Rp 2023-1

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

ADMINISTRATIVE
Rev. Proc. 2023-1, page 1.

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.
2022-1 superseded.

Finding Lists begin on page ii.




Bulletin No. 2023–1
January 3, 2023

Part III
26 CFR § 601.201 Rulings and determination letters

Rev. Proc. 2023-1
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

.02 Issues under the jurisdiction of the Associate Chief Counsel (Employee Benefits, Exempt Organizations,
and Employment Taxes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
.03 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and Products) . . . . . . . . . . . . . . . . .11

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

.01 Issues involving alcohol, tobacco, and firearms taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

.02 Certain issues involving qualified retirement plans, individual retirement accounts (IRAs), and
exempt organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
SECTION 5. UNDER WHAT CIRCUMSTANCES DO THE ASSOCIATE OFFICES ISSUE LETTER RULINGS? . . . . . .12
.01 In income and gift tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
.02 Special relief for late S corporation and related elections in lieu of letter ruling process . . . . . . . . . . . . . . . . . . . . . . . . .13

.03 A § 301.9100 request for extension of time for making an election or for other relief . . . . . . . . . . . . . . . . . . . . . . . . . . .13
(1) Format of request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
(2) Period of limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
(3) Taxpayer must notify the Associate office if examination of its return begins while the request is pending. . . . . . .14
(4) Associate office will notify the examination agent, Appeals officer, or attorney of a § 301.9100 request
if the taxpayer’s return is being examined by a field office or is being considered by an Appeals office or
a Federal court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009-41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
(6) Relief for late classification election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
.04 Determinations under § 999(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
.05 In matters involving § 367 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

.06 In estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

.07 In matters involving additional estate tax under § 2032A(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

.08 In matters involving qualified domestic trusts under § 2056A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

.09 In generation-skipping transfer tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Bulletin No. 2023–1

1

January 3, 2023

.10 In employment and excise tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
.11 In procedural and administrative matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
.12 In Indian tribal government matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
(1) Definition of Indian tribal government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
(2) Inclusion in list of tribal governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
.13 On constructive sales price under § 4216(b) or § 4218(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
.14 In exempt organizations matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
.15 In qualified retirement plan and IRA matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
.16 A request to revoke an election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
.17 Under some circumstances before the issuance of a regulation or other published guidance . . . . . . . . . . . . . . . . . . . . . .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

.01 Ordinarily not if the request involves an issue under examination or consideration or in litigation . . . . . . . . . . . . . . . . .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
(2) Significant issue ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .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

.06 Ordinarily not where the request does not address the tax status, liability, or reporting obligations of
the requester . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
.07 Ordinarily not to foreign governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

.08 Ordinarily not on Federal tax consequences of proposed legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .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

.13 Not on property conversions after return filed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
.14 Circumstances under which determination letters are not issued by a Director. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
SECTION 7. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
(6) Statement regarding interpretation of a substantive provision of an income or estate tax treaty . . . . . . . . . . . . . . . .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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
(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
(13) Signature by taxpayer or authorized representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
(14) Authorized representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
(15) Power of Attorney and Declaration of Representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
(16) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

January 3, 2023

2

Bulletin No. 2023–1

.02

.03

.04

.05

.06
.07
.08

(17) Sample format for a letter ruling request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
(18) Checklist for letter ruling requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
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 or recipients of a copy or copies of a letter ruling or
a determination letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
(3) To request a particular conclusion on a proposed transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
(4) To request expedited handling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
(5) To request the receipt of any document related to letter ruling request by fax, electronic facsimile, or
encrypted email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
(6) To request a conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Letter ruling requests involving welfare benefit funds (including voluntary employees’ beneficiary
associations (VEBAs)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Pending letter ruling requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
(1) Circumstances under which the taxpayer with a pending letter ruling request must notify the Associate office . . . 39
(2) Taxpayer must notify the Associate office if a return is filed and must attach the request to the return . . . . . . . . . . 40
When to attach letter ruling or determination letter to return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
How to check on status of request for letter ruling or determination letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Request for letter ruling or determination letter may be withdrawn or Associate office may decline to
issue letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
(2) Notification of appropriate Service official . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

SECTION 8. HOW DO THE ASSOCIATE OFFICES HANDLE LETTER RULING REQUESTS? . . . . . . . . . . . . . . . . . . . 41

.01 Technical Services Support Branch receives, initially controls, and refers the requests to the appropriate
Associate office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

.02 Branch representative of the Associate office contacts taxpayer within 21 calendar days. . . . . . . . . . . . . . . . . . . . . . . . . 41

.03 Determines if transaction can be modified to obtain favorable letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

.04 Not bound by informal opinion expressed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

.05 May request additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
(1) Additional information must be submitted within 21 calendar days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
(2) Extension of reply period if justified and approved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
(3) Letter ruling request closed if the taxpayer does not submit additional information. . . . . . . . . . . . . . . . . . . . . . . . . 43
(4) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
(5) Transmitting request and submitting additional information by fax, electronic facsimile, or encrypted
email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
(6) Submitting additional information by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
(7) Identifying information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

.06 Near the completion of the ruling process, advises the taxpayer of conclusions and, if the Associate office
will rule adversely, offers the taxpayer the opportunity to withdraw the letter ruling request. . . . . . . . . . . . . . . . . . . . . . 44

.07 May request that taxpayer submit draft proposed letter ruling near the completion of the ruling process . . . . . . . . . . . . 44

.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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

.09 Sends a copy of the letter ruling to appropriate Service official. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
SECTION 9. WHAT ARE THE SPECIFIC AND ADDITIONAL PROCEDURES FOR A REQUEST FOR
A CHANGE IN METHOD OF ACCOUNTING FROM THE ASSOCIATE OFFICES? . . . . . . . . . . . . . . . . . . 45

.01 Automatic and non-automatic change in method of accounting requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
(1) Automatic change in method of accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
(2) Non-automatic change in method of accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

.02 Ordinarily only one change in method of accounting on a Form 3115, Application for Change in Accounting
Method, and a separate Form 3115 for each taxpayer and for each separate and distinct trade or business. . . . . . . . . . . 46

Bulletin No. 2023–1

3

January 3, 2023

.03 Information required with a Form 3115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
(1) Facts and other information requested on Form 3115 and in applicable revenue procedures. . . . . . . . . . . . . . . . . . 46
(2) Statement of contrary authorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
(3) Copies of all contracts, agreements, and other documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
(4) Analysis of material facts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
(5) Information regarding whether same issue is in an earlier return under examination. . . . . . . . . . . . . . . . . . . . . . . . 47
(6) Statement regarding prior requests for a change in method of accounting and other pending requests . . . . . . . . . . 47
(7) Statement identifying pending legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
(8) Authorized representatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
(9) Power of Attorney and Declaration of Representative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
(10) Tax Information Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
(11) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
.04 Additional procedural information required in certain circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
(1) Recipients of original and copy of change in method of accounting correspondence. . . . . . . . . . . . . . . . . . . . . . . . 49
(2) To request expedited handling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
(3) To request the receipt of the change in method of accounting letter ruling or any other correspondence
related to Form 3115 by fax, electronic facsimile, or encrypted email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . 49
(4) To request a conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
.05 Submitting non-automatic Forms 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
(1) Submission by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
(2) Submission by electronic facsimile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
(3) Submission by encrypted email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
.06 Submitting automatic Forms 3115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
(1) Submission by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
(2) Submission by fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
.07 Technical Services Support Branch receives, initially controls, and refers the Form 3115 to
the appropriate Associate office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
.08 Additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
(1) Reply period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
(2) Request for extension of reply period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
(3) Penalties of perjury statement for additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
(4) Identifying information included in additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
(5) Transmitting request and submitting additional information by fax, electronic facsimile, or encrypted
email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
(6) Submitting additional information by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
(7) Failure to timely submit additional information to the Associate office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
.09 Circumstances in which the taxpayer must notify the Associate office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
.10 Determines if proposed method of accounting can be modified to obtain favorable letter ruling. . . . . . . . . . . . . . . . . . . 55
.11 Near the completion of processing the Form 3115, advises the taxpayer if the Associate office will rule
adversely and offers the taxpayer the opportunity to withdraw Form 3115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
.12 Non-automatic Form 3115 may be withdrawn or Associate office may decline to issue a change in
method of accounting letter ruling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
(2) Notification of appropriate Service official.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
.13 How to check status of a pending non-automatic Form 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
.14 Service is not bound by informal opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
.15 Single letter ruling issued to a taxpayer or consolidated group for qualifying identical change in
method of accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
.16 Letter ruling ordinarily not issued for one of two or more interrelated items or submethods. . . . . . . . . . . . . . . . . . . . . . 56
.17 Consent Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
.18 A copy of the change in method of accounting letter ruling is sent to appropriate Service officials. . . . . . . . . . . . . . . . . 57
.19 Consent to change a method of accounting may be relied on subject to limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
.20 Change in method of accounting letter ruling does not apply to another taxpayer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
.21 Associate office discretion to permit requested change in method of accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
.22 List of automatic change in method of accounting request procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
.23 Other sections of this revenue procedure that are applicable to Form 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

January 3, 2023

4

Bulletin No. 2023–1

SECTION 10. HOW ARE CONFERENCES FOR LETTER RULINGS SCHEDULED?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

.01 Schedules a conference if requested by taxpayer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

.02 Permits taxpayer one conference of right. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

.03 Disallows verbatim recording of conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

.04 Makes tentative recommendations on substantive issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

.05 May offer additional conferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

.06 Requires written confirmation of information presented at conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

.07 May schedule a pre-submission conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
(1) Taxpayer may request a pre-submission conference in writing or by telephone. . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
(2) Pre-submission conference held in person or by telephone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
(3) Certain information required to be submitted to the Associate office prior to the pre-submission conference. . . . . 64
(4) Discussion of substantive issues not binding on the Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

.08 May schedule a conference to be held by telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
SECTION 11. WHAT EFFECT WILL A LETTER RULING HAVE?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

.01 May be relied on subject to limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

.02 Will not apply to another taxpayer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

.03 Will be used by a field office in examining the taxpayer’s return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

.04 May be revoked or modified if found to be in error or there has been a change in law. . . . . . . . . . . . . . . . . . . . . . . . . . . 65

.05 Letter ruling revoked or modified based on material change in facts applied retroactively . . . . . . . . . . . . . . . . . . . . . . . 66

.06 Not otherwise generally revoked or modified retroactively. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

.07 Retroactive effect of revocation or modification applied to a particular transaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

.08 Retroactive effect of revocation or modification applied to a continuing action or series of actions . . . . . . . . . . . . . . . . 67

.09 Generally not retroactively revoked or modified if related to sale or lease subject to excise tax . . . . . . . . . . . . . . . . . . . 67

.10 May be retroactively revoked or modified when transaction is entered into before the issuance of the letter ruling. . . . 67

.11 Taxpayer may request that retroactive effect of revocation or modification be limited. . . . . . . . . . . . . . . . . . . . . . . . . . . 67
(1) Request for relief under § 7805(b) must be made in required format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
(2) Taxpayer may request a conference on application of § 7805(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
SECTION 12. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS? . . . . . . . . 68

.01 In income and gift tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.02 In estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.03 In generation-skipping transfer tax matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.04 In employment and excise tax matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.05 In tax-exempt matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.06 Requests concerning income, estate, or gift tax returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.07 Review of determination letters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

.01 Has same effect as a letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

.02 Taxpayer may request that retroactive effect of revocation or modification be limited. . . . . . . . . . . . . . . . . . . . . . . . . . . 70
(1) Request for relief under § 7805(b) must be made in required format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
(2) Taxpayer may request a conference on application of § 7805(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
SECTION 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN
A DIRECTOR AND AN ASSOCIATE OFFICE?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.01 Requests for determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.02 No-rule areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.03 Requests for letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.04 Letter ruling request mistakenly sent to a Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER RULINGS
AND DETERMINATION LETTERS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.01 Legislation authorizing user fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.02 Requests to which a user fee applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

.03 Requests to which a user fee does not apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

.04 Exemptions from the user fee requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Bulletin No. 2023–1

5

January 3, 2023

.05 Fee schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
.06 Applicable user fee for a request involving multiple offices, fee categories, issues, transactions, or entities. . . . . . . . . . 73
(1) Requests involving several offices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
(2) Requests involving several fee categories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
(3) Requests involving several issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
(4) Requests involving several unrelated transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
(5) Requests involving several entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
(6) Requests made by married taxpayers who file jointly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
.07 Applicable user fee for requests for substantially identical letter rulings or closing agreements, or
identical changes in method of accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
(2) Substantially identical letter rulings and closing agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
(3) Substantially identical plans under § 25(c)(2)(B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
(4) Identical changes in method of accounting and related § 301.9100 letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . 75
.08 Method of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
.09 Effect of nonpayment or payment of incorrect amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
.10 Refunds of user fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
.11 Request for reconsideration of user fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

SECTION 16. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2022-1?. . . . . . . . 79
SECTION 17. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?. . . . . . . . . . . . 79
SECTION 18. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE?. . . . . . . . . . . . . . . . . . . . . . . . . . . 79
SECTION 19. PAPERWORK REDUCTION ACT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
DRAFTING INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
INDEX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
APPENDIX A—SCHEDULE OF USER FEES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
APPENDIX B—SAMPLE FORMAT FOR A LETTER RULING REQUEST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
APPENDIX C—CHECKLIST: IS YOUR LETTER RULING REQUEST COMPLETE?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
APPENDIX D—ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLAN RULING REQUESTS . . . . . . . . . 98
APPENDIX E—ADDITIONAL CHECKLIST FOR CHURCH PLAN RULING REQUESTS . . . . . . . . . . . . . . . . . . . . . . . . 99
APPENDIX F—CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR
REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES . . . . . . . . . . . . 100

.01 Checklists, guideline revenue procedures, and notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

.02 Safe harbor revenue procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

.03 Automatic change in accounting period revenue procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
APPENDIX G—MEMORANDUM OF UNDERSTANDING ACKNOWLEDGING RISK WITH EMAIL. . . . . . . . . . . . . 110
APPENDIX H—MEMORANDUMS OF UNDERSTANDING AGREEING TO USE ENCRYPTED EMAIL
ATTACHMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

.01 Agreement to use encrypted email attachments (compressed Zip format) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

.02 Agreement to use encrypted email attachments (Adobe Acrobat Pro password encryption) . . . . . . . . . . . . . . . . . . . . . 114

.03 Agreement to use encrypted email attachments (Microsoft Office 2016/365 password encryption). . . . . . . . . . . . . . . . 117

January 3, 2023

6

Bulletin No. 2023–1

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

Description of terms used in
this revenue procedure

This revenue procedure explains how the Service provides advice to taxpayers on issues
under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel
(Employee Benefits, Exempt Organizations, and Employment Taxes), the Associate Chief Counsel
(Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting),
the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and
Special Industries), and the Associate Chief Counsel (Procedure and Administration). It explains
the forms of advice and the manner in which advice is requested by taxpayers and provided by
the Service. A sample format for a letter ruling request is provided in Appendix B. See section
4 of this revenue procedure for 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
the Associate offices. The four operating divisions are:
(a) Large Business & International Division (LB&I), which generally serves corporations, S
corporations, and partnerships, with assets in excess of $10 million. It also serves U.S. citizens
and residents with offshore activities and non-residents with U.S. activities.
(b) Small Business/Self-Employed Division (SB/SE), which generally serves corporations,
including S corporations, and partnerships, with assets less than or equal to $10 million;
filers of gift, estate, excise, employment and fiduciary returns; individuals filing an individual
Federal income tax return with accompanying Schedule C (Profit or Loss From Business (Sole
Proprietorship)), Schedule E (Supplemental Income and Loss), Schedule F (Profit or Loss From
Farming), or Form 2106, Employee Business Expenses;
(c) Wage and Investment Division (W&I), which generally serves individuals with wage and
investment income only (and with no international tax returns) filing an individual Federal income
tax return without accompanying Schedule C, E, or F, or Form 2106; and
(d) Tax Exempt and Government Entities Division (TE/GE), which serves three distinct taxpayer
segments: employee plans (including IRAs), exempt organizations, and government entities.
(2) the term “Associate office” refers to the Office of Associate Chief Counsel (Corporate), the
Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment
Taxes), the Office of Associate Chief Counsel (Financial Institutions and Products), the Office of
Associate Chief Counsel (Income Tax and Accounting), the Office of Associate Chief Counsel
(International), the Office of Associate Chief Counsel (Passthroughs and Special Industries), or
the Office of Associate Chief Counsel (Procedure and Administration), as appropriate.
(3) the term “Director” refers to the Practice Area Director, LB&I; Director, Field Operations,
LB&I; Area Director, Field Examination, SB/SE; Director, Specialty Examination Policy, SB/SE;
Program Manager, Estate & Gift Tax Policy, SB/SE; Program Manager, Employment Tax Policy,
SB/SE; Program Manager, Excise Tax Policy, SB/SE; Director, Return Integrity & Compliance
Services, W&I; Director, Employee Plans; Director, Employee Plans, Rulings and Agreements;
Director, Employee Plans Examinations; Director, Exempt Organizations; Director, Exempt
Organizations, Rulings and Agreements; Director, Exempt Organizations Examinations; Director,
Government Entities, as appropriate.
(4) the term “field office” refers to the respective offices of the Directors, as appropriate.

Bulletin No. 2023–1

7

January 3, 2023

(5) the term “taxpayer” includes all persons subject to any provision of the Internal Revenue
Code and, when appropriate, their representatives. More specifically, the term includes tax-exempt
organizations, as well as issuers of tax-exempt obligations, mortgage credit certificates, and tax
credit bonds.
(6) the terms “Appeals” and “Appeals office” refer to the Internal Revenue Service Independent
Office of Appeals.
Updated annually

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

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

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

Letter ruling

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

Closing agreement

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

January 3, 2023

8

Bulletin No. 2023–1

a “mass closing agreement” will be entered into with the taxpayer who is authorized by the others
to represent the class.
Determination letter

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

Information letter

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

Oral Advice

.05
(1) No oral rulings and no written rulings in response to oral requests. The Service does not
orally issue letter rulings or determination letters, nor does it issue letter rulings or determination
letters in response to oral requests from taxpayers. Service employees ordinarily will discuss

Bulletin No. 2023–1

9

January 3, 2023

with taxpayers or their representatives inquiries about whether the Service will rule on particular
issues and about procedural matters regarding the submission of requests for letter rulings or
determination letters for a particular case.
(2) Discussion possible on substantive issues. At the discretion of the Service and as
time permits, Service employees may also discuss substantive issues with taxpayers or their
representatives. Such a discussion will not bind the Service or the Office of Chief Counsel, and it
cannot be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).
Service employees who are not directly involved in the examination, appeal, or litigation of
particular substantive tax issues will not discuss those issues with taxpayers or their representatives
unless the discussion is coordinated with Service employees who are directly involved. The
taxpayer or the taxpayer’s representative ordinarily will be asked whether an oral request for
advice or information relates to a matter pending before another office of the Service or before a
Federal court.
If a tax issue is not under examination, in Appeals, or in litigation, the tax issue may be discussed
even though the issue is affected by a nontax issue pending in litigation.
A taxpayer may seek oral technical guidance from a taxpayer service representative in a field
office or Service Center when preparing a return or report.
The Service does not respond to letters seeking to confirm the substance of oral discussions, and
the absence of a response to such a letter is not a confirmation.
(3) Oral guidance is advisory only, and the Service is not bound by it. Oral guidance is
advisory only, and the Service is not bound by it, for example, when examining the taxpayer’s
return.
SECTION 3. ON
WHAT ISSUES MAY
TAXPAYERS REQUEST
WRITTEN ADVICE
UNDER THIS REVENUE
PROCEDURE?

Taxpayers may request letter rulings, information letters, and closing agreements under this
revenue procedure on issues within the jurisdiction of the Associate offices. Taxpayers uncertain
as to whether an Associate office has jurisdiction with regard to a specific factual situation may call
the telephone number for the Associate office listed in section 10.07(1) of this revenue procedure.

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

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

Except as provided in section 6.14 of this revenue procedure, taxpayers also may request
determination letters from the Director in the appropriate operating division. See sections 7 and
12 of this revenue procedure. For determination letters from TE/GE, see Rev. Proc. 2023-4 and
Rev. Proc. 2023-5, this Bulletin.

For information on letter rulings under § 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 § 355
see the IRS Statement issued on March 12, 2019 that indefinitely extends the pilot program in

January 3, 2023

10

Bulletin No. 2023–1

Rev. Proc. 2017-52, 2017-41 I.R.B. 283 (amplified and modified by Rev. Proc. 2018-53, 2018-43
I.R.B. 667). See the IRS Statement issued on October 13, 2017 for information regarding letter
rulings involving retention of stock, drop-spin liquidate transactions, and transfers of a portion
of a subsidiary’s assets to its corporate shareholder in transactions not qualifying under § 332 or
§ 355 but that are intended to qualify as tax-free. These IRS Statements are available at https://
www.irs.gov/newsroom/statements-from-office-of-the-chief-counsel.
Issues under the
jurisdiction of the
Associate Chief Counsel
(Employee Benefits,
Exempt Organizations, and
Employment Taxes)

.02 Issues under the jurisdiction of the Associate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment Taxes) include those that involve the application of
employment taxes and taxes on self-employment income, exemption requirements for tax-exempt
organizations, tax treatment (including application of the unrelated business income tax) of taxexempt organizations (including federal, state, local, and Indian tribal governments), political
organizations described in § 527, qualified tuition programs described in § 529, qualified ABLE
programs described in § 529A, trusts described in § 4947(a), certain excise taxes, disclosure
obligations and information return requirements of tax-exempt organizations, employee benefit
programs (including executive compensation arrangements, qualified retirement plans, deferred
compensation plans, and health and welfare benefit programs) and IRAs, issues integrally related
to employee benefit programs and IRAs (such as, for example, the sale of stock to employee stock
ownership plans or eligible worker-owned cooperatives under § 1042), and changes in method of
accounting associated with employee benefit programs.
Note that certain issues involving exempt organizations, employee plans, and government
entities fall under the jurisdiction of the Commissioner, TE/GE, of the Internal Revenue Service.
See Rev. Proc. 2023-4 and Rev. Proc. 2023-5, 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
Products) include those that involve income taxes and changes in method of accounting of
banks, savings and loan associations, real estate investment trusts (REITs), regulated investment
companies (RICs), real estate mortgage investment conduits (REMICs), insurance companies
and products, tax-exempt obligations, mortgage credit certificates, tax credit bonds (including
specified tax credit bonds), build America bonds, and financial products.
For the procedures to obtain letter rulings involving tax-exempt state and local obligations, see
Rev. Proc. 96-16, 1996-1 C.B. 630.

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

.04 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting)
include those that involve recognition and timing of income and deductions of individuals and
corporations, sales and exchanges, capital gains and losses, installment sales, equipment leasing,
long-term contracts, inventories, amortization, depreciation, the alternative minimum tax, net
operating losses generally, including changes in method of accounting for these issues, and
accounting periods. (Note that certain issues involving individual retirement accounts (IRAs) are
under the jurisdiction of the Commissioner, TE/GE. See section 4.02 of this revenue procedure).

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

.05 Issues under the jurisdiction of the Associate Chief Counsel (International) include the tax
treatment of nonresident aliens and foreign corporations, withholding of tax on nonresident aliens
and foreign corporations, foreign tax credit, determination of sources of income, income from
sources outside the United States, subpart F questions, domestic international sales corporations
(DISCs), foreign sales corporations (FSCs), exclusions under § 114 for extraterritorial income
(ETI), international boycott determinations, treatment of certain passive foreign investment
companies, income affected by treaty, U.S. possessions, and other matters relating to the activities
of non-U.S. persons within the United States or U.S.-related persons outside the United States,
and changes in method of accounting for these persons.

Bulletin No. 2023–1

11

January 3, 2023

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
Industries) include those that involve income taxes of S corporations (except accounting periods
and methods) and certain noncorporate taxpayers (including partnerships, common trust funds,
and trusts), entity classification, estate (excluding § 6166), gift, generation-skipping transfer, and
certain excise taxes, depletion, and other engineering issues, cooperative housing corporations,
farmers’ cooperatives under § 521, the low-income housing credit under § 42, the New Markets
Tax Credit under § 45D, the rehabilitation credit under § 47, disabled access credit, qualified
electric vehicle credits, research and experimental expenditures, shipowners’ protection and
indemnity associations under § 526, and certain homeowners associations under § 528.

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

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

SECTION 4. ON WHAT
ISSUES MUST WRITTEN
ADVICE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?
Issues involving alcohol,
tobacco, and firearms taxes

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

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

.02 The procedures for obtaining certain letter rulings, closing agreements, determination
letters, information letters, and oral advice on qualified retirement plans and IRAs that are under
the jurisdiction of the Commissioner, TE/GE, are provided in Rev. Proc. 2023-4, this Bulletin.
Rev. Proc. 2023-4 also includes the procedures for issuing determination letters on the qualified
status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans
under §§ 401, 403(a), 409, and 4975(e)(7), and the status for exemption of any related trusts or
custodial accounts under § 501(a). See also Rev. Proc. 2023-5, this Bulletin, for the procedures for
issuing determination letters on the tax-exempt status of organizations under § 501 and § 521, the
foundation status of organizations described in § 501(c)(3) and the foundation status of nonexempt
charitable trusts described in § 4947(a)(1).
For the user fee requirements applicable to requests under the jurisdiction of the Commissioner,
TE/GE, see Section 30 of Rev. Proc. 2023-4, and Section 14 of Rev. Proc. 2023-5.

SECTION 5.
UNDER WHAT
CIRCUMSTANCES
DO THE ASSOCIATE
OFFICES ISSUE LETTER
RULINGS?

January 3, 2023

12

Bulletin No. 2023–1

In income and gift tax
matters

.01 In income and gift tax matters, an Associate office generally issues a letter ruling on a
proposed transaction or on a completed transaction if the letter ruling request is submitted before
a return containing a tax position on the completed transaction is filed.
An Associate office will not ordinarily issue a letter ruling on a completed transaction if the letter
ruling request is submitted after a return containing a tax position on the completed transaction is
filed. “Not ordinarily” means that unique and compelling reasons must be demonstrated to justify
the issuance of a letter ruling submitted after the return is filed for the year in which the transaction
is completed. The taxpayer must contact the field office having audit jurisdiction over their return
and obtain the field’s consent to the issuance of such a letter ruling. See section 7.05(2) of this
revenue procedure.

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

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

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

.03 An Associate office will consider a request for an extension of time for making an election or
other application for relief under § 301.9100-3 of the Treasury Regulations, even if submitted after
the return covering the issue presented in the § 301.9100 request has been filed, an examination of
the return has begun, the issues in the return are being considered by Appeals or a Federal court, or
the liability reflected on the return has been assessed and subject to collection. Except for certain
requests pertaining to applications for recognition of tax exemption under the jurisdiction of the
Commissioner, TE/GE, a § 301.9100 request is a letter ruling request. Therefore, the § 301.9100
request should be submitted pursuant to this revenue procedure. However, a § 301.9100 request
involving recharacterization of an IRA (see § 1.408A-5, Q&A-6) should be submitted pursuant
to Rev. Proc. 2023-4, this Bulletin. An election made pursuant to § 301.9100-2 for an automatic
extension of time is not a letter ruling request and does not require payment of any user fee. See
§ 301.9100-2(d) and section 15.03(1) of this revenue procedure.
(1) Format of request. A § 301.9100 request (other than an election made pursuant to
§ 301.9100-2 and certain requests pertaining to applications for recognition of tax exemption
under the jurisdiction of the Commissioner, TE/GE which are addressed in Rev. Proc. 2023-5)
must be in the general form of, and meet the general requirements for, a letter ruling request.
These requirements are given in section 7 of this revenue procedure. A § 301.9100 request must
include an affidavit and declaration from the taxpayer and other parties having knowledge or
information about the events that led to the failure to make a valid regulatory election and to the
discovery of the failure. See § 301.9100-3(e)(2) and (e)(3). In addition, a § 301.9100 request must
include the information required by § 301.9100-3(e)(4).
(2) Period of limitation. The filing of a request for relief under § 301.9100 does not suspend
the running of any applicable period of limitation. See § 301.9100-3(d)(2). The Associate office
ordinarily will not issue a § 301.9100 ruling if the period of limitation on assessment under
§ 6501(a) for the taxable year in which an election should have been made, or for any taxable years
that would have been affected by the election had it been timely made, will expire before receipt of
a § 301.9100 letter ruling. See § 301.9100-3(c)(1)(ii). If, however, the taxpayer consents to extend
the period of limitation on assessment under § 6501(c)(4) for the taxable year in which the election
should have been made and for any taxable years that would have been affected by the election
had it been timely made, the Associate office may issue the letter ruling. See § 301.9100-3(d)(2).
Note that the filing of a claim for refund under § 6511 does not extend the period of limitation
on assessment. If § 301.9100-3 relief is granted, the Associate office may require the taxpayer to
consent to an extension of the period of limitation on assessment. See § 301.9100-3(d)(2).

