rp-02-52.pdf

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

Rev. Proc. 2002-52

SEC. 1. PURPOSE OF THE REVENUE PROCEDURE

SEC. 2. SCOPE

.01 In General

.02 Requests for Assistance

.03 Authority of the U.S. Competent Authority

.04 General Process

.05 Failure to Request Assistance

SEC. 3. GENERAL CONDITIONS UNDER WHICH THIS PROCEDURE
APPLIES

.01 General

.02 Requirements of a Treaty

.03 Applicable Standards in Allocation Cases

.04 Who Can File Requests for Assistance

.05 Closed Cases

.06 Foreign Initiated Competent Authority Request

.07 Requests Relating to Residence Issues

.08 Determinations Regarding Limitation on Benefits

SEC. 4. PROCEDURES FOR REQUESTING COMPETENT AUTHORITY
ASSISTANCE

.01 Time for Filing

.02 Place of Filing

.03 Additional Filing

.04 Form of Request

.05 Information Required

.06 Other Dispute Resolution Programs

.07 Other Documentation

.08 Updates

.09 Conferences

SEC. 5. SMALL CASE PROCEDURE FOR REQUESTING COMPETENT
AUTHORITY ASSISTANCE

.01 General

.02 Small Case Standards

.03 Small Case Filing Procedure

SEC. 6. RELIEF REQUESTED FOR FOREIGN INITIATED ADJUSTMENT
WITHOUT COMPETENT AUTHORITY INVOLVEMENT

SEC. 7. COORDINATION WITH OTHER ADMINISTRATIVE OR JUDICIAL
PROCEEDINGS

.01 Suspension of Administrative Action with Respect to U.S. Adjustments

.02 Coordination with Appeals

.03 Coordination with Litigation

.04 Coordination with Other Alternative Dispute Resolution and Pre-Filing
Procedures

.05 Effect of Agreements or Judicial Determinations on Competent Authority
Proceedings

.06 Accelerated Competent Authority Procedure

# SEC. 8. SIMULTANEOUS APPEALS PROCEDURE

.01 General

.02 Time for Requesting the Simultaneous Appeals Procedure.

(a) When Filing For Competent Authority Assistance

(b) After Filing For Competent Authority Assistance

.03 Cases Pending in Court

.04 Request for Simultaneous Appeals Procedure

.05 Role of Appeals in the Competent Authority Process

(a) Appeals Process

(b) Assistance to U.S. Competent Authority

.06 Denial or Termination of Simultaneous Appeals Procedure

(a) Taxpayer s Termination

(b) Service s Denial or Termination

.07 Returning to Appeals

.08 Appeals Consideration of Non-Competent Authority Issues

SEC. 9. PROTECTIVE MEASURES

.01 General

.02 Filing a Protective Claim for Credit or Refund with a Competent Authority
Request

(a) In General

(b) Treatment of Competent Authority Request as Protective Claim

.03 Protective Filing Before Competent Authority Request

(a) In General

(b) Letter to Competent Authority Treated as Protective Claim

(d) No Consultation between Competent Authorities until Formal Request is
Filed

.04 Effect of a Protective Claim

.05 Treaty Provisions Waiving Procedural Barriers

SEC. 10. APPLICATION OF REV. PROC. 99-32

SEC. 11. DETERMINATION OF CREDITABLE FOREIGN TAXES

SEC. 12. ACTION BY U.S. COMPETENT AUTHORITY

.01 Notification of Taxpayer

.02 Denial of Assistance

.03 Extending Period of Limitations for Assessment

.04 No Review of Denial of Request for Assistance

.05 Notification

.06 Closing Agreement

.07 Unilateral Withdrawal or Reduction of U.S. Initiated Adjustments

SEC. 13. REQUESTS FOR RULINGS

.01 General

.02 Foreign Tax Rulings

SEC. 14. FEES

SEC. 15. EFFECT ON OTHER DOCUMENTS

SEC. 16. EFFECTIVE DATE

DRAFTING INFORMATION

## SECTION 1. PURPOSE OF THE REVENUE PROCEDURE

This revenue procedure explains the procedures by which taxpayers may
obtain assistance from the U.S. competent authority under the provisions of an
income, estate or gift tax treaty to which the United States is a party. This
revenue procedure supercedes Rev. Proc. 96-13, 1996-1 C.B. 616.

### SEC. 2. SCOPE

.01 In General. The U.S. competent authority assists taxpayers with respect to
matters covered in the mutual agreement procedure provisions of tax treaties in
the manner specified in those provisions. A tax treaty generally permits
taxpayers to request competent authority assistance when they consider that
actions of the United States, the treaty country, or both, result or will result in
taxation that is contrary to the provisions of a treaty. For example, tax treaties
generally permit taxpayers to request assistance in order to relieve economic
double taxation arising from an allocation under section 482 of the Internal
Revenue Code (the Code ) or an equivalent provision under the laws of a treaty
country. Competent authority assistance may also be available with respect to
issues specifically dealt with in other provisions of a treaty. For example, many
tax treaties contain provisions permitting competent authorities to resolve issues
of fiscal residence or allowing a competent authority to make a discretionary
determination that a taxpayer is entitled to the benefits of a treaty under specific
limitation on benefits provisions. See sections 3.07 and 3.08 of this revenue
procedure. Taxpayers are urged to examine the mutual agreement procedure
provisions or other specific provisions of the treaty under which they seek relief,
in order to determine whether relief may be available in their particular case. This
revenue procedure is not intended to limit or expand any specific treaty
provisions relating to competent authority matters.

.02 Requests for Assistance. In general, requests by taxpayers for competent
authority assistance must be submitted in accordance with this revenue
procedure. However, where a treaty or other published administrative guidance
provides specific procedures for requests for competent authority assistance,
those procedures shall apply, and the provisions of this revenue procedure shall
not apply to the extent inconsistent with such procedures.

.03 Authority of the U.S. Competent Authority. The Director, International acts
as the U.S. competent authority in administering the operating provisions of tax
treaties (including reaching a mutual agreement in a specific case) and in
interpreting and applying these treaties. In interpreting and applying tax treaties,
the Director, International acts only with the concurrence of the Associate Chief
Counsel (International). See Delegation Order No. 114 (Rev. 13).

.04 General Process. If a taxpayer s request for competent authority assistance
is accepted, the U.S. competent authority generally will consult with the
appropriate foreign competent authority and attempt to reach a mutual
agreement that is acceptable to all parties. The U.S. competent authority also
may initiate competent authority negotiations in any situation deemed necessary
to protect U.S. interests. Such a situation may arise, for example, when a
taxpayer fails to request competent authority assistance after agreeing to a U.S.
or foreign tax assessment that is contrary to the provisions of an applicable tax
treaty or for which correlative relief may be available.

