Revenue Procedure 2021-1

HIGHLIGHTS
OF THIS ISSUE

Bulletin No. 2021–1
January 4, 2021

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

ADMINISTRATIVE

EMPLOYEE PLANS

Rev. Proc. 2021-1, page 1.

Rev. Proc. 2021-4, page 157.

This procedure contains revised procedures for letter rulings and information letters issued by the Associate Chief
Counsel (Corporate), Associate Chief Counsel (Employee
Benefits, Exempt Organizations, and Employment Taxes),
Associate Chief Counsel (Financial Institutions and Products), Associate Chief Counsel (Income Tax and Accounting), Associate Chief Counsel (International), Associate
Chief Counsel (Passthroughs and Special Industries), and
Associate Chief Counsel (Procedure and Administration).
This procedure also contains revised procedures for determination letters issued by the Large Business and International Division, Small Business/Self Employed Division,
Wage and Investment Division, and Tax Exempt and Government Entities Division. Rev. Proc. 2020-1 superseded.

This document updates Rev. Proc. 2020-4, 2020-1 I.R.B. 148,
relating to the types of advice the IRS provides to taxpayers on
issues under the jurisdiction of the Commissioner, Tax Exempt
and Government Entities Division, Employee Plans Rulings and
Agreements, and the procedures that apply to requests for
determination letters and private letter rulings.

Rev. Proc. 2021-2, page 116.
This procedure explains when and how an Associate office
within the Office of Chief Counsel provides technical advice,
conveyed in technical advice memoranda (TAMs). It also
explains the rights that a taxpayer has when a field office
requests a TAM regarding a tax matter. Rev. Proc. 2020-2
superseded.

Rev. Proc. 2021-3, page 140.
The revenue procedure provides a revised list of areas
of the Code 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
(Passthroughs and Special Industries), the Associate Chief
Counsel (Procedure and Administration), and the Associate
Chief Counsel (Employee Benefits, Exempt Organizations
and Employment Taxes) relating to matters on which the
Service will not issue letter rulings or determination letters.
Rev. Proc. 2020-3, 2020-1 I.R.B. 131 is superseded.

Finding Lists begin on page ii.

EXEMPT ORGANIZATIONS
Rev. Proc. 2021-5, page 250.
This revenue procedure sets forth procedures for issuing determination letters on issues under the jurisdiction
of the Director, Exempt Organizations (EO) Rulings and
Agreements. Specifically, it explains the procedures for
issuing determination letters on tax-exempt status (in
response to applications for recognition of exemption
from Federal income tax under § 501 or § 521 other
than those subject to Rev. Proc. 2021-4, this Bulletin
(relating to pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans)), private
foundation status, and other determinations related to
exempt organizations. These procedures also apply
to revocation or modification of determination letters.
This revenue procedure also provides guidance on the
exhaustion of administrative remedies for purposes of
declaratory judgment under § 7428. Finally, this revenue procedure provides guidance on applicable user
fees for requesting determination letters.

INCOME TAX
Rev. Proc. 2021-7, page 290.
Areas in which rulings will not be issued, Associate
Chief Counsel (International).

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:

Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).

Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

January 4, 2021

Bulletin No. 2021–1

Part III
26 CFR § 601.201: Rulings and determination letters.

Rev. Proc. 2021-1
TABLE OF CONTENTS
SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
.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 Letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
.02 Closing agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
.03 Determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
.04 Information letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
.05 Oral advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
(1) No oral rulings and no written rulings in response to oral requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
(2) Discussion possible on substantive issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
(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 Issues under the jurisdiction of the Associate Chief Counsel (Corporate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

 ,VVXHVXQGHUWKHMXULVGLFWLRQRIWKH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQV
DQG(PSOR\PHQW7D[HV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
.03 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and Products) . . . . . . . . . . . . . . . . .11

 ,VVXHVXQGHUWKHMXULVGLFWLRQRIWKH$VVRFLDWH&KLHI&RXQVHO,QFRPH7D[DQG$FFRXQWLQJ . . . . . . . . . . . . . . . . . . . . . .11
.05 Issues under the jurisdiction of the Associate Chief Counsel (International). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
.06 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special Industries) . . . . . . . . . . . . . . . .12
.07 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration) . . . . . . . . . . . . . . . . . . . . .12
SECTION 4. ON WHAT ISSUES MUST WRITTEN ADVICE BE REQUESTED UNDER
DIFFERENT PROCEDURES? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

 ,VVXHVLQYROYLQJDOFRKROWREDFFRDQG¿UHDUPVWD[HV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

 &HUWDLQLVVXHVLQYROYLQJHPSOR\HHSODQVLQGLYLGXDOUHWLUHPHQWDFFRXQWV,5$VDQGH[HPSWRUJDQL]DWLRQV . . . . . . . . .12
SECTION 5. UNDER WHAT CIRCUMSTANCES DO THE ASSOCIATE OFFICES ISSUE LETTER RULINGS? . . . . . .13

 ,QLQFRPHDQGJLIWWD[PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
.02 Special relief for late S corporation and related elections in lieu of letter ruling process . . . . . . . . . . . . . . . . . . . . . . . . .13

 $†UHTXHVWIRUH[WHQVLRQRIWLPHIRUPDNLQJDQHOHFWLRQRUIRURWKHUUHOLHI . . . . . . . . . . . . . . . . . . . . . . . . . . .13
(1) Format of request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
(2) Period of limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
 7D[SD\HUPXVWQRWLI\WKH$VVRFLDWHRI¿FHLIH[DPLQDWLRQRILWVUHWXUQEHJLQVZKLOH
the request is pending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
 $VVRFLDWHRI¿FHZLOOQRWLI\WKHH[DPLQDWLRQDJHQW$SSHDOVRI¿FHURUDWWRUQH\RI
D†UHTXHVWLIWKHWD[SD\HU¶VUHWXUQLVEHLQJH[DPLQHGE\D¿HOGRI¿FHRU
LVEHLQJFRQVLGHUHGE\DQ$SSHDOVRI¿FHRUD)HGHUDOFRXUW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009-41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
 5HOLHIIRUODWHLQLWLDOFODVVL¿FDWLRQHOHFWLRQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
.04 Determinations under § 999(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
.05 In matters involving § 367 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

 ,QHVWDWHWD[PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

 ,QPDWWHUVLQYROYLQJDGGLWLRQDOHVWDWHWD[XQGHU†$F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

 ,QPDWWHUVLQYROYLQJTXDOL¿HGGRPHVWLFWUXVWVXQGHU†$. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

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1

January 4, 2021










.11
.12
.13



.17

,QJHQHUDWLRQVNLSSLQJWUDQVIHUWD[PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
,QHPSOR\PHQWDQGH[FLVHWD[PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
In procedural and administrative matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
In Indian tribal government matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
 'H¿QLWLRQRI,QGLDQWULEDOJRYHUQPHQW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
(2) Inclusion in list of tribal governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
On constructive sales price under § 4216(b) or § 4218(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
,QH[HPSWRUJDQL]DWLRQVPDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
,QTXDOL¿HGUHWLUHPHQWSODQDQG,5$PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
$UHTXHVWWRUHYRNHDQHOHFWLRQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Under some circumstances before the issuance of a regulation or other published guidance . . . . . . . . . . . . . . . . . . . . . .18
(1) Answer is clear or is reasonably certain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
(2) Answer is not reasonably certain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

SECTION 6. UNDER WHAT CIRCUMSTANCES DOES THE SERVICE NOT ISSUE
LETTER RULINGS OR DETERMINATION LETTERS? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

 2UGLQDULO\QRWLIWKHUHTXHVWLQYROYHVDQLVVXHXQGHUH[DPLQDWLRQRUFRQVLGHUDWLRQRULQOLWLJDWLRQ . . . . . . . . . . . . . . . . .18
.02 Ordinarily not in certain areas because of factual nature of the problem or for other reasons. . . . . . . . . . . . . . . . . . . . . .19
.03 Ordinarily not on part of an integrated transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
(1) General rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
 6LJQL¿FDQWLVVXHUXOLQJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
(3) Submission requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
.04 Ordinarily not on which of two entities is a common law employer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
.05 Ordinarily not to business associations or groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

 2UGLQDULO\QRWZKHUHWKHUHTXHVWGRHVQRWDGGUHVVWKHWD[VWDWXVOLDELOLW\RUUHSRUWLQJREOLJDWLRQVRI
the requester . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
.07 Ordinarily not to foreign governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

 2UGLQDULO\QRWRQ)HGHUDOWD[FRQVHTXHQFHVRISURSRVHGOHJLVODWLRQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
.09 Ordinarily not before issuance of a regulation or other published guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
.10 Not on frivolous issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
.11 No “comfort” letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
.12 Not on alternative plans or hypothetical situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

 1RWRQSURSHUW\FRQYHUVLRQVDIWHUUHWXUQ¿OHG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
.14 Circumstances under which determination letters are not issued by a Director. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
SECTION 7. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
.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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
(3) Analysis of material facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
(4) Statement regarding whether same issue is presented in any return and additional information required
for § 301.9100 requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
(5) Statement regarding whether same or similar issue was previously ruled on or whether
a request involving it was submitted or is currently pending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
 6WDWHPHQWUHJDUGLQJLQWHUSUHWDWLRQRIDVXEVWDQWLYHSURYLVLRQRIDQLQFRPHRUHVWDWHWD[WUHDW\ . . . . . . . . . . . . . . . .26
(7) Statement regarding involvement of a transactional party located in a foreign country . . . . . . . . . . . . . . . . . . . . . .26
(8) 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. . . . . . . . . . . . .27
(9) Statement of supporting authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
(10) Statement of contrary authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
(11) Statement identifying pending legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
(12) Statement identifying information to be deleted from the public inspection copy of letter ruling or
determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
6LJQDWXUHE\WD[SD\HURUDXWKRUL]HGUHSUHVHQWDWLYH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
$XWKRUL]HGUHSUHVHQWDWLYHV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

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(15) Power of attorney and declaration of representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
(16) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
(17) Sample format for a letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
&KHFNOLVWIRUOHWWHUUXOLQJUHTXHVWV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Additional procedural information required with request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
(1) To request separate letter rulings for multiple issues in a single situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
(2) Power of attorney used to indicate recipient of a copy or copies of a letter ruling or a determination letter. . . . . . .33
(3) To request a particular conclusion on a proposed transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
 7RUHTXHVWH[SHGLWHGKDQGOLQJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
 7RUHTXHVWWKHUHFHLSWRIDQ\GRFXPHQWUHODWHGWROHWWHUUXOLQJUHTXHVWE\ID[HOHFWURQLFIDFVLPLOH
or encrypted email attachment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
(6) To request a conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
/HWWHUUXOLQJUHTXHVWVLQYROYLQJZHOIDUHEHQH¿WIXQGVLQFOXGLQJYROXQWDU\HPSOR\HHV¶
EHQH¿FLDU\DVVRFLDWLRQV9(%$V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Submitting request for letter ruling or determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
(1) Submission by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
(2) Submission by electronic facsimile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
(3) Submission by encrypted email attachment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Pending letter ruling requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
 &LUFXPVWDQFHVXQGHUZKLFKWKHWD[SD\HUZLWKDSHQGLQJOHWWHUUXOLQJUHTXHVWPXVWQRWLI\
WKH$VVRFLDWHRI¿FH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
 7D[SD\HUPXVWQRWLI\WKH$VVRFLDWHRI¿FHLIDUHWXUQLV¿OHGDQGPXVWDWWDFKWKHUHTXHVWWRWKHUHWXUQ . . . . . . . . . .39
When to attach letter ruling or determination letter to return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
+RZWRFKHFNRQVWDWXVRIUHTXHVWIRUOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
5HTXHVWIRUOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUPD\EHZLWKGUDZQRU$VVRFLDWHRI¿FHPD\GHFOLQHWR
issue letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
 1RWL¿FDWLRQRIDSSURSULDWH6HUYLFHRI¿FLDO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

SECTION 8. HOW DO THE ASSOCIATE OFFICES HANDLE LETTER RULING REQUESTS? . . . . . . . . . . . . . . . . . . .40
.01 Technical Services Support Branch receives, initially controls, and refers the requests to


WKHDSSURSULDWH$VVRFLDWHRI¿FH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

 %UDQFKUHSUHVHQWDWLYHRIWKH$VVRFLDWHRI¿FHFRQWDFWVWD[SD\HUZLWKLQFDOHQGDUGD\V. . . . . . . . . . . . . . . . . . . . . . . . .40

 'HWHUPLQHVLIWUDQVDFWLRQFDQEHPRGL¿HGWRREWDLQIDYRUDEOHOHWWHUUXOLQJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

 1RWERXQGE\LQIRUPDORSLQLRQH[SUHVVHG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
.05 May request additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
(1) Additional information must be submitted within 21 calendar days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
 ([WHQVLRQRIUHSO\SHULRGLIMXVWL¿HGDQGDSSURYHG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
 /HWWHUUXOLQJUHTXHVWFORVHGLIWKHWD[SD\HUGRHVQRWVXEPLWDGGLWLRQDOLQIRUPDWLRQ . . . . . . . . . . . . . . . . . . . . . . . . .42
(4) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
 7UDQVPLWWLQJUHTXHVWDQGVXEPLWWLQJDGGLWLRQDOLQIRUPDWLRQE\ID[HOHFWURQLFIDFVLPLOH
or encrypted email attachment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
(6) Submitting additional information by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
(7) Identifying information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

 1HDUWKHFRPSOHWLRQRIWKHUXOLQJSURFHVVDGYLVHVWKHWD[SD\HURIFRQFOXVLRQVDQGLIWKH$VVRFLDWHRI¿FHV
ZLOOUXOHDGYHUVHO\RIIHUVWKHWD[SD\HUWKHRSSRUWXQLW\WRZLWKGUDZWKHOHWWHUUXOLQJUHTXHVW . . . . . . . . . . . . . . . . . . . . . .43

 0D\UHTXHVWWKDWWD[SD\HUVXEPLWGUDIWSURSRVHGOHWWHUUXOLQJQHDUWKHFRPSOHWLRQRIWKHUXOLQJSURFHVV . . . . . . . . . . . .43
.08 Issues separate letter rulings for substantially identical letter rulings, but generally issues
a single letter ruling for related § 301.9100 letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
(1) Substantially identical letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
(2) Related § 301.9100 letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44

 6HQGVDFRS\RIWKHOHWWHUUXOLQJWRDSSURSULDWH6HUYLFHRI¿FLDO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
SECTION 9. WHAT ARE THE SPECIFIC AND ADDITIONAL PROCEDURES FOR A REQUEST FOR
A CHANGE IN METHOD OF ACCOUNTING FROM THE ASSOCIATE OFFICES? . . . . . . . . . . . . . . . . . .44
.01 Automatic and non-automatic change in method of accounting requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
(1) Automatic change in method of accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44

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(2) Non-automatic change in method of accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
.02 Ordinarily only one change in method of accounting on a Form 3115, Application for Change in Accounting Method,
DQGDVHSDUDWH)RUPIRUHDFKWD[SD\HUDQGIRUHDFKVHSDUDWHDQGGLVWLQFWWUDGHRUEXVLQHVV . . . . . . . . . . . . . . . . . .45
.03 Information required with a Form 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
(1) Facts and other information requested on Form 3115 and in applicable revenue procedures . . . . . . . . . . . . . . . . . .45
(2) Statement of contrary authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
(3) Copies of all contracts, agreements, and other documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
(4) Analysis of material facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
 ,QIRUPDWLRQUHJDUGLQJZKHWKHUVDPHLVVXHLVLQDQHDUOLHUUHWXUQXQGHUH[DPLQDWLRQ . . . . . . . . . . . . . . . . . . . . . . . .46
(6) Statement regarding prior requests for a change in method of accounting and other pending requests . . . . . . . . . .47
(7) Statement identifying pending legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
 $XWKRUL]HGUHSUHVHQWDWLYHV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
(9) Power of attorney and declaration of representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
7D[,QIRUPDWLRQ$XWKRUL]DWLRQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
(11) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
.04 Additional procedural information required in certain circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
(1) Recipients of original and copy of change in method of accounting correspondence . . . . . . . . . . . . . . . . . . . . . . . .48
 7RUHTXHVWH[SHGLWHGKDQGOLQJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
(3) To request the receipt of the change in method of accounting letter ruling or any other
FRUUHVSRQGHQFHUHODWHGWR)RUPE\ID[HOHFWURQLFIDFVLPLOHRUHQFU\SWHGHPDLODWWDFKPHQW . . . . . . . . . . . . .48
(4) To request a conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
.05 Submitting non-automatic Forms 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
(1) Submission by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
(2) Submission by electronic facsimile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
(3) Submission by encrypted email attachment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
.06 Submitting automatic Forms 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
(1) Submission by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
 6XEPLVVLRQE\ID[ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
.07 Technical Services Support Branch receives, initially controls, and refers the Form 3115 to
WKHDSSURSULDWH$VVRFLDWHRI¿FH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
.08 Additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
(1) Reply period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
 5HTXHVWIRUH[WHQVLRQRIUHSO\SHULRG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
(3) Penalties of perjury statement for additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
(4) Identifying information included in additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
 7UDQVPLWWLQJUHTXHVWDQGVXEPLWWLQJDGGLWLRQDOLQIRUPDWLRQE\ID[HOHFWURQLFIDFVLPLOH
or encrypted email attachment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
(6) Submitting additional information by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
 )DLOXUHWRWLPHO\VXEPLWDGGLWLRQDOLQIRUPDWLRQWRDQ$VVRFLDWHRI¿FH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
 &LUFXPVWDQFHVLQZKLFKWKHWD[SD\HUPXVWQRWLI\WKH$VVRFLDWHRI¿FH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
 'HWHUPLQHVLISURSRVHGPHWKRGRIDFFRXQWLQJFDQEHPRGL¿HGWRREWDLQIDYRUDEOHOHWWHUUXOLQJ . . . . . . . . . . . . . . . . . . .54
 1HDUWKHFRPSOHWLRQRISURFHVVLQJWKH)RUPDGYLVHVWKHWD[SD\HULIWKH$VVRFLDWHRI¿FHZLOO
UXOHDGYHUVHO\DQGRIIHUVWKHWD[SD\HUWKHRSSRUWXQLW\WRZLWKGUDZ)RUP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
 1RQDXWRPDWLF)RUPPD\EHZLWKGUDZQRU$VVRFLDWHRI¿FHPD\GHFOLQHWRLVVXHDFKDQJHLQ
method of accounting letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
 1RWL¿FDWLRQRIDSSURSULDWH6HUYLFHRI¿FLDO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
 +RZWRFKHFNVWDWXVRIDSHQGLQJQRQDXWRPDWLF)RUP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
.14 Service is not bound by informal opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
 6LQJOHOHWWHUUXOLQJLVVXHGWRDWD[SD\HURUFRQVROLGDWHGJURXSIRUTXDOLI\LQJLGHQWLFDOFKDQJHLQ
method of accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
.16 Letter ruling ordinarily not issued for one of two or more interrelated items or submethods . . . . . . . . . . . . . . . . . . . . . .55
.17 Consent Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
 $FRS\RIWKHFKDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJLVVHQWWRDSSURSULDWH6HUYLFHRI¿FLDO. . . . . . . . . . . . . . . . . .56
.19 Consent to change a method of accounting may be relied on subject to limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
 &KDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJGRHVQRWDSSO\WRDQRWKHUWD[SD\HU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
 $VVRFLDWHRI¿FHGLVFUHWLRQWRSHUPLWUHTXHVWHGFKDQJHLQPHWKRGRIDFFRXQWLQJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

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.22 List of automatic change in method of accounting request procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
.23 Other sections of this revenue procedure that are applicable to Form 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
SECTION 10. HOW ARE CONFERENCES FOR LETTER RULINGS SCHEDULED? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60

 6FKHGXOHVDFRQIHUHQFHLIUHTXHVWHGE\WD[SD\HU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60

 3HUPLWVWD[SD\HURQHFRQIHUHQFHRIULJKW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
.03 Disallows verbatim recording of conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61

 0DNHVWHQWDWLYHUHFRPPHQGDWLRQVRQVXEVWDQWLYHLVVXHV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.05 May offer additional conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61

 5HTXLUHVZULWWHQFRQ¿UPDWLRQRILQIRUPDWLRQSUHVHQWHGDWFRQIHUHQFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
.07 May schedule a pre-submission conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
 7D[SD\HUPD\UHTXHVWDSUHVXEPLVVLRQFRQIHUHQFHLQZULWLQJRUE\WHOHSKRQH . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
(2) Pre-submission conference held in person or by telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
 &HUWDLQLQIRUPDWLRQUHTXLUHGWREHVXEPLWWHGWRWKH$VVRFLDWHRI¿FHSULRUWRWKHSUHVXEPLVVLRQFRQIHUHQFH . . . . .63
(4) Discussion of substantive issues not binding on the Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
.08 May schedule a conference to be held by telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
SECTION 11. WHAT EFFECT WILL A LETTER RULING HAVE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
.01 May be relied on subject to limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

 :LOOQRWDSSO\WRDQRWKHUWD[SD\HU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

 :LOOEHXVHGE\D¿HOGRI¿FHLQH[DPLQLQJWKHWD[SD\HU¶VUHWXUQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

 0D\EHUHYRNHGRUPRGL¿HGLIIRXQGWREHLQHUURURUWKHUHKDVEHHQDFKDQJHLQODZ . . . . . . . . . . . . . . . . . . . . . . . . . . .64

 /HWWHUUXOLQJUHYRNHGRUPRGL¿HGEDVHGRQPDWHULDOFKDQJHLQIDFWVDSSOLHGUHWURDFWLYHO\ . . . . . . . . . . . . . . . . . . . . . . .65

 1RWRWKHUZLVHJHQHUDOO\UHYRNHGRUPRGL¿HGUHWURDFWLYHO\ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65

 5HWURDFWLYHHIIHFWRIUHYRFDWLRQRUPRGL¿FDWLRQDSSOLHGWRDSDUWLFXODUWUDQVDFWLRQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65

 5HWURDFWLYHHIIHFWRIUHYRFDWLRQRUPRGL¿FDWLRQDSSOLHGWRDFRQWLQXLQJDFWLRQRUVHULHVRIDFWLRQV . . . . . . . . . . . . . . . .65

 *HQHUDOO\QRWUHWURDFWLYHO\UHYRNHGRUPRGL¿HGLIUHODWHGWRVDOHRUOHDVHVXEMHFWWRH[FLVHWD[ . . . . . . . . . . . . . . . . . . .66

 0D\EHUHWURDFWLYHO\UHYRNHGRUPRGL¿HGZKHQWUDQVDFWLRQLVHQWHUHGLQWREHIRUHWKHLVVXDQFHRI
the letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66

 7D[SD\HUPD\UHTXHVWWKDWUHWURDFWLYLW\EHOLPLWHG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66
(1) Request for relief under § 7805(b) must be made in required format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66
 7D[SD\HUPD\UHTXHVWDFRQIHUHQFHRQDSSOLFDWLRQRI†E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
SECTION 12. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS? . . . . . . . .67

 ,QLQFRPHDQGJLIWWD[PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67

 ,QHVWDWHWD[PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68

 ,QJHQHUDWLRQVNLSSLQJWUDQVIHUWD[PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68

 ,QHPSOR\PHQWDQGH[FLVHWD[PDWWHUV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68

 5HTXHVWVFRQFHUQLQJLQFRPHHVWDWHRUJLIWWD[UHWXUQV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
.06 Review of determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
.01 Has same effect as a letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

 7D[SD\HUPD\UHTXHVWWKDWUHWURDFWLYHHIIHFWRIUHYRFDWLRQRUPRGL¿FDWLRQEHOLPLWHG . . . . . . . . . . . . . . . . . . . . . . . . . . .69
(1) Request for relief under § 7805(b) must be made in required format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
 7D[SD\HUPD\UHTXHVWDFRQIHUHQFHRQDSSOLFDWLRQRI†E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
SECTION 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN
A DIRECTOR AND AN ASSOCIATE OFFICE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
.01 Requests for determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
.02 No-rule areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
.03 Requests for letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

 /HWWHUUXOLQJUHTXHVWPLVWDNHQO\VHQWWRD'LUHFWRU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER RULINGS
AND DETERMINATION LETTERS? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

 /HJLVODWLRQDXWKRUL]LQJXVHUIHHV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

Bulletin No. 2021–1

5

January 4, 2021




.02
.03

.05


.07

.08
.09
.10
.11

Requests to which a user fee applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
Requests to which a user fee does not apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
([HPSWLRQVIURPWKHXVHUIHHUHTXLUHPHQWV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
Fee schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
$SSOLFDEOHXVHUIHHIRUDUHTXHVWLQYROYLQJPXOWLSOHRI¿FHVIHHFDWHJRULHVLVVXHVWUDQVDFWLRQVRUHQWLWLHV . . . . . . . . . .72
 5HTXHVWVLQYROYLQJVHYHUDORI¿FHV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
(2) Requests involving several fee categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
(3) Requests involving several issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
(4) Requests involving several unrelated transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
(5) Requests involving several entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
 5HTXHVWVPDGHE\PDUULHGWD[SD\HUVZKR¿OHMRLQWO\ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
Applicable user fee for requests for substantially identical letter rulings or closing agreements,
or identical changes in method of accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
(2) Substantially identical letter rulings and closing agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
(3) Substantially identical plans under § 25(c)(2)(B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
(4) Identical changes in method of accounting and related § 301.9100 letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . .74
Method of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Effect of nonpayment or payment of incorrect amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Refunds of user fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
Request for reconsideration of user fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76

SECTION 16. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2020-1? . . . . . . . .77
SECTION 17. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS? . . . . . . . . . . . .78
SECTION 18. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE? . . . . . . . . . . . . . . . . . . . . . . . . . . .78
SECTION 19. PAPERWORK REDUCTION ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78
DRAFTING INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
APPENDIX A—SCHEDULE OF USER FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
APPENDIX B—SAMPLE FORMAT FOR A LETTER RULING REQUEST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
APPENDIX C—CHECKLIST FOR A LETTER RULING REQUEST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91
APPENDIX D—ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLAN RULING REQUESTS . . . . . . . . . .96
APPENDIX E—ADDITIONAL CHECKLIST FOR CHURCH PLAN RULING REQUESTS . . . . . . . . . . . . . . . . . . . . . . . .97
APPENDIX F—LIST OF SMALL BUSINESS/SELF-EMPLOYED OPERATING DIVISION (SB/SE)
OFFICES TO WHICH TO SEND REQUESTS FOR DETERMINATION LETTERS . . . . . . . . . . . . . . . . .98
APPENDIX G—CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR
REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES . . . . . . . . . . . . .99

 &KHFNOLVWVJXLGHOLQHUHYHQXHSURFHGXUHVDQGQRWLFHV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
.02 Safe harbor revenue procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
.03 Automatic change in accounting period revenue procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107
APPENDIX H—MEMORANDUM OF UNDERSTANDING ACKNOWLEDGING RISK WITH EMAIL . . . . . . . . . . . . .109
APPENDIX I—MEMORANDUMS OF UNDERSTANDING AGREEING TO USE ENCRYPTED
EMAIL ATTACHMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
.01 Agreement to use encrypted email attachments (compressed Zip format) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110
.02 Agreement to use encrypted email attachments (Adobe Acrobat Pro password encryption) . . . . . . . . . . . . . . . . . . . . .112

 $JUHHPHQWWRXVHHQFU\SWHGHPDLODWWDFKPHQWV0LFURVRIW2I¿FHSDVVZRUGHQFU\SWLRQ . . . . . . . . . . . . . . .114

January 4, 2021

6

Bulletin No. 2021–1

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

Description of terms used in
this revenue procedure

7KLVUHYHQXHSURFHGXUHH[SODLQVKRZWKH6HUYLFHSURYLGHVDGYLFHWRWD[SD\HUVRQLVVXHVXQGHU
the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (EmSOR\HH %HQH¿WV ([HPSW 2UJDQL]DWLRQV DQG (PSOR\PHQW7D[HV WKH$VVRFLDWH &KLHI &RXQVHO
)LQDQFLDO,QVWLWXWLRQVDQG3URGXFWVWKH$VVRFLDWH&KLHI&RXQVHO,QFRPH7D[DQG$FFRXQWLQJ
the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and SpeFLDO,QGXVWULHVDQGWKH$VVRFLDWH&KLHI&RXQVHO3URFHGXUHDQG$GPLQLVWUDWLRQ,WH[SODLQVWKH
IRUPVRIDGYLFHDQGWKHPDQQHULQZKLFKDGYLFHLVUHTXHVWHGE\WD[SD\HUVDQGSURYLGHGE\WKH
6HUYLFH$VDPSOHIRUPDWIRUDOHWWHUUXOLQJUHTXHVWLVSURYLGHGLQ$SSHQGL[%See section 4 of this
revenue procedure for information on certain issues outside the scope of this revenue procedure on
which advice may be requested under a different revenue procedure.
.01 For purposes of this revenue procedure—
(1) the term “Service” includes the four operating divisions of the Internal Revenue Service and
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(a) Large Business & International Division (LB&I), which generally serves corporations, S
FRUSRUDWLRQVDQGSDUWQHUVKLSVZLWKDVVHWVLQH[FHVVRIPLOOLRQ,WDOVRVHUYHV86FLWL]HQV
and residents with offshore activities and non-residents with U.S. activities.
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or Form 2106, Employee Business Expenses
(c) Wage and Investment Division (W&I), which generally serves individuals with wage and
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'LUHFWRU(PSOR\HH3ODQV([DPLQDWLRQV'LUHFWRU([HPSW2UJDQL]DWLRQV'LUHFWRU([HPSW2UJDQL]DWLRQV 5XOLQJV DQG$JUHHPHQWV 'LUHFWRU ([HPSW 2UJDQL]DWLRQV ([DPLQDWLRQV 'LUHFWRU
Government Entities, as appropriate.
WKHWHUP³¿HOGRI¿FH´UHIHUVWRWKHUHVSHFWLYHRI¿FHVRIWKH'LUHFWRUVDVDSSURSULDWH

Bulletin No. 2021–1

7

January 4, 2021

WKHWHUP³WD[SD\HU´LQFOXGHVDOOSHUVRQVVXEMHFWWRDQ\SURYLVLRQRIWKH,QWHUQDO5HYHQXH
&RGHDQGZKHQDSSURSULDWHWKHLUUHSUHVHQWDWLYHV0RUHVSHFL¿FDOO\WKHWHUPLQFOXGHVWD[H[HPSWRUJDQL]DWLRQVDVZHOODVLVVXHUVRIWD[H[HPSWREOLJDWLRQVPRUWJDJHFUHGLWFHUWL¿FDWHVDQG
WD[FUHGLWERQGV
WKHWHUPV³$SSHDOV´DQG³$SSHDOVRI¿FH´UHIHUWRWKH,QWHUQDO5HYHQXH6HUYLFH,QGHSHQGHQW
2I¿FHRI$SSHDOV
Updated annually

.027KLVUHYHQXHSURFHGXUHLVXSGDWHGDQQXDOO\DVWKH¿UVWUHYHQXHSURFHGXUHRIWKH\HDUEXWLW
PD\EHPRGL¿HGDPSOL¿HGRUFODUL¿HGGXULQJWKH\HDU

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$³OHWWHUUXOLQJ´LVDZULWWHQGHWHUPLQDWLRQLVVXHGWRDWD[SD\HUE\DQ$VVRFLDWHRI¿FHLQ
UHVSRQVHWRWKHWD[SD\HU¶VZULWWHQLQTXLU\¿OHGSULRUWRWKH¿OLQJRIUHWXUQVRUUHSRUWVWKDWDUH
UHTXLUHGE\WKHWD[ODZVDERXWLWVVWDWXVIRUWD[SXUSRVHVRUWKHWD[HIIHFWVRILWVDFWVRUWUDQVDFWLRQV$OHWWHUUXOLQJLQWHUSUHWVWKHWD[ODZVDQGDSSOLHVWKHPWRWKHWD[SD\HU¶VVSHFL¿FVHWRI
IDFWV$OHWWHUUXOLQJLVLVVXHGZKHQDSSURSULDWHLQWKHLQWHUHVWRIVRXQGWD[DGPLQLVWUDWLRQ2QH
W\SHRIOHWWHUUXOLQJLVDQ$VVRFLDWHRI¿FH¶VUHVSRQVHJUDQWLQJRUGHQ\LQJDUHTXHVWIRUDFKDQJH
LQDWD[SD\HU¶VPHWKRGRIDFFRXQWLQJRUDFFRXQWLQJSHULRG2QFHLVVXHGDOHWWHUUXOLQJPD\EH
UHYRNHGRUPRGL¿HGIRUDQXPEHURIUHDVRQVSee section 11 of this revenue procedure. A letter
UXOLQJPD\EHLVVXHGZLWKDFORVLQJDJUHHPHQWKRZHYHUDQGDFORVLQJDJUHHPHQWLV¿QDOXQOHVV
fraud, malfeasance, or misrepresentation of a material fact can be shown. See section 2.02 of this
revenue procedure.
/HWWHUUXOLQJVDUHVXEMHFWWRH[FKDQJHRILQIRUPDWLRQXQGHU86WD[WUHDWLHVRUWD[LQIRUPDWLRQ
H[FKDQJH DJUHHPHQWV LQ DFFRUGDQFH ZLWK WKH WHUPV RI VXFK WUHDWLHV DQG DJUHHPHQWV LQFOXGLQJ
WHUPVUHJDUGLQJUHOHYDQF\FRQ¿GHQWLDOLW\DQGWKHSURWHFWLRQRIWUDGHVHFUHWV

Closing agreement

.02$³FORVLQJDJUHHPHQW´LVD¿QDODJUHHPHQWEHWZHHQWKH6HUYLFHDQGDWD[SD\HURQDVSHFL¿F
LVVXHRUOLDELOLW\,WLVHQWHUHGLQWRXQGHUWKHDXWKRULW\LQ†DQGLWLV¿QDOXQOHVVIUDXGPDOfeasance, or misrepresentation of a material fact can be shown.
$WD[SD\HUPD\UHTXHVWDFORVLQJDJUHHPHQWZLWKDOHWWHUUXOLQJRULQOLHXRIDOHWWHUUXOLQJZLWK
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 permaQHQWO\DQGFRQFOXVLYHO\FORVHGRUZKHQDWD[SD\HUFDQVKRZWKDWWKHUHDUHJRRGUHDVRQVIRUDQ
DJUHHPHQWDQGWKDWPDNLQJWKHDJUHHPHQWZLOOQRWSUHMXGLFHWKHLQWHUHVWVRIWKH*RYHUQPHQW,Q
DSSURSULDWHFDVHVDWD[SD\HUPD\EHDVNHGWRHQWHULQWRDFORVLQJDJUHHPHQWDVDFRQGLWLRQIRUWKH
issuance of a letter ruling.
,ILQDVLQJOHFDVHDFORVLQJDJUHHPHQWLVUHTXHVWHGIRUHDFKSHUVRQRUHQWLW\LQDFODVVRIWD[SD\HUVVHSDUDWHDJUHHPHQWVDUHHQWHUHGLQWRRQO\LIWKHFODVVFRQVLVWVRIRUIHZHUWD[SD\HUV,I
WKHLVVXHDQGKROGLQJDUHLGHQWLFDOIRUWKHFODVVDQGWKHUHDUHPRUHWKDQWD[SD\HUVLQWKHFODVV

January 4, 2021

8

Bulletin No. 2021–1

D³PDVVFORVLQJDJUHHPHQW´ZLOOEHHQWHUHGLQWRZLWKWKHWD[SD\HUZKRLVDXWKRUL]HGE\WKHRWKHUV
to represent the class.
Determination letter

.03 A “determination letter” is a written determination issued by a Director that applies the
SULQFLSOHVDQGSUHFHGHQWVSUHYLRXVO\DQQRXQFHGE\WKH6HUYLFHWRDVSHFL¿FVHWRIIDFWV,WLVLVVXHG
RQO\ZKHQDGHWHUPLQDWLRQFDQEHPDGHEDVHGRQFOHDUO\HVWDEOLVKHGUXOHVLQDVWDWXWHDWD[WUHDW\
the regulations, a conclusion in a revenue ruling, or an opinion or court decision that represents
the position of the Service.

Information letter

.04$Q³LQIRUPDWLRQOHWWHU´LVDVWDWHPHQWLVVXHGE\DQ$VVRFLDWHRI¿FHRU'LUHFWRUWKDWFDOOV
DWWHQWLRQWRDZHOOHVWDEOLVKHGLQWHUSUHWDWLRQRUSULQFLSOHRIWD[ODZLQFOXGLQJDWD[WUHDW\ZLWKRXW
DSSO\LQJLWWRDVSHFL¿FVHWRIIDFWV$QLQIRUPDWLRQOHWWHUPD\EHLVVXHGLIWKHWD[SD\HU¶VLQTXLU\
LQGLFDWHVDQHHGIRUJHQHUDOLQIRUPDWLRQRULIWKHWD[SD\HU¶VUHTXHVWGRHVQRWPHHWWKHUHTXLUHments of this revenue procedure and the Service concludes that general information will help the
WD[SD\HU$QLQIRUPDWLRQOHWWHULVDGYLVRU\RQO\DQGKDVQRELQGLQJHIIHFWRQWKH6HUYLFH,IWKH
$VVRFLDWHRI¿FHLVVXHVDQLQIRUPDWLRQOHWWHULQUHVSRQVHWRDUHTXHVWIRUDOHWWHUUXOLQJWKDWGRHV
not meet the requirements of this revenue procedure, the information letter is not a substitute for a
OHWWHUUXOLQJ7KHWD[SD\HUVKRXOGSURYLGHDGD\WLPHWHOHSKRQHQXPEHUZLWKWKHWD[SD\HU¶VUHTXHVW
for an information letter.
,QIRUPDWLRQOHWWHUVWKDWDUHLVVXHGE\WKH$VVRFLDWHRI¿FHVWRPHPEHUVRIWKHSXEOLFDUHPDGH
DYDLODEOHWRWKHSXEOLF,QIRUPDWLRQOHWWHUVWKDWDUHLVVXHGE\WKH¿HOGRI¿FHVDUHJHQHUDOO\QRW
made available to the public.
%HFDXVHLQIRUPDWLRQOHWWHUVGRQRWFRQVWLWXWHZULWWHQGHWHUPLQDWLRQVDVGH¿QHGLQ†WKH\
DUHQRWVXEMHFWWRSXEOLFLQVSHFWLRQXQGHU†7KH6HUYLFHPDNHVWKHLQIRUPDWLRQOHWWHUVDYDLOable to the public under the Freedom of Information Act (the “FOIA”). Before any information
OHWWHULVPDGHDYDLODEOHWRWKHSXEOLFDQ$VVRFLDWHRI¿FHZLOOUHGDFWDQ\LQIRUPDWLRQH[HPSWIURP
disclosure under the FOIA. See, e.g.86&†EH[HPSWLRQIRULQIRUPDWLRQWKHGLVFORVXUHRIZKLFKZRXOGFRQVWLWXWHDFOHDUO\XQZDUUDQWHGLQYDVLRQRISHUVRQDOSULYDF\86&
†ELQFRQMXQFWLRQZLWK†H[HPSWLRQIRUUHWXUQVDQGUHWXUQLQIRUPDWLRQDVGH¿QHG
in § 6103(b)).
7KHIROORZLQJGRFXPHQWVDOVRZLOOQRWEHDYDLODEOHIRUSXEOLFLQVSHFWLRQDVSDUWRIWKLVSURFHVV
(1) transmittal letters in which the Service furnishes publications or other publicly available
PDWHULDOWRWD[SD\HUVZLWKRXWDQ\VLJQL¿FDQWOHJDOGLVFXVVLRQ
UHVSRQVHVWRWD[SD\HURUWKLUGSDUW\FRQWDFWVWKDWDUHLQTXLULHVZLWKUHVSHFWWRDSHQGLQJ
request for a letter ruling, technical advice memorandum, or Chief Counsel Advice (which are
VXEMHFWWRSXEOLFLQVSHFWLRQXQGHU†DIWHUWKHLULVVXDQFHDQG
UHVSRQVHVWRWD[SD\HURUWKLUGSDUW\FRPPXQLFDWLRQVZLWKUHVSHFWWRDQ\LQYHVWLJDWLRQDXGLW
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
OHWWHUVLQUHVSRQVHWRRUDOUHTXHVWVIURPWD[SD\HUV6HUYLFHHPSOR\HHVRUGLQDULO\ZLOOGLVFXVVZLWK

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9

January 4, 2021

WD[SD\HUVRUWKHLUUHSUHVHQWDWLYHVLQTXLULHVDERXWZKHWKHUWKH6HUYLFHZLOOUXOHRQSDUWLFXODULVVXHV
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
SHUPLWV6HUYLFHHPSOR\HHVPD\DOVRGLVFXVVVXEVWDQWLYHLVVXHVZLWKWD[SD\HUVRUWKHLUUHSUHVHQWDWLYHV6XFKDGLVFXVVLRQZLOOQRWELQGWKH6HUYLFHRUWKH2I¿FHRI&KLHI&RXQVHODQGLWFDQQRW
be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).
6HUYLFHHPSOR\HHVZKRDUHQRWGLUHFWO\LQYROYHGLQWKHH[DPLQDWLRQDSSHDORUOLWLJDWLRQRI
SDUWLFXODU VXEVWDQWLYH WD[ LVVXHV ZLOO QRW GLVFXVV WKRVH LVVXHV ZLWK WD[SD\HUV RU WKHLU UHSUHVHQtatives unless the discussion is coordinated with Service employees who are directly involved.
7KHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHRUGLQDULO\ZLOOEHDVNHGZKHWKHUDQRUDOUHTXHVWIRU
DGYLFHRULQIRUPDWLRQUHODWHVWRDPDWWHUSHQGLQJEHIRUHDQRWKHURI¿FHRIWKH6HUYLFHRUEHIRUHD
Federal court.
,IDWD[LVVXHLVQRWXQGHUH[DPLQDWLRQLQ$SSHDOVRULQOLWLJDWLRQWKHWD[LVVXHPD\EHGLVFXVVHGHYHQWKRXJKWKHLVVXHLVDIIHFWHGE\DQRQWD[LVVXHSHQGLQJLQOLWLJDWLRQ
$WD[SD\HUPD\VHHNRUDOWHFKQLFDOJXLGDQFHIURPDWD[SD\HUVHUYLFHUHSUHVHQWDWLYHLQD¿HOG
RI¿FHRU6HUYLFH&HQWHUZKHQSUHSDULQJDUHWXUQRUUHSRUW
7KH6HUYLFHGRHVQRWUHVSRQGWROHWWHUVVHHNLQJWRFRQ¿UPWKHVXEVWDQFHRIRUDOGLVFXVVLRQVDQG
WKHDEVHQFHRIDUHVSRQVHWRVXFKDOHWWHULVQRWDFRQ¿UPDWLRQ
(3) Oral guidance is advisory only, and the Service is not bound by it. Oral guidance is adviVRU\RQO\DQGWKH6HUYLFHLVQRWERXQGE\LWIRUH[DPSOHZKHQH[DPLQLQJWKHWD[SD\HU¶VUHWXUQ
SECTION 3. ON
WHAT ISSUES MAY
TAXPAYERS REQUEST
WRITTEN ADVICE
UNDER THIS REVENUE
PROCEDURE?

7D[SD\HUVPD\UHTXHVWOHWWHUUXOLQJVLQIRUPDWLRQOHWWHUVDQGFORVLQJDJUHHPHQWVXQGHUWKLVUHYHQXHSURFHGXUHRQLVVXHVZLWKLQWKHMXULVGLFWLRQRIWKH$VVRFLDWHRI¿FHV7D[SD\HUVXQFHUWDLQDV
WRZKHWKHUDQ$VVRFLDWHRI¿FHKDVMXULVGLFWLRQZLWKUHJDUGWRDVSHFL¿FIDFWXDOVLWXDWLRQPD\FDOO
WKHWHOHSKRQHQXPEHUIRUWKH$VVRFLDWHRI¿FHOLVWHGLQVHFWLRQRIWKLVUHYHQXHSURFHGXUH

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

.01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate) include those that
LQYROYHFRQVROLGDWHGUHWXUQVFRUSRUDWHDFTXLVLWLRQVUHRUJDQL]DWLRQVOLTXLGDWLRQVUHGHPSWLRQV
VSLQRIIVWUDQVIHUVWRFRQWUROOHGFRUSRUDWLRQVGLVWULEXWLRQVWRVKDUHKROGHUVFRUSRUDWHEDQNUXSWFLHVWKHHIIHFWRIFHUWDLQRZQHUVKLSFKDQJHVRQQHWRSHUDWLQJORVVFDUU\RYHUVDQGRWKHUWD[DWWULEXWHVGHEWYVHTXLW\GHWHUPLQDWLRQVDOORFDWLRQRILQFRPHDQGGHGXFWLRQVDPRQJWD[SD\HUV
DFTXLVLWLRQVPDGHWRHYDGHRUDYRLGLQFRPHWD[DQGFHUWDLQHDUQLQJVDQGSUR¿WVTXHVWLRQV

([FHSWDVSURYLGHGLQVHFWLRQRIWKLVUHYHQXHSURFHGXUHWD[SD\HUVDOVRPD\UHTXHVWGHtermination letters from the Director in the appropriate operating division. See sections 7 and 12
RIWKLVUHYHQXHSURFHGXUH)RUGHWHUPLQDWLRQOHWWHUVIURP7(*(see Rev. Proc. 2021-4 and Rev.
Proc. 2021-5, this Bulletin.

