Internal Revenue Bulletin 1996-1 (PDF rendition): IRS Revenue Rulings

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

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Bulletin No. 1996–1
January 2, 1996
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.
INCOME TAX
Rev. Rul. 96–1, page 7.
Valuation of a remainder interest in property transferred to
a new pooled income fund under section 642(c)(5). The
deemed rate of return computed under section 7520 of
the Code is provided for transfers in calendar year
1996 to new pooled income funds that have been in
existence for less than 3 taxable years.
EMPLOYEE PLANS
Rev. Proc. 96–4, page 94.
Rulings and determination letters; issuance procedures.
Revised procedures are provided for furnishing ruling
letters, information letters, etc., on matters relating to
sections of the Code under the jurisdiction of the
Assistant Commissioner (Employee Plans and Exempt
Organizations). Rev. Proc. 95–4 superseded.
Rev. Proc. 96–5, page 129.
Technical advice. Revised procedures are provided for
furnishing technical advice to key district directors and
chiefs, appeals offices, by the Assistant Commissioner
(Employee Plans and Exempt Organizations) regarding
issues in the employees plans areas (including actuarial
matters) and exempt organizations areas. Rev. Proc.
95–5 superseded.
Rev. Proc. 96–6, page 151.
Employee plans determination letters. Revised procedures
are provided for issuing determination letters on the
qualified status of employee plans under sections
401(a), 403(a), 409, and 4975 of the Code. Rev. Proc.
95–6 superseded.
Rev. Proc. 96–8, page 187.
User fees for employee plans and exempt organizations.
Up-to-date guidance for complying with the user fee
program of the Service as it pertains to requests for
letter rulings, determination letters, etc., on matters
under the jurisdiction of the Assistant Commissioner
(Employee Plans and Exempt Organizations) is
provided. Rev. Proc. 95–8 superseded.
EXEMPT ORGANIZATIONS
Rev. Proc. 96–4, page 94.
Rulings and determination letters; issuance procedures.
Revised procedures are provided for furnishing ruling
letters, information letters, etc., on matters relating to
sections of the Code under the jurisdiction of the
Assistant Commissioner (Employee Plans and Exempt
Organizations). Rev. Proc. 95–4 superseded.
Rev. Proc. 96–5, page 129.
Technical advice. Revised procedures are provided for
furnishing technical advice to key district directors and
chiefs, appeals offices, by the Assistant Commissioner
(Employee Plans and Exempt Organizations) regarding
issues in the employee plans areas (including acturial
matters) and exempt organizations areas. Rev. Proc.
95–5 superseded.
Rev. Proc. 96–8, page 187.
User fees for employee plans and exempt organizations.
(Continued on page 4)
Cumulative List of Actions Relating to Decisions of the Tax Court published in the Bulletin from January through December 1995 begins on page 5.
Finding List of Revenue Rulings, Revenue Procedures, Treasury Decisions, etc., published in the Bulletin from July through December 1995 begins on
page 204.
Finding List of Previously Published Items currently mentioned in the Bulletin from July through December 1995 begins on page 206.
Cumulative List of Declaratory Judgment Proceedings Under Section 7428 begins on page 201.
Index of Items Published in the Bulletin from July through December 1995 begins on page 209.

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Mission of the Service
The purpose of the Internal Revenue Service is to
collect the proper amount of tax revenue at the least
cost; serve the public by continually improving the
quality of our products and services; and perform in a
manner warranting the highest degree of public
confidence in our integrity, efficiency and fairness.
Statement of Principles
of Internal Revenue
Tax Administration
The function of the Internal Revenue Service is to
administer the Internal Revenue Code. Tax policy
for raising revenue is determined by Congress.
With this in mind, it is the duty of the Service to
carry out that policy by correctly applying the laws
enacted by Congress; to determine the reasonable
meaning of various Code provisions in light of the
Congressional purpose in enacting them; and to
perform this work in a fair and impartial manner,
with neither a government nor a taxpayer point of
view.
At the heart of administration is interpretation of the
Code. It is the responsibility of each person in the
Service, charged with the duty of interpreting the
law, to try to find the true meaning of the statutory
provision and not to adopt a strained construction in
the belief that he or she is ‘‘protecting the revenue.’’
The revenue is properly protected only when we as-
certain and apply the true meaning of the statute.
The Service also has the responsibility of applying
and administering the law in a reasonable,
practical manner. Issues should only be raised by
examining officers when they have merit, never
arbitrarily or for trading purposes. At the same
time, the examining officer should never hesitate
to raise a meritorious issue. It is also important
that care be exercised not to raise an issue or to
ask a court to adopt a position inconsistent with
an established Service position.
Administration should be both reasonable and
vigorous. It should be conducted with as little
delay as possible and with great courtesy and
considerateness. It should never try to overreach,
and should be reasonable within the bounds of law
and sound administration. It should, however, be
vigorous in requiring compliance with law and it
should be relentless in its attack on unreal tax
devices and fraud.

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Introduction
The Internal Revenue Bulletin is the authoritative
instrument of the Commissioner of Internal Revenue for
announcing official rulings and procedures of the
Internal Revenue Service and for publishing Treasury
Decisions, Executive Orders, Tax Conventions, legisla-
tion, court decisions, and other items of general
interest. It is published weekly and may be obtained
from the Superintendent of Documents on a subscrip-
tion basis. Bulletin contents of a permanent nature are
consolidated semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin
all substantive rulings necessary to promote a uniform
application of the tax laws, including all rulings that
supersede, revoke, modify, or amend any of those
previously published in the Bulletin. All published
rulings apply retroactively unless otherwise indicated.
Procedures relating solely to matters of internal
management are not published; however, statements of
internal practices and procedures that affect the rights
and duties of taxpayers are published.
Revenue rulings represent the conclusions of the
Service on the application of the law to the pivotal facts
stated in the revenue ruling. In those based on
positions taken in rulings to taxpayers or technical
advice to Service field offices, identifying details and
information of a confidential nature are deleted to
prevent unwarranted invasions of privacy and to comply
with statutory requirements.
Rulings and procedures reported in the Bulletin do not
have the force and effect of Treasury Department
Regulations, but they may be used as precedents.
Unpublished rulings will not be relied on, used, or cited
as precedents by Service personnel in the disposition of
other cases. In applying published rulings and proce-
dures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be
considered, and Service personnel and others con-
cerned are cautioned against reaching the same
conclusions in other cases unless the facts and
circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on
provisions of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows:
Subpart A, Tax Conventions, and Subpart B, Legislation
and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellanous.
To the extent practicable, pertinent cross references to
these subjects are contained in the other Parts and
Subparts. Also included in this part are Bank Secrecy
Act Administrative Rulings. Bank Secrecy Act Admin-
istrative Rulings are issued by the Department of the
Treasury’s Office of the Assistant Secretary
(Enforcement).
Part IV.—Items of General Interest.
With the exception of the Notice of Proposed Rulemak-
ing and the disbarment and suspension list included in
this part, none of these announcements are consoli-
dated in the Cumulative Bulletins.
The first Bulletin for each month includes an index for
the matters published during the preceding month.
These monthly indexes are cumulated on a quarterly
and semiannual basis, and are published in the first
Bulletin of the succeeding quarterly and semi-annual
period, respectively.
The Bulletin Index-Digest System, a research and
reference service supplementing the Bulletin, may be
obtained from the Superintendent of Documents on a
subscription basis. It consists of four Services: Service
No. 1, Income Tax; Service No. 2, Estate and Gift
Taxes; Service No. 3, Employment Taxes; Service No.
4, Excise Taxes. Each Service consists of a basic
volume and a cumulative supplement that provides (1)
finding lists of items published in the Bulletin, (2)
digests of revenue rulings, revenue procedures, and
other published items, and (3) indexes of Public Laws,
Treasury Decisions, and Tax Conventions.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, D.C. 20402.

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HIGHLIGHTS
OF THIS ISSUE—Continued
EXEMPT ORGANIZATIONS—Continued
Up-to-date guidance for complying with the user fee
program of the Service as it pertains to requests for
letter rulings, determination letters, etc., on matters
under the jurisdiction of the Assistant Commissioner
(Employee Plans and Exempt Organizations) is
provided. Rev. Proc. 95–8 superseded.
ADMINISTRATIVE
Rev. Proc. 96–1, page 8.
Letter rulings, determination letters, and information
letters issued by the Associate Chief Counsel (Domestic),
Associate Chief Counsel (Employee Benefits and Exempt
Organizations), Associate Chief Counsel (Enforcement
Litigation), and Associate Chief Counsel (International).
Revised procedures are provided for issuing letter
rulings, determination letters, and information letters
on specific issues under the jurisdiction of the
Associate Chief Counsel (Domestic), the Associate Chief
Counsel (Employee Benefits and Exempt Organiza-
tions), the Associate Chief Counsel (Enforcement
Litigation), and the Associate Chief Counsel (Interna-
tional). Rev. Proc. 95–1 superseded. Rev. Procs. 91–
22, 92–20, and 92–85 modified.
Rev. Proc. 96–2, page 60.
Technical advice to the district directors and chiefs,
appeals offices, from the Associate Chief Counsel
(Domestic), Associate Chief Counsel (Employee Benefits
and Exempt Organizations), Associate Chief Counsel
(Enforcement Litigation), and Associate Chief Counsel
(International). Revised procedures are provided for
furnishing technical advice to the district directors and
chiefs, appeals offices, in areas under the jurisdiction
of the Associate Chief Counsel (Domestic), the Associ-
ate Chief Counsel (Employee Benefits and Exempt
Organizations), the Associate Chief Counsel (Enforce-
ment Litigation), and the Associate Chief Counsel
(International). Taxpayers’ rights when technical advice
has been requested also are provided. Rev. Proc. 95–2
superseded.
Rev. Proc. 96-3, page 82.
Areas in which advance rulings will not be issued;
Associate Chief Counsel (Domestic), Associate Chief
Counsel (Employee Benefits and Exempt Organizations).
This procedure provides a revised list of those
provisions of the Code under the jurisdiction of the
Associate Chief Counsel (Domestic) and the Associate
Chief Counsel (Employee Benefits and Exempt Organi-
zations) relating to matters where the Service will not
issue advance rulings or determination letters. Rev.
Procs. 95–3 and 95–50 superseded.
Rev. Proc. 96–7, page 185.
Areas in which advance rulings will not be issued:
Associate Chief Counsel (International). This procedure
lists the subject matters under the jurisdiction of the
Associate Chief Counsel (International) in which the
Service will not issue advance letter rulings or
determination letters. Rev. Proc. 95–7 superseded.

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Cumulative List of Actions Relating to Court Decisions Published in the Internal
Revenue Bulletin from January 1, 1995 through December 31, 1995
It is the policy of the Internal
Revenue Service to announce at an
early date whether it will follow the
holdings in certain cases. An Action
on Decision is the document making
such an announcement. An Action
on Decision will be issued at the
discretion of the Service only on
unappealed issues decided adverse
to the government. Generally, an
Action on Decision is issued where
its guidance would be helpful to
Service personnel working with the
same or similar issues. Unlike a
Treasury Regulation or a Revenue
Ruling, an Action on Decision is not
an affirmative statement of Service
position. It is not intended to serve
as public guidance and may not be
cited as precedent.
Actions on Decisions shall be
relied upon within the Service only
as conclusions applying the law to
the facts in the particular case at the
time the Action on Decision was
issued. Caution should be exercised
in extending the recommendation of
the Action on Decision to similar
cases where the facts are different.
Moreover, the recommendation in
the Action on Decision may be
superseded by new legislation, re-
gulations, rulings, cases, or Actions
on Decisions.
Prior to 1991, the Service pub-
lished acquiescence or nonacquies-
cence only in certain regular Tax
Court opinions. The Service has
expanded its acquiescence program
to include other civil tax cases where
guidance is determined to be help-
ful. Accordingly, the Service now
may acquiesce or nonacquiesce in
the holdings of memorandum Tax
Court opinions, as well as those of
the United States District Courts,
Claims Court, and Circuit Courts of
Appeal. Regardless of the court de-
ciding the case, the recommendation
of any Action on Decision will be
published in the Internal Revenue
Bulletin.
The recommendation in every Ac-
tion on Decision will be summarized
as acquiescence, acquiescence in
result only, or nonacquiescence.
Both ‘‘acquiescence’’ and ‘‘acquies-
cence in result only’’ mean that the
Service accepts the holding of the
court in a case and that the Service
will follow it in disposing of cases
with the same controlling facts.
However, ‘‘acquiescence’’ indicates
neither approval nor disapproval of
the reasons assigned by the court for
its conclusions; whereas, ‘‘acquies-
cence in result only’’ indicates dis-
agreement or concern with some or
all of those reasons. Nonacquies-
cence signifies that, although no
further review was sought, the Serv-
ice does not agree with the holding
of the court and, generally, will not
follow the decision in disposing of
cases involving other taxpayers. In
reference to an opinion of a circuit
court of appeals, a nonacquiescence
indicates that the Service will not
follow the holding on a nationwide
basis. However, the Service will
recognize the precedential impact of
the opinion on cases arising within
the venue of the deciding circuit.
The announcements published in
the weekly Internal Revenue Bul-
letins are consolidated semiannually
and annually. The semiannual con-
solidation appears in the first
Bulletin for July and in the
Cumulative Bulletin for the first half of
the year, and the annual consolidation
appears in the first Bulletin for the
following January and in the Cumula-
tive Bulletin for the last half of the
year.
The Commissioner ACQUIESCE in
the following decisions:
Baker, Willard K. & Irene L.,
1
748
F.2d 1465 (11th Cir. 1984)
Kisling, Est. of,
2
32 F.3d 1222 (8th
Cir. 1994)
Louisiana Land & Exploration Co.,
3
102 T.C. 21 (1994)
National Semiconductor Corp. & Con-
solidated Subs. v. Commissioner,
4
T.C.
Memo 1994–195
Seagate Technology, Inc. & Consoli-
dated Subs.,
5
102 T.C. 149 (1994)
Taisei Fire & Marine Inc. Co., Ltd., et
al. v. Commissioner,
6
104 T.C. 535
(1995)
Trump Village v. Commissioner,
7
T.C.
Memo 1995–281
The Commissioner does NOT AC-
QUIESCE in the following decisions:
Louisiana Land & Exploration Co.,
8
90
T.C. 630 (1988)
Louisiana Land & Exploration Co.,
9
102 T.C. 21 (1994)
Milligan, Robert E., v. Commis-
sioner,
10
38 F.3d 1094 (9th Cir.
1994)
1
Acquiescence relating to whether Rev. Rul. 80–173, 1980–2 C.B. 60, should be applied retroactively to disallow a section 162(a) deduction for flight training
course expenses.
2
Acquiescence relating to whether transfers of irrevocable fractional shares in a revocable trust to donees designated by decedent within the three-year period
preceding the death of decedent are includible in decedent’s gross estate pursuant to sections 2035(d)(2) and 2038(a)(1) of the Code.
3
Acquiescence in the issue relating to whether costs related to acquiring, transporting and installing gas processing equipment and the offshore modules that house
such equipment are deductible as intangible drilling and development costs. Acquiescence in result in the issue relating to whether the Claus method used by
plaintiff to recover elemental sulphur from hydrogen sulfide produced from an oil or gas well qualified as a mining process for percentage depletion purposes.
Acquiescence ‘‘in result’’ means acceptance of the Court but disagreement with some or all the reasons assigned for the decision.
4
Acquiescence in result relating to whether (i) prices paid by petitioner’s offshore Asian subsidiaries for silicon wafers manufactured by petitioner in the U.S., and
incorporated by the former into electronic products, and (ii) the prices that petitioner paid the subsidiaries for the completed products were arm’s length.
Acquiescence ‘‘in result’’ means acceptance of the Court but disagreement with some or all the reasons assigned for the decision.
5
Acquiescence in result relating to whether certain royalties attributable to intangibles that petitioner transferred to its wholly-owned subsidiary, and the prices that
petitioner paid the subsidiary for products manufactured by the latter, were arm’s length. Acquiescence ‘‘in result’’ means acceptance of the Court but disagreement
with some or all the reasons assigned for the decision.
6
Acquiescence relating to whether four Japanese reinsurance companies have agency permanent establishments in the U.S. because their U.S. agent was not ‘‘an
agent of independent status’’ under Article 9(5) of the U.S.-Japan Tax Treaty.
7
Acquiescence relating to whether the limitations of section 277 apply to a cooperative housing corporation described in section 216, which is also subject to the
provisions of subchapter T of the Code.

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Cumulative List of Actions Relating to Court Decisions Published in the Internal
Revenue Bulletin from January 1, 1995 through December 31, 1995—Continued
Morganbesser, Marvin D., et al. v.
U.S.,
11
984 F.2d 560 (2d Cir. 1993)
Placid Oil Co. v. IRS,
12
988 F.2d 554
(5th Cir. 1993)
St. Jude Medical, Inc. v. Commis-
sioner,
13
97 T.C. 457 (1991) (8th
Cir. 1994)
Sealy Power Ltd.,
14
46 F.3d 382 (5th
Cir. 1995)
Security Bank Minnesota v. Commis-
sioner,
15
994 F.2d 432 (8th Cir.
1993)
Vulcan Materials Co. & Subsidiaries v.
Commissioner,
16
959 F.2d 973 (11th
Cir. 1992)
8
Nonacquiescence relating to whether section 613A(e)(2) of the Code eliminates percentage depletion under section 613 for nonhydrocarbon minerals produced
from an oil or gas well.
9
Nonacquiescence relating to whether all income from the sales of oil, gas and sulphur are to be combined when calculating the taxable income from the property
under section 613(a) of the Code, even though the oil and gas income is subject to a separate depletion regimen.
10
Nonacquiescence realting to whether payments to a former insurance agent, which are based on the amount of compensation during the last twelve months as an
agent, derive from a trade or business carried on by the individual, so as to be subject to tax under the Self-Employment Contributions Act (SECA).
11
Nonacquiescence relating to whether the Second Circuit Court of Appeals, in affirming the U.S. District Court for Connecticut, erred as a matter of law in
determining that a multiemployer pension trust was a labor organization exempt under section 501(c)(5) of the Code.
12
Nonacquiescence relating to whether the U.S. or the taxpayer bears the ultimate burden of proof in bankruptcy proceedings in which the taxpayer challenges a
federal income tax claim arising from the disallowance ofdeductions.
13
Nonacquiescence relating to whether section 1.861–8(e)(3) of the regulations is invalid as applied to DISC combined taxable income calculations.
14
Nonacquiescence relating to whether an electrical generating facility that produced only de minimis amounts of electricity on a sporadic basis in 1984 due to
functional deficiencies in its equipment ‘‘placed in service’’ was within the meaning of sections 46 and 167 of the Code.
15
Nonacquiescence relating to whether a cash method bank that makes short-term loans with a stated interest rate to customers in the ordinary course of its
business is subject to accrual of the interest on those loans under section 1281(a)(2) of the Code.
16
Nonacquiescence relating to whether the term ‘‘accumulated profits’’ as used in the denominator of the section 902 deemed paid credit fraction before the Tax
Reform Act of 1986 means all of the foreign corporation’s accumulated profits for the taxable year.

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Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 170.—Charitable, etc.,
Contributions and Gifts
26 CFR 1.170A–6: Charitable contributions in
trust.
During calendar year 1996, if a taxpayer
transfers property to a new pooled income fund
that has been in existence for less than 3 taxable
years, what deemed rate of return is used to
value the remainder interest? See Rev. Rul. 96–1,
below.
Section 642.—Special Rules for
Credits and Deductions
26 CFR 1.642(c)–6: Valuation of a remainder
interest in property transferred to a pooled
income fund.
(Also §§ 170, 2055, 2522, 7520; 1.170A–6,
20.2055–2, 25.2522(c)–3, 1.7520–1, 20.7520–1,
25.7520–1.)
Valuation of a remainder interest in
property transferred to a new pooled
income fund under section 642(c)(5).
The deemed rate of return computed
under section 7520 of the Code is
provided for transfers in calendar year
1996 to new pooled income funds that
have been in existence for less than 3
taxable years.
Rev. Rul. 96–1
This revenue ruling lists the calendar
year 1996 deemed rate of return com-
puted under §7520 of the Internal
Revenue Code for pooled income funds
(PIFs) described in §642(c)(5) that
have been in existence for less than 3
years immediately preceding the 1996
taxable year in which a transfer is
made to the PIF.
Under §7520, the value of annuities,
interests for life or terms of years, and
remainder or reversionary interests cre-
ated after April 30, 1989, are deter-
mined by using (1) the interest rate
(rounded to the nearest 2/10ths of 1
percent) equal to 120 percent of the
applicable federal midterm rate under
§ 1274(d)(1) for the month in which
the valuation date falls, and (2) life
contingencies in mortality tables pre-
scribed in the regulations.
Section 1.642(c)–6(e)(2) of the In-
come Tax Regulations provides that the
present value of an income interest in
property transferred to a PIF is com-
puted on the basis of life contingencies
prescribed under §20.2031–7(d)(6) of
the Estate Tax Regulations and an
interest rate equal to the highest yearly
rate of return of the PIF for the 3
taxable years immediately preceding
the taxable year in which the transfer
to the PIF is made. A deemed rate of
return must be used for any transfer to
a new PIF until the PIF has been in
existence for 3 taxable years and can
compute its highest rate of return for
the 3 taxable years immediately preced-
ing the taxable year in which the
transfer to the PIF is made. See
§ 1.642(c)–6(e)(2)(ii).
If a transfer is made to a new PIF
after April 30, 1989, the deemed rate
of return is the interest rate (rounded to
the nearest 2/10ths of 1 percent) that is
1 percent less than the highest annual
average of the monthly §7520 rates for
the 3 calendar years immediately pre-
ceding the calendar year in which the
transfer to the PIF is made. See
§ 1.642(c)–6(e)(3).
The deemed rate of return for
transfers to a new PIF during taxable
year 1996 is 7.2 percent.
The following Table lists the rate for
transfers to new PIFs in 1996 and the
rates for transfers to new PIFs in each
of the past 7 calendar years.
Rev. Rul. 96–1 Table
Deemed Rates of Return for
Transfers to New Pooled
Income Funds
Time of Transfer
Deemed
Rate of
Return
1989 (Jan.–Apr.)........9.0
1989 (May–Dec.).......9.4
1990..................9.8
1991..................9.8
1992..................9.8
1993..................9.4
1994..................8.4
1995..................6.8
1996..................7.2
DRAFTING INFORMATION
The principal author of this revenue
ruling is William L. Blodgett of the
Office of Assistant Chief Counsel
(Passthroughs and Special Industries).
For further information regarding this
revenue ruling contact Mr. Blodgett on
(202) 622-3090 (not a toll-free call).
Section 2055.—Transfers for Public,
Charitable, and Religious Uses
26 CFR 20.2055–2: Transfers not exclusively
for charitable purposes.
During calendar year 1996, if a taxpayer
transfers property to a new pooled income fund
that has been in existence for less than 3 taxable
years, what deemed rate of return is used to
value the remainder interest? See Rev. Rul. 96–1,
this page.
Section 2522.—Charitable and
Similar Gifts
26 CFR 25.2522(c)–3: Transfers not
exclusively for charitable, etc., purposes in the
case of gifts made after July 31, 1969.
During calendar year 1996, if a taxpayer
transfers property to a new pooled income fund
that has been in existence for less than 3 taxable
years, what deemed rate of return is used to
value the remainder interest? See Rev. Rul. 96–1,
this page.
Section 7520.—Valuation Tables
26 CFR 1.7520–1: Valuation of annuities,
unitrust interests, interests for life or terms of
years, and remainder or reversionary interests.
During calendar year 1996, if a taxpayer
transfers property to a new pooled income fund
that has been in existence for less than 3 taxable
years, what deemed rate of return is used to
value the remainder interest? See Rev. Rul. 96–1,
this page.
26 CFR 20.7520–1: Valuation of annuities,
unitrust interests, interests for life or term of
years, and remainder or reversionary interests.
During calendar year 1996, if a taxpayer
transfers property to a new pooled income fund
that has been in existence for less than 3 taxable
years, what deemed rate of return is used to
value the remainder interest? See Rev. Rul. 96–1,
this page.
26 CFR 25.7520–1: Valuation of annuities,
unitrust interests, interests for life or term of
years, and remainder or reversionary interests.
During calendar year 1996, if a taxpayer
transfers property to a new pooled income fund
that has been in existence for less than 3 taxable
years, what deemed rate of return is used to
value the remainder interest? See Rev. Rul. 96–1,
this page.

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Part III.Administrative, Procedural, and Miscellaneous
26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 96–1
TABLE OF CONTENTS
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
p. 12
SECTION 2. IN WHAT FORM IS
GUIDANCE PROVIDED BY THE
OFFICES OF ASSOCIATE CHIEF
COUNSEL (DOMESTIC), ASSOCIATE
CHIEF COUNSEL (EMPLOYEE
BENEFITS AND EXEMPT
ORGANIZATIONS), ASSOCIATE
CHIEF COUNSEL (ENFORCEMENT
LITIGATION), AND ASSOCIATE
CHIEF COUNSEL
(INTERNATIONAL)?
p. 12.01Letter ruling
.02Closing agreement
.03Determination letter
.04Information letter
.05Revenue ruling
.06Oral guidance
(1)No oral rulings, and no written rulings in response to oral requests
(2)Discussion possible on substantive issues
SECTION 3. ON WHAT ISSUES
MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER
THIS PROCEDURE?
p. 14.01Issues under the jurisdiction of the Associate Chief Counsel (Domestic)
(1)Issues under the Assistant Chief Counsel (Corporate)
(2)Issues under the Assistant Chief Counsel (Financial Institutions and
Products)
(3)Issues under the Assistant Chief Counsel (Income Tax and
Accounting)
(4)Issues under the Assistant Chief Counsel (Passthroughs and Special
Industries)
.02Issues under the jurisdiction of the Associate Chief Counsel (Employee
Benefits and Exempt Organizations)
.03Issues under the jurisdiction of the Associate Chief Counsel (Enforce-
ment Litigation)
.04 Issues under the jurisdiction of the Associate Chief Counsel
(International)
SECTION 4. ON WHAT ISSUES
MUST WRITTEN GUIDANCE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
p. 15.01Alcohol, tobacco, and firearms taxes
.02Employee plans and exempt organizations
SECTION 5. UNDER WHAT
CIRCUMSTANCES DOES THE
NATIONAL OFFICE ISSUE
LETTER RULINGS?
p. 15.01In income and gift tax matters
.02Request for extension of time for making an election or for other relief
under §301.9100–1 of the Procedure and Administration Regulations
.03Determinations under §999(d) of the Internal Revenue Code
.04In matters involving §367
.05In estate tax matters
.06In matters involving additional estate tax under §2032A(c)
.07In matters involving qualified domestic trusts under §2056A
.08In generation-skipping transfer tax matters
.09In employment and excise tax matters
.10In administrative provisions matters

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.11Generally not to business associations or groups
.12Generally not to foreign governments
.13Generally not on federal tax consequences of proposed legislation
.14Issuance of a letter ruling before the adoption of regulations
SECTION 6. UNDER WHAT
CIRCUMSTANCES DO DISTRICT
DIRECTORS ISSUE
DETERMINATION LETTERS?
p. 19.01In income and gift tax matters
.02In estate tax matters
.03In generation-skipping transfer tax matters
.04In employment and excise tax matters
.05Circumstances under which determination letters are not issued by
district director
.06Requests concerning income, estate, or gift tax returns
.07Attach a copy of determination letter to taxpayer’s return
.08Review of determination letters
SECTION 7. UNDER WHAT
CIRCUMSTANCES DOES THE
SERVICE HAVE DISCRETION TO
ISSUE LETTER RULINGS AND
DETERMINATION LETTERS?
p. 21.01Ordinarily not in certain areas because of factual nature of the problem
.02Not on alternative plans or hypothetical situations
.03Ordinarily not on part of an integrated transaction
.04On constructive sales price under §4216(b) or §4218(c)
SECTION 8. WHAT ARE THE
GENERAL INSTRUCTIONS FOR
REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS?
p. 21.01Certain information required in all requests
(1)Complete statement of facts and other information
(2)Copies of all contracts, wills, deeds, agreements, instruments, and
other documents
(3)Analysis of material facts
(4)Statement regarding whether same issue is in an earlier return
(5)Statement regarding whether same or similar issue was previously
ruled on or requested, or is currently pending
(6)Statement of supporting authorities
(7)Statement of contrary authorities
(8)Statement identifying pending legislation
(9)Statement identifying information to be deleted from copy of letter
ruling or determination letter for public inspection
(10)Signature by taxpayer or authorized representative
(11)Authorized representatives
(12)Power of attorney and declaration of representative
(13)Penalties of perjury statement
(14)Number of copies of request to be submitted
(15)Sample format for a letter ruling request
(16)Checklist for letter ruling requests
.02Additional information required in certain circumstances
(1)To request separate letter rulings for multiple issues in a single
situation
(2)To designate recipient of original or copy of letter ruling or
determination letter
(3)To request a particular conclusion on a proposed transaction

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(4)To request expeditious handling
(5)To receive a letter ruling or submit a request for a letter ruling by
facsimile transmission
(6)To request a conference
.03Address to send the request
(1)Requests for letter rulings
(2)Requests for determination letters
.04Pending letter ruling requests
.05When to attach letter ruling to return
.06How to check on status of request
.07Request may be withdrawn or national office may decline to issue letter
ruling
.08Compliance with Treasury Department Circular No. 230
SECTION 9. WHAT OTHER
CHECKLISTS, GUIDELINE REVENUE
PROCEDURES, SAFE HARBOR
REVENUE PROCEDURES, AND
AUTOMATIC CHANGE REVENUE
PROCEDURES AND NOTICES
APPLY TO CERTAIN REQUESTS?
p. 30.01Checklists and guideline revenue procedures
.02Safe harbor revenue procedures
.03Automatic change revenue procedures and notices
SECTION 10. HOW DOES THE
NATIONAL OFFICE HANDLE
LETTER RULING REQUESTS?
p. 34.01Controls request and refers it to appropriate Assistant Chief Counsel or
to the Office of Associate Chief Counsel (International)
.02Branch representative contacts taxpayer within 21 days
.03Notifies taxpayer if any issues have been referred to other branches
.04Determines if transaction can be modified to obtain favorable letter
ruling
.05Is not bound by informal opinion expressed
.06Tells taxpayer if request lacks essential information during initial contact
.07Requires prompt submission of additional information requested after
initial contact
.08Schedules a conference if requested by taxpayer
.09Permits taxpayer one conference of right
.10Disallows verbatim recording of conferences
.11Makes tentative recommendations on substantive issues
.12May offer additional conferences
.13Requires written confirmation of information presented at conference
.14May schedule pre-submission conference
.15May, under limited circumstances, schedule a conference to be held by
telephone
.16May request draft of proposed letter ruling near the completion of the
ruling process
.17Advises the taxpayer of conclusions and, if the Service will rule
adversely, offers the taxpayer the opportunity to withdraw the letter
ruling request
SECTION 11. WHAT EFFECT WILL
A LETTER RULING HAVE?
p. 39.01May be relied on subject to limitations
.02Will not apply to another taxpayer
.03Will be used by a district director in examining the taxpayer’s return

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.04May be revoked or modified if found to be in error
.05Not generally revoked or modified retroactively
.06Retroactive effect of revocation or modification applied to a particular
transaction
.07Retroactive effect of revocation or modification applied to a continuing
action or series of actions
.08Generally not retroactively revoked or modified if related to sale or
lease subject to excise tax
.09May be retroactively revoked or modified when transaction is entered
into before the issuance of the letter ruling
.10May be retroactively revoked or modified when transaction is entered
into after a change in material facts
.11Taxpayer may request that retroactivity be limited
(1)Request for relief under §7805(b) must be made in required format
(2)Taxpayer may request a conference on application of §7805(b)
SECTION 12. WHAT EFFECT WILL
A DETERMINATION LETTER HAVE?
p. 42.01Has same effect as a letter ruling
.02Taxpayer may request that retroactive effect of revocation or
modification be limited
(1)Request for relief under §7805(b) must be made in required format
(2)Taxpayer may request a conference on application of §7805(b)
SECTION 13. UNDER WHAT
CIRCUMSTANCES ARE MATTERS
REFERRED BETWEEN A DISTRICT
OFFICE AND THE NATIONAL
OFFICE?
p. 42.01Requests for determination letters
.02No-rule areas
.03Requests for letter rulings
SECTION 14. WHAT ARE THE
USER FEE REQUIREMENTS FOR
REQUESTS FOR LETTER RULINGS
AND DETERMINATION LETTERS?
p. 43.01Legislation authorizing user fees
.02Requests to which a user fee applies
.03Requests to which a user fee does not apply
.04Exemptions from the user fee requirements
.05Fee schedule
.06Applicable user fee for a request involving multiple offices, fee
categories, issues, transactions, or entities
.07Method of payment
.08Effect of nonpayment or payment of incorrect amount
.09Refunds of user fee
.10Request for reconsideration of user fee
SECTION 15. WHAT SIGNIFICANT
CHANGES HAVE BEEN MADE TO
REV. PROC. 95–1?
p. 46
SECTION 16. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
p. 47
SECTION 17. WHAT IS THE
EFFECTIVE DATE OF THIS
REVENUE PROCEDURE?
p. 47
DRAFTING INFORMATIONp. 48

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INDEXp. 49
APPENDIX A—SCHEDULE OF
USER FEES
p. 52
APPENDIX B—SAMPLE FORMAT
FOR A LETTER RULING REQUEST
p. 55
APPENDIX C—CHECKLIST FOR A
LETTER RULING REQUEST
p. 57
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
This revenue procedure explains how the Internal Revenue Service gives guidance
to taxpayers on issues under the jurisdiction of the Associate Chief Counsel
(Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organiza-
tions), the Associate Chief Counsel (Enforcement Litigation), and the Associate Chief
Counsel (International). It explains the kinds of guidance and the manner in which
guidance is requested by taxpayers and provided by the Service. A sample format of a
request for a letter ruling is provided in Appendix B.
Description of terms used in
this revenue procedure
For purposes of this revenue procedure—
(1)any reference to district director or district office includes their respective
offices or, when appropriate, the Assistant Commissioner (International);
(2)the word ‘‘taxpayer’’ includes all persons subject to any provision of the
Internal Revenue Code (including issuers of §103 obligations) and, when appropriate,
their representatives; and
(3)the word ‘‘national office’’ refers to the Office of Associate Chief Counsel
(Domestic), the Office of Associate Chief Counsel (Employee Benefits and Exempt
Organizations), the Office of Associate Chief Counsel (Enforcement Litigation), or the
Office of Associate Chief Counsel (International), as appropriate.
Updated annuallyThe revenue procedure is updated annually as the first revenue procedure of the
year, but may be modified or amplified during the year.
SECTION 2. IN WHAT FORM IS
GUIDANCE PROVIDED BY THE
OFFICES OF ASSOCIATE CHIEF
COUNSEL (DOMESTIC), ASSOCIATE
CHIEF COUNSEL (EMPLOYEE
BENEFITS AND EXEMPT
ORGANIZATIONS), ASSOCIATE
CHIEF COUNSEL (ENFORCEMENT
LITIGATION), AND ASSOCIATE
CHIEF COUNSEL
(INTERNATIONAL)?
The Service provides guidance in the form of letter rulings, closing agreements,
determination letters, information letters, revenue rulings, and oral advice.
Letter ruling.01A ‘‘letter ruling’’ is a written statement issued to a taxpayer by the national
office that interprets and applies the tax laws to the taxpayer’s specific set of facts. A
letter ruling includes the written permission or denial of permission by the national
office to a request for a change in a taxpayer’s accounting method or accounting
period. Once issued, a letter ruling may be revoked or modified for any number of
reasons, as explained in section 11 of this revenue procedure, unless it is accompanied
by a ‘‘closing agreement.’’
Closing agreement.02A 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 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 the
matter permanently and conclusively closed or when a taxpayer can show that there
are good reasons for an agreement and that making the agreement will not prejudice
the interests of the Government. In appropriate cases, a taxpayer may be asked to
enter into a closing agreement as a condition to the issuance of a letter ruling.

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If, in a single case, a closing agreement is requested for each person in a class of
taxpayers, separate agreements are entered into only if the class consists of 25 or
fewer taxpayers. However, if the issue and holding are identical for the class and there
are more than 25 taxpayers in the class, a ‘‘mass closing agreement’’ will be entered
into with the taxpayer who is authorized by the others to represent the class.
Determination letter.03A ‘‘determination letter’’ is a written statement issued by a district director that
applies the principles and precedents previously announced by the national office to a
specific set of facts. It is issued only when a determination can be made based on
clearly established rules in the statute, a tax treaty, or the regulations, or based on a
conclusion in a revenue ruling, opinion, or court decision published in the Internal
Revenue Bulletin that specifically answers the questions presented.
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. 91–23, 1991–1 C.B. 534, as amplified by Rev. Proc. 91–22, 1991–1 C.B.
526, and as clarified by Rev. Proc. 91–26, 1991–1 C.B. 543.
Information letter.04An ‘‘information letter’’ is a statement issued either by the national office or by
a district director. It 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 thinks general information will help the taxpayer. The
taxpayer should provide a daytime telephone number with the taxpayer’s request for
an information letter. An information letter is advisory only and has no binding effect
on the Service.
Revenue ruling.05A ‘‘revenue ruling’’ is an interpretation by the Service that has been published
in the Internal Revenue Bulletin. It is the conclusion of the Service on how the law is
applied to a specific set of facts. Revenue rulings are issued only by the national
office and are published for the information and guidance of taxpayers, Service
personnel, and other interested parties.
Because each revenue ruling represents the conclusion of the Service regarding the
application of law to the entire statement of facts involved, taxpayers, Service
personnel, and other concerned parties are cautioned against reaching the same
conclusion in other cases unless the facts and circumstances are substantially the
same. They should consider the effect of subsequent legislation, regulations, court
decisions, revenue rulings, notices, and announcements. 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.
Oral guidance.06
(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.
However, Service employees ordinarily will discuss with taxpayers or their
representatives inquiries regarding whether the Service will rule on particular issues
and questions relating to procedural matters about submitting 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, substantive issues also may be
discussed. However, such a discussion will not be binding on the Service and cannot
be relied upon as a basis for obtaining retroactive relief under the provisions of
§ 7805(b).
Substantive tax issues involving the taxpayer that are under examination, in appeals,
or in litigation will not be discussed by Service employees not directly involved in the
examination, appeal, or litigation of the issues unless the discussion is coordinated
with those Service employees who are directly involved in the examination, appeal, or
litigation of the issues. The taxpayer or the taxpayer’s representative ordinarily will be
asked whether the oral request for guidance or information relates to a matter pending
before another office of the Service.

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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 district office or service center when preparing a return or report. Oral guidance
is advisory only, and the Service is not bound to recognize it, for example, in the
examination of the taxpayer’s return.
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 confirmation of the
substance of the letter.
SECTION 3. ON WHAT ISSUES
MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER
THIS PROCEDURE?
Taxpayers may request letter rulings, information letters, and closing agreements
under this revenue procedure on issues within the jurisdiction of the Associate Chief
Counsel (Domestic), the Associate Chief Counsel (Employee Benefits and Exempt
Organizations), the Associate Chief Counsel (Enforcement Litigation), and the
Associate Chief Counsel (International). The national office issues letter rulings to
answer written inquiries of individuals and organizations about their status for tax
purposes and the tax effects of their acts or transactions when appropriate in the
interest of sound tax administration.
Taxpayers also may request determination letters within the jurisdiction of the
appropriate district director offices that relate to the Code sections under the
jurisdiction of the Associate Chief Counsel (Domestic), the Associate Chief Counsel
(Employee Benefits and Exempt Organizations), the Associate Chief Counsel
(Enforcement Litigation), or the Associate Chief Counsel (International).
Issues under the jurisdiction of
the Associate Chief Counsel
(Domestic)
.01Issues under the jurisdiction of the Associate Chief Counsel (Domestic) include
all issues under the jurisdiction of the various Assistant Chief Counsels as explained
below.
Issues under the Assistant Chief
Counsel (Corporate)
(1)Issues under the Assistant Chief Counsel (Corporate) include those that involve
consolidated returns, corporate acquisitions, reorganizations, liquidations, redemptions,
spinoffs, transfers to controlled corporations, distributions to shareholders, corporate
bankruptcies, the effect of certain ownership changes on net operating loss carryovers
and other tax attributes, debt vs. equity determinations, allocation of income and
deductions among taxpayers, acquisitions made to evade or avoid income tax, and
certain earnings and profits questions.
Issues under the Assistant Chief
Counsel (Financial Institutions
and Products)
(2)Issues under the Assistant Chief Counsel (Financial Institutions and Products)
include those that involve income taxes and accounting method changes of banks,
savings and loan associations, real estate investment trusts (REITs), regulated
investment companies (RICs), real estate mortgage investment conduits (REMICs),
tax-exempt obligations, mortgage credit certificates (MCCs), insurance companies and
products, and financial products.
Issues under the Assistant Chief
Counsel (Income Tax and
Accounting)
(3)Issues under the Assistant 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, inventories, the alternative minimum tax, accounting method
changes for these and other miscellaneous issues, various administrative provisions,
and accounting periods.
Issues under the Assistant Chief
Counsel (Passthroughs and
Special Industries)
(4)Issues under the Assistant 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, gift, generation-skipping transfer,
and certain excise taxes; amortization, depreciation, depletion, and other engineering
issues; accounting method changes for depreciation and amortization; cooperative
housing corporations; farmers’ cooperatives (under §521); the low-income housing,
disabled access, and qualified electric vehicle credits; research and experimental
expenditures; shipowners’ protection and indemnity associations (under §526); and
certain homeowners associations (under §528).
Issues under the jurisdiction of
the Associate Chief Counsel
(Employee Benefits and Exempt
Organizations)
.02Issues under the jurisdiction of the Associate Chief Counsel (Employee Benefits
and Exempt Organizations) include those that involve income tax and other tax
aspects of executive compensation and employee benefit programs (other than those
within the jurisdiction of the Assistant Commissioner (Employee Plans and Exempt
Organizations)), employment taxes, and taxes on self-employment income.

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Issues under the jurisdiction of
the Associate Chief Counsel
(Enforcement Litigation)
.03Issues under the jurisdiction of the Associate Chief Counsel (Enforcement
Litigation) include issues only under the jurisdiction of the Assistant Chief Counsel
(General Litigation). Issues under the Assistant Chief Counsel (General Litigation)
include those that involve collection.
Issues under the jurisdiction of
the Associate Chief Counsel
(International)
.04Issues 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 without the United States; subpart F
questions; domestic international sales corporations (DISCs); foreign sales corpora-
tions (FSCs); international boycott determinations; treatment of certain passive foreign
investment companies; and income affected by treaty.
For the procedures to obtain advance pricing agreements under §482, see Rev.
Proc. 91–22, 1991–1 C.B. 526, as corrected by Rev. Proc. 91–22A, 1991–1 C.B. 534,
and as modified by Rev. Proc. 96–1 (this revenue procedure) and Rev. Proc. 96–8,
this Bulletin.
For the procedures concerning competent authority relief arising under the
application and interpretation of tax treaties between the United States and other
countries, see Rev. Proc. 91–23. However, competent authority consideration for an
advance pricing agreement should be requested under Rev. Proc. 91–22.
SECTION 4. ON WHAT ISSUES
MUST WRITTEN GUIDANCE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
Alcohol, tobacco, and firearms
taxes
.01The procedures for obtaining letter rulings, etc., that apply to federal alcohol,
tobacco, and firearms taxes under subtitle E of the Code are under the jurisdiction of
the Bureau of Alcohol, Tobacco and Firearms. (See 26 C.F.R. §601.328 (1995)).
Employee plans and exempt
organizations
.02The procedures for obtaining letter rulings, determination letters, etc., on
employee plans and exempt organizations are under the jurisdiction of the Assistant
Commissioner (Employee Plans and Exempt Organizations). See Rev. Proc. 96–4, this
Bulletin. See also Rev. Proc. 96–6, this Bulletin, for 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).
For the user fee requirements applicable to requests for letter rulings, determination
letters, etc., under the jurisdiction of the Assistant Commissioner (Employee Plans and
Exempt Organizations), see Rev. Proc. 96–8.
SECTION 5. UNDER WHAT
CIRCUMSTANCES DOES THE
NATIONAL OFFICE ISSUE
LETTER RULINGS?
In income and gift tax matters.01In income and gift tax matters, the national office generally issues a letter
ruling on a proposed transaction and on a completed transaction if the letter ruling
request is submitted before the return is filed for the year in which the transaction that
is the subject of the request was completed.
(1)Circumstances under which a letter ruling is not ordinarily issued. The
national office ordinarily does not issue a letter ruling if, at the time the letter ruling
is requested, the identical issue is involved in the taxpayer’s return for an earlier
period and that issue—
(a)is being examined by a district director;
(b)is being considered by an appeals office;
(c)is pending in litigation in a case involving the taxpayer or a related taxpayer;
(d)has been examined by a district director or considered by an appeals office and
the statutory period of limitations has not expired for assessment or for filing a claim
for refund or credit of tax; or
(e)has been examined by a district director or considered by an appeals office and
a closing agreement covering the issue or liability has not been entered into by a
district director or by an appeals office.

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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, the national 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 district
director. See section 8.04 of this revenue procedure. However, even if an examination
has begun, the national office ordinarily will issue the letter ruling if the district
director agrees, by memorandum, to the issuance of the letter ruling.
(2)No letter ruling on a property conversion after return filed. The national office
does 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
return for the taxable year in which the property was converted. However, the district
director may issue a determination letter in this case. See section 6.01 of this revenue
procedure.
(3)Entity classifications. The national office generally does not issue a letter ruling
on the classification of an organization if a return has been filed for the organization
for an earlier period. However, the national office will consider letter ruling requests
concerning the classification of—
(a)an existing organization as a partnership. See Rev. Proc. 92–35, 1992–1 C.B.
790, as amplified by Rev. Proc. 94–46, 1994–2 C.B. 688; Rev. Proc. 89–12, 1989–1
C.B. 798, as supplemented by Rev. Proc. 92–33, 1992–1 C.B. 782, as modified by
Rev. Proc. 95–10, 1995–1 C.B. 501, and as amplified by Rev. Proc. 94–46 and Rev.
Proc. 91–13, 1991–1 C.B. 477 (checklist questionnaire); and Rev. Proc. 86–12, 1986–
1 C.B. 534; or
(b)a domestic or foreign limited liability company as a partnership for federal tax
purposes. See Rev. Proc. 95–10.
Request for extension of time
for making an election or for
other relief under §301.9100–1
of the Procedure and
Administration Regulations
.02The national office will consider a request for an extension of time for making
an election or other application for relief under §301.9100–1 of the Procedure and
Administration Regulations. Even if submitted after the return covering the issue
presented in the §301.9100–1 request has been filed and even if submitted after an
examination of the return has begun or after the issues in the return are being
considered by an appeals office, a §301.9100–1 request is a letter ruling request.
Therefore, the §301.9100–1 request should be submitted pursuant to this revenue
procedure.
However, an election made pursuant to section 4 of Rev. Proc. 92–85, 1992–2 C.B.
490, as modified by Rev. Proc. 96–1 (this revenue procedure), and Rev. Proc. 93–28,
1993–2 C.B. 344, is not a letter ruling request and does not require payment of any
user fee. See section 14.03(1) of this revenue procedure. Such an election pertains to
an automatic extension of time under §301.9100–1.
(1)Format of request. A §301.9100–1 request (other than an election made
pursuant to section 4 of Rev. Proc. 92–85) must be in the general form of, and meet
the general requirements for, a letter ruling request. These requirements are given in
section 8 of this revenue procedure. In addition, the §301.9100–1 request must—
(a)include the information required by Rev. Proc. 92–85; and
(b)state whether the taxpayer’s return covering the issue presented in the
§ 301.9100–1 request is being examined by a district director or whether the issues in
the return are being considered by an appeals office.
(2)Statuate of limitations. The running of any applicable period of limitations is
not suspended for the period during which a §301.9100–1 request has been filed. If
the period of limitations on assessment under §6501(a) for the year for which a
timely filed election would have been made or for any affected succeeding year will
expire before receipt of a §301.9100–1 letter ruling, the Service ordinarily will not
issue a §301.9100–1 ruling. See section 5.02(2) of Rev. Proc. 92–85. Therefore, the
taxpayer must secure a consent under §6501(c)(4) to extend the period of limitations
on assessment. Note that the filing of a claim for refund under §6511 does not extend
the period of limitations on assessment. If §301.9100–1 relief is granted, the Service
may require the taxpayer to consent to an extension of the period of limitations on
assessment. See section 8.02 of Rev. Proc. 92–85.
(3)Taxpayer must notify national office if examination of return begins while
request is pending. If an examination of any return covering the issue presented in the
§ 301.9100–1 request is started while a §301.9100–1 request is pending, the taxpayer
must notify the national office. See section 8.04 of this revenue procedure.

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(4)National office will notify district office or appeals office of §301.9100–1
request if return is being examined or is being considered by an appeals office. If
the taxpayer’s return covering the issue presented in the §301.9100–1 request is being
examined by a district director or considered by an appeals office, the national office
will notify the appropriate district office or appeals office that a §301.9100–1 request
has been submitted to the national office. The examining officer or the appeals officer
is not authorized to deny consideration of a §301.9100–1 request. The letter ruling
will be mailed to the taxpayer and a copy will be sent to the appropriate district office
or appeals office.
Determinations under §999(d)
of the Internal Revenue Code
.03Under Rev. Proc. 77–9, 1977–1 C.B. 542, the Office of Associate Chief
Counsel (International) issues determinations under §999(d) that may deny certain
benefits of the foreign tax credit, deferral of earnings of foreign subsidiaries and
domestic international sales corporations (DISCs), and tax exemption for foreign trade
income of a foreign sales corporation or a small foreign sales corporation (FSC or
small FSC) to a person, if that person, a member of a controlled group (within the
meaning of §993(a)(3)) that includes the person, or a foreign corporation of which a
member of the controlled group is a United States shareholder, agrees to participate
in, or cooperate with, an international boycott. Requests for determinations under Rev.
Proc. 77–9 are letter ruling requests and, therefore, should be submitted to the
Associate Chief Counsel (International) pursuant to this revenue procedure.
In matters involving §367.04Unless the issue is covered by section 7 of this revenue procedure, the Office
of 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 Office of Associate
Chief Counsel (International) will determine the §367 consequences of a transaction
based on the taxpayer’s characterization of the transaction but will indicate in the
letter ruling that it expresses no opinion as to the characterization of the transaction
under the reorganization. However, the Office of Associate Chief Counsel
(International) may decline to issue a §367 ruling in situations in which the taxpayer
inappropriately characterizes the transaction under the reorganization provisions.
In estate tax matters.05In general, the national office issues prospective letter rulings on transactions
affecting the estate tax on the prospective estate of a living person and affecting the
estate tax on the estate of a decedent before the decedent’s estate tax return is filed.
The national office will not issue letter rulings for prospective estates on computations
of tax, actuarial factors, and factual matters.
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
national 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 national 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 national office
that the return has been filed. See section 8.04 of this revenue procedure. The national
office will make every effort to issue the letter ruling within 3 months of the date the
return was filed.
If the letter ruling cannot be issued within that 3-month period, the national office
will notify the district director having jurisdiction over the return, who may, by
memorandum to the national office, grant an additional period for the issuance of the
letter ruling.
In matters involving additional
estate tax under §2032A(c)
.06In matters involving additional estate tax under §2032A(c), the national office
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
.07In matters involving qualified domestic trusts under §2056A, the national
office issues letter rulings on proposed transactions and on completed transactions that
occurred before the return is filed.
In generation-skipping transfer
tax matters
.08In general, the national office 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,

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letter rulings are issued either before or after the trust or trust equivalent has been
established. The national office will issue letter rulings on the application of the
effective date rules for generation-skipping transfer tax (§1433 of the Tax Reform
Act of 1986, 1986–3 (Vol. 1) C.B. 1, 648) to wills, trusts, and trust equivalents in
existence on October 22, 1986, and to generation-skipping transfers taking place on or
before October 22, 1986.
In employment and excise
tax matters
.09In employment and excise tax matters, the national office issues letter rulings
on proposed transactions and on completed transactions either before or after the
return is filed for those transactions. Requests regarding employment status (employer/
employee relationship) from federal agencies and instrumentalities should be
submitted directly to the national office. Requests from other taxpayers must first be
submitted to the taxpayer’s district office. See section 6.04 of this revenue procedure.
Generally, the employer is the taxpayer and requests the letter ruling. However, if the
worker asks for the letter ruling, both the worker and the employer are considered to
be the taxpayer and both are entitled to the letter ruling.
The national office usually will not issue a letter ruling if, at the time the letter
ruling is requested, the identical issue is involved in the taxpayer’s return for an
earlier period and that issue—
(1)is being examined by a district director;
(2)is being considered by an appeals office;
(3)is pending in litigation in a case involving the taxpayer or a related taxpayer;
(4)has been examined by a district director or considered by an appeals office and
the statutory period of limitations has not expired for assessment or for filing a claim
for refund or credit of tax; or
(5)has been examined by a district director or considered by an appeals office and
a closing agreement covering the issue or liability has not been entered into by a
district director or by an appeals office.
If a return involving an issue for a particular year is filed while a request for a
letter ruling on that issue is pending, the national office will issue the letter ruling un-
less it is notified by the taxpayer or otherwise learns that an examination of that issue
or an examination of the identical issue on an earlier year’s return has been started by
a district director. See section 8.04 of this revenue procedure. However, even if an
examination has begun, the national office ordinarily will issue the letter ruling if the
district director agrees, by memorandum, to the issuance of the letter ruling.
In administrative provisions
matters
.10
(1)In general. The national office issues letter rulings on matters arising under the
Code and related statutes and regulations that involve—
(a)the time, place, manner, and procedures for reporting and paying taxes;
(b)the assessment and collection of taxes (including interest and penalties);
(c)the abatement, credit, or refund of an overassessment or overpayment of tax; or
(d)the filing of information returns.
(2)Circumstances under which a letter ruling is not ordinarily issued. The
national office ordinarily does not issue a letter ruling if, at the time the letter ruling
is requested, the identical issue is involved in the taxpayer’s return for an earlier
period and that issue—
(a)is being examined by a district director;
(b)is being considered by an appeals office;
(c)is pending in litigation in a case involving the taxpayer or a related taxpayer;
(d)has been examined by a district director or considered by an appeals office and
the statutory period of limitations has not expired for assessment or for filing a claim
for refund or credit of tax; or
(e)has been examined by a district director or considered by an appeals office and
a closing agreement covering the issue or liability has not been entered into by a
district director or appeals office.

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If a return involving an issue for a particular year is filed while a request for a
letter ruling on that issue is pending, the national office will issue the letter ruling
unless it is notified by the taxpayer or otherwise learns that an examination of that
issue or an examination of the identical issue on an earlier year’s return has been
started by a district director. See section 8.04 of this revenue procedure. But, even if
an examination has begun, the national office ordinarily will issue the letter ruling if
the district director agrees, by memorandum, to the issuance of the letter ruling.
Generally not to business
associations or groups
.11The national office does not issue letter rulings to business, trade, or industrial
associations or to similar groups concerning the application of the tax laws to
members of the group. But groups and associations may submit suggestions of generic
issues that would be appropriately addressed in revenue rulings. See Rev. Proc. 89–14,
which states the objectives of and standards for the publication of revenue rulings and
revenue procedures in the Internal Revenue Bulletin.
The national office, however, may issue letter rulings to groups or associations on
their own tax status or liability if the request meets the requirements of this revenue
procedure.
Generally not to foreign
governments
.12The national office does not issue letter rulings to foreign governments or their
political subdivisions about the U.S. tax effects of their laws. The national office also
does 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 12.02 of
Rev. Proc. 91–23, 1991–1 C.B. at 542. However, the national office will continue to
exchange correspondence with treaty partners pursuant to the consultation provisions
in tax treaties. In addition, the national office 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.
Generally not on federal tax
consequences of proposed
legislation
.13The national office does not issue letter rulings on a matter involving the
federal tax consequences of any proposed federal, state, local, municipal, or foreign
legislation. The national office, however, may provide general information in response
to an inquiry.
Issuance of a letter ruling
before the adoption of
regulations
.14Unless the issue is covered by section 7 of this revenue procedure, or by Rev.
Proc. 96–3, this Bulletin, or Rev. Proc. 96–7, this Bulletin, a letter ruling may be
issued before the adoption of regulations (either temporary or final) that interpret the
provisions of any act 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 to the facts or for
which the answer seems reasonably certain but not entirely free from doubt, a letter
ruling will be issued.
(2)Answer is not reasonably certain. The Service will consider all letter ruling
requests and use its best efforts to issue a letter ruling even if the answer does not
seem reasonably certain where the issuance of a letter ruling is in the best interests of
tax administration.
(3)Issue cannot be readily resolved before regulations are issued. A letter ruling
will not be issued if the letter ruling request presents an issue that cannot be readily
resolved before regulations are issued. However, when the Service has closed a
regulations project that might have answered the issue or decides not to open a
regulations project, the appropriate branch will consider all letter ruling requests
unless the issue is covered by section 7 of this revenue procedure, or by Rev. Proc.
96–3 or Rev. Proc. 96–7.
SECTION 6. UNDER WHAT
CIRCUMSTANCES DO DISTRICT
DIRECTORS ISSUE
DETERMINATION LETTERS?
District directors issue determination letters only if the question presented is
specifically answered by a statute, tax treaty, or regulation, or by a conclusion stated
in a revenue ruling, opinion, or court decision published in the Internal Revenue
Bulletin.
In income and gift tax matters.01In income and gift tax matters, district 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.

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Normally, district directors do not issue determination letters on the tax
consequences of proposed transactions. However, a district director may issue a
determination letter on the replacement, even though not yet made, of involuntarily
converted property under §1033, if the taxpayer has filed an income tax return for the
year in which the property was involuntarily converted.
In estate tax matters.02In estate tax matters, district directors issue determination letters in response to
written requests affecting the estate tax returns over which the district directors 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
.03In generation-skipping transfer tax matters, district directors issue determination
letters in response to written requests affecting the generation-skipping transfer tax
returns over which the district directors 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
.04In employment and excise tax matters, district directors issue determination
letters in response to written requests from taxpayers on completed transactions over
which they have examination jurisdiction.
Requests for a determination of employment status (Form SS–8) from taxpayers
(other than federal agencies and instrumentalities) must be submitted to the district
office where the taxpayer resides and not directly to the national office. See also
section 5.09 of this revenue procedure.
Circumstances under which
determination letters are not
issued by district director
.05A district director will not issue a determination letter in response to any
request if—
(1)it appears that the taxpayer has directed a similar inquiry to the national office;
(2)the same issue involving the same taxpayer or a related taxpayer is pending in a
case in litigation or before an appeals office;
(3)the determination letter is requested by an industry, trade association, or similar
group; or
(4)the request involves an industry-wide problem.
Under no circumstances will a district 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 district director has or will have examination jurisdiction.
A district director will not issue a determination letter on an employment tax
question if the specific question for the same taxpayer or a related taxpayer has been
or is being considered by the Central Office of the Social Security Administration or
the Railroad Retirement Board. A district director also will not issue a determination
letter on determining constructive sales price under §4216(b) or §4218(c), which
deal with special provisions applicable to the manufacturer’s excise tax. The national
office, however, will issue letter rulings in this area. See sections 6.04 and 7.04 of this
revenue procedure.
Requests concerning income,
estate, or gift tax returns
.06A request received by a district 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.
Attach a copy of determination
letter to taxpayer’s return
.07A taxpayer who, before filing a return, receives a determination letter about any
transaction that has been consummated and that is relevant to the return being filed
should attach a copy of the determination letter to the return when it is filed.
Review of determination letters.08Determination letters issued under sections 6.01 through 6.04 of this revenue
procedure are not reviewed by the national office before they are issued. If a taxpayer
believes that a determination letter of this type is in error, the taxpayer may ask the
district director to reconsider the matter or to request technical advice from the
national office as explained in Rev. Proc. 96–2, this Bulletin.

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SECTION 7. UNDER WHAT
CIRCUMSTANCES DOES THE
SERVICE HAVE DISCRETION TO
ISSUE LETTER RULINGS AND
DETERMINATION LETTERS?
Ordinarily not in certain areas
because of factual nature of the
problem
.01The Service ordinarily will not issue letter rulings or determination letters in
certain areas because of the factual nature of the problem involved or because of other
reasons. Rev. Proc. 96–3 and Rev. Proc. 96–7 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 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 national office or a
district director may, when it is considered appropriate and in the best interests of the
Service, issue an information letter calling attention to well-established principles of
tax law.
Not on alternative plans or
hypothetical situations
.02A letter ruling or a determination letter will not be issued on alternative plans
of proposed transactions or on hypothetical situations.
Ordinarily not on part of an
integrated transaction
.03The national office ordinarily will not issue a letter ruling on only part of an
integrated transaction. If, however, 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 the branch having jurisdiction for the
matters on which the taxpayer is seeking a letter ruling to discuss whether the national
office will issue a letter ruling on part of the transaction.
If two or more items or sub-methods of accounting are interrelated, the national
office ordinarily will not issue a letter ruling on a change in accounting method
involving only one of the items or sub-methods.
On constructive sales price
under §4216(b) or §4218(c)
.04The national office 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 tax purposes.
SECTION 8. WHAT ARE THE
GENERAL INSTRUCTIONS FOR
REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS?
This section explains the general instructions for requesting letter rulings and
determination letters on all matters. Requests for letter rulings and determination
letters require the payment of the applicable user fee listed in Appendix A of this
revenue procedure. For additional user fee requirements, see section 14 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 section 9 of this
revenue procedure followed by a reference (usually to another revenue procedure)
where more information can be obtained.
Certain information required in
all requests
.01
Facts(1)Complete statement of facts and other information. Each request for a letter
ruling or a determination letter must contain a complete statement of all facts relating
to the transaction. These facts include—
(a)names, addresses, telephone numbers, and taxpayer identification numbers of all
interested parties. (The term ‘‘all interested parties’’ does not mean all shareholders of
a widely held corporation requesting a letter ruling relating to a reorganization or all
employees where a large number may be involved.);
(b)the annual accounting period, and the overall method of accounting (cash or
accrual) for maintaining the accounting books and filing the federal income tax return,
of all interested parties;
(c)the location of the district office that has or will have examination jurisdiction
over the return (not the service center where the return is filed);
(d)a description of the taxpayer’s business operations;
(e)a complete statement of the business reasons for the transaction; and
(f)a detailed description of the transaction.

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The Service will usually not rule on only one step of a larger integrated transaction.
See section 7.03 of this revenue procedure. However, if such a letter ruling is
requested, the facts, circumstances, true copies of relevant documents, etc., relating to
the entire transaction must be submitted.
Documents(2)Copies of all contracts, wills, deeds, agreements, instruments, and other
documents. True copies of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, and other documents pertinent to the transaction
must be submitted with the request. The taxpayer must also submit certified English
translations of all applicable foreign laws and a copy of those laws with the request.
For guidelines on the acceptability of such documents, see Rev. Rul. 67–308, 1967–2
C.B. 254.
Each document, other than the request, should be labelled 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.
If the request concerns a corporate distribution, reorganization, or similar
transaction, the corporate balance sheet and profit and loss statement should be
submitted. If the request relates to a prospective transaction, the most recent balance
sheet and profit and loss statement should be submitted.
Analysis of material facts(3)Analysis of material facts. All material facts in documents must be included,
rather than merely incorporated by reference, in the taxpayer’s initial request or in
supplemental letters. These facts must be accompanied by an analysis of their bearing
on the issue or issues, specifying the provisions that apply.
Same issue in an earlier return(4)Statement regarding whether same issue is in an earlier return. The request
must state whether, to the best of the knowledge of both the taxpayer and the
taxpayer’s representatives, the same issue is in an earlier return of the taxpayer (or in
a return for any year of a related taxpayer within the meaning of §267, or of a
member of an affiliated group of which the taxpayer is also a member within the
meaning of §1504).
If the statement is affirmative, it must specify whether the issue—
(a)is being examined by a district director;
(b)has been examined, but the statutory period of limitations has not expired for
either assessing tax or filing a claim for refund or credit of tax;
(c)has been examined, but a closing agreement covering the issue or liability has
not been entered into by a district director;
(d)is being considered by an appeals office in connection with a return from an
earlier period;
(e)has been considered by an appeals office in connection with a return from an
earlier period, but the statutory period of limitations has not expired for either
assessing tax or filing a claim for refund or credit of tax;
(f)has been considered by an appeals office in connection with a return from an
earlier period, but a closing agreement covering the issue or liability has not been
entered into by an appeals office; or
(g)is pending in litigation in a case involving the taxpayer or a related taxpayer.
Same or similar issue previously
submitted or currently pending
(5)Statement regarding whether same or similar issue was previously ruled on or
requested, or is currently pending. The request must also state whether, to the best of
the knowledge of both the taxpayer and the taxpayer’s representatives—
(a)the Service previously ruled on the same or a similar issue for the taxpayer (or
a related taxpayer within the meaning of §267, or a member of an affiliated group of
which the taxpayer is also a member within the meaning of §1504) or a predecessor;
(b)the taxpayer, a related taxpayer, a predecessor, or any representatives previously
submitted a request involving the same or a similar issue to the Service but withdrew
the request before a letter ruling or determination letter was issued;
(c)the taxpayer, a related taxpayer, or a predecessor previously submitted a request
involving the same or a similar issue that is currently pending with the Service; or
(d)at the same time as this request, the taxpayer or a related taxpayer is presently
submitting another request involving the same or a similar issue to the Service.

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If the statement is affirmative for (a), (b), (c), or (d) of this section 8.01(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.
Statement of authorities
supporting taxpayer’s views
(6)Statement of supporting authorities. If the taxpayer advocates a particular
conclusion, an explanation of the grounds for that conclusion and the relevant
authorities to support it must be included. Even if not advocating a particular tax
treatment of a proposed transaction, the taxpayer must still 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
(7)Statement of contrary authorities. The taxpayer is also encouraged to inform
the Service about, and discuss the implications of, any authority believed to be
contrary to the position advanced, such as legislation (or pending legislation), tax
treaties, court decisions, regulations, notices, revenue rulings, revenue procedures, or
announcements. If the taxpayer determines that there are no contrary authorities, a
statement in the request to this effect would be helpful. If the taxpayer does not
furnish either contrary authorities or a statement that none exists, the Service in
complex cases or those presenting difficult or novel issues may request submission of
contrary authorities or a statement that none exists. Failure to comply with this request
may result in the Service’s refusal to issue a letter ruling or determination letter.
Identifying and discussing contrary authorities will generally enable Service
personnel to understand the issue and relevant authorities more quickly. When Service
personnel receive the request, they will have before them the taxpayer’s thinking on
the effect and applicability of contrary authorities. This information should make
research easier 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
(8)Statement identifying pending legislation. At the time of filing the request, the
taxpayer must identify any pending legislation that may affect the proposed
transaction. In addition, if legislation is introduced after the request is filed but before
a letter ruling or determination letter is issued, the taxpayer must notify the Service.
Deletions statement required by
§ 6110
(9)Statement identifying information to be deleted from copy of letter ruling or
determination letter for public inspection. 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 (‘‘deletions
statement’’). If the deletions statement is not submitted with the request, a Service
representative will tell the taxpayer that the request will be closed if the Service does
not receive the deletions statement within 21 calendar days. See section 10.06 of this
revenue procedure.
Format of deletions statement(a)A taxpayer who wants only names, addresses, and identifying numbers to be
deleted should state this in the deletions statement. If the taxpayer wants more
information deleted, the deletions 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 deletions statement must indicate the statutory basis under
§ 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or
determination letter is issued, additional deletions statements may be submitted.
Location of deletions statement(b)The deletions statement must not appear in the request, but instead must be
made in a separate document and placed on top of the request for a letter ruling or
determination letter.
Signature(c)The deletions statement must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature is not permitted.

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Additional information(d)The taxpayer should follow the same procedures above to propose deletions
from any additional information submitted after the initial request. An additional
deletions statement, however, is not required with each submission of additional
information if the taxpayer’s initial deletions 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.
Taxpayer may protest deletions
not made
(e)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 within
20 calendar days to the Service office indicated on the notice of intention to disclose.
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 deletions
proposed 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. However, these matters may be taken
up at any conference that is otherwise scheduled regarding the request.
Taxpayer may request delay of
public inspection
(f)After receiving the notice under §6110(f)(1) of intention to disclose, but within
60 calendar days after the date of notice, the taxpayer may send a request for delay of
public inspection under either §6110(g)(3) or (4). The request for delay must be sent
to the Service office indicated on the notice of intention to disclose. A request for
delay under §6110(g)(3) must contain the date on which it is expected that the
underlying transaction will be completed. The request for delay under §6110(g)(4)
must contain a statement from which the Commissioner of Internal Revenue may
determine that there are good reasons for the delay.
Signature on request(10)Signature by taxpayer or authorized representative. The request for a letter
ruling or determination letter must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature is not permitted.
Authorized representatives(11)Authorized representatives. To sign the request or to appear before the Service
in connection with the request, the representative must be:
Attorney(a)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;
Certified public accountant(b)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;
Enrolled agent(c)An enrolled agent who is a person, other than an attorney or certified public
accountant, that is currently enrolled to practice before the Service and 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. Either the enrollment number or the expiration date of the
enrollment card must be included in the declaration. For the rules on who may
practice before the Service, see Treasury Department Circular No. 230 (31 C.F.R. part
10 (1995));
Enrolled actuary(d)An enrolled actuary who is a person, other than an attorney or certified public
accountant, that is currently enrolled as an actuary by the Joint Board for the
Enrollment of Actuaries pursuant to 29 U.S.C. §1242 and who is not currently under
suspension or disbarment from practice before the Service. He or she must file a

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written declaration with the Service showing current qualification as an enrolled
actuary and current authorization to represent the taxpayer. Practice before the Service
as an enrolled actuary is limited to representation with respect to issues involving
§§401, 403(a), 404, 405, 412, 413, 414, 4971, 6057, 6058, 6059, 6652(e), 6652(f),
6692, 7805(b), and involving 29 U.S.C. §1083; or
A person with a ‘‘Letter of
Authorization’’
(e)Any other person, including a foreign representative, who has received a
‘‘Letter of Authorization’’ from the Director of Practice 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 Director of Practice, HR:DP, Internal Revenue
Service, 1111 Constitution Avenue, N.W., 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.
Employee, general partner,
bona fide officer, administrator,
trustee, etc.
The above requirements do not apply to a regular full-time employee representing
his or her employer, to a general partner representing his or her partnership, to a bona
fide officer representing his or her corporation, association, or organized group, or to a
trustee, receiver, guardian, personal representative, administrator, or executor
representing a trust, receivership, guardianship, or estate. A preparer of a return (other
than a person referred to in paragraph (a), (b), (c), (d), or (e) of this section 8.01(11))
who is not a full-time employee, general partner, bona fide officer, or an
administrator, trustee, etc., may not represent a taxpayer in connection with a letter
ruling or a determination letter. See section 10.7(c) of Treasury Department Circular
No. 230.
Foreign representativeA foreign representative (other than a person referred to in paragraph (a), (b), (c),
(d), or (e) of this section 8.01(11)) is not authorized to practice before the Service
and, therefore, 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 paragraph (a), (b), (c),
(d), or (e) of this section 8.01(11).
Power of attorney and
declaration of representative
(12)Power of attorney and declaration of representative. Any authorized
representative, whether or not enrolled to practice, must also comply with the
conference and practice requirements of the Statement of Procedural Rules (26 C.F.R.
§ 601.501–509 (1995)), which provide the rules for representing a taxpayer before the
Service. It is preferred that Form 2848, Power of Attorney and Declaration of
Representative, be used to provide the representative’s authorization (Part I of Form
2848, Power of Attorney) and the representative’s qualification (Part II of Form 2848,
Declaration of Representative). The name of the person signing Part I of Form 2848
should also be typed or printed on this form. A stamped signature is not permitted.
For additional information regarding the power of attorney form, see section 8.02(2)
of this revenue procedure.
For the requirement regarding compliance with Treasury Department Circular No.
230, see section 8.08 of this revenue procedure.
Penalties of perjury statement(13)Penalties of perjury statement. A request for a letter ruling or determination
letter and any factual information or 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 this request, including accompanying documents, and
to the best of my knowledge and belief, the facts presented in support of the
requested letter ruling or determination letter are true, correct, and complete.’’ A
taxpayer who submits additional factual information on several occasions may provide
one declaration subsequent to all submissions that refers to all submissions.
Signature by taxpayerThe declaration must be signed and dated by the taxpayer, not the taxpayer’s
representative. A stamped signature is not permitted.
The person who signs for a corporate taxpayer must be an officer of the corporate
taxpayer who has personal knowledge of the facts and whose duties are not limited to
obtaining a letter ruling or determination letter from the Service. If the corporate
taxpayer is a member of an affiliated 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.

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The person signing for a trust or partnership must be a trustee or general partner
who has personal knowledge of the facts.
Number of copies of request to
be submitted
(14)Number of copies of request to be submitted. Generally, a taxpayer needs
only to submit one copy of the request for a letter ruling or determination letter. If,
however, more than one issue is presented in the letter ruling request, the taxpayer is
encouraged to submit additional copies of the request.
Further, two copies of the request for a letter ruling or determination letter are
required if—
(a)the taxpayer is requesting separate letter rulings or determination letters on
different issues as explained later under section 8.02(1) of this revenue procedure;
(b)the taxpayer is requesting deletions other than names, addresses, and identifying
numbers, as explained in section 8.01(9)(a) of this revenue procedure; or
(c)a closing agreement (as defined in section 2.02 of this revenue procedure) is
being requested on the issue presented.
Sample of a letter ruling request(15)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. This format is not required to be used
by the taxpayer or the taxpayer’s representative. If the letter ruling request is not
identical or similar to the format in Appendix B, the different format will not defer
consideration of the letter ruling request.
Checklist(16)Checklist for letter ruling requests. The Service 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, which 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 listed in section 9.01 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.
Copies of the checklist in Appendix C can be obtained by calling (202) 622-7560
(not a toll-free call). A photocopy of this checklist may be used.
Additional information required in
certain circumstances
.02
Multiple issues(1)To request separate letter rulings for multiple issues in a single situation. If
more than one issue is presented in a request for a letter ruling, the Service generally
will issue a single letter ruling covering all the issues. However, if the taxpayer
requests separate letter rulings on any of the issues (because, for example, one letter
ruling is needed sooner than another), the Service will usually comply with the request
unless it is not feasible or not in the best interests of the Service to do so. A taxpayer
who wants separate letter rulings on multiple issues should make this clear in the
request and submit two copies of the request.
In issuing each letter ruling, the Service will state that it has issued separate letter
rulings or that requests for other letter rulings are pending.
Power of attorney(2)To designate recipient of original or copy of letter ruling or determination
letter. Unless the power of attorney provides otherwise, the Service will send the
original of the letter ruling or determination letter to the taxpayer and a copy of the
letter ruling or determination letter to the taxpayer’s representative. It is preferred that
Form 2848, Power of Attorney and Declaration of Representative, be used to provide
the representative’s authorization. See section 8.01(12) of this revenue procedure.

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Copies of letter ruling or
determination letter sent to
multiple representatives
(a)To have copies sent to multiple representatives. When a taxpayer has more
than one representative, the Service will send the copy of the letter ruling or
determination letter to the first representative named on the most recent power of
attorney. If the taxpayer wants an additional copy of the letter ruling or determination
letter sent to the second representative listed in the power of attorney, the taxpayer
must check the appropriate box on Form 2848. If this form is not used, the taxpayer
must state in the power of attorney that a copy of the letter ruling or determination
letter is to be sent to the second representative listed in the power of attorney. Copies
of the letter ruling or determination letter, however, will be sent to no more than two
representatives.
Original of letter ruling or
determination letter sent to
taxpayer’s representative
(b)To have original sent to taxpayer’s representative. A taxpayer may request that
the original of the letter ruling or determination letter be sent to the taxpayer’s
representative. In this case, a copy of the letter ruling or determination letter will be
sent to the taxpayer.
If the taxpayer wants the original of the letter ruling or determination letter sent to
the taxpayer’s representative, the taxpayer must check the appropriate box on Form
2848. If this form is not used, the taxpayer must state in the power of attorney that the
original of the letter ruling or determination letter is to be sent to the taxpayer’s
representative. When a taxpayer has more than one representative, the Service will
send the original of the letter ruling or determination letter to the first representative
named in the most recent power of attorney.
No copy of letter ruling or
determination letter sent to
taxpayer’s representative
(c)To have no copy sent to taxpayer’s representative. If a taxpayer does not want
a copy of the letter ruling or determination letter sent to any representative, the
taxpayer must check the appropriate box on Form 2848. If this form is not used, the
taxpayer must state in the power of attorney that a copy of the letter ruling or
determination letter is not to be sent to any representative.
‘‘Two-Part’’ letter ruling requests(3)To request a particular conclusion on a proposed transaction. A taxpayer who
is requesting 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 8.01 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 Service 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. However, the Service 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 §521, or
rulings on employment tax status.
After the Service has resolved the issues presented by a letter ruling request, the
Service representative may request that the taxpayer submit a proposed draft of the
letter ruling to expedite the issuance of the ruling. See section 10.16 of this revenue
procedure.
Expeditious handling(4)To request expeditious handling. The Service processes requests for letter
rulings and determination letters in order of the date received and as expeditiously as
possible. A taxpayer who has a compelling need to have a request processed ahead of
the regular order must request expeditious handling. This request must explain the
need for expeditious handling.
The request for expeditious handling must be made in writing, preferably in a
separate letter with, or soon after filing, the request for the letter ruling or
determination letter. If the request for expeditious handling is not made in a separate
letter, then the letter in which the letter ruling or determination letter request is made
should say, at the top of the first page: ‘‘Expeditious Handling Is Requested. See page
— of this letter.’’

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A request for expeditious handling will not be forwarded to a rulings branch for
action until the check for the user fee is received.
The Service cannot give assurance that any letter ruling or determination letter will
be processed by the time requested. For example, 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.
Accordingly, the Service urges taxpayers to submit their requests well in advance of
the contemplated transaction.
Facsimile (fax) transmission(5)To receive a letter ruling or submit a request for a letter ruling by facsimile
transmission. A letter ruling ordinarily is not sent by facsimile (fax) transmission.
However, if the taxpayer requests, a copy of a letter ruling may be faxed to the
taxpayer or the taxpayer’s authorized representative. A letter ruling, however, is not
issued until the ruling is mailed. See §301.6110–2(h) of the Income Tax Regulations.
A request to fax a copy of the letter ruling to the taxpayer or the taxpayer’s
authorized representative must be made in writing, either as part of the original letter
ruling request or prior to the approval of the letter ruling. The request must contain
the fax number of the taxpayer or the taxpayer’s authorized representative to whom
the letter ruling is to be faxed.
In addition, because of the nature of a fax transmission, a statement containing a
waiver of any disclosure violations resulting from the fax transmission must
accompany the request. Nevertheless, the national office will take certain precautions
to protect confidential information. For example, the national office will use a cover
sheet that identifies the intended recipient of the fax and the number of pages
transmitted and that contains a statement prohibiting unauthorized disclosure of the
letter ruling if a recipient of the faxed letter ruling is not the intended recipient of the
fax. The letter ruling will be faxed by the Communications Unit of the Technical
Services Staff (CC:DOM:CORP:T:C).
Original letter ruling requests by fax are discouraged because such requests must be
treated in the same manner as requests by letter. For example, the faxed letter ruling
request will not be forwarded to the rulings branch for action until the check for the
user fee is received.
This section does not apply to the high volume requests submitted by taxpayers for
a change in accounting method or a change in accounting period.
Requesting a conference(6)To request a conference. A taxpayer who wants to have a conference on the
issues involved should indicate this in writing when, or soon after, filing the request.
See also sections 10.08, 10.09, and 11.11(2) of this revenue procedure.
Address to send the request.03
Requests for letter rulings(1)Requests for letter rulings should be sent to the Associate Chief Counsel
(Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organiza-
tions), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief
Counsel (International), as appropriate, at the following address:
Internal Revenue Service
Attn: CC:DOM:CORP:T
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
The package should be marked: RULING REQUEST SUBMISSION. Requests may
also be hand delivered to the drop box at the 12th Street entrance of 1111 Constitution
Avenue, N.W., Washington, DC. No receipt will be given at the drop box.
Requests for determination letters(2)Requests for determination letters should be sent to the district director whose
office has or will have examination jurisdiction over the taxpayer’s return. For fees
required with determination letter requests, see section 14 and Appendix A of this
revenue procedure.

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Pending letter ruling requests.04
Circumstances under which the
taxpayer must notify the national
office
The taxpayer must notify the national office if, after the letter ruling request is filed
but before a letter ruling is issued, the taxpayer knows that—
(1)an examination of the issue or the identical issue on an earlier year’s return has
been started by a district director;
(2)in the case of a §301.9100–1 request, an examination of any return covering
the issue presented in the §301.9100–1 request has been started by a district director.
See section 5.02(3) of this revenue procedure; or
(3)legislation that may affect the transaction is introduced. See section 8.01(8) of
this revenue procedure.
Must notify national office if
return is filed and must attach
request to return
In addition, if the taxpayer files a return before a letter ruling is received from the
national office concerning the issue, the taxpayer must notify the national office that
the return has been filed. The taxpayer must also attach a copy of the letter ruling
request to the return to alert the district office and thereby avoid premature district
action on the issue.
This section also applies to pending requests for a closing agreement on a
transaction for which a letter ruling is not requested or issued, and for an advance
pricing agreement.
When to attach letter ruling to
return
.05
A taxpayer who receives a letter ruling before filing a return about any transaction
that is relevant to the return being filed must attach a copy of the letter ruling to the
return when it is filed.
How to check on status of
request
.06
The taxpayer or the taxpayer’s authorized representative may obtain information
regarding the status of a request by calling the person whose name and telephone
number are shown on the acknowledgement of receipt of the request or the
appropriate branch representative who contacts the taxpayer as explained in section
10.02 of this revenue procedure.
Request may be withdrawn or
national office may decline to
issue letter ruling
.07
If a taxpayer withdraws a request for a letter ruling or if the national office declines
to issue a letter ruling, the national office will notify the appropriate district director
and may give its views on the issues in the request to the appropriate district director
to consider in any later examination of the return. The 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 the national
office declines to issue a letter ruling will not be returned to the taxpayer. See section
8.01(2) of this revenue procedure. In appropriate cases, the Service may publish its
conclusions in a revenue ruling or revenue procedure.
The user fee will not be returned for a letter ruling request that is withdrawn. If the
national office declines to issue a letter ruling on all of the issues in the request, the
user fee will be returned. If the national office, however, issues a letter ruling on
some, but not all, of the issues, the user fee will not be returned. See section 14.09 of
this revenue procedure for additional information regarding refunds of user fees.
Compliance with Treasury
Department Circular No. 230
.08
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 those situations when the national office believes that the taxpayer’s
representative is not in compliance with Circular No. 230, the national office will
bring the matter to the attention of the Director of Practice.
For the requirement regarding compliance with the conference and practice
requirements, see section 8.01(12) of this revenue procedure.

