101(d), 219, 381(c)(11), 402, 403(b), 404, 412, 414(d), 414(e), 419, 419A,
511 through 514, 4971, 4972, 4973, 4974, 4978, 4979, 4980, and 4980A;
(2) Waiver of the minimum funding standard (See Rev. Proc. 94–41, 1994–1 C.B. 711),
and changes in funding methods and actuarial assumptions under § 412(c)(5);
(3) Waiver of the liquidity shortfall (as that term is defined in § 412(m)(5)) excise tax
under § 4971(f)(4) as added by § 1464 of the Small Business Job Protection Act of 1996;
(4) Whether a plan amendment is reasonable and provides for only de minimis increases
in plan liabilities in accordance with §§ 401(a)(33) and 412(f)(2)(A) of the Code (See Rev.
Proc. 79–62, 1979–2 C.B. 576);
(5) A change in the plan year of an employee retirement plan and the trust year of a taxexempt employees’ trust (See Rev. Proc. 87–27, 1987–1 C.B. 769);
(6) The tax consequences of prohibited transactions under §§ 503 and 4975;
(7) Whether individual retirement accounts established by employers or associations of
employees meet the requirements of § 408(c) (See Rev. Proc. 87–50, as modified by Rev.
Proc. 91–44 (as modified by Rev. Proc. 2000–8) and Rev. Proc. 92–38);
(8) With respect to employee stock ownership plans and tax credit employee stock ownership 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.
(9) Where the Commissioner, Tax Exempt and Government Entities Division has authority to grant extensions of certain periods of time within which the taxpayer must perform
certain transactions (for example, the 90-day period for reinvesting in employer securities
under § 1.46–8(e)(10) of the regulations), the taxpayer’s request for an extension of such
time period must be postmarked (or received, if hand delivered to the 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

January 3, 2000

124

2000–1 I.R.B.

of this period. However, see section 6.04 below with respect to elections under §
301.9100–1 of the Procedure and Administration Regulations.
In qualifications matters

.03 The Employee Plans Technical Office ordinarily will not issue letter rulings on matters involving a plan’s qualified status under §§ 401 through 420 and § 4975(e)(7). These
matters are generally handled by the Employee Plans Determinations program as provided
in Rev. Proc. 2000–6 in 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, rulings 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 the issues in the return are being considered by an appeals office or a federal court. In such a case, EP or EO
Technical will notify the Director, EP or EO Examinations.
Except for those requests pertaining to applications for recognition of exemption,
§ 301.9100–1 requests, even those submitted after the examination of the taxpayer’s return has begun, are letter ruling requests and therefore should be submitted pursuant to this
revenue procedure, and require payment of the applicable user fee, referenced in section
9.02(14) of this revenue procedure. In addition, the taxpayer must include the information
required by § 301.9100–3(e).
However, an election made pursuant to § 301.9100–2 is not a letter ruling and does not
require payment of any user fee. See § 301.9100–2(d). Such an election pertains to an automatic extension of time under § 301.9100–1.

Issuance of a letter ruling
before the issuance of a
regulation or other
published guidance

.05 Unless the issue is covered by section 8 of this procedure, a letter ruling may be
issued before the issuance of a temporary or final regulation or other published guidance
that interprets the provisions of any act under the following conditions:

(1) Answer is clear or is reasonably certain. If the letter ruling request presents an
issue for which the answer seems clear by applying the statute to the facts or for which the
answer seems reasonably certain but not entirely free from doubt, a letter ruling will be issued.
(2) Answer is not reasonably certain. The Service will consider all letter ruling requests and use its best efforts to issue a letter ruling even if the answer does not seem reasonably certain where the issuance of a letter ruling is in the best interest of tax administration.
(3) Issue cannot be readily resolved before a regulation or any other published
guidance is issued. A letter ruling will not be issued if the letter ruling request presents an
issue that cannot be readily resolved before a regulation or any other published guidance is
issued.
Issues in prior return

2000–1 I.R.B.

.06 The Service ordinarily does not issue rulings if, at the time the ruling is requested,
the identical issue is involved in the taxpayer’s return for an earlier period, and that
issue—

125

January 3, 2000

(1) is being examined by the Director, EP or EO Examinations,
(2) is being considered by an appeals office,
(3) is pending in litigation in a case involving the taxpayer or related taxpayer, or
(4) has been examined by the Director, EP or EO Examinations or considered by an appeals office, and the statutory period of limitation has not expired for either assessment or
filing a claim for a refund or a closing agreement covering the issue of liability has not been
entered into by the Director, EP or EO Rulings and Agreements or by an appeals office..
If a return dealing with an issue for a particular year is filed while a request for a ruling
on that issue is pending, EP or EO Technical will issue the ruling unless it is notified by
the taxpayer that an examination of that issue or the identical issue on an earlier year’s return has been started by the Director, EP or EO Examinations. See section 9.05. However,
even if an examination has begun, EP or EO Technical ordinarily will issue the letter ruling if the Director, EP or EO Examinations agrees, by memorandum, to permit the ruling
to be issued.
Generally not to business
associations or groups

.07 EP or EO Technical does not issue letter rulings to business, trade, or industrial as
sociations or to similar groups concerning the application of the tax laws to members of
the group. But groups and associations may submit suggestions of generic issues that
would be appropriately addressed in revenue rulings. See Rev. Proc. 89–14, which states
objectives of, and standards for, the publication of revenue rulings and revenue procedures
in the Internal Revenue Bulletin.
EP or EO Technical, however, may issue letter rulings to groups or associations on their
own tax status or liability if the request meets the requirements of this revenue procedure.

Generally not to
foreign governments

.08 EP or EO Technical does not issue letter rulings to foreign governments or their
political subdivisions about the U.S. tax effects of their laws. However, EP or EO Technical may issue letter rulings to foreign governments or their political subdivisions on their
own tax status or liability under U.S. law if the request meets the requirements of this revenue procedure.

Generally not on federal tax
consequences of proposed
legislation

.09 EP or EO Technical does not issue letter rulings on a matter involving the federal tax
consequences of any proposed federal, state, local, municipal, or foreign legislation.
EP or EO Technical, however, may provide general information in response to an inquiry.

SECTION 7. UNDER WHAT
CIRCUMSTANCES DOES
THE EP OR EO
DETERMINATIONS ISSUE
DETERMINATION
LETTERS?
Circumstances under
which determination letters
are issued

.01 Employee Plans or Exempt Organizations Determinations issues determination
letters only if the question presented is specifically answered by a statute, tax treaty, or regulation, or by a conclusion stated in a revenue ruling, opinion, or court decision published in the
Internal Revenue Bulletin.

In general

.02 In employee plans and exempt organizations matters, the EP or EO Determinations
office issues determination letters in response to taxpayers’ written requests on completed
transactions that affect returns over which they have examination jurisdiction. 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.

January 3, 2000

126

2000–1 I.R.B.

In situations involving continuing transactions, such as whether an ongoing activity is an
unrelated trade or business, EP or EO Technical would issue a ruling covering future tax
periods and periods for which a return had not yet been filed.
EP or EO Determinations does not issue determination letters on the tax consequences of
proposed transactions, except as provided in sections 7.03 and 7.04 below.
In employee plans matters

.03 In employee plans matters, the Employee Plans Determinations office issues determination letters on the qualified status of employee plans under §§ 401, 403(a), 409 and
4975(e)(7), and the exempt status of any related trust under § 501. See Rev. Proc. 2000–6,
this Bulletin, Rev. Proc. 93–10 and Rev. Proc. 93–12.

In exempt organizations
matters

.04 In exempt organizations matters, the Exempt Organizations Determinations office
issues determination letters involving:
(1) Qualification for exempt status of organizations described in §§ 501 and 521 to the
extent provided in Rev. Proc. 90–27, 1990–1 C.B. 514, as modified by Rev. Proc.2000–8;
(2) Classification of private foundation status as provided in Rev. Proc. 76–34, 1976–2
C.B. 656;
(3) Recognition of unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and
509(a)(2);
(4) Requests for relief under § 301.9100–1 of the Procedure and Administration Regulations in connection with applications for recognition of exemption;
(5) Advance approval under § 4945 of organizations’ grant making procedures whose
determination letter requests or applications disclose (or who have otherwise properly disclosed) a grant program or plans to conduct such a program. If questions arise regarding
grant-making procedures that cannot be resolved on the basis of law, regulations, a clearly
applicable revenue ruling, or other published precedent, EO Determinations will forward
the matter to EO Technical for technical advice;
(6) Whether certain organizations are excepted from filing annual information returns
under § 6033 as provided in Rev. Procs. 83–23, 1983–1 C.B. 687, 86–23, 1986–1 C.B.
564, and 95–48, 1995–2 C.B. 418;
(7) Whether certain organizations qualify as exempt operating foundations described in
§ 4940(d); and
(8) Advance approval of voter registration activities described in § 4945(f).

Circumstances under which
determination letters are
not issued

.05 EP or EO Determinations will not issue a determination letter in response to any
request if—
(1) it appears that the taxpayer has directed a similar inquiry to EP or EO Technical;
(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case
in litigation or before an appeals office;
(3) the determination letter is requested by an industry, trade association, or similar
group on behalf of individual taxpayers within the group (other than subordinate organizations covered by a group exemption letter); or
(4) the request involves an industry-wide problem..

2000–1 I.R.B.

127

January 3, 2000

Under no circumstances will EP or EO 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.
Requests involving
returns already filed

.06 A request received by the Service on a question concerning a return that is under
examination, will be, in general, considered in connection with the examination of the return. If a response is made to the request before the return is examined, it will be considered a tentative finding in any later examination of that return.

Attach a copy of
determination letter to
taxpayer’s return

.07 A taxpayer who, before filing a return, receives a determination letter about any
transaction that has been consummated and that is relevant to the return being filed should
attach a copy of the determination letter to the return when it is filed.

Review of determination
letters

.08 Determination letters issued under sections 7.02 through 7.04 of this revenue
procedure are not reviewed by EP or EO Technical before they are issued. If a taxpayer
believes that a determination letter of this type is in error, the taxpayer may ask EP or EO
Determinations to reconsider the matter or to request technical advice from EP or EO
Technical as explained in Rev. Proc. 2000–5, page 158, 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. 2000–6, Rev. Proc. 93–10 and Rev. Proc. 93–12.
(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. 90–27, as modified by Rev. Proc. 2000–8.

SECTION 8. UNDER
WHAT CIRCUMSTANCES
DOES THE SERVICE HAVE
DISCRETION TO ISSUE
LETTER RULINGS AND
DETERMINATION LETTERS?
Ordinarily not in certain areas
because of factual nature
of the problem

.01 The Service ordinarily will not issue a letter ruling or determination letter in certain
areas because of the factual nature of the problem involved or because of other reasons.
The Service may decline to issue a letter ruling or a determination letter when appropriate
in the interest of sound tax administration or on other grounds whenever warranted by the
facts or circumstances of a particular case.
Instead of issuing a letter ruling or determination letter, 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

.02 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

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

Not on partial terminations
of employee plans

.04 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

January 3, 2000

The Service will issue rulings on prospective or future transactions if the law or regula-

128

2000–1 I.R.B.

tions require a determination of the effect of a proposed transaction for tax purposes.
Issues under consideration
by PBGC or DOL

.06 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

.07 The Service does not issue letter rulings or determination letters on whether a cafeteria plan satisfies the requirements of § 125. See also Rev. Proc. 2000–3, also in this Bulletin, for areas under the jurisdiction of the Associate Chief Counsel (Domestic) involving
cafeteria plans in which advance rulings or determination letters will not be issued.

Determination letters

.08 See section 3.02 of Rev. Proc. 2000–6 for employee plans matters on which determination letters will not be issued.

Domicile in a foreign
jurisdiction

.09
(1) The Service is ordinarily unwilling to rule in situations where a taxpayer or a related
party is domiciled or organized in a foreign jurisdiction with which the United States does
not have an effective mechanism for obtaining tax information with respect to civil tax examinations and criminal investigations, which would preclude the Service from obtaining
information located in such jurisdiction that is relevant to the analysis or examination of
the tax issues involved in the ruling request.
(2) The provisions of subsection 8.09(1) above shall not apply if the taxpayer or affected
related party (a) consents to the disclosure of all relevant information requested by the
Service in processing the ruling request or in the course of an examination to verify the accuracy of the representations made and to otherwise analyze or examine the tax issues involved in the ruling request, and (b) waives all claims to protection of bank or commercial
secrecy laws in the foreign jurisdiction with respect to the information requested by the
Service. In the event the taxpayer’s or related party’s consent to disclose relevant information or to waive protection of bank or commercial secrecy is determined by the Service
to be ineffective or of no force and effect, then the Service may retroactively rescind any
ruling rendered in reliance on such consent.

Employee Stock
Ownership Plans

.10 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.

SECTION 9. WHAT ARE
THE GENERAL
INSTRUCTIONS FOR
REQUESTING LETTER
RULINGS AND
DETERMINATION
LETTERS?
In general

.01 This section explains the general instructions for requesting letter rulings and determination letters on all matters. Requests for letter rulings and determination letters require the payment of the applicable user fee discussed in section 9.02(14) of this revenue procedure.
Specific and additional instructions also apply to requests for letter rulings and determination letters on certain matters. Those matters are listed in section 10 of this revenue procedure followed by a reference (usually to another revenue procedure) where more information can be obtained.

Certain information
required in all requests

2000–1 I.R.B.

.02

129

January 3, 2000

Facts

(1) Complete statement of facts and other information. Each request for a letter ruling or a determination letter must contain a complete statement of all facts relating to the
transaction. These facts include—
(a) names, addresses, telephone numbers, and taxpayer identification numbers of all interested parties. (The term “all interested parties” does not mean all shareholders of a
widely held corporation requesting a letter ruling relating to a reorganization, or all employees where a large number may be involved.);
(b) 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 8.03 of this revenue procedure. However, if such a letter ruling is requested, the
facts, circumstances, true copies of relevant documents, etc., relating to the entire transaction must be submitted.

Documents

(2) Copies of all contracts, wills, deeds, agreements, instruments, plan documents,
and other documents. True copies of all contracts, wills, deeds, agreements, instruments,
plan documents, trust documents, proposed disclaimers, and other documents pertinent to
the transaction must be submitted with the request.
Each document, other than the request, should be labelled alphabetically and attached to
the request in alphabetical order. 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.

Analysis of material facts

(3) Analysis of material facts. All material facts in documents must be included rather
than merely incorporated by reference, in the taxpayer’s initial request or in supplemental
letters. These facts must be accompanied by an analysis of their bearing on the issue or issues, specifying the provisions that apply.

Same issue in an earlier return

(4) Statement regarding whether same issue is in an earlier return. The request must
state whether, to the best of the knowledge of both the taxpayer and the taxpayer’s representatives, the same issue is in an earlier return of the taxpayer (or in a return for any year
of a related taxpayer within the meaning of § 267, or of a member of an affiliated group of
which the taxpayer is also a member within the meaning of § 1504).
If the statement is affirmative, it must specify whether the issue—
(a) is being examined by the Service;
(b) has been examined and if so, whether or not the statutory period of limitations has
expired for either assessing tax or filing a claim for refund or credit of tax;
(c) has been examined and if so, whether or not a closing agreement covering the issue
or liability has been entered into by the Service;
(d) is being considered by an appeals office in connection with a return from an earlier
period;
(e) has been considered by an appeals office in connection with a return from an earlier
period and if so, whether or not the statutory period of limitations has expired for either
assessing tax or filing a claim for refund or credit of tax;
(f) has been considered by an appeals office in connection with a return from an earlier
period and whether or not a closing agreement covering the issue or liability has been entered into by an appeals office;

January 3, 2000

130

2000–1 I.R.B.

(g) is pending in litigation in a case involving the taxpayer or a related taxpayer; or
(h) in employee plans matters, is being considered by the Pension Benefit Guaranty Corporation or the Department of Labor.
Same or similar issue
previously submitted or
currently pending

(5) Statement regarding whether same or similar issue was previously ruled on or
requested, or is currently pending. The request must also state whether, to the best of
the knowledge of both the taxpayer and the taxpayer’s representatives—
(a) the Service previously ruled on the same or similar issue for the taxpayer (or a related
taxpayer within the meaning of § 267, or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504) or a predecessor;
(b) the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted the same or similar issue to the Service but withdrew the request before a letter ruling or determination letter was issued;
(c) the taxpayer, a related taxpayer, or a predecessor previously submitted a request involving the same or a similar issue that is currently pending with the Service; or
(d) at the same time as this request, the taxpayer or a related taxpayer is presently submitting another request involving the same or a similar issue to the Service.
If the statement is affirmative for (a), (b), (c), or (d) of this section 9.02(5), the statement
must give the date the request was submitted, the date the request was withdrawn or ruled
on, if applicable, and other details of the Service’s consideration of the issue.

Statement of authorities
supporting taxpayer’s views

(6) Statement of supporting authorities. If the taxpayer advocates a particular conclusion, an explanation of the grounds for that conclusion and the relevant authorities to
support it must also be included. Even if not advocating a particular tax treatment of a
proposed transaction, the taxpayer must still furnish views on the tax results of the proposed transaction and a statement of relevant authorities to support those views.
In all events, the request must include a statement of whether the law in connection with
the request is uncertain and whether the issue is adequately addressed by relevant authorities.

Statement of authorities
contrary to taxpayer’s views

(7) Statement of contrary authorities. The taxpayer is also encouraged to inform the
Service about, and discuss the implications of, any authority believed to be contrary to the
position advanced, such as legislation (or pending legislation), tax treaties, court decisions, regulations, revenue rulings, revenue procedures, notices or announcements. If the
taxpayer determines that there are no contrary authorities, a statement in the request to this
effect would be helpful. If the taxpayer does not furnish either contrary authorities or a
statement that none exists, the Service in complex cases or those presenting difficult or
novel issues may request submission of contrary authorities or a statement that none exists. Failure to comply with this request may result in the Service’s refusal to issue a letter
ruling or determination letter.
Identifying and discussing contrary authorities will generally enable Service personnel to
understand the issue and relevant authorities more quickly. When Service personnel receive the request, they will have before them the taxpayer’s thinking on the effect and applicability of contrary authorities. This information should make research easier and lead
to earlier action by the Service. If the taxpayer does not disclose and distinguish significant contrary authorities, the Service may need to request additional information, which
will delay action on the request.

Statement identifying

2000–1 I.R.B.

(8) Statement identifying pending legislation. At the time of filing the request, the

131

January 3, 2000

pending legislation

taxpayer must identify any pending legislation that may affect the proposed transaction.
In addition, if applicable legislation is introduced after the request is filed but before a letter ruling or determination letter is issued, the taxpayer must notify the Service.

Deletions statement
required by § 6110

(9) Statement identifying information to be deleted from copy of letter ruling or
determination letter for public inspection. The text of certain letter rulings and determination letters is open to public inspection under § 6110. The Service makes deletions from
the text before it is made available for inspection. To help the Service make the deletions
required by § 6110(c), a request for a letter ruling or determination letter must be accompanied by a statement indicating the deletions desired (“deletions statement”). If the deletions statement is not submitted with the request, a Service representative will tell the taxpayer that the request will be closed if the Service does not receive the deletions statement
within 30 calendar days. See section 11.03 of this revenue procedure.
(a) Format of deletions statement. A taxpayer who wants only names, addresses, and
identifying numbers to be deleted should state this in the deletions statement. If the taxpayer wants more information deleted, the deletion’s statement must be accompanied by a
copy of the request and supporting documents on which the taxpayer should bracket the
material to be deleted. The deletions statement must indicate the statutory basis under §
6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or determination letter is issued, additional deletions statements may be submitted.
(b) Location of deletions statement. The deletions statement must not appear in the request, but instead must be made in a separate document and placed on top of the request
for a letter ruling or determination letter.
(c) Signature. The deletions statement must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature is not permitted.
(d) Additional information. The taxpayer should follow the same procedures above to
propose deletions from any additional information submitted after the initial request. An
additional deletions statement, however, is not required with each submission of additional information if the taxpayer’s initial deletions statement requests that only names,
addresses, and identifying numbers are to be deleted and the taxpayer wants only the same
information deleted from the additional information.
(e) Taxpayer may protest deletions not made. After receiving from the Service the notice under § 6110(f)(1) of intention to disclose the letter ruling or determination letter (including a copy of the version proposed to be open to public inspection and notation of
third-party communications under § 6110(d)), the taxpayer may protest the disclosure of
certain information in the letter ruling or determination letter. The taxpayer must send a
written statement within 20 calendar days to the Service office indicated on the notice of
intention to disclose. The statement must identify those deletions that the Service has not
made, and that the taxpayer believes should have been made. The taxpayer must also submit a copy of the version of the letter ruling or determination letter and bracket the deletions proposed that have not been made by the Service. Generally, the Service will not
consider deleting any material that the taxpayer did not propose to be deleted before the
letter ruling or determination letter was issued.
Within 20 calendar days after the Service receives the response to the notice under
§
6110(f)(1), the Service will mail to the taxpayer its final administrative conclusion regarding the deletions to be made. The taxpayer does not have the right to a conference to resolve any disagreements concerning material to be deleted from the text of the letter ruling
or determination letter. However, these matters may be taken up at any conference that is
otherwise scheduled regarding the request.

January 3, 2000

132

2000–1 I.R.B.

(f) Taxpayer may request delay of public inspection. After receiving the notice under
§ 6110(f)(1) of intention to disclose, but within 60 calendar days after the date of notice,
the taxpayer may send a request for delay of public inspection under either § 6110(g)(3) or
(4). The request for delay must be sent to the Service office indicated on the notice of intention to disclose. A request for delay under § 6110(g)(3) must contain the date on which
it is expected that the underlying transaction will be completed. The request for delay
under § 6110(g)(4) must contain a statement from which the Commissioner of Internal
Revenue may determine that there are good reasons for the delay.
Section 6110(l)(1) states that § 6110 disclosure provisions do not apply to any matter to
which § 6104 applies. Therefore, letter rulings, determination letters, technical advice
memoranda, and related background file documents dealing with the following matters
(covered by § 6104) are not subject to § 6110 disclosure provisions—
(i) An application for exemption under § 501(a) as an organization described in § 501(c)
or (d), or any application filed with respect to the qualification of a pension, profit-sharing
or stock bonus plan, or an individual retirement account, 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 account;
(ii) Any document issued by the Internal Revenue Service in which the qualification or
exempt status of an organization, plan, or account is granted, denied, or revoked or the
portion of any document in which technical advice with respect thereto is given;
(iii) Any application filed and any document issued by the Internal Revenue Service
with respect to the qualification or status of EP Technical master and prototype plans and
regional prototype plans;
(iv) The portion of any document issued by the Internal Revenue Service with respect to
the qualification or exempt status of an organization, plan, or account, of a proposed transaction by such organizations, plan, or account; and
(v) Any document issued by the Internal Revenue Service in which is discussed the status of an organization under § 509(a) or § 4942(j)(3), other than one issued to a nonexempt
charitable trust described in § 4947(a)(1). This includes documents discussing the termination of private foundation status under § 507.
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. A stamped signature is not permitted.

Authorized representatives

(11) Authorized representatives. To sign the request or to appear before the Service in
connection with the request, the representative must be:

Attorney

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

Certified public accountant

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

Enrolled agent

(c) An enrolled agent 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 sus-

2000–1 I.R.B.

133

January 3, 2000

pension 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 (31 C.F.R. part 10 (1999));
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
under suspension or disbarment from practice before the Service. He or she must file a
written declaration with the Service showing current qualification as an enrolled actuary
and current authorization to represent the taxpayer. Practice as an enrolled actuary is limited to representation with respect to issues involving the following statutory provisions:
§§ 401, 403(a), 404, 412, 413, 414, 4971, 6057, 6058, 6059, 6652(e), 6652(f), 6692,
7805(b), and 29 U.S.C. 1083;

A person with a “Letter
of Authorization”

(e) Any other person, including a foreign representative who has received a “Letter of
Authorization” from the Director of Practice 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 of Practice, HR:DP, 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.

Employee, general partner,
bona fide officer,
administrator, trustee, etc.

(f) The above requirements do not apply to a regular full-time employee representing his
or her employer, to a general partner representing his or her partnership, to a bona fide
officer representing his or her corporation, association, or organized group, to a trustee, receiver, guardian, personal representative, administrator, or executor representing a trust,
receivership, guardianship, or estate, or to an individual representing his or her immediate
family. A preparer of a return (other than a person referred to in paragraph (a), (b), (c), (d)
or (e) of this section 9.02(11)) who is not a full-time employee, general partner, a bona
fide officer, an administrator, trustee, etc., or an individual representing his or her immediate family may not represent a taxpayer in connection with a letter ruling, determination
letter or a technical advice request. See section 10.7(c) of Treasury Department Circular
No. 230.

Foreign representative

(g) A foreign representative (other than a person referred to in paragraph (a), (b), (c),
(d) or (e) of this section 9.02(11)) is not authorized to practice before the Service and,
therefore, must withdraw from representing a taxpayer in a request for a letter ruling or
a determination letter. In this situation, the nonresident alien or foreign entity must submit the request for a letter ruling or a determination letter on the individual’s or entity’s
own behalf or through a person referred to in paragraph (a), (b), (c), (d) or (e) of this
section 9.02(11).

Power of attorney and
declaration of representative

(12) Power of attorney and declaration of representative. Any authorized representative, whether or not enrolled to practice, must also comply with the conference and practice requirements of the Statement of Procedural Rules (26 C.F.R. § 601.501–601.509
(1999)), which provide the rules for representing a taxpayer before the Service.
It is preferred that Form 2848, Power of Attorney and Declaration of Representative, be
used to provide the representative’s authorization (Part I of Form 2848, Power of Attorney) and the representative’s qualification (Part II of Form 2848, Declaration of Representative). The name of the person signing Part I of Form 2848 should also be typed or
printed on this form. A stamped signature is not permitted. An original, a copy, or a facsimile transmission (fax) of the power of attorney is acceptable so long as its authenticity
is not reasonably disputed. For additional information regarding the power of attorney
form, see section 9.03(2) of this revenue procedure.

January 3, 2000

134

2000–1 I.R.B.

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 ruling request submitted at a later time must be accompanied by the following declaration: “Under penalties of perjury, I declare that I have
examined this request, or this modification to the request, including accompanying
documents, and, to the best of my knowledge and belief, the request or the modification contains all the relevant facts relating to the request, and such facts are true,
correct, and complete.” See section 11.04 of this revenue procedure for the penalties of
perjury statement applicable for submissions of additional information.
(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer,
not the taxpayer’s representative. A stamped 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.

Applicable user fee

(14) Applicable user fee. Section 10511 of the Revenue Act of 1987, Pub. L. No.
100–203, 101 Stat. 1330–382, 1330–446, enacted December 22, 1987, as amended by §
11319 of the Omnibus Budget Reconciliation Act of 1990, 1991–2 C.B. 481, 511, enacted
November 5, 1990, by § 743 of the Uruguay Round Agreements Act, 1995–1 C.B. 230,
239, enacted December 8, 1994, and by § 2 of the Tax Relief to Operation Joint Endeavor
Participants Act, Pub. L. No. 104–117, 110 STAT. 827, 828, enacted March 20, 1996, requires taxpayers to pay user fees for requests for rulings, opinion letters, determination letters, and similar requests. Rev. Proc. 2000–8, page 230, this Bulletin, contains the schedule of fees for each type of request under the jurisdiction of the Commissioner, Tax
Exempt and Government Entities Division and provides guidance for administering the
user fee requirements. If two or more taxpayers are parties to a transaction and each requests a letter ruling, each taxpayer must satisfy the rules herein and additional user fees
may apply.

Number of copies of request
to be submitted

(15) Number of copies of request to be submitted. Generally a taxpayer needs only to
submit one copy of the request for a letter ruling or determination letter. If, however, more
than one issue is presented in the letter ruling request, the taxpayer is encouraged to submit additional copies of the request.
Further, two copies of the request for a letter ruling or determination letter are required
if—
(a) the taxpayer is requesting separate letter rulings or determination letters on different
issues as explained later under section 9.03(1) of this revenue procedure;
(b) the taxpayer is requesting deletions other than names, addresses, and identifying
numbers, as explained in section 9.02(9) of this revenue procedure. (One copy is the request for the letter ruling or determination letter and the second copy is the deleted version
of such request.); or
(c) a closing agreement (as defined in section 3.03 of this revenue procedure) is being re-

2000–1 I.R.B.

135

January 3, 2000

quested on the issue presented.
Sample of a letter
ruling request

(16) Sample format for a letter ruling request. To assist a taxpayer or the taxpayer’s
representative in preparing a letter ruling request, a sample format for a letter ruling request is provided in Appendix A. This format is not required to be used by the taxpayer or
the taxpayer’s representative. If the letter ruling request is not identical or similar to the
format in Appendix A, the different format will neither defer consideration of the letter
ruling request nor be cause for returning the request to the taxpayer or taxpayer’s representative.

Checklist

(17) Checklist for letter ruling requests. The Service will be able to respond more
quickly to a taxpayer’s letter ruling request if it is carefully prepared and complete. The
checklist in Appendix B of this revenue procedure is designed to assist taxpayers in
preparing a request by reminding them of the essential information and documents to be
furnished with the request. The checklist in Appendix B must be completed to the extent
required by the instructions in the checklist, signed and dated by the taxpayer or the taxpayer’s representative, and placed on top of the letter ruling request. If the checklist in
Appendix B is not received, a group representative will ask the taxpayer or the taxpayer’s
representative to submit the checklist, which may delay action on the letter ruling request.
A photocopy of this checklist may be used.

Additional information
required in certain
circumstances
Multiple issues

.03

(1) To request separate letter rulings for multiple issues in a single situation. If
more than one issue is presented in a request for a letter ruling, the Service generally will
issue a single ruling letter covering all the issues. However, if the taxpayer requests separate letter rulings on any of the issues (because, for example, one letter ruling is needed
sooner than another), the Service will usually comply with the request unless it is not feasible or not in the best interests of the Service to do so. A taxpayer who wants separate letter rulings on multiple issues should make this clear in the request and submit two copies
of the request.
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) To designate recipient of original or copy of letter ruling or determination letter.
Unless the power of attorney provides otherwise, 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. It is preferred that Form 2848, Power of Attorney
and Declaration of Representative, be used to provide the representative’s authorization.
See section 9.02(12) of this revenue procedure.

Copies of letter ruling or
determination letter sent
to multiple representatives

(a) To have copies sent to multiple representatives. When a taxpayer has more than
one representative, the Service will send the copy of the letter ruling or determination
letter to 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.

Original of letter ruling or
determination letter sent
to taxpayer’s representative

(b) To have original sent to taxpayer’s representative. A taxpayer may request that
the original of the letter ruling or determination letter be sent to the taxpayer’s representative. In this case, a copy of the letter ruling or determination letter will be sent to the taxpayer. The letter ruling or determination letter is addressed to the taxpayer’s representa-

January 3, 2000

136

2000–1 I.R.B.

tive to whom the original is sent.
If the taxpayer wants the original of the letter ruling or determination letter sent to the
taxpayer’s representative, 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 the original of
the letter ruling or determination letter is to be sent to the taxpayer’s representative. When
a taxpayer has more than one representative, the Service will send the original of the letter
ruling or determination letter to the first representative named in the most recent power of
attorney.
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. 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 not
to be sent to any representative.

Expeditious handling

(3) To request expeditious handling. The Service processes requests for letter rulings
and determination letters in order of the date received, and as expeditiously as possible. A
taxpayer who has a compelling need to have a request processed ahead of the regular order
must request expeditious handling. The request must be made in writing, preferably in a
separate letter with, or soon after filing, the request for the letter ruling or determination
letter. The request must explain the need for expeditious handling.
If the request for expeditious handling 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: “Expeditious Handling Is Requested. See page ___ of this letter.”
A request for expeditious 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.
The Service cannot give assurance that any letter ruling or determination letter will be
processed by the time requested. For example, 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 a
sufficient reason to process a request out of order. Accordingly, the Service urges taxpayers to submit their requests well in advance of the contemplated transaction.

Facsimile transmission
(fax)

(4) To receive a letter ruling or submit a request for a letter ruling by facsimile
transmission (fax).
(a) To receive a letter ruling by fax. A letter ruling ordinarily is not sent by fax. However, if the taxpayer requests, a copy of a letter ruling may be faxed to the taxpayer or the
taxpayer’s authorized representative. A letter ruling, however, is not issued until the ruling
is mailed. See § 301.6110–2(h).
A request to fax a copy of the letter ruling to the taxpayer or the taxpayer’s authorized
representative must be made in writing, either as part of the original letter ruling request or
prior to the approval of the letter ruling. The request must contain the fax number of the
taxpayer or the taxpayer’s authorized representative to whom the letter ruling is to be
faxed.
In addition, because of the nature of a fax transmission, a statement containing a waiver
of any disclosure violations resulting from the fax transmission must accompany the request. Nevertheless, the Service will take certain precautions to protect confidential information. For example, the Service will use a cover sheet that identifies the intended recipient of the fax and the number of pages transmitted. The cover sheet, if possible, will not
identify the specific taxpayer by name, and it will be the first page covering the letter rul-

2000–1 I.R.B.

137

January 3, 2000

ing being faxed.
(b) To submit a request for a letter ruling by fax. Original letter ruling requests sent
by fax are discouraged because such requests must be treated in the same manner as requests by letter. For example, the faxed letter ruling request will not be forwarded to the
applicable branch for action until the check for the user fee is received.
Requesting a conference

(5) To request a conference. A taxpayer who wants to have a conference on the issues
involved should indicate this in writing when, or soon after, filing the request. See also
sections 12.01, 12.02, and 13.09(2) of this revenue procedure.

Address to send the request

.04

Requests for letter rulings

(1) Requests for letter rulings should be sent to the following offices (as appropriate):
Employee Plans
Internal Revenue Service
Commissioner, TE/GE
Attention: T:EP:RA
P.O. Box 14073, Ben Franklin Station
Washington, D.C. 20044
Exempt Organizations
Internal Revenue Service
Commissioner, TE/GE
Attention: T:EO:RA
P.O. Box 120, Ben Franklin Station
Washington, D.C. 20044
Requests may also be hand delivered:
(a) After working hours, to the drop box at the 12th Street entrance of 1111 Constitution
Avenue, N.W., Washington, DC. No receipt will be given at the drop box; or
(b) Between the hours of 8:15 a.m. and 5:00 p.m. to:
Courier’s Desk
Internal Revenue Service
Att: T:EP or T:EO
1111 Constitution Avenue, N.W.
Washington, DC
A receipt will be given at the Courier’s desk.
The package should be marked: RULING REQUEST SUBMISSION. Requests may also
be hand delivered to Room 6052, 1111 Constitution Avenue, N.W., Washington, DC between 8:30 a.m. and 4:00 p.m. on work days.

Requests for information
letters

(2) Requests for information letters on either exempt organizations matters or
employee plans matters should be sent to the Employee Plans Technical Branches or the
Exempt Organizations Technical Branches (as appropriate):
Internal Revenue Service
1111 Constitution Avenue, N.W.
Attention: T:EP or T:EO, Room 6052
Washington, DC 20224

Requests for determination

January 3, 2000

(3) Requests for determination letters should be sent to:

138

2000–1 I.R.B.

letters

Internal Revenue Service
EP/EO Determinations Processing.
P.O. Box 192
Covington, KY 41012–0192
For fees required with determination letter requests, see section 6 of Rev. Proc. 2000–8.

Summary of Exempt
Organizations fees

(4) To expedite taxpayer service, 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 fees may be applicable in certain instances.

ISSUE

LOCATION

FEE

Accounting period and method changes

Technical

$140

Advance approval after recognition of exemption

Determinations

none

Advance ruling period inquiries

Determinations

none

Amendments, reorganizations, name changes

Determinations

none

Application for recognition of exemption

Determinations

$500

Confirmation of exemption

Determinations

none

Qualified subsidiaries of § 501(c)(25) organizations

Technical

$500

Regulation § 301.9100 relief in connection with applications for recognition of exemption

Determinations

none

(a) Notice under § 507(b)(1) or (2)

Determinations

none

(b) Advance ruling under § 507(b)(1) or (2)

Technical

$2,275

Section 514(b)(3) Neighborhood Land Use Rule

Technical

none

Section 4940(d) exempt operating foundation status

Determinations

none

Section 4942(g)(2) set-asides notification

Technical

none

Section 4943(c)(7) extensions of disposal period

Technical

$2,275

Section 4945 advance approval of organization’s grant making procedures with
applications for recognition of exemption

Determinations

none

Section 4945(f) advance approval of voter registration activities

Determinations

none

(a) requested with original application

Determinations

none

(b) requested after recognition of exemption

Technical

$220

Determinations

none

Section 507 terminations

Section 6033 annual information return filing requirements

Unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and 509(a)(2)
Pending letter ruling requests

.05
(1) Circumstances under which the taxpayer must notify EP or EO Technical. The
taxpayer must notify EP or EO Technical if, after the letter ruling request is filed but before a letter ruling is issued, the taxpayer knows that—
(a) an examination of the issue or the identical issue on an earlier year’s return has been
started by an EP or EO Examinations office;
(b) in employee plans matters, the issue is being considered by the Pension Benefit
Guaranty Corporation or the Department of Labor; or
(c) legislation that may affect the transaction has been introduced (see section 9.02(8) of
this revenue procedure).
(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

2000–1 I.R.B.

139

January 3, 2000

EO Technical concerning the issue, the taxpayer must notify EP or EO Technical that the
return has been filed. The taxpayer must also attach a copy of the letter ruling request to
the return to alert the EP or EO Examinations office and thereby avoid premature EP or
EO Examinations office action on the issue.
When to attach letter
ruling to return

.06 A taxpayer who receives a letter ruling before filing a return about any transaction
that is relevant to the return being filed must attach a copy of the letter ruling to the return
when it is filed.

How to check on
status of request

.07 The taxpayer or the taxpayer’s authorized representative may obtain information
regarding the status of a request by calling the person whose name and telephone number
are shown on the acknowledgement of receipt of the request.

Request may be withdrawn
or EP or EO Technical may
decline to issue letter ruling

.08
(1) In general. A taxpayer may withdraw a request for a letter ruling or determination
letter at any time before the letter ruling or determination letter is signed by the Service.
Correspondence and exhibits related to a request that is withdrawn or related to a letter
ruling request for which the Service declines to issue a letter ruling will not be returned to
the taxpayer. See section 9.02(2) of this revenue procedure. In appropriate cases, the Service may publish its conclusions in a revenue ruling or revenue procedure.
A request for a letter ruling will not be suspended in the EP or EO Technical at the request
of a taxpayer.
(2) Notification of Director, EP or EO Examinations. If a taxpayer withdraws a request for a letter ruling or if EP or EO Technical declines to issue a letter ruling, EP or EO
Technical will notify the Director, EP or EO Examinations and may give its views on the
issues in the request to the Director, EP or EO Examinations to consider in any later examination of the return.
(3) Refunds of user fee. The user fee will not be returned for a letter ruling request that
is withdrawn. If the Service declines to issue a letter ruling on all of the issues in the request, the user fee will be returned. If the Service, however, issues a letter ruling on
some, but not all, of the issues, the user fee will not be returned. See section 10 of Rev.
Proc. 2000–8 for additional information regarding refunds of user fees.

Compliance with Treasury
Department Circular No. 230

.09 The taxpayer’s authorized representative, whether or not enrolled, must comply with
Treasury Department Circular No. 230, which provides the rules for practice before the
Service. In those situations when EP or EO Technical believes that the taxpayer’s representative is not in compliance with Circular No. 230, EP or EO Technical will bring the
matter to the attention of the Director of Practice.
For the requirement regarding compliance with the conference and practice requirements, see section 9.02(12) of this revenue procedure.

SECTION 10. WHAT
SPECIFIC, ADDITIONAL
PROCEDURES APPLY TO
CERTAIN REQUESTS?
In general

.01 Specific revenue procedures supplement the general instructions for requests explained in section 9 of this revenue procedure and apply to requests for letter rulings or determination letters regarding the Code sections and matters listed in this section.

Exempt Organizations

.02 If the request is for the qualification of an organization for exemption from federal
income tax under § 501 or 521, see Rev. Proc. 72–5, 1972–1 C.B. 709, regarding religious
and apostolic organizations; Rev. Proc. 80–27, 1980–1 C.B. 677, concerning group ex-

January 3, 2000

140

2000–1 I.R.B.

emptions; and Rev. Proc. 90–27, 1990–1 C.B. 514 (as modified by Rev. Proc. 2000–8), regarding applications for recognition of exemption.
Employee Plans

.03
(1) For requests to obtain approval for a retroactive amendment described in § 412(c)(8)
of the Code and § 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, see Rev. Proc. 94–41,
1994–1 C.B. 711.
(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
only de minimis increases 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 unfunded liability in accordance with § 412(e), see Rev. Proc. 79–61, 1979–2 C.B. 575.
(6) For requests by administrators or sponsors of a defined benefit plan to obtain approval
for a change in funding method, see Rev. Proc. 78–37, 1978–2 C.B. 540.
(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. 2000–8).
(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. 20006, Rev. Proc. 93-10 and Rev. Proc. 93-12.

