Revenue Procedure 2017-1

Revenue Procedure 2017-1 (IRB 17-01).pdf

Revenue Procedure 2017-52, 2017-1, 2017-3 Rulings and determination letters

Revenue Procedure 2017-1

OMB: 1545-1522

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

Rev. Proc. 2017–1
TABLE OF CONTENTS
SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE? ...............................................................................................6

.01 Description of terms used in this revenue procedure ............................................................................................................7
.02 Updated annually .....................................................................................................................................................................8
SECTION 2. WHAT ARE THE FORMS IN WHICH THE SERVICE PROVIDES ADVICE TO TAXPAYERS? .....................................8

.01
.02
.03
.04
.05

Letter ruling .............................................................................................................................................................................8
Closing agreement ...................................................................................................................................................................8
Determination letter .................................................................................................................................................................8
Information letter .....................................................................................................................................................................9
Oral advice...............................................................................................................................................................................9
(1) No oral rulings and no written rulings in response to oral requests...............................................................................9
(2) Discussion possible on substantive issues ........................................................................................................................9
(3) Oral guidance is advisory only, and the Service is not bound by it.............................................................................10

SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN ADVICE UNDER THIS
REVENUE PROCEDURE?................................................................................................................................................................10

.01
.02
.03
.04
.05
.06
.07

Issues
Issues
Issues
Issues
Issues
Issues
Issues

under
under
under
under
under
under
under

the
the
the
the
the
the
the

jurisdiction
jurisdiction
jurisdiction
jurisdiction
jurisdiction
jurisdiction
jurisdiction

of
of
of
of
of
of
of

the
the
the
the
the
the
the

Associate
Associate
Associate
Associate
Associate
Associate
Associate

Chief
Chief
Chief
Chief
Chief
Chief
Chief

Counsel
Counsel
Counsel
Counsel
Counsel
Counsel
Counsel

(Corporate) .........................................................................10
(Financial Institutions and Products).................................10
(Income Tax and Accounting)...........................................10
(International).....................................................................11
(Passthroughs and Special Industries)...............................11
(Procedure and Administration) ........................................11
(Tax Exempt and Government Entities) ...........................11

SECTION 4. ON WHAT ISSUES MUST WRITTEN ADVICE BE REQUESTED UNDER DIFFERENT PROCEDURES?...................12

.01 Issues involving alcohol, tobacco, and ﬁrearms taxes .........................................................................................................12
.02 Certain issues involving employee plans, individual retirement accounts (IRAs), and exempt organizations .................12
SECTION 5. UNDER WHAT CIRCUMSTANCES DO THE ASSOCIATE OFFICES ISSUE LETTER RULINGS?...............................12

.01 In income and gift tax matters..............................................................................................................................................12
.02 Special relief for late S corporation and related elections in lieu of letter ruling process.................................................12
.03 A § 301.9100 request for extension of time for making an election or for other relief ....................................................13
(1) Format of request ............................................................................................................................................................13
(2) Period of limitation..........................................................................................................................................................13
(3) Taxpayer must notify the Associate ofﬁce if examination of its return begins while the request is pending ............13
(4) Associate ofﬁce will notify the examination agent, appeals ofﬁcer, or attorney of a § 301.9100 request if the
taxpayer’s return is being examined by a Field ofﬁce or is being considered by an Appeals ofﬁce or a Federal court................13
(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009 – 41 .....................................................................14
(6) Relief for late initial classiﬁcation election....................................................................................................................14
.04 Determinations under § 999(d) .............................................................................................................................................14
.05 In matters involving § 367....................................................................................................................................................14
.06 In estate tax matters ..............................................................................................................................................................14
.07 In matters involving additional estate tax under § 2032A(c) ..............................................................................................15
.08 In matters involving qualiﬁed domestic trusts under § 2056A ...........................................................................................15
.09 In generation-skipping transfer tax matters ..........................................................................................................................15
.10 In employment and excise tax matters .................................................................................................................................15
.11 In procedural and administrative matters .............................................................................................................................15

Bulletin No. 2017–1

January 3, 2017

.12 In Indian tribal government matters .....................................................................................................................................16
(1) Deﬁnition of Indian tribal government...........................................................................................................................16
(2) Inclusion in list of tribal governments............................................................................................................................16
.13 On constructive sales price under§ 4216(b) or § 4218(c) ...................................................................................................16
.14 In exempt organizations matters ...........................................................................................................................................16
.15 In qualiﬁed retirement plan and IRA matters ......................................................................................................................17
.16 A request to revoke an election ............................................................................................................................................17
.17 Under some circumstances before the issuance of a regulation or other published guidance ...........................................17
(1) Answer is clear or is reasonably certain ........................................................................................................................17
(2) Answer is not reasonably certain....................................................................................................................................18
SECTION 6. UNDER WHAT CIRCUMSTANCES DOES THE SERVICE NOT ISSUE
LETTER RULINGS OR DETERMINATION LETTERS?...........................................................................................................18

.01
.02
.03
.04
.05
.06
.07
.08
.09
.10
.11
.12
.13
.14

Ordinarily not if the request involves an issue under examination or consideration or in litigation ................................18
Ordinarily not in certain areas because of factual nature of the problem or for other reasons .........................................18
Ordinarily not on part of an integrated transaction..............................................................................................................19
Ordinarily not on which of two entities is a common law employer .................................................................................20
Ordinarily not to business associations or groups................................................................................................................20
Ordinarily not where the request does not address the tax status, liability, or reporting obligations of the requester ...............20
Ordinarily not to foreign governments .................................................................................................................................20
Ordinarily not on Federal tax consequences of proposed legislation..................................................................................20
Ordinarily not before issuance of a regulation or other published guidance......................................................................21
Not on frivolous issues..........................................................................................................................................................21
No “comfort” letter rulings ...................................................................................................................................................22
Not on alternative plans or hypothetical situations..............................................................................................................22
Not on property conversions after return ﬁled .....................................................................................................................22
Circumstances under which determination letters are not issued by a Director.................................................................22

SECTION 7. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS? .............................................................................................................................................22

.01 Documents and information required in all requests ...........................................................................................................23
(1) Complete statement of facts and other information .......................................................................................................23
(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents pertinent to the transaction,
and foreign laws...............................................................................................................................................................23
(3) Analysis of material facts ................................................................................................................................................24
(4) Statement regarding whether same issue is in an earlier return and additional
information required for § 301.9100 requests ................................................................................................................24
(5) Statement regarding whether same or similar issue was previously
ruled on or whether a request involving it was submitted or is currently pending ......................................................25
(6) Statement regarding interpretation of a substantive provision of an income or estate tax treaty ................................25
(7) Letter from Bureau of Indian Affairs relating to a letter ruling request for recognition of Indian
tribal government status or status as a political subdivision of an Indian tribal government. .....................................26
(8) Statement of supporting authorities.................................................................................................................................26
(9) Statement of contrary authorities ....................................................................................................................................26
(10) Statement identifying pending legislation.....................................................................................................................26
(11) Statement identifying information to be deleted from the public inspection copy of letter ruling
or determination letter ...................................................................................................................................................27
(12) Signature by taxpayer or authorized representative .....................................................................................................28
(13) Authorized representatives.............................................................................................................................................28
(14) Power of attorney and declaration of representative ....................................................................................................30
(15) Penalties of perjury statement .......................................................................................................................................30
(16) Number of copies of request to be submitted ..............................................................................................................31
(17) Sample format for a letter ruling request .....................................................................................................................31
(18) Checklist for letter ruling requests ................................................................................................................................31

January 3, 2017

Bulletin No. 2017–1

.02 Additional procedural information required with request..............................................................................................32
(1) To request separate letter rulings for multiple issues in a single situation.............................................................32
(2) Power of attorney used to indicate recipient of a copy or copies
of a letter ruling or a determination letter................................................................................................................32
(3) To request a particular conclusion on a proposed transaction ................................................................................32
(4) To request expedited handling ..................................................................................................................................33
(5) To request the receipt of any document related to letter ruling request by fax .....................................................34
(6) To request a conference ............................................................................................................................................34
.03 Additional information required in letter ruling requests involving welfare beneﬁt funds (including voluntary
employees’ beneﬁciary associations (VEBAs))..............................................................................................................34
(1) Request for letter rulings on the tax consequences of a proposed transaction involving a welfare beneﬁt fund ..........34
(2) Code sections to consider..........................................................................................................................................34
.04 Address to which to send request for letter ruling or determination letter...................................................................35
(1) Request for letter ruling ............................................................................................................................................35
(2) Request for determination letter................................................................................................................................36
.05 Pending letter ruling requests..........................................................................................................................................36
(1) Circumstances under which the taxpayer with a pending letter ruling request must notify the Associate ofﬁce..........36
(2) Taxpayer must notify the Associate ofﬁce if a return is ﬁled and must attach the request to the return .............37
.06 When to attach letter ruling or determination letter to return .......................................................................................37
.07 How to check on status of request for letter ruling or determination letter .................................................................37
.08 Request for letter ruling or determination letter may be withdrawn or Associate ofﬁce may decline to issue letter ruling ..........37
(1) In general ...................................................................................................................................................................37
(2) Notiﬁcation of appropriate Service ofﬁcial ..............................................................................................................38
(3) Refund of user fee.....................................................................................................................................................38
SECTION 8. HOW DO THE ASSOCIATE OFFICES HANDLE LETTER RULING REQUESTS?........................38
.01 Docket, Records, and User Fee Branch receives, initially controls, and refers the requests
to the appropriate Associate ofﬁce .................................................................................................................................38
.02 Branch representative of the Associate ofﬁce contacts taxpayer within 21 calendar days ..........................................38
.03 Determines if transaction can be modiﬁed to obtain favorable letter ruling ................................................................39
.04 Not bound by informal opinion expressed .....................................................................................................................39
.05 May request additional information................................................................................................................................39
(1) Additional information must be submitted within 21 calendar days ......................................................................39
(2) Extension of reply period if justiﬁed and approved ................................................................................................40
(3) Letter ruling request closed if the taxpayer does not submit additional information.............................................40
(4) Penalties of perjury statement...................................................................................................................................40
(5) Faxing request and additional information...............................................................................................................40
(6) Address to which to send additional information ....................................................................................................40
(7) Identifying information..............................................................................................................................................41
(8) Number of copies ......................................................................................................................................................41
.06 Near the completion of the ruling process, advises the taxpayer of conclusions and, if the
Associate ofﬁces will rule adversely, offers the taxpayer the opportunity to withdraw the letter ruling request.................41
.07 May request that taxpayer submit draft proposed letter ruling near the completion of the ruling process.................41
.08 Issues separate letter rulings for substantially identical letter rulings, but generally issues a single letter
ruling for related § 301.9100 letter rulings ....................................................................................................................42
(1) Substantially identical letter rulings..........................................................................................................................42
(2) Related § 301.9100 letter rulings..............................................................................................................................42
.09 Sends a copy of the letter ruling to appropriate Service ofﬁcial...................................................................................42
SECTION 9. WHAT ARE THE SPECIFIC AND ADDITIONAL PROCEDURES FOR A REQUEST FOR A
CHANGE IN METHOD OF ACCOUNTING FROM THE ASSOCIATE OFFICES? .........................42
.01 Automatic and non-automatic change in method of accounting requests.....................................................................42
(1) Automatic change in method of accounting.............................................................................................................43
(2) Non-automatic change in method of accounting......................................................................................................43

Bulletin No. 2017–1

January 3, 2017

.02 Ordinarily only one change in method of accounting on a Form 3115, Application for Change in Accounting
Method, and a separate Form 3115 for each taxpayer and for each separate and distinct trade or business .............43
.03 Information required with a Form 3115 .........................................................................................................................43
(1) Facts and other information requested on Form 3115 and in applicable revenue procedures...............................43
(2) Statement of contrary authorities ..............................................................................................................................44
(3) Copies of all contracts, agreements, and other documents......................................................................................44
(4) Analysis of material facts..........................................................................................................................................44
(5) Information regarding whether same issue is in an earlier return...........................................................................45
(6) Statement regarding prior requests for a change in method of accounting and other pending requests ...............45
(7) Statement identifying pending legislation ................................................................................................................45
(8) Authorized representatives ........................................................................................................................................45
(9) Power of attorney and declaration of representative................................................................................................45
(10) Tax Information Authorization ...............................................................................................................................46
(11) Penalties of perjury statement.................................................................................................................................46
.04 Additional procedural information required in certain circumstances...........................................................................46
(1) Recipients of original and copy of change in method of accounting correspondence...........................................46
(2) To request expedited handling ..................................................................................................................................46
(3) To receive the change in method of accounting letter ruling or any other correspondence
related to Form 3115 by fax .....................................................................................................................................47
(4) To request a confered................................................................................................................................................47
.05 Addresses to which to send Forms 3115........................................................................................................................47
(1) Non-automatic Form 3115 ........................................................................................................................................47
(2) Automatic change request .........................................................................................................................................48
.06 A Form 3115 must not be submitted by fax..................................................................................................................48
.07 Docket, Records, and User Fee Branch receives, initially controls, and refers the
Form 3115 to the appropriate Associate ofﬁce ..............................................................................................................48
.08 Additional information ....................................................................................................................................................48
(1) Reply period. .............................................................................................................................................................48
(2) Request for extension of reply period. .....................................................................................................................49
(3) Penalties of perjury statement for additional information .......................................................................................49
(4) Identifying information included in additional information ....................................................................................49
(5) Faxing information request and additional information...........................................................................................49
(6) Address to which to send additional information to an Associate ofﬁce ...............................................................49
(7) Failure to timely submit additional information to an Associate ofﬁce..................................................................50
.09 Circumstances in which the taxpayer must notify the Associate ofﬁce........................................................................51
.10 Determines if proposed method of accounting can be modiﬁed to obtain favorable letter ruling ..............................51
.11 Near the completion of processing the Form 3115, advises the taxpayer if the Associate
ofﬁce will rule adversely and offers the taxpayer the opportunity to withdraw Form 3115 .......................................51
.12 Non-automatic Form 3115 may be withdrawn or Associate ofﬁce may decline to issue
a change in method of accounting letter ruling .............................................................................................................51
(1) In general ...................................................................................................................................................................51
(2) Notiﬁcation of appropriate Service ofﬁcial. .............................................................................................................51
(3) Refund of user fee.....................................................................................................................................................52
.13 How to check status of a pending non-automatic Form 3115 ......................................................................................52
.14 Service is not bound by informal opinion......................................................................................................................52
.15 Single letter ruling issued to a taxpayer or consolidated group for qualifying identical change
in method of accounting..................................................................................................................................................52
.16 Letter ruling ordinarily not issued for one of two or more interrelated items or submethods ....................................52
.17 Consent Agreement .........................................................................................................................................................52
.18 A copy of the change in method of accounting letter ruling is sent to appropriate Service ofﬁcial...........................53
.19 Consent to change a method of accounting may be relied on subject to limitations...................................................53
.20 Change in method of accounting letter ruling does not apply to another taxpayer .....................................................53
.21 Associate ofﬁce discretion to permit requested change in method of accounting........................................................53

January 3, 2017

Bulletin No. 2017–1

.22 List of automatic change in method of accounting request procedures........................................................................54
.23 Other sections of this revenue procedure that are applicable to Form 3115 ................................................................55
SECTION 10. HOW ARE CONFERENCES FOR LETTER RULINGS SCHEDULED?............................................57
.01 Schedules a conference if requested by taxpayer ..........................................................................................................57
.02 Permits taxpayer one conference of right.......................................................................................................................57
.03 Disallows verbatim recording of conferences ................................................................................................................57
.04 Makes tentative recommendations on substantive issues ..............................................................................................57
.05 May offer additional conferences ...................................................................................................................................58
.06 Requires written conﬁrmation of information presented at conference ........................................................................58
.07 May schedule a pre-submission conference ...................................................................................................................58
(1) Taxpayer may request a pre-submission conference in writing or by telephone ...................................................58
(2) Pre-submission conference held in person or by telephone ....................................................................................59
(3) Certain information required to be submitted to the Associate ofﬁce prior to the pre-submission conference .............59
(4) Discussion of substantive issues not binding on the Service ..................................................................................59
.08 May schedule a conference to be held by telephone .....................................................................................................60
SECTION 11. WHAT EFFECT WILL A LETTER RULING HAVE? ..........................................................................60
.01 May be relied on subject to limitations..........................................................................................................................60
.02 Will not apply to another taxpayer .................................................................................................................................60
.03 Will be used by a Field ofﬁce in examining the taxpayer’s return...............................................................................60
.04 May be revoked or modiﬁed if found to be in error or there has been a change in law ............................................60
.05 Letter ruling revoked or modiﬁed based on material change in facts applied retroactively........................................61
.06 Not otherwise generally revoked or modiﬁed retroactively ..........................................................................................61
.07 Retroactive effect of revocation or modiﬁcation applied to a particular transaction ...................................................62
.08 Retroactive effect of revocation or modiﬁcation applied to a continuing action or series of actions .........................62
.09 Generally not retroactively revoked or modiﬁed if related to sale or lease subject to excise tax...............................63
.10 May be retroactively revoked or modiﬁed when transaction is entered into before the issuance of the letter ruling .........63
.11 Taxpayer may request that retroactivity be limited .......................................................................................................63
(1) Request for relief under § 7805(b) must be made in required format....................................................................63
(2) Taxpayer may request a conference on application of § 7805(b)...........................................................................64
SECTION 12. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS?.........64
.01 In income and gift tax matters........................................................................................................................................64
.02 In estate tax matters ........................................................................................................................................................64
.03 In generation-skipping transfer tax matters ....................................................................................................................64
.04 In employment and excise tax matters ...........................................................................................................................65
.05 Requests concerning income, estate, or gift tax returns ................................................................................................65
.06 Review of determination letters ......................................................................................................................................65
SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE? .......................................................65
.01 Has same effect as a letter ruling ...................................................................................................................................65
.02 Taxpayer may request that retroactive effect of revocation or modiﬁcation be limited ..............................................66
(1) Request for relief under § 7805(b) must be made in required format....................................................................66
(2) Taxpayer may request a conference on application of § 7805(b)...........................................................................66
SECTION 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN A DIRECTOR
AND AN ASSOCIATE OFFICE?................................................................................................................66
.01 Requests for determination letters ..................................................................................................................................66
.02 No-rule areas....................................................................................................................................................................67
.03 Requests for letter rulings ...............................................................................................................................................67
.04 Letter ruling request mistakenly sent to a Director .......................................................................................................67
SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER
RULINGS AND DETERMINATION LETTERS?....................................................................................67
.01 Legislation authorizing user fees ....................................................................................................................................67

Bulletin No. 2017–1

January 3, 2017

.02
.03
.04
.05
.06

.07

.08
.09
.10
.11

Requests to which a user fee applies..............................................................................................................................67
Requests to which a user fee does not apply .................................................................................................................68
Exemptions from the user fee requirements...................................................................................................................68
Fee schedule ....................................................................................................................................................................69
Applicable user fee for a request involving multiple ofﬁces, fee categories, issues, transactions, or entities............69
(1) Requests involving several ofﬁces............................................................................................................................69
(2) Requests involving several fee categories ................................................................................................................69
(3) Requests involving several issues.............................................................................................................................69
(4) Requests involving several unrelated transactions ...................................................................................................69
(5) Requests involving several entities...........................................................................................................................69
(6) Requests made by married taxpayers who ﬁle jointly.............................................................................................69
Applicable user fee for requests for substantially identical letter rulings or identical changes in method of accounting........70
(1) In general ...................................................................................................................................................................70
(2) Substantially identical letter rulings..........................................................................................................................70
(3) Substantially identical plans under § 25(c)(2)(B) ....................................................................................................71
(4) Identical changes in method of accounting and related § 301.9100 letter rulings .................................................71
Method of payment .........................................................................................................................................................72
Effect of nonpayment or payment of incorrect amount.................................................................................................72
Refunds of user fee .........................................................................................................................................................73
Request for reconsideration of user fee..........................................................................................................................74

SECTION 16. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2016 –1? ...........75
SECTION 17. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?........76
SECTION 18. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE?.......................................76
SECTION 19. PAPERWORK REDUCTION ACT ............................................................................................................76
DRAFTING INFORMATION ...............................................................................................................................................76
INDEX .......................................................................................................................................................................................78
APPENDIX A—SCHEDULE OF USER FEES...................................................................................................................81
APPENDIX B—SAMPLE FORMAT FOR A LETTER RULING REQUEST ..............................................................86
APPENDIX C—CHECKLIST FOR A LETTER RULING REQUEST ..........................................................................89
APPENDIX D—ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLAN RULING REQUESTS............93
APPENDIX E—ADDITIONAL CHECKLIST FOR CHURCH PLAN RULING REQUESTS ...................................94
APPENDIX F—LIST OF SMALL BUSINESS/SELF-EMPLOYED OPERATING DIVISION (SB/SE)
OFFICES TO WHICH TO SEND REQUESTS FOR DETERMINATION LETTERS ...................95
APPENDIX G—CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR
REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES ............96
.01 Checklists, guideline revenue procedures, and notices ..................................................................................................96
.02 Safe harbor revenue procedures....................................................................................................................................101
.03 Automatic change in accounting period revenue procedures ......................................................................................105
SECTION 1. WHAT IS
THE PURPOSE OF THIS
REVENUE
PROCEDURE?

Sec. 1.
January 3, 2017

This revenue procedure explains how the Service provides advice to taxpayers on issues under
the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the
Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special
Industries), the Associate Chief Counsel (Procedure and Administration), and the Associate Chief
Counsel (Tax Exempt and Government Entities). It explains the forms of advice and the manner
in which advice is requested by taxpayers and provided by the Service. A sample format for a
letter ruling request is provided in Appendix B. See section 4 of this revenue procedure for

Bulletin No. 2017–1

information on certain issues outside the scope of this revenue procedure on which advice may
be requested under a different revenue procedure.
Description of terms used
in this revenue procedure

.01 For purposes of this revenue procedure—
(1) the term “Service” includes the four operating divisions of the Internal Revenue Service and
the Associate ofﬁces. The four operating divisions are:
(a) Large Business & International Division (LB&I), which generally serves corporations,
including S corporations, and partnerships, with assets in excess of $10 million;
(b) Small Business/Self-Employed Division (SB/SE), which generally serves corporations,
including S corporations, and partnerships, with assets less than or equal to $10 million; ﬁlers of
gift, estate, excise, employment and ﬁduciary returns; individuals ﬁling an individual Federal
income tax return with accompanying Schedule C (Proﬁt or Loss From Business (Sole Proprietorship)), Schedule E (Supplemental Income and Loss), Schedule F (Proﬁt or Loss From
Farming), Form 2106, Employee Business Expenses, or Form 2106 –EZ, Unreimbursed Employee
Business Expenses;
(c) Wage and Investment Division (W&I), which generally serves individuals with wage and
investment income only (and with no international tax returns) ﬁling an individual Federal income
tax return without accompanying Schedule C, E, or F, or Form 2106 or Form 2106 –EZ; and
(d) Tax Exempt and Government Entities Division (TE/GE), which serves three distinct
taxpayer segments: employee plans (including IRAs), exempt organizations, and government
entities.
(2) the term “Associate ofﬁce” refers to the Ofﬁce of Associate Chief Counsel (Corporate), the
Ofﬁce of Associate Chief Counsel (Financial Institutions and Products), the Ofﬁce of Associate
Chief Counsel (Income Tax and Accounting), the Ofﬁce of Associate Chief Counsel (International), the Ofﬁce of Associate Chief Counsel (Passthroughs and Special Industries), the Ofﬁce
of Associate Chief Counsel (Procedure and Administration), or the Ofﬁce of Associate Chief
Counsel (Tax Exempt and Government Entities), as appropriate.
(3) the term “Director” refers to the Director, Field Operations, LB&I; Director, Field
Examination, SB/SE; Director, Specialty Examination Policy, SB/SE; Program Manager,
Estate & Gift Tax Policy, SB/SE; Program Manager, Employment Tax Policy, SB/SE;
Program Manager, Excise Tax Policy, SB/SE; Director, Compliance, W&I; Director, Employee Plans; Director, Employee Plans, Rulings and Agreements; Director, Employee Plans
Examinations; Director, Exempt Organizations; Director, Exempt Organizations, Rulings and
Agreements; Director, Exempt Organizations Examinations; Director, Federal, State & Local
Governments; Director, Tax Exempt Bonds; or Director, Indian Tribal Governments, as
appropriate.
(4) the term “Field ofﬁce” refers to the respective ofﬁces of the Directors, as appropriate.
(5) the term “taxpayer” includes all persons subject to any provision of the Internal Revenue
Code and, when appropriate, their representatives. More speciﬁcally, the term includes taxexempt organizations, as well as issuers of tax-exempt obligations, mortgage credit certiﬁcates,
and tax credit bonds.

Bulletin No. 2017–1

Sec. 1.
January 3, 2017

Updated annually

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

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

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

Letter ruling

.01 A “letter ruling” is a written determination issued to a taxpayer by an Associate ofﬁce in
response to the taxpayer’s written inquiry, ﬁled prior to the ﬁling of returns or reports that are
required by the tax laws, about its status for tax purposes or the tax effects of its acts or
transactions. A letter ruling interprets the tax laws and applies them to the taxpayer’s speciﬁc set
of facts. A letter ruling is issued when appropriate in the interest of sound tax administration. One
type of letter ruling is an Associate ofﬁce’s response granting or denying a request for a change
in a taxpayer’s method of accounting or accounting period. Once issued, a letter ruling may be
revoked or modiﬁed for a number of reasons. See section 11 of this revenue procedure. A letter
ruling may be issued with a closing agreement, however, and a closing agreement is ﬁnal unless
fraud, malfeasance, or misrepresentation of a material fact can be shown. See section 2.02 of this
revenue procedure.
Letter rulings are subject to exchange of information under U.S. tax treaties or tax information
exchange agreements in accordance with the terms of such treaties and agreements (including
terms regarding relevancy, conﬁdentiality, and the protection of trade secrets.)

Closing agreement

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

Determination letter

Sec. 1.02
January 3, 2017

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

Bulletin No. 2017–1

Information letter

.04 An “information letter” is a statement issued by an Associate ofﬁce or Director that calls
attention to a well-established interpretation or principle of tax law (including a tax treaty)
without applying it to a speciﬁc set of facts. An information letter may be issued if the taxpayer’s
inquiry indicates a need for general information or if the taxpayer’s request does not meet the
requirements of this revenue procedure and the Service concludes that general information will
help the taxpayer. An information letter is advisory only and has no binding effect on the Service.
If the Associate ofﬁce issues an information letter in response to a request for a letter ruling that
does not meet the requirements of this revenue procedure, the information letter is not a substitute
for a letter ruling. The taxpayer should provide a daytime telephone number with the taxpayer’s
request for an information letter.
Information letters that are issued by the Associate ofﬁces to members of the public are made
available to the public. Information letters that are issued by the Field ofﬁces are generally not
made available to the public.
Because information letters do not constitute written determinations as deﬁned in § 6110, they
are not subject to public inspection under § 6110. The Service makes the information letters
available to the public under the Freedom of Information Act (the “FOIA”). Before any
information letter is made available to the public, an Associate ofﬁce will redact any information
exempt from disclosure under the FOIA. See, e.g., 5 U.S.C. § 552(b)(6) (exemption for information the disclosure of which would constitute a clearly unwarranted invasion of personal
privacy); 5 U.S.C. § 552(b)(3) in conjunction with § 6103 (exemption for returns and return
information as deﬁned in § 6103(b)).
The following documents also will not be available for public inspection as part of this process:
(1) transmittal letters in which the Service furnishes publications or other publicly available
material to taxpayers, without any signiﬁcant legal discussion;
(2) responses to taxpayer or third party contacts that are inquiries with respect to a pending
request for a letter ruling, technical advice memorandum, or Chief Counsel Advice (which are
subject to public inspection under § 6110 after their issuance); and
(3) responses to taxpayer or third party communications with respect to any investigation,
audit, litigation, or other enforcement action.

Oral Advice

.05
(1) No oral rulings and no written rulings in response to oral requests. The Service does
not orally issue letter rulings or determination letters, nor does it issue letter rulings or determination letters in response to oral requests from taxpayers. Service employees ordinarily will
discuss with taxpayers or their representatives inquiries about whether the Service will rule on
particular issues and about procedural matters regarding the submission of requests for letter
rulings or determination letters for a particular case.
(2) Discussion possible on substantive issues. At the discretion of the Service and as time
permits, Service employees may also discuss substantive issues with taxpayers or their representatives. Such a discussion will not bind the Service or the Ofﬁce of Chief Counsel, and it cannot
be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).
Service employees who are not directly involved in the examination, appeal, or litigation of

Bulletin No. 2017–1

Sec. 2.04
January 3, 2017

particular substantive tax issues will not discuss those issues with taxpayers or their representatives unless the discussion is coordinated with Service employees who are directly involved. The
taxpayer or the taxpayer’s representative ordinarily will be asked whether an oral request for
advice or information relates to a matter pending before another ofﬁce of the Service or before
a Federal court.
If a tax issue is not under examination, in appeals, or in litigation, the tax issue may be
discussed even though the issue is affected by a nontax issue pending in litigation.
A taxpayer may seek oral technical guidance from a taxpayer service representative in a Field
ofﬁce or Service Center when preparing a return or report.
The Service does not respond to letters seeking to conﬁrm the substance of oral discussions,
and the absence of a response to such a letter is not a conﬁrmation.
(3) Oral guidance is advisory only, and the Service is not bound by it. Oral guidance is
advisory only, and the Service is not bound by it, for example, when examining the taxpayer’s
return.
SECTION 3. ON WHAT
ISSUES MAY
TAXPAYERS REQUEST
WRITTEN ADVICE
UNDER THIS REVENUE
PROCEDURE?

Taxpayers may request letter rulings, information letters, and closing agreements under this
revenue procedure on issues within the jurisdiction of the Associate ofﬁces. Taxpayers uncertain
as to whether an Associate ofﬁce has jurisdiction with regard to a speciﬁc factual situation may
call the telephone number for the Associate ofﬁce listed in section 10.07(1) of this revenue
procedure.
Except as provided in section 6.14 of this revenue procedure, taxpayers also may request
determination letters from the Director in the appropriate operating division. See sections 7 and
12 of this revenue procedure. For determination letters from TE/GE, see Rev. Proc. 2017– 4 and
Rev. Proc. 2017–5, this Bulletin.

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

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

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

.02 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
Products) include those that involve income taxes and changes in method of accounting of banks,
savings and loan associations, real estate investment trusts (REITs), regulated investment companies (RICs), real estate mortgage investment conduits (REMICs), insurance companies and
products, tax-exempt obligations, mortgage credit certiﬁcates, tax credit bonds (including speciﬁed tax credit bonds), build America bonds, and ﬁnancial products.
For the procedures to obtain private letter rulings involving tax-exempt state and local
obligations, see Rev. Proc. 96 –16, 1996 –1 C.B. 630.

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

Sec. 3.01
January 3, 2017

.03 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting) include those that involve recognition and timing of income and deductions of
individuals and corporations, sales and exchanges, capital gains and losses, installment sales,
equipment leasing, long-term contracts, inventories, amortization, depreciation, the alterna-

Bulletin No. 2017–1

tive minimum tax, net operating losses generally, including changes in method of accounting
for these issues, and accounting periods. (Note that certain issues involving individual
retirement accounts (IRAs) are under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division. See section 4.02, this revenue procedure).
Issues under the
jurisdiction of the
Associate Chief Counsel
(International)

.04 Issues under the jurisdiction of the Associate Chief Counsel (International) include the tax
treatment of nonresident aliens and foreign corporations, withholding of tax on nonresident aliens
and foreign corporations, foreign tax credit, determination of sources of income, income from
sources outside the United States, subpart F questions, domestic international sales corporations
(DISCs), foreign sales corporations (FSCs), exclusions under § 114 for extraterritorial income
(ETI), international boycott determinations, treatment of certain passive foreign investment
companies, income affected by treaty, U.S. possessions, and other matters relating to the activities
of non-U.S. persons within the United States or U.S.-related persons outside the United States,
and changes in method of accounting for these persons.
For the procedures to obtain advance pricing agreements under § 482, see Rev. Proc. 2015– 41,
2015–35 I.R.B. 263.
For competent authority procedures related to bilateral and multilateral advance pricing
agreements, see Rev. Proc. 2015– 40, 2015–35 I.R.B. 236.

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

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

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

.06 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration) include those that involve Federal tax procedure and administration, disclosure and privacy
law, reporting and paying taxes (including payment of taxes under § 6166), assessing and
collecting taxes (including interest and penalties), abating, crediting, or refunding overassessments or overpayments of tax, and ﬁling information returns.

