Notice 2013-78

Proposed Revision of
Procedures for Requesting
Competent Authority
Assistance Under Tax
Treaties
Notice 2013–78
PURPOSE
This notice proposes a revenue procedure
that would update and supersede Rev. Proc.
2006–54, 2006–2 C.B. 1035. The proposed

revenue procedure would provide guidance on
requesting assistance from the U.S. competent
authority, acting through the Advance Pricing
and Mutual Agreement program and the
Treaty Assistance and Interpretation Team,
under the provisions of U.S. tax treaties. It
would also provide guidance on determinations the U.S. competent authority may make
on competent authority issues.
The proposed revenue procedure
would substantially restate Rev. Proc.
2006 –54 to improve clarity, readability,
and organization. The proposed revenue

procedure also would reflect structural
changes undertaken by the IRS since
2006, including the establishment of the
Large Business & International Division,
which currently includes the office of the
U.S. competent authority, and of separate
offices under the U.S. competent authority
to handle taxpayer requests for different
types of competent authority assistance.
Additionally, the proposed revenue
procedure would effect a limited number
of significant substantive changes. These
changes may be summarized as follows:

Section of Proposed
Update to Rev. Proc.
Nature of Addition or Changes
2006–54
2.02
Clarifies that competent authority issues may arise as a result of taxpayer-initiated positions.
2.05 and 2.06
Makes clear that the offices of the U.S. competent authority are available, whether or not in the course
of the mutual agreement process, for informal consultations on competent authority-related issues, including informal consultations regarding the steps necessary to achieve greater certainty that a foreign
tax paid, or to be paid, will qualify as a compulsory payment for foreign tax credit purposes.
2.07
Recognizes that a mutual agreement case may arise where the U.S. competent authority notifies a foreign competent authority on a U.S.-initiated case raising competent authority issues. Further recognizes
that the U.S. competent authority can expand the scope of a mutual agreement case to include additional
treaty countries, competent authority issues, or taxable years.
2.10
Elaborates on potential interactions of requests for competent authority assistance and advance pricing
agreements.
3.02
Provides new pre-filing procedures applicable to mutual agreement cases, including mandatory submission of a pre-filing memorandum in cases raising certain issues.
3.04
Clarifies that a request for competent authority assistance generally will not be accepted if barred by tax
treaty provisions imposing time limits for seeking assistance.
3.05(1)
Establishes an appendix listing standard specifications for the content of a request for competent authority assistance in various types of cases.
3.07
Specifies that the U.S. competent authority accepts requests for assistance with respect to certain foreign
pension plan determinations.
3.08
Provides for e-mail communications between the U.S. competent authority and a taxpayer’s representative pursuant to a memorandum of understanding executed by the taxpayer.
4
Provides new streamlined procedures for invoking the accelerated competent authority procedure without
consent of an office conducting examinations.
5.01
Generally subjects small case requests to the same requirements as other requests, subject to case-bycase minimization of administrative burdens.
5.02
Increases dollar thresholds for small case qualification to $5,000,000 for a corporation or partnership and
$1,000,000 for others.
6.01
Clarifies procedures for notification of receipt of a request for competent authority assistance.
6.02(2)
Specifies an example of an unreasonable taxpayer condition to acceptance of a competent authority resolution, resulting in denial of assistance.
6.02(6)(b) – (d)
States additional bases for denying U.S. competent authority assistance.
and 6.02(8) – (12)
7
Describes various aspects of U.S. competent authority consultations and other actions once a request for
assistance is filed, including consultation requirements in treaty limitation-on-benefits provisions, the
possibility of requiring withdrawal of a U.S.-initiated adjustment, and taxpayer requests to make a joint
presentation to the U.S. and foreign competent authorities.
8.01
Specifies that the Simultaneous Appeals Procedure is the primary means for obtaining IRS Appeals and
U.S. competent authority review of the same issue.

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8.02
9.01

9.02
9.03(1)
10.01 and 10.04
11
12
14
16.02

Limits the time frame for invoking Simultaneous Appeals Procedure review to within 60 days after
notification of acceptance of request for assistance.
Provides that the U.S. competent authority will not accept a request for assistance if the taxpayer
has entered into a prior resolution with the IRS office conducting the taxpayer’s examination unless
the U.S. competent authority agreed in writing to the prior resolution.
Provides, subject to a limited exception, that the U.S. competent authority will not accept a request
for assistance if the taxpayer seeks IRS Appeals review of a competent authority issue.
Clarifies the procedures applicable to accepting, or continuing to consider, a request for U.S. competent authority assistance when a matter is pending in litigation.
Describes conditions for finality of resolutions reached by the U.S. competent authority and discusses
notification to the taxpayer where no resolution is reached with respect to a foreign-initiated adjustment.
Restates and revises U.S. competent authority procedures with respect to repatriation payments made in
the mutual agreement context.
Describes basic procedures applicable where a tax treaty contains a provision for mandatory arbitration.
Provides procedures applicable to required notifications under some treaties that a taxpayer has requested
competent authority assistance of the other treaty partner.
Reflects that the amount of the user fee for requests for discretionary relief with respect to limitation on benefits has been increased to $27,500. See Rev. Proc. 2013–1, 2013–1 I.R.B. 1.

The IRS and the Treasury Department
request comments on this proposed revenue procedure. Comments may be submitted in writing on or before March 10,
2014. Comments should be submitted to
Internal Revenue Service, CC:PA:
LPD:PR (Notice 2013–78), Room 5205,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044, or electronically
to
[email protected].
gov. Please include ”Notice 2013–78” in

the subject line of any electronic communications. Alternatively, comments may
be hand delivered between the hours of
8:00 a.m. and 4:00 p.m. Monday to Friday
to CC:PA:LPD:PR (Notice 2013–78),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Ave., NW, Washington, DC. All comments will be available
for public inspection and copying.
Following the issuance of the revenue
procedure proposed in this notice, the IRS

intends to update Rev. Proc. 2006 –23,
2006 –1 C.B. 900, which provides similar
guidance in obtaining competent authority
assistance with respect to the U.S. territories. The update to Rev. Proc. 2006 –23
will be generally consistent with the provisions of such final revenue procedure.
The procedures for requesting competent authority assistance under tax treaties
are proposed to be revised as follows:

PROPOSED REVENUE PROCEDURE
Procedures for Requesting Competent Authority Assistance Under Tax Treaties
26 CFR 601.201: Rulings and determination letters.
Rev. Proc. [2014 –XX]
SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 2. PURPOSE, BACKGROUND, SCOPE, AND GENERAL APPLICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 3. PROCEDURES FOR REQUESTING ASSISTANCE FROM THE U.S. COMPETENT AUTHORITY . . . . . . . . .
SECTION 4. ACCELERATED COMPETENT AUTHORITY PROCEDURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 5. SMALL CASE MAP REQUESTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 6. NOTIFICATION OF RECEIPT AND DENIAL OF ASSISTANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 7. CONSULTATIONS AND OTHER ACTIONS BY THE U.S. COMPETENT AUTHORITY . . . . . . . . . . . . . . . . .
SECTION 8. SIMULTANEOUS APPEALS PROCEDURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 9. INTERACTION AND COORDINATION WITH OTHER ADMINISTRATIVE AND JUDICIAL PROCEEDINGS .
SECTION 10. RESULTS OF MAP CASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 11. MAP REPATRIATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 12. ARBITRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 13. PROTECTIVE CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 14. TREATY NOTIFICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 15. REQUESTS FOR RULINGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 16. USER FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 17. EFFECT ON OTHER DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 18. EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 19. PAPERWORK REDUCTION ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECTION 20. DRAFTING INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION
.01 Definitions. For purposes of this revenue procedure, the following terms have the meanings set forth in this section.

ACAP
ACAP request
ACAP years
Ancillary issues

APA
APA process
APA request
APMA
Applicant
Arbitration treaty
Bilateral APA
Code
Controlled group
Discretionary LOB
relief
Examination resolution

Fast Track Settlement
Foreign competent authority
Foreign pension fund
Foreign-initiated adjustment
Global trading arrangement

Intangible development
arrangement

IRM
IRS
IRS Examination
LB&I
LOB

Bulletin No. 2013–50

Accelerated competent authority procedure (see section 4)
A request to include ACAP years in a MAP case
Taxable years covered by an ACAP request or eligible for ACAP
Subsidiary issues eligible for coverage by a MAP resolution, including MAP repatriation (see
section 11), interest on refunds and deficiencies, penalties with respect to U.S.-initiated adjustments, and the determination of whether a payment is compulsory for foreign tax credit purposes as provided in Treas. Reg. §1.901–2(e)(5)
An advance pricing agreement within the meaning of Rev. Proc. 2014–YY
The steps involved in the process of reaching an APA, as described in Rev. Proc. 2014–YY
A request for an APA filed under Rev. Proc. 2014–YY
The Advance Pricing and Mutual Agreement Program, a representative office of the U.S. competent authority and one of the divisions of TPO
A taxpayer making a request for discretionary LOB relief
A U.S. tax treaty in which the mutual agreement procedure article includes a provision for mandatory arbitration of certain MAP cases (see section 12)
A bilateral APA as defined in Rev. Proc. 2014–YY
The Internal Revenue Code of 1986 (26 U.S.C.), as amended
The group of controlled taxpayers (as that term is defined in Treas. Reg. §1.482–1(i)) of which
the taxpayer filing the MAP request is a member
A determination issued by the U.S. competent authority extending treaty benefits to a taxpayer
that fails to meet any of the objective tests of an LOB article of a U.S. tax treaty
A resolution with IRS Examination on a U.S.-initiated adjustment that is memorialized in a Fast
Track Settlement Session Report, a Form 870 waiver, a Form 870-AD offer, a closing agreement, or any other similar agreement
The program set forth in Rev. Proc. 2003–40, 2003–1 C.B. 1044, or successor guidance
The competent authority of a treaty country
A pension fund that is a resident of a treaty country
A proposed or final adjustment to a filed tax return made by the tax authority of a treaty country
Any arrangement involving multiple associated enterprises or business unit(s) of an enterprise
that operate in more than one country and that trade or deal in securities and/or other financial
products, either on their own behalf or on behalf of clients. Global trading arrangements may
encompass functions ancillary to the foregoing activities
Any arrangement for sharing the costs and risks of developing intangibles, including a cost sharing arrangement as defined in Treas. Reg. §1.482–7, a qualified cost sharing arrangement as defined in Treas. Reg. §1.482–7A (collectively, a “CSA”), and an arrangement (other than a CSA)
for sharing the costs and risks of developing intangibles to which the consideration of the principles, methods, comparability, and reliability considerations set forth in Treas. Reg. §1.482–7 are
relevant in determining the best method, under Treas. Reg. §1.482–4(g) or Treas. Reg. §1.482–
9(m)(3), as appropriately adjusted in light of the differences in facts and circumstances between
such an arrangement and a CSA. See also Treas. Reg. §1.482–1(b)(2)(iii)
Internal Revenue Manual
Internal Revenue Service
The function(s) within the IRS responsible for examining federal tax and information returns and
ascertaining the correctness of any return for purposes of determining the tax liability of taxpayers
Large Business & International Division of the IRS
Limitation on benefits

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MAP
MAP case
MAP issue
MAP process
MAP repatriation
MAP request
MAP resolution
MAP year
Multilateral APA
Non-U.S.-initiated
action
Pre-filing conference
Pre-filing memorandum
Pre-filing requirements
Primary adjustment
Protective claim
Regulations
Repatriation payment

SAP review
Session report
Small case MAP request
TAIT
Taxpayer
Taxpayer-initiated
position
TPO
Treaty country
Treaty notification

