Taxpayers who believe that the actions of the United States, a treaty country, or both, result or will result in taxation that is contrary to the provisions of an applicable tax treaty are required to submit the requested information in order to receive assistance from the IRS official acting as the U.S. competent authority. The information is used to assist the taxpayer in reaching a mutual agreement with the IRS and the appropriate foreign competent authority.
We are submitting this revenue procedure for emergency OMB review and processing under 5 CFR 1320.13. The revenue procedure provides critical guidance reflecting the current administrative practices of the U.S. competent authority in resolving cases under tax treaties that the United States has entered into with other nations worldwide. This guidance has been under development for almost two years and is responsive to concerns expressed by the public as well as by various divisions of the IRS regarding the prior published guidance in this area. The substantive provisions have been finalized. As of October 30, 2006, the revenue procedure has been cleared for publication by the Treasury Department and the Commissioner's office. The International Tax Counsel at Treasury as well as the Associate Chief Counsel (International) have instructed us to publish the revenue procedure at the earliest possible date, and the Deputy Commissioner (International), LMSB, wants this guidance made available to taxpayers expeditiously. Moreover, early publication of this revenue procedure is needed to fulfill its function as the treaty-related guidance corresponding to the recently published procedures for U.S. competent authority assistance with respect to the tax agencies of the U.S. possessions and territories. It would be detrimental to the mission of the IRS and to legitimate expectations of taxpayers if the IRS does not provide, as contemporaneously as feasible, procedures for dealing consistently with both territorial tax authorities and treaty partners. OMB review is the only step remaining before this revenue procedure can be released.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
RP-104401-05.doc
Procedures for Requesting Competent Authority Assistance Under Tax Treaties