Issues under the
jurisdiction of the
Associate Chief Counsel
(Tax Exempt and
Government Entities)

.07 Issues under the jurisdiction of the Associate Chief Counsel (Tax Exempt and Government
Entities) include those that involve the application of employment taxes and taxes on selfemployment income, exemption requirements for tax-exempt organizations, tax treatment (including application of the unrelated business income tax) of tax-exempt organizations (including
federal, state, local, and Indian tribal governments), political organizations described in § 527,
qualiﬁed tuition programs described in § 529, qualiﬁed ABLE programs described in § 529A,
trusts described in § 4947(a), certain excise taxes, disclosure obligations and information return
requirements of tax-exempt organizations, employee beneﬁt programs (including executive
compensation arrangements, qualiﬁed retirement plans, deferred compensation plans, and health
and welfare beneﬁt programs) and IRAs, issues integrally related to employee beneﬁt programs
and IRAs (such as, for example, the sale of stock to employee stock ownership plans or eligible
worker-owned cooperatives under § 1042), and changes in method of accounting associated with
employee beneﬁt programs.
Note that certain issues involving exempt organizations, employee plans, and government
entities fall under the jurisdiction of the Commissioner, Tax Exempt and Government Entities

Bulletin No. 2017–1

Sec. 4.01
January 3, 2017

Division of the Internal Revenue Service. See Rev. Proc. 2017– 4 and Rev. Proc. 2017–5 this
Bulletin.
SECTION 4. ON WHAT
ISSUES MUST WRITTEN
ADVICE BE
REQUESTED UNDER
DIFFERENT
PROCEDURES?
Issues involving alcohol,
tobacco, and ﬁrearms taxes

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

Certain issues involving
qualiﬁed retirement plans,
individual retirement
accounts (IRAs), and
exempt organizations

.02 The procedures for obtaining certain letter rulings, closing agreements, determination
letters, information letters, and oral advice on qualiﬁed retirement plans and IRAs that are under
the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division are provided
in Rev. Proc. 2017– 4, this Bulletin. Rev. Proc. 2017– 4, this Bulletin, also includes the procedures
for issuing determination letters on the qualiﬁed status of pension, proﬁt-sharing, stock bonus,
annuity, and employee stock ownership plans under §§ 401, 403(a), 409, and 4975(e)(7), and the
status for exemption of any related trusts or custodial accounts under § 501(a). See also Rev. Proc.
2017–5, this Bulletin, for the procedures for issuing determination letters on the tax-exempt status
of organizations under § 501 and § 521, the foundation status of organizations described in
§ 501(c)(3) and the foundation status of nonexempt charitable trusts described in § 4947(a)(1).
For the user fee requirements applicable to requests under the jurisdiction of the Commissioner,
Tax Exempt and Government Entities Division, see Section 30 of Rev. Proc. 2017– 4, and Section
14 of Rev. Proc. 2017–5 this Bulletin.

SECTION 5. UNDER
WHAT
CIRCUMSTANCES DO
THE ASSOCIATE
OFFICES ISSUE LETTER
RULINGS?
In income and gift tax
matters

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

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

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

Sec. 4.01
January 3, 2017

Bulletin No. 2017–1

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

.03 An Associate ofﬁce will consider a request for an extension of time for making an election
or other application for relief under § 301.9100 –3 of the Treasury Regulations, even if submitted
after the return covering the issue presented in the § 301.9100 request has been ﬁled, an
examination of the return has begun, or the issues in the return are being considered by Appeals
or a Federal court. Except for certain requests pertaining to applications for recognition of tax
exemption under the jurisdiction of the Commissioner, Tax Exempt and Government Entities
Division, a § 301.9100 request is a letter ruling request. Therefore, the § 301.9100 request should
be submitted pursuant to this revenue procedure. However, a § 301.9100 request involving
recharacterization of an IRA (see § 1.408A–5, Q&A– 6) should be submitted pursuant to Rev.
Proc. 2017– 4. An election made pursuant to § 301.9100 –2 for an automatic extension of time is
not a letter ruling request and does not require payment of any user fee. See § 301.9100 –2(d) and
section 15.03(1) of this revenue procedure.
(1) Format of request. A § 301.9100 request (other than an election made pursuant to
§ 301.9100 –2 and certain requests pertaining to applications for recognition of tax exemption
under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division) must
be in the general form of, and meet the general requirements for, a letter ruling request. These
requirements are given in section 7 of this revenue procedure. A § 301.9100 request must include
an afﬁdavit and declaration from the taxpayer and other parties having knowledge or information
about the events that led to the failure to make a valid regulatory election and to the discovery of
the failure. See §§ 301.9100 –3(e)(2) and (e)(3). In addition, a § 301.9100 request must include
the information required by § 301.9100 –3(e)(4).
(2) Period of limitation. The ﬁling of a request for relief under § 301.9100 does not suspend
the running of any applicable period of limitation. See § 301.9100 –3(d)(2). The Associate ofﬁce
ordinarily will not issue a § 301.9100 ruling if the period of limitation on assessment under
§ 6501(a) for the taxable year in which an election should have been made, or for any taxable
years that would have been affected by the election had it been timely made, will expire before
receipt of a § 301.9100 letter ruling. See § 301.9100 –3(c)(1)(ii). If, however, the taxpayer
consents to extend the period of limitation on assessment under § 6501(c)(4) for the taxable year
in which the election should have been made and for any taxable years that would have been
affected by the election had it been timely made, the Associate ofﬁce may issue the letter ruling.
See § 301.9100 –3(d)(2). Note that the ﬁling of a claim for refund under § 6511 does not extend
the period of limitation on assessment. If § 301.9100 –3 relief is granted, the Associate ofﬁce may
require the taxpayer to consent to an extension of the period of limitation on assessment. See
§ 301.9100 –3(d)(2).
(3) Taxpayer must notify the Associate ofﬁce if examination of its return begins while the
request is pending. The taxpayer must notify the Associate ofﬁce if the Service begins an
examination of the taxpayer’s return for the taxable year in which an election should have been
made, or for any taxable years that would have been affected by the election had it been timely
made, while a § 301.9100 –3 request is pending. This notiﬁcation must include the name and
telephone number of the examining agent. See § 301.9100 –3(e)(4)(i) and section 7.05(1)(b) of
this revenue procedure.
(4) Associate ofﬁce will notify examination agent, appeals ofﬁcer, or attorney of a
§ 301.9100 request if the taxpayer’s return is being examined by a Field ofﬁce or is being
considered by an Appeals ofﬁce or a Federal court. If the taxpayer’s return for the taxable year
in which an election should have been made, or for any taxable years that would have been
affected by the election had it been timely made, is being examined by a Field ofﬁce or considered
by an Appeals ofﬁce or a Federal court, the Associate ofﬁce will notify the appropriate
examination agent, appeals ofﬁcer, or attorney that a § 301.9100 request has been submitted to
the Associate ofﬁce. The examination agent, appeals ofﬁcer, or attorney is not authorized to deny
consideration of a § 301.9100 request. The letter ruling will be mailed to the taxpayer and a copy

Bulletin No. 2017–1

Sec. 5.03
January 3, 2017

will be sent to the appeals ofﬁcer, attorney, or appropriate Service ofﬁcial in the operating
division that has examination jurisdiction over the taxpayer’s tax return.
(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009 – 41. Eligible entities
requesting a letter ruling because they do not meet all of the eligibility requirements of section
4.01 of Rev. Proc. 2009 – 41, 2009 –39 I.R.B. 439, must include either the following representation as part of the entity’s request for a letter ruling or an explanation regarding why they do not
qualify to do so: “All required U.S. tax and information returns of the entity (or, if the entity was
not required to ﬁle any such returns under the desired classiﬁcation, then all required U.S. tax and
information returns of each affected person as deﬁned in Section 4.02 of Rev. Proc. 2009 – 41)
were ﬁled timely or within 6 months of the due date of the respective return (excluding
extensions) as if the entity classiﬁcation election had been in effect on the requested date. No U.S.
tax or information returns were ﬁled inconsistently with those described in the prior sentence.”
(6) Relief for late initial classiﬁcation election. In lieu of requesting a letter ruling under
§ 301.9100 –1 through § 301.9100 –3 and this revenue procedure, entities that satisfy the
requirements set forth in section 4.01 of Rev. Proc. 2009 – 41, 2009 –39 I.R.B. 439, may apply for
late classiﬁcation election relief under Rev. Proc. 2009 – 41. Requests for such relief are not
subject to user fees. See section 3.01 of Rev. Proc. 2009 – 41 and section 15.03(2) of this revenue
procedure.
Determinations under
§ 999(d)

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

In matters involving § 367

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

In estate tax matters

.06 In general, the Associate Chief Counsel (Passthroughs and Special Industries) issues letter
rulings on transactions affecting the estate tax on the prospective estate of a living person. The
Associate ofﬁce will not issue letter rulings for prospective estates on computations of tax,
actuarial factors, or factual matters. With respect to the transactions affecting the estate tax of the
decedent’s estate, generally the Associate ofﬁce issues letter rulings before the decedent’s estate
tax return is ﬁled.
If the taxpayer is requesting a letter ruling regarding a decedent’s estate tax and the estate tax
return is due to be ﬁled before the letter ruling is expected to be issued, the taxpayer should obtain
an extension of time for ﬁling the return and should notify the Associate ofﬁce branch considering
the letter ruling request that an extension has been obtained.

Sec. 5.04
January 3, 2017

Bulletin No. 2017–1

If the return is ﬁled before the letter ruling is received from the Associate ofﬁce, the taxpayer
must disclose on the return that a letter ruling has been requested, attach a copy of the pending
letter ruling request to the return, and notify the Associate ofﬁce that the return has been ﬁled. See
section 7.05(2) of this revenue procedure. The Associate ofﬁce will make every effort to issue the
letter ruling within 3 months of the date the return was ﬁled.
If the taxpayer requests a letter ruling after the return is ﬁled, but before the return is examined,
the taxpayer must notify the Field ofﬁce having jurisdiction over the return that a letter ruling has
been requested, attach a copy of the pending letter ruling request, and notify the Associate ofﬁce
that a return has been ﬁled. See section 7.05(2) of this revenue procedure. The Associate ofﬁce
will make every effort to issue the letter ruling within 3 months of the date the return has been
ﬁled.
If the letter ruling cannot be issued within that 3-month period, the Associate ofﬁce will notify
the Field ofﬁce having jurisdiction over the return, which may, by memorandum to the Associate
ofﬁce, grant an additional period for the issuance of the letter ruling.
In matters involving
additional estate tax under
§ 2032A(c)

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

In matters involving
qualiﬁed domestic trusts
under § 2056A

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

In generation-skipping
transfer tax matters

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

In employment and excise
tax matters

.10 In employment and excise tax matters, the Associate ofﬁces issue letter rulings on proposed
transactions and on completed transactions either before or after the return is ﬁled for those
transactions.
Letter ruling requests regarding employment status (employer/employee relationship) from
Federal agencies and instrumentalities or their workers must be submitted to the Internal Revenue
Service at the address set forth on the current Form SS– 8, Determination of Worker Status for
Purposes of Federal Employment Taxes and Income Tax Withholding. If the Federal agency or
instrumentality service recipient (the ﬁrm) makes the request, the ﬁrm will receive any issued
letter ruling. A copy will also be sent to any identiﬁed workers. If the worker makes the request
and the ﬁrm has been contacted for information, both the worker and the ﬁrm will receive any
issued letter ruling. The letter ruling will apply to any individuals engaged by the ﬁrm under
substantially similar circumstances. See section 12.04 of this revenue procedure for requests
regarding employment status made by taxpayers other than Federal agencies and instrumentalities
or their workers.

In procedural and
administrative matters

Bulletin No. 2017–1

.11 The Associate Chief Counsel (Procedure and Administration) issues letter rulings on
matters arising under the Code and related statutes and regulations that involve the time, place,
manner, and procedures for reporting and paying taxes; or the ﬁling of information returns.

Sec. 5.04
January 3, 2017

In Indian tribal
government matters

.12 Pursuant to Rev. Proc. 84 –37, 1984 –1 C.B. 513, as modiﬁed by Rev. Proc. 86 –17, 1986 –1
C.B. 550, and this revenue procedure, the Ofﬁce of Associate Chief Counsel (Tax Exempt and
Government Entities) issues determinations recognizing a tribal entity as an Indian tribal government within the meaning of § 7701(a)(40) or as a political subdivision of an Indian tribal
government under § 7871(d) if it determines, after consultation with the Secretary of the Interior,
that the entity satisﬁes the statutory deﬁnition of an Indian tribal government or has been
delegated governmental functions of an Indian tribal government. Requests for determinations
under Rev. Proc. 84 –37 are letter ruling requests, and, therefore, should be submitted to the Ofﬁce
of Associate Chief Counsel (Tax Exempt and Government Entities) pursuant to this revenue
procedure.
(1) Deﬁnition of Indian tribal government. The term “Indian tribal government” is deﬁned
under § 7701(a)(40) to mean the governing body of any tribe, band, community, village, or group
of Indians, or (if applicable) Alaska Natives, which is determined by the Secretary of the
Treasury, after consultation with the Secretary of the Interior, to exercise governmental functions.
Section 7871(d) provides that, for purposes of § 7871(a), a subdivision of an Indian tribal
government shall be treated as a political subdivision of a state if the Secretary of the Treasury
determines, after consultation with the Secretary of the Interior, that the subdivision has been
delegated the right to exercise one or more of the substantial governmental functions of the Indian
tribal government.
(2) Inclusion in list of tribal governments. Rev. Proc. 2008 –55, 2008 –2 C.B. 768, designates
the Indian tribal entities that appear on the current or future lists of federally recognized Indian
tribes published annually by the Department of the Interior, Bureau of Indian Affairs, as Indian
tribal governments that are treated similarly to states for certain Federal tax purposes. Rev. Proc.
84 –36, 1984 –1 C.B. 510, as modiﬁed by Rev. Proc. 86 –17, 1986 –1 C.B. 550, provides a list of
political subdivisions of Indian tribal governments that are treated as political subdivisions of
states for certain Federal tax purposes. Under Rev. Proc. 84 –37, as modiﬁed by Rev. Proc. 86 –17,
tribal governments or subdivisions recognized under § 7701(a)(40) or § 7871(d) will be included
in the list of recognized tribal government entities in future lists of federally recognized Indian
tribes published annually by the Department of the Interior, Bureau of Indian Affairs, or revised
versions of Rev. Proc. 84 –36.

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

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

In exempt organizations
matters

.14 In exempt organizations matters, the Associate Chief Counsel (Tax Exempt and Government Entities) generally issues letter rulings on proposed transactions or on completed transactions if the letter ruling request is submitted before the return is ﬁled for the year in which the
transaction is completed. The Associate Chief Counsel (Tax Exempt and Government Entities)
will not ordinarily issue a letter ruling on a completed transaction if the letter ruling request is
submitted after the return is ﬁled for the year in which the transaction is completed. “Not
ordinarily” means that unique and compelling reasons must be demonstrated to justify the
issuance of a letter ruling submitted after the return is ﬁled for the year in which the transaction
is completed. The taxpayer must contact the Field ofﬁce having audit jurisdiction over their return
and obtain the Field’s consent to the issuance of such a letter ruling.
See Rev. Proc. 2017–5, this Bulletin, for the procedures for issuing determination letters on
issues under the jurisdiction of the Director Exempt Organizations Rulings and Agreements,
including determination letters on the tax-exempt status of organizations under § 501 and § 521,

Sec. 5.12
January 3, 2017

Bulletin No. 2017–1

the foundation status of organizations described in § 501(c)(3), and the foundation status of
nonexempt charitable trusts described in § 4947(a)(1).
In qualiﬁed retirement
plan and IRA matters

.15 In qualiﬁed retirement plan and IRA matters, (other than those listed in Rev. Proc. 2017– 4),
the Associate Chief Counsel (Tax Exempt and Government Entities) will generally issue letter
rulings on proposed transactions and on completed transactions either before or after the return
is ﬁled, including those involving:
(1) §§ 72 (other than the computation of the exclusion ratio), 219, 381(c)(11), 402, 403(b)
(except with respect to whether the form of a plan satisﬁes the requirements of § 403(b) as
provided in Rev. Proc. 2017– 4, this Bulletin), 404, 408, 408A, 412, 414(e), 511 through 514,
4971(b) and (g), 4972, 4973, 4974, 4978, 4979, and 4980;
(2) Waiver of the minimum funding standard (see Rev. Proc. 2004 –15, 2004 –1 C.B. 490,
section 3.03 of which is superseded by 2017– 4);
(3) Waiver under § 4980F(c)(4) of all or part of the excise tax imposed for failure to satisfy the
notice requirements described in § 4980F(e);
(4) Whether a plan amendment is reasonable and provides for only de minimis increases in plan
liabilities in accordance with §§ 401(a)(33) and 412(c)(7)(B)(i) of the Code (see Rev. Proc.
79 – 62, 1979 –2 C.B. 576);
(5) With respect to employee stock ownership plans and tax credit employee stock ownership
plans, §§ 409, 1042, 4975(d)(3) and 4975(e)(7). Qualiﬁcation issues arising under these sections
are generally within the jurisdiction of Employee Plans Determinations. However, see Rev. Proc.
2017–3, section 4.02(12);
(6) Abatement of ﬁrst tier excise taxes under § 4962;
(7) Relief under § 301.9100 –1 that is not related to Roth IRA recharacterizations; and
(8) Grants of extensions of time other than pursuant to § 301.9100 –1.

A request to revoke an
election

.16 If a taxpayer is required to ﬁle a letter ruling request to obtain consent to revoke an election
made on a return, an Associate ofﬁce will consider the request, even if an examination of the
return has begun or the issues in the return are being considered by Appeals or a Federal court.
The procedures in this revenue procedure applicable to a § 301.9100 request apply to a letter
ruling request to revoke the election.

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

.17 In general, the Service will not issue a letter ruling or determination letter on an issue that
it cannot readily resolve before the promulgation of a regulation or other published guidance. See
section 6.09 of this revenue procedure.
However, an Associate ofﬁce may issue letter rulings under the following conditions:
(1) Answer is clear or is reasonably certain. If the letter ruling request presents an issue for
which the answer seems clear by applying the statute, regulations, and applicable case law to the
facts or for which the answer seems reasonably certain but not entirely free from doubt.

Bulletin No. 2017–1

Sec. 5.15
January 3, 2017

(2) Answer is not reasonably certain. If the letter ruling request presents an issue for which
the answer does not seem reasonably certain, the Associate ofﬁce may issue the letter ruling,
using its best efforts to arrive at a determination, if it is in the best interest of tax administration.
SECTION 6. UNDER
WHAT
CIRCUMSTANCES DOES
THE SERVICE NOT
ISSUE LETTER
RULINGS OR
DETERMINATION
LETTERS?
Ordinarily not if the
request involves an issue
under examination or
consideration or in
litigation

.01 The Service ordinarily does not issue a letter ruling or a determination letter if, at the time
of the request, the identical issue is involved in the taxpayer’s return for an earlier period and that
issue—
(1) is being examined by a Field ofﬁce;
(2) is being considered by Appeals;
(3) is pending in litigation in a case involving the taxpayer or a related taxpayer;
(4) has been examined by a Field ofﬁce or considered by Appeals and the statutory period of
limitations on assessment or on ﬁling a claim for refund or credit of tax has not expired; or
(5) has been examined by a Field ofﬁce or considered by Appeals and a closing agreement
covering the issue or liability has not been entered into by a Field ofﬁce or by Appeals.
If a return dealing with an issue for a particular year is ﬁled while a request for a letter ruling
on that issue is pending, an Associate ofﬁce will issue the letter ruling unless it is notiﬁed by the
taxpayer or otherwise learns that an examination of that issue or the identical issue on an earlier
year’s return has been started by a Field ofﬁce. See section 7.05 of this revenue procedure. In
income and gift tax matters, as well as in qualiﬁed retirement plan, IRA, and exempt organizations
matters, even if an examination has begun, an Associate ofﬁce ordinarily will issue the letter
ruling if the Field ofﬁce agrees by memorandum to the issuance of the letter ruling.

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

.02 The Service ordinarily does not issue letter rulings or determination letters in certain areas
because of the factual nature of the matter involved or for other reasons. Rev. Proc. 2017–3, this
Bulletin, and Rev. Proc. 2017–7, this Bulletin, provide a list of these areas. This list is not
all-inclusive because the Service may decline to issue a letter ruling or a determination letter when
appropriate in the interest of sound tax administration, including due to resource constraints, or
on other grounds whenever warranted by the facts or circumstances of a particular case.
Instead of issuing a letter ruling or determination letter, the Service may, when it is considered
appropriate and in the interest of sound tax administration, issue an information letter calling
attention to well-established principles of tax law.
If the Service determines that it is not in the interest of sound tax administration to issue a letter
ruling or determination letter due to resource constraints, it will adopt a consistent approach with
respect to taxpayers that request a ruling on the same issue. The Service will also consider adding

Sec. 6.01
January 3, 2017

Bulletin No. 2017–1

the issue to the no rule list at the ﬁrst opportunity. See sections 2.01 and 3.02 of Rev. Proc.
2017–3, this Bulletin.
Ordinarily not on part of
an integrated transaction

.03 An Associate ofﬁce ordinarily will not issue a letter ruling on only part of an integrated
transaction. If a part of a transaction falls under a no-rule area, a letter ruling on other parts of the
transaction may be issued. Before preparing the letter ruling request, a taxpayer should call a
branch having jurisdiction for the matters on which the taxpayer is seeking a letter ruling to
discuss whether the Associate ofﬁce will issue a letter ruling on part of the transaction.
In addition, the Service will not rule on the qualiﬁcation of any transaction under § 332, § 351,
§ 355, or § 1036, or on whether a transaction constitutes a reorganization within the meaning of
§ 368, regardless of whether such transaction is part of an integrated transaction (see section
3.01(51) of Rev. Proc. 2017–3, this Bulletin). Instead, the Associate Chief Counsel (Corporate)
will only issue a letter ruling on signiﬁcant issues (within the meaning of section 3.01(51) of Rev.
Proc. 2017–3) presented in a transaction described in § 332, § 351, § 355, § 368, or § 1036. For
example, the Service may rule on signiﬁcant issues under § 1.368 –1(d) (continuity of business
enterprise) and § 1.368 –1(e) (continuity of interest). Letter rulings requested under this section
6.03 are subject to the no-rule policies of Rev. Proc. 2017–3. In addition, the Service will not rule
on the tax consequences that result from the application of § 332, § 351, § 355, § 368, or § 1036
(including nonrecognition and basis) except to the extent of a signiﬁcant issue and only to the
extent consistent with the no-rule policies of Rev. Proc. 2017–3.
Before preparing a letter ruling request under this section involving signiﬁcant issues presented
in a transaction described in § 332, § 351, § 355, § 368, or § 1036, a taxpayer is encouraged to
call the Ofﬁce of Associate Chief Counsel (Corporate) at the telephone number provided in
section 10.07(1)(a) of this revenue procedure to discuss whether the Service will entertain a letter
ruling request under this section 6.03. The Service reserves the right to rule on any other aspect
of the transaction (including ruling adversely) to the extent the Service believes it is in the best
interests of tax administration. Cf. section 2.01 of Rev. Proc. 2017–3.
Taxpayers may request rulings on one or more signiﬁcant issues in a single letter ruling request.
Letter ruling requests under this section 6.03 must include the following for each signiﬁcant issue:
(1) A narrative description of the transaction that puts the issue in context;
(2) A statement identifying the issue;
(3) An analysis of the relevant law, which should set forth the authorities most closely related
to the issue and explain why these authorities do not resolve the issue, and an explanation
concerning why the issue is signiﬁcant within the meaning of section 3.01(51) of Rev. Proc.
2017–3;
(4) Information and representations relevant to the issue. Taxpayers should consult other
published authorities (see, for example, Appendix G of this revenue procedure, which identiﬁes
certain checklist and guideline revenue procedures), including those modiﬁed by Rev. Proc.
2013–32, 2013–28 I.R.B. 55 (e.g., Rev. Proc. 96 –30, 1996 –1 C.B. 696), and other authorities
(e.g., Rev. Rul. 73–234, 1973–1 C.B. 180 (applying § 355(b) to the activities performed by
employees of a corporation engaged in a farming business)), to identify information or representations but only to the extent that they relate to the issue; and
(5) The precise ruling(s) requested.

Bulletin No. 2017–1

Sec. 6.03
January 3, 2017

If the Service issues a letter ruling on a signiﬁcant issue under this revenue procedure, then the
letter ruling will state that no opinion is expressed as to any issue or step not speciﬁcally addressed
by the letter. In addition, letter rulings issued under this revenue procedure will contain the
following (or similar) language:
This letter is issued pursuant to section 6.03 of Rev. Proc. 2017–1, 2017–1 I.R.B. 1,
regarding one or more signiﬁcant issues under § 332, § 351, § 355, § 368, or § 1036. The
ruling[s] contained in this letter only address[es] one or more discrete legal issues involved
in the transaction. This Ofﬁce expresses no opinion as to the overall tax consequences of the
transactions described in this letter or as to any issue not speciﬁcally addressed by the
ruling[s] below.
Ordinarily not on which of
two entities is a common
law employer

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

Ordinarily not to business
associations or groups

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

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

.06 The Service ordinarily does not issue letter rulings or determination letters regarding the tax
consequences of a transaction for taxpayers who are not directly involved in the request if the
requested letter ruling or determination letter would not address the tax status, liability, or
reporting obligations of the requester. For example, a taxpayer may not request a letter ruling
relating to the tax consequences of a transaction to a customer or client, if the tax status, liability,
or reporting obligations of the taxpayer would not be addressed in the ruling, because the
customer or client is not directly involved in the letter ruling request. The tax liability of each
shareholder is, however, directly involved in a letter ruling on the reorganization of a corporation.
Accordingly, a corporate taxpayer could request a letter ruling that solely addressed the tax
consequences to its shareholders of a proposed reorganization.
Rev. Proc. 96 –16, 1996 –1 C.B. 630, sets forth rules for letter ruling requests involving
tax-exempt state and local government obligations.

Ordinarily not to foreign
governments

.07 The Service ordinarily does not issue letter rulings or determination letters to foreign
governments or their political subdivisions about the U.S. tax effects of their laws. The Associate
ofﬁces also do not issue letter rulings on the effect of a tax treaty on the tax laws of a treaty
country for purposes of determining the tax of the treaty country. See section 13.02 of Rev. Proc.
2015– 40, 2015–35 I.R.B. 236. Treaty partners can continue to address matters such as these under
the provisions of the applicable tax treaty. In addition, the Associate ofﬁces may issue letter
rulings to foreign governments or their political subdivisions on their own tax status or liability
under U.S. law if the request meets the requirements of this revenue procedure.

Ordinarily not on Federal
tax consequences of
proposed legislation

.08 The Associate ofﬁces ordinarily do not issue letter rulings on a matter involving the Federal
tax consequences of any proposed Federal, state, local, municipal, or foreign legislation. The
Ofﬁce of Associate Chief Counsel (Tax Exempt and Government Entities) may issue letter rulings

Sec. 6.04
January 3, 2017

Bulletin No. 2017–1

regarding the effect of proposed state, local, or municipal legislation upon an eligible deferred
compensation plan under § 457(b) provided that the letter ruling request relating to the plan
complies with the other requirements of this revenue procedure. The Associate ofﬁces also may
provide general information in response to an inquiry.
Ordinarily not before
issuance of a regulation or
other published guidance

.09 Generally, the Service will not issue a letter ruling or a determination letter if the request
presents an issue that cannot be readily resolved before a regulation or any other published
guidance is issued. When the Service has closed a regulation project or any other published
guidance project that might have answered the issue or decided not to open a regulation project
or any other published guidance project, the Associate ofﬁces may consider all letter ruling
requests unless the issue is covered by section 6 of this revenue procedure, Rev. Proc. 2017–3,
this Bulletin, or Rev. Proc. 2017–7, this Bulletin.

Not on frivolous issues

.10 The Service will not issue a letter ruling or a determination letter on frivolous issues. A
“frivolous issue” is one without basis in fact or law or one that asserts a position that courts have
held frivolous or groundless. Examples of frivolous or groundless issues include, but are not
limited to:
(1) frivolous “constitutional” claims, such as claims that the requirement to ﬁle tax returns and
pay taxes constitutes an unreasonable search barred by the Fourth Amendment, violates Fifth and
Fourteenth Amendment protections of due process, violates Thirteenth Amendment protections
against involuntary servitude, or is unenforceable because the Sixteenth Amendment does not
authorize nonapportioned direct taxes or was never ratiﬁed;
(2) claims that income taxes are voluntary, that the term “income” is not deﬁned in the Internal
Revenue Code, or that preparation and ﬁling of Federal income tax returns violates the Paperwork
Reduction Act;
(3) claims that tax may be imposed only on coins minted under a gold or silver standard or that
receipt of Federal Reserve Notes does not cause an accretion to wealth;
(4) claims that a person’s income is not taxable because he or she falls within a class entitled
to “reparation claims” or an extra-statutory class of individuals exempt from tax, e.g., “free-born”
individuals;
(5) claims that a taxpayer can refuse to pay taxes on the basis of opposition to certain
Governmental expenditures;
(6) claims that taxes apply only to Federal employees; only to residents of Puerto Rico, Guam,
the U.S. Virgin Islands, the District of Columbia, or “Federal enclaves;” or that §§ 861 through
865 or any other provision of the Code imposes taxes on U.S. citizens and residents only on
income derived from foreign based activities;
(7) claims that wages or personal service income are “not income,“ are ”nontaxable receipts,“
or are a “nontaxable exchange for labor;”
(8) claims that income tax withholding by an employer on wages is optional; or
(9) other claims that the courts have characterized as frivolous or groundless.

Bulletin No. 2017–1

Sec. 6.10
January 3, 2017

Additional examples of frivolous or groundless issues may be found in IRS publications and
other guidance (including, but not limited to, Notice 2010 –33, Frivolous Positions, and I.R.M.
4.10.12.1.1, Frivolous Arguments).
No “comfort” letter rulings

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

Not on alternative plans or
hypothetical situations

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

Not on property conversion
after return ﬁled

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

Circumstances under
which determination letters
are not issued by a
Director

.14 A Director will not issue a determination letter if—
(1) the taxpayer has directed a similar inquiry to an Associate ofﬁce;
(2) the same issue, involving the same taxpayer or a related taxpayer, is pending in a case in
litigation or before Appeals;
(3) the request involves an industry-wide problem;
(4) the speciﬁc employment tax question at issue in the request has been, or is being, considered
by the Central Ofﬁce of the Social Security Administration or the Railroad Retirement Board for
the same taxpayer or a related taxpayer; or
(5) the request is for a determination of constructive sales price under § 4216(b) or § 4218(c),
which deal with special provisions applicable to the manufacturers excise tax. The Associate
Chief Counsel (Passthroughs and Special Industries) will, in certain circumstances, issue letter
rulings in this area. See section 5.13 of this revenue procedure.

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

Sec. 6.11
January 3, 2017

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

Bulletin No. 2017–1

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

.01

(1) Complete statement of facts and other information. Each request for a letter ruling or a
determination letter must contain a complete statement of all facts relating to the transaction.
These facts include—
(a) names, addresses, telephone numbers, and taxpayer identiﬁcation numbers of all interested
parties (the term “all interested parties” does not mean all shareholders of a widely held
corporation requesting a letter ruling relating to a reorganization or all employees where a large
number may be involved);
(b) the annual accounting period, and the overall method of accounting (cash or accrual) for
maintaining the accounting books and ﬁling the Federal income tax return, of all interested
parties;
(c) a description of the taxpayer’s business operations;
(d) a complete statement of the business reasons for the transaction;
(e) a detailed description of the transaction; and
(f) all other facts relating to the transaction or to the taxpayer’s requested tax treatment thereof.

Documents and foreign
laws

(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents
pertinent to the transaction, and foreign laws.
(a) Documents. True copies of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, and other documents pertinent to the transaction must be
submitted with the request.
If the request concerns a corporate distribution, reorganization, or similar transaction, the
corporate balance sheet and proﬁt and loss statement should also be submitted. If the request
relates to a prospective transaction, the most recent balance sheet and proﬁt and loss statement
should be submitted.
If any document, including any balance sheet and proﬁt and loss statement, is in a language
other than English, the taxpayer must also submit a certiﬁed English translation of the document,
along with a true copy of the document. For guidelines on the acceptability of such documents,
see paragraph (c) of this section 7.01(2).
Each document other than the request should be labeled and attached to the request in
alphabetical sequence. Original documents such as contracts, wills, etc., should not be submitted
because they become part of the Service’s ﬁle and will not be returned.

