[Title 26 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2005 Edition]
[From the U.S. Government Printing Office]



[[Page i]]



          26


          Part 600 to End

                         Revised as of April 1, 2005


          Internal Revenue
          
          


________________________

          Containing a codification of documents of general 
          applicability and future effect

          As of April 1, 2005
          With Ancillaries
                    Published by
                    Office of the Federal Register
                    National Archives and Records
                    Administration
                     A Special Edition of the Federal Register

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 26:
          Chapter I--Internal Revenue Service, Department of 
          the Treasury (Continued)                                   3
  Finding Aids:
      Table of CFR Titles and Chapters........................     167
      Alphabetical List of Agencies Appearing in the CFR......     185
      List of CFR Sections Affected...........................     195

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                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 26 CFR 601.101 
                       refers to title 26, part 
                       601, section 101.

                     ----------------------------

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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
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    To determine whether a Code volume has been amended since its 
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Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
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citations for the regulations are referred to by volume number and page 
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inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

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Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 2001, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, 1973-1985, or 1986-2000, published in 11 separate 
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Sections Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
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    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

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appearing in the Code of Federal Regulations.

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[[Page vii]]

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                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

April 1, 2005.

[[Page ix]]



                               THIS TITLE

    Title 26--Internal Revenue is composed of twenty volumes. The 
contents of these volumes represent all current regulations issued by 
the Internal Revenue Service, Department of the Treasury, as of April 1, 
2005. The first thirteen volumes comprise part 1 (Subchapter A--Income 
Tax) and are arranged by sections as follows: Sec. Sec.  1.0-1.60; 
Sec. Sec.  1.61-1.169; Sec. Sec.  1.170-1.300; Sec. Sec.  1.301-1.400; 
Sec. Sec.  1.401-1.440; Sec. Sec.  1.441-1.500; Sec. Sec.  1.501-1.640; 
Sec. Sec.  1.641-1.850; Sec. Sec.  1.851-1.907; Sec. Sec.  1.908-1.1000; 
Sec. Sec.  1.1001-1.1400; Sec. Sec.  1.1401-1.1550; and Sec.  1.1551 to 
end. The fourteenth volume containing parts 2-29, includes the remainder 
of subchapter A and all of Subchapter B--Estate and Gift Taxes. The last 
six volumes contain parts 30-39 (Subchapter C--Employment Taxes and 
Collection of Income Tax at Source); parts 40-49; parts 50-299 
(Subchapter D--Miscellaneous Excise Taxes); parts 300-499 (Subchapter 
F--Procedure and Administration); parts 500-599 (Subchapter G--
Regulations under Tax Conventions); and part 600 to end (Subchapter H--
Internal Revenue Practice).

    The OMB control numbers for Title 26 appear in Sec.  602.101 of this 
chapter. For the convenience of the user, Sec.  602.101 appears in the 
Finding Aids section of the volumes containing parts 1 to 599.

    For this volume, Elmer Barksdale was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page 1]]



                       TITLE 26--INTERNAL REVENUE




                            (Part 600 to End)

  --------------------------------------------------------------------
                                                                    Part

chapter i--Internal Revenue Service, Department of the 
  Treasury (Continued)......................................         601

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    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)




                  (This book contains part 600 to End)

  --------------------------------------------------------------------


  Editorial Note: IRS published a document at 45 FR 6088, Jan. 25, 1980, 
deleting statutory sections from their regulations. In chapter I, cross 
references to the deleted material have been changed to the 
corresponding sections of the IRS Code of 1954 or to the appropriate 
regulations sections. When either such change produced a redundancy, the 
cross reference has been deleted. For further explanation, see 45 FR 
20795, March 31, 1980.

                 SUBCHAPTER H--INTERNAL REVENUE PRACTICE
Part                                                                Page
600             [Reserved]
601             Statement of procedural rules...............           5
602             OMB control numbers under the Paperwork 
                    Reduction Act...........................         141
701             Presidential election campaign fund.........         157
702             Presidential primary matching payment 
                    account.................................         158
703-800         [Reserved]
801             Balanced system for measuring organizational 
                    and employee performance within the 
                    Internal Revenue Service................         159
802-End         [Reserved]

Supplementary Publications: Internal Revenue Service Looseleaf 
  Regulations System. Additional supplementary publications are issued 
  covering Alcohol and Tobacco Tax Regulations, and Regulations Under 
  Tax Conventions.

[[Page 5]]



                 SUBCHAPTER H_INTERNAL REVENUE PRACTICE



                           PART 600 [RESERVED]



PART 601_STATEMENT OF PROCEDURAL RULES--Table of Contents




                   Subpart A_General Procedural Rules

Sec.
601.101 Introduction.
601.102 Classification of taxes collected by the Internal Revenue 
          Service.
601.103 Summary of general tax procedure.
601.104 Collection functions.
601.105 Examination of returns and claims for refund, credit or 
          abatement; determination of correct tax liability.
601.106 Appeals functions.
601.107 Criminal investigation functions.
601.108 Review of overpayments exceeding $200,000.
601.109 Bankruptcy and receivership cases.

              Subpart B_Rulings and Other Specific Matters

601.201 Rulings and determinations letters.
601.202 Closing agreements.
601.203 Offers in compromise.
601.204 Changes in accounting periods and in methods of accounting.
601.205 Tort claims.
601.206 Certification required to obtain reduced foreign tax rates under 
          income tax treaties.

Subpart C [Reserved]

        Subpart D_Provisions Special to Certain Employment Taxes

601.401 Employment taxes.

             Subpart E_Conference and Practice Requirements

601.501 Scope of rules; definitions.
601.502 Recognized representative.
601.503 Requirements of power of attorney, signatures, fiduciaries and 
          Commissioner's authority to substitute other requirements.
601.504 Requirements for filing power of attorney.
601.505 Revocation, change in representation and substitution or 
          delegation of representative.
601.506 Notices to be given to recognized representative; direct contact 
          with taxpayer; delivery of a check drawn on the United States 
          Treasury to recognized representative.
601.507 Evidence required to substantiate facts alleged by a recognized 
          representative.
601.508 Dispute between recognized representatives of a taxpayer.
601.509 Power of attorney not required in cases docketed in the Tax 
          Court of the United States.

       Requirements for Alcohol, Tobacco, and Firearms Activities

601.521 Requirements for conference and representation in conference.
601.522 Power of attorney.
601.523 Tax information authorization.
601.524 Execution and filing powers of attorney and tax information 
          authorizations.
601.525 Certification of copies of documents.
601.526 Revocation of powers of attorney and tax information 
          authorizations.
601.527 Other provisions applied to representation in alcohol, tobacco, 
          and firearms activities.

                 Subpart F_Rules, Regulations, and Forms

601.601 Rules and regulations.
601.602 Tax forms and instructions.

                        Subpart G_Records (Note)

601.702 Publication and public inspection.

                Subpart H_Tax Counseling for the Elderly

601.801 Purpose and statutory authority.
601.802 Cooperative agreements.
601.803 Program operations and requirements.
601.804 Reimbursements.
601.805 Miscellaneous administrative provisions.
601.806 Solicitation of applications.

 Subpart I_Use of Penalty Mail in the Location and Recovery of Missing 
                                Children

601.901 Missing children shown on penalty mail.

    Authority: 5 U.S.C. 301 and 552.
    Subpart I also issued under 39 U.S.C. 3220.

    Source: 32 FR 15990, Nov. 22, 1967, unless otherwise noted.



                   Subpart A_General Procedural Rules



Sec. 601.101  Introduction.

    (a) General. The Internal Revenue Service is a bureau of the 
Department of the Treasury under the immediate

[[Page 6]]

direction of the Commissioner of Internal Revenue. The Commissioner has 
general superintendence of the assessment and collection of all taxes 
imposed by any law providing internal revenue. The Internal Revenue 
Service is the agency by which these functions are performed. Within an 
internal revenue district the internal revenue laws are administered by 
a district director of internal revenue. The Director, Foreign 
Operations District, administers the internal revenue laws applicable to 
taxpayers residing or doing business abroad, foreign taxpayers deriving 
income from sources within the United States, and taxpayers who are 
required to withhold tax on certain payments to nonresident aliens and 
foreign corporations, provided the books and records of those taxpayers 
are located outside the United States. For purposes of these procedural 
rules any reference to a district director or a district office includes 
the Director, Foreign Operations District, or the District Office, 
Foreign Operations District, if appropriate. Generally, the procedural 
rules of the Service are based on the Internal Revenue Code of 1939 and 
the Internal Revenue Code of 1954, and the procedural rules in this part 
apply to the taxes imposed by both Codes except to the extent 
specifically stated or where the procedure under one Code is 
incompatible with the procedure under the other Code. Reference to 
sections of the Code are references to the Internal Revenue Code of 
1954, unless otherwise expressly indicated.
    (b) Scope. This part sets forth the procedural rules of the Internal 
Revenue Service respecting all taxes administered by the Service, and 
supersedes the previously published statement (26 CFR (1949 ed., Part 
300-End) Parts 600 and 601) with respect to such procedural rules. 
Subpart A provides a descriptive statement of the general course and 
method by which the Service's functions are channeled and determined, 
insofar as such functions relate generally to the assessment, 
collection, and enforcement of internal revenue taxes. Certain 
provisions special to particular taxes are separately described in 
Subpart D of this part. Conference and practice requirements of the 
Internal Revenue Service are contained in Subpart E of this part. 
Specific matters not generally involved in the assessment, collection, 
and enforcement functions are separately described in Subpart B of this 
part. A description of the rule making functions of the Department of 
the Treasury with respect to internal revenue tax matters is contained 
in Subpart F of this part. Subpart G of this part relates to matters of 
official record in the Internal Revenue Service and the extent to which 
records and documents are subject to publication or open to public 
inspection. This part does not contain a detailed discussion of the 
substantive provisions pertaining to any particular tax or the 
procedures relating thereto, and for such information it is necessary 
that reference be made to the applicable provisions of law and the 
regulations promulgated thereunder. The regulations relating to the 
taxes administered by the Service are contained in Title 26 of the Code 
of Federal Regulations.

[38 FR 4955, Feb. 23, 1973 and 41 FR 20880, May 21, 1976, as amended at 
45 FR 7251, Feb. 1, 1980; 49 FR 36498, Sept. 18, 1984; T.D. 8685, 61 FR 
58008, Nov. 12, 1996]



Sec. 601.102  Classification of taxes collected by the Internal Revenue 
Service.

    (a) Principal divisions. Internal revenue taxes fall generally into 
the following principal divisions:
    (1) Taxes collected by assessment.
    (2) Taxes collected by means of revenue stamps.
    (b) Assessed taxes. Taxes collected principally by assessment fall 
into the following two main classes:
    (1) Taxes within the jurisdiction of the U.S. Tax Court. These 
include:
    (i) Income and profits taxes imposed by Chapters 1 and 2 of the 1939 
Code and taxes imposed by subtitle A of the 1954 Code, relating to 
income taxes.
    (ii) Estate taxes imposed by Chapter 3 of the 1939 Code and Chapter 
11 of the 1954 Code.
    (iii) Gift tax imposed by Chapter 4 of the 1939 Code and Chapter 12 
of the 1954 Code.
    (iv) The tax on generation-skipping transfers imposed by Chapter 13 
of the 1954 Code.

[[Page 7]]

    (v) Taxes imposed by Chapters 41 through 44 of the 1954 Code.
    (2) Taxes not within the jurisdiction of the U.S. Tax Court. Taxes 
not imposed by Chapter 1, 2, 3, or 4 of the 1939 Code or Subtitle A or 
Chapter 11 or 12 of the 1954 Code are within this class, such as:
    (i) Employment taxes.
    (ii) Miscellaneous excise taxes collected by return.
    (3) The difference between these two main classes is that only taxes 
described in subparagraph (1) of this paragraph, i.e., those within the 
jurisdiction of the Tax Court, may be contested before an independent 
tribunal prior to payment. Taxes of both classes may be contested by 
first making payment, filing claim for refund, and then bringing suit to 
recover if the claim is disallowed or no decision is rendered thereon 
within six months.

[32 FR 15990, Nov. 22, 1967, as amended at 35 FR 7111, May 6, 1970; 46 
FR 26053, May 11, 1981; T.D. 8685, 61 FR 58008, Nov. 12, 1996]



Sec. 601.103  Summary of general tax procedure.

    (a) Collection procedure. The Federal tax system is basically one of 
self-assessment. In general each taxpayer (or person required to collect 
and pay over the tax) is required to file a prescribed form of return 
which shows the facts upon which tax liability may be determined and 
assessed. Generally, the taxpayer must compute the tax due on the return 
and make payment thereof on or before the due date for filing the 
return. If the taxpayer fails to pay the tax when due, the district 
director of internal revenue, or the director of the regional service 
center after assessment issues a notice and demands payment within 10 
days from the date of the notice. In the case of wage earners, 
annuitants, pensioners, and nonresident aliens, the income tax is 
collected in large part through withholding at the source. Another means 
of collecting the income tax is through payments of estimated tax which 
are required by law to be paid by certain individual and corporate 
taxpayers. Neither withholding nor payments of estimated tax relieves a 
taxpayer from the duty of filing a return otherwise required. Certain 
excise taxes are collected by the sale of internal revenue stamps.
    (b) Examination and determination of tax liability. After the 
returns are filed and processed in internal revenue service centers, 
some returns are selected for examination. If adjustments are proposed 
with which the taxpayer does not agree, ordinarily the taxpayer is 
afforded certain appeal rights. If the taxpayer agrees to the proposed 
adjustments and the tax involved is an income, profits, estate, gift, 
generation-skipping transfer, or Chapter 41, 42, 43, or 44, tax, and if 
the taxpayer waives restrictions on the assessment and collection of the 
tax (see Sec. 601.105(b)(4)), the deficiency will be immediately 
assessed.
    (c) Disputed liability--(1) General. The taxpayer is given an 
opportunity to request that the case be considered by an Appeals Office 
provided that office has jurisdiction (see Sec. 601.106(a)(3)). If the 
taxpayer requests such consideration, the case will be referred to the 
Appeals Office, which will afford the taxpayer the opportunity for a 
conference. The determination of tax liability by the Appeals Office is 
final insofar as the taxpayer's appeal rights within the Service are 
concerned. Upon protest of cases under the jurisdiction of the Director, 
Foreign Operations District, exclusive settlement authority is vested in 
the Appeals Office having jurisdiction of the place where the taxpayer 
requests the conference. If the taxpayer does not specify a location for 
the conference, or if the location specified is outside the territorial 
limits of the United States, the Washington, D.C. Appeals Office of the 
Mid-Atlantic Region assumes jurisdiction.
    (2) Petition to the U.S. Tax Court. In the case of income, profits, 
estate, and gift taxes, imposed by Subtitles A and B, and excise taxes 
under Chapters 41 through 44 of the 1954 Code, before a deficiency may 
be assessed a statutory notice of deficiency (commonly called a ``90-day 
letter'') must be sent to the taxpayer by certified mail or registered 
mail unless the taxpayer waives this restriction on assessment. See, 
however, Sec. Sec. 601.105(h) and 601.109 for exceptions. The taxpayer 
may then file a petition for a redetermination of the proposed 
deficiency with the U.S. Tax

[[Page 8]]

Court within 90 days from the date of the mailing of the statutory 
notice. If the notice is addressed to a person outside the States of the 
Union and the District of Columbia, the period within which a petition 
may be filed in the Tax Court is 150 days in lieu of 90 days. In other 
words, the taxpayer has the right in respect of these taxes to contest 
any proposed deficiency before an independent tribunal prior to 
assessment or payment of the deficiency. Unless the taxpayer waives the 
restrictions on assessment and collection after the date of the mailing 
of the statutory notice, no assessment or collection of a deficiency 
(not including the correction of a mathematical error) may be made in 
respect of these taxes until the expiration of the applicable period or, 
if a petition is filed with the Tax Court, until the decision of the 
Court has become final. If, however, the taxpayer makes a payment with 
respect to a deficiency, the amount of such payment may be assessed. 
See, however, Sec. 601.105(h). If the taxpayer fails to file a petition 
with the Tax Court within the applicable period, the deficiency will be 
assessed upon the expiration of such period and notice and demand for 
payment of the amount thereof will be mailed to the taxpayer. If the 
taxpayer files a petition with the Tax Court, the entire amount 
redetermined as the deficiency by a final decision of the Tax Court will 
be assessed and is payable upon notice and demand. There are no 
restrictions on the timely assessment and collection of the amount of 
any deficiency determined by the Tax Court, and a notice of appeal of 
the Court's decision will not stay the assessment and collection of the 
deficiency so determined, unless on or before the time the notice of 
appeal is filed the taxpayer files with the Tax Court a bond in a sum 
fixed by the Court not exceeding twice the portion of the deficiency in 
respect of which the notice of appeal is filed. No part of an amount 
determined as a deficiency but disallowed as such by a decision of the 
Tax Court which has become final may be assessed or collected by levy or 
by proceeding in court with or without assessment.
    (3) Claims for refund. After payment of the tax a taxpayer may, 
within the applicable period of limitations, contest the assessment by 
filing with the district director a claim for refund of all or any part 
of the amount paid, except with respect to certain taxes determined by 
the Tax Court, the decision of which has become final. If the claim is 
allowed, the overpayment of tax and allowable interest thereon will be 
credited against other liabilities of the taxpayer, or will be refunded 
to the taxpayer. Generally, if the claim for refund is rejected in whole 
or in part, the taxpayer is notified of the rejection by certified mail 
or registered mail. The taxpayer may then bring suit in the United 
States District Court or in the United States Claims Court for recovery 
of the tax. Suit may not be commenced before the expiration of six 
months from the date of filing of the claim for refund, unless a 
decision is rendered thereon within that time, nor after the expiration 
of two years from the date of mailing by certified mail or registered 
mail to the taxpayer of a notice of the disallowance of the part of the 
claim to which the suit relates. Under the 1954 Code, the 2-year period 
of limitation for bringing suit may be extended for such period as may 
be agreed upon in a properly executed Form 907. Also, under the 1954 
Code, if the taxpayer files a written waiver of the requirement that the 
taxpayer be sent a notice of disallowance, the 2-year period for 
bringing suit begins to run on the date such waiver is filed. See 
section 6532(a) of the Code.

[32 FR 15990, Nov. 22, 1967, as amended at 38 FR 4955, Feb. 23, 1973; 43 
FR 44497, Sept. 28, 1978; 45 FR 7251, Feb. 1, 1980; 46 FR 26053, May 11, 
1981; 49 FR 36498, Sept. 18, 1984]



Sec. 601.104  Collection functions.

    (a) Collection methods--(1) Returns. Generally, an internal revenue 
tax assessment is based upon a return required by law or regulations to 
be filed by the taxpayer upon which the taxpayer computes the tax in the 
manner indicated by the return. Certain taxpayers who choose to use the 
Optional Tax Tables may elect to have the Internal Revenue Service 
compute the tax and mail them a notice stating the amount of tax due. If 
a taxpayer fails to make a return it may be made for the taxpayer by a 
district director or

[[Page 9]]

other duly authorized officer or employee. See section 6020 of the Code 
and the regulations thereunder. Returns must be made on the forms 
prescribed by the Internal Revenue Service. Forms are obtainable at the 
principal and branch offices of district directors of internal revenue. 
Taxpayers overseas may also obtain forms from any U.S. Embassy or 
consulate. Forms are generally mailed to persons whom the Service has 
reason to believe may be required to file returns, but failure to 
receive a form does not excuse failure to comply with the law or 
regulations requiring a return. Returns, supplementary returns, 
statements or schedules, and the time for filing them, may sometimes be 
prescribed by regulations issued under authority of law by the 
Commissioner with the approval of the Secretary of the Treasury or the 
Secretary's delegate. A husband and wife may make a single income tax 
return jointly. Certain affiliated groups of corporations may file 
consolidated income tax returns. See section 1501 of the Code and the 
regulations thereunder.
    (2) Withholding of tax at source. Withholding at the source of 
income payments is an important method used in collecting taxes. For 
example, in the case of wage earners, the income tax is collected in 
large part through the withholding by employers of taxes on wages paid 
to their employees. The tax withheld at the source on wages is applied 
as a credit in payment of the individual's income tax liability for the 
taxable year. In no case does withholding of the tax relieve an 
individual from the duty of filing a return otherwise required by law. 
The chief means of collecting the income tax due from nonresident alien 
individuals and foreign corporations having United States source gross 
income which is not effectively connected with the conduct of a trade or 
business in the United States is the withholding of the tax by the 
persons paying or remitting the income to the recipients. The tax 
withheld is allowed as a credit in payment of the tax imposed on such 
nonresident alien individuals and foreign corporations.
    (3) Payments of estimated tax. Any individual who may reasonably 
expect to receive gross income for the taxable year from wages or from 
sources other than wages, in excess of amounts specified by law, and who 
can reasonably expect his or her estimated tax to be at least $200 in 
1982, $300 in 1983, $400 in 1984, and $500 in 1985 and later is required 
to make estimated tax payments. Payments of estimated tax are applied in 
payment of the tax for the taxable year. A husband and wife may jointly 
make a single payment which may be applied in payment of the income tax 
liability of either spouse in any proportion they may specify. For 
taxable years ending on or after December 31, 1955, the law requires 
payments of estimated tax by certain corporations. See section 6154 of 
the Code.
    (b) Extension of time for filing returns--(1) General. Under certain 
circumstances the district directors or directors of service centers are 
authorized to grant a reasonable extension of time for filing a return 
or declaration. The maximum period for extensions cannot be in excess of 
6 months, except in the case of taxpayers who are abroad. With an 
exception in the case of estate tax returns, written application for 
extension must be received by the appropriate director on or before the 
date prescribed by law for filing the return or declaration.
    (2) Corporations. On or before the date prescribed by law for filing 
its income tax return, a corporation may obtain an automatic 6-month 
extension of time (a 3-month extension in the case of taxable years 
ending before December 31, 1982) for filing the income tax return by 
filing Form 7004 and paying the full amount of the properly estimated 
unpaid tax liability. For taxable years beginning before 1983, however, 
the corporation must remit with Form 7004 an estimated amount not less 
than would be required as the first installment of tax should the 
corporation elect to pay the tax in installments.
    (3) Individuals. On or before the date prescribed for the filing of 
the return of an individual, such individual may obtain an automatic 4-
month extension of time for filing his or her return by filing Form 4868 
accompanied by payment of the full amount of the estimated unpaid tax 
liability.

[[Page 10]]

    (c) Enforcement procedure--(1) General. Taxes shown to be due on 
returns, deficiencies in taxes, additional or delinquent taxes to be 
assessed, and penalties, interest, and additions to taxes, are recorded 
by the district director or the director of the appropriate service 
center as ``assessments.'' Under the law an assessment is prima facie 
correct for all purposes. Generally, the taxpayer bears the burden of 
disproving the correctness of an assessment. Upon assessment, the 
district director is required to effect collection of any amounts which 
remain due and unpaid. Generally, payment within 10 days from the date 
of the notice and demand for payment is requested; however, payment may 
be required in a shorter period if collection of the tax is considered 
to be in jeopardy. When collection of income tax is in jeopardy, the 
taxpayer's taxable period may be terminated under section 6851 of the 
Code and assessment of the tax made expeditiously under section 6201 of 
the Code.
    (2) Levy. If a taxpayer neglects or refuses to pay any tax within 
the period provided for its payment, it is lawful for the district 
director to make collection by levy on the taxpayer's property. However, 
unless collection is in jeopardy, the taxpayer must be furnished written 
notice of intent to levy no fewer than 10 days before the date of the 
levy. See section 6331 of the Code. No suit for the purpose of 
restraining the assessment or collection of an internal revenue tax may 
be maintained in any court, except to restrain the assessment or 
collection of income, estate, Chapters 41 through 44, or gift taxes 
during the period within which the assessment or collection of 
deficiencies in such taxes is prohibited. See section 7421 of the Code. 
Property taken under authority of any revenue law of the United States 
is irrepleviable. 28 U.S.C. 2463. If the Service sells property, and it 
is subsequently determined that the taxpayer had no interest in the 
property or that the purchaser was misled by the Service as to the value 
of the taxpayer's interest, immediate action will be taken to refund any 
money wrongfully collected if a claim is made and the pertinent facts 
are present. The mere fact that a taxpayer's interest in property turns 
out to be less valuable than the purchaser expected will not be regarded 
as giving the purchaser any claim against the Government.
    (3) Liens. The United States' claim for taxes is a lien on the 
taxpayer's property at the time of assessment. Such lien is not valid as 
against any purchaser, holder of a security interest, mechanic's lienor, 
or judgment lien creditor until notice has been filed by the district 
director. Despite such filing, the lien is not valid with respect to 
certain securities as against any purchaser of such security who, at the 
time of purchase, did not have actual notice or knowledge of the 
existence of such lien and as against a holder of a security interest in 
such security who, at the time such interest came into existence, did 
not have actual notice or knowledge of the existence of such lien. 
Certain motor vehicle purchases are similarly protected. Even though a 
notice of lien has been filed, certain other categories are afforded 
additional protection. These categories are: Retail purchases, casual 
sales, possessory liens, real property taxes and property assessments, 
small repairs and improvements, attorneys' liens, certain insurance 
contracts and passbook loans. A valid lien generally continues until the 
liability is satisfied, becomes unenforceable by reason of lapse of time 
or is discharged in bankruptcy. A certificate of release of lien will be 
issued not later than 30 days after the taxpayer furnishes proper bond 
in lieu of the lien, or 30 days after it is determined that the 
liability has been satisfied, has become unenforceable by reason of 
lapse of time, or has been discharged in bankruptcy. If a certificate 
has not been issued and one of the foregoing criteria for release has 
been met, a certificate of release of lien will be issued within 30 days 
after a written request by a taxpayer, specifying the grounds upon which 
the issuance of release is sought. The Code also contains additional 
provisions with respect to the discharge of specific property from the 
effect of the lien. Also, under certain conditions, a lien may be 
subordinated. The Code also contains additional provisions with respect 
to liens in the case of estate and gift taxes. For the specific

[[Page 11]]

rules with respect to liens, see Subchapter C of Chapter 64 of the Code 
and the regulations thereunder.
    (4) Penalties. In the case of failure to file a return within the 
prescribed time, a certain percentage of the amount of tax (or a minimum 
penalty) is, pursuant to statute, added to the tax unless the failure to 
file the return within the prescribed time is shown to the satisfaction 
of the district director or the director of the appropriate service 
center to be due to reasonable cause and not neglect. In the case of 
failure to file an exempt organization information return within the 
prescribed time, a penalty of $10 a day for each day the return is 
delinquent is assessed unless the failure to file the return within the 
prescribed time is shown to be due to reasonable cause and not neglect. 
In the case of failure to pay or deposit taxes due within the prescribed 
time, a certain percentage of the amount of tax due is, pursuant to 
statute, added to the tax unless the failure to pay or deposit the tax 
due within the prescribed time is shown to the satisfaction of the 
district director or the director of the appropriate service center to 
be due to reasonable cause and not neglect. Civil penalties are also 
imposed for fraudulent returns; in the case of income and gift taxes, 
for intentional disregard of rules and regulations or negligence; and 
additions to the tax are imposed for the failure to comply with the 
requirements of law with respect to the estimated income tax. There are 
also civil penalties for filing false withholding certificates, for 
substantial understatement of income tax, for filing a frivolous return, 
for organizing or participating in the sale of abusive tax shelters, and 
for aiding and abetting in the understatement of tax liability. See 
Chapter 68 of the Code. A 50 percent penalty, in addition to the 
personal liability incurred, is imposed upon any person who fails or 
refuses without reasonable cause to honor a levy. Criminal penalties are 
imposed for willful failure to make returns, keep records, supply 
information, etc. See Chapter 75 of the Code.
    (5) Informants' rewards. Payments to informers are authorized for 
detecting and bringing to trial and punishment persons guilty of 
violating the internal revenue laws. See section 7623 of the Code and 
the regulations thereunder. Claims for rewards should be made on Form 
211. Relevant facts should be stated on the form, which after execution 
should be forwarded to the district director of internal revenue for the 
district in which the informer resides, or to the Commissioner of 
Internal Revenue, Washington, DC 20224.

[32 FR 15990, Nov. 22, 1967, as amended at 32 FR 20645, Dec. 21, 1967; 
33 FR 17234, Nov. 21, 1968; 34 FR 6424, Apr. 12, 1969; 35 FR 7112, May 
6, 1970; 36 FR 7584, Apr. 22, 1971; 38 FR 4956, Feb. 23, 1973; 45 FR 
7251, Feb. 1, 1980; 49 FR 36499, Sept. 18, 1984; 49 FR 40809, Oct. 18, 
1984; T.D. 8685, 61 FR 58008, Nov. 12, 1996]



Sec. 601.105  Examination of returns and claims for refund, credit or 
abatement; determination of correct tax liability.

    (a) Processing of returns. When the returns are filed in the office 
of the district director of internal revenue or the office of the 
director of a regional service center, they are checked first for form, 
execution, and mathematical accuracy. Mathematical errors are corrected 
and a correction notice of any such error is sent to the taxpayer. 
Notice and demand is made for the payment of any additional tax so 
resulting, or refund is made of any overpayment. Returns are classified 
for examination at regional service centers. Certain individual income 
tax returns with potential unallowable items are delivered to 
Examination Divisions at regional service centers for correction by 
correspondence. Otherwise, returns with the highest examination 
potential are delivered to district Examinations Divisions based on 
workload capacities. Those most in need of examination are selected for 
office or field examination.
    (b) Examination of returns--(1) General. The original examination of 
income (including partnership and fiduciary), estate, gift, excise, 
employment, exempt organization, and information returns is a primary 
function of examiners in the Examination Division of the office of each 
district director of internal revenue. Such examiners are organized in 
groups, each of which is under the immediate supervision of a group 
supervisor designated by the district director. Revenue agents (and such 
other officers or employees of the

[[Page 12]]

Internal Revenue Service as may be designated for this purpose by the 
Commissioner) are authorized to examine any books, papers, records, or 
memoranda bearing upon matters required to be included in Federal tax 
returns and to take testimony relative thereto and to administer oaths. 
See section 7602 of the Code and the regulations thereunder. There are 
two general types of examination. These are commonly called ``office 
examination'' and ``field examination''. During the examination of a 
return a taxpayer may be represented before the examiner by an attorney, 
certified public accountant, or other representative. See Subpart E of 
this part for conference and practice requirements.
    (2) Office examination--(i) Adjustments by Examination Division at 
service center. Certain individual income tax returns identified as 
containing potential unallowable items are examined by Examination 
Divisions at regional service centers. Correspondence examination 
techniques are used. If the taxpayer requests an interview to discuss 
the proposed adjustments, the case is transferred to the taxpayer's 
district office. If the taxpayer does not agree to proposed adjustments, 
regular appellate procedures apply.
    (ii) Examinations at district office. Certain returns are examined 
at district offices by office examination techniques. These returns 
include some business returns, besides the full range of nonbusiness 
individual income tax returns. Office examinations are conducted 
primarily by the interview method. Examinations are conducted by 
correspondence only when warranted by the nature of the questionable 
items and by the convenience and characteristics of the taxpayer. In a 
correspondence examination, the taxpayer is asked to explain or send 
supporting evidence by mail. In an office interview examination, the 
taxpayer is asked to come to the district director's office for an 
interview and to bring certain records in support of the return. During 
the interview examination, the taxpayer has the right to point out to 
the examiner any amounts included in the return which are not taxable, 
or any deductions which the taxpayer failed to claim on the return. If 
it develops that a field examination is necessary, the examiner may 
conduct such examination.
    (3) Field examination. Certain returns are examined by field 
examination which involves an examination of the taxpayer's books and 
records on the taxpayer's premises. An examiner will check the entire 
return filed by the taxpayer and will examine all books, papers, 
records, and memoranda dealing with matters required to be included in 
the return. If the return presents an engineering or appraisal problem 
(e.g., depreciation or depletion deductions, gains or losses upon the 
sale or exchange of property, or losses on account of abandonment, 
exhaustion, or obsolescence), it may be investigated by an engineer 
agent who makes a separate report.
    (4) Conclusion of examination. At the conclusion of an office or 
field examination, the taxpayer is given an opportunity to agree with 
the findings of the examiner. If the taxpayer does not agree, the 
examiner will inform the taxpayer of the appeal rights. If the taxpayer 
does agree with the proposed changes, the examiner will invite the 
taxpayer to execute either Form 870 or another appropriate agreement 
form. When the taxpayer agrees with the proposed changes but does not 
offer to pay any deficiency or additional tax which may be due, the 
examiner will also invite payment (by check or money order), together 
with any applicable interest or penalty. If the agreed case involves 
income, profits, estate, gift, generation-skipping transfer, or Chapter 
41, 42, 43, or 44 taxes, the agreement is evidenced by a waiver by the 
taxpayer of restrictions on assessment and collection of the deficiency, 
or an acceptance of a proposed overassessment. If the case involves 
excise or employment taxes or 100 percent penalty, the agreement is 
evidenced in the form of a consent to assessment and collection of 
additional tax or penalty and waiver of right to file claim for 
abatement, or the acceptance of the proposed overassessment. Even though 
the taxpayer signs an acceptance of a proposed overassessment the 
district director or the director of the regional service center remains 
free to assess a deficiency. On the other hand, the taxpayer who has

[[Page 13]]

given a waiver may still claim a refund of any part of the deficiency 
assessed against, and paid by, the taxpayer, or any part of the tax 
originally assessed and paid by the taxpayer. The taxpayer's acceptance 
of an agreed overassessment does not prevent the taxpayer from filing a 
claim and bringing a suit for an additional sum, nor does it preclude 
the Government from maintaining suit to recover an erroneous refund. As 
a matter of practice, however, waivers or acceptances ordinarily result 
in the closing of a case insofar as the Government is concerned.
    (5) Technical advice from the National Office--(i) Definition and 
nature of technical advice. (a) As used in this subparagraph, 
``technical advice'' means advice or guidance as to the interpretation 
and proper application of internal revenue laws, related statutes, and 
regulations, to a specific set of facts, furnished by the National 
Office upon request of a district office in connection with the 
examination of a taxpayer's return or consideration of a taxpayer's 
return claim for refund or credit. It is furnished as a means of 
assisting Service personnel in closing cases and establishing and 
maintaining consistent holdings in the several districts. It does not 
include memorandums on matters of general technical application 
furnished to district offices where the issues are not raised in 
connection with the examination of the return of a specific taxpayer.
    (b) The consideration or examination of the facts relating to a 
request for a determination letter is considered to be in connection 
with the examination or consideration of a return of the taxpayer. Thus, 
a district director may, in his discretion, request technical advice 
with respect to the consideration of a request for a determination 
letter.
    (c) If a district director is of the opinion that a ruling letter 
previously issued to a taxpayer should be modified or revoked, and 
requests the National Office to reconsider the ruling, the reference of 
the matter to the National Office is treated as a request for technical 
advice and the procedures specified in subdivision (iii) of this 
subparagraph should be followed in order that the National Office may 
consider the district director's recommendation. Only the National 
Office can revoke a ruling letter. Before referral to the National 
Office, the district director should inform the taxpayer of his opinion 
that the ruling letter should be revoked. The district director, after 
development of the facts and consideration of the taxpayer's arguments, 
will decide whether to recommend revocation of the ruling to the 
National Office. For procedures relating to a request for a ruling, see 
Sec. 601.201.
    (d) The Assistant Commissioner (Technical), acting under a 
delegation of authority from the Commissioner of Internal Revenue, is 
exclusively responsible for providing technical advice in any issue 
involving the establishment of basic principles and rules for the 
uniform interpretation and application of tax laws other than those 
which are under the jurisdiction of the Bureau of Alcohol, Tobacco, and 
Firearms. This authority has been largely redelegated to subordinate 
officials.
    (e) The provisions of this subparagraph apply only to a case under 
the jurisdiction of a district director but do not apply to an Employee 
Plans case under the jurisdiction of a key district director as provided 
in Sec. 601.201(o) or to an Exempt Organization case under the 
jurisdiction of a key district director as provided in Sec. 601.201(n). 
The technical advice provisions applicable to Employee Plans and Exempt 
Organization cases are set forth in Sec. 601.201(n)(9). The provisions 
of this subparagraph do not apply to a case under the jurisdiction of 
the Bureau of Alcohol, Tobacco, and Firearms. They also do not apply to 
a case under the jurisdiction of an Appeals office, including a case 
previously considered by Appeals. The technical advice provisions 
applicable to a case under the jurisdiction of an Appeals office, other 
than Employee Plans and Exempt Organizations cases, are set forth in 
Sec. 601.106(f)(10). A case remains under the jurisdiction of the 
district director even though an Appeals office has the identical issue 
under consideration in the case of another taxpayer (not related within 
the meaning of section 267 of the Code) in an entirely different 
transaction. Technical advice may not be requested with respect to a 
taxable period if a prior Appeals disposition of

[[Page 14]]

the same taxable period of the same taxpayer's case was based on mutual 
concessions (ordinarily with a Form 870-AD, Offer of Waiver of 
Restrictions on Assessment and Collection of Deficiency in Tax and of 
Acceptance of Overassessment). However, technical advice may be 
requested by a district director on issues previously considered in a 
prior Appeals disposition, not based on mutual concessions, of the same 
taxable periods of the same taxpayer with the concurrence of the Appeals 
office that had the case.
    (ii) Areas in which technical advice may be requested. (a) District 
directors may request technical advice on any technical or procedural 
question that develops during the audit or examination of a return, or 
claim for refund or credit, of a taxpayer. These procedures are 
applicable as provided in subdivision (i) of this subparagraph.
    (b) District directors are encouraged to request technical advice on 
any technical or procedural question arising in connection with any case 
of the type described in subdivision (i) of this subparagraph, which 
cannot be resolved on the basis of law, regulations, or a clearly 
applicable revenue ruling or other precedent issued by the National 
Office. This request should be made at the earliest possible stage of 
the examination process.
    (iii) Requesting technical advice. (a) It is the responsibility of 
the district office to determine whether technical advice is to be 
requested on any issue before that office. However, while the case is 
under the jurisdiction of the district director, a taxpayer or his/her 
representative may request that an issue be referred to the National 
Office for technical advice on the grounds that a lack of uniformity 
exists as to the disposition of the issue, or that the issue is so 
unusual or complex as to warrant consideration by the National Office. 
This request should be made at the earliest possible stage of the 
examination process. While taxpayers are encouraged to make written 
requests setting forth the facts, law, and argument with respect to the 
issue, and reason for requesting National Office advice, a taxpayer may 
make the request orally. If, after considering the taxpayer's request, 
the examiner is of the opinion that the circumstances do not warrant 
referral of the case to the National Office, he/she will so advise the 
taxpayer. (See subdivision (iv) of this subparagraph for taxpayer's 
appeal rights where the examiner declines to request technical advice.)
    (b) When technical advice is to be requested, whether or not upon 
the request of the taxpayer, the taxpayer will be so advised, except as 
noted in (g) of this subdivision. If the examiner initiates the action, 
the taxpayer will be furnished a copy of the statement of the pertinent 
facts and the question or questions proposed for submission to the 
National Office. The request for advice submitted by the district 
director should be so worded as to avoid possible misunderstanding, in 
the National Office, of the facts or of the specific point or points at 
issue.
    (c) After receipt of the statement of facts and specific questions 
from the district office, the taxpayer will be given 10 calendar days in 
which to indicate in writing the extent, if any, to which he may not be 
in complete agreement. An extension of time must be justified by the 
taxpayer in writing and approved by the Chief, Examination Division. 
Every effort should be made to reach agreement as to the facts and 
specific point at issue. If agreement cannot be reached, the taxpayer 
may submit, within 10 calendar days after receipt of notice from the 
district office, a statement of his understanding as to the specific 
point or points at issue which will be forwarded to the National Office 
with the request for advice. An extension of time must be justified by 
the taxpayer in writing and approved by the Chief, Examination Division.
    (d) If the taxpayer initiates the action to request advice, and his 
statement of the facts and point or points at issue are not wholly 
acceptable to the district officials, the taxpayer will be advised in 
writing as to the areas of disagreement. The taxpayer will be given 10 
calendar days after receipt of the written notice to reply to the 
district official's letter. An extension of time must be justified by 
the taxpayer in writing and approved by the Chief, Examination Division. 
If agreement cannot be reached, both the statements

[[Page 15]]

of the taxpayer and the district official will be forwarded to the 
National Office.
    (e)(1) In the case of requests for technical advice the taxpayer 
must also submit, within the 10-day period referred to in (c) and (d) of 
this subdivision, whichever applicable (relating to agreement by the 
taxpayer with the statement of facts submitted in connection with the 
request for technical advice), the statement described in (f) of this 
subdivision of proposed deletions pursuant to section 6110(c) of the 
Code. If the statement is not submitted, the taxpayer will be informed 
by the district director that such a statement is required. If the 
district director does not receive the statement within 10 days after 
the taxpayer has been informed of the need for such statement, the 
district director may decline to submit the request for technical 
advice. If the district director decides to request technical advice in 
a case where the taxpayer has not submitted the statement of proposed 
deletions, the National Office will make those deletions which in the 
judgment of the Commissioner are required by section 6110(c) of the 
Code.
    (2) The requirements included in Sec. 601.105(b)(5) with respect to 
submissions of statements and other material with respect to proposed 
deletions to be made from technical advice memoranda before public 
inspection is permitted to take place do not apply to requests made by 
the district director before November 1, 1976, or requests for any 
document to which section 6104 of the Code applies.
    (f) In order to assist the Internal Revenue Service in making the 
deletions, required by section 6110(c) of the Code, from the text of 
technical advice memoranda which are open to public inspection pursuant 
to section 6110(a) of the Code, there must accompany requests for such 
technical advice either a statement of the deletions proposed by the 
taxpayer and the statutory basis for each proposed deletion, or a 
statement that no information other than names, addresses, and taxpayer 
identifying numbers need be deleted. Such statements shall be made in a 
separate document. The statement of proposed deletions shall be 
accompanied by a copy of all statements of facts and supporting 
documents which are submitted to the National Office pursuant to (c) or 
(d) of this subdivision, on which shall be indicated, by the use of 
brackets, the material which the taxpayer indicates should be deleted 
pursuant to section 6110(c) of the Code. The statement of proposed 
deletions shall indicate the statutory basis, under section 6110(c) of 
the Code, for each proposed deletion. The statement of proposed 
deletions shall not appear or be referred to anywhere in the request for 
technical advice. If the taxpayer decides to request additional 
deletions pursuant to section 6110(c) of the Code prior to the time the 
National Office replies to the request for technical advice, additional 
statements may be submitted.
    (g) If the taxpayer has not already done so, the taxpayer may submit 
a statement explaining the taxpayer's position on the issues, citing 
precedents which the taxpayer believes will bear on the case. This 
statement will be forwarded to the National Office with the request for 
advice. If it is received at a later date, it will be forwarded for 
association with the case file.
    (h) At the time the taxpayer is informed that the matter is being 
referred to the National Office, the taxpayer will also be informed of 
the taxpayer's right to a conference in the National Office in the event 
an adverse decision is indicated, and will be asked to indicate whether 
such a conference is desired.
    (i) Generally, prior to replying to the request for technical 
advice, the National Office shall inform the taxpayer orally or in 
writing of the material likely to appear in the technical advice 
memorandum which the taxpayer proposed be deleted but which the Internal 
Revenue Service determined should not be deleted. If so informed, the 
taxpayer may submit within 10 days any further information, arguments or 
other material in support of the position that such material be deleted. 
The Internal Revenue Service will attempt, if feasible, to resolve all 
disagreements with respect to proposed deletions prior to the time the 
National Office replies to

[[Page 16]]

the request for technical advice. However, in no event shall the 
taxpayer have the right to a conference with respect to resolution of 
any disagreements concerning material to be deleted from the text of the 
technical advice memorandum, but such matters may be considered at any 
conference otherwise scheduled with respect to the request.
    (j) The provisions of (a) through (i) of this subdivision, relating 
to the referral of issues upon request of the taxpayer, advising 
taxpayers of the referral of issues, the submission of proposed 
deletions, and the granting of conferences in the National Office, are 
not applicable to technical advice memoranda described in section 
611(g)(5)(A) of the Code, relating to cases involving criminal or civil 
fraud investigations and jeopardy or termination assessments. However, 
in such cases the taxpayer shall be allowed to provide the statement of 
proposed deletions to the National Office upon the completion of all 
proceedings with respect to the investigations or assessments, but prior 
to the date on which the Commissioner mails the notice pursuant to 
section 6110(f)(1) of the Code of intention to disclose the technical 
advice memorandum.
    (k) Form 4463, Request for Technical Advice, should be used for 
transmitting requests for technical advice to the National Office.
    (iv) Appeal by taxpayers of determinations not to seek technical 
advice. (a) If the taxpayer has requested referral of an issue before a 
district office to the National Office for technical advice, and after 
consideration of the request the examiner is of the opinion that the 
circumstances do not warrant such referral, he will so advise the 
taxpayer.
    (b) The taxpayer may appeal the decision of the examining officer 
not to request technical advice by submitting to that official, within 
10 calendar days after being advised of the decision, a statement of the 
facts, law, and arguments with respect to the issue, and the reasons why 
he believes the matter should be referred to the National Office for 
advice. An extension of time must be justified by the taxpayer in 
writing and approved by the Chief, Examination Division.
    (c) The examining officer will submit the statement of the taxpayer 
through channels to the Chief, Examination Division, accompanied by a 
statement of his reasons why the issue should not be referred to the 
National Office. The Chief, Examination Division, will determine, on the 
basis of the statements submitted, whether technical advice will be 
requested. If he determines that technical advice is not warranted, he 
will inform the taxpayer in writing that he proposes to deny the 
request. In the letter to the taxpayer the Chief, Examination Division, 
will (except in unusual situations where such action would be 
prejudicial to the best interests of the Government) state specifically 
the reasons for the proposed denial. The taxpayer will be given 15 
calendar days after receipt of the letter in which to notify the Chief, 
Examination Division, whether he agrees with the proposed denial. The 
taxpayer may not appeal the decision of the Chief, Examination Division, 
not to request technical advice from the National Office. However, if he 
does not agree with the proposed denial, all data relating to the issue 
for which technical advice has been sought, including taxpayer's written 
request and statements, will be submitted to the National Office, 
Attention: Director, Examination Division, for review. After review in 
the National Office, the district office will be notified whether the 
proposed denial is approved or disapproved.
    (d) While the matter is being reviewed in the National Office, the 
district office will suspend action on the issue (except where the delay 
would prejudice the Government's interests) until it is notified of the 
National Office decision. This notification will be made within 30 days 
after receipt of the data in the National Office. The review will be 
solely on the basis of the written record and no conference will be held 
in the National Office.
    (v) Conference in the National Office. (a) If, after a study of the 
technical advice request, it appears that advice adverse to the taxpayer 
should be given and a conference has been requested, the taxpayer will 
be notified of the time and place of the conference. If

[[Page 17]]

conferences are being arranged with respect to more than one request for 
advice involving the same taxpayer, they will be so scheduled as to 
cause the least inconvenience to the taxpayer. The conference will be 
arranged by telephone, if possible, and must be held within 21 calendar 
days after contact has been made. Extensions of time will be granted 
only if justified in writing by the taxpayer and approved by the 
appropriate Technical branch chief.
    (b) A taxpayer is entitled, as a matter of right, to only one 
conference in the National Office unless one of the circumstances 
discussed in (c) of this subdivision exists. This conference will 
usually be held at the branch level in the appropriate division 
(Corporation Tax Division or Individual Tax Division) in the office of 
the Assistant Commissioner (Technical), and will usually be attended by 
a person who has authority to act for the branch chief. In appropriate 
cases the examining officer may also attend the conference to clarify 
the facts in the case. If more than one subject is discussed at the 
conference, the discussion constitutes a conference with respect to each 
subject. At the request of the taxpayer or his representative, the 
conference may be held at an earlier stage in the consideration of the 
case than the Service would ordinarily designate. A taxpayer has no 
``right'' of appeal from an action of a branch to the director of a 
division or to any other National Office official.
    (c) In the process of review of a holding proposed by a branch, it 
may appear that the final answer will involve a reversal of the branch 
proposal with a result less favorable to the taxpayer. Or it may appear 
that an adverse holding proposed by a branch will be approved, but on a 
new or different issue or on different grounds than those on which the 
branch decided the case. Under either of these circumstances, the 
taxpayer or his representative will be invited to another conference. 
The provisions of this subparagraph limiting the number of conferences 
to which a taxpayer is entitled will not foreclose inviting a taxpayer 
to attend further conferences when, in the opinion of National Office 
personnel, such need arises. All additional conferences of this type 
discussed are held only at the invitation of the Service.
    (d) It is the responsibility of the taxpayer to furnish to the 
National Office, within 21 calendar days after the conference, a written 
record of any additional data, line of reasoning, precedents, etc., that 
were proposed by the taxpayer and discussed at the conference but were 
not previously or adequately presented in writing. Extensions of time 
will be granted only if justified in writing by the taxpayer and 
approved by the appropriate Technical branch chief. Any additional 
material and a copy thereof should be addressed to and sent to the 
National Office which will forward the copy to the appropriate district 
director. The district director will be requested to give the matter his 
prompt attention. He may verify the additional facts and data and 
comment upon it to the extent he deems it appropriate.
    (e) A taxpayer or a taxpayer's representative desiring to obtain 
information as to the status of the case may do so by contacting the 
following offices with respect to matters in the areas of their 
responsibility:

 
                                              Telephone numbers, (Area
                 Official                             Code 202)
 
Director, Corporation Tax Division          566-4504, 566-4505.
Director, Individual Tax Division           566-3767 or 566-3788.
 