.05 Failure to Request Assistance. Failure to request competent authority
assistance or to take appropriate steps as necessary to maintain availability of
the remedy may cause a denial of part or all of any foreign tax credits claimed.
See 1.901-2(e)(5)(i) of the Income Tax Regulations. See also section 9 of this
revenue procedure concerning protective measures and section 11 of this
revenue procedure concerning the determination of creditable foreign taxes.

SEC. 3. GENERAL CONDITIONS UNDER WHICH THIS PROCEDURE
APPLIES

.01 General. The exclusions, exemptions, deductions, credits, reductions in
rate, and other benefits and safeguards provided by treaties are subject to
conditions and restrictions that may vary in different treaties. Taxpayers should
examine carefully the specific treaty provisions applicable in their cases to
determine the nature and extent of treaty benefits or safeguards they are entitled
to and the conditions under which such benefits or safeguards are available. See
section 9 of this revenue procedure, which prescribes protective measures to be
taken by the taxpayer and any concerned related person with respect to U.S.
and foreign tax authorities. See also section 12.02 of this revenue procedure for
circumstances in which competent authority assistance may be denied.

.02 Requirements of a Treaty. There is no authority for the U.S. competent
authority to provide relief from U.S. tax or to provide other assistance due to
taxation arising under the tax laws of the foreign country or the United States,
unless such authority is granted by a treaty. See also Rev. Proc. 89-8, 1989-1
C.B. 778, for procedures for requesting the assistance of the Internal Revenue
Service ( the Service ) when a taxpayer is or may be subject to inconsistent tax
treatment by the Service and a U.S. possession tax agency.

.03 Applicable Standards in Allocation Cases. With respect to requests for
competent authority assistance involving the allocation of income and deductions
between a U.S. taxpayer and a related person, the U.S. competent authority and
its counterpart in the other treaty country will be bound by the arm s length

standard provided by the applicable provisions of the relevant treaty. The U.S.
competent authority also will be guided by the arm s length standard consistent
with the regulations under section 482 of the Code and the OECD Transfer
Pricing Guidelines for Multinational Enterprises and Tax Administrations. When
negotiating mutual agreements on the allocation of income and deductions, the
U.S. competent authority will take into account all of the facts and circumstances
of the particular case and the purpose of the treaty to avoid double taxation.

.04 Who Can File Requests for Assistance. Unless otherwise permitted under
an applicable tax treaty, the U.S. competent authority will only consider requests
for assistance from U.S. persons, as defined in section 7701(a)(30) of the Code.
For purposes of this revenue procedure, a U.S. person is referred to as the
taxpayer. Thus, non-U.S. persons generally must present their initial request for
assistance to the relevant foreign competent authority. As noted in Sec. 12.02 of
this revenue procedure, there are circumstances in which the U.S. competent
authority will not pursue assistance.

.05 Closed Cases. A case previously closed after examination shall not be
reopened in order to make an adjustment unfavorable to the taxpayer unless the
exceptional circumstances described in Rev. Proc. 94-68, 1994-2 C.B. 803, are
present. The U.S. competent authority may, but is not required to, accept a
taxpayer s request for competent authority consideration that will require the
reopening of a case closed after examination.

.06 Foreign Initiated Competent Authority Request. When a foreign competent
authority refers a request from a foreign taxpayer to the U.S. competent authority
for consultation under the mutual agreement procedure, the U.S. competent
authority generally will require the U.S. related taxpayer (in the case of an
allocation of income or deductions between related persons) or may require the
foreign taxpayer (in other cases) to file a request for competent authority
assistance under this revenue procedure.

.07 Requests Relating to Residence Issues. U.S. competent authority
assistance may be available to taxpayers seeking to clarify their residency status
in the United States. Examples include cases in which taxpayers believe that
they are erroneously treated as non-U.S. residents by treaty countries or cases
where taxpayers are treated as dual residents despite the objective tie-breaker
provisions contained in the applicable treaties. Generally, competent authority
assistance is limited to situations where resolution of a residency issue is
necessary in order to avoid double taxation or to determine the applicability of a
benefit under the treaty. Further, a request for assistance regarding a residency
issue will be accepted only if it is established that the issue requires consultation
with the foreign competent authority in order to ensure consistent treatment by
the United States and the applicable treaty country. The U.S. competent

authority does not issue unilateral determinations with respect to whether an
individual is a resident of the United States or of a treaty country.

.08 Determinations Regarding Limitation on Benefits. Many treaties contain a
limitation on benefits article that enumerates prescribed requirements that must
be met to qualify as a resident that may be eligible for benefits under the treaty.
The U.S. competent authority will not issue determinations regarding a
taxpayer s status under one of the prescribed requirements in a limitation on
benefits provision. However, certain treaties provide that the competent authority
may, as a matter of discretion, determine the availability of treaty benefits where
the prescribed requirements are not met. See, e.g., Article 22(4) of the U.S .-
South Africa income tax treaty. Requests for assistance in such cases should
comply with this revenue procedure and any other specific procedures that may
be issued from time to time. Taxpayers who are requesting a discretionary
determination under a limitation on benefits provision should include the
information described in exhibit 4.60.3-3 of the Internal Revenue Manual ("IRM"),
Part 4 Examining Process, Chapter 60 International Procedure, Section 3 Tax
Treaty Related Matters (IRM 4.60.3).

#### SEC. 4. PROCEDURES FOR REQUESTING COMPETENT AUTHORITY ASSISTANCE

.01 Time for Filing. A request for competent authority assistance generally may
be filed at any time after an action results in taxation not in accordance with the
provisions of the applicable treaty. In a case involving a U.S. initiated adjustment
of tax or income resulting from a tax examination, a request for competent
authority assistance may be submitted as soon as practicable after the amount
of the proposed adjustment is communicated in writing to the taxpayer. Where a
U.S. initiated adjustment has not yet been communicated in writing (e.g., a notice
of proposed adjustment) to the taxpayer, the U.S. competent authority generally
will deny the request as premature. In the case of a foreign examination, a
request may be submitted as soon as the taxpayer believes such filing is
warranted based on the actions of the country proposing the adjustment. In a
case involving the re-allocation of income or deductions between related entities,
the request should not be filed until such time that the taxpayer can establish
that there is the probability of double taxation. See section 9 of this revenue
procedure, which explains protective measures to be taken by the taxpayer and
any concerned related person with respect to U.S. and foreign tax authorities. In
cases not involving an examination, a request can be made when the taxpayer
believes that an action or potential action warrants the assistance of the U.S.
competent authority. Examples of such action include a ruling or promulgation by
a foreign tax authority concerning a taxation matter, or the withholding of tax by a
withholding agent. Except where otherwise provided in an applicable treaty,
taxpayers have discretion over the time for filing a request; however, delays in
filing may preclude effective relief. See section 9 of this revenue procedure

concerning protective measures for taxpayers that need or wish to delay the
filing of a request for assistance. See also section 7.06 of this revenue procedure
for rules relating to accelerated issue resolution and competent authority
assistance.