Bulletin No. 2017–1

Sec. 7.01
January 3, 2017

(b) Foreign laws. The taxpayer must submit with the request a copy of the relevant parts
of all foreign laws, including statutes, regulations, administrative pronouncements, and any
other relevant legal authority. The documents submitted must be in the ofﬁcial language of
the country involved and must be copied from an ofﬁcial publication of the foreign
government or another widely available and generally accepted publication. If English is not
the ofﬁcial language of the country involved, the taxpayer must also submit a copy of an
English language version of the relevant parts of all foreign laws. This translation must be:
(i) from an ofﬁcial publication of the foreign government or another widely available,
generally accepted publication; or (ii) a certiﬁed English translation submitted in accordance
with paragraph (c) of this section 7.01(2).
The taxpayer must identify the title and date of publication, including updates, of any widely
available and generally accepted publication that the taxpayer (or the taxpayer’s qualiﬁed
translator) uses as a source for the relevant parts of the foreign law.
(c) Standards for acceptability of submissions of documents in a language other than
English and certiﬁed English translations of laws in a language other than English. The
taxpayer must submit with the request an accurate and complete certiﬁed English translation of
the relevant parts of all contracts, wills, deeds, agreements, instruments, trust documents,
proposed disclaimers, and other documents pertinent to the transaction that are in a language other
than English. If the taxpayer chooses to submit certiﬁed English translations of foreign laws, those
translations must be based on an ofﬁcial publication of the foreign government or another widely
available and generally accepted publication. In either case, the translation must be that of a
qualiﬁed translator and must be attested to by the translator. The attestation must contain: (i) a
statement that the translation submitted is a true and accurate translation of the foreign language
document or law; (ii) a statement as to the attestant’s qualiﬁcations as a translator and as to that
attestant’s qualiﬁcations and knowledge regarding tax matters or foreign law if the law is not a
tax law; and (iii) the attestant’s name and address.
Analysis of material facts

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

Same issue in an earlier
return under Examination,
before Appeals, before a
Federal Court, or being
Considered by the Pension
Beneﬁt Guaranty
Corporation, by the
Department of Labor, or
by the Department of
Health and Human
Services

(4) Statement regarding whether same issue is in an earlier return and additional
information required for § 301.9100 requests. The request must state whether, to the best of the
knowledge of both the taxpayer and the taxpayer’s representatives, the same issue is addressed in
any return of the taxpayer, a related taxpayer within the meaning of § 267, or of a member of an
afﬁliated group of which the taxpayer is also a member within the meaning of § 1504, or any
predecessor that(a) is currently under examination, before Appeals, or before a Federal court;
(b) was previously under examination, before Appeals, or before a Federal court;
(c) in qualiﬁed retirement plan matters, is being considered by the Pension Beneﬁt Guaranty
Corporation or the Department of Labor; or
(d) in health care matters, is being considered by the Department of Labor or the Department
of Health and Human Services.
The Service will not ordinarily issue a letter ruling or determination letter if, at the time of the

Sec. 7.01
January 3, 2017

Bulletin No. 2017–1

request, the identical issue is under examination or consideration or in litigation. See section 6.01
in this revenue procedure. A limited exception to the above rule is made for a § 301.9100 request.
See section 5.03 in this revenue procedure.
If a § 301.9100 request involves a tax year that is currently under examination, before Appeals,
or before a Federal court, the taxpayer must notify the Service, as outlined above. This notiﬁcation
must include the name and telephone number of the examining agent or appeals ofﬁcer.
Same or similar issue in a
request previously
submitted or currently
pending

(5) Statement regarding whether same or similar issue was previously ruled on or
whether a request involving it was submitted or is currently pending. The request must state
whether, to the best of the knowledge of both the taxpayer and the taxpayer’s representatives—
(a) the Service previously ruled on the same or a similar issue for the taxpayer, a related
taxpayer within the meaning of § 267, or a member of an afﬁliated group of which the taxpayer
is also a member within the meaning of § 1504, or a predecessor;
(b) the taxpayer, a related taxpayer, a predecessor, or any of their representatives previously
submitted a request (including an application for change in method of accounting) involving the
same or a similar issue but no letter ruling or determination letter was issued;
(c) the taxpayer, a related taxpayer, or a predecessor previously submitted a request (including
an application for change in method of accounting) involving the same or a similar issue that is
currently pending with the Service;
(d) at the same time as this request, the taxpayer or a related taxpayer is presently submitting
another request (including an application for change in method of accounting) involving the same
or a similar issue; or
(e) the taxpayer or a related taxpayer had, or has scheduled, a pre-submission conference
involving the same or a similar issue.
If the statement is afﬁrmative for (a), (b), (c), (d), or (e) of this section 7.01(5), the statement
must give the date the request was submitted, the date the request was withdrawn or ruled on, if
applicable, and other details of the Service’s consideration of the issue.

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

(6) Statement regarding interpretation of a substantive provision of an income or estate
tax treaty. If the request involves the interpretation of a substantive provision of an income or
estate tax treaty, the request must state whether—
(a) the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue
for the taxpayer, a related taxpayer within the meaning of § 267, or a member of an afﬁliated
group of which the taxpayer is also a member within the meaning of § 1504, or any predecessor;
(b) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is being
examined or has been settled by the tax authority of the treaty jurisdiction or is otherwise the
subject of a closing agreement in that jurisdiction; and
(c) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is being
considered by the competent authority of the treaty jurisdiction.

Bulletin No. 2017–1

Sec. 7.01
January 3, 2017

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

(7) Letter from Bureau of Indian Affairs relating to a letter ruling request for recognition
of Indian tribal government status or status as a political subdivision of an Indian tribal
government. To facilitate prompt action on a letter ruling request for recognition of Indian tribal
government status or status as a political subdivision of an Indian tribal government, the taxpayer
must submit with the letter ruling request a letter from the Department of the Interior, Bureau of
Indian Affairs (“BIA”), verifying that the tribe is recognized by BIA as an Indian tribe and that
the tribal government exercises governmental functions or that the political subdivision of the
Indian tribal government has been delegated substantial governmental functions. A letter ruling
request that does not contain this letter from BIA cannot be resolved until the Service obtains a
letter from BIA regarding the tribe’s status.
The taxpayer should send a request to verify tribal status to the following address:
Branch of General Indian Legal Activity
Division of Indian Affairs
Ofﬁce of the Solicitor
U.S. Department of the Interior
1849 C Street, NW
Washington, DC 20240

Statement of authorities
supporting taxpayer’s
views

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

Statement of authorities
contrary to taxpayer’s
views

(9) Statement of contrary authorities. To avoid a delay in the ruling process, contrary
authorities should be brought to the attention of the Service at the earliest possible opportunity.
If there are signiﬁcant contrary authorities, it is usually helpful to discuss them in a presubmission conference prior to submitting the ruling request. See section 10.07 of this revenue
procedure regarding pre-submission conferences. The taxpayer is strongly encouraged to inform
the Service about, and discuss the implications of, any authority believed to be contrary to the
position advanced, such as legislation, tax treaties, court decisions, regulations, notices, revenue
rulings, revenue procedures, or announcements. If the taxpayer determines that there are no
contrary authorities, a statement in the request to this effect should be included. If the taxpayer
does not furnish either contrary authorities or a statement that none exist, the Service in complex
cases or those presenting difﬁcult or novel issues may request submission of contrary authorities
or a statement that none exist. Failure to comply with this request may result in the Service’s
refusal to issue a letter ruling or determination letter.
The taxpayer’s identiﬁcation of and discussion of contrary authorities will generally enable
Service personnel to more quickly understand the issue and relevant authorities. Having this
information should make research more efﬁcient and lead to earlier action by the Service. If the
taxpayer does not disclose and distinguish signiﬁcant contrary authorities, the Service may need
to request additional information, which will delay action on the request.

Statement identifying
pending legislation

Sec. 7.01
January 3, 2017

(10) Statement identifying pending legislation. When ﬁling the request, the taxpayer must
identify any pending legislation that may affect the proposed transaction. In addition, the taxpayer

Bulletin No. 2017–1

must notify the Service if any such legislation is introduced after the request is ﬁled but before
a letter ruling or determination letter is issued.
Deletion statement
required by § 6110

(11) Statement identifying information to be deleted from the public inspection copy of
letter ruling or determination letter. The text of letter rulings and determination letters is open
to public inspection under § 6110. The Service makes deletions from the text before it is made
available for inspection. To help the Service make the deletions required by § 6110(c), a request
for a letter ruling or determination letter must be accompanied by a statement indicating the
deletions desired, except where a letter ruling or determination letter is open to public inspection
under § 6104. If the deletion statement is not submitted with the request, a Service representative
will tell the taxpayer that the request will be closed if the Service does not receive the deletion
statement within 21 calendar days. See section 8.05 of this revenue procedure.
Section 6110(l)(1) provides that § 6110 disclosure provisions do not apply to any matter to
which § 6104 applies. Therefore, letter rulings, determination letters, technical advice memoranda, and related background ﬁle documents dealing with the following matters (covered by
§ 6104) are not subject to § 6110 disclosure provisions—
(i) An approved application for exemption under § 501(a) as an organization described in
§ 501(c) or (d), or notice of status as a political organization under § 527, together with any papers
submitted in support of such application or notice;
(ii) An application for exemption under § 501(a) with respect to the qualiﬁcation of a pension,
proﬁt sharing or stock bonus plan, or an individual retirement account described in § 408 or
§ 408A, or any application for exemption under § 501(a) by an organization forming part of such
a plan or account;
(iii) Any document issued by the Internal Revenue Service in which the qualiﬁcation or exempt
status of a plan or account is granted, denied, or revoked or the portion of any document in which
technical advice with respect thereto is given;
(iv) Any application ﬁled and any document issued by the Internal Revenue Service with
respect to the qualiﬁcation or status of master and prototype retirement plans; and
(v) The portion of any document issued by the Internal Revenue Service with respect to the
qualiﬁcation or exempt status of a retirement plan or account of a proposed transaction by such
plan or account.
(a) Format of deletion statement. A taxpayer who wants only names, addresses, and
identifying numbers to be deleted should state this in the deletion statement. If the taxpayer wants
more information deleted, the deletion statement must be accompanied by a copy of the request
and supporting documents on which the taxpayer should bracket the material to be deleted. The
deletion statement must include the statutory basis under § 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or determination
letter is issued, additional deletion statements may be submitted.
(b) Location of deletion statement. The deletion statement must be made in a separate
document from the request for a letter ruling or determination letter and must be placed on top
of the request.

Bulletin No. 2017–1

Sec. 7.01
January 3, 2017

(c) Signature. The deletion statement must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature or faxed signature is not permitted.
(d) Additional information. The taxpayer should follow the same procedures of this section
7.01(11) to propose deletions from any additional information submitted after the initial request.
An additional deletion statement is not required with each submission of additional information
if the taxpayer’s initial deletion statement requests that only names, addresses, and identifying
numbers are to be deleted and the taxpayer wants only the same information deleted from the
additional information.
(e) Taxpayer may protest deletions not made. After receiving from the Service the notice
under § 6110(f)(1) of intention to disclose the letter ruling or determination letter (including
a copy of the version proposed to be open to public inspection and notation of third-party
communications under § 6110(d)), the taxpayer may protest the disclosure of certain
information in the letter ruling or determination letter. The taxpayer must send a written
statement to the Service ofﬁce indicated on the notice of intention to disclose, within 20
calendar days of the date the notice of intention to disclose is mailed to the taxpayer. The
statement must identify those deletions that the Service has not made and that the taxpayer
believes should have been made. The taxpayer must also submit a copy of the version of the
letter ruling or determination letter and bracket the proposed deletions that have not been
made by the Service. Generally, the Service will not consider deleting any material that the
taxpayer did not propose to be deleted before the letter ruling or determination letter was
issued.
Within 20 calendar days after the Service receives the response to the notice under § 6110(f)(1),
the Service will mail to the taxpayer its ﬁnal administrative conclusion regarding the deletions to
be made. The taxpayer does not have the right to a conference to resolve any disagreements
concerning material to be deleted from the text of the letter ruling or determination letter. These
matters may, however, be taken up at any conference that is otherwise scheduled regarding the
request.
(f) Taxpayer may request delay of public inspection. After receiving the notice of intention
to disclose under § 6110(f)(1), but no later than 60 calendar days after the date of the notice, the
taxpayer may send a written request for delay of public inspection under either § 6110(g)(3) or
(4). The request for delay must be sent to the Service ofﬁce indicated on the notice of intention
to disclose. A request for delay under § 6110(g)(3) must contain the date on which it is expected
that the underlying transaction will be completed. The request for delay under § 6110(g)(4) must
contain a statement from which the Commissioner of Internal Revenue may determine whether
there are good reasons for the continued delay.
Signature on request

Authorized representatives

(12) Signature by taxpayer or authorized representative. The request for a letter ruling or
determination letter must be signed and dated by the taxpayer or the taxpayer’s authorized
representative. A stamped signature or faxed signature is not permitted.
(13) Authorized representatives.
(a) To sign the request or to appear before the Service in connection with the request, the
taxpayer’s authorized representative must be (for rules on who may practice before the Service,
see Treasury Department Circular No. 230, 31 C.F.R. part 10):
(1) An attorney who is a member in good standing of the bar of the highest court of any state,
possession, territory, commonwealth, or the District of Columbia and who is not currently under

Sec. 7.01
January 3, 2017

Bulletin No. 2017–1

suspension or disbarment from practice before the Service. He or she must ﬁle a written
declaration with the Service showing current qualiﬁcation as an attorney and current authorization
to represent the taxpayer;
(2) A certiﬁed public accountant who is duly qualiﬁed to practice in any state, possession,
territory, commonwealth, or the District of Columbia and who is not currently under suspension
or disbarment from practice before the Service. He or she must ﬁle a written declaration with the
Service showing current qualiﬁcation as a certiﬁed public accountant and current authorization to
represent the taxpayer;
(3) An enrolled agent is a person who is currently enrolled as an agent to practice before the
Service and who is not currently under suspension or disbarment from practice before the Service.
He or she must ﬁle a written declaration with the Service showing current enrollment and
authorization to represent the taxpayer. The enrollment number must be included in the declaration;
(4) An enrolled actuary is an individual currently enrolled as an actuary by the Joint Board for
the Enrollment of Actuaries pursuant to 29 U.S.C. § 1242 and who is not currently under
suspension or disbarment from practice before the Service. He or she must ﬁle a written
declaration with the Service showing current qualiﬁcation as an enrolled actuary and current
authorization to represent the taxpayer. Practice before the Service as an enrolled actuary is
limited to representation with respect to issues involving §§ 401, 403(a), 404, 412, 413, 414, 419,
419A, 420, 4971, 4972, 4976, 4980, 6057, 6058, 6059, 6652(e), 6652(f), 6692, and 7805(b);
former § 405; and 29 U.S.C. § 1083;
(5) An enrolled retirement plan agent is an individual currently enrolled as a retirement plan
agent who is not currently under suspension or disbarment from practice before the Service. He
or she must ﬁle a written declaration as an enrolled retirement plan agent and current authorization to represent the taxpayer. Practice before the Service as an enrolled retirement plan agent
is limited to representation with respect to issues involving the following programs: Employee
Plans Determination Letter program; Employee Plans Compliance Resolution System; and
Employee Plans Master and Prototype and Volume Submitter program. Enrolled retirement plan
agents also are generally permitted to represent taxpayers with respect to IRS forms under the
5300 and 5500 series, which are ﬁled by retirement plans and plans sponsors, but not with respect
to actuarial forms and schedules; or
(6) Any other person, including a foreign representative, who has received a “Letter of
Authorization” from the Director of the Ofﬁce of Professional Responsibility under section
10.7(d) of Treasury Department Circular No. 230. A person may make a written request for a
“Letter of Authorization” to: Ofﬁce of Professional Responsibility, SE:OPR, Internal Revenue
Service, 1111 Constitution Ave., NW, Washington, DC 20224. Section 10.7(d) of Circular No.
230 authorizes the Commissioner to allow an individual who is not otherwise eligible to practice
before the Service to represent another person in a particular matter.
(b) A regular full-time employee representing his or her employer; a general partner representing his or her partnership; a bona ﬁde ofﬁcer representing his or her corporation, association,
or organized group; a trustee, receiver, guardian, personal representative, administrator, executor,
or regular full-time employee representing a trust, receivership, guardianship, or estate; or an
individual representing an immediate family member may sign the request or appear before the
Service in connection with the request if the individual provides current authorization to represent
the taxpayer. See section 7.01(14) of this revenue procedure.

Bulletin No. 2017–1

Sec. 7.01
January 3, 2017

A taxpayer may be required to ﬁle a Form 8821, Tax Information Authorization, for certain
employees not authorized to represent the taxpayer to receive taxpayer information from the
Service.
(c) Tax return preparers, including registered tax return preparers, that are not described in
subsections (a) and (b) of this section may not sign the request, appear before the Service, or
represent a taxpayer in connection with a request for a letter ruling or a determination letter. See
section 10.3(f)(3) of Treasury Department Circular No. 230.
(d) A foreign representative, other than a person referred to in subsections (a) and (b) of this
section, is not authorized to practice before the Service within the United States and must
withdraw from representing a taxpayer in a request for a letter ruling or a determination letter. In
this situation, the nonresident alien or foreign entity must submit the request for a letter ruling or
a determination letter on the individual’s or the entity’s own behalf or through a person referred
to in subsections (a) and (b) of this section.
Power of attorney and
declaration of
representative

(14) Power of attorney and declaration of representative. Form 2848, Power of Attorney
and Declaration of Representative, should be used to provide the representative’s authority (Part
I of Form 2848, Power of Attorney) and the representative’s qualiﬁcation (Part II of Form 2848,
Declaration of Representative). The name of the person signing Part I of Form 2848 should also
be typed or printed on this form. A stamped signature is not permitted. An original, a copy, or fax
of the power of attorney is acceptable so long as its authenticity is not reasonably disputed. For
additional information regarding the power of attorney form, see section 7.02(2) of this revenue
procedure.
The taxpayer’s authorized representative, whether or not enrolled, must comply with Treasury
Department Circular No. 230, which provides the rules for practice before the Service. In
situations where the Service believes that the taxpayer’s representative is not in compliance with
Circular 230, the Service will bring the matter to the attention of the Ofﬁce of Professional
Responsibility.

Penalties of perjury
statement

(15) Penalties of perjury statement.
(a) Format of penalties of perjury statement. A request for a letter ruling or determination
letter and any change in the request submitted at a later time must be accompanied by the
following declaration: “Under penalties of perjury, I declare that I have examined [Insert, as
appropriate: this request or this modiﬁcation to the request], including accompanying
documents, and, to the best of my knowledge and belief, [Insert, as appropriate: the request
or the modiﬁcation] contains all the relevant facts relating to the request, and such facts are
true, correct, and complete.”
See section 8.05(4) of this revenue procedure for the penalties of perjury statement applicable
for submissions of additional information.
(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer, not the
taxpayer’s representative. A stamped signature or faxed signature is not permitted.
The person who signs for a corporate taxpayer must be an ofﬁcer of the corporate taxpayer who
has personal knowledge of the facts and whose duties are not limited to obtaining a letter ruling
or determination letter from the Service. If the corporate taxpayer is a member of an afﬁliated

Sec. 7.01
January 3, 2017

Bulletin No. 2017–1

group ﬁling consolidated returns, a penalties of perjury statement must also be signed and
submitted by an ofﬁcer of the common parent of the group.
The person signing for a trust, a state law partnership, or a limited liability company must be,
respectively, a trustee, general partner, or member-manager who has personal knowledge of the
facts.
Number of copies of
request to be submitted

(16) Number of copies of request to be submitted. Generally, a taxpayer needs to submit the
original and one copy of the request for a letter ruling or determination letter. If more than one
issue is presented in the letter ruling request, the taxpayer is encouraged to submit additional
copies of the request.
Further, the original and two copies of the request for a letter ruling or determination letter are
required if—
(a) the taxpayer is requesting separate letter rulings or determination letters on multiple issues
as explained later under section 7.02(1) of this revenue procedure;
(b) the taxpayer is requesting deletions other than names, addresses, and identifying numbers,
as explained in section 7.01(11)(a) of this revenue procedure (one copy is the request for the letter
ruling or determination letter and the second copy is the deleted version of such request); or
(c) the taxpayer is requesting a closing agreement (as deﬁned in section 2.02 of this revenue
procedure) on the issue presented.

Sample format for a letter
ruling request

(17) Sample format for a letter ruling request. To assist a taxpayer or the taxpayer’s
representative in preparing a letter ruling request, a sample format for a letter ruling request is
provided in Appendix B of this revenue procedure. This format is not required to be used.

Checklist

(18) Checklist for letter ruling requests. An Associate ofﬁce will be able to respond more
quickly to a taxpayer’s letter ruling request if the request is carefully prepared and complete. The
checklist in Appendix C of this revenue procedure is designed to assist taxpayers in preparing a
request by reminding them of the essential information and documents to be furnished with the
request. The checklist in Appendix C must be completed to the extent required by the instructions
in the checklist, signed and dated by the taxpayer or the taxpayer’s representative, and placed on
top of the letter ruling request. If the checklist in Appendix C is not received, a branch
representative will ask the taxpayer or the taxpayer’s representative to submit the checklist; this
may delay action on the letter ruling request.
For letter ruling requests on certain matters, speciﬁc checklists supplement the checklist in
Appendix C. These checklists are in Appendix D, Appendix E, or are listed in section 1 of
Appendix G of this revenue procedure and must also be completed and placed on top of the letter
ruling request along with the checklist in Appendix C.
Taxpayers can obtain copies of the checklist in Appendix C by calling (202) 317-5221 (not a
toll-free call) or by accessing this revenue procedure in Internal Revenue Bulletin 2017–1 on the
IRS website at www.irs.gov. Taxpayers can access this revenue procedure on the website by
following the “News” link, the “IRS Guidance” link, and the “Internal Revenue Bulletins (after
June 2003)” link to obtain Internal Revenue Bulletin 2017–1. A copy of this checklist may be
used.

Bulletin No. 2017–1

Sec. 7.01
January 3, 2017

Additional procedural
information required with
request

.02

Multiple issues
(1) To request separate letter rulings for multiple issues in a single situation. If more than
one issue is presented in a request for a letter ruling, the Associate ofﬁce generally will issue a
single letter ruling covering all the issues. If the taxpayer requests separate letter rulings on any
of the issues (because, for example, one letter ruling is needed sooner than another), the Associate
ofﬁce usually will comply with the request unless doing so is not feasible or not in the best interest
of the Service. A taxpayer who wants separate letter rulings on multiple issues should make this
clear in the request and submit the original and two copies of the request. See section 15.06(3)
regarding whether a single user fee will be charged.
In issuing each letter ruling, the Associate ofﬁce will state that it has issued separate letter
rulings or that requests for other letter rulings are pending.
Power of attorney used to
indicate recipient of a copy
or copies of a letter ruling
or a determination letter

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

“Two-part” letter ruling
requests

(3) To request a particular conclusion on a proposed transaction. A taxpayer who requests
a particular conclusion on a proposed transaction may make the request for a letter ruling in two
parts. This type of request is referred to as a “two-part” letter ruling request. The ﬁrst part must
include the complete statement of facts and related documents described in section 7.01 of this
revenue procedure. The second part must include a summary statement of the facts the taxpayer
believes to be controlling in reaching the conclusion requested.
If the Associate ofﬁce accepts the taxpayer’s statement of controlling facts, it will base its letter
ruling on these facts. Ordinarily, this statement will be incorporated into the letter ruling. The
Associate ofﬁce reserves the right to rule on the basis of a more complete statement of the facts
and to seek more information in developing the facts and restating them.
A taxpayer who chooses this two-part procedure has all the rights and responsibilities provided
in this revenue procedure.
Taxpayers may not use the two-part procedure if it is inconsistent with other procedures, such
as those dealing with requests for permission to change accounting methods or periods, appli-

Sec. 7.02
January 3, 2017

Bulletin No. 2017–1

cations for recognition of exempt status under § 501(a) or § 521, or requests for rulings on
employment tax status.
After the Associate ofﬁce has resolved the issues presented by a letter ruling request, the
Associate ofﬁce representative may request that the taxpayer submit a proposed draft of the letter
ruling to expedite the issuance of the ruling. See section 8.07 of this revenue procedure.
Expedited handling

(4) To request expedited handling. The Service ordinarily processes requests for letter rulings
and determination letters in order of the date received. Expedited handling means that a request
is processed ahead of requests received before it. Expedited handling is granted only in rare and
unusual cases, both out of fairness to other taxpayers and because the Service seeks to process all
requests as expeditiously as possible and to give appropriate deference to normal business
exigencies in all cases not involving expedited handling.
A taxpayer with a compelling need to have a request processed ahead of requests received
before it may request expedited handling. This request must explain in detail the need for
expedited handling. The request for expedited handling must be made in writing, preferably in a
separate letter included with the request for the letter ruling or determination letter or provided
soon after its ﬁling. If the request for expedited handling is contained in the letter requesting the
letter ruling or determination letter, the letter should state at the top of the ﬁrst page “Expedited
Handling Is Requested. See page ___ of this letter.”
A request for expedited handling will not be forwarded to a branch for action until the user fee
has been paid
Whether a request for expedited handling will be granted is within the Service’s discretion. The
Service may grant the request when a factor outside a taxpayer’s control creates a real business
need to obtain a letter ruling or determination letter before a certain date to avoid serious business
consequences. Examples include situations in which a court or governmental agency has imposed
a speciﬁc deadline for the completion of a transaction, or where a transaction must be completed
expeditiously to avoid an imminent business emergency (such as the hostile takeover of a
corporate taxpayer), provided that the taxpayer can demonstrate that the deadline or business
emergency, and the need for expedited handling, resulted from circumstances that could not
reasonably have been anticipated or controlled by the taxpayer. To qualify for expedited handling
in such situations, the taxpayer must also demonstrate that the taxpayer submitted the request as
promptly as possible after becoming aware of the deadline or emergency. The extent to which the
letter ruling or determination letter request complies with all of the applicable requirements of this
revenue procedure, and fully and clearly presents the issues, is a factor in determining whether
expedited treatment will be granted. When the Service agrees to process a request out of order,
it cannot give assurance that any letter ruling or determination letter will be processed by the date
requested.
The scheduling of a closing date for a transaction or a meeting of the board of directors or
shareholders of a corporation, without regard for the time it may take to obtain a letter ruling or
determination letter, will not be considered a sufﬁcient reason to process a request ahead of its
regular order. Also, the possible effect of ﬂuctuation in the market price of stocks on a transaction
will not be considered a sufﬁcient reason to process a request out of order.
Because most requests for letter rulings and determination letters cannot be processed out of
order, the Service urges all taxpayers to submit their requests well in advance of the contemplated
transaction. In addition, to facilitate prompt action on letter ruling requests, taxpayers are
encouraged to ensure that their initial submissions comply with all of the requirements of this

Bulletin No. 2017–1

Sec. 7.02
January 3, 2017

revenue procedure (including the requirements of other applicable guidelines set forth in Appendix G of this revenue procedure), to prepare “two-part” requests described in section 7.02(3) of
this revenue procedure when possible, and to promptly provide any additional information
requested by the Service.
Fax to taxpayer or
taxpayer’s authorized
representative of any
document related to letter
ruling request

(5) To request the receipt of any document related to letter ruling request by fax. If the
taxpayer so requests, the Associate ofﬁce may fax to the taxpayer or the taxpayer’s authorized
representative a copy of any document related to the letter ruling request (for example, the letter
ruling itself or a request for additional information).
A request to fax to the taxpayer or the taxpayer’s authorized representative a copy of any
document related to the letter ruling request must be made in writing, preferably as part of the
original request for the letter ruling. The request may be submitted at a later date, but such a
request will only be respected prospectively with respect to documents generated after it is
received, and must be received prior to the signing of the letter ruling. The request must contain
the fax number of the taxpayer or the taxpayer’s authorized representative to whom the document
is to be faxed.
A document other than the letter ruling will be faxed by a branch representative. The copy of
the letter ruling may be faxed by either a branch representative or the Disclosure and Litigation
Support Branch of the Legal Processing Division of the Ofﬁce of Associate Chief Counsel
(Procedure and Administration) (CC:PA:LPD:DLS). For purposes of § 301.6110 –2(h), however,
a letter ruling is not issued until the ruling is mailed.

Requesting a conference

Additional information
required in letter ruling
requests involving welfare
beneﬁt funds (including
voluntary employees’
beneﬁciary associations
(VEBAs))

(6) To request a conference. A taxpayer who wants to have a conference on the issues
involved in a request for a letter ruling should indicate this in writing when ﬁling the request or
soon thereafter. See sections 10.01, 10.02, and 11.11(2) of this revenue procedure.
.03

Requests for letter rulings
on the tax consequences of
a proposed transaction
involving a welfare beneﬁt
fund

(1) Requests for letter rulings on the tax consequences of a proposed transaction involving
a welfare beneﬁt fund. If a letter ruling is sought on the tax consequences to both the welfare
beneﬁt fund and an employer that contributed to the fund, each taxpayer (the fund and each
contributing employer) must submit a separate letter ruling request and pay the applicable user fee
listed in Appendix A of this revenue procedure.

Code sections to consider

(2) Code sections to consider. In addition to any other applicable Code sections, taxpayers
should consider whether there are tax consequences under the following Code sections—
(a) For taxpayers that are VEBAs. VEBAs requesting a letter ruling on a proposed
transaction involving the use or transfer of VEBA assets should consider the tax consequences
under §§ 501(c)(9), 505, 511, and 512, and should also include with the request a copy of the
VEBA’s most recent letter addressing its status under § 501(c)(9).
(b) For taxpayers that are contributing employers. Contributing employers requesting a
letter ruling on a proposed transaction involving the disposition of fund assets should consider the
tax consequences under §§ 61, 111, 419, 419A, and 4976.

Sec. 7.03
January 3, 2017

Bulletin No. 2017–1

(i) Special considerations for § 4976 rulings.
(A) Tax Beneﬁt Rule. A contributing employer that deducted contributions to a welfare beneﬁt
fund and requests a letter ruling as to the tax consequences under § 4976 must either (1) address
why no amount should be included in income under the tax beneﬁt rule, or (2) represent that it
is including in income amounts that are subject to the tax beneﬁt rule.
(B) Standing. In the case of a trade association (an organization described in § 501(c)(6)) that
sponsors a welfare beneﬁt fund, the association does not have standing to request a ruling under
§ 4976 on behalf of employers who contributed to the fund. However, a trade association
generally has standing to request a ruling under § 4976 on its own behalf as an employer if the
trade association contributed to the fund and the fund provided beneﬁts to the trade association’s
own employees.
(C) Additional use of welfare beneﬁt fund assets or transfer of assets between two or more
welfare beneﬁt funds. If the proposed transaction involves either an additional use of welfare
beneﬁt fund assets (for example, providing beneﬁts to a new group of employees or providing a
new type of beneﬁt) or a transfer of assets between or among two or more welfare beneﬁt funds,
the application should state whether the employer has an obligation, in the current or any future
year, to provide the beneﬁts. For situations in which a use or transfer of assets would involve
assets or beneﬁts subject to one or more collective bargaining agreements, the application should
include a copy of each applicable collective bargaining agreement. For a transfer of assets, the
application should also address whether the welfare beneﬁt funds could be merged.
Address to which to send
request for letter ruling or
determination letter
Request for letter ruling

.04

(1) Request for letter ruling. Original letter ruling requests must be sent to the appropriate
Associate ofﬁce. The packages should be marked RULING REQUEST SUBMISSION.
(a) If a private delivery service is not used, requests for letter rulings should be sent to the
following address:
Internal Revenue Service
Attn: CC:PA:LPD:DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
If a private delivery service is used, the address is:
Internal Revenue Service
Attn: CC:PA:LPD:DRU, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
(b) Requests for letter rulings may also be hand delivered between the hours of 8:00 a.m. and
4:00 p.m. to the courier’s desk at the loading dock of 1111 Constitution Avenue, NW, Washington, DC. A receipt will be given at the courier’s desk. The package should be addressed to:

Bulletin No. 2017–1

Sec. 7.04
January 3, 2017

Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:DRU, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
(c) Requests for letter rulings must not be submitted by fax.
Request for determination
letter

(2) Request for determination letter.
(a) Taxpayers under the jurisdiction of LB&I should send a request for a determination letter
to the following address:
Internal Revenue Service
Large Business and International Division
1111 Constitution Ave., NW
LB&I:ACDDI:PMO, IR 1135
Washington, DC 20224
or via email to *[email protected]
(b) SB/SE and W&I taxpayers should send requests for determination letters to the appropriate
SB/SE ofﬁce listed in Appendix F of this revenue procedure.
(c) For a determination letter under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division, see Rev. Proc. 2017– 4 and Rev. Proc. 2017–5, this Bulletin.