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
representative or any other authorized Service representative under this procedure, and
such an opinion cannot be relied upon as a basis for obtaining retroactive relief under the
provisions of § 7805(b).

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
provisions of this revenue procedure, the request will be acknowledged and the Service
representative will tell the taxpayer during the initial contact which requirements have not
been met.

Information must be
submitted within
30 calendar days

If the request lacks essential information, which may include additional information
needed to satisfy the procedural requirements of this revenue procedure, as well as
substantive changes to transactions or documents needed from the taxpayer, the Service
representative will tell the taxpayer during the initial contact that the request will be closed
if the Service does not receive the information within 30 calendar days unless an extension
of time is granted. See section 11.04 of this revenue procedure for information on exten-

2000–1 I.R.B.

141

January 3, 2000

sion 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
Processing 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 by telephone or fax, or orally at a conference,
must be promptly confirmed by letter to the Service. This confirmation and any additional
information requested by the Service that is not part of the information requested during
the initial contact must be furnished within 21 calendar days to be considered part of the
request.
Additional information submitted to the Service must be accompanied by the following
declaration: “Under penalties of perjury, I declare that I have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and complete.” This declaration must be
signed in accordance with the requirements in section 9.02(13)(b) of this revenue procedure. A taxpayer who submits additional factual information on several occasions may
provide one declaration subsequent to all submissions that refers to all submissions.

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 representative who requests additional information can provide a telephone number to which
the information can be faxed. A copy of this information and a signed 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. See section 9.04. However, the additional information should include the name,
office symbols, and room number of the Service representative who requested the information and the taxpayer’s name and the case control number (which the Service representative can provide).

Number of copies of
additional information
to be submitted

(3) Generally, a taxpayer needs only to submit one copy of the additional information.
However, in appropriate cases, the Service may request additional copies of the
information.

30-day or 21-day period
may be extended if
justified and approved

(4) An extension of the 30-day period under section 11.03 or the 21-day period under
section 11.04, will be granted only if justified in writing by the taxpayer and approved by
the manager of the group to which the case is assigned. A request for extension should be
submitted before the end of the 30-day or 21-day period. If unusual circumstances close
to the end of the 30-day or 21-day period make a written request impractical, the taxpayer
should notify the Service within the 30-day or 21-day period that there is a problem and
that the written request for extension will be coming soon. The taxpayer will be told
promptly, and later in writing, of the approval or denial of the requested extension. If the
extension request is denied, there is no right of appeal.

If taxpayer does not submit
additional information

(5) If the taxpayer does not follow the instructions for submitting additional information
or requesting an extension within the time provided, a letter ruling will be issued on the
basis of the information on hand, or, if appropriate, no letter ruling will be issued. When
the Service decides not to issue a letter ruling because essential information is lacking, the
case will be closed and the taxpayer notified in writing. If the Service receives the information after the letter ruling request is closed, the request may be reopened and
treated as a new request. However, the taxpayer must pay another user fee before
the case can be reopened.

Near the completion of the
ruling process, advises

.05 Generally, after the conference of right is held but before the letter ruling is issued,
the Service representative will inform the taxpayer or the taxpayer’s authorized representa-

January 3, 2000

142

2000–1 I.R.B.

taxpayer of conclusions and,
if the Service will rule adversely,
offers the taxpayer the
opportunity to withdraw
the letter ruling request

tive of the Service’s final conclusions. If the Service is going to rule adversely, the
taxpayer will be offered the opportunity to withdraw the letter ruling request. If the
taxpayer or the taxpayer’s representative does not promptly notify the Service representative of a decision to withdraw the ruling request, the adverse letter will be issued. The
user fee will not be refunded for a letter ruling request that is withdrawn. See section 10 of
Rev. Proc. 2000–8.

May request draft of proposed
letter ruling near the completion
of the ruling process

.06 To accelerate issuance of letter rulings, in appropriate cases near the completion of
the ruling process, the Service representative may request that the taxpayer or the
taxpayer’s representative submit a proposed draft of the letter ruling on the basis of discussions of the issues. The taxpayer, however, is not required to prepare a draft letter ruling in order to receive a letter ruling.
The format of the submission should be discussed with the Service representative who
requests the draft letter ruling. The representative usually can provide a sample format of
a letter ruling and will discuss the facts, analysis, and letter ruling language to be included.

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 in
either WordPerfect or ASCII. The typed draft will become part of the permanent files of
the Service, and the word processing disk will not be returned. If the Service representative requesting the draft letter ruling cannot answer specific questions about the format of
the word processing disk, the questions can be directed to Alan Pipkin at (202) 622-7389
(Employee Plans), or Wayne Hardesty at (202) 622-7644 (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). See section 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 stated in section 9.03(5) of this revenue procedure, a taxpayer who wants to have a conference on the issue or issues involved
should indicate this in writing when, or soon after, filing the request.
If a conference has been requested, the taxpayer will be notified by telephone, if possible,
of the time and place of the conference, which must then be held within 21 calendar days
after this contact. Instructions for requesting an extension of the 21-day period and notifying the taxpayer or the taxpayer’s representative of the Service’s approval or denial of the
request for extension are the same as those explained in section 11.04 of this revenue procedure regarding providing additional information.

Permits taxpayer one
conference of right

.02 A taxpayer is entitled, as a matter of right, to only one conference, except as explained
under section 12.05 of this revenue procedure. This conference normally will be held at
the group level and will be attended by a person who, at the time of the conference, has
the authority to sign the ruling letter in his or her own name or for the group manager.
When more than one group has taken an adverse position on an issue in a letter ruling request, or when the position ultimately adopted by one group will affect that adopted by another, a representative from each group with the authority to sign in his or her own name
or for the group manager will attend the conference. If more than one subject is to be discussed at the conference, the discussion will constitute a conference on each subject.

2000–1 I.R.B.

143

January 3, 2000

To have a thorough and informed discussion of the issues, the conference usually will be
held after the group has had an opportunity to study the case. However, at the request of
the taxpayer, the conference of right may be held earlier.
No taxpayer has a right to appeal the action of a group to any other official of the Service.
But see section 12.05 of this revenue procedure for situations in which the Service may
offer additional conferences.
Disallows verbatim
recording of conferences

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

Makes tentative
recommendations on
substantive issues

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

May offer additional
conferences

.05 The Service will offer the taxpayer an additional conference if, after the conference
of right, an adverse holding is proposed, but on a new issue, or on the same issue but on
different grounds from those discussed at the first conference. There is no right to another
conference when a proposed holding is reversed at a higher level with a result less favorable to the taxpayer, if the grounds or arguments on which the reversal is based were discussed at the conference of right.
The limit on the number of conferences to which a taxpayer is entitled does not prevent
the Service from offering additional conferences, including conferences with an official
higher than the group level, if the Service decides they are needed. Such conferences are
not offered as a matter of course simply because the group has reached an adverse decision. In general, conferences with higher level officials are offered only if the Service determines that the case presents significant issues of tax policy or tax administration and
that the consideration of these issues would be enhanced by additional conferences with
the taxpayer.

Requires written
confirmation of information
presented at conference

.06 The taxpayer should furnish to the Service any additional data, reasoning,
precedents, etc., that were proposed by the taxpayer and discussed at the conference but
not previously or adequately presented in writing. The taxpayer must furnish the additional information within 21 calendar days from the date of the conference. See section
11.04 of this revenue procedure for instructions on submission of additional information.
If the additional information is not received within that time, a ruling will be issued on the
basis of the information on hand or, if appropriate, no ruling will be issued.
Procedures for requesting an extension of the 21-day period and notifying the taxpayer or
the taxpayer’s representative of the Service’s approval or denial of the requested extension
are the same as those stated in section 11.04 of this revenue procedure regarding submitting additional information.

May schedule a presubmission conference

January 3, 2000

.07 Sometimes it is advantageous to both the Service and the taxpayer to hold a conference before the taxpayer submits the letter ruling request to discuss substantive or procedural issues relating to a proposed transaction. Such conferences are held 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 on a time-available basis. For example, a presubmission conference will not be held on an income tax issue if, at the time the pre-submission conference is requested, the identical issue is involved in the taxpayer’s return for
an earlier period and that issue is being examined. See section 6 of this revenue procedure.
Generally, the taxpayer will be asked to provide before the pre-submission conference a

144

2000–1 I.R.B.

statement of whether the issue is an issue on which a letter ruling is ordinarily issued and a
draft of the letter ruling request or other detailed written statement of the proposed transaction, issue, and legal analysis. If the taxpayer’s representative will attend the pre-submission conference, a power of attorney form is required. It is preferred that a Form 2848,
Power of Attorney and Declaration of Representative, be used to provide the representative’s authorization.
Any discussion of substantive issues at a pre-submission conference is advisory only, is
not binding on the Service, and cannot be relied upon as a basis for obtaining retroactive
relief under the provisions of § 7805(b). A letter ruling request submitted following a presubmission 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).

SECTION 13. WHAT EFFECT
WILL A LETTER RULING
HAVE?
May be relied on
subject to limitations

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

Will not apply to another
taxpayer

.02 A taxpayer may not rely on a letter ruling issued to another taxpayer. See
§ 6110(j)(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 statement of the material facts;
(3) the transaction was carried out substantially as proposed; and
(4) there has been any change in the law that applies to the period during which the
transaction or continuing series of transactions were consummated.
If, when determining the liability, the Director, EP or EO Examinations finds that a letter
ruling should be revoked or modified, unless a waiver is obtained from EP or EO Technical, the findings and recommendations of the Director, EP or EO Examinations will be
forwarded to EP or EO Technical for consideration before further action is taken by EP or
EO Examinations. Such a referral to EP or EO Technical will be treated as a request for
technical advice and the procedures of Rev. Proc. 2000–5 will be followed. Otherwise,
the letter ruling is to be applied by the Director, EP or EO Examinations in determining the
taxpayer’s liability. Appropriate coordination with EP or EO Technical will be undertaken
if any field official having jurisdiction over a return or other matter proposes to reach a
conclusion contrary to a letter ruling previously issued to the taxpayer.
May be revoked or modified
if found to be in error

2000–1 I.R.B.

.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

145

January 3, 2000

Service may be revoked or modified. If a letter ruling is revoked or modified, the revocation or modification applies to all years open under the statute of limitations unless the
Service uses its discretionary authority under § 7805(b) to limit the retroactive effect of
the revocation or modification.
A letter ruling may be revoked or modified due to—
(1) a notice to the taxpayer to whom the letter ruling was issued;
(2) the enactment of legislation or ratification of a tax treaty;
(3) a decision of the United States Supreme Court;
(4) the issuance of temporary or final regulations; or
(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement published in the Internal Revenue Bulletin.
Consistent with these provisions, if a letter ruling relates to a continuing action or a series
of actions, it ordinarily will be applied until any one of the events described above occurs
or until it is specifically withdrawn.
Publication of a notice of proposed rulemaking will not affect the application of any letter ruling issued under this revenue procedure.
Not generally revoked or
modified retroactively

.05 Except in rare or unusual circumstances, the revocation or modification of a letter
ruling will not be applied retroactively to the taxpayer for whom the letter ruling was issued or to a taxpayer whose tax liability was directly involved in the letter ruling provided
that—
(1) there has been no misstatement or omission of material facts;
(2) the facts at the time of the transaction are not materially different from the facts on
which the letter ruling was based;
(3) there has been no change in the applicable law;
(4) the letter ruling was originally issued for a proposed transaction; and
(5) the taxpayer directly involved in the letter ruling acted in good faith in relying on the
letter ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer’s detriment. For example, the tax liability of each employee covered by a ruling relating to a qualified plan of an employer is directly involved in such ruling. However, the
tax liability of a member of an industry is not directly involved in a letter ruling issued to
another member and, therefore, the holding in a revocation or modification of a letter ruling to one member of an industry may be retroactively applied to other members of the industry. By the same reasoning, a tax practitioner may not extend to one client the nonretroactive 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

January 3, 2000

.06 A letter ruling issued on a particular transaction represents a holding of the Service
on that transaction only. It will not apply to a similar transaction in the same year or any
other year. And, except in unusual circumstances, the application of that letter ruling to
the transaction will not be affected by the later issuance of regulations (either temporary or

146

2000–1 I.R.B.

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.
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 Government Entities Divsion
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 other than those described in section 13.07 of this
revenue procedure, because the taxpayer did not enter into the transaction relying on a
letter ruling.

Taxpayer may request that
retroactivity be limited

.09 Under § 7805(b), the Service may prescribe any extent to which a revocation or
modification of a letter ruling or determination letter will be applied without retroactive effect.
A taxpayer to whom a letter ruling or determination letter has been issued may request
that the Commissioner, Tax Exempt and Government Entities Division limit the retroactive effect of any revocation or modification of the letter ruling or determination letter.

Format of request

(1) Request for relief under § 7805(b) must be made in required format.
A request to limit the retroactive effect of the revocation or modification of a letter ruling
must be in the general form of, and meet the general requirements for, a letter ruling request. These requirements are given in section 9 of this revenue procedure. Specifically,
the request must also—
(a) state that it is being made under § 7805(b);
(b) state the relief sought;
(c) explain the reasons and arguments in support of the relief requested (including a discussion of the five items listed in section 13.05 of this revenue procedure and any other
factors as they relate to the taxpayer’s particular situation); and
(d) include any documents bearing on the request.
A request that the Service limit the retroactive effect of a revocation or modification of a
letter ruling may be made in the form of a separate request for a letter ruling when, for example, a revenue ruling has the effect of revoking or modifying a letter ruling previously
issued to the taxpayer, or when the Service notifies the taxpayer of a change in position
that will have the effect of revoking or modifying the letter ruling. However, when notice
is given by the Director, EP or EO Examinations during an examination of the taxpayer’s
return or by the chief, appeals office, 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. 2000–5.
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.

2000–1 I.R.B.

147

January 3, 2000

Consideration of relief under § 7805(b) will be included as one of the taxpayer’s steps in
exhausting administrative remedies only if the taxpayer has requested such relief in the
manner described in this revenue procedure. If the taxpayer does not complete the applicable steps, the taxpayer will not have exhausted the taxpayer’s administrative remedies as
required by § 7428(b)(2) and § 7476(b)(3) and will, thus, be precluded from seeking a declaratory judgment under § 7428 or § 7476. Where the taxpayer has requested § 7805(b)
relief, the taxpayer’s administrative remedies will not be considered exhausted until the
Service has had a reasonable time to act upon the request.
Request for conference

(2) Taxpayer may request a conference on application of § 7805(b).
A taxpayer who requests the application of § 7805(b) in a separate letter ruling request
has the right to a conference in EP or EO Technical as explained in sections 12.01, 12.02,
12.03, 12.04 and 12.05 of this revenue procedure. If the request is made initially as part of
a pending letter ruling request or is made before the conference of right is held on the substantive issues, the § 7805(b) issue will be discussed at the taxpayer’s one conference of
right as explained in section 12.02 of this revenue procedure. If the request for the application of § 7805(b) relief is made as part of a pending letter ruling request after a conference has been held on the substantive issue and the Service determines that there is justification for having delayed the request, the taxpayer is entitled to one conference of right
concerning the application of § 7805(b), with the conference limited to discussion of this
issue only.

SECTION 14. WHAT
EFFECT WILL A
DETERMINATION
LETTER HAVE?
Has same effect as a
letter ruling

.01 A determination letter issued by EP or EO Determinations has the same effect as a
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 as is required for a letter ruling found to be in error. 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

Format of request

.02 The Director, EP or EO Examinations does not have authority under § 7805(b)
to limit the revocation or modification of the determination letter. Therefore, if the Director,
EP or EO Examinations proposes to revoke or modify a determination letter, the taxpayer
may request limitation of the retroactive effect of the revocation or modification by asking
EP or EO Determinations to seek technical advice from EP or EO Technical. See section
19 of Rev. Proc. 2000– 5
(1) Request for relief under § 7805(b) must be made in required format.
A taxpayer’s request to limit the retroactive effect of the revocation or modification of the
determination letter must be in the form of, and meet the general requirements for, a technical advice request. See section 18.06 of Rev. Proc. 2000–5. 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 fac-

January 3, 2000

148

2000–1 I.R.B.

tors as they relate to the taxpayer’s particular situation); and
(d) include any documents bearing on the request.
Request for conference

(2) Taxpayer may request a conference on application of § 7805(b).
When technical advice is requested regarding the application of § 7805(b), the taxpayer has
the right to a conference in EP or EO Technical to the same extent as does any taxpayer who
is the subject of a technical advice request. See section 11 of Rev. Proc. 2000–5.

Exhaustion of
administrative remedies

(3) Taxpayer steps in exhausting administrative remedies.
Consideration of relief under § 7805(b) will be included as one of the taxpayer’s steps in
exhausting administrative remedies only if the taxpayer has requested such relief in the
manner described in this revenue procedure. If the taxpayer does not complete the applicable steps, the taxpayer will not have exhausted the taxpayer’s administrative remedies as
required by § 7428(b)(2) and § 7476(b)(3) and will, thus, be precluded from seeking a declaratory judgment under § 7428 or § 7476. Where the taxpayer has requested § 7805(b)
relief, the taxpayer’s administrative remedies will not be considered exhausted until the
Service has had a reasonable time to act upon the request.

SECTION 15. UNDER
WHAT CIRCUMSTANCES
ARE MATTERS REFERRED
BETWEEN
DETERMINATIONS
AND TECHNICAL?
Requests for
determination letters

.01 Requests for determination letters received by EP or EO Determinations that, under
the provisions of this revenue procedure, may not be issued by EP or EO Determinations,
will be forwarded to the EP or EO Technical for reply. EP or EO Determinations will notify the taxpayer that the matter has been referred.
EP or EO Determinations will also refer to EP or EO Technical any request for a determination letter that in its judgement should have the attention of EP or EO Technical.

No-rule areas

.02 If the request involves an issue on which the Service will not issue a letter ruling or
determination letter, the request will not be forwarded to EP or EO Technical. EP or EO
Determinations will notify the taxpayer that the Service will not issue a letter ruling or a
determination letter on the issue. See section 8 of this revenue procedure for a description
of no- rule areas.

Requests for letter rulings

.03 Requests for letter rulings received by EP or EO Technical that, under section 6 of
this revenue procedure, may not be acted upon by EP or EO Technical will be forwarded
to the Director, EP or EO Examinations. The taxpayer will be notified of this action. If the
request is on an issue or in an area of the type discussed in section 8 of this revenue procedure, and the Service decides not to issue a letter ruling or an information letter, EP or EO
Technical will notify the taxpayer and will then forward the request to the Director, EP or
EO Examinations for association with the related return.

SECTION 16. WHAT ARE
THE GENERAL PROCEDURES
APPLICABLE TO INFORMATION
LETTERS ISSUED BY
HEADQUARTERS OFFICE?
Will be made available to the
public

2000–1 I.R.B.

.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 welldefined law without applying them to a specific set of facts. See section 3.06 of this

149

January 3, 2000

revenue procedure. Information letters that are issued by 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 discussion;
(2) responses to taxpayer or third party contacts that are inquiries with respect to a pending request for a letter ruling, technical advice memorandum, or Chief Counsel Advice
(whose public inspection is subject to § 6110); and
(3) responses to taxpayer or third party communications with respect to any investigation, audit, litigation, or other enforcement action.
Deletions under the Freedom
of Informaton 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
Freedom of Information Act (“FOIA”) (for example, FOIA personal privacy exemption of
5 U.S.C. § 552(b)(6) and tax details exempt pursuant to § 6103, as incorporated into FOIA
by 5 U.S.C. § 552(b)(3). Because information letters do not constitute written determinations (including Chief Counsel Advice) as defined in § 6110, these documents are not subject to public inspection under § 6110.

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. 99–4 is superseded.

SECTION 18. EFFECTIVE
DATE
SECTION 19. PAPERWORK
REDUCTION ACT

This revenue procedure is effective January 10, 2000.

The collections of information contained in this revenue procedure have been reviewed
and approved by the Office of Management and Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. § 3507) under control number 1545–1520.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid 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 Appendix B. 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 business or other for-profit institutions.
The estimated total annual reporting and/or recordkeeping burden is 12,980 hours.
The estimated annual burden per respondent/recordkeeper varies from 15 minutes to 16
hours, depending on individual circumstances and the type of request involved, with an
estimated average burden of 8.24 hours. The estimated number of respondents and/or

January 3, 2000

150

2000–1 I.R.B.

recordkeepers is 1,575.
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 INFORMATION

2000–1 I.R.B.

The principal author of this revenue procedure is Luis O. Ortiz of Employee Plans, Tax
Exempt and Government Entities Division. For further information regarding how this
revenue procedure applies to employee plan matters, contact the Employee Plans telephone assistance service between the hours of 1:30 and 3:30 p.m., Eastern Time, Monday
through Thursday, on (202) 622-6074/75 (not a toll-free call). Mr. Ortiz’ telephone number is (202) 622-6214 (not a toll-free call). For exempt organization matters, please contact Mr. Lynn Kawecki at (202) 622-7922 (not a toll-free call).

151

January 3, 2000

INDEX
additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(9), 9.03, 11.03, 11.04
closing agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.03, 6.06(4), 9.02(4), 9.02(15), 13.04
conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. sec. 9.02(9), 9.03(5), 12.01–.08, 13.09(2), 14.02(2)
disclose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(9)
exempt organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 6.01
expeditious handling

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.03(3)

extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 6.02, 6.04, 11.04, 12.01, 12.06
fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.03(4), 11.04
fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(14), 11.04(5)
hand delivered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.04(1)
information letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.07, 8.01, 15.03
no rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. sec. 8, 15.02
perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(13), 11.04, 11.06
power of attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(12), 9.03(2)
reliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.09, 11.02, 12.07, 13, 14
representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.09, 9.02(10)–(11), 9.03(2)
retroactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 11.02, 12.04, 12.07, 13, 14
revenue ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.08, 6.07, 13.04, 13.09(1)
section 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(9), 13.02
status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.07
technical advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 7.08, 13.03, 13.09(1), 14
telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(1), 11.04, 12.01, 12.08
where to send . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.04
withdraw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.08

January 3, 2000

152

2000–1 I.R.B.

APPENDIX A
SAMPLE FORMAT FOR A LETTER RULING REQUEST
(Insert the date of request)
Internal Revenue Service
Commissioner, TE/GE
Attention: T:EP:RA
P.O. Box 14073
Ben Franklin Station
Washington, DC 20044
Dear Sir or Madam:
(Insert the name of the taxpayer) (the “Taxpayer”) requests a ruling on the proper treatment of (insert the subject matter of the letter ruling request) under § (insert the number) of the Internal Revenue Code.
[If the taxpayer is requesting expeditious 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), (c), and (d) of Rev. Proc. 2000–4, 2000–1 I.R.B. 115. (Hereafter, all references are to Rev. Proc. 2000–4 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), (c), and (d):
The Taxpayer is a construction company with principal offices located at 100 Whatever Drive, Wherever, Maryland 12345, and its
telephone number is (123) 456-7890. The Taxpayer’s federal employer identification number is 00–1234567. The Taxpayer uses
the Form 5500 series of returns on a calendar year basis to report its qualified employee retirement plan and trust.
2. Detailed Description of the Transaction.
[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling request. This statement must include a detailed description of the transaction, including material facts in any accompanying documents, and the business reasons for the transaction. See sections 9.02(1)(c), 9.02(1)(d), and 9.02(2).]
B. RULING REQUESTED
[The ruling request should contain a concise statement of the ruling requested by the taxpayer.]
C. STATEMENT OF LAW
[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion, including any authorities
believed to be contrary to the position advanced in the ruling request. This statement must also identify any pending legislation that
may affect the proposed transaction. See sections 9.02(6), 9.02(7), and 9.02(8).]
D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. See sections 9.02(3), 9.02(6), 9.02(7), and
9.02(8).]
E. CONCLUSION
[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]

2000–1 I.R.B.

153

January 3, 2000

F. PROCEDURAL MATTERS
1. Rev. Proc. 2000–4 Statements
a. [The statement required by section 9.02(4).]
b. [The statement required by section 9.02(5).]
c. [The statement required by section 9.02(6) regarding whether the law in connection with the letter ruling request is uncertain
and whether the issue is adequately addressed by relevant authorities.]
d. [The statement required by section 9.02(7) when the taxpayer determines that there are no contrary authorities.]
e. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should contain
a statement to that effect. See section 9.03(5).]
f. [If the taxpayer is requesting the letter ruling to be issued by fax, the ruling request should contain a statement to that effect.
This statement must also contain a waiver of any disclosure violations resulting from the fax transmission. 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. 2000–4 are enclosed. [See sections 9.02(9) and 9.02(17).]
c. The required user fee is enclosed. [See section 9.02(14).]
Very truly yours,
(Insert the name of the taxpayer or the taxpayer’s authorized representative)
By:
___________________________
Signature

________________
Date

___________________________
Typed or printed name
of person signing request
DECLARATION: [See section 9.02(13).]
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best of my
knowledge and belief, the request contains all the relevant facts relating to the request and such facts are true, correct, and complete.
(Insert the name of the taxpayer)
By:
________________________________
Signature

______________________________
Title

_______________
Date

________________________________
Typed or printed name of
person signing declaration

January 3, 2000

154

2000–1 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 five items of information requested before the checklist. Answer each
question by circling “Yes,” “No,” or “N/A.” When a question contains a place for a page number, insert the page number (or numbers) of the request that gives the information called for by a yes answer to a question. Sign and date the checklist (as taxpayer or
authorized representative) and place it on top of your request.
If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with the request, or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist is
submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will not
be cause for returning your request or deferring substantive consideration of the request. However, you should still complete
as much of the checklist as possible and submit it with your request.
TAXPAYER’S NAME

__________________________________________________________

TAXPAYER’S I.D. No. __________________________________________________________
ATTORNEY/P.O.A. _____________________________________________________________
PRIMARY CODE SECTION ______________________________________________________

CIRCLE ONE

ITEM

Yes No N/A

1. Does your request involve an issue under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division? See section 5 of Rev. Proc. 2000–4, 2000–1 I.R.B. 115, for issues under the jurisdiction of other offices. (Hereafter, all references are to Rev. Proc. 2000–4 unless otherwise noted.)

Yes No N/A

2. If your request involves a matter on which letter rulings are not ordinarily issued, have you given compelling reasons to justify the issuance of a private letter ruling? Before preparing your request, you may
want to call the office responsible for substantive interpretations of the principal Internal Revenue Code section on which you are seeking a letter ruling to discuss the likelihood of an exception. The appropriate office
to call for this information may be obtained by calling (202) 622-8300 (Employee Plans matters), or (202)
622-8300 (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 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 8.02.

Yes No

6. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 8.02.

Yes No

7. Are you requesting the letter ruling for only part of an integrated transaction? See section 8.03.

Yes No
Yes No

8. Have you submitted another letter ruling request for the transaction covered by this request?
9. Are you requesting the letter ruling for a business, trade, industrial association, or similar group concerning the application of tax law to its members? See section 6.07.

Yes No

10. Have you included a complete statement of all the facts relevant to the transaction? See section 9.02(1).

2000–1 I.R.B.

155

January 3, 2000

Pages ____
Yes No N/A

11. Have you submitted with the request true copies of all wills, deeds, plan documents, and other documents relevant to the transaction, and labelled 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 of any legislation, tax treaties, court decisions, regulations,
notices, revenue rulings, or revenue procedures you determined to be contrary to the position advanced? See
section 9.02(7), which states that taxpayers are encouraged to inform the Service of such authorities.

Yes No N/A
Page____

19. If you determined that there are no contrary authorities, have you included a statement to this effect in
your request? See section 9.02(7).

Yes No N/A
Page ____

20. Have you included in your request a statement identifying any pending legislation that may affect the
proposed transaction? See section 9.02(8).

Yes No

21. Is the request accompanied by the deletions statement required by § 6110? See section 9.02(9).

Yes No N/A
Page ____

22. Have you (or your authorized representative) signed and dated the request? See section 9.02(10).

Yes No N/A

23. If the request is signed by your representative, or if your representative will appear before the Service in
connection with the request, is the request accompanied by a properly prepared and signed power of attorney
with the signatory’s name typed or printed? See section 9.02(12).

Yes No N/A
Page ____

24. Have you included, signed and dated, the penalties of perjury statement in the form required by section
9.02(13)?

Yes No N/A

25. Have you included the correct user fee with the request and made your check or money order payable to
the United States Treasury ? See section 9.02(14) and Rev. Proc.2000–8, page 230, this Bulletin, for the correct amount and additional information on user fees.

Yes No N/A

26. Are you submitting your request in duplicate if necessary? See section 9.02(15).

Yes No N/A
Pages ____

27. If you are requesting separate letter rulings on different issues involving one factual situation, have you
included a statement to that effect in each request? See section 9.03(1).

Yes No N/A

28. If you want the original of the ruling to be sent to a representative, does the power of attorney contain a

January 3, 2000

156

2000–1 I.R.B.

statement to that effect? See section 9.03(2).
Yes No N/A

29. 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 ____

30. If you have more than one representative, have you designated whether the second representative listed
on the power of attorney is to receive a copy of the letter ruling? See section 9.03(2).

Yes No N/A

31. If you want your letter ruling request to be processed ahead of the regular order or by a specific date,
have you requested expeditious handling in the form required by section 9.03(3) and stated a compelling
need for such action in the request?

Yes No N/A
Page ____

32. If you are requesting that a copy of the letter ruling be issued by facsimile (fax) transmission, have you
included a statement containing a waiver of any disclosure violations resulting from the fax transmission?
See section 9.03(4).

Yes No N/A
Page ____

33. If you want to have a conference on the issues involved in the request, have you included a request for
conference in the ruling request? See section 9.03(5).

Yes No N/A

34. If your request is covered by any of the guideline revenue procedures or other special requirements
listed in section 10 of Rev. Proc. 2000–4, have you complied with all of the requirements of the applicable
revenue procedure?

Yes No N/A
Page ____

35. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all of
the requirements in section 13.09?

Yes No N/A

36. Have you addressed your request to the appropriate office listed in section 9.04? Improperly addressed
requests may be delayed (sometimes for over a week) in reaching the appropriate office for initial processing.

_______________________________________
Signature

___________________________________________
Title or authority

_______________
Date

_______________________________________
Typed or printed name of
person signing checklist

2000–1 I.R.B.

157

January 3, 2000

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2000–5
TABLE OF CONTENTS
SECTION 1. WHAT
IS THE PURPOSE OF
THIS REVENUE
PROCEDURE?

p. 162

SECTION 2. WHAT
CHANGES HAVE BEEN
MADE TO REV. PROC. 99–5?

p. 162

SECTION 3. WHAT
IS TECHNICAL ADVICE?

p. 162

SECTION 4. ON WHAT
ISSUES MAY OR MUST
TECHNICAL ADVICE BE
REQUESTED UNDER
THIS PROCEDURE?

p. 163

.01 Issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division
.02 Farmers’ cooperatives
.03 Basis for requesting technical advice
.04 Areas of mandatory technical advice

SECTION 5. ON WHAT
ISSUES MUST TECHNICAL
ADVICE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?

p. 164

.01 Matters (other than farmers’ cooperatives) under the jurisdiction of the
Associate Chief Counsel (Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organizations), and the Associate Chief Counsel (International).
.02 Alcohol, tobacco, and firearms taxes
.03 Excise taxes

SECTION 6. MAY
TECHNICAL ADVICE BE
REQUESTED FOR A
§ 301.9100–1 REQUEST DURING
THE COURSE OF AN
EXAMINATION?

p. 164

.01 A § 301.9100–1 request is a letter ruling request
.02 Statute of limitations
.03 Address to send a § 301.9100–1 request

.04 If the return is being examined or considered by an appeals office or a federal court, the taxpayer must notify Employee Plans Technical or Exempt Organizations Technical who will notify the Employee Plans Examinations Area
manager or Exempt Organizations Examinations Area manager, appeals office
or government counsel
SECTION 7. WHO IS
RESPONSIBLE FOR
REQUESTING TECHNICAL
ADVICE?

p. 166

.01 An Employee Plans Examinations Area manager, Exempt Organizations
Area manager, Employee Plans Determinations manager, Exempt Organizations
Determinations manager or chief, appeals office determines whether to request
technical advice.
.02 Taxpayer may ask that issue be referred for technical advice

SECTION 8. WHEN SHOULD
TECHNICAL ADVICE BE
REQUESTED?

January 3, 2000

p. 166

.01 Uniformity of position lacking
.02 When technical advice can be requested

158

2000–1 I.R.B.

.03 At earliest possible stage
SECTION 9. HOW ARE
PRE-SUBMISSION
CONFERENCES SCHEDULED?

p. 167

.01 Pre-submission conference generally is permitted when a request for
technical advice is likely and all parties agree to request the conference
.02 Purpose of pre-submission conference
.03 Request for pre-submission conference must be submitted in writing by the
EP or EO Examinations, EP or EO Determinations or appeals office
.04 Group will contact the EP or EO Examinations, EP or EO Determinations or
appeals office to arrange the pre-submission conference
.05 Pre-submission conference generally held in person
.06 Certain information required to be submitted to EP or EO Technical prior to
the pre-submission conference
.07 Pre-submission conference may not be taped
.08 Discussion of substantive issues is not binding on the Service

SECTION 10. WHAT MUST
BE INCLUDED IN THE
REQUEST FOR
TECHNICAL ADVICE?

p. 168

.01 Statement of issues, facts, law, and arguments
.02 Statement pertaining to statute of limitations
.03 General provisions of §§ 6104 and 6110 of the Internal Revenue Code
.04 Application of § 6104
.05 Statement identifying information to be deleted from public inspection
.06 Transmittal Form 5565, Request for Technical Advice - EP/EO
.07 Number of copies of request to be submitted
.08 Power of attorney
.09 Case files

SECTION 11. HOW ARE
REQUESTS HANDLED?

p. 170

.01 Taxpayer notified
.02 Conference offered
.03 If the taxpayer disagrees with the Service’s statement of facts
.04 If the Service disagrees with the taxpayer’s statement of facts
.05 If the taxpayer has not submitted the required deletions statement
.06 Criminal or civil fraud cases

SECTION 12. HOW DOES A
TAXPAYER APPEAL AN EP
OR EO MANAGER’S OR
CHIEF’S, APPEALS OFFICE
DECISION NOT TO SEEK
TECHNICAL ADVICE?

2000–1 I.R.B.

p. 172

.01 Taxpayer notified of decision not to seek technical advice
.02 Taxpayer may appeal decision not to seek technical advice
.03 EP or EO Examinations Area manager or EP or EO Determinations
manager or chief, appeals office, determines whether technical advice will be sought

159

January 3, 2000

.04 Decision may be reviewed but not appealed
SECTION 13. HOW ARE
REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN?

p. 173

SECTION 14. HOW ARE
CONFERENCES SCHEDULED?

p. 174

.01 Taxpayer notified
.02 EP or EO Technical may provide views
.01 If requested, offered to the taxpayer when adverse technical advice proposed
.02 Normally held within 21 days of contact with the taxpayer
.03 21-day period may be extended if justified and approved
.04 Denial of extension cannot be appealed
.05 Entitled to one conference of right
.06 Conference may not be taped
.07 Conference may be delayed to address a request for relief under § 7805(b)
.08 Service makes tentative recommendations
.09 Additional conferences may be offered
.10 Additional information submitted after the conference
.11 Under limited circumstances, may schedule a conference to be held by telephone

SECTION 15. HOW IS
STATUS OF REQUEST
OBTAINED?

p. 177

.01 Taxpayer or the taxpayer’s representative may request status from the EP or
EO Examinations, or EP or EO Determinations, or appeals office
.02 EP or EO Technical will give status updates to the EP or EO Examinations,
or EP or EO Determinations or chief, appeals office

SECTION 16. HOW DOES
EP or EO TECHNICAL
PREPARE THE TECHNICAL
ADVICE MEMORANDUM?

p. 177

.01 Delegates authority to group managers
.02 Determines whether request has been properly made
.03 Contacts the EP or EO Examinations, or EP or EO Determinations or appeals office to discuss issues
.04 Informs EP or EP Examinations or EP or EO Determinations or appeals office if any matters in the request have been referred to another group or office
.05 Informs the EP or EO Examinations or EP or EO Determinations or appeals
office if additional information is needed
.06 Informs the EP or EO Examinations, EP or EO Determinations or appeals
office of the tentative conclusion
.07 If a tentative conclusion has not been reached, gives date estimated for tentative conclusion
.08 Advises the EP or EO Examinations or EP or EO Determinations or appeals
office that tentative conclusion is not final
.09 Advises the EP or EO Examinations or EP or EO Determinations or appeals

January 3, 2000

160

2000–1 I.R.B.

office of final conclusions
.10 If needed, requests additional information
.11 Requests taxpayer to send additional information to EP or EO Technical and a
copy to the EP or EO Examinations or EP or EO Determinations or appeals office
.12 Informs the taxpayer when requested deletions will not be made
.13 Prepares reply in two parts
.14 Routes replies to appropriate office
SECTION 17. HOW DOES
EP OR EO EXAMINATIONS
OR EP OR EO
DETERMINATIONS
OR AN APPEALS OFFICE
USE THE TECHNICAL
ADVICE?

p. 180

.01 Generally applies advice in processing the taxpayer’s case
.02 Discussion with the taxpayer
.03 Gives copy to the taxpayer
.04 Taxpayer may protest deletions not made
.05 When no copy is given to the taxpayer

SECTION 18. WHAT IS THE
EFFECT OF TECHNICAL
ADVICE?

p. 181

.01 Applies only to the taxpayer for whom technical advice was requested
.02 Usually applies retroactively
.03 Generally applied retroactively to modify or revoke prior technical advice
.04 Applies to continuing action or series of actions until specifically withdrawn, modified or revoked
.05 Applies to continuing action or series of actions until material facts change
.06 Does not apply retroactively under certain conditions

SECTION 19. HOW MAY
RETROACTIVE EFFECT
BE LIMITED?

p. 182

.01 Commissioner has discretionary authority under § 7805(b)
.02 Taxpayer may request Commissioner to exercise authority
.03 Form of request to limit retroactivity — before an examination
.04 Form of request to limit retroactivity — during course of examination
.05 Form of request to limit retroactivity — technical advice that does not modify or revoke prior memorandum
.06 Taxpayer’s right to a conference
.07 Exhaustion of administrative remedies — employee plans determination letter requests
.08 Exhaustion of administrative remedies — exempt organization matters

SECTION 20. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?

2000–1 I.R.B.

p. 184

161

January 3, 2000

SECTION 21. EFFECTIVE
DATE

p. 184

SECTION 22. PAPERWORK
REDUCTION ACT

p. 184

INDEX

p. 185

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

This revenue procedure explains when and how Employee Plans Technical or Exempt
Organizations Technical gives technical advice to an Employee Plans (EP) Examinations
Area manager, Exempt Organizations (EO) Examinations Area manager, Employee Plans
(EP) Determinations manager, Exempt Organizations (EO) Determinations manager, or a
chief, appeals office in the employee plans areas (including actuarial matters) and exempt
organizations areas. It also explains the rights a taxpayer has when an EP or EO Examinations Area manager, an EP or EO Determinations manager or a chief, appeals office requests technical advice regarding a tax matter. The reference in this revenue procedure to
the chief, appeals office includes, when appropriate, the Assistant Regional Director of
Appeals (Large Case). In addition, any reference to appeals officer includes, when appropriate, the team chief.

SECTION 2. WHAT CHANGES
HAVE BEEN MADE TO
REV. PROC. 99–5?

.01 This revenue procedure is a general update of Rev. Proc. 99–5, 1999–1 I.R.B. 158,
which contains the general procedures for technical advice requests for matters within the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. While
some of the changes to Rev. Proc. 99–5 involve minor revisions, such as updating citations
to other revenue procedures, this revenue procedure also contains changes made by the
IRS Restructuring and Reform Act of 1998, Pub. L. 105–206 that are currently in place.
Taxpayers and Internal Revenue Service personnel may rely on the names, addresses and
symbols in this revenue procedure until further published notice.
.02 A new section 4.04(6) is added regarding an additional area of mandatory technical
advice.
.03 A new section 4.05 is added to expand upon the additional area of mandatory technical advice.
.04 Section 16.05 is amended to provide that an EP or EO Examinations Area manager,
an EP or EO Determinations manager or a chief, appeals office, should promptly notify
the taxpayer of a decision to return the case for further factual development or other reasons.

SECTION 3. WHAT IS
TECHNICAL ADVICE?