For information on letter rulings under section 355 involving businesses in certain development
(R&D) and other activities that have not collected income see IRS Statements issued on May 6,
2019 and September 25, 2018. For information on obtaining transactional rulings under section
VHHWKH,566WDWHPHQWLVVXHGRQ0DUFKWKDWLQGH¿QLWHO\H[WHQGVWKHSLORWSURJUDPLQ
5HY3URF,5%DPSOL¿HGDQGPRGL¿HGE\5HY3URF

January 4, 2021

10

Bulletin No. 2021–1

I.R.B. 667.) See the IRS Statement issued on October 13, 2017 for information regarding letter
UXOLQJVLQYROYLQJUHWHQWLRQRIVWRFNGURSVSLQOLTXLGDWHWUDQVDFWLRQVDQGWUDQVIHUVRIDSRUWLRQRI
DVXEVLGLDU\¶VDVVHWVWRLWVFRUSRUDWHVKDUHKROGHULQWUDQVDFWLRQVQRWTXDOLI\LQJXQGHUVHFWLRQ
RUEXWDUHLQWHQGHGWRTXDOLI\DVWD[IUHH7KHVH,566WDWHPHQWVDUHDYDLODEOHDWKWWSVZZZ
LUVJRYQHZVURRPVWDWHPHQWVIURPRI¿FHRIWKHFKLHIFRXQVHO
Issues under the
jurisdiction of the
Associate Chief Counsel
(PSOR\HH%HQH¿WV
Exempt Organizations, and
Employment Taxes)

.02,VVXHVXQGHUWKHMXULVGLFWLRQRIWKH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW
2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HVLQFOXGHWKRVHWKDWLQYROYHWKHDSSOLFDWLRQRIHPSOR\PHQW
WD[HVDQGWD[HVRQVHOIHPSOR\PHQWLQFRPHH[HPSWLRQUHTXLUHPHQWVIRUWD[H[HPSWRUJDQL]DWLRQVWD[WUHDWPHQWLQFOXGLQJDSSOLFDWLRQRIWKHXQUHODWHGEXVLQHVVLQFRPHWD[RIWD[H[HPSW
RUJDQL]DWLRQVLQFOXGLQJIHGHUDOVWDWHORFDODQG,QGLDQWULEDOJRYHUQPHQWVSROLWLFDORUJDQL]DWLRQVGHVFULEHGLQ†TXDOL¿HGWXLWLRQSURJUDPVGHVFULEHGLQ†TXDOL¿HG$%/(SURJUDPV
GHVFULEHGLQ † $ WUXVWV GHVFULEHGLQ † D FHUWDLQH[FLVHWD[HVGLVFORVXUHREOLJDWLRQV
DQGLQIRUPDWLRQUHWXUQUHTXLUHPHQWVRIWD[H[HPSWRUJDQL]DWLRQVHPSOR\HHEHQH¿WSURJUDPVLQFOXGLQJH[HFXWLYHFRPSHQVDWLRQDUUDQJHPHQWVTXDOL¿HGUHWLUHPHQWSODQVGHIHUUHGFRPSHQVDWLRQ
SODQVDQGKHDOWKDQGZHOIDUHEHQH¿WSURJUDPVDQG,5$VLVVXHVLQWHJUDOO\UHODWHGWRHPSOR\HH
EHQH¿WSURJUDPVDQG,5$VVXFKDVIRUH[DPSOHWKHVDOHRIVWRFNWRHPSOR\HHVWRFNRZQHUVKLS
SODQVRUHOLJLEOHZRUNHURZQHGFRRSHUDWLYHVXQGHU†DQGFKDQJHVLQPHWKRGRIDFFRXQWLQJ
DVVRFLDWHGZLWKHPSOR\HHEHQH¿WSURJUDPV
1RWHWKDWFHUWDLQLVVXHVLQYROYLQJH[HPSWRUJDQL]DWLRQVHPSOR\HHSODQVDQGJRYHUQPHQWHQWLWLHVIDOOXQGHUWKHMXULVGLFWLRQRIWKH&RPPLVVLRQHU7(*(RIWKH,QWHUQDO5HYHQXH6HUYLFHSee
Rev. Proc. 2021-4 and Rev. Proc. 2021-5, this Bulletin.

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

.03 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
3URGXFWVLQFOXGHWKRVHWKDWLQYROYHLQFRPHWD[HVDQGFKDQJHVLQPHWKRGRIDFFRXQWLQJRIEDQNV
savings and loan associations, real estate investment trusts (REITs), regulated investment companies (RICs), real estate mortgage investment conduits (REMICs), insurance companies and prodXFWVWD[H[HPSWREOLJDWLRQVPRUWJDJHFUHGLWFHUWL¿FDWHVWD[FUHGLWERQGVLQFOXGLQJVSHFL¿HGWD[
FUHGLWERQGVEXLOG$PHULFDERQGVDQG¿QDQFLDOSURGXFWV
)RUWKHSURFHGXUHVWRREWDLQOHWWHUUXOLQJVLQYROYLQJWD[H[HPSWVWDWHDQGORFDOREOLJDWLRQVsee
Rev. Proc. 96-16, 1996-1 C.B. 630.

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

.04,VVXHVXQGHUWKHMXULVGLFWLRQRIWKH$VVRFLDWH&KLHI&RXQVHO,QFRPH7D[DQG$FFRXQWLQJ
include those that involve recognition and timing of income and deductions of individuals and
FRUSRUDWLRQV VDOHV DQG H[FKDQJHV FDSLWDO JDLQV DQG ORVVHV LQVWDOOPHQW VDOHV HTXLSPHQW OHDVLQJ ORQJWHUP FRQWUDFWV LQYHQWRULHV DPRUWL]DWLRQ GHSUHFLDWLRQ WKH DOWHUQDWLYH PLQLPXP WD[
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
XQGHUWKHMXULVGLFWLRQRIWKH&RPPLVVLRQHU7(*(See section 4.02 of this revenue procedure).

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

.05,VVXHVXQGHUWKHMXULVGLFWLRQRIWKH$VVRFLDWH&KLHI&RXQVHO,QWHUQDWLRQDOLQFOXGHWKHWD[
WUHDWPHQWRIQRQUHVLGHQWDOLHQVDQGIRUHLJQFRUSRUDWLRQVZLWKKROGLQJRIWD[RQQRQUHVLGHQWDOLHQV
DQG IRUHLJQ FRUSRUDWLRQV IRUHLJQ WD[ FUHGLW GHWHUPLQDWLRQ RI VRXUFHV RI LQFRPH LQFRPH IURP
sources outside the United States, subpart F questions, domestic international sales corporations
',6&V IRUHLJQ VDOHV FRUSRUDWLRQV )6&V H[FOXVLRQV XQGHU †  IRU H[WUDWHUULWRULDO LQFRPH
(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.

Bulletin No. 2021–1

11

January 4, 2021

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)

.06 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special
,QGXVWULHVLQFOXGHWKRVHWKDWLQYROYHLQFRPHWD[HVRI6FRUSRUDWLRQVH[FHSWDFFRXQWLQJSHULRGV
DQGPHWKRGVDQGFHUWDLQQRQFRUSRUDWHWD[SD\HUVLQFOXGLQJSDUWQHUVKLSVFRPPRQWUXVWIXQGV
DQGWUXVWVHQWLW\FODVVL¿FDWLRQHVWDWHH[FOXGLQJ†JLIWJHQHUDWLRQVNLSSLQJWUDQVIHUDQG
FHUWDLQH[FLVHWD[HVGHSOHWLRQDQGRWKHUHQJLQHHULQJLVVXHVFRRSHUDWLYHKRXVLQJFRUSRUDWLRQV
IDUPHUV¶FRRSHUDWLYHVXQGHU†WKHORZLQFRPHKRXVLQJFUHGLWXQGHU†WKH1HZ0DUNHWV
7D[&UHGLWXQGHU†'WKHUHKDELOLWDWLRQFUHGLWXQGHU†GLVDEOHGDFFHVVFUHGLWTXDOL¿HGHOHFWULFYHKLFOHFUHGLWVUHVHDUFKDQGH[SHULPHQWDOH[SHQGLWXUHVVKLSRZQHUV¶SURWHFWLRQDQGLQGHPQLty associations under § 526, and certain homeowners associations under § 528.

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

.07 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration)
LQFOXGHWKRVHWKDWLQYROYH)HGHUDOWD[SURFHGXUHDQGDGPLQLVWUDWLRQGLVFORVXUHDQGSULYDF\ODZ
UHSRUWLQJDQGSD\LQJWD[HVLQFOXGLQJSD\PHQWRIWD[HVXQGHU†DVVHVVLQJDQGFROOHFWLQJ
WD[HVLQFOXGLQJLQWHUHVWDQGSHQDOWLHVDEDWLQJFUHGLWLQJRUUHIXQGLQJRYHUDVVHVVPHQWVRURYHUSD\PHQWVRIWD[DQG¿OLQJLQIRUPDWLRQUHWXUQV

SECTION 4. ON WHAT
ISSUES MUST WRITTEN
ADVICE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?
Issues involving alcohol,
WREDFFRDQG¿UHDUPVWD[HV

.01 The procedures for obtaining letter rulings, closing agreements, determination letters, inIRUPDWLRQOHWWHUVDQGRUDODGYLFHWKDWDSSO\WR)HGHUDODOFRKROWREDFFRDQG¿UHDUPVWD[HVXQGHU
VXEWLWOH(RIWKH&RGHDUHXQGHUWKHMXULVGLFWLRQRIWKH$OFRKRODQG7REDFFR7D[DQG7UDGH%XUHDX
of the Department of the Treasury.

Certain issues involving
TXDOL¿HGUHWLUHPHQWSODQV
individual retirement
accounts (IRAs), and
exempt organizations

.02 The procedures for obtaining certain letter rulings, closing agreements, determination letWHUVLQIRUPDWLRQOHWWHUVDQGRUDODGYLFHRQTXDOL¿HGUHWLUHPHQWSODQVDQG,5$VWKDWDUHXQGHUWKH
MXULVGLFWLRQRIWKH&RPPLVVLRQHU7(*(DUHSURYLGHGLQ5HY3URFWKLV%XOOHWLQ5HY
Proc. 2021-4, this Bulletin, also includes the procedures for issuing determination letters on the
TXDOL¿HGVWDWXVRISHQVLRQSUR¿WVKDULQJVWRFNERQXVDQQXLW\DQGHPSOR\HHVWRFNRZQHUVKLS
SODQVXQGHU††DDQGHDQGWKHVWDWXVIRUH[HPSWLRQRIDQ\UHODWHGWUXVWV
or custodial accounts under § 501(a). See also Rev. Proc. 2021-5, this Bulletin, for the procedures
IRULVVXLQJGHWHUPLQDWLRQOHWWHUVRQWKHWD[H[HPSWVWDWXVRIRUJDQL]DWLRQVXQGHU†DQG†
WKHIRXQGDWLRQVWDWXVRIRUJDQL]DWLRQVGHVFULEHGLQ†FDQGWKHIRXQGDWLRQVWDWXVRIQRQH[HPSWFKDULWDEOHWUXVWVGHVFULEHGLQ†D
For the user fee requirements applicable to requests under the jurisdiction of the Commissioner,
7(*(see Section 30 of Rev. Proc. 2021-4, and Section 14 of Rev. Proc. 2021-5, this Bulletin.

January 4, 2021

12

Bulletin No. 2021–1

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

.01 ,Q LQFRPH DQG JLIW WD[ PDWWHUV DQ$VVRFLDWH RI¿FH JHQHUDOO\ LVVXHV D OHWWHU UXOLQJ RQ D
proposed transaction or on a completed transaction if the letter ruling request is submitted before
WKHUHWXUQLV¿OHGIRUWKH\HDULQZKLFKWKHWUDQVDFWLRQLVFRPSOHWHG$Q$VVRFLDWHRI¿FHZLOOQRW
ordinarily issue a letter ruling on a completed transaction if the letter ruling request is submitted
DIWHUWKHUHWXUQLV¿OHGIRUWKH\HDULQZKLFKWKHWUDQVDFWLRQLVFRPSOHWHG “Not ordinarily” means
that unique and compelling reasons must be demonstrated to justify the issuance of a letter ruling
VXEPLWWHGDIWHUWKHUHWXUQLV¿OHGIRUWKH\HDULQZKLFKWKHWUDQVDFWLRQLVFRPSOHWHG7KHWD[SD\HU
PXVWFRQWDFWWKH¿HOGRI¿FHKDYLQJDXGLWMXULVGLFWLRQRYHUWKHLUUHWXUQDQGREWDLQWKH¿HOG¶VFRQsent to the issuance of such a letter ruling. See section 7.05(2) of this revenue procedure.

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

.02,QOLHXRIUHTXHVWLQJDOHWWHUUXOLQJXQGHUWKLVUHYHQXHSURFHGXUHDWD[SD\HUPD\REWDLQ
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.

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

.03$Q$VVRFLDWHRI¿FHZLOOFRQVLGHUDUHTXHVWIRUDQH[WHQVLRQRIWLPHIRUPDNLQJDQHOHFWLRQ
or other application for relief under § 301.9100-3 of the Treasury Regulations, even if submitted
DIWHUWKHUHWXUQFRYHULQJWKHLVVXHSUHVHQWHGLQWKH†UHTXHVWKDVEHHQ¿OHGDQH[DPination of the return has begun, or the issues in the return are being considered by Appeals or a
)HGHUDOFRXUW([FHSWIRUFHUWDLQUHTXHVWVSHUWDLQLQJWRDSSOLFDWLRQVIRUUHFRJQLWLRQRIWD[H[HPSWLRQXQGHUWKHMXULVGLFWLRQRIWKH&RPPLVVLRQHU7(*(D†UHTXHVWLVDOHWWHUUXOLQJUHquest. Therefore, the § 301.9100 request should be submitted pursuant to this revenue procedure.
+RZHYHUD†UHTXHVWLQYROYLQJUHFKDUDFWHUL]DWLRQRIDQ,5$see § 1.408A-5, Q&A-6)
should be submitted pursuant to Rev. Proc. 2021-4. An election made pursuant to § 301.9100-2 for
DQDXWRPDWLFH[WHQVLRQRIWLPHLVQRWDOHWWHUUXOLQJUHTXHVWDQGGRHVQRWUHTXLUHSD\PHQWRIDQ\
user fee. See § 301.9100-2(d) and section 15.03(1) of this revenue procedure.
(1) Format of request. A § 301.9100 request (other than an election made pursuant to
†  DQG FHUWDLQ UHTXHVWV SHUWDLQLQJ WR DSSOLFDWLRQV IRU UHFRJQLWLRQ RI WD[ H[HPSWLRQ
XQGHUWKHMXULVGLFWLRQRIWKH&RPPLVVLRQHU7(*(PXVWEHLQWKHJHQHUDOIRUPRIDQGPHHW
the general requirements for, a letter ruling request. These requirements are given in section 7 of
WKLVUHYHQXHSURFHGXUH$†UHTXHVWPXVWLQFOXGHDQDI¿GDYLWDQGGHFODUDWLRQIURPWKH
WD[SD\HUDQGRWKHUSDUWLHVKDYLQJNQRZOHGJHRULQIRUPDWLRQDERXWWKHHYHQWVWKDWOHGWRWKHIDLOXUH
WRPDNHDYDOLGUHJXODWRU\HOHFWLRQDQGWRWKHGLVFRYHU\RIWKHIDLOXUHSee § 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 limitation7KH¿OLQJRIDUHTXHVWIRUUHOLHIXQGHU†GRHVQRWVXVSHQGWKH
running of any applicable period of limitation. See†G7KH$VVRFLDWHRI¿FHRUGLnarily will not issue a § 301.9100 ruling if the period of limitation on assessment under § 6501(a)
IRUWKHWD[DEOH\HDULQZKLFKDQHOHFWLRQVKRXOGKDYHEHHQPDGHRUIRUDQ\WD[DEOH\HDUVWKDW
ZRXOGKDYHEHHQDIIHFWHGE\WKHHOHFWLRQKDGLWEHHQWLPHO\PDGHZLOOH[SLUHEHIRUHUHFHLSWRID
§ 301.9100 letter ruling. See†FLL,IKRZHYHUWKHWD[SD\HUFRQVHQWVWRH[WHQG
WKHSHULRGRIOLPLWDWLRQRQDVVHVVPHQWXQGHU†FIRUWKHWD[DEOH\HDULQZKLFKWKHHOHFWLRQ
VKRXOGKDYHEHHQPDGHDQGIRUDQ\WD[DEOH\HDUVWKDWZRXOGKDYHEHHQDIIHFWHGE\WKHHOHFWLRQ

Bulletin No. 2021–1

13

January 4, 2021

KDGLWEHHQWLPHO\PDGHWKH$VVRFLDWHRI¿FHPD\LVVXHWKHOHWWHUUXOLQJSee § 301.9100-3(d)(2).
1RWHWKDWWKH¿OLQJRIDFODLPIRUUHIXQGXQGHU†GRHVQRWH[WHQGWKHSHULRGRIOLPLWDWLRQ
RQDVVHVVPHQW,I†UHOLHILVJUDQWHGWKH$VVRFLDWHRI¿FHPD\UHTXLUHWKHWD[SD\HUWR
FRQVHQWWRDQH[WHQVLRQRIWKHSHULRGRIOLPLWDWLRQRQDVVHVVPHQWSee § 301.9100-3(d)(2).
7D[SD\HUPXVWQRWLI\WKH$VVRFLDWHRI¿FHLIH[DPLQDWLRQRILWVUHWXUQEHJLQVZKLOHWKH
request is pending7KHWD[SD\HUPXVWQRWLI\WKH$VVRFLDWHRI¿FHLIWKH6HUYLFHEHJLQVDQH[DPLQDWLRQRIWKHWD[SD\HU¶VUHWXUQIRUWKHWD[DEOH\HDULQZKLFKDQHOHFWLRQVKRXOGKDYHEHHQPDGH
RUIRUDQ\WD[DEOH\HDUVWKDWZRXOGKDYHEHHQDIIHFWHGE\WKHHOHFWLRQKDGLWEHHQWLPHO\PDGH
ZKLOHD†UHTXHVWLVSHQGLQJ7KLVQRWL¿FDWLRQPXVWLQFOXGHWKHQDPHDQGWHOHSKRQH
QXPEHURIWKHH[DPLQLQJDJHQWSee § 301.9100-3(e)(4)(i) and section 7.05(1)(b) of this revenue
procedure.
 $VVRFLDWH RI¿FH ZLOO QRWLI\ H[DPLQDWLRQ DJHQW $SSHDOV RI¿FHU RU DWWRUQH\ RI D
†UHTXHVWLIWKHWD[SD\HU¶VUHWXUQLVEHLQJH[DPLQHGE\D¿HOGRI¿FHRULVEHLQJ
FRQVLGHUHGE\DQ$SSHDOVRI¿FHRUD)HGHUDOFRXUW,IWKHWD[SD\HU¶VUHWXUQIRUWKHWD[DEOH\HDU
LQZKLFKDQHOHFWLRQVKRXOGKDYHEHHQPDGHRUIRUDQ\WD[DEOH\HDUVWKDWZRXOGKDYHEHHQDIIHFWHGE\WKHHOHFWLRQKDGLWEHHQWLPHO\PDGHLVEHLQJH[DPLQHGE\D¿HOGRI¿FHRUFRQVLGHUHGE\
DQ$SSHDOVRI¿FHRUD)HGHUDOFRXUWWKH$VVRFLDWHRI¿FHZLOOQRWLI\WKHDSSURSULDWHH[DPLQDWLRQ
DJHQW$SSHDOVRI¿FHURUDWWRUQH\WKDWD†UHTXHVWKDVEHHQVXEPLWWHGWRWKH$VVRFLDWH
RI¿FH7KHH[DPLQDWLRQDJHQW$SSHDOVRI¿FHURUDWWRUQH\LVQRWDXWKRUL]HGWRGHQ\FRQVLGHUDWLRQ
RID†UHTXHVW7KHOHWWHUUXOLQJZLOOEHPDLOHGWRWKHWD[SD\HUDQGDFRS\ZLOOEHVHQW
WRWKH$SSHDOVRI¿FHUDWWRUQH\RUDSSURSULDWH6HUYLFHRI¿FLDOLQWKHRSHUDWLQJGLYLVLRQWKDWKDV
H[DPLQDWLRQMXULVGLFWLRQRYHUWKHWD[SD\HU¶VWD[UHWXUQ
(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
DVSDUWRIWKHHQWLW\¶VUHTXHVWIRUDOHWWHUUXOLQJRUDQH[SODQDWLRQUHJDUGLQJZK\WKH\GRQRWTXDOLI\WRGRVR³$OOUHTXLUHG86WD[DQGLQIRUPDWLRQUHWXUQVRIWKHHQWLW\RULIWKHHQWLW\ZDVQRW
UHTXLUHGWR¿OHDQ\VXFKUHWXUQVXQGHUWKHGHVLUHGFODVVL¿FDWLRQWKHQDOOUHTXLUHG86WD[DQG
LQIRUPDWLRQUHWXUQVRIHDFKDIIHFWHGSHUVRQDVGH¿QHGLQ6HFWLRQRI5HY3URFZHUH
¿OHGWLPHO\RUZLWKLQPRQWKVRIWKHGXHGDWHRIWKHUHVSHFWLYHUHWXUQH[FOXGLQJH[WHQVLRQVDVLI
WKHHQWLW\FODVVL¿FDWLRQHOHFWLRQKDGEHHQLQHIIHFWRQWKHUHTXHVWHGGDWH1R86WD[RULQIRUPDWLRQUHWXUQVZHUH¿OHGLQFRQVLVWHQWO\ZLWKWKRVHGHVFULEHGLQWKHSULRUVHQWHQFH´
 5HOLHI IRU ODWH LQLWLDO FODVVL¿FDWLRQ HOHFWLRQ 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
FODVVL¿FDWLRQHOHFWLRQUHOLHIXQGHU5HY3URF5HTXHVWVIRUVXFKUHOLHIDUHQRWVXEMHFWWR
user fees. See section 3.01 of Rev. Proc. 2009-41 and section 15.03(2) of this revenue procedure.
Determinations under
§ 999(d)

January 4, 2021

.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
FHUWDLQEHQH¿WVRIWKHIRUHLJQWD[FUHGLWDQGWKHGHIHUUDORIHDUQLQJVRIIRUHLJQVXEVLGLDULHVDQG
domestic international sales corporations (DISCs) to that person. The same principles shall apply
ZLWKUHVSHFWWRH[FOXVLRQVXQGHU†IRUH[WHUULWRULDOLQFRPH(7,5HTXHVWVIRUGHWHUPLQDWLRQV
XQGHU5HY3URFDUHOHWWHUUXOLQJUHTXHVWVDQGVKRXOGEHVXEPLWWHGWRWKH$VVRFLDWHRI¿FH
pursuant to this revenue procedure.

14

Bulletin No. 2021–1

In matters involving § 367

.05 Unless the issue is covered by section 6 of this revenue procedure, the Associate Chief
&RXQVHO,QWHUQDWLRQDOPD\LVVXHDOHWWHUUXOLQJXQGHU†HYHQLIWKHWD[SD\HUGRHVQRWUHTXHVW
DOHWWHUUXOLQJDVWRWKHFKDUDFWHUL]DWLRQRIWKHWUDQVDFWLRQXQGHUWKHUHRUJDQL]DWLRQSURYLVLRQVRI
WKH&RGH7KH$VVRFLDWHRI¿FHZLOOGHWHUPLQHWKH†FRQVHTXHQFHVRIDWUDQVDFWLRQEXWPD\
LQGLFDWHLQWKHOHWWHUUXOLQJWKDWLWH[SUHVVHVQRRSLQLRQDVWRWKHFKDUDFWHUL]DWLRQRIWKHWUDQVDFWLRQ
XQGHUWKHUHRUJDQL]DWLRQ7KH$VVRFLDWHRI¿FHPD\GHFOLQHWRLVVXHD†UXOLQJLQVLWXDWLRQVLQ
ZKLFKWKHWD[SD\HULQDSSURSULDWHO\FKDUDFWHUL]HVWKHWUDQVDFWLRQXQGHUWKHUHRUJDQL]DWLRQSURYLsions.

In estate tax matters

.06 In general, the Associate Chief Counsel (Passthroughs and Special Industries) issues letter
UXOLQJVRQWUDQVDFWLRQVDIIHFWLQJWKHHVWDWHWD[RQWKHSURVSHFWLYHHVWDWHRIDOLYLQJSHUVRQ7KH
$VVRFLDWHRI¿FHZLOOQRWLVVXHOHWWHUUXOLQJVIRUSURVSHFWLYHHVWDWHVRQFRPSXWDWLRQVRIWD[DFWXDULDOIDFWRUVRUIDFWXDOPDWWHUV:LWKUHVSHFWWRWKHWUDQVDFWLRQVDIIHFWLQJWKHHVWDWHWD[RIWKH
GHFHGHQW¶VHVWDWHJHQHUDOO\WKH$VVRFLDWHRI¿FHLVVXHVOHWWHUUXOLQJVEHIRUHWKHGHFHGHQW¶VHVWDWH
WD[UHWXUQLV¿OHG
,IWKHWD[SD\HULVUHTXHVWLQJDOHWWHUUXOLQJUHJDUGLQJDGHFHGHQW¶VHVWDWHWD[DQGWKHHVWDWHWD[
UHWXUQLVGXHWREH¿OHGEHIRUHWKHOHWWHUUXOLQJLVH[SHFWHGWREHLVVXHGWKHWD[SD\HUVKRXOGREWDLQ
DQH[WHQVLRQRIWLPHIRU¿OLQJWKHUHWXUQDQGVKRXOGQRWLI\WKH$VVRFLDWHRI¿FHEUDQFKFRQVLGHULQJ
WKHOHWWHUUXOLQJUHTXHVWWKDWDQH[WHQVLRQKDVEHHQREWDLQHG
,IWKHUHWXUQLV¿OHGEHIRUHWKHOHWWHUUXOLQJLVUHFHLYHGIURPWKH$VVRFLDWHRI¿FHWKHWD[SD\HU
must disclose on the return that a letter ruling has been requested, attach a copy of the pending
OHWWHUUXOLQJUHTXHVWWRWKHUHWXUQDQGQRWLI\WKH$VVRFLDWHRI¿FHWKDWWKHUHWXUQKDVEHHQ¿OHGSee
VHFWLRQRIWKLVUHYHQXHSURFHGXUH7KH$VVRFLDWHRI¿FHZLOOPDNHHYHU\HIIRUWWRLVVXHWKH
OHWWHUUXOLQJZLWKLQPRQWKVRIWKHGDWHWKHUHWXUQZDV¿OHG
,IWKHWD[SD\HUUHTXHVWVDOHWWHUUXOLQJDIWHUWKHUHWXUQLV¿OHGEXWEHIRUHWKHUHWXUQLVH[DPLQHG
WKHWD[SD\HUPXVWQRWLI\WKH¿HOGRI¿FHKDYLQJMXULVGLFWLRQRYHUWKHUHWXUQWKDWDOHWWHUUXOLQJKDV
EHHQUHTXHVWHGDWWDFKDFRS\RIWKHSHQGLQJOHWWHUUXOLQJUHTXHVWDQGQRWLI\WKH$VVRFLDWHRI¿FH
WKDWDUHWXUQKDVEHHQ¿OHGSeeVHFWLRQRIWKLVUHYHQXHSURFHGXUH7KH$VVRFLDWHRI¿FH
ZLOOPDNHHYHU\HIIRUWWRLVVXHWKHOHWWHUUXOLQJZLWKLQPRQWKVRIWKHGDWHWKHUHWXUQKDVEHHQ
¿OHG
,IWKHOHWWHUUXOLQJFDQQRWEHLVVXHGZLWKLQWKDWPRQWKSHULRGWKH$VVRFLDWHRI¿FHZLOOQRWLI\
WKH¿HOGRI¿FHKDYLQJMXULVGLFWLRQRYHUWKHUHWXUQZKLFKPD\E\PHPRUDQGXPWRWKH$VVRFLDWH
RI¿FHJUDQWDQDGGLWLRQDOSHULRGIRUWKHLVVXDQFHRIWKHOHWWHUUXOLQJ

In matters involving
additional estate tax under
§ 2032A(c)

.07,QPDWWHUVLQYROYLQJDGGLWLRQDOHVWDWHWD[XQGHU†$FWKH$VVRFLDWH&KLHI&RXQVHO
(Passthroughs and Special Industries) issues letter rulings on proposed transactions and on comSOHWHGWUDQVDFWLRQVWKDWRFFXUUHGEHIRUHWKHUHWXUQLV¿OHG

In matters involving
TXDOL¿HGGRPHVWLFWUXVWV
under § 2056A

.08,QPDWWHUVLQYROYLQJTXDOL¿HGGRPHVWLFWUXVWVXQGHU†$WKH$VVRFLDWH&KLHI&RXQVHO
(Passthroughs and Special Industries) issues letter rulings on proposed transactions and on comSOHWHGWUDQVDFWLRQVWKDWRFFXUUHGEHIRUHWKHUHWXUQLV¿OHG

In generation-skipping
transfer tax matters

.09 In general, the Associate Chief Counsel (Passthroughs and Special Industries) issues letter
UXOLQJVRQSURSRVHGWUDQVDFWLRQVWKDWDIIHFWWKHJHQHUDWLRQVNLSSLQJWUDQVIHUWD[DQGRQFRPSOHWHG
WUDQVDFWLRQVWKDWRFFXUUHGEHIRUHWKHUHWXUQLV¿OHG,QWKHFDVHRIDJHQHUDWLRQVNLSSLQJWUXVWRU
trust equivalent, letter rulings are issued either before or after the trust or trust equivalent has been
established.

Bulletin No. 2021–1

15

January 4, 2021

In employment and excise
tax matters

.10,QHPSOR\PHQWDQGH[FLVHWD[PDWWHUVWKH$VVRFLDWHRI¿FHVLVVXHOHWWHUUXOLQJVRQSURSRVHG
transactions and on completed transactions, if the letter ruling request is submitted before the
UHWXUQLV¿OHGIRUWKH\HDULQZKLFKWKHWUDQVDFWLRQLVFRPSOHWHG
/HWWHU UXOLQJ UHTXHVWV UHJDUGLQJ HPSOR\PHQW VWDWXV HPSOR\HUHPSOR\HH UHODWLRQVKLS IURP
)HGHUDODJHQFLHVDQGLQVWUXPHQWDOLWLHVRUWKHLUZRUNHUVPXVWEHVXEPLWWHGWRWKH,QWHUQDO5HYHQXH
Service at the address set forth on the current Form SS-8, Determination of Worker Status for
Purposes of Federal Employment Taxes and Income Tax Withholding. If the Federal agency or
LQVWUXPHQWDOLW\VHUYLFHUHFLSLHQWWKH¿UPPDNHVWKHUHTXHVWWKH¿UPZLOOUHFHLYHDQ\LVVXHGOHWWHUUXOLQJ$FRS\ZLOODOVREHVHQWWRDQ\LGHQWL¿HGZRUNHUV,IWKHZRUNHUPDNHVWKHUHTXHVWDQG
WKH¿UPKDVEHHQFRQWDFWHGIRULQIRUPDWLRQERWKWKHZRUNHUDQGWKH¿UPZLOOUHFHLYHDQ\LVVXHG
OHWWHUUXOLQJ7KHOHWWHUUXOLQJZLOODSSO\WRDQ\LQGLYLGXDOVHQJDJHGE\WKH¿UPXQGHUVXEVWDQWLDOO\
similar circumstances. See section 12.04 of this revenue procedure for requests regarding employPHQWVWDWXVPDGHE\WD[SD\HUVRWKHUWKDQ)HGHUDODJHQFLHVDQGLQVWUXPHQWDOLWLHVRUWKHLUZRUNHUV

In procedural and
administrative matters

.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, manQHUDQGSURFHGXUHVIRUUHSRUWLQJDQGSD\LQJWD[HVRUWKH¿OLQJRILQIRUPDWLRQUHWXUQV

In Indian tribal government
matters

.12 3XUVXDQWWR5HY3URF&%DVPRGL¿HGE\5HY3URF
&%DQGWKLVUHYHQXHSURFHGXUHWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV
([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HVLVVXHVGHWHUPLQDWLRQVUHFRJQL]LQJDWULEDOHQWLW\
as an Indian tribal government within the meaning of § 7701(a)(40) or as a political subdivision of
an Indian tribal government under § 7871(d) if it determines, after consultation with the Secretary
RIWKH,QWHULRUWKDWWKHHQWLW\VDWLV¿HVWKHVWDWXWRU\GH¿QLWLRQRIDQ,QGLDQWULEDOJRYHUQPHQWRUKDV
been delegated governmental functions of an Indian tribal government. Requests for determinations under Rev. Proc. 84-37 are letter ruling requests, and, therefore, should be submitted to the
2I¿FHRI$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW
7D[HVSXUVXDQWWRWKLVUHYHQXHSURFHGXUH
(1) 'H¿QLWLRQRI,QGLDQWULEDOJRYHUQPHQW7KHWHUP³,QGLDQWULEDOJRYHUQPHQW´LVGH¿QHG
under § 7701(a)(40) to mean the governing body of any tribe, band, community, village, or group
RI,QGLDQVRULIDSSOLFDEOH$ODVND1DWLYHVZKLFKLVGHWHUPLQHGE\WKH6HFUHWDU\RIWKH7UHDVXU\
DIWHUFRQVXOWDWLRQZLWKWKH6HFUHWDU\RIWKH,QWHULRUWRH[HUFLVHJRYHUQPHQWDOIXQFWLRQV6HFWLRQ
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
WRH[HUFLVHRQHRUPRUHRIWKHVXEVWDQWLDOJRYHUQPHQWDOIXQFWLRQVRIWKH,QGLDQWULEDOJRYHUQPHQW
(2) Inclusion in list of tribal governments. Rev. Proc. 2008-55, 2008-2 C.B. 768, designates
WKH,QGLDQWULEDOHQWLWLHVWKDWDSSHDURQWKHFXUUHQWRUIXWXUHOLVWVRIIHGHUDOO\UHFRJQL]HG,QGLDQ
tribes published annually by the Department of the Interior, Bureau of Indian Affairs, as Indian
WULEDOJRYHUQPHQWVWKDWDUHWUHDWHGVLPLODUO\WRVWDWHVIRUFHUWDLQ)HGHUDOWD[SXUSRVHV5HY3URF
&%DVPRGL¿HGE\5HY3URF&%SURYLGHVDOLVWRISRlitical subdivisions of Indian tribal governments that are treated as political subdivisions of states
IRUFHUWDLQ)HGHUDOWD[SXUSRVHV8QGHU5HY3URFDVPRGL¿HGE\5HY3URFWULEDO
JRYHUQPHQWVRUVXEGLYLVLRQVUHFRJQL]HGXQGHU†DRU†GZLOOEHLQFOXGHGLQWKH
OLVWRIUHFRJQL]HGWULEDOJRYHUQPHQWHQWLWLHVLQIXWXUHOLVWVRIIHGHUDOO\UHFRJQL]HG,QGLDQWULEHV
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)

January 4, 2021

.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

16

Bulletin No. 2021–1

in all other cases on prospective transactions if the law or regulations require a determination of
WKHHIIHFWRIDSURSRVHGWUDQVDFWLRQIRU)HGHUDOWD[SXUSRVHVSee section 6.14(5) of this revenue
procedure.
In exempt organizations
matters

.14 ,QH[HPSWRUJDQL]DWLRQVPDWWHUVWKH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW
2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HVJHQHUDOO\LVVXHVOHWWHUUXOLQJVRQSURSRVHGWUDQVDFWLRQVRU
RQFRPSOHWHGWUDQVDFWLRQVLIWKHOHWWHUUXOLQJUHTXHVWLVVXEPLWWHGEHIRUHWKHUHWXUQLV¿OHGIRUWKH
\HDULQZKLFKWKHWUDQVDFWLRQLVFRPSOHWHG7KH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HVZLOOQRWRUGLQDULO\LVVXHDOHWWHUUXOLQJRQDFRPSOHWHGWUDQVDFWLRQLIWKHOHWWHUUXOLQJUHTXHVWLVVXEPLWWHGDIWHUWKHUHWXUQLV¿OHGIRUWKH\HDULQZKLFK
the transaction is completed. “Not ordinarily” means that unique and compelling reasons must
EHGHPRQVWUDWHGWRMXVWLI\WKHLVVXDQFHRIDOHWWHUUXOLQJVXEPLWWHGDIWHUWKHUHWXUQLV¿OHGIRUWKH
\HDULQZKLFKWKHWUDQVDFWLRQLVFRPSOHWHG7KHWD[SD\HUPXVWFRQWDFWWKH¿HOGRI¿FHKDYLQJDXGLW
MXULVGLFWLRQRYHUWKHLUUHWXUQDQGREWDLQWKH¿HOG¶VFRQVHQWWRWKHLVVXDQFHRIVXFKDOHWWHUUXOLQJ
See Rev. Proc. 2021-5, this Bulletin, for the procedures for issuing determination letters on
LVVXHVXQGHUWKHMXULVGLFWLRQRIWKH'LUHFWRU([HPSW2UJDQL]DWLRQV5XOLQJVDQG$JUHHPHQWVLQFOXGLQJGHWHUPLQDWLRQOHWWHUVRQWKHWD[H[HPSWVWDWXVRIRUJDQL]DWLRQVXQGHU†DQG†WKH
IRXQGDWLRQVWDWXVRIRUJDQL]DWLRQVGHVFULEHGLQ†FDQGWKHIRXQGDWLRQVWDWXVRIQRQH[empt charitable trusts described in § 4947(a)(1).

,QTXDOL¿HGUHWLUHPHQWSODQ
and IRA matters

.15,QTXDOL¿HGUHWLUHPHQWSODQDQG,5$PDWWHUVRWKHUWKDQWKRVHOLVWHGLQ5HY3URF
WKH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HV
will generally issue letter rulings on proposed transactions and on completed transactions, if the
OHWWHUUXOLQJUHTXHVWLVVXEPLWWHGEHIRUHWKHUHWXUQLV¿OHGIRUWKH\HDULQZKLFKWKHWUDQVDFWLRQLV
FRPSOHWHGLQFOXGLQJWKRVHLQYROYLQJ
 ††  RWKHU WKDQ WKH FRPSXWDWLRQ RI WKH H[FOXVLRQ UDWLR  F  E
H[FHSWZLWKUHVSHFWWRZKHWKHUWKHIRUPRIDSODQVDWLV¿HVWKHUHTXLUHPHQWVRI†EDVSURvided in Rev. Proc. 2021-4, this Bulletin), 404, 408, 408A, 412, 414(e) and (h), 511 through 514,
4971(b) and (g), 4972, 4973, 4974 (other than requests for a waiver under § 4974(d)), 4978, 4979,
DQG
(2) Waiver of the minimum funding standard (see Rev. Proc. 2004-15, 2004-1 C.B. 490, section
RIZKLFKLVPRGL¿HGE\5HY3URF
(3) 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,
&%
:LWKUHVSHFWWRHPSOR\HHVWRFNRZQHUVKLSSODQVDQGWD[FUHGLWHPSOR\HHVWRFNRZQHUVKLS
SODQV††GDQGH4XDOL¿FDWLRQLVVXHVDULVLQJXQGHUWKHVHVHFWLRQV
(as well as under §§ 401-420 generally) are generally within the jurisdiction of Employee Plans
Determinations. However, see5HY3URFVHFWLRQ
$EDWHPHQWRI¿UVWWLHUH[FLVHWD[HVXQGHU†
5HOLHIXQGHU†WKDWLVQRWUHODWHGWR5RWK,5$UHFKDUDFWHUL]DWLRQVDQG
*UDQWVRIH[WHQVLRQVRIWLPHRWKHUWKDQSXUVXDQWWR†

Bulletin No. 2021–1

17

January 4, 2021

A request to revoke an
election

.16,IDWD[SD\HULVUHTXLUHGWR¿OHDOHWWHUUXOLQJUHTXHVWWRREWDLQFRQVHQWWRUHYRNHDQHOHFWLRQ
PDGH RQ D UHWXUQ DQ$VVRFLDWH RI¿FH ZLOO FRQVLGHU WKH UHTXHVW HYHQ LI DQ H[DPLQDWLRQ RI WKH
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 (including the user
fee requirements for such a request, see generally section 15 of this revenue procedure) apply to a
OHWWHUUXOLQJUHTXHVWWRUHYRNHWKHHOHFWLRQ

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.
+RZHYHUDQ$VVRFLDWHRI¿FHPD\LVVXHOHWWHUUXOLQJVXQGHUWKHIROORZLQJFRQGLWLRQV
(1) Answer is clear or is reasonably certain. If the letter ruling request presents an issue for
which the answer seems clear by applying the statute, regulations, and applicable case law to the
facts or for which the answer seems reasonably certain but not entirely free from doubt.
(2) Answer is not reasonably certain. If the letter ruling request presents an issue for which
WKHDQVZHUGRHVQRWVHHPUHDVRQDEO\FHUWDLQWKH$VVRFLDWHRI¿FHPD\LVVXHWKHOHWWHUUXOLQJXVLQJ
LWVEHVWHIIRUWVWRDUULYHDWDGHWHUPLQDWLRQLILWLVLQWKHEHVWLQWHUHVWRIWD[DGPLQLVWUDWLRQ

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
RIWKHUHTXHVWWKHLGHQWLFDOLVVXHLVLQYROYHGLQWKHWD[SD\HU¶VUHWXUQIRUDQHDUOLHUSHULRGDQGWKDW
issue—
LVEHLQJH[DPLQHGE\D¿HOGRI¿FH
LVEHLQJFRQVLGHUHGE\$SSHDOV
LVSHQGLQJLQOLWLJDWLRQLQDFDVHLQYROYLQJWKHWD[SD\HURUDUHODWHGSDUW\
KDVEHHQH[DPLQHGE\D¿HOGRI¿FHRUFRQVLGHUHGE\$SSHDOVDQGWKHVWDWXWRU\SHULRGRI
OLPLWDWLRQVRQDVVHVVPHQWRURQ¿OLQJDFODLPIRUUHIXQGRUFUHGLWRIWD[KDVQRWH[SLUHGRU
KDVEHHQH[DPLQHGE\D¿HOGRI¿FHRUFRQVLGHUHGE\$SSHDOVDQGDFORVLQJDJUHHPHQWFRYHULQJWKHLVVXHRUOLDELOLW\KDVQRWEHHQHQWHUHGLQWRE\D¿HOGRI¿FHRUE\$SSHDOV
,IDUHWXUQGHDOLQJZLWKDQLVVXHIRUDSDUWLFXODU\HDULV¿OHGZKLOHDUHTXHVWIRUDOHWWHUUXOLQJ
RQWKDWLVVXHLVSHQGLQJDQ$VVRFLDWHRI¿FHZLOOLVVXHWKHOHWWHUUXOLQJXQOHVVLWLVQRWL¿HGE\WKH
WD[SD\HURURWKHUZLVHOHDUQVWKDWDQH[DPLQDWLRQRIWKDWLVVXHRUWKHLGHQWLFDOLVVXHRQDQHDUOLHU
\HDU¶VUHWXUQKDVEHHQVWDUWHGE\D¿HOGRI¿FHSee section 7.05 of this revenue procedure. In inFRPHDQGJLIWWD[PDWWHUVDVZHOODVLQTXDOL¿HGUHWLUHPHQWSODQ,5$DQGH[HPSWRUJDQL]DWLRQV

January 4, 2021

18

Bulletin No. 2021–1

PDWWHUVHYHQLIDQH[DPLQDWLRQKDVEHJXQDQ$VVRFLDWHRI¿FHRUGLQDULO\ZLOOLVVXHWKHOHWWHUUXOLQJLIWKH¿HOGRI¿FHDJUHHVE\PHPRUDQGXPWRWKHLVVXDQFHRIWKHOHWWHUUXOLQJ
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. 2021-3, this
Bulletin, and Rev. Proc. 2021-7, 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
DSSURSULDWHLQWKHLQWHUHVWRIVRXQGWD[DGPLQLVWUDWLRQLQFOXGLQJGXHWRUHVRXUFHFRQVWUDLQWVRURQ
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
DSSURSULDWHDQGLQWKHLQWHUHVWRIVRXQGWD[DGPLQLVWUDWLRQLVVXHDQLQIRUPDWLRQOHWWHUFDOOLQJDWWHQWLRQWRZHOOHVWDEOLVKHGSULQFLSOHVRIWD[ODZ
,IWKH6HUYLFHGHWHUPLQHVWKDWLWLVQRWLQWKHLQWHUHVWRIVRXQGWD[DGPLQLVWUDWLRQWRLVVXHDOHWWHU
ruling or determination letter due to resource constraints, it will adopt a consistent approach with
UHVSHFWWRWD[SD\HUVWKDWUHTXHVWDUXOLQJRQWKHVDPHLVVXH7KH6HUYLFHZLOODOVRFRQVLGHUDGGLQJ
WKHLVVXHWRWKHQRUXOHOLVWDWWKH¿UVWRSSRUWXQLW\See sections 2.01 and 3.02 of Rev. Proc. 2021-3,
this Bulletin.

Ordinarily not on part of
an integrated transaction

.03 (1) General rule.$Q$VVRFLDWHRI¿FHRUGLQDULO\ZLOOQRWLVVXHDOHWWHUUXOLQJRQRQO\SDUW
of an integrated transaction. If a part of a transaction falls under a no-rule area, a letter ruling on
RWKHUSDUWVRIWKHWUDQVDFWLRQPD\EHLVVXHG%HIRUHSUHSDULQJWKHOHWWHUUXOLQJUHTXHVWDWD[SD\HU
VKRXOGFDOODEUDQFKKDYLQJMXULVGLFWLRQIRUWKHPDWWHUVRQZKLFKWKHWD[SD\HULVVHHNLQJDOHWWHU
UXOLQJWRGLVFXVVZKHWKHUWKH$VVRFLDWHRI¿FHZLOOLVVXHDOHWWHUUXOLQJRQSDUWRIWKHWUDQVDFWLRQ
6LJQL¿FDQWLVVXHUXOLQJ(a) No rule areas7KH6HUYLFHZLOOQRWUXOHRQWKHTXDOL¿FDWLRQ
RIDQ\WUDQVDFWLRQXQGHU††RU†RUH[FHSWDVSURYLGHGLQSDUDJUDSKERIWKLV
VHFWLRQRQZKHWKHUDWUDQVDFWLRQFRQVWLWXWHVDUHRUJDQL]DWLRQZLWKLQWKHPHDQLQJRI†
(other than under §§ 368(a)(1)(D) and 355), regardless of whether such transaction is part of
an integrated transaction (see section 3.01(59) of Rev. Proc. 2021-3, this Bulletin). Instead, the
$VVRFLDWH&KLHI&RXQVHO&RUSRUDWHZLOORQO\LVVXHDOHWWHUUXOLQJRQVLJQL¿FDQWLVVXHVZLWKLQ
the meaning of section 3.01(59) of Rev. Proc. 2021-3, this Bulletin) presented in a transaction deVFULEHGLQ†††RWKHUWKDQXQGHU††D'DQGRU†)RUH[DPSOH
WKH6HUYLFHPD\UXOHRQVLJQL¿FDQWLVVXHVXQGHU†GFRQWLQXLW\RIEXVLQHVVHQWHUSULVH
and § 1.368-1(e) (continuity of interest). Letter rulings requested under this section 6.03(2)(a) are
subject to the no-rule policies of Rev. Proc. 2021-3, this Bulletin.
(b) Section 355 distributions and related transactions. Pursuant to section 4 of Rev. Proc. 2017,5%DPSOL¿HGDQGPRGL¿HGE\5HY3URF,5%LQ
OLHXRIUHTXHVWLQJD7UDQVDFWLRQDO5XOLQJUHJDUGLQJD&RYHUHG7UDQVDFWLRQDWD[SD\HUPD\UHTXHVW
D6LJQL¿FDQW,VVXH5XOLQJ/HWWHUUXOLQJVUHTXHVWHGXQGHUWKLVVHFWLRQEDUHVXEMHFWWRWKH
policies of Rev. Proc. 2021-3, this Bulletin. However, the Service will not rule on any aspect of
D&RYHUHG7UDQVDFWLRQLQFOXGLQJDQ\VLJQL¿FDQWLVVXHLIVHFWLRQRI5HY3URF
applies, and the Service will ordinarily not rule on any aspect of a Covered Transaction, including
DQ\VLJQL¿FDQWLVVXHLIVHFWLRQRI5HY3URFDSSOLHV
(3) Submission requirements. Before preparing a letter ruling request under section 6.03(2) of
WKLVUHYHQXHSURFHGXUHLQYROYLQJVLJQL¿FDQWLVVXHVSUHVHQWHGLQDWUDQVDFWLRQGHVFULEHGLQ†
†††RU†WKHWD[SD\HULVHQFRXUDJHGWRFDOOWKH2I¿FHRI$VVRFLDWH&KLHI
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 section 6.03(2).