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

.05
(1) Circumstances under which the taxpayer with a pending letter ruling request must
notify the Associate ofﬁce. The taxpayer must notify the Associate ofﬁce if, after the letter ruling
request is ﬁled but before a letter ruling is issued, the taxpayer knows that—
(a) a Field ofﬁce has started an examination of the issue or the identical issue on an earlier
year’s return;
(b) in the case of a § 301.9100 request, a Field ofﬁce has started an examination of the return
for the taxable year in which an election should have been made or any taxable year that would
have been affected by the election had it been timely made. See § 301.9100 –3(e)(4)(i) and section
5.03(3) of this revenue procedure;
(c) legislation that may affect the transaction has been introduced. See section 7.01(10) of this
revenue procedure;
(d) another letter ruling request (including an application for change in method of accounting),
involving the same or similar issue as that pending with the Service, has been submitted by the
taxpayer or a related party within the meaning of § 267 or a member of an afﬁliated group of
which the taxpayer is also a member within the meaning of § 1504;

Sec. 7.05
January 3, 2017

Bulletin No. 2017–1

(e) in qualiﬁed retirement plan matters, the issue is being considered by the Pension Beneﬁt
Guaranty Corporation or the Department of Labor; or
(f) in health care matters, the issue is being considered by the Department of Labor or the
Department of Health and Human Services.
Taxpayer must notify the
Associate ofﬁce if a return
is ﬁled and must attach the
request to the return

(2) Taxpayer must notify the Associate ofﬁce if a return is ﬁled and must attach the
request to the return. If the taxpayer ﬁles a return before a letter ruling is received from the
Associate ofﬁce concerning an issue in the return, the taxpayer must notify the Associate ofﬁce
that the return has been ﬁled. The taxpayer must also attach a copy of the letter ruling request
(Form 3115, if for a non-automatic change in method of accounting) to the return to alert the Field
ofﬁce and avoid premature ﬁeld action on the issue. Taxpayers ﬁling their returns electronically
may satisfy this requirement by attaching to their return a statement providing the date of the letter
ruling request and the control number of the letter ruling.
If, under the limited circumstances permitted in section 5 of this revenue procedure, the
taxpayer requests a letter ruling after the return is ﬁled, but before the return is examined, the
taxpayer must notify the Associate ofﬁce that the return has been ﬁled. The taxpayer must also
notify the Field ofﬁce having jurisdiction over the return and attach a copy of the letter ruling
request to the notiﬁcation to alert the Field ofﬁce and avoid premature ﬁeld action on the issue.
This section 7.05 also applies to pending requests for a closing agreement on a transaction for
which a letter ruling is not requested or issued.
For purposes of this section 7.05, the term “return” includes an original return, amended return,
or claim for refund.

When to attach letter
ruling or determination
letter to return

.06 A taxpayer who, before ﬁling a return, receives a letter ruling or determination letter about
any transaction that has been consummated and that is relevant to the return being ﬁled must
attach to the return a copy of the letter ruling or determination letter. Taxpayers ﬁling their returns
electronically may satisfy this requirement by attaching a statement to their return that provides
the date and control number of the letter ruling or determination letter.
For purposes of this section 7.06, the term “return” includes an original return, amended return,
or claim for refund.

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

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

Bulletin No. 2017–1

.07 The taxpayer or the taxpayer’s authorized representative may obtain information regarding
the status of a request for a letter ruling or determination letter by calling the person whose name
and telephone number are shown on the acknowledgment of receipt of the request or, in the case
of a request for a letter ruling, the appropriate branch representative who contacts the taxpayer as
explained in section 8.02 of this revenue procedure.
.08

(1) In general. A taxpayer may withdraw a request for a letter ruling or determination letter
at any time before the letter ruling or determination letter is signed by the Service. Correspondence and exhibits related to a request that is withdrawn or related to a letter ruling request for
which an Associate ofﬁce declines to issue a letter ruling will not be returned to the taxpayer. See

Sec. 7.08
January 3, 2017

section 7.01(2)(a) of this revenue procedure. In appropriate cases, an Associate ofﬁce may publish
its conclusions in a revenue ruling or revenue procedure.
Notiﬁcation of appropriate
Service ofﬁcial

(2) Notiﬁcation of appropriate Service ofﬁcial.
(a) Letter ruling requests. If a taxpayer withdraws a letter ruling request or if the Associate
ofﬁce declines to issue a letter ruling, the Associate ofﬁce generally will notify, by memorandum,
the appropriate Service ofﬁcial in the operating division that has examination jurisdiction of the
taxpayer’s tax return. For taxpayers under the jurisdiction of the Division Counsel (Large
Business & International), the Associate ofﬁce will also send a copy of the memorandum to the
Assistant Deputy Commissioner, Compliance Integration. In doing so, the Associate ofﬁce may
give the Service ofﬁcial its views on the issues in the request for consideration in any later
examination of the return. This section 7.08(2)(a) generally does not apply if the taxpayer
withdraws the letter ruling request and submits a written statement that the transaction has been,
or is being, abandoned and if the Associate ofﬁce has not already formed an adverse opinion. See
section 7.08(1) of this revenue procedure.
(b) Notiﬁcation of Service ofﬁcial may constitute Chief Counsel Advice. If the memorandum to the Service ofﬁcial referred to in paragraph (a) of this section 7.08(2) provides more than
the fact that the request was withdrawn and that the Associate ofﬁce was tentatively adverse, or
more than the fact that the Associate ofﬁce declines to issue a letter ruling, the memorandum may
constitute Chief Counsel Advice, as deﬁned in § 6110(i)(1), and may be subject to disclosure
under § 6110.
(3) Refund of user fee. Ordinarily, the user fee will not be returned for a letter ruling request
that is withdrawn. If the Associate ofﬁce declines to issue a letter ruling on all of the issues in the
request, the user fee will be returned. If the Associate ofﬁce issues a letter ruling on some, but not
all, of the issues, the user fee will not be returned. See section 15.10 of this revenue procedure for
additional information regarding the refund of user fees.

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

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

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

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

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

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

Sec. 8.01
January 3, 2017

Bulletin No. 2017–1

(2) whether the taxpayer should submit additional information to enable the Associate ofﬁce to
rule on the matter;
(3) whether the letter ruling complies with all of the provisions of this revenue procedure, and
if not, which requirements have not been met; or
(4) whether, because of the nature of the transaction or the issue presented, a tentative
conclusion on the issue cannot be reached.
If the letter ruling request involves matters within the jurisdiction of more than one branch or
Associate ofﬁce, a representative of the branch that received the original request will tell the
taxpayer within the initial 21 calendar days—
(1) that the matters within the jurisdiction of another branch or Associate ofﬁce have been
referred to that branch or Associate ofﬁce for consideration, and the date the referral was made,
and
(2) that a representative of that branch or Associate ofﬁce will contact the taxpayer within 21
calendar days after receiving the referral to discuss informally the procedural and, to the extent
possible, the substantive issues in the request.
This section 8.02 applies to all matters except for cases involving a request for change in
method of accounting or accounting period and cases within the jurisdiction of the Associate
Chief Counsel (Financial Institutions and Products) concerning insurance issues requiring actuarial computations.
Determines if transaction
can be modiﬁed to obtain
favorable letter ruling

.03 If less than a fully favorable letter ruling is indicated, the branch representative will tell the
taxpayer whether minor changes in the transaction or adherence to certain published positions
would bring about a favorable ruling. The branch representative may also tell the taxpayer the
facts that must be furnished in a document to comply with Service requirements. The branch
representative will not suggest precise changes that would materially alter the form of the
proposed transaction or materially alter a taxpayer’s proposed accounting period.
If, at the end of this discussion, the branch representative determines that a meeting in the
Associate ofﬁce would be more helpful to develop or exchange information, a meeting will be
offered and an early meeting date arranged. When offered, this meeting is in addition to the
taxpayer’s conference of right that is described in section 10.02 of this revenue procedure.

Not bound by informal
opinion expressed

May request additional
information
Must be submitted within
21 calendar days

Bulletin No. 2017–1

.04 The Service will not be bound by the informal opinion expressed by the branch representative or any other Service representative, and such an opinion cannot be relied upon as a basis
for obtaining retroactive relief under the provisions of § 7805(b).
.05
(1) Additional information must be submitted within 21 calendar days. If the request lacks
essential information, which may include additional information needed to satisfy the procedural
requirements of this revenue procedure as well as substantive changes to transactions or documents needed from the taxpayer, the branch representative will request such information during
the initial or subsequent contacts with the taxpayer or its authorized representative. The representative will inform the taxpayer or its authorized representative that the request will be closed

Sec. 8.05
January 3, 2017

if the Associate ofﬁce does not receive the requested information within 21 calendar days from
the date of the request unless an extension of time is granted. To facilitate prompt action on letter
ruling requests, taxpayers may request that the Associate ofﬁce request additional information by
fax. See section 7.02(5) of this revenue procedure.
Material facts furnished to the Associate ofﬁce by telephone or fax, or orally at a conference,
must be promptly conﬁrmed by letter to the Associate ofﬁce. This conﬁrmation, and any
additional information requested by the Associate ofﬁce that is not part of the information
requested during the initial contact, must be furnished within 21 calendar days from the date the
Associate ofﬁce makes the request.
Extension of reply period if
justiﬁed and approved

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

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

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

Penalties of perjury
statement for additional
information

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

Faxing request and
additional information

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

Address to which to send
additional information

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

Sec. 8.05
January 3, 2017

Bulletin No. 2017–1

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, ofﬁce symbols, and
room number of the Associate ofﬁce representative who requested
the information]
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
For cases involving a request for change in method of accounting or period, see section 9.08
of this revenue procedure for the address to which to send additional information.
(b) If a private delivery service is used, the additional information for all cases should be sent
to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, ofﬁce symbols, and
room number of the Associate ofﬁce representative who requested
the information]
1111 Constitution Ave., NW
Washington, DC 20224
Identifying information
included in additional
information

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

Number of copies of
additional information to
be submitted

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

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

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

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

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

Bulletin No. 2017–1

Sec. 8.05
January 3, 2017

Taxpayers are encouraged to submit this draft in a printed copy that is in a computer scannable
format. The printed copy will become part of the permanent ﬁles of the Associate ofﬁce. The
printed copy should be sent to the same address as any additional information and should contain
in the transmittal the information that should be included with any additional information (for
example, a penalties of perjury statement is required). See section 8.05(4) of this revenue
procedure.
Issues separate letter
rulings for substantially
identical letter rulings, but
generally issues a single
letter ruling for related
§ 301.9100 letter rulings
Substantially identical
letter rulings

Related § 301.9100 letter
rulings

.08

(1) Substantially identical letter rulings. For letter ruling requests qualifying for the user fee
provided in paragraph (A)(5)(a) of Appendix A of this revenue procedure for substantially
identical letter rulings, a separate letter ruling will generally be issued for each requester or entity
as the Associate ofﬁce deems necessary.
(2) Related § 301.9100 letter rulings.
(a) For a § 301.9100 letter ruling request for an extension of time to ﬁle a Form 3115 qualifying
under section 15.07(4) for the user fee provided in paragraph (A)(5)(d) of Appendix A of this
revenue procedure for an identical change in method of accounting, the Associate ofﬁce generally
will issue a single letter on behalf of all applicants on Form 3115 that are the subject of the
request.
(b) For a § 301.9100 –3 letter ruling request for an extension of time to ﬁle an entity
classiﬁcation election for multiple entities qualifying under section 15.07(2) for the user fee
provided in paragraph (A)(5)(a) of Appendix A of this revenue procedure, the Associate ofﬁce
generally will issue a single letter on behalf of all entities that are the subject of the request. The
taxpayer may request that separate letters be issued to each entity that is the subject of the request.
See generally section 5.03 of this revenue procedure.

Sends a copy of the letter
ruling to appropriate
Service ofﬁcial

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

SECTION 9. WHAT ARE
THE SPECIFIC AND
ADDITIONAL
PROCEDURES FOR A
REQUEST FOR A
CHANGE IN METHOD
OF ACCOUNTING
FROM THE ASSOCIATE
OFFICES?

This section provides the speciﬁc and additional procedures applicable to a request for a change
in method of accounting under Rev. Proc. 2015–13, 2015–5 I.R.B. 419 (or any successor), as
clariﬁed and modiﬁed by Rev. Proc. 2015–33, 2015–24 I.R.B. 1067, and as modiﬁed by Section
17.02 of Rev. Proc. 2016 –1, 2016 –1 I.R.B. 1, or other automatic change request procedures.

Automatic and nonautomatic change in
method of accounting
requests

Sec. 8.08
January 3, 2017

A request for a change in method of accounting under Rev. Proc. 2015–13, (or any successor),
or other automatic change request procedures is a type of request for a letter ruling. See section
2.01 of this revenue procedure.
.01

Bulletin No. 2017–1

Automatic change in
method of accounting
under Rev. Proc. 2015–13
(or any successor), or other
automatic change request
procedures

(1) Automatic change in method of accounting. Certain changes in methods of accounting
must be made under automatic change request procedures. A change in method of accounting
provided for in an automatic change request procedure must be made using that procedure if the
taxpayer requesting the change is within the scope of the procedure, the change is an automatic
change for the requested year of the change, and the taxpayer is eligible to make the change. The
Commissioner’s consent to an otherwise qualifying automatic change in method of accounting is
granted only if the taxpayer timely complies with the applicable automatic change request
procedures. But see section 9.19 of this revenue procedure concerning review by an Associate
ofﬁce and a Field ofﬁce. In general, a taxpayer requests an automatic change by ﬁling a current
Form 3115, Application for Change in Method of Accounting.
An application ﬁled under the automatic change procedures in Rev. Proc. 2015–13 (or any
successor) or other automatic change request procedure, and this revenue procedure, is hereinafter
referred to as an “automatic change request.” See section 9.22 of this revenue procedure for a list
of automatic change request procedures. See section 9.23 for a list of the sections and Appendices
of this revenue procedure in addition to this section 9 that apply to an automatic change request.
No user fee is required for a change made under an automatic change request procedure.

Non-automatic change in
method of accounting

(2) Non-automatic change in method of accounting. If a change in method of accounting may
not be made under an automatic change request procedure, the taxpayer may request a non-automatic
letter ruling by ﬁling a current Form 3115, Application for Change in Accounting Method, under the
non-automatic change procedures in Rev. Proc. 2015–13 (or any successor), and this revenue
procedure. A Form 3115 ﬁled under Rev. Proc. 2015–13 (or any successor) and this revenue procedure
for a non-automatic change request is hereinafter referred to as a “non-automatic Form 3115.” A
taxpayer ﬁling a non-automatic Form 3115 must submit the required user fee with the completed Form
3115. See section 15 and Appendix A of this revenue procedure for information about user fees. See
section 9.23 for a list of the sections and Appendices of this revenue procedure in addition to this
section 9 that apply to a non-automatic Form 3115.

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

.02 Ordinarily, a taxpayer may request only one change in method of accounting on a Form
3115, Application for Change in Accounting Method. If the taxpayer wants to request a change
in method of accounting for more than one unrelated item or submethod of accounting, the
taxpayer must submit a separate Form 3115 for each unrelated item or submethod, except in
certain situations in which the Service speciﬁcally permits certain unrelated changes to be
included on a single Form 3115. For an example of such a situation, see section 15.03 of Rev.
Proc. 2016 –29, 2016 –21 I.R.B. 880 (or its successor).
A separate Form 3115 (and, therefore, a separate user fee pursuant to section 15 and Appendix
A of this revenue procedure) must be submitted for each taxpayer and each separate trade or
business of a taxpayer, including a qualiﬁed subchapter S subsidiary (QSub) or a single-member
limited liability company (single-member LLC), requesting a change in method of accounting,
except as speciﬁcally permitted or required in guidance published by the Service. See, for
example, section 15.07(4) of this revenue procedure.

Information required with
a Form 3115
Facts and other
information

.03
(1) Facts and other information requested on Form 3115 and in applicable revenue
procedures. In general, a taxpayer requesting a change in method of accounting must ﬁle a
current Form 3115, unless the procedures applicable to the speciﬁc type of change in method of
accounting do not require a Form 3115 to be submitted.
To be eligible for approval of the requested change in method of accounting, the taxpayer must
provide all information requested on the Form 3115 and in its instructions and in Rev. Proc.

Bulletin No. 2017–1

Sec. 9.03
January 3, 2017

2015–13 (or any successor), and, if applicable, the automatic change request procedure. In
addition, the taxpayer must provide all information requested in the applicable sections of this
revenue procedure, including a detailed and complete description of the item being changed and
of the taxpayer’s trade(s) or business(es), the taxpayer’s present and proposed method for the item
being changed, information regarding whether the taxpayer has claimed any federal tax credit
relating to the cost being changed, information regarding whether the taxpayer is under examination, or before Appeals or a Federal court, and a summary of the computation of the net § 481(a)
adjustment, along with an explanation of the methodology used to determine the adjustment,
sufﬁcient to demonstrate that the net § 481(a) adjustment is computed correctly.
For a non-automatic Form 3115 or an automatic change request speciﬁed in the instructions for
line 16 of the Form 3115, the taxpayer must also include a full explanation of the legal basis and
relevant authorities supporting the proposed method, and a detailed and complete description of
the facts and explanation of how the law applies to the taxpayer’s situation.
For a non-automatic Form 3115, the taxpayer must also include a statement of the applicant’s
reasons for the proposed change, copies of all documents related to the proposed change, and a
discussion of whether the law related to the request is uncertain or inadequately addresses the
issue.
The applicant must provide the requested information to be eligible for approval of the
requested change in method of accounting. The taxpayer may be required to provide information
speciﬁc to the requested change in method of accounting, such as an attached statement. The
taxpayer must provide all information relevant to the requested change in method of accounting,
even if not speciﬁcally requested, including an explanation of all material facts relevant to the
requested change in method of accounting.
See also sections 7.01(1) and 7.01(8) of this revenue procedure.
Statement of authorities
contrary to taxpayer’s
views

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

Documents

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

Analysis of material facts

(4) Analysis of material facts. When submitting any document with a Form 3115 or in a
supplemental letter, the taxpayer must explain and provide an analysis of all material facts in the
document. The taxpayer may not merely incorporate the document by reference. The analysis of
the facts must include their bearing on the requested change in method of accounting and must
specify the provisions that apply.

Sec. 9.03
January 3, 2017

Bulletin No. 2017–1

Same issue in an earlier
return

(5) Information regarding whether same issue is in an earlier return. A Form 3115 must
state whether, to the best of the knowledge of both the taxpayer and the taxpayer’s representatives, any return of the taxpayer (or any return of a current or former consolidated group in which
the taxpayer is or was a member) in which the taxpayer used the method of accounting being
changed is under examination, before Appeals, or before a Federal court. See Rev. Proc. 2015–13
(or any successor).

Issue previously submitted
or currently pending

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

Statement identifying
pending legislation

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

Authorized representatives

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

Power of attorney and
declaration of
representative

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

Bulletin No. 2017–1

Sec. 9.03
January 3, 2017

Tax Information
Authorization

Penalties of perjury
statement

(10) Tax Information Authorization. A taxpayer may use Form 8821, Tax Information
Authorization, to authorize an individual to receive a copy of the taxpayer’s change in method of
accounting letter ruling and other related correspondence. If the taxpayer wishes to authorize a
corporation, ﬁrm, organization, or partnership to receive the correspondence, an individual,
identiﬁed by either name or title, must be speciﬁed on the Form 8821. A Form 8821 does not
authorize the taxpayer’s appointee to advocate the taxpayer’s position or to otherwise represent
the taxpayer before the Service.
(11) Penalties of perjury statement
(a) Format of penalties of perjury statement. A Form 3115, and any change to a Form 3115
submitted at a later time, must be accompanied by the following declaration: “Under penalties
of perjury, I declare that I have examined this application, including accompanying
schedules and statements, and to the best of my knowledge and belief, the application
contains all the relevant facts relating to the application, and it is true, correct, and
complete.”
See section 9.08(3) of this revenue procedure for the penalties of perjury statement required for
submissions of additional information.
(b) Signature by taxpayer. A Form 3115 must be signed by, or on behalf of, the taxpayer
requesting the change by an individual who has personal knowledge of the facts of, and authority
to bind the taxpayer in, such matters. For example, an ofﬁcer must sign on behalf of a corporation,
a general partner on behalf of a state law partnership, a member-manager on behalf of a limited
liability company, a trustee on behalf of a trust, or an individual taxpayer on behalf of a sole
proprietorship. If the taxpayer is a member of a consolidated group, a Form 3115 should be
submitted on behalf of the taxpayer by the common parent and must be signed by a duly
authorized ofﬁcer of the common parent. Refer to the signature requirements set forth in the
instructions for the current Form 3115 regarding those who are to sign. See also section 6.02(8)
of Rev. Proc. 2015–13 (or any successor). A stamped signature or faxed signature is not
permitted.
(c) Signature by preparer. A declaration of preparer (other than the taxpayer) is based on all
information of which the preparer has any knowledge.

Additional procedural
information required in
certain circumstances

.04

Recipients of original and
copy of correspondence

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

Expedited handling

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

Sec. 9.04
January 3, 2017

Bulletin No. 2017–1

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

(3) To receive the change in method of accounting letter ruling or any other correspondence related to a Form 3115 by fax. If the taxpayer wants a copy of the change in method of
accounting letter ruling or any other correspondence related to a Form 3115, such as a request for
additional information, faxed to the taxpayer or the taxpayer’s authorized representative, the
taxpayer must submit a written request to fax the letter ruling or related correspondence,
preferably as part of the Form 3115. The request may be submitted at a later date, but it must be
received prior to the mailing of correspondence other than the letter ruling and prior to the signing
of the change in method of accounting letter ruling.
The request to have correspondence relating to the Form 3115 faxed to the taxpayer or
taxpayer’s authorized representative must contain the fax number of the taxpayer or the taxpayer’s authorized representative to whom the correspondence is to be faxed.
A document other than the change in method of accounting letter ruling will be faxed by a
branch representative. The change in method of accounting letter ruling may be faxed by either
a branch representative or the Disclosure and Litigation Support Branch of the Legal Processing
Division of the Ofﬁce of Associate Chief Counsel (Procedure and Administration) (CC:PA:LPD:
DLS).
For purposes of § 301.6110 –2(h), a change in method of accounting letter ruling is not issued
until the change in method of accounting letter ruling is mailed.

Requesting a conference

(4) To request a conference. The taxpayer must complete the appropriate line on the Form
3115 to request a conference, or must request a conference in a later written communication, if
an adverse response is contemplated by the Associate ofﬁce. See section 11.03(1) of Rev. Proc.
2015–13 (or any successor), and sections 10.01 and 10.02 of this revenue procedure.

Addresses to which to send
Forms 3115

.05 Addresses to which to send Forms 3115. Submit the original Form 3115, in the case of
a non-automatic Form 3115, or the copy of the Form 3115, in the case of an automatic change
request, as follows:
(1) Non-automatic Form 3115.
(a) Associate ofﬁce mailing address if private delivery service is not used. If a private
delivery service is not used, a taxpayer, including an exempt organization, must send the original
completed Form 3115 and the required user fee to:
Internal Revenue Service
Attn: CC:PA:LPD:DRU
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044
(b) Mailing address if private delivery service is used. If a private delivery service is used,
a taxpayer, including an exempt organization, must send the original completed Form 3115 and
the required user fee to:
Internal Revenue Service
Attn: CC:PA:LPD:DRU
Room 5336

Bulletin No. 2017–1

Sec. 9.05
January 3, 2017

1111 Constitution Ave., NW
Washington, DC 20224
(c) Address if hand-delivered to the IRS Courier’s desk. For taxpayers, including an exempt
organization, the original completed Form 3115 and the required user fee may be hand delivered
between the hours of 8:00 a.m. and 4:00 p.m. to the courier’s desk at the loading dock of 1111
Constitution Ave., NW, Washington, DC. A receipt will be given at the courier’s desk. The
package should be addressed to:
Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:DRU, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
(2) Automatic change request. If the automatic change request procedure requires a taxpayer
to ﬁle a duplicate copy of the completed Form 3115 for an automatic change request, send the
duplicate copy of the automatic change request Form 3115 to:
Internal Revenue Service
201 West Rivercenter Blvd.
PIN Team Mail Stop 97
Covington, KY 41011-1424
A Form 3115 must not be
submitted by fax
Docket, Records, and User
Fee Branch receives,
initially controls, and
refers the Form 3115 to
the appropriate Associate
ofﬁce

.06 A completed Form 3115 must not be submitted by fax.
.07 A non-automatic Form 3115 is received and controlled by the Docket, Records, and User
Fee Branch, Legal Processing Division of the Associate Chief Counsel (Procedure and Administration) (CC:PA:LPD:DRU) if the required user fee is submitted with the Form 3115. Once
controlled, the Form 3115 is forwarded to the appropriate Associate ofﬁce for assignment and
processing.

Additional information

.08 Reply period

Reply period

(1) Reply period.
(a) Non-automatic Form 3115 - 21-day rule. In general, for a non-automatic Form 3115,
additional information requested by the Associate ofﬁce and additional information furnished to
the Associate ofﬁce by telephone must be furnished in writing within 21 calendar days from the
date of the information request. The Associate ofﬁce may impose a shorter reply period for a
request for additional information made after an initial request. See section 10.06 of this revenue
procedure for the 21-day rule for submitting information after any conference.
(b) Automatic change request – 30-day rule. In general, for an automatic change request,
additional information requested by the Associate ofﬁce, and additional information furnished to
the Associate ofﬁce by telephone or fax, must be furnished in writing (other than a fax) within
30 calendar days from the date of the information request. The Associate ofﬁce may impose a
shorter reply period for a request for additional information made after an initial request. See
section 10.06 of this revenue procedure for the 21-day rule for submitting information after any
conference with the Associate ofﬁce.

Sec. 9.06
January 3, 2017

Bulletin No. 2017–1

Extension of reply period

(2) Request for extension of reply period.
(a) Non-automatic Form 3115. For a non-automatic Form 3115, an additional period, not to
exceed 15 calendar days, to furnish information may be granted to a taxpayer. Any request for an
extension of time must be made in writing and submitted before the end of the original 21-day
period. If unusual circumstances close to the end of the 21-day period make a written request
impractical, the taxpayer should notify the Associate ofﬁce within the 21-day period that there is
a problem and that the written request for extension will be provided shortly. An extension of the
21-day period will be granted only if approved by a branch reviewer. An extension of the 21-day
period ordinarily will not be granted to furnish information requested on Form 3115. The taxpayer
will be told promptly, and later in writing, of the approval or denial of the requested extension.
If the extension request is denied, there is no right of appeal.
(b) Automatic change request. For an automatic change request, an additional period, not to
exceed 30 calendar days, to furnish information may be granted to a taxpayer. Any request for an
extension of time must be made in writing and submitted before the end of the original 30-day
period. If unusual circumstances close to the end of the 30-day period make a written request
impractical, the taxpayer should notify the Associate ofﬁce within the 30-day period that there is
a problem and that the written request for extension will be coming soon. An extension of the
30-day period will be granted only if approved by a branch reviewer. An extension of the 30-day
period ordinarily will not be granted to furnish information requested on Form 3115. The taxpayer
will be told promptly of the approval or denial of the requested extension. If the extension request
is denied, there is no right of appeal.

Penalties of perjury
statement for additional
information

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

Identifying information
included in additional
information

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

Faxing information request
and additional information

(5) Faxing information request and additional information. To facilitate prompt action on
a change in method of accounting ruling request, taxpayers may request that the Associate ofﬁce
request additional information by fax. See section 9.04(3) of this revenue procedure.
Taxpayers may also submit additional information by fax as soon as the information is
available. The Associate ofﬁce representative who requests additional information can provide a
telephone number to which the information can be faxed. A copy of the requested information and
an original signed penalties of perjury statement also must be mailed or delivered to the Associate
ofﬁce.

Address to which to send
additional information to
an Associate ofﬁce

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

Bulletin No. 2017–1

Sec. 9.06
January 3, 2017

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, ofﬁce symbols, and
room number of the Associate ofﬁce
representative who requested
the information]
P.O. Box 14095
Ben Franklin Station
Washington, DC 20044
For any other request for change in method of accounting, if a private delivery service is not
used, the additional information should be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, ofﬁce symbols, and
room number of the Associate ofﬁce
representative who requested the information]
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
(b) Address if private delivery service is used. For a request for a change in method of
accounting, if a private delivery service is used, the additional information should be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, ofﬁce symbols, and
room number of the Associate ofﬁce
representative who requested
the information]
1111 Constitution Ave., NW
Washington, DC 20224
Failure to timely submit
additional information to
an Associate ofﬁce

(7) If taxpayer does not timely submit additional information.
(a) Non-automatic Form 3115. In the case of a non-automatic Form 3115, if the required
information is not furnished to the Associate ofﬁce within the reply period, the Form 3115 will
not be processed and the case will be closed. The taxpayer or authorized representative will be
so notiﬁed in writing.
(b) Automatic change request. In the case of an automatic change request, if the required
information is not furnished to the Associate ofﬁce within the reply period, the request does not
qualify for the automatic change request procedure. In such a case, the Associate ofﬁce will notify
the taxpayer that consent to make the change in method of accounting is not granted.
(c) Submitting the additional information at a later date. If the taxpayer wants to submit the
additional information at a later date, the taxpayer must submit it with a new completed Form
3115 (and user fee, if applicable) for a year of change for which such new Form 3115 is timely
ﬁled under the applicable change in method of accounting procedure.

Sec. 9.08
January 3, 2017

Bulletin No. 2017–1

Circumstances in which
the taxpayer must notify
the Associate ofﬁce

.09 For a non-automatic Form 3115, the taxpayer must promptly notify the Associate ofﬁce if,
after the Form 3115 is ﬁled but before a change in method of accounting letter ruling is issued,
the taxpayer knows that—
(1) a Field ofﬁce has started an examination of the present or proposed accounting;
(2) a Field ofﬁce has started an examination of the proposed year of change;
(3) legislation that may affect the change in method of accounting has been introduced, see
section 9.03(7) of this revenue procedure; or
(4) another letter ruling request (including another Form 3115) has been submitted by the
taxpayer or a related party within the meaning of § 267 or a member of an afﬁliated group of
which the taxpayer is a member within the meaning of § 1504.

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

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

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

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

Non-automatic Form 3115
may be withdrawn or
Associate ofﬁce may
decline to issue a change in
method of accounting letter
ruling

.12

In general

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

Notiﬁcation of appropriate
Service ofﬁcial

(2) Notiﬁcation of appropriate Service ofﬁcial. If a taxpayer withdraws, or the Associate
ofﬁce declines to grant (for any reason), a request to change from or to an improper method of
accounting, the Associate ofﬁce will notify, in writing, the appropriate Service ofﬁcial in the
operating division that has examination jurisdiction of the taxpayer’s tax return and the Manager
of the Methods of Accounting and Timing Issue Practice Group, and may give its views on the
issues in the request to the Service ofﬁcial to consider in any later examination of the return.

Bulletin No. 2017–1

Sec. 9.10
January 3, 2017

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

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

How to check status of a
pending non-automatic
Form 3115

.13 The taxpayer or the taxpayer’s authorized representative may obtain information regarding
the status of a non-automatic Form 3115 by calling the person whose name and telephone number
are shown on the acknowledgement of receipt of the Form 3115.