“Technical advice” means advice or guidance in the form of a memorandum furnished
by the Employee Plans Technical or Exempt Organizations Technical offices, (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 a chief, appeals office, submitted in accordance with the provisions of this revenue procedure in response to any technical or procedural question that develops during any proceeding on the interpretation and proper application of tax law, tax treaties, regulations, revenue rulings, notices or other precedents
published by the headquarters office to a specific set of facts. Such proceedings include
(1) the examination of a taxpayer’s return, (2) consideration of a taxpayer’s claim for refund or credit, (3) a request for a determination letter, (4) any other matter involving a specific taxpayer under the jurisdiction of EP or EO Examinations, EP or EO Determinations,
or an appeals office or (5) processing and considering nondocketed cases in an appeals office. However, they do not include cases in which the issue in the case is in a docketed
case for any year.
For purposes of technical advice, the term “taxpayer” includes all persons subject to any
provision of the Internal Revenue Code (including tax-exempt entities such as governmental units which issue municipal bonds within the meaning of § 103), and when appro-

January 3, 2000

162

2000–1 I.R.B.

priate, their representatives. However, the instructions and the provisions of this revenue
procedure do not apply to requests for technical advice involving any matter pertaining to
either tax-exempt bonds or mortgage credit certificates. Instead, the procedures under
Rev. Proc. 2000–2, page 73, this Bulletin must be followed.
Technical advice resolves complex issues and helps establish and maintain consistent
holdings throughout the Internal Revenue Service. An EP or EO Examinations, EP or EO
Determinations or appeals office, may raise an issue in any tax period, even though technical advice may have been asked and furnished for the same or similar issue for another tax
period.
Technical advice does not include legal advice furnished to the EP or EO Examinations,
EP or EO Determinations or appeals office in writing or orally, other than advice furnished
pursuant to this revenue procedure. In accordance with section 12.01 of this revenue procedure, a taxpayer’s request for referral of an issue for technical advice will not be denied
merely because EP or EO Technical has provided legal advice, other than advice furnished
pursuant to this revenue procedure, to the EP or EO Examinations, EP or EO Determinations or appeals office on the matter.
SECTION 4. ON WHAT
ISSUES MAY OR MUST
TECHNICAL ADVICE
BE REQUESTED UNDER
THIS 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 technical
advice on any issue under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division.

Farmers’ cooperatives

.02 If EP or EO Examinations, EP or EO Determinations or 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. 90–27, 1990–1 C.B. 514, as modified by
Rev. Proc. 2000–8, page 230 as well as § 601.201(n) of the Statement of Procedural Rules,
must be followed.

Basis for requesting
technical advice

.03 Requests for technical advice 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 EP or EO Examinations, EP or EO Determinations or an appeals office 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 technical advice with respect to all
exempt organizations and employee plans matters.
Except for those exemption application cases handled in EO Technical in accordance
with section 6.02 of Rev. Proc. 90–27, EO Examinations, EO Determinations and appeals
offices are required to request technical advice on their exempt organization cases concerning qualification for exemption or foundation status for which there is no published
precedent or for which there is reason to believe that nonuniformity exists.
Regarding employee plans matters, a request for technical advice is required in cases
concerning (1) proposed adverse or proposed revocation letters on collectively-bargained
plans, (2) plans for which the Service is proposing to issue a revocation letter because of
certain fiduciary actions that violate the exclusive benefit rule of § 401(a) of the Code and
are subject to Part 4 of Subtitle B of Title I of the Employee Retirement Income Security
Act of 1974, Pub. L. 93–406, 1974–3 C.B. 1, 43, (3) amendments to defined contribution
plans pursuant to Rev. Proc. 94–41, 1994–1 C.B. 711, in connection with a waiver of the

2000–1 I.R.B.

163

January 3, 2000

minimum funding standard and a request for a determination letter (See section 15 of Rev.
Proc. 2000–6, page 187, this Bulletin, and section 3.04 of Rev. Proc. 94–41), (4) termination/reestablishment and spinoff-termination cases in which EP Examinations or Determinations proposes that the Implementation Guidelines are not applicable, (5) a situation in
which the employer has had a prior termination/reestablishment or spinoff-termination
within 15 years of the time of the transaction or (6) any determination letter case or any
examination case involving a plan amendment to convert an existing defined benefit formula to a cash balance type benefit formula that was not previously subject to technical
advice on the conversion.
.05 In the instance of section 4.04(6) above, the requirements of the first sentence of section 10.01 below will be deemed met by the Service by the use of the following (or similar) statement: Technical advice is requested on the effect on the plan’s qualified status of
the conversion of an existing defined benefit plan formula to a cash balance type benefit
formula.
SECTION 5. ON WHAT
ISSUES MUST TECHNICAL
ADVICE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?
Matters (other than farmers’
cooperatives) under the
jurisdiction of the Associate
Chief Counsel (Domestic), the
Associate Chief Counsel
(Employee Benefits and Exempt
Organizations), and the Associate
Chief Counsel (International)

.01 All procedures for obtaining technical advice on issues (other than farmers’ cooperatives) under the jurisdiction of the Associate Chief Counsel (Domestic), the Associate
Chief Counsel (Employee Benefits and Exempt Organizations), and the Associate Chief
Counsel (International) including any matter pertaining to tax-exempt bonds or mortgage
credit certificates, § 526 of the Code (shipowners’ protection and indemnity associations),
§ 528 (certain homeowners’ associations) and 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. 2000–2.

Alcohol, tobacco,
and firearms taxes

.02 Procedures for obtaining technical advice specifically applicable to federal alcohol,
tobacco, and firearms taxes under subtitle E of the Code are under the jurisdiction of the
Bureau of Alcohol, Tobacco and Firearms.

Excise taxes

.03 Technical advice procedures 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, are set forth in Rev. Proc. 2000–2.

SECTION 6. MAY TECHNICAL
ADVICE BE REQUESTED FOR
A § 301.9100–1 REQUEST
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,
requests for an extension of time for making an election or other application for relief
under § 301.9100–1 of the Procedure and Administration Regulations made after the examination of the taxpayer’s return has begun or made after the issues in the return are
being considered by an appeals office or a federal court are letter ruling requests. Therefore, § 301.9100–1 requests should be submitted pursuant to Rev. Proc. 2000–4, page 115,
this Bulletin, and require payment of the applicable user fee listed in section 6 of Rev.
Proc. 2000–8.

Statute of limitations

.02 The running of any applicable period of limitations is not suspended for the period
during which a § 301.9100–1 request has been filed. See § 301.9100–3(d)(2). If the period of limitations on an assessment under § 6501(a) for the taxable year in which an election should have been made, or any taxable year that would have been affected by the

January 3, 2000

164

2000–1 I.R.B.

election had it been timely made, will expire before receipt of a § 301.9100–1 letter ruling,
the Service ordinarily will not issue a § 301.9100–1 ruling. See § 301.9100–3(c)(1)(ii).
Therefore, the taxpayer must secure a consent under § 6501(c)(4) to extend the period of
limitations on assessment. Note that the filing of a protective claim for refund under §
6511 does not extend the period of limitations on assessment. If § 301.9100–1 relief is
granted, the Service may require the taxpayer to consent to an extension of the period of
limitations for assessment. See § 301.9100–3(d)(2).
Address to send a
§ 301.9100–1 request

.03 Requests made under § 301.9100–1, pursuant to Rev. Proc. 2000–4, together with
the appropriate user fee, must be submitted to the Internal Revenue Service by the taxpayer and addressed as follows:
Requests involving employee plans matters:
Internal Revenue Service
Commissioner, Tax Exempt and Government Entities
Attn: T:EP:RA
P.O. Box 14073
Ben Franklin Station
Washington, DC 20044
Requests involving exempt organization matters:
Internal Revenue Service
Commissioner, Tax Exempt and Government Entities
Attn: T:EO:RA
P.O. Box 120
Ben Franklin Station
Washington, DC 20044
A § 301.9100–1 request may also be hand delivered between the hours of 8:15 a.m. and
5:00 p.m. to:
Courier’s Desk
Internal Revenue Service
Commissioner, Tax Exempt and Government Entities
Attn: T:EP:RA
or
Attn: T:EO:RA
1111 Constitution Avenue, N.W.
Washington, DC
A receipt will be given at the courier’s desk. In each instance, the package should be
marked: RULING REQUEST SUBMISSION. See Rev. Proc. 2000–8 for the appropriate
user fee.

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, chief, appeals office
or government counsel

2000–1 I.R.B.

.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. 2000–4. EP or EO
Technical will notify the appropriate EP or EO Examinations Area manager, chief appeals
office, or government counsel considering the return that a request for § 301.9100–1 relief
has been submitted. The EP or EO specialist, appeals officer or government counsel is not
authorized to deny consideration of a request for § 301.9100–1 relief. The letter ruling
will be mailed to the taxpayer and a copy will be sent to the appropriate EP or EO Examinations Area Manager, chief, appeals office, or government counsel.

165

January 3, 2000

SECTION 7. WHO IS
RESPONSIBLE FOR
REQUESTING TECHNICAL
ADVICE?
EP or EO Examinations Area
manager or EP or EO
Determinations manager or
chief, appeals office determines
whether to request technical advice

.01 The EP or EO Examinations Area manager, EP or EO Determinations manager or
chief, appeals office, determines whether to request technical advice on any issue being
considered. 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, EP or EO
Determinations manager or chief, appeals office. The mandatory technical advice described in section 4.04(3) 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 for a determination letter, is treated as if it had been a request for technical
advice submitted by the EP Determinations manager. See section 15 of Rev. Proc. 2000–6
and section 3.04 of Rev. Proc. 94–41 for the procedural rules applicable to this particular
mandatory technical advice.

Taxpayer may ask that issue
be referred for technical advice

.02 While a case is under the jurisdiction of EP or EO Examinations, EP or EO Determi
nations, or chief, appeals office a taxpayer may request that an issue be referred to the EP
or EO Technical office for technical advice.

SECTION 8. WHEN SHOULD
TECHNICAL ADVICE BE
REQUESTED?
Uniformity of position lacking

.01 Technical advice 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 technical advice
can be requested

.02 The provisions of this revenue procedure apply only to a case under the jurisdiction
of EP or EO Examinations, EP or EO Determinations or chief, appeals office. Technical
advice 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.
EP or EO Examinations or EP or EO Determinations may not request technical advice 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 a member of an affiliated
group of which the taxpayer is also a member within the meaning of § 1504). A case remains under the jurisdiction of EP or EO Examinations or EP or EO Determinations even
though an appeals office has the identical issue under consideration in the case of another
taxpayer (not related within the meaning of § 267 or § 1504) in an entirely different transaction. With respect to the same taxpayer or the same transaction, when the issue is under
the jurisdiction of an appeals office, and the applicability of more than one kind of federal
tax is dependent upon the resolution of that issue, EP or EO Examinations or EP or EO
Determinations may not request technical advice on the applicability of any of the taxes
involved.
EP or EO Examinations or EP or EO Determinations or chief, appeals office, also 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 the
same taxpayer (or for a related taxpayer or a member of an affiliated group of which the
taxpayer is also a member) for any taxable year.

At the earliest possible stage

January 3, 2000

.03 Once an issue is identified, all requests for technical advice should be made at the
earliest possible stage in any proceeding. The fact that the issue is raised late in the exam-

166

2000–1 I.R.B.

ination, determination or appeals process should not influence, however, the EP or EO Examinations, EP or EO Determinations or chief, appeals office’s decision to request technical advice.
SECTION 9. HOW ARE
PRE-SUBMISSION
CONFERENCES
SCHEDULED?
Pre-submission conference
generally is permitted when
request for technical
advice is likely and all
parties agree to
request the conference

.01 In an effort to promote expeditious processing of requests for technical advice,
EP or EO Technical generally will meet with the EP or EO Examinations or EP or EO Determinations or appeals office and the taxpayer prior to the time a request for technical advice is
submitted to EP or EO Technical. In cases involving very complex issues, the EP or
EO Examinations or EP or EO Determinations or appeals office and the taxpayer are
encouraged to request a pre-submission conference. A request for a pre-submission conference should be made, however, only after the EP or EO Examinations or EP or EO Determinations or appeals office determines that it will likely request technical advice and
only after all parties agree that a pre-submission conference should be requested.

Purpose of pre-submission
conference

.02 A pre-submission conference is intended to facilitate agreement between the parties
as to the appropriate scope of the request for technical advice, the factual information to be
included in the request for technical advice, any collateral issues that either should or
should not be included in the request for technical advice, and any other substantive or
procedural considerations that will allow EP or EO Technical to provide the parties with
technical advice as expeditiously as possible.
A pre-submission conference is not intended to create an alternate procedure for determining the merits of the substantive positions advocated by the EP or EO Examinations or
EP or EO Determinations or appeals office or by the taxpayer. The conference is intended
only to facilitate the overall technical advice process.

Request for presubmission
conference must be submitted
in writing by EP or EO
Examinations or EP or EO
Determinations or appeals office

.03 A request for a pre-submission conference must be submitted in writing by the EP or
EO Examinations or EP or EP Determinations or appeals office. The request should
identify the office expected to have jurisdiction over the request for technical advice.
The request should include a brief explanation of the primary issue so that an assignment
to the appropriate group can be made.
An original and one copy of the request should be submitted to the appropriate address
listed in section 10.06 of this revenue procedure.

Group will contact the EP or EO
Examinations or EP or EO
Determinations or 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 EP or EO Determinations or appeals office to arrange a mutually convenient time
for the parties to meet in the EP or EO Technical office. The conference generally should
be held within 30 calendar days after the EP or EO Examinations or EP or EO Determinations or appeals office is contacted. The EP or EO Examinations or EP or EO Determinations or 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 EP or
EO Determinations or appeals office believes would be appropriate.

Pre-submission conference
generally held in person

.05 Pre-submission conferences generally will be held in person in EP or EO Technical. However, if the EP or EO Examinations or EP or EO Determinations or appeals office
personnel are unable to attend the conference, the conference may be conducted by telephone.

Certain information required
to be submitted to the EP or EO
Technical prior to the pre-

.06 At least 10 working days before the scheduled pre-submission conference, the EP or
EO Examinations or EP or EO Determinations or appeals office and the taxpayer should
submit to EP or EO Technical a statement of the pertinent facts (including any facts in

2000–1 I.R.B.

167

January 3, 2000

submission conference

dispute), a statement of the issues that the parties would like to discuss, and 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 technical advice, but it should
allow EP or EO Technical to become reasonably informed regarding the subject matter of
the conference prior to the meeting. The EP or EO Examinations or EP or EO Determinations or the appeals office or the taxpayer should ensure that EP or EO Technical office receives a copy of any required power of attorney, preferably on Form 2848, Power of Attorney and Declaration of Representative.

Pre-submission conference
may not be taped

.07 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

.08 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).

SECTION 10. WHAT MUST
BE INCLUDED IN THE
REQUEST FOR TECHNICAL
ADVICE?
Statement of issues, facts,
law, and arguments

.01 Whether initiated by the taxpayer or by an EP or EO Examinations or EP or EO Determinations or appeals office, a request for technical advice must include the facts and the
issues for which technical advice is requested, and a written statement clearly stating 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 technical
advice

(1) If the taxpayer initiates the request for technical advice, the taxpayer must submit to
the EP or EO specialist or appeals officer, 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 appeals officer determines that technical advice will be requested, the taxpayer’s statement will be forwarded to EP or EO Technical with the request for technical advice.

Taxpayer is encouraged to
submit statement if Service
initiates request for technical
advice

(2) If the request for technical advice is initiated by an EP or EO Examinations
or EP or EO Determinations or appeals office, the taxpayer is encouraged to submit the
written statement described in section 10.01(1) of the revenue procedure. If the taxpayer’s
statement is received after the request for technical advice has been forwarded to EP or EO
Technical, the statement will be forwarded to EP or EO Technical for association with the
technical advice request.

Statement of authorities
contrary to taxpayer’s position

(3) Whether the request for technical advice is initiated by the taxpayer or by an EP
or EO Examinations or EP or EO Determinations or appeals office, the taxpayer is also 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 deter-

January 3, 2000

168

2000–1 I.R.B.

mines that there are no contrary authorities, a statement to this effect would be helpful. If
the taxpayer does not furnish either contrary authorities or a statement that none exists, the
Service, in complex cases or those presenting difficult or novel issues, may request submission of contrary authorities or a statement that none exists.
Statement pertaining to
statute of limitations

.02 As part of the request, the EP or EO Examinations or EP or EO Determinations or
appeals office must submit a statement, in addition to the criteria on Form 5565 referred to
below, that (1) the applicable statute of limitations has at least 180 calendar days to run before its expiration or (2) the applicable statute of limitations will run prior to 180 calendar
days from the date a request is transferred to EP or EO Technical and the case should be
processed on an expedited basis. If the EP or EO Examinations or EP or EO Determinations or appeals office obtains an extension of the statute of limitations while the request is
being processed in EP or EO Technical, the office obtaining the extension must also submit a revised statement to EP or EO Technical advising it of the new expiration date.
If there are less than 61 calendar days remaining before the expiration of the statute of
limitations with respect to a case being processed on an expedited basis, the case will be
returned to the office responsible for statute control of the file unless a decision is made
pursuant to section 121.2 of the Internal Revenue Manual that the case can be timely
processed. EP or EO Technical will telephone (or fax notice of) its decision to the requesting EP or EO Examinations or EP or EO Determinations or appeals office and will place a
memorandum in the file to reflect whatever procedural steps have been taken.

General provisions of
§§ 6104 and 6110

.03 Generally, § 6104(a)(1)(B) provides that an application filed with respect to: (1) the
qualification of a pension, profit-sharing, or stock bonus plan under § 401(a) or § 403(a)
or an individual retirement arrangement under § 408(a) or § 408(b) will be open to public
inspection pursuant to regulations as will (2) any application filed for an exemption from
tax under § 501(a) of an organization forming part of a plan or account described above.
Generally, § 6110(a) provides that except as provided otherwise, written determinations
(defined in § 6110(b)(1) as rulings, determination letters, and technical advice memorandums) and any related background file document will be open to public inspection pursuant to regulations.

Application of § 6104

.04 The requirements for submitting statements and other materials or proposed deletions in technical advice memorandums 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

.05 The text of a technical advice memorandum subject to § 6110 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 11.05 of this revenue procedure.
A taxpayer who wants only names, addresses, and identifying numbers deleted should
state this in the deletions statement. If the taxpayer wants more information deleted, the
deletions statement must be accompanied by a copy of the technical advice 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 technical advice memorandum is issued, additional deletions statements may be submitted.
The deletions statement must not appear in the request for technical advice but, instead,
must be made in a separate document attached to the request.
The deletions statement must be signed and dated by the taxpayer or the taxpayer’s authorized representative. A stamped signature is not permitted.

2000–1 I.R.B.

169

January 3, 2000

The taxpayer should follow these same procedures to propose deletions from any additional information submitted after the initial request for technical advice. 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 the same information deleted
from the additional information.
Transmittal Form 5565,
Request for Technical
Advice - EP/EO

.06 The EP or EO Examinations or EP or EO Determinations or appeals office should
use Form 5565, Request for Technical Advice - EP/EO, for transmitting a request for
technical advice to EP or EO Technical using the addresses listed below.

Address to send requests
from EP or EO Examinations
or EP or EO Determinations

Employee Plans
Internal Revenue Service
Attn: T:EP:RA:T
1111 Constitution Ave., NW
Room 6052
Washington, DC 20224
Exempt Organizations
Internal Revenue Service
Attn: T:EO:RA:T
1111 Constitution Ave., NW
Room 6052
Washington, DC 20224

Address to send requests
from appeals offices

Internal Revenue Service
Attn: C:AP
Franklin Court Building
1099 14th Street, NW
Washington, DC 20005

Number of copies of
request to be submitted

.07 The EP or EO Examinations or EP or EO Determinations or the appeals office must
submit (3) three copies of the request for technical advice to EP or EO Technical.

Power of attorney

.08 Any authorized representative, as described in section 9.02 of Rev. Proc. 2000–4,
whether or not enrolled to practice, must comply with Treasury Department Circular No.
230 (31 CFR part 10 (1998)) and with the conference and practice requirements of the
Statement of Procedural Rules (26 CFR part 601). It is preferred that Form 2848, Power
of Attorney and Declaration of Representative, be used with regard to requests for technical advice under this revenue procedure.

Case files

.09 The EP or EO Examinations or EP or EO Determinations or appeals office will submit copies of the original documents (the administrative file) to EP or EO Technical accompanying the applicable Form 5565. The EP or EO Examinations or EP or EO Determinations or appeals office will maintain the original documents (including any power of
attorney).

SECTION 11. HOW ARE
REQUESTS HANDLED?
Taxpayer notified

January 3, 2000

.01 Regardless of whether the taxpayer or the Service initiates the request for technical
advice, the EP or EO Examinations or EP or EO Determinations or appeals office: (1) will
notify the taxpayer that technical advice is being requested; and (2) at or before the time
the request is submitted to EP or EO Technical, will give to the taxpayer a copy of the arguments that are being provided to EP or EO Technical in support of its position.
If the EP or EO specialist or appeals officer initiates the request for technical advice, he
or she will give to the taxpayer a copy of the statement of the pertinent facts and the issues

170

2000–1 I.R.B.

proposed for submission to EP or EO Technical.
This section 11.01 does not apply to a technical advice memorandum described in section
11.06 of this revenue procedure.
Conference offered

.02 When notifying the taxpayer that technical advice is being requested, the EP or EO
specialist or appeals officer 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

.03 If the EP or EO specialist or appeals officer initiates the request for technical advice,
the taxpayer has 10 calendar days after receiving the statement of facts and specific issues
to submit to that specialist or officer 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 EP or EO Determinations manager or the
chief, appeals office.
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 EP or EO Determinations or appeals office will notify the taxpayer in writing. Within 10 calendar days after receiving the written notice, the taxpayer may submit a
statement of the taxpayer’s understanding of the facts and the specific points at issue. A
taxpayer who needs more than 10 calendar days to prepare the statement of understanding
must justify, in writing, the request for an extension of time. The extension is subject to
the approval of the EP or EO Examinations Area manager or EP or EO Determinations
manager or the chief, appeals office. 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 technical advice.
When EP or EO Examinations or EP or EO Determinations or the chief, appeals office,
and the taxpayer cannot agree on the material facts and the request for technical advice
does not involve the issue of whether a letter ruling or determination letter should be modified or revoked, EP or EO Technical, at its discretion, may refuse to provide technical advice. If EP or EO Technical chooses to issue technical advice, 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 technical advice involves the issue of whether a letter ruling or determination letter should be modified or revoked, EP or EO Technical will issue the technical
advice.

If the Service disagrees with
the taxpayer’s statement
of facts

.04 If the taxpayer initiates the action to request technical advice, and the taxpayer’s
statement of the facts and issues is not wholly acceptable to the EP or EO Examinations
or EP or EO Determinations or appeals office, the Service will notify the taxpayer in writing of the areas of disagreement. The taxpayer has 10 calendar days after receiving the
written notice to reply to it. A taxpayer who needs more than 10 calendar days must justify in writing the request for an extension of time. The extension is subject to the approval of the EP or EO Examinations Area manager, or EP or EO Determinations manager
or the chief, appeals office.
If an agreement cannot be reached, 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 technical advice. When the disagreement involves material
facts essential to the preliminary assessment of the case, the EP or EO Examinations Area
manager, EP or EO Determinations manager or the chief, appeals office, may refuse to
refer a taxpayer initiated request for technical advice to EP or EO Technical.

2000–1 I.R.B.

171

January 3, 2000

If the EP or EO Examinations or EP or EO Determinations or chief, appeals office, submits a case involving a disagreement of material facts, EP or EO Technical, at its discretion, may refuse to provide technical advice. If EP or EO Technical chooses to issue technical advice, it will base its advice on the facts provided by the EP or EO Examinations or
EP or EO Determinations or appeals office.
If the taxpayer has not
submitted the required
deletions statement

.05 When the EP or EO Examinations or EP or EO Determinations or appeals office
initiates the request for technical advice, 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 10.05 of this revenue procedure). In such a case, if the taxpayer does not
submit the deletions statement, the EP or EO Examinations or EP or EO Determinations or
the appeals office, will tell the taxpayer that the statement is required.
When the taxpayer initiates the request for technical advice and does not submit with the
request a deletions statement as required by § 6110, the EP or EO Examinations or EP or
EO Determinations or chief, appeals office, will ask the taxpayer to submit the statement.
If the EP or EO Examinations or EP or EO Determinations or chief, appeals office, does
not receive the deletions statement within 10 calendar days after asking the taxpayer for it,
the EP or EO Examinations or EP or EO Determinations or chief, appeals office, may decline to submit the request for technical advice.
However, if the EP or EO Examinations or EP or EO Determinations or chief, appeals office, decides to request technical advice, whether initiated by the EP or EO Examinations
or EP or EO Determinations or appeals office or by the taxpayer, in a case in which the
taxpayer has not submitted the deletions statement, EP or EO Technical will make those
deletions that the Commissioner of Internal Revenue determines are required by §
6110(c).

Criminal or civil fraud cases

.06 The provisions of this section (about referring issues upon the taxpayer’s request, obtaining the taxpayer’s statement of the areas of disagreement, telling the taxpayer about
the referral of issues, giving the taxpayer a copy of the arguments submitted, submitting
proposed deletions, and granting conferences in EP or EO Technical) do not apply to a
technical advice memorandum 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 technical advice memorandum is given to the taxpayer after
all proceedings in the investigations or assessments are complete, but before the Service
mails the notice of intention to disclose the technical advice memorandum under §
6110(f)(1). The taxpayer may then provide the statement of proposed deletions to EP or
EO Technical.

SECTION 12. HOW DOES
A TAXPAYER APPEAL AN
EP OR EO MANAGER’S
OR A CHIEF’S APPEALS
OFFICE DECISION NOT
TO SEEK TECHNICAL
ADVICE?
Taxpayer notified of decision
not to seek technical advice

January 3, 2000

.01 If the EP or EO specialist or appeals officer concludes that a taxpayer’s request for
referral of an issue to EP or EO Technical for technical advice does not warrant referral,
the EP or EO specialist or appeals officer 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 EP or EO Determinations or appeals office on the matter.

172

2000–1 I.R.B.

Taxpayer may appeal decision
not to seek technical advice

.02 The taxpayer may appeal the decision of the EP or EO specialist or the appeals officer
not to request technical advice. To do so, the taxpayer must submit to that specialist or officer, within 10 calendar days after being told of the decision, a written statement of the
facts, law, and arguments on the issue and the reasons why the taxpayer believes the matter should be referred to EP or EO Technical for technical advice. 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
EP or EO Determinations manager or the chief, appeals office.

EP or EO Examinations
Area manager or EP or EO
Determinations manager office
or chief, appeals office
determines whether

.03 The EP or EO specialist or the appeals officer submits the taxpayer’s statement
through proper channels to the EP or EO Examinations Area manager or EP or EO Determinations manager or the chief, appeals office, along with the EP or EO specialist’s
or the appeals officer’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 technical advice will be requested.
If the manager or chief determines that technical advice is not warranted and proposes to
deny the request, the taxpayer is told in writing about the determination. In the letter to
the taxpayer, the manager or chief states the reasons for the proposed denial (except in unusual situations when doing so would be prejudicial to the best interests of the Government). The taxpayer has 10 calendar days after receiving the letter to notify the manager
or chief of agreement or disagreement with the proposed denial.

Manager or Chief’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 EP or EO Determinations manager or the chief, appeals office, not to request technical
advice from EP or EO Technical. However, if the taxpayer does not agree with the proposed denial, all data on the issue for which technical advice 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 National Director of Appeals as appropriate.
The Commissioner, Tax Exempt and Government Entities Division through the Director,
Employee Plans, or the Director, Exempt Organizations or, if appropriate, the National Director of Appeals will review the proposed denial solely on the basis of the written record,
and no conference will be held with the taxpayer or the taxpayer’s representative. The appropriate Director or his or her representative may consult with EP or EO Technical and
the Office of Chief Counsel, if necessary, and will notify the EP or EO Examinations or
EP or EO Determinations or appeals office within 45 calendar days of receiving all the
data regarding the request for technical advice whether the proposed denial is approved or
disapproved. The EP or EO Examinations or EP or EO Determinations or appeals office
will then notify the taxpayer.
While the matter is being reviewed, the EP or EO Examinations or EP or EO Determinations office or the appeals office suspends action on the issue (except when the delay
would prejudice the Government’s interest).
The provisions of this revenue procedure regarding review of the proposed denial of a request for technical advice continue to be applicable in those situations in which the authority normally exercised by the EP or EO Examinations Area manager, EP or EO Determinations manager, or chief, appeals office, has been delegated to another official.

SECTION 13. HOW ARE
REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN?
Taxpayer notified

2000–1 I.R.B.

.01 Once a request for technical advice has been sent to EP or EO Technical, only an EP
or EO Examinations Area manager, EP or EO Determinations manager or a chief, appeals
office, may withdraw a request for technical advice. He or she may ask to withdraw a re-

173

January 3, 2000

quest at any time before the responding transmittal memorandum transmitting the technical advice is signed.
The EP or EO Examinations Area manager, EP or EO Determinations manager or the
chief, appeals office, as appropriate, must notify the taxpayer in writing of an intent to
withdraw the request for technical advice except (1) when the period of limitations on assessment is about to expire and the taxpayer has declined to sign a consent to extend the
period, or (2) when such notification would be prejudicial to the best interests of the Government.
If the taxpayer does not agree that the request for technical advice should be withdrawn,
the procedures in section 12 of this revenue procedure must be followed.
EP or EO Technical
may provide views

.02 When a request for technical advice is withdrawn, EP or EO Technical may send
its views to the EP or EO Examinations or EP or EO Determinations or chief, appeals office, when acknowledging the withdrawal request. In an appeals case, acknowledgment of
the withdrawal request should be sent to the appropriate appeals office, through the National Director of Appeals, C:AP. In appropriate cases, the subject matter may be published as a revenue ruling or as a revenue procedure.

SECTION 14. HOW ARE
CONFERENCES
SCHEDULED?
If requested, offered to the
taxpayer when adverse
technical advice proposed

.01 If, after the technical advice request is analyzed, it appears that technical advice
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.

Normally held within 21 days
of contact with the taxpayer

.02 The conference must be held within 21 calendar days after the taxpayer is contacted.
If conferences are being arranged for more than one request for technical advice for the
same taxpayer, they will be scheduled to cause the least inconvenience to the taxpayer. If
considered appropriate, EP or EO Technical will notify the EP or EO specialist or appeals
officer of the scheduled conference and will offer the EP or EO specialist or appeals officer the opportunity to attend the conference. The Commissioner, Tax Exempt and Government Entities Division, the National Director of Appeals, EP or EO Examinations Area
manager, EP or EO Determinations manager, or the chief, appeals office may designate
other Service representatives to attend the conference in lieu of, or in addition to, the EP or
EO specialist or the appeals officer.

21-day period may be
extended if justified and
approved

.03 An extension of the 21-day period will be granted only if the taxpayer justifies it in
writing, and the group manager (or his or her delegate) of the office to which the case is
assigned approves it. No extension will be granted without the approval of the group
manager (or his or her delegate). 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 request for an extension must be submitted before the end of the 21-day period, and
should be submitted sufficiently before the end of this period to allow EP or EO Technical
to consider, and either approve or deny, the request before the end of the 21-day period. If
unusual circumstances near the end of the period make a timely written request impractical, EP or EO Technical should be told orally before the end of the period about the problem and about the forthcoming written request for an extension. The written request for an
extension must be submitted to EP or EO Technical promptly after the oral request. The
taxpayer will be told promptly (and later in writing) of the approval or denial of the requested extension.

Denial of extension
cannot be appealed

January 3, 2000

.04 There is no right to appeal the denial of a request for an extension. If EP or EO
Technical is not advised of problems with meeting the 21-day period, or if the written re-

174

2000–1 I.R.B.

quest is not sent promptly after EP or EO Technical is notified of problems with meeting
the 21-day period, the case will be processed on the basis of the existing record.
Entitled to one
conference of right

.05 A taxpayer is entitled by right to only one conference in EP or EO Technical unless
one of the circumstances discussed in section 14.09 of this revenue procedure exists. This
conference is normally held at the group level in EP Technical or EO Technical, whichever
is appropriate. It is attended by a person who has authority to sign the transmittal memorandum discussed in section 16.13 on behalf of the group manager.
When more than one group has taken an adverse position on an issue in the request, or
when the position ultimately adopted by one group will affect another group’s determination, a representative from each group with authority to sign for the group manager will attend the conference. If more than one subject is discussed at the conference, the discussion constitutes the conference of right for each subject discussed.
To have a thorough and informed discussion of the issues, the conference usually is held
after the group has had an opportunity to study the case. However, the taxpayer may request that the conference of right be held earlier in the consideration of the case than the
Service would ordinarily designate.
The taxpayer has no right to appeal the action of a group to any other Service official.
But see section 14.09 for situations in which the Service may offer additional conferences.

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 taxpayer can prepare and submit a brief requesting
relief under § 7805(b) (discussed in section 19 of this revenue procedure). The group
manager (or his or her delegate) of the office to which the case is assigned will determine
whether to grant or deny the request for delaying the conference. If such request is
granted, the Service will schedule a conference on the tentatively adverse position and the
§ 7805(b) relief request within 10 days of receiving the taxpayer’s § 7805(b) request. See
section 19.06 of this revenue procedure for the conference procedures if the § 7805(b) request is made after the conference on the substantive issues has been held.

Service makes tentative
recommendations

.08 The senior Service representative at the conference ensures that the taxpayer has full
opportunity to present views on all the issues in question. The Service representatives explain the tentative decision on the substantive issues and the reasons for it.
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 for the tentative recommendation.
No commitment will be made as to the conclusion that the Service will finally adopt regarding the outcome of the § 7805(b) issue or on any other issue discussed.

Additional conferences
may be offered

.09 The Service will offer the taxpayer an additional conference if, after the conference
of right, an adverse holding is proposed on a new issue or on the same issue but on
grounds different from those discussed at the first conference.
When a proposed holding is reversed at a higher level with a result less favorable to the
taxpayer, the taxpayer has no right to another conference if the grounds or arguments on
which the reversal is based were discussed at the conference of right.
The limitation on the number of conferences to which a taxpayer is entitled does not prevent EP or EO Technical from inviting a taxpayer to attend additional conferences, including conferences with an official higher than the group level, if EP or EO Technical person-

2000–1 I.R.B.

175

January 3, 2000

nel think they are necessary. Such conferences are not offered as a matter of course simply because the group has reached an adverse decision. In general, conferences with
higher level officials are offered only if the Service determines that the case presents significant issues of tax policy or tax administration and that the consideration of these issues
would be enhanced by additional conferences with the taxpayer.
In accordance with section 14.02 of this revenue procedure, the EP or EO specialist or
appeals officer may be offered the opportunity to participate in any additional taxpayer’s
conference, including a conference with an official higher than the group level. Section
14.02 of this revenue procedure also provides that other Service representatives are allowed to participate in the conference.
Additional information
submitted after the conference

.10 Within 21 calendar days after the conference, the taxpayer must furnish to
EP or EO Technical, whichever is applicable, any additional data, lines of reasoning,
precedents, etc., that the taxpayer proposed and discussed at the conference but did not
previously or adequately present in writing. This 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.
The taxpayer must also send a copy of the additional information to the EP or EO Examinations or EP or EO Determinations or the chief, appeals office, for comment. Any comments must be furnished promptly to the appropriate group in EP or EO Technical. If the
EP or EO Examinations or EP or EO Determinations or the chief, appeals office, does not
have any comments, he or she must notify the group representative promptly.
If the additional information would have a significant impact on the facts in the request
for technical advice, EP or EO Technical will ask EP or EO Examinations or EP or EO Determinations or the chief, appeals office, for comments on the facts contained in the additional information submitted. The EP or EO Examinations or EP or EO Determinations or
the chief, appeals office, will give the additional information prompt attention.
If the additional information is not received from the taxpayer within 21 calendar days,
the technical advice memorandum will be issued on the basis of the existing record.
An extension of the 21-day period 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
Services’s decision are the same as those in sections 14.03 and 14.04 of this revenue procedure.

Under limited circumstances,
may schedule a conference to
be held by telephone

.11 Infrequently, taxpayers 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 does not warrant the expense of traveling to Washington, DC. If a
taxpayer makes such a request, the group manager, or his or her delegate of the group to
which the case is assigned, will decide if it is appropriate in the particular case to hold the
conference of right by telephone. If the request is approved, the taxpayer will be advised
when to call the Service representatives (not a toll-free call).
In accordance with section 14.02 of this revenue procedure, the EP or EO specialist or
appeals officer will be offered the opportunity to participate in the telephone conference.
Section 14.02 of this revenue procedure also provides that other Service representatives
are allowed to participate in the conference.

SECTION 15. HOW IS
STATUS OF REQUEST

January 3, 2000

176

2000–1 I.R.B.

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 technical advice by contacting the EP or EO Examinations or EP or EO
Determinations or appeals office that requested the technical advice. See section 16.08 of
this revenue procedure concerning the time for discussing the tentative conclusion
with the taxpayer’s representative. See section 17.02 of this revenue procedure regarding
discussions of the contents of the technical advice memorandum 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
chief, appeals office

.02 The group representative or manager to whom the technical advice request is
assigned will give status updates on the request once a month to the EP or EO Examination
Area manager or EP or EO Determinations manager or chief, appeals office. In addition, an
EP or EO Examinations Area manager or EP or EO Determinations manager or chief,
appeals office, may get current information on the status of the request for technical advice by calling the person whose name and telephone number are shown on acknowledgment of receipt of the request for technical advice.
See section 16.09 of this revenue procedure about discussing the final conclusions with
the EP or EO Examinations or EP or EO Determinations or appeals office. Further, EP or
EO Examinations or EP or EO Determinations or the chief, appeals office will be notified
at the time the technical advice memorandum is mailed.

SECTION 16. HOW DOES
THE EP OR EO TECHNICAL
PREPARE THE TECHNICAL
ADVICE MEMORANDUM?
Delegates authority to
group managers

.01 The authority to issue technical advice 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 Guidance and Quality Assurance Technical (collectively referred to as “EP
Technical”); and of the Exempt Organizations Rulings & Agreements Technical groups,
Guidance and Quality Assurance Technical and Projects (collectively referred to as “EO
Technical”)

Determines whether request
has been properly made

.02 A request for technical advice generally is given priority and processed expeditiously. As soon as the request for technical advice 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 10.05 of this
revenue procedure relating to the deletions statement, the Service will follow the procedure in the last paragraph of section 11.05 of this revenue procedure.

Contacts the EP or EO
Examinations, or EP or EO
Determinations or appeals
office to discuss issues

.03 Usually, within 21 calendar days after the group receives the request for technical
advice, a representative of the group telephones the EP or EO Examinations or EP or EO
Determinations or appeals office to discuss the procedural and substantive issues in the request that come within the group’s jurisdiction.

Informs the EP or EO
Examinations or EP or EO
Determinations or appeals office
if any matters in the request have
been referred to another group
or office

.04 If the technical advice request concerns matters within the jurisdiction of more than
one group or office, a representative of the group that received the original technical
advice request generally informs the EP or EO Examinations or EP or EO Determinations
or appeals office within 21 calendar 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

2000–1 I.R.B.

177

January 3, 2000

(2) a representative of the other group or office will contact the EP or EO Examinations
or EP or EO Determinations or appeals office about the referral of the technical advice request within 21 calendar days after receiving it in accordance with section 16.03 above.
Informs the EP or EO
Examinations or EP or EO
Determinations or appeals
office if additional information
is needed

.05 The group representative will inform the EP or EO Examinations or EP or EO Determinations or appeals office that the case is being returned if substantial additional information is required to resolve an issue.Cases should be returned for additional infor
mation when significant unresolved factualvariances exist between the statement of facts
submitted by the EP or EO Examinations, or EP or EO Determinations or appeals office
and the taxpayer. They should also be returned if major procedural problems cannot be resolved by telephone. The EP or EO Examinations or EP or EO Determinations or appeals
office should promptly notify the taxpayer of the decision to return the case for further
factual development or other reasons.
If only minor procedural deficiencies exist, the group will request the additional information in the most expeditious manner without returning the case.

Informs the EP or EO
Examinations or EP or EO
Determinations or appeals office
of the tentative conclusion

.06 If all necessary information has been provided, the group representative discusses
with the EP or EO Examinations or EP or EO Determinations or appeals office 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 or EP or EO Determinations
or 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
preparation and review of the technical advice memorandum, the tentative conclusion
should not be considered final. Therefore, neither the group representative nor the EP or
EO Examinations or EP or EO Determinations or appeals office should advise the tax
payer or the taxpayer’s representative of the tentative conclusion before the scheduling 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 officer of EP or EO Technical’s final conclusions. The EP or EO specialist or
the appeals officer should be offered the opportunity to discuss the issues and EP or EO
Technical’s final conclusions before the technical advice memorandum is issued.