    (vi) Preparation of technical advice memorandum by the National 
Office. (a) Immediately upon receipt in the National Office, the 
technical employee to whom the case is assigned will analyze the file to 
ascertain whether it meets the requirements of subdivision (iii) of this 
subparagraph. If the case is not complete with respect to any 
requirement in subdivisions (iii) (a) through (d) of this subparagraph, 
appropriate steps will be taken to complete the file. If any request for 
technical advice does not comply with the requirements of subdivision 
(iii)(e) of this subparagraph, relating to the statement of proposed 
deletions, the National Office will make those deletions from the 
technical advice memorandum which in the judgment of the Commissioner 
are required by section 6110(c) of the Code.
    (b) If the taxpayer has requested a conference in the National 
Office, the

[[Page 18]]

procedures in subdivision (v) of this subparagraph will be followed.
    (c) Replies to requests for technical advice will be addressed to 
the district director and will be drafted in two parts. Each part will 
identify the taxpayer by name, address, identification number, and year 
or years involved. The first part (hereafter called the ``Technical 
Advice Memorandum'') will contain (1) a recitation of the pertinent 
facts having a bearing on the issue; (2) a discussion of the facts, 
precedents, and reasoning of the National Office; and (3) the 
conclusions of the National Office. The conclusions will give direct 
answers, whenever possible, to the specific questions of the district 
office. The discussion of the issues will be in such detail that the 
district officials are apprised of the reasoning underlying the 
conclusion. There shall accompany the technical advice memorandum a 
notice pursuant to section 6110 (f)(1) of the Code of intention to 
disclose the technical advice memorandum (including a copy of the 
version proposed to be open to public inspection and notations of third 
party communications pursuant to section 6110 (d) of the Code) which the 
district director shall forward to the taxpayer at such time that the 
district director furnishes a copy of the technical advice memorandum to 
the taxpayer pursuant to (e) of this subsection.
    (d) The second part of the reply will consist of a transmittal 
memorandum. In the unusual cases it will serve as a vehicle for 
providing the district office administrative information or other 
information which, under the nondisclosure statutes, or for other 
reasons, may not be discussed with the taxpayer.
    (e) It is the general practice of the Service to furnish a copy of 
the technical advice memorandum to the taxpayer after it has been 
adopted by the district director. However, in the case of technical 
advice memoranda described in section 6110(g)(5)(A) of the Code, 
relating to cases involving criminal or civil fraud investigations and 
jeopardy or termination assessments, a copy of the technical advice 
memorandum shall not be furnished the taxpayer until all proceedings 
with respect to the investigations or assessments are completed.
    (f) After receiving the notice pursuant to section 6110(f)(1) of the 
Code of intention to disclose the technical advice memorandum, if the 
taxpayer desires to protest the disclosure of certain information in the 
technical advice memorandum, the taxpayer must within 20 days after the 
notice is mailed submit a written statement identifying those deletions 
not made by the Internal Revenue Service which the taxpayer believes 
should have been made. The taxpayer shall also submit a copy of the 
version of the technical advice memorandum proposed to be open to public 
inspection on which the taxpayer indicates, by the use of brackets, the 
deletions proposed by the taxpayer but which have not been made by the 
Internal Revenue Service. Generally the Internal Revenue Service will 
not consider the deletion under this subparagraph of any material which 
the taxpayer did not, prior to the time when the National Office sent 
its reply to the request for technical advice to the district director, 
propose be deleted. The Internal Revenue Service shall, within 20 days 
after receipt of the response by the taxpayer to the notice pursuant to 
section 6110(f)(1) of the Code, mail to the taxpayer its final 
administrative conclusion with respect to the deletions to be made.
    (vii) Action on technical advice in district offices. (a) Unless the 
district director feels that the conclusions reached by the National 
Office in a technical advice memorandum should be reconsidered and 
promptly requests such reconsideration, his office will proceed to 
process the taxpayer's case on the basis of the conclusions expressed in 
the technical advice memorandum.
    (b) The district director will furnish to the taxpayer a copy of the 
technical advice memorandum described in subdivision (vi)(c) of this 
subparagraph and the notice pursuant to section 6110(f)(1) of the Code 
of intention to disclose the technical advice memorandum (including a 
copy of the version proposed to be open to public inspection and 
notations of third party communications pursuant to section 6110(d) of 
the Code). The preceding sentence shall not apply to technical advice 
memoranda involving civil fraud

[[Page 19]]

or criminal investigations, or jeopardy or termination assessments, as 
described in subdivision (iii)(j) of this subparagraph or to documents 
to which section 6104 of the Code applies.
    (c) In those cases in which the National Office advises the district 
director that he should not furnish a copy of the technical memorandum 
to the taxpayer, the district director will so inform the taxpayer if he 
requests a copy.
    (viii) Effect of technical advice. (a) A technical advice memorandum 
represents an expression of the views of the Service as to the 
application of law, regulations, and precedents to the facts of a 
specific case, and is issued primarily as a means of assisting district 
officials in the examination and closing of the case involved.
    (b) Except in rare or unusual circumstances, a holding in a 
technical advice memorandum that is favorable to the taxpayer is applied 
retroactively. Moreover, since technical advice, as described in 
subdivision (i) of this subparagraph, is issued only on closed 
transactions, a holding in a technical advice memorandum that is adverse 
to the taxpayer is also applied retroactively unless the Assistant 
Commissioner (Technical) exercises the discretionary authority under 
section 7805(b) of the Code to limit the retroactive effect of the 
holding. Likewise, a holding in a technical advice memorandum that 
modifies or revokes a holding in a prior technical advice memorandum 
will also be applied retroactively, with one exception. If the new 
holding is less favorable to the taxpayer, it will generally not be 
applied to the period in which the taxpayer relied on the prior holding 
in situations involving continuing transactions of the type described in 
Sec. Sec. 601.201(1) (7) and 601.201(1) (8).
    (c) Technical advice memoranda often form the basis for revenue 
rulings. For the description of revenue rulings and the effect thereof, 
see Sec. Sec. 601.601(d)(2)(i)(a) and 601.601(d) (2) (v).
    (d) A district director may raise an issue in any taxable period, 
even though he or she may have asked for and been furnished technical 
advice with regard to the same or a similar issue in any other taxable 
period.
    (c) District procedure--(1) Office examination. (i) In a 
correspondence examination the taxpayer is furnished with a report of 
the examiner's findings by a form letter. The taxpayer is asked to sign 
and return an agreement if the taxpayer accepts the findings. The letter 
also provides a detailed explanation of the alternatives available if 
the taxpayer does not accept the findings, including consideration of 
the case by an Appeals office, and requests the taxpayer to inform the 
district director, within the specified period, of the choice of action. 
An Appeals office conference will be granted to the taxpayer upon 
request without submission of a written protest.
    (ii) If, at the conclusion of an office interview examination, the 
taxpayer does not agree with the adjustments proposed, the examiner will 
fully explain the alternatives available which include, if practicable, 
an immediate interview with a supervisor or an immediate conference with 
an Appeals Officer. If an immediate interview or Appeals office 
conference is not practicable, or is not requested by the taxpayer, the 
examination report will be mailed to the taxpayer under cover of an 
appropriate transmittal letter. This letter provides a detailed 
explanation of the alternatives available, including consideration of 
the case by an Appeals office, and requests the taxpayer to inform the 
district director, within the specified period, of the choice of action. 
An appeals office conference will be granted to the taxpayer upon 
request without submission of a written protest.
    (2) Field examination. (i) If, at the conclusion of an examination, 
the taxpayer does not agree with the adjustments proposed, the examiner 
will prepare a complete examination report fully explaining all proposed 
adjustments. Before the report is sent to the taxpayer, the case file 
will be submitted to the district Centralized Services and, in some 
cases, Quality Review function for appropriate review. Following such 
review, the taxpayer will be sent a copy of the examination report under 
cover of a transmittal (30-day) letter, providing a detailed explanation 
of the alternatives available, including consideration of the case by an

[[Page 20]]

Appeals office, and requesting the taxpayer to inform the district 
director, within the specified period, of the choice of action.
    (ii) If the total amount of proposed additional tax, proposed 
overassessment, or claimed refund (or, in an offer in compromise, the 
total amount of assessed tax, penalty, and interest sought to be 
compromised) does not exceed $2,500 for any taxable period, the taxpayer 
will be granted an Appeals office conference on request. A written 
protest is not required.
    (iii) If for any taxable period the total amount of proposed 
additional tax including penalties, proposed overassessment, or claimed 
refund (or, in an offer in compromise, the total amount of assessed tax, 
penalty, and interest sought to be compromised) exceeds $2,500 but does 
not exceed $10,000, the taxpayer, on request, will be granted an Appeals 
office conference, provided a brief written statement of disputed issues 
is submitted.
    (iv) If for any taxable period the total amount of proposed 
additional tax including penalties, proposed overassessment, or claimed 
refund (or, in an offer in compromise, the total amount of assessed tax, 
penalty, and interest sought to be compromised) exceeds $10,000, the 
taxpayer, on request, will be granted an Appeals office conference, 
provided a written protest is filed.
    (d) Thirty-day letters and protests--(1) General. The report of the 
examiner, as approved after review, recommends one of four 
determinations:
    (i) Acceptance of the return as filed and closing of the case;
    (ii) Assertion of a given deficiency or additional tax;
    (iii) Allowance of a given overassessment, with or without a claim 
for refund, credit, or abatement;
    (iv) Denial of a claim for refund, credit, or abatement which has 
been filed and is found wholly lacking in merit. When a return is 
accepted as filed (as in subdivision (i) of this subparagraph), the 
taxpayer is notified by appropriate ``no change'' letter. In an unagreed 
case, the district director sends to the taxpayer a preliminary or ``30-
day letter'' if any one of the last three determinations is made (except 
a full allowance of a claim in respect of any tax). The 30-day letter is 
a form letter which states the determination proposed to be made. It is 
accompanied by a copy of the examiner's report explaining the basis of 
the proposed determination. It suggests to the taxpayer that if the 
taxpayer concurs in the recommendation, he or she indicate agreement by 
executing and returning a waiver or acceptance. The preliminary letter 
also informs the taxpayer of appeal rights available if he or she 
disagrees with the proposed determination. If the taxpayer does not 
respond to the letter within 30 days, a statutory notice of deficiency 
will be issued or other appropriate action taken, such as the issuance 
of a notice of adjustment, the denial of a claim in income, profits, 
estate, and gift tax cases, or an appropriate adjustment of the tax 
liability or denial of a claim in excise and employment tax cases.
    (2) Protests. (i) No written protest or brief written statement of 
disputed issues is required to obtain an Appeals office conference in 
office interview and correspondence examination cases.
    (ii) No written protest or brief written statement of disputed 
issues is required to obtain an Appeals office conference in a field 
examination case if the total amount of proposed additional tax 
including penalties, proposed overassessment, or claimed refund (or, in 
an offer in compromise, the total amount of assessed tax, penalty, and 
interest sought to be compromised) is $2,500 or less for any taxable 
period.
    (iii) A written protest is required to obtain Appeals consideration 
in a field examination case if the total amount of proposed tax 
including penalties, proposed overassessment, or claimed refund (or, in 
an offer in compromise, the total amount of assessed tax, penalty, and 
interest sought to be compromised) exceeds $10,000 for any taxable 
period.
    (iv) A written protest is optional (although a brief written 
statement of disputed issues is required) to obtain Appeals 
consideration in a field examination case if for any taxable period the 
total amount of proposed additional tax including penalties, proposed 
overassessment, or claimed refund (or, in an offer in compromise, the 
total amount of assessed tax, penalty,

[[Page 21]]

and interest sought to be compromised) exceeds $2,500 but does not 
exceed $10,000.
    (v) Instructions for preparation of written protests are sent to the 
taxpayer with the transmittal (30-day) letter.
    (e) Claims for refund or credit. (1) After payment of the tax a 
taxpayer may (unless he has executed an agreement to the contrary) 
contest the assessment by filing a claim for refund or credit for all or 
any part of the amount paid, except as provided in section 6512 of the 
Code with respect to certain taxes determined by the Tax Court, the 
decision of which has become final. A claim for refund or credit of 
income taxes shall be made on Form 1040X, 1120X, or an amended income 
tax return, in accordance with Sec. 301.6402-3. In the case of taxes 
other than income taxes, a claim for refund or credit shall be made on 
Form 843. The appropriate forms are obtainable from district directors 
or directors of service centers. Generally, the claim, together with 
appropriate supporting evidence, must be filed at the location 
prescribed in Sec. 301.6402-2(a) (2). A claim for refund or credit must 
be filed within the applicable statutory period of limitation. In 
certain cases, a properly executed income tax return may operate as a 
claim for refund or credit of the amount of the overpayment disclosed by 
such return. (See Sec. 301.6402-3).
    (2) When claims for refund or credit are examined by the Examination 
Division, substantially the same procedure is followed (including appeal 
rights afforded to taxpayers) as when taxpayers' returns are originally 
examined. But see Sec. 601.108 for procedure for reviewing proposed 
overpayment exceeding $200,000 of income, estate, and gift taxes.
    (3) As to suits for refund, see Sec. 601.103 (c).
    (4) [Reserved]
    (5) There is also a special procedure applicable to applications for 
tentative carryback adjustments under section 6411 of the Code (consult 
Forms 1045 and 1139).
    (6) For special procedure applicable to claims for payment or credit 
in respect of gasoline used on a farm for farming purposes, for certain 
nonhighway purposes, for use in commercial aircraft, or used by local 
transit systems, see sections 39, 6420, and 6421 of the Code and Sec. 
601.402(c)(3). For special procedure applicable to claims for payment or 
credit in respect of lubricating oil used otherwise than in a highway 
motor vehicle, see sections 39 and 6424 of the Code and Sec. 
601.402(c)(3). For special procedure applicable for credit or refund of 
aircraft use tax, see section 6426 of the Code and Sec. 601.402(c)(4). 
For special procedure applicable for payment or credit in respect of 
special fuels not used for taxable purposes, see sections 39 and 6427 of 
the Code and Sec. 601.402(c)(5).
    (7) For special procedure applicable in certain cases to adjustment 
of overpayment of estimated tax by a corporation see section 6425 of the 
Code.
    (f) Interruption of examination procedure. The process of field 
examination and the course of the administrative procedure described in 
this section and in the following section may be interrupted in some 
cases by the imminent expiration of the statutory period of limitations 
for assessment of the tax. To protect the Government's interests in such 
a case, the district director of internal revenue or other designated 
officer may be required to dispatch a statutory notice of deficiency (if 
the case is within jurisdiction of U.S. Tax Court), or take other 
appropriate action to assess the tax, even though the case may be in 
examination status. In order to avoid interruption of the established 
procedure (except in estate tax cases), it is suggested to the taxpayer 
that he execute an agreement on Form 872 (or such other form as may be 
prescribed for this purpose). To be effective this agreement must be 
entered into by the taxpayer and the district director or other 
appropriate officer concerned prior to the expiration of the time 
otherwise provided for assessment. Such a consent extends the period for 
assessment of any deficiency, or any additional or delinquent tax, and 
extends the period during which the taxpayer may claim a refund or 
credit to a date 6 months after the agreed time of extension of the 
assessment period. When appropriate, a consent may be entered into 
restricted to certain issues.

[[Page 22]]

    (g) Fraud. The procedure described in this section does not apply in 
any case in which criminal prosecution is under consideration. Such 
procedure does obtain, however, in cases involving the assertion of the 
civil fraud penalty after the criminal aspects of the case have been 
closed.
    (h) Jeopardy assessments. If the district director believes that the 
assessment or collection of a tax will be jeorpardized by delay, he/she 
is authorized and required to assess the tax immediately, together with 
interest and other additional amounts provided by law, notwithstanding 
the restrictions on assessment or collection of income, estate, gift, 
generation-skipping transfer, or Chapter 41, 42, 43, or 44 taxes 
contained in section 6213(a) of the Code. A jeopardy assessment does not 
deprive the taxpayer of the right to file a petition with the Tax Court. 
Collection of a tax in jeopardy may be immediately enforced by the 
district director upon notice and demand. To stay collection, the 
taxpayer may file with the district director a bond equal to the amount 
for which the stay is desired. The taxpayer may request a review in the 
Appeals office of whether the making of the assessment was reasonable 
under the circumstances and whether the amount assessed or demanded was 
appropriate under the circumstances. See section 7429. This request 
shall be made, in writing, within 30 days after the earlier of--
    (1) The day on which the taxpayer is furnished the written statement 
described in section 7429(a)(1); or
    (2) The last day of the period within which this statement is 
required to be furnished.

An Appeals office conference will be granted as soon as possible and a 
decision rendered without delay.
    (i) Regional post review of examined cases. Regional Commissioners 
review samples of examined cases closed in their district offices to 
insure uniformity throughout their districts in applying Code 
provisions, regulations, and rulings, as well as the general policies of 
the Service.
    (j) Reopening of Cases Closed After Examination. (1) The Service 
does not reopen any case closed after examination by a district office 
or service center, to make an adjustment unfavorable to the taxpayer 
unless:
    (i) There is evidence of fraud, malfeasance, collusion, concealment, 
or misrepresentation of a material fact; or
    (ii) The prior closing involved a clearly defined substantial error 
based on an established Service position existing at the time of the 
previous examination; or
    (iii) Other circumstances exist which indicate failure to reopen 
would be a serious administrative omission.
    (2) All reopenings are approved by the Chief, Examination Division 
(District Director in streamlined districts), or by the Chief, 
Compliance Division, for cases under his/her jurisdiction. If an 
additional inspection of the taxpayer's books of account is necessary, 
the notice to the taxpayer required by Code section 7605(b) will be 
delivered to the taxpayer at the time the reexamination is begun.
    (k) Transfer of returns between districts. When request is received 
to transfer returns to another district for examination or the closing 
of a cased, the district director having jurisdiction may transfer the 
case, together with pertinent records to the district director of such 
other district. The Service will determine the time and place of the 
examination. In determining whether a transfer should be made, 
circumstances such as the following will be considered:
    (1) Change of the taxpayer's domicile, either before or during 
examination.
    (2) Discovery that taxpayer's books and records are kept in another 
district.
    (3) Change of domicile of an executor or administrator to another 
district before or during examination.
    (4) The effective administration of the tax laws.
    (l) Special procedures for crude oil windfall profit tax cases. For 
special procedures relating to crude oil windfall profit tax cases, see 
Sec. 601.405.

(5 U.S.C. 301 and 552) 80 Stat. 379 and 383; sec. 7805 of the Internal 
Revenue Code of 1954, 68A Stat. 917 (26 U.S.C. 7805))

[32 FR 15990, Nov. 22, 1967]

    Editorial Note: For Federal Register citations affecting Sec. 
601.105, see the List of CFR Sections Affected, which appears in the

[[Page 23]]

Finding Aids section of the printed volume and on GPO Access.



Sec. 601.106  Appeals functions.

    (a) General. (1)(i) There are provided in each region Appeals 
offices with office facilities within the region. Unless they otherwise 
specify, taxpayers living outside the United States use the facilities 
of the Washington, DC, Appeals Office of the Mid-Atlantic Region. 
Subject to the limitations set forth in subparagraphs (2) and (3) of 
this paragraph, the Commissioner has delegated to certain officers of 
the Appeals offices authority to represent the regional commissioner in 
those matters set forth in subdivisions (ii) through (v) of this 
subparagraph. If a statutory notice of deficiency was issued by a 
district director or the Director, Foreign Operations District, the 
Appeals office may waive jurisdiction to the director who issued the 
statutory notice during the 90-day (or 150-day) period for filing a 
petition with the Tax Court, except where criminal prosecution has been 
recommended and not finally disposed of, or the statutory notice 
includes the ad valorem fraud penalty. After the filing of a petition in 
the Tax Court, the Appeals office will have exclusive settlement 
jurisdiction, subject to the provisions of subparagraph (2) of this 
paragraph, for a period of 4 months (but no later than the receipt of 
the trial calendar in regular cases and no later than 15 days before the 
calendar call in S cases), over cases docketed in the Tax Court. Subject 
to the exceptions and limitations set forth in subparagraph (2) of this 
paragraph, there is also vested in the Appeals offices authority to 
represent the regional commissioner in his/her exclusive authority to 
settle (a) all cases docketed in the Tax Court and designated for trial 
at any place within the territory comprising the region, and (b) all 
docketed cases originating in the office of any district director 
situated within the region, or in which jurisdiction has been 
transferred to the region, which are designated for trial at Washington, 
DC, unless the petitioner resides in, and his/her books and records are 
located or can be made available in, the region which includes 
Washington, DC.
    (ii) Certain officers of the Appeals offices may represent the 
regional commissioner in his/her exclusive and final authority for the 
determination of--
    (a) Federal income, profits, estate (including extensions for 
payment under section 6161(a)(2)), gift, generation-skipping transfer, 
or Chapter 41, 42, 43, or 44 tax liability (whether before or after the 
issuance of a statutory notice of deficiency);
    (b) Employment or certain Federal excise tax liability; and
    (c) Liability for additions to the tax, additional amounts, and 
assessable penalties provided under Chapter 68 of the Code,

in any case originating in the office of any district director situated 
in the region, or in any case in which jurisdiction has been transferred 
to the region.
    (iii) The taxpayer must request Appeals consideration.
    (a) An oral request is sufficient to obtain Appeals consideration in 
(1) all office interview or correspondence examination cases or (2) a 
field examination case if the total amount of proposed additional tax 
including penalties, proposed overassessment, or claimed refund (or, in 
an offer in compromise, the total amount of assessed tax, penalty, and 
interest sought to be compromised) is $2,500 or less for any taxable 
period. No written protest or brief statement of disputed issues is 
required.
    (b) A brief written statement of disputed issues is required (a 
written protest is optional) to obtain Appeals consideration in a field 
examination case if the total amount of proposed additional tax 
including penalties, proposed overassessment, or claimed refund (or, in 
an offer in compromise, the total amount of assessed tax, penalty, and 
interest sought to be compromised) exceeds $2,500 but does not exceed 
$10,000 for any taxable period.
    (c) A written protest is required to obtain Appeals consideration in 
a field examination case if the total amount of proposed additional tax 
including penalties, proposed overassessment, or claimed refund (or, in 
an offer in compromise, the total amount of assessed tax, penalty, and 
interest sought to be compromised) exceeds $10,000 for any taxable 
period.

[[Page 24]]

    (d) A written protest is required to obtain Appeals consideration in 
all employee plan and exempt organization cases.
    (e) A written protest is required to obtain Appeals consideration in 
all partnership and S corporation cases.
    (iv) Sections 6659(a)(1) and 6671(a) provide that additions to the 
tax, additional amounts, penalties and liabilities (collectively 
referred to in this subdivision as ``penalties'') provided by Chapter 68 
of the Code shall be paid upon notice and demand and shall be assessed 
and collected in the same manner as taxes. Certain Chapter 68 penalties 
may be appealed after assessment to the Appeals office. This post-
assessment appeal procedure applies to all but the following Chapter 68 
penalties:
    (a) Penalties that are not subject to a reasonable cause or 
reasonable basis determination (examples are additions to the tax for 
failure to pay estimated income tax under sections 6654 and 6655);
    (b) Penalties that are subject to the deficiency procedures of 
subchapter B of Chapter 63 of the Code (because the taxpayer has the 
right to appeal such penalties, such as those provided under section 
6653 (a) and (b), prior to assessment):
    (c) Penalties that are subject to an administratively granted 
preassessment appeal procedure such as that provided in Sec. 1.6694-
2(a)(1) because taxpayers are able to protest such penalties prior to 
assessment;
    (d) The penalty provided in section 6700 for promoting abusive tax 
shelters (because the penalty is subject to the procedural rules of 
section 6703 which provides for an extension of the period of collection 
of the penalty when a person pays not less than 15 percent of the amount 
of such penalty); and
    (e) The 100 percent penalty provided under section 6672 (because the 
taxpayer has the opportunity to appeal this penalty prior to 
assessment).

The appeal may be made before or after payment, but shall be made before 
the filing of a claim for refund. Technical advice procedures are not 
applicable to an appeal made under this subdivision.
    (v) The Appeals office considers cases involving the initial or 
continuing recognition of tax exemption and foundation classification. 
See Sec. 601.201(n)(5) and (n)(6). The Appeals office also considers 
cases involving the initial or continuing determination of employee plan 
qualification under Subchapter D of Chapter 1 of the Code. See Sec. 
601.201(o)(6). However, the jurisdiction of the Appeals office in these 
cases is limited as follows:
    (a) In cases under the jurisdiction of a key district director (or 
the National Office) which involve an application for, or the revocation 
or modification of, the recognition of exemption or the determination of 
qualification, if the determination concerning exemption is made by a 
National Office ruling, or if National Office technical advice is 
furnished concerning exemption or qualification, the decision of the 
National Office is final. The organization/plan has no right of appeal 
to the Appeals office or any other avenue of administrative appeal. See 
Sec. 601.201(n)(i), (n)(6)(ii)(b), (n)(9)(viii)(a), (o)(2)(iii), and 
(o)(6)(i).
    (b) In cases already under the jurisdiction of an Appeals office, if 
the proposed disposition by that office is contrary to a National Office 
ruling concerning exemption, or to a National Office technical advice 
concerning exemption or qualification, issued prior to the case, the 
proposed disposition will be submitted, through the Office of the 
Regional Director of Appeals, to the Assistant Commissioner (Employee 
Plans and Exempt Organizations) or, in section 521 cases, to the 
Assistant Commissioner (Technical). The decision of the Assistant 
Commissioner will be followed by the Appeals office. See Sec. 
601.201(n)(5)(iii), (n)(6)(ii)(d), (n)(6)(iv), and (o)(6)(iii).
    (2) The authority described in subparagraph (1) of this paragraph 
does not include the authority to:
    (i) Negotiate or make a settlement in any case docketed in the Tax 
Court if the notice of deficiency, liability or other determination was 
issued by Appeals officials;
    (ii) Negotiate or make a settlement in any docketed case if the 
notice of deficiency, liability or other determination was issued after 
appeals consideration of all petitioned issues by

[[Page 25]]

the Employee Plans/Exempt Organizations function;
    (iii) Negotiate or make a settlement in any docketed case if the 
notice of deficiency, liability or final adverse determination letter 
was issued by a District Director and is based upon a National Office 
ruling or National Office technical advice in that case involving a 
qualification of an employee plan or tax exemption and/or foundation 
status of an organization (but only to the extent the case involves such 
issue);
    (iv) Negotiate or make a settlement if the case was docketed under 
Code sections 6110, 7477, or 7478;
    (v) Eliminate the ad valorem fraud penalty in any case in which the 
penalty was determined by the district office or service center office 
in connection with a tax year or period, or which is related to or 
affects such year or period, for which criminal prosecution against the 
taxpayer (or related taxpayer involving the same transaction) has been 
recommended to the Department of Justice for willful attempt to evade or 
defeat tax, or for willful failure to file a return, except upon the 
recommendation or concurrence of Counsel; or
    (vi) Act in any case in which a recommendation for criminal 
prosecution is pending, except with the concurrence of Counsel.
    (3) The authority vested in Appeals does not extend to the 
determination of liability for any excise tax imposed by Subtitle E or 
by Subchapter D of chapter 78, to the extent it relates to Subtitle E.
    (4) In cases under Appeals jurisdiction, the Appeals official has 
the authority to make and subscribe to a return under the provisions of 
section 6020 of the Code where taxpayer fails to make a required return.
    (b) Initiation of proceedings before Appeals. In any case in which 
the district director has issued a preliminary or ``30-day letter'' and 
the taxpayer requests Appeals consideration and files a written protest 
when required (see paragraph (c)(1) of Sec. Sec. 601.103, (c)(1) and 
(c)(2) of 601.105 and 601.507) against the proposed determination of tax 
liability, except as to those taxes described in paragraph (a)(3) of 
this section, the taxpayer has the right (and will be so advised by the 
district director) of administrative appeal to the Appeals organization. 
However, the appeal procedures do not extend to cases involving solely 
the failure or refusal to comply with the tax laws because of moral, 
religious, political, constitutional, conscientious, or similar grounds. 
Organizations such as labor unions and trade associations which have 
been examined by the district director to determine the amounts expended 
by the organization for purposes of lobbying, promotion or defeat of 
legislation, political campaigns, or propaganda related to those 
purposes are treated as ``taxpayers'' for the purpose of this right of 
administrative appeal. Thus, upon requesting appellate consideration and 
filing a written protest, when required, to the district director's 
findings that a portion of member dues is to be disallowed as a 
deduction to each member because expended for such purposes, the 
organization will be afforded full rights of administrative appeal to 
the Appeals activity similar to those rights afforded to taxpayers 
generally. After review of any required written protest by the district 
director, the case and its administrative record are referred to 
Appeals. Appeals may refuse to accept a protested nondocketed case where 
preliminary review indicates it requires further consideration or 
development. No taxpayer is required to submit a case to Appeals for 
consideration. Appeal is at the option of the taxpayer. After the 
issuance by the district director of a statutory notice of deficiency, 
upon the taxpayer's request, Appeals may take up the case for settlement 
and may grant the taxpayer a conference thereon.
    (c) Nature of proceedings before Appeals. Proceedings before Appeals 
are informal. Testimony under oath is not taken, although matters 
alleged as facts may be required to be submitted in the form of 
affidavits, or declared to be true under the penalties of perjury. 
Taxpayers may represent themselves or designate a qualified 
representative to act for them. See Subpart E of this part for 
conference and practice requirements. At any conference granted by 
Appeals on a nondocketed case, the district director will be represented 
if the Appeals official having settlement

[[Page 26]]

authority and the district director deem it advisable. At any such 
conference on a case involving the ad valorem fraud penalty for which 
criminal prosecution against the taxpayer (or a related taxpayer 
involving the same transaction) has been recommended to the Department 
of Justice for willful attempt to evade or defeat tax, or for willful 
failure to file a return, the District Counsel will be represented if he 
or she so desires.
    (d) Disposition and settlement of cases before Appeals--(1) In 
general. During consideration of a case, the Appeals office should 
neither reopen an issue as to which the taxpayer and the office of the 
district director are in agreement nor raise a new issue, unless the 
ground for such action is a substantial one and the potential effect 
upon the tax liability is material. If the Appeals raises a new issue, 
the taxpayer or the taxpayer's representative should be so advised and 
offered an opportunity for discussion prior to the taking of any formal 
action, such as the issuance of a statutory notice of deficiency.
    (2) Cases not docketed in the Tax Court. (i) If after consideration 
of the case by Appeals a satisfactory settlement of some or all the 
issues is reached with the taxpayer, the taxpayer will be requested to 
sign Form 870-AD or other appropriate agreement form waiving 
restrictions on the assessment and collection of any deficiency and 
accepting any overassessment resulting under the agreed settlement. In 
addition, in partially unagreed cases, a statutory notice of deficiency 
will be prepared and issued in accordance with subdivision (ii) of this 
subparagraph with respect to the unagreed issue or issues.
    (ii) If after consideration of the case by Appeals it is determined 
that there is a deficiency in income, profits, estate, gift tax, 
generation-skipping transfer, or Chapter 41, 42, 43, or 44 tax liability 
to which the taxpayer does not agree, a statutory notice of deficiency 
will be prepared and issued by Appeals. Officers of the Appeals office 
having authority for the administrative determination of tax liabilities 
referred to in paragraph (a) of this section are also authorized to 
prepare, sign on behalf of the Commissioner, and send to the taxpayer by 
registered or certified mail any statutory notice of deficiency 
prescribed in sections 6212 and 6861 of the Code, and in corresponding 
provisions of the Internal Revenue Code of 1939. Within 90 days, or 150 
days if the notice is addressed to a person outside of the States of the 
Union and the District of Columbia, after such a statutory notice of 
deficiency is mailed (not counting Saturday, Sunday, or a legal holiday 
in the District of Columbia as the last day), the taxpayer may file a 
petition with the U.S. Tax Court for a redetermination of the 
deficiency. In addition, if a claim for refund is disallowed in full or 
in part by the Appelate Division and the taxpayer does not sign Form 
2297, Appeals will prepare the statutory notice of claim disallowance 
and send it to the taxpayer by certified mail (or registered mail if the 
taxpayer is outside the United States), with a carbon copy to the 
taxpayer's representative by regular mail, if appropriate. In any other 
unagreed case, the case and its administrative file will be forwarded to 
the appropriate function with directions to take action with respect to 
the tax liability determined in Appeals. Administrative appeal 
procedures will apply to 100-percent penalty cases, except where an 
assessment is made because of Chief Counsel's request to support a 
third-party action in a pending refund suit. See Rev. Proc. 69-26.
    (iii) Taxpayers desiring to further contest unagreed excise (other 
than those under Chapters 41 through 44 of the Code) and employment tax 
cases and 100-percent penalty cases must pay the additional tax (or 
portion thereof of divisible taxes) when assessed, file claim for refund 
within the applicable statutory period of limitations (ordinarily 3 
years from time return was required to be filed or 2 years from payment, 
whichever expires later), and upon disallowance of claim or after 6 
months from date claim was filed, file suit in U.S. District Court or 
U.S. Claims Court. Suits for refund of taxes paid are under the 
jurisdiction of the Department of Justice.
    (3) Cases docketed in the Tax Court. (i) If the case under 
consideration in Appeals is docketed in the Tax Court and

[[Page 27]]

agreement is reached with the taxpayer with respect to the issues 
involved, the disposition of the case is effected by a stipulation of 
agreed deficiency or overpayment to be filed with the Tax Court and in 
conformity with which the Court will enter its order.
    (ii) If the case under consideration in Appeals is docketed in the 
Tax Court and the issues remain unsettled after consideration and 
conference in Appeals, the case will be referred to the appropriate 
district counsel for the region for defense of the tax liability 
determined.
    (iii) If the deficiency notice in a case docketed in the Tax Court 
was not issued by the Appeals office and no recommendation for criminal 
prosecution is pending, the case will be referred by the district 
counsel to the Appeals office for settlement as soon as it is at issue 
in the Tax Court. The settlement procedure shall be governed by the 
following rules:
    (a) The Appeals office will have exclusive settlement jurisdiction 
for a period of 4 months over certain cases docketed in the Tax Court. 
The 4-month period will commence at the time Appeals receives the case 
from Counsel, which will be after the case is at issue. Appeals will 
arrange settlement conferences in such cases within 45 days of receipt 
of the case. In the event of a settlement, Appeals will prepare and 
forward to Counsel the necessary computations and any stipulation 
decisions secured. Counsel will prepare any needed settlement documents 
for execution by the parties and filing with the Tax Court. Appeals will 
also have authority to settle less than all the issues in the case and 
to refer the unsettled issues to Counsel for disposition. In the event 
of a partial settlement, Appeals will inform Counsel of the agreement of 
the petitioner(s) and Appeals may secure and forward to Counsel a 
stipulation covering the agreed issues. Counsel will, if necessary, 
prepare documents reflecting settlement of the agreed issues for 
execution by the parties and filing with the Tax Court at the 
appropriate time.
    (b) At the end of the 4-month period, or before that time if Appeals 
determines the case is not susceptible of settlement, the case will be 
returned to Counsel. Thereafter, Counsel will have exclusive authority 
to dispose of the case. If, at the end of the 4-month period, there is 
substantial likelihood that a settlement of the entire case can be 
effected in a reasonable period of time, Counsel may extend Appeals 
settlement jurisdiction for a period not to exceed 60 days, but not 
beyond the date of the receipt of a trial calendar upon which the case 
appears. Extensions beyond the 50-day period or after the event 
indicated will be granted only with the personal approval of regional 
counsel and will be made only in those cases in which the probability of 
settlement of the case in its entirety by Appeals clearly outweighs the 
need to commence trial preparation.
    (c) During the period of Appeals jurisdiction, Appeals will make 
available such files and information as may be necessary for Counsel to 
take any action required by the Court or which is in the best interests 
of the Government. When a case is referred by Counsel to Appeals, 
Counsel may indicate areas of needed factual development or areas of 
possible technical uncertainties. In referring a case to Counsel, 
Appeals will furnish its summary of the facts and the pertinent legal 
authorities.
    (d) The Appeals office may specify that proposed Counsel settlements 
be referred back to Appeals for its views. Appeals may protest the 
proposed Counsel settlements. If Counsel disagrees with Appeals, the 
Regional Counsel will determine the disposition of the cases.
    (e) If an offer is received at or about the time of trial in a case 
designated by the Appeals office for settlement consultation, Counsel 
will endeavor to have the case placed on a motions calendar to permit 
consultation with and review by Appeals in accordance with the foregoing 
procedures.
    (f) For issues in docketed and nondocketed cases pending with 
Appeals which are related to issues in docketed cases over which Counsel 
has jurisdiction, no settlement offer will be accepted by either Appeals 
or Counsel unless both agree that the offer is acceptable. The protest 
procedure will be available to Appeals and regional counsel will have 
authority to resolve the

[[Page 28]]

issue with respect to both the Appeals and Counsel cases. If settlement 
of the docketed case requires approval by regional counsel or Chief 
Counsel, the final decision with respect to the issues under the 
jurisdiction of both Appeals and Counsel will be made by regional 
counsel or Chief Counsel. See Rev. Proc. 79-59.
    (g) Cases classified as ``Small Tax'' cases by the Tax Court are 
given expeditious consideration because such cases are not included on a 
Trial Status Request. These cases are considered by the Court as ready 
for placing on a trial calendar as soon as the answer has been filed and 
are given priority by the Court for trial over other docketed cases. 
These cases are designated by the Court as small tax cases upon request 
of petitioners and will include letter ``S'' as part of the docket 
number.
    (e) Transfer and centralization of cases. (1) An Appeals office is 
authorized to transfer settlement jurisdiction in a non-docketed case or 
in an excise or employment tax case to another region, if the taxpayer 
resides in and the taxpayer's books and records are located (or can be 
made available) in such other region. Otherwise, transfer to another 
region requires the approval of the Director of the Appeals Division.
    (2) An Appeals office is authorized to transfer settlement 
jurisdiction in a docketed case to another region if the location for 
the hearing by the Tax Court has been set in such other region, except 
that if the place of hearing is Washington, DC, settlement jurisdiction 
shall not be transferred to the region in which Washington, DC, is 
located unless the petitioner resides in and the petitioner's books and 
records are located (or can be made available) in that region. 
Otherwise, transfer to another region requires the approval of the 
Director of the Appeals Division. Likewise, the Chief Counsel has 
corresponding authority to transfer the jurisdiction, authority, and 
duties of the regional counsel for any region to the regional counsel of 
another region within which the case has been designated for trial 
before the Tax Court.
    (3) Should a regional commissioner determine that it would better 
serve the interests of the Government, he or she may, by order in 
writing, withdraw any case not docketed before the Tax Court from the 
jurisdiction of the Appeals office, and provide for its disposition 
under his or her personal direction.
    (f) Conference and practice requirements. Practice and conference 
procedure before Appeals is governed by Treasury Department Circular 230 
as amended (31 CFR Part 10), and the requirements of Subpart E of this 
part. In addition to such rules but not in modification of them, the 
following rules are also applicable to practice before Appeals:
    (1) Rule I. An exaction by the U.S. Government, which is not based 
upon law, statutory or otherwise, is a taking of property without due 
process of law, in violation of the Fifth Amendment to the U.S. 
Constitution. Accordingly, an Appeals representative in his or her 
conclusions of fact or application of the law, shall hew to the law and 
the recognized standards of legal construction. It shall be his or her 
duty to determine the correct amount of the tax, with strict 
impartiality as between the taxpayer and the Government, and without 
favoritism or discrimination as between taxpayers.
    (2) Rule II. Appeals will ordinarily give serious consideration to 
an offer to settle a tax controversy on a basis which fairly reflects 
the relative merits of the opposing views in light of the hazards which 
would exist if the case were litigated. However, no settlement will be 
made based upon nuisance value of the case to either party. If the 
taxpayer makes an unacceptable proposal of settlement under 
circumstances indicating a good faith attempt to reach an agred 
disposition of the case on a basis fair both to the Government and the 
taxpayer, the Appeals official generally should give an evaluation of 
the case in such a manner as to enable the taxpayer to ascertain the 
kind of settlement that would be recommended for acceptance. Appeals may 
defer action on or decline to settle some cases or issues (for example, 
issues on which action has been suspended nationwide) in order to 
achieve greater uniformity and enhance overall voluntary compliance with 
the tax laws.

