SECTION 11. HOW ARE PRE-SUBMISSION CONFERENCES SCHEDULED? encouraged for all TAM requests......... .02 Purpose of a pre-submission conference .... .04 Branch will contact the field or area office to arrange the pre-submission conference ..... .05 Pre-submission conferences for TAMs and TEAMs generally conducted by telephone ...... .07 Manner of submitting pre-submission materials ....... .08 Pre-submission conference may not be taped .09 Discussion of substantive issues is not binding on the Service ....... SECTION 12. WHAT MUST BE INCLUDED IN THE REQUEST FOR A TAM? ...... guage other than English; and statement regarding interpretation of an income or estate tax treaty. .02 Statement recommending information to be deleted from public inspection .03 Transmittal Form 4463, Request for Technical Advice .... SECTION 14. HOW ARE REQUESTS FOR TAMs HANDLED? .01 Taxpayer notified ........ .03 If the taxpayer disagrees with the Service's statement of facts. .04 If the Service disagrees with the taxpayer's statement of facts ....... .05 If the interpretation of a foreign law or foreign document is a material fact. .06 If the taxpayer has not submitted the required deletions statement ... ...... empt organizations open to public inspection). .08 Criminal or civil fraud cases .09 Consider whether published general guidance is appropriate. SECTION 16. HOW DOES A TAXPAYER APPEAL A DECISION REGARDING WHETHER TO SEEK A TAM .01 Taxpayer cannot appeal decision to seek a TAM or a TEAM .... .02 Taxpayer notified of decision not to seek a TAM or a TEAM ..... .03 Taxpayer may appeal decision not to seek a TAM or a TEAM....... .04 Territory manager or area director, appeals determines whether TAM or TEAM will be sought .05 Territory manager's or area director, appeals' decision may be reviewed but not appealed.. .06 Special procedures applicable to appeals regarding frivolous issues SECTION 18. HOW ARE CONFERENCES FOR TAMs SCHEDULED? .01 If requested, offered to the taxpayer when adverse TAM proposed ..... .02 Normally held within 21 calendar days of contact with the taxpayer ........ .03 21-day period will be extended if justified and approved .... 97 97 97 97 .05 Entitled to one conference of right .06 Conference may not be taped .08 Service makes tentative recommendations .09 Additional conferences may be offered ....... SECTION 19. HOW ARE CONFERENCES FOR TEAMS SCHEDULED? ...... .01 Held within 30 calendar days of receipt of request .02 Normally conducted by telephone .03 Held at the branch level ...... SECTION 20. HOW IS STATUS OF TAM OR TEAM REQUEST OBTAINED? SECTION 21. HOW DOES THE NATIONAL OFFICE PREPARE THE TAM OR THE TEAM? .... .01 Delegates authority to branch chiefs and other reviewers ....... .02 Determines whether request has been properly made. .03 Contacts the field or area office to discuss issues .05 Informs the field or area office if additional information is needed.... .06 Informs the field or area office of the tentative conclusion .... .07 If a tentative conclusion has not been reached, gives date estimated for tentative conclusion .08 Advises the field or area office if tentative conclusion is changed... .09 Generally does not discuss the tentative conclusion with the taxpayer .10 Advises the field or area office of final conclusions .11 If needed, requests additional information. .13 Informs the taxpayer when requested deletions will not be made .14 Prepares reply in two parts .15 Routes replies to appropriate office .16 Sends a copy of reply to appropriate division counsel .... SECTION 22. HOW DOES A FIELD OR AREA OFFICE USE THE TAM OR THE TEAM? ........ .01 Generally applies advice in processing the taxpayer's case .02 Discussion with the taxpayer .03 Provides copy to the taxpayer SECTION 23. WHAT IS THE EFFECT OF A TAM OR A TEAM? .... .01 Applies only to the taxpayer for whom TAM or TEAM was requested.. .02 Usually applies retroactively .03 Generally applied retroactively to modify or revoke prior TAM or TEAM. .05 Applies to continuing action or series of actions until material facts change ... .06 Does not apply retroactively under certain conditions.... SECTION 24. HOW MAY RETROACTIVE EFFECT BE LIMITED? ....... .01 Taxpayer may request that retroactivity be limited. .02 Form of request to limit retroactivity — continuing transaction before examination of return .03 Form of request to limit retroactivity — in all other cases... SECTION 25. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REV. PROC. 2002–2? ...... SECTION 26. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS?.... This revenue procedure explains when and how the Associate Chief Counsel (Corpo- rate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel (International), the As- sociate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Pro- cedure and Administration), and the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) issue technical advice memoranda (TAM) and technical expe- dited advice memoranda (TEAM) to a director or an area director, appeals. It also explains the rights a taxpayer has when a director or an area director, appeals requests a TAM or TEAM Operating divisions of the The Internal Revenue Service includes four operating divisions that are responsible for (1) Large and Mid-Size Business Division (LMSB), which generally serves corpora- (2) Small Business/Self-Employed Division (SB/SE), which generally serves corpora- (3) Wage and Investment Division (W&I), which generally serves individuals with wage (4) Tax Exempt and Government Entities Division (TE/GE), which generally serves three distinct taxpayer segments: employee plans, exempt organizations, and government enti- Updated annually This revenue procedure is updated annually as the second revenue procedure of the year, SECTION 2. DEFINITIONS For purposes of this revenue procedure- (1) any reference to “director” refers to the Director, Field Operations, LMSB for the tax- ganizations Examinations, the Director, Federal, State & Local Governments, the Director, Tax Exempt Bonds, or the Director, Indian Tribal Governments, and their respective offices; (2) any reference to “area director, appeals” refers to the Area Director, Appeals; (3) any reference to “territory manager” refers to a territory manager, LMSB, a territory