Bulletin No. 2021–1

19

January 4, 2021

The Service reserves the right to rule on any other aspect of the transaction (including ruling
DGYHUVHO\WRWKHH[WHQWWKH6HUYLFHEHOLHYHVLWLVLQWKHEHVWLQWHUHVWVRIWD[DGPLQLVWUDWLRQCf.
section 2.01 of Rev. Proc. 2021-3, this Bulletin.
7KHWD[SD\HUPD\UHTXHVWUXOLQJVRQRQHRUPRUHVLJQL¿FDQWLVVXHVLQDVLQJOHOHWWHUUXOLQJUHTXHVW/HWWHUUXOLQJUHTXHVWVXQGHUVHFWLRQPXVWLQFOXGHWKHIROORZLQJIRUHDFKVLJQL¿FDQW
LVVXH
D$QDUUDWLYHGHVFULSWLRQRIWKHWUDQVDFWLRQWKDWSXWVWKHLVVXHLQFRQWH[W
E$VWDWHPHQWLGHQWLI\LQJWKHLVVXH
(c) An analysis of the relevant law, which should set forth the authorities most closely related
WRWKHLVVXHDQGH[SODLQZK\WKHVHDXWKRULWLHVGRQRWUHVROYHWKHLVVXHDQGDQH[SODQDWLRQFRQFHUQLQJZK\WKHLVVXHLVVLJQL¿FDQWZLWKLQWKHPHDQLQJRIVHFWLRQRI5HY3URF
WKLV%XOOHWLQDQG
(d) The precise ruling(s) requested.
7KHWD[SD\HUVKRXOGFRQVXOWRWKHUSXEOLVKHGDXWKRULWLHVseeIRUH[DPSOH$SSHQGL[*RIWKLV
UHYHQXHSURFHGXUHZKLFKLGHQWL¿HVFHUWDLQFKHFNOLVWDQGJXLGHOLQHUHYHQXHSURFHGXUHVLQFOXGLQJ
Rev. Proc. 2017-52, 2017-41 I.R.B. 283, and Rev. Proc. 2018-53, 2018-43 I.R.B. 667, to identify
representations, information, and analysis that may be required.)
,IWKH6HUYLFHLVVXHVDOHWWHUUXOLQJRQDVLJQL¿FDQWLVVXHXQGHUVHFWLRQWKHQWKHOHWWHU
UXOLQJZLOOVWDWHWKDWQRRSLQLRQLVH[SUHVVHGDVWRDQ\LVVXHRUVWHSQRWVSHFL¿FDOO\DGGUHVVHGE\
the letter. In addition, letter rulings issued under section 6.03(2) will contain the following (or
VLPLODUODQJXDJH
This letter is issued pursuant to section 6.03(2) of Rev. Proc. 2021-1, 2021-1 I.R.B. 1, reJDUGLQJ RQH RU PRUH VLJQL¿FDQW LVVXHV XQGHU †  †  †  †  RU †  7KH
UXOLQJ>V@FRQWDLQHGLQWKLVOHWWHURQO\DGGUHVV>HV@RQHRUPRUHVLJQL¿FDQWLVVXHVLQYROYHGLQ
WKHWUDQVDFWLRQ7KLV2I¿FHH[SUHVVHVQRRSLQLRQDVWRWKHRYHUDOOWD[FRQVHTXHQFHVRIWKH
WUDQVDFWLRQVGHVFULEHGLQWKLVOHWWHURUDVWRDQ\LVVXHQRWVSHFL¿FDOO\DGGUHVVHGE\WKHUXOing[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,
LVWKHHPSOR\HUZKHQRQHHQWLW\LVWUHDWLQJWKHZRUNHUDVDQHPSOR\HH

Ordinarily not to business
associations or groups

.05 The Service ordinarily does not issue letter rulings or determination letters to business,
WUDGHRULQGXVWULDODVVRFLDWLRQVRUWRVLPLODUJURXSVFRQFHUQLQJWKHDSSOLFDWLRQRIWKHWD[ODZV
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. See also Rev. Proc. 2016-19, 2016-13 I.R.B.
ZKLFKGHVFULEHVSURFHGXUHVIRUWD[SD\HUVDQGRWKHUHQWLWLHVWRVXEPLWLVVXHVIRUFRQVLGHUDWLRQ
XQGHUWKH6HUYLFH¶V,QGXVWU\,VVXH5HVROXWLRQ,,53URJUDP

January 4, 2021

20

Bulletin No. 2021–1

The Service may issue letter rulings or determination letters to groups or associations on their
RZQWD[VWDWXVRUOLDELOLW\LIWKHUHTXHVWPHHWVWKHUHTXLUHPHQWVRIWKLVUHYHQXHSURFHGXUH
Ordinarily not where the
request does not address
the tax status, liability, or
reporting obligations of the
requester

.067KH6HUYLFHRUGLQDULO\GRHVQRWLVVXHOHWWHUUXOLQJVRUGHWHUPLQDWLRQOHWWHUVUHJDUGLQJWKHWD[
FRQVHTXHQFHVRIDWUDQVDFWLRQIRUWD[SD\HUVZKRDUHQRWGLUHFWO\LQYROYHGLQWKHUHTXHVWLIWKHUHTXHVWHGOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUZRXOGQRWDGGUHVVWKHWD[VWDWXVOLDELOLW\RUUHSRUWLQJ
REOLJDWLRQVRIWKHUHTXHVWHU)RUH[DPSOHDWD[SD\HUPD\QRWUHTXHVWDOHWWHUUXOLQJUHODWLQJWRWKH
WD[FRQVHTXHQFHVRIDWUDQVDFWLRQWRDFXVWRPHURUFOLHQWLIWKHWD[VWDWXVOLDELOLW\RUUHSRUWLQJ
REOLJDWLRQVRIWKHWD[SD\HUZRXOGQRWEHDGGUHVVHGLQWKHUXOLQJEHFDXVHWKHFXVWRPHURUFOLHQWLV
QRWGLUHFWO\LQYROYHGLQWKHOHWWHUUXOLQJUHTXHVW7KHWD[OLDELOLW\RIHDFKVKDUHKROGHULVKRZHYHU
GLUHFWO\LQYROYHGLQDOHWWHUUXOLQJRQWKHUHRUJDQL]DWLRQRIDFRUSRUDWLRQ$FFRUGLQJO\DFRUSRUDWH
WD[SD\HUFRXOGUHTXHVWDOHWWHUUXOLQJWKDWVROHO\DGGUHVVHGWKHWD[FRQVHTXHQFHVWRLWVVKDUHKROGHUV
RIDSURSRVHGUHRUJDQL]DWLRQ
5HY3URF&%VHWVIRUWKUXOHVIRUOHWWHUUXOLQJUHTXHVWVLQYROYLQJWD[H[empt state and local government obligations.

Ordinarily not to foreign
governments

.07 The Service ordinarily does not issue letter rulings or determination letters to foreign govHUQPHQWV RU WKHLU SROLWLFDO VXEGLYLVLRQV DERXW WKH 86 WD[ HIIHFWV RI WKHLU ODZV7KH$VVRFLDWH
RI¿FHVDOVRGRQRWLVVXHOHWWHUUXOLQJVRQWKHHIIHFWRIDWD[WUHDW\RQWKHWD[ODZVRIDWUHDW\FRXQWU\
IRUSXUSRVHVRIGHWHUPLQLQJWKHWD[RIWKHWUHDW\FRXQWU\See section 13.02 of Rev. Proc. 201540, 2015-35 I.R.B. 236. Treaty partners can continue to address matters such as these under the
SURYLVLRQVRIWKHDSSOLFDEOHWD[WUHDW\,QDGGLWLRQWKH$VVRFLDWHRI¿FHVPD\LVVXHOHWWHUUXOLQJVWR
IRUHLJQJRYHUQPHQWVRUWKHLUSROLWLFDOVXEGLYLVLRQVRQWKHLURZQWD[VWDWXVRUOLDELOLW\XQGHU86
law if the request meets the requirements of this revenue procedure.

Ordinarily not on Federal
tax consequences of
proposed legislation

.087KH$VVRFLDWHRI¿FHVRUGLQDULO\GRQRWLVVXHOHWWHUUXOLQJVRQDPDWWHULQYROYLQJWKH)HGHUDO
WD[ FRQVHTXHQFHV RI DQ\ SURSRVHG )HGHUDO VWDWH ORFDO PXQLFLSDO RU IRUHLJQ OHJLVODWLRQ 7KH
2I¿FHRI$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW
7D[HVPD\LVVXHOHWWHUUXOLQJVUHJDUGLQJWKHHIIHFWRISURSRVHGVWDWHORFDORUPXQLFLSDOOHJLVlation 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
$VVRFLDWHRI¿FHVDOVRPD\SURYLGHJHQHUDOLQIRUPDWLRQLQUHVSRQVHWRDQLQTXLU\

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
SXEOLVKHGJXLGDQFHSURMHFWWKH$VVRFLDWHRI¿FHVPD\FRQVLGHUDOOOHWWHUUXOLQJUHTXHVWVXQOHVVWKH
issue is covered by section 6 of this revenue procedure, Rev. Proc. 2021-3, this Bulletin, or Rev.
Proc. 2021-7, 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
KHOG IULYRORXV RU JURXQGOHVV ([DPSOHV RI IULYRORXV RU JURXQGOHVV LVVXHV LQFOXGH EXW DUH QRW
OLPLWHGWR
IULYRORXV³FRQVWLWXWLRQDO´FODLPVVXFKDVFODLPVWKDWWKHUHTXLUHPHQWWR¿OHWD[UHWXUQVDQG
SD\WD[HVFRQVWLWXWHVDQXQUHDVRQDEOHVHDUFKEDUUHGE\WKH)RXUWK$PHQGPHQWYLRODWHV)LIWKDQG
Fourteenth Amendment protections of due process, violates Thirteenth Amendment protections
DJDLQVW LQYROXQWDU\ VHUYLWXGH RU LV XQHQIRUFHDEOH EHFDXVH WKH 6L[WHHQWK$PHQGPHQW GRHV QRW
DXWKRUL]HQRQDSSRUWLRQHGGLUHFWWD[HVRUZDVQHYHUUDWL¿HG

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January 4, 2021

FODLPVWKDWLQFRPHWD[HVDUHYROXQWDU\WKDWWKHWHUP³LQFRPH´LVQRWGH¿QHGLQWKH,QWHUQDO
5HYHQXH&RGHRUWKDWSUHSDUDWLRQDQG¿OLQJRI)HGHUDOLQFRPHWD[UHWXUQVYLRODWHVWKH3DSHUZRUN
5HGXFWLRQ$FW
FODLPVWKDWWD[PD\EHLPSRVHGRQO\RQFRLQVPLQWHGXQGHUDJROGRUVLOYHUVWDQGDUGRUWKDW
UHFHLSWRI)HGHUDO5HVHUYH1RWHVGRHVQRWFDXVHDQDFFUHWLRQWRZHDOWK
FODLPVWKDWDSHUVRQ¶VLQFRPHLVQRWWD[DEOHEHFDXVHKHRUVKHIDOOVZLWKLQDFODVVHQWLWOHGWR
³UHSDUDWLRQFODLPV´RUDQH[WUDVWDWXWRU\FODVVRILQGLYLGXDOVH[HPSWIURPWD[e.g., “free-born”
LQGLYLGXDOV
FODLPVWKDWDWD[SD\HUFDQUHIXVHWRSD\WD[HVRQWKHEDVLVRIRSSRVLWLRQWRFHUWDLQ*RYHUQPHQWDOH[SHQGLWXUHV
FODLPVWKDWWD[HVDSSO\RQO\WR)HGHUDOHPSOR\HHVRQO\WRUHVLGHQWVRI3XHUWR5LFR*XDP
WKH869LUJLQ,VODQGVWKH'LVWULFWRI&ROXPELDRU³)HGHUDOHQFODYHV´RUWKDW††WKURXJK
RUDQ\RWKHUSURYLVLRQRIWKH&RGHLPSRVHVWD[HVRQ86FLWL]HQVDQGUHVLGHQWVRQO\RQLQFRPHGHULYHGIURPIRUHLJQEDVHGDFWLYLWLHV
FODLPVWKDWZDJHVRUSHUVRQDOVHUYLFHLQFRPHDUH³QRWLQFRPH´DUH³QRQWD[DEOHUHFHLSWV´
RUDUHD³QRQWD[DEOHH[FKDQJHIRUODERU´
FODLPVWKDWLQFRPHWD[ZLWKKROGLQJE\DQHPSOR\HURQZDJHVLVRSWLRQDORU
RWKHUFODLPVWKDWWKHFRXUWVKDYHFKDUDFWHUL]HGDVIULYRORXVRUJURXQGOHVV
$GGLWLRQDOH[DPSOHVRIIULYRORXVRUJURXQGOHVVLVVXHVPD\EHIRXQGLQ,56SXEOLFDWLRQVDQG
other guidance (including, but not limited to, Notice 2010-33, Frivolous Positions, and I.R.M.
([KLELW)ULYRORXV$UJXPHQWV
No “comfort” letter rulings

.11([FHSWZLWKUHVSHFWWRD&RYHUHG7UDQVDFWLRQZLWKLQWKHPHDQLQJRI5HY3URF
,5%DPSOL¿HGDQGPRGL¿HGE\5HY3URF,5%DOHWWHU
ruling will not be issued with respect to an issue that is clearly and adequately addressed by a
VWDWXWH UHJXODWLRQ RU FRXUW GHFLVLRQ RU UHYHQXH UXOLQJV UHYHQXH SURFHGXUHV QRWLFHV RU RWKHU
DXWKRULWLHVSXEOLVKHGLQWKH,QWHUQDO5HYHQXH%XOOHWLQ&RPIRUW5XOLQJ+RZHYHUH[FHSWZLWK
UHVSHFWWRLVVXHVXQGHU†††RU†DQGWKHWD[FRQVHTXHQFHVUHVXOWLQJIURPWKH
application of such Code sections (see generally section 6.03(2) of this revenue procedure), the
$VVRFLDWHRI¿FHPD\LQLWVGLVFUHWLRQGHFLGHWRLVVXHD&RPIRUW5XOLQJLIDQ$VVRFLDWHRI¿FHLV
RWKHUZLVHLVVXLQJDOHWWHUUXOLQJWRWKHWD[SD\HURQDQRWKHULVVXHDULVLQJLQWKHVDPHWUDQVDFWLRQ

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
DIWHUUHWXUQ¿OHG

.13$Q$VVRFLDWHRI¿FHZLOOQRWLVVXHDOHWWHUUXOLQJRQWKHUHSODFHPHQWRILQYROXQWDULO\FRQYHUWHGSURSHUW\ZKHWKHURUQRWWKHSURSHUW\KDVEHHQUHSODFHGLIWKHWD[SD\HUKDVDOUHDG\¿OHG
D)HGHUDOWD[UHWXUQIRUWKH¿UVWWD[DEOH\HDULQZKLFKDQ\RIWKHJDLQZDVUHDOL]HGIURPWKHFRQverted property. A Director may issue a determination letter in this case. See section 12.01 of this
revenue procedure.

January 4, 2021

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Bulletin No. 2021–1

Circumstances under which
determination letters are
not issued by a Director

.14 A Director will not issue a determination letter if—
WKHWD[SD\HUKDVGLUHFWHGDVLPLODULQTXLU\WRDQ$VVRFLDWHRI¿FH
WKHVDPHLVVXHLQYROYLQJWKHVDPHWD[SD\HURUDUHODWHGSDUW\LVSHQGLQJLQDFDVHLQOLWLJDWLRQRUEHIRUH$SSHDOV
WKHUHTXHVWLQYROYHVDQLQGXVWU\ZLGHSUREOHP
WKHVSHFL¿FHPSOR\PHQWWD[TXHVWLRQDWLVVXHLQWKHUHTXHVWKDVEHHQRULVEHLQJFRQVLGHUHG
E\WKH&HQWUDO2I¿FHRIWKH6RFLDO6HFXULW\$GPLQLVWUDWLRQRUWKH5DLOURDG5HWLUHPHQW%RDUGIRU
WKHVDPHWD[SD\HURUDUHODWHGSDUW\RU
(5) the request is for a determination of constructive sales price under § 4216(b) or § 4218(c),
ZKLFK GHDO ZLWK VSHFLDO SURYLVLRQV DSSOLFDEOH WR WKH PDQXIDFWXUHUV H[FLVH WD[ 7KH$VVRFLDWH
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?

This section provides the general instructions for requesting letter rulings and determination
letters. SeeVHFWLRQRIWKLVUHYHQXHSURFHGXUHIRUWKHVSHFL¿FDQGDGGLWLRQDOSURFHGXUHVIRUUHquesting a change in method of accounting.
Requests for letter rulings, closing agreements, and determination letters require the payment of
WKHDSSOLFDEOHXVHUIHHOLVWHGLQ$SSHQGL[$RIWKLVUHYHQXHSURFHGXUH&HUWDLQFKDQJHVLQPHWKRG
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$SSHQGL[*RIWKLVUHYHQXHSURFHGXUH)RU
additional user fee requirements, see section 15 of this revenue procedure.
6SHFL¿FDQGDGGLWLRQDOLQVWUXFWLRQVDOVRDSSO\WRUHTXHVWVIRUOHWWHUUXOLQJVDQGGHWHUPLQDWLRQ
OHWWHUVRQFHUWDLQPDWWHUV7KRVHPDWWHUVDUHOLVWHGLQ$SSHQGL[*RIWKLVUHYHQXHSURFHGXUHZLWKD
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—
DQDPHVDGGUHVVHVWHOHSKRQHQXPEHUVDQGWD[SD\HULGHQWL¿FDWLRQQXPEHUVRIDOOLQWHUHVWHG
parties (the term “all interested parties” does not include all shareholders of a widely held corpoUDWLRQUHTXHVWLQJDOHWWHUUXOLQJUHODWLQJWRDUHRUJDQL]DWLRQRUDOOHPSOR\HHVZKHUHDODUJHQXPEHU
PD\EHLQYROYHG
(b) the annual accounting period, and the overall method of accounting (cash or accrual) for
PDLQWDLQLQJWKHDFFRXQWLQJERRNVDQG¿OLQJWKH)HGHUDOLQFRPHWD[UHWXUQRIDOOLQWHUHVWHGSDUWLHV
FDGHVFULSWLRQRIWKHWD[SD\HU¶VEXVLQHVVRSHUDWLRQV

Bulletin No. 2021–1

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January 4, 2021

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HDGHWDLOHGGHVFULSWLRQRIWKHWUDQVDFWLRQDQG
IDOORWKHUIDFWVUHODWLQJWRWKHWUDQVDFWLRQRUWRWKHWD[SD\HU¶VUHTXHVWHGWD[WUHDWPHQWWKHUHRI
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 transactions must be submitted
with the request. But seeVHFWLRQVDQGRI5HY3URF,5%DPSOL¿HG
DQGPRGL¿HGE\5HY3URF,5%IRUUHTXLUHPHQWVUHODWLQJWRUXOLQJUHquests under § 355, and section 3.04 of Rev. Proc. 2018-53, 2018-43 I.R.B. 667, for requirements
UHODWLQJWRUXOLQJUHTXHVWVLQYROYLQJDVVXPSWLRQRUVDWLVIDFWLRQRIWKHGLVWULEXWLQJFRUSRUDWLRQ¶V
debt in connection with § 355 distributions.
,IWKHUHTXHVWFRQFHUQVDFRUSRUDWHGLVWULEXWLRQUHRUJDQL]DWLRQRUVLPLODUWUDQVDFWLRQWKHFRUSRUDWHEDODQFHVKHHWDQGSUR¿WDQGORVVVWDWHPHQWVKRXOGDOVREHVXEPLWWHGBut see sections 3.02
and 4 of Rev. Proc. 2017-52 for requirements relating to ruling requests under § 355. If the request
UHODWHVWRDSURVSHFWLYHWUDQVDFWLRQWKHPRVWUHFHQWEDODQFHVKHHWDQGSUR¿WDQGORVVVWDWHPHQW
should be submitted. But seeVHFWLRQVDQGRI5HY3URFDPSOL¿HGDQGPRGL¿HG
by Rev. Proc. 2018-53) for requirements relating to ruling requests under § 355.
,IDQ\GRFXPHQWLQFOXGLQJDQ\EDODQFHVKHHWDQGSUR¿WDQGORVVVWDWHPHQWLVLQDODQJXDJH
RWKHUWKDQ(QJOLVKWKHWD[SD\HUPXVWDOVRVXEPLWDFHUWL¿HG(QJOLVKWUDQVODWLRQRIWKHGRFXPHQW
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
EHFDXVHWKH\EHFRPHSDUWRIWKH6HUYLFH¶V¿OHDQGZLOOQRWEHUHWXUQHG
(b) Foreign laws.7KHWD[SD\HUPXVWVXEPLWZLWKWKHUHTXHVWDFRS\RIWKHUHOHYDQWSDUWVRI
all foreign laws, including statutes, regulations, administrative pronouncements, and any other
UHOHYDQWOHJDODXWKRULW\7KHGRFXPHQWVVXEPLWWHGPXVWEHLQWKHRI¿FLDOODQJXDJHRIWKHFRXQWU\
LQYROYHGDQGPXVWEHFRSLHGIURPDQRI¿FLDOSXEOLFDWLRQRIWKHIRUHLJQJRYHUQPHQWRUDQRWKHU
ZLGHO\DYDLODEOHDQGJHQHUDOO\DFFHSWHGSXEOLFDWLRQ,I(QJOLVKLVQRWWKHRI¿FLDOODQJXDJHRIWKH
FRXQWU\LQYROYHGWKHWD[SD\HUPXVWDOVRVXEPLWDFRS\RIDQ(QJOLVKODQJXDJHYHUVLRQRIWKH
UHOHYDQWSDUWVRIDOOIRUHLJQODZV7KLVWUDQVODWLRQPXVWEHLIURPDQRI¿FLDOSXEOLFDWLRQRIWKH
IRUHLJQJRYHUQPHQWRUDQRWKHUZLGHO\DYDLODEOHJHQHUDOO\DFFHSWHGSXEOLFDWLRQRULLDFHUWL¿HG
English translation submitted in accordance with paragraph (c) of this section 7.01(2).
7KHWD[SD\HUPXVWLGHQWLI\WKHWLWOHDQGGDWHRISXEOLFDWLRQLQFOXGLQJXSGDWHVRIDQ\ZLGHO\
DYDLODEOHDQGJHQHUDOO\DFFHSWHGSXEOLFDWLRQWKDWWKHWD[SD\HURUWKHWD[SD\HU¶VTXDOL¿HGWUDQVODtor) 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 EnJOLVKDQGFHUWL¿HG(QJOLVKWUDQVODWLRQVRIODZVLQDODQJXDJHRWKHUWKDQ(QJOLVK7KHWD[SD\HU
PXVWVXEPLWZLWKWKHUHTXHVWDQDFFXUDWHDQGFRPSOHWHFHUWL¿HG(QJOLVKWUDQVODWLRQRIWKHUHOHYDQW

January 4, 2021

24

Bulletin No. 2021–1

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
WKHWD[SD\HUFKRRVHVWRVXEPLWFHUWL¿HG(QJOLVKWUDQVODWLRQVRIIRUHLJQODZVWKRVHWUDQVODWLRQV
PXVWEHEDVHGRQDQRI¿FLDOSXEOLFDWLRQRIWKHIRUHLJQJRYHUQPHQWRUDQRWKHUZLGHO\DYDLODEOH
DQGJHQHUDOO\DFFHSWHGSXEOLFDWLRQ,QHLWKHUFDVHWKHWUDQVODWLRQPXVWEHWKDWRIDTXDOL¿HGWUDQVODWRUDQGPXVWEHDWWHVWHGWRE\WKHWUDQVODWRU7KHDWWHVWDWLRQPXVWFRQWDLQLDVWDWHPHQWWKDWWKH
WUDQVODWLRQVXEPLWWHGLVDWUXHDQGDFFXUDWHWUDQVODWLRQRIWKHIRUHLJQODQJXDJHGRFXPHQWRUODZ
LLDVWDWHPHQWDVWRWKHDWWHVWDQW¶VTXDOL¿FDWLRQVDVDWUDQVODWRUDQGDVWRWKDWDWWHVWDQW¶VTXDOL¿FDWLRQVDQGNQRZOHGJHUHJDUGLQJWD[PDWWHUVRUIRUHLJQODZLIWKHODZLVQRWDWD[ODZDQGLLLWKH
DWWHVWDQW¶VQDPHDQGDGGUHVV
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
PXVWEHLQFOXGHGLQWKHWD[SD\HU¶VDQDO\VLVRIIDFWVLQWKHUHTXHVWUDWKHUWKDQPHUHO\LQFRUSRUDWHG
by reference.

Same issue in any return
and whether return is
under examination, before
Appeals, before a Federal
court, or being considered
E\WKH3HQVLRQ%HQH¿W
Guaranty Corporation, by
the Department of Labor,
or by the Department of
Health and Human Services

(4) Statement regarding whether same issue is presented in any return and additional
information required for § 301.9100 requests. The request must state whether, to the best of the
NQRZOHGJHRIERWKWKHWD[SD\HUDQGWKHWD[SD\HU¶VUHSUHVHQWDWLYHVWKHVDPHLVVXHLVSUHVHQWHG
LQDQ\UHWXUQRIWKHWD[SD\HUDUHODWHGSDUW\ZLWKLQWKHPHDQLQJRI†ERU†ERU
DPHPEHURIDQDI¿OLDWHGJURXSRIZKLFKWKHWD[SD\HULVDOVRDPHPEHUZLWKLQWKHPHDQLQJRI
§ 1504, or of any predecessor.
7KHUHTXHVWPXVWDOVRVWDWHZKHWKHUWRWKHEHVWRIWKHNQRZOHGJHRIERWKWKHWD[SD\HUDQGWKH
WD[SD\HU¶VUHSUHVHQWDWLYHVDQ\UHWXUQRQZKLFKWKHVDPHLVVXHLVSUHVHQWHG
DLVFXUUHQWO\XQGHUH[DPLQDWLRQEHIRUH$SSHDOVRUEHIRUHD)HGHUDOFRXUW
EZDVSUHYLRXVO\XQGHUH[DPLQDWLRQEHIRUH$SSHDOVRUEHIRUHD)HGHUDOFRXUW
FLQTXDOL¿HGUHWLUHPHQWSODQPDWWHUVLVEHLQJFRQVLGHUHGE\WKH3HQVLRQ%HQH¿W*XDUDQW\
&RUSRUDWLRQRUWKH'HSDUWPHQWRI/DERURU
(d) in health care matters, is being considered by the Department of Labor or the Department
of Health and Human Services.
That the same issue is merely presented in a return does not preclude the Service from issuing
a ruling, but the Service will not ordinarily issue a ruling if, at the time of the request, the idenWLFDOLVVXHLVXQGHUH[DPLQDWLRQRUFRQVLGHUDWLRQRULQOLWLJDWLRQSee section 6.01 of this revenue
procedure.
$OLPLWHGH[FHSWLRQWRWKHDERYHUXOHLVPDGHIRUD†UHTXHVWSee section 5.03 of this
UHYHQXHSURFHGXUH,ID†UHTXHVWLQYROYHVDWD[\HDUWKDWLVFXUUHQWO\XQGHUH[DPLQDWLRQ
EHIRUH$SSHDOVRUEHIRUHD)HGHUDOFRXUWWKHWD[SD\HUPXVWQRWLI\WKH6HUYLFHDVRXWOLQHGDERYH
7KLVQRWL¿FDWLRQPXVWLQFOXGHWKHQDPHDQGWHOHSKRQHQXPEHURIWKHH[DPLQLQJDJHQWRU$SSHDOV
RI¿FHU

Same or similar issue
in a request previously
submitted or currently
pending

Bulletin No. 2021–1

(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
WKHEHVWRIWKHNQRZOHGJHRIERWKWKHWD[SD\HUDQGWKHWD[SD\HU¶VUHSUHVHQWDWLYHV²

25

January 4, 2021

DWKH6HUYLFHSUHYLRXVO\UXOHGRQWKHVDPHRUDVLPLODULVVXHIRUWKHWD[SD\HUDUHODWHGSDUW\
ZLWKLQWKHPHDQLQJRI†RU†ERUDPHPEHURIDQDI¿OLDWHGJURXSRIZKLFKWKHWD[SD\HULVDOVRDPHPEHUZLWKLQWKHPHDQLQJRI†RUIRUDSUHGHFHVVRU
EWKHWD[SD\HUDUHODWHGSDUW\DSUHGHFHVVRURUDQ\RIWKHLUUHSUHVHQWDWLYHVSUHYLRXVO\VXEmitted a request (including an application for change in method of accounting) involving the same
RUDVLPLODULVVXHEXWQROHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUZDVLVVXHG
FWKHWD[SD\HUDUHODWHGSDUW\RUDSUHGHFHVVRUSUHYLRXVO\VXEPLWWHGDUHTXHVWLQFOXGLQJDQ
application for change in method of accounting) involving the same or a similar issue that is curUHQWO\SHQGLQJZLWKWKH6HUYLFH
GDWWKHVDPHWLPHDVWKLVUHTXHVWWKHWD[SD\HURUDUHODWHGSDUW\LVSUHVHQWO\VXEPLWWLQJDQother request (including an application for change in method of accounting) involving the same
RUDVLPLODULVVXHRU
HWKHWD[SD\HURUDUHODWHGSDUW\KDGRUKDVVFKHGXOHGDSUHVXEPLVVLRQFRQIHUHQFHLQYROYLQJ
the same or a similar issue.
,IWKHVWDWHPHQWLVDI¿UPDWLYHIRUDEFGRUHRIWKLVVHFWLRQWKHVWDWHPHQW
must give the date the request was submitted, the date the request was withdrawn or ruled on, if
DSSOLFDEOHDQGRWKHUGHWDLOVRIWKH6HUYLFH¶VFRQVLGHUDWLRQRIWKHLVVXH
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
HVWDWHWD[WUHDW\WKHUHTXHVWPXVWVWDWHZKHWKHU²
DWKHWD[DXWKRULW\RIWKHWUHDW\MXULVGLFWLRQKDVLVVXHGDUXOLQJRQWKHVDPHRUVLPLODULVVXH
IRUWKHWD[SD\HUDUHODWHGSDUW\ZLWKLQWKHPHDQLQJRI†RU†ERUDPHPEHURIDQ
DI¿OLDWHGJURXSRIZKLFKWKHWD[SD\HULVDOVRDPHPEHUZLWKLQWKHPHDQLQJRI†RUIRUDQ\
SUHGHFHVVRU
EWKHVDPHRUVLPLODULVVXHIRUWKHWD[SD\HUDUHODWHGSDUW\RUDQ\SUHGHFHVVRULVEHLQJH[DPLQHGRUKDVEHHQVHWWOHGE\WKHWD[DXWKRULW\RIWKHWUHDW\MXULVGLFWLRQRULVRWKHUZLVHWKHVXEMHFWRI
DFORVLQJDJUHHPHQWLQWKDWMXULVGLFWLRQDQG
FWKHVDPHRUVLPLODULVVXHIRUWKHWD[SD\HUDUHODWHGSDUW\RUDQ\SUHGHFHVVRULVEHLQJFRQsidered by the competent authority of the treaty jurisdiction.

Interpretation of a
transaction involving a
party in a foreign country

(7) Statement regarding involvement of a transactional party located in a foreign country.
,IWKHUHTXHVWLQYROYHVDWUDQVDFWLRQEHWZHHQDWD[SD\HUDQGDUHODWHGSDUW\DQGHLWKHUWKHWD[SD\HU
or the related party is located in a foreign country, the request must state whether the ruling potentially relates to any one of these categories —
D 3UHIHUHQWLDO 5HJLPH GH¿QHG DV RQH WKDW PHHWV WKH IROORZLQJ WKUHH UHTXLUHPHQWV  WKH
UHJLPH UHODWHV WR EXVLQHVV WD[DWLRQ RI LQFRPH IURP JHRJUDSKLFDOO\ PRELOH DFWLYLWLHV VXFK DV
¿QDQFLDODQGRWKHUVHUYLFHDFWLYLWLHVLQFOXGLQJWKHSURYLVLRQRILQWDQJLEOHVWKHUHJLPHRIIHUV
DIRUPRIWD[SUHIHUHQFHVXFKDVDUHGXFWLRQLQWKHUDWHRIWD[RUWD[EDVHFRPSDUHGWRJHQHUDO
SULQFLSOHVRI86WD[DWLRQDQGWKHUHJLPHLPSRVHVQRRUORZHIIHFWLYHWD[UDWHVRQLQFRPH
IURPJHRJUDSKLFDOO\PRELOH¿QDQFLDODQGRWKHUVHUYLFHDFWLYLWLHV

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(b) Transfer Pricing, meaning the letter ruling covers transfer pricing or the application of transIHUSULFLQJSULQFLSOHVXQGHUVHFWLRQDQGWKHUHJXODWLRQVWKHUHXQGHU
(c) Downward Adjustment, meaning the letter ruling provides for a downward adjustment to the
WD[SD\HU¶VWD[DEOHSUR¿WWKDWLVQRWGLUHFWO\UHÀHFWHGLQLWV¿QDQFLDODFFRXQWV([DPSOHVLQFOXGH
H[FHVVSUR¿WVUXOLQJVRULQIRUPDOFDSLWDOUXOLQJVWKDWSURYLGHDQDGMXVWPHQWWKDWUHGXFHVWD[DEOH
SUR¿WV
G7UHDW\3HUPDQHQW(VWDEOLVKPHQWPHDQLQJWKHOHWWHUUXOLQJGHWHUPLQHVWKHH[LVWHQFHRUDEVHQFHRIDSHUPDQHQWHVWDEOLVKPHQWXQGHUDQLQFRPHWD[WUHDW\RUSURYLGHVKRZPXFKSUR¿WZLOO
EHDWWULEXWHGWRDSHUPDQHQWHVWDEOLVKPHQW
H5HODWHG3DUW\&RQGXLWPHDQLQJWKHOHWWHUUXOLQJFRYHUVWKHFURVVERUGHUÀRZRIIXQGVRULQcome through a U.S. entity that is a conduit under common law principles or Treas. Reg. § 1.881ZKHWKHUWKRVHIXQGVRULQFRPHÀRZWRDQRWKHUFRXQWU\GLUHFWO\RULQGLUHFWO\
Letter from Bureau of
Indian Affairs relating
to certain letter ruling
requests

(8) 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
JRYHUQPHQWVWDWXVRUVWDWXVDVDSROLWLFDOVXEGLYLVLRQRIDQ,QGLDQWULEDOJRYHUQPHQWWKHWD[SD\HU
must submit with the letter ruling request a letter from the Department of the Interior, Bureau of
,QGLDQ$IIDLUV%,$YHULI\LQJWKDWWKHWULEHLVUHFRJQL]HGE\%,$DVDQ,QGLDQWULEHDQGWKDWWKH
WULEDOJRYHUQPHQWH[HUFLVHVJRYHUQPHQWDOIXQFWLRQVRUWKDWWKHSROLWLFDOVXEGLYLVLRQRIWKH,QGLDQ
tribal government has been delegated substantial governmental functions. A letter ruling request
that does not contain this letter from BIA cannot be resolved until the Service obtains a letter from
%,$UHJDUGLQJWKHWULEH¶VVWDWXV
7KHWD[SD\HUVKRXOGVHQGDUHTXHVWWRYHULI\WULEDOVWDWXVWRWKHIROORZLQJDGGUHVV
Branch of General Indian Legal Activity
Division of Indian Affairs
2I¿FHRIWKH6ROLFLWRU
U.S. Department of the Interior
1849 C Street, NW
Washington, DC 20240

Statement of authorities
supporting taxpayer’s views

(9) Statement of supporting authorities.,IWKHWD[SD\HUDGYRFDWHVDSDUWLFXODUFRQFOXVLRQWKH
WD[SD\HUPXVWLQFOXGHDQH[SODQDWLRQRIWKHJURXQGVIRUWKDWFRQFOXVLRQDQGWKHUHOHYDQWDXWKRULWLHVWRVXSSRUWLW(YHQLIWKHWD[SD\HULVQRWDGYRFDWLQJDSDUWLFXODUWD[WUHDWPHQWRIDSURSRVHG
WUDQVDFWLRQWKHWD[SD\HUPXVWIXUQLVKYLHZVRQWKHWD[UHVXOWVRIWKHSURSRVHGWUDQVDFWLRQDQGD
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

Bulletin No. 2021–1

(10) 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
WKHUHDUHVLJQL¿FDQWFRQWUDU\DXWKRULWLHVLWLVXVXDOO\KHOSIXOWRGLVFXVVWKHPLQDSUHVXEPLVVLRQ
conference prior to submitting the ruling request. See section 10.07 of this revenue procedure
UHJDUGLQJ SUHVXEPLVVLRQ FRQIHUHQFHV7KH WD[SD\HU LV VWURQJO\ HQFRXUDJHG WR LQIRUP WKH 6HUvice about, and discuss the implications of, any authority believed to be contrary to the position

27

January 4, 2021

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HLWKHUFRQWUDU\DXWKRULWLHVRUDVWDWHPHQWWKDWQRQHH[LVWWKH6HUYLFHLQFRPSOH[FDVHVRUWKRVH
SUHVHQWLQJGLI¿FXOWRUQRYHOLVVXHVPD\UHTXHVWVXEPLVVLRQRIFRQWUDU\DXWKRULWLHVRUDVWDWHPHQW
WKDWQRQHH[LVW)DLOXUHWRFRPSO\ZLWKWKLVUHTXHVWPD\UHVXOWLQWKH6HUYLFH¶VUHIXVDOWRLVVXHD
letter ruling or determination letter.
7KHWD[SD\HU¶VLGHQWL¿FDWLRQRIDQGGLVFXVVLRQRIFRQWUDU\DXWKRULWLHVZLOOJHQHUDOO\HQDEOH6HUYLFHSHUVRQQHOWRPRUHTXLFNO\XQGHUVWDQGWKHLVVXHDQGUHOHYDQWDXWKRULWLHV+DYLQJWKLVLQIRUPDWLRQVKRXOGPDNHUHVHDUFKPRUHHI¿FLHQWDQGOHDGWRHDUOLHUDFWLRQE\WKH6HUYLFH,IWKHWD[SD\HU
GRHVQRWGLVFORVHDQGGLVWLQJXLVKVLJQL¿FDQWFRQWUDU\DXWKRULWLHVWKH6HUYLFHPD\QHHGWRUHTXHVW
additional information, which will delay action on the request.
Statement identifying
pending legislation

(11) Statement identifying pending legislation.:KHQ¿OLQJWKHUHTXHVWWKHWD[SD\HUPXVW
LGHQWLI\DQ\SHQGLQJOHJLVODWLRQWKDWPD\DIIHFWWKHSURSRVHGWUDQVDFWLRQ,QDGGLWLRQWKHWD[SD\HU
PXVWQRWLI\WKH6HUYLFHLIDQ\VXFKOHJLVODWLRQLVLQWURGXFHGDIWHUWKHUHTXHVWLV¿OHGEXWEHIRUHD
letter ruling or determination letter is issued.

Deletion statement required
by § 6110

(12) Statement identifying information to be deleted from the public inspection copy of
letter ruling or determination letter.7KHWH[WRIOHWWHUUXOLQJVDQGGHWHUPLQDWLRQOHWWHUVLVRSHQ
WRSXEOLFLQVSHFWLRQXQGHU†7KH6HUYLFHPDNHVGHOHWLRQVIURPWKHWH[WEHIRUHLWLVPDGH
DYDLODEOHIRULQVSHFWLRQ7RKHOSWKH6HUYLFHPDNHWKHGHOHWLRQVUHTXLUHGE\†FDUHTXHVW
for a letter ruling or determination letter must be accompanied by a statement indicating the deOHWLRQVGHVLUHGH[FHSWZKHUHDOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHULVRSHQWRSXEOLFLQVSHFWLRQ
under § 6104. If the deletion statement is not submitted with the request, the Service will notify
WKHWD[SD\HUWKDWWKHUHTXHVWZLOOEHFORVHGLIWKH6HUYLFHGRHVQRWUHFHLYHWKHGHOHWLRQVWDWHPHQW
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 memoranGDDQGUHODWHGEDFNJURXQG¿OHGRFXPHQWVGHDOLQJZLWKWKHIROORZLQJPDWWHUVFRYHUHGE\†
are not subject to § 6110 disclosure provisions—
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†FRUGRUQRWLFHRIVWDWXVDVDSROLWLFDORUJDQL]DWLRQXQGHU†WRJHWKHUZLWKDQ\SDSHUV
VXEPLWWHGLQVXSSRUWRIVXFKDSSOLFDWLRQRUQRWLFH
LL$QDSSOLFDWLRQIRUH[HPSWLRQXQGHU†DZLWKUHVSHFWWRWKHTXDOL¿FDWLRQRIDSHQVLRQ
SUR¿W VKDULQJ RU VWRFN ERQXV SODQ RU DQ LQGLYLGXDO UHWLUHPHQW DFFRXQW GHVFULEHG LQ †  RU
†$RUDQ\DSSOLFDWLRQIRUH[HPSWLRQXQGHU†DE\DQRUJDQL]DWLRQIRUPLQJSDUWRIVXFK
DSODQRUDFFRXQW
LLL$Q\GRFXPHQWLVVXHGE\WKH,QWHUQDO5HYHQXH6HUYLFHLQZKLFKWKHTXDOL¿FDWLRQRUH[HPSW
VWDWXVRIDSODQRUDFFRXQWLVJUDQWHGGHQLHGRUUHYRNHGRUWKHSRUWLRQRIDQ\GRFXPHQWLQZKLFK
WHFKQLFDODGYLFHZLWKUHVSHFWWKHUHWRLVJLYHQ
LY$Q\DSSOLFDWLRQ¿OHGDQGDQ\GRFXPHQWLVVXHGE\WKH,QWHUQDO5HYHQXH6HUYLFHZLWKUHVSHFWWRWKHTXDOL¿FDWLRQRUVWDWXVRIPDVWHUDQGSURWRW\SHUHWLUHPHQWSODQVDQG

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Bulletin No. 2021–1

(v) The portion of any document issued by the Internal Revenue Service with respect to the
TXDOL¿FDWLRQRUH[HPSWVWDWXVRIDUHWLUHPHQWSODQRUDFFRXQWRIDSURSRVHGWUDQVDFWLRQE\VXFK
plan or account.
(a) Format of deletion statement.$WD[SD\HUZKRZDQWVRQO\QDPHVDGGUHVVHVDQGLGHQWLI\LQJQXPEHUVWREHGHOHWHGVKRXOGVWDWHWKLVLQWKHGHOHWLRQVWDWHPHQW,IWKHWD[SD\HUZDQWV
more information deleted, the deletion statement must be accompanied by a copy of the request
DQGVXSSRUWLQJGRFXPHQWVRQZKLFKWKHWD[SD\HUVKRXOGEUDFNHWWKHPDWHULDOWREHGHOHWHG7KH
deletion statement must include the statutory basis under § 6110(c) for each proposed deletion.
,IWKHWD[SD\HUGHFLGHVWRDVNIRUDGGLWLRQDOGHOHWLRQVEHIRUHWKHOHWWHUUXOLQJRUGHWHUPLQDWLRQ
OHWWHULVLVVXHGWKHWD[SD\HUPD\VXEPLWDGGLWLRQDOGHOHWLRQVWDWHPHQWV
(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.
(c) Signature.7KH GHOHWLRQ VWDWHPHQW PXVW EH VLJQHG DQG GDWHG E\ WKH WD[SD\HU RU WKH WD[SD\HU¶V DXWKRUL]HG UHSUHVHQWDWLYH See section 7.01(13) of this revenue procedure for signature
requirements.
(d) Additional information.7KHWD[SD\HUVKRXOGIROORZWKHVDPHSURFHGXUHVRIWKLVVHFWLRQ
7.01(12) 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
LIWKHWD[SD\HU¶VLQLWLDOGHOHWLRQVWDWHPHQWUHTXHVWVWKDWRQO\QDPHVDGGUHVVHVDQGLGHQWLI\LQJ
QXPEHUVDUHWREHGHOHWHGDQGWKHWD[SD\HUZDQWV RQO\WKHVDPHLQIRUPDWLRQGHOHWHGIURPWKH
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 communicaWLRQVXQGHU†GWKHWD[SD\HUPD\SURWHVWWKHGLVFORVXUHRIFHUWDLQLQIRUPDWLRQLQWKHOHWWHU
UXOLQJRUGHWHUPLQDWLRQOHWWHU7KHWD[SD\HUPXVWVHQGDZULWWHQVWDWHPHQWWRWKH6HUYLFHRI¿FH
indicated on the notice of intention to disclose, within 20 calendar days of the date the notice of
LQWHQWLRQWRGLVFORVHLVPDLOHGWRWKHWD[SD\HU7KHVWDWHPHQWPXVWLGHQWLI\WKRVHGHOHWLRQVWKDWWKH
6HUYLFHKDVQRWPDGHDQGWKDWWKHWD[SD\HUEHOLHYHVVKRXOGKDYHEHHQPDGH7KHWD[SD\HUPXVW
DOVRVXEPLWDFRS\RIWKHYHUVLRQRIWKHOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUDQGEUDFNHWWKHSURposed deletions that have not been made by the Service. Generally, the Service will not consider
GHOHWLQJDQ\PDWHULDOWKDWWKHWD[SD\HUGLGQRWSURSRVHWREHGHOHWHGEHIRUHWKHOHWWHUUXOLQJRU
determination letter was issued.
Within 20 calendar days after the Service receives the response to the notice under § 6110(f)
WKH6HUYLFHZLOOPDLOWRWKHWD[SD\HULWV¿QDODGPLQLVWUDWLYHFRQFOXVLRQUHJDUGLQJWKHGHOHWLRQV
WREHPDGH7KHWD[SD\HUGRHVQRWKDYHWKHULJKWWRDFRQIHUHQFHWRUHVROYHDQ\GLVDJUHHPHQWV
FRQFHUQLQJPDWHULDOWREHGHOHWHGIURPWKHWH[WRIWKHOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHU7KHVH
PDWWHUVPD\KRZHYHUEHWDNHQXSDWDQ\FRQIHUHQFHWKDWLVRWKHUZLVHVFKHGXOHGUHJDUGLQJWKH
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
WD[SD\HUPD\VHQGDZULWWHQUHTXHVWIRUGHOD\RISXEOLFLQVSHFWLRQXQGHUHLWKHU†JRU
7KHUHTXHVWIRUGHOD\PXVWEHVHQWWRWKH6HUYLFHRI¿FHLQGLFDWHGRQWKHQRWLFHRILQWHQWLRQ

Bulletin No. 2021–1

29

January 4, 2021

WRGLVFORVH$UHTXHVWIRUGHOD\XQGHU†JPXVWFRQWDLQWKHGDWHRQZKLFKLWLVH[SHFWHG
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

(13) Signature by taxpayer or authorized representative. The request for a letter ruling or
GHWHUPLQDWLRQOHWWHUPXVWEHVLJQHGDQGGDWHGE\WKHWD[SD\HURUWKHWD[SD\HU¶VDXWKRUL]HGUHSUHsentative.
(a) Paper submissions. The original of a request for a letter ruling or determination letter
VXEPLWWHGRQSDSHUVKRXOGJHQHUDOO\LQFOXGHDZHWLQNVLJQDWXUH,ILWLVQRWSRVVLEOHWRSK\VLFDOO\
sign the request, the Service will accept an image of a signature or digital signature transmitted
separately according to the electronic submission procedures for such a request.
(b) Electronic submissions. A request for a letter ruling or determination letter submitted electronically must include an image of a signature (scanned or photographed) or a digital signature
WKDWXVHVHQFU\SWLRQWHFKQLTXHVWRSURYLGHSURRIRIRULJLQDODQGXQPRGL¿HGGRFXPHQWDWLRQ7KH
6HUYLFHZLOODFFHSWHOHFWURQLFVLJQDWXUHVLQRQHRIWKHIROORZLQJIRUPDWVWLIIMSJMSHJSGI0LFURVRIW2I¿FHVXLWHRU=LS
See section 7.04 of this revenue procedure for submission procedures.

