Internal Revenue Bulletin 2018-1 (PDF rendition): IRS Revenue Procedures

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# INTERNAL REVENUE BULLETIN

4
IRS

Bulletin No. 2018-1
January 2, 2018

## HIGHLIGHTS OF THIS ISSUE

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

## ADMINISTRATIVE

### Rev. Proc. 2018-1, page 1.

This procedure contains revised procedures for letter rul-
ings and information letters issued by the Associate Chief
Counsel (Corporate), Associate Chief Counsel (Financial In-
stitutions and Products), Associate Chief Counsel (Income
Tax and Accounting), Associate Chief Counsel (Interna-
tional), Associate Chief Counsel (Passthroughs and Special
Industries), Associate Chief Counsel (Procedure and Admin-
istration), and Associate Chief Counsel (Tax Exempt and
Government Entities). This procedure also contains revised
procedures for determination letters issued by the Large
Business and International Division, Small Business/Self Em-
ployed Division, Wage and Investment Division, and Tax
Exempt and Government Entities Division. Rev. Proc.
2017-1 superseded.

### Rev. Proc. 2018-2, page 106.

These procedures explain when and how an Associate office
within the Office of Chief Counsel provides technical advice,
conveyed in technical advice memoranda (TAMs). It also ex-
plains the rights that a taxpayer has when a field office re-
quests a TAM regarding a tax matter. Rev. Proc. 2017-2
superseded.

### Rev. Proc. 2018-3, page 130.

The revenue procedure provides a revised list of areas of the
Code under the jurisdiction of the Associate Chief Counsel
(Corporate), the Associate Chief Counsel (Financial Institutions
and Products), the Associate Chief Counsel (Income Tax and
Accounting), the Associate Chief Counsel (Passthroughs and
Special Industries), the Associate Chief Counsel (Procedure
and Administration), and the Associate Chief Counsel (Tax
Exempt and Government Entities) relating to matters on which
the Service will not issue letter rulings or determination letters.
Rev. Proc. 2017-3, 2017-1 I.R.B. 130 is superseded.

## EMPLOYEE PLANS

### Rev. Proc. 2018-4, page 146.

This procedure contains revised procedures for determination
letters and letter rulings issued by the Commissioner, Tax Exempt
and Government Entities Division, Employee Plans Rulings and
Agreements Office. Rev. Proc. 2017-4 is superseded.

## EXEMPT ORGANIZATIONS

### Rev. Proc. 2018-5, page 233.

This revenue procedure sets forth procedures for issuing de-
termination letters on issues under the jurisdiction of the Di-
rector, Exempt Organizations (EO) Rulings and Agreements.
Specifically, it explains the procedures for issuing determina-
tion letters on exempt status (in response to applications for
recognition of exemption from Federal income tax under § 501
or § 521 other than those subject to Rev. Proc. 2018-4, this
Bulletin (relating to pension, profit-sharing, stock bonus, annu-
ity, and employee stock ownership plans)), private foundation
status, and other determinations related to exempt organiza-
tions. These procedures also apply to revocation or modifica-
tion of determination letters. This revenue procedure also
provides guidance on the exhaustion of administrative reme-
dies for purposes of declaratory judgment under § 7428.
Finally, this revenue procedure provides guidance on applica-
ble user fees for requesting determination letters.

## INCOME TAX

Rev. Proc. 2018-7, page 271.

Areas in which rulings will not be issued. Associate Chief
Counsel (International).

Finding Lists begin on page ii.

## The IRS Mission

Provide America's taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.

## Introduction

The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal 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, identify-
ing details and information of a confidential nature are deleted
to prevent unwarranted invasions of privacy and to comply with
statutory requirements.

Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

### Part I .- 1986 Code.

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

### Part II .- Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A, Tax
Conventions and Other Related Items, and Subpart B, Legisla-
tion and Related Committee Reports.

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

### Part IV .- Items of General Interest.

This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index for
the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

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

## Part III. Administrative, Procedural, and Miscellaneous

26 CFR § 601.201: Rulings and determination letters.

### Rev. Proc. 2018-1

# TABLE OF CONTENTS

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

.01 Description of terms used in this revenue procedure

.02 Updated annually

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

.01 Letter ruling

.02 Closing agreement

.03 Determination letter

.04 Information letter

.05 Oral advice

(1) No oral rulings and no written rulings in response to oral requests

(2) Discussion possible on substantive issues

(3) Oral guidance is advisory only, and the Service is not bound by it.

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

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

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

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

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

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

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

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

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

.01 Issues involving alcohol, tobacco, and firearms taxes

.02 Certain issues involving employee plans, individual retirement accounts (IRAs), and exempt organizations

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

.01 In income and gift tax matters

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

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

(1) Format of request

(2) Period of limitation

(3) Taxpayer must notify the Associate office if examination of its return begins while the request is pending

(4) Associate office will notify the examination agent, appeals officer, or attorney of a § 301.9100 request if the taxpayer's return is being examined by a Field office or is being considered by an Appeals office or a Federal court

(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009-41

(6) Relief for late initial classification election

.04 Determinations under § 999(d)

.05 In matters involving § 367

.06 In estate tax matters

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

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

.09 In generation-skipping transfer tax matters

.10 In employment and excise tax matters

.11 In procedural and administrative matters

.12 In Indian tribal government matters

(1) Definition of Indian tribal government

(2) Inclusion in list of tribal governments.

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

.14 In exempt organizations matters

.15 In qualified retirement plan and IRA matters

.16 A request to revoke an election

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

(1) Answer is clear or is reasonably certain

(2) Answer is not reasonably certain

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

.01 Ordinarily not if the request involves an issue under examination or consideration or in litigation

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

.03 Ordinarily not on part of an integrated transaction.

(1) General rule

(2) Significant issue ruling

(3) Submission requirements

.04 Ordinarily not on which of two entities is a common law employer

.05 Ordinarily not to business associations or groups.

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

.07 Ordinarily not to foreign governments

.08 Ordinarily not on Federal tax consequences of proposed legislation

.09 Ordinarily not before issuance of a regulation or other published guidance

.10 Not on frivolous issues.

.11 No "comfort" letter rulings

.12 Not on alternative plans or hypothetical situations

.13 Not on property conversions after return filed

.14 Circumstances under which determination letters are not issued by a Director

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

.01 Documents and information required in all requests

(1) Complete statement of facts and other information

(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents pertinent to the transaction, and foreign laws.

(3) Analysis of material facts

(4) Statement regarding whether same issue is in an earlier return and additional information required for § 301.9100 requests

(5) Statement regarding whether same or similar issue was previously ruled on or whether a request involving it was submitted or is currently pending

(6) Statement regarding interpretation of a substantive provision of an income or estate tax treaty

(7) Statement regarding involvement of a transactional party located in a foreign country

(8) Letter from Bureau of Indian Affairs relating to a letter ruling request for recognition of Indian tribal government status or status as a political subdivision of an Indian tribal government.

(9) Statement of supporting authorities

(10) Statement of contrary authorities

(11) Statement identifying pending legislation

(12) Statement identifying information to be deleted from the public inspection copy of letter ruling or determination letter

(13) Signature by taxpayer or authorized representative

(14) Authorized representatives.

(15)

Power of attorney and declaration of representative

(16)

Penalties of perjury statement

(17)

Number of copies of request to be submitted

(18)

Sample format for a letter ruling request

(19)

Checklist for letter ruling requests.

.02

Additional procedural information required with request

(1)

To request separate letter rulings for multiple issues in a single situation

(2)

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

(3)

To request a particular conclusion on a proposed transaction

(4) To request expedited handling

(5)

To request the receipt of any document related to letter ruling request by fax

(6)

To request a conference

.03

Additional information required in letter ruling requests involving welfare benefit funds (including voluntary

employees' beneficiary associations (VEBAs))

(1) Request for letter rulings on the tax consequences of a proposed transaction involving a welfare benefit fund

(2) Code sections to consider.

.04

Address to which to send request for letter ruling or determination letter.

(1)

Request for letter ruling

(2) Request for determination letter.

.05

Pending letter ruling requests.

(1)

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

(2)

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

.06

When to attach letter ruling or determination letter to return

.07

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

.08

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

(1)

In general

(2) Notification of appropriate Service official

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

.01

Docket, Records, and User Fee Branch receives, initially controls, and refers the requests

to the appropriate Associate office

.02

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

.03

Determines if transaction can be modified to obtain favorable letter ruling

.04

Not

bound by informal opinion expressed

.05

May request additional information

(1)

Additional information must be submitted within 21 calendar days

(2)

Extension of reply period if justified and approved

(3)

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

(4) Penalties of perjury statement

(5)

Faxing request and additional information

(6) Address to which to send additional information

(7) Identifying information.

(8)

Number of copies

.06

Near the completion of the ruling process, advises the taxpayer of conclusions and, if the

Associate offices will rule adversely, offers the taxpayer the opportunity to withdraw the letter ruling request

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

.08 Issues separate letter rulings for substantially identical letter rulings, but generally issues a single letter

ruling for related § 301.9100 letter rulings

(1) Substantially identical letter rulings.

(2) Related § 301.9100 letter rulings

.09 Sends a copy of the letter ruling to appropriate Service official

## SECTION 9. WHAT ARE THE SPECIFIC AND ADDITIONAL PROCEDURES FOR A REQUEST FOR A

.01

Automatic and non-automatic change in method of accounting requests. CHANGE IN METHOD OF ACCOUNTING FROM THE ASSOCIATE OFFICES?

(1) Automatic change in method of accounting.

(2) Non-automatic change in method of accounting.

.02 Ordinarily only one change in method of accounting on a Form 3115, Application for Change in Accounting

Method, and a separate Form 3115 for each taxpayer and for each separate and distinct trade or business

.03

Information required with a Form 3115

(1)

Facts and other information requested on Form 3115 and in applicable revenue procedures

(2) Statement of contrary authorities

(3) Copies of all contracts, agreements, and other documents

(4) Analysis of material facts.

(5) Information regarding whether same issue is in an earlier return

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

(7) Statement identifying pending legislation

(8) Authorized representatives

(9) Power of attorney and declaration of representative.

(10) Tax Information Authorization

(11) Penalties of perjury statement

.04

Additional procedural information required in certain circumstances.

(1) Recipients of original and copy of change in method of accounting correspondence

(2) To request expedited handling

(3) To receive the change in method of accounting letter ruling or any other correspondence related to Form 3115 by fax

(4) To request a confered

.05

Addresses to which to send Forms 3115

(1) Non-automatic Form 3115

(2) Automatic change request

.06

A Form 3115 must not be submitted by fax

.07

Docket, Records, and User Fee Branch receives, initially controls, and refers the

Form 3115 to the appropriate Associate office

.08

Additional information

(1) Reply period.

(2) Request for extension of reply period.

(3) Penalties of perjury statement for additional information

(4) Identifying information included in additional information

(5) Faxing information request and additional information

(6) Address to which to send additional information to an Associate office

(7) Failure to timely submit additional information to an Associate office.

.09

Circumstances in which the taxpayer must notify the Associate office

.10

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

.11

Near the completion of processing the Form 3115, advises the taxpayer if the Associate

office will rule adversely and offers the taxpayer the opportunity to withdraw Form 3115

.12

Non-automatic Form 3115 may be withdrawn or Associate office may decline to issue

a change in method of accounting letter ruling

(1) In general

(2) Notification of appropriate Service official.

.13

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

.14

Service is not bound by informal opinion

.15

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

.16

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

.17

Consent Agreement

.18

A copy of the change in method of accounting letter ruling is sent to appropriate Service official.

.19

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

.20

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

.21

Associate office discretion to permit requested change in method of accounting.

.22

List of automatic change in method of accounting request procedures

.23

Other sections of this revenue procedure that are applicable to Form 3115

SECTION 10. HOW ARE CONFERENCES FOR LETTER RULINGS SCHEDULED?

.01

Schedules a conference if requested by taxpayer

.02

Permits taxpayer one conference of right

.03

Disallows verbatim recording of conferences

.04

Makes tentative recommendations on substantive issues

.05

May offer additional conferences

.06

Requires written confirmation of information presented at conference

.07 May schedule a pre-submission conference

(1) Taxpayer may request a pre-submission conference in writing or by telephone

(2) Pre-submission conference held in person or by telephone

(3) Certain information required to be submitted to the Associate office prior to the pre-submission conference

(4) Discussion of substantive issues not binding on the Service

.08

May schedule a conference to be held by telephone

SECTION 11. WHAT EFFECT WILL A LETTER RULING HAVE?

.01

May be relied on subject to limitations

.02

Will not apply to another taxpayer

.03 Will be used by a Field office in examining the taxpayer's return.

.04

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

.05

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

.06

Not otherwise generally revoked or modified retroactively

.07

Retroactive effect of revocation or modification applied to a particular transaction

.08

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

.09

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

.10

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

.11 Taxpayer 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. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS?

.01

In income and gift tax matters

.02

In estate tax matters

.03 In generation-skipping transfer tax matters

.04 In employment and excise tax matters

.05 Requests concerning income, estate, or gift tax returns

.06 Review of determination letters

SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?

.01

Has same effect as a letter ruling

.02

Taxpayer 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 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN A

DIRECTOR AND AN ASSOCIATE OFFICE?

.01 Requests for determination letters

.02

No-rule areas.

.03 Requests for letter rulings

.04 Letter ruling request mistakenly sent to a Director

SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER

RULINGS AND DETERMINATION LETTERS?

.01 Legislation authorizing user fees

.02 Requests to which a user fee applies

.03 Requests to which a user fee does not apply

.04 Exemptions from the user fee requirements

.05 Fee schedule

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

(1) Requests involving several offices

(2) Requests involving several fee categories

(3) Requests involving several issues

(4) Requests involving several unrelated transactions

(5) Requests involving several entities

(6) Requests made by married taxpayers who file jointly

.07 Applicable user fee for requests for substantially identical letter rulings, closing agreements, or identical changes in

method of accounting.

(1) In general

(2) Substantially identical letter rulings and closing agreements

(3) Substantially identical plans under § 25(c)(2)(B)

(4) Identical changes in method of accounting and related § 301.9100 letter rulings

.08 Method of payment

.09 Effect of nonpayment or payment of incorrect amount

.10 Refunds of user fee

.11 Request for reconsideration of user fee

SECTION 16. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2017-1?

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

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

SECTION 19. PAPERWORK REDUCTION ACT

DRAFTING INFORMATION

INDEX

APPENDIX A-SCHEDULE OF USER FEES

APPENDIX B-SAMPLE FORMAT FOR A LETTER RULING REQUEST

APPENDIX C-CHECKLIST FOR A LETTER RULING REQUEST

APPENDIX D-ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLAN RULING REQUESTS

APPENDIX E-ADDITIONAL CHECKLIST FOR CHURCH PLAN RULING REQUESTS

APPENDIX F-LIST OF SMALL BUSINESS/SELF-EMPLOYED OPERATING DIVISION (SB/SE)

OFFICES TO WHICH TO SEND REQUESTS FOR DETERMINATION LETTERS

APPENDIX G-CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR

REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES

.01 Checklists, guideline revenue procedures, and notices

.02 Safe harbor revenue procedures

101

.03 Automatic change in accounting period revenue procedures

105

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

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

Description of terms used
in this revenue procedure

.01 For purposes of this revenue procedure-

(1) the term "Service" includes the four operating divisions of the Internal Revenue Service and
the Associate offices. The four operating divisions are:

(a) Large Business & International Division (LB&I), which generally serves corporations,
including S corporations, and partnerships, with assets in excess of $10 million;

(b) Small Business/Self-Employed Division (SB/SE), which generally serves corporations,
including S corporations, and partnerships, with assets less than or equal to $10 million; filers of
gift, estate, excise, employment and fiduciary returns; individuals filing an individual Federal
income tax return with accompanying Schedule C (Profit or Loss From Business (Sole Propri-
etorship)), Schedule E (Supplemental Income and Loss), Schedule F (Profit or Loss From
Farming), Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee
Business Expenses;

(c) Wage and Investment Division (W&I), which generally serves individuals with wage and
investment income only (and with no international tax returns) filing an individual Federal income
tax return without accompanying Schedule C, E, or F, or Form 2106 or Form 2106-EZ; and

(d) Tax Exempt and Government Entities Division (TE/GE), which serves three distinct
taxpayer segments: employee plans (including IRAs), exempt organizations, and government
entities.

(2) the term "Associate office" refers to the Office of Associate Chief Counsel (Corporate), the
Office of Associate Chief Counsel (Financial Institutions and Products), the Office of Associate
Chief Counsel (Income Tax and Accounting), the Office of Associate Chief Counsel (Interna-
tional), the Office of Associate Chief Counsel (Passthroughs and Special Industries), the Office
of Associate Chief Counsel (Procedure and Administration), or the Office of Associate Chief
Counsel (Tax Exempt and Government Entities), as appropriate.

(3) the term "Director" refers to the Director, Field Operations, LB&I; Director, Field
Examination, SB/SE; Director, Specialty Examination Policy, SB/SE; Program Manager, Estate
& Gift Tax Policy, SB/SE; Program Manager, Employment Tax Policy, SB/SE; Program
Manager, Excise Tax Policy, SB/SE; Director, Compliance, W&I; Director, Employee
Plans; Director, Employee Plans, Rulings and Agreements; Director, Employee Plans Examina-
tions; Director, Exempt Organizations; Director, Exempt Organizations, Rulings and Agreements;
Director, Exempt Organizations Examinations; Director, Indian Tribal Governments and Tax
Exempt Bonds, as appropriate.

(4) the term "Field office" refers to the respective offices of the Directors, as appropriate.

(5) the term "taxpayer" includes all persons subject to any provision of the Internal Revenue
Code and, when appropriate, their representatives. More specifically, the term includes tax-
exempt organizations, as well as issuers of tax-exempt obligations, mortgage credit certificates,
and tax credit bonds.

### Updated annually

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

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

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

### Letter ruling

.01 A "letter ruling" is a written determination issued to a taxpayer by an Associate office in
response to the taxpayer's written inquiry, filed prior to the filing of returns or reports that are
required by the tax laws, about its status for tax purposes or the tax effects of its acts or
transactions. A letter ruling interprets the tax laws and applies them to the taxpayer's specific set
of facts. A letter ruling is issued when appropriate in the interest of sound tax administration. One
type of letter ruling is an Associate office's response granting or denying a request for a change
in a taxpayer's method of accounting or accounting period. Once issued, a letter ruling may be
revoked or modified for a number of reasons. See section 11 of this revenue procedure. A letter
ruling may be issued with a closing agreement, however, and a closing agreement is final unless
fraud, malfeasance, or misrepresentation of a material fact can be shown. See section 2.02 of this
revenue procedure.

Letter rulings are subject to exchange of information under U.S. tax treaties or tax information
exchange agreements in accordance with the terms of such treaties and agreements (including
terms regarding relevancy, confidentiality, and the protection of trade secrets.)

### Closing agreement

.02 A "closing agreement" is a final agreement between the Service and a taxpayer on a specific
issue or liability. It is entered into under the authority in § 7121, and it is final unless fraud,
malfeasance, or misrepresentation of a material fact can be shown.

A taxpayer may request a closing agreement with a letter ruling or in lieu of a letter ruling, with
respect to a transaction that would be eligible for a letter ruling. In such situations, the Associate
Chief Counsel with subject matter jurisdiction signs the closing agreement on behalf of the
Service.

A closing agreement may be entered into when it is advantageous to have the matter
permanently and conclusively closed or when a taxpayer can show that there are good reasons for
an agreement and that making the agreement will not prejudice the interests of the Government.
In appropriate cases, a taxpayer may be asked to enter into a closing agreement as a condition for
the issuance of a letter ruling.

If, in a single case, a closing agreement is requested for each person or entity in a class of
taxpayers, separate agreements are entered into only if the class consists of 25 or fewer taxpayers.
If the issue and holding are identical for the class and there are more than 25 taxpayers in the
class, a "mass closing agreement" will be entered into with the taxpayer who is authorized by the
others to represent the class.

Determination letter

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

Information letter

.04 An "information letter" is a statement issued by an Associate office or Director that calls attention to a well-established interpretation or principle of tax law (including a tax treaty) without applying it to a specific set of facts. An information letter may be issued if the taxpayer's inquiry indicates a need for general information or if the taxpayer's request does not meet the requirements of this revenue procedure and the Service concludes that general information will help the taxpayer. An information letter is advisory only and has no binding effect on the Service. If the Associate office issues an information letter in response to a request for a letter ruling that does not meet the requirements of this revenue procedure, the information letter is not a substitute for a letter ruling. The taxpayer should provide a daytime telephone number with the taxpayer's request for an information letter.

Information letters that are issued by the Associate offices to members of the public are made available to the public. Information letters that are issued by the Field offices are generally not made available to the public.

Because information letters do not constitute written determinations as defined in § 6110, they are not subject to public inspection under § 6110. The Service makes the information letters available to the public under the Freedom of Information Act (the "FOIA"). Before any information letter is made available to the public, an Associate office will redact any information exempt from disclosure under the FOIA. See, e.g., 5 U.S.C. § 552(b)(6) (exemption for infor- mation the disclosure of which would constitute a clearly unwarranted invasion of personal privacy); 5 U.S.C. § 552(b)(3) in conjunction with § 6103 (exemption for returns and return information as defined in § 6103(b)).

The following documents also will not be available for public inspection as part of this process:

(1) transmittal letters in which the Service furnishes publications or other publicly available material to taxpayers, without any significant legal discussion;

(2) responses to taxpayer or third party contacts that are inquiries with respect to a pending request for a letter ruling, technical advice memorandum, or Chief Counsel Advice (which are subject to public inspection under § 6110 after their issuance); and

(3) responses to taxpayer or third party communications with respect to any investigation, audit, litigation, or other enforcement action.

Oral Advice

.05 (1) No oral rulings and no written rulings in response to oral requests. The Service does not orally issue letter rulings or determination letters, nor does it issue letter rulings or determi- nation letters in response to oral requests from taxpayers. Service employees ordinarily will discuss with taxpayers or their representatives inquiries about whether the Service will rule on particular issues and about procedural matters regarding the submission of requests for letter rulings or determination letters for a particular case.

(2) Discussion possible on substantive issues. At the discretion of the Service and as time
permits, Service employees may also discuss substantive issues with taxpayers or their represen-
tatives. Such a discussion will not bind the Service or the Office of Chief Counsel, and it cannot
be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).

Service employees who are not directly involved in the examination, appeal, or litigation of
particular substantive tax issues will not discuss those issues with taxpayers or their representa-
tives unless the discussion is coordinated with Service employees who are directly involved. The
taxpayer or the taxpayer's representative ordinarily will be asked whether an oral request for
advice or information relates to a matter pending before another office of the Service or before
a Federal court.

If a tax issue is not under examination, in appeals, or in litigation, the tax issue may be
discussed even though the issue is affected by a nontax issue pending in litigation.

A taxpayer may seek oral technical guidance from a taxpayer service representative in a Field
office or Service Center when preparing a return or report.

The Service does not respond to letters seeking to confirm the substance of oral discussions,
and the absence of a response to such a letter is not a confirmation.

(3) Oral guidance is advisory only, and the Service is not bound by it. Oral guidance is
advisory only, and the Service is not bound by it, for example, when examining the taxpayer's
return.

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

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

Except as provided in section 6.14 of this revenue procedure, taxpayers also may request
determination letters from the Director in the appropriate operating division. See sections 7 and
12 of this revenue procedure. For determination letters from TE/GE, see Rev. Proc. 2018-4 and
Rev. Proc. 2018-5, this Bulletin.

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

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

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

.02 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
Products) include those that involve income taxes and changes in method of accounting of banks,
savings and loan associations, real estate investment trusts (REITs), regulated investment com-
panies (RICs), real estate mortgage investment conduits (REMICs), insurance companies and
products, tax-exempt obligations, mortgage credit certificates, tax credit bonds (including spec-
ified tax credit bonds), build America bonds, and financial products.

For the procedures to obtain private letter rulings involving tax-exempt state and local
obligations, see Rev. Proc. 96-16, 1996-1 C.B. 630.

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

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

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

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

For the procedures to obtain advance pricing agreements under § 482, see Rev. Proc. 2015-41,
2015-35 I.R.B. 263.

For competent authority procedures related to bilateral and multilateral advance pricing
agreements, see Rev. Proc. 2015-40, 2015-35 I.R.B. 236.

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

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

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

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

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

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

Note that certain issues involving exempt organizations, employee plans, and government entities
fall under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division
of the Internal Revenue Service. See Rev. Proc. 2018-4 and Rev. Proc. 2018-5 this Bulletin.

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

### Issues involving alcohol, tobacco, and firearms taxes

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

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

.02 The procedures for obtaining certain letter rulings, closing agreements, determination
letters, information letters, and oral advice on qualified retirement plans and IRAs that are under
the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division are provided
in Rev. Proc. 2018-4, this Bulletin. Rev. Proc. 2018-4, this Bulletin, also includes the proce-
dures for issuing determination letters on the qualified status of pension, profit-sharing, stock
bonus, annuity, and employee stock ownership plans under §§ 401, 403(a), 409, and 4975(e)(7),
and the status for exemption of any related trusts or custodial accounts under § 501(a). See also
Rev. Proc. 2018-5, this Bulletin, for the procedures for issuing determination letters on the
tax-exempt status of organizations under § 501 and § 521, the foundation status of organizations
described in § 501(c)(3) and the foundation status of nonexempt charitable trusts described in
§ 4947(a)(1).

For the user fee requirements applicable to requests under the jurisdiction of the Commissioner,
Tax Exempt and Government Entities Division, see Section 30 of Rev. Proc. 2018-4, and Section
14 of Rev. Proc. 2018-5 this Bulletin.

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

In income and gift tax matters

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

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

.02 In lieu of requesting a letter ruling under this revenue procedure, a taxpayer may obtain relief for certain late S corporation and related elections by following the procedure in Rev. Proc. 2013-30, 2013-36 I.R.B. 173. This procedure is in lieu of the letter ruling process and does not

Sec. 4.01
January 2, 2018

require payment of any user fee. See section 3.01 of Rev. Proc. 2013-30, and section 15.03(3) of
this revenue procedure.

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

.03 An Associate office will consider a request for an extension of time for making an election
or other application for relief under § 301.9100-3 of the Treasury Regulations, even if submitted
after the return covering the issue presented in the § 301.9100 request has been filed, an
examination of the return has begun, or the issues in the return are being considered by Appeals
or a Federal court. Except for certain requests pertaining to applications for recognition of tax
exemption under the jurisdiction of the Commissioner, Tax Exempt and Government Entities
Division, a § 301.9100 request is a letter ruling request. Therefore, the § 301.9100 request should
be submitted pursuant to this revenue procedure. However, a § 301.9100 request involving
recharacterization of an IRA (see § 1.408A-5, Q&A-6) should be submitted pursuant to Rev.
Proc. 2018-4. An election made pursuant to § 301.9100-2 for an automatic extension of time is
not a letter ruling request and does not require payment of any user fee. See § 301.9100-2(d) and
section 15.03(1) of this revenue procedure.

(1) Format of request. A § 301.9100 request (other than an election made pursuant to
§ 301.9100-2 and certain requests pertaining to applications for recognition of tax exemption
under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division) must
be in the general form of, and meet the general requirements for, a letter ruling request. These
requirements are given in section 7 of this revenue procedure. A § 301.9100 request must include
an affidavit and declaration from the taxpayer and other parties having knowledge or information
about the events that led to the failure to make a valid regulatory election and to the discovery of
the failure. See §§ 301.9100-3(e)(2) and (e)(3). In addition, a § 301.9100 request must include
the information required by § 301.9100-3(e)(4).

(2) Period of limitation. The filing of a request for relief under § 301.9100 does not suspend
the running of any applicable period of limitation. See § 301.9100-3(d)(2). The Associate office
ordinarily will not issue a § 301.9100 ruling if the period of limitation on assessment under
§ 6501(a) for the taxable year in which an election should have been made, or for any taxable
years that would have been affected by the election had it been timely made, will expire before
receipt of a § 301.9100 letter ruling. See § 301.9100-3(c)(1)(ii). If, however, the taxpayer
consents to extend the period of limitation on assessment under § 6501(c)(4) for the taxable year
in which the election should have been made and for any taxable years that would have been
affected by the election had it been timely made, the Associate office may issue the letter ruling.
See § 301.9100-3(d)(2). Note that the filing of a claim for refund under § 6511 does not extend
the period of limitation on assessment. If § 301.9100-3 relief is granted, the Associate office may
require the taxpayer to consent to an extension of the period of limitation on assessment. See
§ 301.9100-3(d)(2).

(3) Taxpayer must notify the Associate office if examination of its return begins while the
request is pending. The taxpayer must notify the Associate office if the Service begins an
examination of the taxpayer's return for the taxable year in which an election should have been
made, or for any taxable years that would have been affected by the election had it been timely
made, while a § 301.9100-3 request is pending. This notification must include the name and
telephone number of the examining agent. See § 301.9100-3(e)(4)(i) and section 7.05(1)(b) of
this revenue procedure.

(4) Associate office will notify examination agent, appeals officer, or attorney of a
§ 301.9100 request if the taxpayer's return is being examined by a Field office or is being
considered by an Appeals office or a Federal court. If the taxpayer's return for the taxable year
in which an election should have been made, or for any taxable years that would have been
affected by the election had it been timely made, is being examined by a Field office or considered
by an Appeals office or a Federal court, the Associate office will notify the appropriate

Sec. 5.03

examination agent, appeals officer, or attorney that a § 301.9100 request has been submitted to
the Associate office. The examination agent, appeals officer, or attorney is not authorized to deny
consideration of a § 301.9100 request. The letter ruling will be mailed to the taxpayer and a copy
will be sent to the appeals officer, attorney, or appropriate Service official in the operating
division that has examination jurisdiction over the taxpayer's tax return.

(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009-41. Eligible entities
requesting a letter ruling because they do not meet all of the eligibility requirements of section
4.01 of Rev. Proc. 2009-41, 2009-39 I.R.B. 439, must include either the following representa-
tion as part of the entity's request for a letter ruling or an explanation regarding why they do not
qualify to do so: "All required U.S. tax and information returns of the entity (or, if the entity was
not required to file any such returns under the desired classification, then all required U.S. tax and
information returns of each affected person as defined in Section 4.02 of Rev. Proc. 2009-41)
were filed timely or within 6 months of the due date of the respective return (excluding
extensions) as if the entity classification election had been in effect on the requested date. No U.S.
tax or information returns were filed inconsistently with those described in the prior sentence."

(6) Relief for late initial classification election. In lieu of requesting a letter ruling under
§ 301.9100-1 through § 301.9100-3 and this revenue procedure, entities that satisfy the
requirements set forth in section 4.01 of Rev. Proc. 2009-41, 2009-39 I.R.B. 439, may apply for
late classification election relief under Rev. Proc. 2009-41. Requests for such relief are not
subject to user fees. See section 3.01 of Rev. Proc. 2009-41 and section 15.03(2) of this revenue
procedure.

Determinations under
§ 999(d)

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

### In matters involving § 367

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

### In estate tax matters

.06 In general, the Associate Chief Counsel (Passthroughs and Special Industries) issues letter
rulings on transactions affecting the estate tax on the prospective estate of a living person. The
Associate office will not issue letter rulings for prospective estates on computations of tax,
actuarial factors, or factual matters. With respect to the transactions affecting the estate tax of the
decedent's estate, generally the Associate office issues letter rulings before the decedent's estate
tax return is filed.

If the taxpayer is requesting a letter ruling regarding a decedent's estate tax and the estate tax
return is due to be filed before the letter ruling is expected to be issued, the taxpayer should obtain

an extension of time for filing the return and should notify the Associate office branch considering
the letter ruling request that an extension has been obtained.

If the return is filed before the letter ruling is received from the Associate office, the taxpayer
must disclose on the return that a letter ruling has been requested, attach a copy of the pending
letter ruling request to the return, and notify the Associate office that the return has been filed. See
section 7.05(2) of this revenue procedure. The Associate office will make every effort to issue the
letter ruling within 3 months of the date the return was filed.

If the taxpayer requests a letter ruling after the return is filed, but before the return is examined,
the taxpayer must notify the Field office having jurisdiction over the return that a letter ruling has
been requested, attach a copy of the pending letter ruling request, and notify the Associate office
that a return has been filed. See section 7.05(2) of this revenue procedure. The Associate office
will make every effort to issue the letter ruling within 3 months of the date the return has been
filed.

If the letter ruling cannot be issued within that 3-month period, the Associate office will notify
the Field office having jurisdiction over the return, which may, by memorandum to the Associate
office, grant an additional period for the issuance of the letter ruling.

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

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

In matters involving
qualified domestic trusts
under § 2056A

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

### In generation-skipping transfer tax matters

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

### In employment and excise tax matters

.10 In employment and excise tax matters, the Associate offices issue letter rulings on proposed
transactions and on completed transactions either before or after the return is filed for those
transactions.

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

In procedural and administrative matters

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

In Indian tribal government matters

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

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

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

In exempt organizations matters

.14 In exempt organizations matters, the Associate Chief Counsel (Tax Exempt and Govern- ment Entities) generally issues letter rulings on proposed transactions or on completed transac- tions if the letter ruling request is submitted before the return is filed for the year in which the transaction is completed. The Associate Chief Counsel (Tax Exempt and Government Entities) will not ordinarily issue a letter ruling on a completed transaction if the letter ruling request is submitted after the return is filed for the year in which the transaction is completed. "Not ordinarily" means that unique and compelling reasons must be demonstrated to justify the issuance of a letter ruling submitted after the return is filed for the year in which the transaction is completed. The taxpayer must contact the Field office having audit jurisdiction over their return and obtain the Field's consent to the issuance of such a letter ruling.

See Rev. Proc. 2018-5, this Bulletin, for the procedures for issuing determination letters on issues under the jurisdiction of the Director Exempt Organizations Rulings and Agreements, including determination letters on the tax-exempt status of organizations under § 501 and § 521, the foundation status of organizations described in § 501(c)(3), and the foundation status of nonexempt charitable trusts described in § 4947(a)(1).

In qualified retirement plan and IRA matters

.15 In qualified retirement plan and IRA matters, (other than those listed in Rev. Proc. 2018-4), the Associate Chief Counsel (Tax Exempt and Government Entities) will generally issue letter rulings on proposed transactions and on completed transactions either before or after the return is filed, including those involving:

(1) §§ 72 (other than the computation of the exclusion ratio), 219, 381(c)(11), 402, 403(b) (except with respect to whether the form of a plan satisfies the requirements of § 403(b) as provided in Rev. Proc. 2018-4, this Bulletin), 404, 408, 408A, 412, 414(e) and (h), 511 through 514, 4971(b) and (g), 4972, 4973, 4974, 4978, 4979, and 4980;

(2) Waiver of the minimum funding standard (see Rev. Proc. 2004-15, 2004-1 C.B. 490, section 3.04 of which is modified by Rev. Proc. 2018-4);

(3) Waiver under § 4980F(c)(4) of all or part of the excise tax imposed for failure to satisfy the notice requirements described in § 4980F(e);

(4) Whether a plan amendment is reasonable and provides for only de minimis increases in plan liabilities in accordance with §§ 401(a)(33) and 412(c)(7)(B)(i) of the Code (see Rev. Proc. 79-62, 1979-2 C.B. 576);

(5) With respect to employee stock ownership plans and tax credit employee stock ownership plans, §§ 409, 1042, 4975(d)(3) and 4975(e)(7). Qualification issues arising under these sections are generally within the jurisdiction of Employee Plans Determinations. However, see Rev. Proc. 2018-3, section 4.02(12);

(6) Abatement of first tier excise taxes under § 4962;

(7) Relief under § 301.9100-1 that is not related to Roth IRA recharacterizations; and

(8) Grants of extensions of time other than pursuant to § 301.9100-1.

A request to revoke an election

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

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

.17 In general, the Service will not issue a letter ruling or determination letter on an issue that it cannot readily resolve before the promulgation of a regulation or other published guidance. See section 6.09 of this revenue procedure.

However, an Associate office may issue letter rulings under the following conditions:

(1) Answer is clear or is reasonably certain. If the letter ruling request presents an issue for
which the answer seems clear by applying the statute, regulations, and applicable case law to the
facts or for which the answer seems reasonably certain but not entirely free from doubt.

(2) Answer is not reasonably certain. If the letter ruling request presents an issue for which
the answer does not seem reasonably certain, the Associate office may issue the letter ruling,
using its best efforts to arrive at a determination, if it is in the best interest of tax administration.

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

Ordinarily not if the request involves an issue under examination or consideration or in litigation

.01 The Service ordinarily does not issue a letter ruling or a determination letter if, at the time of the request, the identical issue is involved in the taxpayer's return for an earlier period and that issue- (1) is being examined by a Field office;

(2) is being considered by Appeals;

(3) is pending in litigation in a case involving the taxpayer or a related taxpayer;

(4) has been examined by a Field office or considered by Appeals and the statutory period of limitations on assessment or on filing a claim for refund or credit of tax has not expired; or

(5) has been examined by a Field office or considered by Appeals and a closing agreement covering the issue or liability has not been entered into by a Field office or by Appeals.

If a return dealing with an issue for a particular year is filed while a request for a letter ruling on that issue is pending, an Associate office will issue the letter ruling unless it is notified by the taxpayer or otherwise learns that an examination of that issue or the identical issue on an earlier year's return has been started by a Field office. See section 7.05 of this revenue procedure. In income and gift tax matters, as well as in qualified retirement plan, IRA, and exempt organizations matters, even if an examination has begun, an Associate office ordinarily will issue the letter ruling if the Field office agrees by memorandum to the issuance of the letter ruling.

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

.02 The Service ordinarily does not issue letter rulings or determination letters in certain areas because of the factual nature of the matter involved or for other reasons. Rev. Proc. 2018-3, this Bulletin, and Rev. Proc. 2018-7, this Bulletin, provide a list of these areas. This list is not all-inclusive because the Service may decline to issue a letter ruling or a determination letter when appropriate in the interest of sound tax administration, including due to resource constraints, or on other grounds whenever warranted by the facts or circumstances of a particular case.

Instead of issuing a letter ruling or determination letter, the Service may, when it is considered

appropriate and in the interest of sound tax administration, issue an information letter calling
attention to well-established principles of tax law.

If the Service determines that it is not in the interest of sound tax administration to issue a letter
ruling or determination letter due to resource constraints, it will adopt a consistent approach with
respect to taxpayers that request a ruling on the same issue. The Service will also consider adding
the issue to the no rule list at the first opportunity. See sections 2.01 and 3.02 of Rev. Proc.
2018-3, this Bulletin.

Ordinarily not on part of
an integrated transaction

.03 (1) General rule. An Associate office ordinarily will not issue a letter ruling on only part
of an integrated transaction. If a part of a transaction falls under a no-rule area, a letter ruling on
other parts of the transaction may be issued. Before preparing the letter ruling request, a taxpayer
should call a branch having jurisdiction for the matters on which the taxpayer is seeking a letter
ruling to discuss whether the Associate office will issue a letter ruling on part of the transaction.

(2) Significant issue ruling. (a) No rule areas. The Service will not rule on the qualification
of any transaction under § 332, § 351, or § 1036, or (except as provided in paragraph (b) of this
section 6.03(2)) on whether a transaction constitutes a reorganization within the meaning of § 368
(other than under §§ 368(a)(1)(D) and 355), regardless of whether such transaction is part of an
integrated transaction (see section 3.01(53) of Rev. Proc. 2018-3, this bulletin). Instead, the
Associate Chief Counsel (Corporate) will only issue a letter ruling on significant issues (within
the meaning of section 3.01(53) of Rev. Proc. 2018-3, this bulletin) presented in a transaction
described in § 332, § 351, § 368 (other than under §§ 368(a)(1)(D) and 355), or § 1036. For
example, the Service may rule on significant issues under § 1.368-1(d) (continuity of business
enterprise) and § 1.368-1(e) (continuity of interest). Letter rulings requested under this section
6.03(2)(a) are subject to the no-rule policies of Rev. Proc. 2018-3, this bulletin.

(b) Section 355 distributions and related transactions. Pursuant to section 4 of Rev. Proc.
2017-52, 2017-41 I.R.B. 283, in lieu of requesting a Transactional Ruling regarding a Covered
Transaction, a taxpayer may request a Significant Issue Ruling. Letter rulings requested under this
section 6.03(2)(b) are subject to the policies of Rev. Proc. 2018-3, this bulletin.

(3) Submission requirements. Before preparing a letter ruling request under section 6.03(2)
of this revenue procedure involving significant issues presented in a transaction described in
§ 332, § 351, § 355, § 368, or § 1036, the taxpayer is encouraged to call the Office of Associate
Chief Counsel (Corporate) at the telephone number provided in section 10.07(1)(a) of this
revenue procedure to discuss whether the Service will entertain a letter ruling request under
section 6.03(2). The Service reserves the right to rule on any other aspect of the transaction
(including ruling adversely) to the extent the Service believes it is in the best interests of tax
administration. Cf. section 2.01 of Rev. Proc. 2018-3, this bulletin.

The taxpayer may request rulings on one or more significant issues in a single letter ruling
request. Letter ruling requests under section 6.03(2) must include the following for each
significant issue:

(a) A narrative description of the transaction that puts the issue in context;

(b) A statement identifying the issue;

(c) An analysis of the relevant law, which should set forth the authorities most closely related
to the issue and explain why these authorities do not resolve the issue, and an explanation

Sec. 6.03
January 2, 2018

concerning why the issue is significant within the meaning of section 3.01(53) of Rev. Proc.
2018-3, this bulletin; and

(d) The precise ruling(s) requested.

The taxpayer should consult other published authorities (see, for example, Appendix G of this
revenue procedure, which identifies certain checklist and guideline revenue procedures including
Rev. Proc. 2017-52, to identify information or representations but only to the extent that they
relate to the issue.)

If the Service issues a letter ruling on a significant issue under section 6.03(2), then the letter
ruling will state that no opinion is expressed as to any issue or step not specifically addressed by
the letter. In addition, letter rulings issued under section 6.03(2) will contain the following (or
similar) language:

This letter is issued pursuant to section 6.03(2) of Rev. Proc. 2018-1, 2018-1 I.R.B. 1,
regarding one or more significant issues under § 332, § 351, § 355, § 368, or § 1036. The
ruling[s] contained in this letter only address[es] one or more significant issues involved in
the transaction. This Office expresses no opinion as to the overall tax consequences of the
transactions described in this letter or as to any issue not specifically addressed by the
ruling[s] below.

Ordinarily not on which of
two entities is a common
law employer

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

Ordinarily not to business
associations or groups

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

The Service may issue letter rulings or determination letters to groups or associations on their
own tax status or liability if the request meets the requirements of this revenue procedure.

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

.06 The Service ordinarily does not issue letter rulings or determination letters regarding the tax
consequences of a transaction for taxpayers who are not directly involved in the request if the
requested letter ruling or determination letter would not address the tax status, liability, or
reporting obligations of the requester. For example, a taxpayer may not request a letter ruling
relating to the tax consequences of a transaction to a customer or client, if the tax status, liability,
or reporting obligations of the taxpayer would not be addressed in the ruling, because the
customer or client is not directly involved in the letter ruling request. The tax liability of each
shareholder is, however, directly involved in a letter ruling on the reorganization of a corporation.
Accordingly, a corporate taxpayer could request a letter ruling that solely addressed the tax
consequences to its shareholders of a proposed reorganization.

Rev. Proc. 96-16, 1996-1 C.B. 630, sets forth rules for letter ruling requests involving
tax-exempt state and local government obligations.

Ordinarily not to foreign
governments

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

### Ordinarily not on Federal tax consequences of proposed legislation

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

Ordinarily not before
issuance of a regulation or
other published guidance

.09 Generally, the Service will not issue a letter ruling or a determination letter if the request
presents an issue that cannot be readily resolved before a regulation or any other published
guidance is issued. When the Service has closed a regulation project or any other published
guidance project that might have answered the issue or decided not to open a regulation project
or any other published guidance project, the Associate offices may consider all letter ruling
requests unless the issue is covered by section 6 of this revenue procedure, Rev. Proc. 2018-3,
this Bulletin, or Rev. Proc. 2018-7, this Bulletin.

Not on frivolous issues

.10 The Service will not issue a letter ruling or a determination letter on frivolous issues. A
"frivolous issue" is one without basis in fact or law or one that asserts a position that courts have
held frivolous or groundless. Examples of frivolous or groundless issues include, but are not
limited to:

(1) frivolous "constitutional" claims, such as claims that the requirement to file tax returns and
pay taxes constitutes an unreasonable search barred by the Fourth Amendment, violates Fifth and
Fourteenth Amendment protections of due process, violates Thirteenth Amendment protections
against involuntary servitude, or is unenforceable because the Sixteenth Amendment does not
authorize nonapportioned direct taxes or was never ratified;

(2) claims that income taxes are voluntary, that the term "income" is not defined in the Internal
Revenue Code, or that preparation and filing of Federal income tax returns violates the Paperwork
Reduction Act;

(3) claims that tax may be imposed only on coins minted under a gold or silver standard or that
receipt of Federal Reserve Notes does not cause an accretion to wealth;

(4) claims that a person's income is not taxable because he or she falls within a class entitled
to "reparation claims" or an extra-statutory class of individuals exempt from tax, e.g., "free-born"
individuals;

(5) claims that a taxpayer can refuse to pay taxes on the basis of opposition to certain
Governmental expenditures;

(6) claims that taxes apply only to Federal employees; only to residents of Puerto Rico, Guam,

the U.S. Virgin Islands, the District of Columbia, or "Federal enclaves;" or that §§ 861 through
865 or any other provision of the Code imposes taxes on U.S. citizens and residents only on
income derived from foreign based activities;

(7) claims that wages or personal service income are "not income," are "nontaxable receipts,“
or are a "nontaxable exchange for labor;"

(8) claims that income tax withholding by an employer on wages is optional; or

(9) other claims that the courts have characterized as frivolous or groundless.

Additional examples of frivolous or groundless issues may be found in IRS publications and
other guidance (including, but not limited to, Notice 2010-33, Frivolous Positions, and I.R.M.
Exhibit 25.25.10-1, Frivolous Arguments).

No "comfort" letter rulings

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

### Not on alternative plans or hypothetical situations

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

### Not on property conversion after return filed

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

Circumstances under
which determination letters
are not issued by a
Director

.14 A Director will not issue a determination letter if-

(1) the taxpayer has directed a similar inquiry to an Associate office;

(2) the same issue, involving the same taxpayer or a related taxpayer, is pending in a case in
litigation or before Appeals;

(3) the request involves an industry-wide problem;

(4) the specific employment tax question at issue in the request has been, or is being, considered
by the Central Office of the Social Security Administration or the Railroad Retirement Board for
the same taxpayer or a related taxpayer; or

(5) the request is for a determination of constructive sales price under § 4216(b) or § 4218(c),

which deal with special provisions applicable to the manufacturers excise tax. The Associate
Chief Counsel (Passthroughs and Special Industries) will, in certain circumstances, issue letter
rulings in this area. See section 5.13 of this revenue procedure.

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

This section provides the general instructions for requesting letter rulings and determination
letters. See section 9 of this revenue procedure for the specific and additional procedures for
requesting a change in method of accounting.

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

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

### Documents and information required in all requests

.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;

(d) a complete statement of the business reasons for the transaction;

(e) a detailed description of the transaction; and

(f) all other facts relating to the transaction or to the taxpayer's requested tax treatment thereof.

Documents and foreign
laws

(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents
pertinent to the transaction, and foreign laws.

(a) Documents. True copies of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, and other documents pertinent to the transactions must be

Sec. 7.01
January 2, 2018

submitted with the request. But see section 3.02 and section 4 of Rev. Proc. 2017-52, 2017-41
I.R.B. 283, for requirements relating to ruling requests under § 355.

If the request concerns a corporate distribution, reorganization, or similar transaction, the
corporate balance sheet and profit and loss statement should also be submitted. If the request
relates to a prospective transaction, the most recent balance sheet and profit and loss statement
should be submitted. But see section 3.02 and section 4 of Rev. Proc. 2017-52 for requirements
relating to ruling requests under § 355.

If any document, including any balance sheet and profit and loss statement, is in a language
other than English, the taxpayer must also submit a certified English translation of the document,
along with a true copy of the document. For guidelines on the acceptability of such documents,
see paragraph (c) of this section 7.01(2).

Each document other than the request should be labeled and attached to the request in
alphabetical sequence. Original documents such as contracts, wills, etc., should not be submitted
because they become part of the Service's file and will not be returned.

(b) Foreign laws. The taxpayer must submit with the request a copy of the relevant parts of all
foreign laws, including statutes, regulations, administrative pronouncements, and any other relevant
legal authority. The documents submitted must be in the official language of the country involved and
must be copied from an official publication of the foreign government or another widely available and
generally accepted publication. If English is not the official language of the country involved, the
taxpayer must also submit a copy of an English language version of the relevant parts of all foreign
laws. This translation must be: (i) from an official publication of the foreign government or another
widely available, generally accepted publication; or (ii) a certified English translation submitted in
accordance with paragraph (c) of this section 7.01(2).

The taxpayer must identify the title and date of publication, including updates, of any widely
available and generally accepted publication that the taxpayer (or the taxpayer's qualified
translator) uses as a source for the relevant parts of the foreign law.

(c) Standards for acceptability of submissions of documents in a language other than
English and certified English translations of laws in a language other than English. The
taxpayer must submit with the request an accurate and complete certified English translation of
the relevant parts of all contracts, wills, deeds, agreements, instruments, trust documents,
proposed disclaimers, and other documents pertinent to the transaction that are in a language other
than English. If the taxpayer chooses to submit certified English translations of foreign laws, those
translations must be based on an official publication of the foreign government or another widely
available and generally accepted publication. In either case, the translation must be that of a
qualified translator and must be attested to by the translator. The attestation must contain: (i) a
statement that the translation submitted is a true and accurate translation of the foreign language
document or law; (ii) a statement as to the attestant's qualifications as a translator and as to that
attestant's qualifications and knowledge regarding tax matters or foreign law if the law is not a
tax law; and (iii) the attestant's name and address.

Analysis of material facts

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

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

(4) Statement regarding whether same issue is in an earlier return and additional
information required for § 301.9100 requests. The request must state whether, to the best of the
knowledge of both the taxpayer and the taxpayer's representatives, the same issue is addressed in
any return of the taxpayer, a related taxpayer within the meaning of § 267, or of a member of an
affiliated group of which the taxpayer is also a member within the meaning of § 1504, or any
predecessor that-

(a) is currently under examination, before Appeals, or before a Federal court;

(b) was previously under examination, before Appeals, or before a Federal court;

(c) in qualified retirement plan matters, is being considered by the Pension Benefit Guaranty
Corporation or the Department of Labor; ore

(d) in health care matters, is being considered by the Department of Labor or the Department
of Health and Human Services.

The Service will not ordinarily issue a letter ruling or determination letter if, at the time of the
request, the identical issue is under examination or consideration or in litigation. See section 6.01
in this revenue procedure. A limited exception to the above rule is made for a § 301.9100 request.
See section 5.03 in this revenue procedure.

If a § 301.9100 request involves a tax year that is currently under examination, before Appeals,
or before a Federal court, the taxpayer must notify the Service, as outlined above. This notification
must include the name and telephone number of the examining agent or appeals officer.

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

(5) Statement regarding whether same or similar issue was previously ruled on or
whether a request involving it was submitted or is currently pending. The request must state
whether, to the best of the knowledge of both the taxpayer and the taxpayer's representatives-

(a) the Service previously ruled on the same or a similar issue for the taxpayer, a related
taxpayer within the meaning of § 267, or a member of an affiliated group of which the taxpayer
is also a member within the meaning of § 1504, or a predecessor;

(b) the taxpayer, a related taxpayer, a predecessor, or any of their representatives previously
submitted a request (including an application for change in method of accounting) involving the
same or a similar issue but no letter ruling or determination letter was issued;

(c) the taxpayer, a related taxpayer, or a predecessor previously submitted a request (including
an application for change in method of accounting) involving the same or a similar issue that is
currently pending with the Service;

(d) at the same time as this request, the taxpayer or a related taxpayer is presently submitting
another request (including an application for change in method of accounting) involving the same
or a similar issue; or

(e) the taxpayer or a related taxpayer had, or has scheduled, a pre-submission conference
involving the same or a similar issue.

If the statement is affirmative for (a), (b), (c), (d), or (e) of this section 7.01(5), the statement must
give the date the request was submitted, the date the request was withdrawn or ruled on, if
applicable, and other details of the Service's consideration of the issue.

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

(6) Statement regarding interpretation of a substantive provision of an income or estate
tax treaty. If the request involves the interpretation of a substantive provision of an income or
estate tax treaty, the request must state whether-

(a) the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue
for the taxpayer, a related taxpayer within the meaning of § 267, or a member of an affiliated
group of which the taxpayer is also a member within the meaning of § 1504, or any predecessor;

(b) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is being
examined or has been settled by the tax authority of the treaty jurisdiction or is otherwise the
subject of a closing agreement in that jurisdiction; and

(c) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is being
considered by the competent authority of the treaty jurisdiction.

#### Interpretation of a transaction involving a party in a foreign country

(7) Statement regarding involvement of a transactional party located in a foreign country.
If the request involves a transaction between a taxpayer and a related party and either the taxpayer
or the related party is located in a foreign country, the request must state whether the ruling
potentially relates to any one of these categories-

(a) Preferential Regime, defined as one that meets the following three requirements: (1) the
regime relates to business taxation of income from geographically mobile activities (such as,
financial and other service activities, including the provision of intangibles); (2) the regime offers
a form of tax preference, such as, a reduction in the rate of tax or tax base compared to general
principles of U.S. taxation; and (3) the regime imposes no or low effective tax rates on income
from geographically mobile, financial, and other service activities;

(b) Transfer Pricing, meaning the letter ruling covers transfer pricing or the application of
transfer pricing principles under section 482 and the regulations thereunder;

(c) Downward Adjustment, meaning the letter ruling provides for a downward adjustment to
the taxpayer's taxable profit that is not directly reflected in its financial accounts. Examples
include excess profits rulings or informal capital rulings that provide an adjustment that reduces
taxable profits;

(d) Treaty Permanent Establishment, meaning the letter ruling determines the existence or
absence of a permanent establishment under an income tax treaty or provides how much profit
will be attributed to a permanent establishment;

(e) Related Party Conduit, meaning the letter ruling covers the cross-border flow of funds or
income through a U.S. entity that is a conduit under common law principles or Treas. Reg.
§1.881-3, whether those funds or income flow to another country directly or indirectly.

Letter from Bureau of
Indian Affairs relating to
certain letter ruling
requests
Sec. 7.01
January 2, 2018

(8) Letter from Bureau of Indian Affairs relating to a letter ruling request for recognition
of Indian tribal government status or status as a political subdivision of an Indian tribal
government. To facilitate prompt action on a letter ruling request for recognition of Indian tribal
government status or status as a political subdivision of an Indian tribal government, the taxpayer

must submit with the letter ruling request a letter from the Department of the Interior, Bureau of
Indian Affairs (BIA), verifying that the tribe is recognized by BIA as an Indian tribe and that the
tribal government exercises governmental functions or that the political subdivision of the Indian
tribal government has been delegated substantial governmental functions. A letter ruling request
that does not contain this letter from BIA cannot be resolved until the Service obtains a letter from
BIA regarding the tribe's status.

The taxpayer should send a request to verify tribal status to the following address:

Branch of General Indian Legal Activity
Division of Indian Affairs
Office of the Solicitor
U.S. Department of the Interior
1849 C Street, NW
Washington, DC 20240

Statement of authorities
supporting taxpayer's
views

(9) Statement of supporting authorities. If the taxpayer advocates a particular conclusion, the
taxpayer must include an explanation of the grounds for that conclusion and the relevant
authorities to support it. Even if the taxpayer is not advocating a particular tax treatment of a
proposed transaction, the taxpayer must furnish views on the tax results of the proposed
transaction and a statement of relevant authorities to support those views.

In all events, the request must include a statement of whether the law in connection with the
request is uncertain and whether the issue is adequately addressed by relevant authorities.

Statement of authorities
contrary to taxpayer's
views

(10) Statement of contrary authorities. To avoid a delay in the ruling process, contrary
authorities should be brought to the attention of the Service at the earliest possible opportunity.
If there are significant contrary authorities, it is usually helpful to discuss them in a pre-
submission conference prior to submitting the ruling request. See section 10.07 of this revenue
procedure regarding pre-submission conferences. The taxpayer is strongly encouraged to inform
the Service about, and discuss the implications of, any authority believed to be contrary to the
position advanced, such as legislation, tax treaties, court decisions, regulations, notices, revenue
rulings, revenue procedures, or announcements. If the taxpayer determines that there are no
contrary authorities, a statement in the request to this effect should be included. If the taxpayer
does not furnish either contrary authorities or a statement that none exist, the Service in complex
cases or those presenting difficult or novel issues may request submission of contrary authorities
or a statement that none exist. Failure to comply with this request may result in the Service's
refusal to issue a letter ruling or determination letter.

The taxpayer's identification of and discussion of contrary authorities will generally enable
Service personnel to more quickly understand the issue and relevant authorities. Having this
information should make research more efficient and lead to earlier action by the Service. If the
taxpayer does not disclose and distinguish significant contrary authorities, the Service may need
to request additional information, which will delay action on the request.

Statement identifying
pending legislation

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

Deletion statement
required by § 6110

(12) Statement identifying information to be deleted from the public inspection copy of
letter ruling or determination letter. The text of letter rulings and determination letters is open

Sec. 7.01
January 2, 2018

to public inspection under § 6110. The Service makes deletions from the text before it is made
available for inspection. To help the Service make the deletions required by § 6110(c), a request
for a letter ruling or determination letter must be accompanied by a statement indicating the
deletions desired, except where a letter ruling or determination letter is open to public inspection
under § 6104. If the deletion statement is not submitted with the request, a Service representative
will tell the taxpayer that the request will be closed if the Service does not receive the deletion
statement within 21 calendar days. See section 8.05 of this revenue procedure.

Section 6110(l)(1) provides that § 6110 disclosure provisions do not apply to any matter to
which § 6104 applies. Therefore, letter rulings, determination letters, technical advice memo-
randa, and related background file documents dealing with the following matters (covered by
§ 6104) are not subject to § 6110 disclosure provisions-

(i) An approved application for exemption under § 501(a) as an organization described in
§ 501(c) or (d), or notice of status as a political organization under § 527, together with any papers
submitted in support of such application or notice;

(ii) An application for exemption under § 501(a) with respect to the qualification of a pension,
profit sharing or stock bonus plan, or an individual retirement account described in § 408 or
§ 408A, or any application for exemption under § 501(a) by an organization forming part of such
a plan or account;

(iii) Any document issued by the Internal Revenue Service in which the qualification or exempt
status of a plan or account is granted, denied, or revoked or the portion of any document in which
technical advice with respect thereto is given;

(iv) Any application filed and any document issued by the Internal Revenue Service with
respect to the qualification or status of master and prototype retirement plans; and

(v) The portion of any document issued by the Internal Revenue Service with respect to the
qualification or exempt status of a retirement plan or account of a proposed transaction by such
plan or account.

(a) Format of deletion statement. A taxpayer who wants only names, addresses, and
identifying numbers to be deleted should state this in the deletion statement. If the taxpayer wants
more information deleted, the deletion statement must be accompanied by a copy of the request
and supporting documents on which the taxpayer should bracket the material to be deleted. The
deletion statement must include the statutory basis under § 6110(c) for each proposed deletion.

If the taxpayer decides to ask for additional deletions before the letter ruling or determination
letter is issued, additional deletion statements may be submitted.

(b) Location of deletion statement. The deletion statement must be made in a separate
document from the request for a letter ruling or determination letter and must be placed on top
of the request.

(c) Signature. The deletion statement must be signed and dated by the taxpayer or the
taxpayer's authorized representative. A stamped signature or faxed signature is not permitted.

(d) Additional information. The taxpayer should follow the same procedures of this section

7.01(12) to propose deletions from any additional information submitted after the initial request.
An additional deletion statement is not required with each submission of additional information
if the taxpayer's initial deletion statement requests that only names, addresses, and identifying
numbers are to be deleted and the taxpayer wants only the same information deleted from the
additional information.

(e) Taxpayer may protest deletions not made. After receiving from the Service the notice
under § 6110(f)(1) of intention to disclose the letter ruling or determination letter (including a
copy of the version proposed to be open to public inspection and notation of third-party
communications under § 6110(d)), the taxpayer may protest the disclosure of certain information
in the letter ruling or determination letter. The taxpayer must send a written statement to the
Service office indicated on the notice of intention to disclose, within 20 calendar days of the date
the notice of intention to disclose is mailed to the taxpayer. The statement must identify those
deletions that the Service has not made and that the taxpayer believes should have been made. The
taxpayer must also submit a copy of the version of the letter ruling or determination letter and
bracket the proposed deletions that have not been made by the Service. Generally, the Service will
not consider deleting any material that the taxpayer did not propose to be deleted before the letter
ruling or determination letter was issued.

Within 20 calendar days after the Service receives the response to the notice under § 6110(f)(1),
the Service will mail to the taxpayer its final administrative conclusion regarding the deletions to
be made. The taxpayer does not have the right to a conference to resolve any disagreements
concerning material to be deleted from the text of the letter ruling or determination letter. These
matters may, however, be taken up at any conference that is otherwise scheduled regarding the
request.

(f) Taxpayer may request delay of public inspection. After receiving the notice of intention
to disclose under § 6110(f)(1), but no later than 60 calendar days after the date of the notice, the
taxpayer may send a written request for delay of public inspection under either § 6110(g)(3) or
(4). The request for delay must be sent to the Service office indicated on the notice of intention
to disclose. A request for delay under § 6110(g)(3) must contain the date on which it is expected
that the underlying transaction will be completed. The request for delay under § 6110(g)(4) must
contain a statement from which the Commissioner of Internal Revenue may determine whether
there are good reasons for the continued delay.

### Signature on request

(13) Signature by taxpayer or authorized representative. The request for a letter ruling or
determination letter must be signed and dated by the taxpayer or the taxpayer's authorized
representative. A stamped signature or faxed signature is not permitted. However, an electroni-
cally transmitted signature (e.g., faxed or digitally-signed PDF) is permitted for determinations
requested under section 12.04 regarding the Form SS-8 program.

### Authorized representatives

#### (14) Authorized representatives.

(a) To sign the request or to appear before the Service in connection with the request, the
taxpayer's authorized representative must be (for rules on who may practice before the Service,
see Treasury Department Circular No. 230, 31 C.F.R. part 10):

(1) An attorney who is a member in good standing of the bar of the highest court of any state,
possession, territory, commonwealth, or the District of Columbia and who is not currently under
suspension or disbarment from practice before the Service. He or she must file a written
declaration with the Service showing current qualification as an attorney and current authorization
to represent the taxpayer;

(2) A certified public accountant who is duly qualified to practice in any state, possession,
territory, commonwealth, or the District of Columbia and who is not currently under suspension
or disbarment from practice before the Service. He or she must file a written declaration with the
Service showing current qualification as a certified public accountant and current authorization to
represent the taxpayer;

(3) An enrolled agent is a person who is currently enrolled as an agent to practice before the
Service and who is not currently under suspension or disbarment from practice before the Service.
He or she must file a written declaration with the Service showing current enrollment and
authorization to represent the taxpayer. The enrollment number must be included in the decla-
ration;

(4) An enrolled actuary is an individual currently enrolled as an actuary by the Joint Board for
the Enrollment of Actuaries pursuant to 29 U.S.C. § 1242 and who is not currently under
suspension or disbarment from practice before the Service. He or she must file a written
declaration with the Service showing current qualification as an enrolled actuary and current
authorization to represent the taxpayer. Practice before the Service as an enrolled actuary is
limited to representation with respect to issues involving §§ 401, 403(a), 404, 405, 412, 413, 414,
419, 419A, 420, 4971, 4972, 4976, 4980, 6057, 6058, 6059, 6652(d), 6652(e), 6692, and 7805(b);
former § 405; and 29 U.S.C. § 1083;

(5) An enrolled retirement plan agent is an individual currently enrolled as a retirement plan
agent who is not currently under suspension or disbarment from practice before the Service. He
or she must file a written declaration as an enrolled retirement plan agent and current authori-
zation to represent the taxpayer. Practice before the Service as an enrolled retirement plan agent
is limited to representation with respect to issues involving the following programs: Employee
Plans Determination Letter program; Employee Plans Compliance Resolution System; and
Employee Plans Master and Prototype and Volume Submitter program. Enrolled retirement plan
agents also are generally permitted to represent taxpayers with respect to IRS forms under the
5300 and 5500 series, which are filed by retirement plans and plans sponsors, but not with respect
to actuarial forms and schedules; or

(6) Any other person, including a foreign representative, who has received a "Letter of
Authorization" from the Director of the Office of Professional Responsibility under section
10.7(d) of Treasury Department Circular No. 230. A person may make a written request for a
"Letter of Authorization" to: Office of Professional Responsibility, SE:OPR, Internal Revenue
Service, 1111 Constitution Ave., NW, Washington, DC 20224. Section 10.7(d) of Circular No.
230 authorizes the Commissioner to allow an individual who is not otherwise eligible to practice
before the Service to represent another person in a particular matter.

(b) A regular full-time employee representing his or her employer; a general partner repre-
senting his or her partnership; a bona fide officer representing his or her corporation, association,
or organized group; a trustee, receiver, guardian, personal representative, administrator, executor,
or regular full-time employee representing a trust, receivership, guardianship, or estate; or an
individual representing an immediate family member may sign the request or appear before the
Service in connection with the request if the individual provides current authorization to represent
the taxpayer. See section 7.01(15) of this revenue procedure.

A taxpayer may be required to file a Form 8821, Tax Information Authorization, for certain
employees not authorized to represent the taxpayer to receive taxpayer information from the
Service.

(c) Tax return preparers, including registered tax return preparers, that are not described in
subsections (a) and (b) of this section may not sign the request, appear before the Service, or
represent a taxpayer in connection with a request for a letter ruling or a determination letter. See
section 10.3(f)(3) of Treasury Department Circular No. 230.

(d) A foreign representative, other than a person referred to in subsections (a) and (b) of this
section, is not authorized to practice before the Service within the United States and must
withdraw from representing a taxpayer in a request for a letter ruling or a determination letter. In
this situation, the nonresident alien or foreign entity must submit the request for a letter ruling or
a determination letter on the individual's or the entity's own behalf or through a person referred
to in subsections (a) and (b) of this section.

Power of attorney and
declaration of
representative

(15) Power of attorney and declaration of representative. Form 2848, Power of Attorney
and Declaration of Representative, should be used to provide the representative's authority (Part
I of Form 2848, Power of Attorney) and the representative's qualification (Part II of Form 2848,
Declaration of Representative). The name of the person signing Part I of Form 2848 should also
be typed or printed on this form. A stamped signature is not permitted. An original, a copy, or fax
of the power of attorney is acceptable so long as its authenticity is not reasonably disputed. For
additional information regarding the power of attorney form, see section 7.02(2) of this revenue
procedure.

The taxpayer's authorized representative, whether or not enrolled, must comply with Treasury
Department Circular No. 230, which provides the rules for practice before the Service. In
situations where the Service believes that the taxpayer's representative is not in compliance with
Circular 230, the Service will bring the matter to the attention of the Office of Professional
Responsibility.

Penalties of perjury
statement

(16) Penalties of perjury statement.

(a) Format of penalties of perjury statement. A request for a letter ruling or determination
letter and any change in the request submitted at a later time must be accompanied by the
following declaration: "Under penalties of perjury, I declare that I have examined [Insert, as
appropriate: this request or this modification to the request], including accompanying
documents, and, to the best of my knowledge and belief, [Insert, as appropriate: the request
or the modification] contains all the relevant facts relating to the request, and such facts are
true, correct, and complete."

See section 8.05(4) of this revenue procedure for the penalties of perjury statement applicable
for submissions of additional information.

(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer, not the
taxpayer's representative. A stamped signature or faxed signature is not permitted. However, an
electronically transmitted signature (e.g., faxed or digitally-signed PDF) is permitted for deter-
minations requested under section 12.04 regarding the Form SS-8 program.

The person who signs for a corporate taxpayer must be an officer of the corporate taxpayer who
has personal knowledge of the facts and whose duties are not limited to obtaining a letter ruling
or determination letter from the Service. If the corporate taxpayer is a member of an affiliated
group filing consolidated returns, a penalties of perjury statement must also be signed and
submitted by an officer of the common parent of the group.

The person signing for a trust, a state law partnership, or a limited liability company must be,
respectively, a trustee, general partner, or member-manager who has personal knowledge of the
facts.

Number of copies of
request to be submitted

(17) Number of copies of request to be submitted. Generally, a taxpayer needs to submit the
original and one copy of the request for a letter ruling or determination letter. If more than one
issue is presented in the letter ruling request, the taxpayer is encouraged to submit additional
copies of the request.

Further, the original and two copies of the request for a letter ruling or determination letter are
required if-

(a) the taxpayer is requesting separate letter rulings or determination letters on multiple issues
as explained later under section 7.02(1) of this revenue procedure;

(b) the taxpayer is requesting deletions other than names, addresses, and identifying numbers,
as explained in section 7.01(12)(a) of this revenue procedure (one copy is the request for the letter
ruling or determination letter and the second copy is the deleted version of such request); or

(c) the taxpayer is requesting a closing agreement (as defined in section 2.02 of this revenue
procedure) on the issue presented.

Sample format for a letter
ruling request

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

Checklist

(19) Checklist for letter ruling requests. An Associate office will be able to respond more
quickly to a taxpayer's letter ruling request if the request is carefully prepared and complete. The
checklist in Appendix C of this revenue procedure is designed to assist taxpayers in preparing a
request by reminding them of the essential information and documents to be furnished with the
request. The checklist in Appendix C must be completed to the extent required by the instructions
in the checklist, signed and dated by the taxpayer or the taxpayer's representative, and placed on
top of the letter ruling request. If the checklist in Appendix C is not received, a branch
representative will ask the taxpayer or the taxpayer's representative to submit the checklist; this
may delay action on the letter ruling request.

For letter ruling requests on certain matters, specific checklists supplement the checklist in
Appendix C. These checklists are in Appendix D, Appendix E, or are listed in section 1 of
Appendix G of this revenue procedure and must also be completed and placed on top of the letter
ruling request along with the checklist in Appendix C.

Taxpayers can obtain copies of the checklist in Appendix C by calling (202) 317-5221 (not a
toll-free call) or by accessing this revenue procedure in Internal Revenue Bulletin 2018-1 on the IRS
website at www.irs.gov. Taxpayers can access this revenue procedure on the website by following the
"News" link, the "IRS Guidance" link, and the "Internal Revenue Bulletins (after June 2003)" link to
obtain Internal Revenue Bulletin 2018-1. A copy of this checklist may be used.

.02
Additional procedural
information required with
request

Sec. 7.01
January 2, 2018

### Multiple issues

(1) To request separate letter rulings for multiple issues in a single situation. If more than
one issue is presented in a request for a letter ruling, the Associate office generally will issue a
single letter ruling covering all the issues. If the taxpayer requests separate letter rulings on any
of the issues (because, for example, one letter ruling is needed sooner than another), the Associate
office usually will comply with the request unless doing so is not feasible or not in the best interest
of the Service. A taxpayer who wants separate letter rulings on multiple issues should make this
clear in the request and submit the original and two copies of the request. See section 15.06(3)
regarding whether a single user fee will be charged.

In issuing each letter ruling, the Associate office will state that it has issued separate letter
rulings or that requests for other letter rulings are pending.

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

(2) Power of attorney used to indicate recipient or recipients of a copy or copies of a letter
ruling or a determination letter. Once the Service signs the letter ruling or determination letter,
it will send the original to the taxpayer. The Service will not send the original letter ruling or
determination letter to the taxpayer's representative.

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

### "Two-part" letter ruling requests

(3) To request a particular conclusion on a proposed transaction. A taxpayer who requests
a particular conclusion on a proposed transaction may make the request for a letter ruling in two
parts. This type of request is referred to as a "two-part" letter ruling request. The first part must
include the complete statement of facts and related documents described in section 7.01 of this
revenue procedure. The second part must include a summary statement of the facts the taxpayer
believes to be controlling in reaching the conclusion requested.

If the Associate office accepts the taxpayer's statement of controlling facts, it will base its letter
ruling on these facts. Ordinarily, this statement will be incorporated into the letter ruling. The
Associate office reserves the right to rule on the basis of a more complete statement of the facts
and to seek more information in developing the facts and restating them.

A taxpayer who chooses this two-part procedure has all the rights and responsibilities provided
in this revenue procedure.

Taxpayers may not use the two-part procedure if it is inconsistent with other procedures, such
as those dealing with requests for permission to change accounting methods or periods, appli-
cations for recognition of exempt status under § 501(a) or § 521, or requests for rulings on
employment tax status.

After the Associate office has resolved the issues presented by a letter ruling request, the

Sec. 7.02
January 2, 2018

Associate office representative may request that the taxpayer submit a proposed draft of the letter
ruling to expedite the issuance of the ruling. See section 8.07 of this revenue procedure.

Expedited handling

(4) To request expedited handling. The Service ordinarily processes requests for letter rulings
and determination letters in order of the date received. Expedited handling means that a request
is processed ahead of requests received before it. Expedited handling is granted only in rare and
unusual cases, both out of fairness to other taxpayers and because the Service seeks to process all
requests as expeditiously as possible and to give appropriate deference to normal business
exigencies in all cases not involving expedited handling.

A taxpayer with a compelling need to have a request processed ahead of requests received
before it may request expedited handling. This request must explain in detail the need for
expedited handling. The request for expedited handling must be made in writing, preferably in a
separate letter included with the request for the letter ruling or determination letter or provided
soon after its filing. If the request for expedited handling is contained in the letter requesting the
letter ruling or determination letter, the letter should state at the top of the first page "Expedited
Handling Is Requested. See page _ of this letter."

A request for expedited handling will not be forwarded to a branch for action until the user fee
has been paid

Whether a request for expedited handling will be granted is within the Service's discretion. The
Service may grant the request when a factor outside a taxpayer's control creates a real business
need to obtain a letter ruling or determination letter before a certain date to avoid serious business
consequences. Examples include situations in which a court or governmental agency has imposed
a specific deadline for the completion of a transaction, or where a transaction must be completed
expeditiously to avoid an imminent business emergency (such as the hostile takeover of a
corporate taxpayer), provided that the taxpayer can demonstrate that the deadline or business
emergency, and the need for expedited handling, resulted from circumstances that could not
reasonably have been anticipated or controlled by the taxpayer. To qualify for expedited handling
in such situations, the taxpayer must also demonstrate that the taxpayer submitted the request as
promptly as possible after becoming aware of the deadline or emergency. The extent to which the
letter ruling or determination letter request complies with all of the applicable requirements of this
revenue procedure, and fully and clearly presents the issues, is a factor in determining whether
expedited treatment will be granted. When the Service agrees to process a request out of order,
it cannot give assurance that any letter ruling or determination letter will be processed by the date
requested.

The scheduling of a closing date for a transaction or a meeting of the board of directors or
shareholders of a corporation, without regard for the time it may take to obtain a letter ruling or
determination letter, will not be considered a sufficient reason to process a request ahead of its
regular order. Also, the possible effect of fluctuation in the market price of stocks on a transaction
will not be considered a sufficient reason to process a request out of order.

Because most requests for letter rulings and determination letters cannot be processed out of
order, the Service urges all taxpayers to submit their requests well in advance of the contemplated
transaction. In addition, to facilitate prompt action on letter ruling requests, taxpayers are
encouraged to ensure that their initial submissions comply with all of the requirements of this
revenue procedure (including the requirements of other applicable guidelines set forth in Appen-
dix G of this revenue procedure), to prepare "two-part" requests described in section 7.02(3) of
this revenue procedure when possible, and to promptly provide any additional information
requested by the Service.

Fax to taxpayer or
taxpayer's authorized
representative of any
document related to letter
ruling request

(5) To request the receipt of any document related to letter ruling request by fax. If the
taxpayer so requests, the Associate office may fax to the taxpayer or the taxpayer's authorized
representative a copy of any document related to the letter ruling request (for example, the letter
ruling itself or a request for additional information).

A request to fax to the taxpayer or the taxpayer's authorized representative a copy of any
document related to the letter ruling request must be made in writing, preferably as part of the
original request for the letter ruling. The request may be submitted at a later date, but such a
request will only be respected prospectively with respect to documents generated after it is
received, and must be received prior to the signing of the letter ruling. The request must contain
the fax number of the taxpayer or the taxpayer's authorized representative to whom the document
is to be faxed.

A document other than the letter ruling will be faxed by a branch representative. The copy of
the letter ruling may be faxed by either a branch representative or the Disclosure and Litigation
Support Branch of the Legal Processing Division of the Office of Associate Chief Counsel
(Procedure and Administration) (CC:PA:LPD:DLS). For purposes of § 301.6110-2(h), however,
a letter ruling is not issued until the ruling is mailed.