U.S. competent authority
U.S. tax treaty

U.S.-initiated adjustment

December 9, 2013

Actions taken by the U.S. competent authority and consultations between the U.S. and foreign competent authorities under U.S. tax treaties, principally under the mutual agreement procedure article
A case initiated by a MAP request or by the U.S. competent authority involving one or more MAP
issues in a given MAP year or set of years
An issue that can be resolved by the U.S. competent authority, principally under the mutual agreement procedure article of a U.S. tax treaty
All steps in the process of reaching a MAP resolution, including steps to comply with applicable
pre-filing requirements
The treatment of repatriation payments pursuant to a MAP resolution (see section 11)
A request for assistance of the U.S. competent authority filed under this revenue procedure
The resolution of MAP issues constituting a MAP case
A taxable year for which a tax return has been filed that is not an ACAP year and in which a MAP
issue has arisen that is the subject of a MAP case
A multilateral APA as defined in Rev. Proc. 2014–YY
A foreign-initiated adjustment or a taxpayer-initiated position
A conference held with the U.S. competent authority before a MAP request is filed
A memorandum or similar paper submitted to the U.S. competent authority before a MAP request is filed
The requirements regarding pre-filing memoranda and pre-filing conferences
An adjustment falling under the associated enterprises article of a U.S. tax treaty or an analogous adjustment made pursuant to a taxpayer-initiated position that is the subject of a MAP case
A notification to the U.S. competent authority described by section 13.02(1)
U.S. Treasury regulations promulgated under the Code
A payment (within the meaning of section 4.01 of Rev. Proc. 99–32, 1999–2 C.B. 296) or a prepayment
offset (within the meaning of section 4.02 of Rev. Proc. 99–32) made with respect to and not exceeding
the amount of a primary adjustment
The review of a MAP issue undertaken by IRS Appeals for the purpose of making a recommendation to
the U.S. competent authority under the Simultaneous Appeals Procedure (see section 8)
The Fast Track Settlement Session Report within the meaning of the term set forth in Rev. Proc. 2003–40,
2003–1 C.B. 1044, or successor guidance
A MAP request involving a U.S.- or foreign-initiated adjustment that falls below the dollar thresholds set
forth in section 5
The Treaty Assistance and Interpretation Team, a representative office of the U.S. competent authority,
which reports directly to the Assistant Deputy Commissioner (International)
A U.S. person, as defined in section 7701(a)(30) of the Code, or a non-U.S. person eligible to seek competent authority assistance when permitted by the applicable U.S. tax treaty
A position taken by a taxpayer (not in response to a proposed or actual adjustment by the IRS or a similar
action by a foreign tax authority) with respect to a tax liability in the United States or in a treaty country
that directly or indirectly results in double taxation
Transfer Pricing Operations, which reports to the Deputy Commissioner (International), LB&I
A country other than the United States that has a U.S. tax treaty in force
The notification by a taxpayer to a competent authority, required under certain U.S. tax treaties, that a request for competent authority assistance has been made to the other competent authority, in particular such
a notification submitted to the U.S. competent authority in the manner and circumstances set forth in section 14
The Deputy Commissioner (International), LB&I, the Assistant Deputy Commissioner (International), and
each other IRS official performing competent authority functions pursuant to applicable delegation orders
A convention governing income, estate, or gift taxes to which the United States is a party and that has
entered into force, together with its implementing protocols, exchanges of diplomatic notes, memoranda of
understanding, and competent authority arrangements
A proposed or final adjustment made by the IRS to a tax return filed by a taxpayer

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.02 Section References. Unless indicated by context or otherwise, section references are to the sections of this revenue
procedure (including the appendix).
.03 Deadline References. If a deadline
under this revenue procedure falls on a
Saturday, Sunday, or a legal holiday in the
District of Columbia, the deadline is extended to the next succeeding day that is
not a Saturday, Sunday, or a legal holiday
in the District of Columbia.
SECTION 2. PURPOSE,
BACKGROUND, SCOPE, AND
GENERAL APPLICATION
.01 Purpose. This revenue procedure
provides guidance on filing MAP requests
and guidance on determinations the U.S.
competent authority may make on MAP
issues. This revenue procedure updates
and supersedes Rev. Proc. 2006 –54,
2006 –2 C.B. 1035.
.02 Background and Scope. U.S. tax
treaties, principally through the mutual
agreement procedure article, permit taxpayers to request the assistance of the U.S.
competent authority in alleviating double
taxation or taxation otherwise not in accordance with such treaties. For example,
U.S. tax treaties generally permit taxpayers to request assistance in order to relieve
economic double taxation arising from an
allocation under section 482 of the Code
or an equivalent provision under the laws
of a treaty country. U.S. tax treaties also
authorize the U.S. and foreign competent
authorities to consult each other to resolve
other MAP issues. MAP issues typically
arise as a result of U.S.- or foreigninitiated adjustments. MAP issues can
also arise as a consequence of taxpayerinitiated positions. For procedures for requesting assistance of the U.S. competent
authority when a taxpayer is or may be
subject to inconsistent tax treatment by
the IRS and a U.S. possession tax agency,
see Rev. Proc. 2006 –23, 2006 –1 C.B. 900
(or successor guidance).
.03 The U.S. Competent Authority. The
Deputy Commissioner (International),
LB&I, is the U.S. competent authority. As
such, the Deputy Commissioner (International) has the authority to apply U.S. tax
treaties. The Deputy Commissioner (International) also has the authority to interpret the provisions of U.S. tax treaties, but
only with the concurrence of the Associ-

Bulletin No. 2013–50

ate Chief Counsel (International). The
same authority has been delegated to the
Assistant Deputy Commissioner (International), LB&I. See Delegation Order 4 –12
(Rev. 2), IRM 1.2.43. Aspects of this authority have been delegated to the directors of the TPO and APMA.
.04 Roles of APMA and TAIT. In general,
the U.S. competent authority endeavors to
resolve MAP issues in a manner that secures
the appropriate tax bases of the United
States and its treaty partners, prevents fiscal
evasion, and is otherwise consistent with
sound tax administration. The U.S. competent authority comprises APMA and TAIT.
APMA has primary responsibility for cases
arising under the business profits and associated enterprises articles of U.S. income tax
treaties. TAIT has primary responsibility for
cases arising under all other articles of U.S.
income tax treaties, including, but not limited to, articles concerning residence, dividends, interest, royalties, income from employment, social security, annuities,
pensions and pension funds, other income,
and limitation on benefits. TAIT also handles cases arising under U.S. estate and gift
tax treaties. APMA and TAIT each can consider cases arising under the permanent establishment articles of U.S. income tax treaties. Regardless of the specific treaty article
or MAP issue that may be presented,
APMA and TAIT will coordinate and collaborate as appropriate on any given case.
.05 Informal Advice Generally. As appropriate, APMA and TAIT will provide
oral, informal advice to taxpayers,
whether or not in the course of the MAP
process, on general matters concerning
MAP issues, including whether a MAP
issue may exist. Any such informal advice
is advisory and is not binding on the IRS.
.06 Informal Consultation on Noncompulsory Payments for Foreign Tax Credit
Purposes. In the course of the MAP process
or outside the MAP process, the issue of
whether the taxpayer has exhausted all effective and practical remedies to reduce its
liability under foreign law for tax (including, in appropriate cases, a request for competent authority assistance) within the
meaning of Treas. Reg. §1.901–2(e)(5) and
Rev. Rul. 92–75, 1992–2 C.B. 197, may be
the subject of informal consultation with the
U.S. competent authority. Taxpayers and
their advisors must ultimately exercise their
independent judgment in developing a posi-

637

tion on the extent to which effective and
practical remedies have been exhausted in
light of their particular facts and circumstances. To assist in consideration of this
issue, the U.S. competent authority, through
the offices of APMA and TAIT, is available
to consult on these matters and, when appropriate, may provide oral, informal advice
regarding necessary next steps. Any such
informal advice is advisory and is not binding on the IRS. Further, when appropriate,
APMA and TAIT will communicate with
IRS Examination regarding these matters to
ensure consistent and coordinated treatment.
It is intended that, through such consultation
processes, taxpayers and the U.S. competent
authority can achieve greater insight into matters pertaining to the application and enforcement of foreign tax laws. Such consultation
processes may also inform the U.S. competent
authority in addressing these matters as ancillary issues in a MAP resolution.
.07 General Requirements for MAP Requests. The U.S. competent authority will
consider the factors set forth in section 6 in
determining whether to provide the assistance sought by the taxpayer in its MAP
request. In no event will the U.S. competent
authority provide assistance to the taxpayer
unless and until: (1) the taxpayer has met the
pre-filing requirements set forth in section
3.02, as applicable; (2) the MAP request as
initially filed is complete, as described in
section 3.05; and (3) the taxpayer has paid
the correct user fee, if required. Where they
exist, specific requirements regarding MAP
requests set forth in U.S. tax treaties take
precedence over the provisions of this revenue procedure.
.08 Scope of MAP Cases. Except as
otherwise provided by this revenue procedure, law or treaty, the U.S. competent
authority will provide assistance with respect to MAP issues and treaty countries
identified in a taxpayer’s MAP request.
However, because the U.S. competent authority has a strong interest in resolving
all potential MAP issues in a timely manner, APMA or TAIT may seek to initiate
a MAP case in the absence of a MAP
request or may require that the scope of a
MAP case be expanded. Examples of such
an expansion include adding treaty countries or MAP issues to the scope of the
MAP case and extending the MAP case to
include ACAP years (see section 4). Recognizing that foreign competent authori-

December 9, 2013

ties may have an interest in expediting
bilateral or multilateral resolution of MAP
issues, the U.S. competent authority under
applicable exchange-of-information provisions of U.S. tax treaties may also notify
foreign competent authorities of MAP
cases that could arise out of anticipated
U.S.-initiated adjustments. In such cases,
the U.S. competent authority will also notify the affected taxpayers.
.09 Closed Cases. A case previously
closed after examination will not be reopened in order to make an adjustment unfavorable to the taxpayer except in the presence of one of the circumstances described
in Rev. Proc. 2005–32, 2005–1 C.B. 1206
(providing procedures for reopening cases if
fraud, substantial error, or certain other circumstances are present).
.10 Coordination of MAP and APA
Processes. APAs and MAP resolutions
are two interconnected means by which
taxpayers can manage and address transfer pricing and other cross-border tax issues. In recognition of these connections,
the U.S. competent authority seeks MAP
resolutions and APAs that achieve substantive and procedural consistency and
coordination in their coverage and application. In particular, the U.S. competent
authority may seek to roll forward a MAP
resolution to ACAP years where it is feasible, practicable, and in the interest of
sound tax administration to do so. Further,
in appropriate cases, the U.S. competent
authority will encourage taxpayers to extend MAP resolutions to future years that
could be covered by an APA. For further
discussion of the relationship and intersections between the MAP process, the
APA process, and ACAP, see Rev. Proc.
2014 –YY.
SECTION 3. PROCEDURES FOR
REQUESTING ASSISTANCE FROM
THE U.S. COMPETENT AUTHORITY
.01 In General. This section sets forth
procedures, rules, and guidelines relevant
to filing a MAP request with the U.S.
competent authority. Instructions on preparing and filing a MAP request are also
set forth in the appendix to this revenue
procedure (generally referred to as the
“appendix”).
.02 Pre-filing Procedures.
(1) In General. In the interest of making the MAP process effective and effi-

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cient, the U.S. competent authority invites, and in some cases requires, the
taxpayer to meet with the U.S. competent
authority in a pre-filing conference prior
to filing the MAP request. For the same
reason, the U.S. competent authority invites, and in some cases requires, the taxpayer to submit a pre-filing memorandum
prior to filing the MAP request. Pre-filing
requirements are set forth in sections
3.02(2) through 3.02(7). Questions about
pre-filing requirements may be directed to
the U.S. competent authority by one of the
means identified in the appendix.
(2) Requesting Pre-filing Conferences.
A taxpayer that wishes to hold a pre-filing
conference with the U.S. competent authority must submit its request as a part of
a pre-filing memorandum filed pursuant to
section 3.02(3) or 3.02(4).
(3) Mandatory Pre-filing Memoranda.
A pre-filing memorandum must be submitted if the MAP issues will, or could
reasonably be expected to, involve any of
the following: (a) a foreign-initiated adjustment in which the total adjustments
exceed $10 million for all MAP years
combined; (b) a taxpayer-initiated position; (c) the license or other transfer of
intangibles in connection with, or the development of intangibles under, an intangible development arrangement; (d) any
arrangement that qualifies as a global trading arrangement; (e) unincorporated
branches, pass-through entities, hybrid entities, or entities disregarded for U.S. tax
purposes; (f) a request for discretionary
LOB relief; or (g) other circumstances in
which the taxpayer believes a MAP issue
has arisen outside the context of an examination, such as in cases involving withholding taxes or guidance issued by a foreign tax authority. If a pre-filing
memorandum is not submitted in any of
the cases described in this section, the
U.S. competent authority may, among
other possible actions, require that the prefiling memorandum be submitted before it
will take action on the MAP request.
(4) Optional Pre-filing Memoranda.
An optional pre-filing memorandum may
be submitted in cases other than those set
forth in section 3.02(3). An optional prefiling memorandum may be advisable in
cases that are expected to present novel or
complex MAP issues.