[[Page 29]]

    (3) Rule III. Where the Appeals officer recommends acceptance of the 
taxpayer's proposal of settlement, or, in the absence of a proposal, 
recommends action favorable to the taxpayer, and said recommendation is 
disapproved in whole or in part by a reviewing officer in Appeals the 
taxpayer shall be so advised and upon written request shall be accorded 
a conference with such reviewing officer. The Appeals office may 
disregard this rule where the interest of the Government would be 
injured by delay, as for example, in a case involving the imminent 
expiration of the period of limitations or the dissipation of assets.
    (4) Rule IV. Where the Appeals official having settlement authority 
and the district director deem it advisable, the district director may 
be represented at any Appeals conferences on a nondocketed case. This 
rule is also applicable to the Director, Foreign Operations District in 
the event his or her office issued the preliminary or ``30-day letter''.
    (5) Rule V. In order to bring an unagreed income, profits, estate, 
gift, or Chapter 41, 42, 43, or 44 tax case in prestatutory notice 
status, an employment or excise tax case, a penalty case, an Employee 
Plans and Exempt Organization case, a termination of taxable year 
assessment case, a jeopardy assessment case, or an offer in compromise 
before the Appeals office, the taxpayer or the taxpayer's representative 
should first request Appeals consideration and, when required, file with 
the district office (including the Foreign Operations District) or 
service center a written protest setting forth specifically the reasons 
for the refusal to accept the findings. If the protest includes a 
statement of facts upon which the taxpayer relies, such statement should 
be declared, to be true under the penalties of perjury. The protest and 
any new facts, law, or arguments presented therewith will be reviewed by 
the receiving office for the purpose of deciding whether further 
development or action is required prior to referring the case to 
Appeals. Where Appeals has an issue under consideration it may, with the 
concurrence of the taxpayer, assume jurisdiction in a related case, 
after the office having original jurisdiction has completed any 
necessary action. The Director, Appeals Division, may authorize the 
regional Appeals office to accept jurisdiction (after any necessary 
action by office having original jurisdiction) in specified classes of 
cases without written protests provided written or oral requests for 
Appeals consideration are submitted by or for each taxpayer.
    (6) Rule VI. A taxpayer cannot withhold evidence from the district 
director of internal revenue and expect to introduce it for the first 
time before Appeals, at a conference in nondocketed status, without 
being subject to having the case returned to the district director for 
reconsideration. Where newly discovered evidence is submitted for the 
first time to Appeals, in a case pending in nondocketed status, that 
office, in the reasonable exercise of its discretion, may transmit same 
to the district director for his or her consideration and comment.
    (7) Rule VII. Where the taxpayer has had the benefit of a conference 
before the Appeals office in the pre statutory notice status, or where 
the opportunity for such a conference was accorded but not availed of, 
there will be no conference granted before the Appeals office in the 90-
day status after the mailing of the statutory notice of deficiency, in 
the absence of unusual circumstances.
    (8) Rule VIII. In cases not docketed in the United States Tax Court 
on which a conference is being conducted by the Appeals office, the 
district counsel may be requested to attend and to give legal advice in 
the more difficult cases, or on matters of legal or litigating policy.
    (9) Rule IX--Technical advice from the National Office--(i) 
Definition and nature of technical advice. (a) As used in this 
subparagraph, ``technical advice'' means advice or guidance as to the 
interpretation and proper application of internal revenue laws, related 
statutes, and regulations, to a specific set of facts, furnished by the 
National Office upon request of an Appeals office in connection with the 
processing and consideration of a nondocketed case. It is furnished as a 
means of assisting Service personnel in closing cases and

[[Page 30]]

establishing and maintaining consistent holdings in the various regions. 
It does not include memorandum on matters of general technical 
application furnished to Appeals offices where the issues are not raised 
in connection with the consideration and handling of a specific 
taxpayer's case.
    (b) The provisions of this subparagraph do not apply to a case under 
the jurisdiction of a district director or the Bureau of Alcohol, 
Tobacco, and Firearms, to Employee Plans, Exempt Organization, or 
certain penalty cases being considered by an Appeals office, or to any 
case previously considered by an Appeals office. The technical advice 
provisions applicable to cases under the jurisdiction of a district 
director, other than Employee Plans and Exempt Organization cases, are 
set forth in Sec. 601.105(b)(5). The technical advice provisions 
applicable to Employee Plans and Exempt Organization cases are set forth 
in Sec. 601.201(n)(9). Technical advice may not be requested with 
respect to a taxable period if a prior Appeals disposition of the same 
taxable period of the same taxpayer's case was based on mutual 
concessions (ordinarily with a form 870-AD, Offer of Waiver of 
Restrictions on Assessment and Collection of Deficiency in Tax and of 
Acceptance of Overassessment). However, technical advice may be 
requested by a district director on issues previously considered in a 
prior Appeals disposition, not based on mutual concessions, of the same 
taxable periods of the same taxpayer with the concurrence of the Appeals 
office that had the case.
    (c) The consideration or examination of the facts relating to a 
request for a determination letter is considered to be in connection 
with the consideration and handling of a taxpayer's case. Thus, an 
Appeals office may, under this subparagraph, request technical advice 
with respect to the consideration of a request for a determination 
letter. The technical advice provisions applicable to a request for a 
determination letter in Employee Plans and Exempt Organization cases are 
set forth in Sec. 601.201(n)(9).
    (d) If an Appeals office is of the opinion that a ruling letter 
previously issued to a taxpayer should be modified or revoked and it 
requests the National Office to reconsider the ruling, the reference of 
the matter to the National Office is treated as a request for technical 
advice. The procedures specified in subdivision (iii) of this 
subparagraph should be followed in order that the National Office may 
consider the recommendation. Only the National Office can revoke a 
ruling letter. Before referral to the National Office, the Appeals 
office should inform the taxpayer of its opinion that the ruling letter 
should be revoked. The Appeals office, after development of the facts 
and consideration of the taxpayer's arguments, will decide whether to 
recommend revocation of the ruling to the National Office. For 
procedures relating to a request for a ruling, see Sec. 601.201.
    (e) The Assistant Commissioner (Technical), acting under a 
delegation of authority from the Commissioner of Internal Revenue, is 
exclusively responsible for providing technical advice in any issue 
involving the establishment of basic principles and rules for the 
uniform interpretation and application of tax laws in cases under this 
subparagraph. This authority has been largely redelegated to subordinate 
officials.
    (ii) Areas in which technical advice may be requested. (a) Appeals 
offices may request technical advice on any technical or procedural 
question that develops during the processing and consideration of a 
case. These procedures are applicable as provided in subdivision (i) of 
this subparagraph.
    (b) As provided in Sec. 601.105(b)(5) (ii)(b) and (iii)(a), 
requests for technical advice should be made at the earliest possible 
stage of the examination process. However, if identification of an issue 
on which technical advice is appropriate is not made until the case is 
in Appeals, a decision to request such advice (in nondocketed cases) 
should be made prior to or at the first conference.
    (c) Subject to the provisions of (b) of this subdivision, Appeals 
Offices are encouraged to request technical advice on any technical or 
procedural question arising in connection with a case described in 
subdivision (i) of this subparagraph which cannot be resolved on

[[Page 31]]

the basis of law, regulations, or a clearly applicable revenue ruling or 
other precedent issued by the National Office.
    (iii) Requesting technical advice. (a) It is the responsibility of 
the Appeals Office to determine whether technical advice is to be 
requested on any issue being considered. However, while the case is 
under the jurisdiction of the Appeals Office, a taxpayer or his/her 
representative may request that an issue be referred to the National 
Office for technical advice on the grounds that a lack of uniformity 
exists as to the disposition of the issue, or that the issue is so 
unusual or complex as to warrant consideration by the National Office. 
While taxpayers are encouraged to make written requests setting forth 
the facts, law, and argument with respect to the issue, and reason for 
requesting National Office advice, a taxpayer may make the request 
orally. If, after considering the taxpayer's request, the Appeals 
Officer is of the opinion that the circumstances do not warrant referral 
of the case to the National Office, he/she will so advice the taxpayer. 
(See subdivision (iv) of this subparagraph for taxpayer's appeal rights 
where the Appeals Officer declines to request technical advice.)
    (b) When technical advice is to be requested, whether or not upon 
the request of the taxpayer, the taxpayer will be so advised, except as 
noted in (j) of this subdivision. If the Appeals Office initiates the 
action, the taxpayer will be furnished a copy of the statement of the 
pertinent facts and the question or questions proposed for submission to 
the National Office. The request for advice should be so worded as to 
avoid possible misunderstanding, in the National Office, of the facts or 
of the specific point or points at issue.
    (c) After receipt of the statement of facts and specific questions, 
the taxpayer will be given 10 calendar days in which to indicate in 
writing the extent, if any, to which he/she may not be in complete 
agreement. An extension of time must be justified by the taxpayer in 
writing and approved by the Chief, Appeals Office. Every effort should 
be made to reach agreement as to the facts and specific points at issue. 
If agreement cannot be reached, the taxpayer may submit, within 10 
calendar days after receipt of notice from the Appeals Office, a 
statement of his/her understanding as to the specific point or points at 
issue which will be forwarded to the National Office with the request 
for advice. An extension of time must be justified by the taxpayer in 
writing and approved by the Chief, Appeals Office.
    (d) If the taxpayer initiates the action to request advice, and his/
her statement of the facts and point or points at issue are not wholly 
acceptable to the Appeals Office, the taxpayer will be advised in 
writing as to the areas of disagreement. The taxpayer will be given 10 
calendar days after receipt of the written notice to reply to such 
notice. An extension of time must be justified by the taxpayer in 
writing and approved by the Chief, Appeals Office. If agreement cannot 
be reached, both the statements of the taxpayer and the Appeals Office 
will be forwarded to the National Office.
    (e) (1) In the case of requests for technical advice, the taxpayer 
must also submit, within the 10-day period referred to in (c) and (d) of 
this subdivision, whichever is applicable (relating to agreement by the 
taxpayer with the statement of facts and points submitted in connection 
with the request for technical advice), the statement described in (f) 
of this subdivision of proposed deletions pursuant to section 6110(c) of 
the Code. If the statement is not submitted, the taxpayer will be 
informed by the Appeals Office that the statement is required. If the 
Appeals Office does not receive the statement within 10 days after the 
taxpayer has been informed of the need for the statement, the Appeals 
Office may decline to submit the request for technical advice. If the 
Appeals Office decides to request technical advice in a case where the 
taxpayer has not submitted the statement of proposed deletions, the 
National Office will make those deletions which in the judgment of the 
Commissioner are required by section 6110(c) of the Code.
    (2) The requirements included in this subparagraph relating to the 
submission of statements and other material with respect to proposed 
deletions to

[[Page 32]]

be made from technical advice memoranda before public inspection is 
permitted to take place do not apply to requests for any document to 
which section 6104 of the Code applies.
    ( f ) In order to assist the Internal Revenue Service in making the 
deletions required by section 6110(c) of the Code, from the text of 
technical advice memoranda which are open to public inspection pursuant 
to section 6110(a) of the Code, there must accompany requests for such 
technical advice either a statement of the deletions proposed by the 
taxpayer, or a statement that no information other than names, 
addresses, and taxpayer identifying numbers need be deleted. Such 
statements shall be made in a separate document. The statement of 
proposed deletions shall be accompanied by a copy of all statements of 
facts and supporting documents which are submitted to the National 
Office pursuant to (c) or (d) of this subdivision, on which shall be 
indicated, by the use of brackets, the material which the taxpayer 
indicates should be deleted pursuant to section 6110(c) of the Code. The 
statement of proposed deletions shall indicate the statutory basis for 
each proposed deletion. The statement of proposed deletions shall not 
appear or be referred to anywhere in the request for technical advice. 
If the taxpayer decides to request additional deletions pursuant to 
section 6110(c) of the Code prior to the time the National Office 
replies to the request for technical advice, additional statements may 
be submitted.
    (g) If the taxpayer has not already done so, he/she may submit a 
statement explaining his/her position on the issues, citing precedents 
which the taxpayer believes will bear on the case. This statement will 
be forwarded to the National Office with the request for advice. If it 
is received at a later date, it will be forwarded for association with 
the case file.
    (h) At the time the taxpayer is informed that the matter is being 
referred to the National Office, he/she will also be informed of the 
right to a conference in the National Office in the event an adverse 
decision is indicated, and will be asked to indicate whether a 
conference is desired.
    (i) Generally, prior to replying to the request for technical 
advice, the National Office shall inform the taxpayer orally or in 
writing of the material likely to appear in the technical advice 
memorandum which the taxpayer proposed be deleted but which the Internal 
Revenue Service determined should not be deleted. If so informed, the 
taxpayer may submit within 10 days any further information, arguments, 
or other material in support of the position that such material be 
deleted. The Internal Revenue Service will attempt, if feasible, to 
resolve all disagreements with respect to proposed deletions prior to 
the time the National Office replies to the request for technical 
advice. However, in no event shall the taxpayer have the right to a 
conference with respect to resolution of any disagreements concerning 
material to be deleted from the text of the technical advice memorandum, 
but such matters may be considered at any conference otherwise scheduled 
with respect to the request.
    (j) The provisions of (a) through (i) of this subdivision, relating 
to the referral of issues upon request of the taxpayer, advising 
taxpayers of the referral of issues, the submission of proposed 
deletions, and the granting of conferences in the National Office, are 
not applicable to technical advice memoranda described in section 6110 
(g)(5)(A) of the Code, relating to cases involving criminal or civil 
fraud investigations and jeopardy or termination assessments. However, 
in such cases, the taxpayer shall be allowed to provide the statement of 
proposed deletions to the National Office upon the completion of all 
proceedings with respect to the investigations or assessments, but prior 
to the date on which the Commissioner mails the notice pursuant to 
section 6110 (f)(1) of the Code of intention to disclose the technical 
advice memorandum.
    (k) Form 4463, Request for Technical Advice, should be used for 
transmitting requests for technical advice to the National Office.
    (iv) Appeal by taxpayers of determinations not to seek technical 
advice. (a) If the taxpayer has requested referral of an issue before an 
Appeals Office to the National Office for technical advice,

[[Page 33]]

and after consideration of the request, the Appeals Officer is of the 
opinion that the circumstances do not warrant such referral, he/she will 
so advise the taxpayer.
    (b) The taxpayer may appeal the decision of the Appeals Officer not 
to request technical advice by submitting to that official, within 10 
calendar days after being advised of the decision, a statement of the 
facts, law, and arguments with respect to the issue, and the reasons why 
the taxpayer believes the matter should be referred to the National 
Office for advice. An extension of time must be justified by the 
taxpayer in writing and approved by the Chief, Appeals Office.
    (c) The Appeals Officer will submit the statement of the taxpayer to 
the chief, Appeals Office, accompanied by a statement of the officer's 
reasons why the issue should not be referred to the National Office. The 
Chief will determine, on the basis of the statements submitted, whether 
technical advice will be requested. If the Chief determines that 
technical advice is not warranted, that official will inform the 
taxpayer in writing that he/she proposes to deny the request. In the 
letter to the taxpayer the Chief will (except in unusual situations 
where such action would be prejudicial to the best interests of the 
Government) state specifically the reasons for the proposed denial. The 
taxpayer will be given 15 calendar days after receipt of the letter in 
which to notify the Chief whether the taxpayer agrees with the proposed 
denial. The taxpayer may not appeal the decision of the Chief, Appeals 
Office not to request technical advice from the National Office. 
However, if the taxpayer does not agree with the proposed denial, all 
data relating to the issue for which technical advice has been sought, 
including the taxpayer's written request and statements, will be 
submitted to the National Office, Attention: Director, Appeals Division, 
for review. After review in the National Office, the Appeals Office will 
be notified whether the proposed denial is approved or disapproved.
    (d) While the matter is being reviewed in the National Office, the 
Appeals Office will suspend action on the issue (except where the delay 
would prejudice the Government's interests) until it is notified of the 
National Office decision. This notification will be made within 30 days 
after receipt of the data in the National Office. The review will be 
solely on the basis of the written record and no conference will be held 
in the National Office.
    (v) Conference in the National Office. (a) If, after a study of the 
technical advice request, it appears that advice adverse to the taxpayer 
should be given and a conference has been requested, the taxpayer will 
be notified of the time and place of the conference. If conferences are 
being arranged with respect to more than one request for advice 
involving the same taxpayer, they will be so scheduled as to cause the 
least inconvenience to the taxpayer. The conference will be arranged by 
telephone, if possible, and must be held within 21 calendar days after 
contact has been made. Extensions of time will be granted only if 
justified in writing by the taxpayer and approved by the appropriate 
Technical branch chief.
    (b) A taxpayer is entitled, as a matter of right, to only one 
conference in the National Office unless one of the circumstances 
discussed in (c) of this subdivision exists. This conference will 
usually be held at the branch level in the appropriate division 
(Corporation Tax Division or Individual Tax Division) in the Office of 
the Assistant Commissioner (Technical), and will usually be attended by 
a person who has authority to act for the branch chief. In appropriate 
cases the Appeals Officer may also attend the conference to clarify the 
facts in the case. If more than one subject is discussed at the 
conference, the discussion constitutes a conference with respect to each 
subject. At the request of the taxpayer or the taxpayer's 
representative, the conference may be held at an earlier stage in the 
consideration of the case than the Service would ordinarily designate. A 
taxpayer has no ``right'' of appeal from an action of a branch to the 
director of a division or to any other National Office official.
    (c) In the process of review of a holding proposed by a branch, it 
may appear that the final answer will involve a reversal of the branch 
proposal with

[[Page 34]]

a result less favorable to the taxpayer. Or it may appear that an 
adverse holding proposed by a branch will be approved, but on a new or 
different issue or on different grounds than those on which the branch 
decided the case. Under either of these circumstances, the taxpayer or 
the taxpayer's representative will be invited to another conference. The 
provisions of this subparagraph limiting the number of conferences to 
which a taxpayer is entitled will not foreclose inviting a taxpayer to 
attend further conferences when, in the opinion of National Office 
personnel, such need arises. All additional conferences of this type 
discussed are held only at the invitation of the Service.
    (d) It is the responsibility of the taxpayer to furnish to the 
National Office, within 21 calendar days after the conference, a written 
record of any additional data, line of reasoning, precedents, etc., that 
were proposed by the taxpayer and discussed at the conference but were 
not previously or adequately presented in writing. Extensions of time 
will be granted only if justified in writing by the taxpayer and 
approved by the appropriate Technical branch chief. Any additional 
material and a copy thereof should be addressed to and sent to the 
National Office which will forward the copy to the appropriate Appeals 
Office. The Appeals Office will be requested to give the matter prompt 
attention, will verify the additional facts and data, and will comment 
on it to the extent deemed appropriate.
    (e) A taxpayer or the taxpayer's representative desiring to obtain 
information as to the status of the case may do so by contacting the 
following offices with respect to matters in the areas of their 
responsibility:

 
                                              Telephone numbers, (Area
                 Official                             Code 202)
 
Director, Corporation Tax Division          566-4504, 566-4505.
Director, Individual Tax Division           566-3767 or 566-3788.
 

    (vi) Preparation of technical advice memorandum by the National 
Office. (a) Immediately upon receipt in the National Office, the 
technical employee to whom the case is assigned will analyze the file to 
ascertain whether it meets the requirements of subdivision (iii) of this 
subparagraph. If the case is not complete with respect to any 
requirement in subdivision (iii) (a) through (d) of this subparagraph, 
appropriate steps will be taken to complete the file. If any request for 
technical advice does not comply with the requirements of subdivision 
(iii)(e) of this subparagraph, relating to the statement of proposed 
deletions, the National Office will make those deletions from the 
technical advice memorandum which in the judgment of the Commissioner 
are required by section 6110(c) of the Code.
    (b) If the taxpayer has requested a conference in the National 
Office, the procedures in subdivision (v) of this subparagraph will be 
followed.
    (c) Replies to requests for technical advice will be addressed to 
the Appeals office and will be drafted in two parts. Each part will 
identify the taxpayer by name, address, identification number, and year 
or years involved. The first part (hereafter called the ``technical 
advice memorandum'') will contain (1) a recitation of the pertinent 
facts having a bearing on the issue; (2) a discussion of the facts, 
precedents, and reasoning of the National Office; and (3) the 
conclusions of the National Office. The conclusions will give direct 
answers, whenever possible, to the specific questions of the Appeals 
office. The discussion of the issues will be in such detail that the 
Appeals office is apprised of the reasoning underlying the conclusion. 
There shall accompany the technical advice memorandum a notice, pursuant 
to section 6110(f)(1) of the Code, of intention to disclose the 
technical advice memorandum (including a copy of the version proposed to 
be open to public inspection and notations of third party communications 
pursuant to section 6110(d) of the Code) which the Appeals office shall 
forward to the taxpayer at such time that it furnishes a copy of the 
technical advice memorandum to the taxpayer pursuant to (e) of this 
subdivision and subdivision (vii)(b) of this subparagraph.
    (d) The second part of the reply will consist of a transmittal 
memorandum. In the unusual cases it will serve as a vehicle for 
providing the Appeals office

[[Page 35]]

administrative information or other information which, under the 
nondisclosure statutes, or for other reasons, may not be discussed with 
the taxpayer.
    (e) It is the general practice of the Service to furnish a copy of 
the technical advice memorandum to the taxpayer after it has been 
adopted by the Appeals office. However, in the case of technical advice 
memorandums described in section 6110(g)(5)(A) of the Code, relating to 
cases involving criminal or civil fraud investigations and jeopardy or 
termination assessments, a copy of the technical advice memorandum shall 
not be furnished the taxpayer until all proceedings with respect to the 
investigations or assessments are completed.
    (f) After receiving the notice pursuant to section 6110(f)(1) of the 
Code of intention to disclose the technical advice memorandum, the 
taxpayer, if desiring to protest the disclosure of certain information 
in the memorandum, must, within 20 days after the notice is mailed, 
submit a written statement identifying those deletions not made by the 
Internal Revenue Service which the taxpayer believes should have been 
made. The taxpayer shall also submit a copy of the version of the 
technical advice memorandum proposed to be open to public inspection on 
which the taxpayer indicates, by the use of brackets, the deletions 
proposed by the taxpayer but which have not been made by the Internal 
Revenue Service. Generally, the Internal Revenue Service will not 
consider the deletion of any material which the taxpayer did not, prior 
to the time when the National Office sent its reply to the request for 
technical advice to the Appeals office, propose be deleted. The Internal 
Revenue Service shall, within 20 days after receipt of the response by 
the taxpayer to the notice pursuant to section 6110(f)(1) of the Code, 
mail to the taxpayer its final administrative conclusion regarding the 
deletions to be made.
    (vii) Action on technical advice in Appeals offices. (a) Unless the 
Chief, Appeals Office, feels that the conclusions reached by the 
National Office in a technical advice memorandum should be reconsidered 
and promptly requests such reconsideration, the Appeals office will 
proceed to process the taxpayer's case taking into account the 
conclusions expressed in the technical advice memorandum. The effect of 
technical advice on the taxpayer's case is set forth in subdivision 
(viii) of this subparagraph.
    (b) The Appeals office will furnish the taxpayer a copy of the 
technical advice memorandum described in subdivision (vi)(c) of this 
subparagraph and the notice pursuant to section 6110(f)(1) of the Code 
of intention to disclose the technical advice memorandum (including a 
copy of the version proposed to be open to public inspection and 
notations of third-party communications pursuant to section 6110(d) of 
the Code). The preceding sentence shall not apply to technical advice 
memorandums involving civil fraud or criminal investigations, or 
jeopardy or termination assessments, as described in subdivision 
(iii)(j) of this subparagraph (except to the extent provided in 
subdivision (vi)(e) of this subparagraph) or to documents to which 
section 6104 of the Code applies.
    (c) In those cases in which the National Office advises the Appeals 
office that it should not furnish a copy of the technical advice 
memorandum to the taxpayer, the Appeals office will so inform the 
taxpayer if he/she requests a copy.
    (viii) Effect of technical advice. (a) A technical advice memorandum 
represents an expression of the views of the Service as to the 
application of law, regulations, and precedents to the facts of a 
specific case, and is issued primarily as a means of assisting Service 
officials in the closing of the case involved.
    (b) Except in rare or unusual circumstances, a holding in a 
technical advice memorandum that is favorable to the taxpayer is applied 
retroactively. Moreover, since technical advice, as described in 
subdivision (i) of this subparagraph, is issued only on closed 
transactions, a holding in a technical advice memorandum that is adverse 
to the taxpayer is also applied retroactively unless the Assistant 
Commissioner or Deputy Assisitant Commissioner (Technical) exercises the 
discretionary authority under section 7805(b) of the Code to limit the 
retroactive effect of the holding. Likewise, a

[[Page 36]]

holding in a technical advice memorandum that modifies or revokes a 
holding in a prior technical advice memorandum will also be applied 
retroactively, with one exception. If the new holding is less favorable 
to the taxpayer, it will generally not be applied to the period in which 
the taxpayer relied on the prior holding in situations involving 
continuing transactions of the type described in Sec. 601.201(l)(7) and 
Sec. 601.201(l)(8).
    (c) The Appeals office is bound by technical advice favorable to the 
taxpayer. However, if the technical advice is unfavorable to the 
taxpayer, the Appeals office may settle the issue in the usual manner 
under existing authority. For the effect of technical advice in Employee 
Plans and Exempt Organization cases see Sec. 601.201(n)(9)(viii).
    (d) In connection with section 446 of the Code, taxpayers may 
request permission from the Assistant Commissioner (Technical) to change 
a method of accounting and obtain a 10-year (or less) spread of the 
resulting adjustments. Such a request should be made prior to or at the 
first Appeals conference. The Appeals office has authority to allow a 
change and the resulting spread without referring the case to Technical.
    (e) Technical advice memorandums often form the basis for revenue 
rulings. For the description of revenue rulings and the effect thereof, 
see Sec. Sec. 601.601(d)(2)(i)(a) and 601.601(d)(2)(v).
    (f) An Appeals office may raise an issue in a taxable period, even 
though technical advice may have been asked for and furnished with 
regard to the same or a similar issue in any other taxable period.
    (g) Limitation on the jurisdiction and function of Appeals--(1) 
Overpayment of more than $200,000. If Appeals determines that there is 
an overpayment of income, war profits, excess profits, estate, 
generation-skipping transfer, or gift tax, or any tax imposed by 
chapters 41 through 44, including penalties and interest, in excess of 
$200,000, such determination will be considered by the Joint Committee 
on Taxation, See Sec. 601.108
    (2) Offers in compromise. For jurisdiction of Appeals with respect 
to offers in compromise of tax liabilities, see Sec. 601.203.
    (3) Closing agreements. For jurisdiction of Appeals with respect to 
closing agreements under section 7121 of the Code relating to any 
internal revenue tax liability, see Sec. 601.202.
    (h) Reopening closed cases not docketed in the Tax Court. (1) A case 
not docketed in the Tax Court and closed by Appeals on the basis of 
concessions made by both the Appeals and the taxpayer will not be 
reopened by action initiated by the Service unless the disposition 
involved fraud, malfeasance, concealment or misrepresentation of 
material fact, or an important mistake in mathematical calculations, and 
then only with the approval of the Regional Director of Appeals.
    (2) Under certain unusual circumstances favorable to the taxpayer, 
such as retroactive legislation, a case not docketed in the Tax Court 
and closed by Appeals on the basis of concessions made by both Appeals 
and the taxpayer may be reopened upon written application from the 
taxpayer, and only with the approval of the Regional Director of 
Appeals. The processing of an application for a tentative carryback 
adjustment or of a claim for refund or credit for an overassessment (for 
a year involved in the prior closing) attributable to a claimed 
deduction or credit for a carryback provided by law, and not included in 
a previous Appeals determination, shall not be considered a reopening 
requiring approval. A subsequent assessment of an excessive tentative 
allowance shall likewise not be considered such a reopening. The 
Director of the Appeals Division may authorize, in advance, the 
reopening of similar classes of cases where legislative enactments or 
compelling administrative reasons require such advance approval.
    (3) A case not docketed in the Tax Court and closed by Appeals on a 
basis not involving concessions made by both Appeals and the taxpayer 
will not be reopened by action initiated by the Service unless the 
disposition involved fraud, malfeasance, concealment or 
misrepresentation of material fact, an important mistake in mathematical 
calculation, or such other circumstance that indicates that failure

[[Page 37]]

to take such action would be a serious administrative omission, and then 
only with the approval of the Regional Director of Appeals.
    (4) A case not docketed in the Tax Court and closed by the Appeals 
on a basis not involving concessions made by both Appeals and the 
taxpayer may be reopened by the taxpayer by any appropriate means, such 
as by the filing of a timely claim for refund.
    (i) Special procedures for crude oil windfall profit tax cases. For 
special procedures relating to crude oil windfall profit tax cases, see 
Sec. 601.405.

((5 U.S.C. 301 and 552) 80 Stat. 379 and 383; sec. 7805 of the Internal 
Revenue Code of 1954, 68A Stat. 917 (26 U.S.C. 7805))

[32 FR 15990, Nov. 22, 1967]

    Editorial Note: For Federal Register citations affecting Sec. 
601.106, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 601.107  Criminal investigation functions.

    (a) General. Each district has a Criminal Investigation function 
whose mission is to encourage and achieve the highest possible degree of 
voluntary compliance with the internal revenue laws by: Enforcing the 
statutory sanctions applicable to income, estate, gift, employment, and 
certain excise taxes through the investigation of possible criminal 
violations of such laws and the recommendation (when warranted) of 
prosecution and/or assertion of the 50 percent ad valorem addition to 
the tax; developing information concerning the extent of criminal 
violations of all Federal tax laws (except those relating to alcohol, 
tobacco, narcotics, and firearms); measuring the effectiveness of the 
investigation process; and providing protection of persons and of 
property and other enforcement coordination as required.
    (b) Investigative procedure. (1) A witness when questioned in an 
investigation conducted by the Criminal Investigation Division may have 
counsel present to represent and advise him. Upon request, a copy of an 
affidavit or transcript of a question and answer statement will be 
furnished a witness promptly, except in circumstances deemed by the 
Regional Commissioner to necessitate temporarily withholding a copy.
    (2) A taxpayer who may be the subject of a criminal recommendation 
will be afforded a district Criminal Investigation conference when he 
requests one or where the Chief, Criminal Investigation Division, makes 
a determination that such a conference will be in the best interests of 
the Government. At the conference, the IRS representative will inform 
the taxpayer by a general oral statement of the alleged fraudulent 
features of the case, to the extent consistent with protecting the 
Government's interests, and, at the same time, making available to the 
taxpayer sufficient facts and figures to acquaint him with the basis, 
nature, and other essential elements of the proposed criminal charges 
against him.
    (c) Processing of cases after investigation. The Chief, Criminal 
Investigation Division, shall ordinarily notify the subject of an 
investigation and his authorized representative, if any, when he 
forwards a case to the Regional Counsel with a recommendation for 
prosecution. The rule will not apply if the case is with a United States 
Attorney.

[33 FR 17235, Nov. 21, 1968, as amended at 38 FR 9227, Apr. 12, 1973; 39 
FR 8917, Mar. 7, 1974; 43 FR 53029, Nov. 15, 1978]



Sec. 601.108  Review of overpayments exceeding $200,000.

    (a) General. Section 6405(a) of the Code provides that no refund or 
credit of income, war profits, excess profits, estate, or gift taxes or 
any tax imposed by Chapters 41 through 44, including penalties and 
interest, in excess of $200,000 may be made until after the expiration 
of 30 days from the date a report is made to the Joint Committee on 
Taxation. Taxpayers, in cases requiring review by the Joint Committee, 
are afforded the same appeal rights as other taxpayers. In general, 
these cases follow regular procedures, except for preparation of reports 
to and review by the Joint Committee.
    (b) Reports to Joint Committee. In any case in which no protest is 
made to Appeals and no petition docketed in the Tax Court, the report to 
the Joint

[[Page 38]]

Committee is prepared by a Joint Committee Coordinator, who is an 
Examination Division regional specialist. In cases in which a protest 
has been made, the report to the Joint Committee is prepared by an 
Appeals officer; in cases in which a petition is docketed, either an 
Appeals officer or a Counsel attorney prepares the report, depending on 
the circumstances.
    (c) Procedure after report to Joint Committee. After compliance with 
section 6405 of the Code, the case is processed for issuance of a 
certificate of overassessment, and payment or credit of any overpayment. 
If the final determination involves a rejection of a claimed overpayment 
in whole or in part, a statutory notice of disallowance will be sent by 
certified or registered mail to the taxpayer, except where the taxpayer 
has filed a written waiver of such notice of disallowance.

[32 FR 15990, Nov. 22, 1967, as amended at 42 FR 46519, Sept. 16, 1977; 
43 FR 44503, Sept. 28, 1978; 43 FR 53030, Nov. 15, 1978; 45 FR 7255, 
Feb. 1, 1980]



Sec. 601.109  Bankruptcy and receivership cases.

    (a) General. (1) Upon the adjudication of bankruptcy of any taxpayer 
in any liquidating proceeding, the filing or (where approval is required 
by the Bankruptcy Act) the approval of a petition of, or the approval of 
a petition against, any taxpayer in any other proceeding under the 
Bankruptcy Act or the appointment of a receiver for any taxpayer in any 
receivership proceeding before a court of the United States or of any 
State or Territory or of the District of Columbia, the assessment of any 
deficiency in income, profits, estate, or gift tax (together with all 
interests, additional amounts, or additions to the tax provided for by 
law) shall be made immediately. See section 6871 of the Code. In such 
cases the restrictions imposed by section 6213(a) of the Code upon 
assessments are not applicable. (In the case of an assignment for the 
benefit of creditors, the assessment will be made under section 6861, 
relating to jeopardy assessments. See Sec. 601.105(h).) Cases in which 
immediate assessment will be made include those of taxpayers in 
receivership or in bankruptcy, reorganization, arrangement, or wage 
earner proceedings, under Chapters I to VII, section 77, Chapters X, XI, 
XII, and XIII of the Bankruptcy Act. The term ``approval of a petition 
in any other proceeding under the Bankruptcy Act'' includes the filing 
of a petition under Chapters XI to XIII of the Bankruptcy Act with a 
court of competent jurisdiction. A fiduciary in any proceeding under the 
Bankruptcy Act (including a trustee, receiver, debtor in possession, or 
other person designated by the court as in control of the assets or 
affairs of a debtor) or a receiver in any receivership proceeding may be 
required, as provided in regulations prescribed under section 6036 of 
the Code, to give notice in writing to the district director of his 
qualification as such. Failure on the part of such fiduciary in a 
receivership proceeding or a proceeding under the Bankruptcy Act to give 
such notice, when required, results in the suspension of the running of 
the period of limitations on the making of assessments from the date of 
the institution of the proceeding to the date upon which such notice is 
received by the district director, and for an additional 30 days 
thereafter. However, in no case where the required notice is not given 
shall the suspension of the running of the period of limitations on 
assessment exceed 2 years. See section 6872 of the Code.
    (2) Except in cases where departmental instructions direct 
otherwise, the district director will, promptly after ascertaining the 
existence of any outstanding Federal tax liability against a taxpayer in 
any proceeding under the Bankruptcy Act or receivership proceeding, and 
in any event within the time limited by appropriate provisions of law or 
the appropriate orders of the court in which such proceeding is pending, 
file a proof of claim covering such liability in the court in which the 
proceeding is pending. Such a claim may be filed regardless of whether 
the unpaid taxes involved have been assessed. Whenever an immediate 
assessment is made of any income, estate, or gift tax after the 
commencement of a proceeding the district director will send to the 
taxpayer notice and demand for payment together with a copy of such 
claim.

[[Page 39]]

    (b) Procedure in office of district director. (1) While the district 
director is required by section 6871 of the Code to make immediate 
assessment of any deficiency in income, estate, or gift taxes, such 
assessment is not made as a jeopardy assessment (see paragraph (h) of 
Sec. 601.105), and the provisions of section 6861 of the Code do not 
apply to any assessment made under section 6871. Therefore, the notice 
of deficiency provided for in section 6861(b) will not be mailed to the 
taxpayer. Nevertheless, Letter 1005 (DO) will be prepared and addressed 
in the name of the taxpayer, immediately followed by the name of the 
trustee, receiver, debtor in possession, or other person designated to 
be in control of the assets or affairs of the debtor by the court in 
which the bankruptcy or receivership proceeding is pending. Such letter 
will state how the deficiency was computed, advise that within 30 days a 
written protest under penalties of perjury may be filed with the 
district director showing wherein the deficiency is claimed to be 
incorrect, and advise that upon request an Appeals office conference 
will be granted with respect to such deficiency. If, after protest is 
filed (in triplicate), and an Appeals office conference is held, 
adjustment appears necessary in the deficiency, appropriate action will 
be taken. Except where the interests of the Government require 
otherwise, Letters 1005 (DO) are issued by the office of the district 
director.
    (2) The immediate assessment required by section 6871 of the Code 
represents an exception to the usual restrictions on the assessment of 
Federal income, estate, and gift taxes. Since there are no restrictions 
on the assessment of Federal excise or employment taxes, immediate 
assessment of such taxes will be made in any case where section 6871 of 
the Code would require immediate assessment of income, estate, or gift 
taxes.
    (3) If after such assessment a claim for abatement is filed and such 
claim is accompanied by a request in writing for a conference, an 
Appeals office conference will be granted. Ordinarily, only one 
conference will be held, unless it develops that additional information 
can be furnished which has a material bearing upon the tax liability, in 
which event the conference will be continued to a later date.
    (c) Procedure before the Appeals office. If an income, estate, or 
gift tax case is under consideration by an Appeals office (whether 
before or after issuance of a statutory notice of deficiency) at the 
time of either: (i) The adjudication of bankruptcy of the taxpayer in 
any liquidating proceeding; (ii) the filing with a court of competent 
jurisdiction or (where approval is required by the Bankruptcy Act) the 
approval of a petition of, or against, the taxpayer in any other 
proceeding under the Bankruptcy Act; or (iii) the appointment of any 
receiver, then the case will be returned to the district director for 
assessment (if not previously made), for issuance of the Letter 1005 
(DO), and for filing proof of claim in the proceeding. Excise and 
employment tax cases pending in the Appeals office at such time will 
likewise be returned to the district director for assessment (if not 
previously made) and for filing proof of claim in the proceeding. A 
petition for redetermination of a deficiency may not be filed in the Tax 
Court after the adjudication of bankruptcy, the filing or (where 
approval is required by the Bankruptcy Act) the approval of a petition 
of, or the approval of a petition against, the taxpayer in any other 
bankruptcy proceeding, or the appointment of a receiver. See section 
6871(b) of the Code. However, the Tax Court is not deprived of 
jurisdiction where the adjudication of bankruptcy, the filing or (where 
approval is required by the Bankruptcy Act) the approval of a petition 
of, or the approval of a petition against, the taxpayer in any other 
bankruptcy proceeding, or the appointment of a receiver, occurred after 
the filing of the petition. In such a case, the jurisdiction of the 
bankruptcy or receivership court and the Tax Court is concurrent.
    (d) Priority of claims. Under section 3466 of the Revised Statutes 
and section 3467 of the Revised Statutes, as amended, taxes are entitled 
to priority over other claims therein stated and the receiver or other 
person designated as in control of the assets or affairs of the debtor 
by the court in which the receivership proceeding is pending may

[[Page 40]]

be held personally liable for failure on his part to protect the 
priority of the Government respecting taxes of which he has notice. 
Under section 64 of the Bankruptcy Act, taxes may be entitled to 
priority over other claims therein stated and the trustee, receiver, 
debtor in possession or other person designated as in control of the 
assets or affairs of the debtor by the court in which the bankruptcy 
proceeding is pending may be held personally liable for any failure on 
his part to protect a priority of the Government respecting taxes of 
which he has notice and which are entitled to priority under the 
Bankruptcy Act. Sections 77(e), 199, 337(2), 455, and 659(6) of the 
Bankruptcy Act also contain provisions with respect to the rights of the 
United States relative to priority of payment. Bankruptcy courts have 
jurisdiction under the Bankruptcy Act to determine all disputes 
regarding the amount and the validity of tax claims against a bankrupt 
or a debtor in a proceeding under the Bankruptcy Act. A receivership 
proceeding or an assignment for the benefit of creditors does not 
discharge any portion of a claim of the United States for taxes and any 
portion of such claim allowed by the court in which the proceeding is 
pending and which remains unsatisfied after the termination of the 
proceeding shall be collected with interest in accordance with law. A 
bankruptcy proceeding under Chapters I through VII of the Bankruptcy Act 
does discharge that portion of a claim of the United States which became 
legally due and owning more than three years preceding bankruptcy, with 
certain exceptions provided in the Bankruptcy Act as does a proceeding 
under section 77 or Chapter X of the Bankruptcy Act. Any taxes which are 
dischargeable under the Bankruptcy Act which remain unsatisfied after 
the termination of the proceeding may be collected only from exempt or 
abandoned property.

[32 FR 15990, Nov. 22, 1967, as amended at 33 FR 6821, May 4, 1968; 35 
FR 15917, Oct. 9, 1970; 43 FR 44503, Sept. 28, 1978; 45 FR 7255, Feb. 1, 
1980]



              Subpart B_Rulings and Other Specific Matters



Sec. 601.201  Rulings and determinations letters.

    (a) General practice and definitions. (1) It is the practice of the 
Internal Revenue Service to answer inquiries of individuals and 
organizations, whenever appropriate in the interest of sound tax 
administration, as to their status for tax purposes and as to the tax 
effects of their acts or transactions. One of the functions of the 
National Office of the Internal Revenue Service is to issue rulings in 
such matters. If a taxpayer's request for a ruling concerns an action 
that may have an impact on the environment, compliance by the Service 
with the requirements of the National Environmental Policy Act of 1969 
(Pub. L. 91-190) may result in delaying issuing the ruling. Accordingly, 
taxpayers requesting rulings should take this factor into account. 
District directors apply the statutes, regulations, Revenue Rulings, and 
other precedents published in the Internal Revenue Bulletin in the 
determination of tax liability, the collection of taxes, and the 
issuance of determination letters in answer to taxpayers' inquiries or 
requests. For purposes of this section any reference to district 
director or district office also includes, where appropriate, the Office 
of the Director, Office of International Operations.
    (2) A ruling is a written statement issued to a taxpayer or his 
authorized representative by the National Office which interprets and 
applies the tax laws to a specific set of facts. Rulings are issued only 
by the National Office. The issuance of rulings is under the general 
supervision of the Assistant Commissioner (Technical) and has been 
largely redelegated to the Director, Corporation Tax Division and 
Director, Individual Tax Division.
    (3) A determination letter is a written statement issued by a 
district director in response to a written inquiry by an individual or 
an organization that applies to the particular facts involved, the 
principles and precedents previously announced by the National Office. A 
determination letter is issued only where a determination can be

[[Page 41]]

made on the basis of clearly established rules as set forth in the 
statute, Treasury decision, or regulation, or by a ruling, opinion, or 
court decision published in the Internal Revenue Bulletin. Where such a 
determination cannot be made, such as where the question presented 
involves a novel issue or the matter is excluded from the jurisdiction 
of a district director by the provisions of paragraph (c) of this 
section, a determination letter will not be issued. However, with 
respect to determination letters in the pension trust area, see 
paragraph (o) of this section.
    (4) An opinion letter is a written statement issued by the National 
Office as to the acceptability of the form of a master or prototype plan 
and any related trust or custodial account under sections 401 and 501(a) 
of the Internal Revenue Code of 1954.
    (5) An information letter is a statement issued either by the 
National Office or by a district director which does no more than call 
attention to a well-established interpretation or principle of tax law, 
without applying it to a specific set of facts. An information letter 
may be issued when the nature of the request from the individual or the 
organization suggests that it is seeking general information, or where 
the request does not meet all the requirements of paragraph (e) of this 
section, and it is believed that such general information will assist 
the individual or organization.
    (6) A Revenue Ruling is an official interpretation by the Service 
which has been published in the Internal Revenue Bulletin. Revenue 
Rulings are issued only by the National Office and are published for the 
information and guidance of taxpayers, Internal Revenue Service 
officials, and others concerned.
    (7) A closing agreement, as the term is used herein, is an agreement 
between the Commissioner of Internal Revenue or his delegate and a 
taxpayer with respect to a specific issue or issues entered into 
pursuant to the authority contained in section 7121 of the Internal 
Revenue Code. Such a closing agreement is based on a ruling which has 
been signed by the Commissioner or his delegate and in which it is 
indicated that a closing agreement will be entered into on the basis of 
the holding of the ruling letter. Closing agreements are final and 
conclusive except upon a showing of fraud, malfeasance, or 
misrepresentation of material fact. They may be entered into where it is 
advantageous to have the matter permanently and conclusively closed, or 
where a taxpayer can show good and sufficient reasons for an agreement 
and the Government will sustain no disadvantage by its consummation. In 
appropriate cases, taxpayers may be required to enter into a closing 
agreement as a condition to the issuance of a ruling. Where in a single 
case, closing agreements are requested on behalf of each of a number of 
taxpayers, such agreements are not entered into if the number of such 
taxpayers exceed 25. However, in a case where the issue and holding are 
identical as to all of the taxpayers and the number of taxpayers is in 
excess of 25, a Mass Closing Agreement will be entered into with the 
taxpayer who is authorized by the others to represent the entire group. 
See, for example, Rev. Proc. 78-15, 1978-2 C.B. 488, and Rev. Proc. 78-
16, 1978-2 C.B. 489.
    (b) Rulings issued by the National Office. (1) In income and gift 
tax matters and matters involving taxes imposed under Chapter 42 of the 
Code, the National Office issues rulings on prospective transactions and 
on completed transactions before the return is filed. However, rulings 
will not ordinarily be issued if the identical issue is present in a 
return of the taxpayer for a prior year which is under active 
examination or audit by a district office, or is being considered by a 
branch office of the Appellate Division. The National Office issues 
rulings involving the exempt status of organizations under section 501 
or 521 of the Code, only to the extent provided in paragraph (n) of this 
section, Revenue Procedure 72-5, Internal Revenue Bulletin No. 1972-1, 
19, and Revenue Procedure 68-13, C.B. 1968-1, 764. The National Office 
issues rulings as to the foundation status of certain organizations 
under sections 509(a) and 4942(j) (3) of the Code only to the extent 
provided in paragraph (r) of this section. The National Office issues 
rulings involving qualification of plans under section 401 of the Code 
only to the extent provided in paragraph (o) of this

[[Page 42]]

section. The National Office issues opinion letters as to the 
acceptability of the form of master or prototype plans and any related 
trusts or custodial accounts under sections 401 and 501(a) of the Code 
only to the extent provided in paragraphs (p) and (q) of this section. 
The National Office will not issue rulings with respect to the 
replacement of involuntarily converted property, even though replacement 
has not been made, if the taxpayer has filed a return for the taxable 
year in which the property was converted. However, see paragraph (c)(6) 
of this section as to the authority of district directors to issue 
determination letters in this connection.
    (2) In estate tax matters, the National Office issues rulings with 
respect to transactions affecting the estate tax of a decedent before 
the estate tax return is filed. It will not rule with respect to such 
matters after the estate tax return has been filed, nor will it rule on 
matters relating to the application of the estate tax to property or the 
estate of a living person.
    (3) In employment and excise tax matters (except taxes imposed under 
Chapter 42 of the Code), the National Office issues rulings with respect 
to prospective transactions and to completed transactions either before 
or after the return is filed. However, the National Office will not 
ordinarily rule with respect to an issue, whether related to a 
prospective or a completed transaction, if it knows or has reason to 
believe that the same or an identical issue is before any field office 
(including any branch office of the Appellate Division) in connection 
with an examination or audit of the liability of the same taxpayer for 
the same or a prior period.
    (4) The Service will not issue rulings to business, trade, or 
industrial associations or to other similar groups relating to the 
application of the tax laws to members of the group. However, rulings 
may be issued to such groups or associations relating to their own tax 
status or liability provided such tax status or liability is not an 
issue before any field office (including any branch office of the 
Appellate Division) in connection with an examination or audit of the 
liability of the same taxpayer for the same or a prior period.
    (5) Pending the adoption of regulations (either temporary or final) 
that reflect the provisions of any Act, consideration will be given to 
the issuance of rulings under the conditions set forth below.
    (i) If an inquiry presents an issue on which the answer seems to be 
clear from an application of the provisions of the statute to the facts 
described, a ruling will be issued in accordance with usual procedures.
    (ii) If an inquiry presents an issue on which the answer seems 
reasonably certain but not entirely free from doubt, a ruling will be 
issued only if it is established that a business emergency requires a 
ruling or that unusual hardship will result from failure to obtain a 
ruling.
    (iii) If an inquiry presents an issue that cannot be reasonably 
resolved prior to the issuance of regulations, a ruling will not be 
issued.
    (iv) In any case in which the taxpayer believes that a business 
emergency exists or that an unusual hardship will result from failure to 
obtain a ruling, he should submit with the request a separate letter 
setting forth the facts necessary for the Service to make a 
determination in this regard. In this connection, the Service will not 
deem a ``business emergency'' to result from circumstances within the 
control of the taxpayer such as, for example, scheduling within an 
inordinately short time the closing date for a transaction or a meeting 
of the board of directors or the shareholders of a corporation.
    (c) Determination letters issued by district directors. (1) In 
income and gift tax matters, and in matters involving taxes imposed 
under Chapter 42 of the Code, district directors issue determination 
letters in response to taxpayers' written requests submitted to their 
offices involving completed transactions which affect returns over which 
they have audit jurisdiction, but only if the answer to the question 
presented is covered specifically by statute, Treasury Decision or 
regulation, or specifically by a ruling, opinion, or court decision 
published in the Internal

[[Page 43]]