Service is not bound by
informal opinion

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

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

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

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

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

Consent Agreement

.17 Ordinarily, for a non-automatic Form 3115, the Commissioner’s permission to change a
taxpayer’s method of accounting is set forth in a letter ruling (original and a Consent Agreement
copy). If the taxpayer agrees to the terms and conditions contained in the change in method of
accounting letter ruling, the taxpayer must sign and date the Consent Agreement copy of the letter
ruling in the appropriate space. The Consent Agreement must be signed by an individual with
authority to bind the taxpayer in such matters. The Consent Agreement copy must not be signed
by the taxpayer’s representative. The signed copy of the letter ruling will constitute an agreement
(Consent Agreement) within the meaning of Treas. Reg. § 1.481– 4(b). The signed Consent
Agreement copy of the letter ruling must be returned to the Associate ofﬁce within 45 calendar
days of the date of the letter ruling. In addition, a copy of the signed Consent Agreement generally
must be attached to the taxpayer’s income tax return for the year of change. See section
11.03(2)(a) of Rev. Proc. 2015–13 (or any successor). A taxpayer ﬁling its return electronically
should attach the Consent Agreement as a PDF ﬁle named “Form3115Consent.” If the taxpayer
has ﬁled its income tax return for the year of change before the letter ruling has been received and
the Consent Agreement has been signed and returned, the copy of the signed Consent Agreement
should be attached to the amended return for the year of change that the taxpayer ﬁles to
implement the change in method of accounting.
A taxpayer must secure the consent of the Commissioner before changing a method of
accounting for Federal income tax purposes. See Treas. Reg. § 1.446 –1(e)(2)(i). For a change in
method of accounting requested on a non-automatic Form 3115, a taxpayer has secured the
consent of the Commissioner when the taxpayer timely signs and returns the Consent Agreement
copy of the letter ruling from the Associate ofﬁce granting permission to make the change in
method of accounting and otherwise complies with Rev. Proc. 2015–13 (or any successor).
A taxpayer that timely ﬁles a non-automatic Form 3115 and takes the requested change in
method of accounting into account in its federal income tax return for the year of change (and any

Sec. 9.13
January 3, 2017

Bulletin No. 2017–1

subsequent taxable year) prior to receiving a letter ruling granting consent for that change has
made a change in method of accounting without obtaining the consent of the Commissioner as
required by § 446(e) (an “unauthorized change”). As provided in section 12.02 of Rev. Proc.
2015–13 (or any successor), the Director may determine when a change is not made in
compliance with all applicable provisions of Rev. Proc. 2015–13 (or any successor) and may deny
the unauthorized change. However, the Commissioner’s consent, issued subsequent to the
requested year of change, applies back to the year of change (and any subsequent taxable year)
as of the date of the letter ruling granting consent for that change if the taxpayer timely signs and
returns the Consent Agreement copy and implements the change in accordance with all applicable
provisions of Rev. Proc. 2015–13 (or any successor) and section 11 of this revenue procedure. If
the Commissioner does not grant consent under Rev. Proc. 2015–13 (or any successor) for the
change in method of accounting taken into account by the taxpayer, the taxpayer is subject to any
interest, penalties, or other adjustments resulting from improper implementation of the change.
See § 446(f). A taxpayer who timely ﬁles a non-automatic Form 3115 and takes the requested
change into account in the taxpayer’s Federal income tax return for the year of change (and any
subsequent taxable year), prior to receiving the letter ruling granting permission for the requested
change, may nevertheless rely on the letter ruling received from the Associate ofﬁce after it is
received, as provided in section 9.19 of this revenue procedure. If, however, the requested change
is modiﬁed or is withdrawn, denied, or similarly closed without the Associate ofﬁce having
granted consent, taxpayers are not relieved of any interest, penalties, or other adjustments
resulting from improper implementation of the change.
A copy of the change in
method of accounting letter
ruling is sent to
appropriate Service ofﬁcial

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

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

.19 A taxpayer may rely on a change in method of accounting letter ruling received from the
Associate ofﬁce, subject to certain conditions and limitations. See sections 7, 8, 10, 11, and 12 of
Rev. Proc. 2015–13 (or any successor).
A qualifying taxpayer complying timely with an automatic change request procedure may rely
on the consent of the Commissioner as provided in the automatic change request procedure to
change the taxpayer’s method of accounting, subject to certain conditions and limitations. See
generally sections 7, 8, 10, 11, and 12 of Rev. Proc. 2015–13 (or any successor). An Associate
ofﬁce may review a Form 3115 ﬁled under an automatic change request procedure and will notify
the taxpayer if additional information is needed or if consent is not granted to the taxpayer for the
requested change. See section 11 of Rev. Proc. 2015–13 (or any successor). Further, the Field
ofﬁce that has jurisdiction over the taxpayer’s return may review the Form 3115. See section 12
of Rev. Proc. 2015–13 (or any successor).

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

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

Associate ofﬁce discretion
to permit requested change
in method of accounting

.21 The Associate ofﬁce reserves the right to decline to process any non-automatic Form 3115 in
situations in which it would not be in the best interest of sound tax administration to permit the
requested change or it would not clearly reﬂect income. In this regard, the Associate ofﬁce will
consider whether the change in method of accounting would clearly and directly frustrate
compliance efforts of the Service in administering the income tax laws. See section 11.02 of Rev.
Proc. 2015–13 (or any successor).

Bulletin No. 2017–1

Sec. 9.13
January 3, 2017

List of automatic change in
method of accounting
request procedures

.22 For procedures regarding requests for an automatic change in method of accounting, refer
to the following published automatic change request procedures. The Commissioner’s consent to
an otherwise qualifying automatic change in method of accounting is granted only if the taxpayer
complies timely with the applicable automatic change request procedure.
The automatic change request procedures for obtaining a change in method of accounting
include:
(1) Rev. Proc. 2015–13, 2015–5 I.R.B. 419 (or any successor). Rev. Proc. 2015–13 applies to
the changes in method of accounting described in Rev. Proc. 2016 –29, 2016 –21 I.R.B. 880 (or
any successor).
(2) The following automatic change request procedures, which require a completed Form 3115,
provide both the procedures under which a change may be made automatically and the procedures
under which such change must be made:
Treas. Reg. § 1.166 –2(d)(3) (bank conformity for bad debts);
Treas. Reg. § 1.448 –1 (to an overall accrual method for the taxpayer’s ﬁrst taxable year it is
subject to § 448) (this change may also be subject to the procedures of Rev. Proc. 2015–13,
2015–5 I.R.B. 419 (or any successor));
Treas. Reg. § 1.458 –1 and –2 (exclusion for certain returned magazines, paperbacks, or
records);
Rev. Proc. 97– 43, 1997–2 C.B. 494 (§ 475 – electing out of certain exemptions from securities
dealer status); and
Rev. Proc. 91–51, 1991–2 C.B. 779 (§ 1286 – certain taxpayers under examination that sell
mortgages and retain rights to service the mortgages).
(3) The following automatic change request procedures, which do not require a completed
Form 3115, provide the type of change in method of accounting that may be made automatically
and also provide the procedures under which such change must be made:
Notice 96 –30, 1996 –1 C.B. 378 (§ 446 – change to comply with Statement of Financial
Accounting Standards No. 116);
Rev. Proc. 92–29, 1992–1 C.B. 748 (§ 461 – change in real estate developer’s method for
including costs of common improvements in the basis of property sold);
Rev. Proc. 98 –58, 1998 –2 C.B. 712 (certain taxpayers seeking to change to the installment
method of accounting under § 453 for alternative minimum tax purposes for certain deferred
payment sales contracts relating to property used or produced in the trade or business of farming);
Treas. Reg. § 1.472–2 (taxpayers changing to the last-in, ﬁrst-out (LIFO) inventory method);

Sec. 9.22
January 3, 2017

Bulletin No. 2017–1

Section 585(c) and Treas. Reg. §§ 1.585– 6 and 1.585–7 (large bank changing from the reserve
method of § 585); and
Rev. Proc. 92– 67, 1992–2 C.B. 429 (election under § 1278(b) to include market discount in
income currently or election under § 1276(b) to use constant interest rate to determine accrued
market discount).
(4) See Appendix G for the list of revenue procedures for automatic changes in accounting
period.
Other sections of this
revenue procedure that are
applicable to Form 3115

.23 In addition to this section 9, the following sections of this revenue procedure apply to
automatic change requests and non-automatic change requests:
1 (purpose of Rev. Proc. 2017–1);
2.01 (deﬁnition of “letter ruling”);
2.02 (deﬁnition of “closing agreement”);
2.05 (oral guidance);
3.01 (issues under the jurisdiction of the Associate Chief Counsel (Corporate));
3.02 (issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
Products));
3.03 (issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting));
3.04 (issues under the jurisdiction of the Associate Chief Counsel (International));
3.05 (issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special
Industries));
3.07 (issues under the jurisdiction of the Associate Chief Counsel (Tax Exempt and Government Entities));
5.03(2) (period of limitation when ﬁling a request for extensions of time for making an election
or for other relief under § 301.9100);
6.02 (letter rulings ordinarily not issued in certain areas because of the factual nature of the
problem);
6.05 (letter rulings ordinarily not issued to business associations or groups);

Bulletin No. 2017–1

Sec. 9.23
January 3, 2017

6.06 (letter rulings ordinarily not issued where the request does not address the tax status,
liability, or reporting obligations of the requester);
6.08 (letter rulings ordinarily not issued on Federal tax consequences of proposed legislation);
6.10 (letter rulings not issued on frivolous issues);
6.12 (letter rulings not issued on alternative plans or hypothetical situation);
7.01(1) (statement of facts and other information);
7.01(8) (statement of supporting authorities);
7.01(13) (authorized representatives);
7.01(14) (power of attorney and declaration of representative);
7.02(2) (power of attorney used to indicate recipient of a copy or copies of a letter ruling or a
determination letter);
7.02(4) (expedited handling);
7.05(2) (notify Associate ofﬁce if a return, amended return, or claim for refund is ﬁled while
request is pending and attach request to the return);
8.01 (receipt and control of the request, and referral to the appropriate Associate ofﬁce);
8.04 (not bound by informal opinion expressed);
10 (scheduling conferences);
15 (user fees);
16 (signiﬁcant changes to Rev. Proc. 2017–1);
17 (effect of Rev. Proc. 2017–1 on other documents);
18 (effective date of this revenue procedure);
Appendix A (schedule of user fees); and
Appendix G (revenue procedures and notices regarding letter ruling requests relating to speciﬁc
Code sections and subject matters).

Sec. 9.23
January 3, 2017

Bulletin No. 2017–1

SECTION 10. HOW ARE
CONFERENCES FOR
LETTER RULINGS
SCHEDULED?
Schedules a conference
if requested by taxpayer

.01 A taxpayer may request a conference regarding a letter ruling request. Normally, a
conference is scheduled only when the Associate ofﬁce considers it to be helpful in deciding the
case or when an adverse decision is indicated. If conferences are being arranged for more than one
request for a letter ruling involving the same taxpayer, they will be scheduled so as to cause the
least inconvenience to the taxpayer. As stated in sections 7.02(6) and 9.04(4) of this revenue
procedure, a taxpayer who wants to have a conference on the issue or issues involved should
indicate this in writing when, or soon after, ﬁling the request.
If a conference has been requested, the taxpayer or the taxpayer’s representative will be notiﬁed
by telephone, if possible, of the time and place of the conference, which must then be held within
21 calendar days after this contact. Instructions for requesting an extension of the 21-day period
and notifying the taxpayer or the taxpayer’s representative of the Associate ofﬁce’s approval or
denial of the request for extension are the same as those explained in section 8.05(2) (section
9.08(2)(a) for a change in method of accounting request) of this revenue procedure regarding
providing additional information.

Permits taxpayer one
conference of right

.02 A taxpayer is entitled, as a matter of right, to only one conference in the Associate ofﬁce,
except as explained under section 10.05 of this revenue procedure. This conference is normally
held at the branch level and is attended by a person who has the authority to sign the letter ruling
in his or her own name or for the branch chief.
When more than one branch has taken an adverse position on an issue in a letter ruling request
or when the position ultimately adopted by one branch will affect that adopted by another, a
representative from each branch with the authority to sign in his or her own name or for the branch
chief will attend the conference. If more than one subject is to be discussed at the conference, the
discussion will constitute a conference on each subject.
To have a thorough and informed discussion of the issues, the conference usually will be held
after the branch has had an opportunity to study the case. At the request of the taxpayer, the
conference of right may be held earlier.
No taxpayer has a right to appeal the action of a branch to an Associate Chief Counsel or to
any other ofﬁcial of the Service. But see section 10.05 of this revenue procedure for situations in
which the Associate ofﬁce may offer additional conferences.
In employment tax matters, if the service recipient (the ﬁrm) requests the letter ruling, the ﬁrm
is entitled to a conference. If the worker requests the letter ruling, both the worker and the ﬁrm
are entitled to a conference. See section 5.10 of this revenue procedure.

Disallows verbatim
recording of conferences

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

Makes tentative
recommendations on
substantive issues

.04 The senior Associate ofﬁce representative present at the conference ensures that the
taxpayer has the opportunity to present views on all the issues in question. An Associate ofﬁce
representative explains the Associate ofﬁce’s tentative decision on the substantive issues and the
reasons for that decision. If the taxpayer asks the Associate ofﬁce to limit the retroactive effect

Bulletin No. 2017–1

Sec. 10.02
January 3, 2017

of any letter ruling or limit the revocation or modiﬁcation of a prior letter ruling, an Associate
ofﬁce representative will discuss the recommendation concerning this issue and the reasons for
the recommendation. The Associate ofﬁce representatives will not make a commitment regarding
the conclusion that the Associate ofﬁce will ﬁnally adopt.
May offer additional
conferences

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

Requires written
conﬁrmation of
information presented at
conference

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

May schedule a presubmission conference

.07 Sometimes it will be advantageous to both the Associate ofﬁce and the taxpayer to hold a
conference before the taxpayer submits the letter ruling request to discuss substantive or
procedural issues relating to a proposed transaction. These conferences are held only if the
identity of the taxpayer is provided to the Associate ofﬁce, only if the taxpayer actually intends
to make a request, only if the request involves a matter on which a letter ruling is ordinarily
issued, and only at the discretion of the Associate ofﬁce and as time permits. For example, a
pre-submission conference will not be held on an income tax issue if, at the time the presubmission conference is requested, the identical issue is involved in the taxpayer’s return for an
earlier period and that issue is being examined by a Field ofﬁce. See section 6.01(1) of this
revenue procedure. A letter ruling request submitted following a pre-submission conference will
not necessarily be assigned to the branch that held the pre-submission conference. Also, when a
letter ruling request is not submitted following a pre-submission conference, the Associate ofﬁce
may notify, by memorandum, the appropriate Service ofﬁcial in the operating division that has
examination jurisdiction of the taxpayer’s tax return and may give its views on the issues raised
during the pre-submission conference. For LB&I taxpayers, a copy of the memorandum will be
sent to the Assistant Deputy Commissioner, Compliance Integration. This memorandum may
constitute Chief Counsel Advice, as deﬁned in § 6110(i), and may be subject to disclosure under
§ 6110.
(1) Taxpayer may request a pre-submission conference in writing or by telephone. A
taxpayer or the taxpayer’s representative may request a pre-submission conference in writing or by
telephone. If the taxpayer’s representative is requesting the pre-submission conference, a power of
attorney is required. A taxpayer should use Form 2848, Power of Attorney and Declaration of
Representative, to provide the representative’s authority. If multiple taxpayers and/or their authorized
representatives will attend or participate in the pre-submission conference, cross powers of attorney

Sec. 10.05
January 3, 2017

Bulletin No. 2017–1

(or, as appropriate, tax information authorizations) are required. If the taxpayer’s representative is
requesting the pre-submission conference by telephone, the Associate ofﬁce’s representative (see list
of phone numbers below) will provide the fax number to send the power of attorney (or, as
appropriate, tax information authorizations) prior to scheduling the pre-submission conference.
The request must identify the taxpayer and brieﬂy explain the primary issue so it can be assigned
to the appropriate branch. If submitted in writing, the request should also identify the Associate ofﬁce
expected to have jurisdiction over the request for a letter ruling. A written request for a pre-submission
conference should be sent to the appropriate address listed in section 7.04 of this revenue procedure.
To request a pre-submission conference by telephone, call:
(a) (202) 317-7700 (not a toll-free call) for matters under the jurisdiction of the Ofﬁce of
Associate Chief Counsel (Corporate);
(b) (202) 317-3900 (not a toll-free call) for matters under the jurisdiction of the Ofﬁce of
Associate Chief Counsel (Financial Institutions and Products);
(c) (202) 317-7002 (not a toll-free call) for matters under the jurisdiction of the Ofﬁce of
Associate Chief Counsel (Income Tax and Accounting);
(d) (202) 317-3800 (not a toll-free call) for matters under the jurisdiction of the Ofﬁce of
Associate Chief Counsel (International);
(e) (202) 317-3100 (not a toll-free call) for matters under the jurisdiction of the Ofﬁce of
Associate Chief Counsel (Passthroughs and Special Industries);
(f) (202) 317-3400 (not a toll-free call) for matters under the jurisdiction of the Ofﬁce of
Associate Chief Counsel (Procedure and Administration); or
(g) (202) 317-6000 (not a toll-free call) for matters under the jurisdiction of the Ofﬁce of
Associate Chief Counsel (Tax Exempt and Government Entities).
(2) Pre-submission conferences held in person or by telephone. Depending on the circumstances, pre-submission conferences may be held in person at the Associate ofﬁce or may be
conducted by telephone.
(3) Certain information required to be submitted to the Associate ofﬁce prior to the
pre-submission conference. Generally, the taxpayer will be asked to provide a statement of
whether the issue is an issue on which a letter ruling is ordinarily issued and a draft of the letter
ruling request or other detailed written statement explaining the proposed transaction, issue, and
legal analysis, before scheduling the pre-submission conference. The Associate ofﬁce will allow
taxpayers to submit a statement after the conference is scheduled at its discretion. If the taxpayer’s
authorized representative will attend or participate in the pre-submission conference, a power of
attorney is required.
(4) Discussion of substantive issues is not binding on the Service. Any discussion of
substantive issues at a pre-submission conference is advisory only, is not binding on the Service
in general or on the Ofﬁce of Chief Counsel in particular, and cannot be relied upon as a basis
for obtaining retroactive relief under the provisions of § 7805(b).

Bulletin No. 2017–1

Sec. 10.05
January 3, 2017

May schedule a conference
to be held by telephone

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

SECTION 11. WHAT
EFFECT WILL A
LETTER RULING
HAVE?
May be relied on
subject to limitations

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

Will not apply to another
taxpayer

.02 A taxpayer may not rely on a letter ruling issued to another taxpayer. See § 6110(k)(3).
However, shareholders and security holders of a corporation may rely on a letter ruling issued to
the corporation for the limited purpose of determining the proper treatment of directly related tax
items. For example, a letter ruling issued to a corporation with respect to the reorganization of that
corporation may be relied upon by the corporation’s shareholders in determining their basis in the
stock of the corporation following the reorganization. See also section 11.06(3) of this revenue
procedure.

Will be used by a Field
ofﬁce in examining the
taxpayer’s return

.03 When determining a taxpayer’s liability, the Field ofﬁce must ascertain whether—
(1) the conclusions stated in the letter ruling are properly reﬂected in the return;
(2) the representations upon which the letter ruling was based reﬂect an accurate statement of
the controlling facts;
(3) the transaction was carried out substantially as proposed; and
(4) there has been any change in the law that applies to the period during which the transaction
or continuing series of transactions were consummated.
If, when determining the liability, the Field ofﬁce ﬁnds that a letter ruling should be revoked
or modiﬁed, the ﬁndings and recommendations of the Field ofﬁce will be forwarded through the
appropriate Director to the Associate ofﬁce for consideration before further action is taken by
the Field ofﬁce. Such a referral to the Associate ofﬁce will be treated as a request for technical
advice and the provisions of Rev. Proc. 2017–2, this Bulletin, relating to requests for technical
advice will be followed. See section 13.02 of Rev. Proc. 2017–2, this Bulletin. Otherwise, the
Field ofﬁce should apply the letter ruling in determining the taxpayer’s liability. If a Field ofﬁce
having jurisdiction over a return or other matter proposes to reach a conclusion contrary to a letter
ruling previously issued to the taxpayer, it should coordinate the matter with the Associate ofﬁce.

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

Sec. 10.08
January 3, 2017

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

Bulletin No. 2017–1

discretionary authority under § 7805(b) to limit the retroactive effect of the revocation or
modiﬁcation.
A letter ruling may be revoked or modiﬁed by—
(1) a letter giving notice of revocation or modiﬁcation to the taxpayer to whom the letter ruling
was issued;
(2) the enactment of legislation or ratiﬁcation of a tax treaty;
(3) a decision of the United States Supreme Court;
(4) the issuance of temporary or ﬁnal regulations; or
(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement published in
the Internal Revenue Bulletin.
Consistent with these provisions, if a letter ruling relates to a continuing action or a series of
actions, it ordinarily will be applied until any one of the events described above occurs or until
it is speciﬁcally withdrawn.
Publication of a notice of proposed rulemaking will not affect the application of any letter
ruling issued under this revenue procedure.
Where a letter ruling is revoked or modiﬁed by a letter to the taxpayer, the letter will state
whether the revocation or modiﬁcation is retroactive. Where a letter ruling is revoked or modiﬁed
by the issuance of ﬁnal or temporary regulations or by the publication of a revenue ruling, revenue
procedure, notice, or other statement in the Internal Revenue Bulletin, the document may contain
a statement as to its retroactive effect on letter rulings.
Letter ruling revoked or
modiﬁed based on material
change in facts applied
retroactively

.05 An Associate ofﬁce will revoke or modify a letter ruling and apply the revocation
retroactively to the taxpayer for whom the letter ruling was issued or to a taxpayer whose tax
liability was directly involved in the letter ruling if—
(1) there has been a misstatement or omission of controlling facts;
(2) the facts at the time of the transaction are materially different from the controlling facts on
which the letter ruling was based; or
(3) the transaction involves a continuing action or series of actions and the controlling facts
change during the course of the transaction.

Not otherwise generally
revoked or modiﬁed
retroactively

Bulletin No. 2017–1

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

Sec. 10.08
January 3, 2017

(1) there has been no change in the applicable law;
(2) the letter ruling was originally issued for a proposed transaction; and
(3) the taxpayer directly involved in the letter ruling acted in good faith in relying on the letter
ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer’s
detriment. For example, the tax liability of each shareholder is directly involved in a letter ruling
on the reorganization of a corporation. Depending on all facts and circumstances, the shareholders’ reliance on the letter ruling may be in good faith. The tax liability of a member of an industry,
however, is not directly involved in a letter ruling issued to another member of the same industry.
Therefore, a nonretroactive revocation or modiﬁcation of a letter ruling to one member of an
industry will not extend to other members of the industry who have not received letter rulings. By
the same reasoning, a tax practitioner may not extend to one client the non-retroactive application
of a revocation or modiﬁcation of a letter ruling previously issued to another client.
If a letter ruling is revoked or modiﬁed by a letter to the taxpayer with retroactive effect, the
letter to the taxpayer will, except in fraud cases, state the grounds on which the letter ruling is
being revoked or modiﬁed and explain the reasons why it is being revoked or modiﬁed
retroactively.
Retroactive effect of
revocation or modiﬁcation
applied to a particular
transaction

.07 A letter ruling issued on a particular transaction represents a holding of the Service on that
transaction only. It will not apply to a similar transaction in the same year or any other year.
Except in unusual circumstances, the application of that letter ruling to the transaction will not be
affected by the later issuance of regulations (either temporary or ﬁnal) if conditions (1) through
(3) in section 11.06 of this revenue procedure are met.
If a letter ruling on a transaction is later found to be in error or no longer in accord with the
position of the Service, it will not protect a similar transaction of the taxpayer in the same year
or later year.

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

.08 If a letter ruling is issued covering a continuing action or series of actions and the letter
ruling is later found to be in error or no longer in accord with the position of the Service, the
appropriate Associate Chief Counsel ordinarily will limit the retroactive effect of the revocation
or modiﬁcation to a date that is not earlier than that on which the letter ruling is revoked or
modiﬁed. For example, the retroactive effect of the revocation or modiﬁcation of a letter ruling
covering a continuing action or series of actions ordinarily would be limited in the following
situations when the letter ruling is in error or no longer in accord with the position of the Service:
(1) A taxpayer received a letter ruling that certain payments are excludable from gross income
for Federal income tax purposes. The taxpayer ordinarily would be protected only for the payment
received after the letter ruling was issued and before the revocation or modiﬁcation of the letter
ruling.
(2) A taxpayer rendered a service or provided a facility that is subject to the excise tax on
services or facilities and, in relying on a letter ruling received, it did not pass the tax on to the user
of the service or the facility.
(3) An employer incurred liability under the Federal Insurance Contributions Act but, in relying
on a letter ruling received, neither collected the employee tax nor paid the employee and employer
taxes under the Federal Insurance Contributions Act. The retroactive effect would be limited for

Sec. 11.07
January 3, 2017

Bulletin No. 2017–1

both the employer and employee tax. The limitation would be conditioned on the employer
furnishing wage data, as may be required by § 31.6011(a)–1 of the Treasury Regulations.
Generally not retroactively
revoked or modiﬁed if
related to sale or lease
subject to excise tax

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

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

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

Taxpayer may request that
retroactivity be limited

.11 Under § 7805(b), the Service may prescribe any extent to which a revocation or modiﬁcation of a letter ruling will be applied without retroactive effect.
A taxpayer to whom a letter ruling has been issued may request that the appropriate Associate
Chief Counsel limit the retroactive effect of any revocation or modiﬁcation of the letter ruling.
For letter rulings governed by Rev. Proc. 2017– 4, this Bulletin, a taxpayer to whom a letter
ruling has been issued by the Commissioner, Tax Exempt and Government Entities may request
limiting the retroactive effect of any revocation or modiﬁcation of the letter ruling pursuant to the
procedures set forth in section 29 of Rev. Proc. 2017– 4, this Bulletin.

Format of request

(1) Request for relief under § 7805(b) must be made in required format. A request to limit
the retroactive effect of the revocation or modiﬁcation of a letter ruling must be in the general
form of, and meet the general requirements for, a letter ruling request. These requirements are
given in section 7 of this revenue procedure. Speciﬁcally, the request must also
(a) state that it is being made under § 7805(b);
(b) state the relief sought;
(c) explain the reasons and arguments in support of the relief requested (including a discussion
of section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue
procedure, and any other factors as they relate to the taxpayer’s particular situation); and
(d) include any documents bearing on the request.
A request that the Service limit the retroactive effect of a revocation or modiﬁcation of a letter
ruling may be made in the form of a separate request for a letter ruling when, for example, a
revenue ruling has the effect of modifying or revoking a letter ruling previously issued to the
taxpayer or when the Service notiﬁes the taxpayer of a change in position that will have the effect
of revoking or modifying the letter ruling.
When notice is given by the Field ofﬁce during an examination of the taxpayer’s return or by
Appeals, during consideration of the taxpayer’s return before Appeals, a request to limit

Bulletin No. 2017–1

Sec. 11.07
January 3, 2017

retroactive effect must be made in the form of a request for technical advice as explained in
section 14.02 of Rev. Proc. 2017–2, this Bulletin.
When germane to a pending letter ruling request, a request to limit the retroactive effect of a
revocation or modiﬁcation of a letter ruling may be made as part of the request for the letter
ruling, either initially or at any time before the letter ruling is issued. When a letter ruling that
concerns a continuing transaction is revoked or modiﬁed by, for example, a subsequent revenue
ruling, a request to limit retroactive effect must be made before the examination of the return that
contains the transaction that is the subject of the letter ruling request.
Request for conference

(2) Taxpayer may request a conference on application of § 7805(b). A taxpayer who
requests the application of § 7805(b) in a separate letter ruling request has the right to a
conference in the Associate ofﬁce as explained in sections 10.02, 10.04, and 10.05 of this revenue
procedure. If the request is made initially as part of a pending letter ruling request or is made
before the conference of right is held on the substantive issues, the § 7805(b) issue will be
discussed at the taxpayer’s one conference of right as explained in section 10.02 of this revenue
procedure. If the request for the application of § 7805(b) relief is made as part of a pending letter
ruling request after a conference has been held on the substantive issue and the Associate ofﬁce
determines that there is justiﬁcation for having delayed the request, the taxpayer is entitled to one
conference of right concerning the application of § 7805(b), with the conference limited to
discussion of this issue only.

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

Directors issue determination letters only if the question presented is speciﬁcally answered by
a statute, tax treaty, or regulations, a conclusion stated in a revenue ruling, or an opinion or court
decision that represents the position of the Service.
Under no circumstances will a Director issue a determination letter unless it is clearly shown
that the request concerns a return that has been ﬁled or is required to be ﬁled and over which the
Director has, or will have, examination jurisdiction.
A determination letter does not include assistance provided by the U.S. competent authority
pursuant to the mutual agreement procedure in tax treaties as set forth in Rev. Proc. 2015– 40,
2015–35 I.R.B. 236.

In income and gift tax
matters

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

In estate tax matters

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

In generation-skipping
transfer tax matters

.03 In generation-skipping transfer tax matters, Directors issue determination letters in response
to written requests affecting the generation-skipping transfer tax returns over which they have

Sec. 12
January 3, 2017

Bulletin No. 2017–1

examination jurisdiction. They do not issue determination letters on matters concerning the
application of the generation-skipping transfer tax before the distribution or termination takes
place.
In employment and excise
tax matters

.04 In employment and excise tax matters, Directors issue determination letters in response to
taxpayers’ written requests on completed transactions over which they have examination jurisdiction.
All determination letter requests regarding employment status (employer/employee relationship) made by taxpayers that are not Federal agencies and instrumentalities or their workers, must
be submitted to the Internal Revenue Service at the address set forth on the current instructions
for Form SS– 8, Determination of Worker Status for Purposes of Federal Employment Taxes and
Income Tax Withholding.
If the service recipient (the ﬁrm) requests the determination regarding employment status, the
ﬁrm will receive any determination letter issued. A copy will also be sent to any workers
identiﬁed in the request. If the worker makes the request and the ﬁrm has been contacted for
information, both the worker and the ﬁrm will receive any issued determination letter. The
determination letter will apply to any individuals engaged by the ﬁrm under substantially similar
circumstances. See section 5.10 of this revenue procedure for requests regarding employment
status made by Federal agencies and instrumentalities or their workers.

Requests concerning
income, estate, or gift tax
returns

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

Review of determination
letters

.06 Determination letters issued under sections 12.01 through 12.04 of this revenue procedure
are not reviewed by the Associate ofﬁces before they are issued. If a taxpayer believes that a
determination letter of this type is in error, the taxpayer may ask the Director to reconsider the
matter or to request technical advice from an Associate ofﬁce as explained in Rev. Proc. 2017–2,
this Bulletin.
The preceding sentence does not apply to SS– 8 requests under section 12.04. If a taxpayer
disagrees with a determination of employment status made in response to an SS– 8 request, the
taxpayer may request that the SS– 8 Program reconsider the determination letter if the taxpayer
has additional information concerning the relationship that was not part of the original submission
or the taxpayer can identify facts that were part of the original submission that the taxpayer thinks
were not fully considered.

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

.01 A determination letter issued by a Director has the same effect as a letter ruling issued to
a taxpayer under section 11 of this revenue procedure.
If a Field ofﬁce proposes to reach a conclusion contrary to that expressed in a determination
letter, that ofﬁce need not refer the matter to the Associate ofﬁce as is required for a letter ruling
found to be in error. The Field ofﬁce must, however, refer the matter to the Associate ofﬁce

Bulletin No. 2017–1

Sec. 12.06
January 3, 2017

through the appropriate Director if it desires to have the revocation or modiﬁcation of the
determination letter limited under § 7805(b), except if the determination letter has been issued by
the Commissioner, Tax Exempt and Government Entities. See Rev. Proc. 2017– 4 and Rev. Proc.
2017–5.
Taxpayer may request that
retroactive effect of
revocation or modiﬁcation
be limited

.02 Under § 7805(b), the Service may prescribe the extent to which a revocation or modiﬁcation of a determination letter will be applied without retroactive effect. A Director does not have
authority under § 7805(b) to limit the revocation or modiﬁcation of the determination letter.
Therefore, if the Field ofﬁce proposes to revoke or modify a determination letter, the taxpayer
may request limitation of the retroactive effect of the revocation or modiﬁcation by asking the
Director that issued the determination letter to seek technical advice from the Associate ofﬁce. See
section 14.02 of Rev. Proc. 2017–2, this Bulletin.
A taxpayer to whom a determination letter has been issued by the Commissioner, Tax Exempt
and Government Entities may request limiting the retroactive effect of any revocation or
modiﬁcation of the determination letter pursuant to the procedures set forth in section 23 of Rev.
Proc. 2017– 4, or section 12.04 of 2017–5, this Bulletin.