Authorized representatives

(14) Authorized representatives.
(a) 7RVLJQWKHUHTXHVWRUWRDSSHDUEHIRUHWKH6HUYLFHLQFRQQHFWLRQZLWKWKHUHTXHVWWKHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHPXVWEHIRUUXOHVRQZKRPD\SUDFWLFHEHIRUHWKH6HUYLFHsee
7UHDVXU\'HSDUWPHQW&LUFXODU1R&)5SDUW
(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
VXVSHQVLRQRUGLVEDUPHQWIURPSUDFWLFHEHIRUHWKH6HUYLFH+HRUVKHPXVW¿OHDZULWWHQGHFODUDWLRQZLWKWKH6HUYLFHVKRZLQJFXUUHQWTXDOL¿FDWLRQDVDQDWWRUQH\DQGFXUUHQWDXWKRUL]DWLRQWR
UHSUHVHQWWKHWD[SD\HU
$ FHUWL¿HG SXEOLF DFFRXQWDQW ZKR LV GXO\ TXDOL¿HG WR SUDFWLFH LQ DQ\ VWDWH SRVVHVVLRQ
territory, commonwealth, or the District of Columbia and who is not currently under suspension
RUGLVEDUPHQWIURPSUDFWLFHEHIRUHWKH6HUYLFH+HRUVKHPXVW¿OHDZULWWHQGHFODUDWLRQZLWKWKH
6HUYLFHVKRZLQJFXUUHQWTXDOL¿FDWLRQDVDFHUWL¿HGSXEOLFDFFRXQWDQWDQGFXUUHQWDXWKRUL]DWLRQWR
UHSUHVHQWWKHWD[SD\HU
(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.
+HRUVKHPXVW¿OHDZULWWHQGHFODUDWLRQZLWKWKH6HUYLFHVKRZLQJFXUUHQWHQUROOPHQWDQGDXWKRUL]DWLRQWRUHSUHVHQWWKHWD[SD\HU7KHHQUROOPHQWQXPEHUPXVWEHLQFOXGHGLQWKHGHFODUDWLRQ
(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 suspenVLRQRUGLVEDUPHQWIURPSUDFWLFHEHIRUHWKH6HUYLFH+HRUVKHPXVW¿OHDZULWWHQGHFODUDWLRQZLWK
WKH6HUYLFHVKRZLQJFXUUHQWTXDOL¿FDWLRQDVDQHQUROOHGDFWXDU\DQGFXUUHQWDXWKRUL]DWLRQWRUHSUHVHQWWKHWD[SD\HU3UDFWLFHEHIRUHWKH6HUYLFHDVDQHQUROOHGDFWXDU\LVOLPLWHGWRUHSUHVHQWDWLRQ

January 4, 2021

30

Bulletin No. 2021–1

with respect to issues involving §§ 401, 403(a), 404, 405, 412, 413, 414, 419, 419A, 420, 4971,
GHDQGEIRUPHU†DQG
86&†
(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
VKHPXVW¿OHDZULWWHQGHFODUDWLRQDVDQHQUROOHGUHWLUHPHQWSODQDJHQWDQGFXUUHQWDXWKRUL]DWLRQWR
UHSUHVHQWWKHWD[SD\HU3UDFWLFHEHIRUHWKH6HUYLFHDVDQHQUROOHGUHWLUHPHQWSODQDJHQWLVOLPLWHG
WRUHSUHVHQWDWLRQZLWKUHVSHFWWRLVVXHVLQYROYLQJWKHIROORZLQJSURJUDPV(PSOR\HH3ODQV'HWHUPLQDWLRQ/HWWHUSURJUDP(PSOR\HH3ODQV&RPSOLDQFH5HVROXWLRQ6\VWHPDQG(PSOR\HH3ODQV
Pre-approved program. Enrolled retirement plan agents also are generally permitted to represent
WD[SD\HUVZLWKUHVSHFWWR,56IRUPVXQGHUWKHDQGVHULHVZKLFKDUH¿OHGE\UHWLUHPHQW
SODQVDQGSODQVVSRQVRUVEXWQRWZLWKUHVSHFWWRDFWXDULDOIRUPVDQGVFKHGXOHVRU
(6) Any other person, including a foreign representative, who has received a “Letter of AuWKRUL]DWLRQ´IURPWKH'LUHFWRURIWKH2I¿FHRI3URIHVVLRQDO5HVSRQVLELOLW\XQGHUVHFWLRQG
RI7UHDVXU\'HSDUWPHQW&LUFXODU1R$SHUVRQPD\PDNHDZULWWHQUHTXHVWIRUD³/HWWHURI
$XWKRUL]DWLRQ´WR2I¿FHRI3URIHVVLRQDO5HVSRQVLELOLW\6(235,QWHUQDO5HYHQXH6HUYLFH
&RQVWLWXWLRQ$YH1::DVKLQJWRQ'&6HFWLRQGRI&LUFXODU1RDXWKRUL]HV
the Commissioner to allow an individual who is not otherwise eligible to practice before the Service to represent another person in a particular matter.
E$UHJXODUIXOOWLPHHPSOR\HHUHSUHVHQWLQJKLVRUKHUHPSOR\HUDJHQHUDOSDUWQHUUHSUHVHQWLQJKLVRUKHUSDUWQHUVKLSDERQD¿GHRI¿FHUUHSUHVHQWLQJKLVRUKHUFRUSRUDWLRQDVVRFLDWLRQRU
RUJDQL]HG JURXS D WUXVWHH UHFHLYHU JXDUGLDQ SHUVRQDO UHSUHVHQWDWLYH DGPLQLVWUDWRU H[HFXWRU
RU UHJXODU IXOOWLPH HPSOR\HH UHSUHVHQWLQJ D WUXVW UHFHLYHUVKLS JXDUGLDQVKLS RU HVWDWH RU DQ
individual representing an immediate family member may sign the request or appear before the
6HUYLFHLQFRQQHFWLRQZLWKWKHUHTXHVWLIWKHLQGLYLGXDOSURYLGHVFXUUHQWDXWKRUL]DWLRQWRUHSUHVHQW
WKHWD[SD\HUSee section 7.01(15) of this revenue procedure.
$WD[SD\HUPD\EHUHTXLUHGWR¿OHD)RUPTax Information Authorization, for certain emSOR\HHVQRWDXWKRUL]HGWRUHSUHVHQWWKHWD[SD\HUWRUHFHLYHWD[SD\HULQIRUPDWLRQIURPWKH6HUYLFH
F7D[UHWXUQSUHSDUHUVWKDWDUHQRWGHVFULEHGLQVXEVHFWLRQVDDQGERIWKLVVHFWLRQPD\QRW
VLJQWKHUHTXHVWDSSHDUEHIRUHWKH6HUYLFHRUUHSUHVHQWDWD[SD\HULQFRQQHFWLRQZLWKDUHTXHVW
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
VHFWLRQLVQRWDXWKRUL]HGWRSUDFWLFHEHIRUHWKH6HUYLFHZLWKLQWKH8QLWHG6WDWHVDQGPXVWZLWKGUDZIURPUHSUHVHQWLQJDWD[SD\HULQDUHTXHVWIRUDOHWWHUUXOLQJRUDGHWHUPLQDWLRQOHWWHU,QWKLV
situation, the nonresident alien or foreign entity must submit the request for a letter ruling or a
GHWHUPLQDWLRQOHWWHURQWKHLQGLYLGXDO¶VRUWKHHQWLW\¶VRZQEHKDOIRUWKURXJKDSHUVRQUHIHUUHGWR
in subsections (a) and (b) of this section.
Power of attorney
and declaration of
representative

Bulletin No. 2021–1

(15) Power of attorney and declaration of representative. Form 2848, Power of Attorney
and Declaration of RepresentativeVKRXOGEHXVHGWRSURYLGHWKHUHSUHVHQWDWLYH¶VDXWKRULW\3DUW
I of Form 2848, Power of AttorneyDQGWKHUHSUHVHQWDWLYH¶VTXDOL¿FDWLRQ3DUW,,RI)RUP
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 or electronic signature is not permitted, but a submission may include a copy or scanned version of the Form 2848 as long as its authenticity is not

31

January 4, 2021

reasonably disputed. For additional information regarding the power of attorney form, see section
7.02(2) of this revenue procedure.
7KHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHZKHWKHURUQRWHQUROOHGPXVWFRPSO\ZLWK7UHDVXU\
Department Circular No. 230, which provides the rules for practice before the Service. In sitXDWLRQVZKHUHWKH6HUYLFHEHOLHYHVWKDWWKHWD[SD\HU¶VUHSUHVHQWDWLYHLVQRWLQFRPSOLDQFHZLWK
&LUFXODUWKH6HUYLFHZLOOEULQJWKHPDWWHUWRWKHDWWHQWLRQRIWKH2I¿FHRI3URIHVVLRQDO5Hsponsibility.
Penalties of perjury
statement

(16) 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 folORZLQJGHFODUDWLRQ“Under penalties of perjury, I declare that I have examined [Insert, as
DSSURSULDWHWKLVUHTXHVWRUWKLVPRGL¿FDWLRQWRWKHUHTXHVW@LQFOXGLQJDFFRPSDQ\LQJGRFuments, and, to the best of my knowledge and belief, [Insert, as appropriate: the request or
WKHPRGL¿FDWLRQ@FRQWDLQVDOOWKHUHOHYDQWIDFWVUHODWLQJWRWKHUHTXHVWDQGVXFKIDFWVDUH
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.7KHGHFODUDWLRQPXVWEHVLJQHGDQGGDWHGE\WKHWD[SD\HUQRWWKH
WD[SD\HU¶VUHSUHVHQWDWLYHLQDPDQQHUFRQVLVWHQWZLWKVHFWLRQRIWKLVUHYHQXHSURFHGXUH
7KHSHUVRQZKRVLJQVIRUDFRUSRUDWHWD[SD\HUPXVWEHDQRI¿FHURIWKHFRUSRUDWHWD[SD\HUZKR
KDVSHUVRQDONQRZOHGJHRIWKHIDFWVDQGZKRVHGXWLHVDUHQRWOLPLWHGWRREWDLQLQJDOHWWHUUXOLQJRU
GHWHUPLQDWLRQOHWWHUIURPWKH6HUYLFH,IWKHFRUSRUDWHWD[SD\HULVDPHPEHURIDQDI¿OLDWHGJURXS
¿OLQJFRQVROLGDWHGUHWXUQVDSHQDOWLHVRISHUMXU\VWDWHPHQWPXVWDOVREHVLJQHGDQGVXEPLWWHGE\
DQRI¿FHURIWKHFRPPRQSDUHQWRIWKHJURXS
The person signing for a trust, a state law partnership, or a limited liability company must be,
UHVSHFWLYHO\DWUXVWHHJHQHUDOSDUWQHURUPHPEHUPDQDJHUZKRKDVSHUVRQDONQRZOHGJHRIWKH
facts.

Sample format for a letter
ruling request

(17) Sample format for a letter ruling request.7RDVVLVWDWD[SD\HURUWKHWD[SD\HU¶VUHSUHsentative in preparing a letter ruling request, a sample format for a letter ruling request is provided
LQ$SSHQGL[%RIWKLVUHYHQXHSURFHGXUH7KLVIRUPDWLVQRWUHTXLUHGWREHXVHG

Checklist

(18) Checklist for letter ruling requests.$Q$VVRFLDWHRI¿FHZLOOEHDEOHWRUHVSRQGPRUH
TXLFNO\WRDWD[SD\HU¶VOHWWHUUXOLQJUHTXHVWLIWKHUHTXHVWLVFDUHIXOO\SUHSDUHGDQGFRPSOHWH7KH
FKHFNOLVWLQ$SSHQGL[&RIWKLVUHYHQXHSURFHGXUHLVGHVLJQHGWRDVVLVWWD[SD\HUVLQSUHSDULQJD
request by reminding them of the essential information and documents to be furnished with the
UHTXHVW7KHFKHFNOLVWLQ$SSHQGL[&PXVWEHFRPSOHWHGWRWKHH[WHQWUHTXLUHGE\WKHLQVWUXFWLRQV
LQWKHFKHFNOLVWVLJQHGDQGGDWHGE\WKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHDQGSODFHGRQ
WRSRIWKHOHWWHUUXOLQJUHTXHVW,IWKHFKHFNOLVWLQ$SSHQGL[&LVQRWUHFHLYHGDEUDQFKUHSUHVHQWDWLYHZLOODVNWKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHWRVXEPLWWKHFKHFNOLVWWKLVPD\GHOD\
action on the letter ruling request.

January 4, 2021

32

Bulletin No. 2021–1

)RUOHWWHUUXOLQJUHTXHVWVRQFHUWDLQPDWWHUVVSHFL¿FFKHFNOLVWVVXSSOHPHQWWKHFKHFNOLVWLQ$SSHQGL[&7KHVHFKHFNOLVWVDUHLQ$SSHQGL['$SSHQGL[(RUDUHOLVWHGLQVHFWLRQRI$SSHQGL[
G of this revenue procedure and must also be completed and placed on top of the letter ruling
UHTXHVWDORQJZLWKWKHFKHFNOLVWLQ$SSHQGL[&
7D[SD\HUVFDQREWDLQFRSLHVRIWKHFKHFNOLVWVE\DFFHVVLQJWKLVUHYHQXHSURFHGXUHLQ,QWHUQDO
5HYHQXH%XOOHWLQDYDLODEOHDWZZZLUVJRYLUE$FRS\RIWKLVFKHFNOLVWPD\EHXVHG
Additional procedural
information required with
request
Multiple issues

.02

(1) To request separate letter rulings for multiple issues in a single situation. If more than
RQHLVVXHLVSUHVHQWHGLQDUHTXHVWIRUDOHWWHUUXOLQJWKH$VVRFLDWHRI¿FHJHQHUDOO\ZLOOLVVXHD
VLQJOHOHWWHUUXOLQJFRYHULQJDOOWKHLVVXHV,IWKHWD[SD\HUUHTXHVWVVHSDUDWHOHWWHUUXOLQJVRQDQ\
RIWKHLVVXHVEHFDXVHIRUH[DPSOHRQHOHWWHUUXOLQJLVQHHGHGVRRQHUWKDQDQRWKHUWKH$VVRFLDWH
RI¿FHXVXDOO\ZLOOFRPSO\ZLWKWKHUHTXHVWXQOHVVGRLQJVRLVQRWIHDVLEOHRUQRWLQWKHEHVWLQWHUHVW
RIWKH6HUYLFH$WD[SD\HUZKRZDQWVVHSDUDWHOHWWHUUXOLQJVRQPXOWLSOHLVVXHVVKRXOGPDNHWKLV
clear in the request and if submitting the request on paper, submit the original and at least two
copies of the request, with one additional copy for each additional separate letter ruling requested.
See section 15.06(3) of this revenue procedure regarding whether a single user fee will be charged.
,QLVVXLQJHDFKOHWWHUUXOLQJWKH$VVRFLDWHRI¿FHZLOOVWDWHWKDWLWKDVLVVXHGVHSDUDWHOHWWHUUXOings 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,
the Service has the discretion to determine the form in which it will provide the letter ruling or
GHWHUPLQDWLRQOHWWHUWRWKHWD[SD\HUEXWZLOOJHQHUDOO\FRPSO\ZLWKDWD[SD\HU¶VUHTXHVWIRUDSDUticular form. See section 7.02(5) of this revenue procedure. If providing the ruling on paper, the
6HUYLFHZLOOVHQGWKHRULJLQDOWRWKHWD[SD\HUQRWWKHWD[SD\HU¶VUHSUHVHQWDWLYH
$WWKHWD[SD\HU¶VUHTXHVWWKH6HUYLFHZLOOVHQGRQHFRS\RIWKHOHWWHUUXOLQJRUGHWHUPLQDWLRQ
OHWWHUWRXSWRWZRDXWKRUL]HGUHSUHVHQWDWLYHV$WWKHGLVFUHWLRQRIWKH6HUYLFHWKH6HUYLFHPD\
SURYLGHDFRS\RIWKHOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUWRXSWRWZRDXWKRUL]HGUHSUHVHQWDWLYHV
HYHQWKRXJKWKHWD[SD\HUGLGQRWUHTXHVWWKDWWKH6HUYLFHVHQGDFRS\RIQRWLFHVDQGFRPPXQLFDWLRQVWRWKHWD[SD\HU¶VUHSUHVHQWDWLYHV7D[SD\HUVWKDWXVH)RUPPower of Attorney and
Declaration of Representative, to designate representatives, may request that copies of notices
DQGFRPPXQLFDWLRQVEHVHQWWRWKHUHSUHVHQWDWLYHVOLVWHGDW/LQHE\FKHFNLQJWKHFRUUHVSRQGLQJ
ER[RQ/LQH7D[SD\HUVPD\XVH/LQHRI)RUPWRDGYLVHWKH6HUYLFHWKDWDFRS\RIWKH
OHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUVKRXOGQRWEHVHQWWRWKHWD[SD\HU¶VUHSUHVHQWDWLYHV,IQR
ER[LVFKHFNHGRQ/LQHDQGWKHWD[SD\HUGRHVQRWLQGLFDWHRWKHUZLVHRQ/LQHWKH6HUYLFHPD\
LQLWVGLVFUHWLRQSURYLGHDFRS\RIWKHOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUWRXSWRWZRDXWKRUL]HG
representatives.

“Two-part” letter ruling
requests

Bulletin No. 2021–1

(3) To request a particular conclusion on a proposed transaction.$WD[SD\HUZKRUHTXHVWV
DSDUWLFXODUFRQFOXVLRQRQDSURSRVHGWUDQVDFWLRQPD\PDNHWKHUHTXHVWIRUDOHWWHUUXOLQJLQWZR
SDUWV7KLVW\SHRIUHTXHVWLVUHIHUUHGWRDVD³WZRSDUW´OHWWHUUXOLQJUHTXHVW7KH¿UVWSDUWPXVW
include the complete statement of facts and related documents described in section 7.01 of this
UHYHQXHSURFHGXUH7KHVHFRQGSDUWPXVWLQFOXGHDVXPPDU\VWDWHPHQWRIWKHIDFWVWKHWD[SD\HU
believes to be controlling in reaching the conclusion requested.

33

January 4, 2021

,IWKH$VVRFLDWHRI¿FHDFFHSWVWKHWD[SD\HU¶VVWDWHPHQWRIFRQWUROOLQJIDFWVLWZLOOEDVHLWVOHWWHU
ruling on these facts. Ordinarily, this statement will be incorporated into the letter ruling. The AsVRFLDWHRI¿FHUHVHUYHVWKHULJKWWRUXOHRQWKHEDVLVRIDPRUHFRPSOHWHVWDWHPHQWRIWKHIDFWVDQG
WRVHHNPRUHLQIRUPDWLRQLQGHYHORSLQJWKHIDFWVDQGUHVWDWLQJWKHP
$WD[SD\HUZKRFKRRVHVWKLVWZRSDUWSURFHGXUHKDVDOOWKHULJKWVDQGUHVSRQVLELOLWLHVSURYLGHG
in this revenue procedure.
7D[SD\HUVPD\QRWXVHWKHWZRSDUWSURFHGXUHLILWLVLQFRQVLVWHQWZLWKRWKHUSURFHGXUHVVXFKDV
those dealing with requests for permission to change accounting methods or periods, applications
IRUUHFRJQLWLRQRIH[HPSWVWDWXVXQGHU†DRU†RUUHTXHVWVIRUUXOLQJVRQHPSOR\PHQW
WD[VWDWXV
$IWHUWKH$VVRFLDWHRI¿FHKDVUHVROYHGWKHLVVXHVSUHVHQWHGE\DOHWWHUUXOLQJUHTXHVWWKH$VVRFLDWHRI¿FHUHSUHVHQWDWLYHPD\UHTXHVWWKDWWKHWD[SD\HUVXEPLWDSURSRVHGGUDIWRIWKHOHWWHUUXOLQJ
WRH[SHGLWHWKHLVVXDQFHRIWKHUXOLQJSee section 8.07 of this revenue procedure.
Expedited handling

(4) To request expedited handling. The Service ordinarily processes requests for letter rulings
DQGGHWHUPLQDWLRQOHWWHUVLQRUGHURIWKHGDWHUHFHLYHG([SHGLWHGKDQGOLQJPHDQVWKDWDUHTXHVW
LVSURFHVVHGDKHDGRIUHTXHVWVUHFHLYHGEHIRUHLW([SHGLWHGKDQGOLQJLVJUDQWHGRQO\LQUDUHDQG
XQXVXDOFDVHVERWKRXWRIIDLUQHVVWRRWKHUWD[SD\HUVDQGEHFDXVHWKH6HUYLFHVHHNVWRSURFHVVDOO
UHTXHVWVDVH[SHGLWLRXVO\DVSRVVLEOHDQGWRJLYHDSSURSULDWHGHIHUHQFHWRQRUPDOEXVLQHVVH[LJHQFLHVLQDOOFDVHVQRWLQYROYLQJH[SHGLWHGKDQGOLQJ
$WD[SD\HUZLWKDFRPSHOOLQJQHHGWRKDYHDUHTXHVWSURFHVVHGDKHDGRIUHTXHVWVUHFHLYHGEHIRUHLWPD\UHTXHVWH[SHGLWHGKDQGOLQJ7KLVUHTXHVWPXVWH[SODLQLQGHWDLOWKHQHHGIRUH[SHGLWHG
KDQGOLQJ7KHUHTXHVWIRUH[SHGLWHGKDQGOLQJPXVWEHPDGHLQZULWLQJSUHIHUDEO\LQDVHSDUDWH
letter included with the request for the letter ruling or determination letter or provided soon after
LWV¿OLQJ,IWKHUHTXHVWIRUH[SHGLWHGKDQGOLQJLVFRQWDLQHGLQWKHOHWWHUUHTXHVWLQJWKHOHWWHUUXOLQJ
RUGHWHUPLQDWLRQOHWWHUWKHOHWWHUVKRXOGVWDWHDWWKHWRSRIWKH¿UVWSDJH“Expedited Handling Is
Requested. See page ___ of this letter.”
$UHTXHVWIRUH[SHGLWHGKDQGOLQJZLOOQRWEHIRUZDUGHGWRDEUDQFKIRUDFWLRQXQWLOWKHXVHUIHH
has been paid.
:KHWKHUDUHTXHVWIRUH[SHGLWHGKDQGOLQJZLOOEHJUDQWHGLVZLWKLQWKH6HUYLFH¶VGLVFUHWLRQ7KH
6HUYLFHPD\JUDQWWKHUHTXHVWZKHQDIDFWRURXWVLGHDWD[SD\HU¶VFRQWUROFUHDWHVDUHDOEXVLQHVV
need to obtain a letter ruling or determination letter before a certain date to avoid serious business
FRQVHTXHQFHV([DPSOHVLQFOXGHVLWXDWLRQVLQZKLFKDFRXUWRUJRYHUQPHQWDODJHQF\KDVLPSRVHG
DVSHFL¿FGHDGOLQHIRUWKHFRPSOHWLRQRIDWUDQVDFWLRQRUZKHUHDWUDQVDFWLRQPXVWEHFRPSOHWHG
H[SHGLWLRXVO\WRDYRLGDQLPPLQHQWEXVLQHVVHPHUJHQF\VXFKDVWKHKRVWLOHWDNHRYHURIDFRUSRUDWHWD[SD\HUSURYLGHGWKDWWKHWD[SD\HUFDQGHPRQVWUDWHWKDWWKHGHDGOLQHRUEXVLQHVVHPHUJHQF\DQGWKHQHHGIRUH[SHGLWHGKDQGOLQJUHVXOWHGIURPFLUFXPVWDQFHV that could not reasonably
KDYHEHHQDQWLFLSDWHGRUFRQWUROOHGE\WKHWD[SD\HU7RTXDOLI\IRUH[SHGLWHGKDQGOLQJLQVXFK
VLWXDWLRQVWKHWD[SD\HUPXVWDOVRGHPRQVWUDWHWKDWWKHWD[SD\HUVXEPLWWHGWKHUHTXHVWDVSURPSWO\
DVSRVVLEOHDIWHUEHFRPLQJDZDUHRIWKHGHDGOLQHRUHPHUJHQF\7KHH[WHQWWRZKLFKWKHOHWWHUUXOing or determination letter request complies with all of the applicable requirements of this revenue
SURFHGXUHDQGIXOO\DQGFOHDUO\SUHVHQWVWKHLVVXHVLVDIDFWRULQGHWHUPLQLQJZKHWKHUH[SHGLWHG
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.

January 4, 2021

34

Bulletin No. 2021–1

The scheduling of a closing date for a transaction or a meeting of the board of directors or
VKDUHKROGHUVRIDFRUSRUDWLRQZLWKRXWUHJDUGIRUWKHWLPHLWPD\WDNHWRREWDLQDOHWWHUUXOLQJRU
GHWHUPLQDWLRQOHWWHUZLOOQRWEHFRQVLGHUHGDVXI¿FLHQWUHDVRQWRSURFHVVDUHTXHVWDKHDGRILWV
UHJXODURUGHU$OVRWKHSRVVLEOHHIIHFWRIÀXFWXDWLRQLQWKHPDUNHWSULFHRIVWRFNVRQDWUDQVDFWLRQ
ZLOOQRWEHFRQVLGHUHGDVXI¿FLHQWUHDVRQWRSURFHVVDUHTXHVWRXWRIRUGHU
Because most requests for letter rulings and determination letters cannot be processed out of
RUGHUWKH6HUYLFHXUJHVDOOWD[SD\HUVWRVXEPLWWKHLUUHTXHVWVZHOOLQDGYDQFHRIWKHFRQWHPSODWHG
WUDQVDFWLRQ,QDGGLWLRQWRIDFLOLWDWHSURPSWDFWLRQRQOHWWHUUXOLQJUHTXHVWVWD[SD\HUVDUHHQFRXUaged to ensure that their initial submissions comply with all of the requirements of this revenue
SURFHGXUHLQFOXGLQJWKHUHTXLUHPHQWVRIRWKHUDSSOLFDEOHJXLGHOLQHVVHWIRUWKLQ$SSHQGL[*RI
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.
Requesting form of any
document related to letter
ruling request provided
to taxpayer or taxpayer’s
authorized representative

(5) To request the receipt of any document related to letter ruling request by fax, electronic facsimile, or encrypted email attachment.,IWKHWD[SD\HUVRUHTXHVWVWKH$VVRFLDWHRI¿FH
PD\SURYLGHE\ID[HOHFWURQLFIDFVLPLOHRUHQFU\SWHGHPDLODWWDFKPHQWWRWKHWD[SD\HURUWKH
WD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHDFRS\RIDQ\GRFXPHQWUHODWHGWRWKHOHWWHUUXOLQJUHTXHVW
IRUH[DPSOHWKHOHWWHUUXOLQJLWVHOIRUDUHTXHVWIRUDGGLWLRQDOLQIRUPDWLRQ7KH6HUYLFHKDVWKH
GLVFUHWLRQWRGHWHUPLQHWKHIRUPLQZKLFKLWZLOOFRUUHVSRQGZLWKWKHWD[SD\HUEXWZLOOJHQHUDOO\
FRPSO\ZLWKDWD[SD\HU¶VUHTXHVWIRUDSDUWLFXODUIRUP
7KHWD[SD\HUPXVWPDNHVXFKDUHTXHVWLQZULWLQJSUHIHUDEO\DVSDUWRIWKHRULJLQDOUHTXHVW
for the letter ruling. The request may be submitted at a later date, but such a request will only
be respected prospectively with respect to documents generated after it is received, and must be
received prior to the signing of the letter ruling.
,IWKHWD[SD\HUUHTXHVWVGRFXPHQWVE\ID[RUHOHFWURQLFIDFVLPLOHWKHUHTXHVWPXVWFRQWDLQWKH
ID[QXPEHURIWKHWD[SD\HURUWKHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHWRZKRPWKHGRFXPHQWLV
WREHSURYLGHG$GRFXPHQWRWKHUWKDQWKHOHWWHUUXOLQJZLOOEHID[HGE\DEUDQFKUHSUHVHQWDWLYH$
FRS\RIWKHOHWWHUUXOLQJPD\EHID[HGE\HLWKHUDEUDQFKUHSUHVHQWDWLYHRUWKH'LVFORVXUHDQG/LWLJDWLRQ6XSSRUW%UDQFKRIWKH/HJDO3URFHVVLQJ'LYLVLRQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO
3URFHGXUHDQG$GPLQLVWUDWLRQ&&3$/3''6)RUSXUSRVHVRI†KKRZHYHUD
letter ruling is not issued until the ruling is mailed.
,IWKHWD[SD\HUUHTXHVWVGRFXPHQWVE\HQFU\SWHGHPDLODWWDFKPHQWWKHUHTXHVWPXVWVSHFLI\
ZKLFKHPDLOHQFU\SWLRQPHWKRGLVWREHXVHGDQGLIWKHWD[SD\HUKDVQRWDOUHDG\SURYLGHGWKH
appropriate memorandums of understanding (MOUs) to use encrypted email attachments, must
include those MOUs. See section 7.04(3) of this revenue procedure for acceptable email encryption methods and procedures.

Requesting a conference

Letter ruling requests
LQYROYLQJZHOIDUHEHQH¿W
funds (including voluntary
HPSOR\HHV¶EHQH¿FLDU\
associations (VEBAs))

Bulletin No. 2021–1

(6) To request a conference.$WD[SD\HUZKRZDQWVWRKDYHDFRQIHUHQFHRQWKHLVVXHVLQYROYHG
LQDUHTXHVWIRUDOHWWHUUXOLQJVKRXOGLQGLFDWHWKLVLQZULWLQJZKHQ¿OLQJWKHUHTXHVWRUVRRQWKHUHafter. See sections 10.01, 10.02, and 11.11(2) of this revenue procedure.
.03,IDOHWWHUUXOLQJLVVRXJKWRQWKHWD[FRQVHTXHQFHVWRERWKWKHZHOIDUHEHQH¿WIXQGDQGDQ
HPSOR\HUWKDWFRQWULEXWHGWRWKHIXQGHDFKWD[SD\HUWKHIXQGDQGHDFKFRQWULEXWLQJHPSOR\HU

35

January 4, 2021

PXVWVXEPLWDVHSDUDWHOHWWHUUXOLQJUHTXHVWDQGSD\WKHDSSOLFDEOHXVHUIHHOLVWHGLQ$SSHQGL[$
of this revenue procedure.
Submitting request
for letter ruling or
determination letter

.04 5HTXHVWVIRUOHWWHUUXOLQJVXQGHUWKHMXULVGLFWLRQRIDQ$VVRFLDWH2I¿FHPD\EHVXEPLWWHGE\
mail, by electronic facsimile, or by encrypted email attachment. Requests for determination letters
under the jurisdiction of LB&I may be submitted only by electronic facsimile or by encrypted
HPDLODWWDFKPHQW5HTXHVWVIRUGHWHUPLQDWLRQOHWWHUVXQGHUWKHMXULVGLFWLRQRI6%6(RU: ,PD\
EHVXEPLWWHGRQO\RQSDSHU)RUUHTXHVWVIRUGHWHUPLQDWLRQOHWWHUVXQGHUWKHMXULVGLFWLRQRI7(*(
see Rev. Proc. 2021-4 and Rev. Proc. 2021-5, this Bulletin.

Submission by mail

(1) $WD[SD\HUVXEPLWWLQJDUHTXHVWRQSDSHUJHQHUDOO\QHHGVWRVXEPLWWKHRULJLQDODQGRQH
copy of the request.
+RZHYHULIWKHWD[SD\HULGHQWL¿HVPXOWLSOH$VVRFLDWHRI¿FHVLQWKHUHTXHVWZLWKMXULVGLFWLRQ
RYHULVVXHVSUHVHQWHGE\WKHUHTXHVWWKHWD[SD\HUPXVWVXEPLWDQDGGLWLRQDOFRS\RIWKHUHTXHVW
IRUHDFKDGGLWLRQDO$VVRFLDWHRI¿FH,IWKHUHTXHVWLVXQGHUWKHMXULVGLFWLRQRIDVLQJOH$VVRFLDWH
RI¿FHEXWSUHVHQWVPXOWLSOHLVVXHVOLNHO\WRUHTXLUHUHYLHZE\PXOWLSOHEUDQFKHVRIWKDWRI¿FHWKH
WD[SD\HULVHQFRXUDJHGEXWQRWUHTXLUHGWRVXEPLWDGGLWLRQDOFRSLHVRIWKHUHTXHVW
)XUWKHUWKHWD[SD\HUPXVWVXEPLWWKHRULJLQDODQGWZRFRSLHVRIWKHUHTXHVWLIWKHWD[SD\HULV
UHTXHVWLQJVHSDUDWHOHWWHUUXOLQJVRUGHWHUPLQDWLRQOHWWHUVRQPXOWLSOHLVVXHVDVH[SODLQHGLQVHFWLRQ
RIWKLVUHYHQXHSURFHGXUHWKHWD[SD\HULVUHTXHVWLQJGHOHWLRQVRWKHUWKDQQDPHVDGGUHVVHVDQGLGHQWLI\LQJQXPEHUVDVH[SODLQHGLQVHFWLRQDRIWKLVUHYHQXHSURFHGXUHRQH
copy is the request for the letter ruling or determination letter and the second copy is the deleted
YHUVLRQRIVXFKUHTXHVWRUWKHWD[SD\HULVUHTXHVWLQJDFORVLQJDJUHHPHQWDVGH¿QHGLQVHFWLRQ
2.02 of this revenue procedure) on the issue presented.
(a) Addresses for request for letter ruling. (QYHORSHV RU SDFNDJHV FRQWDLQLQJ OHWWHU UXOLQJ
UHTXHVWVVKRXOGEHPDUNHG58/,1*5(48(6768%0,66,21
If a private delivery service is not used, requests for letter rulings should be sent to the followLQJDGGUHVV
Internal Revenue Service
Attn: CC:PA:LPD:TSS
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
,IDSULYDWHGHOLYHU\VHUYLFHLVXVHGWKHDGGUHVVLV
Internal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
5HTXHVWVIRUOHWWHUUXOLQJVPD\DOVREHKDQGGHOLYHUHGEHWZHHQWKHKRXUVRIDPDQG
SPWRWKHFRXULHU¶VGHVNDW&RQVWLWXWLRQ$YHQXH1::DVKLQJWRQ'&$UHFHLSWZLOOEH
JLYHQDWWKHFRXULHU¶VGHVN7KHSDFNDJHVKRXOGEHDGGUHVVHGWR

January 4, 2021

36

Bulletin No. 2021–1

Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
(b) 6%6(DQG: ,WD[SD\HUVVKRXOGVHQGUHTXHVWVIRUGHWHUPLQDWLRQOHWWHUVWRWKHDSSURSULDWH
6%6(RI¿FHOLVWHGLQ$SSHQGL[)RIWKLVUHYHQXHSURFHGXUH
Submission by electronic
facsimile

(2) 7D[SD\HUV DQG WKHLU UHSUHVHQWDWLYHV DUH HQFRXUDJHG WR XVH D VHFXUH HOHFWURQLF IDFVLPLOH
VHUYLFHIRUWUDQVPLWWLQJUHTXHVWVIRUDGYLFH7RXVHWKHVHFXUHHOHFWURQLFIDFVLPLOHPHWKRG¿UVW
VXEPLWWKHIXOOXVHUIHHSD\PHQWVHWIRUWKLQ$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHWKURXJKZZZ
pay.gov, and include a copy of the receipt for this payment with the request.
:KHQ FRPSLOLQJ WKH UHTXHVW SDFNDJH SURYLGH FOHDU WLWOHV IRU WKH GRFXPHQWV DQG GLVWLQJXLVK
¿OHV FRQWDLQLQJ DGPLQLVWUDWLYH IRUPV DQG UHFHLSWV IURP ¿OHV WKDW FRQWDLQ WKH UHTXHVW LWVHOI DQG
IURP VXSSOHPHQWDO PDWHULDOV ,I WKH VXEPLVVLRQ LV RYHU  0% RU RYHU  SDJHV EUHDN LW LQWR
smaller components and number the components sequentially with the total number (such as “1 of
4”, “2 of 4”, “3 of 4”, and “4 of 4”).
7UDQVPLW WKH IXOO SDFNDJH DORQJ ZLWK D FRYHU VKHHW WR WKH VHFXUH HOHFWURQLF IDFVLPLOH OLQHV
below.
)RUUHTXHVWVXQGHUWKHMXULVGLFWLRQRIDQ$VVRFLDWHRI¿FH(877) 773-4950.
)RUGHWHUPLQDWLRQOHWWHUUHTXHVWVXQGHUWKHMXULVGLFWLRQRI/% ,(844) 249-6231.

Submission by encrypted
email attachment

(3) 7KHUHDUHPRUHULVNVDVVRFLDWHGZLWKHPDLOWKDQZLWKHOHFWURQLFIDFVLPLOHVXFKDVWKHSRVVLELOLW\WKDWVHQVLWLYHWD[SD\HULQIRUPDWLRQFRXOGEHLQWHUFHSWHG$FFRUGLQJO\WKH6HUYLFHHQFRXUDJHVWD[SD\HUVWRXVHDVHFXUHHOHFWURQLFIDFVLPLOHVHUYLFHIRUWUDQVPLWWLQJUHTXHVWVIRUDGYLFH$V
an alternative, this section provides procedures for using encrypted email attachments for transPLWWLQJDUHTXHVWIRUDGYLFHXQGHUWKHMXULVGLFWLRQRIDQ$VVRFLDWHRI¿FHRU/% ,
7D[SD\HUVXVLQJHQFU\SWHGHPDLODWWDFKPHQWVPD\FKRRVHWRXVHDFRPSUHVVLRQXWLOLW\FRPpatible with SecureZIP (note that many open-source utilities are not compatible with SecureZIP),
$GREH$FUREDW3URSDVVZRUGHQFU\SWLRQRU0LFURVRIW2I¿FH3URWHFW'RFXPHQWWRHQFU\SWDQGVHQGSDVVZRUGSURWHFWHG¿OHV%HFDXVHWKHVHSURJUDPVGRQRWHQFU\SWWKHVXEMHFWOLQHRU
ERG\RIDQHPDLORUWKH¿OHQDPHRIWKHDWWDFKPHQWDOOVHQVLWLYHWD[SD\HULQIRUPDWLRQLQFOXGLQJ
WKHQDPHRIWKHWD[SD\HUVKRXOGEHLQFOXGHGRQO\LQWKHHQFU\SWHGDWWDFKPHQW
These programs require that a sender create a password for the recipient to use to decrypt the
attachments. The password should never be sent in the same email as the encrypted attachment.
,QVWHDGLWVKRXOGEHSURYLGHGWRWKH6HUYLFHLQDVHSDUDWHHPDLOZLWKDVXEMHFWOLQHWKDWPDNHVLW
easy to connect the password to the encrypted email.
7RXVHHQFU\SWHGHPDLODWWDFKPHQWV¿UVWVXEPLWWKHIXOOXVHUIHHSD\PHQWVHWIRUWKLQ$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHWKURXJKZZZSD\JRYDQGLQFOXGHDFRS\RIWKHUHFHLSWIRUWKLV
payment with the request.

Bulletin No. 2021–1

37

January 4, 2021

$UHTXHVWWUDQVPLWWHGWKURXJKHPDLOPXVWEHDFFRPSDQLHGE\WZR028VWKH028LQ$SSHQGL[
+RIWKLVUHYHQXHSURFHGXUHDFNQRZOHGJLQJWKHULVNVRIXVLQJHPDLOWRWUDQVPLWVHQVLWLYHWD[SD\HU
LQIRUPDWLRQDQGWKHDSSURSULDWH028LQ$SSHQGL[,DJUHHLQJWRWKHWHUPVIRUXVLQJWKHFKRVHQ
PHWKRGRIHQFU\SWLRQWRUHFHLYHVHQVLWLYHWD[SD\HULQIRUPDWLRQ7KHVH028VPXVWEHVLJQHGE\
WKHWD[SD\HUQRWWKHWD[SD\HU¶VUHSUHVHQWDWLYHLQDPDQQHUFRQVLVWHQWZLWKVHFWLRQRIWKLV
revenue procedure. A Counsel representative will countersign and return the second MOU to the
requester prior to transmitting any other information by encrypted email attachments.
:KHQ FRPSLOLQJ WKH UHTXHVW SDFNDJH SURYLGH FOHDU WLWOHV IRU WKH GRFXPHQWV DQG GLVWLQJXLVK
¿OHV FRQWDLQLQJ DGPLQLVWUDWLYH IRUPV DQG UHFHLSWV IURP ¿OHV WKDW FRQWDLQ WKH UHTXHVW LWVHOI DQG
IURPVXSSOHPHQWDOPDWHULDOV(QFU\SWWKH¿OHVRUHQDEOHWKHHQFU\SWLRQXWLOLW\RQWKHHPDLOV\VWHP
EHIRUHJHQHUDWLQJWKHHPDLO,IWKHVXEPLVVLRQLVRYHU0%RURYHUSDJHVEUHDNLWLQWRVPDOOHU
FRPSRQHQWVWKDWGRQRWH[FHHG0%HDFKDQGQXPEHUWKHFRPSRQHQWVVHTXHQWLDOO\ZLWKWKHWRWDO
number (such as “1 of 4”, “2 of 4”, “3 of 4”, and “4 of 4”).
7UDQVPLWWKHIXOOSDFNDJHWRWKHHPDLODGGUHVVHVEHORZ
)RUUHTXHVWVXQGHUWKHMXULVGLFWLRQRIDQ$VVRFLDWHRI¿FH[email protected].
)RUGHWHUPLQDWLRQOHWWHUUHTXHVWVXQGHUWKHMXULVGLFWLRQRI/% ,[email protected]7D[SD\HU
UHSUHVHQWDWLYHVWKDWKDYHWKHWHFKQLFDODELOLW\WRH[FKDQJHHPDLOHQFU\SWHGZLWK6HFXUH0XOWLSXUSRVH,QWHUQHW0DLO([WHQVLRQV60,0(FHUWL¿FDWHVPD\DOVRHOHFWWRXVH/% ,¶V6HFXUH(PDLO
0HVVDJH6\VWHP6(065HSUHVHQWDWLYHVVHHNLQJWRXVH6(06VKRXOGFRQWDFWWKH/% ,2I¿FH
of the Assistant Deputy Commissioner, Compliance Integration at the phone number listed below.
Pending letter ruling
requests
Circumstances under which
the taxpayer with a pending
letter ruling request must
QRWLI\WKH$VVRFLDWHRI¿FH

.05
(1) Circumstances under which the taxpayer with a pending letter ruling request must
QRWLI\WKH$VVRFLDWHRI¿FH7KHWD[SD\HUPXVWQRWLI\WKH$VVRFLDWHRI¿FHLIDIWHUWKHOHWWHUUXOLQJ
UHTXHVWLV¿OHGEXWEHIRUHDOHWWHUUXOLQJLVLVVXHGWKHWD[SD\HUNQRZVWKDW²
DD¿HOGRI¿FHKDVVWDUWHGDQH[DPLQDWLRQRIWKHLVVXHRUWKHLGHQWLFDOLVVXHRQDQHDUOLHU\HDU¶V
UHWXUQ
ELQWKHFDVHRID†UHTXHVWD¿HOGRI¿FHKDVVWDUWHGDQH[DPLQDWLRQRIWKHUHWXUQ
IRUWKHWD[DEOH\HDULQZKLFKDQHOHFWLRQVKRXOGKDYHEHHQPDGHRUDQ\WD[DEOH\HDUWKDWZRXOG
have been affected by the election had it been timely made. See § 301.9100-3(e)(4)(i) and section
RIWKLVUHYHQXHSURFHGXUH
(c) legislation that may affect the transaction has been introduced. See section 7.01(11) of this
UHYHQXHSURFHGXUH
(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
WD[SD\HUDUHODWHGSDUW\ZLWKLQWKHPHDQLQJRI†RU†ERUDPHPEHURIDQDI¿OLDWHG
JURXSRIZKLFKWKHWD[SD\HULVDOVRDPHPEHUZLWKLQWKHPHDQLQJRI†
HLQTXDOL¿HGUHWLUHPHQWSODQPDWWHUVWKHLVVXHLVEHLQJFRQVLGHUHGE\WKH3HQVLRQ%HQH¿W
*XDUDQW\&RUSRUDWLRQRUWKH'HSDUWPHQWRI/DERURU

January 4, 2021

38

Bulletin No. 2021–1

(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
$VVRFLDWHRI¿FHLIDUHWXUQ
LV¿OHGDQGPXVWDWWDFKWKH
request to the return

7D[SD\HUPXVWQRWLI\WKH$VVRFLDWHRI¿FHLIDUHWXUQLV¿OHGDQGPXVWDWWDFKWKHUHTXHVW
to the return.,IWKHWD[SD\HU¿OHVDUHWXUQEHIRUHDOHWWHUUXOLQJLVUHFHLYHGIURPWKH$VVRFLDWHRI¿FHFRQFHUQLQJDQLVVXHLQWKHUHWXUQWKHWD[SD\HUPXVWQRWLI\WKH$VVRFLDWHRI¿FHWKDWWKHUHWXUQ
KDVEHHQ¿OHG7KHWD[SD\HUPXVWDOVRDWWDFKDFRS\RIWKHOHWWHUUXOLQJUHTXHVW)RUPLIIRU
DQRQDXWRPDWLFFKDQJHLQPHWKRGRIDFFRXQWLQJWRWKHUHWXUQWRDOHUWWKH¿HOGRI¿FHDQGDYRLG
SUHPDWXUH¿HOGDFWLRQRQWKHLVVXH7D[SD\HUV¿OLQJWKHLUUHWXUQVHOHFWURQLFDOO\PD\VDWLVI\WKLV
requirement by attaching to their return a statement providing the date of the letter ruling request
and the control number of the letter ruling.
,IXQGHUWKHOLPLWHGFLUFXPVWDQFHVSHUPLWWHGLQVHFWLRQRIWKLVUHYHQXHSURFHGXUHWKHWD[SD\HUUHTXHVWVDOHWWHUUXOLQJDIWHUWKHUHWXUQLV¿OHGEXWEHIRUHWKHUHWXUQLVH[DPLQHGWKHWD[SD\HU
PXVWDOVRQRWLI\WKH¿HOGRI¿FHKDYLQJMXULVGLFWLRQRYHUWKHUHWXUQDQGDWWDFKDFRS\RIWKHOHWWHU
UXOLQJUHTXHVWWRWKHQRWL¿FDWLRQWRDOHUWWKH¿HOGRI¿FHDQGDYRLGSUHPDWXUH¿HOGDFWLRQRQWKH
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$WD[SD\HUZKREHIRUH¿OLQJDUHWXUQUHFHLYHVDOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUDERXW
DQ\WUDQVDFWLRQWKDWKDVEHHQFRQVXPPDWHGDQGWKDWLVUHOHYDQWWRWKHUHWXUQEHLQJ¿OHGPXVWDWWDFKWRWKHUHWXUQDFRS\RIWKHOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHU7D[SD\HUV¿OLQJWKHLUUHWXUQV
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
RI¿FHPD\GHFOLQHWRLVVXH
letter ruling
In general

Bulletin No. 2021–1

.077KHWD[SD\HURUWKHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHPD\REWDLQLQIRUPDWLRQUHJDUGLQJ
the status of a request for a letter ruling or determination letter by calling the person whose name
DQGWHOHSKRQHQXPEHUDUHVKRZQRQWKHDFNQRZOHGJPHQWRIUHFHLSWRIWKHUHTXHVWRULQWKHFDVH
RIDUHTXHVWIRUDOHWWHUUXOLQJWKHDSSURSULDWHEUDQFKUHSUHVHQWDWLYHZKRFRQWDFWVWKHWD[SD\HUDV
H[SODLQHGLQVHFWLRQRIWKLVUHYHQXHSURFHGXUH
.08

(1) In general.$WD[SD\HUPD\ZLWKGUDZDUHTXHVWIRUDOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUDW
any time before the letter ruling or determination letter is signed by the Service. Correspondence
DQGH[KLELWVUHODWHGWRDUHTXHVWWKDWLVZLWKGUDZQRUUHODWHGWRDOHWWHUUXOLQJUHTXHVWIRUZKLFKDQ
$VVRFLDWHRI¿FHGHFOLQHVWRLVVXHDOHWWHUUXOLQJZLOOQRWEHUHWXUQHGWRWKHWD[SD\HUSee section
D RI WKLV UHYHQXH SURFHGXUH ,Q DSSURSULDWH FDVHV DQ$VVRFLDWH RI¿FH PD\ SXEOLVK LWV
conclusions in a revenue ruling or revenue procedure.