Revenue Bulletin. A determination letter will not usually be issued with 
respect to a question which involves a return to be filed by the 
taxpayer if the identical question is involved in a return or returns 
already filed by the taxpayer. District directors may not issue 
determination letters as to the tax consequence of pro spective or 
proposed transactions, except as provided in subparagraphs (5) and (6) 
of this paragraph.
    (2) In estate and gift tax matters, district directors issue 
determination letters in response to written requests submitted to their 
offices affecting the estate tax returns of decedents that will be 
audited by their offices, but only if the answer to the questions 
presented are specifically covered by statute, Treasury Decision or 
regulation, or by a ruling, opinion, or court decision published in the 
Internal Revenue Bulletin. District directors will not issue 
determination letters relating to matters involving the application of 
the estate tax to property or the estate of a living person.
    (3) In employment and excise tax matters (except excise taxes 
imposed under Chapter 42 of the Code), district directors issue 
determination letters in response to written requests from taxpayers who 
have filed or who are required to file returns over which they have 
audit jurisdiction, but only if the answers to the questions presented 
are specifically covered by statute, Treasury Decision or regulation, or 
a ruling, opinion, or court decision published in the Internal Revenue 
Bulletin. Because of the impact of these taxes upon the business 
operation of the taxpayer and because of special problems of 
administration both to the Service and to the taxpayer, district 
directors may take appropriate action in regard to such requests, 
whether they relate to completed or prospective transactions or returns 
previously filed or to be filed.
    (4) Notwithstanding the provisions of subparagraphs (1), (2), and 
(3), of this paragraph, a district director will not issue a 
determination letter in response to an inquiry which presents a question 
specifically covered by statute, regulations, rulings, etc., published 
in the Internal Revenue Bulletin, where (i) it appears that the taxpayer 
has directed a similar inquiry to the National Office, (ii) the 
identical issue involving the same taxpayer is pending in a case before 
the Appellate Division, (iii) the determination letter is requested by 
an industry, trade association, or similar group, or (iv) the request 
involves an industrywide problem. Under no circumstances will a district 
director issue a determination letter unless it is clearly indicated 
that the inquiry is with regard to a taxpayer or taxpayers who have 
filed or are required to file returns over which his office has or will 
have audit jurisdiction. Notwithstanding the provisions of subparagraph 
(3) of this paragraph, a district director will not issue a 
determination letter on an employment tax question when the specific 
question involved has been or is being considered by the Central Office 
of the Social Security Administration. Nor will district directors issue 
determination letters on excise tax questions if a request is for a 
determination of a constructive sales price under section 4216(b) or 
4218(e) of the Code. However, the National Office will issue rulings in 
this area. See paragraph (d)(2) of this section.
    (5) District directors issue determination letters as to the 
qualification of plans under sections 401 and 405(a) of the Code, and as 
to the exempt status of related trusts under section 501 of the Code, to 
the extent provided in paragraphs (o) and (q) of this section. Selected 
district directors also issue determination letters as to the 
qualification of certain organizations for exemption from Federal income 
tax under sections 501 and 521 of the Code, to the extent provided in 
paragraph (n) of this section. Selected district directors also issue 
determination letters as to the qualification of certain organizations 
for foundation status under sections 509(a) and 4942(j)(3) of the Code, 
to the extent provided in paragraph (r) of this section.
    (6) District directors issue determination letters with regard to 
the replacement of involuntarily converted property under section 1033 
of the Code even though the replacement has not been made, if the 
taxpayer has filed his income tax return for the year in

[[Page 44]]

which the property was involuntarily converted.
    (7) A request received by a district director with respect to a 
question involved in an income, estate, or gift tax return already filed 
will, in general, be considered in connection with the examination of 
the return. If response is made to such inquiry prior to an examination 
or audit, it will be considered a tentative finding in any subsequent 
examination or audit of the return.
    (d) Discretionary authority to issue rulings and determination 
letters. (1) It is the practice of the Service to answer inquiries of 
individuals and organizations, whenever appropriate in the interest of 
sound tax administration, as to their status for tax purposes and the 
tax effect of their acts or transactions.
    (2) There are, however, certain areas where, because of the 
inherently factual nature of the problem involved, or for other reasons, 
the Service will not issue rulings or determination letters. A ruling or 
determination letter is not issued on alternative plans of proposed 
transactions or on hypothetical situations. A specific area or a list of 
these areas is published from time to time in the Internal Revenue 
Bulletin. Such list is not all inclusive since the Service may decline 
to issue rulings or determination letters on other questions whenever 
warranted by the facts or circumstances of a particular case. The 
National Office and district directors may, when it is deemed 
appropriate and in the best interest of the Service, issue information 
letters calling attention to well-established principles of tax law.
    (3) The National Office will issue rulings in all cases on 
prospective or future transactions when the law or regulations require a 
determination of the effect of a proposed transaction for tax purposes, 
as in the case of a transfer coming within the provisions of sections 
1491 and 1492 of the Code, or an exchange coming within the provisions 
of section 367 of the Code. The National Office will issue rulings in 
all cases involving the determination of a constructive sales price 
under section 4216(b) or 4218(e) of the Code.
    (e) Instructions to taxpayers. (1) A request for a ruling or a 
determination letter is to be submitted in duplicate if (i) more than 
one issue is presented in the request or (ii) a closing agreement is 
requested with respect to the issue presented. There shall accompany the 
request a declaration, 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 requested ruling or determination 
letter are true, correct, and complete''. The declaration must accompany 
requests that are postmarked or hand delivered to the Internal Revenue 
Service after October 31, 1976. The declaration must be signed by the 
person or persons on whose behalf the request is made.
    (2) Each request for a ruling or a determination letter must contain 
a complete statement of all relevant facts relating to the transaction. 
Such facts include names, addresses, and taxpayer identifying numbers of 
all interested parties; the location of the district office that has or 
will have audit jurisdiction over the return or report of each party; a 
full and precise statement of the business reasons for the transaction; 
and a carefully detailed description of the transaction. In addition, 
true copies of all contracts, wills, deeds, agreements, instruments, and 
other documents involved in the transaction must be submitted with the 
request. However, relevant facts reflected in documents submitted must 
be included in the taxpayer's statement and not merely incorporated by 
reference, and must be accompanied by an analysis of their bearing on 
the issue or issues, specifying the pertinent provisions. (The term 
``all interested parties'' is not to be construed as requiring a list of 
all shareholders of a widely held corporation requesting a ruling 
relating to a reorganization, or a list of employees where a large 
number may be involved in a plan.) The request must contain a statement 
whether, to the best of the knowledge of the taxpayer or his 
representative, the identical issue is being considered by any field 
office of the Service in connection with an active examination or audit 
of a tax return of the taxpayer already filed or is being considered by 
a branch office of the Appellate Division. Where

[[Page 45]]

the request pertains to only one step of a larger integrated 
transaction, the facts, circumstances, etc., must be submitted with 
respect to the entire transaction. The following list contains 
references to revenue procedures for advance ruling requests under 
certain sections of the Code.
    (i) For ruling requests under section 103 of the Code, see Rev. 
Proc. 79-4, 1979-1 C.B. 483, as amplified by Rev. Proc. 79-12, 1979-1 
C.B. 492. Revenue Procedure 79-12 sets forth procedures for submitting 
ruling requests to which sections 103 and 7478 of the Code apply.
    (ii) For ruling requests under section 367 of the Code, see Rev. 
Proc. 68-23, 1968-1 C.B. 821, as amplified by Rev. Proc. 76-20, 1976-1 
C.B. 560, Rev. Proc. 77-5, 1977-1 C.B. 536, Rev. Proc. 78-27, 1978-2 
C.B. 526, and Rev. Proc. 78-28, 1978-2 C.B. 526. Revenue Procedure 68-23 
contains guidelines for taxpayers and their representatives in 
connection with issuing rulings under section 367. Revenue Procedure 76-
20 explains the effect of Rev. Rul. 75-561, 1975-2 C.B. 129, on 
transactions described in section 3.03(1)(c) of Rev. Proc. 68-23. 
Revenue Procedure 77-5 sets forth procedures for submitting ruling 
requests under section 367, and the administrative remedies available to 
a taxpayer within the Service after such rulings have been issued. 
Revenue Procedure 78-27 relates to the notice requirement set forth in 
the setion 367(b) temporary regulations. Revenue Procedure 78-28 relates 
to the timely filing of a section 367(a) ruling request.
    (iii) For ruling requests under section 351 of the Code, see Rev. 
Proc. 73-10, 1973-1 C.B. 760, and Rev. Proc. 69-19, 1969-2 C.B. 301. 
Revenue Procedure 73-10 sets forth the information to be included in the 
ruling request. Revenue Procedure 69-19 sets forth the conditions and 
circumstances under which an advance ruling will be issued under section 
367 of the Code that an agreement which purports to furnish technical 
know-how in exchange for stock is a transfer of property within the 
meaning of section 351.
    (iv) For ruling requests under section 332, 334(b)(1), or 334(b)(2) 
of the Code, see Rev. Proc. 73-17, 1973-2 C.B. 465. Revenue Procedure 
73-17 sets forth the information to be included in the ruling request.
    (v) See Rev. Proc. 77-30, 1977-2 C.B. 539, and Rev. Proc. 78-18, 
1978-2 C.B. 491, relating to rules for the issuance of an advance ruling 
that a proposed sale of employer stock to a related qualified defined 
contribution plan of deferred compensation will be a sale of the stock 
rather than a distribution of property.
    (vi) For ruling requests under section 302 or section 311 of the 
Code, see Rev. Proc. 73-35, 1973-2 C.B. 490. Revenue Procedure 73-35 
sets forth the information to be included in the ruling request.
    (vii) For ruling requests under section 337 of the Code (and related 
section 331) see Rev. Proc. 75-32, 1975-2 C.B. 555. Revenue Procedure 
75-32 sets forth the information to be included in the ruling request.
    (viii) For ruling requests under section 346 of the Code (and 
related sections 331 and 336), see Rev. Proc. 73-36, 1973-2 C.B. 496. 
Revenue Procedure 73-36 sets forth the information to be included in the 
ruling request.
    (ix) For ruling requests under section 355 of the Code, see Rev. 
Proc. 75-35, 1975-2 C.B. 561. Revenue Procedure 75-35 sets forth the 
information to be included in the ruling request.
    (x) For ruling requests under section 368(a)(1)(E) of the Code, see 
Rev. Proc. 78-33, 1978-2 C.B. 532. Revenue Procedure 78-33 sets forth 
the information to be included in the ruling request.
    (xi) For ruling requests concerning the classification of an 
organization as a limited partnership where a corporation is the sole 
general partner, see Rev. Proc. 72-13, 1972-1 C.B. 735. See also Rev. 
Proc. 74-17, 1974-1 C.B. 438, and Rev. Proc. 75-16, 1975-1 C.B. 676. 
Revenue Procedure 74-17 announces certain operating rules of the Service 
relating to the issuance of advance ruling letters concerning the 
classification of organizations formed as limited partnerships. Revenue 
Procedure 75-16 sets forth a checklist outlining required information 
frequently omitted from requests for rulings relating to classification 
of organizations for Federal tax purposes.
    (xii) For ruling requests concerning the creditability of a foreign 
tax under

[[Page 46]]

section 901 or 903 of the Code, see Rev. Rul. 67-308, 1967-2 C.B. 254, 
which sets forth requirements for establishing that translations of 
foreign law are satisfactory as evidence for purposes of determining the 
creditability of a particular foreign tax.

Original documents should not be submitted because documents and 
exhibits become a part of the Internal Revenue Service file which cannot 
be returned. If the request is with respect to a corporate distribution, 
reorganization, or other similar or related transaction, the corporate 
balance sheet nearest the date of the transaction should be submitted. 
(If the request relates to a prospective transaction, the most recent 
balance sheet should be submitted.) In the case of requests for rulings 
or determination letters, other than those to which section 6104 of the 
Code applies, postmarked or hand delivered to the Internal Revenue 
Service after October 31, 1976, there must accompany such requests a 
statement, described in paragraph (5) of this paragraph, of proposed 
deletions pursuant to section 6110(c) of the Code. Such statement is not 
required if the request is to secure the consent of the Commissioner 
with respect to the adoption of or change in accounting or funding 
periods or methods pursuant to section 412, 442, 446(e), or 706 of the 
Code. If, however, the person seeking the consent of the Commissioner 
receives from the Internal Revenue Service a notice that proposed 
deletions should be submitted because the resulting ruling will be open 
to public inspection under section 6110, the statement of proposed 
deletions must be submitted within 20 days after such notice is mailed.
    (3) As an alternative procedure for the issuance of rulings on 
prospective transactions, the taxpayer may submit a summary statement of 
the facts he considers controlling the issue, in addition to the 
complete statement required for ruling requests by subparagraph (2) of 
this paragraph. Assuming agreement with the taxpayer's summary 
statement, the Service will use it as the basis for the ruling. Any 
taxpayer wishing to adopt this procedure should submit with the request 
for ruling:
    (i) A complete statement of facts relating to the transaction, 
together with related documents, as required by subparagraph (2) of this 
paragraph; and
    (ii) A summary statement of the facts which he believes should be 
controlling in reaching the requested conclusion.

Where the taxpayer's statement of controlling facts is accepted, the 
ruling will be based on those facts and only this statement will 
ordinarily be incorporated in the ruling letter. It is emphasized, 
however, that:
    (a) This procedure for a ``two-part'' ruling request is elective 
with the taxpayer and is not to be considered a required substitute for 
the regular procedure contained in paragraphs (a) through (m) of this 
section;
    (b) Taxpayers' rights and responsibilities are the same under the 
``two-part'' ruling request procedure as those provided in paragraphs 
(a) through (m) of this section;
    (c) The Service reserves the right to rule on the basis of a more 
complete statement of facts it considers controlling and to seek further 
information in developing facts and restating them for ruling purposes; 
and
    (d) The ``two-part'' ruling request procedure will not apply where 
it is inconsistent with other procedures applicable to specific 
situations such as: Requests for permission to change accounting method 
or period; application for recognition of exempt status under section 
501 or 521; or rulings on employment tax status.
    (4) If the taxpayer is contending for a particular determination, he 
must furnish an explanation of the grounds for his contentions, together 
with a statement of relevant authorities in support of his views. Even 
though the taxpayer is urging no particular determination with regard to 
a proposed or prospective transaction, he must state his views as to the 
tax results of the proposed action and furnish a statement of relevant 
authorities to support such views.
    (5) In order to assist the Internal Revenue Service in making the 
deletions, required by section 6110(c) of the Code, from the text of 
rulings and determination letters, which are open to public inspection 
pursuant to section

[[Page 47]]

6110(a) of the Code, there must accompany requests for such rulings or 
determination letters either a statement of the deletions proposed by 
the person requesting the ruling or determination letter and the 
statutory basis for each proposed deletion, or a statement that no 
information other than names, addresses, and taxpayer identifying 
numbers need be deleted. Such statement shall be made in a separate 
document. The statement of proposed deletions shall be accompanied by a 
copy of the request for a ruling or determination letter and supporting 
documents, on which shall be indicated, by the use of brackets, the 
material which the person making such request indicates should be 
deleted pursuant to section 6110(c) of the Code. The statement of 
proposed deletions shall indicate the statutory basis, under section 
6110(c) of the Code, for each proposed deletion. The statement of 
proposed deletions shall not appear or be referred to anywhere in the 
request for a ruling of determination letter. If the person making the 
request decides to request additional deletions pursuant to section 
6110(c) of the Code prior to the time the ruling or determination letter 
is issued, additional statements may be submitted.
    (6) If the request is with respect to the qualification of a plan 
under section 401 or 405(a) of the Code, see paragraphs (o) and (p) of 
this section. If the request is with respect to the qualification of an 
organization for exemption from Federal income tax under section 501 or 
521 of the Code, see paragraph (n) of this section, Revenue Procedure 
72-5, Internal Revenue Bulletin No. 1972-1, 19, and Revenue Procedure 
68-13, C.B. 1968-1, 764.
    (7) A request by or for a taxpayer must be signed by the taxpayer or 
his authorized representative. If the request is signed by a 
representative of the taxpayer, or if the representative is to appear 
before the Internal Revenue Service in connection with the request, he 
must either be:
    (i) An attorney who is a member in good standing of the bar of the 
highest court of any State, possession, territory, Commonwealth, or the 
District of Columbia, and who files with the service a written 
declaration that he is currently qualified as an attorney and he is 
authorized to represent the principal,
    (ii) A certified public accountant who is duly qualified to practice 
in any State, possession, territory, Commonwealth, or the District of 
Columbia, and who files with the Service a written declaration that he 
is currently qualified as a certified public accountant and he is 
authorized to represent the principal, or
    (iii) A person, other than an attorney or certified public 
accountant, enrolled to practice before the Service, and who files with 
the Service a written declaration that he is currently enrolled 
(including in the declaration either his enrollment number or the 
expiration date of his enrollment card) and that he is authorized to 
represent the principal. (See Treasury Department Circular No. 230, as 
amended, C.B. 1966-2, 1171, for the rules on who may practice before the 
Service. See Sec. 601.503(c) for the statement required as evidence of 
recognition as an enrollee.)
    (8) A request for a ruling or an opinion letter by the National 
Office should be addressed to the Commissioner of Internal Revenue, 
Attention: T:FP:T. Washington, DC 20224. A request for a determination 
letter should be addressed to the district director of internal revenue 
whose office has or will have audit jurisdiction of the taxpayer's 
return. See also paragraphs (n) through (q) of this section.
    (9) Any request for a ruling or determination letter that does not 
comply with all the provisions of this paragraph will be acknowledged, 
and the requirements that have not been met will be pointed out. If a 
request for a ruling lacks essential information, the taxpayer or his 
representative will be advised that if the information is not 
forthcoming within 30 days, the request will be closed. 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 of the receipt of 
the essential information. Priority treatment of such request will be 
granted only in rare cases upon the approval of the division director.
    (10) A taxpayer or his representative who desires an oral discussion 
of the

[[Page 48]]

issue or issues involved should indicate such desire in writing when 
filing the request or soon thereafter in order that the conference may 
be arranged at that stage of consideration when it will be most helpful.
    (11) Generally, prior to issuing the ruling or determination letter, 
the National Office or district director shall inform the person 
requesting such ruling or determination letter orally or in writing of 
the material likely to appear in the ruling or determination letter 
which such person proposed be deleted but which the Internal Revenue 
Service determines should not be deleted. If so informed, the person 
requesting the ruling or determination letter may submit within 10 days 
any further information, arguments or other material in support of the 
position that such material be deleted. The Internal Revenue Service 
will attempt, if feasible, to resolve all disagreements with respect to 
proposed deletions prior to the issuance of the ruling or determination 
letter. However, in no event shall the person requesting the ruling or 
determination letter have the right to a conference with respect to 
resolution of any disagreements concerning material to be deleted from 
the text of the ruling or determination letter, but such matters may be 
considered at any conference otherwise scheduled with respect to the 
request.
    (12) It is the practice of the Service to process requests for 
rulings, opinion letters, and determination letters in regular order and 
as expeditiously as possible. Compliance with a request for 
consideration of a particular matter ahead of its regular order, or by a 
specified time, tends to delay the disposition of other matters. 
Requests for processing ahead of the regular order, made in writing in a 
separate letter submitted with the request or subsequent thereto and 
showing clear need for such treatment, will be given consideration as 
the particular circumstances warrant. However, no assurance can be given 
that any letter will be processed by the time requested. For example, 
the scheduling of a closing date for a transaction or a meeting of the 
Board of Directors or shareholders of a corporation without due regard 
to the time it may take to obtain a ruling, opinion letter, or 
determination letter will not be deemed sufficient reason for handling a 
request ahead of its regular order. Neither will the possible effect of 
fluctuation in the market price of stocks on a transaction be deemed 
sufficient reason for handling a request out of order. Requests by 
telegram will be treated in the same manner as requests by letter. 
Rulings, opinion letters, and determination letters ordinarily will not 
be issued by telegram. A taxpayer or his representative desiring to 
obtain information as to the status of his case may do so by contacting 
the appropriate division in the office of the Assistant Commissioner 
(Technical).
    (13) The Director, Corporation Tax Division, has responsibility for 
issuing rulings in areas involving the application of Federal income tax 
to taxpayers; those involving income tax conventions or treaties with 
foreign countries; those involving depreciation, depletion, and 
valuation issues; and those involving the taxable status of exchanges 
and distributions in connection with corporate reorganizations, 
organizations, liquidations, etc.
    (14) The Director, Individual Tax Division, has responsibility for 
issuing rulings with respect to the application of Federal income tax to 
taxpayers (including individuals, partnerships, estates and trusts); 
areas involving the application of Federal estate and gift taxes 
including estate and gift tax conventions or treaties with foreign 
countries; areas involving certain excise taxes; the provisions of the 
Internal Revenue Code dealing with procedure and administration; and 
areas involving employment taxes.
    (15) A taxpayer or the taxpayer's representative desiring to obtain 
information as to the status of the taxpayer's case may do so by 
contacting the following offices with respect to matters in the areas of 
their responsibility:

 
                                              Telephone numbers, (Area
                 Official                             Code 202)
 
Director, Corporation Tax Division          566-4504, 566-4505.
Director, Individual Tax Division           566-3767 or 566-3788.
 

    (16) After receiving the notice pursuant to section 6110(f)(1) of 
the Code of intention to disclose the ruling or determination letter 
(including a copy of

[[Page 49]]

the version proposed to be open to public inspection and notations of 
third-party communications pursuant to section 6110(d) of the Code), if 
the person requesting the ruling or determination letter desires to 
protest the disclosure of certain information in the ruling or 
determination letter, such person must within 20 days after the notice 
is mailed submit a written statement identifying those deletions not 
made by the Internal Revenue Service which such person believes should 
have been made. Such person shall also submit a copy of the version of 
the ruling or determination letter proposed to be open to public 
inspection on which such person indicates, by the use of brackets, the 
deletions proposed by the taxpayer but which have not been made by the 
Internal Revenue Service. Generally, the Internal Revenue Service will 
not consider the deletion under this subparagraph of any material which 
the taxpayer did not, prior to the issuance of the ruling or 
determination letter, propose be deleted. The Internal Revenue Service 
shall, within 20 days after receipt of the response by the person 
requesting the ruling or determination letter to the notice pursuant to 
section 6110(f)(1) of the Code, mail to such person its final 
administrative conclusion with respect to the deletions to be made.
    (17) After receiving the notice pursuant to section 6110(f)(1) of 
the Code of intention to disclose (but no later than 60 days after such 
notice is mailed), the person requesting a ruling or determination 
letter may submit a request for delay of public inspection pursuant to 
either section 6110(g)(3) or section 6110(g) (3) and (4) of the Code. 
The request for delay shall be submitted to the office to which the 
request for a ruling or determination letter was submitted. A request 
for delay shall contain the date on which it is expected that the 
underlying transaction will be completed. The request for delay pursuant 
to section 6110(g)(4) of the Code shall contain a statement from which 
the Commissioner may determine that good cause exists to warrant such 
delay.
    (18) When a taxpayer receives a ruling or determination letter prior 
to the filing of his return with respect to any transaction that has 
been consummated and that is relevant to the return being filed, he 
should attach a copy of the ruling or determination letter to the 
return.
    (19) A taxpayer may protest an adverse ruling letter, or the terms 
and conditions contained in a ruling letter, issued after January 30, 
1977, under section 367(a)(1) of the Code (including a ruling with 
respect to an exchange described in section 367(b) which begins before 
January 1, 1978) or section 1042(e)(2) of the Tax Reform Act of 1976, 
not later than 45 days after the date of the ruling letter. (For rulings 
issued under these sections prior to January 31, 1977, see section 4.01 
of Revenue Procedure 77-5.) The Assistant Commissioner (Technical) will 
establish an ad hoc advisory board to consider each protest, whether or 
not a conference is requested. A protest is considered made on the date 
of the postmark of a letter of protest or the date of the postmark of a 
letter of protest or the date that such letter is hand delivered to any 
Internal Revenue Service office, including the National Office. The 
protest letter must be addressed to the Assistant Commissioner 
(Technical), Attention: T:FP:T. The taxpayer will be granted one 
conference upon request. Whether or not the request is made the board 
may request one or more conferences or written submissions. The taxpayer 
will be notified of the time, date, and place of the conference, and the 
names of the members of the board. The board will consider all materials 
submitted in writing by the taxpayer and oral arguments presented at the 
conference. Any oral arguments made at a conference by the taxpayer, 
which have not previously been submitted to the Service in writing, may 
be submitted to the Service in writing if postmarked not later than 
seven days after the day of the conference.

The Board will make its recommendation to the Assistant Commissioner 
(Technical) and the Assistant Commissioner will make the decision. The 
taxpayer will be informed of the decision of the Assistant Commissioner 
by certified or registered mail. The specific procedures to be used by a 
taxpayer in protesting an adverse ruling letter, or the terms and 
conditions contained in

[[Page 50]]

a ruling letter, under section 367 will be published from time to time 
in the Internal Revenue Bulletin (see, for example, Revenue Procedure 
77-5).
    (f) Conferences in the National Office. (1) If a conference has been 
requested, the taxpayer will be notified of the time and place of the 
conference. A conference is normally scheduled only when the Service 
deems it will be helpful in deciding the case or an adverse decision is 
indicated. If conferences are being arranged with respect to more than 
one request for a ruling involving the same taxpayer, they will be so 
scheduled as to cause the least inconvenience to the taxpayer.
    (2) A taxpayer is entitled, as a matter of right, to only one 
conference in the National Office unless one of the circumstances 
discussed in subparagraph (3) of this paragraph develops. This 
conference will usually be held at the branch level of the appropriate 
division in the office of the Assistant Commissioner (Technical) and 
will usually be attended by a person who has authority to act for the 
branch chief. (See Sec. 601.201(a) (2) for the divisions involved.) If 
more than one subject is to be discussed at the conference, the 
discussion will constitute a conference with respect to each subject. In 
order to promote a free and open discussion of the issues, the 
conference will usually be held after the branch has had an opportunity 
to study the case. However, at the request of the taxpayer or his 
representative, the conference may be held at an earlier stage in the 
consideration of the case than the Service would ordinarily designate. 
No taxpayer has a ``right'' to appeal the action of a branch to a 
division director or to any other official of the Service, nor is a 
taxpayer entitled, as a matter of right, to a separate conference in the 
Chief Counsel's office on a request for a ruling.
    (3) In the process of review in Technical of a holding proposed by a 
branch, it may appear that the final answer will involve a reversal of 
the branch proposal with a result less favorable to the taxpayer. Or it 
may appear that an adverse holding proposed by a branch will be 
approved, but on a new or different issue or on different grounds than 
those on which the branch decided the case. Under either of these 
circumstances, the taxpayer of his representative will be invited to 
another conference. The provisions of this section limiting the number 
of conferences to which a taxpayer is entitled will not foreclose the 
invitation of a taxpayer to attend further conferences when, in the 
opinion of National Office personnel, such need arises. All additional 
conferences of the type discussed in this paragraph are held only at the 
invitation of the Service.
    (4) It is the responsibility of the taxpayer to add to the case file 
a written record of any additional data, lines of reasoning, precedents, 
etc., which are proposed by the taxpayer and discussed at the conference 
but which were not previously or adequately presented in writing.
    (g) Referral of matters to the National Office. (1) Requests for 
determination letters received by the district directors that, in 
accordance with paragraph (c) of this section, may not be acted upon by 
a district office, will be forwarded to the National Office for reply 
and the taxpayer advised accordingly. District directors also refer to 
the National Office any request for a determination letter that in their 
judgement warrants the attention of the National Office. See also the 
provisions of paragraphs (o), (p), and (q) of this section, with respect 
to requests relating to qualification of a plan under sections 401 and 
405(a) of the Code, and paragraph (n) of this section, Revenue Procedure 
72-5, Internal Revenue Bulletin No. 1972-1, 19, and Revenue Procedure 
68-13, C.B. 1968-1, 764, with respect to application for recognition of 
exempt status under sections 501 and 521 of the Code.
    (2) If the request is with regard to an issue or an area with 
respect to which the Service will not issue a ruling or a determination 
letter, such request will not be forwarded to the National Office, but 
the district office will advise the taxpayer that the Service will not 
issue a ruling or a determination letter on the issue. See paragraph (d) 
(2) of this section.
    (h) Referral of matters to district offices. Requests for rulings 
received by the National Office that, in accordance with the provisions 
of paragraph (b) of

[[Page 51]]

this section, may not be acted upon by the National Office will be 
forwarded for appropriate action to the district office that has or will 
have audit jurisdiction of the taxpayer's return and the taxpayer 
advised accordingly. If the request is with respect to an issue or an 
area of the type discussed in paragraph (d)(2) of this section, the 
taxpayer will be so advised and the request may be forwarded to the 
appropriate district office for association with the related return or 
report of the taxpayer.
    (i) Review of determination letters. (1) Determination letters 
issued with respect to the types of inquiries authorized by paragraphs 
(c) (1), (2), and (3) of this section are not generally reviewed by the 
National Office as they merely inform a taxpayer of a position of the 
Service which has been previously established either in the regulations 
or in a ruling, opinion, or court decision published in the Internal 
Revenue Bulletin. If a taxpayer believes that a determination letter of 
this type is in error, he may ask the district director to reconsider 
the matter. He may also ask the district director to request advice from 
the National Office. In such event, the procedures in paragraphs (b) (5) 
of Sec. 601.105 will be followed.
    (2) The procedures for review of determination letters relating to 
the qualification of employers' plans under section 401(a) of the Code 
are provided in paragraph (o) of this section.
    (3) The procedures for review of determination letters relating to 
the exemption from Federal income tax of certain organizations under 
sections 501 and 521 of the Code are provided in paragraph (n) of this 
section.
    (j) Withdrawals of requests. The tax-payer's request for a ruling or 
a determination letter may be withdrawn at any time prior to the signing 
of the letter of reply. However, in such a case, the National Office may 
furnish its views to the district director whose office has or will have 
audit jurisdiction of the taxpayer's return. The information submitted 
will be considered by the district director in a subsequent audit or 
examination of the taxpayer's return. Even though a request is 
withdrawn, all correspondence and exhibits will be retained in the 
Service and may not be returned to the taxpayer.
    (k) Oral advice to taxpayers. (1) The Service does not issue rulings 
or determination letters upon oral requests. Furthermore, National 
Office officials and employees ordinarily will not discuss a substantive 
tax issue with a taxpayer or his representative prior to the receipt of 
a request for a ruling, since oral opinions or advice are not binding on 
the Service. This should not be construed as preventing a taxpayer or 
his representative from inquiring whether the Service will rule on a 
particular question. In such cases, however, the name of the taxpayer 
and his identifying number must be disclosed. The Service will also 
discuss questions relating to procedural matters with regard to 
submitting a request for a ruling, including the application of the 
provisions of paragraph (e) to the particular case.
    (2) A taxpayer may, of course, seek oral technical assistance from a 
district office in the preparation of his return or report, pursuant to 
other established procedures. Such oral advice is advisory only and the 
Service is not bound to recognize it in the examination of the 
taxpayer's return.
    (l) Effect of rulings. (1) A taxpayer may not rely on an advance 
ruling issued to another taxpayer. A ruling, except to the extent 
incorporated in a closing agreement, may be revoked or modified at any 
time in the wise administration of the taxing statutes. See paragraph 
(a)(6) of this section for the effect of a closing agreement. If a 
ruling is revoked or modified, the revocation or modification applies to 
all open years under the statutes, unless the Commissioner or his 
delegate exercises the discretionary authority under section 7805(b) of 
the Code to limit the retroactive effect of the revocation or 
modification. The manner in which the Commissioner or his delegate 
generally will exercise this authority is set forth in this section. 
With reference to rulings relating to the sale or lease of articles 
subject to the manufacturers excise tax and the retailers excise tax, 
see specifically subparagraph (8) of this paragraph.

[[Page 52]]

    (2) As part of the determination of a taxpayer's liability, it is 
the responsibility of the district director to ascertain whether any 
ruling previously issued to the taxpayer has been properly applied. It 
should be determined whether the representations upon which the ruling 
was based reflected an accurate statement of the material facts and 
whether the transaction actually was carried out substantially as 
proposed. If, in the course of the determination of the tax liability, 
it is the view of the district director that a ruling previously issued 
to the taxpayer should be modified or revoked, the findings and 
recommendations of that office will be forwarded to the National Office 
for consideration prior to further action. Such reference to the 
National Office will be treated as a request for technical advice and 
the procedures of paragraph (b)(5) of Sec. 601.105 will be followed. 
Otherwise, the ruling is to be applied by the district office in its 
determination of the taxpayer's liability.
    (3) Appropriate coordination with the National Office will be 
undertaken in the event that any other field official having 
jurisdiction of a return or other matter proposes to reach a conclusion 
contrary to a ruling previously issued to the taxpayer.
    (4) A ruling found to be in error or not in accord with the current 
views of the Service may be modified or revoked. Modification or 
revocation may be effected by a notice to the taxpayer to whom the 
ruling originally was issued, or by a Revenue Ruling or other statement 
published in the Internal Revenue Bulletin.
    (5) Except in rare or unusual circumstances, the revocation or 
modification of a ruling will not be applied retroactively with respect 
to the taxpayer to whom the ruling was originally issued or to a 
taxpayer whose tax liability was directly involved in such ruling if (i) 
there has been no misstatement or omission of material facts, (ii) the 
facts subsequently developed are not materially different from the facts 
on which the ruling was based, (iii) there has been no change in the 
applicable law, (iv) the ruling was originally issued with respect to a 
prospective or proposed transaction, and (v) the taxpayer directly 
involved in the ruling acted in good faith in reliance upon the ruling 
and the retroactive revocation would be to his detriment. To illustrate, 
the tax liability of each employee covered by a ruling relating to a 
pension plan of an employer is directly involved in such ruling. Also, 
the tax liability of each shareholder is directly involved in a ruling 
related to the reorganization of a corporation. However, the tax 
liability of members of an industry is not directly involved in a ruling 
issued to one of the members, and the position taken in a revocation or 
modification of ruling to one member of an industry may be retroactively 
applied to other members of that industry. By the same reasoning, a tax 
practitioner may not obtain the nonretroactive application to one client 
of a modification or revocation of a ruling previously issued to another 
client. Where a ruling to a taxpayer is revoked with retroactive effect, 
the notice to such taxpayer will, except in fraud cases, set forth the 
grounds upon which the revocation is being made and the reasons why the 
revocation is being applied retroactively.
    (6) A ruling issued to a taxpayer with respect to a particular 
transaction represents a holding of the Service on that transaction 
only. However, the application of that ruling to the transaction will 
not be affected by the subsequent issuance of regulations (either 
temporary or final), if the conditions specified in subparagraph (5) of 
this paragraph are met. If the ruling is later found to be in error or 
no longer in accord with the holding of the Service, it will afford the 
taxpayer no protection with respect to a like transaction in the same or 
subsequent year, except to the extent provided in subparagraphs (7) and 
(8) of this paragraph.
    (7) If a ruling is issued covering a continuing action or a series 
of actions and it is determined that the ruling was in error or no 
longer in accord with the position of the Service, the Assistant 
Commissioner (Technical) ordinarily will limit the retroactivity of the 
revocation or modification to a date not earlier than that on which the 
original ruling was modified or revoked. To illustrate, if a taxpayer 
rendered service or provided a facility

[[Page 53]]

which is subject to the excise tax on services or facilities, and in 
reliance on a ruling issued to the same taxpayer did not pass the tax on 
to the user of the service or the facility, the Assistant Commissioner 
(Technical) ordinarily will restrict the retroactive application of the 
revocation or modification of the ruling. Likewise, if an employer 
incurred liability under the Federal Insurance Contributions Act, but in 
reliance on a ruling made to the same employer neither collected the 
employee tax nor paid the employee and employer taxes under the Act, the 
Assistant Commissioner (Technical) ordinarily will restrict the 
retroactive application of the revocation or modification of the ruling 
with respect to both the employer tax and the employee tax. In the 
latter situation, however, the restriction of retroactive application 
ordinarily will be conditioned on the furnishing by the employer of wage 
data, or of such corrections of wage data as may be required by Sec. 
31.6011(a)-1(c) of the Employment Tax Regulations. Consistent with these 
provisions, if a ruling relates to a continuing action or a series of 
actions, the ruling will be applied until the date of issuance of 
applicable regulations or the publication of a Revenue Ruling holding 
otherwise, or until specifically withdrawn. Publication of a notice of 
proposed rulemaking will not affect the application of any ruling issued 
under the procedures set forth herein. (As to the effective date in 
cases involving revocation or modification of rulings or determination 
letters recognizing exemption, see paragraph (n)(1) of this section.)
    (8) A ruling holding that the sale or lease of a particular article 
is subject to the manufacturers excise tax or the retailers excise tax 
may not revoke or modify retroactively a prior ruling holding that the 
sale or lease of such article was not taxable, if the taxpayer to whom 
the ruling was issued, in reliance upon such prior ruling, parted with 
possession or ownership of the article without passing the tax on to his 
customer. Section 1108(b), Revenue Act of 1926.
    (9) In the case of rulings involving completed transactions, other 
than those described in subparagraphs (7) and (8) of this paragraph, 
taxpayers will not be afforded the protection against retroactive 
revocation provided in subparagraph (5) of this paragraph in the case of 
proposed transactions since they will not have entered into the 
transactions in reliance on the rulings.
    (m) Effect of determination letters. A determination letter issued 
by a district director in accordance with this section will be given the 
same effect upon examination of the return of the taxpayer to whom the 
determination letter was issued as is described in paragraph (l) of this 
section, in the case of a ruling issued to a taxpayer, except that 
reference to the National Office is not necessary where, upon 
examination of the return, it is the opinion of the district director 
that a conclusion contrary to that expressed in the determination letter 
is indicated. A district director may not limit the modification or 
revocation of a determination letter but may refer the matter to the 
National Office for exercise by the Commissioner or his delegate of the 
authority to limit the modification or revocation. In this connection 
see also paragraphs (n) and (o) of this section.
    (n) Organization claiming exemption under section 501 or 521 of the 
Code--(1) Filing applications for exemption. (i) An organization seeking 
recognition of exempt status under section 501 or 521 of the Code is 
required to file an application with the key district director for the 
Internal Revenue district in which the principal place of business or 
principal office of the organization is located. Following are the 19 
key district offices that process the applications and the Internal 
Revenue districts covered by each:

                Key district(s) and IRS districts covered

Central Region:
    Cincinnati: Cincinnati, Louisville, Indianapolis.
    Cleveland: Cleveland, Parkersburg.
    Detroit: Detroit.
Mid-Atlantic Region:
    Baltimore: Baltimore (which includes the District of Columbia and 
Office of International Operations), Pittsburgh, Richmond.
    Philadelphia: Philadelphia, Wilmington.
    Newark: Newark.
Midwest Region:

[[Page 54]]

    Chicago: Chicago.
    St. Paul: St. Paul, Fargo, Aberdeen, Milwaukee.
    St. Louis: St Louis, Springfield, Des Moines, Omaha.
North-Atlantic Region:
    Boston: Boston, Augusta, Burlington, Providence, Hartford, 
Portsmouth.
    Manhattan: Manhattan.
    Brooklyn: Brooklyn, Albany, Buffalo.
Southeast Region:
    Atlanta: Atlanta, Greensboro, Columbia, Nashville.
    Jacksonville: Jacksonville, Jackson Birmingham.
Southwest Region:
    Austin: Austin, New Orleans, Albuquerque, Denver, Cheyenne.
    Dallas: Dallas, Oklahoma City, Little Rock, Wichita.
Western Region:
    Los Angeles: Los Angeles, Phoenix, Honolulu.
    San Francisco: San Francisco, Salt Lake City, Reno.
    Seattle: Seattle, Portland, Anchorage, Boise, Helena.

    (ii) A ruling or determination letter will be issued to an 
organization provided its application and supporting documents establish 
that it meets the particular requirements of the section under which 
exemption is claimed. Exempt status will be recognized in advance of 
operations if proposed operations can be described in sufficient detail 
to permit a conclusion that the organization will meet the particular 
requirements of the section under which exemption is claimed. A mere 
restatement of purposes or a statement that proposed activities will be 
in furtherance of such purposes will not satisfy these requirements. The 
organization must fully describe 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 to receipts; and the nature of contemplated expenditures. Where 
the Service considers it warranted, a record of actual operations may be 
required before a ruling or determination letter will be issued.
    (iii) Where an application for recognition of exemption does not 
contain the required information, the application may be returned to the 
applicant without being considered on its merits with an appropriate 
letter of explanation. In the case of an application under section 501 
(c) (3) of the Code, the applicant will also be informed of the time 
within which the completed application must be resubmitted in order for 
the application to be considered as timely notice within the meaning of 
section 508(a) of the Code.
    (iv) A ruling or determination letter recognizing exemption will not 
ordinarily be issued if an issue involving the organization's exempt 
status under section 501 or 521 of the Code is pending in litigation or 
on appeal within the Service.
    (2) Processing applications and requests for determination of 
foundation status. (i) Under the general procedures outlined in 
paragraphs (a) through (m) of this section, key district directors are 
authorized to issue determination letters involving applications for 
exemption under sections 501 and 521 of the Code, and requests for 
foundation status under sections 509 and 4942 (j)(3).
    (ii) A key district director will refer to the National Office those 
applications that present questions the answers to which are not 
specifically covered by statute, Treasury decision or regulation, or by 
a ruling, opinion, or court decision published in the Internal Revenue 
Bulletin. The National Office will consider each such application, issue 
a ruling directly to the organization, and send a copy of the ruling to 
the key district director. Where the issue of exemption under section 
501(c)(3) of the Code is referred to the National Office for decision 
under this subparagraph, the foundation status issue will also be the 
subject of a National Office ruling. In the event of a conclusion 
unfavorable to the applicant, it will be informed of the basis for the 
conclusion and of its rights to file a protest and to a conference in 
the National Office. If a conference is requested, the conference 
procedures set forth in subparagraph (9)(v) of this paragraph will be 
followed. After reconsideration of the application in the light of the 
protest and any information developed in conference, the National Office 
will affirm, modify, or reverse the original conclusion, issue a ruling 
to the organization, and send a copy of the ruling to the key district 
director.

[[Page 55]]

    (iii) Key district directors will issue determination letters on 
foundation status. All adverse determinations issued by key district 
directors (including adverse determinations on the foundation status 
under section 509(a) of the Code of nonexempt charitable trusts 
described in section 4947(a)(1)) are subject to the protest and 
conference procedures outlined in subparagraph (5) of this paragraph. 
Key district directors will issue such determinations in response to 
applications for recognition of exempt status under section 501(c)(3). 
They will also issue such determinations in response to requests for 
determination of foundation status by organizations presumed to be 
private foundations under section 508(b), requests for new 
determinations of foundation status by organizations previously 
classified as other than private foundations, and, subject to the 
conditions set forth in subdivision (vi) of subparagraph (6) of this 
paragraph, requests to reconsider status. The requests described in the 
preceding sentence must be made in writing. For information relating to 
the circumstances under which an organization presumed to be a private 
foundation under section 508(b) may request a determination of its 
status as other than a private foundation, see Revenue Ruling 73-504, 
1973-2 C.B. 190. All requests for determinations referred to in this 
paragraph should be made to the key district director for the district 
in which the principal place of business or principal office of the 
organization is located.
    (iv) If the exemption application or request for foundation status 
involves an issue which is not covered by published precedent or on 
which there may be nonuniformity between districts, or if the National 
Office had issued a previous contrary ruling or technical advice on the 
issue, the key district director must request technical advice from the 
National Office. If, during the consideration of its application or 
request by a key district director, the organization believes that the 
case involves an issue with respect to which referral for technical 
advice is appropriate, the organization may ask the district director to 
request technical advice from the National Office. The district director 
shall advise the organization of its right to request referral of the 
issue to the National Office for technical advice. The technical advice 
provisions applicable to these cases are set forth in subparagraph (9) 
of this paragraph. The effect on an organization's appeal rights of 
technical advice or a National Office ruling issued under this 
subparagraph are set forth in Sec. 601.106(a)(1)(iv)(a) and in 
subparagraph (5)(i) of this paragraph.
    (3) Effect of exemption rulings or determination letters. (i) A 
ruling or determination letter recognizing exemption is usually 
effective as of the date of formation of an organization, if its 
purposes and activities during the period prior to the date of the 
ruling or determination letter were consistent with the requirements for 
exemption. However, with respect to organizations formed after October 
9, 1969, applying for recognition of exemption under section 501(c)(3) 
of the Code, the provisions of section 508(a) apply. If the organization 
is required to alter its activities or make substantive amendments to 
its enabling instrument, the ruling or determination letter recognizing 
its exemption will be effective as of the date specified therein.
    (ii) A ruling or determination letter recognizing exemption may not 
be relied upon if there is a material change inconsistent with exemption 
in the character, the purpose, or the method of operation of the 
organization.
    (iii) (a) When an organization that has been listed in IRS 
Publication No. 78, ``Cumulative List of Organizations described in 
section 170 (c) of the Internal Revenue Code of 1954,'' as an 
organization contributions to which are deductible under section 170 of 
the Code subsequently ceases to qualify as such, and the ruling or 
determination letter issued to it is revoked, contributions made to the 
organization by persons unaware of the change in the status of the 
organization generally will be considered allowable until (1) the date 
of publication of an announcement in the Internal Revenue Bulletin that 
contributions are no longer deductible, or (2) a date specified in such 
an announcement where deductibility is terminated as of a different 
date.

[[Page 56]]

    (b) In appropriate cases, however, this advance assurance of 
deductibility of contributions made to such an organization may be 
suspended pending verification of continuing qualification under section 
170 of the Code. Notice of such suspension will be made in a public 
announcement by the Service. In such cases allowance of deductions for 
contributions made after the date of the announcement will depend upon 
statutory qualification of the organization under section 170.
    (c) If an organization, whose status under section 170 (c)(2) of the 
Code is revoked, initiates within the statutory time limit a proceeding 
for declaratory judgment under section 7428, special reliance provisions 
apply. If the decision of the court is adverse to the organization, it 
shall nevertheless be treated as having been described in section 170 
(c) (2) for purpose of deductibility of contributions from other 
organizations described in section 170 (c) (2) and individuals (up to a 
maximum of $1,000), for the period beginning on the date that notice of 
revocation was published and ending on the date the court first 
determines that the organization is not described in section 170 (c)(2).
    (d) In any event, the Service is not precluded from disallowing any 
contributions made after an organization ceases to qualify under section 
170 of the Code where the contributor (1) had knowledge of the 
revocation of the ruling or determination letter, (2) was aware that 
such revocation was imminent, or (3) was in part responsible for, or was 
aware of, the activities or deficiencies on the part of the organization 
which gave rise to the loss of qualification.
    (4) National Office review of determination letters. The National 
Office will review determination letters on exemption issues under 
sections 501 and 521 of the Code and foundation status under sections 
509(a) and 4942(j)(3) to assure uniformity in the application of the 
established principles and precedents of the Service. Where the National 
Office takes exception to a determination letter the key district 
director will be advised. If the organization protests the exception 
taken, the file and protests will be returned to the National Office. 
The referral will be treated as a request for technical advice and the 
procedures of subparagraph (a) of this paragraph will be followed.
    (5) Protest of adverse determination letters. (i) Upon the issuance 
of an adverse determination letter, the key district director will 
advise the organization of its right to protest the determination by 
requesting Appeals office consideration. However, if the determination 
was made on the basis of National Office technical advise the 
organization may not appeal the determination to the Appeals office. See 
Sec. 601.106(a)(1)(iv)(a). To request Appeals consideration, the 
organization shall submit to the key district director, within 30 days 
from the date of the letter, a statement of the facts, law, and 
arguments in support of its position. The organization must also state 
whether it wishes an Appeals office conference. Upon receipt of an 
organization's request for Appeals consideration, the key district 
director will, if it maintains its position, forward the request and the 
case file to the Appeals office.
    (ii) Except as provided in subdivisions (iii) and (iv) of this 
subparagraph, the Appeals office, after considering the organization's 
protest and any additional information developed, will advise the 
organization of its decision and issue an appropriate determination 
letter. Organizations should make full presentation of the facts, 
circumstances, and arguments at the initial level of consideration, 
since submission of additional facts, circumstances, and arguments at 
the Appeals office may result in suspension of Appeals procedures and 
referral of the case back to the key district for additional 
consideration.
    (iii) If the proposed disposition by the Appeals office is contrary 
to a National Office technical advice or ruling concerning tax 
exemption, issued prior to the case, the proposed disposition will be 
submitted, through the Office of the Regional Director of Appeals, to 
the Assistant Commissioner (Employee Plans and exempt Organizations) or, 
in a section 521 case, to the Assistant Commissioner (Technical). The 
decision of the Assistant Commissioner will be followed by the Appeals 
office. See Sec. 601.106(a)(1)(iv)(b).