Format of request

(1) Request for relief under § 7805(b) must be made in required format. A taxpayer’s
request to limit the retroactive effect of the revocation or modiﬁcation of the determination letter
must be in the form of, and meet the general requirements for, a technical advice request. See
section 14.02 of Rev. Proc. 2017–2, this Bulletin. The request must also—
(a) state that it is being made under § 7805(b);
(b) state the relief sought;
(c) explain the reasons and arguments in support of the relief sought (including a discussion of
section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue
procedure, and any other factors as they relate to the taxpayer’s particular situation); and
(d) include any documents bearing on the request.

Request for conference

(2) Taxpayer may request a conference on application of § 7805(b). When technical advice
is requested regarding the application of § 7805(b), the taxpayer has the right to a conference with
the Associate ofﬁce to the same extent as does any taxpayer who is the subject of a technical
advice request. See section 14.04 of Rev. Proc. 2017–2, this Bulletin.

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

Sec. 13.02
January 3, 2017

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

Bulletin No. 2017–1

Directors will also refer to the appropriate Associate ofﬁce any request for a determination
letter that in their judgment should have the attention of the Associate ofﬁce. The Field ofﬁce will
notify the taxpayer that the matter has been referred.
No-rule areas

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

Requests for letter rulings

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

Letter ruling request
mistakenly sent to a
Director

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

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

.01 Section 7528 was added to the Internal Revenue Code by section 202 of the Extension of
the Temporary Assistance for Needy Families Block Grant Program, Pub. L. No. 108 – 89,
amended by section 891(a) of the American Jobs Creation Act of 2004, Pub. L. 108 –357, and was
made permanent by section 8244 of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery,
and Iraq Accountability Appropriations Act, 2007, Pub. L. No. 110 –28.
Section 7528 provides that the Secretary of the Treasury or delegate (the “Secretary”) shall
establish a program requiring the payment of user fees for requests to the Service for letter rulings,
opinion letters, determination letters, and other similar requests. The fees charged under the
program are to: (1) vary according to categories or subcategories established by the Secretary; (2)
be determined after taking into account the average time for, and difﬁculty of, complying with
requests in each category or subcategory; and (3) be payable in advance. The Secretary is to
provide for exemptions and reduced fees under the program as the Secretary determines to be
appropriate, but the average fee applicable to each category or subcategory must not be less than
the amount speciﬁed in § 7528(b)(3).

Requests to which a user
fee applies

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

(1) letter rulings (including non-automatic Forms 3115, Application for Change in Accounting
Method), determination letters, and advance pricing agreements;

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

Bulletin No. 2017–1

Sec. 14.02
January 3, 2017

(3) renewal of advance pricing agreements; and

(4) reconsideration of letter rulings or determination letters.

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

Requests to which a user
fee does not apply

.03 User fees do not apply to—

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

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

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

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

(5) requests for harassment campaign letter rulings under Section 6104(d)(4);

(6) request for Neighborhood Land Use Rule letter rulings under Section 514(b)(3);

(7) information letters; or

(8) late elections under § 338 that qualify under the automatic provisions in sections 3, 4, and
5 of Rev. Proc. 2003–33, 2003–1 C.B. 803.
Exemptions from the user
fee requirements

.04 The user fee requirements do not apply to—

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

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

Sec. 15.03
January 3, 2017

Bulletin No. 2017–1

Fee schedule

.05 The schedule of user fees is provided in Appendix A of this revenue procedure. For the user
fee requirements applicable to—
(1) requests for advance pricing agreements or renewals of advance pricing agreements, see
section 3.05 of Rev. Proc. 2015– 41, 2015–35 I.R.B. 263; or
(2) requests for letter rulings, determination letters, etc. under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division (which no longer include changes in
method of accounting), see Rev. Proc. 2017– 4 and Rev. Proc. 2017–5, this Bulletin.

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

.06
(1) Requests involving several ofﬁces. If a request dealing with only one transaction involves
more than one ofﬁce within the Service (for example, one issue is under the jurisdiction of the
Associate Chief Counsel (Passthroughs and Special Industries) and another issue is under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division), only one fee
applies, namely the highest fee that otherwise would apply to each of the ofﬁces involved. See
Rev. Proc. 2017– 4 and Rev. Proc. 2017–5, this Bulletin, for the user fees applicable to issues
under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division.
(2) Requests involving several fee categories. If a request dealing with only one transaction
involves more than one fee category, only one fee applies, the highest fee that otherwise would
apply to each of the categories involved.
(3) Requests involving several issues. If a request dealing with only one transaction involves
several issues, a request for a change in method of accounting dealing with only one item or
submethod of accounting involves several issues, or a request for a change in accounting period
dealing with only one item involves several issues, the request is treated as one request. Therefore,
only one fee applies, i.e., the fee that applies to the particular category or subcategory involved.
The addition of a new issue relating to the same transaction, item, or submethod will not result
in an additional fee unless the issue places the transaction, item, or submethod in a higher fee
category. So long as the issues all relate to a single transaction, a request that the Service address
one or more of the issues in a separate ruling will not result in an additional fee.
(4) Requests involving several unrelated transactions. If a request involves several unrelated
transactions, a request for a change in method of accounting involves several unrelated items or
submethods of accounting, or a request for a change in accounting period involves several
unrelated items, each transaction or item is treated as a separate request. As a result, a separate
fee will apply for each unrelated transaction, item, or submethod. An additional fee will apply if
the request is changed by the addition of an unrelated transaction, item, or submethod not
contained in the initial request. An example of a request involving unrelated transactions is a
request involving relief under § 301.9100 –3 and the underlying issue.
(5) Requests involving several entities. Each entity involved in a transaction (for example, a
reorganization) that desires a separate letter ruling in its own name must pay a separate fee
regardless of whether the transaction or transactions may be viewed as related. But see section
15.07 of this revenue procedure.
(6) Requests made by married taxpayers who ﬁle jointly. A married couple ﬁling a joint
return may jointly request a single letter ruling and pay a single user fee if the issues arise from
a joint activity or if the spouses would otherwise qualify for substantially identical letter rulings.

Bulletin No. 2017–1

Sec. 15.05
January 3, 2017

If a spouse desires a ruling to be individually issued to him or her, a separate fee must be paid
for each individual request. But see section 15.07 of this revenue procedure (providing a reduced
user fee for substantially identical letter rulings or substantially identical changes in method of
accounting).
Applicable user fee for
requests for substantially
identical letter rulings or
identical changes in
method of accounting

.07
(1) In general. The user fees provided in paragraph (A)(5) of Appendix A of this revenue
procedure apply to the situations described in sections 15.07(2) and 15.07(4) of this revenue
procedure. To assist in the processing of these user fee requests, all letter ruling requests
submitted under this section 15.07 should—
(a) except for non-automatic Forms 3115, include the following typed or printed language at
the top of the letter ruling request: “REQUEST FOR USER FEE UNDER SECTION 15.07 OF
REV. PROC. 2017–1”;
(b) list on the ﬁrst page of the submission all taxpayers and entities, and separate and distinct
trades or businesses, including qualiﬁed subchapter S subsidiaries (QSubs) or single member
limited liability companies (single member LLCs), requesting a letter ruling (including the
taxpayer identiﬁcation number and the amount of user fee submitted for each taxpayer, entity, or
separate and distinct trade or business); and
(c) make one payment to cover all user fees.
If the Service determines that the letter ruling requests do not qualify for the user fee provided
in paragraph (A)(5) of Appendix A of this revenue procedure, the Service will request the proper
fee. See section 15.09 of this revenue procedure.
(2) Substantially identical letter rulings. The user fee provided in paragraph (A)(5)(a) of
Appendix A of this revenue procedure applies to a taxpayer or taxpayers requesting substantially
identical letter rulings (including accounting period, method of accounting, and earnings and
proﬁts requests other than those submitted on Form 1128, Application to Adopt, Change, or
Retain a Tax Year, Form 2553, Election by a Small Business Corporation, Form 3115, Application for Change in Accounting Method, and Form 5452, Corporate Report of Nondividend
Distributions) in the following situations:
(a) The taxpayers to whom the letter rulings will be issued are multiple entities with a common
member or sponsor, or multiple members of a common entity; or
(b) The taxpayers to whom the letter rulings will be issued are parties engaged together in the
same transaction affecting all requesting taxpayers.
To qualify for this reduced user fee, all information and underlying documents must be
substantially identical and all letter ruling requests must be submitted at the same time in a single
submission. In addition, the taxpayer(s) must state that the letter ruling requests and all information and underlying documents are substantially identical, and must speciﬁcally identify the
extent to which the letter ruling requests, information, and underlying documents are not identical.
If a taxpayer or taxpayers requesting reduced user fees pursuant to this section 15.07(2) also
request a pre-submission conference pursuant to section 10.07, the taxpayer(s) should notify the

Sec. 15.07
January 3, 2017

Bulletin No. 2017–1

Associate ofﬁce at or before the pre-submission conference that the taxpayer(s) intend to request
reduced user fees pursuant to this paragraph. At the pre-submission conference, the taxpayer(s)
should discuss with the Associate ofﬁce how the letter ruling requests will satisfy the requirements of this paragraph.
The reduced fee for substantially identical letter rulings is applicable to taxpayers requesting
closing agreements as described in section 2.02 of this revenue procedure, assuming they meet the
requirements described above for letter rulings.
(3) Substantially identical plans under § 25(c)(2)(B). The user fee provided in paragraph
(A)(5)(c) of Appendix A of this revenue procedure shall apply to a taxpayer who submits
substantially identical plans for administering the 95-percent requirement of § 143(d)(1) following the submission and approval of an initial plan for administering the requirement. The request
for subsequent approvals of substantially identical plans must (1) state that a prior plan was
submitted and approved and include a copy of the prior plan and approval; (2) state that the
subsequent plan is substantially identical to the approved plan; and (3) describe any differences
between the approved plan and the subsequent plan.
(4) Identical changes in method of accounting and related § 301.9100 letter rulings. A
common parent of a consolidated group, or other taxpayer, is eligible for the user fees provided
in paragraphs (A)(5)(b) and (d) of Appendix A of this revenue procedure when requesting an
identical change in method of accounting on a single Form 3115, Application for Change in
Accounting Method, or an extension of time to ﬁle Form 3115 under § 301.9100 –3 for the
identical change in method of accounting, for two or more of the following in any combination—
(a) members of that consolidated group;
(b) separate and distinct trades or businesses (for purposes of § 1.446 –1(d)) of that taxpayer or
member(s) of that consolidated group. Separate and distinct trades or businesses, include QSubs
and single member LLCs;
(c) partnerships that are wholly-owned within that consolidated group; or
(d) controlled foreign corporations (CFCs) and noncontrolled § 902 corporations (10/50
corporations) that do not engage in a trade or business within the United States where (i) all
controlling U.S. shareholders of the CFCs and all majority domestic corporate shareholders of the
10/50 corporations, as applicable, are members of that consolidated group; or (ii) the taxpayer is
the sole controlling U.S. shareholder of the CFCs or the sole domestic corporate shareholder of
that 10/50 corporation.
To qualify as an identical change in method of accounting, the multiple entities wholly owned
or controlled by a consolidated group or other taxpayer, or separate and distinct trades or
businesses (that is, the applicants) must request to change from an identical present method of
accounting to an identical proposed method of accounting. All aspects of the requested change in
method of accounting must be identical, including the year of change, the present and proposed
methods, the underlying facts and the authority for the request, except for the § 481(a) adjustments. If the Associate ofﬁce determines that the requested changes in method of accounting are
not identical, additional user fees will be required before any letter ruling is issued.
The taxpayer or common parent must, for each applicant for which the change in method of
accounting is being requested, attach to the Form 3115 a schedule providing the name, employer

Bulletin No. 2017–1

Sec. 15.07
January 3, 2017

identiﬁcation number (where applicable), and § 481(a) adjustment. If the request is on behalf of
eligible CFCs or 10/50 corporations, the taxpayer or common parent must attach a statement that
“[a]ll controlling U.S. shareholders (as deﬁned in § 1.964 –1(c)(5)(i)) of all the CFCs to which the
request relates are members of the common parent’s consolidated group,” “[a]ll majority domestic
corporate shareholders (as deﬁned in § 1.964 –1(c)(5)(ii)) of all the 10/50 corporations to which
the request relates are members of the common parent’s consolidated group,” that “the taxpayer
ﬁling the request is the sole controlling U.S. shareholder (as deﬁned in § 1.964 –1(c)(5)) of the
CFCs to which the request relates,” or “the taxpayer ﬁling the request is the sole domestic
corporate shareholder (as deﬁned in § 1.964 –1(c)(5)) of the 10/50 corporations to which the
request relates,” as applicable. If the request is on behalf of eligible partnerships, the common
parent must attach a statement that “[a]ll partnerships to which the request relates are whollyowned by members of the common parent’s consolidated group.”
In the case of a § 301.9100 request for an extension of time to ﬁle a Form 3115 requesting an
identical change in method of accounting for multiple members of a consolidated group and/or
multiple separate and distinct trades or businesses of a taxpayer or member(s) of the consolidated
group, or multiple eligible CFCs or 10/50 corporations (applicants), the taxpayer or common
parent must submit the information required in the preceding paragraph in addition to the
information required by section 5.03 of this revenue procedure.
Method of payment

.08 Each request to the Service for a letter ruling, determination letter, advance pricing
agreement, closing agreement described in paragraph (A)(3)(d) of Appendix A of this revenue
procedure, or reconsideration of a letter ruling or determination letter must be accompanied by
full payment. The IRS is transitioning towards using www.pay.gov as the exclusive means for
making payments for user fees in this revenue procedure. An announcement will provide more
details about the transition period to www.pay.gov, which will accept credit card payments under
$25,000 and direct debit through a checking or savings account. During the transition period,
payment may be made by either www.pay.gov or by sending a check or money order in U.S.
dollars, payable to the Internal Revenue Service, in the appropriate amount.
User fees for Statement of Value requests submitted pursuant to Rev. Proc. 96 –15 must be paid
by direct debit from a checking or savings account through www.pay.gov. Payment conﬁrmations
are provided through the www.pay.gov portal and should be submitted with the Statement of
Value request. Art Appraisal Services will not consider a Statement of Value request complete,
and will hold the request in suspense, until the correct user fee is paid through the www.pay.gov
website. Additional information about Statement of Value requests can be found at www.irs.gov/
Individuals/Art-Appraisal-Services. Information on payment submission can be found under
Frequently Asked Questions at www.pay.gov.

Effect of nonpayment or
payment of incorrect
amount

.09 If a request is not matched with full payment through www.pay.gov or accompanied by full
payment, the ofﬁce within the Service that is responsible for issuing the letter ruling, determination letter, information letter, advance pricing agreement, closing agreement, or reconsideration
of a letter ruling or determination letter generally will exercise discretion in deciding whether to
immediately return the request. If a request is not immediately returned, the taxpayer will be
contacted and given a reasonable amount of time to submit the proper fee. If the proper fee is not
received within a reasonable amount of time, the entire request will then be returned. The Service
will usually defer substantive consideration of a request until proper payment has been received.
The return of a request to the taxpayer may adversely affect substantive rights if the request is not
perfected and resubmitted to the Service within 30 calendar days of the date of the cover letter
returning the request.
If a payment is made for more than the correct amount, the request will be accepted and the
amount of the excess payment will be returned to the taxpayer.

Sec. 15.08
January 3, 2017

Bulletin No. 2017–1

Refunds of user fee

.10 In general, the user fee will not be refunded unless the Service declines to rule on all issues
for which a ruling is requested.
(1) The following situations are examples of situations in which the user fee will not be
refunded:
(a) The request for a letter ruling, determination letter, etc. is withdrawn at any time subsequent
to its receipt by the Service unless the only reason forwithdrawal is that the Service has advised
the taxpayer that a higher user fee than was sent with the request is applicable and the taxpayer
is unwilling to pay the higher fee.
(b) The request is procedurally deﬁcient, although accompanied by the proper fee or an
overpayment, and is not timely perfected. When there is a failure to timely perfect the request, the
case will be considered closed and the failure to perfect will be treated as a withdrawal for
purposes of this revenue procedure. See section 8.05(3) of this revenue procedure.
(c) The Associate ofﬁce notiﬁes the taxpayer that the Associate ofﬁce will not issue the letter
ruling and has closed the case as a result of the taxpayer’s failure to submit timely the additional
information requested by the Associate ofﬁce. The failure to submit the additional information
will be treated as a withdrawal for purposes of this revenue procedure. See section 8.05(3) of this
revenue procedure (section 9.08(7) for a request for a change in method of accounting).
(d) A letter ruling, determination letter, etc. is revoked in whole or in part at the initiative of
the Service. The fee paid at the time the original letter ruling, determination letter, etc. was
requested will not be refunded.
(e) The request contains several issues, and the Service rules on some, but not all, of the issues.
The highest fee applicable to the issues on which the Service rules will not be refunded.
(f) The taxpayer asserts that a letter ruling the taxpayer received covering a single issue is
erroneous or not responsive (other than an issue on which the Associate ofﬁce has declined to
rule) and requests reconsideration. The Associate ofﬁce, upon reconsideration, does not agree that
the letter ruling is erroneous or is not responsive. The fee accompanying the request for
reconsideration will not be refunded.
(g) The situation is the same as described in paragraph (f) of this section 15.10(1) except that
the letter ruling covered several unrelated transactions. The Associate ofﬁce, upon reconsideration, does not agree with the taxpayer that the letter ruling is erroneous or is not responsive for
all of the transactions, but does agree that it is erroneous as to one transaction. The fee
accompanying the request for reconsideration will not be refunded except to the extent applicable
to the transaction for which the Associate ofﬁce agrees the letter ruling was in error.
(h) The request is for a supplemental letter ruling, determination letter, etc. concerning a change
in facts (whether signiﬁcant or not) relating to the transaction on which the Service ruled.
(i) The request is for reconsideration of an adverse or partially adverse letter ruling or a ﬁnal
adverse determination letter, and the taxpayer submits arguments and authorities not submitted
before the original letter ruling or determination letter was issued.

Bulletin No. 2017–1

Sec. 15.10
January 3, 2017

(2) The following situations are examples of situations in which the user fee will be
refunded:
(a) In a situation to which section 15.10(1)(i) of this revenue procedure does not apply, the taxpayer
asserts that a letter ruling the taxpayer received covering a single issue is erroneous or is not responsive
(other than an issue on which the Associate ofﬁce declined to rule) and requests reconsideration. Upon
reconsideration, the Associate ofﬁce agrees that the letter ruling is erroneous or is not responsive. The
fee accompanying the taxpayer’s request for reconsideration will be refunded.
(b) In a situation to which section 15.10(1)(i) of this revenue procedure does not apply, the
taxpayer requests a supplemental letter ruling, determination letter, etc. to correct a mistake that
the Service agrees it made in the original letter ruling, determination letter, etc. such as a mistake
in the statement of facts or in the citation of a Code section. Once the Service agrees that it made
a mistake, the fee accompanying the request for the supplemental letter ruling, determination
letter, etc. will be refunded.
(c) The taxpayer requests and is granted relief under § 7805(b) in connection with the
revocation in whole or in part, of a previously issued letter ruling, determination letter, etc. The
fee accompanying the request for relief will be refunded.
(d) In a situation to which section 15.10(1)(e) of this revenue procedure applies, the taxpayer
requests reconsideration of the Service’s decision not to rule on an issue. Once the Service agrees
to rule on the issue, the fee accompanying the request for reconsideration will be refunded.
(e) The letter ruling is not issued and taking into account all the facts and circumstances, including
the Service’s resources devoted to the request, the responsible Associate Chief Counsel determines a
refund is appropriate. This determination is at the sole discretion of the Associate Chief Counsel.
(f) Refunds based on grounds listed in section 15.10(2)(a) through (d) of this revenue procedure are
approved at the branch level by a reviewer or branch chief. Refunds based on the ground listed in
section 15.10(2)(e) of this revenue procedure must be approved by the Associate Chief Counsel.
Request for
reconsideration of user fee

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

If the matter involves
primarily:

Mark for the attention of:

Associate Chief Counsel
(Corporate) letter ruling
requests

Associate Chief Counsel (Corporate)

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

Associate Chief Counsel (Financial Institutions and Products)

Sec. 15.11
January 3, 2017

Bulletin No. 2017–1

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

Associate Chief Counsel (Income Tax and Accounting)

Associate Chief Counsel
(International) letter ruling
requests

Associate Chief Counsel (International)

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

Associate Chief Counsel (Passthroughs and Special Industries)

Associate Chief Counsel
(Procedure and
Administration) letter
ruling requests

Associate Chief Counsel (Procedure and Administration)

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

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

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

Assistant Deputy Commissioner, Compliance Integration

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

The appropriate SB/SE ofﬁcial listed in Appendix F

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

Director,
Director,
Director,
Director,
Director,

Employee Plans Examinations
Exempt Organizations Examinations
Federal, State & Local Governments
Tax Exempt Bonds
Indian Tribal Governments

(Add name of Field ofﬁce handling the request)
SECTION 16. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 2016 –1?

Editorial changes have been made throughout.
Section 2.01 was amended to clarify that letter rulings may be subject to exchange of
information under U.S. tax treaties or tax information exchange agreements.
Section 10.07(3) was amended to provide that taxpayers generally should submit a statement
of whether the issue that is the subject of a request is an issue on which a letter ruling is ordinarily
issued and a draft of the letter ruling request or other detailed written statement explaining the
proposed transaction, issue, and legal analysis, before scheduling the pre-submission conference.

Bulletin No. 2017–1

Sec. 16
January 3, 2017

Section 15.07 was amended to clarify and expand when the reduced user fee for substantially
identical letter rulings applies. Conforming changes were made throughout.
Section 15.08 was amended to reﬂect that the IRS is transitioning towards making www.pay.gov the exclusive means for making payments for certain guidance under this revenue procedure.
Conforming changes were made throughout.
Sections B.3 and B.5 of Appendix A were amended to clarify the calculation of gross income
for S corporations.
SECTION 17. WHAT IS
THE EFFECT OF THIS
REVENUE PROCEDURE
ON OTHER
DOCUMENTS?

.01 Rev. Proc. 2016 –1, 2016 –1 I.R.B. 1 is superseded.

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

This revenue procedure is effective January 3, 2017.

SECTION 19.
PAPERWORK
REDUCTION ACT

The collections of information contained in this revenue procedure have been reviewed and
approved by the Ofﬁce of Management and Budget in accordance with the Paperwork Reduction
Act (44 U.S.C. § 3507) under control number 1545-1522.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection
of information unless the collection of information displays a valid control number.
The collections of information in this revenue procedure are in sections 5.06, 6.03, 7.01, 7.02,
7.03, 7.04, 7.05, 7.07, 7.08, 8.02. 8.05, 8.07, 10.01, 10.06, 10.07, 11.11, 13.02, 15.02, 15.07,
15.08, 15.09, 15.11, paragraph (B)(1) of Appendix A, Appendix C, Appendix D, Appendix E, and
Appendix G (subject matter—rate orders; regulatory agency; normalization). This information is
required to evaluate and process the request for a letter ruling or determination letter. In addition,
this information will be used to help the Service delete certain information from the text of the
letter ruling or determination letter before it is made available for public inspection as required
by § 6110. The collections of information are required to obtain a letter ruling or determination
letter. The likely respondents are businesses or other for-proﬁt institutions and tax exempt
organizations.
The estimated total annual reporting and/or recordkeeping burden is 316,020 hours.
The estimated annual burden per respondent/recordkeeper varies from 1 to 200 hours, depending on individual circumstances, with an estimated average burden of 80 hours. The estimated
number of respondents and/or recordkeepers is 3,956.
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection of information must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally, tax
returns and tax return information are conﬁdential, as required by§ 6103.

DRAFTING
INFORMATION

Sec. 17.01
January 3, 2017

The principal author of this revenue procedure is Eliezer Mishory of the Ofﬁce of Associate
Chief Counsel (Procedure and Administration). For further information regarding this revenue
procedure for matters under the jurisdiction of—

Bulletin No. 2017–1

(1) the Associate Chief Counsel (Corporate), contact Ken Cohen or Jean R. Broderick at (202)
317-7700 (not a toll-free call),
(2) the Associate Chief Counsel (Financial Institutions and Products), contact James Polfer at
(202) 317-4556 (not a toll-free call),
(3) the Associate Chief Counsel (Income Tax and Accounting), contact R. Matthew Kelley at
(202) 317-7002 (not a toll-free call),
(4) the Associate Chief Counsel (Passthroughs and Special Industries), contact Anthony
McQuillen at (202) 317-5260 (not a toll-free call),
(5) the Associate Chief Counsel (Procedure and Administration), contact Charles A. Hall at
(202) 317-3400 (not a toll-free call),
(6) the Associate Chief Counsel (Tax Exempt and Government Entities), contact Michael B.
Blumenfeld at (202) 317-6000 (not a toll-free call), or
(7) the Associate Chief Counsel (International), contact Nancy Galib at (202) 317-3800 (not a
toll-free call).
For further information regarding user fees, contact the Docket, Records, and User Fee Branch
at (202) 317-5221 (not a toll-free call).
For further information regarding determination letters:
SBSE and WI taxpayers should contact the ofﬁces listed in Appendix F of this Revenue
Procedure;
LB&I taxpayers should contact Melanie Perrin in the Ofﬁce of Compliance Integration, LB&I,
at (202) 317-3157 (not a toll-free call);
TE/GE taxpayers should also refer to Revenue Procedures 2017– 4 and 2017–5, this bulletin.

Bulletin No. 2017–1

January 3, 2017

INDEX
References are to sections in Rev. Proc. 2017–1
Additional Information
– penalties of perjury statement required ..........................................................................................8.05(4)
– proposed deletions under § 6110 ..................................................................................................7.01(11)
– information requested during initial and subsequent contacts............................................................8.05
failure to submit..............................................................................................................................8.05(3)
subsequent information after conference ..........................................................................................10.06
– where to send...................................................................................................................................8.05(6)
Changes in Method of Accounting or Accounting Period
– applicable sections of Rev. Proc. 2017–1 for changes in method of accounting...................................9
– applicable sections of Rev. Proc. 2017–1 for accounting period..........................................Appendix G
– automatic change request procedures ..................................................................9.01, 9.22, Appendix G
– identical changes in method of accounting .......................................................9.15, 15.07, Appendix A
– user fees...................................................................................................................................Appendix A
Checklist Required .......................................................................................................7.01(18), Appendix C
Conferences
– offered.................................................................................................................................................10.02
after conference of right....................................................................................................................10.05
application of § 6110 ...............................................................................................................7.01(11)(e)
– requesting a conference...................................................................................................................7.02(6)
– scheduling................................................................................................................................10.01, 10.02
application of § 7805(b) ...............................................................................................11.11(2), 13.02(2)
pre-submission conferences...............................................................................................................10.07
telephone conferences........................................................................................................................10.08
Deﬁnitions
– Associate ofﬁce................................................................................................................................1.01(2)
– closing agreement.................................................................................................................................2.02
– determination letter ..............................................................................................................................2.03
– Director ............................................................................................................................................1.01(3)
– Field ofﬁce.......................................................................................................................................1.01(4)
– taxpayer............................................................................................................................................1.01(5)
– information letter..................................................................................................................................2.04
– letter ruling ...........................................................................................................................................2.01
– Service..............................................................................................................................................1.01(1)
Determinations Under § 999(d) ...............................................................................................................5.04
Discussions Not Binding on Service
– at pre-submission conference ........................................................................................................10.07(4)
– informal opinion expressed..................................................................................................................8.04
– oral advice to taxpayers ..................................................................................................................2.05(2)
Employee Plans and Exempt Organizations
– jurisdiction of Commissioner, Tax Exempt and Government Entities Division ...............................4.02
– user fees................................................................................................................................................4.02
Estate Tax Matters
– issuance of determination letters ............................................................................................12.02, 12.05
– issuance of letter rulings ......................................................................................................................5.06
under § 2032A(c) ................................................................................................................................5.07

January 3, 2017

Bulletin No. 2017–1

INDEX
Expedited Handling of Letter Ruling and Determination Letter Requests ..................................7.02(4)
Extension of Time
– to schedule conference.......................................................................................................................10.01
– to submit additional information.....................................................................................................8.05(2)
Fax Transmission
– to receive letter ruling .....................................................................................................................7.02(5)
– to receive request for additional information .................................................................................7.02(5)
– to submit additional information.....................................................................................................8.05(5)
– letter ruling requests must not be submitted by fax ..................................................................7.04(1)(c)
Hand Delivery of Letter Ruling Requests .........................................................................................7.04(1)
No-Rule Areas .................................................................................................................................................6
Oral Advice to Taxpayers ........................................................................................................................2.05
Penalties of Perjury Statement
– form for letter ruling request ....................................................................................................7.01(15)(a)
– form for submission of additional information ..............................................................................8.05(4)
– required with draft letter ruling ...........................................................................................................8.07
– signature requirements ..............................................................................................................7.01(15)(b)
Pending Letter Ruling Requests
– when to attach a copy to return ......................................................................................................7.05(2)
estate tax matters .................................................................................................................................5.06
– when to notify Associate ofﬁce...........................................................................................................7.05
estate tax matters .................................................................................................................................5.06
Power of Attorney
– Form 2848........................................................................................................................7.01(14), 7.02(2)
original sent to the taxpayer...........................................................................................................7.02(2)
copy sent to a representative ..........................................................................................................7.02(2)
copies sent to multiple representatives ..........................................................................................7.02(2)
no copy sent to representatives ......................................................................................................7.02(2)
– signature requirements...................................................................................................................7.01(14)
Public Disclosure of Information Letters ...............................................................................................2.04
Public Inspection Under § 6110 ........................................................................................................7.01(11)
– signature requirements ..............................................................................................................7.01(11)(c)
Representatives
– compliance with Treasury Department Circular No. 230............................................................7.01(13)
– power of attorney required............................................................................................................7.01(14)
– requirements...................................................................................................................................7.01(13)
authorized representatives ........................................................................................................7.01(13)(a)
authorized based on relationship .............................................................................................7.01(13)(b)
return preparer ..........................................................................................................................7.01(13)(c)
foreign representative...............................................................................................................7.01(13)(d)
Retroactive Revocation or Modiﬁcation
– of determination letter.............................................................................................................................13
request to limit retroactive effect......................................................................................................13.02
– of letter ruling.......................................................................................................................11.05 – 11.10
request to limit retroactive effect......................................................................................................11.11
Revenue Rulings

Bulletin No. 2017–1

January 3, 2017

INDEX
– effect on a letter ruling ......................................................................................................................11.04
– request to limit retroactive effect ......................................................................................................11.11
Sample of a Letter Ruling Request ............................................................................7.01(17), Appendix B
Section 301.9100 Relief .............................................................................................................................5.03
Section 367 Rulings ...................................................................................................................................5.05
Status of Letter Ruling and Determination Letter Requests...............................................................7.07
Substantially Identical Letter Rulings .......................................................................15.07(2), Appendix A
Tax Exempt and Government Entities
– jurisdiction of Commissioner, Tax Exempt and Government Entities Division ...............................4.02
– user fees................................................................................................................................................4.02
User Fees
– schedule of user fees...............................................................................................................Appendix A
– user fee requirements ..............................................................................................................................15
to reopen case .................................................................................................................................8.05(3)
Where to Send
– determination letter request..................................................................................................................7.04
– letter ruling request.....................................................................................................................7.04, 9.05
additional information.......................................................................................................8.05(6), 9.08(6)
hand delivery...................................................................................................................................7.04(1)
Withdrawal of Letter Ruling and Determination Letter Requests ...................................................7.08

January 3, 2017

Bulletin No. 2017–1

APPENDIX A
SCHEDULE OF USER FEES
NOTE: Checks or money orders must be in U.S. dollars. Payment may also be made through www.pay.gov.
(A) FEE SCHEDULE
USER FEE FOR
USER FEE FOR
REQUESTS
REQUESTS
RECEIVED PRIOR TO
RECEIVED AFTER
CATEGORY
FEBRUARY 2, 2017
FEBRUARY 1, 2017
(1) User fee for a request for a determination letter from a Direc$275
$275
tor. The user fee for each determination letter request governed by
Rev. Proc. 2017–1, this revenue procedure.
(2) User fee for a request for an advance pricing agreement or a
renewal of an advance pricing agreement.
(3) User fee for a request for a letter ruling or closing agreement.
Except for the user fees for advance pricing agreements and renewals,
the reduced fees provided in paragraph (A)(4) of this appendix, the
user fees provided in paragraph (A)(5) of this appendix, and the exemptions provided in section 15.04 of Rev. Proc. 2017–1, this revenue
procedure, the user fee for each request for a letter ruling or closing
agreement under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the
Associate Chief Counsel (International), the Associate Chief Counsel
(Passthroughs and Special Industries), the Associate Chief Counsel
(Procedure and Administration), or the Associate Chief Counsel (Tax
Exempt and Government Entities) is as follows:
(a) Accounting periods
(i) Form 1128, Application to Adopt, Change, or Retain a
Tax Year, (except as provided in paragraph (A)(4)(a) of
this appendix)
(ii) Requests made on Part II of Form 2553, Election by a
Small Business Corporation, to use a ﬁscal year based on
a business purpose (except as provided in paragraph
(A)(4)(a) of this appendix)
(iii) Letter ruling requests for extensions of time to ﬁle Form
1128, Application to Adopt, Change, or Retain a Tax
Year, Form 8716, Election To Have a Tax Year Other
Than a Required Tax Year, or Part II of Form 2553 under
§ 301.9100–3 (except as provided in paragraph (A)(4)(a)
of this appendix)
(b) Changes in Methods of Accounting
(i) Non-automatic Form 3115, Application for Change in Accounting Method (except as provided in paragraph
(A)(4)(a) or (b), or (5)(b) of this appendix)
(ii) Letter ruling requests for extensions of time to ﬁle Form
3115, Application for Change in Accounting Method, under § 301.9100–3 (except as provided in paragraph
(A)(4)(a) or (b), or (5)(c) of this appendix)
No user fee is required if the change in accounting period or method
of accounting is permitted to be made pursuant to a published automatic change request procedure. See section 9.22 and Appendix G of
Rev. Proc. 2017–1, this revenue procedure, for the list of automatic
change request procedures published and/or in effect as of December
31, 2016.