39

January 4, 2021

1RWL¿FDWLRQRIDSSURSULDWH
6HUYLFHRI¿FLDO

1RWL¿FDWLRQRIDSSURSULDWH6HUYLFHRI¿FLDO
(a) Letter ruling requests.,IDWD[SD\HUZLWKGUDZVDOHWWHUUXOLQJUHTXHVWRULIWKH$VVRFLDWH
RI¿FHGHFOLQHVWRLVVXHDOHWWHUUXOLQJWKH$VVRFLDWHRI¿FHJHQHUDOO\ZLOOQRWLI\E\PHPRUDQGXP
WKHDSSURSULDWH6HUYLFHRI¿FLDOLQWKHRSHUDWLQJGLYLVLRQWKDWKDVH[DPLQDWLRQMXULVGLFWLRQRIWKH
WD[SD\HU¶VWD[UHWXUQ)RUWD[SD\HUVXQGHUWKHMXULVGLFWLRQRIWKH'LYLVLRQ&RXQVHO/% ,WKH
$VVRFLDWHRI¿FHZLOODOVRVHQGDFRS\RIWKHPHPRUDQGXPWRWKH$VVLVWDQW'HSXW\&RPPLVVLRQHU
&RPSOLDQFH,QWHJUDWLRQ,QGRLQJVRWKH$VVRFLDWHRI¿FHPD\JLYHLWVYLHZVRQWKHLVVXHVLQWKH
UHTXHVWIRUFRQVLGHUDWLRQLQDQ\ODWHUH[DPLQDWLRQRIWKHUHWXUQ
7KLVVHFWLRQDJHQHUDOO\GRHVQRWDSSO\LIWKHWD[SD\HUZLWKGUDZVWKHOHWWHUUXOLQJUHquest and submits a written statement that the transaction has been, or is being, abandoned and if
WKH$VVRFLDWHRI¿FHKDVQRWDOUHDG\IRUPHGDQDGYHUVHRSLQLRQ
(b) 1RWL¿FDWLRQRI6HUYLFHRI¿FLDOPD\FRQVWLWXWH&KLHI&RXQVHO$GYLFH If the memorandum referred to in paragraph (a) of this section 7.08(2) provides more than the fact that the request
ZDVZLWKGUDZQDQGWKDWWKH$VVRFLDWHRI¿FHZDVWHQWDWLYHO\DGYHUVHRUPRUHWKDQWKHIDFWWKDWWKH
$VVRFLDWHRI¿FHGHFOLQHGWRLVVXHDOHWWHUUXOLQJWKHPHPRUDQGXPPD\FRQVWLWXWH&KLHI&RXQVHO
$GYLFHDVGH¿QHGLQ†LDQGPD\EHVXEMHFWWRGLVFORVXUHXQGHU†

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

7KH$VVRFLDWHRI¿FHVZLOOLVVXHOHWWHUUXOLQJVRQWKHPDWWHUVDQGXQGHUWKHFLUFXPVWDQFHVH[SODLQHGLQVHFWLRQVDQGRIWKLVUHYHQXHSURFHGXUHDQGLQWKHPDQQHUH[SODLQHGLQWKLVVHFWLRQ
and section 11 of this revenue procedure. See section 9 of this revenue procedure for procedures
for change in method of accounting requests.

Technical Services Support
Branch receives, initially
controls, and refers the
request to the appropriate
$VVRFLDWHRI¿FH

.01 All requests for letter rulings will be received and initially controlled by the Technical Services Support Branch of the Legal Processing Division of the Associate Chief Counsel (Procedure
DQG$GPLQLVWUDWLRQ&&3$/3'7667KDWRI¿FHZLOOSURFHVVWKHLQFRPLQJGRFXPHQWVDQGWKH
XVHUIHHDQGLWZLOOIRUZDUGWKH¿OHWRWKHDSSURSULDWH$VVRFLDWHRI¿FHIRUDVVLJQPHQWWRDEUDQFK
WKDWKDVMXULVGLFWLRQRYHUWKHVSHFL¿FLVVXHLQYROYHGLQWKHUHTXHVW

Branch representative of
WKH$VVRFLDWHRI¿FHFRQWDFWV
taxpayer within 21 calendar
days

.02 Within 21 calendar days after a letter ruling request has been received in the branch of the
$VVRFLDWHRI¿FHWKDWKDVMXULVGLFWLRQRYHUWKHLVVXHDUHSUHVHQWDWLYHRIWKHEUDQFKZLOOFRQWDFW
WKH WD[SD\HU RU LI WKH UHTXHVW LQFOXGHV D SURSHUO\ H[HFXWHG SRZHU RI DWWRUQH\ WKH DXWKRUL]HG
representative, unless the power of attorney provides otherwise. During such contact, the branch
UHSUHVHQWDWLYHZLOOGLVFXVVWKHSURFHGXUDOLVVXHVLQWKHOHWWHUUXOLQJUHTXHVW,IWKHFDVHLVFRPSOH[
or a number of issues are involved, it may not be possible for the branch representative to discuss
WKHVXEVWDQWLYHLVVXHVGXULQJWKLVLQLWLDOFRQWDFW:KHQSRVVLEOHIRUHDFKLVVXHZLWKLQWKHEUDQFK¶V
MXULVGLFWLRQWKHEUDQFKUHSUHVHQWDWLYHZLOOWHOOWKHWD[SD\HU²
ZKHWKHUWKHEUDQFKUHSUHVHQWDWLYHZLOOUHFRPPHQGWKDWWKH$VVRFLDWHRI¿FHUXOHDVWKHWD[SD\HUUHTXHVWHGUXOHDGYHUVHO\RQWKHPDWWHURUQRWUXOH
ZKHWKHUWKHWD[SD\HUVKRXOGVXEPLWDGGLWLRQDOLQIRUPDWLRQWRHQDEOHWKH$VVRFLDWHRI¿FHWR
UXOHRQWKHPDWWHU
(3) whether the letter ruling complies with all of the provisions of this revenue procedure, and
LIQRWZKLFKUHTXLUHPHQWVKDYHQRWEHHQPHWRU

January 4, 2021

40

Bulletin No. 2021–1

(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
RU$VVRFLDWHRI¿FHDUHSUHVHQWDWLYHRIWKHEUDQFKWKDWUHFHLYHGWKHRULJLQDOUHTXHVWZLOOWHOOWKH
WD[SD\HUZLWKLQWKHLQLWLDOFDOHQGDUGD\V²
WKDWWKHPDWWHUVZLWKLQWKHMXULVGLFWLRQRIDQRWKHUEUDQFKRU$VVRFLDWHRI¿FHKDYHEHHQUHIHUUHGWRWKDWEUDQFKRU$VVRFLDWHRI¿FHIRUFRQVLGHUDWLRQDQGWKHGDWHWKHUHIHUUDOZDVPDGHDQG
WKDWDUHSUHVHQWDWLYHRIWKDWEUDQFKRU$VVRFLDWHRI¿FHZLOOFRQWDFWWKHWD[SD\HUZLWKLQ
FDOHQGDUGD\VDIWHUUHFHLYLQJWKHUHIHUUDOWRGLVFXVVLQIRUPDOO\WKHSURFHGXUDODQGWRWKHH[WHQW
possible, the substantive issues in the request.
7KLVVHFWLRQDSSOLHVWRDOOPDWWHUVH[FHSWIRUFDVHVZLWKLQWKHMXULVGLFWLRQRIWKH$VVRFLDWH
Chief Counsel (Financial Institutions and Products) concerning insurance issues requiring actuarial computations.
Determines if transaction
FDQEHPRGL¿HGWRREWDLQ
favorable letter ruling

.03 If less than a fully favorable letter ruling is anticipated, the branch representative will tell
WKHWD[SD\HUZKHWKHUPLQRUFKDQJHVLQWKHWUDQVDFWLRQRUDGKHUHQFHWRFHUWDLQSXEOLVKHGSRVLWLRQV
ZRXOGEULQJDERXWDIDYRUDEOHUXOLQJ7KHEUDQFKUHSUHVHQWDWLYHPD\DOVRWHOOWKHWD[SD\HUWKH
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
WUDQVDFWLRQRUPDWHULDOO\DOWHUDWD[SD\HU¶VSURSRVHGDFFRXQWLQJSHULRG
If, at the end of this discussion, the branch representative determines that a meeting in the AssoFLDWHRI¿FHZRXOGEHPRUHKHOSIXOWRGHYHORSRUH[FKDQJHLQIRUPDWLRQDPHHWLQJZLOOEHRIIHUHG
DQGDQHDUO\PHHWLQJGDWHDUUDQJHG:KHQRIIHUHGWKLVPHHWLQJLVLQDGGLWLRQWRWKHWD[SD\HU¶V
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

.047KH6HUYLFHZLOOQRWEHERXQGE\WKHLQIRUPDORSLQLRQH[SUHVVHGE\WKHEUDQFKUHSUHVHQWDtive 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.,IWKHUHTXHVWODFNV
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 docuPHQWVQHHGHGIURPWKHWD[SD\HUWKHEUDQFKUHSUHVHQWDWLYHZLOOUHTXHVWVXFKLQIRUPDWLRQGXULQJ
WKHLQLWLDORUVXEVHTXHQWFRQWDFWVZLWKWKHWD[SD\HURULWVDXWKRUL]HGUHSUHVHQWDWLYH7KHEUDQFK
UHSUHVHQWDWLYHZLOOLQIRUPWKHWD[SD\HURULWVDXWKRUL]HGUHSUHVHQWDWLYHWKDWWKHUHTXHVWZLOOEH
FORVHGLIWKH$VVRFLDWHRI¿FHGRHVQRWUHFHLYHWKHUHTXHVWHGLQIRUPDWLRQZLWKLQFDOHQGDUGD\V
IURPWKHGDWHRIWKHUHTXHVWXQOHVVDQH[WHQVLRQRIWLPHLVJUDQWHG7RIDFLOLWDWHSURPSWDFWLRQRQ
OHWWHU UXOLQJ UHTXHVWV WD[SD\HUV PD\ UHTXHVW WKDW WKH$VVRFLDWH RI¿FH UHTXHVW DGGLWLRQDO LQIRUPDWLRQ E\ ID[ HOHFWURQLF IDFVLPLOH RU HQFU\SWHG HPDLO DWWDFKPHQW See section 7.02(5) of this
revenue procedure.
0DWHULDOIDFWVIXUQLVKHGWRWKH$VVRFLDWHRI¿FHE\WHOHSKRQHRURUDOO\DWDFRQIHUHQFHPXVWEH
SURPSWO\FRQ¿UPHGLQZULWLQJE\PDLOID[RUHPDLOWRWKH$VVRFLDWHRI¿FH7KLVFRQ¿UPDWLRQ

Bulletin No. 2021–1

41

January 4, 2021

DQGDQ\DGGLWLRQDOLQIRUPDWLRQUHTXHVWHGE\WKH$VVRFLDWHRI¿FHWKDWLVQRWSDUWRIWKHLQIRUPDWLRQ
requested during the initial contact, must be furnished within 21 calendar days from the date the
$VVRFLDWHRI¿FHPDNHVWKHUHTXHVW
Extension of reply period if
MXVWL¿HGDQGDSSURYHG

([WHQVLRQRIUHSO\SHULRGLIMXVWL¿HGDQGDSSURYHG7KH6HUYLFHZLOOJUDQWDQH[WHQVLRQ
RIWKHGD\SHULRGIRUSURYLGLQJDGGLWLRQDOLQIRUPDWLRQRQO\LIWKHH[WHQVLRQLVMXVWL¿HGLQZULWLQJE\WKHWD[SD\HUDQGDSSURYHGE\WKHEUDQFKUHYLHZHU$UHTXHVWIRUDQH[WHQVLRQVKRXOGEH
submitted before the end of the 21-day period. If unusual circumstances close to the end of the
GD\SHULRGPDNHDZULWWHQUHTXHVWLPSUDFWLFDOWKHWD[SD\HUVKRXOGQRWLI\WKH$VVRFLDWHRI¿FH
ZLWKLQWKHGD\SHULRGWKDWWKHUHLVDSUREOHPDQGWKDWWKHZULWWHQUHTXHVWIRUH[WHQVLRQZLOOEH
SURYLGHGVKRUWO\7KHWD[SD\HUZLOOEHWROGSURPSWO\RIWKHDSSURYDORUGHQLDORIWKHUHTXHVWHG
H[WHQVLRQ,IWKHH[WHQVLRQUHTXHVWLVGHQLHGWKHUHLVQRULJKWRIDSSHDO

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
WKHWD[SD\HUGRHVQRWVXEPLWWKHLQIRUPDWLRQUHTXHVWHGGXULQJWKHLQLWLDORUVXEVHTXHQWFRQWDFWV
ZLWKLQWKHWLPHSURYLGHGWKHOHWWHUUXOLQJUHTXHVWZLOOEHFORVHGDQGWKHWD[SD\HUZLOOEHQRWL¿HG
in writing. If the information is received after the request is closed, the request will be reopened
DQGWUHDWHGDVDQHZUHTXHVWDVRIWKHGDWHWKHLQIRUPDWLRQLVUHFHLYHG7KHWD[SD\HUPXVWSD\
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
EH DFFRPSDQLHG E\ WKH IROORZLQJ GHFODUDWLRQ “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(16)(b) of this revenue procedure.

Transmitting request and
submitting additional
information by fax,
electronic facsimile, or
encrypted email attachment

(5) Transmitting request and submitting additional information by fax, electronic facsimile, or encrypted email attachment. To facilitate prompt action on letter ruling requests,
WD[SD\HUVPD\UHTXHVWWKDWWKH$VVRFLDWHRI¿FHUHTXHVWDGGLWLRQDOLQIRUPDWLRQE\ID[HOHFWURQLF
facsimile, or encrypted email attachment. See section 7.02(5) of this revenue procedure.
7D[SD\HUVPD\DOVRVXEPLWDGGLWLRQDOLQIRUPDWLRQE\ID[HOHFWURQLFIDFVLPLOHRUHQFU\SWHG
HPDLODWWDFKPHQWDVVRRQDVWKHLQIRUPDWLRQLVDYDLODEOH7KH$VVRFLDWHRI¿FHUHSUHVHQWDWLYHZKR
UHTXHVWV DGGLWLRQDO LQIRUPDWLRQ FDQ SURYLGH D ID[ RU HOHFWURQLF IDFVLPLOH QXPEHU WR ZKLFK WKH
information can be sent.

Submitting additional
information by mail

(6) Submitting additional information by mail
D,IDSULYDWHGHOLYHU\VHUYLFHLVQRWXVHGWKHDGGLWLRQDOLQIRUPDWLRQVKRXOGEHVHQWWR
Internal Revenue Service
ADDITIONAL INFORMATION
$WWQ>1DPHRI¿FHV\PEROVDQGURRPQXPEHURIWKH$VVRFLDWH
RI¿FHUHSUHVHQWDWLYHZKRUHTXHVWHGWKHLQIRUPDWLRQ@
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

January 4, 2021

42

Bulletin No. 2021–1

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
WR
Internal Revenue Service
ADDITIONAL INFORMATION
$WWQ>1DPHRI¿FHV\PEROVDQGURRPQXPEHURIWKH$VVRFLDWH
RI¿FHUHSUHVHQWDWLYHZKRUHTXHVWHGWKHLQIRUPDWLRQ@
1111 Constitution Ave., NW
Washington, DC 20224
F$WD[SD\HUVXEPLWWLQJDGGLWLRQDOLQIRUPDWLRQE\PDLORQO\QHHGVWRVXEPLWRQHFRS\RIWKH
DGGLWLRQDOLQIRUPDWLRQXQOHVVWKH$VVRFLDWHRI¿FHUHTXHVWVDGGLWLRQDOFRSLHV
Identifying information
included in additional
information

(7) Identifying information)RUDOOFDVHVWKHDGGLWLRQDOLQIRUPDWLRQVKRXOGLQFOXGHWKHWD[SD\HU¶VQDPHDQGWKHFDVHFRQWUROQXPEHUDQGWKHQDPHRI¿FHV\PEROVDQGURRPQXPEHURIWKH
$VVRFLDWHRI¿FHUHSUHVHQWDWLYHZKRUHTXHVWHGWKHLQIRUPDWLRQ7KH$VVRFLDWHRI¿FHUHSUHVHQWDWLYH
FDQSURYLGHWKHODWWHULQIRUPDWLRQWRWKHWD[SD\HU

Near the completion of the
ruling process, advises the
taxpayer of conclusions
and, if the Associate
RI¿FHZLOOUXOHDGYHUVHO\
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
EUDQFKUHSUHVHQWDWLYHZLOORUDOO\QRWLI\WKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHRIWKH$VVRFLDWHRI¿FH¶VFRQFOXVLRQVSee section 10 of this revenue procedure for a discussion of conferences
RIULJKW,IWKH$VVRFLDWHRI¿FHLVJRLQJWRUXOHDGYHUVHO\WKHWD[SD\HUZLOOEHRIIHUHGWKHRSSRUWXQLW\WRZLWKGUDZWKHOHWWHUUXOLQJUHTXHVW,IZLWKLQWHQFDOHQGDUGD\VRIWKHQRWL¿FDWLRQE\WKH
EUDQFKUHSUHVHQWDWLYHWKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHGRHVQRWQRWLI\WKHEUDQFKUHSUHVHQWDWLYHWKDWWKHWD[SD\HUZLVKHVWRZLWKGUDZWKHUXOLQJUHTXHVWWKHDGYHUVHOHWWHUUXOLQJZLOOEH
LVVXHGXQOHVVDQH[WHQVLRQLVJUDQWHGSee section 15.10 of this revenue procedure for information
regarding refunds of user fees.

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
UXOLQJSURFHVVWKH$VVRFLDWHRI¿FHUHSUHVHQWDWLYHPD\UHTXHVWWKDWWKHWD[SD\HURUWKHWD[SD\HU¶V
representative submit a proposed draft of the letter ruling. Such draft would be based on the disFXVVLRQVRIWKHLVVXHVEHWZHHQWKHUHSUHVHQWDWLYHDQGWKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYH
7KHWD[SD\HULVQRWUHTXLUHGWRSUHSDUHDGUDIWOHWWHUUXOLQJWRUHFHLYHDOHWWHUUXOLQJ
7KHIRUPDWRIWKHVXEPLVVLRQVKRXOGEHGLVFXVVHGZLWKWKH$VVRFLDWHRI¿FHUHSUHVHQWDWLYHZKR
requests the draft letter ruling. The representative usually can provide a sample format of a letter
UXOLQJDQGZLOOGLVFXVVZLWKWKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHWKHIDFWVDQDO\VLVDQG
letter ruling language to be included.
7KHWD[SD\HUVKRXOGVXEPLWWKHGUDIWLQWKHVDPHPDQQHUDVDQ\RWKHUDGGLWLRQDOLQIRUPDWLRQ
and should contain in the transmittal the information that should be included with any other addiWLRQDOLQIRUPDWLRQIRUH[DPSOHDSHQDOWLHVRISHUMXU\VWDWHPHQWLVUHTXLUHGSee section 8.05(5)
and (6) of this revenue procedure.

Bulletin No. 2021–1

43

January 4, 2021

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
SURYLGHGLQSDUDJUDSK$DRI$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHIRUVXEVWDQWLDOO\LGHQWLcal letter rulings, a separate letter ruling will generally be issued for each requester or entity as the
$VVRFLDWHRI¿FHGHHPVQHFHVVDU\
(2) Related § 301.9100 letter rulings.
D)RUD†OHWWHUUXOLQJUHTXHVWIRUDQH[WHQVLRQRIWLPHWR¿OHD)RUPTXDOLI\LQJXQGHUVHFWLRQIRUWKHXVHUIHHSURYLGHGLQSDUDJUDSK$GRI$SSHQGL[$RIWKLV
UHYHQXHSURFHGXUHIRUDQLGHQWLFDOFKDQJHLQPHWKRGRIDFFRXQWLQJWKH$VVRFLDWHRI¿FHJHQHUDOO\
will issue a single letter on behalf of all applicants on Form 3115 that are the subject of the request.
E)RUD†OHWWHUUXOLQJUHTXHVWIRUDQH[WHQVLRQRIWLPHWR¿OHDQHQWLW\FODVVL¿FDtion election for multiple entities qualifying under section 15.07(2) for the user fee provided in
SDUDJUDSK$DRI$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHWKH$VVRFLDWHRI¿FHJHQHUDOO\ZLOO
LVVXHDVLQJOHOHWWHURQEHKDOIRIDOOHQWLWLHVWKDWDUHWKHVXEMHFWRIWKHUHTXHVW7KHWD[SD\HUPD\
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
6HUYLFHRI¿FLDO

.097KH$VVRFLDWHRI¿FHZLOOVHQGDFRS\RIWKHOHWWHUUXOLQJZKHWKHUIDYRUDEOHRUDGYHUVHWR
WKHDSSURSULDWH6HUYLFHRI¿FLDOLQWKHRSHUDWLQJGLYLVLRQWKDWKDVH[DPLQDWLRQMXULVGLFWLRQRIWKH
WD[SD\HU¶VWD[UHWXUQ

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

7KLVVHFWLRQSURYLGHVWKHVSHFL¿FDQGDGGLWLRQDOSURFHGXUHVDSSOLFDEOHWRDUHTXHVWIRUDFKDQJH
in method of accounting under Rev. Proc. 2015-13, 2015-5 I.R.B. 419 (or any successor), as clarL¿HGDQGPRGL¿HGE\5HY3URF,5%DVPRGL¿HGE\6HFWLRQRI
5HY3URF,5%DQGDVPRGL¿HGE\5HY3URF,5%
or other automatic change request procedures.

Automatic and nonautomatic change in method
of accounting requests

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

January 4, 2021

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

(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
WD[SD\HUUHTXHVWLQJWKHFKDQJHLVZLWKLQWKHVFRSHRIWKHSURFHGXUHWKHFKDQJHLVDQDXWRPDWLF
FKDQJHIRUWKHUHTXHVWHG\HDURIWKHFKDQJHDQGWKHWD[SD\HULVHOLJLEOHWRPDNHWKHFKDQJH7KH
&RPPLVVLRQHU¶VFRQVHQWWRDQRWKHUZLVHTXDOLI\LQJDXWRPDWLFFKDQJHLQPHWKRGRIDFFRXQWLQJLV
JUDQWHGRQO\LIWKHWD[SD\HUWLPHO\FRPSOLHVZLWKWKHDSSOLFDEOHDXWRPDWLFFKDQJHUHTXHVWSURFH-

44

Bulletin No. 2021–1

dures. But seeVHFWLRQRIWKLVUHYHQXHSURFHGXUHFRQFHUQLQJUHYLHZE\DQ$VVRFLDWHRI¿FHDQG
D¿HOGRI¿FH,QJHQHUDODWD[SD\HUUHTXHVWVDQDXWRPDWLFFKDQJHE\¿OLQJDFXUUHQW)RUP
Application for Change in Method of Accounting.
$QDSSOLFDWLRQ¿OHGXQGHUWKHDXWRPDWLFFKDQJHSURFHGXUHVLQ5HY3URFRUDQ\VXFcessor) 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
QRWEHPDGHXQGHUDQDXWRPDWLFFKDQJHUHTXHVWSURFHGXUHWKHWD[SD\HUPD\UHTXHVWDQRQDXWRPDWLFOHWWHUUXOLQJE\¿OLQJDFXUUHQW)RUPApplication for Change in Accounting Method,
under the non-automatic change procedures in Rev. Proc. 2015-13 (or any successor), and this
UHYHQXHSURFHGXUH$)RUP¿OHGXQGHU5HY3URFRUDQ\VXFFHVVRUDQGWKLVUHYenue procedure for a non-automatic change request is hereinafter referred to as a “non-automatic
)RUP´$WD[SD\HU¿OLQJDQRQDXWRPDWLF)RUPPXVWVXEPLWWKHUHTXLUHGXVHUIHHZLWK
the completed Form 3115. SeeVHFWLRQDQG$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHIRULQIRUmation 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 2UGLQDULO\DWD[SD\HUPD\UHTXHVWRQO\RQHFKDQJHLQPHWKRGRIDFFRXQWLQJRQD)RUP
3115, Application for Change in Accounting Method,IWKHWD[SD\HUZDQWVWRUHTXHVWDFKDQJHLQ
PHWKRGRIDFFRXQWLQJIRUPRUHWKDQRQHXQUHODWHGLWHPRUVXEPHWKRGRIDFFRXQWLQJWKHWD[SD\HU
PXVWVXEPLWDVHSDUDWH)RUPIRUHDFKXQUHODWHGLWHPRUVXEPHWKRGH[FHSWLQFHUWDLQVLWXDWLRQVLQZKLFKWKH6HUYLFHVSHFL¿FDOO\SHUPLWVFHUWDLQXQUHODWHGFKDQJHVWREHLQFOXGHGRQDVLQJOH
)RUP)RUDQH[DPSOHRIVXFKDVLWXDWLRQsee section 15.03 of Rev. Proc. 2019-43, 2019-48
I.R.B. 1107 (or its successor).

Information required with
a Form 3115
Facts and other information

$VHSDUDWH)RUPDQGWKHUHIRUHDVHSDUDWHXVHUIHHSXUVXDQWWRVHFWLRQDQG$SSHQGL[
$ RI WKLV UHYHQXH SURFHGXUH PXVW EH VXEPLWWHG IRU HDFK WD[SD\HU DQG HDFK VHSDUDWH WUDGH RU
EXVLQHVVRIDWD[SD\HULQFOXGLQJDTXDOL¿HGVXEFKDSWHU6VXEVLGLDU\46XERUDVLQJOHPHPEHU
limited liability company (single-member LLC), requesting a change in method of accounting,
H[FHSWDVVSHFL¿FDOO\SHUPLWWHGRUUHTXLUHGLQJXLGDQFHSXEOLVKHGE\WKH6HUYLFHSee, e.g., section
15.07(4) of this revenue procedure.
.03
(1) Facts and other information requested on Form 3115 and in applicable revenue procedures.,QJHQHUDODWD[SD\HUUHTXHVWLQJDFKDQJHLQPHWKRGRIDFFRXQWLQJPXVW¿OHDFXUUHQW
)RUPXQOHVVWKHSURFHGXUHVDSSOLFDEOHWRWKHVSHFL¿FW\SHRIFKDQJHLQPHWKRGRIDFFRXQWing do not require a Form 3115 to be submitted.
7REHHOLJLEOHIRUDSSURYDORIWKHUHTXHVWHGFKDQJHLQPHWKRGRIDFFRXQWLQJWKHWD[SD\HUPXVW
provide all information requested on the Form 3115 and in its instructions and in Rev. Proc. 201513 (or any successor), and, if applicable, the automatic change request procedure. In addition,
WKH WD[SD\HU PXVW SURYLGH DOO LQIRUPDWLRQ UHTXHVWHG LQ WKH DSSOLFDEOH VHFWLRQV RI WKLV UHYHQXH
procedure, including a detailed and complete description of the item being changed and of the
WD[SD\HU¶VWUDGHVRUEXVLQHVVHVWKHWD[SD\HU¶VSUHVHQWDQGSURSRVHGPHWKRGIRUWKHLWHPEHLQJ
FKDQJHGLQIRUPDWLRQUHJDUGLQJZKHWKHUWKHWD[SD\HUKDVFODLPHGDQ\IHGHUDOWD[FUHGLWUHODWLQJ
WRWKHFRVWEHLQJFKDQJHGLQIRUPDWLRQUHJDUGLQJZKHWKHUWKHWD[SD\HULVXQGHUH[DPLQDWLRQRU

Bulletin No. 2021–1

45

January 4, 2021

before Appeals or a Federal court, and a summary of the computation of the net § 481(a) adjustPHQWDORQJZLWKDQH[SODQDWLRQRIWKHPHWKRGRORJ\XVHGWRGHWHUPLQHWKHDGMXVWPHQWVXI¿FLHQW
to demonstrate that the net § 481(a) adjustment is computed correctly.
)RUDQRQDXWRPDWLF)RUPRUDQDXWRPDWLFFKDQJHUHTXHVWVSHFL¿HGLQWKHLQVWUXFWLRQVIRU
OLQHRIWKH)RUPWKHWD[SD\HUPXVWDOVRLQFOXGHDIXOOH[SODQDWLRQRIWKHOHJDOEDVLVDQG
relevant authorities supporting the proposed method, and a detailed and complete description of
WKHIDFWVDQGH[SODQDWLRQRIKRZWKHODZDSSOLHVWRWKHWD[SD\HU¶VVLWXDWLRQ
)RUDQRQDXWRPDWLF)RUPWKHWD[SD\HUPXVWDOVRLQFOXGHDVWDWHPHQWRIWKHDSSOLFDQW¶V
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.
7KHWD[SD\HUPXVWSURYLGHWKHUHTXHVWHGLQIRUPDWLRQWREHHOLJLEOHIRUDSSURYDORIWKHUHTXHVWHGFKDQJHLQPHWKRGRIDFFRXQWLQJ7KHWD[SD\HUPD\EHUHTXLUHGWRSURYLGHLQIRUPDWLRQVSHFL¿F
WRWKHUHTXHVWHGFKDQJHLQPHWKRGRIDFFRXQWLQJVXFKDVDQDWWDFKHGVWDWHPHQW7KHWD[SD\HU
must provide all information relevant to the requested change in method of accounting, even if
QRWVSHFL¿FDOO\UHTXHVWHGLQFOXGLQJDQH[SODQDWLRQRIDOOPDWHULDOIDFWVUHOHYDQWWRWKHUHTXHVWHG
change in method of accounting.
See also sections 7.01(1) and 7.01(9) of this revenue procedure.
Statement of authorities
contrary to taxpayer’s
views

(2) Statement of contrary authorities.)RUDQRQDXWRPDWLF)RUPWKHWD[SD\HULVHQFRXUDJHGWRLQIRUPWKH$VVRFLDWHRI¿FHDERXWDQGGLVFXVVWKHLPSOLFDWLRQVRIDQ\DXWKRULW\EHlieved to be contrary to the proposed change in method of accounting, including statutes, court
decisions, regulations, notices, revenue rulings, revenue procedures, or announcements.
,IWKHWD[SD\HUGRHVQRWIXUQLVKHLWKHUFRQWUDU\DXWKRULWLHVRUDVWDWHPHQWWKDWQRQHH[LVWWKH
$VVRFLDWHRI¿FHPD\UHTXHVWVXEPLVVLRQRIFRQWUDU\DXWKRULWLHVRUDVWDWHPHQWWKDWQRQHH[LVW
)DLOXUHWRFRPSO\ZLWKWKLVUHTXHVWPD\UHVXOWLQWKH$VVRFLDWHRI¿FH¶VUHIXVDOWRLVVXHDFKDQJHLQ
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
EHFDXVHWKH\EHFRPHSDUWRIWKH$VVRFLDWHRI¿FH¶V¿OHDQGZLOOQRWEHUHWXUQHG

Analysis of material facts

(4) Analysis of material facts. When submitting any document with a Form 3115 or in a
VXSSOHPHQWDOOHWWHUWKHWD[SD\HUPXVWH[SODLQDQGSURYLGHDQDQDO\VLVRIDOOPDWHULDOIDFWVLQWKH
GRFXPHQW7KHWD[SD\HUPD\QRWPHUHO\LQFRUSRUDWHWKHGRFXPHQWE\UHIHUHQFH7KHDQDO\VLVRI
the facts must include their bearing on the requested change in method of accounting and must
specify the provisions that apply.

Same issue in an earlier
return under examination

(5) Information regarding whether same issue is in an earlier return under examination. A
)RUPPXVWVWDWHZKHWKHUWRWKHEHVWRIWKHNQRZOHGJHRIERWKWKHWD[SD\HUDQGWKHWD[SD\HU¶VUHSUHVHQWDWLYHVDQ\HDUOLHUUHWXUQRIWKHWD[SD\HURUDQ\UHWXUQRIDFXUUHQWRUIRUPHUFRQVROLGDWHGJURXSLQZKLFKWKHWD[SD\HULVRUZDVDPHPEHULQZKLFKWKHWD[SD\HUXVHGWKHPHWKRG
RIDFFRXQWLQJEHLQJFKDQJHGLVXQGHUH[DPLQDWLRQEHIRUH$SSHDOVRUEHIRUHD)HGHUDOFRXUWSee
Rev. Proc. 2015-13 (or any successor).

January 4, 2021

46

Bulletin No. 2021–1

Issue previously submitted
or currently pending

(6) Statement regarding prior requests for a change in method of accounting and other
pending requests.
(a) 2WKHUUHTXHVWVIRUDFKDQJHLQPHWKRGRIDFFRXQWLQJZLWKLQWKHSDVW¿YH\HDUV A Form
PXVWVWDWHWRWKHEHVWRIWKHNQRZOHGJHRIERWKWKHWD[SD\HUDQGWKHWD[SD\HU¶VUHSUHVHQWDWLYHVZKHWKHUWKHWD[SD\HUDUHODWHGSDUW\ZLWKLQWKHPHDQLQJRI†RU†ERUD
PHPEHURIDFXUUHQWRUIRUPHUDI¿OLDWHGJURXSRIZKLFKWKHWD[SD\HULVRUZDVDPHPEHUZLWKLQ
WKHPHDQLQJRI†RUDSUHGHFHVVRUUHTXHVWHGRUPDGHZLWKLQWKHSDVW¿YH\HDUVLQFOXGLQJ
WKH\HDURIWKHUHTXHVWHGFKDQJHRULVFXUUHQWO\¿OLQJDQ\UHTXHVWIRUDFKDQJHLQPHWKRGRI
accounting.
,IWKHVWDWHPHQWLVDI¿UPDWLYHIRUHDFKVHSDUDWHDQGGLVWLQFWWUDGHRUEXVLQHVVWKH)RUP
must 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
WKHWD[SD\HUEXWZDVQRWVLJQHGDQGUHWXUQHGWRWKH$VVRFLDWHRI¿FHRULIWKHFKDQJHZDVQRWPDGH
LQWKHUHTXHVWHG\HDURIFKDQJHWKH)RUPPXVWJLYHDQH[SODQDWLRQ
(b) Any other pending request(s).$)RUPPXVWVWDWHWRWKHEHVWRIWKHNQRZOHGJHRI
ERWKWKHWD[SD\HUDQGWKHWD[SD\HU¶VUHSUHVHQWDWLYHVZKHWKHUWKHWD[SD\HUDUHODWHGSDUW\ZLWKLQ
WKHPHDQLQJRI†RU†ERUDPHPEHURIDFXUUHQWRUIRUPHUDI¿OLDWHGJURXSRIZKLFK
WKHWD[SD\HULVRUZDVDPHPEHUZLWKLQWKHPHDQLQJRI†RUDSUHGHFHVVRUFXUUHQWO\KDYH
SHQGLQJ DQ\ UHTXHVW LQFOXGLQJ DQ\ FRQFXUUHQWO\ ¿OHG UHTXHVW IRU D OHWWHU UXOLQJ D FKDQJH LQ
method of accounting, or technical advice.
,IWKHVWDWHPHQWLVDI¿UPDWLYHWKH)RUPPXVWJLYHWKHQDPHVRIWKHWD[SD\HULGHQWL¿FDtion number(s), the type of request (letter ruling, request for change in method of accounting, or
UHTXHVWIRUWHFKQLFDODGYLFHDQGWKHVSHFL¿FLVVXHVLQHDFKVXFKUHTXHVW

Statement identifying
pending legislation

(7) Statement identifying pending legislation.$WWKHWLPHWKHWD[SD\HU¿OHVDQRQDXWRPDWLF)RUPWKHWD[SD\HUPXVWLGHQWLI\DQ\SHQGLQJOHJLVODWLRQWKDWPD\DIIHFWWKHSURSRVHG
FKDQJHLQPHWKRGRIDFFRXQWLQJ7KHWD[SD\HUDOVRPXVWQRWLI\WKH$VVRFLDWHRI¿FHLIDQ\VXFK
OHJLVODWLRQLVLQWURGXFHGDIWHUWKHUHTXHVWLV¿OHGEXWEHIRUHDFKDQJHLQPHWKRGRIDFFRXQWLQJ
letter ruling is issued.

Authorized representatives

(8) Authorized representatives. To appear before the Service in connection with a request for
DFKDQJHLQPHWKRGRIDFFRXQWLQJWKHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHPXVWEHDQDWWRUQH\
DFHUWL¿HGSXEOLFDFFRXQWDQWDQHQUROOHGDJHQWDQHQUROOHGDFWXDU\DSHUVRQZLWKD³/HWWHURI
$XWKRUL]DWLRQ´ DQ HPSOR\HH JHQHUDO SDUWQHU ERQD ¿GH RI¿FHU DGPLQLVWUDWRU WUXVWHH HWF DV
described in section 7.01(14) of this revenue procedure.

Power of attorney
and declaration of
representative

(9) Power of attorney and declaration of representative.$Q\DXWKRUL]HGUHSUHVHQWDWLYHZKHWKer or not enrolled to practice, must comply with Treasury Department Circular No. 230, which
provides the rules for practice before the Service, and the conference and practice requirements of
WKH6WDWHPHQWRI3URFHGXUDO5XOHVZKLFKSURYLGHWKHUXOHVIRUUHSUHVHQWLQJDWD[SD\HUEHIRUHWKH
Service. SeeVHFWLRQRIWKLVUHYHQXHSURFHGXUH$WD[SD\HUVKRXOGXVH)RUPPower of
Attorney and Declaration of RepresentativeWRSURYLGHWKHUHSUHVHQWDWLYH¶VDXWKRULW\

Tax Information
Authorization

(10) Tax Information Authorization.$WD[SD\HUPD\XVH)RUPTax Information AuthorizationWRDXWKRUL]HDQLQGLYLGXDOWRUHFHLYHDFRS\RIWKHWD[SD\HU¶VFKDQJHLQPHWKRGRI
DFFRXQWLQJOHWWHUUXOLQJDQGRWKHUUHODWHGFRUUHVSRQGHQFH,IWKHWD[SD\HUZLVKHVWRDXWKRUL]HD
FRUSRUDWLRQ¿UPRUJDQL]DWLRQRUSDUWQHUVKLSWRUHFHLYHWKHFRUUHVSRQGHQFHDQLQGLYLGXDOLGHQWL¿HGE\HLWKHUQDPHRUWLWOHPXVWEHVSHFL¿HGRQWKH)RUP$)RUPGRHVQRWDXWKRUL]H

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47

January 4, 2021

WKHWD[SD\HU¶VDSSRLQWHHWRDGYRFDWHWKHWD[SD\HU¶VSRVLWLRQRUWRRWKHUZLVHUHSUHVHQWWKHWD[SD\HU
before the Service.
Penalties of perjury
statement

(11) Penalties of perjury statement
(a) Format of penalties of perjury statement. A Form 3115, and any change to a Form 3115
VXEPLWWHGDWDODWHUWLPHPXVWEHDFFRPSDQLHGE\WKHIROORZLQJGHFODUDWLRQ“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.$)RUPPXVWEHVLJQHGE\RURQEHKDOIRIWKHWD[SD\HUUHTXHVWLQJWKHFKDQJHE\DQLQGLYLGXDOZKRKDVSHUVRQDONQRZOHGJHRIWKHIDFWVRIDQGDXWKRULW\WRELQG
WKHWD[SD\HULQVXFKPDWWHUV)RUH[DPSOHDQRI¿FHUPXVWVLJQRQEHKDOIRIDFRUSRUDWLRQDJHQeral partner on behalf of a state law partnership, a member-manager on behalf of a limited liability
FRPSDQ\DWUXVWHHRQEHKDOIRIDWUXVWRUDQLQGLYLGXDOWD[SD\HURQEHKDOIRIDVROHSURSULHWRUVKLS
,IWKHWD[SD\HULVDPHPEHURIDFRQVROLGDWHGJURXSD)RUPVKRXOGEHVXEPLWWHGRQEHKDOIRI
WKHWD[SD\HUE\WKHFRPPRQSDUHQWDQGPXVWEHVLJQHGE\DGXO\DXWKRUL]HGRI¿FHURIWKHFRPPRQ
parent. Refer to the signature requirements set forth in the instructions for the current Form 3115
regarding those who are to sign. See also section 6.02(8) of Rev. Proc. 2015-13 (or any successor).
(c) Signature by preparer.$GHFODUDWLRQRISUHSDUHURWKHUWKDQWKHWD[SD\HULVEDVHGRQDOO
LQIRUPDWLRQRIZKLFKWKHSUHSDUHUKDVDQ\NQRZOHGJH

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
DQGRWKHUUHODWHGFRUUHVSRQGHQFHWRWKHWD[SD\HUDQGFRSLHVWRWKHWD[SD\HU¶VUHSUHVHQWDWLYHLI
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. 7KH$VVRFLDWHRI¿FHVRUGLQDULO\SURFHVVQRQDXWRPDWLF
)RUPVLQRUGHURIWKHGDWHUHFHLYHG$WD[SD\HUZLWKDFRPSHOOLQJQHHGWRKDYHDQRQDXWRPDWLF)RUPSURFHVVHGRQDQH[SHGLWHGEDVLVPD\UHTXHVWH[SHGLWHGKDQGOLQJSee section
RIWKLVUHYHQXHSURFHGXUHIRUSURFHGXUHVUHJDUGLQJH[SHGLWHGKDQGOLQJ

Requesting form of any
document related to Form
3115 provided to taxpayer
or taxpayer’s authorized
representative

(3) To request the receipt of the change in method of accounting letter ruling or any other
correspondence related to a Form 3115 by fax, electronic facsimile, or encrypted email attachment. ,IWKHWD[SD\HUZDQWVDFRS\RIWKHFKDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJRUDQ\
other correspondence related to a Form 3115, such as a request for additional information, to be
SURYLGHGWRWKHWD[SD\HURUWKHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHE\ID[HOHFWURQLFIDFVLPLOH
RUHQFU\SWHGHPDLODWWDFKPHQWWKHWD[SD\HUPXVWVXEPLWDZULWWHQUHTXHVWSUHIHUDEO\DVSDUWRI
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 Service has the discretion to determine the form in which
LWZLOOFRUUHVSRQGZLWKWKHWD[SD\HUEXWZLOOJHQHUDOO\FRPSO\ZLWKDWD[SD\HU¶VUHTXHVWIRUD
particular form.