### Requesting a conference

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

.03

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

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

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

Code sections to consider

(2) Code sections to consider. In addition to any other applicable Code sections, taxpayers
should consider whether there are tax consequences under the following Code sections-

(a) For taxpayers that are VEBAs. VEBAs requesting a letter ruling on a proposed
transaction involving the use or transfer of VEBA assets should consider the tax consequences
under §§ 501(c)(9), 505, 511, and 512, and should also include with the request a copy of the
VEBA's most recent letter addressing its status under § 501(c)(9).

(b) For taxpayers that are contributing employers. Contributing employers requesting a
letter ruling on a proposed transaction involving the disposition of fund assets should consider the
tax consequences under §§ 61, 111, 419, 419A, and 4976.

(i) Special considerations for § 4976 rulings.

(A) Tax Benefit Rule. A contributing employer that deducted contributions to a welfare benefit

Sec. 7.03
January 2, 2018

fund and requests a letter ruling as to the tax consequences under § 4976 must either (1) address
why no amount should be included in income under the tax benefit rule, or (2) represent that it
is including in income amounts that are subject to the tax benefit rule.

(B) Standing. In the case of a trade association (an organization described in § 501(c)(6)) that
sponsors a welfare benefit fund, the association does not have standing to request a ruling under
§ 4976 on behalf of employers who contributed to the fund. However, a trade association
generally has standing to request a ruling under § 4976 on its own behalf as an employer if the
trade association contributed to the fund and the fund provided benefits to the trade association's
own employees.

(C) Additional use of welfare benefit fund assets or transfer of assets between two or more
welfare benefit funds. If the proposed transaction involves either an additional use of welfare
benefit fund assets (for example, providing benefits to a new group of employees or providing a
new type of benefit) or a transfer of assets between or among two or more welfare benefit funds,
the application should state whether the employer has an obligation, in the current or any future
year, to provide the benefits. For situations in which a use or transfer of assets would involve
assets or benefits subject to one or more collective bargaining agreements, the application should
include a copy of each applicable collective bargaining agreement. For a transfer of assets, the
application should also address whether the welfare benefit funds could be merged.

Address to which to send
request for letter ruling or
determination letter

Request for letter ruling

.04

(1) Request for letter ruling. Original letter ruling requests must be sent to the appropriate
Associate office. The packages should be marked RULING REQUEST SUBMISSION.

(a) If a private delivery service is not used, requests for letter rulings should be sent to the
following address:

Internal Revenue Service
Attn: CC:PA:LPD:DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

If a private delivery service is used, the address is:

Internal Revenue Service
Attn: CC:PA:LPD:DRU, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224

(b) Requests for letter rulings may also be hand delivered between the hours of 8:00 a.m. and
4:00 p.m. to the courier's desk at the loading dock of 1111 Constitution Avenue, NW, Wash-
ington, DC. A receipt will be given at the courier's desk. The package should be addressed to:

Courier's Desk
Internal Revenue Service
Attn: CC:PA:LPD:DRU, Room 5336

## 1111 Constitution Ave., NW Washington, DC 20224

### Request for determination letter

(2) Request for determination letter.

(a) Taxpayers under the jurisdiction of LB&I should send a request for a determination letter
to the following address:

Internal Revenue Service
Large Business and International Division
1111 Constitution Ave., NW
LB&I:ACDDI:PMO, IR 1135
Washington, DC 20224
or via email to *PFTS@irs.gov

(b) SB/SE and W&I taxpayers should send requests for determination letters to the appropriate
SB/SE office listed in Appendix F of this revenue procedure.

(c) For a determination letter under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division, see Rev. Proc. 2018-4 and Rev. Proc. 2018-5, this Bulletin.

### Pending letter ruling requests

.05

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

(1) Circumstances under which the taxpayer with a pending letter ruling request must
notify the Associate office. The taxpayer must notify the Associate office if, after the letter ruling
request is filed but before a letter ruling is issued, the taxpayer knows that-

(a) a Field office has started an examination of the issue or the identical issue on an earlier
year's return;

(b) in the case of a § 301.9100 request, a Field office has started an examination of the return
for the taxable year in which an election should have been made or any taxable year that would
have been affected by the election had it been timely made. See § 301.9100-3(e)(4)(i) and section
5.03(3) of this revenue procedure;

(d) another letter ruling request (including an application for change in method of accounting),
involving the same or similar issue as that pending with the Service, has been submitted by the
taxpayer or a related party within the meaning of § 267 or a member of an affiliated group of
which the taxpayer is also a member within the meaning of § 1504;

(e) in qualified retirement plan matters, the issue is being considered by the Pension Benefit
Guaranty Corporation or the Department of Labor; or

(f) in health care matters, the issue is being considered by the Department of Labor or the
Department of Health and Human Services.

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

(2) Taxpayer must notify the Associate office if a return is filed and must attach the
request to the return. If the taxpayer files a return before a letter ruling is received from the
Associate office concerning an issue in the return, the taxpayer must notify the Associate office
that the return has been filed. The taxpayer must also attach a copy of the letter ruling request
(Form 3115, if for a non-automatic change in method of accounting) to the return to alert the Field
office and avoid premature field action on the issue. Taxpayers filing their returns electronically
may satisfy this requirement by attaching to their return a statement providing the date of the letter
ruling request and the control number of the letter ruling.

If, under the limited circumstances permitted in section 5 of this revenue procedure, the
taxpayer requests a letter ruling after the return is filed, but before the return is examined, the
taxpayer must notify the Associate office that the return has been filed. The taxpayer must also
notify the Field office having jurisdiction over the return and attach a copy of the letter ruling
request to the notification to alert the Field office and avoid premature field action on the issue.

This section 7.05 also applies to pending requests for a closing agreement on a transaction for
which a letter ruling is not requested or issued.

For purposes of this section 7.05, the term "return" includes an original return, amended return,
or claim for refund.

When to attach letter
ruling or determination
letter to return

.06 A taxpayer who, before filing a return, receives a letter ruling or determination letter about
any transaction that has been consummated and that is relevant to the return being filed must
attach to the return a copy of the letter ruling or determination letter. Taxpayers filing their returns
electronically may satisfy this requirement by attaching a statement to their return that provides
the date and control number of the letter ruling or determination letter.

For purposes of this section 7.06, the term "return" includes an original return, amended return,
or claim for refund.

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

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

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

.08

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

Sec. 7.06
January 2, 2018

# Notification of appropriate Service official

# (2) Notification of appropriate Service official.

(a) Letter ruling requests. If a taxpayer withdraws a letter ruling request or if the Associate
office declines to issue a letter ruling, the Associate office generally will notify, by memorandum,
the appropriate Service official in the operating division that has examination jurisdiction of the
taxpayer's tax return. For taxpayers under the jurisdiction of the Division Counsel (Large
Business & International), the Associate office will also send a copy of the memorandum to the
Assistant Deputy Commissioner, Compliance Integration. In doing so, the Associate office may
give the Service official its views on the issues in the request for consideration in any later
examination of the return. This section 7.08(2)(a) generally does not apply if the taxpayer
withdraws the letter ruling request and submits a written statement that the transaction has been,
or is being, abandoned and if the Associate office has not already formed an adverse opinion. See
section 7.08(1) of this revenue procedure.

(b) Notification of Service official may constitute Chief Counsel Advice. If the memoran-
dum to the Service official referred to in paragraph (a) of this section 7.08(2) provides more than
the fact that the request was withdrawn and that the Associate office was tentatively adverse, or
more than the fact that the Associate office declines to issue a letter ruling, the memorandum may
constitute Chief Counsel Advice, as defined in § 6110(i)(1), and may be subject to disclosure
under § 6110.

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

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

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

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

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

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

(1) whether the branch representative will recommend that the Associate office rule as the
taxpayer requested, rule adversely on the matter, or not rule;

(2) whether the taxpayer should submit additional information to enable the Associate office to
rule on the matter;

(3) whether the letter ruling complies with all of the provisions of this revenue procedure, and
if not, which requirements have not been met; or

Sec. 8.01

(4) whether, because of the nature of the transaction or the issue presented, a tentative
conclusion on the issue cannot be reached.

If the letter ruling request involves matters within the jurisdiction of more than one branch or
Associate office, a representative of the branch that received the original request will tell the
taxpayer within the initial 21 calendar days-

(1) that the matters within the jurisdiction of another branch or Associate office have been
referred to that branch or Associate office for consideration, and the date the referral was made,
and

(2) that a representative of that branch or Associate office will contact the taxpayer within 21
calendar days after receiving the referral to discuss informally the procedural and, to the extent
possible, the substantive issues in the request.

This section 8.02 applies to all matters except for cases involving a request for change in
method of accounting or accounting period and cases within the jurisdiction of the Associate
Chief Counsel (Financial Institutions and Products) concerning insurance issues requiring actu-
arial computations.

Determines if transaction
can be modified to obtain
favorable letter ruling

.03 If less than a fully favorable letter ruling is indicated, the branch representative will tell the
taxpayer whether minor changes in the transaction or adherence to certain published positions
would bring about a favorable ruling. The branch representative may also tell the taxpayer the
facts that must be furnished in a document to comply with Service requirements. The branch
representative will not suggest precise changes that would materially alter the form of the
proposed transaction or materially alter a taxpayer's proposed accounting period.

If, at the end of this discussion, the branch representative determines that a meeting in the
Associate office would be more helpful to develop or exchange information, a meeting will
be offered and an early meeting date arranged. When offered, this meeting is in addition to
the taxpayer's conference of right that is described in section 10.02 of this revenue procedure.

Not bound by informal
opinion expressed

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

May request additional
information

.05

Must be submitted within
21 calendar days

(1) Additional information must be submitted within 21 calendar days. If the request lacks
essential information, which may include additional information needed to satisfy the procedural
requirements of this revenue procedure as well as substantive changes to transactions or docu-
ments needed from the taxpayer, the branch representative will request such information during
the initial or subsequent contacts with the taxpayer or its authorized representative. The repre-
sentative will inform the taxpayer or its authorized representative that the request will be closed
if the Associate office does not receive the requested information within 21 calendar days from
the date of the request unless an extension of time is granted. To facilitate prompt action on letter
ruling requests, taxpayers may request that the Associate office request additional information by
fax. See section 7.02(5) of this revenue procedure.

Material facts furnished to the Associate office by telephone or fax, or orally at a conference,

must be promptly confirmed by letter to the Associate office. This confirmation, and any
additional information requested by the Associate office that is not part of the information
requested during the initial contact, must be furnished within 21 calendar days from the date the
Associate office makes the request.

## Extension of reply period if justified and approved

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

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

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

Penalties of perjury
statement for additional
information

(4) Penalties of perjury statement. Additional information submitted to the Service must be
accompanied by the following declaration: "Under penalties of perjury, I declare that I have
examined this information, including accompanying documents, and, to the best of my
knowledge and belief, the information contains all the relevant facts relating to the request
for the information, and such facts are true, correct, and complete." This declaration must be
signed in accordance with the requirements in section 7.01(16)(b) of this revenue procedure.

## Faxing request and additional information

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

Address to which to send
additional information

(6) Address to which to send additional information

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

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Associate office
representative who requestedthe information]
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

For cases involving a request for change in method of accounting or period, see section 9.08
of this revenue procedure for the address to which to send additional information.

Sec. 8.05

(b) If a private delivery service is used, the additional information for all cases should be sent
to:

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Associate office
representative who requested
the information]
1111 Constitution Ave., NW
Washington, DC 20224

## Identifying information included in additional information

Number of copies of
additional information to
be submitted

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

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

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

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

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

.07 To accelerate the issuance of letter rulings, in appropriate cases near the completion of the
ruling process, the Associate office representative may request that the taxpayer or the taxpayer's
representative submit a proposed draft of the letter ruling. Such draft would be based on the
discussions of the issues between the representative and the taxpayer or the taxpayer's represen-
tative. The taxpayer is not required to prepare a draft letter ruling to receive a letter ruling.

The format of the submission should be discussed with the Associate office representative who
requests the draft letter ruling. The representative usually can provide a sample format of a letter
ruling and will discuss with the taxpayer or the taxpayer's representative the facts, analysis, and
letter ruling language to be included.

Taxpayers are encouraged to submit this draft in a printed copy that is in a computer scannable
format. The printed copy will become part of the permanent files of the Associate office. The
printed copy should be sent to the same address as any additional information and should contain
in the transmittal the information that should be included with any additional information (for
example, a penalties of perjury statement is required). See section 8.05(4) of this revenue
procedure.

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

.08

Substantially identical letter rulings

(1) Substantially identical letter rulings. For letter ruling requests qualifying for the user fee provided in paragraph (A)(5)(a) of Appendix A of this revenue procedure for substantially identical letter rulings, a separate letter ruling will generally be issued for each requester or entity as the Associate office deems necessary.

Related § 301.9100 letter rulings

(2) Related § 301.9100 letter rulings.

(a) For a § 301.9100 letter ruling request for an extension of time to file a Form 3115 qualifying under section 15.07(4) for the user fee provided in paragraph (A)(5)(d) of Appendix A of this revenue procedure for an identical change in method of accounting, the Associate office generally will issue a single letter on behalf of all applicants on Form 3115 that are the subject of the request.

(b) For a § 301.9100-3 letter ruling request for an extension of time to file an entity classification election for multiple entities qualifying under section 15.07(2) for the user fee provided in paragraph (A)(5)(a) of Appendix A of this revenue procedure, the Associate office generally will issue a single letter on behalf of all entities that are the subject of the request. The taxpayer may request that separate letters be issued to each entity that is the subject of the request. See generally section 5.03 of this revenue procedure.

Sends a copy of the letter ruling to appropriate Service official

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

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

This section provides the specific and additional procedures applicable to a request for a change in method of accounting under Rev. Proc. 2015-13, 2015-5 I.R.B. 419 (or any successor), as clarified and modified by Rev. Proc. 2015-33, 2015-24 I.R.B. 1067, and as modified by Section 17.02 of Rev. Proc. 2016-1, 2016-1 I.R.B. 1, or other automatic change request procedures. A request for a change in method of accounting under Rev. Proc. 2015-13, (or any successor), or other automatic change request procedures is a type of request for a letter ruling. See section 2.01 of this revenue procedure.

Automatic and non- automatic change in method of accounting requests

.01

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

(1) Automatic change in method of accounting. Certain changes in methods of accounting must be made under automatic change request procedures. A change in method of accounting provided for in an automatic change request procedure must be made using that procedure if the taxpayer requesting the change is within the scope of the procedure, the change is an automatic change for the requested year of the change, and the taxpayer is eligible to make the change. The Commissioner's consent to an otherwise qualifying automatic change in method of accounting is granted only if the taxpayer timely complies with the applicable automatic change request procedures. But see section 9.19 of this revenue procedure concerning review by an Associate

office and a Field office. In general, a taxpayer requests an automatic change by filing a current
Form 3115, Application for Change in Method of Accounting.

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

Non-automatic change in
method of accounting

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

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

.02 Ordinarily, a taxpayer may request only one change in method of accounting on a Form
3115, Application for Change in Accounting Method. If the taxpayer wants to request a change
in method of accounting for more than one unrelated item or submethod of accounting, the
taxpayer must submit a separate Form 3115 for each unrelated item or submethod, except in
certain situations in which the Service specifically permits certain unrelated changes to be
included on a single Form 3115. For an example of such a situation, see section 15.03 of Rev.
Proc. 2016-29, 2016-21 I.R.B. 880 (or its successor).

A separate Form 3115 (and, therefore, a separate user fee pursuant to section 15 and Appendix
A of this revenue procedure) must be submitted for each taxpayer and each separate trade or
business of a taxpayer, including a qualified subchapter S subsidiary (QSub) or a single-member
limited liability company (single-member LLC), requesting a change in method of accounting,
except as specifically permitted or required in guidance published by the Service. See, for
example, section 15.07(4) of this revenue procedure.

# Information required with a Form 3115

.03

Facts and other
information

(1) Facts and other information requested on Form 3115 and in applicable revenue
procedures. In general, a taxpayer requesting a change in method of accounting must file a
current Form 3115, unless the procedures applicable to the specific type of change in method of
accounting do not require a Form 3115 to be submitted.

To be eligible for approval of the requested change in method of accounting, the taxpayer must
provide all information requested on the Form 3115 and in its instructions and in Rev. Proc.
2015-13 (or any successor), and, if applicable, the automatic change request procedure. In
addition, the taxpayer must provide all information requested in the applicable sections of this
revenue procedure, including a detailed and complete description of the item being changed and
of the taxpayer's trade(s) or business(es), the taxpayer's present and proposed method for the item
being changed, information regarding whether the taxpayer has claimed any federal tax credit
relating to the cost being changed, information regarding whether the taxpayer is under exami-

nation, or before Appeals or a Federal court, and a summary of the computation of the net § 481(a)
adjustment, along with an explanation of the methodology used to determine the adjustment,
sufficient to demonstrate that the net § 481(a) adjustment is computed correctly.

For a non-automatic Form 3115 or an automatic change request specified in the instructions for
line 16 of the Form 3115, the taxpayer must also include a full explanation of the legal basis and
relevant authorities supporting the proposed method, and a detailed and complete description of
the facts and explanation of how the law applies to the taxpayer's situation.

For a non-automatic Form 3115, the taxpayer must also include a statement of the applicant's
reasons for the proposed change, copies of all documents related to the proposed change, and a
discussion of whether the law related to the request is uncertain or inadequately addresses the
issue.

The applicant must provide the requested information to be eligible for approval of the
requested change in method of accounting. The taxpayer may be required to provide information
specific to the requested change in method of accounting, such as an attached statement. The
taxpayer must provide all information relevant to the requested change in method of accounting,
even if not specifically requested, including an explanation of all material facts relevant to the
requested change in method of accounting.

See also sections 7.01(1) and 7.01(9) of this revenue procedure.

Statement of authorities
contrary to taxpayer's
views

(2) Statement of contrary authorities. For a non-automatic Form 3115, the taxpayer is
encouraged to inform the Associate office about, and discuss the implications of, any authority
believed to be contrary to the proposed change in method of accounting, including legislation,
court decisions, regulations, notices, revenue rulings, revenue procedures, or announcements.

If the taxpayer does not furnish either contrary authorities or a statement that none exist, the
Associate office may request submission of contrary authorities or a statement that none exist.
Failure to comply with this request may result in the Associate office's refusal to issue a change
in method of accounting letter ruling.

Documents

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

Analysis of material facts

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

Same issue in an earlier
return

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

Issue previously submitted or currently pending

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

If the statement is affirmative, for each request, give the name(s) of the taxpayer, identification number(s), the type of request (letter ruling, request for change in method of accounting, or request for technical advice), and the specific issues in the request.

Statement identifying pending legislation

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

Authorized representatives

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

Power of attorney and declaration of representative

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

Tax Information Authorization

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

authorize the taxpayer's appointee to advocate the taxpayer's position or to otherwise represent the taxpayer before the Service.

Penalties of perjury statement Additional procedural information required in certain circumstances

(11) Penalties of perjury statement

(a) Format of penalties of perjury statement. A Form 3115, and any change to a Form 3115 submitted at a later time, must be accompanied by the following declaration: "Under penalties of perjury, I declare that I have examined this application, including accompanying schedules and statements, and to the best of my knowledge and belief, the application contains all the relevant facts relating to the application, and it is true, correct, and complete." See section 9.08(3) of this revenue procedure for the penalties of perjury statement required for submissions of additional information. (b) Signature by taxpayer. A Form 3115 must be signed by, or on behalf of, the taxpayer requesting the change by an individual who has personal knowledge of the facts of, and authority to bind the taxpayer in, such matters. For example, an officer must sign on behalf of a corporation, a general partner on behalf of a state law partnership, a member-manager on behalf of a limited liability company, a trustee on behalf of a trust, or an individual taxpayer on behalf of a sole proprietorship. If the taxpayer is a member of a consolidated group, a Form 3115 should be submitted on behalf of the taxpayer by the common parent and must be signed by a duly authorized officer of the common parent. Refer to the signature requirements set forth in the instructions for the current Form 3115 regarding those who are to sign. See also section 6.02(8) of Rev. Proc. 2015-13 (or any successor). A stamped signature or faxed signature is not permitted. (c) Signature by preparer. A declaration of preparer (other than the taxpayer) is based on all information of which the preparer has any knowledge.

.04

Recipients of original and copy of correspondence

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

Expedited handling

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

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

(3) To receive the change in method of accounting letter ruling or any other correspon- dence related to a Form 3115 by fax. If the taxpayer wants a copy of the change in method of accounting letter ruling or any other correspondence related to a Form 3115, such as a request for additional information, faxed to the taxpayer or the taxpayer's authorized representative, the taxpayer must submit a written request to fax the letter ruling or related correspondence, preferably as part of the Form 3115. The request may be submitted at a later date, but it must be

Bulletin No. 2018-1

Sec. 9.04 47 January 2, 2018

received prior to the mailing of correspondence other than the letter ruling and prior to the signing
of the change in method of accounting letter ruling.

The request to have correspondence relating to the Form 3115 faxed to the taxpayer or
taxpayer's authorized representative must contain the fax number of the taxpayer or the taxpay-
er's authorized representative to whom the correspondence is to be faxed.

A document other than the change in method of accounting letter ruling will be faxed by
a branch representative. The change in method of accounting letter ruling may be faxed by
either a branch representative or the Disclosure and Litigation Support Branch of the Legal
Processing Division of the Office of Associate Chief Counsel (Procedure and Administration)
(CC:PA:LPD:DLS).

For purposes of § 301.6110-2(h), a change in method of accounting letter ruling is not issued
until the change in method of accounting letter ruling is mailed.

## Requesting a conference

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

Addresses to which to send
Forms 3115

.05 Addresses to which to send Forms 3115. Submit the original Form 3115, in the case of
a non-automatic Form 3115, or the copy of the Form 3115, in the case of an automatic change
request, as follows:

(1) Non-automatic Form 3115.

(a) Associate office mailing address if private delivery service is not used. If a private delivery
service is not used, a taxpayer, including an exempt organization, must send the original
completed Form 3115 and the required user fee to:

Internal Revenue Service

Attn: CC:PA:LPD:DRU
P.O. Box 7604
Benjamin Franklin Station
Washington, DC 20044

(b) Mailing address if private delivery service is used. If a private delivery service is used,
a taxpayer, including an exempt organization, must send the original completed Form 3115 and
the required user fee to:

Internal Revenue Service

Attn: CC:PA:LPD:DRU
Room 5336
1111 Constitution Ave., NW
Washington, DC 20224

(c) Address if hand-delivered to the IRS Courier's desk. For taxpayers, including an exempt
organization, the original completed Form 3115 and the required user fee may be hand delivered
between the hours of 8:00 a.m. and 4:00 p.m. to the courier's desk at the loading dock of 1111

Constitution Ave., NW, Washington, DC. A receipt will be given at the courier's desk. The
package should be addressed to:

Courier's Desk
Internal Revenue Service
Attn: CC:PA:LPD:DRU, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224

(2) Automatic change request. If the automatic change request procedure requires a taxpayer
to file a duplicate copy of the completed Form 3115 for an automatic change request, send the
duplicate copy of the automatic change request Form 3115 to:

Internal Revenue Service
201 West Rivercenter Blvd.
PIN Team Mail Stop 97
Covington, KY 41011-1424

A Form 3115 must not be
submitted by fax
Docket, Records, and User
Fee Branch receives,
initially controls, and
refers the Form 3115 to
the appropriate Associate
office

.06 A completed Form 3115 must not be submitted by fax.

.07 A non-automatic Form 3115 is received and controlled by the Docket, Records, and User
Fee Branch, Legal Processing Division of the Associate Chief Counsel (Procedure and Admin-
istration) (CC:PA:LPD:DRU) if the required user fee is submitted with the Form 3115. Once
controlled, the Form 3115 is forwarded to the appropriate Associate office for assignment and
processing.

Additional information

.08

Reply period

(1) Reply period.

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

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

Extension of reply period

(2) Request for extension of reply period.

(a) Non-automatic Form 3115. For a non-automatic Form 3115, an additional period, not to
exceed 15 calendar days, to furnish information may be granted to a taxpayer. Any request for an
extension of time must be made in writing and submitted before the end of the original 21-day

Sec. 9.06

period. If unusual circumstances close to the end of the 21-day period make a written request
impractical, the taxpayer should notify the Associate office within the 21-day period that there is
a problem and that the written request for extension will be provided shortly. An extension of the
21-day period will be granted only if approved by a branch reviewer. An extension of the 21-day
period ordinarily will not be granted to furnish information requested on Form 3115. The taxpayer
will be told promptly, and later in writing, of the approval or denial of the requested extension.
If the extension request is denied, there is no right of appeal.

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

### Penalties of perjury statement for additional information

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

Identifying information
included in additional
information

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

## Faxing information request and additional information

(5) Faxing information request and additional information. To facilitate prompt action on
a change in method of accounting ruling request, taxpayers may request that the Associate office
request additional information by fax. See section 9.04(3) of this revenue procedure.

Taxpayers may also submit additional information by fax as soon as the information is
available. The Associate office representative who requests additional information can provide a
telephone number to which the information can be faxed. A copy of the requested information and
an original signed penalties of perjury statement also must be mailed or delivered to the Associate
office.

Address to which to send
additional information to
an Associate office

(6) Address to which to send additional information to an Associate office.

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

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Associate office

representative who requested
the information]
P.O. Box 14095
Ben Franklin Station
Washington, DC 20044

For any other request for change in method of accounting, if a private delivery service is not
used, the additional information should be sent to:

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Associate office
representative who requested the information]
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

(b) Address if private delivery service is used. For a request for a change in method of
accounting, if a private delivery service is used, the additional information should be sent to:

Failure to timely submit
additional information to
an Associate office

(7) If taxpayer does not timely submit additional information.

(a) Non-automatic Form 3115. In the case of a non-automatic Form 3115, if the required
information is not furnished to the Associate office within the reply period, the Form 3115 will
not be processed and the case will be closed. The taxpayer or authorized representative will be
so notified in writing.

(b) Automatic change request. In the case of an automatic change request, if the required
information is not furnished to the Associate office within the reply period, the request does not
qualify for the automatic change request procedure. In such a case, the Associate office will notify
the taxpayer that consent to make the change in method of accounting is not granted.

(c) Submitting the additional information at a later date. If the taxpayer wants to submit the
additional information at a later date, the taxpayer must submit it with a new completed Form
3115 (and user fee, if applicable) for a year of change for which such new Form 3115 is timely
filed under the applicable change in method of accounting procedure.

Circumstances in which
the taxpayer must notify
the Associate office

.09 For a non-automatic Form 3115, the taxpayer must promptly notify the Associate office if,
after the Form 3115 is filed but before a change in method of accounting letter ruling is issued,
the taxpayer knows that-

(1) a Field office has started an examination of the present or proposed accounting;

(2) a Field office has started an examination of the proposed year of change;

(3) legislation that may affect the change in method of accounting has been introduced, see
section 9.03(7) of this revenue procedure; or

(4) another letter ruling request (including another Form 3115) has been submitted by the
taxpayer or a related party within the meaning of § 267 or a member of an affiliated group of
which the taxpayer is a member within the meaning of § 1504.

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

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

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

.11 Generally, after the conference is held (or offered, in the event no conference is held) and
before issuing any change in method of accounting letter ruling that is adverse to the requested
change in method of accounting, the taxpayer will be offered the opportunity to withdraw the
Form 3115. See section 9.12 of this revenue procedure. If, within 10 calendar days of the
notification by the branch representative, the taxpayer or the taxpayer's representative does not
notify the branch representative of a decision to withdraw the Form 3115, the adverse change in
method of accounting letter ruling will be issued unless an extension is granted. See section 15.10
for information regarding refunds of user fees.

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

.12

In general

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

### Notification of appropriate Service official

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

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

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

Service is not bound by
informal opinion

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

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

### Consent Agreement

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

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

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

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

.17 Ordinarily, for a non-automatic Form 3115, the Commissioner's permission to change a
taxpayer's method of accounting is set forth in a letter ruling (original and a Consent Agreement
copy). If the taxpayer agrees to the terms and conditions contained in the change in method of
accounting letter ruling, the taxpayer must sign and date the Consent Agreement copy of the letter
ruling in the appropriate space. The Consent Agreement must be signed by an individual with
authority to bind the taxpayer in such matters. The Consent Agreement copy must not be signed
by the taxpayer's representative. The signed copy of the letter ruling will constitute an agreement
(Consent Agreement) within the meaning of Treas. Reg. § 1.481-4(b). The signed Consent
Agreement copy of the letter ruling must be returned to the Associate office within 45 calendar
days of the date of the letter ruling. In addition, a copy of the signed Consent Agreement generally
must be attached to the taxpayer's income tax return for the year of change. See section
11.03(2)(a) of Rev. Proc. 2015-13 (or any successor). A taxpayer filing its return electronically
should attach the Consent Agreement as a PDF file named "Form3115Consent." If the taxpayer
has filed its income tax return for the year of change before the letter ruling has been received and
the Consent Agreement has been signed and returned, the copy of the signed Consent Agreement
should be attached to the amended return for the year of change that the taxpayer files to
implement the change in method of accounting.

A taxpayer must secure the consent of the Commissioner before changing a method of
accounting for Federal income tax purposes. See Treas. Reg. § 1.446-1(e)(2)(i). For a change in
method of accounting requested on a non-automatic Form 3115, a taxpayer has secured the
consent of the Commissioner when the taxpayer timely signs and returns the Consent Agreement
copy of the letter ruling from the Associate office granting permission to make the change in
method of accounting and otherwise complies with Rev. Proc. 2015-13 (or any successor).

A taxpayer that timely files a non-automatic Form 3115 and takes the requested change in
method of accounting into account in its federal income tax return for the year of change (and any
subsequent taxable year) prior to receiving a letter ruling granting consent for that change has
made a change in method of accounting without obtaining the consent of the Commissioner as
required by § 446(e) (an "unauthorized change"). As provided in section 12.02 of Rev. Proc.
2015-13 (or any successor), the Director may determine when a change is not made in
compliance with all applicable provisions of Rev. Proc. 2015-13 (or any successor) and may deny
the unauthorized change. However, the Commissioner's consent, issued subsequent to the
requested year of change, applies back to the year of change (and any subsequent taxable year)
as of the date of the letter ruling granting consent for that change if the taxpayer timely signs and
returns the Consent Agreement copy and implements the change in accordance with all applicable

provisions of Rev. Proc. 2015-13 (or any successor) and section 11 of this revenue procedure. If
the Commissioner does not grant consent under Rev. Proc. 2015-13 (or any successor) for the
change in method of accounting taken into account by the taxpayer, the taxpayer is subject to any
interest, penalties, or other adjustments resulting from improper implementation of the change.
See § 446(f). A taxpayer who timely files a non-automatic Form 3115 and takes the requested
change into account in the taxpayer's Federal income tax return for the year of change (and any
subsequent taxable year), prior to receiving the letter ruling granting permission for the requested
change, may nevertheless rely on the letter ruling received from the Associate office after it is
received, as provided in section 9.19 of this revenue procedure. If, however, the requested change
is modified or is withdrawn, denied, or similarly closed without the Associate office having
granted consent, taxpayers are not relieved of any interest, penalties, or other adjustments
resulting from improper implementation of the change.

A copy of the change in
method of accounting letter
ruling is sent to
appropriate Service official

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

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

.19 A taxpayer may rely on a change in method of accounting letter ruling received from the
Associate office, subject to certain conditions and limitations. See sections 7, 8, 10, 11, and 12 of
Rev. Proc. 2015-13 (or any successor).

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

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

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

## Associate office discretion to permit requested change in method of accounting

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

## List of automatic change in method of accounting request procedures

.22 For procedures regarding requests for an automatic change in method of accounting, refer
to the following published automatic change request procedures. The Commissioner's consent to
an otherwise qualifying automatic change in method of accounting is granted only if the taxpayer
complies timely with the applicable automatic change request procedure.

The automatic change request procedures for obtaining a change in method of accounting
include:

(1) Rev. Proc. 2015-13, 2015-5 I.R.B. 419 (or any successor). Rev. Proc. 2015-13 applies to

the changes in method of accounting described in Rev. Proc. 2016-29, 2016-21 I.R.B. 880 (or
any successor).

(2) The following automatic change request procedures, which require a completed Form 3115,
provide both the procedures under which a change may be made automatically and the procedures
under which such change must be made:

Treas. Reg. § 1.166-2(d)(3) (bank conformity for bad debts);

Treas. Reg. § 1.448-1 (to an overall accrual method for the taxpayer's first taxable year it is
subject to § 448) (this change may also be subject to the procedures of Rev. Proc. 2015-13,
2015-5 I.R.B. 419 (or any successor));

Treas. Reg. § 1.458-1 and -2 (exclusion for certain returned magazines, paperbacks, or
records);

Rev. Proc. 97-43, 1997-2 C.B. 494 (§ 475 - electing out of certain exemptions from securities
dealer status); and

Rev. Proc. 91-51, 1991-2 C.B. 779 (§ 1286 - certain taxpayers under examination that sell
mortgages and retain rights to service the mortgages).

(3) The following automatic change request procedures, which do not require a completed
Form 3115, provide the type of change in method of accounting that may be made automatically
and also provide the procedures under which such change must be made:

Notice 96-30, 1996-1 C.B. 378 (§ 446 - change to comply with Statement of Financial
Accounting Standards No. 116);

Rev. Proc. 92-29, 1992-1 C.B. 748 (§ 461 - change in real estate developer's method for
including costs of common improvements in the basis of property sold);

Rev. Proc. 98-58, 1998-2 C.B. 712 (certain taxpayers seeking to change to the installment
method of accounting under § 453 for alternative minimum tax purposes for certain deferred
payment sales contracts relating to property used or produced in the trade or business of farming);

Treas. Reg. § 1.472-2 (taxpayers changing to the last-in, first-out (LIFO) inventory method);

Section 585(c) and Treas. Reg. §§ 1.585-6 and 1.585-7 (large bank changing from the reserve
method of § 585); and

Rev. Proc. 92-67, 1992-2 C.B. 429 (election under § 1278(b) to include market discount in
income currently or election under § 1276(b) to use constant interest rate to determine accrued
market discount).

(4) See Appendix G for the list of revenue procedures for automatic changes in accounting
period.

### Other sections of this revenue procedure that are applicable to Form 3115

.23 In addition to this section 9, the following sections of this revenue procedure apply to
automatic change requests and non-automatic change requests:

1 (purpose of Rev. Proc. 2018-1);

2.01 (definition of "letter ruling");

2.02 (definition of "closing agreement");

2.05 (oral guidance);

3.01 (issues under the jurisdiction of the Associate Chief Counsel (Corporate));

3.02 (issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and
Products));

3.03 (issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Account-
ing));

3.04 (issues under the jurisdiction of the Associate Chief Counsel (International));

3.05 (issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special
Industries));

3.07 (issues under the jurisdiction of the Associate Chief Counsel (Tax Exempt and Govern-
ment Entities));

5.03(2) (period of limitation when filing a request for extensions of time for making an election
or for other relief under § 301.9100);

6.02 (letter rulings ordinarily not issued in certain areas because of the factual nature of the
problem);

6.05 (letter rulings ordinarily not issued to business associations or groups);

6.06 (letter rulings ordinarily not issued where the request does not address the tax status,
liability, or reporting obligations of the requester);

6.08 (letter rulings ordinarily not issued on Federal tax consequences of proposed legislation);

6.10 (letter rulings not issued on frivolous issues);

6.12 (letter rulings not issued on alternative plans or hypothetical situation);

7.01(1) (statement of facts and other information);

7.01(10) (statement of supporting authorities);

7.01(14) (authorized representatives);

7.01(15) (power of attorney and declaration of representative);

7.02(2) (power of attorney used to indicate recipient of a copy or copies of a letter ruling or a
determination letter);

7.02(4) (expedited handling);

7.05(2) (notify Associate office if a return, amended return, or claim for refund is filed while
request is pending and attach request to the return);

8.01 (receipt and control of the request, and referral to the appropriate Associate office);

8.04 (not bound by informal opinion expressed);

10 (scheduling conferences);

15 (user fees);

16 (significant changes to Rev. Proc. 2018-1);

17 (effect of Rev. Proc. 2018-1 on other documents);

18 (effective date of this revenue procedure);
Appendix A (schedule of user fees); and

Appendix G (revenue procedures and notices regarding letter ruling requests relating to specific
Code sections and subject matters).

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

Schedules a conference if
requested by taxpayer

.01 A taxpayer may request a conference regarding a letter ruling request. Normally, a
conference is scheduled only when the Associate office considers it to be helpful in deciding the
case or when an adverse decision is indicated. If conferences are being arranged for more than one
request for a letter ruling involving the same taxpayer, they will be scheduled so as to cause the
least inconvenience to the taxpayer. As stated in sections 7.02(6) and 9.04(4) of this revenue
procedure, a taxpayer who wants to have a conference on the issue or issues involved should
indicate this in writing when, or soon after, filing the request.

If a conference has been requested, the taxpayer or the taxpayer's representative will be notified

Sec. 10.01
January 2, 2018

by telephone, if possible, of the time and place of the conference, which must then be held within
21 calendar days after this contact. Instructions for requesting an extension of the 21-day period
and notifying the taxpayer or the taxpayer's representative of the Associate office's approval or
denial of the request for extension are the same as those explained in section 8.05(2) (section
9.08(2)(a) for a change in method of accounting request) of this revenue procedure regarding
providing additional information.

Permits taxpayer one
conference of right

.02 A taxpayer is entitled, as a matter of right, to only one conference in the Associate office,
except as explained under section 10.05 of this revenue procedure. This conference is normally
held at the branch level and is attended by a person who has the authority to sign the letter ruling
in his or her own name or for the branch chief.

When more than one branch has taken an adverse position on an issue in a letter ruling request
or when the position ultimately adopted by one branch will affect that adopted by another, a
representative from each branch with the authority to sign in his or her own name or for the branch
chief will attend the conference. If more than one subject is to be discussed at the conference, the
discussion will constitute a conference on each subject.

To have a thorough and informed discussion of the issues, the conference usually will be held
after the branch has had an opportunity to study the case. At the request of the taxpayer, the
conference of right may be held earlier.

No taxpayer has a right to appeal the action of a branch to an Associate Chief Counsel or to
any other official of the Service. But see section 10.05 of this revenue procedure for situations in
which the Associate office may offer additional conferences.

In employment tax matters, if the service recipient (the firm) requests the letter ruling, the firm
is entitled to a conference. If the worker requests the letter ruling, both the worker and the firm
are entitled to a conference. See section 5.10 of this revenue procedure.

### Disallows verbatim recording of conferences

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

Makes tentative
recommendations on
substantive issues

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

#### May offer additional conferences

.05 The Associate office will offer the taxpayer an additional conference if, after the conference
of right, an adverse holding is proposed, but on a new issue, or on the same issue but on different
grounds from those discussed at the first conference. There is no right to another conference when
a proposed holding is reversed at a higher level with a result less favorable to the taxpayer, if the
grounds or arguments on which the reversal is based were discussed at the conference of right.

The limit on the number of conferences to which a taxpayer is entitled does not prevent the
Associate office from offering additional conferences, including conferences with an official
higher than the branch level, if the Associate office decides they are needed. These conferences

are not offered as a matter of course simply because the branch has reached an adverse decision.
In general, conferences with higher level officials are offered only if the Associate office
determines that the case presents significant issues of tax policy or tax administration and that the
consideration of these issues would be enhanced by additional conferences with the taxpayer.

Requires written
confirmation of
information presented at
conference

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

May schedule a pre-
submission conference

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

(1) Taxpayer may request a pre-submission conference in writing or by telephone. A
taxpayer or the taxpayer's representative may request a pre-submission conference in writing or
by telephone. If the taxpayer's representative is requesting the pre-submission conference, a
power of attorney is required. A taxpayer should use Form 2848, Power of Attorney and
Declaration of Representative, to provide the representative's authority. If multiple taxpayers
and/or their authorized representatives will attend or participate in the pre-submission conference,
cross powers of attorney (or, as appropriate, tax information authorizations) are required. If the
taxpayer's representative is requesting the pre-submission conference by telephone, the Associate
office's representative (see list of phone numbers below) will provide the fax number to send the
power of attorney (or, as appropriate, tax information authorizations) prior to scheduling the
pre-submission conference.

The request must identify the taxpayer and briefly explain the primary issue so it can be
assigned to the appropriate branch. If submitted in writing, the request should also identify the
Associate office expected to have jurisdiction over the request for a letter ruling. A written request
for a pre-submission conference should be sent to the appropriate address listed in section 7.04
of this revenue procedure.

To request a pre-submission conference by telephone, call:

Sec. 10.06
January 2, 2018

(a) (202) 317-7700 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Corporate);

(b) (202) 317-3900 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Financial Institutions and Products);

(c) (202) 317-7002 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Income Tax and Accounting);

(d) (202) 317-3800 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (International);

(e) (202) 317-3100 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Passthroughs and Special Industries);

(f) (202) 317-3400 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Procedure and Administration); or

(g) (202) 317-6000 (not a toll-free call) for matters under the jurisdiction of the Office of
Associate Chief Counsel (Tax Exempt and Government Entities).

(2) Pre-submission conferences held in person or by telephone. Depending on the circum-
stances, pre-submission conferences may be held in person at the Associate office or may be
conducted by telephone.

(3) Certain information required to be submitted to the Associate office prior to the
pre-submission conference. Generally, the taxpayer will be asked to provide a statement of
whether the issue is an issue on which a letter ruling is ordinarily issued and a draft of the letter
ruling request or other detailed written statement explaining the proposed transaction, issue, and
legal analysis, before scheduling the pre-submission conference. The Associate office will allow
taxpayers to submit a statement after the conference is scheduled at its discretion. If the taxpayer's
authorized representative will attend or participate in the pre-submission conference, a power of
attorney is required.

(4) Discussion of substantive issues is not binding on the Service. Any discussion of
substantive issues at a pre-submission conference is advisory only, is not binding on the Service
in general or on the Office of Chief Counsel in particular, and cannot be relied upon as a basis
for obtaining retroactive relief under the provisions of § 7805(b).

May schedule a conference
to be held by telephone

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

SECTION 11. WHAT
EFFECT WILL A
LETTER RULING
HAVE?

May be relied on subject to
limitations

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

Will not apply to another
taxpayer

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

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

.03 When determining a taxpayer's liability, the Field office must ascertain whether-

(1) the conclusions stated in the letter ruling are properly reflected in the return;

(2) the representations upon which the letter ruling was based reflect an accurate statement of
the controlling facts;

(3) the transaction was carried out substantially as proposed; and

(4) there has been any change in the law that applies to the period during which the transaction
or continuing series of transactions were consummated.

If, when determining the liability, the Field office finds that a letter ruling should be revoked
or modified, the findings and recommendations of the Field office will be forwarded through the
appropriate Director to the Associate office for consideration before further action is taken by the
Field office. Such a referral to the Associate office will be treated as a request for technical advice
and the provisions of Rev. Proc. 2018-2, this Bulletin, relating to requests for technical advice
will be followed. See section 13.02 of Rev. Proc. 2018-2, this Bulletin. Otherwise, the Field
office should apply the letter ruling in determining the taxpayer's liability. If a Field office having
jurisdiction over a return or other matter proposes to reach a conclusion contrary to a letter ruling
previously issued to the taxpayer, it should coordinate the matter with the Associate office.

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

.04 Unless it was part of a closing agreement as described in section 2.02 of this revenue
procedure, a letter ruling found to be in error or not in accord with the current views of the Service
may be revoked or modified. If a letter ruling is revoked or modified, the revocation or
modification applies to all years open under the period of limitation unless the Service uses its
discretionary authority under § 7805(b) to limit the retroactive effect of the revocation or
modification.

A letter ruling may be revoked or modified by-

(1) a letter giving notice of revocation or modification to the taxpayer to whom the letter ruling
was issued;

(2) the enactment of legislation or ratification of a tax treaty;

(3) a decision of the United States Supreme Court;

(4) the issuance of temporary or final regulations; or

(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement published in
the Internal Revenue Bulletin.

Consistent with these provisions, if a letter ruling relates to a continuing action or a series of
actions, it ordinarily will be applied until any one of the events described above occurs or until
it is specifically withdrawn.

Publication of a notice of proposed rulemaking will not affect the application of any letter
ruling issued under this revenue procedure.

Where a letter ruling is revoked or modified by a letter to the taxpayer, the letter will state
whether the revocation or modification is retroactive. Where a letter ruling is revoked or modified
by the issuance of final or temporary regulations or by the publication of a revenue ruling, revenue
procedure, notice, or other statement in the Internal Revenue Bulletin, the document may contain
a statement as to its retroactive effect on letter rulings.

A letter ruling may be revoked even if the subject of the letter ruling is a matter that the Service
currently does not issue rulings on.

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

.05 An Associate office will revoke or modify a letter ruling and apply the revocation
retroactively to the taxpayer for whom the letter ruling was issued or to a taxpayer whose tax
liability was directly involved in the letter ruling if-

(1) there has been a misstatement or omission of controlling facts;

(2) the facts at the time of the transaction are materially different from the controlling facts on
which the letter ruling was based; or

(3) the transaction involves a continuing action or series of actions and the controlling facts
change during the course of the transaction.

Not otherwise generally
revoked or modified
retroactively

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

(1) there has been no change in the applicable law;

(2) the letter ruling was originally issued for a proposed transaction; and

(3) the taxpayer directly involved in the letter ruling acted in good faith in relying on the letter

ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer's
detriment. For example, the tax liability of each shareholder is directly involved in a letter ruling
on the reorganization of a corporation. Depending on all facts and circumstances, the sharehold-
ers' reliance on the letter ruling may be in good faith. The tax liability of a member of an industry,
however, is not directly involved in a letter ruling issued to another member of the same industry.
Therefore, a nonretroactive revocation or modification of a letter ruling to one member of an
industry will not extend to other members of the industry who have not received letter rulings. By
the same reasoning, a tax practitioner may not extend to one client the non-retroactive application
of a revocation or modification of a letter ruling previously issued to another client.

If a letter ruling is revoked or modified by a letter to the taxpayer with retroactive effect, the
letter to the taxpayer will, except in fraud cases, state the grounds on which the letter ruling is
being revoked or modified and explain the reasons why it is being revoked or modified
retroactively.

Retroactive effect of
revocation or modification
applied to a particular
transaction

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

If a letter ruling on a transaction is later found to be in error or no longer in accord with the
position of the Service, it will not protect a similar transaction of the taxpayer in the same year
or later year.

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

.08 If a letter ruling is issued covering a continuing action or series of actions and the letter
ruling is later found to be in error or no longer in accord with the position of the Service, the
appropriate Associate Chief Counsel ordinarily will limit the retroactive effect of the revocation
or modification to a date that is not earlier than that on which the letter ruling is revoked or
modified. For example, the retroactive effect of the revocation or modification of a letter ruling
covering a continuing action or series of actions ordinarily would be limited in the following
situations when the letter ruling is in error or no longer in accord with the position of the Service:

(1) A taxpayer received a letter ruling that certain payments are excludable from gross income
for Federal income tax purposes. The taxpayer ordinarily would be protected only for the payment
received after the letter ruling was issued and before the revocation or modification of the letter
ruling.

(2) A taxpayer rendered a service or provided a facility that is subject to the excise tax on
services or facilities and, in relying on a letter ruling received, it did not pass the tax on to the user
of the service or the facility.

(3) An employer incurred liability under the Federal Insurance Contributions Act but, in relying
on a letter ruling received, neither collected the employee tax nor paid the employee and employer
taxes under the Federal Insurance Contributions Act. The retroactive effect would be limited for
both the employer and employee tax. The limitation would be conditioned on the employer
furnishing wage data, as may be required by § 31.6011(a)-1 of the Treasury Regulations.

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

.09 A letter ruling holding that the sale or lease of a particular article is subject to the
manufacturer's excise tax or the retailer's excise tax may not retroactively revoke or modify an
earlier letter ruling holding that the sale or lease of such an article was not taxable if the taxpayer
to whom the letter ruling was issued, in relying on the earlier letter ruling, gave up possession or

Sec. 11.07
January 2, 2018

ownership of the article without passing the tax on to the customer. See § 1108(b), Revenue Act
of 1926.

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

Taxpayer may request that
retroactivity be limited

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

.11 Under § 7805(b), the Service may prescribe any extent to which a revocation or modifi-
cation of a letter ruling will be applied without retroactive effect.

A taxpayer to whom a letter ruling has been issued may request that the appropriate Associate
Chief Counsel limit the retroactive effect of any revocation or modification of the letter ruling.

For letter rulings governed by Rev. Proc. 2018-4, this Bulletin, a taxpayer to whom a letter
ruling has been issued by the Commissioner, Tax Exempt and Government Entities may request
limiting the retroactive effect of any revocation or modification of the letter ruling pursuant to the
procedures set forth in section 29 of Rev. Proc. 2018-4, this Bulletin.

## Format of request

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

(a) state that it is being made under§ 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief requested (including a discussion
of section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue
procedure, and any other factors as they relate to the taxpayer's particular situation); and

(d) include any documents bearing on the request.

A request that the Service limit the retroactive effect of a revocation or modification of a letter
ruling may be made in the form of a separate request for a letter ruling when, for example, a
revenue ruling has the effect of modifying or revoking a letter ruling previously issued to the
taxpayer or when the Service notifies the taxpayer of a change in position that will have the effect
of revoking or modifying the letter ruling.

When notice is given by the Field office during an examination of the taxpayer's return or by
Appeals, during consideration of the taxpayer's return before Appeals, a request to limit
retroactive effect must be made in the form of a request for technical advice as explained in
section 14.02 of Rev. Proc. 2018-2, this Bulletin.

When germane to a pending letter ruling request, a request to limit the retroactive effect of a
revocation or modification of a letter ruling may be made as part of the request for the letter
ruling, either initially or at any time before the letter ruling is issued. When a letter ruling that
concerns a continuing transaction is revoked or modified by, for example, a subsequent revenue

ruling, a request to limit retroactive effect must be made before the examination of the return that
contains the transaction that is the subject of the letter ruling request.

Request for conference

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

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

Directors issue determination letters only if the question presented is specifically answered by a statute, tax treaty, or regulations, a conclusion stated in a revenue ruling, or an opinion or court decision that represents the position of the Service.

Under no circumstances will a Director issue a determination letter unless it is clearly shown that the request concerns a return that has been filed or is required to be filed and over which the Director has, or will have, examination jurisdiction. A determination letter does not include assistance provided by the U.S. competent authority pursuant to the mutual agreement procedure in tax treaties as set forth in Rev. Proc. 2015-40, 2015-35 I.R.B. 236.

In income and gift tax matters

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

In estate tax matters

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

In generation-skipping transfer tax matters

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

In employment and excise tax matters

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

Requests concerning income, estate, or gift tax returns

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

Review of determination letters

.06 Determination letters issued under sections 12.01 through 12.04 of this revenue procedure are not reviewed by the Associate offices before they are issued. If a taxpayer believes that a determination letter of this type is in error, the taxpayer may ask the Director to reconsider the matter or to request technical advice from an Associate office as explained in Rev. Proc. 2018-2, this Bulletin. The preceding sentence does not apply to SS-8 requests under section 12.04. If a taxpayer disagrees with a determination of employment status made in response to an SS-8 request, the taxpayer may request that the SS-8 Program reconsider the determination letter if the taxpayer has additional information concerning the relationship that was not part of the original submission or the taxpayer can identify facts that were part of the original submission that the taxpayer thinks were not fully considered.

# SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?

Has same effect as a letter
ruling

.01 A determination letter issued by a Director has the same effect as a letter ruling issued to
a taxpayer under section 11 of this revenue procedure.

If a Field office proposes to reach a conclusion contrary to that expressed in a determination
letter, that office need not refer the matter to the Associate office as is required for a letter ruling
found to be in error. The Field office must, however, refer the matter to the Associate office
through the appropriate Director if it desires to have the revocation or modification of the
determination letter limited under § 7805(b), except if the determination letter has been issued by
the Commissioner, Tax Exempt and Government Entities. See Rev. Proc. 2018-4 and Rev. Proc.
2018-5.

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

.02 Under § 7805(b), the Service may prescribe the extent to which a revocation or modifi- cation of a determination letter will be applied without retroactive effect. A Director does not have authority under § 7805(b) to limit the revocation or modification of the determination letter. Therefore, if the Field office proposes to revoke or modify a determination letter, the taxpayer may request limitation of the retroactive effect of the revocation or modification by asking the Director that issued the determination letter to seek technical advice from the Associate office. See section 14.02 of Rev. Proc. 2018-2, this Bulletin.

A taxpayer to whom a determination letter has been issued by the Commissioner, Tax Exempt and Government Entities may request limiting the retroactive effect of any revocation or modification of the determination letter pursuant to the procedures set forth in section 23 of Rev. Proc. 2018-4, or section 12.04 of 2018-5, this Bulletin.

Format of request

(1) Request for relief under § 7805(b) must be made in required format. A taxpayer's request to limit the retroactive effect of the revocation or modification of the determination letter must be in the form of, and meet the general requirements for, a technical advice request. See section 14.02 of Rev. Proc. 2018-2, this Bulletin. The request must also-

(a) state that it is being made under § 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief sought (including a discussion of section 11.05 of this revenue procedure, the three items listed in section 11.06 of this revenue procedure, and any other factors as they relate to the taxpayer's particular situation); and

(d) include any documents bearing on the request.

Request for conference

(2) Taxpayer may request a conference on application of § 7805(b). When technical advice is requested regarding the application of § 7805(b), the taxpayer has the right to a conference with the Associate office to the same extent as does any taxpayer who is the subject of a technical advice request. See section 14.04 of Rev. Proc. 2018-2, this Bulletin.

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

Requests for determination letters

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

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

No-rule areas

.02 If the request involves an issue on which the Service will not issue a letter ruling or determination letter, the request will not be forwarded to an Associate office. The Director will

Sec. 13.02
January 2, 2018

notify the taxpayer that the Service will not issue a letter ruling or a determination letter on the
issue. See section 6 of this revenue procedure for a description of no-rule areas.

## Requests for letter rulings

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

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

## Letter ruling request mistakenly sent to a Director

## SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER RULINGS AND DETERMINATION LETTERS?

### Legislation authorizing user fees

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

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

Requests to which a user
fee applies

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

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

(2) closing agreements described in paragraph (A)(3)(d) of Appendix A of this revenue
procedure and pre-filing agreements described in Rev. Proc. 2016-30, 2016-21 I.R.B. 981 (or its
successor);

(3) renewal of advance pricing agreements;

(4) reconsideration of letter rulings or determination letters; and

(5) supplemental letter rulings, determination letters, etc. to correct mistakes in original letter
rulings, determination letters, etc.

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

### Requests to which a user fee does not apply

.03 User fees do not apply to-

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

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

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

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

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

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

(7) information letters; or

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

### Exemptions from the user fee requirements

.04 The user fee requirements do not apply to-

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

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

Fee schedule

.05 The schedule of user fees is provided in Appendix A of this revenue procedure. For the user
fee requirements applicable to-

(1) requests for advance pricing agreements or renewals of advance pricing agreements, see
section 3.05 of Rev. Proc. 2015-41, 2015-35 I.R.B. 263; or

(2) requests for letter rulings, determination letters, etc. under the jurisdiction of the Commis-
sioner, Tax Exempt and Government Entities Division (which no longer include changes in
method of accounting), see Rev. Proc. 2018-4 and Rev. Proc. 2018-5, this Bulletin.

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

.06

(1) Requests involving several offices. If a request dealing with only one transaction involves
more than one office within the Service (for example, one issue is under the jurisdiction of the
Associate Chief Counsel (Passthroughs and Special Industries) and another issue is under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division), only one fee
applies, namely the highest fee that otherwise would apply to each of the offices involved. See
Rev. Proc. 2018-4 and Rev. Proc. 2018-5, this Bulletin, for the user fees applicable to issues
under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division.

(2) Requests involving several fee categories. If a request dealing with only one transaction
involves more than one fee category, only one fee applies, the highest fee that otherwise would
apply to each of the categories involved.

(3) Requests involving several issues. If a request dealing with only one transaction involves
several issues, a request for a change in method of accounting dealing with only one item or
submethod of accounting involves several issues, or a request for a change in accounting period
dealing with only one item involves several issues, the request is treated as one request. Therefore,
only one fee applies, i.e., the fee that applies to the particular category or subcategory involved.
The addition of a new issue relating to the same transaction, item, or submethod will not result
in an additional fee unless the issue places the transaction, item, or submethod in a higher fee
category. So long as the issues all relate to a single transaction, a request that the Service address
one or more of the issues in a separate ruling will not result in an additional fee.

(4) Requests involving several unrelated transactions. If a request involves several unrelated
transactions, a request for a change in method of accounting involves several unrelated items or
submethods of accounting, or a request for a change in accounting period involves several
unrelated items, each transaction or item is treated as a separate request. As a result, a separate
fee will apply for each unrelated transaction, item, or submethod. An additional fee will apply if
the request is changed by the addition of an unrelated transaction, item, or submethod not
contained in the initial request. An example of a request involving unrelated transactions is a
request involving relief under § 301.9100-3 and the underlying issue.

(5) Requests involving several entities. Each entity involved in a transaction (for example, a
reorganization) that desires a separate letter ruling in its own name must pay a separate fee
regardless of whether the transaction or transactions may be viewed as related. But see section
15.07 of this revenue procedure.

(6) Requests made by married taxpayers who file jointly. A married couple filing a joint
return may jointly request a single letter ruling and pay a single user fee if the issues arise from
a joint activity or if the spouses would otherwise qualify for substantially identical letter rulings.
If a spouse desires a ruling to be individually issued to him or her, a separate fee must be paid
for each individual request. But see section 15.07 of this revenue procedure (providing a reduced
user fee for substantially identical letter rulings or substantially identical changes in method of
accounting).

Applicable user fee for
requests for substantially
identical letter rulings,
closing agreements, or
identical changes in
method of accounting

.07

(1) In general. The user fees provided in paragraph (A)(5) of Appendix A of this revenue
procedure apply to the situations described in sections 15.07(2) and 15.07(4) of this revenue
procedure. To assist in the processing of these user fee requests, all letter ruling requests
submitted under this section 15.07 should-

(a) except for non-automatic Forms 3115, include the following typed or printed language at
the top of the letter ruling request: "REQUEST FOR USER FEE UNDER SECTION 15.07 OF
REV. PROC. 2018-1";

(b) list on the first page of the submission all taxpayers and entities, and separate and distinct
trades or businesses, including qualified subchapter S subsidiaries (QSubs) or single member
limited liability companies (single member LLCs), requesting a letter ruling (including the
taxpayer identification number and the amount of user fee submitted for each taxpayer, entity, or
separate and distinct trade or business); and

If the Service determines that the letter ruling requests do not qualify for the user fee provided
in paragraph (A)(5) of Appendix A of this revenue procedure, the Service will request the proper
fee. See section 15.09 of this revenue procedure.

(2) Substantially identical letter rulings and closing agreements. The user fee provided in
paragraph (A)(5)(a) of Appendix A of this revenue procedure applies to a taxpayer or taxpayers
requesting substantially identical letter rulings (including accounting period, method of account-
ing, and earnings and profits requests other than those submitted on Form 1128, Application to
Adopt, Change, or Retain a Tax Year, Form 2553, Election by a Small Business Corporation,
Form 3115, Application for Change in Accounting Method, and Form 5452, Corporate Report of
Nondividend Distributions) in the following situations:

(a) The taxpayers to whom the letter rulings will be issued are multiple entities with a common
member or sponsor, or multiple members of a common entity; or

(b) The taxpayers to whom the letter rulings will be issued are parties engaged together in the
same transaction affecting all requesting taxpayers.

To qualify for this reduced user fee, all information and underlying documents must be
substantially identical and all letter ruling requests must be submitted at the same time in a single
submission. In addition, the taxpayer(s) must state that the letter ruling requests and all infor-
mation and underlying documents are substantially identical, and must specifically identify the
extent to which the letter ruling requests, information, and underlying documents are not identical.

If a taxpayer or taxpayers requesting reduced user fees pursuant to this section 15.07(2) also
request a pre-submission conference pursuant to section 10.07, the taxpayer(s) should notify the
Associate office at or before the pre-submission conference that the taxpayer(s) intend to request
reduced user fees pursuant to this paragraph. At the pre-submission conference, the taxpayer(s)
should discuss with the Associate office how the letter ruling requests will satisfy the require-
ments of this paragraph.

The reduced fee for substantially identical letter rulings is applicable to taxpayers requesting
closing agreements as described in section 2.02 of this revenue procedure, assuming they meet the
requirements described above for letter rulings.

(3) Substantially identical plans under § 25(c)(2)(B). The user fee provided in paragraph
(A)(5)(c) of Appendix A of this revenue procedure shall apply to a taxpayer who submits
substantially identical plans for administering the 95-percent requirement of § 143(d)(1) follow-
ing the submission and approval of an initial plan for administering the requirement. The request
for subsequent approvals of substantially identical plans must (1) state that a prior plan was
submitted and approved and include a copy of the prior plan and approval; (2) state that the
subsequent plan is substantially identical to the approved plan; and (3) describe any differences
between the approved plan and the subsequent plan.

(4) Identical changes in method of accounting and related § 301.9100 letter rulings. A
common parent of a consolidated group, or other taxpayer, is eligible for the user fees provided
in paragraphs (A)(5)(b) and (d) of Appendix A of this revenue procedure when requesting an
identical change in method of accounting on a single Form 3115, Application for Change in
Accounting Method, or an extension of time to file Form 3115 under § 301.9100-3 for the
identical change in method of accounting, for two or more of the following in any combination-

(a) members of that consolidated group;

(b) separate and distinct trades or businesses (for purposes of § 1.446-1(d)) of that taxpayer or
member(s) of that consolidated group. Separate and distinct trades or businesses, include QSubs
and single member LLCs;

(d) controlled foreign corporations (CFCs) and noncontrolled § 902 corporations (10/50
corporations) that do not engage in a trade or business within the United States where (i) all
controlling U.S. shareholders of the CFCs and all majority domestic corporate shareholders of the
10/50 corporations, as applicable, are members of that consolidated group; or (ii) the taxpayer is
the sole controlling U.S. shareholder of the CFCs or the sole domestic corporate shareholder of
that 10/50 corporation.

To qualify as an identical change in method of accounting, the multiple entities wholly owned
or controlled by a consolidated group or other taxpayer, or separate and distinct trades or
businesses (that is, the applicants) must request to change from an identical present method of
accounting to an identical proposed method of accounting. All aspects of the requested change in
method of accounting must be identical, including the year of change, the present and proposed
methods, the underlying facts and the authority for the request, except for the § 481(a) adjust-
ments. If the Associate office determines that the requested changes in method of accounting are
not identical, additional user fees will be required before any letter ruling is issued.

The taxpayer or common parent must, for each applicant for which the change in method of
accounting is being requested, attach to the Form 3115 a schedule providing the name, employer
identification number (where applicable), and § 481(a) adjustment. If the request is on behalf of
eligible CFCs or 10/50 corporations, the taxpayer or common parent must attach a statement that
"[a]ll controlling U.S. shareholders (as defined in § 1.964-1(c)(5)(i)) of all the CFCs to which the
request relates are members of the common parent's consolidated group," "[a]Il majority domestic
corporate shareholders (as defined in § 1.964-1(c)(5)(ii)) of all the 10/50 corporations to which
the request relates are members of the common parent's consolidated group," that "[t]he taxpayer

filing the request is the sole controlling U.S. shareholder (as defined in § 1.964-1(c)(5)) of the
CFCs to which the request relates," or "[t]he taxpayer filing the request is the sole domestic
corporate shareholder (as defined in § 1.964-1(c)(5)) of the 10/50 corporations to which the
request relates," as applicable. If the request is on behalf of eligible partnerships, the common
parent must attach a statement that "[a]ll partnerships to which the request relates are wholly-
owned by members of the common parent's consolidated group."

In the case of a § 301.9100 request for an extension of time to file a Form 3115 requesting an
identical change in method of accounting for multiple members of a consolidated group and/or
multiple separate and distinct trades or businesses of a taxpayer or member(s) of the consolidated
group, or multiple eligible CFCs or 10/50 corporations (applicants), the taxpayer or common
parent must submit the information required in the preceding paragraph in addition to the
information required by section 5.03 of this revenue procedure.

### Method of payment

.08 Each request to the Service that is subject to a user fee under this revenue procedure must
be accompanied by full payment. The exclusive means for paying the user fees in this revenue
procedure is through www.pay.gov.

## Effect of nonpayment or payment of incorrect amount

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

If a payment is made for more than the correct amount, the request will be accepted and the
amount of the excess payment will be returned to the taxpayer.

If a ruling is issued and because of the ruling the taxpayer's gross income is reduced such that
the taxpayer would have qualified for a reduced user fee in Appendix A, paragraph (A)(4), the
amount of user fee paid in excess of the reduced fee is an excess payment and will be returned
to the taxpayer.

Refunds of user fee

.10 In general, user fees will not be refunded. User fees, however, will be refunded in the
following situations.

(1) A user fee paid with a request to correct a mistake or omission in a prior issued letter ruling,
determination letter, etc., will be refunded if the Service determines that the Service was
responsible for the mistake or omission.

(2) A user fee paid with a request for relief under § 7805(b) in connection with the revocation
in whole or in part, of a previously issued letter ruling, determination letter, etc., will be refunded
if the relief is granted. (The user fee paid for the letter ruling, determination letter, etc. that was
revoked is never refunded.)

(3) A user fee paid with a request for reconsideration of the Service's decision not to rule on

an issue will be refunded if the Service agrees to rule on the issue and the user fee paid with the
initial request was not refunded.

(4) If the requested ruling, determination letter, etc., is not issued for any reason, and the
Service determines that a refund is appropriate after taking into account all the facts and
circumstances, including the amount of the Service's time and resources spent on the request, the
user fee will be refunded.

## Request for reconsideration of user fee

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

If the matter involves
primarily:

Mark for the attention of:

Associate Chief Counsel
(Corporate) letter ruling
requests

Associate Chief Counsel (Corporate)

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

Associate Chief Counsel (Financial Institutions and Products)

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

Associate Chief Counsel (Income Tax and Accounting)

Associate Chief Counsel
(International) letter ruling
requests

Associate Chief Counsel (International)

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

Associate Chief Counsel (Passthroughs and Special Industries)

Associate Chief Counsel
(Procedure and
Administration) letter
ruling requests

Associate Chief Counsel (Procedure and Administration)

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

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

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

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

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

## SECTION 16. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REV. PROC. 2017-1?

Assistant Deputy Commissioner, Compliance Integration

The appropriate SB/SE official listed in Appendix F

Director, Employee Plans Examinations
Director, Exempt Organizations Examinations
Director, Indian Tribal Governments and Tax Exempt Bonds

(Add name of Field office handling the request)

Editorial changes have been made throughout.

Sections 6.03 and 6.11 were amended to reflect the pilot program for letter rulings on the tax
consequences of a distribution of stock, or stock and securities, of a controlled corporation under
§ 355 of the Internal Revenue Code and the procedures relating to these rulings. Conforming
changes were made throughout.

Section 7.01 was amended to reflect that requests for determinations under section 12.04 of this
revenue procedure regarding the Form SS-8 program may be submitted via electronic transmis-
sion.

Section 7.01 was also amended to require a statement regarding the involvement of a transactional
party located in a foreign country when a request involves a transaction between a taxpayer and
a related party and either the taxpayer or the related party is located in a foreign country.

Section 11.04 was amended to clarify that a ruling can be revoked even if the subject of the ruling
is a matter that the Service no longer rules on.

Sections 15.08 and 15.09 were amended to reflect that www.pay.gov is now the exclusive means
for making payments for user fees under this revenue procedure. Conforming changes were made
throughout.

Section 15.09 was amended, and Appendix A, paragraph (B)(6) was added, to clarify the
applicable user fee when a taxpayer's gross income amount and eligibility for a reduced user fee
under Appendix A, paragraph (A)(4), depends on receiving a favorable ruling.

Section 15.10 was amended to clarify the rules regarding refunds of fees paid under this revenue
procedure. Conforming changes were made throughout.

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

.01 Rev. Proc. 2017-1, 2017-1 I.R.B. 1 is superseded.

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

This revenue procedure is effective January 2, 2018.

SECTION 19. PAPERWORK REDUCTION ACT

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

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.

The collections of information in this revenue procedure are in sections 5.06, 6.03, 7.01, 7.02, 7.03, 7.04, 7.05, 7.07, 7.08, 8.02. 8.05, 8.07, 10.01, 10.06, 10.07, 11.11, 13.02, 15.02, 15.07, 15.08, 15.09, 15.11, paragraph (B)(1) of Appendix A, Appendix C, Appendix D, Appendix E, and Appendix G (subject matter-rate orders; regulatory agency; normalization). This information is required to evaluate and process the request for a letter ruling or determination letter. In addition, this information will be used to help the Service delete certain information from the text of the letter ruling or determination letter before it is made available for public inspection as required by § 6110. The collections of information are required to obtain a letter ruling or determination letter. The likely respondents are businesses or other for-profit institutions and tax exempt organizations.

The estimated total annual reporting and/or recordkeeping burden is 316,020 hours.

The estimated annual burden per respondent/recordkeeper varies from 1 to 200 hours, depend- ing on individual circumstances, with an estimated average burden of 80 hours. The estimated number of respondents and/or recordkeepers is 3,956.

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by § 6103.

DRAFTING INFORMATION

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

(1) the Associate Chief Counsel (Corporate), contact Ken Cohen or Jean R. Broderick at (202) 317-7700 (not a toll-free call),

(2) the Associate Chief Counsel (Financial Institutions and Products), contact Julanne Allen at (202) 317-6945 (not a toll-free call),

(3) the Associate Chief Counsel (Income Tax and Accounting), contact R. Matthew Kelley at
(202) 317-7002 (not a toll-free call),

(4) the Associate Chief Counsel (Passthroughs and Special Industries), contact Anthony
McQuillen at (202) 317-6850 (not a toll-free call),

(5) the Associate Chief Counsel (Procedure and Administration), contact Charles A. Hall at
(202) 317-3400 (not a toll-free call),

(6) the Associate Chief Counsel (Tax Exempt and Government Entities), contact Michael B.
Blumenfeld at (202) 317-6000 (not a toll-free call), or

(7) the Associate Chief Counsel (International), contact Nancy Galib at (202) 317-3800 (not a
toll-free call).

For further information regarding user fees, contact the Docket, Records, and User Fee Branch
at (202) 317-5221 (not a toll-free call).

For further information regarding determination letters:

SBSE and WI taxpayers should contact the offices listed in Appendix F of this Revenue
Procedure;

LB&I taxpayers should contact Melanie Perrin in the Office of Compliance Integration, LB&I,
at (202) 317-3157 (not a toll-free call);

TE/GE taxpayers should also refer to Revenue Procedures 2018-4 and 2018-5, this bulletin.

## INDEX

References are to sections in Rev. Proc. 2018-1

### Additional Information

\- penalties of perjury statement required
8.05(4)

\- proposed deletions under § 6110

7.01(12)

\- information requested during initial and subsequent contacts.
failure to submit

8.05

8.05(3)

subsequent information after conference
10.06

\- where to send.

8.05(6)

### Changes in Method of Accounting or Accounting Period

\- applicable sections of Rev. Proc. 2018-1 for changes in method of accounting.
9

\- applicable sections of Rev. Proc. 2018-1 for accounting period
Appendix G

9.01, 9.22, Appendix G

\- identical changes in method of accounting

Appendix A

### Checklist Required

7.01(19), Appendix C

#### Conferences

\- offered

10.02

after conference of right

10.05

application of § 6110
7.01(12)(e)

7.02(6)

\- scheduling.

10.01, 10.02

application of § 7805(b)

11.11(2), 13.02(2)

pre-submission conferences

10.07

telephone conferences

10.08

#### Definitions

\- Associate office

1.01(2)

\- closing agreement
2.02

\- determination letter

2.03

\- Director

1.01(3)

\- Field office

1.01(4)

\- taxpayer

1.01(5)

\- information letter

2.04

\- letter ruling

2.01

\- Service.

1.01(1)

Determinations Under § 999(d)

5.04

#### Discussions Not Binding on Service

\- at pre-submission conference

10.07(4)

\- informal opinion expressed

8.04

\- oral advice to taxpayers

2.05(2)

#### Employee Plans and Exempt Organizations

\- jurisdiction of Commissioner, Tax Exempt and Government Entities Division

4.02

\- user fees

4.02

#### Estate Tax Matters

\- issuance of determination letters

12.02, 12.05

\- issuance of letter rulings

5.06

under § 2032A(c)

5.07

\- requesting a conference

\- automatic change request procedures
9.15, 15.07, Appendix A

\- user fees

# INDEX

Expedited Handling of Letter Ruling and Determination Letter Requests

7.02(4)

Extension of Time

- to schedule conference

10.01

- to submit additional information

8.05(2)

Fax Transmission

- to receive letter ruling

7.02(5)

- to receive request for additional information

7.02(5)

- to submit additional information

8.05(5)

- letter ruling requests must not be submitted by fax

7.04(1)(c)

Hand Delivery of Letter Ruling Requests

7.04(1)

No-Rule Areas

Oral Advice to Taxpayers

2.05

Penalties of Perjury Statement

- form for letter ruling request

7.01(16)(a)

- form for submission of additional information

8.05(4)

- required with draft letter ruling

8.07

- signature requirements

7.01(16)(b)

Pending Letter Ruling Requests

- when to attach a copy to return

7.05(2)

estate tax matters

5.06

- when to notify Associate office

7.05

estate tax matters

5.06

Power of Attorney

- Form 2848.

7.01(15), 7.02(2)

original sent to the taxpayer

7.02(2)

copy sent to a representative

7.02(2)

copies sent to multiple representatives

7.02(2)

no copy sent to representatives

7.02(2)

- signature requirements

7.01(15)

Public Disclosure of Information Letters

2.04

Public Inspection Under § 6110

7.01(12)

- signature requirements

7.01(12)(c)

Representatives

- compliance with Treasury Department Circular No. 230

7.01(14)

- power of attorney required

7.01(15)

- requirements

7.01(14)

authorized representatives

7.01(14)(a)

authorized based on relationship

7.01(14)(b)

return preparer

7.01(14)(c)

foreign representative

7.01(14)(d)

Retroactive Revocation or Modification

- of determination letter

request to limit retroactive effect.

13.02

- of letter ruling

11.05 - 11.10

request to limit retroactive effect

11.11

Revenue Rulings

# INDEX

- effect on a letter ruling

11.04

- request to limit retroactive effect

11.11

Sample of a Letter Ruling Request

7.01(18), Appendix B

Section 301.9100 Relief

5.03

Section 367 Rulings

5.05

Status of Letter Ruling and Determination Letter Requests

7.07

Substantially Identical Letter Rulings

15.07(2), Appendix A

Tax Exempt and Government Entities

- jurisdiction of Commissioner, Tax Exempt and Government Entities Division

4.02

- user fees

4.02

User Fees

- schedule of user fees

Appendix A

- user fee requirements

to reopen case

8.05(3)

Where to Send

- determination letter request.

7.04

- letter ruling request

7.04, 9.05

additional information

8.05(6), 9.08(6)

hand delivery

7.04(1)

Withdrawal of Letter Ruling and Determination Letter Requests.

7.08

# APPENDIX A SCHEDULE OF USER FEES

NOTE: Payment must be in U.S. dollars and made through www.pay.gov. See section 15.09.
(A) FEE SCHEDULE

CATEGORY

USER FEE FOR REQUESTS RECEIVED PRIOR TO FEBRUARY 2, 2018

USER FEE FOR REQUESTS RECEIVED AFTER FEBRUARY 1, 2018

(1) User fee for a request for a determination letter from a Direc- tor. The user fee for each determination letter request governed by Rev. Proc. 2018-1, this revenue procedure.

$275

(2) User fee for a request for an advance pricing agreement or a renewal of an advance pricing agreement.

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

(3) User fee for a request for a letter ruling or closing agreement. Except for the user fees for advance pricing agreements and renewals, the reduced fees provided in paragraph (A)(4) of this appendix, the user fees provided in paragraph (A)(5) of this appendix, and the ex- emptions provided in section 15.04 of this revenue procedure, the user fee for each request for a letter ruling or closing agreement under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Procedure and Administration), or the Associate Chief Counsel (Tax Exempt and Government Entities) is as follows:

(a) Accounting periods

(i) Form 1128, Application to Adopt, Change, or Retain a Tax Year, (except as provided in paragraph (A)(4)(a) of this appendix)

$5,800

(ii) Requests made on Part II of Form 2553, Election by a Small Business Corporation, to use a fiscal year based on a business purpose (except as provided in paragraph (A)(4)(a) of this appendix)

$5,800

(iii) Letter ruling requests for extensions of time to file Form 1128, Application to Adopt, Change, or Retain a Tax Year, Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, or Part II of Form 2553 un- der § 301.9100-3 (except as provided in paragraph (A)(4)(a) of this appendix)

$5,400

(b) Changes in Methods of Accounting

(i) Non-automatic Form 3115, Application for Change in Ac- counting Method (except as provided in paragraph (A)(4)(a) or (b), or (5)(b) of this appendix)

$9,500

(ii) Letter ruling requests for extensions of time to file Form 3115, Application for Change in Accounting Method, un- der § 301.9100-3 (except as provided in paragraph (A)(4)(a) or (b), or (5)(c) of this appendix)

$10,000

No user fee is required if the change in accounting period or method of accounting is permitted to be made pursuant to a published auto- matic change request procedure. See section 9.22 and Appendix G of Rev. Proc. 2018-1, this revenue procedure, for the list of automatic change request procedures published and/or in effect as of December 31, 2017.