Bulletin No. 2017–1

See section 3.05 of Rev.
Proc. 2015–41, 2015–35
I.R.B. 263.

See section 3.05 of
Rev. Proc. 2015–41,
2015–35 I.R.B. 263.

$4,200

$5,800

$4,200

$5,800

$3,700

$5,400

$8,600

$9,500

$9,100

$10,000

January 3, 2017

CATEGORY
(c) (i) Letter ruling request for relief under § 301.9100–3 (except
as provided in paragraph (A)(4)(a) or (b), or (5)(a) of this
appendix)
(ii) All other letter ruling requests (including accounting period
and method of accounting requests other than those properly
submitted on Form 1128, Application to Adopt, Change, or
Retain a Tax Year, Part II of Form 2553, Election by a
Small Business Corporation, or Form 3115, Application for
Change in Accounting Method) (except as provided in paragraph (A)(4)(a) or (b), or (5)(a) of this appendix)
(d) Requests for closing agreements on a proposed transaction or
on a completed transaction before a return for the transaction
has been ﬁled in which a letter ruling on that transaction is not
requested or issued (except as provided in paragraph (A)(4)(a)
or (b) of this appendix)
(e) A request for a Foreign Insurance Excise Tax Waiver Agreement
NOTE: A taxpayer who receives relief under § 301.9100–3 (for example, an extension of time to ﬁle Form 3115, Application for Change in
Accounting Method) will be charged a separate user fee for the letter
ruling request on the underlying issue (for example, the accounting
period or method of accounting application).
(4) Reduced user fee for a request for a letter ruling, method or
period change, or closing agreement. A reduced user fee for a request involving a personal, exempt organization, governmental entity,
or business tax issue is provided in the following situations if the person provides the certiﬁcation described in paragraph (B)(1) of this
appendix:
(a) Request involves a tax issue from a person with gross income
(as determined under paragraphs (B)(2), (3), (4), and (5) of this
appendix) of less than $250,000
(b) Request involves a tax issue from a person with gross income
(as determined under paragraphs (B)(2), (3), (4), and (5) of
this appendix) of less than $1 million and $250,000 or more.
(5) User fee for substantially identical letter ruling requests, identical changes in method of accounting, or plans from issuing authorities under § 25(c)(2)(B). If the requirements of section 15.07 of
Rev. Proc. 2017–1, this revenue procedure, are satisﬁed, the user fee
for the following situations is as follows:
(a) Substantially identical letter rulings requested (other than
changes in methods of accounting requested on Form 3115)
Requests for substantially identical letter rulings for multiple
entities with a common member or sponsor, or for multiple
members of a common entity, or for parties engaged together
in the same transaction affecting all requesting taxpayers, for
each additional letter ruling request after the $28,300 fee or
reduced fee, as applicable, has been paid for the ﬁrst letter ruling request. These requests may include, but are not limited to,
requests for substantially identical letter rulings for two or
more identical trusts, multiple beneﬁciaries of a trust, a trust
divided into identical subtrusts, spouses making split gifts, or
series funds within a single trust or series organization.

January 3, 2017

USER FEE FOR
REQUESTS
RECEIVED PRIOR TO
FEBRUARY 2, 2017
$9,800

USER FEE FOR
REQUESTS
RECEIVED AFTER
FEBRUARY 1, 2017
$10,000

$28,300

$7,200

$2,200

$2,400

$6,500

$7,600

$2,700

Bulletin No. 2017–1

USER FEE FOR
REQUESTS
RECEIVED PRIOR TO
FEBRUARY 2, 2017

USER FEE FOR
REQUESTS
RECEIVED AFTER
FEBRUARY 1, 2017

$180

$200

$1,500

$180

$200

(7) User fee for pre-ﬁling agreements. Effective January 1, 2017.
See section 10 of Rev. Proc. 2016–30.

$218,600

(8) Tax treaty limitation of beneﬁts. See Rev. Proc. 2015–40,
2015–35 I.R.B. 236 for procedures for requesting competent authority
assistance under tax treaties.

$27,500

$5,700
$290

CATEGORY
NOTE: Each entity or member that is entitled to the user fee under
paragraph (A)(5)(a) of this appendix, that receives relief under
§ 301.9100–3 (for example, an extension of time to ﬁle an election)
will be charged a separate user fee for the letter ruling request on the
underlying issue.
NOTE: The fee charged for the ﬁrst letter ruling is the highest fee
applicable to any of the entities.
NOTE: Where the requests for the letter rulings are submitted by a
private foundation described in § 509 and one or more disqualiﬁed
persons described in § 4946, the fee charged for the ﬁrst letter ruling
to a disqualiﬁed person is the highest fee applicable to any of the taxpayers.
(b) Identical change in method of accounting requested on a single Form 3115, Application for Change in Accounting
Method, as provided in section 15.07(4). Fee for each additional applicant seeking the identical change in method of
accounting on the same Form 3115 after the $8,600 fee or
reduced fee, as applicable, has been paid for the ﬁrst applicant.
(c) Substantially identical plans under § 25(c)(2)(B)
Situations where an issuing authority under § 25 submits substantially identical plans for administering the 95-percent requirement of § 143(d)(1) following the submission of an initial plan that was approved.
NOTE: The fee charged for the ﬁrst letter ruling is the highest fee
applicable to any of the entities.
(d) Extension of time requested to ﬁle Form 3115, Application
for Change in Accounting Method, for an identical change in
method of accounting as provided in section 15.07(4). Fee
for each additional or each additional applicant seeking the
identical extension of time under § 301.9100–3 to ﬁle a single Form 3115 for the identical change in method of accounting after the $9,100 fee or reduced fee, as applicable, has
been paid for the ﬁrst applicant.
NOTE: When an extension of time to ﬁle Form 3115, Application for
Change in Accounting Method, is granted under § 301.9100–3 for
multiple applicants, a separate user fee will be charged for the change
in method of accounting application, Form 3115.
(6) User fee for information letter requests.

(9) Statement of Value. See Rev. Proc. 96–15 for procedures for requesting a statement of value.
(a) Effective February 3, 2016:
(i) User fee for a case with 1–3 items
(ii) Cost per each additional item beyond 3

Bulletin No. 2017–1

January 3, 2017

(B) PROCEDURAL MATTERS
(1) Required certiﬁcation. A person seeking a reduced user fee under paragraph (A)(4) of this Appendix must provide the
following certiﬁcation in order to obtain the reduced user fee:
(a) If a person is seeking a reduced user fee under paragraph (A)(4)(a) of this appendix, the person must certify in the request that
his, her, or its gross income, as deﬁned under paragraphs (B)(2), (3), (4), and (5) of this appendix, as applicable, is less than $250,000
as reported on their last federal income tax return (as amended) ﬁled for a full (12 months) taxable year ending before the date the
request is ﬁled.
(b) If a person is seeking a reduced user fee under paragraph (A)(4)(b) of this appendix, the person must certify in the request
that his, her, or its gross income, as deﬁned under paragraphs (B)(2), (3), (4), and (5) of this appendix, as applicable, is less than $1
million and more than $250,000 for the last full (12 months) taxable year ending before the date the request is ﬁled.
The certiﬁcation must be attached as part of the ruling request.
(2) Gross income for a request involving a personal tax issue. For purposes of the reduced user fees provided in paragraphs
(A)(4)(a) and (b) of this Appendix of—
(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to “total
income” as reported on their last federal income tax return (as amended) ﬁled for a full (12 months) taxable year ending before the
date the request is ﬁled, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period.
“Total income” is a line item on Federal tax returns. For example, if the 2014 Form 1040, U.S. Individual Income Tax Return, is the
most recent 12-month taxable year return ﬁled by a U.S. citizen, “total income” on the Form 1040 is the amount entered on line 22.
In the case of a request for a letter ruling or closing agreement from a domestic estate or trust that, at the time the request is ﬁled,
has not ﬁled a Federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this Appendix will
apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the last Federal income tax
return ﬁled for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required
to be made to total income described in this paragraph (B)(2)(a), is less than $250,000 (or less than $1,000,000 for the paragraph
(A)(4)(b) fee to apply). In this case, the executor or administrator of the decedent’s estate or the grantor must provide the certiﬁcation
required under paragraph (B)(1) of this appendix.
(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to “total effectively connected
income” as reported on their last Federal income tax return (as amended) ﬁled for a full (12 months) taxable year ending before the
date the request is ﬁled, plus any income for the period from United States or foreign sources that is not taxable by the United States,
whether by reason of § 103, an income tax treaty, § 871(h) (regarding portfolio interest), or otherwise, plus the total amount of any
ﬁxed or determinable annual or periodical income from United States sources, the United States tax liability for which is satisﬁed
by withholding at the source. “Total effectively connected income” is a line item on Federal tax returns. For example, if the 2014
Form 1040NR, U.S. Nonresident Alien Income Tax Return, is the most recent 12-month taxable year return ﬁled by a nonresident
alien individual, “total effectively connected income” on the Form 1040NR is the amount entered on line 23.
In the case of a request for a letter ruling or closing agreement from a foreign estate or trust that, at the time the request is ﬁled,
has not ﬁled a Federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this Appendix will
apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income or total effectively connected income, as
relevant, as reported on the last Federal income tax return ﬁled for a full taxable year ending before the date of death or the date of
the transfer, taking into account any additions required to be made to total income or total effectively connected income described
respectively in paragraph (B)(2)(a) of this Appendix or in this paragraph (B)(2)(b), is less than $250,000 (or less than $1,000,000
for the paragraph (A)(4)(b) fee to apply). In this case, the executor or administrator of the decedent’s estate or the grantor must
provide the certiﬁcation required under paragraph (B)(1) of this Appendix.
(3) Gross income for a request involving a business-related tax issue. For purposes of the reduced user fees provided in
paragraphs (A)(4)(a) and (b) of this Appendix of—
(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to gross income
as deﬁned under paragraph (B)(2)(a) of this Appendix, plus “cost of goods sold” as reported on the same Federal income tax return.
(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to gross income as deﬁned under
paragraph (B)(2)(b) of this Appendix, plus “cost of goods sold” as reported on the same Federal income tax return.
(c) Partnerships with a Form 1065 ﬁling requirement and corporations (foreign and domestic), “gross income” is equal to
“total income” as reported on their last Federal tax return (as amended) ﬁled for a full (12 months) taxable year ending before the
date the request is ﬁled, plus “cost of goods sold” as reported on the same Federal tax return, plus any interest income not subject
to tax under § 103 (interest on state and local bonds) for that period. Partnerships with a Form 1065 ﬁling requirement should also
include “gross rents” reported on Form 8825 at line 2, as well as the income amounts reported on Schedule K Form 1065 at lines
3a, 5, 6a, 7, 8, 9a, 10, and 11 from the same Federal tax return described in the preceding sentence to calculate “gross income” for
the purpose of applying the reduced user fee in paragraph (A)(4) of this Appendix. S Corporations with a Form 1120S ﬁling
requirement should also include “gross rents” reported on Form 8825 at line 2, as well as the income amounts reported on Schedule
K Form 1120S at lines 3a, 4, 5a, 6, 7, 8a, 9, and 10 from the same Federal tax return described in the ﬁrst sentence of this paragraph

January 3, 2017

Bulletin No. 2017–1

to calculate “gross income” for the purpose of applying the reduced user fee in paragraph (A)(4) of this Appendix. If a partnership
or S Corporation is not required to ﬁle or a C corporation is not subject to tax, “total income” and “cost of goods sold” are the
amounts that the partnership or corporation would have reported on the Federal tax return if the partnership or S Corporation had
been required to ﬁle or the C corporation had been subject to tax.
“Cost of goods sold” and “total income” are line items on Federal tax returns. For example, if the 2015 Form 1065, U.S. Return
of Partnership Income, is the most recent 12-month taxable year return ﬁled by a partnership, “cost of goods sold” and “total income”
on the Form 1065 are the amounts entered on lines 2 and 8, respectively; if the 2015 Form 1120, U.S. Corporation Income Tax
Return, is the most recent 12-month taxable year return ﬁled by a domestic corporation, “cost of goods sold” and “total income” on
the Form 1120 are the amounts entered on lines 2 and 11, respectively; and if the 2015 Form 1120S, U.S. Income Tax Return for
an S Corporation, is the most recent 12-month taxable year return ﬁled by an S corporation, “cost of goods sold” and “total income”
on the Form 1120S are the amounts entered on lines 2 and 6, respectively.
If, at the time the request is ﬁled, a partnership or corporation subject to tax has not ﬁled a Federal tax return for a full taxable
year, the reduced user fee in paragraph (A)(4)(a) or (b) of this Appendix will apply if, in the aggregate, the partners’ or the
shareholders’ gross income (as deﬁned in paragraph (B)(3)(a), (b), or (c), of this Appendix, as applicable) is less than $250,000 for
purposes of paragraph (A)(4)(a) or $1 million for purposes of paragraph (A)(4)(b) for the last full (12 months) taxable year ending
before the date the request is ﬁled. In this case, the partners or the shareholders must provide the certiﬁcation required under
paragraph (B)(1) of this Appendix.
(4) Gross income for a request involving an exempt organization or governmental entity. For purposes of the reduced user
fees provided in paragraphs (A)(4)(a) and (b) of this Appendix of—
(a) Organizations exempt from income tax under “Subchapter F-Exempt Organizations” of the Code, “gross income” is
equal to the amount of gross receipts for the last full (12 months) taxable year ending before the date the request for a letter ruling
or closing agreement is ﬁled.
(b) State, local, and Indian tribal government entities, “gross income” is equal to the annual operating revenue of the
government requesting the ruling for its last ﬁscal year ending before the date of the ruling request. The annual operating revenue
is to be determined at the government level and not at the level of the government entity or agency making the request.
(5) Special rules for determining gross income. For purposes of paragraphs (B)(2), (3) and (4) of this Appendix, the following
rules apply for determining gross income.
(a) Gross income of individuals, trusts, and estates.
(1) In the case of a request from a married individual, the gross incomes (as deﬁned in paragraph (B)(2) or (3) of this Appendix,
as applicable) of the applicant and the applicant’s spouse must be combined. This rule does not apply to an individual: (1) who is
legally separated from his or her spouse and (2) who did not ﬁle a joint income tax return; and
(2) If there are two or more applicants ﬁling the request, the gross incomes (as deﬁned in paragraph (B)(2) or (3) of this Appendix,
as applicable) of the applicants must be combined.
(b) Gross income of domestic partnerships and corporations.
(1) In the case of a request from a domestic C corporation, the gross income (as deﬁned in paragraph (B)(3) of this Appendix)
of (i) all members of the applicant’s controlled group (as deﬁned in § 1563(a)), and (ii) any taxpayer who is involved in the
transaction on which the letter ruling or closing agreement is requested, must be combined; and
(2) In the case of a request from a domestic partnership, the gross income (as deﬁned in paragraph (B)(3) of this Appendix) of
(i) the partnership, and (ii) any partner who owns, directly or indirectly, 50 percent or more of the capital interest or proﬁts interest
in the partnership, must be combined.
(3) In the case of a request from an S corporation, the gross income (as deﬁned in paragraph (B)(3) of this Appendix) of (i) the
S corporation, and (ii) any shareholder who owns 50 percent or more of the S corporation, must be combined.
(c) Gross income of exempt organizations. If there are two or more organizations exempt from income tax under Subchapter
F ﬁling the request, the gross receipts (as deﬁned in paragraph (B)(4)(a) of this Appendix) of the applicants must be combined.

Bulletin No. 2017–1

January 3, 2017

APPENDIX B
SAMPLE FORMAT FOR A LETTER RULING REQUEST
INSTRUCTIONS
To assist you in preparing a letter ruling request, the Service is providing this sample format. You are not required to use this
sample format. If your request is not identical or similar to the sample format, the different format will not defer consideration of
your request.
(Insert the date of request)
Internal Revenue Service
Insert either: Associate Chief Counsel (Insert one of the following: Corporate, Financial Institutions and Products, Income Tax
and Accounting, International, Passthroughs and Special Industries, Procedure and Administration, or Tax Exempt and Government Entities)
Attn: CC:PA:LPD:DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
Dear Sir or Madam:
(Insert the name of the taxpayer) requests a ruling on the proper treatment of (insert the subject matter of the letter ruling request)
under section (insert the number) of the Internal Revenue Code.
[If the taxpayer is requesting expedited handling, a statement to that effect must be attached to, or contained in, the letter ruling
request. The statement must explain the need for expedited handling. See section 7.02(4) of Rev. Proc. 2017–1, this revenue
procedure. Hereafter, all references are to Rev. Proc. 2017–1 unless otherwise noted.]
A. STATEMENT OF FACTS
1. Taxpayer Information
[Provide the statements required by sections 7.01(1)(a) and (b).]
2. Description of Taxpayer’s Business Operations
[Provide the statement required by section 7.01(1)(c).]
3. Facts Relating to Transaction
[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling
request. This statement must include a detailed description of the transaction, including material facts in any accompanying
documents, and the business reasons for the transaction. See sections 7.01(1)(d), 7.01(1)(e), and 7.01(2).]
B. RULING REQUESTED
[The ruling request should contain a concise statement of the ruling requested by the taxpayer. The Service prefers that the
language of the requested ruling be exactly the same as the language the taxpayer wishes to receive.]
C. STATEMENT OF LAW
[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion and identify any pending
legislation that may affect the proposed transaction. The taxpayer also is strongly encouraged to identify and discuss any authorities
believed to be contrary to the position advanced in the ruling request. See sections 7.01(6), 7.01(8), 7.01(9), and 7.01(10).]
D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also is strongly encouraged
to identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 7.01(3),
7.01(6), 7.01(8), 7.01(9), and 7.01(10).]
E. CONCLUSION
[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]

January 3, 2017

Bulletin No. 2017–1

F. PROCEDURAL MATTERS
1. Revenue Procedure 2017–1 Statements
a. [Provide the statement required by section 7.01(4) regarding whether any return of the taxpayer, a related taxpayer within
the meaning of § 267 or of a member of an afﬁliated group of which the taxpayer is also a member within the meaning
of § 1504 which would be affected by the requested letter ruling or determination letter, is currently under examination,
before Appeals, or before a Federal court, or was previously under examination, before Appeals, or before a Federal court.]
b. [Provide the statement required by section 7.01(5)(a) regarding whether the Service previously ruled on the same or similar
issue for the taxpayer, a related taxpayer, or a predecessor. Please further note that if a reduced user fee is being submitted,
a certiﬁcation of eligibility for the reduced fee must be included with the ruling request.]
c. [Provide the statement required by section 7.01(5)(b) regarding whether the taxpayer, a related taxpayer, a predecessor,
or any representatives previously submitted a request (including an application for change in method of accounting)
involving the same or similar issue but withdrew the request before a letter ruling or determination letter was issued.]
d. [Provide the statement required by section 7.01(5)(c) regarding whether the taxpayer, a related taxpayer, or a predecessor
previously submitted a request (including an application for change in method of accounting) involving the same or a
similar issue that is currently pending with the Service.]
e. [Provide the statement required by section 7.01(5)(d) regarding whether, at the same time as this request, the taxpayer or
a related taxpayer is presently submitting another request (including an application for change in method of accounting)
involving the same or similar issue to the Service.]
f. [Provide the statement required by section 7.01(5)(e) regarding whether the taxpayer or a related taxpayer had, or has
scheduled, a pre-submission conference involving the same or a similar issue.]
g. [If the letter ruling request involves the interpretation of a substantive provision of an income or estate tax treaty, provide
the statement required by section 7.01(6) regarding whether the tax authority of the treaty jurisdiction has issued a ruling
on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor; whether the same or similar issue is
being examined, or has been settled, by the tax authority of the treaty jurisdiction or is otherwise the subject of a closing
agreement in that jurisdiction; and whether the same or similar issue is being considered by the competent authority of
the treaty jurisdiction.]
h. [Provide the statement required by section 7.01(8) regarding whether the law in connection with the letter ruling request
is uncertain and whether the issue is adequately addressed by relevant authorities.]
i. [If the taxpayer determines that there are no contrary authorities, a statement in the request to this effect should be included.
See section 7.01(9).]
j. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should
contain a statement to that effect. See section 7.02(6).]
k. [If the taxpayer is requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax)
transmission, the ruling request should contain a statement to that effect. See section 7.02(5).]
l. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement
to that effect. See section 7.02(1).]
m. [If the taxpayer is seeking to obtain the user fee provided in paragraph (A)(5)(a) of Appendix A for substantially identical
letter rulings, the letter ruling request must contain the statements required by section 15.07.]
2. Administrative
a. The ruling request should state: “The deletion statement and checklist required by Rev. Proc. 2017–1 are enclosed.” See
sections 7.01(11) and 7.01(18).]
b. The ruling request should state: ⬙The required user fee of $ (Insert the amount of the fee) has been paid through
www.pay.gov, or is enclosed.” See section 15 and Appendix A.]
c. If the taxpayer’s authorized representative is to sign the letter ruling request or is to appear before the Service in connection with
the request, the ruling request should state: “A Power of Attorney is enclosed.” See sections 7.01(13), 7.01(14), and 7.02(2).]
Sincerely yours,
(Insert the name of the taxpayer or the taxpayer’s authorized representative)
By:
Signature

Date

Typed or printed name of
person signing request
DECLARATION: [See section 7.01(15).]

Bulletin No. 2017–1

January 3, 2017

Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of
my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and
complete.
(Insert the name of the taxpayer)
By:
________________________________
Signature

Title

Date

(must be signed by taxpayer, not by taxpayer’s representative, see section 7.01(15)(b) of this revenue procedure)
Typed or printed name of
person signing declaration
[If the taxpayer is a corporation that is a member of an afﬁliated group ﬁling consolidated returns, the above declaration must also
be signed and dated by an ofﬁcer of the common parent of the group. See section 7.01(15).]

January 3, 2017

Bulletin No. 2017–1

APPENDIX C
CHECKLIST
IS YOUR LETTER RULING REQUEST COMPLETE?
INSTRUCTIONS
The Service will be able to respond more quickly to your letter ruling request if it is carefully prepared and complete. Use this
checklist to ensure that your request is in order. Complete the four items of information requested before the checklist. Answer each
question by circling “Yes,” “No,” or “N/A.” When a question contains a place for a page number, insert the page number (or
numbers) of the request that gives the information called for by a “Yes” answer to a question. Sign and date the checklist (as
taxpayer or authorized representative) and place it on top of your request.
If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with the
request or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist
is submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will
not cause the return of your request or defer substantive consideration of your request. You should still complete as much of
the checklist as possible and submit it with your request.
TAXPAYER’S NAME
TAXPAYER’S I.D. NO.
ATTORNEY/P.O.A.
PRIMARY CODE SECTION
CIRCLE ONE

ITEM

Yes No

1. Does your request involve an issue under the jurisdiction of the Associate Chief Counsel (Corporate), the
Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and
Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special
Industries), the Associate Chief Counsel (Procedure and Administration), or the Associate Chief Counsel (Tax
Exempt and Government Entities)? See section 3 of Rev. Proc. 2017–1, this revenue procedure. For issues under
the jurisdiction of other ofﬁces, see section 4 of Rev. Proc. 2017–1. (Hereafter, all references are to Rev. Proc.
2017–1 unless otherwise noted.)

Yes No

2. Have you read Rev. Proc. 2017–1, Rev. Proc. 2017–3, and Rev. Proc. 2017–7, this bulletin, to see if part or all
of the request involves a matter on which letter rulings are not issued or are ordinarily not issued?

Yes No N/A

3. If your request involves a matter on which letter rulings are not ordinarily issued, have you given compelling
reasons to justify the issuance of a letter ruling? Before preparing your request, you may want to call the branch
in the Ofﬁce of Associate Chief Counsel (Corporate), the Ofﬁce of Associate Chief Counsel (Financial Institutions
and Products), the Ofﬁce of Associate Chief Counsel (Income Tax and Accounting), the Ofﬁce of Associate Chief
Counsel (International), the Ofﬁce of Associate Chief Counsel (Passthroughs and Special Industries), the Ofﬁce
of Associate Chief Counsel (Procedure and Administration), or the Ofﬁce of Associate Chief Counsel (Tax
Exempt and Government Entities) responsible for substantive interpretations of the principal Internal Revenue
Code section on which you are seeking a letter ruling to discuss the likelihood of an exception. For matters under
the jurisdiction of—
(a) the Ofﬁce of Associate Chief Counsel (Corporate), the Ofﬁce of Associate Chief Counsel (Financial
Institutions and Products), the Ofﬁce of Associate Chief Counsel (Income Tax and Accounting), the Ofﬁce of
Associate Chief Counsel (Passthroughs and Special Industries), or the Ofﬁce of Associate Chief Counsel (Tax
Exempt and Government Entities), the Ofﬁce of the Associate Chief Counsel (Procedure and Administration), the
appropriate branch to call may be obtained by calling (202) 317-5221 (not a toll-free call);
(b) the Ofﬁce of the Associate Chief Counsel (International), the appropriate branch to call may be obtained
by calling (202) 317-3800 (not a toll-free call).

Yes No N/A
Page__

4. If the request involves a retirement plan qualiﬁcation matter under § 401(a), § 409, or § 4975(e)(7), have you
demonstrated that the request satisﬁes the three criteria in section 4.02 of Rev. Proc. 2017–3, this Bulletin, for a
ruling?

Bulletin No. 2017–1

January 3, 2017

Yes No N/A
Page __

5. If the request deals with a completed transaction, have you ﬁled the return for the year in which the transaction
was completed? See section 5.01.

Yes No

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

Yes No

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

Yes No

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

Yes No __

9. Are you requesting a letter ruling under the jurisdiction Page of Associate Chief Counsel (Corporate) on a
signiﬁcant issue (within the meaning of section 3.01(51) of Rev. Proc. 2017–3, this Bulletin) with respect to a
transaction described in § 332, § 351, § 355, or § 1036 or a reorganization within the meaning of § 368? See
section 6.03.

Yes No

10. Are you requesting the letter ruling for a business, trade, industrial association, or similar group concerning
the application of tax law to its members? See section 6.05.

Yes No

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

Yes No
Page __

12. Have you included a complete statement of all the facts relevant to the transaction? See section 7.01(1).

Yes No N/A

13. Have you submitted with the request true copies of all wills, deeds, and other documents relevant to the
transaction, and labeled and attached them in alphabetical sequence? See section 7.01(2).

Yes No N/A

14. Have you submitted with the request a copy of all applicable foreign laws, and certiﬁed English translations
of documents that are in a language other than English or of foreign laws in cases where English is not the ofﬁcial
language of the foreign country involved? See section 7.01(2).

Yes No

15. Have you included an analysis of facts and their bearing on the issues? Have you included, rather than merely
incorporated by reference, all material facts from the documents in the request? See section 7.01(3).

Yes No
Page __

16. Have you included the required statement regarding whether any return of the taxpayer (or any return of a
related taxpayer within the meaning of § 267 or of a member of an afﬁliated group of which the taxpayer is also
a member within the meaning of § 1504) who would be affected by the requested letter ruling or determination
letter is currently or was previously under examination, before Appeals, or before a Federal court? See section
7.01(4).

Yes No
Page __

17. Have you included the required statement regarding whether the Service previously ruled on the same or
similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 7.01(5)(a).

Yes No
Page __

18. Have you included the required statement regarding whether the taxpayer, a related taxpayer, a predecessor,
or any representatives previously submitted a request (including an application for change in method of
accounting) involving the same or similar issue but withdrew the request before the letter ruling or determination
letter was issued? See section 7.01(5)(b).

Yes No
Page __

19. Have you included the required statement regarding whether the taxpayer, a related taxpayer, or a predecessor
previously submitted a request (including an application for change in method of accounting) involving the same
or similar issue that is currently pending with the Service? See section 7.01(5)(c).

Yes No
Page __

20. Have you included the required statement regarding whether, at the same time as this request, the taxpayer or
a related taxpayer is presently submitting another request (including an application for change in method of
accounting) involving the same or similar issue to the Service? See section 7.01(5)(d).

Yes No
Page __

21. Have you included the required statement regarding whether the taxpayer or a related taxpayer had, or has
scheduled, a pre-submission conference involving the same or a similar issue? See section 7.01(5)(e).

Yes No N/A
Page __

22. If your request involves the interpretation of a substantive provision of an income or estate tax treaty, have
you included the required statement regarding whether the tax authority of the treaty jurisdiction has issued a
ruling on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor; whether the same or
similar issue is being examined, or has been settled, by the tax authority of the treaty jurisdiction or is otherwise
the subject of a closing agreement in that jurisdiction; and whether the same or similar issue is being considered
by the competent authority of the treaty jurisdiction? See section 7.01(6).

January 3, 2017

Bulletin No. 2017–1

Yes No N/A
Page __

23. If your request is for recognition of Indian tribal government status or status as a political subdivision of an
Indian tribal government, does your request contain a letter from the Bureau of Indian Affairs regarding the tribe’s
status? See section 7.01(7), which states that taxpayers are encouraged to submit this letter with the request and
provides the address for the Bureau of Indian Affairs.

Yes No
Page __

24. Have you included the required statement of relevant authorities in support of your views? See section 7.01(8).

Yes No
Page __

25. Have you included the required statement regarding whether the law in connection with the request is uncertain
and whether the issue is adequately addressed by relevant authorities? See section 7.01(8).

Yes No
Pages _

26. Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations, notices,
revenue rulings, or revenue procedures that you determined to be contrary to the position advanced? See section
7.01(9), which states that taxpayers are encouraged to inform the Service of such authorities.

Yes No N/A
Page __

27. If you determined that there are no contrary authorities, have you included a statement to this effect in your
request? See section 7.01(9).

Yes No N/A
Page __

28. Have you included in your request a statement identifying any pending legislation that may affect the proposed
transaction? See section 7.01(10).

Yes No

29. Have you included the deletion statement required by § 6110 and placed it on the top of the letter ruling request
as required by section 7.01(11)(b)?

Yes No
Page __

30. Have you (or your authorized representative) signed and dated the request? See section 7.01(12).

Yes No N/A

31. If the request is signed by your representative or if your representative will appear before the Service in
connection with the request, is the request accompanied by a properly prepared and signed power of attorney with
the signatory’s name typed or printed? See section 7.01(14).

Yes No
Page __

32. Have you signed, dated, and included the penalties of perjury statement in the format required by section 7.01(15)?

Yes No N/A

33. Are you submitting your request in duplicate if necessary? See section 7.01(16).

Yes No N/A
Page _

34. If you are requesting separate letter rulings on different issues involving one factual situation, have you included a
statement to that effect in each request? See section 7.02(1).

Yes No N/A

35. If you want copies of the letter ruling sent to a representative, does the power of attorney contain a statement to that
effect? See section 7.02(2).

Yes No N/A

36. If you do not want a copy of the letter ruling to be sent to any representative, does the power of attorney contain
a statement to that effect? See section 7.02(2).

Yes No N/A

37. If you are making a two-part letter ruling request, have you included a summary statement of the facts you believe
to be controlling? See section 7.02(3).