January 4, 2021

48

Bulletin No. 2021–1

,I WKH WD[SD\HU UHTXHVWV WR KDYH FRUUHVSRQGHQFH UHODWLQJ WR WKH )RUP  SURYLGHG E\ ID[
RUHOHFWURQLFIDFVLPLOHWRWKHWD[SD\HURUWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHWKHUHTXHVWPXVW
FRQWDLQWKHID[QXPEHURIWKHWD[SD\HURUWKHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHWRZKRPWKH
correspondence is to be provided.
$ GRFXPHQW RWKHU WKDQ WKH FKDQJH LQ PHWKRG RI DFFRXQWLQJ OHWWHU UXOLQJ ZLOO EH ID[HG E\ D
EUDQFKUHSUHVHQWDWLYH$FKDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJPD\EHID[HGE\HLWKHUD
branch representative or the Disclosure and Litigation Support Branch of the Legal Processing
'LYLVLRQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO3URFHGXUHDQG$GPLQLVWUDWLRQ&&3$/3''6
,IWKHWD[SD\HUUHTXHVWVGRFXPHQWVE\HQFU\SWHGHPDLODWWDFKPHQWWKHUHTXHVWPXVWVSHFLI\
ZKLFKHPDLOHQFU\SWLRQPHWKRGLVWREHXVHGDQGLIWKHWD[SD\HUKDVQRWDOUHDG\SURYLGHGWKH
appropriate memorandums of understanding (MOUs) to use encrypted email attachments, must
include those MOUs. See section 9.05(3) of this revenue procedure for acceptable email encryption methods and procedures.
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. 7KHWD[SD\HUPXVWFRPSOHWHWKHDSSURSULDWHOLQHRQWKH)RUP
3115 to request a conference, or must request a conference in a later written communication, if an
DGYHUVHUHVSRQVHLVFRQWHPSODWHGE\WKH$VVRFLDWHRI¿FHSee section 11.03(1) of Rev. Proc. 201513 (or any successor), and sections 10.01 and 10.02 of this revenue procedure.

Submitting non-automatic
Forms 3115

.05 Non-automatic Forms 3115 may be submitted by mail, by electronic facsimile, or by encrypted email attachment.
(1) Submission by mail.$WD[SD\HUVXEPLWWLQJDQRQDXWRPDWLF)RUPE\PDLOVKRXOG
submit the original to the appropriate address below.
,IDSULYDWHGHOLYHU\VHUYLFHLVQRWXVHGDWD[SD\HULQFOXGLQJDQH[HPSWRUJDQL]DWLRQPXVWVHQG
WKHRULJLQDOFRPSOHWHG)RUPDQGWKHUHTXLUHGXVHUIHHWR
Internal Revenue Service
Attn: CC:PA:LPD:TSS
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044
,IDSULYDWHGHOLYHU\VHUYLFHLVXVHGDWD[SD\HULQFOXGLQJDQH[HPSWRUJDQL]DWLRQPXVWVHQGWKH
RULJLQDOFRPSOHWHG)RUPDQGWKHUHTXLUHGXVHUIHHWR
Internal Revenue Service
Attn: CC:PA:LPD:TSS
Room 5336
1111 Constitution Ave., NW
Washington, DC 20224

Bulletin No. 2021–1

49

January 4, 2021

)RUWD[SD\HUVLQFOXGLQJDQH[HPSWRUJDQL]DWLRQWKHRULJLQDOFRPSOHWHG)RUPDQGWKH
UHTXLUHGXVHUIHHPD\EHKDQGGHOLYHUHGEHWZHHQWKHKRXUVRIDPDQGSPWRWKHFRXULHU¶VGHVNDW&RQVWLWXWLRQ$YH1::DVKLQJWRQ'&$UHFHLSWZLOOEHJLYHQDWWKHFRXULHU¶V
GHVN7KHSDFNDJHVKRXOGEHDGGUHVVHGWR
Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
(2) Submission by electronic facsimile. 7D[SD\HUVDQGWKHLUUHSUHVHQWDWLYHVDUHHQFRXUDJHGWR
use a secure electronic facsimile service for transmitting requests for advice. To use the secure elecWURQLFIDFVLPLOHPHWKRG¿UVWVXEPLWWKHIXOOXVHUIHHSD\PHQWVHWIRUWKLQ$SSHQGL[$RIWKLVUHYHQXH
procedure through www.pay.gov, and include a copy of the receipt for this payment with the request.
7UDQVPLWWKH)RUPDORQJZLWKDFRYHUVKHHWWRWKHVHFXUHHOHFWURQLFIDFVLPLOHOLQH(877)
773-4950.
(3) Submission by encrypted email attachment.7KHUHDUHPRUHULVNVDVVRFLDWHGZLWKHPDLO
WKDQZLWKHOHFWURQLFIDFVLPLOHVXFKDVWKHSRVVLELOLW\WKDWVHQVLWLYHWD[SD\HULQIRUPDWLRQFRXOGEH
LQWHUFHSWHG$FFRUGLQJO\WKH6HUYLFHHQFRXUDJHVWD[SD\HUVWRXVHDVHFXUHHOHFWURQLFIDFVLPLOH
service for transmitting requests for advice. As an alternative, this section provides procedures for
using encrypted email attachments for transmitting a non-automatic Form 3115.
7D[SD\HUVXVLQJHQFU\SWHGHPDLODWWDFKPHQWVPD\FKRRVHWRXVHDFRPSUHVVLRQXWLOLW\FRPpatible with SecureZIP (note that many open-source utilities are not compatible with SecureZIP),
$GREH$FUREDW3URSDVVZRUGHQFU\SWLRQRU0LFURVRIW2I¿FH3URWHFW'RFXPHQWWRHQFU\SW
DQGVHQGSDVVZRUGSURWHFWHG¿OHV%HFDXVHWKHVHSURJUDPVGRQRWHQFU\SWWKHVXEMHFWOLQHRUERG\
RIDQHPDLORUWKH¿OHQDPHRIWKHDWWDFKPHQWDOOVHQVLWLYHWD[SD\HULQIRUPDWLRQLQFOXGLQJWKH
QDPHRIWKHWD[SD\HUVKRXOGEHLQFOXGHGRQO\LQWKHHQFU\SWHGDWWDFKPHQW
These programs require that a sender create a password for the recipient to use to decrypt the
attachments. The password should never be sent in the same email as the encrypted attachment.
,QVWHDGLWVKRXOGEHSURYLGHGWRWKH6HUYLFHLQDVHSDUDWHHPDLOZLWKDVXEMHFWOLQHWKDWPDNHVLW
easy to connect the password to the encrypted email.
7RXVHHQFU\SWHGHPDLODWWDFKPHQWV¿UVWVXEPLWWKHIXOOXVHUIHHSD\PHQWVHWIRUWKLQ$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHWKURXJKZZZSD\JRYDQGLQFOXGHDFRS\RIWKHUHFHLSWIRUWKLV
payment with the request.
$)RUPWUDQVPLWWHGWKURXJKHPDLOPXVWEHDFFRPSDQLHGE\WZR028VWKH028LQ$SSHQGL[+RIWKLVUHYHQXHSURFHGXUHDFNQRZOHGJLQJWKHULVNVRIXVLQJHPDLOWRWUDQVPLWVHQVLWLYH
WD[SD\HULQIRUPDWLRQDQGWKHDSSURSULDWH028LQ$SSHQGL[,DJUHHLQJWRWKHWHUPVIRUXVLQJWKH
FKRVHQPHWKRGRIHQFU\SWLRQWRUHFHLYHVHQVLWLYHWD[SD\HULQIRUPDWLRQ7KHVH028VPXVWEHVLJQHG
E\WKHWD[SD\HUQRWWKHWD[SD\HU¶VUHSUHVHQWDWLYHLQDPDQQHUFRQVLVWHQWZLWKVHFWLRQRI
this revenue procedure. A Counsel representative will countersign and return the second MOU to the
requester prior to transmitting any other information by encrypted email attachments.
7UDQVPLWWKH)RUPWRWKHIROORZLQJHPDLODGGUHVV[email protected].

January 4, 2021

50

Bulletin No. 2021–1

Submitting automatic
Forms 3115

.06 Automatic change request. The duplicate copy of an automatic Form 3115 generally is
VXEPLWWHGE\PDLO$WD[SD\HUWKDWLV¿OLQJDQDXWRPDWLF)RUPXQGHUWKHSURYLVLRQVRI5HY
Proc. 2015-23, 2015-5 I.R.B. 419, may alternatively submit the duplicate copy of the Form 3115
E\ID[
(1) Submission by mail. ,IWKHDXWRPDWLFFKDQJHUHTXHVWSURFHGXUHUHTXLUHVDWD[SD\HUWR¿OHD
duplicate copy of the completed Form 3115 for an automatic change request, and if a private deOLYHU\VHUYLFHLVQRWXVHGVHQGWKHGXSOLFDWHFRS\RIWKHDXWRPDWLFFKDQJHUHTXHVW)RUPWR
Internal Revenue Service
Ogden, UT 84201
M/S 6111
If a private delivery service is used, send the duplicate copy of the automatic change request
)RUPWR
Internal Revenue Service
1973 N. Rulon White Blvd.
Ogden, UT 84201
Attn: M/S 6111
(2) Submission by fax.7D[SD\HUVVXEPLWWLQJWKHGXSOLFDWHFRS\RIDQDXWRPDWLF)RUPE\
ID[VKRXOGGRVRWRWKHIROORZLQJID[QXPEHU(844) 249-8134.
7KHVXEPLVVLRQVKRXOGLQFOXGHDFRYHUVKHHWZLWKWKHIROORZLQJLQIRUPDWLRQ
D6XEMHFW³)RUP´
E6HQGHU¶VQDPHWLWOHSKRQHQXPEHUDQGDGGUHVV
F7D[SD\HU¶VQDPH
(d) Date
H1XPEHURISDJHVID[HGLQFOXVLYHRIFRYHUVKHHW
$WD[SD\HUVKRXOGQRWLQFOXGHVHQVLWLYHLQIRUPDWLRQRQWKHFRYHUVKHHWVXFKDVWKHWD[SD\HU¶V
(PSOR\HU,GHQWL¿FDWLRQ1XPEHURU6RFLDO6HFXULW\1XPEHU

Technical Services Support
Branch receives, initially
controls, and refers
the Form 3115 to the
DSSURSULDWH$VVRFLDWHRI¿FH

.07 A non-automatic Form 3115 is received and controlled by the Technical Services Support
Branch, Legal Processing Division of the Associate Chief Counsel (Procedure and AdministraWLRQ&&3$/3'766LIWKHUHTXLUHGXVHUIHHLVVXEPLWWHGZLWKWKH)RUP2QFHFRQWUROOHG
WKH)RUPLVIRUZDUGHGWRWKHDSSURSULDWH$VVRFLDWHRI¿FHIRUDVVLJQPHQWDQGSURFHVVLQJ

Additional information

.08

Reply period

(1) Reply period.

Bulletin No. 2021–1

51

January 4, 2021

(a) Non-automatic Form 3115 – 21-day rule. In general, for a non-automatic Form 3115, adGLWLRQDOLQIRUPDWLRQUHTXHVWHGE\WKH$VVRFLDWHRI¿FHDQGDGGLWLRQDOLQIRUPDWLRQIXUQLVKHGWRWKH
$VVRFLDWHRI¿FHE\WHOHSKRQHPXVWEHIXUQLVKHGLQZULWLQJE\PDLOID[RUHPDLOZLWKLQFDOHQGDUGD\VIURPWKHGDWHRIWKHLQIRUPDWLRQUHTXHVW7KH$VVRFLDWHRI¿FHPD\LPSRVHDVKRUWHUUHSO\
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, adGLWLRQDOLQIRUPDWLRQUHTXHVWHGE\WKH$VVRFLDWHRI¿FHDQGDGGLWLRQDOLQIRUPDWLRQIXUQLVKHGWRWKH
$VVRFLDWHRI¿FHE\WHOHSKRQHPXVWEHIXUQLVKHGLQZULWLQJE\PDLOID[RUHPDLOZLWKLQFDOHQGDUGD\VIURPWKHGDWHRIWKHLQIRUPDWLRQUHTXHVW7KH$VVRFLDWHRI¿FHPD\LPSRVHDVKRUWHUUHSO\
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
WKH$VVRFLDWHRI¿FH
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
H[FHHGFDOHQGDUGD\VWRIXUQLVKLQIRUPDWLRQPD\EHJUDQWHGWRDWD[SD\HU$Q\UHTXHVWIRUDQ
H[WHQVLRQRIWLPHPXVWEHPDGHLQZULWLQJDQGVXEPLWWHGEHIRUHWKHHQGRIWKHRULJLQDOGD\
SHULRG ,I XQXVXDO FLUFXPVWDQFHV FORVH WR WKH HQG RI WKH GD\ SHULRG PDNH D ZULWWHQ UHTXHVW
LPSUDFWLFDOWKHWD[SD\HUVKRXOGQRWLI\WKH$VVRFLDWHRI¿FHZLWKLQWKHGD\SHULRGWKDWWKHUHLV
DSUREOHPDQGWKDWWKHZULWWHQUHTXHVWIRUH[WHQVLRQZLOOEHSURYLGHGVKRUWO\$QH[WHQVLRQRIWKH
GD\SHULRGZLOOEHJUDQWHGRQO\LIDSSURYHGE\DEUDQFKUHYLHZHU$QH[WHQVLRQRIWKHGD\
SHULRGRUGLQDULO\ZLOOQRWEHJUDQWHGWRIXUQLVKLQIRUPDWLRQUHTXHVWHGRQ)RUP7KHWD[SD\HU
ZLOOEHWROGSURPSWO\DQGODWHULQZULWLQJRIWKHDSSURYDORUGHQLDORIWKHUHTXHVWHGH[WHQVLRQ,I
WKHH[WHQVLRQUHTXHVWLVGHQLHGWKHUHLVQRULJKWRIDSSHDO
(b) Automatic change request. For an automatic change request, an additional period, not to
H[FHHGFDOHQGDUGD\VWRIXUQLVKLQIRUPDWLRQPD\EHJUDQWHGWRDWD[SD\HU$Q\UHTXHVWIRUDQ
H[WHQVLRQRIWLPHPXVWEHPDGHLQZULWLQJDQGVXEPLWWHGEHIRUHWKHHQGRIWKHRULJLQDOGD\
SHULRG ,I XQXVXDO FLUFXPVWDQFHV FORVH WR WKH HQG RI WKH GD\ SHULRG PDNH D ZULWWHQ UHTXHVW
LPSUDFWLFDOWKHWD[SD\HUVKRXOGQRWLI\WKH$VVRFLDWHRI¿FHZLWKLQWKHGD\SHULRGWKDWWKHUH
LVDSUREOHPDQGWKDWWKHZULWWHQUHTXHVWIRUH[WHQVLRQZLOOEHFRPLQJVRRQ$QH[WHQVLRQRIWKH
GD\SHULRGZLOOEHJUDQWHGRQO\LIDSSURYHGE\DEUDQFKUHYLHZHU$QH[WHQVLRQRIWKHGD\
SHULRGRUGLQDULO\ZLOOQRWEHJUDQWHGWRIXUQLVKLQIRUPDWLRQUHTXHVWHGRQ)RUP7KHWD[SD\HU
ZLOOEHWROGSURPSWO\RIWKHDSSURYDORUGHQLDORIWKHUHTXHVWHGH[WHQVLRQ,IWKHH[WHQVLRQUHTXHVW
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 subPLWWHGWRWKH$VVRFLDWHRI¿FHPXVWEHDFFRPSDQLHGE\WKHIROORZLQJGHFODUDWLRQ³Under 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
VKRXOGDOVRLQFOXGHWKHWD[SD\HU¶VQDPHDQGWKHFDVHFRQWUROQXPEHUDQGWKHQDPHRI¿FHV\PEROVDQGURRPQXPEHURIWKH$VVRFLDWHRI¿FHUHSUHVHQWDWLYHZKRUHTXHVWHGWKHLQIRUPDWLRQ7KH
$VVRFLDWHRI¿FHUHSUHVHQWDWLYHFDQSURYLGHWKHODWWHULQIRUPDWLRQWRWKHWD[SD\HU

January 4, 2021

52

Bulletin No. 2021–1

Transmitting request and
submitting additional
information by fax,
electronic facsimile, or
encrypted email attachment

(5) Transmitting information request and additional information. To facilitate prompt acWLRQRQDFKDQJHLQPHWKRGRIDFFRXQWLQJUXOLQJUHTXHVWWD[SD\HUVPD\UHTXHVWWKDWWKH$VVRFLDWH
RI¿FHUHTXHVWDGGLWLRQDOLQIRUPDWLRQE\ID[HOHFWURQLFIDFVLPLOHRUHQFU\SWHGHPDLODWWDFKPHQW
See section 9.04(3) of this revenue procedure.
7D[SD\HUVPD\DOVRVXEPLWDGGLWLRQDOLQIRUPDWLRQE\ID[HOHFWURQLFIDFVLPLOHRUHQFU\SWHG
HPDLODWWDFKPHQWDVVRRQDVWKHLQIRUPDWLRQLVDYDLODEOH7KH$VVRFLDWHRI¿FHUHSUHVHQWDWLYHZKR
UHTXHVWVDGGLWLRQDOLQIRUPDWLRQFDQSURYLGHDID[RUHOHFWURQLFIDFVLPLOHQXPEHURUHPDLODGGUHVV
WRZKLFKWKHLQIRUPDWLRQFDQEHID[HG

Submitting additional
information by mail

(6) Transmitting additional information by mail.
(a) Address if private delivery service is not used. For a request for change in method of acFRXQWLQJXQGHUWKHMXULVGLFWLRQRIWKH$VVRFLDWH&KLHI&RXQVHO,QFRPH7D[DQG$FFRXQWLQJLID
SULYDWHGHOLYHU\VHUYLFHLVQRWXVHGWKHDGGLWLRQDOLQIRUPDWLRQVKRXOGEHVHQWWR
Internal Revenue Service
ADDITIONAL INFORMATION
$WWQ>1DPHRI¿FHV\PEROVDQGURRPQXPEHURIWKH$VVRFLDWH
RI¿FHUHSUHVHQWDWLYHZKRUHTXHVWHGWKHLQIRUPDWLRQ@
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
XVHGWKHDGGLWLRQDOLQIRUPDWLRQVKRXOGEHVHQWWR
Internal Revenue Service
ADDITIONAL INFORMATION
$WWQ>1DPHRI¿FHV\PEROVDQGURRPQXPEHURIWKH$VVRFLDWH
RI¿FHUHSUHVHQWDWLYHZKRUHTXHVWHGWKHLQIRUPDWLRQ@
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 acFRXQWLQJLIDSULYDWHGHOLYHU\VHUYLFHLVXVHGWKHDGGLWLRQDOLQIRUPDWLRQVKRXOGEHVHQWWR
Internal Revenue Service
ADDITIONAL INFORMATION
$WWQ>1DPHRI¿FHV\PEROVDQGURRPQXPEHURIWKH$VVRFLDWH
RI¿FHUHSUHVHQWDWLYHZKRUHTXHVWHGWKHLQIRUPDWLRQ@
1111 Constitution Ave., NW
Washington, DC 20224

Bulletin No. 2021–1

53

January 4, 2021

Failure to timely submit
additional information to
DQ$VVRFLDWHRI¿FH

(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
LQIRUPDWLRQLVQRWIXUQLVKHGWRWKH$VVRFLDWHRI¿FHZLWKLQWKHUHSO\SHULRGWKH)RUPZLOO
QRWEHSURFHVVHGDQGWKHFDVHZLOOEHFORVHG7KHWD[SD\HURUDXWKRUL]HGUHSUHVHQWDWLYHZLOOEHVR
QRWL¿HGLQZULWLQJ
(b) Automatic change request. In the case of an automatic change request, if the required
LQIRUPDWLRQLVQRWIXUQLVKHGWRWKH$VVRFLDWHRI¿FHZLWKLQWKHUHSO\SHULRGWKHUHTXHVWGRHVQRW
TXDOLI\IRUWKHDXWRPDWLFFKDQJHUHTXHVWSURFHGXUH,QVXFKDFDVHWKH$VVRFLDWHRI¿FHZLOOQRWLI\
WKHWD[SD\HUWKDWFRQVHQWWRPDNHWKHFKDQJHLQPHWKRGRIDFFRXQWLQJLVQRWJUDQWHG
(c) Submitting the additional information at a later date.,IWKHWD[SD\HUZDQWVWRVXEPLW
WKHDGGLWLRQDOLQIRUPDWLRQDWDODWHUGDWHWKHWD[SD\HUPXVWVXEPLWLWZLWKDQHZFRPSOHWHG)RUP
3115 (and user fee, if applicable) for a year of change for which such new Form 3115 is timely
¿OHGXQGHUWKHDSSOLFDEOHFKDQJHLQPHWKRGRIDFFRXQWLQJSURFHGXUH

Circumstances in which the
taxpayer must notify the
$VVRFLDWHRI¿FH

.09 )RUDQRQDXWRPDWLF)RUPWKHWD[SD\HUPXVWSURPSWO\QRWLI\WKH$VVRFLDWHRI¿FHLI
DIWHUWKH)RUPLV¿OHGEXWEHIRUHDFKDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJLVLVVXHGWKH
WD[SD\HUNQRZVWKDW²
D¿HOGRI¿FHKDVVWDUWHGDQH[DPLQDWLRQRIWKHSUHVHQWRUSURSRVHGDFFRXQWLQJ
D¿HOGRI¿FHKDVVWDUWHGDQH[DPLQDWLRQRIWKHSURSRVHG\HDURIFKDQJH
(3) legislation that may affect the change in method of accounting has been introduced, see
VHFWLRQRIWKLVUHYHQXHSURFHGXUHRU
DQRWKHUOHWWHUUXOLQJUHTXHVWLQFOXGLQJDQRWKHU)RUPKDVEHHQVXEPLWWHGE\WKHWD[SD\HUDUHODWHGSDUW\ZLWKLQWKHPHDQLQJRI†RU†ERUDPHPEHURIDQDI¿OLDWHG
JURXSRIZKLFKWKHWD[SD\HULVDPHPEHUZLWKLQWKHPHDQLQJRI†

Determines if proposed
method of accounting
FDQEHPRGL¿HGWRREWDLQ
favorable letter ruling

.10 For a non-automatic Form 3115, if a less than fully favorable change in method of acFRXQWLQJOHWWHUUXOLQJLVLQGLFDWHGWKHEUDQFKUHSUHVHQWDWLYHZLOOWHOOWKHWD[SD\HUZKHWKHUPLQRU
changes in the proposed method of accounting would bring about a favorable ruling. The branch
UHSUHVHQWDWLYHZLOOQRWVXJJHVWSUHFLVHFKDQJHVWKDWPDWHULDOO\DOWHUDWD[SD\HU¶VSURSRVHGPHWKRG
of accounting.

Near the completion of
processing the Form 3115,
advises the taxpayer if the
$VVRFLDWHRI¿FHZLOOUXOH
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
FKDQJH LQ PHWKRG RI DFFRXQWLQJ WKH WD[SD\HU ZLOO EH RIIHUHG WKH RSSRUWXQLW\ WR ZLWKGUDZ WKH
Form 3115. SeeVHFWLRQRIWKLVUHYHQXHSURFHGXUH,IZLWKLQFDOHQGDUGD\VRIWKHQRWL¿FDWLRQE\WKHEUDQFKUHSUHVHQWDWLYHWKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHGRHVQRWQRWLI\WKH
branch representative of a decision to withdraw the Form 3115, the adverse change in method of
DFFRXQWLQJOHWWHUUXOLQJZLOOEHLVVXHGXQOHVVDQH[WHQVLRQLVJUDQWHGSee section 15.10 for information regarding refunds of user fees.

January 4, 2021

54

Bulletin No. 2021–1

Non-automatic Form 3115
may be withdrawn or
$VVRFLDWHRI¿FHPD\GHFOLQH
to issue a change in method
of accounting letter ruling

.12

In general

(1) In general.$WD[SD\HUPD\ZLWKGUDZDQRQDXWRPDWLF)RUPDWDQ\WLPHEHIRUHWKH
FKDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJLVVLJQHGE\WKH$VVRFLDWHRI¿FH7KH)RUP
correspondence, and any documents relating to the Form 3115 that is withdrawn or for which the
$VVRFLDWHRI¿FHGHFOLQHVWRLVVXHDOHWWHUUXOLQJZLOOQRWEHUHWXUQHGWRWKHWD[SD\HUSee section
9.03(3) of this revenue procedure. In appropriate cases, the Service may publish its conclusions in
a revenue ruling or revenue procedure.

1RWL¿FDWLRQRIDSSURSULDWH
6HUYLFHRI¿FLDO

(2) 1RWL¿FDWLRQRIDSSURSULDWH6HUYLFHRI¿FLDO,IDWD[SD\HUZLWKGUDZVRUWKH$VVRFLDWHRI¿FHGHFOLQHVWRJUDQWIRUDQ\UHDVRQDUHTXHVWWRFKDQJHDPHWKRGRIDFFRXQWLQJWKH$VVRFLDWH
RI¿FHZLOOQRWLI\LQZULWLQJWKHDSSURSULDWH6HUYLFHRI¿FLDOLQWKHRSHUDWLQJGLYLVLRQWKDWKDVH[DPLQDWLRQMXULVGLFWLRQRIWKHWD[SD\HU¶VWD[UHWXUQDQGWKH0DQDJHURIWKH0HWKRGVRI$FFRXQWLQJ
DQG7LPLQJ3UDFWLFH1HWZRUNDQGPD\JLYHLWVYLHZVRQWKHLVVXHVLQWKHUHTXHVWWRWKH6HUYLFH
RI¿FLDOWRFRQVLGHULQDQ\ODWHUH[DPLQDWLRQRIWKHUHWXUQ
,IWKHZULWWHQQRWL¿FDWLRQWRWKH6HUYLFHRI¿FLDOSURYLGHVPRUHWKDQWKHIDFWWKDWWKHUHTXHVWZDV
ZLWKGUDZQDQGWKH$VVRFLDWHRI¿FHZDVWHQWDWLYHO\DGYHUVHRUWKDWWKH$VVRFLDWHRI¿FHGHFOLQHVWR
grant a change in method of accounting, the memorandum may constitute Chief Counsel Advice,
DVGH¿QHGLQ†LDQGPD\EHVXEMHFWWRGLVFORVXUHXQGHU†

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

.137KHWD[SD\HURUWKHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHPD\REWDLQLQIRUPDWLRQUHJDUGLQJ
the status of a non-automatic Form 3115 by calling the person whose name and telephone number
DUHVKRZQRQWKHDFNQRZOHGJHPHQWRIUHFHLSWRIWKH)RUP

Service is not bound by
informal opinion

.147KH6HUYLFHZLOOQRWEHERXQGE\DQ\LQIRUPDORSLQLRQH[SUHVVHGE\WKHEUDQFKUHSUHVHQWDtive 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
LQSDUDJUDSK$ERI$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHIRULGHQWLFDOFKDQJHVLQPHWKRG
RIDFFRXQWLQJWKH$VVRFLDWHRI¿FHJHQHUDOO\ZLOOLVVXHDVLQJOHOHWWHUUXOLQJRQEHKDOIRIDOODSSOLcants 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 ,I WZR RU PRUH LWHPV RU VXEPHWKRGV RI DFFRXQWLQJ DUH LQWHUUHODWHG WKH$VVRFLDWH RI¿FH
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 2UGLQDULO\ IRU D QRQDXWRPDWLF )RUP  WKH &RPPLVVLRQHU¶VSHUPLVVLRQ WR FKDQJH D
WD[SD\HU¶VPHWKRGRIDFFRXQWLQJLVVHWIRUWKLQDOHWWHUUXOLQJRULJLQDODQGD&RQVHQW$JUHHPHQW
FRS\,IWKHWD[SD\HUDJUHHVWRWKHWHUPVDQGFRQGLWLRQVFRQWDLQHGLQWKHFKDQJHLQPHWKRGRI
DFFRXQWLQJOHWWHUUXOLQJWKHWD[SD\HUPXVWVLJQDQGGDWHWKH&RQVHQW$JUHHPHQWFRS\RIWKHOHWWHU
ruling in the appropriate space. The Consent Agreement must be signed by an individual with
DXWKRULW\WRELQGWKHWD[SD\HULQVXFKPDWWHUV7KH&RQVHQW$JUHHPHQWFRS\PXVWQRWEHVLJQHG
E\WKHWD[SD\HU¶VUHSUHVHQWDWLYH7KHVLJQHGFRS\RIWKHOHWWHUUXOLQJZLOOFRQVWLWXWHDQDJUHHPHQW
(Consent Agreement) within the meaning of Treas. Reg. § 1.481-4(b). The signed Consent AgreePHQWFRS\RIWKHOHWWHUUXOLQJPXVWEHUHWXUQHGWRWKH$VVRFLDWHRI¿FHZLWKLQFDOHQGDUGD\VRI
the date of the letter ruling. In addition, a copy of the signed Consent Agreement generally must

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55

January 4, 2021

EHDWWDFKHGWRWKHWD[SD\HU¶VLQFRPHWD[UHWXUQIRUWKH\HDURIFKDQJHSee section 11.03(2)(a) of
5HY3URFRUDQ\VXFFHVVRU$WD[SD\HU¿OLQJLWVUHWXUQHOHFWURQLFDOO\VKRXOGDWWDFKWKH
&RQVHQW$JUHHPHQWDVD3')¿OHQDPHG³)RUP&RQVHQW´,IWKHWD[SD\HUKDV¿OHGLWVLQFRPH
WD[UHWXUQIRUWKH\HDURIFKDQJHEHIRUHWKHOHWWHUUXOLQJKDVEHHQUHFHLYHGDQGWKH&RQVHQW$JUHHment has been signed and returned, the copy of the signed Consent Agreement should be attached
WRWKHDPHQGHGUHWXUQIRUWKH\HDURIFKDQJHWKDWWKHWD[SD\HU¿OHVWRLPSOHPHQWWKHFKDQJHLQ
method of accounting.
$WD[SD\HUPXVWVHFXUHWKHFRQVHQWRIWKH&RPPLVVLRQHUEHIRUHFKDQJLQJDPHWKRGRIDFFRXQWLQJIRU)HGHUDOLQFRPHWD[SXUSRVHVSee Treas. Reg. § 1.446-1(e)(2)(i). For a change in method
RIDFFRXQWLQJUHTXHVWHGRQDQRQDXWRPDWLF)RUPDWD[SD\HUKDVVHFXUHGWKHFRQVHQWRI
WKH&RPPLVVLRQHUZKHQWKHWD[SD\HUWLPHO\VLJQVDQGUHWXUQVWKH&RQVHQW$JUHHPHQWFRS\RI
WKHOHWWHUUXOLQJIURPWKH$VVRFLDWHRI¿FHJUDQWLQJSHUPLVVLRQWRPDNHWKHFKDQJHLQPHWKRGRI
accounting and otherwise complies with Rev. Proc. 2015-13 (or any successor).
$ WD[SD\HU WKDW WLPHO\ ¿OHV D QRQDXWRPDWLF )RUP  DQG WDNHV WKH UHTXHVWHG FKDQJH LQ
PHWKRGRIDFFRXQWLQJLQWRDFFRXQWLQLWVIHGHUDOLQFRPHWD[UHWXUQIRUWKH\HDURIFKDQJHDQG
DQ\VXEVHTXHQWWD[DEOH\HDUSULRUWRUHFHLYLQJDOHWWHUUXOLQJJUDQWLQJFRQVHQWIRUWKDWFKDQJH
has made a change in method of accounting without obtaining the consent of the Commissioner
DVUHTXLUHGE\†HDQ³XQDXWKRUL]HGFKDQJH´$VSURYLGHGLQVHFWLRQRI5HY3URF
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 unauthoUL]HGFKDQJH+RZHYHUWKH&RPPLVVLRQHU¶VFRQVHQWLVVXHGVXEVHTXHQWWRWKHUHTXHVWHG\HDURI
FKDQJHDSSOLHVEDFNWRWKH\HDURIFKDQJHDQGDQ\VXEVHTXHQWWD[DEOH\HDUDVRIWKHGDWHRIWKH
OHWWHUUXOLQJJUDQWLQJFRQVHQWIRUWKDWFKDQJHLIWKHWD[SD\HUWLPHO\VLJQVDQGUHWXUQVWKH&RQVHQW
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
DFFRXQWLQJWDNHQLQWRDFFRXQWE\WKHWD[SD\HUWKHWD[SD\HULVVXEMHFWWRDQ\LQWHUHVWSHQDOWLHVRU
other adjustments resulting from improper implementation of the change. See†I$WD[SD\HU
ZKRWLPHO\¿OHVDQRQDXWRPDWLF)RUPDQGWDNHVWKHUHTXHVWHGFKDQJHLQWRDFFRXQWLQWKH
WD[SD\HU¶V)HGHUDOLQFRPHWD[UHWXUQIRUWKH\HDURIFKDQJHDQGDQ\VXEVHTXHQWWD[DEOH\HDU
prior to receiving the letter ruling granting permission for the requested change, may nevertheless
UHO\RQWKHOHWWHUUXOLQJUHFHLYHGIURPWKH$VVRFLDWHRI¿FHDIWHULWLVUHFHLYHGDVSURYLGHGLQVHFWLRQRIWKLVUHYHQXHSURFHGXUH,IKRZHYHUWKHUHTXHVWHGFKDQJHLVPRGL¿HGRULVZLWKGUDZQ
GHQLHGRUVLPLODUO\FORVHGZLWKRXWWKH$VVRFLDWHRI¿FHKDYLQJJUDQWHGFRQVHQWWD[SD\HUVDUHQRW
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
6HUYLFHRI¿FLDOV

.187KH$VVRFLDWHRI¿FHZLOOVHQGDFRS\RIHDFKFKDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJ
ZKHWKHUIDYRUDEOHRUDGYHUVHWRWKHDSSURSULDWH6HUYLFHRI¿FLDOLQWKHRSHUDWLQJGLYLVLRQWKDWKDV
H[DPLQDWLRQMXULVGLFWLRQRIWKHWD[SD\HU¶VWD[UHWXUQDQGWKH0DQDJHURIWKH0HWKRGVRI$FFRXQWLQJDQG7LPLQJ3UDFWLFH1HWZRUN

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

.19$WD[SD\HUPD\UHO\RQDFKDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJUHFHLYHGIURPWKH
$VVRFLDWHRI¿FHVXEMHFWWRFHUWDLQFRQGLWLRQVDQGOLPLWDWLRQVSee sections 7, 8, 10, 11, and 12 of
Rev. Proc. 2015-13 (or any successor).
$TXDOLI\LQJWD[SD\HUFRPSO\LQJWLPHO\ZLWKDQDXWRPDWLFFKDQJHUHTXHVWSURFHGXUHPD\UHO\
on the consent of the Commissioner as provided in the automatic change request procedure to
FKDQJH WKH WD[SD\HU¶V PHWKRG RI DFFRXQWLQJ VXEMHFW WR FHUWDLQFRQGLWLRQV DQG OLPLWDWLRQV See
generally sections 7, 8, 10, 11, and 12 of Rev. Proc. 2015-13 (or any successor). An Associate
RI¿FHPD\UHYLHZD)RUP¿OHGXQGHUDQDXWRPDWLFFKDQJHUHTXHVWSURFHGXUHDQGZLOOQRWLI\
WKHWD[SD\HULIDGGLWLRQDOLQIRUPDWLRQLVQHHGHGRULIFRQVHQWLVQRWJUDQWHGWRWKHWD[SD\HUIRUWKH

January 4, 2021

56

Bulletin No. 2021–1

requested change. SeeVHFWLRQRI5HY3URFRUDQ\VXFFHVVRU)XUWKHUWKH¿HOGRI¿FH
WKDWKDVMXULVGLFWLRQRYHUWKHWD[SD\HU¶VUHWXUQPD\UHYLHZWKH)RUPSee section 12 of Rev.
Proc. 2015-13 (or any successor).
Change in method of
accounting letter ruling
does not apply to another
taxpayer

.20$WD[SD\HUPD\QRWUHO\RQDFKDQJHLQPHWKRGRIDFFRXQWLQJOHWWHUUXOLQJLVVXHGWRDQRWKHU
WD[SD\HUSee†N

$VVRFLDWHRI¿FHGLVFUHWLRQ
to permit requested change
in method of accounting

.217KH$VVRFLDWHRI¿FHUHVHUYHVWKHULJKWWRGHFOLQHWRSURFHVVDQ\QRQDXWRPDWLF)RUP
LQVLWXDWLRQVLQZKLFKLWZRXOGQRWEHLQWKHEHVWLQWHUHVWRIVRXQGWD[DGPLQLVWUDWLRQWRSHUPLWWKH
UHTXHVWHGFKDQJHRULWZRXOGQRWFOHDUO\UHÀHFWLQFRPH,QWKLVUHJDUGWKH$VVRFLDWHRI¿FHZLOO
consider whether the change in method of accounting would clearly and directly frustrate compliDQFHHIIRUWVRIWKH6HUYLFHLQDGPLQLVWHULQJWKHLQFRPHWD[ODZVSee section 11.02 of Rev. Proc.
2015-13 (or any successor).

List of automatic change
in method of accounting
request procedures

.22 For procedures regarding requests for an automatic change in method of accounting, refer
WRWKHIROORZLQJSXEOLVKHGDXWRPDWLFFKDQJHUHTXHVWSURFHGXUHV7KH&RPPLVVLRQHU¶VFRQVHQWWR
DQRWKHUZLVHTXDOLI\LQJDXWRPDWLFFKDQJHLQPHWKRGRIDFFRXQWLQJLVJUDQWHGRQO\LIWKHWD[SD\HU
complies timely with the applicable automatic change request procedure.
The automatic change request procedures for obtaining a change in method of accounting inFOXGH
(1) Rev. Proc. 2015-13 (or any successor). Rev. Proc. 2015-13 applies to the changes in method
RIDFFRXQWLQJGHVFULEHGLQ5HY3URF,5%DVPRGL¿HGE\5HY3URF
2020-13, 2020-11 I.R.B. 515 and Rev. Proc. 2020-25, 2020-19 I.R.B. 785 (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
XQGHUZKLFKVXFKFKDQJHPXVWEHPDGH
7UHDV5HJ†GEDQNFRQIRUPLW\IRUEDGGHEWV
7UHDV5HJ†WRDQRYHUDOODFFUXDOPHWKRGIRUWKHWD[SD\HU¶V¿UVWWD[DEOH\HDULWLV
subject to § 448) (this change may also be subject to the procedures of Rev. Proc. 2015-13 (or any
VXFFHVVRU
7UHDV5HJ†DQGH[FOXVLRQIRUFHUWDLQUHWXUQHGPDJD]LQHVSDSHUEDFNVRUUHFRUGV
5HY3URF&%†HOHFWLQJRXWRIFHUWDLQH[HPSWLRQVIURPVHFXULWLHV
GHDOHUVWDWXVDQG
5HY3URF&%†FHUWDLQWD[SD\HUVXQGHUH[DPLQDWLRQWKDWVHOOPRUWgages 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
DQGDOVRSURYLGHWKHSURFHGXUHVXQGHUZKLFKVXFKFKDQJHPXVWEHPDGH

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Notice 96-30, 1996-1 C.B. 378 (§ 446 - change to comply with Statement of Financial AccountLQJ6WDQGDUGV1R
5HY3URF&%†FKDQJHLQUHDOHVWDWHGHYHORSHU¶VPHWKRGIRULQFOXGLQJFRVWVRIFRPPRQLPSURYHPHQWVLQWKHEDVLVRISURSHUW\VROG
5HY3URF&%FHUWDLQWD[SD\HUVVHHNLQJWRFKDQJHWRWKHLQVWDOOPHQWPHWKRGRIDFFRXQWLQJXQGHU†IRUDOWHUQDWLYHPLQLPXPWD[SXUSRVHVIRUFHUWDLQGHIHUUHGSD\PHQW
VDOHVFRQWUDFWVUHODWLQJWRSURSHUW\XVHGRUSURGXFHGLQWKHWUDGHRUEXVLQHVVRIIDUPLQJ
7UHDV5HJ†WD[SD\HUVFKDQJLQJWRWKHODVWLQ¿UVWRXW/,)2LQYHQWRU\PHWKRG
6HFWLRQFDQG7UHDV5HJ††DQGODUJHEDQNFKDQJLQJIURPWKHUHVHUYH
PHWKRGRI†DQG
5HY 3URF   &%  HOHFWLRQ XQGHU † E WR LQFOXGH PDUNHW GLVFRXQW LQ
income currently or election under § 1276(b) to use constant interest rate to determine accrued
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(4) See$SSHQGL[ * IRU WKH OLVW RI UHYHQXH SURFHGXUHV IRU DXWRPDWLF FKDQJHV LQ DFFRXQWLQJ
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 autoPDWLFFKDQJHUHTXHVWVDQGQRQDXWRPDWLFFKDQJHUHTXHVWV
SXUSRVHRIWKLVUHYHQXHSURFHGXUH
GH¿QLWLRQRI³OHWWHUUXOLQJ´
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LVVXHVXQGHUWKHMXULVGLFWLRQRIWKH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW
2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HV
3.03 (issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
3URGXFWV
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LVVXHVXQGHUWKHMXULVGLFWLRQRIWKH$VVRFLDWH&KLHI&RXQVHO,QWHUQDWLRQDO

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3.06 (issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special
,QGXVWULHV
SHULRGRIOLPLWDWLRQZKHQ¿OLQJDUHTXHVWIRUH[WHQVLRQVRIWLPHIRUPDNLQJDQHOHFWLRQ
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6.02 (letter rulings ordinarily not issued in certain areas because of the factual nature of the
SUREOHP
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OHWWHUUXOLQJVRUGLQDULO\QRWLVVXHGZKHUHWKHUHTXHVWGRHVQRWDGGUHVVWKHWD[VWDWXVOLDELOLW\RUUHSRUWLQJREOLJDWLRQVRIWKHUHTXHVWHU
OHWWHUUXOLQJVRUGLQDULO\QRWLVVXHGRQ)HGHUDOWD[FRQVHTXHQFHVRISURSRVHGOHJLVODWLRQ
OHWWHUUXOLQJVQRWLVVXHGRQIULYRORXVLVVXHV
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DXWKRUL]HGUHSUHVHQWDWLYHV
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7.02(2) (power of attorney used to indicate recipient of a copy or copies of a letter ruling or a
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VFKHGXOLQJFRQIHUHQFHV

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XVHUIHHV
VLJQL¿FDQWFKDQJHVWRSULRUUHYHQXHSURFHGXUH
HIIHFWRIWKLVUHYHQXHSURFHGXUHRQRWKHUGRFXPHQWV
HIIHFWLYHGDWHRIWKLVUHYHQXHSURFHGXUH
$SSHQGL[$VFKHGXOHRIXVHUIHHVDQG
$SSHQGL[*UHYHQXHSURFHGXUHVDQGQRWLFHVUHJDUGLQJOHWWHUUXOLQJUHTXHVWVUHODWLQJWRVSHFL¿F
Code sections and subject matters).
SECTION 10. HOW ARE
CONFERENCES FOR
LETTER RULINGS
SCHEDULED?
Schedules a conference if
requested by taxpayer

.01$WD[SD\HUPD\UHTXHVWDFRQIHUHQFHUHJDUGLQJDOHWWHUUXOLQJUHTXHVW1RUPDOO\DFRQIHUHQFHLVVFKHGXOHGRQO\ZKHQWKH$VVRFLDWHRI¿FHFRQVLGHUVLWWREHKHOSIXOLQGHFLGLQJWKHFDVHRU
when an adverse decision is indicated. If conferences are being arranged for more than one request
IRUDOHWWHUUXOLQJLQYROYLQJWKHVDPHWD[SD\HUWKH\ZLOOEHVFKHGXOHGVRDVWRFDXVHWKHOHDVWLQFRQYHQLHQFHWRWKHWD[SD\HU$VVWDWHGLQVHFWLRQVDQGRIWKLVUHYHQXHSURFHGXUH
DWD[SD\HUZKRZDQWVWRKDYHDFRQIHUHQFHRQWKHLVVXHRULVVXHVLQYROYHGVKRXOGLQGLFDWHWKLVLQ
ZULWLQJZKHQRUVRRQDIWHU¿OLQJWKHUHTXHVW
,IDFRQIHUHQFHKDVEHHQUHTXHVWHGWKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHZLOOEHQRWL¿HG
by telephone, if possible, of the time and place of the conference, which must then be held within
FDOHQGDUGD\VDIWHUWKLVFRQWDFW,QVWUXFWLRQVIRUUHTXHVWLQJDQH[WHQVLRQRIWKHGD\SHULRG
DQGQRWLI\LQJWKHWD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHRIWKH$VVRFLDWHRI¿FH¶VDSSURYDORU
GHQLDORIWKHUHTXHVWIRUH[WHQVLRQDUHWKHVDPHDVWKRVHH[SODLQHGLQVHFWLRQRUVHFWLRQ
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$WD[SD\HULVHQWLWOHGDVDPDWWHURIULJKWWRRQO\RQHFRQIHUHQFHLQWKH$VVRFLDWHRI¿FH
H[FHSWDVH[SODLQHGXQGHUVHFWLRQRIWKLVUHYHQXHSURFHGXUH7KLVFRQIHUHQFHLVQRUPDOO\
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.
:KHQPRUHWKDQRQHEUDQFKKDVWDNHQDQDGYHUVHSRVLWLRQRQDQLVVXHLQDOHWWHUUXOLQJUHTXHVW
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
DIWHUWKHEUDQFKKDVKDGDQRSSRUWXQLW\WRVWXG\WKHFDVH$WWKHUHTXHVWRIWKHWD[SD\HUWKHFRQference of right may be held earlier.