CATEGORY

USER FEE FOR REQUESTS RECEIVED PRIOR TO FEBRUARY 2, 2018

USER FEE FOR REQUESTS RECEIVED AFTER FEBRUARY 1, 2018

(c) (i) Letter ruling request for relief under § 301.9100-3 (except as provided in paragraph (A)(4)(a) or (b), or (5)(a) of this appendix)

$10,000

(ii) All other letter ruling requests (including accounting period and method of accounting requests other than those properly submitted on Form 1128, Application to Adopt, Change, or Retain a Tax Year, Part II of Form 2553, Election by a Small Business Corporation, or Form 3115, Application for Change in Accounting Method) (except as provided in para- graph (A)(4)(a) or (b), or (5)(a) of this appendix)

$28,300

(d) Requests for closing agreements on a proposed transaction or on a completed transaction before a return for the transaction has been filed in which a letter ruling on that transaction is not requested or issued (except as provided in paragraph (A)(4)(a) or (b), and in paragraph (A)(5), of this appendix) (e) A request for a Foreign Insurance Excise Tax Waiver Agree- ment

$28,300

$7,200

$8,000

NOTE: A taxpayer who receives relief under § 301.9100-3 (for exam- ple, an extension of time to file Form 3115, Application for Change in Accounting Method) will be charged a separate user fee for the letter ruling request on the underlying issue (for example, the accounting period or method of accounting application).

(4) Reduced user fee for a request for a letter ruling, method or period change, or closing agreement. A reduced user fee for a re- quest involving a personal, exempt organization, governmental entity, or business tax issue is provided in the following situations if the per- son provides the certification described in paragraph (B)(1) of this appendix:

(a) Request involves a tax issue from a person with gross income (as determined under paragraphs (B)(2), (3), (4), and (5) of this appendix) of less than $250,000

$2,400

(b) Request involves a tax issue from a person with gross income (as determined under paragraphs (B)(2), (3), (4), and (5) of this appendix) of less than $1 million and $250,000 or more.

$7,600

(5) User fee for substantially identical letter ruling requests, clos- ing agreements, identical changes in method of accounting, or plans from issuing authorities under § 25(c)(2)(B). If the require- ments of section 15.07 of Rev. Proc. 2018-1, this revenue procedure, are satisfied, the user fee for the following situations is as follows:

(a) Substantially identical letter rulings and closing agreements requested (other than changes in methods of accounting re- quested on Form 3115) Requests for substantially identical letter rulings or closing agree- ments for multiple entities with a common member or sponsor, or for multiple members of a common entity, or for parties engaged together in the same transaction affecting all requesting taxpayers, for each additional letter ruling request after the $28,300 fee or reduced fee, as applicable, has been paid for the first letter ruling request. These requests may include, but are not limited to, re- quests for substantially identical letter rulings for two or more identical trusts, multiple beneficiaries of a trust, a trust divided into identical subtrusts, spouses making split gifts, or series funds within a single trust or series organization.

$2,700

CATEGORY

USER FEE FOR REQUESTS RECEIVED PRIOR TO FEBRUARY 2, 2018

USER FEE FOR REQUESTS RECEIVED AFTER FEBRUARY 1, 2018

NOTE: Each entity or member that is entitled to the user fee under paragraph (A)(5)(a) of this appendix, that receives relief under § 301.9100-3 (for example, an extension of time to file an election) will be charged a separate user fee for the letter ruling request on the underlying issue. NOTE: The fee charged for the first letter ruling is the highest fee applicable to any of the entities.

NOTE: Where the requests for the letter rulings are submitted by a private foundation described in § 509 and one or more disqualified persons described in § 4946, the fee charged for the first letter ruling to a disqualified person is the highest fee applicable to any of the tax- payers.

(b) Identical change in method of accounting requested on a single Form 3115, Application for Change in Accounting Method, as provided in section 15.07(4). Fee for each additional applicant seeking the identical change in method of accounting on the same Form 3115 after the $8,600 fee or reduced fee, as appli- cable, has been paid for the first applicant.

$200

(c) Substantially identical plans under § 25(c)(2)(B) Situations where an issuing authority under § 25 submits sub- stantially identical plans for administering the 95-percent re- quirement of § 143(d)(1) following the submission of an initial plan that was approved.

$1,500

NOTE: The fee charged for the first letter ruling is the highest fee applicable to any of the entities.

(d) Extension of time requested to file Form 3115, Application for Change in Accounting Method, for an identical change in method of accounting as provided in section 15.07(4). Fee for each additional or each additional applicant seeking the identi- cal extension of time under § 301.9100-3 to file a single Form 3115 for the identical change in method of accounting after the $9,100 fee or reduced fee, as applicable, has been paid for the first applicant.

$200

NOTE: When an extension of time to file Form 3115, Application for Change in Accounting Method, is granted under § 301.9100-3 for multiple applicants, a separate user fee will be charged for the change in method of accounting application, Form 3115.

(6) User fee for information letter requests.

(7) User fee for pre-filing agreements.

$218,600

$174,000

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

$27,500

(9) Statement of Value. See Rev. Proc. 96-15 for procedures for re- questing a statement of value.

(A) User fee for a case with 1-3 items

$5,700

$6,500

(B) Cost per each additional item beyond 3

$290

$300

## (B) PROCEDURAL MATTERS

(1) Required certification. A person seeking a reduced user fee under paragraph (A)(4) of this Appendix must provide the
following certification in order to obtain the reduced user fee:

(a) If a person is seeking a reduced user fee under paragraph (A)(4)(a) of this appendix, the person must certify in the request that
his, her, or its gross income, as defined under paragraphs (B)(2), (3), (4), and (5) of this appendix, as applicable, is less than $250,000
as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the
request is filed.

(b) If a person is seeking a reduced user fee under paragraph (A)(4)(b) of this appendix, the person must certify in the request
that his, her, or its gross income, as defined under paragraphs (B)(2), (3), (4), and (5) of this appendix, as applicable, is less than $1
million and more than $250,000 for the last full (12 months) taxable year ending before the date the request is filed.

The certification must be attached as part of the ruling request.

(2) Gross income for a request involving a personal tax issue. For purposes of the reduced user fees provided in paragraphs
(A)(4)(a) and (b) of this Appendix of-

(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, "gross income" is equal to "total
income" as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period.
"Total income" is a line item on Federal tax returns. For example, if the 2014 Form 1040, U.S. Individual Income Tax Return, is the most
recent 12-month taxable year return filed by a U.S. citizen, "total income" on the Form 1040 is the amount entered on line 22.

In the case of a request for a letter ruling or closing agreement from a domestic estate or trust that, at the time the request is filed,
has not filed a Federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this Appendix will
apply if the decedent's or (in the case of an individual grantor) the grantor's total income as reported on the last Federal income tax
return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required
to be made to total income described in this paragraph (B)(2)(a), is less than $250,000 (or less than $1,000,000 for the paragraph
(A)(4)(b) fee to apply). In this case, the executor or administrator of the decedent's estate or the grantor must provide the certification
required under paragraph (B)(1) of this appendix.

(b) Nonresident alien individuals, foreign trusts, and foreign estates, "gross income" is equal to "total effectively connected
income" as reported on their last Federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus any income for the period from United States or foreign sources that is not taxable by the United States,
whether by reason of § 103, an income tax treaty, § 871(h) (regarding portfolio interest), or otherwise, plus the total amount of any
fixed or determinable annual or periodical income from United States sources, the United States tax liability for which is satisfied
by withholding at the source. "Total effectively connected income" is a line item on Federal tax returns. For example, if the 2014
Form 1040NR, U.S. Nonresident Alien Income Tax Return, is the most recent 12-month taxable year return filed by a nonresident
alien individual, "total effectively connected income" on the Form 1040NR is the amount entered on line 23.

In the case of a request for a letter ruling or closing agreement from a foreign estate or trust that, at the time the request is filed,
has not filed a Federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this Appendix will
apply if the decedent's or (in the case of an individual grantor) the grantor's total income or total effectively connected income, as
relevant, as reported on the last Federal income tax return filed for a full taxable year ending before the date of death or the date of
the transfer, taking into account any additions required to be made to total income or total effectively connected income described
respectively in paragraph (B)(2)(a) of this Appendix or in this paragraph (B)(2)(b), is less than $250,000 (or less than $1,000,000
for the paragraph (A)(4)(b) fee to apply). In this case, the executor or administrator of the decedent's estate or the grantor must
provide the certification required under paragraph (B)(1) of this Appendix.

(3) Gross income for a request involving a business-related tax issue. For purposes of the reduced user fees provided in
paragraphs (A)(4)(a) and (b) of this Appendix of-

(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, "gross income" is equal to gross income
as defined under paragraph (B)(2)(a) of this Appendix, plus "cost of goods sold" as reported on the same Federal income tax return.

(b) Nonresident alien individuals, foreign trusts, and foreign estates, "gross income" is equal to gross income as defined under
paragraph (B)(2)(b) of this Appendix, plus "cost of goods sold" as reported on the same Federal income tax return.

(c) Partnerships with a Form 1065 filing requirement and corporations (foreign and domestic), "gross income" is equal to
"total income" as reported on their last Federal tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus "cost of goods sold" as reported on the same Federal tax return, plus any interest income not subject
to tax under § 103 (interest on state and local bonds) for that period. Partnerships with a Form 1065 filing requirement should also
include "gross rents" reported on Form 8825 at line 2, as well as the income amounts reported on Schedule K Form 1065 at lines
3a, 5, 6a, 7, 8, 9a, 10, and 11 from the same Federal tax return described in the preceding sentence to calculate "gross income" for
the purpose of applying the reduced user fee in paragraph (A)(4) of this Appendix. S Corporations with a Form 1120S filing
requirement should also include "gross rents" reported on Form 8825 at line 2, as well as the income amounts reported on Schedule
K Form 1120S at lines 3a, 4, 5a, 6, 7, 8a, 9, and 10 from the same Federal tax return described in the first sentence of this paragraph

to calculate "gross income" for the purpose of applying the reduced user fee in paragraph (A)(4) of this Appendix. If a partnership
or S Corporation is not required to file or a C corporation is not subject to tax, "total income" and "cost of goods sold" are the
amounts that the partnership or corporation would have reported on the Federal tax return if the partnership or S Corporation had
been required to file or the C corporation had been subject to tax.

"Cost of goods sold" and "total income" are line items on Federal tax returns. For example, if the 2015 Form 1065, U.S. Return
of Partnership Income, is the most recent 12-month taxable year return filed by a partnership, "cost of goods sold" and "total income"
on the Form 1065 are the amounts entered on lines 2 and 8, respectively; if the 2015 Form 1120, U.S. Corporation Income Tax
Return, is the most recent 12-month taxable year return filed by a domestic corporation, "cost of goods sold" and "total income" on
the Form 1120 are the amounts entered on lines 2 and 11, respectively; and if the 2015 Form 1120S, U.S. Income Tax Return for
an S Corporation, is the most recent 12-month taxable year return filed by an S corporation, "cost of goods sold" and "total income"
on the Form 1120S are the amounts entered on lines 2 and 6, respectively.

If, at the time the request is filed, a partnership or corporation subject to tax has not filed a Federal tax return for a full taxable
year, the reduced user fee in paragraph (A)(4)(a) or (b) of this Appendix will apply if, in the aggregate, the partners' or the
shareholders' gross income (as defined in paragraph (B)(3)(a), (b), or (c), of this Appendix, as applicable) is less than $250,000 for
purposes of paragraph (A)(4)(a) or $1 million for purposes of paragraph (A)(4)(b) for the last full (12 months) taxable year ending
before the date the request is filed. In this case, the partners or the shareholders must provide the certification required under
paragraph (B)(1) of this Appendix.

(4) Gross income for a request involving an exempt organization or governmental entity. For purposes of the reduced user
fees provided in paragraphs (A)(4)(a) and (b) of this Appendix of-

(a) Organizations exempt from income tax under "Subchapter F-Exempt Organizations" of the Code, "gross income" is
equal to the amount of gross receipts for the last full (12 months) taxable year ending before the date the request for a letter ruling
or closing agreement is filed.

(b) State, local, and Indian tribal government entities, "gross income" is equal to the annual operating revenue of the
government requesting the ruling for its last fiscal year ending before the date of the ruling request. The annual operating revenue
is to be determined at the government level and not at the level of the government entity or agency making the request.

(5) Special rules for determining gross income. For purposes of paragraphs (B)(2), (3) and (4) of this Appendix, the following
rules apply for determining gross income.

(a) Gross income of individuals, trusts, and estates.

(1) In the case of a request from a married individual, the gross incomes (as defined in paragraph (B)(2) or (3) of this Appendix,
as applicable) of the applicant and the applicant's spouse must be combined. This rule does not apply to an individual: (i) who is
legally separated from his or her spouse and (ii) who did not file a joint income tax return; and

(2) If there are two or more applicants filing the request, the gross incomes (as defined in paragraph (B)(2) or (3) of this Appendix,
as applicable) of the applicants must be combined.

### (b) Gross income of domestic partnerships and corporations.

(1) In the case of a request from a domestic C corporation, the gross income (as defined in paragraph (B)(3) of this Appendix)

of (i) all members of the applicant's controlled group (as defined in § 1563(a), and (ii) any taxpayer who is involved in the
transaction on which the letter ruling or closing agreement is requested, must be combined; and

(2) In the case of a request from a domestic partnership, the gross income (as defined in paragraph (B)(3) of this Appendix) of
(i) the partnership, and (ii) any partner who owns, directly or indirectly, 50 percent or more of the capital interest or profits interest
in the partnership, must be combined.

(3) In the case of a request from an S corporation, the gross income (as defined in paragraph (B)(3) of this Appendix) of (i) the
S corporation, and (ii) any shareholder who owns 50 percent or more of the S corporation, must be combined.

(c) Gross income of exempt organizations. If there are two or more organizations exempt from income tax under Subchapter
F filing the request, the gross receipts (as defined in paragraph (B)(4)(a) of this Appendix) of the applicants must be combined.

(6) When gross income depends on a favorable ruling. If a taxpayer's qualification for a reduced user fee under paragraphs
(A)(4)(a) and (b) of this Appendix depends on the receipt of a favorable ruling, the taxpayer must pay the higher fee with the request
and cannot assume that the Service will rule favorably. If a favorable ruling is issued, and as a result of the ruling the taxpayer's gross
income is reduced such that the taxpayer would qualify for a reduced user fee, the amount that the taxpayer paid in excess of the
reduced user fee will be returned to the taxpayer. See section 15.09.

# APPENDIX B SAMPLE FORMAT FOR A LETTER RULING REQUEST

## INSTRUCTIONS

To assist you in preparing a letter ruling request, the Service is providing this sample format. You are not required to use this
sample format. If your request is not identical or similar to the sample format, the different format will not defer consideration of
your request.

(Insert the date of request)

Internal Revenue Service

Insert either: Associate Chief Counsel (Insert one of the following: Corporate, Financial Institutions and Products, Income Tax
and Accounting, International, Passthroughs and Special Industries, Procedure and Administration, or Tax Exempt and Government
Entities)

Attn: CC:PA:LPD:DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

Dear Sir or Madam:

(Insert the name of the taxpayer) requests a ruling on the proper treatment of (insert the subject matter of the letter ruling request)
under section (insert the number) of the Internal Revenue Code.

[If the taxpayer is requesting expedited handling, a statement to that effect must be attached to, or contained in, the letter ruling
request. The statement must explain the need for expedited handling. See section 7.02(4) of Rev. Proc. 2018-1, this revenue
procedure. Hereafter, all references are to Rev. Proc. 2018-1 unless otherwise noted.]

### A. STATEMENT OF FACTS

1\. Taxpayer Information

[Provide the statements required by sections 7.01(1)(a) and (b).]

2\. Description of Taxpayer's Business Operations

[Provide the statement required by section 7.01(1)(c).]

3\. Facts Relating to Transaction

[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling
request. This statement must include a detailed description of the transaction, including material facts in any accompanying
documents, and the business reasons for the transaction. See sections 7.01(1)(d), 7.01(1)(e), and 7.01(2).]

#### B. RULING REQUESTED

[The ruling request should contain a concise statement of the ruling requested by the taxpayer. The Service prefers that the
language of the requested ruling be exactly the same as the language the taxpayer wishes to receive.]

#### C. STATEMENT OF LAW

[The ruling request must contain a statement of the law in support of the taxpayer's views or conclusion and identify any pending
legislation that may affect the proposed transaction. The taxpayer also is strongly encouraged to identify and discuss any authorities
believed to be contrary to the position advanced in the ruling request. See sections 7.01(6), 7.01(10), 7.01(10), and 7.01(11).]

#### D. ANALYSIS

[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also is strongly encouraged
to identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 7.01(3),
7.01(6), 7.01(9), 7.01(10), and 7.01(11).]

#### E. CONCLUSION

[The ruling request should contain a statement of the taxpayer's conclusion on the ruling requested.]

# F. PROCEDURAL MATTERS

## 1. Revenue Procedure 2018-1 Statements

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

b. [Provide the statement required by section 7.01(5)(a) regarding whether the Service previously ruled on the same or similar
issue for the taxpayer, a related taxpayer, or a predecessor. Please further note that if a reduced user fee is being submitted,
a certification of eligibility for the reduced fee must be included with the ruling request.]

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

d. [Provide the statement required by section 7.01(5)(c) regarding whether the taxpayer, a related taxpayer, or a predecessor
previously submitted a request (including an application for change in method of accounting) involving the same or a
similar issue that is currently pending with the Service.]

e. [Provide the statement required by section 7.01(5)(d) regarding whether, at the same time as this request, the taxpayer or
a related taxpayer is presently submitting another request (including an application for change in method of accounting)
involving the same or similar issue to the Service.]

f. [Provide the statement required by section 7.01(5)(e) regarding whether the taxpayer or a related taxpayer had, or has
scheduled, a pre-submission conference involving the same or a similar issue.]

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

h. [If the letter ruling request involves a transaction between a taxpayer and a related party and either the taxpayer or the
related party is located in a foreign country, provide the statement required by section 7.01(7) regarding whether this letter
ruling potentially relates to any one of these categories (include all that apply): Preferential Regime; Transfer Pricing;
Downward Adjustment; Treaty Permanent Establishment; Related Party Conduit.

i. [Provide the statement required by section 7.01(9) regarding whether the law in connection with the letter ruling request
is uncertain and whether the issue is adequately addressed by relevant authorities.]

j. [If the taxpayer determines that there are no contrary authorities, a statement in the request to this effect should be included.
See section 7.01(10).]

k. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should
contain a statement to that effect. See section 7.02(6).]

l. [If the taxpayer is requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax)
transmission, the ruling request should contain a statement to that effect. See section 7.02(5).]

m. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement
to that effect. See section 7.02(1).]

n. [If the taxpayer is seeking to obtain the user fee provided in paragraph (A)(5)(a) of Appendix A for substantially identical
letter rulings, the letter ruling request must contain the statements required by section 15.07.]

## 2. Administrative

a. [The ruling request should state: "The deletion statement and checklist required by Rev. Proc. 2018-1 are enclosed." See
sections 7.01(12) and 7.01(19).]

b. [The ruling request should state: "The required user fee of $ (Insert the amount of the fee) has been paid through
www.pay.gov" See section 15.09 and Appendix A.]

c. [If the taxpayer's authorized representative is to sign the letter ruling request or is to appear before the Service in connection with the
request, the ruling request should state: "A Power of Attorney is enclosed." See sections 7.01(14), 7.01(15), and 7.02(2).]

Sincerely yours,
(Insert the name of the taxpayer or the taxpayer's authorized repre-
sentative)

By:

Signature

Date

Typed or printed name of
person signing request

### DECLARATION: [See section 7.01(16).]

Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of
my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and
complete.

(Insert the name of the taxpayer)

By:

Signature

Title

Date

(must be signed by taxpayer, not by taxpayer's representative, see section 7.01(16)(b) of this revenue procedure)

Typed or printed name of
person signing declaration

[If the taxpayer is a corporation that is a member of an affiliated group filing consolidated returns, the above declaration must also
be signed and dated by an officer of the common parent of the group. See section 7.01(16).]

# APPENDIX C CHECKLIST

## IS YOUR LETTER RULING REQUEST COMPLETE?

## INSTRUCTIONS

The Service will be able to respond more quickly to your letter ruling request if it is carefully prepared and complete. Use this
checklist to ensure that your request is in order. Complete the four items of information requested before the checklist. Answer each
question by circling "Yes," "No," or "N/A." When a question contains a place for a page number, insert the page number (or
numbers) of the request that gives the information called for by a "Yes" answer to a question. Sign and date the checklist (as
taxpayer or authorized representative) and place it on top of your request.

If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with the
request or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist
is submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will
not cause the return of your request or defer substantive consideration of your request. You should still complete as much of
the checklist as possible and submit it with your request.

TAXPAYER'S NAME

TAXPAYER'S I.D. NO.

ATTORNEY/P.O.A.

PRIMARY CODE SECTION

CIRCLE ONE

ITEM

Yes No

1\. Does your request involve an issue under the jurisdiction of the Associate Chief Counsel (Corporate), the
Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and
Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special
Industries), the Associate Chief Counsel (Procedure and Administration), or the Associate Chief Counsel (Tax
Exempt and Government Entities)? See section 3 of Rev. Proc. 2018-1, this revenue procedure. For issues under
the jurisdiction of other offices, see section 4 of Rev. Proc. 2018-1. (Hereafter, all references are to Rev. Proc.
2018-1 unless otherwise noted.)

Yes No

2\. Have you read Rev. Proc. 2018-1, Rev. Proc. 2018-3, and Rev. Proc. 2018-7, this bulletin, to see if part or all
of the request involves a matter on which letter rulings are not issued or are ordinarily not issued?

Yes No N/A

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

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

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

Yes No N/A
Page

4\. If the request involves a retirement plan qualification matter under § 401(a), § 409, or § 4975(e)(7), have you demonstrated
that the request satisfies the three criteria in section 4.02 of Rev. Proc. 2018-3, this Bulletin, for a ruling?

Yes No N/A Page

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

Yes No

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

Yes No

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

Yes No

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

Yes No

9. Are you requesting a letter ruling under the jurisdiction Page of Associate Chief Counsel (Corporate) on a significant issue (within the meaning of section 3.01(51) of Rev. Proc. 2018-3, this Bulletin) with respect to a transaction described in § 332, § 351, § 355, or § 1036 or a reorganization within the meaning of § 368? See section 6.03(2).

Yes No

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

Yes No

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

Yes No Page

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

Yes No N/A

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

Yes No N/A

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

Yes No

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

Yes No Page

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

Yes No Page

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

Yes No Page

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

Yes No Page

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

Yes No Page

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

Yes No Page

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

Yes No N/A Page

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

Yes No N/A
Page

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

Yes No N/A
Page

24\. If your request is for recognition of Indian tribal government status or status as a political subdivision of an Indian
tribal government, does your request contain a letter from the Bureau of Indian Affairs regarding the tribe's status? See
section 7.01(9), which states that taxpayers are encouraged to submit this letter with the request and provides the address
for the Bureau of Indian Affairs.

Yes No
Page
Yes No
Page_
Yes No
Pages _

25\. Have you included the required statement of relevant authorities in support of your views? See section 7.01(10).

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

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

Yes No N/A
Page __
Yes No N/A
Page __
Yes No

28\. If you determined that there are no contrary authorities, have you included a statement to this effect in your request? See
section 7.01(10).

29\. Have you included in your request a statement identifying any pending legislation that may affect the proposed
transaction? See section 7.01(11).

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

Yes No
Page
Yes No N/A

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

Yes No
Page

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

Yes No N/A

34\. Are you submitting your request in duplicate if necessary? See section 7.01(17).

Yes No N/A
Page
Yes No N/A

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

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

Yes No N/A
37. If you do not want a copy of the letter ruling to be sent to any representative, does the power of attorney contain
a statement to that effect? See section 7.02(2).

Yes No N/A

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

Yes No N/A
Page __

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

Yes No N/A
Page

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

Yes No N/A
Page

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

Yes No

42\. Have you paid the correct user fee through www.pay.gov See section 7.02(6).

31\. Have you (or your authorized representative) signed and dated the request? See section 7.01(13).

Yes No N/A
Page __

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

Yes No N/A
Page

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

Yes No N/A
45. If you qualify for the user fee for substantially identical letter rulings, have you included the required information?
See section 15.07(2) and paragraph (A)(5)(a) of Appendix A.

Page
Yes No N/A
Page _
Yes No N/A

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

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

Rev. Proc.

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

Yes No N/A
Page __
Yes No N/A
Page_

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

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

Yes No N/A
Page __

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

Yes No

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

Yes No

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

Yes No

53\. Have you addressed your request to the attention of the Associate Chief Counsel (Corporate), the Associate Chief
Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate
Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief
Counsel (Procedure and Administration), or the Associate Chief Counsel (Tax Exempt and Government Entities), as
appropriate? The mailing address is:

Internal Revenue Service

Attn: CC:PA:LPD:DRU
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

If a private delivery service is used, the address is:

Internal Revenue Service
Attn: CC:PA:LPD:DRU, Room 5336
1111 Constitution Ave., NW
Washington, DC 20224

The package should be marked: RULING REQUEST SUBMISSION. Improperly addressed requests
may be delayed (sometimes for over a week) in reaching CC:PA:LPD:DRU for initial processing.

Signature

Title or Authority

Date

Typed or printed name of
person signing checklist

# APPENDIX D ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLAN RULING REQUESTS

In order to assist Associate Chief Counsel (Tax Exempt and Government Entities) in processing a ruling request involving
government pick-up plans, in addition to the items in Appendix C please check the following list.

Yes No N/A
1\. Is the plan qualified under § 401(a) of the Code? (Evidence of qualification or representation that the plan is
qualified.)

Page
Yes No N/A
2. Is the organization that established the plan a State or political subdivision thereof, or any agency or
Page_
instrumentality of the foregoing? An example of this would be a representation that the organization that has
established the plan is a political subdivision or municipality of the State.

Yes No N/A
Page _

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

Page

Yes No N/A
4. Are the contributions that are the subject of the ruling request mandatory employee contributions? These
contributions must be for a specified dollar amount or a specific percentage of the participant's compensation and
the dollar amount or percentage of compensation cannot be subject to change.

Yes No N/A
Page
\-

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

Yes No N/A

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

Page_
Yes No N/A
Page_

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

## APPENDIX E ADDITIONAL CHECKLIST FOR CHURCH PLAN RULING REQUESTS

In order to assist Associate Chief Counsel (Tax Exempt and Government Entities) in processing a church plan ruling request, in
addition to the items in Appendix C, please check the following list.

Yes No N/A
1\. Is there specific information showing that the submission is on behalf of a plan established by a named church
Page __
or convention or association of churches? The information must show how the sponsoring organization, if not a
church or convention or association of churches, is controlled by, or associated with, the named church or
convention or association of churches. For example, the board of directors of the sponsoring organization may be
made up of members of the named church, or the sponsoring organization might be listed in the church's official
directory of related organizations whose mission is to further the objectives of the church. In order to be
considered associated with a church or convention or association of churches, the organization must share
common religious bonds and convictions with that church or convention or association of churches.

Yes No N/A
Page

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

Yes No N/A

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

Page

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

Yes No N/A
Page
Yes No N/A
Page_
Yes No N/A
Page _

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

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

Yes No N/A
Page_

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

Yes No N/A
Page

8\. Is the composition of the committee stated?

Yes No N/A

Page_

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

Yes No N/A
Page __

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

# APPENDIX F

## LIST OF SMALL BUSINESS/SELF-EMPLOYED OPERATING DIVISION (SB/SE) OFFICES TO WHICH TO SEND REQUESTS FOR DETERMINATION LETTERS

SB/SE and W&I taxpayers should send requests for determination letters under this Rev. Proc. 2018-1 to the appropriate SB/SE
office listed below. Both the request and its envelope should be marked "DETERMINATION LETTER REQUEST."

# INCOME TAX

Requests for determination letters regarding income tax (including requests from international taxpayers) should be sent to:

Office of the Director, Technical Services
Internal Revenue Service
Attn: SE:S:E:TS
Mail Stop 5000
24000 Avila Road
Laguna Niguel, CA 92677

# ESTATE AND GIFT TAXES

Requests for determination letters regarding estate and gift tax should be sent to:

Program Manager, Estate & Gift Tax Policy
Internal Revenue Service
SE:S:E:HQ:SEP:E&GP
6340 Variel
Woodland Hills, CA 91367

## EMPLOYMENT TAXES

Requests for determination letters regarding employment tax (except for requests for determination of worker status made on
Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, which should
be sent to the address in the Form instructions) should be sent to:

Program Manager, Employment Tax Policy
Internal Revenue Service
Attn: SE:S:E:HQ:SEP
c/o Director, Specialty Examination Policy
5000 Ellin Road, C9-400
Lanham, MD 20706

## EXCISE TAXES

Requests for determination letters regarding excise taxes should be sent to:

Program Manager, Excise Tax Policy
Internal Revenue Service
Attn: SE:S:E:HQ:SEP
c/o Director, Specialty Examination Policy
5000 Ellin Road, C9-400
Lanham, MD 20706

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

Checklists, guideline revenue procedures, and notices

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

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

CODE OR REGULATION SECTION

REVENUE PROCEDURE AND NOTICE

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

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

1.166-2(d)(3)

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

Uniform express determination letter for making election

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

Rev. Proc. 77-37, 1977-2 C.B. 568, as modified by Rev. Proc. 89-30, 1989-1 C.B. 895, and as amplified by Rev. Proc. 77-41, 1977-2 C.B. 574, Rev. Proc. 83-81, 1983-2 C.B. 598 (See also Rev. Proc. 2018-3, this bulletin, Rev. Proc. 84-42, 1984-1 C.B. 521 (superseded, in part, as to no-rule areas by Rev. Proc. 2018-3, Rev. Proc. 86-42, 1986-2 C.B. 722, Rev. Proc. 89-50, 1989-2 C.B. 631, and Rev. Proc. 2017-52, 2017-41 I.R.B. 283 (relating to Transactional Rulings for Covered Transactions). But see section 3.01(53) of Rev. Proc. 2018-3, which states that the Service will not issue a letter ruling as to whether a transaction constitutes a reorganization within the meaning of § 368 (except as provided in section 6.03(2)(b) of this revenue procedure). However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01(53) of Rev. Proc. 2018-3) presented in a reorganization within the meaning of § 368. The information and representations described in these revenue procedures should be included in a letter ruling request only to the extent that they relate to the significant issues with respect to which the letter ruling is requested. See section 6.03(2) of this revenue procedure.

301

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

Nonapplicability on sales of stock of employer to defined contribution plan

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)

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

Checklist questionnaire

311

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

Checklist questionnaire

332

See section 3.01 of Rev. Proc. 2018-3, this Bulletin, which states that the Service will not issue

Checklist questionnaire

a letter ruling on whether a corporate distribution qualifies for nonrecognition treatment under § 332. However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01 of Rev. Proc. 2018-3) presented in a transaction described in § 332. The information and representations described in Rev. Proc. 90-52, 1990-2 C.B. 626, should be

338 Extension of time to make elections

included in a letter ruling request only to the extent that they relate to the significant issues with respect to which the letter ruling is requested. See section 6.03(4).

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

351 Checklist questionnaire

See section 3.01 of Rev. Proc. 2018-3, this Bulletin, which states that the Service will not issue a letter ruling on whether certain transfers to controlled corporations qualify for nonrecognition treatment under § 351. However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01 of Rev. Proc. 2018-3) presented in a transaction described in § 351. The information and representations described in Rev. Proc. 83-59, 1983-2 C.B. 575, should be included in a letter ruling request only to the extent that they relate to the significant issues with respect to which the letter ruling is requested. See section 6.03(4).

355 Checklist questionnaire

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

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

See section 3.01 of Rev. Proc. 2018-3, this Bulletin, which states that the Service will not issue a letter ruling as to whether a transaction constitutes a reorganization, including a recapitalization within the meaning of § 368(a)(1)(E) (or a transaction that qualifies under § 1036). However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01 of Rev. Proc. 2018-3) presented in a transaction described in § 368(a)(1)(E) (or in a transaction described in § 1036). The information and representations described in Rev. Proc. 81-60, 1981-2 C.B. 680, should be included in a letter ruling request only to the extent that they relate to the significant issues. See section 6.03(4).

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

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

412(d) Minimum funding standards

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

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

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

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

Rev. Proc. 94-42, 1994-1 C.B. 717, as modified by Rev. Proc. 2018-4 sets forth procedures under which a plan sponsor may file notice with and obtain approval for a retroactive amendment described in § 412(d)(2) (formerly § 412(c)(8)) and § 302(d)(2) of the Employee Retirement Income Security Act of 1974 (ERISA) that reduces prior accrued benefits.

414(e) Church plans

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

414(r) Qualified separate lines of business - administrative scrutiny 461(h) Alternative method for the inclusion of common improvement costs in basis

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

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

482

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

Advance pricing agreements

521

Rev. Proc. 2017-5, this Bulletin.

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

letter rulings and determination letters

817(h)

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

Closing agreement for inadvertent failures of variable contracts

860 Self Determination of

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

Deficiency Dividend

877, 2107, and 2501(a)(3) Individuals who lose

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

U.S. citizenship or cease to be taxed as long-term U.S. residents with a principal purpose to avoid U.S. taxes

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

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

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

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

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

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

1.1502-75(b)

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

Consent to Be Included in a

Consolidated Income Tax Return

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

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

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

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

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

2642
Allocations of generation-
skipping transfer tax
exemption

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

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

7701

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

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

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

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

301.9100-3
Extension of time to make
entity classification election

7702

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

7702
Closing agreement for failed
life insurance contracts

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

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

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

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

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

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

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

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

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

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

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

7702A

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

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

7704(g) Revocation of election

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

SUBJECT MATTERS

REVENUE PROCEDURE

Accounting periods; changes in period

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

Classification of liquidating trusts

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

Earnings and profits determinations

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

Estate, gift, and generation- skipping transfer tax issues

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

Intercompany transactions; election not to defer gain or loss

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

Leveraged leasing

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

Rate orders; regulatory agency; normalization

A letter ruling request that involves a question of whether a rate order that is proposed or issued by a regulatory agency will meet the normalization requirements of § 168(f)(2) (pre-Tax Reform Act of 1986, § 168(e)(3)) and former §§ 46(f) and 167(l) ordinarily will not be considered unless the taxpayer states in the letter ruling request whether-

(1) the regulatory authority responsible for establishing or approving the taxpayer's rates has reviewed the request and believes that the request is adequate and complete; and (2) the taxpayer will permit the regulatory authority to participate in any Associate office conference concerning the request.

If the taxpayer or the regulatory authority informs a consumer advocate of the request for a letter ruling and the advocate wishes to communicate with the Service regarding the request, any such communication should be sent to: Internal Revenue Service, Associate Chief Counsel (Procedure and Administration), Attn: CC:PA:LPD:DRU, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044 (or, if a private delivery service is used: Internal Revenue Service, Associate Chief Counsel (Procedure and Administration), Attn: CC:PA:LPD:DRU, Room 5336, 1111 Constitution Ave., NW, Washington, DC 20224). These communications will be treated as third party contacts for purposes of § 6110.

Unfunded deferred compensation

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

Safe harbor revenue procedures

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

CODE OR REGULATION SECTION

REVENUE PROCEDURE

23 and 36C Adoption credit for foreign adoptions

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

103 and 141-150 Issuance of state or local obligations

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

Rev. Proc. 2005-62, 2005-2 C.B. 507.

Utility Cost Recovery Securitization Transactions

137 Exclusion for Employer Reimbursements

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

162 Restaurant Small Wares Costs

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

165

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

Losses from corrosive drywall

165 Theft losses from fraudulent investment arrangements

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

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

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

168

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

Depreciation of original and replacement tires for certain vehicles

168

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

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

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

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

263, 471

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

Treatment of rotable spare parts as inventory or depreciable property

263 Safe harbor methods for track structure expenditures

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

263

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

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

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

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

263

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

Allocating success-based fees paid in business acquisitions or reorganizations

263 Electric trade and distribution property assets

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

263A Safe harbor methods for certain motor vehicle dealerships

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

280A

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

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

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

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

446 Film producer's treatment of certain creative property costs

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

446 Bank's treatment of uncollected interest

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

448 Nonaccrual-experience method - book safe harbor method

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

451 Safe harbor for capital cost reduction payments

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

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

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

451
Rev. Proc. 2011-56, 2011-49 I.R.B. 834.

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

461

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

Safe harbor method for payroll tax liabilities for compensation

471

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

Estimating inventory shrinkage

471

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

Valuation of automobile dealer vehicle parts inventory

471

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

Valuation of remanufactured cores

471

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

Valuation of heavy equipment dealer parts inventory

471

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

Rolling-average method of accounting for inventories

475

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

Eligible positions

584(a)

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

Qualification of a proposed common trust fund plan

642(c)(5)

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

Qualification of trusts as pooled income funds

664

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

Charitable remainder trusts

664(d)(1)

Rev. Proc. 2003-53, 2003-2 C.B. 230; Rev. Proc. 2003-54, 2003-2 C.B. 236; Rev. Proc.

Qualification of trusts as charitable remainder annuity trusts

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

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

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

832

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

Insurance company premium acquisition expenses

856(c)

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

Certain loans treated as real estate assets

1031(a)

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

Qualification as a qualified exchange accommodation arrangement

1031

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

Safe harbor with respect to exchanges of residential real property

1031

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

Safe harbor for reporting gain or loss on failed exchanges

1272(a)(6)

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

Proportional method of accounting for original issue discount on pools of credit card receivables

1286

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

Determination of reasonable compensation under mortgage servicing contracts

1362(f)

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

Automatic inadvertent termination relief to certain corporations

2056A

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

Qualified Domestic Trust

2702(a)(3)(A) and 25.2702-5(c) Qualified Personal Residence Trust

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

4051(a)(2)

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

Imposition of tax on heavy trucks and trailers sold at retail

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

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

SUBJECT MATTERS

REVENUE PROCEDURE

Certain rent-to-own contracts treated as leases

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

Automatic change in accounting period revenue

.03 For requests for an automatic change in accounting period, refer to the following automatic change revenue procedures.

procedures

Rev. Proc. 2006-45, 2006-2 C.B. 851, as clarified and modified by Rev. Proc. 2007-64, 2007-2 C.B. 818 (certain corporations); Rev. Proc. 2006-46, 2006-2 C.B. 859 (certain partnerships, subchapter S corporations, personal service corporations, and trusts); and Rev. Proc. 2003-62, 2003-2 C.B. 299 (individuals seeking a calendar year);

The Commissioner's consent to an otherwise qualifying automatic change in accounting period is
granted only if the taxpayer timely complies with the applicable automatic change revenue procedure.

26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.

## Rev. Proc. 2018-2

TABLE OF CONTENTS

SECTION 1. PURPOSE AND AUTHORITY

108

.01 Description of purpose

108

.02 Updated annually

108

SECTION 2. DEFINITIONS

108

.01 Operating division

108

.02 Director

108

.03 Appeals officer

109

.04 Taxpayer

109

.05 Associate office

109

.06 Field office

109

.07 Field counsel

109

SECTION 3. THE NATURE OF TECHNICAL ADVICE

109

.01 When advice furnished

109

.02 TAM may be requested even if previous TAM on same matter was issued

109

.03 Taxpayer participation

109

.04 Areas of mandatory technical advice on employee plans matters.

110

.05 Basis for requests by Exempt Organizations Rulings &amp; Agreements

110

SECTION 4. TYPES OF ISSUES NOT SUBJECT TO THIS PROCEDURE

110

.01 Alcohol, tobacco, and firearms taxes

110

.02 Employment status determinations

110

.03 Issues under § 301.9100

110

.04 Frivolous issues

110

.05 Issues in a docketed case

110

.06 Collection issues

111

.07 Request for relief under § 7805(b) relating to matters handled by TEGE

111

SECTION 5. INITIATING A REQUEST FOR TECHNICAL ADVICE

111

.01 Initiating a request for technical advice

111

.02 Taxpayer may request referral for technical advice

111

.03 Appeal of field office denial of TAM referral request

111

.04 The decision of the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations may be reviewed but not appealed

112

SECTION 6. PRE-SUBMISSION CONFERENCES

112

.01 Purpose

112

.02 Pre-submission conferences are mandatory

112

.03 Actions before a pre-submission conference

112

.04 Initiating a pre-submission conference

113

.05 Manner of transmitting pre-submission materials

113

.06 Scheduling the pre-submission conference

113

.07 Pre-submission conferences may be conducted in person

114

.08 Pre-submission conference may not be taped

114

.09 Discussion of substantive issues is not binding on the Service

114

.10 New issues may be raised at pre-submission conference

114

.11 Power of attorney

114

SECTION 7. SUBMITTING THE REQUEST FOR TECHNICAL ADVICE

114

.01 Memorandum of issues, facts, law, and arguments

114

.02 Transaction involving multiple taxpayers

115

.03 Foreign laws and documents: submission of relevant foreign laws and documents in the official language and in English

115

.04 Statement regarding interpretation of relevant income tax or estate tax treaty

115

.05 Statement recommending information to be deleted from public inspection

116

.06 Preparation of the memorandum; resolution of disagreements

116

.07 Transmittal Form 4463, Request for Technical Advice

117

.08 All supporting and additional documents

117

.09 Number of copies of request to be submitted

118

SECTION 8. INITIAL PROCESSING OF THE REQUEST FOR TECHNICAL ADVICE BY THE ASSOCIATE OFFICE

118

.01 Assignment and initial review by Associate office attorney

118

.02 Other forms of guidance

118

.03 Initial acknowledgment and processing

118

.04 Deficiencies in request leading to return

118

.05 Initial discussion

119

.06 If additional information requested

119

.07 Taxpayer request for extension of time to submit additional information

119

.08 Where to send additional information

119

.09 Tentative conclusions

119

SECTION 9. TAXPAYER CONFERENCES

120

.01 Notification of conference

120

.02 Scheduling conference

120

.03 Taxpayer may request extensions

120

.04 One conference of right

120

.05 Additional conferences may be offered

120

.06 Additional information submitted after the conference

121

.07 Normally conducted in person

121

.08 Service makes only tentative recommendations

121

.09 Conference may not be taped

121

SECTION 10. PREPARATION OF THE TECHNICAL ADVICE

121

.01 Reply consists of two parts

121

.02 Status of a request

122

.03 Opportunity for field counsel review

122

.04 Copy of preliminary TAM to field office and field counsel

122

.05 Routing of reply

122

.06 Copy of final TAM to field counsel and Division Counsel

122

.07 Reconsideration

122

.08 Discussing contents with the taxpayer.

122

.09 Section 6110

122

.10 TAM takes effect when taxpayer receives a copy

123

.11 Taxpayer may protest deletions not made

123

.12 Public inspection in civil fraud or criminal investigation cases

123

SECTION 11. WITHDRAWAL OF REQUESTS FOR TECHNICAL ADVICE

123

.01 Taxpayer notified

123

.02 Acknowledgment of withdrawal

124

.03 Associate office may decide not to provide a TAM

124

.04 Associate office may provide views

124

SECTION 12. USE OF THE TECHNICAL ADVICE

124

.01 Service generally applies advice in processing taxpayer's case

124

SECTION 13. RETROACTIVITY AND RELIANCE

124

.01 Usually applies retroactively

124

.02 Revocation or modification of an earlier letter ruling or TAM

124

.03 Continuing action or series of actions

125

.04 Other taxpayers

125

SECTION 14. HOW MAY RETROACTIVE EFFECT BE LIMITED?

125

.01 Request for relief under § 7805(b)

125

.02 Form of request for relief-in general

125

.03 Form of request for relief-continuing transaction before examination of return

126

.04 Taxpayer's right to a conference

126

.05 Reconsideration of request for relief under § 7805(b)

126

SECTION 15. SIGNIFICANT CHANGES MADE TO REV. PROC. 2017-2

126

SECTION 16. EFFECT ON OTHER DOCUMENTS

126

SECTION 17. EFFECTIVE DATE.

126

DRAFTING INFORMATION

126

INDEX

128

## SECTION 1. PURPOSE AND AUTHORITY

Description of purpose

.01 Technical advice. This revenue procedure explains when and how an Associate office provides technical advice, conveyed in a technical advice memorandum (TAM). It also explains the rights that a taxpayer has when a field office requests a TAM regarding a tax matter. Rev. Proc. 2017-2 superseded.

Updated annually

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

SECTION 2. DEFINITIONS

Operating division Director

.01 The term "operating division" means (1) the Large Business &amp; International Division (LB&amp;I); (2) the Small Business/Self-Employed Division (SB/SE); (3) the Wage and Investment Division (W&amp;I); and (4) the Tax Exempt and Government Entities Division (TE/GE). .02 The term "Director" means (1) the Director, Field Operations (LB&amp;I) for the taxpayer's practice area; (2) a Territory Manager, Field Compliance (SB/SE); (3) the Director, Return Integrity &amp; Compliance Services (W&amp;I); (4) the Director, International Compliance, Strategy and Policy; (5) the Director, Employee Plans Examinations; (6) the Director, Employee Plans Rulings &amp; Agreements; (7) the Director, Exempt Organizations Examinations; (8) the Director, Exempt Organizations Rulings &amp; Agreements; (9) the Director, Indian Tribal Governments and Tax Exempt Bonds; (10) the Appeals Area Director; (11) the Appeals Director, Technical Guidance; (12) the Appeals Director, International Operations; or (13) any official to whom the authority normally exercised by a Director has properly been delegated.

Appeals officer

.03 The term "Appeals officer" means the Appeals officer assigned to the taxpayer's case and can include an Appeals Team Case Leader or settlement officer.

Taxpayer

.04 The term "taxpayer" means any person subject to any provision of the Internal Revenue Code, including an issuer of obligations the interest on which is excluded from gross income under § 103, and issuers of other bonds that provide a tax subsidy.

Associate office

.05 The term "Associate office" means (1) the Office of Associate Chief Counsel (Corporate); (2) the Office of Associate Chief Counsel (Financial Institutions and Products); (3) the Office of Associate Chief Counsel (Income Tax and Accounting); (4) the Office of Associate Chief Counsel (International); (5) the Office of Associate Chief Counsel (Passthroughs and Special Industries); (6) the Office of Associate Chief Counsel (Procedure and Administration); or (7) the Office of Associate Chief Counsel (Tax Exempt and Government Entities).

Field office

.06 The term "field office" means personnel in any examination or Appeals office. For qualified retirement plan and exempt organizations matters, the term "field office" also means personnel in any Rulings &amp; Agreements office.

Field counsel SECTION 3. THE NATURE OF TECHNICAL ADVICE

.07 The term "field counsel" means any attorney assigned to the Division Counsel for an operating division who is not a member of Division Counsel Headquarters.

When advice furnished

.01 Technical advice is advice furnished by an Associate office in a memorandum that responds to any request, submitted under this revenue procedure, for assistance on any technical or procedural question that develops during any proceeding before the Internal Revenue Service (Service). The field office may request a TAM when the application of the law to the facts involved is unclear. The question must be on the interpretation and proper application of any legal authority, including legislation, tax treaties, court decisions, regulations, notices, revenue rulings, revenue procedures, or announcements to a specific set of facts that concerns the treatment of an item in a tax period under examination or in Appeals. A TAM may not be requested for prospective or hypothetical transactions (except for certain TAMs in connection with a taxpayer's request for a determination letter on a matter within the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, pursuant to Rev. Proc. 2018-4 or 2018-5). Proceed- ings before the Service include: (1) the examination of a taxpayer's return; (2) the consideration of a taxpayer's claim for credit or refund; (3) any matter under examination or in Appeals pertaining to tax-exempt bonds, tax credit bonds, or mortgage credit certificates; and (4) any other matter involving a specific taxpayer under the jurisdiction of a Director. Technical advice does not include any oral legal advice or any written legal advice furnished to the field office that is not submitted and processed under this revenue procedure.

TAM may be requested even if previous TAM on same matter was issued

.02 The field office may request a TAM on an issue in any tax period, even if a TAM was requested and furnished for the same or similar issue for another tax period. The field office may also request a TAM on an issue even if Appeals disposed of the same or similar issue for another tax period of the same taxpayer.

Taxpayer participation

.03 Taxpayers will be afforded an opportunity to participate in the technical advice process. Taxpayer participation is preferred but not required in order to process a TAM. A taxpayer's failure to participate in stages identified as "material," however, will constitute waiver of the taxpayer's right to the taxpayer conference described in section 9.

Areas of mandatory technical advice on employee plans matters

Under no circumstances will a taxpayer be treated as having waived its right to see the issued TAM or having waived its rights regarding disclosure and deletions described in section 10.

.04 Regarding qualified retirement plan matters, a request for a TAM is required in cases concerning (1) proposed adverse letters or proposed revocation letters on collectively bargained plans or (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. No. 93-406, 1974-3 C.B. 1, 43 as amended (ERISA).

Basis for requests by Exempt Organizations Rulings &amp; Agreements

.05 The circumstances in which Exempt Organizations Determinations should seek technical advice in the course of processing applications for tax exemption are described in Rev. Proc. 2018-5, this Bulletin, section 3.03. Technical advice may also be requested by Exempt Organi- zations Determinations in connection with requests for determination letters where no pending application for tax exemption is involved. A request for a TAM is not required if the Director, Exempt Organizations Examinations proposes to revoke or modify a letter recognizing tax- exempt status issued by the Service.

SECTION 4. TYPES OF ISSUES NOT SUBJECT TO THIS PROCEDURE

Alcohol, tobacco, and firearms taxes

.01 The procedures for obtaining technical advice that apply to Federal alcohol, tobacco, and firearms taxes under subtitle E of the Code are under the jurisdiction of the Alcohol and Tobacco Tax and Trade Bureau of the Department of the Treasury.

Employment status determinations

.02 Employment status determination letters issued pursuant to section 12.04 of Rev. Proc. 2018-1, of this Bulletin, are not subject to technical advice procedures.

Issues under § 301.9100

.03 A request for an extension of time for making an election or other application for relief under § 301.9100-3 of the Procedure and Administration Regulations is not submitted as a request for technical advice. Instead, the request must be submitted as a request for a letter ruling, even if submitted after the examination of the taxpayer's return has begun or after the issues in the return are being considered in Appeals or a federal court. Therefore, a request under § 301.9100 should be submitted under Rev. Proc. 2018-1, of this Bulletin, and the payment of the applicable user fee is determined under Appendix A of Rev. Proc. 2018-1. However, a request under § 301.9100 related to recharacterization of a Roth IRA should be submitted under Rev. Proc. 2018-4 of this Bulletin. Requests for relief pertaining to exemption application matters involving §§ 505(c) and 508 are considered in the determination letter process under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. See Revenue Procedure 2018-5, this Bulletin.

Frivolous issues

.04 Associate offices will not issue a TAM on frivolous issues. The field office will deny a taxpayer's request that it consider requesting technical advice if the taxpayer's request involves frivolous issues. For purposes of this revenue procedure, a "frivolous issue" is one without basis in fact or law or one that asserts a position that courts have held frivolous or groundless. Examples of frivolous or groundless issues may be found in Service publications and other guidance (including, but not limited to, section 6.10 of Rev. Proc. 2018-1, Notice 2010-33, and Exhibit 25.25.10-1, Frivolous Arguments).

Issues in a docketed case

.05 Associate offices will not issue 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

Sec. 3.04 January 2, 2018

110 Bulletin No. 2018-1

Collection issues

of which the taxpayer is also a member within the meaning of § 1504) is in a docketed case for any taxable year. 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 Associate office may issue the TAM only if the appropriate Appeals officer and field counsel agree, by memorandum, to the issuance of the TAM.

.06 The Associate Chief Counsel (Procedure and Administration) will not issue technical advice on matters arising under the Internal Revenue Code and related statutes and regulations that involve the collection of taxes (including interest and penalties). With respect to such matters, the Associate Chief Counsel (Procedure and Administration) may issue alternative forms of advice.

Request for relief under § 7805(b) relating to matters handled by TEGE

.07 Requests for relief under § 7805(b) relating to the revocation or modification of determi- nation letters or letter rulings issued by TE/GE are handled in accordance with the procedures in sections 23 and 29 of Rev. Proc. 2018-4, and section 12 of Rev. Proc. 2018-5, this Bulletin.

SECTION 5. INITIATING A REQUEST FOR TECHNICAL ADVICE

Initiating a request for technical advice

.01 Because technical advice is issued to assist field offices, it is the field office that determines whether to request it. In determining whether to request technical advice, the field office should consider whether other forms of guidance, e.g., published guidance, generic advice, or some other form of advice, would be more appropriate. Additionally, before requesting technical advice, the field office must request assistance and a recommendation from field counsel. If the field office disagrees with field counsel's recommendation, the field office must seek reconciliation with field counsel through their respective supervisors. A field office's request for technical advice must be approved in writing by a Director. If technical advice is requested from the Associate Chief Counsel (Tax Exempt and Government Entities) for a case with either an unagreed prohibited transaction, as defined in § 4975(c)(1) and ERISA § 406(a), or a violation of the exclusive benefit rule of § 401(a)(2) or ERISA § 404(a)(1)(A), a Form 6212-B must be submitted to the Department of Labor prior to submitting the request for technical advice.

Taxpayer may request referral for technical advice

.02 While a case is under the jurisdiction of a Director, a taxpayer may request that the field office refer an issue to the Associate office for technical advice. The taxpayer's request may be oral or written and should be directed to the field office. If the field office decides that a taxpayer's request for referral of an issue to the Associate office for a TAM is unwarranted, the field office will notify the taxpayer. A taxpayer's request for referral of an issue for technical advice will not be denied merely because the Associate office has already provided legal advice other than a TAM to the field office on the matter.

Appeal of field office denial of TAM referral request

.03 The taxpayer may appeal the field office's denial of the taxpayer's request for referral by submitting to the field office, within 30 calendar days after notification that the request was denied, a written statement of the reasons why the matter should be referred to the Associate office. The statement should include a description of all pertinent facts (including any facts in dispute); a statement of the issue that the taxpayer would like to have addressed; a discussion of any relevant legal authority, including legislation, tax treaties, court decisions, regulations, notices, revenue rulings, revenue procedures, or announcements; and an explanation of the taxpayer's position and the need for technical advice. Any extensions of the 30-day period must be requested in writing and must be approved by the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations. Decisions on any extensions by the Director, the LB&amp;I Territory Manager, or in the case of Tax Exempt Bonds, the Manager, Field Operations, are final and may not be appealed.

Upon receipt, the field office will refer the taxpayer's written statement, along with the field
office's statement of why the issue should not be referred to the Associate office for technical
advice, to the Director, the LB&I Territory Manager, or in the case of Tax Exempt Bonds, the
Manager, Field Operations, for decision. The Director, the LB&I Territory Manager, or in
the case of Tax Exempt Bonds, the Manager, Field Operations, will determine whether the issue
should be referred for technical advice on the basis of the statements of the field office and the
taxpayer. No conference will be held with the taxpayer or the taxpayer's representative. If the
Director, the LB&I Territory Manager, or in the case of Tax Exempt Bonds, the Manager, Field
Operations, determines that a TAM is not warranted, the taxpayer will be informed in writing of
the proposed denial of the request and the reasons for the denial (unless doing so would prejudice
the Government's interests).

The decision of the
Director, the LB&I
Territory Manager, or the
Tax Exempt Bonds
Manager, Field Operations
may be reviewed but not
appealed

.04 The taxpayer may not appeal the decision of the Director, the LB&I Territory Manager, or
in the case of Tax Exempt Bonds, the Manager, Field Operations, not to request a TAM. If the
taxpayer does not agree with the proposed denial, all data on the issue for which a TAM has been
sought, including the taxpayer's written request and statements, will be submitted for review to
the Director, LB&I; the Director, Examination, SB/SE; the Director, Specialty Tax, SB/SE; the
Director, Return Integrity & Compliance Services, W&I; the Director, Indian Tribal Governments
and Tax Exempt Bonds; the Appeals Director, Policy; or the Commissioner, Tax Exempt and
Government Entities Division (who will review the proposed denial through the Director,
Employee Plans; the Director, Exempt Organizations; or, if appropriate, the Appeals Director,
Policy). Review of the proposed denial will be based solely on the written record. No conference
will be held with the taxpayer or the taxpayer's representative. The person responsible for review
may consult with the Associate office, if appropriate, and will notify the field office whether the
proposed denial of the taxpayer's request is approved or denied within 45 days of receiving all
information. The field office will then notify the taxpayer. While the matter is under review, the
field office will suspend any final decision on the issue (except when the delay would prejudice
the Government's interests). If the request for technical advice has been denied because the issue
is frivolous as described in section 4.04 of this revenue procedure, this review process is not
available.

# SECTION 6. PRE- SUBMISSION CONFERENCES

Purpose

.01 A pre-submission conference helps the field office, field counsel, the taxpayer, and the Associate office agree on the appropriate scope of the request for technical advice and the factual information and documents that must be included in the request. A pre-submission conference is not an alternative procedure for addressing the merits of the substantive positions advanced by the field office or by the taxpayer. During the pre-submission conference, the parties should discuss the framing of the issues and the background information and documents that should be included in the formal submission of the request for technical advice.

Pre-submission conferences are mandatory

.02 Pre-submission conferences are mandatory because they promote expeditious processing of requests for technical advice. If a request for technical advice is submitted without first holding a pre-submission conference, the Associate office will return the request for advice. Pre- submission conferences include the taxpayer and representatives from the field office, field counsel, and the Associate office. Requests for technical advice can proceed, however, even if a taxpayer declines to participate in a pre-submission conference.

Actions before a pre- submission conference

.03 Before requesting a pre-submission conference, the field office and the taxpayer must exchange proposed statements of the pertinent facts and issues. The proposed statements should include any facts in dispute, the issues that the parties intend to discuss, any legal analysis and supporting authorities, and any other background information that the parties believe would

Sec. 5.04
January 2, 2018

facilitate the Associate office's understanding of the issues to be discussed during the conference.
Prior to the scheduled pre-submission conference, the field office and the taxpayer must submit
to the Associate office their respective statements of pertinent facts and issues. The legal analysis
provided in the parties' statements should be sufficient to enable the Associate office to be
reasonably informed about the subject matter. Failure of the taxpayer to provide a statement of
pertinent issues and facts shall not be allowed to unduly delay the scheduling of the pre-
submission conference. If it is not provided within a reasonable period of time, the conference
may be scheduled without the taxpayer's statements.

The field office or the taxpayer must ensure that the Associate office receives a copy of any
required power of attorney. Form 2848, Power of Attorney and Declaration of Representative,
should be used.

Pre-submission materials include the field office and taxpayer's statements (discussed above) and
any required power of attorney for the taxpayer. The assigned Associate office must receive the
pre-submission materials at least 10 business days before the conference is to be held.

Initiating a pre-submission
conference

.04 A request for a pre-submission conference must be submitted in writing by the field office,
with the assistance of field counsel. The request should identify the Associate office expected to
have jurisdiction over the request for a TAM and should include a brief explanation of the primary
issue so that an assignment within the appropriate Associate office can be made. If the request is
submitted by Appeals, field counsel assignments will be subject to the ex parte rules set forth in
section 1001(a)(4) of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub.
L. No. 105-206, and Rev. Proc. 2012-18, 2012-10 I.R.B. 455. If the request involves an issue
under the office of the Director, Abusive Tax Avoidance Transactions (ATAT) Examination,
SB/SE, an issue under the Office of Tax Shelter Analysis (OTSA), LB&I, then the field office and
field counsel should coordinate with LB&I Division Counsel headquarters. If the request is from
Appeals and involves a coordinated issue or emerging issue under Appeals Technical Guidance
or International Operations or Appeals Coordinated Issue (ACI) Program, the Appeals officer
must coordinate with the Appeals Technical Guidance or International Operations Technical
Specialist.

Manner of transmitting
pre-submission materials

.05 The request for a pre-submission conference and pre-submission materials should be
electronically transmitted by field counsel to the Technical Services Support Branch (TSS4510).
TSS4510 will ensure delivery of the pre-submission materials to the appropriate Associate office.
The TSS4510 email box cannot accept encrypted mail.

If documents are not electronically available, or if documents cannot reasonably be transmitted
electronically, the request for a pre-submission conference and pre-submission materials may be
sent by fax to TSS4510 at 855-592-8976 or by express mail or private delivery service to the
following address to avoid any delays in regular mail:

Internal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Avenue, NW
Washington, DC 20224

Scheduling the pre-
submission conference

.06 After the pre-submission materials have been received, the Associate office responsible for
conducting the pre-submission conference will contact the taxpayer, the field office, and field
counsel to arrange a mutually convenient time for the parties to participate in the conference. The
conference generally should be held within 15, but not more than 30, calendar days after the field
office is contacted.

Sec. 6.04
January 2, 2018

Pre-submission conferences may be conducted in person

.07 Although pre-submission conferences are generally conducted by telephone, the parties may choose to conduct the conference in person.

Pre-submission conference may not be taped

.08 No tape, stenographic, or other verbatim recording of a conference may be made by any party.

. Discussion of substantive issues is not binding on the Service

.09 Any discussion of substantive issues at a pre-submission conference is advisory only, is not binding on the Service in general or on the Office of Chief Counsel in particular, and cannot be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).

New issues may be raised at pre-submission conference

.10 During the pre-submission conference, the Associate office may raise new issues in addition to those submitted by the field office and the taxpayer.

Power of attorney

.11 Form 2848, Power of Attorney and Declaration of Representative, should be used to provide the representative's authority (Part I of Form 2848, Power of Attorney) and the represe- ntative's qualification (Part II of Form 2848, Declaration of Representative). The name of the person signing Part I of Form 2848 should also be typed or printed on this form. A stamped signature is not permitted. An original, a copy, or fax of the power of attorney is acceptable so long as its authenticity is not reasonably disputed. The taxpayer's authorized representative, as described in section 7.01(13) of Rev. Proc. 2018-1, whether or not enrolled, must comply with Treasury Department Circular No. 230, which provides the rules for practice before the Service. In situations where the Service believes that the taxpayer's representative is not in compliance with Circular 230, the Service will bring the matter to the attention of the Office of Professional Responsibility.

# SECTION 7. SUBMITTING THE REQUEST FOR TECHNICAL ADVICE

Memorandum of issues,
facts, law, and arguments

.01 The field office submits the request for technical advice. Every request for technical advice
must include a memorandum that describes the facts, issues, applicable law, and arguments
supporting the taxpayer's position on the issues and the field office's position on the issues. The
field office will prepare this statement with the assistance of field counsel. The memorandum must
include a statement of all the facts and the issues. If the taxpayer and the field office disagree
about ultimate findings of fact or about the relevance of facts, all of the facts should be included
with an explanation that highlights the areas of disagreement. The memorandum must include an
explanation of the taxpayer's position, discussing any relevant legal authority, including legis-
lation, tax treaties, court decisions, regulations, notices, revenue rulings, revenue procedures, or
announcements supporting the taxpayer's position. The memorandum must also include a similar
explanation of the field office's position. Both the field office and the taxpayer should comment
on any relevant legal authority contrary to their respective positions. If either party determines
that there are no authorities contrary to its position, that statement should be noted in the
memorandum.

When the field office initiates a request for technical advice, the field office should notify the
taxpayer that it is requesting technical advice and provide the taxpayer with a copy of the
arguments supporting the field office's position. The taxpayer has 10 calendar days to state, in
writing, any factual disagreement. The field office will make every effort to reach agreement on
the facts and specific points at issue. The taxpayer is encouraged to submit a written statement

with an explanation of the taxpayer's position, including a discussion of any relevant legal authority.

Transaction involving multiple taxpayers

.02 If the subject matter of the request involves a transaction among multiple taxpayers, the field office may submit a request for a single TAM, but only if each taxpayer agrees to participate in the process, including the furnishing of Forms 8821, Tax Information Authorization, or other written disclosure consent, as appropriate.

Foreign laws and documents: submission of relevant foreign laws and documents in the official language and in English

.03 If applicable, the request for technical advice must include a copy of the relevant parts of all foreign laws, including statutes, regulations, administrative pronouncements, and any other relevant legal authority. The documents submitted must be in the official language of the country involved and must be copied from an official publication of the foreign government or another widely available and generally accepted publication. If English is not the official language of the country involved, the submission must also include a copy of an English language version of the relevant parts of all foreign laws. This translation must be: (i) from an official publication of the foreign government or another widely available, generally accepted publication; or (ii) a certified English translation submitted in accordance with paragraph (2) of this section 7.03. The taxpayer or the field office must identify the title and date of publication, including updates, of any widely available and generally accepted publication used as a source for the relevant parts of the foreign law. The taxpayer and the field office must inform the Associate office of the implications of any authority believed to interpret the foreign law, such as pending legislation, treaties, court decisions, notices, and administrative decisions. (1) If the interpretation of a foreign law or foreign document is a material component of the request for technical advice, the Associate office, at its discretion, may refuse to provide a TAM. The interpretation of a foreign law or foreign document means making a judgment about the import or effect of the foreign law or document that goes beyond its plain meaning. This section applies whether or not the field office and the taxpayer dispute the interpretation of a foreign law or foreign document. (2) If applicable, a request for technical advice must include an accurate and complete certified English translation of the relevant parts of all contracts, wills, deeds, agreements, instruments, trust documents, proposed disclaimers, and other documents pertinent to the request that are in a language other than English. If the taxpayer or the field office chooses to submit certified English translations of foreign laws, those translations must be based on an official publication of the foreign government or another widely available and generally accepted publication. In either case, the translation must be that of a qualified translator and must be attested to by the translator. The attestation must contain: (i) a statement that the translation submitted is a true and accurate translation of the foreign language document or law; (ii) a statement as to the attestant's qualifications as a translator and as to that attestant's qualifications and knowledge regarding tax matters or foreign law if the law is not a tax law; and (iii) the attestant's name and address.

Statement regarding interpretation of relevant income tax or estate tax treaty

.04 A request for technical advice involving the interpretation of a substantive provision of a relevant income tax or estate tax treaty must include a written statement addressing whether: (1) the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue for the taxpayer, a related taxpayer (within the meaning of § 267 or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504 (related taxpayer)), or any predecessor; (2) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor, is being examined, or has been settled, by the tax authority of the treaty jurisdiction or is otherwise the subject of a closing agreement in that jurisdiction; and (3) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor, is being considered by the competent authority of the treaty jurisdiction.

Statement recommending
information to be deleted
from public inspection

.05 Except as provided below, every request for technical advice must separately include a
statement of proposed deletions from public inspection (deletion statement). The text of TAMs
and background file documents are open to public inspection under § 6110(a). The Service deletes
certain information from the text before it is made available to the public in order to protect the
privacy of taxpayers. To help the Service make the necessary deletions, the taxpayer must provide
a deletion statement indicating the deletions desired. A taxpayer who wants only names,
addresses, and identifying numbers deleted should state this in the deletion statement. A taxpayer
who wants more information deleted must provide a copy of the TAM request and supporting
documents on which the taxpayer has placed brackets around the material to be deleted plus a
deletion statement indicating the statutory basis under § 6110(c) for each proposed deletion. The
deletion statement is not to be included in the memorandum described in section 7.01 of this
revenue procedure. Instead, the deletion statement is to be made in a separate document that is
signed and dated by the taxpayer or the taxpayer's authorized representative. A stamped signature
or faxed signature is not permitted. If the deletion statement is not submitted, the taxpayer will
be notified and advised by the field office that the deletion statement is required and that failure
to provide a deletion statement will be interpreted by the field office, field counsel, and Associate
office to mean that the taxpayer only wants names, addresses, and identifying numbers deleted.
If the deletion statement is not received within 10 calendar days after the notification, the field
office will notify the Associate office that the taxpayer has not provided a deletion statement and
will advise the Associate office of any information in addition to names, addresses, and
identifying numbers, that should be deleted pursuant to § 6110(c). The taxpayer should follow this
same process to propose deletions from any additional information submitted after the initial
request for a TAM. An additional deletion statement is not required with each submission of
additional information if the taxpayer's initial deletion statement requests that only names,
addresses, and identifying numbers are to be deleted and the taxpayer wants only the same
information deleted from the additional information. The above deletion statement requirements
do not apply to the extent that the TAM is open to public inspection under § 6104. Section
6104(a)(1)(A) generally provides that if an organization described in § 501(c) or § 501(d) is
exempt from taxation under § 501(a) or a political organization is exempt from taxation under
§ 527, the application for exemption under § 501(a) that the organization filed or the notice of
status filed by a political organization pursuant to § 527(i) is open for public inspection as
prescribed by regulations. Generally, § 6104(a)(1)(B) provides that: (1) an application filed with
respect to 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, (3) any
papers submitted in support of an application referred to in (1) or (2) above, and (4) any letter or
other document issued by the Internal Revenue Service and dealing with the qualification referred
to in (1) or the exemption from tax referred to in (2).

Preparation of the
memorandum; resolution
of disagreements

.06 The field office prepares the memorandum described in section 7.01 of this revenue
procedure with the assistance of field counsel and sends it to the taxpayer by mail or fax
transmission. The taxpayer then will have 10 calendar days from the date of mailing or fax
transmission to respond by providing a written statement specifying any disagreement on the facts
and issues. A taxpayer who needs more than 10 calendar days must submit a written request for
an extension of time, subject to the approval of the field office. The field office will make a
determination on the request for extension as soon as reasonably possible. The request for
extension will be considered denied unless the field office informs the taxpayer otherwise. The
decision of the field office on whether to approve an extension, and the length of any extension
granted, is final and may not be appealed. After the taxpayer's response is received by the field
office, the parties will have 10 calendar days to resolve remaining disagreements. If all disagree-
ments about the statement of facts and issues are resolved, then the field office will prepare a
single statement of those agreed facts and issues.

If disagreements continue, both the taxpayer's set of facts and issues and the field's set of facts
and issues will be forwarded to the Associate office. The field office, with the assistance of field

counsel, will prepare a memorandum for the Associate office highlighting the material factual
differences, and provide a copy to the taxpayer for review. The taxpayer may respond in writing
to the memorandum highlighting material factual differences. The field office may revise the
memorandum described in section 7.01 of this revenue procedure in response to the taxpayer's
comments. This memorandum will be forwarded with the initial request for technical advice.

The taxpayer's statement of facts and issues must be accompanied by the following declaration:
"Under penalties of perjury, I declare that I have examined this information, including accom-
panying documents, and, to the best of my knowledge and belief, the information contains all the
relevant facts relating to the request for technical advice, and such facts are true, correct, and
complete." This declaration must be signed in accordance with the requirements in section
7.01(15)(b) of Rev. Proc. 2018-1. The field office must submit this declaration with the initial
request for technical advice. If no agreement regarding the facts is reached, the Associate office
may rely on the facts presented by the field office.

The field office will offer the taxpayer an opportunity to participate in the development of the
request for technical advice. If the taxpayer participates in the process, the field office will
continue to offer the taxpayer the opportunity to participate. If the taxpayer does not participate
in a material stage of the process after being offered an opportunity, the Associate office will
nonetheless process the request, and the taxpayer will have waived the right to participate in the
development and issuance of the TAM, including the right to the taxpayer conference described
in section 9. A taxpayer's failure to participate in the development of the memorandum described
in section 7.01 of this revenue procedure will be considered a failure to participate in a material
stage of the TAM process.

Under no circumstances will a taxpayer be treated as having waived its right to see the issued
TAM or having waived its rights regarding disclosure and deletions described in section 10.

Transmittal Form 4463,
Request for Technical
Advice

.07 The field counsel with whom the TAM request was coordinated must use Form 4463,
Request for Technical Advice Memorandum, for submitting a request for a TAM through
TSS4510 to the Associate office. While the field office is responsible for preparing Form 4463,
field counsel must submit the Form 4463 for a TAM request to the TSS4510 email address. To
the extent feasible, the accompanying documents should also be submitted to the TSS4510 email
address, followed by hard copies upon the request of the assigned Associate office.

## All supporting and additional documents

.08 Field counsel should send additional or supporting documents that are not available in
electronic form by fax to TSS4510 at 855-592-8976 or by express mail or private delivery service
to the following address to avoid any delays in regular mail:

Internal Revenue Service
Attn: CC:PA:LPD:TSS, Room 5336
1111 Constitution Avenue, NW
Washington, DC 20224

Whenever possible, all documents should contain the case number and name of the Associate
office attorney assigned to the pre-submission conference for the TAM request.

The field office must indicate on the Form 4463 the proper mailing address of the Director to
whom the Associate office should mail a copy of its reply to the TAM request under section 10.06
of this revenue procedure.

## Number of copies of request to be submitted

.09 The field office must submit one paper copy of the request for a TAM to the address in
section 7.08 of this revenue procedure. If the TAM relates to a SB/SE, W&I, or TE/GE taxpayer,
the field office must send one paper copy to the Division Counsel of the operating division that
has jurisdiction over the taxpayer's tax return. If the TAM relates to a LB&I taxpayer, an
electronic copy (no paper copy to follow) to "&LB&I HQ" email address should be sent. If the
request is from an Appeals office, the field office must advise Appeals Policy that a request has
been submitted. The field office will send a copy of the TAM request to *AP TAM Coordinator
by encrypted e-mail.

## SECTION 8. INITIAL PROCESSING OF THE REQUEST FOR TECHNICAL ADVICE BY THE ASSOCIATE OFFICE

Assignment and initial review by Associate office attorney

.01 After a request for technical advice has been received by the appropriate Associate office, it will be assigned to an Associate office attorney and reviewer. The Associate office attorney determines whether the request meets all procedural requirements of sections 4, 5, 6, and 7 of this revenue procedure and whether it raises issues that may be appropriately addressed in a TAM. Unless otherwise indicated, all references in this section to the Associate office or Associate office attorney are to the Associate office and attorney with primary responsibility for the TAM request.

Other forms of guidance

.02 If the assigned reviewer in the Associate office determines that guidance other than a TAM should be provided, the reviewer will immediately notify the Associate Chief Counsel. This other form of guidance may be published guidance, generic advice, or case-specific advice. Although the reviewer should make this determination as soon as possible, it may be made at any time during the processing of the request for technical advice. To make this determination, the reviewer should consider whether the issue has a broad application to similarly situated taxpayers or a practice area and whether resolution of the issue is important to a clear understanding of the tax laws. The Associate Chief Counsel, after consultation with Division Counsel Headquarters and the Operating Division, will decide whether to provide the TAM or issue guidance in another form. The Associate Chief Counsel may decide to provide the TAM as well as another type of guidance, if doing so would promote sound tax administration.

Initial acknowledgment and processing

.03 Upon receipt of a request for technical advice, the Associate office attorney who is assigned as the primary attorney on the request should immediately contact the field office. The purpose of this contact is only to acknowledge receipt of the request.

Deficiencies in request leading to return

.04 Within 7 calendar days after assignment, the Associate office attorney will contact the field office and field counsel to discuss any deficiencies in the request and will work with the field office and field counsel to correct them.

If only minor procedural deficiencies exist, the Associate office attorney will request the additional information without returning the case. If the deficiencies cannot be corrected over the next 7 calendar days, the request will be closed and returned to the field office. The request may be resubmitted when the deficiencies are corrected. If substantial additional information is required to resolve an issue or if major procedural problems cannot be resolved, the Associate office attorney will inform the field office and field counsel that the request for technical advice will be returned. If a request is returned, the field office should promptly notify the taxpayer of that decision and the reasons for the decision.

Initial discussion

.05 Within 21 calendar days of receipt, the Associate office attorney should contact the field office to discuss any procedural and substantive issues in the request. The Associate office attorney should also inform the field office about any matters referred to another Associate office for assistance and provide points of contact.

If additional information requested

.06 If additional information is needed, the Associate office attorney will obtain that informa- tion from the taxpayer, the field office, or the Director in the most expeditious manner possible. Any additional information requested from the taxpayer by the Associate office must be submitted by letter, accompanied by a penalties of perjury statement that conforms with the penalties of perjury statement set forth in section 7.06 of this revenue procedure, within 10 calendar days after the request for information is made. To facilitate prompt action, the Associate office and taxpayers are encouraged to exchange information by fax or express mail service whenever feasible. A taxpayer's failure to submit the additional information requested is considered a failure to participate in a material stage of the TAM process and results in a waiver of the right to the taxpayer conference discussed in section 9.