Bulletin No. 2023–1

13

January 3, 2023

(3) Taxpayer must notify the Associate office if examination of its return begins while
the request is pending. The taxpayer must notify the Associate office if the Service begins an
examination of the taxpayer’s return for the taxable year in which an election should have been
made, or for any taxable years that would have been affected by the election had it been timely
made, while a §  301.9100-3 request is pending. This notification must include the name and
telephone number of the examining agent. See § 301.9100-3(e)(4)(i) and section 7.05(1)(b) of this
revenue procedure.
(4) Associate office will notify examination agent, Appeals officer, or attorney of a
§ 301.9100 request if the taxpayer’s return is being examined by a field office or is being
considered by an Appeals office or a Federal court. If the taxpayer’s return for the taxable year
in which an election should have been made, or for any taxable years that would have been affected
by the election had it been timely made, is being examined by a field office or considered by an
Appeals office or a Federal court, the Associate office will notify the appropriate examination
agent, Appeals officer, or attorney that a § 301.9100 request has been submitted to the Associate
office. The examination agent, Appeals officer, or attorney is not authorized to deny consideration
of a § 301.9100 request. The letter ruling will be mailed to the taxpayer and a copy will be sent
to the Appeals officer, attorney, or appropriate Service official in the operating division that has
examination jurisdiction over the taxpayer’s tax return.
(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009-41. Eligible entities
requesting a letter ruling because they do not meet all of the eligibility requirements of section
4.01 of Rev. Proc. 2009-41, 2009-39 I.R.B. 439, must include either the following representation
as part of the entity’s request for a letter ruling or an explanation regarding why they do not
qualify to do so: “All required U.S. tax and information returns of the entity (or, if the entity was
not required to file any such returns under the desired classification, then all required U.S. tax and
information returns of each affected person as defined in Section 4.02 of Rev. Proc. 2009-41) were
filed timely or within 6 months of the due date of the respective return (excluding extensions)
as if the entity classification election had been in effect on the requested date. No U.S. tax or
information returns were filed inconsistently with those described in the prior sentence.”
(6) Relief for late classification election. In lieu of requesting a letter ruling under § 301.91001 through §  301.9100-3 and this revenue procedure, entities that satisfy the requirements set
forth in section 4.01 of Rev. Proc. 2009-41, 2009-39 I.R.B. 439, may apply for late classification
election relief under Rev. Proc. 2009-41. Requests for such relief are not subject to user fees. See
section 3.01 of Rev. Proc. 2009-41 and section 15.03(2) of this revenue procedure.
Determinations under
§ 999(d)

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

In matters involving § 367

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

January 3, 2023

14

Bulletin No. 2023–1

in which the taxpayer inappropriately characterizes the transaction under the reorganization
provisions.
In estate tax matters

.06 In general, the Associate Chief Counsel (Passthroughs and Special Industries) issues
letter rulings on transactions affecting the estate tax on the prospective estate of a living person.
The Associate office will not issue letter rulings for prospective estates on computations of tax,
actuarial factors, or factual matters. With respect to the transactions affecting the estate tax of the
decedent’s estate, generally the Associate office issues letter rulings before the decedent’s estate
tax return is filed.
If the taxpayer is requesting a letter ruling regarding a decedent’s estate tax and the estate tax
return is due to be filed before the letter ruling is expected to be issued, the taxpayer should obtain
an extension of time for filing the return and should notify the Associate office branch considering
the letter ruling request that an extension has been obtained.
If the return is filed before the letter ruling is received from the Associate office, the taxpayer
must disclose on the return that a letter ruling has been requested, attach a copy of the pending
letter ruling request to the return, and notify the Associate office that the return has been filed. See
section 7.05(2) of this revenue procedure. The Associate office will make every effort to issue the
letter ruling within 3 months of the date the return was filed.
If the taxpayer requests a letter ruling after the return is filed, but before the return is examined,
the taxpayer must notify the field office having jurisdiction over the return that a letter ruling has
been requested, attach a copy of the pending letter ruling request, and notify the Associate office
that a return has been filed. See section 7.05(2) of this revenue procedure. The Associate office
will make every effort to issue the letter ruling within 3 months of the date the return has been
filed.
If the letter ruling cannot be issued within that 3-month period, the Associate office will notify
the field office having jurisdiction over the return, which may, by memorandum to the Associate
office, grant an additional period for the issuance of the letter ruling.

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

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

In matters involving
qualified domestic trusts
under § 2056A

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

In generation-skipping
transfer tax matters

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

In employment and excise
tax matters

.10 In employment and excise tax matters, the Associate offices issue letter rulings on proposed
transactions and on completed transactions, if the letter ruling request is submitted before the
return is filed for the year in which the transaction is completed.

Bulletin No. 2023–1

15

January 3, 2023

Letter ruling requests regarding employment status (employer/employee relationship) from
Federal agencies and instrumentalities or their workers must be submitted to the Internal Revenue
Service as set forth in the current instructions for Form SS-8, Determination of Worker Status
for Purposes of Federal Employment Taxes and Income Tax Withholding. If the Federal agency
or instrumentality service recipient (the firm) makes the request, the firm will receive any issued
letter ruling. A copy will also be sent to any identified workers. If the worker makes the request
and the firm has been contacted for information, both the worker and the firm will receive any
issued letter ruling. The letter ruling will apply to any individuals engaged by the firm under
substantially similar circumstances. See section 12.04 of this revenue procedure for requests
regarding employment status made by taxpayers other than Federal agencies and instrumentalities
or their workers.
In procedural and
administrative matters

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

In Indian tribal government
matters

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

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

January 3, 2023

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

16

Bulletin No. 2023–1

In exempt organizations
matters

.14 In exempt organizations matters, the Associate Chief Counsel (Employee Benefits, Exempt
Organizations, and Employment Taxes) generally issues letter rulings on proposed transactions
or on completed transactions if the letter ruling request is submitted before the return is filed for
the year in which the transaction is completed. The Associate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment Taxes) will not ordinarily issue a letter ruling on a
completed transaction if the letter ruling request is submitted after the return is filed for the year
in which the transaction is completed. “Not ordinarily” means that unique and compelling reasons
must be demonstrated to justify the issuance of a letter ruling submitted after the return is filed for
the year in which the transaction is completed. The taxpayer must contact the field office having
audit jurisdiction over their return and obtain the field’s consent to the issuance of such a letter
ruling.
See Rev. Proc. 2023-5, this Bulletin, for the procedures for issuing determination letters on
issues under the jurisdiction of the Director Exempt Organizations Rulings and Agreements,
including determination letters on the tax-exempt status of organizations under § 501 and § 521,
the foundation status of organizations described in §  501(c)(3), and the foundation status of
nonexempt charitable trusts described in § 4947(a)(1).

In qualified retirement plan
and IRA matters

.15 In qualified retirement plan and IRA matters (other than those listed in Rev. Proc. 20234, this Bulletin), the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and
Employment Taxes) will generally issue letter rulings on proposed transactions and on completed
transactions, if the letter ruling request is submitted before the return is filed for the year in which
the transaction is completed, including those involving:
(1) §§ 72 (other than the computation of the exclusion ratio), 219, 381(c)(11), 402, 403(b)
(except with respect to whether the form of a plan satisfies the requirements of § 403(b) as provided
in Rev. Proc. 2023-4), 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, and 4980;
(2) Waiver of the minimum funding standard (see Rev. Proc. 2004-15, 2004-1 C.B. 490, section
3.04 of which is modified by Rev. Proc. 2023-4);
(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,
1979-2 C.B. 576);
(4) With respect to employee stock ownership plans and tax credit employee stock ownership
plans, §§ 409, 1042, 4975(d)(3) and 4975(e)(7). Qualification issues arising under these sections
(as well as under §§ 401-420 generally) are generally within the jurisdiction of Employee Plans
Determinations. However, see Rev. Proc. 2023-3, this Bulletin, section 4.02(12);
(5) Abatement of first tier excise taxes under § 4962;
(6) Relief under § 301.9100-1 that is not related to Roth IRA recharacterizations; and
(7) Grants of extensions of time other than pursuant to § 301.9100-1.

A request to revoke an
election

Bulletin No. 2023–1

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

17

January 3, 2023

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
letter ruling request to revoke the election.
Under some circumstances
before the issuance of
a regulation or other
published guidance

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

SECTION 6.
UNDER WHAT
CIRCUMSTANCES DOES
THE SERVICE NOT
ISSUE LETTER RULINGS
OR DETERMINATION
LETTERS?
Ordinarily not if the
request involves an
issue under examination
or consideration or in
litigation

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

January 3, 2023

18

Bulletin No. 2023–1

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. 2023-3 and
Rev. Proc. 2023-7, this Bulletin, provide a list of these areas. This list is not all-inclusive because
the Service may decline to issue a letter ruling or a determination letter when appropriate in the
interest of sound tax administration, including due to resource constraints, or on other grounds
whenever warranted by the facts or circumstances of a particular case.
Instead of issuing a letter ruling or determination letter, the Service may, when it is considered
appropriate and in the interest of sound tax administration, issue an information letter calling
attention to well-established principles of tax law.
If the Service determines that it is not in the interest of sound tax administration to issue a letter
ruling or determination letter due to resource constraints, it will adopt a consistent approach with
respect to taxpayers that request a ruling on the same issue. The Service will also consider adding
the issue to the no rule list at the first opportunity. See sections 2.01 and 3.02 of Rev. Proc. 2023-3.

Ordinarily not on part of
an integrated transaction

.03 (1) General rule. An Associate office ordinarily will not issue a letter ruling on only part
of an integrated transaction. If a part of a transaction falls under a no-rule area, a letter ruling on
other parts of the transaction may be issued. Before preparing the letter ruling request, a taxpayer
should call a branch having jurisdiction for the matters on which the taxpayer is seeking a letter
ruling to discuss whether the Associate office will issue a letter ruling on part of the transaction.
Significant issue ruling. (a) No rule areas. The Service will not rule on the qualification of any
transaction under § 332, § 351, or § 1036, or (except as provided in paragraph (b) of this section
6.03(2)) on whether a transaction constitutes a reorganization within the meaning of § 368 (other
than under either § 368(a)(1)(D) and § 355 or § 368(a)(1)(G) and § 355), regardless of whether
such transaction is part of an integrated transaction (see section 3.01(60) of Rev. Proc. 2023-3,
this Bulletin). Instead, the Associate Chief Counsel (Corporate) will only issue a letter ruling
on significant issues (within the meaning of section 3.01(60) of Rev. Proc. 2023-3) presented
in a transaction described in § 332, § 351, § 368 (other than under § 368(a)(1)(D) and § 355 or
§ 368(a)(1)(D) and § 355), or § 1036. For example, the Service may rule on significant issues
under § 1.368-1(d) (continuity of business enterprise) and § 1.368-1(e) (continuity of interest).
Letter rulings requested under this section 6.03(2)(a) are subject to the no-rule policies of Rev.
Proc. 2023-3.
(b) Section 355 distributions and related transactions. Pursuant to section 4 of Rev. Proc.
2017-52, 2017-41 I.R.B. 283 (amplified and modified by Rev. Proc. 2018-53, 2018-43 I.R.B.
667), in lieu of requesting a Transactional Ruling regarding a Covered Transaction, a taxpayer
may request a Significant Issue Ruling. Letter rulings requested under this section 6.03(2)(b) are
subject to the policies of Rev. Proc. 2023-3. However, the Service will not rule on any aspect of
a Covered Transaction, including any significant issue, if section 5.01(3) of Rev. Proc. 2023-3
applies, and the Service will ordinarily not rule on any aspect of a Covered Transaction, including
any significant issue, if section 4.01(30) of Rev. Proc. 2023-3 applies.
Submission requirements. Before preparing a letter ruling request under section 6.03(2) of this
revenue procedure involving significant issues presented in a transaction described in § 332, § 351,
§ 355, § 368, or § 1036, the taxpayer is encouraged to call the Office of Associate Chief Counsel
(Corporate) at the telephone number provided in section 10.07(1)(a) of this revenue procedure to
discuss whether the Service will entertain a letter ruling request under section 6.03(2). The Service
reserves the right to rule on any other aspect of the transaction (including ruling adversely) to the
extent the Service believes it is in the best interests of tax administration. Cf. section 2.01 of Rev.
Proc. 2023-3.

Bulletin No. 2023–1

19

January 3, 2023

The taxpayer may request rulings on one or more significant issues in a single letter ruling
request. Letter ruling requests under section 6.03(2) must include the following for each significant
issue:
(a) A narrative description of the transaction that puts the issue in context;
(b) A statement identifying the issue;
(c) An analysis of the relevant law, which should set forth the authorities most closely related to
the issue and explain why these authorities do not resolve the issue, and an explanation concerning
why the issue is significant within the meaning of section 3.01(60) of Rev. Proc. 2023-3; and
(d) The precise ruling(s) requested.
The taxpayer should consult other published authorities (see, for example, Appendix F of this
revenue procedure, which identifies certain checklist and guideline revenue procedures including
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.)
If the Service issues a letter ruling on a significant issue under section 6.03(2), then the letter
ruling will state that no opinion is expressed as to any issue or step not specifically addressed by
the letter. In addition, letter rulings issued under section 6.03(2) will contain the following (or
similar) language:
This letter is issued pursuant to section 6.03(2) of Rev. Proc. 2023-1, 2023-1 I.R.B. 1,
regarding one or more significant issues under § 332, § 351, § 355, § 368, or § 1036. The
ruling[s] contained in this letter only address[es] one or more significant issues involved
in the transaction. This Office expresses no opinion as to the overall tax consequences of
the transactions described in this letter or as to any issue not specifically addressed by the
ruling[s] below.
Ordinarily not on which of
two entities is a common
law employer

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

Ordinarily not to business
associations or groups

.05 The Service ordinarily does not issue letter rulings or determination letters to business,
trade, or industrial associations or to similar groups concerning the application of the tax laws
to members of the group. Groups and associations, however, may submit suggestions of generic
issues that could be appropriately addressed in revenue rulings. See Rev. Proc. 89-14, 1989-1
C.B. 814, which states the objectives of, and standards for, the publication of revenue rulings and
revenue procedures in the Internal Revenue Bulletin. See also Rev. Proc. 2016-19, 2016-13 I.R.B.
497, which describes procedures for taxpayers and other entities to submit issues for consideration
under the Service’s Industry Issue Resolution (IIR) Program.
The Service may issue letter rulings or determination letters to groups or associations on their
own tax status or liability if the request meets the requirements of this revenue procedure.

January 3, 2023

20

Bulletin No. 2023–1

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

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

Ordinarily not to foreign
governments

.07 The Service ordinarily does not issue letter rulings or determination letters to foreign
governments or their political subdivisions about the U.S. tax effects of their laws. The Associate
offices also do not issue letter rulings on the effect of a tax treaty on the tax laws of a treaty country
for purposes of determining the tax of the treaty country. See section 13.02 of Rev. Proc. 201540, 2015-35 I.R.B. 236. Treaty partners can continue to address matters such as these under the
provisions of the applicable tax treaty. In addition, the Associate offices may issue letter rulings to
foreign governments or their political subdivisions on their own tax status or liability under U.S.
law if the request meets the requirements of this revenue procedure.

Ordinarily not on Federal
tax consequences of
proposed legislation

.08 The Associate offices ordinarily do not issue letter rulings on a matter involving the Federal
tax consequences of any proposed Federal, state, local, municipal, or foreign legislation. The
Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment
Taxes) may issue letter rulings regarding the effect of proposed state, local, or municipal legislation
upon an eligible deferred compensation plan under § 457(b) provided that the letter ruling request
relating to the plan complies with the other requirements of this revenue procedure. The Associate
offices also may provide general information in response to an inquiry.

Ordinarily not before
issuance of a regulation or
other published guidance

.09 Generally, the Service will not issue a letter ruling or a determination letter if the request
presents an issue that cannot be readily resolved before a regulation or any other published
guidance is issued. When the Service has closed a regulation project or any other published
guidance project that might have answered the issue or decided not to open a regulation project or
any other published guidance project, the Associate offices may consider all letter ruling requests
unless the issue is covered by section 6 of this revenue procedure, Rev. Proc. 2023-3 or Rev. Proc.
2023-7, this Bulletin.

Not on frivolous issues

.10 The Service will not issue a letter ruling or a determination letter on frivolous issues. A
“frivolous issue” is one without basis in fact or law or one that asserts a position that courts have held
frivolous or groundless. Examples of frivolous or groundless issues include, but are not limited to:
(1) frivolous “constitutional” claims, such as claims that the requirement to file tax returns and
pay taxes constitutes an unreasonable search barred by the Fourth Amendment, violates Fifth and
Fourteenth Amendment protections of due process, violates Thirteenth Amendment protections
against involuntary servitude, or is unenforceable because the Sixteenth Amendment does not
authorize nonapportioned direct taxes or was never ratified;
(2) claims that income taxes are voluntary, that the term “income” is not defined in the Internal
Revenue Code, or that preparation and filing of Federal income tax returns violates the Paperwork
Reduction Act;

Bulletin No. 2023–1

21

January 3, 2023

(3) claims that tax may be imposed only on coins minted under a gold or silver standard or that
receipt of Federal Reserve Notes does not cause an accretion to wealth;
(4) claims that a person’s income is not taxable because he or she falls within a class entitled
to “reparation claims” or an extra-statutory class of individuals exempt from tax, e.g., “free-born”
individuals;
(5) claims that a taxpayer can refuse to pay taxes on the basis of opposition to certain
Governmental expenditures;
(6) claims that taxes apply only to Federal employees; only to residents of Puerto Rico, Guam,
the U.S. Virgin Islands, the District of Columbia, or “Federal enclaves;” or that §§ 861 through
865 or any other provision of the Code imposes taxes on U.S. citizens and residents only on
income derived from foreign based activities;
(7) claims that wages or personal service income are “not income,” are “nontaxable receipts,”
or are a “nontaxable exchange for labor;”
(8) claims that income tax withholding by an employer on wages is optional; or
(9) other claims that the courts have characterized as frivolous or groundless.
Additional examples of frivolous or groundless issues may be found in IRS publications and
other guidance (including, but not limited to, Notice 2010-33, Frivolous Positions, and I.R.M.
Exhibit 25.25.10-1, Frivolous Arguments).
No “comfort” letter rulings

.11 Except with respect to a Covered Transaction within the meaning of Rev. Proc. 2017-52,
2017-41 I.R.B. 283 (amplified and modified by Rev. Proc. 2018-53, 2018-43 I.R.B. 667), a letter
ruling will not be issued with respect to an issue that is clearly and adequately addressed by a
statute, regulation, or court decision; or revenue rulings, revenue procedures, notices, or other
authorities published in the Internal Revenue Bulletin (Comfort Ruling). However, except with
respect to issues under § 332, § 351, § 368, or § 1036 and the tax consequences resulting from the
application of such Code sections (see generally section 6.03(2) of this revenue procedure), the
Associate office may, in its discretion, decide to issue a Comfort Ruling if an Associate office is
otherwise issuing a letter ruling to the taxpayer on another issue arising in the same transaction.

Not on alternative plans or
hypothetical situations

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

Not on property conversion
after return filed

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

Circumstances under which
determination letters are
not issued by a Director

January 3, 2023

.14 A Director will not issue a determination letter if—
(1) the taxpayer has directed a similar inquiry to an Associate office;

22

Bulletin No. 2023–1

(2) the same issue, involving the same taxpayer or a related party, is pending in a case in
litigation or before Appeals;
(3) the request involves an industry-wide problem;
(4) the specific employment tax question at issue in the request has been, or is being, considered
by the Central Office of the Social Security Administration or the Railroad Retirement Board for
the same taxpayer or a related party; or
(5) the request is for a determination of constructive sales price under § 4216(b) or § 4218(c),
which deal with special provisions applicable to the manufacturers excise tax. The Associate
Chief Counsel (Passthroughs and Special Industries) will, in certain circumstances, issue letter
rulings in this area. See section 5.13 of this revenue procedure.
SECTION 7. WHAT
ARE THE GENERAL
INSTRUCTIONS
FOR REQUESTING
LETTER RULINGS
AND DETERMINATION
LETTERS?

This section provides the general instructions for requesting letter rulings and determination
letters. See section 9 of this revenue procedure for the specific and additional procedures for
requesting a change in method of accounting.
Requests for letter rulings, closing agreements, and determination letters require the payment of
the applicable user fee listed in Appendix A of this revenue procedure. Certain changes in method
of accounting under the automatic change request procedures (see section 9.01(1) of this revenue
procedure) and certain changes in accounting periods made under automatic change request
procedures do not require payment of a user fee (see Appendix F of this revenue procedure). For
additional user fee requirements, see section 15 of this revenue procedure.
Specific and additional instructions also apply to requests for letter rulings and determination
letters on certain matters. Those matters are listed in Appendix F of this revenue procedure with a
reference (usually to another revenue procedure) where more information can be obtained.

Documents and information
required in all requests
Facts

.01
(1) Complete statement of facts and other information. Each request for a letter ruling or
a determination letter must contain a complete statement of all facts relating to the transaction.
These facts include—
(a) names, taxpayer identification numbers, addresses, telephone numbers, and other contact
information as appropriate (such as fax numbers or email addresses of any party requesting to
communicate with the Service in such a form, see section 7.02(5) of this revenue procedure) of
all interested parties (the term “all interested parties” does not include all shareholders of a widely
held corporation requesting a letter ruling relating to a reorganization or all employees where a
large number may be involved);
(b) the annual accounting period, and the overall method of accounting (cash or accrual) for
maintaining the accounting books and filing the Federal income tax return, of all interested parties;
(c) a description of the taxpayer’s business operations;
(d) a complete statement of the business reasons for the transaction;

Bulletin No. 2023–1

23

January 3, 2023

(e) a detailed description of the transaction; and
(f) all other facts relating to the transaction or to the taxpayer’s requested tax treatment thereof.
Documents and foreign
laws

(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents
pertinent to the transaction, and foreign laws.
(a) Documents. True copies of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, and other documents pertinent to the transactions must be
submitted with the request. But see sections 3.02 and 4 of Rev. Proc. 2017-52, 2017-41 I.R.B. 283
(amplified and modified by Rev. Proc. 2018-53, 2018-43 I.R.B. 667), for requirements relating
to ruling requests under § 355, and section 3.04 of Rev. Proc. 2018-53, 2018-43 I.R.B. 667, for
requirements relating to ruling requests involving assumption or satisfaction of the distributing
corporation’s debt in connection with § 355 distributions.
If the request concerns a corporate distribution, reorganization, or similar transaction, the
corporate balance sheet and profit and loss statement should also be submitted. But see sections
3.02 and 4 of Rev. Proc. 2017-52 for requirements relating to ruling requests under § 355. If
the request relates to a prospective transaction, the most recent balance sheet and profit and loss
statement should be submitted. But see sections 3.02 and 4 of Rev. Proc. 2017-52 (amplified and
modified by Rev. Proc. 2018-53) for requirements relating to ruling requests under § 355.
If any document, including any balance sheet and profit and loss statement, is in a language
other than English, the taxpayer must also submit a certified English translation of the document,
along with a true copy of the document. For guidelines on the acceptability of such documents,
see paragraph (c) of this section 7.01(2).
Each document other than the request should be labeled and attached to the request in alphabetical
sequence. Original documents such as contracts, wills, etc., should not be submitted because
they become part of the Service’s file and will not be returned.
(b) Foreign laws. The taxpayer must submit with the request a copy of the relevant parts of
all foreign laws, including statutes, regulations, administrative pronouncements, and any other
relevant legal authority. The documents submitted must be in the official language of the country
involved and must be copied from an official publication of the foreign government or another
widely available and generally accepted publication. If English is not the official language of the
country involved, the taxpayer must also submit a copy of an English language version of the
relevant parts of all foreign laws. This translation must be: (i) from an official publication of the
foreign government or another widely available, generally accepted publication; or (ii) a certified
English translation submitted in accordance with paragraph (c) of this section 7.01(2).
The taxpayer must identify the title and date of publication, including updates, of any widely
available and generally accepted publication that the taxpayer (or the taxpayer’s qualified
translator) uses as a source for the relevant parts of the foreign law.
(c) Standards for acceptability of submissions of documents in a language other than
English and certified English translations of documents and laws in a language other than
English. The taxpayer must submit with the request an accurate and complete certified English
translation of the relevant parts of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, and other documents pertinent to the transaction that are in a
language other than English. If the taxpayer chooses to submit certified English translations of

January 3, 2023

24

Bulletin No. 2023–1

foreign laws, those translations must be based on an official publication of the foreign government
or another widely available and generally accepted publication. In either case, the translation
must be that of a qualified translator and must be attested to by the translator. The attestation
must contain: (i) a statement that the translation submitted is a true and accurate translation of
the foreign language document or law; (ii) a statement as to the attestant’s qualifications as a
translator and as to that attestant’s qualifications and knowledge regarding tax matters or foreign
law if the law is not a tax law; and (iii) the attestant’s name and address.
Analysis of material facts

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

Same issue in any return
and whether return is
under examination, before
Appeals, before a Federal
court, or being considered
by the Pension Benefit
Guaranty Corporation, by
the Department of Labor,
or by the Department of
Health and Human Services

(4) Statement regarding whether same issue is presented in any return and additional
information required for § 301.9100 requests. The request must state whether, to the best of
the knowledge of both the taxpayer and the taxpayer’s representatives, the same issue is presented
in any return of the taxpayer, a related party within the meaning of § 267(b) or § 707(b)(1), or
a member of an affiliated group of which the taxpayer is also a member within the meaning of
§ 1504, or of any predecessor.
The request must also state whether, to the best of the knowledge of both the taxpayer and the
taxpayer’s representatives, any return on which the same issue is presented(a) is currently under examination, before Appeals, or before a Federal court;
(b) was previously under examination, before Appeals, or before a Federal court;
(c) in qualified retirement plan matters, is being considered by the Pension Benefit Guaranty
Corporation or the Department of Labor; or
(d) in health care matters, is being considered by the Department of Labor or the Department
of Health and Human Services.
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 identical
issue is under examination or consideration or in litigation. See section 6.01 of this revenue
procedure.
A limited exception to the above rule is made for a § 301.9100 request. See section 5.03 of this
revenue procedure. If a § 301.9100 request involves a tax year that is currently under examination,
before Appeals, or before a Federal court, the taxpayer must notify the Service, as outlined above.
This notification must include the name and telephone number of the examining agent or Appeals
officer.