If needed, requests
additional information

.10 If, following the initial contact referenced in section 16.03 of this revenue procedure,
it is determined, after discussion with the appropriate group manager or reviewer, that additional information is needed, a group representative will obtain the additional information from the taxpayer, EP or EO Examinations or EP or EO Determinations or the chief,
appeals office, in the most expeditious manner possible. Any additional information requested from the taxpayer by EP or EO Technical must be submitted by letter with a
penalties of perjury statement within 21 calendar days after the request for information is
made.

Penalties of perjury statement

Additional information submitted to EP or EO Technical must be accompanied by the
following declaration: “Under penalties of perjury, I declare that I have examined
this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request,
for the information and such facts are true, correct, and complete.” This declaration
must be signed and dated by the taxpayer, not the taxpayer’s representative. A stamped
signature is not permitted.
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 cir-

January 3, 2000

178

2000–1 I.R.B.

cumstances 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 of the 21-day period. No extension will be granted without the approval of the appropriate group manager (or his or her delegate). 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.
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 technical advice memorandum based on the
existing record.
Requests taxpayer to send
additional information to
EP or EO Technical and a copy to
the EP or EO Examinations or
EP or EO Determinations or
chief, appeals office

.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 either the EP or EO Examinations or EP or EO
Determinations or the chief, appeals office, for comment. Any comments must be furnished promptly to the appropriate group in EP or EO Technical. If EP or EO Examinations or EP or EO Determinations or the chief, appeals office, 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 technical advice, EP or EO Technical
informs the taxpayer orally or in writing of the material likely to appear in the technical
advice memorandum that the taxpayer proposed be deleted but that the Service has determined should not be deleted.
If so informed, the taxpayer may submit within 10 calendar days any further information
or other arguments supporting the taxpayer’s proposed deletions.
The Service will attempt to resolve all disagreements about proposed deletions before EP
or EO Technical replies to the request for technical advice. 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 technical advice memorandum. 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 technical advice request is 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. In unusual cases, it is a way of
giving the EP or EO Examinations or EP or EO Determinations or appeals office administrative or other information that under the nondisclosure statutes or for other reasons may
not be discussed with the taxpayer.
The second part is the technical advice memorandum, which contains—
(1) a statement of the issues;
(2) a statement of the facts pertinent to the issues;
(3) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other
precedents published in the Internal Revenue Bulletin, and court decisions;
(4) a discussion of the rationale underlying the conclusions reached by EP or EO Technical; and

2000–1 I.R.B.

179

January 3, 2000

(5) 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 or EP or EO Determinations or 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 or EP or EO Determinations or appeals office
and may reframe the issues to be answered in the technical advice memorandum. The discussion 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 technical advice memorandum subject to § 6110, is a notice under §
6110(f)(1) of intention to disclose the technical advice memorandum (including a copy of
the version proposed to be open to public inspection and notations of third party communications under § 6110(d)).
Routes replies to
appropriate office

.14 Replies to requests for technical advice are addressed to the EP or EO Examinations
Area manager, EP or EO Determinations manager or the chief, appeals office. Replies to
requests from appeals should be routed to the appropriate appeals office through the National Director of Appeals, C:AP

SECTION 17. HOW DOES
AN EP OR EO EXAMINATION
OR EP OR EO
DETERMINATIONS OR AN
APPEALS OFFICE USE
THE TECHNICAL ADVICE?
Generally applies advice
in processing the
taxpayer’s case

.01 The EP or EO Examinations Area manager or EP or EO Determinations manager or
the chief, appeals office, must process the taxpayer’s case on the basis of the conclusions
in the technical advice memorandum unless—
(1) the EP or EO Examinations Area manager or EP or EO Determinations manager or
the chief, appeals office, decides that the conclusions reached by EP or EO Technical in a
technical advice memorandum should be reconsidered, or
(2) the chief, appeals office, in the case of technical advice 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 technical advice memorandum, EP or EO Examinations or EP or EO Determinations must follow the conclusions
in a technical advice memorandum as to all issues and the chief, appeals office, must follow the conclusions in a technical advice memorandum on issues of an
organization’s/plan’s status or qualification. Thus, if the technical advice memorandum
received by EP or EO Examinations or EP or EO Determinations concerns an organization’s/plan’s status or qualification, the organization/plan has no appeal to the appeals office on those specific issues.

Discussion with the taxpayer

.02 EP or EO Technical will not discuss the contents of the technical advice memorandum with the taxpayer or the taxpayer’s representative until the taxpayer has been given a
copy by the EP or EO Examinations or EP or EO Determinations or appeals office.

Gives copy to the taxpayer

.03 EP or EO Examinations or EP or EO Determinations or the chief, appeals office, only
after adopting the technical advice, gives the taxpayer (1) a copy of the technical advice memorandum described in section 16.13, and (2) the notice under § 6110(f)(1) of intention to disclose the technical advice memorandum (including a copy of the version proposed to be open
to public inspection and notations of third party communications under § 6110(d)).
This requirement does not apply to a technical advice memorandum involving a criminal

January 3, 2000

180

2000–1 I.R.B.

or civil fraud investigation, or a jeopardy or termination assessment, as described in section 11.06 of this revenue procedure, or documents to which § 6104 (document open to
public inspection) applies as described in section 10.03.
Taxpayer may protest
deletions not made

.04 After receiving the notice under § 6110(f)(1) of intention to disclose the technical
advice memorandum, the taxpayer may protest the disclosure of certain information in it.
The taxpayer must submit a written statement within 20 calendar days identifying those
deletions not made by the Service that the taxpayer believes should have been made. The
taxpayer must also submit a copy of the version of the technical advice memorandum 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 EP or EO Examinations or EP or EO Determinations or the chief,
appeals office. Within 20 calendar days after it receives the taxpayer’s response to the notice under § 6110(f)(1), EP or EO Technical must mail the taxpayer its final administrative
conclusion about the deletions to be made.

When no copy is given
to the taxpayer

.05 If EP or EO Technical tells EP or EO Examinations or EP or EO Determinations or
the chief, appeals office, that a copy of the technical advice memorandum should not be
given to the taxpayer and the taxpayer requests a copy, EP or EO Examinations or EP or
EO Determinations or the chief, appeals office, will tell the taxpayer that no copy will be
given

SECTION 18. WHAT IS THE
EFFECT OF TECHNICAL
ADVICE?
Applies only to the taxpayer
for whom technical advice
was requested

.01 A taxpayer may not rely on a technical advice memorandum issued by the Service
for another taxpayer.

Usually applies retroactively

.02 Except when stated otherwise, a holding in a technical advice memorandum is applied retroactively, unless the Commissioner, Tax Exempt and Government Entities Division exercises discretionary authority under § 7805(b) to limit the retroactive effect of the
holding. Section 18.06 below lists the criteria necessary for granting § 7805(b) relief, and
section 18 of this revenue procedure describes the effect of § 7805(b) relief.

Generally applied retroactively
to modify or revoke prior
technical advice

.03 A holding that modifies or revokes a holding in a prior technical advice memorandum 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 technical advice memorandum relates to a continuing action or a series of
actions, ordinarily it is applied until specifically withdrawn or until the conclusion is
modified or revoked by enactment of legislation, ratification of a tax treaty, a decision of
the United States Supreme Court, or the issuance of regulations (temporary or final), a
revenue ruling, or other statement published in the Internal Revenue Bulletin. Publication
of a notice of proposed rulemaking does not affect the application of a technical advice
memorandum.

Applies to continuing action
or series of actions until
material facts change

.05 A taxpayer is not protected against retroactive modification or revocation of a
technical advice memorandum involving a continuing action or a series of actions
occurring after the material facts on which the technical advice memorandum is based
have changed.

Does not apply retroactively
under certain conditions

.06 Generally, a technical advice memorandum that modifies or revokes a letter ruling
or another technical advice memorandum or a determination letter is not applied retroactively either to the taxpayer to whom or for whom the letter ruling or technical advice

2000–1 I.R.B.

181

January 3, 2000

memorandum or determination letter was originally issued, or to a taxpayer whose tax liability was directly involved in such letter ruling or technical advice memorandum or determination letter if—
(1) there has been no misstatement or omission of material facts;
(2) the facts at the time of the transaction are not materially different from the facts on
which the letter ruling or technical advice memorandum or determination letter was based;
(3) there has been no change in the applicable law;
(4) in the case of a letter ruling, it was originally issued on a prospective or proposed
transaction; and
(5) the taxpayer directly involved in the letter ruling or technical advice memorandum or
determination letter acted in good faith in relying on the letter ruling or technical advice
memorandum 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 technical advice memorandum or determination letter relating to
a pension plan of an employer is directly involved in the letter ruling or technical advice
memorandum or determination letter. However, the tax liability of members of an industry is not directly involved in a letter ruling or technical advice memorandum or determination letter issued to one of the members, and the holding in a modification or revocation
of a letter ruling or technical advice memorandum 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 technical advice memorandum or determination letter previously issued to another client.
When a letter ruling or determination letter to a taxpayer or a technical advice memorandum involving a taxpayer is modified or revoked with retroactive effect, the notice to the
taxpayer, except in fraud cases, sets forth the grounds on which the modification or revocation is being made and the reason why the modification or revocation is being applied
retroactively.
In order for a technical advice memorandum that modifies or revokes a letter ruling or
another technical advice memorandum or a determination letter not to be applied retroactively either to the taxpayer to whom or for whom the letter ruling, technical advice memorandum or determination letter was originally issued, or to a taxpayer whose tax liability
was directly involved in such letter ruling, technical advice memorandum or determination letter, such taxpayer generally must request relief under § 7805(b) in the manner described in section 19 below.
SECTION 19. HOW MAY
RETROACTIVE EFFECT
BE LIMITED?
Commissioner has
discretionary authority
under § 7805(b)

.01 Under § 7805(b) the Commissioner or the Commissioner’s delegate has the
discretion to prescribe the extent, if any, to which a technical advice memorandum will be
applied without retroactive effect.

Taxpayer may request
Commissioner to exercise
authority

.02 A taxpayer who has received a technical advice memorandum or for whom a technical advice request is pending may request that the Commissioner, Tax Exempt and
Government Entities Division, the Commissioner’s delegate, exercise the discretionary
authority under § 7805(b) to limit the retroactive effect of any holding stated in the technical advice memorandum or to limit the retroactive effect of any subsequent modification
or revocation of the technical advice memorandum.
.03 When a technical advice memorandum that concerns a continuing transaction

Form of request to limit

January 3, 2000

182

2000–1 I.R.B.

retroactivity—before an
examination

is modified or revoked by, for example, a subsequent revenue ruling or final regulations,
a request to limit the retroactive effect of the modification or revocation of the technical
advice memorandum must be made in the form of a request for a letter ruling if submitted
before examination of the return that contains the transaction that is the subject of the request for the letter ruling. See Rev. Proc. 2000–4.

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 a EP or EO
Examinations or consideration by the chief, appeals office, a taxpayer is informed that EP
or EO Examinations or the chief, appeals office, recommends that a technical advice
memorandum be modified or revoked, a request to limit the retroactive application of the
modification or revocation of the technical advice memorandum must itself be made in the
form of a request for technical advice. See sections 7, 8 and 10 of this revenue procedure
and sections 19.07 and 19.08 below.
The taxpayer must also submit a statement that the request is being made pursuant to §
7805(b). This statement must also indicate the relief requested and give the reasons and
arguments in support of the relief requested. It must also be accompanied by any documents bearing on the request. The explanation should discuss the five items listed in section 18.06 of this revenue procedure as they relate to the taxpayer’s situation.
The taxpayer’s request, including the statement that the request is being made pursuant to
§ 7805(b), must be forwarded by EP or EO Examinations or the chief, appeals office, 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 technical advice memorandum that does not modify or revoke a technical advice memorandum may be made as part
of that technical advice request, either initially, or at any time before the technical advice
memorandum 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 technical advice concerns only the application of § 7805(b), the
taxpayer has the right to a conference in EP or EO Technical in accordance with the provisions of section 14 of this revenue procedure.
If the request for application of § 7805(b) is included in the request for technical advice
on the substantive issues or is made before the conference of right on the substantive issues, the § 7805(b) issues will be discussed at the taxpayer’s one conference of right.
If the request for the application of § 7805(b) is made as part of a pending technical advice 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 technical advice on the
applicability of § 7805(b) relief to a qualification issue under § 401(a) pursuant to a determination letter request, the applicant’s administrative remedies will not be considered exhausted until EP Technical has a reasonable time to act on the request for technical advice.
(See section 20 of Rev. Proc. 2000–6.)

Exhaustion of administrative
remedies — exempt
organization matters

.08 Where technical advice has been requested pursuant to an exempt organization’s
request for § 7805(b) relief from the retroactive application of an adverse determination
within the meaning of § 7428(a)(1), the exempt organization’s administrative remedies
will not be considered exhausted, within the meaning of § 7428(b)(2), until EO Technical
has a reasonable time to act on the request for technical advice.

SECTION 20. WHAT IS

2000–1 I.R.B.

Rev. Proc. 99–5 is superseded.

183

January 3, 2000

THE EFFECT OF THIS
REVENUE PROCEDURE
ON OTHER DOCUMENTS?
SECTION 21. EFFECTIVE
DATE
SECTION 22. PAPERWORK
REDUCTION ACT

This revenue procedure is effective January 10, 2000.
The collections of information contained in this revenue procedure have been reviewed
and approved by the Office of Management and Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. § 3507) under control number 1545–1520.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.
The collections of information in this revenue procedure are in sections 6.03, 9, 10.01,
10.02, 11.03, 11.04, 11.05, 12.02, 12.03, 13.01, 14.03, 14.10, 16.10, 16.12, 17.04, 19.03,
19.04, and 19.05. This information is required to evaluate and process the request for a
technical advice memorandum. In addition, this information will be used to help the Service delete certain information from the text of the technical advice memorandum before
it is made available for public inspection, as required by § 6110. The collections of information are required to obtain a technical advice memorandum. The likely respondents are
businesses or other for-profit institutions and not-for-profit institutions.
The estimated total annual reporting and/or recordkeeping burden is 1,950 hours.
The estimated annual burden per respondent/recordkeeper varies from 4 hours to 60
hours, depending on individual circumstances, with an estimated average of 19.5 hours.
The estimated number of respondents and/or recordkeepers is 100.
The estimated annual frequency of responses is one request per applicant.
Books or records relating to a collection of information must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by § 6103.

DRAFTING INFORMATION

January 3, 2000

The principal author of this revenue procedure is Michael Rubin of 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
taxpayer assistance telephone service or Mr. Rubin between the hours of 1:30 and 3:30
p.m. Eastern time, Monday through Thursday on (202) 622-6074/6075 or (202) 622-6214,
respectively. For exempt organizations matters, please contact Mr. Lynn Kawecki at (202)
622-7922. These telephone numbers are not toll-free.

184

2000–1 I.R.B.

INDEX
References are to sections in Rev. Proc. 2000–5
Additional Information
—procedure for submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 16.02, 16.05, 16.10
after conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 14.10
—proposed deletions under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 10.05
Chief Counsel
—jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 5.01
Conferences
—offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sections 11.02, 14.01, 14.09
exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sections 11.06, 12.04, 16.12
—pre-submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 9
—scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 14
request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.07, 14.08, 19.06
telephone conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 14.11
Definition - technical advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..section 3
Extension of Time
—to appeal decision not to request technical advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 12.02
—to disagree with statement of facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 11.03, 11.04
—to schedule conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sections 14.03, 14.04
—to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.10, 16.10
Farmers’ Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 4.02, 5.01
Letter Ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 18.06
Mandatory Technical Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..sections 4.04, 7.01
Paperwork Reduction Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 22
Perjury Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.10, 16.10
Power of Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 10.08
Public Disclosure under § 6110
—deletion statement required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 10.05
exception when § 6104 applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 10.04
failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 11.05
—notice of intention to disclose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 17.03
protesting deletions not made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 16.12, 17.04
Representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.08, 16.10
Retroactive Effect
—in general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 18.02—.06
on letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 18.06
—request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 19
employee plans determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 19.07
exempt organization matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 19.08
format of request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 19.03, 19.04
scheduling conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.07, 14.09, 19.06
Revenue Rulings
—effect on continuing transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 18.04, 18.05
request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 19.01—.05
Section 301.9100–1 Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 6
Status of Technical Advice Request
—to EP or EO Examinations Area or
EP or EO Determinations or appeals office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 15.02

2000–1 I.R.B.

185

January 3, 2000

—to taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 15.01
Where to Send
—additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 16.11
—technical advice request from appeals office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 10.06
—technical advice request from EP or EO Examinations or
EP or EO Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 10.06
Withdrawal of Technical Advice Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 13
26 CFR 601.201: Rulings and determination letters.

January 3, 2000

186

2000–1 I.R.B.

Rev. Proc. 2000–6
TABLE OF CONTENTS
SECTION 1. WHAT IS
THE PURPOSE OF THIS
REVENUE PROCEDURE?

p. 192

SECTION 2. WHAT CHANGES
HAVE BEEN MADE TO
THIS PROCEDURE?

p. 192

.01 Purpose of revenue procedure
.02 Organization of revenue procedure
.01 In general
.02 Tax Exempt and Government Entities Division
.03 Multiple employer plans
.04 Section 401(h) and § 420

PART I. PROCEDURES FOR DETERMINATION LETTER REQUESTS
SECTION 3. ON WHAT
ISSUES MAY TAXPAYERS
REQUEST WRITTEN
GUIDANCE UNDER THIS
PROCEDURE?

p. 192

.01 Types of requests
.02 Areas in which determination letters will not be issued
.03 GATT, SBJPA, and TRA ’97
.04 Temporary closing of M&P and regional prototype plan programs

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

p. 195

SECTION 5. WHAT IS THE
GENERAL SCOPE OF A
DETERMINATION LETTER?

p. 195

.01 Tax Exempt and Government Entities Division
.02 Chief Counsel’s revenue procedure

.01 Scope
.02 All form and certain non-form requirements generally reviewed
.03 Nondiscrimination in amount requirement
.04 Average benefit test requirement
.05 Nondiscriminatory current availability requirement
.06 Effective availability requirement
.07 Other limits on scope of determination letter

SECTION 6. WHAT IS THE
GENERAL PROCEDURE
FOR REQUESTING
DETERMINATION LETTERS?

p. 197

.01 Scope
.02 Qualified trusteed plans
.03 Qualified nontrusteed annuity plans
.04 Complete information required
.05 Complete copy of plan and trust required
.06 Section 9 of Rev. Proc. 2000–4 applies
.07 Separate application required for each single § 414(l) plan

2000–1 I.R.B.

187

January 3, 2000

.08 Schedule Q
.09 Prior letters
.10 User fees
.11 Interested party notification and comment
.12 Contrary authority must be distinguished
.13 Employer/employee relationship
.14 Incomplete applications returned
.15 Effect of failure to disclose material fact
.16 Data requirements
.17 Where to file request
.18 Withdrawal of requests
.19 Right to status conference
.20 How to request status conference
SECTION 7. INITIAL
QUALIFICATION, ETC.

p. 200

.01 Scope
.02 Forms
.03 Application for amendments must include copy of plan
.04 Restatements may be required
.05 Controlled groups, etc.

SECTION 8. MASTER &
PROTOTYPE PLANS;
REGIONAL PROTOTYPE
PLANS

p. 201

.01 Scope
.02 Determination letter may be necessary for reliance
.03 Forms
.04 Required information
.05 Special rules for standardized plans
.06 Amended plan is treated as an individually-designed plan
.07 Requests made prior to the issuance of opinion or notification letter

SECTION 9. VOLUME
SUBMITTER PLANS

p. 203

.01 Scope
.02 Purpose of volume submitter program
.03 Description of volume submitter program
.04 Definition of volume submitter plan

January 3, 2000

188

2000–1 I.R.B.

.05 Incorporation by reference
.06 User fees
.07 Advisory letter for specimen plan
.08 Determination letter for adoption of volume submitter plan
SECTION 10. MULTIPLE
EMPLOYER PLANS

p. 204

.01 Scope
.02 Form 5300 and Schedule Q
.03 Multiple employer M&P plans
.04 Where to file
.05 Preliminary approval for certain multiple employer M&P plans
.06 Determination letter sent to each employer
.07 Addition of employers

SECTION 11. MINOR
AMENDMENT OF
PREVIOUSLY
APPROVED PLAN

p. 205

.01 Scope
.02 Form 6406
.03 Additional information
.04 Minor amendment procedures may not be used for complex amendments
.05 EP Determinations has discretion to determine whether use of minor amendment procedure is appropriate

SECTION 12. TERMINATION
OR DISCONTINUANCE OF
CONTRIBUTIONS; NOTICE
OF MERGERS,
CONSOLIDATIONS, ETC.

p. 206

.01 Scope
.02 Forms
.03 Required demonstration of nondiscrimination requirements
.04 Compliance with Title IV of ERISA
.05 Termination prior to time for amending for change in law

SECTION 13. GROUP TRUSTS

p. 207

.01 Scope
.02 Required information

SECTION 14. AFFILIATED
SERVICE GROUPS;
LEASED EMPLOYEES

p. 207

.01 Scope
.02 Types of requests under § 414(m) and § 414(n)
.03 Employer must request the determination under § 414(m) or § 414(n)
.04 Forms
.05 Employer is responsible for determining status under § 414(m) and § 414(n)

2000–1 I.R.B.

189

January 3, 2000

.06 Omission of material fact
.07 Service will indicate whether § 414(m) or § 414(n) was considered
.08 M&P plans; regional prototype plans
.09 Required information for § 414(m) determination
.10 Required information for § 414(n) determination
SECTION 15. WAIVER OF
MINIMUM FUNDING

p. 210

.01 Scope
.02 Applicability of Rev. Proc. 94–41
.03 Waiver and determination letter request submitted to national office
.04 Handling of the request
.05 Interested party notice and comment
.06 When waiver request should be submitted

SECTION 16. SECTION
410(h) and § 420
DETERMINATION LETTERS

p. 211

.01 Scope
.02 Required information for § 401(h) determination
.03 Required information for § 420 determination

PART II. INTERESTED PARTY NOTICE AND COMMENT
SECTION 17. WHAT RIGHTS
TO NOTICE AND COMMENT
DO INTERESTED PARTIES
HAVE?

p. 213

.01 Rights of interested parties
.02 Comments by interested parties
.03 Requests for DOL to submit comments
.04 Right to comment if DOL declines to comment
.05 Confidentiality of comments
.06 Availability of comments
.07 When comments are deemed made

SECTION 18. WHAT ARE THE
GENERAL RULES FOR
NOTICE TO INTERESTED
PARTIES?

p. 215

.01 Notice to interested parties
.02 Time when notice must be given
.03 Content of notice
.04 Procedures for making information available to interested parties
.05 Information to be available to interested parties
.06 Special rules if there are less than 26 participants
.07 Information described in § 6104(a)(1)(D) should not be included
.08 Availability of additional information to interested parties
.09 Availability of notice to interested parties

January 3, 2000

190

2000–1 I.R.B.

PART III. PROCESSING DETERMINATION LETTER REQUESTS
SECTION 19. HOW DOES
THE SERVICE HANDLE
DETERMINATION LETTER
REQUESTS?

p. 218

.01 Oral advice
.02 Conferences
.03 Determination letter based solely on administrative record
.04 Notice of final determination
.05 Issuance of the notice of final determination

SECTION 20. EXHAUSTION
OF ADMINISTRATIVE
REMEDIES

p. 219

.01 In general
.02 Steps for exhausting administrative remedies
.03 Applicant’s request for § 7805(b) relief
.04 Interested parties
.05 Deemed exhaustion of administrative remedies
.06 Service must act on appeal
.07 Service must act on § 7805(b) request
.08 Effect of technical advice request

SECTION 21. WHAT
EFFECT WILL AN EMPLOYEE
PLAN DETERMINATION
LETTER HAVE?

p. 220

.01 Scope of reliance on determination letter
.02 Effect of determination letter on minor plan amendment
.03 Sections 13 and 14 of Rev. Proc. 2000–4 applicable
.04 Effect of subsequent publication of revenue ruling, etc.
.05 Determination letter does not apply to taxability issues

SECTION 22. EFFECT ON
OTHER REVENUE
PROCEDURES

p. 221

SECTION 23. EFFECTIVE DATE

p. 221

SECTION 24. PAPERWORK
REDUCTION ACT

p. 222

DRAFTING INFORMATION

p. 222

EXHIBIT

p. 223

APPENDIX §§ 401(h)
AND 420 DETERMINATION

p. 225

2000–1 I.R.B.

191

January 3, 2000

LETTERS
SECTION 1. WHAT IS THE
PURPOSE OF THIS
REVENUE PROCEDURE?
Purpose of revenue
procedure

.01 This revenue procedure sets forth the procedures of the various offices of the Internal
Revenue Service for issuing determination letters on the qualified status of pension, profitsharing, stock bonus, annuity, and employee stock ownership plans (ESOPs) under §§
401, 403(a), 409 and 4975(e)(7) of the Internal Revenue Code of 1986, and the status for
exemption of any related trusts or custodial accounts under § 501(a).

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 concerning the processing of determination letter
requests and describes the effect of a determination letter.

SECTION 2. WHAT
CHANGES HAVE BEEN
MADE TO THIS PROCEDURE?
In general

.01 This revenue procedure is a general update of Rev. Proc. 99–6, 1999–1 I.R.B. 187,
which contains the Service’s general procedures for employee plans determination letter
requests. Most of the changes to Rev. Proc. 99–6 involve minor revisions, such as updating citations to other revenue procedures.

Tax Exempt and Government
Entities Division

.02 The procedure has been revised to reflect the reorganization of the Service and the
creation of the new Tax Exempt and Government Entities Division (TE/GE). Throughout
the procedure, titles have been changed to reflect the realignment of responsibilities formerly under the Assistant Commissioner (Employee Plans and Exempt Organizations) to
the Commissioner, TE/GE.

Multiple employer plans

.03 Section 10.07 of Rev. Proc. 99–6 provided that employers could not continue to rely
on a favorable determination letter for a multiple employer plan after other employers
joined the plan. Section 10.07 has been revised to allow employers to continue to rely on
a favorable determination letter for a multiple employer plan after another employer joins
the plan provided an application for a new determination letter is submitted by the last day
of the plan year beginning after the new employer joins the plan. Coverage information
needs to be provided only for the new employer.

Section 401(h) and §420

.04 Section 16 has been modified to clarify the procedures for requesting determination letters
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). Section 16 and the checklist in the Appendix
of this revenue procedure have also been modified to reflect the amendments to § 420 that were
made by § 535 of the Tax Relief Extension Act of 1999, Pub. L. 106–170 (TREA ‘99), which
apply, generally, to qualified transfers occurring after December 17, 1999. Finally, section 16
has been modified to provide that a determination letter that considers whether the requirements
of § 401(h) are satisfied in a plan will be issued only if the plan sponsor requests such consideration in a cover letter submitted with the application and indicates in the cover letter the location
of plan provisions that satisfy the requirements of § 401(h).
PART I. PROCEDURES FOR DETERMINATION LETTER REQUESTS

SECTION 3. ON WHAT
ISSUES MAY TAXPAYERS
REQUEST WRITTEN
GUIDANCE UNDER THIS

January 3, 2000

192

2000–1 I.R.B.

PROCEDURE?
Types of requests

TYPE OF REQUEST

.01 Determination letters may be requested on completed and proposed transactions as
set forth in the table below:
REV. PROC
FORMS
SECTION

1. Initial Qualification, etc.
a. Individually-Designed Plans (other than collectively
bargained plans)
b. ESOPs
c. Collectively Bargained Plans
d. Adoptions of Master & Prototype or Regional Prototype Plans
(including a collectively bargained plan if no noncollectively
bargained employees are in the plan)
e. Adoptions of Volume Submitter Plans (including a collectively bargained
plan if no noncollectively bargained employees are in the plan)
f. Multiple Employer Plans
g. Group Trusts
2. Minor Amendments
3. Termination
a. In general
b. Multiemployer plan covered by PBGC insurance

5300,
Schedule Q
5300, 5309,
Schedule Q
5303,
Schedule Q,
5307,
Schedule Q

7

5307,
Schedule Q
5300,
Schedule Q
Cover letter

9

13

6406

11

5310, 6088,
Schedule Q
5303, 6088,
Schedule Q

12

7
7
8

10

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 30 days before the merger, consolidation or transfer of assets and iabilities. The filing of Form 5310–A will not result in the issuance of a determination letter.
4. Special Procedures
a. Affiliated Service Group Status (§ 414 (m)), Leased
Employees (§ 414(n))
b. Minimum Funding Waiver

5300,
Schedule Q
5300,
Schedule Q
5300 Series,
Schedule Q,
Cover letter,
Checklist
5300 Series,
Schedule Q,
Cover Letter
Checklist
Cover Letter,
Checklist

c. Section 401(h) Determination Letters

d. Section 420 Determination Letters Including
Other Matters Under § 401(a)

e. Section 420 Determination Letters Excluding
Other Matters Under § 401(a)

2000–1 I.R.B.

193

14
15
16

16

16

January 3, 2000

Areas in which determination
letters will not be issued

.02 Determination letters issued in accordance with this revenue procedure do not
include determinations on the following issues within the jurisdiction of the Commissioner, TE/GE:
(1) Issues involving §§ 72, 79, 105, 125, 127, 129, 402, 403 (other than 403(a)), 404,
409(l), 409(m), 412, 457, 511 through 515, and 4975 (other than 4975(e)(7)), unless these
determination letters are authorized under section 7 of Rev. Proc. 2000–4, page 115, this
Bulletin.
(2) Plans or plan amendments for which automatic approval is granted pursuant to section 8.05 below.
(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;
(b) An amendment that merely adjusts the maximum limitations under § 415 to reflect
annual cost-of-living increases, other than an amendment that adds an automatic cost-ofliving adjustment provision to the plan; and
c) An amendment solely to include language pursuant to § 403(c)(2) of Title I of the
Employee Retirement Income Security Act of 1974 (ERISA) concerning the reversion of
employer contributions made as a result of mistake of fact.
(4) This section applies to determination letter requests with respect to plans that combine an ESOP (as defined in § 4975(e)(7) of the Code) with retiree medical benefit features described in § 401(h) (HSOPs).
(a) In general, determination letters will not be issued with respect to plans that combine an ESOP with an HSOP with respect to:
(i) whether the requirements of § 4975(e)(7) are satisfied;
(ii) whether the requirements of § 401(h) are satisfied; or
(iii) whether the combination of an ESOP with an HSOP in a plan adversely affects its
qualification under § 401(a).
(b) A plan is considered to combine an ESOP with an HSOP if it contains ESOP provisions and § 401(h) provisions.
(c) However, an arrangement will not be considered covered by section 3.02(4) of this
revenue procedure if, under the provisions of the plan, the following conditions are satisfied:
(i) No individual accounts are maintained in the § 401(h) account (except as required
by § 401(h)(6));
(ii) No employer securities are held in the § 401(h) account;
(iii) The § 401(h) account does not contain the proceeds (directly or otherwise) of an
exempt loan as defined in § 54.4975–7(b)(1)(iii) of the Pension Excise Tax Regulations;
and
(iv) The amount of actual contributions to provide § 401(h) benefits (when added to
actual contributions for life insurance protection under the plan) does not exceed 25 percent of the sum of: (1) the amount of cash contributions actually allocated to participants’

January 3, 2000

194

2000–1 I.R.B.

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.
GATT, SBJPA, and TRA ’97

.03 As provided in Rev. Proc. 98–14, 1998–4 I.R.B. 22, determination letter applications
that are filed on or after April 27, 1998, will generally be reviewed by the Service taking
into account changes in the plan qualification requirements made by the Uruguay Round
Agreements Act, Pub. L. 103–464 (“GATT”), the Taxpayer Relief Act of 1997, Pub. L.
105–34 (“TRA ‘97”), and those provisions of the Small Business Job Protection Act of
1996, Pub. L. 104–188 (“SBJPA”) that are effective before 1999. Pursuant to Rev. Proc.
98–53, 1998–40 I.R.B. 9, which modified Rev. Proc. 98–14, however, sponsors of individually-designed plans, including volume submitter plans, may instead request that an application for a determination of a plan’s qualified status (other than a determination on plan
termination) be reviewed without taking into account the requirements of GATT, TRA ‘97,
and SBJPA. In addition, determination letter applications for M&P and regional prototype
plans (other than terminating plans) that have not yet been amended to comply with the
changes in the qualification requirements made by GATT, TRA ‘97, and SBJPA will be reviewed without taking these changes into account. Until further notice, the Service will
not take into account those changes in the qualification requirements made by SBJPA that
are first effective after 1998 in issuing determination and other letters, except for determination letters for terminating plans. Until such notice is given, plans that include provisions that reflect the SBJPA qualification changes that are effective after 1998 will not be
subject to adverse determination letters by reason of the inclusion of such provisions.
However, favorable letters issued for plans, other than terminating plans, may not be relied upon with respect to whether such provisions satisfy the SBJPA qualification changes
that are effective after 1998. Also see Rev. Proc. 99–23, 1999–16 I.R.B. 5 regarding the
remedial amendment period for GATT, SBJPA, and TRA ‘97 plan amendments.

Temporary Closing of
M & P and regional
prototype plan programs

.04 As provided in Announcement 99–50, 1999–19 I.R.B. 1, the Service temporarily stopped
accepting applications for opinion and notification letters for M&P and regional prototype
plan pending publication of revised procedures. These procedures, which will combine
the M&P and regional prototype plan programs into a single program, will be issued soon.

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. 2000–4.
(2) M&P plans: See Rev. Proc. 89–9, 1989–1 C.B. 780, as modified by Rev. Proc.
90–21, 1990–1 C.B. 499, sections 8.03 – 8.08 of Rev. Proc. 91–66, Rev. Proc. 92–41,
1992–1 C.B. 870, and Rev. Proc. 93–10, 1993–1 C.B. 476.
(3) Regional prototype plans: See Rev. Proc. 89–13, 1989–1 C.B. 801, as modified by
Rev. Proc. 90–21, 1990–1 C.B. 499, sections 8.03 – 8.08 of Rev. Proc. 91–66, Rev. Proc.
92–41, Rev. Proc. 93–10, and Rev. Proc. 95–42, 1995–2 C.B. 411.
(4) Technical advice requests: See Rev. Proc. 2000–5, page 158, this Bulletin.

Chief Counsel’s revenue
procedure

2000–1 I.R.B.

.02 For the procedures for obtaining letter rulings, determination letters, etc., on matters
within the jurisdiction of the Associate Chief Counsel (Domestic), the Associate Chief

195

January 3, 2000

Counsel (Employee Benefits and Exempt Organizations), and the Associate Chief Counsel (International), see Rev. Proc. 2000–1, page 4, this Bulletin.
SECTION 5. WHAT IS THE
GENERAL SCOPE OF A
DETERMINATION LETTER?
Scope

.01 This section delineates, generally, the scope of an employee plan determination letter. It identifies certain qualification requirements, relating to nondiscrimination, that are
considered by the Service in its review of a plan only at the election of the applicant. This
section also identifies certain qualification requirements that are not considered by the
Service in its review of a plan and with respect to which determination letters do not provide reliance. This section applies to all determination letters other than letters issued in
response to an application filed on Form 6406, Short Form Application for Determination
for Minor Amendment of Employee Benefit Plan; letters relating to the qualified status of
group trusts; and 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
section 21 of this revenue procedure.

All form and certain non-form
requirements generally reviewed

.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)). In addition, certain non-form qualification requirements, including, for
example, the minimum participation requirements of § 401(a)(26), are considered by the
Service in its review of a plan. As described below, certain other nondiscrimination requirements are not considered unless the applicant specifically requests that they be considered. Unless otherwise stated, a plan is reviewed on the basis of the requirements that
apply to the plan as of the date the application is received, except for terminating plans.
For terminating plans, the requirements are those that apply as of the date of termination.

Nondiscrimination in
amount requirement

.03 Unless the applicant elects otherwise, a plan that is not intended to satisfy one of the
design-based safe harbors described in §§ 1.401(a)(4)-2(b)(2), 1.401(a)(4)-3(b)(3),
1.401(a)(4)-3(b)(4)(i)(C)(1), 1.401(a)(4)-3(b)(4)(i)(C)(2), 1.401(a)(4)-3(b)(5),
1.401(a)(4)-8(b)(3), or 1.401(a)(4)-8(c)(3)(iii)(B) of the Income Tax Regulations (herein
referred to as the “design-based safe harbors”) will not be reviewed for (and a determination letter may not be relied on with respect to) the nondiscrimination in amount of contributions or benefits requirement of § 1.401(a)(4)-1(b)(2).

Average benefit test requirement

.04 Unless the applicant elects otherwise, a plan that does not satisfy the ratio percentage
test of § 410(b)(1) and the regulations thereunder will not be reviewed for (and determination letters may not be relied on with respect to) the average benefit test of § 410(b)(2) and
the regulations thereunder.

Nondiscriminatory current
availability requirement

.05 Any determination letter that expresses an opinion that the plan satisfies the
minimum coverage requirements of § 410(b) also will express an opinion that the plan satisfies the nondiscriminatory current availability requirements of § 1.401(a)(4)-4(b) with
respect to those benefits, rights, and features that are currently available (within the meaning of § 1.401(a)(4)-4(b)(2)) to all employees in the plan’s coverage group. The plan’s
coverage group consists of those employees who are treated as currently benefiting under
the plan (within the meaning of § 1.410(b)-3(a)) for purposes of demonstrating that the
plan satisfies the minimum coverage requirements of § 410(b). Applications will not be
reviewed for (and determination letters may not be relied on with respect to) whether the
plan satisfies the requirements of § 1.401(a)(4)-4(b) with respect to any benefit, right, or
feature other than the ones described above, except those that are specified by the applicant and for which the applicant has provided information relevant to the determination.

Effective availability
requirement

.06 In no event will any plan be reviewed to determine (and determination letters may
not be relied on with respect to) whether any benefit, right, or feature under the plan satis-

January 3, 2000

196

2000–1 I.R.B.

fies the effective availability requirement of § 1.401(a)(4)-4(c).
Other limits on scope of
determination letter

.07 Determination letters may generally be relied on with respect to whether the timing
of a plan amendment (or series of amendments) satisfies the nondiscrimination requirements of § 1.401(a)(4)-5(a) of the regulations, unless the plan amendment is part of a pattern of amendments that significantly discriminates in favor of highly compensated employees. A favorable determination letter does not provide reliance for purposes of § 404
and § 412 with respect to whether an interest rate (or any other actuarial assumption) is
reasonable. Furthermore, a favorable determination letter will not constitute a determination with respect to the use of the substantiation guidelines contained in Rev. Proc. 93–42,
1993–2 C.B. 540; e.g., a determination letter will not consider whether data submitted
with an application is substantiation quality. Lastly, a favorable determination letter will
not constitute a determination with respect to whether any requirements of § 414(r), relating to whether an employer is operating qualified separate lines of business, are satisfied.
However, if an employer is relying on § 414(r) to satisfy the minimum coverage or minimum participation requirements, a determination letter will take into account whether the
plan satisfies the nondiscriminatory classification test of § 410(b)(5)(B), and, if the requirements of § 410(b) or § 401(a)(26) are to be applied on an employer-wide basis under
the special rules for employer-wide plans, a determination letter will take into account
whether the requirements of the applicable special rule set forth in § 1.414(r)-1(c)(2)(ii) or
§ 1.414(r)-1(c)(3)(ii) are met.

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 requirements of § 401 is a qualified trust
and is exempt from federal income tax under § 501(a) unless the exemption is denied
under § 502, relating to feeder organizations, or § 503, relating to prohibited transactions,
if, in the latter case, the plan is one described in § 503(a)(1)(B).

Qualified nontrusteed
annuity plans

.03 A nontrusteed annuity plan that meets the applicable requirements of § 401 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 the Employee Plans Determinations manager (EP Determinations)
at the address in section 6.17. The filing of the application, when accompanied by all information and documents required by this revenue procedure, will generally serve to provide the Service with the information required to make the requested determination. However, in making the determination, the Service may require the submission of additional
information. Information submitted to the Service in connection with an application for
determination may be subject to public inspection to the extent provided by § 6104.

Complete copy of plan and
trust instrument required

.05 Except in the case of applications involving master and prototype or regional
prototype plans filed on Form 5307, or minor amendments described in section 11, a complete copy of the plan and trust instrument is required to be included with the determination letter application. See sections 7.03 and 7.04 for what must be included with applica-

2000–1 I.R.B.

197

January 3, 2000

tions involving plan amendments that are not minor amendments.
Section 9 of Rev.
Proc. 2000–4 applies

.06 Section 9 of Rev. Proc. 2000–4 is generally applicable to requests for determination
letters under this revenue procedure.