.02 Place of Filing. The taxpayer must send all written requests for, or any
inquiries regarding, competent authority assistance to the Director, International
Attn: Office of Tax Treaty, Internal Revenue Service, 1111 Constitution Avenue,
NW, Washington, D.C. 20224.

.03 Additional Filing. In the case of U.S. initiated adjustments, the taxpayer also
must file a copy of the request with the office of the Service where the
taxpayer s case is pending. If the request is filed after the matter has been
designated for litigation or while a suit contesting the relevant tax liability of the
taxpayer is pending in a U.S. court, a copy of the request also must be filed with
the Associate Chief Counsel (International), Internal Revenue Service, 1111
Constitution Avenue N.W., Washington, D.C. 20224, with a separate statement
attached identifying the court where the suit is pending and the docket number of
the action.

.04 Form of Request. A request for competent authority assistance must be in
the form of a letter addressed to the Director, International. It must be dated and
signed by a person having the authority to sign the taxpayer s federal tax
returns. The request must contain a statement that competent authority
assistance is being requested and must include the information described in
section 4.05 of this revenue procedure. See section 5 of this revenue procedure
for requests involving small cases.

.05 Information Required. The following information shall be included in the
request for competent authority assistance:

(a) a reference to the specific treaty and the provisions therein pursuant to
which the request is made;

(b) the names, addresses, U.S. taxpayer identification number and foreign
taxpayer identification number (if any) of the taxpayer and, if applicable, all
related persons involved in the matter;

(c) if applicable, a description of the control and business relationships between
the taxpayer and any relevant related person for the years in issue, including any
changes in such relationship to the date of filing the request;

(d) a brief description of the issues for which competent authority assistance is
requested, including a brief description of the relevant transactions, activities or

other circumstances involved in the issues raised and the basis for the
adjustment, if any;

(e) the years and amounts involved with respect to the issues in both U.S.
dollars and foreign currency;

(f) the IRS office which has made or is proposing to make the adjustment or
has examination jurisdiction over the taxpayer;

(g) an explanation of the nature of the relief sought or the action requested in
the United States or in the treaty country with respect to the issues raised,
including a statement as to whether the taxpayer wishes to avail itself of the relief
provided under Rev. Proc. 99-32, 1999-2 C.B. 296, (hereinafter referred to as
Rev. Proc. 99-32"), as indicated in section 10 of this revenue procedure;

(h) a statement whether the period of limitations for the years for which relief is
sought has expired in the United States or in the treaty country;

(i) a statement of relevant domestic and foreign judicial or administrative
proceedings which involve the taxpayer and related persons;

(j) to the extent known by the taxpayer, a statement of relevant foreign judicial
or public administrative proceedings which do not involve the taxpayer or related
persons, but involve the same issue for which competent authority assistance is
requested;

(k) a statement whether the request for competent authority assistance involves
issues that are currently, or were previously, considered part of an Advance
Pricing Agreement ( APA ) proceeding or other proceeding relevant to the issue
under consideration in the United States or part of a similar proceeding in the
foreign country;

(l) if applicable, powers of attorney with respect to the taxpayer;

(m) a statement whether the taxpayer is requesting the Simultaneous Appeals
procedure as provided in section 8 of this revenue procedure;

(n) on a separate document, a statement that the taxpayer consents to the
disclosure to the competent authority of the treaty country (with the name of the
treaty country specifically stated) and that competent authority s staff, of any or
all of the items of information set forth or enclosed in the request for U.S.
competent authority assistance within the limits contained in the tax treaty under
which the taxpayer is seeking relief. The taxpayer may request, as part of this
statement, that its trade secrets not be disclosed to a foreign competent
authority. This statement must be dated and signed by a person having authority

to sign the taxpayer s federal tax returns and is required to facilitate the
administrative handling of the request by the U.S. competent authority for
purposes of the record-keeping requirements of section 6103(p) of the Code.
Failure to provide such a statement will not prevent the U.S. competent authority
from disclosing information under the terms of a treaty. See section 6103(k)(4) of
the Code;

(o) a penalties of perjury statement in the following form:

Under penalties of perjury, I declare that I have
examined this request, including accompanying
documents, and, to the best of my knowledge and
belief, the facts presented in support of the request for
competent authority assistance are true, correct and
complete.

The declaration must be signed by the person or persons on whose behalf the
request is being made and not by the taxpayer s representative. The person
signing for a corporate taxpayer must be an authorized officer of the taxpayer
who has personal knowledge of the facts. The person signing for a trust, an
estate or a partnership must be respectively, a trustee, an executor or a partner
who has personal knowledge of the facts; and

(p) any other information required under this revenue procedure, as applicable.
See, e.g., section 7.06 of this revenue procedure, which requires the provision
of certain information in the case of a request for the accelerated competent
authority procedure, and section 10 of this revenue procedure, which requires
the provision of certain information in the case of a request for Rev. Proc. 99-32
treatment.

.06 Other Dispute Resolution Programs. Requests for competent authority
assistance that involve an APA or Pre-Filing Agreement request must include
the information required under the relevant revenue procedure.

.07 Other Documentation. In addition, the taxpayer shall, on request, submit
any other information or documentation deemed necessary by the U.S. or
foreign competent authority for purposes of reaching an agreement. This
includes English translations of any documentation required in connection with
the competent authority request.

.08 Updates. The taxpayer must keep the U.S. competent authority informed of
all material changes in the information or documentation previously submitted as
part of, or in connection with, the request for competent authority assistance.
The taxpayer also must provide any updated information or new documentation
that becomes known or is created after the request is filed and which is relevant

to the resolution of the issues under consideration.

.09 Conferences. To the extent possible, the U.S. competent authority will
consult with the taxpayer regarding the status and progress of the mutual
agreement proceedings. The taxpayer may request a pre-filing conference with
the U.S. competent authority to discuss the mutual agreement process with
respect to matters covered under a treaty, including discussion of the proper time
for filing, the practical aspects of obtaining relief and actions necessary to
facilitate the proceedings. Similarly, after a matter is resolved by the competent
authorities, a taxpayer may also request a conference with the U.S. competent
authority to discuss the resolution.