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

Bulletin No. 2023–1

(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 the best of the knowledge of both the taxpayer and the taxpayer’s representatives—

25

January 3, 2023

(a) the Service previously ruled on the same or a similar issue for the taxpayer, a related party
within the meaning of §  267 or §  707(b)(1), or a member of an affiliated group of which the
taxpayer is also a member within the meaning of § 1504, or for a predecessor;
(b) the taxpayer, a related party, a predecessor, or any of their representatives previously
submitted a request (including an application for change in method of accounting) involving the
same or a similar issue but no letter ruling or determination letter was issued;
(c) the taxpayer, a related party, or a predecessor previously submitted a request (including
an application for change in method of accounting) involving the same or a similar issue that is
currently pending with the Service;
(d) at the same time as this request, the taxpayer or a related party is presently submitting
another request (including an application for change in method of accounting) involving the same
or a similar issue; or
(e) the taxpayer or a related party had, or has scheduled, a pre-submission conference involving
the same or a similar issue.
If the statement is affirmative for (a), (b), (c), (d), or (e) of this section 7.01(5), the statement
must give the date the request was submitted, the date the request was withdrawn or ruled on, if
applicable, and other details of the Service’s consideration of the issue.
Interpretation of a
substantive provision of an
income or estate tax treaty

(6) Statement regarding interpretation of a substantive provision of an income or estate
tax treaty. If the request involves the interpretation of a substantive provision of an income or
estate tax treaty, the request must state whether—
(a) the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue
for the taxpayer, a related party within the meaning of § 267 or § 707(b)(1), or a member of an
affiliated group of which the taxpayer is also a member within the meaning of § 1504, or for any
predecessor;
(b) the same or similar issue for the taxpayer, a related party, or any predecessor is being
examined or has been settled by the tax authority of the treaty jurisdiction or is otherwise the
subject of a closing agreement in that jurisdiction; and
(c) the same or similar issue for the taxpayer, a related party, or any predecessor is being
considered 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.
If the request involves a transaction between a taxpayer and a related party and either the taxpayer
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 —
(a) Preferential Regime, defined as one that meets the following three requirements: (1) the
regime relates to business taxation of income from geographically mobile activities (such as,
financial and other service activities, including the provision of intangibles); (2) the regime offers
a form of tax preference, such as, a reduction in the rate of tax or tax base compared to general
principles of U.S. taxation; and (3) the regime imposes no or low effective tax rates on income
from geographically mobile, financial, and other service activities;

January 3, 2023

26

Bulletin No. 2023–1

(b) Transfer Pricing, meaning the letter ruling covers transfer pricing or the application of
transfer pricing principles under § 482 and the regulations thereunder;
(c) Downward Adjustment, meaning the letter ruling provides for a downward adjustment
to the taxpayer’s taxable profit that is not directly reflected in its financial accounts. Examples
include excess profits rulings or informal capital rulings that provide an adjustment that reduces
taxable profits;
(d) Treaty Permanent Establishment, meaning the letter ruling determines the existence or
absence of a permanent establishment under an income tax treaty or provides how much profit
will be attributed to a permanent establishment;
(e) Related Party Conduit, meaning the letter ruling covers the cross-border flow of funds
or income through a U.S. entity that is a conduit under common law principles or Treas. Reg.
§ 1.881-3, whether those funds or income flow to another country directly or indirectly.
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
government status or status as a political subdivision of an Indian tribal government, the taxpayer
must submit with the letter ruling request a letter from the Department of the Interior, Bureau of
Indian Affairs (BIA), verifying that the tribe is recognized by BIA as an Indian tribe and that the
tribal government exercises governmental functions or that the political subdivision of the Indian
tribal government has been delegated substantial governmental functions. A letter ruling request
that does not contain this letter from BIA cannot be resolved until the Service obtains a letter from
BIA regarding the tribe’s status.
The taxpayer should send a request to verify tribal status to the following address:
Branch of General Indian Legal Activity
Division of Indian Affairs
Office of the Solicitor
U.S. Department of the Interior
1849 C Street, NW
Washington, DC 20240

Statement of authorities
supporting taxpayer’s views

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

Statement of authorities
contrary to taxpayer’s
views

Bulletin No. 2023–1

(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
there are significant contrary authorities, it is usually helpful to discuss them in a pre-submission
conference prior to submitting the ruling request. See section 10.07 of this revenue procedure
regarding pre-submission conferences. The taxpayer is strongly encouraged to inform the Service
about, and discuss the implications of, any authority believed to be contrary to the position

27

January 3, 2023

advanced, such as statutes, tax treaties, court decisions, regulations, notices, revenue rulings,
revenue procedures, or announcements. If the taxpayer determines that there are no contrary
authorities, a statement in the request to this effect should be included. If the taxpayer does not
furnish either contrary authorities or a statement that none exist, the Service in complex cases
or those presenting difficult or novel issues may request submission of contrary authorities or a
statement that none exist. Failure to comply with this request may result in the Service’s refusal to
issue a letter ruling or determination letter.
The taxpayer’s identification of and discussion of contrary authorities will generally enable
Service personnel to more quickly understand the issue and relevant authorities. Having this
information should make research more efficient and lead to earlier action by the Service. If the
taxpayer does not disclose and distinguish significant contrary authorities, the Service may need
to request additional information, which will delay action on the request.
Statement identifying
pending legislation

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

Deletion statement required
by § 6110

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

January 3, 2023

28

Bulletin No. 2023–1

(v) The portion of any document issued by the Internal Revenue Service with respect to the
qualification or exempt status of a retirement plan or account of a proposed transaction by such
plan or account.
(a) Format of deletion statement. A taxpayer who wants only names, addresses, and
identifying numbers to be deleted should state this in the deletion statement. If the taxpayer wants
more information deleted, the deletion statement must be accompanied by a copy of the request
and supporting documents on which the taxpayer should bracket the material to be deleted. The
deletion statement must include the statutory basis under § 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or determination
letter is issued, the taxpayer may submit additional deletion statements.
(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. The deletion statement must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. See section 7.01(13) of this revenue procedure for signature
requirements.
(d) Additional information. The taxpayer should follow the same procedures of this section
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
if the taxpayer’s initial deletion statement requests that only names, addresses, and identifying
numbers are to be deleted and the taxpayer wants only the same information deleted from the
additional information.
(e) Taxpayer may protest deletions not made. After receiving from the Service the notice
under § 6110(f)(1) of intention to disclose the letter ruling or determination letter (including a copy
of the version proposed to be open to public inspection and notation of third-party communications
under § 6110(d)), the taxpayer may protest the disclosure of certain information in the letter ruling
or determination letter. The taxpayer must send a written statement to the Service office indicated
on the notice of intention to disclose, within 20 calendar days of the date the notice of intention to
disclose is mailed to the taxpayer. The statement must identify those deletions that the Service has
not made and that the taxpayer believes should have been made. The taxpayer must also submit a
copy of the version of the letter ruling or determination letter and bracket the proposed deletions
that have not been made by the Service. Generally, the Service will not consider deleting any
material that the taxpayer did not propose to be deleted before the letter ruling or determination
letter was issued.
Within 20 calendar days after the Service receives the response to the notice under § 6110(f)
(1), the Service will mail to the taxpayer its final administrative conclusion regarding the deletions
to be made. The taxpayer does not have the right to a conference to resolve any disagreements
concerning material to be deleted from the text of the letter ruling or determination letter. These
matters may, however, be taken up at any conference that is otherwise scheduled regarding the
request.
(f) Taxpayer may request delay of public inspection. After receiving the notice of intention
to disclose under § 6110(f)(1), but no later than 60 calendar days after the date of the notice, the
taxpayer may send a written request for delay of public inspection under either § 6110(g)(3) or
(4). The request for delay must be sent to the Service office indicated on the notice of intention

Bulletin No. 2023–1

29

January 3, 2023

to disclose. A request for delay under § 6110(g)(3) must contain the date on which it is expected
that the underlying transaction will be completed. The request for delay under § 6110(g)(4) must
contain a statement from which the Commissioner of Internal Revenue may determine whether
there are good reasons for the continued delay.
Signature on request

(13) Signature by taxpayer or authorized representative. The request for a letter ruling
or determination letter must be signed and dated by the taxpayer or the taxpayer’s authorized
representative.
(a) Paper submissions. The original of a request for a letter ruling or determination letter
submitted on paper should generally include a wet-ink signature. If it is not possible to physically
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
that uses encryption techniques to provide proof of original and unmodified documentation. The
Service will accept electronic signatures in one of the following formats: tiff, jpg, jpeg, pdf,
Microsoft Office suite, or Zip.
See section 7.04 of this revenue procedure for submission procedures.

Authorized representatives

(14) Authorized representatives.
(a) To sign the request or to appear before the Service in connection with the request, the
taxpayer’s authorized representative must be one of the following (for rules on who may practice
before the Service, see Treasury Department Circular No. 230, 31 C.F.R. part 10):
(i) An attorney who is a member in good standing of the bar of the highest court of any state,
possession, territory, commonwealth, or the District of Columbia and who is not currently
under suspension or disbarment from practice before the Service. He or she must file a written
declaration with the Service showing current qualification as an attorney and current authorization
to represent the taxpayer;
(ii) A certified public accountant who is duly qualified to practice in any state, possession,
territory, commonwealth, or the District of Columbia and who is not currently under suspension
or disbarment from practice before the Service. He or she must file a written declaration with the
Service showing current qualification as a certified public accountant and current authorization to
represent the taxpayer;
(iii) An enrolled agent (a person who is currently enrolled as an agent to practice before the
Service) who is not currently under suspension or disbarment from practice before the Service. He
or she must file a written declaration with the Service showing current enrollment and authorization
to represent the taxpayer. The enrollment number must be included in the declaration;
(iv) An enrolled actuary (an individual currently enrolled as an actuary by the Joint Board for
the Enrollment of Actuaries pursuant to 29 U.S.C. § 1242) who is not currently under suspension
or disbarment from practice before the Service. He or she must file a written declaration with the
Service showing current qualification as an enrolled actuary and current authorization to represent
the taxpayer. Practice before the Service as an enrolled actuary is limited to representation with

January 3, 2023

30

Bulletin No. 2023–1

respect to issues involving §§ 401, 403(a), 404, 405, 412, 413, 414, 419, 419A, 420, 4971, 4972,
4976, 4980, 6057, 6058, 6059, 6652(d), 6652(e), 6692, and 7805(b); former § 405; and 29 U.S.C.
§ 1083;
(v) An enrolled retirement plan agent (an individual currently enrolled as a retirement plan
agent) who is not currently under suspension or disbarment from practice before the Service. He
or she must file a written declaration as an enrolled retirement plan agent and current authorization
to represent the taxpayer. Practice before the Service as an enrolled retirement plan agent is
limited to representation with respect to issues involving the following programs: Employee Plans
Determination Letter program; Employee Plans Compliance Resolution System; and Employee
Plans Pre-approved program. Enrolled retirement plan agents also are generally permitted to
represent taxpayers with respect to IRS forms under the 5300 and 5500 series, which are filed
by retirement plans and plans sponsors, but not with respect to actuarial forms and schedules; or
(vi) Any other person, including a foreign representative, who has received a “Letter of
Authorization” from the Director of the Office of Professional Responsibility under section
10.7(d) of Treasury Department Circular No. 230. A person may make a written request for a
“Letter of Authorization” to: Office of Professional Responsibility, SE:OPR, Internal Revenue
Service, 1111 Constitution Ave., NW, Washington, DC 20224. Section 10.7(d) of Circular No.
230 authorizes the Commissioner to allow an individual who is not otherwise eligible to practice
before the Service to represent another person in a particular matter.
(b) A regular full-time employee representing his or her employer; a general partner representing
his or her partnership; a bona fide officer representing his or her corporation, association, or
organized group; a trustee, receiver, guardian, personal representative, administrator, executor,
or regular full-time employee representing a trust, receivership, guardianship, or estate; or an
individual representing an immediate family member may sign the request or appear before the
Service in connection with the request if the individual provides current authorization to represent
the taxpayer. See section 7.01(15) of this revenue procedure.
A taxpayer may be required to file a Form 8821, Tax Information Authorization, for certain
employees not authorized to represent the taxpayer to receive taxpayer information from the
Service.
(c) Tax return preparers that are not described in subsections (a) and (b) of this section may not
sign the request, appear before the Service, or represent a taxpayer in connection with a request
for a letter ruling or a determination letter. See section 10.3(f)(3) of Treasury Department Circular
No. 230.
(d) A foreign representative, other than a person referred to in subsections (a) and (b) of
this section, is not authorized to practice before the Service within the United States and must
withdraw from representing a taxpayer in a request for a letter ruling or a determination letter. In
this situation, the nonresident alien or foreign entity must submit the request for a letter ruling or
a determination letter on the individual’s or the entity’s own behalf or through a person referred
to in subsections (a) and (b) of this section.
Power of Attorney
and Declaration of
Representative

Bulletin No. 2023–1

(15) Power of Attorney and Declaration of Representative. Form 2848, Power of Attorney
and Declaration of Representative, should be used to provide the representative’s authority (Part
I of Form 2848, Power of Attorney) and the representative’s qualification (Part II of Form 2848,
Declaration of Representative). The name of the person signing Part I of Form 2848 should be
typed or printed on this form. A Form 2848 executed for the purpose of a request for a letter
ruling or determination letter should reflect that it is for a “specific use” that is not recorded on the

31

January 3, 2023

Centralized Authorization File (CAF) and should only be submitted in conjunction with such a
request as provided in this revenue procedure (that is, it should not be submitted to the Service by
any other method listed in the Instructions for Form 2848).
A Form 2848 must be signed by both the taxpayer (or the person signing on the taxpayer’s
behalf) and the representative in a manner consistent with section 7.01(13) of this revenue
procedure. If the Form 2848 is remotely signed by the taxpayer (or the person signing on the
taxpayer’s behalf) using a permissible electronic or digital method, the representative should
follow the necessary steps to verify the taxpayer’s identity provided in the Electronic Signatures
section of the Instructions for Form 2848, but are not required to provide a separate attestation
unless requested by the Service. If the Form 2848 is signed by the taxpayer (or the person signing
on the taxpayer’s behalf) using a physical, wet-ink signature, a submission may include a copy or
scanned version of the Form 2848 as long as its authenticity is not reasonably disputed.
For additional information regarding the power of attorney form, see section 7.02(2) of this
revenue procedure.
The taxpayer’s authorized representative, whether or not enrolled, must comply with Treasury
Department Circular No. 230, which provides the rules for practice before the Service. In situations
where the Service believes that the taxpayer’s representative is not in compliance with Circular
230, the Service will bring the matter to the attention of the Office of Professional Responsibility.
Penalties of perjury
statement

(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
following declaration: “Under penalties of perjury, I declare that I have examined [Insert,
as appropriate: this request or this modification to the request], including accompanying
documents, and, to the best of my knowledge and belief, [Insert, as appropriate: the request
or the modification] contains all the relevant facts relating to the request, and such facts are
true, correct, and complete.”
See section 8.05(4) of this revenue procedure for the penalties of perjury statement applicable
for submissions of additional information.
(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer, not the
taxpayer’s representative, in a manner consistent with section 7.01(13) of this revenue procedure.
The person who signs for a corporate taxpayer must be an officer of the corporate taxpayer who
has personal knowledge of the facts and whose duties are not limited to obtaining a letter ruling or
determination letter from the Service. If the corporate taxpayer is a member of an affiliated group
filing consolidated returns, a penalties of perjury statement must also be signed and submitted by
an officer of the common parent of the group.
The person signing for a trust, a state law partnership, or a limited liability company must be,
respectively, a trustee, general partner, or member-manager who has personal knowledge of the
facts.

January 3, 2023

32

Bulletin No. 2023–1

Sample format for a letter
ruling request

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

Checklist

(18) Checklist for letter ruling requests. An Associate office will be able to respond more
quickly to a taxpayer’s letter ruling request if the request is carefully prepared and complete. The
checklist in Appendix C of this revenue procedure is designed to assist taxpayers in preparing a
request by reminding them of the essential information and documents to be furnished with the
request. The checklist in Appendix C must be completed to the extent required by the instructions
in the checklist, signed and dated by the taxpayer or the taxpayer’s representative, and placed on top
of the letter ruling request. If the checklist in Appendix C is not received, a branch representative
will ask the taxpayer or the taxpayer’s representative to submit the checklist; this may delay action
on the letter ruling request.
For letter ruling requests on certain matters, specific checklists supplement the checklist
in Appendix C. These checklists are in Appendix D, Appendix E, or are listed in section 1 of
Appendix F of this revenue procedure and must also be completed and placed on top of the letter
ruling request along with the checklist in Appendix C.
Taxpayers can obtain copies of the checklists by accessing this revenue procedure in Internal
Revenue Bulletin 2023-1, available at www.irs.gov/irb. A copy of this checklist may be used.

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
one issue is presented in a request for a letter ruling, the Associate office generally will issue a
single letter ruling covering all the issues. If the taxpayer requests separate letter rulings on any of
the issues (because, for example, one letter ruling is needed sooner than another), the Associate
office usually will comply with the request unless doing so is not feasible or not in the best interest
of the Service. A taxpayer who wants separate letter rulings on multiple issues should make this
clear in the request and 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.
In issuing each letter ruling, the Associate office will state that it has issued separate letter
rulings or that requests for other letter rulings are pending.

Power of attorney used to
indicate recipient of a copy
or copies of a letter ruling
or a determination letter

(2) Power of attorney used to indicate recipient or recipients of a copy or copies of a letter
ruling or a determination letter. Once the Service signs the letter ruling or determination letter,
the Service has the discretion to determine the form in which it will provide the letter ruling or
determination letter to the taxpayer, but will generally comply with a taxpayer’s request for a
particular form. See section 7.02(5) of this revenue procedure. If providing the ruling on paper, the
Service will send the original to the taxpayer, not the taxpayer’s representative.
At the taxpayer’s request, the Service will send one copy of the letter ruling or determination
letter to up to two authorized representatives. At the discretion of the Service, the Service may
provide a copy of the letter ruling or determination letter to up to two authorized representatives,
even though the taxpayer did not request that the Service send a copy of notices and communications
to the taxpayer’s representatives. Taxpayers that use Form 2848, Power of Attorney and
Declaration of Representative, to designate representatives, may request that copies of notices
and communications be sent to the representatives listed at Line 2 by checking the corresponding

Bulletin No. 2023–1

33

January 3, 2023

box on Line 2. Taxpayers may use Line 5 of Form 2848 to advise the Service that a copy of the
letter ruling or determination letter should not be sent to the taxpayer’s representative(s). If no
box is checked on Line 2 and the taxpayer does not indicate otherwise on Line 5, the Service may
in its discretion provide a copy of the letter ruling or determination letter to up to two authorized
representatives.
“Two-part” letter ruling
requests

(3) To request a particular conclusion on a proposed transaction. A taxpayer who requests
a particular conclusion on a proposed transaction may make the request for a letter ruling in two
parts. This type of request is referred to as a “two-part” letter ruling request. The first part must
include the complete statement of facts and related documents described in section 7.01 of this
revenue procedure. The second part must include a summary statement of the facts the taxpayer
believes to be controlling in reaching the conclusion requested.
If the Associate office accepts the taxpayer’s statement of controlling facts, it will base its letter
ruling on these facts. Ordinarily, this statement will be incorporated into the letter ruling. The
Associate office reserves the right to rule on the basis of a more complete statement of the facts
and to seek more information in developing the facts and restating them.
A taxpayer who chooses this two-part procedure has all the rights and responsibilities provided
in this revenue procedure.
Taxpayers may not use the two-part procedure if it is inconsistent with other procedures, such as
those dealing with requests for permission to change accounting methods or periods, applications
for recognition of exempt status under § 501(a) or § 521, or requests for rulings on employment
tax status.
After the Associate office has resolved the issues presented by a letter ruling request, the
Associate office representative may request that the taxpayer submit a proposed draft of the letter
ruling to expedite the issuance of the ruling. See section 8.07 of this revenue procedure.

Expedited handling

(4) To request expedited handling. The Service ordinarily processes requests for letter rulings
and determination letters in order of the date received. Expedited handling means that a request
is processed ahead of requests received before it. Expedited handling is granted only in rare and
unusual cases, both out of fairness to other taxpayers and because the Service seeks to process
all requests as expeditiously as possible and to give appropriate deference to normal business
exigencies in all cases not involving expedited handling.
A taxpayer with a compelling need to have a request processed ahead of requests received
before it may request expedited handling. This request must explain in detail the need for expedited
handling. The request for expedited handling must be made in writing, preferably in a separate
letter included with the request for the letter ruling or determination letter or provided soon after
its filing. If the request for expedited handling is contained in the letter requesting the letter ruling
or determination letter, the letter should state at the top of the first page “Expedited Handling Is
Requested. See page ___ of this letter.”
A request for expedited handling will not be forwarded to a branch for action until the user fee
has been paid.
Whether a request for expedited handling will be granted is within the Service’s discretion. The
Service may grant the request when a factor outside a taxpayer’s control creates a real business
need to obtain a letter ruling or determination letter before a certain date to avoid serious business

January 3, 2023

34

Bulletin No. 2023–1

consequences. Examples include situations in which a court or governmental agency has imposed
a specific deadline for the completion of a transaction, or where a transaction must be completed
expeditiously to avoid an imminent business emergency (such as the hostile takeover of a corporate
taxpayer), provided that the taxpayer can demonstrate that the deadline or business emergency, and
the need for expedited handling, resulted from circumstances that could not reasonably have been
anticipated or controlled by the taxpayer. To qualify for expedited handling in such situations, the
taxpayer must also demonstrate that the taxpayer submitted the request as promptly as possible after
becoming aware of the deadline or emergency. The extent to which the letter ruling or determination
letter request complies with all of the applicable requirements of this revenue procedure, and fully
and clearly presents the issues, is a factor in determining whether expedited treatment will be granted.
When the Service agrees to process a request out of order, it cannot give assurance that any letter
ruling or determination letter will be processed by the date requested.
The scheduling of a closing date for a transaction or a meeting of the board of directors or
shareholders of a corporation, without regard for the time it may take to obtain a letter ruling or
determination letter, will not be considered a sufficient reason to process a request ahead of its
regular order. Also, the possible effect of fluctuation in the market price of stocks on a transaction
will not be considered a sufficient reason to process a request out of order.
Because most requests for letter rulings and determination letters cannot be processed out of
order, the Service urges all taxpayers to submit their requests well in advance of the contemplated
transaction. In addition, to facilitate prompt action on letter ruling requests, taxpayers are encouraged
to ensure that their initial submissions comply with all of the requirements of this revenue procedure
(including the requirements of other applicable guidelines set forth in Appendix F of this revenue
procedure), to prepare “two-part” requests described in section 7.02(3) of this revenue procedure
when possible, and to promptly provide any additional information requested by the Service.
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. If the taxpayer so requests, the Associate
office may provide by fax, electronic facsimile, or encrypted email attachment to the taxpayer or
the taxpayer’s authorized representative a copy of any document related to the letter ruling request
(for example, the letter ruling itself or a request for additional information). The Service has the
discretion to determine the form in which it will correspond with the taxpayer, but will generally
comply with a taxpayer’s request for a particular form.
The taxpayer must make such a request in writing, preferably as part of the original request
for the letter ruling. The request may be submitted at a later date, but such a request will only
be respected prospectively with respect to documents generated after it is received, and must be
received prior to the signing of the letter ruling.
If the taxpayer requests documents by fax or electronic facsimile, the request must contain the
fax number of the taxpayer or the taxpayer’s authorized representative to whom the document is
to be provided. A document other than the letter ruling will be faxed by a branch representative.
A copy of the letter ruling may be faxed by either a branch representative or the Disclosure and
Litigation Support Branch of the Legal Processing Division of the Office of Associate Chief
Counsel (Procedure and Administration) (CC:PA:LPD:DS). For purposes of § 301.6110-2(h),
however, a letter ruling is not issued until the ruling is mailed.
If the taxpayer requests documents by encrypted email attachment, the request must specify
which email encryption method is to be used and, if the taxpayer has not already provided the
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.

Bulletin No. 2023–1

35

January 3, 2023

Requesting a conference

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

Letter ruling requests
involving welfare benefit
funds (including voluntary
employees’ beneficiary
associations (VEBAs))

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

Submitting request
for letter ruling or
determination letter

.04 Requests for letter rulings under the jurisdiction of an Associate Office may be submitted
by 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 email attachment.
Requests for determination letters under the jurisdiction of SB/SE regarding income taxes
(including requests from international taxpayers) may be submitted only by electronic facsimile.
Requests for determination letters under the jurisdiction of SB/SE regarding estate and gift taxes,
employment taxes, and excise taxes may be submitted only on paper.
Requests for determination letters under the jurisdiction of W&I may be submitted only on
paper.
For requests for determination letters under the jurisdiction of TE/GE, see Rev. Proc. 2023-4
and Rev. Proc. 2023-5, this Bulletin.

Submission by mail

(1) A taxpayer submitting a request on paper generally needs to submit the original and one
copy of the request.
However, if the taxpayer identifies multiple Associate offices in the request with jurisdiction
over issues presented by the request, the taxpayer must submit an additional copy of the request
for each additional Associate office. If the request is under the jurisdiction of a single Associate
office but presents multiple issues likely to require review by multiple branches of that office, the
taxpayer is encouraged, but not required to submit additional copies of the request.
Further, the taxpayer must submit the original and two copies of the request if the taxpayer
is requesting separate letter rulings or determination letters on multiple issues as explained in
section 7.02(1) of this revenue procedure; the taxpayer is requesting deletions other than names,
addresses, and identifying numbers, as explained in section 7.01(12)(a) of this revenue procedure
(one copy is the request for the letter ruling or determination letter and the second copy is the
deleted version of such request); or the taxpayer is requesting a closing agreement (as defined in
section 2.02 of this revenue procedure) on the issue presented.
To use the paper method, first submit the full user fee payment set forth in Appendix A of this
revenue procedure through www.pay.gov, and include a copy of the receipt for this payment with
the request. See section 15.08 of this revenue procedure.
(a) Addresses for request for letter ruling. Envelopes or packages containing letter ruling
requests should be marked RULING REQUEST SUBMISSION.

January 3, 2023

36

Bulletin No. 2023–1

If a private delivery service is not used, requests for letter rulings should be sent to the following
address:
I nternal Revenue Service
Attn: CC:PA:LPD:TSS
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044
If a private delivery service is used, the address is:
I nternal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
Requests for letter rulings may also be hand delivered between the hours of 8:00 a.m. and 4:00
p.m. to the courier’s desk at 1111 Constitution Avenue, NW, Washington, DC. A receipt will be
given at the courier’s desk. The package should be addressed to:
Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
(b) SB/SE taxpayers (with regards to estate and gift taxes, employment taxes, and excise taxes)
and W&I taxpayers should send requests for determination letters to the following address:
Director SB/SE Exam, Specialty Policy
Internal Revenue Service
SE:S:E:HQ:SEP
c/o Specialty Exam Policy, Tech Advisor
5000 Ellin Rd, Mail Stop C3-255
Office C2-156
Lanham, MD 20784
Submission by electronic
facsimile

(2) Taxpayers and their representatives are encouraged to use a secure electronic facsimile
service for transmitting requests for advice. To use the secure electronic facsimile method, first
submit the full user fee payment set forth in Appendix A of this revenue procedure through www.
pay.gov, and include a copy of the receipt for this payment with the request. See section 15.08 of
this revenue procedure.
When compiling the request package, provide clear titles for the documents and distinguish
files containing administrative forms and receipts from files that contain the request itself and
from supplemental materials. If the submission is over 10 MB or over 50 pages, break it into
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”).