To facilitate prompt action on TAM requests, the Associate office may request any additional information from the taxpayer by fax. The Associate office attorney will take certain precautions to protect confidential information. For example, the Associate office attorney will use a cover sheet that identifies the intended recipient of the fax and the number of pages transmitted, that does not identify the taxpayer by name or tax identifying number and that contains a statement prohibiting unauthorized disclosure of the document if a recipient of the faxed document is not the intended recipient of the fax. The cover sheet will be faxed in an order in which it is the first page covering the faxed document.

Taxpayer request for extension of time to submit additional information

.07 A taxpayer's request for an extension of time to submit additional information must be made in writing and received by the Associate office within the 10-day period. It must provide compelling facts and circumstances to justify an extension. Only an Associate Chief Counsel may determine whether to grant or deny the request for an extension. Except in rare and unusual circumstances, the Associate office will not agree to an extension of more than 10 calendar days beyond the end of the 10-day period. There is no right to appeal the denial of a request for an extension.

Where to send additional information

.08 Any additional information submitted by the taxpayer should be sent to the attention of the assigned Associate office attorney. Generally, only the original of the additional information is necessary. In appropriate cases, however, the Associate office may request additional copies of the information. In all cases, the taxpayer must also send a copy of the additional information to the field office and field counsel for comment.

Any comments by the field office or field counsel must be furnished within an agreed period of time to the Associate office with primary responsibility for the TAM request. If there are no comments, the Associate office attorney should be notified promptly.

Tentative conclusions

.09 The Associate office attorney will inform the field office and field counsel when all necessary substantive and procedural information has been received. If possible, the Associate office attorney will provide a tentative conclusion. If no tentative conclusion can be reached, the Associate office attorney is encouraged to discuss the underlying complexities with the field office and field counsel. Because the Associate office attorney's tentative conclusion may change during the preparation and review of the TAM, the tentative conclusion is not considered final. If the tentative conclusion is changed, the Associate office attorney will inform the field office and field counsel. Neither the Associate office, nor the field office or the field counsel, should discuss the

tentative conclusion and its underlying rationale with the taxpayer or the taxpayer's representative
until the Associate office is ready to provide a TAM that agrees with the taxpayer's position or
is ready to hold an adverse conference. To afford taxpayers an appropriate opportunity to prepare
and present their position at a taxpayer conference, however, the taxpayer or the taxpayer's
representative is to be told (by the Associate office attorney) the tentative conclusion when
scheduling the taxpayer conference. Field counsel should be notified of, and given the opportunity
to participate in, the notification to the taxpayer of the tentative conclusions and scheduling of the
taxpayer conference.

SECTION 9. TAXPAYER CONFERENCES

Notification of conference

.01 If the Associate office proposes to provide a TAM that will be adverse to the taxpayer, and if the taxpayer has not waived its right to a taxpayer conference, the taxpayer will be informed of the time and place of the conference.

Scheduling conference

.02 The taxpayer conference for a TAM must occur within 10 calendar days after the taxpayer is informed that an adverse TAM is proposed. The Associate office will notify the field office and field counsel of the scheduled taxpayer conference and will offer the field office and field counsel the opportunity to participate in the conference.

Taxpayer may request extensions

.03 Only an Associate Chief Counsel may approve an extension of the 10-day period for holding a conference. Although extensions are granted in appropriate circumstances at the discretion of the Associate Chief Counsel, taxpayers should not expect extensions to be routinely granted. The taxpayer must submit a request for an extension in writing to the Associate office, and must immediately notify the field office and field counsel of the request. The request must contain a detailed justification for the extension and must be submitted sufficiently before the end of the 10-day period to allow the Associate Chief Counsel to consider, and either approve or deny, the request before the end of the 10-day period. If unusual circumstances near the end of the 10-day period make a timely written request impracticable, the taxpayer may orally inform the assigned Associate office attorney or reviewer before the end of the 10-day period about the need for an extension and then promptly submit the written request. The Associate office attorney will inform the taxpayer by telephone of the approval or denial of a requested extension. There is no right to appeal the denial of a request for extension.

One conference of right

.04 In general, a taxpayer who has not waived the right to a taxpayer conference is entitled by right to only one conference with the Associate office. The conference is normally held at the branch level. A person who has authority to sign the transmittal memorandum in his or her own name, or on behalf of the branch chief, will participate. When more than one branch of an Associate office has taken an adverse position on issues 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 in his or her own name, or for the branch chief, will participate in the conference. The conference is the taxpayer conference for each subject discussed.

Additional conferences may be offered

.05 After the taxpayer conference, the Service will offer the taxpayer an additional conference only if 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. If a tentative position is changed 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 change is based were discussed at the taxpayer conference. The limitation on the number of conferences to which a taxpayer is entitled does not prevent the Associate office from inviting a taxpayer to participate in additional conferences if

that office determines that additional conferences would be useful. These additional conferences
are not to be offered routinely following an adverse decision.

## Additional information submitted after the conference

.06 In order to ensure that the taxpayer conference is productive, the taxpayer should make a
reasonable effort to supply all information, documents, and arguments in writing well before the
conference.

Sometimes, however, it becomes apparent that new information may be helpful in resolving
issues discussed at the conference. If the Associate office and the taxpayer agree that such
information would be helpful, all such materials must be submitted and received within 10
calendar days after the conference. Any extension of the 10-day period must be requested by the
taxpayer in writing and must be approved by the branch chief of the Associate office attorney.
Extensions will not be routinely granted. Taxpayers have no right to submit additional materials
after the conference, and are discouraged from providing additional copies or versions of
materials already submitted. If the additional information is not received from the taxpayer within
10 calendar days plus any extensions granted by the branch chief, the TAM will be issued on the
basis of the existing record.

The taxpayer must also send a copy of the additional information to the field office and field
counsel for comment. If the additional information has a significant impact on the facts in the
request, the Associate office will ask the field office and field counsel for comments, both of
which will respond within the agreed upon period of time. If there are no comments, the Associate
office attorney will be promptly notified.

Normally conducted in
person

.07 Conferences under this section are generally conducted in person, but may be conducted by
telephone.

Service makes only
tentative recommendations

.08 At the end of the taxpayer conference, no commitment will be made about the conclusion
that the Service will finally adopt for any issue, including the outcome of a request for relief under
§ 7805(b).

Conference may not be
taped

.09 No tape, stenographic, or other verbatim recording of a taxpayer conference may be made
by any party.

# SECTION 10. PREPARATION OF THE TECHNICAL ADVICE

Reply consists of two parts

.01 The Associate office attorney prepares replies to requests for technical advice in two parts.
Each part identifies the taxpayer by name, address, identification number, and tax period(s)
involved. The first part of the reply is a transmittal memorandum (Form M-6000). The second
part is the TAM, which contains: (1) a statement of the issues; (2) the conclusions of the Associate
office; (3) a statement of the facts pertinent to the issues; (4) a statement of the relevant legal
authority, including legislation, tax treaties, court decisions, regulations, notices, revenue rulings,
revenue procedures, or announcements; and (5) a discussion of the rationale supporting the
conclusions reached by the Associate office. The conclusions give direct answers, whenever
possible, to the specific issues raised by the field office. The Associate office is not bound by the
issues as submitted by the taxpayer or by the field office and may reframe the issues to be
answered in a TAM after consultation with the field office and field counsel. The discussion of
the issues in a TAM will be in sufficient detail so that the field or Appeals officials will understand
the reasoning underlying the conclusion.

Status of a request .

.02 The taxpayer or the taxpayer's authorized representative may obtain information on the status of the request by contacting the field office that requested the advice. The Associate office attorney or reviewer assigned to the TAM request will give frequent status updates to the field office and field counsel.

Opportunity for field counsel review

.03 The Associate office attorney will inform field counsel regarding the Associate office's final conclusions before a draft of the TAM is sent to the field office. Field counsel will be offered a reasonable opportunity to review and informally discuss these conclusions with the Associate office before the final TAM is sent to the field office.

Copy of preliminary TAM to field office and field counsel

.04 After field counsel is given a reasonable opportunity to review the Associate office's final conclusions, the Associate office attorney will provide a draft of the proposed final version of the TAM to the field office and field counsel. If the field office or field counsel disagrees with the proposed final conclusions, normal reconciliation and reconsideration procedures will be followed to resolve the disagreement.

Routing of reply

.05 A TAM is generally addressed to the field office that requested it. In the case of issues arising within the jurisdiction of the Director, Indian Tribal Governments and Tax Exempt Bonds; the Director, Employee Plans or Exempt Organizations Examinations; or the Director, Employee Plans or Exempt Organizations Rulings &amp; Agreements, the TAM is addressed to the appropriate Director with a copy sent to the field office and the field counsel attorney. A copy of a TAM requested by LB&amp;I should be mailed simultaneously to the appropriate Practice Area Director. A copy of a TAM requested by Appeals should be addressed to the appropriate field office, and an electronic copy sent by encrypted e-mail to *AP TAM Coordinator.

Copy of final TAM to field counsel and Division Counsel

.06 The Associate office will provide a copy of the final TAM to the individual field counsel attorney who assisted the field office in submitting the request and to that attorney's Associate Area Counsel or other manager, as appropriate. The Associate office also will provide a copy of the final TAM to the Division Counsel for the operating division from which the request originated or that has jurisdiction over the particular matter in the TAM. The TAM may be transmitted electronically if it is in .pdf format, or may be sent by mail or fax transmission.

Reconsideration

.07 Requests for reconsideration may be submitted by the field office, or in the case of bonds under the jurisdiction of the Director of Indian Tribal Governments and Tax Exempt Bonds, by that Director after the Associate office has provided a final copy of the TAM to field counsel and Division Counsel. Requests for reconsideration must describe with specificity the errors in the analysis and conclusions. Requests should focus on points that the TAM overlooked or miscon- strued rather than simply re-argue points raised in the initial request. The Associate office will give priority consideration to the request and should act on the request as expeditiously as possible. The Associate office may request further submissions from the field office and field counsel or the taxpayer, but the parties should otherwise make no additional submissions. If a request for reconsideration fails to follow the procedures set forth in this section of this revenue procedure, or the request fails to raise issues or arguments different from those asserted in the initial request for technical advice, the Associate office may return the request for reconsideration without ruling on the request for reconsideration.

Discussing contents with the taxpayer

.08 The Associate office will not discuss the specific contents of the TAM with the taxpayer until after the field office has provided a copy of the TAM to the taxpayer.

Section 6110

.09 Before the TAM is issued, the Associate office will inform the taxpayer in writing of the material likely to appear in the TAM that the taxpayer proposed for deletion but that the Associate

office 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 Associate office will attempt to resolve all disagreements about proposed deletions before the
TAM is issued. The taxpayer does not have the right to a conference to resolve any disagreements
about material to be deleted from the text of the TAM. For TAMs subject to § 6110, accompa-
nying the TAM is a notice under § 6110(f)(1) of intention to disclose a TAM, including a copy
of the version proposed to be open to public inspection and notations of third party communi-
cations under § 6110(d). If the transmittal memorandum associated with the TAM provides
information not in the TAM, or if the case is returned for further development without issuance
of the TAM, the transmittal memorandum may be Chief Counsel Advice, as defined in
§ 6110(i)(1), subject to public inspection under § 6110. These procedures do not apply to TAMs
to the extent that § 6104 applies. See section 7.05 of this revenue procedure and § 6110(l)(1).

## TAM takes effect when taxpayer receives a copy

.10 After a TAM is sent to the field office (or, for Tax Exempt Bonds, Employee Plans, and
Exempt Organizations, to the Director), the field office or Director adopts and issues the TAM
within the meaning of Treas. Reg. § 301.6110-2(h). Then the field office or Director provides the
taxpayer a copy of the TAM, the notice of intention to disclose under § 6110(f)(1), as applicable,
and a copy of the version proposed to be open to public inspection, which includes notations of
third party communications under § 6110(d), as applicable. If a request for technical advice
pertains to more than one taxpayer, and the requirements of section 7.02 of this revenue procedure
have been met, the field office or Director will provide each taxpayer with a copy of the TAM and
will notify the Associate office when this occurs. The requirement to provide a taxpayer a copy
of the TAM does not apply to a TAM involving civil fraud or a criminal investigation, or to a
TAM involving a jeopardy or termination assessment. See section 10.12 of this revenue proce-
dure.

## Taxpayer may protest deletions not made

.11 Generally, the Associate office considers only the deletion of material that the taxpayer has
proposed for deletion or other deletions as required under § 6110(c) before the TAM is sent to the
field office or Director. After receiving the notice of intention to disclose under § 6110(f)(1), the
taxpayer may protest the disclosure of certain information in it by submitting a written statement
in accordance with the notice of intention to disclose under § 6110(f)(1) (Notice 438, Notice of
Intention to Disclose).

## Public inspection in civil fraud or criminal investigation cases

.12 The provisions of this revenue procedure 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, granting conferences in the Associate office, or
providing a copy of the TAM to the taxpayer do not apply to a TAM described in § 6110(g)(5)(A),
which involves any matter that is the subject of a civil fraud or criminal investigation, or that
involves a jeopardy or termination assessment. In these cases, after all proceedings in the
investigations or assessments are complete, the taxpayer receives a copy of the TAM with the
notice of intention to disclose under § 6110(f)(1). The taxpayer may protest the disclosure of
certain information in the TAM by submitting a written statement in accordance with the Notice
of Intention to Disclose (Notice 438).

## SECTION 11. WITHDRAWAL OF REQUESTS FOR TECHNICAL ADVICE

Taxpayer notified

.01 Once a request for a TAM has been sent to the Associate office, only a Director may
withdraw the request, and this must be done before the responding transmittal memorandum for
the TAM is signed. To withdraw the request, the Director must first notify the taxpayer of the
intent to withdraw unless: (1) the period of limitation on assessment is about to expire and the
taxpayer has declined to give written consent to extend the period; or (2) the notification would

Sec. 10.10

be prejudicial to the best interests of the Government. If the taxpayer does not agree that the request should be withdrawn and wishes to request review of the decision, the procedures in section 5.04 of this revenue procedure for review must be followed.

Acknowledgment of withdrawal

.02 Acknowledgment of the withdrawal of a request submitted by a Director should be sent to the appropriate Director, with a copy to the TAM coordinator. For a withdrawal of a request submitted by Appeals, send an electronic copy by encrypted e-mail to *AP TAM Coordinator.

Associate office may decide not to provide a TAM

.03 If the Associate office determines that a TAM will not be provided, it may return the request for technical advice unanswered. This determination must be made on the basis of sound tax administration and must be approved by the Associate Chief Counsel. The decision not to provide a TAM should be an infrequent occurrence and be made only after consultation with field counsel and the requesting field office. If field counsel disagrees with this determination, they may request reconsideration through existing reconciliation procedures.

Associate office may provide views

.04 If a request for technical advice is withdrawn or an Associate office decides not to provide a TAM, the Associate office may address the substantive issues through other published guidance. The Associate office may also address the substantive issues through legal advice, either generic or case-specific. The decision to address the issues through these other forms of guidance will be based on the general standards for issuing those types of guidance.

SECTION 12. USE OF THE TECHNICAL ADVICE

Service generally applies advice in processing the taxpayer's case

.01 After a TAM is issued, the field office must process the taxpayer's case on the basis of the conclusions in the TAM. In the case of a TAM unfavorable to the taxpayer, the Appeals Area Director may decide to settle the issue under existing settlement authority. Appeals, however, will not settle an issue contrary to a TAM if it concerns an organization's exempt status or private foundation classification, or if it concerns an employee plan's status or qualification. Thus, if the TAM received by the field office concerns an organization's exempt status, private foundation classification, or a plan's status or qualification, the organization or plan has no right to appeal those specific issues with the Appeals Office. Appeals may submit a proposed disposition of the issue contrary to a TAM as a request for a new TAM. If a TAM provides conclusions involving a § 103 obligation and the issuer of this obligation, the field office must apply the conclusions to the issuer and any holder of the obligation, unless a field office separately initiates a request for a TAM on behalf of the holder for the same issue addressed in the TAM involving the issuer, and the Associate office issues a TAM involving that issue and that holder.

### SECTION 13. RETROACTIVITY AND RELIANCE

Usually applies
retroactively

.01 The holdings in a TAM are applied retroactively, whether they are initial holdings or they
are later holdings that modify or revoke holdings in a prior TAM. The Associate Chief Counsel
with jurisdiction over the TAM, however, may exercise the discretionary authority under
§ 7805(b) to limit the retroactive effect of any holding. This authority is exercised in rare and
unusual circumstances.

### Revocation or modification of an earlier letter ruling or TAM

.02 A TAM may be used to seek revocation or modification of an earlier TAM or revocation
or modification of a private letter ruling (PLR). See Rev. Proc. 2018-1, section 11.03 et seq. with
respect to revocation or modification of PLRs. Generally, a TAM that revokes or modifies a letter

Sec. 11.02
January 2, 2018

ruling or an earlier TAM will not be applied retroactively if: (1) the applicable law has not
changed; (2) the taxpayer directly involved in the letter ruling or earlier TAM relied in good faith
on it; and (3) revocation or modification would be detrimental to the taxpayer. The new TAM will
be applied retroactively to the taxpayer whose tax liability was directly involved in the letter
ruling or TAM if: (1) controlling facts have been misstated or omitted; or (2) the facts at the time
of the transaction are materially different from the controlling facts on which the letter ruling or
earlier TAM was based. If a letter ruling or a TAM is modified or revoked with retroactive effect,
the notice to the taxpayer, except in fraud cases, should set forth the grounds on which the
modification or revocation is being made and the reason why the modification or revocation is
being applied retroactively.

### Continuing action or series of actions

.03 If an issue addressed in the TAM relates to a continuing action or a series of actions, it is
generally applied until it is withdrawn or until the conclusion is modified or revoked by a final
decision in favor of the taxpayer with respect to that issue, the enactment of legislation, the
ratification of a tax treaty, a decision of the United States Supreme Court, or the issuance of
temporary regulations, final regulations, 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 TAM. If a new holding in a TAM is less favorable to the taxpayer than the
holding in an earlier TAM, the new holding is generally not applied to the tax period when the
taxpayer relied on the earlier holding. It will be applied to that tax period, however, if material
facts on which the earlier TAM was based have changed.

Other taxpayers

.04 Under § 6110(k)(3), a taxpayer may not rely on a TAM issued by the Service for another
taxpayer. In addition, retroactive or non-retroactive treatment to one member of a practice area
directly involved in a letter ruling or TAM does not extend to another member of that same
practice area, and retroactive or non-retroactive treatment to one client of a tax practitioner does
not extend to another client of that same practitioner. The tax liability of each employee covered
by a letter ruling or TAM relating to a pension plan of an employer is directly involved in the
letter ruling or TAM.

### SECTION 14. HOW MAY RETROACTIVE EFFECT BE LIMITED?

Request for relief under
§ 7805(b)

.01 A taxpayer with respect to whom a TAM is issued, or for whom a TAM request is pending,
may request that the appropriate Associate Chief Counsel limit the retroactive effect of any
holding in the TAM or of any subsequent modification or revocation of the TAM. For a pending
request for technical advice, the taxpayer should make the request for relief under § 7805(b) as
part of the initial request for advice. The Associate office will consider a request for relief under
§ 7805(b) made at a later time if the Director determines that there is justification for the delay
in the making of the request. The Director's determination that the delayed request for § 7805 is
not justified cannot be appealed. Requests for relief under § 7805(b) relating to the revocation or
modification of determination letters and letter rulings issued by TE/GE are handled under the
procedures in sections 23 and 29 of Rev. Proc. 2018-4, and section 12 of Rev. Proc. 2018-5, this
Bulletin.

Form of request for
relief - in general

.02 During the course of an examination of a taxpayer's return by the field office or during
consideration of the taxpayer's return by the Appeals Area Director, a taxpayer's request to limit
retroactivity must be made in the form of a request for a TAM. This includes recommendations
by a Director that an earlier letter ruling or TAM be modified or revoked. The request must meet
the general requirements of a request for technical advice. It 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; and (4) include any documents bearing on the request. The taxpayer's request
must be submitted to the Director, who should then forward the request to the Associate office for

Sec. 13.03

consideration. If taxpayer submits a request for relief after the initial TAM request, the taxpayer
must provide justification for having delayed the request.

# Form of request for relief - continuing transaction before examination of return

.03 A request for relief under § 7805(b) must be made in the form of a request for a letter ruling
if: (1) a TAM addressing a continuing transaction is modified or revoked by later published
guidance; and (2) the request for relief is submitted before an examination has begun covering the
tax period(s) for which relief is sought. The requirements for a letter ruling request are given in
Rev. Proc. 2018-1 (this Bulletin).

Taxpayer's right to a
conference

.04 When a request for a TAM concerns only the application of § 7805(b), the taxpayer has the
right to a conference with the Associate office in accordance with the provisions of section 9 of
this revenue procedure. If the request for application of § 7805(b) is included in the request for
a TAM on the substantive issues or is made before the taxpayer conference 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 TAM request after a taxpayer
conference has been held on the substantive issues and the Director determines that there is
justification for having delayed the request, then the taxpayer will have the right to a taxpayer
conference concerning the application of § 7805(b), with the conference limited to discussion of
this issue only.

## Reconsideration of request for relief under § 7805(b)

.05 When a TAM grants a taxpayer relief under § 7805(b), the Director may not request
reconsideration of the § 7805(b) issue unless the Director determines there has been a misstate-
ment or omission of controlling facts by the taxpayer in its request for § 7805(b) relief.

# SECTION 15. SIGNIFICANT CHANGES MADE TO REV. PROC. 2017-2

There were no significant changes made to Rev. Proc. 2017-2.

## SECTION 16. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2017-2, 2017-1 I.R.B. 106, is superseded.

SECTION 17.
EFFECTIVE DATE

This revenue procedure is effective January 2 2018.

## DRAFTING INFORMATION

The principal author of this revenue procedure is Joseph T. Maher of the Office of Associate
Chief Counsel (Procedure and Administration). For further information regarding this revenue
procedure for matters under the jurisdiction of:

(1) the Associate Chief Counsel (Corporate), contact Ken Cohen at (202) 317-7700 or Jean
Broderick at (202) 317-6848 (not a toll-free call);

(2) the Associate Chief Counsel (Financial Institutions and Products), contact Scott Brown at
(202) 317-4423 or Julanne Allen at (202) 317-4423 (not a toll-free call);

(3) the Associate Chief Counsel (Income Tax and Accounting), contact R. Matthew Kelley at
(202) 317-7002 (not a toll-free call);

(4) the Associate Chief Counsel (Passthroughs and Special Industries), contact Anthony
McQuillen at (202) 317-6850 (not a toll-free call);

(5) the Associate Chief Counsel (Procedure and Administration), contact Charles Hall at (202)
317-3400 (not a toll-free call);

(6) the Associate Chief Counsel (Tax Exempt and Government Entities), contact Michael B.
Blumenfeld at (202) 317-6000 (not a toll-free call);

(7) the Associate Chief Counsel (International), contact Nancy Galib at (202) 317-3800 (not a
toll-free call);

(8) the Commissioner (Large Business & International Division), contact Shirley S. Lee at
(202) 317-3152 (not a toll-free call);

(9) the Commissioner (Small Business/Self-Employed Division), contact Samuel Berman at
(240) 613-6368 (not a toll-free call);

(10) the Commissioner (Wage and Investment Division), contact Geoffrey Gerbore at (631)
447-4428 (not a toll-free call); or

(11) the Office of Appeals, contact Charmaine B. Osbin at (281) 721-7275 (not a toll-free call).

### INDEX References are to sections in Rev. Proc. 2018-2

Additional Information

- initial processing of TAM request

8.06

- taxpayer request for extension of time to send

8.07

- where to send

8.08

- after taxpayer conference

9.06

- proposed deletions under § 6110 7.05,

10.09

Appeal of decision to seek or not seek TAM

5.03

-The decision of the Director, the LB&amp;I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations may be reviewed but not appealed

5.04

Civil fraud or criminal investigation cases

10.12

Conferences

- offered 6, 9,

14.04

- after taxpayer conference

9.05

- scheduling 6.06,

9.02

request to limit retroactivity

14.04

telephone conferences 6.07,

9.07

Definitions

- Appeals officer

2.03

- Director

2.02

- field office

2.06

- field counsel

2.07

- frivolous issue

4.04

- taxpayer

2.04

- technical advice

1.01

Discussions with Taxpayers

- contents of TAM

10.08

- substantive issues at pre-submission conference

6.09

- tentative conclusion in TAM

8.09

Employee Plans and Exempt Organizations

- application of §6104

7.05

- mandatory technical advice on employee plans matters

3.04

- requests by Exempt Organizations Rulings &amp; Agreements

3.05

- request for relief under § 7805(b) for matters handled by TEGE

4.07

Extension of Time

- to appeal decision not to request a TAM

5.03

- to disagree with statement of facts in technical advice request.

7.06

- to schedule conference

9.03

- to submit additional information requested by Associate office in initial processing of TAM

8.07

- to submit additional information after conference.

9.06

Foreign laws and documents

7.03

Issues Eligible for TAMs

Issues Not Eligible for TAMs

Penalties of Perjury Statement

- form

7.06

- required when no factual agreement

7.06

- required with additional information

8.06

Power of Attorney

6.11

Pre-submission Conferences

Public Inspection Under §6110

- deletion statement required

7.05

- exception when § 6104 applies

7.05

- notice of intention to disclose

10.09

- protesting deletions not made

10.11

Responsibility for Requesting Advice

5.01

Retroactive Effect

- request to limit retroactivity

14.01

- format of request

14.02, 14.03

- right to conference

14.04

Section 301.9100 Relief

4.03

Status of TAM

10.02

Taxpayer Participation

3.03

- consequences of failure to participate in material stage

7.06, 8.06

What to Include in the Request for Advice

- Memorandum of issues, facts, law, and arguments.

7.01

- Statement proposing information to be deleted from public inspection

7.05

- Transmittal Form 4463

7.07

- Number of copies

7.09

Where to Send

- information required prior to pre-submission conference

6.05

- request for referral for a TAM

5.02

Withdrawal of TAM Requests

## Rev. Proc. 2018-3

# TABLE OF CONTENTS

SECTION 1. PURPOSE AND NATURE OF CHANGES

130

SECTION 2. BACKGROUND AND SCOPE

130

SECTION 3. AREAS IN WHICH RULINGS WILL NOT BE ISSUED

131

SECTION 4. AREAS IN WHICH RULINGS WILL NOT ORDINARILY BE ISSUED

138

SECTION 5. AREAS UNDER STUDY IN WHICH RULINGS WILL NOT BE ISSUED

143

SECTION 6. AREAS COVERED BY AUTOMATIC APPROVAL PROCEDURES

144

SECTION 7. EFFECT ON OTHER REVENUE PROCEDURES

145

SECTION 8. EFFECTIVE DATE.

145

SECTION 9. PAPERWORK REDUCTION ACT

145

DRAFTING INFORMATION

145

## SECTION 1. PURPOSE AND NATURE OF CHANGES

.01 The purpose of this revenue pro-
cedure is to update Rev. Proc. 2017-3,
2017-1 I.R.B. 130, by providing a re-
vised list of those areas of the Internal
Revenue Code under the jurisdiction of
the Associate Chief Counsel (Corpo-
rate), the Associate Chief Counsel (Fi-
nancial Institutions and Products), the
Associate Chief Counsel (Income Tax
and Accounting), the Associate Chief
Counsel (Passthroughs and Special In-
dustries), the Associate Chief Counsel
(Procedure and Administration), and the
Associate Chief Counsel (Tax Exempt
and Government Entities) (TEGE) relat-
ing to issues on which the Internal Rev-
enue Service (the "Service") will not
issue letter rulings or determination let-
ters. For a list of areas under the juris-
diction of the Associate Chief Counsel
(International) relating to international
issues on which the Service will not
issue letter rulings or determination let-
ters, see Rev. Proc. 2018-7, this Bulle-
tin. For a list of areas under the juris-
diction of the Commissioner, Tax
Exempt and Government Entities Divi-
sion relating to issues, exempt organiza-
tions, plans, or plan amendments on
which the Service will and will not issue
letter rulings or determination letters, see

Rev. Proc. 2018-4 and Rev. Proc.
2018-5, this Bulletin.

.02 Changes.

(1) Section 3.01(22), regarding § 115,
has been added.

(2) Section 3.01(31), regarding §§ 165
and 1502, has been added.

(3) Old section 3.01(51) regarding
§§ 332, 351, 355, 368, and 1036 has been
renumbered to section 3.01(53) and modi-
fied to remove the general no-rule position
for (i) transactions under § 368(a)(1)(D) and
355, and (ii) distributions under § 355 pur-
suant to section 5.06 of Rev. Proc. 2017-52,
2017-41 I.R.B. 283.

(4) Old section 3.01(54), regarding
§ 355, has been renumbered to section
3.01(56) and modified pursuant to section
5.07 of Rev. Proc. 2017-52, 2017-41
I.R.B. 283.

(5) Old section 3.01(72), regarding
§§ 501, 511, 512, 513, and 514, has been
renumbered to section 3.01(73) and mod-
ified.

(6) Old section 3.01(90), regarding
§ 1033, has been renumbered to section
3.01(91) and modified.

(7) Old section 3.01(126), regarding
§ 7704, has been renumbered to section
3.01(127) and modified.

(8) Section 4.01(9), regarding § 141,
has been modified.

(9) Section 4.02(9), regarding Comfort
Rulings, has been modified pursuant to

section 5.09 of Rev. Proc. 2017-52,
2017-41 I.R.B. 283.

(10) Section 5.01(1), regarding §§ 302
and 304, has been modified.

(11) Old sections 5.01(4) and 5.01(6)
(cross-referencing old section 5.01(4)), re-
garding §§ 355 and 361, have been de-
leted, pursuant to Rev. Proc. 2017-38,
2017-22 I.R.B. 1258.

(12) Old section 5.02, regarding so-
called "north-south" transactions, has
been deleted, pursuant to Rev. Rul. 2017-
09, 2017-21 I.R.B. 1244.

(13) Section 6.08, regarding
§ 2010(c)(5)(A) and § 301.9100-3, has been
added to incorporate the provisions of Rev.
Proc. 2017-34, 2017-26 I.R.B. 1282.

# SECTION 2. BACKGROUND, SCOPE OF APPLICATION, AND NO-RULE ISSUES PART OF INTEGRATED TRANSACTION

.01 Background.

Whenever appropriate in the interest of
sound tax administration, it is the policy
of the Service to answer inquiries of indi-
viduals 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 re-
quired by the revenue laws. In employee
plans matters described in section 5.15 of
Rev. Proc. 2018-1, this Bulletin, the As-
sociate Chief Counsel (TEGE) may issue

letter rulings after 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
rulings or determination letters. These ar-
eas are set forth in four sections of this
revenue procedure. Section 3 reflects
those areas in which rulings or determina-
tion letters will not be issued. Section 4
sets forth those areas in which rulings or
determination letters 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. Section 5
sets forth those areas in which the Service
is temporarily not issuing rulings or deter-
mination letters because those matters are
under study. Finally, section 6 of this rev-
enue procedure lists specific areas in
which the Service will not ordinarily issue
rulings because the Service has provided
automatic approval procedures for these
matters.

See Rev. Proc. 2018-1, this Bulletin,
particularly section 6 captioned "Under
What Circumstances Does The Service
Not Issue Letter Rulings Or Determina-
tion Letters?" for general instructions and
other situations in which the Service will
not or ordinarily will not issue letter rul-
ings or determination letters.

With respect to the items listed, revenue
rulings or revenue procedures may be pub-
lished in the Internal Revenue Bulletin from
time to time to provide general guidelines
regarding the position of the Service.

Additions or deletions to this revenue
procedure as well as restatements of items
listed will be made by modification of this
revenue procedure. Changes will be pub-
lished as they occur throughout the year
and will be incorporated annually in a new
revenue procedure published as the third
revenue procedure of the year. These lists
should not be considered all-inclusive be-
cause the Service may decline to issue a
letter ruling or a determination letter when
appropriate in the interest of sound tax
administration (including due to resource
constraints) or on other grounds whenever
warranted by the facts or circumstances of
a particular case. 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.

If the Service determines that it is not
in the interest of sound tax administration
to issue a letter ruling or determination
letter due to resource constraints, it will
adopt a consistent approach with respect
to taxpayers that request a ruling on the
same issue. The Service will also consider
adding the issue to the no rule list at the
first opportunity. See section 6.02 of Rev.
Proc. 2018-1, this Bulletin.

## .02 Scope of Application.

This revenue procedure does not pre-
clude the submission of requests for tech-
nical advice to the National Office from
other offices of the Service.

## .03 No-Rule Issues Part of Integrated Transaction.

If it is impossible for the Service to
determine the tax consequences of an in-
tegrated transaction without knowing the
resolution of an issue on which the Ser-
vice will not issue rulings or determina-
tion letters under this revenue procedure
involving a part of the transaction or a
related transaction, the taxpayer must state
in the request to the best of the taxpayer's
knowledge and belief the tax conse-
quences of the no-rule issue. The Ser-
vice's ruling or determination letter will
state that the Service did not consider, and
no opinion is expressed upon, that issue.
In appropriate cases the Service may de-
cline to issue rulings or determination let-
ters on such integrated transactions due to
the relevance of the no-rule issue, despite
the taxpayer's representation. See also
section 4.02(2) of this revenue procedure.

## SECTION 3. AREAS IN WHICH RULINGS OR DETERMINATION LETTERS WILL NOT BE ISSUED

.01 Specific Questions and Problems.

(1) Section 42 .- Low-Income Housing
Credit .- Whether under § 42(j)(4)(E) a
casualty loss has been restored by recon-
struction or replacement within a reason-
able period of time. The Service may issue
a determination letter in this case. See
section 12 of Rev. Proc. 2018-1, this Bul-
letin.

(2) Section 45 .- Electricity Produced
from Certain Renewable Resources, Etc .-
The allocation by a partnership of the § 45
credit, the validity of the partnership, or
whether any taxpayer is a valid partner in
the partnership.

(3) Section 45 .- Electricity Produced
from Certain Renewable Resources,
Etc .- Whether the taxpayer meets the re-
quirements of § 45 or Notice 2010-54,
2010-40 I.R.B. 403, for refined coal.

(4) Sections 45 and 48 .- Electricity
Produced from Certain Renewable Re-
sources, Etc .; Energy Credit .- The appli-
cation of the beginning of construction
requirement under § 45(d) and § 48(a)(5).

(5) Section 47 .- Rehabilitation Cred-
it .- The allocation by a partnership of the
§ 47 rehabilitation credit, the validity of
the partnership, or whether any taxpayer is
a valid partner in the partnership.

(6) Section 48 .- See section 3.01(4),
above.

(7) Section 61 .- Gross Income De-
fined .- Whether amounts voluntarily de-
ferred by a taxpayer under a deferred-
compensation plan maintained by an
organization described in § 501 (other
than an eligible plan maintained by an
eligible employer pursuant to the provi-
sions of § 457(b)) are currently includible
in the taxpayer's gross income.

(8) Section 61 .- Gross Income De-
fined .- Whether a split-dollar life insur-
ance arrangement is "materially modified"
within the meaning of § 1.61-22(j)(2) of
the Income Tax Regulations. (Also §§ 83,
301, 1401, 2501, 3121, 3231, 3306, 3401,
and 7872.)

(9) Sections 61, 451, and 1001 .- Gross
Income Defined; General Rule for Tax-
able Year of Inclusion; Determination of
Amount of and Recognition of Gain or
Loss .- Whether, under authorization by
an appropriate state agency to recover cer-
tain costs pursuant to state specified cost
recovery legislations, any investor-owned
utility company realizes income upon: (i)
the creation of an intangible property
right; (ii) the transfer of that intangible
property right; or (iii) the securitization of
the intangible property right.

(10) 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 requirements of § 1.79-
1(c)(2)(ii) of the Income Tax Regulations
had the group consisted of fewer than 10
employees.

(11) Section 83 .- Property Transferred
in Connection with Performance of Ser-
vices .- Whether a restriction constitutes a
substantial risk of forfeiture, if the em-
ployee is a controlling shareholder. Also,
whether a transfer has occurred, if the
amount paid for the property involves a
nonrecourse obligation.

(12) Section 83 .- Property Transferred
in Connection with Performance of Ser-
vices .- Which corporation is entitled to
the deduction under § 83(h) in cases in
which a corporation undergoes a corpo-
rate division, if the facts are not similar to
those described in Rev. Rul. 2002-1,
2002-1 C.B. 268.

(13) Section 101 .- Certain Death Ben-
efits .- Whether there has been a transfer
for value for purposes of § 101(a) in sit-
uations involving a grantor and a trust
when (i) substantially all of the trust cor-
pus 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.

(14) Sections 101, 761, and 7701 .-
Certain Death Benefits; Terms Defined;
Definitions .- Whether, in connection
with the transfer of a life insurance policy
to an unincorporated organization, (i) the
organization will be treated as a partner-
ship under §§ 761 and 7701, or (ii) the
transfer of the life insurance policy to
the organization will be exempt from the
transfer for value rules of § 101, when
substantially all of the organization's as-
sets consist or will consist of life insur-
ance policies on the lives of the members.

(15) Section 102 .- Gifts and Inheri-
tances .- Whether a transfer is a gift
within the meaning of § 102(a).

(16) Section 105(h) .- Amount Paid to
Highly Compensated Individuals Under a
Discriminatory Self-Insured Medical Ex-
pense Reimbursement Plan .- Whether a
self-insured medical reimbursement plan
satisfies the requirements of § 105(h) for a
plan year.

(17) Section 107 .- Rental Value of
Parsonages .- Whether amounts distrib-
uted to a retired minister from a pension
or annuity plan should be excludible from
the minister's gross income as a parson-
age allowance under § 107.

(18) Section 107 .- Rental Value of
Parsonages .- Whether an individual is a
"minister of the gospel" for Federal tax
purposes. (Also §§ 1402(a)(8), (c)(4), and
(e), 3121(b)(8)(A), and 3401(a)(9).)

(19) Section 115 .- Income of States,
Municipalities, Etc .- The results of trans-
actions pursuant to a plan or arrangement
created by state statute a primary objec-
tive of which is to enable participants to
pay for the costs of a post-secondary ed-
ucation for themselves or a designated
beneficiary, including: (i) whether the
plan or arrangement, itself, is an entity
separate from a state and, if so, how the
plan or arrangement is treated for Federal
tax purposes; and (ii) whether any con-
tract under the plan or arrangement is a
debt instrument and, if so, how interest or
original issue discount attributable to the
contract is treated for Federal tax pur-
poses. (Also §§ 61, 163, 1275, 2501, and
7701.)

(20) Section 115 .- Income of States,
Municipalities, Etc .- Whether the income
of membership organizations established
by states exclusively to reimburse mem-
bers for losses arising from workmen's
compensation claims is excluded from
gross income under § 115.

(21) Section 115 .- Income of States,
Municipalities, Etc .- Whether some, but
not all, income of an entity is from the
exercise of an essential government func-
tion in order to be excluded from gross
income under § 115.

(22) Section 115 .- Income of States,
Municipalities, Etc .- Whether income ac-
cruing to a trust, or other entity, relating to
or associated with a qualified retirement
plan described in § 401(a) is excluded
from gross income under § 115.

(23) Section 117 .- Qualified Scholar-
ships .- Whether amounts paid to research

fellows and research associates are schol-
arships or fellowships excluded from
wages for FICA tax purposes.

(24) Section 117 .- Qualified Scholar-
ships .- Whether an employer-related schol-
arship or fellowship grant is excludible from
the employee's gross income, if there is no
intermediary private foundation distributing
the grants, as described in Rev. Proc. 76-
47, 1976-2 C.B. 670.

(25) Section 118 .- Contributions to
the Capital of a Corporation .- Whether a
transfer of an intertie as defined in section
III. B. 2. of Notice 2016-36, 2016-25
I.R.B. 1029, meets all of the requirements
under the safe harbor provided by Notice
2016-36.

(26) Section 119 .- Meals or Lodging
Furnished for the Convenience of the Em-
ployer .- Whether the value of meals or
lodging is excludible from gross income
by an employee who is a controlling
shareholder of the employer.

(27) Section 121 .- Exclusion of Gain
from Sale of Principal Residence .-
Whether property qualifies as the taxpay-
er's principal residence.

(28) 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.

(29) Section 162 .- Trade or Business
Expenses .- Whether compensation is rea-
sonable in amount.

(30) Section 163 .- Interest .- The in-
come tax consequences of transactions in-
volving "shared appreciation mortgage"
(SAM) loans in which a taxpayer, borrow-
ing 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 appreciation in value of the real prop-
erty upon termination of the mortgage.
This applies to all SAM arrangements in
which the loan proceeds are used for com-
mercial or business activities, or 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.)

(31) Sections 165 and 1502 .- Losses;
Regulations .- In connection with a worth-
less stock loss under § 165(g)(3)(B),
whether the character of gross receipts
received by a consolidated group member
in an intercompany transaction may be
redetermined by reference to the character
of the source funds possessed by the coun-
ter party to the intercompany transaction.

(32) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a
charitable contribution deduction under
§ 170 is allowed for a transfer of an in-
terest in a limited partnership or a limited
liability company taxed as a partnership to
an organization described in § 170(c).

(33) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a tax-
payer who advances funds to a charitable
organization and receives therefor a prom-
issory 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.

(34) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether an or-
ganization is or continues to be described
in § 170(b)(1)(A) (other than clause (v))
or § 170(c)(2) - (5), including, for exam-
ple, whether changes in an organization's
activities or operations will affect or jeop-
ardize the organization's status as an or-
ganization described in those sections.
The Associate Chief Counsel (TEGE) will
rule, however, on specific legal questions
related to §§ 170(b)(1)(A) or 170(c) that
are not otherwise described in this reve-
nue procedure. See Rev. Proc. 2018-5,
this Bulletin, for the procedures for ob-
taining determination letters on public
charity status under § 170.

(35) Section 181 .- Treatment of Certain
Qualified Film and Television Produc-
tions .- The determination under § 1.181-
1(a)(1) and (2) as to who is the owner of a
qualified film or television production.

(36) Section 199 .- Income Attribut-
able to Domestic Production Activities .-
The determination under § 1.199-3(f)(1)
as to who is the taxpayer that has the
benefits and burdens of ownership under
Federal income tax principles of any qual-
ifying production property (as defined in
§ 1.199-3(j)(1)), qualified film (as defined
in § 1.199-3(k)), or utilities (as defined in

§ 1.199-3(1)) during the period in which a
qualifying activity under § 199 occurs.

(37) Section 213 .- Medical, Dental,
Etc., Expenses .- Whether a capital ex-
penditure for an item that is ordinarily
used for personal, living, or family pur-
poses, such as a swimming pool, has as its
primary purpose the medical care of the
taxpayer or the taxpayer's spouse or de-
pendent, or is related directly to such med-
ical care.

(38) Section 216 .- Deduction of Taxes,
Interest, and Business Depreciation by Co-
operative Housing Corporation Tenant-
Stockholder .- Whether a unit constitutes an
"apartment in a building" under
§ 216(b)(1)(B).

(39) Section 264 .- Certain Amounts
Paid in Connection with Insurance Con-
tracts .- Whether § 264(d)(1) applies.

(40) Section 264(c)(1) .- Contracts
Treated as Single Premium Contracts .-
Whether "substantially 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.

(41) Sections 267, 304, 331, 332, 351,
and 1502 .- Losses, Expenses, and Inter-
est with Respect to Transactions Between
Related Taxpayers; Redemption Through
Use of Related Corporations; Gain or
Loss to Shareholders in Corporate Liqui-
dations; Complete Liquidations of Subsid-
iaries; Transfer to Corporation Controlled
by Transferor; Regulations .- The treat-
ment of transactions in which stock of a
corporation is transferred with a plan or
intention that the corporation be liqui-
dated in a transaction intended to qualify
under § 331.

(42) Section 269 .- Acquisitions Made
to Evade or Avoid Income Tax .- Whether
an acquisition is within the meaning of
§ 269.

(43) Section 274 .- Disallowance of
Certain Entertainment, Etc., 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 au-
thorized by the revenue procedure provid-
ing optional rules for substantiating the

amount of travel expenses for the period
in which the expense was paid or incurred.

(44) Section 302 .- Distributions in
Redemption of Stock .- Whether § 302(b)
applies when the consideration given in
redemption by a corporation consists en-
tirely 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 de-
faults by the corporation.

(45) Section 302 .- Distributions in
Redemption of Stock .- Whether § 302(b)
applies when the consideration given in
redemption by a corporation 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.

(46) Section 302 .- Distributions in
Redemption of Stock .- Whether § 302(b)
applies to a redemption of stock, if, after
the redemption, the distributing corporation
uses property that is owned by the share-
holder 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 subor-
dinate to the claims of the corporation's
general creditors. Payments for the use of
property will not be considered to be depen-
dent upon future earnings merely because
they are based on a fixed percentage of
receipts or sales.

(47) Section 302 .- Distributions in
Redemption of Stock .- Whether the ac-
quisition or disposition of stock described
in § 302(c)(2)(B) has, or does not have, as
one of its principal purposes the avoid-
ance of Federal income taxes within the
meaning of that section, 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.

(48) Section 302(b)(4) and (e) .- Re-
demption from Noncorporate Shareholder
in Partial Liquidation; Partial Liquidation

Defined .- The amount of working capital
attributable to a business or portion of a
business terminated that may be distrib-
uted in partial liquidation.

(49) Section 304 .- See section
3.01(41), above.

(50) Section 312 .- Effect on Earnings
and Profits .- The determination of the
amount of earnings and profits of a cor-
poration.

(51) Sections 331, 453, and 1239 .-
Gain or Loss to Shareholders in Corporate
Liquidations; Installment Method; Gain
from Sale of Depreciable Property Be-
tween Certain Related Taxpayers .- The
tax effects of a transaction in which there
is a transfer of property by a corporation
to a partnership or other noncorporate en-
tity (or the transfer of stock to such entity
followed by a liquidation of the corpora-
tion) when more than a nominal amount
of the stock of such corporation and the
capital or beneficial interests in the pur-
chasing entity (that is, more than 20 per-
cent in value) is owned by the same per-
sons, and the consideration to be received
by the selling corporation or the selling
shareholders includes an installment obli-
gation of the purchasing entity.

(52) Section 331 .- See section
3.01(41), above.

(53) Sections 332, 351, 368, and
1036 .- Complete Liquidations of Subsid-
iaries; Transfer to Corporation Controlled
by Transferor; Definitions Relating to
Corporate Reorganizations; Stock for
Stock of Same Corporation .- Whether a
transaction qualifies under § 332, 351, or
1036 for nonrecognition treatment or
whether it constitutes a corporate reorga-
nization within the meaning of § 368,
except a transaction intended to qualify
under §§ 368(a)(1)(D) and 355, and
whether various tax consequences (such
as nonrecognition and basis) result from
the application of that section. The Ser-
vice will instead rule only on significant
issues presented in a transaction described
in § 332, 351, 368, or 1036. Additionally,
the Service will rule on one or more sig-
nificant issues under the Code sections
that address the tax consequences (such as
nonrecognition and basis) that result from
the qualification of a transaction under
§ 332, 351, 368, or 1036. See section
6.03(2) of Rev. Proc. 2018-1, this Bulle-
tin.

SIGNIFICANT ISSUE: A significant
issue is a germane and specific issue of
law, provided that a ruling on the issue
would not be a comfort ruling, as defined
in section 6.11 of Rev. Proc. 2018-1, or
the conclusion in such a ruling otherwise
would not be essentially free from doubt.
An issue is germane if resolution of the
issue is necessary to determine an element
of the tax treatment of the transaction. An
issue is specific if it is the narrowest ar-
ticulation of the germane issue. A change
of circumstances arising after a transac-
tion ordinarily does not present a signifi-
cant issue with respect to the transaction.

OBTAINING A LETTER RULING:
To obtain a letter ruling on a significant
issue presented in a transaction, the tax-
payer in its letter ruling request must com-
ply with all the requirements set forth in
section 6.03(2) of Rev. Proc. 2018-1, as
well as Rev. Proc. 2018-1, in general.

(54) Section 332 .- See section
3.01(41), above.

(55) Section 351 .- See sections
3.01(41) and (53), above.

(56) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Whether the distribution of the
stock of a controlled corporation is being
carried out for one or more corporate busi-
ness purposes, whether the transaction is
used principally as a device, and whether
the distribution and an acquisition are part
of a plan under § 355(e). Notwithstanding
the preceding sentence, the Service: (i)
will issue a letter ruling with respect to a
significant issue under § 1.355-2(b) per-
taining to the corporate business purpose
requirement, provided that the issue is a
legal issue and is not inherently factual in
nature, (ii) will issue a letter ruling with
respect to a significant issue under
§ 355(a)(1)(B) and § 1.355-2(d) pertain-
ing to device, provided that the issue is a
legal issue and is not inherently factual in
nature, and (iii) may issue a ruling regard-
ing the effect of redemptions under
§ 355(e) pending the issuance of tempo-
rary or final regulations regarding re-
demptions under § 355(e) if an adverse
ruling on such question would result in
there being a direct or indirect acquisition
by one or more persons of stock represent-
ing a 50-percent or greater interest in the
distributing corporation or the controlled

corporation that is part of a plan under
§ 355(e).

(57) Section 358 .- Basis to Distribu-
tees .- The acceptability of an estimation
procedure or the acceptability of a specific
sampling procedure to determine the basis
of stock acquired by an acquiring corpo-
ration in a reorganization described in
§ 368(a)(1)(B).

(58) Section 368 .- See section
3.01(53), above.

(59) Section 403(b) .- Taxability of
Beneficiary Under Annuity Purchased by
Section 501(c)(3) Organization or Public
School .- Whether the form of a plan sat-
isfies the requirements of § 403(b) as pro-
vided in Rev. Proc. 2018-4, this Bulletin.

(60) Section 409A .- Inclusion in
Gross Income of Deferred Compensation
Under Nonqualified Deferred Compensa-
tion Plans .- The income tax conse-
quences of establishing, operating, or par-
ticipating in a nonqualified deferred
compensation plan within the meaning of
§ 1.409A-1(a); whether a plan is de-
scribed in § 1.409A-1(a)(3)(iv) or (v);
whether a plan is a bona fide vacation
leave, sick leave, or compensatory time
plan described in § 1.409A-1(a)(5); and
whether a plan provides for the deferral of
compensation under § 1.409A-1(b).

(61) Section 411(d)(3) .- Termination or
Partial Termination; Discontinuance of
Contributions .- Whether there has been a
partial termination of an employee plan. The
Service may issue a determination letter in-
volving the partial termination of an em-
ployee plan. See Rev. Proc. 2018-4, this
Bulletin.

(62) Section 414(d) .- Governmental
Plan .- Whether a plan is a governmental
plan under § 414(d).

(63) Section 419(e) .- Welfare Benefit
Fund .- Whether a captive insurance ar-
rangement through which an employer
provides health insurance to current or
retired employees is a welfare benefit
fund.

(64) Section 424 .- Definitions and
Special Rules .- 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 cor-
porate transaction constitutes a modifica-
tion which results in the issuance of a new
option by reason of failing to satisfy the
spread test requirement of § 424(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 em-
ployee additional benefits not present un-
der the old option within the meaning of
§ 424(a)(2).

(65) Section 451 .- General Rule for
Taxable Year of Inclusion .- The tax con-
sequences of a nonqualified unfunded
deferred-compensation arrangement with
respect to a controlling shareholder-
employee eligible to participate in the ar-
rangement.

(66) Section 451 .- General Rule for
Taxable Year of Inclusion .- The tax conse-
quences of nonqualified unfunded deferred-
compensation arrangements in which the ar-
rangements fail to meet the requirements of
Rev. Proc. 92-65, 1992-2 C.B. 428, and
Rev. Proc. 71-19, 1971-1 C.B. 698.

(67) Sections 451 and 457 .- General
Rule for Taxable Year of Inclusion; Non-
qualified Deferred Compensation Plans of
State and Local Governments and Tax-
Exempt Organizations .- The tax conse-
quences to unidentified independent con-
tractors in nonqualified unfunded deferred
compensation plans. This applies to plans
established under § 451 by employers in
the private sector and to plans of state and
local governments and tax-exempt organi-
zations under § 457. However, a ruling
with respect to a specific independent con-
tractor's participation in such a plan may
be issued.

(68) Section 451 .- See section
3.01(9), above.

(69) Section 453 .- See section
3.01(51), above.

(70) Section 457 .- See section
3.01(67), above.

(71) Section 457A .- Nonqualified De-
ferred Compensation from Certain Tax In-
different Parties .- The income tax conse-
quences of establishing, operating, or
participating in a nonqualified deferred
compensation plan within the meaning of
§ 457A(d)(3).

(72) Section 501 .- Exemption from
Tax on Corporations, Certain Trusts,
Etc .- Whether an organization is or con-
tinues to be exempt from taxation under
§ 501(a) as an organization described in
§§ 501(c) or 501(d), including, for exam-
ple, whether changes in an organization's
activities or operations will affect or jeop-

ardize the organization's exempt status.
The Associate Chief Counsel (TEGE) will
rule, however, on specific legal questions
related to §§ 501(c) or 501(d) that are not
otherwise described in this revenue proce-
dure. For example, although the Associate
Chief Counsel (TEGE) would not rule on
whether a change in a § 501(c)(3) organi-
zation's activities would jeopardize the
organization's exempt status, the Associ-
ate Chief Counsel (TEGE) would (subject
to the limitations described in this revenue
procedure) rule on whether such new ac-
tivities would further an exempt purpose
described in § 501(c)(3). See Rev. Proc.
2018-5, this Bulletin, for the procedures
for issuing determination letters on tax-
exempt status under § 501.

(73) Sections 501, 511, 512, 513, and
514 .- Exemption from Tax on Corpora-
tions, Certain Trusts, Etc .; Imposition of
Tax on Unrelated Business Income of
Charitable, Etc., Organizations; Unrelated
Business Taxable Income; Unrelated
Trade or Business; Unrelated Debt-
Financed Income .- Whether a joint ven-
ture between a tax-exempt organization
and a for-profit organization affects an
organization's exempt status, furthers an
exempt purpose, or results in unrelated
business income.

(74) Sections 507, 664, 4941, and
4945 .- Termination of Private Founda-
tion Status; Charitable Remainder Trusts;
Taxes on Self-Dealing; Taxes on Taxable
Expenditures .- Issues pertaining to the
tax consequences of the termination of a
charitable remainder trust (as defined in
§ 664) before the end of the trust term as
defined in the trust's governing instrument
in a transaction in which the trust benefi-
ciaries receive their actuarial shares of the
value of the trust assets.

(75) Section 509 .- Private Foundation
Defined .- Whether an organization is or
continues to be described in § 509(a) in-
cluding, for example, whether changes in
an organization's activities or operations
will affect or jeopardize the organization's
status as a public charity described in
§ 509(a)(1) - (4). The Associate Chief
Counsel (TEGE) will rule, however, on
specific legal questions related to § 509(a)
that are not otherwise described in this
revenue procedure. See Rev. Proc.
2018-5, this Bulletin, for the procedures

for obtaining determination letters on pub-
lic charity status under § 509.

(76) Sections 511, 512, 513, and
514 .- Imposition of Tax on Unrelated
Business Income of Charitable, Etc., Or-
ganizations; Unrelated Business Taxable
Income; Unrelated Trade or Business; Un-
related Debt-Financed Income .- Whether
unrelated business income tax issues arise
when charitable lead trust assets are in-
vested with charitable organizations.

(77) Sections 511, 512, 513, and
514 .- See section 3.01(73), above.

(78) Section 529 .- Qualified Tuition
Programs .- Whether a state-run tuition
program qualifies under § 529.

(79) Sections 542, 543, and 544 .- Def-
inition of Personal Holding Company;
Personal Holding Company Income;
Rules for Determining Stock Ownership .-
Whether the application of § 544(a) causes a
corporation to meet the stock ownership re-
quirements under § 542(a)(2), § 543(a)(4),
§ 543(a)(6), or § 543(a)(7).

(80) Section 641 .- Imposition of
Tax .- Whether the period of administra-
tion or settlement of an estate or a trust
(other than a trust described in § 664) is
reasonable or unduly prolonged.

(81) 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.

(82) Section 664 .- Charitable Remain-
der Trusts .- Whether the settlement of a
charitable remainder trust upon the termi-
nation of the noncharitable interest is
made within a reasonable period of time.

(83) Section 664 .- See section
3.01(74), above.

(84) Section 671 .- Trust Income, De-
ductions, and Credits Attributable to
Grantors and Others as Substantial Own-
ers .- Whether the grantor will be consid-
ered the owner of any portion of a trust
when (i) substantially all of the trust cor-
pus 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.

(85) Section 704(b) .- Determination
of Distributive Share .- Whether the allo-
cation to a partner under the partnership
agreement of income, gain, loss, deduc-
tion, or credit (or an item thereof) has
substantial economic effect or is in accor-
dance with the partner's interest in the
partnership.

(86) Section 761 .- Terms Defined .-
Matters relating to the validity of a part-
nership or whether a person is a partner in
a partnership.

(87) Section 761 .- See section
3.01(14), above.

(88) Section 856 .- Definition of Real
Estate Investment Trust .- Whether a cor-
poration 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
corporations are integrated.

(89) Section 1001 .- Determination of
Amount of and Recognition of Gain or
Loss .- Whether the termination of a char-
itable remainder trust before the end of the
trust term as defined in the trust's govern-
ing instrument, in a transaction in which
the trust beneficiaries receive their actuar-
ial shares of the value of the trust assets, is
treated as a sale or other disposition by the
beneficiaries of their interests in the trust.

(90) Section 1001 .- See section
3.01(9), above.

(91) Section 1033 .- Involuntary Con-
versions .- Whether the replacement or pro-
posed replacement of compulsorily or invol-
untarily converted property does or does not
qualify under § 1033(a), if the taxpayer has
already filed a Federal tax return for the first
taxable year in which any of the gain was
realized from the converted property. The
Service may issue a determination letter in
this case. See section 12.01 of Rev. Proc.
2018-1, this Bulletin.

(92) Section 1036 .- See section
3.01(53), above.

(93) Section 1221 .- Capital Asset De-
fined .- Whether specialty stock allocated
to an investment account by a registered

specialist on a national securities ex-
change is a capital asset.

(94) Section 1221 .- Capital Asset De-
fined .- Whether the termination of a
charitable remainder trust before the end
of the trust term as defined in the trust's
governing instrument, in a transaction in
which the trust beneficiaries receive their
actuarial shares of the value of the trust
assets, is treated as a sale or exchange of
a capital asset by the beneficiaries.

(95) Section 1239 .- See section
3.01(51), above.

(96) Section 1361 .- S Corporation De-
fined .- Whether a state law limited part-
nership electing under § 301.7701-3 to be
classified as an association taxable as a
corporation has more than one class of
stock for purposes of § 1361(b)(1)(D).
The Service will treat any request for a
ruling on whether a state law limited part-
nership is eligible to elect S corporation
status as a request for a ruling on
whether the partnership complies with
§ 1361(b)(1)(D).

(97) Section 1502 .- Regulations .- If
a member of an affiliated group fails to
file Form 1122 or fails to join in the mak-
ing of a consolidated return due to a mis-
take of law or fact, or inadvertence,
whether such member will be treated as if
it had filed a Form 1122. The Service may
issue a determination letter in this case.
See section 12.01 of Rev. Proc. 2018-1,
this Bulletin. But see also section 6.07 of
this revenue procedure.

(98) Section 1502 .- See sections
3.01(31) and (41), above.

(99) Section 1551 .- Disallowance of
the Benefits of the Graduated Corporate
Rates and Accumulated Earnings Cred-
it .- Whether a transfer is within § 1551.

(100) Section 2031 .- Definition of
Gross Estate .- Actuarial factors for valu-
ing interests in the prospective gross es-
tate of a living person.

(101) Section 2055 .- Transfers for
Public, Charitable, and Religious Uses .-
Whether a charitable contribution deduc-
tion under § 2055 is allowed for the trans-
fer of an interest in a limited partnership
or a limited liability company taxed as a
partnership to an organization described
in § 2055(a).

(102) Section 2512 .- Valuation of
Gifts .- Actuarial factors for valuing pro-
spective or hypothetical gifts of a donor.

(103) Section 2522 .- Charitable and
Similar Gifts .- Whether a charitable con-
tribution deduction under § 2522 is allow-
able for a transfer of an interest in a lim-
ited partnership or a limited liability
company taxed as a partnership to an or-
ganization described in § 2522(a).

(104) Section 2601 .- Tax Imposed .-
Whether a trust exempt from generation-
skipping transfer (GST) tax under
§ 26.2601-1(b)(1), (2), or (3) of the
Generation-Skipping Transfer Tax Regu-
lations will retain its GST exempt status
when there is a modification of a trust,
change in the administration of a trust, or
a distribution from a trust in a factual
scenario that is similar to a factual sce-
nario set forth in one or more of the
examples contained in § 26.2601-
1(b)(4)(i)(E).

(105) Sections 3121, 3306, and
3401 .- Definitions .- For purposes of de-
termining prospective employment status,
whether an individual will be an employee
or an independent contractor. A ruling
with regard to prior employment status
may be issued.

(106) Sections 3121, 3306, and
3401 .- Definitions .- Who is the em-
ployer of an "employee-owner" as defined
in § 269A(b)(2).

(107) Sections 3121, 3306, and
3401 .- Definitions .- For purposes of de-
termining employment classification pur-
suant to the filing of Form SS-8, Deter-
mination of Worker Status for Purposes of
Federal Employment Taxes and Income
Tax Withholding, whether a worker is a
bona fide partner and, therefore, not an
employee of the business.

(108) Section 4052(f)(1) .- Certain Re-
pairs and Modifications Not Treated as
Manufacture .- Whether a chassis re-
paired or modified using a "glider kit" is
treated as manufactured or produced if the
cost of the repairs or modifications does
not exceed 75 percent of the retail price of
a comparable new chassis.

(109) Section 4191 .- Medical Devic-
es .- Whether a device (as defined in sec-
tion 201(h) of the Federal Food, Drug, and
Cosmetic Act) intended for humans is not
a "taxable medical device" within the
meaning of § 4191(b)(1) due to the appli-
cation of the exemption provided in
§ 4191(b)(2) for eyeglasses, contact
lenses, hearing aids, and any other medi-

cal device determined by the Secretary to
be of a type which is generally purchased
by the general public at retail for individ-
ual use.

(110) Section 4216(b) .- Constructive
Sale Price .- Whether a particular meth-
odology for determining the tax base is
allowable under the constructive sale
price rules.

(111) Sections 4375, 4376, and
4377 .- Health Insurance; Self-Insured
Health Plans; Definitions and Special
Rules .- Whether an arrangement is a
specified health insurance policy or an
applicable self-insured health plan that is
subject to the fee applicable to such ar-
rangements.

(112) Sections 4940 and 4942 .- Ex-
cise Tax Based on Investment Income;
Taxes on Failure to Distribute Income .-
Whether an organization is or continues to
be an "operating foundation" described in
§ 4942(j)(3) or an "exempt operating
foundation" described in § 4940(d)(2), in-
cluding, for example, whether changes in
an organization's activities or operations
will affect or jeopardize the organization's
status as an operating foundation or ex-
empt operating foundation. The Associate
Chief Counsel (TEGE) will rule, however,
on specific legal questions related to
§§ 4940(d)(2) or 4942(j)(3) that are not
otherwise described in this revenue proce-
dure. See Rev. Proc. 2018-5, this Bulle-
tin, for the procedures for obtaining deter-
mination letters on foundation status
under §§ 4940 and 4942.

(113) Section 4941 .- Taxes on Self-
Dealing .- Whether transactions during
the administration of an estate or trust
meet the requirements of the exception to
§ 4941 set forth in § 53.4941(d)-1(b)(3)
of the Private Foundation Excise Tax
Regulations, in cases in which a disqual-
ified person issues a promissory note in
exchange for property of an estate or trust.

(114) Section 4941 .- See section
3.01(74), above.

(115) Section 4942 .- See section
3.01(112), above.

(116) Section 4945 .- See section
3.01(74), above.

(117) Section 4958 .- Taxes on Excess
Benefit Transactions .- Whether a com-
pensation or property transaction satisfies
the rebuttable presumption that the trans-
action is not an excess benefit transaction

as described in § 53.4958-6 of the Excess
Benefit Transactions Excise Tax Regula-
tions.

(118) Section 4975(d) .- Exemp-
tions .- Whether the renewal, extension,
or refinancing of an exempt loan satisfies
the requirements of § 4975(d)(3). Also,
whether the pre-payment of employee
stock ownership plan (ESOP) loans satis-
fies the requirements of § 4975(d)(3) other
than with respect to plan termination.

(119) Section 4980B .- Failure to Sat-
isfy Continuation Coverage Requirements
of Group Health Plans .- Whether an ac-
tion is "gross misconduct" within the
meaning of § 4980B(f)(3)(B). (See section
3.05 of Rev. Proc. 87-28, 1987-1 C.B.
770, 771.)

(120) Section 4980H .- Shared Re-
sponsibility for Employers Regarding
Health Coverage .- Whether an employer
is required to make an assessable payment
under § 4980(H)(a) or (b).

(121) Section 6166 .- Extension of
Time for Payment of Estate Tax Where
Estate Consists Largely of Interest in
Closely Held Business .- Requests in-
volving § 6166 if there is no decedent.

(122) Section 6901 .- Transferred As-
sets .- Whether a taxpayer is liable for tax
as a transferee.

(123) Section 7216 .- Disclosure or
Use of Information by Preparers of Re-
turns .- Whether a criminal penalty is ap-
plicable for any disclosure or use of infor-
mation by preparers of returns.

(124) Section 7701 .- Definitions .-
The classification of an instrument that
has certain voting and liquidation rights in
an issuing corporation but whose dividend
rights are determined by reference to the
earnings of a segregated portion of the
issuing corporation's assets, including as-
sets held by a subsidiary.

(125) Section 7701 .- Definitions .-
The classification for Federal tax purposes
of a fideicomiso or other land trust created
under local law, applying the principles of
Rev. Rul. 2013-14, 2013-26 I.R.B. 1267,
or Rev. Rul. 92-105, 1992-2 C.B. 204.

(126) Section 7701 .- See section
3.01(14), above.

(127) Section 7704 .- Certain Publicly
Traded Partnerships Treated as Corpora-
tions .- Whether interests in a partnership
that are not traded on an established secu-
rities market (within the meaning of

§ 7704(b) and § 1.7704-1(b) of the Pro-
cedure and Administration Regulations)
are readily tradable on a secondary market
or the substantial equivalent thereof under
§ 1.7704-1(c)(1). This specifically in-
cludes, but is not limited to, whether an
investment fund or portfolio supporting
variable contract arrangements of life in-
surance companies is a publicly traded
partnership.

(128) Section 9815 .- Additional Mar-
ket Reforms .- Whether an insured group
health plan satisfies the requirements of
§ 2716 of the Public Health Service Act,
Prohibition on Discrimination in Favor of
Highly Compensated Individuals, as in-
corporated into the Code by § 9815.

### .02 General Areas.

(1) Whether the economic substance
doctrine is relevant to any transaction or
whether any transaction complies with the
requirements of § 7701(o).

(2) The results of transactions that lack
a bona fide business purpose or have as
their principal purpose the reduction of
Federal taxes.

(3) A matter upon which a court deci-
sion adverse to the Government has been
handed down and the question of follow-
ing the decision or litigating further has
not yet been resolved.

(4) A matter involving alternate plans
of proposed transactions or involving hy-
pothetical situations.

(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) A matter involving the regulations
governing practice before the Service un-
der 31 CFR Part 10 (reprinted as Treasury
Department Circular No. 230).

(7) Whether a proposed transaction
would subject the taxpayer to a criminal
penalty.

(8) Whether a completed transaction
can be rescinded for Federal income tax
purposes.

(9) The income tax (including unre-
lated business income tax) or excise tax
consequences of the contribution of stock
options to, or their subsequent exercise
from, plans described in Part 1 of Sub-

chapter D of Chapter 1 of Subtitle A of the
Code.

(10) Questions that the Service deter-
mines, in its discretion, should not be an-
swered in the general interests of sound
tax administration, including due to re-
source constraints.

(11) Any frivolous issue, as that term is
defined in section 6.10 of Rev. Proc.
2018-1, this Bulletin.

(12) A request that does not comply
with the provisions of Rev. Proc. 2018-1,
this Bulletin.

# SECTION 4. AREAS IN WHICH RULINGS OR DETERMINATION LETTERS WILL NOT ORDINARILY BE ISSUED

.01 Specific Questions and Problems.

(1) Sections 38, 39, 46, and 48 .- Gen-
eral Business Credit; Carryback and Car-
ryforward of Unused Credits; Amount of
Credit; Energy Credit .- Application of
these sections if the formal ownership
of property is in a party other than the
taxpayer, except when title is held merely
as security.

(2) Section 61 .- Gross Income De-
fined .- Determination as to who is the
true owner of property in cases involving
the sale of securities, or participation in-
terests therein, if the purchaser has the
contractual right to cause the securities, or
participation interests therein, to be pur-
chased by either the seller or a third party.

(3) Sections 61 and 163 .- Gross In-
come Defined; Interest .- Determinations
as to who is the true owner of property or
the true borrower of money in cases in
which the formal ownership of the prop-
erty, or the liability for the indebtedness,
is in another party.

(4) Section 62(c) .- Certain Arrange-
ments Not Treated as Reimbursement Ar-
rangements .- Whether amounts related to
a salary reduction and paid under a pur-
ported reimbursement or other expense
allowance arrangement will be treated as
paid under an "accountable plan" in ac-
cordance with § 1.62-2(c)(2).

(5) Sections 83 and 451 .- Property
Transferred in Connection with Perfor-
mance of Services; General Rule for Tax-
able Year of Inclusion .- When compen-
sation is realized by a person who, in
connection with the performance of ser-

vices, is granted a nonstatutory option
without a readily ascertainable 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.

(6) Sections 101 and 7702 .- Certain
Death Benefits; Life Insurance Contract
Defined .- Whether amounts received un-
der an arrangement with an entity that is
not regulated as an insurance company
may be treated as received under a "life
insurance contract" within the meaning of
§§ 101(a) and 7702.

(7) Section 103 .- Interest on State and
Local Bonds .- Whether the interest 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 otherwise not expended for a
governmental purpose for an extended pe-
riod 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.

(8) 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 meaning of former
§ 103(c)(2) solely by reason of the invest-
ment of the bond proceeds in acquired
nonpurpose obligations at a materially
higher yield more than 3 years after issu-
ance of the bonds or 5 years after issuance
of the bonds in the case of construction
issues described in former § 1.103-
13(a)(2)(ii)(E) or § 1.148-2(e)(2)(ii).

(9) Section 141 .- Private Activity
Bond; Qualified Bond .- Whether state or
local bonds will meet the "private busi-
ness 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 pur-
chases 30 percent or more of the actual
output of the facility but 10 percent or less
of the available output of the facility as
defined in § 1.141-7(b)(1). In similar sit-
uations, the Service will not ordinarily
issue rulings or determination letters con-
cerning questions arising under para-
graphs (3), (4), and (5) of § 141(b).

(10) Sections 142 and 144(a) .- Ex-
empt Facility Bond; Qualified Small Issue
Bond .- Whether an issue of private activ-
ity 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
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 nonqualified costs equals
more than 5 percent of the net pro-
ceeds, as defined in § 150(a)(3).

(11) Section 148 .- Arbitrage .-
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 former
§ 1.103-13(g) (issued under former
§ 103(c)) or replaced proceeds described
in § 148(a)(2) (or former § 103(c)(2)(B)).

(12) Sections 162 and 262 .- Trade or
Business Expenses; Personal, Living, and
Family Expenses .- Whether expenses are
nondeductible commuting expenses, ex-
cept for situations governed by Rev. Rul.
99-7, 1999-1 C.B. 361.

(13) Section 162(m) .- Certain Exces-
sive Employee Remuneration .- Whether
the deduction limit under § 162(m) ap-
plies to compensation attributable to ser-
vices performed for a related partnership.

(14) Section 163 .- See section
4.01(3), above.

(15) Section 165 .- Losses .- Whether
stock in a corporation has been aban-
doned.

(16) Section 167 .- Depreciation.

(i) Useful lives of assets.

(ii) Depreciation rates.

(iii) Salvage value of assets.

(17) Sections 167 and 168 .- Depreci-
ation; Accelerated Cost Recovery Sys-
tem .- Application of those sections in
which the formal ownership of property is
in a party other than the taxpayer except
when title is held merely as security.

(18) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a trans-
fer to a pooled income fund described in
§ 642(c)(5) qualifies for a charitable contri-
bution deduction under § 170(f)(2)(A).

(19) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a
transfer to a charitable remainder trust de-
scribed in § 664 that provides for annuity
or unitrust payments for one or two mea-
suring lives qualifies for a charitable de-
duction under § 170(f)(2)(A).

(20) Section 170 .- Charitable, Etc.,
Contributions and Gifts .- Whether a tax-
payer who transfers property to a charita-
ble organization and thereafter leases back
all or a portion of the transferred property
may deduct the fair market value of the
property transferred and leased back as a
charitable contribution.

(21) Section 216 .- Deduction of Taxes,
Interest, and Business Depreciation by Co-
operative Housing Corporation Tenant-
Stockholder .- If a cooperative housing cor-
poration (CHC), as defined in § 216(b)(1),
transfers an interest in real property to a
corporation (not a CHC) in exchange for
stock or securities of the transferee corpora-
tion, which engages in commercial activity
with respect to the real property interest
transferred, whether (i) the income of the
transferee corporation derived from the
commercial activity and (ii) any cash or
property (attributable to the real property
interest transferred) distributed by the trans-
feree corporation to the CHC will be con-
sidered 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).

(22) Section 262 .- See section
4.01(12), above.

(23) Section 265(a)(2) .- Interest .-
Whether indebtedness is incurred or con-
tinued to purchase or carry obligations the
interest on which is wholly exempt from
the taxes imposed by Subtitle A.

(24) 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.

(25) Section 302(b)(4) and (e) .- Re-
demption from Noncorporate Shareholder
in Partial Liquidation; Partial Liquidation
Defined .- Whether a distribution will
qualify as a distribution in partial liquida-
tion under § 302(b)(4) and (e)(1)(A), un-
less it results in a 20 percent or greater
reduction in (i) gross revenue, (ii) net fair

market value of assets, and (iii) employ-
ees. (Partial liquidations that qualify as
§ 302(e)(2) business terminations are not
subject to this provision.)

(26) Section 306 .- Dispositions of
Certain Stock .- Whether the distribution,
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 Fed-
eral income taxes within the meaning of
§ 306(b)(4).

(27) Sections 331 and 346(a) .- Gain
or Loss to Shareholders in Corporate Liq-
uidations; Complete Liquidation .- The
tax effect of the liquidation of a corpora-
tion 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.

(28) Section 351 .- Transfer to Corpo-
ration 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 corporation in exchange
for stock or securities of the transferee
corporation, if the transferee engages in
commercial activity with respect to the
real property interest transferred.

(29) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Whether the active business
requirement of § 355(b) is met when,
within the 5-year period described in
§ 355(b)(2)(B), a distributing corporation
acquired control of a controlled corpora-
tion as a result of the distributing corpo-
ration transferring cash or other liquid or
inactive assets to the controlled corpora-
tion in a transaction in which gain or loss
was not recognized as a result of the trans-
fer meeting the requirements of § 351(a)
or § 368(a)(1)(D).

(30) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Any issue relating to the qual-
ification, under § 355 and related provi-
sions, of a distribution, or another
distribution which is part of the same plan
or series of related transactions, if, imme-
diately after any such distribution, the fair
market value of the gross assets of the
trade(s) or business(es) on which the dis-
tributing corporation or the controlled cor-
poration relies to satisfy the active trade or
business requirement of § 355(b) is less

than five percent of the fair market value
of the total gross assets of such corpora-
tion.

For purposes of determining the fair
market value of the total gross assets of
such corporation and of the gross assets of
such trade(s) or business(es), (i) all mem-
bers of a separate affiliated group, within
the meaning of § 355(b)(3)(B), are treated
as one corporation; and (ii) if the distrib-
uting corporation or the controlled corpo-
ration relies on an active trade or business
of a partnership for purposes of § 355(b),
such corporation is treated as owning its
ratable share of the gross assets of the
partnership.

This section 4.01(30) does not apply if (i)
all the stock of the controlled corporation that
is distributed in the distribution is distributed to
one or more members of the affiliated group,
as defined in § 243(b)(2)(A), of which the
distributing corporation is a member; and (ii)
such distribution is not part of a plan or series
of related transactions pursuant to which stock
of any corporation will be distributed outside
such affiliated group in a distribution de-
scribed in this section 4.01(30) or section
5.01(3) of this revenue procedure.

(31) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Any issue under § 355(e) other
than whether a distribution and an acqui-
sition are part of a plan (i.e., any non-plan
issue). Notwithstanding the preceding
sentence, the Service generally will rule
on a non-plan issue or issues (e.g.,
whether a corporation constitutes a prede-
cessor of distributing) if an adverse ruling
on such non-plan issue or issues would
result in there being a direct or indirect
acquisition by one or more persons of
stock representing a 50-percent or greater
interest in the distributing corporation or
the controlled corporation that is part of a
plan under § 355(e).