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SECTION 9. WHAT OTHER
CHECKLISTS, GUIDELINE REVENUE
PROCEDURES, SAFE HARBOR
REVENUE PROCEDURES, AND
AUTOMATIC CHANGE REVENUE
PROCEDURES AND NOTICES
APPLY TO CERTAIN REQUESTS?
Specific revenue procedures and notices supplement the general instructions for
requests explained in section 8 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 and guideline revenue
procedures
.01For requests relating to the following Code sections and subject matters, see the
following checklists and guideline revenue procedures.
CODE OR REGULATION
SECTION
REVENUE PROCEDURE
103, 141–150, 7478, and 7871
Issuance of state or local
obligations
Rev. Proc. 88–32, 1988–1 C.B. 833 (for issuers); Rev. Proc. 88–33, 1988–1 C.B. 835
(for nonissuing parties and for outstanding obligations); 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 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 and
Adjustments
Rev. Proc. 77–37, 1977–2 C.B. 568, as modified by Rev. Proc. 89–30, 1989–1 C.B.
895, and as amplified by Rev. Proc. 77–41, 1977–2 C.B. 574, Rev. Proc. 83–81,
1983–2 C.B. 598 (see also Rev. Proc. 96–3), Rev. Proc. 84–42, 1984–1 C.B. 521
(superseded as to no-rule areas by Rev. Proc. 85–22, 1985–1 C.B. 550), Rev. Proc.
86–42, 1986–2 C.B. 722, and Rev. Proc. 89–50, 1989–2 C.B. 631. But see Rev. Proc.
96–3, section 3.01(24) (mergers or consolidations under §368(a)(1)(A)), section
3.01(25) (stock acquisitions under §368(a)(1)(B)), and section 3.01(28) (corporate
changes under §368(a)(1)(F)), which describe certain corporate reorganizations where
the Service will not issue advance letter rulings or determination letters.
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.
331
Checklist questionnaire
Rev. Proc. 86–16, 1986–1 C.B. 546.
332
Checklist questionnaire
Rev. Proc. 90–52, 1990–2 C.B. 626.
351
Checklist questionnaire
Rev. Proc. 83–59, 1983–2 C.B. 575. But see section 3.01(22) of Rev. Proc. 96–3,
which describes certain transfers to controlled corporations where the Service will not
issue advance letter rulings or determination letters.
355
Checklist questionnaire
Rev. Proc. 86–41, 1986–2 C.B. 716, as modified by Rev. Proc. 91–62, 1991–2 C.B.
864, and Rev. Proc. 91–63, 1991–2 C.B. 865. But see section 3.01(23) of Rev. Proc.
96–3, which describes certain circumstances under which the Service will not issue
advance letter rulings or determination letters as to whether the corporate business
purpose requirement of §1.355–2(b) is satisfied.
368(a)(1)(E)
Checklist questionnaire
Rev. Proc. 81–60, 1981–2 C.B. 680. But see section 3.01(27) of Rev. Proc. 96–3,
which describes circumstances under which the Service will not issue advance letter
rulings or determination letters as to whether a transaction constitutes a corporate
recapitalization within the meaning of §368(a)(1)(E) (or a transaction that also
qualifies under §1036).
482
Advance pricing agreements
Rev. Proc. 91–22, 1991–1 C.B. 526, as corrected by Rev. Proc. 91–22A, 1991–1 C.B.
534, and as modified by Rev. Proc. 96–1 (this revenue procedure) and Rev. Proc. 96–8.

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521
Appeal procedure with regard to
adverse determination letters and
revocation or modification of
exemption letter rulings and
determination letters
Rev. Proc. 90–27, 1990–1 C.B. 514, as modified by Rev. Proc. 96–8.
1.817–5(a)(2)
Issuer of a variable contract
requesting relief
Rev. Proc. 92–25, 1992–1 C.B. 741.
1.1502–75(c)(2)(i)
Consent to discontinue filing
consolidated returns
Rev. Proc. 95–39, 1995–35 I.R.B. 17 (certain consolidated groups may submit an
application requesting consent to discontinue filing consolidated returns; this
application must be filed on or before June 30, 1996).
1.1502–76(a)(1)
Consent to file a consolidated
return where member(s) of the
affiliated group use a 52–53
week taxable year
Rev. Proc. 89–56, 1989–2 C.B. 643.
1504(a)(3)(A) and (B)
Waiver of application of
§ 1504(a)(3)(A) for certain
corporations
Rev. Proc. 91–71, 1991–2 C.B. 900.
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.
4980BRev. Proc. 87–28, 1987–1 C.B. 770 (treating references to former §162(k) as if they
were references to §4980B).
301.9100–1
Granting extensions for making
elections
Rev. Proc. 92–85, 1992–2 C.B. 490, as modified by Rev. Proc. 96–1 (this revenue
procedure), and Rev. Proc. 93–28, 1993–2 C.B. 344; and Rev. Proc. 92–20, 1992–1
C.B. 685, as modified by Rev. Proc. 96–1 (this revenue procedure), Rev. Proc. 96–8,
Rev. Proc. 92–90, 1992–2 C.B. 501, and Rev. Proc. 92–85. See also section 5.02 of
this revenue procedure and section 5 of Rev. Proc. 96–2.
SUBJECT MATTERSREVENUE PROCEDURE
Accounting methodsRev. Proc. 92–20, 1992–1 C.B. 685, as modified by Rev. Proc. 96–1 (this revenue
procedure), Rev. Proc. 96–8, Rev. Proc. 92–90, and Rev. Proc. 92–85; and Rev. Proc.
96–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01(2), 3.01(3),
3.01(4), 5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5),
8.01(6), 8.01(7), 8.01(8), 8.01(11), 8.01(12), 8.02(2), 8.02(4), 8.02(6), 8.03(1), 8.04,
8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07(1), 10.07(2), 10.08, 10.09, 10.10,
10.11, 10.12, 10.13, 10.14, 10.15, 10.17, 11, 14, and Appendix A are applicable.
Accounting periods; adopt, retain
or change for partnership, S
corporation, and personal service
corporation
Rev. Proc. 87–32, 1987–2 C.B. 396, as modified by Rev. Proc. 92–85; and Rev. Proc.
96–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01(3), 5.02,
5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6),
8.01(7), 8.01(8), 8.01(11), 8.01(12), 8.02(2), 8.02(4), 8.02(6), 8.03(1) (only for Forms
1128 filed under section 6.01 of Rev. Proc. 87–32), 8.04, 8.05, 8.06, 8.07, 8.08, 9,
10.01, 10.04, 10.05, 10.07(1), 10.07(2), 10.08, 10.09, 10.10, 10.11, 10.12, 10.13,
10.14, 10.15, 10.17, 11, 14, and Appendix A are applicable.
Accounting periods; changes in
period
Rev. Proc. 92–13, 1992–1 C.B. 665, as modified and amplified by Rev. Proc. 92–13A,
1992–1 C.B. 668, and as modified by Rev. Proc. 94–12, 1994–1 C.B. 565; and Rev.
Proc. 96–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01(3),
5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6),
8.01(7), 8.01(8), 8.01(11), 8.01(12), 8.02(2), 8.02(4), 8.02(6), 8.03(1), 8.04, 8.05, 8.06,
8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07(1), 10.07(2), 10.08, 10.09, 10.10, 10.11,
10.12, 10.13, 10.14, 10.15, 10.17, 11, 14, and Appendix A are applicable.
Classification of an organization
as a partnership
Rev. Proc. 92–35, 1992–1 C.B. 790, as amplified by Rev. Proc. 94–46, 1994–2 C.B.
688; Rev. Proc. 89–12, 1989–1 C.B. 798, as supplemented by Rev. Proc. 92–33,
1992–1 C.B. 782, as modified by Rev. Proc. 95–10, 1995–1 C.B. 501, and as
amplified by Rev. Proc. 94–46 and Rev. Proc. 91–13, 1991–1 C.B. 477 (checklist
questionnaire); and Rev. Proc. 86–12, 1986–1 C.B. 534.

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Classification of a limited
liability company as a partnership
Rev. Proc. 95–10, 1995–1 C.B. 501.
Classification of liquidating trustsRev. 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; and Rev. Proc. 96–1 (this revenue procedure) for
which sections 2.06, 3.01(3), 8, 10.04, 10.06, and 10.12 are applicable.
Estate, gift, and generation-
skipping transfer tax issues
Rev. Proc. 91–14, 1991–1 C.B. 482 (checklist questionnaire).
Deferred intercompany
transactions; election not to defer
gain or loss
Rev. Proc. 82–36, 1982–1 C.B. 490.
Leveraged leasingRev. Proc. 75–21, 1975–1 C.B. 715, as modified by Rev. Proc. 76–30, 1976–2 C.B.
647, Rev. Proc. 79–48, 1979–2 C.B. 529, and Rev. Proc. 81–71, 1981–2 C.B. 731;
and Rev. Proc. 75–28, 1975–1 C.B. 752, as modified by Rev. Proc. 79–48 and Rev.
Proc. 81–71.
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 national
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 (Domestic), Attention CC:DOM:CORP:T, P.O. Box 7604,
Ben Franklin Station, Washington, DC 20044. These communications will be treated
as third party contacts for purposes of §6110.
Unfunded deferred compensationRev. 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, for the model trust for use in Rabbi
Trust Arrangements.
Safe harbor revenue procedures.02For requests relating to the following Code sections and subject matters, see the
following safe harbor revenue procedures.
CODE OR REGULATION
SECTION
REVENUE PROCEDURE
103 and 141–150
Issuance of state or local
obligations
Rev. Proc. 93–17, 1993–1 C.B. 507 (changes of use of proceeds); and Rev. Proc. 93–
19, 1993–1 C.B. 526 (management contracts).
280B
Certain structural modifications to
a building not treated as a
demolition
Rev. Proc. 95–27, 1995–1 C.B. 704.
355(a)(1)(B)
Transaction not violating the
device test
Rev. Proc. 91–63, 1991–2 C.B. 865.
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.

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664(d)(1)
Qualification of trusts as
charitable remainder annuity
trusts
Rev. Proc. 89–21, 1989–1 C.B. 842, as amplified by Rev. Proc. 90–32, 1990–1 C.B.
546.
664(d)(2)
Qualification of trusts as
charitable remainder unitrusts
Rev. Proc. 89–20, 1989–1 C.B. 841, as amplified by Rev. Proc. 90–30, 1990–1 C.B.
534.
664(d)(2) and (3)
Qualification of trusts as
charitable remainder unitrusts
Rev. Proc. 90–31, 1990–1 C.B. 539.
1286
Determination of reasonable
compensation under mortgage
service contracts
Rev. Proc. 91–50, 1991–2 C.B. 778.
1362(f)
Automatic inadvertent termination
relief to certain corporations
Rev. Proc. 94–23, 1994–1 C.B. 609.
301.7701–2
Classification of limited
partnerships as partnerships
Rev. Proc. 92–88, 1992–2 C.B. 496.
301.7701–2(b)(1)
Majority in interest
Rev. Proc. 94–46, 1994–2 C.B. 688.
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 MATTERSREVENUE PROCEDURE
Certain rent-to-own contracts
treated as leases
Rev. Proc. 95–38, 1995–34 I.R.B. 25.
Automatic change revenue
procedures and notices
.03For requests to change an accounting period or accounting method, see the
following automatic change revenue procedures and notices published and in effect as
of December 31, 1995. A taxpayer complying timely with an automatic change
revenue procedure or notice will be deemed to have obtained the consent of the
Commissioner to change the taxpayer’s accounting period or accounting method, as
applicable.
CODE SECTIONREVENUE PROCEDURE
442
Changes in accounting periods
The automatic change revenue procedures for obtaining a change in annual accounting
period include: Rev. Proc. 92–13, 1992–1 C.B. 665, as modified by Rev. Proc. 94–12,
1994–1 C.B. 565, and as modified and amplified by Rev. Proc. 92–13A, 1992–1 C.B.
668 (certain corporations that have not changed their accounting period within the
prior 6 calendar years or other specified time); Rev. Proc. 87–32, 1987–2 C.B. 396, as
modified by Rev. Proc. 92–85 (partnership, S corporation, or personal service
corporation seeking a natural business year or an ownership taxable year); Rev. Proc.
68–41, 1968–2 C.B. 943, as modified by Rev. Proc. 81–40, 1981–2 C.B. 604 (trusts
held by certain fiduciaries needing a workload spread); and Rev. Proc. 66–50, 1966–2
C.B. 1260, as modified by Rev. Proc. 81–40 (individual seeking a calendar year).
446
Changes in accounting methods
The automatic change revenue procedures and notices for obtaining a change in
method of accounting include: Notice 95–57, 1995–45 I.R.B. 12 (cash method banks
in the Eighth Circuit seeking to change to the cash method of accounting for stated
interest on short-term loans made in the ordinary course of business); Rev. Proc. 95–
33, 1995–28 I.R.B. 7 (certain small resellers, formerly small resellers, or reseller-
producers seeking to change their method of accounting for costs subject to §263A);
Rev. Proc. 95–25, 1995–1 C.B. 701 (certain taxpayers seeking to elect a historic ab-
sorption ratio under §263A for their first, second, or third taxable year beginning on
or after January 1, 1994); Rev. Proc. 95–19, 1995–1 C.B. 664 (taxpayers seeking to
change certain methods of accounting for interest costs subject to §263A(f) for their
first or second taxable year beginning on or after January 1, 1994); Rev. Proc. 94–49,
1994–2 C.B. 705, as modified by Rev. Proc. 95–33 (certain taxpayers seeking to com-

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ply with the final regulations under §263A; Rev. Proc. 94–49 generally applies to a
taxpayer’s first taxable year beginning on or after January 1, 1994); Rev. Proc. 94–30,
1994–1 C.B. 621 (certain taxpayers seeking to change method for original issue
discount for loans acquired before the applicable cut-off dates in Rev. Proc. 94–29 and
Rev. Proc. 94–28); Rev. Proc. 94–29, 1994–1 C.B. 616 (certain taxpayers seeking to
change to the principal-reduction method for loans acquired on or after a certain cut-
off date); Rev. Proc. 94–28, 1994–1 C.B. 614 (certain taxpayers seeking to comply
with the final regulations dealing with original issue discount for loans acquired on or
after a certain cut-off date); Rev. Proc. 93–48, 1993–2 C.B. 580 (certain taxpayers
required to change method of accounting for notional principal contracts entered into
after December 12, 1993); Rev. Proc. 93–13, 1993–1 C.B. 482 (certain taxpayers
required to change method for deducting amounts owed to related foreign persons in
order to comply with §267(a)(3)); Rev. Proc. 92–98, 1992–2 C.B. 512 (certain
accrual method taxpayers selling multi-year service warranty contracts seeking to elect
the service warranty income method); Rev. Proc. 92–75, 1992–2 C.B. 448 (certain
taxpayers, other than those required to use inventories, seeking to change to an accrual
method); Rev. Proc. 92–74, 1992–2 C.B. 442 (certain taxpayers, required to use
inventories, seeking to change to an accrual method); Rev. Proc. 92–67, 1992–2 C.B.
429 (certain taxpayers with one or more market discount bonds seeking to make a
constant interest rate election or seeking to make or revoke an election under
§ 1278(b)); Rev. Proc. 92–29, 1992–1 C.B. 748 (certain taxpayers seeking to use an
alternative method under §461(h) for the inclusion of common improvement costs in
basis); Rev. Proc. 91–51, 1991–2 C.B. 779 (certain taxpayers that sell mortgages and
retain rights to service the mortgages); Rev. Proc. 91–49, 1991–2 C.B. 777 (holders of
certain mortgages that are stripped bonds); Rev. Proc. 91–31, 1991–1 C.B. 566
(certain utilities holding customer deposits); Rev. Proc. 90–63, 1990–2 C.B. 664
(certain taxpayers changing their accounting treatment of package design costs); Rev.
Proc. 90–37, 1990–2 C.B. 361 (certain taxpayers with interest income from short-term
loans); Rev. Proc. 89–46, 1989–2 C.B. 597 (cash basis taxpayers with certain United
States savings bonds); Rev. Proc. 88–15, 1988–1 C.B. 683 (certain taxpayers seeking
to discontinue LIFO inventory method); Rev. Proc. 85–8, 1985–1 C.B. 495 (certain
taxpayers seeking to change from specific charge-off method to reserve method for
bad debts); Rev. Proc. 84–76, 1984–2 C.B. 751 (taxpayers seeking to treat prepaid
subscription income under the provisions of §455); Rev. Proc. 84–30, 1984–1 C.B.
482 (taxpayers who used the Rule of 78’s for interest on consumer loans); Rev. Proc.
84–29, 1984–1 C.B. 480 (individual borrowers who reported interest deductions in
accordance with the Rule of 78’s); and Rev. Proc. 74–11, 1974–1 C.B. 420 (taxpayers
seeking to change their method of depreciation accounting for property subject to
§ 167).
SECTION 10. HOW DOES THE
NATIONAL OFFICE HANDLE LETTER
RULING REQUESTS?
The national office 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.
Controls request and refers it to
appropriate Assistant Chief
Counsel or to the Office of
Associate Chief Counsel
(International)
.01All requests for letter rulings will be controlled by the Technical Services Staff
of the Assistant Chief Counsel (Corporate) (CC:DOM:CORP:T). That office will
examine the incoming documents for completeness, process the user fee, and forward
the file to the appropriate Assistant Chief Counsel or, for letter ruling requests under
the jurisdiction of the Associate Chief Counsel (International), to the Office of
Associate Chief Counsel (International). The Assistant Chief Counsel’s office or the
Office of Associate Chief Counsel (International), as appropriate, will assign the letter
ruling request to one of its branches.
Branch representative contacts
taxpayer within 21 days
.02Within 21 calendar days after a letter ruling request has been received in the
branch having jurisdiction, a representative of the branch will discuss the procedural
issues in the letter ruling request with the taxpayer or, if the request includes a
properly executed power of attorney, with the authorized representative unless the
power of attorney provides otherwise. 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. However, 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 Service rule as the
taxpayer requested, rule adversely on the matter, or not rule;

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(2)whether the taxpayer should submit additional information to enable the Service
to rule on the matter; or
(3)whether, because of the nature of the transaction or the issue presented, a
tentative conclusion on the issue cannot be reached.
Except for cases involving a request for change in accounting method or
accounting period, the 21 calendar day procedure applies to: all matters within the
jurisdiction of the Assistant Chief Counsel (Corporate), the Assistant Chief Counsel
(Income Tax and Accounting), the Assistant Chief Counsel (Passthroughs and Special
Industries), the Associate Chief Counsel (Employee Benefits and Exempt Organiza-
tions), the Associate Chief Counsel (Enforcement Litigation), and the Associate Chief
Counsel (International); and all matters within the jurisdiction of the Assistant Chief
Counsel (Financial Institutions and Products), except cases concerning insurance
issues requiring actuarial computations.
Notifies taxpayer if any issues
have been referred to other
branches
.03If the letter ruling request involves matters within the jurisdiction of more than
one branch, a representative of the branch that received the request will tell the
taxpayer within the initial 21 days—
(1)that the matters within the jurisdiction of another branch have been referred to
that branch for consideration; and
(2)that a representative of that branch 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.
Determines if transaction can be
modified to obtain favorable
letter ruling
.04If a less than fully favorable letter ruling is indicated, the branch representative
will tell the taxpayer whether minor changes in the transaction or adherence to certain
published positions would bring about a favorable ruling. The branch representative
may also tell the taxpayer the facts that must be furnished in a document to comply
with Service requirements. However, 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 method or accounting period.
If, at the end of this discussion, the branch representative determines that a meeting
in the national 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
10.09 of this revenue procedure.
Is not bound by informal
opinion expressed
.05The Service will not be bound by the informal opinion expressed by the branch
representative or any other authorized Service representative, and such an opinion
cannot be relied upon as a basis for obtaining retroactive relief under the provisions of
§ 7805(b).
Tells taxpayer if request lacks
essential information during
initial contact
.06If a request for a letter ruling or determination letter does not comply with all
the provisions of this revenue procedure, the branch representative will tell the
taxpayer during the initial contact which requirements have not been met.
Information must be submitted
within 21 calendar days
(1)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 tell the taxpayer during the initial contact that the
request will be closed if the Service does not receive the information within 21
calendar days unless an extension of time is granted. See sections 10.07(1) and (2) of
this revenue procedure for instructions on submissions of additional information.
21-day period will be extended
if justified and approved
(2)An extension of the 21-day period will be granted only if justified in writing by
the taxpayer and approved by the branch chief, senior technician reviewer (or senior
technical reviewer), or assistant to the branch chief (or assistant branch chief) of the
branch to which the case is assigned. A request for 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
national office within the 21-day period that there is a problem and that the written
request for extension will be coming soon. 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.

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Letter ruling request closed if
the taxpayer does not submit
information
(3)If the taxpayer does not submit the information requested during the initial
contact 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. However, the taxpayer must pay another user fee before the
case can be reopened.
Letter ruling request mistakenly
sent to district director
(4)A request for a letter ruling sent to the district director that does not comply
with the provisions of this revenue procedure will be returned by the district director
so that the taxpayer can make corrections before sending it to the national office.
Requires prompt submission of
additional information requested
after initial contact
.07
(1)Material facts furnished to the Service by telephone or fax, or orally at a
conference, must be promptly confirmed by letter to the Service with a declaration
that the information is provided under penalties of perjury in the form described in
section 8.01(13) of this revenue procedure. This confirmation and any additional
information requested by the Service that is not part of the information requested
during the initial contact must be furnished within 21 calendar days to be considered
part of the request.
To facilitate prompt action on letter ruling requests, taxpayers are encouraged to
submit additional information by fax as soon as the information is available. The
Service representative who requests additional information can provide a telephone
number to which the information can be faxed. A copy of this information and a
signed perjury statement, however, must be mailed or delivered to the Service.
Address to send additional
information
(2)Additional information should be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Service
representative who requested
the information]
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
However, for cases involving a request for change in accounting method or period
under the jurisdiction of the Assistant Chief Counsel (Income Tax and Accounting),
and a request for an extension of time under §301.9100–1 on such cases, the
additional information should be sent to:
Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Service
representative who requested
the information]
P.O. Box 14095
Ben Franklin Station
Washington, DC 20044
For all cases, the additional information should include the name, office symbols,
and room number of the Service representative who requested the information, and the
taxpayer’s name and the case control number, which the Service representative can
provide.
21-day period will be extended
if justified and approved
(3)An extension of the 21-day period will be granted only if justified in writing by
the taxpayer and approved by the branch chief, senior technician reviewer (or senior
technical reviewer), or assistant to the branch chief (or assistant branch chief) of the
branch to which the case is assigned. A request for 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
national office within the 21-day period that there is a problem and that the written
request for extension will be coming soon. The taxpayer will be told promptly, and

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later in writing, of the approval or denial of the requested extension. If the extension
request is denied, there is no right of appeal.
If taxpayer does not submit
additional information
(4)If the taxpayer does not follow the instructions for submitting additional
information or requesting an extension within the time provided, a letter ruling will be
issued on the basis of the information on hand or, if appropriate, no letter ruling will
be issued. When the Service decides not to issue a letter ruling because essential
information is lacking, the case will be closed and the taxpayer notified in writing. If
the Service receives the information after the letter ruling request is closed, the
request may be reopened and treated as a new request. However, the taxpayer must
pay another user fee before the case can be reopened.
Schedules a conference if
requested by taxpayer
.08A taxpayer may request a conference regarding a letter ruling request.
Normally, a conference is scheduled only when the national 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 section 8.02(6) 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 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 Service’s
approval or denial of the request for extension are the same as those explained in
section 10.07(3) of this revenue procedure regarding providing additional information.
Permits taxpayer one conference
of right
.09A taxpayer is entitled, as a matter of right, to only one conference in the
national office, except as explained under section 10.12 of this revenue procedure.
This conference normally will be held at the branch level and will be attended by a
person who, at the time of the conference, has the authority to sign the letter ruling in
his or her own name or for the branch chief.
When more than one branch has taken an adverse position on an issue in a letter
ruling request or when the position ultimately adopted by one branch will affect that
adopted by another, a representative from each branch with the authority to sign in his
or her own name or for the branch chief will attend the conference. If more than one
subject is to be discussed at the conference, the discussion will constitute a conference
on each subject.
To have a thorough and informed discussion of the issues, the conference usually
will be held after the branch has had an opportunity to study the case. However, 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 assistant chief
counsel or to any other official of the Service. But see section 10.12 of this revenue
procedure for situations in which the Service may offer additional conferences.
In employment tax matters, only the party entitled to the letter ruling is entitled to a
conference. See section 5.09 of this revenue procedure.
Disallows verbatim recording of
conferences
.10Because 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
.11The senior Service representative present at the conference ensures that the
taxpayer has the opportunity to present views on all the issues in question. A Service
representative explains the Service’s tentative decision on the substantive issues and
the reasons for that decision. If the taxpayer asks the Service to limit the retroactive
effect of any letter ruling or limit the revocation or modification of a prior letter
ruling, a Service representative will discuss the recommendation concerning this issue
and the reasons for the recommendation. The Service representatives will not make a
commitment regarding the conclusion that the Service will finally adopt.
May offer additional conferences.12The Service will offer the taxpayer an additional conference if, after the
conference of right, an adverse holding is proposed, but on a new issue, or on the
same issue but on different grounds from those discussed at the first conference. There
is no right to another conference when a proposed holding is reversed at a higher level

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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 Service from offering additional conferences, including conferences with
an official higher than the branch level, if the Service decides they are needed. Such
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 Service 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
.13The taxpayer should furnish to the national 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. See section 10.07 of this revenue procedure for instructions on submission
of additional information. 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.
Procedures for requesting an extension of the 21-day period and notifying the
taxpayer or the taxpayer’s representative of the Service’s approval or denial of the
requested extension are the same as those stated in section 10.07(3) of this revenue
procedure regarding submitting additional information.
May schedule pre-submission
conference
.14Sometimes it will be advantageous to both the Service 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. Such conferences
are held only when the taxpayer actually intends to make a request and only on a
time-available basis. Generally, the taxpayer will be asked to provide a draft of the
letter ruling request or other detailed written description of the proposed transaction
before the pre-submission conference.
Any discussion of substantive issues at a pre-submission conference is advisory
only, is not binding on the Service, and cannot be relied upon as a basis for obtaining
retroactive relief under the provisions of §7805(b). A letter ruling request submitted
following a pre-submission conference will not necessarily be assigned to the branch
that held the pre-submission conference.
May, under limited
circumstances, schedule a
conference to be held by
telephone
.15Infrequently, taxpayers request that their conference of right 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. If a taxpayer makes such a request, the branch chief,
senior technician reviewer (or senior technical reviewer), or assistant to the branch
chief (or assistant branch chief) of the branch to which the case is assigned will
decide if it is appropriate in the particular case to hold the conference of right by
telephone. If the request is approved, the taxpayer will be advised when to call the
Service representatives (not a toll-free call).
May request draft of proposed
letter ruling near the completion
of the ruling process
.16To accelerate issuance of letter rulings, in appropriate cases near the completion
of the ruling process, the Service representative may request that the taxpayer or the
taxpayer’s representative submit a proposed draft of the letter ruling on the basis of
discussions of the issues. The taxpayer, however, is not required to prepare a draft
letter ruling to receive a letter ruling.
The format of the submission should be discussed with the Service representative
who requests the draft letter ruling. The representative usually can provide a sample
format of a letter ruling and will discuss the facts, analysis, and letter ruling language
to include.
Taxpayer may also submit draft
on a word processing disk
In addition to a typed draft, taxpayers are encouraged to submit this draft on a disk
in a word processing format. The typed draft will become part of the permanent files
of the national office, and the word processing disk will not be returned. If the Service
representative requesting the draft letter ruling cannot answer specific questions about
the format of the word processing disk, the questions can be directed to Wayne
Thomas at 202-622-7560 or Roberta Hardaker at 202-622-3563 (not toll-free calls).

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The proposed letter ruling (both typed draft and word processing disk) should be
sent to the same address as any additional information and contain in the transmittal
the information that should be included with any additional information (for example,
a penalties of perjury statement is required). See section 10.07 of this revenue
procedure.
Advises the taxpayer of
conclusions and, if the Service
will rule adversely, offers the
taxpayer the opportunity to
withdraw the letter ruling request
.17Generally, before the letter ruling is issued, the branch representative will
inform the taxpayer or the taxpayer’s representative of the Service’s conclusions. If
the Service is going to rule adversely, the taxpayer will be offered the opportunity to
withdraw the letter ruling request. If the taxpayer or the taxpayer’s representative does
not promptly notify the branch representative of a decision to withdraw the ruling
request, the adverse letter ruling will be issued. The user fee will not be refunded for
a letter ruling request that is withdrawn. See section 8.07 of this revenue procedure.
SECTION 11. WHAT EFFECT WILL
A LETTER RULING HAVE?
May be relied on subject to
limitations
.01A taxpayer ordinarily may rely on a letter ruling received from the Service
subject to the conditions and limitations described in this section.
Will not apply to another
taxpayer
.02A taxpayer may not rely on a letter ruling issued to another taxpayer. See
§ 6110(j)(3).
Will be used by a district
director in examining the
taxpayer’s return
.03When determining a taxpayer’s liability, the district director 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 reflected an accurate
statement of the material 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 district director finds that a letter ruling
should be revoked or modified, the findings and recommendations of the district
director will be forwarded to the national office for consideration before further action
is taken by the district director. Such a referral to the national office will be treated as
a request for technical advice and the provisions of Rev. Proc. 96–2 will be followed.
Otherwise, the letter ruling is to be applied by the district director in the determination
of the taxpayer’s liability. Appropriate coordination with the national office will be
undertaken if any field official having jurisdiction over a return or other matter
proposes to reach a conclusion contrary to a letter ruling previously issued to the
taxpayer.
May be revoked or modified if
found to be in error
.04Unless 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 statute
of limitations 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 due to—
(1)a notice to the taxpayer to whom the letter ruling was issued;
(2)the enactment of legislation or ratification of a tax treaty;
(3)a decision of the United States Supreme Court;
(4)the issuance of temporary or final regulations; or
(5)the issuance of a revenue ruling, revenue procedure, notice, or other statement
published in the Internal Revenue Bulletin.
Consistent with these provisions, if a letter ruling relates to a continuing action or a
series of actions, it ordinarily will be applied until any one of the events described
above occurs or until it is specifically withdrawn.
Publication of a notice of proposed rulemaking will not affect the application of any
letter ruling issued under this revenue procedure.

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Not generally revoked or
modified retroactively
.05Except in rare or unusual circumstances, the revocation or modification of a
letter ruling will 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 misstatement or omission of material facts;
(2)the facts at the time of the transaction are not materially different from the facts
on which the letter ruling was based;
(3)there has been no change in the applicable law;
(4)the letter ruling was originally issued for a proposed transaction; and
(5)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. However,
the tax liability of a member of an industry is not directly involved in a letter ruling
issued to another member and, therefore, the holding in a revocation or modification
of a letter ruling to one member of an industry may be retroactively applied to other
members of the industry. 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 letter with retroactive effect, the letter
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
.06A 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. And, 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 (5) in section 11.05 of this
revenue procedure are met.
However, if a letter ruling on a transaction is later found to be in error or no longer
in accord with the position of the Service, it will not protect a similar transaction of
the taxpayer in the same year or later year.
Retroactive effect of revocation
or modification applied to a
continuing action or series of
actions
.07If 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 Associate Chief Counsel (Domestic), the Associate Chief Counsel
(Employee Benefits and Exempt Organizations), the Associate Chief Counsel
(Enforcement Litigation), or the Associate Chief Counsel (International), as
appropriate, 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. However, 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, 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. However,
the limitation would be conditioned on the employer furnishing wage data, as may be
required by §31.6011(a)–1 of the Employment Tax Regulations.

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Generally not retroactively
revoked or modified if related to
sale or lease subject to excise
tax
.08A 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. (Section 1108(b), Revenue Act of 1926.)
May be retroactively revoked or
modified when transaction is
entered into before the issuance
of the letter ruling
.09A 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.
May be retroactively revoked or
modified when transaction is
entered into after a change in
material facts
.10If a letter ruling is issued covering a particular transaction and the material
facts on which the letter ruling is based are later changed, a taxpayer is not protected
against retroactive revocation or modification of the letter ruling when the transaction
is completed after the change in the material facts. Similarly, a taxpayer is not
protected against retroactive revocation or modification of a letter ruling involving a
continuing action or a series of actions occurring after the material facts on which the
letter ruling is based have changed.
Taxpayer may request that
retroactivity be limited
.11Under §7805(b), the Service may prescribe any extent to which a revocation or
modification of a letter ruling or determination letter will be applied without
retroactive effect.
A taxpayer to whom a letter ruling or determination letter has been issued may
request that the Associate Chief Counsel (Domestic), the Associate Chief Counsel
(Employee Benefits and Exempt Organizations), the Associate Chief Counsel
(Enforcement Litigation), or the Associate Chief Counsel (International), as
appropriate, limit the retroactive effect of any revocation or modification of the letter
ruling or determination letter.
Format of request(1)Request for relief under §7805(b) must be made in required format.
A request to limit the retroactive effect of the revocation or modification of a letter
ruling must be in the general form of, and meet the general requirements for, a letter
ruling request. These requirements are given in section 8 of this revenue procedure.
Specifically, the request must also—
(a)state that it is being made under §7805(b);
(b)state the relief sought;
(c)explain the reasons and arguments in support of the relief requested (including a
discussion of the five items listed in section 11.05 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.
However, when notice is given by the district director during an examination of the
taxpayer’s return or by the chief, appeals office, during consideration of the taxpayer’s
return before an appeals office, a request to limit retroactive effect must be made in
the form of a request for technical advice as explained in section 17.04 of Rev. Proc.
96–2.
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.

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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 national office as explained in sections
10.09, 10.11, and 10.12 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 10.09 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
Service 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. WHAT EFFECT WILL
A DETERMINATION LETTER HAVE?
Has same effect as a letter
ruling
.01A determination letter issued by a district director has the same effect as a
letter ruling issued to a taxpayer under section 11 of this revenue procedure.
If a district director proposes to reach a conclusion contrary to that expressed in a
determination letter, he or she need not refer the matter to the national office as is
required for a letter ruling found to be in error. However, the district director must
refer the matter to the national office if the district director desires to have the
revocation or modification of the determination letter limited under §7805(b).
Taxpayer may request that
retroactive effect of revocation
or modification be limited
.02A district director does not have authority under §7805(b) to limit the
revocation or modification of the determination letter. Therefore, if a district director
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
district director who issued the determination letter to seek technical advice from the
national office. See section 17.02(2) of Rev. Proc. 96–2.
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 17.04 of Rev. Proc. 96–2. 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 the five items listed in section 11.05 of this revenue procedure and any
other factors as they relate to the taxpayer’s particular situation); and
(d)include any documents bearing on the request.
Request for conference(2)Taxpayer may request a conference on application of §7805(b).
When technical advice is requested regarding the application of §7805(b), the
taxpayer has the right to a conference in the national office to the same extent as does
any taxpayer who is the subject of a technical advice request. See sections 12 and
17.05 of Rev. Proc. 96–2.
SECTION 13. UNDER WHAT
CIRCUMSTANCES ARE MATTERS
REFERRED BETWEEN A DISTRICT
OFFICE AND THE NATIONAL
OFFICE?
Requests for determination letters.01Requests for determination letters received by district directors that, under the
provisions of this revenue procedure, may not be issued by a district office, will be
forwarded to the national office for reply. The district office will notify the taxpayer
that the matter has been referred.
District directors will also refer to the national office any request for a
determination letter that in their judgment should have the attention of the national
office.

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No-rule areas.02If 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 the national office.
The district office will notify the taxpayer that the Service will not issue a letter ruling
or a determination letter on the issue. See section 7 of this revenue procedure for a
description of no-rule areas.
Requests for letter rulings.03Requests for letter rulings received by the national office that, under section 5
of this revenue procedure, may not be acted upon by the national office will be
forwarded to the district 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 7 of this revenue procedure and the Service
decides not to issue a letter ruling or an information letter, the national office will
notify the taxpayer and will then forward the request to the appropriate district office
for association with the related return.
SECTION 14. WHAT ARE THE
USER FEE REQUIREMENTS FOR
REQUESTS FOR LETTER RULINGS
AND DETERMINATION LETTERS?
Legislation authorizing user fees.01Section 10511 of the Revenue Act of 1987, Pub. L. No. 100–203, 101 Stat.
1330–382, 1330–446, enacted December 22, 1987, as amended by §11319 of the
Omnibus Budget Reconciliation Act of 1990, 1991–2 C.B. 481, 511, enacted
November 5, 1990, and by §743 of the Uruguay Round Agreements Act, 1995–1
C.B. 230, 239, enacted December 8, 1994 (hereafter the three laws are referred to
together as the ‘‘Act’’), 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 similar
requests. The fees apply to requests made on or after February 1, 1988, and before
October 1, 2000. 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 and 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 must not be less than the
amount specified in the Act.
Requests to which a user fee
applies
.02In general, user fees apply to all requests for—
(1)letter rulings, determination letters, and advance pricing agreements;
(2)closing agreements described in paragraph (A)(2)(e) of Appendix A of this
revenue procedure;
(3)renewal of advance pricing agreements; and
(4)reconsideration of letter rulings or determination letters.
Requests to which a user fee applies must be accompanied by the appropriate fee as
determined from the fee schedule provided in Appendix A of this revenue procedure.
The fee may be refunded as provided in section 14.09 of this revenue procedure.
Requests to which a user fee
does not apply
.03User fees do not apply to—
(1)elections made pursuant to section 4 of Rev. Proc. 92–85, pertaining to
automatic extensions of time under §301.9100–1 (see section 5.02 of this revenue
procedure);
(2)requests for information letters; or
(3)requests for a change in accounting period or accounting method permitted to
be made by a published automatic change revenue procedure or notice (see section
9.03 of this revenue procedure).
Exemptions from the user fee
requirements
.04The user fee requirements do not apply to—
(1)departments, agencies, or instrumentalities of the United States that 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

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(2)requests as to whether a worker is an employee for federal employment taxes
and income tax withholding purposes (chapters 21, 22, 23, and 24 of subtitle C of the
Code) submitted on Form SS–8, Information for Use in Determining Whether a
Worker Is an Employee for Federal Employment Taxes and Income Tax Withholding,
or its equivalent.
Fee schedule.05The schedule of user fees is provided in Appendix A. See Rev. Proc. 96–8 for
the user fee requirements applicable to requests for letter rulings, determination letters,
etc., under the jurisdiction of the Assistant Commissioner (Employee Plans and
Exempt Organizations).
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 of the offices within the Service (for example, one
issue is under the jurisdiction of the Associate Chief Counsel (Domestic) and another
issue is under the jurisdiction of the Assistant Commissioner (Employee Plans and
Exempt Organizations)), only one fee applies, namely the highest fee that otherwise
would apply to each of the offices involved. See Rev. Proc. 96–8 for the user fees
applicable to issues under the jurisdiction of the Assistant Commissioner (Employee
Plans and Exempt Organizations).
(2)Requests involving several fee categories. If a request dealing with only one
transaction involves more than one fee category, only one fee applies, namely 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 accounting method
dealing with only one item or sub-method 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, namely
the fee that applies to the particular category or subcategory involved. The addition of
a new issue relating to the same transaction or item will not result in an additional
fee, unless the issue places the transaction or item in a higher fee category.
(4)Requests involving several unrelated transactions. If a request involves several
unrelated transactions, a request for a change in accounting method involves several
unrelated items or sub-methods 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
or item. An additional fee will apply if the request is changed by the addition of an
unrelated transaction or item not contained in the initial request.
(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. In certain situations, however, a reduced user fee may be charged. See
paragraph (A)(4) of Appendix A of this revenue procedure.
Method of payment.07Each request to the Service for a letter ruling, determination letter, advance
pricing agreement, closing agreement described in paragraph (A)(2)(e) of Appendix A
of this revenue procedure, or reconsideration of a letter ruling or determination letter
must be accompanied by a check or money order, payable to the Internal Revenue
Service, in the appropriate amount. (However, the user fee check or money order
should not be attached to the Form 2553, Election by a Small Business Corporation,
when it is filed at the Service Center. If on the Form 2553 the corporation requests a
ruling that it be permitted to use a fiscal year under section 6.03 of Rev. Proc. 87–32,
the Service Center will forward the request to the national office. When the national
office receives the Form 2553 from the Service Center, it will notify the taxpayer that
the fee is due.) Taxpayers should not send cash.
Effect of nonpayment or payment
of incorrect amount
.08If a request is not accompanied by a properly completed check or money order
or is accompanied by a check or money order for less than the correct amount, the
respective 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 return immediately the request. If a request is not immediately returned,
the taxpayer will be contacted and given a reasonable amount of time to submit the

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proper fee. If the proper fee is not received within a reasonable amount of time, the
entire request will then be returned. However, 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 days of the date of
the cover letter returning the request.
If a request is accompanied by a check or money order for more than the correct
amount, the request will be accepted and the amount of the excess payment will be
returned to the taxpayer.
Refunds of user fee.09In general, the fee will not be refunded unless the Service declines to rule on
all issues for which a ruling is requested.
(1)The following situations are examples of situations in which the fee will not
be refunded:
(a)The request for a letter ruling, determination letter, etc., is withdrawn at any
time subsequent to its receipt by the Service, unless the only reason for withdrawal is
that the Service has advised the taxpayer that a higher user fee than was sent with the
request is applicable and the taxpayer is unwilling to pay the higher fee.
(b)The request is procedurally deficient, although accompanied by the proper fee
or an overpayment, and is not timely perfected by the requester. When there is a
failure to perfect timely the request, the case will be considered closed and the failure
to perfect will be treated as a withdrawal for purposes of this revenue procedure. See
section 10.06(3) of this revenue procedure.
(c)A letter ruling, determination letter, etc., is revoked in whole or in part at the
initiative of the Service. The fee paid at the time the original letter ruling,
determination letter, etc., was requested will not be refunded.
(d)The request contains several issues, and the Service rules on some, but not all,
of the issues. The highest fee applicable to the issues on which the Service rules will
not be refunded.
(e)The taxpayer asserts that a letter ruling the taxpayer received covering a single
issue is erroneous or not responsive (other than an issue on which the Service has
declined to rule) and requests reconsideration. The Service, upon reconsideration, does
not agree that the letter ruling is erroneous or is not responsive. The fee
accompanying the request for reconsideration will not be refunded.
(f)The situation is the same as described in paragraph (e) of this section 14.09(1)
except that the letter ruling covered several unrelated transactions. The Service, upon
reconsideration, does not agree with the taxpayer that the letter ruling is erroneous or
is not responsive for all of the transactions, but does agree that it is erroneous as to
one transaction. The fee accompanying the request for reconsideration will not be
refunded except to the extent applicable to the transaction for which the Service
agrees the letter ruling was in error.
(g)The request is for a supplemental letter ruling, determination letter, etc.,
concerning a change in facts (whether significant or not) relating to the transaction on
which the Service ruled.
(h)The request is for reconsideration of an adverse or partially adverse letter ruling
or a final adverse determination letter, and the taxpayer submits arguments and
authorities not submitted before the original letter ruling or determination letter was
issued.
(2)The following situations are examples of situations in which the fee will be
refunded:
(a)In a situation to which section 14.09(1)(h) of this revenue procedure does not
apply, the taxpayer asserts that a letter ruling the taxpayer received covering a single
issue is erroneous or is not responsive (other than an issue on which the Service
declined to rule) and requests reconsideration. The Service agrees, upon reconsidera-
tion, that the letter ruling is erroneous or is not responsive. The fee accompanying the
taxpayer’s request for reconsideration will be refunded.

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(b)In a situation to which section 14.09(1)(h) of this revenue procedure does not
apply, the taxpayer requests a supplemental letter ruling, determination letter, etc., to
correct a mistake that the Service agrees it made in the original letter ruling,
determination letter, etc., such as a mistake in the statement of facts or in the citation
of a Code section. Once the Service agrees that it made a mistake, the fee
accompanying the request for the supplemental letter ruling, determination letter, etc.,
will be refunded.
(c)The taxpayer requests and is granted relief under §7805(b) in connection with
the revocation in whole or in part, of a previously issued letter ruling, determination
letter, etc. The fee accompanying the request for relief will be refunded.
(d)In a situation to which section 14.09(1)(d) of this revenue procedure applied,
the taxpayer requests reconsideration of the Service’s decision not to rule on an issue.
Once the Service agrees to rule on the issue, the fee accompanying the request for
reconsideration will be refunded.
Request for reconsideration of
user fee
.10A taxpayer that 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 not applicable or incorrect and wishes to receive a refund of all or part of the
amount paid (see section 14.09 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 address given in section 8.03 in this revenue procedure. Both the
incoming envelope and the letter requesting such reconsideration should be
prominently marked ‘‘USER FEE RECONSIDERATION REQUEST.’’ No user fee is
required for these requests. The request should be marked for the attention of:
If the matter involves primarily:Mark for the attention of:
Associate Chief Counsel
(Domestic) letter ruling requests
Assistant Chief Counsel () (Complete by using whichever of the following
designations applies.)
(Corporate)
(Financial Institutions and Products)
(Income Tax and Accounting)
(Passthroughs and Special Industries)
Associate Chief Counsel
(Employee Benefits & Exempt
Organizations) letter ruling
requests
Assistant Chief Counsel (Employee Benefits & Exempt Organizations)
Associate Chief Counsel
(Enforcement Litigation) letter
ruling requests
Assistant Chief Counsel (General Litigation)
Associate Chief Counsel
(International) letter ruling and
advance pricing agreement
requests
Assistant Chief Counsel (International)
Determination letter requests
submitted pursuant to this
revenue procedure
Chief, Examination Division,
District Office
(Add name of district office handling the request.)
SECTION 15. WHAT SIGNIFICANT
CHANGES HAVE BEEN MADE TO
REV. PROC. 95–1?
.01Section 2.04 is amended to provide that a taxpayer should provide a daytime
telephone number in a request for an information letter.
.02Sections 3.01(2), (3), and (4) are amended to reflect the change in jurisdiction
involving requests for a change in accounting method.
.03Section 5.01(3) is amended to conform with Rev. Proc. 95–10, providing that
the national office will consider letter ruling requests concerning the classification of a
domestic or foreign limited liability company as a partnership for federal tax purposes.
.04Sections 8.01(9)(c), (10), (12), and (13) are amended to clarify that a stamped
signature is not permitted.
.05Section 8.01(11)(d) is redesignated as section 8.01(11)(e) and new section
8.01(11)(d) is added to list an enrolled actuary as an authorized representative.

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.06If a taxpayer provides one penalties of perjury statement that refers to all
submissions of additional factual information, section 8.01(13) is amended to clarify
that this penalties of perjury statement is provided subsequent to all such submissions.
.07While a taxpayer generally is required to submit one copy of a letter ruling
request, section 8.01(14) is amended to provide that a taxpayer is encouraged to
submit additional copies of the request if more than one issue is presented.
.08Section 8.02(2)(b) is amended to conform to Form 2848, Power of Attorney and
Declaration of Representative, revised as of December 1995.
.09Section 9 is updated to reflect the revenue procedures and notices issued in
1995.
.10Section 10.17 is added to provide that generally, before the letter ruling is
issued, the branch representative will inform the taxpayer or the taxpayer’s
representative of the Service’s conclusions and, if the Service is going to rule
adversely, will offer the taxpayer the opportunity to withdraw the letter ruling request.
If the taxpayer or the taxpayer’s representative does not promptly notify the branch
representative of a decision to withdraw the ruling request, the adverse letter ruling
will be issued.
.11Section 14.09(2) is amended by adding a new example of a situation in which
the user fee will be refunded.
.12The user fee in Appendix A for advance pricing agreements and renewals is
increased. In addition, a new reduced user fee category for advance pricing
agreements and renewals is established in Appendix A for U.S. persons with gross
income of at least $100,000,000 and less than $1,000,000,000.
.13If a domestic partnership or corporation is not subject to tax, the reduced user
fee in Appendix A for domestic partnerships and corporations is amended to provide
that total income and cost of goods sold are the amounts that the domestic partnership
or corporation would have reported on the federal income tax return if the domestic
partnership or corporation were subject to tax.
SECTION 16. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
.01Rev. Proc. 95–1, 1995–1 C.B. 313, is superseded.
.02Rev. Proc. 91–22, 1991–1 C.B. 526, is modified by deleting all references to
Rev. Proc. 87–4, Rev. Proc. 88–4, and Rev. Proc. 90–17 and replacing them with
references to this revenue procedure, and by substituting for the user fee that Rev.
Proc. 91–22 provides for, the corresponding user fee set forth in this revenue
procedure.
.03Rev. Proc. 92–20, 1992–1 C.B. 685, is modified by deleting all references to
Rev. Proc. 90–17 and replacing them with references to this revenue procedure for
requests for changes in accounting method under the jurisdiction of the Associate
Chief Counsel (Domestic).
.04Rev. Proc. 92–85, 1992–2 C.B. 490, is modified. Section 5.02(2) of Rev. Proc.
92–85 is amended to read as follows:
Ordinarily, the Service will not grant relief when tax years that would have
been affected by the election had it been timely made are closed by the period
of limitations on assessment under §6501(a) before receipt of a §301.9100–1
ruling. Consequently, if necessary, a taxpayer requesting relief must secure a
consent under §6501(c)(4) to extend the period of limitations on assessment.
The filing of a request for relief under §301.9100–1 does not suspend the
running of any applicable period of limitations. In addition, the filing of a claim
for refund under §6511 does not extend the period of limitations on assessment.
The Service may condition a grant of relief on the taxpayer providing the
Service with a statement from an independent auditor (other than an auditor
providing an affidavit pursuant to section 6.06 of this revenue procedure)
certifying that the requirements of section 5.02(1) of this revenue procedure are
satisfied.
SECTION 17. WHAT IS THE
EFFECTIVE DATE OF THIS
REVENUE PROCEDURE?
This revenue procedure is effective January 2, 1996, except that any increase in the
user fee in Appendix A and any changes made to the procedural matters in paragraph
(B) of Appendix A are effective only for requests postmarked or, if not mailed,
received on or after January 8, 1996.

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DRAFTING INFORMATIONThe principal author of this revenue procedure is Kathleen Reed of the Office of
Assistant Chief Counsel (Passthroughs and Special Industries). For further information
regarding this revenue procedure for matters under the jurisdiction of—
(1)the Associate Chief Counsel (Domestic) or the Associate Chief Counsel
(Employee Benefits and Exempt Organizations), contact Ms. Reed on (202) 622-3110
(not a toll-free call);
(2)the Associate Chief Counsel (International), contact Gerard Traficanti on (202)
622-3830 (not a toll-free call); or
(3)the Associate Chief Counsel (Enforcement Litigation), contact Peter J. Devlin
on (202) 622-3600 (not a toll-free call).
For further information regarding user fees, contact Wayne Thomas on (202)
622-7560 (not a toll-free call).

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INDEX
References are to sections in Rev. Proc. 96–1
Additional Information
—perjury statement required...................................................................... 10.07(1)
—proposed deletions under §6110................................................................. 8.01(9)
—requested during initial contact.................................................................... 10.06
failure to submit............................................................................ 10.06(3)
—subsequent requests.............................................................................. 10.07
after conference............................................................................... 10.13
failure to submit............................................................................ 10.07(4)
—where to send................................................................................ 10.07(2)
Changes in Accounting Method or Period
—automatic change revenue procedures................................................................ 9.03
—sections of Rev. Proc. 96–1 applicable to requests.................................................... 9.01
—user fees.............................................................................. 14, Appendix A
Checklist Required..................................................................... 8.01(16), Appendix C
Conferences
—offered................................................................................... 10.04, 10.09
after conference of right........................................................................ 10.12
application of §6110........................................................................ 8.01(9)
—requesting a conference........................................................................ 8.02(6)
—scheduling................................................................................ 10.08, 10.09
application of §7805(b)............................................................. 11.11(2), 12.02(2)
pre-submission conferences...................................................................... 10.14
telephone conferences.......................................................................... 10.15
Definitions
—closing agreement................................................................................. 2.02
—determination letter.............................................................................. 2.03
—information letter................................................................................. 2.04
—letter ruling..................................................................................... 2.01
—national office...................................................................................... 1
—revenue ruling.................................................................................... 2.05
—taxpayer............................................................................................ 1
Determinations Under §999(d).......................................................................... 5.03
Discussions Not Binding on Service
—at pre-submission conference...................................................................... 10.14
—informal opinion expressed....................................................................... 10.05
—oral advice to taxpayers......................................................................... 2.06(2)
Employee Plans and Exempt Organizations
—jurisdiction of Assistant Commissioner
(Employee Plans and Exempt Organizations)....................................................... 4.02
—user fees........................................................................................ 4.02
Estate Tax Matters
—issuance of determination letters............................................................... 6.02, 6.06
—issuance of letter rulings.......................................................................... 5.05
under §2032A(c)............................................................................... 5.06
Expeditious Handling of Letter Ruling and Determination Letter Requests.................................. 8.02(4)

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Extension of Time
—to schedule conference........................................................................... 10.08
—to submit additional information.................................................. 10.06(2), 10.07(3), 10.13
Fax Transmission
—to receive letter ruling.......................................................................... 8.02(5)
—to submit additional information................................................................. 10.07(1)
—to submit letter ruling request................................................................... 8.02(5)
Hand Delivery of Letter Ruling Requests............................................................... 8.03(1)
No-Rule Areas........................................................................................... 7
Oral Advice to Taxpayers.............................................................................. 2.06
Penalties of Perjury Statement
— form......................................................................................... 8.01(13)
—required with additional information............................................................. 10.07(1)
—required with draft letter ruling................................................................... 10.16
—signature requirements......................................................................... 8.01(13)
Pending Letter Ruling Requests
—when to attach a copy to return.................................................................... 8.04
estate tax matters............................................................................... 5.05
—when to notify national office...................................................................... 8.04
estate tax matters............................................................................... 5.05
Power of Attorney
—Form 2848........................................................................ 8.01(12) and 8.02(2)
copies sent to multiple representatives........................................................ 8.02(2)(a)
original sent to representative............................................................... 8.02(2)(b)
no copy sent to representatives.............................................................. 8.02(2)(c)
—signature requirements........................................................................ 8.01(12)
Public Disclosure Under §6110...................................................................... 8.01(9)
—signature requirements........................................................................ 8.01(9)(c)
Representatives
—compliance with Treasury Department
Circular No. 230............................................................................... 8.08
—power of attorney required..................................................................... 8.01(12)
—requirements.................................................................................. 8.01(11)
employee, general partner, administrator........................................................ 8.01(11)
foreign representative........................................................................ 8.01(11)
Retroactive Revocation or Modification
—of determination letter.............................................................................. 12
request to limit retroactive effect................................................................ 12.02
—of letter ruling............................................................................. 11.03–11.10
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....................................................... 8.01(15), Appendix B
Section 301.9100-1 Relief............................................................................. 5.02
Section 367 Rulings................................................................................... 5.04
Status of Letter Ruling and Determination Letter Requests................................................. 8.06

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User Fees
—schedule of user fees...................................................................... Appendix A
—user fees requirements.............................................................................. 14
to reopen case..................................................................... 10.06(3), 10.07(4)
Where to Send
—determination letter request...................................................................... 8.03(2)
—letter ruling request............................................................................. 8.03(1)
additional information........................................................................ 10.07(2)
hand delivery................................................................................ 8.03(1)
Withdrawal of Letter Ruling and Determination Letter Requests............................................. 8.07

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APPENDIX A
SCHEDULE OF USER FEES
(A)FEE SCHEDULE
CATEGORYFEE
(1)User fee for a determination letter request. The user fee for each determination letter request governed by
this revenue procedure.$275
(2)User fee for a request for a letter ruling or closing agreement. Except for reduced fees provided in
paragraph (A)(3) and (4) of this appendix and exemptions provided in section 14.04 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 (Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate
Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel (International) is as follows:
(a)Accounting periods
(i)Forms 1128 and 2553$200
(ii)Letter ruling requests for extensions of time to file Form 1128 under §301.9100–1$275
(b)Changes in Accounting Methods
(i)Form 3115 (except as provided in paragraph (A)(3)(a), (b), (c), or (d), or (4)(b) of this appendix)$900
(ii)Except as provided in paragraph (A)(4)(c) of this appendix, letter ruling requests for extensions of time
to file Form 3115 under §301.9100–1$275
NOTE: A taxpayer that receives an extension of time under §301.9100–1 will be charged a separate user
fee for the accounting period or accounting method application. No user fee is required if the change in
accounting period or accounting method is permitted to be made pursuant to a published automatic change
revenue procedure or notice. See section 9.03 of this revenue procedure for the list of automatic change
revenue procedures and notices published and in effect as of December 31, 1995.
(c)Requests for advance pricing agreements and renewals (except as provided in paragraph (A)(3)(e) or (f) of
this appendix)$25,000
(d)All other letter ruling requests (which includes accounting period and accounting method requests other
than those properly submitted on Form 1128, 2553, or 3115) (except as provided in paragraph (A)(3)(a),
(b), (c), or (d), or (4)(a) of this appendix)$3,575
(e)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)(3)(a), (b), (c), or (d) of this appendix)$3,575
(3)Reduced user fee for a request for a letter ruling or closing agreement. A reduced user fee is provided in
the following situations if the person provides the certification described in paragraph (B)(1) of this appendix:
(a)U.S. citizens and resident alien individuals, domestic trusts, and domestic estates with gross income (as
determined under paragraph (B)(2) and (4) of this appendix) of less than $150,000$500
(b)Nonresident alien individuals, foreign trusts, and foreign estates with gross income (as determined under
paragraph (B)(3) and (4) of this appendix) of less than $150,000$500
(c)Domestic partnerships and corporations with gross income (as determined under paragraph (B)(5) of this
appendix) of less than $150,000$500
(d)Organizations exempt from income tax under ‘‘Subchapter F-Exempt Organizations’’ of the Code with
gross receipts (as determined under paragraph (B)(6) of this appendix) of less than $150,000$500
(e)Requests for advance pricing agreements and renewals from U.S. persons with gross income (as
determined under paragraph (B)(7) of this appendix) of at least $100,000,000 and less than $1,000,000,000$15,000
(f)Requests for advance pricing agreements and renewals from U.S. persons with gross income (as
determined under paragraph (B)(7) of this appendix) of less than $100,000,000$5,000
(4)Reduced user fee for substantially identical letter ruling requests or identical accounting method changes.
A reduced user fee is provided in the following situations if the requirements of Rev. Proc. 92–90, 1992–2 C.B.
501, are satisfied:
(a)Substantially identical letter rulings requested
Situations in which a taxpayer requests substantially identical letter rulings for multiple entities with a
common member or sponsor, or for multiple members of a common entity, for each additional letter ruling
request after the $3,575 fee or $500 reduced fee, as applicable, has been paid for the first letter ruling
request$150

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(b)Identical accounting method change requested on a single Form 3115
Situations in which a parent corporation requests the identical accounting method change on a single Form
3115 on behalf of more than one member of a consolidated group, for each additional member of the group
seeking the identical accounting method change on the same Form 3115 after the $900 fee or $500 reduced
fee, as applicable, has been paid for the first member of the group$50
(c)Extension of time requested to file Form 3115 for an identical accounting method change
Situations in which a parent corporation requests an extension of time to file Form 3115 under §301.9100–
1 for the identical accounting method change on behalf of more than one member of a consolidated group,
for each additional member of the group seeking the identical accounting method change on the same
application after the $275 fee has been paid for the first member of the group$50
NOTE: A parent corporation and each member of a consolidated group that is entitled to a reduced user fee
under paragraph (A)(4)(b) of this appendix, that receives an extension of time to file Form 3115 under
§ 301.9100-1 will be charged a separate user fee for the accounting method application.
(B)PROCEDURAL MATTERS
(1)Required certification. A person seeking a reduced user fee under paragraph (A)(3) 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)(3)(a), (b), or (c) of this appendix, the person must
certify in the request that his, her, or its gross income, as defined under paragraph (B)(2), (3), or (5) of this appendix, as
applicable, is less than $150,000 for the last full (12 months) taxable year ending before the date the request is filed.
(b)If an organization exempt from income tax under Subchapter F of the Code is seeking a reduced user fee under
paragraph (A)(3)(d) of this appendix, the organization must certify in its request that its gross receipts are less than $150,000
for the last full (12 months) taxable year ending before the date the request is filed.
(c)If a U.S. person is seeking a reduced user fee under paragraph (A)(3)(e) of this appendix, the U.S. person must certify
in its request for an advance pricing agreement and renewal that its gross income, as defined under paragraph (B)(7) of this
appendix, is at least $100,000,000 and less than $1,000,000,000 for the last full (12 months) taxable year ending before the
date the request is filed.
(d)If a U.S. person is seeking a reduced user fee under paragraph (A)(3)(f) of this appendix, the U.S. person must certify
in its request for an advance pricing agreement and renewal that its gross income, as defined under paragraph (B)(7) of this
appendix, is less than $100,000,000 for the last full (12 months) taxable year ending before the date the request is filed.
(2)Gross income of U.S. citizens and resident alien individuals, domestic trusts, and domestic estates. For purposes of
the reduced user fee provided in paragraph (A)(3)(a) of this appendix for U.S. citizens and resident alien individuals,
domestic trusts, and domestic estates, ‘‘gross income’’ is equal to ‘‘total income’’ as reported on their last federal income
tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus any interest
income not subject to tax under §103 (interest on state and local bonds) for that period. ‘‘Total income’’ is a line item on
federal tax returns. For example, if the 1994 Form 1040, U.S. Individual Income Tax Return, is the most recent 12-month
taxable year return filed by a U.S. citizen, ‘‘total income’’ on the Form 1040 is the amount entered on line 22.
In the case of a request for a letter ruling or closing agreement from a domestic estate or trust that, at the time the request
is filed, has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(3)(a) of this
appendix will apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the
last federal income tax return filed for a full taxable year ending before the date of death or the date of the transfer, taking
into account any additions required to be made to total income described in this paragraph (B)(2), is less than $150,000. 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 of nonresident alien individuals, foreign trusts, and foreign estates. For purposes of the reduced user fee
provided in paragraph (A)(3)(b) of this appendix for 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 1994 Form 1040NR, U.S.
Nonresident Alien Income Tax Return, is the most recent 12-month taxable year return filed by a nonresident alien
individual, ‘‘total effectively connected income’’ on the Form 1040NR is the amount entered on line 23.
In the case of a request for a letter ruling or closing agreement from a foreign estate or trust that, at the time the request is
filed, has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(3)(b) 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

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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) of this appendix or in this paragraph (B)(3), is less
than $150,000. 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.
(4)Special rules for determining gross income of individuals, trusts, and estates. For purposes of paragraph (B)(2) and (3)
of this appendix, the following rules apply for determining whether gross income is less than $150,000:
(a) 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 who is legally separated from his or her spouse if the spouses do not file a joint income tax return with each
other; and
(b) 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.
(5)Gross income of domestic partnerships and corporations. For purposes of the reduced user fee provided in paragraph
(A)(3)(c) of this appendix for domestic partnerships and corporations, ‘‘gross income’’ is equal to ‘‘total income’’ as
reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date
the request is filed, plus ‘‘cost of goods sold’’ as reported on the same federal income tax return, plus any interest income
not subject to tax under §103 (interest on state and local bonds) for that period. If a domestic partnership or corporation is
not subject to tax, ‘‘total income’’ and ‘‘cost of goods sold’’ are the amounts that the domestic partnership or corporation
would have reported on the federal income tax return if the domestic partnership or corporation were subject to tax.
‘‘Cost of goods sold’’ and ‘‘total income’’ are line items on federal tax returns. For example, if the 1994 Form 1065, U.S.
Partnership Return of Income, is the most recent 12-month taxable year return filed by a domestic partnership, ‘‘cost of
goods sold’’ and ‘‘total income’’ on the Form 1065 are the amounts entered on lines 2 and 8, respectively, and if the 1994
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.
The following rules apply in determining whether gross income is less than $150,000:
(a)In the case of a request for a letter ruling or closing agreement from a domestic corporation, the gross income (as
defined in this paragraph (B)(5)) of (i) all members of the applicant’s controlled group (as defined in §1563(a)), and (ii) any
related taxpayer that is involved in the transaction on which the letter ruling or closing agreement is requested, must be
combined; and
(b)In the case of a request for a letter ruling or closing agreement from a domestic partnership, the gross income (as
defined in this paragraph (B)(5)) 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.
If, at the time the request is filed, a domestic partnership or corporation subject to tax has not filed a federal income tax
return for a full taxable year, the reduced user fee in paragraph (A)(3)(c) of this appendix will apply if, in the aggregate, the
partners’ or the shareholders’ gross income (as defined in paragraph (B)(2), (3), or (5) of this appendix, as applicable) is less
than $150,000 for the last full 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.
(6)Gross receipts of an exempt organization. For purposes of the reduced user fee provided in paragraph (A)(3)(d) of this
appendix for organizations exempt from income tax under ‘‘Subchapter F-Exempt Organizations’’ of the Code, ‘‘gross
receipts’’ is 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. If there are two or more organizations exempt from income tax under Subchapter
F filing the request, the gross receipts of the applicants must be combined in determining whether gross receipts are less
than $150,000.
(7)Gross income of U.S. persons. For purposes of the reduced user fee provided in paragraph (A)(3)(e) or (f) of this
appendix for U.S. persons requesting advance pricing agreements and renewals, ‘‘gross income’’ is equal to ‘‘total income’’
as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus ‘‘cost of goods sold’’ as reported on the same federal income tax return, plus any interest
income not subject to tax under §103 (interest on state and local bonds) for that period. Gross income (as defined in this
paragraph (B)(7)) of all U.S. members of the controlled group must be combined in determining whether gross income is:
(a) at least $100,000,000 and less than $1,000,000,000 for purposes of the reduced user fee provided in paragraph (A)(3)(e)
of this appendix; and (b) less than $100,000,000 for purposes of the reduced user fee provided in paragraph (A)(3)(f) of this
appendix.

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APPENDIX B
SAMPLE FORMAT FOR A LETTER RULING REQUEST
INSTRUCTIONS
To assist you in preparing a letter ruling request, the Service is providing this sample format. You are not required to use
this sample format. If your request is not identical or similar to the sample format, the different format will not defer
consideration of your request.
(Insert the date of request)
Internal Revenue Service
Associate Chief Counsel (Insert one of
the following: Domestic, Employee Benefits
and Exempt Organizations, Enforcement
Litigation, or International)
Attn: CC:DOM:CORP:T
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
Dear Sir or Madam:
(Insert the name of the taxpayer) requests a ruling on the proper treatment of (insert the subject matter of the letter ruling
request) under section (insert the number) of the Internal Revenue Code.
[If the taxpayer is requesting expeditious handling, a statement to that effect must be attached to, or contained in, the
letter ruling request. The statement must explain the need for expeditious handling. See section 8.02(4) of Rev. Proc. 96–1,
1996–1 I.R.B. 8. Hereafter, all references are to Rev. Proc. 96–1 unless otherwise noted.]
A. STATEMENT OF FACTS
1.Taxpayer Information
[Provide the statements required by sections 8.01(1)(a), (b), and (c).]
2.Description of Taxpayer’s Business Operations
[Provide the statement required by section 8.01(1)(d).]
3.Facts Relating to Transaction
[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter
ruling request. This statement must include a detailed description of the transaction, including material facts in any
accompanying documents, and the business reasons for the transaction. See sections 8.01(1)(e), 8.01(1)(f), and 8.01(2).]
B. RULING REQUESTED
[The ruling request should contain a concise statement of the ruling requested by the taxpayer. It is preferred that the
language of the requested ruling be exactly the same that 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 encouraged to identify and discuss any
authorities believed to be contrary to the position advanced in the ruling request. See sections 8.01(6), 8.01(7), and 8.01(8).]
D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also is encouraged to
identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections
8.01(3), 8.01(6), 8.01(7), and 8.01(8).]
E. CONCLUSION
[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]
F. PROCEDURAL MATTERS
1.Revenue Procedure 96–1 Statements

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a.[Provide the statement required by section 8.01(4) regarding whether the same issue in the letter ruling request is in an
earlier return of the taxpayer or in a return for any year of a related taxpayer.]
b.[Provide the statement required by section 8.01(5)(a) regarding whether the Service previously ruled on the same or
similar issue for the taxpayer, a related taxpayer, or a predecessor.]
c.[Provide the statement required by section 8.01(5)(b) regarding whether the taxpayer, a related taxpayer, a predecessor,
or any representatives previously submitted a request 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 8.01(5)(c) regarding whether the taxpayer, a related taxpayer, or a
predecessor previously submitted a request involving the same or a similar issue that is currently pending with the Service.]
e.[Provide the statement required by section 8.01(5)(d) regarding whether, at the same time as this request, the taxpayer
or a related taxpayer is presently submitting another request involving the same or similar issue to the Service.]
f.[Provide the statement required by section 8.01(6) regarding whether the law in connection with the letter ruling request
is uncertain and whether the issue is adequately addressed by relevant authorities.]
g.[If the taxpayer determines that there are no contrary authorities, a statement to that effect would be helpful. See
section 8.01(7).]
h.[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 8.02(6).]
i.[If the taxpayer is requesting a copy of the letter ruling to be sent by facsimile (fax) transmission, the ruling request
should contain a statement to that effect. This statement must also contain a waiver of any disclosure violations resulting
from the fax transmission. See section 8.02(5).]
j.[If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a
statement to that effect. See section 8.02(1).]
2. Administrative
a.[The ruling request should state: ‘‘The deletions statement and checklist required by Rev. Proc. 96–1 are enclosed.’’
See sections 8.01(9) and 8.01(16).]
b.[The ruling request should state: ‘‘The required user fee of $(Insert the amount of the fee) is enclosed.’’ See section 14
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 8.01(11),
8.01(12), and 8.02(2).]
Very truly yours,
(Insert the name of the taxpayer or the taxpayer’s authorized representative)
By:
SignatureDate
Typed or printed name of
person signing request
DECLARATION: [See section 8.01(13).]
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best
of my knowledge and belief, the facts presented in support of the requested letter ruling are true, correct, and complete.
(Insert the name of the taxpayer)
By:
SignatureTitleDate
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 8.01(13).]

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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. To
ensure that your request is in order, use this checklist. Complete the five 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 either cause the return of your request or defer substantive consideration of your request. However, 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.
DISTRICT HAVING AUDIT JURISDICTION
ATTORNEY/P.O.A.
PRIMARY CODE SECTION
CIRCLE ONEITEM
YesNo1.Does your request involve an issue under the jurisdiction of the Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel
(Enforcement Litigation), or the Associate Chief Counsel (International)? See section 3 of Rev. Proc. 96–
1, 1996–1 I.R.B. 14. For issues under the jurisdiction of other offices, see section 4 of Rev. Proc. 96–1.
(Hereafter, all references are to Rev. Proc. 96–1 unless otherwise noted.)
YesNo2.Have you read Rev. Proc. 96–3, 1996–1 I.R.B. 82, and Rev. Proc. 96–7, 1996–1 I.R.B. 185, to see if
part or all of the request involves a matter on which letter rulings are not issued or are ordinarily not
issued?
YesNoN/A3.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 the Associate Chief Counsel (Domestic), the Office of the Associate
Chief Counsel (Employee Benefits and Exempt Organizations), the Office of the Associate Chief Counsel
(Enforcement Litigation), or the Office of the Associate Chief Counsel (International) 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 (Domestic) and the Office of Associate Chief Counsel
(Employee Benefits and Exempt Organizations), the appropriate branch to call may be obtained by calling
(202) 622-7560 (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) 622-3800 (not a toll-free call); or
(c)the Office of the Associate Chief Counsel (Enforcement Litigation), the appropriate branch to call
may be obtained by calling (202) 622-3600 (not a toll-free call).
YesNoN/A
Page
4.If the request deals with a completed transaction, have you filed the return for the year in which the
transaction was completed? See sections 5.01, 5.05, 5.06, 5.07, 5.08, and 5.09.
YesNo5.Are you requesting a letter ruling on a hypothetical situation or question? See section 7.02.
YesNo6.Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 7.02.
YesNo7.Are you requesting the letter ruling for only part of an integrated transaction? See sections 7.03 and
8.01(1).
YesNo8.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 5.11.

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YesNo9.Are you requesting the letter ruling for a foreign government or its political subdivision? See section
5.12.
YesNo
Pages
10.Have you included a complete statement of all the facts relevant to the transaction? See section
8.01(1).
YesNoN/A11.Have you submitted with the request true copies of all wills, deeds, and other documents relevant to
the transaction, and labelled and attached them in alphabetical sequence? See section 8.01(2).
YesNoN/A12.Have you submitted with the request certified English translations and a copy of all applicable foreign
laws? See section 8.01(2).
YesNo
Pages
13.Have you included, rather than merely incorporated by reference, all material facts from the
documents in the request? Are they accompanied by an analysis of their bearing on the issues that
specifies the document provisions that apply? See section 8.01(3).
YesNo
Page
14.Have you included the required statement regarding whether the same issue in the letter ruling request
is in an earlier return of the taxpayer or in a return for any year of a related taxpayer? See section 8.01(4).
YesNo
Page
15.Have you included the required statement regarding whether the Service previously ruled on the same
or similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 8.01(5)(a).
YesNo
Page
16.Have you included the required statement regarding whether the taxpayer, a related taxpayer, a
predecessor, or any representatives previously submitted a request involving the same or similar issue but
withdrew the request before the letter ruling or determination letter was issued? See section 8.01(5)(b).
YesNo
Page
17.Have you included the required statement regarding whether the taxpayer, a related taxpayer, or a
predecessor previously submitted a request involving the same or similar issue that is currently pending
with the Service? See section 8.01(5)(c).
YesNo
Page
18.Have you included the required statement regarding whether, at the same time as this request, the
taxpayer or a related taxpayer is presently submitting another request involving the same or similar issue
to the Service? See section 8.01(5)(d).
YesNo
Pages
19.Have you included the required statement of relevant authorities in support of your views? See section
8.01(6).
YesNo
Page
20.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 8.01(6).
YesNo
Pages
21.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 8.01(7), which states that taxpayers are encouraged to inform the Service of such
authorities.
YesNoN/A
Page
22.If you determined that there are no contrary authorities, have you included a statement to this effect in
your request? See section 8.01(7).
YesNoN/A
Page
23.Have you included in your request a statement identifying any pending legislation that may affect the
proposed transaction? See section 8.01(8).
YesNo24.Is the request accompanied by the deletions statement required by §6110? See section 8.01(9).
YesNo
Page
25.Have you (or your authorized representative) signed and dated the request? See section 8.01(10).
YesNoN/A26.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 8.01(12).
YesNo
Page
27.Have you included, signed, and dated the penalties of perjury statement in the form required by
section 8.01(13)?
YesNoN/A28.Are you submitting your request in duplicate if necessary? See section 8.01(14).
YesNoN/A
Pages
29.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 8.02(1).
YesNoN/A30.If you want copies of the letter ruling sent to more than one representative, does the power of
attorney contain a statement to that effect? See section 8.02(2)(a).
YesNoN/A31.If you want the original of the letter ruling to be sent to a representative, does the power of attorney
contain a statement to that effect? See section 8.02(2)(b).
YesNoN/A32.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 8.02(2)(c).
YesNoN/A33.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 8.02(3).

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YesNoN/A
Page
34.If you want your letter ruling request to be processed ahead of the regular order or by a specific date,
have you requested expeditious handling in the manner required by section 8.02(4) and stated a
compelling need for such action in the request?
YesNoN/A
Page
35.If you are requesting a copy of the letter ruling to be sent by facsimile (fax) transmission, have you
included a statement containing a waiver of any disclosure violations resulting from the fax transmission?
See section 8.02(5).
YesNoN/A
Page
36.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 8.02(6).
YesNo37.Have you included the correct user fee with the request and made your check or money order payable
to the Internal Revenue Service? See section 14 and Appendix A to determine the correct amount.
YesNoN/A
Page
38.If you qualify for the reduced user fee when gross income or gross receipts, as applicable, is less than
$150,000, have you included the required certification? See paragraphs (A)(3) and (B)(1) of Appendix A.
YesNoN/A
Page
39.If you qualify for the reduced user fee for substantially identical letter rulings, have you included the
information required by Rev. Proc. 92–90, 1992–2 C.B. 501? See paragraph (A)(4)(a) of Appendix A.
YesNoN/A
Page
40.If you qualify for the reduced user fee for a §301.9100–1 request to extend the time for filing an
identical accounting method change on a single Form 3115, have you included the information required by
Rev. Proc. 92–90? See paragraph (A)(4)(c) of Appendix A.
YesNoN/A41.If your request is covered by any of the guideline revenue procedures, safe harbor revenue
procedures, or other special requirements listed in section 9, have you complied with all of the
requirements of the applicable revenue procedure?
Rev. Proc.List other applicable revenue procedures, including checklists, used or relied upon in the preparation of
this letter ruling request (Cumulative Bulletin citation not required).
YesNoN/A
Page
42.If you are requesting relief under §7805(b) (regarding retroactive effect), have you complied with all
of the requirements in section 11.11?
YesNo43.Have you addressed your request to the Associate Chief Counsel (Domestic), the Associate Chief
Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel (Enforcement
Litigation), or the Associate Chief Counsel (International), as appropriate, at:
Internal Revenue Service
Attn: CC:DOM:CORP:T
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044?
The package should be marked: RULING REQUEST SUBMISSION. Improperly addressed requests may
be delayed (sometimes for over a week) in reaching CC:DOM:CORP:T for initial processing.
SignatureTitle or AuthorityDate
Typed or printed name of
person signing checklist

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26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement, determination of correct tax liability.
Rev. Proc. 96–2
TABLE OF CONTENTS
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
p. 62
SECTION 2. WHAT IS TECHNICAL
ADVICE?
p. 62
SECTION 3. ON WHAT ISSUES
MAY TECHNICAL ADVICE BE
REQUESTED UNDER THIS
PROCEDURE?
p. 63.01Issues under the jurisdiction of the Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee Benefits and Exempt Organiza-
tions), the Associate Chief Counsel (Enforcement Litigation), or the
Associate Chief Counsel (International)
.02Issues involving shipowners’ protection and indemnity associations and
certain homeowners associations
SECTION 4. ON WHAT ISSUES
MUST TECHNICAL ADVICE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
p. 63.01Alcohol, tobacco, and firearms taxes
.02Employee plans and exempt organizations
.03Farmers’ cooperatives
SECTION 5. MAY TECHNICAL
ADVICE BE REQUESTED FOR A
§ 301.9100–1 REQUEST MADE
DURING THE COURSE OF AN
EXAMINATION?
p. 64.01Section 301.9100–1 request is a letter ruling request
.02Statute of limitations
.03Address to send a §301.9100–1 request
.04If return is being examined, taxpayer must notify the national office and
the national office will notify the district or appeals office
SECTION 6. WHO IS
RESPONSIBLE FOR REQUESTING
TECHNICAL ADVICE?
p. 64.01District director or chief, appeals office, determines whether technical
advice should be requested
.02Taxpayer may ask that issue be referred for technical advice
SECTION 7. WHEN SHOULD
TECHNICAL ADVICE BE
REQUESTED?
p. 65.01Uniformity of position lacking
.02When technical advice can be requested
.03At the earliest possible stage
SECTION 8. WHAT MUST BE
INCLUDED IN THE REQUEST?
p. 65.01Statement of issues, facts, law, and arguments
.02Statement identifying information to be deleted from public inspection
.03Transmittal Form 4463, Request for Technical Advice
.04Number of copies of request to be submitted
.05Power of attorney
SECTION 9. HOW ARE REQUESTS
HANDLED?
p. 67.01Taxpayer notified
.02Conference offered
.03If the taxpayer disagrees with the Service’s statement of facts
.04If the Service disagrees with the taxpayer’s statement of facts
.05If the taxpayer has not submitted the required deletions statement
.06Section 6104 of the Internal Revenue Code (Applications for exemption
and letter rulings issued to certain exempt organizations open to public
inspection)
.07Criminal or civil fraud cases
SECTION 10. HOW DOES A
TAXPAYER APPEAL A DISTRICT
DIRECTOR OR CHIEF, APPEALS
OFFICE, DECISION NOT TO SEEK
TECHNICAL ADVICE?
p. 68.01Taxpayer notified of decision not to seek technical advice
.02Taxpayer may appeal decision not to seek technical advice
.03Chief, examination division, or chief, appeals office, determines whether
technical advice will be sought
.04Chief’s decision may be reviewed but not appealed

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SECTION 11. HOW ARE
REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN?
p. 69.01Taxpayer notified
.02National office may provide views
SECTION 12. HOW ARE
CONFERENCES SCHEDULED?
p. 70.01If requested, offered to the taxpayer when adverse technical advice
proposed
.02Normally held within 21 days of contact with the taxpayer
.0321-day period will be extended if justified and approved
.04Denial of extension cannot be appealed
.05Entitled to one conference of right
.06Conference may not be taped
.07Conference may be delayed to address a request for relief under
§ 7805(b)
.08Service makes tentative recommendations
.09Additional conferences may be offered
.10Additional information submitted after the conference
.11May, under limited circumstances, schedule a conference to be held by
telephone
SECTION 13. HOW IS STATUS
OF REQUEST OBTAINED?
p. 72.01Taxpayer or the taxpayer’s representative may request status
.02District director or chief, appeals office, may request status
SECTION 14. HOW DOES THE
NATIONAL OFFICE PREPARE
THE TECHNICAL ADVICE
MEMORANDUM?
p. 72.01Delegates authority to branch chiefs
.02Determines whether request has been properly made
.03Contacts the district or appeals office to discuss issues
.04Determines whether any matters in the request should be referred to
another branch
.05Informs the district or appeals office if additional information is needed
.06Gives tentative conclusion
.07If a tentative conclusion has not been reached, gives date estimated for
tentative conclusion
.08Advises the district or appeals office if tentative conclusion is changed
.09Discussion with the taxpayer regarding tentative conclusion
.10Advises the district or appeals office of final conclusions
.11If additional information is requested
.12Additional information sent to the national office and copy sent to the
district director or chief, appeals office
.13Informs the taxpayer when requested deletions will not be made
.14Prepares reply in two parts
.15Routes replies to appropriate office
SECTION 15. HOW DOES A
DISTRICT OR APPEALS OFFICE
USE THE TECHNICAL ADVICE?
p. 75.01Generally applies advice in processing the taxpayer’s case
.02Discussion with the taxpayer
.03Gives copy to the taxpayer
.04Taxpayer may protest deletions not made
.05When no copy is given to the taxpayer
SECTION 16. WHAT IS THE
EFFECT OF TECHNICAL ADVICE?
p. 76.01Applies only to the taxpayer for whom technical advice was requested
.02Usually applies retroactively
.03Generally applied retroactively to modify or revoke prior technical
advice
.04Applies to continuing action or series of actions until specifically
withdrawn, modified, or revoked
.05Applies to continuing action or series of actions until material facts
change

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.06Not applied retroactively under certain conditions
SECTION 17. HOW MAY
RETROACTIVE EFFECT BE
LIMITED?
p. 77.01Taxpayer may request that retroactivity be limited
.02Examples of when the taxpayer may request to limit retroactivity
.03Form of request to limit retroactivity for a continuing transaction —
before examination
.04Form of request to limit retroactivity — in all other cases
.05Taxpayer’s right to a conference
SECTION 18. WHAT SIGNIFICANT
CHANGES HAVE BEEN MADE TO
REV. PROC. 95–2?
p. 78
SECTION 19. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
p. 78
SECTION 20. WHAT IS THE
EFFECTIVE DATE OF THIS
REVENUE PROCEDURE?
p. 79
DRAFTING INFORMATIONp. 79
INDEXp. 80
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
This revenue procedure explains when and how the Associate Chief Counsel
(Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organiza-
tions), the Associate Chief Counsel (Enforcement Litigation), and the Associate Chief
Counsel (International) give technical advice to a district director or a chief, appeals
office. It also explains the rights a taxpayer has when a district director or a chief,
appeals office, requests technical advice regarding a tax matter.
Description of terms used in this
revenue procedure
For purposes of this revenue procedure—
(1)any reference to district director or district office includes their respective
offices or, when appropriate, the Assistant Commissioner (International) or the
director of an Internal Revenue Service Center;
(2)any reference to chief, appeals office, includes, when appropriate, the assistant
regional director of appeals (large case);
(3)any reference to chief, examination division includes, when appropriate, the
chief, employee plans/exempt organizations division;
(4)any reference to appeals officer includes, when appropriate, the team chief;
(5)the word ‘‘taxpayer’’ includes all persons subject to any provision of the
Internal Revenue Code (including issuers of §103 obligations) and, when appropriate,
their representatives; and
(6)the word ‘‘national office’’ refers to the Office of Associate Chief Counsel
(Domestic), the Office of Associate Chief Counsel (Employee Benefits and Exempt
Organizations), the Office of Associate Chief Counsel (Enforcement Litigation), or the
Office of Associate Chief Counsel (International), as appropriate.
Updated annuallyThe revenue procedure is updated annually as the second revenue procedure of the
year, but may be modified or amplified during the year.
SECTION 2. WHAT IS TECHNICAL
ADVICE?
‘‘Technical advice’’ means advice or guidance in the form of a memorandum
furnished by the national office upon the request of a district director or a chief,
appeals office, submitted in accordance with the provisions of this revenue procedure,
in response to any technical or procedural question that develops during any
proceeding on the interpretation and proper application of tax law, tax treaties,
regulations, revenue rulings, notices, or other precedents published by the national
office to a specific set of facts. Such proceedings include: (1) the examination of a
taxpayer’s return; (2) the consideration of a taxpayer’s claim for refund or credit; (3)
any matter under examination or in appeals pertaining to tax-exempt bonds or

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mortgage credit certificates; and (4) any other matter involving a specific taxpayer
under the jurisdiction of the chief, examination division, or the chief, appeals office.
They also include processing and considering nondocketed cases in an appeals office
but do not include cases in which the issue in the case is in a docketed case for any
taxable year. If, however, a case is docketed for an estate tax issue of a taxpayer
while a request for technical advice on the same issue of the same taxpayer is
pending, the national office may issue the technical advice memorandum if the
appropriate appeals officer and counsel for the Government agree, by memorandum, to
the issuance of the technical advice memorandum.
Technical advice helps Internal Revenue Service personnel close cases and also
helps establish and maintain consistent holdings throughout the Service. A district
director or a chief, appeals office, may raise an issue in any tax period, even though
technical advice may have been asked and furnished for the same or similar issue for
another tax period.
Technical advice does not include legal advice furnished to the district or appeals
office in writing or orally, other than advice furnished pursuant to this revenue
procedure. In accordance with section 10.01 of this revenue procedure, a taxpayer’s
request for referral of an issue to the national office for technical advice will not be
denied merely because the national office has provided legal advice, other than advice
furnished pursuant to this revenue procedure, to the district or appeals office on the
matter.
SECTION 3. ON WHAT ISSUES
MAY TECHNICAL ADVICE BE
REQUESTED UNDER THIS
PROCEDURE?
Issues under the jurisdiction of
the Associate Chief Counsel
(Domestic), the Associate Chief
Counsel (Employee Benefits and
Exempt Organizations), the
Associate Chief Counsel
(Enforcement Litigation), or the
Associate Chief Counsel
(International)
.01The instructions of this revenue procedure apply to requests for technical advice
on any issue under the jurisdiction of the Associate Chief Counsel (Domestic), the
Associate Chief Counsel (Employee Benefits and Exempt Organizations), or the
Associate Chief Counsel (International), and on certain issues under the jurisdiction of
the Associate Chief Counsel (Enforcement Litigation). See section 3 of Rev. Proc. 96–
1, this Bulletin, for a description of the principal subject matters of jurisdiction.
Issues involving shipowners’
protection and indemnity
associations and certain
homeowners associations
.02The jurisdiction of the Associate Chief Counsel (Domestic) extends to issuing
technical advice under §§526 (shipowners’ protection and indemnity associations) and
528 (certain homeowners associations).
SECTION 4. ON WHAT ISSUES
MUST TECHNICAL ADVICE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
Alcohol, tobacco, and firearms
taxes
.01The procedures for obtaining technical advice specifically applicable to federal
alcohol, tobacco, and firearms taxes under subtitle E of the Code are under the
jurisdiction of the Bureau of Alcohol, Tobacco and Firearms.
Employee plans and exempt
organizations
.02The procedures for obtaining technical advice specifically on issues under the
jurisdiction of the Assistant Commissioner (Employee Plans and Exempt Organiza-
tions) are found in Rev. Proc. 96–5, this Bulletin. However, the procedures under Rev.
Proc. 96–2 (this revenue procedure) must be followed for obtaining technical advice
on issues pertaining to tax-exempt bonds and mortgage credit certificates.
Farmers’ cooperatives.03Even though the Associate Chief Counsel (Domestic) has jurisdiction for
issuing technical advice under §521, the procedures under Rev. Proc. 96–5 and Rev.
Proc. 90–27, 1990–1 C.B. 514, as modified by Rev. Proc. 96–8, this Bulletin, as well
as §601.201(n) of the Statement of Procedural Rules (26 C.F.R. §601.201(n) (1995)),
must be followed.