Bulletin No. 2023–1

37

January 3, 2023

Transmit the full package, along with a cover sheet, to the secure electronic facsimile lines
below.
For requests under the jurisdiction of an Associate office:
(877) 773-4950
For determination letter requests under the jurisdiction of LB&I:
(844) 249-6231
For determination letter requests under the jurisdiction of SB/SE (with regards to income taxes
(including requests from international taxpayers)):
(877) 477-9193
Submission by encrypted
email attachment

(3) There are more risks associated with email than with electronic facsimile, such as the
possibility that sensitive taxpayer information could be intercepted. Accordingly, the Service
encourages taxpayers to use a secure electronic facsimile service for transmitting requests for
advice. As an alternative, this section provides procedures for using encrypted email attachments
for transmitting a request for advice under the jurisdiction of an Associate office or LB&I.
Taxpayers using encrypted email attachments may choose to use a compression utility compatible
with SecureZIP (note that many open-source utilities are not compatible with SecureZIP), Adobe
Acrobat Pro password encryption, or Microsoft Office 2016/365 Protect Document to encrypt and
send password-protected files. Because these programs do not encrypt the subject line or body of
an email or the file name of the attachment, all sensitive taxpayer information, including the name
of the taxpayer, should be included only in the encrypted attachment.
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.
Instead, it should be provided to the Service in a separate email with a subject line that makes it
easy to connect the password to the encrypted email.
To use encrypted email attachments, first submit the full user fee payment set forth in Appendix
A of this revenue procedure through www.pay.gov, and include a copy of the receipt for this
payment with the request. See section 15.08 of this revenue procedure.
A request transmitted through email must be accompanied by two MOUs: the MOU in Appendix
G of this revenue procedure, acknowledging the risks of using email to transmit sensitive taxpayer
information, and the appropriate MOU in Appendix H, agreeing to the terms for using the chosen
method of encryption to receive sensitive taxpayer information. These MOUs must be signed by
the taxpayer, not the taxpayer’s representative, in a manner consistent with section 7.01(13) of 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.
When compiling the request package, provide clear titles for the documents and distinguish
files containing administrative forms and receipts from files that contain the request itself and
from supplemental materials. Encrypt the files or enable the encryption utility on the email system

January 3, 2023

38

Bulletin No. 2023–1

before generating the email. If the submission is over 5 MB or over 50 pages, break it into smaller
components that do not exceed 5 MB each, and number the components sequentially with the total
number (such as “1 of 4”, “2 of 4”, “3 of 4”, and “4 of 4”).
Transmit the full package to the email addresses below.
For requests under the jurisdiction of an Associate office:
[email protected]
For determination letter requests under the jurisdiction of LB&I:
[email protected]
Taxpayer representatives that have the technical ability to exchange email encrypted with
Secure/Multipurpose Internet Mail Extensions (S/MIME) certificates may also elect to use LB&I’s
Secure Email Message System (SEMS). Representatives seeking to use SEMS should contact the
LB&I Office of the Assistant Deputy Commissioner, Compliance Integration at the phone number
listed at the end of this document.
Pending letter ruling
requests
Circumstances under which
the taxpayer with a pending
letter ruling request must
notify the Associate office

.05
(1) Circumstances under which the taxpayer with a pending letter ruling request must
notify the Associate office. The taxpayer must notify the Associate office if, after the letter ruling
request is filed but before a letter ruling is issued, the taxpayer knows that—
(a) a field office has started an examination of the issue or the identical issue on an earlier year’s
return;
(b) in the case of a § 301.9100 request, a field office has started an examination of the return
for the taxable year in which an election should have been made or any taxable year that would
have been affected by the election had it been timely made. See § 301.9100-3(e)(4)(i) and section
5.03(3) of this revenue procedure;
(c) legislation that may affect the transaction has been introduced. See section 7.01(11) of this
revenue procedure;
(d) another letter ruling request (including an application for change in method of accounting),
involving the same or similar issue as that pending with the Service, has been submitted by the
taxpayer, a related party within the meaning of § 267 or § 707(b)(1), or a member of an affiliated
group of which the taxpayer is also a member within the meaning of § 1504;
(e) in qualified retirement plan matters, the issue is being considered by the Pension Benefit
Guaranty Corporation or the Department of Labor; or
(f) in health care matters, the issue is being considered by the Department of Labor or the
Department of Health and Human Services.

Bulletin No. 2023–1

39

January 3, 2023

Taxpayer must notify the
Associate office if a return
is filed and must attach the
request to the return

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

When to attach letter ruling
or determination letter to
return

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

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

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

Notification of appropriate
Service official

January 3, 2023

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

(1) In general. A taxpayer may withdraw a request for a letter ruling or determination letter at
any time before the letter ruling or determination letter is signed by the Service. Correspondence
and exhibits related to a request that is withdrawn or related to a letter ruling request for which an
Associate office declines to issue a letter ruling will not be returned to the taxpayer. See section
7.01(2)(a) of this revenue procedure. In appropriate cases, an Associate office may publish its
conclusions in a revenue ruling or revenue procedure.
(2) Notification of appropriate Service official.

40

Bulletin No. 2023–1

(a) Letter ruling requests. If a taxpayer withdraws a letter ruling request or if the Associate
office declines to issue a letter ruling, the Associate office generally will notify, by memorandum,
the appropriate Service official in the operating division that has examination jurisdiction of the
taxpayer’s tax return. For taxpayers under the jurisdiction of the Division Counsel (LB&I), the
Associate office will also send a copy of the memorandum to the Assistant Deputy Commissioner,
Compliance Integration. In doing so, the Associate office may give its views on the issues in the
request for consideration in any later examination of the return.
This section 7.08(2)(a) generally does not apply if the taxpayer withdraws the letter ruling
request and submits a written statement that the transaction has been, or is being, abandoned and
if the Associate office has not already formed an adverse opinion.
(b) Notification of Service official may constitute Chief Counsel Advice. If the memorandum
referred to in paragraph (a) of this section 7.08(2) provides more than the fact that the request was
withdrawn and that the Associate office was tentatively adverse, or more than the fact that the
Associate office declined to issue a letter ruling, the memorandum may constitute Chief Counsel
Advice, as defined in § 6110(i)(1), and may be subject to disclosure under § 6110.
SECTION 8. HOW
DO THE ASSOCIATE
OFFICES HANDLE
LETTER RULING
REQUESTS?

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

Technical Services Support
Branch receives, initially
controls, and refers the
request to the appropriate
Associate office

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

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

.02 Within 21 calendar days after a letter ruling request has been received in the branch of the
Associate office that has jurisdiction over the issue, a representative of the branch will contact
the taxpayer or, if the request includes a properly executed power of attorney, the authorized
representative, unless the power of attorney provides otherwise. During such contact, the branch
representative will discuss the procedural issues in the letter ruling request. If the case is complex
or a number of issues are involved, it may not be possible for the branch representative to discuss
the substantive issues during this initial contact. When possible, for each issue within the branch’s
jurisdiction, the branch representative will tell the taxpayer—
(1) whether the branch representative will recommend that the Associate office rule as the
taxpayer requested, rule adversely on the matter, or not rule;
(2) whether the taxpayer should submit additional information to enable the Associate office to
rule on the matter;
(3) whether the letter ruling complies with all of the provisions of this revenue procedure, and
if not, which requirements have not been met; or
(4) whether, because of the nature of the transaction or the issue presented, a tentative conclusion
on the issue cannot be reached.

Bulletin No. 2023–1

41

January 3, 2023

If the letter ruling request involves matters within the jurisdiction of more than one branch
or Associate office, a representative of the branch that received the original request will tell the
taxpayer within the initial 21 calendar days—
(1) that the matters within the jurisdiction of another branch or Associate office have been
referred to that branch or Associate office for consideration, and the date the referral was made,
and
(2) that a representative of that branch or Associate office will contact the taxpayer within 21
calendar days after receiving the referral to discuss informally the procedural and, to the extent
possible, the substantive issues in the request.
This section 8.02 applies to all matters except for cases within the jurisdiction of the Associate
Chief Counsel (Financial Institutions and Products) concerning insurance issues requiring
actuarial computations.
Determines if transaction
can be modified to obtain
favorable letter ruling

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

Not bound by informal
opinion expressed

May request additional
information
Must be submitted within
21 calendar days

.04 The Service will not be bound by the informal opinion expressed by the branch representative
or any other Service representative, and such an opinion cannot be relied upon as a basis for
obtaining retroactive relief under the provisions of § 7805(b).
.05
(1) Additional information must be submitted within 21 calendar days. If the request
lacks essential information, which may include additional information needed to satisfy the
procedural requirements of this revenue procedure as well as substantive changes to transactions
or documents needed from the taxpayer, the branch representative will request such information
during the initial or subsequent contacts with the taxpayer or its authorized representative. The
branch representative will inform the taxpayer or its authorized representative that the request will
be closed if the Associate office does not receive the requested information within 21 calendar
days from the date of the request unless an extension of time is granted. To facilitate prompt
action on letter ruling requests, taxpayers may request that the Associate office request additional
information by fax, electronic facsimile, or encrypted email attachment. See section 7.02(5) of this
revenue procedure.
Material facts furnished to the Associate office by telephone or orally at a conference must be
promptly confirmed in writing by mail, fax, or email to the Associate office. This confirmation,
and any additional information requested by the Associate office that is not part of the information
requested during the initial contact, must be furnished within 21 calendar days from the date the
Associate office makes the request.

January 3, 2023

42

Bulletin No. 2023–1

Extension of reply period if
justified and approved

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

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

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

Penalties of perjury
statement for additional
information

(4) Penalties of perjury statement. Additional information submitted to the Service must
be accompanied by the following declaration: “Under penalties of perjury, I declare that I
have examined this information, including accompanying documents, and, to the best of my
knowledge and belief, the information contains all the relevant facts relating to the request
for the information, and such facts are true, correct, and complete.” This declaration must
be signed in accordance with the requirements in section 7.01(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,
taxpayers may request that the Associate office request additional information by fax, electronic
facsimile, or encrypted email attachment. See section 7.02(5) of this revenue procedure.
Taxpayers may also submit additional information by fax, electronic facsimile, or encrypted
email attachment as soon as the information is available. The Associate office representative who
requests additional information can provide a fax or electronic facsimile number or email address
to which the information can be sent.

Submitting additional
information by mail

(6) Submitting additional information by mail.
(a) If a private delivery service is not used, the additional information should be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and room number
of the Associate office representative who
requested the information]
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044
For cases involving a request for change in method of accounting or period, see section 9.08 of
this revenue procedure for the address to which to send additional information.

Bulletin No. 2023–1

43

January 3, 2023

(b) If a private delivery service is used, the additional information for all cases should be sent
to:
I nternal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and room number
of the Associate office representative who
requested the information]
1111 Constitution Ave., NW
Washington, DC 20224
(c) A taxpayer submitting additional information by mail only needs to submit one copy of the
additional information unless the Associate office requests additional copies.
Identifying information
included in additional
information

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

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

.06 Generally, after the conference of right is held but before the letter ruling is issued, the
branch representative will orally notify the taxpayer or the taxpayer’s representative of the
Associate office’s conclusions. See section 10 of this revenue procedure for a discussion of
conferences of right. If the Associate office is going to rule adversely, the taxpayer will be offered
the opportunity to withdraw the letter ruling request. If, within ten calendar days of the notification
by the branch representative, the taxpayer or the taxpayer’s representative does not notify the
branch representative that the taxpayer wishes to withdraw the ruling request, the adverse letter
ruling will be issued unless an extension is granted. See 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 ruling process, the Associate office representative may request that the taxpayer or the
taxpayer’s representative submit a proposed draft of the letter ruling. Such draft would be based
on the discussions of the issues between the representative and the taxpayer or the taxpayer’s
representative. The taxpayer is not required to prepare a draft letter ruling to receive a letter ruling.
The format of the submission should be discussed with the Associate office representative who
requests the draft letter ruling. The representative usually can provide a sample format of a letter
ruling and will discuss with the taxpayer or the taxpayer’s representative the facts, analysis, and
letter ruling language to be included.
The taxpayer should submit the draft in the same manner as any other additional information
and should include in the transmittal the information that should be included with any other
additional information (for example, a penalties of perjury statement is required). See section
8.05(5) and (6) of this revenue procedure.

Issues separate letter
rulings for substantially
identical letter rulings, but
generally issues a single
letter ruling for related
§ 301.9100 letter rulings

January 3, 2023

.08

44

Bulletin No. 2023–1

Substantially identical
letter rulings

Related § 301.9100 letter
rulings

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

Sends a copy of the letter
ruling to appropriate
Service official

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

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

This section provides the specific and additional procedures applicable to a request for a change
in method of accounting under Rev. Proc. 2015-13, 2015-5 I.R.B. 419 (or any successor), as
clarified and modified by Rev. Proc. 2015-33, 2015-24 I.R.B. 1067, as modified by Section 17.02
of Rev. Proc. 2016-1, 2016-1 I.R.B. 1, as modified by Rev. Proc. 2017-59, 2017-48 I.R.B. 543,
as modified by Rev. Proc. 2021-26, 2021-22 I.R.B. 543, and as modified by Rev. Proc. 2021-34,
2021-35 I.R.B. 337, 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

Bulletin No. 2023–1

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
taxpayer requesting the change is within the scope of the procedure, the change is an automatic
change for the requested year of the change, and the taxpayer is eligible to make the change. The
Commissioner’s consent to an otherwise qualifying automatic change in method of accounting
is granted only if the taxpayer timely complies with the applicable automatic change request
procedures. But see section 9.19 of this revenue procedure concerning review by an Associate
office and a field office. In general, a taxpayer requests an automatic change by filing a current
Form 3115, Application for Change in Method of Accounting.

45

January 3, 2023

An application filed under the automatic change procedures in Rev. Proc. 2015-13 (or any
successor) or other automatic change request procedure, and this revenue procedure, is hereinafter
referred to as an “automatic change request.” See section 9.22 of this revenue procedure for a list
of automatic change request procedures. See section 9.23 for a list of the sections and Appendices
of this revenue procedure in addition to this section 9 that apply to an automatic change request.
No user fee is required for a change made under an automatic change request procedure.
Non-automatic change in
method of accounting

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

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

.02 Ordinarily, a taxpayer may request only one change in method of accounting on a Form
3115, Application for Change in Accounting Method. If the taxpayer wants to request a change in
method of accounting for more than one unrelated item or submethod of accounting, the taxpayer
must submit a separate Form 3115 for each unrelated item or submethod, except in certain
situations in which the Service specifically permits certain unrelated changes to be included on a
single Form 3115. For an example of such a situation, see section 15.01(3) of Rev. Proc. 2022-14,
2022-7 I.R.B. 502 (or its successor).

Information required with
a Form 3115
Facts and other information

A separate Form 3115 (and, therefore, a separate user fee pursuant to section 15 and Appendix
A of this revenue procedure) must be submitted for each taxpayer and each separate trade or
business of a taxpayer, including a qualified subchapter S subsidiary (QSub) or a single-member
limited liability company (single-member LLC), requesting a change in method of accounting,
except as specifically permitted or required in guidance published by the Service. See, 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. In general, a taxpayer requesting a change in method of accounting must file a
current Form 3115, unless the procedures applicable to the specific type of change in method of
accounting do not require a Form 3115 to be submitted.
To be eligible for approval of the requested change in method of accounting, the taxpayer must
provide all information requested on the Form 3115 and in its instructions and in Rev. Proc. 201513 (or any successor), and, if applicable, the automatic change request procedure. In addition,
the taxpayer must provide all information requested in the applicable sections of this revenue
procedure, including a detailed and complete description of the item being changed and of the
taxpayer’s trade(s) or business(es), the taxpayer’s present and proposed method for the item being
changed, information regarding whether the taxpayer has claimed any federal tax credit relating
to the cost being changed, information regarding whether the taxpayer is under examination,
or before Appeals or a Federal court, and a summary of the computation of the net § 481(a)
adjustment, along with an explanation of the methodology used to determine the adjustment,
sufficient to demonstrate that the net § 481(a) adjustment is computed correctly.

January 3, 2023

46

Bulletin No. 2023–1

For a non-automatic Form 3115 or an automatic change request specified in the instructions for
line 16 of the Form 3115, the taxpayer must also include a full explanation of the legal basis and
relevant authorities supporting the proposed method, and a detailed and complete description of
the facts and explanation of how the law applies to the taxpayer’s situation.
For a non-automatic Form 3115, the taxpayer must also include a statement of the applicant’s
reasons for the proposed change, copies of all documents related to the proposed change, and a
discussion of whether the law related to the request is uncertain or inadequately addresses the
issue.
The taxpayer must provide the requested information to be eligible for approval of the requested
change in method of accounting. The taxpayer may be required to provide information specific
to the requested change in method of accounting, such as an attached statement. The taxpayer
must provide all information relevant to the requested change in method of accounting, even if
not specifically requested, including an explanation of all material facts relevant to the requested
change in method of accounting.
See also sections 7.01(1) and 7.01(9) of this revenue procedure.
Statement of authorities
contrary to taxpayer’s
views

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

Documents

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

Analysis of material facts

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

Same issue in an earlier
return under examination

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

Issue previously submitted
or currently pending

(6) Statement regarding prior requests for a change in method of accounting and other
pending requests.

Bulletin No. 2023–1

47

January 3, 2023

(a) Other requests for a change in method of accounting within the past five years. A
Form 3115 must state, to the best of the knowledge of both the taxpayer and the taxpayer’s
representatives, whether the taxpayer, a related party within the meaning of § 267 or § 707(b)
(1), or a member of a current or former affiliated group of which the taxpayer is or was a member
within the meaning of §  1504, or a predecessor requested or made within the past five years
(including the year of the requested change), or is currently filing, any request for a change in
method of accounting.
If the statement is affirmative, for each separate and distinct trade or business, the Form 3115
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
the taxpayer but was not signed and returned to the Associate office, or if the change was not made
in the requested year of change, the Form 3115 must give an explanation.
(b) Any other pending request(s). A Form 3115 must state, to the best of the knowledge of
both the taxpayer and the taxpayer’s representatives, whether the taxpayer, a related party within
the meaning of § 267 or § 707(b)(1), or a member of a current or former affiliated group of which
the taxpayer is or was a member within the meaning of § 1504, or a predecessor currently have
pending any request (including any concurrently filed request) for a letter ruling, a change in
method of accounting, or technical advice.
If the statement is affirmative, the Form 3115 must give the name(s) of the taxpayer, identification
number(s), the type of request (letter ruling, request for change in method of accounting, or request
for technical advice), and the specific issues in each such request.
Statement identifying
pending legislation

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

Authorized representatives

(8) Authorized representatives. To appear before the Service in connection with a request for
a change in method of accounting, the taxpayer’s authorized representative must be an attorney,
a certified public accountant, an enrolled agent, an enrolled actuary, a person with a “Letter of
Authorization,” an employee, general partner, bona fide officer, administrator, trustee, etc., as
described in section 7.01(14) of this revenue procedure.

Power of Attorney
and Declaration of
Representative

(9) Power of Attorney and Declaration of Representative. Any authorized representative,
whether or not enrolled to practice, must comply with Treasury Department Circular No.
230, which provides the rules for practice before the Service, and the conference and practice
requirements of the Statement of Procedural Rules, which provide the rules for representing a
taxpayer before the Service. See section 7.01(15) of this revenue procedure. A taxpayer should use
Form 2848, Power of Attorney and Declaration of Representative, to provide the representative’s
authority.

Tax Information
Authorization

(10) Tax Information Authorization. A taxpayer may use Form 8821, Tax Information
Authorization, to authorize an individual to receive a copy of the taxpayer’s change in method
of accounting letter ruling and other related correspondence. If the taxpayer wishes to authorize
a corporation, firm, organization, or partnership to receive the correspondence, an individual,
identified by either name or title, must be specified on the Form 8821. A Form 8821 does not
authorize the taxpayer’s appointee to advocate the taxpayer’s position or to otherwise represent
the taxpayer before the Service.

January 3, 2023

48

Bulletin No. 2023–1

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
submitted at a later time, must be accompanied by the following declaration: “Under penalties of
perjury, I declare that I have examined this application, including accompanying schedules
and statements, and to the best of my knowledge and belief, the application contains all the
relevant facts relating to the application, and it is true, correct, and complete.”
See section 9.08(3) of this revenue procedure for the penalties of perjury statement required for
submissions of additional information.
(b) Signature by taxpayer. A Form 3115 must be signed in a manner consistent with section
7.01(13) of this revenue procedure by, or on behalf of, the taxpayer requesting the change by an
individual who has personal knowledge of the facts of, and authority to bind the taxpayer in, such
matters. For example, an officer must sign on behalf of a corporation, a general partner on behalf
of a state law partnership, a member-manager on behalf of a limited liability company, a trustee
on behalf of a trust, or an individual taxpayer on behalf of a sole proprietorship. If the taxpayer is
a member of a consolidated group, a Form 3115 should be submitted on behalf of the taxpayer by
the common parent and must be signed by a duly authorized officer of the common parent. Refer
to the signature requirements set forth in the instructions for the current Form 3115 regarding
those who are to sign. See also section 6.02(8) of Rev. Proc. 2015-13 (or any successor).
(c) Signature by preparer. If a Form 3115 is prepared by an individual other than the taxpayer,
the preparer must also sign the Form 3115 in a manner consistent with section 7.01(13) of this
revenue procedure. A declaration of preparer (other than the taxpayer) is based on all information
of which the preparer has any knowledge.

Additional procedural
information required in
certain circumstances

.04

Recipients of original and
copy of correspondence

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

Expedited handling

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

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. If the taxpayer wants a copy of the change in method of accounting letter ruling or
any other correspondence related to a Form 3115, such as a request for additional information,
to be provided to the taxpayer or the taxpayer’s authorized representative by fax, electronic
facsimile, or encrypted email attachment, the taxpayer must submit a written request, preferably
as part of the Form 3115. The request may be submitted at a later date, but it must be received
prior to the mailing of correspondence other than the letter ruling and prior to the signing of the
change in method of accounting letter ruling. The Service has the discretion to determine the form
in which it will correspond with the taxpayer, but will generally comply with a taxpayer’s request
for a particular form.

Bulletin No. 2023–1

49

January 3, 2023

If the taxpayer requests to have correspondence relating to the Form 3115 provided by fax
or electronic facsimile to the taxpayer or taxpayer’s authorized representative, the request must
contain the fax number of the taxpayer or the taxpayer’s authorized representative to whom the
correspondence is to be provided.
A document other than the change in method of accounting letter ruling will be faxed by a branch
representative. A change in method of accounting letter ruling may be faxed by either a branch
representative or the Disclosure and Litigation Support Branch of the Legal Processing Division
of the Office of Associate Chief Counsel (Procedure and Administration) (CC:PA:LPD:DS).
If the taxpayer requests documents by encrypted email attachment, the request must specify
which email encryption method is to be used and, if the taxpayer has not already provided the
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. The taxpayer must complete the appropriate line on the Form
3115 to request a conference, or must request a conference in a later written communication, if
an adverse response is contemplated by the Associate office. See section 11.03(1) of Rev. Proc.
2015-13 (or any successor), and sections 10.01 and 10.02 of this revenue procedure.

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. A taxpayer submitting a non-automatic Form 3115 by mail should
submit the original to the appropriate address below. To use the paper method, first submit the full
user fee payment set forth in Appendix A of this revenue procedure through www.pay.gov, and
include a copy of the receipt for this payment with the request. See section 15.08 of this revenue
procedure.
If a private delivery service is not used, a taxpayer, including an exempt organization, must
send the original completed Form 3115 to:
Internal Revenue Service
Attn: CC:PA:LPD:TSS
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044
If a private delivery service is used, a taxpayer, including an exempt organization, must send
the original completed Form 3115 to:
Internal Revenue Service
Attn: CC:PA:LPD:TSS
Room 5336
1111 Constitution Ave., NW
Washington, DC 20224

January 3, 2023

50

Bulletin No. 2023–1

For taxpayers, including an exempt organization, the original completed Form 3115 may be hand
delivered between the hours of 8:00 a.m. and 4:00 p m. to the courier’s desk at 1111 Constitution
Ave., NW, Washington, DC. A receipt will be given at the courier’s desk. The package should be
addressed to:
Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224
(2) Submission by electronic facsimile. Taxpayers and their representatives are encouraged
to use a secure electronic facsimile service for transmitting requests for advice. To use the secure
electronic facsimile method, first submit the full user fee payment set forth in Appendix A of this
revenue procedure through www.pay.gov, and include a copy of the receipt for this payment with
the request. See section 15.08 of this revenue procedure.
Transmit the Form 3115, along with a cover sheet, to the secure electronic facsimile line:
(877) 773-4950
(3) Submission by encrypted email attachment. There are more risks associated with email
than with electronic facsimile, such as the possibility that sensitive taxpayer information could be
intercepted. Accordingly, the Service encourages taxpayers to use a secure electronic facsimile
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.
Taxpayers using encrypted email attachments may choose to use a compression utility compatible
with SecureZIP (note that many open-source utilities are not compatible with SecureZIP), Adobe
Acrobat Pro password encryption, or Microsoft Office 365 Protect Document to encrypt and send
password-protected files. Because these programs do not encrypt the subject line or body of an
email or the file name of the attachment, all sensitive taxpayer information, including the name of
the taxpayer, should be included only in the encrypted attachment.
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.
Instead, it should be provided to the Service in a separate email with a subject line that makes it
easy to connect the password to the encrypted email.
To use encrypted email attachments, first submit the full user fee payment set forth in Appendix
A of this revenue procedure through www.pay.gov, and include a copy of the receipt for this
payment with the request. See section 15.08 of this revenue procedure.
A Form 3115 transmitted through email must be accompanied by two MOUs: the MOU
in Appendix G of this revenue procedure, acknowledging the risks of using email to transmit
sensitive taxpayer information, and the appropriate MOU in Appendix H, agreeing to the terms
for using the chosen method of encryption to receive sensitive taxpayer information. These MOUs
must be signed by the taxpayer, not the taxpayer’s representative, in a manner consistent with
section 7.01(13) of 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.

Bulletin No. 2023–1

51

January 3, 2023

Transmit the Form 3115 to the following email address:
[email protected]
Submitting automatic
Forms 3115

.06 Automatic change request. The duplicate copy of an automatic Form 3115 generally is
submitted by mail. A taxpayer that is filing an automatic Form 3115 under the provisions of Rev.
Proc. 2015-13 (or any successor) may alternatively submit the duplicate copy of the Form 3115
by fax.
(1) Submission by mail. If the automatic change request procedure requires a taxpayer to file
a duplicate copy of the completed Form 3115 for an automatic change request, and if a private
delivery service is not used, send the duplicate copy of the automatic change request Form 3115
to:
I nternal Revenue Service
Ogden, UT 84201
M/S 6111
If a private delivery service is used, send the duplicate copy of the automatic change request
Form 3115 to:
I nternal Revenue Service
1973 N. Rulon White Blvd.
Ogden, UT 84201
Attn: M/S 6111
(2) Submission by fax. Taxpayers submitting the duplicate copy of an automatic Form 3115 by
fax should do so to the following fax number:
(844) 249-8134
The submission should include a cover sheet with the following information:
Subject: “Form 3115”
Sender’s name, title, phone number, and address
Taxpayer’s name
Date
Number of pages faxed (inclusive of cover sheet)
A taxpayer should not include sensitive information on the cover sheet, such as the taxpayer’s
Employer Identification Number or Social Security Number.

January 3, 2023

52

Bulletin No. 2023–1

Technical Services Support
Branch receives, initially
controls, and refers
the Form 3115 to the
appropriate Associate office

.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 Administration)
(CC:PA:LPD:TSS) if the required user fee is submitted with the Form 3115. Once controlled, the
Form 3115 is forwarded to the appropriate Associate office for assignment and processing.

Additional information

.08

Reply period

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

Extension of reply period

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

Penalties of perjury
statement for additional
information

Bulletin No. 2023–1

(3) Penalties of perjury statement for additional information. Additional information
submitted to the Associate office must be accompanied by the following declaration: “Under
penalties of perjury, I declare that I have examined this information, including accompanying
documents, and, to the best of my knowledge and belief, the information contains all the

53

January 3, 2023

relevant facts relating to the request for the information, and such facts are true, correct,
and complete.” This declaration must be signed in accordance with the requirements in section
9.03(11)(b) of this revenue procedure.
Identifying information
included in additional
information

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

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 a change in method
of accounting ruling request, taxpayers may request that the Associate office request additional
information by fax, electronic facsimile, or encrypted email attachment. See section 9.04(3) of this
revenue procedure.
Taxpayers may also submit additional information by fax, electronic facsimile, or encrypted
email attachment as soon as the information is available. The Associate office representative who
requests additional information can provide a fax or electronic facsimile number or email address
to which the information can be faxed.