638

(5) Contents of Pre-filing Memorandum. Whether submitted pursuant to section 3.02(3) or 3.02(4), a pre-filing memorandum must have a length and content
appropriate to the stage, size, and complexity of the MAP issues underlying the
proposed MAP request. The memorandum must also do the following:
(a) Include a “penalties of perjury”
statement modeled on the statement set
forth in the appendix;
(b) State whether the taxpayer requests a
pre-filing conference and, if so, the particular issues the taxpayer wishes to discuss;
(c) Propose at least three possible dates
for a pre-filing conference, whether or not
the taxpayer seeks a pre-filing conference,
in case the U.S. competent authority requires a pre-filing conference;
(d) List the name and contact information for the taxpayer’s point of contact and
provide a Form 2848, Power of Attorney
and Declaration of Representative, authorizing the point of contact to represent the
taxpayer in connection with the MAP request, or a Form 8821, Tax Information
Authorization, authorizing the point of
contact to inspect or receive confidential
tax information about the taxpayer in connection with the MAP request; and
(e) In the case of a non-U.S.-initiated
action, explain the factual and legal basis
of the action and describe any administrative, legal, or other procedural steps undertaken in the applicable treaty country
and any communications with the foreign
competent authority regarding the action.
(6) Place for Submission of Pre-filing
Memorandum. Two printed copies and
one electronic copy of the pre-filing memorandum must be submitted to APMA or
TAIT at the address provided in section 5
of the appendix.
(7) Actions Taken with Respect to Prefiling Conferences and Memoranda. The
U.S. competent authority will notify the
taxpayer whether it will accept or decline
the taxpayer’s request to hold a pre-filing
conference. The taxpayer will also be notified if a pre-filing conference is required,
even if the taxpayer did not request a
conference. If a pre-filing conference is
held, it will address procedural and substantive issues pertinent to the MAP request. During the conference, the taxpayer
should be prepared to discuss the relevant
facts and circumstances surrounding the

Bulletin No. 2013–50

MAP issues. If the U.S. competent authority declines the taxpayer’s request for a
pre-filing conference or decides no prefiling conference is required, it will instruct the taxpayer to proceed to file its
MAP request.
(8) Informal Advice in Pre-filing Conference. Statements or representations
made by the U.S. competent authority in a
pre-filing conference constitute informal
advice and are, therefore, advisory only
(see section 2.05).
.03 Persons Eligible or Required to
File MAP Requests. The U.S. competent
authority will consider MAP requests
from taxpayers eligible to file MAP requests under U.S. tax treaties. If a case is
presented by a foreign competent authority and no corresponding MAP request
has been filed, the U.S. competent authority may require the relevant U.S. taxpayer,
if any (or if none, the foreign person), to
file a corresponding MAP request in accordance with this section, preceded, if
required, by a pre-filing memorandum and
a pre-filing conference.
.04 Time for Filing.
(1) In General. Subject to the requirements regarding pre-filing memoranda
and pre-filing conferences under section
3.02, a taxpayer may file a MAP request at
the times specified in this section.
(2) U.S.-initiated Adjustments. In general, the U.S. competent authority will not
accept a MAP request with regard to a
U.S.-initiated adjustment before the IRS
has communicated the amount of the proposed adjustment in writing to the taxpayer, e.g., a Form 5701 (Notice of Proposed Adjustment) or a Form 4549
(Income Tax Examination Changes). A
MAP request will not be accepted if the
resulting MAP case would be barred by
the time limit set forth in the U.S. tax
treaty or, if not tolled by the treaty or
protective measures, limitations prescribed by domestic law in the United
States or treaty country.
(3) Non-U.S.-initiated Actions. In the
case of a non-U.S.-initiated action, the
taxpayer may submit its mandatory or optional pre-filing memorandum or may file
its MAP request as soon as it reasonably
believes that a MAP issue exists or is
likely to arise. A MAP request will not be
accepted if the resulting MAP case would
be barred by the time limit set forth in the

Bulletin No. 2013–50

U.S. tax treaty or, if not tolled by the
treaty or by a protective claim or treaty
notification (as applicable), limitations
prescribed by domestic law in the United
States or treaty country (see sections 13
and 14).
.05 Content and Form of MAP Request.
(1) In General. The appendix sets forth
the required contents of a MAP request,
identifies the order in which such contents
should be presented, and provides information and instructions on other administrative
matters relevant to filing the request, including requirements on translations of documents not in English. The MAP request
must comply with the requirements set forth
in the appendix before it will be considered
complete. Any questions about filing a
MAP request not addressed in this section
or in the appendix should be directed to
APMA or TAIT by one of the means identified in the appendix.
(2) MAP Requests Submitted to Foreign Competent Authority. A MAP request filed with the U.S. competent authority must include a copy of any request
filed by the taxpayer or a member of the
controlled group with a foreign competent
authority seeking assistance for the same
MAP issue. The MAP request must also
include a written explanation of the nature of any such related request, including any material differences between the
MAP request filed under this revenue
procedure and the request filed with the
foreign competent authority. See generally the appendix.
(3) Requested and Submitted Items.
The taxpayer must provide both the U.S.
and the foreign competent authority any
information or documents requested by or
submitted to either competent authority.
(4) Corrected and Updated Information. After the MAP request is filed, any
material errors or any material omissions
in the initial submission or subsequent
submissions must be promptly corrected
or remedied. Unless instructed otherwise,
the taxpayer must update information and
documents submitted in connection with
the MAP request on a schedule acceptable
to the U.S. competent authority. The taxpayer must also submit any other information or documents discovered or created
during the MAP process that are, or rea-

639

sonably may be, material to the MAP
case.
.06 Additional Requirements and Procedures Applicable to Residency and Discretionary LOB Relief Cases.
(1) Residency Cases. U.S. competent
authority assistance may be available to
dual resident taxpayers (taxpayers resident in both the United States and the
treaty country) seeking to determine their
sole residence under the treaty. In such
circumstances, the U.S. competent authority will only accept MAP requests concerning questions of residency under U.S.
tax treaties if both: (a) the resolution of
the residency issue is necessary to avoid
double taxation or to determine the applicability of a benefit under the treaty; and
(b) the issue requires consultation with the
foreign competent authority to ensure
consistent treatment under the applicable treaty. The U.S. competent authority
will not unilaterally resolve a question
of residency.
(2) Discretionary LOB Relief Cases.
(a) No Relief Where Applicant Meets
Objective Test. Most U.S. tax treaties contain an LOB article that enumerates objective tests to determine whether a foreign resident is a qualified resident of a
treaty country eligible for benefits under
the applicable U.S. tax treaty. The U.S.
competent authority will not issue a determination regarding whether an applicant
satisfies these objective LOB tests. In addition, it will not accept a request for
discretionary LOB relief if the applicant
cannot represent, and explain, as a part of
its MAP request, why it does not meet the
relevant objective tests. See section 2.01
of the appendix for the additional information applicants are required provide for
requests for discretionary LOB relief.
(b) Factors Considered. In general, if
the applicant’s case is accepted, all facts
and circumstances may be considered, including whether the applicant previously
qualified for treaty benefits and the reason
for its current disqualification. The required pre-filing memorandum will be
useful to determine what additional facts
should be included with the actual MAP
request. To obtain a favorable determination, the applicant must present facts that
demonstrate that it has a sufficient relationship or nexus to the treaty country.

December 9, 2013

(c) User Fee. Applicants requesting
discretionary LOB relief must remit the
user fee as provided in section 16 of this
revenue procedure as well as comply with
the instructions set forth in the appendix.
.07 Determinations Regarding Foreign
Pensions.
(1) In General. Several U.S. tax treaties contain provisions relating to contributions to foreign pension funds. Under
these provisions, if certain requirements
are satisfied, individuals who perform services in the United States as employees
(and in some cases as independent contractors) are allowed to deduct or exclude
contributions to a foreign pension fund in
computing U.S. taxable income. Some of
these tax treaties also allow U.S. citizens
who live and work in the treaty country to
claim deductions or exclusions for U.S.
tax purposes for contributions to a foreign
pension fund. Many of these treaties allow
U.S. employers a deduction on their U.S.
income tax returns for contributions to a
foreign pension fund on behalf of employees who perform services in the United
States.
(2) “Generally Corresponds” Determinations. The U.S. tax treaties described in
section 3.07(1) provide that benefits are
not available unless the U.S. competent
authority has determined that the foreign
pension plan “generally corresponds” to a
pension plan recognized for tax purposes
in the United States. In some cases, the
treaty negotiators or the competent authorities have agreed on lists of types of
plans in each country that are understood
to generally correspond to a plan recognized for tax purposes in the other country. In other cases, however, it will be
necessary for an employer, a plan trustee,
or an individual plan participant to request
a competent authority determination on
whether a particular plan “generally corresponds.” An employer, plan trustee, or
individual plan participant seeking such a
determination must file a MAP request
according to the instructions set forth in
the appendix.

.08 E-mail Communications. A complete MAP request must include either an
executed memorandum of understanding
permitting the U.S. competent authority to
communicate with its authorized representatives through encrypted e-mail or a
statement that the taxpayer does not permit such e-mail communications and an
explanation for its declining to do so. See
the appendix. An electronic copy of the
standard form memorandum of understanding is available on the APMA or TAIT
website [link to be included when available]. This paragraph does not apply to individuals or to taxpayers eligible to file
small case MAP requests under section 5.
SECTION 4. ACCELERATED
COMPETENT AUTHORITY
PROCEDURE
.01 In General. Under ACAP, a taxpayer may request that the terms of a
MAP resolution for a given taxable period
be extended to cover subsequent taxable
periods for which it has filed tax returns.
Alternatively, the U.S. competent authority may act of its own accord to expand
the scope of a taxpayer’s MAP case to
include ACAP years. See sections 2.08
and 2.10.
.02 ACAP Requests. An ACAP request
may be included in the MAP request or
made subsequently in writing to the U.S.
competent authority. An ACAP request
must include the information and documents required by section 3.05 for the
ACAP years. Whether set forth in the MAP
request or in a separate written request, an
ACAP request must include the taxpayer’s
waiver of its right to written notification
from the Secretary under section 7605(b) of
the Code of the need for more than one
inspection of its books of account and records for taxable years covered by the
ACAP request (see the appendix).
.03 Rejection of ACAP Requests. The
U.S. competent authority may reject an
ACAP request: (1) if it is not filed before
a MAP resolution is reached between the
U.S. and foreign competent authority; (2)