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SECTION 5. MAY TECHNICAL
ADVICE BE REQUESTED FOR A
§ 301.9100–1 REQUEST MADE
DURING THE COURSE OF AN
EXAMINATION?
Section 301.9100–1 request is a
letter ruling request
.01A request for an extension of time for making an election or other application
for relief under §301.9100–1 of the Procedure and Administration Regulations is a
letter ruling request even if the request is submitted after the examination of the
taxpayer’s return has begun or after the issues in the return are being considered by an
appeals office. Therefore, a §301.9100–1 request should be submitted pursuant to
Rev. Proc. 96–1 (including the payment of the applicable user fee listed in Appendix
A of Rev. Proc. 96–1). See section 5.02 of Rev. Proc. 96–1.
Statute of limitations.02The running of any applicable period of limitations is not suspended for the
period during which a §301.9100–1 request has been filed. If the period of limitations
on assessment under §6501(a) for the year for which a timely filed election would
have been made or for any affected succeeding year will expire before receipt of a
§ 301.9100–1 letter ruling, the Service ordinarily will not issue a §301.9100–1 ruling.
See section 5.02(2) of Rev. Proc. 92–85, 1992–2 C.B. 490, as modified by Rev. Proc.
96–1, and Rev. Proc. 93–28, 1993–2 C.B. 344. Therefore, the taxpayer must secure a
consent under §6501(c)(4) to extend the period of limitations on assessment. Note
that the filing of a claim for refund under §6511 does not extend the period of
limitations on assessment. If §301.9100–1 relief is granted, the Service may require
the taxpayer to consent to an extension of the period of limitations on assessment. See
section 8.02 of Rev. Proc. 92–85.
Address to send a §301.9100–1
request
.03A §301.9100–1 request, together with the appropriate user fee, must be
submitted by the taxpayer to the Associate Chief Counsel (Domestic), the Associate
Chief Counsel (Employee Benefits and Exempt Organizations), the Associate Chief
Counsel (Enforcement Litigation), or the Associate Chief Counsel (International), as
appropriate, at the following address:
Internal Revenue Service
Attn: CC:DOM:CORP:T
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
The package should be marked: RULING REQUEST SUBMISSION. A
§ 301.9100–1 request may also be hand delivered to the drop box at the 12th Street
entrance of 1111 Constitution Avenue, N.W., Washington, DC. No receipt will be
given at the drop box. See Appendix A of Rev. Proc. 96–1 for the appropriate user
fee.
If return is being examined,
taxpayer must notify the national
office and the national office
will notify the district or appeals
office
.04If the taxpayer’s return covering the issue presented in the §301.9100–1
request is being examined by a district office or the issues in the return are being
considered by an appeals office, the taxpayer must notify the national office. See
sections 5.02(1) and (3) of Rev. Proc. 96–1. The national office will notify the
appropriate district office or appeals office that a §301.9100–1 request has been
submitted to the national office. The examining officer or appeals officer is not
authorized to deny consideration of a §301.9100–1 request. The letter ruling will be
mailed to the taxpayer and a copy will be sent to the appropriate district office or
appeals office.
SECTION 6. WHO IS
RESPONSIBLE FOR REQUESTING
TECHNICAL ADVICE?
District director or chief, appeals
office, determines whether
technical advice should be
requested
.01The district director or chief, appeals office, determines whether to request
technical advice on any issue being considered. Each request must be submitted
through channels and signed by a person who is authorized to sign for the district
director or chief, appeals office.
Taxpayer may ask that issue be
referred for technical advice
.02While a case is under the jurisdiction of a district director or chief, appeals
office, a taxpayer may request in writing or orally to the examining officer or appeals
officer that an issue be referred to the national office for technical advice.

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SECTION 7. WHEN SHOULD
TECHNICAL ADVICE BE
REQUESTED?
Uniformity of position lacking.01Technical advice should be requested when there is a lack of uniformity
regarding the disposition of an issue or when an issue is unusual or complex enough
to warrant consideration by the national office.
When technical advice can be
requested
.02The provisions of this revenue procedure apply only to a case under the
jurisdiction of a district director or chief, appeals office. Technical advice may also be
requested on issues considered in a prior appeals disposition, not based on mutual
concessions for the same tax period of the same taxpayer, if the appeals office that
had the case concurs in the request. A district director may not request technical
advice on an issue if an appeals office is currently considering an identical issue of
the same taxpayer (or of a related taxpayer within the meaning of §267 or a member
of an affiliated group of which the taxpayer is also a member within the meaning of
§ 1504). A case remains under the jurisdiction of the district director even though an
appeals office has the identical issue under consideration in the case of another
taxpayer (not related within the meaning of §267 or §1504) in an entirely different
transaction. With respect to the same taxpayer or the same transaction, when the issue
is under the jurisdiction of an appeals office and the applicability of more than one
kind of federal tax is dependent upon the resolution of that issue, a district director
may not request technical advice on the applicability of any of the taxes involved.
A district director or chief, appeals office, also may not request technical advice on
an issue if the same issue of the same taxpayer (or of a related taxpayer within the
meaning of §267 or a member of an affiliated group of which the taxpayer is also a
member within the meaning of §1504) is in a docketed case for the same taxpayer (or
for a related taxpayer or a member of an affiliated group of which the taxpayer is also
a member) for any taxable year. If, however, a case is docketed for an estate tax issue
of a taxpayer while a request for technical advice on the same issue of the same
taxpayer is pending, the national office may issue the technical advice memorandum if
the appropriate appeals officer and counsel for the Government agree, by
memorandum, to the issuance of the technical advice memorandum.
At the earliest possible stage.03Once an issue is identified, all requests for technical advice should be made at
the earliest possible stage in any proceeding. The fact that the issue is raised late in
the examination or appeals process should not influence, however, the district or
appeals office’s decision to request technical advice.
SECTION 8. WHAT MUST BE
INCLUDED IN THE REQUEST?
Statement of issues, facts, law,
and arguments
.01Whether initiated by the taxpayer or by a district or appeals office, a request for
technical advice must include the facts and the issues for which technical advice is
requested and also a written statement clearly stating the applicable law and the
arguments in support of both the Service’s and the taxpayer’s position on the issue or
issues.
(1)Taxpayer must submit statement if taxpayer initiates request for technical
advice. If the taxpayer initiates the request for technical advice, the taxpayer must
submit to the examining officer or appeals officer, at the time the taxpayer initiates
the request, a written statement—
(a)stating the facts and the issues;
(b)explaining the taxpayer’s position;
(c)discussing any relevant statutory provisions, tax treaties, court decisions,
regulations, revenue rulings, revenue procedures, notices, or any authority supporting
the taxpayer’s position; and
(d)stating the reasons for requesting technical advice.
If the examining officer or appeals officer determines that technical advice will be
requested, the taxpayer’s statement will be forwarded to the national office with the
request for technical advice.

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(2)Taxpayer is encouraged to submit statement if Service initiates request for
technical advice. If the request for technical advice is initiated by a district or appeals
office, the taxpayer is encouraged to submit the written statement described in section
8.01(1) of this revenue procedure. If the taxpayer submits this statement, it will be
forwarded to the national office with the request for technical advice. If the taxpayer’s
statement is received after the request for technical advice has been forwarded to the
national office, the statement will be forwarded to the national office for association
with the technical advice request.
(3)Statement of authorities contrary to taxpayer’s position. Whether the request
for technical advice is initiated by the taxpayer or by a district or appeals office, the
taxpayer is also encouraged to comment on any legislation (or pending legislation),
tax treaties, regulations, revenue rulings, revenue procedures, or court decisions
contrary to the taxpayer’s position. If the taxpayer determines that there are no
contrary authorities, a statement to this effect would be helpful. If the taxpayer does
not furnish either contrary authorities or a statement that none exists, the Service in
complex cases or those presenting difficult or novel issues may request submission of
contrary authorities or a statement that none exists.
Statement identifying information
to be deleted from public
inspection
.02The text of a technical advice memorandum is open to public inspection under
§ 6110(a). The Service deletes certain information from the text before it is made
available for inspection. To help the Service make the deletions required by §6110(c),
the taxpayer must provide a statement indicating the deletions desired (‘‘deletions
statement’’). If the taxpayer does not submit the deletions statement, the Service will
follow the procedures in section 9.05 of this revenue procedure.
A taxpayer who wants only names, addresses, and identifying numbers deleted
should state this in the deletions statement. If the taxpayer wants more information
deleted, the deletions statement must be accompanied by a copy of the technical
advice request and supporting documents on which the taxpayer should bracket the
material to be deleted. The deletions statement must indicate the statutory basis under
§ 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the technical advice
memorandum is issued, additional deletions statements may be submitted.
The deletions statement must not appear in the request for technical advice but,
instead, must be made in a separate document.
The deletions statement must be signed and dated by the taxpayer or the taxpayer’s
authorized representative. A stamped signature is not permitted.
The taxpayer should follow these same procedures to propose deletions from any
additional information submitted after the initial request for technical advice. An
additional deletions statement, however, is not required with each submission of
additional information if the taxpayer’s initial deletions 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.
Transmittal Form 4463, Request
for Technical Advice
.03The district or appeals office should use Form 4463, Request for Technical
Advice, for transmitting a request for technical advice to the national office using the
addresses listed below.
Address to send requests from
district offices
Internal Revenue Service
Attn: CC:DOM:CORP:T
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
Address to send requests from
appeals offices
Internal Revenue Service
Attn: C:AP:FS
Box 68
901 D Street, S.W.
Washington, DC 20024
Number of copies of request to
be submitted
.04The district or appeals office must submit: (1) two copies of the request for
technical advice to the national office; and (2) one copy of the request for technical
advice to the Issue or Industry Specialist if the request involves a designated issue or
industry under the Industry Specialization Program.

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Power of attorney.05Any authorized representative, as described in section 8.01(11) of Rev. Proc.
96–1, whether or not enrolled to practice, must comply with Treasury Department
Circular No. 230 (31 C.F.R. part 10 (1995)) and with the conference and practice
requirements of the Statement of Procedural Rules (26 C.F.R. §601.501–509 (1995)).
It is preferred that Form 2848, Power of Attorney and Declaration of Representative,
be used with regard to requests for technical advice under this revenue procedure.
SECTION 9. HOW ARE REQUESTS
HANDLED?
Taxpayer notified.01Regardless of whether the taxpayer or the Service initiates the request for
technical advice, the district or appeals office will notify the taxpayer that technical
advice is being requested and will give the taxpayer a copy of the arguments that were
provided to the national office in support of the Service’s position, except as noted in
section 9.07 of this revenue procedure.
If the examining officer or appeals officer initiates the request for technical advice,
he or she will give the taxpayer a copy of the statement of the pertinent facts and the
issues proposed for submission to the national office.
Conference offered.02When notifying the taxpayer that technical advice is being requested, the
examining officer or appeals officer will also tell the taxpayer about the right to a
conference in the national office if an adverse decision is indicated and will ask the
taxpayer whether such a conference is desired.
If the taxpayer disagrees with
the Service’s statement of facts
.03If the examining officer or appeals officer initiates the request for technical
advice, the taxpayer has 10 calendar days after receiving the statement of facts and
specific issues to indicate in writing any disagreement. A taxpayer who needs more
than 10 calendar days must justify in writing the request for an extension of time. The
extension is subject to the approval of the chief, examination division, or the chief,
appeals office.
After receiving the taxpayer’s statement of the areas of disagreement, every effort
should be made to reach an agreement on the facts and the specific points at issue
before the matter is referred to the national office. If an agreement cannot be reached,
the district or appeals office will notify the taxpayer in writing. Within 10 calendar
days after receiving the written notice, the taxpayer may submit a statement of the
taxpayer’s understanding of the facts and the specific points at issue. A taxpayer who
needs more than 10 calendar days to prepare the statement of understanding must
justify in writing the request for an extension of time. The extension is subject to the
approval of the chief, examination division, or the chief, appeals office. Both the
statements of the taxpayer and the district or appeals office will be forwarded to the
national office with the request for technical advice.
When the district director or the chief, appeals office, and the taxpayer cannot agree
on the material facts and the request for technical advice does not involve the issue of
whether a letter ruling should be modified or revoked, the national office, at its
discretion, may refuse to provide technical advice. If the national office chooses to
issue technical advice, the national office will base its advice on the facts provided by
the district or appeals office.
If a request for technical advice involves the issue of whether a letter ruling should
be modified or revoked, the national office will issue technical advice.
If the Service disagrees with the
taxpayer’s statement of facts
.04If the taxpayer initiates the request for technical advice and the taxpayer’s
statement of the facts and issues is not wholly acceptable to the district or appeals
office, the Service will notify the taxpayer in writing of the areas of disagreement.
The taxpayer has 10 calendar days after receiving the written notice to reply to it. A
taxpayer who needs more than 10 calendar days must justify in writing the request for
an extension of time. The extension is subject to the approval of the chief,
examination division, or the chief, appeals office.
If an agreement cannot be reached, both the statements of the taxpayer and the
district or appeals office will be forwarded to the national office with the request for
technical advice. When the disagreement involves material facts essential to the
preliminary assessment of the case, the district director or the chief, appeals office,
may refuse to refer a taxpayer initiated request for technical advice to the national
office.

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If the district director or the chief, appeals office, submits a case involving a
disagreement of the material facts, the national office, at its discretion, may refuse to
provide technical advice. If the national office chooses to issue technical advice, the
national office will base its advice on the facts provided by the district or appeals
office.
If the taxpayer has not submitted
the required deletions statement
.05When the district or appeals office initiates the request for technical advice, the
taxpayer has 10 calendar days after receiving the statement of facts and issues to be
submitted to the national office to provide the deletions statement required under
§ 6110(c). See section 8.02 of this revenue procedure. If the taxpayer does not submit
the deletions statement, the district director or the chief, appeals office, will tell the
taxpayer that the statement is required.
When the taxpayer initiates the request for technical advice and does not submit a
deletions statement with the request, the district director or the chief, appeals office,
will ask the taxpayer to submit the statement. If the district director or the chief,
appeals office, does not receive the deletions statement within 10 calendar days after
asking the taxpayer for it, the district director or the chief, appeals office, may decline
to submit the request for technical advice.
However, if the district director or the chief, appeals office, decides to request
technical advice, whether initiated by the district or appeals office or by the taxpayer,
in a case in which the taxpayer has not submitted the deletions statement, the national
office will make those deletions that the Commissioner of Internal Revenue
determines are required by §6110(c).
Section 6104 of the Internal
Revenue Code (Applications for
exemption and letter rulings
issued to certain exempt
organizations open to public
inspection)
.06The requirements for submitting statements and other materials or proposed
deletions in technical advice memorandums before public inspection is allowed do not
apply to requests for any documents to the extent that §6104 applies.
Criminal or civil fraud cases.07The provisions of this section (about referring issues upon the taxpayer’s
request, telling the taxpayer about the referral of issues, giving the taxpayer a copy of
the arguments submitted, submitting proposed deletions, and granting conferences in
the national office) do not apply to a technical advice memorandum described in
§ 6110(g)(5)(A) that involves a matter that is the subject of or is otherwise closely
related to a criminal or civil fraud investigation, or a jeopardy or termination
assessment.
In these cases, a copy of the technical advice memorandum is given to the taxpayer
after all proceedings in the investigations or assessments are complete, but before the
Commissioner mails the notice of intention to disclose the technical advice
memorandum under §6110(f)(1). The taxpayer may then provide the statement of
proposed deletions to the national office.
SECTION 10. HOW DOES A
TAXPAYER APPEAL A DISTRICT
DIRECTOR OR CHIEF, APPEALS
OFFICE, DECISION NOT TO SEEK
TECHNICAL ADVICE?
Taxpayer notified of decision not
to seek technical advice
.01If the examining officer or appeals officer concludes that a taxpayer’s request
for referral of an issue to the national office for technical advice does not warrant
referral, the examining officer or appeals officer will tell the taxpayer. A taxpayer’s
request for such a referral will not be denied merely because the national office
provided legal advice, other than advice furnished pursuant to this revenue procedure,
to the district or appeals office on the matter.
Taxpayer may appeal decision
not to seek technical advice
.02The taxpayer may appeal the decision of the examining officer or appeals
officer not to request technical advice. To do so, the taxpayer must submit to that
official, within 10 calendar days after being told of the decision, a statement of the
facts, law, and arguments on the issue and the reasons why the taxpayer believes the
matter should be referred to the national office for technical advice. A taxpayer who
needs more than 10 calendar days must justify in writing the request for an extension
of time. The extension is subject to the approval of the chief, examination division, or
the chief, appeals office.

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Chief, examination division, or
chief, appeals office, determines
whether technical advice will be
sought
.03The examining officer or appeals officer submits the taxpayer’s statement
through channels to the chief, examination division, or the chief, appeals office, along
with the examining officer’s or appeals officer’s statement of why the issue should not
be referred to the national office. The chief determines on the basis of the statements
whether technical advice will be requested.
If the chief determines that technical advice is not warranted and proposes to deny
the request, the taxpayer is told in writing about the determination. In the letter to the
taxpayer, the chief states the reasons for the proposed denial (except in unusual
situations when doing so would be prejudicial to the best interests of the
Government). The taxpayer has 10 calendar days after receiving the letter to notify the
chief of agreement or disagreement with the proposed denial.
Chief’s decision may be reviewed
but not appealed
.04The taxpayer may not appeal the decision of the chief, examination division, or
the chief, appeals office, not to request technical advice from the national office.
However, if the taxpayer does not agree with the proposed denial, all data on the issue
for which technical advice has been sought, including the taxpayer’s written request
and statements, will be submitted to the Assistant Commissioner (Examination), the
Assistant Commissioner (International), or the National Director of Appeals, as
appropriate.
The Assistant Commissioner (Examination), the Assistant Commissioner (Interna-
tional), or the National Director of Appeals, as appropriate, will review the proposed
denial solely on the basis of the written record, and no conference will be held with
the taxpayer or the taxpayer’s representative. The Assistant Commissioner (Examina-
tion), the Assistant Commissioner (International), or the National Director of Appeals
may consult with the national office, if necessary, and will notify the district office or
appeals office within 45 calendar days of receiving all the data regarding the request
for technical advice whether the proposed denial is approved or disapproved. The
district office or appeals office will then notify the taxpayer.
While the matter is being reviewed, the district office or appeals office suspends
action on the issue (except when the delay would prejudice the Government’s
interest).
The provisions of this revenue procedure in regard to review of the proposed denial
of a request for technical advice continue to be applicable in those situations in which
the authority normally exercised by the district director or chief, appeals office, has
been delegated to another official.
SECTION 11. HOW ARE
REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN?
Taxpayer notified.01Once a request for technical advice has been sent to the national office, only a
district director or a chief, appeals office, may withdraw a request for technical
advice. He or she may ask to withdraw a request at any time before the responding
transmittal memorandum for the technical advice is signed.
The district director or the chief, appeals office, as appropriate, must notify the
taxpayer in writing of an intent to withdraw the request for technical advice except—
(1)when the period of limitations on assessment is about to expire and the taxpayer
has declined to sign a consent to extend the period; or
(2)when such notification would be prejudicial to the best interests of the
Government.
If the taxpayer does not agree that the request for technical advice should be
withdrawn, the procedures in section 10 of this revenue procedure must be followed.
National office may provide
views
.02When a request for technical advice is withdrawn, the national office may send
its views to the district director or the chief, appeals office, when acknowledging the
withdrawal request. In an appeals case, acknowledgment of the withdrawal request
should be sent to the appropriate appeals office, through the National Director of
Appeals, C:AP:FS. In appropriate cases, the subject matter may be published as a
revenue ruling or as a revenue procedure.

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SECTION 12. HOW ARE
CONFERENCES SCHEDULED?
If requested, offered to the
taxpayer when adverse technical
advice proposed
.01If, after the technical advice request is analyzed, it appears that technical advice
adverse to the taxpayer will be given, and if a conference has been requested, the
taxpayer will be informed, by telephone if possible, of the time and place of the
conference.
Normally held within 21 days of
contact with the taxpayer
.02The conference must be held within 21 calendar days after the taxpayer is
contacted. If conferences are being arranged for more than one request for technical
advice for the same taxpayer, they will be scheduled to cause the least inconvenience
to the taxpayer. The national office will notify the examining officer or appeals officer
of the scheduled conference and will offer the examining officer or appeals officer the
opportunity to attend the conference. The Assistant Commissioner (Examination), the
Assistant Commissioner (International), the National Director of Appeals, the district
director, or the chief, appeals office, may designate other Service representatives to
attend the conference in lieu of, or in addition to, the examining officer or appeals
officer.
21-day period will be extended
if justified and approved
.03An extension of the 21-day period will be granted only if the taxpayer justifies
it in writing and the branch chief, senior technician reviewer (or senior technical
reviewer), or assistant to the branch chief (or assistant branch chief) of the branch to
which the case is assigned approves it. The request for extension should be submitted
before the end of the 21-day period. If unusual circumstances near the end of the
period make a timely written request impractical, the national office should be told
orally before the end of the period about the problem and about the forthcoming
written request for extension. The taxpayer will be told promptly (and later in writing)
of the approval or denial of a requested extension.
Denial of extension cannot be
appealed
.04There is no right to appeal the denial of an extension request. If the national
office is not advised of problems with meeting the 21-day period or if the written
request is not sent promptly after the national office is notified of problems with
meeting the 21-day period, the case will be processed on the basis of the existing
record.
Entitled to one conference of
right
.05A taxpayer is entitled by right to only one conference in the national office
unless one of the circumstances discussed in section 12.09 of this revenue procedure
exists. This conference is normally held at the branch level. It is attended by a person
who has authority to sign the transmittal memorandum (discussed in section 14.14 of
this revenue procedure) on behalf of the branch chief.
When more than one branch has taken an adverse position on an issue in the
request or when the position ultimately adopted by one branch will affect another
branch’s determination, a representative from each branch with authority to sign for
the branch chief will attend the conference. If more than one subject is discussed at
the conference, the discussion constitutes a conference for each subject.
To have a thorough and informed discussion of the issues, the conference usually is
held after the branch has had an opportunity to study the case. However, the taxpayer
may request that the conference of right be held earlier in the consideration of the
case than the Service would ordinarily designate.
The taxpayer has no right to appeal the action of a branch to an assistant chief
counsel or to any other Service official. But see section 12.09 of this revenue
procedure for situations in which the Service may offer additional conferences.
Conference may not be taped.06Because conference procedures are informal, no tape, stenographic, or other
verbatim recording of a conference may be made by any party.
Conference may be delayed to
address a request for relief
under §7805(b)
.07In the event of a tentatively adverse determination, the branch representatives
may offer the taxpayer the option of delaying the conference so that the taxpayer can
prepare and submit a brief requesting relief under §7805(b) (discussed in section 17
of this revenue procedure). In these cases, the Service will schedule a conference on
the tentatively adverse decision and the §7805(b) relief request within 10 days of
receiving the taxpayer’s §7805(b) request.

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Service makes tentative
recommendations
.08The senior Service representative at the conference ensures that the taxpayer
has full opportunity to present views on all the issues in question. The Service
representatives explain the tentative decision on the substantive issues and the reasons
for it.
If the taxpayer requests relief under §7805(b) (regarding limitation of retroactive
effect), the Service representative will discuss the tentative recommendation
concerning the request for relief and the reason for the tentative recommendation.
No commitment will be made as to the conclusion that the Service will finally
adopt regarding the outcome of the §7805(b) issue or on any other issue discussed.
Additional conferences may be
offered
.09The Service 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 grounds different from those discussed at the first conference.
When a proposed holding is reversed at a higher level with a result less favorable to
the taxpayer, the taxpayer has no right to another conference if the grounds or
arguments on which the reversal is based were discussed at the conference of right.
The limitation on the number of conferences to which a taxpayer is entitled does
not prevent the national office from inviting a taxpayer to attend additional
conferences, including conferences with an official higher than the branch level, if
national office personnel think they are necessary. Such 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 Service
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.
In accordance with section 12.02 of this revenue procedure, the examining officer
or appeals officer will be offered the opportunity to participate in any additional
taxpayer’s conference, including a conference with an official higher than the branch
level. Section 12.02 of this revenue procedure also provides that other Service
representatives are allowed to participate in the conference.
Additional information submitted
after the conference
.10Within 21 calendar days after the conference, the taxpayer must furnish to the
national office any additional data, lines of reasoning, precedents, etc., that the
taxpayer proposed and discussed at the conference but did not previously or
adequately present in writing. This additional information must be submitted by letter
with a penalties of perjury statement in the form described in section 14.11(1) of this
revenue procedure.
The taxpayer must also send a copy of the additional information to the district
director or the chief, appeals office, for comment. Any comments by the district
director or the chief, appeals office, must be furnished promptly to the appropriate
branch in the national office. If the district director or the chief, appeals office, does
not have any comments, he or she must notify the branch representative promptly.
If the additional information would have a significant impact on the facts in the
request for technical advice, the national office will ask the district director or the
chief, appeals office, for comment on the facts contained in the additional information
submitted. The district director or the chief, appeals office, will give the additional
information prompt attention.
If the additional information is not received within 21 days, the technical advice
memorandum will be issued on the basis of the existing record.
An extension of the 21-day period may be granted only if the taxpayer justifies it in
writing and the branch chief, senior technician reviewer (or senior technical reviewer),
or the assistant to the branch chief (or assistant branch chief) of the branch to which
the case is assigned approves the extension. The procedures for requesting an
extension of the 21-day period and notifying the taxpayer of the Service’s decision are
the same as those in sections 12.03 and 12.04 of this revenue procedure.
May, under limited
circumstances, schedule a
conference to be held by
telephone
.11Infrequently, taxpayers request that their conference of right 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. If a taxpayer makes such a request, the branch chief,

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senior technician reviewer (or senior technical reviewer), or assistant to the branch
chief (or assistant branch chief) of the branch to which the case is assigned will
decide if it is appropriate in the particular case to hold the conference of right by
telephone. If the request is approved, the taxpayer will be advised when to call the
Service representatives (not a toll-free call).
In accordance with section 12.02 of this revenue procedure, the examining officer
or appeals officer will be offered the opportunity to participate in the telephone
conference. Section 12.02 of this revenue procedure also provides that other Service
representatives are allowed to participate in the conference.
SECTION 13. HOW IS STATUS OF
REQUEST OBTAINED?
Taxpayer or the taxpayer’s
representative may request status
.01The taxpayer or the taxpayer’s representative may obtain information on the
status of the request for technical advice by contacting the district or appeals office
that requested the technical advice. See section 14.09 of this revenue procedure
concerning the time for discussing the tentative conclusion with the taxpayer or the
taxpayer’s representative. See section 15.02 of this revenue procedure regarding
discussions of the contents of the technical advice memorandum with the taxpayer or
the taxpayer’s representative.
District director or chief, appeals
office, may request status
.02The district or appeals office will be given status updates on the technical
advice request once a month by the branch representative or branch chief assigned to
the request. In addition, a district director or a chief, appeals office, may get current
information on the status of the request for technical advice by calling the person
whose name and telephone number are shown on the acknowledgement of receipt of
the request for technical advice.
See section 14.10 of this revenue procedure about discussing the final conclusions
with the district or appeals office. Further, the district director or the chief, appeals
office, will be notified at the time the technical advice memorandum is mailed.
SECTION 14. HOW DOES THE
NATIONAL OFFICE PREPARE THE
TECHNICAL ADVICE
MEMORANDUM?
Delegates authority to branch
chiefs
.01The authority to issue technical advice on issues under the jurisdiction of the
Associate Chief Counsel (Domestic) has largely been delegated to the branch chiefs in
the offices of the Assistant Chief Counsel (Corporate), the Assistant Chief Counsel
(Financial Institutions and Products), the Assistant Chief Counsel (Income Tax and
Accounting), and the Assistant Chief Counsel (Passthroughs and Special Industries).
The branch chiefs in the Office of Associate Chief Counsel (Employee Benefits and
Exempt Organizations) and in the Office of Associate Chief Counsel (International)
have largely been delegated the authority to issue technical advice on issues under
their jurisdiction.
The authority to issue technical advice on issues under the jurisdiction of the
Associate Chief Counsel (Enforcement Litigation) has largely been delegated to the
branch chiefs in the office of the Assistant Chief Counsel (General Litigation).
Determines whether request has
been properly made
.02Requests for technical advice generally are given priority and processed
expeditiously. As soon as the request for technical advice is assigned, the branch
representative analyzes the file to see whether it meets all requirements of sections 6
through 8 of this revenue procedure.
However, if the request does not comply with the requirements of section 8.02 of
this revenue procedure relating to the deletions statement, the Service will follow the
procedure in the last paragraph of section 9.05 of this revenue procedure.
Contacts the district or appeals
office to discuss issues
.03Usually, within 21 calendar days after the branch receives the request for
technical advice, a representative of the branch telephones the district or appeals
office to discuss the procedural and substantive issues in the request that come within
the branch’s jurisdiction.

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Determines whether any matters
in the request should be referred
to another branch
.04If the technical advice request concerns matters within the jurisdiction of more
than one branch, a representative of the branch that received the original technical
advice request informs the district or appeals office within 21 calendar days of
receiving the request that—
(1)the matters within the jurisdiction of another branch have been referred to the
other branch or office for consideration; and
(2)a representative of the other branch or office will contact the district or appeals
office about the technical advice request within 21 calendar days after receiving it in
accordance with section 14.03 of this revenue procedure.
Informs the district or appeals
office if additional information is
needed
.05The branch representative will inform the district or appeals office that the case
is being returned if substantial additional information is required to resolve an issue.
Cases should be returned for additional information when significant unresolved
factual variances exist between the statement of facts submitted by the district or
appeals office and the taxpayer. Cases should also be returned if major procedural
problems cannot be resolved by telephone.
If only minor procedural deficiencies exist, the branch representative will request
the additional information in the most expeditious manner without returning the case.
Within 21 calendar days after receiving the information requested, the branch
representative will notify the district or appeals office of the tentative conclusion and
an estimated date by which the technical advice memorandum will be mailed, or an
estimated date when a tentative conclusion will be made.
Gives tentative conclusion.06If all necessary information has been provided, the branch representative
informs the district or appeals office of the tentative conclusion and the estimated date
that the technical advice memorandum will be mailed.
If a tentative conclusion has not
been reached, gives date
estimated for tentative
conclusion
.07If a tentative conclusion has not been reached because of the complexity of the
issue, the branch representative informs the district or appeals office of the estimated
date the tentative conclusion will be made.
Advises the district or appeals
office if tentative conclusion is
changed
.08Because the branch representative’s tentative conclusion may change during the
preparation and review of the technical advice memorandum, the tentative conclusion
should not be considered final. If the tentative conclusion is changed, the branch
representative will inform the district or appeals office.
Discussion with the taxpayer
regarding tentative conclusion
.09Neither the national office nor the district or appeals office should advise the
taxpayer or the taxpayer’s representative of the tentative conclusion during
consideration of the request for technical advice. However, in order to afford
taxpayers an appropriate opportunity to prepare and present their position, the
taxpayer or the taxpayer’s representative should be told the tentative conclusion when
scheduling the adverse conference, at the adverse conference, or in any discussion
between the scheduling and commencement of the adverse conference. See section
15.02 of this revenue procedure regarding discussions of the contents of the technical
advice memorandum with the taxpayer or the taxpayer’s representative.
Advises the district or appeals
office of final conclusions
.10In all cases, the branch representative will inform the examining officer or
appeals officer of the national office’s final conclusions. The examining officer or
appeals officer will be offered the opportunity to discuss the issues and the national
office’s final conclusions before the technical advice memorandum is issued.
If additional information is
requested
.11If, following the initial contact referenced in section 14.03 of this revenue
procedure, it is determined, after discussion with the branch chief or reviewer, that
additional information is needed, a branch representative will obtain the additional
information from the taxpayer or from the district director or the chief, appeals office,
in the most expeditious manner possible. Any additional information requested from
the taxpayer by the national office must be submitted by letter with a penalties of
perjury statement within 21 calendar days after the request for information is made.
(1)Penalties of perjury statement. Additional information submitted to the national
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 facts represented are true, correct,
and complete.’’ This declaration must be signed and dated by the taxpayer, not the
taxpayer’s representative. A stamped signature is not permitted.

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(2)21-day period will be extended if justified and approved. A written request for
an extension of time to submit additional information must be received by the national
office within the 21-day period, giving compelling facts and circumstances to justify
the proposed extension. The branch chief, senior technician reviewer (or senior
technical reviewer), or assistant to the branch chief (or assistant branch chief) of the
branch to which the case is assigned will determine whether to grant or deny the
request for an extension of the 21-day period. There is no right to appeal the denial of
an extension request.
(3)If the taxpayer does not submit additional information. If the national office
does not receive the additional information within the period of 21 days, plus any
extensions granted by the branch chief, senior technician reviewer (or senior technical
reviewer), or assistant to the branch chief (or assistant branch chief), the national
office will issue the technical advice memorandum based on the existing record.
Additional information sent to the
national office and copy sent to
the district director or chief,
appeals office
.12Whether or not requested by the Service, any additional information submitted
by the taxpayer should be sent to the national office.
Also, the taxpayer must send a copy to the district director or the chief, appeals
office, for comment. Any comments by the district director or the chief, appeals
office, must be furnished promptly to the appropriate branch in the national office. If
the district director or the chief, appeals office, does not have any comments, he or
she must notify the branch representative promptly.
Informs the taxpayer when
requested deletions will not be
made
.13Generally, before replying to the request for technical advice, the national
office informs the taxpayer orally or in writing of the material likely to appear in the
technical advice memorandum that the taxpayer proposed be deleted but that the
Service has determined should not be deleted.
If so informed, the taxpayer may submit within 10 calendar days any further
information or arguments supporting the taxpayer’s proposed deletions.
The Service attempts, if possible, to resolve all disagreements about proposed
deletions before the national office replies to the request for technical advice.
However, the taxpayer does not have the right to a conference to resolve any
disagreements about material to be deleted from the text of the technical advice
memorandum. These matters, however, may be considered at any conference
otherwise scheduled for the request. See section 15.04 of this revenue procedure for
the procedures to protest the disclosure of information in the technical advice
memorandum.
Prepares reply in two parts.14The replies to technical advice requests are in two parts. Each part identifies the
taxpayer by name, address, identification number, and year or years involved.
The first part of the reply is a transmittal memorandum (Form M-6000). In unusual
cases, it is a way of giving the district or appeals office administrative or other
information that under the nondisclosure statutes or for other reasons may not be
discussed with the taxpayer.
The second part is the technical advice memorandum, which contains—
(1)a statement of the issues;
(2)a statement of the facts pertinent to the issues;
(3)a statement of the pertinent law, tax treaties, regulations, revenue rulings, and
other precedents published in the Internal Revenue Bulletin, and court decisions;
(4)a discussion of the rationale supporting the conclusions reached by the national
office; and
(5)the conclusions of the national office. The conclusions give direct answers,
whenever possible, to the specific issues raised by the district or appeals office.
However, the national office is not bound by the precise statement of the issues as
submitted by the taxpayer or by the district or appeals office and may reframe the
issues to be answered in the technical advice memorandum. The discussion of the
issues will be in sufficient detail so that the district or appeals officials will
understand the reasoning underlying the conclusion.

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Accompanying the technical advice memorandum is a notice under §6110(f)(1) of
intention to disclose a technical advice memorandum (including a copy of the version
proposed to be open to public inspection and notations of third party communications
under §6110(d)).
Routes replies to appropriate
office
.15Replies to requests for technical advice are addressed to the district director or
the chief, appeals office. Replies to requests from appeals should be routed to the
appropriate appeals office through the National Director of Appeals, C:AP:FS.
SECTION 15. HOW DOES A
DISTRICT OR APPEALS OFFICE
USE THE TECHNICAL ADVICE?
Generally applies advice in
processing the taxpayer’s case
.01The district director or the chief, appeals office, must process the taxpayer’s
case on the basis of the conclusions in the technical advice memorandum unless—
(1)the district director or the chief, appeals office, decides that the conclusions
reached by the national office in a technical advice memorandum should be
reconsidered; or
(2)in the case of technical advice unfavorable to the taxpayer, the chief, appeals
office, decides to settle the issue under existing authority.
Discussion with the taxpayer.02The national office will not discuss the contents of the technical advice
memorandum with the taxpayer or the taxpayer’s representative until the taxpayer has
been given a copy by the district or appeals office. See section 14.09 of this revenue
procedure concerning the time for discussing the tentative conclusion with the
taxpayer or the taxpayer’s representative.
Gives copy to the taxpayer.03The district director or the chief, appeals office, only after adopting the
technical advice, gives the taxpayer—
(1)a copy of the technical advice memorandum described in section 14.14 of this
revenue procedure; and
(2)the notice under §6110(f)(1) of intention to disclose the technical advice
memorandum (including a copy of the version proposed to be open to public
inspection and notations of third party communications under §6110(d)).
This requirement does not apply to technical advice memorandums involving
criminal or civil fraud investigations, or jeopardy or termination assessments, as
described in section 9.07 of this revenue procedure.
Taxpayer may protest deletions
not made
.04After receiving the notice under §6110(f)(1) of intention to disclose the
technical advice memorandum, the taxpayer may protest the disclosure of certain
information in it. The taxpayer must submit a written statement within 20 calendar
days identifying those deletions not made by the Service that the taxpayer believes
should have been made. The taxpayer must also submit a copy of the version of the
technical advice memorandum proposed to be open to public inspection with brackets
around the deletions proposed by the taxpayer that have not been made by the national
office.
Generally, the national office considers only the deletion of material that the
taxpayer has proposed be deleted or other deletions as required under §6110(c) before
the national office reply is sent to the district director or the chief, appeals office.
Within 20 calendar days after it receives the taxpayer’s response to the notice under
§ 6110(f)(1), the national office must mail to the taxpayer its final administrative
conclusion about the deletions to be made.
When no copy is given to the
taxpayer
.05In those cases in which the national office tells the district director or the chief,
appeals office, that a copy of the technical advice memorandum should not be given
to the taxpayer, the district director or the chief, appeals office, will tell the taxpayer
that no copy will be given if the taxpayer requests a copy.

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SECTION 16. WHAT IS THE
EFFECT OF TECHNICAL ADVICE?
Applies only to the taxpayer for
whom technical advice was
requested
.01A taxpayer may not rely on a technical advice memorandum issued by the
Service for another taxpayer. See §6110(j)(3).
Usually applies retroactively.02Except in rare or unusual circumstances, a holding in a technical advice
memorandum that is favorable to the taxpayer is applied retroactively.
Moreover, because technical advice, as described in section 2 of this revenue
procedure, is issued only on closed transactions, a holding that is adverse to the
taxpayer is also applied retroactively, unless the Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the
Associate Chief Counsel (Enforcement Litigation), or the Associate Chief Counsel
(International), as appropriate, exercises the discretionary authority under §7805(b) to
limit the retroactive effect of the holding.
Generally applied retroactively to
modify or revoke prior technical
advice
.03A holding that modifies or revokes a holding in a prior technical advice
memorandum is applied retroactively, with one exception. If the new holding is less
favorable to the taxpayer than the earlier one, it generally is not applied to the period
in which the taxpayer relied on the prior holding in situations involving continuing
transactions.
Applies to continuing action or
series of actions until
specifically withdrawn, modified,
or revoked
.04If a technical advice memorandum relates to a continuing action or a series of
actions, ordinarily it is applied until specifically withdrawn or until the conclusion is
modified or revoked by the enactment of legislation, the ratification of a tax treaty, a
decision of the United States Supreme Court, or the issuance of regulations (temporary
or final), a revenue ruling, or other statement published in the Internal Revenue
Bulletin. Publication of a notice of proposed rulemaking does not affect the
application of a technical advice memorandum.
Applies to continuing action or
series of actions until material
facts change
.05A taxpayer is not protected against retroactive modification or revocation of a
technical advice memorandum involving a continuing action or a series of actions
occurring after the material facts on which the technical advice memorandum is based
have changed.
Not applied retroactively under
certain conditions
.06Generally, a technical advice memorandum that modifies or revokes a letter
ruling or another technical advice memorandum is not applied retroactively either to
the taxpayer to whom or for whom the letter ruling or technical advice memorandum
was originally issued, or to a taxpayer whose tax liability was directly involved in
such letter ruling or technical advice memorandum if—
(1)there has been no misstatement or omission of material facts;
(2)the facts at the time of the transaction are not materially different from the facts
on which the letter ruling or technical advice memorandum was based;
(3)there has been no change in the applicable law;
(4)in the case of a letter ruling, it was originally issued on a prospective or
proposed transaction; and
(5)the taxpayer directly involved in the letter ruling or technical advice
memorandum acted in good faith in relying on the letter ruling or technical advice
memorandum, and the retroactive modification or revocation would be to the
taxpayer’s detriment. For example, the tax liability of each shareholder is directly
involved in a letter ruling or technical advice memorandum on the reorganization of a
corporation. However, the tax liability of a member of an industry is not directly
involved in a letter ruling or technical advice memorandum issued to another member
and, therefore, the holding in a modification or revocation of a letter ruling or
technical advice memorandum to one member of an industry may be retroactively
applied to other members of the industry. By the same reasoning, a tax practitioner
may not obtain the nonretroactive application to one client of a modification or
revocation of a letter ruling or technical advice memorandum previously issued to
another client.
When a letter ruling to a taxpayer or a technical advice memorandum involving a
taxpayer is modified or revoked with retroactive effect, the notice to the taxpayer,

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except in fraud cases, sets forth the grounds on which the modification or revocation
is being made and the reason why the modification or revocation is being applied
retroactively.
SECTION 17. HOW MAY
RETROACTIVE EFFECT BE
LIMITED?
Taxpayer may request that
retroactivity be limited
.01Under §7805(b), the Associate Chief Counsel (Domestic), the Associate Chief
Counsel (Employee Benefits and Exempt Organizations), the Associate Chief Counsel
(Enforcement Litigation), or the Associate Chief Counsel (International), as the
Commissioner’s delegate, may prescribe the extent, if any, to which a technical advice
memorandum will be applied without retroactive effect.
A taxpayer for whom a technical advice memorandum was issued or for whom a
technical advice request is pending may request that the Associate Chief Counsel
(Domestic), the Associate Chief Counsel (Employee Benefits and Exempt Organiza-
tions), the Associate Chief Counsel (Enforcement Litigation), or the Associate Chief
Counsel (International), as appropriate, limit the retroactive effect of any holding in
the technical advice memorandum or of any subsequent modification or revocation of
the technical advice memorandum.
Examples of when the taxpayer
may request to limit retroactivity
.02For example, a taxpayer may request the national office to exercise the
authority under §7805(b) to limit retroactivity if—
(1)a technical advice memorandum that concerns a continuing transaction is
modified or revoked by, for example, a subsequent revenue ruling or final regulations;
(2)during the course of an examination of the taxpayer’s return by the district
director or during consideration by the chief, appeals office, a taxpayer is informed
that the district director or the chief, appeals office, will recommend that a technical
advice memorandum, letter ruling, or determination letter be modified or revoked; or
(3)a holding in a technical advice memorandum does not modify or revoke a prior
technical advice memorandum. When germane to a pending technical advice request, a
request to limit the retroactive effect of the holding should be made as part of that
pending technical advice request, either initially or at any time before the technical
advice memorandum is issued by the national office. The national office will consider
a request to limit the retroactive effect of the holding even if the request is not made
before the technical advice memorandum is issued. However, taxpayers are strongly
encouraged to request the application of §7805(b) early during the consideration of
the technical advice request by the national office.
Form of request to limit
retroactivity for a continuing
transaction—before examination
.03A request to limit the retroactive effect of the modification or revocation of a
technical advice memorandum that concerns a continuing transaction, as described in
section 17.02(1) of this revenue procedure, must be made in the form of a request for
a letter ruling if the request is submitted before examination of the return that contains
the transaction that is the subject of the request for the letter ruling. The requirements
for a letter ruling request are given in sections 8 and 11.11 of Rev. Proc. 96-1.
Form of request to limit
retroactivity—in all other cases
.04In all other cases, a taxpayer’s request to limit retroactivity must be made in the
form of a request for technical advice.
The request must meet the general requirements of a technical advice request, which
are given in sections 6 through 8 of this revenue procedure. The request must also—
(1)state that it is being made under §7805(b);
(2)state the relief sought;
(3)explain the reasons and arguments in support of the relief sought (including a
discussion of the five items listed in section 16.06 of this revenue procedure and any
other factors as they relate to the taxpayer’s particular situation); and
(4)include any documents bearing on the request.
The taxpayer’s request, including the statement that the request is being made under
§ 7805(b), must be submitted to the district director or the chief, appeals office, who
must then forward the request to the national office for consideration.

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Taxpayer’s right to a conference.05When a request for technical advice concerns only the application of §7805(b),
the taxpayer has the right to a conference in the national office in accordance with the
provisions of section 12 of this revenue procedure. In accordance with section 12.02
of this revenue procedure, the examining officer or appeals officer will be offered the
opportunity to attend the conference on the §7805(b) issue. Section 12.02 of this
revenue procedure also provides that other Service representatives are allowed to
participate in the conference.
If the request for application of §7805(b) is included in the request for technical
advice on the substantive issues or is made before the conference of right on the
substantive issues, the §7805(b) issues will be discussed at the taxpayer’s one
conference of right.
If the request for the application of §7805(b) is made as part of a pending technical
advice request after a conference has been held on the substantive issues and the
Service determines that there is justification for having delayed the request, then the
taxpayer will have the right to one conference of right concerning the application of
§ 7805(b), with the conference limited to discussion of this issue only.
SECTION 18. WHAT SIGNIFICANT
CHANGES HAVE BEEN MADE TO
REV. PROC. 95–2?
.01Section 1 is amended to clarify that any reference to chief, examination
division, includes, when appropriate, the chief, employee plans/exempt organizations
division.
.02Because the Service and the taxpayer cannot consent under §6501(c)(4) to
extend the period of limitations for assessment of estate taxes, sections 2 and 7.02 are
amended to provide that if a case is docketed for an estate tax issue of a taxpayer
while a request for technical advice on the same issue of the same taxpayer is
pending, the national office may issue the technical advice memorandum if the
appropriate appeals officer and counsel for the Government agree, by memorandum, to
the issuance of the technical advice memorandum.
.03Section 7.03 is amended to provide that the district or appeals office’s decision
whether to request technical advice should not be influenced by the fact that the issue
is raised late in the examination or appeals process.
.04Sections 8.02 and 14.11(1) are amended to clarify that a stamped signature is
not permitted on, respectively, a deletions statement and a penalties of perjury
statement.
.05Section 8.04 is redesignated as section 8.05 in this revenue procedure.
.06New section 8.04 is added to provide that the district or appeals office must
submit: (1) two copies of the request for technical advice to the national office; and
(2) one copy of the request for technical advice to the Issue or Industry Specialist if
the request involves a designated issue or industry under the Industry Specialization
Program.
.07Section 9.03 is amended to provide that the option of not issuing technical
advice by the national office applies when the district director or chief, appeals office,
and the taxpayer cannot agree on the material facts and the request for technical
advice does not involve the issue of whether a letter ruling should be modified or
revoked. If a technical advice request involves the issue of whether a letter ruling
should be modified or revoked, the national office will issue technical advice.
.08Section 12.02 is amended to clarify that the examining officer or appeals officer
will be offered the opportunity to attend the taxpayer’s conference of right.
.09Section 12.09 is amended to clarify that the examining officer or appeals officer
will be offered the opportunity to participate in any additional taxpayer’s conference,
including a conference with an official higher than the branch level.
SECTION 19. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
Rev. Proc. 95–2, 1995–1 C.B. 365, is superseded.

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SECTION 20. WHAT IS THE
EFFECTIVE DATE OF THIS
REVENUE PROCEDURE?
This revenue procedure is effective January 2, 1996.
DRAFTING INFORMATIONThe principal author of this revenue procedure is Kathleen Reed of the Office of
Assistant Chief Counsel (Passthroughs and Special Industries). For further information
regarding this revenue procedure for matters under the jurisdiction of—
(1)the Associate Chief Counsel (Domestic) or the Associate Chief Counsel
(Employee Benefits and Exempt Organizations), contact Ms. Reed at (202) 622-3110
(not a toll-free call);
(2)the Associate Chief Counsel (International), contact Gerard Traficanti at (202)
622-3830 (not a toll-free call);
(3)the Associate Chief Counsel (Enforcement Litigation), contact Peter J. Devlin at
(202) 622-3600 (not a toll-free call);
(4)the Assistant Commissioner (Examination), contact Susan Blake at (202)
622-3664 (not a toll-free call); or
(5)the National Director of Appeals, contact Pam Robinson at (202) 401-4169 (not
a toll-free call).

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INDEX
References are to sections in Rev. Proc. 96–2
Additional Information
—procedure for submission............................................................. 14.05, 14.11, 14.12
after conference............................................................................... 12.10
—proposed deletions under §6110.................................................................... 8.02
Conferences
—offered.................................................................................... 9.02, 12.01
after conference of right........................................................................ 12.09
exceptions......................................................................... 9.07, 10.04, 14.13
—scheduling......................................................................................... 12
request to limit retroactivity.............................................................. 12.07, 17.05
telephone conferences.......................................................................... 12.11
Definitions
—national office...................................................................................... 1
—taxpayer............................................................................................ 1
—technical advice..................................................................................... 2
Discussions with taxpayers
—technical advice memorandum..................................................................... 15.02
—technical advice request.......................................................................... 14.09
Employee Plans and Exempt Organizations
—application of §6104............................................................................. 9.06
—jurisdiction of Assistant Commissioner (Employee Plans and Exempt Organizations)....................... 4.02
Extension of Time
—to appeal decision not to request
technical advice............................................................................... 10.02
—to disagree with statement of facts
in technical advice request.................................................................. 9.03, 9.04
—to schedule conference..................................................................... 12.03, 12.04
—to submit additional information............................................................. 12.10, 14.11
Penalties of Perjury Statement
— form......................................................................................... 14.11(1)
—required with additional information......................................................... 12.10, 14.11
—signature requirements......................................................................... 14.11(1)
Power of Attorney .................................................................................... 8.05
Public Disclosure Under §6110
—deletion statement required.................................................................... 8.02, 9.07
exception when §6104 applies................................................................... 9.06
failure to submit......................................................................... 9.05, 14.02
signature requirements........................................................................... 8.02
—notice of intention to disclose............................................................... 14.14, 15.03
protesting deletions not made............................................................. 14.13, 15.04
Retroactive Effect
—in general................................................................................... 16.02–06
on letter ruling................................................................................ 16.06
—request to limit retroactivity......................................................................... 17
examples of when a taxpayer may request
to limit retroactive effect....................................................................... 17.02
format of request........................................................................ 17.03, 17.04
scheduling conference.................................................................... 12.07, 17.05

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Revenue Rulings
—effect on a continuing transaction.................................................................. 16.04
request to limit retroactivity............................................................ 17.02(1), 17.03
Section 301.9100–1 Relief............................................................................... 5
Status of Technical Advice Request
—to district or appeals office........................................................... 13.02, 14.08, 14.10
—to taxpayer............................................................................... 13.01, 14.09
Where to Send
—additional information...................................................................... 12.10, 14.12
—technical advice request from appeals office......................................................... 8.03
—technical advice request from district office.......................................................... 8.03
Withdrawal of Technical Advice Request.................................................................. 11

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26 CFR 601.201: Rulings and determination
letters.
Rev. Proc. 96–3
SECTION 1. PURPOSE AND NATURE
OF CHANGES
.01The purpose of this revenue
procedure is to update Rev. Proc. 95–3,
1995–1 C.B. 385, as amplified and
modified by subsequent revenue proce-
dures, by providing a revised list of
those areas of the Internal Revenue
Code under the jurisdiction of the
Associate Chief Counsel (Domestic)
and the Associate Chief Counsel
(Employee Benefits and Exempt Orga-
nizations) relating to issues on which
the Internal Revenue Service will not
issue advance letter rulings or deter-
mination letters. For a list of areas
under the jurisdiction of the Associate
Chief Counsel (International) relating
to international issues on which the
Service will not issue advance letter
rulings or determination letters, see
Rev. Proc. 96–7, this Bulletin. For a
list of areas under the jurisdiction of
the Assistant Commissioner (Employee
Plans and Exempt Organizations) relat-
ing to issues, plans or plan amendments
on which the Service will not issue
letter rulings and determination letters,
see, respectively, section 8 of Rev.
Proc. 96–4, this Bulletin, and section
3.02 of Rev. Proc. 96–6, this Bulletin.
.02Changes
(1)Old section 4.01(21), dealing
with §302(b)(4) and (e), has been
clarified. It now specifically states that
this ordinarily no-rule area does not
apply to partial liquidations that qualify
as §302(e)(2) business terminations.
(2)New sections 4.02(2) and (3)
have been added to incorporate provi-
sions contained in section 7.03 of Rev.
Proc. 96–1, this Bulletin, dealing with
integrated transactions and interrelated
items or sub-methods of accounting.
(3)New section 5.05, dealing with
§ 104, has been added to the under
study no-rule area to indicate that the
Service will not rule as to whether
amounts received are excludable from
gross income under §104(a)(2) in
situations affected by Commissioner v.
Schleier, 515 U.S.
(1995), 115 S.
Ct. 2159. See Notice 95–45, 1995–34
I.R.B. 20.
(4)Old section 5.14, dealing with
certain aspects of the interrelationship
between §368(a)(1)(B) or §351(a) and
§ 368(a)(1)(A) and (a)(2)(E), has been
deleted. See preamble to T.D. 8648
published in the Federal Register on
December 21, 1995 (60 Fed. Reg.
66077).
(5)New section 5.23, dealing with
§ 2601, has been added to the under
study no-rule area to indicate that the
Service will not rule as to whether a
trust that is excepted from the applica-
tion of the generation-skipping transfer
tax because it was irrevocable on
September 25, 1985, will lose its
excepted status if it is moved to a situs
outside the United States. See Rev.
Proc. 95–50, 1995–50 I.R.B. 16.
(6)Old section 6.02, dealing with
§ 446, has been revised to include
method of accounting changes for (i)
certain banks in the Eighth Circuit
seeking to change to the cash method
for stated interest on certain short-term
loans; (ii) certain small resellers, for-
merly small resellers, or reseller-
producers changing their method of
accounting for costs subject to §263A;
(iii) certain taxpayers on a simplified
production or simplified resale method
of accounting for fewer than 3 taxable
years electing an historic absorption
ratio under §263A; (iv) certain tax-
payers changing their method of ac-
counting for interest costs subject to
§ 263A; and, in some situations, certain
taxpayers seeking to use an alternative
method under §461(h) for the inclu-
sion of common improvement costs in
basis. See Notice 95–57, 1995–45
I.R.B. 12; and Rev. Procs. 95–33,
1995–28 I.R.B. 7; 95–25, 1995–1 C.B.
701; 95–19, 1995–1 C.B. 664; and 92–
29, 1992–1 C.B. 748. Also, this section
has been updated by deleting references
to Rev. Procs. 84–28, 1984–1 C.B. 475,
and 84–27, 1984–1 C.B. 469.
SECTION 2. BACKGROUND AND SCOPE
OF APPLICATION
.01 Background
Whenever appropriate in the interest
of sound tax administration, it is the
policy of the Service to answer in-
quiries of individuals and organizations
regarding their status for tax purposes
and the tax effects of their acts or
transactions, prior to the filing of
returns or reports that are required by
the revenue laws.
There are, however, certain areas in
which, because of the inherently factual
nature of the problems involved, or for
other reasons, the Service will not issue
advance rulings or determination let-
ters. These areas are set forth in four
sections of this revenue procedure.
Section 3 reflects those areas in which
advance rulings and determinations will
not be issued. Section 4 sets forth those
areas in which they will not ordinarily
be issued. ‘‘Not ordinarily’’ means that
unique and compelling reasons must be
demonstrated to justify the issuance of
a ruling or determination letter. Those
sections reflect a number of specific
questions and problems as well as
general areas. Section 5 lists specific
areas for which the Service is tem-
porarily not issuing advance rulings
and determinations because those mat-
ters are under extensive study. Finally,
section 6 of this revenue procedure lists
specific areas where the Service will
not ordinarily issue advance rulings
because the Service has provided auto-
matic approval procedures for these
matters.
See Rev. Proc. 96–1, page 8, this
Bulletin, particularly section 7 cap-
tioned ‘‘Under What Circumstances
Does the Service Have Discretion to
Issue Letter Rulings and Determination
Letters?’’ for general instructions and
other situations in which the Service
will not or ordinarily will not issue
letter rulings or determination letters.
With respect to the items listed,
revenue rulings or revenue procedures
may be published in the Internal
Revenue Bulletin from time to time to
provide general guidelines regarding
the position of the Service.
Additions or deletions to this reve-
nue procedure as well as restatements
of items listed will be made by
modification of this revenue procedure.
Changes will be published as they
occur throughout the year and will be
incorporated annually in a new revenue
procedure published as the third reve-
nue procedure of the year. These lists
should not be considered all-inclusive.
Decisions not to rule on individual
cases (as contrasted with those that
present significant pattern issues) are
not reported in this revenue procedure
and will not be added to subsequent
revisions.
.02 Scope of Application
This revenue procedure does not
preclude the submission of requests for
technical advice to the national office
from the Office of a District Director
of the Internal Revenue or a Chief,
Appeals Office.

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SECTION 3. AREAS IN WHICH
RULINGS OR DETERMINATION
LETTERS WILL NOT BE ISSUED
.01 Specific questions and problems.
(1)Section 79.—Group-Term Life
Insurance Purchased for Employees.—
Whether a group insurance plan for 10
or more employees qualifies as group-
term insurance, if the amount of
insurance is not computed under a
formula that would meet the require-
ments of §1.79–1(c)(2)(ii) of the In-
come Tax Regulations if the group
consisted of fewer than 10 employees.
(2) Section 83.—Property Trans-
ferred in Connection with Performance
of Services.—Whether a restriction
constitutes a substantial risk of for-
feiture, if the employee is a controlling
shareholder. Also, whether a transfer
has occurred, if the amount paid for the
property involves a nonrecourse
obligation.
(3)Section 105(h).—Amount Paid to
Highly Compensated Individuals Under
Discriminatory Self-Insured Medical
E x p e n s e R e i m b u r s e m e n t P l a n . —
Whether, following a determination
that a self-insured medical expense
reimbursement plan is discriminatory,
that plan had previously made reason-
able efforts to comply with tax anti-
discrimination rules.
( 4 ) S e c t i o n 1 1 7 . — Q u a l i f i e d
Scholarships.—Whether an employer-
related scholarship or fellowship grant
is excludible from the employee’s gross
income, if there is no intermediary
private foundation distributing the
grants, as there was in Rev. Proc. 76–
47, 1976–2 C.B. 670.
(5)Section 119.—Meals or Lodging
Furnished for the Convenience of the
Employer.—Whether the value of
meals or lodging is excludible from
gross income by an employee who is a
c o n t r o l l i n g s h a r e h o l d e r o f t h e
employer.
(6)Sections 121 and 1034.—One-
Time Exclusion of Gain from Sale of
Principal Residence by Individual Who
Has Attained Age 55; Rollover of Gain
on Sale of Principal Residence.—
Whether property qualifies as the tax-
payer’s principal residence.
(7)Section 125.—Cafeteria Plans.—
Whether amounts used to provide
group-term life insurance under §79,
accident and health benefits under
§§105 and 106, and dependent care
assistance programs under §129 are
includible in the gross income of
participants and considered ‘‘wages’’
for purposes of §§3401, 3121, and
3306 when the benefits are offered
through a cafeteria plan.
(8)Section 162.—Trade or Business
Expenses.—Whether compensation is
reasonable in amount.
(9)Section 163.—Interest.—The in-
come tax consequences of transactions
involving ‘‘shared appreciation mort-
gage’’ (SAM) loans in which a tax-
payer, borrowing money to purchase
real property, pays a fixed rate of
interest on the mortgage loan below the
prevailing market rate and will also pay
the lender a percentage of the apprecia-
tion in value of the real property upon
termination of the mortgage. This ap-
plies to all SAM arrangements where
the loan proceeds are used for commer-
cial or business activities, or where
used to finance a personal residence, if
the facts are not similar to those
described in Rev. Rul. 83-51, 1983–1
C.B. 48. (Also §§61, 451, 461, 856,
1001, and 7701.)
(10)Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a
taxpayer who advances funds to a
charitable organization and receives
therefor a promissory note may deduct
as contributions, in one taxable year or
in each of several years, amounts
forgiven by the taxpayer in each of
several years by endorsement on the
note.
(11)Section 213.—Medical, Dental,
Etc., Expenses.—Whether a capital ex-
penditure for an item that is ordinarily
used for personal, living, or family
purposes, such as a swimming pool,
has as its primary purpose the medical
care of the taxpayer or the taxpayer’s
spouse or dependent, or is related
directly to such medical care.
( 1 2 ) S e c t i o n 2 6 4 ( b ) . — C e r t a i n
Amounts Paid in Connection with
Insurance Contracts.—Whether ‘‘sub-
stantially all’’ the premiums of a
contract of insurance are paid within a
period of 4 years from the date on
which the contract is purchased. Also,
whether an amount deposited is in
payment of a ‘‘substantial number’’ of
future premiums on such a contract.
(13) Section 264(c)(1).—Certain
Amounts Paid in Connection with
I n s u r a n c e C o n t r a c t s . — W h e t h e r
§ 264(c)(1) applies.
(14) Section 269.—Acquisitions
Made to Evade or Avoid Income
Tax.—Whether an acquisition is within
the meaning of §269.
(15)Section 274.—Disallowance of
C e r t a i n E n t e r t a i n m e n t , E t c . ,
Expenses.—Whether a taxpayer who is
traveling away from home on business
may, in lieu of substantiating the actual
cost of meals, deduct a fixed per-day
amount for meal expenses that differs
from the amount prescribed in Rev.
Proc. 89–67, 1989–2 C.B. 795 (prior to
January 1, 1991), in Rev. Proc. 90–60,
1990–2 C.B. 651 (after December 31,
1990, and prior to March 1, 1992), in
Rev. Proc. 92–17, 1992–1 C.B. 679 (on
or after March 1, 1992, and prior to
March 12, 1993), in Rev. Proc. 93–21,
1993–1 C.B. 529 (on or after March
12, 1993, and prior to January 1,
1994), in Rev. Proc. 93-50, 1993–2
C.B. 586 (on or after January 1, 1994,
and prior to January 1, 1995), or in
Rev. Proc. 94–77 1994–2 C.B. 825 (on
or after January 1, 1995).
(16)Section 302.—Distributions in
Redemption of Stock. —Whether
§ 302(b) applies when the considera-
tion given in redemption by a corpora-
tion consists entirely or partly of its
notes payable, and the shareholder’s
stock is held in escrow or as security
for payment of the notes with the
possibility that the stock may or will be
returned to the shareholder in the
future, upon the happening of specific
defaults by the corporation.
(17)Section 302.—Distributions in
R e d e m p t i o n o f S t o c k . — W h e t h e r
§ 302(b) applies when the considera-
tion given in redemption by a corpora-
tion in exchange for a shareholder’s
stock consists entirely or partly of the
corporation’s promise to pay an amount
based on, or contingent on, future
earnings of the corporation, when the
promise to pay is contingent on work-
ing capital being maintained at a
certain level, or any other similar
contingency.
(18)Section 302.—Distributions in
R e d e m p t i o n o f S t o c k . — W h e t h e r
§ 302(b) applies to a redemption of
stock, if after the redemption the
distributing corporation uses property
that is owned by the shareholder from
whom the stock is redeemed and the
payments by the corporation for the use
of the property are dependent upon the
corporation’s future earnings or are
subordinate to the claims of the corpo-
ration’s general creditors. Payments for
the use of property will not be con-
sidered to be dependent upon future
earnings merely because they are based
on a fixed percentage of receipts or
sales.

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(19)Section 302.—Distributions in
Redemption of Stock.—Whether the
acquisition or disposition of stock de-
scribed in §302(c)(2)(B) has, or does
not have, as one of its principal pur-
poses the avoidance of federal income
taxes within the meaning of that sec-
tion, unless the facts and circumstances
are materially identical to those set
forth in Rev. Rul. 85–19, 1985–1 C.B.
94, Rev. Rul. 79–67, 1979–1 C.B. 128,
Rev. Rul. 77–293, 1977–2 C.B. 91,
Rev. Rul. 57–387, 1957–2 C.B. 225,
Rev. Rul. 56–584, 1956–2 C.B. 179, or
Rev. Rul. 56–556, 1956–2 C.B. 177.
(20)Section 302(b)(4) and (e).—
Redemption from Noncorporate Share-
holder in Partial Liquidation; Partial
Liquidation Defined.—The amount of
working capital attributable to a busi-
ness or portion of a business terminated
that may be distributed in partial
liquidation.
(21)Section 312.—Effect on Earn-
ings and Profits.—The determination of
the amount of earnings and profits of a
corporation.
(22)Section 351.—Transfer to Cor-
poration Controlled by Transferor.—
Whether §351 applies to an exchange
of stock for stock in the formation of a
holding company, and whether the tax-
payer is subject to the consequences of
qualification under that section (such as
nonrecognition and basis consequences)
that are adequately addressed by a
statute, regulation, decision of the
Supreme Court, tax treaty, revenue
ruling, revenue procedure, notice, or
other authority published in the Internal
Revenue Bulletin.
For purposes of this provision, if
such an exchange qualifies under both
§ 351 and another corporate restructur-
ing provision and the other provision is
not covered by this revenue procedure,
the Service will treat any request for a
qualification ruling under the other
provision as a request for a qualifica-
tion ruling under §351. A taxpayer or
the taxpayer’s representative (as the
Service deems appropriate) seeking a
qualification ruling for such an ex-
change under any such other provision
must, accordingly, state to the best of
knowledge and belief that the exchange
does not qualify under §351.
The Service will not rule on the
qualification of an exchange of stock
under §351, even if it is an integral
part of a larger transaction that in-
volves other issues upon which the
Service will rule and it is impossible to
determine the tax consequences of the
larger transaction without making a
determination with regard to the ex-
change of stock. However, in such
event, the Service will rule on the tax
consequences of the larger transaction,
provided the taxpayer or the taxpayer’s
representative (as the Service deems
appropriate) states to the best of
knowledge and belief that the exchange
will (or will not) qualify under §351.
If the Service issues a ruling on the
larger transaction, the ruling will state
that no opinion is expressed as to
whether or not the exchange qualifies
under §351.
SUBISSUES: Additionally, the Serv-
ice will have the discretion to rule on
significant subissues that must be re-
solved to determine whether a transac-
tion that is in this no-rule area qualifies
under §351. However, the Service will
only rule on these subissues if in the
view of the Service they are significant
and not clearly and adequately ad-
dressed by a statute, regulation, deci-
sion of the Supreme Court, tax treaty,
revenue ruling, revenue procedure,
notice, or other authority published in
the Internal Revenue Bulletin.
To obtain a ruling on a subissue, the
taxpayer must explain the significance
of the subissue, set forth the authorities
most closely related to the subissue,
and explain why the subissue is not
resolved by the authorities. The Service
will require the taxpayer or the tax-
payer’s representative (as the Service
deems appropriate) to state to the best
of knowledge and belief that the
transaction will (or will not) qualify
under §351 if the Service rules as the
taxpayer proposes on the subissue.
A taxpayer may seek a presubmis-
sion conference to determine whether a
ruling on the subissue can be obtained
under this section. See section 10.14 of
Rev. Proc. 96–1. If the Service issues a
ruling on a subissue, the ruling will
state that no opinion is expressed as to
whether the transaction in question
qualifies under §351.
COLLATERAL ISSUES: Although
the Service will not rule on the
consequences of qualification of an
exchange of stock for stock in the
formation of a holding company under
§ 351 if the consequences are ade-
quately addressed by a statute, regula-
tion, decision of the Supreme Court,
tax treaty, revenue ruling, revenue
procedure, notice, or other authority
published in the Internal Revenue
Bulletin, it will rule where the con-
sequences of qualification are not ade-
quately addressed by these authorities.
To obtain a ruling on a collateral issue,
the taxpayer or the taxpayer’s repre-
sentative (as the Service deems appro-
priate) must state to the best of
knowledge and belief that the exchange
qualifies under §351, set forth the
authorities most closely related to the
collateral issue, and explain why the
collateral issue is not resolved by these
authorities. If the Service issues a
ruling on a collateral issue, the ruling
will state that no opinion is expressed
as to whether the exchange in question
qualifies under §351.
The Service will also continue to
rule on issues that arise in connection
with an exchange of stock for stock in
the formation of a holding company but
do not depend upon or affect qualifica-
tion under §351.
(23)Section 355.—Distribution of
Stock and Securities of a Controlled
Corporation.—The determination of
whether the corporate business purpose
requirement of §1.355–2(b) is satisfied
in the following situations:
(i)If the reduction of non-federal
taxes is substantially coextensive with
the reduction of federal taxes.
(ii)If a transaction has the potential
of avoiding federal taxes but has
another corporate business purpose,
whether the non-avoidance purpose is
the ‘‘substantial’’ motivation for the
transaction.
(iii)If the stated purpose of the
transaction is to reduce foreign taxes.
(24) Section 368(a)(1)(A).—Defi-
nitions Relating to Corporate Reorgani-
zations.—Whether a transaction con-
stitutes a corporate reorganization
within the meaning of §368(a)(1)(A),
including a transaction that qualifies
under §368(a)(1)(A) by reason of
§ 368(a)(2)(D) or §368(a)(2)(E), and
whether the taxpayer is subject to the
consequences of qualification under
that section (such as nonrecognition
and basis consequences) that are ade-
quately addressed by a statute, regula-
tion, decision of the Supreme Court,
tax treaty, revenue ruling, revenue
procedure, notice, or other authority
published in the Internal Revenue
Bulletin.
For purposes of this provision, if a
transaction qualifies under both
§ 368(a)(1)(A) and another corporate
restructuring provision and the other
provision is not covered by this reve-

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nue procedure, the Service will treat
any request for a qualification ruling
under the other provision as a request
for a qualification ruling under
§ 368(a)(1)(A). A taxpayer or the tax-
payer’s representative (as the Service
deems appropriate) seeking a qualifica-
tion ruling under any such other
provision must, accordingly, state to
the best of knowledge and belief that
the transaction does not qualify under
§ 368(a)(1)(A). The Service will con-
tinue to rule on transactions that
qualify under §368(a)(1)(G), even if
they are also defined in §368(a)(1)(A).
The Service will not rule on the
qualification of a reorganization under
§ 368(a)(1)(A), even if it is an integral
part of a larger transaction that in-
volves other issues upon which the
Service will rule and it is impossible to
determine the tax consequences of the
larger transaction without determining
the tax consequences of the reorganiza-
tion. However, in such event, the Serv-
ice will rule on the tax consequences of
the larger transaction, provided the
taxpayer or the taxpayer’s representa-
tive (as the Service deems appropriate)
states to the best of knowledge and
belief that the reorganization will (or
will not) qualify under §368(a)(1)(A).
If the Service issues a ruling on the
larger transaction, the ruling will state
that no opinion is expressed as to
whether or not the reorganization quali-
fies under §368(a)(1)(A). For example,
the Service will not rule on whether a
transaction constitutes a corporate reor-
ganization within the meaning of
§ 368(a)(1)(A), even if the larger trans-
action also involves the issue of
whether a prior distribution of stock in
a subsidiary containing assets unwanted
by the acquiring corporation qualifies
under §355. See Rev. Rul. 78–251,
1978–1 C.B. 89. However, in such
event, if the taxpayer or the taxpayer’s
representative (as the Service deems
appropriate) states to the best of
knowledge and belief that the merger
qualifies under § 368(a)(1)(A), the
Service will rule as to whether the
prior stock distribution qualifies under
§ 355. Such ruling will state that no
opinion is expressed as to whether or
not the reorganization qualifies under
§ 368(a)(1)(A).
SUBISSUES: Additionally, the Serv-
ice will have the discretion to rule on
significant subissues that must be re-
solved to determine whether the trans-
action qualifies under §368(a)(1)(A)
(including transactions qualifying by
reason of §368(a)(2)(D) or §368(a)-
(2)(E)). However, the Service will only
rule on such subissues if in the view of
the Service they are significant and not
clearly and adequately addressed by a
statute, regulation, decision of the
Supreme Court, tax treaty, revenue
ruling, revenue procedure, notice, or
other authority published in the Internal
Revenue Bulletin. To obtain a ruling on
such a subissue, the taxpayer must
explain the significance of the subissue,
set forth the authorities most closely
related to the subissue, and explain
why the subissue is not resolved by
these authorities. The taxpayer or the
taxpayer’s representative (as the Serv-
ice deems appropriate) will also be
required to state to the best of knowl-
edge and belief that the transaction will
(or will not) qualify under §368(a)-
(1)(A), if the Service rules as the
taxpayer proposes on the subissue.
A taxpayer may seek a presubmis-
sion conference to determine whether a
ruling on the subissue can be obtained
under this section. See section 10.14,
Rev. Proc. 96–1. If the Service issues a
ruling on a subissue, the ruling will
state that no opinion is expressed as to
whether the transaction in question
qualifies under §368(a)(1)(A).
COLLATERAL ISSUES: Although
the Service will not rule on the conse-
quences of qualification as a reorgani-
zation under §368(a)(1)(A) if the con-
sequences are adequately addressed by
a statute, regulation, decision of the
Supreme Court, tax treaty, revenue
ruling, revenue procedure, notice, or
other authority published in the Internal
Revenue Bulletin, it will rule where the
consequences of qualification are not
adequately addressed by these au-
thorities. For example, the Service will
issue a §381(c)(4) ruling in connection
with a §368(a)(1)(A) reorganization.
To obtain a ruling on a collateral issue,
the taxpayer or the taxpayer’s repre-
sentative (as the Service deems appro-
priate) must state to the best of
knowledge and belief that the transac-
tion qualifies under §368(a)(1)(A), set
forth the authorities most closely re-
lated to the collateral issue, and explain
why the collateral issue is not resolved
by these authorities. If the Service is-
sues a ruling on a collateral issue, the
ruling will state that no opinion is ex-
pressed as to whether the transaction in
question qualifies under §368(a)(1)(A).
The Service will also continue to
rule on issues that arise in connection
with a transaction under §368(a)(1)(A)
but do not depend upon or affect quali-
fication under §368(a)(1)(A).
(25) Section 368(a)(1)(B).—Defini-
tions Relating to Corporate Reorganiza-
tions.—Whether the acquisition of
stock in the formation of a holding
company constitutes a corporate reorga-
nization within the meaning of §368-
(a)(1)(B), and whether the taxpayer is
subject to the consequence of qualifica-
tion under that section (such as nonrec-
ognition and basis consequences) that
are adequately addressed by a statute,
regulation, decision of the Supreme
Court, tax treaty, revenue ruling, reve-
nue procedure, notice, or other author-
ity published in the Internal Revenue
Bulletin.
For purposes of this provision, if
such an acquisition of stock qualifies
under both §368(a)(1)(B) and another
corporate restructuring provision, and
the other provision is not covered by
this revenue procedure, the Service will
treat any request for a qualification
ruling under the other provision as a
request for a qualification ruling under
§ 368(a)(1)(B). A taxpayer or the tax-
payer’s representative (as the Service
deems appropriate) seeking a qualifica-
tion ruling for such an acquisition
under any such other provision must,
accordingly, state to the best of knowl-
edge and belief that the acquisition
does not qualify under §368(a)(1)(B).
The Service will not rule on the
qualification of an acquisition of stock
under §368(a)(1)(B), even if it is an
integral part of a larger transaction that
involves other issues upon which the
Service will rule and it is impossible to
determine the tax consequences of the
larger transaction without determining
the tax consequences of the acquisition.
However, in such event, the Service
will rule on the tax consequences of
the larger transaction, provided the
taxpayer or the taxpayer’s representa-
tive (as the Service deems appropriate)
states to the best of knowledge and
belief that the acquisition will (or will
not) qualify under §368(a)(1)(B). If
the Service issues a ruling on the larger
transaction, the ruling will state that no
opinion is expressed as to whether or
not the acquisition qualifies under
§ 368(a)(1)(B).
SUBISSUES: Additionally, the Serv-
ice will have the discretion to rule on
significant subissues that must be re-
solved to determine whether a transac-
tion that is in this no-rule area qualifies
under §368(a)(1)(B). However, the

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Service will only rule on these sub-
issues if in the view of the Service they
are significant and not clearly and
adequately addressed by a statute,
regulation, decision of the Supreme
Court, tax treaty, revenue ruling, reve-
nue procedure, notice, or other au-
thority published in the Internal Reve-
nue Bulletin. To obtain a ruling on a
subissue, the taxpayer must explain the
significance of the subissue, set forth
the authorities most closely related to
the subissue, and explain why the
subissue is not resolved by these
authorities. The Service will require the
taxpayer or the taxpayer’s representa-
tive (as the Service deems appropriate)
to state to the best of knowledge and
belief that the acquisition will (or will
not) qualify under §368(a)(1)(B), if
the Service rules as the taxpayer
proposes on the subissue.
A taxpayer may seek a presubmis-
sion conference to determine whether a
ruling on the subissue can be obtained
under this section. See section 10.14,
Rev. Proc. 96–1. If the Service issues a
ruling on a subissue, the ruling will
state that no opinion is expressed on
whether the acquisition in question
qualifies under §368(a)(1)(B).
COLLATERAL ISSUES: Although
the Service will not rule on the
consequence of qualification of an
acquisition of stock in the formation of
a holding company under §368(a)-
(1)(B) if the consequences are ade-
quately addressed by a statute, regula-
tion, decision of the Supreme Court,
tax treaty, revenue ruling, revenue
procedure, notice, or other authority
published in the Internal Revenue
Bulletin, it will rule where the con-
sequences of qualification are not ade-
quately addressed by these authorities.
To obtain a ruling on a collateral issue,
the taxpayer or the taxpayer’s repre-
sentative (as the Service deems appro-
priate) must state to the best of
knowledge and belief that the acquisi-
tion qualifies under §368(a)(1)(B), set
forth the authorities most closely re-
lated to the collateral issue, and explain
why the collateral issue is not resolved
by these authorities. If the Service
issues a ruling on a collateral issue, the
ruling will state that no opinion is
expressed as to whether the acquisition
in question qualifies under §368(a)-
(1)(B).
The Service will also continue to
rule on issues that arise in connection
with an acquisition of stock in the
formation of a holding company but do
not depend upon or affect qualification
under §368(a)(1)(B).
(26) Section 368(a)(1)(B).—Defi-
nitions Relating to Corporate Reorgani-
zations.—The acceptability of an
estimation procedure or the accept-
ability of a specific sampling procedure
to determine the basis of stock acquired
by an acquiring corporation in a
r e o r g a n i z a t i o n d e s c r i b e d i n
§ 368(a)(1)(B).
(27) Section 368(a)(1)(E).—Defini-
tions Relating to Corporate Reorgani-
zations.—Whether a transaction con-
stitutes a corporate recapitalization
within the meaning of §368(a)(1)(E)
(or a transaction that also qualifies
under §1036) when either (i) the
transaction involves a closely held
corporation or (ii) the issues involved
are substantially similar to those de-
scribed in the following revenue
rulings:
Rev. Rul. 82–34, 1982–1 C.B. 59
(continuity of business enterprise);
Rev. Rul. 77–479, 1977–2 C.B. 119
(continuity of shareholder interest);
Rev. Rul. 77–238, 1977–2 C.B. 115
(conversion of shares of one class of
stock into shares of another class, as
p e r m i t t e d b y c e r t i f i c a t e o f
incorporation);
Rev. Rul. 74–269, 1974–1 C.B. 87
(major shareholder’s exchange of com-
mon stock for preferred stock);
Rev. Rul. 56–654, 1956–2 C.B. 216
(corporate charter amended to provide
preferred stock with increased redemp-
tion and liquidation value, where com-
mon and preferred stock held pro rata);
Rev. Rul. 55–112, 1955–1 C.B. 344
(common stock exchanged for preferred
stock); and
Rev. Rul. 54–482, 1954–2 C.B. 148
(old common stock exchanged for new
common stock).
The above no-ruling area does not
apply, however, to any corporate recap-
italization that is an integral part of a
larger transaction, if it is impossible to
determine the tax consequences of the
larger transaction without making a
determination with regard to the
recapitalization.
(28) Section 368(a)(1)(F).—Defini-
tions Relating to Corporate Reorganiza-
tions.—Whether a transaction consti-
tutes a reorganization within the
meaning of §368(a)(1)(F), and whether
the taxpayer is subject to the con-
sequences of qualification under that
section (such as nonrecognition and
basis consequences) that are adequately
addressed by a statute, regulation,
decision of the Supreme Court, tax
treaty, revenue ruling, revenue proce-
dure, notice, or other authority pub-
lished in the Internal Revenue Bulletin.
For purposes of this provision, if a
transaction qualifies under both
§ 368(a)(1)(F) and another corporate
restructuring provision, and the other
provision is not covered by this reve-
nue procedure, the Service will treat
any request for a qualification ruling
under the other provision as a request
for a qualification ruling under
§ 368(a)(1)(F). A taxpayer or the tax-
payer’s representative (as the Service
deems appropriate) seeking a qualifica-
tion ruling under any such other
provision must, accordingly, state to
the best of knowledge and belief that
the transaction does not qualify under
§ 368(a)(1)(F).
The Service will not rule on the
qualification of a reorganization under
§ 368(a)(1)(F), even if it is an integral
part of a larger transaction that in-
volves other issues upon which the
Service will rule and it is impossible to
determine the tax consequences of the
larger transaction without determining
the tax consequences of the reorganiza-
tion. However, in such event, the
Service will rule on the tax con-
sequences of the larger transaction,
provided the taxpayer or the taxpayer’s
representative (as the Service deems
appropriate) states to the best of
knowledge and belief that the reorgani-
zation will (or will not) qualify under
§ 368(a)(1)(F). If the Service issues a
ruling on the larger transaction, the
ruling will state that no opinion is
expressed as to whether or not the
r e o r g a n i z a t i o n q u a l i f i e s u n d e r
§ 368(a)(1)(F).
SUBISSUES: Additionally, the Serv-
ice will have the discretion to rule on
significant subissues that must be re-
solved to determine whether a transac-
tion that is in this no-rule area qualifies
under §368(a)(1)(F). However, the
Service will only rule on such sub-
issues if in the view of the Service they
are significant and not clearly and ade-
quately addressed by a statute, regula-
tion, decision of the Supreme Court,
tax treaty, revenue ruling, revenue pro-
cedure, notice, or other authority pub-
lished in the Internal Revenue Bulletin.
To obtain a ruling on such a subissue,
the taxpayer must explain the signifi-
cance of the subissue, set forth the
authorities most closely related to the