Separate application for
each single § 414(l) plan

.07 A separate application is required for each single plan within the meaning of § 414(l).
This requirement does not pertain to applications regarding the qualified status of group
trusts.
.08 Schedule Q (Form 5300) must be filed with all determination letter applications,
other than applications that (1) are filed on Form 6406, (2) relate to government plans or
to the qualified status of group trusts, or (3) relate solely to the requirements of § 420. The
applicant must indicate on Schedule Q whether a determination of any of the requirements
referred to in sections 5.03 through 5.05 is requested, and must include with the application form the material and demonstrations called for in the instructions to Schedule Q.

Schedule Q

Prior letters

.09 If the plan has received a favorable determination letter in the past, the application
must include a copy of the latest determination letter, if available. If the letter is not available, an explanation must be included with the application.

User fees

.10 The appropriate user fee must be paid according to the procedures of Rev. Proc.
2000–8, page 230, this Bulletin. Form 8717, User Fee for Employee Plan Determination
Letter Request, should accompany each determination letter request.

Interested party notification
and comment

.11 Before filing an application, the applicant requesting a determination letter must
satisfy the requirements of § 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

.12 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

.13 The Service ordinarily does not make determinations regarding the existence of an
employer-employee relationship as part of its determination of the qualification of a plan,
but relies on the applicant’s representations or assumptions, stated or implicit, regarding
the existence of such a relationship. The Service will, however, make a determination regarding the existence of an employer-employee relationship when so requested by the applicant. In such cases, the application with respect to the qualification of the plan should
be filed in accordance with the provisions of this revenue procedure, contain the information and documents in the instructions to the application, and be accompanied by a completed Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding, and any information and copies of
documents the organization deems appropriate to establish its status. The Service may, in
addition, require further information that it considers necessary to determine the employment status of the individuals involved or the qualification of the plan. After the employer-employee relationships have been determined, EP Determinations may issue a determination letter as to the qualification of the plan.

Incomplete applications
returned

.14 If an applicant requesting a determination letter does not comply with all the
required provisions of this revenue procedure, EP Determinations, in its discretion, may
return the application and point out to the applicant those provisions which have not been
met. The request will also be returned pursuant to Rev. Proc. 2000–8 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 sec-

January 3, 2000

198

2000–1 I.R.B.

tion have been satisfied.
Effect of failure to
disclose material fact

Data requirements

Where to file request

.15 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 which would otherwise be obtained through issuance by the Service of a favorable determination letter. Similarly, failure to accurately provide any of the information called for on any form required by this
revenue procedure may result in no reliance.
.16 The applicant is responsible for the accuracy of any factual representations and conclusions contained in the application. In some circumstances, applicants may not be able
to use precise data in preparing demonstrations or schedules that may be required to be
submitted with the application. Therefore, the use of estimated data in these demonstrations and schedules is not prohibited. In addition, the data used may be for a prior plan
year, provided the following conditions are satisfied: (1) the data is the most recent data
available, (2) there is no misstatement or omission of material fact with respect to such
prior year’s data, (3) there has been no material change in the facts (including a change in
the benefits provided under the plan and employee demographics) since such prior plan
year, (4) the same data is used throughout the application, (5) the data is relevant to the operational effect of the plan provisions that are under review, and (6) the applicant clearly
discloses that prior year’s data is being submitted with the application. The use of estimated or prior year’s data is not a misrepresentation of material fact. A determination letter that is based on estimated or prior year’s data, however, may not be relied upon to the
extent that such data does not satisfy the substantiation guidelines in Rev. Proc. 93–42.
Regardless of whether the data is actual or estimated, or whether it is for the current or a
prior year, data that is presented in a determination letter application must reflect any
changes in the law that are considered by the Service in its determination of the plan’s
qualified status. Thus, data presented in an application for a determination letter that takes
into account the qualification changes in GATT, SBJPA, and TRA ‘97, will have to reflect
the changes to the qualification requirements made by these laws, including, for example,
the change to the definition of highly compensated employee in § 414(q).
.17 Requests for determination letters are to be addressed to EP Determinations at the
following address:
Internal Revenue Service
P.O.Box 192
Covington, KY 41012-0192
Requests shipped by Express Mail or a delivery service should be sent to:
Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011

Withdrawal of requests

.18 The applicant’s request for a determination letter may be withdrawn by a written request at any time prior to the issuance of a final adverse determination letter. If an appeal
to a proposed adverse determination letter is filed, a request for a determination letter may
be withdrawn at any time prior to the forwarding of the proposed adverse action to the
chief, appeals office. In the case of a withdrawal, the Service will not issue a determination of any type. A failure to issue a determination letter as a result of a withdrawal will
not be considered a failure of the Secretary or his delegate to make a determination within
the meaning of § 7476. However, the Service may consider the information submitted in
connection with the withdrawn request in a subsequent examination. Generally, the user
fee will not be refunded if the application is withdrawn.

Right to status conference

.19 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

2000–1 I.R.B.

199

January 3, 2000

been pending at least 270 days. The status conference may be by phone or in person, as
mutually agreed upon. During the conference, any issues relevant to the processing of the
application may be addressed, but the conference will not involve substantive discussion
of technical issues. No tape, stenographic, or other verbatim recording of a status conference may be made by any party. Subsequent status conferences may also be requested if
at least 90 days have passed since the last preceding status conference.
How to request status conference

.20 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 6.17. 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 actuary assigned to review the application or to the Actuarial manager, at the
address in section 15.03. In this case, the right to a status conference will be with the EP
Technical Manager.

SECTION 7. INITIAL
QUALIFICATION, ETC.
Scope

.01 This section contains the procedures for requesting determination letters for individually-designed defined contribution and defined benefit plans including employee stock
ownership plans and collectively bargained plans in the following circumstances:
(1) Initial qualification.
(2) Amendment (other than minor amendments described in section 11 below for which
Form 6406 is appropriate).
(3) Restatement of plan.
(4) Qualification of a plan in the event of a partial termination.
(5) Change in scope of determination letter. This means that the applicant has previously
received a favorable determination letter for the plan and now wishes to modify the scope
of the letter, for example, by requesting the Service to review the plan for certain nondiscrimination requirements that were not within the scope of the earlier letter.
(6) Other circumstances (excluding plan termination) such as a change in the demographics of the employer or a change in the method of testing the plan that was used in a
demonstration submitted in support of an earlier application.

Forms

.02 A determination letter request for the items listed in section 7.01 is made by filing the
appropriate form according to the instructions to the form and any prevailing revenue procedures, notices, and announcements.
(1) Form 5300, Application for Determination for Employee Benefit Plan, must be filed
to request a determination letter for plans other than collectively bargained plans.
(2) Form 5303, Application for Determination for Collectively Bargained Plan, must be
filed by a sponsor of a collectively bargained plan. If there is more than one plan, a separate Form 5303 must be filed for each plan.
(3) Form 5309, Application for Determination of Employee Stock Ownership Plan, must
be filed as an attachment with a Form 5300 or Form 5303 (if the ESOP is collectively bargained), in order to request a determination whether the plan is an ESOP under § 409 or §
4975(e)(7).
(4) Schedule Q, (Form 5300) Nondiscrimination Requirements, must be filed as an at-

January 3, 2000

200

2000–1 I.R.B.

tachment with Form 5300 and Form 5303.
Application for amendments
must include copy of plan

.03 Because a plan amendment, other than a minor amendment described in section 11,
may affect other portions of a plan so as to cause plan disqualification, a determination letter issued on such an amendment to a plan will express an opinion on the entire plan, as
amended. Therefore, the determination letter application must include a copy of the plan
and trust instrument plus all plan amendments made to the date of the application. The application must also include a statement explaining how any amendments made since the
last determination letter affect the plan or any other plan maintained by the employer.

Restatements may be required

.04 A restated plan is required to be submitted if four or more amendments (excluding
amendments making only non-substantive changes) have been made since the last restated
plan was submitted. In addition, the Service may require restatement of a plan or submission of a working copy of the plan in a restated format when considered necessary. For
example, restatement may be required when there have been major changes in law. A restated plan or a working copy of the plan in a restated format must be submitted for a plan
that has not previously received a determination letter that takes into account all requirements of TRA ‘86.

Controlled groups, etc.

.05 For a controlled group of corporations as defined in § 414(b), trades or businesses
under common control as defined in § 414(c), an affiliated service group within the meaning of § 414(m), and entities utilizing the services of leased employees within the meaning
of § 414(n), the coverage items on the application forms referred to in this revenue procedure must be completed as though the controlled group, commonly controlled trades or
businesses, affiliated service group, etc., constitutes a single entity. Leased employees
within the meaning of § 414(n) must be included as employees of the recipient entity (except in the case of a safe-harbor plan described in § 414(n)(5)).

SECTION 8. MASTER &
PROTOTYPE PLANS;
REGIONAL PROTOTYPE
PLANS
Scope

.01 This section contains procedures for requesting determination letters relating to
M&P plans or regional prototype plans.

Determination letter may be
necessary for reliance

.02 Except as provided in section 8.05, the issuance of a favorable opinion letter or
notification letter for an M&P plan or regional prototype plan does not constitute a determination that an employer adopting the sponsoring organization or sponsor’s plan has reliance that the plan is qualified under § 401(a). In order to have reliance, an employer
must obtain a favorable determination letter. In general, determination letters are requested for the employer’s adoption of an M&P plan or regional prototype plan, or for a
change by the employer in the choice of options offered by the sponsoring organization of
an M&P plan or sponsor of a regional prototype plan.

Forms

.03 Form 5307, Application for Determination for Adopters of Master or Prototype, Regional Prototype, or Volume Submitter Plan, must be filed to request a determination letter
for the adoption of an M&P plan or a regional prototype plan. Schedule Q, (Form 5300)
Nondiscrimination Requirements, must be filed as an attachment to Form 5307. Form
5307 may also be filed by adopters of pre-approved plans that are single employer collectively bargained plans that benefit only collectively bargained employees described in §
1.410(b)–6(d)(2) and that automatically satisfy the requirements of § 1.410(b)–2(b)(7).

Required information

.04 The determination letter request must include the following:
(1) An adoption agreement showing which elections the employer is making with respect to the elective provisions contained in the plan;

2000–1 I.R.B.

201

January 3, 2000

(2) A copy of the plan’s most recent opinion letter or notification letter;
(3) In the case of a determination letter request for a regional prototype plan, the application must include a certification by the sponsor that the notification letter has not been
withdrawn and is still in effect with respect to the plan being submitted; and

Special rules for
standardized plans

(4) In the case of a determination letter request for a regional prototype plan that uses a separate trust or custodial account, a copy of the employer’s trust or custodial account document.
.05 The following procedures apply for an employer’s adoption of an M&P or regional
prototype standardized form plan or paired plan.
(1) An employer adopting a standardized form or paired plan may rely on that plan’s
opinion or notification letter, except as provided in section 8.05(2) and (3) below, if the
following conditions are satisfied:
(a) The sponsoring organization or sponsor of such plan or plans has a currently valid
favorable opinion or notification letter; and
(b) The employer has followed the terms of the plan(s), and the coverage and contributions or benefits under the plan(s) are not more favorable to highly compensated employees (as defined in § 414(q)) than for other employees.
(2) Except in the case of a combination of paired plans, an employer may not rely on
opinion letters for standardized form plans without obtaining a determination letter if the
employer maintains at any time, or has maintained at any time, another plan, including a
standardized form plan, that was qualified or determined to be qualified covering some of
the same participants. For this purpose, a plan that has been properly replaced by the
adoption of a standardized form plan is not considered another plan. The plan that has
been replaced and the standardized form plan must be of the same type (e.g., both money
purchase pension plans) in order for the employer to be able to rely on the standardized
form plan’s opinion or notification letter without obtaining a determination letter.
(3) With respect to M&P plans, a standardized plan sponsored by a trade or professional
organization which is adopted by an employer that is not a bona fide member of such organization will be considered an individually- designed plan unless the following conditions are satisfied:
(a) The trade or professional organization is exempt from federal income taxation
under § 501(c)(6)
(b) The plan is a standardized defined contribution plan;
(c) The trade or professional organization makes the plan available for adoption by
nonmember employers by furnishing it to those of its members that independently qualify
as sponsoring organizations; and
(d) The requirements of section 5.01(2) through 5.01(5) of Rev. Proc. 90–21 are satisfied.

Amended plan is treated as
an individually-designed plan

Requests made prior to the

January 3, 2000

.06 An employer that amends any provision of an M&P plan or regional prototype plan
or its adoption agreement (other than to choose among the options offered by the sponsoring organization or sponsor if the plan permits or contemplates such options), or an employer that chooses to discontinue participation in such a plan as amended by its sponsoring organization or sponsor and does not substitute another approved plan referred to in
this section 8 is considered to have adopted an individually-designed plan. The requirements stated in this revenue procedure relating to the issuance of determination letters for
individually-designed plans will then apply to such plan.
.07 An application submitted by an employer with respect to an M&P plan or regional

202

2000–1 I.R.B.

issuance of opinion
or notification letter

prototype plan will be treated as an application for an individually-designed plan if it is
submitted prior to the time the M&P plan or regional prototype plan is approved.

SECTION 9. VOLUME
SUBMITTER PLANS
Scope
Purpose of volume
submitter program

.01 This section contains procedures for requesting advisory letters and determination
letters for volume submitter plans.
.02 The volume submitter program enables the Service to expedite the issuance of
determination letters in response to applications for approval of individually-designed
plans.

Description of volume
submitter program

.03 Under the volume submitter program, a practitioner who qualifies may request the
Service to issue an advisory letter regarding a volume submitter specimen plan. A specimen plan is a sample plan of a practitioner (rather than the actual plan of an employer) that
contains provisions that are identical or substantially similar to the provisions in plans that
such practitioner’s clients have adopted or are expected to adopt. Once the Service has approved the specimen plan, the practitioner will be able to file determination letter requests
on behalf of employers adopting substantially similar plans.

Definition of volume
submitter plan

.04 A volume submitter plan is a profit-sharing plan (without a § 401(k) arrangement),
a profit-sharing plan (with a § 401(k) arrangement), a money purchase pension plan, or a
defined benefit plan that is submitted under the procedures described in this section 9 for
filing requests for volume submitter advisory letters (with respect to the specimen plan)
and requests for determination letters (with respect to an employer’s adoption of a plan
that is substantially similar to an approved specimen plan). The Service will not accept
volume submitter requests with respect to ESOPs or other stock bonus plans.

Incorporation by reference

.05 Incorporation by reference in a volume submitter plan is subject to the limits described in section 5.02(16) and (17) of Rev. Proc. 89–13.

User fees

.06 Rev. Proc. 2000–8 provides reduced user fees for requests under the volume submitter program if certain requirements are satisfied. For adopting employers to be entitled to
file a request with the lower fees, the volume submitter practitioner must certify at the
time of filing the specimen plan that at least 30 employers are expected to adopt plans that
are substantially similar in form to the specimen plan. Also, the volume submitter practitioner must be a representative of the employer when the employer’s determination letter
application is filed. Although the volume submitter is not required to submit a list of
adopting employers, the Service reserves the right to request such a list.

Advisory letter for
specimen plan

.07 With respect to advisory letters for volume submitter specimen plans:

(1) A request for approval of a volume submitter specimen plan must be sent to the volume submitter coordinator for EP Determinations at the following address:
Internal Revenue Service
P.O. Box 2508
Cincinnati, OH 45201
Attn: VSC Coordinator
Room 4106
A request shipped by Express Mail or a delivery service should be sent to:
Internal Revenue Service
550 Main Street
Cincinnati, OH 45202
Attn: VSC Coordinator

2000–1 I.R.B.

203

January 3, 2000

Room 4106
(2) The request for approval must include the following:
(a) A copy of the specimen plan and any related specimen trust instrument;
(b) A cover letter requesting approval that includes the certification described in section 9.05 above and indicates the type of plan for which approval is being requested;
(c) The required user fee submitted with Form 8717, User Fee for Employee Plan
Determination Letter Request; and
(d) An index/table of contents listing the location of all variable sections.
Determination letter for
adoption of volume
submitter plan

.08 With respect to determination letters for volume submitter plans:
(1) A request for a determination letter for an employer’s adoption of an approved volume submitter plan must be sent to the address provided in section 6.17.
(2) The request for a determination letter, including a request regarding a single-employer collectively bargained plan that benefits only collectively bargained employees described in § 1.410(b)–6(d)(2) and that automatically satisfies the requirements of §
1.410(b)–2(b)(7), must include the following:
(a) Form 5307, Application for Determination for Adopters of Master or Prototype,
Regional Prototype, or Volume Submitter Plan;
(b) Schedule Q, (Form 5300) Nondiscrimination Requirements;
(c) Written authorization allowing the volume submitter practitioner to act as a representative of the employer with respect to the request for a determination letter;
(d) A copy of the advisory letter for the practitioner’s volume submitter specimen plan;
(e) A copy of the plan and trust instrument and a written representation made by the
volume submitter practitioner which states whether the plan and trust instrument are
word-for-word identical to the approved specimen plan and, if they are not, explains how
the plan and trust instrument differ from the approved specimen plan, describing the location, nature and effect of each deviation from the language of the approved specimen plan;
(f) A copy of the plan’s latest favorable determination letter, if applicable; and
(g) 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 volume submitter program, the Service may require the adopter to file
Form 5300 and pay the higher user fee.

SECTION 10. MULTIPLE
EMPLOYER PLANS
Scope
Form 5300 and Schedule Q

January 3, 2000

.01 This section contains procedures for applications filed with respect to plans described in § 413(c).
.02 An application filed with respect to a multiple employer plan must include a completed Form 5300 filed on behalf of one employer and a separate Form 5300 completed
through line 8 for each other employer maintaining the plan. One Schedule Q, (Form
5300) Nondiscrimination Requirements, should be filed for the plan. In accordance with
the instructions for Schedule Q, separate coverage and other information must be submit-

204

2000–1 I.R.B.

ted for each employer.
Multiple employer M&P plans

Where to file

.03 Certain multiple employer plans have in the past received Service approval as M&P
plans. In the case of such a plan that will continue to use an adoption agreement format, the
application must also include a completed adoption agreement for each employer maintaining
the plan. Regardless of whether an adoption agreement format continues to be used for such
a plan, the rules of § 1.414(l)–1 will apply in determining whether the plan is a single plan for
which only one determination letter will be issued and which requires only one user fee.
.04 The complete application, including all Forms 5300 (and, if applicable, adoption agreements) for employers maintaining the plan as of the date of the application, must be filed as
one package submission with EP Determinations. The application is to be directed to the attention of the volume submitter coordinator for EP Determinations at the address provided in
section 9.07, above.

Preliminary approval for
certain multiple employer
M&P plans

.05 Multiple employer plan applicants who previously received Service approval for
a plan as an M&P plan and who will continue to use an adoption agreement format are
encouraged to request preliminary approval of the provisions of the plan, including the
permitted adoption agreement elections, prior to making the submission described above.
Preliminary approval may be requested by submitting a copy of the plan and trust instrument, including a blank adoption agreement, and a copy of the latest opinion letter to the
volume submitter coordinator for EP Determinations. The request should not include an
application form or user fee. The Service will notify the applicant in writing if preliminary approval is granted, and the complete application may then be filed. Adopting employers will not be entitled to rely on the preliminary approval as to the qualified status of
the plan.

Determination letter
sent to each employer

.06 The Service will mail a copy of the determination letter issued with respect to the
plan to each employer maintaining the plan.

Addition of employers

.07 Employers may continue to rely on a favorable determination letter after another employer commences participation in the plan provided an application for a determination
letter that takes into account the addition of such other employer is submitted by the last
day of the plan year beginning after such other employer commences participation in the
plan. The application 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.
Coverage and other demographic information that may be required with the application
should be provided only with respect to the new employers. The Service will send copies
of the determination letter only to the applicant and the new employers.

SECTION 11. MINOR
AMENDMENT OF
PREVIOUSLY APPROVED
PLAN
Scope.

.01 This section contains procedures for requesting determination letters on the effect of
a minor plan amendment.

Form 6406

.02 Form 6406, Short Form Application for Determination for Minor Amendment of
Employee Benefit Plan, may be filed to request a determination letter on a minor plan
amendment. This form may be used for minor amendments of individually-designed
plans (including volume submitter plans) or permitted changes to adoption agreement
elections in master or prototype or regional prototype plans, provided the changes constitute minor amendments. The Service may also designate other specific amendments
which may be submitted using Form 6406.

Additional information

.03 All applications must be accompanied by a copy of the new amendments, a statement
as to how the amendments affect or change the plan or any other plan maintained by the

2000–1 I.R.B.

205

January 3, 2000

employer, and a copy of the latest determination letter. In the case of a master or prototype, regional prototype, or volume submitter plan, a copy of the opinion, notification, or
advisory letter should also be included. A copy of the plan or trust instrument should not
be filed with the Form 6406.
Minor amendment procedures
may not be used for complex
amendments

.04 Since determination letters issued on minor amendments express an opinion only
as to whether the amendments, in and of themselves, affect the qualification of employee
plans under § 401 or 403(a), the minor amendment procedures cannot be used for complex
amendments that may affect other portions of the plan so as to cause plan disqualification.
Thus, the minor amendment procedures may not be used for an amendment to add a §
401(k) or an ESOP provision to a plan, or to restate a plan. The minor amendment procedures also may not be used to obtain a determination letter on plan amendments involving
plan mergers or consolidations, transfers of assets or liabilities, or plan terminations (including partial terminations). In addition, the minor amendment procedures may not be
used for an amendment that involves a significant change to plan benefits or coverage.

EP Determinations has
discretion to determine
whether use of minor amendment
procedures is appropriate

.05 EP Determinations has discretion to determine whether a plan amendment may be
submitted as a minor plan amendment and may request additional information, including
the filing of a Form 5300 series application if it determines that the application and the
attachments filed under the minor amendment procedures do not contain sufficient information, or that the Form 6406 is inappropriate.

SECTION 12. TERMINATION
OR DISCONTINUANCE OF
CONTRIBUTIONS; NOTICE
OF MERGERS,
CONSOLIDATIONS, ETC.
Scope

Forms

.01 This section contains procedures for requesting determination letters involving plan
termination or discontinuance of contributions. This section also contains procedures regarding required notice of merger, consolidation, or transfer of assets or liabilities.
.02 Required Forms
(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 5303, Application for Determination for Collectively Bargained Plan, is filed
in the case of a multiemployer plan covered by PBGC insurance.
(3) Schedule Q, (Form 5300) Nondiscrimination Requirements, is required to be filed as
an attachment to Form 5310 or Form 5303.
(4) Form 6088, Distributable Benefits from Employee Pension Benefit Plans, is also required of a sponsor or plan administrator of a defined benefit plan or an underfunded defined
contribution plan who files only 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.
(5) Form 5310–A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan
Assets or Liabilities - Notice of Qualified Separate Lines of Business, if required, generally
must be filed not later than 30 days before merger, consolidation or transfer of assets and liabilities. The filing of Form 5310–A will not result in the issuance of a determination letter.

Required demonstration of
nondiscrimination

January 3, 2000

.03 An applicant requesting a determination letter upon termination may not decline to
elect that the plan be reviewed for the average benefit test (if applicable) or the non-

206

2000–1 I.R.B.

requirements

discrimination in amount requirement, as otherwise permitted under sections 5.03 and
5.04, unless the following conditions are satisfied:
(1) With respect to the average benefit test, the plan must have received a favorable determination letter that stated that the plan satisfied the requirements of the test;
(2) With respect to the nondiscrimination in amount requirement, the plan must have received a favorable determination letter that stated that the plan satisfied the requirements of
either a nondesign-based safe harbor or the general test for nondiscrimination in amount;
(3) The favorable determination letter was issued during the immediately preceding three
plan years; and
(4) There has been no material change in the facts (including benefits provided under the
plan and employee demographics) or law upon which the determination was based.

Compliance with
Title IV of ERISA

.04 In the case of plans subject to Title IV of ERISA, a favorable determination letter
issued in connection with a plan’s termination is conditioned on approval that the termination is a valid termination under Title IV of ERISA. Notification by PBGC that a plan
may not be terminated will be treated as a material change of fact.

Termination prior to time
for amending for
change in law

.05 A plan that terminates after the effective date of a change in law, but prior to the date
that amendments are otherwise required, must be amended to comply with the applicable
provisions of law from the date on which such provisions become effective with respect to
the plan. Because such a terminated plan would no longer be in existence by the required
amendment date and therefore could not be amended on that date, such plan must be
amended in connection with the plan termination to comply with those provisions of law
that become effective with respect to the plan on or before the date of plan termination.
(Such amendments include any amendments made after the date of plan termination that
were required in order to obtain a favorable determination letter.) In addition, annuity
contracts distributed from such terminated plans also must meet all the applicable provisions of any change in law. Also see section 9 of Rev. Proc. 97–41.

SECTION 13. GROUP
TRUSTS
Scope

.01 This section provides special procedures for requesting a determination letter on the
qualified status of a group trust under Rev. Rul. 81–100.

Required information

.02 A request for a determination letter on the status of a group trust as described in Rev.
Rul. 81–100 is made by submitting a written request demonstrating how the group trust
satisfies the five criteria listed in Rev. Rul. 81–100, together with the trust instrument and
related documents.

SECTION 14. AFFILIATED
SERVICE GROUPS;
LEASED EMPLOYEES
Scope

Types of requests under
§ 414(m) and § 414(n)

2000–1 I.R.B.

.01 This section provides procedures for determination letter requests on affiliated service group status under § 414(m), and the effect of leased employees on a plan’s qualified
status.
.02 In accordance with section 7.01, an employer that is subject to § 414(m) or (n) may
request a determination letter under the following circumstances: (1) with respect to the
initial qualification of its plan, (2) on a plan amendment, and (3) in certain circumstances,
even though the plan has not been amended (for example, where there has been a change
in membership in the affiliated service group or where the employer did not previously
have reliance).

207

January 3, 2000

Employer must request the
determination under
§ 414(m) or § 414(n)

.03 Generally, a determination letter will cover § 414(m) or § 414(n) only if the
employer requests such determination, and submits with the determination letter application the information specified in section 14.09 or section 14.10 below.

Forms

.04 Form 5300 (with Schedule Q) is submitted for a request on affiliated service group
status or leased employee status. Form 5307 cannot be used for this purpose.

Employer is responsible for
determining status under
§ 414(m) and § 414(n)

.05 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) after the effective date of § 414(m), including § 414(m)(5).
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.

Omission of material fact

.06 Failure to properly indicate that there is or may be an affiliated service group and to
provide the information specified in section 14.09 of this revenue procedure, or failure to
properly indicate that an employer is utilizing the services of leased employees and to provide the information specified in section 14.10, is an omission of a material fact. The failure of the employer to follow the procedures in this section will result in the employer
being unable to rely on any favorable determination letter concerning the effect of §
414(m) or § 414(n) on the qualified status of the plan.

Service will indicate
whether § 414(m) or
§ 414(n) was considered

.07 If the Service considers whether the plan of an employer satisfies the requirements
of § 414(m) or § 414(n), the determination letter issued to the employer will state that
questions arising under § 414(m) or § 414(n) have been considered, and that the plan satisfies qualification requirements relating to that section. Absent such a statement pertaining
to § 414(m) or § 414(n), a determination letter does not apply to any qualification issue
arising by reason of such provisions.

M&P plans; regional
prototype plans

.08 An employer that has adopted an M&P plan or a regional prototype plan (including
a standardized form plan) and wants a determination as to the effect of § 414(m) or §
414(n) on the qualified status of its plan must attach the information required by section
14.09 of this revenue procedure to Form 5300 and submit the information, Form 5300,
Schedule Q, and any other materials necessary to make a determination.

Required information for
§ 414(m) determination

.09 A determination letter issued with respect to a plan’s qualification under § 401(a),
403(a), or 4975(e)(7) will be a determination as to the effect of § 414(m) upon the plan’s
qualified status only if the application includes:
(1) A description of the nature of the business of the employer, specifically whether it is
a service organization or an organization whose principal business is the performance of
management functions for another organization, including the reasons therefor;
(2) The identification of other members (or possible members) of the affiliated service
group;
(3) A description of the business of each member (or possible member) of the affiliated
service group, describing the type of organization (corporation, partnership, etc.) and indicating whether the member is a service organization or an organization whose principal
business is the performance of management functions for the other group member(s);
(4) The ownership interests between the employer and the members (or possible members) of the affiliated service group (including ownership interests as described in §
414(m)(2)(B)(ii) or § 414(m)(6)(B));
(5) A description of services performed for the employer by the members (or possible mem-

January 3, 2000

208

2000–1 I.R.B.

bers) of the affiliated service group, or vice versa (including the percentage of each member’s
(or possible member’s) gross receipts and service receipts provided by such services, if available, and data as to whether such services are a significant portion of the member’s business)
and whether, as of December 13, 1980, it was not unusual for the services to be performed by
employees of organizations in that service field in the United States;
(6) A description of how the employer and the members (or possible members) of the affiliated service group associate in performing services for other parties
(7) In the case of a management organization under § 414(m)(5):
(a) A description of the management functions, if any, performed by the employer
for the member(s) (or possible member(s)) of the affiliated service group, or received by
the employer from any other members (or possible members) of the group (including data
explaining whether the management functions are performed on a regular and continuous
basis) and whether or not it is unusual for such management functions to be performed by
employees of organizations in the employer’s business field in the United States;
(b) If management functions are performed by the employer for the member (or possible members) of the affiliated service group, a description of what part of the employer’s
business constitutes the performance of management functions for the member (or possible member) of the group (including the percentage of gross receipts derived from management activities as compared to the gross receipts from other activities);
(8) A brief description of any other plan(s) maintained by the members (or possible
members) of the affiliated service group, if such other plan(s) is designated as a unit for
qualification purposes with the plan for which a determination letter has been requested;
(9) A description of how the plan(s) satisfies the coverage requirements of § 410(b) if the
members (or possible members) of the affiliated service group are considered part of an
affiliated service group with the employer;
(10) A copy of any ruling issued by the national office on whether the employer is an affiliated service group; a copy of any prior determination letter that considered the effect of
§ 414(m) on the qualified status of the employer’s plan; 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

.10 Unless the plan provides that all leased employees within the meaning of § 414(n)(2)
are treated as common law employees for all purposes under the plan, a determination letter issued with respect to the plan’s qualification under § 401(a), 403(a), or 4975(e)(7) will
be a determination as to the effect of § 414(n) upon the plan’s qualified status only if 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);
(4) A description of facts and circumstances relevant to a determination of whether such
leased employees’ services are performed under primary direction or control by the recipient organization (including whether the leased employees are required to comply with instructions of the recipient about when, where, and how to perform the services, whether
the services must be performed by particular persons, whether the leased employees are
subject to the supervision of the recipient, and whether the leased employees must perform

2000–1 I.R.B.

209

January 3, 2000

services in the order or sequence set by the recipient); and
(5) If the recipient organization is relying on any qualified plan(s) maintained by the employee leasing organization for purposes of qualification of the recipient organization’s
plan, a description of such plan(s) (including a description of the contributions or benefits
provided for all leased employees which are attributable to services performed for the recipient organization, plan eligibility, and vesting).
SECTION 15. WAIVER OF
MINIMUM FUNDING
Scope

.01 This section provides procedures with respect to defined contribution plans for requesting a waiver of the minimum funding standard account and requesting a determination letter on any plan amendment required for the waiver.

Applicability of Rev.
Proc. 94–41

.02 The procedures of Rev. Proc. 94–41, 1994–1 C.B. 711, apply to the request for
a waiver of the minimum funding requirement.

Waiver and determination
letter request submitted
to EP Technical

.03 Under this section, both the request for a waiver ruling and the request for a
determination letter on the effect of any amendment necessary to satisfy section 3 of
Rev. Rul. 78–223, 1978–1 C.B. 125, must be submitted by the taxpayer to EP Technical
where it will be treated as a mandatory request for technical advice. The request that is
submitted to EP Technical must include the following:
(1) All the procedural requirements described in section 2 of Rev. Proc. 94–41 must be
satisfied;
(2) The submission must include a completed Form 5300 (with Schedule Q) and all necessary documents, plan amendments, and information required by the Form 5300 and by
this revenue procedure for approval of the plan amendments; and
(3) The request and the applicable user fee (required by Rev. Proc. 2000–8) for both the
waiver request and the determination letter request should be sent to:
Internal Revenue Service
Tax Exempt and Government Entities Division
Attention: T:EP:RA
P.O. Box 14073
Ben Franklin Station
Washington, D.C. 20044
Additional information sent after the initial request should be sent to:
Chief, Actuarial
T:EP:RA:T:A
Internal Revenue Service
1111 Constitution Ave., N.W.
Washington, D.C. 20224

Handling of the request

.04 The waiver request will be handled by the EP Technical as follows:
(1) The waiver request and supporting documents will be forwarded to Actuarial,
T:EP:RA:T:A, which will treat the request as a technical advice on the qualification issue
with respect to the plan provisions necessary to satisfy section 3 of Rev. Rul. 78–223.
(2) EP Determinations will be notified of the request. In order not to delay the processing of the request, all materials relating to the determination letter request will be forwarded by EP Technical to EP Determinations for consideration while the technical advice

January 3, 2000

210

2000–1 I.R.B.

request is completed.
(3) EP Technical will consider both the application for a funding waiver and the proposed plan amendment. 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 EP Determinations. EP Determinations 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 an 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 EP Determinations does not ask for reconsideration of the technical advice memorandum within 10 working days, Actuarial will issue the waiver ruling. This
ruling will not contain the caveat described in section 3.02 of Rev. Proc. 94–41.
Interested party notice
and comment

.05 The notice and comment requirements for interested parties provided in sections
17 and 18 of this revenue procedure must be satisfied. Comments are to be forwarded to
EP Determinations. With respect to the waiver request the notice requirements applicable
to waiver requests found in Rev. Proc. 94–41 must be satisfied.

When waiver request
should be submitted

.06 In the case of a plan other than a multiemployer plan, no waiver may be granted
under § 412(d) with respect to any plan for any plan year unless an application therefor is
submitted to the Service not later than the 15th day of the third month beginning after the
close of such plan year. The Service may not extend this 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 which has not yet ended, the applicant
may have difficulty in furnishing sufficient current evidence in support of the request. For
this reason it is generally advisable that such advance request be submitted no earlier than
180 days prior to the end of the plan year for which the waiver is requested.

SECTION 16. SECTION
401(h) AND § 420
DETERMINATIONS LETTERS
Scope

.01 This section provides procedures for requesting determination letters (i) with respect
to whether the requirements of § 401(h) are satisfied in a plan with retiree medical benefit
features and (ii) on plan language that permits, pursuant to § 420, the transfer of assets in a
defined benefit plan to a health benefit account described in § 401(h).

Required Information for
§ 401(h) determination

.02 EP Determinations will issue a determination letter that considers whether the
requirements of § 401(h) are satisfied in a plan with retiree medical benefit features only if
the plan sponsor’s application includes, in addition to the application forms and any other
material required by this revenue procedure, a cover letter that requests consideration of §
401(h). The cover letter must specifically state that consideration is being requested with
regard to § 401(h) in addition to other matters under § 401(a) and must specifically state
the location of plan provisions that satisfy the requirements of § 401(h). Part I of the
checklist in the Appendix of this revenue procedure may be used to identify the location of
relevant plan provisions. Form 6406 may not be used to request a determination letter that
considers § 401(h).

Required informaiton
for §420 determination

.03 EP Determinations will consider the qualified status of plan language designed to
comply with § 420 only if the plan sponsor requests such consideration in a cover letter.
The cover letter must specifically state (i) whether consideration is being requested only
with regard to § 420, or (ii) whether consideration is being requested with regard to § 420
in addition to other matters under § 401(a). (If consideration of other matters under §

2000–1 I.R.B.

211

January 3, 2000

401(a) is being requested, the application forms and other material required by this revenue procedure must also be submitted. Form 6406 may not be used for this purpose.)
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 identify the location of relevant plan provisions.
(1) The plan must include a health benefits account as described in § 401(h).
(2) The plan must provide that transfers shall be limited to transfers of “excess assets” as
defined in § 420(e)(2).
(3) The plan must provide that only one transfer may be made in a taxable year. However, for purposes of determining whether the rule in the preceding sentence is met, a plan
may provide that a transfer will not be taken into account if it is a transfer that:
(a) Is made after the close of the taxable year preceding the employer’s first taxable
year beginning after December 31, 1990, and before the earlier of (i) the due date (including extensions) for the filing of the return of tax for such preceding year, or (ii) the date
such return is filed; and
(b) Does not exceed the expenditures of the employer for qualified current retiree
health liabilities for such preceding taxable year.
(4) The plan must provide that the amount transferred shall not exceed the amount which
is reasonably estimated to be the amount the employer will pay out (whether directly or
through reimbursement) of the health benefit account during the taxable year of the transfer for “qualified current retiree health liabilities”, as defined in § 420(e)(1).
(5) The plan must provide that no transfer will be made after December 31, 2005.
(6) The plan must provide that any assets transferred, and any income allocable to such
assets, shall be used only to pay qualified current retiree health liabilities for the taxable
year of transfer.
(7) The plan must provide that any amounts transferred to a health benefits account (and
income attributable to such amounts) which are not used to pay qualified current retiree
health liabilities shall be transferred back to the defined benefit portion of the plan.
(8) The plan must provide that the amounts paid out of a health benefits account will be
treated as paid first out of transferred assets and income attributable to those assets.
(9) The plan must provide that the accrued pension benefits for participants and beneficiaries must become nonforfeitable as if the plan had terminated immediately prior to the
transfer (or in the case of a participant who separated during the 1-year period ending on
the date of transfer immediately before such separation). In the case of a transfer described in § 420(b)(4) that relates to a prior year, the plan must provide that the accrued
benefit of a participant who separated from service during the taxable year to which such
transfer relates will be recomputed and treated as nonforfeitable immediately before such
separation.
(10) The plan must provide that a transfer will be permitted only if each group health
plan or arrangement under which health benefits are provided contains provisions satisfying § 420(c)(3). The plan must define “applicable employer cost”, “cost maintenance period”, and “benefit maintenance period”, as applicable, consistent with §
420(c)(3), as amended by TREA ‘99. If applicable, the provisions of the plan must also
reflect the transition rule in § 535(c)(2) of TREA ‘99. The plan may provide that §
420(c)(3) is satisfied separately with respect to individuals eligible for benefits under

January 3, 2000

212

2000–1 I.R.B.

Title XVIII of the Social Security Act at any time during the taxable year and with respect to individuals not so eligible..
(11) The plan must provide that transferred assets cannot be used for key employees (as
defined in § 416(i)(1)).

PART II. INTERESTED PARTY NOTICE AND COMMENT
SECTION 17. WHAT RIGHTS
TO NOTICE AND COMMENT
DO INTERESTED PARTIES
HAVE?
Rights of interested parties

.01 Persons who qualify as interested parties under § 1.7476–1(b), have the following
rights:
(1) To receive notice, in accordance with section 18 below, that an application for an advance determination will be filed regarding the qualification of plans described in §§ 401,
403(a), 409 and/or 4975(e)(7);
(2) To submit written comments with respect to the qualification of such plans to the
Service;
(3) To request the Department of Labor to submit a comment to the Service on behalf of
the interested parties; and
(4) To submit written comments to the Service on matters with respect to which the Department of Labor was requested to comment but declined.

Comments by interested parties

.02 Comments submitted by interested parties must be received by EP Determinations
by the 45th day after the day on which the application for determination is received by EP
Determinations. (However, see sections 17.03 and 17.04 for filing deadlines where the
Department of Labor has been requested to comment). Such comments must be in writing, signed by the interested parties or by an authorized representative of such parties (as
provided in section 9.02(11) of Rev. Proc. 2000–4), addressed to EP Determinations 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 administrator;
(4) Whether the parties submitting the comment are:
(a) Employees eligible to participate under the plan,
(b) Employees with accrued benefits under the plan, or former employees with
vested benefits under the plan,
(c) Beneficiaries of deceased former employees who are eligible to receive or are
currently receiving benefits under the plan,
(d) Employees not eligible to participate under the plan.
(5) The specific matters raised by the interested parties on the question of whether the

2000–1 I.R.B.