(32) Section 441(i) .- Taxable Year of
Personal Service Corporations .- Whether
the principal activity of the taxpayer dur-
ing the testing period for the taxable year
is the performance of personal services
within the meaning of § 1.441-
3(c)(1)(iii).

(33) Section 448(d)(2)(A) .- Limita-
tion on Use of Cash Method of Account-
ing; Qualified Personal Service Corpora-
tion .- Whether 95 percent or more of the
time spent by employees of the corpora-

tion, serving in their capacity as such, is
devoted to the performance of services
within the meaning of § 1.448-
1T(e)(4)(i).

(34) Section 451 .- General Rule for
Taxable Year of Inclusion .- The tax con-
sequences of a nonqualified deferred com-
pensation arrangement using a grantor
trust if the trust fails to meet the require-
ments of Rev. Proc. 92-64, 1992-2 C.B.
422.

(35) Section 451 .- General Rule for
Taxable Year of Inclusion .- The income
tax consequences as a result of being a
beneficiary of a trust that an Indian tribe
(as defined in 25 U.S.C. § 2703(5)) estab-
lishes to receive and invest per capita
payments for its members under the In-
dian Gaming Regulatory Act (25 U.S.C.
§§ 2701 through 2721).

(36) Section 451 .- See section
4.01(5), above.

(37) 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.)

(38) Section 642 .- Special Rules for
Credits and Deductions .- Whether a
pooled income fund satisfies the require-
ments described in § 642(c)(5).

(39) Section 664 .- Charitable Remain-
der Trusts .- Whether a charitable remain-
der trust that provides for annuity or uni-
trust payments for one or two measuring
lives or for annuity or unitrust payments
for a term of years satisfies the require-
ments described in § 664.

(40) Section 664 .- Charitable Remain-
der Trusts .- Whether a trust that will cal-
culate the unitrust amount under
§ 664(d)(3) qualifies as a § 664 charitable
remainder trust when a grantor, a trustee,
a beneficiary, or a person related or sub-
ordinate to a grantor, a trustee, or a ben-
eficiary can control the timing of the
trust's receipt of trust income from a part-
nership or a deferred annuity contract to
take advantage of the difference between
trust income under § 643(b) and income
for Federal income tax purposes for the
benefit of the unitrust recipient.

(41) Sections 671 to 679 .- Grantors
and Others Treated as Substantial Own-
ers .- In a nonqualified, unfunded de-
ferred compensation arrangement de-
scribed in Rev. Proc. 92-64, 1992-2 C.B.

422, the tax consequences of the use of a
trust, other than the model trust described
in that revenue procedure.

(42) Sections 671 to 679 .- Grantors
and Others Treated as Substantial Own-
ers .- Whether an Indian tribe (as defined
in 25 U.S.C. § 2703(5)) that establishes a
trust to receive and invest per capita pay-
ments for its members under the Indian
Gaming Regulatory Act (25 U.S.C.
§§ 2701-2721) is the grantor and owner
of the trust.

(43) Section 678 .- Person Other than
Grantor Treated as Substantial Owner .-
Whether a person will be treated as the
owner of any portion of a trust over which
that person has a power to withdraw the
trust property (or had such power prior to
a release or modification, but retains other
powers which would cause that person to
be the owner of the trust under § 671 if the
person were the grantor), other than a
power which would constitute a general
power of appointment within the meaning
of § 2041, if the trust purchases the prop-
erty from that person with a note and the
value of the assets with which the trust
was funded by the grantor is nominal
compared to the value of the property
purchased.

(44) Section 851 .- Definition of Reg-
ulated Investment Company .- Any issue
relating to the treatment of a corporation
as a regulated investment company under
§ 851 and related provisions that requires
a determination whether a financial instru-
ment or position is a security as defined in
the Investment Company Act of 1940.

(45) Section 856 .- Definition of Real
Estate Investment Trust .- Whether an
outdoor advertising display constitutes
real property for purposes of § 856. How-
ever, if the real estate investment trust has
made an election under § 1.1033(g)-1(b),
the Service may rule on whether an asset
that is not within the scope of the election,
but is related to the outdoor advertising
display, constitutes real property for pur-
poses of § 856.

(46) Section 1031(f) .- Special Rules
for Exchanges Between Related Per-
sons .- Except in the case of (i) a transac-
tion involving an exchange of undivided
interests in different properties that results
in each taxpayer holding either the entire
interest in a single property or a larger
undivided interest in any of the properties

or (ii) a disposition of property in a non-
recognition transaction, whether an ex-
change described in § 1031(f) involving
related parties, or a subsequent disposition
of property involved in the exchange, has
as one of its principal purposes the avoid-
ance of Federal income tax, or is part of a
transaction (or series of transactions)
structured to avoid the purposes of
§ 1031(f).

(47) Section 1362 .- Election; Revoca-
tion; Termination .- All situations in
which the Service has provided an auto-
matic approval procedure or administra-
tive procedure for an S corporation to
obtain relief for late S corporation, quali-
fied subchapter S subsidiary, qualified
subchapter S trust, or electing small busi-
ness trust elections. See Rev. Proc. 2013-
30, 2013-36 I.R.B. 173. (For instructions
on how to seek this relief, see the preced-
ing revenue procedure.)

(48) 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 sub-
sidiary, if the transferee engages in com-
mercial activity with respect to the real
property interest transferred to it by the
parent.

(49) Sections 2035, 2036, 2037, 2038,
and 2042 .- Adjustments for Certain Gifts
Made Within Three Years of Decedent's
Death; Transfers with Retained Life Es-
tate; Transfers Taking Effect at Death;
Revocable Transfers; Proceeds of Life In-
surance .- Whether trust assets are includ-
ible in a trust beneficiary's gross estate
under § 2035, 2036, 2037, 2038, or 2042
if the beneficiary sells property (including
insurance policies) to the trust or dies
within 3 years of selling such property to
the trust, and (i) the beneficiary has a
power to withdraw the trust property (or
had such power prior to a release or mod-
ification, but retains other powers which
would cause that person to be the owner if
the person were the grantor), other than a
power which would constitute a general
power of appointment within the meaning
of § 2041, (ii) the trust purchases the
property with a note, and (iii) the value of
the assets with which the trust was funded
by the grantor is nominal compared to the
value of the property purchased.

(50) Section 2055 .- Transfers for Pub-
lic, Charitable, and Religious Uses .-
Whether a transfer to a pooled income fund
described in § 642(c)(5) qualifies for a char-
itable deduction under § 2055(e)(2)(A).

(51) Section 2055 .- Transfers for Pub-
lic, Charitable, and Religious Uses .-
Whether a transfer to a charitable remain-
der trust described in § 664 that provides
for annuity or unitrust payments for one or
two measuring lives or a term of years
qualifies for a charitable deduction under
§ 2055(e)(2)(A).

(52) Section 2501 .- Imposition of
Tax .- Whether the sale of property (in-
cluding insurance policies) to a trust by a
trust beneficiary will be treated as a gift
for purposes of § 2501 if (i) the benefi-
ciary has a power to withdraw the trust
property (or had such power prior to a
release or modification, but retains other
powers which would cause that person to
be the owner if the person were the
grantor), other than a power which would
constitute a general power of appointment
within the meaning of § 2041, (ii) the trust
purchases the property with a note, and
(iii) the value of the assets with which the
trust was funded by the grantor is nominal
compared to the value of the property
purchased.

(53) Section 2503 .- Taxable Gifts .-
Whether the transfer of property to a trust
will be a gift of a present interest in prop-
erty when (i) the trust corpus consists or
will consist substantially of insurance pol-
icies 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 transfers
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.

(54) Section 2514 .- Powers of Ap-
pointment .- If the beneficiaries of a trust
permit a power of withdrawal to lapse,
whether § 2514(e) will be applicable 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 benefi-
ciaries have the power to withdraw, on
demand, any additional transfers 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.

(55) Section 2522 .- Charitable and
Similar Gifts .- Whether a transfer to a
pooled income fund described in
§ 642(c)(5) qualifies for a charitable de-
duction under § 2522(c)(2)(A).

(56) 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
or a term of years qualifies for a charitable
deduction under § 2522(c)(2)(A).

(57) Section 2601 .- Tax Imposed .-
Whether a trust that is exempt from the
application of the generation-skipping
transfer tax because it was irrevocable on
September 25, 1985, will lose its exempt
status if the situs of the trust is changed
from the United States to a situs outside of
the United States.

(58) Section 2702 .- Special Valuation
Rules in Case of Transfers of Interests in
Trusts .- Whether annuity interests are
qualified annuity interests under § 2702 if
the amount of the annuity payable annu-
ally is more than 50 percent of the initial
net fair market value of the property trans-
ferred to the trust, or if the value of the
remainder interest is less than 10 percent
of the initial net fair market value of the
property transferred to the trust. For pur-
poses of the 10 percent test, the value of
the remainder interest is the present value
determined under § 7520 of the right to
receive the trust corpus at the expiration
of the term of the trust. The possibility
that the grantor may die prior to the expi-
ration of the specified term is not taken
into account, nor is the value of any re-

version retained by the grantor or the
grantor's estate.

(59) Section 2702 .- Special Valuation
Rules in Case of Transfers of Interests in
Trusts .- Whether a trust with one term
holder satisfies the requirements of
§ 2702(a)(3)(A) and § 25.2702-5(c) to be
a qualified personal residence trust.

(60) Section 2702 .- Special Valuation
Rules in Case of Transfers of Interests in
Trusts .- Whether the sale of property (in-
cluding insurance policies) to a trust by a
trust beneficiary is subject to § 2702 if
(i) the beneficiary has a power to with-
draw the trust property (or had such power
prior to a release or modification, but re-
tains other powers which would cause that
person to be the owner if the person were
the grantor), other than a power which
would constitute a general power of ap-
pointment within the meaning of § 2041,
(ii) the trust purchases the property with a
note, and (iii) the value of the assets with
which the trust was funded by the grantor
is nominal compared to the value of the
property purchased.

(61) Section 3121 .- Definitions .- De-
terminations as to which of two entities,
under common law rules applicable in de-
termining the employer-employee rela-
tionship, is the employer, when one entity
is treating the worker as an employee.

(62) Section 7702 .- See section
4.01(6), above.

.02 General Areas.

(1) Any matter in which the determi-
nation 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. Although it is
generally inappropriate for the Service to
issue a letter ruling on whether an interest
in a corporation is stock or indebtedness,
there may be instances in which the Ser-
vice may issue a letter ruling. For exam-
ple, the Service may issue a letter ruling
with respect to an instrument issued by a
domestic corporation if (i) the taxpayer
believes that the facts strongly support the
classification of the instrument as stock
and (ii) the taxpayer can demonstrate that
there are unique and compelling reasons
to justify the issuance of a letter ruling.
Before preparing the letter ruling request,
the taxpayer should call the Office of As-
sociate Chief Counsel having jurisdiction

for the matters on which the taxpayer is
seeking a letter ruling to discuss whether
the Service will consider issuing a letter
ruling for a particular factual situation. To
determine which Associate office has ju-
risdiction over a particular issue see sec-
tion 3 of Rev. Proc. 2018-1, this Bulletin.
For a list of telephone numbers for the
different Associate offices, see section
10.07 of Rev. Proc. 2018-1.

(2) Situations in which the requested
ruling deals with only part of an integrated
transaction. Generally, a letter ruling will
not be issued on only part of an integrated
transaction. If, however, a part of a trans-
action falls under a no-rule area, a letter
ruling on other parts of the transaction
may be issued. Before preparing the letter
ruling request, the taxpayer should call the
Office of Associate Chief Counsel having
jurisdiction for the matters on which the
taxpayer is seeking a letter ruling to dis-
cuss whether a letter ruling will be issued
on part of the transaction. To determine
which Associate office has jurisdiction
over a particular issue, see section 3 of
Rev. Proc. 2018-1, this Bulletin. For a list
of telephone numbers for the different As-
sociate offices, see section 10.07 of Rev.
Proc. 2018-1.

Notwithstanding the previous para-
graph, in connection with transactions de-
scribed in § 332, 351, 355, or 1036 and
reorganizations within the meaning of
§ 368, the Associate Chief Counsel (Cor-
porate) may issue a letter ruling on part of
an integrated transaction if and to the ex-
tent that the transaction presents a signif-
icant issue (within the meaning of section
3.01(53)). See section 6.03(2) of Rev.
Proc. 2018-1.

(3) Situations in which two or more
items or sub-methods of accounting are
interrelated. If two or more items or sub-
methods of accounting are interrelated, or-
dinarily a letter ruling will not be issued
on a change in accounting method involv-
ing 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 ques-
tion 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 liti-

gation among the parties affected by the
transaction, except for transactions in-
volving bankruptcy reorganizations.

(7) (a) Situations in which the taxpayer
or a related party is domiciled or orga-
nized in a foreign jurisdiction with which
the United States does not have an effec-
tive mechanism for obtaining tax informa-
tion with respect to civil tax examinations
and criminal tax investigations, which
would preclude the Service from obtain-
ing information located in such jurisdic-
tion that is relevant to the analysis or
examination of the tax issues involved in
the ruling request.

(b) The provisions of subsection (a)
above do not apply if the taxpayer or
affected related party (i) consents to the
disclosure of all relevant information re-
quested by the Service in processing the
ruling request or in the course of an ex-
amination in order to verify the accuracy
of the representations made and to other-
wise analyze or examine the tax issues
involved in the ruling request, and (ii)
waives all claims to protection of bank or
commercial 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 inef-
fective or of no force and effect, then the
Service may retroactively rescind any rul-
ing rendered in reliance on such consent.

(8) A matter involving the Federal tax
consequences of any proposed Federal,
state, local, municipal, or foreign legisla-
tion. The Service may provide general
information in response to an inquiry.
However, the Office of Associate Chief
Counsel (TEGE) may issue letter rulings
regarding the effect of proposed state, lo-
cal, or municipal legislation upon an eli-
gible deferred compensation plan under
§ 457(b) provided that the letter ruling
request relating to the plan complies with
the other requirements of Rev. Proc.
2018-1, this Bulletin.

(9) Except with respect to a Covered
Transaction within the meaning of section
2.03(1)(a) of Rev. Proc. 2017-52,
2017-41 I.R.B. 283, a letter ruling will
not be issued with respect to an issue that
is clearly and adequately addressed by
statute, regulations, decision of a court,

revenue rulings, revenue procedures, no-
tices, or other authority published in the
Internal Revenue Bulletin (Comfort Rul-
ing). However, except with respect to is-
sues under §§ 332, 351, 368, and 1036 and
the tax consequences resulting from the
application of such Code sections (see
generally section 6.03(2) of Rev. Proc.
2018-1, this Bulletin), an Associate office
may in its discretion issue a Comfort Rul-
ing if the Associate office is otherwise
ruling on another issue arising in the same
transaction.

(10) Whether an amount received (in
periodic payments or as a lump sum) in
connection with a legal action or a settle-
ment of a legal action is properly allocated
(including an allocation of all payments to
one category) to recovery of capital, com-
pensatory damages, punitive damages,
dividends, interest, back pay, etc., for Fed-
eral tax purposes.

(11) The treatment or effects of hook
equity, including as a result of its issu-
ance, ownership, or redemption. This sec-
tion 4.02(11) ordinarily will not apply if
(i) an interest's status as hook equity is
only transitory, such as in a triangular
reorganization, or (ii) the treatment of the
hook equity is not relevant to the treat-
ment of the overall transaction and issue
presented. For this purpose, "hook equity"
means an ownership interest in a business
entity (such as stock in a corporation) that
is held by another business entity in which
at least 50 percent of the interests (by vote
or value) in such latter entity are held
directly or indirectly by the former entity.
However, if an entity directly or indirectly
owns all of the equity interests in another
entity, the equity interests in the latter
entity are not hook equity.

(12) Whether a tax-qualified plan satis-
fies the requirements for qualification under
§§ 401 through 420 and § 4975(e)(7). These
matters are generally handled through the
Employee Plans Determinations program as
provided in Rev. Proc. 2018-4, this Bulle-
tin, Rev. Proc. 2016-37, 2016-29 I.R.B.
136, and Rev. Proc. 2015-36, 2015-27
I.R.B. 20. Notwithstanding the preceding
sentence, the Office of Associate Chief
Counsel (TEGE) may issue a ruling if (i) the
taxpayer has demonstrated to the satisfac-
tion of the Office of Associate Chief Coun-
sel (TEGE) that the qualification issue in-
volved is unique and requires immediate

guidance, (ii) as a practical matter, it is not
likely that such issue will be addressed
through the determination letter process,
and (iii) the Office determines that it is in the
interest of good tax administration to pro-
vide guidance to the taxpayer with respect to
such qualification issue.

(13) Any issue that is being considered
by the Pension Benefit Guaranty Corpora-
tion (PBGC) or the Department of Labor
(DOL), and involves the same taxpayer,
will be issued at the discretion of the
Office of Associate Chief Counsel
(TEGE).

SECTION 5. AREAS UNDER
STUDY IN WHICH RULINGS OR
DETERMINATION LETTERS WILL
NOT BE ISSUED UNTIL THE
SERVICE RESOLVES THE ISSUE
THROUGH PUBLICATION OF A
REVENUE RULING, A REVENUE
PROCEDURE, REGULATIONS, OR
OTHERWISE

.01 Specific Questions and Problems.

(1) Sections 302 and 304 .- Distribu-
tions in Redemption of Stock; Redemp-
tions Through Use of Related Corpora-
tions .- Treatment of basis in a § 302/304
redemption.

(2) Sections 351, 358, and 362 .-
Transfer to Corporation Controlled by
Transferor; Basis to Distributees; Basis to
Corporations .- The issues described as
being under study in Rev. Rul. 2006-2,
2006-1 C.B. 261.

(3) Section 355 .- Distribution of
Stock and Securities of a Controlled Cor-
poration .- Any issue relating to the qual-
ification, under § 355 and related provi-
sions, of a distribution, or another
distribution which is part of the same plan
or series of related transactions, if, imme-
diately after any such distribution, all of
the following conditions exist: (i) the fair
market value of the gross investment as-
sets of the distributing corporation or the
controlled corporation is two-thirds or
more of the fair market value of its total
gross assets; (ii) the fair market value of
the gross assets of the trade(s) or busi-
ness(es) on which the distributing corpo-
ration or the controlled corporation relies
to satisfy the active trade or business re-
quirement of § 355(b) is less than 10
percent of the fair market value of its
gross investment assets; and (iii) the ratio

of the fair market value of the gross in-
vestment assets to the fair market value of
the gross assets other than the gross in-
vestment assets of the distributing corpo-
ration or the controlled corporation is
three times or more of such ratio for the
other corporation (i.e., the controlled cor-
poration or the distributing corporation,
respectively).

For purposes of determining the fair
market value of the distributing corpora-
tion's and the controlled corporation's
gross investment assets, gross assets other
than gross investment assets, gross assets
of the trade or business, and total gross
assets, all members of such corporation's
separate affiliated group, within the mean-
ing of § 355(b)(3)(B), are treated as one
corporation. If the distributing corporation
or the controlled corporation relies on an
active trade or business of a partnership
for purposes of § 355(b), then for pur-
poses of determining the fair market value
of the gross assets of the trade(s) or busi-
ness(es) on which the distributing corpo-
ration or the controlled corporation relies
to satisfy the active trade or business re-
quirement of § 355(b), such corporation is
treated as owning its ratable share of the
gross assets of the partnership.

For purposes of this section 5.01(3),
"investment assets" has the meaning
given such term by § 355(g)(2)(B), except
as follows: (i) in the case of stock or
securities in a corporation any stock of
which is traded on (or subject to the rules
of) an established financial market within
the meaning of § 1.1092(d)-1(b) (publicly
traded stock), § 355(g)(2)(B)(iv) is ap-
plied by substituting "50-percent" for "20-
percent;" (ii) except as provided in clause
(iv) of this sentence, an interest in a pub-
licly traded partnership (as defined in
§ 7704(b), regardless of whether such
partnership is treated as a corporation pur-
suant to § 7704(a)) is treated in the same
manner as publicly traded stock; (iii) ex-
cept as provided in clause (iv) of this
sentence, an interest in a partnership that
is not a publicly traded partnership is
treated in the same manner as stock which
is not publicly traded stock; and (iv) in the
case of an interest in a partnership (other
than a publicly traded partnership treated
as a corporation pursuant to § 7704(a)),
the active trade or business of which is
taken into account by the distributing cor-

poration or the controlled corporation for
purposes of § 355(b), or would be taken
into account without regard to the five-
year requirement of § 355(b)(2)(B),
clauses (ii) and (iii) of this sentence do not
apply.

The Service also will not rule on any
issue relating to the qualification, under
§ 355 and related provisions, of a distri-
bution if, as part of a plan or series of
related transactions, investment assets are
disposed of, or property, including prop-
erty qualifying as an active trade or busi-
ness within the meaning of § 355(b), is
acquired with a principal purpose of
avoiding this section 5.01(3). This section
5.01(3) does not apply if (i) all the stock
of the controlled corporation that is dis-
tributed in the distribution is distributed to
one or more members of the affiliated
group, as defined in § 243(b)(2)(A), of
which the distributing corporation is a
member; and (ii) such distribution is not
part of a plan or series of related transac-
tions pursuant to which stock of any cor-
poration will be distributed outside such
affiliated group in a distribution described
in this section 5.01(3) or in section
4.01(30) of this revenue procedure.

(4) Section 358 .- See section 5.01(2),
above.

(5) Section 362 .- See section 5.01(2),
above.

(6) Section 613A .- Limitations on
Percentage Depletion in Case of Oil and
Gas Wells .- Whether the sale of oil or
gas, or any product derived from oil or
gas, is a bulk sale for purposes of
§ 613A(d)(2).

(7) Sections 661 and 662 .- Deduction
for Estates and Trusts Accumulating In-
come or Distributing Corpus; Inclusion of
Amounts in Gross Income of Beneficiaries
of Estates and Trusts Accumulating Income
or Distributing Corpus .- Whether the dis-
tribution of property by a trustee from an
irrevocable trust to another irrevocable trust
(sometimes referred to as a "decanting")
resulting in a change in beneficial interests is
a distribution for which a deduction is al-
lowable under § 661 or which requires an
amount to be included in the gross income
of any person under § 662.

(8) Section 1014 .- Basis of Property
Acquired from a Decedent .- Whether the
assets in a grantor trust receive a § 1014
basis adjustment at the death of the

deemed owner of the trust for income tax
purposes when those assets are not includ-
ible in the gross estate of that owner under
chapter 11 of subtitle B of the Internal
Revenue Code.

(9) Section 2036 .- Transfers with Re-
tained Life Estate .- Whether the corpus
of a trust will be included in a grantor's
estate when the trustee of the trust is a
private trust company owned partially or
entirely by members of the grantor's fam-
ily.

(10) Section 2038 .- Revocable Trans-
fers .- Whether the corpus of a trust will
be included in a grantor's estate when the
trustee of the trust is a private trust com-
pany owned partially or entirely by mem-
bers of the grantor's family.

(11) Section 2041 .- Powers of Ap-
pointment .- Whether the corpus of a trust
will be included in an individual's estate
when the trustee of the trust is a private
trust company owned partially or entirely
by members of the individual's family.

(12) Section 2501 .- Imposition of
Tax .- Whether the distribution of prop-
erty by a trustee from an irrevocable trust
to another irrevocable trust (sometimes
referred to as a "decanting") resulting in a
change in beneficial interests is a gift un-
der § 2501.

(13) Sections 2601 and 2663 .- Tax
Imposed; Regulations .- Whether the dis-
tribution of property by a trustee from an
irrevocable generation-skipping transfer
tax (GST) exempt trust to another irrevo-
cable trust (sometimes referred to as a
"decanting") resulting in a change in ben-
eficial interests is the loss of GST exempt
status or constitutes a taxable termination
or taxable distribution under § 2612.

(14) Sections 4966 and 4967 .- Taxes
on Taxable Distributions; Taxes on Pro-
hibited Benefits .- Issues involving inter-
pretation of §§ 4966 and 4967 regarding
distributions from donor advised funds.

(15) Section 6050P .- Returns Relating
to the Cancellation of Indebtedness by
Certain Entities .- Whether amounts re-
duced pursuant to the terms of a debt
instrument are reportable under § 6050P
and the regulations.

(16) Section 6050P .- Returns Relating
to the Cancellation of Indebtedness by
Certain Entities .- Whether amounts dis-
charged in a nonlending transaction are

reportable under § 6050P and the regula-
tions.

(17) Section 6109 .- Identifying Num-
bers .- The proper assignment or retention
of an employer identification number
(EIN) in the case of a reorganization
within the meaning of § 368(a)(1)(F) if
the transferor corporation becomes disre-
garded as an entity separate from its
owner under § 301.7701-3.

.02 General Areas.

None at this time.

## SECTION 6. AREAS COVERED BY AUTOMATIC APPROVAL PROCEDURES IN WHICH RULINGS WILL NOT ORDINARILY BE ISSUED

.01 Section 338 .- Certain Stock Pur-
chases Treated as Asset Acquisitions .-
All requests for an extension of time un-
der § 301.9100-3 within which to make
an election under § 338(g) or (h)(10)
where the Service has provided an admin-
istrative procedure to seek such an exten-
sion. See Rev. Proc. 2003-33, 2003-1
C.B. 803 (extension automatically granted
to certain persons required to file Form
8023 to make a valid § 338 election that
have not filed Form 8023 by its due date).

.02 Section 442 .- Change of Annual
Accounting Period .- All requests for a
change in annual accounting period where
the Service has provided an automatic
change procedure for obtaining such a
change in annual accounting period. See
Rev. Proc. 2002-39, 2002-1 C.B. 1046
(general procedures for prior approval), as
clarified and modified by Notice 2002-72,
2002-2 C.B. 843, and modified by Rev.
Proc. 2003-34, 2003-1 C.B. 856; Rev.
Proc. 2006-45, 2006-2 C.B. 851 (certain
corporations), as clarified and modified by
Rev. Proc. 2007-64, 2007-2 C.B. 818;
Rev. Proc. 2006-46, 2006-2 C.B. 859
(partnership, S corporation, personal ser-
vice corporation, or trust); and Rev. Proc.
2003-62, 2003-2 C.B. 299 (individual
seeking a calendar year).

.03 Section 446 .- General Rule for
Methods of Accounting .- Except as oth-
erwise specifically provided in applicable
procedures published in the Internal Rev-
enue Bulletin, all requests for a change in

method of accounting where the Service
has provided an automatic change request
procedure for obtaining such a change in
method of accounting. See the automatic
change request procedures listed in sec-
tion 9.22 of Rev. Proc. 2018-1, this Bul-
letin.

.04 Section 461 .- General Rule for
Taxable Year of Deduction .- All requests
for making or revoking an election under
§ 461 where the Service has provided an
administrative procedure for making or
revoking such an election under § 461.
See Rev. Proc. 92-29, 1992-1 C.B. 748
(dealing with the use of an alternative
method for including in basis the esti-
mated cost of certain common improve-
ments in a real estate development).

.05 Section 704(c) .- Contributed
Property .- Requests from Qualified Mas-
ter Feeder Structures, as described in sec-
tion 4.02 of Rev. Proc. 2001-36, 2001-1
C.B. 1326, for permission to aggregate
built-in gains and losses from contributed
qualified financial assets for purposes of
making § 704(c) and reverse § 704(c)
allocations.

.06 Section 1362 .- Election; Revoca-
tion; Termination .- All situations in
which an S corporation qualifies for auto-
matic late S corporation relief under Rev.
Proc. 2013-30, 2013-36 I.R.B. 173.

.07 Sections 1502, 1504, and 1552 .-
Regulations; Definitions; Earnings and
Profits .- All requests for waivers or con-
sents on consolidated return issues where
the Service has provided an administrative
procedure for obtaining such waivers or
consents on consolidated return issues.
See Rev. Proc. 2014-24, 2014-13 I.R.B.
879 (certain subsidiary members treated
as if they filed a Form 1122 even though
they failed to do so); Rev. Proc. 2002-32,
2002-1 C.B. 959, as modified by Rev.
Proc. 2006-21, 2006-1 C.B. 1050 (cer-
tain corporations seeking reconsolidation
within the 5-year period specified in
§ 1504(a)(3)(A)); Rev. Proc. 90-39,
1990-2 C.B. 365, as modified by Rev.
Proc. 2006-21, and as clarified by Rev.
Proc. 90-39A, 1990-2 C.B. 367 (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 consoli-
dated Federal income tax liability); and
Rev. Proc. 89-56, 1989-2 C.B. 643, as

modified by Rev. Proc. 2006-21 (certain
affiliated groups of corporations seeking
to file a consolidated return in which
member(s) of the group use a 52-53 week
taxable year).

.08 Section 2010(c)(5)(A) .- Election
Required .- All requests filed before the
second anniversary of the decedent's date
of death for an extension of time under
§ 301.9100-3 to make an election under
§ 2010(c)(5)(A), where the Service has
provided an administrative procedure to
seek such an extension. See Rev. Proc.
2017-34, 2017-26 I.R.B. 1282 (procedure
providing for an extension of time to cer-
tain taxpayers to make a "portability"
election under § 2010(c)(5)(A)).

.09 Section 7701 .- Definitions .- All re-
quests for an extension of time under
§ 301.9100-3 within which to make an
entity classification election under
§ 301.7701-3 where the Service has pro-
vided an administrative procedure to seek
such an extension. See Rev. Proc. 2009-
41, 2009-39 I.R.B. 439 (extension auto-
matically granted to certain persons re-
quired to file Form 8832 to make a valid
entity classification election that have not
filed Form 8832 by its due date).

### SECTION 7. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 2017-3, 2017-1 I.R.B. 130
and Rev. Proc. 2017-38, 2017-22 I.R.B.
1258 are superseded. Rev. Proc. 2017-34,

2017-26 I.R.B. 1282, Rev. Proc. 2017-
52, 2017-41 I.R.B. 283, and Rev. Rul.
2017-09, 2017-21 I.R.B. 1244 are super-
seded in part.

### SECTION 8. EFFECTIVE DATE

This revenue procedure is effective
January 2, 2018.

### SECTION 9. PAPERWORK REDUCTION ACT

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

An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less the collection of information displays
a valid control number.

The collections of information in this
revenue procedure are in sections 2.03 and
3.01(53).

This information is required to evalu-
ate whether the request for a letter ruling
or determination letter is not covered by
the provisions of this revenue procedure.
The collections of information are re-
quired to obtain a letter ruling or determi-
nation letter. The likely respondents are
businesses or other for-profit institutions.

The estimated total annual reporting
and/or recordkeeping burden of this reve-
nue procedure, and Rev. Proc. 2018-1,
this Bulletin is 316,020 hours.

The estimated annual burden per re-
spondent/recordkeeper varies from 1 hour
to 200 hours, depending on individual cir-
cumstances, with an estimated average
burden of 80 hours. The estimated number
of respondents and/or recordkeepers is
3,956.

The estimated annual frequency of re-
sponses is on occasion.

Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. § 6103.

# DRAFTING INFORMATION

The principal author of this revenue
procedure is Jean Broderick of the Office
of Associate Chief Counsel (Corporate).
For further information about this revenue
procedure, please contact Ms. Broderick
at (202) 317-6848 (not a toll-free call), or
call the Associate office contacts listed in
section 10.07 of Rev. Proc. 2018-1, this
Bulletin. See section 3 of Rev. Proc.
2018-1 to determine which Associate of-
fice has jurisdiction over a particular
issue.

# Part III. Administrative, Procedural, and Miscellaneous

## Rev. Proc. 2018-4

TABLE OF CONTENTS

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

152

.01 Purpose of revenue procedure.

152

.02 Organization of revenue procedure

152

.03 Other guidance affecting this revenue procedure

152

.04 Updated annually

153

SECTION 2. WHAT CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2017-4?

153

.01 In general

153

.02 Changes related to pre-approved plan program

154

.03 Changes to fees for EP VCP Submissions

154

.04 Changes to other fees

155

.05 Other changes

155

PART I. GENERALLY APPLICABLE PROCEDURES

SECTION 3. IN WHAT FORM IS ADVICE PROVIDED BY EMPLOYEE PLANS RULINGS AND AGREEMENTS?

156

.01 In general

156

.02 Letter ruling

156

.03 Closing agreement

156

.04 Determination letter

156

.05 Opinion letter

156

.06 Oral advice

157

.07 Nonbank trustee approval letters

157

.08 Compliance statement

158

.09 Advisory letter

158

SECTION 4. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN ADVICE UNDER THIS PROCEDURE?

158

SECTION 5. ON WHAT ISSUES MUST WRITTEN ADVICE BE REQUESTED UNDER DIFFERENT PROCEDURES?

159

.01 Pre-approved plans

159

.02 Employee Plans Compliance Resolution System

159

.03 Chief Counsel

159

.04 Determination letters not issued for requests for minimum funding waivers

159

SECTION 6. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS AND

DETERMINATION LETTERS FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS?

160

.01 In general

160

.02 Certain information required in all requests

160

.03 Additional information required in certain circumstances

167

.04 Address to send the request

169

.05 Pending letter ruling requests

169

.06 When to attach letter ruling to return

169

.07 How to check on status of request

169

SECTION 7. WHAT ACTIONS ARE TAKEN IF A REQUEST IS WITHDRAWN OR EMPLOYEE PLANS RULINGS

AND AGREEMENTS DECLINES TO ISSUE A LETTER RULING OR DETERMINATION LETTER?

169

.01 In general

169

.02 Notification of appropriate Service official

170

.03 Refunds of user fee

170

# PART II. PROCEDURES FOR DETERMINATION LETTER REQUESTS PART IIA. REQUESTING DETERMINATION LETTERS

SECTION 8. IN WHAT AREAS ARE DETERMINATION LETTERS ISSUED?

170

.01 Circumstances under which determination letters are issued

170

.02 Types of requests

170

.03 Areas in which determination letters will not be issued.

171

.04 Determination letter applications

172

.05 Review of determination letters

172

SECTION 9. WHAT IS THE GENERAL SCOPE OF A DETERMINATION LETTER?

173

.01 Scope of this section

173

.02 Scope of determination letters

173

.03 Design-based safe harbor

173

.04 Governmental plans under § 414(d)

173

.05 Church plans under § 414(e)

173

.06 Tax treatment of certain contributions under § 414(h)

173

.07 Other limits on scope of determination letter

174

.08 Leased employees

174

.09 Partial terminations

174

.10 Publication 794, Favorable Determination Letter

174

SECTION 10. WHAT IS THE GENERAL PROCEDURE FOR REQUESTING DETERMINATION LETTERS?

174

.01 Scope

174

.02 Complete information required

174

.03 Complete copy of plan and trust instrument and applicable amendments required

175

.04 Submission of reference list encouraged

175

.05 Separate application for each single § 414(l) plan

175

.06 Prior letters

175

.07 Plans involving mergers

175

.08 User fees

175

.09 Interested party notification and comment

176

.10 Contrary authority must be distinguished

176

.11 Employer/employee relationship

176

.12 Incomplete applications

176

.13 Effect of failure to disclose material fact

177

.14 Where to file requests.

177

.15 Submission of related plans

177

.16 Withdrawal of requests

178

.17 Right to status conference

178

.18 How to request status conference

178

.19 Correct format required

178

SECTION 11. WHAT IS THE PROCESS FOR REQUESTING DETERMINATION LETTERS FOR NDIVIDUALLY DESIGNED PLANS?

178

.01 Requesting determination letters

178

.02 Elimination of remedial amendment cycle for individually designed plans

179

.03 Forms

179

.04 Application must include copy of plan and amendments

179

.05 Restatements required

180

.06 Section 414(x) combined plans

180

SECTION 12. WHEN MAY AN ADOPTER OF A MASTER AND PROTOTYPE OR VOLUME SUBMITTER PLAN SUBMIT A DETERMINATION LETTER APPLICATION?

180

.01 Eligibility to apply for a determination letter

180

.02 Reliance equivalent to determination letter

181

SECTION 13. WHAT ARE THE DETERMINATION LETTER FILING PROCEDURES FOR VOLUME SUBMITTER PLANS?

182

.01 Scope

182

.02 Determination letter for adoption of volume submitter plan

182

.03 Timing of determination letter applications for adopting employers of pre-approved plans

183

SECTION 14. WHAT ARE THE DETERMINATION LETTER FILING PROCEDURES FOR INDIVIDUALLY DESIGNED MULTIPLE EMPLOYER PLANS?

183

.01 Scope

183

.02 Applicant must request letter for plan in the name of the controlling member

183

.03 Where to file requests.

184

.04 Addition of employers.

184

SECTION 15. WHAT ARE THE PROCEDURES FOR FILING A REQUEST FOR A DETERMINATION UPON

TERMINATION OR DISCONTINUANCE OF CONTRIBUTIONS, NOTICE OF MERGER, CONSOLIDATION, ETC?

184

.01 Scope

184

.02 Forms

184

.03 Supplemental information

185

.04 Compliance with Title IV of ERISA

185

.05 Termination prior to time for amending for change in law

185

.06 Restatement not required for terminating plan

185

SECTION 16. WHAT ARE THE DETERMINATION LETTER FILING PROCEDURES FOR GROUP TRUSTS?

186

.01 Scope

186

.02 Required information

186

.03 Forms

186

SECTION 17. WHAT ARE THE PROCEDURES FOR FILING A REQUEST FOR A DETERMINATION OF LEASED EMPLOYEE STATUS?

186

.01 Scope

186

.02 Employer must request the determination under § 414(n)

187

.03 Forms

187

.04 Employer is responsible for determining continuing status under § 414(n)

187

.05 Pre-approved plans

187

.06 Required information for § 414(n) determination

187

SECTION 18. WHAT ARE THE PROCEDURES FOR REQUESTING SECTION 401(h) AND SECTION 420 DETERMINATION LETTERS?

188

.01 Scope

188

.02 Required information for § 401(h) determination

188

.03 Required information for § 420 determination

188

PART IIB. INTERESTED PARTY NOTICE AND COMMENT

SECTION 19. WHAT RIGHTS TO NOTICE AND COMMENT DO INTERESTED PARTIES HAVE?

189

.01 Rights of interested parties

189

.02 Comments by interested parties

190

.03 Requests for DOL to submit comments

191

.04 Right to comment if DOL declines to comment.

191

.05 Confidentiality of comments

192

.06 Availability of comments

192

.07 When comments are deemed made

192

SECTION 20. WHAT ARE THE GENERAL RULES FOR NOTICE TO INTERESTED PARTIES?

192

.01 Notice to interested parties

192

.02 Time when notice must be given

192

.03 Content of notice
192

.04 Procedures for making information available to interested parties
193

.05 Information to be available to interested parties
194

.06 Special rules if there are fewer than 26 participants
194

.07 Information described in § 6104(a)(1)(D) should not be included
194

.08 Availability of additional information to interested parties
194

.09 Availability of notice to interested parties
195

# PART IIC. PROCESSING DETERMINATION LETTER REQUESTS

SECTION 21. HOW DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS HANDLE DETERMINATION
LETTER REQUESTS?
195

.01 Oral advice
195

.02 Conferences
195

.03 Determination letter based solely on administrative record
195

.04 Notice of final determination
196

.05 Issuance of the notice of final determination
196

SECTION 22. WHAT ARE THE STEPS FOR EXHAUSTING ADMINISTRATIVE REMEDIES?
197

.01 In general

.02 Steps for exhausting administrative remedies
197

.03 Applicant's request for § 7805(b) relief
197

197

.04 Interested parties
197

.05 Deemed exhaustion of administrative remedies
197

.06 Service must have reasonable time to act on appeal
198

.07 Service must have reasonable time to act on request for § 7805(b) relief
198

SECTION 23. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?
198

.01 May be relied on subject to limitations
198

.02 Scope of reliance on determination letter.

.03 Effect of subsequent publication of revenue ruling, etc.
198

.04 Effect of subsequent amendment by employer
198

199

.05 Revocation or modification of a determination letter
199

.06 Determination letter revoked or modified based on material change in facts applied retroactively
199

.07 Not otherwise generally revoked or modified retroactively
199

.08 Taxpayer may request that retroactive effect of revocation or modification be limited under § 7805(b)
200

## PART III. PROCEDURES FOR LETTER RULING REQUESTS

# PART IIIA. REQUESTING LETTER RULINGS

## SECTION 24. UNDER WHAT CIRCUMSTANCES DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS ISSUE

LETTER RULINGS?

200

.01 Scope limited to issues specified

200

.02 Generally not in employee plans qualification matters

201

.03 Request to Employee Plans Rulings and Agreements for extension of time for making an election or for other relief under § 301.9100-1 of the Procedure and Administration Regulations

201

.04 Issuance of a letter ruling before the issuance of a regulation or other published guidance

202

.05 Issues in prior return

202

.06 Generally not to business associations or groups

202

.07 Generally not to foreign governments

203

.08 Generally not on federal tax consequences of proposed legislation

203

SECTION 25. UNDER WHAT CIRCUMSTANCES DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS HAVE THE DISCRETION TO ISSUE LETTER RULINGS?

203

.01 Ordinarily not in certain areas because of factual nature of the problem.

203

.02 No "comfort" letter rulings

203

.03 Not on alternative plans or hypothetical situations
203

.04 Ordinarily not on part of an integrated transaction
203

.05 Not on partial terminations of employee plans
203

.06 Law requires a letter ruling
203

.07 Issues under consideration by the PBGC or the DOL
204

.08 Domicile in a foreign jurisdiction
204

SECTION 26. WHAT IS THE PROCEDURE FOR REQUESTING A LETTER RULING FROM EMPLOYEE
PLANS RULINGS AND AGREEMENTS?
204

.01 General procedures for requesting a letter ruling
204

.02 Specific additional procedures apply to certain letter ruling requests
204

# PART IIIB. PROCESSING LETTER RULING REQUESTS

SECTION 27. HOW DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS HANDLE LETTER
RULING REQUESTS?
205

.01 In general

205

.02 Is not bound by informal opinion expressed

.03 Will return any letter ruling request mistakenly sent to wrong address
205

205

.04 Tells taxpayer if request lacks essential information during initial contact.

205

.06 Requires prompt submission of additional information requested after initial contact

205

.07 Encourages use of fax

206

.08 Address to send additional information

206

.09 Number of copies of additional information to be submitted

206

.11 Case closed if taxpayer does not submit additional information

206

.12 Near the completion of the ruling process, advises taxpayer of conclusions and, if Employee Plans Rulings and
Agreements will rule adversely, offers the taxpayer the opportunity to withdraw the letter ruling request
206

.13 May request draft of proposed letter ruling near the completion of the ruling process.
206

## SECTION 28. HOW DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS SCHEDULE CONFERENCES WITH TAXPAYERS?

207

.01 Schedules a conference if requested by taxpayer
207

.02 Permits taxpayer one conference of right
207

.03 Disallows verbatim recording of conferences

208

.04 Makes tentative recommendations on substantive issues

208

.05 May offer additional conferences

208

.06 Requires written confirmation of information presented at conference
208

.07 May schedule a pre-submission conference
208

.08 Under limited circumstances, may schedule a conference to be held by telephone

209

SECTION 29. WHAT EFFECT WILL A LETTER RULING HAVE?

209

.01 Has same effect as a determination letter

209

.02 Will not apply to another taxpayer

209

.03 Will be used by the Service in examining the taxpayer's return

209

.04 May be revoked or modified if found to be in error

210

.05 Letter ruling revoked or modified based on material change in facts applied retroactively
210

.06 Not otherwise generally revoked or modified retroactively
210

.07 Retroactive effect of revocation or modification applied to a particular transaction
211

.08 Retroactive effect of revocation or modification applied to a continuing action or series of actions
211

.09 May be retroactively revoked or modified if the transaction is completed without reliance on the letter ruling
211

.10 Taxpayer may request that retroactivity be limited
211

.05 Information must be submitted within 30 calendar days
205

.10 30-day or 21-day period may be extended if justified and approved
206

# PART IV. USER FEES

SECTION 30. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTING ADVICE FROM EMPLOYEE PLANS

RULINGS AND AGREEMENTS?

211

.01 Legislation authorizing user fees

211

.02 Requests to which user fees apply

212

.03 Requests and other actions that do not require the payment of a user fee.

212

.04 Exemptions from the user fee requirements.

212

.05 User fees under EPCRS

212

.06 Requests involving multiple offices, fee categories, issues, transactions, or entities

213

.07 Method of payment

213

.08 Transmittal forms

214

.09 Effect of nonpayment or payment of incorrect amount.

214

.10 Refunds of user fees

215

.11 Request for reconsideration of user fee

216

SECTION 31. WHAT ARE THE MAILING ADDRESSES FOR REQUESTING LETTER RULINGS, OPINION LETTERS, ADVISORY LETTERS, DETERMINATION LETTERS, AND VCP COMPLIANCE STATEMENTS FROM EMPLOYEE

PLANS RULINGS AND AGREEMENTS?

217

.01 Letter rulings and opinion letters

217

.02 Determination letters

218

.03 VCP compliance statements

219

SECTION 32. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?

219

SECTION 33. EFFECTIVE DATE

219

SECTION 34. PAPERWORK REDUCTION ACT

219

DRAFTING INFORMATION

220

APPENDIX A-SCHEDULE OF USER FEES

221

.01 Letter ruling requests

221

.02 Opinion letters on prototype individual retirement accounts and/or annuities, SEPs, SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs

221

.03 Opinion letters on master and prototype plans submitted pursuant to Rev. Proc. 2015-36

221

.04 Advisory letters on VS plans submitted pursuant to Rev. Proc. 2015-36.

221

.05 Opinion letters on pre-approved plans submitted pursuant to Rev. Proc. 2017-41

222

.06 Determination letters

222

.07 Opinion letters on § 403(b) prototype plans

222

.08 Advisory letters on § 403(b) VS plans

222

.09 User fees for VCP submissions under EPCRS

223

APPENDIX B-SAMPLE NOTICE TO INTERESTED PARTIES

224

APPENDIX C-CHECKLIST FOR SECTION 401(h) AND SECTION 420 DETERMINATION LETTERS

226

APPENDIX D-SAMPLE FORMAT FOR A LETTER RULING REQUEST FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS

228

APPENDIX E-CHECKLIST FOR LETTER RULINGS FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS

230

APPENDIX F-ADDITIONAL CHECKLIST FOR ROTH IRA RECHARACTERIZATION RULING REQUESTS

232

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

### Purpose of revenue procedure

.01 This revenue procedure explains how the Internal Revenue Service provides advice to taxpayers
on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division,
Employee Plans Rulings and Agreements Office (Employee Plans Rulings and Agreements). It also
details the types of advice available to taxpayers, and the manner in which such advice is requested and
provided.

Organization of revenue
procedure

.02

(1) Part I of this revenue procedure contains general information about the types of advice
provided by Employee Plans Rulings and Agreements and the procedures that apply to both
requests for determination letters and requests for private letter rulings. Part II contains proce-
dures for determination letters for various types of plans and transactions. Part III contains
procedures for private letter rulings within the jurisdiction of Employee Plans Rulings and
Agreements. Part IV contains the rules for user fees that are required to be paid when requesting
various types of advice.

(2) Employee Plans Rulings and Agreements will continue to issue letter rulings only on certain
matters specified in section 24.01 of this revenue procedure. Rev. Proc. 2018-1, this Bulletin, sets
forth procedures for obtaining letter rulings from the Office of Associate Chief Counsel, including
letter rulings relating to qualified retirement plans and IRAs. Rev. Proc. 2018-2, this Bulletin, sets
forth procedures for requesting technical advice from the Office of Associate Chief Counsel.

### Other guidance affecting this revenue procedure

.03

(1) Determination letter program

(a) Revenue Procedure 2016-37, 2016-29 I.R.B. 136, modified the determination letter
program for qualified plans to eliminate, as of January 1, 2017, the five-year remedial amendment
cycle system for individually designed plans set forth in Rev. Proc. 2007-44, 2007-2 C.B. 54,
and to provide the circumstances under which a plan sponsor may submit a determination letter
application to Employee Plans Rulings and Agreements. In addition, Rev. Proc. 2016-37
described a system of remedial amendment cycles that applies to qualified pre-approved (master
and prototype (M&P) and volume submitter (VS)) plans and the deadlines to submit applications
for opinion and advisory letters.

(b) The 2017 Required Amendments List, which establishes the end of the remedial amend-
ment period for an individually designed plan with respect to changes in qualification require-
ments that appear on the list, is contained in Notice 2017-72, 2017-52 I.R.B. 601.

(c) The 2016 Required Amendments List, which establishes the end of the remedial amendment
period for an individually designed plan with respect to changes in qualification requirements that
appear on the list, is contained in Notice 2016-80, 2016-52 I.R.B. 918.

(d) The 2015 Cumulative List, which applied to individually designed plans submitted for a
determination letter during the 2017 calendar year (with the exception of terminating plans), is
contained in Notice 2015-84, 2015-52 I.R.B. 880.

(e) Notice 2017-1, 2017-2 I.R.B. 367, provides an exemption from the requirement to pay a
user fee for certain requests to the Service for determination letters with respect to the qualified
status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership (ESOP)
plans maintained by small employers.

(2) Pre-approved plan program

(a) Rev. Proc. 2015-36, 2015-27 I.R.B. 20, sets forth the procedures for obtaining opinion and
advisory letters for qualified pre-approved plans submitted with respect to remedial amendment
cycles prior to the third six-year remedial amendment cycle. The second six-year remedial
amendment cycle for defined contribution plans began on February 1, 2011, and ended on January
31, 2017 and the second six-year remedial amendment cycle for defined benefit plans began on
February 1, 2013, and ends on January 31, 2019.

(b) Rev. Proc. 2017-41, 2017-29 I.R.B. 92, modifies the pre-approved program by eliminating
the distinction between M&P and VS plans, liberalizing the types of plans eligible for pre-
approved status and affording greater flexibility in the design. In addition Rev. Proc. 2017-41 sets
forth the procedures for obtaining an opinion letter for qualified pre-approved plans submitted
with respect to the third (and subsequent) six-year remedial amendment cycles. The third six-year
remedial amendment cycle for defined contribution plans began on February 1, 2017, and ends on
January 31, 2023. The on-cycle submission period for pre-approved plan providers to submit
applications for opinion letters for defined contribution plans for the third six-year remedial
amendment cycle began on October 2, 2017, and ends on October 1, 2018. The third six-year
remedial amendment cycle for defined benefit plans will begin on February 1, 2019, and will end
on January 31, 2025. The on-cycle submission period for pre-approved plan providers to submit
applications for opinion letters for defined benefit plans for the third six-year remedial amendment
cycle will be announced in future guidance.

(c) The 2017 Cumulative List, which will be used to submit opinion letter applications for
pre-approved defined contribution plans during the third six-year remedial amendment cycle, is
contained in Notice 2017-37, 2017-29 I.R.B. 89.

(3) Other guidance

(a) Rev. Proc. 2013-22, 2013-18 I.R.B. 985, as modified by Rev. Proc. 2014-28, 2014-16
I.R.B. 944 and Rev. Proc. 2015-22, 2015-11 I.R.B. 754, sets forth the procedures for obtaining
opinion and advisory letters for § 403(b) prototype plans and VS plans.

(b) Rev. Proc. 2016-51, 2016-42 I.R.B. 466, sets forth the procedures for correcting quali-
fication failures under the Employee Plans Compliance Resolution System (EPCRS).

Updated annually

.04 This revenue procedure is updated annually, but it may be modified, amplified or clarified
during the year.

SECTION 2. WHAT
CHANGES HAVE BEEN
MADE TO REVENUE
PROCEDURE 2017-4?

In general

.01 This revenue procedure is a general update of Rev. Proc. 2017-4, 2017-1 I.R.B. 146, which
sets forth general information about the types of advice provided by Employee Plans Rulings and
Agreements; general procedures for letter ruling and determination letter requests; specific

procedures for determination letter requests; and the user fees associated with advice requested
from Employee Plans Rulings and Agreements. Procedures and user fees applicable to advice
provided by the Commissioner, Tax Exempt and Government Entities, Exempt Organizations
Office, are contained in Rev. Proc. 2018-5, this Bulletin.

### Changes related to pre- approved plan program

.02 The changes to the pre-approved plan program set forth in Rev. Proc. 2017-41 apply solely
to applications for opinion letters submitted with respect to a plan's third (and subsequent)
six-year remedial amendment cycles. The on-cycle submission period for pre-approved plan
providers to submit applications for opinion letters for defined contribution plans for the third
six-year remedial amendment cycle began on October 2, 2017, and will end on October 1, 2018.
Thus, the applicable provisions of Rev. Proc. 2017-41 relating to opinion letter applications with
respect to a plan's third and subsequent six-year remedial amendment cycles have been incor-
porated into this revenue procedure.

Rev. Proc. 2015-36 continues to apply to certain opinion and advisory letter applications for
defined contribution and defined benefit M&P and VS plans that may still be submitted with
respect to cycles prior to the third six-year remedial amendment cycle. In addition, defined benefit
M&P and VS plans will receive opinion or advisory letters relating to the second six-year
remedial amendment cycle in 2018. Adopting employers will adopt such plans and request
determination letters, if eligible, during an approximate two-year period that will be announced
by the IRS at a future date. Thus, provisions relating to the M&P and VS programs described
under Rev. Proc. 2015-36 that continue to apply to such pre-approved plans have been retained
in this revenue procedure.

In addition to changes made throughout this revenue procedure relating to the restructure of the
pre-approved plan program as described above, other changes specifically relating to the pre-
approved plan program include the following:

(1) Section 8.02 is revised to note that an adopting employer of a pre-approved M&P plan may
file a Form 5307 with respect to the second six-year remedial amendment cycle if the employer
has modified the plan to add overriding language to reflect §§ 415 and 416.

(2) Section 12.01(3) is modified to provide that a controlling member that makes non-extensive
modifications to a VS multiple employer plan may apply for a determination letter on Form 5300
in the two-year window, regardless of whether a prior favorable determination letter has been
issued. An adopting employer other than the controlling member may not apply for a determi-
nation letter. Related changes are made in section 8.02 and Appendix A, .06(1)(d).

(3) Section 17.05 is clarified to note that an adopting employer of a pre-approved plan must be
otherwise eligible to submit a determination letter application in order to request a determination
with respect to § 414(n).

(4) Section 30.11 is revised to add the appropriate unit to refer to in a request for reconsid-
eration of a user fee with respect to opinion letter requests submitted under Rev. Proc. 2017-41.

(5) Appendix A, .05 is added to provide user fees for submissions pursuant to Rev. Proc.
2017-41.

### Changes to fees for EP VCP submissions

.03 The user fee structure for VCP submissions is modified. The changes are as follows:

(1) Appendix A, .09, Schedule of User Fees for VCP submissions, is revised to change the user
fees to: $1,500 for plans with assets of $500,000 or less; $3,000 for plans with assets of over
$500,000 to $10,000,000; and $3,500 for plans with assets of over $10,000,000.

(2) The user fee for Group Submissions remains unchanged.

(3) The special fee waiver for terminating Orphan Plans remains unchanged.

(4) All other reduced or alternative fees previously set forth in Appendix A, .09, no longer
apply.

### Changes to other fees

.04 The user fee has also been modified for the following types of submissions:

(1) Appendix A, .02, User fee for opinion letters on prototype individual retirement accounts
and/or annuities, SEPs, SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs,
is changed from $1,000 to $2,500.

(2) Appendix A, .06(1)(c), User fee for Form 5310 (Application for Determination for
Terminating Plan), is changed from $2,300 to $3,000.

### Other changes

.05 In addition to minor non-substantive changes, including changes to dates, cross references,
and citations to other revenue procedures, the following changes have been made:

(1) Section 5.04 is added to note that a request for a waiver of the minimum funding standard
is submitted to the Office of Associate Chief Counsel (TEGE), and a determination letter request
is no longer available. Related changes are made in section 31.01(1) and section 32.

(2) Section 6.02(11)(d), describing the practice of an enrolled actuary, is revised to add two
additional Code sections listed in Circular No. 230.

(3) Sections 8.04, 11.02, and 11.03(1) are revised to delete provisions related to Cycle A
determination letter submissions.

(4) Sections 10.17 and 10.18 are modified to provide that a status conference is requested from,
and is held with, the Director, EP Rulings & Agreements.

(5) Section 11.05 is modified to state that individually designed plans submitted for determi-
nation letters during 2018 must be restated for compliance with the 2016 Required Amendments
List (as well as any applicable prior Cumulative List).

(6) Sections 14.02 and 14.03 are clarified to state that a determination letter applicant for a
multiple employer plan must request a letter for the plan in the name of the controlling member.

(7) Sections 22.03 and 23.08 are changed to provide that a petitioner's request for § 7805(b)
relief must be submitted to the agent or specialist assigned to the case, in order to have exhausted
administrative remedies. In addition, other procedures formerly contained in Rev. Proc. 2017-4
relating to § 7805(b) requests are deleted.

(8) Section 23.05 is modified to provide that the Director, Employee Plans has the authority to
revoke or modify a determination letter.

(9) Sections 24.01(2) and 26.02(2) relating to changes in funding methods, and section
31.01(1), are updated to refer to Rev. Proc. 2017-57, 2017-44 I.R.B. 474.

(10) Section 24.01(9) is modified to clarify the scope of a letter ruling involving requests by
the plan sponsor of a multiemployer plan for approval of an extension of an amortization period.

(11) Sections 24.01(11) and 26.02(4) relating to approval of the use of a substitute mortality
table, and section 31.01(1), are updated to refer to Rev. Proc. 2017-55, 2017-43 I.R.B. 373.

(12) Section 25.01 is clarified to state that EP may decline to issue a letter ruling due to resource
constraints.

(13) Sections 29.04 and 29.10, regarding letter rulings, are modified to provide that a request
for § 7805(b) relief to limit the retroactive effect of a revocation or modification should be
submitted to the agent or specialist assigned to the case and to cross reference section 23.08.

(14) Section 29.08 is modified to replace Office of Division Counsel (TEGEDC) with the
Service.

## PART I. GENERALLY APPLICABLE PROCEDURES

### SECTION 3. IN WHAT FORM IS ADVICE PROVIDED BY EMPLOYEE PLANS RULINGS AND AGREEMENTS?

In general

.01 Employee Plans Rulings and Agreements provides advice in the form of letter rulings, closing agreements, compliance statements, determination letters, opinion letters, advisory letters, nonbank trustee approval letters, and oral advice.

Letter ruling

.02 A "letter ruling" is a written statement issued to a taxpayer by Employee Plans Rulings and Agreements that interprets and applies the tax laws or any nontax laws applicable to employee plans to the taxpayer's specific set of facts. Once issued, a letter ruling may be revoked or modified for any number of reasons, as described in section 29 of this revenue procedure, unless it is accompanied by a "closing agreement."

Closing agreement

.03 A "closing agreement" is a final agreement between the Service and a taxpayer on a specific issue or liability. It is entered into under the authority in § 7121 of the Internal Revenue Code of 1986 and is final unless fraud, malfeasance, or misrepresentation of a material fact can be shown. A closing agreement may be entered into if it is advantageous to have the matter permanently and conclusively closed, or if 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. In appropriate cases, a closing agreement may be made with sponsors of M&amp;P plans and practitioners of VS plans.

A closing agreement may also be entered into with respect to retirement plan failures corrected under EPCRS, as set forth in Rev. Proc. 2016-51.

Determination letter

.04 A "determination letter" is a written statement issued to a taxpayer by Employee Plans Rulings and Agreements that applies the principles and precedents previously announced to a specific set of facts. It is issued only if 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 that represents the position of the Service, and that specifically answers the questions presented. Employee Plans Rulings and Agreements issues determination letters on the qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock owner- ship 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).

Opinion letter

.05 (1) For applications submitted with respect to cycles prior to the third six-year remedial amendment cycle, an "opinion letter" is a written statement issued by Employee Plans Rulings and Agreements to a sponsor or M&amp;P mass submitter as to the acceptability of the form of an

M&P plan under § 401(a), § 403(a), or both §§ 401(a) and 4975(e)(7) and, in the case of a master
plan, the acceptability of the master trust under § 501(a). See Rev. Proc. 2015-36.

(2) For applications submitted with respect to the third (and subsequent) six-year remedial
amendment cycles, an opinion letter is a written statement issued by Employee Plans Rulings and
Agreements to a provider or mass submitter as to the qualification in form of a plan under § 401,
§ 403(a), or both §§ 401 and 4975(e)(7). See Rev. Proc. 2017-41.

(3) An opinion letter will also be issued as to the acceptability of the form of a prototype plan
under § 403(b). See Rev. Proc. 2013-22, as modified by Rev. Proc. 2014-28, and Rev. Proc.
2015-22.

(4) An opinion letter will also be issued concerning the conformance of a prototype trust,
custodial account, or individual annuity with the requirements of § 408(a), (b), (k), or, (p) or
§ 408A, as applicable. See Rev. Proc. 87-50, 1987-2 C.B. 647; Rev. Proc. 91-44, 1991-2 C.B.
733; Rev. Proc. 92-38, 1992-1 C.B. 859; Rev. Proc. 97-29, 1997-1 C.B. 689; Rev. Proc. 98-59,
1998-2 C.B. 727; Rev. Proc. 2002-10, 2002-1 C.B. 401, and Rev. Proc. 2010-48, 2010-50,
I.R.B. 828 (pre-approved IRAs), as modified by Appendix A of this revenue procedure.

#### Oral advice

.06 Oral advice is advisory only, and is not binding on the Service.

##### (1) No oral rulings and no written rulings in response to oral requests.

The Service does not orally issue rulings or determinations, nor does it issue letter rulings or
determination letters in response to oral requests from taxpayers. Service employees ordinarily
will discuss with taxpayers or their representatives inquiries about whether the Service will rule
on particular issues and about procedural matters regarding the submission of requests for letter
rulings or determination letters.

##### (2) Discussion possible on substantive issues.

At the discretion of the Service and as time permits, Service employees may also discuss
substantive issues with taxpayers or their representatives. Such a discussion will not bind the
Service or the Office of Associate Chief Counsel, and it cannot be relied upon as a basis for
obtaining retroactive relief under the provisions of § 7805(b).

Service employees who are not directly involved in the examination, appeal, or litigation of
particular substantive tax issues will not discuss those issues with taxpayers or their representa-
tives unless the discussion is coordinated with Service employees who are directly involved in the
matter. The taxpayer or the taxpayer's representative ordinarily will be asked whether an oral
request for advice or information relates to a matter pending before another office of the Service
or before a Federal court.

If a tax issue is not under examination, in an Appeals Office, or in litigation, the tax issue may
be discussed even though the issue is affected by a nontax issue pending in litigation.

A taxpayer may seek oral technical guidance from a taxpayer service representative in a field
office or service center when preparing a return or report.

The Service does not respond to letters seeking to confirm the substance of oral discussions,
and the absence of a response to such a letter is not a confirmation.

#### Nonbank trustee approval letters

.07 A "nonbank trustee approval letter" is a letter ruling that determines that the applicant is
qualified to act as a nonbank custodian pursuant to the requirements of § 1.408-2(e)(2) through
(5) of the Income Tax Regulations with respect to plans qualified under § 401(a), accounts
described in § 403(b)(7), individual retirement arrangements (IRAs) established under § 408(a),
(b), or (h), Roth IRAs established under § 408A, Coverdell educational savings accounts
established under § 530, Archer medical savings accounts established under § 220, or Health
Savings Accounts established under § 223. An applicant requesting approval as a nonbank trustee

must provide Employee Plans Rulings and Agreements with clear and convincing proof 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 or custodial account. See § 1.408-2(e)(6).

Compliance statement

.08 A "compliance statement" is a binding written agreement between Employee Plans Rulings and Agreements and, generally, the plan sponsor with respect to certain failures of the retirement plan to meet the applicable qualification requirements identified by the plan sponsor in a voluntary submission under the Voluntary Correction Program (VCP) of EPCRS. The compliance statement addresses the failures identified in the VCP submission, the terms of correction, including any revision of administrative procedures, and the time period within which proposed corrections must be implemented. A compliance statement is conditioned on (i) there being no misstatement or omission of material fact in connection with the submission, and (ii) the implementation of the specific corrections and satisfaction of any other conditions in the compliance statement. See Rev. Proc. 2016-51.

Advisory letter

.09

(1) An "advisory letter" is a written statement issued by Employee Plans Rulings and Agreements to a VS practitioner or VS mass submitter as to the acceptability of the form of a specimen plan and any related trust or custodial account under § 401(a) or § 403(a) for an application submitted with respect to cycles prior to the third six-year remedial amendment cycle. See Rev. Proc. 2015-36.

(2) An advisory letter is also issued as to the acceptability of the form of a specimen plan under § 403(b). See Rev. Proc. 2013-22, as modified by Rev. Proc. 2014-28 and Rev. Proc. 2015-22.

SECTION 4. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN ADVICE UNDER THIS PROCEDURE?

Taxpayers may request determination letters, letter rulings and closing agreements on issues within the jurisdiction of Employee Plans Rulings and Agreements under this revenue procedure. Employee Plans Rulings and Agreements issues determination letters on the qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans under §§ 401, 403(a), 409, and 4975(e)(7), and the status for exemption of any related trusts or custodial accounts under § 501(a). See Rev. Proc. 2016-37, which contains a description of the determi- nation letter program, including when to submit a request for a determination letter, for individ- ually designed and pre-approved plans.

Employee Plans Rulings and Agreements issues letter rulings on the Code sections listed in section 24.01 of this revenue procedure, if appropriate in the interest of sound tax administration to answer written inquiries of individuals and organizations about their status for tax purposes and the tax effects of their acts or transactions.

Note that issues involving employee plans not listed in section 24.01 of this revenue procedure generally fall under the jurisdiction of the Office of Associate Chief Counsel (Tax Exempt and Government Entities). See section 5.03 below and Rev. Proc. 2018-1, this Bulletin.

## SECTION 5. ON WHAT ISSUES MUST WRITTEN ADVICE BE REQUESTED UNDER DIFFERENT PROCEDURES?

Pre-approved plans

.01 (1) The procedures for obtaining opinion letters for M&amp;P plans and any related trusts or custodial accounts under §§ 401(a), 403(a), and 501(a), and advisory letters for VS plans for applications submitted with respect to cycles prior to the third six-year remedial amendment cycle are contained in Rev. Proc. 2015-36. (2) The procedures for obtaining opinion letters for pre-approved plans submitted with respect to the third (and subsequent) six-year remedial amendment cycles are contained in Rev.Proc. 2017-41.

(3) The procedures for obtaining opinion letters for prototype trusts, custodial accounts, or annuities under § 408(a), (b), (k), or (p), or § 408A, are contained in Rev. Proc. 87-50; Rev. Proc. 91-44; Rev. Proc. 92-38; Rev. Proc. 97-29; Rev. Proc. 98-59; Rev. Proc. 2002-10 and Rev. Proc. 2010-48, as modified by Appendix A of this revenue procedure.

(4) The procedures for obtaining opinion and advisory letters for prototype plans and VS plans under § 403(b) are contained in Rev. Proc. 2013-22, as modified by Rev. Proc. 2014-28 and Rev. Proc. 2015-22.

Employee Plans Compliance Resolution System

.02 The procedures for obtaining compliance statements, etc., for certain failures of plans qualified under § 401(a), § 403(b) plans, SEPs, SIMPLEs, and § 457(b) plans under EPCRS are contained in Rev. Proc. 2016-51.

Chief Counsel

.03 The procedures for obtaining letter rulings, information letters, etc., on matters within the jurisdiction of the Office of Associate Chief Counsel (Tax Exempt and Government Entities), or within the jurisdiction of other Offices of Associate Chief Counsel are contained in the following revenue procedures:

(1) Chief Counsel's letter rulings, information letters, etc .: See Rev. Proc. 2018-1, this Bulletin.

(2) Technical Advice Requests: See Rev. Proc. 2018-2, this Bulletin.

(3) Chief Counsel's no-rule positions: See Rev. Proc. 2018-3, this Bulletin.

Determination letters not issued for requests for minimum funding waivers

.04 The alternative of requesting a determination letter in conjunction with a waiver of the minimum funding standard as described in section 3.04 of Rev. Proc. 2004-15, 2004-1 C.B. 490, is no longer available. A request for a letter ruling on a waiver of the minimum funding standard is submitted to the Office of Associate Chief Counsel (TEGE) and may no longer be submitted to Employee Plans Rulings and Agreements. See Rev. Proc. 2018-1, this Bulletin.

# SECTION 6. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS AND DETERMINATION LETTERS FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS?

In general

.01 This section explains the general instructions for requesting letter rulings and determination letters on all matters within the jurisdiction of Employee Plans Rulings and Agreements. Requests for letter rulings and determination letters require the payment of the applicable user fee discussed in section 6.02(15), section 30, and Appendix A of this revenue procedure. Specific and additional instructions also apply to requests for letter rulings and determination letters on certain matters. All requests must be submitted in English. All documents submitted in support of such requests must be in English, or accompanied by an English translation.

Certain information required in all requests

.02

Facts

(1) Complete statement of facts and other information. Each request for a letter ruling or 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 if a large number may be involved);

(b) a complete statement of the business reasons for the transaction; and

The Service will usually not rule on only one step of a larger integrated transaction. See section 25.04 of this revenue procedure. However, if such a letter ruling is requested, the facts and circumstances relating to the entire transaction, including true copies of relevant documents, etc., must be submitted.

Documents

(2) Copies of all contracts, wills, deeds, agreements, instruments, plan documents, and other documents. All documents that are pertinent to the transaction (including contracts, wills, deeds, agreements, instruments, plan documents, trust documents, and proposed disclaimers) must be submitted with the request.

Original documents should not be submitted because they become part of the Service's file and will not be returned to the taxpayer. Instead, true copies of all such documents should be submitted with the request. Each document, other than the request, should be labeled alphabet- ically and attached to the request in alphabetical order.

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 legal 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 or of a predecessor of the taxpayer).

If the statement is affirmative, it must specify whether the issue-

(a) is being examined by the Service;

(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 the Service;

(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) is being considered by the Pension Benefit Guaranty Corporation (PBGC) or the Depart-
ment of Labor (DOL).

## 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) Employee Plans Rulings and Agreements 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, or a predecessor previously submitted the same or a similar
issue to Employee Plans Rulings and Agreements 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 Employee Plans Rulings and Agree-
ments or the Office of Associate Chief Counsel (Tax Exempt and Government Entities); 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 Employee Plans Rulings and Agreements
or the Office of Associate Chief Counsel (Tax Exempt and Government Entities).

If the statement is affirmative for (a), (b), (c), or (d) of this section 6.02(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 consideration of the issue by Employee Plans Rulings and
Agreements or the Office of Associate Chief Counsel (Tax Exempt and Government Entities).

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 and how the issue is addressed by relevant authorities.

Statement of authorities
contrary to taxpayer's
views

(7) Statement of contrary authorities. The taxpayer is also encouraged to inform Employee
Plans Rulings and Agreements about, and discuss the implications of, any authority believed to
be contrary to the conclusion requested, such as legislation (or pending legislation), tax treaties,
court decisions, regulations, revenue rulings, revenue procedures, notices, 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, Employee Plans Rulings and Agreements, 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 Employee Plans Rulings and Agreements
refusing to issue a letter ruling or determination letter.

Identifying and discussing contrary authorities generally will enable Employee Plans Rulings
and Agreements personnel to understand the issue and relevant authorities more quickly. In that
case, when Employee Plans Rulings and Agreements 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 Employee Plans Rulings and
Agreements. If the taxpayer does not disclose and distinguish significant contrary authorities,
Employee Plans Rulings and Agreements may need to request additional information, which will
delay action on the request and may result in the application being returned due to being an
incomplete submission.

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
applicable legislation is introduced after the request is filed but before a letter ruling or
determination letter is issued, the taxpayer must notify Employee Plans Rulings and Agreements.

Deletions statement
required by § 6110

(9) Statement identifying information to be deleted from copy of letter ruling for public
inspection. The text of private letter rulings 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 must be accom-
panied 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 27.05 of this revenue procedure.

(a) Format of deletions statement. 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 is issued,
additional deletions statements may be submitted.

(b) Location of deletions statement. 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.

(c) Signature. The deletions statement must be signed and dated by the taxpayer or the
taxpayer's authorized representative. A stamped or faxed signature is not permitted.

(d) Additional information. The taxpayer should follow the same procedures above to
propose deletions from any additional information submitted after the initial request. An addi-
tional deletions statement, however, is not required with each submission of additional informa-
tion if the taxpayer's initial deletions statement requests that only names, addresses, and
identifying numbers be deleted, and the taxpayer wants only the same information deleted from
the additional information.

(e) Taxpayer may protest deletions not made. After receiving from the Service the notice
under § 6110(f)(1) of intention to disclose the letter ruling (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. 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 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 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. However, these matters may
be taken up at any conference that is otherwise scheduled regarding the request.

(f) Taxpayer may request delay of public inspection. After receiving the notice 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.

(g) Section 6110 does not apply to certain matters. Section 6110(l)(1) states that § 6110
disclosure provisions do not apply to any matter to which § 6104 applies. Therefore, letter rulings,
determination letters, and related background file documents dealing with the following matters
(covered by § 6104) are not subject to § 6110 disclosure provisions-

(i) An application for the qualification of a pension, profit-sharing or stock bonus plan, or an
individual retirement account described in § 408 or § 408A, or any application for exemption
under § 501(a) by an organization forming part of such a plan or an account;

(ii) Any document issued by the Service in which the qualification or exempt status of a plan
or account is granted, denied, or revoked;

(iii) Any application filed and any document issued by the Service with respect to the qualification or status of M&amp;P and VS plans; and (iv) The portion of any document issued by the Service with respect to the qualification or exempt status of a plan or account of a proposed transaction by such plan or account.

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. Neither a stamped signature nor a faxed signature is 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 one of the following:

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 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 card must be included in the declaration. For the rules on who may practice before the Service, see Treasury Department Circular No. 230.

Enrolled actuary

(d) An enrolled actuary 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, 412, 413, 414, 419, 419A, 420, 4971, 4972, 4976, 4980, 6057, 6058, 6059, 6652(d), 6652(e), 6692, 7805(b), former § 405, and 29 U.S.C. 1083.

Enrolled retirement plan agent

(e) An enrolled retirement plan agent (ERPA) is an individual who is authorized to practice before the Service under the ERPA program. The ERPA program is established under Circular No. 230 of the U.S. Department of the Treasury and is administered by the Office of Professional Responsibility. Practice as an ERPA is limited to representation with respect to issues involving the Employee Plans Determination Letter program, EPCRS, and the M&amp;P and VS programs. In addition, ERPAs are generally permitted to represent taxpayers with respect to Form 5300 series and Form 5500 filings, but not with respect to actuarial forms or schedules. For additional information on ERPAs, see §§ 10.4, 10.5, and 10.6 of Circular No. 230.

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, Office of Professional Responsibility under section 10.7(d) of Treasury Department Circular No. 230. A person may make a written request for a "Letter of Authorization" to: Office of Director, Office of Professional Responsibility, 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. For additional information, see section 6.02(12) below.

Employee, general partner, bona fide officer, administrator, trustee, etc.

(g) 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, to a trustee, receiver, guardian, personal representative, administrator, or executor representing a trust, receivership, guardianship, or estate, or to an individual representing his or her immediate family. A preparer of a return (other than a person referred to in paragraph (a), (b), (c), (d), or (e) of this section 6.02(11)) who is not a full-time employee, a general partner, a bona fide officer, an administrator, a trustee, etc., or an individual representing his or her immediate family may not represent a taxpayer in connection with a letter ruling, determination letter, or technical advice request. See section 10.7(c) of Treasury Department Circular No. 230.

Foreign representative

(h) A foreign representative (other than a person referred to in paragraph (a), (b), (c), (d), or (e) of this section 6.02(11)) is not authorized to practice before the Service and, therefore, may not represent 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 determi- nation letter on the individual's or entity's own behalf or through a person referred to in paragraph (a), (b), (c), (d), or (e) of this section 6.02(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 require- ments of the Statement of Procedural Rules (26 C.F.R. § 601.501-601.509), which provide the rules for representing a taxpayer before the Service. In addition, an unenrolled preparer must file a Form 8821 (Rev. March 2015), Tax Information Authorization, for certain limited employee plans matters. Form 2848 (Rev. December 2015), Power of Attorney and Declaration of Representative, must 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. An original, a copy, or a facsimile transmission (fax) of the power of attorney is acceptable so long as its authenticity is not reasonably disputed. For additional information regarding the power of attorney form, see section 6.03(2) of this revenue procedure.

Compliance with Treasury Department Circular No. 230

(13) Compliance with Treasury Department Circular No. 230. 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 in which Employee Plans Rulings and Agreements believes that the taxpayer's representative is not in compliance with Circular No. 230, Employee Plans Rulings and Agreements will bring the matter to the attention of the Director, Office of Professional Responsibility.