# SEC. 5. SMALL CASE PROCEDURE FOR REQUESTING COMPETENT AUTHORITY ASSISTANCE

.01 General. To facilitate requests for assistance involving small cases, this
section provides a special procedure simplifying the form of a request for
assistance and, in particular, the amount of information that initially must be
submitted. All other requirements of this revenue procedure continue to apply to
requests for assistance made pursuant to this section.

.02 Small Case Standards. Eligible taxpayers may file an abbreviated request
for competent authority assistance in accordance with this section if the total
proposed adjustment involved in the matter is not greater than the following:

Taxpayer

Proposed Adjustment

Individual

$200,000

Corporation/Partnership

$1,000,000

Other

$200,000

.03 Small Case Filing Procedure. The abbreviated request for competent
authority assistance under the small case procedure must be dated and
signed by a person having the authority to sign the taxpayer s federal tax
returns. Although other information and documentation may be requested
at a later date, the initial request for assistance should include the
following information and materials:

(a) a statement indicating that this is a matter subject to the small case
procedure;

(b) the name, address, U.S. taxpayer identification number and foreign taxpayer
identification number (if any) of the taxpayer and if applicable, all related persons
involved in the matter;

(d) the taxable years and amounts involved with respect to the issues in both
U.S. and foreign currency;

(e) the name of the treaty country;

(f) on a separate document, a statement that the taxpayer consents to the
disclosure to the competent authority of the treaty country (with the name of the
treaty country specifically stated) and that competent authority s staff, of any or
all of the items of information set forth or enclosed in the request for U.S.
competent authority assistance within the limits contained in the tax treaty under
which the taxpayer is seeking relief. The taxpayer may request, as part of this
statement, that its trade secrets not be disclosed to a foreign competent
authority. This statement must be dated and signed by a person having authority
to sign the taxpayer s federal tax returns and is required to facilitate the
administrative handling of the request by the U.S. competent authority for
purposes of the record-keeping requirements of section 6103(p) of the Code.
Failure to provide such a statement will not prevent the U.S. competent authority
from disclosing information under the terms of a treaty. See section 6103(k)(4) of
the Code; and

(g) a penalties of perjury statement in the following form:

# SEC. 6. RELIEF REQUESTED FOR FOREIGN INITIATED ADJUSTMENT WITHOUT COMPETENT AUTHORITY INVOLVEMENT

Taxpayers seeking correlative relief with respect to a foreign initiated
adjustment involving a treaty matter should present their request to the U.S.
competent authority. However, when the adjustment involves years under the

jurisdiction of the Area Director or Appeals, taxpayers sometimes try to obtain
relief from these offices. This may occur, for example, if the adjustment involves
a re-allocation of income or deductions involving a related person in a country
with which the United States has an income tax treaty. In these cases, taxpayers
will be advised to contact the U.S. competent authority office. In appropriate
cases, the U.S. competent authority will advise the Area Director or Appeals
office on appropriate action. The U.S. competent authority may request the
taxpayer to provide the information described under sections 4.05 and 4.07 of
this revenue procedure. Failure to request competent authority assistance may
result in denial of correlative relief with respect to the issue, including applicable
foreign tax credits.

## SEC. 7. COORDINATION WITH OTHER ADMINISTRATIVE OR JUDICIAL PROCEEDINGS

.01 Suspension of Administrative Action with Respect to U.S. Adjustments.
When a request for competent authority assistance is accepted with respect to a
U.S. initiated adjustment, the Service will postpone further administrative action
with respect to the issues under competent authority consideration (such as
assessment or collection procedures), except (a) in situations in which the
Service may be requested otherwise by the U.S. competent authority, or (b) in
situations involving cases pending in court and in other instances in which action
must be taken to avoid prejudicing the U.S. Government s interest. The normal
administrative procedures continue to apply, however, to all other issues not
under U.S. competent authority consideration. For example, if there are other
issues raised during the examination and the taxpayer is not in agreement with
these issues, the usual procedures for completing the examination with respect
to these issues apply. If the taxpayer is issued a thirty day letter with respect to
these issues and prepares a protest of the unagreed issues, the taxpayer need
not include any unagreed issue under consideration by the competent authority.
Following the receipt of a taxpayer s protest, normal Appeals procedures shall
be initiated with respect to those issues not subject to competent authority
consideration.

.02 Coordination with Appeals. Taxpayers that disagree with a proposed U.S.
adjustment either may pursue their right of administrative review with Appeals
before requesting competent authority assistance or may request competent
authority assistance immediately. Appeals' consideration, if any, of potential
competent authority matters will be made without regard to other issues or
considerations that do not involve potential competent authority matters.
Taxpayers who are pursuing their rights with Appeals may contact the competent
authority if they believe they have a potential competent authority issue. If a
taxpayer decides to make a competent authority request, it may choose to make
a request pursuant to the Simultaneous Appeals procedures in section 8 of this
revenue procedure or otherwise. If a taxpayer makes a competent authority

request, the taxpayer is deemed to consent to the U.S. competent authority
contacting Appeals. See Rev. Proc. 2000-43, 2000-2 C.B. 404.

.03 Coordination with Litigation. The U.S. competent authority will not, without
the consent of the Associate Chief Counsel (International), accept (or continue to
consider) a taxpayer s request for assistance if the request involves a taxable
period pending in a U.S. court or involves a matter pending in a U.S. court or
designated for litigation for any taxable period. If the case is pending in the
United States Tax Court, the taxpayer may, in appropriate cases, be asked to
join the Service in a motion to sever issues or delay trial pending completion of
the competent authority proceedings. If the case is pending in any other court,
the Associate Chief Counsel (International) will consult with the Department of
Justice about appropriate action, and the taxpayer may, in appropriate cases, be
asked to join the U.S. Government in a motion to sever issues or delay trial
pending completion of the competent authority proceedings. Final decision on
severing issues or delaying trial rests with the court. The filing of a competent
authority request does not, however, relieve the taxpayer from taking any action
that may be necessary or required with respect to litigation.

.04 Coordination with Other Alternative Dispute Resolution and Pre-Filing
Procedures. Competent authority assistance is available to taxpayers in
conjunction with other alternative dispute resolution and pre-filing procedures in
order to ensure taxation in accordance with tax treaty provisions. Other revenue
procedures and IRS publications should be consulted as necessary with regard
to specific matters. See, e.g., Rev. Proc. 96-53, 1996-2 C.B. 375 (concerning
APAs); or Rev. Proc. 98-21, 1998-1 C.B. 585 (concerning Article XIII(8) of the
U.S .- Canada treaty). Taxpayers that have applications under any other dispute
resolution procedures should seek competent authority assistance as early as
possible if they believe they have potential competent authority issues.