[[Page 57]]

    (iv) If the case involves an issue that is not covered by published 
precedent or on which there may be nonuniformity between regions, and on 
which the National Office has not previously rules, the Appeals office 
must request technical advice from the National Office. If, during the 
Consideration of its case by Appeals the Organization believes that the 
case involves an issue with respect to which referal for technical 
advice is appropriate, the organization may ask the Appeals office to 
request technical advice from the National Office. The Appeals office 
shall advise the organization of its right to request referral of the 
issue to the National Office for technical advice. If the Appeals office 
requests technical advice, the decision of the Assistant Commissioner 
(Employee Plans and Exempt Organizations) or, in a section 521 case, the 
decision of the Assistant Commissioner (Technical), in a technical 
advice memorandum is final and the Appeals office must dispose of the 
case in accordance with that decision. See subparagraph (9)(viii)(a) of 
this paragraph.
    (6) Revocation of modification of rulings or determination letters 
on exemption and foundation status. (i) An exemption ruling or 
determination letter may be revoked or modified by a ruling or 
determination letter addressed to the organization, or by a revenue 
ruling or other statement published in the Internal Revenue Bulletin. 
The revocation or modification may be retroactive if the organization 
omitted or misstated a material fact, operated in a manner materially 
different from that originally represented, or engaged in a prohibited 
transaction of the type described in subdivision (vii) of this 
subparagraph. In any event, revocation or modification will ordinarily 
take effect no later than the time at which the organization received 
written notice that its exemption ruling of determination letter might 
be revoked or modified.
    (ii)(a) If a key district director concludes as a result of 
examining an information return, or considering information from any 
other source, that an exemption ruling or determination letter should be 
revoked or modified, the organization will be advised in writing of the 
proposed action and the reasons therefor. If the case involves an issue 
not covered by published precedent or on which there may be 
nonuniformity between districts, or if the National Office has issued a 
previous contrary ruling or technical advice on the issue, the district 
director must seek technical advice from the National Office. If the 
organization believes that the case involves an issue with respect to 
which referral for technical advice is appropriate, the organization may 
ask the district director to request technical advice from the National 
Office. The district director shall advise the organization of its right 
to request referral of the issue to the National Office for technical 
advice.
    (b) The key district director will advise the organization of its 
right to protest the proposed revocation or modification by requesting 
Appeals office consideration. However, if National Office technical 
advice was furnished concerning revocation or modification under (a) of 
this subdivision, the decision of the Assistant Commissioner in the 
technical advice memorandum is final and the organization has no right 
of appeal to the Appeals office. See Sec. 601.106(a)(1)(iv)(a) to 
request Appeals consideration, the organization must submit to the key 
district director, within 30 days from the date of the letter, a 
statment of the facts, law, and arguments in support of its continued 
exemption. The organization must also state whether it wishes an Appeals 
office conference. Upon receipt of an organization's request for Appeals 
consideration, the key district office, will, if it maintains its 
position, forward the request and the case file to the Appeals office.
    (c) Except as provided in (d) and (e) of this subdivision, the 
Appeals office, after considering the organization's protest and any 
additional information developed, will advise the organization of its 
decision and issue an appropriate determination letter. Organizations 
should make full presentation of the facts, circumstances, and arguments 
at the initial level of consideration, since submission of additional 
facts, circumstances, and arguments at the Appeals office may result in 
suspension of Appeals procedures and referral of the

[[Page 58]]

case back to the key district for additional consideration.
    (d) If the proposed disposition by the Appeals office is contrary to 
a National Office technical advice or ruling concerning tax exemption, 
issued prior to the case, the proposed disposition will be submitted, 
through the Office of the Regional Director of Appeals, to the Assistant 
Commissioner (Employee Plans and Exempt Organizations) or, in a section 
521 case, to the Assisant Commissioner (Technical). The decision of the 
Assistant Commissioner will be followed by the Appeals office. See Sec. 
601.106(a)(1)(iv)(b).
    (e) If the case involves an issue that is not covered by published 
precedent or on which there may be nonuniformity between regions, and on 
which the National Office has not previously rules, the Appeals office 
must request technicla advice from the National Office. If the 
organization believes that the case involves an issue with respect to 
which referral for technical advice is appropriate, the organization may 
ask the Appeals office to request technical advice from the National 
Office. The Appeals office shall advice the organization of tis right to 
request referral of the issue to the National Office for technical 
advice.
    (iii) A ruling or determination letter respecting private 
foundations or operating foundation status may be revoked or modified by 
a ruling or determination letter addressed to the organization, or by a 
revenue ruling or other statement published in the Internal Revenue 
Bulletin. If a key district director concludes, as a result of examining 
an information return or considering information from any other source, 
that a ruling or determination letter concerning private foundation 
status (including foundation status under section 509(a)(3) of the Code 
of a nonexempt charitable trust described in section 4947(a)(1)) or 
operating foundation status should be modified or revoked, the 
procedures in subdivision (iv) or (v) of this subparagraph should be 
followed depending on whether the revocation or modification is adverse 
or non-adverse to the affected organization. Where there is a proposal 
by the Service to change foundation status classification from one 
particular paragraph of section 509(a) to another paragraph of that 
section, the procedures described in subdivision (iv) of this paragraph 
will be followed to modify the ruling or determination letter.
    (iv) If a key district director concludes that a ruling or 
determination letter concerning private foundation or operating 
foundation status should be revoked or modified. The organization will 
be advised in writing of the proposed adverse action, the reasons 
therefor, and the proposed new determination of foundation status. The 
procedures set forth in subdivision (ii) of this subparagraph apply to a 
proposed revocation or modification under this subdivision. Unless the 
effective date or revocation or modification of a ruling or 
determination letter concerning private foundation or operating 
foundation status is expressly covered by statute or regulations, the 
effective date generally is the same as the effective date of revocation 
or modification of exemption rulings or determination letters as 
provided in subdivision (i) of this subparagraph.
    (v) If the key district director concludes that a ruling or 
determination letter concerning private foundation or operating 
foundation status should be revoked or modified and that such revocation 
of modification will not be adverse to the organization, the key 
district director will issue a determination letter revoking or 
modifying foundation status. The determination letter will also serve to 
notify the organization of its foundation status as redetermined. A 
nonadverse revocation or modification as to private foundation or 
operating foundation status will ordinarily be retroactive if the 
initial ruling or determination letter was incorrect.
    (vi) In cases where an organization believes that it received an 
incorrect ruling or determination letter as to its private foundation or 
operating foundation status, the organization may request a key district 
director to reconsider such ruling or determination letter. Except in 
are circumstances, the key district director will only consider such 
requests where the organization had not exercised any protest or 
conference rights with respect to the

[[Page 59]]

issuance of such ruling or determination letter. If a key district 
director decides that reconsideration is warranted, the request will be 
treated as an initial request for a determination of foundation status, 
and the key district director will issue a determination on foundation 
status or operating foundation status under the procedures of 
subparagrph (2) of this paragraph. If a nonadverse determination is 
issued, it will also inform the organization that the prior ruling or 
determination letter is revoked or modified. Adverse determinations are 
subject to the procedures set out in subparagraph (5) of this paragraph. 
If the key district director decides that reconsideration is not 
warranted, the organization will be notified accordingly. The 
organization does not have a right to protest the key district 
director's decision not to reconsider.
    (vii) If it is concluded that an organization that is subject to the 
provisions of section 503 of the Code entered into a prohibited 
transaction for the purpose of diverting corpus or income from its 
exempt purpose, and if the transaction involved a substantial part of 
the corpus or income of the organization, its exemption is revoked 
effective as of the beginning of the taxable year during which the 
prohibited transaction was commenced.
    (viii) The provisions of this subparagraph relating to protests, 
conferences, and the rights of organizations to ask the technical advice 
be requested before a revocation (or modification) notice is issued are 
not applicable to matters where delay would be prejudicial to the 
interests of the Internal Revenue Service (such as in cases involving 
fraud, jeopardy, the imminence of the expiration of the period of 
limitations, or where immediate action is necessary to protect the 
interests of the Government).
    (7) Declaratory judgments relating to status and classification of 
organizations under section 501(c)(3) of the Code. (i) An organization 
seeking recognition of exempt status under section 501(c)(3) of the Code 
must follow the procedures of subparagraph (1) of this paragraph 
regarding the filing of Form 1023, Application of Recognition of 
Exemption. The 270-day period referred to in section 7428(b)(2) will be 
considered by the Service to begin on the date a substantially completed 
Form 1023 is sent to the appropriate key district director. A 
substantially completed Form 1023 is one that:
    (a) Is signed by an authorized individual;
    (b) Includes an Employer Identification Number (EIN) or a completed 
Form SS-4, Application of Employer Identification Number;
    (c) 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 then four years (if the 
organization has not yet commenced operations, a proposed budget for two 
full accounting periods and a current statement of assets and 
liabilities will be acceptable);
    (d) Includes a statement of proposed activities and a description of 
anticipated receipts and contemplated expenditures;
    (e) Includes a copy of the organizing or enabling document that the 
organizing or enabling document that is signed by a principal officer or 
is accompanied by written declaration signed by an officer authorized to 
sign for the organization certifying that the document is a complete and 
accurate copy of the original; and
    (f) If the organization is a corporation or unincorporated 
association and it has adopted bylaws, includes a copy that is signed or 
otherwise verified as current by an authorized officer.
    If an application does not contain all of the above items, it will 
not be further processed and may be returned to the applicant for 
completion. The 270-day period will not be considered as starting until 
the date the application is remailed to the Service with the requested 
information, or, if a postmark is not evident, on the date the Service 
receives a substantially completed application.
    (ii) Generally, rulings and determi nation letters in cases subject 
to declaratory judgment are issued under the procedures outlined in the 
paragraph. In National Office exemption application cases, proposed 
adverse rulings will be issued by the rulings sections in the Exempt 
organizations

[[Page 60]]

Technical Branch. Applicants shall appeal these proposed adverse rulings 
to the Conference and Review Staff of the Exempt organizations Technical 
Branch. In those cases where an organization is unable to describe fully 
its purposes and activities (see subparagraph (1)(ii) of this 
paragraph), a refusal to rule will be considered an adverse 
determination ofr which administrative appeal rights will be afforded. 
Any oral representation of additional facts or modification of the facts 
as represented or alleged in the aplication for a ruling or 
determination letter must be reduced to writing.
    (iii) If an organization withdraws in writing its request for a 
ruling or determination letter, the withdrawal will not be considered by 
the Service as either a failure to make a determination within the 
meaning of section 7428(a)(2) of the Code or as an exhaustion of 
administrative remedies within the meaning of section 7428(b)(2).
    (iv) Section 7428(b)(2) of the Code requires that an organization 
must exhaust its administrative remedies by taking timely, reasonable 
steps to secure a determination. Those steps and administrative remedies 
that must be exhausted within the Intereal Revenue Service are:
    (a) The filing of a substantially completed application form 1023 
pursuant to subdivision (i) of this subparagraph, or the filing of a 
request for a determination of foundation status pursuant to 
subparagrpah (2) of this paragraph;
    (b) The timely submission of all additional information requested to 
perfect an exemption application or request for determination of private 
foundation status; and
    (c) Exhaustion of all administrative appeals available within the 
Service pursuant to subparagraphs (5) and (6) of this paragraph, as well 
as appeal of a proposed adverse ruling to the Conference and Review 
Staff of the Exempt Organizations Technical Branch in National Office 
original jurisdiction exemption application cases.
    (v) An organization will in no event be deemed to have exhausted its 
administrative remedies prior to the completion of the steps described 
in subdivision (iv) of this subparagraph and the earlier of:
    (a) The sending by certified or registered mail of a notice of final 
determination; or
    (b) The expiration of the 270-day period described in section 
7428(b)(2) of the Code, in a case in which the Service has not issued a 
notice of final determination and the organization has taken, in a 
timely manner, all reasonable steps to secure a ruling or determination.
    (vi) The steps described in subdivision (iv) of this subparagraph 
will not be considered completed until the Internal Revenue Service has 
had a reasonable time to act upon the appeal or request for 
consideration, as the case may be.
    (vii) A notice of final determination to which section 7428 of the 
Code applies is a ruling or determination letter, sent by certified or 
registered mail, which holds that the organization is not described in 
section 501(c)(3) or section 170(c)(2), is a private foundation as 
defined in section 509(a), or is not a private operating foundation as 
defined in section 4942(j)(3).
    (8) Group exemption letters--(i) General. (a) A group exemption 
letter is a ruling issued to a central organization recognizing on a 
group basis the exemption under section 501(c) of the Code of 
subordinate organizations on whose behalf the central organization has 
applied for exemption in accordance with this subparagraph.
    (b) A central organization is an organization which has one or more 
subordinates under its general supervision or control.
    (c) A subordinate is a chapter, local, post, or unit of a central 
organization. It may or may not be incorporated. A central organization 
may be a subordinate itself, such as a state organization which has 
subordinate units and is itself affiliated with a national organization.
    (d) A subordinate included in a group exemption letter should not 
apply separately for an exemption letter, unless it no longer wants to 
be included in the group exemption letter.
    (e) A subordinate described in section 501(c)(3) of the Code may not 
be included in a group exemption letter if it is a private foundation as 
defined in

[[Page 61]]

section 509(a) of the Code. Such an organization should apply separately 
for exempt status under the procedures outlined in subparagraph (1) of 
this paragraph.
    (ii) Requirements for inclusion in a group exemption letter. (a) A 
central organization applying for a group exemption letter must 
establish its own exempt status.
    (b) It must also establish that the subordinates to be included in 
the group exemption letter are:
    (1) Affiliated with it;
    (2) Subject to its general supervision or control;
    (3) Exempt under the same paragraph of section 501(c) of the Code, 
though not necessarily the paragraph under which the central 
organization is exempt; and
    (4) Not private foundations if application for a group exemption 
letter involves section 501(c)(3) of the Code.
    (c) Each subordinate must authorize the central organization to 
include it in the application for the group exemption letter. The 
authorization must be signed by a duly authorized officer of the 
subordinate and retained by the central organization while the group 
exemption letter is in effect.
    (iii) Filing application for a group exemption letter. (a) A central 
organization seeking a group exemption letter for its subordinates must 
obtain recognition of its own exemption by filing an application with 
the District Director of Internal Revenue for the district in which is 
located the principal place of business or the principal office of the 
organization. For the form of organization see Sec. 1.501(a)-1 of the 
Income Tax Regulations. Any application received by the National Office 
or by a district director other than as provided above will be 
forwarded, without any action thereon, to the appropriate district 
director.
    (b) If the central organization has previously established its own 
exemption, it must indicate its employer identification number, the date 
of the exemption letter, and the Internal Revenue Office that issued it. 
It need not resubmit documents already submitted. However, if it has not 
already done so, it must submit a copy of any amendments to its 
governing instruments or internal regulations as well as any information 
regarding any change in its character, purposes, or method of operation.
    (c) In addition to the information required to establish its own 
exemption, the central organization must submit to the district director 
the following information, in duplicate, on behalf of those subordinates 
to be included in the group exemption letter:
    (1) A letter signed by a principal officer of the central 
organization setting forth or including as attachments:
    (i) Information verifying the existence of the relationships 
required by subdivision (ii)(b) of this subparagraph;
    (ii) A description of the principal purposes and activities of the 
subordinates;
    (iii) A sample copy of a uniform governing instrument (charter, 
trust indenture, articles of association, etc.), if such an instrument 
has been adopted by the subordinates; or, in the absence of a uniform 
governing instrument, copies of representative instruments;
    (iv) An affirmation to the effect that, to the best of his 
knowledge, the subordinates are operating in accordance with the stated 
purposes;
    (v) A statement that each subordinate to be included in the group 
exemption letter has furnished written authorization to the central 
organization as described in subdivision (ii)(c) of this subparagraph; 
and
    (vi) A list of subordinates to be included in the group exemption 
letter to which the Service has issued an outstanding ruling or 
determination letter relating to exemption.
    (vii) If the application for a group exemption letter involves 
section 501(c)(3) of the Code, an affirmation to the effect that, to the 
best of his knowledge and belief, no subordinate to be included in the 
group exemption letter is a private foundation as defined in section 
509(a) of the Code.
    (2) A list of the names, mailing addresses (including Postal ZIP 
Codes), and employer identification numbers (if required for group 
exemption letter purposes by paragraph (e) of this subdivision) of 
subordinates to be included in the group exemption letter. A current 
directory of subordinates may be

[[Page 62]]

furnished in lieu of the list if it includes the required information 
and if the subordinates not to be included in the group exemption letter 
are identified.
    (d) If the central organization does not have an employer 
identification number, it must submit a completed Form SS-4, Application 
for Employer Identification Number, with its exemption application. See 
Rev. Rul. 63-247, C.B. 1963-2, 612.
    (e) Each subordinate required to file an annual information return, 
Form 990 or 990-A, must have its own employer identification number, 
even if it has no employees. The central organization must submit with 
the exemption application a completed Form SS-4 on behalf of each 
subordinate not having a number. Although subordinates not required to 
file annual information returns, Form 990 or 990-A, need not have 
employer identification numbers for group exemption letter purposes, 
they may need such numbers for other purposes.
    (iv) Information required annually to maintain a group exemption 
letter. (a) The central organization must submit annually within 45 days 
after the close of its annual accounting period the information set out 
below to the Philadelphia Service Center, 11601 Roosevelt Boulevard, 
Philadelphia, PA 19155, Attention: EO: R Branch:
    (1) Information regarding all changes in the purposes, character, or 
method of operation of subordinates included in the group exemption 
letter.
    (2) Lists of--
    (i) Subordinates which have changed their names or addresses during 
the year,
    (ii) Subordinates no longer to be included in the group exemption 
letter because they have ceased to exist, disaffiliated, or withdrawn 
the authorization to the central organization, and
    (iii) Subordinates to be added to the group exemption letter because 
they are newly organized or affiliated or they have newly authorized the 
central organization to include them. A separate list must be submitted 
for each of the three categories set out above. Each list must show the 
names, mailing addresses (including Postal ZIP Codes), and employer 
identification numbers of the affected subordinates. An annotated 
directory of subordinates will not be acceptable for this purpose. If 
there were none of the above changes, the central organization must 
submit a statement to that effect.
    (3) The information required by subdivision (iii)(c)(l) of this 
subparagraph, with respect to subordinates to be added to the group 
exemption letter. However, if the information upon which the group 
exemption letter was based is applicable in all material respects to 
such subordinates, a statement to this effect may be submitted in lieu 
of the information required by subdivision (iii)(c)(l)(i) through (v) of 
this subparagraph.
    (b) Submission of the information required by this subdivision does 
not relieve the central organization or any of its subordinates of the 
duty to submit such additional information as a key district director 
may require to enable him to determine whether the conditions for 
continued exemption are being met. See sections 6001 and 6033 of the 
Code and the regulations thereunder.
    (v) Termination of a group exemption letter. (a) Termination of a 
group exemption letter will result in nonrecognition of the exempt 
status of all included subordinates. To establish an exempt status in 
such cases, each subordinate must file an exemption application under 
the procedures outlined in subparagraph (1) of this paragraph, or a new 
group exemption letter must be applied for under this subparagraph.
    (b) If a central organization dissolves or ceases to exist, the 
group exemption letter will be terminated, notwithstanding that the 
subordinates continue to exist and operate independently.
    (c) Failure of the central organization to submit the information 
required by subdivision (iv) of this subparagraph, or to file a required 
information return. Form 990 or 990-A, or to otherwise comply with 
section 6001 or 6033 of the Code and the regulations thereunder, may 
result in termination of the group exemption letter on the grounds that 
the conditions required for the continuance of the group exemption 
letter have not been met. See Rev. Rul. 59-95, C.B. 1959-1, 627.

[[Page 63]]

    (d) The dissolution of a subordinate included in a group exemption 
letter will not affect the exempt status of the other included 
subordinates.
    (e) If a subordinate covered by a group exemption letter fails to 
comply with section 6001 or 6033 of the Code and the regulations 
thereunder (for example, by failing to file a required information 
return) and the Service terminates its recognition of the subordinate's 
status, a copy of the termination letter to the subordinate will be 
furnished to the central organization. The group exemption letter will 
no longer be applicable to such subordinate, but will otherwise remain 
in effect. (It should be noted that if Form 990 is required to be filed, 
failure to file such return on time may also result in the imposition of 
a penalty of $10 for each day the return is late, up to a maximum of 
$5,000. See section 6652 of the Code and the regulations thereunder.)
    (vi) Revocation of a group exemption letter. (a) If the Service 
determines, under the procedures described in subparagraph (6) of this 
paragraph, that a central organization no longer qualifies for exemption 
under section 501(c) of the Code, the group exemption letter will be 
revoked. The revocation will result in nonrecognition of the exempt 
status of all included subordinates. To reestablish an exempt status in 
such cases, each subordinate must file an exemption application under 
the procedures outlined in subparagraph (1) of this paragraph or a new 
group exemption letter must be applied for under this subparagraph.
    (b) If the Service determines, under the procedures described in 
subparagraph (6) of this paragraph, that a subordinate included in a 
group exemption letter no longer qualifies for exemption under section 
501(c) of the Code, the central organization and the subordinate will be 
notified accordingly, and the group exemption letter will no longer 
apply to such subordinate, but will otherwise remain in effect.
    (c) Where a subordinate organization has been disqualified for 
inclusion in a group exemption letter as described in (b) of this 
subdivision, and thereafter wishes to reestablish its exempt status, the 
central organization should, at the time it submits the information 
required by subdivision (iv) of this subparagraph, submit detailed 
information relating to the subordinate's qualification for reinclusion 
in the group exemption letter.
    (vii) Instrumentalities or agencies of political subdivisions. An 
instrumentality or agency of a political subdivision that exercises 
control or supervision over a number of organizations similar in 
purposes and operations, each of which may qualify for exemption under 
the same paragraph of section 501(c) of the Code, may obtain a group 
exemption letter covering those organizations in the same manner as a 
central organization. However, the instrumentality or agency must 
furnish evidence that it is a qualified governmental agency. Examples of 
organizations over which governmental agencies exercise control or 
supervision are Federal credit unions, State chartered credit unions, 
and Federal land bank associations.
    (viii) Listing in cumulative list of organizations to which 
charitable contributions are deductible. If a central organization to 
which a group exemption letter has been issued is eligible to receive 
deductible charitable contributions as provided in section 107 of the 
Code, it will be listed in Publication No. 78, Cumulative List--
organizations Described in section 170(c) of the Internal Revenue Code 
of 1954. The names of the subordinates covered by the group exemption 
letter will not be listed individually. However, the identification of 
the central organization will indicate whether contributions to its 
subordinates are also deductible.
    (9) Technical advice from the National Office--(i) Definition and 
nature of technical advice. (a) As used in this subparagraph, technical 
advice means advice or guidance as to the interpretation and proper 
application of internal revenue laws, related statutes, and regulations, 
to a specific set of facts, in Employee Plans and Exempt Organization 
matters, furnished by the National Office upon request of a key district 
office or Appeals office in connection with the processing and 
consideration of a nondocketed case. It is furnished as a means of 
assisting Service personnel in closing cases and establishing and

[[Page 64]]

maintaining consistent holdings. It does not include memorandums on 
matters of general technical application furnished to key district 
offices or to Appeals offices where the issues are not raised in 
connection with the consideration and handling of a specific case.
    (b) The provisions of this subparagraph only apply to Employee Plans 
and Exempt Organization cases being considered by a key district 
director or Appeals office. They do not apply to any other case under 
the jurisdiction of a district director or Appeals office or to a case 
under the jurisdiction of the Bureau of Alcohol, Tobacco, and Firearms. 
The technical advice provisions applicable to cases under the 
jurisdiction of a district director, other than Employee Plans and 
Exempt Organization cases, are set forth in Sec. 601.105(b)(5). The 
technical advice provisions applicable to cases under the jurisdiction 
of an Appeals office, other than Employee Plans and Exempt Organization 
cases are set forth in Sec. 601.106(f)(10).
    (c) A key district director or an Appeals office may, under this 
subparagraph, request technical advice with respect to the consideration 
of a request for a determination letter. If the case involves certain 
Exempt Organization issues that are not covered by published precedent 
or on which there may be nonuniformity, requesting technical advice is 
mandatory rather than discretionary. See subparagraphs (2)(iv) and 
(5)(iii) of this paragraph.
    (d) If a key district director is of the opinion that a National 
Office ruling letter or technical advice previously issued should be 
modified or revoked and it requests the National Office to reconsider 
the ruling or technical advice, the reference of the matter to the 
National Office is treated as a request for technical advice. The 
procedures specified in subdivision (iii) of this subparagraph should be 
followed in order that the National Office may consider the 
recommendation. Only the National Office can revoke a National Office 
ruling letter or technical advice. Before referral to the National 
Office, the key district director should inform the plan/organization of 
its opinion that the ruling letter or technical advice should be 
revoked. The key district director, after development of the facts and 
consideration of the arguments, will decide whether to recommend 
revocation of the ruling or technical advice to the National Office.
    (e) The Assistant Commissioner (Employee Plans and Exempt 
Organizations) and, in section 521 cases, the Assistant Commissioner 
(Technical), acting under a delegation of authority from the 
Commissioner of Internal Revenue, are exclusively responsible for 
providing technical advice in any issue involving the establishment of 
basic principles and rules for the uniform interpretation and 
application of tax laws in cases under this subparagraph. This authority 
has been largely redelegated to subordinate officials.
    (ii) Areas in which technical advice may be requested. (a) Key 
district directors and Appeals offices may request technical advice on 
any technical or procedural question that develops during the processing 
and consideration of a case. These procedures are applicable as provided 
in subdivision (i) of this subparagraph.
    (b) Key district directors and Appeals offices are encouraged to 
request technical advice on any technical or procedural question arising 
in connection with any case described in subdivision (i) of this 
subparagraph which cannot be resolved on the basis of law, regulations, 
or a clearly applicable revenue ruling or other precedent issued by the 
National Office. However, in Exempt Organization cases concerning 
qualification for exemption or foundation status, key district directors 
and Appeals offices must request technical advice on any issue that is 
not covered by published precedent or on which nonuniformity may exist. 
Requests for technical advice should be made at the earliest possible 
stage of the proceedings.
    (iii) Requesting technical advice. (a) It is the responsibility of 
the key district office or the Appeals office to determine whether 
technical advice is to be requested on any issue before that office. 
However, while the case is under the jurisdiction of the key district 
director or the Appeals office, an employee plan/organization or its 
representative may request that an issue

[[Page 65]]

be referred to the National Office for technical advice on the grounds 
that a lack of uniformity exists as to the disposition of the issue, or 
that the issue is so unusual or complex as to warrant consideration by 
the National Office. This request should be made at the earliest 
possible stage of the proceedings. While plans/organizations are 
encouraged to make written requests setting forth the facts, law, and 
argument with respect to the issue, and reason for requesting National 
Office advice, a plan/organization may make the request orally. If, 
after considering the plan's/organization's request, the examiner or the 
Appeals Officer is of the opinion that the circumstances do not warrant 
referral of the case to the National Office, he/she will so advise the 
plan/organization. (See subdivision (iv) of this subparagraph for a 
plan's/organization's appeal rights where the examiner or Appeal Officer 
declines to request technical advice.)
    (b) When technical advice is to be requested, whether or not upon 
the request of the plan/organization, the plan/organization will be so 
advised, except as noted in (j) of this subdivision. If the key district 
office or the Appeals office initiates the action, the plan/organization 
will be furnished a copy of the statement of the pertinent facts and the 
question or questions proposed for submission to the National Office. 
The request for advice should be so worded as to avoid possible 
misunderstanding, in the National Office, of the facts or of the 
specific point or points at issue.
    (c) After receipt of the statement of facts and specific questions, 
the plan/organization will be given 10 calendar days in which to 
indicate in writing the extent, if any, to which it may not be in 
complete agreement. An extension of time must be justified by the plan/
organization in writing and approved by the Chief, Employee Plans and 
Exempt Organizations Division (in the district office) or the Chief, 
Appeals Office, as the case may be. Every effort should be made to reach 
agreement as to the facts and specific points at issue. If agreement 
cannot be reached, the plan/organization may submit, within 10 calendar 
days after receipt of notice from the key district director or the 
Appeals office, a statement of its understanding as to the specific 
point or points at issue which will be forwarded to the National Office 
with the request for advice. An extension of time must be justified by 
the plan/organization in writing and approved by the Chief, Employee 
Plans and Exempt Organizations Division or the Chief, Appeals Office.
    (d) If the plan/organization initiates the action to request advice, 
and its statement of the facts and point or points at issue are not 
wholly acceptable to the key district office or the Appeals office, the 
plan/organization will be advised in writing as to the areas of 
disagreement. The plan/organization will be given 10 calendar days after 
receipt of the written notice to reply to such notice. An extension of 
time must be justified by the plan/organization in writing and approved 
by the Chief, Employee Plans and Exempt Organizations Division or the 
Chief, Appeals Office. If agreement cannot be reached, both the 
statements of the plan/organization and the key district office or the 
Appeals office will be forwarded to the National Office.
    (e)(1) In the case of requests for technical advice subject to the 
disclosure provisions of section 6110 of the Code, the plan/organization 
must also submit, within the 10-day period referred to in (c) and (d) of 
this subdivision, whichever applicable (relating to agreement by the 
plan/organization with the statement of facts and points submitted in 
connection with the request for technical advice) the statement 
described in (f) of this subdivision of proposed deletions pursuant to 
section 6110(c) of the Code. If the statement is not submitted, the 
plan/organization will be informed by the key district director or the 
Appeals office that the statement is required. If the key district 
director or the Appeals office does not receive the statement within 10 
days after the plan/organization has been informed of the need for the 
statement, the key district director or the Appeals office may decline 
to submit the request for technical advice. If the key district director 
or the Appeals office decides to request technical advice in a case 
where the plan/organization has not submitted the statement of

[[Page 66]]

proposed deletions, the National Office will make those deletions which 
in the judgment of the Commissioner are required by section 6110(c) of 
the Code.
    (2) The requirements included in this subparagraph, relating to the 
submission of statements and other material with respect to proposed 
deletions to be made from technical advice memoranda before public 
inspection is permitted to take place, do not apply to requests made by 
the key district director before November 1, 1976, or requests for any 
document to which section 6104 of the Code applies.
    (f) In order to assist the Internal Revenue Service in making the 
deletions, required by section 6110(c) of the Code, from the text of 
technical advice memoranda which are open to public inspection pursuant 
to section 6110(a) of the Code, there must accompany requests for such 
technical advice either a statement of the deletions proposed by the 
plan/organization, or a statement that no information other than names, 
addresses, and identifying numbers need be deleted. Such statements 
shall be made in a separate document. The statement of proposed 
deletions shall be accompanied by a copy of all statements of facts and 
supporting documents which are submitted to the National Office pursuant 
to (c) or (d) of this subdivision, on which shall be indicated, by the 
use of brackets, the material which the plan/organization indicates 
should be deleted pursuant to section 6110(c) of the Code. The statement 
of proposed deletions shall indicate the statutory basis for each 
proposed deletion. The statement of proposed deletions shall not appear 
or be referred to anywhere in the request for technical advice. If the 
plan/organization decides to request additional deletions pursuant to 
section 6110(c) of the Code prior to the time the National Office 
replies to the request for technical advice, additional statements may 
be submitted.
    (g) If the plan/organization has not already done so, it may submit 
a statement explaining its position on the issues, citing precedents 
which it believes will bear on the case. This statement will be 
forwarded to the National Office with the request for advice. If it is 
received at a later date, it will be forwarded for association with the 
case file.
    (h) At the time the plan/organization is informed that the matter is 
being referred to the National Office, it will also be informed of the 
right to a conference in the National Office in the event an adverse 
decision is indicated, and will be asked to indicate whether a 
conference is desired.
    (i) Generally, prior to replying to the request for technical 
advice, the National Office shall inform the plan/organization orally or 
in writing of the material likely to appear in the technical advice 
memorandum which the plan/organization proposed be deleted but which the 
Internal Revenue Service determined should not be deleted. If so 
informed, the plan/organization may submit within 10 days any further 
information, arguments, or other material in support of the position 
that such material be deleted. The Internal Revenue Service will 
attempt, if feasible, to resolve all disagreements with respect to 
proposed deletions prior to the time the National Office replies to the 
request for technical advice. However, in no event shall the plan/
organization have the right to a conference with respect to resolution 
of any disagreements concerning material to be deleted from the text of 
the technical advice memorandum, but such matters may be considered at 
any conference otherwise scheduled with respect to the request.
    (j) The provisions of (a) through (i) of this subdivision, relating 
to the referral of issues upon request of the plan/organization, 
advising plans/organizations of the referral of issues, the submission 
of proposed deletions, and the granting of conferences in the National 
Office, are not applicable to technical advice memoranda described in 
section 6110(g)(5)(A) of the Code, relating to cases involving criminal 
or civil fraud investigations and jeopardy or termination assessments. 
However, in such cases the plan/organization shall be allowed to provide 
the statement of proposed deletions to the National Office upon the 
completion of all proceedings with respect to the investigations or 
assessments, but prior to the date on which the Commissioner mails the 
notice pursuant to section 6110(f)(1) of the

[[Page 67]]

Code of intention to disclose the technical advice memorandum.
    (k) Form 4463, Request for Technical Advice, should be used for 
transmitting requests for technical advice to the National Office.
    (iv) Appeal by plans/organizations of determinations not to seek 
technical advice. (a) If the plan/organization has requested referral of 
an issue before a key district office or an Appeals office to the 
National Office for technical advice, and after consideration of the 
request the examiner or the Appeals Officer is of the opinion that the 
circumstances do not warrant such referral, he/she will so advise the 
plan/organization.
    (b) The plan/organization may appeal the decision of the examiner or 
the Appeals Officer not to request technical advice by submitting to the 
relevant official, within 10 calendar days after being advised of the 
decision, a statement of the facts, law, and arguments with respect to 
the issue, and the reasons why the plan/organization believes the matter 
should be referred to the National Office for advice. An extension of 
time must be justified by the plan/organization in writing and approved 
by the Chief, Employee Plans and Exempt Organizations Division of the 
Chief, Appeals Office.
    (c) The examiner or the Appeals Officer will submit the statement of 
the plan/organization to the Chief, Employee Plans and Exempt 
Organizations Division or the Chief, Appeals Office, accompanied by a 
statement of the official's reasons why the issue should not be referred 
to the National Office. The Chief will determine, on the basis of the 
statements submitted, whether technical advice will be requested. If the 
Chief determines that technical advice is not warranted, that official 
will inform the plan/organization in writing that he/she proposes to 
deny the request. In the letter to the plan/organization the Chief will 
(except in unusual situations where such action would be prejudicial to 
the best interests of the Government) state specifically the reasons for 
the proposed denial. The plan/organization will be given 15 calendar 
days after receipt of the letter in which to notify the Chief whether it 
agrees with the proposed denial. The plan/organization may not appeal 
the decision of the Chief, Employee Plans and Exempt Organizations 
Division, or of the Chief, Appeals Office, not to request technical 
advice from the National Office. However, if the plan/organization does 
not agree with the proposed denial, all data relating to the issue for 
which technical advice has been sought, including the plan's/
organization's written request and statements, will be submitted to the 
National Office, Attention: Director, Exempt Organizations or Employee 
Plans Division or Actuarial Division or, in a section 521 case, 
Attention: Director, Corporation Tax Division for review. After review 
in the National Office, the submitting office will be notified whether 
the proposed denial is approved or disapproved.
    (d) While the matter is being reviewed in the National Office, the 
key district office or the Appeals office will suspend action on the 
issue (except where the delay would prejudice the Government's 
interests) until it is notified of the National Office decision. This 
notification will be made within 30 days after receipt of the data in 
the National Office. The review will be solely on the basis of the 
written record and no conference will be held in the National Office.
    (v) Conference in the National Office. (a) If, after a study of the 
technical advice request, it appears that advice adverse to the plan/
organization should be given and a conference has been requested, the 
plan/organization will be notified of the time and place of the 
conference. If conferences are being arranged with respect to more than 
one request for advice involving the same plan/organization, they will 
be so scheduled as to cause the least inconvenience to the plan/
organization. The conference will be arranged by telephone, if possible, 
and must be held within 21 calendar days after contact has been made. 
Extensions of time will be granted only if justified in writing by the 
plan/organization and approved by the appropriate branch chief.
    (b) A plan/organization is entitled, as a matter of right, to only 
one conference in the National Office unless one of the circumstances 
discussed in

[[Page 68]]

(c) of this subdivision exists. This conference will usually be held at 
the branch level in the appropriate division in the Office of the 
Assistant Commissioner (Employee Plans and Exempt Organizations) or, in 
section 521 cases, in the Office of the Assistant Commissioner 
(Technical), and will usually be attended by a person who has authority 
to act for the branch chief. In appropriate cases the examiner or the 
Appeals Officer may also attend the conference to clarify the facts in 
the case. If more than one subject is discussed at the conference, the 
discussion constitutes a conference with respect to each subject. At the 
request of the plan/organization or its representative, the conference 
may be held at an earlier stage in the consideration of the case than 
the Service would ordinarily designate. A plan/organization has no 
``right'' of appeal from an action of a branch to the director of a 
division or to any other National Office official.
    (c) In the process of review of a holding proposed by a branch, it 
may appear that the final answer will involve a reversal of the branch 
proposal with a result less favorable to the plan/organization. Or it my 
appear that an adverse holding proposed by a branch will be approved, 
but on a new or different issue or on different grounds than those on 
which the branch decided the case. Under either of these circumstances, 
the plan/organization or its representative will be invited to another 
conference. The provisions of this subparagraph limiting the number of 
conferences to which a plan/organization is entitled will not foreclose 
inviting the plan/organization to attend further conferences when, in 
the opinion of National Office personnel, such need arises. All 
additional conferences of this type discussed are held only at the 
invitation of the Service.
    (d) It is the responsibility of the plan/organization to furnish to 
the National Officer; within 21 calendar days after the conference, a 
written record of any additional data, line of reasoning, precedents, 
etc., that were proposed by the plan/organization and discussed at the 
conference but were not previously or adequately presented in writing. 
Extensions of time will be granted only if justified in writing by the 
plan/organization and approved by the appropriate branch chief. Any 
additional material and a copy thereof should be addressed to and sent 
to the National Office which will forward the copy to the appropriate 
key district director or Appeals office. The key district director or 
the Appeals office will be requested to give the matter prompt 
attention, will verify the additional facts and data, and will comment 
on it to the extent deemed appropriate.
    (e) A plan/organization or its representative desiring to obtain 
information as to the status of its case (other than a section 521 case) 
may do so by contacting the following offices with respect to matters in 
the areas of their responsibility:

 
                                              Telephone numbers, (Area
                 Official                             Code 202)
 
Chief, Employee Plans Technical Branch      566-3871.
Chief, Exempt Organizations Technical       566-3856 or 566-3593.
 Branch
Director, Actuarial Division                566-4311
 


An organization or its representative desiring to obtain information as 
to the status of its section 521 case may do so by contacting the 
Director, Corporation Tax Division (202-566-4504 or 566-4505).
    (vi) Preparation of technical advice memorandum by the National 
Office. (a) Immediately upon receipt in the National Office, the 
employee to whom the case is assigned will analyze the file to ascertain 
whether it meets the requirements of subdivision (iii) of this 
subparagraph. If the case is not complete with respect to any 
requirement in subdivision (iii) (a) through (d) of this subparagraph, 
appropriate steps will be taken to complete the file. If any request for 
technical advice does not comply with the requirements of subdivision 
(iii)(e) of this subparagraph, if applicable, relating to the statement 
of proposed deletions, the National Office will make those deletions 
from the technical advice memorandum which in the judgment of the 
Commissioner are required by section 6110(c) of the Code.
    (b) If the plan/organization has requested a conference in the 
National Office, the procedures in subdivision (v) of this subparagraph 
will be followed.

[[Page 69]]

    (c) Replies to requests for technical advice will be addressed to 
the key district director or to the Appeals office and will be drafted 
in two parts. Each part will identify the plan/organization by name, 
address, identification number, and year or years involved. The first 
part (hereafter called the ``technical advice memorandum'') will contain 
(1) a recitation of the pertinent facts having a bearing on the issue; 
(2) a discussion of the facts, precedents, and reasoning of the National 
Office; and (3) the conclusions of the National Office. The conclusions 
will give direct answers, whenever possible, to the specific questions 
of the key district director or the Appeals office. The discussion of 
the issues will be in such detail that the key district director or the 
Appeals office is apprised of the reasoning underlying the conclusion. 
There shall accompany the technical advice memorandum, where applicable, 
a notice, pursuant to section 6110(f)(1) of the Code, of intention to 
disclose the technical advice memorandum (including a copy of the 
version proposed to be open to public inspection and notations of third 
party communications pursuant to section 6110 (d) of the Code) which the 
key district director or the Appeals office will forward to the plan/
organization at such time that it furnishes a copy of the technical 
advice memorandum to the plan/organization pursuant to (e) of this 
subdivision and subdivision (vii)(b) of this subparagraph.
    (d) The second part of the reply will consist of a transmittal 
memorandum. In the unusual cases it will serve as a vehicle for 
providing the key district office or Appeals office administrative 
information or other information which, under the nondisclosure 
statutes, or for other reasons, may not be discussed with the plan/
organization.
    (e) It is the general practice of the Service to furnish a copy of 
the technical advice memorandum to the plan/organization after it has 
been adopted by the key district director or the Appeals office. 
However, in the case of technical advice memoranda described in section 
6110(g)(5)(A) of the Code, relating to cases involving criminal or civil 
fraud investigations and jeopardy or termination assessments, a copy of 
the technical advice memorandum shall not be furnished the plan/
organization until all proceedings with respect to the investigations or 
assessments are completed.
    (f) After receiving the notice, pursuant to section 6110 (f)(1) of 
the Code, of intention to disclose the technical advice memorandum (if 
applicable), the plan/organization, if desiring to protest the 
disclosure of certain information in the memorandum, must, within 20 
days after the notice is mailed, submit a written statement identifying 
those deletions not made by the Internal Revenue Service which the plan/
organization believes should have been made. The plan/organization shall 
also submit a copy of the version of the technical advice memorandum 
proposed to be open to public inspection on which it indicates, by the 
use of brackets, the deletions proposed by the plan/organization but 
which have not been made by the Internal Revenue Service. Generally, the 
Internal Revenue Service will not consider the deletion of any material 
which the plan/organization did not, prior to the time when the National 
Office sent its reply to the request for technical advice to the key 
district director or the Appeals office, propose be deleted. The 
Internal Revenue Service shall, within 20 days after receipt of the 
response by the plan/organization to the notice pursuant to section 
6110(f)(1) of the Code (if applicable), mail to the plan/organization 
its final administrative conclusion regarding the deletions to be made.
    (vii) Action on technical advice in key district offices and in 
Appeals offices. (a) Unless the key district director or the Chief, 
Appeals office, feels that the conclusions reached by the National 
Office in a technical advice memorandum should be reconsidered and 
promptly requests such reconsideration, the key district office or the 
Appeals office will proceed to process the case on the basis of the 
conclusions expressed in the technical advice memorandum. The effect of 
technical advice on the plan's/organization's case once the technical 
advice memorandum is adopted is set forth in subdivision (viii) of this 
subparagraph.