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subissue, and explain why the subissue
is not resolved by these authorities.
The Service will require the taxpayer
or the taxpayer’s representative (as the
Service deems appropriate) to state to
the best of knowledge and belief that
the transaction will (or will not) qualify
under §368(a)(1)(F), if the Service
rules as the taxpayer proposes on the
subissue.
A taxpayer may seek a presubmis-
sion conference to determine whether a
ruling on the subissue can be obtained
under this section. See section 10.14,
Rev. Proc. 96–1. If the Service issues a
ruling on a subissue, the ruling will
state that no opinion is expressed on
whether the transaction in question
qualifies under §368(a)(1)(F).
COLLATERAL ISSUES: Although
the Service will not rule on the conse-
quences of qualification as a reorgani-
zation under §368(a)(1)(F) if the con-
sequences are adequately addressed by
a statute, regulation, decision of the
Supreme Court, tax treaty, revenue
ruling, revenue procedure, notice, or
other authority published in the Internal
Revenue Bulletin, it will rule where the
consequences of qualification are not
adequately addressed by these authori-
ties. To obtain a ruling on a collateral
issue, the taxpayer or the taxpayer’s
representative (as the Service deems
appropriate) must state to the best of
knowledge and belief that the transac-
tion qualifies under §368(a)(1)(F), set
forth the authorities most closely re-
lated to the collateral issue and explain
why the collateral issue is not resolved
by these authorities. If the Service is-
sues a ruling on a collateral issue, the
ruling will state that no opinion is ex-
pressed as to whether the transaction in
question qualifies under §368(a)(1)(F).
The Service will also continue to
rule on issues that arise in connection
with a transaction under §368(a)(1)(F)
but do not depend upon or affect
qualification under §368(a)(1)(F).
(29)Section 425.—Substitution or
A s s u m p t i o n o f I n c e n t i v e S t o c k
Options.—Whether the substitution of a
new Incentive Stock Option (‘‘ISO’’)
for an old ISO, or the assumption of an
old ISO, by an employer by reason of a
corporate transaction constitutes a mod-
ification which results in the issuance
of a new option by reason of failing to
satisfy the spread test requirement of
§ 425(a)(1) or the ratio test requirement
of §1.425–1(a)(4). The Service will
continue to rule on the issue of whether
the new ISO or the assumption of the
old ISO gives the employee additional
benefits not present under the old op-
tion within the meaning of §425(a)(2).
(30)Section 451.—General Rule for
Taxable Year of Inclusion.—The tax
consequences of a non-qualified un-
funded deferred-compensation arrange-
ment with respect to a controlling
shareholder-employee eligible to par-
ticipate in the arrangement.
(31)Section 451.—General Rule for
Taxable Year of Inclusion.—The tax
consequences of unfunded deferred-
compensation arrangements where the
arrangements fail to meet the require-
ments of Rev. Proc. 92–65, 1992–2
C.B. 428, and Rev. Proc. 71–19, 1971–
1 C.B. 698.
(32)Sections 451 and 457.—General
Rule for Taxable Year of Inclusion;
Deferred Compensation Plans of State
and Local Governments and Tax-
Exempt Organizations.—The tax con-
sequences to unidentified independent
contractors in nonqualified unfunded
deferred-compensation plans. This ap-
plies to plans established under §451
by employers in the private sector and
to plans of state and local governments
and tax-exempt organizations under
§ 457. However, a ruling with respect
to a specific independent contractor’s
participation in such a plan may be
issued.
(33) Section 641.—Imposition of
Tax.—Whether the period of admin-
istration or settlement of an estate or a
trust (other than a trust described in
§ 664) is reasonable or unduly pro-
longed.
(34)Section 642(c).—Deduction for
Amounts Paid or Permanently Set
Aside for a Charitable Purpose.—
Allowance of an unlimited deduction
for amounts set aside by a trust or
estate for charitable purposes when
there is a possibility that the corpus of
the trust or estate may be invaded.
(35)Section 664.—Charitable Re-
mainder Trusts.—Whether the settle-
ment of a charitable remainder trust
upon the termination of the noncharita-
ble interest is made within a reasonable
period of time.
(36)Section 704(e).—Family Part-
nerships.—Matters relating to the valid-
ity of a family partnership when capital
is not a material income producing
factor.
(37) Section 856.—Definition of
Real Estate Investment Trust.—
Whether a corporation whose stock is
‘‘paired’’ with or ‘‘stapled’’ to stock of
another corporation will qualify as a
real estate investment trust under
§ 856, if the activities of the corpora-
tions are integrated.
(38) Section 1034.—See section
3.01(6), above.
(39)Section 1221.—Capital Asset
Defined.—Whether specialty stock al-
located to an investment account by a
registered specialist on a national se-
curities exchange is a capital asset.
(40)Section 1551.—Disallowance of
the Benefits of the Graduated Corpo-
rate Rates and Accumulated Earnings
Credit.—Whether a transfer is within
§ 1551.
(41) Section 2031.—Definition of
Gross Estate.—Actuarial factors for
valuing interests in the prospective
gross estate of a living person.
(42) Section 2512.—Valuation of
Gifts.—Actuarial factors for valuing
prospective or hypothetical gifts of a
donor.
(43) Sections 3121, 3306, and
3401.—Definitions.—For purposes of
determining prospective employment
status, whether an individual will be an
employee or an independent contractor.
A ruling with regard to prior employ-
ment status may be issued.
(44)Section 4980B.—Failure to Sat-
isfy Continuation Coverage Require-
ments of Group Health Plans.—
Whether an action is ‘‘gross miscon-
d u c t ’ ’ w i t h i n t h e m e a n i n g o f
§ 4980B(f)(3)(B). (See section 3.05 of
Rev. Proc. 87–28, 1987–1 C.B. 770,
771.)
(45) Section 7701.—Definitions.—
Whether a foreign arrangement that is a
participant in a domestic arrangement
classified as a partnership for United
States tax purposes will itself be
classified as a partnership.
(46) Section 7701.—Definitions.—
The classification of an instrument that
has certain voting and liquidations
rights in an issuing corporation but
whose dividend rights are determined
by reference to the earnings of a
segregated portion of the issuing corpo-
ration’s assets, including assets held by
a subsidiary.
.02 General Areas.
(1)The results of transactions that
lack a bona fide business purpose or
have as their principal purpose the
reduction of federal taxes.
(2)A matter upon which a court
decision adverse to the Government has

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been handed down and the question of
following the decision or litigating
further has not yet been resolved.
(3) A matter involving alternate
plans of proposed transactions or in-
volving hypothetical situations.
(4)A matter involving the federal
tax consequences of any proposed
federal, state, local or municipal legis-
lation. The Service may provide gen-
eral information in response to an
inquiry.
(5)Whether under Subtitle F (Proce-
dure and Administration) reasonable
cause, due diligence, good faith, clear
and convincing evidence, or other
similar terms that require a factual
determination exist.
(6)Whether a proposed transaction
would subject the taxpayer to a crimi-
nal penalty.
(7)A request that does not comply
with the provisions of Rev. Proc. 96–1.
(8)Whether, under the common law
rules applicable in determining the
employer-employee relationship, a pro-
fessional staffing corporation (loan-out
corporation) or the subscriber is the
employer of individuals, if:
(i)the loan-out corporation hires
employees of the subscriber and as-
signs the employees back to the sub-
scriber, or
(ii)the loan-out corporation assigns
individuals to subscribers for more than
a temporary period (1 year or longer).
SECTION 4. AREAS IN WHICH
RULINGS OR DETERMINATION
LETTERS WILL NOT ORDINARILY BE
ISSUED
.01Specific questions and problems.
(1)Sections 38, 39, 46, and 48.—
General Business Credit; Carryback
and Carryforward of Unused Credits;
Amount of Credit; Energy Credit;
Reforestation Credit.—Application of
these sections where the formal owner-
ship of property is in a party other than
the taxpayer, except when title is held
merely as security.
(2) Section 61.—Gross Income
Defined.—Determination as to who is
the true owner of property in cases
involving the sale of securities, or
participation interests therein, where
the purchaser has the contractual right
to cause the securities, or participation
interests therein, to be purchased by
either the seller or a third party.
(3)Sections 61 and 163.—Gross
Income Defined; Interest.—Determi-
nations as to who is the true owner of
property or the true borrower of money
in cases in which the formal ownership
of the property, or the liability for the
indebtedness, is in another party.
(4)Section 103.—Interest on State
and Local Bonds.—Whether the inter-
est on state or local bonds will be
excludible from gross income under
§ 103(a), if the proceeds of issues of
bonds (other than advance refunding
issues) are placed in escrow or other-
wise not expended for a governmental
purpose for an extended period of time
even though the proceeds are invested
at a yield that will not exceed the yield
on the state or local bonds prior to
their expenditure.
(5)Section 103.—Interest on State
and Local Bonds.—Whether a state or
local governmental obligation that does
not meet the criteria of section 5 of
Rev. Proc. 89–5, 1989–1 C.B. 774, is
an ‘‘arbitrage bond’’ within the mean-
ing of former §103(c)(2) solely by
reason of the investment of the bond
proceeds in acquired nonpurpose obli-
gations at a materially higher yield
more than 3 years after issuance of the
bonds or 5 years after issuance of the
bonds in the case of construction issues
described in §1.103–13(a)(2)(ii)(E).
(6)Section 141.—Private Activity
Bond; Qualified Bond.—With respect
to requests made pursuant to Rev. Proc.
88–33, 1988–1 C.B. 835, whether state
or local bonds will meet the ‘‘private
business use test’’ and the ‘‘private
security or payment test’’ under
§ 141(b)(1) and (2) in situations in
which the proceeds are used to finance
certain output facilities and, pursuant to
a contract to take, or take or pay for, a
nongovernmental person purchases 30
percent or more of the actual output of
the facility but 10 percent or less of the
subparagraph (5) output of the facility
as defined in § 1.103–7(b)(5)(ii)(b)
(issued under former §103(b)). In
similar situations, the Service will not
ordinarily issue rulings or determina-
tion letters concerning questions arising
under paragraphs (3), (4), and (5) of
§ 141(b).
(7)Sections 142 and 144.—Exempt
Facility Bond; Qualified Small Issue
Bond.—Whether an issue of private
activity bonds meets the requirements
of §142 or §144(a), if the sum of—
(i)the portion of the proceeds used
to finance a facility in which an owner
(or a related person) or a lessee (or a
related person) is a user of the facility
both after the bonds are issued and at
any time before the bonds were issued,
and
(ii)the portion used to pay issuance
costs and non-qualified costs, equals
more than 5 percent of the net pro-
ceeds, as defined in §150(a)(3).
( 8 ) S e c t i o n 1 4 8 . — A r b i t r a g e . —
Whether amounts received as proceeds
from the sale of municipal bond
financed property and pledged to the
payment of debt service or pledged as
collateral for the municipal bond issue
are sinking fund proceeds within the
meaning of §1.103–13(g) (issued un-
der former §103(c)) or replaced pro-
ceeds described in §148(a)(2) (or
former §103(c)(2)(B)).
(9)Section 162.—Trade or Business
Expenses.—Whether the requisite risk
shifting and risk distribution necessary
to constitute insurance are present for
purposes of determining the deduct-
ibility under §162 of amounts paid
(premiums) by a taxpayer for insur-
ance, unless the facts of the transaction
are within the scope of Rev. Rul. 78–
338, 1978–2 C.B. 107, or Rev. Rul.
77–316, 1977–2 C.B. 53.
(10)Sections 162 and 262.—Trade
or Business Expenses; Personal, Living,
and Family Expenses.—Whether ex-
penses are nondeductible commuting
expenses, except for situations gov-
erned by Rev. Rul. 90–23, 1990–1 C.B.
28.
(11) Section 163.—See section
4.01(3), above.
(12)Section 167.—Depreciation.
(i)Useful lives of assets.
(ii)Depreciation rates.
(iii)Salvage value of assets.
(13)Sections 167 and 168.—De-
preciation; Accelerated Cost Recovery
System.—Application of those sections
where the formal ownership of property
is in a party other than the taxpayer
except when title is held merely as
security.
(14)Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a
transfer to a pooled income fund
described in §642(c)(5) qualifies for a
charitable contribution deduction under
§ 170(f)(2)(A).
(15) Section 170(c).—Charitable,
Etc., Contributions and Gifts.—
Whether a taxpayer who transfers
property to a charitable organization
and thereafter leases back all or a
portion of the transferred property may
deduct the fair market value of the

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property transferred and leased back as
a charitable contribution.
(16)Section 170.—Charitable, Etc.,
Contributions and Gifts.—Whether a
transfer to a charitable remainder trust
described in §664 that provides for
annuity or unitrust payments for one or
two measuring lives qualifies for a
c h a r i t a b l e d e d u c t i o n u n d e r
§ 170(f)(2)(A).
(17) Section 216.—Deduction of
Taxes, Interest, and Business Deprecia-
tion by Cooperative Housing Corpora-
tion Tenant-Stockholder.—If a coopera-
tive housing corporation (CHC), as
defined in §216(b)(1), transfers an
interest in real property to a corpora-
tion (not a CHC) in exchange for stock
or securities of the transferee corpora-
tion, which engages in commercial
activity with respect to the real prop-
erty interest transferred, whether (i) the
income of the transferee corporation
derived from the commercial activity,
and (ii) any cash or property (attributa-
ble to the real property interest trans-
ferred) distributed by the transferee
corporation to the CHC will be consid-
ered as gross income of the CHC for
the purpose of determining whether 80
percent or more of the gross income of
the CHC is derived from tenant-
stockholders within the meaning of
§ 216(b)(1)(D).
(18) Section 262.—See section
4.01(10), above.
(19) Section 265(a)(2).—Expenses
and Interest Relating to Tax-Exempt
Income.—Whether indebtedness is in-
curred or continued to purchase or
carry obligations the interest on which
is wholly exempt from the taxes
imposed by subtitle A.
(20)Section 302.—Distributions in
Redemption of Stock.—The tax effect
of the redemption of stock for notes,
when the payments on the notes are to
be made over a period in excess of 15
years from the date of issuance of such
notes.
(21)Section 302(b)(4) and (e).—
Redemption from Noncorporate Share-
holder in Partial Liquidation; Partial
Liquidation Defined.—Whether a dis-
tribution will qualify as a distribution
in partial liquidation under §302(b)(4)
and (e)(1)(A), unless it results in a 20
percent or greater reduction in (i) gross
revenue, (ii) net fair market value of
assets, and (iii) employees. (Partial
liquidations that qualify as §302(e)(2)
business terminations are not subject to
this provision.)
(22)Sections 302(b)(4) and (e), 331,
332, and §346(a).—Effects on Recip-
ients of Distributions in Corporate
Liquidations.—The tax effect of the
liquidation of a corporation preceded or
followed by the reincorporation of all
or a part of the business and assets
when more than a nominal amount of
the stock (that is, more than 20 percent
in value) of both the liquidating corpo-
ration and the transferee corporation is
owned by the same shareholders; or
when a liquidation is followed by the
sale of the corporate assets by the
shareholders to another corporation in
which such shareholders own more
than a nominal amount of the stock
(that is, more than 20 percent in value).
(23)Section 306.—Dispositions of
Certain Stock.—Whether the distribu-
tion or disposition or redemption of
‘‘section 306 stock’’ in a closely held
corporation is in pursuance of a plan
having as one of its principal purposes
the avoidance of federal income taxes
within the meaning of §306(b)(4).
(24)Sections 331 and 332.—See
section 4.01(22), above.
(25)Sections 331 and 346(a).—Gain
or Loss to Shareholders in Corporate
Liquidations.—The tax effect of the
liquidation of a corporation by a series
of distributions, when the distributions
in liquidation are to be made over a
period in excess of 3 years from the
adoption of the plan of liquidation.
( 2 6 ) S e c t i o n 3 4 1 . — C o l l a p s i b l e
Corporations.—Whether a corporation
will be considered to be a ‘‘collapsible
corporation,’’ that is, whether it was
‘‘formed or availed of’’ with the view
of certain tax consequences. However,
ruling requests will be considered on
this matter when the enterprise (i) has
been in existence for a least 20 years
or has clearly demonstrated that it has
realized two-thirds of the taxable in-
come to be derived from the manufac-
turing, constructing, producing, or pur-
chasing of property as stated in
§ 341(b)(1)(A) and as described in
Rev. Rul. 72–48, 1972–1 C.B. 102; (ii)
has had an aggregate change in the
shareholders’ interests of not more than
10 percent during that period (except
for transfers among family members, as
defined in §267(c)(4), or redemptions
of stock to pay death taxes pursuant to
§ 303); and (iii) has conducted substan-
tially the same trade or business during
that period. The period referred to in
(ii) and (iii) above is the lesser of 20
years of corporate existence or the
period in which the enterprise has
realized two-thirds of the taxable in-
come from activities specified in
§ 341(b)(1)(A).
(27) Section 346(a).—See section
4.01(22), above.
(28) Section 346(a).—See section
4.01(25), above.
(29)Section 351.—Transfer to Cor-
poration Controlled by Transferor.—
The tax effect of the transfer when part
of the consideration received by the
transferors consists of an instrument
that is a bond, debenture, or any other
evidence of indebtedness of the trans-
feree and a determination as to whether
the ‘‘indebtedness’’ is properly classi-
fied as debt or equity is required in
order to establish that the requirements
of §351 are met.
(30)Section 351.—Transfer to Cor-
poration Controlled by Transferor.—
Whether §351 applies to the transfer
of an interest in real property by a
cooperative housing corporation (as
described in §216(b)(1)) to a corpora-
tion in exchange for stock or securities
of the transferee corporation, if the
transferee engages in commercial ac-
tivity with respect to the real property
interest transferred.
(31)Section 355.—Distribution of
Stock and Securities of a Controlled
Corporation.—Whether the active busi-
ness requirement of §355(b) is met
when, within the 5-year period de-
scribed in §355(b)(2)(B), a distributing
corporation acquired control of a con-
trolled corporation as a result of the
distributing corporation transferring
cash or other liquid or inactive assets
to the controlled corporation in a
transaction in which gain or loss was
not recognized as a result of the
transfer meeting the requirements of
§ 351(a) or §368(a)(1)(D).
(32)Section 441(i).—Taxable Year
of Personal Service Corporations.—
Whether the principal activity of the
taxpayer during the testing period for
the taxable year is the performance of
personal services within the meaning of
§ 1.441–4T(d)(1)(ii) of the temporary
regulations.
( 3 3 ) S e c t i o n 4 4 8 ( d ) ( 2 ) ( A ) . —
Limitation on Use of Cash Method of
Accounting; Qualified Personal Service
Corporation.—Whether 95 percent or
more of the time spent by employees of
the corporation, serving in their capac-
ity as such, is devoted to the perform-
ance of services within the meaning of
§ 1.448–1T(e)(4)(i) of the temporary
regulations.

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(34)Section 451.—General Rule for
Taxable Year of Inclusion.—The tax
consequences of a nonqualified de-
ferred compensation arrangement using
a grantor trust where the trust fails to
meet the requirements of Rev. Proc.
92–64, 1992–2 C.B. 422.
(35)Section 584.—Common Trust
Funds.—Whether a common trust fund
plan meets the requirements of §584.
(For §584 plan drafting guidance, see
Rev. Proc. 92–51, 1992–1 C.B. 988.)
(36)Section 642.—Special Rules for
Credits and Deductions; Pooled Income
Fund.—Whether a pooled income fund
satisfies the requirements described in
§ 642(c)(5).
(37)Section 664.—Charitable Re-
mainder Trusts.—Whether a charitable
remainder trust that provides for an-
nuity or unitrust payments for one or
two measuring lives satisfies the re-
quirements described in §664.
(38)Sections 671 to 679.—Grantors
and Others Treated as Substantial
Owners.—In a nonqualified, unfunded
deferred compensation arrangement de-
scribed in Rev. Proc. 92–64, the tax
consequences of the use of a trust,
other than the model trust described in
that revenue procedure.
(39) Section 816.—Life Insurance
Company Defined.—Whether the requi-
site risk shifting and risk distribution
necessary to constitute insurance are
present for purposes of determining if a
company is an ‘‘insurance company’’
under §1.801–3(a), unless the facts of
the transaction are within the scope of
Rev. Rul. 78–338, 1978–2 C.B. 107, or
Rev. Rul. 77–316, 1977–2 C.B. 53.
(40) Section 1502.—Regulations.—
Whether a parent cooperative housing
corporation (as defined in §216(b)(1))
will be permitted to file a consolidated
income tax return with its transferee
subsidiary, if the transferee engages in
commercial activity with respect to the
real property interest transferred to it
by the parent.
(41) Section 2055.—Transfers for
Public, Charitable, and Religious
Uses.—Whether a transfer to a pooled
income fund described in §642(c)(5)
qualifies for a charitable deduction
under §2055(e)(2)(A).
(42) Section 2055.—Transfers for
Public, Charitable, and Religious
Uses.—Whether a transfer to a chari-
table remainder trust described in §664
that provides for annuity or unitrust
payments for one or two measuring
lives qualifies for a charitable deduc-
tion under §2055(e)(2)(A).
(43)Section 2522.—Charitable and
Similar Gifts.—Whether a transfer to a
pooled income fund described in
§ 642(c)(5) qualifies for a charitable
deduction under §2522(c)(2)(A).
(44)Section 2522.—Charitable and
Similar Gifts.—Whether a transfer to a
charitable remainder trust described in
§ 664 that provides for annuity or
unitrust payments for one or two
measuring lives qualifies for a chari-
table deduction under §2522(c)(2)(A).
(45) Section 7701.—Definitions.—
Whether what is generally known as a
foreign corporation will be classified as
a partnership for United States tax
purposes, if the taxpayer requests clas-
sification as a partnership.
(46) Section 7701.—Definitions.—
Whether a foreign partnership will be
classified as an association for United
States tax purposes, if the taxpayer
requests classification as an association.
(47) Section 7701.—Definitions.—
Whether a limited partnership lacks the
corporate characteristics of limited lia-
bility and continuity of life if the
limited partnership (i) is formed pur-
suant to a state limited partnership act
that the Service has determined in a
revenue ruling is a statute that corre-
sponds to the Uniform Limited Part-
nership Act, and (ii) meets the other
requirements contained in Rev. Proc.
92–88, 1992–2 C.B. 496.
.02 General areas.
(1)Any matter in which the deter-
mination requested is primarily one of
fact, e.g., market value of property, or
whether an interest in a corporation is
to be treated as stock or indebtedness.
(2)Situations where the requested
ruling deals with only part of an
integrated transaction. Generally, a let-
ter ruling will not be issued on only
part of an integrated transaction. If,
however, 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
the Branch having jurisdiction for the
matters on which the taxpayer is
seeking a letter ruling to discuss
whether a letter ruling will be issued
on part of the transaction.
(3)Situations where two or more
items or sub-methods of accounting are
interrelated. If two or more items or
sub-methods of accounting are interre-
lated, ordinarily a letter ruling will not
be issued on a change in accounting
method involving only one of the items
or sub-methods.
(4)The tax effect of any transaction
to be consummated at some indefinite
future time.
(5)Any matter dealing with the
question of whether property is held
primarily for sale to customers in the
ordinary course of a trade or business.
(6)The tax effect of a transaction if
any part of the transaction is involved
in litigation among the parties affected
by the transaction, except for transac-
t i o n s i n v o l v i n g b a n k r u p t c y
reorganizations.
(7)(a)Situations where the taxpayer
or a related party is domiciled or
organized in a foreign jurisdiction with
which the United States does not have
an effective mechanism for obtaining
tax information with respect to civil tax
examinations and criminal tax inves-
tigations, which would preclude the
Service from obtaining information lo-
cated in such jurisdiction that is rele-
vant to the analysis or examination of
the tax issues involved in the ruling
request.
(b)The provisions of subsection (a)
above shall not apply if the taxpayer or
affected related party (i) consents to the
disclosure of all relevant information
requested by the Service in processing
the ruling request or in the course of an
examination in order to verify the
accuracy of the representations made
and to otherwise analyze or examine
the tax issues involved in the ruling
request, and (ii) waives all claims to
protection of bank or commercial se-
crecy laws in the foreign jurisdiction
with respect to the information re-
quested by the Service. In the event the
taxpayer’s or related party’s consent to
disclose relevant information or to
waive protection of bank or commer-
cial secrecy is determined by the
Service to be ineffective or of no force
and effect, then the Service may
retroactively rescind any ruling ren-
dered in reliance on such consent.
SECTION 5. AREAS UNDER
EXTENSIVE STUDY IN WHICH
RULINGS OR DETERMINATION
LETTERS WILL NOT BE ISSUED UNTIL
THE SERVICE RESOLVES THE ISSUE
THROUGH PUBLICATION OF A
REVENUE RULING, REVENUE
PROCEDURE, REGULATIONS OR
OTHERWISE
.01 Section 61.—Gross Income
Defined.—Whether amounts voluntarily
deferred by a taxpayer under a

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deferred-compensation plan maintained
by an organization described in §501
(other than a plan maintained by an
eligible employer pursuant to the provi-
sions of §457) are currently includible
in the taxpayer’s gross income.
.02Sections 61 and 162.—Gross
Income Defined; Trade or Business
Expenses.—The tax consequences with
respect to a salary reduction arrange-
ment under which an employee re-
ceives and returns salary amounts to
the employer. (Also §§3121, 3306, and
3401.)
.03Section 79.—Group-Term Life
Insurance Purchased for Employees.—
Whether life insurance provided for
employees under a ‘‘retired lives re-
serve’’ plan will be considered group-
term insurance. (Also §§61, 72, 83,
101, 162, 264, and 641.)
.04Sections 83 and 451.—Property
Transferred in Connection with Per-
formance of Services; General Rule for
Taxable Year of Inclusion.—When
compensation is realized by a person
who, in connection with the perform-
ance of services, is granted a nonstatu-
tory option without a readily ascertain-
able fair market value to purchase
stock at a price that is less than the fair
market value of the stock on the date
the option is granted.
.05Section 104—Compensation for
I n j u r i e s o r S i c k n e s s . — W h e t h e r
amounts received are excludable from
gross income under §104(a)(2) in
situations affected by Commissioner v.
Schleier, 515 U.S.
(1995), 115 S.Ct.
2159.
.06 Section 105.—Amounts Re-
ceived Under Accident and Health
Plans.—Whether a medical reimburse-
ment plan, funded by employer contri-
butions, containing a provision allow-
ing unused amounts to be carried over
and accumulated in an employee’s
account qualifies as an accident and
health plan under §105.
.07Section 107.—Rental value of
parsonages.—Whether amounts dis-
tributed to a retired minister from a
pension or annuity plan should be
excludible from the minister’s gross
income as a parsonage allowance under
§ 107.
.08Section 162.—See section 5.02,
above.
.09Section 162.—Trade or Business
Expenses.—Whether payments paid or
accrued by a corporation to an exempt
organization as described in §501(c)(7)
or §501(c)(20) are deductible under
§ 162.
.10Section 213.—Medical, Dental,
etc., Expenses.—Whether amounts paid
for medical insurance (or other medical
care) extending substantially beyond
the close of the taxable year may be
deducted under §213 in the year of
p a y m e n t , i f t h e c o n d i t i o n s o f
§ 213(d)(7) are not satisfied.
.11 Section 302(b)(4) and (e).—
Redemption from Noncorporate Share-
holder in Partial Liquidation; Partial
Liquidation Defined.—Whether a
deemed surrender of stock as described
in Rev. Rul. 90–13, 1990–1 C.B. 65,
satisfies the requirements for a redemp-
tion, when:
(i)The corporation has outstanding
more than one class of stock and there
are priorities as to dividend or liquidat-
ing distributions or any other dif-
ferences in stock rights, or
(ii)Either under the terms of the
stock or as established contractually,
there are outstanding any rights affect-
ing the corporation’s stock, such as, but
not limited to, warrants, options, con-
vertible securities, shareholder agree-
ments, or rights of first refusal.
.12Section 306(b)(4).—Transactions
N o t i n A v o i d a n c e . — W h e t h e r
§ 306(b)(4) applies to the distribution
and disposition or redemption of ‘‘sec-
tion 306 stock’’ that is subject to
mandatory redemption.
.13Sections 331, 453, and 1239.—
The Tax Effects of Installment Sales of
Property Between Entities with Com-
mon Ownership.—The tax effects of a
transaction in which there is a transfer
of property by a corporation to a
partnership or other noncorporate entity
(or the transfer of stock to such entity
followed by a liquidation of the corpo-
ration) when more than a nominal
amount of the stock of such corpora-
tion and the capital or beneficial
interests in the purchasing entity (that
is, more than 20 percent in value) is
owned by the same persons, and the
consideration to be received by the
selling corporation or the selling share-
holders includes an installment obliga-
tion of the purchasing entity.
.14Section 351.—Transfer to Cor-
poration Controlled by Transferor.—
Whether §351 applies to the transfer
of widely held developed or un-
developed real property or interests
therein; widely held oil and gas proper-
ties or interests therein; or any sim-
ilarly held properties or interests to a
corporation in exchange for shares of
stock of such corporation when (i) the
transfer is the result of solicitation by
promoters, brokers, or investment
houses, or (ii) the transferee corpora-
tion’s stock is issued in a form
designed to render it readily tradable.
.15Section 368.—Definitions Relat-
ing to Corporate Reorganizations.—The
tax consequences under §368 or other
provisions of the Code with respect to
a transaction in which one corporation
owns stock in a second corporation, the
first corporation is not an ‘‘80-percent
distributee’’ of the second corporation
under §337(c), and the two corpora-
tions are combined.
.16Section 451.—See section 5.04,
above.
.17Section 453.—See section 5.13,
above.
.18Section 671.—Trust Income, De-
ductions, and Credits Attributable to
Grantors and Others as Substantial
Owners.—Whether the grantor will be
considered the owner of any portion of
a trust when (i) substantially all of the
trust corpus consists or will consist of
insurance policies on the life of the
grantor or the grantor’s spouse, (ii) the
trustee or any other person has a power
to apply the trust’s income or corpus to
the payment of premiums on policies of
insurance on the life of the grantor or
the grantor’s spouse, (iii) the trustee or
any other person has a power to use the
trust’s assets to make loans to the
grantor’s estate or to purchase assets
from the grantor’s estate, and (iv) there
is a right or power in any person that
would cause the grantor to be treated
as the owner of all or a portion of the
trust under §§673 to 677.
.19Section 721.—Nonrecognition of
Gain or Loss on Contribution.—
Whether §721 applies to the contribu-
tion of widely held developed or
undeveloped real property or interests
therein; widely held oil and gas proper-
ties or interests therein; or any sim-
ilarly held properties or interests to a
partnership in exchange for an interest
in the partnership when (i) the contri-
bution is the result of solicitation by
promoters, brokers, or investment
houses, or (ii) the interest in the
transferee partnership is issued in a
form designed to render it readily
tradable.
.20Section 1239.—See section 5.13,
above.
.21Section 2503.—Taxable Gifts.—
Whether the transfer of property to a
trust will be a gift of a present interest
in property when (i) the trust corpus

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consists or will consist substantially of
insurance policies on the life of the
grantor or the grantor’s spouse, (ii) the
trustee or any other person has a power
to apply the trust’s income or corpus to
the payment of premiums on policies of
insurance on the life of the grantor or
the grantor’s spouse, (iii) the trustee or
any other person has a power to use the
trust’s assets to make loans to the
grantor’s estate or to purchase assets
from the grantor’s estate, (iv) the trust
beneficiaries have the power to with-
draw, on demand, any additional trans-
fers made to the trust, and (v) there is a
right or power in any person that would
cause the grantor to be treated as the
owner of all or a portion of the trust
under §§673 to 677.
.22Section 2514.—Powers of Ap-
pointment.—If the beneficiaries of a
trust permit a power of withdrawal to
lapse, whether §2514(e) will be appli-
cable to each beneficiary in regard to
the power when (i) the trust corpus
consists or will consist substantially of
insurance policies on the life of the
grantor or the grantor’s spouse, (ii) the
trustee or any other person has a power
to apply the trust’s income or corpus to
the payment of premiums on policies of
insurance on the life of the grantor or
the grantor’s spouse, (iii) the trustee or
any other person has a power to use the
trust’s assets to make loans to the
grantor’s estate or to purchase assets
from the grantor’s estate, (iv) the trust
beneficiaries have the power to with-
draw, on demand, any additional trans-
fers made to the trust, and (v) there is a
right or power in any person that would
cause the grantor to be treated as the
owner of all or a portion of the trust
under §§673 to 677.
.23Section 2601.—Tax Imposed.—
Whether a trust that is excepted from
the application of the generation-
skipping transfer tax because it was
irrevocable on September 25, 1985,
will lose its excepted status if the situs
of the trust is changed from the United
States to a situs outside of the United
States.
. 2 4 S e c t i o n s 3 1 2 1 , 3 3 0 6 , a n d
3 4 0 1 . — D e f i n i t i o n s ; E m p l o y m e n t
Taxes.—Who is the employer of an
‘‘employee-owner’’ as defined in
§ 269A(b)(2).
.25 Section 7701.—Definitions.—
The classification of separately tradable
instruments that are issued by a corpo-
ration as a unit, the components of
which collectively contain the attributes
of stock.
SECTION 6. AREAS COVERED BY
AUTOMATIC APPROVAL PROCEDURES
IN WHICH RULINGS WILL NOT
ORDINARILY BE ISSUED
.01Section 442.—Change of Annual
Accounting Period.—All situations
where the Service has provided an
administrative procedure for obtaining
a change in annual accounting period.
See Rev. Procs. 92–13, 1992–1 C.B.
665 (as modified by Rev. Proc. 94–12,
1994–1 C.B. 565, and as modified and
amplified by Rev. Proc. 92–13A, 1992–
1 C.B. 668) (certain corporations that
have not changed their accounting
period within the prior 6 calendar years
or other specified time); 87–32, 1987–2
C.B. 396, as modified by Rev. Proc.
92–85, 1992–2 C.B. 490 (partnership, S
corporation, or personal service corpo-
ration seeking a natural business year
or an ownership taxable year); 68–41,
1968–2 C.B. 943 (as modified by Rev.
Proc. 81–40, 1981–2 C.B. 604) (trusts
held by certain fiduciaries needing a
workload spread); and 66–50, 1966–2
C.B. 1260 (as modified by Rev. Proc.
81–40) (individual seeking a calendar
year).
.02Section 446.—General Rule for
Methods of Accounting.—All situations
where the Service has provided an
administrative procedure for obtaining
a change in method of accounting. See
Notice 95–57, 1995–45 I.R.B. 12 (cash
method banks in the Eighth Circuit
seeking to change to the cash method
of accounting for stated interest on
short-term loans made in the ordinary
course of business; and Rev. Procs. 95–
33, 1995–28 I.R.B. 7 (certain small
resellers, formerly small resellers, or
reseller-producers changing their
method of accounting for costs subject
to §263A); 95–25, 1995–1 C.B. 701
(certain taxpayers on a simplified pro-
duction or simplified resale method of
accounting for fewer than 3 taxable
years electing an historic absorption
ratio under §263A); 95–19, 1995–1
C.B. 664 (certain taxpayers changing
their method of accounting for interest
costs subject to §263A(f)); 94–49,
1994–2 C.B. 705, as modified by Rev.
Proc. 95–33 (certain taxpayers chang-
ing their method of accounting for
costs subject to §263A); 94-30, 1994–
1 C.B. 621 (certain taxpayers changing
their method of accounting for de
minimis original issue discount (OID)
on loans acquired before a specified
cut-off date); 94–29, 1994–1 C.B. 616
(certain taxpayers seeking to use the
principal-reduction method for de min-
imis OID on certain loans originated by
the taxpayer); 94–28, 1994–1 C.B. 614
(certain taxpayers changing their
method of accounting for debt instru-
ments issued on or after a specified
cut-off date in order to comply with
regulations dealing with OID and other
related matters); 93–48, 1993–2 C.B.
580 (certain taxpayers required to
change their method of accounting for
notional principal contracts entered into
after December 12, 1993); 93–13,
1993–1 C.B. 482 (certain domestic
taxpayers required to change their
method of accounting to comply with
§ 267(a)(3) for deducting amounts
owed to related foreign persons); 92–
98, 1992–2 C.B. 512 (certain accrual
method taxpayers selling multi-year
service warranty contracts seeking to
elect the service warranty income
method); 92–75, 1992–2 C.B. 448
(certain taxpayers, other than those
required to use inventories, seeking to
change to an accrual method); 92–74,
1992–2 C.B. 442 (certain taxpayers,
required to use inventories, seeking to
change to an accrual method); 92–67,
1992–2 C.B. 429 (certain taxpayers
with one or more market discount
bonds seeking to make a constant
interest rate election or seeking to
make or revoke an election under
§ 1278(b)); 92–29, 1992–1 C.B. 748
(certain taxpayers seeking to use an
alternative method under §461(h) for
the inclusion of common improvement
costs in basis) this no-rule provision,
however, does not apply to those
situations where Rev. Proc. 92–29
requires the taxpayer to file a ruling
request; 91–51, 1991–2 C.B. 779 (cer-
tain taxpayers that sell mortgages and
retain rights to service the mortgages);
91–49, 1991–2 C.B. 777 (holders of
certain mortgages that are stripped
bonds); 91–31, 1991–1 C.B. 566, 568,
569 (certain utilities holding customer
deposits); 90–63, 1990–2 C.B. 664
(certain taxpayers changing their ac-
counting treatment of package design
costs); 90–37, 1990–2 C.B. 361 (certain
taxpayers with interest income from
short-term loans); 89–46, 1989–2 C.B.
597 (cash basis taxpayers with certain
United States savings bonds); 88–15,
1988–1 C.B. 683 (certain taxpayers
seeking to discontinue LIFO inven-
tory); 85–8, 1985–1 C.B. 495 (certain
taxpayers seeking to change from spe-
cific charge-off method to reserve
method for bad debts); 84–76, 1984–2

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C.B. 751 (taxpayers seeking to treat
prepaid subscription income under the
provisions of §455); 84–30, 1984–1
C.B. 482 (taxpayers who used the Rule
of 78’s for interest on consumer loans);
84–29, 1984–1 C.B. 480 (individual
borrowers who reported interest deduc-
tions in accordance with the Rule of
78’s); and 74–11, 1974–1 C.B. 420
(taxpayers seeking to change their
method of depreciation accounting).
.03Section 461.—General Rule for
Taxable Year of Deduction.—All situa-
tions where the Service has provided
an administrative procedure for making
or revoking an election under §461.
See Rev. Procs. 92–29, 1992–1 C.B.
748 (dealing with the use of an
alternative method for including in
basis the estimated cost of certain
common improvements in a real estate
development); and 92–28, 1992–1 C.B.
745, as amplified by Rev. Proc. 94–32,
1994–1 C.B. 627 (dealing with ratable
accrual of real property taxes).
.04 Section 1362.—Election; Re-
vocation; Termination.—All situations
in which an S corporation qualifies for
automatic inadvertent termination relief
under Rev. Proc. 94–23, 1994–1 C.B.
609.
. 0 5 S e c t i o n s 1 5 0 2 , 1 5 0 4 , a n d
1552.—Regulations; Definitions; Earn-
ings and Profits.—All situations where
the Service has provided an administra-
tive procedure for obtaining waivers or
consents on consolidated return issues.
See Rev. Procs. 90–53, 1990–2 C.B.
636 (certain corporations seeking rec-
onsolidation within the 5-year period
specified in §1504(a)(3)(A)); 90–39,
1990–2 C.B. 365 (certain affiliated
groups of corporations seeking, for
earnings and profits determinations, to
make an election or a change in their
method of allocating the group’s con-
solidated federal income tax liability);
and 89–56, 1989–2 C.B. 643 (certain
affiliated groups of corporations seek-
ing to file a consolidated return where
member(s) of the group use a 52–53
week taxable year).
SECTION 7. EFFECT ON OTHER
REVENUE PROCEDURES
Rev. Procs. 95–3 and 95–50 are
superseded.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Michael Danbury of the
Office of Assistant Chief Counsel
(Corporate). For further information
about this revenue procedure, please
contact Mr. Danbury at (202) 622-7550
(not a toll-free call).

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26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 96–4
TABLE OF CONTENTS
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
p. 97
SECTION 2. WHAT CHANGES
HAVE BEEN MADE TO REV.
PROC. 95–4?
p. 97
SECTION 3. IN WHAT FORM IS
GUIDANCE PROVIDED BY THE
ASSISTANT COMMISSIONER
(EMPLOYEE PLANS AND
EXEMPT ORGANIZATIONS)?
p. 98.01In general
.02Letter ruling
.03Closing agreement
.04Determination letter
.05Opinion letter
.06Notification letter
.07Information letter
.08Revenue ruling
.09Oral guidance
(1)No oral rulings, and no written rulings in response to oral requests
(2)Discussion possible on substantive issues
.10Nonbank trustee requests
SECTION 4. ON WHAT ISSUES
MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER
THIS PROCEDURE?
p. 100
SECTION 5. ON WHAT ISSUES
MUST WRITTEN GUIDANCE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
p. 101.01Determination letters
.02Master and prototype plans
.03Regional prototype plans
.04Closing agreement program for defined contribution plans that
purchased GICs or GACs
.05Voluntary Compliance Resolution Program
.06Chief Counsel
.07Alcohol, tobacco, and firearms taxes
SECTION 6. UNDER WHAT
CIRCUMSTANCES DOES THE
NATIONAL OFFICE ISSUE
LETTER RULINGS?
p. 101.01In exempt organizations matters
.02In employee plans matters
.03In qualification matters
.04Request for extension of time for making an election or for other relief
under §301.9100–1 of the Procedure and Administration Regulations
.05Issuance of a letter ruling before the adoption of regulations
.06Issues in prior return
.07Generally not to business associations or groups
.08Generally not to foreign governments
SECTION 7. UNDER WHAT
CIRCUMSTANCES DO KEY
DISTRICT DIRECTORS ISSUE
DETERMINATION LETTERS?
p. 104.01Circumstances under which letters are issued by the key district director
.02In general
.03In employee plans matters
.04In exempt organizations matters

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.05Circumstances under which letters are not issued by the key district
director
.06Requests involving returns already filed
.07Attach a copy of determination letter to taxpayer’s return
.08Review of determination letters
SECTION 8. UNDER WHAT
CIRCUMSTANCES DOES THE
SERVICE HAVE DISCRETION TO
ISSUE LETTER RULINGS AND
DETERMINATION LETTERS?
p. 105.01Ordinarily not in certain areas because of factual nature of the problem
.02Not on alternative plans or hypothetical situations
.03Ordinarily not on part of an integrated transaction
.04Law requires letter ruling
.05Issues under consideration by PBGC or DOL
.06Cafeteria plans
.07Determination letters
.08Domicile in a foreign jurisdiction
SECTION 9. WHAT ARE THE
GENERAL INSTRUCTIONS FOR
REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS?
p. 106.01In general
.02Certain information required in all requests
(1)Complete statement of facts and other information
(2)Copies of all contracts, wills, deeds, agreements, instruments, plan
documents, and other documents
(3)Analysis of material facts
(4)Statement regarding whether same issue is in an earlier return
(5)Statement regarding whether same or similar issue was previously
ruled on or requested
(6)Statement of supporting authorities
(7)Statement of contrary authorities
(8)Statement identifying pending legislation
(9)Statement identifying information to be deleted from copy of letter
ruling or determination letter for public inspection
(10)Signature by taxpayer or authorized representative
(11)Authorized representatives
(12)Power of attorney and declaration of representative
(13)Penalties of perjury statement
(14)Applicable user fee
(15)Number of copies of request to be submitted
(16)Sample format for a letter ruling request
(17)Checklist for letter ruling requests
.03Additional information required in certain circumstances
(1)To request separate letter rulings for multiple issues in a single
situation
(2)To designate recipient of original or copy of letter ruling or
determination letter
(3)To request expeditious handling
(4)To receive a letter ruling or submit a request for a letter ruling by
facsimile transmission
(5)To request a conference
.04Address to send the request
(1)Requests for letter rulings
(2)Requests for information letters
(3)Requests for determination letters

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.05Pending letter ruling requests
.06When to attach letter ruling to return
.07How to check on status of request
.08Request may be withdrawn or the national office may decline to issue
letter ruling
.09Compliance with Treasury Department Circular No. 230
SECTION 10. WHAT SPECIFIC,
ADDITIONAL PROCEDURES
APPLY TO CERTAIN REQUESTS?
p. 114.01In general
.02Exempt Organizations
.03Employee Plans
SECTION 11. HOW DOES THE
NATIONAL OFFICE HANDLE
LETTER RULING REQUESTS?
p. 115.01In general
.02Is not bound by informal opinion expressed
.03Tells taxpayer if request lacks essential information during initial
contact
.04Requires prompt submission of additional information requested after
initial contact
.05Schedules a conference if requested by taxpayer
.06Permits taxpayer one conference of right
.07Disallows verbatim recording of conferences
.08Makes tentative recommendations on substantive issues
.09May offer additional conferences
.10Requires written confirmation of information presented at conference
.11May schedule pre-submission conference
.12May, under limited circumstances, schedule a conference to be held by
telephone
.13May request draft of proposed letter ruling near the completion of the
ruling process
.14Advises the taxpayer of final conclusions and, if the Service will rule
adversely, offers the taxpayer the opportunity to withdraw the letter
ruling request
SECTION 12. WHAT EFFECT
WILL A LETTER RULING HAVE?
p. 118.01May be relied on subject to limitations
.02Will not apply to another taxpayer
.03Will be used by a key district director in examining the taxpayer’s
return
.04May be revoked or modified if found to be in error
.05Not generally revoked or modified retroactively
.06Retroactive effect of revocation or modification applied to a particular
transaction
.07Retroactive effect of revocation or modification applied to a continuing
action or series of actions
.08May be retroactively revoked or modified when transaction is
completed without reliance on the letter ruling
.09Taxpayer may request that retroactivity be limited
(1)Request for relief under §7805(b) must be made in required
format
(2)Taxpayer may request a conference on application of § 7805(b)
SECTION 13. WHAT EFFECT
WILL A DETERMINATION
LETTER HAVE?
p. 120.01Has same effect as a letter ruling
.02Taxpayer may request that retroactive effect of revocation or
modification be limited
(1)Request for relief under § 7805(b) must be made in required
format
(2)Taxpayer may request a conference on application of § 7805(b)
(3)Taxpayer steps in exhausting administrative remedies

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SECTION 14. UNDER WHAT
CIRCUMSTANCES ARE MATTERS
REFERRED BETWEEN A KEY
DISTRICT OFFICE AND THE
NATIONAL OFFICE?
p. 121.01Requests for determination letters
.02No-rule areas
.03Requests for letter rulings
SECTION 15. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
p. 122
SECTION 16. EFFECTIVE DATEp. 122
DRAFTING INFORMATIONp. 122
INDEXp. 123
APPENDIX A—SAMPLE FORMAT
FOR A LETTER RULING REQUEST
p. 124
APPENDIX B—CHECKLIST FOR A
LETTER RULING REQUEST
p. 126
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
This revenue procedure explains how the Internal Revenue Service gives guidance
to taxpayers on issues under the jurisdiction of the Assistant Commissioner (Employee
Plans and Exempt Organizations). It explains the kinds of guidance and the manner in
which guidance is requested by taxpayers and provided by the Service. A sample
format of a request for a letter ruling is provided in Appendix A.
SECTION 2. WHAT CHANGES
HAVE BEEN MADE TO REV.
PROC. 95–4?
.01Section 3.07 is amended to require that taxpayers provide a daytime telephone
number in their request for an information letter.
.02Section 5.04 is revised to state that Rev. Proc. 95–52, 1995–51 I.R.B. 14,
restates and extends the closing agreement program for defined contribution plans that
purchased guaranteed investment contracts (GICs) or group annuity contracts (GACs)
from troubled life insurance companies for an indefinite period. Rev. Proc. 95–52
modifies and supersedes the procedures set forth in Rev. Proc. 92–16, 1992–1 C.B.
673 (as modified by Rev. Proc. 94–19, 1994–1 C.B. 605).
.03Section 6.01 is amended to add subsection (6) which provides a more detailed
listing of the areas under the jurisdiction of Exempt Organizations.
.04Section 6.02(1) is revised to add §§419 and 419A of the Code to areas in
which the national office issues letter rulings.
.05Section 6.02(2) is revised to clarify that Rev. Proc. 91–41 applies only to a
waiver of the minimum funding standard, and changes in funding methods and
actuarial assumptions under §412(c)(5) of the Code are added. Reference to changes
in the plan year under §412 has been deleted from this section since that subject is
covered in section 6.02(4).
.06Section 6.02(3) is added to state that a letter ruling can be requested for a
determination that a plan amendment is reasonable and provides for only de minimis
increases in plan liabilities in accordance with §§401(a)(33) and 412(f)(2)(A) of the
Code.
.07A second paragraph is added to section 7.02 clarifying what a ruling issued by
the national office would cover in situations involving continuing transactions.
.08Section 8.06 has been deleted since the Service now provides some guidance on
§ 404(k) of the Code.
.09Section 9.02(11) is amended to add Enrolled Actuary as an authorized
representative.
.10Sections 9.02(9), (10), (12), and (13) are amended to clarify that a stamped
signature by the taxpayer or the authorized representative is not permitted when
signing a deletions statement, requesting a ruling or determination letter, signing the
power of attorney, or signing a penalties of perjury statement.
.11Section 9.02(13) is amended to provide that a taxpayer who submits additional
factual information on several occasions for a request for a letter ruling or
determination letter may provide one penalties of perjury declaration subsequent to all
submissions that refers to all submissions.

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.12Section 9.02(14) is amended to provide that if two or more taxpayers are
parties to a transaction and each requests a letter ruling, each taxpayer must satisfy the
rules of the revenue procedure and additional user fees may apply.
.13Section 9.02(15) is amended to provide that if more than one issue is presented
in the letter ruling request, the taxpayer is encouraged to submit additional copies of
the request.
.14Section 10.03 is amended to add references to Rev. Proc. 94–42, 1994–1 C.B.
717, Rev. Proc. 81–44, 1981–2 C.B. 618, Rev. Proc. 79–62, 1979–2 C.B. 576, Rev.
Proc. 79–61, 1979–2 C.B. 575, and Rev. Proc. 78–37, 1978–2 C.B. 540, which
provide guidance on actuarial issues.
.15Section 11.04(3) has been amended to add reference to an extension of the 30-
day period to submit information after an initial contact under section 11.03.
.16Section 11.13 is amended to clarify the format of the wordprocessing disk for
taxpayers submitting a draft of their letter ruling to the national office.
.17A new section 11.14 is added stating that, generally before a letter ruling is
issued, the branch representative will advise the taxpayer of the Service’s final
conclusions and, if the Service will rule adversely, offers the taxpayer the opportunity
to withdraw the letter ruling request.
.18The first line of the paragraph following section 12.03(4) has been amended to
add a clause advising taxpayers of a change in procedures.
.19Rev. Proc. 96–6, [insert #], this Bulletin, supersedes Rev. Proc. 93–39, 1993–2
C.B. 513 (with the exception of section 12 relating to modifications to Rev. Proc. 93–
12, 1993–1 C.B. 479, and section 13 relating to the extended reliance period) where
Rev. Proc. 93–39 is cited in the following sections of this revenue procedure: 3.04;
3.05; 3.06; 5.01; 5.02; 5.03; 6.03; 7.03; 7.08; and 10.03(8). Rev. Proc. 93–9 is
superseded by Rev. Proc. 93–39 with the exception of section 4 relating to master and
prototype and regional prototype plans.
SECTION 3. IN WHAT FORM IS
GUIDANCE PROVIDED BY THE
ASSISTANT COMMISSIONER
(EMPLOYEE PLANS AND EXEMPT
ORGANIZATIONS)?
In general.01The Service provides guidance in the form of letter rulings, closing agreements,
determination letters, opinion letters, notification letters, information letters, revenue
rulings, and oral advice.
Letter ruling.02A ‘‘letter ruling’’ is a written statement issued to a taxpayer by the Service’s
national office that interprets and applies the tax laws or any nontax laws applicable
to employee benefit plans and exempt organizations to the taxpayer’s specific set of
facts. Once issued, a letter ruling may be revoked or modified for any number of
reasons, as explained in section 12 of this revenue procedure, unless it is accompanied
by a ‘‘closing agreement.’’
Closing agreement.03A 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 of the
Code and is final unless fraud, malfeasance, or misrepresentation of a material fact
can be shown.
A closing agreement prepared in an office under the responsibility of the Assistant
Commissioner (Employee Plans and Exempt Organizations) may be based on a ruling
that has been signed by the Commissioner or the Commissioner’s delegate that says
that a closing agreement will be entered into on the basis of the ruling letter.
A closing agreement may be entered into when it is advantageous to have the
matter permanently and conclusively closed, or when a taxpayer can show that there
are good reasons for an agreement and that making the agreement will not prejudice
the interests of the Government. In appropriate cases, taxpayers may be asked to enter
into a closing agreement as a condition to the issuance of a letter ruling.
If, in a single case, a closing agreement is requested for each person in a class of
taxpayers, separate agreements are entered into only if the class consists of 25 or
fewer taxpayers. However, if the issue and holding are identical for the class and there

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are more than 25 taxpayers in the class, a ‘‘mass closing agreement’’ will be entered
into with the taxpayer who is authorized by the others to represent the class.
In appropriate cases, a closing agreement may be made with sponsors of national
office master and prototype plans and sponsors of regional prototype plans.
Rev. Proc. 94–16, 1994–1 C.B. 576, establishes a voluntary closing agreement
program for employee plans matters. The revenue procedure contains a formula for
determining monetary sanctions and limits the sanction for employers who voluntarily
enter the program.
Key district directors have authority to enter into a closing agreement on employee
plans matters, notwithstanding the delegation of authority to the Commissioner’s
delegate.
Determination letter.04A ‘‘determination letter’’ is a written statement issued by a key district director
that applies the principles and precedents previously announced by the national office
to a specific set of facts. It is issued only when a determination can be made based on
clearly established rules in the statute, a tax treaty, or the regulations, or based on a
conclusion in a revenue ruling, opinion, or court decision published in the Internal
Revenue Bulletin that specifically answers the questions presented.
District directors of key district offices issue determination letters involving §§401,
403(a), 409, and 4975(e)(7) of the Code as provided in Rev. Proc. 96–6, page [insert
#], this Bulletin, Rev. Proc. 93–10, 1993–1 C.B. 476, Rev. Proc. 93–12, 1993–1 C.B.
479, and Rev. Proc. 93–39, 1993–2 C.B. 513 (as superseded in part by Rev. Proc. 96–
6; see section 2.19 of this revenue procedure).
Opinion letter.05An ‘‘opinion letter’’ is a written statement issued by the national office to a
sponsoring organization as to the acceptability (for purposes of §§401 and 501(a) of
the Code) of the form of a master or prototype plan and any related trust or custodial
account under §§401, 403(a), and 501(a) of the Code, or as to the conformance of a
prototype trust, custodial account, or individual annuity with the requirements of
§ 408(a), (b), or (k), as applicable. See Rev. Proc. 89–9, 1989–1 C.B. 780, as
modified by Rev. Proc. 90–21, 1990–1 C.B. 499, Rev. Proc. 92–41, 1992–1 C.B. 870,
Rev. Proc. 93–12, Rev. Proc. 93–39 (as superseded in part by Rev. Proc. 96–6; see
section 2.19 of this revenue procedure), and supplemented by Rev. Proc. 93–10. See
also Rev. Proc. 91–44, 1991–2 C.B. 733, and Rev. Proc. 92–38, 1992–1 C.B. 859.
Notification letter.06A ‘‘notification letter’’ is a written statement issued by the national office or a
key district office, upon request, as to the acceptability (for purposes of §§401 and
501(a) of the Code) of the form of a regional prototype plan and any related trust or
custodial account. See Rev. Proc. 89–13, 1989–1 C.B. 801, as modified by Rev. Proc.
90–21, Rev. Proc. 92–41, Rev. Proc. 93–12, Rev. Proc. 93–39 (as superseded in part
by Rev. Proc. 96–6; see section 2.19 of this revenue procedure), and supplemented by
Rev. Proc. 93–10.
Information letter.07An ‘‘information letter’’ is a statement issued either by the national office or by
a key district director. It 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. To the
extent resources permit, 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 thinks general information will
help the taxpayer. The taxpayer should provide a daytime telephone number with the
taxpayer’s request for an information letter. An information letter is advisory only and
has no binding effect on the Service.
Revenue ruling.08A ‘‘revenue ruling’’ is an interpretation by the Service that has been published
in the Internal Revenue Bulletin. It is the conclusion of the Service on how the law is
applied to a specific set of facts. Revenue rulings are issued only by the national
office and are published for the information and guidance of taxpayers, Service
personnel, and other interested parties.
Because each revenue ruling represents the conclusion of the Service regarding the
application of law to the entire statement of facts involved, taxpayers, Service
personnel, and other concerned parties are cautioned against reaching the same
conclusion in other cases unless the facts and circumstances are substantially the
same. They should consider the effect of subsequent legislation, regulations, court
decisions, revenue rulings, notices, and announcements. See Rev. Proc. 89–14, 1989–1

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C.B. 814, which states the objectives of and standards for the publication of revenue
rulings and revenue procedures in the Internal Revenue Bulletin.
Oral guidance.09
(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.
However, Service employees ordinarily will discuss with taxpayers or their
representatives inquiries regarding whether the Service will rule on particular issues
and questions relating to procedural matters about submitting requests for letter
rulings, determination letters, and requests for recognition of exempt status for a
particular organization.
(2)Discussion possible on substantive issues.
At the discretion of the Service, and as time permits, substantive issues may also be
discussed. However, such a discussion will not be binding on the Service, and cannot
be relied on as a basis for obtaining retroactive relief under the provisions of
§ 7805(b).
Substantive tax issues involving the taxpayer that are under examination, in appeals,
or in litigation will not be discussed by Service employees not directly involved in the
examination, appeal, or litigation of the issues unless the discussion is coordinated
with those Service employees who are directly involved in the examination, appeal, or
litigation of the issues. The taxpayer or the taxpayer’s representative ordinarily will be
asked whether the oral request for guidance or information relates to a matter pending
before another office of the Service.
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 key district office or service center when preparing a return or report. Oral
guidance is advisory only, and the Service is not bound to recognize it, for example,
in the examination of the taxpayer’s return.
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 confirmation of the
substance of the letter.
Nonbank trustee requests.10In order to receive approval to act as a nonbank custodian of plans qualified
under §401(a) of the Code or accounts described in §403(b)(7) of the Code, and as a
nonbank trustee or nonbank custodian for individual retirement arrangements (IRAs)
established under §408(a), (b), or (h), a written application must be filed that
demonstrates how the applicant complies with the requirements of §1.401–12(n)(3)
through (6) of the Income Tax Regulations.
The Service must have clear and convincing proof in its files that the requirements
of the regulations are met. If there is a requirement that the applicant feels is not
applicable, the application must provide clear and convincing proof that such
requirement is not germane to the manner in which the applicant will administer any
trust. See §1.401–12(n)(7) of the regulations.
The completed application should be sent to:
Internal Revenue Service
Assistant Commissioner (Employee Plans and Exempt Organizations)
Attention: CP:E:EP:T
P.O. Box 14073, Ben Franklin Station
Washington, DC 20044
Section 6.01(4) of Revenue Procedure 96–8, page 190, this Bulletin, imposes a
user’s fee for anyone applying for approval to become a nonbank trustee or custodian.
SECTION 4. ON WHAT ISSUES
MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER
THIS PROCEDURE?
Taxpayers may request letter rulings, information letters and closing agreements on
issues within the jurisdiction of the Assistant Commissioner (Employee Plans and
Exempt Organizations) under this revenue procedure. The national office issues letter
rulings to answer written inquiries of individuals and organizations about their status

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for tax purposes and the tax effects of their acts or transactions when appropriate in
the interest of sound tax administration.
Taxpayers also may request determination letters within the jurisdiction of the
appropriate key district director that relate to Code sections under the jurisdiction of
the Assistant Commissioner (Employee Plans and Exempt Organizations). See Rev.
Proc. 96–6, this Bulletin.
SECTION 5. ON WHAT ISSUES
MUST WRITTEN GUIDANCE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
Determination letters.01The procedures for obtaining determination letters involving §§401, 403(a),
409, and 4975(e)(7) of the Code, and the status for exemption of any related trusts or
custodial accounts under §501(a) are contained in Rev. Proc. 96–6, this Bulletin, Rev.
Proc. 93–10, Rev. Proc. 93–12, and Rev. Proc. 93–39 (as superseded in part by Rev.
Proc. 96–6; see section 2.19 of this revenue procedure).
Master and prototype plans.02The procedures for obtaining opinion letters for master and prototype plans and
any related trusts or custodial accounts under §§401(a), 403(a) and 501(a) are
contained in Rev. Proc. 89–9, as modified by Rev. Proc. 90–21, Rev. Proc. 92–41,
Rev. Proc. 93–12, Rev. Proc. 93–39 (as superseded in part by Rev. Proc. 96–6; see
section 2.19 of this revenue procedure), and supplemented by Rev. Proc. 93–10. The
procedures for obtaining opinion letters for prototype trusts, custodial accounts or
annuities under §408(a) or (b) are contained in Rev. Proc. 87–50, as modified by
Rev. Proc. 92–38. The procedures for obtaining opinion letters for prototype trusts
under §408(k) are contained in Rev. Proc. 87–50, as modified by Rev. Proc. 91–44.
Regional prototype plans.03The procedures for obtaining notification letters for regional prototype plans
under §401(a) and any related trust or custodial account under §501, are contained in
Rev. Proc. 89–13, as modified by Rev. Proc. 90–21, Rev. Proc. 92–41, Rev. Proc. 93–
12, Rev. Proc. 93–39 (as superseded in part by Rev. Proc. 96–6; see section 2.19 of
this revenue procedure), and supplemented by Rev. Proc. 93–10.
Closing agreement program for
defined contribution plans that
purchased GICs or GACs
.04Rev. Proc. 95–52, 1995–51 I.R.B. 14, restates and extends the closing
agreement program for defined contribution plans that purchased guaranteed
investment contracts (GICs) or group annuity contracts (GACs) from troubled life
insurance companies for an indefinite period. Rev. Proc. 95–52 modifies and
supersedes the procedures set forth in Rev. Proc. 92–16, 1992–1 C.B. 673 (as
modified by Rev. Proc. 94–19, 1994–1 C.B. 605).
Voluntary Compliance Resolution
Program
.05The procedures for obtaining corrections of operational qualification plan
defects under the Voluntary Compliance Resolution (VCR) Program are contained in
Rev. Proc. 94–62, 1994–2 C.B. 778.
Chief Counsel.06The procedures for obtaining rulings, closing agreements, and information
letters on issues within the jurisdiction of the Chief Counsel are contained in Rev.
Proc. 96–1, this Bulletin, including tax issues involving interpreting or applying the
federal tax laws and income tax treaties relating to international transactions.
Alcohol, tobacco, and firearms
taxes
.07The procedures for obtaining letter rulings, etc., that apply to federal alcohol,
tobacco, and firearms taxes under subtitle E of the Internal Revenue Code are under
the jurisdiction of the Bureau of Alcohol, Tobacco and Firearms. (See 26 C.F.R.
§ 601.328 (1995)).
SECTION 6. UNDER WHAT
CIRCUMSTANCES DOES THE
NATIONAL OFFICE ISSUE LETTER
RULINGS?
In exempt organizations matters.01In exempt organizations matters, the national office issues letter rulings on
proposed transactions and on completed transactions if the request is submitted before
the return is filed for the year in which the transaction that is the subject of the
request was completed. The national office issues letter rulings involving:
(1)Organizations exempt from tax under §501, including private foundations;
(2)Organizations described in §170(b)(1)(A) (except clause (v));

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(3)Political organizations described in §527;
(4)Trusts described in §4947(a);
(5)Welfare benefit plans described in §4976; and
(6)Other matters including issues under §§501 through 514, 4911, 4912, 4940
through 4948, 4955, 6033, 6104, 6113, and 6115.
In employee plans matters.02In employee plans matters, the national office issues letter rulings on proposed
transactions and on completed transactions either before or after the return is filed.
The national office issues letter rulings involving:
(1) §§72, 101(d), 219, 381(c)(11), 402, 403(b), 404, 412, 414(d), 414(e), 419,
419A, 511 through 514, 4971, 4972, 4973, 4974, 4978, 4979, 4980, and 4980A;
(2)Waiver of the minimum funding standard (See Rev. Proc. 94–41, 1994–1 C.B.
711), and changes in funding methods and actuarial assumptions under §412(c)(5);
(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(f)(2)(A) of the
Code (See Rev. Proc. 79–62, 1979–2 C.B. 576);
(4)A change in the plan year of an employee retirement plan and the trust year of
a tax-exempt employees’ trust (See Rev. Proc. 87–27, 1987–1 C.B. 769);
(5)The tax consequences of prohibited transactions under §§503 and 4975;
(6)Whether individual retirement accounts established by employers or associations
of employees meet the requirements of §408(c) (See Rev. Proc. 87–50, as modified
by Rev. Proc. 91–44 and Rev. Proc. 92–38);
(7)With respect to employee stock ownership plans and tax credit employee stock
ownership plans, §§409(l), 409(m), and 4975(d)(3). Other subsections of §§409 and
4975(e)(7) involve qualification issues within the jurisdiction of the key district
offices.
(8)Where the Assistant Commissioner (Employee Plans and Exempt Organizations)
has authority to grant extensions of certain periods of time within which the taxpayer
must perform certain transactions (for example, the 90-day period for reinvesting in
employer securities under §1.46–8(e)(10) of the regulations), the taxpayer’s request
for an extension of such time period must be postmarked (or received, if hand
delivered to the national office) no later than the expiration of the original time
period. Thus, for example, a request for an extension of the 90-day period under
§ 1.46–8(e)(10) must be made before the expiration of this period. However, see
section 6.04 with respect to elections under §301.9100–1 of the Procedure and
Administration Regulations.
In qualifications matters.03The national office ordinarily will not issue letter rulings on matters involving a
plan’s qualified status under §§401 through 420 and §4975(e)(7). These matters are
generally handled by the key district offices’ determination letter program as provided
in Rev. Proc. 96–6, this Bulletin, Rev. Proc. 93–10, Rev. Proc. 93–12, and Rev. Proc.
93–39 (as superseded in part by Rev. Proc. 96–6; see section 2.19 of this revenue
procedure). Although the national office will not ordinarily issue rulings on matters
involving plan qualification, rulings may be issued where, (1) the taxpayer has
demonstrated to the Service’s satisfaction that the qualification issue involved is
unique and requires immediate guidance, (2) as a practical matter, it is not likely that
such issue will be addressed through the determination letter process, and (3) the
Service determines that it is in the interest of good tax administration to provide
guidance to the taxpayer with respect to such qualification issue.
Request for an extension of time
for making an election or for
other relief under §301.9100–1
of the Procedure and
Administration Regulations
.04The national office will consider a request for an extension of time for making
an election or other application for relief under §301.9100–1 of the Procedure and
Administration Regulations even if submitted after the return covering the issue
presented in the §301.9100–1 request has been filed and even if submitted after an
examination of the return has begun or after the issues in the return are being
considered by an appeals office. In such a case, the national office will notify the field
office that has examination jurisdiction over the taxpayer’s return.
Except for those requests pertaining to applications for recognition of exemption,
§ 301.9100–1 requests, even those submitted after the examination of the taxpayer’s

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return has begun, are letter ruling requests and therefore should be submitted pursuant
to this revenue procedure, and require payment of the applicable user fee, referenced
in section 9.02(14) of this revenue procedure. In addition, the taxpayer must submit
the information required by Rev. Proc. 92–85, 1992–2 C.B. 490 (as modified by Rev.
Proc. 96–1, this Bulletin, and Rev. Proc. 93–28, 1993–2 C.B. 344).
However, an election made pursuant to section 4 of Rev. Proc. 92–85, pertaining to
an automatic extension of time under §301.9100–1 of the Procedure and
Administration Regulations, is not a letter ruling and does not require payment of any
user fee.
Issuance of a letter ruling before
the adoption of regulations
.05Unless the issue is covered by section 8 of this procedure, a letter ruling may
be issued before the adoption of regulations (either temporary or final) that interpret
the provisions of any act under the following conditions:
Answer is clear or is reasonably
certain
(1)If the letter ruling request presents an issue for which the answer seems clear
by applying the statute to the facts or for which the answer seems reasonably certain
but not entirely free from doubt, a letter ruling will be issued.
Answer is not reasonably certain(2)The Service will consider all letter ruling requests and use its best efforts to
issue a letter ruling even if the answer does not seem reasonably certain where the
issuance of a letter ruling is in the best interest of tax administration.
Issue cannot be readily resolved
before regulations are issued
(3)A letter ruling will not be issued if the letter ruling request presents an issue
that cannot be readily resolved before regulations are issued.
Issues in prior return.06The national office ordinarily does not issue rulings if, at the time the ruling is
requested, the identical issue is involved in the taxpayer’s return for an earlier period,
and that issue—
(1)is being examined by a key district director,
(2)is being considered by an appeals office,
(3)is pending in litigation in a case involving the taxpayer or related taxpayer, or
(4)has been examined by a key district director or considered by an appeals office,
and the statutory period of limitation has not expired for either assessment or filing a
claim for a refund or a closing agreement covering the issue of liability has not been
entered into by a key district director or by an appeals office.
If a return dealing with an issue for a particular year is filed while a request for a
ruling on that issue is pending, the national office will issue the ruling unless it is
notified by the taxpayer that an examination of that issue or the identical issue on an
earlier year’s return has been started by a key district director. See section 9.05.
However, even if an examination has begun, the national office ordinarily will issue
the letter ruling if the key district director agrees, by memorandum, to permit the
ruling to be issued.
Generally not to business
associations or groups
.07The national office does not issue letter rulings to business, trade, or industrial
associations or to similar groups concerning the application of the tax laws to
members of the group. But groups and associations may submit suggestions of generic
issues that would be appropriately addressed in revenue rulings. See Rev. Proc. 89–14,
which states objectives of and standards for the publication of revenue rulings and
revenue procedures in the Internal Revenue Bulletin.
The national office, however, may issue letter rulings to groups or associations on
their own tax status or liability if the request meets the requirements of this revenue
procedure.
Generally not to foreign
governments
.08The national office does not issue letter rulings to foreign governments or their
political subdivisions about the U.S. tax effects of their laws. Also, the national office
does not issue letter rulings on a matter involving the federal tax consequences of any
proposed federal, state, local, municipal, or foreign legislation.
However, the national office 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. In addition, the national office may
provide general information in response to an inquiry.

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SECTION 7. UNDER WHAT
CIRCUMSTANCES DO KEY
DISTRICT DIRECTORS ISSUE
DETERMINATION LETTERS?
Circumstances under which
letters are issued by the key
district director
.01Key district directors issue determination letters only if the question presented
is specifically answered by a statute, tax treaty, or regulation, or by a conclusion
stated in a revenue ruling, opinion, or court decision published in the Internal Revenue
Bulletin.
In general.02In employee plans and exempt organizations matters, key district directors issue
determination letters in response to taxpayers’ written requests on completed
transactions that affect returns over which they have examination jurisdiction.
However, see section 12.08 of this revenue procedure. 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 under examination.
In situations involving continuing transactions, such as whether an ongoing activity
is an unrelated trade or business, the national office would issue a ruling covering
future tax periods and periods for which a return had not yet been filed.
Key district directors do not issue determination letters on the tax consequences of
proposed transactions, except as provided in sections 7.03 and 7.04 below.
In employee plans matters.03In employee plans matters, key district directors issue determination letters on
the qualified status of employee plans under §§401, 403(a), 409 and 4975(e)(7), and
the exempt status of any related trust under §501. See Rev. Proc. 96–6, this Bulletin,
Rev. Proc. 93–10, Rev. Proc. 93–12, and Rev. Proc. 93–39 (as superseded in part by
Rev. Proc. 96–6; see section 2.19 of this revenue procedure).
In exempt organizations matters.04In exempt organizations matters, the key district directors issue determination
letters involving:
(1)Qualification for exempt status of organizations described in §§501 and 521 to
the extent provided in Rev. Proc. 90–27, 1990–1 C.B. 514;
(2)Classification of private foundation status as provided in Rev. Proc. 76–34,
1976–2 C.B. 656;
(3)Recognition of unusual grants to certain organizations under §§170(b)(1)(A)(vi)
and 509(a)(2);
(4)Requests for relief under §301.9100–1 of the Procedure and Administration
Regulations in connection with applications for recognition of exemption; and
(5)Advance approval under §4945 of organizations’ grant making procedures
whose determination letter requests or applications disclose (or who have otherwise
properly disclosed) a grant program or plans to conduct such a program. If questions
arise regarding grant-making procedures that cannot be resolved on the basis of law,
regulations, a clearly applicable revenue ruling, or other published precedent, the key
district director will forward the matter to the national office for technical advice.
Circumstances under which
letters are not issued by the
key district director
.05A key district director will not issue a determination letter in response to any
request if—
(1)it appears that the taxpayer has directed a similar inquiry to the national office;
(2)the same issue involving the same taxpayer or a related taxpayer is pending in a
case in litigation or before an appeals office;
(3)the determination letter is requested by an industry, trade association, or similar
group on behalf of individual taxpayers within the group (other than subordinate
organizations covered by a group exemption letter); or
(4)the request involves an industry-wide problem.
Under no circumstances will a key district 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 key district director has or will have
examination jurisdiction.

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Requests involving returns
already filed
.06A request received by a key district director on a question concerning a return
that is under examination, will be, in general, 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.
Attach a copy of determination
letter to taxpayer’s return
.07A taxpayer who, before filing a return, receives a determination letter about any
transaction that has been consummated and that is relevant to the return being filed
should attach a copy of the determination letter to the return when it is filed.
Review of determination letters.08Determination letters issued under sections 7.02 through 7.04 of this revenue
procedure are not reviewed by the national office before they are issued. If a taxpayer
believes that a determination letter of this type is in error, the taxpayer may ask the
key district director to reconsider the matter or to request technical advice from the
national office as explained in Rev. Proc. 96–5, also in this Bulletin.
(1)In employee plans matters, the procedures for review of determination letters
relating to the qualification of employee plans involving §§401 and 403(a) of the
Code are provided in Rev. Proc. 96–6, Rev. Proc. 93–10, Rev. Proc. 93–12, and Rev.
Proc. 93–39 (as superseded in part by Rev. Proc. 96–6; see section 2.19 of this
revenue procedure).
(2)In exempt organizations matters, the procedures for the review of determination
letters relating to the exemption from federal income tax of certain organizations
under §§501 and 521 of the Code are provided in Rev. Proc. 90–27.
SEC. 8. UNDER WHAT
CIRCUMSTANCES DOES THE
SERVICE HAVE DISCRETION TO
ISSUE LETTER RULINGS AND
DETERMINATION LETTERS?
Ordinarily not in certain areas
because of factual nature of the
problem
.01The Service ordinarily will not issue a letter ruling or determination letter in
certain areas because of the factual nature of the problem involved or because of other
reasons. The Service may decline to issue a letter ruling or a determination letter
when appropriate in the interest of sound tax administration 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 national office or a key
district director may, when it is considered appropriate and in the best interests of the
Service, issue an information letter calling attention to well-established principles of
tax law.
Not on alternative plans or
hypothetical situations
.02A letter ruling or a determination letter will not be issued on alternative plans
of proposed transactions or on hypothetical situations.
Ordinarily not on part of an
integrated transaction
.03The national office ordinarily will not issue a letter ruling on only part of an
integrated transaction.
Law requires ruling letter.04The national office will issue rulings on prospective or future transactions if the
law or regulations require a determination of the effect of a proposed transaction for
tax purposes.
Issues under consideration by
PBGC or DOL
.05A ruling or determination letter relating to an issue that is being considered by
the Pension Benefit Guaranty Corporation (PBGC) or the Department of Labor (DOL),
and involves the same taxpayer, shall be issued at the discretion of the Service.
Cafeteria plans.06The Service does not issue ruling letters or determination letters on whether a
cafeteria plan satisfies the requirements of §125 of the Code. See also Rev. Proc. 96–
3, also in this Bulletin, for areas under the jurisdiction of the Associate Chief Counsel
(Domestic) involving cafeteria plans in which advance rulings or determination letters
will not be issued.
Determination letters.07See section 3.02 of Rev. Proc. 96–6 for employee plans matters on which
determination letters will not be issued.
Domicile in a foreign jurisdiction.08

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(1)The Service is ordinarily unwilling to rule in situations where a taxpayer or a
related party is domiciled or organized in a foreign jurisdiction with which the United
States does not have an effective mechanism for obtaining tax information with
respect to civil tax examinations and criminal investigations, which would preclude
the Service from obtaining information located in such jurisdiction that is relevant to
the analysis or examination of the tax issues involved in the ruling request.
(2)The provisions of subsection 8.08(1) above shall not apply if the taxpayer or
affected related party (a) consents to the disclosure of all relevant information
requested by the Service in processing the ruling request or in the course of an
examination to verify the accuracy of the representations made and to otherwise
analyze or examine the tax issues involved in the ruling request, and (b) waives all
claims to protection of bank or commercial secrecy laws in the foreign jurisdiction
with respect to the information requested by the Service. In the event the taxpayer’s or
related party’s consent to disclose relevant information or to waive protection of bank
or commercial secrecy is determined by the Service to be ineffective or of no force
and effect, then the Service may retroactively rescind any ruling rendered in reliance
on such consent.
SECTION 9. WHAT ARE THE
GENERAL INSTRUCTIONS FOR
REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS?
In general.01This section explains the general instructions for requesting letter rulings and
determination letters on all matters. Requests for letter rulings and determination
letters require the payment of the applicable user fee discussed in section 9.02(14) 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 section 10 of this
revenue procedure followed by a reference (usually to another revenue procedure)
where more information can be obtained.
Certain information required in
all requests
.02
Facts(1)Complete statement of facts and other information. Each request for a letter
ruling or a determination letter must contain a complete statement of all facts relating
to the transaction. These facts include—
(a)names, addresses, telephone numbers, and taxpayer identification numbers of all
interested parties. (The term ‘‘all interested parties’’ does not mean all shareholders of
a widely held corporation requesting a letter ruling relating to a reorganization, or all
employees where a large number may be involved.);
(b)the location of the key district office that has or will have examination
jurisdiction over the return (not the service center where the return is filed);
(c)a complete statement of the business reasons for the transaction; and
(d)a detailed description of the transaction.
The Service will usually not rule on only one step of a larger integrated transaction.
See section 8.03 of this revenue procedure. However, if such a letter ruling is
requested, the facts, circumstances, true copies of relevant documents, etc., relating to
the entire transaction must be submitted.
Documents(2)Copies of all contracts, wills, deeds, agreements, instruments, plan
documents, and other documents. True copies of all contracts, wills, deeds,
agreements, instruments, plan documents, trust documents, proposed disclaimers, and
other documents pertinent to the transaction must be submitted with the request.
Each document, other than the request, should be labelled alphabetically and
attached to the request in alphabetical order. 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.

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Analysis of material facts(3)Analysis of material facts. All material facts in documents must be included
rather than merely incorporated by reference, in the taxpayer’s initial request or in
supplemental letters. These facts must be accompanied by an analysis of their bearing
on the issue or issues, specifying the provisions that apply.
Same issue in an earlier return(4)Statement regarding whether same issue is in an earlier return. The request
must state whether, to the best of the knowledge of both the taxpayer and the
taxpayer’s representatives, the same issue is in an earlier return of the taxpayer (or in
a return for any year of a related taxpayer within the meaning of §267, or of a
member of an affiliated group of which the taxpayer is also a member within the
meaning of §1504).
If the statement is affirmative, it must specify whether the issue—
(a)is being examined by a key district director;
(b)has been examined and if so, whether or not the statutory period of limitations
has expired for either assessing tax or filing a claim for refund or credit of tax;
(c)has been examined and if so, whether or not a closing agreement covering the
issue or liability has been entered into by a key district director;
(d)is being considered by an appeals office in connection with a return from an
earlier period;
(e)has been considered by an appeals office in connection with a return from an
earlier period and if so, whether or not the statutory period of limitations has expired
for either assessing tax or filing a claim for refund or credit of tax;
(f)has been considered by an appeals office in connection with a return from an
earlier period and whether or not a closing agreement covering the issue or liability
has been entered into by an appeals office;
(g)is pending in litigation in a case involving the taxpayer or a related taxpayer; or
(h)in employee plans matters, is being considered by the Pension Benefit Guaranty
Corporation or the Department of Labor.
Same or similar issue previously
submitted
(5)Statement regarding whether same or similar issue was previously ruled on or
requested. The request must also state whether, to the best of the knowledge of both
the taxpayer and the taxpayer’s representatives—
(a)the Service previously ruled on the same or similar issue for the taxpayer (or a
related taxpayer within the meaning of §267, or a member of an affiliated group of
which the taxpayer is also a member within the meaning of §1504) or a predecessor;
or
(b)the taxpayer, a related taxpayer, a predecessor, or any representatives previously
submitted the same or similar issue to the Service but withdrew it before a letter
ruling or determination letter was issued.
If the same or a similar issue was previously submitted, the statement must give the
date the request was submitted, withdrawn, or ruled on, and other details of the
Service’s consideration of the issue.
Statement of authorities
supporting taxpayer’s views
(6)Statement of supporting authorities. If the taxpayer advocates a particular
conclusion, an explanation of the grounds for that conclusion and the relevant
authorities to support it must also be included. Even if not advocating a particular tax
treatment of a proposed transaction, the taxpayer must still 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
(7)Statement of contrary authorities. The taxpayer is also encouraged to inform
the Service about, and discuss the implications of, any authority believed to be
contrary to the position advanced, such as legislation (or pending legislation), tax
treaties, court decisions, regulations, notices, revenue rulings, revenue procedures or
announcements. If the taxpayer determines that there are no contrary authorities, a
statement in the request to this effect would be helpful. If the taxpayer does not

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furnish either contrary authority or a statement that none exists, the Service in
complex cases or those presenting difficult or novel issues may request submission of
contrary authorities or a statement that none exists. Failure to comply with this request
may result in the Service’s refusal to issue a letter ruling or determination letter.
Identifying and discussing contrary authorities will generally enable Service
personnel to understand the issue and relevant authorities more quickly. When Service
personnel receive the request, they will have before them the taxpayer’s thinking on
the effect and applicability of contrary authorities. This information should make
research easier 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
(8)Statement identifying pending legislation. At the time of filing the request, the
taxpayer must identify any pending legislation that may affect the proposed
transaction. In addition, if legislation is introduced after the request is filed but before
a letter ruling or determination letter is issued, the taxpayer must notify the Service.
Deletions statement required by
§ 6110
(9)Statement identifying information to be deleted from copy of letter ruling or
determination letter for public inspection. The text of certain 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 (‘‘deletions
statement’’). If the deletions statement is not submitted with the request, a Service
representative will tell the taxpayer that the request will be closed if the Service does
not receive the deletions statement within 30 calendar days. See section 11.03 of this
revenue procedure.
Format of deletions statement(a)A taxpayer who wants only names, addresses, and identifying numbers to be
deleted should state this in the deletions statement. If the taxpayer wants more
information deleted, the deletion’s 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 deletions statement must indicate the statutory basis under
§ 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or
determination letter is issued, additional deletions statements may be submitted.
Location of deletions statement(b)The deletions statement must not appear in the request, but instead must be
made in a separate document and placed on top of the request for a letter ruling or
determination letter.
Signature(c)The deletions statement must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature is not permitted.
Additional information(d)The taxpayer should follow the same procedures above to propose deletions
from any additional information submitted after the initial request. An additional
deletions statement, however, is not required with each submission of additional
information if the taxpayer’s initial deletions 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.
Taxpayer may protest deletions
not made
(e)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 within
20 calendar days to the Service office indicated on the notice of intention to disclose.
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 deletions
proposed 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.