Type of Taxpayer
Corporation/Partnership
Other

December 9, 2013

if the request does not comply with the
requirements of this revenue procedure; or
(3) if acting on the request would be inconsistent with sound tax administration,
such as when the facts and circumstances
of the ACAP years materially differ from
those of the MAP years.
SECTION 5. SMALL CASE MAP
REQUESTS
.01 In General. In general, the provisions and requirements of this revenue
procedure apply no differently to small
case MAP requests than to other MAP
requests. Nevertheless, as appropriate, the
U.S. competent authority will endeavor to
minimize undue administrative burdens
on taxpayers eligible to file small case
MAP requests. For taxpayers filing MAP
requests with TAIT, requests to be exempted from certain of the MAP request
content requirements of section 3.05
should be made in advance of filing the
MAP request by filing an optional prefiling memorandum (see section 3.02) or
by contacting TAIT by one of the means
identified in section 5 of the appendix. For
taxpayers filing MAP requests with
APMA, exemptions from certain of the
MAP request content requirements are explained in section 1.04 of the appendix.
Even if it agrees to exempt the taxpayer
from including certain content in the MAP
request, the U.S. competent authority
may, subsequent to the filing of the MAP
request, require the taxpayer to submit any
or all of the information required under
section 3, as well as any other information
or documentation the U.S. competent authority determines is needed for its evaluation of the request.
.02 Dollar Thresholds. A MAP request
qualifies as a small case MAP request if
the sum of the U.S.- and foreign-initiated
adjustments does not exceed the following
dollar thresholds for all of the MAP years
combined:

Threshold of Proposed Adjustment(s)
$5,000,000
$1,000,000

640

Bulletin No. 2013–50

.03 Ineligible Requests. If a MAP request will involve: (1) a taxpayer-initiated
position; (2) discretionary LOB relief; or
(3) a foreign pension plan determination
filed by a person other than an individual
plan participant, then such a request will
not be exempt under section 5.01 from the
generally applicable filing procedures.
SECTION 6. NOTIFICATION OF
RECEIPT AND DENIAL OF
ASSISTANCE
.01 Notification of Receipt. The U.S.
competent authority will notify the taxpayer in writing that it has received the
MAP request and that the correct user fee
has been paid (if applicable). The letter
will also provide the name and contact
information of the APMA team leader,
TAIT analyst, or the members of the combined APMA-TAIT team to which the
request has been assigned. In addition, the
letter will also state either: (1) that the
request is complete and that the MAP
process will proceed, together with any
administrative or procedural steps the taxpayer must take pertaining to the MAP
request; (2) that the request is provisionally accepted but that the MAP process
will not proceed until specified deficiencies in the request have been addressed; or
(3) that the request is rejected and the
circumstances, if any, in which the request
might be accepted. The U.S. competent
authority will also instruct the taxpayer as
to other offices within the IRS to which
full or partial copies of the MAP request
must be provided.
.02 Denial of Assistance. The U.S.
competent authority may deny assistance,
in whole or in part, at any point in the
MAP process, either at the outset by rejecting the MAP request or by terminating
or suspending the MAP process after it
has accepted the MAP request. The U.S.
competent authority will generally take
such action if any of the following circumstances are present:
(1) Based on all of the facts and circumstances known to the U.S. competent
authority, providing assistance to the taxpayer would be inconsistent with the U.S.
tax treaty under which such assistance is
sought;
(2) The taxpayer has expressed that it is
willing to accept a MAP resolution only
under conditions that are unreasonable or

Bulletin No. 2013–50

prejudicial to the interests of the U.S. government, including its refusal to accept a
MAP resolution that would encompass
ACAP years when the U.S. competent
authority has determined that including
such years is in the interest of sound tax
administration;
(3) The issue on which competent authority assistance is sought is the same as
or similar to an issue considered in evaluating a prior MAP or bilateral or multilateral APA request, where the taxpayer
rejected the resulting resolution of the issue by the U.S. competent authority and
has not changed its position;
(4) The taxpayer agreed to or acquiesced in a foreign-initiated adjustment involving significant legal or factual issues
without previously having consulted the
U.S. competent authority;
(5) The taxpayer’s conduct before filing its MAP request or after the MAP
process has been initiated has significantly
impeded the ability of the IRS to adequately examine and address the MAP
issues for which assistance has been requested or the ability of the U.S. competent authority to resolve the MAP case;
(6) The subject matter of the MAP
request: (a) includes an issue pending in
litigation where a court has declined to
sever MAP issues, delay trial, or stay proceedings (see section 9.03(1)); (b) is pending in a foreign court and such proceeding
is likely to impede the conclusion or implementation of a MAP resolution; (c) includes an issue and taxable period designated for litigation (see section 9.03(1));
(d) includes an issue and taxable period
pending in a U.S. federal court that was
previously considered by IRS Appeals (see
section 9.03(1)); (e) is a listed transaction
under Treas. Reg. §§1.6011– 4(b)(2) and
301.6111–2(b)(2); (f) is a transaction of interest under Treas. Reg. §1.6011-4(b)(6); or
(g) involves fraudulent activity by the taxpayer or a member of the controlled group;
(7) The taxpayer rejected a request to
extend the period of limitations for assessment of tax for the taxable periods covered
by the MAP request and any ACAP years;
(8) The MAP issue was included in a
protest to IRS Appeals and was not properly severed from such protest and transitioned into a MAP request within 30 days
after the opening conference with IRS Appeals (see section 9.02);

641

(9) The MAP issue has been settled
pursuant to an examination resolution
without prior concurrence of the U.S.
competent authority (see section 9.01);
(10) The MAP issues covered by the
MAP request cannot be adequately resolved without the involvement of one or
more additional foreign competent authorities and either the taxpayer fails to cooperate in seeking the involvement of such
additional foreign competent authorities
or such competent authorities refuse to
participate in multilateral consultations on
the MAP case;
(11) An adequate resolution of the
MAP case would require consideration of
issues directly or indirectly involving the
taxpayer and members of the controlled
group located in non-treaty jurisdictions
and the taxpayer fails to disclose such
issues in the MAP process (such as in
diagrams required of MAP requests filed
with APMA; see the appendix); or
(12) In MAP cases involving taxpayerinitiated positions, the request evinces
after-the-fact tax planning or fiscal evasion or is otherwise inconsistent with
sound tax administration.
.03 No Review of Denial of MAP Request for Assistance. The U.S. competent
authority’s decision as to whether a MAP
request is complete or to deny, suspend, or
terminate assistance is not subject to administrative review.
SECTION 7. CONSULTATIONS AND
OTHER ACTIONS BY THE U.S.
COMPETENT AUTHORITY
.01 Non-U.S.-initiated Actions. The U.S.
competent authority will evaluate a MAP
request involving a non-U.S.-initiated action
on the basis of the justification for the action
prepared by the foreign competent authority
and on the analyses of such justification
prepared by the taxpayer and by other IRS
offices. After making its evaluation, the U.S.
competent authority will proceed in any of
several ways. In typical cases involving
foreign-initiated adjustments, it will begin
consultations with the foreign competent authority on the justification for correlative
relief and the extent to which such correlative relief is warranted. In other cases involving foreign-initiated adjustments, the
U.S. competent authority may grant correlative relief without consultations.

December 9, 2013

.02 U.S.-initiated Adjustments. The
U.S. competent authority will address a
U.S.-initiated adjustment after evaluating
the justification for the adjustment developed by IRS Examination, recommendations (if any) it has received through SAP
review, the taxpayer’s views on the adjustment it sets forth in the MAP request
or otherwise provides in the MAP process,
and the views of other IRS offices on the
adjustment. Once it has made its evaluation, the U.S. competent authority will
proceed in any of several ways. In most
cases, it will begin consultations with the
foreign competent authority on the justification for correlative relief and the extent to which such correlative relief is
warranted. In other cases, the U.S. competent authority may recommend or require that IRS Examination revise or withdraw the U.S.-initiated adjustment. If an
adjustment remains after taking into account the U.S. competent authority’s recommendations or requirements, then the
U.S. competent authority will continue to
work with IRS Examination or the foreign
competent authority as applicable.
.03 Requests for Discretionary LOB
Relief. The LOB articles of some U.S. tax
treaties require the U.S. or foreign competent authority to consult the other before
denying a request for discretionary LOB
relief. The U.S. competent authority will
comply with such consultation requirements.
.04 Taxpayer Presentations. The U.S.
competent authority will consider requests
from, and may invite or require, the taxpayer to make presentations jointly to the
U.S. and foreign competent authorities
during the MAP process. The U.S. competent authority will consult with the foreign competent authority as to its interest
in joint presentations and notify the taxpayer accordingly.
SECTION 8. SIMULTANEOUS
APPEALS PROCEDURE
.01 In General. SAP review provides
taxpayers with a direct, efficient procedure for involving IRS Appeals in the
U.S. competent authority’s evaluation of a
U.S.-initiated adjustment. It is the only
procedure by which a taxpayer may present a U.S.-initiated adjustment to IRS Appeals for its review and retain the possibility of obtaining correlative relief for the

December 9, 2013

adjustment with assistance from the U.S.
competent authority. SAP review may be
requested by the taxpayer. Alternatively,
the U.S. competent authority may, in its
discretion, initiate SAP review to obtain
the views of IRS Appeals on the MAP
issues presented in the MAP request.
.02 Requesting SAP Review. Unless the
U.S. competent authority permits otherwise in writing, the request for SAP review must be presented in the MAP request or in a separate written submission
filed no later than 60 days after the date of
the determination letter notifying the taxpayer that the U.S. competent authority
has accepted the MAP request (see section
1.03 for the rule applicable to deadlines).
Before filing its submission, a taxpayer
may request a pre-filing conference with
IRS Appeals and the U.S. competent authority to discuss SAP review. Neither
arbitration nor mediation procedures that
otherwise would be available as part of
the IRS Appeals process are available in
SAP review. See Rev. Proc. 2006 – 44,
2006 –2 C.B. 800, and Rev. Proc. 2009 –
44, 2009 –2 C.B. 462.
.03 Actions with Respect to SAP Review. The U.S. competent authority will
decide whether to accept or deny the taxpayer’s request for SAP review after consulting with IRS Appeals. If the U.S. competent authority accepts the request, it will
coordinate with IRS Appeals on process
and timeframe. In general, IRS Appeals
will conduct its review of the MAP issues
presented in the MAP request in accordance with standard IRS Appeals practice,
with the exception that the U.S. competent
authority will have the option of participating in meetings held between IRS Appeals and the taxpayer. Upon completing
its review, IRS Appeals will recommend a
U.S. position to the U.S. competent authority. If the U.S. competent authority
denies the request for SAP review, the
taxpayer may request a conference to hear
the basis for the decision.
.04 Termination of SAP Review. The
taxpayer, the U.S. competent authority, or
the Chief of IRS Appeals may terminate
SAP review at any time. Termination of
SAP review by the taxpayer will not preclude the U.S. competent authority from
obtaining the recommendation of IRS Appeals on the MAP issues set forth in the
MAP request. If SAP review is terminated

642

by the U.S. competent authority or by the
Chief of IRS Appeals, the taxpayer may
request a conference with either or both
parties to hear the basis for such determination.
SECTION 9. INTERACTION AND
COORDINATION WITH OTHER
ADMINISTRATIVE AND JUDICIAL
PROCEEDINGS
.01 Cases under the Jurisdiction of IRS
Examination.
(1) Examination Resolutions Generally. The U.S. competent authority will
accept a MAP request with respect to a
U.S.-initiated adjustment memorialized in
an examination resolution only if the U.S.
competent authority agreed, in writing, to
the terms of the examination resolution
prior to its execution. A taxpayer may
seek such agreement by filing an examination resolution notification with the
U.S. competent authority.
(2) Fast Track Settlement. In the case
of a Fast Track Settlement, the U.S. competent authority will accept a MAP request with respect to a U.S.-initiated adjustment memorialized in a Session report
only if: (a) the Fast Track agreement
named a representative of the U.S. competent authority as a “participant” in the
proceeding; and (b) the U.S. competent
authority was given a reasonable opportunity to participate in all Fast Track Settlement meetings with LB&I personnel.
(3) Action by U.S. Competent Authority. After receiving the examination resolution notification and consulting with the
taxpayer and IRS Examination as appropriate, the U.S. competent authority will
determine whether it accepts the proposed
terms. If it disagrees with the terms, it will
request that IRS Examination and the taxpayer amend them accordingly. If the
terms are initially acceptable or are
amended to its satisfaction, the U.S. competent authority will authorize the taxpayer and IRS Examination to execute the
examination resolution and will authorize
the taxpayer to file a MAP request. The
U.S. competent authority will then seek a
MAP resolution with the applicable foreign competent authority, starting from
the position in the examination resolution.
Most U.S. tax treaties will allow the U.S.
competent authority to implement a MAP
resolution reached with the foreign com-