[[Page 70]]

    (b) The key district director or the Appeals office will furnish the 
plan/organization a copy of the technical advice memorandum described in 
subdivision (vi)(c) of this subparagraph and the notice pursuant to 
section 6110(f)(1) of the Code (if applicable) of intention to disclose 
the technical advice memorandum (including a copy of the version 
proposed to be open to public inspection and notations of third party 
communications pursuant to section 6110(d) of the Code). The preceding 
sentence shall not apply to technical advice memoranda involving civil 
fraud or criminal investigations, or jeopardy or termination 
assessments, as described in subdivision (iii)(j) of this subparagraph 
(except to the extent provided in subdivision (vi)(e) of this 
subparagraph) or to documents to which section 6104 of the Code applies.
    (c) In those cases in which the National Office advises the key 
district director or the Appeals office that it should not furnish a 
copy of the technical advice memorandum to the plan/organization, the 
key district director or the Appeals office will so inform the plan/
organization if it requests a copy.
    (viii) Effect of technical advice. (a) A technical advice memorandum 
represents an expression of the views of the Service as to the 
application of law, regulations, and precedents to the facts of a 
specific case, and is issued primarily as a means of assisting Service 
officials in the examination and closing of the case involved. In cases 
under this subparagraph concerning a plan's/organization's qualification 
or an organization's status, the conclusions expressed in a technical 
advice memorandum are final and will be followed by the key district 
office or the Appeals office.
    (b) Unless otherwise stated, a hold ing in a technical advice 
memorandum will be applied retroactively. Moreover, where the plan/
organization had previously been issued a favorable ruling or 
determination letter (whether or not it was based on a previous 
technical advice memorandum) concerning that transaction, its purpose, 
or method of operation, the holding in a technical advice memorandum 
that is adverse to the plan/organization is also applied retroactively 
unless the Assistant Commissioner or Deputy Assistant Commissioner 
(Employee Plans and Exempt Organizations) or, in a section 521 case, the 
Assistant Commissioner or Deputy Assistant Commissioner (Technical) 
exercises the discretionary authority under section 7805(b) of the Code 
to limit the retroactive effect of the holding as illustrated, in the 
case of rulings, in paragraph (l)(5) of this section.
    (c) Technical advice memoranda often form the basis for revenue 
rulings. For the description of revenue rulings and the effect thereof, 
see Sec. Sec. 601.601 (d)(2)(i)(a) and 601.601 (d)(2)(v).
    (d) A key district director or an Appeals office may raise an issue 
in a taxable period, even though technical advice may have been asked 
for and furnished with regard to the same or a similar issue in any 
other taxable period. However, if the proposal by the key district 
director or the Appeals office is contrary to a prior technical advice 
or ruling issued to the same plan/organization, the proposal must be 
submitted to the National Office. See Sec. 601.106(a)(1)(iv)(b) and 
subdivision (i)(d) of this subparagraph.
    (o) Employees' trusts or plans--(1) In general. Paragraph (o) 
provides procedures relating to the issuance of determination letters 
with respect to the qualification of retirement plans. Paragraph (o)(2) 
of this section sets forth the authority of key district directors to 
issue determination letters. Paragraph (o)(3) provides instructions to 
applicants, including which forms to file, where such forms must be 
filed, and requirements for giving notice to interested parties. 
Paragraph (o)(5) describes the administrative remedies available to 
interested parties and the Pension Benefit Guaranty Corporation. 
Paragraphs (o)(6) describes the administrative appeal rights available 
to applicants. Paragraph (o)(7) provides for the issuance of notice of 
final determination. Paragraph (o)(8) describes the documents which will 
make up the administrative record. Paragraph (o)(9) describes the notice 
of final determination. Paragraph (o)(10) sets forth the actions that 
will be necessary on the part of applicants, interested parties, and the 
Pension Benefit Guaranty Corporation in order for each to exhaust

[[Page 71]]

the administrative remedies within the meaning of section 7476(b)(3) of 
the Code.
    (2) Determination letters. (i) The district directors of the key 
district offices (described in paragraph (o)(4) of this section) shall 
have the authority to issue determination letters involving the 
provisions of sections 401, 403 (a), 405, and 501(a) of the Internal 
Revenue Code of 1954 with respect to:
    (a) Initial qualification of stock bonus, pension, profit-sharing, 
annuity, and bond purchase plans;
    (b) Initial exemption from Federal income tax under section 501(a) 
of trusts forming a part of such plans, provided that the determination 
does not involve application of section 502 (feeder organizations) or 
section 511 (unrelated business income), or the question of whether a 
proposed transaction will be a prohibited transaction under section 503;
    (c) Compliance with the applicable requirements of foreign situs 
trusts as to taxability of beneficiaries (section 402(c)) and deductions 
for employer contributions (section 404(a)(4)) in connection with a 
request for a determination letter as to the qualification of a 
retirement plan;
    (d) Amendments, curtailments, or terminations of such plans and 
trusts.
    (ii) Determination letters authorized by paragraph (o)(2)(i) of this 
section do not include determinations or opinions relating to other 
inquiries with respect to plans or trusts. Thus, except as specifically 
provided in paragraph (o)(2)(i) of this section, key district directors 
may not issue determination letters relating to issues under other 
sections of the Code, such as sections 72, 402 through 404, 412, 502, 
503, and 511 through 515, unless such determination letters are 
otherwise authorized under paragraph (c) of this section.
    (iii) If, during the consideration of a case described in paragraph 
(o)(2)(i) of this section by a key district director, the applicant 
believes that the case involves an issue with respect to which referral 
for technical advice is appropriate, the applicant may ask the district 
director to request technical advice from the National Office. The 
district director shall advise the applicant of its right to request 
referral of the issue to the National Office for technical advice. The 
technical advice provisions applicable in these cases are set forth in 
paragraph (n)(9) of this section. If technical advice is issued, the 
decision of the National Office is final and the applicant may not 
thereafter appeal the issue to the Appeals office. See Sec. 
601.106(a)(1)(iv)(a) and paragrph (o)(6) of this section
    (3) Instructions to taxpayers. (i) If an applicant for a 
determination letter does not comply with all the provisions of this 
paragraph, the district director, in his discretion, may return the 
application and point out to the applicant those provisions which have 
not been met. If such a request is returned to the applicant, the 270 
day period described in section 7476(b)(3) will not begin to run until 
such time as the provisions of this paragraph are complied with.
    (ii) An applicant requesting a determination letter must file with 
the appropriate district director specified in paragraph (o)(3)(xii) of 
this section the application form required by paragraphs (o)(3) (iii) 
through (x) of this section including all information and documents 
required by such form. (See section 6104 and the regulations thereunder 
for provisions relating to the extent to which information submitted to 
the Internal Revenue Service in connection with the application for 
determination may be subject to public inspection.) However, before 
filing such application, the applicant must comply with the provisions 
of paragraphs (o)(3) (xiv) through (xx) of this section (relating to 
notification of interested parties). (See paragraph (o)(5)(vi) of this 
section with respect to the effective date of paragraphs (o) (3) (xiv) 
through (xx) of this section.)
    (iii) Paragraphs (o)(3) (iv)-(vi), (viii), and (ix) apply only to 
applications for determinations in respect of plan years to which 
section 410 of the Code does not apply. Paragraph (o)(3)(x) applies only 
to applications for determinations in respect of plan years to which 
section 410 applies. Paragraph (o)(3)(vii) applies whether or not the 
application is for a determination in respect of plan years to which 
section 410 applies. For this purpose, section 410 will be considered to 
apply with respect to a

[[Page 72]]

plan year if an election has been made under section 1017(d) of the 
Employee Retirement Income Security Act of 1974 to have section 410 
apply to such plan year, whether or not the election is conditioned upon 
the issuance by the Commissioner of a favorable determination. For 
purposes of this paragraph (o)(3), in the case of an organization 
described in section 410(c)(1), section 410 will be considered to apply 
to a plan year of such organization for any plan year to which section 
410(c)(2) applies to such plan.
    (iv) If the request relates to the initial qualification of an 
individually designed plan, a subsequent amendment thereto, or 
compliance with the requirements for a foreign situs trust, the employer 
should (a) if the plan does not include self-employed individuals, file 
Form 4573, Application for Determination--Individually Designed Plan 
(not covering self-employed individuals), or (b) if the plan includes 
self-employed individuals, file Form 4574, Application for 
Determination--Individually Designed Plan Covering Self-Employed 
Individuals, except that where a bond purchase plan includes a self-
employed individual, file Form 4578, Application for Approval of Bond 
Purchase Plan. (See paragraph (o)(3)(iii) for plan years to which this 
paragraph (o)(3)(iv) applies.)
    (v) If the request involves a curtailment or termination of the plan 
(or complete discontinuance of contributions), the applicant should file 
Form 4576, Application for Determination--Termination or Curtailment of 
Plan. This form will also be applicable to the termination of a plan 
that includes self-employed individuals. (See paragraph (o)(3)(iii) of 
this section for plan years to which this paragraph (o)(3)(v) applies.)
    (vi) An association of employers or a board of trustees should file 
Form 4577, Application for Determination--Industry-Wide Plan and Trust, 
if the request relates to the initial qualification or subsequent 
amendments of an industry-wide or area-wide union negotiated plan. (See 
paragraph (o)(3)(iii) of this section for plan years to which this 
paragraph (o)(3)(vi) applies.)
    (vii) If the request relates to the qualification of a bond purchase 
plan, which includes self-employed individuals, the applicant should 
file, in duplicate, Form 4578, Application for Approval of Bond Purchase 
Plan that includes Self-Employed Individuals. When properly completed, 
Form 4578 will constitute a bond purchase plan. (See paragraph 
(o)(3)(iii) for plan years to which this section (o)(3)(vii) applies.)
    (viii) An employer who desires a determination letter on his 
adoption of a master or prototype plan which is designed to satisfy 
section 401(a) or 403(a) but which is not designed to include self-
employed individuals within the meaning of section 401(c)(1) must file 
Form 4462, Employer Application--Determination as to Qualification of 
Pension, Annuity, or Profit-sharing Plan and Trust, and furnish a copy 
of the adoption agreement or other evidence of adoption of the plan and 
such additional information as the district director may require. (See 
paragraph (o)(3)(iii) of this section for plan years to which this 
paragraph (o)(3)(viii) applies.)
    (ix) An applicant who amends his adoption agreement under a master 
or prototype plan may request a determination letter as to the effect of 
such amendment by filing Form 4462 with his district director, together 
with a copy of the amendment and a summary of the changes. However, in 
the event an applicant desires to amend his adoption agreement under a 
master or prototype plan and such amendment is not contemplated or 
permitted under the plan, then such amendment will in effect substitute 
an individually designed plan for the master or prototype plan. (See 
paragraph (o)(3)(iii) of this section for plan years to which this 
paragraph (o)(3)(ix) applies.)
    (x) An applicant requesting a determination letter relating to a 
defined contribution plan, other than a letter on the qualification of a 
bond purchase plan, shall file in duplicate, Form 5301, Application for 
Determination of Defined Contribution Plan, and Form 5302, Employee 
Census. Those forms are to be filed in accordance with the instructions 
therefor and accompanied by any schedules or additional material 
prescribed in those instructions. (See paragraph (o)(3)(iii) of this 
section

[[Page 73]]

for plan years to which this paragraph (o)(3)(x) applies.)
    (xi) When, in connection with an application for a determination on 
the qualification of the plan, it is necessary to determine whether an 
organization (including a professional service organization) is a 
corporation or an association classified as a corporation under Sec. 
301.7701-2 of this chapter of the Regulations on Procedure and 
Administration, and whether an employer-employee relationship exists 
between it and its associates, the district director will make such 
determination. In such cases, the application with respect to the 
qualification of the plan should be filed in accordance with the 
provisions herein set forth and should contain the information and 
documents specified in the application. It should also be accompanied by 
such information and copies of documents as the organization deems 
appropriate to establish its status. The Service may, in addition, 
require any further information that is considered necessary to 
determine the status of the organization, the employment status of the 
individuals involved, or the qualification of the plan. After the 
taxable status of the organizations and the employer-employee 
relationship have been determined, the key district director may issue a 
determination letter as to the qualification of the plan.
    (xii) Requests for determination letters on matters authorized by 
paragraph (o)(2) of this section, and the necessary supporting data, are 
to be addressed to the district director (whether or not such district 
director is the director of a key district) specified below (determined 
without regard to the application of section 414 (b) or (c) to the 
plan):
    (a) In the case of a plan for a single employer, the request shall 
be addressed to the district director for the district in which such 
employer's principal place of business is located.
    (b) In the case of a single plan for a parent company and its 
subsidiaries, the request shall be addressed to the district director 
for the district in which the principal place of business of the parent 
company is located, whether separate or consolidated returns are filed.
    (c) In the case of a plan established or proposed for an industry by 
all subscribing employers whose principal places of business are located 
within more than one district, the request shall be addressed to the 
district director for the district in which is located the principal 
place of business of the trustee, or if more than one trustee, the usual 
meeting place of the trustees.
    (d) In the case of a pooled fund arrangement (individual trusts 
under separate plans pooling their funds for investment purposes through 
a master trust), the request on behalf of the master trust shall be 
addressed to the district director for the district where the principal 
place of business of such trust is located. Requests on behalf of the 
participating trusts and related plans will be addressed as otherwise 
provided herein.
    (e) In the case of a plan of multiple employers (other than a master 
or prototype plan) not otherwise herein provided for, the request shall 
be addressed to the district director for the district in which is 
located the principal place of business of the trustee, or if not 
trusteed or if more than one trustee, the principal or usual meeting 
place of the trustees or plan supervisors.
    (xiii) The applicant's request for a determination letter may be 
withdrawn by a written request at any time prior to appealing a proposed 
determination to the regional office as described in paragraph (o)(6) of 
this section. In the case of such a withdrawal the Service will not 
render a determination of any type. A failure to render a determination 
as a result of such a withdrawal will not be considered a failure of the 
Secretary or his delegate to make a determination within the meaning of 
section 7476. In the case of a withdrawal the district director may 
consider the information submitted in connection with the withdrawn 
request in a subsequent audit or examination.
    (xiv) In the case of an application for a determination for plan 
years to which section 410 applies (see paragraph (o)(5)(vi) of this 
section), notice that an application for an advance determination 
regarding the qualification of plans described in section 401(a),

[[Page 74]]

403(a), or 405(a) is to be made must be given to all interested parties 
in the manner set forth in the regulations under section 7476 of the 
Code.
    (xv) When the notice referred to in paragraph (o)(3)(xiv) of this 
section is given in the manner set forth in Sec. 1.7476-2(c) of this 
chapter, such notice must be given not less than 10 days nor more than 
24 days prior to the date the application for a determination is made. 
See paragraph (o)(3)(xxi) of this section for determining when an 
application is made. If, however, an application is returned to the 
applicant for failure to adequately satisfy the notification requirement 
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 paragraph (o)(3)(xv) would not 
be met.
    (xvi) The notice referred to in paragraph (o)(3)(xiv) of this 
section shall be given in the manner prescribed in Sec. 1.7476-2 of 
this chapter and shall contain the following information:
    (a) A brief description identifying the class or classes of 
interested parties to whom the notice is addressed (e.g., all present 
employees of the employer, all present employees eligible to 
participate);
    (b) The name of the plan, the plan identification number, and the 
name of the plan administrator;
    (c) The name and taxpayer identification number of the applicant;
    (d) That an application for a determination as to the qualified 
status of the plan is to be made to the Internal Revenue Service, 
stating whether the application relates to an initial qualification, a 
plan amendment or a plan termination, and the address of the district 
director to whom the application will be submitted;
    (e) A description of the class of employees eligible to participate 
under the plan;
    (f) Whether or not the Service has issued a previous determination 
as to the qualified status of the plan;
    (g) A statement that any person to whom the notice is addressed is 
entitled to submit, or request the Department of Labor to submit, to the 
district director described in paragraph (o)(3)(xvi)(d) of this section, 
a comment on the question of whether the plan meets the requirements for 
qualification under Part I of Subchapter D of Chapter 1 of the Internal 
Revenue Code of 1954; that two or more such persons may join in a single 
comment or request; and that if such a person or persons request the 
Department of Labor to submit a comment and that department declines to 
do so in respect of one or more matters raised in the request, the 
person or persons so requesting may submit a comment to the district 
director in respect of the matters on which the Department of Labor 
declines to comment;
    (h) That a comment to the district director or a request of the 
Department of Labor must be made according to the following procedures:
    (1) A comment to the district director must be received on or before 
the 45th day (specified by date) after the day on which the application 
for determination is received by the district director;
    (2) Or if the comment is being submitted on a matter on which the 
Department of Labor was first requested but declined to comment, on or 
before the later of such 45th day or the 15th day after the day on which 
the Department of Labor notifies such person or persons that it declines 
to comment, but in no event later than the 60th day (specified by date) 
after the day the application is received by the district director; and
    (3) A request of the Department of Labor to submit such a comment 
must be received by such department on or before the 25th day (specified 
by date) (or if the person or persons requesting the Department of Labor 
to submit such a comment wish to preserve their right to submit a 
comment to the district director in the event the Department of Labor 
declines to comment, on or before the 15th day (specified by date)) 
after the day the application is received by the district director;

[[Page 75]]

    (i) except to the extent there is included in the notice the 
additional informational materials which paragraphs (o) (3) (xviii), 
(xix), and (xx) of this section require to be made available to 
interested parties, a description of a reasonable procedure whereby such 
additional informational material will be made available to them (see 
paragraph (o)(3)(xvii) of this section).
    (xvii) The procedure referred to in paragraph (o)(3)(xvi)(i) of this 
section whereby the additional informational material required by 
paragraphs (o)(3)(xviii), (xix), and (xx) of this section will (to the 
extent not included in this 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. 
The procedure referred to in paragraph (o)(3)(xvi)(i) of this section 
must be immediately available to all interested parties and must be 
designed to supply them with such additional informational material in 
time for them to pursue their rights within the time period prescribed, 
and must be available until the earlier of the filing of a pleading 
commencing a declaratory judgment action under section 7476 with respect 
to the qualification of the plan or the ninety-second day after the day 
the notice of final determination is mailed to the applicant.
    (xviii) Unless provided in the notice, the following materials shall 
be made available to interested parties under a procedure described in 
paragraph (o)(3)(xviii) of this section:
    (a) An updated copy of the plan and the related trust agreement (if 
any);
    (b) The application for determination;

Provided, however, That if there would be less than 26 participants in 
the plan, as described in the application (including, as participants, 
retired employees and beneficiaries of deceased employees who have a 
nonforefeitable right to benefits under the plan and employees who would 
be eligible to participate upon making mandatory employee contributions, 
if any), then in lieu of making such materials 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: a description of the plan's requirements respecting 
eligibility for participation and benefits; a description of the 
provisions providing for nonforfeitable benefits; a description of the 
circumstances which may result in ineligibility, or denial or loss of 
benefits; a description of the source of financing of the plan and the 
identity of any organization through which benefits are provided; 
whether the applicant is claiming in his application that the plan meets 
the requirements of section 410(b) (1) (A) of the Code, and, if not, the 
coverage schedule required by the application in the case of plans not 
meeting the requirements of such section. However, once such an 
interested party or his designated representative receives a notice of 
final determination, the applicant must, upon request, make available to 
such interested party (regardless of whether or not the interested party 
is a participant in the plan and regardless of whether or not the plan 
has less than 26 participants) an updated copy of the plan and related 
trust agreement (if any) and the application for determination. 
Information of the type described in section 6104(a) (1) (D) of the Code 
should not be included in the application, plan, or related trust 
agreement submitted to the Internal Revenue Service. Accordingly, such 
information should not be included in any of the materials required by 
this paragraph (o)(3) to be available to interested parties. There may 
be excluded from such material information contained in Form 5302 
(Employee Census). However, information showing the number of 
individuals covered and not covered in the plan, listed by compensation 
range, shall not be excluded.
    (xix) Unless provided in the notice, there shall be made available 
to interested parties under a procedure described in paragraph 
(o)(3)(xvii) of this section, any additional document dealing with the 
application which is submitted by or for the applicant to the Internal 
Revenue Service, or furnished

[[Page 76]]

by the Internal Revenue Service to the applicant; provided, however, if 
there would be less than 26 participants in the plan as described in the 
application (including, as participants, retired employees and 
beneficiaries of deceased employees who have a nonforfeitable right to 
benefits under the plan and employees who would be eligible to 
participate upon making mandatory employee contributions, if any), such 
additional documents need not be made available to interested parties 
who are not participants (as described above) until they or their 
designated representative, receive a notice of final determination. The 
applicant may also withhold from such inspection and copying, 
information described in section 6104(a) (1) (C) and (D) of the Code 
which may be contained in such additional documents.
    (xx) Unless provided in the notice, there shall be made available to 
all interested parties under a procedure described in paragraph 
(o)(3)(xvii) of this section, material setting forth the following 
information:
    (a) The rights of interested parties described in paragraph 
(o)(5)(i) of this section; and
    (b) The information provided in paragraphs (o)(5)(ii), (iii), (iv) 
and (v) of this section.
    (xxi) An application for an advance determination, a comment to the 
district director, or a request to the Department of Labor, shall be 
deemed made when it is received by the district director, or the 
Department of Labor. The notice to interested parties required by 
paragraph (o)(3)(xiv) of this section shall be deemed given when the 
notice is posted or sent to the person in the manner prescribed in Sec. 
1.7476-2 of this chapter. In any case where such an application, 
request, comment, or notice is sent by mail, it shall be deemed received 
as of the date of the postmark (or if sent by certified or registered 
mail, the date of certification or registration), if it is deposited in 
the mail in the United States in an envelope, or other appropriate 
wrapper first class postage prepaid, properly addressed. However, if 
such an application, request or comment is not received within a 
reasonable period from the date of postmark, the immediately preceding 
sentence shall not apply.
    (4) Key district offices. Following are the 19 key district offices 
that issue determination letters and the area covered:

 
              Key district(s)                   IRS districts covered
 
Central Region:
  Cincinnati..............................  Cincinnati, Louisville,
                                             Indianapolis
  Cleveland...............................  Cleveland, Parkersburg
  Detroit.................................  Detroit
Mid-Atlantic Region:
  Baltimore...............................  Baltimore (which includes
                                             the District of Columbia
                                             and Office of International
                                             Operations), Pittsburgh,
                                             Richmond
  Philadelphia............................  Philadelphia, Wilmington
  Newark..................................  Newark
Midwest Region:
  Chicago.................................  Chicago
  St. Paul................................  St. Paul, Fargo, Aberdeen,
                                             Milwaukee
  St. Louis...............................  St. Louis, Springfield, Des
                                             Moines, Omaha
North-Atlantic Region:
  Boston..................................  Boston, Augusta, Burlington,
                                             Providence, Hartford,
                                             Portsmouth
  Manhattan...............................  Manhattan
  Brooklyn................................  Brooklyn, Albany, Buffalo
Southeast Region:
  Atlanta.................................  Atlanta, Greensboro,
                                             Columbia, Nashville
  Jacksonville............................  Jacksonville, Jackson,
                                             Birmingham
Southwest Region:
  Austin..................................  Austin, New Orleans,
                                             Albuquerque, Denver,
                                             Cheyenne
  Dallas..................................  Dallas, Oklahoma City,
                                             Little Rock, Wichita
Western Region:
  Los Angeles.............................  Los Angeles, Phoenix,
                                             Honolulu
  San Francisco...........................  San Francisco, Salt Lake
                                             City, Reno
  Seattle.................................  Seattle, Portland,
                                             Anchorage, Boise, Helena
 

    (5) Administrative remedies of interested parties and the Pension 
Benefit Guaranty Corporation. (i) With respect to plan years to which 
section 410 applies (see paragraph (o)(5)(vi) of this section), persons 
who qualify as interested parties under the regulations issued under 
section 7476 and the Pension Benefit Guaranty Corporation shall have the 
following rights:
    (a) To submit to the district director for the district where an 
application for determination is filed, by the 45th day after the day on 
which the application is received by the district director, a written 
comment on said application, with respect to the qualification of the 
plan under Subchapter D of Chapter 1 of the Internal Revenue Code.
    (b) To request the Administrator of Pension and Welfare Benefit 
Programs, Department of Labor, 200 Constitution Avenue, NW, Washington, 
DC 20210, to

[[Page 77]]

submit to such district director such a written comment under the 
provisions of section 3001(b) (2) of the Employee Retirement Income 
Security Act of 1974. Such a request, if made by an interested party or 
parties, must be received by such department on or before the 25th day 
after the day said application is received by the district director. 
However, if such party or parties requesting the Department of Labor to 
submit such a comment wish to preserve their rights to submit a comment 
to the district director in the event the Department of Labor declines 
to comment (pursuant to paragraph (o)(5)(i) (c) of this section), such 
request must be received by such department on or before the 15th day 
after the day the application is received by the district director.
    (c) If a request described in paragraph (o)(5)(i)(b) of this section 
is made and the Department of Labor notifies the interested party or 
parties making the request that it declines to submit a comment on a 
matter concerning qualification of the plan which was raised in such 
request, to submit a written comment to the district director on such 
matter by the later of the 45th day after the day the application for 
determination is received by the district director or the 15th day after 
the day on which the Department of Labor notifies such party or parties 
that it declines to submit a comment on such matter, but, in no event 
later than the 60th day after the application for determination was 
received. (See paragraph (o)(5)(iii) of this section for determining 
when notice that the Department of Labor declines to comment is received 
by an interested party or parties.) Such a comment must comply with the 
requirements of paragraph (o)(5)(ii) of this section, and include a 
statement that the comment is being submitted on matters raised in a 
request to the Department of Labor on which that department declined to 
comment.
    (ii) A comment submitted by an interested party or parties to the 
district director must be in writing, signed by such party or parties or 
by an authorized representative of such party or parties (as provided in 
paragraph (e) (6) of this section), be addressed to the district 
director described in paragraph (o)(3)(xvi)(d) of this section, and 
contain the following:
    (a) The name or names of the interested party or parties making the 
comment;
    (b) The name of taxpayer identification number of the applicant 
making the application;
    (c) The name of the plan and the plan identification number;
    (d) Whether the party or parties submitting the comments are--
    (1) Employees eligible to participate under the plan,
    (2) Former employees or beneficiaries of deceased former employees 
who have a vested right to benefits under the plan, or
    (3) Employees not eligible to participate under the plan;
    (e) The specific matter or matters raised by the interested party or 
parties on the question of whether the plan meets the requirements for 
qualification under Part I of Subchapter D of the Code, and how such 
matter or matters relate to the interests of such party or parties 
making such comment.
    (f) The address of the interested party submitting the comment to 
which all correspondence, including a notice of the Internal Revenue 
Service's final determination with respect to qualification, should be 
sent. (See section 7476(b)(5) of the Code.) If more than one interested 
party submits the comment, they must designate a representative for 
receipt of such correspondence and notice on behalf of all interested 
parties submitting the said comment, and state the address of such 
representative. Such representative shall be one of the interested 
parties submitting the comment or the authorized representative.
    (iii) For purposes of paragraph (o)(3)(xvi)(h) and (o)(5)(i)(c), 
notice by the Department of Labor that it declines to comment shall be 
deemed given to the interested party designated to receive such notice 
when received by him.
    (iv) A request of the Department of Labor to submit a comment to the 
district director must be in writing, signed, and in addition to the 
information prescribed in paragraph (o)(5)(ii) of

[[Page 78]]

this section must also contain the address of the district director to 
whom the application was, or will be, submitted. The address designated 
for notice by the Internal Revenue Service will be used by the 
Department of Labor in communicating with the party or parties 
submitting the request.
    (v) The contents of written comments submitted by interested parties 
to the Internal Revenue Service pursuant to paragraphs (o)(5)(i)(a) and 
(c) will not be treated as confidential material and may be inspected by 
persons outside the Internal Revenue Service, including the applicant 
for the determination. Accordingly, designations of material as 
confidential or not to be disclosed, contained in such comments, will 
not be accepted. Thus, a person submitting a written comment should not 
include therein material that he considers to be confidential or 
inappropriate for disclosure to the public. It will be presumed by the 
Internal Revenue Service that every written comment submitted to it is 
intended by the party or parties submitting it to be subject in its 
entirety to public inspection and copying.
    (vi) (a) Paragraphs (o)(3)(xiv) through (xxi) and (o)(5) of this 
section apply to an application for an advance determination in respect 
of a plan year or years to which section 410 applies to the plan, 
whether or not such application is received by the district director 
before the first date on which such section applies to the plan.
    (b) For purposes of paragraph (o)(5)(vi)(a) of this section, section 
410 shall be considered to apply to a plan year if an election has been 
made under section 1017(d) of the Employee Retirement Income Security 
Act of 1974 to have section 410 apply to such plan year, whether or not 
the election is conditioned upon the issuance by the Commissioner of a 
favorable determination.
    (c) For purposes of paragraph (o)(5)(vi)(a) of this section, in the 
case of an organization described in section 410(c) (1), section 410 
will be considered to apply to a plan year of such organization for any 
plan year to which section 410(c) (2) applies to such plan.
    (vii) The Internal Revenue Service will provide to the applicant a 
copy of all comments on the application submitted pursuant to paragraph 
(o)(5)(i)(a), (b) or (c) of this section. In addition, the Internal 
Revenue Service will provide to the applicant a copy of all 
correspondence in respect of a comment between the Internal Revenue 
Service and a person submitting the comment.
    (6) Reference of matters to the Appeals office. (i) Where issues 
arise in a district director's office on matters within the 
contemplation of paragraph (o)(2)(i) of this section, and the key 
district director issues a notice of proposed determination which is 
adverse to the applicant, the applicant may appeal the proposed 
determination to the Appeals office. However, the applicant may not 
appeal a determination that is based on a National Office technical 
advice. See Sec. 601.106 (a)(1)(iv)(a) and paragraph (o)(2)(iii) of 
this section. The applicant shall notify the key district director that 
it intends to request Appeals office consideration by submitting the 
request, in writing, to the key district director within 30 days from 
issuance of the notice of proposed determination. The key district 
director will forward the request and the administrative record to the 
Appeals office and will so notify the applicant in writing. A failure by 
the applicant to request

Appeals office consideration will constitute a failure to exhaust 
available administrative remedies as required by section 7476(b)(3) and 
will thus preclude the applicant from seeking a declaratory judgment as 
provided under section 7476. (See paragraph (o)(10)(i)(c) of this 
section.)
    (ii) The request for Appeals office consideration must show the 
following:
    (a) Date of application for determination letter;
    (b) Name and address of the applicant and the name and address of 
the representative, if any, who has been authorized to represent the 
applicant as provided in paragraph (c)(6) of this section;
    (c) The key district office in which the case is pending;

[[Page 79]]

    (d) Type of plan (pension, annuity, profit-sharing, stock bonus, 
bond purchase, and foreign situs trusts), and type of action involved 
(initial qualification, amendment, curtailment, or termination);
    (e) Date of filing this request with the key district director and 
the date and symbols of the letter referred to in paragraph (o)(6)(i) of 
this section;
    (f) A complete statement of the issues and a presentation of the 
arguments in support of the applicant's position; and
    (g) Whether a conference is desired.
    (iii) After receipt of the administrative record in the Appeals 
office, the applicant will be afforded the opportunity for a conference, 
if a conference was requested. After full consideration of the entire 
administrative record, the Appeals office will notify the applicant in 
writing of the proposed decision and the reasons therefor and will issue 
a notice of final determination in accordance with the decision. 
However, if the proposed disposition by the Appeals office is contrary 
to a National Office technical advice concerning qualification, issued 
prior to the case, the proposed disposition will be submitted to the 
Assistant Commissioner (Employee Plans and Exempt Organizations) and the 
decision of that official will be followed by the Appeals office. See 
Sec. 601.106(a)(1)(iv)(b). Additionally, if the applicant believes that 
the case involves an issue with respect to which referral for technical 
advice is appropriate, the applicant may ask the appeals office to 
request technical advice from the National Office. The Appeals office 
shall advise the applicant of its right to request referral of the issue 
to the National Office for technical advice. The technical advice 
provisions applicable to these cases are set forth in paragraph (n)(9) 
of this section. If technical advice is issued, the decision of the 
National Office will be followed by the Appeals office. See paragraph 
(n)(9)(viii)(a) of this section.
    (iv) Applicants are advised to make full presentation of the facts, 
circumstances, the arguments at the initial level of consideration, 
since submission of additional facts, circumstances, and arguments at 
the Appeals office may result in suspension of Appeals procedures and 
referral of the case back to the key district for additional 
consideration.
    (7) Issuance of the notice of final determination. The key district 
director or Appeals office will send notice of the final determination 
to the applicant. The key district director will send notice of the 
final determination to the interested parties who have previously 
submitted comments on the application to the Internal Revenue Service 
pursuant to paragraph (o)(5)(i) (a) or (c) of this section (or to the 
persons designated by them to receive such notice), to the Department of 
Labor in the case of a comment submitted by that department upon the 
request of interested parties or the Pension Benefit Guaranty 
Corporation pursuant to paragraph (o)(5)(i)(b) of this section, and to 
the Pension Benefit Guaranty Corporation if it has filed a comment 
pursuant to paragraph (o)(5)(i)(a) of this section.
    (8) Administrative record. (i) In the case of a request for an 
advance determination in respect of a retirement plan, the determination 
of the district director or Appeals office on the qualification or 
nonqualification of the retirement plan shall be based solely on the 
facts contained in the administrative record. Such 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 
thereof made by the applicant during the proceedings within the Internal 
Revenue Service;
    (b) All other documents submitted to the Internal Revenue Service by 
or on behalf of the applicant in respect of the request for 
determination;
    (c) All written correspondence between the Internal Revenue Service 
and the applicant in respect of the request for determination and any 
other documents issued to the applicant from the Internal Revenue 
Service;
    (d) All written comments submitted to the Internal Revenue Service 
pursuant to paragraphs (o)(5)(i) (a), (b), and (c) of this section, and 
all correspondence in respect of comments submitted between the Internal 
Revenue Service and persons (including the Pension

[[Page 80]]

Benefit Guaranty Corporation and the Department of Labor) submitting 
comments pursuant to paragraphs (o)(5)(i) (a), (b), and (c) of this 
section;
    (e) In any case in which the Internal Revenue Service makes an 
investigation regarding the facts as represented or alleged by the 
applicant in his request for determination or in comments submitted 
pursuant to paragraphs (o)(5)(i) (a), (b), and (c) of this section, a 
copy of the official report of such investigation.
    (ii) 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 
Internal Revenue Service in respect of the application for 
determination; or
    (b) The filing of a petition with the United States Tax Court 
seeking a declaratory judgment in respect of the retirement plan.

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 and submitted to the 
Service shall not become a part of the administrative record and shall 
not be taken into account in the determination of the qualified status 
of the retirement plan by the district director or Appeals office.
    (9) Notice of final determination. For purposes of this paragraph 
(o), the notice of final determination shall be--
    (i) In the case of a final determination which is favorable to the 
applicant, the letter issued by the key district director or Appeals 
office (whether or not by certified or registered mail) which states 
that the applicant's plan satisfies the qualification requirements of 
the Internal Revenue Code.
    (ii) In the case of a final determination which is adverse to the 
applicant, the letter issued by certified or registered mail by the key 
district director or Appeals office, subsequent to a letter of proposed 
determination, stating that the applicant's plan fails to satisfy the 
qualification requirements of the Internal Revenue Code.
    (10) Exhaustion of administrative remedies. For purposes of section 
7476(b)(3), a petitioner shall be deemed to have exhausted the 
administrative remedies available to him in the Internal Revenue Service 
upon the completion of the steps described in paragraph (o)(10) (i), 
(ii), or (iii) of this section, subject, however, to paragraphs (o)(10) 
(iv) and (v) of this section. If an applicant, interested party, or the 
Pension Benefit Guaranty Corporation does not complete the applicable 
steps described below, such applicant, interested party, or the Pension 
Benefit Guaranty Corporation will not have exhausted available 
administrative remedies as required by section 7476(b)(3) and will thus 
be precluded from seeking a declaratory judgment under section 7476 
except to the extent that paragraph (o)(10) (iv)(b) or (v) of this 
section applies.
    (i) The administrative remedies of an applicant with respect to any 
matter relating to the qualification of a plan are:
    (a) Filing a completed application with the appropriate district 
director pursuant to paragraphs (o)(3) (iii) through (xii) of this 
section;
    (b) Compliance with the requirements pertaining to notice to 
interested parties as set forth in paragraphs (o)(3)(xiv) through 
(o)(3)(xxi) of this section;
    (c) An appeal to the Appeals office pursuant to paragraph (o)(6) of 
this section, in the event of a notice of proposed adverse determination 
from the district director.
    (ii) The administrative remedy of an interested party with respect 
to any matter relating to the qualification of the plan is submission to 
the district director of a comment raising such matter in accordance 
with paragraph (o)(5)(i)(a) of this section or requesting the Department 
of Labor to submit to the district director a comment with respect to 
such matter in accordance with paragraph (o)(5)(i)(b) of this section, 
and, if such department declines to comment, submission of such a 
comment in accordance with paragraph (o)(5)(i)(c) of this section, so 
that such comment may be considered by the Internal Revenue Service 
through the administrative process.

[[Page 81]]

    (iii) The administrative remedy of the Pension Benefit Guaranty 
Corporation with respect to any matter relating to the qualification of 
the plan is submission to the district director of a comment raising 
such matter in accordance with paragraph (o)(5)(i)(a) of this section or 
requesting the Department of Labor to submit to the district director a 
comment with respect to such matter in accordance with paragraph 
(o)(5)(i)(b) of this section, and, if such department declines to 
comment, submission of such a comment to the Internal Revenue Service 
directly, so that such comment may be considered by the Internal Revenue 
Service through the administrative process.
    (iv) An applicant, or an interested party, or the Pension Benefit 
Guaranty Corporation shall in no event be deemed to have exhausted his 
(its) administrative remedies prior to the earlier of:
    (a) The completion of all the steps described in paragraph (o)(11) 
(i), (ii), or (iii) of this section, whichever is applicable, subject, 
however, to paragraph (o)(11)(v), or
    (b) The expiration of the 270 day period described in section 
7476(b)(3), in a case where the completion of the steps referred to in 
paragraph (o)(11)(iv)(a) of this section shall not have occurred before 
the expiration of such 270 day period because of the failure of the 
Internal Revenue Service to proceed with due diligence.

The step described in paragraph (o)(10)(i)(c) of this section will not 
be considered completed until the Internal Revenue Service has had a 
reasonable time to act upon the appeal. In addition, the administrative 
remedies described in paragraphs (o)(11) (ii) and (iii) will not be 
considered completed until the Internal Revenue Service has had a 
reasonable time to consider the comments submitted pursuant to such 
paragraphs at each step of the administrative process described in 
paragraph (o)(11)(i).
    (v) The administrative remedy described in paragraph (o)(10)(i)(c) 
of this section will not be available to an applicant with respect to 
any issue on which technical advice from the National Office has been 
obtained.
    (p) Pension plans of self-employed individuals--(1) Rulings, 
determination letters, and opinion letters. (i) The National Office of 
the Service, upon request, will furnish a written opinion as to the 
acceptability (for the purpose of sections 401 and 501(a) of the Code) 
of the form of any master or prototype plan designed to include groups 
of self-employed individuals who may adopt the plan, where the plan is 
submitted by a sponsor that is a trade or professional association, 
bank, insurance company, or regulated investment company as defined in 
section 851 of the Code. Each opinion letter will bear an identifying 
plan serial number. If the trustee or custodian has been designated at 
the time of approval of a plan as to form, a ruling will be issued as to 
the exempt status of such trust or custodial account which forms part of 
the master or prototype plan. As used here, the term ``master plan'' 
refers to a standardized form of plan, with a related trust or custodial 
agreement, where indicated, administered by the sponsoring organization 
for the purpose of providing plan benefits on a standardized basis. The 
term ``prototype plan'' refers to a standardized form of plan, with or 
without a related form of trust or custodial agreement, that is made 
available by the sponsoring organization, for use without change by 
employers who wish to adopt such a plan, and which will not be 
administered by the sponsoring organization that makes such form 
available. The degree of relationship among the separate employers 
adopting either a master plan or prototype plan or to the sponsoring 
organization is immaterial.
    (ii) Since a determination as to the qualification of a particular 
employer's plan can be made only with regard to facts peculiar to that 
employer, a letter expressing the opinion of the Service as to the 
acceptability of the form of a master or prototype plan will not 
constitute a ruling or determination as to the qualification of a plan 
as adopted by any individual employer or as to the exempt status of a 
related trust or custodial account. However, where an employer adopts a 
master or prototype plan and any related prototype trust or custodial 
account previously approved as to form, and observes the provisions

[[Page 82]]

thereof, such plan and trust or custodial account will be deemed to 
satisfy the requirements of sections 401 and 501(a) of the Code, 
provided the eligibility requirements and contributions on benefits 
under the plan for owner-employees are not more favorable than for other 
employees, including those required to be covered under plans of all 
businesses controlled by such owner-employees.
    (iii) Although district directors no longer make advance 
determinations on plans of self-employed individuals who have adopted 
previously approved master or prototype plans, they will continue, upon 
request, to issue determination letters as to the qualification of 
individually designed plans (those not utilizing a master or prototype 
plan) and the exempt status of a related trust or custodial account, if 
any, in accordance with the procedures set forth in paragraph (o) of 
this section.
    (2) Determination letters as to qualified bond purchase plans. A 
determination as to the qualification of a bond purchase plan will, upon 
request, be made by the appropriate district director. Form 4578, 
Application for Approval of Bond Purchase Plan, must be used for this 
purpose. When properly completed, this form will constitute a bond 
purchase plan.
    (3) Instructions to sponsoring organizations and employers. (i) A 
sponsoring organization of the type referred to in subparagraph (1)(i) 
of this paragraph, that desires a written opinion as to the 
acceptability of the form of a master or prototype plan (or as to the 
exempt status of a related trust or custodial account) should submit its 
request to the National Office. Copies of all documents, including the 
plan and trust instruments and all amendments thereto, together with 
specimen insurance contracts (where applicable) must be submitted with 
the request. The request must be submitted to the Commissioner of 
Internal Revenue Service, Washington, DC 20224, Attn: T:MS: PT. Form 
3672, Application for Approval of Master or Prototype Plan for Self-
Employed Individuals, is to be used for this purpose.
    (ii) If, subsequent to obtaining approval of the form of a master or 
prototype plan, an amendment is to be made, the procedure will depend on 
whether the sponsor is authorized to act on behalf of the subscribers.
    (a) If the plan provides that each employer has delegated to the 
sponsor the power to amend the plan and that each employer shall be 
deemed to have consented thereto, the plan may be amended by the 
sponsor. If the plan contains no specific provision permitting the 
sponsor to amend such plan, but all employers consent in writing to 
permit such amendment, the sponsor may then amend the plan. However, 
where a sponsor is unable to secure the consent of each employer, the 
plan cannot be amended by the sponsor. In such cases, any change will 
have to be effected by the adoption of a new plan and the submission of 
a new Form 3672. The new plan will be complete and separate from the old 
plan and individual employers may, if they desire, substitute the new 
plan for the old plan.
    (b) In the first two instances mentioned above, where the plan has 
been properly amended, the sponsor must submit Form 3672, a copy of the 
amendment and, if required, copies of the signed consent of each 
participating employer.
    (c) Upon approval of the amendment by the Service, an opinion letter 
will be issued to the sponsor containing the serial number of the 
original plan followed by a suffix: ``A-1'' for the first amendment, 
``A-2'' for the second amendment, etc. Employers adopting the form of 
plan subsequent to the date of the amendment will use the revised serial 
number.
    (d) If a new plan is submitted, together with Form 3672 and copies 
of all documents evidencing the plan, an opinion letter bearing a new 
serial number will be issued to the sponsor and all employers who adopt 
the new plan shall use the new serial number. Employers who adopted the 
old plan will continue to use the original serial number.
    (4) Applicability. The general procedures of paragraph (a) through 
(m) and paragraph (o) of this section, relating to the issuance of 
rulings and determination letters, are applicable to requests relating 
to the qualification of plans covering self-employed individuals under 
sections 401 and 405(a) of the

[[Page 83]]

Code and the exempt status of related trusts or custodial accounts under 
section 501(a), to the extent that the matter is not covered by the 
specific procedures and instructions contained in this paragraph.
    (q) Corporate Master and prototype plans-- (1) Scope and 
definitions. (i) The general procedures set forth in this paragraph 
pertain to the issuance of rulings, determination letters, and opinion 
letters relating to master and prototype pension, annuity, and profit-
sharing plans (except those covering self-employed individuals) under 
section 401(a) of the Code, and the status for exemption of related 
trusts or custodial accounts under section 501(a). (A custodial account 
described in section 401(f) of the Code is treated as a qualified trust 
for purposes of the Code.) These procedures are subject to the general 
procedures set forth in paragraph (o) of this section, and relate only 
to master plans and prototype plans that do not include self-employed 
individuals and are sponsored by trade or professional associations, 
banks, insurance companies, or regulated investment companies. These 
plans are further identified as ``variable form'' and ``standardized 
form'' plans.
    (ii) A master plan is a form of plan in which the funding 
organization (trust, custodial account, or insurer) is specified in the 
sponsor's application, and a ``prototype plan'' is a form of plan in 
which the funding organization is specified in the adopting employer's 
application.
    (iii) A variable form plan is either a master or prototype plan that 
permits an employer to select various options relating to such basic 
provisions as employee coverage, contributions, benefits, and vesting. 
These options must be set forth in the body of the plan or in a separate 
document. Such plan, however, is not complete until all provisions 
necessary for qualification under section 401(a) of the Code are 
appropriately included.
    (iv) A standardized form plan is either a master or prototype plan 
that meets the requirements of subparagraph (2) of this paragraph.
    (2) Standardized form plan requirements. A standardized form plan 
must be complete in all respects (except for choices permissible under 
subdivisions (i) and (iv) of this subparagraph) and contain among other 
things provisions as to the following requirements:
    (i) Coverage. The percentage coverage requirements set forth in 
section 401(a)(3)(A) of the Code must be satisfied. Provisions may be 
made, however, for an adopting employer to designate such eligibility 
requirements as are permitted under that section.
    (ii) Nonforfeitable rights. Each employee's rights to or derived 
from the contributions under the plan must be nonforfeitable at the time 
the contributions are paid to or under the plan, except to the extent 
that the limitations set forth in Sec. 1.401-4(c) of the Income Tax 
Regulations, regarding early termination of a plan, may be applicable.
    (iii) Bank trustee. In the case of a trusteed plan, the trustee must 
be a bank.
    (iv) Definite contribution formula. In the case of a profit-sharing 
plan, there must be a definite formula for determining the employer 
contributions to be made. Provision may be made, however, for an 
adopting employer to specify his rate of contribution.
    (3) Rulings, determination letters, and opinion letters. (i) A 
favorable determination letter as to the qualification of a pension or 
profit-sharing plan and the exempt status of any related trust or 
custodial account, is not required as a condition for obtaining the tax 
benefits pertaining thereto. However, paragraph (c)(5) of this section 
authorizes district directors to issue determination letters as to the 
qualification of plans and the exempt status of related trusts or 
custodial accounts.
    (ii) In addition, the National Office upon request from a sponsoring 
organization will furnish a written opinion as to the acceptability of 
the form of a master or prototype plan and any related trust or 
custodial account, under sections 401(a) and 501(a) of the Code. Each 
opinion letter will bear an identifying plan serial number. However, 
opinion letters will not be issued under this paragraph as to (a) plans 
of a parent company and its subsidiaries, (b) pooled fund arrangements 
contemplated by Revenue Ruling 56-267, C.B. 1956-1, 206, (c) industry-
wide or

[[Page 84]]

area-wide union-negotiated plans, (d) plans that include self-employed 
individuals, (e) stock bonus plans, and (f) bond purchase plans.
    (iii) A ruling as to the exempt status of a trust or custodial 
account under section 501(a) of the Code will be issued to the trustee 
or custodian by the National Office where such trust or custodial 
account forms part of a plan described in subparagraph (1) of this 
paragraph and the trustee or custodian is specified on Form 4461, 
Sponsor Application--Approval of Master or Prototype Plan. Where not so 
specified, a determination letter as to the exempt status of a trust or 
custodial account will be issued by the district director for the 
district in which is located the principal place of business of an 
employer who adopts such trust or custodial account after he furnishes 
the name of the trustee or custodian.
    (iv) Since a determination as to the qualification of a particular 
employer's plan can be made only with regard to facts peculiar to such 
employer, a letter expressing the opinion of the Service as to the 
acceptability of the form of a master or prototype plan will not 
constitute a ruling or determination as to the qualification of a plan 
as adopted by any individual employer nor as to the exempt status of a 
related trust or custodial account.
    (v) A determination as to the qualification of a plan as it relates 
to a particular employer will be made by the district director for the 
district in which each employer's principal place of buisness is 
located, if the employer has adopted a master or prototype plan that has 
been previously approved as to form. An employer who desires such a 
determination must file Form 4462, Employer Application--Determination 
as to Qualification of Pension, Annuity, or Profit-Sharing Plan and 
Trust, and furnish a copy of the adoption agreement or other evidence of 
adoption of the plan and such additional information as the district 
director may require.
    (vi) Where master or prototype plans involve integration with Social 
Security benefits, it is impossible to determine in advance whether in 
an individual case a particular restrictive definition of the 
compensation (such as basic compensation) on which contributions or 
benefits are based would result in discrimination in contributions or 
benefits in favor of employees who are officers, shareholders, persons 
whose principal duties consist in supervising the work of other 
employees, or highly compensated employees. See Revenue Ruling 69-503 
C.B. 1969-2, 94. Accordingly, opinion letters relating to master or 
prototype plans that involve integration with Social Security benefits 
will not be issued except for those plans where annual compensation, for 
the purposes of Sec. Sec. 3.01, 5.02, 6.02, 6.03, 13.01, 13.02, and 
14.02 of Revenue Ruling 69-4 C.B. 1969-1, 118, is defined to be all of 
each employee's compensation that would be subject to tax under section 
3101(a) of the Code without the dollar limitation of section 3121(a)(1) 
of the Code.
    (4) Request by sponsoring organizations and employers. (i) The 
National Office will consider the request of a sponsoring organization 
desiring a written opinion as to the acceptability of the form of a 
master or prototype plan and any related trust or custodial account. 
Such request is to be made on Form 4461 and filed with the Commissioner 
of Internal Revenue, Washington, DC 20224, attention T:MS:PT. Copies of 
all documents, including the plan and trust or custodial agreement, 
together with specimen insurance contracts, if applicable, are to be 
submitted with the request. In making its determination, the National 
Office may require additional information as appropriate.
    (ii) Each district director, in whose jurisdiction there are 
employers who adopt the form of plan, must be furnished a copy of the 
previously approved form of plan and related documents by the sponsoring 
organization. The sponsoring organization must also furnish such 
district director a copy of all amendments subsequently approved as to 
form by the National Office.
    (iii) The sponsoring organization must furnish copies of opinion 
letters as to the acceptability of the form of plan, including 
amendments (see subparagraph (5) of this paragraph), to all adopting 
employers.