213

January 3, 2000

plan meets the requirements for qualification involving §§ 401 and 403(a), and how such
matters relate to the interests of the parties making the comment; and
(6) The address of the interested party submitting the comment (or if a comment is submitted
jointly by more than one party, the name and address of a designated representative) to which all
correspondence, including a notice of the 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 the comment as the representative for receipt of correspondence, a notice
of determination mailed to any interested party who submitted the comment shall be notice to all
the interested parties who submitted the comment for purposes of § 7476(b)(5) of the Code.
Requests for DOL to
submit comments

.03 A request to the Department of Labor to submit to EP Determinations a comment
pursuant to § 3001(b)(2) of ERISA must be made in accordance with the following procedures.
(1) The request must be received by the Department of Labor by the 25th day after the
day the application for determination is received by EP Determinations. However, if the
parties requesting the Department to submit a comment wish to preserve the right to comment to EP Determinations in the event the Department declines to comment, the request
must be received by the Department by the 15th day after the day the application for determination is received by EP Determinations.
(2) The request to the Department of Labor to submit a comment to EP Determinations must:
(a) Be in writing;
(b) Be signed as provided in section 17.02 above;
(c) Contain the names of the interested parties requesting the Department to comment and the address of the interested party or designated representative to whom all correspondence with respect to the request should be sent. See also section 17.02(6) above;
(d) Contain the information prescribed in section 17.02(2), (3), (4), (5) and (6)
above;
(e) Indicate that the application was or will be submitted to EP Determinations at
the address in section 6.17;
(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
Pension and Welfare Benefits Administration
U.S. Department of Labor,
200 Constitution Avenue, N.W.,
Washington, D.C. 20210
Attention: 3001 Comment Request

Right to comment if DOL
declines to comment

January 3, 2000

.04 If a request described in 17.03 is made and the Department of Labor notifies the
interested parties making the request that it declines to comment on a matter concerning
qualification of the plan which was raised in the request, the parties submitting the request
may still submit a comment to EP Determinations on such matter. The comment must be
received by the later of the 45th day after the day the application for determination is re-

214

2000–1 I.R.B.

ceived by EP Determinations or the 15th day after the day on which notification is given
by the Department that it declines to submit a comment on such matter. (See section 17.07
for the date of notification.) In no event may the comment be received later than the 60th
day after the day the application for determination was received. Such a comment must
comply with the requirements of section 17.02 and include a statement that the comment
is being submitted on matters raised in a request to the Department upon which the Department declined to comment.
Confidentiality of comments

.05 For rules regarding the confidentiality of contents of written comments submitted by
interested parties to the Service pursuant to section 17.02 or 17.04, see § 601.201(o)(5) of
the Statement of Procedural Rules.

Availability of comments

.06 For rules regarding the availability to the applicant of copies of all comments on the
application submitted pursuant to section 17.01(1), (2), (3) and (4) of this revenue procedure, see § 601.201(o)(5) of the Statement of Procedural Rules.

When comments are

.07 An application for an advance determination, a comment to EP Determinations, or a request to the Department of Labor shall be deemed made when it is received by EP Determinations, or the Department. Notification by the Department that it declines to comment shall be
deemed given when it is received by the interested party or designated representative. The notice described in section 18.01 below shall be deemed given when it is given in person, posted as
prescribed in the regulations under § 7476, or received through the mail or a private delivery
service that has been designated under § 7502(f). In the case of an application, comment, request, notification, or notice that is sent by mail or designated private delivery service, 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 described in §§ 401, 403(a), 409 and 4975(e)(7) is to be made must be given to
all interested parties in the manner set forth in § 1.7476–2(c) and in accordance with the
requirements of this section.

Time when notice
must be given

.02 When the notice referred to in section 18.01 is given by posting or in person, such
notice must be given not less than 7 days nor more than 21 days prior to the day the application for a determination is made. When the notice is given by mailing or designated private delivery service, it should be given not less than 10 days nor more than 24 days prior
to the day the application for a determination is made. If, however, an application is returned to the applicant for failure to adequately satisfy the notification requirements with
respect to a particular group or class of interested parties, the applicant need not cause notice to be given to those groups or classes of interested parties with respect to which the
notice requirement was already satisfied merely because, as a result of the resubmission of
the application, the time limitations of this subsection would not be met.

Content of notice

.03 The notice referred to in section 18.01 shall be in writing and shall contain the following information:
(1) A brief description identifying the class or classes of interested parties to whom the
notice is addressed (e.g., all present employees of the employer, all present employees eligible to participate);
(2) The name of the plan, the plan identification number, and the name of the plan administrator;

2000–1 I.R.B.

215

January 3, 2000

(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
status of the plan;
(7) A statement that any person to whom the notice is addressed is entitled to submit, or
request the Department of Labor to submit, to EP Determinations, a comment on the question of whether the plan meets the requirements of § 401 or 403(a); that two or more such
persons may join in a single comment or request; and that if such persons request the Department of Labor to submit a comment and the Department of Labor declines to do so
with respect to one or more matters raised in the request, the persons may still submit a
comment to EP Determinations with respect to the matters on which the Department declines to comment. The Pension Benefit Guaranty Corporation (PBGC) may also submit
comments. In every instance where there is either a final adverse termination or a distress
termination, the Service formally notifies the PBGC for comments;
(8) The specific dates by which a comment to EP Determinations or a request to the Department of Labor must be received in order to preserve the right of comment (see section
17 above);
(9) The number of interested parties needed in order for the Department of Labor to
comment; and
(10) Except to the extent that the additional informational material required to be made
available by sections 18.05 through 18.09 are included in the notice, a description of a reasonable procedure whereby such additional informational material will be available to interested parties (see section 18.04). (Examples of notices setting forth the above information, in a case in which the additional information required by sections 18.05 through
18.09 will be made available at places accessible to the interested parties, are set forth in
the Exhibit attached to this revenue procedure.)
Procedures for making
information available
to interested parties

Information to be available
to interested parties

.04 The procedure referred to in section 18.03(10), whereby the additional informational
material required by sections 18.05 through 18.09 will (to the extent not included in the
notice) be made available to interested parties, may consist of making such material available for inspection and copying by interested parties at a place or places reasonably accessible to such parties, or supplying such material in person or by mail, or by a combination
of the foregoing, provided such procedure is immediately available to all interested parties, is designed to supply them with such additional informational material in time for
them to pursue their rights within the time period prescribed, and is available until the earlier of: 1) the filing of a pleading commencing a declaratory judgment action under § 7476
with respect to the qualification of the plan; or 2) the 92nd day after the day the notice of
final determination is mailed to the applicant. Reasonable charges to interested parties for
copying and/or mailing such additional informational material are permissible.
.05 Unless provided in the notice, or unless section 18.06 applies, there shall be made
available to interested parties under a procedure described in section 18.04:
(1) An updated copy of the plan and the related trust agreement (if any); and
(2) The application for determination.

January 3, 2000

216

2000–1 I.R.B.

Special rules if there are
less than 26 participants

.06 If there would be less than 26 participants in the plan, as described in the application
(including, as participants, former employees with vested benefits under the plan, beneficiaries of deceased former employees currently receiving benefits under the plan, and employees who would be eligible to participate upon making mandatory employee contributions, if any), then in lieu of making the materials described in section 18.05 available to
interested parties who are not participants (as described above), there may be made available to such interested parties a document containing the following information:
(1) A description of the plan’s requirements respecting eligibility for participation and
benefits and the plan’s benefit formula;
(2) A description of the provisions providing for nonforfeitable benefits;
(3) A description of the circumstances which may result in ineligibility, or denial or loss
of benefits;
(4) A description of the source of financing of the plan and the identity of any organization through which benefits are provided;
(5) A description of any optional forms of benefits described in § 411(d)(6) which have
been reduced or eliminated by plan amendment; and
(6) Whether the applicant is claiming in the application that the plan meets the requirements of § 410(b)(1)(A), and, if not, the coverage schedule required by the application in
the case of plans not meeting the requirements of such section.
However, once an interested party or designated representative receives a notice of final
determination, the applicant must, upon request, make available to such interested party
(whether or not the plan has less than 26 participants) an updated copy of the plan and related trust agreement (if any) and the application for determination.

Information described in
§ 6104(a)(1)(D) should
not be included

.07 Information of the type described in § 6104(a)(1)(D) should not be included in the
application, plan, or related trust agreement submitted to the Service. Accordingly, such
information should not be included in any of the material required by section 18.05 or
18.06 to be available to interested parties.

Availability of additional
information to interested
parties

.08 Unless provided in the notice, there shall be made available to interested parties
under a procedure described in section 18.04, any additional document dealing with the
application which is submitted by or for the applicant to the Service, or furnished by the
Service to the applicant; provided, however, if there would be less than 26 participants in
the plan as described in the application (including, as participants, former employees with
vested benefits under the plan, beneficiaries of deceased former employees currently receiving benefits under the plan, and employees who would be eligible to participate upon
making mandatory employee contributions, if any), such additional documents need not
be made available to interested parties who are not participants (as described above) until
they, or their designated representative, receive a notice of final determination. The applicant may also withhold from such inspection and copying information described in §
6104(a)(1)(C) and (D) which may be contained in such additional documents.

Availability of notice to
interested parties

.09 Unless provided in the notice, there shall be made available to all interested parties
under a procedure described in section 18.04 the material described in sections 17.02
through 17.07 above.

2000–1 I.R.B.

217

January 3, 2000

PART III. PROCESSING DETERMINATION LETTER REQUESTS
SECTION 19. HOW DOES
THE SERVICE HANDLE
DETERMINATION LETTER
REQUESTS?
Oral advice

.01 Oral advice.
(1) The Service does not issue determination letters on oral requests. However, personnel in EP Determinations ordinarily will discuss with taxpayers or their representatives inquiries regarding: substantive tax issues; whether the Service will issue a determination
letter on particular issues; and questions relating to procedural matters about submitting
determination letter requests. Any discussion of substantive issues will be at the discretion
of the Service on a time available basis, will not be binding on the Service, and cannot be
relied upon as a basis of obtaining retroactive relief under the provisions of § 7805(b). A
taxpayer may seek oral technical assistance from a taxpayer service representative when
preparing a return or report, under established procedures. Oral advice is advisory only,
and the Service is not bound to recognize it in the examination of the taxpayer’s return.
(2) The advice or assistance furnished, whether requested by personal appearance, telephone, or correspondence will be limited to general procedures, or will direct the inquirer
to source material, such as pertinent Code provisions, regulations, revenue procedures,
and revenue rulings that may aid the inquirer in resolving the question or problem.

Conferences

Determination letter based
solely on administrative
record

.02 EP Determinations may grant a conference upon written request from a taxpayer or his
representative, provided the request shows that a substantive plan, amendment, etc., has been
developed for submission to the Service, but that special problems or issues are involved, and
EP Determinations concludes that a conference would be warranted in the interest of facilitating review and determination when the plan, etc., is formally submitted. See section 6.19 and
6.20 regarding the right to a status conference on applications pending for at least 270 days.
.03 Administrative Record
(1) In the case of a request for a determination letter, the determination of EP Determinations or the appeals office on the qualification or non-qualification of the retirement plan
shall be based solely upon the facts contained in the administrative record. The administrative record shall consist of the following:
(a) The request for determination, the retirement plan and any related trust instruments, and any written modifications or amendments made by the applicant during the
proceedings within the Service;
(b) All other documents submitted to the Service by, or on behalf of, the applicant
with respect to the request for determination;
(c) All written correspondence between the Service and the applicant with respect
to the request for determination and any other documents issued to the applicant from the
Service;
(d) All written comments submitted to the Service pursuant to sections 17.01(2),
(3), and (4) above, and all correspondence relating to comments submitted between the
Service and persons (including PBGC and the Department of Labor) submitting comments pursuant to sections 17.01(2), (3), and (4) above; and
(e) In any case in which the Service makes an investigation regarding the facts as
represented or alleged by the applicant in the request for determination or in comments
submitted pursuant to sections 17.01(2), (3), and (4) above, a copy of the official report of
such investigation.

January 3, 2000

218

2000–1 I.R.B.

(2) The administrative record shall be closed upon the earlier of the following events:
(a) The date of mailing of a notice of final determination by the Service with respect
to the application for determination; or
(b) The filing of a petition with the United States Tax Court seeking a declaratory
judgment with respect to the retirement plan
(3) Any oral representation or modification of the facts as represented or alleged in the
application for determination or in a comment filed by an interested party, which is not reduced to writing shall not become a part of the administrative record and shall not be taken
into account in the determination of the qualified status of the retirement plan by EP Determinations or the appeals office.
Notice of final determination

.04 In the case of final determination, the notice of final determination:
(1) Shall be the letter issued by EP Determinations or the appeals office which states that
the applicant’s plan satisfies the qualification requirements of the Code. The favorable determination letter will be sent by certified or registered mail where either an interested
party, the Department of Labor, or the PBGC has commented on the application for determination.
(2) Shall be the letter issued, by certified or registered mail, by EP Determinations or the
appeals office subsequent to a letter of proposed determination, stating that the applicant’s
plan fails to satisfy the qualification requirements of the Code.

Issuance of the notice
of final determination

.05 EP Determinations or the appeals office will send the notice of final determination to
the applicant, to the interested parties who have previously submitted comments on the application to the Service (or to the persons designated by them to receive such notice), to
the Department of Labor in the case of a comment submitted by the Department, and to
PBGC if it has filed a comment.

SECTION 20. EXHAUSTION
OF ADMINISTRATIVE
REMEDIES
In general

.01 For purposes of § 7476(b)(3), a petitioner shall be deemed to have exhausted the administrative remedies available within the Service upon the completion of the steps described in sections 20.02, 20.03, 20.04, or 20.05 subject, however, to sections 20.06 and
20.07. If applicants, interested parties, or the PBGC do not complete the applicable steps
described below, they will not have exhausted their respective available administrative
remedies as required by § 7476(b)(3) and will, thus, be precluded from seeking declaratory judgment under § 7476 except to the extent that section 20.05 or 20.08 applies.

Steps for exhausting
administrative remedies

.02 In the case of an applicant, with respect to any matter relating to the qualification
of a plan, the steps referred to in section 20.01 are:
(1) Filing a completed application with EP Determinations pursuant to this revenue procedure;
(2) Complying with the requirements pertaining to notice to interested parties as set
forth in this revenue procedure and § 1.7476–2 of the regulations; and,
(3) Appealing to the appeals office pursuant to paragraph 601.201(o)(6) of the Statement
of Procedural Rules, in the event a notice of proposed adverse determination is issued by
EP Determinations.

2000–1 I.R.B.

219

January 3, 2000

Applicant’s request for
7805(b) relief

.03 Consideration of relief under § 7805(b) will be included as one of the applicant’s
steps in exhausting administrative remedies only if the applicant requests EP Determinations to seek technical advice from EP Technical on the applicability of such relief. The
applicant’s request must be made in writing according to the procedures for requesting
technical advice (see section 19 of Rev. Proc. 2000–5).

Interested parties

.04 In the case of an interested party or the PBGC, the steps referred to in section 20.01
are, with respect to any matter relating to the qualification of the plan, submitting to EP
Determinations a comment raising such matter in accordance with section 17.01(2) above,
or requesting the Department of Labor to submit to EP Determinations a comment with respect to such matter in accordance with section 17.01(3) and, if the Department of Labor
declines to comment, submitting the comment in accordance with section 17.01(4) above,
so that it may be considered by the Service through the administrative process.

Deemed exhaustion of
administrative remedies

.05 An applicant, an interested party, or the PBGC shall in no event be deemed to have
exhausted administrative remedies prior to the earlier of:
(1) The completion of those steps applicable to each as set forth in sections 20.01, 20.02,
20.03 or 20.04, which constitute their administrative remedies; or,
(2) The expiration of the 270-day period described in § 7476(b)(3), which period shall be
extended in a case where there has not been a completion of all the steps referred to in section 20.02 and the Service has proceeded with due diligence in processing the application
for determination.

Service must act on appeal

.06 The step described in section 20.02(3) will not be considered completed until the
Service has had a reasonable time to act upon the appeal.

Service must act on
§ 7805(b) request

.07 Where the applicant has requested EP Determinations to seek technical advice on the
applicability of § 7805(b) relief, the applicant’s administrative remedies will not be considered exhausted until EP Technical has had a reasonable time to act upon the request for
technical advice.

Effect of technical
advice request

.08 The step described in section 20.02(3) will not be available or necessary with respect
to any issue on which technical advice has been obtained from EP Technical.

SECTION 21. WHAT EFFECT
WILL AN EMPLOYEE
PLAN DETERMINATION
LETTER HAVE?
Scope of reliance on
determination letter

January 3, 2000

.01 A determination letter issued pursuant to this revenue procedure contains only the
opinion of the Service as to the qualification of the particular plan involving the provisions
of §§ 401 and 403(a) and the status of a related trust, if any, under § 501(a). Such a determination letter is based on the facts and demonstrations presented to the Service in connection with the application for the determination letter and may not be relied upon after a
change in material fact or the effective date of a change in law, except as provided. For
example, a determination letter issued pursuant to this revenue procedure may not be relied upon after a significant change in plan coverage resulting from the operation of the
plan. 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 may adversely affect the reliance which would otherwise be obtained through the issuance by the Service of a favorable determination letter. Similarly, failure to accurately
provide any of the information called for on any form required by this revenue procedure
may result in no reliance. Applicants are advised to retain copies of all demonstrations
and supporting data submitted with their applications. Failure to do so may limit the
scope of reliance.

220

2000–1 I.R.B.

Effect of determination letter
on minor plan amendment

.02 Determination letters issued on minor amendments to plans and trusts under this
revenue procedure will merely express an opinion whether the amendment, in and of itself, affects the existing status of the plan’s qualification and the exempt status of the related trust. In no event should such a determination letter be construed as an opinion on
the qualification of the plan as a whole and the exempt status of the related trust as a
whole.

Sections 13 and 14 of
Rev. Proc. 2000–4 applicable

.03 Except as otherwise provided in this section, determination letters referred to in
sections 21.01 and 21.02 are governed, generally, by the provisions of sections 13 and 14
of Rev. Proc. 2000–4.

Effect of subsequent
publication of revenue
ruling, etc.

.04 The prior qualification of a plan as adopted by an employer will not be considered
to be adversely affected by the publication of a revenue ruling, a revenue procedure, or
an administrative pronouncement within the meaning of § 1.6661–3(b)(2) of the regulations where:
(1) The plan was the subject of a favorable determination letter and the request for that
letter contained no misstatement or omission of material facts;
(2) The facts subsequently developed are not materially different from the facts on which
the determination letter was based;
(3) There has been no change in the applicable law; and
(4) The employer that established the plan acted in good faith in reliance on the determination letter.
However, all such plans must be amended to comply with the published revenue ruling for
subsequent years. Unless specifically stated otherwise in the revenue ruling or in other
published guidance of general applicability, the conforming amendment to an individually-designed plan must be adopted before the end of the first plan year that begins after
the revenue ruling, revenue procedure, or administrative pronouncement is published in
the Internal Revenue Bulletin and must be effective, for all purposes, not later than the
first day of the first plan year beginning after the revenue ruling is published. For the rule
as to the conforming amendment to an M&P plan and a regional prototype plan, see section 14 of Rev. Proc. 89–9 and Rev. Proc. 89–13, as modified by Rev. Proc. 90–21, sections 8.03–8.08 of Rev. Proc. 91–66, and Rev. Proc. 92–41.

Determination letter does
not apply to taxability issues

.05 While a favorable determination letter may serve as a basis for determining
deductions for employer contributions thereunder, it is not to be taken as an indication that
contributions are necessarily deductible as made. This latter determination can be made
only upon an examination of the employer’s tax return, in accordance with the limitations,
and subject to the conditions, of § 404.

SECTION 22. EFFECT ON
OTHER REVENUE
PROCEDURES

Rev. Proc. 99–6 is superseded.

SECTION 23. EFFECTIVE
DATE

This revenue procedure is effective January 10, 2000.

2000–1 I.R.B.

221

January 3, 2000

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
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 control number.
The collections of information in this revenue procedure are in sections 6.16, 6.18, 6.19,
6.20, 7.04, 9.08, 10.05, 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 business or other for-profit institutions.
The estimated total annual reporting and/or recordkeeping burden is 164,986 hours.
The estimated annual burden per respondent/recordkeeper varies from 1 hour to 40
hours, depending on individual circumstances, with an estimated average of 2.04 hours.
The estimated number of respondents and/or recordkeepers is 80,803.
The estimated annual frequency of responses (used for reporting requirements only) is
once every three years.
Books or records relating to a collection of information must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

DRAFTING INFORMATION

The principal author of this revenue procedure is James Flannery of Employee Plans, Tax
Exempt and Government Entities Division. For further information regarding this revenue
procedure, contact the Employee Plans telephone assistance service between the hours of
1:30 and 3:30 p.m. Eastern time, Monday through Thursday, on (202) 622-6074 (not a
toll-free call).

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.

January 3, 2000

222

2000–1 I.R.B.

EXHIBIT: SAMPLE NOTICE TO INTERESTED PARTIES
1. Notice To:______________________________[describe class or classes of interested parties]
An application is to be made to the Internal Revenue Service for an advance determination on the qualification of the following employee pension benefit plan:
2. __________________________________________________
(name of plan)
3. __________________________________________________
(plan number)
4. __________________________________________________
(name and address of applicant)
5. __________________________________________________
(applicant EIN)
6. __________________________________________________
(name and address of plan administrator)
7. The application will be filed on _______________ for an advance determination as to whether the plan meets the qualification
requirements of § 401 or 403(a) of the Internal Revenue Code of 1986, with respect to the plan’s ________________________
[initial qualification, amendment, termination, or partial termination]. The application will be filed with:
EP Determinations
Internal Revenue Service
P.O. Box 192
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
11. The Department of Labor may not comment on behalf of interested parties unless requested to do so by the lessor of 10 employees or 10 percent of the employees who qualify as interested parties. The number of persons needed for the Department to comment with respect to this plan is _____________________. If you request the Department to comment, your request must be in
writing and must specify the matters upon which comments are requested, and must also include:
(1) the information contained in items 2 through 5 of this Notice; and
(2) the number of persons needed for the Department to comment.

2000–1 I.R.B.

223

January 3, 2000

A request to the Department to comment should be addressed as follows:
Deputy Assistant Secretary
Pension and Welfare Benefits 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 them 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 them within 15 days from the time the Department
notifies you that it will not comment on a particular matter, or by
, whichever is later, but not after
. A request
to the Department to comment on your behalf must be received by it by
if you wish to preserve your
right to comment on a matter upon which the Department declines to comment, or by
if you wish to waive that right.
ADDITIONAL INFORMATION
13. Detailed instructions regarding the requirements for notification of interested parties may be found in sections 17 and 18 of Rev.
Proc. 2000–6. 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
during the hours of
Service; and copies of section 17 of Rev. Proc. 2000–6 are available at
_________________ for inspection and copying. (There is a nominal charge for copying and/or mailing.)

APPENDIX

January 3, 2000

224

2000–1 I.R.B.

Checklist

As part of a § 401(h) or § 420 determination letter request described in section 16 of this revenue procedure the
following checklist may be completed and attached to the determination letter request. If the request relates to §
401(h) but not to § 420, complete Part I only. If the request relates to § 420, complete Parts I and II.

PART I

CIRCLE

SECTION

1. Does the Plan contain a medical benefits account within the meaning of § 401(h) of the
Code? If the medical benefits account is a new provision, items “a” through “h” should
be completed.

Yes No

_______

a. Does the medical benefits account specify the medical benefits that will be available
and contain provisions for determining the amount which 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 account state that amounts contributed must be reasonable
and ascertainable?

Yes No

_______

f. Does the medical benefits account provide for the impossibility of diversion prior to
satisfaction of liabilities (other than item “7” below)?

Yes No

_______

g. Does the medical benefits account provide for reversion upon satisfaction of all
liabilities (other than item “7” below)?

Yes No

_______

h. Does the medical benefits account provide that forfeitures must be applied as soon as
possible to reduce employer contributions to fund the medical benefits?

Yes No

_______

2. Does the Plan limit transfers to “Excess Assets” as defined in § 420(e)(2) of the Code?

Yes No

_______

3. Does the Plan provide that only one transfer may be made in a taxable year (except with
regard to transfers relating to prior years pursuant to § 420(b)(4) of the Code)?

Yes No

_______

4. Does the Plan provide that the amount transferred shall not exceed the amount reasonably
estimated to be paid for qualified current retiree health liabilities?

Yes No

_______

5. Does the Plan provide that no transfer will be made after December 31, 2005?

Yes No

_______

6. Does the Plan provide that transferred assets and income attributable to such assets shall be
used only to pay qualified current retiree health liabilities for the taxable year of transfer?

Yes No

_______

7. Does the Plan provide that any amounts transferred (plus income) that are not used to pay
qualified current retiree health liabilities shall be transferred back to the defined benefit

Yes No

_______

PART II

2000–1 I.R.B.

225

January 3, 2000

portion of the Plan?
8. Does the Plan provide that amounts paid out of a health benefits account will be treated
as paid first out of transferred assets and income attributable to those assets?

Yes No

_______

9. Does the Plan provide that participants’ accrued benefits become nonforfeitable on a
termination basis (i) immediately prior to transfer, or (ii) in the case of a participant who
separated within 1 year before the transfer, immediately before such separation?

Yes No

_______

10. In the case of transfers described in § 420(b)(4) of the Code relating to 1990, does the
Plan provide that benefits will be recomputed and become nonforfeitable for
participants who separated from service in such prior year as described in § 420(c)(2)?

Yes No

_______

11. Does the Plan provide that transfers will be permitted only if each group health plan
or arrangement contains provisions satisfying § 420(c)(3) of the Code, as amended by
TREA ‘99?

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 by TREA ‘99?

Yes No

_______

13. Do the Plan’s provisions reflect the transition rule in § 535(c)(2) of TREA ‘99,
if applicable?

Yes No

_______

14. Does the Plan provide that transferred assets cannot be used for key employees?

Yes No

_______

January 3, 2000

226

2000–1 I.R.B.

26 CFR 601.201: Rulings and determination
letters.

Rev. Proc. 2000–7
SECTION 1. PURPOSE AND NATURE
OF CHANGES
.01 The purpose of this revenue procedure is to update Rev. Proc. 99–7, 1999–1
I.R.B. 226, by listing the current areas of
the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel
(International) that relate to issues on
which the Internal Revenue Service will
not issue letter rulings or determination
letters. For a list of current areas under
the jurisdiction of the Associate Chief
Counsel (Domestic) and the Associate
Chief Counsel (Employee Benefits and
Exempt Organization) that relate to issues
on which the Service will not issue letter
rulings or determination letters, see Rev.
Proc. 2000–3, this Bulletin.
.02 Changes
(1) New section 4.02(2), dealing with
section 936, has been added to the ordinarily no-rule area to indicate that the Service generally will not issue letter rulings
as to whether a taxpayer uses a correct
North American Industry Classification
System (NAICS) code or Standard Industrial Classification (SIC) code.
SECTION 2. BACKGROUND AND
SCOPE OF APPLICATION
.01 Background
In the interest of sound tax administration, the Service answers inquiries from
individuals and organizations regarding
their status for tax purposes and the tax
effects of their acts or transactions before
the filing of returns or reports that are required by the Internal Revenue Code.
There are, however, areas where the Service will not issue letter rulings or determination letters, either because the issues
are inherently factual or for other reasons.
These areas are set forth in sections 3 and
4 of this revenue procedure.
Section 3 lists areas in which letter rulings and determination letters will not be issued under any circumstances. Section 4
lists areas in which they will not ordinarily
be issued; in these areas, unique and compelling reasons may justify issuing a letter
ruling or determination letter. A taxpayer

2000–1 I.R.B.

who plans to request a letter ruling or determination letter in an area described in Section 4 should contact (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 encouraged since it will enable Office personnel to arrive more quickly
at an understanding of the unique facts of
each case. A taxpayer who contacts the Office by telephone may be requested to provide a written submission. The Service may
provide a general information letter in response to inquiries in areas on either list.
These lists are not all-inclusive. Future
revenue procedures may add or delete
items. The Service may also decline to rule
on an individual case for reasons peculiar to
that case, and such decision will not be announced in the Internal Revenue Bulletin.
.02 Scope of Application
This revenue procedure does not preclude a district director, the Assistant
Commissioner (International), or Chief,
Appeals Offices from submitting requests
for technical advice in the areas listed to
the Office.
SECTION 3. AREAS IN WHICH
RULINGS OR DETERMINATION
LETTERS WILL NOT BE ISSUED
.01 Specific Questions and Problems
(1) Section 871(g). - Special Rules for
Original Issue Discount. - Whether a debt
instrument having original issue discount
within the meaning of § 1273 of the Internal Revenue Code 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).
(2) Section 894. - Income Affected by
Treaty.- Whether a person that is a resident of a foreign country and derives income from the United States is entitled to
benefits under the United States income
tax treaty with that foreign country pursuant to the limitation on benefits article.
However, the Service may rule regarding
the legal interpretation of a particular provision within the relevant limitation on
benefits article.

227

(3) Section 954. - Foreign Base Company Income. - The effective rate of tax
that a foreign country will impose on income.
(4) Section 1503(d).-Dual Consolidated Loss.-Whether the conditions under
the regulations for excepting a net operating loss of a dual resident corporation
from the definition of a dual consolidated
loss, or for rebutting the presumption that
an event constitutes a triggering event for
purposes of § 1.1503–2(g)(2)(iii)(B), are
satisfied.
.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 Rev.
Proc. 88–50, 1988–2 C.B. 711, and section 5.05 of Rev. Proc. 2000–1.
(2) The federal tax consequences of
proposed federal, state, local, municipal,
or foreign legislation.
(3) Whether reasonable cause exists
under Subtitle F (Procedure and Administration) of the Code.
(4) Whether a proposed transaction
would subject a taxpayer to criminal
penalties.
(5) Any area where the ruling request
does not comply with the requirements of
Rev. Proc. 2000–1.
(6) 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.
(7) A “comfort” ruling will not be issued with respect to an issue that is
clearly and adequately addressed by
statute, regulations, decisions of a court,
tax treaties, revenue rulings, or revenue
procedures absent extraordinary circumstances (e.g., a request for a ruling required by a governmental regulatory authority in order to effectuate the
transaction.)
SECTION 4. AREAS IN WHICH
RULING OR DETERMINATION
LETTERS WILL NOT ORDINARILY
BE ISSUED
.01 Specific Questions and Problems
(1) Section 367(a). - Transfers of Property from the United States. - Whether an
oil or gas working interest is transferred
from the United States for use in the ac-

January 3, 2000

tive conduct of a trade or business for purposes of § 367(a)(3); and whether any
other property is so transferred, where the
determination requires extensive factual
inquiry.
(2) Section 367(b). - Other Transfers. Whether a foreign corporation is considered a corporation for purposes of any
nonrecognition provision listed in §
367(b), and related issues, unless the ruling presents a significant legal issue or
subchapter C rulings are requested in the
context of reorganizations or liquidations
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 conduct of a
trade or business within the United States;
whether an instrument is a security as defined in § 1.864–2(c)(2); whether a taxpayer
effects transactions in the United States in
stocks or securities under § 1.864–2(c)(2);
whether an instrument or item is a commodity as defined in § 1.864–2(d)(3); and for
purposes of § 1.864–2(d)(1) and (2),
whether a commodity is of a kind customarily dealt in on an organized commodity exchange, and whether a transaction is of a
kind customarily consummated at such
place.
(4) Section 871. - Tax on Nonresident
Alien Individuals. - Whether the income
earned on contracts that do not qualify as
annuities or life insurance contracts because of the limitations imposed by §
72(s) and § 7702(a) is portfolio interest as
defined in § 871(h).
(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 contracts because of the limitations imposed
by § 72(s) and § 7702(a) is portfolio interest as defined in§ 881(c).
(6) Section 892. - Income of Foreign
Governments and of International Organizations. - Whether income received by
local governmental authorities of the
United Kingdom from certain United
States investments of money allocable to
their superannuation funds is exempt
from federal income taxation.
(7) Section 892. - Income of Foreign
Governments and of International Organizations. - Whether a foreign government

January 3, 2000

is engaged in commercial activities for
purposes of § 892, and whether income
received by a foreign government is derived from the conduct of such commercial activities.
(8) Section 893. - Compensation of Employees of Foreign Governments and International Organizations. - Whether a foreign government is engaged in commercial
activities for purposes of § 893, and
whether the services of an employee of a
foreign government are primarily in connection with such commercial activities.
(9) Section 894. - Income Affected by
Treaty. - Whether a taxpayer has a permanent 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 the income received by
a nonresident alien student for services
performed for a university or other educational institution is exempt from federal
income tax or withholding under United
States income tax treaties with Belgium,
Peoples Republic of China, Cyprus,
Egypt, Federal Republic of Germany,
France, Iceland, Indonesia, Japan, Korea,
Morocco, Netherlands, Norway, Pakistan,
Philippines, Poland, Romania, Spain,
Trinidad and Tobago, and Tunisia. Rev.
Proc. 87-8, 1987–1 C.B. 366, as modified
by Rev. Proc. 93–22, 1993–1 C.B. 535.
(11) Section 894. - Income Affected by
Treaty. - Whether the income received by
a nonresident alien performing research
or teaching at a university is exempt from
federal income tax or withholding under
United States income tax treaties with
Austria, Belgium, Peoples Republic of
China, Denmark, Egypt, Federal Republic
of Germany, France, Greece, Hungary,
Iceland, India, Indonesia, Ireland, Italy,
Jamaica, Japan, Korea, Luxembourg,
Netherlands, Norway, Pakistan, Philippines, Poland, Romania, Sweden,
Switzerland, Trinidad and Tobago, the
former Union of Soviet Socialist Republics (Armenia, Azerbaijan, Byelarus,
Georgia, Kazakhstan, Kyrgyzstan,
Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan), and the
United Kingdom. Rev. Proc. 87–9,
1987–1 C.B. 368, as modified by Rev.
Proc. 93–22, 1993–1 C.B. 535.
(12) Section 894. - Income Affected by

228

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 principles of Rev. Rul. 89–110, 1989–2 C.B.
275.
(13) 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
Service may rule whether a corporation
representing that it is a resident of a country is a qualified resident thereof for purposes of § 884.
(14) Section 894. - Income Affected by
Treaty. - Whether an entity is treated as
fiscally transparent by a foreign jurisdiction for purposes of §894(c) and the regulations thereunder.
(15) Section 901. - Taxes of Foreign
Countries and of Possessions of the
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).
(16) Sections 927, 936, 954, 993. –
Manufactured Product. - Whether a product is manufactured or produced for purposes of § 927(a), § 936(h)(5), § 954(d),
and § 993(c).
(17) Section 936. - Puerto Rico and
Possession Tax Credit. - What constitutes
a substantial line of business.
(18) Section 956. - Investment of
Earnings in United States Property. Whether a pledge of the stock of a controlled foreign corporation is an indirect
pledge of the assets of that corporation.
See § 1.956–2(c)(2).
(19) Section 985. - Functional Currency.
- Whether a currency is the functional currency of a qualified business unit.
(20) Section 989(a). - Qualified Business Unit. - Whether a unit of the taxpayer’s trade or business is a qualified
business unit.
(21) Section 1058. - Transfers of Securities under Certain Agreements. Whether the amount of any payment described in § 1058(b)(2) or the amount of
any other payment made in connection
with a transfer of securities described in §
1058 is from sources within or without
the United States; the character of such

2000–1 I.R.B.

amounts; and whether the amounts constitute a particular kind of income for purposes of any United States income tax
treaty.
(22) Section 1503(d).-Dual Consolidated Loss.-Whether an event presumptively constitutes a triggering event for purposes of § 1.1503–2(g)(2)(iii)(A)(1)–(7),
apart from possible rebuttal of the presumption under § 1.1503–2(g)(2)(iii)(B).
See section 3.01(4), Rev. Proc. 2000–7.
(23) 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).
(24) Section 7701. - Tax on Nonresident Alien Individuals. - Whether an alien
individual is either a resident or a nonresident of the United States, in situations
where the determination depends on facts
that cannot be confirmed until the close of
the taxable year (including, for example,
the length of the alien’s stay or the nature
of the alien’s activities).
(25) Section 7701. - Definitions. Whether an estate or trust is a foreign estate or trust for federal income tax purposes.
(26)
Section 7701. - Definitions.Whether an intermediate entity is a conduit entity under § 1.881–3(a)(4); whether
a transaction is a financing transaction
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 unrelated
intermediate entity would not have participated in a financing arrangement on substantially the same terms under §
1.881–3(c).

2000–1 I.R.B.

.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 Industrial Classification (SIC) code.
(3) Any transaction or series of transactions that is designed to achieve a different 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) Questions involving the validity of
the federal income tax and other taxes set
forth in the Code, questions on the authority or jurisdiction of the Service to enforce the Code or collect information, or
similar matters.
(5)(a) Situations where a taxpayer or a
related party is domiciled or organized in
a foreign jurisdiction with which the
United States does not have an effective
mechanism for obtaining tax information
with respect to civil tax examinations and
criminal tax investigations, which would
preclude the Service from obtaining information located in such jurisdiction that is
relevant to the analysis or examination of
the tax issues involved in the ruling request.
(b) The provisions of subsection
4.02(5)(a) above shall not apply if the taxpayer or affected related party (i) consents
to the disclosure of all relevant information requested by the Service in processing the ruling request or in the course of
an examination to verify the accuracy of
the representations made and to otherwise
analyze or examine the tax issues involved in the ruling request, and (ii)
waives all claims to protection of bank or

229

commercial secrecy laws in the foreign
jurisdiction with respect to the information requested by the Service. In the
event the taxpayer’s or related party’s
consent to disclose relevant information
or to waive protection of bank or commercial secrecy is determined by the Service to be ineffective or of no force and
effect, then the Service may retroactively
rescind any ruling rendered in reliance on
such consent.
(6)(a) Situations involving the interpretation of foreign law or foreign documents. The interpretation of a foreign law
or foreign document means making a
judgment about the import or effect of the
foreign law or document that goes beyond
its plain meaning.
(b) The Service, at its discretion, may
consider rulings that involve the interpretation of foreign laws or foreign documents. In these cases, the Service may request information in addition to that listed
in sections 8.01(2)(b) and (c) of Revenue
Procedure 2000–1, including a discussion
of the implications of any authority believed to interpret the foreign law or foreign document, such as pending legislation, treaties, court decisions, notices or
administrative decisions.
SECTION 5. EFFECT ON OTHER
REVENUE PROCEDURE
Rev. Proc. 99–7 is superseded.
DRAFTING INFORMATION
This revenue procedure was compiled
by Gerard Traficanti of the Office of Associate Chief Counsel (International).
For further information about this revenue
procedure, please contact Mr. Traficanti at
(202) 622-3619(not a toll-free number).

January 3, 2000

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2000–8
TABLE OF CONTENTS
SECTION 1. PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
SECTION 2. CHANGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.01 In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.02 Tax Exempt and Government Entities Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.03 Fee schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.04 New categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.05 Compliance and correction Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

231
231
231
231
231
231

SECTION 3. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
.01 Legislation authorizing user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
.02 Related revenue procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
SECTION 4. SCOPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.01 Requests to which user fees apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.02 Requests and other actions that do not require the payment of a user fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.03 Exemptions from the user fee requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

231
231
232
232

SECTION 5. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
SECTION 6. FEE SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMPLOYEE PLANS USER FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.01 Letter ruling requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.02 Requests for certain administrative exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.03 Administrative scrutiny determinations with respect to separate lines of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.04 Opinion letters and advisory letters on master and prototype plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.05 Opinion letters on prototype individual retirement accounts and/or annuities, simplified employee pensions,
SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.06 Determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.07 Advisory letters on volume submitter plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

233
233
233
234
234
234

EXEMPT ORGANIZATIONS USER FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.08 Letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.09 Determination letters and requests for group exemption letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.10 Summary of Exempt Organization Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

236
236
237
237

234
235
236

SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS, DETERMINATION LETTERS, ETC. . . . . . 238
.01 Matters handled by EP or EO Technical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
.02 Matters handled by EP or EO Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES, ISSUES,
TRANSACTIONS, OR ENTITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.01 Requests involving several offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.02 Requests involving several fee categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.03 Requests involving several issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.04 Requests involving several unrelated transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.05 Requests for separate letter rulings for several entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

238
238
238
238
238
238

SECTION 9. PAYMENT OF FEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.01 Method of payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.02 Transmittal forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.03 Effect of nonpayment or payment of incorrect amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

239
239
239
239

January 3, 2000

230

2000–1 I.R.B.