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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. However, these matters may be taken
up at any conference that is otherwise scheduled regarding the request.
Taxpayer may request delay of
public inspection
(f)After receiving the notice under §6110(f)(1) of intention to disclose, but within
60 calendar days after the date of notice, the taxpayer may send a request for delay of
public inspection under either §6110(g)(3) or (4). The request for delay must be sent
to the Service office indicated on the notice of intention to disclose. A request for
delay under §6110(g)(3) must contain the date on which it is expected that the
underlying transaction will be completed. The request for delay under §6110(g)(4)
must contain a statement from which the Commissioner of Internal Revenue may
determine that there are good reasons for the delay.
Section 6110(k)(1) states 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 application for exemption under §501(a) as an organization described in
§ 501(c) or (d), or any application filed with respect to the qualification of a pension,
profit-sharing or stock bonus plan, or an individual retirement account, whether the
plan or account has more than 25 or less than 26 participants, or any application for
exemption under §501(a) by an organization forming part of such a plan or account;
(ii)Any document issued by the Internal Revenue Service in which the
qualification or exempt status of an organization, plan, or account is granted, denied,
or revoked or the portion of any document in which technical advice with respect
thereto is given to a key district director;
(iii)Any application filed and any document issued by the Internal Revenue
Service with respect to the qualification or status of national office master and
prototype plans and regional prototype plans;
(iv)The portion of any document issued by the Internal Revenue Service with
respect to the qualification or exempt status of an organization, plan, or account, of a
proposed transaction by such organizations, plan, or account; and
(v)Any document issued by the Internal Revenue Service in which is discussed the
status of an organization under §509(a) or §4942(j)(3), other than one issued to a
nonexempt charitable trust described in §4947(a)(1). This includes documents
discussing the termination of private foundation status under §507.
Signature on request(10)Signature by taxpayer or authorized representative. The request for a letter
ruling or determination letter must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature is not permitted.
Authorized representatives(11)Authorized representatives. To sign the request or to appear before the Service
in connection with the request, the representative must be:
Attorney(a)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;
Certified public accountant(b)A certified public accountant who is 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;
Enrolled agent(c)An enrolled agent who is a person, other than an attorney or certified public
accountant, that is currently enrolled to practice before the Service and is not currently
under suspension or disbarment from practice before the Service, including a person
enrolled to practice only for employee plans matters. He or she must file a written
declaration with the Service showing current enrollment and authorization to represent
the taxpayer. Either the enrollment number or the expiration date of the enrollment

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card must be included in the declaration. For the rules on who may practice before the
Service, see Treasury Department Circular No. 230 (31 C.F.R. part 10 (1995));
Enrolled actuary(d)An enrolled actuary who is a person enrolled as an actuary by the Joint Board
for the Enrollment of Actuaries pursuant to 29 U.S.C. 1242 and 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
an enrolled actuary and current authorization to represent the taxpayer. Practice as an
enrolled actuary is limited to representation with respect to issues involving the
following statutory provisions: §§401, 403(a), 404, 405, 412, 413, 414, 4971, 6057,
6058, 6059, 6652(e), 6652(f), 6692, 7805(b), and 29 U.S.C. 1083;
Sponsor of regional prototype
plan
(e)Certain individuals, partnerships or corporations may sponsor regional prototype
plans according to the procedures of Rev. Proc. 89–13. See section 4 of Rev. Proc.
89–13; or
A person with a ‘‘Letter of
Authorization’’
(f)Any other person, including a foreign representative who has received a ‘‘Letter
of Authorization’’ from the Director of Practice 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 Director of Practice, HR:DP, Internal Revenue Service,
1111 Constitution Avenue, N.W., 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.
Employee, general partner, bona
fide officer, administrator,
trustee, etc.
The above requirements do not apply to a regular full-time employee representing
his or her employer, to a general partner representing his or her partnership, to a bona
fide officer representing his or her corporation, association, or organized group, or to a
trustee, receiver, guardian, personal representative, administrator, or executor
representing a trust, receivership, guardianship, or estate. A preparer of a return (other
than a person referred to in paragraph (a), (b), (c), (d), (e), or (f) of this section
9.02(11)) who is not a full-time employee, general partner, a bona fide officer, or an
administrator, trustee, etc., may not represent a taxpayer in connection with a letter
ruling, determination letter or a technical advice request. See section 10.7(c) of
Treasury Department Circular No. 230.
Foreign representativeA foreign representative (other than a person referred to in paragraph (a), (b), (c),
(d), (e) or (f) of this section 9.02(11)) is not authorized to practice before the Service
and, therefore, 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 entity’s own behalf or through a person referred to in paragraph (a), (b), (c), (d),
(e) or (f) of this section 9.02(11).
Power of attorney and
declaration of representative
(12)Power of attorney and declaration of representative. Any authorized
representative, whether or not enrolled to practice, must also comply with the
conference and practice requirements of the Statement of Procedural Rules (26 C.F.R.
§ 601.501–509 (1995)), which provide the rules for representing a taxpayer before the
Service.
It is preferred that Form 2848, Power of Attorney and Declaration of
Representative, be used to provide the representative’s authorization (Part I of Form
2848, Power of Attorney) and the representative’s qualification (Part II of Form 2848,
Declaration of Representative). The name of the person signing Part I of Form 2848
should also be typed or printed on this form. A stamped signature is not permitted.
For additional information regarding the power of attorney form, see section 9.03(2)
of this revenue procedure.
For the requirement regarding compliance with Treasury Department Circular No.
230, see section 9.09 of this revenue procedure.
Penalties of perjury statement(13)Penalties of perjury statement. A request for a letter ruling or determination
letter and any factual information or change in the ruling request submitted at a later
time must be accompanied by the following declaration: ‘‘Under penalties of perjury, I
declare that I have examined this request, including accompanying documents, and
to the best of my knowledge and belief, the facts presented in support of the

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requested letter ruling or determination letter are true, correct, and complete.’’ A
taxpayer who submits additional factual information on several occasions may provide
one declaration subsequent to all submissions that refers to all submissions.
Signature by taxpayerThe declaration must be signed and dated by the taxpayer, not the taxpayer’s
representative. A stamped signature is not permitted. The person who signs for a
corporate taxpayer must be an officer of the corporate taxpayer who has personal
knowledge of the facts, and whose duties are not limited to obtaining a letter ruling or
determination letter from the Service. If the corporate taxpayer is a member of an
affiliated 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 or partnership must be a trustee or general partner
who has personal knowledge of the facts.
Applicable user fee(14)Applicable user fee. Section 10511 of the Revenue Act of 1987, Pub. L. No.
100–203, 101 Stat. 1330–382, 1330–446, enacted December 22, 1987, as amended by
§ 11319 of the Omnibus Budget Reconciliation Act of 1990, 1991–2 C.B. 481, 511,
enacted November 5, 1990, and by §743 of the Uruguay Round Agreements Act,
1995–1 C.B. 230, 239, enacted December 8, 1994, requires taxpayers to pay user fees
for requests for rulings, opinion letters, determination letters, and similar requests.
Rev. Proc. 96–8, page 00, this Bulletin, contains the schedule of fees for each type of
request under the jurisdiction of the Assistant Commissioner (Employee Plans and
Exempt Organizations) and provides guidance for administering the user fee
requirements. If two or more taxpayers are parties to a transaction and each requests a
letter ruling, each taxpayer must satisfy the rules herein and additional user fees may
apply.
Number of copies of request to
be submitted
(15)Number of copies of request to be submitted. Generally a taxpayer needs only
to submit one copy of the request for a letter ruling or determination letter. If,
however, more than one issue is presented in the letter ruling request, the taxpayer is
encouraged to submit additional copies of the request.
Further, two copies of the request for a letter ruling or determination letter are
required if—
(a)the taxpayer is requesting separate letter rulings or determination letters on
different issues as explained later under section 9.03(1) of this revenue procedure;
(b)the taxpayer is requesting deletions other than names, addresses, and identifying
numbers, as explained in section 9.02(9) of this revenue procedure; or
(c)a closing agreement (as defined in section 3.03 of this revenue procedure) is
being requested on the issue presented.
Sample of a letter ruling request(16)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 A. This format is not required to be used
by the taxpayer or the taxpayer’s representative. If the letter ruling request is not
identical or similar to the format in Appendix A, the different format will neither
defer consideration of the letter ruling request nor be cause for returning the request to
the taxpayer or taxpayer’s representative.
Checklist(17)Checklist for letter ruling requests. The Service will be able to respond more
quickly to a taxpayer’s letter ruling request if it is carefully prepared and complete.
The checklist in Appendix B 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 B 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. A photocopy of the checklist in this revenue procedure may be used.
Additional information required in
certain circumstances
.03
Multiple issues(1)To request separate letter rulings for multiple issues in a single situation. If
more than one issue is presented in a request for a letter ruling, the Service generally
will issue a single ruling letter covering all the issues. However, if the taxpayer
requests separate letter rulings on any of the issues (because, for example, one letter

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ruling is needed sooner than another), the Service will usually comply with the request
unless it is not feasible or not in the best interests of the Service to do so. A taxpayer
who wants separate letter rulings on multiple issues should make this clear in the
request and submit two copies of the request.
In issuing each letter ruling, the Service will state that it has issued separate letter
rulings or that requests for other letter rulings are pending.
Power of attorney(2)To designate recipient of original or copy of letter ruling or determination
letter. Unless the power of attorney provides otherwise, the Service will send the
original of the letter ruling or determination letter to the taxpayer and a copy of the
letter ruling or determination letter to the taxpayer’s representative. It is preferred that
Form 2848, Power of Attorney and Declaration of Representative, be used to provide
the representative’s authorization. See section 9.02(12) of this revenue procedure.
Copies of letter ruling or
determination letter sent to
multiple representatives
(a)To have copies sent to multiple representatives. When a taxpayer has more
than one representative, the Service will send the copy of the letter ruling or
determination letter to the first representative named on the most recent power of
attorney. If the taxpayer wants an additional copy of the letter ruling or determination
letter sent to the second representative listed in the power of attorney, the taxpayer
must check the appropriate box on Form 2848. If this form is not used, the taxpayer
must state in the power of attorney that a copy of the letter ruling or determination
letter is to be sent to the second representative listed in the power of attorney. Copies
of the letter ruling or determination letter, however, will be sent to no more than two
representatives.
Original of letter ruling or
determination letter sent to
taxpayer’s representative
(b)To have original sent to taxpayer’s representative. A taxpayer may request that
the original of the letter ruling or determination letter be sent to the taxpayer’s
representative. In this case, a copy of the letter ruling or determination letter will be
sent to the taxpayer.
If the taxpayer wants the original of the letter ruling or determination letter sent to
the taxpayer’s representative, the taxpayer must check the appropriate box on Form
2848. If this form is not used, the taxpayer must state in the power of attorney that the
original of the letter ruling or determination letter is to be sent to the taxpayer’s
representative. When a taxpayer has more than one representative, the Service will
send the original of the letter ruling or determination letter to the first representative
named in the most recent power of attorney.
No copy of letter ruling or
determination letter sent to
taxpayer’s representative
(c)To have no copy sent to taxpayer’s representative. If a taxpayer does not want
a copy of the letter ruling or determination letter sent to any representative, the
taxpayer must check the appropriate box on Form 2848. If this form is not used, the
taxpayer must state in the power of attorney that a copy of the letter ruling or
determination letter is not to be sent to any representative.
Expeditious handling(3)To request expeditious handling. The Service processes requests for letter
rulings and determination letters in order of the date received, and as expeditiously as
possible. A taxpayer who has a compelling need to have a request processed ahead of
the regular order must request expeditious handling. The request must be made in
writing, preferably in a separate letter with, or soon after filing, the request for the
letter ruling or determination letter. The request must explain the need for expeditious
handling.
If the request for expeditious handling is not made in a separate letter, then the
letter in which the letter ruling or determination letter request is made should say, at
the top of the first page: ‘‘Expeditious Handling Is Requested. See page
of this
letter.’’
A request for expeditious handling will not be forwarded to a rulings branch for
action until the check or money order for the user fee in the correct amount is
received.
The Service cannot give assurance that any letter ruling or determination letter will
be processed by the time requested. For example, 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

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transaction will not be a sufficient reason to process a request out of order.
Accordingly, the Service urges taxpayers to submit their requests well in advance of
the contemplated transaction.
Facsimile (fax) transmission(4)To receive a letter ruling or determination letter or submit a request for a
letter ruling by facsimile transmission. Letter rulings and determination letters
ordinarily are not sent by facsimile (fax) transmission. However, if the taxpayer
requests, a copy of a letter ruling or determination letter may be faxed to the taxpayer
or the taxpayer’s authorized representative.
A request to fax a copy of the letter ruling or determination letter to the taxpayer or
the taxpayer’s authorized representative must be made in writing, either as part of the
original letter ruling or determination letter request or prior to the approval of the
letter ruling or determination letter. The request must contain the fax number of the
taxpayer or the taxpayer’s authorized representative to whom the letter ruling is to be
faxed.
In addition, because of the nature of fax transmission, a statement containing a
waiver of any disclosure violations resulting from the fax transmission must
accompany the request. Nevertheless, the national office will take certain precautions
to protect confidential information. For example, the national office will use a cover
sheet that identifies the intended recipient of the fax and the number of pages
transmitted. The cover sheet, if possible, will not identify the specific taxpayer by
name, and it will be the first page covering the letter ruling being faxed.
Original letter ruling requests sent by fax are discouraged because such requests
must be treated in the same manner as requests by letter. For example, the faxed letter
ruling request will not be forwarded to the rulings branch for action until the check
for the user fee is received.
Requesting a conference(5)To request a conference. A taxpayer who wants to have a conference on the
issues involved should indicate this in writing when, or soon after, filing the request.
See also sections 11.05, 11.06, and 12.09(2) of this revenue procedure.
Address to send the request.04
Requests for letter rulings(1)Requests for letter rulings should be sent to the following offices (as
appropriate):
Employee Plans Division
Internal Revenue Service
Assistant Commissioner (EP/EO)
Attention: CP:E:EP:T
P.O. Box 14073, Ben Franklin Station
Washington, D.C. 20044
Exempt Organizations Division
Internal Revenue Service
Assistant Commissioner (EP/EO)
Attention: CP:E:EO:P:2
P.O. Box 120, Ben Franklin Station
Washington, D.C. 20044
Requests may also be hand delivered to Room 6052, 1111 Constitution Avenue,
N.W., Washington, DC between 8:30 a.m. and 4:00 p.m. on work days. After working
hours, they may be hand delivered to the drop box at the 12th Street entrance of the
same building.
Requests for information letters(2)Requests for information letters on either exempt organizations matters or
employee plans matters should be sent to the Employee Plans Technical Branches or
the Exempt Organizations Technical Branches (as appropriate):
Internal Revenue Service
1111 Constitution Avenue, N.W.
Attention: CP:E:EO:P:2, Room 6052
Washington, DC 20224
Requests for determination letters(3)Requests for determination letters should be sent to the IRS key district
director whose office has or will have examination jurisdiction over the taxpayer’s
return. For fees required with determination letter requests, see section 6.08 of Rev.
Proc. 96–8, this Bulletin.

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Pending letter ruling requests.05
Must notify national office if
examination of issue begins,
consideration by PBGC or DOL
starts, or legislation is
introduced
The taxpayer must notify the national office if, after the letter ruling request is filed
but before a letter ruling is issued, the taxpayer knows that—
(1)an examination of the issue or the identical issue on an earlier year’s return has
been started by a key district director;
(2)in employee plans matters, the issue is being considered by the Pension Benefit
Guaranty Corporation or the Department of Labor; or
(3)legislation that may affect the transaction is introduced (see section 9.02(8) of
this revenue procedure).
Must notify national office if
return is filed and must attach
request to return
In addition, if the taxpayer files a return before a letter ruling is received from the
national office concerning the issue, the taxpayer must notify the national office that
the return has been filed. The taxpayer must also attach a copy of the letter ruling
request to the return to alert the key district office and thereby avoid premature
district action on the issue.
When to attach letter ruling to
return
.06A taxpayer who receives a letter ruling before filing a return about any
transaction that is relevant to the return being filed must attach a copy of the letter
ruling to the return when it is filed.
How to check on status of
request
.07The taxpayer or the taxpayer’s authorized representative may obtain information
regarding the status of a request by calling the person whose name and telephone
number are shown on the acknowledgement of receipt of the request.
Request may be withdrawn or
the national office may decline
to issue ruling
.08If a taxpayer withdraws a request for a letter ruling or if the national office
declines to issue a letter ruling, the national office will notify the appropriate key
district director and may give its views on the issues in the request to the appropriate
key district director to consider in any later examination of the return. The 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 the national office declines to issue a letter ruling will not be returned to the
taxpayer (see section 9.02(2) of this revenue procedure). The user fee will not be
returned for a request that is withdrawn. In appropriate cases, the Service may publish
its conclusions in a revenue ruling or revenue procedure.
A request for a ruling will not be suspended in the national office at the request of
a taxpayer.
Compliance with Treasury
Department Circular No. 230
.09The 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 those situations when the national office believes that
the taxpayer’s representative is not in compliance with Circular No. 230, the national
office will bring the matter to the attention of the Director of Practice.
For the requirement regarding compliance with the conference and practice
requirements, see section 9.02(12) of this revenue procedure.
SECTION 10. WHAT SPECIFIC,
ADDITIONAL PROCEDURES APPLY
TO CERTAIN REQUESTS?
In general.01Specific revenue procedures supplement the general instructions for requests
explained in section 9 of this revenue procedure and apply to requests for letter
rulings or determination letters regarding the Code sections and matters listed in this
section.
Exempt Organizations.02If the request is for the qualification of an organization for exemption from
federal income tax under §501 or 521, see Rev. Proc. 72–5, 1972–1 C.B. 709,
regarding religious and apostolic organizations; Rev. Proc. 80–27, 1980–1 C.B. 677,
concerning group exemptions; and Rev. Proc. 90–27 1990–1 C.B. 514, regarding
applications for recognition of exemption.
Employee Plans.03

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(1)For requests to obtain approval for a retroactive amendment described in
§ 412(c)(8) of the Code and §302(c)(8) of the Employee Retirement Income Security
Act of 1974 (ERISA) that reduces accrued benefits, see Rev. Proc. 94–42, 1994–1
C.B. 717.
(2)For requests for a waiver of the minimum funding standard, see Rev. Proc. 94–
41, 1994–1 C.B. 711.
(3)For requests for a waiver of the 100 percent tax imposed under §4971(b) of the
Code on a pension plan that fails to meet the minimum funding standards of §412 of
the Code, see Rev. Proc. 81–44, 1981–2 C.B. 618.
(4)For requests for a determination that a plan amendment is reasonable and
provides for only de minimis increases in plan liabilities in accordance with
§§401(a)(33) and 412(f)(2)(A) of the Code, see Rev. Proc. 79–62, 1979–2 C.B. 576.
(5)For requests to obtain approval for an extension of an amortization period of
any unfunded liability in accordance with §412(e) of the Code, see Rev. Proc. 79–61,
1979–2 C.B. 575.
(6)For requests by administrators or sponsors of a defined benefit plan to obtain
approval for a change in funding method, see Rev. Proc. 78–37, 1978–2 C.B. 540.
(7)For requests for the return to the employer of certain nondeductible
contributions, see Rev. Proc. 90–49, 1990–2 C.B. 620.
(8)For requests for determination letters for plans under §§401, 403(a), 409, and
4975(e)(7) of the Code, and for the exempt status of any related trust under §501, see
Rev. Proc. 96–6, Rev. Proc. 93–10, Rev. Proc. 93–12, and Rev. Proc. 93–39 (as
superseded in part by Rev. Proc. 96–6; see section 2.19 of this revenue procedure).
SECTION 11. HOW DOES THE
NATIONAL OFFICE HANDLE LETTER
RULING REQUESTS?
In general.01The national office will issue letter rulings on the matters and under the
circumstances explained in sections 4 and 6 of this revenue procedure and in the
manner explained in this section.
Is not bound by informal opinion
expressed
.02The Service will not be bound by the informal opinion expressed by the branch
representative or any other authorized Service representative under this procedure, and
such an opinion cannot be relied upon as a basis for obtaining retroactive relief under
the provisions of §7805(b) of the Code.
Tells taxpayer if request lacks
essential information during
initial contact
.03If a request for a letter ruling or determination letter does not comply with all
the provisions of this revenue procedure, the request will be acknowledged and the
Service representative will tell the taxpayer during the initial contact which
requirements have not been met.
Information must be submitted
within 30 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 tell the taxpayer during the initial contact that the request will be
closed if the Service does not receive the information within 30 calendar days. See
section 11.04 of this revenue procedure for instructions on submissions of additional
information.
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.
However, the taxpayer must pay another user fee before the case can be reopened.
Letter ruling request mistakenly
sent to key district director
A request for a letter ruling sent to the key district director that does not comply with
the provisions of this revenue procedure will be returned by the key district director so
that the taxpayer can make corrections before sending it to the national office.
Requires prompt submission of
additional information requested
after initial contact
.04Material facts furnished to the Service by telephone or fax, or orally at a
conference, must be promptly confirmed by letter to the Service with a declaration
that the information is provided under penalties of perjury in the form described in
section 9.02(13) of this revenue procedure. This confirmation and any additional
information requested by the Service that is not part of the information requested
during the initial contact must be furnished within 21 calendar days to be considered
part of the request.

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Encourage use of fax(1)To facilitate prompt action on letter ruling requests, taxpayers are encouraged to
submit additional information by fax as soon as the information is available. The
Service representative who requests additional information can provide a telephone
number to which the information can be faxed. A copy of this information and a
signed perjury statement, however, must be mailed or delivered to the Service.
Address to send additional
information
(2)Additional information should be sent to the same address as the original letter
ruling request. See section 9.04. However, the additional information should include
the name, office symbols, and room number of the Service representative who
requested the information and the taxpayer’s name and the case control number
(which the Service representative can provide).
30-day or 21-day period may be
extended if justified and
approved
(3)An extension of the 30-day period under section 11.03 or the 21-day period
under section 11.04, will be granted only if justified in writing by the taxpayer and
approved by the branch chief or group manager of the group to which the case is
assigned. A request for extension should be submitted before the end of the 30-day or
21-day period. If unusual circumstances close to the end of the 30-day or 21-day
period make a written request impractical, the taxpayer should notify the national
office within the 30-day or 21-day period that there is a problem and that the written
request for extension will be coming soon. 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.
If taxpayer does not submit
additional information
(4)If the taxpayer does not follow the instructions for submitting additional
information or requesting an extension within the time provided, a letter ruling will be
issued on the basis of the information on hand, or, if appropriate, no letter ruling will
be issued. When the Service decides not to issue a letter ruling because essential
information is lacking, the case will be closed and the taxpayer notified in writing. If
the Service receives the information after the letter ruling request is closed, the
request may be reopened and treated as a new request. However, the taxpayer must
pay another user fee before the case can be reopened.
Schedules a conference if
requested by taxpayer
.05A taxpayer may request a conference regarding a letter ruling request.
Normally, a conference is scheduled only when the national 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 section 9.03(5) 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 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 Service’s
approval or denial of the request for extension are the same as those explained in
section 11.04 of this revenue procedure regarding providing additional information.
Permits taxpayer one conference
of right
.06A taxpayer is entitled, as a matter of right, to only one conference in the
national office, except as explained under section 11.09 of this revenue procedure.
This conference normally will be held at the branch level and will be attended by a
person who, at the time of the conference, has the authority to sign the ruling letter in
his or her own name or for the branch chief.
When more than one branch has taken an adverse position on an issue in a letter
ruling request, or when the position ultimately adopted by one branch will affect that
adopted by another, a representative from each branch with the authority to sign in his
or her own name or for the branch chief will attend the conference. If more than one
subject is to be discussed at the conference, the discussion will constitute a conference
on each subject.
To have a thorough and informed discussion of the issues, the conference usually
will be held after the branch has had an opportunity to study the case. However, 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 the division director or
to any other official of the Service. But see section 11.09 of this revenue procedure
for situations in which the Service may offer additional conferences.

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Disallows verbatim recording of
conferences
.07Since 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
.08The senior Service representative present at the conference ensures that the
taxpayer has the opportunity to present views on all the issues in question. A Service
representative explains the Service’s tentative decision on the substantive issues and
the reasons for that decision. If the taxpayer asks the Service to limit the retroactive
effect of any letter ruling or limit the revocation or modification of a prior letter
ruling, a Service representative will discuss the recommendation concerning this issue
and the reasons for the recommendation. The Service representatives will not make a
commitment regarding the conclusion that the Service will finally adopt.
May offer additional conferences.09The Service will offer the taxpayer an additional conference if, after the
conference of right, an adverse holding is proposed, but on a new issue, or on the
same issue but on different grounds from those discussed at the first conference. There
is no right to another conference when a proposed holding is reversed at a higher level
with a result less favorable to the taxpayer, if the grounds or arguments on which the
reversal is based were discussed at the conference of right.
The limit on the number of conferences to which a taxpayer is entitled does not
prevent the Service from offering additional conferences, including conferences with
an official higher than the branch level, if the Service decides they are needed. Such
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 Service 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
.10The taxpayer should furnish to the national 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. See section 11.04 of this revenue procedure for instructions on submission
of additional information. If the additional information is not received within that
time, a ruling will be issued on the basis of the information on hand or, if appropriate,
no ruling will be issued.
Procedures for requesting an extension of the 21-day period and notifying the
taxpayer or the taxpayer’s representative of the Service’s approval or denial of the
requested extension are the same as those stated in section 11.04 of this revenue
procedure regarding submitting additional information.
May schedule pre-submission
conference
.11Sometimes it is advantageous to both the Service 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. Such conferences are held only
when the taxpayer actually intends to make a request and only on a time-available
basis. Generally, the taxpayer will be asked to provide a draft of the letter ruling
request or other detailed written description of the proposed transaction before the pre-
submission conference.
Any discussion of substantive issues at a pre-submission conference is advisory
only, is not binding on the Service, and cannot be relied upon as a basis for obtaining
retroactive relief under the provisions of §7805(b). A letter ruling request submitted
following a pre-submission conference will not necessarily be assigned to the branch
that held the pre-submission conference.
May, under limited
circumstances, schedule a
conference to be held by
telephone
.12A taxpayer may request that their conference of right be held by telephone.
This may occur, for example, where a taxpayer wants a conference of right but
believes that the issue involved does not warrant incurring the expense of traveling to
Washington, DC. If a taxpayer makes such a request, the branch chief or group
manager will decide if it is appropriate in the particular case to hold the conference of
right by telephone. If the request is approved by the branch chief or group manager,
the taxpayer will be advised when to call the Service representatives (not a toll-free
call).
May request draft of proposed
letter ruling at the completion of
the ruling process
.13To accelerate issuance of letter rulings, in appropriate cases near the completion
of the ruling process, the Service representative may request that the taxpayer or the
taxpayer’s representative submit a proposed draft of the letter ruling on the basis of

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discussions of the issues. The taxpayer, however, is not required to prepare a draft
letter ruling in order to receive a letter ruling.
The format of the submission should be discussed with the Service representative
who requests the draft letter ruling. The representative usually can provide a sample
format of a letter ruling and will discuss the facts, analysis, and letter ruling language
to include.
Taxpayer may also submit draft
on a word processing disk
In addition to a typed draft, taxpayers are encouraged to submit this draft on a disk
in either Word Perfect 5.1 or ASCII. The typed draft will become part of the
permanent files of the national office, and the word processing disk will not be
returned. If the Service representative requesting the draft letter ruling cannot answer
specific questions about the format of the word processing disk, the questions can be
directed to Alan Pipkin at (202) 622-8400 (Employee Plans), or Wayne Hardesty at
(202) 622-7644 (Exempt Organizations) (not toll-free calls).
The proposed letter ruling (both typed draft and word processing disk) should be
sent to the same address as any additional information and contain in the transmittal
the information that should be included with any additional information (for example,
a penalties of perjury statement is required). See section 11.04 of this revenue
procedure.
Advises the taxpayer of final
conclusions and, if the Service
will rule adversely, offers the
taxpayer the opportunity to
withdraw the letter ruling request
.14Generally, before the letter ruling is issued, the branch representative will
inform the taxpayer or the taxpayer’s authorized representative of the Service’s final
conclusions. If the Service is going to rule adversely, the taxpayer will be offered the
opportunity to withdraw the letter ruling request. If the taxpayer or the taxpayer’s
representative does not promptly notify the branch representative of a decision to
withdraw the ruling request, the adverse letter will be issued. The user fee will not be
refunded for a letter ruling request that is withdrawn. See section 10 of Rev. Proc. 96–
8, this Bulletin.
SECTION 12. WHAT EFFECT WILL
A LETTER RULING HAVE?
May be relied on subject to
limitations
.01A taxpayer ordinarily may rely on a letter ruling received from the Service
subject to the conditions and limitations described in this section.
Will not apply to another
taxpayer
.02A taxpayer may not rely on a letter ruling issued to another taxpayer. See
§ 6110(j)(3).
Will be used by a key district
director in examining the
taxpayer’s return
.03When determining a taxpayer’s liability, the key district director 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 reflected an accurate
statement of the material 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 key district director finds that a letter ruling
should be revoked or modified, unless a waiver is obtained from the national office,
the findings and recommendations of the key district director will be forwarded to the
national office for consideration before further action is taken by the key district
director. Such a referral to the national office will be treated as a request for technical
advice and the procedures of Rev. Proc. 96–5 will be followed. Otherwise, the letter
ruling is to be applied by the key district office in its determination of the taxpayer’s
liability. Appropriate coordination with the national office will be undertaken if any
field official having jurisdiction over a return or other matter proposes to reach a
conclusion contrary to a letter ruling previously issued to the taxpayer.
May be revoked or modified if
found to be in error
.04Unless it was part of a closing agreement as described in section 3.03 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 statute
of limitations unless the Service uses its discretionary authority under §7805(b) to
limit the retroactive effect of the revocation or modification.

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A letter ruling may be revoked or modified due to—
(1)a notice to the taxpayer to whom the letter ruling was issued;
(2)the enactment of legislation or ratification of a tax treaty;
(3)a decision of the United States Supreme Court;
(4)the issuance of temporary or final regulations; or
(5)the issuance of a revenue ruling, revenue procedure, notice, or other statement
published in the Internal Revenue Bulletin.
Consistent with these provisions, if a letter ruling relates to a continuing action or a
series of actions, it ordinarily will be applied until any one of the events described
above occurs or until it is specifically withdrawn. Publication of a notice of proposed
rulemaking will not affect the application of any letter ruling issued under the
procedures in this revenue procedure.
Not generally revoked or
modified retroactively
.05Except in rare or unusual circumstances, the revocation or modification of a
letter ruling will 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 misstatement or omission of material facts;
(2)the facts at the time of the transaction are not materially different from the facts
on which the letter ruling was based;
(3)there has been no change in the applicable law;
(4)the letter ruling was originally issued for a proposed transaction; and
(5)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 employee covered
by a ruling relating to a qualified plan of an employer is directly involved in such
ruling. However, the tax liability of a member of an industry is not directly involved
in a letter ruling issued to another member and, therefore, the holding in a revocation
or modification of a letter ruling to one member of an industry may be retroactively
applied to other members of the industry. 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 letter with retroactive effect, the letter
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 only to a
particular transaction
.06A 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. And, 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 (5) in section 12.05 of this
revenue procedure are met.
However, if a letter ruling on a transaction is later found to be in error or no longer
in accord with the position of the Service, it will not protect a similar transaction of
the taxpayer in the same year or later year.
Retroactive effect of revocation
or modification applied to a
continuing action or series of
actions
.07If 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 Assistant Commissioner (Employee Plans and Exempt Organizations)
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.
May be retroactively revoked or
modified when transaction is
completed without reliance on
the letter ruling
.08A taxpayer is not protected against retroactive revocation or modification of a
letter ruling involving a completed transaction other than those described in section
12.07 of this revenue procedure, because the taxpayer did not enter into the
transaction relying on a letter ruling.
Taxpayer may request that
retroactivity be limited
.09Under §7805(b), the Service may prescribe any extent to which a revocation or
modification of a letter ruling or determination letter will be applied without
retroactive effect.

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A taxpayer to whom a letter ruling or determination letter has been issued may
request that the Assistant Commissioner (Employee Plans and Exempt Organizations)
limit the retroactive effect of any revocation or modification of the letter ruling or
determination letter.
Format of request(1)Request for relief under §7805(b) must be made in required format.
A request to limit the retroactive effect of the revocation or modification of a letter
ruling must be in the general form of, and meet the general requirements for, a letter
ruling request. These requirements are given in section 9 of this revenue procedure.
Specifically, the request must also—
(a)state that it is being made under §7805(b);
(b)state the relief sought;
(c)explain the reasons and arguments in support of the relief requested (including a
discussion of the five items listed in section 12.05 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 revoking or modifying 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.
However, when notice is given by the key district director during an examination of
the taxpayer’s return or by the chief, appeals office, during consideration of the
taxpayer’s return before an appeals office, a request to limit retroactive effect must be
made in the form of a request for technical advice as explained in section 18 of Rev.
Proc. 96–5, 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.
Consideration of relief under §7805(b) will be included as one of the taxpayer’s
steps in exhausting administrative remedies only if the taxpayer has requested such
relief in the manner described in this revenue procedure. If the taxpayer does not
complete the applicable steps, the taxpayer will not have exhausted the taxpayer’s
administrative remedies as required by §7428(b)(2) and §7476(b)(3) and will, thus,
be precluded from seeking a declaratory judgment under §7428 or §7476. Where the
taxpayer has requested §7805(b) relief, the taxpayer’s administrative remedies will
not be considered exhausted until the national office has had a reasonable time to act
upon the 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 national office as explained in sections
11.05, 11.06, 11.07, 11.08 and 11.09 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 11.06 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 Service 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 13. WHAT EFFECT WILL
A DETERMINATION LETTER HAVE?
Has same effect as a letter
ruling
.01A determination letter issued by a key district director has the same effect as a
letter ruling issued to a taxpayer under section 12 of this revenue procedure.

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If a key district director proposes to reach a conclusion contrary to that expressed in
a determination letter, he or she need not refer the matter to the national office as is
required for a letter ruling found to be in error. However, the key district director
must refer the matter to the national office if the key district director desires to have
the revocation or modification of the determination letter limited under §7805(b).
Taxpayer may request that
retroactive effect of revocation
or modification be limited
.02A key district director does not have authority under §7805(b) to limit the
revocation or modification of the determination letter. Therefore, if a key district
director 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 key
district director who issued the determination letter to seek technical advice from the
national office. See section 18 of Rev. Proc. 96–5, this Bulletin.
Format of request(1)Request for relief under §7805(b) of the Code 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 17.06 of Rev. Proc. 96–5, 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 the five items listed in section 12.05 of this revenue procedure and any
other factors as they relate to the taxpayer’s particular situation); and
(d)include any documents bearing on the request.
Request for conference(2)Taxpayer may request a conference on application of §7805(b).
When technical advice is requested regarding the application of §7805(b), the
taxpayer has the right to a conference in the national office to the same extent as does
any taxpayer who is the subject of a technical advice request. See section 10 of Rev.
Proc. 96–5, this Bulletin.
Exhaustion of administrative
remedies
(3)Taxpayer steps in exhausting administrative remedies.
Consideration of relief under §7805(b) will be included as one of the taxpayer’s
steps in exhausting administrative remedies only if the taxpayer has requested such
relief in the manner described in this revenue procedure. If the taxpayer does not
complete the applicable steps, the taxpayer will not have exhausted the taxpayer’s
administrative remedies as required by §7428(b)(2) and §7476(b)(3) and will, thus,
be precluded from seeking a declaratory judgment under §7428 or §7476. Where the
taxpayer has requested §7805(b) relief, the taxpayer’s administrative remedies will
not be considered exhausted until the national office has had a reasonable time to act
upon the request.
SECTION 14. UNDER WHAT
CIRCUMSTANCES ARE MATTERS
REFERRED BETWEEN A KEY
DISTRICT OFFICE AND THE
NATIONAL OFFICE?
Requests for determination letters.01Requests for determination letters received by key district directors that, under
the provisions of this revenue procedure, may not be issued by a key district office,
will be forwarded to the national office for reply. The key district office will notify
the taxpayer that the matter has been referred.
Key district directors will also refer to the national office any request for a
determination letter that in their judgement should have the attention of the national
office.
No-rule areas.02If 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 the national office.
The key district office will notify the taxpayer that the Service will not issue a letter
ruling or a determination letter on the issue. See section 8 of this revenue procedure
for a description of no-rule areas.

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Requests for letter rulings.03Requests for letter rulings received by the national office that, under section 6
of this revenue procedure, may not be acted upon by the national office will be
forwarded to the key district 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 8 of this revenue procedure, and
the Service decides not to issue a letter ruling or an information letter, the national
office will notify the taxpayer and will then forward the request to the appropriate key
district office for association with the related return.
SEC. 15. WHAT IS THE EFFECT
OF THIS REVENUE PROCEDURE
ON OTHER DOCUMENTS?
Rev. Proc. 95–4 is superseded.
SEC. 16. EFFECTIVE DATEThis revenue procedure is effective January, 2, 1996.
DRAFTING INFORMATIONThe principal authors of this revenue procedure are Dave Flavin of the Exempt
Organizations Division and Lynette McCleary of the Employee Plans Division. For
further information regarding how this revenue procedure applies to employee plan
matters, contact the Employee Plans Division telephone assistance service between the
hours of 1:30 and 4:00 p.m., Eastern Time, Monday through Thursday, on (202)
622-6074/75 (not a toll-free call). Mrs. McCleary’s telephone number is (202)
622-6214 (not a toll-free call). For exempt organization matters, please contact Mr.
Flavin at (202) 622-7922 (not a toll-free call).

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INDEX
additional information.......................................................... sec. 9.02(8), 9.03, 11.03, 11.04
closing agreement................................................... sec. 3.03, 6.06(4), 9.02(4), 9.02(15), 12.04
conference................................................... sec. 9.02(9), 9.03(5), 11.05–.12, 12.09(2), 13.02(2)
disclose........................................................................................ sec. 9.02(9)
exempt organization............................................................................... sec. 6.01
expeditious handling............................................................................. sec. 9.03(3)
extension................................................................. sec. 6.02, 6.04, 11.04, 11.05, 11.10
fax..................................................................................... sec. 9.03(4), 11.04
fee..................................................................................... sec. 9.02(14), 11.03
hand delivered.................................................................................. sec. 9.04(1)
information letter...................................................................... sec. 3.07, 8.01, 14.03
no rule....................................................................................... sec. 8, 14.02
perjury statement.................................................................. sec. 9.02(13), 11.04, 11.13
power of attorney...................................................................... sec. 9.02(12), 9.03(2)
reliance....................................................................... sec. 3.09, 11.02, 11.11, 12, 13
representatives................................................................ sec. 3.09, 9.02(10)–(11), 9.03(2)
retroactive................................................................... sec. 11.02, 11.08, 11.11, 12, 13
revenue ruling................................................................ sec. 3.08, 6.07, 12.04, 12.09(1)
section 6110............................................................................. sec. 9.02(9), 12.02
status............................................................................................ sec. 9.07
technical advice................................................................. sec. 7.08, 12.03, 12.09(1), 13
telephone.................................................................... sec. 9.02(1), 11.04, 11.05, 11.12
where to send................................................................................... sec. 9.04
withdraw......................................................................................... sec. 9.08

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APPENDIX A
SAMPLE FORMAT FOR A LETTER RULING REQUEST
(Insert the date of request)
Internal Revenue Service
Assistant Commissioner (EP/EO)
Attention: CP:E:EP:T
P.O. Box 14073
Ben Franklin Station
Washington, DC 20044
Dear Sir or Madam:
(Insert the name of the taxpayer) (the ‘‘Taxpayer’’) requests a ruling on the proper treatment of (insert the subject matter of
the letter ruling request) under §(insert the number) of the Internal Revenue Code.
[If the taxpayer is requesting expeditious handling, the letter ruling request must contain a statement to that effect. This
statement must explain the need for expeditious handling. See section 9.03(3).]
A. STATEMENT OF FACTS
1.Taxpayer Information
[Provide the statements required by sections 9.02(1)(a), (b), (c), and (d) of Rev. Proc. 96–4, 1996–1 I.R.B. [insert page #].
(Hereafter, all references are to Rev. Proc. 96–4 unless otherwise noted.)]
For example, a taxpayer that maintains a qualified employee retirement plan and files an annual Form 5500 series of returns
may include the following statement to satisfy sections 9.02(1)(a), (b), (c), and (d):
The Taxpayer is a construction company with principal offices located at 100 Whatever Drive, Wherever, Maryland 12345,
and its telephone number is (123) 456-7890. The Taxpayer’s federal employer identification number is 00–1234567. The
Taxpayer uses the Form 5500 series of returns on a calendar year basis to report its qualified employee retirement plan and
trust.
The key district director of Internal Revenue for the Baltimore, Maryland district has audit jurisdiction over the Taxpayer’s
Federal tax returns.
2.Detailed Description of the 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 9.02(1)(c), 9.02(1)(d), and 9.02(2).]
B. RULING REQUESTED
[The ruling request should contain a concise statement of the ruling requested by the taxpayer.]
C. STATEMENT OF LAW
[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion, including any
authorities believed to be contrary to the position advanced in the ruling request. This statement must also identify any pending
legislation that may affect the proposed transaction. See sections 9.02(6), 9.02(7), and 9.02(8).]
D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. See sections 9.02(3), 9.02(6), 9.02(7), and
9.02(8).]
E. CONCLUSION
[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]
F. PROCEDURAL MATTERS
1.Rev. Proc. 96–4 Statements

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a.[The statement required by section 9.02(4).]
b.[The statement required by section 9.02(5).]
c.[The statement required by section 9.02(6) regarding whether the law in connection with the letter ruling request is
uncertain and whether the issue is adequately addressed by relevant authorities.]
d.[The statement required by section 9.02(7) when the taxpayer determines that there are no contrary authorities.]
e.[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 9.03(5).]
f.[If the taxpayer is requesting the letter ruling to be issued by fax, the ruling request should contain a statement to that
effect. This statement must also contain a waiver of any disclosure violations resulting from the fax transmission. See section
9.03(4).]
g.[If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement
to that effect. See section 9.03(1).]
2. Administrative
a.A Power of Attorney is enclosed. [See sections 9.02(12) and 9.03(2).]
b.The deletions statement and checklist required by Rev. Proc. 96–4 are enclosed. [See sections 9.02(9) and 9.02(17).]
c.The required user fee is enclosed. [See section 9.02(14).]
Very truly yours,
(Insert the name of the taxpayer or the taxpayer’s authorized representative)
By:
SignatureDate
Typed or printed name of
person signing request
DECLARATION: [See section 9.02(13).]
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best of
my knowledge and belief, the facts presented in support of the requested letter ruling are true, correct, and complete.
(Insert the name of the taxpayer)
By:
SignatureTitleDate
Typed or printed name of
person signing declaration

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APPENDIX B
CHECKLIST
IS YOUR 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. To
ensure that your request is in order, use this checklist. Complete the five 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 be cause for returning your request or deferring substantive consideration of the request. However, 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.
DISTRICT HAVING AUDIT JURISDICTION
ATTORNEY/P.O.A.
PRIMARY CODE SECTION
CIRCLE ONEITEM
Yes No N/A1.Does your request involve an issue under the jurisdiction of the Assistant Commissioner (Employee Plans
and Exempt Organizations)? See section 5 of Rev. Proc. 96–4, 1996–1 I.R.B. [insert page #], for issues
under the jurisdiction of other offices. (Hereafter, all references are to Rev. Proc. 96–4 unless otherwise
noted.)
Yes No N/A2.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 private letter ruling? Before preparing your request, you may
want to call the branch in the Office of the Assistant Commissioner (Employee Plans and Exempt
Organizations) 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. The appropriate branch to call
for this information may be obtained by calling (202) 622-8400 (Employee Plans matters), or (202) 622-8200
(Exempt Organizations matters) (not toll-free calls).
Yes No N/A
Page
3.If the request involves an employee plans qualification matter under §401(a), §409, or §4975(e)(7),
have you demonstrated that the request satisfies the three criteria in section 6.03 for a national office ruling?
Yes No N/A
Pate
4.If the request deals with a completed transaction, have you filed the return for the year in which the
transaction was completed? See sections 6.01 and 6.02.
Yes No5.Are you requesting a letter ruling on a hypothetical situation or question? See section 8.02.
Yes No6.Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 8.02.
Yes No7.Are you requesting the letter ruling for only part of an integrated transaction? See section 8.03.
Yes No8.Have you submitted another letter ruling request for the transaction covered by this request?
Yes No9.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 6.07.
Yes No
Pages
10.Have you included a complete statement of all the facts relevant to the transaction? See section 9.02(1).

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Yes No N/A11.Have you submitted with the request true copies of all wills, deeds, plan documents, and other
documents relevant to the transaction, and labelled and attached them in alphabetical sequence? See section
9.02(2).
Yes No
Page
12.Have you included, rather than merely by reference, all material facts from the documents in the
request? Are they accompanied by an analysis of their bearing on the issues that specifies the document
provisions that apply? See section 9.02(3).
Yes No
Page
13.Have you included the required statement regarding whether the same issue in the letter ruling request is
in an earlier return of the taxpayer or in a return for any year of a related taxpayer? See section 9.02(4).
Yes No
Page
14.Have you included the required statement regarding whether the Service previously ruled on the same or
similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 9.02(5).
Yes No
Page
15.Have you included the required statement regarding whether the taxpayer, a related taxpayer, a
predecessor, or any representatives previously submitted the same or similar issue but withdrew it before the
letter ruling was issued? See section 9.02(5).
Yes No
Page
16.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 9.02(6).
Yes No
Pages
17.Have you included the required statement of relevant authorities in support of your views? See section
9.02(6).
Yes No N/A
Pages
18.Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations,
notices, revenue rulings, or revenue procedures you determined to be contrary to the position advanced? See
section 9.02(7), which states that taxpayers are encouraged to inform the Service of such authorities.
Yes No N/A
Page
19.If you determined that there are no contrary authorities, have you included a statement to this effect in
your request? See section 9.02(7).
Yes No N/A
Page
20.Have you included in your request a statement identifying any pending legislation that may affect the
proposed transaction? See section 9.02(8).
Yes No21.Is the request accompanied by the deletions statement required by §6110? See section 9.02(9).
Yes No N/A
Page
22. Have you (or your authorized representative) signed and dated the request? See section 9.02(10).
Yes No N/A23.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 9.02(12).
Yes No N/A
Page
24.Have you included, signed and dated, the penalties of perjury statement in the form required by section
9.02(13)?
Yes No N/A25.Have you included the correct user fee with the request and made your check or money order payable to
the Internal Revenue Service? See section 9.02(14) and Rev. Proc. 96-8, page [insert #], this Bulletin, for the
correct amount and additional information on user fees.
Yes No N/A26.Are you submitting your request in duplicate if necessary? See section 9.02(15).
Yes No N/A
Pages
27. 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 9.03(1).
Yes No N/A28. If you want the original of the ruling to be sent to a representative, does the power of attorney contain a
statement to that effect? See section 9.03(2).
Yes No N/A29. 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 9.03(2).
Yes No N/A
Page
30.If you have more than one representative, have you designated whether the second representative listed
on the power of attorney is to receive a copy of the letter ruling? See section 9.03(2).
Yes No N/A31.If you want your letter ruling request to be processed ahead of the regular order or by a specific date,
have you requested expeditious handling in the form required by section 9.03(3) and stated a compelling
need for such action in the request?
Yes No N/A
Page
32.If you are requesting that a copy of the letter ruling be issued by facsimile (fax) transmission, have you
included a statement containing a waiver of any disclosure violations resulting from the fax transmission?
See section 9.03(4).

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Yes No N/A
Page
33.If you want to have a conference on the issues involved in the request, have you included a request for
conference in the ruling request? See section 9.03(5).
Yes No N/A34.If your request is covered by any of the guideline revenue procedures or other special requirements
listed in section 10 of Rev. Proc. 96–4, have you complied with all of the requirements of the applicable
revenue procedure?
Yes No N/A
Page
35.If you are requesting relief under §7805(b) (regarding retroactive effect), have you complied with all of
the requirements in section 12.09?
Yes No N/A36.Have you addressed your request to the appropriate office listed in section 9.04? Improperly addressed
requests may be delayed (sometimes for over a week) in reaching the appropriate office for initial
processing.
SignatureTitle or authorityDate
Typed or printed name of
person signing checklist

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26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 96–5
TABLE OF CONTENTS
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
p. 131
SECTION 2. WHAT SIGNIFICANT
CHANGES HAVE BEEN MADE TO
REV. PROC. 95–5?
p. 131
SECTION 3. WHAT IS TECHNICAL
ADVICE?
p. 132
SECTION 4. ON WHAT ISSUES
MAY OR MUST TECHNICAL
ADVICE BE REQUESTED UNDER
THIS PROCEDURE?
p. 132.01Issues under the jurisdiction of the Assistant Commissioner (Employee
Plans and Exempt Organizations)
.02Farmers’ cooperatives
.03Basis for requesting technical advice
.04Areas of mandatory technical advice
SECTION 5. ON WHAT ISSUES
MUST TECHNICAL ADVICE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
p. 133.01Matters (other than farmers’ cooperatives) under the jurisdiction of the
Associate Chief Counsel (Domestic), the Associate Chief Counsel
(Employee Benefits and Exempt Organizations), and the Associate
Chief Counsel (International)
.02Alcohol, tobacco, and firearms taxes
.03Excise taxes
SECTION 6. MAY TECHNICAL
ADVICE BE REQUESTED FOR A
§ 301.9100–1 REQUEST DURING
THE COURSE OF AN
EXAMINATION?
p. 133.01Generally a §301.9100–1 request is a letter ruling request.
.02Statute of limitations
.03Address to send a §301.9001–1 request
.04If return is being examined, taxpayer must notify the national office
which will notify the key district or appeals office
SECTION 7. WHO IS
RESPONSIBLE FOR REQUESTING
TECHNICAL ADVICE?
p. 134.01Key district director or chief, appeals office determines whether
technical advice should be requested
.02Taxpayer may ask that issue be referred for technical advice
SECTION 8. WHEN SHOULD
TECHNICAL ADVICE BE
REQUESTED?
p. 134.01Uniformity of position lacking
.02When technical advice can be requested
.03At earliest possible stage
SECTION 9. WHAT MUST BE
INCLUDED IN THE REQUEST?
p. 135.01Statement of issues, facts, law, and arguments
.02Statement pertaining to statute of limitations
.03General provisions of §§6104 and 6110 of the Code
.04Application of §6104 of the Code
.05Statement identifying information to be deleted from public inspection
.06Transmittal Form 5565, Request for Technical Advice—EP/EO
.07Number of copies of request to be submitted
.08Power of attorney
.09Case files
SECTION 10. HOW ARE
REQUESTS HANDLED?
p. 137.01Taxpayer notified
.02Conference offered
.03If the taxpayer disagrees with the Service’s statement of facts
.04If the Service disagrees with the taxpayer’s statement of facts

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.05If the taxpayer has not submitted the required deletions statement
.06Criminal or civil fraud cases
SECTION 11. HOW DOES A
TAXPAYER APPEAL A KEY
DISTRICT OR AN APPEALS
OFFICE DECISION NOT TO
SEEK TECHNICAL ADVICE?
p. 138.01Taxpayer notified of decision not to seek technical advice
.02Taxpayer may appeal decision not to seek technical advice
.03Chief, EP/EO division, or chief, appeals office, determines whether
technical advice will be sought
.04Chief’s decision may be reviewed but not appealed
SECTION 12. HOW ARE
REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN?
p. 139.01Taxpayer notified
.02National office may provide views
SECTION 13. HOW ARE
CONFERENCES SCHEDULED?
p. 140.01If requested, offered to the taxpayer when adverse technical advice
proposed
.02Normally held within 21 days of contact with the taxpayer
.0321-day period may be extended if justified and approved
.04Denial of extension cannot be appealed
.05Entitled to one conference of right
.06Conference may not be taped
.07Conference may be delayed to address a request for relief under
§ 7805(b) of the Code
.08Service makes tentative recommendations
.09Additional conferences may be offered
.10Additional information submitted after the conference
.11May, under limited circumstances, schedule a conference to be held by
telephone
SECTION 14. HOW IS STATUS OF
REQUEST OBTAINED?
p. 142.01Taxpayer may request status
.02Key district director or chief, appeals office may request status
SECTION 15. HOW DOES THE
NATIONAL OFFICE PREPARE
THE TECHNICAL ADVICE
MEMORANDUM?
p. 142.01Delegates authority to branch chiefs
.02Determines whether request has been properly made
.03Contacts the key district or appeals office to discuss issues
.04Determines whether any matters in the request should be referred to
another branch
.05Informs the key district or appeals office if additional information is
needed
.06Gives tentative conclusion
.07If a tentative conclusion has not been reached, gives date estimated for
tentative conclusion
.08Advises the key district or appeals office that tentative conclusion is
not final
.09Advises the key district or appeals office of final conclusions
.10If additional information is requested
.11Additional information sent to the national office and copy sent to the
key district director or chief, appeals office
.12Informs the taxpayer when requested deletions will not be made
.13Prepares reply in two parts
.14Routes replies to appropriate office
SECTION 16. HOW DOES A KEY
DISTRICT OR AN APPEALS OFFICE
USE THE TECHNICAL ADVICE?
p. 145.01Generally applies advice in processing the taxpayer’s case
.02Discussion with the taxpayer
.03Gives copy to the taxpayer
.04Taxpayer may protest deletions not made

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.05When no copy is given to the taxpayer
SECTION 17. WHAT IS THE
EFFECT OF TECHNICAL ADVICE?
p. 145.01Applies only to the taxpayer for whom technical advice was requested
.02Usually applies retroactively
.03Generally applied retroactively to modify or revoke prior technical
advice
.04Applies to continuing action or series of actions until specifically
withdrawn, modified or revoked
.05Applies to continuing action or series of actions until material facts
change
.06Not applied retroactively under certain conditions
SECTION 18. HOW MAY
RETROACTIVE EFFECT BE
LIMITED?
p. 147.01Commissioner has discretionary authority under §7805(b) of the Code
.02Taxpayer may request Commissioner to exercise authority
.03Form of request to limit retroactivity—before an examination
.04Form of request to limit retroactivity—during course of examination
.05Form of request to limit retroactivity—technical advice that does not
modify or revoke prior memorandum
.06Taxpayer’s right to a conference
.07Exhaustion of administrative remedies—employee plans determination
letter requests
.08Exhaustion of administrative remedies—exempt organization matters
SECTION 19. WHAT IS THE
EFFECT OF THIS REV. PROC. ON
OTHER DOCUMENTS?
p. 148
SECTION 20. EFFECTIVE DATEp. 148
INDEXp. 149
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
This revenue procedure explains when and how the Assistant Commissioner
(Employee Plans and Exempt Organizations) gives technical advice to a key district
director or a chief, appeals office in the employee plans areas (including actuarial
matters) and exempt organizations areas. It also explains the rights a taxpayer has
when a key district director or a chief, appeals office requests technical advice
regarding a tax matter.
The term key district director means the district director of one of the key district
offices set forth in Rev. Proc. 96–8, page 187, this Bulletin, and section 20.06 of Rev.
Proc. 96–6, page 151, this Bulletin, as updated on Form 8717, User Fee for Employee
Plan Determination Letter Request, or Form 8718, User Fee for Exempt Organization
Determination Letter Request. The reference in this revenue procedure to the chief,
appeals office includes, when appropriate, the Assistant Regional Director of Appeals
(Large Case). In addition, any reference to appeals officer includes, when appropriate,
the team chief. Finally, any reference to EP/EO means Employee Plans and Exempt
Organizations.
SECTION 2. WHAT SIGNIFICANT
CHANGES HAVE BEEN MADE TO
REV. PROC. 95–5?
.01Section 8.03 is amended to provide that the key district or appeals office’s
decision whether to request technical advice should not be influenced by the fact that
the issue is raised late in the determination letter, examination or appeals process.
.02Sections 9.05 and 15.10 are amended to clarify that a stamped signature is not
permitted on, respectively, a deletions statement and a penalties of perjury statement.
.03A new section 9.07 is added to provide that the key district or appeals office
must submit three (3) copies of a technical advice request to the national office.
.04Section 10.03 is amended to provide that the option of not issuing technical
advice by the national office applies when the key district director or the chief,
appeals office, and the taxpayer cannot agree on the material facts and the request for
technical advice does not involve the issue of whether a letter ruling or determination
letter should be modified or revoked. If a technical advice request requests involves
the issue of whether a letter ruling or determination letter should be modified or
revoked, the national office will issue technical advice.

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.05Section 13.09 is amended to clarify that the EP/EO specialist or appeals officer
may be offered the opportunity to participate in any additional conference, including a
conference with an official higher than the branch level.
SECTION 3. WHAT IS TECHNICAL
ADVICE?
‘‘Technical advice’’ means advice or guidance in the form of a memorandum
furnished by the Office of the Assistant Commissioner (Employee Plans and Exempt
Organizations), (hereinafter referred to as the ‘‘national office’’), upon the request of a
key district director or a chief, appeals office, submitted in accordance with the
provisions of this revenue procedure in response to any technical or procedural
question that develops during any proceeding on the interpretation and proper
application of tax law, tax treaties, regulations, revenue rulings, notices or other
precedents published by the national office to a specific set of facts. Such proceedings
include (1) the examination of a taxpayer’s return, (2) consideration of a taxpayer’s
claim for refund or credit, (3) a request for a determination letter, (4) any other matter
involving a specific taxpayer under the jurisdiction of the chief, EP/EO division or
chief, appeals office, or (5) processing and considering nondocketed cases in an
appeals office. However, they do not include cases in which the issue in the case is in
a docketed case for any year.
For purposes of technical advice, the word ‘‘taxpayer’’ includes all persons subject
to any provision of the Internal Revenue Code (including tax-exempt entities such as
governmental units which issue municipal bonds within the meaning of §103(a)), and
when appropriate, their representatives. However, the instructions and the provisions
of this revenue procedure do not apply to requests for technical advice involving any
matter pertaining to either tax-exempt bonds or mortgage credit certificates. Instead,
the procedures under Rev. Proc. 96–2, page 60, this Bulletin must be followed.
Technical advice resolves complex issues and helps establish and maintain
consistent holdings throughout the Internal Revenue Service. A key district director or
a chief, appeals office, may raise an issue in any tax period, even though technical
advice may have been asked and furnished for the same or similar issue for another
tax period.
Technical advice does not include legal advice furnished to the key district or
appeals office in writing or orally, other than advice furnished pursuant to this revenue
procedure. In accordance with section 11.01 of this revenue procedure, a taxpayer’s
request for referral of an issue for technical advice will not be denied merely because
the national office has provided legal advice, other than advice furnished pursuant to
this revenue procedure, to the key district or appeals office on the matter.
SECTION 4. ON WHAT ISSUES
MAY OR MUST TECHNICAL
ADVICE BE REQUESTED UNDER
THIS PROCEDURE?
Issues under the jurisdiction of
the Assistant Commissioner
(Employee Plans and Exempt
Organizations)
.01Generally, the instructions of this revenue procedure apply to requests for
technical advice on any issue under the jurisdiction of the Assistant Commissioner
(Employee Plans and Exempt Organizations).
Farmers’ cooperatives.02If a key district director, chief, appeals office, or a taxpayer requests technical
advice on a determination letter under §521 of the Code, the procedures under this
revenue procedure, Rev. Proc. 90–27, 1990–1 C.B. 514, as modified by Rev. Proc.
96–8, as well as §601.201(n) of the Statement of Procedural Rules, must be followed.
Basis for requesting technical
advice
.03Requests for technical advice are encouraged on any technical or procedural
questions arising in connection with any case of the type described in section 3 at any
stage of the proceedings in the key district or appeals office that cannot be resolved
on the basis of law, regulations, or a clearly applicable revenue ruling or other
published precedent.
Areas of mandatory technical
advice
.04Requests for §7805(b) relief are mandatory technical advice with respect to all
exempt organizations and employee plans matters.
Except for those exemption application cases handled in the national office in
accordance with section 6.02 of Rev. Proc. 90–27, key district and appeals offices are
required to request technical advice on their exempt organization cases concerning
qualification for exemption or foundation status for which there is no published
precedent or for which there is reason to believe that nonuniformity exists.

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Regarding employee plans matters, a request for technical advice is required in
cases concerning (1) proposed adverse or proposed revocation letters on collectively-
bargained plans, (2) plans for which the Service is proposing to issue a revocation
letter because of certain fiduciary actions that violate the exclusive benefit rule of
§ 401(a) of the Code and are subject to Part 4 of Subtitle B of Title I of the Employee
Retirement Income Security Act of 1974, Pub. L. 93–406, 1974–3 C.B. 1, 43, (3)
amendments to defined contribution plans pursuant to Rev. Proc. 94–41, 1994–1 C.B.
711, in connection with a waiver of the minimum funding standard and a request for a
determination letter (See section 16 of Rev. Proc. 96–6 and section 3.04 of Rev. Proc.
94–41), (4) termination/reestablishment and spinoff-termination cases in which the key
district office proposes that the Implementation Guidelines are not applicable, or (5) a
situation in which the employer has had a prior termination/reestablishment or spinoff-
termination within 15 years of the time of the transaction.
SECTION 5. ON WHAT ISSUES
MUST TECHNICAL ADVICE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
Matters (other than farmers’
cooperatives) under the
jurisdiction of the Associate
Chief Counsel (Domestic), the
Associate Chief Counsel
(Employee Benefits and Exempt
Organizations), and the Associate
Chief Counsel (International)
.01All procedures for obtaining technical advice on issues (other than farmers’
cooperatives) under the jurisdiction of the Associate Chief Counsel (Domestic), the
Associate Chief Counsel (Employee Benefits and Exempt Organizations), and the
Associate Chief Counsel (International) including any matter pertaining to tax-exempt
bonds or mortgage credit certificates, §526 of the Code (shipowners’ protection and
indemnity associations), §528 (certain homeowners’ associations) and issues
involving the interpretation or application of the federal income tax laws and income
tax treaties relating to international transactions are contained in Rev. Proc. 96–2.
Alcohol, tobacco, and firearms
taxes
.02Procedures for obtaining technical advice specifically applicable to federal
alcohol, tobacco, and firearms taxes under subtitle E of the Code are under the
jurisdiction of the Bureau of Alcohol, Tobacco and Firearms.
Excise taxes.03Technical advice procedures regarding excise taxes (other than excise taxes
imposed under Chapters 41, 42 and 43 of the Code), and employment taxes that
employee plans and exempt organizations are subject to, are set forth in Rev. Proc.
96–2.
SECTION 6. MAY TECHNICAL
ADVICE BE REQUESTED FOR A
§ 301.9100–1 REQUEST DURING
THE COURSE OF AN
EXAMINATION?
Generally a §301.9100–1
request is a letter ruling request
.01Except with regard to exemption application matters involving §§505(c) and
508, requests for an extension of time for making an election or other application for
relief under §301.9100–1 of the Procedure and Administration Regulations made after
the examination of the taxpayer’s return has begun or made after the issues in the
return are being considered by an appeals office are letter ruling requests. Therefore,
§ 301.9100–1 requests should be submitted pursuant to Rev. Proc. 96–4 and require
payment of the applicable user fee listed in section 6 of Rev. Proc. 96–8.
Statute of limitations.02The running of any applicable period of limitations is not suspended for the
period during which a §301.9100–1 request has been filed. If the period of limitations
on an assessment under §6501(a) for the year for which a timely filed election would
have been made or for any affected succeeding year will expire before receipt of a
§ 301.9100–1 letter ruling, the Service ordinarily will not issue a §301.9100–1 ruling.
See section 5.02(2) of Rev. Proc. 92–85, 1992–2 C.B. 490, as modified by Rev. Proc.
93–28, 1993–2 C.B. 344. Therefore, the taxpayer must secure a consent under
§ 6501(c)(4) to extend the period of limitations on assessment. Note that the filing of
a protective claim for refund under §6511 does not extend the period of limitations
on assessment. If §301.9100–1 relief is granted, the Service may require the taxpayer
to consent to an extension of the period of limitations for assessment. See section 8.02
of Rev. Proc. 92–85.
Address to send a §301.9001–1
request
.03Requests made under §301.9100–1, pursuant to Rev. Proc. 96–4, together with
the appropriate user fee, must be submitted to the Internal Revenue Service by the
taxpayer and addressed as follows:

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Requests involving employee plans matters:
Internal Revenue Service
Assistant Commissioner (EP/EO) Attn: CP:E:EP:T
P.O. Box 14073
Ben Franklin Station
Washington, D.C. 20044
Requests involving exempt organization matters:
Internal Revenue Service
Assistant Commissioner (EP/EO) Attn: CP:E:EO
P.O. Box 120
Ben Franklin Station
Washington, D.C. 20044
The package should be marked: RULING REQUEST SUBMISSION. A
§ 301.9100–1 request may also be hand delivered to the drop box at the 12th Street
entrance of 1111 Constitution Ave., N.W., Washington, DC. No receipt will be given
at the drop box. See Rev. Proc. 96–8 for the appropriate user fee.
If return is being examined,
taxpayer must notify the national
office which will notify the key
district or appeals office
.04If the taxpayer’s return covering the issue presented in the §301.9100–1
request is being examined by a key district office or the issues in the return are being
considered by an appeals office, the taxpayer must notify the national office. See,
section 6.04 of Rev. Proc. 96–4. The national office will notify the appropriate key
district office or appeals office considering the return that a request for §301.9100–1
relief has been submitted to the national office. The EP/EO specialist or the appeals
officer is not authorized to deny consideration of a request for §301.9100–1 relief.
The letter ruling will be mailed to the taxpayer and a copy will be sent to the
appropriate key district office or appeals office.
SECTION 7. WHO IS
RESPONSIBLE FOR REQUESTING
TECHNICAL ADVICE?
Key district director or chief,
appeals office determines
whether technical advice should
be requested
.01The key district director or chief, appeals office determines whether to request
technical advice on any issue being considered. Each request must be submitted
through proper channels and signed by a person who is authorized to sign for the key
district director or chief, appeals office. The mandatory technical advice described in
section 4.04(3) of this revenue procedure, for cases concerning amendments to defined
contribution plans in connection with a waiver of the minimum funding standard and a
request for a determination letter, is treated as if it had been a request for technical
advice submitted by the key district director. See section 16 of Rev. Proc. 96–6 and
section 3.04 of Rev. Proc. 94–41 for the procedural rules applicable to this particular
mandatory technical advice.
Taxpayer may ask that issue be
referred for technical advice
.02While a case is under the jurisdiction of a key district director or chief, appeals
office, a taxpayer may request that an issue be referred to the national office for
technical advice.
SECTION 8. WHEN SHOULD
TECHNICAL ADVICE BE
REQUESTED?
Uniformity of position lacking.01Technical advice should be requested when there is a lack of uniformity
regarding the disposition of an issue or when an issue is unusual or complex enough
to warrant consideration by the national office.
When technical advice can be
requested
.02The provisions of this revenue procedure apply only to a case under the
jurisdiction of a key district director or chief, appeals office. Technical advice may
also be requested on issues considered in a prior appeals disposition, not based on
mutual concessions for the same tax period of the same taxpayer, if the appeals office
that had the case concurs in the request. A key district director may not request
technical advice on an issue if an appeals office is currently considering an identical
issue of the same taxpayer (or of a related taxpayer within the meaning of §267 or a
member of an affiliated group of which the taxpayer is also a member within the
meaning of §1504). A case remains under the jurisdiction of the key district director
even though an appeals office has the identical issue under consideration in the case

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of another taxpayer (not related within the meaning of §267 or §1504) in an entirely
different transaction. With respect to the same taxpayer or the same transaction, when
the issue is under the jurisdiction of an appeals office, and the applicability of more
than one kind of federal tax is dependent upon the resolution of that issue, a key
district director may not request technical advice on the applicability of any of the
taxes involved.
A key district director or chief, appeals office also may not request technical advice
on an issue if the same issue of the same taxpayer (or of a related taxpayer within the
meaning of §267 or a member of an affiliated group of which the taxpayer is also a
member within the meaning of §1504) is in a docketed case for the same taxpayer (or
for a related taxpayer or a member of an affiliated group of which the taxpayer is also
a member) for any taxable year.
At the earliest possible stage.03Once an issue is identified, all requests for technical advice should be made at
the earliest possible stage in any proceeding. The fact that the issue is raised late in
the examination or appeals process should not influence, however, the key district or
appeals office’s decision to request technical advice.
SECTION 9. WHAT MUST BE
INCLUDED IN THE REQUEST?
Statement of issues, facts, law,
and arguments
.01Whether initiated by the taxpayer or by a key district or appeals office, a
request for technical advice must include the facts and the issues for which technical
advice is requested, and a written statement clearly stating the applicable law and the
arguments in support of both the Service’s and the taxpayer’s position on the issue or
issues.
Taxpayer must submit statement
if the taxpayer initiates request
for technical advice
(1)If the taxpayer initiates the request for technical advice, the taxpayer must
submit to the EP/EO specialist or appeals officer, at the time the taxpayer initiates the
request, a written statement—
(a)stating the facts and the issues;
(b)explaining the taxpayer’s position;
(c)discussing any relevant statutory provisions, tax treaties, court decisions,
regulations, revenue rulings, revenue procedures, notices, or any authority supporting
the taxpayer’s position; and
(d)stating the reasons for requesting technical advice.
If the EP/EO specialist or appeals officer determines that technical advice will be
requested, the taxpayer’s statement will be forwarded to the national office with the
request for technical advice.
Taxpayer is encouraged to
submit statement if Service
initiates request for technical
advice
(2)If the request for technical advice is initiated by a key district or appeals office,
the taxpayer is encouraged to submit the written statement described in section 9.01(1)
of this revenue procedure. If the taxpayer’s statement is received after the request for
technical advice has been forwarded to the national office, the statement will be
forwarded to the national office for association with the technical advice request.
Statement of authorities contrary
to taxpayer’s position
(3)Whether the request for technical advice is initiated by the taxpayer or by a key
district or appeals office, the taxpayer is also encouraged to comment on any
legislation, tax treaties, regulations, revenue rulings, revenue procedures, or court
decisions contrary to the taxpayer’s position. If the taxpayer determines that there are
no contrary authorities, a statement to this effect would be helpful. If the taxpayer
does not furnish either contrary authorities or a statement that none exists, the Service
in complex cases or those presenting difficult or novel issues may request submission
of contrary authorities or a statement that none exists.
Statement pertaining to statute
of limitations
.02As part of the request, the key district or appeals office must submit a
statement, in addition to the criteria on Form 5565 referred to below, that (1) the
applicable statute of limitations has at least 180 calendar days to run before its
expiration or (2) the applicable statute of limitations will run prior to 180 calendar
days from the date a request is transferred to the national office and the case should
be processed on an expedited basis. If the key district or appeals office obtains an
extension of the statute of limitations while the request is being processed in the
national office, the office obtaining the extension must also submit a revised statement
to the national office advising it of the new expiration date.

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If there are less than 61 calendar days remaining before the expiration of the statute
of limitations with respect to a case being processed on an expedited basis, the case
will be returned to the office responsible for statute control of the file unless a
decision is made pursuant to section 7(10)(14)1.5:(8) of the Internal Revenue Manual
that the case can be timely processed. The national office will telephone (or fax notice
of) its decision to the requesting key district or appeals office and will place a
memorandum in the file to reflect whatever procedural steps have been taken.
General provisions of
§§6104 and 6110
.03Generally, §6104(a)(1)(B) provides that an application filed with respect to: (1)
the qualification of a pension, profit-sharing, or stock bonus plan under §401(a) or
§ 403(a) or an individual retirement arrangement under §408(a) or §408(b) will be
open to public inspection pursuant to regulations as will (2) any application filed for
an exemption from tax under §501(a) of an organization forming part of a plan or
account described above. Generally, §6110(a) provides that except as provided
otherwise, written determinations (defined in §6110(b)(1) as rulings, determination
letters, and technical advice memorandums) and any related background file document
will be open to public inspection pursuant to regulations.
Application of §6104.04The requirements for submitting statements and other materials or proposed
deletions in technical advice memorandums before public inspection is allowed do not
apply to requests for any documents to the extent §6104 applies.
Statement identifying information
to be deleted from public
inspection
.05The text of a technical advice memorandum subject to §6110 may be open to
public inspection. The Service deletes certain information from the text before it is
made available for inspection. To help the Service make the deletions required by
§ 6110(c), the taxpayer must provide a statement indicating the deletions desired
(‘‘deletions statement’’). If the taxpayer does not submit the deletions statement, the
Service will follow the procedures in section 10.05 of this revenue procedure.
A taxpayer who wants only names, addresses, and identifying numbers deleted
should state this in the deletions statement. If the taxpayer wants more information
deleted, the deletions statement must be accompanied by a copy of the technical
advice request and supporting documents on which the taxpayer should bracket the
material to be deleted. The deletions statement must indicate the statutory basis, under
§ 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the technical advice
memorandum is issued, additional deletion statements may be submitted.
The deletions statement must not appear in the request for technical advice but,
instead, must be made in a separate document attached to the request.
The deletions statement must be signed and dated by the taxpayer or the taxpayer’s
authorized representative. A stamped signature is not permitted.
The taxpayer should follow these same procedures to propose deletions from any
additional information submitted after the initial request for technical advice. An
additional deletions statement, however, is not required with each submission of
additional information if the taxpayer’s initial deletions statement requests that only
names, addresses, and identifying numbers are to be deleted and the taxpayer wants
the same information deleted from the additional information.
Transmittal Form 5565, Request
for Technical Advice—EP/EO
.06The key district or appeals office should use Form 5565, Request for Technical
Advice—EP/EO, for transmitting a request for technical advice to the national office
using the addresses listed below.
Address to send requests from
key district offices
Employee Plans
Internal Revenue Service
Attn: CP:E:EP
1111 Constitution Ave., N.W.
Room 6052 CP:E:EO:P:2
Washington, DC 20224
Exempt Organizations
Internal Revenue Service
Attn: CP:E:EO
1111 Constitution Ave., N.W.
Room 6052 CP:E:EO:P:2
Washington, DC 20224

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Address to send requests from
appeals offices
Internal Revenue Service
Attn: C:AP:FS
Box 68
901 D Street, S.W.
Washington, DC 20024
Number of copies of request to
be submitted
.07The key district or the appeals office must submit (3) three copies of the
request for technical advice to the national office.
Power of attorney.08Any authorized representative, as described in section 9.02 of Rev. Proc. 96–4,
whether or not enrolled to practice, must comply with Treasury Department Circular
No. 230 (31 CFR part 10 (1995)) and with the conference and practice requirements
of the Statement of Procedural Rules (26 CFR part 601). It is preferred that Form
2848, Power of Attorney and Declaration of Representative, be used with regard to
requests for technical advice under this revenue procedure.
Case files.09The key district or appeals office will submit copies of the original documents
(the administrative file) to the national office accompanying the applicable Form 5565.
The key district or appeals office will maintain the original documents (including any
power of attorney).
SECTION 10. HOW ARE
REQUESTS HANDLED?
Taxpayer notified.01Regardless of whether the taxpayer or the Service initiates the request for
technical advice, the key district or appeals office will notify the taxpayer that
technical advice is being requested and will give the taxpayer a copy of the arguments
that are being provided to the national office in support of its position, except as noted
in section 10.06 of this revenue procedure.
If the EP/EO specialist or appeals officer initiates the request for technical advice,
he or she will give the taxpayer a copy of the statement of the pertinent facts and the
issues proposed for submission to the national office.
Conference offered.02When notifying the taxpayer that technical advice is being requested, the EP/
EO specialist or appeals officer will also tell the taxpayer about the right to a
conference in the national office if an adverse decision is indicated and will ask the
taxpayer whether such a conference is desired.
If the taxpayer disagrees
with the Service’s statement
of facts
.03If the EP/EO specialist or appeals officer initiates the request for technical
advice, the taxpayer has 10 calendar days after receiving the statement of facts and
specific issues to indicate in writing any disagreement. A taxpayer who needs more
than 10 calendar days must justify, in writing, the request for an extension of time.
The extension is subject to the approval of the chief, EP/EO division, or the chief,
appeals office.
After receiving the taxpayer’s statement of the areas of disagreement, every effort
should be made to reach agreement on the facts and the specific points at issue before
the matter is referred to the national office. If an agreement cannot be reached, the
key district or appeals office will notify the taxpayer in writing. Within 10 calendar
days after receiving the written notice, the taxpayer may submit a statement of the
taxpayer’s understanding of the facts and the specific points at issue. A taxpayer who
needs more than 10 calendar days to prepare the statement of understanding must
justify, in writing, the request for an extension of time. The extension is subject to the
approval of the chief, EP/EO division, or the chief, appeals office. Both the statements
of the taxpayer and the key district or appeals office will be forwarded to the national
office with the request for technical advice.
When the key district director or the chief, appeals office, and the taxpayer cannot
agree on the material facts and the request for technical advice does not involve the
issue of whether a letter ruling or determination letter should be modified or revoked,
the national office, at its discretion, may refuse to provide technical advice. If the
national office chooses to issue technical advice, it will base its advice on the facts
provided by the key district or appeals office.
If a request for technical advice involves the issue of whether a letter ruling or
determination letter should be modified or revoked, the national office will issue the
technical advice.

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If the Service disagrees
with the taxpayer’s statement
of facts
.04If the taxpayer initiates the action to request technical advice, and the
taxpayer’s statement of the facts and issues is not wholly acceptable to the key district
or appeals office, the Service will notify the taxpayer in writing of the areas of
disagreement. The taxpayer has 10 calendar days after receiving the written notice to
reply to it. A taxpayer who needs more than 10 calendar days must justify in writing
the request for an extension of time. The extension is subject to the approval of the
chief, EP/EO division, or the chief, appeals office.
If an agreement cannot be reached, both the statements of the taxpayer and the key
district or appeals office will be forwarded to the national office with the request for
technical advice. When the disagreement involves material facts essential to the
preliminary assessment of the case, the key district director or the chief, appeals
office, may refuse to refer a taxpayer initiated request for technical advice to the
national office.
If the key district director or the chief, appeals office, submits a case involving a
disagreement of material facts, the national office, at its discretion, may refuse to
provide technical advice. If the national office chooses to issue technical advice, it
will base its advice on the facts provided by the key district or appeals office.
If the taxpayer has not submitted
the required deletions statement
.05When the key district or appeals office initiates the request for technical advice,
the taxpayer has 10 calendar days after receiving the statement of facts and issues to
be submitted to the national office to provide the deletions statement required under
§ 6110(c) if public inspection is permitted pursuant to §6110 (see section 9.05 of this
revenue procedure). In such a case, if the taxpayer does not submit the deletions
statement, the key district director or the chief, appeals office, will tell the taxpayer
that the statement is required.
When the taxpayer initiates the request for technical advice and does not submit
with the request a deletions statement as required by §6110, the key district director
or the chief, appeals office, will ask the taxpayer to submit the statement. If the key
district director or the chief, appeals office, does not receive the deletions statement
within 10 calendar days after asking the taxpayer for it, the key district director or the
chief, appeals office, may decline to submit the request for technical advice.
However, if the key district director or the chief, appeals office, decides to request
technical advice, whether initiated by the key district or appeals office or by the
taxpayer, in a case in which the taxpayer has not submitted the deletions statement,
the national office will make those deletions that the Commissioner of Internal
Revenue determines are required by §6110(c).
Criminal or civil fraud cases.06The provisions of this section (about referring issues upon the taxpayer’s
request, obtaining the taxpayer’s statement of the areas of disagreement, telling the
taxpayer about the referral of issues, giving the taxpayer a copy of the arguments
submitted, submitting proposed deletions, and granting conferences in the national
office) do not apply to a technical advice memorandum described in §6110(g)(5)(A)
that involves a matter that is the subject of or is otherwise closely related to a
criminal or civil fraud investigation, or a jeopardy or termination assessment.
In these cases, a copy of the technical advice memorandum is given to the taxpayer
after all proceedings in the investigations or assessments are complete, but before the
Commissioner mails the notice of intention to disclose the technical advice
memorandum under §6110(f)(1). The taxpayer may then provide the statement of
proposed deletions to the national office.
SECTION 11. HOW DOES A
TAXPAYER APPEAL A KEY
DISTRICT OR AN APPEALS
OFFICE DECISION NOT TO
SEEK TECHNICAL ADVICE?
Taxpayer notified of decision
not to seek technical advice
.01If the EP/EO specialist or appeals officer concludes that a taxpayer’s request
for referral of an issue to the national office for technical advice does not warrant
referral, the EP/EO specialist or appeals officer will tell the taxpayer. A taxpayer’s
request for such a referral will not be denied merely because the national office
provided legal advice, other than advice furnished pursuant to this revenue procedure,
to the key district or appeals office on the matter.