Yes No N/A
Page __

38. If you want your letter ruling request to be processed ahead of the regular order or by a speciﬁc date, have you
requested expedited handling in the manner required by section 7.02(4) and stated a compelling need for such action
in the request? See section 7.02(4) of this revenue procedure.

Yes No N/A
Page __

39. If you are requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax)
transmission, have you included a statement to that effect? See section 7.02(5).

Yes No N/A
Page __

40. If you want to have a conference on the issues involved in the request, have you included a request for conference
in the letter ruling request? See section 7.02(6).

Yes No

41. Have you paid the correct user fee through www.pay.gov (or if paying by check or money order in U.S. dollars, is
it payable to the Internal Revenue Service)? See section 15 and Appendix A to determine the correct amount.

Yes No N/A
Page __

42. If your request involves a personal, exempt organization, governmental entity, or business-related tax issue and you
qualify for the reduced user fee because your gross income is less than $250,000, have you included the required
certiﬁcation? See paragraphs (A)(4)(a) and (B)(1) of Appendix A.

Bulletin No. 2017–1

January 3, 2017

Yes No N/A
Page __

43. If your request involves a personal, exempt organization, governmental entity, or business-related tax issue and you
qualify for the reduced user fee because your gross income is less than $1 million, have you included the required
certiﬁcation? See paragraphs (A)(4)(b) and (B)(1) of Appendix A.

Yes No N/A
Page __

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

Yes No N/A
Page __

45. If you qualify for the user fee for a § 301.9100 request to extend the time for ﬁling an identical change in method
of accounting on a single Form 3115, Application for Change in Accounting Method, have you included the required
information? See section 15.07(4) and paragraph (A)(5)(d) of Appendix A.

Yes No N/A

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

Rev.
Proc.
______
______
______

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

Yes No N/A
Page _

47. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all of the
requirements in section 11.11?

Yes No N/A
Page __

48. If you are requesting relief under § 301.9100 for a late entity classiﬁcation election, have you included a statement that
complies with section 4.04 of Rev. Proc. 2009–41, 2009–39 I.R.B. 439? See section 5.03(5) of this revenue procedure.

Yes No N/A
Page __

49. If you are requesting relief under § 301.9100, and your request involves a year that is currently under examination or with
appeals, have you included the required notiﬁcation, which also provides the name and telephone number of the examining
agent or appeals ofﬁcer? See section 7.01(4) of this revenue procedure.

Yes No

50. If you are requesting relief under § 301.9100, have you included the afﬁdavit(s) and declaration(s) required by
§ 301.9100–3(e)? See § 5.03(1) of this revenue procedure.

Yes No

51. If you are requesting relief under § 301.9100–3, and the period of limitations on assessment under § 6501(a) will expire
for any year affected by the requested relief before the anticipated receipt of a letter ruling, have you secured consent under
§ 6501(c)(4) to extend the period of limitations on assessment for the year(s) at issue? See § 5.03(2) of this revenue procedure.

Yes No

52. Have you addressed your request to the attention of the Associate Chief Counsel (Corporate), the Associate Chief Counsel
(Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel
(International), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Procedure
and Administration), or the Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate? The mailing
address is:
Internal Revenue Service
Attn: CC:PA:LPD:DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
If a private delivery service is used, the address is:
Internal Revenue Service
Attn: CC:PA:LPD:DRU, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
The package should be marked: RULING REQUEST SUBMISSION. Improperly addressed requests
may be delayed (sometimes for over a week) in reaching CC:PA:LPD:DRU for initial processing.

________________________
Signature

Title or Authority

Date

Typed or printed name of
person signing checklist

January 3, 2017

Bulletin No. 2017–1

APPENDIX D
ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLAN RULING REQUESTS
In order to assist Associate Chief Counsel (Tax Exempt and Government Entities) in processing a ruling request involving
government pick-up plans, in addition to the items in Appendix C please check the following list.
Yes No N/A
Page ___

1. Is the plan qualiﬁed under § 401(a) of the Code? (Evidence of qualiﬁcation or representation that the plan is
qualiﬁed.)

Yes No N/A
Page ___

2. Is the organization that established the plan a State or political subdivision thereof, or any agency or
instrumentality of the foregoing? An example of this would be a representation that the organization that has
established the plan is a political subdivision or municipality of the State.

Yes No N/A
Page ___

3. Is there speciﬁc information regarding who are the eligible participants?

Yes No N/A
Page ___

4. Are the contributions that are the subject of the ruling request mandatory employee contributions? These
contributions must be for a speciﬁed dollar amount or a speciﬁc percentage of the participant’s compensation and
the dollar amount or percentage of compensation cannot be subject to change.

Yes No N/A
Page ___

5. Does the plan provide that the participants do not have the election to opt in and/or out of the plan?

Yes No N/A
Page ___

6. Are copies of the enacting legislation providing that the contributions although designated as employee
contributions are being paid by the employer in lieu of contributions by the employee included?

Yes No N/A
Page ___

7. Are copies of the speciﬁc enabling authorization that provides the employee must not have the option of
choosing to receive the contributed amounts directly instead of having them paid by the employer to the plan
included? For example, a resolution, ordinance, plan provision, or collective bargaining agreement could specify
this information.

Bulletin No. 2017–1

January 3, 2017

APPENDIX E
ADDITIONAL CHECKLIST FOR CHURCH PLAN RULING REQUESTS
In order to assist Associate Chief Counsel (Tax Exempt and Government Entities) in processing a church plan ruling request, in
addition to the items in Appendix C, please check the following list.
Yes No N/A
Page ___

1. Is there speciﬁc information showing that the submission is on behalf of a plan established by a named church
or convention or association of churches? The information must show how the sponsoring organization, if not a
church or convention or association of churches, is controlled by, or associated with, the named church or
convention or association of churches. For example, the board of directors of the sponsoring organization may be
made up of members of the named church, or the sponsoring organization might be listed in the church’s ofﬁcial
directory of related organizations whose mission is to further the objectives of the church. In order to be
considered associated with a church or convention or association of churches, the organization must share
common religious bonds and convictions with that church or convention or association of churches.

Yes No N/A
Page ___

2. Is there speciﬁc information showing that the organization that has established the plan is a tax-exempt
organization as described in § 501 of the Code?

Yes No N/A
Page ___

3. Is there a representation that the plan for which the ruling is being requested is qualiﬁed under § 401(a) of the
Code or meets the requirements of § 403(b) of the Code?

Yes No N/A
Page ___

4. Does the ruling request clearly state who are the eligible participants and the name of the employer of these
eligible participants?

Yes No N/A
Page ___

5. Is there a representation that none of the eligible participants are or can be considered employed in connection
with one or more unrelated trades or businesses within the meaning of § 513 of the Code?

Yes No N/A
Page ___

6. Is there a representation that all of the eligible participants are or will be employed by the named church or
convention or association of churches, and will not include employees of for-proﬁt entities? An example of an
eligible employee includes a duly ordained, commissioned, or licensed minister of a church in the exercise of his
or her ministry.

Yes No N/A
Page ___

7. Is there speciﬁc information showing an existing plan committee whose principal purpose or function is the
administration or funding of the plan? This committee must be controlled by or associated with the named church
or convention or association of churches.

Yes No N/A
Page ___

8. Is the composition of the committee stated?

Yes No N/A
Page ___

9. Did the plan sponsor provide a written notice to interested persons that a letter ruling under § 414(e) of the Code
on behalf of a church plan will be submitted to the IRS? (See Rev. Proc. 2011– 44).

Yes No N/A
Page ___

10. Does the ruling request include a copy of the notice?

January 3, 2017

Bulletin No. 2017–1

APPENDIX F
LIST OF SMALL BUSINESS/SELF-EMPLOYED OPERATING DIVISION (SB/SE)
OFFICES TO WHICH TO SEND REQUESTS FOR DETERMINATION LETTERS
SB/SE and W&I taxpayers should send requests for determination letters under this Rev. Proc. 2017–1 to the appropriate SB/SE
ofﬁce listed below. Both the request and its envelope should be marked “DETERMINATION LETTER REQUEST.”
INCOME TAX
Requests for determination letters regarding income tax (including requests from international taxpayers) should be sent to:
Ofﬁce of the Director, Technical Services
Internal Revenue Service
Attn: SE:S:E:TS
Mail Stop 5000
24000 Avila Road
Laguna Niguel, CA 92677
ESTATE AND GIFT TAXES
Requests for determination letters regarding estate and gift tax should be sent to:
Program Manager, Estate & Gift Tax Policy
Internal Revenue Service
SE:S:E:HQ:SEP:E&GP
6340 Variel
Woodland Hills, CA 91367
EMPLOYMENT TAXES
Requests for determination letters regarding employment tax (except for requests for determination of worker status made on
Form SS– 8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, which should
be sent to the address in the Form instructions) should be sent to:
Program Manager, Employment Tax Policy
Internal Revenue Service
Attn: SE:S:E:HQ:SEP
c/o Director, Specialty Examination Policy
5000 Ellin Road, C9-400
Lanham, MD 20706
EXCISE TAXES
Requests for determination letters regarding excise taxes should be sent to:
Program Manager, Excise Tax Policy
Internal Revenue Service
Attn: SE:S:E:HQ:SEP
c/o Director, Specialty Examination Policy
5000 Ellin Road, C9-400
Lanham, MD 20706

Bulletin No. 2017–1

January 3, 2017

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

Speciﬁc revenue procedures and notices supplement the general instructions for requests
explained in section 7 of this revenue procedure and apply to requests for letter rulings or
determination letters regarding the Code sections and matters listed in this section.
Checklists, guideline
revenue procedures, and
notices

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

CODE OR
REGULATION SECTION

REVENUE PROCEDURE AND NOTICE

103, 141 – 150, 1394,
1400L(d), 1400N(a), 1400U–
1, 1400U–3, 7478, and 7871
Issuance of state or local
obligations

Rev. Proc. 96 –16, 1996 –1 C.B. 630 (for a reviewable ruling under § 7478 and a
nonreviewable ruling); Rev. Proc. 88 –31, 1988 –1 C.B. 832 (for approval of areas of chronic
economic distress); and Rev. Proc. 82–26, 1982–1 C.B. 476 (for “on behalf of” and similar
issuers). For approval of areas of chronic economic distress, Rev. Proc. 88 –31 explains how
this request for approval must be submitted to the Assistant Secretary for Housing/Federal
Housing Commissioner of the Department of Housing and Urban Development.

1.166 –2(d)(3)
Uniform express
determination letter for
making election

Rev. Proc. 92– 84, 1992–2 C.B. 489.

Subchapter C-Corporate
Distributions, Adjustments,
Transfers, and
Reorganizations

Rev. Proc. 77–37, 1977–2 C.B. 568, as modiﬁed by Rev. Proc. 89 –30, 1989 –1 C.B. 895,
and as ampliﬁed by Rev. Proc. 77– 41, 1977–2 C.B. 574, Rev. Proc. 83– 81, 1983–2 C.B.
598 (see also Rev. Proc. 2017–3, this bulletin), Rev. Proc. 84 – 42, 1984 –1 C.B. 521
(superseded, in part, as to no-rule areas by Rev. Proc. 2017–3, this bulletin), Rev. Proc.
86 – 42, 1986 –2 C.B. 722, and Rev. Proc. 89 –50, 1989 –2 C.B. 631. But see section 3.01 of
Rev. Proc. 2017–3, which states that the Service will not issue a letter ruling as to whether a
transaction constitutes a reorganization within the meaning of § 368. However, the Service
will issue a letter ruling addressing signiﬁcant issues (within the meaning of section 3.01 of
Rev. Proc. 2017–3) presented in a reorganization within the meaning of § 368. The
information and representations described in these revenue procedures should be included in
a letter ruling request only to the extent that they relate to the signiﬁcant issues with respect
to which the letter ruling is requested. See section 6.03(4).

301
Nonapplicability on sales of
stock of employer to deﬁned
contribution plan

Rev. Proc. 87–22, 1987–1 C.B. 718.

302, 311
Checklist questionnaire

Rev. Proc. 86 –18, 1986 –1 C.B. 551; and Rev. Proc. 77– 41, 1977–2 C.B. 574.

302(b)(4)
Checklist questionnaire

Rev. Proc. 81– 42, 1981–2 C.B. 611.

311
Checklist questionnaire

Rev. Proc. 86 –16, 1986 –1 C.B. 546.

332
Checklist questionnaire

See section 3.01 of Rev. Proc. 2017–3, this Bulletin, which states that the Service will not issue a
letter ruling on whether a corporate distribution qualiﬁes for nonrecognition treatment under
§ 332. However, the Service will issue a letter ruling addressing signiﬁcant issues (within the
meaning of section 3.01 of Rev. Proc. 2017–3) presented in a transaction described in § 332. The
information and representations described in Rev. Proc. 90 –52, 1990 –2 C.B. 626, should be
included in a letter ruling request only to the extent that they relate to the signiﬁcant issues with
respect to which the letter ruling is requested. See section 6.03(4).

January 3, 2017

Bulletin No. 2017–1

338
Extension of time to make
elections

Rev. Proc. 2003–33, 2003–1 C.B. 803, provides guidance as to how an automatic extension of
time under § 301.9100 –3 of the Treasury Regulations may be obtained to ﬁle elections under
§ 338. This revenue procedure also informs taxpayers who do not qualify for the automatic
extension of the information necessary to obtain a letter ruling.

351
Checklist questionnaire

See section 3.01 of Rev. Proc. 2017–3, this Bulletin, which states that the Service will not issue a
letter ruling on whether certain transfers to controlled corporations qualify for nonrecognition
treatment under § 351. However, the Service will issue a letter ruling addressing signiﬁcant
issues (within the meaning of section 3.01 of Rev. Proc. 2017–3) presented in a transaction
described in § 351. The information and representations described in Rev. Proc. 83–59, 1983–2
C.B. 575, should be included in a letter ruling request only to the extent that they relate to the
signiﬁcant issues with respect to which the letter ruling is requested. See section 6.03(4).

355
Checklist questionnaire

See section 3.01 of Rev. Proc. 2017–3, this Bulletin, which states that the Service will not issue a
letter ruling on whether certain distributions of controlled corporation stock qualify for
nonrecognition treatment under § 355. However, the Service will issue a letter ruling addressing
signiﬁcant issues (within the meaning of section 3.01 of Rev. Proc. 2017–3) presented in a
transaction described in § 355. The information and representations described in Rev. Proc.
96 –30, 1996 –1 C.B. 696, should be included in a letter ruling request only to the extent that they
relate to the signiﬁcant issues with respect to which the letter ruling is requested. See section
6.03(4).

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

See section 3.01 of Rev. Proc. 2017–3, this Bulletin, which states that the Service will not issue a
letter ruling as to whether a transaction constitutes a reorganization, including a recapitalization
within the meaning of § 368(a)(1)(E) (or a transaction that qualiﬁes under § 1036). However, the
Service will issue a letter ruling addressing signiﬁcant issues (within the meaning of section 3.01
of Rev. Proc. 2017–3) presented in a transaction described in § 368(a)(1)(E) (or in a transaction
described in § 1036). The information and representations described in Rev. Proc. 81– 60, 1981–2
C.B. 680, should be included in a letter ruling request only to the extent that they relate to the
signiﬁcant issues. See section 6.03(4).

412, 4971(b)
Additional tax (on failure to
meet minimum funding
standards)
412(d)
Minimum funding standards

Rev. Proc. 81– 44, 1981–2 C.B. 618, provides guidance for requesting a waiver of the 100
percent tax imposed under § 4971(b) on a pension plan that fails to meet the minimum funding
standards of § 412.

412(c)(7)(B)
Minimum funding standards restrictions on plan
amendments

Rev. Proc. 79 – 62, 1979 –2 C.B. 576 provides guidance for requesting a determination that a plan
amendment is reasonable and provides for only de minimis increases in plan liabilities in
accordance with former § 412(f)(2)(A) (now § 412(c)(7)(B)(i)).

412(d)(2)
Minimum funding standards certain retroactive plan
amendments

Rev. Proc. 94 – 42, 1994 –1 C.B. 717, sets forth procedures under which a plan sponsor may ﬁle
notice with and obtain approval for a retroactive amendment described in § 412(d)(2) (formerly
§ 412(c)(8)) and § 302(d)(2) of the Employee Retirement Income Security Act of 1974 (ERISA)
that reduces prior accrued beneﬁts.

414(e)
Church plans

Rev. Proc. 2011– 44, 2011–39 I.R.B. 445 provides supplemental procedures for requesting a
ruling relating to church plans under section 414(e). This revenue procedure provides that plan
participants and other interested persons must receive a notice when a letter ruling is requested
and a copy of the notice must be submitted as part of the ruling request. It also provides
procedures for the Service to receive and consider comments about the ruling request from
interested persons. See Appendix E.

414(r)
Qualiﬁed separate lines
of business – administrative
scrutiny

Rev. Proc. 93– 41, 1993–2 C.B. 536, sets forth procedures relating to the issuance of an
administrative scrutiny determination, which is a determination by the Service as to whether a
separate line of business satisﬁes the requirement of administrative scrutiny, within the meaning
of § 1.414(r)– 6, for the testing year.

461(h)
Alternative method for
the inclusion of common
improvement costs in basis

Rev. Proc. 92–29, 1992–1 C.B. 748.

Bulletin No. 2017–1

Rev. Proc. 2004 –15, 2004 –1 C.B. 490, provides guidance for requesting a waiver of the
minimum funding standards.

January 3, 2017

482
Advance pricing agreements

Rev. Proc. 2015– 40, 2015–35 I.R.B. 236, and Rev. Proc. 2015– 41, 2015–35 I.R.B. 263.

521
Appeal procedure with
regard to adverse
determination letters
and revocation or
modiﬁcation of exemption
letter rulings and
determination letters

Rev. Proc. 2017–5, this Bulletin.

817(h)
Closing agreement for
inadvertent failures of
variable contracts

Rev. Proc. 2008 – 41, 2008 –2 C.B. 155.

860
Self Determination of
Deﬁciency
Dividend

Rev. Proc. 2009 –28, 2009 –20 I.R.B. 1011.

877, 2107, and 2501(a)(3)
Individuals who lose
U.S. citizenship or cease
to be taxed as long-term U.S.
residents with a principal
purpose to avoid U.S. taxes

Notice 97–19, 1997–1 C.B. 394, as modiﬁed by Notice 98 –34, 1998 –2 C.B. 29, and as
obsoleted in part by Notice 2005–36, 2005–1 C.B. 1007.

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

Rev. Proc. 2013–30, 2013–36 I.R.B. 173.

1362(b)(5) and 301.7701–3
Automatic
extensions of time for late S
corporation election and late
corporate entity classiﬁcation

Rev. Proc. 2013–30, 2013–36 I.R.B. 173.

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

Rev. Proc. 2009 –31, 2009 –27 I.R.B. 107.

1.1502–75(b)
Consent to Be Included in a
Consolidated Income Tax
Return

Rev. Proc. 2014 –24, 2014 –13 I.R.B. 879, provides a determination that certain subsidiary
corporations are treated as if they had ﬁled a Form 1122, Authorization and Consent of
Subsidiary Corporation To Be Included in a Consolidated Income Tax Return, even though they
failed to do so. This revenue procedure also informs taxpayers who do not qualify for the
automatic determination of the procedure for requesting such determination.

1.1502–76(a)(1)
Consent to ﬁle a consolidated
return where member(s) of the
afﬁliated group use a 52–53
week taxable year

Rev. Proc. 89 –56, 1989 –2 C.B. 643, as modiﬁed by Rev. Proc. 2006 –21, 2006 –1 C.B. 1050.

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

Rev. Proc. 2002–32, 2002–1 C.B. 959, as modiﬁed by Rev. Proc. 2006 –21, 2006 –1 C.B. 1050.

January 3, 2017

Bulletin No. 2017–1

1552
Consent to elect or change
method of allocating afﬁliated
group’s consolidated Federal
income tax liability

Rev. Proc. 90 –39, 1990 –2 C.B. 365, as clariﬁed by Rev. Proc. 90 –39A, 1990 –2 C.B. 367, and
as modiﬁed by Rev. Proc. 2006 –21, 2006 –1 C.B. 1050.

2642
Allocations of generationskipping transfer tax
exemption

Rev. Proc. 2004 – 46, 2004 –2 C.B. 142, provides an alternative method for requesting relief to
make a late allocation of the generation-skipping transfer tax exemption. This revenue procedure
also informs taxpayers who are denied relief or who are outside the scope of the revenue
procedure of the information necessary for obtaining a letter ruling.

2652(a)(3)
Reverse qualiﬁed terminable
interest property elections

Rev. Proc. 2004 – 47, 2004 –2, C.B. 169, provides an alternative method for certain taxpayers to
obtain an extension of time to make a late reverse qualiﬁed terminable interest property election
under § 2652(a)(3). This revenue procedure also informs taxpayers who are denied relief or who
are outside the scope of the revenue procedure of the information necessary to obtain a letter
ruling.

4980B
Failure to satisfy continuation
coverage requirements of
group health plans

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

7701
Relief for a late initial
classiﬁcation election for a
newly formed entity

Rev. Proc. 2009 – 41, 2009 –39 I.R.B. 439.

7701(a)(40) and 7871(d)
Indian tribal governments and
subdivision of Indian tribal
governments

Rev. Proc. 84 –37, 1984 –1 C.B. 513, as modiﬁed by Rev. Proc. 86 –17, 1986 –1 C.B. 550, and
Rev. Proc. 2017–1, this revenue procedure, (provides guidelines for obtaining letter rulings
recognizing Indian tribal government or tribal government subdivision status; also provides for
inclusion in list of federally recognized Indian tribes published annually by the Department of the
Interior, Bureau of Indian Affairs, or in list of recognized subdivisions of Indian tribal
governments in revised versions of Rev. Proc. 84 –36, 1984 –1 C.B. 510, as modiﬁed and made
permanent by Rev. Proc. 86 –17).

301.7701–2(a)
Classiﬁcation of undivided
fractional interests in rental
real estate

Rev. Proc. 2002–22, 2002–1 C.B. 733 (speciﬁes the conditions under which the Service will
consider a letter ruling request that an undivided fractional interest in rental real property (other
than a mineral property as deﬁned in § 614) is not an interest in a business entity).

301.7701–3
Automatic extensions of time
for late S corporation election
and late corporate entity
classiﬁcation

Rev. Proc. 2013–30, 2013–36 I.R.B. 173.

301.9100 –3
Extension of time to make
entity classiﬁcation election

Rev. Proc. 2009 – 41, 2009 –39 I.R.B. 439.

7702
Closing agreement for failure
to account for charges for
qualiﬁed additional beneﬁts

Rev. Proc. 2010 –26, 2010 –30 I.R.B. 91.

7702
Closing agreement for failed
life insurance contracts

Rev. Proc. 2008 – 40, 2008 –2 C.B. 151.

Bulletin No. 2017–1

January 3, 2017

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

Rev. Proc. 2008 –39, 2008 –2 C.B. 143.

7704(g)
Revocation of election

Notice 98 –3, 1998 –1 C.B. 333.

SUBJECT MATTERS

REVENUE PROCEDURE

Accounting periods; changes
in period

Rev. Proc. 2002–39, 2002–1 C.B. 1046, as clariﬁed and modiﬁed by Notice 2002–72, 2002–2
C.B. 843, as modiﬁed by Rev. Proc. 2003–34, 2003–1 C.B. 856, and modiﬁed by Rev. Proc.
2003–79, 2003–2 C.B. 1036; and Rev. Proc. 2017–1, this revenue procedure, for which sections
1, 2.01, 2.02, 2.05, 3.03, 5.02, 6.03, 6.05, 6.07, 6.11, 7.01(1), 7.01(2), 7.01(3), 7.01(4), 7.01(5),
7.01(6), 7.01(8), 7.01(9), 7.01(10), 7.01(13), 7.01(14), 7.01(15), 7.02(2), 7.02(4), 7.02(5), 7.02(6),
7.04, 7.05, 7.06, 7.08, 8.01, 8.03, 8.04, 8.05, 8.06, 10, 11, 15, 17, 18, Appendix A, and Appendix
G are applicable.

Classiﬁcation of liquidating
trusts

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

Earnings and proﬁts
determinations

Rev. Proc. 75–17, 1975–1 C.B. 677; Rev. Proc. 2017–1, this revenue procedure, sections 2.05,
3.03, 7, 8, and 10.05; and Rev. Proc. 2017–3, this Bulletin, section 3.01.

Estate, gift, and generationskipping transfer tax issues

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

Intercompany transactions;
election not to defer gain or
loss

Rev. Proc. 2009 –31, 2009 –27 I.R.B. 107.

Leveraged leasing

Rev. Proc. 2001–28, 2001–1 C.B. 1156, and Rev. Proc. 2001–29, 2001–1 C.B. 1160.

Rate orders; regulatory
agency; normalization

A letter ruling request that involves a question of whether a rate order that is proposed or issued
by a regulatory agency will meet the normalization requirements of § 168(f)(2) (pre-Tax Reform
Act of 1986, § 168(e)(3)) and former §§ 46(f) and 167(l) ordinarily will not be considered unless
the taxpayer states in the letter ruling request whether—
(1) the regulatory authority responsible for establishing or approving the taxpayer’s rates has
reviewed the request and believes that the request is adequate and complete; and
(2) the taxpayer will permit the regulatory authority to participate in any Associate ofﬁce
conference concerning the request.
If the taxpayer or the regulatory authority informs a consumer advocate of the request for a
letter ruling and the advocate wishes to communicate with the Service regarding the request, any
such communication should be sent to: Internal Revenue Service, Associate Chief Counsel
(Procedure and Administration), Attn: CC:PA:LPD:DRU, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044 (or, if a private delivery service is used: Internal Revenue Service,
Associate Chief Counsel (Procedure and Administration), Attn: CC:PA:LPD:DRU, Room 5336,
1111 Constitution Ave., NW, Washington, DC 20224). These communications will be treated as
third party contacts for purposes of § 6110.

Unfunded deferred
compensation

January 3, 2017

Rev. Proc. 71–19, 1971–1 C.B. 698, as ampliﬁed by Rev. Proc. 92– 65, 1992–2 C.B. 428. See
Rev. Proc. 92– 64, 1992–2 C.B. 422, as modiﬁed by Notice 2000 –56, 2000 –2 C.B. 393, for the
model trust for use in Rabbi Trust Arrangements.

100

Bulletin No. 2017–1

Safe harbor revenue
procedures

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

CODE OR REGULATION
SECTION

REVENUE PROCEDURE

23 and 36C
Adoption credit for foreign
adoptions

Rev. Proc. 2010 –31, 2010 – 40 I.R.B. 413.

103 and 141–150
Issuance of state or local
obligations

Rev. Proc. 2016 – 44, 2016 –36 I.R.B. 316 (management contracts); and Rev. Proc. 2007– 47,
2007–2 C.B. 108 (research agreements).

61
Utility Cost Recovery
Securitization Transactions

Rev. Proc. 2005– 62, 2005–2 C.B. 507.

137
Exclusion for Employer
Reimbursements

Rev. Proc. 2010 –31, 2010 – 40 I.R.B. 413.

162
Restaurant Small Wares Costs

Rev. Proc. 2002–12, 2002–1 C.B. 374.

165
Losses from corrosive drywall

Rev. Proc. 2010 –36, 2010 – 42 I.R.B. 439.

165
Theft losses from fraudulent
investment arrangements

Rev. Proc. 2009 –20, 2009 –14 I.R.B. 749; Rev. Proc. 2011–58, 2011–50 I.R.B. 849 (modiﬁes
Rev. Proc. 2009 –20).

167 and 168
Primary use of certain cable
network assets described in
asset class 48.42 of Rev. Proc.
87–56, 1987–2 C.B. 674

Section 9 of Rev. Proc. 2015–12, 2015–2 I.R.B. 266.

168
Depreciation of original
and replacement tires
for certain vehicles

Rev. Proc. 2002–27, 2002–1 C.B. 802.

168
Depreciation of ﬁber optic
node and trunk line of a cable
system operator

Section 8 of Rev. Proc. 2015–12, 2015–2 I.R.B. 266.

168
Recovery periods of certain
tangible assets used by
wireless telecommunication
carriers

Rev. Proc. 2011–22, 2011–18 I.R.B. 737

263, 471
Treatment of rotable spare
parts as inventory or
depreciable property

Rev. Proc. 2007– 48, 2007–2 C.B. 110

263
Safe harbor methods for track
structure expenditures

Rev. Proc. 2002– 65, 2002–2 C.B. 700; Rev. Proc. 2001– 46, 2001–2 C.B. 263.

Bulletin No. 2017–1

101

January 3, 2017

263
Determination whether
expenditures to maintain,
replace or improve wireline
network assets must be
capitalized

Rev. Proc. 2011–27, 2011–18 I.R.B. 740.

263
Determination whether
expenditures to maintain,
replace or improve wireless
network assets must be
capitalized

Rev. Proc. 2011–28, 2011–18 I.R.B. 743.

263
Allocating success-based fees
paid in business acquisitions
or reorganizations

Rev. Proc. 2011–29, 2011–18 I.R.B. 746.

263
Electric trade and distribution
property assets

Rev. Proc. 2011– 43, 2011–37 I.R.B. 326.

263A
Safe harbor methods for
certain motor vehicle
dealerships

Rev. Proc. 2010 – 44, 2010 – 49 I.R.B. 811.

280A
Safe harbor method to
determine the amount of
deductible expenses
attributable to certain business
use of a residence

Rev. Proc. 2013–13, 2013– 6 I.R.B. 478.

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

Rev. Proc. 95–27, 1995–1 C.B. 704.

446
Film producer’s treatment of
certain creative property costs

Rev. Proc. 2004 –36, 2004 –1 C.B. 1063.

446
Bank’s treatment of
uncollected interest

Rev. Proc. 2007–33, 2007–1 C.B. 1289.

448
Nonaccrual-experience
method - book safe harbor
method

Rev. Proc. 2011– 46, 2011– 42 I.R.B. 518.

451
Safe harbor for capital cost
reduction payments

Rev. Proc. 2002–36, 2002–1 C.B. 993

451
Treatment of gift cards issued
to customers in exchange for
returned merchandise

Rev. Proc. 2011–17, 2011–5 I.R.B. 441.

January 3, 2017

102

Bulletin No. 2017–1

451
Safe harbor for certain
minors’ trusts established
under the Indian Gaming
Regulatory Act (U.S.C.
§§ 2701–2721)

Rev. Proc. 2011–56, 2011– 49 I.R.B. 834.

461
Safe harbor method for
payroll tax liabilities for
compensation

Rev. Proc. 2008 –25, 2008 –1 C.B. 686.

471
Estimating inventory
shrinkage

Rev. Proc. 98 –29, 1998 –1 C.B. 857.

471
Valuation of automobile
dealer vehicle parts inventory

Rev. Proc. 2002–17, 2002–1 C.B. 676.

471
Valuation of remanufactured
cores

Rev. Proc. 2003–20, 2003–1 C.B. 445.

471
Valuation of heavy equipment
dealer parts inventory

Rev. Proc. 2006 –14, 2006 –1 C.B. 350.

471
Rolling-average method of
accounting for inventories

Rev. Proc. 2008 – 43, 2008 –2 C.B. 186.

475
Eligible positions

Rev. Proc. 2007– 41, 2007–1 C.B. 1492.

584(a)
Qualiﬁcation of a proposed
common trust fund plan

Rev. Proc. 92–51, 1992–1 C.B. 988.

642(c)(5)
Qualiﬁcation of trusts as
pooled income funds

Rev. Proc. 88 –53, 1988 –2 C.B. 712.

664
Charitable remainder trusts

Rev. Proc. 2005–24, 2005–1 C.B. 909, as modiﬁed by Notice 2006 –15, 2006 –1 C.B. 501.

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

Rev. Proc. 2003–53, 2003–2 C.B. 230; Rev. Proc. 2003–54, 2003–2 C.B. 236; Rev. Proc.
2003–55, 2003–2 C.B. 242; Rev. Proc. 2003–56, 2003–2 C.B. 249; Rev. Proc. 2003–57, 2003–2
C.B. 257; Rev. Proc. 2003–58, 2003–2 C.B. 262; Rev. Proc. 2003–59, 2003–2 C.B. 268; Rev.
Proc. 2003– 60, 2003–2 C.B. 274.

Bulletin No. 2017–1

103

January 3, 2017

File Type	application/pdf
File Title	IRB 2017-01 (Rev. January 3, 2017)
Subject	Internal Revenue Bulletin
Author	SE:W:CAR:MP:P:SPA
File Modified	2017-07-26
File Created	2017-07-26