Submitting additional
information by mail

(6) Submitting additional information by mail.
(a) Address if private delivery service is not used. For a request for change in method of
accounting under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting),
if a private delivery service is not used, the additional information should be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and room number
of the Associate office representative who
requested the information]
P.O. Box 14095
Benjamin Franklin Station
Washington, DC 20044
For any other request for change in method of accounting, if a private delivery service is not
used, the additional information should be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and room number
of the Associate office representative who
requested the information]
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044
(b) Address if private delivery service is used. For a request for a change in method of
accounting, if a private delivery service is used, the additional information should be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION

January 3, 2023

54

Bulletin No. 2023–1

Attn: [Name, office symbols, and room number
of the Associate office representative who
requested the information]
1111 Constitution Ave., NW
Washington, DC 20224
Failure to timely submit
additional information to
the Associate office

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

Circumstances in which the
taxpayer must notify the
Associate office

.09 For a non-automatic Form 3115, the taxpayer must promptly notify the Associate office if,
after the Form 3115 is filed but before a change in method of accounting letter ruling is issued,
the taxpayer knows that—
(1) a field office has started an examination of the present or proposed accounting;
(2) a field office has started an examination of the proposed year of change;
(3) legislation that may affect the change in method of accounting has been introduced, see
section 9.03(7) of this revenue procedure; or
(4) another letter ruling request (including another Form 3115) has been submitted by the
taxpayer, a related party within the meaning of § 267 or § 707(b)(1), or a member of an affiliated
group of which the taxpayer is a member within the meaning of § 1504.

Determines if proposed
method of accounting
can be modified to obtain
favorable letter ruling
Near the completion of
processing the Form 3115,
advises the taxpayer if the
Associate office will rule
adversely and offers the
taxpayer the opportunity to
withdraw Form 3115

Bulletin No. 2023–1

.10 For a non-automatic Form 3115, if a less than fully favorable change in method of
accounting letter ruling is indicated, the branch representative will tell the taxpayer whether minor
changes in the proposed method of accounting would bring about a favorable ruling. The branch
representative will not suggest precise changes that materially alter a taxpayer’s proposed method
of accounting.
.11 Generally, after a conference is held (or offered, in the event no conference is held) and
before issuing any change in method of accounting letter ruling that is adverse to the requested
change in method of accounting, the taxpayer will be offered the opportunity to withdraw the
Form 3115. See sections 9.12 and 10 of this revenue procedure. If, within 10 calendar days of the
notification by the branch representative, the taxpayer or the taxpayer’s representative does not
notify the branch representative of a decision to withdraw the Form 3115, the adverse change in

55

January 3, 2023

method of accounting letter ruling will be issued unless an extension is granted. See section 15.10
for information regarding refunds of user fees.
Non-automatic Form 3115
may be withdrawn or
Associate office may decline
to issue a change in method
of accounting letter ruling

.12

In general

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

Notification of appropriate
Service official

(2) Notification of appropriate Service official. If a taxpayer withdraws, or the Associate
office declines to grant (for any reason), a request to change a method of accounting, the
Associate office will notify, in writing, the appropriate Service official in the operating division
that has examination jurisdiction of the taxpayer’s tax return and the Manager of the Methods of
Accounting and Timing Practice Network, and may give its views on the issues in the request to
the Service official to consider in any later examination of the return.
If the written notification to the Service official provides more than the fact that the request was
withdrawn and the Associate office was tentatively adverse, or that the Associate office declines to
grant a change in method of accounting, the memorandum may constitute Chief Counsel Advice,
as defined in § 6110(i)(1), and may be subject to disclosure under § 6110.

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

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

Service is not bound by
informal opinion

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

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

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

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

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

Consent Agreement

.17 Ordinarily, for a non-automatic Form 3115, the Commissioner’s permission to change a
taxpayer’s method of accounting is set forth in a letter ruling (original and a Consent Agreement
copy). If transmitting electronically, the issuing office may sign the letter ruling and the Consent
Agreement copy electronically. See section 9.04(3) of this revenue procedure. If the taxpayer
agrees to the terms and conditions contained in the change in method of accounting letter ruling,
the taxpayer must sign and date the Consent Agreement copy of the letter ruling in the appropriate
space. The Consent Agreement copy must be signed in a manner consistent with section 7.01(13)

January 3, 2023

56

Bulletin No. 2023–1

of this revenue procedure by an individual with authority to bind the taxpayer in such matters.
The Consent Agreement copy must not be signed by the taxpayer’s representative. The signed
copy of the letter ruling will constitute an agreement (Consent Agreement) within the meaning
of Treas. Reg. §  1.481-4(b). The signed Consent Agreement copy of the letter ruling must be
returned to the Associate office within 45 calendar days of the date of the letter ruling. The signed
Consent Agreement copy may be submitted under the procedures set forth above for submission
of additional information. See section 9.04(3) and 9.08(5) of this revenue procedure.
In addition, a copy of the signed Consent Agreement generally must be attached to the taxpayer’s
income tax return for the year of change. See section 11.03(2)(a) of Rev. Proc. 2015-13 (or any
successor). A taxpayer filing its return electronically should attach the Consent Agreement as a
PDF file named “Form3115Consent.” If the taxpayer has filed its income tax return for the year
of change before the letter ruling has been received and the Consent Agreement has been signed
and returned, the copy of the signed Consent Agreement should be attached to the amended return
for the year of change that the taxpayer files to implement the change in method of accounting.
A taxpayer must secure the consent of the Commissioner before changing a method of
accounting for Federal income tax purposes. See Treas. Reg. §  1.446-1(e)(2)(i). For a change
in method of accounting requested on a non-automatic Form 3115, a taxpayer has secured the
consent of the Commissioner when the taxpayer timely signs and returns the Consent Agreement
copy of the letter ruling from the Associate office granting permission to make the change in
method of accounting and otherwise complies with Rev. Proc. 2015-13 (or any successor).
A taxpayer that timely files a non-automatic Form 3115 and takes the requested change in
method of accounting into account in its federal income tax return for the year of change (and
any subsequent taxable year) prior to receiving a letter ruling granting consent for that change has
made a change in method of accounting without obtaining the consent of the Commissioner as
required by § 446(e) (an “unauthorized change”). As provided in section 12.02 of Rev. Proc. 201513 (or any successor), the Director may determine when a change is not made in compliance with
all applicable provisions of Rev. Proc. 2015-13 (or any successor) and may deny the unauthorized
change. However, the Commissioner’s consent, issued subsequent to the requested year of
change, applies back to the year of change (and any subsequent taxable year) as of the date of the
letter ruling granting consent for that change if the taxpayer timely signs and returns the Consent
Agreement copy and implements the change in accordance with all applicable provisions of Rev.
Proc. 2015-13 (or any successor) and section 11 of this revenue procedure. If the Commissioner
does not grant consent under Rev. Proc. 2015-13 (or any successor) for the change in method of
accounting taken into account by the taxpayer, the taxpayer is subject to any interest, penalties, or
other adjustments resulting from improper implementation of the change. See § 446(f). A taxpayer
who timely files a non-automatic Form 3115 and takes the requested change into account in the
taxpayer’s Federal income tax return for the year of change (and any subsequent taxable year),
prior to receiving the letter ruling granting permission for the requested change, may nevertheless
rely on the letter ruling received from the Associate office after it is received, as provided in section
9.19 of this revenue procedure. If, however, the requested change is modified or is withdrawn,
denied, or similarly closed without the Associate office having granted consent, taxpayers are not
relieved of any interest, penalties, or other adjustments resulting from improper implementation
of the change.
A copy of the change in
method of accounting letter
ruling is sent to appropriate
Service officials

Bulletin No. 2023–1

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

57

January 3, 2023

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

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

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

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

Associate office discretion
to permit requested change
in method of accounting

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

List of automatic change
in method of accounting
request procedures

.22 For procedures regarding requests for an automatic change in method of accounting, refer
to the following published automatic change request procedures. The Commissioner’s consent to
an otherwise qualifying automatic change in method of accounting is granted only if the taxpayer
complies timely with the applicable automatic change request procedure.
The automatic change request procedures for obtaining a change in method of accounting
include:
(1) Rev. Proc. 2015-13 (or any successor). Rev. Proc. 2015-13 applies to the changes in method
of accounting described in Rev. Proc. 2022-14, 2022-7 I.R.B. 502, as modified by Rev. Proc.
2022-23, 2022-18 I.R.B. 1052 (or any successor).
(2) The following automatic change request procedures, which require a completed Form 3115,
provide both the procedures under which a change may be made automatically and the procedures
under which such change must be made:
Treas. Reg. § 1.166-2(d)(3) (bank conformity for bad debts);
Treas. Reg. § 1.458-1 and -2 (exclusion for certain returned magazines, paperbacks, or records);
Rev. Proc. 97-43, 1997-2 C.B. 494 (§ 475 - electing out of certain exemptions from securities
dealer status); and
Rev. Proc. 91-51, 1991-2 C.B. 779 (§ 1286 - certain taxpayers under examination that sell
mortgages and retain rights to service the mortgages).

January 3, 2023

58

Bulletin No. 2023–1

The following automatic change request procedures, which do not require a completed Form
3115, provide the type of change in method of accounting that may be made automatically and
also provide the procedures under which such change must be made:
Notice 96-30, 1996-1 C.B. 378 (§  446 - change to comply with Statement of Financial
Accounting Standards No. 116);
Rev. Proc. 92-29, 1992-1 C.B. 748 (§  461 - change in real estate developer’s method for
including costs of common improvements in the basis of property sold);
Rev. Proc. 98-58, 1998-2 C.B. 712 (certain taxpayers seeking to change to the installment
method of accounting under §  453 for alternative minimum tax purposes for certain deferred
payment sales contracts relating to property used or produced in the trade or business of farming);
Treas. Reg. § 1.472-2 (taxpayers changing to the last-in, first-out (LIFO) inventory method);
Section 585(c) and Treas. Reg. §§ 1.585-6 and 1.585-7 (large bank changing from the reserve
method of § 585); and
Rev. Proc. 92-67, 1992-2 C.B. 429 (election under §  1278(b) to include market discount in
income currently or election under § 1276(b) to use constant interest rate to determine accrued
market discount).
(4) See Appendix F for the list of revenue procedures for automatic changes in accounting
period.
Other sections of this
revenue procedure that are
applicable to Form 3115

.23 In addition to this section 9, the following sections of this revenue procedure apply to
automatic change requests and non-automatic change requests:
1 (purpose of this revenue procedure);
2.01 (definition of “letter ruling”);
2.02 (definition of “closing agreement”);
2.05 (oral guidance);
3.01 (issues under the jurisdiction of the Associate Chief Counsel (Corporate));
3.02 (issues under the jurisdiction of the Associate Chief Counsel (Employee Benefits, Exempt
Organizations, and Employment Taxes));
3.03 (issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
Products));
3.04 (issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting));

Bulletin No. 2023–1

59

January 3, 2023

3.05 (issues under the jurisdiction of the Associate Chief Counsel (International));
3.06 (issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special
Industries));
5.03(2) (period of limitation when filing a request for extensions of time for making an election
or for other relief under § 301.9100);
6.02 (letter rulings ordinarily not issued in certain areas because of the factual nature of the
problem);
6.05 (letter rulings ordinarily not issued to business associations or groups);
6.06 (letter rulings ordinarily not issued where the request does not address the tax status,
liability, or reporting obligations of the requester);
6.08 (letter rulings ordinarily not issued on Federal tax consequences of proposed legislation);
6.10 (letter rulings not issued on frivolous issues);
6.12 (letter rulings not issued on alternative plans or hypothetical situation);
7.01(1) (statement of facts and other information);
7.01(10) (statement of supporting authorities);
7.01(14) (authorized representatives);
7.01(15) (Power of Attorney and Declaration of Representative);
7.02(2) (power of attorney used to indicate recipient of a copy or copies of a letter ruling or a
determination letter);
7.02(4) (expedited handling);
7.05(2) (notify Associate office if a return, amended return, or claim for refund is filed while
request is pending and attach request to the return);
8.01 (receipt and control of the request, and referral to the appropriate Associate office);
8.02 (contact taxpayer within 21 calendar days);
8.04 (not bound by informal opinion expressed);

January 3, 2023

60

Bulletin No. 2023–1

10 (scheduling conferences);
15 (user fees);
16 (significant changes to prior revenue procedure);
17 (effect of this revenue procedure on other documents);
18 (effective date of this revenue procedure);
Appendix A (schedule of user fees); and
Appendix F (revenue procedures and notices regarding letter ruling requests relating to specific
Code sections and subject matters).
SECTION 10. HOW ARE
CONFERENCES FOR
LETTER RULINGS
SCHEDULED?
Schedules a conference if
requested by taxpayer

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

Permits taxpayer one
conference of right

.02 A taxpayer is entitled, as a matter of right, to only one conference in the Associate office,
except as explained under section 10.05 of this revenue procedure. This conference is normally
held at the branch level and is attended by a person who has the authority to sign the letter ruling
in his or her own name or for the branch chief.
When more than one branch has taken an adverse position on an issue in a letter ruling request
or when the position ultimately adopted by one branch will affect that adopted by another, a
representative from each branch with the authority to sign in his or her own name or for the branch
chief will attend the conference. If more than one subject is to be discussed at the conference, the
discussion will constitute a conference on each subject.

Bulletin No. 2023–1

61

January 3, 2023

To have a thorough and informed discussion of the issues, the conference usually will be held
after the branch has had an opportunity to study the case. At the request of the taxpayer, the
conference of right may be held earlier.
No taxpayer has a right to appeal the action of a branch to an Associate Chief Counsel or to any
other official of the Service. But see section 10.05 of this revenue procedure for situations in which
the Associate office may offer additional conferences.
In employment tax matters, if the service recipient (the firm) requests the letter ruling, the firm
is entitled to a conference. If the worker requests the letter ruling, both the worker and the firm are
entitled to a conference. See section 5.10 of this revenue procedure.
Disallows verbatim
recording of conferences

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

Makes tentative
recommendations on
substantive issues

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

May offer additional
conferences

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

Requires written
confirmation of information
presented at conference

January 3, 2023

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

62

Bulletin No. 2023–1

May schedule a presubmission conference

.07 Sometimes it will be advantageous to both the Associate office and the taxpayer to
hold a conference before the taxpayer submits the letter ruling request to discuss substantive
or procedural issues relating to a proposed transaction. These conferences are held only if the
identity of the taxpayer is provided to the Associate office, only if the taxpayer actually intends
to make a request, only if the request involves a matter on which a letter ruling is ordinarily
issued, and only at the discretion of the Associate office and as time permits. For example, a presubmission conference will not be held on an income tax issue if, at the time the pre-submission
conference is requested, the identical issue is involved in the taxpayer’s return for an earlier period
and that issue is being examined by a field office. See section 6.01(1) of this revenue procedure.
A letter ruling request submitted following a pre-submission conference will not necessarily
be assigned to the branch that held the pre-submission conference. Also, when a letter ruling
request is not submitted following a pre-submission conference, the Associate office may notify,
by memorandum, the appropriate Service officials in the operating division that has examination
jurisdiction of the taxpayer’s tax return and may give its views on the issues raised during the
pre-submission conference. For LB&I taxpayers, a copy of the memorandum will be sent to the
Assistant Deputy Commissioner, Compliance Integration. This memorandum may constitute
Chief Counsel Advice, as defined in § 6110(i), and may be subject to disclosure under § 6110.
(1) Taxpayer may request a pre-submission conference in writing or by telephone. A
taxpayer or the taxpayer’s representative may request a pre-submission conference in writing
or by telephone. If the taxpayer’s representative is requesting the pre-submission conference,
a power of attorney is required. A taxpayer should use Form 2848, Power of Attorney and
Declaration of Representative, to provide the representative’s authority. If multiple taxpayers
and/or their authorized representatives will attend or participate in the pre-submission conference,
cross powers of attorney (or, as appropriate, tax information authorizations) are required. If the
taxpayer’s representative is requesting the pre-submission conference by telephone, the Associate
office’s representative (see list of phone numbers below) will provide the fax number to send the
power of attorney (or, as appropriate, tax information authorizations) and any other necessary
information prior to scheduling the pre-submission conference.
The request must identify the taxpayer and briefly explain the primary issue so it can be assigned
to the appropriate branch. If submitted in writing, the request should also identify the Associate
office expected to have jurisdiction over the request for a letter ruling. A written request for a
pre-submission conference should be sent to the appropriate address listed in section 7.04 of this
revenue procedure.
To request a pre-submission conference by telephone, call:
(a) (202) 317-3181 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Corporate);
(b) (202) 317-6000 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes);
(c) (202) 317-3900 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Financial Institutions and Products);
(d) (202) 317-7002 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Income Tax and Accounting);
(e) (202) 317-3800 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (International);

Bulletin No. 2023–1

63

January 3, 2023

(f) (202) 317-3100 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Passthroughs and Special Industries); or
(g) (202) 317-3400 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Procedure and Administration).
(2) Pre-submission conferences held in person or by telephone. Depending on the
circumstances, pre-submission conferences may be held in person at the Associate office or may
be conducted by telephone.
(3) Certain information required to be submitted to the Associate office prior to the presubmission conference. Generally, the taxpayer will be asked to provide a statement of whether
the issue is an issue on which a letter ruling is ordinarily issued and a draft of the letter ruling
request or other detailed written statement explaining the proposed transaction, issue, and legal
analysis, before scheduling the pre-submission conference. The Associate office will allow
taxpayers to submit a statement after the conference is scheduled at its discretion. If the taxpayer’s
authorized representative will attend or participate in the pre-submission conference, a power of
attorney is required.
(4) Discussion of substantive issues is not binding on the Service. Any discussion of
substantive issues at a pre-submission conference is advisory only, is not binding on the Service
in general or on the Office of Chief Counsel in particular, and cannot be relied upon as a basis for
obtaining retroactive relief under the provisions of § 7805(b).
May schedule a conference
to be held by telephone

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

SECTION 11. WHAT
EFFECT WILL A LETTER
RULING HAVE?

May be relied on subject to
limitations

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

Will not apply to another
taxpayer

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

January 3, 2023

64

Bulletin No. 2023–1

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

.03 When determining a taxpayer’s liability, the field office must ascertain whether—
(1) the conclusions stated in the letter ruling are properly reflected in the return;
(2) the representations upon which the letter ruling was based reflect an accurate statement of
the controlling facts;
(3) the transaction was carried out substantially as proposed; and
(4) there has been any change in the law that applies to the period during which the transaction
or continuing series of transactions were consummated.
If, when determining the liability, the field office finds that a letter ruling should be revoked
or modified, the findings and recommendations of the field office will be forwarded through the
appropriate Director to the Associate office for consideration before further action is taken by the
field office. Such a referral to the Associate office will be treated as a request for technical advice
and the provisions of Rev. Proc. 2023-2, this Bulletin, relating to requests for technical advice
will be followed. See section 13.02 of Rev. Proc. 2023-2. Otherwise, the field office should apply
the letter ruling in determining the taxpayer’s liability. If a field office having jurisdiction over a
return or other matter proposes to reach a conclusion contrary to a letter ruling previously issued
to the taxpayer, it should coordinate the matter with the Associate office.

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

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

Bulletin No. 2023–1

65

January 3, 2023

Where a letter ruling is revoked or modified by a letter to the taxpayer, the letter will state
whether the revocation or modification is retroactive. Where a letter ruling is revoked or modified
by the issuance of final or temporary regulations or by the publication of a revenue ruling, revenue
procedure, notice, or other statement in the Internal Revenue Bulletin, the document may contain
a statement as to its retroactive effect on letter rulings.
A letter ruling may be revoked even if the subject of the letter ruling is a matter that the Service
currently does not issue rulings on.
Letter ruling revoked or
modified based on material
change in facts applied
retroactively

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

Not otherwise generally
revoked or modified
retroactively

.06 Where the revocation or modification of a letter ruling is for reasons other than a change
in facts as described in section 11.05 of this revenue procedure, it will generally not be applied
retroactively to the taxpayer for whom the letter ruling was issued or to a taxpayer whose tax
liability was directly involved in the letter ruling provided that—
(1) there has been no change in the applicable law;
(2) the letter ruling was originally issued for a proposed transaction; and
(3) the taxpayer directly involved in the letter ruling acted in good faith in relying on the
letter ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer’s
detriment. For example, the tax liability of each shareholder is directly involved in a letter ruling
on the reorganization of a corporation. Depending on all facts and circumstances, the shareholders’
reliance on the letter ruling may be in good faith. The tax liability of a member of an industry,
however, is not directly involved in a letter ruling issued to another member of the same industry.
Therefore, a nonretroactive revocation or modification of a letter ruling to one member of an
industry will not extend to other members of the industry who have not received letter rulings. By
the same reasoning, a tax practitioner may not extend to one client the non-retroactive application
of a revocation or modification of a letter ruling previously issued to another client.
If a letter ruling is revoked or modified by a letter to the taxpayer with retroactive effect, the
letter to the taxpayer will, except in fraud cases, state the grounds on which the letter ruling is being
revoked or modified and explain the reasons why it is being revoked or modified retroactively.

Retroactive effect of
revocation or modification
applied to a particular
transaction

January 3, 2023

.07 A letter ruling issued on a particular transaction represents a holding of the Service on
that transaction only. It will not apply to a similar transaction in the same year or any other year.
Except in unusual circumstances, the application of that letter ruling to the transaction will not be
affected by the later issuance of regulations (either temporary or final) if conditions (1) through
(3) in section 11.06 of this revenue procedure are met.

66

Bulletin No. 2023–1

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

.08 If a letter ruling is issued covering a continuing action or series of actions and the letter
ruling is later found to be in error or no longer in accord with the position of the Service, the
appropriate Associate Chief Counsel ordinarily will limit the retroactive effect of the revocation
or modification to a date that is not earlier than that on which the letter ruling is revoked or
modified. For example, the retroactive effect of the revocation or modification of a letter ruling
covering a continuing action or series of actions ordinarily would be limited in the following
situations when the letter ruling is in error or no longer in accord with the position of the Service:
(1) A taxpayer received a letter ruling that certain payments are excludable from gross income
for Federal income tax purposes. The taxpayer ordinarily would be protected only for the payment
received after the letter ruling was issued and before the revocation or modification of the letter
ruling.
(2) A taxpayer rendered a service or provided a facility that is subject to the excise tax on
services or facilities and, in relying on a letter ruling received, it did not pass the tax on to the user
of the service or the facility.
(3) An employer incurred liability under the Federal Insurance Contributions Act but, in relying
on a letter ruling received, neither collected the employee tax nor paid the employee and employer
taxes under the Federal Insurance Contributions Act. The retroactive effect would be limited
for both the employer and employee tax. The limitation would be conditioned on the employer
furnishing wage data, as may be required by § 31.6011(a)-1 of the Treasury Regulations.

Generally not retroactively
revoked or modified if
related to sale or lease
subject to excise tax

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

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

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

Taxpayer may request
that retroactive effect of
revocation or modification
be limited

.11 Under § 7805(b), the Service may prescribe any extent to which a revocation or modification
of a letter ruling will be applied without retroactive effect.
A taxpayer to whom a letter ruling has been issued may request that the appropriate Deputy
Associate Chief Counsel limit the retroactive effect of any revocation or modification of the letter
ruling.
For letter rulings governed by Rev. Proc. 2023-4, this Bulletin, a taxpayer to whom a letter
ruling has been issued by the Commissioner, Tax Exempt and Government Entities, may request
limiting the retroactive effect of any revocation or modification of the letter ruling pursuant to the
procedures set forth in section 29 of Rev. Proc. 2023-4.

Format of request

Bulletin No. 2023–1

(1) Request for relief under § 7805(b) must be made in required format. A request to limit
the retroactive effect of the revocation or modification of a letter ruling must be in the general
form of, and meet the general requirements for, a letter ruling request, as set forth in section 7 of
this revenue procedure. Specifically, the request must also

67

January 3, 2023

(a) state that it is being made under § 7805(b);
(b) state the relief sought;
(c) explain the reasons and arguments in support of the relief requested (including a discussion
of section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue
procedure, and any other factors as they relate to the taxpayer’s particular situation); and
(d) include any documents bearing on the request.
A request that the Service limit the retroactive effect of a revocation or modification of a letter
ruling may be made in the form of a separate request for a letter ruling when, for example, a
revenue ruling has the effect of modifying or revoking a letter ruling previously issued to the
taxpayer or when the Service notifies the taxpayer of a change in position that will have the effect
of revoking or modifying the letter ruling.
When notice is given by the field office, during an examination of the taxpayer’s return, or by
Appeals, during consideration of the taxpayer’s return before Appeals, a request to limit retroactive
effect must be made in the form of a request for technical advice as explained in section 14.02 of
Rev. Proc. 2023-2, this Bulletin.
When germane to a pending letter ruling request, a request to limit the retroactive effect of a
revocation or modification of a letter ruling may be made as part of the request for the letter ruling,
either initially or at any time before the letter ruling is issued. When a letter ruling that concerns
a continuing transaction is revoked or modified by, for example, a subsequent revenue ruling, a
request to limit retroactive effect must be made before the examination of the return that contains
the transaction that is the subject of the letter ruling request.
Request for conference

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

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

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

January 3, 2023

68

Bulletin No. 2023–1

In income and gift tax
matters

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

In estate tax matters

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

In generation-skipping
transfer tax matters

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

In employment and excise
tax matters

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

In tax-exempt matters

.05 In tax-exempt matters, Directors issue determination letters in response to applications for
recognition of tax exemption under the jurisdiction of the Commissioner, TE/GE as set forth in
Rev. Proc. 2023-5.

Requests concerning
income, estate, or gift tax
returns

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

Review of determination
letters

.07 Determination letters issued under sections 12.01 through 12.04 of this revenue procedure
are not reviewed by the Associate offices before they are issued. If a taxpayer believes that a

Bulletin No. 2023–1

69

January 3, 2023

determination letter of this type is in error, the taxpayer may ask the Director to reconsider the
matter or to request technical advice from an Associate office as explained in Rev. Proc. 2023-2,
this Bulletin.
The preceding sentence does not apply to SS-8 requests under section 12.04. If a taxpayer
disagrees with a determination of employment status made in response to an SS-8 request, the
taxpayer may request that the SS-8 Program reconsider the determination letter if the taxpayer has
additional information concerning the relationship that was not part of the original submission or
the taxpayer can identify facts that were part of the original submission that the taxpayer thinks
were not fully considered.
SECTION 13. WHAT
EFFECT WILL A
DETERMINATION
LETTER HAVE?
Has same effect as a letter
ruling

.01 A determination letter issued by a Director has the same effect as a letter ruling issued to a
taxpayer under section 11 of this revenue procedure.
If a field office proposes to reach a conclusion contrary to that expressed in a determination letter,
that office need not refer the matter to the Associate office as is required for a letter ruling found
to be in error. The field office must, however, refer the matter to the Associate office through the
appropriate Director if it desires to have the revocation or modification of the determination letter
limited under § 7805(b), except if the determination letter has been issued by the Commissioner,
Tax Exempt and Government Entities. See Rev. Proc. 2023-4 and Rev. Proc. 2023-5, this Bulletin.

Taxpayer may request
that retroactive effect of
revocation or modification
be limited

.02 Under § 7805(b), the Service may prescribe the extent to which a revocation or modification
of a determination letter will be applied without retroactive effect. For determination letters that
are not issued by the Commissioner, Tax Exempt Government Entities, a Director does not have
authority under § 7805(b) to limit the revocation or modification of the determination letter.
Therefore, if the field office proposes to revoke or modify a determination letter, the taxpayer may
request limitation of the retroactive effect of the revocation or modification by asking the Director
that issued the determination letter to seek technical advice from the Associate office. See section
14.02 of Rev. Proc. 2023-2, this Bulletin.
A taxpayer to whom a determination letter has been issued by the Commissioner, Tax Exempt
and Government Entities, may request limiting the retroactive effect of any revocation or
modification of the determination letter pursuant to the procedures set forth in section 23 of Rev.
Proc. 2023-4, or section 12.04 of Rev. Proc. 2023-5, this Bulletin.

Format of request

(1) Request for relief under § 7805(b) must be made in required format. A taxpayer’s
request to limit the retroactive effect of the revocation or modification of the determination letter
must be in the form of, and meet the general requirements for, a technical advice request. See
section 14.02 of Rev. Proc. 2023-2, this Bulletin. The request must also—
(a) state that it is being made under § 7805(b);
(b) state the relief sought;
(c) explain the reasons and arguments in support of the relief sought (including a discussion
of section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue
procedure, and any other factors as they relate to the taxpayer’s particular situation); and

January 3, 2023

70

Bulletin No. 2023–1

(d) include any documents bearing on the request.
Request for conference

(2) Taxpayer may request a conference on application of § 7805(b). When technical advice
is requested regarding the application of §  7805(b), the taxpayer has the right to a conference
with the Associate office to the same extent as does any taxpayer who is the subject of a technical
advice request. See section 14.04 of Rev. Proc. 2023-2, this Bulletin.