Bulletin No. 2013–50

petent authority in such cases, even if the
terms of the MAP resolution are different
from the terms of the prior examination
resolution. A minority of U.S. tax treaties,
however, may not allow the U.S. competent authority to implement a MAP resolution that varies from the terms of the
prior examination resolution.
(4) Exclusive Jurisdiction. The U.S.
competent authority will assume sole jurisdiction over all MAP issues set forth in
a MAP request it has accepted, whether
the request is filed pursuant to the procedures set forth in this section or otherwise.
Any further administrative action by the
IRS (e.g., assessment and collection procedures) with respect to any issues under
the jurisdiction of the U.S. competent authority will be postponed unless the U.S.
competent authority instructs otherwise.
Normal administrative procedures will
continue to apply to issues over which the
U.S. competent authority has not assumed
jurisdiction.
.02 Cases Under the Jurisdiction of
IRS Appeals.
(1) In General. In light of the IRS’s
policy governing the availability and use
of SAP review, the U.S. competent authority will not accept a MAP request
regarding MAP issues that have been included in a protest filed with IRS Appeals
unless the following conditions are met:
(a) the taxpayer files its MAP request no
later than 30 days after its opening conference with IRS Appeals (see section
1.03 for the rule applicable to deadlines);
(b) the taxpayer properly severs the MAP
issues in its MAP request from the other
issues in its protest that will remain under
the jurisdiction of IRS Appeals; (c) the
taxpayer has not invoked the Appeals Arbitration Program or the Appeals Mediation Program with respect to the MAP
issues; and (d) the taxpayer has not executed a Form 870 waiver, a Form 870-AD
offer, a closing agreement, or any other
similar agreement concerning such MAP
issues. The U.S. competent authority will
assume sole jurisdiction over the MAP
issues set forth in the MAP request if
these conditions are met and if it accepts
the request. Standard IRS Appeals procedures will continue to apply to any
other issues not set forth in the MAP
request.

Bulletin No. 2013–50

(2) Right of Review by IRS Appeals if
MAP Resolution Not Reached or Not Accepted by Taxpayer. Nothing in this revenue procedure will abridge a taxpayer’s
rights to seek or continue review by IRS
Appeals of the MAP issues set forth in its
MAP request if: (a) the U.S. competent
authority rejects the request or terminates
assistance in the MAP case; (b) a MAP
resolution is not reached; or (c) the taxpayer does not accept the terms of the
MAP resolution.
.03 Cases in, or Designated for,
Litigation.
(1) In General. The U.S. competent
authority will not accept, and will terminate any ongoing consideration of, a taxpayer’s MAP request regarding any MAP
issue and taxable period designated for
litigation (see section 6.02(6)(c)), or any
MAP issue and taxable period pending in
a U.S. federal court that was previously
considered by IRS Appeals (see section
6.02(6)(d)). In other cases where litigation
is pending with respect to a taxable period
involved in a MAP request, the U.S. competent authority, after consultation with
the Associate Chief Counsel (International), may accept, or continue to consider, the MAP request. During the MAP
process, a taxpayer may be asked to join
the IRS in a motion to sever any MAP
issues, delay trial, or stay proceedings
pending the outcome of the taxpayer’s
MAP case. The Associate Chief Counsel
(International) will coordinate the filing of
any such motion on behalf of the IRS
with, as appropriate, Area Counsel, the
Department of Justice, and the taxpayer.
Final decision on severing issues, delaying trial, or staying proceedings rests with
the court. Notwithstanding the foregoing,
if the court denies a motion to sever MAP
issues, delay trial, or stay proceedings, the
U.S. competent authority will terminate
any ongoing consideration of the MAP
request (see section 6.02(6)(a)).
(2) Effect of Judicial Determinations
and Litigation Settlements. A taxpayer
may file a MAP request with respect to a
U.S. federal court’s final determination of
its tax liability. Such final determinations
include instances when taxpayers enter
into litigation settlements with the Office
of Chief Counsel or the Department of
Justice. If it accepts such a request, the

643

U.S. competent authority will seek correlative relief from the foreign competent
authority only for the amount of, and
without departing from, such final determination. In such a case, the U.S. competent authority will not authorize MAP repatriation.
SECTION 10. RESULTS OF MAP
CASE
.01 Notification. The outcome of most
MAP cases will be a MAP resolution,
which may be reached either through direct consultations with the foreign competent authority, through arbitration, or otherwise. When a tentative MAP resolution
is reached during the course of the MAP
process, the U.S. competent authority will
notify the taxpayer and outline its general
terms. Generally, a MAP resolution is not
final until it has been reviewed and approved within the office of the U.S. competent authority and until the MAP case
has been formally closed by both competent authorities. For cases resolved
through arbitration, see section 12. The
taxpayer will also be notified if the competent authorities have determined that a
MAP resolution will not be reached. In
that event, the taxpayer may withdraw its
MAP request and pursue all rights otherwise available to it (see section 10.04).
.02 Implementation. If the taxpayer accepts the terms of the MAP resolution, the
U.S. competent authority will direct the
relevant offices within the IRS to implement it accordingly. To the extent authorized under the applicable U.S. tax treaty,
the MAP resolution will be implemented
notwithstanding any time limits or other
procedural limitations under the Code and
regulations. If the taxpayer does not accept the MAP resolution, it may withdraw
its MAP request and pursue all rights otherwise available to it (see section 10.04).
.03 Closing Agreement. When appropriate, the IRS may request that the taxpayer execute a closing agreement reflecting the terms of the MAP resolution. (See
Rev. Proc. 68 –16, 1968 –1 C.B. 770 (as
modified by Rev Proc. 94 – 67, 1994 –2
C.B. 800)).
.04 Special Issues Where No MAP Resolution with Respect to Foreign-initiated
Adjustment. In any given MAP case, it is
possible that the U.S. and foreign competent authorities will not reach a MAP res-

December 9, 2013

olution despite their jointly endeavoring
in good faith to do so. If such a MAP case
involves a foreign-initiated adjustment
and arbitration is not available, the taxpayer will be notified in accordance with
section 10.01. Such notification may identify the protective measures or other steps
the taxpayer must take to establish that
amounts paid to the treaty country in connection with the foreign-initiated adjustment constitute compulsory payments of
tax within the meaning of Treas. Reg.
§1.901–2(e)(5) and to maintain its eligibility for competent authority assistance.
Such steps may include the taxpayer’s
pursuit of administrative and judicial remedies in the treaty country and, if credits
are claimed for amounts paid before the
contest is resolved, the taxpayer’s agreement to extend the U.S. statute of limitations on assessment while contesting the
foreign-initiated adjustment.
SECTION 11. MAP REPATRIATION
.01 In General. Outside the MAP context, Rev. Proc. 99 –32 prescribes specific
procedures permitting eligible U.S. taxpayers to make repatriation payments. By
following these procedures, U.S. taxpayers are able to mitigate adverse collateral
tax consequences that may otherwise result from a primary adjustment. In the
MAP context, the U.S. competent authority may determine whether to grant MAP
repatriation under the mutual agreement
procedure provision of the governing
treaty. MAP repatriation will not apply to
any repatriation payments other than those
addressed in the MAP resolution.
.02 Requirements for MAP Repatriation. MAP repatriation will be available
only if the following conditions are satisfied:
(1) no person (whether or not a “United
States taxpayer” within the meaning of
Rev. Proc. 99 –32) that will make or receive repatriation payments would be
barred from making or receiving repatriation payments under the principles of section 3.01 or 3.03 of Rev. Proc. 99 –32;
(2) the request for MAP repatriation is
explicitly set forth in the MAP request or
in a supplemental written submission filed
with the U.S. competent authority prior to
a MAP resolution being reached;
(3) the primary adjustment giving rise
to the application for MAP repatriation is

December 9, 2013

a MAP issue included in a MAP request
accepted by the U.S. competent authority;
and
(4) there has been no closing action
(within the meaning of section 5.01(1) of
Rev. Proc. 99 –32) taken on the primary
adjustment.
.03 Decision on MAP Repatriation.
The U.S. competent authority has sole jurisdiction to accept or deny a request for
MAP repatriation and the terms of such
treatment. In no event will the U.S. competent authority grant MAP repatriation if:
(1) the U.S. competent authority terminates assistance with respect to the MAP
request pursuant to section 6.02; (2) the
MAP request involves issues previously
decided in litigation (see section 9.03(2));
or (3) the taxpayer rejects the MAP resolution.
.04 Terms of MAP Repatriation. The
U.S. competent authority will determine
the terms of MAP repatriation on a caseby-case basis, taking into account both the
principles set forth in Rev. Proc. 99 –32
and its authority under the mutual agreement procedure provision of the governing treaty. Thus, for example, in a particular MAP repatriation case, the U.S.
competent authority may determine it is
appropriate to eliminate or modify the requirement for interest set forth in section
4.01(2) of Rev. Proc. 99 –32.
.05 Rights Retained in Absence of Mutual Agreement. The rights that a U.S.
taxpayer may have to apply Rev. Proc.
99 –32 in the absence of MAP repatriation
are neither abridged nor enhanced by this
section or other provisions of this revenue
procedure.
SECTION 12. ARBITRATION
.01 In General. The mutual agreement
procedure article in arbitration treaties requires that the competent authorities refer
certain MAP cases to mandatory arbitration in the event direct consultation does
not lead to a mutual agreement within a
prescribed time period. The mutual agreement procedure article in arbitration treaties sets forth detailed rules to be followed
regarding the resolution of cases that are
eligible for arbitration as prescribed by the
relevant treaty. This section addresses
general procedural issues associated with
mandatory arbitration that is undertaken
as part of the MAP process. Taxpayers

644

should consult the mutual agreement procedure article under the applicable U.S.
tax treaty and any ancillary agreements to
determine whether it is an arbitration
treaty and the extent to which mandatory
arbitration applies under such treaty.
.02 Commencement Date and the Beginning of Arbitration Proceedings. Determining the “commencement date” under an arbitration treaty is important
because arbitration begins within a specified time period, typically two years, following the commencement date. In general, the commencement date for a case is
the earliest date on which the information
necessary to undertake substantive consideration for a mutual agreement has
been received by both competent authorities. The U.S. competent authority generally takes the position that it has received
information necessary to undertake substantive consideration for a mutual agreement only when it has received a complete
MAP request as described in this revenue
procedure. The U.S. competent authority
will notify the U.S. taxpayer when the
commencement date is established.
.03 Non-disclosure Agreement. The arbitration proceedings do not begin before
the date by which both competent authorities have received properly executed nondisclosure agreements from all concerned
persons, their authorized representatives,
and their agents. The U.S. competent authority will provide the taxpayer with a
form for the non-disclosure agreement.
.04 Notification of Unsuitability for Arbitration. U.S. arbitration treaties allow
both competent authorities to agree, at any
time prior to the arbitration start date, that
a particular case is not suitable for arbitration. The U.S. competent authority will
notify the taxpayer of any such determination.
.05 Taxpayer Participation. The taxpayer may submit its analysis and views
of the case to the U.S. competent authority
to the extent permitted under the applicable U.S. tax treaty.
.06 Notification of Arbitration Panel’s
Determination. The U.S. competent authority will notify the taxpayer of the arbitration panel’s determination. If the taxpayer accepts the arbitration panel’s
determination, its terms will constitute a
MAP resolution.