.05 Effect of Agreements or Judicial Determinations on Competent Authority
Proceedings. If a taxpayer either executes a closing agreement with the Service
(whether or not contingent upon competent authority relief) with respect to a
potential competent authority issue or reaches a settlement on the issue with
Appeals or with Chief Counsel pursuant to a closing agreement or other written
agreement, the U.S. competent authority will endeavor only to obtain a
correlative adjustment from the treaty country and will not undertake any actions
that would otherwise change such agreements. However, the U.S. competent
authority will, in appropriate cases, consider actions necessary for the purpose of
providing treatment similar to that provided in Rev. Proc. 99-32. Once a
taxpayer s tax liability for the taxable periods in issue has been determined by a
U.S. court (including settlement of the proceedings before or during trial), the
U.S. competent authority similarly will endeavor only to obtain correlative relief
from the treaty country and will not undertake any action that would otherwise

reduce the taxpayer s federal tax liability for the taxable periods in issue as
determined by a U.S. court. Taxpayers therefore should be aware that in these
situations, as well as in situations where a treaty country takes a similar position
with respect to issues resolved under its domestic laws, relief from double
taxation may be jeopardized.

.06 Accelerated Competent Authority Procedure. A taxpayer requesting
competent authority assistance with respect to an issue raised by the Service
also may request that the competent authorities attempt to resolve the issue for
subsequent taxable periods ending prior to the date of the request for assistance
if the same issue continues in those periods. See also Rev. Proc. 94-67, 1994-2
C.B. 800, concerning the Accelerated Issue Resolution ( AIR ) process. The
U.S. competent authority will consider the request and will contact the
appropriate IRS field office to consult on whether the issue should be resolved
for subsequent taxable periods. If the IRS field office consents to this procedure,
the U.S. competent authority will address with the foreign competent authority
the request for such taxable periods. For purposes of resolving the issue, the
taxpayer must furnish all relevant information and statements that may be
requested by the U.S. competent authority pursuant to this revenue procedure.
In addition, if the case involves a Coordinated Industry Case ( CIC ) taxpayer,
the taxpayer must furnish all relevant information and statements requested by
the Service, as described in Rev. Proc. 94-67, 1994-2 C.B. 800. If the case
involves a non-CIC taxpayer, the taxpayer must furnish all relevant information
and statements that may be requested by the IRS field office. A request for the
accelerated competent authority procedure may be made at the time of filing a
request for competent authority assistance or at any time thereafter, but
generally before conclusion of the mutual agreement in the case; however,
taxpayers are encouraged to request the procedure as early as practicable. The
application of the accelerated procedure may require the prior consent of the
Associate Chief Counsel (International). See section 7.03 of this revenue
procedure. A request for the accelerated competent authority procedure must
contain a statement that the taxpayer agrees that: (1) the inspection of books of
account or records under the accelerated competent authority procedure will not
preclude or impede (under section 7605(b) or any administrative provision
adopted by the Service) a later examination of a return or inspection of books of
account or records for any taxable period covered in the accelerated competent
authority assistance request, and (2) the Service need not comply with any
applicable procedural restrictions (for example, providing notice under section
7605(b)) before beginning such examination or inspection. The accelerated
competent authority procedure is not subject to the AIR process limitations.

## SEC. 8. SIMULTANEOUS APPEALS PROCEDURE

.01 General. A taxpayer filing a request for competent authority assistance
under this revenue procedure may, at the same time or at a later date, request

Appeals consideration of the competent authority issue under the procedures
and conditions provided in this section. The U.S. competent authority also may
request Appeals involvement if it is determined that such involvement would
facilitate the negotiation of a mutual agreement in the case or otherwise would
serve the interest of the Service. The taxpayer may, at any time, request a pre-
filing conference with the offices of the Chief of Appeals and the U.S. competent
authority to discuss the Simultaneous Appeals procedure. See also section 7.02
of this revenue procedure for coordination with the competent authority of cases
already in Appeals. However, arbitration or mediation procedures that otherwise
would be available through the Appeals process are not available for cases in
the simultaneous appeals procedure. See Announcement 2000-4, 2000-1 C.B.
317, as extended by Announcement 2002-60, 2002-26 I.R.B. 28, or any
subsequent announcement; and Rev. Proc. 2002-44, 2002-26 I.R.B. 10.

.02 Time for Requesting the Simultaneous Appeals Procedure.

(a) When Filing For Competent Authority Assistance. The Simultaneous
Appeals procedure may be invoked at any of the following times:

(1) When the taxpayer applies for competent authority assistance with respect
to an issue for which the examining IRS office has proposed an adjustment and
before the protest is filed;

(2) When the taxpayer files a protest with Appeals and decides to sever the
competent authority issue and seek competent authority assistance while other
issues are referred to Appeals; and

(3) When the case is in Appeals and the taxpayer later decides to request
competent authority assistance with respect to the competent authority issue.
The taxpayer may sever the competent authority issue for referral to the U.S.
competent authority and invoke the Simultaneous Appeals procedure at any time
when the case is in Appeals but before settlement of the issue. Taxpayers,
however, are encouraged to invoke the Simultaneous Appeals procedure as
soon as possible, preferably as soon as practicable after the first Appeals
conference.

(b) After Filing For Competent Authority Assistance. The taxpayer may request
the Simultaneous Appeals procedure at any time after requesting competent
authority assistance. However, a taxpayer s request for the Simultaneous
Appeals procedure generally will be denied if made after the date the U.S.
position paper is communicated to the foreign competent authority, unless the
U.S. competent authority determines that the procedure would facilitate an early
resolution of the competent authority issue or otherwise is in the best interest of
the Service.

.03 Cases Pending in Court. If the matter is pending before a U.S. court or has
been designated for litigation and jurisdiction has been released to the U.S.
competent authority, a request for the Simultaneous Appeals procedure may be
granted only with the consent of the U.S. competent authority and the Associate
Chief Counsel (International).

.04 Request for Simultaneous Appeals Procedure. The taxpayer s request for
the Simultaneous Appeals procedure should be addressed to the U.S.
competent authority either as part of the initial competent authority assistance
request or, if made later, as a separate letter to the U.S. competent authority.
The request should state whether the issue was previously protested to Appeals
for the periods in competent authority or for prior periods (in which case a copy
of the relevant portions of the protest and an explanation of the outcome, if any,
should be provided). The U.S. competent authority will send a copy of the
request to the Chief of Appeals, who, in turn, will forward a copy to the
appropriate Area Director. When the U.S. competent authority invokes the
Simultaneous Appeals procedure, the taxpayer will be notified. The U.S.
competent authority has jurisdiction of the issue when the Simultaneous Appeals
procedure is invoked.