Penalties of perjury statement

(14) Penalties of perjury statement. (a) Format of penalties of perjury statement. A request for a letter ruling or determination letter and any change in the request submitted at a later time must be accompanied by the

following declaration: "Under penalties of perjury, I declare that I have examined this
request, or this modification to the request, including accompanying documents, and, to the
best of my knowledge and belief, the request or the modification contains all the relevant
facts relating to the request, and such facts are true, correct, and complete." See section
27.06 of this revenue procedure for the penalties of perjury statement applicable for submissions
of additional information.

(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer, not the
taxpayer's representative. Neither a stamped signature nor a faxed signature is 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, a state law partnership, or a limited liability company must be,
respectively, a trustee, general partner, or member-manager who has personal knowledge of the
facts.

Applicable user fee

(15) Applicable user fee. Section 7528 of the Code requires taxpayers to pay user fees for
requests for letter rulings, opinion letters, advisory letters, determination letters, and similar
requests. Appendix A to this procedure contains the schedule of fees for each type of request
under the jurisdiction of Employee Plans Rulings and Agreements. Section 30 of this revenue
procedure 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. See section 30.04 of this revenue procedure
for exemptions from the user fee requirements.

Number of copies of
request to be submitted

(16) Number of copies of request to be submitted. Generally a taxpayer needs to submit only
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 described in section 6.03(1) of this revenue procedure;

(b) the taxpayer is requesting deletions other than names, addresses, and identifying numbers,
as described in section 6.02(9) of this revenue procedure (one copy is the request for the letter
ruling or determination letter and the second copy is the deleted version of such request); or

(c) the taxpayer is requesting a closing agreement (as defined in section 3.03 of this revenue
procedure) on the issue presented.

Sample of a letter ruling
request

(17) Sample format for a letter ruling request. To assist a taxpayer or the taxpayer's
representative in preparing a letter ruling request, a sample format for a letter ruling request is
provided in Appendix D. 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 D,
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

(18) Checklist for letter ruling requests. Employee Plans Rulings and Agreements 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 E 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 E must be completed to the extent required by the instructions in the checklist, signed and dated by the taxpayer or the taxpayer's represen- tative, and placed on top of the letter ruling request. If the checklist in Appendix E is not received, Employee Plans Rulings and Agreements will ask the taxpayer or the taxpayer's representative to submit the checklist, which may delay action on the letter ruling request. A photocopy of this checklist may be used. .03

Additional information required in certain circumstances

Multiple issues

(1) To request a separate letter ruling for multiple issues in a single situation. If more than one issue is presented in a request for a letter ruling, Employee Plans Rulings and Agreements generally will issue a single letter ruling covering all the issues. However, if the taxpayer requests a separate letter ruling on any of the issues (because, for example, one letter ruling is needed sooner than another), Employee Plans Rulings and Agreements usually will 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 a separate letter ruling on multiple issues should make this clear in the request and submit two copies of the request. Additional checklists are solely for the specific issues designated. In issuing each letter ruling, Employee Plans Rulings and Agreements will state that it has issued a separate letter ruling or that requests for other letter rulings are pending.

Power of attorney

(2) Recipient of original letter ruling or determination letter. Employee Plans Rulings and Agreements 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. The letter ruling or determination letter is addressed to the taxpayer. A Form 2848, Power of Attorney and Declaration of Representative (Rev. December 2015), must be used to provide the represent- ative's authorization except in certain employee plans matters. See section 6.02(12) of this revenue procedure.

To have a copy sent to taxpayer's representative. A copy of the letter ruling or determination letter will be sent to any representative with a check in the box in the name and address block on Form 2848 to indicate the representative is to receive notices and communications. Copies of the letter ruling or determination letter, however, will be sent to no more than two representatives.

Expedited handling

(3) To request expedited handling. Employee Plans Rulings and Agreements ordinarily processes requests for letter rulings and determination letters in order of the date received. Determination letter requests are not eligible for expedited handling. Expedited handling with respect to a letter ruling request means that the request is processed ahead of the regular order. Expedited handling is granted only in rare and unusual cases, both out of fairness to other taxpayers and because Employee Plans Rulings and Agreements seeks to process all requests as expeditiously as possible and to give appropriate deference to normal business exigencies in all cases not involving expedited handling.

A taxpayer who has a compelling need to have a letter ruling request processed ahead of the regular order may request expedited handling. This request must explain in detail the need for expedited handling. The request must be made in writing, preferably in a separate letter with, or soon after filing, the request for the letter ruling. If the request is not made in a separate letter, then the letter in which the letter ruling request is made should say, at the top of the first page: "Expedited Handling Is Requested. See page _of this letter."

A request for expedited handling will not be forwarded to the appropriate group for action until
the check or money order for the user fee in the correct amount is received.

Whether the request will be granted is within the discretion of Employee Plans Rulings and
Agreements. Employee Plans Rulings and Agreements may grant a request if a factor outside a
taxpayer's control creates a real business need to obtain a letter ruling before a certain time in
order to avoid serious business consequences. Examples include situations in which a court or
governmental agency has imposed a specific deadline for the completion of a transaction, or a
transaction must be completed expeditiously to avoid an imminent business emergency (such as
the hostile takeover of a corporate taxpayer), provided that the taxpayer can demonstrate that the
deadline or business emergency, and the need for expedited handling, resulted from circum-
stances that could not reasonably have been anticipated or controlled by the taxpayer. To qualify
for expedited handling in such situations, the taxpayer must also demonstrate that the taxpayer
submitted the request as promptly as possible after becoming aware of the deadline or emergency.
The extent to which the letter ruling complies with all of the applicable requirements of this
revenue procedure, and fully and clearly presents the issues, is a factor in determining whether
expedited treatment will be granted. If Employee Plans Rulings and Agreements agrees to process
a request out of order, it cannot give assurance that any letter ruling will be processed by the time
requested. The scheduling of a closing date for a transaction or a meeting of the board of directors
or shareholders of a corporation, without regard for the time it may take to obtain a letter ruling,
will not be considered a sufficient reason to process a request ahead of its regular order. Also, the
possible effect of fluctuation in the market price of stocks on a transaction will not be considered
a sufficient reason to process a request out of order.

Because most requests for letter rulings cannot be processed ahead of their regular order,
Employee Plans Rulings and Agreements urges all taxpayers to submit their requests well in
advance of the contemplated transaction. In addition, in order to facilitate prompt action on letter
ruling requests taxpayers are encouraged to ensure that their initial submissions comply with all
of the requirements of this revenue procedure (including the requirements of other applicable
guidelines set forth in sections 1.03 and 26.02 of this revenue procedure), and to provide promptly
any additional information requested by Employee Plans Rulings and Agreements.

Facsimile transmission
(fax)

### (4) To receive a letter ruling or submit a request for a letter ruling by facsimile transmission (fax).

(a) To receive a letter ruling by fax. A letter ruling ordinarily is not sent by fax. 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).

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.

Employee Plans Rulings and Agreements will take certain precautions to protect confidential
information. For example, Employee Plans Rulings and Agreements 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.

(b) To submit a request for a letter ruling by fax. 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 applicable office 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 in a request for a letter ruling should indicate this in writing when, or soon after, filing the request.

Address to send the request

.04

The addresses for sending requests are provided in section 31 of this revenue procedure.

Pending letter ruling requests

.05

(1) Circumstances under which the taxpayer must notify Employee Plans Rulings and Agreements. The taxpayer must notify Employee Plans Rulings and Agreements if, after the letter ruling request is filed but before a letter ruling is issued, the taxpayer knows that-

(a) an examination of the issue or the identical issue on an earlier year's return has been started by an Examinations office of the Service;

(b) the issue is being considered by the PBGC or the DOL; or

(2) Taxpayer must notify Employee Plans Rulings and Agreements if return is filed and must attach request to return. If the taxpayer files a return before a letter ruling is received from Employee Plans Rulings and Agreements concerning the issue, the taxpayer must notify Em- ployee Plans Rulings and Agreements that the return has been filed. The taxpayer must also attach a copy of the letter ruling request to the return to alert the Employee Plans Examinations office and thereby avoid premature Employee Plans Examinations office action on the issue.

When to attach letter ruling to return

.06 If, before filing a return, a taxpayer receives a letter ruling about any transaction that is relevant to the return, the taxpayer must attach a copy of the letter ruling to the return when it is filed.

How to check on status of request

.07 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.

SECTION 7. WHAT
ACTIONS ARE TAKEN
IF A REQUEST IS
WITHDRAWN OR
EMPLOYEE PLANS
RULINGS AND
AGREEMENTS
DECLINES TO ISSUE A
LETTER RULING OR
DETERMINATION
LETTER?

## In general

.01 A taxpayer may withdraw a request for a letter ruling or determination letter at any time
before the letter ruling or determination letter is signed by Employee Plans Rulings and
Agreements. Correspondence and exhibits related to a request that is withdrawn or related to a

letter ruling request or determination letter request for which Employee Plans Rulings and
Agreements declines to issue a letter ruling or determination letter will not be returned to the
taxpayer. See section 6.02(2) of this revenue procedure.

The processing of a request for a letter ruling or determination letter will not be suspended in
Employee Plans Rulings and Agreements at the request of a taxpayer.

Notification of appropriate Service official

.02 If a taxpayer withdraws a request for a letter ruling, or if Employee Plans Rulings and Agreements declines to issue a letter ruling, Employee Plans Rulings and Agreements will notify the appropriate Service official in the operating division that has examination jurisdiction of the taxpayer's tax return. Employee Plans Rulings and Agreements also may give the Service official its views on the issues in the request to consider in any later examination of the return. See section 10.16 of this revenue procedure regarding the withdrawal of a determination letter application.

Refunds of user fee

.03 The user fee will not be returned for a letter ruling or determination letter request that is withdrawn. If Employee Plans Rulings and Agreements declines to issue a letter ruling on all of the issues in the request or declines to issue a determination letter, the user fee will be returned. If Employee Plans Rulings and Agreements, however, issues a letter ruling on some, but not all, of the issues, the user fee will not be returned.

# PART II. PROCEDURES FOR DETERMINATION LETTER REQUESTS

# PART IIA. REQUESTING DETERMINATION LETTERS

SECTION 8. IN WHAT
AREAS ARE
DETERMINATION
LETTERS ISSUED?

Circumstances under
which determination letters
are issued

.01 Employee Plans Rulings and Agreements issues determination letters in response to
taxpayers' written requests on completed transactions on matters within its jurisdiction.

Employee Plans Rulings and Agreements does not issue determination letters on the tax
consequences of proposed transactions, except 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.

Neither Employee Plans Rulings and Agreements nor any other office issues determination
letters on plans under § 403(b). However, for information regarding the procedures for obtaining
opinion and advisory letters for prototype plans and VS plans under § 403(b), see Rev. Proc.
2013-22, as modified by Rev. Proc. 2014-28 and Rev. Proc. 2015-22.

Types of requests

.02 Determination letters may be requested on completed and proposed transactions as set forth
in the table below:

TYPE OF REQUEST

FORMS

REV. PROC. SECTION

1. Initial Qualification

a. Individually-designed plans (including collec- tively bargained plans)

5300

b. Pre-approved plans

5300

c. Employee Stock Ownership Plans ("ESOPs")

5300, 5309

d. Multiple employer plans

5300

e. Group trusts

5316

TYPE OF REQUEST

FORMS

REV. PROC. SECTION

f. § 414(x) combined plans

5300

2. Termination

a. In general

5310, 6088

b. Multiemployer plan covered by PBGC insur- ance

5300, 6088, Cover letter

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.

3. Volume Submitter Plans Adoption of VS plans (if the employer has made modifications that are not extensive to the language of the approved specimen plan)

5307

4. M&amp;P and Volume Submitter Plans

a. Adoption of VS multiple employer plan (if the controlling member has made modifications that are not extensive)

5300

b. Adoption of VS plan (if the employer has made extensive modifications)

5300

c. Adoption of M&amp;P plan (if the employer has made any modifications)

5300

d. Adoption of M&amp;P plan (if employer has modi- fied plan to add overriding language to satisfy §§ 415 or 416)

5300 or 5307

e. Adoption of M&amp;P or VS plan (if the employer

5300

requests a determination that the plan's normal
retirement age satisfies § 1.401(a)-1(b)(2))

Note: The types of requests listed in 3 and 4 above apply to determination letter requests submitted pursuant to Rev. Proc.
2015-36. The provisions of Rev. Proc. 2017-41 relating to the eligibility of adopting employers to submit determination
letter requests during the third (and subsequent) six-year remedial amendment cycles will be set forth in future revisions to
this revenue procedure.

## 5. Special Types of Requests

a. Leased employees (§ 414(n))

5300, Cover letter
17

b. Partial termination

5300, Cover letter

9.09

c. Section 401(h) determination letters

5300, Cover letter
18

5300, Cover letter,
18

d. Section 420 determination letters including
other matters under § 401(a)

Checklist

e. Section 420 determination letters excluding
other matters under § 401(a)

Cover letter, Check-

list

Areas in which
determination letters will
not be issued

.03 Determination letters issued in accordance with this revenue procedure do not include
determinations involving the following:

(1) Issues involving §§ 72, 79, 105, 125, 127, 129, 402, 403 (other than 403(a)), 404, 409(l),
409(n), 412, 414(h)(2), 415(m), 457, 511 through 515, and 4975 (other than 4975(e)(7));

(2) Plans or plan amendments for which automatic reliance is granted pursuant to section 19
of Rev. Proc. 2015-36, or section 7 of Rev. Proc. 2017-41;

(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, as clarified and modified by Rev.
Rul. 2004-67, 2004-2 C.B. 28; Rev. Rul. 2011-1, 2011-2 I.R.B. 251; Notice 2012-6, 2012-3
I.R.B. 293, and Rev. Rul. 2014-24, 2014-37 I.R.B. 529;

(b) An amendment that merely adjusts the maximum limitations under § 415 to reflect annual
cost-of-living increases under § 415(d), 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 contri-
butions made as a result of mistake of fact;

(4) Determination letter requests with respect to plans that combine an ESOP (as defined in
§ 4975(e)(7)) with retiree medical benefit features described in § 401(h) (sometimes referred to
as an HSOP):

(a) In general, determination letters will not be issued with respect to plans that combine an
ESOP with another ESOP containing 401(h) features 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 ESOP that contains 401(h) features in a plan
adversely affects its qualification under § 401(a);

(b) However, an arrangement will not be considered covered by section 8.03(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; and

(5) Any issue if the same issue involving the same taxpayer or a related taxpayer is pending in
a case in litigation or before an Appeals Office.

### Determination letter applications

.04 The Service will accept applications for determination letters for plans seeking initial
qualification and terminating plans any time during the year. See section 12 of Rev. Proc.
2016-37.

### Review of determination letters

.05 Determination letters issued under this revenue procedure generally are not reviewed by
any other office of the Service before they are issued. If a taxpayer believes that the conclusion

reached in a determination letter is in error, the taxpayer may ask Employee Plans Rulings and
Agreements to reconsider the matter or to request technical advice from the Office of Associate
Chief Counsel (Tax Exempt and Government Entities) as described in Rev. Proc. 2018-2, this
Bulletin.

#### SECTION 9. WHAT IS THE GENERAL SCOPE OF A DETERMINATION LETTER?

Scope of this section

.01 This section delineates, generally, the scope of a determination letter issued by Employee Plans Rulings and Agreements. This section also identifies certain qualification requirements that are not considered by the Employee Plans Rulings and Agreements 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 relating to the qualified status of group trusts; and certain 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 23 of this revenue procedure.

Scope of determination letters

.02 In general, employee plans are reviewed by Employee Plans Rulings and Agreements for compliance with the form requirements (that is, those plan provisions that are required as a condition of qualification under § 401(a)). For terminating plans, the requirements are those that apply as of the date of termination. See Rev. Proc. 2016-37 for further details on the scope of Employee Plans Rulings and Agreements' review of determination letter applications.

Design-based safe harbor

.03 Generally, a plan will not be reviewed for, and a determination letter may not be relied on with respect to, whether a plan satisfies the nondiscrimination requirements of § 401(a)(4), the minimum participation requirements of § 401(a)(26), or the minimum coverage requirements of § 410(b). However, if the applicant elects, a plan will be reviewed for, and a determination letter may be relied on with respect to, whether the terms of the plan satisfy one of the design-based safe harbors in §§ 1.401(a)(4)-2(b) and 1.401(a)(4)-3(b) of the regulations (relating to nondis- crimination in amount of contributions and benefits). A defined contribution plan will also be reviewed for, and a determination letter may be relied on with respect to, whether a plan's terms satisfy the applicable requirements of §§ 401(k) and 401(m).

Governmental plans under § 414(d)

.04 A plan will not be reviewed for, and a determination letter does not constitute a ruling or determination as to, whether the plan is a governmental plan within the meaning of § 414(d). If a determination letter applicant represents on the application that the plan is a governmental plan within the meaning of § 414(d), the determination letter issued for the plan is predicated on that representation, and qualification is conditioned on the plan constituting a governmental plan within the meaning of § 414(d).

Church plans under § 414(e)

.05 A plan will not be reviewed for, and a determination letter does not constitute a ruling or determination as to, whether the plan is a church plan within the meaning of § 414(e). If a determination letter applicant represents on the application that the plan is a church plan within the meaning of § 414(e), the determination letter issued for the plan is predicated on that representation, and qualification is conditioned on the plan constituting a church plan within the meaning of § 414(e).

Tax treatment of certain contributions under § 414(h)

.06 A plan will not be reviewed for, and a determination letter does not constitute a ruling or determination as to, whether contributions to the plan satisfy § 414(h). A determination letter does

not express an opinion on whether contributions made to a plan treated as a governmental plan
defined in § 414(d) constitute employer contributions under § 414(h)(2).

Other limits on scope of determination letter

.07 A favorable determination letter does not provide reliance for purposes of §§ 404, 412, 430, 431, and 432 with respect to whether an interest rate (or any other actuarial assumption) is reasonable. A favorable determination letter does 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. A favorable determination letter does not constitute a determination with respect to the federal tax consequences of a lump sum risk-transferring program as described in Notice 2015-49, 2015-30 I.R.B. 79, except as explicitly provided in that notice.

Leased employees

.08 Applicants that are otherwise eligible to submit an application for a determination letter may elect that the letter include a determination as to whether leased employees are deemed employees of the employer under the meaning of § 414(n). See section 17 for procedures for requesting a leased employee determination.

Partial terminations

.09 Applicants may elect that a determination letter include a determination as to whether a partial termination has occurred with respect to the plan, and if so, its impact on plan qualification. An applicant may file a determination letter application on a Form 5300 and elect a determination regarding a partial termination, whether or not the plan is otherwise eligible to be submitted for a determination letter pursuant to sections 11.01 or 12.01 of this revenue procedure. However, if the plan is not otherwise eligible to be submitted for a determination letter, as provided in sections 11.01 or 12.01 of this revenue procedure, the scope of the determination letter issued with respect to the plan will be limited solely to the request regarding whether a partial termination has occurred.

Publication 794, Favorable Determination Letter

.10 Publication 794, Favorable Determination Letter, contains other information regarding the scope of a determination letter, including the requirement that all information submitted with the application be retained as a condition of reliance. In addition, the specific terms of each letter may further define its scope and the extent to which it may be relied upon. Publication 794 can also be found at http://www.irs.gov/Forms-&amp;-Pubs.

SECTION 10. WHAT IS
THE GENERAL
PROCEDURE FOR
REQUESTING
DETERMINATION
LETTERS?

Scope

.01 Section 6 of this revenue procedure and this section 10 contain procedures that are generally applicable to all determination letter requests. Additional procedures for specific types of requests are contained in sections 11 through 18 of this revenue procedure.

Complete information required

.02 An applicant requesting a determination letter must file the material required by this revenue procedure with Employee Plans Rulings and Agreements Determinations Office (EP Determinations) at the address provided in section 31 of this revenue procedure. The filing of the application, when accompanied by all information and documents required by this revenue procedure, will generally serve to provide EP Determinations with the information required to make the requested determination. However, in making the determination, EP Determinations may require the submission of additional information. If an application is determined by EP Determinations to be procedurally or technically deficient, EP Determinations may decline to

process the application and an applicant may be required to resubmit the entire application and
pay a new user fee in order to request a determination letter. See section 10.12 of this revenue
procedure for additional information. Information submitted to EP Determinations in connection
with an application for determination may be subject to public inspection to the extent provided
by § 6104. The applicant must include EPCRS documentation for any closing agreement or
compliance statement. This includes applicable attachments or model schedules and copies of
corrective amendments.

Complete copy of plan and
trust instrument and
applicable amendments
required

.03 In addition to a copy of the plan and trust documents and other material required by the
application, the determination letter application must also include a copy of all signed and dated
plan amendments (including interim amendments, if applicable) adopted or effective subsequent
to the most recent determination letter issued with respect to the plan (other than amendments
adopted on behalf of the employer that adopted a VS plan by the practitioner that sponsors the
employer's VS plan) even if these amendments are dated earlier than a previous determination
letter issued with respect to the plan. The application must also include the completed Procedural
Requirements Checklist that is set forth in Forms 5300, 5307, 5310, and 5316.

Submission of reference list
encouraged

.04 In order to facilitate the review of an application for a determination letter, an applicant is
encouraged to submit a completed reference list along with the application for the plan. A
reference list is a checklist that applicants may use to indicate the location in their plan document
of items set forth in all Required Amendment Lists, and all Cumulative Lists (as applicable). A
sample reference list will be made available at www.irs.gov. Submission of a reference list is not
mandatory.

Separate application for
each single § 414(l) plan

.05 A 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.

Prior letters

.06 If the plan (other than a plan submitting an application for initial determination) has
received a favorable determination letter in the past, the application must include a copy of the
latest determination letter. If a prior determination letter is not available, an explanation must be
included with the application, and the employer must include a copy of the prior plan or adoption
agreement, and the opinion or advisory letter, if applicable. The application also must include all
amendments necessary to verify that the plan was amended timely.

Plans involving mergers

.07 If the submitted plan is the result of a merger of two or more plans, the applicant must
include a copy of the prior determination letter for each of the plans that were combined to result
in the merged plan. If a prior determination letter is not available for any such plan involved in
a merger, an explanation must be included with the application, and the applicant must include
a copy of the prior plan document or adoption agreement, and the opinion or advisory letter for
the plan, if applicable. The application also must include all amendments necessary to verify that
each plan was amended timely. Additionally, for each plan involved in a merger the applicant
must provide all signed and dated plan amendments (including interim amendments, if applicable)
adopted or effective subsequent to the most recent determination letter issued with respect to the
plan.

User fees

.08 The appropriate user fee, if applicable, must be paid according to the procedures in section
30 of this revenue procedure. Form 8717, User Fee for Employee Plan Determination Letter
Request, must accompany each determination letter request. In addition, if the user fee for a
determination letter request is paid through www.pay.gov, submit a copy of the payment
confirmation in addition to Form 8717. If the criteria for the user fee exemption are met in
accordance with Notice 2017-1, 2017-2 I.R.B. 367, the certification on Form 8717 must be
signed. Stamped signatures are not acceptable.

##### Interested party notification and comment

.09 Before filing an application, the applicant requesting a determination letter must satisfy the
requirements of section 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 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 19 and 20 of this
revenue procedure.

Contrary authority must
be distinguished

.10 If the application for determination involves an issue with respect to which contrary
authorities exist, failure to disclose or distinguish such contrary authorities will result in requests
for additional information or the determination that the application is not complete and cannot be
processed.

##### Employer/employee relationship

.11 EP Determinations does not make determinations regarding the existence of an employer-
employee relationship as part of its determination on the qualification of a plan, but relies on the
applicant's representations or assumptions, stated or implicit, regarding the existence of such a
relationship. Taxpayers are reminded, however, that they may file Form SS-8, Determination of
Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the
Service to determine the employment status of the individuals involved prior to filing an
application for a determination letter on the qualified status of the plan. See section 12.04 of Rev.
Proc. 2018-1.

##### Incomplete applications

.12 This section provides procedures for processing incomplete applications.

(1) Procedural Completeness. Upon receipt, an application will be reviewed to determine if it
is procedurally complete. In order for an application to be procedurally complete, the application
must include all of the information and documents required by this revenue procedure, including
but not limited to the Form 5300 series application and the Procedural Requirements Checklist.
See section 10.03 of this revenue procedure.

(2) Procedurally Deficient Determination Letter Applications - Individually Designed Plans. A
procedurally deficient application must either be perfected in accordance with section 10.12(2)(a)
of this revenue procedure or resubmitted in accordance with section 10.12(2)(b).

(a) If an application is procedurally deficient, EP Determinations will send the applicant a letter
identifying the missing information. The applicant will have 30 days from the date of the letter
to submit the missing information identified. If the missing information is not sent (postmarked)
within 30 days of EP Determinations' letter, the case will be closed. The application will not be
returned, and any user fee with respect to the application will not be refunded.

(b) If a determination letter application for an individually designed plan is closed pursuant to
section 10.12(2)(a) of this revenue procedure, the applicant may resubmit the determination
application. In such case, the entire application must be resubmitted, including a new user fee (if
applicable).

(3) Procedurally Deficient Determination Letter Applications - Pre-approved Plans. A pro-
cedurally deficient application submitted by an adopter of an M&P or VS plan must either be
perfected in accordance with section 10.12(3)(a) of this revenue procedure or resubmitted in
accordance with section 10.12(3)(b).

(a) If an application submitted by an adopter of an M&P or VS plan is procedurally deficient,

EP Determinations will send the applicant a letter identifying the missing information. The
applicant will have 30 days from the date of the letter to submit the missing information identified.
If the missing information is not sent (postmarked) within 30 days of EP Determinations' letter,
the case will be closed. The application will not be returned, and any user fee with respect to the
application will not be refunded.

(b) If a determination letter application for an adopter of an M&P or VS plan is closed pursuant
to section 10.12(3)(a) of this revenue procedure, the applicant must resubmit the entire applica-
tion, including a new user fee (if applicable), by the end of the plan sponsor's remedial
amendment cycle, unless a later date is specified in EP Determinations' letter.

(c) If a determination letter application for an adopter of an M&P or VS plan is closed pursuant
to section 10.12(3)(a) and the postmark date of a response submitted pursuant to section
10.12(3)(a) occurs after the end of the plan sponsor's remedial amendment cycle, EP Determi-
nations will send the applicant a final disposition letter indicating that the remedial amendment
cycle will not be extended to allow the plan to be submitted for that cycle. The application will
not be returned, and any user fee with respect to the application will not be refunded.

(4) Technically deficient applications. An application that is procedurally complete will
proceed for a technical review. During the course of the review, EP Determinations may request
the submission of additional information.

(a) If EP Determinations needs additional information to process the application, the applicant
will be sent an information request with a response date.

(b) If the applicant's response to such information request is not timely or complete, a letter will
be sent to the applicant, giving a set period of time in which to respond.

(c) If a complete response is not received by the response deadline set forth in the letter
referenced in section 10.12(4)(b) of this revenue procedure, the case will be closed. The
application will not be returned and any user fee submitted with respect to the application will not
be refunded.

##### Effect of failure to disclose material fact

.13 EP Determinations 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 adversely affects the reliance that would otherwise be obtained through issuance
by EP Determinations 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 on the determination letter.

Where to file requests

.14 Requests for determination letters are to be addressed to EP Determinations at the address
provided in section 31 of this revenue procedure.

Determination letter applications will not be accepted via fax.

Submission of related plans

.15 If applications for two or more plans of the same employer are submitted together, each
application should include a cover letter that identifies the name of the employer and the plan
numbers and employer identification numbers of all the related plans submitted together. EP
Determinations will determine whether these applications will be worked simultaneously.

Withdrawal of requests

.16 The 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, however the applicant may submit a subsequent request for a determination letter pursuant to section 11 of this revenue procedure. The application must be accompanied with the appropriate user fee in accordance with section 30 of this revenue procedure. Any such application will be treated as an initial request.

Right to status conference

.17 An applicant for a determination letter has the right to a have a conference with the Director, EP Rulings and Agreements concerning the status of the application if the application has been pending at least 270 days. The status conference may be by phone or in person, as mutually agreed upon. During the conference, any issues relevant to the processing of the application may be addressed, but the conference will not involve substantive discussion of technical issues. No tape, stenographic, or other verbatim recording of a status conference may be made by any party. Subsequent status conferences may also be requested if at least 90 days have passed since the last preceding status conference.

How to request status conference

.18 A request for a status conference with the Director, EP Rulings and Agreements is to be made in writing and is to be sent to the specialist assigned to review the application or, if the applicant does not know who is reviewing the application, to the Director, EP Rulings and Agreements at the address provided in section 31 of this revenue procedure.

Correct format required

.19 Documents submitted should not be stapled or bound. The use of quickly removable clips or rubber bands is acceptable. The application form should be prepared using Courier 10 point font. Documents which must be unstapled or unbound may suffer data loss or may not scan properly, which impacts efficiency and delays processing the application.

SECTION 11. WHAT IS
THE PROCESS FOR
REQUESTING
DETERMINATION
LETTERS FOR
INDIVIDUALLY
DESIGNED PLANS?

Requesting determination
letters

.01 This section 11 contains the procedures for requesting determination letters for individually
designed plans. Determination letters will be issued with respect to individually designed plans
solely in the following circumstances:

(1) Initial qualification. See Rev. Proc. 2016-37, section 4.03(1), for a description of which
plans may be submitted on a Form 5300, Application for Determination for Employee Benefit
Plan, for initial qualification.

(2) Plan termination. See section 15 of this revenue procedure for additional procedures for
requesting determination upon plan termination.

(3) Certain other circumstances as may be set forth in guidance published in the Internal
Revenue Bulletin.

Elimination of Remedial Amendment Cycle for Individually Designed Plans

.02 Effective January 1, 2017, the staggered five-year remedial amendment cycle system for individually designed plans set forth in Rev. Proc. 2007-44 was eliminated. As of that date, EP Determinations no longer accepted determination letter applications based on the five-year remedial amendment cycle system.

Forms

.03 A determination letter request for the items listed in section 11.01 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, including a copy of the Procedural Requirements Checklist included therein, must be filed to request a determination letter for an individually designed plan, including a collectively bargained plan. See section 12.01 for circumstances under which an adopting employer that has modified an M&amp;P or VS plan may submit a determination letter request. In accordance with Rev. Proc. 2016-37, section 4.03(1), an employer may submit a plan for initial plan qualification on a Form 5300 as long as a favorable determination letter has never been issued with respect to the plan. Employers submitting requests on behalf of individually designed plans should file the most recent version of the Form 5300. (2) Form 5309, Application for Determination of Employee Stock Ownership Plan, must be filed as an attachment with a Form 5300 in order to request a determination whether the plan is an ESOP under § 409 or § 4975(e)(7).

(3) Form 5310, Application for Determination for Terminating Plan, including a copy of the Procedural Requirements Checklist included therein must be filed to request a determination for a terminating plan. Also, see section 15 of this revenue procedure for additional procedures pertaining to applications for determination upon plan termination.

(4) Form 8717, User Fee for Employee Plan Determination Letter Request (and the payment confirmation from www.pay.gov as described in section 10.08, if applicable). When completing the form, taxpayers should refer to the applicable Employee Plans user fees listed in Appendix A of this revenue procedure.

(5) Form 2848, Power of Attorney and Declaration of Representative.

(6) Form 8821, Tax Information Authorization.

Application must include copy of plan and amendments

.04 The application must include a copy of all signed and dated plan amendments (including interim amendments, if applicable) adopted or effective subsequent to the most recent determi- nation letter issued with respect to the plan even if these amendments are dated earlier than a previous determination letter issued with respect to the plan. The application must also include a copy of the restated plan and trust instrument, if applicable. The application must also include the appropriate completed Procedural Requirements Checklist as set forth in Forms 5300, 5310, and 5316. If a plan did not receive a prior favorable determination letter, all plan documents and amendments must be submitted. EP Determinations has the discretion to request copies of any other amendments during its review of a plan.

Restatements required

.05 If a sponsor of an individually designed plan has previously obtained a determination letter, the plan must be restated when it is submitted for a determination letter application, unless it is a terminating plan. Sponsors of terminating plans are encouraged, but not required to submit a restatement when submitting a determination letter application. Plans submitted during 2018 must be restated for compliance with the 2016 Required Amendments List, Notice 2016-80, as well as any applicable prior Cumulative List.

Section 414(x) combined plans

.06 EP Determinations will consider § 414(x) in issuing determination letters for individually designed plans that consist of a defined benefit plan and a qualified cash or deferred arrangement (subject to the eligibility requirements in section 11.01 of this revenue procedure). A § 414(x) plan sponsor must submit two Forms 5300 and two applicable user fees.

SECTION 12. WHEN
MAY AN ADOPTER OF
A MASTER AND
PROTOTYPE OR
VOLUME SUBMITTER
PLAN SUBMIT A
DETERMINATION
LETTER APPLICATION?

##### Eligibility to apply for a determination letter

.01 Rev. Proc. 2015-36 describes the procedures for requesting opinion letters and advisory
letters on M&P and VS plans for applications submitted with respect to cycles prior to the third
six-year remedial amendment cycle. This section 12 generally provides guidance on the eligibility
of an adopting employer of an M&P or VS plan that received an opinion or advisory letter,
pursuant to Rev. Proc. 2015-36, to submit a determination letter application with regard to that
plan. Rev. Proc. 2017-41 modified the pre-approved plan program and is applicable to providers
of pre-approved plans that submit requests for opinion letters with respect to the third (and
subsequent) six-year remedial amendment cycles. Guidance on the eligibility of an employer that
adopts a pre-approved plan that has received an opinion letter for the third (and subsequent)
six-year remedial amendment cycles to submit a determination letter application, and the
procedures for a submission with regard to such pre-approved plan, will be set forth in future
revisions to this revenue procedure.

(1) Except as provided in section 12.01(5)(a), an adopting employer of an M&P plan (whether
standardized or nonstandardized) may not apply for a determination letter for the plan on Form
5307.

(2) An adopting employer of a VS plan may not apply for a determination letter for the plan
on Form 5307 unless the employer has modified the terms of the approved plan, the approved plan
is not a multiple employer plan and the modifications are not extensive. Section 13 of this revenue
procedure describes the procedures for requesting determination letters on Form 5307 for a VS
plan in situations in which the employer has not made extensive modifications to the language of
the approved specimen plan and the approved plan is not a multiple employer plan.

(3) A controlling member of a VS multiple employer plan (eligible to receive a determination
letter as described in section 14.02 of this revenue procedure) that makes modifications to a VS
multiple employer plan in situations in which the modifications are not extensive, may apply for
a determination letter on Form 5300 in the two-year window described in section 13.03 of this
revenue procedure regardless of whether a prior favorable determination letter has been issued
with respect to the plan.

(4) An adopting employer that makes:

(a) Extensive modifications to an approved VS plan, or

(b) Any modification to an approved M&P plan,

may submit a determination letter application for the plan for initial plan qualification only during
the two-year window described in section 13.03 of this revenue procedure, using Form 5300, as
long as a favorable determination letter has never been issued with respect to the plan. See section
20 of Revenue Procedure 2016-37 regarding the effect of employer modifications on the six-year
remedial amendment cycle.

(5) Notwithstanding the preceding paragraph, an adopter of an M&P or VS plan that has made
no modifications other than the modifications listed in section 12.01(5)(a) and (b) of this revenue
procedure may submit an application for a determination letter on Form 5300 (or on Form 5307
in the case of an application submitted pursuant to 12.01(5)(a)) regardless of whether a prior
favorable determination letter has been issued with respect to the plan. Such an application may
only be submitted during the two-year window described in section 13.03 of this revenue
procedure.

(a) The employer has modified the terms of the M&P plan by adding overriding language
necessary to coordinate the application of the limitations of § 415 or the requirements of § 416
because the employer maintains multiple plans.

(b) The plan is a pension plan and the normal retirement age under the plan is lower than 62.
In this case, a determination letter is required for reliance that the plan's normal retirement age
satisfies the requirements of § 1.401(a)-1(b)(2) of the regulations.

An employer that submits an application for a determination letter for an M&P or VS plan for
one or more of the reasons described in section 12.01(5)(a) and (b) of this revenue procedure must
identify the applicable reason or reasons in a cover letter to the application and include a copy of
the VS or M&P opinion or advisory letter.

If an adopting employer submits an application for a determination letter for an M&P or VS
plan pursuant to section 12.01(2), (3), (4), or (5), the plan will be reviewed on the basis of the
Cumulative List that was used to review the underlying pre-approved plan.

(6) An adopting employer of an approved plan that is eligible to submit a determination letter
application on Form 5300 in accordance with section 12.01(3), (4), or (5) of this revenue
procedure may also request a determination regarding leased employee status (see section 17.05
of this revenue procedure).

(7) An adopting employer of an approved plan may request a determination regarding partial
termination (see section 9.09 of this revenue procedure) at any time, using Form 5300, regardless
of whether the employer is otherwise eligible to submit a determination letter application in
accordance with section 12.01(3), (4), or (5) of this revenue procedure.

Reliance equivalent to
determination letter

.02 If an employer can rely on a favorable opinion or advisory letter pursuant to section 19 of
Rev. Proc. 2015-36, as modified by Rev. Proc. 2016-37, or section 7 of Rev. Proc. 2017-41, the
opinion or advisory letter is equivalent to a favorable determination letter. For example, the
favorable opinion or advisory letter is treated as a favorable determination letter for purposes of
section 23 of this revenue procedure, regarding the effect of a determination letter. Rev. Proc.
2015-36 also describes the extent to which adopting employers of such plans may rely on
favorable opinion or advisory letters without requesting individual determination letters.

# SECTION 13. WHAT ARE THE DETERMINATION LETTER FILING PROCEDURES FOR VOLUME SUBMITTER PLANS?

Scope

.01 This section contains procedures for requesting determination letters for adopting employ-
ers of VS plans, that received an advisory letter pursuant to Rev. Proc. 2015-36 for the second
six-year remedial amendment cycle, in situations in which the employer has made modifications
to the approved specimen plan that are not extensive.

Determination letter for
adoption of volume
submitter plan

.02 An application filed on Form 5307, Application for Determination for Adopters of Modified
Volume Submitter Plans, must include any interim plan amendments unless the VS plan autho-
rizes the practitioner to amend on behalf of the adopting employer. EP Determinations may,
however, request evidence of adoption of interim amendments during the course of its review of
a particular plan. With respect to determination letters for adopting employers of VS plans:

(1) An application for a determination letter for an employer's adoption of an approved VS plan
in situations in which the employer has made modifications to the language of the approved
specimen plan that are not extensive must be sent to the address provided in section 31 of this
revenue procedure. For VS plans involved in plan mergers, see section 10.07 of this revenue
procedure.

(2) The application for a determination letter must include the following:

(a) Form 8717, User Fee for Employee Plan Determination Letter Request (and the payment
confirmation from www.pay.gov as described in section 10.08 of this revenue procedure, if
applicable);

(b) Form 5307, Application for Determination for Adopters of Modified Volume Submitter
Plans, including a copy of the Procedural Requirements Checklist included therein;

(c) Form 2848, Power of Attorney and Declaration of Representative, or other written
authorization allowing the VS practitioner to act as a representative of the employer with respect
to the request for a determination letter;

(d) Form 8905, Certification of Intent to Adopt a Pre-approved Plan, executed before the end
of the employer's 5-year remedial amendment cycle as determined under Part III of Rev. Proc.
2007-44, if applicable;

(e) A copy of the most recent advisory letter for the practitioner's VS specimen plan;

(f) A complete copy of the plan and trust instrument and, if applicable, a copy of the completed
adoption agreement;

(g) A written representation (signature optional) made by the VS practitioner that explains how
the plan and trust instrument differ from the approved specimen plan, describing the location,
nature, and effect of each deviation from the language of the approved specimen plan;

(h) A copy of the plan's latest favorable determination letter, if applicable;

(i) Applications filed on Form 5307 for VS plans in situations in which the employer has made
modifications that are not extensive to the language of the approved specimen plan, and the plan
does not authorize the practitioner to amend on behalf of the adopting employer, must include any
interim amendments that were adopted for qualification changes on the applicable Cumulative
List used in reviewing and approving the underlying VS plan; and

(j) Any other information or material that may be required by EP Determinations.

(3) Deviations from the language of the approved specimen plan will be evaluated based on the
extent and complexities of the changes. If the changes are determined to be extensive, EP
Determinations will require the applicant to file Form 5300 and pay the higher user fee. If the
changes are too extensive to be compatible with the VS program, the adopting employer's plan
will not be eligible for the VS program. See section 20.03(5) of Rev. Proc. 2016-37.

(4) An employer will not be treated as having adopted a VS plan if the employer has signed
or otherwise adopted the plan prior to the date on the VS specimen plan's advisory letter. In this
case, the determination letter application for the employer's plan may not be filed on Form 5307
and will not be eligible for a reduced user fee. A determination letter application for a VS plan
must be based on the approved VS specimen plan with any applicable modifications. See section
19.03 of Rev. Proc. 2015-36.

Timing of determination
letter applications for
adopting employers of pre-
approved plans

.03 In accordance with section 14 of Rev. Proc. 2016-37, adopting employers of M&P and VS
plans have a six-year remedial amendment cycle. The deadline for an adopting employer to adopt
the approved M&P or VS plan closes with the two-year window at the end of the plan's remedial
amendment cycle. An adopting employer of a modified VS plan that desires to obtain a
determination letter for reliance must submit the application within the two-year window, except
for a request for a determination on partial termination pursuant to section 12.01(7). Applications
(other than those pursuant to section 12.01(7)) submitted outside of the two-year window will be
returned.

SECTION 14. WHAT
ARE THE
DETERMINATION
LETTER FILING
PROCEDURES FOR
INDIVIDUALLY
DESIGNED MULTIPLE
EMPLOYER PLANS?

Scope

.01 This section contains procedures for applications filed with respect to plans described in
§ 413(c). A plan is not described in § 413(c) if all the employers maintaining the plan are
members of the same controlled group or affiliated service group under § 414(b), (c), or (m).

Applicant must request
letter for plan in the name
of the controlling member

.02 A determination letter applicant for a multiple employer plan that is otherwise eligible to
apply for a determination letter must request a letter for the plan in the name of the controlling
member (the employer who sponsors the multiple employer plan). An applicant requesting a letter
for the plan submits one Form 5300 application for the plan in the name of the controlling
member, either including or omitting the design-based safe harbor questions. A participating
employer maintaining a multiple employer plan may not request its own determination letter but
may rely on a favorable determination letter issued to the controlling member, except with respect
to the requirements of §§ 401(a)(4), 401(a)(26), 401(l), 410(b), and 414(s), and, if the employer
maintains or has ever maintained another plan, §§ 415 and 416.

Where to file requests

.03 The application is to be sent to the address provided in section 31. See Appendix A, section .06(1)(d) and (e) for the applicable user fee.

Addition of employers

.04 The controlling member may continue to rely on its favorable determination letter after another employer commences participation in the controlling member's multiple employer plan. An employer that commences participation in the multiple employer plan after a controlling member receives a favorable determination letter may rely on the determination letter of the controlling member.

SECTION 15. WHAT
ARE THE PROCEDURES
FOR FILING A
REQUEST FOR A
DETERMINATION UPON
TERMINATION OR
DISCONTINUANCE OF
CONTRIBUTIONS,
NOTICE OF MERGER,
CONSOLIDATION, ETC?

## Scope

.01 This section contains procedures for requesting determination letters involving plan
termination or discontinuance of contributions. This section also contains procedures regarding
required notices of merger, consolidation, or transfer of assets or liabilities.

.02 Required Forms

Forms

(1) Form 5310, Application for Determination for Terminating Plan, including a copy of the
Procedural Requirements Checklist included therein, is filed by plans other than multiemployer
plans covered by the insurance program of the PBGC.

(2) Form 5300, Application for Determination of Employee Benefit Plan, including a copy of
the Procedural Requirements Checklist included therein, is filed in the case of a multiemployer
plan covered by PBGC insurance.

(3) Form 6088, Distributable Benefits from Employee Pension Benefit Plans, is filed in addition
to Form 5310 or 5300 by a sponsor or plan administrator of a defined benefit plan or an
underfunded defined contribution plan that files 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.
See the instructions for Form 6088 for information required to be submitted along with the form,
including a statement explaining how plan present values were determined.

(4) 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 a merger, consolidation, or transfer of assets and liabilities. The filing
of Form 5310-A will not result in the issuance of a determination letter.

(5) Form 8717, User Fee for Employee Plan Determination Letter Request (and the payment
confirmation from www.pay.gov as described in section 10.08 of this revenue procedure, if
applicable).

(6) Form 2848, Power of Attorney and Declaration of Representative. If applicable, submit
Form 8821, Tax Information Authorization.

(7) Schedule SB (Form 5500), Single-Employer Defined Benefit Plan Actuarial Information, for defined benefit plans.

Supplemental information

.03 The application for a determination letter involving plan termination must also include any supplemental information or schedules required by the forms or form instructions. For example, the application must include copies of all records of actions taken to terminate the plan (such as a resolution of the board of directors) and a schedule providing certain information regarding employees who separated from vesting service with less than 100% vesting. In cases involving the termination of plans that contain a § 401(h) feature, a cover letter must accompany the submission, and it must reference the § 401(h) feature to make clear that this feature is part of the termination application. The cover letter must specifically state the location of plan provisions that relate to the § 401(h) feature. In the case of the termination of a multiemployer plan, there must be a cover letter accompa- nying the submission, which specifies that it is an application for a termination of a multiemployer plan.

Compliance with Title IV of ERISA

.04 In 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 the 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

.05 A plan that terminates after the effective date of a change in law, but prior to the date that amendments related to the change in law 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 must meet all the applicable provisions of any change in law. See section 7 of Rev. Proc. 2016-37.

An application will be deemed to be filed in connection with plan termination if it is filed no later than the later of (i) one year after the effective date of the termination, or (ii) one year after the date on which the action terminating the plan is adopted. However, in no event may the application be filed later than twelve months from the date of distribution of substantially all plan assets in connection with the termination of the plan.

Restatement not required for terminating plan

.06 An applicant for a terminating plan is encouraged to submit a restatement when applying for a determination; however, a restatement for a terminating plan generally is not required.

# SECTION 16. WHAT ARE THE DETERMINATION LETTER FILING PROCEDURES FOR GROUP TRUSTS?

## Scope

.01 This section provides special procedures for requesting a determination letter on the
qualified status of a group trust under Rev. Rul. 81-100, as clarified and modified by Rev. Rul.
2004-67, Rev. Rul. 2011-1, Notice 2012-6, and Rev. Rul. 2014-24.

## Required information

.02 A request for a determination letter on the status of a group trust is made by submitting a
Form 5316, Application for Group or Pooled Trust Ruling, demonstrating how the group trust
satisfies the criteria listed in Rev. Rul. 2011-1, together with the trust instrument and related
documents. Rev. Rul. 2004-67 extends the ability to participate in group trusts to eligible
governmental plans under § 457(b) and clarifies the ability of certain individual retirement
accounts under § 408 to participate. Rev. Rul. 2011-1 extends the ability to participate in group
trusts to custodial accounts under § 403(b)(7), retirement income accounts under § 403(b)(9), and
governmental retiree benefit plans under § 401(a)(24). There are two model amendments in Rev.
Rul. 2011-1. Amendment 1 is for a group trust that received a determination letter from EP
Determinations prior to January 10, 2011, that the group trust satisfies Rev. Rul. 81-100, but that
does not satisfy the separate account requirement of paragraph (6) of the holding of Rev. Rul.
2011-1. Amendment 2 is for a group trust that received a determination letter from EP
Determinations prior to January 10, 2011, that the group trust satisfies Rev. Rul. 81-100, as
modified by Rev. Rul. 2004-67, and that intends to permit custodial accounts under § 403(b)(7),
retirement income accounts under § 403(b)(9), or § 401(a)(24) governmental retirement plans to
participate in the group trust. Rev. Rul. 2014-24 extends the ability to participate in a group trust
to certain retirement plans qualified only under the Código de Rentas Internas para un Nuevo
Puerto Rico de la Ley Núm. 1 de 31 de enero de 2011 ("Puerto Rico Code"), and clarifies that
assets held by certain separate accounts maintained by insurance companies may be invested in
group trusts that satisfy Rev. Rul. 81-100.

Forms

.03 Required Forms

(1) Form 8717, User Fee for Employee Plan Determination Letter Request (and the payment
confirmation from www.pay.gov as described in section 10.08, if applicable).

(2) Form 2848, Power of Attorney and Declaration of Representative. If applicable, submit
Form 8821, Tax Information Authorization.

(3) Form 5316, Application for Group or Pooled Trust Ruling, including a copy of the
Procedural Requirements Checklist.

SECTION 17. WHAT
ARE THE PROCEDURES
FOR FILING A
REQUEST FOR A
DETERMINATION OF
LEASED EMPLOYEE
STATUS?

Scope

.01 This section provides procedures for determination letter requests on whether an employee
is a leased employee and is deemed to be an employee of the recipient employer for qualification

purposes under § 414(n). For an individually designed plan, an applicant may file a determination
letter request on whether an employee is a leased employee and is deemed to be an employee of
the recipient employer for qualification purposes under § 414(n) only if the plan is otherwise
eligible to be submitted for a determination letter pursuant to section 11.01 of this revenue
procedure.

Employer must request the
determination under
§ 414(n)

.02 Generally, a determination letter will indicate whether an employee is a leased employee
and is deemed to be an employee of the recipient employer under § 414(n) only if the employer
requests such determination and submits with the determination letter application the information
specified in section 17.06 of this revenue procedure.

Forms

.03 Form 5300 is submitted for a request on leased employee status. Form 5307 cannot be used
for this purpose. In addition to the Form 5300, there must be a cover letter accompanying the
submission, specifying that it is an application for determination of leased employee status.

Employer is responsible for
determining continuing
status under § 414(n)

.04 A determination letter on leased employee status under § 414(n) is based solely on the facts
submitted at the time of the application. An employer that is the recipient of services of leased
employees within the meaning of § 414(n) is responsible for determining, at any other time,
whether it meets the requirements of § 401(a), and if a leased employee is deemed to be an
employee of the recipient for qualified plan purposes.

Pre-approved plans

.05 An employer that has adopted a pre-approved plan, and that is otherwise eligible to submit
a determination letter request pursuant to section 12.01(6), may request a determination with
respect to § 414(n). The employer must submit with Form 5300 the information required by
section 17.06 of this revenue procedure and any other materials necessary for EP Determinations
to make a determination. If an employer that has adopted a pre-approved plan requests a
determination regarding leased employees, the plan will be reviewed on the basis of the
Cumulative List that was used to review the underlying pre-approved plan. See section 12.01(6)
of this revenue procedure.

## Required information for § 414(n) determination

.06 A determination letter will be issued with respect to § 414(n) only if the employer requests
and is otherwise eligible to receive such a determination, and the application includes:

(1) A description of the nature of the business of the recipient organization;

(2) A copy of the relevant leasing agreement(s);

(3) 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);

(4) A description of facts and circumstances relevant to a determination of whether such leased
employees' services are performed under primary direction or control by the recipient organiza-
tion (including whether the leased employees are required to comply with instructions of the
recipient about when, where, and how to perform the services, whether the services must be
performed by particular persons, whether the leased employees are subject to the supervision of
the recipient, and whether the leased employees must perform services in the order or sequence
set by the recipient); and

(5) 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 descrip-
tion of such plan(s) (including a description of the contributions or benefits provided for all leased
employees that are attributable to services performed for the recipient organization, plan eligi-
bility, and vesting).

# SECTION 18. WHAT ARE THE PROCEDURES FOR REQUESTING SECTION 401(h) AND SECTION 420 DETERMINATION LETTERS?

Scope

.01 This section provides procedures for requesting determination letters (i) with respect to
whether the requirements of § 401(h) are satisfied in a plan with retiree medical benefit features,
and (ii) 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) or to an applicable life insurance account
in the plan.

## Required information for § 401(h) determination

.02 EP Determinations will issue a determination letter that considers whether the requirements
of § 401(h) are satisfied in a plan with retiree medical benefit features only if the plan sponsor
requests such a determination, the plan is otherwise eligible to apply for a determination letter,
and the sponsor's application includes, (in addition to the application forms and any other material
required by this revenue procedure) a cover letter that requests consideration of § 401(h). The
cover letter must specifically state that consideration is being requested with regard to § 401(h)
in addition to other matters under § 401(a) and must specifically state the location of plan
provisions that satisfy the requirements of § 401(h) (Part I of the checklist in Appendix C of this
revenue procedure must be used to identify the location of relevant plan provisions).

## Required information for § 420 determination

.03 EP Determinations will consider the qualified status of certain plan language designed to
comply with § 420 only if the plan sponsor requests such consideration with Form 5300. 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) (if consideration of other matters under § 401(a) is being requested, the
application forms and other material required by this revenue procedure must also be submitted).
The cover letter must specifically state the location of plan provisions that satisfy each of the
following requirements (Parts I and II of the checklist in Appendix C of this revenue procedure
must 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, if
there is a transfer from a defined benefit plan to both a health benefits account and to an applicable
life insurance account in the same taxable year, both transfers are treated as one transfer.

(4) The plan must provide that the amount transferred will not exceed the amount that is
reasonably estimated to be the amount the employer will pay out (whether directly or through
reimbursement) of the health benefit account and applicable life insurance account during the
taxable year of the transfer for "qualified current retiree liabilities," as defined in § 420(e)(1).

(5) The plan must provide that no transfer will be made after December 31, 2025.

(6) The plan must provide that any assets transferred, and any income allocable to such assets,
will 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) or an applicable life insurance account that are not used to
pay qualified current retiree health liabilities will 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.

(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), as amended. 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, and separately for applicable life insurance benefits with respect to
individuals 65 or older at any time during the taxable year and with respect to individuals under
age 65 during the taxable year.

(11) The plan must provide that transferred assets will not be used for key employees (as
defined in § 416(i)(1)).

# PART IIB. INTERESTED PARTY NOTICE AND COMMENT

SECTION 19. WHAT
RIGHTS TO NOTICE
AND COMMENT DO
INTERESTED PARTIES
HAVE?

Rights of interested parties

.01 Persons who qualify as interested parties under § 1.7476-1(b), have the following rights:

(1) To receive notice, in accordance with section 20 of this revenue procedure, 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 DOL 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 DOL was
requested to comment but declined.

## Comments by interested parties

.02 Comments submitted by interested parties must be received by EP Determinations by the
45th day after the day on which the application for determination is received by EP Determina-
tions (however, see sections 19.03 and 19.04 of this revenue procedure for filing deadlines in
cases in which the DOL 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 6.02(11)), and addressed to:

Internal Revenue Service
EP Determinations
Attn: Customer Service Manager
P.O. Box 2508
Cincinnati, OH 45202

Comments must 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 adminis-
trator;

(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; or

(d) Employees not eligible to participate under the plan;

(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 qualifi-
cation, should be sent (the address designated for notice by the Service will also be used by the

DOL 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).

### Requests for DOL to submit comments

.03 A request to the DOL to submit to EP Determinations a comment pursuant to section
3001(b)(2) of ERISA must be made in accordance with the following procedures.

(1) The request must be received by the DOL by the 25th day after the day the application for
determination is received by EP Determinations. However, if the parties requesting the DOL to
submit a comment wish to preserve the right to comment to EP Determinations in the event the
DOL declines to comment, the request must be received by the DOL by the 15th day after the day
the application for determination is received by EP Determinations.

(2) The request to the DOL to submit a comment to EP Determinations must:

(a) Be in writing;

(b) Be signed as provided in section 19.02 above;

(c) Contain the names of the interested parties requesting the DOL 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 19.02(6) of this revenue procedure);

(d) Contain the information prescribed in section 19.02(2), (3), (4), (5), and (6) of this revenue
procedure;

(e) Indicate that the application was or will be submitted to EP Determinations at the address
provided in section 31 of this revenue procedure;

(f) Contain a statement of the specific matters upon which the DOL'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
Employee Benefits Security 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

.04 If a request described in section 19.03 of this revenue procedure is made and the DOL
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 EP Determinations 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
EP Determinations or the 15th day after the day on which notification is given by the DOL that

it declines to submit a comment on such matter (see section 19.07 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 requirements of section 19.02 of this revenue procedure and include a statement that the comment is being submitted on matters raised in a request to the DOL upon which the DOL declined to comment.

Confidentiality of comments

.05 For rules regarding the confidentiality of contents of written comments submitted by interested parties to the Service pursuant to section 19.02 or 19.04 of this revenue procedure, see § 601.201(o)(5) of the Statement of Procedural Rules.

Availability of comments

.06 For rules regarding the availability to the applicant of copies of all comments on the application submitted pursuant to section 19.01(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

.07 An application for an advance determination, a comment to EP Determinations, or a request to the DOL shall be deemed made when it is received by EP Determinations or the DOL. Notification by the DOL 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 20.01 of this revenue procedure shall be deemed given when it is posted or sent to the person in the manner described in § 1.7476-2. In the case of an application, comment, request, notification, or notice that is sent by mail or a private delivery service that has been designated under § 7502(f), the date as of which it shall be deemed received will be determined under § 7502. However, if such an application, comment, request, notification, or notice is not received within a reasonable period from the date determined under § 7502, the immediately preceding sentence shall not apply.

#### SECTION 20. WHAT ARE THE GENERAL RULES FOR NOTICE TO INTERESTED PARTIES?

Notice to interested parties

.01 Notice that an application for an advance determination regarding the qualification of a plan
that is described in § 401, 403(a), 409, or 4975(e)(7) and that is subject to § 410 is to be made
must be given to all interested parties in the manner prescribed in § 1.7476-2(c) and in
accordance with the requirements of this section. A notice to interested parties is deemed to be
provided in a manner that satisfies § 1.7476-2(c) if the notice is delivered using an electronic
medium under a system that satisfies the requirements of § 1.402(f)-1, Q&A-5.

Time when notice must be
given

.02 Notice must be given not less than 10 days nor more than 24 days prior to the day the
application for a determination is submitted. 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

.03 The notice referred to in section 20.01 of this revenue procedure 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, or all present employees eligible to
participate);

(2) The name of the plan, the plan identification number, and the name of the plan adminis-
trator;

(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 EP Determinations at the address provided in section 31 of this revenue procedure, and stating
whether the application relates to an initial qualification, termination, or partial termination;

(5) A description of the class of employees eligible to participate under the plan;

(6) Whether or not EP Determinations has issued a previous determination as to the qualified
status of the plan;

(7) A statement that any person to whom the notice is addressed is entitled to submit, or request
the DOL to submit, to EP Determinations 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 DOL to submit a comment and the DOL declines
to do so with respect to one or more matters raised in the request, the persons may still submit
a comment to EP Determinations with respect to the matters on which the DOL declines to
comment;

(8) The specific dates by which a comment to EP Determinations or a request to the DOL must
be received in order to preserve the right of comment (see section 19 of this revenue procedure);

(9) The number of interested parties needed in order for the DOL to comment; and

(10) Except to the extent that the additional informational material required to be made
available by sections 20.05 through 20.09 of this revenue procedure is included in the notice, a
description of a reasonable procedure whereby such additional informational material will be
available to interested parties (see section 20.04 of this revenue procedure). A sample notice
setting forth the above information in a case in which the additional information required by
sections 20.05 through 20.09 of this revenue procedure will be made available at places accessible
to the interested parties is provided in Exhibit B to this revenue procedure.

##### Procedures for making information available to interested parties

.04 The procedure referred to in section 20.03(10) of this revenue procedure, whereby the
additional informational material required by sections 20.05 through 20.09 of this revenue
procedure 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 by using a
method of delivery or a combination thereof that is reasonably calculated to ensure that all
interested parties will have access to the materials, 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

.05 Unless provided in the notice, or unless section 20.06 of this revenue procedure applies, there shall be made available to interested parties under a procedure described in section 20.04 of this revenue procedure:

(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 fewer than 26 participants

.06 If there would be fewer 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 20.05 of this revenue procedure 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; and

(5) A description of any optional forms of benefits described in § 411(d)(6) that have been reduced or eliminated by plan amendment.

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 fewer 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

.07 Information of the type described in § 6104(a)(1)(D) should not be included in the application, plan, or related trust agreement submitted to EP Determinations. Accordingly, such information should not be included in any of the material required by section 20.05 or 20.06 of this revenue procedure to be made available to interested parties.

Availability of additional information to interested parties

.08 Unless provided in the notice, there shall be made available to interested parties under a procedure described in section 20.04 of this revenue procedure any additional document dealing with the application which is submitted by or for the applicant to EP Determinations, or furnished by EP Determinations to the applicant; provided, however, if there would be fewer 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 any information described in § 6104(a)(1)(C) and (D)
which may be contained in such additional documents.

Availability of notice to
interested parties
.09 Unless provided in the notice, there shall be made available to all interested parties under
a procedure described in section 20.04 of this revenue procedure the material described in sections
19.02 through 19.07 of this revenue procedure.

# PART IIC. PROCESSING DETERMINATION LETTER REQUESTS

## SECTION 21. HOW DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS HANDLE DETERMINATION LETTER REQUESTS?

Oral advice

.01 Oral advice

(1) EP Determinations does not issue determination letters on oral requests. However, person- nel in EP Determinations ordinarily will discuss with taxpayers or their representatives inquiries regarding substantive tax issues, whether EP Determinations 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 EP Determinations 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 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

.02 EP Determinations may grant a pre-submission conference upon written request from a taxpayer or the taxpayer's 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 EP Determinations concludes that a conference would be warranted in the interest of facilitating review and determination when the plan, etc., is formally submitted. Statements made by EP Determinations at a pre-submission conference 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). See section 10.17 of this revenue procedure regarding the right to a status conference on applications pending for at least 270 days.

Determination letter based solely on administrative record

.03 Administrative record

(1) In the case of a request for a determination letter, the determination of EP Determinations 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 19.01(2), (3), and (4)
of this revenue procedure, and all correspondence relating to comments submitted between the
Service and persons (including the PBGC and the DOL) submitting comments pursuant to
sections 19.01(2), (3), and (4) of this revenue procedure; and

(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 19.01(2), (3), and (4) of this revenue procedure, 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 EP Determinations or the
Appeals office.

Notice of final
determination

.04 In the case of final determination, the notice of final determination shall be one of the
following:

(1) The letter issued by EP Determinations 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 in situations in which an interested party, the
DOL, or the PBGC has commented on the application for determination.

(2) The letter issued, by certified or registered mail, by EP Determinations 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

.05 EP Determinations 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 DOL if the
DOL has submitted a comment, and to the PBGC, if the PBGC has submitted a comment.

# SECTION 22. WHAT ARE THE STEPS FOR EXHAUSTING ADMINISTRATIVE REMEDIES?

In general

.01 For purposes of § 7476(b)(3), a petitioner is deemed to have exhausted the administrative remedies available within the Service upon the completion of the steps described in sections 22.02, 22.03, 22.04, or 22.05 subject, however, to sections 20.06 and 20.07 of this revenue procedure. 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 22.05 of this revenue procedure applies.

Steps for exhausting administrative remedies

.02 In the case of an applicant, with respect to any matter relating to the qualification of a plan, the steps referred to in section 22.01 of this revenue procedure are:

(1) Filing a completed application with EP Determinations 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 appropriate 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 EP Determinations.

Applicant's request for § 7805(b) relief

.03 In order for a petitioner to be deemed to have exhausted administrative remedies within the Service with respect to § 7805(b), an applicant must submit a request for relief under § 7805(b) to the Service in accordance with the procedures in section 23.08 of this revenue procedure. A request for relief under § 7805(b) must be submitted to the agent or specialist assigned to the case.

Interested parties

.04 In the case of an interested party or the PBGC, the steps referred to in section 22.01 of this revenue procedure are, with respect to any matter relating to the qualification of the plan, submitting to EP Determinations a comment raising such matter in accordance with section 19.01(2) of this revenue procedure, or requesting the DOL to submit to EP Determinations a comment with respect to such matter in accordance with section 19.01(3) of this revenue procedure and, if the DOL declines to comment, submitting the comment in accordance with section 19.01(4) of this revenue procedure, so that it may be considered by EP Determinations through the administrative process.

Deemed exhaustion of administrative remedies

.05 An applicant, an interested party, or the PBGC will not 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 section 22.01, 22.02, 22.03, or 22.04 of this revenue procedure, 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 in which there has not been a completion of all the steps referred to in section 22.02 of this revenue procedure, and the Service has proceeded with due diligence in processing the application for determination.

Service must have
reasonable time to act on
appeal

Service must have
reasonable time to act on
request for § 7805(b) relief

.06 The step described in section 22.02(3) of this revenue procedure will not be considered
completed until the Service has had a reasonable time to act upon the appeal.

.07 If the applicant has requested relief under § 7805(b), the applicant's administrative
remedies with respect to the § 7805(b) request will not be considered exhausted unless the
procedures for making a § 7805(b) request as set forth in section 23.08 of this revenue procedure
have been followed and the Service has had a reasonable time to act upon the request.

# SECTION 23. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?

May be relied on subject to
limitations

.01 A taxpayer ordinarily may rely on a determination letter received from EP Determinations
subject to the conditions and limitations described in this section.

Scope of reliance on
determination letter

.02

(1) A determination letter issued pursuant to this revenue procedure contains only the opinion
of EP Determinations 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 EP Determinations 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 below. EP Determinations 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 adversely affects the reliance that
would otherwise be obtained through the issuance by EP Determinations of a favorable deter-
mination 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 supporting data submitted with their applications. Failure to do so may limit the
scope of reliance.

(2) A determination letter issued to a sponsor of an individually designed plan on or after
January 4, 2016, will not include an expiration date. In addition, expiration dates included in
determination letters issued prior to January 4, 2016, are not operative.

(3) While 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.

Effect of subsequent
publication of revenue
ruling, etc.

.03 The 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 adminis-
trative pronouncement within the meaning of § 1.6661-3(b)(2) in cases in which:

(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 guidance for
subsequent years, in accordance with the rules set forth in Rev. Proc. 2016-37.

## Effect of subsequent amendment by employer

.04 In general, a plan sponsor that maintains a qualified plan for which a favorable determi-
nation letter has been issued and that is otherwise entitled to rely on the determination letter may
not continue to rely on the determination letter with respect to a plan provision that is subse-
quently amended or that is subsequently affected by a change in law. However, a plan sponsor
may continue to rely on a determination letter with respect to plan provisions that are not amended
by the employer or affected by a change in law.

## Revocation or modification of a determination letter

.05 If the Director, Employee Plans reaches a conclusion contrary to that expressed in a
determination letter, he or she has the authority to revoke or modify a determination letter in any
manner.

## Determination letter revoked or modified based on material change in facts applied retroactively

.06 The revocation or modification of a determination letter will be applied retroactively to the
taxpayer for whom the determination letter was issued or to a taxpayer whose tax liability was
directly involved in the determination letter if-

(1) there was a misstatement or omission of controlling facts;

(2) the facts at the time of the transaction are materially different from the controlling facts on
which the determination letter was based; or

(3) the transaction involves a continuing action or series of actions and the controlling facts
change during the course of the transaction.

## Not otherwise generally revoked or modified retroactively

.07 If the revocation or modification of a determination letter occurs, for reasons other than a
change in facts as described in section 23.06 of this revenue procedure, the revocation or
modification will generally not be applied retroactively to the taxpayer for whom the determi-
nation letter was issued or to a taxpayer whose tax liability was directly involved in the
determination letter provided that-

(1) there was no change in the applicable law;

(2) the determination letter was originally issued for a proposed transaction; and

(3) the taxpayer directly involved in the determination letter acted in good faith in relying on
the determination letter, and revoking or modifying the determination letter retroactively would
be to the taxpayer's detriment.

## Taxpayer may request that retroactive effect of revocation or modification be limited under § 7805(b)

.08 A taxpayer may seek relief from retroactive revocation or modification of a determination
letter under § 7805(b). A request for relief under § 7805(b) must be in writing and must be
submitted to the agent or specialist assigned to the case. The request for relief under § 7805(b)
must be submitted before issuance of the final adverse determination letter.

(1) Form of request for relief. A taxpayer's request to limit the retroactive effect of the
revocation or modification of the determination letter must-

(a) state that it is being made under § 7805(b);

(b) state the relief sought;

(d) include any documents bearing on the request.

(2) Notice of denial of request for relief. If the request for relief under § 7805(b) is denied,
the applicant will be notified in writing of the denial.

(3) Taxpayer must exhaust its administrative remedies. If a taxpayer seeks declaratory
judgment under § 7476 in response to a retroactive revocation or modification, to preserve judicial
review of a claim for relief under § 7805(b), the taxpayer must follow the steps in this revenue
procedure in order to have exhausted its administrative remedies with respect to its request under
§ 7805(b). If the taxpayer does not complete the applicable steps, the taxpayer will not have
exhausted its administrative remedies as required by § 7476(b)(3) with respect to its request for
§ 7805(b) relief, and will thus be precluded from obtaining § 7805(b) relief in any declaratory
judgment it seeks under § 7476.

If a taxpayer has requested § 7805(b) relief, the taxpayer's administrative remedies with respect
to its § 7805(b) request will not be considered exhausted until the Service has had a reasonable
amount of time to act upon the request.

# PART III. PROCEDURES FOR LETTER RULING REQUESTS

# PART IIIA. REQUESTING LETTER RULINGS

## SECTION 24. UNDER WHAT CIRCUMSTANCES DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS ISSUE LETTER RULINGS?

Scope limited to issues
specified

.01 Employee Plans Rulings and Agreements issues letter rulings on proposed transactions and
on completed transactions either before or after the taxpayer's return covering the issue presented
in a ruling request is filed. Employee Plans Rulings and Agreements only issues letter rulings
involving:

(1) § 72 (involving computation of the exclusion ratio only);

(2) Changes in funding methods (see Rev. Proc. 2017-57, 2017-44 I.R.B. 474) and actuarial
assumptions under § 412, 430, 431 or 433;

(3) Waiver of the liquidity shortfall (as that term is defined in § 430(j)(4)) excise tax under
§ 4971(f)(4);

(4) Waiver of the 60-day rollover requirement under §§ 402(c)(3) and 408(d)(3) (see Rev. Proc.
2003-16, 2003-4 I.R.B. 359, as modified by Rev. Proc. 2016-47, 2016-37 I.R.B. 37);

(5) 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);

(6) The tax consequences of prohibited transactions under §§ 503 and 4975;

(7) Whether individual retirement accounts established by employers or associations of employees
meet the requirements of § 408(c) (see Rev. Proc. 87-50; Rev. Proc. 92-38; Rev. Proc. 98-59; Rev.
Proc. 2002-10, and Rev. Proc. 2010-48, as modified by Appendix A of this revenue procedure);

(8) Requests for relief under § 301.9100 to recharacterize a Roth IRA (see section 24.03 of the
revenue procedure with respect to elections under § 301.9100-1 of the Procedure and Admin-
istration Regulations);

(9) Requests by the plan sponsor of a multiemployer pension plan for approval of an extension
of an amortization period in accordance with § 431(d), including requests in connection with an
extension of an amortization period involving whether a plan amendment is reasonable and
provides for only de minimis increases in plan liabilities in accordance with §§ 401(a)(33) and
412(c)(7)(B)(i) (see Rev. Proc. 2010-52, 2010-52 I.R.B. 927);

(10) Requests for the return to the employer of certain nondeductible contributions (see Rev.
Proc. 90-49, 1990-2 C.B. 620, as modified by Appendix A of this revenue procedure); or

(11) Requests for approval of the use of a substitute mortality table in accordance with
§ 430(h)(3)(C) (see Rev. Proc. 2017-55, 2017-43 I.R.B. 373).

Letter rulings involving other issues relating to qualified plans may be issued by the Office of
Associate Chief Counsel (Tax Exempt and Government Entities). Procedures for requesting letter
rulings under the jurisdiction of the Office of Associate Chief Counsel are contained in Rev. Proc.
2018-1, this Bulletin.

### Generally not in employee plans qualification matters

.02 The Employee Plans Rulings and Agreements 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 Employee Plans Determinations program pursuant to this
revenue procedure and Rev. Proc. 2016-37.

Request to Employee Plans
Rulings and Agreements for
extension of time for
making an election or for
other relief under
§ 301.9100-1 of the
Procedure and
Administration Regulations

.03 With respect to recharacterization of a Roth IRA, Employee Plans Rulings and Agreements
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 or a federal court. In such a case, Employee Plans Rulings and
Agreements will notify the Director, Employee Plans Examinations.

Section 301.9100-1 requests, even those submitted after the examination of the taxpayer's
return has begun, are letter ruling requests that should be submitted pursuant to this revenue
procedure, including payment of the applicable user fee referenced in section 6.02(15) of this
revenue procedure. In addition, the taxpayer must include the information required by
§ 301.9100-3(e).

However, an election made pursuant to § 301.9100-2 is not a letter ruling and does not require
payment of any user fee. See § 301.9100-2(d). Such an election pertains to an automatic
extension of time under § 301.9100-1.

Issuance of a letter ruling
before the issuance of a
regulation or other
published guidance

.04 Unless the issue is covered by section 25 of this revenue procedure, a letter ruling may be
issued before the issuance of a temporary or final regulation or other published guidance that
interprets 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; or

(2) Answer is not reasonably certain. If the letter ruling request presents an issue for which
the answer does not seem reasonably certain, Employee Plans Rulings and Agreements may issue
the letter ruling, using its best efforts to arrive at a determination, if it is in the best interest of tax
administration. Under these circumstances, coordination with the Office of Chief Counsel
generally will be required.

However, a letter ruling will not be issued if the letter ruling request presents an issue that
cannot be readily resolved before a regulation or any other published guidance is issued.

Issues in prior return

.05 Employee Plans Rulings and Agreements ordinarily does not issue letter 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 the Director, Employee Plans Examinations;

(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 the Director, Employee Plans Examinations, 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 the Director, Employee Plans Rulings and Agreements, 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, Employee Plans Rulings and Agreements will issue the 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 the Director, Employee Plans Examinations. See section
6.05 of this revenue procedure. However, even if an examination has begun, Employee Plans
Rulings and Agreements ordinarily will issue the letter ruling if the Director, Employee Plans
Examinations, agrees, by memorandum, to permit the ruling to be issued.

Generally not to business
associations or groups

.06 Employee Plans Rulings and Agreements 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. Employee Plans Rulings and Agreements, 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

.07 Employee Plans Rulings and Agreements does not issue letter rulings to foreign govern- ments or their political subdivisions about the U.S. tax effects of their laws. However, Employee Plans Rulings and Agreements 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

.08 Employee Plans Rulings and Agreements does not issue letter rulings on a matter involving the federal tax consequences of any proposed federal, state, local, municipal, or foreign legisla- tion.

SECTION 25. UNDER WHAT CIRCUMSTANCES DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS HAVE DISCRETION TO ISSUE LETTER RULINGS?

Ordinarily not in certain areas because of factual nature of the problem

.01 Employee Plans Rulings and Agreements ordinarily will not issue a letter ruling in certain areas because of the factual nature of the problem involved or because of other reasons. Employee Plans Rulings and Agreements may decline to issue a letter ruling if appropriate in the interest of sound tax administration, including due to resource constraints, or on other grounds whenever warranted by the facts or circumstances of a particular case.

No "comfort" letter rulings

.02 No letter ruling will be issued with respect to an issue that is clearly and adequately addressed by statute, regulations, decision of a court of appropriate jurisdiction, revenue ruling, revenue procedure, notice, or other authority published in the Internal Revenue Bulletin.

Not on alternative plans or hypothetical situations

.03 A letter ruling will not be issued on alternative plans of proposed transactions or on hypothetical situations.

Ordinarily not on part of an integrated transaction

.04 Employee Plans Rulings and Agreements 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. In this case, before preparing the letter ruling request, the taxpayer should call the office having jurisdiction for the matters on which the taxpayer is seeking a letter ruling to discuss whether Employee Plans Rulings and Agreements will issue a letter ruling on part of the transaction.

Not on partial terminations of employee plans

.05 Employee Plans Rulings and Agreements will not issue a letter ruling on the partial termination of an employee plan. However, determination letters involving the partial termination of an employee plan may be issued. See section 9.09 of this revenue procedure.

Law requires a letter ruling

.06 Employee Plans Rulings and Agreements will issue a letter ruling 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 the PBGC or the DOL

Domicile in a foreign
jurisdiction

.07 A letter ruling relating to an issue that is being considered by the PBGC or the DOL, that
involves the same taxpayer, shall be issued at the discretion of Employee Plans Rulings and
Agreements.

.08

(1) Employee Plans Rulings and Agreements is ordinarily unwilling to rule in situations in
which 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 Employee Plans
Rulings and Agreements 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 25.08(1) above shall not apply if the taxpayer or affected
related party (a) consents to the disclosure of all relevant information requested by Employee
Plans Rulings and Agreements 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 and
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 26. WHAT IS
THE PROCEDURE FOR
REQUESTING A
LETTER RULING FROM
EMPLOYEE PLANS
RULINGS AND
AGREEMENTS?

#### General procedures for requesting a letter ruling

.01 The procedures in section 6 of this revenue procedure are generally applicable to requests
for letter rulings.