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
Associate office for reply. The field office will notify the taxpayer that the matter has been referred.
Directors will also refer to the appropriate Associate office any request for a determination
letter that in their judgment should have the attention of the Associate office. The field office will
notify the taxpayer that the matter has been referred.

No-rule areas

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

Requests for letter rulings

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

Letter ruling request
mistakenly sent to a
Director

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

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

Bulletin No. 2023–1

.01 Section 7528 was added to the Internal Revenue Code by section 202 of the Extension of the
Temporary Assistance for Needy Families Block Grant Program, Pub. L. No. 108-89, amended
by section 891(a) of the American Jobs Creation Act of 2004, Pub. L. 108-357, and was made
permanent by section 8244 of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and
Iraq Accountability Appropriations Act, 2007, Pub. L. No. 110-28.

71

January 3, 2023

Section 7528 provides that the Secretary of the Treasury or delegate (the “Secretary”) shall
establish a program requiring the payment of user fees for requests to the Service for letter rulings,
opinion letters, determination letters, and other similar requests. The fees charged under the
program are to: (1) vary according to categories or subcategories established by the Secretary;
(2) be determined after taking into account the average time for, and difficulty of, complying
with requests in each category or subcategory; and (3) be payable in advance. The Secretary is
to provide for exemptions and reduced fees under the program as the Secretary determines to be
appropriate, but the average fee applicable to each category or subcategory must not be less than
the amount specified in § 7528(b)(3).
Requests to which a user fee
applies

.02 In general, user fees apply to all requests for—
(1) letter rulings (including non-automatic Forms 3115, Application for Change in Accounting
Method), determination letters, and advance pricing agreements;
(2) closing agreements described in paragraph (A)(3)(d) of Appendix A of this revenue
procedure and pre-filing agreements described in Rev. Proc. 2016-30, 2016-21 I.R.B. 981 (or its
successor);
(3) renewal of advance pricing agreements;
(4) reconsideration of letter rulings or determination letters; and
(5) supplemental letter rulings, determination letters, etc., to correct mistakes in original letter
rulings, determination letters, etc.
Requests to which a user fee applies must be accompanied by the appropriate fee as determined
from the fee schedule provided in Appendix A of this revenue procedure. The fee may be refunded
as provided in section 15.10 of this revenue procedure.

Requests to which a user fee
does not apply

.03 User fees do not apply to—
(1) elections made pursuant to § 301.9100-2, pertaining to automatic extensions of time (see
section 5.03 of this revenue procedure);
(2) late classification elections made pursuant to Rev. Proc. 2009-41, 2009-2 C.B. 439 (see
section 5.03(6) of this revenue procedure);
(3) late S corporation and related elections made pursuant to Rev. Proc. 2013-30, 2013-36
I.R.B. 173 (see section 5.02 of this revenue procedure);
(4) requests for a change in accounting period or method of accounting permitted to be made
by a published automatic change request revenue procedure (see section 9.01(1) of this revenue
procedure);
(5) requests for harassment campaign letter rulings under § 6104(d)(4);
(6) request for Neighborhood Land Use Rule letter rulings under § 514(b)(3);

January 3, 2023

72

Bulletin No. 2023–1

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

.04 The user fee requirements do not apply to—
(1) departments, agencies, or instrumentalities of the United States if they certify that they are
seeking a letter ruling or determination letter on behalf of a program or activity funded by Federal
appropriations. The fact that a user fee is not charged does not have any bearing on whether
an applicant is treated as an agency or instrumentality of the United States for purposes of any
provision of the Code; or
(2) requests as to whether a worker is an employee for Federal employment taxes and income
tax withholding purposes (Subtitle C of the Code) submitted on Form SS-8, Determination of
Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, or its
equivalent.

Fee schedule

.05 The schedule of user fees is provided in Appendix A of this revenue procedure. For the user
fee requirements applicable to—
(1) requests for advance pricing agreements or renewals of advance pricing agreements, see
section 3.05 of Rev. Proc. 2015-41, 2015-35 I.R.B. 263; or
(2) requests for letter rulings, determination letters, etc., under the jurisdiction of the
Commissioner, TE/GE (which no longer include changes in method of accounting), see Rev.
Proc. 2023-4 and Rev. Proc. 2023-5, this Bulletin.

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

.06
(1) Requests involving several offices. If a request dealing with only one transaction involves
more than one office within the Service (for example, one issue is under the jurisdiction of the
Associate Chief Counsel (Passthroughs and Special Industries) and another issue is under the
jurisdiction of the Commissioner, TE/GE), only one fee applies, namely the highest fee that
otherwise would apply to each of the offices involved. See Rev. Proc. 2023-4 and Rev. Proc. 20235, this Bulletin, for the user fees applicable to issues under the jurisdiction of the Commissioner,
TE/GE. However, if an 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
involves more than one fee category, only one fee applies: the highest fee that otherwise would
apply to each of the categories involved.
(3) Requests involving several issues. If a request dealing with only one transaction involves
several issues, a request for a change in method of accounting dealing with only one item or
submethod of accounting involves several issues, or a request for a change in accounting period
dealing with only one item involves several issues, the request is treated as one request. Therefore,
only one fee applies, i.e., the fee that applies to the particular category or subcategory involved.
The addition of a new issue relating to the same transaction, item, or submethod will not result

Bulletin No. 2023–1

73

January 3, 2023

in an additional fee unless the issue places the transaction, item, or submethod in a higher fee
category. So long as the issues all relate to a single transaction, a request that the Service address
one or more of the issues in a separate ruling will not result in an additional fee.
(4) Requests involving several unrelated transactions. If a request involves several unrelated
transactions, a request for a change in method of accounting involves several unrelated items
or submethods of accounting, or a request for a change in accounting period involves several
unrelated items, each transaction or item is treated as a separate request. As a result, a separate fee
will apply for each unrelated transaction, item, or submethod. An additional fee will apply if the
request is changed by the addition of an unrelated transaction, item, or submethod not contained in
the initial request. An example of a request involving unrelated transactions is a request involving
relief under § 301.9100-3 and the underlying issue.
(5) Requests involving several entities. Each entity involved in a transaction (for example,
a reorganization) that desires a separate letter ruling in its own name must pay a separate fee
regardless of whether the transaction or transactions may be viewed as related. But see section
15.07 of this revenue procedure (providing a reduced user fee for substantially identical letter
rulings or substantially identical changes in method of accounting).
(6) Requests made by married taxpayers who file jointly. A married couple filing a joint
return may jointly request a single letter ruling and pay a single user fee if the issues arise from
a joint activity or if the spouses would otherwise qualify for substantially identical letter rulings.
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. The user fees provided in paragraph (A)(5) of Appendix A of this revenue
procedure apply to the situations described in sections 15.07(2) and 15.07(4) of this revenue
procedure. To assist in the processing of these user fee requests, all letter ruling requests submitted
under this section 15.07 should—
(a) except for non-automatic Forms 3115, include the following typed or printed language at
the top of the letter ruling request: “REQUEST FOR USER FEE UNDER SECTION 15.07 OF
REV. PROC. 2023-1”;
(b) list on the first page of the submission all taxpayers and entities, and separate and distinct
trades or businesses, including QSubs or single-member LLCs, requesting a letter ruling (including
the taxpayer identification number and the amount of user fee submitted for each taxpayer, entity,
or separate and distinct trade or business); and
(c) make one payment to cover all user fees.
If the Service determines that the letter ruling requests do not qualify for the user fee provided
in paragraph (A)(5) of Appendix A of this revenue procedure, the Service will request the proper
fee. See section 15.09 of this revenue procedure.
(2) Substantially identical letter rulings and closing agreements. The user fee provided in
paragraph (A)(5)(a) of Appendix A of this revenue procedure applies to a taxpayer or taxpayers
requesting substantially identical letter rulings (including accounting period, method of accounting,
and earnings and profits requests other than those submitted on Form 1128, Application to Adopt,

January 3, 2023

74

Bulletin No. 2023–1

Change, or Retain a Tax Year, Form 2553, Election by a Small Business Corporation, Form 3115,
Application for Change in Accounting Method, and Form 5452, Corporate Report of Nondividend
Distributions) in the following situations:
The taxpayers to whom the letter rulings will be issued are multiple entities with a common
member, sponsor, or parent, or multiple members of a common entity or consolidated group; or
The taxpayers to whom the letter rulings will be issued are parties engaged together in the same
transaction affecting all requesting taxpayers.
To qualify for this reduced user fee, all information and underlying documents must be
substantially identical and all letter ruling requests must be submitted at the same time in a single
submission. In addition, the taxpayer(s) must state that the letter ruling requests and all information
and underlying documents are substantially identical, and must specifically identify the extent to
which the letter ruling requests, information, and underlying documents are not identical.
If a taxpayer or taxpayers requesting reduced user fees pursuant to this section 15.07(2) also
request a pre-submission conference pursuant to section 10.07, the taxpayer(s) should notify the
Associate office at or before the pre-submission conference that the taxpayer(s) intend to request
reduced user fees pursuant to this paragraph. At the pre-submission conference, the taxpayer(s)
should discuss with the Associate office how the letter ruling requests will satisfy the requirements
of this paragraph.
The reduced fee for substantially identical letter rulings is applicable to taxpayers requesting
closing agreements as described in section 2.02 of this revenue procedure, assuming they meet the
requirements described above for letter rulings.
(3) Substantially identical plans under § 25(c)(2)(B). The user fee provided in paragraph
(A)(5)(c) of Appendix A of this revenue procedure shall apply to a taxpayer who submits
substantially identical plans for administering the 95-percent requirement of § 143(d)(1) following
the submission and approval of an initial plan for administering the requirement. The request for
subsequent approvals of substantially identical plans must (1) state that a prior plan was submitted
and approved and include a copy of the prior plan and approval; (2) state that the subsequent
plan is substantially identical to the approved plan; and (3) describe any differences between the
approved plan and the subsequent plan.
(4) Identical changes in method of accounting and related § 301.9100 letter rulings. A
common sponsor of multiple entities, common parent of a consolidated group, or other taxpayer,
is eligible for the user fees provided in paragraphs (A)(5)(b) and (d) of Appendix A of this revenue
procedure when requesting an identical change in method of accounting on a single Form 3115,
Application for Change in Accounting Method, or an extension of time to file Form 3115 under
§ 301.9100-3 for the identical change in method of accounting, for two or more of the following
in any combination—
(a) entities of that common sponsor;
(b) members of that consolidated group;

Bulletin No. 2023–1

75

January 3, 2023

(c) separate and distinct trades or businesses (for purposes of § 1.446-1(d)) of that taxpayer or
member(s) of that consolidated group. Separate and distinct trades or businesses include QSubs
and single-member LLCs;
(d) partnerships that are wholly-owned within that consolidated group; or
(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 group; or (ii) the taxpayer is the sole controlling U.S. shareholder of the CFCs or the
sole domestic 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
sponsor, the multiple entities wholly owned or controlled by a consolidated group or other taxpayer,
or separate and distinct trades or businesses (that is, the applicants) must request to change from
an identical present method of accounting to an identical proposed method of accounting. All
aspects of the requested change in method of accounting must be identical, including the year of
change, the present and proposed methods, the underlying facts and the authority for the request,
except for the § 481(a) adjustments. If the Associate office determines that the requested changes
in method of accounting are not identical, additional user fees will be required before any letter
ruling is issued.
The taxpayer, common sponsor, or common parent must, for each applicant for which the
change in method of accounting is being requested, attach to the Form 3115 a schedule providing
the name, employer identification number (where applicable), and §  481(a) adjustment. If the
request is on behalf of eligible CFCs or noncontrolled 10-percent owned foreign corporations,
the taxpayer or common parent must attach a statement that “[a]ll controlling U.S. shareholders
(as defined in § 1.964-1(c)(5)(i)) of all the CFCs to which the request relates are members of the
common parent’s consolidated group,” that “[a]ll majority domestic corporate shareholders (as
defined in §  1.964-1(c)(5)(ii)) of all the noncontrolled 10-percent owned foreign corporations
to which the request relates are members of the common parent’s consolidated group,” that “[t]
he taxpayer filing the request is the sole controlling U.S. shareholder (as defined in § 1.964-1(c)
(5)) of the CFCs to which the request relates,” or that “[t]he taxpayer filing the request is the sole
domestic corporate shareholder (as defined in § 1.964-1(c)(5)) of the noncontrolled 10-percent
owned foreign corporations to which the request relates,” as applicable. If the request is on behalf
of eligible partnerships, the common parent must attach a statement that “[a]ll partnerships to
which the request relates are wholly-owned by members of the common parent’s consolidated
group.”
In the case of a § 301.9100 request for an extension of time to file a Form 3115 requesting an
identical change in method of accounting for multiple entities with a common sponsor, multiple
members of a consolidated group and/or multiple separate and distinct trades or businesses of
a taxpayer or member(s) of the consolidated group, or multiple eligible CFCs or noncontrolled
10-percent owned foreign corporations (applicants), the taxpayer, common sponsor, or common
parent must submit the information required in the preceding paragraph in addition to the
information required by section 5.03 of this revenue procedure.
Method of payment

January 3, 2023

.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, except for requests for a determination letter from a Director (see paragraph (A)(1) of
Appendix A), which are payable by check and mailed along with the request for determination
letter. Additionally, foreign entities that wish to submit payment from a foreign bank may submit

76

Bulletin No. 2023–1

their payment by check. To locate the appropriate form on www.pay.gov, search for “Counsel
Rulings User Fees” or navigate directly to https://www.pay.gov/public/form/start/106105509 (as
of November 9, 2022).
Effect of nonpayment
or payment of incorrect
amount

.09 If a request is not matched with full payment, the office within the Service that is responsible
for issuing the letter ruling, determination letter, advance pricing agreement, closing agreement,
or reconsideration of a letter ruling or determination letter generally will exercise discretion in
deciding whether to immediately return the request. If a request is not immediately returned, the
taxpayer will be contacted and given a reasonable amount of time to submit the proper fee. If the
proper fee is not received within a reasonable amount of time, the request will then be returned.
The Service will usually defer substantive consideration of a request until proper payment has
been received. The return of a request to the taxpayer may adversely affect substantive rights if
the request is not perfected and resubmitted to the Service within 30 calendar days of the date of
the cover letter returning the request.
If a payment is made for more than the correct amount, the request will be accepted and the
amount of the excess payment will be refunded to the taxpayer.
If a ruling is issued and because of the ruling the taxpayer’s gross income is reduced such that
the taxpayer would have qualified for a reduced user fee in Appendix A, paragraph (A)(4), the
amount of user fee paid in excess of the reduced fee will be refunded to the taxpayer.

Refunds of user fee

.10 In general, user fees will not be refunded. User fees, however, will be refunded in the
following situations.
(1) A user fee paid with a request to correct a mistake or omission in a prior issued letter
ruling, determination letter, etc., will be refunded if the Service determines that the Service was
responsible for the mistake or omission.
(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
revoked is never refunded.)
(3) A user fee paid with a request for reconsideration of the Service’s decision not to rule on
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
determines that a refund is appropriate after taking into account all the facts and circumstances,
including the amount of the Service’s time and resources spent on the request, the user fee will
be refunded.

Request for reconsideration
of user fee

Bulletin No. 2023–1

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

77

January 3, 2023

If the matter involves
primarily:

Mark for the attention of:

Associate Chief Counsel
(Corporate) letter ruling
requests

Associate Chief Counsel (Corporate)

Associate Chief Counsel
(Employee Benefits,
Exempt Organizations, and
Employment Taxes) letter
ruling requests

Deputy Associate Chief Counsel ( )
(Complete parenthetical by using the applicable designation “Employee Benefits” or “Exempt
Organizations and Employment Taxes”)

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

Associate Chief Counsel (Income Tax and Accounting)

Associate Chief Counsel
(International) letter ruling
requests

Associate Chief Counsel (International)

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

Associate Chief Counsel (Passthroughs and Special Industries)

Associate Chief Counsel
(Procedure and
Administration) letter
ruling requests

Associate Chief Counsel (Procedure and Administration)

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 or W&I

Director, SB/SE Exam, Specialty Policy

January 3, 2023

78

Bulletin No. 2023–1

Determination letter
requests submitted
pursuant to this revenue
procedure by taxpayers
under the jurisdiction of
TE/GE
SECTION 16. WHAT
SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 2022-1?

Director, Employee Plans Examinations
Director, Exempt Organizations Examinations
Director, Government Entities
(Add name of field office handling the request)

Section 5.01 has been amended to clarify that an Associate office will generally issue a letter
ruling on a completed transaction as long as the letter ruling request is submitted before a return
containing a tax position on the completed transaction is filed, even if a return has been filed
for the year in which the transaction took place. Question 5 on the Letter Ruling Checklist in
Appendix C has also been amended to reflect this clarification.
Section 9.05(1) has been amended to reflect that a taxpayer submitting a non-automatic Form
3115 on paper may not submit payment with the paper submission. Rather, the taxpayer must first
submit the appropriate user fee payment through www.pay.gov and include a copy of the receipt
for this payment with the request.
Section 9.22(2) has been amended to reflect that the method of accounting change procedures
described in Treas. Reg. 1.448-1 (to an overall accrual method for the taxpayer’s first taxable year
it is subject to § 448) are no longer available because that regulation only applies to tax years
beginning before January 1, 2018.
Section 12.05 was added to clarify that in tax-exempt matters, Directors issue determination
letters in response to applications for recognition of tax exemption under the jurisdiction of the
Commissioner, TE/GE as set forth in Rev. Proc. 2023-5.
Section 15.08 has been amended to reflect that foreign entities that wish to submit payment of
a user fee from a foreign bank may submit their payment by check instead of by using www.pay.
gov.
Editorial and clarifying changes have been made throughout.

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

Rev. Proc. 2022-1, 2022-1 I.R.B. 1, 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 3, 2023. Rev.
Proc. 2022-1 governs requests received prior to January 3, 2023.

SECTION 19.
PAPERWORK
REDUCTION ACT

The collections of information contained in this revenue procedure have been reviewed and
approved by the Office of Management and Budget in accordance with the Paperwork Reduction
Act (44 U.S.C. § 3507) under control number 1545-1522.

Bulletin No. 2023–1

79

January 3, 2023

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

The principal author of this revenue procedure is Taylor H. Huse of the Office of Associate
Chief Counsel (Procedure and Administration). For further information regarding this revenue
procedure for matters under the jurisdiction of—
(1) the Associate Chief Counsel (Corporate), contact T. Ian Russell or Jean R. Broderick at
(202) 317-3181 (not a toll-free call),
(2) the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment
Taxes), contact Melissa L. Duce at (202) 317-6000 (not a toll-free call),
(3) the Associate Chief Counsel (Financial Institutions and Products), contact K. Scott Brown
at (202) 317-6945 (not a toll-free call),
(4) the Associate Chief Counsel (Income Tax and Accounting), contact R. Matthew Kelley at
(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 Jason
Deirmenjian at (202) 317-4137 (not a toll-free call), or

January 3, 2023

80

Bulletin No. 2023–1

(7) the Associate Chief Counsel (Procedure and Administration), contact Stephanie Chernoff 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).
For further information regarding determination letters:
LB&I taxpayers should contact Joanne Jewell in the Office of the Assistant Deputy
Commissioner, Compliance Integration, LB&I, at (802) 859-1015 (not a toll-free call);
SB/SE taxpayers, for questions regarding determination letters involving estate and gift taxes,
employment taxes, or excise taxes, should contact Jesse Walker in SB/SE Specialty Exam Policy
at (240) 613-6460 (not a toll-free call);
SB/SE taxpayers, for questions regarding determination letters involving income taxes,
should submit either their question or a request to speak to someone in Field Exam Technical
Services by electronic facsimile to (877) 477-9193. If the request involves a pending request for a
determination letter, please provide the taxpayer’s taxpayer identification number, phone number,
and address as reflected in the request for a determination letter;
W&I taxpayers should submit either their question or a request to speak to someone in the
Wage & Investment Division by electronic facsimile to (855) 863-8342. If the request involves
a pending request for a determination letter, please provide the taxpayer’s taxpayer identification
number, phone number, and address as reflected in the request for a determination letter; and
TE/GE taxpayers should also refer to Revenue Procedures 2023-4 and 2023-5, this Bulletin.

Bulletin No. 2023–1

81

January 3, 2023

INDEX
References are to sections in Rev. Proc. 2023-1

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..........................................................................................8.05(5), (6); 9.08(5), (6)
Changes in Method of Accounting or Accounting Period
– applicable sections of Rev. Proc. 2023-1 for changes in method of accounting.................................. 9.23
– applicable sections of Rev. Proc. 2023-1 for accounting period.............................................. Appendix F
– automatic change request procedures.............................................................9.01, 9.06, 9.22, Appendix F
– identical changes in method of accounting.......................................................... 9.15, 15.07, Appendix A
– user fees.................................................................................................................................... Appendix A
Checklist Required......................................................................................................... 7.01(18), Appendix C
Conferences
– offered................................................................................................................................................ 10.02
after conference of right..................................................................................................................... 10.05
application of § 6110................................................................................................................. 7.01(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
Definitions
– Associate office................................................................................................................................1.01(2)
– closing agreement................................................................................................................................ 2.02
– determination letter.............................................................................................................................. 2.03
– Director............................................................................................................................................1.01(3)
– field office.........................................................................................................................................1.01(4)
– taxpayer............................................................................................................................................1.01(5)
– information letter.................................................................................................................................. 2.04
– letter ruling........................................................................................................................................... 2.01
– Service..............................................................................................................................................1.01(1)
Determinations Under § 999(d)................................................................................................................ 5.04
Discussions Not Binding on Service
– at pre-submission conference.........................................................................................................10.07(4)
– informal opinion expressed.................................................................................................................. 8.04
– oral advice to taxpayers....................................................................................................................2.05(2)
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
– jurisdiction of Commissioner, Tax Exempt and Government Entities Division.................................. 4.02
– user fee................................................................................................................................................. 4.02
Encrypted Email Attachment
– MOU to receive encrypted email.............................................................................................Appendix G
– MOU to send encrypted email.................................................................................................Appendix H
– 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)

January 3, 2023

82

Bulletin No. 2023–1

Estate Tax Matters
– issuance of determination letters............................................................................................. 12.02, 12.06
– 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)
estate tax matters.................................................................................................................................. 5.06
– when to notify Associate office............................................................................................................ 7.05
estate tax matters.................................................................................................................................. 5.06
Power of Attorney
– Form 2848........................................................................................................................ 7.01(15), 7.02(2)
original sent to the taxpayer.............................................................................................................7.02(2)
copy sent to a representative............................................................................................................7.02(2)
copies sent to multiple representatives.............................................................................................7.02(2)
no copy sent to representatives.........................................................................................................7.02(2)
– signature requirements...................................................................................................................7.01(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)
authorized representatives......................................................................................................... 7.01(14)(a)
authorized based on relationship............................................................................................... 7.01(14)(b)
return preparer........................................................................................................................... 7.01(14)(c)
foreign representative................................................................................................................ 7.01(14)(d)
Retroactive Revocation or Modification
– of determination letter............................................................................................................................. 13
request to limit retroactive effect........................................................................................................ 13.02
– of letter ruling......................................................................................................................... 11.05 - 11.10
request to limit retroactive effect.........................................................................................................11.11
Revenue Rulings
– effect on a letter ruling....................................................................................................................... 11.04
– request to limit retroactive effect.........................................................................................................11.11
Sample of a Letter Ruling Request............................................................................... 7.01(17), Appendix B
Section 301.9100 Relief.............................................................................................................................. 5.03
Section 367 Rulings.................................................................................................................................... 5.05
Status of Letter Ruling and Determination Letter Requests................................................................. 7.07
Substantially Identical Letter Rulings..........................................................................15.07(2), Appendix A

Bulletin No. 2023–1

83

January 3, 2023

Tax Exempt and Government Entities (TE/GE)
– jurisdiction of Commissioner, Tax Exempt and Government Entities Division.................................. 4.02
– user fees................................................................................................................................................ 4.02
User Fees
– schedule of user fees................................................................................................................ Appendix A
– user fee requirements.............................................................................................................................. 15
to reopen case...................................................................................................................................8.05(3)
Where to Send
– determination letter request.................................................................................................................. 7.04
– letter ruling request..................................................................................................................... 7.04, 9.05
additional information...........................................................................................8.05(5), (6); 9.08(5), (6)
hand delivery...................................................................................................................... 7.04(1), 8.05(1)
Withdrawal of Letter Ruling and Determination Letter Requests....................................................... 7.08

January 3, 2023

84

Bulletin No. 2023–1

APPENDIX A
SCHEDULE OF USER FEES
NOTE: Payment must be in U.S. dollars and made through www.pay.gov for all requests other than requests for a determination letter
from a Director (see paragraph (A)(1) of this appendix), which are payable by check and mailed along with the request for determination letter. See sections 15.08 and 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. 20231, this revenue procedure.
(2) User fee for a request for an advance pricing agreement or a renewal of an advance pricing agreement.
(3) User fee for a request for a letter ruling or closing agreement. Except
for the user fees for advance pricing agreements and renewals, the reduced
fees provided in paragraph (A)(4) of this appendix, the user fees provided in paragraph (A)(5) of this appendix, and the exemptions provided in
section 15.04 of this revenue procedure, the user fee for each request for
a letter ruling or closing agreement under the jurisdiction of the Associate
Chief Counsel (Corporate), the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes), the Associate Chief
Counsel (Financial Institutions and Products), the Associate Chief Counsel
(Income Tax and Accounting), the Associate Chief Counsel (International),
the Associate Chief Counsel (Passthroughs and Special Industries), or the
Associate Chief Counsel (Procedure and Administration) is as follows:
(a) Accounting periods
(i) Form 1128, Application to Adopt, Change, or Retain a Tax Year,
(except as provided in paragraph (A)(4)(a) of this appendix)
(ii) Requests made on Part II of Form 2553, Election by a Small
Business Corporation, to use a fiscal year based on a business purpose (except as provided in paragraph (A)(4)(a) of
this appendix)
(iii) Letter ruling requests for extensions of time to file Form
1128, Application to Adopt, Change, or Retain a Tax Year,
Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, or Part II of Form 2553 under § 301.9100-3
(except as provided in paragraph (A)(4)(a) of this appendix)
(b) Changes in Methods of Accounting
(i) Non-automatic Form 3115, Application for Change in Accounting Method (except as provided in paragraph (A)(4)(a)
or (b), or (5)(b) of this appendix)
(ii) Letter ruling requests for extensions of time to file Form
3115, Application for Change in Accounting Method, under
§ 301.9100-3 (except as provided in paragraph (A)(4)(a) or
(b), or (5)(d) of this appendix)
No user fee is required if the change in accounting period or method of accounting is permitted to be made pursuant to a published automatic change
request procedure. See section 9.22 and Appendix F of this revenue procedure, for the list of automatic change request procedures published and/or
in effect as of December 31, 2022.