.05 Role of Appeals in the Simultaneous Appeals Procedure.

(a) Appeals Process. The Appeals representative assigned to the case will
consult with the taxpayer and the U.S. competent authority for the purpose of
reaching a resolution of the unagreed issue under competent authority
jurisdiction before the issue is presented to the foreign competent authority. For
this purpose, established Appeals procedures generally apply. The Appeals
representative will consult with the U.S. competent authority during this process
to ensure appropriate coordination of the Appeals process with the competent
authority procedure, so that the terms of a tentative resolution and the principles
and facts upon which it is based are compatible with the position that the U.S.
competent authority intends to present to the foreign competent authority with
respect to the issue. Any resolution reached with the Service under this
procedure is subject to the competent authority process and, therefore, is
tentative and not binding on the Service or the taxpayer. The Service will not
request the taxpayer to conclude the Appeals process with a written agreement.
The conclusions of the tentative resolution, however, generally will be reflected in
the U.S. position paper used for negotiating a mutual agreement with the foreign
competent authority. The procedures under this section do not give taxpayers
the right to receive reconsideration of the issue by Appeals where the taxpayer
applied for competent authority assistance after having received substantial
Appeals consideration. Rather, the Service may rely upon, but necessarily will
not be bound by, such previous consideration by Appeals when considering the
case under the Simultaneous Appeals procedure.

(b) Assistance to U.S. Competent Authority. The U.S. competent authority is
responsible for developing a U.S. position paper with respect to the issue and for
conducting the mutual agreement procedure. Generally, requesting Appeals
consideration of an issue under competent authority jurisdiction will not affect the
manner in which taxpayers normally are involved in the competent authority
process.

.06 Denial or Termination of Simultaneous Appeals Procedure.

(a) Taxpayer s Termination. The taxpayer may, at any time, withdraw its
request for the Simultaneous Appeals procedure.

(b) Service s Denial or Termination. The U.S. competent authority, the Chief of
Appeals or the appropriate Area Director may decide to deny or terminate the
Simultaneous Appeals procedure if the procedure is determined to be prejudicial
to the mutual agreement procedure or to the administrative appeals process. For
example, a taxpayer that received Appeals consideration before requesting
competent authority assistance, but was unable to reach a settlement in
Appeals, may be denied the Simultaneous Appeals procedure. A taxpayer may
request a conference with the offices of the U.S. competent authority and the
Chief of Appeals to discuss the denial or termination of the procedure.

.07 Returning to Appeals. If the competent authorities fail to agree or if the
taxpayer does not accept the mutual agreement reached by the competent
authorities, the taxpayer will be permitted to refer the issue to Appeals for further
consideration.

.08 Appeals Consideration of Non-Competent Authority Issues. The
Simultaneous Appeals procedure does not affect the taxpayer s rights to
Appeals consideration of other unresolved issues. The taxpayer may pursue
settlement discussions with respect to the other issues without waiting for
resolution of the issues under competent authority jurisdiction.

## SEC. 9. PROTECTIVE MEASURES

.01 General. In negotiating treaties, the United States seeks to secure an
agreement with its treaty partner that any competent authority agreement
reached with the treaty partner will be implemented notwithstanding any time
limits or other procedural limitations in the domestic law of either country.
However, treaty provisions providing a competent authority with the ability to
waive such limitations do not affect the application of statutes of limitation in the
event that a request for competent authority assistance is declined or the
competent authorities are unable to reach an agreement. In addition, the

particular treaty or the posture of the particular case may indicate that the
taxpayer or a related person must take protective measures with the U.S. and
foreign tax authorities so that the implementation of any agreement reached by
the competent authorities or alternative remedies outside of the competent
authority process are not barred by administrative, legal or procedural barriers.
Such barriers may arise either before or after a competent authority request is
filed. Protective measures include, but are not limited to: (a) filing protective
claims for refund or credit; (b) staying the expiration of any period of limitations
on the making of a refund or other tax adjustment; (c) avoiding the lapse or
termination of the taxpayer s right to appeal any tax determination; (d) complying
with all applicable procedures for invoking competent authority consideration,
including applicable treaty provisions dealing with time limits within which to
invoke such remedy; and (e) contesting an adjustment or seeking an appropriate
correlative adjustment with respect to the U.S. or treaty country tax. A taxpayer
should take protective measures in a timely manner, that is, in a manner that
allows sufficient time for appropriate procedures to be completed and effective
before barriers arise. Generally, a taxpayer should consider, at the time an
adjustment is first proposed, which protective measures may be necessary and
when such measures should be taken. However, earlier consideration of
appropriate actions may be desirable, for example, in the case of a recurring
adjustment or where the taxpayer otherwise is on notice that an adjustment is
likely to be proposed. Taxpayers may consult with the U.S. competent authority
to determine the need for and timing of protective measures in their particular
case.

.02 Filing Protective Claim for Credit or Refund with a Competent Authority
Request.

(a) In General. A valid protective claim for credit or refund must meet the
requirements of section 6402 of the Code and the regulations thereunder.
Accordingly, a protective claim must (a) fully advise the Service of the grounds
on which credit or refund is claimed; (b) contain sufficient facts to apprise the
Service of the exact basis of the claim; (c) state the year for which the claim is
being made; (d) be on the proper form; and (e) be verified by a written
declaration made under penalties of perjury.

(b) Treatment of Competent Authority Request as Protective Claim. The Service
will treat a request for competent authority assistance itself as one or more
protective claims for credit or refund with respect to issues raised in the request
and within the jurisdiction of the competent authority and will not require a
taxpayer to file the form described in Treasury regulation section 301.6402-3 with
respect to those issues, provided that the request meets the other requirements
of section 6402 of the Code and the regulations thereunder, as described in
section 9.02 (a) of this revenue procedure. The information constituting the
protective claim should be set forth in a separate section of the request for

assistance and captioned Protective claim pursuant to section 9.02 of Rev.
Proc. 2002-52. The penalties of perjury statement described in section 4.05(o)
satisfies the requirement for the written declaration and a separate declaration is
not required.