[[Page 85]]

    (5) Amendments. (i) Subsequent to obtaining approval of the form of 
a master or prototype plan, a sponsoring organization may wish to amend 
the plan. Whether a sponsoring organization may effect an amendment 
depends on the plan's administrative provisions.
    (ii) If the plan provides that each subscribing employer has 
delegated authority to the sponsor to amend the plan and that each such 
employer shall be deemed to have consented thereto, the plan may be 
amended by the sponsor acting on behalf of the subscribers. If the plan 
does not contain such provision but all subscribing employers consent in 
a collateral document to permit amendment, the sponsor, acting on their 
behalf, may amend the plan. However, where a sponsor is unable to secure 
the consent of each such employer, the plan cannot be amended. In such 
cases any change can only be effected by the establishment of a new plan 
and the submission of a new Form 4461 by the sponsor. The new plan must 
be complete and separate from the old plan, and individual employers 
may, if they desire, substitute the new plan for the old plan.
    (iii) Where the plan has been amended pursuant to subdivision (ii) 
of this subparagraph, the sponsor is to submit an application, Form 
4461, a copy of the amendment, a description of the changes, and a 
statement indicating the provisions in the original plan authorizing 
amendments, or a statement that each participating employer's consent 
has been obtained.
    (iv) Upon approval of the amendment by the National Office, an 
opinion letter will be issued to the sponsor containing the serial 
number of the original plan, followed by a suffix: ``A-1'' for the first 
amendment, ``A-2'' for the second amendment, etc. Employers adopting the 
form of plan subsequent to the date of the amendment must use the 
revised serial number.
    (v) If a new plan is submitted, together with Form 4461 and copies 
of all documents evidencing the plan, an opinion letter bearing a new 
serial number will be issued to the sponsor, and all employers who adopt 
the new plan are to use the new serial number. Employers who adopted the 
old plan continue to use the original serial number. However, any 
employer who wishes to change to the new plan may do so by filing with 
his district director a new Form 4462, indicating the change.
    (vi) An employer who amends his adoption agreement may request a 
determination letter as to the effect of such amendment by filing Form 
4462 with his district director, together with a copy of the amendment 
and a summary of the changes. However, in the event an employer desires 
to amend his adoption agreement under a master or prototype plan, and 
such amendment is not contemplated or permitted under the plan, then 
such amendment will in effect substitute an individually designed plan 
for the master or prototype plan and the amendment procedure described 
in paragraph (o) of this section will be applicable.
    (6) Effect on other plans. Determination letters previously issued 
by district directors specified in paragraph (o)(2)(viii) of this 
section are not affected by these procedures even though the plans 
covered by the determination letters were designed by organizations 
described in subparagraph (1)(i) of this paragraph. However, such 
organizations may avail themselves of these procedures with respect to 
any subsequent action regarding such plans if they otherwise come within 
the scope of this paragraph.
    (r) Rulings and determination letters with respect to foundation 
status classification--(1) Rulings and determination letters on private 
and operating foundation status. The procedures relating to the issuance 
of rulings and determination letters on private foundation status under 
section 509(a), and operating foundation status under section 
4942(j)(3), of organizations exempt from Federal Income Tax under 
section 501(c)(3) of the Code will be published from time to time in the 
Internal Revenue Bulletin (see for example, Rev. Proc. 76-34. 1976-2 
C.B. 657, as modified by Rev. Proc. 80-25, 1980-1 C.B. 667. These 
procedures apply in connection with notices filed by the organizations 
on Form 4653, Notification Concerning Foundation Status, or with 
applications for recognition of exempt status under section 501(c)(3) of 
the Code.

[[Page 86]]

Such notices and statements are filed by organizations in accordance 
with section 508(a) of the Code in order for an organization to avoid 
the presumption of private foundation status or to claim status as an 
operating foundation. In addition, these procedures also relate to 
National Office review of determination letters on foundation status 
under sections 509(a) and 4942(j)(3) of the Code and protest of adverse 
determination letters regarding foundation status.
    (2) Nonexempt charitable trusts claiming nonprivate foundation 
status under section 509(a)(3) of the Code. A trust described in section 
4947(a)(1) of the Code is one that is not exempt from tax under section 
501(a) of the Code, has all of its unexpired interests devoted to one or 
more of the purposes described in section 170(c)(2)(B) of the Code, and 
is a trust for which a charitable deduction was allowed. These trusts 
are subject to the private foundation provisions (Part II of Subchapter 
F of Chapter 1 and chapter 42 of the Code) except section 508 (a), (b), 
and (c) of the Code. The procedures to be used by nonexempt charitable 
trusts to obtain determinations of their foundation status under section 
509(a)(3) of the Code will be published from time to time in the 
Internal Revenue Bulletin (see, for example, Rev. Proc. 72-50, 1972-2 
C.B. 830).
    (s) Advance rulings or determination letters--(1) General. It is the 
practice of the Service to answer written inquiries, when appropriate 
and in the interest of sound tax administration, as to the tax effects 
of acts or transactions of individuals and organizations and as to the 
status of certain organizations for tax purposes prior to the filing of 
returns or reports as required by the Revenue laws.
    (2) Exceptions. There are, however, certain areas where, because of 
the inherently factual nature of the problems involved or for other 
reasons, the Service will not issue advance rulings or determination 
letters. Ordinarily, an advance ruling or determination letter is not 
issued on any matter where the determination requested is primarily one 
of fact (e.g., market value of property), or on the tax effect of any 
transaction to be consummated at some indefinite future time or of any 
transaction or matter having as a major purpose the reduction of Federal 
taxes. A specific area or a list of these areas is published from time 
to time in the Internal Revenue Bulletin (see, for example, Rev. Proc. 
80-22, 1980-1, C.B. 654). Such list is not all inclusive. Whenever a 
particular item is added to or deleted from the list, however, 
appropriate notice thereof will be published in the Internal Revenue 
Bulletin. The authority and general procedures of the National Office of 
the Internal Revenue Service and of the offices of the district 
directors of internal revenue with respect to the issuance of advance 
rulings and determination letters are outlined in paragraphs (b) and (c) 
of this section.
    (t) Alternative method of depletion--(1) In general. Section 1.613-
4(d)(1)(i) of the regulations, adopted by T.D. 7170, March 10, 1972, 
provides that in those cases where it is impossible to determine a 
representative market of field price under the provisions of Sec. 
1.613-4(c), gross income from mining shall be computed by use of the 
proportionate profits method set forth in Sec. 1.613-4(d)(4).
    (2) Exception. An exception is provided in Sec. 1.613-4(d)(1)(ii) 
where, upon application, the Office of the Assistant Commissioner 
(Technical) approves the use of an alternative method that is more 
appropriate than the proportionate profits method or the alternative 
method being used by the taxpayer.
    (3) Procedure. The procedure for making application for approval to 
compute gross income from mining by use of an alternative method, other 
than the proportionate profits method; the conditions for approval and 
use of an alternative method; changes in an approved method; and other 
pertinent information with respect thereto, will be published from time 
to time in the Cumulative Bulletin (see, for example, Rev. Proc. 74-43, 
1974-2 C.B. 496).
    (u) Conditions for issuing rulings involving bonuses and advanced 
royalties of lessors under section 631(c) of IRC of 1954--(1) In 
general. Rev. Proc. 77-11, 1977-1 C.B. 568, provides that the tax 
liability of a lessor who received a bonus or an advance royalty is 
required to be recomputed for the taxable year or

[[Page 87]]

years in which such payment or payments were received if the right to 
mine coal or iron ore under the lease expires, terminates, or is 
abandoned before (with respect to bonuses) any coal or iron ore has been 
mined; or (with respect to advance royalties) the coal or iron ore that 
has been paid for in advance is mined. In such recomputation, the lessor 
is required to treat the bonus payment or payments or any portion of the 
advance royalty payment or payments attributable to unmined coal or iron 
ore, as ordinary income and not as received from the sale of coal or 
iron ore under section 631(c) of the Code.
    (2) Condition for issuing rulings. Prior to issuing a ruling to 
lessors who request a ruling that they may treat bonuses or advance 
royalties received under a lease for coal or iron ore as received from a 
sale of coal or iron under section 631(c) of the Code, the Internal 
Revenue Service will require that the lessor enter a closing agreement 
in which the lessor agrees that--
    (i) If the lease under which the lessor received a bonus or an 
advance royalty expires, terminates, or is abandoned before (with 
respect to a bonus) any coal or iron ore has been mined or (with respect 
to an advance royalty) the coal or iron ore that has been paid for in 
advance is mined, the tax liability of the lessor will be recomputed for 
the taxable year or years of receipt of (A) the bonus by treating the 
bonus payment or payments as ordinary income or (B) the advance royalty 
by treating any portion or the advance royalty payment or payments 
attributable to unmined coal or iron ore as ordinary income;
    (ii) If the recomputation described in paragraph (u)(2)(i) of this 
section is required, the lessor will pay the additional amount, if any, 
of all federal income tax finally determined as due and payable by the 
lessor for the taxable year or years of the receipt of the bonus or 
advance royalty; and
    (iii) If any of the described events has occurred, the lessor will 
notify the appropriate district director of such event in writing within 
90 days of the close of the taxable year in which the lease expires, 
terminates, or is abandoned.

[32 FR 15990, Nov. 22, 1967]

    Editorial Note: For Federal Register citations affecting Sec. 
601.201, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 601.202  Closing agreements.

    (a) General. (1) Under section 7121 of the Code and the regulations 
and delegations thereunder, the Commissioner, or any officer or employee 
of the Internal Revenue Service authorized in writing by the 
Commissioner, may enter into and approve a written agreement with a 
person relating to the liability of such person (or of the person or 
estate for whom he acts) in respect of any internal revenue tax for any 
taxable period. Such agreement, except upon a showing of fraud or 
malfeasance, or misrepresentation of a material fact, shall be final and 
conclusive.
    (2) Closing agreements under section 7121 of the Code may relate to 
any taxable period ending prior or subsequent to the date of the 
agreement. With respect to taxable periods ended prior to the date of 
the agreement, the matter agreed upon may relate to the total tax 
liability of the taxpayer or it may relate to one or more separate items 
affecting the tax liability of the taxpayer. A closing agreement may 
also be entered into in order to provide a ``determination'', as defined 
in section 1313 of the Code, and for the purpose of allowing a 
deficiency dividend deduction under section 547 of the Code. But see 
also sections 547(c)(3) and 1313(a)(4) of the Code and the regulations 
thereunder as to other types of ``determination'' agreements. With 
respect to taxable periods ending subsequent to the date of the 
agreement, the matter agreed upon may related to one or more separate 
items affecting the tax liability of the taxpayer. A closing agreement 
with respect to any taxable period ending subsequent to the date of the 
agreement is subject to any change in or modification of the law enacted 
subsequent to the date of the agreement and applicable to such taxable 
period, and each such closing agreement shall so recite. Closing 
agreements may be entered into even though

[[Page 88]]

under the agreement the taxpayer is not liable for any tax for the 
period to which the agreement relates. There may be a series of 
agreements relating to the tax liability for a single period. A closing 
agreement may be entered into in any case in which there appears to be 
an advantage in having the case permanently and conclusively closed, or 
where good and sufficient reasons are shown by the taxpayer for desiring 
a closing agreement and it is determined by the Commissioner or his 
representatives that the Government will sustain no disadvantage through 
consummation of such an agreement.
    (b) Use of prescribed forms. In cases in which it is proposed to 
close conclusively the total tax liability for a taxable period ending 
prior to the date of the agreement, Form 866, Agreement as to Final 
Determination of Tax Liability generally will be used. In cases in which 
agreement has been reached as to the disposition of one or more issues 
and a closing agreement is considered necessary to insure consistent 
treatment of such issues in any other taxable period Form 906, Closing 
Agreement as to Final Determination Covering Specific Matters, generally 
will be used. A request for a closing agreement which determines tax 
liability may be submitted and entered into at any time before the 
determination of such liability becomes a matter within the province of 
a court of competent jurisdiction and may thereafter be entered into in 
appropriate circumstances when authorized by the court (e.g., in certain 
bankruptcy situations). The request should be submitted to the district 
director of internal revenue with whom the return for the period 
involved was filed. However, if the matter to which the request relates 
is pending before an office of the Appellate Division, the request 
should be submitted to that office. A request for a closing agreement 
which relates only to a subsequent period should be submitted to the 
Commissioner of Internal Revenue, Washington, DC 20224.
    (c) Approval. (1) Closing agreements relating to alcohol, tobacco, 
and firearms, taxes in respect of any prospective transactions or 
completed transactions affecting returns to be filed may be entered into 
and approved by the Director, Bureau of Alcohol, Tobacco, and Firearms.
    (2) Closing agreements relating to taxes other than those taxes 
covered in subparagraph (1) of this paragraph in respect of any 
prospective transactions or completed transactions affecting returns to 
be filed may be entered into and approved by the Assistant Commissioner 
(Technical).
    (3) Closing agreements for a taxable period or periods ended prior 
to the date of agreement and related specific items affecting other 
taxable periods (including those covering competent authority 
determinations in the administration of the operating provisions of the 
tax conventions of the United States) may be entered into and approved 
by the Assistant Commissioner (Compliance).
    (4) Regional commissioners, assistant regional commissioners 
(appellate), assistant regional commissioners (examination), district 
directors (including the Director, Foreign Operations District), chiefs 
and assistant chiefs of appellate branch offices may enter into and 
approve closing agreements on cases under their jurisdiction (but 
excluding cases docketed before the U.S. Tax Court) for a taxable period 
or periods which end prior to the date of agreement and related specific 
items affecting other taxable periods.
    (5) Regional commissioners, assistant regional commissioners 
(examination) and (appellate), chiefs and assistant chiefs of appellate 
branch offices are authorized to enter into and approve closing 
agreements in cases under their jurisdiction docketed in the U.S. Tax 
Court but only in respect to related specific items affecting other 
taxable periods.
    (6) Closing agreements providing for the mitigation of economic 
double taxation under section 3 of the Revenue Procedure 64-54, C.B. 
1964-2, 1008, or under Revenue Procedure 69-13, C.B. 1969-1, 402 or for 
such mitigation and relief under Revenue Procedure 65-17, C.B. 1965-1, 
833, may be entered into and approved by the Director, Foreign 
Operations District.
    (7) Closing agreements in cases under the jurisdiction of a district 
director providing that the taxability of earnings from a deposit or 
account of the

[[Page 89]]

type described in Revenue Procedure 64-24, C.B. 1964-1 (Part 1), 693, 
opened prior to November 15, 1962, will be determined on the basis that 
earnings on such deposits or accounts are not includable in gross income 
until maturity or termination, whichever occurs earlier, and that the 
full amount of earnings on the deposit or account will constitute gross 
income in the year the plan matures, is assigned, or is terminated, 
whichever occurs first, may be entered into and approved by such 
district director.
    (d) Applicability of ruling requirements. The requirement relating 
to requests for rulings (see Sec. 601.291) shall be applicable with 
respect to requests for closing agreements pertaining to prospective 
transactions or completed transactions affecting returns to be filed 
(see paragraph (c) (2) of this section).

[32 FR 15990, Nov. 22, 1967, as amended at 32 FR 20647, Dec. 21, 1967; 
33 FR 17237, Nov. 21, 1968; 34 FR 14601, Sept. 19, 1969; 35 FR 15920, 
Oct. 9, 1970; 38 FR 4967, Feb. 23, 1973; 42 FR 46520, Sept. 16, 1977; 43 
FR 53030, Nov. 15, 1978; 49 FR 36499, Sept. 18, 1984; T.D. 8685, 61 FR 
58008, Nov. 12, 1996]



Sec. 601.203  Offers in compromise.

    (a) General. (1) The Commissioner may compromise, in accordance with 
the provisions of section 7122 of the Code, any civil or criminal case 
arising under the internal revenue laws prior to reference to the 
Department of Justice for prosecution or defense. Certain functions of 
the Commissioner with respect to compromise of civil cases involving 
liability of $100,000 or more, based solely on doubt as to liability, 
have been delegated to regional commissioners and, for cases arising in 
the District Office, Foreign Operations District, to the Assistant 
Commissioner (Compliance). The authority concerning liability of 
$100,000 or more based on doubt as to collectibility or doubt as to both 
collectibility and liability has been delegated to the Director, 
Collection Division and regional commissioners. The authority with 
respect to compromise of civil cases involving liability under $100,000, 
and of certain specific penalties has been delegated to district 
directors, assistant district directors (including the District Director 
and Assistant District Director, Foreign Operations District), regional 
directors of Appeals, and chiefs and associate chiefs, Appeals offices. 
The authority concerning offers in compromise of penalties based solely 
on doubt as to liability, if the liability is less than $100,000, has 
also been delegated to service center directors and assistant service 
center directors. In civil cases involving liability of $500 or over and 
in criminal cases the functions of the General Counsel are performed by 
the Chief Counsel for the Internal Revenue Service. These functions are 
performed in the District Council, Regional Counsel, or National Office 
as appropriate. (See also paragraph (c) of this section.) In cases 
arising under Chapters 51, 52, and 53 of the Code, offers are acted upon 
by the Bureau of Alcohol, Tobacco and Firearms.
    (2) An offer in compromise of taxes, interest, delinquency 
penalties, or specific penalties may be based on either inability to pay 
or doubt as to liability. Offers in compromise arise usually when 
payments of assessed liabilities are demanded, penalties for delinquency 
in filing returns are asserted, or specific civil or criminal penalties 
are incurred by taxpayers. A criminal liability will not be compromised 
unless it involves only the regulatory provisions of the Internal 
Revenue Code and related statutes. However, if the violations involving 
the regulatory provisions are deliberate and with intent to defraud, the 
criminal liabilities will not be compromised.
    (b) Use of prescribed form. Offers in compromise are required to be 
submitted on Form 656, properly executed, and accompanied by a financial 
statement on Form 433 (if based on inability to pay). Form 656 is used 
in all cases regardless of whether the amount of the offer is tendered 
in full at the time the offer is filed or the amount of the offer is to 
be paid by deferred payment or payments. Copies of Form 656 and Form 433 
may be obtained from district directors. An offer in compromise, should 
be filed with the district director or service center director.
    (c) Consideration of offer. (1) An offer in compromise is first 
considered by

[[Page 90]]

the director having jurisdiction. Except in certain penalty cases, an 
investigation of the basis of the offer is required. The examining 
officer makes a written recommendation for acceptance or rejection of 
the offer. If the director has jurisdiction over the processing of the 
offer he or she will:
    (i) Reject the offer, or
    (ii) Accept the offer if it involves a civil liability under $500, 
or
    (iii) Accept the offer if it involves a civil liability of $500 or 
more, but less than $100,000, or involves a specific penalty and the 
District Counsel concurs in the acceptance of the offer, or
    (iv) Recommend to the Regional Commissioner the acceptance of the 
offer if it involves a civil liability of $100,000 or over.
    (2)(i) If the district director does not have jurisdiction over the 
entire processing of the offer, the offer is transmitted to the 
appropriate District Counsel if the case is one in which:
    (a) Recommendations for prosecution are pending in the Office of the 
Chief Counsel, the Department of Justice, or in an office of a United 
States attorney, including cases in which criminal proceedings have been 
instituted but not disposed of and related cases in which offers in 
compromise have been submitted or are pending;
    (b) The taxpayer is in receivership or is involved in a proceeding 
under any provision of the Bankruptcy Act;
    (c) The taxpayer is deceased joint liability cases, where either 
taxpayer is deceased.
    (d) A proposal is made to discharge property from the effect of a 
tax lien or to subordinate the lien or liens;
    (e) An insolvent bank is involved;
    (f) An assignment for the benefit of creditors is involved;
    (g) A liquidation proceeding is involved; or
    (h) Court proceedings are pending, except Tax Court cases.
    (ii) The District Counsel considers and processes offers submitted 
in cases described in paragraphs (c)(2)(i) (a) through (h) of this 
section and forwards those offers to the district director, service 
center director, Regional Counsel, or Office of Chief Counsel in 
Washington, as appropriate.
    (iii) In those cases described in (a) of subdivision (i) of this 
subparagraph no investigation will be made unless specifically requested 
by the office having jurisdiction of the criminal case.
    (iv) In those cases described in (b) through (h) of subdivision (i) 
of this subparagraph the district director retains the duplicate copy of 
the offer and the financial statement for investigation. After 
investigation, the district director transmits to the appropriate 
district counsel for consideration and processing his or her 
recommendation for acceptance or rejection of the offer together with 
the examining officer's report of the investigation.
    (3) The district directors, assistant district directors (including 
the District Director and Assistant District Director, Foreign 
Operations District), service center directors, assistant service center 
directors, Regional Directors of Appeals, and Chiefs and Associate 
Chiefs, Appeals Offices are authorized to reject any offer in compromise 
referred for their consideration. Unacceptable offers considered by the 
District Counsel, Regional Counsel, or Office of Chief Counsel in 
Washington, or the Appeals office are also rejected by the district 
directors (including the Director, Foreign Operations District), as 
applicable. If an offer is not acceptable, the taxpayer is promptly 
notified of the rejection of that offer. If an offer is rejected, the 
sum submitted with the offer is returned to the proponent, unless the 
taxpayer authorizes application of the sum offered to the tax liability. 
Each Regional Commissioner will perform a post review of offers 
accepted, rejected, or withdrawn in the district director's office if 
the offer covers liabilities of $5,000 or more. The post review will 
cover a sampling of cases processed by the Collection function and all 
cases processed by the Examination function.
    (4) If an offer involving unpaid liability of $100,000 or more is 
considered acceptable by the office having jurisdiction over the offer, 
a recommendation for acceptance is forwarded to the National Office or 
Regional Office, as appropriate for review. If the recommendation for 
acceptance is approved, the offer is forwarded to the

[[Page 91]]

Regional Counsel or Office of Chief Counsel in Washington, as 
appropriate, for approval. After approval by the Regional Counsel or 
Office of Chief Counsel in Washington, as appropriate, it is forwarded 
to the Assistant Commissioner (Compliance), Director, Collection 
Division, or Regional Commissioner, as appropriate for acceptance. The 
taxpayer is notified of the acceptance of the offer in accordance with 
its terms. Acceptance of an offer in compromise of civil liabilities 
does not remit criminal liabilities, nor does acceptance of an offer in 
compromise of criminal liabilities remit civil liabilities.
    (d) Conferences. Before filing a formal offer in compromise, a 
taxpayer may request a meeting in the office which would have 
jurisdiction over the offer to explore the possibilities of compromising 
unpaid tax liability. After all investigations have been made, the 
taxpayer may also request a meeting in the office having jurisdiction of 
the offer to determine the amount which may be accepted as a compromise. 
If agreement is not reached at such meeting and the district director 
has processing jurisdiction over the offer, the taxpayer will be 
informed that the taxpayer may request consideration of the case by an 
Appeals Office. The request may be in writing or oral. If the tax, 
penalty, and assessed (but not accrued) interest sought to be 
compromised exceeds $2,500 for any return, taxable year or taxable 
period, a written protest is required. Taxpayers and their 
representatives are required to comply with the applicable conference 
and practice requirements. See Subpart E of this part.

[32 FR 15990, Nov. 22, 1967, as amended at 33 FR 17238, Nov. 21, 1968; 
35 FR 7116, May 6, 1970; 35 FR 15920, Oct. 9, 1970; 43 FR 44510, Sept. 
28, 1978; 45 FR 7255, Feb. 1, 1980; 46 FR 26054, May 11, 1981; 49 FR 
36499, Sept. 18, 1984; T.D. 8685, 61 FR 58008, Nov. 12, 1996]



Sec. 601.204  Changes in accounting periods and in methods of accounting.

    (a) Accounting periods. A taxpayer who changes his accounting period 
shall, before using the new period for income tax purposes, comply with 
the provisions of the income tax regulations relating to changes in 
accounting periods. In cases where the regulations require the taxpayer 
to secure the consent of the Commissioner to the change, the application 
for permission to change the accounting period shall be made on Form 
1128 and shall be submitted to the Commissioner of Internal Revenue, 
Washington, DC 20224, within the period of time prescribed in such 
regulations. See section 442 of the Code and regulations thereunder. If 
the change is approved by the Commissioner, the taxpayer shall 
thereafter make his returns and compute his net income upon the basis of 
the new accounting period. A request for permission to change the 
accounting period will be considered by the Corporation Tax Division. 
However, in certain instances, Form 1128 may be filed with the Director 
of the Internal Revenue Service Center in which the taxpayer files its 
return. See, for example, Rev. Proc. 66-13, 1966-1 C.B. 626; Rev. Proc. 
66-50, 1966-2 C.B. 1260, and Rev. Proc. 68-41, 1968-2 C.B. 943. With 
respect to partnership adoptions, see Sec. 1.706-1(b) of the Income Tax 
Regulations.
    (b) Methods of accounting. A taxpayer who changes the method of 
accounting employed in keeping his books shall, before computing his 
income upon such method for purposes of income taxation, comply with the 
provisions of the income tax regulations relating to changes in 
accounting methods. The regulations require that, in the ordinary case, 
the taxpayer secure the consent of the Commissioner to the change. See 
section 446 of the Code and the regulations thereunder. Application for 
permission to change the method of accounting employed shall be made on 
Form 3115 and shall be submitted to the Commissioner of Internal 
Revenue, Washington, DC, 20224, during the taxable year in which it is 
desired to make the change. Permission to change the method of 
accounting will not be granted unless the taxpayer and the Commissioner 
agree to the terms and conditions under which the change will be 
effected. The request will be considered by the Corporation Tax 
Division. However, in certain instances, Form 3115 may be filed with the 
Director of the Internal Revenue Service Center. See, for example, Rev. 
Proc. 74-11, 1974-1 C.B. 420.

[[Page 92]]

    (c) Verification of changes. Written permission to a taxpayer by the 
National Office consenting to a change in his annual accounting period 
or to a change in his accounting method is a ``ruling''. Therefore, in 
the examination of returns involving changes of annual accounting 
periods and methods of accounting, district directors must determine 
whether the representations upon which the permission was granted 
reflect an accurate statement of the material facts, and whether the 
agreed terms, conditions, and adjustments have been substantially 
carried out as proposed. An application, Form 3115, filed with the 
Director of the Internal Revenue Service Center is also subject to 
similar verification.
    (d) Instructions to taxpayers. The person seeking to secure the 
consent of the Commissioner with respect to a change of accounting 
periods or methods pursuant to section 442 or 446(e) of the Code need 
not submit the statement of proposed deletions described in Sec. 
601.201(e)(5) at the time the request is made. If, however, the person 
seeking the consent of the Commissioner receives from the National 
Office a notice that proposed deletions should be submitted because the 
resulting ruling will be open to public inspection under section 6110, 
the statement of proposed deletions must be submitted within 20 days 
after such notice is mailed.

[41 FR 20882, May 21, 1976, as amended at 41 FR 48742, Nov. 5, 1976; 42 
FR 34280, July 5, 1977; T.D. 8742, 62 FR 68173, Dec. 31, 1997]



Sec. 601.205  Tort claims.

    Claims for property loss or damage, personal injury, or death caused 
by the negligent or wrongful act or omission of any employee of the 
Service, acting within the scope of his office or employment, filed 
under the Federal Tort Claims Act, as amended, must be prepared and 
filed in accordance with Treasury Department regulations entitled 
``Central Office Procedures'' and ``Claims Regulations'' (31 CFR Parts 1 
and 3). Such regulations contain the procedural and substantive 
requirements relative to such claims, and set forth the manner in which 
they are handled. The claims should be filed with the Commissioner of 
Internal Revenue, Washington, DC 20224, and must be filed within 2 years 
after the accident or incident occurred.



Sec. 601.206  Certification required to obtain reduced foreign tax 
rates under income tax treaties.

    (a) Basis of certification. Most of the income tax treaties between 
the United States and foreign countries provide for either a reduction 
in the statutory rate of tax or an exemption from tax on certain types 
of income received from sources within the foreign treaty country by 
citizens, domestic corporations, and residents of the United States. 
Some of the treaty countries reduce the withholding tax on such types of 
income or exempt the income from withholding tax after the claimant 
furnishes evidence that he is entitled to the benefits of the treaty. 
Other countries initially withhold the tax at statutory rates and refund 
the excess tax withheld after satisfactory evidence of U.S. residence 
has been accepted. As part of the proof that the applicant is a resident 
of the United States and thus entitled to the benefits of the treaty, he 
must usually furnish a certification from the U.S. Government that he 
has filed a U.S. income tax return as a citizen, domestic corporation, 
or resident of the United States.
    (b) Procedure for obtaining the certification. Most of the treaty 
countries which require certification have printed special forms. The 
forms contain a series of questions to be answered by the taxpayer 
claiming the benefits of the treaty, followed by a statement which the 
foreign governments use for the U.S. taxing authority's certification. 
This certification may be obtained from the office of the district 
director of the district in which the claimant filed his latest income 
tax return. Some certification forms are acceptable for Service 
execution; however, others cannot be executed by the Service without 
revision. In these instances the office of the district director will 
prepare its own document of certification in accordance with internal 
instructions. This procedure has been accepted by most treaty countries 
as a satisfactory substitute.
    (c) Obtaining the official certification forms. The forms may be 
obtained from the foreign payor, the tax authority of

[[Page 93]]

the treaty country involved, or the District Office, Foreign Operations 
District.

[34 FR 14601, Sept. 19, 1969, as amended at 49 FR 36500, Sept. 18, 1984]

Subpart C [Reserved]



        Subpart D_Provisions Special to Certain Employment Taxes



Sec. 601.401  Employment taxes.

    (a) General--(1) Description of taxes. Federal employment taxes are 
imposed by Subtitle C of the Internal Revenue Code. Chapter 21 (Federal 
Insurance Contributions Act) imposes a tax on employers of one or more 
individuals and also a tax on employees, with respect to ``wages'' paid 
and received. Chapter 22 (Railroad Retirement Tax Act) imposes (i) an 
employer tax and employee tax with respect to ``compensation'' paid and 
received, (ii) an employee representative tax with respect to 
``compensation'' received, and (iii) a supplemental tax on employers, 
measured by man-hours for which ``compensation'' is paid. Chapter 23 
(Federal Unemployment Tax Act) imposes a tax on employers of one or more 
individuals with respect to ``wages'' paid. Chapter 24 (collection of 
income tax at source on wages) requires every employer making payment of 
``wages'' to deduct and withhold upon such wages the tax computed or 
determined as provided therein. The tax so deducted and withheld is 
allowed as a credit against the income tax liability of the employee 
receiving such wages.
    (2) Applicable regulations. The descriptive terms used in this 
section to designate the various classes of taxes are intended only to 
indicate their general character. Specific information relative to the 
scope of each tax, the forms used, and the functioning of the Service 
with respect thereto is contained in the applicable regulations. Copies 
of all necessary forms, and instructions as to their preparation and 
filing, may be obtained from the district director of internal revenue.
    (3) Collection methods. Employment taxes are collected by means of 
returns and by withholding by employers. Employee tax must be deducted 
and withheld by employers from ``wages'' or ``compensation'' (including 
tips reported in writing to employer) paid to employees, and the 
employer is liable for the employee tax whether or not it is so 
deducted. For special rules relating to tips see Sec. Sec. 31.3102-3 
and 31.3402 (k)-1. Rev. Proc. 81-48, 1981-2 C.B. 623, provides 
guidelines for determining wages when the employer pays the employee tax 
imposed by Chapter 21 without deducting the amount from the employee's 
pay. Employee representatives (as defined in the Railroad Retirement Tax 
Act) are required to file returns. Employment tax returns must be filed 
with the district director or, if so provided in instructions applicable 
to a return, with the service center designated in the instructions. The 
return of the Federal unemployment tax is required to be filed annually 
on Form 940 with respect to wages paid during the calendar year. All 
other returns of Federal employment taxes (with the exception of returns 
filed for agricultural employees) are required to be filed for each 
calendar quarter except that if pursuant to regulations the district 
director so notifies the employer, returns on Form 941 are required to 
be filed on a monthly basis. In the case of certain employers required 
to report withheld income tax but not required to report employer and 
employee taxes imposed by Chapter 21 (for example, state and local 
government employers), Form 941E is prescribed for reporting on a 
quarterly basis. The employer and employee taxes imposed by Chapter 21 
(other than the employer and employee taxes on wages paid for 
agricultural labor) and the tax required to be deducted and withheld 
upon wages by Chapter 24 are combined in a single return on Form 941. In 
the case of wages paid by employers for domestic service performed in a 
private home not on a farm operated for profit, the return of both the 
employee tax and the employer tax imposed by Chapter 21 is on Form 942. 
However, if the employer is required to file a return for the same 
quarter on Form 941, the employer may elect to include the taxes with 
respect to such domestic service on Form 941. The employer and employee 
taxes imposed by Chapter 21 with respect to

[[Page 94]]

wages paid for agricultural labor are required to be reported annually 
on Form 943. Under the Railroad Retirement Tax Act, the return required 
of the employer is on Form CT-1, and the return required of each 
employee representative is on Form CT-2. An employee is not required to 
file a return of employee tax, except that the employee must include in 
his or her income tax return (as provided in the applicable 
instructions) any amount of employee tax (i) due with respect to tips 
that the employee failed to report to the employer or (ii) shown on the 
employee's Form W-2 as ``Uncollected Employee Tax on Tips''.
    (4) Receipts for employees. Employers are required to furnish each 
employee a receipt or statement, in duplicate, showing the total wages 
subject to income tax withholding, the amount of income tax withheld, 
the amount of wages subject to tax under the Federal Insurance 
Contributions Act, and the amount of employee tax withheld. See section 
6051 of the Code.
    (5) Use of authorized financial institutions in connection with 
payment of Federal employment taxes. Most employers are required to 
deposit employment taxes either on a monthly basis, a semimonthly basis 
or quarter-monthly period basis as follows:
    (i) Quarter-monthly period deposits. With respect to wages paid 
after January 31, 1971 (March 31, 1971, in the case of wages paid for 
agricultural labor), if at the close of any quarter-monthly period (that 
ends on the 7th, 15th, 22d, or the last day of any month) the aggregate 
amount of undeposited taxes, exclusive of taxes reportable on Form 942, 
is $2,000 or more, the employer shall deposit such taxes within 3 
banking days after the close of such quarter-monthly period.
    (ii) Monthly deposits. With respect to employers not required to 
make deposits under subdivision (i) of this subparagraph, if after 
January 31, 1971 (March 31, 1971, in the case of income tax withheld 
from wages paid for agricultural labor) (a) during any calendar month, 
other than the last month of a calendar quarter, the aggregate amount of 
the employee tax deducted and the employer tax under Chapter 21 and the 
income tax withheld at source on wages under Chapter 24, exclusive of 
taxes reportable on Form 942, exceeds $200 or (b) at the end of any 
month or period of 2 or more months and prior to December 1 of any 
calendar year, the total amount of undeposited taxes imposed by Chapter 
21, with respect to wages paid for agricultural labor, exceeds $200, it 
is the duty of the employer to deposit such amount within 15 days after 
the close of such calendar month.
    (iii) Quarterly and year-end deposits. Whether or not an employer is 
required to make deposits under subdivisions (i) and (ii) of this 
subparagraph, if the amount of such taxes reportable on Form 941 or 943 
(reduced by any previous deposits) exceeds $200, the employer shall, on 
or before the last day of the first calendar month following the period 
for which the return is required to be filed, deposit such amount with 
an authorized financial institution. However, if the amount of such 
taxes (reduced by any previous deposits) does not exceed $200, the 
employer may either include with his return a direct remittance for the 
amount of such taxes or, on or before the last day of the first calendar 
month following the period for which the return is required to be filed, 
voluntarily deposit such amount with an authorized financial 
institution.
    (iv) Additional rules. Deposits under subdivisions (i), (ii) and 
(iii) of this subparagraph are made with an authorized financial 
institution. The remittance of such amount must be accompanied by a 
Federal Tax Deposit form. Each employer making deposits shall report on 
the return for the period with respect to which such deposits are made 
information regarding such deposits in accordance with the instructions 
applicable to such return and pay therewith (or deposit by the due date 
of such return) the balance, if any, of the taxes due for such period.
    (v) Employers under Chapter 22 of the Code. Depositary procedures 
similar to those prescribed in this subparagraph are prescribed for 
employers as defined by the Railroad Retirement Tax Act, except that 
railroad retirement taxes are not requested to be deposited semimonthly 
or quarter-monthly. Such

[[Page 95]]

taxes must be deposited by using a Federal Tax Deposit form.
    (vi) Employers under chapter 23 of the Code. Every person who is an 
employer as defined by the Federal Unemployment Tax Act shall deposit 
the tax imposed under Chapter 23 on or before the last day of the first 
calendar month following the quarterly period in which the amount of 
such tax exceeds $100.
    (6) Separate accounting. If an employer fails to withhold and pay 
over income, social security, or railroad retirement tax due on wages of 
employees, the employer may be required by the district director to 
collect such taxes and deposit them in a separate banking account in 
trust for the United States not later than the second banking day after 
such taxes are collected.
    (b) Provisions special to the Federal Insurance Contributions Act--
(1) Employers' identification numbers. For purposes of the Federal 
Insurance Contributions Act each employer who files Form 941 or Form 943 
must have an identification number. Any such employer who does not have 
an identification number must secure a Form SS-4 from the district 
director of internal revenue or from a district office of the Social 
Security Administration and, after executing the form in accordance with 
the instructions contained thereon, file it with the district director 
or the district office of the Social Security Administration. At a 
subsequent date the district director will assign the employer a number 
which must appear in the appropriate space on each tax return, Form 941 
or Form 943, filed thereafter. The requirement to secure an 
identification number does not apply to an employer who employs only 
employees who are engaged exclusively in the performance of domestic 
service in the employer's private home not on a farm operated for 
profit.
    (2) Employees' account numbers. Each employee (or individual making 
a return of net earnings from self-employment) who does not have an 
account number must file an application on Form SS-5, a copy of which 
may be obtained from any district office of the Social Security 
Administration or from a district director of internal revenue. The 
form, after execution in accordance with the instructions thereon, must 
be filed with the district office of the Social Security Administration, 
and at a later date the employee will be furnished an account number. 
The employee must furnish such number to each employer for whom the 
employee works, in order that such number may be entered on each tax 
return filed thereafter by the employer.
    (3) Reporting of wages. Forms 941, 942, and 943 each require, as a 
part of the return, that the wages of each employee paid during the 
period covered by the return be reported thereon. Form 941a is available 
to employers who need additional space for the listing of employees. 
Employers who meet the requirements of the Social Security 
Administration may, with the approval of the Commissioner of Internal 
Revenue, submit wage information on reels of magnetic tape in lieu of 
Form 941a. It is necessary at times that employers correct wage 
information previously reported. A special form, Form 941c, has been 
adopted for use in correcting erroneous wage information or omissions of 
such wage information on Form 941, 942, or 943. Instructions on Form 
941, 941c, 942, and 943 explain the manner of preparing and filing the 
forms. Any further instructions should be obtained from the district 
director.
    (c) Adjustments by employers--(1) Undercollections and 
underpayments--(i) Employer tax or employee tax. If a return is filed by 
an employer under the Federal Insurance Contributions Act or the 
Railroad Retirement Tax Act, and the employer reports and pays less than 
the correct amount of employer tax or employee tax, the employer is 
required to report and pay the additional amount due. The reporting will 
be an adjustment without interest only if the employer reports and pays 
the additional amount on or before the last day on which the return is 
required to be filed for the return period in which the error is 
ascertained. The employer may so report the additional amount either on 
the return for that period or on a supplemental return for the period 
for which the underpayment was made. If the employer fails to report the 
additional amount due within the time so fixed for making an interest-
free adjustment, the employer nevertheless is

[[Page 96]]

required to report the additional amount in the same manner, but 
interest will be due. No adjustment of an underpayment may be made under 
this section or Sec. 31.6205-1(b)(2) if the employer is sent a notice 
and demand for payment of the additional tax.
    (ii) Income tax withholding. If an employer files a return reporting 
and paying less than the correct amount of income tax required to be 
withheld from wages paid during the return period, the employer is 
required to report and pay the additional amount due, either (a) on a 
return for any return period in the calendar year in which the wages 
were paid, or (b) on a supplemental return for the return period in 
which the wages were paid. The reporting will be an adjustment without 
interest only if the employer reports and pays the additional amount on 
or before the last day on which the return is required to be filed for 
the return period in which the error was ascertained. If an employer 
reports and pays less than the correct amount of income tax required to 
be withheld in a calendar year, and the employer does not correct the 
underpayment in the same calendar year, the employer should consult the 
District Director of Internal Revenue as to the manner of correcting the 
error.
    (2) Overcollections from employees--(i) Employee tax. If an employer 
collects from an employee more than the correct amount of employee tax 
under the Federal Insurance Contributions Act or the Railroad Retirement 
Act, and the error is ascertained within the applicable period of 
limitation on credit or refund, the employer is required either to repay 
the amount to the employee, or to reimburse the employee by applying the 
amount of the overcollection against employee tax which otherwise would 
be collected from the employee after the error is ascertained. If the 
overcollection is repaid to the employee, the employer is required to 
obtain and keep the employee's written receipt showing the date and 
amount of the repayment. In addition, if the employer repays or 
reimburses an employee in any calendar year for an overcollection which 
occurred in a prior calendar year, the employer is required to obtain 
and keep the employee's written statement (a) that the employee has not 
claimed refund or credit of the amount of the overcollection, or if so, 
such claim has been rejected, and (b) that the employee will not claim 
refund or credit of such amount.
    (ii) Income tax withholding. If, in any return period in a calendar 
year, an employer withholds more than the correct amount of income tax, 
and pays over to the Internal Revenue Service the amount withheld, the 
employer may repay or reimburse the employee in the excess amount in any 
subsequent return period in the same calendar year. If the amount is so 
repaid, the employer is required to obtain and keep the employee's 
written receipt showing the date and amount of the repayment.
    (3) Employer's claims for credit or refund of overpayments--(i) 
Employee tax. If an employer repays or reimburses an employee for an 
overcollection of employee tax, as described in subparagraph (2)(i) of 
this paragraph, the employer may claim credit on a return in accordance 
with the instructions applicable to the return. In lieu of claiming 
credit the employer may claim refund by filing Form 843, but the 
employer may not thereafter claim credit for the same overpayment.
    (ii) Income tax withholding. If an employer repays or reimburses an 
employee for an excess amount withheld as income tax, as described in 
subparagraph (2)(ii) of this paragraph, the employer may claim credit on 
a return for a return period in the calendar year in which the excess 
amount was withheld. The employer is not otherwise permitted to claim 
credit or refund for any overpayment of income tax that the employer 
deducted or withheld from an employee.
    (d) Special refunds of employee social security tax. (1) An employee 
who receives wages from more than one employer during a calendar year 
may, under certain conditions, receive a ``special refund'' of the 
amount of employee social security tax (i.e., employee tax under the 
Federal Insurance Contributions Act) deducted and withheld from wages 
that exceed the following amounts: calendar years 1968 through 1971, 
$7,800; calendar year 1972, $9,000; calendar year 1973, $10,800; 
calendar year 1974, $13,200; calendar years

[[Page 97]]

after 1974, an amount equal to the contribution and benefit base (as 
determined under section 230 of the Social Security Act) effective with 
respect to that year. An employee who is entitled to a special refund of 
employee tax with respect to wages received during a calendar year, and 
who is required to file an income tax return for such calendar year (or 
for his last taxable year beginning in such calendar year), may obtain 
the benefits of such special refund only by claiming credit for such 
special refund on such income tax return in the same manner as if such 
special refund were an amount deducted and withheld as income tax at 
source on wages.
    (2) The amount of the special refund allowed as a credit shall be 
considered as an amount deducted and withheld as income tax at source on 
wages. If the amount of such special refund when added to amounts 
deducted and withheld as income tax under chapter 24 exceeds the income 
tax imposed by chapter 1, the amount of the excess constitutes an 
overpayment of income tax, and interest on such overpayment is allowed 
to the extent provided under section 6611 of the Code upon an 
overpayment of income tax resulting from a credit for income tax 
withheld at source on wages.
    (3) If an employee entitled to a special refund of employee social 
security tax is not required to file an income tax return for the year 
in which such special refund may be claimed as a credit, the employee 
may file a claim for refund of the excess social security tax on Form 
843. Claims must be filed with the district director of internal revenue 
for the district in which the employee resides.
    (4) Employee taxes under the Federal Insurance Contributions Act and 
the Railroad Retirement Tax Act include a percentage rate for hospital 
insurance. If in 1968 or any calendar year thereafter employee taxes 
under both Acts are deducted from an employee's wages and compensation 
aggregating more than $7,800, the ``special refund'' provisions may 
apply to the portion of the tax that is deducted for hospital insurance. 
The employee may take credit on Form 1040 for the amount allowable, in 
accordance with the instructions applicable to that form.

[32 FR 15990, Nov. 22, 1967, as amended at 33 FR 6825, May 4, 1968; 33 
FR 17239, Nov. 21, 1968; 36 FR 7586, Apr. 22, 1971; 38 FR 4970, Feb. 23, 
1973; 39 FR 8918, Mar. 7, 1974; 41 FR 20883, May 21, 1976; 45 FR 7257, 
Feb. 1, 1980; 49 FR 19648, 19649, May 9, 1984; 49 FR 25239, June 20, 
1984; 49 FR 36500, Sept. 18, 1984; T.D. 8952, 66 FR 33832, June 26, 
2001]



             Subpart E_Conference and Practice Requirements

    Authority: 68A Stat. 917, 26 U.S.C. 7805; 5 U.S.C. 301.