manager, compliance, SB/SE, or the Director, Compliance, W&I, as appropriate, and, includes, when appropriate, the Employee Plans Examinations Area manager, the Exempt Organizations Examinations Area manager, the Employee Plans Determinations manager, the Exempt Organizations Determinations manager, the group manager, Federal, State & Local Governments, the manager, field operations, Tax Exempt Bonds, or the group manager, Indian Tribal Governments; (4) any reference to “area office” refers to the Appeals Area Office; (5) any reference to “appeals officer” includes, when appropriate, the appeals team case leader; (6) the term “taxpayer” includes any person subject to any provision of the Internal Revenue Code (including an issuer of § 103 obligations) and, when appropriate, their representatives; (7) the term “national 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 (International), the Office of Associate Chief Counsel (Passthroughs and Special Industries), the Office of Associate Chief Counsel (Procedure and Administration), or the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate; (8) the term “field” refers to field counsel, exam, or appeals personnel; and (9) the term “field counsel” refers to any attorney with the Office of Chief Counsel who is not part of the national office or Division Counsel Headquarters. SECTION 3. WHAT IS THE “Technical advice” means advice or guidance in the form of a memorandum (hereinafter referred to as a TAM) furnished by the national office upon the request of a director or an area director, appeals, submitted in accordance with the provisions of this revenue procedure, in response to any technical or procedural question that develops during any proceeding on the interpretation and proper application of tax law, tax treaties, regulations, revenue rulings, notices, or other precedents published by the national office to a specific set of facts. Such proceedings include: (1) the examination of a taxpayer's return; (2) the consideration of a taxpayer's claim for refund or credit; (3) any matter under examination or in appeals pertaining to tax-exempt bonds, tax credit bonds, or mortgage credit certificates; and (4) any other matter involving a specific taxpayer under the jurisdiction of the territory manager or the area director, appeals. They also include processing and considering nondocketed cases in an area office but do not include docketed cases in which the issue involves 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) for any taxable year. If a case is docketed for an estate tax issue for a taxpayer while a request for a TAM on the same issue for the same taxpayer is pending, the national office may issue the TAM only if the appropriate appeals officer and government counsel agree, by memorandum, to the issuance of the TAM. “Technical expedited advice” means technical advice issued in an expedited manner (hereinafter referred to as a TEAM). Subject to agreement among the taxpayer, field or area office, and the national office, any issue eligible for a TAM can be submitted for TEAM treatment. A TEAM has several characteristics that are different from a TAM, including the following: a mandatory pre-submission conference involving the taxpayer (section 11.01), (except in two situations where taxpayer concurrence is not required for TEAM procedures); in the event of a tentatively adverse conclusion to the taxpayer or the field, a conference of right will be offered to the taxpayer and the field (section 19.01); and once the conference of right is held, Sec. 2(1) no further conferences will be offered (section 19.04). The procedures associated with the issuance of a TEAM help expedite certain aspects of the TAM process and eliminate some of the requirements that may delay or frustrate the TAM process. TAMs and TEAMs help Service personnel close cases and also help establish and maintain consistent technical positions throughout the Service. A director or an area director, appeals may raise an issue in any tax period, even though a TAM or TEAM may have been requested and furnished for the same or similar issue for another tax period. Neither TAMs nor TEAMs include oral or written legal advice furnished to the field or area office, other than advice furnished pursuant to this revenue procedure. In accordance with section 16.02 of this revenue procedure, a taxpayer's request for referral of an issue to the national office for a TAM or a TEAM will not be denied merely because the national office has already provided legal advice, other than advice furnished pursuant to this revenue procedure, to the field or area office on the matter. SECTION 4. ON WHAT .01 This revenue procedure applies to requests for TAMs or TEAMs on any 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), or the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), and on certain issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration). See section 3 of Rev. Proc. 2003–1, this Bulletin, for a description of the principal subject matters of each office. Issues under the jurisdiction of Issues involving shipowners' protection and indemnity associations and certain homeowners associations .02 The jurisdiction of the Associate Chief Counsel (Passthroughs and Special Industries) extends to TAMs and TEAMs under $ 526 (shipowners' protection and indemnity associations) and § 528 (certain homeowners associations). SECTION 5. ON WHAT Alcohol, tobacco, and firearms taxes .01 The procedures for obtaining technical advice specifically applicable to federal alcohol, tobacco, and firearms taxes under subtitle E of the Code are currently under the jurisdiction of the Bureau of Alcohol, Tobacco and Firearms. The Homeland Security Act of 2002, Pub. L. No. 107–296, provides for the transfer of the Bureau of Alcohol, Tobacco and Firearms to the Department of Justice and for the creation of a Tax and Trade Bureau to take over the Bureau of Alcohol, Tobacco and Firearms functions that are not transferred to the Department of Justice. Tax exempt and government entities .02 The procedures for obtaining a TAM or a TEAM specifically on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, are found in Rev. Proc. 2003–5, this Bulletin. The procedures under Rev. Proc. 2003–2 (this revenue Sec. 5.02 |