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Taxpayer may appeal decision
not to seek technical advice
.02The taxpayer may appeal the decision of the EP/EO specialist or the appeals
officer not to request technical advice. To do so, the taxpayer must submit to that
official, within 10 calendar days after being told of the decision, a statement of the
facts, law, and arguments on the issue and the reasons why the taxpayer believes the
matter should be referred to the national office for technical advice. A taxpayer who
needs more than 10 calendar days must justify in writing the request for an extension
of time. The extension is subject to the approval of the chief, EP/EO division, or the
chief, appeals office.
Chief, EP/EO division, or chief,
appeals office, determines
whether technical advice will
be sought
.03The EP/EO specialist or the appeals officer submits the taxpayer’s statement
through proper channels to the chief, EP/EO division, or the chief, appeals office,
along with the EP/EO specialist’s or the appeals officer’s statement of why the issue
should not be referred to the national office. The chief determines, on the basis of the
statements, whether technical advice will be requested.
If the chief determines that technical advice is not warranted and proposes to deny
the request, the taxpayer is told in writing about the determination. In the letter to the
taxpayer, the chief states the reasons for the proposed denial (except in unusual
situations when doing so would be prejudicial to the best interests of the
Government). The taxpayer has 10 calendar days after receiving the letter to notify the
chief of agreement or disagreement with the proposed denial.
Chief’s decision may be reviewed
but not appealed
.04The taxpayer may not appeal the decision of the chief, EP/EO division, or the
chief, appeals office, not to request technical advice from the national office.
However, if the taxpayer does not agree with the proposed denial, all data on the issue
for which technical advice has been sought, including the taxpayer’s written request
and statements, will be submitted to the Assistant Commissioner (Employee Plans and
Exempt Organizations) or the National Director of Appeals as appropriate.
The Assistant Commissioner (Employee Plans and Exempt Organizations), through
the Director, Employee Plans Division, or the Director, Exempt Organizations
Division or, if appropriate, the National Director of Appeals will review the proposed
denial solely on the basis of the written record, and no conference will be held with
the taxpayer or the taxpayer’s representative. The appropriate Director or his or her
representative may consult within the national office, if necessary, and will notify the
key district office or appeals office within 45 calendar days of receiving all the data
regarding the request for technical advice whether the proposed denial is approved or
disapproved. The key district office or appeals office will then notify the taxpayer.
While the matter is being reviewed, the key district office or the appeals office
suspends action on the issue (except when the delay would prejudice the
Government’s interest).
The provisions of this revenue procedure regarding review of the proposed denial of
a request for technical advice continue to be applicable in those situations in which
the authority normally exercised by the key district director or chief, appeals office,
has been delegated to another official.
SECTION 12. HOW ARE
REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN?
Taxpayer notified.01Once a request for technical advice has been sent to the national office, only a
key district director or a chief, appeals office, may withdraw a request for technical
advice. He or she may ask to withdraw a request at any time before the responding
transmittal memorandum transmitting the technical advice is signed.
The key district director or the chief, appeals office, as appropriate, must notify the
taxpayer in writing of an intent to withdraw the request for technical advice except (1)
when the period of limitations on assessment is about to expire and the taxpayer has
declined to sign a consent to extend the period, or (2) when such notification would
be prejudicial to the best interests of the Government.
If the taxpayer does not agree that the request for technical advice should be
withdrawn, the procedures in section 11 of this revenue procedure must be followed.
National office may provide
views
.02When a request for technical advice is withdrawn, the national office may send
its views to the key district director or the chief, appeals office, when acknowledging
the withdrawal request. In an appeals case, acknowledgment of the withdrawal request

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should be sent to the appropriate appeals office, through the National Director of
Appeals, C:AP:FS. In appropriate cases, the subject matter may be published as a
revenue ruling or as a revenue procedure.
SECTION 13. HOW ARE
CONFERENCES SCHEDULED?
If requested, offered to the
taxpayer when adverse technical
advice proposed
.01If, after the technical advice request is analyzed, it appears that technical advice
adverse to the taxpayer will be given, and if a conference has been requested, the
taxpayer will be informed, by telephone if possible, of the time and place of the
conference.
Normally held within 21 days of
contact with the taxpayer
.02The conference must be held within 21 calendar days after the taxpayer is
contacted. If conferences are being arranged for more than one request for technical
advice for the same taxpayer, they will be scheduled to cause the least inconvenience
to the taxpayer. If considered appropriate, the national office will notify the EP/EO
specialist or appeals officer of the scheduled conference and will offer the EP/EO
specialist or appeals officer the opportunity to attend the conference. The Assistant
Commissioner (EP/EO), the National Director of Appeals, the key district director, or
the chief, appeals office may designate other Service representatives to attend the
conference in lieu of, or in addition to, the EP/EO specialist or the appeals officer.
21-day period may be extended
if justified and approved
.03An extension of the 21-day period will be granted only if the taxpayer justifies
it in writing, and the appropriate branch chief (or his or her delegate) approves it. The
request for an extension should be submitted before the end of the 21-day period. If
unusual circumstances near the end of the period make a timely written request
impractical, the national office should be told orally before the end of the period about
the problem and about the forthcoming written request for an extension. The taxpayer
will be told promptly (and later in writing) of the approval or denial of the requested
extension.
Denial of extension cannot be
appealed
.04There is no right to appeal the denial of an extension request. If the national
office is not advised of problems with meeting the 21-day period, or if the written
request is not sent promptly after the national office is notified of problems with
meeting the 21-day period, the case will be processed on the basis of the existing
record.
Entitled to one conference of
right
.05A taxpayer is entitled by right to only one conference in the national office
unless one of the circumstances discussed in section 13.09 of this revenue procedure
exists. This conference is normally held at the branch level in the appropriate division
(Employee Plans Division or Exempt Organizations Division). It is attended by a
person who has authority to sign the transmittal memorandum discussed in section
15.13 on behalf of the branch chief.
When more than one branch has taken an adverse position on an issue in the
request, or when the position ultimately adopted by one branch will affect another
branch’s determination, a representative from each branch with authority to sign for
the branch chief will attend the conference. If more than one subject is discussed at
the conference, the discussion constitutes the conference of right for each subject
discussed.
To have a thorough and informed discussion of the issues, the conference usually is
held after the branch has had an opportunity to study the case. However, the taxpayer
may request that the conference of right be held earlier in the consideration of the
case than the Service would ordinarily designate.
The taxpayer has no right to appeal the action of a branch to a Division Director or
to any other Service official. But see section 13.09 for situations in which the Service
may offer additional conferences.
Conference may not be taped.06Because conference procedures are informal, no tape, stenographic, or other
verbatim recording of a conference may be made by any party.
Conference may be delayed to
address a request for relief
under §7805(b)
.07In the event of a tentative adverse determination, the branch representatives
may offer the taxpayer the option of delaying the conference so that the taxpayer can
prepare and submit a brief requesting relief under §7805(b) (discussed in section 18
of this revenue procedure). In these cases, the Service will schedule a conference on
the tentatively adverse position and the §7805(b) relief request within 10 days of
receiving the taxpayer’s §7805(b) request.

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Service makes tentative
recommendations
.08The senior Service representative at the conference ensures that the taxpayer
has full opportunity to present views on all the issues in question. The Service
representatives explain the tentative decision on the substantive issues and the reasons
for it.
If the taxpayer requests relief under §7805(b) (regarding limitation of retroactive
effect), the representative will discuss the tentative recommendation concerning the
request for relief and the reason for the tentative recommendation.
No commitment will be made as to the conclusion that the Service will finally
adopt regarding the outcome of the §7805(b) issue or on any other issue discussed.
Additional conferences may be
offered
.09The Service 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 grounds different from those discussed at the first conference.
When a proposed holding is reversed at a higher level with a result less favorable to
the taxpayer, the taxpayer has no right to another conference if the grounds or
arguments on which the reversal is based were discussed at the conference of right.
The limitation on the number of conferences to which a taxpayer is entitled does
not prevent the national office from inviting a taxpayer to attend additional
conferences, including conferences with an official higher than the branch level, if
national office personnel think they are necessary. Such 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 Service
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.
In accordance with section 13.02 of this revenue procedure, the EP/EO specialist or
appeals officer will be offered the opportunity to participate in any additional
taxpayer’s conference, including a conference with an official higher than the branch
level. Section 13.02 of this revenue procedure also provides that other Service
representatives are allowed to participate in the conference.
Additional information submitted
after the conference
.10Within 21 calendar days after the conference, the taxpayer must furnish to the
national office any additional data, lines of reasoning, precedents, etc., that the
taxpayer proposed and discussed at the conference but did not previously or
adequately present in writing. This additional information must be submitted by letter
with a penalties of perjury statement in the form described in section 15.10 of this
revenue procedure.
The taxpayer must also send a copy of the additional information to the key district
director or the chief, appeals office, for comment. Any comments must be furnished
promptly to the appropriate branch in the national office. If the key district director or
the chief, appeals office, does not have any comments, he or she must notify the
branch representative promptly.
If the additional information would have a significant impact on the facts in the
request for technical advice, the national office will ask the key district director or the
chief, appeals office, for comments on the facts contained in the additional
information submitted. The key district director or the chief, appeals office, will give
the additional information prompt attention.
If the additional information is not received from the taxpayer within 21 days, the
technical advice memorandum will be issued on the basis of the existing record.
An extension of the 21-day period may be granted only if the taxpayer justifies it in
writing, and the appropriate branch chief (or his or her delegate) approves the
extension. Procedures for requesting an extension of the 21-day period and notifying
the taxpayer of the Services’s decision are the same as those in sections 13.03 and
13.04 of this revenue procedure.
May, under limited
circumstances, schedule a
conference to be held by
telephone
.11Infrequently, taxpayers request that their conference of right be held by
telephone. This may occur, for example, when a taxpayer wants a conference of right
but believes that the issue does not warrant the expense of traveling to Washington,
DC. If a taxpayer makes such a request, the branch chief, or his or her delegate of the

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branch to which the case is assigned, will decide if it is appropriate in the particular
case to hold the conference of right by telephone. If the request is approved, the
taxpayer will be advised when to call the Service representatives (not a toll-free call).
In accordance with section 13.02 of this revenue procedure, the EP/EO specialist or
appeals officer will be offered the opportunity to participate in the telephone
conference. Section 13.02 of this revenue procedure also provides that Service
representatives are allowed to participate in the conference.
SECTION 14. HOW IS STATUS OF
REQUEST OBTAINED?
Taxpayer may request status.01The taxpayer or the taxpayer’s representative may obtain information on the
status of the request for technical advice by contacting the key district or appeals
office that requested the technical advice. See section 15.08 of this revenue procedure
concerning the time for discussing the tentative conclusion with the taxpayer’s
representative. See section 16.02 of this revenue procedure regarding discussions of
the contents of the technical advice memorandum with the taxpayer or the taxpayer’s
representative.
Key district director or chief,
appeals office may request
status
.02The key district or appeals office will be given status updates on the technical
advice quarterly by the national office branch chief assigned to the request. In
addition, a key district director or chief, appeals office, may get current information
on the status of the request for technical advice by calling the office of the appropriate
branch chief. Those offices and their matters of responsibility are listed below:
Telephone Numbers
(Area Code 202)
Official(not toll-free)
Chief, Employee Plans
Technical Branch 1;622-6077
Branch 2;622-8400
Branch 3;622-8447
Branch 4;622-8457
Branch 5622-8165
Chief, Employee Plans
Projects Branch 1;622-7428
Branch 2;622-7882
Branch 3622-7389
Chief, Employee Plans
Actuarial Branch 1;622-8330
Branch 2;622-7529
Branch 3622-7789
Chief, Exempt
Organizations Technical
Branch 1;622-8715
Branch 2;622-8140
Branch 3;622-8120
Branch 4;622-8130
Branch 5622-6861
See section 15.09 of this revenue procedure about discussing the final conclusions
with the key district or appeals office. Further, the key district director or the chief,
appeals office will be notified at the time the technical advice memorandum is mailed.
SECTION 15. HOW DOES THE
NATIONAL OFFICE PREPARE THE
TECHNICAL ADVICE
MEMORANDUM?
Delegates authority to branch
chiefs
.01The authority to issue technical advice on issues under the jurisdiction of the
Assistant Commissioner (Employee Plans and Exempt Organizations) has largely been
delegated to the Chiefs, Employee Plans Technical Branches; Chiefs, Employee Plans
Projects Branches; Chiefs, Employee Plans Actuarial Branches; and Chiefs, Exempt
Organizations Technical Branches.

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Determines whether request has
been properly made
.02Requests for technical advice generally are given priority and processed
expeditiously. As soon as the request for technical advice is assigned, the technical
employee analyzes the file to see whether it meets all requirements of sections 7
through 9 of this revenue procedure.
However, if the request does not comply with the requirements of section 9.05 of
this revenue procedure relating to the deletions statement, the Service will follow the
procedure in the last paragraph of section 10.05 of this revenue procedure.
Contacts the key district or
appeals office to discuss issues
.03Usually, within 21 calendar days after the branch receives the request for
technical advice, a representative of the branch telephones the key district or appeals
office to discuss the procedural and substantive issues in the request that come within
the branch’s jurisdiction.
Determines whether any matters
in the request should be referred
to another branch
.04If the technical advice request concerns matters within the jurisdiction of more
than one branch, a representative of the branch that received the original technical
advice request generally informs the key district or appeals office within 21 calendar
days of receiving the request that—
(1)the matters within the jurisdiction of another branch have been referred to the
other branch or office for consideration, and
(2)a representative of the other branch or office will contact the key district or
appeals office about the referral of the technical advice request within 21 calendar
days after receiving it in accordance with section 15.03 above.
Informs the key district or
appeals office if additional
information is needed
.05The branch representative will inform the key district or appeals office that the
case is being returned if substantial additional information is required to resolve an
issue. Cases should be returned for additional information when significant unresolved
factual variances exist between the statement of facts submitted by the key district or
appeals office and the taxpayer. They should also be returned if major procedural
problems cannot be resolved by telephone.
If only minor procedural deficiencies exist, the branch will request the additional
information in the most expeditious manner without returning the case.
Gives tentative conclusion.06If all necessary information has been provided, the branch representative
discusses with the key district or appeals office his or her tentative conclusion.
If a tentative conclusion has not
been reached, gives date
estimated for tentative
conclusion
.07If a tentative conclusion has not been reached because of the complexity of the
issue, the branch representative informs the key district or appeals office of the
estimated date the tentative conclusion will be made.
Advises the key district or
appeals office that preliminary
conclusion not final
.08Because the branch representative’s tentative conclusion may change during the
preparation and review of the technical advice memorandum, the tentative conclusion
should not be considered final. Therefore, neither the branch representative nor the
key district or appeals office should advise the taxpayer or the taxpayer’s
representative of the tentative conclusion before the scheduling of the adverse
conference.
Advises the key district or
appeals office of final
conclusions
.09In all cases, the branch representative should inform the EP/EO specialist or
appeals officer of the national office’s final conclusions. The EP/EO specialist or the
appeals officer should be offered the opportunity to discuss the issues and the national
office’s final conclusions before the technical advice memorandum is issued.
If additional information is
requested
.10If, following the initial contact referenced in section 15.03 of this revenue
procedure, it is determined, after discussion with the appropriate branch chief or
reviewer, that additional information is needed, a branch representative will obtain the
additional information from the taxpayer, the key district director, or the chief, appeals
office, in the most expeditious manner possible. Any additional information requested
from the taxpayer by the national office must be submitted by letter with a penalties
of perjury statement within 21 calendar days after the request for information is made.
Penalties of perjury statementAdditional information submitted to the national 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 facts represented are true, correct, and complete.’’ This
declaration must be signed and dated by the taxpayer, not the taxpayer’s
representative. A stamped signature is not permitted.

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A written request for an extension of time to submit additional information must be
received by the national office within the 21 day period, giving compelling facts and
circumstances to justify the proposed extension. The appropriate branch chief (or his
or her delegate) will determine whether to grant or deny the request for an extension
of the 21-day period. There is no right to appeal the denial of an extension request.
If the national office does not receive the additional information within 21 calendar
days, plus any extensions granted by the branch chief (or his or her delegate), the
national office will process the technical advice memorandum based on the existing
record.
Additional information sent to the
national office and copy sent to
the key district director or chief,
appeals office
.11If additional information is requested, it should be sent by the taxpayer to the
national office.
Also, the taxpayer must send a copy to either the key district director or the chief,
appeals office, for comment. Any comments must be furnished promptly to the
appropriate branch in the national office. If the key district director or the chief,
appeals office, does not have any comments, he or she must notify the branch
representative promptly.
Informs the taxpayer when
requested deletions will not
be made
.12Generally, before replying to the request for technical advice, the national
office informs the taxpayer orally or in writing of the material likely to appear in the
technical advice memorandum that the taxpayer proposed be deleted but that the
Service has determined should not be deleted.
If so informed, the taxpayer may submit within 10 calendar days any further
information or other arguments supporting the taxpayer’s proposed deletions.
The Service will attempt to resolve all disagreements about proposed deletions
before the national office replies to the request for technical advice. However, the
taxpayer does not have the right to a conference to resolve any disagreements about
material to be deleted from the text of the technical advice memorandum. These
matters, however, may be considered at any conference otherwise scheduled for the
request.
Prepares reply in two parts.13The national office’s reply to a technical advice request is in two parts. Each
part identifies the taxpayer by name, address, identification number, and year or years
involved.
The first part of the reply is a transmittal memorandum (Form M–6361). In unusual
cases, it is a way of giving the key district or appeals office administrative or other
information that under the nondisclosure statutes or for other reasons may not be
discussed with the taxpayer.
The second part is the technical advice memorandum, which contains—
(1)a statement of the issues;
(2)a statement of the facts pertinent to the issues;
(3)a statement of the pertinent law, tax treaties, regulations, revenue rulings, and
other precedents published in the Internal Revenue Bulletin, and court decisions;
(4)a discussion of the rationale underlying the conclusions reached by the national
office; and
(5)the conclusions of the national office.
The conclusions give direct answers, whenever possible, to the specific issues raised
by the key district or appeals office. However, the national office is not bound by the
precise statement of the issues as submitted by the taxpayer or by the key district or
appeals office and may reframe the issues to be answered in the technical advice
memorandum. The discussion of the issues will be in sufficient detail so that the key
district or appeals officials will understand the reasoning underlying the conclusion.
Accompanying a technical advice memorandum subject to §6110, is a notice under
§ 6110(f)(1) of intention to disclose the technical advice memorandum (including a
copy of the version proposed to be open to public inspection and notations of third
party communications under §6110(d)).
Routes replies to appropriate
office
.14Replies to requests for technical advice are addressed to the key district director
or the chief, appeals office. Replies to requests from appeals should be routed to the
appropriate appeals office through the National Director of Appeals, C:AP:FS.

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SECTION 16. HOW DOES A KEY
DISTRICT OR AN APPEALS OFFICE
USE THE TECHNICAL ADVICE?
Generally applies advice in
processing the taxpayer’s case
.01The key district director or the chief, appeals office, must process the
taxpayer’s case on the basis of the conclusions in the technical advice memorandum
unless—
(1)the key district director or the chief, appeals office, decides that the conclusions
reached by the national office in a technical advice memorandum should be
reconsidered, or
(2)the chief, appeals office, in the case of technical advice unfavorable to the
taxpayer, decides to settle the issue in the usual manner under existing authority.
In any event, with or without requesting reconsideration, the key district director
must follow the conclusions in a technical advice memorandum as to all issues, and
the chief, appeals office, must follow the conclusions in a technical advice
memorandum on issues of an organization’s/plan’s status or qualification. Thus, if the
technical advice memorandum received by a key district director concerns an
organization’s/plan’s status or qualification, the organization/plan has no appeal to the
appeals office on those specific issues.
Discussion with the taxpayer.02The national office will not discuss the contents of the technical advice
memorandum with the taxpayer or the taxpayer’s representative until the taxpayer has
been given a copy by the key district or appeals office.
Gives copy to the taxpayer.03The key district director or the chief, appeals office, only after adopting the
technical advice, gives the taxpayer (1) a copy of the technical advice memorandum
described in section 15.13, and (2) the notice under §6110(f)(1) of intention to
disclose the technical advice memorandum (including a copy of the version proposed
to be open to public inspection and notations of third party communications under
§ 6110(d)).
This requirement does not apply to technical advice memorandums involving
criminal or civil fraud investigations, or jeopardy or termination assessments, as
described in section 10.06 of this revenue procedure, or documents to which §6104
(document open to public inspection) applies as described in section 9.03.
Taxpayer may protest deletions
not made
.04After receiving the notice under §6110(f)(1) of intention to disclose the
technical advice memorandum, the taxpayer may protest the disclosure of certain
information in it. The taxpayer must submit a written statement within 20 calendar
days identifying those deletions not made by the Service that the taxpayer believes
should have been made. The taxpayer must also submit a copy of the version of the
technical advice memorandum proposed to be open to public inspection with brackets
around deletions proposed by the taxpayer that have not been made by the national
office.
Generally, the national office considers only the deletion of material that the
taxpayer has proposed be deleted or other deletions as required under §6110(c) before
the national office reply is sent to the key district director or the chief, appeals office.
Within 20 calendar days after it receives the taxpayer’s response to the notice under
§ 6110(f)(1), the national office must mail the taxpayer its final administrative
conclusion about the deletions to be made.
When no copy is given to the
taxpayer
.05In those cases in which the national office tells the key district director or the
chief, appeals office, that a copy of the technical advice memorandum should not be
given to the taxpayer, the key district director or the chief, appeals office, will tell the
taxpayer that no copy will be given if the taxpayer requests a copy.
SECTION 17. WHAT IS THE
EFFECT OF TECHNICAL ADVICE?
Applies only to the taxpayer for
whom technical advice was
requested
.01A taxpayer may not rely on a technical advice memorandum issued by the
Service for another taxpayer.
Usually applies retroactively.02Except when stated otherwise, a holding in a technical advice memorandum is
applied retroactively, unless the Assistant Commissioner (Employee Plans and Exempt
Organizations) exercises discretionary authority under §7805(b) to limit the

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retroactive effect of the holding. Section 17.06 below lists the criteria necessary for
granting §7805(b) relief, and section 18 of this revenue procedure describes the effect
of §7805(b) relief.
Generally applied retroactively to
modify or revoke prior technical
advice
.03A holding that modifies or revokes a holding in a prior technical advice
memorandum is applied retroactively, with one exception. If the new holding is less
favorable to the taxpayer than the earlier one, it generally is not applied to the period
in which the taxpayer relied on the prior holding in situations involving continuing
transactions.
Applies to continuing action or
series of actions until
specifically withdrawn, modified,
or revoked
.04If a technical advice memorandum relates to a continuing action or a series of
actions, ordinarily it is applied until specifically withdrawn or until the conclusion is
modified or revoked by enactment of legislation, ratification of a tax treaty, a decision
of the United States Supreme Court, or the issuance of regulations (temporary or
final), a revenue ruling, or other statement published in the Internal Revenue Bulletin.
Publication of a notice of proposed rulemaking does not affect the application of a
technical advice memorandum.
Applies to continuing action or
series of actions until material
facts change
.05A taxpayer is not protected against retroactive modification or revocation of a
technical advice memorandum involving a continuing action or a series of actions
occurring after the material facts on which the technical advice memorandum is based
have changed.
Not applied retroactively under
certain conditions
.06Generally, a technical advice memorandum that modifies or revokes a letter
ruling or another technical advice memorandum or a determination letter is not applied
retroactively either to the taxpayer to whom or for whom the letter ruling or technical
advice memorandum or determination letter was originally issued, or to a taxpayer
whose tax liability was directly involved in such letter ruling or technical advice
memorandum or determination letter if—
(1)there has been no misstatement or omission of material facts;
(2)the facts at the time of the transaction are not materially different from the facts
on which the letter ruling or technical advice memorandum or determination letter was
based;
(3)there has been no change in the applicable law;
(4)in the case of a letter ruling, it was originally issued on a prospective or
proposed transaction; and
(5)the taxpayer directly involved in the letter ruling or technical advice
memorandum or determination letter acted in good faith in relying on the letter ruling
or technical advice memorandum or determination letter, and the retroactive
modification or revocation would be to the taxpayer’s detriment. For example, the tax
liability of each employee covered by a letter ruling or technical advice memorandum
or determination letter relating to a pension plan of an employer is directly involved
in the letter ruling or technical memorandum or determination letter. However, the tax
liability of members of an industry is not directly involved in a letter ruling or
technical advice memorandum or determination letter issued to one of the members,
and the holding in a modification or revocation of a letter ruling or technical advice
memorandum or determination letter to one member of an industry may be
retroactively applied to other members of the industry. By the same reasoning, a tax
practitioner may not obtain the nonretroactive application to one client of a
modification or revocation of a letter ruling or technical advice memorandum or
determination letter previously issued to another client.
When a letter ruling or determination letter to a taxpayer or a technical advice
memorandum involving a taxpayer is modified or revoked with retroactive effect, the
notice to the taxpayer, except in fraud cases, sets forth the grounds on which the
modification or revocation is being made and the reason why the modification or
revocation is being applied retroactively.
In order for a technical advice memorandum that modifies or revokes a letter ruling
or another technical advice memorandum or a determination letter not to be applied
retroactively either to the taxpayer to whom or for whom the letter ruling, technical
advice memorandum or determination letter was originally issued, or to a taxpayer
whose tax liability was directly involved in such letter ruling, technical advice
memorandum or determination letter, such taxpayer generally must request relief
under §7805(b) in the manner described in section 18 below.

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SECTION 18. HOW MAY
RETROACTIVE EFFECT BE
LIMITED?
Commissioner has discretionary
authority under §7805(b)
.01Under §7805(b) the Commissioner or the Commissioner’s delegate has the
discretion to prescribe the extent, if any, to which a technical advice memorandum
will be applied without retroactive effect.
Taxpayer may request
Commissioner to exercise
authority
.02A taxpayer who has received a technical advice memorandum or for whom a
technical advice request is pending may request that the Assistant Commissioner
(Employee Plans and Exempt Organizations), the Commissioner’s delegate, exercise
the discretionary authority under §7805(b) to limit the retroactive effect of any
holding stated in the technical advice memorandum or to limit the retroactive effect of
any subsequent modification or revocation of the technical advice memorandum.
Form of request to limit
retroactivity —before an
examination
.03When a technical advice memorandum that concerns a continuing transaction is
modified or revoked by, for example, a subsequent revenue ruling or final regulations,
a request to limit the retroactive effect of the modification or revocation of the
technical advice memorandum must be made in the form of a request for a letter
ruling if submitted before examination of the return that contains the transaction that
is the subject of the request for letter ruling. See Rev. Proc. 96–4.
Form of request to limit
retroactivity—during course of an
examination
.04When, during the course of an examination of a taxpayer’s return by a key
district director or consideration by the chief, appeals office, a taxpayer is informed
that the key district director or the chief, appeals office, recommends that a technical
advice memorandum be modified or revoked, a request to limit the retroactive
application of the modification or revocation of the technical advice memorandum
must itself be made in the form of a request for technical advice. See sections 7
through 9 of this revenue procedure and sections 18.07 and 18.08 below.
The taxpayer must also submit a statement that the request is being made pursuant
to §7805(b). This statement must also indicate the relief requested and give the
reasons and arguments in support of the relief requested. It must also be accompanied
by any documents bearing on the request. The explanation should discuss the five
items listed in section 17.06 of this revenue procedure as they relate to the taxpayer’s
situation.
The taxpayer’s request, including the statement that the request is being made
pursuant to §7805(b), must be forwarded by the key district director or the chief,
appeals office, to the national office for consideration.
Form of request to limit
retroactivity—technical advice
that does not modify or revoke
prior memorandum
.05A request to limit the retroactive effect of a holding in a technical advice
memorandum that does not modify or revoke a technical advice memorandum may be
made as part of that technical advice request, either initially, or at any time before the
technical advice memorandum is issued by the national office. In such a case, the
taxpayer must also submit a statement in support of the application of §7805(b), as
described in section 18.04 above.
Taxpayer’s right to a conference.06When a request for technical advice concerns only the application of §7805(b),
the taxpayer has the right to a conference in the national office in accordance with the
provisions of section 13 of this revenue procedure.
If the request for application of §7805(b) is included in the request for technical
advice on the substantive issues or is made before the conference of right on the
substantive issues, the §7805(b) issues will be discussed at the taxpayer’s one
conference of right.
If the request for the application of §7805(b) is made as part of a pending technical
advice request after a conference has been held on the substantive issues, and the
Service determines that there is justification for having delayed the request, then the
taxpayer will have the right to one conference of right concerning the application of
§ 7805(b), with the conference limited to discussion of this issue.
Exhaustion of administrative
remedies—employee plans
determination letter requests
.07Where the applicant has requested the key district director to seek technical
advice on the applicability of §7805(b) relief to a qualification issue under §401(a)
pursuant to a determination letter request, the applicant’s administrative remedies will
not be considered exhausted until the national office has a reasonable time to act on
the request for technical advice. (See section 21 of Rev. Proc. 96–6.)

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Exhaustion of administrative
remedies—exempt organization
matters
.08Where technical advice has been requested pursuant to an exempt organiza-
tion’s request for §7805(b) relief from the retroactive application of an adverse
determination within the meaning of §7428(a)(1), the exempt organization’s
administrative remedies will not be considered exhausted, within the meaning of
§ 7428(b)(2), until the national office has a reasonable time to act on the request for
technical advice.
SECTION 19. WHAT IS THE
EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?
Rev. Proc. 95–5 is superseded.
SECTION 20. EFFECTIVE DATEThis revenue procedure is effective January 2, 1996.
DRAFTING INFORMATIONThe principal authors of this revenue procedure are Michael Rubin of the Employee
Plans Division and Dave Flavin of the Exempt Organizations Division. For further
information regarding how this revenue procedure applies to employee plans matters,
please contact the Employee Plans Division’s taxpayer assistance telephone service or
Mr. Rubin between the hours of 1:30 and 4 p.m. Eastern time, Monday through
Thursday on (202) 622-6074/6075 or (202) 622-6214, respectively. For exempt
organizations matters, please contact Mr. Flavin at (202) 622-7922. These telephone
numbers are not toll-free.

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INDEX
References are to sections in Rev. Proc. 96–5
Additional Information
—procedure for submission..................................................... sections 15.02, 15.05, 15.10
after conference........................................................................ section 13.10
—proposed deletions under §6110............................................................. section 9.05
Chief Counsel
—jurisdiction ............................................................................... section 5.01
Conferences
—offered..................................................................... sections 10.02, 13.01, 13.09
exceptions................................................................ sections 10.06, 11.04, 15.12
—scheduling.................................................................................. section 13
request to limit retroactivity................................................. sections 13.07, 13.08, 18.05
telephone conferences................................................................... section 13.11
Definition—technical advice......................................................................... section 3
Extension of Time
—to appeal decision not to request technical advice............................................ section 11.02
—to disagree with statement of facts................................................... sections 10.03, 10.04
—to schedule conference............................................................. sections 13.03, 13.04
—to submit additional information..................................................... sections 13.10, 15.10
Farmers’ Cooperatives..................................................................... sections 4.02, 5.01
Letter Ruling.................................................................................. section 17.06
Mandatory Technical Advice............................................................... sections 4.04, 7.01
Perjury Statement..................................................................... sections 13.10, 15.10
Power of Attorney.............................................................................. section 9.08
Public Disclosure under §6110
—deletion statement required................................................................. section 9.05
exception when §6104 applies............................................................ section 9.04
failure to submit........................................................................ section 10.05
—notice of intention to disclose.............................................................. section 16.03
protesting deletions not made...................................................... sections 15.12, 16.04
Representatives........................................................................ sections 13.08, 15.10
Retroactive Effect
—in general.......................................................................... sections 17.02—.06
on letter ruling......................................................................... section 17.06

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—request to limit retroactivity.................................................................. section 18
employee plans determination letters...................................................... section 18.07
exempt organization matters.............................................................. section 18.08
format of request................................................................ sections 18.03, 18.04
scheduling conference...................................................... sections 13.07, 13.09, 18.06
Revenue Rulings
—effect on continuing transaction............................................................. section 17.04
request to limit retroactivity........................................................ sections 18.01—.03
Section 301.9100–1 Relief........................................................................ section 6
Status of Technical Advice Request
—to key district or appeals office........................................................... section 14.02
—to taxpayer............................................................................... section 14.01
Where to Send
—additional information..................................................................... section 15.11
—technical advice request from appeals office................................................... section 9.06
—technical advice from key district office...................................................... section 9.06
Withdrawal of Technical Advice Request............................................................ section 12

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26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 96–6
TABLE OF CONTENTS
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
p. 154.01Purpose of revenue procedure
.02Organization of revenue procedure
SECTION 2. WHAT CHANGES
HAVE BEEN MADE TO THIS
PROCEDURE?
p. 154.01In general
.02Rev. Proc. 93–39 as modified by Rev. Proc. 94–37 is superseded by
this procedure
.03New section describing scope of determination letters added
.04Application forms revised
.05New Schedule Q (Form 5300), Nondiscrimination Requirements
.06Service will accept applications filed under prior procedures for limited
time
.07Rev. Proc. 81–19 is superseded by this procedure
PART I. PROCEDURES FOR
DETERMINATION LETTER
REQUESTS
SECTION 3. ON WHAT ISSUES
MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER
THIS PROCEDURE?
p. 155.01Types of requests
.02Areas in which determination letters will not be issued
.03 GATT
SECTION 4. ON WHAT ISSUES
MUST WRITTEN GUIDANCE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
p. 157.01Employee Plans and Exempt Organizations
.02Chief Counsel’s revenue procedure
SECTION 5. WHAT IS THE
GENERAL SCOPE OF A
DETERMINATION LETTER?
p. 158.01Scope
.02All form and certain non-form requirements generally reviewed
.03Nondiscrimination in amount requirement
.04Average benefit test requirement
.05Nondiscriminatory current availability requirement
.06Effective availability requirement
.07Other limits on scope of determination letter
.08Good faith
SECTION 6. WHAT IS THE
GENERAL PROCEDURE FOR
REQUESTING DETERMINATION
LETTERS?
p. 159.01Qualified trusteed plans
.02Qualified nontrusteed annuity plans
.03Complete information required
.04Complete copy of plan and trust required
.05Section 9 of Rev. Proc. 96–4 applies
.06Separate application required for each single §414(l) plan
.07Schedule Q
.08Prior letters
.09User fees
.10Interested party notification and comment
.11Contrary authority must be distinguished
.12Employer/employee relationship
.13Incomplete applications returned

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.14Effect of failure to disclose material fact
.15Data requirements
.16Where to file request
.17Withdrawal of requests
SECTION 7. INITIAL
QUALIFICATION, ETC.
p. 162.01Scope
.02Forms
.03Application for amendments must include copy of plan
.04Restatements may be required
.05Controlled groups, etc.
SECTION 8. MASTER &
PROTOTYPE PLANS; REGIONAL
PROTOTYPE PLANS
p. 163.01Scope
.02Determination letter may be necessary for reliance
.03Forms
.04Required information
.05Special rules for standardized plans
.06Amended plan is treated as an individually designed plan
.07Requests made prior to the issuance of opinion or notification letter
SECTION 9. VOLUME SUBMITTER
PLANS
p. 164.01Scope
.02Definition of volume submitter plan
.03Purpose of volume submitter program
.04Description of volume submitter program
.05User fees
.06Advisory letter for specimen plan
.07Determination letter for adoption of volume submitter plan
SECTION 10. MULTIPLE
EMPLOYER PLANS
p. 165.01Scope
.02Form 5300 and Schedule Q
.03Multiple employer M&P plans
.04Where to file
.05Preliminary approval for certain multiple employer M&P plans
.06Determination letter sent to each employer
.07Addition of employers
SECTION 11. MINOR AMENDMENT
OF PREVIOUSLY APPROVED PLAN
p. 166.01Scope
.02Form 6406
.03Additional information
.04Minor amendment procedures may not be used for complex
amendments
.05Key district office has discretion to determine whether use of minor
amendment procedure is appropriate
SECTION 12. TERMINATION
OR DISCONTINUANCE OF
CONTRIBUTIONS; NOTICE
OF MERGERS, CONSOLIDATIONS,
ETC.
p. 167.01Scope
.02Forms
.03Required demonstration of nondiscrimination requirements
.04Compliance with Title IV of ERISA
.05Termination prior to time for amending for change in law
SECTION 13. FOREIGN SITUS
TRUSTS, FOREIGN EMPLOYERS
p. 168.01Scope
.02Forms
.03Where to file
.04Foreign employers

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SECTION 14. GROUP TRUSTSp. 168.01Scope
.02Required information
SECTION 15. AFFILIATED SERVICE
GROUPS; LEASED EMPLOYEES
p. 168.01Scope
.02Types of requests under §414(m) and §414(n)
.03Employer must request the determination under §414(m) or §414(n)
.04Forms
.05Employer is responsible for determining status under §414(m) and
§ 414(n)
.06Omission of material fact
.07Service will indicate whether §414(m) or §414(n) was considered
.08M&P plans; regional prototype plans
.09Required information
SECTION 16. WAIVER OF
MINIMUM FUNDING
p. 170.01Scope
.02Applicability of Rev. Proc. 94–41
.03Waiver and determination letter request submitted to national office
.04Handling of the request
.05Interested party notice and comment
.06When waiver request should be submitted
SECTION 17. SECTION 420
DETERMINATION LETTERS
p. 172.01Scope
.02Required information
PART II. INTERESTED PARTY
NOTICE AND COMMENT
SECTION 18. WHAT RIGHTS
TO NOTICE AND COMMENT DO
INTERESTED PARTIES HAVE?
p. 173.01Rights of interested parties
.02Comments by interested parties
.03Requests for DOL to submit comments
.04Right to comment if DOL declines to comment
.05Confidentiality of comments
.06Availability of comments
.07When comments are deemed made
SECTION 19. WHAT ARE THE
GENERAL RULES FOR NOTICE
TO INTERESTED PARTIES?
p. 175.01Notice to interested parties
.02Time when notice must be given
.03Content of notice
.04Procedures for making information available to interested parties
.05Information to be available to interested parties
.06Special rules if there are less than 26 participants
.07Information described in §6104(a)(1)(D) should not be included
.08Availability of additional information to interested parties
.09Availability of notice to interested parties
PART III. PROCESSING
DETERMINATION LETTER
REQUESTS
SECTION 20. HOW DOES THE
SERVICE HANDLE DETERMINATION
LETTER REQUESTS?
p. 177.01Oral advice
.02Conferences
.03Determination letter based solely on administrative record
.04Notice of final determination
.05Issuance of the notice of final determination
.06Key district offices

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SECTION 21. EXHAUSTION OF
ADMINISTRATIVE REMEDIES
p. 179.01In general
.02Steps for exhausting administrative remedies
.03Applicant’s request for §7805(b) relief
.04Interested parties
.05Deemed exhaustion of administrative remedies
.06Service must act on appeal
.07Service must act on §7805(b) request
.08Effect of technical advice request
SECTION 22. WHAT EFFECT
WILL AN EMPLOYEE PLANS
DETERMINATION LETTER HAVE?
p. 180.01Scope of reliance on determination letter
.02Effect of determination letter on minor plan amendment
.03Sections 12 and 13 of Rev. Proc. 96–4 applicable
.04Effect of subsequent publication of revenue ruling, etc.
.05Determination letter does not apply to taxability issues
SECTION 23. EFFECT ON OTHER
REVENUE PROCEDURES
p. 181.01Superseded revenue procedure
.02Superseded revenue procedures
SECTION 24. EFFECTIVE DATEp. 181
EXHIBIT
APPENDIX §420 determination
letters
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
Purpose of revenue procedure.01This revenue procedure sets forth the procedures of the various offices of the
Internal Revenue Service for issuing determination letters on the qualified status of
pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans
(ESOPs) under §§401, 403(a), 409 and 4975(e)(7) of the Internal Revenue Code of
1986, and the status for exemption of any related trusts or custodial accounts under
§ 501(a).
Organization of revenue
procedure
.02Part I of this revenue procedure contains instructions for requesting
determination letters for various types of plans and transactions. Part II contains
procedures for providing notice to interested parties and for interested parties to
comment on determination letter requests. Part III contains procedures concerning the
processing of determination letter requests and describes the effect of a determination
letter.
SECTION 2. WHAT CHANGES
HAVE BEEN MADE TO THIS
PROCEDURE?
In general.01This revenue procedure is a general update of Rev. Proc. 95–6, 1995–1 C.B.
452, which contains the Service’s general procedures for employee plans
determination letter requests. Most of the changes to Rev. Proc. 95–6 involve minor
revisions, such as updating citations to other revenue procedures.
Rev. Proc. 93–39 as modified by
Rev. Proc. 94–37 is superseded
by this procedure
.02Rev. Proc. 93–39, 1993–2 C.B. 513, as modified by Rev. Proc. 94–37, 1994–1
C.B. 683, sets forth additional procedures regarding applications for determination
letters on the qualified status of pension, profit-sharing, and annuity plans under
§ 401(a) or 403(a) of the Code filed with the Service on or after October 12, 1993.
The procedures in Rev. Proc. 93–39 reflect changes to the plan qualification require-
ments made by the Tax Reform Act of 1986 (TRA ’86), Pub. L. 99–514, as well as
the final nondiscrimination regulations under §401(a)(4) that were published in 1993.
The procedures in Rev. Proc. 93–39, as modified by Rev. Proc. 94–37, have now been
incorporated into this revenue procedure or in the revised determination letter applica-
tion forms, as described below. Accordingly, this revenue procedure supersedes Rev.

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Proc. 93–39, with the exception of section 12 (regarding the time by which plans must
be amended to comply with the requirements of §401(a)(31)) and section 13
(regarding extended reliance).
New section describing scope of
determination letter added
.03Section 5, which describes the scope of determination letters, particularly with
respect to the nondiscrimination requirements, has been added.
Application forms revised.04The Service is revising the forms that are used to apply for determination
letters. The following forms are being revised:
1Form 5300, Application for Determination for Employee Benefit Plan;
2Form 5303, Application for Determination for Collectively Bargained Plan;
3Form 5307, Application for Determination for Adopters of Master or Prototype,
Regional Prototype or Volume Submitter Plans;
4Form 5310, Application for Determination for Terminating Plan; and
5Form 6406, Short Form Application for Determination for Minor Amendment of
Employee Benefit Plan.
New Schedule Q (Form 5300),
nondiscrimination requirements
.05The Service is also issuing new Schedule Q (Form 5300), Nondiscrimination
Requirements. Schedule Q (Form 5300) will take the place of the attachment that was
required by section 5.03 of Rev. Proc. 93–39 to be included with determination letter
applications. (A model attachment was included in Appendix A of Rev. Proc. 93–39.)
This revenue procedure requires Schedule Q (Form 5300) to be filed with all
determination letter applications, other than applications filed on Form 6406, Short
Form Application for Determination for Minor Amendment of Employee Benefit Plan;
applications relating to the qualified status of group trusts; and applications relating
solely to the requirements of §420 of the Code, regarding the transfer of assets in a
defined benefit plan to a health benefit account described in §401(h).
Service will accept applications
filed under prior procedures for
limited time
.06The Service will continue to accept determination letter applications that are
filed on Form 5300 series forms with revision dates before January 1996, and that do
not include Schedule Q (Form 5300), through the 120th day following the date of the
Service’s announcement in the Internal Revenue Bulletin of the availability of the
revised forms, provided such applications would satisfy the requirements of Rev. Proc.
93–39.
Rev. Proc. 81–19 is superseded
by this procedure
.07Rev. Proc. 81–19, 1981–1 C.B. 689, provides optional procedures for employers
to obtain determination letters on certain amendments to plans for which favorable
determination letters have been issued. Rev. Proc. 81–19 provides that determination
letters that express an opinion only as to whether amendments, in and of themselves,
affect a plan’s qualification may be requested on either Form 6406 or on Form 5300.
It also provides that a determination letter on the qualification of the entire plan, as
amended, may be requested only by filing Form 5300 with a copy of the plan that
includes all plan amendments made to the date of the application. This revenue
procedure provides that ‘‘amendment only’’ letters will be issued only for applications
filed on Form 6406. (See sections 7, 11, and 22.) Accordingly, Rev. Proc. 81–19 is
superseded.
PART I. PROCEDURES FOR
DETERMINATION LETTER
REQUESTS
SECTION 3. ON WHAT ISSUES
MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER THIS
PROCEDURE?
Types of requests.01Determination letters may be requested on completed and proposed transactions
as set forth in the table below:

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TYPE OF REQUESTFORMS
REV. PROC.
SECTION
1.Initial Qualification, etc.
a.Individually Designed Plans (other than collectively bargained)5300,
Schedule Q
7
b.ESOPs5300, 5309,
Schedule Q
7
c.Collectively Bargained Plans5303,
Schedule Q,
7
d.Adoption of Master & Prototype or Regional prototype plans (including
a collectively bargained plan if no non-collectively bargained
employees are in the plan)
5307,
Schedule Q
8
e.Volume Submitter Plans (including a collectively bargained plan if no
non-collectively bargained employees are in the plan)
5307,
Schedule Q
9
f.Multiple Employer Plans5300,
Schedule Q
10
g.Foreign Situs Trusts5300,
Schedule Q
13
h.Group TrustsCover letter14
i.Section 420 determination lettersCover letter,
Checklist,
Appendix
17
2.Minor Amendments640611
3.Termination
a.In general5310, 6088,
Schedule Q
12
b.Multiemployer plan covered by PBGC insurance5303, 6088,
Schedule Q
12
Note: Form 5310–A, Notice of Plan Merger, Consolidation, Spinoff or Transfer of Plan Assets or Liabilities,
Notice of Qualified Separate Lines of Business, generally must be filed not less than 30 days before the merger,
consolidation or transfer of assets and liabilities, the filing of Form 5310–A will not result in the issuance of a
determination letter.
4.Special Procedures
a.Affiliated Service Group Status (§414(m)), Leased Employees
(§414(n))
5300,
Schedule A
15
b.Minimum Funding Waiver5300,
Schedule Q
16
Areas in which determination
letters will not be issued
.02Determination letters issued in accordance with this revenue procedure do not
include determinations on the following issues within the jurisdiction of the Assistant
Commissioner (Employee Plans and Exempt Organizations):
(1)Issues involving §§72, 79, 105, 125, 127, 129, 402, 403 (other than 403(a)),
404, 409(1), 409(m), 412, 457, 511 through 515, and 4975 (other than 4975(e)(7)),
unless these determination letters are authorized under section 7 of Rev. Proc. 96–4,
page 94, this Bulletin.
(2)Plans or plan amendments for which automatic approval is granted pursuant to
section 8.05 below.
(3)Plan amendments described below (these amendments will, to the extent
provided, be deemed not to alter the qualified status of a plan under §401(a)).
(a)An amendment solely to permit a trust forming part of a plan to participate in a
pooled fund arrangement described in Rev. Rul. 81–100, 1981–1 C.B. 326;

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(b)An amendment that merely adjusts the maximum limitations under §415 to
reflect annual cost-of-living increases, other than an amendment that adds an
automatic cost-of-living adjustment provision to the plan; and
(c)An amendment solely to include language pursuant to §403(c)(2) of Title I of
the Employee Retirement Income Security Act of 1974 (ERISA) concerning the
reversion of employer contributions made as a result of mistake of fact.
(4)This section applies to determination letter requests with respect to plans that
combine an ESOP (as defined in §4975(e)(7) of the Code) with retiree medical
benefit features described in §401(h) (‘‘HSOPs’’).
(a)In general, determination letters will not be issued with respect to plans that
combine an ESOP with an HSOP with respect to:
(i)whether the requirements of §4975(e)(7) are satisfied;
(ii)whether the requirements of §401(h) are satisfied; or
(iii)whether the combination of an ESOP with an HSOP in a plan adversely affects
its qualification under §401(a).
(b)A plan is considered to combine an ESOP with an HSOP if it contains ESOP
provisions and §401(h) provisions.
(c)However, an arrangement will not be considered covered by section 3.02(4) of
this revenue procedure if, under the provisions of the plan, the following conditions
are satisfied:
(i)No individual accounts are maintained in the §401(h) account (except as
required by §401(h)(6));
(ii)No employer securities are held in the §401(h) account;
(iii)The §401(h) account does not contain the proceeds (directly or otherwise) of
an exempt loan as defined in §54.4975–7(b)(1)(iii) of the Pension Excise Tax
Regulations; and
(iv)The amount of actual contributions to provide §401(h) benefits (when added
to actual contributions for life insurance protection under the plan) does not exceed 25
percent of the sum of: (1) the amount of cash contributions actually allocated to
participants’ accounts in the plan and (2) the amount of cash contributions used to
repay principal with respect to the exempt loan, both determined on an aggregate basis
since the inception of the §401(h) arrangement.
(5)Transactions which include transfers of excess assets from ongoing defined
benefit plans to defined contribution plans (including the allocation of excess assets in
an ongoing defined benefit plan to separate accounts that are established in that plan
creating a plan described in §414(k)) or transfers in connection with the amendment
of a defined benefit plan to create a floor offset arrangement with a defined
contribution plan (including the establishment of the separate accounts used as offsets
in the plan that had been solely a defined benefit plan resulting in a plan described in
§ 414(k)).
GATT.03Until further notice is given, determination letters, other than those issued for
terminating plans, will not include consideration by the Service of any amendments to
the qualification requirements made by the Uruguay Round Agreements Act, Pub. L.
103–465 (GATT). Until such notice is given, plans, other than terminating plans, that
include provisions that reflect the GATT amendments to the qualification requirements
will not be subject to adverse determination letters by reason of the inclusion of such
provisions. However, favorable letters issued for plans, other than terminating plans,
may not be relied upon with respect to whether such provisions satisfy the
qualification requirements as amended by GATT.
SECTION 4. ON WHAT ISSUES
MUST WRITTEN GUIDANCE BE
REQUESTED UNDER DIFFERENT
PROCEDURES?
Employee Plans and Exempt
Organizations
.01Other procedures for obtaining rulings, determination letters, opinion letters,
etc., on matters within the jurisdiction of the Assistant Commissioner (Employee Plans
and Exempt Organizations) are contained in the following revenue procedures:
(1)National office letter rulings, information letters, etc.: See Rev. Proc. 96–4.

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(2)Master and Prototype (M&P) plans: See Rev. Proc. 89–9, 1989–1 C.B. 780, as
modified by Rev. Proc. 90–21, 1990–1 C.B. 499, sections 8.03—8.08 of Rev. Proc.
91–66, Rev. Proc. 92–41, 1992–1 C.B. 870, and Rev. Proc. 93–10, 1993–1 C.B. 476.
(3)Regional prototype plans: See Rev. Proc. 89–13, 1989–1 C.B. 801, as modified
by Rev. Proc. 90–21, 1990–1 C.B. 499, sections 8.03—8.08 of Rev. Proc. 91–66, Rev.
Proc. 92–41, and Rev. Proc. 93–10.
(4)Technical advice requests: See Rev. Proc. 96–5, page 129, this Bulletin.
Chief Counsel’s revenue
procedure
.02For the procedures for obtaining letter rulings, determination letters, etc., on
matters within the jurisdiction of the Associate Chief Counsel (Domestic), the
Associate Chief Counsel (Employee Benefits and Exempt Organizations), and the
Associate Chief Counsel (International), see Rev. Proc. 96–1, page 8, this Bulletin.
SECTION 5. WHAT IS THE
GENERAL SCOPE OF A
DETERMINATION LETTER?
Scope.01This section delineates, generally, the scope of an employee plan determination
letter. It identifies certain qualification requirements, relating to nondiscrimination,
that are considered by the Service in its review of a plan only at the election of the
applicant. This section also identifies certain qualification requirements that are not
considered by the Service in its review of a plan and with respect to which
determination letters do not provide reliance. This section applies to all determination
letters other than letters issued in response to an application filed on Form 6406, Short
Form Application for Determination for Minor Amendment of Employee Benefit Plan;
letters relating to the qualified status of group trusts; and letters relating solely to the
requirements of §420, regarding the transfer of assets in a defined benefit plan to a
health benefit account described in §401(h). For additional information pertaining to
the scope of reliance on a determination letter, see section 22 of this revenue
procedure.
All form and certain non-form
requirements generally reviewed
.02In general, employee plans are reviewed by the Service for compliance with the
form requirements (that is, those plan provisions that are required as a condition of
qualification under §401(a)). In addition, certain non-form qualification requirements,
including the minimum participation requirements of §401(a)(26), are considered by
the Service in its review of a plan. As described below, certain other
nondiscrimination requirements are not considered unless the applicant specifically
requests that they be considered.
Nondiscrimination in amount
requirement
.03Unless the applicant elects otherwise, a plan that is not intended to satisfy one
of the design-based safe harbors described in §§1.401(a)(4)–2(b)(2), 1.401(a)(4)–
3(b)(3), 1.401(a)(4)–3(b)(4)(i)(C)(1), 1.401(a)(4)–3(b)(4)(i)(C)(2), 1.401(a)(4)–3(b)(5),
1.401(a)(4)–8(b)(3), or 1.401(a)(4)–8(c)(3)(iii)(B) of the Income Tax Regulations
(herein referred to as the ‘‘design-based safe harbors’’) will not be reviewed for (and
a determination letter may not be relied on with respect to) the nondiscrimination in
amount of contributions or benefits requirement of §1.401(a)(4)–1(b)(2).
Average benefit test requirement.04Unless the applicant elects otherwise, a plan that does not satisfy the ratio
percentage test of §410(b)(1) and the regulations thereunder will not be reviewed for
(and determination letters may not be relied on with respect to) the average benefit
test of §410(b)(2) and the regulations thereunder.
Nondiscriminatory current
availability requirement
.05Any determination letter that expresses an opinion that the plan satisfies the
minimum coverage requirements of §410(b) also will express an opinion that the plan
satisfies the nondiscriminatory current availability requirements of §1.401(a)(4)–4(b)
with respect to those benefits, rights, and features that are currently available (within
the meaning of §1.401(a)(4)–4(b)(2)) to all employees in the plan’s coverage group.
The plan’s coverage group consists of those employees who are treated as currently
benefiting under the plan (within the meaning of §1.410(b)–3(a)) for purposes of
demonstrating that the plan satisfies the minimum coverage requirements of §410(b).
Applications will not be reviewed for (and determination letters may not be relied on
with respect to) whether the plan satisfies the requirements of §1.401(a)(4)–4(b) with
respect to any benefit, right, or feature other than the ones described above, except
those that are specified by the applicant and for which the applicant has provided
information relevant to the determination.

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Effective availability requirement.06In no event will any plan be reviewed to determine (and determination letters
may not be relied on with respect to) whether any benefit, right, or feature under the
plan satisfies the effective availability requirement of §1.401(a)(4)–4(c).
Other limits on scope of
determination letter
.07Determination letters may generally be relied on with respect to whether the
timing of a plan amendment (or series of amendments) satisfies the nondiscrimination
requirements of §1.401(a)(4)-5(a) of the regulations, unless the plan amendment is
part of a pattern of amendments that significantly discriminates in favor of highly
compensated employees. A favorable determination letter does not provide reliance for
purposes of §404 and §412 with respect to whether an interest rate (or any other
actuarial assumption) is reasonable. Furthermore, a favorable determination letter will
not constitute a determination with respect to the use of the substantiation guidelines
contained in Rev. Proc. 93–42; e.g., a determination letter will not consider whether
data submitted with an application is substantiation quality. Lastly, a favorable
determination letter will not constitute a determination with respect to whether any
requirements of §414(r), relating to whether an employer is operating qualified
separate lines of business, are satisfied. However, if an employer is relying on
§ 414(r) to satisfy the minimum coverage or minimum participation requirements, a
determination letter will take into account whether the plan satisfies the
nondiscriminatory classification test of §410(b)(5)(B), and, if the requirements of
§ 410(b) or §401(a)(26) are to be applied on an employer-wide basis under the
special rules for employer-wide plans, a determination letter will take into account
whether the requirements of the applicable special rule set forth in §1.414(r)–
1(c)(2)(ii) or §1.414(r)–1(c)(3)(ii) are met.
Good faith.08Generally, the nondiscrimination regulations under §401(a)(4) and certain
related sections of the Code apply only to plan years beginning on or after January 1,
1994. In the case of plans maintained by tax-exempt organizations (other than
nonelecting church plans described in §410(c)(1)(B)), the regulations apply only to
plan years beginning on or after January 1, 1997. In the case of nonelecting church
plans, the regulations apply only to plan years beginning on or after January 1, 1999.
A special extended effective date also applies to governmental plans. For plan years
beginning before the regulations under §401(a)(4) are effective for the plan, a plan
(other than a governmental plan) must be operated in accordance with a reasonable,
good faith interpretation of §401(a)(4) and certain related sections of the Code. A
determination letter may not be relied on as to whether a plan has been operated in
accordance with a reasonable, good faith interpretation or whether plan provisions
constitute such an interpretation unless the plan has been amended to comply with the
regulations retroactively to the 1989 plan year (or, if a later effective date under the
TRA ’86 is applicable, such later year). Furthermore, the issuance of a favorable
determination letter will not preclude an adverse effect on the qualification of a plan
resulting from a failure to operate the plan in accordance with a reasonable, good faith
interpretation of §401(a)(4) or related sections of the Code.
SECTION 6. WHAT IS THE
GENERAL PROCEDURE FOR
REQUESTING DETERMINATION
LETTERS?
This section contains procedures that are generally applicable to all determination
letter requests. Additional procedures for specific requests are contained in sections 7
through 17.
Qualified trusteed plans.01A trust created or organized in the United States and forming part of a pension,
profit-sharing, stock bonus or annuity plan of an employer for the exclusive benefit of
its employees or their beneficiaries that meets the requirements of §401 is a qualified
trust and is exempt from federal income tax under §501(a) unless the exemption is
denied under §502, relating to feeder organizations, or §503, relating to prohibited
transactions, if, in the latter case, the plan is one described in §503(a)(1)(B).
Qualified nontrusteed annuity
plans
.02A nontrusteed annuity plan that meets the applicable requirements of §401 of
the Code and other additional requirements as provided under §403(a) and
§ 404(a)(2), (relating to deductions of employer contributions for the purchase of
retirement annuities), qualifies for the special tax treatment under §404(a)(2), and the
other sections of the Code, if the additional provisions of such other sections are also
met.
Complete information required.03An applicant requesting a determination letter must file the material required by
this revenue procedure with the appropriate key district director. The filing of the
application, when accompanied by all information and documents required by this

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revenue procedure, will generally serve to provide the Service with the information
required to make the requested determination. However, in making the determination,
the Service may require the submission of additional information. Information
submitted to the Service in connection with an application for determination may be
subject to public inspection to the extent provided by §6104.
Complete copy of plan and trust
instrument required
.04Except in the case of applications involving master and prototype plans filed on
Form 5307, or minor amendments described in section 11, a complete copy of the
plan and trust instrument is required to be included with the determination letter
application. See sections 7.03 and 7.04 for what must be included with applications
involving plan amendments that are not minor amendments.
Section 9 of Rev. Proc. 96–4
applies
.05Section 9 of Rev. Proc. 96–4 is generally applicable to requests for
determination letters under this revenue procedure.
Separate application for each
single §414(l) plan
.06A separate application is required for each single plan within the meaning of
§ 414(l). This requirement does not pertain to applications regarding the qualified
status of group trusts.
Schedule Q.07Schedule Q (Form 5300) must be filed with all determination letter applica-
tions, other than applications filed on Form 6406, applications relating to the qualified
status of group trusts, and applications relating solely to the requirements of §420.
The applicant must indicate on Schedule Q whether a determination of any of the re-
quirements referred to in sections 5.03 through 5.05 is requested, and must include
with the application form the material and demonstrations called for in the instructions
to Schedule Q.
Prior letters.08If the plan has received a favorable determination letter in the past, the
application must include a copy of the latest determination letter, if available. If the
letter is not available, an explanation must be included with the application.
User fees.09The appropriate user fee must be paid according to the procedures of Rev. Proc.
96–8. Form 8717, User Fee for Employee Plan Determination Letter Request, should
accompany each determination letter request submitted to a key district office.
Interested party notification and
comment
.10Before filing an application, the applicant requesting a determination letter must
satisfy the requirements of §3001(a) of ERISA, and §7476(b)(2) of the Code and the
regulations thereunder, which provide that an applicant requesting a determination letter
on the qualified status of certain retirement plans must notify interested parties of such
application. The general rules of the Service with respect to notifying interested parties
of requests for determination letters relating to the qualification of plans involving
§§401 and 403(a) are set out below in sections 18 and 19 of this revenue procedure.
Contrary authority must be
distinguished
.11If the application for determination involves an issue where contrary authorities
exist, failure to disclose or distinguish such significant contrary authorities may result
in requests for additional information, which will delay action on the application.
Employer/employee relationship.12When, in connection with an application for a determination on the qualifica-
tion of the plan, it is necessary to determine whether an employer-employee relation-
ship exists, the key district director will make such determinations. In such cases, the
application with respect to the qualification of the plan should be filed in accordance
with the provisions of this revenue procedure, contain the information and documents
in the instructions to the application, and be accompanied by a completed Form SS-8,
Information for Use in Determining whether a Worker is an Employee for Federal
Employment Taxes and Income Tax Withholding, and any information and copies of
documents the organization deems appropriate to establish its status. The Service may,
in addition, require further information that it considers necessary to determine the
employment status of the individuals involved or the qualification of the plan. After
the employer-employee relationships have been determined, the key district director
may issue a determination letter as to the qualification of the plan.
Incomplete applications returned.13If an applicant requesting a determination letter does not comply with all the
required provisions of this revenue procedure, the key district director, in his or her
discretion, may return the application and point out to the applicant those provisions
which have not been met. The request will also be returned pursuant to Rev. Proc. 96–
8 if the correct user fee is not attached. If such a request is returned to the applicant,
the 270-day period described in §7476(b)(3) will not begin to run until such time as
the provisions of this section have been satisfied.

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Effect of failure to disclose
material fact
.14The Service may determine, based on the application form, the extent of review
of the plan document. A failure to disclose a material fact or misrepresentation of a
material fact on the application may adversely affect the reliance which would
otherwise be obtained through issuance by the Service of a favorable determination
letter. Similarly, failure to accurately provide any of the information called for on any
form required by this revenue procedure may result in no reliance.
Data requirements.15The applicant is responsible for the accuracy of any factual representations and
conclusions contained in the application. In some circumstances, applicants may not
be able to use precise data in preparing demonstrations or schedules that may be
required by Schedule Q. Therefore, the use of estimated data in these demonstrations
and schedules is not prohibited. In addition, the data used may be for a prior plan
year, provided the following conditions are satisfied: (1) the data is the most recent
data available, (2) there is no misstatement or omission of material fact with respect to
such prior year’s data, (3) there has been no material change in the facts (including a
change in the benefits provided under the plan and employee demographics) since
such prior plan year, (4) the same data is used throughout the application, (5) the data
is relevant to the operational effect of the plan provisions that are under review, and
(6) the applicant clearly discloses that prior year’s data is being submitted with the
application. The use of estimated or prior year’s data is not a misrepresentation of
material fact. A determination letter that is based on estimated or prior year’s data,
however, may not be relied upon to the extent that such data does not satisfy the
substantiation guidelines in Rev. Proc. 93–42.
Where to file request.16Requests for determination letters are to be addressed to the key district director
specified below, except as indicated.
(1)In the case of a plan of a single employer, the request is to be addressed to the
key district director for the district in which the employer’s principal place of business
is located.
(2)In the case of a multiemployer plan established or proposed by contributing
employers with principal places of business located within the jurisdiction of more
than one key district director, as an alternative to (1) above, the request may be
addressed to the key district director for the district in which the trustee’s principal
place of business is located. If the plan has more than one trustee, the request may be
addressed to the key district director for the district where the trustees usually meet.
(3)In the case of a plan maintained by more than one employer, the applicant or
plan administrator must file the appropriate form with the key district director for the
key district in which the principal place of business of the plan sponsor is located.
This means the principal place of business of the association, committee, joint board
of trustees or other similar group, or representatives of those who establish or
maintain the plan.
(4)In the case of related employers described in §414(b), (c), or (m), the request
for any plan maintained by any member of the group must be addressed to the key
district director for the district where the principal place of business for the group of
employers is located.
(5)In the case of a group trust arrangement under Rev. Rul. 81–100, the request on
behalf of the master trust must be addressed to the key district director for the district
where the principal place of business of the trustee is located. Requests on behalf of
the participating trusts and related plans must be addressed as otherwise provided in
this section.
Withdrawal of requests.17The applicant’s request for a determination letter may be withdrawn by a
written request at any time prior to the issuance of a final adverse determination letter.
If an appeal to a proposed adverse determination letter is filed, a request for a
determination letter may be withdrawn at any time prior to the forwarding of the
proposed adverse action to the chief, appeals office. In the case of a withdrawal, the
Service will not issue a determination of any type. A failure to issue a determination
letter as a result of a withdrawal will not be considered a failure of the Secretary or
his delegate to make a determination within the meaning of §7476. However, the
Service may consider the information submitted in connection with the withdrawn
request in a subsequent examination. Generally, the user fee will not be refunded if
the application is withdrawn.

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SECTION 7. INITIAL
QUALIFICATION, ETC.
Scope.01This section contains the procedures for requesting determination letters for
individually designed defined contribution and defined benefit plans including
employee stock ownership plans and collectively bargained plans in the following
circumstances:
(1)Initial qualification.
(2)Amendment (other than minor amendments described in section 11 below for
which Form 6406 is appropriate).
(3)Restatement of plan.
(4)Qualification of a plan in the event of a partial termination.
(5)Change in scope of determination letter. This means that the applicant has
previously received a favorable determination letter for the plan that takes into
account the requirements of the TRA ’86 and now wishes to modify the scope of the
letter, for example, by requesting the Service to review the plan for certain
nondiscrimination requirements that were not within the scope of the earlier letter.
(6)Other circumstances (excluding plan termination) such as a change in the
demographics of the employer or a change in the method of testing the plan that was
used in a demonstration submitted in support of an earlier application.
Forms.02A determination letter request for the items listed in section 7.01 is made by
filing the appropriate form according to the instructions to the form and any prevailing
revenue procedures, notices, and announcements.
(1)Form 5300, Application for Determination for Employee Benefit Plan, must be
filed to request a determination letter for plans other than collectively bargained plans.
(2)Form 5303, Application for Determination for Collectively Bargained Plan,
must be filed by a sponsor of a collectively bargained plan. If there is more than one
plan, a separate Form 5303 must be filed for each plan.
(3)Form 5309, Application for Determination of Employee Stock Ownership Plan,
must be filed as an attachment with a Form 5300 or Form 5303 (if the ESOP is
collectively bargained), in order to request a determination whether the plan is an
ESOP under §409 or §4975(e)(7).
(4)Schedule Q, (Form 5300) Nondiscrimination Requirements, must be filed as an
attachment with Form 5300 and Form 5303.
Application for amendments must
include copy of plan
.03Because a plan amendment, other than a minor amendment described in section
11, may affect other portions of a plan so as to cause plan disqualification, a
determination letter issued on such an amendment to a plan will express an opinion on
the entire plan, as amended. Therefore, the determination letter application must
include a copy of the plan and trust instrument plus all plan amendments made to the
date of the application. The application must also include a statement explaining how
any amendments made since the last determination letter affect the plan or any other
plan maintained by the employer.
Restatements may be required.04A restated plan is required to be submitted if four or more amendments
(excluding amendments making only non-substantive changes) have been made since
the last restated plan was submitted. In addition, the Service may require restatement
of a plan or submission of a working copy of the plan in a restated format when
considered necessary, for example when there have been major changes in law. A
restated plan or a working copy of the plan in a restated format must be submitted for
a plan that has not previously received a determination letter that takes into account
all requirements of the TRA ’86.
Controlled groups, etc..05For a controlled group of corporations as defined in § 414(b), trades or
businesses under common control as defined in §414(c), an affiliated service group
within the meaning of §414(m), and entities utilizing the services of leased
employees within the meaning of §414(n), the coverage items on the application
forms referred to in this revenue procedure must be completed as though the
controlled group, commonly controlled trades or businesses, affiliated service group,
etc., constitutes a single entity. Leased employees within the meaning of §414(n)

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must be included as employees of the recipient entity (except in the case of a safe-
harbor plan described in §414(n)(5)).
SECTION 8. MASTER &
PROTOTYPE PLANS; REGIONAL
PROTOTYPE PLANS
Scope.01This section contains procedures for requesting determination letters relating to
M&P plans or regional prototype plans.
Determination letter may be
necessary for reliance
.02Except as provided in section 8.05, the issuance of a favorable opinion letter or
notification letter for an M&P plan or regional prototype plan does not constitute a
determination that an employer adopting the sponsoring organization or sponsor’s plan
has reliance that the plan is qualified under §401(a). In order to have reliance, an
employer must obtain a favorable determination letter according to this revenue
procedure. In general, determination letters are requested for the employer’s adoption
of an M&P plan or regional prototype plan, or for a change by the employer in the
choice of options offered by the sponsoring organization of an M&P plan or sponsor
of a regional prototype plan.
Forms.03Form 5307, Application for Determination for Adopters of Master or Prototype,
Regional Prototype, or Volume Submitter Plan, must be filed to request a
determination letter for the adoption of an M&P plan or a regional prototype plan.
Schedule Q, (Form 5300) Nondiscrimination Requirements, must be filed as an
attachment to Form 5307. Form 5307 may also be filed by adopters of pre-approved
plans that are single employer collectively bargained plans that benefit only
collectively bargained employees described in §1.410(b)–6(d)(2) and that automat-
ically satisfy the requirements of §1.410(b)–2(b)(7).
Required information.04The determination letter request must include the following:
(1)An adoption agreement showing which elections the employer is making with
respect to the elective provisions contained in the plan;
(2)A copy of the plan’s most recent opinion letter or notification letter;
(3)In the case of a determination letter request for a regional prototype plan, the
application must include a certification by the sponsor that the notification letter has
not been withdrawn and is still in effect with respect to the plan being submitted; and
(4)In the case of a determination letter request for a regional prototype plan that
uses a separate trust or custodial account, a copy of the employer’s trust or custodial
account document.
Special rules for standardized
plans
.05The following procedures apply for an employer’s adoption of an M&P or
regional prototype standardized form plan or paired plan.
(1)An employer adopting a standardized form or paired plan may rely on that
plan’s opinion or notification letter, except as provided in section 8.05(2), (3), and (4)
below, if the following conditions are satisfied:
(a)The sponsoring organization or sponsor of such plan or plans has a currently
valid favorable opinion or notification letter; and
(b)The employer has followed the terms of the plan(s), and the coverage and
contributions or benefits under the plan(s) are not more favorable to highly
compensated employees (as defined in §414(q)) than for other employees.
(2)Except in the case of a combination of paired plans, an employer may not rely
on opinion letters for standardized form plans without obtaining a determination letter
if the employer maintains at any time, or has maintained at any time, another plan,
including a standardized form plan, that was qualified or determined to be qualified
covering some of the same participants. For this purpose, a plan that has been
properly replaced by the adoption of a standardized form plan is not considered
another plan. The plan that has been replaced and the standardized form plan must be
of the same type (e.g., both money purchase pension plans) in order for the employer
to be able to rely on the standardized form plan’s opinion or notification letter without
obtaining a determination letter.

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(3)With respect to M&P plans, a standardized plan sponsored by a trade or
professional organization which is adopted by an employer that is not a bona fide
member of such organization will be considered an individually designed plan unless
the following conditions are satisfied:
(a)The trade or professional organization is exempt from federal income taxation
under §501(c)(6);
(b)The plan is a standardized defined contribution plan;
(c)The trade or professional organization makes the plan available for adoption by
nonmember employers by furnishing it to those of its members that independently
qualify as sponsoring organizations; and
(d)The requirements of section 5.01(2) through 5.01(5) of Rev. Proc. 90–21 are
satisfied.
Amended plan is treated as an
individually designed plan
.06An employer that amends any provision of an M&P plan or regional prototype
plan or its adoption agreement (other than to choose among the options offered by the
sponsoring organization or sponsor if the plan permits or contemplates such options),
or an employer that chooses to discontinue participation in such a plan as amended by
its sponsoring organization or sponsor and does not substitute another approved plan
referred to in section 8 is considered to have adopted an individually designed plan.
The requirements stated in this revenue procedure relating to the issuance of
determination letters for individually designed plans will then apply to such plan.
Requests made prior to the
issuance of opinion or
notification letter
.07An application submitted by an employer with respect to an M&P plan or
regional prototype plan will be treated as an application for an individually designed
plan if it is submitted prior to the time the M&P plan or regional prototype plan is
approved.
SECTION 9. VOLUME SUBMITTER
PLANS
Scope.01This section contains procedures for requesting advisory letters and determina-
tion letters for volume submitter plans.
Definition of volume submitter
plan
.02A volume submitter plan is a profit-sharing plan (including a §401(k) plan), a
money purchase pension plan or a defined benefit plan, the form of which meets
certain criteria established by an individual key district office and which is submitted
pursuant to procedures established by the key district office for filing requests for
volume submitter advisory letters (with respect to the specimen plan) and requests for
determination letters (with respect to the adoption of an approved specimen plan). The
Service will not accept volume submitter requests with respect to ESOPs, stock bonus
plans, or cross-tested defined contribution plans (other than target benefit plans that
satisfy the safe harbor in §1.401(a)(4)–8(b)(3)).
Purpose of volume submitter
program
.03The volume submitter program enables key district offices to expedite the
issuance of determination letters in response to applications for approval of
individually designed plans. The program is administered locally by each key district
office.
Description of volume submitter
program
.04Under the volume submitter program, a practitioner who qualifies may request
the Service to issue an advisory letter regarding a volume submitter specimen plan. A
specimen plan is a sample plan of a practitioner (rather than the actual plan of an
employer) that contains provisions which are identical or substantially similar to the
provisions in plans that such practitioner’s clients have adopted or are expected to
adopt. Once the Service has approved the specimen plan, the practitioner will be able
to file determination letter requests on behalf of employers adopting substantially
similar plans.
User fees.05Rev. Proc. 96–8 provides reduced user fees for requests under the volume
submitter program if certain requirements are satisfied. For adopting employers to be
entitled to file a request with the lower fees, the volume submitter practitioner must
certify at the time of filing the specimen plan that at least 30 employers within any
two regions of the Service are expected to adopt plans that are substantially similar in
form to the specimen plan. Also, the volume submitter practitioner must be a
representative of the employer when the employer’s determination letter application is
filed. Although the volume submitter is not required to submit a list of adopting
employers, the Service reserves the right to request such a list.

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Advisory letter for specimen plan.06With respect to advisory letters for volume submitter specimen plans:
(1)A request for approval of a volume submitter specimen plan must be submitted
to the key district office in which the practitioner has its principal place of business.
The request must include the following:
(a)A copy of the specimen plan and any related specimen trust instrument;
(b)A cover letter requesting approval that includes the certification described in
section 9.05 above and indicates the type of plan for which approval is being
requested; and
(c)The required user fee submitted with Form 8717, User Fee for Employee Plan
Determination Letter Request.
(2)A practitioner who has received approval of a volume submitter specimen plan
in a key district office must receive separate approval of the plan from each other key
district office in which there are clients adopting substantially similar plans. Once the
practitioner has received approval from the key district office in which the
practitioner’s principal place of business is located, the practitioner may file for
approval of the same specimen plan in other key district offices where there are
employers who will adopt substantially similar plans. If the practitioner certifies at the
time of filing with the second key district office that the specimen plan is identical to
a specimen plan approved by another key district office with respect to that
practitioner and attaches a copy of that office’s advisory letter, then the user fee that
would otherwise be charged for the specimen plan will not be charged.
Determination letter for adoption
of volume submitter plan
.07With respect to determination letters for volume submitter plans:
(1)Form 5307, Application for Determination for Adopters of Master or Prototype,
Regional Prototype, or Volume Submitter Plan, is filed to request a determination
letter on an employer’s adoption of a volume submitter plan, including adopters of
single-employer collectively bargained plans that automatically satisfy the require-
ments of §1.410(b)–2(b)(7).
(2)Schedule Q, (Form 5300) Nondiscrimination Requirements, must be filed as an
attachment to Form 5307.
(3)A copy of the advisory letter for the practitioner’s volume submitter specimen
plan must be submitted with each Form 5307.
(4)The volume submitter practitioner must be the representative of the employer
when the employer’s determination letter application is filed.
(5)All applications submitted by adopters of district approved volume submitter
plans must be accompanied by a copy of the plan and trust instrument and by a
written representation made by the volume submitter which states whether the plan is
word-for-word, and if not, explains how the plan and trust instrument are not word-
for-word identical to the key district approved specimen plan and which describes the
location, nature and effect of each difference from the language of the approved
specimen plan. The extent to which the plan and trust instrument may differ from the
approved specimen plan will be governed by the procedures of the appropriate key
district office.
(6)All applications submitted by adopters of key district approved volume
submitter plans must also be accompanied by any other information or material
required by the key district office.
(7)All applications for plans that have at any time in the past received a favorable
determination letter must submit a copy of the plan’s latest determination letter.
SECTION 10. MULTIPLE
EMPLOYER PLANS
Scope.01This section contains procedures for applications filed with respect to plans
described in §413(c).
Form 5300 and Schedule Q.02An application filed with respect to a multiple employer plan must include a
completed Form 5300 filed on behalf of one employer and a separate Form 5300
completed through line 8 for each other employer maintaining the plan. One Schedule
Q, (Form 5300) Nondiscrimination Requirements, should be filed for the plan. In
accordance with the instructions for Schedule Q, separate coverage and other
information must be submitted for each employer.

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Multiple employer M&P plans.03Certain multiple employer plans have in the past received Service approval as
M&P plans. In the case of such a plan that will continue to use an adoption agreement
format, the application must also include a completed adoption agreement for each
employer maintaining the plan. Regardless of whether an adoption agreement format
continues to be used for such a plan, the rules of §1.414(l)–1 will apply in
determining whether the plan is a single plan for which only one determination letter
will be issued and which requires only one user fee.
Where to file.04The complete application, including all Forms 5300 (and, if applicable,
adoption agreements) for employers maintaining the plan as of the date of the
application, must be filed as one package submission in the key district office where
the association maintaining the plan, the trustees, or the plan administrators have their
principle place of business. The application is to be directed to the attention of the key
district office volume submitter coordinator.
Preliminary approval for certain
multiple employer M&P plans
.05Multiple employer plan applicants who previously received Service approval for
a plan as an M&P plan and who will continue to use an adoption agreement format
are encouraged to request preliminary approval of the provisions of the plan, including
the permitted adoption agreement elections, prior to making the submission described
above. Preliminary approval may be requested by submitting a copy of the plan and
trust instrument, including a blank adoption agreement, and a copy of the latest
opinion letter to the volume submitter coordinator for the key district where the
complete application will be filed, requesting preliminary approval pursuant to this
procedure. The request should not include an application form or user fee. The key
district will notify the applicant in writing if preliminary approval is granted, and the
complete application may then be filed. Adopting employers will not be entitled to
rely on the preliminary approval as to the qualified status of the plan. If the applicant
requests preliminary approval of the plan on or before November 14, 1990, the
Service will treat the TRA ’86 §401(b) remedial amendment period for the plan as
not expiring earlier than the date that is twelve months after the date of the key
district office’s preliminary approval.
Determination letter sent to
each employer
.06The Service will mail a copy of the determination letter issued with respect to
the plan to each employer maintaining the plan.
Addition of employers.07If other employers become participating employers under the plan after a
favorable determination letter has been issued, the employers may not continue to rely
on such favorable determination letter. However, an applicant may request a
determination that the addition of new participating employers to the plan does not
adversely affect the plan’s qualified status by filing a completed Form 5300 for the
plan in the name of the controlling member on the Form 5300 filed pursuant to
section 10.02 above, and a supplemental Form 5300 (and, if applicable, adoption
agreement) for each new participating employer. The Service will send copies of such
a determination only to the applicant and the new participating employers.
SECTION 11. MINOR AMENDMENT
OF PREVIOUSLY APPROVED PLAN
Scope.01 This section contains procedures for requesting determination letters on the
effect of a minor plan amendment.
Form 6406.02Form 6406, Short Form Application for Determination for Minor Amendment
of Employee Benefit Plan, may be filed to request a determination letter on a minor
plan amendment. This form may be used for minor amendments of individually
designed plans (including volume submitter plans) or permitted changes to adoption
agreement elections in master or prototype or regional prototype plans, provided the
changes constitute minor amendments. The Service may also designate other specific
amendments which may be submitted using Form 6406.
Additional information.03 All applications must be accompanied by a copy of the new amendments, a
statement as to how the amendments affect or change the plan or any other plan
maintained by the employer, and a copy of the latest determination letter. In the case
of a master or prototype, regional prototype, or volume submitter plan, a copy of the
opinion, notification, or advisory letter should also be included. A copy of the plan or
trust instrument should not be filed with the Form 6406.

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Minor amendment procedures
may not be used for complex
amendments
.04 Since determination letters issued on minor amendments express an opinion
only as to whether the amendments, in and of themselves, affect the qualification of
employee plans under §401 or 403(a), the minor amendment procedures cannot be
used for complex amendments that may affect other portions of the plan so as to
cause plan disqualification. Thus, the minor amendment procedures may not be used
for an amendment to add a §401(k) or an ESOP provision to a plan, or to restate a
plan. The minor amendment procedures also may not be used to obtain a
determination letter on plan amendments involving plan mergers or consolidations,
transfers of assets or liabilities, or plan terminations (including partial terminations).
In addition, the minor amendment procedures may not be used for an amendment that
involves a significant change to plan benefits or coverage.
Key district office has discretion
to determine whether use of
minor amendment procedures is
appropriate employers
.05The key district office has discretion to determine whether a plan amendment
may be submitted as a minor plan amendment. The key district office may request
additional information, including the filing of a Form 5300 series application if it
determines that the application and the attachments filed under the minor amendment
procedures do not contain sufficient information, or that the Form 6406 is
inappropriate.
SECTION 12. TERMINATION OR
DISCONTINUANCE OF
CONTRIBUTIONS; NOTICE OF
MERGERS, CONSOLIDATIONS, ETC.
Scope.01This section contains procedures for requesting determination letters involving
plan termination or discontinuance of contributions. This section also contains
procedures regarding required notice of merger, consolidation, or transfer of assets or
liabilities.
Forms.02Required Forms
(1)A Form 5310, Application for Determination for Terminating Plan is filed by
plans other than multiemployer plans covered by the insurance program of the Pension
Benefit Guaranty Corporation (PBGC).
(2)Form 5303 is filed in the case of a multiemployer plan covered by PBGC
insurance.
(3)Schedule Q, (Form 5300) Nondiscrimination Requirements, is required to be
filed as an attachment to Form 5310 or Form 5303.
(4)A Form 6088, Distributable Benefits from Employee Pension Benefit Plans, is
also required of a sponsor or plan administrator of a defined benefit plan or an
underfunded defined contribution plan who files only an application for a
determination letter regarding plan termination. For collectively bargained plans, a
Form 6088 is required only if the plan benefits employees who are not collectively
bargained employees within the meaning of §1.410(b)–6(d). A separate Form 6088 is
required for each employer employing such employees.
(5)Form 5310–A Notice of Plan Merger or Consolidation, Spinoff, or Transfer of
Plan Assets or Liabilities; Notice of Qualified Separate Lines of Business, if required,
generally must be filed not later than 30 days before merger, consolidation or transfer
of assets and liabilities. The filing of Form 5310–A will not result in the issuance of a
determination letter.
Required demonstration of
nondiscrimination requirements
.03An applicant requesting a determination letter upon termination may not decline
to elect that the plan be reviewed for the average benefit test (if applicable) or the
nondiscrimination in amount requirement, as otherwise permitted under sections 5.03
and 5.04, unless the following conditions are satisfied:
(1)with respect to the average benefit test, the plan must have received a favorable
determination letter that stated that the plan satisfied the requirements of the test;
(2)with respect to the nondiscrimination in amount requirement, the plan must
have received a favorable determination letter that stated that the plan satisfied the
requirements of either a nondesign-based safe harbor or the general test for
nondiscrimination in amount;
(3)the favorable determination letter was issued during the immediately preceding
three plan years; and

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(4)there has been no material change in the facts (including benefits provided
under the plan and employee demographics) upon which the determination was based.
Compliance with Title IV of
ERISA
.04In the case of plans subject to Title IV of ERISA, a favorable determination
letter issued in connection with a plan’s termination is conditioned on approval that
the termination is a valid termination under Title IV of ERISA. Notification by PBGC
that a plan may not be terminated will be treated as a material change of fact.
Termination prior to time for
amending for change in law
.05A plan that terminates after the effective date of a change in law, but prior to
the date that amendments are otherwise required, must be amended to comply with the
applicable provisions of law from the date on which such provisions become effective
with respect to the plan. Because such a terminated plan would no longer be in
existence by the required amendment date and therefore could not be amended on that
date, such plan must be amended in connection with the plan termination to comply
with those provisions of law that become effective with respect to the plan on or
before the date of plan termination (such amendments include any amendments made
after the date of plan termination that were required in order to obtain a favorable
determination letter). In addition, annuity contracts distributed from such terminated
plans also must meet all the applicable provisions of any change in law. However, see
Notice 88–131, 1988–2 C.B. 546, Rev. Proc. 89–65, 1989–2 C.B. 86, Notice 89–92,
1989–2 C.B. 410, Notice 90–73, 1990–2 C.B. 353, Notice 91–38, 1991–2 C.B. 636,
Notice 92–36, 1992–2 C.B. 634, and Announcement 95–48, 1995–23 I.R.B. 13.
SECTION 13. FOREIGN SITUS
TRUSTS, FOREIGN EMPLOYERS
Scope.01This section contains procedures for requesting determination letters involving
foreign situs trusts and foreign employers.
Forms.02A domestic employer adopting a foreign situs trust may request a determination
letter regarding the qualification of its plan under §401(a) by filing Form 5300, Form
5303 or Form 5307, whichever is appropriate, and Schedule Q.
Where to file.03Such a request should be addressed to the district director for the key district
office in which the employer’s principal place of business is located. If there is a plan
administrator, this material should be filed where the plan administrator is located.
Foreign employers.04In the case of a foreign employer and U.S. possessions, the request should be
addressed to the:
Internal Revenue Service
EP/EO Division
P.O. Box 17288
Baltimore, MD 21203
SECTION 14. GROUP TRUSTS
Scope.01This section provides special procedures for requesting a determination letter on
the qualified status of a group trust under Rev. Rul. 81–100.
Required information.02A request for a determination letter on the status of a group trust as described
in Rev. Rul. 81–100 is made by submitting a written request demonstrating how the
group trust satisfies the five criteria listed in Rev. Rul. 81–100, together with the trust
instrument and related documents.
SECTION 15. AFFILIATED SERVICE
GROUPS; LEASED EMPLOYEES
Scope.01This section provides procedures for determination letter requests on affiliated
service group status under §414(m), and the effect of leased employees on a plan’s
qualified status.
Types of requests under
§ 414(m) or §414(n)
.02An employer that is subject to §414(m) or (n) may request a determination
letter under the following circumstances: (1) with respect to the initial qualification of
its plan, (2) on a plan amendment, and (3) in certain circumstances, even though the
plan has not been amended (for example, where there has been a change in
membership in the affiliated service group or where the employer did not previously
have reliance).