Bulletin No. 2013–50

.07 Other Taxpayer Rights. If a taxpayer rejects the determination of an arbitration panel, does not accept the determination within the deadline mandated by
the applicable arbitration guidance, or has
been notified that a case has been determined not to be suitable for arbitration, it
may pursue any rights that remain available under domestic law.
SECTION 13. PROTECTIVE CLAIMS
.01 In General. Most U.S. tax treaties
provide that MAP resolutions are to be
implemented by the United States and the
treaty country notwithstanding any time
limits or other procedural limitations under domestic law. A minority of U.S. tax
treaties may not allow the U.S. competent
authority to waive such limitations. In particular cases, domestic barriers may be
waived only if a MAP request is accepted
and a MAP resolution is reached. In addition, because there are circumstances
that may not be under the control of the
taxpayer or of the U.S. or foreign competent authority, it is advisable as a general
matter for the taxpayer or a related person
to take protective measures under applicable domestic law to increase the likelihood that a MAP resolution in its MAP
case can be implemented in both treaty
countries and to protect any rights of access to alternative remedies outside of the
MAP process from being barred by administrative, legal, or procedural barriers.
This section sets forth procedures and
guidelines for taking such protective measures.
.02 Protective Claims Generally.
(1) In General. A protective claim is
made to ensure that time limits or administrative, legal, or procedural barriers under the Code or regulations are satisfied to
protect the taxpayer’s right to a potential
credit or refund in the event that a MAP
resolution is reached and to retain the taxpayer’s rights of access to any alternative
remedies available to it outside of the
MAP process under the Code or regulations. A protective claim is distinct from a
treaty notification (see section 14) and
does not affect the notification deadline
under a given treaty, even though a protective claim and treaty notification may
initially be made in the same submission
and may be updated annually in the same
notification (see section 14.05).

Bulletin No. 2013–50

(2) Timing of Protective Claims. Generally, a taxpayer should consider making
a protective claim when it has reason to
believe that any action of a tax authority
has resulted or is likely to result in a MAP
issue. However, it may be advisable to
make a protective claim at earlier times,
for example, when the claim concerns a
recurring MAP issue or when the taxpayer
is otherwise aware that an adjustment is
likely for a given taxable year. A taxpayer
may consult with the U.S. competent authority to determine when and in what
manner it is advisable to make a protective claim.
(3) IRC § 6402 Requirements. To be a
valid protective claim for credit or refund
for purposes of this revenue procedure,
the claim must be in writing and meet the
requirements of section 6402 of the Code
and the regulations thereunder other than
the requirement in Treas. Reg.
§301.6402–3 to file the claim on the appropriate form. Accordingly, a protective
claim must, at a minimum: (a) fully advise
the IRS of the grounds on which the credit
or refund is claimed; (b) contain sufficient
facts to apprise the IRS of the exact basis
of the claim; (c) describe and identify the
contingencies affecting the claim; (d) state
the year for which the claim is being
made; (e) be verified by written declaration made under penalties of perjury; and
(f) be filed before the expiration of the
applicable period of limitation to which
the claim relates.
(4) Methods for Making Protective
Claims. For purposes of this revenue procedure only, a protective claim for credit
or refund may be made in any of the
following ways: (a) including the claim in
a pre-filing memorandum; (b) including
the claim in a MAP request; or (c) filing a
letter specifically stating that a protective
claim is being made. In conjunction with
any of these methods, the taxpayer may,
but is not required to, file the form specified in Treas. Reg. §301.6402–3.
.03 Making Protective Claim in PreFiling Memorandum or MAP Request. For
the placement of a protective claim within
a MAP request, see the appendix. If the
protective claim is made in a pre-filing
memorandum, the memorandum must
contain a separate section captioned ”Protective Claim Pursuant to Section 13 of
Rev. Proc. 2014 –XX”. In that section, the

645

taxpayer must declare that it is making a
protective claim prior to filing a potential
MAP request regarding the MAP issues
set forth in the memorandum. The section
must also contain the information described in section 13.02(3). Any pre-filing
memorandum or MAP request submitted
after a protective claim is made in the
form of a letter (see section 13.04) should
refer to such letter. The U.S. competent
authority will notify the taxpayer it has
received the protective claim or that the
claim made by the taxpayer does not constitute a valid protective claim and give
instructions as to whether, and how, the
claim can be remedied to be valid.
.04 Making Protective Claim by Letter.
(1) In General. There may be situations
in which a taxpayer will be unable to
submit a pre-filing memorandum or file a
MAP request before the applicable period
of limitations expires. In such situations, a
separate protective claim in the form of a
letter should be filed. For example, a letter
would be appropriate when a foreign tax
authority is considering, but has not yet
proposed, an adjustment; a foreign tax
authority has proposed an adjustment and
administrative or judicial remedies are expected to be pursued in the treaty country
before a MAP request is filed; or the terms
of the applicable treaty require that notification of a claim be made within a certain time, independent of any action by a
tax authority.
(2) Filing of Letter. The protective
claim letter must be filed in the same place
and manner as a pre-filing memorandum
or MAP request. If a taxpayer filing a
protective claim letter is under examination by the IRS, or if an examination begins after the letter is filed, the taxpayer
must send a copy of the letter to the IRS
office conducting the examination. A template of a letter suitable for making a
protective claim is provided on the APMA
website [link to be included when available].
.05 Effect of Protective Claim. A protective claim made in the form of a letter,
a pre-filing memorandum, or a MAP request that complies with the provisions of
this revenue procedure will meet the filing
requirements for a valid claim for credit or
refund under section 6402 of the Code and
the regulations thereunder with respect to
the MAP issues set forth in the claim, so

December 9, 2013

long as it is filed before the expiration of
the applicable statutory period of limitations for filing claims for credit or refund
under the Code.
.06 Annual Notification Requirement.
After initially filing a protective claim letter or after making a protective claim in a
pre-filing memorandum and before filing
its MAP request, the taxpayer must annually notify the U.S. competent authority as
to whether it may still file a MAP request.
The annual notification must be filed no
later than the date on which the taxpayer
timely files its tax return for each taxable
year ending after the taxable year in which
it filed the protective claim (see section
1.03 for the rule applicable to deadlines).
The annual notification must: (1) be titled
“Annual Notification of Protective
Claim”; (2) reference the initial protective
claim; (3) contain a declaration that the
taxpayer is providing its annual notice of
protective claim pursuant to this section
13 and that it is requesting that its protective claim remain active; and (4) where
appropriate, update or otherwise correct
the information set forth in the protective
claim or any subsequent annual notifications. The annual notification must be
filed in the same place and manner as a
pre-filing memorandum or MAP request.
The U.S. competent authority may deny
assistance to a taxpayer that fails to provide the annual notification.
SECTION 14. TREATY
NOTIFICATIONS
.01 In General. Some U.S. tax treaties
require that the competent authority of the
country that has not received a formal
request for competent authority assistance
be notified that such a request has been
submitted to the competent authority of
the other country. If such notice is not
provided within the number of years specified in the treaty, domestic barriers to the
implementation of a MAP resolution will
not be removed (see, e.g., United StatesCanada Income Tax Convention (1980),
Article XXVI(2)). Therefore, a taxpayer
seeking assistance of the U.S. competent
authority under such a treaty with regard
to a foreign-initiated adjustment must submit a treaty notification to the U.S. competent authority within the time set forth
in the treaty.

December 9, 2013

.02 Manner of Notification. For purposes of this revenue procedure, a treaty
notification to the U.S. competent authority may be made as a part of a taxpayer’s
MAP request (see the appendix) or may
take the form of a letter to the U.S. competent authority. A template of a letter
suitable for making a treaty notification is
provided on the APMA website [link to be
included when available].
.03 Taxpayer Responsible for Notifying
Foreign Competent Authority. With regard to a U.S.-initiated adjustment under
such a treaty, the taxpayer must notify the
foreign competent authority of its having
filed a MAP request with the U.S. competent authority. In making such notification, the taxpayer should follow any applicable procedures prescribed by the
treaty country. The U.S. competent authority is not responsible for notifying a
foreign competent authority that it has received a MAP request.
.04 Annual Notification Requirement.
Treaty notification in the form of a letter
must be updated on an annual basis until a
formal MAP request has been filed. The
annual notification must be submitted no
later than the date on which the taxpayer
timely files its tax return for each taxable
year ending after the taxable year in which
it submitted the treaty notification (see
section 1.03 for the rule applicable to
deadlines). The annual update must contain the following subject line: “Treaty
Notification Annual Update under Rev.
Proc. 2014 –XX”. The annual update must
refer to prior treaty notifications.
.05 Consolidation of Protective Claim
and Treaty Notification. The taxpayer
may consolidate an initial protective claim
and a treaty notification into a single letter, pre-filing memorandum, or MAP request. A template of a letter suitable for
consolidating an initial protective claim
and treaty notification is provided on the
APMA website [link to be included when
available]. The taxpayer may also consolidate an annual protective claim notification and annual treaty notification in a
single letter. In whatever manner such initial or annual notifications are consolidated, the taxpayer should ensure that the
submission clearly states that it is to serve
as both a protective claim and as a treaty
notification.

646

SECTION 15. REQUESTS FOR
RULINGS
.01 In General. Requests for advance
rulings regarding the interpretation of a
tax treaty, as distinguished from MAP requests under this revenue procedure, must
be submitted to the Associate Chief Counsel (International) according to the provisions of the applicable revenue procedure
governing such submissions. See Rev.
Proc. 2013–1, 2013–1 I.R.B. 1 (or successor guidance), and Rev. Proc. 2013–7,
2013–1 I.R.B. 233.
.02 Foreign Tax Rulings. Neither the
U.S. competent authority nor any other
office within the IRS will issue an advance ruling on the effect of the provisions of a U.S. tax treaty on the application of the domestic tax laws of a treaty
country.
SECTION 16. USER FEES
.01 In General. Except as otherwise
provided in this section 16, no user fee is
required for a MAP request.
.02 Requests for Discretionary LOB
Relief. A $27,500 user fee is required for
all requests for discretionary LOB relief
as described in section 3.06(2). See Rev.
Proc. 2013–1 (or successor guidance).
The fee must be paid according to instructions set forth in the letter from the U.S.
competent authority to the applicant formally informing the applicant it is accepting the request. The fee will apply regardless of whether the request is for an initial
determination, a renewal of a previously
issued determination, or a supplemental
determination. If a MAP request requires
discretionary LOB relief for two or more
entities, a separate user fee will be
charged for each entity.
.03 Timing of User Fee Charge. Within
30 days of receipt of a complete submission for a request for discretionary LOB
relief, the U.S. competent authority will
notify the taxpayer whether it accepts or
rejects the request for assistance. No user
fee will be charged unless and until the
U.S. competent authority notifies the taxpayer that it formally accepts the request.
If the U.S. competent authority accepts
the request, the taxpayer must pay the
applicable user fee or fees electronically
using the Pay.gov website within 60 days
of the notification of the acceptance (see