SECTION 10. REFUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
.01 General rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
.02 Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
SECTION 12. EFFECT ON OTHER DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
SECTION 13. EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
SECTION 14. PAPERWORK REDUCTION ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
SECTION 1. PURPOSE
This revenue procedure provides guidance 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 under
the jurisdiction of the Commissioner, Tax
Exempt and Government Entities Division; and requests for administrative
scrutiny determinations under Rev. Proc.
93–41, 1993–2 C.B. 536.
SECTION 2. CHANGES
.01 In general. This revenue procedure
is a general update of Rev. Proc. 99–8,
1999–1 I.R.B. 229. A number of fee categories have been adjusted; the level of assets, income or gross receipts qualifying
for a reduced letter ruling fee has been increased, and a fee category has been established concerning the excise tax under
§ 4971(b) of the Internal Revenue Code.
Most other changes to Rev. Proc. 99–8 are
minor revisions, such as updating citations to other revenue procedures, or
eliminating out-of-date fees.
.02 Tax Exempt and Government Entities Division. The procedure has been revised to reflect the reorganization of the
Service and the creation of the new Tax
Exempt and Government Entities Division (TE/GE). Throughout the procedure,
titles have been changed to reflect the realignment of responsibilities formerly
under the Assistant Commissioner(Employee Plans and Exempt Organizations)
to the Commissioner, TE/GE.
.03 Fee schedule. Sections 6.01(11)
and 6.08(6), concerning reduced fees for
letter rulings, have been modified by increasing the qualifying level of assets, income or gross receipts from $150,000 to
$200,000.

2000–1 I.R.B.

References to fees for notification letters for regional prototype plans have
been removed from this procedure because the Service is no longer accepting
applications for such letters. See, Announcement 99–50, 1999–19 I.R.B. 6.
Section 6.06(1) and section 6.06(2)
have been modified to provide separate
fee schedules for Form 5310 applications
for multiple employer plans. Like the fee
schedules for Form 5300 applications for
multiple employer plans, the new schedules are graduated on the basis of the
number of employers in the plan.
.04 New Categories. A new section
6.01(6) has been added to clarify the user
fee for requests for waivers of the 100%
excise tax under § 4971(b).
.05 Compliance and Correction Fees.
References to compliance fees and correction fees under the Voluntary Compliance Resolution (VCR) Program and the
Tax-Sheltered Annuity Voluntary Correction (TVC) Program have been removed
from this procedure because they are not
user fees. For further guidance, please see
Rev. Proc. 98–22, 1998–12 I.R.B. 11,
with respect to compliance fees under
VCR, and Rev. Proc. 99–13, 1999–5
I.R.B. 52, with respect to compliance correction fees under TVC.
SECTION 3. BACKGROUND
.01 Legislation authorizing user fees.
Section 10511 of the Revenue Act of
1987, Pub. L. 100–203, 101 Stat.
1330–382, 1330–446, enacted December
22, 1987, directed the Secretary of the
Treasury or delegate (the “Secretary”) to
establish a program requiring the payment
of user fees for requests to the Service for
letter rulings, opinion letters, determination letters, and similar requests. The fees
charged under the program (1) were to

231

vary according to categories or subcategories established by the Secretary; (2)
were to be determined after taking into
account the average time for, and difficulty of, complying with requests in each
category and subcategory; and (3) were to
be payable in advance. The Secretary was
to provide for exemptions and reduced
fees under the program as the Secretary
determined to be appropriate, but the average fee applicable to each category
must not be less than the amount specified
in the statute. The fees were to apply to
requests made on or after February 1,
1988, and before September 30, 1990.
Section 11319 of the Omnibus Budget
Reconciliation Act of 1990, Pub. L.
101–508, 1991–2 C.B. 481, 511, extended
the time during which the user fees would
be applicable through September 30,
1995. Section 743 of the Uruguay Round
Agreements Act, Pub. L. 103–465,
1995–1 C.B. 230, 239, extended the time
during which the user fees will be applicable through September 30, 2000. Section 2 of Pub. L. 104–117, Tax Relief to
Operation Joint Endeavor Participants
Act, 1996–3 C.B. 1, extended the time
during which the user fees will be applicable through September 30, 2003.
.02 Related revenue procedures. The
various revenue procedures that require
payment of a user fee, or an administrative scrutiny determination user fee are
described in the appendix to this revenue
procedure.
SECTION 4. SCOPE
.01 Requests to which user fees apply.
In general, user fees apply to all requests
for letter rulings, opinion letters, determination letters, and advisory letters submitted by or on behalf of taxpayers, sponsoring organizations or other entities as

January 3, 2000

described in this revenue procedure. Further, an administrative scrutiny determination user fees described in Rev. Proc.
93–41, are collected through the user fee
program described in this revenue procedure. Requests to which a user fee or an
administrative scrutiny determination
user fee is applicable must be accompanied by the appropriate fee as determined
from the fee schedule set forth in section
6 of this revenue procedure. The fee may
be refunded in limited circumstances as
set forth in section 10.
.02 Requests and other actions that do
not require the payment of a user fee. Actions which do not require the payment of
a user fee include the following:
(1) Requests for information letters
as defined in Rev. Proc. 2000–4, page115,
this Bulletin.
(2) Elections pertaining to automatic
extensions of time under § 301.9100–1 of
the Procedure and Administration regulations.
(3) Use of forms which are not to be
filed with the Service. For example, no
user fee is required in connection with the
use of Form 5305, Individual Retirement

Trust Account, or Form 5305–A, Individual Retirement Custodial Account, in
order to adopt an individual retirement account under § 408(a). This form should
not be filed with the Service.
(4) In general, plan amendments
whereby sponsors amend their plans by
adopting, word-for-word, the model language contained in a revenue procedure
which states that the amendment should
not be submitted to the Service and that
the Service will not issue new opinion,
advisory, ruling or determination letters
for plans that are amended solely to add
the model language.
(5) Change in accounting period or
accounting method permitted by a published revenue procedure that permits an
automatic change without prior approval
of the Commissioner.
.03 Exemptions from the user fee requirements. The following exemptions
apply to the user fee requirements. These
are the only exemptions that apply:
(1) Departments, agencies, or instrumentalities of the United States that certify that they are seeking a letter ruling,
determination letter, opinion letter or sim-

ilar letter on behalf of a program or activity funded by federal appropriations. The
fact that a user fee is not charged has no
bearing on whether an applicant is treated
as an agency or instrumentality of the
United States for purposes of any provision of the Code.
(2) Requests as to whether a worker
is an employee for federal employment
taxes and federal income tax withholding
purposes (chapters 21, 22, 23, and 24 of
subtitle C of the Code) submitted on Form
SS-8, Information for Use in Determining
Whether a Worker is an Employee for
Federal Employment Taxes and Income
Tax Withholding, or its equivalent. Such
a request may be submitted in connection
with an application for a determination on
the qualification of a plan when it is necessary to determine whether an employeremployee relationship exists. See section
6.13 of Rev. Proc. 2000–6, page 187, this
Bulletin. In that case, although no user
fee applies to the request submitted on
Form SS-8, the applicable user fee must
be paid in connection with the application
for determination on the plan’s qualification.

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 determination

Rev. Proc. 93–41

Adoption agreement

Rev. Procs. 89–9, 89–13

Advisory letter

Rev. Procs. 89–9, 2000–6

Basic plan document

Rev. Procs. 89–9, 89–13

Determination letter

Rev. Procs. 90–27, 2000–4

Dual-purpose IRA

Rev. Proc. 98–59

Group exemption letter

Rev. Proc. 80–27

Information letter

Rev. Proc. 2000–4

Letter ruling

Rev. Proc. 2000–4

Mass submitter

Rev. Procs. 89–9, 89–13, 87–50

Mass submitter plan

Rev. Proc. 89–9

Master plan

Rev. Proc. 89–9

Minor modification

Rev. Procs. 87–50, 89–9

January 3, 2000

232

2000–1 I.R.B.

Opinion letter

Rev. Procs. 89–9, 2000–4

Prototype plan

Rev. Proc. 89–9

Roth IRA

Rev. Proc. 98–59

SIMPLE IRA

Rev. Proc. 97–29

SIMPLE IRA Plan

Rev. Proc. 97–29

Plan Sponsor

Rev. Proc. 89–13

Sponsoring organization

Rev. Procs. 87–50, 89–9, 90–21

Volume submitter plan

Rev. Proc. 2000–6

Volume submitter specimen plan

Rev. Proc. 2000–6

Word-for-word identical adoption

Rev. Procs. 89–9, 89–13, 87–50

SECTION 6. FEE SCHEDULE
The amount of the user fee, compliance fee or correction fee payable with respect to each category or subcategory of submission
is as set forth in the following schedule.
CATEGORY

FEE

EMPLOYEE PLANS USER FEES
.01 Letter ruling requests.
(1) Computation of exclusion for annuitant under § 72
(2) Change in plan year (Form 5308)

$85
$130

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.
(3) Change in funding method
(4) Approval to become a nonbank trustee (see § 1.408–2(e) of the Income Tax Regulations)
(5) Waiver of minimum funding standard, under § 412(d):
(a) Waiver of $1,000,000 or more
(b) Waiver of less than $1,000,000
(6) Waiver of the excise tax, under § 4971(f), on failure to pay a liquidity shortfall:
(a) Waiver of $1,000,000 or more
(b) Waiver of less than $1,000,000
(7) Letter ruling under Rev. Proc. 90–49, 1990–2 C.B. 620
(8) Letter ruling involving the determination of the account limit under § 419A(c)
(9) Individually designed simplified employee pension (SEP)
(10) All other letter rulings

$500
$3,250
$4,800
$2,050
$4,800
$2,050
$300
$2,275
$2,275
$2,275

Reduced fees, or augmented fee, applicable to all other letter rulings:
(a) Letter ruling requests by or on behalf of eligible retirement plans (within the meaning of § 402(c)(8)(B))
with assets of less than $200,000
(b) Letter ruling requests from U.S. citizens and resident alien individuals, domestic trusts, and domestic estates
whose “total income” as reported on their federal income tax return (as amended) filed for a full (12 months)
taxable year ending before the date the request is filed, plus any interest income not subject to tax under
§ 103 (interest on state and local bonds) for that period, is less than $200,000

$600

$600

Note: The reduced fee applies to a married individual if the combined gross income of the applicant and the applicant’s spouse is
less than $200,000. The gross incomes of the applicant and the applicant’s spouse are not combined, however, if the applicant is
legally separated from his or her spouse and the spouses do not file a joint income tax return with each other. In the case of a let-

2000–1 I.R.B.

233

January 3, 2000

ter ruling request from a domestic estate or trust that, at the time the request is filed, has not filed an income tax return for a full
taxable year, the reduced fee will be applicable if the decedent’s or (in the case of an individual grantor) the grantor’s total income
as reported on the last return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to be made to total income described in this subparagraph, is less than $200,000.
(c) Letter ruling requests from organizations exempt from income tax under “Subchapter F-Exempt
Organizations” with gross receipts of less than $200,000

$600

Note: An organization exempt from income tax under Subchapter F must certify in its request for a letter ruling that its gross receipts for the last full taxable year before the request was filed were less than $200,000.
(d) In 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, each additional
letter ruling request after the $2,275 fee or the $600 reduced fee, as applicable, has been paid for the
first letter ruling request

$200

(e) In situations in which a taxpayer requests a single letter ruling involving substantially identical
issues of fact and law with respect to multiple members of a common entity, for each additional entity after
the $2,275 fee or $600 reduced fee, as applicable, has been paid for the first entity

$200

.02 Requests for certain administrative exemptions.
Requests for administrative exemptions for participant-directed transactions that are in compliance with the
regulations under § 404(c) of the Employee Retirement Income Security Act of 1974 (ERISA) but may result
in prohibited transactions under § 4975

$2,275

Note: The provisions of Rev. Proc. 75–26, 1975– C.B. 722, are applicable to such requests.
.03 Administrative scrutiny determinations with respect to separate lines of business.
(1) For the first separate line of business for which a determination is requested
(2) For each additional separate line of business for which a determination is requested

$4,350
$1,400

.04 Opinion letters and advisory letters on master and prototype plans.
(1) Mass submitter M & P plan, per basic plan document, new or amended, with one adoption agreement
(2) Mass submitter M & P plan, per each additional adoption agreement
(3) Sponsoring organization’s word-for-word identical adoption of M & P mass submitter’s
basic plan document (or an amendment thereof), per adoption agreement

$3,250
$425
$110

Note 1: Mass submitters that are sponsoring organizations in their own right are liable for this fee.
Note 2: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applications on behalf of word-forword 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.
(4) Sponsoring organization’s minor modification of M & P mass submitter’s plan document, per adoption
agreement
(5) Nonmass submission (new or amended) by M & P sponsoring organization, per adoption agreement
(6) M & P mass submitter’s request for an advisory letter with respect to the addition of optional provisions
following issuance of a favorable opinion letter (see section 18.031(c) of Rev. Proc. 89–9), per basic plan document
(regardless of the number of adoption agreements)
(7) M & P mass submitter’s addition of new adoption agreements after the basic plan document and associated
adoption agreements have been approved, per adoption agreement
(8) 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

January 3, 2000

234

$250
$1,950

$525
$425
$250

2000–1 I.R.B.

.05 Opinion letters on prototype individual retirement accounts and/or annuities, simplified employee
pensions, SIMPLE IRAs, SIMPLE IRA Plans, and Roth IRAs.
(1) Mass submission of a prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per plan
document, new or amended
(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

$1,150
$110

Note: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applications on behalf of word-forword adopters of prototype 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 minor modification of mass submitter’s prototype IRA, SEP, SIMPLE
IRA, SIMPLE IRA Plan, or Roth IRA, per plan document
(4) Sponsoring organization’s nonmass submission of prototype IRA, SEP, SIMPLE IRA, SIMPLE
IRA Plan, or Roth IRA, per plan document
(5) Opinion letters on dual-purpose (combined traditional and Roth) IRAs:
(a) Mass submission of a prototype dual-purpose IRA, per plan document, new or amended
(b) Sponsoring organization’s word-for-word identical adoption of mass submitter’s prototype
dual-purpose IRA, per plan document or an amendment thereof

$300
$425
$2,275
$110

Note: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applications on behalf of word-forword adopters of 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.
(c) Sponsoring organization’s minor modification of mass submitter’s prototype dual-purpose
IRA, per plan document
(d) Sponsoring organization’s nonmass submission of prototype dual-purpose IRA, per plan document

$600
$875

.06 Determination letters
(1) If the plan is intended to satisfy a design-based or nondesign-based safe harbor, or if the applicant is not electing to receive
a determination with respect to any of the general tests, and the applicant is not electing to receive a determination with respect to the
average benefit test:
(a) Form 5300
$700
(b) Form 5303
$700
(c) Form 5307
$125
(d) Form 5310
$225
(e) Form 6406
$125
(f) Multiple employer plan (Form 5300):
(i) 2 to 10 employers
$700
(ii) 11 to 99 employers
$1,400
(iii) 100 to 499 employers
$2,800
(iv) Over 499 employers
$5,600
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) above. If only one employer adopts the plan in any subsequent year, the fee would be $700.
(g) Multiple employer plans (Form 5310):
(i) 2 to 10 employers
(ii) 11 to 99 employers
(iii) 100 to 499 employers
(iv) Over 499 employers

$225
$450
$900
$1,800

(2) If the applicant is electing to receive a determination with respect to the average benefit test and/or any of the general
tests:
(a) Form 5300 or Form 5303
(b) Form 5307
(c) Form 5310

2000–1 I.R.B.

$1,250
$1,000
$375

235

January 3, 2000

(d) Multiple employer plans (Form 5300)
(i) 2 to 10 employers
(ii) 11 to 99 employers
(iii) 100 to 499 employers
(iv) Over 499 employers

$1,250
$2,000
$3,500
$6,500

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) above. If only one employer adopts the plan in any subsequent year, the fee would be $1,250.
(e) Multiple employer plans (Form 5310):
(i) 2 to 10 employers
(ii) 11 to 99 employers
(iii) 100 to 499 employers
(iv) Over 499 employers

$375
$600
$1,000
$2,000

(3) Group trusts contemplated by Rev. Rul. 81–100, 1981–1 C.B. 326

$750

.07 Advisory letters on volume submitter plans.
Volume submitter specimen plans

$1,500

EXEMPT ORGANIZATIONS USER FEES
.08 Letter rulings.
(1) Applications with respect to change in accounting period (Form 1128)

$140

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.
(2) Applications with respect to change in accounting method (Form 3115)

$140

Note: No user fee is charged if the method described in Rev. Proc. 97–37, 1997–2 C.B. 455, is used. Taxpayers complying timely with Rev. Proc. 97–37 will be deemed to have obtained the consent of the Commissioner of Internal Revenue to change their
method of accounting.
(3) Advance approval of scholarship grant-making procedures of a private foundation that has
an agreement for the administration of the scholarship program with the National Merit Scholarship
Corp., or similar organization administering a scholarship program shown to meet Service requirements
(4) Request for a letter ruling as to whether an organization exempt from federal income tax is
required to file an annual return under § 6033

$220
$220

Note 1: See Rev. Proc. 95–48, 1995–2 C.B. 418, which specifies that governmental units and affiliates of governmental units that
are exempt from federal income tax under § 501(a) are not required to file annual information returns on Form 990, Return of
Organization Exempt from Income Tax.
Note 2: There is no additional charge for a determination of the § 6033 filing requirement from an organization seeking recognition of exempt status under § 501 if the organization submits the information required by line 9 of Part I of Form 1023,
Application for Recognition of Exemption under Section 501(c)(3) of the Code, or submits a separate written request with its
application for recognition of exemption. Only the user fee for the initial application for recognition of exemption applies.
(5) Request for approval of a qualified subsidiary related to a § 501(c)(25) organization.
(6) All other letter rulings
Reduced fees applicable to all other letter rulings:
(a) Organizations with gross receipts less than $200,000

$550
$2,275

$600

Note: An exempt organization seeking a reduced fee must certify in the letter ruling request that its gross receipts for the last taxable year before the request is filed were less than $200,000.

January 3, 2000

236

2000–1 I.R.B.

(b) Letter ruling requests from U.S. citizens and resident alien individuals, domestic trusts,
and domestic estates whose “total income” as reported on their federal income tax return (as amended)
filed for a full (12 months) taxable year ending before the date the request is filed, plus any interest
income not subject to tax under § 103 (interest on state and local bonds) for that period, is less than $200,000

$600

Note: The reduced fee applies to a married individual if the combined gross income of the applicant and the applicant’s spouse is
less than $200,000. The gross incomes of the applicant and the applicant’s spouse are not combined, however, if the applicant is
legally separated from his or her spouse and the spouses do not file a joint income tax return with each other. In the case of a letter ruling request from a domestic estate or trust that, at the time the request is filed, has not filed an income tax return for a full
taxable year, the reduced fee will be applicable if the decedent’s or (in the case of an individual grantor) the grantor’s total income
as reported on the last return filed for a full taxable year ending before the date of death or the date of the transfer, taking into
account any additions required to be made to total income described in this subparagraph, is less than $200,000.
(c) Letter ruling requests in which a taxpayer requests substantially identical letter rulings
for multiple entities with a common member or activity, or multiple members of a common entity,
each additional letter ruling request after the $2,275 fee or the $600 reduced fee, as applicable, has
been paid for the first letter ruling request

$200

.09 Determination letters and requests for group exemption letters.
(1) Initial application 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 no
more than $10,000 during the preceding four years, or new organizations that anticipate gross receipts averaging
not more than $10,000 during their first four years

$150

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) Initial application for exempt status from organizations otherwise described in paragraph (1) of this
section 6.13 whose actual or anticipated gross receipts exceed the $10,000 average annually

$500

Note: If an organization that is already recognized as exempt under § 501(c) seeks reclassification under another 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) because their application was filed late and they do not qualify for
relief under § 301.9100–1.
(3) Group exemption letters

$500

.10 Summary 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 fees may be applicable in certain instances.
ISSUE

LOCATION

FEE

Accounting period and method changes
Advance ruling period inquiries
Amendments, reorganizations, name changes
Application for recognition of exemption
Confirmation of exemption
Qualified subsidiaries of section 501(c)(25) organizations
Regulation 301.9100 relief in connection with applications for recognition of
exemption
Section 507 terminations
(a) Notice under section 507(b)(1) or (2)
(b) Advance ruling under 507(b)(1) or (2)
Section 514(b)(3) Neighborhood Land Use Rule
Section 4940(d) exempt operating foundation status
Section 4942(g)(2) set-asides notification

Technical
Determinations
Determinations
Determinations
Determinations
Technical

$140
none
none
$500
none
$550

Determinations

none

Determinations
Technical
Technical
Determinations
Determinations

none
$2275
none
none
none

2000–1 I.R.B.

237

January 3, 2000

Section 4943(c)(7) extensions of disposal period
Section 4945 advance approval of organization’s grant making procedures
Section 4945(f) advance approval of voter registration activities
Section 6033 annual information return filing requirements
(a) requested with original application
(b) requested after recognition of exemption
Unusual grants to certain organizations under sections 170(b)(1)(A)(vi) and 509(a)(2)
SECTION 7. MAILING ADDRESS
FOR REQUESTING LETTER
RULINGS, DETERMINATION
LETTERS, ETC.
.01 Matters handled by EP or EO
Technical. Requests should be mailed to
the appropriate address set forth in this
section 7.01.
(1) Employee plans letter rulings
under Rev. Proc. 78–37, 79–61, 79–62,
87–50, 90–49, 94–41, 94–42 or 2000–4:
Internal Revenue Service
Commissioner (TE/GE)
Attention: Employee Plans
P.O. Box 14073, Ben Franklin Station
Washington, D.C. 20044
(2) Employee plans opinion letters or
advisory letters under Rev. Proc. 89–9:
Internal Revenue Service
Commissioner (TE/GE)
Attention: Employee Plans
P.O. Box 14073
Ben Franklin Station
Washington, D.C. 20044
(3) Employee plans administrative
scrutiny determinations under Rev. Proc.
93–41:
Internal Revenue Service
Attention: Administrative Scrutiny
P.O. Box 14073
Ben Franklin Station
Washington, D.C. 20044
(4) Exempt organizations letter rulings:
Internal Revenue Service
Commissioner (TE/GE)
Attention: Exempt Organizations
P.O. Box 120
Ben Franklin Station
Washington, D.C. 20044
.02 Matters handled by EP or EO Determinations Office. The following types

January 3, 2000

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: requests for determination letters and
volume submitter advisory letters on the
qualified status of employee plans under
§§ 401, 403(a), and 409, and the exempt
status of any related trust under § 501; applications for recognition of tax exemption on Form 1023, Form 1024 and Form
1028; and other applications for recognition of qualification or exemption. The
address is:
Internal Revenue Service
P.O. Box 192
Covington, KY 41012-0192
Applications shipped by Express Mail
or a delivery service should be sent to:
Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011
SECTION 8. REQUESTS
INVOLVING MULTIPLE OFFICES,
FEE CATEGORIES, ISSUES,
TRANSACTIONS, OR ENTITIES
.01 Requests involving several offices. If a request dealing with only one
transaction involves more than one of
the offices within the National Office or
the Headquarters Office (for example,
one issue is under the jurisdiction of the
Associate Chief Counsel (Domestic) and
another issue is under the jurisdiction of
the Commissioner, Tax Exempt and
Government Entities Division), only one
fee applies, namely the highest fee that
otherwise would apply to each of the offices involved. See Rev. Proc. 2000–1,
this Bulletin, for the user fees applicable
to issues under the jurisdiction of the
Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee
Benefits and Exempt Organizations), the
Associate Chief Counsel (Enforcement
Litigation), or the Associate Chief

238

Technical
Determinations
Determinations

$2275
none
none

Determinations
Technical
Determinations

none
$220
none

Counsel (International).
.02 Requests involving several fee categories. If a request dealing with only
one transaction involves more than one
fee category, only one fee applies, namely
the highest fee that otherwise would apply
to each of the categories involved.
.03 Requests involving several issues.
If a request dealing with only one transaction involves several issues, or a request for a change in accounting method
dealing with only one item or submethod of accounting involves several
issues, or a request for a change in accounting period dealing with only one
item involves several issues, the request
is treated as one request. Therefore,
only one fee applies, 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.
.04 Requests involving several unrelated transactions. If a request involves
several unrelated transactions, or a request for a change in accounting method
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 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.
.05 Requests for separate letter rulings
for several entities. Each entity involved
in a transaction (for example, an exempt
hospital 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. In certain situations,
however, a reduced fee may be charged.
See sections 6.01(11) and 6.08(6) of this
revenue procedure.

2000–1 I.R.B.

SECTION 9. PAYMENT OF FEE
.01 Method of payment. Each request
to the Service for a letter ruling, determination 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.
.02 Transmittal forms. Form 8717, User
Fee for Employee Plan Determination Letter Request, and Form 8718, User Fee for
Exempt Organization Determination Letter
Request, are intended to be used as attachments to determination letter, notification
letter and advisory letter applications.
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, opinion letters, or administrative
scrutiny determinations.
.03 Effect of nonpayment or payment
of incorrect amount. It will be the general
practice of the Service that:
(1) The respective offices within the
Service that are responsible for issuing letter 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 accompanied 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 returned. 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 returning the submission. Examples
of this are: (a) where an application for a
determination letter is submitted prior to
the expiration of the remedial amendment
period under § 401(b) and is returned be-

2000–1 I.R.B.

cause no user fee was attached, the submission will be timely if it is resubmitted
by the expiration of the remedial amendment period or, if later, within 30 days
after the application was returned; and (b)
where an application for exemption under
§ 501(c)(3) is submitted before expiration
of the period provided by § 1.508–1(a)(2)
and is returned because no user fee was
attached, the submission will be timely if
it is resubmitted before expiration of the
period provided 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 submission will be accepted and the amount of
the excess payment will be returned to the
requester.
SECTION 10. REFUNDS
.01 General rule. In general, the fee
will not be refunded unless the Service
declines to rule on all issues for which a
ruling is requested. 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 taxpayer
must pay another user fee before the case
can be reopened. See section 11.04(5) of
Rev. Proc. 2000–4, page 115, this Bulletin.
.02 Examples.
(1) The following are examples of
situations in which the fee will not be
refunded:
(a) The request for a letter ruling,
determination letter, etc., is withdrawn
at any time subsequent to its receipt by
the Service, unless the only reason for
withdrawal is that the Service has advised the 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 example, no fee
will be refunded where the taxpayer has
been advised that a proposed adverse
ruling is contemplated and subsequently
withdraws its submission.
(b) The request is procedurally deficient, although accompanied by the
proper fee and is not timely perfected by
the requester. When there is a failure to
timely perfect the request, the case will be
considered closed and the failure to per-

239

fect will be treated as a withdrawal for
purposes of this revenue procedure.
(c) 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.
(d) 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.
(e) 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 Service
has declined to rule) and requests reconsideration. The Service, 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.
(f) The situation is the same as described in subparagraph (e) of this section
10.02(1) except that the letter ruling covered several unrelated transactions. The
Service, upon reconsideration, does not
agree with the taxpayer that the letter ruling is erroneous or is not responsive for
all of the transactions, but does agree that
it is erroneous as to one transaction. The
fee accompanying the request for reconsideration will not be refunded except to
the extent applicable to the transaction for
which the Service agrees the letter ruling
was in error.
(g) The request is for a supplemental letter ruling, determination letter,
etc., concerning a change in facts
(whether significant or not) relating to the
transaction ruled on.
(h) The request is for reconsideration of an adverse or partially adverse letter ruling or a final adverse determination
letter, and the taxpayer submits arguments
and authorities not submitted before the
original letter ruling or determination letter was issued.
(2) The following are examples of
situations in which the fee will be refunded:
(a) In a situation to which section
10.02(1)(h) 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

January 3, 2000

the Service declined to rule) and requests reconsideration. The Service
agrees, upon reconsideration, 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)(h) of this revenue procedure
does not apply, the requester requests a
supplemental letter ruling, determination letter, etc., to correct a mistake that
the Service agrees it made in the original
letter ruling, determination letter, etc.,
such as a mistake in the statement of
facts or in the citation of a Code section.
Once the Service agrees that it made a
mistake, the fee accompanying the request for the supplemental letter ruling,

determination letter, etc., will be refunded.
(c) The taxpayer requests and is
granted relief under § 7805(b) in connection with the revocation in whole or
in part, of a previously issued letter ruling, determination letter, etc. The fee
accompanying the request for relief will
be refunded.
(d) In a situation to which section
10.02(1)(d) of this revenue procedure
applied, the taxpayer requests reconsideration of the Service’s decision not to
rule on an issue. Once the Service
agrees to rule on the issue, the fee accompanying the request for reconsideration will be refunded.
SECTION 11. REQUEST FOR
RECONSIDERATION OF USER FEE

If the matter involves primarily:

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 reconsideration 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. Both the incoming envelope and the letter requesting such reconsideration should be prominently
marked “USER FEE RECONSIDERATION REQUEST.” No user fee is required for these requests. The request
should be marked for the attention of:

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 requests

Exempt Organizations Technical

Employee plans and/or exempt organizations
determination letter requests

Chief, Technical/Review Staff
EP or EO Determinations

SECTION 12. EFFECT ON OTHER
DOCUMENTS
.01 Rev. Proc. 99–8, 1999–1 I.R.B.
229, is superseded.
SECTION 13. EFFECTIVE DATE
This revenue procedure is effective
January 10, 2000.
SECTION 14. 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 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
control number.
The collections of information in this
revenue procedure are in sections
6.01(10)(c), 6.08(6)(a) and 11. This in-

January 3, 2000

formation 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 letter ruling is
entitled to pay the reduced fee; to identify the user fee category and corresponding 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 information 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 reconsideration 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 individuals,
business or other for-profit institutions,
nonprofit institutions, and small businesses or organizations.
The estimated total annual reporting
and/or recordkeeping burden is 300 hours.

240

The estimated annual burden per respondent/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 (requests for reconsideration of
fee).
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 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Luis O. Ortiz of Employee
Plans, Tax Exempt and Government
Entities Division. For further information
regarding this revenue procedure, contact
Mr. Ortiz at (202) 622-6214 (not a toll-free
number).

2000–1 I.R.B.

APPENDIX
Following is a list of revenue procedures
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. 2000–4, this Bulletin, provides procedures for issuing letter rulings,
information letters, etc., on matters relating to matters under the jurisdiction of the
Commissioner, Tax Exempt and Government 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 processing
of applications for exemption under §
4975(c)(2) of the Code.
Rev. Proc. 87–50, 1987–2 C.B. 647, as
modified by Rev. Proc. 91–44 and Rev.
Proc. 92–38, sets forth the procedures of
the Service relating to the issuance of rulings and opinion letters with respect to the
establishment of individual retirement accounts 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 prototype simplified employee pension (SEP)
agreements under §§ 408(k) and 415.
Rev. Proc. 89–9, 1989–1 C.B. 780, as
modified by Rev. Proc. 90–21; Rev. Proc.
92–41, 1992–1 C.B. 870; Rev. Proc.
93–9, 1993–1 C.B. 474; Rev. Proc.
93–12; and Rev. Proc. 94–13; and as supplemented by Rev. Proc. 93–10, 1993–1
C.B. 476, sets forth the procedures of the
Service pertaining to the issuance of opinion letters relating to master or prototype
pension, profit-sharing and annuity plans
involving §§ 401 and 403(a), and the status for exemption of related trusts or custodial accounts under § 501(a).
Rev. Proc. 90–21, 1990–1 C.B. 499,
modified Rev. Procs. 89–9 and 89–13 regarding certain requirements for approval
by the Service of master and prototype (M
& P) pension, profit-sharing and annuity
plans and regional prototype plans.
Rev. Proc. 92–24, 1992–1 C.B. 739,
provides procedures for requesting determination letters on the effect on a plan’s
qualified status under § 401(a) of the
Code of plan language that permits, pur-

2000–1 I.R.B.

suant to § 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). 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 relating to the issuance of an administrative
scrutiny determination as to whether a
separate line of business satisfies the requirement 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
letters; permissive amendments to sponsors of nonSIMPLE IRAs; the opening of
a prototype 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, 1998–50 I.R.B. 8,
provides guidance on obtaining 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. 2000–6, this Bulletin, provides procedures for issuing determination letters on the qualified status of employee plans under §§ 401(a), 403(a),
409, and 4975(e)(7).
C. Employee Plans Actuarial Matters
Rev. Proc. 78–37, 1978–2 C.B. 540,
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 provided by § 412(c)(5) of the Code and §
302(c)(5) of ERISA.
Rev. Proc. 79–61, 1979–2 C.B. 575, outlines the procedure by which a plan administrator or plan sponsor may request and
obtain approval for an extension of an
amortization period in accordance with §
412(e) of the Code and § 304(a) of ERISA.

241

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 only de minimis increases in plan liabilities in accordance 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
effective date to contributions made for
plan years beginning after December 31,
1989, to change the deadline for requesting rulings under the revenue procedure,
to revise the information requirements for
a ruling request made under the revenue
procedure, to furnish a worksheet for actuarial computations, and to provide a
special rule under which certain de minimis nondeductible employer contributions to a qualified defined benefit plan
may be returned to the taxpayer without a
formal ruling or disallowance from the
Service.
Rev. Proc. 94–41, 1994–1 C.B. 711,
sets forth procedures for requesting
waivers of the minimum funding standard
described in § 412(d) and the issuance of
such waivers by the Commissioner, Tax
Exempt and Government Entities Division.
Rev. Proc. 94–42, 1994–1 C.B. 717,
supersedes Rev. Proc. 79–18, 1979–1
C.B. 525, and Rev. Rul. 79–215, 1979–2
C.B. 190, and sets forth a procedure for
obtaining approval of an amendment to
a qualified plan that, under § 412(c)(8),
reduces the accrued benefits of plan participants.
D. Procedures Applicable to Exempt Organizations Matters Only
Rev. Proc. 80–27, 1980–1 C.B. 677,
provides procedures under which recognition of exemption from federal 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 application
for recognition of exemption.
Rev. Proc. 90–27, 1990–1 C.B. 514,
sets forth revised procedures with regard
to applications for recognition of exemption from federal income tax under §§ 501
and 521.

January 3, 2000

Part IV. Items of General Interest
Cumulative List of
Announcements Relating to
Section 7428(c) Validation of
Certain Contributions Made
During Pendency of Declaratory
Judgment Proceedings from
January 1, 1999 through
December 31, 1999
The following is a cumulative listing of
names of organizations that are presently
challenging, under section 7428 of the Internal Revenue Code, the revocation of
their status as organizations entitled to receive deductible contributions in declaratory judgment suits in the Tax Court, the
United States District Court for the District of Columbia, or the United States
Court of Federal Claims. The purpose of

this announcement is to inform potential
donors to these organizations of the protection under 7428(c) for certain contributions made during the litigation period.
Protection under section 7428(c) of the
Code begins on the date that the notice of
revocation is published in the Internal
Revenue Bulletin and ends on the date on
which a court first determines that an organization is not described in section
170(c)(2), as more particularly set forth in
section 7428(c)(1). In the case of individual contributors, the maximum amount of
contributions protected during this period
is limited to $1,000.00, with a husband
and wife being treated as one contributor.
This protection is not extended to any individual who was responsible, in whole or
in part, for the acts or omissions of the or-

Anclote Psychiatric Center, Inc.
(January 27, 1992)
Branch Ministries, Inc. d/b/a The Church at Pierce Creek
(April 10, 1995)
Fountain of Life, Inc.
(March 2, 1998)
Great Plains Health Alliance, Inc.
(July 6, 1998)
Larry Lea Ministries, Inc.
(July 28, 1998)
Music Square Church
(August 5, 1996)
Oriana House, Inc.
(October 14, 1997)
Saint Matthew Publishing, Inc.
(July 21, 1997)
Don Stewart Association
(July 21, 1997)
United Cancer Council, Inc.
(March 25, 1991)

ganization that were the basis for the revocation. This protection also applies
(but without limitation as to amount) to
organizations described in section
170(c)(2) which are exempt from tax
under section 501(a). If the organization
ultimately prevails in its declaratory judgment suit, deductibility of contributions
would be subject to the normal limitations
set forth under section 170.
I. The organizations listed below continue to be involved in pending declaratory judgment suits under section
7428 of the Code, challenging revocation of their status as eligible donees
under section 170(c)(2). Protection
under section 7428(c) begins on the
date indicated.
Tarpon Springs, FL
Vestal, NY
Greensboro, NC
Phillipsburg, KS
Sherman, TX
Van Buren, AR
Akron, OH
Los Angeles, CA
Phoenix, AZ
Indianapolis, IN

II. The organizations listed below have timely filed declaratory judgment suits under section 7428 of the Code during 1999.
Protection under section 7428(c) begins on the date indicated.
American Heart Foundation
(June 14, 1999)
The Freedom Alliance
(April 5, 1999)
IHC Health Plans, Inc.
(October 12, 1999)
Lenox Institute of Water Technology, Inc.
(March 15, 1999)
Abraham Lincoln Opportunity Foundation
(April 5, 1999)
Sta-Home Home Health Agency of Forest, Inc.
(October 12, 1999)

January 3, 2000

Des Moines, IA
Dulles, VA
Salt Lake City, UT
Lenox, MA
Denver, CO
Jackson, MS

242

2000–1 I.R.B.

Sta-Home Home Health Agency of Grenada, Inc.
(October 12, 1999)
Sta-Home Home Health Agency of Jackson, Inc.
(October 12, 1999)

Jackson, MS
Jackson, MS

III. The organizations listed below are no longer described in section 170(c)(2) and are not recognized as exempt under section
501(c)(3) of the Code.
Eastern Orthodox Christian Church in America, Inc.

New Albany, OH

Saint Ignatius Orthodox Church

New Albany, OH

Saint Nicholas Orthodox Church

New Albany, OH

IV. This Announcement serves notice to potential donors that by agreement of the parties and by Stipulation of Dismissal entered
by the United States Court of Federal Claims on March 26, 1999, the organization listed below is an organization exempt from
taxes under section 501(a) as an organization described in section 501(c)(3) and section 170(c)(2) of the Internal Revenue Code
from July 1, 1993. The organization is not recognized as an organization exempt from tax for the period from June 30, 1987
through June 30, 1993.
Student Ministries, Inc.

2000–1 I.R.B.

Milwaukee, OR

243

January 3, 2000

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
effect:
Amplified describes a situation where
no change is being made in a prior published position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being 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.
Distinguished describes a situation
where a ruling mentions a previously
published ruling and points out an essential difference between them.
Modified is 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 ap-

plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. A ruling
may also be obsoleted because the substance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published ruling is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a period of time in separate rulings. If the

new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes 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 published ruling is first
modified and then, as modified, is superseded.
Supplemented is 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 ruling has been supplemented
several times, a new ruling may be published that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is 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

E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.

PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedral Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

The following abbreviations in current use and formerly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.

January 3, 2000

i

2000–1 I.R.B.