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Employer must request the
determination under §414(m)
or §414(n)
.03Generally, a determination letter will cover §414(m) or §414(n) only if the
employer requests such determination, and submits with the determination letter
application the information specified in section 15.09 below.
Forms.04Form 5300 (with Schedule Q) is submitted for a request on affiliated service
group status or leased employee status. Form 5307 cannot be used for this purpose.
Employer is responsible for
determining status under
§ 414(m) and §414(n)
.05An employer is responsible for determining at any particular time whether it is
a member of an affiliated service group and, if so, whether its plan(s) continues to
meet the requirements of §401(a) after the effective date of §414(m), including
§ 414(m)(5). An employer or plan administrator is also responsible for taking action
relative to the employer’s qualified plan if that employer becomes, or ceases to be, a
member of an affiliated service group. An employer that is the recipient of services of
leased employees within the meaning of §414(n) is also responsible for determining
at any particular time whether a leased employee is deemed to be an employee of the
recipient for qualified plan purposes.
Omission of material fact.06Failure to properly indicate that there is or may be an affiliated service group
and to provide the information specified in section 15.09 of this revenue procedure, or
failure to properly indicate that an employer is utilizing the services of leased
employees and to provide the information specified in section 15.09(11), is an
omission of a material fact. The failure of the adopting employer to follow the
procedures in this section will result in the employer being unable to rely on any
favorable determination letter concerning the effect of §414(m) or §414(n) on the
qualified status of the plan.
Service will indicate whether
§ 414(m) or §414(n) was
considered
.07If the Service considers whether the plan of an employer satisfies the
requirements of §414(m) or §414(n), the determination letter issued to the employer
will state that questions arising under §414(m) or §414(n) have been considered, and
that the plan satisfies qualification requirements relating to that section. Absent such a
statement pertaining to §414(m) or §414(n), a determination letter does not apply to
any qualification issue arising by reason of such provisions.
M&P plans; regional prototype
plans
.08An employer that has adopted an M&P plan or a regional prototype plan
(including a standardized form plan within the meaning of section 3.08 of Rev. Proc.
89–9 or a standardized regional prototype plan within the meaning of section 4.11 of
Rev. Proc. 89–13) and wants a determination as to the effect of §414(m) or §414(n)
on the qualified status of its plan must attach the information required by section
15.09 of this revenue procedure to Form 5300 and submit the information, Form 5300,
Schedule Q, and any other materials necessary to make a determination to the
appropriate key district office.
Required information.09Required information. A determination letter issued with respect to a plan’s
qualification under §401(a), 403(a), or 4975(e)(7) will be a determination as to the
effect of §414(m) upon the plan’s qualified status only if the application includes:
(1)A description of the nature of the business of the employer, specifically whether
it is a service organization or an organization whose principal business is the
performance of management functions for another organization, including the reasons
therefor;
(2)The identification of other members (or possible members) of the affiliated
service group;
(3)A description of the business of each member (or possible member) of the
affiliated service group, describing the type of organization (corporation, partnership,
etc.) and indicating whether the member is a service organization or an organization
whose principal business is the performance of management functions for the other
group member(s);
(4)The ownership interests between the employer and the members (or possible
members) of the affiliated service group (including ownership interests as described in
§ 414(m)(2)(B)(ii) or §414(m)(6)(B));
(5)A description of services performed for the employer by the members (or
possible members) of the affiliated service group, or vice versa (including the
percentage of each member’s (or possible member’s) gross receipts and service
receipts provided by such services, if available, and data as to whether such services

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are a significant portion of the member’s business) and whether, as of December 13,
1980, it was not unusual for the services to be performed by employees of
organizations in that service field in the United States;
(6)A description of how the employer and the members (or possible members) of
the affiliated service group associate in performing services for other parties;
(7)In the case of a management organization under §414(m)(5):
(a)a description of the management functions, if any, performed by the employer
for the member(s) (or possible member(s)) of the affiliated service group, or received
by the employer from any other members (or possible members) of the group
(including data explaining whether the management functions are performed on a
regular and continuous basis) and whether or not it is unusual for such management
functions to be performed by employees of organizations in the employer’s business
field in the United States;
(b)if management functions are performed by the employer for the member (or
possible members) of the affiliated service group, a description of what part of the
employer’s business constitutes the performance of management functions for the
member (or possible member) of the group (including the percentage of gross receipts
derived from management activities as compared to the gross receipts from other
activities);
(8)A brief description of any other plan(s) maintained by the members (or possible
members) of the affiliated service group, if such other plan(s) is designated as a unit
for qualification purposes with the plan for which a determination letter has been
requested;
(9)A description of how the plan(s) satisfies the coverage requirements of §410(b)
if the members (or possible members) of the affiliated service group are considered
part of an affiliated service group with the employer;
(10)A copy of any ruling issued by the national office on whether the employer is
an affiliated service group; a copy of any prior determination letter that considered the
effect of §414(m) on the qualified status of the employer’s plan; and, if known, a
copy of any such ruling or determination letter issued to any other member (or
possible member) of the same affiliated service group, accompanied by a statement as
to whether the facts upon which the ruling or determination letter was based have
changed.
(11)Unless the plan provides that all leased employees within the meaning of
§ 414(n)(2) are treated as common law employees for all purposes under the plan, a
determination letter issued with respect to the plan’s qualification under §401(a) or
403(a) will be a determination as to the effect of §414(n) upon the plan’s qualified
status only if the application includes:
(a)A description of the nature of the business of the recipient organization;
(b)A copy of the relevant leasing agreement(s);
(c)A description of the function of all leased employees within the trade or
business of the recipient organization (including data as to whether all leased
employees are performing services on a substantially full-time basis) and whether it is
not unusual for the services to be performed by employees of organizations in the
recipient organization’s business field in the United States; and
(d)If the recipient organization is relying on any qualified plan(s) maintained by
the employee leasing organization for purposes of qualification of the recipient
organization’s plan, a description of such plan(s) (including a description of the
contributions or benefits provided for all leased employees which are attributable to
services performed for the recipient organization, plan eligibility, and vesting).
SECTION 16. WAIVER OF
MINIMUM FUNDING
Scope.01This section provides procedures with respect to defined contribution plans for
requesting a waiver of the minimum funding standard account and requesting a
determination letter on any plan amendment required for the waiver.

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Applicability of Rev. Proc. 94–41.02The procedures of Rev. Proc. 94–41, 1994–1 C.B. 711, which supersedes Rev.
Proc. 83–41, 1983–1 C.B. 775, as modified by Rev. Proc. 88–5, 1988–1 C.B. 587, and
Rev. Proc. 88–29, 1988–1 C.B. 828, apply to the request for a waiver of the minimum
funding requirement.
Waiver and determination letter
request submitted to national
office
.03Under this section, both the request for a waiver ruling and the request for a
determination letter on the effect of any amendment necessary to satisfy section 3 of
Rev. Rul. 78–223, 1978–1 C.B. 125, must be submitted by the taxpayer to the national
office where it will be treated as a mandatory request for technical advice. The request
that is submitted to the national office must include the following:
(1)All the procedural requirements described in section 2 of Rev. Proc. 94–41
must be satisfied;
(2)The submission must include a completed Form 5300 (with Schedule Q) and all
necessary documents, plan amendments, and information required by the Form 5300
and by this revenue procedure for approval of the plan amendments;
(3)The request must indicate which key district office has audit jurisdiction over
the return; and
(4)The request and the applicable user fee (required by Rev. Proc. 96–8) for both
the waiver request and the determination letter request should be sent to:
Internal Revenue Service
Assistant Commissioner (Employee Plans and Exempt Organizations)
Attention: CP:E:EP:A:1
P.O. Box 14073
Ben Franklin Station
Washington, D.C. 20044
Additional information sent after the initial request should be sent to:
Chief, Actuarial Branch 1
CP:E:EP:A:1
Internal Revenue Service
1111 Constitution Ave., N.W.
Washington, D.C. 20224
Handling of the request.04The waiver request will be handled by the national office as follows:
(1)The waiver request and supporting documents will be forwarded to Actuarial
Branch, CP:E:EP:A:1, which will treat the request as a technical advice on the
qualification issue with respect to the plan provisions necessary to satisfy section 3 of
Rev. Rul. 78–223.
(2)The appropriate key district office will be notified of the request. In order not
to delay the processing of the request, all materials relating to the determination letter
request will be sent by the national office to the key district director for consideration
while the technical advice request is completed.
(3)The national office will consider both the application for a funding waiver and
the proposed plan amendment. If a waiver is to be granted and if the national office
believes that qualification of the plan is not adversely affected by the plan amend-
ment, the mandatory technical advice memorandum will be issued to the key district
director. The key district director must decide within 10 working days from the date
of the technical advice memorandum either to furnish the applicant with the technical
advice memorandum and with a favorable advance determination letter, or to ask for
reconsideration of the technical advice memorandum. This request must be in writing.
An initial written notice of an intent to make this request may be submitted within 10
working days of the date of the technical advice memorandum and followed by a writ-
ten request within 30 working days from the date of such written notice. If the key
district director does not ask for reconsideration of the technical advice memorandum
within 10 working days, the Actuarial Branch will issue the waiver ruling. This ruling
will not contain the caveat described in section 3.02 of Rev. Proc. 94–41.
Interested party notice and
comment
.05The notice and comment requirements for interested parties provided in sections
18 and 19 of this revenue procedure must be satisfied. Comments are to be forwarded
to the key district office that is considering the determination letter request for the
plan amendments. With respect to the waiver request the notice requirements
applicable to waiver requests found in Rev. Proc. 94–41 must be satisfied.

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When waiver request should be
submitted
.06In the case of a plan other than a multiemployer plan, no waiver may be
granted under §412(d) with respect to any plan for any plan year unless an
application therefor is submitted to the Service not later than the 15th day of the third
month beginning after the close of such plan year. The Service may not extend this
deadline. A request for a waiver with respect to a multiemployer plan generally must
be submitted no later than the close of the plan year following the plan year for which
the waiver is requested.
In seeking a waiver with respect to a plan year which has not yet ended, the
applicant may have difficulty in furnishing sufficient current evidence in support of
the request. For this reason it is generally advisable that such advance request be
submitted no earlier than 180 days prior to the end of the plan year for which the
waiver is requested.
SECTION 17. SECTION
420 DETERMINATION
LETTERS
Scope.01This section provides procedures for requesting determination letters on plan
language that permits, pursuant to §420, the transfer of assets in a defined benefit
plan to a health benefit account described in §401(h).
Required Information.02The key district director will consider the qualified status of plan language
designed to comply with §420 only if the plan sponsor requests such consideration in
a cover letter. The cover letter must specifically state (i) whether consideration is
being requested only with regard to §420, or (ii) whether consideration is being
requested with regard to §420 in addition to other matters under §401(a). The cover
letter must specifically state the location of a plan provision that satisfies each of the
following requirements. The checklist in the Appendix of this revenue procedure may
be used to identify the location of relevant plan provisions.
(1)The plan must include a health benefits account as described in §401(h).
(2)The plan must provide that transfers shall be limited to transfers of ‘‘excess
assets’’ as defined in §420(e)(2).
(3)The plan must provide that only one transfer may be made in a taxable year.
However, for purposes of determining whether the rule in the preceding sentence is
met, a plan may provide that a transfer will not be taken into account if it is a transfer
that:
(a)is made after the close of the taxable year preceding the employer’s first taxable
year beginning after December 31, 1990, and before the earlier of (i) the due date
(including extensions) for the filing of the return of tax for such preceding year, or (ii)
the date such return is filed; and
(b)does not exceed the expenditures of the employer for qualified current retiree
health liabilities for such preceding taxable year.
(4)The plan must provide that the amount transferred shall not exceed the amount
which is reasonably estimated to be the amount the employer will pay out (whether
directly or through reimbursement) of the health benefit account during the taxable
year of the transfer for ‘‘qualified current retiree health liabilities’’, as defined in
§ 420(e)(1).
(5)The plan must provide that no transfer will be made in any taxable year
beginning after December 31, 2000.
(6)The plan must provide that any assets transferred, and any income allocable to
such assets, shall be used only to pay qualified current retiree health liabilities for the
taxable year of transfer.
(7)The plan must provide that any amounts transferred to a health benefits account
(and income attributable to such amounts) which are not used to pay qualified current
retiree health liabilities shall be transferred back to the defined benefit portion of the
plan.
(8)The plan must provide that the amounts paid out of a health benefits account
will be treated as paid first out of transferred assets and income attributable to those
assets.

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(9)The plan must provide that the accrued pension benefits for participants and
beneficiaries must become nonforfeitable as if the plan had terminated immediately
prior to the transfer (or in the case of a participant who separated during the 1-year
period ending on the date of transfer immediately before such separation). In the case
of a transfer described in §420(b)(4) that relates to a prior year, the plan must
provide that the accrued benefit of a participant who separated from service during the
taxable year to which such transfer relates will be recomputed and treated as
nonforfeitable immediately before such separation.
(10)The plan must provide that a transfer will be permitted only if each group
health plan or arrangement under which health benefits are provided contains
provisions satisfying §420(c)(3). The plan must define ‘‘applicable employer cost’’,
‘‘cost maintenance period’’, and ‘‘benefit maintenance period’’, as applicable,
consistent with §420(c)(3). The plan may provide that §420(c)(3) is satisfied
separately with respect to individuals eligible for benefits under Title XVIII of the
Social Security Act at any time during the taxable year and with respect to individuals
not so eligible.
(11)The plan must provide that transferred assets cannot be used for key
employees (as defined in §416(i)(1)).
PART II. INTERESTED PARTY
NOTICE AND COMMENT
SECTION 18. WHAT RIGHTS TO
NOTICE AND COMMENT DO
INTERESTED PARTIES HAVE?
Rights of interested parties.01Persons who qualify as interested parties under §1.7476–1(b), have the
following rights:
(1)To receive notice, in accordance with section 19 below, that an application for
an advance determination will be filed regarding the qualification of plans described
in §§401, 403(a), 409 and/or 4975(e)(7);
(2)To submit written comments with respect to the qualification of such plans to
the Service;
(3)To request the Department of Labor to submit a comment to the Service on
behalf of the interested parties; and
(4)To submit written comments to the Service on matters with respect to which the
Department of Labor was requested to comment but declined.
Comments by interested parties.02Comments submitted by interested parties must be received by the key district
director by the 45th day after the day on which the application for determination is
received by the key district director. (However, see sections 18.03 and 18.04 for filing
deadlines where the Department of Labor has been requested to comment). Such
comments must be in writing, signed by the interested parties or by an authorized
representative of such parties (as provided in section 9.01(7) of Rev. Proc. 96–4),
addressed to the key district director to whom the application for determination was
submitted, and contain the following information:
(1)The names of the interested parties making the comments;
(2)The name and taxpayer identification number of the applicant for a
determination;
(3)The name of the plan, the plan identification number, and the name of the plan
administrator;
(4)Whether the parties submitting the comment are:
(a)Employees eligible to participate under the plan,
(b)Employees with accrued benefits under the plan, or former employees with
vested benefits under the plan,
(c)Beneficiaries of deceased former employees who are eligible to receive or are
currently receiving benefits under the plan,
(d)Employees not eligible to participate under the plan.

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(5)The specific matters raised by the interested parties on the question of whether
the plan meets the requirements for qualification involving §§401 and 403(a), and
how such matters relate to the interests of the parties making the comment; and
(6)The address of the interested party submitting the comment (or if a comment is
submitted jointly by more than one party, the name and address of a designated
representative) to which all correspondence, including a notice of the Service’s final
determination with respect to qualification, should be sent. (The address designated for
notice by the Service will also be used by the Department of Labor in communicating
with the parties submitting a request for comment.) The designated representative may
be one of the interested parties submitting the comment or an authorized
representative. If two or more interested parties submit a single comment and one
person is not designated in the comment as the representative for receipt of
correspondence, a notice of determination mailed to any interested party who
submitted the comment shall be notice to all the interested parties who submitted the
comment for purposes of §7476(b)(5) of the Code.
Requests for DOL to submit
comments
.03A request to the Department of Labor to submit to the key district director a
comment pursuant to §3001(b)(2) of ERISA must be made in accordance with the
following procedures.
(1)The request must be received by the Department of Labor by the 25th day after
the day the application for determination is received by the key district director.
However, if the parties requesting the Department to submit a comment wish to
preserve the right to comment to the key district director in the event the Department
declines to comment, the request must be received by the Department by the 15th day
after the day the application for determination is received by the key district director.
(2)The request to the Department of Labor to submit a comment to the key district
director must:
(a)Be in writing;
(b)Be signed as provided in section 18.02 above;
(c)Contain the names of the interested parties requesting the Department to
comment and the address of the interested party or designated representative to whom
all correspondence with respect to the request should be sent. See also section
18.02(6) above;
(d)Contain the information prescribed in section 18.02(2), (3), (4), (5) and (6)
above;
(e)Contain the address of the key district director to whom the application was or
will be submitted;
(f)Contain a statement of the specific matters upon which the Department’s
comment is sought, as well as how such matters relate to the interested parties making
the request; and
(g) Be addressed as follows:
Deputy Assistant Secretary
Pension and Welfare Benefits Administration
U.S. Department of Labor,
200 Constitution Avenue, N.W.,
Washington, D.C. 20210
Attention: 3001 Comment Request
Right to comment if DOL
declines to comment
.04If a request described in 18.03 is made and the Department of Labor notifies
the interested parties making the request that it declines to comment on a matter
concerning qualification of the plan which was raised in the request, the parties
submitting the request may still submit a comment to the key district director on such
matter. The comment must be received by the later of the 45th day after the day the
application for determination is received by the key district director or the 15th day
after the day on which notification is given by the Department that it declines to
submit a comment on such matter. (See section 18.07 for the date of notification.) In
no event may the comment be received later than the 60th day after the day the
application for determination was received. Such a comment must comply with the

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requirements of section 18.02 and include a statement that the comment is being
submitted on matters raised in a request to the Department upon which the
Department declined to comment.
Confidentiality of comments.05For rules regarding the confidentiality of contents of written comments
submitted by interested parties to the Service pursuant to section 18.02 or 18.04, see
§ 601.201(o)(5) of the Statement of Procedural Rules.
Availability of comments.06For rules regarding the availability to the applicant of copies of all comments
on the application submitted pursuant to section 18.01(1), (2), (3) and (4) of this
revenue procedure, see §601.201(o)(5) of the Statement of Procedural Rules.
When comments are deemed
made
.07An application for an advance determination, a comment to the key district
director, or a request to the Department of Labor shall be deemed made when it is
received by the key district director, or the Department. Notification by the
Department that it declines to comment shall be deemed given when it is received by
the interested party or designated representative. The notice described in section 19.01
below shall be deemed given when it is given in person, posted as prescribed in the
regulations under §7476 of the Code, or received through the mail. In any case where
such an application, comment, request, notification, or notice is sent by mail, it shall
be deemed received as of the date of the postmark (or if sent by certified or registered
mail, the date of certification or registration), if it is deposited in the mail in the
United States in an envelope or other appropriate wrapper, first class postage prepaid,
properly addressed. However, if such an application, comment, request, notification, or
notice is not received within a reasonable period from the date of postmark, the
immediately preceding sentence shall not apply.
SECTION 19. WHAT ARE THE
GENERAL RULES FOR NOTICE TO
INTERESTED PARTIES?
Notice to interested parties.01Notice that an application for an advance determination regarding the
qualification of a plan described in §§401, 403(a), 409 and 4975(e)(7) is to be made
must be given to all interested parties in the manner set forth in §1.7476–2(c) and in
accordance with the requirements of this section.
Time when notice must be given.02When the notice referred to in section 19.01 is given by posting or in person,
such notice must be given not less than 7 days nor more than 21 days prior to the day
the application for a determination is made. When the notice is given by mailing, it
should be given not less than 10 days nor more than 24 days prior to the day the
application for a determination is made. If, however, an application is returned to the
applicant for failure to adequately satisfy the notification requirements with respect to
a particular group or class of interested parties, the applicant need not cause notice to
be given to those groups or classes of interested parties with respect to which the
notice requirement was already satisfied merely because, as a result of the
resubmission of the application, the time limitations of this subsection would not be
met.
Content of notice.03The notice referred to in section 19.01 shall be in writing and shall contain the
following information:
(1)A brief description identifying the class or classes of interested parties to whom
the notice is addressed (e.g., all present employees of the employer, all present
employees eligible to participate);
(2)The name of the plan, the plan identification number, and the name of the plan
administrator;
(3)The name and taxpayer identification number of the applicant for a
determination;
(4)That an application for a determination as to the qualified status of the plan is
to be made to the Service, stating whether the application relates to an initial
qualification, a plan amendment, termination, or a partial termination and the address
of the key district director to whom the application will be submitted;
(5)A description of the class of employees eligible to participate under the plan;
(6)Whether or not the Service has issued a previous determination as to the
qualified status of the plan;

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(7)A statement that any person to whom the notice is addressed is entitled to
submit, or request the Department of Labor to submit, to the key district director
described in section 19.03(4), a comment on the question of whether the plan meets
the requirements of §401 or 403(a); that two or more such persons may join in a
single comment or request; and that if such persons request the Department of Labor
to submit a comment and the Department of Labor declines to do so with respect to
one or more matters raised in the request, the persons may still submit a comment to
the key district director with respect to the matters on which the Department declines
to comment. The PBGC may also submit comments. In every instance where there is
either a final adverse termination or a distress termination, the Service formally
notifies the PBGC for comments;
(8)The specific dates by which a comment to the key district director or a request
to the Department of Labor must be received in order to preserve the right of
comment (see section 18 above);
(9)The number of interested parties needed in order for the Department of Labor to
comment; and
(10)Except to the extent that the additional informational material required to be
made available by sections 19.05 through 19.09 are included in the notice, a
description of a reasonable procedure whereby such additional informational material
will be available to interested parties (see section 19.04). (Examples of notices setting
forth the above information, in a case in which the additional information required by
sections 19.05 through 19.09 will be made available at places accessible to the
interested parties, are set forth in the Exhibit attached to this revenue procedure.)
Procedures for making
information available to
interested parties
.04The procedure referred to in section 19.03(10), whereby the additional
informational material required by sections 19.05 through 19.09 will (to the extent not
included in the notice) be made available to interested parties, may consist of making
such material available for inspection and copying by interested parties at a place or
places reasonably accessible to such parties, or supplying such material in person or
by mail, or by a combination of the foregoing, provided such procedure is
immediately available to all interested parties, is designed to supply them with such
additional informational material in time for them to pursue their rights within the
time period prescribed, and is available until the earlier of: 1) the filing of a pleading
commencing a declaratory judgment action under §7476 with respect to the
qualification of the plan; or 2) the 92nd day after the day the notice of final
determination is mailed to the applicant. Reasonable charges to interested parties for
copying and/or mailing such additional informational material are permissible.
Information to be available to
interested parties
.05Unless provided in the notice, or unless section 19.06 applies, there shall be
made available to interested parties under a procedure described in section 19.04:
(1)An updated copy of the plan and the related trust agreement (if any); and
(2)The application for determination.
Special rules if there are less
than 26 participants
.06If there would be less than 26 participants in the plan, as described in the
application (including, as participants, former employees with vested benefits under
the plan, beneficiaries of deceased former employees currently receiving benefits
under the plan, and employees who would be eligible to participate upon making
mandatory employee contributions, if any), then in lieu of making the materials
described in section 19.05 available to interested parties who are not participants (as
described above), there may be made available to such interested parties a document
containing the following information:
(1)A description of the plan’s requirements respecting eligibility for participation
and benefits and the plan’s benefit formula;
(2)A description of the provisions providing for nonforfeitable benefits;
(3)A description of the circumstances which may result in ineligibility, or denial or
loss of benefits;
(4)A description of the source of financing of the plan and the identity of any
organization through which benefits are provided;
(5)A description of any optional forms of benefits described in §411(d)(6) which
have been reduced or eliminated by plan amendment; and

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(6)Whether the applicant is claiming in the application that the plan meets the
requirements of §410(b)(1)(A), and, if not, the coverage schedule required by the
application in the case of plans not meeting the requirements of such section.
However, once an interested party or designated representative receives a notice of
final determination, the applicant must, upon request, make available to such
interested party (whether or not the plan has less than 26 participants) an updated
copy of the plan and related trust agreement (if any) and the application for
determination.
Information described in
§ 6104(a)(1)(D) should not
be included
.07Information of the type described in §6104(a)(1)(D) should not be included in
the application, plan, or related trust agreement submitted to the Service. Accordingly,
such information should not be included in any of the material required by section
19.05 or 19.06 to be available to interested parties.
Availability of additional
information to interested parties
.08Unless provided in the notice, there shall be made available to interested parties
under a procedure described in section 19.04, any additional document dealing with
the application which is submitted by or for the applicant to the Service, or furnished
by the Service to the applicant; provided, however, if there would be less than 26
participants in the plan as described in the application (including, as participants,
former employees with vested benefits under the plan, beneficiaries of deceased
former employees currently receiving benefits under the plan, and employees who
would be eligible to participate upon making mandatory employee contributions, if
any), such additional documents need not be made available to interested parties who
are not participants (as described above) until they, or their designated representative,
receive a notice of final determination. The applicant may also withhold from such
inspection and copying information described in §6104(a)(1)(C) and (D) which may
be contained in such additional documents.
Availability of notice to
interested parties
.09Unless provided in the notice, there shall be made available to all interested
parties under a procedure described in section 19.04 the material described in sections
19.02 through 19.07 above.
PART III. PROCESSING
DETERMINATION LETTER
REQUESTS
SECTION 20. HOW DOES THE
SERVICE HANDLE DETERMINATION
LETTER REQUESTS?
Oral advice.01 Oral advice.
(1)The Service does not issue determination letters on oral requests. However,
personnel in the key district offices ordinarily will discuss with taxpayers or their
representatives inquiries regarding: substantive tax issues; whether the Service will
issue a determination letter on particular issues; and questions relating to procedural
matters about submitting determination letter requests. Any discussion of substantive
issues will be at the discretion of the Service on a time available basis, will not be
binding on the Service, and cannot be relied upon as a basis of obtaining retroactive
relief under the provisions of §7805(b). A taxpayer may seek oral technical assistance
from a taxpayer service representative in a district office or Service Center when
preparing a return or report, under established procedures. Oral advice is advisory
only, and the Service is not bound to recognize it in the examination of the taxpayer’s
return.
(2)The advice or assistance furnished, whether requested by personal appearance,
telephone, or correspondence will be limited to general procedures, or will direct the
inquirer to source material, such as pertinent Code provisions, regulations, revenue
procedures, and revenue rulings that may aid the inquirer in resolving the question or
problem.
Conferences.02A key district director may grant a conference upon written request from a
taxpayer or his representative, provided the request shows that a substantive plan,
amendment, etc., has been developed for submission to the Service, but that special
problems or issues are involved, and the key district director concludes that a
conference would be warranted in the interest of facilitating review and determination
when the plan, etc., is formally submitted.

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Determination letter based solely
on administrative record
.03 Administrative Record
(1)In the case of a request for a determination letter, the determination of the key
district director or the appeals office on the qualification or non-qualification of the
retirement plan shall be based solely upon the facts contained in the administrative
record. The administrative record shall consist of the following:
(a)The request for determination, the retirement plan and any related trust
instruments, and any written modifications or amendments made by the applicant
during the proceedings within the Service;
(b)All other documents submitted to the Service by, or on behalf of, the applicant
with respect to the request for determination;
(c)All written correspondence between the Service and the applicant with respect
to the request for determination and any other documents issued to the applicant from
the Service;
(d)All written comments submitted to the Service pursuant to sections 18.01(1),
(2), and (3) above, and all correspondence relating to comments submitted between
the Service and persons (including PBGC and the Department of Labor) submitting
comments pursuant to sections 18.01(1), (2), and (3) above;
(e)In any case in which the Service makes an investigation regarding the facts as
represented or alleged by the applicant in the request for determination or in
comments submitted pursuant to sections 18.01(1), (2), and (3) above, a copy of the
official report of such investigation;
(2)The administrative record shall be closed upon the earlier of the following
events:
(a)The date of mailing of a notice of final determination by the Service with
respect to the application for determination; or
(b)The filing of a petition with the United States Tax Court seeking a declaratory
judgment with respect to the retirement plan.
(3)Any oral representation or modification of the facts as represented or alleged in
the application for determination or in a comment filed by an interested party, which
is not reduced to writing shall not become a part of the administrative record and shall
not be taken into account in the determination of the qualified status of the retirement
plan by the key district director, or the appeals office.
Notice of final determination.04In the case of final determination, the notice of final determination
(1)shall be the letter issued by the key district director, or the appeals office which
states that the applicant’s plan satisfies the qualification requirements of the Code.
The favorable determination letter will be sent by certified or registered mail where
either an interested party, the Department of Labor, or the PBGC has commented on
the application for determination.
(2)shall be the letter issued, by certified or registered mail, by the key district
director, or the appeals office subsequent to a letter of proposed determination, stating
that the applicant’s plan fails to satisfy the qualification requirements of the Code.
Issuance of the notice of final
determination
.05The key district director, or the appeals office will send the notice of final
determination to the applicant, to the interested parties who have previously submitted
comments on the application to the Service (or to the persons designated by them to
receive such notice), to the Department of Labor in the case of a comment submitted
by the Department, and to PBGC if it has filed a comment.
Key district offices.06Following are the key district offices that issue determination letters and the
areas covered by each:
KEY DISTRICTIRS DISTRICTS COVERED
CincinnatiIndiana, Kentucky, Michigan, Ohio, West Virginia
BaltimoreDelaware, District of Columbia, Maryland, New Jersey, Pennsyl-
vania, Virginia, any U.S. possession or foreign country
ChicagoIllinois, Iowa, Minnesota, Missouri, Montana, Nebraska, North
Dakota, South Dakota, Wisconsin

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BrooklynConnecticut, Maine, Massachusetts, New Hampshire, New York,
Rhode Island, Vermont
AtlantaAlabama, Arkansas, Florida, Georgia, Louisiana, Mississippi,
North Carolina, South Carolina, Tennessee
DallasArizona, Colorado, Kansas, Oklahoma, New Mexico, Texas, Utah,
Wyoming
Los AngelesAlaska, California, Hawaii, Idaho, Nevada, Oregon, Washington
NOTE: The preceding list does not reflect the reorganization of districts and regions pursuant to Treasury Order No. 150–01,
dated September 28, 1995, 1995–44 I.R.B. 23. Previously, on January 28, 1995, the Commissioner of Internal Revenue
announced that the Service will centralize its employee plans and exempt organizations determination letter program in
Cincinnati, Ohio. The centralization will be phased in, one key district at a time, beginning in 1996. Announcement 95–51,
1995–25 I.R.B. 132, states that the Service will notify the public in advance of the phase in of each key district office. Until
such notice is given, employers and organizations should continue to submit their requests for determination letters to the
key district offices designated above.
SECTION 21. EXHAUSTION OF
ADMINISTRATIVE REMEDIES
In general.01For purposes of §7476(b)(3), a petitioner shall be deemed to have exhausted
the administrative remedies available within the Service upon the completion of the
steps described in sections 21.02, 21.03, 21.04, or 21.05 subject, however, to sections
21.06 and 21.07. If applicants, interested parties, or the PBGC do not complete the
applicable steps described below, they will not have exhausted their respective
available administrative remedies as required by §7476(b)(3) and will, thus, be
precluded from seeking declaratory judgment under §7476 except to the extent that
section 21.05 or 21.08 applies.
Steps for exhausting
administrative remedies
.02In the case of an applicant, with respect to any matter relating to the
qualification of a plan, the steps referred to in section 21.01 are:
(1)Filing a completed application with the appropriate Key District Director
pursuant to this revenue procedure;
(2)Complying with the requirements pertaining to notice to interested parties as set
forth in this revenue procedure and § 1.7476-2 of the regulations; and,
(3)Appealing to the Appeals Office pursuant to paragraph 601.201(o)(6) of the
Statement of Procedural Rules, in the event a notice of proposed adverse
determination is issued by the key district director.
Applicant’s request for 7805(b)
relief
.03Consideration of relief under §7805(b) will be included as one of the
applicant’s steps in exhausting administrative remedies only if the applicant requests
the key district director to seek technical advice from the national office on the
applicability of such relief. The applicant’s request must be made in writing according
to the procedures for requesting technical advice (see section 18 of Rev. Proc. 96–5).
Interested parties.04In the case of an interested party or the PBGC, the steps referred to in section
21.01 are, with respect to any matter relating to the qualification of the plan,
submitting to the Key District Director a comment raising such matter in accordance
with section 18.01(1) above, or requesting the Department of Labor to submit to the
key district director a comment with respect to such matter in accordance with section
18.01(2) and, if the Department of Labor declines to comment, submitting the
comment in accordance with section 18.01(3) above, so that it may be considered by
the Service through the administrative process.
Deemed exhaustion of
administrative remedies
.05An applicant, an interested party, or the PBGC shall in no event be deemed to
have exhausted administrative remedies prior to the earlier of:
(1)The completion of those steps applicable to each as set forth in sections 21.01,
21.02, 21.03 or 21.04, which constitute their administrative remedies; or,
(2)The expiration of the 270-day period described in §7476(b)(3), which period
shall be extended in a case where there has not been a completion of all the steps
referred to in section 21.02 and the Service has proceeded with due diligence in
processing the application for determination.
Service must act on appeal.06The step described in section 21.02(3) will not be considered completed until
the Service has had a reasonable time to act upon the appeal.

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Service must act on §7805(b)
request
.07Where the applicant has requested the key district director to seek technical
advice on the applicability of §7805(b) relief, the applicant’s administrative remedies
will not be considered exhausted until the national office has had a reasonable time to
act upon the request for technical advice.
Effect of technical advice
request
.08The step described in section 21.02(3) will not be available or necessary with
respect to any issue on which technical advice has been obtained from the national
office.
SECTION 22. WHAT EFFECT
WILL AN EMPLOYEE PLAN
DETERMINATION LETTER HAVE?
Scope of reliance on
determination letter
.01A determination letter issued pursuant to this revenue procedure contains only
the opinion of the Service as to the qualification of the particular plan involving the
provisions of §§401 and 403(a) and the status of a related trust, if any, under
§ 501(a). Such a determination letter is based on the facts and demonstrations
presented to the Service in connection with the application for the determination letter
and may not be relied upon after a change in material fact or the effective date of a
change in law, except as provided. For example, a determination letter issued pursuant
to this revenue procedure may not be relied upon after a significant change in plan
coverage resulting from the operation of the plan. The Service may determine, based
on the application form, the extent of review of the plan document. Failure to disclose
a material fact or misrepresentation of a material fact may adversely affect the
reliance which would otherwise be obtained through the issuance by the Service of a
favorable determination letter. Similarly, failure to accurately provide any of the
information called for on any form required by this revenue procedure may result in
no reliance. Applicants are advised to retain copies of all demonstrations and
supporting data submitted with their applications. Failure to do so may limit the scope
of reliance.
Effect of determination letter on
minor plan amendment
.02Determination letters issued on minor amendments to plans and trusts under this
revenue procedure will merely express an opinion whether the amendment, in and of
itself, affects the existing status of the plan’s qualification and the exempt status of
the related trust. In no event should such a determination letter be construed as an
opinion on the qualification of the plan as a whole and the exempt status of the
related trust as a whole.
Sections 12 and 13 of Rev.
Proc. 96–4 applicable
.03Except as otherwise provided in this section, determination letters referred to in
sections 22.01 and 22.02 are governed, generally, by the provisions of sections 12 and
13 of Rev. Proc. 96–4.
Effect of subsequent publication
of revenue ruling, etc.
.04The prior qualification of a plan as adopted by an employer will not be
considered to be adversely affected by the publication of a revenue ruling, a revenue
procedure, or an administrative pronouncement within the meaning of §1.6661–
3(b)(2) of the regulations where:
(1)The plan was the subject of a favorable determination letter and the request for
that letter contained no misstatement or omission of material facts;
(2)The facts subsequently developed are not materially different from the facts on
which the determination letter was based;
(3)There has been no change in the applicable law; and
(4)The employer that established the plan acted in good faith in reliance on the
determination letter.
However, all such plans must be amended to comply with the published revenue
ruling for subsequent years. The conforming amendment to an individually designed
plan must be adopted before the end of the first plan year that begins after the revenue
ruling, revenue procedure, or administrative pronouncement is published in the
Internal Revenue Bulletin and must be effective, for all purposes, not later than the
first day of the first plan year beginning after the revenue ruling is published. For the
rule as to the conforming amendment to an M&P plan and a regional prototype plan,
see section 14 of Rev. Proc. 89–9 and Rev. Proc. 89–13, as modified by Rev. Proc.
90–21, sections 8.03–8.08 of Rev. Proc. 91–66, and Rev. Proc. 92–41.

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Determination letter does not
apply to taxability issues
.05While a favorable determination letter may serve as a basis for determining
deductions for employer contributions thereunder, it is not to be taken as an indication
that contributions are necessarily deductible as made. This latter determination can be
made only upon an examination of the employer’s tax return, in accordance with the
limitations, and subject to the conditions of, §404.
SECTION 23. EFFECT ON OTHER
REVENUE PROCEDURES
Superseded revenue procedure.01Rev. Proc. 93–39, with the exception of section 12 and section 13, is
superseded. Rev. Proc. 94–37, which modified Rev. Proc. 93–39, is also superseded.
Superseded revenue procedures.02Rev. Proc. 81–19 and Rev. Proc. 95–6 are superseded.
SECTION 24. EFFECTIVE DATEThis revenue procedure is effective January 2, 1996. The Service will, however,
continue to accept determination letter applications filed in accordance with the
instructions in Rev. Proc. 93–39, as modified by Rev. Proc. 94–37, through the 120th
day following the date of the Service’s announcement in the Internal Revenue Bulletin
of the availability of the revised 5300 series forms and new Schedule Q (Form 5300).
DRAFTING INFORMATIONThe principal author of this revenue procedure is Sanford Karo of the Employee
Plans Division. For further information regarding this revenue procedure, contact the
Employee Plans Division’s telephone assistance service between the hours of 1:30 and
4:00 p.m. Eastern time, Monday through Thursday, on (202) 622-6074 (not a toll-free
call). Mr. Karo can be contacted by calling (202) 622-6214 (also not a toll-free call).

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EXHIBIT: SAMPLE NOTICES TO INTERESTED PARTIES
The Exhibit set forth below, may be used to satisfy the requirements of section 19 of this revenue procedure.
Exhibit: Sample Notice to Interested Parties
1.Notice To:[describe class or classes of interested parties]
An application is to be made to the Internal Revenue Service for an advance determination on the qualification of the
following employee pension benefit plan:
2.
(name of plan)
3.
(plan number)
4.
(name and address of applicant)
5.
(applicant EIN)
6.
(name and address of plan administrator)
7.The application will be filed onwith the Key District Director, Internal Revenue Service at
for an advance determination as to whether the plan meets the qualification requirements of
§ 401 or 403(a) of the Internal Revenue Code of 1986, with respect to the plan’s[initial
qualification, amendment, termination, or partial termination].
8.The employees eligible to participate under the plan are:
9.The Internal Revenue Service[has/has not] previously issued a determination letter with respect
to the qualification of this plan.
RIGHTS OF INTERESTED PARTIES
10.You have the right to submit to the Key District Director, at the above address, either individually or jointly with other
interested parties, your comments as to whether this plan meets the qualification requirements of the Internal Revenue
Code.
You may instead, individually or jointly with other interested parties, request the Department of Labor to submit, on
your behalf, comments to the Key District Director regarding qualification of the plan. If the Department declines to
comment on all or some of the matters you raise, you may, individually, or jointly if your request was made to the
Department jointly, submit your comments on these matters directly to the Key District Director.
REQUESTS FOR COMMENTS BY THE DEPARTMENT OF LABOR
11.The Department of Labor may not comment on behalf of interested parties unless requested to do so by the lessor of 10
employees or 10 percent of the employees who qualify as interested parties. The number of persons needed for the
Department to comment with respect to this plan is. If you request the Department to
comment, your request must be in writing and must specify the matters upon which comments are requested, and must
also include:
(1)the information contained in items 2 through 5 of this Notice; and
(2)the number of persons needed for the Department to comment.
A request to the Department to comment should be addressed as follows:
Deputy Assistant Secretary
Pension and Welfare Benefits Administration
ATTN: 3001 Comment Request
U.S. Department of Labor,
200 Constitution Avenue, N.W.
Washington, D.C. 20210

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COMMENTS TO THE INTERNAL REVENUE SERVICE
12.Comments submitted by you to the Key District Director must be in writing and received by him by
. However, if there are matters that you request the Department of Labor to comment
upon on your behalf, and the Department declines, you may submit comments on these matters to the Key District
Director to be received by him within 15 days from the time the Department notifies you that it will not comment on a
particular matter, or by, whichever is later, but not after. A request to
the Department to comment on your behalf must be received by it byif you wish to
preserve your right to comment on a matter upon which the Department declines to comment, or by
if you wish to waive that right.
ADDITIONAL INFORMATION
13.Detailed instructions regarding the requirements for notification of interested parties may be found in sections 18 and
19 of Rev. Proc. 96–6. Additional information concerning this application (including, where applicable, an updated copy
of the plan and related trust; the application for determination; any additional documents dealing with the application
that have submitted to the Service; and copies of section 18 of Rev. Proc. 96–6 are available at
during the hours offor inspection and
copying. (There is a nominal charge for copying and/or mailing.)

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APPENDIX
ChecklistAs part of a §420 determination letter request described in section 17 of this revenue procedure the following
checklist may be completed and attached to the determination letter request:
ITEMCIRCLESECTION
1.Does the Plan contain a medical benefits account within the meaning of §401(h) of the Code?
If the medical benefits account is a new provision, items ‘‘a’’ through ‘‘h’’ should be
completed.
YesNo
a.Does the medical benefits account specify the medical benefits that will be available and
contain provisions for determining the amount which will be paid?
YesNo
b.Does the medical benefits account specify who will benefit?YesNo
c.Does the medical benefits account indicate that such benefits, when added to any life
insurance protection in the Plan, will be subordinate to retirement benefits?
YesNo
d.Does the medical benefits account maintain separate accounts with respect to contributions
to key employees (as defined in §416(i)(1) of the Code) to fund such benefits?
YesNo
e.Does the medical benefits account state that amounts contributed must be reasonable and
ascertainable?
YesNo
f.Does the medical benefits account provide for the impossibility of diversion prior to
satisfaction of liabilities (other than item ‘‘7’’ below)?
YesNo
g.Does the medical benefits account provide for reversion upon satisfaction of all liabilities
(other than item ‘‘7’’ below)?
YesNo
h.Does the medical benefits account provide that forfeitures must be applied as soon as
possible to reduce employer contributions to fund the medical benefits?
YesNo
2.Does the Plan limit transfers to ‘‘Excess Assets’’ as defined in §420(e)(2) of the Code?YesNo
3.Does the Plan provide that only one transfer may be made in a taxable year (except with
regard to transfers relating to prior years pursuant to §420(b)(4) of the Code)?
YesNo
4.Does the Plan provide that the amount transferred shall not exceed the amount reasonably
estimated to be paid for qualified current retiree health liabilities?
YesNo
5.Does the Plan provide that no transfer will be made in any taxable year beginning after
December 31, 2000?
YesNo
6.Does the Plan provide that transferred assets and income attributable to such assets shall be
used only to pay qualified current retiree health liabilities for the taxable year of transfer?
YesNo
7.Does the Plan provide that any amounts transferred (plus income) that are not used to pay
qualified current retiree health liabilities shall be transferred back to the defined benefit portion
of the Plan?
YesNo
8.Does the Plan provide that amounts paid out of a health benefits account will be treated as
paid first out of transferred assets and income attributable to those assets?
YesNo
9.Does the Plan provide that participants’ accrued benefits become nonforfeitable on a
termination basis (i) immediately prior to transfer, or (ii) in the case of a participant who
separated within 1 year before the transfer, immediately before such separation?
YesNo
10.In the case of transfers described in §420(b)(4) of the Code relating to 1990, does the Plan
provide that benefits will be recomputed and become nonforfeitable for participants who
separated from service in such prior year as described in §420(c)(2)?
YesNo
11.Does the Plan provide that transfers will be permitted only if each group health plan or
arrangement contains provisions satisfying § 420(c)(3) of the Code?
YesNo
12.Does the Plan define ‘‘applicable employer cost’’, ‘‘cost maintenance period’’ and‘‘ benefit
maintenance period’’, as needed, consistently with § 420(c)(3) of the Code?
YesNo
13.Does the Plan provide that transferred assets cannot be used for key employees?YesNo

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26 CFR 601.201: Rulings and determination
letters.
Rev. Proc. 96–7
SECTION 1. PURPOSE AND
NATURE OF CHANGES
.01Purpose
This revenue procedure updates Rev.
Proc. 95–7, 1995–1 C.B. 482 by pro-
viding a list of subject matters under
the jurisdiction of the Associate Chief
Counsel (International) in which the
Internal Revenue Service will not issue
advance letter rulings or determination
letters. Rev. Proc. 96–3, page 82, this
Bulletin, lists the subject matters under
the jurisdiction of the Associate Chief
Counsel (Domestic) in which the Serv-
ice will not issue advance letter rulings
or determination letters.
.02Changes
New section 4.01.25, dealing with
various issues that arise in determining
whether an intermediate entity is a
conduit entity for purposes of sections
881, 882, 1441 or 1442, has been
added to reflect the Service’s view that
the stated issues require fact and
circumstance determinations that are
not the proper subject of advance letter
rulings and determination letters.
SEC. 2. BACKGROUND AND
SCOPE OF APPLICATION
.01Background
Whenever appropriate to sound tax
administration, the Service answers
inquiries from individuals and organi-
zations about their status for tax
purposes and the tax effects of their
acts or transactions, before the filing of
returns or reports that are required by
the Internal Revenue Code. There are,
however, areas where the Service will
not issue advance letter rulings or
determination letters, either because the
issues are inherently factual or for
other reasons. This revenue procedure
lists those areas.
Section 3 gives areas in which
advance letter rulings and determina-
tions will not be issued under any
circumstances. Section 4 gives areas in
which they will not ordinarily be
issued; in these areas, unique and
compelling reasons may justify issuing
a letter ruling or determination letter. A
taxpayer who plans to request a letter
ruling or determination letter in an area
described in Section 4 should contact
(by telephone or in writing) the Office
of Associate Chief Counsel (Interna-
tional) (hereinafter ‘‘the Office’’) prior
to making such request and discuss
with the Office the unique and compel-
ling reasons that the taxpayer believes
justify issuing such letter ruling or
determination letter. While not re-
quired, a written submission is en-
couraged since it will enable Office
personnel to arrive more quickly at an
understanding of the unique facts of
each case. A taxpayer who contacts the
Office by telephone may be requested
to provide a written submission. The
Service may provide a general informa-
tion letter in response to inquiries in
areas on either list.
These lists are not all-inclusive.
Future revenue procedures may add or
delete items. The Service may also
decline to rule on an individual case
for reasons peculiar to that case; such
decisions will not be announced in the
Internal Revenue Bulletin.
.02Scope of Application
This revenue procedure does not
preclude District Directors, the Assist-
ant Commissioner (International), or
Chiefs, Appeals Offices from submit-
ting requests for technical advice in the
areas listed to the Office.
SEC. 3. AREAS IN WHICH
LETTER RULINGS OR
DETERMINATION LETTERS WILL
NOT BE ISSUED
.01Specific Questions and Problems
1. Section 871(g).—Special Rules
for Original Issue Discount.—Whether
a debt instrument having original issue
discount within the meaning of §1273
of the Internal Revenue Code is not an
original issue discount obligation
within the meaning of §871(g)(1)(B)(i)
when the instrument is payable 183
days or less from the date of original
issue (without regard to the period held
by the taxpayer).
2.Section 894.—Income Affected
by Treaty.—Whether a person that is a
resident of a foreign country and
derives income from the United States
is entitled to benefits under the United
States income tax treaty with that
foreign country pursuant to the limita-
tion on benefits article. However, the
Service may rule regarding the legal
interpretation of a particular provision
within the relevant limitation on bene-
fits article.
3.Section 954.—Foreign Base Com-
pany Income.—The effective rate of
tax that a foreign country will impose
on income.
4. Section 7701.—Definitions.—
Whether a foreign arrangement that is a
participant in a domestic arrangement
classified as a partnership for United
States tax purposes will itself be
classified as a partnership.
.02General Areas.
1.The prospective application of the
estate tax to the property or the estate
of a living person, except that letter
rulings may be issued on any interna-
tional issues in a ruling request ac-
cepted pursuant to Rev. Proc. 88–50,
1988–2 C.B. 711, and §5.05 of Rev.
Proc. 96–1, page 8, this Bulletin.
2.The federal tax consequences of
proposed federal, state, local, munici-
pal, or foreign legislation.
3.Whether reasonable cause exists
under Subtitle F (Procedure and Ad-
ministration) of the Code.
4.Whether a proposed transaction
would subject a taxpayer to criminal
penalties.
5.Any area where the letter ruling
request does not comply with the
requirements of Rev. Proc. 96–1, page
8, this Bulletin.
6.Any area where the same issue is
the subject of the taxpayer’s pending
request for competent authority assist-
ance under a United States tax treaty.
7.A ‘‘comfort’’ ruling will not be
issued with respect to an issue that is
clearly and adequately addressed by
statute, regulations, decisions of a
court, tax treaties, revenue rulings, or
revenue procedures absent extraordin-
ary circumstances (e.g., a request for a
letter ruling required by a governmental
regulatory authority in order to effectu-
ate the transaction).
SEC. 4. AREAS IN WHICH
LETTER RULINGS OR
DETERMINATION LETTERS WILL
NOT ORDINARILY BE ISSUED
. 0 1 S p e c i f i c Q u e s t i o n s a n d
Problems.
1. Section 367(a).—Transfers of
Property from the United States.—
Whether an oil or gas working interest
is transferred from the United States
for use in the active conduct of a trade
or business for purposes of §367(a)(3);
and whether any other property is so
transferred, where the determination
requires extensive factual inquiry.
2. Section 367(b).—Other Trans-
fers.—Whether a foreign corporation is

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considered a corporation for purposes
of any nonrecognition provision listed
in §367(b), and related issues, unless
the letter ruling presents a significant
legal issue or subchapter C rulings are
requested in the context of reorganiza-
tions or liquidations involving foreign
corporations. (These matters are dealt
with in detail in §7.367(b) of the
Temporary Income Tax Regulations.)
3. Section 864.—Definitions and
Special Rules.—Whether a taxpayer is
engaged in a trade or business within
the United States, and whether income
is effectively connected with the con-
duct of a trade or business within the
United States; whether an instrument is
a security as defined in §1.864–
2(c)(2); whether a taxpayer effects
transactions in the United States in
stocks or securities under §1.864–
2(c)(2); whether an instrument or item
is a commodity as defined in §1.864–
2(d)(3); and for purposes of §1.864–
2(d)(1) and (2), whether a commodity
is of a kind customarily dealt in on an
organized commodity exchange, and
whether a transaction is of a kind
customarily consummated at such
place.
4.Section 871.—Tax on Nonresident
Alien Individuals.—Whether the in-
come earned on contracts that do not
qualify as annuities or life insurance
contracts because of the limitations
imposed by §§72(s) and 7702(a) is
portfolio interest as defined in
§ 871(h).
5.Section 881.—Tax on Income of
Foreign Corporations Not Connected
with United States Business.—Whether
the income earned on contracts that do
not qualify as annuities or life insur-
ance contracts because of the limita-
tions imposed by §§72(s) and 7702(a)
is portfolio interest as defined in
§ 881(c).
6.Section 892.—Income of Foreign
Governments and of International
Organizations.—Whether income re-
ceived by local governmental au-
thorities of the United Kingdom from
certain United States investments of
money allocable to their superannuation
funds is exempt from federal income
taxation.
7.Section 892.—Income of Foreign
Governments and of International
Organizations.—Whether a foreign
government is engaged in commercial
activities for purposes of §892, and
whether income received by a foreign
government is derived from the con-
duct of such commercial activities.
8.Section 893.—Compensation of
Employees of Foreign Governments
and International Organizations.—
Whether a foreign government is
engaged in commercial activities for
purposes of §893, and whether the
services of an employee of a foreign
government are primarily in connection
with such commercial activities.
9.Section 894.—Income Affected
by Treaty.—Whether a taxpayer has a
permanent establishment in the United
States for purposes of any United
States income tax treaty and whether
income is attributable to a permanent
establishment in the United States.
10.Section 894.—Income Affected
by Treaty.—Whether the income re-
ceived by a nonresident alien student
for services performed for a university
or other educational institution is ex-
empt from federal income tax or
withholding under United States in-
come tax treaties with Belgium, China,
Cyprus, Egypt, Finland, France, Ice-
land, Japan, Korea, Morocco, the
Netherlands, Norway, Pakistan, the
Philippines, Poland, Romania, and
Trinidad and Tobago. Rev. Proc. 87–8,
1987–1 C.B. 366, as modified by Rev.
Proc. 93–22, 1993–1 C.B. 535, and as
modified by Rev. Proc. 93–22A, 1993–
2 C.B. 343.
11.Section 894.—Income Affected
by Treaty.—Whether the income re-
ceived by a nonresident alien perform-
ing research or teaching at a university
is exempt from federal income tax or
withholding under United States in-
come tax treaties with Belgium, China,
Egypt, Finland, France, Hungary, Ice-
land, Italy, Jamaica, Japan, Korea,
Luxembourg, the Netherlands, Norway,
the Philippines, Poland, Romania, Swe-
den, Trinidad and Tobago, the former
Union of the Soviet Socialist Re-
publics, and the United Kingdom. Rev.
Proc. 87–9, 1987–1 C.B. 368, as
modified by Rev. Proc. 93–22, 1993–1
C.B. 535, and as modified by Rev.
Proc. 93–22A, 1993–2 C.B. 343.
12.Section 894.—Income Affected
by Treaty.—Whether the income re-
ceived by a nonresident alien teaching
at a university is exempt from federal
income tax or withholding under
United States income tax treaties with
Austria, Denmark, the Federal Republic
of Germany, Greece, Ireland, Pakistan,
and Switzerland. Rev. Proc. 87–9,
1987–1 C.B. 368, as modified by Rev.
Proc. 93–22, 1993–1 C.B. 535, and as
modified by Rev. Proc. 93–22A, 1993–
2 C.B. 343.
13.Section 894.—Income Affected
by Treaty.—Whether a foreign recip-
ient of payments made by a United
States person is ineligible to receive the
benefits of a United States tax treaty
under the principles of Rev. Rul. 84–
152, 1984–2 C.B. 381, as modified by
Rev. Rul. 85–163, 1985–2 C.B. 249,
and modified and clarified by Rev. Rul.
89–110, 1989–2 C.B. 275; and Rev.
Rul. 84–153, 1984–2 C.B. 383, as
modified by Rev. Rul. 85–163, 1985–2
C.B. 249, and modified and clarified by
Rev. Rul. 89–110, 1989–2 C.B. 275.
14.Section 894.—Income Affected
by Treaty.—Whether a recipient of
payments is or has been a resident of a
country for purposes of any United
States tax treaty. Pursuant to §1.884–
5(f), however, the Service may rule
whether a corporation representing that
it is a resident of a country is a
qualified resident thereof for purposes
of §884.
15.Section 901.—Taxes of Foreign
Countries and of Possessions of the
United States.—Whether a person
claiming a credit has established, based
on all of the relevant facts and
circumstances, the amount (if any) paid
by a dual capacity taxpayer under a
qualifying levy that is not paid in
exchange for a specific economic bene-
fit. See §1.901–2A(c)(2).
16.Sections 927, 936, 954, 993.—
Manufactured Product. Whether a prod-
uct is manufactured or produced for
purposes of §§ 927(a), 936(h)(5),
954(d), and 993(c).
17. Section 956.—Investment of
Earnings in United States Property.—
Whether a pledge of the stock of a
controlled foreign corporation is an
indirect pledge of the assets of that
corporation. See §1.956–2(c)(2).
18.Section 985.—Functional Cur-
rency.—Whether a currency is the
functional currency of a qualified busi-
ness unit.
19.Section 989(a).—Qualified Busi-
ness Unit.—Whether a unit of the
taxpayer’s trade or business is a
qualified business unit.
20.Section 1058.—Transfers of Se-
curities under Certain Agreements.—
Whether the amount of any payment
described in § 1058(b)(2) or the
amount of any other payment made in
connection with a transfer of securities
described in §1058 is from sources
within or without the United States; the
character of such amounts; and whether
the amounts constitute a particular kind

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of income for purposes of any United
States income tax treaty.
21. Section 2501.—Imposition of
Tax.—Whether a partnership interest is
intangible property for purposes of
§ 2501(a)(2) (dealing with transfers of
intangible property by a nonresident
not a citizen of the United States).
22.Section 7701.—Tax on Nonresi-
dent Alien Individuals.—Whether an
alien individual is either a resident or a
nonresident of the United States, in
situations where the determination de-
pends on facts that cannot be con-
firmed until the close of the taxable
year (including, for example, the length
of the alien’s stay or the nature of the
alien’s activities).
23. Section 7701.—Definitions.—
Whether what is generally known as a
foreign corporation will be classified as
a partnership for United States tax
purposes, if the taxpayer requests clas-
sification as a partnership; and whether
a foreign partnership will be classified
as an association for United States tax
purposes, if the taxpayer requests clas-
sification as an association. Requests
for advance letter rulings about the
classification of foreign entities should
be submitted according to Rev. Proc.
95–1, this Bulletin. The Office of
Associate Chief Counsel (Domestic)
coordinates the response to such re-
quests with the Office of Associate
Chief Counsel (International).
24. Section 7701.—Definitions.—
Whether an estate or trust is a foreign
estate or trust for federal income tax
purposes.
25. Section 7701.—Definitions.—
Whether an intermediate entity is a
conduit entity under section §1.881–
3(a)(4); whether a transaction is a
financing transaction under section
§1.881–3(a)(ii); whether the participa-
tion of an intermediate entity in a
financing arrangement is pursuant to a
tax avoidance plan under section
§1.881–3(b); whether an intermediate
entity performs significant financing
activities under section §1.881–3(b)-
(3)(ii); whether an unrelated intermedi-
ate entity would not have participated
in a financing arrangement on substan-
tially the same terms under section
§1.881–3(c).
.02General Areas
1.Whether a taxpayer has a business
p u r p o s e f o r a t r a n s a c t i o n o r
arrangement.
2. (a)Situations where a taxpayer or
a related party is domiciled or orga-
nized in a foreign jurisdiction with
which the United States does not have
an effective mechanism for obtaining
tax information with respect to civil tax
examinations and criminal tax inves-
tigations, which would preclude the
Service from obtaining information lo-
cated in such jurisdiction that is rele-
vant to the analysis or examination of
the tax issues involved in the ruling
request.
(b) The provisions of subsection
4.02.2(a) above shall not apply if the
taxpayer or affected related party (i)
consents to the disclosure of all rele-
vant information requested by the
Service in processing the ruling request
or in the course of an examination to
verify the accuracy of the representa-
tions made and to otherwise analyze or
examine the tax issues involved in the
ruling request, and (ii) waives all
claims to protection of bank or com-
mercial secrecy laws in the foreign
jurisdiction with respect to the informa-
tion requested by the Service. In the
event the taxpayer’s or related party’s
consent to disclose relevant information
or to waive protection of bank or
commercial secrecy is determined by
the Service to be ineffective or of no
force and effect, then the Service may
retroactively rescind any ruling ren-
dered in reliance on such consent.
SEC. 5. EFFECT ON OTHER
REVENUE PROCEDURES
Rev. Proc. 95–7 is superseded.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Gerard Traficanti of the
Office of Associate Chief Counsel
(International). For further information
about this revenue procedure, please
contact Mr. Traficanti at (202)
622-3830 (not a toll-free number).
26 CFR 601.201: Rulings and determination
letters.
Rev. Proc. 96–8
TABLE OF CONTENTS
SECTION 1. PURPOSE
SECTION 2. CHANGES
SECTION 3. BACKGROUND
.01Legislation authorizing user fees
.02Related revenue procedures
SECTION 4. SCOPE
.01Requests to which a user fee
applies
.02Requests to which a user fee does
not apply
.03Exemptions from the user fee
requirements
SECTION 5. DEFINITIONS
SECTION 6. FEE SCHEDULE
.01 Employee plans letter ruling
requests
.02Requests for certain administrative
exemptions
.03Administrative scrutiny determina-
tions with respect to separate lines
of business
.04Opinion letters and advisory letters
on master and prototype plans
.05Notification letters issued by Head-
quarters Office of the Service on
mass submitter regional prototype
plans
.06Opinion letters on prototype indi-
vidual retirement accounts and/or
annuities and simplified employee
pensions, including salary reduc-
tion SEPs (SARSEPS)
.07Compliance statements under VCR
program
.08Correction statements under TVC
program
.09 Employee plans determination
letters
.10Advisory letters on volume submit-
ter plans
.11Notification letters issued by key
district offices with respect to
regional prototype plans
.12Exempt organizations letter rulings
.13Exempt organizations determina-
tion letters and requests for group
exemption letters
SECTION 7. MAILING ADDRESS FOR
REQUESTING LETTER RULINGS,
DETERMINATION LETTERS, ETC.
.01Matters handled by the Headquar-
ters Office of the Service
.02Matters handled by key district
offices.
SECTION 8. REQUESTS INVOLVING
MULTIPLE OFFICES, FEE CATEGORIES,
ISSUES, TRANSACTIONS, OR ENTITIES

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.01Requests involving several offices
.02 Requests involving several fee
categories
.03Requests involving several issues
.04Requests involving several unre-
lated transactions
.05Requests for separate letter rulings
for several entities
SECTION 9. PAYMENT OF FEE
.01Method of payment
.02Transmittal forms
.03Effect of nonpayment or payment
of incorrect amount
SECTION 10. REFUNDS
.01General rule
.02Examples
SECTION 11. REQUEST FOR
RECONSIDERATION OF USER FEE
SECTION 12. EFFECT ON OTHER
DOCUMENTS
SECTION 13. EFFECTIVE DATE
APPENDIX
SECTION 1. PURPOSE
This revenue procedure provides
guidance for complying with the user
fee program of the Internal Revenue
Service as it pertains to requests for
letter rulings, determination letters, etc.
on matters under the jurisdiction of the
Assistant Commissioner (Employee
Plans and Exempt Organizations); re-
quests for compliance statements under
the Voluntary Compliance Resolution
(VCR) program and the Standardized
VCR Procedure (SVP) described in
Rev. Proc. 94–62, 1994–2 C.B. 778;
requests for correction statements under
the Tax Sheltered Annuity Voluntary
Correction Program (TVC program)
described in Rev. Proc. 95–24, 1995–1
C.B. 694; and requests for administra-
tive scrutiny determinations under Rev.
Proc. 93–41, 1993–2 C.B. 536. The
user fee program as it pertains to
requests for letter rulings, etc. on
matters under the jurisdiction of the
Associate Chief Counsel (Domestic),
the Associate Chief Counsel (Employee
Benefits and Exempt Organizations),
the Associate Chief Counsel (Enforce-
ment Litigation), and the Associate
Chief Counsel (International) is set
forth separately in Rev. Proc. 96–1.
SECTION 2. CHANGES
The principal changes are as follows:
(1) The fee schedule has been revised
by increasing many of the fees to
reflect current costs; (2) a reduced user
fee has been provided for in the case of
certain substantially identical letter rul-
ing requests; (3) an augmented fee has
been provided for in the case in which
the letter ruling requested involves
several entities controlled by or associ-
ated with the entity requesting the letter
ruling; (4) the correction fees applica-
ble to requests for correction statements
under the TVC program described in
Rev. Proc. 95–24, 1995–1 C.B. 694,
have been incorporated; (5) a separate
user fee category, with a fee of $2,100,
has been established for letter rulings
involving the determination of the
account limit under §419A(c); (6) the
user fees applicable to applications for
approval of nonmodel amendments to
permit use of a simplified method of
d e t e r m i n i n g h i g h l y c o m p e n s a t e d
employees (‘‘HCEs’’) under §414(q)
pursuant to the procedures described in
Rev. Proc. 95–34, 1995–29 I.R.B. 7,
has been incorporated; and (7) the user
fee applicable to master and prototype
and regional prototype plan mass sub-
mitters has been changed so that,
instead of one fee for each basic plan
document regardless of the number of
adoption agreements, the fee is now
applicable to the basic plan document
with one adoption agreement, and an
additional fee, of $700, must be paid
for each adoption agreement if more
than one adoption agreement is submit-
ted with the basic plan document.
SECTION 3. BACKGROUND
.01Legislation authorizing user fees.
§ 10511 of the Revenue Act of 1987,
Public Law No. 100–203, 101 Stat.
1330–382, 1330–446, enacted Decem-
ber 22, 1987, directed the Secretary of
the Treasury or delegate (the ‘‘Secre-
tary’’) to establish a program requiring
the payment of user fees for requests to
the Service for letter rulings, opinion
letters, determination letters, and simi-
lar requests. The fees were to apply to
requests made on or after February 1,
1988, and before September 30, 1990.
§ 11319 of the Omnibus Budget Rec-
onciliation Act of 1990, Pub. L. 101–
508, 1991–2 C.B. 481, 511, enacted
November 5, 1990, amended subsection
(c) of §10511 of the Revenue Act of
1987 so as to make the user fees
applicable to requests made after Sep-
tember 30, 1990, and before October 1,
1995. §743 of the Uruguay Round
Agreements Act, Pub. L. 103–465,
1995–1 C.B. 230, 239, enacted Decem-
ber 8, 1994, amended subsection (c) of
§ 10511 of the Revenue Act of 1987
by making the user fees applicable to
requests made after September 30,
1990, and before October 1, 2000. The
fees charged under the program (1) are
to vary according to categories or
subcategories established by the Secre-
tary; (2) are to be determined after
taking into account the average time
for, and difficulty of, complying with
requests in each category and sub-
category; and (3) are to be payable in
advance. The Secretary is to provide
for exemptions and reduced fees under
the program as the Secretary deter-
mines to be appropriate, but the aver-
age fee applicable to each category
must not be less than the amount
specified in the statute.
.02Related revenue procedures. The
various revenue procedures that require
payment of a user fee, a voluntary
compliance fee under the VCR program
or the SVP, a voluntary correction fee
under the TVC program, or an admin-
istrative scrutiny determination user fee
are described in the appendix to this
revenue procedure.
SECTION 4. SCOPE
.01Requests to which a user fee
applies. In general, user fees apply to
all requests for letter rulings, opinion
letters, notification letters, determina-
tion letters, and advisory letters submit-
ted by or on behalf of taxpayers,
sponsoring organizations or other en-
tities as described in this revenue
procedure. Voluntary compliance fees
applicable to requests under the VCR
program or the SVP described in Rev.
Proc. 94–62, voluntary correction fees
applicable to requests under the TVC
program described in Rev. Proc. 95-24,
and administrative scrutiny determina-
tion user fees described in Rev. Proc.
93–41, are collected through the user
fee program described in this revenue
procedure. Requests to which a user
fee, a voluntary compliance fee, a
voluntary correction fee, or an admin-
istrative scrutiny determination user fee
is applicable must be accompanied by
the appropriate fee as determined from
the fee schedule set forth in section 6
of this revenue procedure. The fee may
be refunded as set forth in section 10.

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.02Requests to which a user fee
does not apply. User fees do not apply
to:
(1)Submissions with respect to the
model amendment described in section 6
of Rev. Proc. 93–12, 1993–1 C.B. 479.
(2)Submissions with respect to the
model amendment described in Rev.
Proc. 93–47, 1993–2 C.B. 578.
(3)Elections made pursuant to sec-
tion 4 of Rev. Proc. 92–85, 1992–2
C.B. 490, pertaining to automatic ex-
tensions of time under §301.9100–1.
(4)Form 5305, Individual Retire-
ment Trust Account. This model trust
form may be used by an individual
who wishes to adopt an individual
retirement account under §408(a) of
the Internal Revenue Code. It should
not be filed with the Service.
(5)Form 5305–A, Individual Retire-
ment Custodial Account. This model
custodial account form may be used by
an individual who wishes to adopt an
individual retirement account under
§ 408(a). It should not be filed with the
Service.
(6)Requests for information letters.
(7)Change in accounting period or
accounting method permitted to be
made by a published automatic change
revenue procedure.
.03Exemptions from the user fee
requirements. The user fee require-
ments do not apply to:
(1)Departments, agencies, or instru-
mentalities of the United States that
certify that they are seeking a letter
ruling, determination letter, opinion
letter or similar letter on behalf of a
program or activity funded by federal
appropriations. The fact that a user fee
is not charged has no bearing on
whether an applicant is treated as an
agency or instrumentality of the United
States for purposes of any provision of
the Code.
(2)Requests as to whether a worker
is an employee for federal employment
taxes and income tax withholding
purposes (chapters 21, 22, 23, and 24
of subtitle C of the Code) submitted on
Form SS–8, Information for Use in
Determining Whether a Worker is an
Employee for Federal Employment
Taxes and Income Tax Withholding, or
its equivalent. Such a request may be
submitted in connection with an ap-
plication for a determination on the
qualification of a plan when it is
necessary to determine whether an
employer-employee relationship exists.
See section 6.12 of Rev. Proc. 96–6,
page 160, this bulletin. In that case,
although no user fee applies to the
request submitted on Form SS–8, the
applicable user fee must be paid in
connection with the application for
d e t e r m i n a t i o n o n t h e p l a n ’ s
qualification.
(3)Requests for an opinion letter or
a notification letter with respect to an
amendment of a previously approved
master or prototype plan or a pre-
viously approved regional prototype
plan, where the plan is being amended
only to the extent necessary to meet the
requirements of section 3 of Rev. Proc.
93–10, 1993–1 C.B. 476 (relating to
nonstandardized safe harbor plans).
SECTION 5. DEFINITIONS
The following terms used in this
revenue procedure are defined in the
pertinent revenue procedures referred to
below, which are described in the
appendix:
Administrative scrutiny determinationRev. Proc. 93–41
Adoption agreementRev. Procs. 89–9, 89–13
Advisory letterRev. Procs. 89–9, 96–6
Basic plan documentRev. Procs. 89–9, 89–13
Compliance statementRev. Proc. 94–62
Correction statementRev. Proc. 95–24
Determination letterRev. Procs. 90–27, 96–6
Group exemption letterRev. Proc. 80–27
Information letterRev. Proc. 96–4
Letter rulingRev. Proc. 96–4
Mass submitterRev. Procs. 89–9, 89–13, 87–50
Mass submitter planRev. Proc. 89–9
Mass submitter regional prototype planRev. Proc. 89–13
Master planRev. Proc. 89–9
Minor modificationRev. Proc. 89–9, 87–50
Notification letterRev. Proc. 89–13, 96–4
Opinion letterRev. Proc. 89–9, 96–4
Prototype planRev. Proc. 89–9
Regional prototype planRev. Proc. 89–13
SponsorRev. Proc. 89–13
Sponsoring organizationRev. Proc. 89–9, 90–21
Standardized VCR Program (SVP)Rev. Proc. 94–62
Voluntary Compliance Resolution (VCR) programRev. Proc. 94–62
Tax-Sheltered Annuity Voluntary Correction
(TVC) programRev. Proc. 95–24
Volume submitter planRev. Proc. 96–6
Volume submitter specimen planRev. Proc. 96–6
Word-for-word identical adoptionRev. Proc. 89–9, 87–50

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SECTION 6. FEE SCHEDULE
The amount of the user fee payable with respect to each category or subcategory of submission is as set forth in the
following schedule.
EMPLOYEE PLANS CATEGORYFEE
.01Employee plans letter ruling requests.
(1)Computation of exclusion for annuitant under §72$75
(2)Change in plan year (Form 5308)$150
NOTE: No user fee is required if the requested change is permitted to be made pursuant to the procedure for
automatic approval set forth in Rev. Proc. 87–27, 1987–1 C.B. 769.
(3)Change in funding method$400
(4)Approval to become a nonbank trustee (see §1.401–12(n) of the Income Tax Regulations)$3,000
(5)Waiver of minimum funding standard, under §412(d):
(a)Waiver of $1,000,000 or more$3,500
(b)Waiver of less than $1,000,000$1,500
(6)Letter ruling under Rev. Proc. 90–49, 1990–2 C.B. 620$200
(7)Letter ruling involving the determination of the account limit under § 419A(c)$2,100
(8)Individually designed simplified employee pension (SEP)$2,100
(9)Nonmodel amendment of individually designed SEP pursuant to the amendment procedures described in
Rev. Proc. 94–13, to comply with the requirements of §401(a)(17)$400
(10)Nonmodel amendment of individually designed SEP to use simplified method of determining HCEs
pursuant to the procedures described in Rev. Proc. 95–34$400
NOTE: A single submission for Service approval may be made for plan amendments to include the simplified
method of determining HCEs pursuant to the limited amendment procedures contained in sections 5(A) through
5(E) of Rev. Proc. 95–34 and to include plan language required under §401(a)(31) pursuant to the limited
amendment procedures contained in sections 7 through 10 of Rev. Proc. 93–12, and to reflect the OBRA ’93
changes to §401(a)(17) pursuant to the limited amendment procedures contained in section E of Part IV of Rev.
Proc. 94–13. In such a case, only one application and the user fee for a single amendment need be submitted. See
section 6 of Rev. Proc. 95–34.
(11)All other letter rulings$2,100
Reduced fees, or augmented fee, applicable to all other letter rulings:
(a)Letter ruling requests by or on behalf of eligible retirement plans (within the meaning of §402(c)(8)(B))
with assets of less than $150,000$600
(b)Letter ruling requests from U.S. citizens and resident alien individuals, domestic trusts, and domestic estates
whose ‘‘total income’’ as reported on their federal income tax return (as amended) filed for a full (12 months)
taxable year ending before the date the request is filed, plus any interest income not subject to tax under §103
(interest on state and local bonds) for that period, is less than $150,000$600
NOTE: The reduced fee applies to a married individual if the combined gross income of the applicant and the
applicant’s spouse is less than $150,000. The gross incomes of the applicant and the applicant’s spouse are not
combined, however, if the applicant is legally separated from his or her spouse and the spouses do not file a joint
income tax return with each other. In the case of a letter ruling request from a domestic estate or trust that, at the
time the request is filed, has not filed an income tax return for a full taxable year, the reduced fee will be
applicable if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the
last return filed for a full taxable year ending before the date of death or the date of the transfer, taking into
account any additions required to be made to total income described in this subparagraph, is less than $150,000.
(c)Letter ruling requests from organizations exempt from income tax under ‘‘Subchapter F-Exempt
Organizations’’ with gross receipts of less than $150,000$600
NOTE: An organization exempt from income tax under Subchapter F must certify in its request for a letter ruling
that its gross receipts for the last full taxable year before the request was filed were less than $150,000.
(d)In situations in which a taxpayer requests substantially identical letter rulings for multiple entities with a
common member or sponsor, or for multiple members of a common entity, each additional letter ruling request
after the $2,100 fee or $600 fee, as appropriate, has been paid for the first letter ruling$200
(e)In situations in which a taxpayer requests a single letter ruling involving substantially identical issues of
fact and law with respect to multiple members of a common entity, for each additional entity after the $2,100 fee
or $600 reduced fee, as applicable, has been paid for the first entity$200

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.02Requests for certain administrative exemptions.
Requests for administrative exemptions for participant-directed transactions that are in compliance with the
regulations under §404(c) of the Employee Retirement Income Security Act of 1974 (ERISA) but may result in
prohibited transactions under §4975$2,100
NOTE: The provisions of Rev. Proc. 75–26, 1975–1 C.B. 722, are applicable to such requests.
.03Administrative scrutiny determinations with respect to separate lines of business.
(1)For the first separate line of business for which a determination is requested$3,250
(2)For each additional separate line of business for which a determination is requested$1,000
.04Opinion letters and advisory letters on master and prototype plans.
(1)Mass submitter M & P plan, per basic plan document, new or amended, with one adoption agreement$3,600
(2)Mass submitter M & P plan, per each additional adoption agreement$700
(3)Sponsoring organization’s word-for-word identical adoption of M & P mass submitter’s basic plan
document (or an amendment thereof), per adoption agreement$100
NOTE 1: Mass submitters that are sponsoring organizations in their own right are liable for this fee.
NOTE 2: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applications on
behalf of word-for-word adopters with respect to a particular adoption agreement, only the first 300 such
applications will be subject to the fee; no fee will apply to those in excess of the first 300 such applications
submitted within the 12-month period.
(4)Sponsoring organization’s minor modification of M & P mass submitter’s plan document, per adoption
agreement$400
(5)Nonmass submission (new or amended) by M & P sponsoring organization, per basic plan document$3,000
(6)M & P mass submitter’s request for an advisory letter with respect to the addition of optional provisions
following issuance of a favorable opinion letter (see section 18.031(c) of Rev. Proc. 89–9), per basic plan
document (regardless of the number of adoption agreements)$400
(7)M & P mass submitter’s addition of new adoption agreements after the basic plan document and associated
adoption agreements have been approved, per adoption agreement$700
(8)Assumption of sponsorship of an approved M & P plan, without any amendment to the plan document, by
a new entity, as evidenced by a change of employer identification number$200
(9)Adoption, by M & P sponsoring organization or M & P mass submitter, of nonmodel amendment pursuant
to the limited amendment procedure described in Rev. Proc. 93–12, to comply with the requirements of
§ 401(a)(31)$400
(10)Adoption, by M & P sponsoring organization or M & P mass submitter, of nonmodel amendment pursuant
to the amendment procedures described in Rev. Proc. 94–13, to comply with the requirements of §401(a)(17)$400
(11)Adoption, by M & P sponsoring organization or M & P mass submitter (other than an identical adopter of
an M & P mass submitter plan), of nonmodel amendment to use simplified method of determining HCEs pursuant
to the procedures described in Rev. Proc. 95–34$400
NOTE 1: Only one user fee is required for all plans submitted simultaneously by each sponsor, regardless of the
number of plans affected.
NOTE 2: See note at section 6.01(10) of this revenue procedure.
.05Notification letters issued by Headquarters Office of the Service on mass submitter regional prototype
plans.
(1)Mass submitter regional prototype plan, per basic plan document, new or amended, with one adoption
agreement$3,600
(2)Mass submitter regional prototype plan, per each additional adoption agreement$700
NOTE: Separate notification letters are required for sponsors utilizing mass submitter regional prototype plans.
Such notification letters are issued by key district offices. The applicable user fee is set forth in section 6.11(1) of
this revenue procedure.
(3)Regional prototype plan mass submitter’s addition of new adoption agreements after the basic plan
document and associated adoption agreements have been approved, per adoption agreement$700
(4)Regional prototype plan mass submitter’s adoption of nonmodel amendment pursuant to the limited
amendment procedure described in Rev. Proc. 93–12, to comply with the requirements of §401(a)(31) (Form
4461 or 4461–A)$200
(5)Regional prototype plan mass submitter’s adoption of nonmodel amendment pursuant to the amendment
procedures described in Rev. Proc. 94–13, to comply with the requirements of §401(a)(17)$200

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(6)Regional prototype plan mass submitter’s adoption of nonmodel amendment to use simplified method of
determining HCEs pursuant to the procedures described in Rev. Proc. 95–34$200
NOTE: See the note at section 6.01(10) of this revenue procedure.
.06Opinion letters on prototype individual retirement accounts and/or annuities and simplified employee
pensions, including salary reduction SEPs (SARSEPS).
(1)Mass submission of a prototype IRA or SEP, per plan document, new or amended$1,000
(2)Sponsoring organization’s word-for-word identical adoption of mass submitter’s prototype IRA or SEP, per
plan document or an amendment thereof$100
NOTE: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applications on
behalf of word-for-word adopters with respect to a particular adoption agreement, only the first 300 such
applications will be subject to the fee; no fee will apply to those in excess of the first 300 such applications
submitted within the 12-month period.
(3)Sponsoring organization’s minor modification of mass submitter’s prototype IRA or SEP, per plan
document$200
(4)Sponsoring organization’s nonmass submission of prototype IRA or SEP (new or amended), per plan
document (Form 5306 or Form 5306–SEP)$500
(5)Amendment of an approved prototype SEP or SARSEP by a mass submitter, an identical adopter, or other
sponsoring organization solely by the adoption of the Model Amendment reproduced in the Appendix to Rev.
Proc. 91–44, per plan document$100
(6)Adoption, by prototype SEP sponsor or SEP mass submitter, of nonmodel amendment pursuant to the
alternative amendment procedures described in Rev. Proc. 94–13, to comply with the requirements of §401(a)(17)$200
(7)Adoption, by prototype SEP sponsor or SEP mass submitter, of nonmodel amendment to use simplified
method of determining HCEs pursuant to the procedures described in Rev. Proc. 95–34$200
NOTE 1: See the note at section 6.01(10) of this revenue procedure.
NOTE 2: See Note 1 at section 6.04(11) of this revenue procedure.
.07Compliance statements under VCR program.
(1)Request for a compliance statement under the VCR program:
(a)For a plan with assets of less than $500,000, and no more than 1,000 plan participants$500
(b)For a plan with assets of at least $500,000, and no more than 1,000 plan participants$1,250
(c)For a plan with more than 1,000 plan participants but less than 10,000 plan participants$5,000
(d)For a plan with 10,000 or more plan participants$10,000
NOTE: In establishing the number of plan participants, the plan sponsor will use the numbers from the most
recently filed Form 5500 series.
(2)Request for a compliance statement under the SVP$350
.08Correction statements under TVC program.
(1)Request for a correction statement under the TVC program:
(a)For an employer with fewer than 25 employees$350
(b)For an employer with at least 25 and no more than 1,000 employees$1,250
(c)For an employer with more than 1,000 employees but less than 10,000 employees$5,000
(d)For an employer with 10,000 or more employees$10,000
.09Employee plans determination letters.
(1)If the plan is intended to satisfy a design-based or nondesign-based safe harbor, or if the applicant is not
electing to receive a determination with respect to any of the general tests, and the applicant is not electing to
receive a determination with respect to the average benefit test:
(a) Form 5300$700
(b) Form 5303$700
(c) Form 5310$225
(d) Form 5307$125
(e) Form 6406$125
(f) Multiple employer plan:
(i) 2 to 10 employers$700
(ii) 11 to 99 employers$1,400

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(iii) 100 to 499 employers$2,800
(iv) Over 499 employers$5,600
NOTE: In the case of a multiple employer plan that is adopted by other employers after the initial submission, the
fee would be the same as in paragraph (1) above. If only one employer adopts the plan in any subsequent year,
the fee would be $700.
(2)If the applicant is electing to receive a determination with respect to the average benefit test and/or any of
the general tests:
(a) Form 5300 or Form 5303$1,250
(b) Form 5307$1,000
(c) Form 5310$375
(d) Multiple employer plan:
(i) 2 to 10 employers$1,250
(ii) 11 to 99 employers$2,000
(iii) 100 to 499 employers$3,500
(iv) Over 499 employers$6,500
NOTE: In the case of a multiple employer plan that is adopted by other employers after the initial submission, the
fee would be the same as in paragraph (2) above. If only one employer adopts the plan in any subsequent year,
the fee would be $1,250.
(3)Group trusts contemplated by Rev. Rul. 81–100, 1981–1 C.B. 326$750
(4)Adoption of nonmodel amendment by employer maintaining an individually designed plan, pursuant to the
limited amendment procedure described in Rev. Proc. 93–12, to comply with §401(a)(31) of the Code (Form
6406)$125
(5)Adoption of nonmodel amendment by employer that has previously adopted a volume submitter’s specimen
plan and wishes to utilize the version of the specimen plan that includes a nonmodel amendment pursuant to the
limited amendment procedure described in Rev. Proc. 93–12, to comply with §401(a)(31) (Form 5307)$125
(6)Adoption of nonmodel amendment by employer maintaining an individually designed plan, pursuant to the
alternative amendment procedures described in Rev. Proc. 94–13, to comply with the requirements of §401(a)(17)$125
(7)Adoption of nonmodel amendment by employer that has previously adopted a volume submitter’s specimen
plan and wishes to utilize the version of the specimen plan that includes a nonmodel amendment pursuant to the
alternative amendment procedures described in Rev. Proc. 94–13, to comply with the requirements of §401(a)(17)$125
(8)Adoption of nonmodel amendment by employer that maintains an individually designed plan, including a
previously approved volume submitter plan, to include simplified method of determining HCEs pursuant to the
procedures described in Rev. Proc. 95–34$125
NOTE: See the note at section 6.01(10) of this revenue procedure.
(9)Adoption of nonmodel amendment by employer that has previously adopted a volume submitter’s specimen
plan and wishes to utilize the version of the specimen plan that includes a nonmodel amendment to use simplified
method of determining HCEs pursuant to the procedures described in Rev. Proc. 95–34$125
NOTE: See the note at section 6.01(10) of this revenue procedure.
.10 Advisory letters on volume submitter plans.
(1)Volume submitter specimen plans$1,500
NOTE: A practitioner that has received approval of a volume submitter specimen plan in a key district office
must receive separate approval of the plan from each other key district office in which there are clients adopting
substantially similar plans. If the practitioner certifies at the time of filing with the second key district office that
the specimen plan is identical to a specimen plan approved by another key district office with respect to that
practitioner and attaches a copy of that office’s advisory letter, then the user fee that would otherwise be charged
for the specimen plan will not be charged.
(2)Adoption, by sponsor of volume submitter specimen plan, of nonmodel amendment pursuant to the limited
amendment procedure described in Rev. Proc. 93–12, to comply with the requirements of §401(a)(31)$400
(3)Adoption, by sponsor of volume submitter specimen plan, of nonmodel amendment pursuant to the
alternative amendment procedures described in Rev. Proc. 94–13, to comply with the requirements of
§ 401(A)(17)$400
(4)Adoption, by sponsor of volume submitter specimen plan, of nonmodel amendment to use simplified
method of determining HCEs pursuant to the procedures described in Rev. Proc. 95–34$400
NOTE: See the note at section 6.01(10) of this revenue procedure.