Bulletin No. 2013–50

section 1.03 for the rule applicable to
deadlines). Upon receipt of the user fee,
the U.S. competent authority will commence analysis of the case.
.04 Refund of User Fee. The U.S. competent authority has sole discretion over
whether it will, and the circumstances under
which it may, refund a user fee. Generally,
the U.S. competent authority will not refund
a user fee: (1) once it accepts the MAP
request and the taxpayer has remitted the
user fee, even if the taxpayer subsequently
withdraws the request; (2) if the taxpayer
fails to submit additional information that
has been requested by the U.S. competent
authority; or (3) the U.S. competent authority ultimately declines to grant discretionary
LOB relief. If the U.S. competent authority
ultimately declines to grant discretionary
LOB relief, after taking into account all the
facts and circumstances, including the resources devoted to the request, the U.S.
competent authority may in its sole discretion determine that a refund is appropriate.
SECTION 17. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2006 –54, 2006 –2 C.B.
1035, is modified and superseded by this
revenue procedure. Rev. Proc. 2003– 40,
2003–1 C.B. 1044, is modified. Rev. Proc.
2014 –YY, is amplified. References in this
revenue procedure to Rev. Proc. 99 –32 will
be treated as references to Rev. Proc. 65–17,
1965–1 C.B. 833, as modified, amplified,
and clarified from time to time, for taxable
years beginning before August 24, 1999.
SECTION 18. EFFECTIVE DATE
This revenue procedure is effective for
MAP requests received on or after
[DATE].
SECTION 19. PAPERWORK
REDUCTION ACT
The collection of information contained in this revenue procedure has 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
1545–2044.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information un-

Bulletin No. 2013–50

less the collection of information displays
a valid control number.
The collection of information in this
revenue procedure is in sections 3.02(2) –
(6), 3.05, 3.08, 4.02, 5.01, 8.02, 9.01(1),
11.02(2), 13.04, 13.06, and 14.03 – 14.05
and in the appendix. This information is
required, and will be used, to evaluate and
process the request for competent authority assistance. The likely respondents are
individuals or business or other for-profit
institutions.
The estimated total annual reporting
and/or recordkeeping burden is 9,000 hours.
The estimated annual burden per respondent/recordkeeper is 30 hours. The
estimated number of respondents and/or
recordkeepers is 300.
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 section 6103 of the Code.
SECTION 20. DRAFTING
INFORMATION
The principal authors of this revenue
procedure are John Hughes, Robert Cole,
Rebecca Kalmus, and Anthony Ferrise of
the Office of the Deputy Commissioner
(International), LB&I; and Michael Skutley of the Office of the Associate Chief
Counsel (International). For further information regarding this revenue procedure,
contact either Mr. Ferrise at (202) 5154349 or Mr. Skutley at (202) 317-5440
(not toll-free calls).
APPENDIX
This appendix sets forth instructions on
preparing and filing a MAP request. Unless the U.S. competent authority has explicitly instructed the taxpayer otherwise
in writing, the MAP request must be prepared and submitted according to the instructions provided in this appendix. The
U.S. competent authority may reject a
MAP request that does not comply with
these instructions. Certain MAP request
requirements apply only to MAP requests
filed with APMA. Other MAP request re-

647

quirements apply only to MAP requests
filed with TAIT. Unless otherwise stated,
the MAP request requirements listed in
this appendix apply to MAP requests filed
with either APMA or TAIT.
A complete MAP request must include
the general MAP request items as set forth
in section 1 of this appendix and, when
applicable, the specific MAP request
items for discretionary LOB relief and
foreign pension plan determinations as set
forth in sections 2 and 3, respectively.
Instructions on filing printed and electronic copies of MAP requests are set
forth in section 4. Section 5 provides addresses and contact information.
SECTION 1. GENERAL MAP
REQUEST ITEMS
.01 Overview. General MAP request
items must be presented in a cover letter
followed by the attachments, presented in
the order listed in section 1.03 of this
appendix. The cover letter and the attachments must contain or respond to the required statements, descriptions, explanations, and other requested information. If
the requested information is not applicable to the MAP request, this must be indicated by “N/A.”
.02 MAP Request Cover Letter.
(1) Process. The cover letter must be
addressed to the Deputy Commissioner (International) at the address provided in section 5 of this appendix. An original of the
cover letter, signed and dated by a person
having authority to sign the taxpayer’s federal tax returns, must be included in one of
the three required printed copies of the
MAP request (see section 4 of this appendix). In a case involving a request for either
discretionary LOB relief or a foreign pension plan determination where the person
requesting relief does not file federal tax
returns, the cover letter may be signed and
dated by any authorized representative or
officer of such person.
(2) Content. The cover letter must contain an introductory statement that the taxpayer seeks assistance of the U.S. competent authority. The letter then must contain
or respond to each of the statements, descriptions, explanations, and other requested information listed under this section 1.02, according to the instructions
and structure set forth in this section.

December 9, 2013

Part 1. Identifying Information and Summary of Issues and Proceedings

1.1
1.2

1.3

1.4

1.5
1.6
1.7
1.8

1.9

1.10

U.S. competent authority office: State the office of the U.S. competent authority – APMA (transfer pricing) or
TAIT (non-transfer pricing) – to which the MAP request is directed
Identifying information: List the names, addresses, country of residence for purposes of the treaty, U.S. taxpayer
identification number(s), and foreign taxpayer identification number(s) (if any) of the members of the controlled
group whose taxable incomes would be affected by a MAP resolution being reached in the taxpayer’s MAP case
Authorization: List the names and contact information for the taxpayer’s point of contact for the U.S competent
authority, together with an indication as to which point of contact (if any) has been empowered by a Form 2848,
Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization (see Attachments, Tab 1)
IRS Office: Provide the following information:
a. For U.S.-initiated adjustments, the IRS office that has made the adjustment, together with the name of and contact information for the taxpayer’s IRS Examination team manager; or
b. For non-U.S.-initiated actions, the contact information for the IRS office having examination jurisdiction over the
taxpayer or U.S. members of the controlled group, together with the name of and contact information for the taxpayer’s IRS Examination team manager if the taxpayer is under examination when the MAP request is filed
Treaty(ies): Identify the U.S. tax treaty(ies) and articles under which the request is being filed
Summary of MAP issue(s): Provide a summary of the discussion in Part 2.1, setting forth the MAP issue(s) for which
assistance is being requested
Years and amounts: Provide the taxable years and amounts at issue, presented in both U.S. dollars and foreign currency,
together with the exchange rate(s) that was (were) used for currency conversion during the applicable taxable years
Taxpayer proceedings: Provide a summary of relevant U.S. and foreign judicial or administrative proceedings involving
the taxpayer or other members of the controlled group, including all information related to notifications provided to the
treaty country(ies)
Other proceedings: To the extent known, provide a summary of relevant foreign judicial or public administrative proceedings not involving the taxpayer or members of the controlled group but concerning a similar MAP issue for which
the MAP request is being filed
Statutes of limitations: Provide the expiration dates of applicable statutes of limitations in both the United States and the
treaty country(ies) for the taxable years covered by the MAP request

Part 2. MAP Issue(s)

2.1

2.2

2.3

MAP issue(s): Provide a thorough, informative explanation of the MAP issue(s) for which assistance is requested,
including, but not limited to, descriptions or discussions of the:
a. Relevant transactions, activities, or other circumstances surrounding the MAP issues for which the request is
made;
b. The taxpayer’s understanding of the legal basis for the adjustment;
c. The taxpayer’s view on the justification for assistance under the applicable U.S. tax treaty(ies); and
d. Content of any related requests for assistance submitted to the foreign competent authority, together with an
explanation of any material differences between the MAP request filed under this revenue procedure and the
request filed with the foreign competent authority
Prior U.S. competent authority assistance: State whether or not the MAP issue(s) set forth in the MAP request is
(are) the same or similar to an issue(s) considered in a prior MAP or APA request covering the same or prior taxable years, and, if so, summarize the terms of the resolution of the issue by the U.S. competent authority
Pre-filing information: Provide the following information:
a. Whether a mandatory or optional pre-filing memorandum was filed; and
b. Whether a pre-filing conference was held and, if so, the date of and attendees at the conference

December 9, 2013

648

Bulletin No. 2013–50

Part 3. Assistance Requested and Required Statements

3.1

3.2

3.3
3.4

Coordination with other proceedings: Provide the following information:
a. Whether the taxpayer seeks SAP review;
b. Whether and when the taxpayer filed an examination resolution notification pursuant to section 9.01(1) of the
revenue procedure and, if so, the date upon which the U.S. competent authority notified the taxpayer of its
agreement to the terms of such resolution; and
c. The date of any opening conference with IRS Appeals in which the MAP issue(s) in the MAP request was
(were) discussed; and the issues, if any, set forth in the taxpayer’s protest that remained within the jurisdiction
of IRS Appeals and from which the MAP issue(s) covered by the MAP request has (have) been severed
ACAP years: For MAP requests filed with APMA, provide the following information:
a. Whether the taxpayer requests ACAP and, if so, the ACAP years proposed to be covered;
b. Whether the taxpayer does not seek to apply the MAP resolution to one or more ACAP years and its reasons for not
requesting ACAP (such as the transactions at issue not having occurred in subsequent taxable years); and
c. Whether the taxpayer has filed a bilateral or multilateral APA request pursuant to Rev. Proc. 2014–YY that proposes
to cover the same issues covered by the MAP request and whether it includes a rollback request for ACAP years
Ancillary issues: List the ancillary issues (if any) the taxpayer requests be addressed in the MAP resolution
Attachments: List any required MAP request attachments that the taxpayer has not included in its MAP request, together
with explanations as to why such items are not included (e.g., “N/A”)

.03 MAP Request Attachments. The MAP request must also include the following attachments after the cover letter, separated and
ordered as indicated in this section 1.03. If an attachment in the list below is not applicable to the MAP request, the attachment should
indicate this by “N/A.”

Tab 1
Tab 2

Tab 3

Tab 4

Tab 5

Authorization form: Include a properly executed Form 2848 (Power(s) of Attorney and Declaration of Representative) or Form 8821 (Tax Information Authorization)
ACAP requests: If the taxpayer is requesting ACAP, provide a statement that the taxpayer agrees to the following:
a. The inspection of books of account or records under ACAP will not preclude or impede (under section 7605(b) of
the Code or any administrative provision adopted by the IRS) a later examination of a return or inspection of
books of account or records for any taxable period covered in the ACAP request; and
b. The IRS need not comply with any applicable procedural restrictions (e.g., providing notice under section 7605(b)
of the Code) before beginning such examination or inspection
Protective claim and treaty notification: If applicable, provide the following information:
a. A statement that the MAP request is to serve as a protective claim pursuant to section 13 of the revenue procedure,
together with the information required by section 13.02(3); and
b. A statement that the MAP request is to provide treaty notification pursuant to section 14 of the revenue procedure
Consent to disclosure: Include a declaration, dated and signed by a person having authority to sign the taxpayer’s
federal tax returns, that the taxpayer consents to the disclosure of the contents of the MAP request – other than trade
secrets, if the taxpayer so requests – to the applicable foreign competent authority(ies) within the limits contained in
the U.S. tax treaty(ies) governing the MAP request
“Penalties of perjury” declaration: Include the following “penalties of perjury” declaration:
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 facts presented in support of the MAP request are true, correct, and complete.