Bulletin No. 2023–1

85

USER FEE FOR
REQUESTS
RECEIVED PRIOR TO
FEBRUARY 3, 2023
$275

USER FEE FOR
REQUESTS
RECEIVED AFTER
FEBRUARY 2, 2023
$275

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

$5,000

$5,000

$5,000

$5,000

$5,300

$5,300

$11,500

$11,500

$12,500

$12,500

January 3, 2023

(c) (i) 
Letter ruling requests for relief under § 301.9100-3 or
§ 1362(b)(5) (except as provided in paragraph (A)(4)(a) or
(b), or (5)(a) of this appendix)
(ii) All other letter ruling requests (including accounting period
and method of accounting requests other than those properly
submitted on Form 1128, Application to Adopt, Change,
or Retain a Tax Year, Part II of Form 2553, Election by a
Small Business Corporation, or Form 3115, Application for
Change in Accounting Method) (except as provided in paragraph (A)(4)(a) or (b), or (5)(a) of this appendix)
(d) Requests for closing agreements on a proposed transaction or
on a completed transaction before a return for the transaction
has been filed in which a letter ruling on that transaction is not
requested or issued (except as provided in paragraph (A)(4)(a) or
(b), and in paragraph (A)(5), of this appendix)
(e) A request for a Foreign Insurance Excise Tax Waiver Agreement
NOTE: A taxpayer who receives relief under § 301.9100-3 (for example, an
extension of time to file Form 3115, Application for Change in Accounting
Method) will be charged a separate user fee for the letter ruling request
on the underlying issue (for example, the accounting period or method of
accounting application).
(4) Reduced user fee for a request for a letter ruling, method or period
change, or closing agreement. A reduced user fee for a request involving a
personal, exempt organization, governmental entity, or business tax issue is
provided in the following situations if the person provides the certification
described in paragraph (B)(1) of this appendix:
(a) Request involves a tax issue from a person with gross income
(as determined under paragraphs (B)(2), (3), (4), and (5) of this
appendix) of less than $250,000
(b) Request involves a tax issue from a person with gross income
(as determined under paragraphs (B)(2), (3), (4), and (5) of this
appendix) of less than $1 million and $250,000 or more
(5) User fee for substantially identical letter ruling requests or closing
agreements, identical changes in method of accounting, or plans from
issuing authorities under § 25(c)(2)(B). If the requirements of section
15.07 of this revenue procedure are satisfied, the user fee for the following
situations is as follows:
(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 the same transaction
affecting all requesting taxpayers, for each additional letter ruling
request after the general fee or reduced fee, as applicable, has been
paid for the first letter ruling request. These requests may include,
but are not limited to, requests for substantially identical letter
rulings for two or more identical trusts, multiple beneficiaries of a
trust, a trust divided into identical subtrusts, spouses making split
gifts, or series funds within a single trust or series organization.

January 3, 2023

86

$12,600

$12,600

$38,000

$38,000

$38,000

$38,000

$8,000

$8,000

$3,000

$3,000

$8,500

$8,500

$3,800

$3,800

Bulletin No. 2023–1

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

$245

$245

$1,500

$1,500

$245

$245

$0

$0

(7) User fee for pre-filing agreements.

$181,500

$181,500

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

$37,000

$37,000

$7,500
$400

$7,500
$400

(9) Statement of Value. See Rev. Proc. 96-15 for procedures for requesting
a statement of value.
(A) User fee for a case with 1-3 items
(B) Cost per each additional item beyond 3

Bulletin No. 2023–1

87

January 3, 2023

(B) PROCEDURAL MATTERS
(1) Required certification. A person seeking a reduced user fee under paragraph (A)(4) of this Appendix must provide the following certification in order to obtain the reduced user fee:
(a) If a person is seeking a reduced user fee under paragraph (A)(4)(a) of this appendix, the person must certify in the request that
his, her, or its gross income, as defined under paragraphs (B)(2), (3), (4), and (5) of this appendix, as applicable, is less than $250,000
as reported on their last Federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the
request is filed.
(b) If a person is seeking a reduced user fee under paragraph (A)(4)(b) of this appendix, the person must certify in the request
that his, her, or its gross income, as defined under paragraphs (B)(2), (3), (4), and (5) of this appendix, as applicable, is less than $1
million and more than $250,000 as reported on their last Federal income tax return (as amended) filed for a full (12 months) taxable
year ending before the date the request is filed.
The certification must be attached as part of the ruling request.
(2) Gross income for a request involving a personal tax issue. For purposes of the reduced user fees provided in paragraphs (A)
(4)(a) and (b) of this Appendix for—
(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to “total income” as reported on their last Federal income tax return (as amended) filed for a full (12-month) taxable year ending before the date
the request is filed, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period. “Total
income” is a line item on Federal tax returns. For example, if the 2020 Form 1040, U.S. Individual Income Tax Return, is the most
recent 12-month taxable year return filed by a U.S. citizen, “total income” on the Form 1040 is the amount entered on line 9.
In the case of a request for a letter ruling or closing agreement from a domestic estate or trust that, at the time the request is filed,
has not filed a Federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this Appendix will apply
if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the last Federal income tax return
filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to
be made to total income described in paragraph (B)(2)(a), is less than $250,000 (or less than $1,000,000 for the paragraph (A)(4)(b)
fee to apply). In this case, the executor or administrator of the decedent’s estate or the grantor must provide the certification required
under paragraph (B)(1) of this appendix.
(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to “total effectively connected
income” as reported on their last Federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus any income for the period from United States or foreign sources that is not taxable by the United States,
whether by reason of § 103, an income tax treaty, § 871(h) (regarding portfolio interest), or otherwise, plus the total amount of any
fixed or determinable annual or periodical income from United States sources, the United States tax liability for which is satisfied by
withholding at the source. “Total effectively connected income” is a line item on Federal tax returns. For example, if the 2020 Form
1040-NR, U.S. Nonresident Alien Income Tax Return, is the most recent 12-month taxable year return filed by a nonresident alien
individual, “total effectively connected income” on the Form 1040-NR is the amount entered on line 9.
In the case of a request for a letter ruling or closing agreement from a foreign estate or trust that, at the time the request is filed, has
not filed a Federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this Appendix will apply if
the decedent’s or (in the case of an individual grantor) the grantor’s total income or total effectively connected income, as relevant,
as reported on the last Federal income tax return filed for a full taxable year ending before the date of death or the date of the transfer,
taking into account any additions required to be made to total income or total effectively connected income described respectively in
paragraph (B)(2)(a) of this Appendix or in this paragraph (B)(2)(b), is less than $250,000 (or less than $1,000,000 for the paragraph
(A)(4)(b) fee to apply). In this case, the executor or administrator of the decedent’s estate or the grantor must provide the certification
required under paragraph (B)(1) of this Appendix.
(3) Gross income for a request involving a business-related tax issue. For purposes of the reduced user fees provided in paragraphs (A)(4)(a) and (b) of this Appendix of—
(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to gross income
as defined under paragraph (B)(2)(a) of this Appendix, plus “cost of goods sold” as reported on the same Federal income tax return.
(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to gross income as defined under
paragraph (B)(2)(b) of this Appendix, plus “cost of goods sold” as reported on the same Federal income tax return.
(c) Partnerships with a Form 1065 filing requirement and corporations (foreign and domestic), “gross income” is equal to
“total income” as reported on their last Federal tax return (as amended) filed for a full (12 months) taxable year ending before the date
the request is filed, plus “cost of goods sold” as reported on the same Federal tax return, plus any interest income not subject to tax
under § 103 (interest on state and local bonds) for that period. Partnerships with a Form 1065 filing requirement should also include
“gross rents” reported on Form 8825 at line 2, as well as the income amounts reported on Schedule K Form 1065 at lines 3a, 5, 6a,
7, 8, 9a, 10, and 11 from the same Federal tax return described in the preceding sentence to calculate “gross income” for the purpose
of applying the reduced user fee in paragraph (A)(4) of this Appendix. S Corporations with a Form 1120S filing requirement should
also include “gross rents” reported on Form 8825 at line 2, as well as the income amounts reported on Schedule K Form 1120S at

January 3, 2023

88

Bulletin No. 2023–1

lines 3a, 4, 5a, 6, 7, 8a, 9, and 10 from the same Federal tax return described in the first sentence of this paragraph to calculate “gross
income” for the purpose of applying the reduced user fee in paragraph (A)(4) of this Appendix. If a partnership or S Corporation is
not required to file or a C corporation is not subject to tax, “total income” and “cost of goods sold” are the amounts that the partnership or corporation would have reported on the Federal tax return if the partnership or S Corporation had been required to file or the
C corporation had been subject to tax.
“Cost of goods sold” and “total income” are line items on Federal tax returns. For example, if the 2020 Form 1065, U.S. Return of
Partnership Income, is the most recent 12-month taxable year return filed by a partnership, “cost of goods sold” and “total income” on
the Form 1065 are the amounts entered on lines 2 and 8, respectively; if the 2020 Form 1120, U.S. Corporation Income Tax Return,
is the most recent 12-month taxable year return filed by a domestic corporation, “cost of goods sold” and “total income” on the Form
1120 are the amounts entered on lines 2 and 11, respectively; and if the 2020 Form 1120S, U.S. Income Tax Return for an S Corporation, is the most recent 12-month taxable year return filed by an S corporation, “cost of goods sold” and “total income” on the Form
1120S are the amounts entered on lines 2 and 6, respectively.
If, at the time the request is filed, a partnership or S corporation required to file or a C corporation subject to tax has not filed a
Federal tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) or (b) of this Appendix will apply if, in the aggregate, the partners’ or the shareholders’ gross income (as defined in paragraph (B)(3)(a), (b), or (c), of this Appendix, as applicable) is
less than $250,000 for purposes of paragraph (A)(4)(a) or $1 million for purposes of paragraph (A)(4)(b) for the last full (12 months)
taxable year ending before the date the request is filed. In this case, the partners or the shareholders must provide the certification
required under paragraph (B)(1) of this Appendix.
(4) Gross income for a request involving an exempt organization or governmental entity. For purposes of the reduced user
fees provided in paragraphs (A)(4)(a) and (b) of this Appendix of—
(a) Organizations exempt from income tax under “Subchapter F-Exempt Organizations” of the Code, “gross income” is
equal to the amount of gross receipts for the last full (12 months) taxable year ending before the date the request for a letter ruling or
closing agreement is filed.
(b) State, local, and Indian tribal government entities, “gross income” is equal to the annual operating revenue of the government requesting the ruling for its last fiscal year ending before the date of the ruling request. The annual operating revenue is to be
determined at the government level and not at the level of the government entity or agency making the request.
(5) Special rules for determining gross income. For purposes of paragraphs (B)(2), (3) and (4) of this Appendix, the following
rules apply for determining gross income.
(a) Gross income of individuals, trusts, and estates.
(1) In the case of a request from a married individual, the gross incomes (as defined in paragraph (B)(2) or (3) of this Appendix, as
applicable) of the applicant and the applicant’s spouse must be combined. This rule does not apply to an individual: (i) who is legally
separated from his or her spouse and (ii) who did not file a joint income tax return; and
(2) If there are two or more applicants filing the request, the gross incomes (as defined in paragraph (B)(2) or (3) of this Appendix,
as applicable) of the applicants must be combined.
(b) Gross income of domestic partnerships and corporations.
(1) In the case of a request from a domestic C corporation, the gross income (as defined in paragraph (B)(3) of this Appendix) of
(i) all members of the applicant’s controlled group (as defined in § 1563(a)), and (ii) any taxpayer who is involved in the transaction
on which the letter ruling or closing agreement is requested, must be combined; and
(2) In the case of a request from a domestic partnership, the gross income (as defined in paragraph (B)(3) of this Appendix) of (i)
the partnership, and (ii) any partner who owns, directly or indirectly, 50 percent or more of the capital interest or profits interest in
the partnership, must be combined.
(3) In the case of a request from an S corporation, the gross income (as defined in paragraph (B)(3) of this Appendix) of (i) the S
corporation, and (ii) any shareholder who owns 50 percent or more of the S corporation, must be combined.
(c) Gross income of exempt organizations. If there are two or more organizations exempt from income tax under Subchapter F
filing the request, the gross receipts (as defined in paragraph (B)(4)(a) of this Appendix) of the applicants must be combined.
(6) When gross income depends on a favorable ruling. If a taxpayer’s qualification for a reduced user fee under paragraphs (A)
(4)(a) and (b) of this Appendix depends on the receipt of a favorable ruling, the taxpayer must pay the higher fee with the request and
cannot assume that the Service will rule favorably. If a favorable ruling is issued, and as a result of the ruling the taxpayer’s gross
income is reduced such that the taxpayer would qualify for a reduced user fee, the amount that the taxpayer paid in excess of the
reduced user fee will be returned to the taxpayer. See section 15.09.

Bulletin No. 2023–1

89

January 3, 2023

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
Insert either: Associate Chief Counsel (insert one of the following: Corporate; Financial Institutions and Products; Income Tax and
Accounting; International; Passthroughs and Special Industries; or Procedure and Administration) or Deputy Associate Chief Counsel (insert either Employee Benefits or Exempt Organizations and Employment Taxes)
Attn: CC:PA:LPD:TSS
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044
Dear Sir or Madam:
(Insert the name of the taxpayer) requests a ruling on the proper treatment of (insert the subject matter of the letter ruling request)
under section (insert the number) of the Internal Revenue Code.
[If the taxpayer is requesting expedited handling, a statement to that effect must be attached to, or contained in, the letter ruling request. The statement must explain the need for expedited handling. See section 7.02(4) of Rev. Proc. 2023-1, this revenue procedure.
Hereafter, all references are to this revenue procedure unless otherwise noted.]
A. STATEMENT OF FACTS
1.

2.

3.

Taxpayer Information
[Provide the statements required by sections 7.01(1)(a) and (b).]
Description of Taxpayer’s Business Operations
[Provide the statement required by section 7.01(1)(c).]
Facts Relating to Transaction
[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling
request. This statement must include a detailed description of the transaction, including material facts in any accompanying
documents, and the business reasons for the transaction. See sections 7.01(1)(d), 7.01(1)(e), and 7.01(2).]
B. RULING REQUESTED

[The ruling request should contain a concise statement of the ruling requested by the taxpayer. The Service prefers that the language of the requested ruling be exactly the same as the language the taxpayer wishes to receive.]
C. STATEMENT OF LAW
[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion and identify any pending
legislation that may affect the proposed transaction. The taxpayer also is strongly encouraged to identify and discuss any authorities
believed to be contrary to the position advanced in the ruling request. See sections 7.01(6), 7.01(10), 7.01(10), and 7.01(11).]
D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also is strongly encouraged
to identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 7.01(3),
7.01(6), 7.01(9), 7.01(10), and 7.01(11).]
E. CONCLUSION
[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]

January 3, 2023

90

Bulletin No. 2023–1

F. PROCEDURAL MATTERS
1. Revenue Procedure 2023-1 Statements
a. [Provide the statement required by section 7.01(4) regarding whether any return of the taxpayer, a related party within
the meaning of § 267 or § 707(b)(1), or a member of an affiliated group of which the taxpayer is also a member within
the meaning of §  1504, or any predecessor would be affected by the requested letter ruling or determination letter, and
whether any such return is currently under examination, before Appeals, or before a Federal court, or was previously under
examination, before Appeals, or before a Federal court.]
b. [Provide the statement required by section 7.01(5)(a) regarding whether the Service previously ruled on the same or similar
issue for the taxpayer, a related party, or a predecessor. Please further note that if a reduced user fee is being submitted, a
certification of eligibility for the reduced fee must be included with the ruling request.]
c. [Provide the statement required by section 7.01(5)(b) regarding whether the taxpayer, a related party, a predecessor, or any
representatives previously submitted a request (including an application for change in method of accounting) involving the
same or similar issue but withdrew the request before a letter ruling or determination letter was issued.]
d. [Provide the statement required by section 7.01(5)(c) regarding whether the taxpayer, a related party, or a predecessor
previously submitted a request (including an application for change in method of accounting) involving the same or a similar
issue that is currently pending with the Service.]
e. [Provide the statement required by section 7.01(5)(d) regarding whether, at the same time as this request, the taxpayer or a
related party is presently submitting another request (including an application for change in method of accounting) involving
the same or similar issue to the Service.]
f. [Provide the statement required by section 7.01(5)(e) regarding whether the taxpayer or a related party had, or has scheduled,
a pre-submission conference involving the same or a similar issue.]
g. [If the letter ruling request involves the interpretation of a substantive provision of an income or estate tax treaty, provide the
statement required by section 7.01(6) regarding whether the tax authority of the treaty jurisdiction has issued a ruling on the
same or similar issue for the taxpayer, a related party, or a predecessor; whether the same or similar issue is being examined,
or has been settled, by the tax authority of the treaty jurisdiction or is otherwise the subject of a closing agreement in that
jurisdiction; and whether the same or similar issue is being considered by the competent authority of the treaty jurisdiction.]
h. [If the letter ruling request involves a transaction between a taxpayer and a related party and either the taxpayer or the related
party is located in a foreign country, provide the statement required by section 7.01(7) regarding whether this letter ruling
potentially relates to any one of these categories (include all that apply): Preferential Regime; Transfer Pricing; Downward
Adjustment; Treaty Permanent Establishment; Related Party Conduit.]
i. [Provide the statement required by section 7.01(9) regarding whether the law in connection with the letter ruling request is
uncertain and whether the issue is adequately addressed by relevant authorities.]
j. [If the taxpayer determines that there are no contrary authorities, a statement in the request to this effect should be included.
See section 7.01(10).]
k. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should
contain a statement to that effect. See section 7.02(6).]
l. [If the taxpayer is requesting a copy of any document related to the letter ruling request to be sent by fax, electronic
facsimile, or encrypted email attachment, the ruling request should contain a statement to that effect. See section 7.02(5).]
m. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement to
that effect. See section 7.02(1).]
n. [If the taxpayer is seeking to obtain the user fee provided in paragraph (A)(5)(a) of Appendix A for substantially identical
letter rulings, the letter ruling request must contain the statements required by section 15.07.]
2. Administrative
a. [The ruling request should state: “The deletion statement and checklist required by Rev. Proc. 2023-1 are enclosed.” See
sections 7.01(12) and 7.01(18).]
b. [The ruling request should state: “The required user fee of $ (Insert the amount of the fee) has been paid through www.pay.
gov” See section 15.09 and Appendix A.]
c. [If the taxpayer’s authorized representative is to sign the letter ruling request or is to appear before the Service in connection
with the request, the ruling request should state: “A Power of Attorney is enclosed.” See sections 7.01(14), 7.01(15), and
7.02(2).]
Sincerely yours,
(Insert the name of the taxpayer or the taxpayer’s authorized representative)
By:

Bulletin No. 2023–1

91

January 3, 2023

Signature

Date

Typed or printed name of
person signing request
DECLARATION: [See section 7.01(16).]
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my
knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete.

(Insert the name of the taxpayer)
By:
_____________
Signature Title Date
(must be signed by taxpayer, not by taxpayer’s representative, see section 7.01(16)(b) of this revenue procedure)
Typed or printed name of
person signing declaration
[If the taxpayer is a corporation that is a member of an affiliated group filing consolidated returns, the above declaration must also be
signed and dated by an officer of the common parent of the group. See section 7.01(16).]

January 3, 2023

92

Bulletin No. 2023–1

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

ITEM

Yes No

1. Does your request involve an issue under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate
Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special Industries), or the Associate
Chief Counsel (Procedure and Administration)? See section 3 of Rev. Proc. 2023-1, this revenue procedure. For
issues under the jurisdiction of other offices, see section 4 of this revenue procedure. (Hereafter, all references are
to this revenue procedure unless otherwise noted.)

Yes No

2. Have you read Rev. Proc. 2023-1, Rev. Proc. 2023-3, and Rev. Proc. 2023-7, this Bulletin, to see if part or all of
the request involves a matter on which letter rulings are not issued or are ordinarily not issued?

Yes No N/A

3. If your request involves a matter on which letter rulings are not ordinarily issued, have you given compelling
reasons to justify the issuance of a letter ruling? Before preparing your request, you may want to call the branch
in the Office of Associate Chief Counsel (Corporate), the Office of Associate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment Taxes), the Office of Associate Chief Counsel (Financial Institutions
and Products), the Office of Associate Chief Counsel (Income Tax and Accounting), the Office of Associate Chief
Counsel (International), the Office of Associate Chief Counsel (Passthroughs and Special Industries), or the Office of Associate Chief Counsel (Procedure and Administration) responsible for substantive interpretations of the
principal Internal Revenue Code section on which you are seeking a letter ruling to discuss the likelihood of an
exception. For matters under the jurisdiction of—

(a) the Office of Associate Chief Counsel (Corporate), the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes), the Office of Associate Chief Counsel (Financial Institutions
and Products), the Office of Associate Chief Counsel (Income Tax and Accounting), the Office of Associate Chief
Counsel (Passthroughs and Special Industries), or the Office of the Associate Chief Counsel (Procedure and Administration), the appropriate branch to call may be obtained by calling (202) 317-5221 (not a toll-free call);

(b) the Office of the Associate Chief Counsel (International), the appropriate branch to call may be obtained by
calling (202) 317-3800 (not a toll-free call).

Bulletin No. 2023–1

93

January 3, 2023

Yes No N/A
Page

4. If the request involves a retirement plan qualification matter relating to § 401(a), § 409, or § 4975(e)(7), have you
demonstrated that the request satisfies section 4.02(12) of Rev. Proc. 2023-3, this Bulletin, for a ruling?

Yes No N/A
Page

5. If the request deals with a completed transaction, have you filed a return containing a tax position on the completed
transaction? See section 5.01.

Yes No

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

Yes No

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

Yes No

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

Yes No
Page __

9. Are you requesting a letter ruling under the jurisdiction of Associate Chief Counsel (Corporate) on a significant
issue (within the meaning of section 3.01(60) of Rev. Proc. 2023-3, this Bulletin) with respect to a transaction described in § 332, § 351, § 355, or § 1036 or a reorganization within the meaning of § 368? See section 6.03(2).

Yes No

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

Yes No

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

Yes No
Page

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

Yes No N/A

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

Yes No N/A

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

Yes No

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

Yes No
Page

16. Have you included the required statement regarding whether any return of the taxpayer (or any related party
within the meaning of § 267 or § 707(b)(1), or any member of an affiliated group of which the taxpayer is also
a member within the meaning of § 1504, or any predecessor) would be affected by the requested letter ruling or
determination letter and whether any such return is currently or was previously under examination, before Appeals,
or before a Federal court? See section 7.01(4).

Yes No
Page

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

Yes No
Page

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

Yes No
Page

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

Yes No
Page

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

January 3, 2023

94

Bulletin No. 2023–1

Yes No
Page __

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

Yes No N/A
Page

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

Yes No N/A
Page __

23. If your request involves a transactionbetween a taxpayer and a related party and either the taxpayer or the related
party is located in a foreign country, have you included the required statement regarding whether the letter ruling
relates to any one of these categories (include all that apply: Preferential Regime; Transfer Pricing; Downward
Adjustment; Treaty Permanent Establishment; Related Party Conduit? See section 7.01(7).

Yes No N/A
Page

24. If your request is for recognition of Indian tribal government status or status as a political subdivision of an
Indian tribal government, does your request contain a letter from the Bureau of Indian Affairs regarding the tribe’s
status? See section 7.01(8), which states that taxpayers are encouraged to submit this letter with the request and
provides the address for the Bureau of Indian Affairs.

Yes No
Page

25. Have you included the required statement of relevant authorities in support of your views? See section 7.01(9).

Yes No
Page

26. Have you included the required statement regarding whether the law in connection with the request is uncertain
and whether the issue is adequately addressed by relevant authorities? See section 7.01(9).

Yes No
Pages

27. Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations, notices,
revenue rulings, or revenue procedures that you determined to be contrary to the position advanced? See section
7.01(10), which states that taxpayers are encouraged to inform the Service of such authorities.

Yes No N/A
28. If you determined that there are no contrary authorities, have you included a statement to this effect in your
Page request? See section 7.01(10).
Yes No N/A
29. Have you included in your request a statement identifying any pending legislation that may affect the proposed
Page transaction? See section 7.01(11).
Yes No

30. Have you included the deletion statement required by § 6110 and placed it on the top of the letter ruling request
as required by section 7.01(12)(b)?

Yes No
Page

31. Have you (or your authorized representative) signed and dated the request or separately transmitted a signature
in an acceptable electronic form? See section 7.01(13).

Yes No N/A

32. If the request is signed by your representative or if your representative will appear before the Service in connection with the request, is the request accompanied by a properly prepared and signed power of attorney with the
signatory’s name typed or printed? See section 7.01(15).

Yes No
Page

33. Have you signed, dated, and included the penalties of perjury statement in the format required by section 7.01(16)?

Yes No N/A
Page

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

Yes No N/A

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

Yes No N/A

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

Bulletin No. 2023–1

95

January 3, 2023

Yes No N/A

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

Yes No N/A
Page

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

Yes No N/A
Page

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

Yes No N/A

40. If you are requesting a copy of any document related to the letter ruling request to be sent by encrypted email
attachment, have you specified an acceptable encryption method to be used and included the appropriate MOUs
from Appendices G and H, signed and dated by the taxpayer? See section 7.02(5) and 7.04(3).

Yes No N/A
Page

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

Yes No N/A

42. If you are submitting your request on paper, are you submitting additional copies if necessary? See section
7.04(1).

Yes No N/A

43. If you are submitting your request by electronic facsimile or encrypted email attachment, have you provided
clear titles for documents and files, and broken up the request into smaller components for transmission if necessary? See section 7.04(2) and (3).

Yes No N/A

44. If you are submitting your request by encrypted email attachment, have you used an acceptable file format and
included the appropriate MOUs from Appendices G and H, signed and dated by the taxpayer? See section 7.04(3).

Yes No

45. Have you paid the correct user fee through www.pay.gov? See section 15 and Appendix A to determine the correct amount.

Yes No N/A
Page __

46. If you qualify for a reduced user fee because your gross income is less than $250,000, have you included the
required certification? See paragraphs (A)(4)(a) and (B)(1) of Appendix A.

Yes No N/A
Page __

47. If you qualify for a reduced user fee because your gross income is less than $1 million, have you included the
required certification? See paragraphs (A)(4)(b) and (B)(1) of Appendix A.

Yes No N/A
Page

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

Yes No N/A
Page

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

Yes No N/A
Rev. Proc.
__________
__________
__________

50. If your request is covered by any of the checklists, guideline revenue procedures, notices, safe harbor revenue
procedures, or other special requirements listed in Appendix F, have you complied with all of the requirements of
the applicable revenue procedure or notice?
List other applicable revenue procedures or notices, including checklists, used or relied upon in the preparation of
this letter ruling request (Cumulative Bulletin or Internal Revenue Bulletin citation not required).

Yes No N/A
Page

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

Yes No N/A
Page __

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

January 3, 2023

96

Bulletin No. 2023–1

Yes No N/A
Page __

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

Yes No

54. If you are requesting relief under § 301.9100, have you included the affidavit(s) and declaration(s) required by
§ 301.9100-3(e)? See section 5.03(1).

Yes No N/A

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

Yes No

56. Have you addressed your request to the attention of the Associate Chief Counsel (Corporate), the Associate
Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting),
the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special Industries), the
Associate Chief Counsel (Procedure and Administration), the Deputy Associate Chief Counsel (Employee Benefits), or the Deputy Associate Chief Counsel (Exempt Organizations and Employment Taxes), as appropriate? The
mailing address for packages submitted on paper is:
Internal Revenue Service
Attn: CC:PA:LPD:TSS
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

If a private delivery service is used, the address is:
Internal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224

Packages submitted on paper should be marked RULING REQUEST SUBMISSION. Improperly addressed requests may be delayed (sometimes for over a week) in reaching CC:PA:LPD:TSS for initial processing.

_______________________

Signature

Title or Authority

Date

Typed or printed name of
person signing checklist

Bulletin No. 2023–1

97

January 3, 2023

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

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

January 3, 2023

98

Bulletin No. 2023–1

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

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

8. Is the composition of the committee stated?

Yes No N/A
Page ___

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

Yes No N/A
Page ___

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

Yes No N/A
Page ___

11. Is there a representation as to whether an election has ever been made under § 1.410(d)-1 of the Federal Income
Tax Regulations to apply certain provisions of the Code and ERISA to the plan?

Bulletin No. 2023–1

99

January 3, 2023

APPENDIX F
CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR REVENUE PROCEDURES, AND
AUTOMATIC CHANGE REVENUE PROCEDURES
Specific revenue procedures and notices supplement the general instructions for requests explained in section 7 of this revenue procedure and apply to requests for letter rulings or determination letters regarding the Code sections and matters listed in this section.
Checklists, guideline revenue procedures, and notices

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

CODE OR REGULATION
SECTION

REVENUE PROCEDURE AND NOTICE

103, 141 - 150, 1394,
1400L(d), 1400N(a), 1400U1, 1400U-3, 7478, and 7871
Issuance of state or local
obligations

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

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

Rev. Proc. 92-84, 1992-2 C.B. 489.