### .03 Protective Filing Before Competent Authority Request.

(a) In general. There may be situations in which a taxpayer would be unable to
file a formal competent authority assistance request before the period of
limitations would expire with respect to the affected U.S. return. In these
situations, before the period of limitations expires, the taxpayer should file a
protective claim for credit or refund of the taxes attributable to the potential
competent authority issue to ensure that alternative remedies outside of the
competent authority process will not be barred. Situations for which a protective
filing may be appropriate include: (i) the treaty country is considering but has not
yet proposed an adjustment; (ii) the treaty country has proposed an adjustment
but the related taxpayer in the treaty country decides to pursue administrative or
judicial remedies in the foreign country; or (iii) the terms of the applicable treaty
require notification to be made to the competent authority within a certain time
period. In considering whether to accept a taxpayer s request for competent
authority assistance, the U.S. competent authority will consider whether the
proper treaty notification has been made in accordance with this subsection.

(b) Letter to Competent Authority Treated as Protective Claim. In situations in
which a protective claim is filed prior to submitting a request for competent
authority assistance, the taxpayer may make a protective claim in the form of a
letter to the competent authority. The letter must indicate that the taxpayer is
filing a protective claim and set forth, to the extent available, the information
required under section 4.05(a) through (j) or under section 5.03(a) through (e) of
this revenue procedure, as applicable. The letter must include a penalties of
perjury statement as described in sections 4.05(o) and 5.03(g). The letter must
be filed in the same place and manner as a request for competent authority
assistance. The Service will treat the letter as a protective claim(s) with respect
to issues raised in the letter to and within the jurisdiction of the competent
authority and will not require a taxpayer to file the form described in Treasury
regulation section 301.6402-3 with respect to those issues, provided that the
request meets the other requirements described in section 9.02 (a). The letter
must include the caption Protective claim pursuant to section 9.03 of Rev.
Proc. [INSERT NUMBER OF THIS REVENUE PROCEDURE WHEN
PUBLISHED].

(c) Notification Requirement. After filing a protective claim, the taxpayer
periodically must notify the U.S. competent authority whether the taxpayer still is
considering filing for competent authority assistance. The notification must be
filed every six months until the formal request for competent authority assistance

is filed. The U.S. competent authority may deny competent authority assistance
if the taxpayer fails to file this semi-annual notification.

(d) No Consultation between Competent Authorities until Formal Request is
Filed. The U.S. competent authority generally will not undertake any
consultation with the treaty country s competent authority with respect to a
protective claim filed under section 9.03 of this revenue procedure. The U.S.
competent authority will place the protective claim in suspense until either a
formal request for competent authority assistance is filed or the taxpayer notifies
the U.S. competent authority that competent authority consideration is no longer
needed. In appropriate cases the U.S. competent authority will send the
taxpayer a formal notice of claim disallowance.

.04 Effect of a Protective Claim.

Protective claims filed under either section 9.02 or 9.03 of this revenue
procedure will only allow a credit or a refund to the extent of the grounds set forth
in the protective claim and only to the extent agreed to by the U.S. and foreign
competent authorities or to the extent unilaterally allowed by the U.S. competent
authority. This revenue procedure does not grant a taxpayer the right to invoke
section 482 of the Code in its favor or compel the Service to allocate income or
deductions or grant a tax credit or refund.

### .05 Treaty Provisions Waiving Procedural Barriers.

In those cases where the mutual agreement article authorizes a competent
authority to waive or remove procedural barriers to the credit or refund of tax,
taxpayers may be allowed a credit or refund of tax even though the otherwise
applicable period of limitations has expired, prior closing agreements have been
entered into, or other actions have been taken or omitted that ordinarily would
foreclose relief in the form of a credit or refund of tax. However, under these
provisions there may still be situations in which taxpayers should take
appropriate protective measures as described under this revenue procedure or
under applicable foreign procedures. For example, procedural limitations cannot
be waived if a request for competent authority assistance is declined or the
competent authorities are unable to reach agreement. In addition, some
countries may take the position that domestic statutes of limitation on refunds
cannot be waived under the relevant treaty. Because there are circumstances
that are not under the control of taxpayers or the U.S. competent authority that
might have necessitated the taking of protective measures, it is advisable that
taxpayers take protective measures to increase the possibility that appropriate
relief is available to them in all circumstances.

SEC. 10. APPLICATION OF REV. PROC. 99-32

Rev. Proc. 99-32 generally provides a means to conform a taxpayer's accounts
and allow repatriation of certain amounts following an allocation of income
between related U.S. and foreign corporations under section 482 of the Code
without the federal income tax consequences of the adjustments that would
otherwise have been necessary to conform the taxpayer's accounts in light of the
allocation of income. In situations where a section 482 allocation is the subject
of a request for competent authority assistance, any new or pending requests for
Rev. Proc. 99-32 treatment relating to such allocation must be disposed of by the
competent authority. Accordingly, if a taxpayer intends to seek Rev. Proc. 99-32
treatment in connection with competent authority assistance relating to a section
482 allocation, the taxpayer must request Rev. Proc. 99-32 treatment in
conjunction with its request for competent authority assistance. If a taxpayer has
already requested Rev. Proc. 99-32 treatment at the time it submits a request for
competent authority assistance relating to a section 482 allocation, consideration
of Rev. Proc. 99-32 treatment must be transferred to competent authority and a
copy of the pending Rev. Proc. 99-32 request forwarded along with the request
for competent authority assistance.

## SEC. 11. DETERMINATION OF CREDITABLE FOREIGN TAXES

For purposes of determining the amount of foreign tax creditable under sections
901 and 902 of the Code, any amounts paid to foreign tax authorities that would
not have been due if the treaty country had made a correlative adjustment may
not constitute a creditable foreign tax. See 1.901-2(e)(5)(i) of the regulations
and Rev. Rul. 92-75, 1992-2 C.B. 197. Acts or omissions by the taxpayer that
preclude effective competent authority assistance, including failure to take
protective measures as described in section 9 of this revenue procedure or
failure to seek competent authority assistance, may constitute failure to exhaust
all effective and practical remedies for purposes of 1.901-2(e)(5)(i). Further, the
fact that the taxpayer has sought competent authority assistance but obtained no
relief, either because the competent authorities failed to reach an agreement or
because the taxpayer rejected an agreement reached by the competent
authorities, generally will not, in and of itself, demonstrate for purposes of

1.901-2(e)(5)(i) that the taxpayer has exhausted all effective and practical
remedies to reduce the taxpayer s liability for foreign tax (including liability
pursuant to a foreign tax audit adjustment). Any determination within the Service
of whether a taxpayer has exhausted the competent authority remedy must be
made in consultation with the U.S. competent authority.

## SEC. 12. ACTION BY U.S. COMPETENT AUTHORITY

.01 Notification of Taxpayer. Upon receiving a request for assistance pursuant
to this revenue procedure, the U.S. competent authority will notify the taxpayer
whether the facts provide a basis for assistance.