Specific additional
procedures apply to certain
letter ruling requests

.02 The following specific revenue procedures and notices supplement the general instructions
for requests described in section 24 of this revenue procedure and apply to requests for a letter
ruling regarding the Code sections and matters listed in this section. These revenue procedures
and notices may be revised or supplemented.

(1) For requests by the plan sponsor of a multiemployer pension plan for approval of an
extension of an amortization period in accordance with § 431(d) of the Code, see Rev. Proc.
2010-52, 2010-52 I.R.B. 927.

(2) For requests by administrators or sponsors of a defined benefit plan to obtain approval for
a change in funding method, see Rev. Proc. 2017-57.

(3) For requests for the return to the employer of certain nondeductible contributions, see Rev.
Proc. 90-49, 1990-2 C.B. 620.

(4) For requests for approval of the use of a substitute mortality table in accordance with
§ 430(h)(3)(C), see Rev. Proc. 2017-55.

(5) For information about opinion and advisory letters for § 403(b) pre-approved plans (that is,
§ 403(b) prototype plans and § 403(b) VS plans), see Rev. Proc. 2013-22, as modified by Rev.
Proc. 2014-28 and Rev. Proc. 2015-22.

### PART IIIB. PROCESSING LETTER RULING REQUESTS

SECTION 27. HOW
DOES EMPLOYEE
PLANS RULINGS AND
AGREEMENTS HANDLE
LETTER RULING
REQUESTS?

In general

.01 Employee Plans Rulings and Agreements will issue letter rulings on the matters and under the circumstances described in section 24 of this revenue procedure and in the manner described in this section and section 29 of this revenue procedure.

Is not bound by informal opinion expressed

.02 Employee Plans Rulings and Agreements will not be bound by the informal opinion expressed by any 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).

Will return any letter ruling request mistakenly sent to wrong address

.03 A request for a letter ruling sent to Employee Plans Determinations will be returned to the sender so that the taxpayer can submit it to the appropriate office.

Tells taxpayer if request lacks essential information during initial contact

.04 If a request for a letter ruling does not comply with all the provisions of this revenue procedure, the request will be acknowledged and the Employee Plans Rulings and Agreements representative will tell the taxpayer during the initial contact which requirements have not been met.

Information must be submitted within 30 calendar days

.05 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 Employee Plans Rulings and Agreements representative will inform the taxpayer during the initial contact that the request will be closed if Employee Plans Rulings and Agreements does not receive the information within 30 calendar days and extension of time is not granted. See section 27.10 of this revenue procedure for information on extension of time and instructions on submissions of additional information.

Requires prompt submission of additional information requested after initial contact

.06 Material facts furnished to Employee Plans Rulings and Agreements by telephone or fax, or orally at a conference, must be promptly confirmed by letter to Employee Plans Rulings and Agreements. This confirmation and any additional information requested by Employee Plans Rulings and Agreements 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. Additional information submitted to Employee Plans Rulings and Agreements must be accom- panied by the following declaration: "Under penalties of perjury, I declare that I have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and complete." This declaration must be signed in accordance with the requirements in section 6.02(14)(b) of this revenue procedure. A

taxpayer who submits additional factual information on several occasions may provide one
declaration subsequent to all submissions that refers to all submissions.

Encourages use of fax

.07 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 Employee Plans Rulings and
Agreements representative who requests additional information can provide a telephone number to
which the information can be faxed. A copy of this information and signed penalties of perjury
statement, however, must be mailed or delivered to Employee Plans Rulings and Agreements.

Address to send additional
information

.08 Additional information should be sent to the same address as the original letter ruling
request. See section 31 of this revenue procedure. 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 Employee Plans
Rulings and Agreements representative can provide).

Number of copies of
additional information to
be submitted

.09 Generally, a taxpayer needs to submit only one copy of the additional information.
However, in appropriate cases, Employee Plans Rulings and Agreements may request additional
copies of the information.

30-day or 21-day period
may be extended if
justified and approved

.10 An extension of the 30-day period under section 27.05 of this revenue procedure or the 21-day
period under section 27.06 of this revenue procedure will be granted only if justified in writing by the
taxpayer and approved by the 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 Employee Plans Rulings and Agreements 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 of the approval or denial of the requested extension, which will be confirmed later in writing.
If the extension request is denied, there is no right of appeal.

Case closed if taxpayer
does not submit additional
information

.11 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. If Employee Plans Rulings
and Agreements determines not to issue a letter ruling because essential information is lacking,
the case will be closed and the taxpayer notified in writing. If Employee Plans Rulings and
Agreements receives the information after the letter ruling request is closed, the request may be
reopened and treated as a new request. However, the taxpayer may be required to pay another user
fee before the case can be reopened.

Near the completion of the
ruling process, advises
taxpayer of conclusions
and, if Employee Plans
Rulings and Agreements
will rule adversely, offers
the taxpayer the
opportunity to withdraw
the letter ruling request

.12 Generally, after the conference of right is held and before the letter ruling is issued, the
Employee Plans Rulings and Agreements representative will inform the taxpayer or the taxpay-
er's authorized representative of Employee Plans Rulings and Agreements' final conclusions on
the issues for which the letter ruling is sought. If Employee Plans Rulings and Agreements 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 Employee
Plans Rulings and Agreements 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 30.10 of this revenue procedure.

May request draft of
proposed letter ruling near
the completion of the
ruling process

.13 To accelerate issuance of letter rulings, in appropriate cases near the completion of the
ruling process, the Employee Plans Rulings and Agreements 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
in order to receive a letter ruling.

The format of the submission should be discussed with the Employee Plans Rulings and
Agreements 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 be included. The draft will become part of the permanent files of Employee Plans
Rulings and Agreements.

The proposed letter ruling 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 27.06 of this revenue
procedure.

# SECTION 28. HOW DOES EMPLOYEE PLANS RULINGS AND AGREEMENTS SCHEDULE CONFERENCES WITH TAXPAYERS?

Schedules a conference if requested by taxpayer

.01 A taxpayer may request a conference regarding a letter ruling request. Normally, a conference is scheduled only if Employee Plans Rulings and Agreements considers it to be helpful in deciding the case or if 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. 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 Employee Plans Rulings and Agreements' approval or denial of the request for extension are the same as those described in section 27.06 of this revenue procedure regarding providing additional information.

Permits taxpayer one conference of right

.02 A taxpayer is entitled, as a matter of right, to only one conference, except as described under section 28.05 of this revenue procedure. This conference normally will be held at the group 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 group manager.

If more than one group has taken an adverse position on an issue in a letter ruling request, or if the position ultimately adopted by one group will affect that adopted by another, a represen- tative from each group with the authority to sign in his or her own name or for the group manager 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 group 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 group to any other official of the Service. But see section 28.05 of this revenue procedure for situations in which the Service may offer additional conferences.

Disallows verbatim recording of conferences

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

Makes tentative recommendations on substantive issues

.04 The senior Employee Plans Rulings and Agreements representative present at the confer- ence ensures that the taxpayer has the opportunity to present views on all the issues in question. A Service representative explains Employee Plans Rulings and Agreements' tentative decision on the substantive issues and the reasons for that decision. If the taxpayer asks Employee Plans Rulings and Agreements to limit the retroactive effect of any letter ruling or limit the revocation or modification of a prior letter ruling, an Employee Plans Rulings and Agreements representative will discuss the recommendation concerning this issue and the reasons for the recommendation. However, the representatives will not make a commitment regarding the conclusion that Em- ployee Plans Rulings and Agreements intends to adopt.

May offer additional conferences

.05 Employee Plans Rulings and Agreements 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 if 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 Employee Plans Rulings and Agreements from offering additional conferences, including con- ferences with an official higher than the group level, if Employee Plans Rulings and Agreements determines they are needed. Such conferences are not offered as a matter of course simply because the group has reached an adverse decision. In general, conferences with higher level officials are offered only if Employee Plans Rulings and Agreements determines that the case presents significant issues of tax policy or tax administration and that the consideration of these issues would be enhanced by additional conferences with the taxpayer.

Requires written confirmation of information presented at conference

.06 The taxpayer should furnish to Employee Plans Rulings and Agreements 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 27.06 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 Employee Plans Rulings and Agreements' approval or denial of the requested extension are the same as those stated in section 27.10 of this revenue procedure regarding submitting additional information.

May schedule a pre- submission conference

.07 Sometimes it will be advantageous to both Employee Plans Rulings and Agreements and the taxpayer to hold a conference before the taxpayer submits the letter ruling request to discuss substantive or procedural issues relating to a proposed transaction. These conferences are held only: if the identity of the taxpayer is provided to Employee Plans Rulings and Agreements, if the

taxpayer actually intends to make a request, if the request involves a matter on which a letter
ruling is ordinarily issued, and at the discretion of Employee Plans Rulings and Agreements and
as time permits. For example, a pre-submission conference will not be held on an issue if, at the
time the pre-submission conference is requested, the identical issue is involved in the taxpayer's
return for an earlier period and that issue is being examined. See section 24 of this revenue
procedure. Generally, the taxpayer will be asked to provide a statement of whether the issue is an
issue on which a letter ruling is ordinarily issued and a draft of the letter ruling request or other
detailed written statement of the proposed transaction, issue(s), and legal analysis before the
pre-submission conference. If the taxpayer's representative will attend the pre-submission con-
ference, a power of attorney form is required. A Form 2848, Power of Attorney and Declaration
of Representative, must be used to provide the representative's authorization.

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). See section 3.06(2) of this revenue procedure. A letter ruling request
submitted following a pre-submission conference will not necessarily be assigned to the group
that held the pre-submission conference.

Under limited
circumstances, may
schedule a conference to be
held by telephone

.08 A taxpayer may request that a conference of right be held by telephone. This request may
occur, for example, if 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 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 group manager, the taxpayer
will be advised when to call the Employee Plans Rulings and Agreements representatives (not a
toll-free call).

## SECTION 29. WHAT EFFECT WILL A LETTER RULING HAVE?

Has same effect as a
determination letter

.01 Except as described in this section 29, a letter ruling issued by Employee Plans Rulings and
Agreements has the same effect as a determination letter ruling issued to a taxpayer under Part
II of this revenue procedure.

### Will not apply to another taxpayer

.02 A taxpayer may not rely on a letter ruling issued to another taxpayer. See § 6110(k)(3).

Will be used by the Service
in examining the
taxpayer's return

.03 When determining a taxpayer's liability, the Service 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.

May be revoked or modified if found to be in error

.04 A letter ruling found to be in error or not in accord with the current views of the Service may be revoked or modified, unless it was part of a closing agreement as described in section 3.03 of this revenue procedure. If a letter ruling is revoked or modified, the revocation or modification applies to all years open under the period of limitation unless a request to limit the retroactive effect of a revocation or modification has been granted under § 7805(b). A request to limit the retroactive revocation or modification of a letter ruling issued by Employee Plans Rulings and Agreements should be submitted to the agent or specialist assigned to the case, and should otherwise follow the procedures described in section 23.08. A letter ruling may be revoked or modified by-

(1) a letter giving notice of revocation or modification to the taxpayer to whom the letter ruling was issued;

(2) the enactment of legislation or ratification of a tax treaty;

(3) a decision of the United States Supreme Court;

(4) the issuance of temporary or final regulations; or

(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement published in the Internal Revenue Bulletin.

Consistent with these provisions, if a letter ruling relates to a continuing action or a series of actions, it will ordinarily be applied until any one of the events described above occurs or until the letter ruling is specifically withdrawn by the Service.

Publication of a notice of proposed rulemaking will not affect the application of any letter ruling issued under this revenue procedure.

If a letter ruling is revoked or modified by a letter to the taxpayer, the letter will state whether the revocation or modification is retroactive. If a letter ruling is revoked or modified by the issuance of final or temporary regulations or by the publication of a revenue ruling, revenue procedure, notice, or other statement in the Internal Revenue Bulletin, the document may contain a statement as to its retroactive effect on letter rulings.

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

.05 The revocation or modification of a letter ruling will 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 if-

(1) there was a misstatement or omission of controlling facts;

(2) the facts at the time of the transaction are materially different from the controlling facts on which the letter ruling was based; or

(3) the transaction involves a continuing action or series of actions and the controlling facts change during the course of the transaction.

Not otherwise generally revoked or modified retroactively

.06 If the revocation or modification of a letter ruling occurs, for reasons other than a change in facts as described in section 29.05 of this revenue procedure, the revocation or modification

will generally not be applied retroactively to the taxpayer for whom the letter ruling was issued
or to a taxpayer whose tax liability was directly involved in the letter ruling provided that-

(1) there was no change in the applicable law;

(2) the letter ruling was originally issued for a proposed transaction; and

(3) the taxpayer directly involved in the letter ruling acted in good faith in relying on the letter
ruling, and revoking or modifying the letter ruling retroactively would be to the taxpayer's detriment.

If a letter ruling is revoked or modified by a 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

.07 A letter ruling issued by Employee Plans Rulings and Agreements on a particular
transaction represents a holding of the Service on that transaction only. It will not apply to a
similar transaction in the same year or any other year. Except in unusual circumstances, the
application of that letter ruling to the transaction will not be affected by the later issuance of
regulations (either temporary or final) if conditions (1) through (3) in section 29.06 of this revenue
procedure are met.

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

.08 If a letter ruling is issued by Employee Plans Rulings and Agreements 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 Service ordinarily will limit the retroactive effect
of 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 if the
transaction is completed
without reliance on the
letter ruling

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

Taxpayer may request that
retroactivity be limited

.10 Under § 7805(b), the Service may prescribe the extent to which a revocation or modifi-
cation of a letter ruling will be applied without retroactive effect. See section 23.08 of this revenue
procedure for further explanation of the procedures for requesting relief under § 7805(b).

#### PART IV. USER FEES

SECTION 30. WHAT
ARE THE USER FEE
REQUIREMENTS FOR
REQUESTING ADVICE
FROM EMPLOYEE
PLANS RULINGS AND
AGREEMENTS?

##### Legislation authorizing user fees

.01 Section 7528 directs the Secretary of the Treasury or a delegate (the "Secretary") to
establish a program requiring the payment of user fees for requests to Employee Plans Rulings
and Agreements for letter rulings, opinion letters, determination letters, and similar requests. The
fees charged under the program: (1) are to vary according to categories or subcategories
established by the Secretary; (2) are to be determined after taking into account the average time
for, and difficulty of, complying with requests in each category and subcategory; and (3) are

payable in advance. Section 7528(b)(3) directs the Secretary 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 may not be less than the amount specified in § 7528.

Requests to which user fees apply

.02 In general, user fees apply to all requests for letter rulings, opinion letters, determination letters, and advisory letters submitted by or on behalf of taxpayers, sponsoring organizations or other entities as described in this revenue procedure. Requests to which a user fee is applicable must be accompanied by the appropriate fee as determined from the fee schedule set forth in Appendix A of this revenue procedure. The fee may be refunded in limited circumstances as set forth in section 30.10 of this revenue procedure.

Requests and other actions that do not require the payment of a user fee

.03 Actions that do not require the payment of a user fee include the following:

(1) Elections pertaining to automatic extensions of time under § 301.9100-1 of the Procedure and Administration Regulations;

(2) Use of forms which are not to be filed with the Service (for example, no user fee is required in connection with the use of Form 5305, Traditional Individual Retirement Trust Account, or Form 5305-A, Traditional Individual Retirement Custodial Account, in order to adopt an individual retirement account under § 408(a));

(3) In general, plan amendments whereby sponsors amend their plans by adopting, word-for- word, the model language contained in a revenue procedure which states that the amendment should not be submitted to the Service and that the Service will not issue new opinion, advisory, ruling or determination letters for plans that are amended solely to add the model language; and

(4) Change in accounting period or accounting method permitted by a published revenue procedure that permits an automatic change without prior approval of the Commissioner.

Exemptions from the user fee requirements

.04 The following exemptions, and only these exemptions apply to the user fee requirements. No user fees are charged to:

(1) Departments, agencies, or instrumentalities 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 except for § 7528.

(2) Eligible employers within the meaning of § 7528(b)(2)(C)(ii) who request a determination letter within the first five plan years or, if later, the end of any remedial amendment period with respect to the plan that begins within the first five plan years. See, Instructions to Form 8717, User Fee for Employee Plans Determination Letter Request, and Notice 2002-1, 2002-1 C.B. 283, as amplified by Notice 2003-49, 2003-2 C.B. 294, and Notice 2017-1.

User Fees under EPCRS

.05 User fees for submissions under the Voluntary Correction Program (VCP) of EPCRS are set forth in Appendix A of this revenue procedure. For further guidance on EPCRS, see Rev. Proc. 2016-51.

# Requests 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 (Tax Exempt and Government Entities) and another issue is under
the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division), the
taxpayer is only responsible for the payment of the single highest fee that could be charged by any
of the offices involved. See Rev. Proc. 2018-1, this Bulletin, for the user fees applicable to issues
under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel
(Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting),
the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel
(Procedure and Administration), the Associate Chief Counsel (International), or the Associate
Chief Counsel (Tax Exempt and Government Entities).

(2) Requests involving several fee categories. If a request dealing with only one transaction
involves more than one fee category, the taxpayer is responsible only for payment of the single
highest fee that could be charged for any of the categories involved.

(3) Requests involving several issues. A request is treated as one request if the request deals
with only one transaction but involves several issues. In such instances, 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.

(4) Requests involving several unrelated transactions. In situations in which: (a) a request
involves several transactions or (b) 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 also will apply if the
request is changed by the addition of an unrelated transaction or item not contained in the initial
submission. As a result, a separate fee will apply for each unrelated transaction or item.

(5) Requests for separate letter rulings for several entities. Each entity involved in a transaction
that desires a separate letter ruling in its own name must pay a separate fee. Payment of a separate
fee is required regardless of whether the transaction or transactions may be viewed as related.

Method of payment

.07

(1) Payment of user fees for determination letter applications. User fees for determination letter
applications (Form 5300 series only) may be paid by credit or direct debit from a checking or
savings account through www.pay.gov. Payment confirmations are provided through the
www.pay.gov portal and must be submitted along with the paper Form 8717. Additional infor-
mation can be found at Frequently Asked Questions at www.pay.gov.

(2) Payment of user fees for all other requests. Except as provided in section 30.07(1) of this
revenue procedure, each request to Employee Plans Rulings and Agreements for a letter ruling,
determination letter, opinion letter, advisory letter, or VCP compliance statement must be
accompanied by a check, payable to the United States Treasury, in the appropriate amount.
Taxpayers should not send cash.

Treasury account, rather than processing the check. By sending a completed, signed check to the
Service, the Service is authorized to copy the check and to use the account information from the
check to make an electronic fund transfer from the account for the same amount as the check. If
the electronic fund transfer cannot be processed for technical reasons, the Service is authorized
to process the copy of the check.

The electronic fund transfer from an account will usually occur within 24 hours, which is faster
than a check is normally processed. Therefore, it is necessary to ensure there are sufficient funds
available in the checking account when the check is sent to the Service. The check will not be
returned to the applicant from its financial institution.

Transmittal forms

.08

(1) Form 8717, User Fee for Employee Plan Determination Letter Request (and a payment
confirmation from www.pay.gov as described in section 30.07(1), if applicable) and Form
8717-A, User Fee for Employee Plan Opinion or Advisory Letter Request are intended to be used
as attachments to certain determination letter, opinion letter, and advisory letter applications.
Space is reserved for the attachment of the applicable user fee check. No similar form has been
designed to be used in connection with requests for letter rulings. Do not use Form 8717 for VCP
submissions. Instead, see paragraph 30.08(2) of this revenue procedure.

(2) Form 8950, Application for Voluntary Correction Program (VCP) Submission under the
Employee Plans Compliance Resolution System (EPCRS) and Form 8951, User Fee for Appli-
cation for Voluntary Correction Program (VCP), must be included with VCP submissions. A
check for the amount of the user fee must be attached to Form 8951.

Effect of nonpayment or
payment of incorrect
amount

.09 Except as provided in Part II of this revenue procedure, it will be the general practice of
Employee Plans Rulings and Agreements that:

(1) The respective offices within Employee Plans Rulings and Agreements that are responsible
for issuing letter ruling or determination letters will exercise discretion in deciding whether to
immediately return submissions that are not accompanied by a properly completed check or that
are accompanied by a check for less than the correct amount. In those instances in which the
submission is not immediately returned, the requester will be contacted and given a reasonable
period 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
Employee Plans Rulings and Agreements, in their discretion, may defer substantive consideration
of a submission until proper payment has been received.

(2) An application for a determination or opinion or advisory letter will not be returned merely
because Form 8717 or Form 8717-A was not attached.

(3) The return of a submission to the requester may adversely affect substantive rights if the
submission is not perfected and resubmitted to Employee Plans Rulings and Agreements within
30 days of the date of the cover letter returning the submission.

(4) If a check 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.

(5) If the user fee included with the VCP submission is less than the user fee required by
Appendix A or if no fee is submitted, the submission may be returned.

Refunds of user fees

.10 In general, the user fee will not be refunded unless the Service declines to rule or make
a determination on all issues for which a ruling or determination letter is requested.

(1) The following situations are examples in which the fee will not be refunded:

(a) The request for a letter ruling or determination letter 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 unwilling to pay the higher fee. For example, no fee will be refunded in cases in which the
taxpayer has been advised that a proposed adverse ruling is contemplated and subsequently
withdraws its submission.

(b) The request is procedurally deficient, although accompanied by the proper fee or an
overpayment, and it is not timely perfected upon request. If 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) In the case of a request for a letter ruling, if the case has been closed by Employee Plans
Rulings and Agreements because essential information has not been submitted timely, the request
may be reopened and treated as a new request. However the requester must pay another user fee
before the case can be reopened. See section 27.11 of this revenue procedure. In the case of a
request for a determination letter, if the case has been closed by EP Determinations because the
requested information has not been timely submitted, the case will be closed and the user fee will
not be refunded. See section 10.12 of this revenue procedure.

(d) A letter ruling, determination letter, etc., is revoked in whole or in part at the initiative of
the Service. The fee paid at the time the original letter ruling, determination letter, etc., was
requested will not be refunded.

(e) The request contains several issues and the Service rules on some, but not all, of the issues.
The highest fee applicable to the issues on which the Service rules will not be refunded.

(f) The requester asserts that a letter ruling the requester 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.

(g) The situation is the same as described in subparagraph (f) of this section 30.10(1) except
that the letter ruling covered several unrelated transactions. The Service, upon reconsideration,
does not agree with the requester 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 or more of the transactions. The fee
accompanying the request for reconsideration will not be refunded except to the extent applicable
to any transaction for which the Service agrees the letter ruling was in error.

(h) The request is for a supplemental letter ruling, determination letter, etc., concerning a
change in facts (whether significant or not) relating to the transaction on which the Service ruled.

(i) The request is for reconsideration of an adverse or partially adverse letter ruling or a final
adverse determination letter, and the taxpayer submits arguments and authorities not submitted
before the original letter ruling or determination letter was issued.

(2) The following situations are examples in which the user fee will be refunded:

(a) In a situation to which section 30.10(1)(i) of this revenue procedure does not apply, the
taxpayer asserts that a letter ruling the taxpayer received covering a single issue is erroneous or
is not responsive (other than an issue on which the Service declined to rule) and requests
reconsideration. Upon reconsideration, the Service agrees that the letter ruling is erroneous or is
not responsive. The fee accompanying the taxpayer's request for reconsideration will be refunded.

(b) In a situation to which section 30.10(1)(i) of this revenue procedure does not apply, the
requester requests a supplemental letter ruling, determination letter, etc., to correct a mistake that
Employee Plans Rulings and Agreements agrees it made in the original letter ruling, determina-
tion letter, etc., such as a mistake in the statement of facts or in the citation of a Code section.
Once Employee Plans Rulings and Agreements agrees that it made a mistake, the fee accompa-
nying 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. The fee accompanying the
request for relief will be refunded.

(d) In a situation to which section 30.10(1)(b) of this revenue procedure would otherwise apply,
except that Employee Plans Rulings and Agreements does not request perfection of the procedural
deficiencies in the application but rather does not accept the application and returns it to the
requester, the fee accompanying the request will be returned or refunded.

(e) In a situation to which section 30.10(1)(e) of this revenue procedure applies, the requester
requests reconsideration of the Service's decision not to rule on an issue. Once Employee Plans
Rulings and Agreements agrees to rule on the issue, the fee accompanying the request for
reconsideration will be refunded.

(3) VCP Submissions. For refunds relating to VCP submissions, see Rev. Proc. 2016-51,
section 10.06.

Request for
reconsideration
of user fee

.11 A taxpayer that believes the user fee charged by Employee Plans Rulings and Agreements
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 30.10 of this revenue
procedure) may request reconsideration of the user fee 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 provided in section 31 of 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 the appropriate unit as listed in the table below.

If the matter involves primarily:

Mark for the attention of:

Employee plans letter ruling requests and all other employee plans matters handled by Employee Plans Rulings and Agreements

Employee Plans Rulings and Agreements

Employee plans determination letter requests and opinion letter and advisory letter requests pursuant to Rev. Proc. 2015-36

Manager, EP Quality Assurance

Employee plans opinion letter requests pursuant to Rev. Proc. 2017-41

Manager, EP Quality Assurance

Notwithstanding the above, user fees associated with submissions made to the VCP program
are fixed, apply to all plan sponsors, and generally will not be refunded. However, if a taxpayer
believes they submitted an incorrect fee relating to a VCP submission, the taxpayer should contact
the Service employee who is working the case to determine whether a partial refund or additional
payment is applicable. If the taxpayer is not in contact with a specific Service employee with
regard to the taxpayer's submission, the taxpayer may call the VCP Case Status telephone number
at (626) 927-2011. If there is a disagreement as to the fee that applies to a specific VCP case, the
matter may be discussed with the Service employee's manager.

# SECTION 31. WHAT ARE THE MAILING ADDRESSES FOR REQUESTING LETTER RULINGS, OPINION LETTERS, ADVISORY LETTERS, DETERMINATION LETTERS, AND VCP COMPLIANCE STATEMENTS FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS?

Letter rulings and opinion
letters

.01 Requests should be mailed to the appropriate address provided in this section 31.01.

(1) Employee plans letter rulings under Rev. Procs. 87-50, 90-49, 2003-16, 2010-52,
2017-55, 2017-57, or this revenue procedure:

Internal Revenue Service
Attention: EP Letter Rulings
Stop 31
P.O. Box 12192
Covington, KY 41012-0192

(2) Employee plans opinion letters under Rev. Procs. 87-50, 97-29, 98-59, or 2010-48:

Internal Revenue Service
Attention: EP Opinion Letters
Stop 31
P.O. Box 12192
Covington, KY 41012-0192

Note: Hand-delivered requests must be marked RULING REQUEST SUBMISSION. The
delivery should be made to the following address between the hours of 8:30 a.m. and 4:00 p.m.,
where a receipt will be given:

Courier's Desk
Internal Revenue Service
Attention: EP Letter Rulings
Stop 31
201 West Rivercenter Boulevard
Covington, KY 41011

(1) Requests for determination letters on the qualified status of employee plans under § 401,
403(a), 409, or 4975(e)(7) and the exempt status of any related trust under § 501 are handled by
the EP Determinations Office and should be sent to the Internal Revenue Service Center in
Covington, Kentucky, at the address shown below. The address is:

Internal Revenue Service
Attention: EP Determination Letters
Stop 31
P.O. Box 12192
Covington, KY 41012-0192

(2) The following types of requests and applications are handled by EP Determinations and
should be sent to the Internal Revenue Service at the address shown below:

(a) requests for M&P opinion letters and for VS advisory letters on the form of pre-approved
employee plans under § 401 or 403(a) and the exempt status of any related trust under § 501, with
respect to submissions made under cycles prior to the third six-year remedial amendment cycle,
pursuant to Rev. Proc. 2015-36;

(b) requests for opinion letters on the form of pre-approved employee plans under § 401 or
403(a) for the third (and subsequent) six-year remedial amendment cycles, pursuant to Rev. Proc.
2017-41; and

(c) requests for § 403(b) prototype opinion letters and for § 403(b) VS advisory letters for
§ 403(b) pre-approved plans under Rev. Proc. 2013-22:

Internal Revenue Service
Attn. Pre-Approved Plans Coordinator
P.O. Box 2508
Rm. 5106: Group 7521
Cincinnati, OH 45201

(3) Applications shipped by Express Mail or a delivery service for all of the above except for
pre-approved employee plans should be sent to:

Internal Revenue Service
Attention: EP Determination Letters
Stop 31
201 West Rivercenter Boulevard
Covington, KY 41011

Applications shipped by Express Mail or a delivery service for pre-approved employee plans
should be sent to:

Internal Revenue Service

Attn: Pre-Approved Plans Coordinator
550 Main Street
Room 5106: Group 7521
Cincinnati, OH 45202

## VCP compliance statements

.03

(1) VCP submissions are handled by the EP Voluntary Compliance function and should be sent
to the Internal Revenue Service in Covington, Kentucky, at the address shown below. Submission
procedures for VCP are set forth in section 11 of Rev. Proc. 2016-51. Refer to instructions
associated with Form 8950. Forms 8950 and 8951 must accompany the VCP submission.

Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192

(2) VCP submissions shipped by Express Mail or a delivery service should be sent to:

Internal Revenue Service
201 West Rivercenter Boulevard
Attn: Extracting Stop 312
Covington, KY 41011

SECTION 32. WHAT IS
THE EFFECT OF THIS
REVENUE PROCEDURE
ON OTHER
DOCUMENTS?

Rev. Proc. 2017-4 is superseded. Section 3.04 of Rev. Proc. 2004-15 is modified.

## SECTION 33. EFFECTIVE DATE

This revenue procedure is effective January 2, 2018.

## SECTION 34. PAPERWORK REDUCTION ACT

The collections of information contained in this revenue procedure have been reviewed and
approved by the Office of Management and Budget in accordance with the Paperwork Reduction
Act (44 U.S.C. § 3507) under control number 1545-1520.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection
of information unless the collection of information displays a valid OMB control number.

The collections of information in this revenue procedure are in sections 6.02, 6.03, 6.05, 6.06,
10.03, 10.04, 10.12, 10.15, 10.16, 10.18, 11.04, 16, 17, 18, 21.02, 22.03, 23.02, 23.08, 27.05,
27.06, 27.07, 27.08, 27.09, 27.10, 27.13, 28.01, 28.06, 28.07, and 29.10, and in Appendices C, E,
and F. This information is required to evaluate and process the request for a letter ruling or
determination letter, and with respect to determination letters, information collected will be used
to determine whether a plan is entitled to favorable tax treatment as a qualified plan. In addition,
this information will be used to help the Service delete certain information from the text of the

letter ruling or determination letter before it is made available for public inspection, as required
by §§ 6110 and 6104. The collections of information are required to obtain a letter ruling or
determination letter. The likely respondents are individuals, businesses or other for-profit insti-
tutions, tax exempt organizations, and government entities.

The estimated total annual reporting and/or recordkeeping burden with respect to letter ruling
requests is 769 hours. The estimated total annual reporting and/or recordkeeping burden with
respect to determination letters is 17,382 hours.

The estimated annual burden per respondent/recordkeeper varies from 15 minutes to 40 hours,
depending on individual circumstances and the type of request involved, with an estimated
average burden of 6.01 hours for letter ruling requests and 2.02 hours for determination letter
requests. The estimated number of respondents and/or recordkeepers is 128 for letter rulings and
8,605 for determination letters.

For letter rulings, the estimated annual frequency of responses is one request per applicant,
except that a taxpayer requesting a letter ruling may also request a presubmission conference.

For determination letters, the estimated annual frequency of responses (used for reporting
requirements only) is once every three years.

Books or records relating to a collection of information must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally, tax
returns and tax return information are confidential, as required by § 6103.

## DRAFTING INFORMATION

The principal author of this revenue procedure is Kathleen Herrmann of the Office of Chief
Counsel (Tax Exempt and Government Entities). For further information regarding submission
and processing of requests under this revenue procedure, contact Don Kieffer of Employee Plans
Rulings and Agreements, at 908-301-2655 (not a toll-free number).

### APPENDIX A SCHEDULE OF USER FEES

The amount of the user fee payable with respect to each category or subcategory of submission is as set forth in the following
schedule.

CATEGORY

USER FEE

.01 Letter ruling requests

(1) Computation of exclusion for annuitant under § 72

$1,000

(2) Change in plan year (Form 5308)

$1,000

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. In such a case, Form 5308 should not be submitted to the Service.

(3) Five-Year Automatic Extension of the Amortization Period

$1,000

(4) All other letter rulings under jurisdiction of the Employee Plans Office (see section 24.01)

$10,000

.02 Opinion letters on prototype individual retirement accounts and/or annuities, SEPs, SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs

$2,500

Note: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applica- tions on behalf of word-for-word adopters of prototype IRAs or prototype dual-purpose IRAs with re- spect to a particular plan document, 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. .03 Opinion letters on master and prototype plans submitted pursuant to Rev. Proc. 2015-36 (1) Mass submitter M&amp;P plan

(a) per basic plan document, new or amended, with one adoption agreement

$16,000

(b) per each additional adoption agreement

$11,000

(2) Sponsor's word-for-word identical adoption of M&amp;P mass submitter's basic plan document (or an amendment thereof), per adoption agreement

$300

(3) Sponsor's minor modification of M&amp;P mass submitter's basic plan document, per adoption agreement

$700

(4) Non-mass submitter M&amp;P plan

(a) per basic plan document, new or amended, with one adoption agreement

$16,000

(b) per each additional adoption agreement

$11,000

(5) M&amp;P mass submitter's request for an opinion letter with respect to the addition of optional provisions following issuance of a favorable opinion letter, per basic plan document (regardless of the number of adoption agreements) (see section 12.03(1)(c) of Rev. Proc. 2015-36)

$1000

(6) Assumption of sponsorship of an approved M&amp;P plan, without any amendment to the plan document, by a new entity, as evidenced by a change of employer identification number, per basic plan docu- ment

$300

(7) Change in name and/or address of sponsor of an approved M&amp;P plan, per basic plan document

None

(8) Mass submitter or non-mass submitter sponsor per trust document in excess of 10

$600

Note: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applica- tions 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.

.04 Advisory letters on VS plans submitted pursuant to Rev. Proc. 2015-36

(1) VS specimen plan (mass and non-mass submitter) including one adoption agreement

$28,000

(2) Each additional adoption agreement

$28,000

(3) VS specimen plan that is word-for-word identical to a mass submitter specimen plan

$300

(4) Assumption of sponsorship of an approved VS plan, without any amendment to the plan document, by a new entity, as evidenced by a change of employer identification number, per basic plan docu- ment

$300

CATEGORY

USER FEE

(5) Change in name and/or address of practitioner of an approved VS specimen plan, per basic plan doc- ument

None

(6) Mass submitter or non-mass submitter practitioner per trust document in excess of 10 .05 Opinion letters on pre-approved plans submitted pursuant to Rev. Proc. 2017-41

$600

(1) Mass submitter and non-mass submitter plans with adoption agreements

(a) per basic plan document, new or amended, with one adoption agreement

$16,000

(b) per each additional adoption agreement

$11,000

(2) Mass submitter and non-mass submitter single document plans (no adoption agreements) (a) per each single document plan

$28,000

(3) Provider's word-for-word adoption of mass submitter's basic plan document per adoption agreement or single document plan

$300

(4) Provider's minor modification of mass submitter's basic plan document per adoption agreement or single document plan

$700

.06 Determination letters

(1) Determination Letters:

(a) Form 5300 (Application for Determination for Employee Benefit Plan)

$2,500

(b) Form 5307 (Application for Determination for Adopters of Modified Volume Submitter Plans)

$800

$3,000

(d) Multiple employer plans (Form 5300)

$4,000

(e) Multiple employer plans (Form 5310), regardless of number of participants

$4,000

(2) Group trusts contemplated by Rev. Rul. 81-100, 1981-1 C.B. 326, Rev. Rul. 2004-67, 2004-2 C.B. 28, Rev. Rul. 2011-1, 2011-2 I.R.B. 251, Rev. Rul. 2014-24, 2014-37 I.R.B. 529. Form 5316 is available for group trust submissions. .07 Opinion letters on § 403(b) prototype plans (1) Mass submitter § 403(b) prototype plan

$1,000

(a) per basic plan document with one adoption agreement

$16,000

(b) per each additional adoption agreement

$11,000

(2) Section 403(b) prototype plan of a word-for-word identical adopter of a § 403(b) prototype mass sub- mitter's basic plan document (or an amendment thereof), per adoption agreement

$300

(3) Section 403(b) prototype plan of a minor modifier of a § 403(b) prototype mass submitter's basic plan document, per adoption agreement

$700

(4) Non-mass submitter § 403(b) prototype plan

(a) per basic plan document with one adoption agreement

$16,000

(b) per each additional adoption agreement

$11,000

(5) Assumption of sponsorship of an approved § 403(b) prototype plan, without any amendment to the plan document, by a new entity, as evidenced by a change of employer identification number, per basic plan document

$300

(6) Change in name and/or address of sponsor of an approved § 403(b) prototype plan, per basic plan document

None

Note: If a mass submitter submits, during the period set forth in Rev. Proc. 2013-22, more than 300 ap- plications 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. .08 Advisory letters on § 403(b) VS plans

(1) Section 403(b) VS specimen plan (mass and non-mass submitter) including one adoption agreement

$28,000

(2) Each additional adoption agreement

$28,000

(3) Section 403(b) VS specimen plan of a word-for-word identical adopter of a mass submitter specimen plan

$300

(4) Section 403(b) VS specimen plan of a minor modifier of a § 403(b) VS mass submitter specimen plan (or per adoption agreement if applicable)

$700

USER FEE
$300

## CATEGORY

(5) Assumption of sponsorship of an approved § 403(b) VS plan, without any amendment to the plan
document, by a new entity, as evidenced by a change of employer identification number, per speci-
men plan

(6) Change in name and/or address of practitioner of an approved § 403(b) VS specimen plan, per speci-
men plan

None

.09 User Fees for VCP submissions under EPCRS Revenue Procedure 2016-51

(1) Regular submissions under VCP, including Anonymous Submissions. (For a special rule relating to
terminating Orphan Plans see section 4.08 of Rev. Proc. 2016-51):

Plans with assets of -

(a) $500,000 or less

$1,500

(b) Over $500,000 to $10,000,000

$3,000

$3,500

Note: In general. User fees under this section are determined based on end of year net assets of a plan
as reported on the most recently filed Form 5500 series return. Plans not required to file Form 5500
Series. If the plan sponsor is not required to file a Form 5500 series return with regard to a plan eligible
for VCP, the amount of net assets for user fee purposes generally will be the amount of net assets as of
the last day of the most recently completed plan year preceding the date of the VCP submission. How-
ever, if this information has not been compiled by the time the plan sponsor is ready to make a VCP
submission to the IRS, the plan sponsor may use the amount of net assets associated with the most re-
cently completed prior plan year for which information on the amount of net assets is available. This
exception will not apply if the VCP submission is mailed to the IRS more than seven months after the
close of the most recently completed plan year preceding the date of the VCP submission.

(2) VCP fee for Group Submissions, initial fee for first 20 plans
$10,000

Note: The fee for a group submission is based on the number of plans affected by the failure as de-
scribed in the compliance statement. The initial fee is due at the time of submission. An additional fee is
due equal to the product of the number of plans in excess of 20 multiplied by $250. The maximum fee
for a group submission is $50,000. If additional plans are added following the group submission, the ad-
ditional fee is paid subject to the $50,000 maximum fee. With respect to pre-approved plans, the fee is
determined based on the number of basic plan documents submitted and the number of employers who
have adopted each basic plan document by using an adoption agreement associated with that basic plan
document. See Form 8951 and Rev. Proc. 2016-51, sections 10.10 and 11.06.

### APPENDIX B SAMPLE NOTICE TO INTERESTED PARTIES

The sample notice set forth below may be used to satisfy the requirements of section 20 of this revenue procedure.

## 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 on
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, termination, or partial termination]. The application will be filed with:

Internal Revenue Service
Attention: EP Determination Letters
Stop 31
P.O. Box 12192
Covington, KY 41012-0192

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 EP Determinations, either individually or jointly with other interested parties, your
comments as to whether this plan meets the qualification requirements of the Internal Revenue Code. Label your comments
"Interested Party Statement." Your comments to EP Determinations should be submitted to:

Internal Revenue Service
EP Determinations
Attn: Customer Service Manager
P.O. Box 2508
Cincinnati, OH 45202

You may instead, individually or jointly with other interested parties, request the DOL to submit, on your behalf, comments
to EP Determinations regarding qualification of the plan. If the DOL declines to comment on all or some of the matters you raise,
you may, individually, or jointly if your request was made to the DOL jointly, submit your comments on these matters directly
to EP Determinations at the Cincinnati address above.

## REQUESTS FOR COMMENTS BY THE DOL

11\. The DOL may not comment on behalf of interested parties unless requested to do so by the lesser of 10 employees or 10
percent of the employees who qualify as interested parties. The number of persons needed for the DOL to comment with respect
to this plan is
If you request the DOL 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 DOL to comment.

A request to the DOL to comment should be addressed as follows:

Deputy Assistant Secretary
Employee Benefits Security Administration
U.S. Department of Labor,
200 Constitution Avenue, N.W.
Washington, D.C. 20210
Attention: 3001 Comment Request

## COMMENTS TO THE INTERNAL REVENUE SERVICE

12\. Comments submitted by you to EP Determinations must be in writing and received by it by
However,
if there are matters that you request the DOL to comment upon on your behalf, and the DOL declines, you may submit comments
on these matters to EP Determinations to be received by it within 15 days from the time the DOL notifies you that it will not
comment on a particular matter, or by
, whichever is later, but not after
A request to the DOL to
comment on your behalf must be received by it by
if you wish to preserve your right to comment on a matter
upon which the DOL 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 19 and 20
of Rev. Proc. 2018-4. 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 19 of Rev. Proc. 2018-4 are available at
during the hours
of
for inspection and copying. (There is a nominal charge for copying and/or mailing.)

## APPENDIX C

## CHECKLIST FOR SECTION 401(h) AND SECTION 420 DETERMINATION LETTERS

As part of a § 401(h) or § 420 determination letter request described in section 18 of this revenue procedure the following
checklist must be completed and attached to the determination letter request. If the request relates to § 401(h) but not to § 420,
complete Part I only. If the request relates to § 420, complete Parts I and II. Answer each question by circling "Yes" or "No."
If a question contains a place for a section number, insert the section number that gives the information called for by a yes answer
to a question.

PART I

CIRCLE

SECTION

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.

Yes No

a. Does the medical benefits account specify the medical benefits that will be available and contain provisions for determining the amount that will be paid?

Yes No

b. Does the medical benefits account specify who will benefit?

Yes No

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 ben- efits? (This requirement will not be satisfied unless the amount of actual con- tributions to provide § 401(h) benefits (when added to actual contributions for life insurance protection under the Plan) does not exceed 25 percent of the total actual contributions to the Plan (other than contributions to fund past ser- vice credits), determined on an aggregate basis since the inception of the § 401(h) arrangement.)

Yes No

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?

Yes No

e. Does the medical benefits account state that amounts contributed must be rea- sonable and ascertainable?

Yes No

f. Does the medical benefits account provide for the impossibility of diversion prior to satisfaction of liabilities (other than item "7" below)?

Yes No

g. Does the medical benefits account provide for reversion upon satisfaction of all liabilities (other than item "7" below)?

Yes No

h. Does the medical benefits account provide that forfeitures must be applied as soon as possible to reduce employer contributions to fund the medical bene- fits?

Yes No

PART II

2. Does the Plan limit transfers to "Excess Assets" as defined in § 420(e)(2) of the Code?

Yes No

3. Does the Plan provide that only one transfer may be made in a taxable year?

Yes No

4. Does the Plan provide that the amount transferred shall not exceed the amount reasonably estimated to be paid for qualified current retiree liabilities?

Yes No

5. Does the Plan provide that no transfer will be made after December 31, 2025?

Yes No

6. Does the Plan provide that transferred assets and income attributable to such assets shall be used only to pay qualified current retiree liabilities for the taxable year of transfer?

Yes No

7. Does the Plan provide that any amounts transferred (plus income) that are not used to pay qualified current retiree liabilities shall be transferred back to the defined benefit portion of the Plan?

Yes No

8\. Does the Plan provide that amounts paid out of a health benefits account or an
applicable life insurance account will be treated as paid first out of transferred
assets and income attributable to those assets?

Yes No

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?

Yes No

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 nonforfeit-
able for participants who separated from service in such prior year as described
in § 420(c)(2)?

Yes No

11\. Does the Plan provide that transfers will be permitted only if each group health
plan or arrangement or group-term life insurance plan, as applicable contains
provisions satisfying § 420(c)(3) of the Code, as amended?

Yes No

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, as amended?

Yes No

13\. Does the Plan provide that transferred assets cannot be used for key employ-
ees?

Yes No

# APPENDIX D

## SAMPLE FORMAT FOR A LETTER RULING REQUEST FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS

(Insert the date of request)

[for Employee Plans]
Internal Revenue Service
Attention: EP Letter Rulings
Stop 31
P.O. Box 12192
Covington, KY 41012-0192

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 expedited handling, the letter ruling request must contain a statement to that effect. This statement
must explain the need for expedited handling. See section 6.03(3).]

# A. STATEMENT OF FACTS

## 1. Taxpayer Information

[Provide the statements required by sections 6.02(1)(a), (b), and (c) of Rev. Proc. 2018-4, 2018-1 I.R.B 146. Hereafter, all
references are to Rev. Proc. 2018-4, 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 6.02(1)(a), (b), and (c):

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.

2\. Detailed Description of the Transaction.

## 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 6.02(6), 6.02(7), and 6.02(8).]

## D. ANALYSIS

[The ruling request must contain a discussion of the facts and an analysis of the law. See sections 6.02(3), 6.02(6), 6.02(7), and 6.02(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. 2018-4 statements

a. [The statement required by section 6.02(4).]

b. [The statement required by section 6.02(5).]

c. [The statement required by section 6.02(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 6.02(7) if 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 6.03(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.
See section 6.03(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 6.03(1).]

2\. Administrative

a. A Power of Attorney is enclosed. [See sections 6.02(12) and 6.03(2).]

b. The deletions statement and checklist required by Rev. Proc. 2018-4 are enclosed. [See sections 6.02(9) and 6.02(16).]

c. The required user fee is enclosed. [See section 6.02(15).]

Very truly yours,

(Insert the name of the taxpayer or the taxpayer's
authorized representative)

By:

Signature

Date

Typed or printed name of person signing request

DECLARATION: [See section 6.02(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 request contains all the relevant facts relating to the request and such facts are true, correct, and complete.

(Insert the name of the taxpayer)

By:

Signature

Title

Date

Typed or printed name of person signing declaration

# APPENDIX E CHECKLIST FOR LETTER RULINGS FROM EMPLOYEE PLANS RULINGS AND AGREEMENTS 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 four items of information requested before the checklist. Answer
each question by circling "Yes," "No," or "N/A." If 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.

ATTORNEY/P.O.A.

PRIMARY CODE SECTION

CIRCLE ONE

ITEM

Yes No N/A

1. Does your request involve an issue under the jurisdiction of Employee Plans Rulings and Agreements? See section 24.01 of Rev. Proc. 2018-4, 2018-1 I.R.B. 146 for the list of issues on which Employee Plans Rulings and Agreements issues letter rulings. See section 5 of Rev. Proc. 2018-4, for issues under the jurisdiction of other offices. (Hereafter, all references are to Rev. Proc. 2018-4, unless otherwise noted.)

Yes No N/A Page

2. If the request deals with a completed transaction, have you filed the return for the year in which the transaction was completed? See sections 24.01.

Yes No

3. Are you requesting a letter ruling on a hypothetical situation or question? See section 25.03.

Yes No

4. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 25.03.

Yes No

5. Are you requesting the letter ruling for only part of an integrated transaction? See section 25.04.

Yes No

6. Have you submitted another letter ruling request for the transaction covered by this request?

Yes No

7. Are you requesting the letter ruling for a business, trade, industrial association, or similar group con- cerning the application of tax law to its members? See section 24.06.

Yes No Page

8. Have you included a complete statement of all the facts relevant to the transaction? See section 6.02(1).

Yes No N/A

9. Have you submitted with the request true copies of all wills, deeds, plan documents, and other docu- ments relevant to the transaction, and labeled and attached them in alphabetical sequence? See section 6.02(2).

Yes No Page

10. Have you included, rather than merely incorporated by reference, all material facts from the docu- ments in the request? Are they accompanied by an analysis of their bearing on the issues that specifies the document provisions that apply? See section 6.02(3).

Yes No Page

11. Have you included the required statement regarding whether the same issue in the letter ruling re- quest is in an earlier return of the taxpayer or in a return for any year of a related taxpayer? See section 6.02(4).

Yes No Page

12. 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 6.02(5).

CIRCLE
ONE
Yes No
Page
Yes No
Page
Yes No
Page
Yes No N/A
Page

## ITEM

13\. Have you included the required statement regarding whether the taxpayer, a related taxpayer, a pre-
decessor, or any representatives previously submitted the same or similar issue but withdrew it before the
letter ruling was issued? See section 6.02(5).

14\. 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 6.02(6).

15\. Have you included the required statement of relevant authorities in support of your views? See sec-
tion 6.02(6).

16\. Does your request discuss the implications of any legislation, tax treaties, court decisions, regula-
tions, notices, revenue rulings, or revenue procedures you determined to be contrary to the position ad-
vanced? See section 6.02(7), which states that taxpayers must inform the Service of such authorities.

Yes No N/A
Page
Yes No N/A
Page
Yes No
Yes No N/A
Page
Yes No N/A

17\. If you determined that there are no contrary authorities, have you included a statement to this effect
in your request? See section 6.02(7).

18\. Have you included in your request a statement identifying any pending legislation that may affect the
proposed transaction? See section 6.02(8).

19\. Is the request accompanied by the deletions statement required by § 6110? See section 6.02(9).

20\. Have you (or your authorized representative) signed and dated the request? See section 6.02(10).

21\. If the request is signed by your representative, or if your representative will appear before the Ser-
vice in connection with the request, is the request accompanied by a properly prepared and signed power
of attorney (Form 2848) with the signatory's name typed or printed? See section 6.02(12).

22\. Have you included, signed and dated, the penalties of perjury statement in the form required by sec-
tion 6.02(14)?

Yes No N/A
Page ____
Yes No N/A

23\. Have you included the correct user fee with the request and made your check or money order pay-
able to the United States Treasury? See section 6.02(15) and section 30 and Appendix A, for the correct
amount and additional information on user fees.

Yes No N/A
Yes No N/A

24\. Are you submitting your request in duplicate if necessary? See section 6.02(16).

25\. 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 6.03(1).

Page __
Yes No N/A
Page ___
Yes No N/A

26\. If you have more than one representative, have you designated whether the representatives listed on
the power of attorney (Form 2848) are to receive a copy of the letter ruling? See section 6.03(2).

27\. If you want your letter ruling request to be processed ahead of the regular order or by a specific date,
have you requested expedited handling in the form required by section 6.03(3) and stated a compelling
need for such action in the request?

Yes No N/A
Page_
Yes No N/A

28\. If you want to have a conference on the issues involved in the request, have you included a request
for a conference in the ruling request? See section 6.03(5).

29\. If your request is covered by any of the revenue procedures listed in section 26, have you complied
with all of the requirements of the applicable revenue procedures?

Yes No N/A
Page_
Yes No N/A

30\. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all
of the requirements in section 29.10?

31\. Have you addressed your request to the appropriate office provided in section 31? Improperly ad-
dressed requests may be delayed (sometimes for over a week) in reaching the appropriate office for ini-
tial processing.

Signature

Title or authority

Date

Typed or printed name of person signing checklist

# APPENDIX F ADDITIONAL CHECKLIST FOR ROTH IRA RECHARACTERIZATION RULING REQUESTS

In order to assist Employee Plans in processing a ruling request involving a Roth IRA recharacterization, in addition to the
items in Appendix E, please check the following list. Answer each question by circling "Yes," "No," or "N/A." If 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.

Yes No N/A Page __

1. Did you include the name(s) of the trustee and/or custodian of the traditional individual retirement account (IRA) (generally, a financial institution)?

Yes No N/A Page

2. Is each IRA identification number included?

Yes No N/A Page_

3. If the ruling request involves Roth conversions of a married couple, is the necessary information with respect to each IRA of each party included? Note: as long as the parties file a joint federal Form 1040, the Service can issue one ruling covering both parties. Furthermore, if a joint federal income tax return has been filed for the year or years in question, the Service only requires one user fee even if each spouse had failed conversions.

Yes No N/A Page

4. If there was one or more attempted conversions, are the applicable dates on which the attempted IRA conversion(s) occurred included?

Yes No N/A Page

5. If the reason that a conversion failed is that the taxpayer or related taxpayers relied upon advice of a tax professional such as a CPA, or an attorney, is the name and occupation of that adviser included?

Yes No N/A Page

6. Is certification that the taxpayer or taxpayers timely filed the relevant federal tax return(s) included?

Yes No N/A Page

7. Is there a short statement of facts with respect to the conversion? For example, if the ruling request involves a conversion attempted in 1998, there should be a statement of the facts that includes a repre- sentation of why the due date(s) found in Announcement 99-57 and Announcement 99-104 were not met.

Yes No N/A Page

8. If the taxpayer recharacterized his/her Roth IRA to a traditional IRA prior to submitting a request for § 9100 relief, are the date(s) of the recharacterization(s), name(s) of trustees and/or custodians, and the identification numbers of the traditional IRA(s) included?

Yes No N/A Page_

9. Does the request include the type of contribution (i.e., regular or conversion) and amount of the con- tribution being recharacterized?

# 26 CFR 601.201: Rulings and determination letters.

## Rev. Proc. 2018-5

TABLE OF CONTENTS

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

235

Description of terms used in this revenue procedure

235

Updated Annually

236

SECTION 2. NATURE OF CHANGES TO REV. PROC. 2017-5 AND RELATED REVENUE PROCEDURES AND FORMS

236

What changes have been made to Rev. Proc. 2017-5?

236

Related revenue procedures

237

Related forms that are not a request for a determination letter

238

SECTION 3. UNDER WHAT CIRCUMSTANCES DOES EO DETERMINATIONS ISSUE DETERMINATION LETTERS?

238

Matters on which EO Determinations will issue a determination letter.

238

Circumstances under which determination letters are not issued

239

Technical advice may be requested in certain cases

240

Review of determination letters

240

Determination letter based solely on administrative record

241

SECTION 4. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING DETERMINATION LETTERS?

241

In general

241

Format of request

241

Form 1023 application

241

Form 1023-EZ application

241

Form 1024 application

242

Form 1028 application

242

Form 8940 request for miscellaneous determination

242

Letter request

242

Language requirements

243

Signature on request

243

Power of attorney and declaration of representative

243

Penalty of perjury statement

243

Applicable user fee

244

Where will copies of the determination letter be sent?

244

Expedited processing

244

Non-acceptance for processing

245

How to check on status of request

246

SECTION 5. WHAT ARE THE SPECIFIC PROCEDURES FOR REQUESTING A DETERMINATION LETTER BY

LETTER?

246

In general

246

Certain information required

246

Statement of facts

246

Documents

246

Analysis of material facts

246

Same or similar issue previously submitted or currently pending

246

Statement of authorities

247

SECTION 6. WHAT ARE THE SPECIFIC PROCEDURES FOR APPLICATIONS FOR RECOGNITION OF

EXEMPT STATUS UNDER § 501 OR § 521?

248

In general

248

Terrorist organizations not eligible to apply for recognition of exemption

248

Format of application

248

Form 8718

248

Form 1023-EZ applications

248

Form 1023 and Form 1023-EZ applications for reinstatement after automatic revocation

250

What are the requirements for a completed application?

250

Requirements for a completed application other than a Form 1023-EZ application

250

Requirements for a completed Form 1023-EZ application

251

What are the standards for issuing a determination letter on exempt status?

252

Exempt status must be established in application, including attestation and supporting documents.

252

Exempt status may be recognized in advance of actual operations

252

Even if application is complete, additional information may be required

252

Effective date of exemption

253

SECTION 7. WHAT ARE THE SPECIFIC PROCEDURES FOR DETERMINATION LETTER REQUESTS ON FORM 8940?

253

In general

253

Requests made on Form 8940

253

Initial classification of private foundation status

254

Under what circumstances must an organization request a determination of foundation status, and

when is such a request optional?

254

Not applicable to private foundation terminations under § 507 or changes of status pursuant to examination

254

SECTION 8. WITHDRAWAL OF A REQUEST FOR DETERMINATION LETTER

255

Request may be withdrawn prior to issuance of a determination letter

255

§ 7428 implications of withdrawal of application under § 501(c) or (d).

255

SECTION 9. PROCEDURES FOR ADVERSE DETERMINATION LETTERS

255

In general

255

Types of requests that may receive Appeals Office consideration

255

Contents of proposed adverse determination letter for requests with appeals rights

256

Protest/appeal of a proposed adverse determination letter on certain issues

256

Final adverse determination letter where no protest/appeal is submitted

256

Review of protest by EO Determinations

256

Consideration by the Appeals Office

256

Effect of new information raised in protest/appeal

256

An appeal or protest may be withdrawn

257

Appeal and conference rights not applicable in certain situations

257

Adverse determination letter on an issue that will not receive Appeals Office consideration

257

SECTION 10. DECLARATORY JUDGMENT PROVISIONS OF § 7428.

257

Actual controversy involving certain issues

257

Final determination to which § 7428 applies

258

Failure to make a determination to which § 7428 applies

258

§ 7428 does not apply to the non-acceptance or withdrawal of a request

258

Exhaustion of administrative remedies

258

Not earlier than 270 days after seeking determination

259

Service must have reasonable time to act on an appeal or protest

259

SECTION 11. FAVORABLE DETERMINATION LETTERS

259

Reliance on determination letter

259

Limitations on reliance

259

Post-determination review

260

SECTION 12. REVOCATION OR MODIFICATION OF A DETERMINATION LETTER

260

Appeal and conference procedures in the case of revocation or modification of exempt status letter

260

Revocation or modification of a determination letter may be retroactive

260

Organization may request that retroactivity be limited under § 7805(b)

261

Effective date of revocation or modification of a determination letter on exempt status

262

SECTION 13. DISCLOSURE OF APPLICATIONS AND DETERMINATION LETTERS INCLUDING THAT OF FOUNDATION STATUS

262

Determination letter will be disclosed under § 6104 or § 6110 depending on the type of request and the type of

determination letter issued

262

Disclosure of applications, supporting documents, and favorable determination letters under § 6104

262

Disclosure of determination letters under § 6110

263

Taxpayer may protest disclosure under § 6110 of certain information in a determination letter

263

Taxpayer may request delay of public inspection under § 6110

263

Disclosure to State officials when the Service refuses to recognize exemption under § 501(c)(3)

264

Disclosure to State officials of information about § 501(c)(3) applicants

264

SECTION 14. WHAT ARE THE USER FEE REQUIREMENTS FOR DETERMINATION LETTERS?

264

Legislation authorizing user fees.

264

Requests to which user fees apply

264

Requests and other actions to which user fees do not apply

264

Exemption from the user fee requirements

265

Requests involving multiple fee categories, issues, or entities

265

Method of payment

265

Transmittal forms

266

Effect of nonpayment or payment of incorrect amount

266

Refunds of user fees

266

Request for reconsideration of user fee

267

SECTION 15. MAILING ADDRESS FOR REQUESTING DETERMINATION LETTERS

267

SECTION 16. EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS

268

SECTION 17. EFFECTIVE DATE

268

SECTION 18. PAPERWORK REDUCTION ACT

268

DRAFTING INFORMATION

269

Appendix A

269

Appendix B

270

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

This revenue procedure sets forth procedures for issuing determination letters on issues under the jurisdiction of the Director, Exempt Organizations (EO) Rulings and Agreements. Specifi- cally, it explains the procedures for issuing determination letters on exempt status (in response to applications for recognition of exemption from Federal income tax under § 501 or § 521 other than those subject to Rev. Proc. 2018-4, this Bulletin (relating to pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans)), private foundation status, and other determinations related to exempt organizations. These procedures also apply to revocation or modification of determination letters. This revenue procedure also provides guidance on the exhaustion of administrative remedies for purposes of declaratory judgment under § 7428. Finally, this revenue procedure provides guidance on applicable user fees for requesting deter- mination letters.

Description of terms used in this revenue procedure

.01 For purposes of this revenue procedure-

(1) The term "Service" means the Internal Revenue Service.

(2) The term "EO Rulings and Agreements" means the office in EO that is primarily responsible for up-front, customer-initiated activities such as determination letter requests,

taxpayer assistance, and assistance to other EO offices. The EO Rulings and Agreements office
includes the offices of EO Determinations and EO Determinations Quality Assurance.

(3) The term "EO Determinations" means the office in EO Rulings and Agreements of the
Service that is primarily responsible for processing requests for determination letters.

(4) The term "Appeals Office" means any office under the direction and control of the Chief,
Appeals. The purpose of the Appeals Office is to resolve tax controversies, without litigation, on
a fair and impartial basis. The Appeals Office is independent of EO Rulings and Agreements.

(5) The term "determination letter" means a written statement issued by EO Determinations or
an Appeals Office in response to a request for the Service's ruling on a question of exempt status,
foundation status, or other determination under the jurisdiction of the Director, EO Rulings and
Agreements. This includes a written statement issued by EO Determinations or an Appeals Office
on the basis of advice secured from the Office of the Associate Chief Counsel (Tax Exempt and
Government Entities) pursuant to the procedures prescribed in Rev. Proc. 2018-2, this Bulletin.
A determination letter applies the principles and precedents previously announced to a specific set
of facts.

(6) The term "request" means the written submission that an organization uses to obtain a
determination letter in accordance with the requirements of this revenue procedure.

(7) The term "application" means a request for recognition of exemption from Federal income
tax under § 501 or § 521.

Updated Annually

.02 This revenue procedure is updated annually, but may be modified or amplified during the
year.

## SECTION 2. NATURE OF CHANGES TO REV. PROC. 2017-5 AND RELATED REVENUE PROCEDURES AND FORMS

What changes have been
made to Rev. Proc. 2017-5?

.01 This revenue procedure updates Rev. Proc. 2017-5, which deals with procedures for issuing
Exempt Organization determination letters. Notable changes to Rev. Proc. 2017-5 that appear in
this year's update include -

(1) Section 3.02 was amended to remove the term "ordinarily" to clarify the situations in which
the Service will not issue a determination letter.

(2) Section 3.02 was amended to include that the Service will not issue a determination letter
when the request concerns an organization whose purpose is directed to the improvement of
business conditions of one or more lines of business relating to an activity involving controlled
substances (within the meaning of schedule I and II of the Controlled Substances Act) which is
prohibited by Federal law regardless of its legality under the law of the state in which such activity
is conducted.

(3) Section 3.02 was amended to remove from the list of circumstances the Service will not
issue a determination letter when the request involves an industry-wide problem.

(4) Section 3.02 was amended to include that the Service will not issue a determination letter
when an organization currently recognized as exempt under § 501(c) (other than a government
entity as specified in section 3.01 (12)) requests a determination to relinquish its exempt status
under § 501(a).

(5) Section 6.05 was amended to include in the list of organizations ineligible to submit Form
1023-EZ, and that must use Form 1023 to apply for recognition of exemption under § 501(c)(3)
organizations applying for retroactive reinstatement under section 4 of Rev. Proc. 2014-11,
2014-3 I.R.B. 411, after being automatically revoked, that are seeking a foundation classification
that is different from the classification they had at the time of revocation.

(6) Section 6.08(2) was amended to include a citation to Treas. Reg. § 301.9100-3 clarifying
when additional relief is available for organizations failing to satisfy the 27 months filing
requirement in section 6.08(1).

(7) Section 12 was amended to modify procedures for requesting § 7805(b) relief to limit
retroactive revocation or modification of a determination letter.

(8) Section 13 was amended to correspond with the language in the regulations.

(9) Section 18 was amended and includes control numbers for Form 2848 and Form 8718.

(10) The Schedule of User Fees in Appendix A was amended, in part, to reflect a change to a
flat user fee of $600 for all § 501 applications other than Form 1023-EZ applications and includes
a change of a $2,000 fee for group exemption letters.

(11) Editorial changes were made throughout including minor non-substantive changes, dates,
and cross-references, and citations to other revenue procedures were changed to reflect the
appropriate annual revenue procedures.

### Related revenue procedures

.02 This revenue procedure supplements the following revenue procedures-

(1) Rev. Proc. 80-27, 1980-1 C.B. 677, which sets forth procedures under which exemption
may be recognized on a group basis for subordinate organizations affiliated with and under the
general supervision and control of a central organization.

(2) Rev. Proc. 72-5, 1972-1 C.B. 709, which provides information for religious and apostolic
organizations seeking recognition of exemption under § 501(d).

(3) Rev. Proc. 2015-17, 2015-7 I.R.B. 599, which provides information regarding procedures
for organizations described in § 501(c)(29).

(4) Rev. Proc. 2014-11, 2014-3 I.R.B. 411, which sets forth procedures for reinstating the
tax-exempt status of organizations that have had their tax-exempt status automatically revoked
under § 6033(j)(1).

(5) Rev. Proc. 2016-41, 2016-30 I.R.B. 165, which sets forth the procedure for an organi-
zation to notify the Service, consistent with § 506 of the Code, that it is operating as an
organization described in § 501(c)(4) of the Code.

## Related forms that are not a request for a determination letter

.03 Forms that are not requests for a determination. Certain organizations are required to
submit the following forms, but such forms are not requests for a determination and, thus, are not
subject to the procedures in this revenue procedure.

(1) Form 8871, Political Organization Notice of Section 527 Status. A political party, a
campaign committee for a candidate for Federal, State or local office, and a political action
committee are all political organizations subject to tax under § 527. To be tax-exempt, a political
organization may be required to notify the Service that it is to be treated as a § 527 organization
by electronically filing Form 8871, Political Organization Notice of Section 527 Status. See
https://www.irs.gov/Charities-&-Non-Profits/Political-Organizations.

(2) Form 8976, Notice of Intent to Operate Under Section 501(c)(4). An organization described
in § 501(c)(4) must, no later than 60 days after the date the organization is established, notify the
Service that it is operating as an organization described in § 501(c)(4) by submitting a completed Form
8976, Notice of Intent to Operate Under Section 501(c)(4). See https://www.irs.gov/charities-non-
profits/electronically-submit-your-form-8976-notice-of-intent-to-operate-under-section-501c4.

## SECTION 3. UNDER WHAT CIRCUMSTANCES DOES EO DETERMINATIONS ISSUE DETERMINATION LETTERS?

### Matters on which EO Determinations will issue a determination letter

.01 EO Determinations issues determination letters on the following matters:

(1) Initial qualification for exempt status of organizations described in § 501 or § 521
(including reinstatement of organizations that have been automatically revoked pursuant to
§ 6033(j) and subordinate organizations included in a group exemption letter that have been
revoked pursuant to that provision);

(2) Updated exempt status letter (affirmation letter) to reflect changes to an organization's name
or address, or to replace a lost exempt status letter;

(3) Classification or reclassification of private foundation status, including whether an orga-
nization is-

(a) A private foundation;

(b) A public charity described in §§ 509(a)(1) and 170(b)(1)(A) (other than clauses (v), (vii),
and (viii));

(d) A public charity described in § 509(a)(3), whether such organization is described in

§ 509(a)(3)(B)(i), (ii), or (iii) ("supporting organization type"), and whether or not a Type III
supporting organization is functionally integrated;

(e) A private operating foundation described in § 4942(j)(3); or

(f) An exempt operating foundation described in § 4940(d)(2).

(4) Recognition of unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and
509(a)(2);

(5) Requests for relief under § 301.9100-1 of the Procedure and Administration Regulations
in connection with applications for recognition of exemption;

(6) Terminations of private foundation status under § 507(b)(1)(B);

(7) Advance approval of certain set-asides described in § 4942(g)(2);

(8) Advance approval under § 4945(g) of organizations' grant making procedures;

(9) Advance approval of voter registration activities described in § 4945(f);

(10) Whether an organization is exempt from filing annual information returns under § 6033 as
provided in Treas. Reg. § 1.6033-2(g)(1), Rev. Proc. 95-48, 1995-2 C.B. 418, and Rev. Proc.
96-10, 1996-1 C.B. 577;

(11) Determination of foundation status under § 509(a)(3) of non-exempt charitable trusts
described in § 4947(a)(1); and

(12) Government entity voluntary termination of § 501(c)(3) recognition (must include docu-
mentation that the organization is not subject to income tax, other than under § 501(a)).

Circumstances under
which determination letters
are not issued

.02 The Service may decline to issue 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. In addition, the Service will not issue a determination letter in response to any
request if-

(1) the request involves an issue under the jurisdiction of the Associate Chief Counsel
described in Rev. Proc. 2018-1, this Bulletin;

(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case in
litigation or before an Appeals Office. If the issue in litigation involving the same taxpayer or a
related taxpayer is not the taxpayer or a related taxpayer's qualification as a tax-exempt entity
(such as a declaratory judgment action under § 7428), the Service may issue a determination letter
on exempt status after consultation with counsel;

(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);

(4) the determination letter is requested by an organization whose purpose is directed to the
improvement of business conditions of one or more lines of business relating to an activity
involving controlled substances (within the meaning of schedule I and II of the Controlled
Substances Act) which is prohibited by Federal law regardless of its legality under the law of the
state in which such activity is conducted;

(5) the request is based on alternative plans of proposed transactions or on hypothetical
situations. An application based on proposed activities that satisfies section 6.07(2) (related to
recognizing exempt status in advance of actual operations) is not considered to be based on
hypothetical situations;

(6) an organization currently recognized as exempt under § 501(c) seeks a new determination
letter confirming that the organization is still recognized under the same Code section under the
currently extant facts;

(7) an organization seeks a determination of foundation status that is identical to its current
foundation status as determined by EO Determinations. For example, an organization that is
already recognized as described in §§ 509(a)(1) and 170(b)(1)(A)(ii) as a school generally will not
receive a new determination letter that it is still described in §§ 509(a)(1) and 170(b)(1)(A)(ii)
under the currently extant facts;

(8) an organization currently recognized as described in § 501(c)(3) seeks a determination letter
recognizing the organization as described in a different subsection of § 501(c); or

(9) an organization currently recognized as exempt under § 501(c)(other than a government
entity as specified in section 3.01(12)) requests a determination to relinquish its exempt status
under § 501(a).

Note: In some circumstances, an organization may seek a letter ruling from the Associate Chief
Counsel (Tax Exempt and Government Entities) on a specific legal issue including whether an
activity furthers an organization's exempt purpose. See Rev. Proc. 2018-1 and Rev. Proc.
2018-3, this Bulletin.

Technical advice may be
requested in certain cases

.03 EO Determinations generally issues determination letters only if the question presented is
answered by a statute, tax treaty, regulation, court opinion, or guidance published in the Internal
Revenue Bulletin. At any time during the course of consideration by EO Determinations, if either
EO Determinations or the organization believes that its case involves an issue on which there is
no published precedent, or there has been non-uniformity in the Service's handling of similar
cases, EO Determinations may decide to seek, or the organization may request that EO Deter-
minations seek, technical advice from the Office of Associate Chief Counsel with subject matter
jurisdiction over the issue. See Rev. Proc. 2018-2, this Bulletin.

Review of determination
letters

.04 Determination letters issued under this revenue procedure are not generally reviewed by
any other office outside of EO Rulings and Agreements before they are issued. For post-
determination review of determination letters by EO Determinations Quality Assurance, see
section 11.03 of this revenue procedure.

Determination letter based solely on administrative record SECTION 4. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING DETERMINATION LETTERS?

.05 A determination letter is issued based solely upon the facts, attestations, and representations contained in the administrative record. (1) The taxpayer is responsible for the accuracy of any factual representations or attestations contained in the request.

(2) Any oral representation of additional facts, or modification of facts, as represented or alleged in the request, must be reduced to writing and signed by the taxpayer under a penalty of perjury statement, in accordance with section 4.06 of this revenue procedure. (3) The failure to disclose a material fact or misrepresentation of a material fact on the request, which includes an incorrect representation or attestation, may adversely affect the reliance that would otherwise be obtained through issuance by the Service of a favorable determination letter. See section 11.02 for additional information.

In general

.01 This section explains the general instructions for requesting determination letters. However, certain procedures do not apply to requests submitted on Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, as indicated in this revenue procedure or in the form and its instructions. In addition to these general instructions, specific procedures apply to requests submitted by letter (as described in section 5), applications for recognition of exemption from Federal income tax under § 501 or § 521 (as described in section 6), and to requests for determinations submitted on Form 8940, Request for Miscellaneous Determination (as described in section 7).

Format of request

.02 Which form, if any, should be used for the request? Some requests are made by letter and some requests are made by submitting a specific form.

Form 1023 application

(1) Form 1023 application. An organization seeking recognition of exemption under § 501(c)(3) (including an organization that is additionally seeking a determination that it is described in § 501(e), (f), (k), (n), (q), or (r)) must submit a completed Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. In the case of an organization that provides credit counseling services, see § 501(q). In the case of an organization that is a hospital and is seeking exemption under § 501(c)(3), see § 501(r). Notwithstanding the foregoing, eligible organizations may seek recognition of exemption under § 501(c) (3) by submitting a completed Form 1023-EZ, as described in section 6.06(2) of this revenue procedure, rather than by submitting Form 1023.

Form 1023-EZ application

(2) Form 1023-EZ application. An eligible organization, as described in section 6.05 of this revenue procedure, may, but is not required to, seek recognition of tax-exempt status under § 501(c)(3) by submitting a completed electronic Form 1023-EZ. Alternatively, an eligible organization may seek exemption under § 501(c)(3) by submitting a completed Form 1023, as described in section 6.06(1).

For additional information about the electronic submission process, refer to Form 1023-EZ and
its Instructions.

Form 1024 application

(3) Form 1024 application. An organization seeking a determination letter from the Service recognizing exemption under § 501(c)(2), (4), (5), (6), (7), (8), (9), (10), (12), (13), (15), (17), (19), or (25) must submit a completed Form 1024, Application for Recognition of Exemption Under Section 501(a), along with Form 8718, User Fee for Exempt Organization Determination Letter Request. In the case of an organization that provides credit counseling services and seeks recognition of exemption under § 501(c)(4), see § 501(q). Organizations that seek to operate under § 501(c)(9) or (17) must apply for recognition of tax-exempt status. See § 505. Other organizations may choose to seek a determination letter recognizing exemption under § 501 by filing Form 1024, but are not required to do so except in certain cases (see, for example, § 6033(j)(2) regarding failures to file annual information returns or annual electronic notifications required under § 6033 (a) or (i)).

Form 1028 application

(4) Form 1028 application. An organization seeking recognition of exemption under § 521 must submit a completed Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code, along with Form 8718.

Form 8940 request for miscellaneous determination

(5) Form 8940 request for miscellaneous determination. The Form 8940, Request for Miscellaneous Determination, is used for the following determination letter requests:

(a) Advance approval of certain set-asides described in § 4942(g)(2);

(b) Advance approval of voter registration activities described in § 4945(f);

(d) Exemption from Form 990 filing requirements;

(e) Advance approval that a potential grant or contribution constitutes an "unusual grant";

(f) Change in Type (or initial determination of Type) of a § 509(a)(3) organization;

(g) Reclassification of foundation status, including a voluntary request from a public charity for private foundation status;

(h) Termination of private foundation status under § 507(b)(1)(B)-advance ruling request; and

(i) Termination of private foundation status under § 507(b)(1)(B)-60-month period ended.

Letter request

(6) Letter request.

(a) Letter applications. (i) An organization seeking recognition of exemption under § 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29), or under § 501(d), must submit a letter application along with Form 8718.

(ii) A central organization that has previously received or is concurrently requesting recogni-
tion of its own exemption can request a group exemption letter by submitting a letter application
along with Form 8718.

(b) Other letter requests. Any determination letter request which is not required to be
submitted on a form may be submitted by letter.

Language requirements

.03 All requests must be submitted in English. All documents submitted in support of such
requests must be in English, or accompanied by an accurate and complete English translation.

Signature on request

.04 Signature on request. The request for determination letter must be signed and dated by the
taxpayer or, when applicable, the taxpayer's representative. Neither a stamped signature nor a
faxed signature is permitted.

(1) Individual authorized to sign Form 1023, 1023-EZ, or 8940 on behalf of an organi-
zation. In the case of a request for a determination letter made by filing Form 1023, Form
1023-EZ, or Form 8940, an officer, director, trustee, or other official who is authorized to sign for
the organization must sign the applicable form. The signature of a representative authorized by
a power of attorney who is not an officer, director, trustee, or other official of the organization will
not satisfy the signature requirement for Form 1023, Form 1023-EZ, or Form 8940. See the
instructions to the applicable form for more information on who may sign the application on
behalf of an organization.