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

Rev. Proc. 77-37, 1977-2 C.B. 568, as amplified by Rev. Proc. 77-41, 1977-2 C.B. 574, Rev.
Proc. 83-81, 1983-2 C.B. 598, and as modified by Rev. Proc. 89-30, 1989-1 C.B. 895 (see also
Rev. Proc. 2023-3, this Bulletin); Rev. Proc. 84-42, 1984-1 C.B. 521 (superseded, in part, as to
no-rule areas by Rev. Proc. 2023-3); Rev. Proc. 86-42, 1986-2 C.B. 722; Rev. Proc. 89-50, 1989-2
C.B. 631; Rev. Proc. 2017-52, 2017-41 I.R.B. 283 (relating to Transactional Rulings for Covered
Transactions); and Rev. Proc. 2018-53, 2018-43 I.R.B. 667. But see section 3.01(60) of Rev. Proc.
2023-3, which states that the Service will not issue a letter ruling as to whether a transaction
constitutes a reorganization within the meaning of § 368 (except as provided in section 6.03(2)(b)
of this revenue procedure). However, the Service will issue a letter ruling addressing significant
issues (within the meaning of section 3.01(60) of Rev. Proc. 2023-3) presented in a reorganization within the meaning of § 368. See section 6.03(2) of this revenue procedure. In addition, the
Service will issue a Transactional ruling for a Covered Transaction, as described in Rev. Proc.
2017-52 (amplified and modified by Rev. Proc. 2018-53).

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

Rev. Proc. 87-22, 1987-1 C.B. 718.

302, 311
Checklist questionnaire

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

302(b)(4)
Checklist questionnaire

Rev. Proc. 81-42, 1981-2 C.B. 611.

311
Checklist questionnaire

Rev. Proc. 86-16, 1986-1 C.B. 546.

332
Checklist questionnaire

See section 3.01 of Rev. Proc. 2023-3, this Bulletin, which states that the Service will not issue
a letter ruling on whether a corporate distribution qualifies for nonrecognition treatment under
§  332. However, the Service will issue a letter ruling addressing significant issues (within the
meaning of section 3.01 of Rev. Proc. 2023-3) presented in a transaction described in § 332. The
information and representations described in Rev. Proc. 90-52, 1990-2 C.B. 626, should be included in a letter ruling request only to the extent that they relate to the significant issues with respect
to which the letter ruling is requested. See section 6.03(3) of this revenue procedure.

January 3, 2023

100

Bulletin No. 2023–1

338
Extension of time to make
elections

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

351
Checklist questionnaire

See section 3.01 of Rev. Proc. 2023-3, this Bulletin, which states that the Service will not issue
a letter ruling on whether certain transfers to controlled corporations qualify for nonrecognition
treatment under § 351. However, the Service will issue a letter ruling addressing significant issues
(within the meaning of section 3.01 of Rev. Proc. 2023-3) presented in a transaction described
in § 351. The information and representations described in Rev. Proc. 83-59, 1983-2 C.B. 575,
should be included in a letter ruling request only to the extent that they relate to the significant
issues with respect to which the letter ruling is requested. See section 6.03(3) of this revenue
procedure.

355
Checklist questionnaire

Rev. Proc. 2017-52, 2017-41 I.R.B. 283, and Rev. Proc. 2018-53, 2018-43 I.R.B. 667. See also
section 6.03(2) of this revenue procedure.

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

See section 3.01 of Rev. Proc. 2023-3, this Bulletin, which states that the Service will not issue a
letter ruling as to whether a transaction constitutes a reorganization, including a recapitalization
within the meaning of § 368(a)(1)(E) (or a transaction that qualifies under § 1036). However, the
Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01
of Rev. Proc. 2023-3) presented in a transaction described in § 368(a)(1)(E) (or in a transaction
described in § 1036). The information and representations described in Rev. Proc. 81-60, 1981-2
C.B. 680, should be included in a letter ruling request only to the extent that they relate to the
significant issues. See section 6.03(3) of this revenue procedure.

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

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

412(c)
Minimum funding standards

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

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

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

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

Rev. Proc. 94-42, 1994-1 C.B. 717, as modified by Rev. Proc. 2023-4, this Bulletin, sets forth
procedures under which a plan sponsor may file notice with and obtain approval for a retroactive
amendment described in § 412(d)(2) (formerly § 412(c)(8)) and § 302(d)(2) of the Employee Retirement Income Security Act of 1974 (ERISA) that reduces prior accrued benefits.

414(e)
Church plans

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

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

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

Bulletin No. 2023–1

101

January 3, 2023

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

Rev. Proc. 92-29, 1992-1 C.B. 748.

482
Advance pricing agreements

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

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

Rev. Proc. 2023-5, this Bulletin.

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

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

860
Self Determination of Deficiency Dividend

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

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

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

1059(c)(4)
Fair market value of stock
for purposes of election

Rev. Proc. 86-33, 1987-29 C.B. 402, provides guidance to corporate taxpayers on how to make
the election under section 1059(c)(4) and establish the fair market value of stock for purposes
of that election. It provides an automatic procedure to value publicly traded stock and valuation
procedures for other stock.

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

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

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

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

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

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

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

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

January 3, 2023

102

Bulletin No. 2023–1

1.1502-76(a)(1)
Consent to file a consolidated
return where member(s) of
the affiliated group use a 5253 week taxable year

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

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

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

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

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

2642
Allocations of generation-skipping transfer tax
exemption

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

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

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

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

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

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

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

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

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

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

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

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

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

301.9100-3
Extension of time to make
entity classification election

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

Bulletin No. 2023–1

103

January 3, 2023

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

Rev. Proc. 2008-38, 2008-2 C.B. 139.

7702
Closing agreement for failed
life insurance contracts

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

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

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

7704(g)
Revocation of election

Notice 98-3, 1998-1 C.B. 333.

SUBJECT MATTERS

REVENUE PROCEDURE

Accounting periods; changes
in period

Rev. Proc. 2002-39, 2002-1 C.B. 1046, as clarified and modified by Notice 2002-72, 2002-2 C.B.
843, as modified by Rev. Proc. 2003-34, 2003-1 C.B. 856, and modified by Rev. Proc. 200379, 2003-2 C.B. 1036; and this revenue procedure, for which sections 1, 2.01, 2.02, 2.05, 3.04,
5.02, 6.03, 6.05, 6.07, 6.11, 7.01(1), 7.01(2), 7.01(3), 7.01(4), 7.01(5), 7.01(6), 7.01(9), 7.01(10),
7.01(11), 7.01(14), 7.01(15), 7.01(16), 7.02(2), 7.02(4), 7.02(5), 7.02(6), 7.04, 7.05, 7.06, 7.08,
8.01, 8.03, 8.04, 8.05, 8.06, 10, 11, 15, 17, 18, Appendix A, and Appendix F are applicable.

Classification of liquidating
trusts

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

Earnings and profits determinations

Rev. Proc. 75-17, 1975-1 C.B. 677; this revenue procedure, sections 2.05, 3.04, 7, 8, and 10.05;
and Rev. Proc. 2023-3, this Bulletin, section 3.01.

Estate, gift, and generation-skipping transfer tax
issues

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

Intercompany transactions;
election not to defer gain or
loss

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

Leveraged leasing

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

Rate orders; regulatory agency; normalization

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

January 3, 2023

104

Bulletin No. 2023–1

Unfunded deferred compensation

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

Safe harbor revenue procedures

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

CODE OR REGULATION
SECTION

REVENUE PROCEDURE

23 and 36C
Adoption credit for foreign
adoptions

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

103 and 141-150
Issuance of state or local
obligations

Rev. Proc. 2017-13, 2017-6 I.R.B. 787 (management contracts); and Rev. Proc. 2007-47, 2007-2
C.B. 108 (research agreements).

137
Exclusion for Employer
Reimbursements

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

162
Restaurant Small Wares
Costs

Rev. Proc. 2002-12, 2002-1 C.B. 374.

165
Losses from corrosive drywall

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

165
Theft losses from fraudulent
investment arrangements

Rev. Proc. 2009-20, 2009-14 I.R.B. 749, as modified by Rev. Proc. 2011-58, 2011-50 I.R.B. 849.

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

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

168
Depreciation of original and
replacement tires for certain
vehicles

Rev. Proc. 2002-27, 2002-1 C.B. 802.

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

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

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

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

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

Rev. Proc. 2007-48, 2007-2 C.B. 110

Bulletin No. 2023–1

105

January 3, 2023

263
Safe harbor methods for track
structure expenditures

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

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

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

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

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

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

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

263
Electric trade and distribution
property assets

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

263A
Safe harbor methods for certain motor vehicle dealerships

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

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

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

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

Rev. Proc. 95-27, 1995-1 C.B. 704.

446
Film producer’s treatment of
certain creative property costs

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

446
Bank’s treatment of uncollected interest

Rev. Proc. 2007-33, 2007-1 C.B. 1289.

448
Nonaccrual-experience method - book safe harbor method

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

451
Safe harbor for capital cost
reduction payments

Rev. Proc. 2002-36, 2002-1 C.B. 993.

January 3, 2023

106

Bulletin No. 2023–1

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

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

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

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

461
Safe harbor method for payroll tax liabilities for compensation

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

471
Estimating inventory shrinkage

Rev. Proc. 98-29, 1998-1 C.B. 857.

471
Valuation of automobile dealer vehicle parts inventory

Rev. Proc. 2002-17, 2002-1 C.B. 676.

471
Valuation of remanufactured
cores

Rev. Proc. 2003-20, 2003-1 C.B. 445.

471 Valuation of heavy
equipment dealer parts
inventory

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

471
Rolling-average method of
accounting for inventories

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

475
Eligible positions

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

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

Rev. Proc. 92-51, 1992-1 C.B. 988.

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

Rev. Proc. 88-53, 1988-2 C.B. 712.

664
Charitable remainder trusts

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

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

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

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

Rev. Proc. 2005-52, 2005-2 C.B. 326; Rev. Proc. 2005-53, 2005-2 C.B. 339; Rev. Proc. 2005-54,
2005-2 C.B. 353; Rev. Proc. 2005-55, 2005-2 C.B. 367; Rev. Proc. 2005-56, 2005-2 C.B. 383;
Rev. Proc. 2005-57, 2005-2 C.B. 392; Rev. Proc. 2005-58, 2005-2 C.B. 402; Rev. Proc. 2005-59,
2005-2 C.B. 412.

Bulletin No. 2023–1

107

January 3, 2023

832
Insurance company premium
acquisition expenses

Rev. Proc. 2002-46, 2002-2 C.B. 105.

856(c)
Certain loans treated as real
estate assets

Rev. Proc. 2003-65, 2003-2 C.B. 336.

1031(a)
Qualification as a qualified
exchange accommodation
arrangement

Rev. Proc. 2000-37, 2000-2 C.B. 308, as modified by Rev. Proc. 2004-51, 2004-2 C.B. 294.

1031
Safe harbor with respect to
exchanges of residential real
property

Rev. Proc. 2008-16, 2008-1 C.B. 547.

1031
Safe harbor for reporting gain
or loss on failed exchanges

Rev. Proc. 2010-14, 2010-12 I.R.B. 456.

1272(a)(6)
Proportional method of
accounting for original issue
discount on pools of credit
card receivables

Rev. Proc. 2013-26, 2013-22 I.R.B. 1160.

1286
Determination of reasonable
compensation under mortgage servicing contracts

Rev. Proc. 91-50, 1991-2 C.B. 778.

1362(f)
Automatic inadvertent
termination relief to certain
corporations

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

2056A
Qualified Domestic Trust

Rev. Proc. 96-54, 1996-2 C.B. 386.

2702(a)(3)(A) and 25.27025(c)
Qualified Personal Residence
Trust

Rev. Proc. 2003-42, 2003-1 C.B. 993.

4051(a)(2)
Imposition of tax on heavy
trucks and trailers sold at
retail

Rev. Proc. 2005-19, 2005-1 C.B. 832.

1.7704-2(d)
New business activity of
existing partnership is closely
related to pre-existing business

Rev. Proc. 92-101, 1992-2 C.B. 579.

SUBJECT MATTERS

REVENUE PROCEDURE

Certain rent-to-own contracts
treated as leases

Rev. Proc. 95-38, 1995-2 C.B. 397.

January 3, 2023

108

Bulletin No. 2023–1

Automatic change in
accounting period revenue
procedures

.03 For requests for an automatic change in accounting period, refer to the following automatic
change revenue procedures.
Rev. Proc. 2006-45, 2006-2 C.B. 851, as clarified and modified by Rev. Proc. 2007-64, 2007-2
C.B. 818 (certain corporations); Rev. Proc. 2006-46, 2006-2 C.B. 859 (certain partnerships, subchapter S corporations, personal service corporations, and trusts); and Rev. Proc. 2003-62, 2003-2
C.B. 299 (individuals seeking a calendar year).
The Commissioner’s consent to an otherwise qualifying automatic change in accounting period
is granted only if the taxpayer timely complies with the applicable automatic change revenue
procedure.

Bulletin No. 2023–1

109

January 3, 2023

APPENDIX G
MEMORANDUM OF UNDERSTANDING ACKNOWLEDGING RISK WITH EMAIL
I acknowledge that there are risks associated with email, such as the possibility that sensitive taxpayer information could be intercepted and viewed by unauthorized persons. I understand the importance of securing email using appropriate encryption, particularly
when transmitting sensitive or confidential tax-related information. I understand that encryption programs only encrypt the email
attachment and not the subject line or the body of the email itself, and that confidential information should not be included in the
subject line, the body of the email itself, or the file name of the attachment. By signing this agreement, I understand that sensitive or
confidential information should be sent only by encrypted email attachments in communicating with the IRS.
Even with encryption it is possible electronic communications could be intercepted. I acknowledge that the United States Government does not guarantee the security of data transmitted electronically by email and accepts no liability, regardless of fault, for any
loss or damage sustained without negligence of United States Government employees.
(Name of Taxpayer)
(Title of Individual Signing Agreement)
SIGNATURE: _______________________________
DATE: _______________________________

January 3, 2023

110

Bulletin No. 2023–1

APPENDIX H
MEMORANDUMS OF UNDERSTANDING AGREEING TO USE ENCRYPTED EMAIL ATTACHMENTS
Agreement to use encrypted email attachments
(compressed Zip format)

.01 For requesters choosing to use encrypted email attachments in compressed Zip format, submit the following MOU:

Agreement to Use Encrypted Email Attachments (Compressed Zip format)
Generally, the Office of Chief Counsel, Internal Revenue Service (Chief Counsel) communicates with taxpayers or their representatives by sending documents through the mail or via facsimile, or by telephone. In many cases communication by email is more
convenient for both the taxpayer and Chief Counsel. There are risks associated with email, such as the possibility sensitive taxpayer
information could be intercepted. If an email is intercepted, any personal information in the email could be viewed by unauthorized
persons. It is important to secure email using appropriate encryption, particularly when transmitting sensitive or confidential tax-related information. This agreement is intended to enhance the process of securely exchanging taxpayer data and other tax-related
information and increase efficiency of interaction between Chief Counsel and taxpayers or their representatives.
1. Communications
In order to communicate in a formal, efficient manner for tax issues, written communication is essential. Email is one form of written
communication; however, in order to protect sensitive information, additional safeguards are necessary for email communications
which are not generally required for paper documents. Chief Counsel and the taxpayer, by this agreement, consent to written communications being transmitted via encrypted email attachments. In order to limit access to this information, Chief Counsel and the
taxpayer agree to designate participants and provide the list of participants in an addendum to this agreement. Only individuals designated as participants by Chief Counsel and the taxpayer on that list will be included in these communications. The taxpayer will be
responsible for providing an updated list when there are changes to their designated participants.
2. Encrypted Email Attachments
Chief Counsel uses SecureZIP®, a commercial program, to compress and encrypt email attachments that contain sensitive information. The recipient of encrypted email attachments created using this utility may decrypt and view them by entering a password. The
recipient must first install a compatible “zip” software utility. In addition to SecureZIP®, compatible utilities include PKZIP®, and
ZIP Reader® by PKWARE®, which is a free Windows utility that enables users to process compressed and/or AES passphrase-encrypted files created by SecureZIP®, PKZIP® and other products that support these capabilities. SecureZIP and compatible utilities
only encrypt the email attachment and not the subject line nor the body of the email itself. To prevent interception and viewing of
sensitive or other confidential tax-related information by unauthorized persons, such information must not be included in the email
body or subject line.
3. Security
Both parties agree to work together to ensure the joint security of the information contained in the encrypted email attachment. Pursuant to this MOU, Chief Counsel certifies that its system used to transmit, store, or process data is designed, managed, and operated
in a secure manner in compliance with relevant laws, regulations, and policies. The taxpayer should also undertake steps to ensure
proper security protections are employed to transmit, receive, and store this information. By signing this agreement, the taxpayer
understands that sensitive or confidential information should be sent only by encrypted email attachment in communicating with the
IRS. Even with encryption it is possible electronic communications could be intercepted. By signing this agreement, the taxpayer
acknowledges that the United States Government does not guarantee the security of data transmitted electronically by email and accepts no liability, regardless of fault, for any loss or damage sustained without negligence of United States Government employees.
4. Costs
Both parties agree to bear all of their own costs on a nonreimbursable basis in complying with this agreement.
5. Timeline
This agreement is effective upon the signatures of both parties and will remain in effect for the duration of the matter in Chief Counsel, including, but not limited to such time as the matter is on appeal or pending before other United States Government agencies
such as the Department of the Treasury or Department of Justice. As a new participant is added to the MOU, they are added to the

Bulletin No. 2023–1

111

January 3, 2023

addendum and both the MOU and the addendum remain part of the case or administrative file. If either the taxpayer or Chief Counsel
wishes to terminate this agreement before it expires, it may be done upon thirty (30) days’ advance notice. In the event of a security
incident, Chief Counsel may immediately terminate the agreement.
6 Additional Terms
Nothing in this agreement shall be construed as a waiver of any sovereign immunity of the United States Government. This agreement
is not intended to contravene in any way, the precedence or applicability of Federal law and shall be governed by and construed under
Federal law of the United States of America.
(Name of Taxpayer)
(Title of Individual Signing Agreement)
SIGNATURE: _______________________________
DATE: _______________________________
Office of Chief Counsel, Internal Revenue Service, United States of America
(Name of Counsel Employee)
(Title of Counsel Employee Signing Agreement)
SIGNATURE: _______________________________
DATE: _______________________________

January 3, 2023

112

Bulletin No. 2023–1

Addendum: Individuals and Email Addresses Authorized
Pursuant to this Memorandum of Understanding
Authorized Person Name

Bulletin No. 2023–1

Authorized Email Address

113

Phone Number

January 3, 2023

Agreement to use encrypted email attachments
(Adobe Acrobat Pro password encryption)

.02 For requesters choosing to use encrypted email attachments with Adobe Acrobat Pro password encryption, submit the following MOU:

Agreement to Use Encrypted Email Attachments (Adobe Acrobat Pro Password Encryption)
Generally, the Office of Chief Counsel, Internal Revenue Service (Chief Counsel) communicates with taxpayers or their representatives by sending documents through the mail or via facsimile, or by telephone. In many cases communication by email is more
convenient for both the taxpayer and Chief Counsel. There are risks associated with email, such as the possibility sensitive taxpayer
information could be intercepted. If an email is intercepted, any personal information in the email could be viewed by unauthorized
persons. It is important to secure email using appropriate encryption, particularly when transmitting sensitive or confidential tax-related information. This agreement is intended to enhance the process of securely exchanging taxpayer data and other tax-related
information and increase efficiency of interaction between Chief Counsel and taxpayers or their representatives.
1. Communications
In order to communicate in a formal, efficient manner for tax issues, written communication is essential. Email is one form of written
communication; however, in order to protect sensitive information, additional safeguards are necessary for email communications
which are not generally required for paper documents. Chief Counsel and the taxpayer, by this agreement, consent to written communications being transmitted via encrypted email attachments. In order to limit access to this information, Chief Counsel and the
taxpayer agree to designate participants and provide the list of participants in an addendum to this agreement. Only individuals designated as participants by Chief Counsel and the taxpayer on that list will be included in these communications. The taxpayer will be
responsible for providing an updated list when there are changes to their designated participants.
2. Encrypted Email Attachments
Chief Counsel uses Adobe Acrobat Pro®, a commercial program, to compress and encrypt email attachments in Adobe Portable
Document Format (.pdf) that contain sensitive information. The recipient of encrypted email attachments created using this utility
may decrypt and view them by entering a password. The recipient must first install a compatible .pdf software reader with password
decryption capability. In addition to Adobe Acrobat Pro®, the Adobe Acrobat DC Reader® is a free Windows utility that enables
users to decrypt and open AES passphrase-encrypted files created by Adobe Acrobat Pro. Other compatible .pdf decryption utilities
may exist.
Acrobat Pro® only encrypts the email attachment and not the subject line nor the body of the email itself. To prevent interception and
viewing of sensitive or other confidential tax-related information by unauthorized persons, such information must not be included in
the email body or subject line.
Further information about how to encrypt email attachments with Adobe Acrobat products may be found on Adobe’s web site or at
this link: https://home.treasury.gov/how-to-encryptpassword-protect-microsoft-office-and-adobe-acrobat-pdf-documents.
3. Security
Both parties agree to work together to ensure the joint security of the information contained in the encrypted email attachment. Pursuant to this MOU, Chief Counsel certifies that its system used to transmit, store, or process data is designed, managed, and operated in a
secure manner in compliance with relevant laws, regulations, and policies. The taxpayer should also undertake steps to ensure proper
security protections are employed to transmit, receive, and store this information. By signing this agreement, the taxpayer understands that sensitive or confidential information should be sent only by encrypted email attachment in communicating with the IRS.
Even with encryption it is possible electronic communications could be intercepted. By signing this agreement, the taxpayer acknowledges that the United States Government does not guarantee the security of data transmitted electronically by email and accepts no
liability, regardless of fault, for any loss or damage sustained without negligence of United States Government employees.
4. Costs
Both parties agree to bear all of their own costs on a nonreimbursable basis in complying with this agreement.

January 3, 2023

114

Bulletin No. 2023–1

5. Timeline
This agreement is effective upon the signatures of both parties and will remain in effect for the duration of the matter in Chief Counsel, including, but not limited to such time as the matter is on appeal or pending before other United States Government agencies
such as the Department of the Treasury or Department of Justice. As a new participant is added to the MOU, they are added to the
addendum and both the MOU and the addendum remain part of the case or administrative file. If either the taxpayer or Chief Counsel
wishes to terminate this agreement before it expires, it may be done upon thirty (30) days’ advance notice.
In the event of a security incident, Chief Counsel may immediately terminate the agreement.
6 Additional Terms
Nothing in this agreement shall be construed as a waiver of any sovereign immunity of the United States Government. This agreement
is not intended to contravene in any way, the precedence or applicability of Federal law and shall be governed by and construed under
Federal law of the United States of America.
(Name of Taxpayer)
(Title of Individual Signing Agreement)
SIGNATURE: _______________________________
DATE: _______________________________
Office of Chief Counsel, Internal Revenue Service, United States of America
(Name of Counsel Employee)
(Title of Counsel Employee Signing Agreement)
SIGNATURE: _______________________________
DATE: _______________________________

Bulletin No. 2023–1

115

January 3, 2023

Addendum: Individuals and Email Addresses Authorized
Pursuant to this Memorandum of Understanding
Authorized Person Name

January 3, 2023

Authorized Email Address

116

Phone Number

Bulletin No. 2023–1

Agreement to use encrypted email attachments
(Microsoft Office 2016/365 password encryption)

.03 For requesters choosing to use encrypted email attachments with Microsoft Office 2016/365 password encryption, submit the following MOU:

Agreement to Use Encrypted Email Attachments (Microsoft Office 2016/365 Password Encryption)
Generally, the Office of Chief Counsel, Internal Revenue Service (Chief Counsel) communicates with taxpayers or their representatives by sending documents through the mail or via facsimile, or by telephone. In many cases communication by email is more
convenient for both the taxpayer and Chief Counsel. There are risks associated with email, such as the possibility sensitive taxpayer
information could be intercepted. If an email is intercepted, any personal information in the email could be viewed by unauthorized
persons. It is important to secure email using appropriate encryption, particularly when transmitting sensitive or confidential tax-related information. This agreement is intended to enhance the process of securely exchanging taxpayer data and other tax-related
information and increase efficiency of interaction between Chief Counsel and taxpayers or their representatives.
1. Communications
In order to communicate in a formal, efficient manner for tax issues, written communication is essential. Email is one form of written
communication; however, in order to protect sensitive information, additional safeguards are necessary for email communications
which are not generally required for paper documents. Chief Counsel and the taxpayer, by this agreement, consent to written communications being transmitted via encrypted email attachments. In order to limit access to this information, Chief Counsel and the
taxpayer agree to designate participants and provide the list of participants in an addendum to this agreement. Only individuals designated as participants by Chief Counsel and the taxpayer on that list will be included in these communications. The taxpayer will be
responsible for providing an updated list when there are changes to their designated participants.
2. Encrypted Email Attachments
Chief Counsel uses Microsoft Office 365®, a commercial program, to compress and encrypt email attachments in Microsoft Office
formats, including Word, Excel or PowerPoint, that contain sensitive information. The recipient of encrypted email attachments created using this program may decrypt and view them by entering a password. The recipient should use Microsoft 2016® or Microsoft
Office 365® to decrypt and open encrypted Office files sent by Chief Counsel as email attachments. Older versions of Microsoft
Office may not successfully decrypt these attachments.
Microsoft Office 365 only encrypts the email attachment and not the subject line nor the body of the email itself. To prevent interception and viewing of sensitive or other confidential tax-related information by unauthorized persons, such information must not be
included in the email body or subject line.
Further information about how to encrypt email attachments with Microsoft Office products may be found on Microsoft’s web site or
at this link: https://home.treasury.gov/how-to-encryptpassword-protect-microsoft-office-and-adobe-acrobat-pdf-documents.
3. Security
Both parties agree to work together to ensure the joint security of the information contained in the encrypted email attachment. Pursuant to this MOU, Chief Counsel certifies that its system used to transmit, store, or process data is designed, managed, and operated in a
secure manner in compliance with relevant laws, regulations, and policies. The taxpayer should also undertake steps to ensure proper
security protections are employed to transmit, receive, and store this information. By signing this agreement, the taxpayer understands that sensitive or confidential information should be sent only by encrypted email attachment in communicating with the IRS.
Even with encryption it is possible electronic communications could be intercepted. By signing this agreement, the taxpayer acknowledges that the United States Government does not guarantee the security of data transmitted electronically by email and accepts no
liability, regardless of fault, for any loss or damage sustained without negligence of United States Government employees.
4. Costs
Both parties agree to bear all of their own costs on a nonreimbursable basis in complying with this agreement.

Bulletin No. 2023–1

117

January 3, 2023

5. Timeline
This agreement is effective upon the signatures of both parties and will remain in effect for the duration of the matter in Chief Counsel, including, but not limited to such time as the matter is on appeal or pending before other United States Government agencies
such as the Department of the Treasury or Department of Justice. As a new participant is added to the MOU, they are added to the
addendum and both the MOU and the addendum remain part of the case or administrative file. If either the taxpayer or Chief Counsel
wishes to terminate this agreement before it expires, it may be done upon thirty (30) days’ advance notice.
In the event of a security incident, Chief Counsel may immediately terminate the agreement.
6 Additional Terms
Nothing in this agreement shall be construed as a waiver of any sovereign immunity of the United States Government. This agreement
is not intended to contravene in any way, the precedence or applicability of Federal law and shall be governed by and construed under
Federal law of the United States of America.
(Name of Taxpayer)
(Title of Individual Signing Agreement)
SIGNATURE: _______________________________
DATE: _______________________________
Office of Chief Counsel, Internal Revenue Service, United States of America
(Name of Counsel Employee)
(Title of Counsel Employee Signing Agreement)
SIGNATURE: _______________________________
DATE: _______________________________

January 3, 2023

118

Bulletin No. 2023–1

Addendum: Individuals and Email Addresses Authorized
Pursuant to this Memorandum of Understanding
Authorized Person Name

Bulletin No. 2023–1

Authorized Email Address

119

Phone Number

January 3, 2023