.02 Denial of Assistance. The U.S. competent authority generally will not accept
a request for competent authority assistance or will cease providing assistance
to the taxpayer if:

(a) the taxpayer is not entitled to the treaty benefit or safeguard in question or to
the assistance requested;

(b) the taxpayer is willing only to accept a competent authority agreement under
conditions that are unreasonable or prejudicial to the interests of the U.S.
Government;

(d) the taxpayer does not agree that competent authority negotiations are a
government-to-government activity that does not include the taxpayer s
participation in the negotiation proceedings;

(e) the taxpayer does not furnish upon request sufficient information to
determine whether the treaty applies to the taxpayer s facts and circumstances;

(f) the taxpayer was found to have acquiesced in a foreign initiated adjustment
that involved significant legal or factual issues that otherwise would be properly
handled through the competent authority process and then unilaterally made a
corresponding correlative adjustment or claimed an increased foreign tax credit,
without initially seeking U.S. competent authority assistance;

(g) the taxpayer: (i) fails to comply with this revenue procedure; (ii) fails to
cooperate with the U.S. competent authority (including failing to provide sufficient
facts and documentation to support its claim of double taxation or taxation
contrary to the treaty); or (iii) failed to cooperate with the Service during the
examination of the periods in issue and such failure significantly impedes the
ability of the U.S. competent authority to negotiate and conclude an agreement
(e.g., significant factual development is required that cannot effectively be
completed outside the examination process); or

(h) the transaction giving rise to the request for competent authority assistance:
(i) includes an issue pending in a U.S. Court, or designated for litigation, unless
competent authority consideration is concurred in by the U.S. competent
authority and the Associate Chief Counsel (International); or (ii) involves
fraudulent activity by the taxpayer.

.03 Extending Period of Limitations for Assessment. If the U.S. competent
authority accepts a request for assistance, the taxpayer may be requested to
execute a consent extending the period of limitations for assessment of tax for

the taxable periods in issue. Failure to comply with the provisions of this
subsection can result in denial of assistance by the U.S. competent authority with
respect to the request.

.04 No Review of Denial of Request for Assistance. The U.S. competent
authority s denial of a taxpayer s request for assistance or dismissal of a matter
previously accepted for consideration pursuant to this revenue procedure is final
and not subject to administrative review.

.05 Notification. The U.S. competent authority will notify a taxpayer requesting
assistance under this revenue procedure of any agreement that the U.S. and the
foreign competent authorities reach with respect to the request. If the taxpayer
accepts the resolution reached by the competent authorities, the agreement shall
provide that it is final and is not subject to further administrative or judicial review.
If the competent authorities fail to agree, or if the agreement reached is not
acceptable to the taxpayer, the taxpayer may withdraw the request for competent
authority assistance and may then pursue all rights to review otherwise available
under the laws of the United States and the treaty country. Where the competent
authorities fail to agree, no further competent authority remedies generally are
available, except with respect to treaties that provide for arbitration of the
dispute. See, e.g., Article 25(5) of the U.S .- German income tax treaty. A request
for arbitration shall be made in accordance with the procedures prescribed under
the applicable treaty and related documents, including procedures which the
Service may promulgate from time to time.

.06 Closing Agreement. When appropriate, the taxpayer will be requested to
reflect the terms of the mutual agreement and of the competent authority
assistance provided in a closing agreement, in accordance with section 6.07 and
6.17 of Rev. Proc. 68-16, 1968-1 C.B. 770.

.07 Unilateral Withdrawal or Reduction of U.S. Initiated Adjustments. With
respect to U.S. initiated adjustments under section 482 of the Code, the primary
goal of the mutual agreement procedure is to obtain a correlative adjustment
from the treaty country. For other types of U.S. initiated adjustments, the primary
goal of the U.S. competent authority is the avoidance of taxation in contravention
of an applicable treaty. Unilateral withdrawal or reduction of U.S. initiated
adjustments, therefore, generally will not be considered. For example, the U.S.
competent authority will not withdraw or reduce an adjustment to income,
deductions, credits or other items solely because the period of limitations has
expired in the foreign country and the foreign competent authority has declined
to grant any relief. If the period provided by the foreign statute of limitations has
expired, the U.S. competent authority may take into account other relevant facts
to determine whether such withdrawal or reduction is appropriate and may, in
extraordinary circumstances and as a matter of discretion, provide such relief
with respect to the adjustment to avoid actual or economic double taxation. In no

event, however, will relief be granted where there is fraud or negligence with
respect to the relevant transactions. In keeping with the U.S. Government s view
that tax treaties should be applied in a balanced and reciprocal manner, the
United States normally will not withdraw or reduce an adjustment where the
treaty country does not grant similar relief in equivalent cases.

## SEC. 13. REQUESTS FOR RULINGS

.01 General. Requests for advance rulings regarding the interpretation or
application of a tax treaty, as distinguished from requests for assistance from the
U.S. competent authority pursuant to this revenue procedure, must be submitted
to the Associate Chief Counsel (International).

.02 Foreign Tax Rulings. The Service does not issue advance 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.

### SEC. 14. FEES

Rev. Proc. 2002-1, 2002-1 I.R.B. 1, sec. 15, requires the payment of user fees
for requests to the Service for rulings, opinion letters, determination letters and
similar requests. No user fees are required for requests for competent authority
assistance pursuant to this revenue procedure.

## SEC. 15. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 96-13, 91-23 and Rev. Proc. 91-26 are modified and superseded by
this revenue procedure. Rev. Proc. 96-53, 199-2 C.B. 375 is amplified. Rev. Rul.
92-75, 1992-2 C.B. 197, is clarified. Rev. Proc. 96-14, 1996-1 C.B. 626, is
modified and superseded. Section 10 of this revenue procedure generally
restates Rev. Proc. 96-14, but without the requirement for the concurrence of the
Director, International, in Rev. Proc. 99-32 treatment where competent authority
assistance is not requested. References in this revenue procedure to Rev. Proc.
99-32 shall be treated as references to Rev. Proc. 65-17, 1965-1 C.B. 833, as
modified, amplified and clarified from time to time, for taxable years beginning
before August 24, 1999.

## SEC. 16. EFFECTIVE DATE

This revenue procedure is effective for requests for competent authority
assistance and Rev. Proc. 99-32 treatment filed after [INSERT DATE OF
PUBLICATION OF THIS REVENUE PROCEDURE].

DRAFTING INFORMATION

The principal authors of this revenue procedure are Aziz Benbrahim, Tax Treaty
Division and Amanda Ehrlich of the Office of the Associate Chief Counsel
(International). For further information regarding this revenue procedure, contact
either Mr. Benbrahim on (202) 874-1671 or Ms. Ehrlich on (202) 622-3880 (not
toll-free calls).

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