(2) Individual or representative authorized to sign Form 1024. In the case of a request for
a determination letter made by filing Form 1024, an officer, a trustee who is authorized to sign,
or a representative authorized by a power of attorney (see section 4.05 of this revenue procedure),
must sign the application.

(3) Authorized representatives for all other requests. Except as provided in section 4.04(1)
and (2), to sign the request, or to appear before the Service in connection with the request, the
representative must be listed in Appendix B.

Power of attorney and
declaration of
representative

.05 Power of attorney and declaration of representative. Any representative authorized by
a power of attorney, whether or not enrolled to practice, must comply with the conference and
practice requirements of the Statement of Procedural Rules (26 C.F.R. § 601.501-601.509) and
Treasury Department Circular No. 230, which provide the rules for representing a taxpayer before
the Service.

Form 2848, Power of Attorney and Declaration of Representative, must 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 individual signing Part I of Form 2848 should also be typed or printed on this
form. A stamped signature is not permitted.

An original, a copy, or a facsimile transmission (fax) of the power of attorney is acceptable so
long as its authenticity is not reasonably disputed.

.06

(1) Penalty of perjury statement requirements for requests for determination letters made
on Form 1023, 1023-EZ, 1024, or 8940. The signature of an individual described in section
4.04(1) or (2) of this revenue procedure meets the penalty of perjury statement signature
requirements for requests on Form 1023, 1023-EZ, 1024, or 8940, as applicable.

(2) Penalty of perjury statement requirements for letter requests and responses to
requests for additional information. Any letter request or information submitted at a later time
(regardless of the format of the original request), must be accompanied by the following
declaration-

"Under penalties of perjury, I declare that I have examined this request, or this modification to
the request, including accompanying documents, and, to the best of my knowledge and belief,
the request or the modification contains all the relevant facts relating to the request, and such
facts are true, correct, and complete."

This declaration must be signed and dated by the taxpayer, not the taxpayer's representative
authorized by a power of attorney. The signature of an individual described in section 4.04(1) is
the signature of the taxpayer for purposes of the penalty of perjury statement. The signature of an
authorized representative described in section 4.04(2) or (3) will not meet the penalty of perjury
statement requirements (except as otherwise provided in Appendix B). See the instructions to the
relevant form for additional detail. Neither a stamped signature nor a faxed signature is permitted.

The individual 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
determination letter from the Service.

The individual signing for a trust, a state law partnership, or a limited liability company must
be, respectively, a trustee, general partner, or member-manager who has personal knowledge of
the facts.

Applicable user fee

.07 Section 7528 of the Code requires taxpayers to pay user fees for requests for determination
letters. See section 14 and Appendix A of this revenue procedure for more information.

Where will copies of the
determination letter be
sent?

.08 The original of the determination letter will be sent to the taxpayer and a copy of the
determination letter will be sent to up to two representatives listed on Form 2848 as appointed to
receive notices and communications.

Expedited processing

.09 Requests for determination letters are normally processed in the order of receipt by the
Service. However, expedited processing of a request for a determination letter may be approved
where a request for expedited processing is made in writing and contains a compelling reason for
processing the request for a determination letter ahead of others. Upon approval of a request for
expedited processing, a request for a determination letter will be considered ahead of the normal
order. This does not mean the request for a determination letter will be immediately approved or
denied.

(1) Procedures for requesting expedited handling. The request for expedited handling must
be made in writing, preferably in a separate letter sent with, or soon after filing, the request for
the determination letter. If the request is not made in a separate letter, then the letter in which the
determination letter request is made should say, at the top of the first page: "Expedited Handling
Is Requested. See page _of this letter."

A request for expedited handling will not be forwarded to the appropriate group for action until
the check or money order for the user fee in the correct amount is received.

Whether the request will be granted is within the Service's discretion. Circumstances generally
warranting expedited processing include:

(a) a grant to the applicant is pending and the failure to secure the grant may have an adverse
impact on the organization's ability to continue to operate;

(b) the purpose of the newly created organization is to provide disaster relief to victims of
emergencies such as flood and hurricane; and

Because most requests for determination letters cannot be processed ahead of their regular
order, the Service urges all taxpayers to submit their requests well in advance of the contemplated
transaction. In addition, in order to facilitate prompt action on determination letter requests,
taxpayers are encouraged to ensure that their initial submissions comply with all of the require-
ments of this revenue procedure, and to promptly provide any additional information requested
by the Service.

(2) Applications on Form 1023-EZ are ineligible for expedited handling. An organization
may not request expedited handling of a Form 1023-EZ.

Non-acceptance for
processing

.10 The Service will not accept for processing any request that is substantially incomplete.

(1) Requests other than Form 1023-EZ. An application other than Form 1023-EZ that is
missing any item of information listed in section 6.06(1) will be considered substantially
incomplete and will not be accepted for processing. A request other than an application may be
considered substantially incomplete if it does not contain the information, documentation, and
other materials required by sections 4, 5, or 7 of this revenue procedure, or Form 8940 and its
instructions, as applicable to the particular request.

(2) Requests on Form 1023-EZ. (a) Incomplete Form 1023-EZ. A submitted Form 1023-EZ
that is not a completed Form 1023-EZ within the meaning of section 6.06(2) of this revenue
procedure will not be accepted for processing by the Service. The Service may, but is not required
to, request additional information to validate information presented or to clarify an inconsistency
on a Form 1023-EZ.

(b) Form 1023-EZ and pending application. The Service will not accept for processing a
Form 1023-EZ from an organization that has an application for recognition of tax-exempt status
pending with the Service.

(3) Effect of non-acceptance. An organization will be notified if its request is not accepted for
processing and any user fee that was paid with the request will be returned or refunded. See
section 14.09. An organization may then submit a new request, including the missing information,
with a new user fee.

How to check on status of request

.11 The taxpayer or the taxpayer's authorized representative should refer to IRS.gov ("Where's My Exemption Application?") for guidelines on when to expect to hear from the Service and may obtain information regarding the status of a request by calling the toll-free Customer Account Services number, 877-829-5500.

SECTION 5. WHAT ARE THE SPECIFIC PROCEDURES FOR REQUESTING A DETERMINATION LETTER BY LETTER?

In general Certain information required

.01 This section explains the specific procedures for requesting a determination letter by letter. Any determination letter request which is not required to be submitted on a form may be submitted by letter. For example, an organization seeking to be described in § 501(d) would submit a letter application in accordance with this section 5, other applicable sections of this revenue procedure, and Rev. Proc. 72-5, 1972-1 C.B. 709.

Other specific procedures may apply, depending on the type of request. See section 6 of this revenue procedure for applications for recognition of exempt status under § 501 or § 521. .02

Statement of facts

(1) Complete statement of facts and other information. Each request for a determination letter must contain a complete statement of all facts relating to the request. These facts include the organization's name, address, telephone number, and Employer Identification Number (EIN).

Documents

(2) Copies of all organizing documents, bylaws, contracts, wills, deeds, agreements, instruments, and other documents. All documents that are pertinent to the request (including organizing documents, bylaws, contracts, wills, deeds, agreements, instruments, trust documents, and proposed disclaimers) must be submitted with the request.

Analysis of material facts

Same or similar issue previously submitted or currently pending

(4) 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 or the Office of Associate Chief Counsel 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;

(b) the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted
the same or similar issue to the Service or the Office of Associate Chief Counsel 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 the Office of Associate
Chief Counsel; 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 or the Office of Associate
Chief Counsel.

If the statement is affirmative for (a), (b), (c), or (d) of section 5.02(4), 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 or Office of Associate Chief Counsel's consideration of the
issue.

(5) 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

(a) 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.

(b) 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,
revenue rulings, revenue procedures, notices 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 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.

SECTION 6. WHAT ARE
THE SPECIFIC
PROCEDURES FOR
APPLICATIONS FOR
RECOGNITION OF
EXEMPT STATUS
UNDER § 501 OR § 521?

In general

.01 This section sets forth procedures for applying for and issuing determination letters in
response to applications for recognition of exempt status under § 501 or § 521 other than those
subject to Rev. Proc. 2018-4, this Bulletin (relating to pension, profit-sharing, stock bonus,
annuity, and employee stock ownership plans).

Terrorist organizations not
eligible to apply for
recognition of exemption

.02 An organization that is identified or designated as a terrorist organization within the
meaning of § 501(p)(2) is not eligible to apply for recognition of exemption.

Format of application

.03 An organization seeking recognition of exempt status under § 501 or § 521 is required to
submit the appropriate completed application form or the appropriate completed letter request. In
the case of a numbered application form, the current version of the form must be submitted.

Form 8718

.04 An organization applying for recognition of exempt status must attach a completed Form
8718, User Fee for Exempt Organization Determination Letter Request, to its application, unless
the organization is submitting Form 1023 or Form 1023-EZ. Form 8718 is an attachment related
to user fees that is not, itself, a determination letter application.

Form 1023-EZ applications

.05 (1) Eligibility for Form 1023-EZ application. An organization that is an eligible
organization may use Form 1023-EZ to apply for recognition of exemption under § 501(c)(3),
unless the organization is designated in section 6.05(2) as an organization that is ineligible to
submit Form 1023-EZ. An organization is an eligible organization if the organization meets all
of the following criteria:

(a) The organization has projected annual gross receipts of $50,000 or less in the current
taxable year and the next 2 years;

(b) The organization had annual gross receipts of $50,000 or less in each of the past 3 years
for which the organization was in existence; and

(c) The organization has total assets the fair market value of which does not exceed $250,000.
For purposes of this eligibility requirement, a good faith estimate of the fair market value of the
organization's assets is sufficient.

(2) Ineligibility for Form 1023-EZ application. The following organizations are not eligible
to submit Form 1023-EZ and must use Form 1023 to apply for recognition of exemption under
§ 501(c)(3):

(a) Organizations formed under the laws of a foreign country (United States territories and
possessions are not considered foreign countries);

(b) Organizations that do not have a mailing address in the United States (territories and
possessions are considered the United States for this purpose);

(c) Organizations that are successors to, or controlled by, an entity suspended under § 501(p)
(suspension of tax-exempt status of terrorist organizations);

(d) Organizations that are not corporations, unincorporated associations, or trusts, such as a
limited liability corporation (LLC);

(e) Organizations that are formed as for-profit entities or are successors to for-profit entities;

(f) Organizations that were previously revoked or that are successors to a previously revoked
organization (other than an organization the tax-exempt status of which was automatically
revoked for failure to file a Form 990 series return or notice for three consecutive years under
§ 6033(j));

(g) Churches or conventions or associations of churches described in § 170(b)(1)(A)(i);

(h) Schools, colleges, or universities described in § 170(b)(1)(A)(ii);

(i) Hospitals or medical research organizations described in § 170(b)(1)(A)(iii) or
§ 501(r)(2)(A)(i) (cooperative hospital service organizations described in § 501(e));

(j) Cooperative service organizations of operating educational organizations described in
§ 501(f);

(k) Qualified charitable risk pools described in § 501(n);

(l) Supporting organizations described in § 509(a)(3);

(m) Organizations that have as a substantial purpose providing assistance to individuals
through credit counseling activities such as budgeting, personal finance, financial literacy,
mortgage foreclosure assistance, or other consumer credit areas;

(n) Organizations that invest, or intend to invest, five percent or more of their total assets in
securities or funds that are not publicly traded;

(o) Organizations that participate, or intend to participate, in partnerships (including entities or
arrangements treated as partnerships for Federal tax purposes) in which they share profits and
losses with partners other than § 501(c)(3) organizations;

(p) Organizations that sell, or intend to sell, carbon credits or carbon offsets;

(q) Health Maintenance Organizations (HMOs);

(r) Accountable Care Organizations (ACOs), or organizations that engage in, or intend to
engage in, ACO activities (such as participation in the Medicare Shared Savings Program (MSSP)
or in activities unrelated to the MSSP described in Notice 2011-20, 2011-16 I.R.B. 652);

(s) Organizations that maintain, or intend to maintain, one or more donor advised funds;

(t) Organizations that are organized and operated exclusively for testing for public safety and
that are requesting a foundation classification under § 509(a)(4);

(u) Private operating foundations;

(v) Organizations that are applying for retroactive reinstatement of exemption under sections
5 or 6 of Rev. Proc. 2014-11, 2014-3 I.R.B. 411, after being automatically revoked (see section
6.05(3) of this revenue procedure for additional information);

(w) Organizations applying for retroactive reinstatement under section 4 of Rev. Proc. 2014-
11, 2014-3 I.R.B. 411, after being automatically revoked that are seeking a foundation classi-
fication that is different from the classification they had at the time of revocation.

(x) Agricultural research organizations described in § 170(b)(1)(A)(ix); and

(y) Organizations that are currently or were previously exempt under another subsection of
§ 501(c).

Further information regarding these eligibility requirements may be provided in the Instruc-
tions for Form 1023-EZ.

Form 1023 and Form
1023-EZ applications for
reinstatement after
automatic revocation

(3) Form 1023 and Form 1023-EZ applications for reinstatement after automatic revo-
cation. Organizations that claim exempt status under § 501(c) generally must file annual Form
990 series returns or notices, even if they have not yet received their determination letter
recognizing exemption. If an organization fails to file required Form 990 series returns or notices
for three consecutive years, its exemption will be automatically revoked by operation of § 6033(j).
Such an organization may apply for reinstatement of its exempt status, and such recognition may
be granted retroactively, as provided in Rev. Proc. 2014-11. Consistent with the eligibility
requirements for using Form 1023-EZ that are set forth in section 6.05(1)-(2) of this revenue
procedure, only an organization requesting reinstatement of § 501(c)(3) status under section 4
(streamlined retroactive reinstatement of tax-exempt status for small organizations within 15
months of revocation) or section 7 (reinstatement of tax-exempt status from postmark date) of
Rev. Proc. 2014-11 may apply using Form 1023-EZ (other than an organization also seeking a
foundation status change as explained in section 6.05(2)(w)). An organization requesting rein-
statement of § 501(c)(3) status under section 5 (retroactive reinstatement of tax-exempt status
within 15 months of revocation) or section 6 (retroactive reinstatement more than 15 months after
revocation) of Rev. Proc. 2014-11 must apply using Form 1023.

What are the requirements
for a completed
application?

Requirements for a
completed application
other than a Form 1023-
EZ application

.06

(1) A completed application (other than a Form 1023-EZ), including a letter application, is one
that:

(a) is signed by an authorized individual under penalties of perjury (see sections 4.04 and 4.06
of this revenue procedure);

(b) includes the organization's correct EIN;

(c) (i) for organizations other than those described in § 501(c)(3), includes a statement of
receipts and expenditures and a balance sheet for the current year and the three preceding years
(or the years the organization was in existence, if less than four years), and if the organization has
not yet commenced operations or has not completed one accounting period, a proposed budget for
two full accounting periods and a current statement of assets and liabilities;

(ii) for organizations described in § 501(c)(3), see Form 1023 and Notice 1382, Changes for
Form 1023;

(d) includes a detailed narrative statement of proposed activities, including each of the
fundraising activities of a § 501(c)(3) organization, and a narrative description of anticipated
receipts and contemplated expenditures;

(e) includes a copy of the organizing or enabling document that is signed by a principal officer
or two members in the case of an unincorporated association, or is accompanied by a written
declaration signed by an authorized individual certifying that the document is a complete and
accurate copy of the original or otherwise meets the requirements of a "conformed copy" as
outlined in Rev. Proc. 68-14, 1968-1 C.B. 768;

(f) if the organizing or enabling document is in the form of articles of incorporation, includes
evidence that it was filed with, and approved by, an appropriate state official (e.g., stamped
"Filed" and dated by the Secretary of State); alternatively, a copy of the articles of incorporation
may be submitted if accompanied by a written declaration signed by an authorized individual that
the copy is a complete and accurate copy of the original copy that was filed with and approved
by the state; if a copy is submitted, the written declaration must include the date the articles were
filed with the state;

(g) if the organization has adopted bylaws or similar governing rules, includes a current copy;
the bylaws need not be signed if submitted as an attachment to the application for recognition of
exemption; otherwise, the bylaws must be verified as current by an authorized individual (see
section 4.04 of this revenue procedure);

(h) is accompanied by the correct user fee (and Form 8718, when applicable).

Requirements for a
completed Form 1023-EZ
application

(2) A Form 1023-EZ submitted online at www.pay.gov by an eligible organization is complete
if it:

(a) includes responses for each required line item of the form, including an accurate date of
organization and an attestation that the organization has completed the Form 1023-EZ eligibility
worksheet, as in effect on the date of submission, is eligible to apply for exemption using Form
1023-EZ, and has read the Instructions for Form 1023-EZ and understands the requirements to be
exempt under § 501(c)(3) as expressed therein;

(b) includes the organization's correct EIN;

(c) is electronically signed, under penalties of perjury, by an individual authorized to sign for
the organization (as specified in sections 4.04 and 4.06 of this revenue procedure and the
Instructions for Form 1023-EZ); and

(d) is accompanied by the correct user fee.

A Form 1023-EZ will not be considered complete if the organization's name and EIN do not
match the records in the Service's Business Master File. Furthermore, a Form 1023-EZ submitted
by an organization that is not an eligible organization within the meaning of section 6.05 of this
revenue procedure will not be considered complete.

### .07 What are the standards for issuing a determination letter on exempt status?

Exempt status must be
established in application,
including attestation and
supporting documents

(1) A favorable determination letter will be issued to an organization if its completed
application, including attestations and supporting documents, along with any additional informa-
tion requested by the Service and provided by the organization, establishes that it meets the
particular requirements of the section under which exemption from Federal income tax is claimed.

Exempt status may be
recognized in advance of
actual operations

(2) (a) For all applications other than a Form 1023-EZ, exempt status may be recognized in
advance of the organization's operations if the proposed activities are described in sufficient detail
to permit a conclusion that the organization will clearly meet the particular requirements for
exemption pursuant to the section of the Code under which exemption is claimed.

(i) A mere restatement of exempt purposes or a statement that proposed activities will be in
furtherance of such purposes will not satisfy this requirement.

(ii) The organization must fully describe all of the activities in which it expects to engage,
including the standards, criteria, procedures, or other means adopted or planned for carrying out
the activities, the anticipated sources of receipts, and the nature of contemplated expenditures.

(iii) Where the organization cannot demonstrate to the satisfaction of the Service that it
qualifies for exemption pursuant to the section of the Code under which exemption is claimed, the
Service will generally issue a proposed adverse determination letter. See section 9 of this revenue
procedure.

(b) For Form 1023-EZ applications, exempt status may be recognized in advance of the
organization's operations if the attestations contained in the organization's completed Form
1023-EZ (along with any additional information requested by the Service and provided by the
organization) establish that it meets the requirements for exemption under § 501(c)(3).

Even if application is
complete, additional
information may be
required

(3) Even though an application is complete, the Service may request additional information
before issuing a determination letter. The failure to respond to a request for additional information
may result in the closure of the application without a determination letter being issued and without
a refund of the user fee. If the failure to respond to a request for additional information results in
the Service issuing a proposed adverse determination letter to the organization, the proposed
adverse determination letter will inform the organization of its opportunity to protest/appeal the
decision and request a conference. See section 9 for the applicable appeal/protest procedures.

(a) In the case of an application under § 501(c)(3), the period of time beginning on the date the
Service requests additional information until the date the information is submitted to the Service
will not be counted for purposes of the 270-day period referred to in § 7428(b)(2).

(b) The Service will select a statistically valid random sample of Form 1023-EZ applications
for pre-determination reviews, which will result in requests for additional information.

Effective date of exemption
.08

(1) In general. A determination letter recognizing exemption of an organization described in
§ 501(c), other than § 501(c)(29), is effective as of the date of formation of an organization if: (1)
its purposes and activities prior to the date of the determination letter have been consistent with
the requirements for exemption; and (2) it has filed an application for recognition of exemption
within 27 months from the end of the month in which it was organized.

(2) Special cases. Special rules may apply to an organization applying for exemption under
§ 501(c)(3), (9), or (17). See §§ 505 and 508, and Treas. Reg. §§ 1.508-1(a)(2), 1.508-1(b) (7),
and 301.9100-2(a)(2)(iii) and (iv) and 301.9100-3. In addition, special rules apply with respect
to organizations described in § 501(c)(29). See Rev. Proc. 2012-11, 2012-7 I.R.B. 368.

(3) When the Service requires the organization to make amendments.

(a) If the Service requires the organization to alter its activities or make substantive amend-
ments to its enabling instrument, the exemption will be effective as of the date specified in the
determination letter.

(b) If the Service requires the organization to make a nonsubstantive amendment, exemption
will ordinarily be recognized as of the date of formation if it meets the requirements in section
6.08(1) of this revenue procedure. Examples of nonsubstantive amendments include correction of
a clerical error in the enabling instrument or the addition of a dissolution clause where the
activities of the organization prior to the determination letter are consistent with the requirements
for exemption.

(4) When an application is not submitted within 27 months of formation. An organization that
otherwise meets the requirements for tax-exempt status and the issuance of a determination letter that
does not meet the requirements for recognition from date of formation will be recognized from the
postmark date of its application or the submission date of its 1023-EZ, as applicable.

SECTION 7. WHAT ARE
THE SPECIFIC
PROCEDURES FOR
DETERMINATION
LETTER REQUESTS ON
FORM 8940?

In general

.01 This section explains the specific procedures for requesting a determination letter by
submitting Form 8940, including requests for a determination letter on foundation status.

Requests made on Form
8940

.02 A request described in section 4.02(5) must be submitted on Form 8940 (except where
otherwise permitted, including when such request is made as part of an application for recognition
of exempt status), along with all information, documentation, and other materials required by
Form 8940 and the instructions thereto, as well as the appropriate user fee provided in Appendix
A. For complete information about filing requirements and the submission process, refer to Form
8940 and the Instructions for Form 8940.

Initial classification of
private foundation status

.03 All § 501(c)(3) organizations are classified as private foundations under § 509(a) unless
they qualify as a public charity under § 509(a)(1) (which cross-references § 170(b)(1)(A)(i)-(vi)),
(2), (3), or (4). See Treas. Reg. §§ 1.170A-9, 1.509(a)-1 through 1.509(a)-7. The Service
determines an organization's private foundation or public charity status when the organization
files its Form 1023, or when eligible, Form 1023-EZ. This status will be included in the
organization's determination letter on exempt status.

Under what circumstances
must an organization
request a determination of
foundation status, and when
is such a request optional?

.04 (1) Requests to change from one public charity classification to another public charity
classification. On its Form 990, Return of Organization Exempt From Income Tax Under section
501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations), a public
charity indicates the paragraph of § 509(a), and subparagraph of § 170(b)(1)(A), if applicable,
under which it qualifies as a public charity. Because of changes in its activities or operations, this
may differ from the public charity status listed in its original determination letter. Although an
organization is not required to obtain a determination letter to qualify for the new public charity
status, in order for Service records to recognize any change in public charity status, an organi-
zation must obtain a new determination of foundation status by filing Form 8940 pursuant to this
revenue procedure.

(2) Requests from public charities for private foundation status. If a public charity no
longer qualifies as a public charity under § 509(a)(1)-(4), then it becomes a private foundation,
and as such, it must file Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust
Treated as Private Foundation. The organization is not required to, but may, obtain a determi-
nation letter on its new private foundation status. The organization indicates this change in
foundation status by filing its Form 990-PF return and following any procedures specified in the
form, instructions, or other published guidance. Thereafter, the organization may terminate its
private foundation status, such as by giving notice and qualifying as a public charity again under
§ 509(a)(1)-(3) during a 60-month termination period in accordance with the procedures under
§ 507(b)(1)(B) and Treas. Reg. § 1.507-2(b).

(3) Requests from private foundations for public charity status. An organization that
erroneously determined that it was a private foundation (for example, by erroneously classifying
an item or items in its calculation of public support) and wishes to correct the error can request
a determination letter classifying it as a public charity by showing that it continuously met the
public support tests during the relevant periods.

(4) Requests for private operating foundation status. A private foundation may qualify as
an operating foundation under § 4942(j)(3) without a determination letter from the Service, but
the Service will not recognize such status in its records without a determination letter from the
Service. An organization claiming to be an exempt operating foundation under § 4940(d)(2) must
obtain a determination letter from the Service recognizing such status to be exempt from the
§ 4940 tax on net investment income.

Not applicable to private
foundation terminations
under § 507 or changes of
status pursuant to
examination

.05

(1) The procedures in this revenue procedure do not apply to the notice an organization must
submit in seeking to terminate its private foundation status under § 507.

(2) The procedures in this revenue procedure also do not apply to the examination of an
organization which results in changes to its foundation status.

# SECTION 8. WITHDRAWAL OF A REQUEST FOR DETERMINATION LETTER

## Request may be withdrawn prior to issuance of a determination letter

.01 A taxpayer may withdraw a request for a determination letter at any time before the
determination letter is issued by the Service. An authorized individual must make such a request
in writing in accordance with the instructions to the form on which the request for a determination
letter was submitted, if applicable. For purposes of this section, the issuance of a determination
letter includes a proposed adverse determination letter.

(1) When a request for determination letter is withdrawn, the Service will retain the application,
Form 8940, or letter request and all supporting documents.

(2) The Service may consider the information submitted in connection with the withdrawn
request in a subsequent examination of the organization, or in connection with a subsequent
application submitted by the organization.

(3) Generally, the user fee will not be refunded if a request is withdrawn. See section 14 of this
revenue procedure.

§ 7428 implications of
withdrawal of application
under § 501(c) or (d)

.02 The withdrawal of an application under § 501(c) or (d) is not a failure to make a
determination within the meaning of § 7428(a)(2) or an exhaustion of administrative remedies
within the meaning of § 7428(b)(2).

## SECTION 9. PROCEDURES FOR ADVERSE DETERMINATION LETTERS

In general

.01 This section explains the procedures for issuing adverse determination letters. Different
procedures apply to adverse determination letters relating to issues that may receive Appeals
consideration and to all other types of adverse determination letters.

### Types of requests that may receive Appeals Office consideration

.02 The following types of determination letter requests will provide an organization with an
opportunity to protest/appeal a proposed adverse determination:

(a) the initial qualification of the organization as exempt from tax under § 501(a) or § 521, or
as an organization described in § 170(c)(2);

(b) the classification or reclassification of the organization's foundation status under § 509(a);
and

Contents of proposed adverse determination letter for requests with appeals rights

.03 If EO Determinations reaches the conclusion that the organization does not meet the requirements for a favorable determination letter and the letter is a type for which an opportunity for protest/appeal is available under section 9.02, the Service will issue a proposed adverse determination letter, which will:

(a) include a detailed discussion of the basis for the Service's conclusion; and

(b) inform the organization of its opportunity to protest/appeal the decision and request a conference.

The non-acceptance under section 4.10 of a request for a determination letter is not a proposed adverse determination.

Protest/appeal of a proposed adverse determination letter on certain issues

.04 To protest/appeal a proposed adverse determination letter described in section 9.02, the organization must submit a statement of the facts, law and arguments in support of its position within 30 days from the date of the proposed adverse determination letter. The organization must also state whether it is requesting an Appeals Office conference.

Final adverse determination letter where no protest/appeal is submitted

.05 If an organization does not submit a timely protest/appeal of a proposed adverse determi- nation letter on an issue described in section 9.02, a final adverse determination letter will be issued to the organization. The final adverse letter will provide information about the disclosure of the proposed and final adverse letters. See section 13.04 of this revenue procedure. The non-acceptance under section 4.10 of a request for a determination letter is not a final adverse determination.

Review of protest by EO Determinations

.06 If an organization submits a protest/appeal of a proposed adverse determination letter described in section 9.02, EO Determinations will review the protest, and, if it determines that the organization meets the requirements for approval of its request, issue a favorable determination letter. If EO Determinations maintains its adverse position after reviewing the protest, it will forward the case file to Appeals. If new information is raised in the protest, EO Determinations will follow the procedures described in section 9.08, which may require the issuance of a new proposed denial, prior to sending the case to Appeals.

Consideration by the Appeals Office

.07 The Appeals Office will consider the organization's protest/appeal submitted in response to a proposed adverse determination letter described in section 9.02. If the Appeals Office agrees with the proposed adverse determination, it will either issue a final adverse determination or, if a conference was requested, contact the organization to schedule a conference. At the end of the conference process, which may involve the submission of additional information, the Appeals Office will generally issue a final adverse determination letter or a favorable determination letter.

If the Appeals Office believes that an exemption or private foundation status issue is not covered by published precedent or that there is non-uniformity, the Appeals Office must request technical advice from the Office of Associate Chief Counsel (Tax Exempt and Government Entities). See Rev. Proc. 2018-2, this Bulletin.

Effect of new information raised in protest/appeal

.08 If the organization submits new information as part of a protest, or during Appeals consideration, the matter may be returned to EO Determinations for further consideration. As a result of its review of the new information, EO Determinations may issue a favorable determi- nation letter, rebuttal letter, or new proposed adverse determination letter. If a rebuttal letter is

issued, EO Determinations will forward the case to the Appeals Office. If a new proposed adverse
determination letter is issued, the organization must submit a protest/appeal of the new proposed
adverse determination letter in order to have Appeals Office consideration of the issue.

An appeal or protest may
be withdrawn

.09 An organization may withdraw its protest/appeal before the Service issues a final adverse
determination letter. Upon receipt of the withdrawal request, the Service will complete the
processing of the case in the same manner as if no appeal or protest was received. An organization
that withdraws a protest/appeal will not be considered to have exhausted its administrative
remedies within the meaning of § 7428(b)(2).

### Appeal and conference rights not applicable in certain situations

.10 The opportunity to appeal a proposed adverse determination letter and the conference rights
described above are not applicable to matters where delay would be prejudicial to the interests of
the Service (such as in cases involving fraud, jeopardy, the imminence of the expiration of the
statute of limitations, or where immediate action is necessary to protect the interests of the
Government).

### Adverse determination letter on an issue that will not receive Appeals Office consideration

.11 If EO Determinations reaches the conclusion that the organization does not meet the
requirements for a favorable determination on an issue that is not described in section 9.02 (e.g.,
advance approval that a potential grant or contribution constitutes an "unusual grant"; exemption
from Form 990 filing requirements), the Service generally will advise the organization of its
adverse position and give the organization a chance to submit additional information or withdraw
the request before issuing an adverse determination letter, which will include a detailed discussion
of the basis for the Service's conclusion. The organization will not have the opportunity to
protest/appeal the adverse determination letter.

## SECTION 10. DECLARATORY JUDGMENT PROVISIONS OF § 7428

### Actual controversy involving certain issues

.01 Generally, a declaratory judgment proceeding under § 7428 can be filed in the United States
Tax Court, the United States Court of Federal Claims, or the District Court of the United States
for the District of Columbia with respect to an actual controversy involving a determination by
the Service or a failure of the Service to make a determination with respect to:

(1) the initial qualification or continuing qualification of an organization as an organization
described in § 501(c)(3) which is exempt from tax under § 501(a) or as an organization described
in § 170(c)(2);

(2) the initial classification or continuing classification of an organization as a private foun-
dation (as defined in § 509(a));

(3) the initial classification or continuing classification of an organization as a private operating
foundation (as defined in § 4942(j)(3));

(4) the initial classification or continuing classification of a cooperative as an organization
described in § 521(b) which is exempt from tax under § 521(a); or

(5) the initial qualification or continuing qualification of an organization as an organization
described in § 501(c) (other than paragraph (3)) or § 501(d) and exempt from tax under § 501(a).

### Final determination to which § 7428 applies

.02 A final determination to which § 7428 applies is a determination letter, sent by certified or
registered mail, which holds that the organization is:

(1) not described in § 501(c), § 501(d), or § 170(c)(2);

(2) a public charity described in a part of § 509 or § 170(b)(1)(A) other than the part under
which the organization requested classification;

(3) not a private operating foundation as defined in § 4942(j)(3); or

(4) a private foundation and not a public charity described in a part of § 509 or § 170(b)(1)(A).

Failure to make a
determination to which
§ 7428 applies

.03 If the Service declines to issue a determination letter under section 3.02 of this revenue
procedure to an organization seeking a determination described in section 10.01 of this revenue
procedure, the organization may be able to pursue a declaratory judgment under § 7428, provided
that it has exhausted its administrative remedies.

§ 7428 does not apply to
the non-acceptance or
withdrawal of a request

.04 (1) The non-acceptance for processing of a request under section 4.10 of this revenue
procedure is not a final determination, or a failure to make a determination, to which § 7428
applies.

(2) The withdrawal of an application pursuant to section 8 is not a failure to make a
determination within the meaning of § 7428(b)(2).

### Exhaustion of administrative remedies

.05 Before filing a declaratory judgment action, an organization must exhaust its administrative
remedies by taking, in a timely manner, all reasonable steps to secure a determination from the
Service. These include:

(1) (a) For an organization seeking to be described in § 501(c)(3), the filing of a completed
application Form 1023 (within the meaning of section 6.06(1) of this revenue procedure) or a
completed Form 1023-EZ (within the meaning of section 6.06(2) of this revenue procedure);

(b) For an organization seeking private foundation classification, a completed Form 8940; or

(c) For an organization seeking to be described in § 501(c) (other than paragraph (3)) or in
§ 501(d), a completed appropriate Form or letter request (within the meaning of section 6.06(1)).

(2) In appropriate cases, requesting relief pursuant to Treas. Reg. § 301.9100-1 of the
Procedure and Administration Regulations regarding the extension of time for making an election
or application for relief from tax;

(3) When applicable, the timely submission of all additional information requested by the
Service to perfect a determination letter request;

(4) In appropriate cases, requesting relief under § 7805(b) in the manner provided in section
12.04 of this revenue procedure; and

(5) Exhaustion of all administrative appeals available within the Service pursuant to section 9
of this revenue procedure.

An organization will not have exhausted its administrative remedies by completing the steps in
this section if the organization submitted Form 1023-EZ but was not eligible to submit Form
1023-EZ, as described in section 6.05(1)-(2) of this revenue procedure.

#### Not earlier than 270 days after seeking determination

.06 An organization will in no event be deemed to have exhausted its administrative remedies
prior to the earlier of:

(1) the completion of all reasonable steps to secure a determination from the Service, including
the applicable steps in section 10.05, and the issuance by the Service by certified or registered
mail of a final determination letter; or

(2) the expiration of the 270-day period described in § 7428(b)(2) in a case where the Service
has not issued a final determination letter, and the organization has taken, in a timely manner, all
reasonable steps to secure a determination letter as provided in section 10.05. The 270-day period
referred to in § 7428(b)(2) will not be considered to have started prior to the date a completed
application is submitted to the Service. If the Service requests additional information from an
organization, the period of time beginning on the date the Service requests additional information
until the date the information is submitted to the Service will not be counted for purposes of the
270-day period referred to in § 7428(b)(2).

Service must have
reasonable time to act on
an appeal or protest

.07 The steps described in section 10.05 will not be considered completed until the Service has
had a reasonable time to act upon a protest/appeal.

## SECTION 11. FAVORABLE DETERMINATION LETTERS

Reliance on determination
letter

.01 A taxpayer ordinarily may rely on a favorable determination letter received from the
Service, regardless of the format of request submitted, subject to the conditions and limitations
described in this section.

Limitations on reliance

.02

(1) Will not apply to another taxpayer. A taxpayer may not rely on, use, or cite as precedent
a determination letter issued to another taxpayer. See § 6110(k)(3).

(2) Material change in facts. A determination letter may not be relied upon by the organi-
zation submitting the request if there is a material change in facts. For a determination letter on
exempt status, a material change, inconsistent with exemption, includes a change in the character,
the purpose, or the method of operation of the organization. See section 12.01 of this revenue
procedure.

(3) Inaccurate information on request. A determination letter issued to an organization
that submitted a request in accordance with this revenue procedure may not be relied upon
by the organization submitting the request if it was based on any omission or inaccurate
material information submitted by the organization. Inaccurate material information includes

an incorrect representation or attestation as to the organization's organizational documents,
the organization's exempt purpose, the organization's conduct of prohibited and restricted
activities, or the organization's eligibility to file Form 1023-EZ. See section 12.01 of this
revenue procedure.

(4) Change in law. A change in law may affect reliance. See section 12.01 of this revenue
procedure.

### Post-determination review

.03

(1) Determination letters may be post-reviewed. Determination letters may be reviewed by
EO Determinations Quality Assurance to assure uniform application of the statutes, tax treaties,
regulations, court opinions, or guidance published in the Internal Revenue Bulletin.

(2) Procedures for addressing determination letters reviewed and found to have been
issued in error. If upon post-determination review EO Determinations Quality Assurance
concludes, based on the information contained in the existing application file, that a determination
letter issued by EO Determinations was issued in error, the matter will be referred to EO
Examinations for consideration.

## SECTION 12. REVOCATION OR MODIFICATION OF A DETERMINATION LETTER

.01 In general. A determination letter may be revoked or modified:

(1) by a notice to the taxpayer to whom the determination letter was issued;

(2) by enactment of legislation or ratification of a tax treaty;

(3) by a decision of the Supreme Court of the United States;

(4) by the issuance of temporary or final regulations;

(5) by the issuance of a revenue ruling, revenue procedure, or other statement published in the
Internal Revenue Bulletin; or

(6) automatically for a determination letter recognizing exemption, pursuant to § 6033(j), for
failure to file a required annual return or notice for three consecutive years.

Note: If an organization no longer qualifies under the Code section for which it originally
applied for recognition of tax-exempt status, then the determination letter will be revoked, rather
than modified.

Appeal and conference
procedures in the case of
revocation or modification
of exempt status letter

.02 In the case of a revocation or modification of a determination letter described in section
9.02, the procedures to protest/appeal the revocation or modification are generally the same as set
out in section 9 of this revenue procedure. However, organizations revoked under § 6033(j) will
not have an opportunity for Appeals consideration.

Revocation or modification
of a determination letter
may be retroactive

.03 The revocation or modification of a determination letter may be retroactive if:

(1) there has been a change in the applicable law;

(2) the organization omitted or misstated material information. A misstatement of material
information includes an incorrect representation or attestation as to the organization's organiza-
tional documents, the organization's exempt purpose, the organization's conduct of prohibited
and restricted activities, or the organization's eligibility to file Form 1023-EZ;

(3) the organization operated in a manner materially different from that originally represented
in an application for recognition of exemption; or

(4) in the case of an organization to which § 503 applies, the organization engaged in a
prohibited transaction with the purpose of diverting corpus or income of the organization from its
exempt purpose and such transaction involved a substantial part of the corpus or income of such
organization.

If a determination letter is revoked or modified by a letter with retroactive effect, the letter will,
except in fraud cases, state the grounds on which the determination letter is being revoked or
modified and explain the reasons why it is being revoked or modified retroactively.

Organization may request
that retroactivity be
limited under § 7805(b)

.04 An organization may seek relief from retroactive revocation or modification of a determi-
nation letter under § 7805(b). A request for relief under § 7805(b) must be in writing and must
be submitted to the agent or specialist assigned to the case. The request for relief under § 7805(b)
must be submitted before issuance of the final adverse determination letter.

(1) Form of request for relief. An organization's request to limit the retroactive effect of the
revocation or modification of the determination letter must-

(a) state that it is being made under § 7805(b);

(b) state the relief sought;

(d) include any documents bearing on the request.

(2) Notice of denial of request for relief. If the request for relief under § 7805(b) is denied,
the organization will be notified in writing of the denial.

(3) Organization must exhaust its administrative remedies. If an organization seeks declar-
atory judgment under § 7428 in response to a retroactive revocation or modification, to preserve
judicial review of a claim for relief under § 7805(b), the organization must follow the steps in this
revenue procedure in order to have exhausted its administrative remedies with respect to its
request under § 7805(b). If the organization does not complete the applicable steps, the organi-
zation will not have exhausted its administrative remedies as required by § 7428(b)(2) with
respect to its request for § 7805(b) relief, and will thus be precluded from obtaining § 7805(b)
relief in any declaratory judgment it seeks under § 7428.

If the organization has requested § 7805(b) relief, the organization's administrative remedies

with respect to its § 7805(b) request will not be considered exhausted until the Service has had
a reasonable amount of time to act upon the request.

## Effective date of revocation or modification of a determination letter on exempt status

## .05 Effective date of revocation or modification.

(1) Where the organization omitted or misstated material information in a request, revocation
or modification will be effective as of the effective date of the determination letter issued in
response to the request.

(2) Where there is a material change in facts, inconsistent with the conclusion of a determi-
nation letter, revocation or modification will ordinarily take effect as of the date of such material
change.

(3) If a determination letter was issued in error or is no longer in accord with the Service's
position, and § 7805(b) relief is granted (see section 12.04 of this revenue procedure), ordinarily,
the revocation or modification will be effective not earlier than the date on which the Service
modifies or revokes the original determination letter.

SECTION 13.
DISCLOSURE OF
APPLICATIONS AND
DETERMINATION
LETTERS INCLUDING
THAT OF FOUNDATION
STATUS

Determination letter will
be disclosed under § 6104
or § 6110 depending on the
type of request and the
type of determination letter
issued

.01 Sections 6104 and 6110 provide rules for the disclosure of requests, including forms,
supporting documents, and determination letters issued in response to requests.

(1) A favorable determination letter issued in response to an application for recognition
of exemption from Federal income tax under §§ 501 or 521, as well as certain determination
letters regarding foundation status are disclosed under § 6104. Determination letters that an
applicant organization is exempt from Federal income tax and letters or documents issued by the
Service that an organization is or is not a private foundation, or described in §§ 509(a),
4940(d)(2), 4942(j)(3), or 4940(f) are disclosed under § 6104.

(2) Other determination letters are disclosed under § 6110. Any determination letter that is
not disclosed under § 6104 is disclosed under § 6110. This includes proposed and final denial of
exemption when such denial becomes final, advance approval of grant making procedures
described in § 4545(g), advance approval of certain set-asides described in § 4942(g)(2), advance
approval of voter registration activities described in § 4945(f), and advance approval of an
unusual grant per Rev. Proc. 81-7, 1981-1 C.B. 621.

(3) Whether other determination letters are disclosed under § 6104 or § 6110 will vary based
on the type of determination.

Disclosure of applications,
supporting documents, and
favorable determination
letters under § 6104

.02 If a favorable determination letter is issued in response to an application for recognition of
exemption from Federal income tax under § 501 or § 521, the application form, any supporting
documents, and any determination letter issued in response to the application (including a
proposed adverse determination letter), are available for public inspection upon request under
§ 6104(a)(1). In addition, letters or documents issued by the Service that an organization is or is

not a private foundation, or described in §§ 509(a), 4940(d)(2), 4942(j)(3), or 4940(f) are
disclosed under § 6104. However, there are certain limited disclosure exceptions for a trade
secret, patent, process, style of work, or apparatus, if the Service determines that the disclosure
of the information would adversely affect the organization.

(1) The public can request information available for public inspection under § 6104(a)(1) by
submitting Form 4506-A, Request for Public Inspection or Copy of Exempt or Political
Organization IRS Form. Organizations should ensure that applications and supporting documents
do not include unnecessary personal identifying information (such as bank account numbers or
social security numbers) that could result in identity theft or other adverse consequences if
publicly disclosed.

(2) The exempt organization is required to make its exemption application form, supporting
documents, and any determination letter issued in response to the application (including a
proposed adverse determination letter) available for public inspection without charge. For more
information about the exempt organization's disclosure obligations, see Publication 557, Tax-
Exempt Status for Your Organization.

Disclosure of determination
letters under § 6110

.03 The Service is required to make any determination letter that is not disclosed under § 6104,
including adverse determinations of exempt status, available for public inspection under § 6110.
Upon issuance of the final adverse determination letter to an organization, both the proposed
adverse determination letter and the final adverse determination letter will be released pursuant to
§ 6110. In addition, determinations of advance approval of grant making procedures described in
§ 4945(g), advance approval of certain set-asides described in § 4942(g)(2), advance approval of
voter registration activities described in § 4945(f), and advance approval of an unusual grant per
Rev. Proc. 81-7, 1981-1 C.B. 621, will be released pursuant to § 6110.

The written determination and background file documents are made available to the public after
the deletion of names, addresses, and any other information that might identify the taxpayer. See
§ 6110(c) for other specific disclosure exemptions.

Taxpayer may protest
disclosure under § 6110 of
certain information in a
determination letter

.04 If the determination letter is being disclosed under § 6110, the determination letter will
enclose Notice 437, Notice of Intention to Disclose, and redacted copies of the final and proposed
adverse determination letters. Notice 437 provides procedures to follow and instructions if the
organization disagrees with the deletions proposed by the Service.

Within 20 calendar days after the Service receives the response to the Notice 437, 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 determination letter. However, these matters may be
taken up at an Appeals conference that is otherwise scheduled regarding the request, if available
under section 9 of this revenue procedure.

Taxpayer may request
delay of public inspection
under § 6110

.05 After receiving the Notice 437, 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 437. 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.

Note: Section 6110(l)(1) states that § 6110 disclosure provisions do not apply to any matter to
which § 6104 applies. Therefore, disclosure of determination letters and related background file
documents dealing with an approved application for exemption under § 501(a) as an organization

described in § 501(c) or (d), or a notice of status as a political organization under § 527 (covered
by § 6104) may not be protested or delayed by request of the taxpayer.

# Disclosure to State officials when the Service refuses to recognize exemption under § 501(c)(3)

.06 The Service may notify the appropriate State officials of a refusal to recognize an
organization as tax-exempt under § 501(c)(3). See § 6104(c). The notice to the State officials may
include a copy of a proposed or final adverse determination letter the Service issued to the
organization. In addition, upon request by the appropriate State official, the Service may make
available for inspection and copying the exemption application and other information relating to
the Service's determination on exempt status.

The Service does not consider the non-acceptance of an application under section 4.10 to be a
refusal to recognize an organization as tax-exempt.

Disclosure to State officials
of information about
§ 501(c)(3) applicants

.07 The Service may disclose to State officials the name, address, and identification number of
any organization that has applied for recognition of exemption under § 501(c)(3). The Service
does not consider an organization the application of which is not accepted under section 4.10 to
have applied for recognition of exemption.

## SECTION 14. WHAT ARE THE USER FEE REQUIREMENTS FOR DETERMINATION LETTERS?

### Legislation authorizing user fees

.01 Section 7528 of the Code directs the Secretary of the Treasury or delegate (Secretary) to
establish a program requiring the payment of user fees for requests to the Service for determi-
nation letters and similar requests.

The fees charged under the program: (1) are to vary according to categories or subcategories
established by the Secretary; (2) are to be determined after taking into account the average time
for, and difficulty of, complying with requests in each category and subcategory; and (3) are
payable in advance.

Section 7528(b)(2) directs the Secretary 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 § 7528(b)(3).

### Requests to which user fees apply

.02 In general, user fees apply to all requests for determination letters described in this revenue
procedure.

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 in limited circumstances as set forth in section 14.09 of this revenue procedure.

Requests and other actions
to which user fees do not
apply

.03 Actions which do not require the payment of a user fee include the following:

(1) Elections pertaining to automatic extensions of time under § 301.9100-1 of the Procedure
and Administration regulations; and

(2) Confirmation of exemption (affirmation letter) (to replace lost exempt status letter, and to
reflect name and address changes).

### Exemption from the user fee requirements

.04 Departments, agencies, or instrumentalities of the United States that certify that they are
seeking a determination letter on behalf of a program or activity funded by federal appropriations
are exempt from the user fee requirements. The fact that a user fee is not charged under § 7528
has no bearing on whether an applicant is treated as an agency or instrumentality of the United
States for purposes of any other provision of the Code.

In addition, Canadian registered charities do not pay a user fee. See Appendix A.

### Requests involving multiple fee categories, issues, or entities

.05

(1) Requests involving several fee categories. Requests submitted as part of an initial
application (e.g., foundation classification; exemption from Form 990 filing requirements) are
considered part of the initial application and aren't subject to an additional user fee.

(2) Multiple requests on a single Form 8940. A separate Form 8940 and user fee are generally
required for each type of request for which an organization has checked a box on Form 8940.
However, the following scenarios are considered a single request:

(a) A request for reclassification as a public charity under § 509(a)(3) that checks boxes f and
g of Form 8940; or

(b) A request for advance approval of grant making procedures for a program described in both
§ 4945(g)(1) and (3) is considered a single request.

(3) Requests for separate determination letters for several entities. Each entity involved in
a request that desires a separate determination letter in its own name (for example, subordinate
organizations seeking change of filing requirements) must pay a separate fee. Payment of a
separate fee is required regardless of whether the requests may be viewed as related.

Method of payment

.06

(1) Payment of user fees for applications of recognition of exemption on Form 1023-EZ.
User fees for applications for recognition of exemption on Form 1023-EZ must be paid through
www.pay.gov.

(2) Payment of user fees for all other requests. Except as provided in section 14.06(1), each
request to the Service for a determination letter must be accompanied by a check, payable to the
United States Treasury, in the appropriate amount. Taxpayers should not send cash.

The check may be converted to an electronic fund transfer. "Electronic fund transfer" is the
term used to refer to the process in which the Service electronically instructs the financial
institution holding the funds to transfer funds from the account named on the check to the U.S.
Treasury account, rather than processing the check. By sending a completed, signed check to the
Service, the Service is authorized to copy the check and to use the account information from the
check to make an electronic fund transfer from the account for the same amount as the check. If

the electronic fund transfer cannot be processed for technical reasons, the Service is authorized
to process the copy of the check.

.07 Form 8718 is intended to be used as an attachment to applications other than Form 1023
or Form 1023-EZ. Space is reserved for the attachment of the applicable user fee check.

### Transmittal forms

### Effect of nonpayment or payment of incorrect amount

.08 It will be the general practice of the Service that:

(1) An application for a determination letter containing the correct user fee will generally be
accepted for processing even if Form 8718 was not attached.

(2) If a check is for more than the correct amount, the submission will be accepted for
processing and the amount of the excess payment will be returned to the requester.

(3) If a check is for less than the correct amount or no check is received, the submission will
not be accepted for processing and any user fee that was paid with the request will be returned
or refunded. See section 4.10 of this revenue procedure.

### Refunds of user fees

.09 In general, the user fee will not be refunded unless the Service does not accept the request
for processing or declines to make a determination on all issues for which a determination letter
is requested.

(1) Examples in which the user fee will not be refunded:

(a) The request for a determination letter is withdrawn at any time subsequent to its receipt by
the Service. For example, no fee will be refunded where the taxpayer has been advised that an
adverse ruling is contemplated and the taxpayer subsequently withdraws its submission.

(b) A determination letter is revoked in whole or in part. The fee paid at the time the original
determination letter was requested will not be refunded.

(c) 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.

(2) The following situations are examples in which the user fee will be refunded:

(a) The request is not accepted for processing under section 4.10 of this revenue procedure.

(b) The Service declines to rule on the request in accordance with section 3.02 of this revenue
procedure.

### Request for reconsideration of user fee

.10 A taxpayer that believes the user fee charged by the Service for its request for a
determination letter 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 Internal Revenue
Service at the applicable Post Office Box or other address given in section 15 of 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 "Manager, EO Determinations
Quality Assurance."

SECTION 15. MAILING
ADDRESS FOR
REQUESTING
DETERMINATION
LETTERS

.01

(1) The following types of requests and applications handled by the EO Determinations Office
should be sent to the Internal Revenue Service Center in Covington, Kentucky, at the address in
section 15.01(2):

(a) applications for recognition of tax exemption on Form 1023, Form 1024, and Form 1028;

(b) requests for determination letters submitted on Form 8940; and

(2) The address is:

Internal Revenue Service

Attention: EO Determination Letters
Stop 31
P.O. Box 12192
Covington, KY 41012-0192

.02 Applications for recognition of exemption on Form 1023-EZ are handled by the EO
Determinations Office, but must be submitted electronically online at www.pay.gov. Paper
submissions of Form 1023-EZ will not be accepted.

.03 Determinations and requests not subject to a user fee should be sent to the Internal Revenue
Service at the address shown below:

Internal Revenue Service
P.O. Box 2508
Rm. 4024
Cincinnati, OH 45201

.04 Requests shipped by Express Mail or a delivery service for all of the above should be sent
to:

Internal Revenue Service

Attention: EO Determination Letters
Stop 31
201 West Rivercenter Boulevard
Covington, KY 41011

# SECTION 16. EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS

## SECTION 17. EFFECTIVE DATE

## SECTION 18. PAPERWORK REDUCTION ACT

Rev. Proc. 2017-5 is superseded.

This Revenue Procedure is effective January 2, 2018.

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

The collection of information on Forms 1023 and 1023-EZ have been reviewed and approved
under control number 1545-0056. The collection of information on Form 1024 has been reviewed
and approved under control number 1545-0057. The collection of information on Form 1028 has
been reviewed and approved under control number 1545-0058. The collection of information on
these forms is required if an organization wants to be recognized as tax-exempt by the Service.
The Service needs the information to determine whether the organization meets the legal
requirements for tax-exempt status.

The collection of information for Form 8940 has been approved and reviewed under control
number 1545-2211. This information is required to evaluate and process the request for a
determination letter.

The collection of information on Form 2848 has been reviewed and approved under control
number 1545-0150. It is used to authorize someone to act for the respondent in tax matters. It
grants all powers that the taxpayer has except signing a return and cashing refund checks. Data
is used to identify representatives and to ensure that confidential information is not divulged to
unauthorized persons.

The collection of information on Form 8718 has been reviewed and approved under control
number 1545-1798. The Omnibus Reconciliation Act of 1990 requires payment of a "user fee"
with each application for an exempt organization determination letter. Because of this require-
ment, the Form 8718 was created to provide filers the means to enclose their payment and indicate
what type of request they are making.

The collections of information are voluntary, to obtain a benefit. The likely respondents are
tax-exempt organizations and their authorized representatives.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection
of information unless the collection of information displays a valid OMB number.

Books and records relating to the collection of information must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally, tax
returns and tax return information are confidential, as required by § 6103.

The principal author of this Revenue Procedure is La Vonne Fischer of the Office of Associate
Chief Counsel (Tax Exempt and Government Entities). For additional information, please contact
Ms. Fischer at 202-317-5800.

## APPENDIX A Schedule of User Fees

This table summarizes the various types of Exempt Organization determination letter user fees.

ISSUE

USER FEE

(1) Application for recognition of exemption under § 501(c)(3) submitted on Form 1023-EZ

$275

(2) Applications for recognition of exemption under § 501 not included in (1) or under § 521 from organizations (other than pension, profit-sharing, and stock bonus plans described in § 401). (3) Group exemption letters Note: An additional user fee under (1), (2), or (3), above is also required when a cen- tral organization submits an initial application for exemption with its request for a group exemption letter.

$600 $2,000

(4) Canadian registered charities Note: In accordance with the income tax treaty between the United States and Can- ada, Canadian registered charities are automatically recognized as exempt under § 501(c)(3) without filing an application for exemption. For details, see Notice 99-47, 1999-2 C.B. 391. Therefore, no user fee is required when a Canadian registered char- ity submits all or part of a Form 1023 or other written request to be listed in Exempt Organizations Select Check database for organizations eligible to receive tax- deductible charitable contributions (Pub. 78 data), or for a determination on its private foundation status.

None

(5) Affirmation Letter - Confirmation of exemption (to replace lost exempt status letter, and to reflect name and address changes)

None

(6) Reclassification of private foundation status, including

$400

· operating foundation status described in § 4942(j)(3) and exempt operating foundation status described in § 4940(d); · a determination that a public charity is described in § 509(a)(3)(i), (ii), or (iii), including whether or not a Type III supporting organization is functionally integrated; · reclassification of foundation status, including voluntary requests from public charities for private foundation status and voluntary requests from public charities, including re- quests from subordinate organizations, to change from one public charity status to an- other public charity status; or · final public charity classification determination for organizations whose advance ruling periods expired prior to June 9, 2008 without providing the required information (Form 8940).

(7) Regulations § 301.9100 relief in connection with applications for recognition of exemption

None

(8) Section 507 terminations - advance or final ruling under § 507(b)(1)(B) (Form 8940)

$400

(9) Section 4942(g)(2) set asides - advance approval (Form 8940)

$1,000

(10) Section 4945 advance approval of organization's grant making procedures (Form 8940)

$1,000

(11) Section 4945(f) advance approval of voter registration activities (Form 8940)

$1,000

(12) Section 6033 annual information return filing requirements (including a subordinate organization's change of filing requirements) (Form 8940)

$400

(13) Unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and 509(a)(2) (Form 8940)

$400

(14) User Fee for determination letters under the jurisdiction of the Determinations Office not other-

$400

wise described or covered in this Appendix.

# APPENDIX B Authorized Representatives

To sign a request for a determination letter 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, pos- session, territory, commonwealth, or the District of Columbia and who is not currently under suspen- sion or disbarment from practice before the Service. He or she must file a written declaration with the Service on Form 2848 showing current qualification as an attorney and current authorization to repre- sent the taxpayer.

Certified public accountant

(b) A certified public accountant who is qualified to practice in any state, possession, territory, com- monwealth, 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 on Form 2848 showing current qualification as a certified public accountant and current authorization to represent the taxpayer.

Enrolled agent

(c) An enrolled agent, 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 be- fore the Service, including a person enrolled to practice only for employee plans matters. He or she must file a written declaration with the Service on Form 2848 showing current enrollment and autho- rization to represent the taxpayer. Either the enrollment number or the expiration date of the enroll- ment card must be included in the declaration. For the rules on who may practice before the Service, see Treasury Department Circular No. 230.

A person with a "Letter of Authorization"

(d) Any other person, including a foreign representative, who has received a "Letter of Authorization" from the Director, Office of Professional Responsibility under section 10.7(d) of Treasury Department Circular No. 230. He or she must file a written declaration with the Service on Form 2848 (or equiva- lent power of attorney and declaration of representative) showing authorization to represent the tax- payer with a copy of the "Letter of Authorization" attached. A person may make a written request for a "Letter of Authorization" to: Director, Office of Profes- sional Responsibility, Internal Revenue Service, 1111 Constitution Avenue N.W., Washington, DC 20224. Circular No. 230 section 10.7(d) ("Special appearances") authorizes the Commissioner, or del- egate, 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, administra- tor, trustee, etc. Foreign representative

(e) A regular full-time employee representing his or her employer, a general partner representing his or her partnership, a bona fide officer representing his or her corporation, association, or organized group, a trustee, receiver, guardian, personal representative, administrator, or executor representing a trust, receivership, guardianship, or estate, or an individual representing his or her immediate family. He or she may be required to file a written declaration with the Service on Form 2848 showing au- thorization to represent the taxpayer. See Form 2848 for more information. A preparer of a return (other than a person referred to in paragraph (a), (b), or (c) of this Appendix B) who is not a full-time employee, general partner, a bona fide officer, an administrator, trustee, etc., or an individual repre- senting his or her immediate family may not represent a taxpayer in connection with a determination letter or a technical advice request. See section 10.7(c) of Treasury Department Circular No. 230. (f) A foreign representative (other than a person referred to in paragraph (a), (b), or (c) of this Appen- dix B) is not authorized to practice before the Service and, therefore, must withdraw from represent- ing a taxpayer in a request for a determination letter. In this situation, the nonresident alien or foreign entity must submit the request for a determination letter on the individual's or entity's own behalf or through a person referred to in paragraph (a), (b), or (c) of this Appendix B.

26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2018-7

## SECTION 1. PURPOSE AND NATURE OF CHANGES

### .01 Purpose

This revenue procedure updates Rev.
Proc. 2017-7, 2017-1 I.R.B. 269, by pro-
viding a current list of those areas of the
Internal Revenue Code under the jurisdic-
tion of the Associate Chief Counsel (In-
ternational) relating to matters on which
the Internal Revenue Service will not is-
sue letter rulings or determination letters.

### .02 Changes

A new section 4.01(26) has been added
related to section 1059A. There are no
other changes except renumbering to re-
flect the foregoing and updates to cross
references and citations.

## SECTION 2. BACKGROUND AND SCOPE OF APPLICATION

### .01 Background

In the interest of sound tax administra-
tion, the Service answers inquiries from
individuals and organizations regarding
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 Ser-
vice will not issue letter rulings or deter-
mination letters, either because the issues
are inherently factual or for other reasons.
These areas are set forth in sections 3 and
4 of this revenue procedure.

Section 3 lists areas in which letter
rulings and determination letters will not
be issued under any circumstances.

Section 4 lists areas in which they will
not ordinarily be issued; in these areas,
unique and compelling reasons may jus-
tify 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 (International)
(hereinafter "the Office") prior to making
such request and discuss with the Office
the unique and compelling reasons that
the taxpayer believes justify issuing such

letter ruling or determination letter. While
not required, a written submission is en-
couraged since it will enable Office per-
sonnel to arrive more quickly at an under-
standing 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 pro-
vide a general information letter in re-
sponse 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 pe-
culiar to that case, and such decision will
not be announced in the Internal Revenue
Bulletin. See Rev. Proc. 2018-1, Section
6.02.

### .02 Scope of Application

This revenue procedure does not pre-
clude the submission of requests for tech-
nical advice to the Office from other of-
fices of the Service.

## SECTION 3. AREAS IN WHICH RULING OR DETERMINATION LETTERS WILL NOT BE ISSUED

## .01 Specific Questions and Problems

(1) Section 861 .- Income from
Sources Within the United States .- A
method for determining the source of a
pension payment to a nonresident alien
individual from a trust under a defined
benefit plan that is qualified under
§ 401(a) if the proposed method is incon-
sistent with §§ 4.01, 4.02, and 4.03 of
Rev. Proc. 2004-37, 2004-1 C.B. 1099.

(2) Section 862 .- Income from
Sources Without the United States .- A
method for determining the source of a
pension payment to a nonresident alien
individual from a trust under a defined
benefit plan that is qualified under
§ 401(a) if the proposed method is incon-
sistent with §§ 4.01, 4.02, and 4.03 of
Rev. Proc. 2004-37, 2004-1 C.B. 1099.

(3) Section 871(g) .- Special Rules for
Original Issue Discount .- Whether a debt
instrument having original issue discount
within the meaning of § 1273 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).

(4) Section 894 .- Income Affected by
Treaty .- Whether a person that is a resi-
dent of a foreign country and derives in-
come from the United States is entitled to
benefits under the United States income
tax treaty with that foreign country pursu-
ant to the limitation on benefits article.
However, the Service may rule regarding
the legal interpretation of a particular pro-
vision within the relevant limitation on
benefits article.

(5) Section 954 .- Foreign Base Com-
pany Income .- The effective rate of tax
that a foreign country will impose on in-
come.

(6) Section 954. - Foreign Base Com-
pany Income .- Whether the facts and cir-
cumstances evince that a controlled foreign
corporation makes a substantial contribution
through the activities of its employees to the
manufacture, production, or construction of
the personal property sold within the mean-
ing of § 1.954-3(a)(4)(iv).

(7) Section 7701(b) .- Definition of
Resident Alien and Nonresident Alien .-
Whether an alien individual is a nonresi-
dent of the United States, including
whether the individual has met the re-
quirements of the substantial presence test
or exceptions to the substantial presence
test. However, the Service may rule re-
garding the legal interpretation of a par-
ticular provision of § 7701(b) or the reg-
ulations thereunder.

## .02 General Areas.

(1) The prospective application of the
estate tax to the property or the estate of a
living person, except that rulings may be
issued on any international issues in a
ruling request accepted pursuant to § 5.06
of Rev. Proc. 2018-1, in this Bulletin.

(2) Whether reasonable cause exists
under Subtitle F (Procedure and Adminis-
tration) of the Code.

(3) Whether a proposed transaction
would subject a taxpayer to criminal pen-
alties.

(4) Any area where the ruling request
does not comply with the requirements of
Rev. Proc. 2018-1.

(5) Any area where the same issue is
the subject of the taxpayer's pending re-
quest for competent authority assistance
under a United States tax treaty.

(6) A "comfort" ruling will not be is-
sued with respect to an issue that is clearly

and adequately addressed by statute, reg-
ulations, decisions of a court, tax treaties,
revenue rulings, or revenue procedures
absent extraordinary circumstances (e.g.,
a request for a ruling required by a gov-
ernmental regulatory authority in order to
effectuate the transaction).

(7) Any frivolous issue, as that term is
defined in § 6.10 of Rev. Proc. 2018-1.

SECTION 4. AREAS IN WHICH
RULING OR DETERMINATION
LETTERS WILL NOT ORDINARILY
BE ISSUED

## .01 Specific Questions and 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 fac-
tual inquiry.

(2) Section 367(a) .- Transfers of Prop-
erty from the United States .- Whether a
transferred corporation subject to a gain rec-
ognition agreement under § 1.367(a)-8 has
disposed of substantially all of its assets.

(3) Section 367(b) .- Other Trans-
fers .- Whether and the extent to which
regulations under § 367(b) apply to an
exchange involving foreign corporations,
unless the ruling request presents a signif-
icant legal issue or subchapter C rulings
are requested in the context of the ex-
change.

(4) Section 864 .- Definitions and Spe-
cial Rules .- Whether a taxpayer is en-
gaged in a trade or business within the
United States, and whether income is ef-
fectively connected with the conduct 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 tax-
payer 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 com-
modity is of a kind customarily dealt in on
an organized commodity exchange, and
whether a transaction is of a kind custom-
arily consummated at such place.

(5) Section 871 .- Tax on Nonresident
Alien Individuals .- Whether a payment
constitutes portfolio interest under § 871(h);
whether an obligation qualifies for any of
the components of portfolio interest such as
being in registered form; and whether the
income earned on contracts that do not qual-
ify 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).

(6) Section 881 .- Tax on Income of
Foreign Corporations Not Connected with
United States Business .- Whether the in-
come earned on contracts that do not qual-
ify as annuities or life insurance contracts
because of the limitations imposed by
§ 72(s) and § 7702(a) is portfolio interest
as defined in § 881(c).

(7) Section 892 .- Income of Foreign
Governments and of International Organi-
zations .- Whether income derived by for-
eign governments and international orga-
nizations from sources within the United
States is excluded from gross income and
exempt from taxation and any underlying
issue related to that determination.

(8) Section 893 .- Compensation of
Employees of Foreign Governments and
International Organizations .- Whether
wages, fees, or salary of an employee of a
foreign government or of an international
organization received as compensation for
official services to such government or
international organization is excluded
from gross income and exempt from tax-
ation and any underlying issue related to
that determination.

(9) Section 894 .- Income Affected by
Treaty .- Whether the income received by
an individual in respect of services ren-
dered to a foreign government or a polit-
ical subdivision or a local authority
thereof is exempt from federal income tax
or withholding under any of the United
States income tax treaties which contain
provisions applicable to such individuals.

(10) Section 894 .- Income Affected
by Treaty .- Whether a taxpayer has a per-
manent establishment in the United States
for purposes of any United States income
tax treaty and whether income is attribut-
able to a permanent establishment in the
United States.

(11) Section 894 .- Income Affected
by Treaty .- Whether certain persons will
be considered liable to tax under the laws

of a foreign country for purposes of de-
termining if such persons are residents
within the meaning of any United States
income tax treaty. But see Rev. Rul.
2000-59, 2000-2 C.B. 593.

(12) Section 894 .- Income Affected
by Treaty .- Whether the income received
by a nonresident alien student or trainee
for services performed for a university or
other educational institution is exempt
from federal income tax or withholding
under any of the United States income tax
treaties which contain provisions applica-
ble to such nonresident alien students or
trainees.

(13) Section 894 .- Income Affected
by Treaty .- Whether the income received
by a nonresident alien performing re-
search or teaching as personal services for
a university, hospital or other research
institution is exempt from federal income
tax or withholding under any of the
United States income tax treaties which
contain provisions applicable to such non-
resident alien teachers or researchers.

(14) Section 894 .- Income Affected
by Treaty .- Whether a foreign recipient
of payments made by a United States per-
son is ineligible to receive the benefits of
a United States tax treaty under the prin-
ciples of Rev. Rul. 89-110, 1989-2 C.B.
275.

(15) Section 894 .- Income Affected
by Treaty .- Whether a recipient of pay-
ments is or has been a resident of a coun-
try for purposes of any United States tax
treaty. Pursuant to § 1.884-5(f), however,
the Service may rule whether a corpora-
tion representing that it is a resident of a
country is a qualified resident thereof for
purposes of § 884.

(16) Section 894 .- Income Affected
by Treaty .- Whether an entity is treated
as fiscally transparent by a foreign juris-
diction for purposes of § 894(c) and the
regulations thereunder.

(17) Section 901 .- Taxes of Foreign
Countries and of Possessions of United
States .- Whether a foreign levy meets the
requirements of a creditable tax under
§ 901.

(18) Section 901 .- Taxes of Foreign
Countries and of Possessions of 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 eco-
nomic benefit. See § 1.901-2A(c)(2).

(19) Section 903 .- Credit for Taxes in
Lieu of Income, Etc., Taxes .- Whether a
foreign levy meets the requirements of a
creditable tax under § 903.

(20) Sections 954(d), 993(c) .- Manu-
factured Product .- Whether a product is
manufactured or produced for purposes of
§ 954(d) and § 993(c).

(21) Section 937 .- Definition of Bona
Fide Resident .- Whether an individual is
a bona fide resident of American Samoa,
Guam, the Northern Mariana Islands,
Puerto Rico, or the U.S. Virgin Islands.
However, the Service may rule regarding
the legal interpretation of a particular pro-
vision of § 937(a) or the regulations there-
under.

(22) Section 956 .- Investment of
Earnings in United States Property .-
Whether a pledge of the stock of a con-
trolled foreign corporation is an indirect
pledge of the assets of that corporation.
See § 1.956-2(c)(2).

(23) Section 985 .- Functional Curren-
cy .- Whether a currency is the functional
currency of a qualified business unit.

(24) Section 989(a) .- Qualified Busi-
ness Unit .- Whether a unit of the taxpay-
er's trade or business is a qualified busi-
ness unit.

(25) Section 1058 .- Transfers of Secu-
rities Under Certain Agreements .-
Whether the amount of any payment de-
scribed 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 consti-
tute a particular kind of income for pur-
poses of any United States income tax
treaty.

(26) Section 1059A .- Limitation on
taxpayer's basis or inventory cost in prop-
erty imported from related persons .-
Whether a taxpayer's cost or inventory
basis in property imported from a foreign
affiliate will not be limited by § 1059A
due to differences between customs valu-
ation and tax valuation.

(27) Sections 1471, 1472, 1473, and
1474 .- Taxes to Enforce Reporting on
Certain Foreign Accounts .- Whether a
taxpayer, withholding agent, or intermedi-

ary has properly applied the requirements
of chapter 4 of the Internal Revenue Code
(sections 1471 through 1474, also known
as "FATCA") or of an applicable inter-
governmental agreement to implement
FATCA.

(28) Section 1503(d) .- Dual Consoli-
dated Loss .- Whether the income tax laws
of a foreign country would deny any oppor-
tunity for the foreign use of a dual consoli-
dated loss in the year in which the dual
consolidated loss is incurred under
§ 1.1503(d)-3(e)(1); whether no possibility
of foreign use exists under § 1.1503(d)-
6(c)(1); whether an event presumptively
constitutes a triggering event under
§ 1.1503(d)-6(e)(1)(i)-(ix); whether the
presumption of a triggering event is rebutted
under § 1.1503(d)-6(e)(2); and whether a
domestic use agreement terminates under
§ 1.1503(d)-6(j)(1). The Service will also
not ordinarily rule on the corresponding pro-
visions of prior regulations under § 1503(d).

(29) Section 2501 .- Imposition of
Tax .- Whether a partnership interest is in-
tangible property for purposes of
§ 2501(a)(2) (dealing with transfers of in-
tangible property by a nonresident not a
citizen of the United States).

(30) Section 7701 .- Definitions .-
Whether an estate or trust is a foreign
estate or trust for federal income tax pur-
poses.

(31) Section 7701 .- Definitions .-
Whether an intermediate entity is a con-
duit entity under § 1.881-3(a)(4); whether
a transaction is a financing transaction un-
der § 1.881-3(a)(4)(ii); whether the par-
ticipation of an intermediate entity in a
financing arrangement is pursuant to a tax
avoidance plan under § 1.881-3(b);
whether an intermediate entity performs
significant financing activities under
§ 1.881-3(b)(3)(ii); whether an unrelated
intermediate entity would not have partic-
ipated in a financing arrangement on sub-
stantially the same terms under § 1.881-
3(c).

(32) Section 7874 .- Expatriated Enti-
ties and Their Foreign Parents .- Whether,
after the acquisition, the expanded affili-
ated group has substantial business activ-
ities in the foreign country in which, or
under the law of which, the foreign entity
is created or organized, when compared to
the total business activities of the ex-
panded affiliated group.

(33) Section 7874 .- Expatriated Enti-
ties and Their Foreign Parents .- Whether
a foreign corporation completes the direct
or indirect acquisition of substantially all
of the properties held directly or indirectly
by a domestic corporation or substantially
all of the properties constituting a trade or
business of a domestic partnership.

## .02 General Areas

(1) Whether a taxpayer has a business
purpose for a transaction or arrangement.

(2) Whether a taxpayer uses a correct
North American Industry Classification
System (NAICS) code or Standard Indus-
trial Classification (SIC) code.

(3) Any transaction or series of trans-
actions that is designed to achieve a dif-
ferent tax consequence or classification
under U.S. tax law (including tax treaties)
and the tax law of a foreign country,
where the results of that different tax con-
sequence or classification are inconsistent
with the purposes of U.S. tax law (includ-
ing tax treaties).

(4)(a) 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 tax investigations, which would
preclude the Service from obtaining infor-
mation located in such jurisdiction that is
relevant to the analysis or examination of
the tax issues involved in the ruling re-
quest.

(b) The provisions of subsection
4.02(4)(a) above shall not apply if the
taxpayer or affected related party (i) con-
sents to the disclosure of all relevant in-
formation requested by the Service in pro-
cessing the ruling request or in the course
of an examination to verify the accuracy
of the representations made and to other-
wise analyze or examine the tax issues
involved in the ruling request, and (ii)
waives all claims to protection of bank or
commercial 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 inef-
fective or of no force and effect, then the

Service may retroactively rescind any rul-
ing rendered in reliance on such consent.

(5) The federal tax consequences of
proposed federal, state, local, municipal,
or foreign legislation.

(6)(a) Situations involving the interpre-
tation of foreign law or foreign docu-
ments. The interpretation of a foreign law
or foreign document means making a
judgment about the import or effect of the
foreign law or document that goes beyond
its plain meaning.

(b) The Service, at its discretion, may
consider rulings that involve the interpre-
tation of foreign laws or foreign docu-
ments. In these cases, the Service may
request information in addition to that
listed in § 7.01(2) and (6) of Rev. Proc.
2018-1, including a discussion of the im-
plications of any authority believed to in-
terpret the foreign law or foreign docu-
ment, such as pending legislation, treaties,
court decisions, notices or administrative
decisions.

(7) The treatment or effects of hook
equity, as described in section 4.02(11) of
Rev. Proc. 2018-3, in this Bulletin.

# SECTION 5. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 2017-7 is superseded.

# SECTION 6. EFFECTIVE DATE

This revenue procedure is effective
January 2, 2018.

# SECTION 7. DRAFTING INFORMATION

This revenue procedure was compiled
by Paul S. Manning of the Office of As-
sociate Chief Counsel (International). For
further information about this revenue
procedure, please contact Mr. Manning at
(202) 317-3800 (not a toll-free number).

# Definition of Terms

Revenue rulings and revenue procedures
(hereinafter referred to as "rulings") 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 pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle 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 pub-
lished 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 amplified and clarified, above).

Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.

Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a 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 published under the 1939 Code
and regulations. 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 pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-

stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes 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 rul-
ings 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 ma-
terial published in the Bulletin.

A-Individual.

Acq .- Acquiescence.

B-Individual.

BE-Beneficiary.

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.

Ct.D .- Court Decision.

I.R.B .- Internal Revenue Bulletin.

CY-County.

LE-Lessee.

D-Decedent.

LP-Limited Partner.

LR-Lessor.

X-Corporation.

DE-Donee.

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 .- Statement 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.

DC-Dummy Corporation.

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 Contributions Act.

FISC-Foreign International Sales Company.

FPH-Foreign Personal Holding Company.

BK-Bank.

B.T.A .- Board of Tax Appeals.

C-Individual.

C.B .- Cumulative Bulletin.

CFR-Code of Federal Regulations.

CI-City.

COOP-Cooperative.

Y-Corporation.

Z-Corporation.

## Numerical Finding List1

Bulletin 2018-1

### Revenue Procedures:

2018-1, 2018-1 I.R.B. 1
2018-2, 2018-1 I.R.B. 106

2018-3, 2018-1 I.R.B. 130

2018-4, 2018-1 I.R.B. 146
2018-5, 2018-1 I.R.B. 244
2018-7, 2018-1 I.R.B. 282

1A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017-27 through 2017-52 is in Internal Revenue Bulletin
2017-52, dated December 27, 2017.

# Finding List of Current Actions on Previously Published Items1

Bulletin 2018-1

# Internal Revenue Service Washington, DC 20224

Official Business
Penalty for Private Use, $300

## INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.

### We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
(www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.
NW, IR-6230 Washington, DC 20224.

Internal Revenue Bulletin 2018-1 (PDF rendition): IRS Revenue Procedures

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