Tab 6

The declaration must be dated and signed by the person(s) on whose behalf the request is being made and not by
the taxpayer’s representative. The person signing for a corporate taxpayer must be an authorized officer of the
taxpayer having personal knowledge of the facts. The person signing for a trust, an estate, or a partnership must
be a trustee, an executor, or a partner, respectively, who has personal knowledge of the facts
Written notice of adjustment: Provide the following information:
a. For U.S.-initiated adjustments, a copy of the written notice of the adjustment, e.g., the Form 5701 or Form
4549, and any related attachments received from IRS Examination; or
b. For non-U.S.-initiated actions: (1) an English translation of any official notice(s) of the adjustment to taxable
income reported in the treaty country(ies) upon which the MAP request is based; and (2) a copy of the official notice(s) of such adjustment(s) in the original language

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Tab 7

Tab 8

Tab 9

Tab 10

E-mail authorization: Except for individuals or for taxpayers eligible to file small case MAP requests under section 5
of the revenue procedure, include a signed original of the memorandum of understanding authorizing communications with the U.S. competent authority via e-mail, or a statement that the taxpayer does not authorize e-mail communications, together with a brief explanation for declining to do so (see section 3.08 of the revenue procedure)
Information or documents in a foreign language: List any information or documents in a foreign language that are
submitted to a foreign tax authority or foreign competent authority in connection with, or that are otherwise relevant
to, the MAP request and for which a full translation in English is not provided
MAP requests filed with APMA: For MAP requests filed with APMA, provide the following information:
a. A copy of documentation prepared pursuant to section 6662 of the Code or other documentation analyzing the
MAP issues for the taxable years covered by the MAP request;
b. Financial data prepared for official statutory, regulatory, or other reporting purposes for the taxpayer’s controlled
group (whether corporate parent is a U.S. person or not) for all taxable years covered by the MAP request;
c. Income statements and balance sheets, segmented as necessary to demonstrate the effect of the MAP issue(s) on
taxable income for the taxpayer and the members of the controlled group for all taxable years covered by the MAP
request and, as applicable, for the three taxable years ending before and the three taxable years ending after the
years covered by the MAP request; and
d. Diagrams similar to “covered issue diagrams” required for APA requests, as described in the appendix to Rev.
Proc. 2014–YY
Pre-filing submissions: Include any pre-filing memoranda or other materials submitted in connection with the MAP
request

.04 Small Case MAP Requests Filed with APMA. Taxpayers filing small case MAP requests with APMA may exclude the
information requested in Tabs 8, 9(a), and 9(d) from their MAP requests. This section does not apply to a MAP request involving
a taxpayer-initiated position.
SECTION 2. REQUESTS FOR DISCRETIONARY LOB RELIEF
.01 In General. In addition to the requirements of section 1 of this appendix, a request for discretionary LOB relief must also
include the following information.
Part 4. Additional Information for Requests for Discretionary LOB Relief
4.1

4.2

Information necessary for identification and request review:
a. Statement about the type(s) of benefits requested (e.g., dividends, interest, royalties, branch profits, etc.) and the
relevant treaty provision(s) and amount of income at issue;
b. Date on which the applicant requests that the determination become effective; and
c. Statement as to whether the applicant made a previous request and the ultimate disposition of that request
Applicant organization information:
a. Narrative description of the business activities of the applicant’s U.S., foreign, and group holdings that describes the
ownership structure and any recent restructurings in ownership and the purposes therefor relevant to the applicant and
its ultimate owner(s), including the tax reasons for the use of any hybrid entities in the structure;
b. In the case of a country that applies a territorial or exemption system for relieving double taxation on income or gain
attributable to an office or branch in a third country, whether the applicant conducts business in the United States
through such an office or permanent establishment, and if so, the name of the country in which the office or branch
is located, the type of income or gain derived by the office or branch, and the applicable rate of tax applied to that
income in that third jurisdiction;
c. Name, address, and U.S. taxpayer identification number of U.S. entities related to the applicant from whom income
covered by the request was or will be received;
d. A chart with the name and country of tax residence or organization of every entity, along with its ownership interest
in any intermediate entity, including its entity classification under U.S. and foreign law, between the applicant and
ultimate owners of the applicant, (e.g., publicly traded corporations, pensions or other tax-exempt entities, governments, or individuals);
e. Description of the control and business relationships between the applicant and relevant persons for the years in issue,
including any changes in such relationships prior to the date of the request; and
f. Description of the relevant transactions, activities, or other circumstances involved in the matter covered by the request

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4.3

4.4

Applicant financial statement information:
a. Financial statements, if available, for the years in issue of the applicant and any U.S. branch or related entity
that paid or will pay income to the applicant during the period covered by the request; and
b. Annual reports of any publicly traded shareholder that directly or indirectly owns stock in the applicant for the
years in issue, and an English translation of any similar filings with securities regulators reflecting the structure
or transaction that is the subject of the request for the years in issue, if applicable
Additional applicant information:
a. Analysis of why the applicant does not meet each of the objective tests listed in the treaty LOB article (e.g., if
the company fails the base erosion test because it pays more than half of its gross income in the form of deductible expenses to persons not authorized by the treaty, including an explanation as to the reasons for making
payments to such persons, or if a company is engaged in the active conduct of a trade or business in its country
of residence, an explanation of what specifically prevents the company from meeting the active trade or business test in the treaty, or if the applicant’s parent was recently delisted from a recognized stock exchange and
why, or if the applicant’s parent is publicly traded on a stock exchange not recognized under the treaty);
b. Explanation of the non-tax business reasons why the applicant was formed or maintained in the particular treaty
country (e.g., that the country is the source of raw materials, the customer base is located in the country, substantial functions of the company’s business are located in the country, a substantial amount of services are performed in the country, or rents or royalties are derived from such country), and an explanation for any recent
changes in these activities;
c. Detailed description of the facts and circumstances that demonstrate that the applicant has a sufficient relationship or nexus to the treaty country;
d. Analysis of any relevant factor for determining whether to grant a request for discretionary LOB relief, as indicated, for example, by the applicable U.S. tax treaty and Treasury Department Technical Explanation to the
U.S. tax treaty;
e. Statement from the applicant as to whether any entity in the ownership chain between the applicant and the
publicly held entity (including the publicly held entity) is a nominee, agent, or otherwise a conduit, and if so,
why it is arranged in that manner;
f. English translations of all tax rulings or tax concessions issued to the applicant by the country in which it is
organized, or a statement of whether the applicant otherwise benefits from a special tax regime in that country,
and a description of the benefits;
g. If the applicant has requested a certification from its country of residence regarding entitlement to the benefits
of the treaty, where applicable, a copy of all correspondence from the treaty country;
h. Statement from the applicant whether an examination by any tax authority has been or is currently in process
that is related to the relief request;
i. Whether a request for an APA has been or is anticipated to be made with respect to the income that is covered
by the request;
j. Statement whether each entity between the applicant and the ultimate shareholders meets the base erosion test of
the treaty;
k. If the requested treaty benefits relate to dividends, a description of the capital structure of the applicant and of
the U.S. entity paying the dividends, including details about each class of shares and associated rights (e.g.,
voting, conversion, dividend rate, etc.), the period during which the structure was in effect, and any reorganizations in the United States or of the applicant abroad, including change of residence;
l. If the requested treaty benefits relate to interest, a general description of the terms of indebtedness, the method
used to calculate interest, and the existence of embedded options or other derivative structures; whether the debt
is registered or in bearer form; whether it is publicly traded and, if so, on which exchange; whether it is held by
a hedge fund or other type of investment vehicle; and whether the ultimate owners are known to the applicant;
m. If the requested treaty benefits relate to royalties, a description of the intangible property generating the royalty
payments, when the applicant gained the rights to this property, and the terms of the royalty agreement;
n. In the case of an applicant that is a hybrid entity, or that owns an interest in a hybrid entity through which it
derives income, profit, or gain with respect to which it seeks treaty benefits, a detailed explanation of why the
applicant derives the income in accordance with the relevant treaty provisions; and
o. Statement of understanding that if the request for discretionary LOB relief is accepted by the U.S. competent
authority the applicant is required to remit the user fee as provided by section 16 of the revenue procedure

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.02 Pre-filing Memorandum. The applicant must submit a pre-filing memorandum indicating whether a pre-filing conference is
requested in accordance with section 3.02(3)(f) of the revenue procedure.
SECTION 3. “GENERALLY CORRESPONDS” PENSION DETERMINATIONS
In addition to the requirements of section 1 of this appendix, a request seeking a determination that a foreign pension plan generally corresponds
to a pension plan recognized for tax purposes in the United States must also include the following information:
Part 5. Additional Information for Requests for “Generally Corresponds” Pension Determinations

5.1

5.2
5.3
5.4

Copies of the Plan Documents (translated into English). For this purpose, the Plan Documents include the plan
itself, the trust agreement, the summary plan description or similar document provided to participants, and any
other document that will assist the U.S. competent authority in making its determination.
If the plan at issue relates to another plan of the employer, copies of the Plan Documents (as defined above) for
that other plan (translated into English)
Copies of all applicable statutory provisions that govern the foreign pension plan (translated into English)
An explanation of why the foreign pension plan should be deemed to “generally correspond” to a pension plan
recognized for tax purposes in the United States.

SECTION 4. MANNER OF FILING MAP REQUESTS
.01 In General. The taxpayer must provide four copies of its MAP request as follows: one (1) original, bound printed submission
containing signed originals of the cover letter, “penalties of perjury” declaration, consent to disclosure, and, as applicable,
authorization forms, including e-mail authorization, along with printed copies of all other required information; two (2) bound
photocopies of the contents of the original printed submission; and one (1) electronic copy of the contents of the original printed
submission on CD or flash drive or similar acceptable electronic storage medium. All four (4) copies of the MAP request must be
filed with the U.S. competent authority at the address set forth in section 5 of this appendix.
.02 Exemptions for Small Case Filings with TAIT. Unless otherwise instructed by the U.S. competent authority, taxpayers filing
small case MAP requests with TAIT are only required to file a single printed copy of the request. Also, such taxpayers may, but are
not required to, file an electronic copy of the MAP request.
.03 Format of Printed Copies. Each printed copy may be filed in one or more bound volumes. The attachments must be tabbed
or separated and identified and ordered as presented in section 1 of this appendix. If an attachment is not applicable to the MAP
request, a statement to this effect must be included in the relevant tabbed section.
.04 Content and Format of Electronic Copy.
(1) Content. The electronic copy of the MAP request must contain: (1) the cover letter to the MAP request, with all required
statements, declarations, explanations, documents, information, data, and all other requested materials; and (2) all required
attachments. The attachments should consist of separate electronic files named in a manner that corresponds to the tab numbers
presented in section 1 of this appendix. If an attachment is not applicable to the MAP request, a statement to this effect must be
included in the electronic file.
(2) Format. Suitable formats for the documents in the electronic copy include Microsoft Word, Excel, PowerPoint, and Adobe
Portable Document Format. Any document that is readily available in Microsoft Word, Excel, or PowerPoint format should be
provided in that format rather than, or in addition to, Adobe Portable Document format.
SECTION 5. ADDRESSES AND CONTACT INFORMATION
.01 APMA Contact Information.
Telephone number:
Mailing address:

December 9, 2013

TBD
Deputy Commissioner (International)
Large Business and International Division
Internal Revenue Service
1111 Constitution Avenue, N.W.
Routing: M3-370
Washington, D.C. 20224
(Attention: APMA)

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All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS,
FedEx, UPS, or any other carrier.
Website:
Office location:

[link to be included when available]
801 Ninth Street, N.W., Washington, D.C. 20001.
Mail should not be sent to this address.

.02 TAIT Contact Information.

Telephone number:
Mailing address:

TBD
Deputy Commissioner (International)
Large Business and International Division
Internal Revenue Service
1111 Constitution Avenue, N.W.
Routing: M4-365
Washington, D.C. 20224
(Attention: TAIT)
All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS,
FedEx, UPS, or any other carrier.

Website:
Office location:

Proposed Revision of
Procedures for Advance
Pricing Agreements
Notice 2013–79
PURPOSE
This notice proposes a revenue procedure that would update and supersede
Rev. Proc. 2006 –9, 2006 –1 C.B. 278, as
modified by Rev. Proc. 2008 –31, 2008 –1

Bulletin No. 2013–50

[link to be included when available]
801 Ninth Street, N.W., Washington, D.C. 20001.
Mail should not be sent to this address.

C.B. 1133, which is also superseded. The
proposed revenue procedure would provide guidance and instructions on APAs
and guidance and information on the
IRS’s administration of APAs.
The proposed revenue procedure
would substantially restate Rev. Proc.
2006-9 to improve clarity, readability, and
organization. The proposed revenue procedure also would reflect structural
changes undertaken by the IRS since
2006, including the establishment of the

653

Large Business & International Division,
the realignment and consolidation of IRS
transfer pricing resources under the Director, Transfer Pricing Operations, and the
creation of the Advance Pricing and Mutual Agreement Program, the office responsible for evaluating, executing, and
administering APAs on behalf of the IRS.
Additionally, the proposed revenue
procedure would effect a limited number
of significant substantive changes. These
changes may be summarized as follows:

December 9, 2013