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1RWD[SD\HUKDVDULJKWWRDSSHDOWKHDFWLRQRIDEUDQFKWRDQ$VVRFLDWH&KLHI&RXQVHORUWRDQ\
RWKHURI¿FLDORIWKH6HUYLFHBut see section 10.05 of this revenue procedure for situations in which
WKH$VVRFLDWHRI¿FHPD\RIIHUDGGLWLRQDOFRQIHUHQFHV
,QHPSOR\PHQWWD[PDWWHUVLIWKHVHUYLFHUHFLSLHQWWKH¿UPUHTXHVWVWKHOHWWHUUXOLQJWKH¿UP
LVHQWLWOHGWRDFRQIHUHQFH,IWKHZRUNHUUHTXHVWVWKHOHWWHUUXOLQJERWKWKHZRUNHUDQGWKH¿UPDUH
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

.047KHVHQLRU$VVRFLDWHRI¿FHUHSUHVHQWDWLYHSUHVHQWDWWKHFRQIHUHQFHHQVXUHVWKDWWKHWD[SD\HUKDVWKHRSSRUWXQLW\WRSUHVHQWYLHZVRQDOOWKHLVVXHVLQTXHVWLRQ$Q$VVRFLDWHRI¿FHUHSUHVHQWDWLYH H[SODLQV WKH$VVRFLDWH RI¿FH¶V WHQWDWLYH GHFLVLRQ RQ WKH VXEVWDQWLYH LVVXHV DQG WKH
UHDVRQVIRUWKDWGHFLVLRQ,IWKHWD[SD\HUDVNVWKH$VVRFLDWHRI¿FHWROLPLWWKHUHWURDFWLYHHIIHFW
RIDQ\OHWWHUUXOLQJRUOLPLWWKHUHYRFDWLRQRUPRGL¿FDWLRQRIDSULRUOHWWHUUXOLQJDQ$VVRFLDWHRI¿FHUHSUHVHQWDWLYHZLOOGLVFXVVWKHUHFRPPHQGDWLRQFRQFHUQLQJWKLVLVVXHDQGWKHUHDVRQVIRUWKH
UHFRPPHQGDWLRQ7KH$VVRFLDWHRI¿FHUHSUHVHQWDWLYHVZLOOQRWPDNHDFRPPLWPHQWUHJDUGLQJWKH
FRQFOXVLRQWKDWWKH$VVRFLDWHRI¿FHZLOO¿QDOO\DGRSW

May offer additional
conferences

.057KH$VVRFLDWHRI¿FHZLOORIIHUWKHWD[SD\HUDQDGGLWLRQDOFRQIHUHQFHLIDIWHUWKHFRQIHUence of right, an adverse holding is proposed on a new issue or on the same issue but on different
JURXQGVIURPWKRVHGLVFXVVHGDWWKH¿UVWFRQIHUHQFH7KHUHLVQRULJKWWRDQRWKHUFRQIHUHQFHZKHQ
DSURSRVHGKROGLQJLVUHYHUVHGDWDKLJKHUOHYHOZLWKDUHVXOWOHVVIDYRUDEOHWRWKHWD[SD\HULIWKH
grounds or arguments on which the reversal is based were discussed at the conference of right.
7KHOLPLWRQWKHQXPEHURIFRQIHUHQFHVWRZKLFKDWD[SD\HULVHQWLWOHGGRHVQRWSUHYHQWWKH$VVRFLDWHRI¿FHIURPRIIHULQJDGGLWLRQDOFRQIHUHQFHVLQFOXGLQJFRQIHUHQFHVZLWKDQRI¿FLDOKLJKHU
WKDQWKHEUDQFKOHYHOLIWKH$VVRFLDWHRI¿FHGHFLGHVWKH\DUHQHHGHG7KHVHFRQIHUHQFHVDUHQRW
offered as a matter of course simply because the branch has reached an adverse decision. In genHUDOFRQIHUHQFHVZLWKKLJKHUOHYHORI¿FLDOVDUHRIIHUHGRQO\LIWKH$VVRFLDWHRI¿FHGHWHUPLQHVWKDW
WKHFDVHSUHVHQWVVLJQL¿FDQWLVVXHVRIWD[SROLF\RUWD[DGPLQLVWUDWLRQDQGWKDWWKHFRQVLGHUDWLRQRI
WKHVHLVVXHVZRXOGEHHQKDQFHGE\DGGLWLRQDOFRQIHUHQFHVZLWKWKHWD[SD\HU

Requires written
FRQ¿UPDWLRQRILQIRUPDWLRQ
presented at conference

.067KHWD[SD\HUVKRXOGIXUQLVKWRWKH$VVRFLDWHRI¿FHDQ\DGGLWLRQDOGDWDUHDVRQLQJSUHFHGHQWVHWFWKDWZHUHSURSRVHGE\WKHWD[SD\HUDQGGLVFXVVHGDWWKHFRQIHUHQFHEXWQRWSUHYLRXVO\
RUDGHTXDWHO\SUHVHQWHGLQZULWLQJ7KHWD[SD\HUPXVWIXUQLVKWKHDGGLWLRQDOLQIRUPDWLRQZLWKLQ
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

.076RPHWLPHVLWZLOOEHDGYDQWDJHRXVWRERWKWKH$VVRFLDWHRI¿FHDQGWKHWD[SD\HUWRKROG
DFRQIHUHQFHEHIRUHWKHWD[SD\HUVXEPLWVWKHOHWWHUUXOLQJUHTXHVWWRGLVFXVVVXEVWDQWLYHRUSURcedural issues relating to a proposed transaction. These conferences are held only if the identity
RIWKHWD[SD\HULVSURYLGHGWRWKH$VVRFLDWHRI¿FHRQO\LIWKHWD[SD\HUDFWXDOO\LQWHQGVWRPDNH
a request, only if the request involves a matter on which a letter ruling is ordinarily issued, and
RQO\DWWKHGLVFUHWLRQRIWKH$VVRFLDWHRI¿FHDQGDVWLPHSHUPLWV)RUH[DPSOHDSUHVXEPLVVLRQ
FRQIHUHQFHZLOOQRWEHKHOGRQDQLQFRPHWD[LVVXHLIDWWKHWLPHWKHSUHVXEPLVVLRQFRQIHUHQFH
LVUHTXHVWHGWKHLGHQWLFDOLVVXHLVLQYROYHGLQWKHWD[SD\HU¶VUHWXUQIRUDQHDUOLHUSHULRGDQGWKDW

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LVVXHLVEHLQJH[DPLQHGE\D¿HOGRI¿FHSee 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
VXEPLWWHGIROORZLQJDSUHVXEPLVVLRQFRQIHUHQFHWKH$VVRFLDWHRI¿FHPD\QRWLI\E\PHPRUDQGXPWKHDSSURSULDWH6HUYLFHRI¿FLDOVLQWKHRSHUDWLQJGLYLVLRQWKDWKDVH[DPLQDWLRQMXULVGLFWLRQ
RIWKHWD[SD\HU¶VWD[UHWXUQDQGPD\JLYHLWVYLHZVRQWKHLVVXHVUDLVHGGXULQJWKHSUHVXEPLVVLRQ
FRQIHUHQFH)RU/% ,WD[SD\HUVDFRS\RIWKHPHPRUDQGXPZLOOEHVHQWWRWKH$VVLVWDQW'HSXW\
Commissioner, Compliance Integration. This memorandum may constitute Chief Counsel AdYLFHDVGH¿QHGLQ†LDQGPD\EHVXEMHFWWRGLVFORVXUHXQGHU†
(1) Taxpayer may request a pre-submission conference in writing or by telephone.$WD[SD\HURUWKHWD[SD\HU¶VUHSUHVHQWDWLYHPD\UHTXHVWDSUHVXEPLVVLRQFRQIHUHQFHLQZULWLQJRUE\
WHOHSKRQH,IWKHWD[SD\HU¶VUHSUHVHQWDWLYHLVUHTXHVWLQJWKHSUHVXEPLVVLRQFRQIHUHQFHDSRZHU
RIDWWRUQH\LVUHTXLUHG$WD[SD\HUVKRXOGXVH)RUPPower of Attorney and Declaration of
Representative WR SURYLGH WKH UHSUHVHQWDWLYH¶V DXWKRULW\ ,I PXOWLSOH WD[SD\HUV DQGRU WKHLU DXWKRUL]HGUHSUHVHQWDWLYHVZLOODWWHQGRUSDUWLFLSDWHLQWKHSUHVXEPLVVLRQFRQIHUHQFHFURVVSRZHUVRIDWWRUQH\RUDVDSSURSULDWHWD[LQIRUPDWLRQDXWKRUL]DWLRQVDUHUHTXLUHG,IWKHWD[SD\HU¶V
UHSUHVHQWDWLYHLV UHTXHVWLQJWKHSUHVXEPLVVLRQFRQIHUHQFHE\ WHOHSKRQHWKH$VVRFLDWHRI¿FH¶V
representative (seeOLVWRISKRQHQXPEHUVEHORZZLOOSURYLGHWKHID[QXPEHUWRVHQGWKHSRZHU
RIDWWRUQH\RUDVDSSURSULDWHWD[LQIRUPDWLRQDXWKRUL]DWLRQVSULRUWRVFKHGXOLQJWKHSUHVXEPLVsion conference.
7KHUHTXHVWPXVWLGHQWLI\WKHWD[SD\HUDQGEULHÀ\H[SODLQWKHSULPDU\LVVXHVRLWFDQEHDVsigned to the appropriate branch. If submitted in writing, the request should also identify the
$VVRFLDWHRI¿FHH[SHFWHGWRKDYHMXULVGLFWLRQRYHUWKHUHTXHVWIRUDOHWWHUUXOLQJ$ZULWWHQUHTXHVW
for a pre-submission conference should be sent to the appropriate address listed in section 7.04 of
this revenue procedure.
7RUHTXHVWDSUHVXEPLVVLRQFRQIHUHQFHE\WHOHSKRQHFDOO
DQRWDWROOIUHHFDOOIRUPDWWHUVXQGHUWKHMXULVGLFWLRQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO&RUSRUDWH
EQRWDWROOIUHHFDOOIRUPDWWHUVXQGHUWKHMXULVGLFWLRQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HV
FQRWDWROOIUHHFDOOIRUPDWWHUVXQGHUWKHMXULVGLFWLRQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO)LQDQFLDO,QVWLWXWLRQVDQG3URGXFWV
GQRWDWROOIUHHFDOOIRUPDWWHUVXQGHUWKHMXULVGLFWLRQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO,QFRPH7D[DQG$FFRXQWLQJ
HQRWDWROOIUHHFDOOIRUPDWWHUVXQGHUWKHMXULVGLFWLRQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO,QWHUQDWLRQDO
IQRWDWROOIUHHFDOOIRUPDWWHUVXQGHUWKHMXULVGLFWLRQRIWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO3DVVWKURXJKVDQG6SHFLDO,QGXVWULHVRU
JQRWDWROOIUHHFDOOIRUPDWWHUVXQGHUWKHMXULVGLFWLRQRIWKH2I¿FHRI$VVRciate Chief Counsel (Procedure and Administration).

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(2) Pre-submission conferences held in person or by telephone. Depending on the circumVWDQFHV SUHVXEPLVVLRQ FRQIHUHQFHV PD\ EH KHOG LQ SHUVRQ DW WKH$VVRFLDWH RI¿FH RU PD\ EH
conducted by telephone.
(3) &HUWDLQ LQIRUPDWLRQ UHTXLUHG WR EH VXEPLWWHG WR WKH $VVRFLDWH RI¿FH SULRU WR WKH
pre-submission conference. *HQHUDOO\ WKH WD[SD\HU ZLOO EH DVNHG WR SURYLGH D VWDWHPHQW RI
whether the issue is an issue on which a letter ruling is ordinarily issued and a draft of the letter
UXOLQJUHTXHVWRURWKHUGHWDLOHGZULWWHQVWDWHPHQWH[SODLQLQJWKHSURSRVHGWUDQVDFWLRQLVVXHDQG
OHJDODQDO\VLVEHIRUHVFKHGXOLQJWKHSUHVXEPLVVLRQFRQIHUHQFH7KH$VVRFLDWHRI¿FHZLOODOORZ
WD[SD\HUVWRVXEPLWDVWDWHPHQWDIWHUWKHFRQIHUHQFHLVVFKHGXOHGDWLWVGLVFUHWLRQ,IWKHWD[SD\HU¶V
DXWKRUL]HGUHSUHVHQWDWLYHZLOODWWHQGRUSDUWLFLSDWHLQWKHSUHVXEPLVVLRQFRQIHUHQFHDSRZHURI
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
RURQWKH2I¿FHRI&KLHI&RXQVHOLQSDUWLFXODUDQGFDQQRWEHUHOLHGXSRQDVDEDVLVIRUREWDLQLQJ
retroactive relief under the provisions of § 7805(b).
May schedule a conference
to be held by telephone

.08 Depending on the circumstances, conferences, including conferences of right and pre-subPLVVLRQFRQIHUHQFHVPD\EHKHOGE\WHOHSKRQH7KLVPD\RFFXUIRUH[DPSOHZKHQDWD[SD\HU
ZDQWVDFRQIHUHQFHRIULJKWEXWEHOLHYHVWKDWWKHLVVXHLQYROYHGGRHVQRWZDUUDQWLQFXUULQJWKHH[pense of traveling to Washington, DC, or if it is believed that scheduling an in-person conference
RIULJKWZLOOVXEVWDQWLDOO\GHOD\WKHUXOLQJSURFHVV,IDWD[SD\HUPDNHVVXFKDUHTXHVWWKHEUDQFK
reviewer will decide if it is appropriate in the particular case to hold a conference by telephone. If
WKHUHTXHVWLVDSSURYHGWKHWD[SD\HUZLOOEHDGYLVHGZKHQWRFDOOWKH$VVRFLDWHRI¿FHUHSUHVHQWDtives (not a toll-free call).

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

.01$WD[SD\HURUGLQDULO\PD\UHO\RQDOHWWHUUXOLQJUHFHLYHGIURPWKH$VVRFLDWHRI¿FHVXEMHFW
to the conditions and limitations described in this section.

Will not apply to another
taxpayer

.02$ WD[SD\HU PD\ QRW UHO\ RQ D OHWWHU UXOLQJ LVVXHG WR DQRWKHU WD[SD\HU See † N
However, shareholders and security holders of a corporation may rely on a letter ruling issued to
WKHFRUSRUDWLRQIRUWKHOLPLWHGSXUSRVHRIGHWHUPLQLQJWKHSURSHUWUHDWPHQWRIGLUHFWO\UHODWHGWD[
LWHPV)RUH[DPSOHDOHWWHUUXOLQJLVVXHGWRDFRUSRUDWLRQZLWKUHVSHFWWRWKHUHRUJDQL]DWLRQRIWKDW
FRUSRUDWLRQPD\EHUHOLHGXSRQE\WKHFRUSRUDWLRQ¶VVKDUHKROGHUVLQGHWHUPLQLQJWKHLUEDVLVLQWKH
VWRFNRIWKHFRUSRUDWLRQIROORZLQJWKHUHRUJDQL]DWLRQSee also section 11.06(3) of this revenue
procedure.

:LOOEHXVHGE\D¿HOGRI¿FH
in examining the taxpayer’s
return

.03:KHQGHWHUPLQLQJDWD[SD\HU¶VOLDELOLW\WKH¿HOGRI¿FHPXVWDVFHUWDLQZKHWKHU²
WKHFRQFOXVLRQVVWDWHGLQWKHOHWWHUUXOLQJDUHSURSHUO\UHÀHFWHGLQWKHUHWXUQ
WKHUHSUHVHQWDWLRQVXSRQZKLFKWKHOHWWHUUXOLQJZDVEDVHGUHÀHFWDQDFFXUDWHVWDWHPHQWRI
WKHFRQWUROOLQJIDFWV
WKHWUDQVDFWLRQZDVFDUULHGRXWVXEVWDQWLDOO\DVSURSRVHGDQG

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January 4, 2021

(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.
,IZKHQGHWHUPLQLQJWKHOLDELOLW\WKH¿HOGRI¿FH¿QGVWKDWDOHWWHUUXOLQJVKRXOGEHUHYRNHG
RUPRGL¿HGWKH¿QGLQJVDQGUHFRPPHQGDWLRQVRIWKH¿HOGRI¿FHZLOOEHIRUZDUGHGWKURXJKWKH
DSSURSULDWH 'LUHFWRU WR WKH$VVRFLDWH RI¿FH IRU FRQVLGHUDWLRQ EHIRUH IXUWKHU DFWLRQ LV WDNHQ E\
WKH¿HOGRI¿FH6XFKDUHIHUUDOWRWKH$VVRFLDWHRI¿FHZLOOEHWUHDWHGDVDUHTXHVWIRUWHFKQLFDO
advice and the provisions of Rev. Proc. 2021-2, this Bulletin, relating to requests for technical
advice will be followed. SeeVHFWLRQRI5HY3URFWKLV%XOOHWLQ2WKHUZLVHWKH¿HOG
RI¿FHVKRXOGDSSO\WKHOHWWHUUXOLQJLQGHWHUPLQLQJWKHWD[SD\HU¶VOLDELOLW\,ID¿HOGRI¿FHKDYLQJ
jurisdiction over a return or other matter proposes to reach a conclusion contrary to a letter ruling
SUHYLRXVO\LVVXHGWRWKHWD[SD\HULWVKRXOGFRRUGLQDWHWKHPDWWHUZLWKWKH$VVRFLDWHRI¿FH
0D\EHUHYRNHGRUPRGL¿HG
if found to be in error or
there has been a change in
law

.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
EHUHYRNHGRUPRGL¿HG,IDOHWWHUUXOLQJLVUHYRNHGRUPRGL¿HGWKHUHYRFDWLRQRUPRGL¿FDWLRQ
applies to all years open under the period of limitation unless the Service uses its discretionary
DXWKRULW\XQGHU†EWROLPLWWKHUHWURDFWLYHHIIHFWRIWKHUHYRFDWLRQRUPRGL¿FDWLRQ
$OHWWHUUXOLQJPD\EHUHYRNHGRUPRGL¿HGE\²
DOHWWHUJLYLQJQRWLFHRIUHYRFDWLRQRUPRGL¿FDWLRQWRWKHWD[SD\HUWRZKRPWKHOHWWHUUXOLQJ
ZDVLVVXHG
WKHHQDFWPHQWRIOHJLVODWLRQRUUDWL¿FDWLRQRIDWD[WUHDW\
DGHFLVLRQRIWKH8QLWHG6WDWHV6XSUHPH&RXUW
WKHLVVXDQFHRIWHPSRUDU\RU¿QDOUHJXODWLRQVRU
(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.
3XEOLFDWLRQRIDQRWLFHRISURSRVHGUXOHPDNLQJZLOOQRWDIIHFWWKHDSSOLFDWLRQRIDQ\OHWWHUUXOing issued under this revenue procedure.
:KHUH D OHWWHU UXOLQJ LV UHYRNHG RU PRGL¿HG E\ D OHWWHU WR WKH WD[SD\HU WKH OHWWHU ZLOO VWDWH
ZKHWKHUWKHUHYRFDWLRQRUPRGL¿FDWLRQLVUHWURDFWLYH:KHUHDOHWWHUUXOLQJLVUHYRNHGRUPRGL¿HG
E\WKHLVVXDQFHRI¿QDORUWHPSRUDU\UHJXODWLRQVRUE\WKHSXEOLFDWLRQRIDUHYHQXHUXOLQJUHYHQXH
procedure, notice, or other statement in the Internal Revenue Bulletin, the document may contain
a statement as to its retroactive effect on letter rulings.
$OHWWHUUXOLQJPD\EHUHYRNHGHYHQLIWKHVXEMHFWRIWKHOHWWHUUXOLQJLVDPDWWHUWKDWWKH6HUYLFH
currently does not issue rulings on.

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Letter ruling revoked or
PRGL¿HGEDVHGRQPDWHULDO
change in facts applied
retroactively

.05$Q$VVRFLDWHRI¿FHZLOOUHYRNHRUPRGLI\DOHWWHUUXOLQJDQGDSSO\WKHUHYRFDWLRQUHWURDFWLYHO\WRWKHWD[SD\HUIRUZKRPWKHOHWWHUUXOLQJZDVLVVXHGRUWRDWD[SD\HUZKRVHWD[OLDELOLW\ZDV
directly involved in the letter ruling if—
WKHUHKDVEHHQDPLVVWDWHPHQWRURPLVVLRQRIFRQWUROOLQJIDFWV
(2) the facts at the time of the transaction are materially different from the controlling facts on
ZKLFKWKHOHWWHUUXOLQJZDVEDVHGRU
(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
UHYRNHGRUPRGL¿HG
retroactively

.06:KHUHWKHUHYRFDWLRQRUPRGL¿FDWLRQRIDOHWWHUUXOLQJLVIRUUHDVRQVRWKHUWKDQDFKDQJHLQ
facts as described in section 11.05 of this revenue procedure, it will generally not be applied retroDFWLYHO\WRWKHWD[SD\HUIRUZKRPWKHOHWWHUUXOLQJZDVLVVXHGRUWRDWD[SD\HUZKRVHWD[OLDELOLW\
was directly involved in the letter ruling provided that—
WKHUHKDVEHHQQRFKDQJHLQWKHDSSOLFDEOHODZ
WKHOHWWHUUXOLQJZDVRULJLQDOO\LVVXHGIRUDSURSRVHGWUDQVDFWLRQDQG
WKHWD[SD\HUGLUHFWO\LQYROYHGLQWKHOHWWHUUXOLQJDFWHGLQJRRGIDLWKLQUHO\LQJRQWKHOHWWHU
UXOLQJDQGUHYRNLQJRUPRGLI\LQJWKHOHWWHUUXOLQJUHWURDFWLYHO\ZRXOGEHWRWKHWD[SD\HU¶VGHWULPHQW)RUH[DPSOHWKHWD[OLDELOLW\RIHDFKVKDUHKROGHULVGLUHFWO\LQYROYHGLQDOHWWHUUXOLQJRQ
WKHUHRUJDQL]DWLRQRIDFRUSRUDWLRQ'HSHQGLQJRQDOOIDFWVDQGFLUFXPVWDQFHVWKHVKDUHKROGHUV¶
UHOLDQFHRQWKHOHWWHUUXOLQJPD\EHLQJRRGIDLWK7KHWD[OLDELOLW\RIDPHPEHURIDQLQGXVWU\
however, is not directly involved in a letter ruling issued to another member of the same industry.
7KHUHIRUHDQRQUHWURDFWLYHUHYRFDWLRQRUPRGL¿FDWLRQRIDOHWWHUUXOLQJWRRQHPHPEHURIDQLQGXVWU\ZLOOQRWH[WHQGWRRWKHUPHPEHUVRIWKHLQGXVWU\ZKRKDYHQRWUHFHLYHGOHWWHUUXOLQJV%\
WKHVDPHUHDVRQLQJDWD[SUDFWLWLRQHUPD\QRWH[WHQGWRRQHFOLHQWWKHQRQUHWURDFWLYHDSSOLFDWLRQ
RIDUHYRFDWLRQRUPRGL¿FDWLRQRIDOHWWHUUXOLQJSUHYLRXVO\LVVXHGWRDQRWKHUFOLHQW
,IDOHWWHUUXOLQJLVUHYRNHGRUPRGL¿HGE\DOHWWHUWRWKHWD[SD\HUZLWKUHWURDFWLYHHIIHFWWKH
OHWWHUWRWKHWD[SD\HUZLOOH[FHSWLQIUDXGFDVHVVWDWHWKHJURXQGVRQZKLFKWKHOHWWHUUXOLQJLVEHLQJUHYRNHGRUPRGL¿HGDQGH[SODLQWKHUHDVRQVZK\LWLVEHLQJUHYRNHGRUPRGL¿HGUHWURDFWLYHO\

Retroactive effect of
UHYRFDWLRQRUPRGL¿FDWLRQ
applied to a particular
transaction

.07 A letter ruling issued on a particular transaction represents a holding of the Service on that
WUDQVDFWLRQRQO\,WZLOOQRWDSSO\WRDVLPLODUWUDQVDFWLRQLQWKHVDPH\HDURUDQ\RWKHU\HDU([cept in unusual circumstances, the application of that letter ruling to the transaction will not be
DIIHFWHGE\WKHODWHULVVXDQFHRIUHJXODWLRQVHLWKHUWHPSRUDU\RU¿QDOLIFRQGLWLRQVWKURXJK
(3) in section 11.06 of this revenue procedure are met.

Retroactive effect of
UHYRFDWLRQRUPRGL¿FDWLRQ
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
PRGL¿FDWLRQWRDGDWHWKDWLVQRWHDUOLHUWKDQWKDWRQZKLFKWKHOHWWHUUXOLQJLVUHYRNHGRUPRGL¿HG
)RUH[DPSOHWKHUHWURDFWLYHHIIHFWRIWKHUHYRFDWLRQRUPRGL¿FDWLRQRIDOHWWHUUXOLQJFRYHULQJD
continuing action or series of actions ordinarily would be limited in the following situations when
WKHOHWWHUUXOLQJLVLQHUURURUQRORQJHULQDFFRUGZLWKWKHSRVLWLRQRIWKH6HUYLFH

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65

January 4, 2021

$WD[SD\HUUHFHLYHGDOHWWHUUXOLQJWKDWFHUWDLQSD\PHQWVDUHH[FOXGDEOHIURPJURVVLQFRPH
IRU)HGHUDOLQFRPHWD[SXUSRVHV7KHWD[SD\HURUGLQDULO\ZRXOGEHSURWHFWHGRQO\IRUWKHSD\PHQW
UHFHLYHGDIWHUWKHOHWWHUUXOLQJZDVLVVXHGDQGEHIRUHWKHUHYRFDWLRQRUPRGL¿FDWLRQRIWKHOHWWHU
ruling.
$WD[SD\HUUHQGHUHGDVHUYLFHRUSURYLGHGDIDFLOLW\WKDWLVVXEMHFWWRWKHH[FLVHWD[RQVHUYLFHVRUIDFLOLWLHVDQGLQUHO\LQJRQDOHWWHUUXOLQJUHFHLYHGLWGLGQRWSDVVWKHWD[RQWRWKHXVHU
of the service or the facility.
(3) An employer incurred liability under the Federal Insurance Contributions Act but, in relying
RQDOHWWHUUXOLQJUHFHLYHGQHLWKHUFROOHFWHGWKHHPSOR\HHWD[QRUSDLGWKHHPSOR\HHDQGHPSOR\HU
WD[HVXQGHUWKH)HGHUDO,QVXUDQFH&RQWULEXWLRQV$FW7KHUHWURDFWLYHHIIHFWZRXOGEHOLPLWHGIRU
ERWKWKHHPSOR\HUDQGHPSOR\HHWD[7KHOLPLWDWLRQZRXOGEHFRQGLWLRQHGRQWKHHPSOR\HUIXUnishing wage data, as may be required by § 31.6011(a)-1 of the Treasury Regulations.
Generally not retroactively
UHYRNHGRUPRGL¿HGLI
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 manuIDFWXUHU¶VH[FLVHWD[RUWKHUHWDLOHU¶VH[FLVHWD[PD\QRWUHWURDFWLYHO\UHYRNHRUPRGLI\DQHDUOLHU
OHWWHUUXOLQJKROGLQJWKDWWKHVDOHRUOHDVHRIVXFKDQDUWLFOHZDVQRWWD[DEOHLIWKHWD[SD\HUWRZKRP
the letter ruling was issued, in relying on the earlier letter ruling, gave up possession or ownership
RIWKHDUWLFOHZLWKRXWSDVVLQJWKHWD[RQWRWKHFXVWRPHUSee § 1108(b), Revenue Act of 1926.

May be retroactively
UHYRNHGRUPRGL¿HGZKHQ
transaction is entered into
before the issuance of the
letter ruling

.10$WD[SD\HULVQRWSURWHFWHGDJDLQVWUHWURDFWLYHUHYRFDWLRQRUPRGL¿FDWLRQRIDOHWWHUUXOLQJ
involving a transaction completed before the issuance of the letter ruling or involving a continuing
DFWLRQRUVHULHVRIDFWLRQVRFFXUULQJEHIRUHWKHLVVXDQFHRIWKHOHWWHUUXOLQJEHFDXVHWKHWD[SD\HU
did not enter into the transaction relying on a letter ruling.

Taxpayer may request that
retroactivity be limited

.118QGHU†EWKH6HUYLFHPD\SUHVFULEHDQ\H[WHQWWRZKLFKDUHYRFDWLRQRUPRGL¿FDtion of a letter ruling will be applied without retroactive effect.
$WD[SD\HUWRZKRPDOHWWHUUXOLQJKDVEHHQLVVXHGPD\UHTXHVWWKDWWKHDSSURSULDWH'HSXW\
$VVRFLDWH&KLHI&RXQVHOOLPLWWKHUHWURDFWLYHHIIHFWRIDQ\UHYRFDWLRQRUPRGL¿FDWLRQRIWKHOHWWHU
ruling.
)RU OHWWHU UXOLQJV JRYHUQHG E\ 5HY 3URF  WKLV %XOOHWLQ D WD[SD\HU WR ZKRP D OHWWHU
UXOLQJKDVEHHQLVVXHGE\WKH&RPPLVVLRQHU7D[([HPSWDQG*RYHUQPHQW(QWLWLHVPD\UHTXHVW
OLPLWLQJWKHUHWURDFWLYHHIIHFWRIDQ\UHYRFDWLRQRUPRGL¿FDWLRQRIWKHOHWWHUUXOLQJSXUVXDQWWRWKH
procedures set forth in section 29 of Rev. Proc. 2021-4, this Bulletin.

Format of request

(1) Request for relief under § 7805(b) must be made in required format. A request to limit
WKHUHWURDFWLYHHIIHFWRIWKHUHYRFDWLRQRUPRGL¿FDWLRQRIDOHWWHUUXOLQJPXVWEHLQWKHJHQHUDO
form of, and meet the general requirements for, a letter ruling request, as set forth in section 7 of
WKLVUHYHQXHSURFHGXUH6SHFL¿FDOO\WKHUHTXHVWPXVWDOVR
DVWDWHWKDWLWLVEHLQJPDGHXQGHU†E
EVWDWHWKHUHOLHIVRXJKW
FH[SODLQWKHUHDVRQVDQGDUJXPHQWVLQVXSSRUWRIWKHUHOLHIUHTXHVWHGLQFOXGLQJDGLVFXVVLRQ
of section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue
SURFHGXUHDQGDQ\RWKHUIDFWRUVDVWKH\UHODWHWRWKHWD[SD\HU¶VSDUWLFXODUVLWXDWLRQDQG

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(d) include any documents bearing on the request.
$UHTXHVWWKDWWKH6HUYLFHOLPLWWKHUHWURDFWLYHHIIHFWRIDUHYRFDWLRQRUPRGL¿FDWLRQRIDOHWWHUUXOLQJPD\EHPDGHLQWKHIRUPRIDVHSDUDWHUHTXHVWIRUDOHWWHUUXOLQJZKHQIRUH[DPSOH
DUHYHQXHUXOLQJKDVWKHHIIHFWRIPRGLI\LQJRUUHYRNLQJDOHWWHUUXOLQJSUHYLRXVO\LVVXHGWRWKH
WD[SD\HURUZKHQWKH6HUYLFHQRWL¿HVWKHWD[SD\HURIDFKDQJHLQSRVLWLRQWKDWZLOOKDYHWKHHIIHFW
RIUHYRNLQJRUPRGLI\LQJWKHOHWWHUUXOLQJ
:KHQQRWLFHLVJLYHQE\WKH¿HOGRI¿FHGXULQJDQH[DPLQDWLRQRIWKHWD[SD\HU¶VUHWXUQRUE\
$SSHDOVGXULQJFRQVLGHUDWLRQRIWKHWD[SD\HU¶VUHWXUQEHIRUH$SSHDOVDUHTXHVWWROLPLWUHWURDFWLYHHIIHFWPXVWEHPDGHLQWKHIRUPRIDUHTXHVWIRUWHFKQLFDODGYLFHDVH[SODLQHGLQVHFWLRQ
of Rev. Proc. 2021-2, this Bulletin.
When germane to a pending letter ruling request, a request to limit the retroactive effect of a
UHYRFDWLRQRUPRGL¿FDWLRQRIDOHWWHUUXOLQJPD\EHPDGHDVSDUWRIWKHUHTXHVWIRUWKHOHWWHUUXOLQJ
either initially or at any time before the letter ruling is issued. When a letter ruling that concerns
DFRQWLQXLQJWUDQVDFWLRQLVUHYRNHGRUPRGL¿HGE\IRUH[DPSOHDVXEVHTXHQWUHYHQXHUXOLQJD
UHTXHVWWROLPLWUHWURDFWLYHHIIHFWPXVWEHPDGHEHIRUHWKHH[DPLQDWLRQRIWKHUHWXUQWKDWFRQWDLQV
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).$WD[SD\HUZKRUHTXHVWV
the application of § 7805(b) in a separate letter ruling request has the right to a conference in the
$VVRFLDWHRI¿FHDVH[SODLQHGLQVHFWLRQVDQGRIWKLVUHYHQXHSURFHGXUH,IWKH
request is made initially as part of a pending letter ruling request or is made before the conference
RIULJKWLVKHOGRQWKHVXEVWDQWLYHLVVXHVWKH†ELVVXHZLOOEHGLVFXVVHGDWWKHWD[SD\HU¶V
RQHFRQIHUHQFHRIULJKWDVH[SODLQHGLQVHFWLRQRIWKLVUHYHQXHSURFHGXUH,IWKHUHTXHVWIRU
the application of § 7805(b) relief is made as part of a pending letter ruling request after a conIHUHQFHKDVEHHQKHOGRQWKHVXEVWDQWLYHLVVXHDQGWKH$VVRFLDWHRI¿FHGHWHUPLQHVWKDWWKHUHLV
MXVWL¿FDWLRQIRUKDYLQJGHOD\HGWKHUHTXHVWWKHWD[SD\HULVHQWLWOHGWRRQHFRQIHUHQFHRIULJKWFRQcerning 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?

DLUHFWRUV LVVXH GHWHUPLQDWLRQ OHWWHUV RQO\ LI WKH TXHVWLRQ SUHVHQWHG LV VSHFL¿FDOO\ DQVZHUHG
E\DVWDWXWHWD[WUHDW\UHJXODWLRQDFRQFOXVLRQVWDWHGLQDUHYHQXHUXOLQJRUDQRSLQLRQRUFRXUW
decision that represents the position of the Service.
Under no circumstances will a Director issue a determination letter unless it is clearly shown
WKDWWKHUHTXHVWFRQFHUQVDUHWXUQWKDWKDVEHHQ¿OHGRULVUHTXLUHGWREH¿OHGDQGRYHUZKLFKWKH
'LUHFWRUKDVRUZLOOKDYHH[DPLQDWLRQMXULVGLFWLRQ
A determination letter does not include assistance provided by the U.S. competent authority
SXUVXDQW WR WKH PXWXDO DJUHHPHQW SURFHGXUH LQ WD[ WUHDWLHV DV VHW IRUWK LQ 5HY 3URF 
2015-35 I.R.B. 236.

In income and gift tax
matters

.01,QLQFRPHDQGJLIWWD[PDWWHUV'LUHFWRUVLVVXHGHWHUPLQDWLRQOHWWHUVLQUHVSRQVHWRWD[SD\HUV¶ZULWWHQUHTXHVWVRQFRPSOHWHGWUDQVDFWLRQVWKDWDIIHFWUHWXUQVRYHUZKLFKWKH\KDYHH[DPLQDtion jurisdiction. A determination letter usually is not issued for a question concerning a return to
EH¿OHGE\WKHWD[SD\HULIWKHVDPHTXHVWLRQLVLQYROYHGLQDUHWXUQDOUHDG\¿OHG
1RUPDOO\ 'LUHFWRUV GR QRW LVVXH GHWHUPLQDWLRQ OHWWHUV RQ WKH WD[ FRQVHTXHQFHV RI SURSRVHG
transactions. A Director may issue a determination letter on the replacement of involuntarily conYHUWHGSURSHUW\XQGHU†HYHQLIWKHUHSODFHPHQWKDVQRW\HWEHHQPDGHLIWKHWD[SD\HUKDV

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January 4, 2021

¿OHGDQLQFRPHWD[UHWXUQIRUWKH¿UVWWD[DEOH\HDULQZKLFKDQ\RIWKHJDLQZDVUHDOL]HGIURPWKH
converted property.
In estate tax matters

.02,QHVWDWHWD[PDWWHUV'LUHFWRUVLVVXHGHWHUPLQDWLRQOHWWHUVLQUHVSRQVHWRZULWWHQUHTXHVWV
DIIHFWLQJWKHHVWDWHWD[UHWXUQVRYHUZKLFKWKH\KDYHH[DPLQDWLRQMXULVGLFWLRQ7KH\GRQRWLVVXH
GHWHUPLQDWLRQ OHWWHUV RQ PDWWHUV FRQFHUQLQJ WKH DSSOLFDWLRQ RIWKH HVWDWH WD[ WR WKH SURVSHFWLYH
estate of a living person.

In generation-skipping
transfer tax matters

.03,QJHQHUDWLRQVNLSSLQJWUDQVIHUWD[PDWWHUV'LUHFWRUVLVVXHGHWHUPLQDWLRQOHWWHUVLQUHVSRQVH
WR ZULWWHQ UHTXHVWV DIIHFWLQJ WKH JHQHUDWLRQVNLSSLQJ WUDQVIHU WD[ UHWXUQV RYHU ZKLFK WKH\ KDYH
H[DPLQDWLRQMXULVGLFWLRQ7KH\GRQRWLVVXHGHWHUPLQDWLRQOHWWHUVRQPDWWHUVFRQFHUQLQJWKHDSSOLFDWLRQRIWKHJHQHUDWLRQVNLSSLQJWUDQVIHUWD[EHIRUHWKHGLVWULEXWLRQRUWHUPLQDWLRQWDNHVSODFH

In employment and excise
tax matters

.04,QHPSOR\PHQWDQGH[FLVHWD[PDWWHUV'LUHFWRUVLVVXHGHWHUPLQDWLRQOHWWHUVLQUHVSRQVHWR
WD[SD\HUV¶ZULWWHQUHTXHVWVRQFRPSOHWHGWUDQVDFWLRQVRYHUZKLFKWKH\KDYHH[DPLQDWLRQMXULVGLFtion.
$OO GHWHUPLQDWLRQ OHWWHU UHTXHVWV UHJDUGLQJ HPSOR\PHQW VWDWXV HPSOR\HUHPSOR\HH UHODWLRQVKLSPDGHE\WD[SD\HUVWKDWDUHQRW)HGHUDODJHQFLHVDQGLQVWUXPHQWDOLWLHVRUWKHLUZRUNHUVPXVW
be submitted to the Internal Revenue Service at the address set forth on the current instructions
for Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and
Income Tax Withholding.
,IWKHVHUYLFHUHFLSLHQWWKH¿UPUHTXHVWVWKHGHWHUPLQDWLRQUHJDUGLQJHPSOR\PHQWVWDWXVWKH
¿UPZLOOUHFHLYHDQ\GHWHUPLQDWLRQOHWWHULVVXHG$FRS\ZLOODOVREHVHQWWRDQ\ZRUNHUVLGHQWL¿HG
LQWKHUHTXHVW,IWKHZRUNHUPDNHVWKHUHTXHVWDQGWKH¿UPKDVEHHQFRQWDFWHGIRULQIRUPDWLRQ
ERWKWKHZRUNHUDQGWKH¿UPZLOOUHFHLYHDQ\LVVXHGGHWHUPLQDWLRQOHWWHU7KHGHWHUPLQDWLRQOHWWHU
ZLOODSSO\WRDQ\LQGLYLGXDOVHQJDJHGE\WKH¿UPXQGHUVXEVWDQWLDOO\VLPLODUFLUFXPVWDQFHVSee
section 5.10 of this revenue procedure for requests regarding employment status made by Federal
DJHQFLHVDQGLQVWUXPHQWDOLWLHVRUWKHLUZRUNHUV

Requests concerning
income, estate, or gift tax
returns

.05$UHTXHVWUHFHLYHGE\D'LUHFWRURQDTXHVWLRQFRQFHUQLQJDQLQFRPHHVWDWHRUJLIWWD[
UHWXUQDOUHDG\¿OHGJHQHUDOO\ZLOOEHFRQVLGHUHGLQFRQQHFWLRQZLWKWKHH[DPLQDWLRQRIWKHUHWXUQ
,IDUHVSRQVHLVPDGHWRWKHUHTXHVWEHIRUHWKHUHWXUQLVH[DPLQHGLWZLOOEHFRQVLGHUHGDWHQWDWLYH
¿QGLQJLQDQ\ODWHUH[DPLQDWLRQRIWKDWUHWXUQ

Review of determination
letters

.06 Determination letters issued under sections 12.01 through 12.04 of this revenue procedure
DUH QRW UHYLHZHG E\ WKH$VVRFLDWH RI¿FHV EHIRUH WKH\ DUH LVVXHG ,I D WD[SD\HU EHOLHYHV WKDW D
GHWHUPLQDWLRQOHWWHURIWKLVW\SHLVLQHUURUWKHWD[SD\HUPD\DVNWKH'LUHFWRUWRUHFRQVLGHUWKH
PDWWHURUWRUHTXHVWWHFKQLFDODGYLFHIURPDQ$VVRFLDWHRI¿FHDVH[SODLQHGLQ5HY3URF
this Bulletin.
7KH SUHFHGLQJ VHQWHQFH GRHV QRW DSSO\ WR 66 UHTXHVWV XQGHU VHFWLRQ  ,I D WD[SD\HU
disagrees with a determination of employment status made in response to an SS-8 request, the
WD[SD\HUPD\UHTXHVWWKDWWKH663URJUDPUHFRQVLGHUWKHGHWHUPLQDWLRQOHWWHULIWKHWD[SD\HUKDV
additional information concerning the relationship that was not part of the original submission or
WKHWD[SD\HUFDQLGHQWLI\IDFWVWKDWZHUHSDUWRIWKHRULJLQDOVXEPLVVLRQWKDWWKHWD[SD\HUWKLQNV
were not fully considered.

January 4, 2021

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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
WD[SD\HUXQGHUVHFWLRQRIWKLVUHYHQXHSURFHGXUH
,ID¿HOGRI¿FHSURSRVHVWRUHDFKDFRQFOXVLRQFRQWUDU\WRWKDWH[SUHVVHGLQDGHWHUPLQDWLRQ
OHWWHUWKDWRI¿FHQHHGQRWUHIHUWKHPDWWHUWRWKH$VVRFLDWHRI¿FHDVLVUHTXLUHGIRUDOHWWHUUXOLQJ
IRXQGWREHLQHUURU7KH¿HOGRI¿FHPXVWKRZHYHUUHIHUWKHPDWWHUWRWKH$VVRFLDWHRI¿FHWKURXJK
WKHDSSURSULDWH'LUHFWRULILWGHVLUHVWRKDYHWKHUHYRFDWLRQRUPRGL¿FDWLRQRIWKHGHWHUPLQDWLRQ
OHWWHUOLPLWHGXQGHU†EH[FHSWLIWKHGHWHUPLQDWLRQOHWWHUKDVEHHQLVVXHGE\WKH&RPPLVVLRQHU7D[([HPSWDQG*RYHUQPHQW(QWLWLHVSee Rev. Proc. 2021-4 and Rev. Proc. 2021-5.

Taxpayer may request
that retroactive effect of
UHYRFDWLRQRUPRGL¿FDWLRQ
be limited

.028QGHU†EWKH6HUYLFHPD\SUHVFULEHWKHH[WHQWWRZKLFKDUHYRFDWLRQRUPRGL¿FDtion of a determination letter will be applied without retroactive effect. For determination letters
WKDWDUHQRWLVVXHGE\WKH&RPPLVVLRQHU7D[([HPSW*RYHUQPHQW(QWLWLHVD'LUHFWRUGRHVQRW
KDYHDXWKRULW\XQGHU†EWROLPLWWKHUHYRFDWLRQRUPRGL¿FDWLRQRIWKHGHWHUPLQDWLRQOHWWHU
7KHUHIRUHLIWKH¿HOGRI¿FHSURSRVHVWRUHYRNHRUPRGLI\DGHWHUPLQDWLRQOHWWHUWKHWD[SD\HUPD\
UHTXHVWOLPLWDWLRQRIWKHUHWURDFWLYHHIIHFWRIWKHUHYRFDWLRQRUPRGL¿FDWLRQE\DVNLQJWKH'LUHFWRU
WKDWLVVXHGWKHGHWHUPLQDWLRQOHWWHUWRVHHNWHFKQLFDODGYLFHIURPWKH$VVRFLDWHRI¿FHSee section
14.02 of Rev. Proc. 2021-2, this Bulletin.
$WD[SD\HUWRZKRPDGHWHUPLQDWLRQOHWWHUKDVEHHQLVVXHGE\WKH&RPPLVVLRQHU7D[([HPSW
DQG*RYHUQPHQW(QWLWLHVPD\UHTXHVWOLPLWLQJWKHUHWURDFWLYHHIIHFWRIDQ\UHYRFDWLRQRUPRGL¿cation of the determination letter pursuant to the procedures set forth in section 23 of Rev. Proc.
2021-4, or section 12.04 of 2021-5, this Bulletin.

Format of request

(1) Request for relief under § 7805(b) must be made in required format.$WD[SD\HU¶VUHTXHVWWROLPLWWKHUHWURDFWLYHHIIHFWRIWKHUHYRFDWLRQRUPRGL¿FDWLRQRIWKHGHWHUPLQDWLRQOHWWHU
must be in the form of, and meet the general requirements for, a technical advice request. See
section 14.02 of Rev. Proc. 2021-2, this Bulletin. The request must also—
DVWDWHWKDWLWLVEHLQJPDGHXQGHU†E
EVWDWHWKHUHOLHIVRXJKW
FH[SODLQWKHUHDVRQVDQGDUJXPHQWVLQVXSSRUWRIWKHUHOLHIVRXJKWLQFOXGLQJDGLVFXVVLRQ
of section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue
SURFHGXUHDQGDQ\RWKHUIDFWRUVDVWKH\UHODWHWRWKHWD[SD\HU¶VSDUWLFXODUVLWXDWLRQDQG
(d) include any documents bearing on the request.

Request for conference

Bulletin No. 2021–1

(2) Taxpayer may request a conference on application of § 7805(b). When technical advice
LV UHTXHVWHG UHJDUGLQJ WKH DSSOLFDWLRQ RI † E WKH WD[SD\HU KDV WKH ULJKW WR D FRQIHUHQFH
ZLWKWKH$VVRFLDWHRI¿FHWRWKHVDPHH[WHQWDVGRHVDQ\WD[SD\HUZKRLVWKHVXEMHFWRIDWHFKQLFDO
advice request. See section 14.04 of Rev. Proc. 2021-2, this Bulletin.

69

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

.01 If a Director receives a request for a determination letter but may not issue one under the
provisions of this revenue procedure, the Director will forward the request to the appropriate AsVRFLDWHRI¿FHIRUUHSO\7KH¿HOGRI¿FHZLOOQRWLI\WKHWD[SD\HUWKDWWKHPDWWHUKDVEHHQUHIHUUHG
'LUHFWRUVZLOODOVRUHIHUWRWKHDSSURSULDWH$VVRFLDWHRI¿FHDQ\UHTXHVWIRUDGHWHUPLQDWLRQOHWWHU
WKDWLQWKHLUMXGJPHQWVKRXOGKDYHWKHDWWHQWLRQRIWKH$VVRFLDWHRI¿FH7KH¿HOGRI¿FHZLOOQRWLI\
WKHWD[SD\HUWKDWWKHPDWWHUKDVEHHQUHIHUUHG

No-rule areas

.02 If the request involves an issue on which the Service will not issue a letter ruling or deterPLQDWLRQOHWWHUWKHUHTXHVWZLOOQRWEHIRUZDUGHGWRDQ$VVRFLDWHRI¿FH7KH'LUHFWRUZLOOQRWLI\
WKHWD[SD\HUWKDWWKH6HUYLFHZLOOQRWLVVXHDOHWWHUUXOLQJRUDGHWHUPLQDWLRQOHWWHURQWKHLVVXHSee
section 6 of this revenue procedure for a description of no-rule areas.