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.11Notification letters issued by key district offices with respect to regional prototype plans.
(1)Sponsor’s identical adoption of mass submitter’s regional prototype plan basic plan document, per adoption
agreement (Form 4461–B)$100
NOTE: Mass submitters that are sponsors in their own right are liable for this fee.
(2)Sponsor’s nonmass submission of regional prototype plan, per adoption agreement (Form 4461 or 4461–A)$1,500
(3)Adoption, by sponsor of regional prototype plan, of nonmodel amendment pursuant to the limited
amendment procedure described in Rev. Proc. 93–12, to comply with the requirements of §401(a)(31) (Form
4461 or 4461–A)$400
(4)Adoption, by sponsor of regional prototype plan, of nonmodel amendment pursuant to the alternative
amendment procedures described in Rev. Proc. 94–13, to comply with the requirements of §401(a)(17)$400
(5)Adoption, by sponsor of regional prototype plan, of nonmodel amendment to use simplified method of
determining HCEs pursuant to the procedures described in Rev. Proc. 95–34$400
NOTE: See the note at section 6.01(10) of this revenue procedure.
EXEMPT ORGANIZATIONS CATEGORYFEE
.12Exempt organizations letter rulings.
(1)Applications with respect to change in accounting period (Form 1128)$100
NOTE: No user fee is charged if the procedure described in Rev. Proc. 85–58, 1985–2 C.B. 740, is used by
timely filing the appropriate information return, or if the procedure described in Rev. Proc. 76–10, 1976–1 C.B.
548, for organizations with group exemptions is followed.
(2)Applications with respect to change in accounting method (Form 3115)$100
NOTE: No user fee is charged if the method described in Rev. Proc. 92–74, 1992–2 C.B. 442, or that described in
Rev. Proc. 92–75, 1992–2 C.B. 448, is used. Taxpayers complying timely with whichever of those revenue
procedures is applicable will be deemed to have obtained the consent of the Commissioner of Internal Revenue to
change their method of accounting.
(3)Advance approval of scholarship grant-making procedures of a private foundation that has an agreement for
the administration of the scholarship program with the National Merit Scholarship Corp., or similar organization
administering a scholarship program shown to meet Service requirements$100
(4)Request for a letter ruling as to whether an organization exempt from federal income tax is required to file
an annual return under §6033$200
NOTE 1: See Rev. Proc. 95–48, 1995–47 I.R.B. 13, which specifies that governmental units and affiliates of
governmental units that are exempt from federal income tax under §501(a) are not required to file annual
information returns on Form 990, Return of Organization Exempt from Income Tax.
NOTE 2: There is no additional charge for a determination of §6033 requirement from an organization seeking
recognition of exempt status under §501 if the organization submits the information required by line 9 of Part I
of Form 1023, Application for Recognition of Exemption under Section 501(c)(3) of the Code, or submits a
separate written request with its application for recognition of exemption. Only the user fee for the initial
application for recognition of exemption applies.
(5)Request for a confirmation letter dealing with private benefit/inurement issues on the tax-exempt status of
the organization arising from proposed tax-exempt bond financing$600
(6)All other letter rulings$2,100
Reduced fees applicable to all other letter rulings:
(a)Organizations with gross receipts less than $150,000$600
NOTE: An exempt organization seeking a reduced fee must certify in the letter ruling request that its gross
receipts for the last taxable year before the request is filed were less than $150,000.
(b)Letter ruling requests from U.S. citizens and resident alien individuals, domestic trusts, and domestic estates
whose ‘‘total income’’ as reported on their federal income tax return (as amended) filed for a full (12 months)
taxable year ending before the date the request is filed, plus any interest income not subject to tax under §103
(interest on state and local bonds) for that period, is less than $150,000$600
NOTE: The reduced fee applies to a married individual if the combined gross income of the applicant and the
applicant’s spouse is less than $150,000. The gross incomes of the applicant and the applicant’s spouse are not
combined, however, if the applicant is legally separated from his or her spouse and the spouses do not file a joint
income tax return with each other. In the case of a letter ruling request from a domestic estate or trust that, at the
time the request is filed, has not filed an income tax return for a full taxable year, the reduced fee will be
applicable if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the
last return filed for a full taxable year ending before the date of death or the date of the transfer, taking into
account any additions required to be made to total income described in this subparagraph, is less than $150,000.

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(c)Letter ruling requests in which a taxpayer requests substantially identical letter rulings for multiple entities
with a common member or activity, or multiple members of a common entity, for each additional letter ruling
request after the $2,100 fee or $600 reduced, as applicable, has been paid for the first letter ruling request$200
.13Exempt organizations determination letters and requests for group exemption letters.
(1)Initial application for exemption under §501 or §521 from organizations (other than pension, profit-
sharing, and stock bonus plans described in §401) that have had annual gross receipts averaging not more than
$10,000 during the preceding four years, or new organizations that anticipate gross receipts averaging not more
than $10,000 during their first four years$150
NOTE: Organizations seeking this reduced fee must sign a certification with their application that the receipts are
or will be not more than the indicated amounts.
(2)Initial application for exempt status from organizations otherwise described in paragraph (1) of this section
6.13 whose actual or anticipated gross receipts exceed the $10,000 average annually$465
NOTE: If an organization that is already recognized as exempt under §501(c) seeks reclassification under another
subparagraph of §501(c), a new user fee will be charged whether or not a new application is required. An
additional fee applies to organizations that seek recognition of exemption under §501(c)(4) (unless requested at
the time of the §501(c)(3) application) for a period for which they do not qualify for exemption under
§ 501(c)(3) because their application was filed late and they do not qualify for relief under §301.9100–1.
(3)Group exemption letters$500
SECTION 7. MAILING ADDRESS FOR
REQUESTING LETTER RULINGS,
DETERMINATION LETTERS, ETC.
.01Matters handled by the Head-
quarters Office of the Service. Requests
should either be mailed to the appropri-
ate address set forth in this section
7.01, or hand delivered to the drop box
at the 12th Street entrance of 1111
Constitution Avenue, N.W., Wash-
ington, D.C. No dated receipt will be
given at the drop box.
(1)Employee plans letter rulings
under Rev. Proc. 78–37, 79–61, 79–62,
87–50, 90–49, 94–41, 94–42 or 96–4:
Internal Revenue Service
Attention: CP:E:EP
P.O. Box 14073, Ben Franklin
Station
Washington, D.C. 20044
(2)Employee plans opinion letters,
advisory letters, or notification letters
(that is, notification letters with respect
to mass submitters’ regional prototype
plans) under Rev. Proc. 89–9, 89–13 or
96–4:
Internal Revenue Service
Attention: CP:E:EP
P.O. Box 14073, Ben Franklin
Station
Washington, D.C. 20044
(3)Employee plans compliance
statements under Rev. Proc. 94–62:
Internal Revenue Service
Attention: CP:E:EP:VCR
P.O. Box 14073
Ben Franklin Station
Washington, D.C. 20044
(4)Employee plans correction state-
ments under Rev. Proc. 95–24:
Internal Revenue Service
Attention: CP:E:EP:TVC
P.O. Box 14073
Ben Franklin Station
Washington, D.C. 20044
(5)Employee plans administrative
scrutiny determinations under Rev.
Proc. 93–41:
Internal Revenue Service
Attention: CP:E:EP
ADMINISTRATIVE SCRUTINY
P.O. Box 14073
Ben Franklin Station
Washington, D.C. 20044
(6)Exempt organizations letter
rulings:
Internal Revenue Service
Attention: CP:E:EO
P.O. Box 120, Ben Franklin
Station
Washington, D.C. 20044
.02Matters handled by key district
offices. A request for a determination
letter submitted pursuant to Rev. Proc.
92–24 or 96–6, a request for a notifica-
tion letter submitted pursuant to Rev.
Proc. 89–13 (other than with respect to
a mass submitter’s regional prototype
plan), a request for an advisory letter
with respect to a volume submitter
specimen plan, or an application for
recognition of exemption submitted
pursuant to Rev. Proc. 90–27 should be
sent to the following address:

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EMPLOYEE PLANS APPLICATIONS
If entity is in:Send request for determination letter,
notification letter, or advisory letter to this
address:
Connecticut, Maine,
Massachusetts,
New Hampshire, New York,
Rhode Island, Vermont
Internal Revenue Service
EP/EO Division
P.O. Box 1680, GPO
Brooklyn, NY 11202
Delaware,
District of Columbia,
Maryland, New Jersey,
Pennsylvania, Virginia, any U.S.
possession or foreign country
Internal Revenue Service
EP/EO Division
P.O. Box 17288
Baltimore, MD 21203
Indiana, Kentucky,
Michigan, Ohio,
West Virginia
Internal Revenue Service
P.O. Box 192
Covington, KY 41012-0192
Arizona, Colorado,
Kansas, Oklahoma,
New Mexico, Texas,
Utah, Wyoming
Internal Revenue Service
EP/EO Division
Mail Code 4950 DAL
1100 Commerce Street
Dallas, TX 75242
Alabama, Arkansas,
Florida, Georgia,
Louisiana, Mississippi,
North Carolina, South Carolina,
Tennessee
Internal Revenue Service
EP/EO Division
P.O. Box 941
Atlanta, GA 30370
Alaska, California,
Hawaii, Idaho, Nevada,
Oregon, Washington
Internal Revenue Service
EP Application
EP/EO Division
McCaslin Industrial Park
2 Cupania Circle
Monterey Park, CA 91755-7406
Illinois, Iowa, Minnesota,
Missouri, Montana, Nebraska,
North Dakota, South Dakota,
Wisconsin
Internal Revenue Service
EP/EO Division
230 S. Dearborn DPN 20-6
Chicago, IL 60604
EXEMPT ORGANIZATIONS APPLICATIONS
If entity is in:Send request for determination
letter to this address:
Connecticut, Maine,
Massachusetts, New Hampshire,
New York, Rhode Island,
Vermont
Internal Revenue Service
EP/EO Division
P.O. Box 1680, GPO
Brooklyn, NY 11202
Delaware, District of Columbia,
Maryland, New Jersey,
Pennsylvania, Virginia, any U.S.
possession or foreign country
Internal Revenue Service
EP/EO Division
P.O. Box 17010
Baltimore, MD 21203
Indiana, Kentucky, Michigan,
Ohio, West Virginia
Internal Revenue Service
P.O. Box 192
Covington, KY 41012-0192
Arizona, Colorado, Kansas,
Oklahoma, New Mexico, Texas,
Utah, Wyoming
Internal Revenue Service
EP/EO Division
Mail Code 4950 DAL
1100 Commerce Street
Dallas, TX 75242

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Alabama, Arkansas, Florida,
Georgia, Louisiana, Mississippi,
North Carolina, South Carolina,
Tennessee
Internal Revenue Service
EP/EO Division
P.O. Box 941
Atlanta, GA 30370
Alaska, California, Hawaii,
Idaho, Nevada, Oregon,
Washington
Internal Revenue Service
EO Application
EP/EO Division
McCaslin Industrial Park
2 Cupania Circle
Monterey Park, CA 91755-7406
Illinois, Iowa, Minnesota,
Missouri, Montana, Nebraska,
North Dakota, South Dakota,
Wisconsin
Internal Revenue Service
EP/EO Division
230 S. Dearborn DPN 20-5
Chicago, IL 60604
NOTE: The preceding list does not reflect the reorganization of districts and regions pursuant to Treasury Order 150–01,
1995–44 I.R.B. 23, dated September 28, 1995. Previously, on January 28, 1995, the Commissioner of Internal Revenue
announced that the Service will centralize its employee plans and exempt organizations determination letter program in
Cincinnati, Ohio. The centralization will be phased in, one key district at a time, beginning in 1996. Announcement 95–51,
1995–25 I.R.B. 132, states that the Service will notify the public in advance of the phase in of each key district office. Until
such notice is given, employers and organizations should continue to submit their requests for determination letters to the
key district offices designated above.
SECTION 8. REQUESTS INVOLVING
MULTIPLE OFFICES, FEE CATEGORIES,
ISSUES, TRANSACTIONS, OR ENTITIES
.01Requests involving several of-
fices. If a request dealing with only one
transaction involves more than one of
the offices within the Headquarters
Office (for example, one issue is under
the jurisdiction of the Associate Chief
Counsel (Domestic) and another issue
is under the jurisdiction of the Assist-
ant Commissioner (Employee Plans and
Exempt Organizations)), only one fee
applies, namely the highest fee that
otherwise would apply to each of the
offices involved. See Rev. Proc. 96–1,
this bulletin, for the user fees applica-
ble to issues under the jurisdiction of
the Associate Chief Counsel (Domes-
tic), the Associate Chief Counsel
(Employee Benefits and Exempt Orga-
nizations), the Associate Chief Counsel
(Enforcement Litigation), or the Asso-
ciate Chief Counsel (International).
.02Requests involving several fee
categories. If a request dealing with
only one transaction involves more
than one fee category, only one fee
applies, namely the highest fee that
otherwise would apply to each of the
categories involved.
.03Requests involving several is-
sues. If a request dealing with only one
transaction involves several issues, or a
request for a change in accounting
method dealing with only one item or
sub-method of accounting involves sev-
eral 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, namely
the fee that applies to the particular
category or subcategory involved. The
addition of a new issue relating to the
same transaction will not result in an
additional fee, unless the issue places
the transaction in a higher fee category.
.04Requests involving several unre-
lated transactions. If a request involves
several unrelated transactions, or a
request for a change in accounting
method involves several unrelated
items or sub-methods 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 or item. An additional fee
will apply if the request is changed by
the addition of an unrelated transaction
or item not contained in the initial
submission.
.05Requests for separate letter rul-
ings for several entities. Each entity
involved in a transaction (for example,
an exempt hospital 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.
In certain situations, however, a re-
duced fee may be charged. See sections
6.01(11)(d) and (e) and 6.12(6)(c) of
this revenue procedure.
SECTION 9. PAYMENT OF FEE
.01Method of payment. Each request
to the Service for a letter ruling,
determination letter, opinion letter, etc.
must be accompanied by a check or
money order, payable to the Internal
Revenue Service, in the appropriate
amount. Taxpayers should not send
cash.
.02Transmittal forms. Form 8717,
User Fee for Employee Plan Deter-
mination Letter Request, and Form
8718, User Fee for Exempt Organiza-
tion Determination Letter Request, are
intended to be used as attachments to
determination letter applications. Space
is reserved for the attachment of the
applicable user fee check or money
order. No similar form has been
designed to be used in connection with
requests for letter rulings, opinion
letters, notification letters, advisory
letters, compliance statements, correc-
tion statements or administrative scru-
tiny determinations.
.03Effect of nonpayment or payment
of incorrect amount. It will be the
general practice of the Service that:
(1)Except in the case of requests for
determination letters or opinion letters
as to the qualification of employee
plans (see paragraph (2) below), the
respective offices within the Service
that are responsible for issuing letter
rulings, determination letters, etc. will
exercise discretion in deciding whether
to immediately return submissions that
are not accompanied by a properly
completed check or money order or

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that are accompanied by a check or
money order for less than the correct
amount. In those instances where the
submission is not immediately returned,
the requester will be contacted and
given a reasonable amount of time to
submit the proper fee. If the proper fee
is not received within a reasonable
amount of time, the entire submission
will then be returned. However, the
respective offices of the Service, in
their discretion, may defer substantive
consideration of a submission until
proper payment has been received.
(2)If a request for a determination
letter or opinion letter as to the
qualification of an employee plan is not
accompanied by a properly completed
check or money order or if the request
is accompanied by a check or money
order for less than the correct amount,
the entire submission will be returned
to the requester.
(3)An application for a determina-
tion letter will not be returned merely
because Form 8717 or Form 8718 was
not attached.
(4)The return of a submission to the
requester may adversely affect substan-
tive rights if the submission is not
perfected and resubmitted to the Serv-
ice within 30 days of the date of the
cover letter returning the submission.
Examples of this are: (a) where an
application for a determination letter is
submitted prior to the expiration of the
remedial amendment period under
§ 401(b) and is returned because no
user fee was attached, the submission
will be timely if it is resubmitted by
the expiration of the remedial amend-
ment period or, if later, within 30 days
after the application was returned; and
(b) where an application for exemption
under §501(c)(3) is submitted before
expiration of the period provided by
§ 1.508–1(a)(2) and is returned because
no user fee was attached, the submis-
sion will be timely if it is resubmitted
before expiration of the period pro-
vided by §1.508–1(a)(2) or within 30
days, whichever is later.
(5)If a check or money order is for
more than the correct amount, the
submission will be accepted and the
amount of the excess payment will be
returned to the requester.
SECTION 10. REFUNDS
.01General rule. In general, the fee
will not be refunded unless the Service
declines to rule on all issues for which
a ruling is requested. In the case of a
request for a letter ruling, if the case
has been closed by the Service because
essential information has not been
submitted timely, the request may be
reopened and treated as a new request,
but the taxpayer must pay another user
fee before the case can be reopened.
See section 11.04(4) of Rev. Proc. 96–
4, page 94, this bulletin.
.02Examples.
(1)The following situations are ex-
amples of situations in which the fee
will not be refunded:
(a)The request for a letter ruling,
determination letter, etc. is withdrawn
at any time subsequent to its receipt by
the Service, unless the only reason for
withdrawal is that the Service has
advised the requester that a higher user
fee than was sent with the request is
applicable and the requester is unwill-
ing to pay the higher fee.
(b)The request is procedurally defi-
cient, although accompanied by the
proper fee and is not timely perfected
by the requester. When there is a
failure to timely perfect the request, the
case will be considered closed and the
failure to perfect will be treated as a
withdrawal for purposes of this revenue
procedure.
(c)A letter ruling, determination
letter, etc. is revoked in whole or in
part at the initiative of the Service. The
fee paid at the time the original letter
ruling, determination letter, etc. was
requested will not be refunded.
(d)The request contains several is-
sues and the Service rules on some, but
not all, of the issues. The highest fee
applicable to the issues on which the
Service rules will not be refunded.
(e)The taxpayer asserts that a letter
ruling the taxpayer received covering a
single issue is erroneous or not respon-
sive (other than an issue on which the
Service has declined to rule) and
requests reconsideration. The Service,
upon reconsideration, does not agree
that the letter ruling is erroneous or is
not responsive. The fee accompanying
the request for reconsideration will not
be refunded.
(f)The situation is the same as
described in subparagraph (e) of this
section 10.02(1) except that the letter
ruling covered several unrelated trans-
actions. The Service, upon reconsidera-
tion, does not agree with the taxpayer
that the letter ruling is erroneous or is
not responsive for all of the transac-
tions, but does agree that it is er-
roneous as to one transaction. The fee
accompanying the request for recon-
sideration will not be refunded except
to the extent applicable to the transac-
tion for which the Service agrees the
letter ruling was in error.
(g)The request is for a supplemental
letter ruling, determination letter, etc.
concerning a change in facts (whether
significant or not) relating to the
transaction ruled on.
(h)The request is for reconsidera-
tion of an adverse or partially adverse
letter ruling or a final adverse deter-
mination letter, and the taxpayer sub-
mits arguments and authorities not
submitted before the original letter
ruling or determination letter was
issued.
(2)The following situations are ex-
amples of situations in which the fee
will be refunded:
(a)In a situation to which section
10.02(1)(h) of this revenue procedure
does not apply, the taxpayer asserts
that a letter ruling the taxpayer re-
ceived covering a single issue is
erroneous or is not responsive (other
than an issue on which the Service
declined to rule) and requests recon-
sideration. The Service agrees, upon
reconsideration, that the letter ruling is
erroneous or is not responsive. The fee
accompanying the taxpayer’s request
for reconsideration will be refunded.
(b)In a situation to which section
10.02(1)(h) of this revenue procedure
does not apply, the requester requests a
supplemental letter ruling, determina-
tion letter, etc. to correct a mistake that
the Service agrees it made in the
original letter ruling, determination let-
ter, etc., such as a mistake in the
statement of facts or in the citation of a
Code section. Once the Service agrees
that it made a mistake, the fee accom-
panying the request for the supplemen-
tal letter ruling, determination letter,
etc. will be refunded.
(c)The taxpayer requests and is
granted relief under §7805(b) in con-
nection with the revocation in whole or
in part, of a previously issued letter
ruling, determination letter, etc. The fee
accompanying the request for relief
will be refunded.
(d)In a situation to which section
10.02(1)(d) of this revenue procedure
applied, the taxpayer requests recon-
sideration of the Service’s decision not
to rule on an issue. Once the Service
agrees to rule on the issue, the fee
accompanying the request for recon-
sideration will be refunded.

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SECTION 11. REQUEST FOR
RECONSIDERATION OF USER FEE
A taxpayer that believes the user fee
charged by the Service for its request
for a letter ruling, determination letter,
etc. is either not applicable or incorrect
and wishes to receive a refund of all or
part of the amount paid (see section 10
of this revenue procedure) may request
reconsideration and, if desired, the
opportunity for an oral discussion by
sending a letter to the Internal Revenue
Service at the applicable Post Office
Box or other address given in this
section 11. Both the incoming envelope
and the letter requesting such recon-
sideration should be prominently
marked ‘‘USER FEE RECONSIDERA-
TION REQUEST.’’ No user fee is
required for these requests. The request
should be marked for the attention of:
If the matter involves primarily:Mark for the attention of:
Employee plans letter ruling requests and all other
employee plans matters handled by the Headquarters
Office
Director, Employee Plans Division, CP:E:EP
Exempt organizations letter ruling requestsDirector, Exempt Organizations Division, CP:E:EO
Employee plans and/or exempt organizations determination
letter requests
Chief, Technical/Review Staff
Key District Office (Add name of key district of-
fice handling the request.)
SECTION 12. EFFECT ON OTHER
DOCUMENTS
.01Rev. Proc. 95–8 is superseded.
SECTION 13. EFFECTIVE DATE
This revenue procedure is effective
January 2, 1996.
DRAFTING INFORMATION
The principal author of this revenue
procedure is John H. Turner of the
Employee Plans Division. For further
information regarding this revenue pro-
cedure, contact Mr. Turner at (202)
622-6214 (not a toll-free number).
APPENDIX
Following is a list of revenue proce-
dures requiring payment of a user fee,
an administrative scrutiny determina-
tion user fee, a voluntary compliance
fee, or a voluntary correction fee.
A.Procedures applicable to both
Employee Plans and Exempt
Organizations:
Rev. Proc. 96–4, this bulletin,
provides procedures for issuing letter
rulings, information letters, etc. on
matters relating to matters under the
jurisdiction of the Assistant Commis-
sioner (Employee Plans and Exempt
Organizations).
B.Procedures Applicable to
Employee Plans Matters other than
Actuarial Matters:
Rev. Proc. 75–26, 1975–1 C.B. 722,
sets forth the general procedures of the
Department of Labor and the Internal
Revenue Service for the processing of
applications for exemption under
§ 408(a) of ERISA and §4975(c)(2) of
the Code.
Rev. Proc. 87–50, 1987–2 C.B. 647,
as modified by Rev. Proc. 91–44 and
Rev. Proc. 92–38, sets forth the proce-
dures of the Service relating to the
issuance of rulings and opinion letters
with respect to the establishment of
individual retirement accounts and an-
nuities (IRAs) under §408, the entitle-
ment to exemption of related trusts or
custodial accounts under §408(e), and
the acceptability of the form of pro-
totype simplified employee pension
(SEP) agreements under §§408(k) and
415.
Rev. Proc. 89–9, 1989–1 C.B. 780,
as modified by Rev. Proc. 90–21; Rev.
Proc. 92–41, 1992–1 C.B. 870; Rev.
Proc. 93–9, 1993–1 C.B. 474; Rev.
Proc. 93–12; and Rev. Proc. 94–13;
and as supplemented by Rev. Proc. 93–
10, 1993–1 C.B. 476, sets forth the
procedures of the Service pertaining to
the issuance of opinion letters relating
to master or prototype pension, profit-
sharing and annuity plans involving
§§401 and 403(a), as amended by the
Tax Reform Act of 1986 (TRA ’86),
the Omnibus Budget Reconciliation Act
of 1986 (OBRA ’86), the Omnibus
Budget Reconciliation Act of 1987
(OBRA ’87), the Technical and Mis-
cellaneous Revenue Act of 1988
(TAMRA), and the Omnibus Budget
Reconciliation Act of 1993 (OBRA
’93), and the status for exemption of
related trusts or custodial accounts
under §501(a).
Rev. Proc. 89–13, 1989–1 C.B. 801,
as modified by Rev. Proc. 90–21, Rev.
Proc. 92–41, Rev. Proc. 93–9 and Rev.
Proc. 93–12, and as supplemented by
Rev. Proc. 93–10, sets forth the proce-
dures of the Service for issuing noti-
fication letters relating to the qualifica-
tion, as to form, of certain regional
prototype defined contribution plans
and defined benefit plans, and provides
guidance with respect to the issuance
of determination letters to employers
adopting such plans as to whether the
plans as adopted qualify under §§401
and 403(a) and as to whether any
related trusts or custodial accounts are
exempt under §501(a).
Rev. Proc. 90–21, 1990–1 C.B. 499,
modified Rev. Procs. 89–9 and 89–13
regarding certain requirements for ap-
proval by the Service of master and
prototype (M & P) pension, profit-
sharing and annuity plans and regional
prototype plans.
Rev. Proc. 91–44, 1991–2 C.B. 733,
modified Rev. Proc. 87–50 (section
2.10) and Notice 87–62, 1987–2 C.B.
374, to permit a mass submitter or

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sponsoring organization to obtain an
opinion letter for a prototype simplified
employee pension (SEP) agreement that
provides for contributions pursuant to
an employee’s election as described in
§ 408(k)(6). The revenue procedure
provides a model amendment that a
sponsor may use verbatim to add
elective deferral provisions to an exist-
ing prototype SEP and also provides
two other formats for sponsors to use
to add elective deferral provisions to
existing prototype SEPs or to use with
new prototype SEPs that provide for
elective deferrals.
Rev. Proc. 92–24, 1992–1 C.B. 739,
provides procedures for requesting de-
termination letters on the effect on a
plan’s qualified status under §401(a)
of the Code of plan language that per-
mits, pursuant to §420, the transfer of
assets in a defined benefit plan to a
health benefits account described in
§ 401(h).
Rev. Proc. 92–38, 1992–1 C.B. 859,
provides notice that individual retire-
ment arrangement trusts, custodial ac-
count agreements, and annuity con-
tracts must be amended to provide for
the required distribution rules in
§ 408(a)(6) or (b)(3). In addition, Rev.
Proc. 92–38 modifies the guidance in
Rev. Proc. 87–50 with regard to
opinion letters issued to sponsoring
organizations, including mass submit-
ters and sponsors of prototype IRAs.
Rev. Proc. 93–12, as modified by
Rev. Proc. 93–39, provides a simplified
method for master and prototype plan
sponsoring organizations or mass sub-
mitters, regional prototype plan spon-
sors or mass submitters, volume sub-
mitter specimen plan sponsors, and
sponsors of individually designed plans
which have received favorable opinion,
notification, advisory, or determination
letters to amend their plans to comply
with §401(a)(31) by adopting either a
model amendment or a nonmodel
amendment for approval by the
Service.
Rev. Proc. 93–41, 1993–2 C.B. 536,
sets forth the procedures of the Service
relating to the issuance of an admin-
istrative scrutiny determination as to
whether a separate line of business
satisfies the requirement of administra-
tive scrutiny within the meaning of
§ 1.414(r)–6.
Rev. Proc. 94–13, 1994–1 C.B. 566,
provides guidance for certain sponsors
of qualified plans and SEPs on amend-
ing their plans to reflect the modifica-
tions made by §13212 of OBRA ’93
to §401(a)(17).
Rev. Proc. 94–62, 1994–39 I.R.B.
11, describes the Voluntary Compliance
Resolution (VCR) program and the
Standardized VCR Procedure (SVP).
The VCR program permits plan spon-
sors (including employers, plan admin-
istrators and trustees) to correct opera-
tional plan defects that they have
identified. Certain other operational
defects may be corrected under the
SVP, pursuant to rules set forth in the
applicable sections of Rev. Proc. 94–
62.
Rev. Proc. 95–24, 1995–1 C.B. 694,
establishes the Tax Sheltered Annuity
Voluntary Correction Program (TVC
program). The TVC program permits
an employer that offers a tax sheltered
annuity plan under §403(b) of the
Code to voluntarily identify and correct
defects in the plan. Employers that
request consideration under the TVC
program, agree to correct the identified
defects, and pay the negotiated sanc-
tion, will receive written assurance that
the corrections are acceptable and that
the Service will not pursue revocation
of the income tax exclusion with
respect to the violations identified and
corrected.
Rev. Proc. 95–34, 1995–29 I.R.B. 7,
provides a simplified method for
amending certain plans to use the
simplified method of determining
h i g h l y c o m p e n s a t e d e m p l o y e e s
provided in Rev. Proc. 93–42, 1993–2
C.B. 540, by adopting either model
plan language or a nonmodel amend-
ment for approval by the Service.
Rev. Proc. 96–6, this bulletin,
provides procedures for issuing deter-
mination letters on the qualified status
of employee plans under §§401(a),
403(a), 409, and 4975(e)(7).
C.Employee Plans Actuarial Matters:
Rev. Proc. 78–37, 1978–2 C.B. 540,
sets forth the procedure by which a
plan administrator or plan sponsor may
obtain approval of the Secretary of the
Treasury for a change in funding
method as provided by §412(c)(5) and
§ 302(c)(5) of ERISA.
Rev. Proc. 79–61, 1979–2 C.B. 575,
outlines the procedure by which a plan
administrator or plan sponsor may
request and obtain approval for an
extension of an amortization period in
accordance with §412(e) and §304(a)
of ERISA.
Rev. Proc. 79–62, 1979–2 C.B. 576,
outlines the procedure by which a plan
sponsor or administrator may request a
determination that a plan amendment is
reasonable and provides for only de
minimis increases in plan liabilities in
accordance with §412(f)(2)(A) and
§ 304(b)(2)(A) of ERISA.
Rev. Proc. 90–49, 1990–2 C.B. 620,
modifies and replaces Rev. Proc. 89–
35, 1989–1 C.B. 917, in order to
extend the effective date to contribu-
tions made for plan years beginning
after December 31, 1989, to change the
deadline for requesting rulings under
the revenue procedure, to revise the
information requirements for a ruling
request made under the revenue proce-
dure, to furnish a worksheet for actu-
arial computations, and to provide a
special rule under which certain de
minimis nondeductible employer contri-
butions to a qualified defined benefit
plan may be returned to the taxpayer
without a formal ruling or disallowance
from the Service.
Rev. Proc. 94–41, 1994–1 C.B. 711,
sets forth procedures for requesting
waivers of the minimum funding stand-
ard described in §412(d) and the
issuance of such waivers by the Assist-
ant Commissioner (Employee Plans and
Exempt Organizations).
Rev. Proc. 94–42, 1994–1 C.B. 717,
supersedes Rev. Proc. 79–18, 1979–1
C.B. 525, and Rev. Rul. 79–215, 1979–
2 C.B. 190, and sets forth a procedure
for obtaining approval of an amend-
ment to a qualified plan that, under
§ 412(c)(8), reduces the accrued bene-
fits of plan participants.
D.Procedures Applicable to Exempt
Organizations Matters Only:
Rev. Proc. 80–27, 1980–1 C.B. 677,
provides procedures under which re-
cognition of exemption from federal
income tax under §501(c) may be
obtained on a group basis for subordi-
nate organizations affiliated with and
under the general supervision or control
of a central organization. This proce-
dure relieves each of the subordinates
covered by a group exemption letter
from filing its own application for
recognition of exemption.
Rev. Proc. 90–27, 1990–1 C.B. 514,
sets forth revised procedures with
regard to applications for recognition of
exemption from federal income tax
under §§501 and 521.

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Part IV. Items of General Interest
Cumulative List of Announcements Relating to Section 7428(c) Validation
of Certain Contributions Made During Pendency of Declaratory Judgment
Proceedings from January 1, 1995 through December 31, 1995
The following is a cumulative listing
of names of organizations that are
presently challenging, under section
7428 of the Internal Revenue Code, the
revocation of their status as organiza-
tions entitled to receive deductible con-
tributions in declaratory judgment suits
in the Tax Court, the United States
District Court for the District of Colum-
bia, or the United States Court of
Federal Claims. The purpose of this
announcement is to inform potential
donors to these organizations of the pro-
tection under 7428(c) for certain contri-
butions made during the litigation
period.
Protection under section 7428(c) of
the Code begins on the date that the
notice of revocation is published in the
Internal Revenue Bulletin and ends on
the date on which a court first deter-
mines that an organization is not
described in section 170(c)(2), as more
particularly set forth in section
7428(c)(1). In the case of individual
contributors, the maximum amount of
contributions protected during this
period is limited to $1,000.00, with a
husband and wife being treated as one
contributor. This protection is not
extended to any individual who was
responsible, in whole or in part, for the
acts or omissions of the organization
that were the basis for the revocation.
This protection also applies (but with-
out limitation as to amount) to organi-
zations described in section 170(c)(2)
which are exempt from tax under
section 501(a). If the organization
ultimately prevails in its declaratory
judgment suit, deductibility of contribu-
tions would be subject to the normal
limitations set forth under section 170.
I.The organizations listed below continue to be involved in pending declaratory judgment suits under section 7428 of the
Code, challenging revocation of their status as eligible donees under section 170(c)(2). Protection under section 7428(c)
begins on the date indicated.
Anclote Psychiatric Center, Inc.Tarpon Springs, FL
(January 27, 1992)
Colorado Reform Baptist Church, Inc.Colorado Springs, CO
(January 22, 1991)
Faith Christian Ministries Church, Inc.Fenton, MO
(November 7, 1991)
Gates Community Chapel of Rochester, Inc.Lakemont, NY
(November 21, 1994)
LAC Facilities, Inc. (f/k/a ModernNorth Miami Beach, FL
Health Care Services, Inc.)
(August 29, 1994)
New Hope Spiritual CenterZephyr Hills, FL
(March 28, 1994)
Jack Rehburg Ministries (a/k/a TotalSnow Camp, NC
Christian Television)
(May 3, 1993)
Textile Arts FoundationWashington, DC
(February 22, 1994)
United Cancer Council, Inc.Indianapolis, IN
(March 25, 1991)
II.The Organizations listed below have timely filed declaratory judgment suits under section 7428 of the Code during 1995.
Protection under section 7428(c) begins on the date indicated.
Branch Ministries, Inc. (d/b/a The ChurchBinghampton, NY
at Pierce Creek)
(April 10, 1995)
Christe, Inc.Cincinnati, OH
(December 18, 1995)
Christian Communications NetworkLa Mesa, CA
(October 2, 1995)

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2021996–22 I.R.B.
Greater Damascus Baptist ChurchDayton, OH
(November 20, 1995)
HAC Corporation (a/k/a Hobgood Academy)Hobgood, NC
(July 3, 1995)
Philippi Missionary Baptist ChurchDayton, OH
(November 20, 1995)
III.Pursuant to section 7428(c)(1), a court has determined that the organizations listed below are no longer described in
section 170(c)(2) of the Code. Protection under section 7428(c) has terminated effective on the date indicated.
America’s Battered ChildrenVan Alstyne, TX
(April 4, 1995)
Cleveland American Indian Center, Inc.Cleveland, OH
(November 21, 1994)
Coalition for Freedom, Inc.Raleigh, NC
(December 20, 1994)
IV.This Announcement serves notice to potential donors that a court has determined that the organization listed below
continues to be described in section 170(c)(2) of the Internal Revenue Code.
George W. McManus Foundation, Inc.Baltimore, MD
(May 25, 1993)

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Definition of Terms
Revenue rulings and revenue proce-
dures (hereinafter referred to as ‘‘rul-
ings’’) that have an effect on previous
rulings use the following defined terms
to describe the effect:
Amplified describes a situation where
no change is being made in a prior
published position, but the prior posi-
tion is being extended to apply to a
variation of the fact situation set forth
therein. Thus, if an earlier ruling held
that a principle applied to A, and the
new ruling holds that the same princi-
ple also applies to B, the earlier ruling
is amplified. (Compare with modified,
below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in
a prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously
published ruling and points out an
essential difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but
not to B, and the new ruling holds that
it applies to both A and B, the prior
ruling is modified because it corrects a
published position. (Compare with am-
plified and clarified, above).
Obsoleted describes a previously
published ruling that is not considered
determinative with respect to future
transactions. This term is most com-
monly used in a ruling that lists
previously published rulings that are
obsoleted because of changes in law or
regulations. A ruling may also be
obsoleted because the substance has
been included in regulations subse-
quently adopted.
Revoked describes situations where
the position in the previously published
ruling is not correct and the correct
position is being stated in the new
ruling.
Superseded describes a situation
where the new ruling does nothing
more than restate the substance and
situation of a previously published
ruling (or rulings). Thus, the term is
used to republish under the 1986 Code
and regulations the same position pub-
lished under the 1939 Code and regula-
tions. The term is also used when it is
desired to republish in a single ruling a
series of situations, names, etc., that
were previously published over a
period of time in separate rulings. If
If the new ruling does more than
restate the substance of a prior ruling, a
combination of terms is used. For
example, modified and superseded de-
scribes a situation where the substance
of a previously published ruling is
being changed in part and is continued
without change in part and it is desired
to restate the valid portion of the
previously published ruling in a new
ruling that is self contained. In this
case the previously published ruling is
first modified and then, as modified, is
superseded.
Supplemented is used in situations in
which a list, such as a list of the names
of countries, is published in a ruling
and that list is expanded by adding
further names in subsequent rulings.
After the original ruling has been
supplemented several times, a new
ruling may be published that includes
the list in the original ruling and the
additions, and supersedes all prior
rulings in the series.
Suspended is used in rare situations
to show that the previous published
rulings will not be applied pending
some future action such as the issuance
of new or amended regulations, the
outcome of cases in litigation, or the
outcome of a Service study.
Abbreviations
The following abbreviations in current use and
formerly used will appear in material published
in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

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Numerical Finding List
1
Bulletins 1995–27 through 1995–52
Announcements:
95–54, 1995–27 I.R.B. 39
95–55, 1995–27 I.R.B. 39
95–56, 1995–27 I.R.B. 39
95–57, 1995–28 I.R.B. 13
95–58, 1995–29 I.R.B. 13
95–59, 1995–31 I.R.B. 29
95–60, 1995–31 I.R.B. 11
95–61, 1995–32 I.R.B. 54
95–62, 1995–32 I.R.B. 76
95–63, 1995–32 I.R.B. 76
95–64, 1995–32 I.R.B. 30
95–65, 1995–33 I.R.B. 25
95–66, 1995–33 I.R.B. 25
95–67, 1995–34 I.R.B. 28
95–68, 1995–34 I.R.B. 28
95–69, 1995–34 I.R.B. 31
95–70, 1995–35 I.R.B. 22
95–71, 1995–35 I.R.B. 22
95–72, 1995–36 I.R.B. 33
95–73, 1995–37 I.R.B. 50
95–74, 1995–37 I.R.B. 50
95–75, 1995–37 I.R.B. 51
95–76, 1995–38 I.R.B. 48
95–77, 1995–38 I.R.B. 49
95–78, 1995–39 I.R.B. 19
95–79, 1995–40 I.R.B. 44
95–80, 1995–40 I.R.B. 44
95–81, 1995–41 I.R.B. 34
95–82, 1995–41 I.R.B. 37
95–83, 1995–42 I.R.B. 11
95–84, 1995–42 I.R.B. 11
95–85, 1995–42 I.R.B. 12
95–86, 1995–44 I.R.B. 27
95–87, 1995–43 I.R.B. 8
95–88, 1995–43 I.R.B. 8
95–89, 1995–43 I.R.B. 8
95–90, 1995–43 I.R.B. 9
95–91, 1995–44 I.R.B. 33
95–92, 1995–45 I.R.B. 14
95–93, 1995–46 I.R.B. 17
95–94, 1995–46 I.R.B. 17
95–95, 1995–47 I.R.B. 18
95–96, 1995–47 I.R.B. 18
95–97, 1995–47 I.R.B. 19
95–98, 1995–47 I.R.B. 19
95–99, 1995–48 I.R.B. 10
95–100, 1995–48 I.R.B. 10
95–101, 1995–49 I.R.B. 10
95–102, 1995–50 I.R.B. 17
95–103, 1995–50 I.R.B. 17
95–104, 1995–51 I.R.B. 21
95–105, 1995–51 I.R.B. 21
95–106, 1995–51 I.R.B. 21
95–107, 1995–52 I.R.B. 37
See footnote at end of list.
Notices:
95–41, 1995–28 I.R.B. 5
95–42, 1995–31 I.R.B. 4
95–43, 1995–33 I.R.B. 22
95–44, 1995–33 I.R.B. 23
95–45, 1995–34 I.R.B. 20
95–46, 1995–34 I.R.B. 20
95–47, 1995–35 I.R.B. 17
95–48, 1995–36 I.R.B. 21
95–49, 1995–39 I.R.B. 18
95–50, 1995–42 I.R.B. 8
95–51, 1995–42 I.R.B. 8
95–52, 1995–43 I.R.B. 7
95–53, 1995–44 I.R.B. 21
95–54, 1995–44 I.R.B. 21
95–55, 1995–45 I.R.B. 11
95–56, 1995–45 I.R.B. 11
95–57, 1995–45 I.R.B. 12
95–58, 1995–46 I.R.B. 12
95–59, 1995–46 I.R.B. 12
95–60, 1995–47 I.R.B. 9
95–61, 1995–47 I.R.B. 10
95–62, 1995–47 I.R.B. 12
95–63, 1995–48 I.R.B. 8
95–64, 1995–50 I.R.B. 5
95–65, 1995–50 I.R.B. 5
95–66, 1995–51 I.R.B. 19
95–67, 1995–52 I.R.B. 35
Proposed Regulations:
CO–19–95, 1995–38 I.R.B. 43
CO–24–95, 1995–32 I.R.B. 53
95–87, 1995–43 I.R.B. 8
IA–10–95, 1995–34 I.R.B. 27
IA–30–95, 1995–45 I.R.B. 13
INTL–75–92, 1995–40 I.R.B. 39
INTL–24–94, 1995–27 I.R.B. 33
PS–268–82, 1995–31 I.R.B. 5
PS–29–92, 1995–36 I.R.B. 32
PS–34–92, 1995–47 I.R.B. 15
PS–25–94, 1995–38 I.R.B. 47
PS–54–94, 1995–37 I.R.B. 48
PS–8–95, 1995–39 I.R.B. 19
Public Laws:
104–7, 1995–29 I.R.B. 5
Railroad Retirement Quarterly Rate:
1995–40 I.R.B. 37
Revenue Procedures:
95–29A, 1995–30 I.R.B. 5
95–30, 1995–27 I.R.B. 9
95–31, 1995–28 I.R.B. 5
95–32, 1995–28 I.R.B. 6
95–33, 1995–28 I.R.B. 7
95–34, 1995–29 I.R.B. 7
95–35, 1995–32 I.R.B. 51
Revenue Procedures—Continued
95–35A, 1995–40 I.R.B. 38
95–36, 1995–33 I.R.B. 24
95–37, 1995–34 I.R.B. 21
95–38, 1995–34 I.R.B. 25
95–39, 1995–35 I.R.B. 17
95–40, 1995–36 I.R.B. 21
95–41, 1995–36 I.R.B. 28
95–42, 1995–35 I.R.B. 20
95–43, 1995–36 I.R.B. 31
95–44, 1995–42 I.R.B. 9
95–45, 1995–44 I.R.B. 22
95–46, 1995–46 I.R.B. 13
95–47, 1995–47 I.R.B. 12
95–48, 1995–47 I.R.B. 13
95–49, 1995–50 I.R.B. 5
95–50, 1995–50 I.R.B. 16
95–51, 1995–51 I.R.B. 6
95–52, 1995–51 I.R.B. 14
95–53, 1995–52 I.R.B. 22
95–54, 1995–52 I.R.B. 27
95–55, 1995–52 I.R.B. 34
Revenue Rulings:
95–29A, 1995–28 I.R.B. 4
95–48, 1995–27 I.R.B. 5
95–49, 1995–29 I.R.B. 4
95–50, 1995–30 I.R.B. 4
95–51, 1995–32 I.R.B. 4
95–52, 1995–34 I.R.B. 16
95–53, 1995–34 I.R.B. 17
95–54, 1995–35 I.R.B. 5
95–55, 1995–35 I.R.B. 13
95–56, 1995–36 I.R.B. 20
95–57, 1995–35 I.R.B. 5
95–58, 1995–36 I.R.B. 16
95–59, 1995–35 I.R.B. 10
95–60, 1995–35 I.R.B. 7
95–61, 1995–35 I.R.B. 6
95–62, 1995–36 I.R.B. 14
95–63, 1995–37 I.R.B. 4
95–64, 1995–38 I.R.B. 4
95–65, 1995–39 I.R.B. 4
95–66, 1995–40 I.R.B. 4
95–67, 1995–41 I.R.B. 29
95–68, 1995–42 I.R.B. 5
95–69, 1995–42 I.R.B. 4
95–70, 1995–43 I.R.B. 4
95–71, 1995–42 I.R.B. 7
95–72, 1995–42 I.R.B. 4
95–73, 1995–45 I.R.B. 6
95–74, 1995–46 I.R.B. 6
95–75, 1995–46 I.R.B. 8
95–76, 1995–47 I.R.B. 5
95–77, 1995–47 I.R.B. 6
95–78, 1995–49 I.R.B. 6
95–79, 1995–49 I.R.B. 4
95–80, 1995–51 I.R.B. 4
95–81, 1995–52 I.R.B. 6

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—Continued
Bulletins 1995–27 through 1995–52
Revenue Rulings—Continued
95–82, 1995–52 I.R.B. 7
95–83, 1995–52 I.R.B. 5
Social Security Contributions & Benefit
Base:
1995–46 I.R.B. 16
Treasury Decisions:
8597, 1995–32 I.R.B. 6
8598, 1995–32 I.R.B. 47
8599, 1995–33 I.R.B. 5
8600, 1995–33 I.R.B. 10
8601, 1995–33 I.R.B. 8
8602, 1995–34 I.R.B. 5
8603, 1995–34 I.R.B. 18
8604, 1995–35 I.R.B. 9
8605, 1995–36 I.R.B. 17
8606, 1995–36 I.R.B. 5
8607, 1995–36 I.R.B. 8
8608, 1995–36 I.R.B. 10
8609, 1995–37 I.R.B. 5
8610, 1995–37 I.R.B. 13
8611, 1995–37 I.R.B. 20
8612, 1995–38 I.R.B. 7
8613, 1995–38 I.R.B. 31
8614, 1995–38 I.R.B. 4
8615, 1995–39 I.R.B. 5
8616, 1995–39 I.R.B. 7
8617, 1995–39 I.R.B. 9
8618, 1995–40 I.R.B. 4
8619, 1995–41 I.R.B. 4
8620, 1995–41 I.R.B. 25
8621, 1995–43 I.R.B. 5
8622, 1995–44 I.R.B. 5
8623, 1995–45 I.R.B. 4
8624, 1994–45 I.R.B. 8
8625, 1995–46 I.R.B. 10
8626, 1995–46 I.R.B. 4
8627, 1995–48 I.R.B. 4
8628, 1995–52 I.R.B. 9
8629, 1995–52 I.R.B. 14
Treasury Department Directives:
15–42, 1995–41 I.R.B. 32
15–43, 1995–36 I.R.B. 31
Treasury Department Orders:
150–01, 1995–44 I.R.B. 23
1
A cumulative list of all Revenue Rulings,
Revenue Procedures, Treasury Decisions, etc.,
published in Internal Revenue Bulletins 1995–1
through 1995–26 will be found in Internal
Revenue Bulletin 1995–27, dated July 3, 1995.

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Finding List of Current Action on
Previously Published Items
1
Bulletins 1995–27 through 1995–52
*Denotes entry since last publication
Revenue Procedures:
71–38
Obsoleted by
95–44, 1995–42 I.R.B. 9
72–15
Obsoleted by
95–44, 1995–42 I.R.B. 9
82–20
Obsoleted by
95–43, 1995–36 I.R.B. 31
82–59
Obsoleted by
95–44, 1995–42 I.R.B. 9
83–23
Supplemented by
95–48, 1995–47 I.R.B. 13
89–9
Modified by
95–34, 1995–29 I.R.B. 7
89–13
Modified by
95–34, 1995–29 I.R.B. 7
95–42, 1995–35 I.R.B. 20
90–55
Obsoleted by
95–45, 1995–44 I.R.B. 22
92–10
Clarified by
95–52, 1995–51 I.R.B. 14
92–16
Modified & Superseded by
95–52, 1995–51 I.R.B. 14
93–12
Modified by
95–34, 1995–29 I.R.B. 7
93–38
Supplemented by
95–31, 1995–28 I.R.B. 5
93–39
Modified by
95–34, 1995–29 I.R.B. 7
93–42
Modified by
95–34, 1995–29 I.R.B. 7
93–47
Modified by
95–34, 1995–29 I.R.B. 7
See footnote at end of list.
Revenue Procedure—Continued
94–13
Modified by
95–34, 1995–29 I.R.B. 7
94–19
Superseded by
95–52, 1995–51 I.R.B. 14
94–35
Superseded by
95–30, 1995–27 I.R.B. 9
94–49
Modified by
95–33, 1995–28 I.R.B. 7
94–63
Superseded by
95–49, 1995–50 I.R.B. 5
94–66
Obsoleted in part by
95–32, 1995–28 I.R.B. 6
94–73
Superseded by
95–54, 1995–52 I.R.B. 27*
95–3
Amplified by
Notice 95–45, 1995–34 I.R.B. 20
95–50, 1995–50 I.R.B. 16
95–8
Modified by
95–34, 1995–29 I.R.B. 7
95–29
Modified and Amplified by
95–29A, 1995–30 I.R.B. 5
95–35
Modified in part by
95–35A, 1995–40 I.R.B. 38
Revenue Rulings:
54–171
Obsoleted by
95–71, 1995–42 I.R.B. 7
54–257
Obsoleted by
95–71, 1995–42 I.R.B. 7
56–171
Obsoleted by
95–71, 1995–42 I.R.B. 7
56–286
Obsoleted by
95–71, 1995–42 I.R.B. 7
57–243
Obsoleted by
95–71, 1995–42 I.R.B. 7
Revenue Rulings—Continued
57–490
Obsoleted by
95–71, 1995–42 I.R.B. 7
58–9
Obsoleted by
95–71, 1995–42 I.R.B. 7
58–241
Obsoleted by
95–71, 1995–42 I.R.B. 7
58–391
Obsoleted by
95–71, 1995–42 I.R.B. 7
63–125
Obsoleted by
95–71, 1995–42 I.R.B. 7
64–100
Obsoleted by
95–71, 1995–42 I.R.B. 7
64–239
Obsoleted by
95–71, 1995–42 I.R.B. 7
64–257
Obsoleted by
95–71, 1995–42 I.R.B. 7
65–30
Obsoleted by
95–71, 1995–42 I.R.B. 7
66–81
Obsoleted by
95–71, 1995–42 I.R.B. 7
66–306
Obsoleted by
95–71, 1995–42 I.R.B. 7
66–327
Obsoleted by
95–71, 1995–42 I.R.B. 7
67–269
Obsoleted by
95–71, 1995–42 I.R.B. 7
68–21
Obsoleted by
95–71, 1995–42 I.R.B. 7
68–294
Obsoleted by
95–71, 1995–42 I.R.B. 7
68–358
Obsoleted by
95–71, 1995–42 I.R.B. 7
68–457
Obsoleted by
95–71, 1995–42 I.R.B. 7

SEQ 0046 JOB L36-052-003 PAGE-0207 FINDING LIST
REVISED 06JUN96 AT 09:52 BY LR DEPTH: 65.01 PICAS WIDTH 40.11 PICAS
COMPOSITE COLOR
778/20050/6JUN96/L36-052
207
Finding List of Current Action on
Previously Published Items
1
—
Continued
Bulletins 1995–27 through 1995–52
*Denotes entry since last publication
Revenue Rulings—Continued
69–95
Obsoleted by
95–71, 1995–42 I.R.B. 7
69–172
Obsoleted by
95–71, 1995–42 I.R.B. 7
69–284
Obsoleted by
95–71, 1995–42 I.R.B. 7
70–467
Obsoleted by
95–71, 1995–42 I.R.B. 7
70–514
Obsoleted by
95–71, 1995–42 I.R.B. 7
71–367
Obsoleted by
95–80, 1995–51 I.R.B. 4*
71–522
Obsoleted by
95–71, 1995–42 I.R.B. 7
73–2
Obsoleted by
95–71, 1995–42 I.R.B. 7
73–264
Obsoleted by
95–71, 1995–42 I.R.B. 7
73–515
Obsoleted by
95–71, 1995–42 I.R.B. 7
73–551
Obsoleted by
95–71, 1995–42 I.R.B. 7
73–552
Obsoleted by
95–71, 1995–42 I.R.B. 7
73–611
Obsoleted by
95–71, 1995–42 I.R.B. 7
74–61
Obsoleted by
95–71, 1995–42 I.R.B. 7
74–119
Obsoleted by
95–71, 1995–42 I.R.B. 7
74–295
Obsoleted by
95–71, 1995–42 I.R.B. 7
See footnote at end of list.
Revenue Rulings—Continued
74–430
Obsoleted by
95–71, 1995–42 I.R.B. 7
74–441
Obsoleted by
95–71, 1995–42 I.R.B. 7
74–522
Obsoleted by
95–71, 1995–42 I.R.B. 7
75–40
Obsoleted by
95–71, 1995–42 I.R.B. 7
75–240
Obsoleted by
95–71, 1995–42 I.R.B. 7
75–324
Obsoleted by
95–71, 1995–42 I.R.B. 7
75–460
Obsoleted by
95–71, 1995–42 I.R.B. 7
75–508
Obsoleted by
95–71, 1995–42 I.R.B. 7
76–36
Obsoleted by
95–31, 1995–42 I.R.B. 7
77–190
Obsoleted by
95–71, 1995–42 I.R.B. 7
77–182
Modified by
95–58, 1995–36 I.R.B. 16
78–285
Obsoleted by
95–71, 1995–42 I.R.B. 7
78–350
Obsoleted by
95–71, 1995–42 I.R.B. 7
78–422
Obsoleted by
95–71, 1995–42 I.R.B. 7
79–3
Obsoleted by
95–71, 1995–42 I.R.B. 7
79–41
Clarified & Superseded by
95–53, 1995–34 I.R.B. 17
79–121
Obsoleted by
95–71, 1995–42 I.R.B. 7
79–149
Obsoleted by
95–71, 1995–42 I.R.B. 7
Revenue Rulings—Continued
79–353
Revoked by
95–58, 1995–36 I.R.B. 16
79–376
Obsoleted by
95–71, 1995–42 I.R.B. 7
80–221
Obsoleted by
95–71, 1995–42 I.R.B. 7
81–51
Revoked by
95–58, 1995–36 I.R.B. 16
81–204
Obsoleted by
95–71, 1995–42 I.R.B. 7
81–218
Obsoleted by
95–71, 1995–42 I.R.B. 7
82–58
Obsoleted by
95–71, 1995–42 I.R.B. 7
82–72
Obsoleted by
95–71, 1995–42 I.R.B. 7
82–113
Obsoleted by
95–71, 1995–42 I.R.B. 7
83–38
Obsoleted by
95–71, 1995–42 I.R.B. 7
84–152
Obsoleted by
95–56, 1995–36 I.R.B. 20
84–153
Obsoleted by
95–56, 1995–36 I.R.B. 20
85–125
Obsoleted by
95–71, 1995–42 I.R.B. 7
85–161
Obsoleted by
95–71, 1995–42 I.R.B. 7
85–163
Obsoleted by
95–56, 1995–36 I.R.B. 20
87–4
Obsoleted by
95–71, 1995–42 I.R.B. 7
87–89
Obsoleted in part by
95–56, 1995–36 I.R.B. 20
92–63
Modified and Superseded by
95–63, 1995–37 I.R.B. 4

SEQ 0052 JOB L36-052-003 PAGE-0208 FINDING LIST
REVISED 03JUN96 AT 12:22 BY LR DEPTH: 65.01 PICAS WIDTH 32.08 PICAS
COMPOSITE COLOR
778/20047/3JUN96/L36-052
208
Finding List of Current Action on
Previously Published Items
1
—
Continued
Bulletins 1995–27 through 1995–52
*Denotes entry since last publication
Revenue Rulings—Continued
92–84
Obsoleted by
T.D. 8600, 1995–33 I.R.B. 10
93–88
Suspended by
Notice 95–45, 1995–34 I.R.B. 20
95–35
Modified by
95–66, 1995–40 I.R.B. 4
1
A cumulative finding list for previously
published items mentioned in Internal Revenue
Bulletins 1995–1 through 1995–26 will be
found in Internal Revenue Bulletin 1995–27,
dated July 3, 1995.

SEQ 0015 JOB L36-054-008 PAGE-0209 INDEX
REVISED 28MAY96 AT 09:33 BY LR DEPTH: 65.01 PICAS WIDTH 46 PICAS
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778/20047/28MAY96/L36-054
209
INDEX
Internal Revenue Bulletins 1995–27
Through 1995–52
For index of items published during
the first six months of 1995, see
I.R.B. 1995–27, dated July 3, 1995.
The abbreviation and number in pa-
rentheses following the index entry
refer to the specific item; numbers
in roman and italic type following the
parentheses refer to the Internal
Revenue Bulletin in which the item
may be found and the page number
on which it appears.
Key to Abbreviations:
RRRevenue Ruling
RPRevenue Procedure
TDTreasury Decision
CDCourt Decision
PLPublic Law
EOExecutive Order
DODelegation Order
TDOTreasury Department Order
TCTax Convention
SPRStatement of Procedural
Rules
PTEProhibited Transaction
Exemption
EMPLOYMENT TAXES
Administration:
Correction of previously filed Forms
942 (Notice 54) 44, 21
Deficiencies:
Adjusted interest rates (RR 59) 35,
10; (RR 78) 49, 4
Overpayments:
Adjusted interest rates (RR 59) 35,
10; (RR 78) 49, 4
Penalties, use of electronic funds
transfer (RR 68) 42, 5
Proposed regulations:
26 CFR 31.6011(a)–4, revised; re-
porting of nonpayroll withheld tax
liabilities (IA–30–95) 45, 13
26 CFR 301.6061–1, amended; meth-
ods of signing (IA–10–95) 34, 27
26 CFR 301.6109–1, amended; tax-
payer identifying numbers (INTL–
24–94) 27, 33
26 CFR 301.6109–3, added; au-
thority of FCIC to require EINs,
withdrawal of regs. (Notice 62)
47, 12
EMPLOYMENT TAXES—
Continued
Proposed regulations—Continued
26 CFR 301.6231(a)(7)–1, amended;
301.6231(a)(7)–2, added; selection
of tax matters partner for limited
liability companies (PS–34–92) 47,
15
26 CFR 301.7503–1, amended; time
for performance of acts where last
day falls on Saturday, Sunday, or
legal holiday (IA–36–91) 42, 10
26 CFR 301.7701–4(e), added; en-
vironmental settlement funds, clas-
sification (PS–54–94) 37, 48
Request for comments concerning
withdrawal (Notice 51) 42, 8
Railroad retirement:
Rate determination, quarterly (begin-
ning Oct. 1, 1995) 40, 37
Rates of tax:
Social Security contribution and ben-
efit base 40, 16
Regulations:
26 CFR 31.3402(p)–1, amended;
31.3504(c)–1, added; 31.3405(c)–
1T, removed; direct rollovers and
20-percent withholding upon
eligible rollover distributions from
qualified plans (TD 8619) 41, 4
26 CFR 31.3505–1, amended; liabil-
ity of third parties paying or pro-
viding for wages, suit period and
extension and maximum amount
recoverable (TD 8604) 35, 9
26 CFR 31.6011(a)–4, amended;
31.6011(a)–4T, added; reporting of
nonpayroll withheld tax liabilities
(TD 8624) 45, 8
26 CFR 301.6061–1T, added; meth-
ods of signing (TD 8603) 34, 18
26 CFR 301.6109–2, amended; au-
thority of Sec. of Agriculture to
share EIN collected from retail
food stores and wholesale food
concerns (TD 8621) 43, 5
26 CFR 301.6211–1, 301.7611–1,
a n d i n t e r m e d i a t e s e c t i o n s ,
amended; 301.6852–1, 301.7409–
1, added; political expenditures by
sec. 501(c)(3) organizations (TD
8628) 52, 9
2 6 C F R 3 0 1 . 6 8 6 7 – 1 , a d d e d ;
301.6867–1T, removed; presump-
tions where owner of large amount
of cash is not identified (TD 8605)
36, 17
26 CFR 301.7514–1, amended; seals
of office (TD 8625) 46, 10
EMPLOYMENT TAXES—
Continued
Regulations—Continued
26 CFR 301.7701(i)–0—301.7701(i)–
4, added; taxable mortgage pools
(TD 8610) 37, 13
Request for comments concerning
removal (Notice 51) 42, 8
Rulings:
Obsolete (RP 43) 36, 31
Self-employment tax:
Social Security contribution and ben-
efit base 46, 16
ESTATE & GIFT TAXES
ADMINISTRATIVE
Deficiencies:
Adjusted interest rates (RR 59) 35,
10; (RR 78) 49, 4
Overpayments:
Adjusted interest rates (RR 59) 35,
10; (RR 78) 49, 4
Proposed regulations:
26 CFR 301.6061–1, amended; meth-
ods of signing (IA–10–95) 34, 27
26 CFR 301.6109–1, amended; tax-
payer identifying numbers (INTL–
24–94) 27, 33
26 CFR 301.6109–3, added; au-
thority of FCIC to require EINs,
withdrawal of regs. (Notice 62)
47, 12
26 CFR 301.6231(a)(7)–1, amended;
301.6231(a)(7)–2, added; selection
of tax matters partner for limited
liability companies (PS–34–92) 47,
15
26 CFR 301.7503–1, amended; time
for performance of acts where last
day falls on Saturday, Sunday, or
legal holiday (IA–36–91) 42, 10
26 CFR 301.7701–4(e), added; en-
vironmental settlement funds, clas-
sification (PS–54–94) 37, 48
Request for comments concerning
withdrawal (Notice 51) 42, 8
Regulations:
26 CFR 301.6061–1T, added; meth-
ods of signing (TD 8603) 34, 18
26 CFR 301.6109–2, amended; au-
thority of Sec. of Agriculture to
share EIN collected from retail
food stores and wholesale food
concerns (TD 8621) 43, 5

SEQ 0016 JOB L36-054-008 PAGE-0210 INDEX
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ESTATE & GIFT TAXES—
Continued
ADMINISTRATIVE—Continued
Regulations—Continued
26 CFR 301.6211–1, 301.7611–1,
a n d i n t e r m e d i a t e s e c t i o n s ,
amended; 301.6852–1, 301.7409–
1, added; political expenditures by
sec. 501(c)(3) organizations (TD
8628) 52, 9
2 6 C F R 3 0 1 . 6 8 6 7 – 1 , a d d e d ;
301.6867–1T, removed; presump-
tions where owner of large amount
of cash is not identified (TD 8605)
36, 17
26 CFR 301.7514–1, amended; seals
of office (TD 8625) 46, 10
26 CFR 301.7701(i)–0—301.7701(i)–
4, added; taxable mortgage pools
(TD 8610) 37, 13
Request for comments concerning
removal (Notice 51) 42, 8
Rulings:
Areas in which rulings will not be
issued:
Generation skipping transfers (RP
50) 50, 16
ESTATE TAX
Proposed regulations:
26 CFR 20.2056A–2, amended; re-
quirements to ensure collection of
estate tax (PS–25–94) 38, 47
Regulations:
26 CFR 20.2056–0, 20.2102–1,
20.2106–1, amended; 20.2056(d)–1
& –2 redesignated (d) –2 & –3;
2 0 . 2 0 5 6 ( d ) – 1 , 2 0 . 2 0 5 6 A – 0 —
20.2056A–13, added; 20.2101–1,
revised; 20.2106–2(c) removed &
reserved; marital deduction provi-
sions (TD 8612) 38, 7
26 CFR 20.2056A–2T, added; re-
quirements to ensure collection of
estate tax (TD 8613) 38, 31
Trusts:
Power to appoint trustee (RR 58) 36,
16
GIFT TAX
Regulations:
26 CFR 25.2503–2, amended;
25.2523(i)–1, –2, –3, 25.2702–
1(c)(8), added; marital deduction
provisions (TD 8612) 38, 7
EXCISE TAXES
Chemicals:
Taxable substances:
Methyl methacrylate (Notice 58)
46, 12
Monoethanolamine, diethanola-
mine, triethanolamine, monoiso-
propanolamine, diisopropanola-
m i n e , t r i i s o p r o p a n o l a m i n e ,
toluene diisocyanate, and chlori-
nated polyethylene (Notice 43)
33, 22
Poly 1,4 butyleneterephthalate
(Notice 59) 46, 12
Toluenediamine (Notice 44) 33, 23
Deficiencies:
Adjusted interest rates (RR 59) 35,
10; (RR 78) 49, 4
Overpayments:
Adjusted interest rates (RR 59) 35,
10; (RR 78) 49, 4
Proposed regulations:
26 CFR 40.6302(c)–5, added; de-
posits of excise taxes (PS–8–95)
39, 19
26 CFR 301.6061–1, amended; meth-
ods of signing (IA–10–95) 34, 27
26 CFR 301.6109–1, amended; tax-
payer identifying numbers (INTL–
24–94) 27, 33
26 CFR 301.6109–3, added; au-
thority of FCIC to require EINs,
withdrawal of regs. (Notice 62)
47, 12
26 CFR 301.6231(a)(7)–1, amended;
301.6231(a)(7)–2, added; selection
of tax matters partner for limited
liability companies (PS–34–92) 47,
15
26 CFR 301.7503–1, amended; time
for performance of acts where last
day falls on Saturday, Sunday, or
legal holiday (IA–36–91) 42, 10
26 CFR 301.7701–4(e), added; en-
vironmental settlement funds, clas-
sification (PS–54–94) 37, 48
Rates of tax:
Luxury automobile, adjustment, 1996
(RP 53) 52, 22
Regulations:
26 CFR 40.6302(c)–0, 48.4081–0,
r e m o v e d ; 4 0 . 6 3 0 2 ( c ) – 1 ( e ) ( 4 ) ,
48.4101–3, added; 48.4041–8(f),
48.4081–7, amended; 48.4041–21,
48.4081–3(b)(1), 48.4081–6, re-
vised; gasohol, compressed natural
gas (CNG) (TD 8609) 37, 5
EXCISE TAXES—
Continued
Regulations—Continued
26 CFR 40.6302(c)–5T, added; de-
posits of excise taxes (TD 8616)
39, 7
26 CFR 52.4681–0, removed;
52.4681–1, 52.4682–1, –2, –4,
amended; 52.4682–5, added; ex-
ports of chemicals that deplete the
ozone layer, special rules for
certain medical uses of chemicals
that deplete the ozone layer (TD
8622) 44, 5
26 CFR 53.4955–1, 53.6071–1(e),
301.6852–1, 301.7409–1, added;
53.4963–1, 53–6011–1, 301.6211–
1, 301.7611–1, and intermediated
sections, amended; 53.6091–1, re-
vised; political expenditures by
sec. 501(c)(3) organizations (TD
8628) 52, 9
26 CFR 301.6061–1T, added; meth-
ods of signing (TD 8603) 34, 18
26 CFR 301.6109–2, amended; au-
throity of Sec. of Agriculture to
share EIN collected from retail
food stores and wholesale food
concerns (TD 8621) 43, 5
2 6 C F R 3 0 1 . 6 8 6 7 – 1 , a d d e d ;
301.6867–1T, removed; presump-
tions where owner of large amount
of cash is not identified (TD 8605)
36, 17
26 CFR 301.7514–1, amended; seals
of office (TD 8625) 46, 10
26 CFR 301.7701(i)–0—301.7701(i)–
4, added; taxable mortgage pools
(TD 8610) 37, 13
INCOME TAX
Accounting methods:
Change, section 263A costs (RP 33)
28, 7
Rent-to-own contracts (RP 38) 34,
25
Sec. 1281 method changes (Notice
57) 45, 12
Administration:
Delegation of authority:
Criminal investigatory and civil
penalty enforcement authority to
Commissioner (Treas. Directive
15–43) 36, 31

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INCOME TAX—Continued
Administration—Continued
Delegation of authority—Continued
Investigatory, seizure, and forfeit-
ure authority under Money
Laundering Control Act of 1986
to Commissioner (Treas. Direc-
tive 15–42) 41, 32
Merchant Marine Capital Con-
struction Funds, interest rate
(Notice 46) 34, 20
Regional and district offices of the
IRS (TDO 150–01) 44, 23
Allocation of income and deductions,
‘‘stripping transactions’’ (Notice 53)
44, 21
Automobiles:
Optional standard mileage rates (RP
54) 52, 27
Bonds:
Qualified mortgage bonds:
Mortgage credit certificates:
National median gross income
(RP 32) 28, 6
Qualified census tracts (RP 31)
28, 5
Tax-exempt bonds, arbitrage (RP 47)
47, 12
Business expenses:
Health insurance, self-employed indi-
vidual (PL 104–7) 29, 5
Substantiation requirements (Notice
50) 42, 8
Charitable contributions:
Organizations providing relief to vic-
tims of Hurricane Marilyn (Notice
56) 45, 11
Consolidated returns:
Permission to discontinue filing (RP
39) 35, 17
Corporations:
Foreign sales corporations, require-
ments suspended, Hurricane Mar-
ilyn (Notice 60) 47, 9
Credits against tax:
Carryovers allocated to qualified
states (RP 36) 33, 24
Commingled alcohol mixture (RR
54) 35, 5
Earned income, excessive investment
income (PL 104–7) 29, 5
Low-income housing:
Satisfactory bond, ‘‘bond factor’’
amounts, Jan. through Sept.
1995 (RR 64) 38, 4; Jan.
through Dec. 1995 (RR 83) 52,
5
INCOME TAX—Continued
Credit against tax—Continued
Low-income housing—Continued
Section 42(h)(6) extended commit-
ment (RR 49) 29, 4
Damages, compensation for inju-
ries or sickness (Notice 45) 34,
20
Deficiencies:
Adjusted interest rates (RR 59) 35,
10; (RR 78) 49, 4
Depreciation:
Leased consumer durable property
(RR 52) 34, 16
Domestic international sales corpora-
tions (DISC):
International boycotts, countries re-
quiring cooperation (Notice 41)
28, 5; (Notice 65) 50, 5
Taxation of DISC income to share-
holders, T-bill rate ending 9/30/95
(RR 77) 47, 6
Employee plans:
Administrative:
Closing agreement program ex-
tended indefinitely (RP 52) 51,
14
Contributions and benefits:
Cost-of-living adjustments, dollar
limitations, 1996 (Notice 55) 45,
11
Limitations (RR 29A) 28, 4
Employee stock ownership plans:
Exercise of voting rights by trustee
(RR 57) 35, 5
Funding:
Change in method, automatic ap-
proval for specific methods (RP
51) 51, 6
Full funding limitations, weighted
average interest rate, July 1995
(Notice 42) 31, 4; Aug. 1995
(Notice 48) 36, 21; Sept. 1995
(Notice 49) 39, 18; Oct. 1995
(Notice 52) 43, 7; Nov. 1995
(Notice 63) 48, 8
Qualification:
Covered compensation tables,
1996 (RR 75) 46, 8
Highly compensated employees,
definition (RP 34) 29, 7
Issuance of notification letters,
certain regional prototype plans
(RP 42) 35, 20
Exempt organizations:
General:
Exercise of Commissioner’s dis-
cretionary authority under sec.
6033 (RP 48) 47, 13
INCOME TAX—Continued
Exempt organizations—Continued
General—Continued
Hurricane Opal assistance, relief
from certain providions (Notice
66) 51, 19
Lobbying and political expendi-
tures, reporting requirement ex-
ception (RP 35) 32, 51; (RP
35A) 40, 38
Qualification:
Virginia flood relief, emergency
assistance (Notice 47) 35, 17
Foreign tax credit:
Income source, certain countries (RR
63) 37, 4
International boycotts, countries re-
quiring cooperation (Notice 41)
28, 5; (Notice 65) 50, 5
Forms:
1040A & related schedules will be
input through Document Process-
ing System (RP 46) 46, 13
Gain or loss:
Recognition:
Nonrecognition of FCC certified
sales and exchanges, repealed
(PL 104–7) 29, 5
Gross income:
Exclusions-inclusions:
Fringe benefits, SIFL, aircraft
valuation formula (RR 66) 40, 4
Income source:
U.S. citizen abroad, waiver of resi-
dency requirements (RP 45) 44, 22
Insurance companies:
Life:
Differential earning rate for 1994
and recomputed rate for 1993
(RR 60) 35, 7
Reserves, health and accident pol-
icies (RR 80) 51, 4
Other than life or mutual:
Loss payment and discount fac-
tors, 1995 (RP 40) 36, 21
Salvage discount factors, 1995 (RP
41) 36, 28
Interest:
Investment:
Federal short-term, mid-term, and
long-term rates, July 1995 (RR
48) 27, 5; Aug. 1995 (RR 51)
32, 4; Sept. 1995 (RR 62) 36,
14; Oct. 1995 (RR 67) 41, 29;
Nov. 1995 (RR 73) 45, 6; Dec.
1995 (RR 79) 49, 4

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INCOME TAX—Continued
Interest—Continued
Paid:
Qualified stated interest, definition
(RR 70) 43, 4
Single premium annuity contract,
loan collateral (RR 53) 34, 17
Inventories:
LIFO:
Price indexes, department stores,
May 1995 (RR 50) 30, 4; June
1995 (RR 61) 35, 6; July 1995
(RR 65) 39, 4; Aug. 1995 (RR
72) 42, 4; Sept. 1995 (RR 76)
47, 5; Oct. 1995 (RR 82) 52, 7
REMIC residual interests (RR 81)
52, 6
Involuntary conversions:
Treatment of specific section 1033
transactions (PL 104–7) 29, 5
Levy:
Table, exempt from levy on wages,
salary, and other income (Notice
61) 47, 10
Liability for tax:
Contingent liabilities assumed in sec-
tion 351 exchanges (RR 74) 46, 6
Overpayments:
Adjusted interest rates (RR 59) 35,
10; (RR 78) 49, 4
Partnership:
Limited:
New York (RLLP) (RR 55) 35, 13
Penalties:
Substantial understatement (RP 55)
52, 34
Possessions of the United States:
Post-1993 section 936 elections (RP
37) 34, 21
Proposed regulations:
26 CFR 1.170A–1, 1.170A–13,
amended; 1.6115–1, added; de-
ductibility, substantiation, and dis-
closure of certain charitable contri-
butions (IA–44–94) 37, 41
26 CFR 1.351–1, amended; transfers
to investment companies (CO–19–
95) 38, 43
26 CFR 1.351–1(a)(3), 1.721–1(c),
added; treatment of underwriters
(CO–26–95) 38, 45
26 CFR 1.411(a)–11, 1.417(e)–1,
amended; notice, consent, and
election requirements (EE–24–93)
41, 33
26 CFR 1.584–2, 1.584–4, amended;
diversification of common trust
funds (PS–29–92) 36, 32
INCOME TAX—Continued
Proposed regulations—Continued
26 CFR 1.952–1, amended; 1.952–
2(c)(1), revised; 1.954–2(b)(3),
1.960–1(i), added; definition of
foreign base company income and
foreign personal holding company
income of a controlled foreign
corporation (INTL–75–92) 40, 39
26 CFR 1.1377–0, –1, –2, –3, added;
definitions under subchapter S for
S corporations and their share-
holders (PS–268–82) 31, 5
26 CFR 1.1502–1(f)(6), added; con-
solidated groups—intercompany
transactions and related rules (CO–
24–95) 32, 53
2 6 C F R 1 . 6 6 9 5 – 1 , r e v i s e d ;
301.6061–1, amended; methods of
signing (IA–10–95) 34, 27
26 CFR 301.6109–1, amended; tax-
payer identifying numbers (INTL–
24–94) 27, 33
26 CFR 301.6109–3, added; au-
thority of FCIC to require EINs,
withdrawal of regs. (Notice 62)
47, 12
26 CFR 301.6231(a)(7)–1, amended;
301.6231(a)(7)–2, added; selection
of tax matters partner for limited
liability companies (PS–34–92) 47,
15
26 CFR 301.7503–1, amended; time
for performance of acts where last
day falls on Saturday, Sunday, or
legal holiday (IA–36–91) 42, 10
26 CFR 301.7701–4(e), added; en-
vironmental settlement funds, clas-
sification (PS–54–94) 37, 48
Request for comments concerning
withdrawal (Notice 51) 42, 8
Rates of tax:
Income tax cost-of-living adjust-
ments, 1996 (RP 53) 52, 22
Regulations:
26 CFR 1.30–1, 1.179A–1, added;
definition of qualified electric ve-
hicle, recapture rules for qualified
electric vehicles, qualified clean-
fuel vehicle property, qualified
clean-fuel vehicle refueling prop-
erty (TD 8606) 36, 5
26 CFR 1.61–2, 1.217–2, amended;
1.61–22T, 1.217–2T, removed; al-
lowances received by members of
the Armed Forces in connection
with moves to new permanent duty
stations (TD 8607) 36, 8
INCOME TAX—Continued
Regulations—Continued
26 CFR 1.83–6, amended; deductions
for transfers of property (TD
8599) 33, 5
26 CFR 1.108–3, added; 1.167(a)–
11, 1.460–0, –4, 1.469–0, –1, –1T,
1.1502–17, –18, –20, –26, –33,
–79, –80, amended; 1.263A–1,
1.267(f)–1, 1.1502–13, revised;
1267(f)–1T, –2T, –3, 1.1502–13T,
–14, –14T, removed; consolidated
return intercompany transactions
system and related rules (TD
8597) 32, 6
26 CFR 1.162–20(c)(5) & (d),
1.162–28, 1.162–29, added; 1.162–
20T, removed; lobbying expense
deductions (TD 8602) 34, 5
26 CFR 1.170A–13(e), added &
reserved; 1.170A–13(f), added;
1.170A–13T, removed; substantia-
tion requirement for certain chari-
table contributions (TD 8623) 45,
4
2 6 C F R 1 . 2 7 4 – 2 , 1 . 2 7 4 – 5 T ,
amended; definition of club (TD
8601) 33, 8
26 CFR 1.338–0, 1.338–2, amended;
continuity of interest in transfer of
target assets after qualified stock
purchase of target (TD 8626) 46, 4
26 CFR 1.401(a)(31)–1T, 1.402(c)–
2T, 1.402(f)–2T, 1.403(b)–2T, re-
moved; 1.401(a)(31)–1, 1.402(c)–
2, 1.403(b)–2, added; 1.402(f)–1,
revised direct rollovers and 20-
percent withholding upon eligible
r o l l o v e r d i s t r i b u t i o n s f r o m
qualified plans (TD 8619) 41, 4
26 CFR 1.411(a)–11, 1.417(e)–1,
1.417(e)–1T, amended; 1.411(a)–
11T, added; notice, consent, and
election requirements (TD 8620)
41, 25
26 CFR 1.446–1, 1.481–1, –2, –3,
amended; 1.481–4, –6, removed;
1.481–5 redesignated 1.481–4 &
revised; 1.481–5, added; require-
ments for changes in method of
accounting (TD 8608) 36, 10
26 CFR 1.860A–0, 1.860G–1,
amended; 1.860A–1(b)(4), added;
1.860G–1T, removed; real estate
mortgage investment conduits (TD
8614) 38, 4

SEQ 0019 JOB L36-054-008 PAGE-0213 INDEX
REVISED 28MAY96 AT 09:33 BY LR DEPTH: 65.01 PICAS WIDTH 46 PICAS
COMPOSITE COLOR
778/20047/28MAY96/L36-054
213
INCOME TAX—Continued
Regulations—Continued
26 CFR 1.863–1(d), added; special
rules for determining sources of
scholarships and fellowship grants
(TD 8615) 39, 5
26 CFR 1.871–1 (b) (7), 1.881–0, –3,
–4, 1.1441–3(j), 1.1441–7(d),
1.6038A–3(b)(5) & (c)(2)(vii),
1.7701(1)–1, added; conduit fi-
nancing arrangements (TD 8611)
37, 20
26 CFR 1.904–0, amended; 1.904(i)–
1, added; limitation on use of
deconsolidation to avoid foreign
tax credit limitations (TD 8627)
48, 4
26 CFR 1.952–3, 1.954A–1, –2,
1.957–1T, removed; 1.954–0, –1,
–2, Part 4, added; 1.957–1, 4.954–
0, amended; 1.954–0T, –1T, –2T
redesignated 4.954–0, –1, –2; defi-
nition of controlled foreign corpo-
ration, foreign base company in-
come and foreign personal holding
company income of a controlled
foreign company (TD 8618) 40, 4
26 CFR 1.1015–5, amended; marital
deduction provisions (TD 8612)
38, 7
26 CFR 1.1361–0, revised; 1.1361–1,
amended; definition of an S corpo-
ration (TD 8600) 33, 10
26 CFR 1.1502–13T, added; consoli-
dated groups—intercompany trans-
actions and related rules (TD
8598) 32, 47
INCOME TAX—Continued
Regulations—Continued
26 CFR 1.6091–2, 301.6852–1,
301.7409–1, added; 301.6211–1,
301.7611–1, and intermediate sec-
tions, amended; political expendi-
tures by sec. 501(c)(3) organiza-
tions (TD 8628) 52, 9
26 CFR 1.6662–0, –2, –3, –4,
1.6664–0, –1, –4, amended;
1.6662–1, revised; 1.6662–7,
a d d e d ; 1 . 6 6 6 2 – 7 T , r e m o v e d ;
accuracy-related penalty (TD
8617) 39, 9
26 CFR 1.6695–1T, 301.6061–1T,
added; methods of signing (TD
8603) 34, 18
26 CFR 1.7704–1, added; classifica-
tion of certain publicly traded
partnerships as corporations (TD
8629) 52, 14
26 CFR 301.6109–2, amended; au-
thority of Sec. of Agriculture to
share EIN collected from retail
food stores and wholesale food
concerns (TD 8621) 43, 5
2 6 C F R 3 0 1 . 6 8 6 7 – 1 , a d d e d ;
301.6867–1T, removed; presump-
tions where owner of large amount
of cash is not identified (TD 8605)
36, 17
26 CFR 301.7514–1, amended; seals
of office (TD 8625) 46 10
26 CFR 301.7701(i)–0—301.7701(i)–
4, added; taxable mortgage pools
(TD 8610) 37, 13
INCOME TAX—Continued
Regulations—Continued
Request for comments concering re-
moval (Notice 51) 42, 8
Reorganizations:
Continuity of proprietary interest,
distribution to partners (RR 69)
42, 4
Returns:
Electronic filing, Form 1040 (RP 49)
50, 5
Information, magnetic media, wage
and tax statements, Puerto Rico,
Virgin Islands, Guam and Ameri-
can Samoa (Notice 64) 50, 5
Information, reproduction of Forms
1096, 1098, 1099 Series, 5498,
and W–2G (RP 30) 27, 9
Magnetic media reporting, Forms
1098, 1099 series, 5498, and W–
2G (RP 29A) 30, 5
Rulings:
Obsolete, conduit rev. ruls. (RR 56)
36, 20
Obsolete procedures as a result of
Regulatory Reinvention Initiative
(RP 44) 42, 9
Obsolete rulings as result of Regula-
tory Reinvention Initiative (RR 71)
42, 7
Self-employment tax:
Social Security contribution and ben-
efit base 46, 16
Travel expenses:
Per diem allowance procedure to be
issued (Notice 67) 52, 35

SEQ 0020 JOB L36-054-008 PAGE-0214 INDEX
REVISED 28MAY96 AT 09:33 BY LR DEPTH: 65.01 PICAS WIDTH 32.10 PICAS
COMPOSITE COLOR
778/20047/28MAY96/L36-054
214
NOTES