Numerical Finding List1
Bulletins 1999–27 through 1999–52
Announcements:
99–47, 1999–28 I.R.B. 29
99–64, 1999–27 I.R.B. 7
99–65, 1999–27 I.R.B. 9
99–66, 1999–27 I.R.B. 9
99–67, 1999–28 I.R.B. 31
99–68, 1999–28 I.R.B. 31
99–69, 1999–28 I.R.B. 33
99–70, 1999–29 I.R.B. 118
99–71, 1999–31 I.R.B. 223
99–72, 1999–30 I.R.B. 132
99–73, 1999–30 I.R.B. 133
99–74, 1999–30 I.R.B. 133
99–75, 1999–30 I.R.B. 134
99–76, 1999–31 I.R.B. 223
99–77, 1999–32 I.R.B. 243
99–78, 1999–31 I.R.B. 229
99–79, 1999–31 I.R.B. 229
99–80, 1999–34 I.R.B. 310
99–81, 1999–32 I.R.B. 244
99–82, 1999–32 I.R.B. 244
99–83, 1999–32 I.R.B. 245
99–84, 1999–33 I.R.B. 248
99–85, 1999–33 I.R.B. 248
99–86, 1999–35 I.R.B. 332
99–87, 1999–35 I.R.B. 333
99–88, 1999–36 I.R.B. 407
99–89, 1999–36 I.R.B. 408
99–90, 1999–36 I.R.B. 409
99–91, 1999–37 I.R.B. 421
99–92, 1999–38 I.R.B. 433
99–93, 1999–36 I.R.B. 409
99–94, 1999–39 I.R.B. 437
99–95, 1999–42 I.R.B. 520
99–96, 1999–41 I.R.B. 504
99–97, 1999–41 I.R.B. 505
99–98, 1999–42 I.R.B. 520
99–99, 1999–42 I.R.B. 522
99–100, 1999–42 I.R.B. 522
99–101, 1999–43 I.R.B. 544
99–102, 1999–43 I.R.B. 545
99–103, 1999–43 I.R.B. 546
99–104, 1999–44 I.R.B. 555
99–105, 1999–44 I.R.B. 555
99–106, 1999–45 I.R.B. 561
99–107, 1999–45 I.R.B. 561
99–108, 1999–46 I.R.B. 573
99–109, 1999–46 I.R.B. 573
99–110, 1999–46 I.R.B. 574
99–111, 1999–47 I.R.B. 587
99–112, 1999–49 I.R.B. 649
99–113, 1999–50 I.R.B. 673
99–114, 1999–50 I.R.B. 674
99–115, 1999–52 I.R.B. 763
99–116, 1999–52 I.R.B. 763
Notices:
99–34, 1999–35 I.R.B. 323
99–35, 1999–28 I.R.B. 26
99–37, 1999–30 I.R.B. 124
99–38, 1999–31 I.R.B. 138
99–39, 1999–34 I.R.B. 313
99–40, 1999–35 I.R.B. 324
99–41, 1999–35 I.R.B. 325
99–42, 1999–35 I.R.B. 325
99–43, 1999–36 I.R.B. 344

99–44, 1999–35 I.R.B. 326

Revenue Rulings:

Notices—Continued
99–45, 1999–37 I.R.B. 415
99–46, 1999–37 I.R.B. 415
99–47, 1999–36 I.R.B. 391
99–48, 1999–38 I.R.B. 429
99–49, 1999–39 I.R.B. 436
99–50, 1999–40 I.R.B. 444
99–51, 1999–40 I.R.B. 447
99–52, 1999–43 I.R.B. 525
99–53, 1999–46 I.R.B. 565
99–54, 1999–47 I.R.B. 579
99–55, 1999–49 I.R.B. 638
99–56, 1999–50 I.R.B. 668
99–57, 1999–51 I.R.B. 693
99–58, 1999–51 I.R.B. 694
99–59, 1999–52 I.R.B. 761
99–60, 1999–52 I.R.B. 762
99–61, 1999–52 I.R.B. 762

99–50, 1999–52, I.R.B. 757
99–51, 1999–52, I.R.B. 760
99–29, 1999–27 I.R.B. 3
99–30, 1999–28 I.R.B. 24
99–31, 1999–37 I.R.B. 410
99–32, 1999–31 I.R.B. 135
99–33, 1999–34 I.R.B. 251
99–34, 1999–33 I.R.B. 247
99–35, 1999–34 I.R.B. 278
99–36, 1999–35 I.R.B. 319
99–37, 1999–36 I.R.B. 336
99–38, 1999–36 I.R.B. 335
99–39, 1999–38 I.R.B. 424
99–40, 1999–40 I.R.B. 441
99–41, 1999–40 I.R.B. 439
99–42, 1999–41 I.R.B. 497
99–43, 1999–42 I.R.B. 506
99–44, 1999–44 I.R.B. 549
99–45, 1999–45 I.R.B. 558
99–46, 1999–45 I.R.B. 557
99–47, 1999–48 I.R.B. 588
99–48, 1999–49 I.R.B. 600
99–49, 1999–50 I.R.B. 667
99–50, 1999–50 I.R.B. 656
99–51, 1999–50 I.R.B. 652
99–52, 1999–50 I.R.B. 652
99–53, 1999–50 I.R.B. 657
99–54, 1999–51 I.R.B. 675
99–55, 1999–51 I.R.B. 675
99–56, 1999–51 I.R.B. 676
99–57, 1999–51 I.R.B. 678
99–58, 1999–52 I.R.B. 701

Proposed Regulations:
REG–252487–96, 1999–34 I.R.B. 303
REG–101519–97, 1999–29 I.R.B. 114
REG–107069–97, 1999–36 I.R.B. 346
REG–121063–97, 1999–43 I.R.B. 540
REG–106010–98, 1999–40 I.R.B. 493
REG–106527–98, 1999–34 I.R.B. 304
REG–108287–98, 1999–28 I.R.B. 27
REG–113526–98, 1999–37 I.R.B. 417
REG–113909–98, 1999–30 I.R.B. 125
REG–116733–98, 1999–36 I.R.B. 392
REG–116991–98, 1999–32 I.R.B. 242
REG–121946–98, 1999–36 I.R.B. 403
REG–103841–99, 1999–49 I.R.B. 639
REG–104939–99, 1999–49 I.R.B. 643
REG–105237–99, 1999–35 I.R.B. 331
REG–105327–99, 1999–29 I.R.B. 117
REG–105565–99, 1999–37 I.R.B. 419
REG–110385–99, 1999–50 I.R.B. 670
REG–115932–99, 1999–47 I.R.B. 583
REG–116125–99, 1999–44 I.R.B. 552
Railroad Retirement Quarterly Rate:
1999–45 I.R.B. 560
1999–46 I.R.B. 563
Revenue Procedures:
99–28, 1999–29 I.R.B. 109
99–29, 1999–31 I.R.B. 138
99–30, 1999–31 I.R.B. 221
99–31, 1999–34 I.R.B. 280
99–32, 1999–34 I.R.B. 296
99–33, 1999–34 I.R.B. 301
99–34, 1999–40 I.R.B. 450
99–35, 1999–41 I.R.B. 501
99–36, 1999–42 I.R.B. 509
99–37, 1999–42 I.R.B. 517
99–38, 1999–43 I.R.B. 525
99–39, 1999–43 I.R.B. 532
99–40, 1999–46 I.R.B. 565
99–41, 1999–46 I.R.B. 566
99–42, 1999–46 I.R.B. 568
99–43, 1999–47 I.R.B. 579
99–44, 1999–48 I.R.B. 598
99–45, 1999–49 I.R.B. 603
99–46, 1999–49 I.R.B. 605
99–47, 1999–49 I.R.B. 624
99–48, void
99–49, 1999–52, I.R.B. 725

Social Security Contribution and
Benefit Base; Domestic Employee
Coverage Threshold:
99–52 I.R.B. 763
Treasury Decisions:
8822, 1999–27 I.R.B. 5
8823, 1999–29 I.R.B. 34
8824, 1999–29 I.R.B. 62
8825, 1999–28 I.R.B. 19
8826, 1999–29 I.R.B. 107
8827, 1999–30 I.R.B. 120
8828, 1999–30 I.R.B. 120
8829, 1999–32 I.R.B. 235
8830, 1999–38 I.R.B. 430
8831, 1999–34 I.R.B. 264
8832, 1999–35 I.R.B. 315
8833, 1999–36 I.R.B. 338
8834, 1999–34 I.R.B. 251
8835, 1999–35 I.R.B. 317
8836, 1999–37 I.R.B. 411
8837, 1999–38 I.R.B. 426
8838, 1999–38 I.R.B. 424
8839, 1999–41 I.R.B. 498
8840, 1999–47 I.R.B. 575
8841, 1999–48 I.R.B. 593
8842, 1999–47 I.R.B. 576
8843, 1999–48 I.R.B. 590
8844, 1999–50 I.R.B. 661
8845, 1999–51 I.R.B. 684
8846, 1999–51 I.R.B. 679
8847, 1999–52 I.R.B. 701
8848, 1999–52 I.R.B. 723

1

A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1999–1 through 1999–26
is in Internal Revenue Bulletin 1999–27, dated July
6, 1999.

2000–1 I.R.B.

ii

January 3, 2000

Finding List of Current Action on
Previously Published Items1

Revenue Procedures—Continued

Bulletins 1999–27 through 1999–52

71–35
Superseded by
Rev. Proc. 99–32, 1999–34 I.R.B. 296

Announcements:
99–5
Modified by
Ann. 99–106, 1999–45 I.R.B. 561
99–57
Modified by
Ann. 99–104, 1999–44 I.R.B. 555
99–59
Corrected by
Ann. 99–67, 1999–28 I.R.B. 31
Notices:
83–10
Modified by
Notice 99–44, 1999–35 I.R.B. 326
96–64
Modified by
Notice 99–40, 1999–35 I.R.B. 324
97–26
Modified by
Notice 99–41, 1999–35 I.R.B. 325
97–50
Modified and superseded by
Notice 99–41, 1999–35 I.R.B. 325
97–73
Modified by
Notice 99–37, 1999–30 I.R.B. 124
98–7
Modified by
Notice 99–37, 1999–30 I.R.B. 124
98–46
Modified by
Notice 99–37, 1999–30 I.R.B. 124
98–47
Modified and superseded by
Notice 99–41, 1999–35 I.R.B. 325
98–54
Modified by
Notice 99–37, 1999–30 I.R.B. 124
98–59
Modified by
Notice 99–37, 1999–30 I.R.B. 124
Proposed Regulations:
REG–208156–91
Corrected by
Ann. 99–65, 1999–27 I.R.B. 9
Revenue Procedures:

Rev. Proc. 99–32, 1999–34 I.R.B. 296

72–22
Superseded by
Rev. Proc. 99–32, 1999–34 I.R.B. 296
72–46
Superseded by
Rev. Proc. 99–32, 1999–34 I.R.B. 296
72–48
Superseded by
Rev. Proc. 99–32, 1999–34 I.R.B. 296
72–53
Superseded by
Rev. Proc. 99–32, 1999–34 I.R.B. 296
89–48
Obsoleted (after Jan. 31, 2000) by
Notice 99–42, 1999–35 I.R.B. 325
89–49
Obsoleted (after Jan. 31, 2000) by
Notice 99–42, 1999–35 I.R.B. 325
90–57
Modified and superseded by
Rev. Proc. 99–50, 1999–52 I.R.B. 757
96–9
Superseded by
Rev. Proc. 99–28, 1999–29 I.R.B. 109
96–17
Modified by
Rev. Proc. 99–39, 1999–43 I.R.B. 532
96–47
Amplified and superseded by
Rev. Proc. 99–40, 1999–46 I.R.B. 565
97–19
Modified by
Notice 99–41, 1999–35 I.R.B. 325
97–47
Amplified, clarified, modified, and superseded by
Rev. Proc. 99–39, 1999–43 I.R.B. 532
98–10
Modified by
Rev. Proc. 99–45, 1999–49 I.R.B. 603

98–60
Modified and superseded by
Rev. Proc. 99–49, 1999–52 I.R.B. 725
98–63
Modified by Ann. 99–7 and superseded by
Rev. Proc. 99–38, 1999–43 I.R.B. 525
99–3
Amplified by
Rev. Proc. 99–51, 1999–52 I.R.B. 760
99–19
Modified and superseded by
Rev. Proc. 99–43, 1999–47 I.R.B. 579
99–29
Corrected by
Ann. 99–112, 1999–49 I.R.B. 649
Revenue Rulings:
66–9
Revoked by
Rev. Rul. 99–56, 1999–51 I.R.B. 676
66–223
Obsoleted by
T.D. 8846, 1999–51 I.R.B. 679
69–556
Modified and superseded by
Rev. Proc. 99–50, 1999–52 I.R.B. 757
73–51
Revoked by
Rev. Rul. 99–56, 1999–51 I.R.B. 676
73–98
Obsoleted by
T.D. 8846, 1999–51 I.R.B. 679
77–475
Modified and superseded by
Rev. Rul. 99–40, 1999–40 I.R.B. 441
80–159
Obsoleted by
T.D. 8846, 1999–51 I.R.B. 679
81–225
Modified by
Rev. Proc. 99–44, 1999–48 I.R.B. 598
82–80
Superseded by
Rev. Proc. 99–32, 1999–34 I.R.B. 296

98–22
Clarified and supplemented by
Rev. Proc. 99–31, 1999–34 I.R.B. 280

84–58
Modified and superseded by
Rev. Rul. 99–40, 1999–40 I.R.B. 441

98–24
Superseded by
Rev. Proc. 99–47, 1999–49 I.R.B. 624

88–98
Modified and superseded by
Rev. Rul. 99–40, 1999–40 I.R.B. 441

65–17
Superseded by
Rev. Proc. 99–32, 1999–34 I.R.B. 296

98–35
Superseded by
Rev. Proc. 99–29, 1999–31 I.R.B. 138

65–31
Superseded by
Rev. Proc. 99–32, 1999–34 I.R.B. 296

98–37
Superseded by
Rev. Proc. 99–34, 1999–40 I.R.B. 450

70–23
Superseded by

98–52
Superseded by
Rev. Proc. 99–46, 1999–49 I.R.B. 605

88–225
Modified by
Rev. Rul. 99–44, 1999–48 I.R.B. 598
93–48
Obsoleted by
T.D. 8846, 1999–51 I.R.B. 679

1 A cumulative finding list of previously published
items in Internal Revenue Bulletins 1999–1 through
1999–26 is in Internal Revenue Bulletin 1999–27,
dated July 6, 1999.

January 3, 2000

iii

2000–1 I.R.B.

Finding List of Current Action on
Previously Published Items1
Bulletins 1999–27 through 1999–52
Revenue Procedures—Continued
98–58
Supplemented and superseded by
Rev. Rul. 99–50, 1999–50 I.R.B. 656
98–59
Supplemented and superseded by
Rev. Rul. 99–49, 1999–50 I.R.B. 667
99–23
Corrected by
Ann. 99–89, 1999–36 I.R.B. 408
Treasury Decisions:
8476
Corrected by
Ann. 99–74, 1999–30 I.R.B. 133
8742
Corrected by
Ann. 99–73, 1999–30 I.R.B. 133
8793
Corrected by
Ann. 99–75, 1999–30 I.R.B. 134
8805
Corrected by
Ann. 99–66, 1999–27 I.R.B. 9
8806
Corrected by
Ann. 99–84, 1999–33 I.R.B. 248
8819
Corrected by
Ann. 99–47, 1999–28 I.R.B. 29
8823
Corrected by
Ann. 99–86, 1999–35 I.R.B. 332
8825
Corrected by
Ann. 99–100, 1999–42 I.R.B. 522
8827
Corrected by
Ann. 99–111, 1999–47 I.R.B. 587

1

A cumulative finding list of previously published
items in Internal Revenue Bulletins 1999–1 through
1999–26 is in Internal Revenue Bulletin 1999–27,
dated July 6, 1999.

2000–1 I.R.B.

iv

January 3, 2000

Index
Internal Revenue Bulletins
1999–27 Through 1999–52
For a cumulative index of items published in Internal Revenue Bulletins
1999–1 through 1999–26, see Internal
Revenue Bulletin 1999–27, dated July
6, 1999.
The abbreviation and number in parenthesis following the index entry refer to
the specific item; numbers in roman and
italic type following the parenthesis refer
to the Internal Revenue Bulletin in which
the item may be found and the page
number on which it appears.
Key to Abbreviations:
RR
Revenue Ruling
RP
Revenue Procedure
TD
Treasury Decision
CD
Court Decision
PL
Public Law
EO
Executive Order
DO
Delegation Order
TDO
Treasury Department Order
TC
Tax Convention
SPR
Statement of Procedural
Rules
PTE
Prohibited Transaction
Exemption

EMPLOYEE PLANS
Contract treated as annuity contract, conditions (RP 44) 48, 598
Covered compensation tables for 2000
(RR 47) 48, 588
Employee stock ownership plans (Ann
84) 33, 248
Funding:
Full funding limitations, weighted
average interest rate for July 1999
(Notice 38) 31, 138; August 1999
(Notice 39) 34, 313; September
1999 (Notice 49) 39, 436; October
1999 (Notice 52) 43, 52; November
1999 (Notice 54) 47, 579;
December 1999 (Notice 61) 52, 762
Minimum funding standards; approval
of changes in funding method (RP
45) 49, 603
Highly compensated employees; duplicate benefits and nondiscrimination
requirements (RR 51) 50, 652
Limitations on contributions and benefits

January 3, 2000

EMPLOYEE PLANS —
Continued
under section 415:
Repeal of combined limitations,
questions and answers (Notice
44) 35, 326
Cost of living adjustments (Notice
55) 49, 638
Qualifications:
Administrative programs; acceptable
correction method and examples
under the Employee Plans
Compliance Resolution System
(EPCRS) (RP31), 280
Governmental plans; nondiscrimination rules (Notice 40) 35, 324
Regulations:
26 CFR 1.411(d)-4, corrected; employee stock ownership plans, qualified
retirement plan benefits (Ann 84)
33, 248

EMPLOYMENT TAX
Delinquent tax; levy on wages, salary,
and other income; exempt amount
tables (Notice 56) 50, 668
Deposits:
De minimus rule (TD 8822) 27, 5
Electronic funds transfer (TD 8828) 30,
120
Magnetic media (Notice 42) 35, 325
Electronic filing; magnetic media:
Form W-4, Employee’s Withholding
Allowance Certificate, specifications (RP 47) 49, 624
Form 941, Employer’s Quarterly
Federal Tax Return (RP 39) 43, 532
Form 8027, Employer’s Annual
Information Return of Tip Income
and Allocated Tips, specifications
(RP 46) 49, 605
Information reporting seminars for
1999; correction (Ann 67) 28, 31
Railroad retirement, quarterly rate beginning July 1, 1999, 45, 560; October 1,
1999, 46, 563
Regulations:
26 CFR 31.3221-4, added; exception
from supplemental annuity tax on
railroad employers (TD 8832) 35,
315
26 CFR 31.6302-1, amended; electronic funds transfers of federal deposits
(TD 8828) 30, 120
26 CFR 31.6302-1(f)(4), revised;
31.6302-1T, removed; federal

v

EMPLOYMENT TAX —
Continued
employment tax deposits – de minimis rule (TD 8822) 27, 5
Social security contribution and benefit base; domestic employee coverage threshold for 2000, 52, 763
Supplemental annuity tax on railroad
employers, exception (TD 8832) 35,
315

ESTATE TAX
Adequate disclosure, period of limitations; adjusted taxable gifts (TD 8845)
51, 683
Generation-skipping transfer tax; retention of a trust’s exempt status (REG103841-99) 49, 639
Marital/charitable deduction; administration expenses on the valuation of property (TD 8846) 51, 679
Payment by electronic funds transfer (TD
8828) 30, 120
Proposed Regulations:
26 CFR 26.2601-1, amended; retention
of a trust’s exempt status for generation-skipping transfer tax purposes
in the case of modifications, etc.
(REG-103841-99) 49, 639
Regulations:
26 CFR 20.2001-1, revised; 25.25041, -2, revised; 25.2511-2, revised;
301.6501(c)-1, amended; adequate
disclosure of gifts (TD 8845) 51,
683
26 CFR 20.2013-4, amended; 20.20553, amended; 20.2056(b)-4, amended; effect of property valuation
administration expenses on estate
tax marital/charitable deduction (TD
8846) 51, 679
26 CFR 20.2031-7A, -7T, 20.7520-1T,
corrected; valuation of annuities,
interest for life or term of years, and
remainder or reversionary interests
(Ann 47) 28, 29
26 CFR 20.6302-1, added; electronic
funds transfers of tax (TD 8828) 30,
120
Valuation of annuities, etc. (Ann 47) 28,
29

EXCISE TAX
Payment by electronic funds transfer (TD
8828) 30, 120

2000–1 I.R.B.

EXCISE TAX—
Continued

GIFT TAX —
Continued

INCOME TAX —
Continued

Regulations:
26 CFR 40.6302(a)-1, added; electronic funds transfers of tax (TD 8828)
30, 120

tions; adjusted taxable gifts (TD 8845)
51, 683
Generation-skipping transfer tax; retention of a trust’s exempt status (REG103841-99) 49, 639
Payment by electronic funds transfer (TD
8828) 30, 120
Proposed regulations:
26 CFR 25.2702-3, amended; definition of a qualified interest in a
grantor retained annuity trust and a
grantor retained unitrust (REG108287-98) 28, 27
26 CFR 26.2601-1, amended; retention
of a trust’s exempt status for generation-skipping transfer tax purposes
in the case of modifications, etc.
(REG–103841–99) 49, 639
Qualified interest, defined (REG-10828798) 28, 27
Regulations:
26 CFR 20.2001-1, revised; 25.25041,-2, revised; 25.2511-2, revised;
301.6501(c)-1, amended; adequate
disclosure of gifts (TD 8845) 51,
683
26 CFR 25.7520-1T, corrected; valuation of annuities, interest for life or
term of years, and remainder or
reversionary interests (Ann 47) 28,
29
26 CFR 25.6302-1, added; electronic
funds transfers of tax (TD 8828)
30, 120
Valuation of annuities, etc. (Ann 47)
28, 29

Early referrals (RP 28) 29, 109
Customer service program (Ann 98)
42, 520
Prohibition on ex parte communications during the Appeals process
(Notice 50) 40, 444
Balanced system for measuring organizational performance within the IRS (TD
8830) 38, 430
Capital gains; interest in partnerships, S
corporations, and trusts (REG-10652798) 34, 304
Casualty losses, timber; single, identifiable property (RR 56) 51, 676
Charitable contributions, organizations
no longer qualified (Ann 72) 30, 132
Charitable remainder trusts, prevention
of abuse (REG-116125-99) 44, 552
Combined information reporting; merger
or acquisition (RP 50) 52, 757
Consolidated returns, limitations:
Certain losses and deductions (TD
8823) 29, 34; correction (Ann 86)
35, 332
Foreign losses and separate limitation
losses (TD 8833) 36, 338
NOL carryforwards and built-in losses
(TD 8824) 29, 62
Consumer Price Index (CPI) adjustments:
Below-market loans under section
7872(g) for 2000 (RR 49) 50, 667
Certain loans under section 1274A for
2000 (RR 50) 50, 656
Corporate tax shelter; distributions of
encumbered property (Notice 59) 52,
761
Cost-of-living adjustments, 2000 (RP 42)
46, 568
Credits:
Education credits; information reporting (Notice 37) 30, 124
Foreign tax credit:
Foreign losses and separate limitation losses, consolidated returns
(TD 8833) 36, 338
Income subject to separate limitations (Ann 66) 27, 9
Work opportunity tax credit; welfare-to-work tax credit (Notice
51) 40, 447
Debt indicators; obtainable by e-filers in
exchange for reporting abuse (Notice
58) 51, 693
Depletion:
Ground water for irrigation, Ogallala

EXEMPT
ORGANIZATIONS
Administrative appeal procedures; interest on bond issue (RP 35) 41, 501
Disclosure rules, private foundations
(REG-121946-98) 36, 403
Forms 990, 990-EZ, 990-T, and 990-PF,
clarify instructions; reporting activities
of disregarded entities (Ann 102) 43,
545
List of organizations classified as private
foundations (Ann 64) 27, 7; (Ann 68)
28, 31; (Ann 70) 29, 118; (Ann 78) 31,
229; (Ann 83) 32, 242; (Ann 85) 33,
248; (Ann 80) 34, 310; (Ann 87) 35,
333; (Ann 88) 36, 407; (Ann 91) 37,
421; (Ann 92) 38, 433; (Ann 94) 39,
437; (Ann 96) 41, 504; (Ann 103) 43,
546; (Ann 105) 44, 555; (Ann 107) 45,
561; (Ann 109) 46, 573; (Ann 115) 52,
763
Proposed regulations:
26 CFR 301.6104(d)-1, removed;
301.6104(d)-2 redesignated as
301.6104(d)-0 and revised;
301.6104(d)-3 redesignated as
301.6104(d)-1 and amended;
301.6104(d)-4 redesignated as
301.6104(d)-2 and amended;
301.6104(d)-5 redesignated as
301.6104(d)-3 and amended; private
foundation disclosure rules (REG121946-98) 36, 403
Publication 3386, Tax Guide for
Veterans’ Organizations (Ann 114) 50,
674
Revocations (Ann 72) 30, 132; (Ann 97)
41, 505
Tax Conventions:
Guidance concerning a competent
authority agreement between the
U.S. and Canada relating to Article
XXI (Exempt Organizations)(Notice
47) 36, 391

GIFT TAX
Adequate disclosure, period of limita-

2000–1 I.R.B.

INCOME TAX
Acquisitions:
Allocation of purchase price (REG107069-97) 36, 346
Recognition of gain; statutory presumption (REG-116733-98) 36, 392
Action on Decision; court decisions in
1999-35 I.R.B. 314; correction (Ann
116) 52, 763
Adequate disclosure; substantial understatement (RP 41) 46, 566
Adoption taxpayer identification numbers (TD 8839) 41, 498
Allocation of income and deductions;
adjustments of accounts (RP 32) 34,
296
Appeals:

vi

January 3, 2000

INCOME TAX—
Continued

INCOME TAX—
Continued

INCOME TAX—
Continued

Formation (Ann 90) 36, 409
Depreciation and amortization, Form
4562, correction to recovery period for
personal property (Ann 82) 32, 244
Depreciation– section 168:
Treasury depreciation study; request
for public comment (Notice 34) 35,
323
Early referral of issues to Appeals (RP
28) 29, 100
Electronic filing:
Form 1042-S; magnetic media specifications (Ann 79) 31, 229
Forms 1098, 1099, 5498, W-2G; magnetic media specifications (RP 29)
31, 138; correction (Ann 112) 49,
649
Enhanced oil recovery credit for 1999
(Notice 45) 37, 415
Entity classification:
Transfer of property, special basis rule;
partial withdrawal of
REG–105162–97 (Ann 113) 50, 673
Treatment of elective changes (TD
8844) 50, 661
State law limited partnership; S corporation status (RP 51) 52, 760
Special rule for certain foreign eligible
entities; changes (REG-110385-99)
50, 670
Estimated tax payments:
Elimination of magnetic tape (Notice
42) 35, 325
Interest on underpayments (RR 40) 40,
441
Farm income averaging (REG-12106397) 43, 540
Federal tax lien, withdrawal of notice
(REG-101519-97) 29, 114; public
hearing (Ann 108) 46, 573
Foreign contingent debt (Ann 76) 31,
223
Foreign person:
Distributions to (TD 8834) 34, 251
Grantor trust (TD 8831) 34, 264;
(REG-252487-096) 34, 303
Forms:
1096, 1098, 1099, 5498 and W-2G,
substitute forms specifications (RP
34) 40, 450
4562, correction to recovery period for
personal property (Ann 82) 32, 244
5329, corrections to instructions (Ann
93) 36, 409
8853, corrections to instructions (Ann

93) 36, 409
10318, ground water for irrigation,
obsolete (Ann 90) 36, 429
Gifts:
Individual Development Accounts
(IDAs) (RR 44) 44, 549
Individual retirement arrangements:
Recharacterization (Ann 104) 44, 555
Recharacterizations and reconversions
(Ann 106) 45, 561
Inflation-indexed debt instruments (TD
8838) 38, 424
Information reporting:
Payments of gross proceeds to attorneys (Notice 53) 46, 565
Royalty payments, Indians (Notice 60)
52, 762
Installment sales, depreciable real property (TD 8836) 37, 411
Insurance companies:
Closing agreements under section
7702 (Notice 48) 38, 429
Differential earnings rate and recomputed differential earnings rate for
mutual life insurance companies
(RR 35) 34, 278
Foreign companies, minimum effectively connected net investment
income (RP 30) 31, 221
Loss payment patterns and discount
factors; 1999 accident year (RP 36)
42, 509
Salvage discount factors; 1999 accident year (RP 37) 42, 517
Interest:
DISC shareholders; base period T-bill
rate for 1999 (RR 52) 50, 652
Investment:
Federal short-term, mid-term, and
long-term rates for July 1999 (RR
29) 27, 3; August 1999 (RR 32)
31, 135; September 1999 (RR 37)
36, 336; October 1999 (RR 41)
40, 439; November 1999 (RR 45)
45, 558; December 1999 (RR 48)
49, 600
Rates:
Quarterly underpayments and overpayments beginning October 1,
1999 (RR 36) 35, 319; January 1,
2000 (RR 53) 50, 657
Interest netting; overlapping tax underpayments and overpayments (RP 43)
47, 579
International taxation, twelfth annual

institute (Ann 99) 42, 522
Inventory:
LIFO:
Price indexes; department stores for
May 1999 (RR 30) 28, 24; June
1999 (RR 34) 33, 247; July 1999
(RR 31) 37, 410; August 1999
(RR 42) 41, 497; September 1999
(RR46) 45, 557; October 1999
(RR 55) 51, 675
Last known address; definition (REG104939-99) 49, 643
Litigation guideline memoranda (1/1/8610/20/98) available for public inspection (Ann 81) 32, 244
Long-term contracts, accounting for
(Ann 65) 27, 9
Low-income housing tax credit:
Housing Opportunities for Persons
with AIDS (RR 39) 38, 424
Satisfactory bond; “bond factor”
amounts for the period July through
September 1999 (RR 38) 36, 335;
October through December 1999
(RR 54) 51, 675
Unused housing credit carryovers under
section 42(h)(3)9D) for 1999 (RP 33)
34, 301
Marginal production rates for 1999; oil
and gas (Notice 46) 37, 415
Meals, convenience of employer (Ann77)
32, 243
Medical savings accounts:
Excess contributions (Ann 93) 36, 409
Pilot project “cut-off” date (Ann 95)
42, 520
Methods of accounting; automatic consent (RP 49) 52, 725
Missing children photos:
Use in IRS tax products (Ann 110) 46,
574
Use of penalty mail (TD 8848) 52, 723
Nonrecognition exchanges, foreign persons, U.S. real property interests
(Notice 43) 36, 344
Original issue discount (OID), tables no
longer on IRS electronic bulletin board
(Ann 71) 31, 223
Optional standard mileage rates; 2000
(RP 38) 43, 525
Page numbers change in Internal
Revenue Bulletins (Ann 69) 28, 33
Partnership agreement amendments; cancellation of indebtedness (RR 43) 42, 506
Partnership returns:

January 3, 2000

vii

2000–1 I.R.B.

INCOME TAX—
Continued
Filing requirement (TD 8841) 48, 593
Magnetic media requirements (TD
8843) 48, 590
Partnership interest:
Adjustments following sales (TD
8847) 52, 701
Special basis rules (Notice 57) 51, 692
Partnership transactions; exchange of
stock for property (RR 57) 51, 678
Payment of tax:
Credit cards and debit cards (Ann75)
30, 134
Electronic funds transfer (TD 8828)
30, 120
Private delivery services; timely filing or
payment (Notice 41) 35, 325
Private foundations, organizations classified as (Ann 64) 27, 7; (Ann 68) 28,
31; (Ann 70) 29, 118; (Ann 78) 31,
229; (Ann 83) 32, 242; (Ann 85) 33,
248; (Ann 80) 34, 310; (Ann 87) 35,
333; (Ann 88) 36, 407; (Ann 91) 37,
421; (Ann 92) 38, 433; (Ann 94) 39,
437; (Ann 96) 41, 504; (Ann 103) 43,
546; (Ann 105) 44, 555; (Ann 107) 45,
561; (Ann 109) 46, 573; (Ann 115) 52,
763
Proposed regulations:
26 CFR 1.1(h)-1, added; 1.1223-3,
added; 1.741-1, amended; capital
gains, partnership, subchapter S, and
trust provisions (REG 106527-98)
34, 304
26 CFR 1.110-1, added; qualified
lessee construction allowances for
short-term leases (REG-106010-98)
40, 493
26 CFR 1.148-1(e), amended; definition of investment-type property for
arbitrage and related restrictions
applicable to tax-exempt bonds
issued by state and local governments (REG-113526-98) 37, 417
26 CFR 1.148-5(e)(2)(iii), revised;
1.148-5(e)(2)(iv), removed; arbitrage restrictions applicable to taxexempt bonds issued by state and
local governments (REG-10556599) 37, 419
26 CFR 1.163-7 amended; 1.1275-1(f),
revised; 1.1275-2(d), revised;
1.1275(k), added; reopenings of
Treasury securities and other debt
instruments (REG-115932-99) 47,
583

2000–1 I.R.B.

INCOME TAX—
Continued
26 CFR 1.338-0 through -3, revised;
1.338-4 and 1.338-5 redesignated as
1.338-8 and 1.338-9; 1.338-4
through 1.338-7m added; 1.338(b)3T, removed 1.338-10, added;
1.338(h)(10)-1 and 1.1060-1T,
removed; allocation of purchase
price in deemed and actual asset
acquisitions (REG-107069-97) 36,
346
26 CFR 1.355-0, amended; 1.355-7,
added; recognition of gain on certain distributions of stock or securities in connection with acquisition
(REG-116733-98) 36, 392
26 CFR 1.460-4, corrected; accounting
for long-term contracts (Ann 65) 27,
9
26 CFR 1.643(a)-8, added; 1.664-1,
amended; charitable remainder
trusts (REG-116125-99) 44, 552
26 CFR 1.671-2(e), revised; inbound
grantor trusts with foreign grantors
(REG-252467-96) 34, 303
26 CFR 1.743-2, withdrawn; partial
withdrawal of REG-105162-97; special basis rules for transfer of property by a partnership to a corporation (Ann 113) 50, 673
26 CFR 1.904-5(k)(1), revised; 1.9540, -1, amended; 1.954-2(a)(5) and
(a)(6), added; 1.954-9, added; under
subpart F: withdrawal of guidance
relating to partnerships and branches; new guidance relating to certain
hybrid transactions (REG-11390998) 30, 125
26 CFR 1.1301-1, added; farm income
averaging (REG-121063-97) 43,
540
26 CFR 1.1397E-1, amended; qualified zone academy bonds; obligations of states and political subdivisions (REG-105327-99) 29, 117
26 CFR 1.6109-2, paragraph (a),
revised and paragraph (d), added;
alternative identifying numbers for
income tax return preparers (REG105237-99) 35, 331
26 CFR 301.6323(j)-1, added; withdrawal of notice of federal tax lien
in certain circumstances (REG101519-97) 29, 114; public hearing
(Ann 108) 46, 573

viii

INCOME TAX—
Continued
26 CFR 301.6212-2, added; last
known address; definition (REG104939-99) 49, 643
26 CFR 301.7122-1, added; compromise of tax liabilities (REG-11699198) 32, 242
26 CFR 301.7701-2, -3, amended; special rule for certain foreign eligible
entities (REG-110385-99) 50, 670
Publications:
527, corrected (Ann 82) 32, 244
1494, Tables for Figuring Amount
Exempt From Levy on Wages,
Salary, and Other Income (Notice
56) 50, 668
Qualified lessee construction allowances,
short term leases; exclusion (REG106010-98) 40, 493
Qualified zone academy bonds:
Credit rate (Notice 35) 28, 26
Credit rate and reimbursement rules
(TD 8826) 29, 107; (REG-10532799) 29, 117
Regulations:
26 CFR 1.148-11, corrected; arbitrage
restrictions on tax-exempt bonds
(Ann 74) 30, 133
26 CFR 1.170A-12T, 1.7520-1T, corrected; valuation of annuities, interests for life or terms of years and
remainder or reversionary interests
(Ann 47) 28, 29
26 CFR 1.367(e)-0T, -1T,-2T,
removed; 1.367(e)-0, -1, -2, added;
1.6038B-1, -1T, amended; treatment
of distribution to foreign persons
under sections 367(e)(1) and (2)
(TD 8834) 34, 251
26 CFR 1.382-5T redesignated as
1.382-5, amended; 1.382-8T redesignated as 1.382-8, amended; 1.3821, -2, -2T, -4, amended; application
of section 382 in short taxable years
and with respect to controlled
groups (TD 8825) 28, 19; correction
(Ann 100) 42, 522
26 CFR 1.453-12, added; capital gains,
installment sales (TD 8836) 37, 411
26 CFR 1.643(h)-1, added; 1.671-2(e),
revised; 1.671-2T, added; 1.672(f)-1
through -5, added; inbound grantor
trusts with foreign grantors (TD
8831) 34, 264
26 CFR 1.732-1, -2, amended; 1.7341(e), added; 1.743-1, revised; 1.751-

January 3, 2000

INCOME TAX—
Continued
1, amended; 1.754-1, amended;
1.755-1, revised; 1.1017-1, amended; 602.101(b), amended; adjustments following sales of partnership
interests (TD 8847) 52, 701
26 CFR 1.904-4, corrected; income
subject to separate limitations (Ann
66) 27, 9
26 CFR 1.904-5, amended; 1.904-5T,
removed; 1.954-1, amended; 1.9541T, -2T, removed; removal of regulations providing guidance under
subpart F relating to partnerships
and branches (TD 8827) 30, 120;
correction (Ann 111) 47, 587
26 CFR 1.1271-0, amended; 1.1275-2,
amended; 1.1275-2(T), added;
1.1275-7, amended; reopenings of
Treasury securities (TD 8840) 47,
575
26 CFR 1.1275-7T redesignated as
1.1275-7; 1.1286-2T redesignated as
1.286-2 and amended; 1.148-4,
amended; 1.163-13, amended;
1.171-3, amended; 1.1271-0(b),
amended; 1.1275-4, amended; inflation-indexed debt instruments (TD
8838) 38, 424
26 CFR 1.1362-3, amended; 1.150276, amended; acquisition of an S
corporation by a consolidated group
(TD 8842) 47, 576
26 CFR 1.1397E-1T, amended; qualified zone academy bonds; obligations of states and political subdivisions (TD 8826) 29, 107
26 CFR 1.1502-9T, removed; 1.15023T, amended; 1.1502-9 redesignated
as 1.1502-9A and amended; 1.15029, added; overall foreign losses and
separate limitation losses (TD 8833)
36, 338
26 CFR 1.1502-15T, -21T, -22T, -23T,
removed; 1.1502-1, amended;
1.1502-15, -21, -22, -23, added;
consolidated returns–limitations on
the use of certain losses and deductions (TD 8823) 29, 34; correction
(Ann 86) 35, 332
26 CFR 1.1502-90T redesignated as
1.1502-90A; 1.1502-91T through
–99T, removed; 1.1502-90 through
–99 added; 1.1502-91A through
–99A, added; 1.1502-20, amended;
limitations on net operating loss car-

January 3, 2000

INCOME TAX—
Continued

INCOME TAX—
Continued

ryforwards and certain built-in losses and credits following an ownership change of a consolidated group
(TD 8824) 29, 62
26 CFR 1.6031-1, removed; 1.6031(a)1, added; 1.6063-1, amended;
301.6031-1 removed; 301.6031(a)1, added; 602.101(b), amended;
partnership filing requirement (TD
8841) 48, 593
26 CFR 1.6109-2, paragraph (a)
revised and paragraph (d), added:
1.6109-2T, added; alternative identifying numbers for income tax return
preparers (TD 8835) 35, 317
26 CFR 1.6302-4, revised; electronic
funds transfers of federal deposits
(TD 8828) 30, 120
26 CFR 301.6011-3, added; 301.67211, amended; magnetic media
requirements for partnership returns
(TD 8843) 48, 590
26 CFR 301.6109-1T, -3T, removed;
301.6109-1, amended; 301.6109-3,
added; 602.101(b), amended; IRS
adoption taxpayer identification
numbers (TD 8839) 41, 498
26 CFR 301.6109-1, amended;
301.7701-2, -3, amended; treatment
of changes in elective entity classification (TD 8844) 50, 661
26 CFR 301.6311-2T, corrected; payment by credit card and debit card
(Ann 75) 30, 134
26 CFR 301.6402-5(h), added;
301.6402-6(n), revised; Tax Refund
Offset Program revised (TD 8837)
38, 426
26 CFR 301.7122-1, removed;
301.7122-0T and -1T, added; compromise of tax liabilities (TD 8829)
32, 235
26 CFR 601.901, added; missing children shown on penalty mail (TD
8848) 52, 723
26 CFR 602.101, corrected; requirements respecting the adoption or
change of accounting method;
extension of time to make elections
(Ann 73) 30, 133
26 CFR 801.1-6, added; establishment
of a balanced measurement system
for the IRS (TD 8830) 38, 430
Regulated investment companies; preferential dividends (RP 40) 46, 565

Reorganizations; continuity of interest
when there is a “buy-back” (RR 58)
52, 701
Return preparers, identifying number
(TD 8835) 35, 317; (REG-105237-99)
35, 331
S corporation; acquisition by a consolidated group (TD 8842) 47, 576
Short tax year, controlled group (TD
8825) 28, 19; correction (Ann 100) 42,
522
Standard Industry Fare Level (SIFL)
rates for the second half of 1999 (RR
33) 34, 251
Start-up expenditures (RR 23) 20, 3; correction (Ann 89) 36, 408
Student loan interest; information reporting (Notice 37) 30, 124
Subpart F:
Hybrid transactions (REG-113909-98)
30, 125
Partnership guidance withdrawn
(REG-113909-98) 30, 125
Partnerships temporary regulations
removed (TD 8827) 30, 120
Substitute forms: 1096, 1098, 1099, 5498
and W-2G; rules and specifications
(RP 34) 40, 450
Tax conventions:
Guidance concerning a competent
authority agreement between the U.S.
and Canada relating to Article XXI of
the tax convention (Notice 47) 36, 391
Tax-exempt bond:
Arbitrage restrictions (Ann 74) 30,
133; (REG-105565-99) 37, 419
Investment-type property, definitions
for arbitrage and related restrictions
(REG-113526-98) 37, 417
Tax refund offset program (TD 8837) 38,
426
Taxes, compromise of (TD 8829) 32,
235; (REG-116991-98) 32, 242
Taxpayer confidentiality; Department of
Treasury study (Ann 101) 43, 544
Treasury securities and other debt instruments; reopenings (TD 8840) 47, 583;
(REG-115932-99) 47, 575
Valuation of a remainder interest (Ann
47) 28, 29

ix

2000–1 I.R.B.

INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold
on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of
Documents when their subscriptions must be renewed.

CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.

HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please
allow two to six weeks, plus mailing time, for delivery.

WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.gov) or write to the IRS Bulletin Unit, OP:FS:FP:P, Room 5617, 1111 Constitution Avenue NW, Washington,
DC 20224.