Requests for letter rulings

.03,IDQ$VVRFLDWHRI¿FHUHFHLYHVDUHTXHVWIRUDOHWWHUUXOLQJWKDWLWPD\QRWDFWXSRQXQGHU
VHFWLRQRIWKLVUHYHQXHSURFHGXUHWKH$VVRFLDWHRI¿FHPD\LQLWVGLVFUHWLRQIRUZDUGWKHUHTXHVW
WRWKH¿HOGRI¿FHWKDWKDVH[DPLQDWLRQMXULVGLFWLRQRYHUWKHWD[SD\HU¶VUHWXUQ7KHWD[SD\HUZLOOEH
QRWL¿HGRIWKLVDFWLRQ,IWKHUHTXHVWLVRQDQLVVXHRULQDQDUHDRIWKHW\SHGLVFXVVHGLQVHFWLRQRI
this revenue procedure and the Service decides not to issue a letter ruling or a determination letter,
WKH$VVRFLDWHRI¿FHZLOOQRWLI\WKHWD[SD\HUDQGZLOOWKHQIRUZDUGWKHUHTXHVWWRWKHDSSURSULDWH
¿HOGRI¿FHIRUDVVRFLDWLRQZLWKWKHUHODWHGUHWXUQ

Letter ruling request
mistakenly sent to a
Director

.04,IDUHTXHVWIRUDOHWWHUUXOLQJLVPLVWDNHQO\VHQWWRD'LUHFWRUWKH'LUHFWRUZLOOUHWXUQLWWR
WKHWD[SD\HUVRWKDWWKHWD[SD\HUFDQVHQGLWWRDQ$VVRFLDWHRI¿FH

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

.01 6HFWLRQZDVDGGHGWRWKH,QWHUQDO5HYHQXH&RGHE\VHFWLRQRIWKH([WHQVLRQRI
WKH7HPSRUDU\$VVLVWDQFHIRU1HHG\)DPLOLHV%ORFN*UDQW3URJUDP3XE/1RDPHQGed by section 891(a) of the American Jobs Creation Act of 2004, Pub. L. 108-357, and was made
SHUPDQHQWE\VHFWLRQRIWKH867URRS5HDGLQHVV9HWHUDQV¶&DUH.DWULQD5HFRYHU\DQG
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
SURJUDPDUHWRYDU\DFFRUGLQJWRFDWHJRULHVRUVXEFDWHJRULHVHVWDEOLVKHGE\WKH6HFUHWDU\
EHGHWHUPLQHGDIWHUWDNLQJLQWRDFFRXQWWKHDYHUDJHWLPHIRUDQGGLI¿FXOW\RIFRPSO\LQJZLWKUHTXHVWVLQHDFKFDWHJRU\RUVXEFDWHJRU\DQGEHSD\DEOHLQDGYDQFH7KH6HFUHWDU\LVWRSURYLGH
IRUH[HPSWLRQVDQGUHGXFHGIHHVXQGHUWKHSURJUDPDVWKH6HFUHWDU\GHWHUPLQHVWREHDSSURSULDWH

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70

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but the average fee applicable to each category or subcategory must not be less than the amount
VSHFL¿HGLQ†E
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GHWHUPLQDWLRQOHWWHUVDQGDGYDQFHSULFLQJDJUHHPHQWV
FORVLQJDJUHHPHQWVGHVFULEHGLQSDUDJUDSK$GRI$SSHQGL[$RIWKLVUHYHQXHSURFHGXUH DQG SUH¿OLQJ DJUHHPHQWV GHVFULEHG LQ 5HY 3URF   ,5%  RU LWV
VXFFHVVRU
UHQHZDORIDGYDQFHSULFLQJDJUHHPHQWV
UHFRQVLGHUDWLRQRIOHWWHUUXOLQJVRUGHWHUPLQDWLRQOHWWHUVDQG
VXSSOHPHQWDOOHWWHUUXOLQJVGHWHUPLQDWLRQOHWWHUVHWFWRFRUUHFWPLVWDNHVLQRULJLQDOOHWWHU
rulings, determination letters, etc.
Requests to which a user fee applies must be accompanied by the appropriate fee as determined
IURPWKHIHHVFKHGXOHSURYLGHGLQ$SSHQGL[$RIWKLVUHYHQXHSURFHGXUH7KHIHHPD\EHUHIXQGHG
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—
HOHFWLRQVPDGHSXUVXDQWWR†SHUWDLQLQJWRDXWRPDWLFH[WHQVLRQVRIWLPHsee
VHFWLRQRIWKLVUHYHQXHSURFHGXUH
ODWHLQLWLDOFODVVL¿FDWLRQHOHFWLRQVPDGHSXUVXDQWWR5HY3URF&%
(seeVHFWLRQRIWKLVUHYHQXHSURFHGXUH
(3) late S corporation and related elections made pursuant to Rev. Proc. 2013-30, 2013-36
I.R.B. 173 (seeVHFWLRQRIWKLVUHYHQXHSURFHGXUH
(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
SURFHGXUH
UHTXHVWVIRUKDUDVVPHQWFDPSDLJQOHWWHUUXOLQJVXQGHU6HFWLRQG
UHTXHVWIRU1HLJKERUKRRG/DQG8VH5XOHOHWWHUUXOLQJVXQGHU6HFWLRQE
LQIRUPDWLRQOHWWHUVRU
(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.

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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
VHHNLQJDOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHURQEHKDOIRIDSURJUDPRUDFWLYLW\IXQGHGE\)HGHUDO
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 proYLVLRQRIWKH&RGHRU
UHTXHVWVDVWRZKHWKHUDZRUNHULVDQHPSOR\HHIRU)HGHUDOHPSOR\PHQWWD[HVDQGLQFRPH
WD[ ZLWKKROGLQJ SXUSRVHV 6XEWLWOH & RI WKH &RGH VXEPLWWHG RQ )RUP 66 Determination of
Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, or its
equivalent.

Fee schedule

.05 7KHVFKHGXOHRIXVHUIHHVLVSURYLGHGLQ$SSHQGL[$RIWKLVUHYHQXHSURFHGXUH)RUWKHXVHU
fee requirements applicable to—
(1) requests for advance pricing agreements or renewals of advance pricing agreements, see
VHFWLRQRI5HY3URF,5%RU
(2) requests for letter rulings, determination letters, etc., under the jurisdiction of the CommisVLRQHU7(*(ZKLFKQRORQJHULQFOXGHFKDQJHVLQPHWKRGRIDFFRXQWLQJsee Rev. Proc. 2021-4
and Rev. Proc. 2021-5, this Bulletin.

Applicable user fee for a
request involving multiple
RI¿FHVIHHFDWHJRULHV
issues, transactions, or
entities

.06
5HTXHVWVLQYROYLQJVHYHUDORI¿FHV If a request dealing with only one transaction involves
PRUHWKDQRQHRI¿FHZLWKLQWKH6HUYLFHIRUH[DPSOHRQHLVVXHLVXQGHUWKHMXULVGLFWLRQRIWKH$VVRciate Chief Counsel (Passthroughs and Special Industries) and another issue is under the jurisdiction
RIWKH&RPPLVVLRQHU7(*(RQO\RQHIHHDSSOLHVQDPHO\WKHKLJKHVWIHHWKDWRWKHUZLVHZRXOG
DSSO\WRHDFKRIWKHRI¿FHVLQYROYHGSee Rev. Proc. 2021-4 and Rev. Proc. 2021-5, this Bulletin, for
WKHXVHUIHHVDSSOLFDEOHWRLVVXHVXQGHUWKHMXULVGLFWLRQRIWKH&RPPLVVLRQHU7(*(+RZHYHULIDQ
additional request is submitted after the original ruling is issued, regardless of whether it relates to
the same transaction or facts at issue in the earlier request, a new user fee applies.
(2) Requests involving several fee categories. If a request dealing with only one transaction
LQYROYHVPRUHWKDQRQHIHHFDWHJRU\RQO\RQHIHHDSSOLHVWKHKLJKHVWIHHWKDWRWKHUZLVHZRXOG
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

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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
WKHLQLWLDOUHTXHVW$QH[DPSOHRIDUHTXHVWLQYROYLQJXQUHODWHGWUDQVDFWLRQVLVDUHTXHVWLQYROYLQJ
relief under § 301.9100-3 and the underlying issue.
(5) Requests involving several entities.(DFKHQWLW\LQYROYHGLQDWUDQVDFWLRQIRUH[DPSOHD
UHRUJDQL]DWLRQWKDWGHVLUHVDVHSDUDWHOHWWHUUXOLQJLQLWVRZQQDPHPXVWSD\DVHSDUDWHIHHUHJDUGless of whether the transaction or transactions may be viewed as related. 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).
 5HTXHVWV PDGH E\ PDUULHG WD[SD\HUV ZKR ¿OH MRLQWO\$ PDUULHG FRXSOH ¿OLQJ D MRLQW
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.
See section 15.07 of this revenue procedure. If a spouse desires a ruling to be individually issued
to him or her, a separate fee must be paid for each individual request.
Applicable user fee for
requests for substantially
identical letter rulings or
closing agreements, or
identical changes in method
of accounting

.07
(1) In general.7KHXVHUIHHVSURYLGHGLQSDUDJUDSK$RI$SSHQGL[$RIWKLVUHYHQXHSURFHdure 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) H[FHSWIRUQRQDXWRPDWLF)RUPVLQFOXGHWKHIROORZLQJW\SHGRUSULQWHGODQJXDJHDW
WKHWRSRIWKHOHWWHUUXOLQJUHTXHVW³5(48(67)2586(5)((81'(56(&7,212)
5(9352&´
(b) OLVWRQWKH¿UVWSDJHRIWKHVXEPLVVLRQDOOWD[SD\HUVDQGHQWLWLHVDQGVHSDUDWHDQGGLVWLQFW
trades or businesses, including QSubs or single-member LLCs, requesting a letter ruling (includLQJWKHWD[SD\HULGHQWL¿FDWLRQQXPEHUDQGWKHDPRXQWRIXVHUIHHVXEPLWWHGIRUHDFKWD[SD\HU
HQWLW\RUVHSDUDWHDQGGLVWLQFWWUDGHRUEXVLQHVVDQG
(c) PDNHRQHSD\PHQWWRFRYHUDOOXVHUIHHV
If the Service determines that the letter ruling requests do not qualify for the user fee provided
LQSDUDJUDSK$RI$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHWKH6HUYLFHZLOOUHTXHVWWKHSURSHU
fee. See section 15.09 of this revenue procedure.
(2) Substantially identical letter rulings and closing agreements. The user fee provided in
SDUDJUDSK$DRI$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHDSSOLHVWRDWD[SD\HURUWD[SD\HUVUHquesting substantially identical letter rulings (including accounting period, method of accounting,
DQGHDUQLQJVDQGSUR¿WVUHTXHVWVRWKHUWKDQWKRVHVXEPLWWHGRQ)RUPApplication 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LQWKHIROORZLQJVLWXDWLRQV
D7KHWD[SD\HUVWRZKRPWKHOHWWHUUXOLQJVZLOOEHLVVXHGDUHPXOWLSOHHQWLWLHVZLWKDFRPPRQ
PHPEHUVSRQVRURUSDUHQWRUPXOWLSOHPHPEHUVRIDFRPPRQHQWLW\RUFRQVROLGDWHGJURXSRU

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E7KHWD[SD\HUVWRZKRPWKHOHWWHUUXOLQJVZLOOEHLVVXHGDUHSDUWLHVHQJDJHGWRJHWKHULQWKH
VDPHWUDQVDFWLRQDIIHFWLQJDOOUHTXHVWLQJWD[SD\HUV
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 subPLVVLRQ,QDGGLWLRQWKHWD[SD\HUVPXVWVWDWHWKDWWKHOHWWHUUXOLQJUHTXHVWVDQGDOOLQIRUPDWLRQ
DQGXQGHUO\LQJGRFXPHQWVDUHVXEVWDQWLDOO\LGHQWLFDODQGPXVWVSHFL¿FDOO\LGHQWLI\WKHH[WHQWWR
which the letter ruling requests, information, and underlying documents are not identical.
,IDWD[SD\HURUWD[SD\HUVUHTXHVWLQJUHGXFHGXVHUIHHVSXUVXDQWWRWKLVVHFWLRQDOVR
UHTXHVWDSUHVXEPLVVLRQFRQIHUHQFHSXUVXDQWWRVHFWLRQWKHWD[SD\HUVVKRXOGQRWLI\WKH
$VVRFLDWHRI¿FHDWRUEHIRUHWKHSUHVXEPLVVLRQFRQIHUHQFHWKDWWKHWD[SD\HUVLQWHQGWRUHTXHVW
UHGXFHGXVHUIHHVSXUVXDQWWRWKLVSDUDJUDSK$WWKHSUHVXEPLVVLRQFRQIHUHQFHWKHWD[SD\HUV
VKRXOGGLVFXVVZLWKWKH$VVRFLDWHRI¿FHKRZWKHOHWWHUUXOLQJUHTXHVWVZLOOVDWLVI\WKHUHTXLUHPHQWV
of this paragraph.
7KHUHGXFHGIHHIRUVXEVWDQWLDOO\LGHQWLFDOOHWWHUUXOLQJVLVDSSOLFDEOHWRWD[SD\HUVUHTXHVWLQJ
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
$FRI$SSHQGL[$RIWKLVUHYHQXHSURFHGXUHVKDOODSSO\WRDWD[SD\HUZKRVXEPLWVVXEstantially 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 submitWHGDQGDSSURYHGDQGLQFOXGHDFRS\RIWKHSULRUSODQDQGDSSURYDOVWDWHWKDWWKHVXEVHTXHQW
SODQLVVXEVWDQWLDOO\LGHQWLFDOWRWKHDSSURYHGSODQDQGGHVFULEHDQ\GLIIHUHQFHVEHWZHHQWKH
approved plan and the subsequent plan.
(4) Identical changes in method of accounting and related § 301.9100 letter rulings. A
FRPPRQVSRQVRURIPXOWLSOHHQWLWLHVFRPPRQSDUHQWRIDFRQVROLGDWHGJURXSRURWKHUWD[SD\HU
LVHOLJLEOHIRUWKHXVHUIHHVSURYLGHGLQSDUDJUDSKV$EDQGGRI$SSHQGL[$RIWKLVUHYHQXH
procedure when requesting an identical change in method of accounting on a single Form 3115,
Application for Change in Accounting MethodRUDQH[WHQVLRQRIWLPHWR¿OH)RUPXQGHU
§ 301.9100-3 for the identical change in method of accounting, for two or more of the following
in any combination—
DHQWLWLHVRIWKDWFRPPRQVSRQVRU
EPHPEHUVRIWKDWFRQVROLGDWHGJURXS
FVHSDUDWHDQGGLVWLQFWWUDGHVRUEXVLQHVVHVIRUSXUSRVHVRI†GRIWKDWWD[SD\HURU
member(s) of that consolidated group. Separate and distinct trades or businesses include QSubs
DQGVLQJOHPHPEHU//&V
(d) SDUWQHUVKLSVWKDWDUHZKROO\RZQHGZLWKLQWKDWFRQVROLGDWHGJURXSRU
(e) controlled foreign corporations (CFCs) and noncontrolled 10-percent owned foreign 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 noncontrolled 10-percent owned foreign corporations, as applicable, are members of that consolidated

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JURXSRULLWKHWD[SD\HULVWKHVROHFRQWUROOLQJ86VKDUHKROGHURIWKH&)&VRUWKHVROHGRPHVWLF
corporate shareholder of that noncontrolled 10-percent owned foreign corporation.
To qualify as an identical change in method of accounting, the multiple entities with a common
VSRQVRUWKHPXOWLSOHHQWLWLHVZKROO\RZQHGRUFRQWUROOHGE\DFRQVROLGDWHGJURXSRURWKHUWD[payer, 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,
H[FHSWIRUWKH†DDGMXVWPHQWV,IWKH$VVRFLDWHRI¿FHGHWHUPLQHVWKDWWKHUHTXHVWHGFKDQJHV
in method of accounting are not identical, additional user fees will be required before any letter
ruling is issued.
7KH WD[SD\HU FRPPRQ VSRQVRU RU FRPPRQ SDUHQW PXVW IRU HDFK DSSOLFDQW IRU ZKLFK WKH
change in method of accounting is being requested, attach to the Form 3115 a schedule providing
WKH QDPH HPSOR\HU LGHQWL¿FDWLRQ QXPEHU ZKHUH DSSOLFDEOH DQG † D DGMXVWPHQW ,I WKH
request is on behalf of eligible CFCs or noncontrolled 10-percent owned foreign corporations, the
WD[SD\HURUFRPPRQSDUHQWPXVWDWWDFKDVWDWHPHQWWKDW³>D@OOFRQWUROOLQJ86VKDUHKROGHUVDV
GH¿QHGLQ†FLRIDOOWKH&)&VWRZKLFKWKHUHTXHVWUHODWHVDUHPHPEHUVRIWKHFRPPRQSDUHQW¶VFRQVROLGDWHGJURXS´WKDW³>D@OOPDMRULW\GRPHVWLFFRUSRUDWHVKDUHKROGHUVDVGH¿QHG
in § 1.964-1(c)(5)(ii)) of all the noncontrolled 10-percent owned foreign corporations to which
WKHUHTXHVWUHODWHVDUHPHPEHUVRIWKHFRPPRQSDUHQW¶VFRQVROLGDWHGJURXS´WKDW³>W@KHWD[SD\HU
¿OLQJWKHUHTXHVWLVWKHVROHFRQWUROOLQJ86VKDUHKROGHUDVGH¿QHGLQ†FRIWKH
&)&VWRZKLFKWKHUHTXHVWUHODWHV´RUWKDW³>W@KHWD[SD\HU¿OLQJWKHUHTXHVWLVWKHVROHGRPHVWLFFRUSRUDWHVKDUHKROGHUDVGH¿QHGLQ†FRIWKHQRQFRQWUROOHGSHUFHQWRZQHG
foreign corporations to which the request relates,” as applicable. If the request is on behalf of
HOLJLEOHSDUWQHUVKLSVWKHFRPPRQSDUHQWPXVWDWWDFKDVWDWHPHQWWKDW³>D@OOSDUWQHUVKLSVWRZKLFK
WKHUHTXHVWUHODWHVDUHZKROO\RZQHGE\PHPEHUVRIWKHFRPPRQSDUHQW¶VFRQVROLGDWHGJURXS´
,QWKHFDVHRID†UHTXHVWIRUDQH[WHQVLRQRIWLPHWR¿OHD)RUPUHTXHVWLQJDQ
identical change in method of accounting for multiple entities with a common sponsor, multiple
PHPEHUV RI D FRQVROLGDWHG JURXS DQGRU PXOWLSOH VHSDUDWH DQG GLVWLQFW WUDGHV RU EXVLQHVVHV RI
DWD[SD\HURUPHPEHUVRIWKHFRQVROLGDWHGJURXSRUPXOWLSOHHOLJLEOH&)&VRUQRQFRQWUROOHG
SHUFHQWRZQHGIRUHLJQFRUSRUDWLRQVDSSOLFDQWVWKHWD[SD\HUFRPPRQVSRQVRURUFRPPRQ
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 that is subject to a user fee under this revenue procedure must be
accompanied by full payment. The user fees for all requests must be paid through www.pay.gov,
H[FHSWIRUUHTXHVWVIRUDGHWHUPLQDWLRQOHWWHUIURPD'LUHFWRUVHHSDUDJUDSK$RI$SSHQGL[
$ZKLFKDUHSD\DEOHE\FKHFNDQGPDLOHGDORQJZLWKWKHUHTXHVWIRUGHWHUPLQDWLRQOHWWHU

Effect of nonpayment
or payment of incorrect
amount

.09 ,IDUHTXHVWLVQRWPDWFKHGZLWKIXOOSD\PHQWWKHRI¿FHZLWKLQWKH6HUYLFHWKDWLVUHVSRQsible for issuing the letter ruling, determination letter, advance pricing agreement, closing agreePHQWRUUHFRQVLGHUDWLRQRIDOHWWHUUXOLQJRUGHWHUPLQDWLRQOHWWHUJHQHUDOO\ZLOOH[HUFLVHGLVFUHWLRQ
in deciding whether to immediately return the request. If a request is not immediately returned, the
WD[SD\HUZLOOEHFRQWDFWHGDQGJLYHQDUHDVRQDEOHDPRXQWRIWLPHWRVXEPLWWKHSURSHUIHH,IWKH
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
KDVEHHQUHFHLYHG7KHUHWXUQRIDUHTXHVWWRWKHWD[SD\HUPD\DGYHUVHO\DIIHFWVXEVWDQWLYHULJKWV
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.

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If a payment is made for more than the correct amount, the request will be accepted and the
DPRXQWRIWKHH[FHVVSD\PHQWZLOOEHUHWXUQHGWRWKHWD[SD\HU
,IDUXOLQJLVLVVXHGDQGEHFDXVHRIWKHUXOLQJWKHWD[SD\HU¶VJURVVLQFRPHLVUHGXFHGVXFKWKDW
WKHWD[SD\HUZRXOGKDYHTXDOL¿HGIRUDUHGXFHGXVHUIHHLQ$SSHQGL[$SDUDJUDSK$WKH
DPRXQWRIXVHUIHHSDLGLQH[FHVVRIWKHUHGXFHGIHHZLOOEHUHWXUQHGWRWKHWD[SD\HU
Refunds of user fee

.10 In general, user fees will not be refunded. User fees, however, will be refunded in the following situations.
(1)$XVHUIHHSDLGZLWKDUHTXHVWWRFRUUHFWDPLVWDNHRURPLVVLRQLQDSULRULVVXHGOHWWHUUXOLQJ
determination letter, etc., will be refunded if the Service determines that the Service was responVLEOHIRUWKHPLVWDNHRURPLVVLRQ
(2) A user fee paid with a request for relief under § 7805(b) in connection with the revocation
in whole or in part, of a previously issued letter ruling, determination letter, etc., will be refunded
if the relief is granted. (The user fee paid for the letter ruling, determination letter, etc., that was
UHYRNHGLVQHYHUUHIXQGHG
(3) $XVHUIHHSDLGZLWKDUHTXHVWIRUUHFRQVLGHUDWLRQRIWKH6HUYLFH¶VGHFLVLRQQRWWRUXOHRQ
an issue will be refunded if the Service agrees to rule on the issue and the user fee paid with the
initial request was not refunded.
(4) If the requested ruling, determination letter, etc., is not issued for any reason, and the Service
GHWHUPLQHVWKDWDUHIXQGLVDSSURSULDWHDIWHUWDNLQJLQWRDFFRXQWDOOWKHIDFWVDQGFLUFXPVWDQFHV
LQFOXGLQJWKHDPRXQWRIWKH6HUYLFH¶VWLPHDQGUHVRXUFHVVSHQWRQWKHUHTXHVWWKHXVHUIHHZLOO
be refunded.

Request for reconsideration
of user fee

.11 $WD[SD\HUZKREHOLHYHVWKHXVHUIHHFKDUJHGE\WKH6HUYLFHIRULWVUHTXHVWIRUDOHWWHUUXOing, 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
VKRXOGEHSURPLQHQWO\PDUNHG³86(5)((5(&216,'(5$7,215(48(67´1RXVHUIHHLV
UHTXLUHGIRUWKHVHUHTXHVWV7KHUHTXHVWVKRXOGEHPDUNHGIRUWKHDWWHQWLRQRI

If the matter involves
primarily:

Mark for the attention of:

Associate Chief Counsel
(Corporate) letter ruling
requests

Associate Chief Counsel (Corporate)

Associate Chief Counsel
(PSOR\HH%HQH¿WV
Exempt Organizations, and
Employment Taxes) letter
ruling requests

Deputy Associate Chief Counsel (
)
&RPSOHWHSDUHQWKHWLFDOE\XVLQJWKHDSSOLFDEOHGHVLJQDWLRQ³(PSOR\HH%HQH¿WV´RU³([HPSW
2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HV´

January 4, 2021

76

Bulletin No. 2021–1

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

Associate Chief Counsel (Financial Institutions and Products)

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

$VVRFLDWH&KLHI&RXQVHO,QFRPH7D[DQG$FFRXQWLQJ

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)

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

7KHDSSURSULDWH6%6(RI¿FLDOOLVWHGLQ$SSHQGL[)

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

'LUHFWRU(PSOR\HH3ODQV([DPLQDWLRQV
'LUHFWRU([HPSW2UJDQL]DWLRQV([DPLQDWLRQV
Director, Government Entities

SECTION 16. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 2020-1?

Bulletin No. 2021–1

________________________________
$GGQDPHRI¿HOGRI¿FHKDQGOLQJWKHUHTXHVW
The electronic submission procedures for ruling requests and non-automatic Forms 3115 established temporarily in Rev. Proc. 2020-29 have been permanently incorporated in sections 7,
DQG$SSHQGLFHV+DQG,KDYHEHHQDGGHGWRSURYLGHWKH028VQHFHVVDU\IRUWD[SD\HUVDQG
representatives to communicate with the Service using encrypted email attachments.

77

January 4, 2021

Section 7.01(4) has been amended to clarify that a request must state both whether the same
issue is presented in any return and whether any such return is currently or was previously under
H[DPLQDWLRQ
6HFWLRQV    DQG  KDYH EHHQ XSGDWHG WR UHÀHFW WKDW UXOLQJ DQG
change of accounting method requests should now be addressed to and will be initially controlled by the Technical Services Support Branch of the Legal Processing DiYLVLRQ ZLWKLQ $VVRFLDWH &KLHI &RXQVHO 3URFHGXUH  $GPLQLVWUDWLRQ &&3$/3'
TSS.
6HFWLRQ  KDV EHHQ XSGDWHG WR SHUPDQHQWO\ DOORZ WD[SD\HUV ¿OLQJ DXWRPDWLF )RUPV 
XQGHUWKHSURYLVLRQVRI5HY3URFWRVXEPLWWKHGXSOLFDWHFRS\RIWKH)RUPE\ID[
$SSHQGL[$6FKHGXOHRI8VHU)HHVKDVEHHQDPHQGHGZLWKUHYLVHGXVHUIHHVUHÀHFWLQJFRVWV
incurred by the Service to administer the ruling program.
Additional editorial and clarifying changes have been made throughout.
SECTION 17. WHAT
IS THE EFFECT OF
THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?

.015HY3URF,5%DVPRGL¿HGE\5HY3URF,5%
is superseded.

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

This revenue procedure is effective for all requests received on or after January 4, 2021. Rev.
3URFDVPRGL¿HGE\5HY3URFJRYHUQVUHTXHVWVUHFHLYHGSULRUWR-DQXDU\
2021.

SECTION 19.
PAPERWORK
REDUCTION ACT

The collections of information contained in this revenue procedure have been reviewed and
DSSURYHGE\WKH2I¿FHRI0DQDJHPHQWDQG%XGJHWLQDFFRUGDQFHZLWKWKH3DSHUZRUN5HGXFWLRQ
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,
SDUDJUDSK%RI$SSHQGL[$$SSHQGL[&$SSHQGL['$SSHQGL[(DQG
$SSHQGL[*VXEMHFWPDWWHU²UDWHRUGHUVUHJXODWRU\DJHQF\QRUPDOL]DWLRQ7KLVLQIRUPDWLRQLV
required to evaluate and process the request for a letter ruling or determination letter. In addition,
WKLVLQIRUPDWLRQZLOOEHXVHGWRKHOSWKH6HUYLFHGHOHWHFHUWDLQLQIRUPDWLRQIURPWKHWH[WRIWKH
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.
7KHOLNHO\UHVSRQGHQWVDUHEXVLQHVVHVRURWKHUIRUSUR¿WLQVWLWXWLRQVDQGWD[H[HPSWRUJDQL]DWLRQV
7KHHVWLPDWHGWRWDODQQXDOUHSRUWLQJDQGRUUHFRUGNHHSLQJEXUGHQLVKRXUV

January 4, 2021

78

Bulletin No. 2021–1

7KHHVWLPDWHGDQQXDOEXUGHQSHUUHVSRQGHQWUHFRUGNHHSHUYDULHVIURPWRKRXUVGHSHQGing on individual circumstances, with an estimated average burden of 80 hours. The estimated
QXPEHURIUHVSRQGHQWVDQGRUUHFRUGNHHSHUVLV
The estimated annual frequency of responses is on occasion.
%RRNVRUUHFRUGVUHODWLQJWRDFROOHFWLRQRILQIRUPDWLRQPXVWEHUHWDLQHGDVORQJDVWKHLUFRQWHQWVPD\EHFRPHPDWHULDOLQWKHDGPLQLVWUDWLRQRIDQ\LQWHUQDOUHYHQXHODZ*HQHUDOO\WD[UHWXUQVDQGWD[UHWXUQLQIRUPDWLRQDUHFRQ¿GHQWLDODVUHTXLUHGE\†
DRAFTING
INFORMATION

7KHSULQFLSDODXWKRURIWKLVUHYHQXHSURFHGXUHLV-RVKXD6LPPRQVRIWKH2I¿FHRI$VVRFLDWH
Chief Counsel (Procedure and Administration). For further information regarding this revenue
procedure for matters under the jurisdiction of—
 WKH$VVRFLDWH &KLHI &RXQVHO &RUSRUDWH FRQWDFW7 ,DQ 5XVVHOO RU -HDQ 5 %URGHULFN DW
(202) 317-3181 (not a toll-free call),
WKH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW
7D[HVFRQWDFW0LFKDHO%%OXPHQIHOGDWQRWDWROOIUHHFDOO
WKH$VVRFLDWH&KLHI&RXQVHO)LQDQFLDO,QVWLWXWLRQVDQG3URGXFWVFRQWDFW.6FRWW%URZQ
at (202) 317-6945 (not a toll-free call),
WKH$VVRFLDWH&KLHI&RXQVHO,QFRPH7D[DQG$FFRXQWLQJFRQWDFW50DWWKHZ.HOOH\DW
(202) 317-7002 (not a toll-free call),
(5) the Associate Chief Counsel (International), contact Nancy Galib at (202) 317-3800 (not a
toll-free call),
(6) the Associate Chief Counsel (Passthroughs and Special Industries), contact Anthony McQuillen at (202) 317-6850 (not a toll-free call), or
(7) the Associate Chief Counsel (Procedure and Administration), contact Jennifer Auchterlonie
at (202) 317-3400 (not a toll-free call).
For further information regarding user fees, contact the Technical Services Support Branch at
(202) 317-6828 (not a toll-free call).
)RUIXUWKHULQIRUPDWLRQUHJDUGLQJGHWHUPLQDWLRQOHWWHUV
/% ,WD[SD\HUVVKRXOGFRQWDFW0DULH*UDKDPLQWKH2I¿FHRIWKH$VVLVWDQW'HSXW\&RPPLVVLRQHU&RPSOLDQFH,QWHJUDWLRQ/% ,DWQRWDWROOIUHHFDOO
6%6( DQG : , WD[SD\HUV VKRXOG FRQWDFW WKH RI¿FHV OLVWHG LQ$SSHQGL[ ) RI WKLV 5HYHQXH
3URFHGXUHDQG
7(*(WD[SD\HUVVKRXOGDOVRUHIHUWR5HYHQXH3URFHGXUHVDQGWKLV%XOOHWLQ

Bulletin No. 2021–1

79

January 4, 2021

INDEX
References are to sections in Rev. Proc. 2021-1
Additional Information
– penalties of perjury statement required ...........................................................................................8.05(4)
– proposed deletions under § 6110 ...................................................................................................7.01(12)
– information requested during initial and subsequent contacts ............................................................ 8.05
failure to submit...............................................................................................................................8.05(3)
subsequent information after conference .......................................................................................... 10.06
– where and how to send .........................................................................................
Changes in Method of Accounting or Accounting Period
– applicable sections of Rev. Proc. 2021-1 for changes in method of accounting ................................. 9.23
– applicable sections of Rev. Proc. 2021-1 for accounting period .............................................$SSHQGL[*
– automatic change request procedures...........................................................$SSHQGL[*
– identical changes in method of accounting ......................................................... $SSHQGL[$
– user fees................................................................................................................................... $SSHQGL[$
Checklist Required........................................................................................................ $SSHQGL[&
Conferences
– offered ............................................................................................................................................... 10.02
after conference of right .................................................................................................................... 10.05
application of § 6110 ................................................................................................................ 7.01(12)(e)
– requesting a conference ...................................................................................................................7.02(6)
– scheduling .............................................................................................................................. 10.01, 10.02
application of § 7805(b) ................................................................................................ 11.11(2), 13.02(2)
pre-submission conferences .............................................................................................................. 10.07
telephone conferences ....................................................................................................................... 10.08
'H¿QLWLRQV
±$VVRFLDWHRI¿FH ...............................................................................................................................1.01(2)
– closing agreement................................................................................................................................ 2.02
– determination letter ............................................................................................................................. 2.03
– Director ...........................................................................................................................................1.01(3)
±¿HOGRI¿FH........................................................................................................................................1.01(4)
±WD[SD\HU ..........................................................................................................................................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)
±LQIRUPDORSLQLRQH[SUHVVHG ................................................................................................................. 8.04
±RUDODGYLFHWRWD[SD\HUV...................................................................................................................2.05(2)
Electronic Facsimile
– to receive letter ruling ....................................................................................................... 7.02(5), 9.04(3)
– to receive request for additional information .................................................................... 7.02(5), 9.04(3)
– to submit additional information ....................................................................................... 8.05(5), 9.08(5)
– to submit letter ruling request .........................................................................................................7.04(2)
– to submit non-automatic Forms 3115..............................................................................................9.05(2)
Employee Plans and Exempt Organizations
±MXULVGLFWLRQRI&RPPLVVLRQHU7D[([HPSWDQG*RYHUQPHQW(QWLWLHV'LYLVLRQ ................................. 4.02
– user fees............................................................................................................................................... 4.02

January 4, 2021

80

Bulletin No. 2021–1

Encrypted Email Attachment
– MOU to receive encrypted email ............................................................................................$SSHQGL[+
– MOU to send encrypted email ................................................................................................. $SSHQGL[,
– to receive ruling................................................................................................................. 7.02(5), 9.04(3)
– to receive request for additional information .................................................................... 7.02(5), 9.04(3)
– to submit additional information ....................................................................................... 8.05(5), 9.08(5)
– to submit letter ruling request .........................................................................................................7.04(3)
– to submit non-automatic Forms 3115..............................................................................................9.05(3)
Estate Tax Matters
– issuance of determination letters ............................................................................................ 12.02, 12.05
– issuance of letter rulings...................................................................................................................... 5.06
under § 2032A(c) ................................................................................................................................... 5.07
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 ruling................................................................................................................. 7.02(5), 9.04(3)
– to receive request for additional information .................................................................... 7.02(5), 9.04(3)
– to submit additional information ....................................................................................... 8.05(5), 9.08(5)
– to submit automatic Forms 3115 .....................................................................................................9.06(2)
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(16)(a)
– form for submission of additional information ...............................................................................8.05(4)
– required with draft letter ruling ........................................................................................................... 8.07
– signature requirements ............................................................................................................. 7.01(16)(b)
Pending Letter Ruling Requests
– when to attach a copy to return .......................................................................................................7.05(2)
 HVWDWHWD[PDWWHUV ................................................................................................................................. 5.06
±ZKHQWRQRWLI\$VVRFLDWHRI¿FH ........................................................................................................... 7.05
 HVWDWHWD[PDWWHUV ................................................................................................................................. 5.06
Power of Attorney
– Form 2848 ....................................................................................................................... 7.01(15), 7.02(2)
 RULJLQDOVHQWWRWKHWD[SD\HU ............................................................................................................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(15)
Public Disclosure of Information Letters................................................................................................ 2.04
Public Inspection Under § 6110 .........................................................................................................7.01(12)
– signature requirements ............................................................................................................. 7.01(12)(c)
Representatives
– compliance with Treasury Department Circular No. 230 .............................................................7.01(14)
– power of attorney required ............................................................................................................7.01(15)
– requirements ..................................................................................................................................7.01(14)
 DXWKRUL]HGUHSUHVHQWDWLYHV ........................................................................................................ 7.01(14)(a)

Bulletin No. 2021–1

81

January 4, 2021

 DXWKRUL]HGEDVHGRQUHODWLRQVKLS .............................................................................................. 7.01(14)(b)
return preparer .......................................................................................................................... 7.01(14)(c)
foreign representative ............................................................................................................... 7.01(14)(d)
5HWURDFWLYH5HYRFDWLRQRU0RGL¿FDWLRQ
– 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
– effect on a letter ruling ...................................................................................................................... 11.04
– request to limit retroactive effect .......................................................................................................11.11
Sample of a Letter Ruling Request.............................................................................. $SSHQGL[%
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 .........................................................................$SSHQGL[$
Tax Exempt and Government Entities (TE/GE)
±MXULVGLFWLRQRI&RPPLVVLRQHU7D[([HPSWDQG*RYHUQPHQW(QWLWLHV'LYLVLRQ ................................. 4.02
– user fees............................................................................................................................................... 4.02
User Fees
– schedule of user fees ............................................................................................................... $SSHQGL[$
– 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 ..........................................................................................
hand delivery ..................................................................................................................... 7.04(1), 8.05(1)
Withdrawal of Letter Ruling and Determination Letter Requests ...................................................... 7.08

January 4, 2021

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APPENDIX A
SCHEDULE OF USER FEES
127(3D\PHQWPXVWEHLQ86GROODUVDQGPDGHWKURXJKZZZSD\JRYIRUDOOUHTXHVWVRWKHUWKDQUHTXHVWVIRUDGHWHUPLQDWLRQOHWWHU
IURPD'LUHFWRUVHHSDUDJUDSK$RIWKLVDSSHQGL[ZKLFKDUHSD\DEOHE\FKHFNDQGPDLOHGDORQJZLWKWKHUHTXHVWIRUGHWHUPLnation letter. See section 15.09 of this revenue procedure.
(A) FEE SCHEDULE
CATEGORY

(1) User fee for a request for a determination letter from a Director.
The user fee for each determination letter request governed by Rev. Proc.
2021-1, 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.([FHSW
for the user fees for advance pricing agreements and renewals, the reduced
IHHVSURYLGHGLQSDUDJUDSK$RIWKLVDSSHQGL[WKHXVHUIHHVSURYLGHGLQ
SDUDJUDSK$RIWKLVDSSHQGL[DQGWKHH[HPSWLRQVSURYLGHGLQVHFWLRQ
15.04 of this revenue procedure, the user fee for each request for a letter
ruling or closing agreement under the jurisdiction of the Associate Chief
&RXQVHO&RUSRUDWHWKH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HVWKH$VVRFLDWH&KLHI&RXQVHO
(Financial Institutions and Products), the Associate Chief Counsel (Income
7D[DQG$FFRXQWLQJWKH$VVRFLDWH&KLHI&RXQVHO,QWHUQDWLRQDOWKH$VVRciate Chief Counsel (Passthroughs and Special Industries), or the Associate
&KLHI&RXQVHO3URFHGXUHDQG$GPLQLVWUDWLRQLVDVIROORZV
(a) Accounting periods
(i) Form 1128, Application to Adopt, Change, or Retain a Tax
YearH[FHSWDVSURYLGHGLQSDUDJUDSK$DRIWKLVDSSHQGL[
(ii) Requests made on Part II of Form 2553, Election by a Small
Business CorporationWRXVHD¿VFDO\HDUEDVHGRQDEXVLQHVVSXUSRVHH[FHSWDVSURYLGHGLQSDUDJUDSK$DRI
WKLVDSSHQGL[
(iii) /HWWHU UXOLQJ UHTXHVWV IRU H[WHQVLRQV RI WLPH WR ¿OH )RUP
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
H[FHSWDVSURYLGHGLQSDUDJUDSK$DRIWKLVDSSHQGL[
(b) Changes in Methods of Accounting
(i) Non-automatic Form 3115, Application for Change in Accounting MethodH[FHSWDVSURYLGHGLQSDUDJUDSK$D
RUERUERIWKLVDSSHQGL[
(ii) /HWWHU UXOLQJ UHTXHVWV IRU H[WHQVLRQV RI WLPH WR ¿OH )RUP
3115, Application for Change in Accounting Method, under
†H[FHSWDVSURYLGHGLQSDUDJUDSK$DRU
ERUGRIWKLVDSSHQGL[
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. SeeVHFWLRQDQG$SSHQGL[*RIWKLVUHYHQXHSURFHGXUHIRUWKHOLVWRIDXWRPDWLFFKDQJHUHTXHVWSURFHGXUHVSXEOLVKHGDQGRU
in effect as of December 31, 2020.

Bulletin No. 2021–1

83

USER FEE FOR REUSER FEE FOR REQUESTS RECEIVED QUESTS RECEIVED AFPRIOR TO FEBRUARY TER FEBRUARY 3, 2021
4, 2021



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.





















January 4, 2021

CATEGORY

(c) (i) /HWWHU UXOLQJ UHTXHVW IRU UHOLHI XQGHU †  H[FHSW
as provided in paragraph (A)(4)(a) or (b), or (5)(a) of this
DSSHQGL[
(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H[FHSWDVSURYLGHGLQSDUDJUDSK$DRUERUDRIWKLVDSSHQGL[
(d) Requests for closing agreements on a proposed transaction or on a
completed transaction before a return for the transaction has been
¿OHGLQZKLFKDOHWWHUUXOLQJRQWKDWWUDQVDFWLRQLVQRWUHTXHVWHG
RULVVXHGH[FHSWDVSURYLGHGLQSDUDJUDSK$DRUEDQGLQ
SDUDJUDSK$RIWKLVDSSHQGL[
(e) $UHTXHVWIRUD)RUHLJQ,QVXUDQFH([FLVH7D[:DLYHU$JUHHPHQW
127($WD[SD\HUZKRUHFHLYHVUHOLHIXQGHU†IRUH[DPSOH
DQH[WHQVLRQRIWLPHWR¿OH)RUPApplication for Change in Accounting Method) will be charged a separate user fee for the letter ruling request
RQWKHXQGHUO\LQJLVVXHIRUH[DPSOHWKHDFFRXQWLQJSHULRGRUPHWKRGRI
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
DSHUVRQDOH[HPSWRUJDQL]DWLRQJRYHUQPHQWDOHQWLW\RUEXVLQHVVWD[LVVXH
LVSURYLGHGLQWKHIROORZLQJVLWXDWLRQVLIWKHSHUVRQSURYLGHVWKHFHUWL¿FDWLRQGHVFULEHGLQSDUDJUDSK%RIWKLVDSSHQGL[
(a) 5HTXHVW LQYROYHV D WD[ LVVXH IURP D SHUVRQ ZLWK JURVV LQFRPH
(as determined under paragraphs (B)(2), (3), (4), and (5) of this
DSSHQGL[RIOHVVWKDQ
(b) 5HTXHVW LQYROYHV D WD[ LVVXH IURP D SHUVRQ ZLWK JURVV LQFRPH
(as determined under paragraphs (B)(2), (3), (4), and (5) of this
DSSHQGL[RIOHVVWKDQPLOOLRQDQGRUPRUH
(5) User fee for substantially identical letter ruling requests or closing
agreements, identical changes in method of accounting, or plans from
issuing authorities under § 25(c)(2)(B). If the requirements of section
RIWKLVUHYHQXHSURFHGXUHDUHVDWLV¿HGWKHXVHUIHHIRUWKHIROORZLQJ
VLWXDWLRQVLVDVIROORZV
(a) Substantially identical letter rulings and closing agreements requested (other than changes in methods of accounting requested
on Form 3115) Requests for substantially identical letter rulings
or closing agreements for multiple entities with a common member, sponsor, or parent, or for multiple members of a common
entity or consolidated group, or for parties engaged together in
WKHVDPHWUDQVDFWLRQDIIHFWLQJDOOUHTXHVWLQJWD[SD\HUVIRUHDFK
DGGLWLRQDOOHWWHUUXOLQJUHTXHVWDIWHUWKHIHHRUUHGXFHG
IHHDVDSSOLFDEOHKDVEHHQSDLGIRUWKH¿UVWOHWWHUUXOLQJUHTXHVW
These requests may include, but are not limited to, requests for
substantially identical letter rulings for two or more identical
WUXVWVPXOWLSOHEHQH¿FLDULHVRIDWUXVWDWUXVWGLYLGHGLQWRLGHQWLFDOVXEWUXVWVVSRXVHVPDNLQJVSOLWJLIWVRUVHULHVIXQGVZLWKLQD
VLQJOHWUXVWRUVHULHVRUJDQL]DWLRQ

January 4, 2021

84

USER FEE FOR REUSER FEE FOR REQUESTS RECEIVED QUESTS RECEIVED AFPRIOR TO FEBRUARY TER FEBRUARY 3, 2021
4, 2021


























Bulletin No. 2021–1

CATEGORY

USER FEE FOR REUSER FEE FOR REQUESTS RECEIVED QUESTS RECEIVED AFPRIOR TO FEBRUARY TER FEBRUARY 3, 2021
4, 2021

127((DFKHQWLW\RUPHPEHUWKDWLVHQWLWOHGWRWKHXVHUIHHXQGHUSDUDJUDSK$DRIWKLVDSSHQGL[WKDWUHFHLYHVUHOLHIXQGHU†
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separate user fee for the letter ruling request on the underlying issue.
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(B) PROCEDURAL MATTERS
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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 affect consideration of your
request.
(Insert the date of request)
Internal Revenue Service
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A. STATEMENT OF FACTS




3.


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Facts Relating to Transaction
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B. RULING REQUESTED

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C. STATEMENT OF LAW
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believed to be contrary to the position advanced in the ruling request. SeeVHFWLRQVDQG@
D. ANALYSIS
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to identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 7.01(3),
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E. CONCLUSION
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F. PROCEDURAL MATTERS
1.

Revenue Procedure 2021-1 Statements
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party is located in a foreign country, provide the statement required by section 7.01(7) regarding whether this letter ruling
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Sincerely yours,
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Signature
Date
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person signing request
DECLARATION>SeeVHFWLRQ@

Bulletin No. 2021–1

89

January 4, 2021

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(Insert the name of the taxpayer)
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Signature

Title

Date

(must be signed by taxpayer, not by taxpayer’s representative, see section 7.01(16)(b) of this revenue procedure)
Typed or printed name of
person signing declaration

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January 4, 2021

90

Bulletin No. 2021–1

APPENDIX C
CHECKLIST
IS YOUR LETTER RULING REQUEST COMPLETE?
INSTRUCTIONS
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TXHVWLRQE\FLUFOLQJ³File Typeapplication/pdfFile TitleIRB 2021-01 (Rev. 01/04/2021)SubjectIRS IRBAuthorIRSFile Modified2021-12-09File Created2021-12-09