Sec. 601.501  Scope of rules; definitions.

    (a) Scope of rules. The rules prescribed in this subpart concern, 
among other things, the representation of taxpayers before the Internal 
Revenue Service under the authority of a power of attorney. These rules 
apply to all offices of the Internal Revenue Service in all matters 
under the jurisdiction of the Internal Revenue Service and apply to 
practice before the Internal Revenue Service (as defined in 31 CFR 
10.2(a) and 10.7(a)(7). For special provisions relating to alcohol, 
tobacco, and firearms activities, see Sec. Sec. 601.521 through 
601.527. These rules detail the means by which a recognized 
representative is authorized to act on behalf of a taxpayer. Such 
authority must be evidenced by a power of attorney and declaration of 
representative filed with the appropriate office of the Internal Revenue 
Service. In general, a power of attorney must contain certain 
information concerning the taxpayer, the recognized representative, and 
the specific tax matter(s) for which the recognized representative is 
authorized to act. (See Sec. 601.503(a).) A ``declaration of 
representative'' is a written statement made by a recognized 
representative that he/she is currently eligible to practice before the 
Internal Revenue Service and is authorized to represent the particular 
party on whose behalf he/she acts. (See Sec. 601.502(c).)
    (b) Definitions--(1) Attorney-in-fact. An agent authorized by a 
principal under a power of attorney to perform certain specified act(s) 
or kinds of act(s) on behalf of the principal.

[[Page 98]]

    (2) Centralized Authorization File (CAF) system. An automated file 
containing information regarding the authority of a person appointed 
under a power of attorney or designated under a tax information 
authorization.
    (3) Circular No. 230. Treasury Department Circular No. 230 codified, 
at 31 CFR part 10, which sets forth the regulations governing practice 
before the Internal Revenue Service.
    (4) Declaration of representative. (See Sec. 601.502(c).)
    (5) Delegation of authority. An act performed by a recognized 
representative whereby authority given under a power of attorney is 
delegated to another recognized representative. After a delegation is 
made, both the original recognized representative and the recognized 
representative to whom a delegation is made will be recognized to 
represent the taxpayer. (See Sec. 601.505(b)(2).)
    (6) Form 2848, ``Power of Attorney and Declaration of 
Representative.'' The Internal Revenue Service power of attorney form 
which may be used by a taxpayer who wishes to appoint an individual to 
represent him/her before the Internal Revenue Service. (See Sec. 
601.503(b)(1).)
    (7) Matter. The application of each tax imposed by the Internal 
Revenue Code and the regulations thereunder for each taxable period 
constitutes a (separate) matter.
    (8) Office of the Internal Revenue Service. The Office of each 
district director, the office of each service center, the office of each 
compliance center, the office of each regional commissioner, and the 
National Office constitute separate offices of the Internal Revenue 
Service.
    (9) Power of attorney. A document signed by the taxpayer, as 
principal, by which an individual is appointed as attorney-in-fact to 
perform certain specified act(s) or kinds of act(s) on behalf of the 
principal. Specific types of powers of attorney include the following--
    (i) General power of attorney. The attorney-in-fact is authorized to 
perform any or all acts the taxpayer can perform.
    (ii) Durable power of attorney. A power of attorney which specifies 
that the appointment of the attorney-in-fact will not end due to either 
the passage of time (i.e., the authority conveyed will continue until 
the death of the taxpayer) or the incompetency of the principal (e.g., 
the principal becomes unable or is adjudged incompetent to perform his/
her business affairs).
    (iii) Limited power of attorney. A power of attorney which is 
limited in any facet (i.e., a power of attorney authorizing the 
attorney-in-fact to perform only certain specified acts as contrasted to 
a general power of attorney authorizing the representative to perform 
any and all acts the taxpayer can perform).
    (10) Practice before the Internal Revenue Service. Practice before 
the Internal Revenue Service encompasses all matters connected with 
presentation to the Internal Revenue Service or any of its personnel 
relating to a taxpayer's rights, privileges, or liabilities under laws 
or regulations administered by the Internal Revenue Service. Such 
presentations include the preparation and filing of necessary documents, 
correspondence with and communications to the Internal Revenue Service, 
and the representation of a taxpayer at conferences, hearings, and 
meetings. (See 31 CFR 10.2(a) and 10.7(a)(7).)
    (11) Principal. A person (i.e., taxpayer) who appoints an attorney-
in-fact under a power of attorney.
    (12) Recognized representative. An individual who is recognized to 
practice before the Internal Revenue Service under the provisions of 
Sec. 601.502.
    (13) Representation. Acts performed on behalf of a taxpayer by a 
representative in practice before the Internal Revenue Service. (See 
Sec. 601.501(b)(10).) Representation does not include the furnishing of 
information at the request of the Internal Revenue Service or any of its 
officers or employees. (See 31 CFR 10.7(c).)
    (14) Substitution of representative. An act performed by an 
attorney-in-fact whereby authority given under a power of attorney is 
transferred to another recognized representative. After a substitution 
is made, only the newly recognized representative will be considered the 
taxpayer's representative. (See Sec. 601.505(b)(2).)
    (15) Tax information authorization. A document signed by the 
taxpayer authorizing any individual or entity (e.g.,

[[Page 99]]

corporation, partnership, trust or organization) designated by the 
taxpayer to receive and/or inspect confidential tax information in a 
specified matter. (See section 6103 of the Internal Revenue Code and the 
regulations thereunder.)
    (c) Conferences--(1) Scheduling. The Internal Revenue Service 
encourages the discussion of any Federal tax matter affecting a 
taxpayer. Conferences may be offered only to taxpayers and/or their 
recognized representative(s) acting under a valid power of attorney. As 
a general rule, such conferences will not be held without previous 
arrangement. However, if a compelling reason is shown by the taxpayer 
that an immediate conference should be held, the Internal Revenue 
Service official(s) responsible for the matter has the discretion to 
make an exception to the general rule.
    (2) Submission of information. Every written protest, brief, or 
other statement the taxpayer or recognized representative wishes to be 
considered at any conference should be submitted to or filed with the 
appropriate Internal Revenue Service official(s) at least five business 
days before the date of the conference. If the taxpayer or the 
representative is unable to meet this requirement, arrangement should be 
made with the appropriate Internal Revenue Service official for a 
postponement of the conference to a date mutually agreeable to the 
parties. The taxpayer or the representative remains free to submit 
additional or supporting facts or evidence within a reasonable time 
after the conference.

[56 FR 24003, May 28, 1991; amended at 57 FR 27356, June 19, 1992]



Sec. 601.502  Recognized representative.

    (a) A recognized representative is an individual who is
    (1) Appointed as an attorney-in-fact under a power of attorney, and 
a
    (2) Member of one of the categories described in Sec. 601.502(b) 
and who files a declaration of representative, as described in Sec. 
601.502(c).
    (b) Categories--(1) Attorney. Any individual 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;
    (2) Certified public accountant. Any individual who is duly 
qualified to practice as a certified public accountant in any state, 
possession, territory, commonwealth, or the District of Columbia;
    (3) Enrolled agent. Any individual who is enrolled to practice 
before the Internal Revenue Service and is in active status pursuant to 
the requirements of Circular No. 230;
    (4) Enrolled actuary. Any individual who is enrolled as an actuary 
by and is in active status with the Joint Board for the Enrollment of 
Actuaries pursuant to 29 U.S.C. 1242.
    (5) Other individuals--(i) Temporary recognition. Any individual who 
is granted temporary recognition as an enrolled agent by the Director of 
Practice (31 CFR 10.5(c)).
    (ii) Practice based on a relationship or special status with a 
taxpayer. Any individual authorized to represent a taxpayer with whom/
which a special relationship exists (31 CFR 10.7(a) (1)-(6)). (For 
example, an individual may represent another individual who is his/her 
regular full-time employer or a member of his/her immediate family; an 
individual who is a bona fide officer or regular full-time employee of a 
corporation or certain other organizations may represent that entity.)
    (iii) Unenrolled return preparer. Any individual who signs a return 
as having prepared it for a taxpayer, or who prepared a return with 
respect to which the instructions or regulations do not require that the 
return be signed by the preparer. The acts which an unenrolled return 
preparer may perform are limited to representation of a taxpayer before 
revenue agents and examining officers of the Examination Division in the 
offices of District Director with respect to the tax liability of the 
taxpayer for the taxable year or period covered by a return prepared by 
the unenrolled return prepared (31 CFR 10.7(a)(7)).
    (iv) Special appearance. Any individual who, upon written 
application, is authorized by the Director of Practice to represent a 
taxpayer in a particular matter (31 CFR 10.7(b)).
    (c) Declaration of representative. A recognized representative must 
attach to

[[Page 100]]

the power of attorney a written declaration (e.g., part II of form 2848) 
stating the following--

    (1) I am not currently under suspension or disbarment from practice 
before the Internal Revenue Service or other practice of my profession 
by any other authority;
    (2) I am aware of the regulations contained in Treasury Department 
Circular No. 230 (31 CFR part 10), concerning the practice of attorneys, 
certified public accountants, enrolled agents, enrolled actuaries, and 
others);
    (3) I am authorized to represent the taxpayer(s) identified in the 
power of attorney; and
    (4) I am an individual described in Sec. 601.502(b).


If an individual is unable to make such declaration, he/she may not 
engage in representation of a taxpayer before the Internal Revenue 
Service or perform the acts described in Sec. Sec. 601.504(a) (2) 
through (6).

[56 FR 24004, May 28, 1991; amended at 57 FR 27356, June 19, 1992]



Sec. 601.503  Requirements of power of attorney, signatures, fiduciaries 
and Commissioner's authority to substitute other requirements.

    (a) Requirements. A power of attorney must contain the following 
information--
    (1) Name and mailing address of the taxpayer;
    (2) Identification number of the taxpayer (i.e., social security 
number and/or employer identification number);
    (3) Employee plan number (if applicable);
    (4) Name and mailing address of the recognized representative(s);
    (5) Description of the matter(s) for which representation is 
authorized which, if applicable, must include--
    (i) The type of tax involved;
    (ii) The Federal tax form number;
    (iii) The specific year(s)/period(s) involved; and
    (iv) In estate matters, decedent's date of death; and
    (6) A clear expression of the taxpayer's intention concerning the 
scope of authority granted to the recognized representative(s).
    (b) Acceptable power of attorney documents--(1) Form 2848. A 
properly completed form 2848 satisfies the requirements for both a power 
of attorney (as described in Sec. 601.503(a)) and a declaration of 
representative (as described in Sec. 601.502(c)).
    (2) Other documents. The Internal Revenue Service will accept a 
power of attorney other than form 2848 provided such document satisfies 
the requirements of Sec. 601.503(a). However, for purposes of 
processing such documents onto the Centralized Authorization File (see 
Sec. 601.506(d)), a completed form 2848 must be attached. (In such 
situations, form 2848 is not the operative power of attorney and need 
not be signed by the taxpayer. However, the Declaration of 
Representative must be signed by the representative.)
    (3) Special provision. The Internal Revenue Service will not accept 
a power of attorney which fails to include the information required by 
Sec. Sec. 601.503(a)(1) through (5). If a power of attorney fails to 
include some or all of the information required by such section, the 
attorney-in-fact can cure this defect by executing a form 2848 (on 
behalf of the taxpayer) which includes the missing information. 
Attaching a form 2848 to a copy of the original power of attorney will 
validate the original power of attorney (and will be treated in all 
circumstances as one signed and filed by the taxpayer) provided the 
following conditions are satisfied--
    (i) The original power of attorney contemplates authorization to 
handle, among other things, Federal tax matters, (e.g., the power of 
attorney includes language to the effect that the attorney-in-fact has 
the authority to perform any and all acts).
    (ii) The attorney-in-fact attaches a statement (signed under penalty 
of perjury) to the form 2848 which states that the original power of 
attorney is valid under the laws of the governing jurisdiction.
    (4) Other categories of powers of attorney. Categories of powers of 
attorney not addressed in these rules (e.g., durable powers of attorney 
and limited powers of attorney) will be accepted by the Internal Revenue 
Service provided such documents satisfy the requirements of Sec. Sec. 
601.503(b) (2) or (3).
    (c) Signatures. Internal Revenue Service officials may require a 
taxpayer (or

[[Page 101]]

such individual(s) required or authorized to sign on behalf of a 
taxpayer) to submit appropriate identification or evidence of authority. 
Except when form 2848 (or its equivalent) is executed by an attorney-in-
fact under the provisions of Sec. 601.503(b)(3), the individual who 
must execute a form 2848 depends on the type of taxpayer involved--
    (1) Individual taxpayer. In matter(s) involving an individual 
taxpayer, a power of attorney must be signed by such individual.
    (2) Husband and wife. In matters involving a joint return the 
following rules apply--
    (i) Joint representation. In the case of any matter concerning a 
joint return in which both husband and wife are to be represented by the 
same representative(s), the power of attorney must be executed by both 
husband and wife.
    (ii) Individual representation. In the case of any matter concerning 
a joint return in which both husband and wife are not to be represented 
by the same recognized representative(s), the power of attorney must be 
executed by the spouse who is to be represented. However, the recognized 
representative of such spouse cannot perform any act with respect to a 
tax matter that the spouse being represented cannot perform alone.
    (3) Corporation. In the case of a corporation, a power of attorney 
must be executed by an officer of the corporation having authority to 
legally bind the corporation, who must certify that he/she has such 
authority.
    (4) Association. In the case of an association, a power of attorney 
must be executed by an officer of the association having authority to 
legally bind the association, who must certify that he/she has such 
authority.
    (5) Partnership. In the case of a partnership, a power of attorney 
must be executed by all partners, or if executed in the name of the 
partnership, by the partner or partners duly authorized to act for the 
partnership, who must certify that he/she has such authority.
    (6) Dissolved partnership. In the case of a dissolved partnership, 
each of the former partners must execute a power of attorney. However, 
if one or more of the former partners is deceased, the following 
provisions apply--
    (i) The legal representative of each deceased partner(s) (or such 
person(s) having legal control over the disposition of partnership 
interest(s) and/or the share of partnership asset(s) of the deceased 
partner(s)) must execute a power of attorney in the place of such 
deceased partner(s). (See Sec. 601.503(c)(6)(ii).)
    (ii) Notwithstanding Sec. 601.503(c)(6)(i), if the laws of the 
governing jurisdiction provide that such partner(s) has exclusive right 
to control or possession of the firm's assets for the purpose of winding 
up its affairs, the signature(s) of the surviving partner(s) alone will 
be sufficient. (If the surviving partner(s) claims exclusive right to 
control or possession of the firm's assets for the purpose of winding up 
its affairs, Internal Revenue Service officials may require the 
submission of a copy of or a citation to the pertinent provisions of the 
law of the governing jurisdiction upon which the surviving partner(s) 
relies.)
    (d) Fiduciaries. In general, when a fiduciary is involved in a tax 
matter, a power of attorney is not required. Instead form 56, ``Notice 
Concerning Fiduciary Relationship'' should be filed. Types of taxpayer 
for which fiduciaries act are--
    (1) Dissolved corpoority of the voting stock of the corporation as 
of the date of dissolution. Internal Revenue Service officials may 
require submission of a statement showing the total number of 
outstanding shares of voting stock as of the date of dissolution, the 
number of shares held by each signatory to a power of attorney, the date 
of dissolution, and a representation that no trustee has been appointed.
    (2) Insolvent taxpayer. In the case of an insolvent taxpayer, form 
56, ``Notice Concerning Fiduciary Relationship,'' should be filed by the 
trustee, receiver, or attorney appointed by the court. Internal Revenue 
Service officials may require the submission of a certified order or 
document from the court having jurisdiction over the insolvent taxpayer 
which shows the appointment and qualification of the trustee, receiver, 
or attorney and that his/her authority has not been terminated. In cases 
pending before a court of the United States (e.g., U.S. District Court

[[Page 102]]

or U.S. Bankruptcy Court), an authenticated copy of the order approving 
the bond of the trustee, receiver, or attorney will meet this 
requirement.
    (3) Deceased taxpayers--(i) Executor, personal representative or 
administrator. In the case of a deceased taxpayer, a form 56, ``Notice 
Concerning Fiduciary Relationship,'' should be filed by the executor, 
personal representative or administrator if one has been appointed and 
is responsible for disposition of the matter under consideration. 
Internal Revenue Service officials may require the submission of a 
short-form certificate (or authenticated copy of letters testamentary or 
letters of administration) showing that such authority is in full force 
and effect at the time the form 56, ``Notice Concerning Fiduciary 
Relationship,'' is filed.
    (ii) Testamentary trustee(s). In the event that a trustee is acting 
under the provisions of the will, a form 56, ``Notice Concerning 
Fiduciary Relationship,'' should be filed by the trustee, unless the 
executor, personal representative or administrator has not been 
discharged and is responsible for disposition of the matter. Internal 
Revenue Service officials may require either the submission of evidence 
of the discharge of the executor and appointment of the trustee or other 
appropriate evidence of the authority of the trustee.
    (iii) Residuary legatee(s). If no executor, administrator, or 
trustee named under the will is acting or responsible for disposition of 
the matter and the estate has been distributed to the residuary 
legatee(s), a form 56, ``Notice Concerning Fiduciary Relationship,'' 
should be filed by the residuary legatee(s). Internal Revenue Service 
officials may require the submission of a statement from the court 
certifying that no executor, administrator, or trustee named under the 
will is acting or responsible for disposition of the matter, naming the 
residuary legatee(s), and indicating the proper share to which each is 
entitled.
    (iv) Distributee(s). In the event that the decedent died intestate 
and the administrator has been discharged and is not responsible for 
disposition of the matter (or none was ever appointed), a form 56, 
``Notice Concerning Fiduciary Relationship,'' should be filed by the 
distributee(s). Internal Revenue Service officials may require the 
submission of evidence of the discharge of the administrator (if one had 
been appointed) and evidence that the administrator is not responsible 
for disposition of the matter. It also may require a statement(s) signed 
under penalty of perjury (and such other appropriate evidence as can be 
produced) to show the relationship of the individual(s) who sign the 
form 56, ``Notice Concerning Fiduciary Relationship,'' to the decedent 
and the right of each signer to the respective shares of the assets 
claimed under the law of the domicile of the decedent.
    (4) Taxpayer for whom a guardian or other fiduciary has been 
appointed. In the case of a taxpayer for whom a guardian or other 
fiduciary has been appointed by a court of record, a form 56, ``Notice 
Concerning Fiduciary Relationship,'' should be filed by the fiduciary. 
Internal Revenue Service officials may require the submission of a court 
certificate or court order showing that the individual who executes the 
form 56, ``Notice Concerning Fiduciary Relationship,'' has been 
appointed and that his/her appointment has not been terminated.
    (5) Taxpayer who has appointed a trustee. In the case of a taxpayer 
who has appointed a trustee, a form 56, ``Notice Concerning Fiduciary 
Relationship,'' should be filed by the trustee. If there is more than 
one trustee appointed, all should join unless it is shown that fewer 
than all have authority to act. Internal Revenue Service officials may 
require the submission of documentary evidence of the authority of the 
trustee to act. Such evidence may be either a copy of a properly 
executed trust instrument or a certified copy of extracts from the trust 
instruments, showing--
    (i) The date of the instrument;
    (ii) That it is or is not of record in any court;
    (iii) The names of the beneficiaries;
    (iv) The appointment of the trustee, the authority granted, and 
other information as may be necessary to show that such authority 
extends to Federal tax matters; and

[[Page 103]]

    (v) That the trust has not been terminated and the trustee appointed 
therein is still legally acting as such.
    In the event that the trustee appointed in the original trust 
instrument has been replaced by another trustee, documentary evidence of 
the appointment of the new trustee must be submitted.
    (e) Commissioner's authority to substitute other requirements for 
power of attorney. Upon application of a taxpayer or a recognized 
representative, the Commissioner of Internal Revenue may substitute a 
requirement(s) other than provided herein for a power of attorney as 
evidence of the authority of the representative.

[56 FR 24005, May 28, 1991; 57 FR 27356, June 19, 1992]



Sec. 601.504  Requirements for filing power of attorney.

    (a) Situations in which a power of attorney is required. Except as 
otherwise provided in Sec. 601.504(b), a power of attorney is required 
by the Internal Revenue Service when the taxpayer wishes to authorize a 
recognized representative to perform one or more of the following acts 
on behalf of the taxpayer--
    (1) Representation. (See Sec. Sec. 601.501(b)(10) and 
601.501(b)(13).)
    (2) Waiver. Offer and/or execution of either
    (i) A waiver of restriction on assessment or collection of a 
deficiency in tax, or
    (ii) A waiver of notice of disallowance of a claim for credit or 
refund.
    (3) Consent. Execution of a consent to extend the statutory period 
for assessment or collection of a tax.
    (4) Closing agreement. Execution of a closing agreement under the 
provisions of the Internal Revenue Code and the regulations thereunder.
    (5) Check drawn on the United States Treasury. The authority to 
receive (but not endorse or collect) a check drawn on the United States 
Treasury must be specifically granted in a power of attorney. (The 
endorsement and payment of a check drawn on the United States Treasury 
are governed by Treasury Department Circular No. 21, as amended, 31 CFR 
part 240. Endorsement and payment of such check by any person other than 
the payee must be made under one of the special types of powers of 
attorney prescribed by Circular No. 21, 31 CFR part 240. For 
restrictions on the assignment of claims, see Revised Statute section 
3477, as amended (31 U.S.C. 3727).)
    (6) Signing tax returns. The filing of a power of attorney does not 
authorize the recognized representative to sign a tax return on behalf 
of the taxpayer unless such act is both--
    (i) Permitted under the Internal Revenue Code and the regulations 
thereunder (e.g., the authority to sign income tax returns is governed 
by the provisions of Sec. 1.6012-1(a)(5) of the Income Tax 
Regulations); and
    (ii) Specifically authorized in the power of attorney.
    (b) Situations in which a power of attorney is not required--(1) 
Disclosure of confidential tax information. The submission of a tax 
information authorization to request a disclosure of confidential tax 
information does not constitute practice before the Internal Revenue 
Service. (Such procedure is governed by the provisions of section 6103 
of the Internal Revenue Code and the regulations thereunder.) 
Nevertheless, if a power of attorney is properly filed, the recognized 
representative also is authorized to receive and/or inspect confidential 
tax information concerning the matter(s) specified (provided the power 
of attorney places no limitations upon such disclosure).
    (2) Estate matter. A power of attorney is not required at a 
conference concerning an estate tax matter if the individual seeking to 
act as a recognized representative presents satisfactory evidence to 
Internal Revenue Service officials that he/she is--
    (i) An individual described in Sec. 601.502(b); and
    (ii) The attorney of record for the executor, personal 
representative, or administrator before the court where the will is 
probated or the estate is administered.
    (3) Bankruptcy matters. A power of attorney is not required in the 
case of a trustee, receiver, or an attorney (designated to represent a 
trustee, receiver, or debtor in possession) appointed by a court having 
jurisdiction over a debtor. In such a case, Internal Revenue Service 
officials may require

[[Page 104]]

the submission of a certificate from the court having jurisdiction over 
the debtor showing the appointment and qualification of the trustee, 
receiver, or attorney and that his/her authority has not been 
terminated. In cases pending before a court of the United States (e.g., 
U.S. District Court or U.S. Bankruptcy Court), an authenticated copy of 
the order approving the bond of the trustee, receiver, or attorney will 
meet this requirement.
    (c) Administrative requirements of filing--(1) General. Except as 
provided in this section, a power of attorney (including the declaration 
of representative and any other required statement(s)) must be filed in 
each office of the Internal Revenue Service in which the recognized 
representative desires to perform one or more of the acts described in 
Sec. 601.504(a).
    (2) Regional offices. If a power of attorney (including the 
declaration of representative and any other required statement(s)) is 
filed with the office of a district director or with a service center 
which has the matter under consideration, it is not necessary to file a 
copy with the office of a regional commissioner which subsequently has 
the matter under consideration unless requested.
    (3) National Office. In case of a request for a ruling or other 
matter to be considered in the National Office, a power of attorney, 
including the declaration of representative and any other required 
statement(s), must be submitted with each request or matter.
    (4) Copy of power of attorney. The Internal Revenue Service will 
accept either the original or a copy of a power of attorney. A copy of a 
power of attorney received by facsimile transmission (FAX) also will be 
accepted.
    (d) Practice by correspondence. If an individual desires to 
represent a taxpayer through correspondence with the Internal Revenue 
Service, such individual must submit a power of attorney, including the 
declaration of representative and any other required statement(s), even 
though no personal appearance is contemplated.

[56 FR 24007, May 28, 1991; 57 FR 27356, June 19, 1992]



Sec. 601.505  Revocation, change in representation and substitution or 
delegation of representative.

    (a) By the taxpayer--(1) New power of attorney filed. A new power of 
attorney revokes a prior power of attorney if it is granted by the 
taxpayer to another recognized representative with respect to the same 
matter. However, a new power of attorney does not revoke a prior power 
of attorney if it contains a clause stating that it does not revoke such 
prior power of attorney and there is attached to the new power of 
attorney either--
    (i) A copy of the unrevoked prior power of attorney; or
    (ii) A statement signed by the taxpayer listing the name and address 
of each recognized representative authorized under the prior unrevoked 
power of attorney.
    (2) Statement of revocation filed. A taxpayer may revoke a power of 
attorney without authorizing a new representative by filing a statement 
of revocation with those offices of the Internal Revenue Service where 
the taxpayer has filed the power of attorney to be revoked. The 
statement of revocation must indicate that the authority of the first 
power of attorney is revoked and must be signed by the taxpayer. Also, 
the name and address of each recognized representative whose authority 
is revoked must be listed (or a copy of the power of attorney to be 
revoked must be attached).
    (b) By the recognized representative--(1) Revocation of power of 
attorney. A recognized representative may withdraw from representation 
in a matter in which a power of attorney has been filed by filing a 
statement with those offices of the Internal Revenue Service where the 
power of attorney to be revoked was filed. The statement must be signed 
by the representative and must identify the name and address of the 
taxpayer(s) and the matter(s) from which the representative is 
withdrawing.
    (2) Substitution or delegation of recognized representative. Any 
recognized representative appointed in a power of attorney may 
substitute or delegate authority under the power of attorney to another 
recognized representative if

[[Page 105]]

substitution or delegation is specifically permitted under the power of 
attorney. Unless otherwise provided in the power of attorney, a 
recognized representative may make a substitution or delegation without 
the consent of any other recognized representative appointed to 
represent the taxpayer in the same matter. A substitution or delegation 
if effected by filing the following items with offices of the Internal 
Revenue Service where the power of attorney has been filed--
    (i) Notice of substitution or delegation. A Notice of Substitution 
or Delegation is a statement signed by the recognized representative 
appointed under the power of attorney. The statement must contain the 
name and mailing address of the new recognized representative and, if 
more than one individual is to represent the taxpayer in the matter, a 
designation of which recognized representative is to receive notices and 
other written communications;
    (ii) Declaration of representative. A written declaration which is 
made by the new representative as required by Sec. 601.502(c); and
    (iii) Power of attorney. A power of attorney which specifically 
authorizes the substitution or delegation.

An employee of a recognized representative may not be substituted for 
his/her employer with respect to the representation of a taxpayer before 
the Internal Revenue Service unless the employee is a recognized 
representative in his/her own capacity under the provisions of Sec. 
601.502(b). However, even if such employee is not a recognized 
representative in his/her own capacity under the provisions of Sec. 
601.502(a), that individual may be authorized by the taxpayer under a 
tax information authorization to receive and/or inspect confidential tax 
information under the provisions of section 6103 of the Internal Revenue 
Code and the regulations thereunder.

[56 FR 24007, May 28, 1991, amended at 57 FR 27356, June 19, 1992]



Sec. 601.506  Notices to be given to recognized representative; direct 

contact with taxpayer; delivery of a check drawn on the United States 
Treasury to 
          recognized representative.

    (a) General. Any notice or other written communication (or a copy 
thereof) required or permitted to be given to a taxpayer in any matter 
before the Internal Revenue Service must be given to the taxpayer and, 
unless restricted by the taxpayer, to the representative according to 
the following procedures--
    (1) If the taxpayer designates more than one recognized 
representative to receive notices and other written communications, it 
will be the practice of the Internal Revenue Service to give copies of 
such to two (but not more than two) individuals so designated.
    (2) In a case in which the taxpayer does not designate which 
recognized representative is to receive notices, it will be the practice 
of the Internal Revenue Service to give notices and other communications 
to the first recognized representative appointed on the power of 
attorney.
    (3) Failure to give notice or other written communication to the 
recognized representative of a taxpayer will not affect the validity of 
any notice or other written communication delivered to a taxpayer.

Unless otherwise indicated in the document, a power of attorney other 
than form 2848 will be presumed to grant the authority to receive 
notices or other written communication (or a copy thereof) required or 
permitted to be given to a taxpayer in any matter(s) before the Internal 
Revenue Service to which the power of attorney pertains.
    (b) Cases where taxpayer may be contacted directly. Where a 
recognized representative has unreasonably delayed or hindered an 
examination, collection or investigation by failing to furnish, after 
repeated request, nonprivileged information necessary to the 
examination, collection or investigation, the Internal Revenue Service 
employee conducting the examination, collection or investigation may 
request the permission of his/her immediate supervisor to contact the 
taxpayer directly for such information.

[[Page 106]]

    (1) Procedure. If such permission is granted, the case file will be 
documented with sufficient facts to show how the examination, collection 
or investigation was being delayed or hindered. Written notice of such 
permission, briefly stating the reason why it was granted, will be given 
to both the recognized representative and the taxpayer together with a 
request of the taxpayer to supply such nonprivileged information. (See 
7521(c) of the Internal Revenue Code and the regulations thereunder.)
    (2) Effect of direct notification. Permission to by-pass a 
recognized representative and contact a taxpayer directly does not 
automatically disqualify an individual to act as the recognized 
representative of a taxpayer in a matter. However, such information may 
be referred to the Director of Practice for possible disciplinary 
proceedings under Circular No. 230, 31 CFR part 10.
    (c) Delivery of a check drawn on the United States Treasury--(1) 
General. A check drawn on the United States Treasury (e.g., a check in 
payment of refund of internal revenue taxes, penalties, or interest, see 
Sec. 601.504(a)(5)) will be mailed to the recognized representative of 
a taxpayer provided that a power of attorney is filed containing 
specific authorization for this to be done.
    (2) Address of recognized representative. The check will be mailed 
to the address of the recognized representative listed on the power of 
attorney unless such recognized representative notifies the Internal 
Revenue Service in writing that his/her mailing address has been 
changed.
    (3) Authorization of more than one recognized representative. In the 
event a power of attorney authorizes more than one recognized 
representative to receive a check on the taxpayer's behalf, and such 
representatives have different addresses, the Internal Revenue Service 
will mail the check diretly to the taxpayer, unless a statement (signed 
by all of the recognized representatives so authorized) is submitted 
which indicates the address to which the check is to be mailed.
    (4) Cases in litigation. The provisions of Sec. 601.506(c) 
concerning the issuance of a tax refund do not apply to the issuance of 
a check in payment of claims which have been either reduced to judgment 
or settled in the course (or as a result) of litigation.
    (d) Centralized Authorization File (CAF) system--(1) Information 
recorded onto the CAF system. Information from both powers of attorney 
and tax information authorizations is recorded onto the CAF system. Such 
information enables Internal Revenue Service personnel who do not have 
access to the actual power of attorney or tax information authorizations 
to--
    (i) Determine whether a recognized representative or an appointee is 
authorized by a taxpayer to receive and/or inspect confidential tax 
information;
    (ii) Determine, in the case of a recognized representative, whether 
that representative is authorized to perform the acts set forth in Sec. 
601,504(a); and
    (iii) Send copies of computer generated notices and communications 
to an appointee or recognized representative so authorized by the 
taxpayer.
    (2) CAF number. A Centralized Authorization File (CAF) number 
generally will be issued to--
    (i) A recognized representative who files a power of attorney and a 
written declaration of representative; or
    (ii) An appointee authorized under a tax information authorization.

The issuance of a CAF number does not indicate that a person is either 
recognized or authorized to practice before the Internal Revenue 
Service. Such determination is made under the provisions of Circular No. 
230, 31 CFR part 10. The purpose of the CAF number is to facilitate the 
processing of a power of attorney or a tax information authorization 
submitted by a recognized representative or an appointee. A recognized 
representative or an appointee should include the same CAF number on 
every power of attorney or tax information authorization filed. However, 
because the CAF number is not a substantive requirement (i.e., as listed 
in Sec. 601.503(a)), a tax information authorization or power of 
attorney which does not include such number will not be rejected based 
on the absence of a CAF number.

[[Page 107]]

    (3) Tax matters recorded on CAF. Although a power of attorney or tax 
information authorization may be filed in all matters under the 
jurisdiction of the Internal Revenue Service, only those documents which 
meet each of the following criteria will be recorded onto the CAF 
system--
    (i) Specific tax period. Only documents which concern a matter(s) 
relating to a specific tax period will be recorded onto the CAF system. 
A power of attorney or tax information authorization filed in a matter 
unrelated to a specific period (e.g., the 100% penalty for failure to 
pay over withholding taxes imposed by section 6672 of the Internal 
Revenue Code, applications for an employer identification number, and 
requests for a private letter ruling request pertaining to a proposed 
transaction) cannot be recorded onto the CAF system.
    (ii) Future three-year limitation. Only documents which concern a 
tax period that ends no later than three years after the date on a power 
of attorney is received by the Internal Revenue Service will be recorded 
onto the CAF system. For example, a power of attorney received by the 
Internal Revenue Service on August 1, 1990, which indicates that the 
authorization applies to form 941 for the quarters ended December 31, 
1990 through December 31, 2000, will be recorded onto the CAF system for 
the applicable tax periods which end no later than July 31, 1993 (i.e., 
three years after the date of receipt by the Internal Revenue Service).
    (iii) Documents for prior tax periods. Documents which concern any 
tax period which has ended prior to the date on which a power of 
attorney is received by the Internal Revenue Service will be recorded 
onto the CAF system provided that matters concerning such years are 
under consideration by the Internal Revenue Service.
    (iv) Limitation on representatives recorded onto the CAF system. No 
more than three representatives appointed under a power of attorney or 
three persons designated under a tax information authorization will be 
recorded onto the CAF system. If more than three representatives are 
appointed under a power of attorney or more than three persons 
designated under a tax information authorization, only the first three 
names will be recorded onto the CAF system.

The fact that a power of attorney or tax information authorization 
cannot be recorded onto the CAF system is not determinative of the 
(current or future) validity of such document. (For example, documents 
which concern tax periods that end more than three years from the date 
of receipt by the IRS are not invalid for the period(s) not recorded 
onto the CAF system, but can be resubmitted at a later date.)

[56 FR 24008, May 28, 1991]



Sec. 601.507  Evidence required to substantiate facts alleged by a 
recognized representative.

    The Internal Revenue Service may require a recognized representative 
to submit all evidence, except that of a supplementary or incidental 
character, over a declaration (signed under penalty of perjury) that the 
recognized representative prepared such submission and that the facts 
contained therein are true. In any case in which a recognized 
representative is unable or unwilling to declare his/her own knowledge 
that the facts are true and correct, the Internal Revenue Service may 
require the taxpayer to make such a declaration under penalty of 
perjury.

[56 FR 24009, May 28, 1991]



Sec. 601.508  Dispute between recognized representatives of a taxpayer.

    Where there is a dispute between two or more recognized 
representatives concerning who is entitled to represent a taxpayer in a 
matter pending before the Internal Revenue Service (or to receive a 
check drawn on the United States Treasury), the Internal Revenue Service 
will not recognize any party. However, if the contesting recognized 
representatives designate one or more of their number under the terms of 
an agreement signed by all, the Internal Revenue Service will recognize 
such designated recognized representatives upon receipt of a copy of 
such agreement according to the terms of the power of attorney.

[56 FR 24009, May 28, 1991]

[[Page 108]]



Sec. 601.509  Power of attorney not required in cases docketed in the 
Tax Court of the United States.

    The petitioner and the Commissioner of Internal Revenue stand in the 
position of parties litigant before a judicial body in a case docketed 
in the Tax Court of the United States. The Tax Court has its own rules 
of practice and procedure and its own rules respecting admission to 
practice before it. Accordingly, a power of attorney is not required to 
be submitted by an attorney of record in a case which is docketed in the 
Tax Court. Correspondence in connection with cases docketed in the Tax 
Court will be addressed to counsel of record before the Court. However, 
a power of attorney is required to be submitted by an individual other 
than the attorney of record in any matter before the Internal Revenue 
Service concerning a docketed case.

[56 FR 24009, May 8, 1991]

       Requirements for Alcohol, Tobacco, and Firearms Activities



Sec. 601.521  Requirements for conference and representation in conference.

    Any person desiring a conference in the office of the regional 
regulatory administrator in the Bureau of Alcohol, Tobacco, and Firearms 
of his region or of the Director, Bureau of Alcohol, Tobacco, and 
Firearms, in Washington, DC, relative to any matter arising in 
connection with his operations, will be accorded such a conference upon 
request. No formal requirements are prescribed for such conference. 
Where an industry member or other person is to be represented in 
conference, the representative must be recognized to practice as 
provided in paragraph (b) of Sec. 601.502. When a representative 
presents himself on behalf of an industry member or other person for the 
initial meeting in the office of an regional regulatory administrator in 
the Bureau of Alcohol, Tobacco, and Firearms or of the Director, Bureau 
of Alcohol, Tobacco, and Firearms, he must submit evidence of 
recognition; or he should state in his first letter or other written 
communication with such office whether he is recognized to practice, and 
should enclose evidence of such recognition. In the case of a qualified 
attorney or a qualified certified public accountant, the filing of the 
applicable written declaration described in paragraphs (b)(1) (i) and 
(ii) of Sec. 601.502 shall constitute evidence of recognition. In the 
case of an enrollee, the filing of a notification, stating that he is 
enrolled to practice and giving his enrollment number or the expiration 
date of his enrollment card, shall constitute evidence of recognition.

[34 FR 6432, Apr. 12, 1969, as amended at 45 FR 7259, Feb. 1, 1980]



Sec. 601.522  Power of attorney.

    Except as otherwise provided in this section, a power of attorney, 
or copy thereof, will be required for a representative of a principal 
(a) to perform the acts specified in paragraph (c)(1) of Sec. 601.502; 
or (b) to sign any application, bond, notice, return, report, or other 
document required by, or provided for in, regulations issued pursuant to 
chapter 51 (Distilled Spirits, Wines, and Beer), Chapter 52 (Cigars, 
Cigarettes, and Cigarette Papers and Tubes), and chapter 53 (Machine 
Guns, Destructive Devices, and Certain Other Firearms), Internal Revenue 
Code, title 1 of the Gun Control Act of 1968, or the Federal Alcohol 
Administration Act, which is filed with or acted on by (1) the office of 
a regional regulatory administrator in the Bureau of Alcohol, Tobacco, 
and Firearms, or (2) the Director, Bureau of Alcohol, Tobacco, and 
Firearms. The power of attorney may be executed on Form 1534, copies of 
which may be obtained from the regional regulatory administrator in the 
Bureau of Alcohol, Tobacco, and Firearms. A power of attorney will not 
be required for a person authorized to sign on behalf of the principal 
by articles of incorporation, bylaws, or a board of directors, where an 
acceptable copy of such authorization is on file in the office of the 
regional regulatory administrator or of the Director. A power of 
attorney filed under the provisions of this section may cover one or 
more acts for which a power of attorney is required and will continue in 
effect with respect to such acts until revoked as provided in Sec. 
601.526. The exceptions to the requirements for a power of attorney 
contained in paragraph (c) (3)

[[Page 109]]

and (4) of Sec. 601.502 are applicable to powers of attorney under this 
section.

[34 FR 14603, Sept. 19, 1969, as amended at 45 FR 7259, Feb. 1, 1980]



Sec. 601.523  Tax information authorization.

    Where any of the acts specified in paragraph (c)(2)(i) of Sec. 
601.502 are to be performed by a representative, and a power of attorney 
for such representative has not been filed, a tax information 
authorization, or copy thereof, will be required. The authorization may 
be executed on Form 1534-A, copies of which may be obtained from the 
regional regulatory administrator in the Bureau of Alcohol, Tobacco, and 
Firearms. Such authorization may cover one or more of the acts for which 
a tax information authorization is required and will continue in effect 
with respect to such acts until revoked as provided in Sec. 601.526. 
The exceptions to the requirements for a tax information authorization, 
provided in paragraphs (c) (3) and (4) of Sec. 601.502, are applicable 
to such authorizations under this section.

[34 FR 6432, Apr. 12, 1969]



Sec. 601.524  Execution and filing powers of attorney and tax information 
authorizations.

    (a) Time of filing. A copy of the power of attorney must be filed in 
each office (that is, office of a regional regulatory administrator and 
Office of the Director, Bureau of Alcohol, Tobacco, and Firearms), in 
which a document specified in Sec. 601.522, covered by the power of 
attorney, is required to be filed, or in which the representative 
desires to perform one or more of the acts enumerated in paragraph 
(c)(1) of Sec. 601.502. If a power of attorney covering an act 
otherwise requiring the filing of a tax information authorization has 
not been filed, a copy of the tax information authorization must be 
filed in each office in which the representative inspects or receives 
confidential information, or, where acts requiring a power of attorney 
or a tax information authorization are handled by correspondence, the 
representative should enclose a copy of the power or authorization with 
the initial correspondence. However, where a power of attorney or tax 
information authorization is on file with the regional regulatory 
administrator in the Bureau of Alcohol, Tobacco, and Firearms, an 
additional copy thereof will not be required in the office of the 
regional counsel of the same region.
    (b) Execution. The power of attorney required by Sec. 601.522, or 
tax information authorization required by Sec. 601.523, shall be 
executed in the manner prescribed in paragraph (b) of Sec. 601.504; 
shall indicate all acts to which it relates; should contain the mailing 
address of the representative; and, if more than one representative is 
authorized to perform the same acts on behalf of the industry member or 
other person, a designation as to which representative is to receive 
notices and other written communications. For rules relating to the 
mailing of notices or other written communications to a representative, 
see Sec. 601.506.
    (c) Attestation and corporate seal. In the case of a corporation, a 
power of attorney filed with an officer of the Bureau of Alcohol, 
Tobacco, and Firearms must be attested by the secretary and the 
corporate seal must be affixed. If the officer who signs the power of 
attorney is also the secretary, another officer of the corporation, 
preferably the president, vice president, or treasurer, must also sign 
the power of attorney so that two different individuals' signatures 
appear thereon. If the corporation has no seal, a certified copy of a 
resolution duly passed on by the board of directors of the corporation 
authorizing the execution of powers of attorney should be attached.
    (d) Acknowledgment. A power of attorney filed with an office of the 
Bureau of Alcohol, Tobacco, and Firearms must be acknowledged, 
witnessed, or certified as provided in paragraph (d) of Sec. 601.504.

[32 FR 15990, Nov. 22, 1967, as amended at 34 FR 6432, Apr. 12, 1969; 45 
FR 7259, Feb. 1, 1980]



Sec. 601.525  Certification of copies of documents.

    The provisions of paragraph (e) of Sec. 601.504 with respect to 
certification of copies are applicable to a power of attorney or a tax 
information authorization required to be filed under Sec. 601.522 or 
Sec. 601.523.

[[Page 110]]



Sec. 601.526  Revocation of powers of attorney and tax information 
authorizations.

    The revocation of the authority of a representative covered by a 
power of attorney or tax information authorization filed in an office of 
the Bureau of Alcohol, Tobacco, and Firearms shall in no case be 
effective prior to the giving of written notice to the proper official 
that the authority of such representative has been revoked.

[34 FR 6432, Apr. 12, 1969, as amended at 45 FR 7259, Feb. 1, 1980]



Sec. 601.527  Other provisions applied to representation in alcohol, 
tobacco, and firearms activities.

    The provisions of paragraph (b) of Sec. 601.505, and of Sec. Sec. 
601.506 through 601.508 of this subpart, as applicable, shall be 
followed in offices of the Bureau of Alcohol, Tobacco, and Firearms.

[34 FR 6433, Apr. 12, 1969, as amended at 34 FR 14604, Sept. 19, 1969; 
45 FR 7259, Feb. 1, 1980]



                 Subpart F_Rules, Regulations, and Forms



Sec. 601.601  Rules and regulations.

    (a) Formulation. (1) Internal revenue rules take various forms. The 
most important rules are issued as regulations and Treasury decisions 
prescribed by the Commissioner and approved by the Secretary or his 
delegate. Other rules may be issued over the signature of the 
Commissioner or the signature of any other official to whom authority 
has been delegated. Regulations and Treasury decisions are prepared in 
the Office of the Chief Counsel. After approval by the Commissioner, 
regulations and Treasury decisions are forwarded to the Secretary or his 
delegate for further consideration and final approval.
    (2) Where required by 5 U.S.C. 553 and in such other instances as 
may be desirable, the Commissioner publishes in the Federal Register 
general notice of proposed rules (unless all persons subject thereto are 
named and either personally served or otherwise have actual notice 
thereof in accordance with law). This notice includes:
    (i) A statement of the time, place, and nature of public rulemaking 
proceedings;
    (ii) Reference to the authority under which the rule is proposed.
    (iii) Either the terms or substance of the proposed rule or a 
description of the subjects and issues involved.
    (3)(i) This subparagraph shall apply where the rules of this 
subparagraph are incorporated by reference in a notice of hearing with 
respect to a notice of proposed rule making.
    (ii) A person wishing to make oral comments at a public hearing to 
which this subparagraph applies shall file his written comments within 
the time prescribed by the notice of proposed rule making (including any 
extensions thereof) and submit the outline referred to in subdivision 
(iii) of this subparagraph within the time prescribed by the notice of 
hearing. In lieu of the reading of a prepared statement at the hearing, 
such person's oral comments shall ordinarily be limited to a discussion 
of matters relating to such written comments and to questions and 
answers in connection therewith. However, the oral comments shall not be 
merely a restatement of matters the person has submitted in writing. 
Persons making oral comments should be prepared to answer questions not 
only on the topics listed in his outline but also in connection with the 
matters relating to his written comments. Except as provided in 
paragraph (b) of this section, in order to be assured of the 
availability of copies of such written comments or outlines on or before 
the beginning of such hearing, any person who desires such copies should 
make such a request within the time prescribed in the notice of hearing 
and shall agree to pay reasonable costs for coping. Persons who make 
such a request after the time prescribed in the notice of hearing will 
be furnished copies as soon as they are available, but it may not be 
possible to furnish the copies on or before the beginning of the 
hearing. Except as provided in the preceding sentences, copies of 
written comments regarding the rules proposed shall not be made 
available at the hearing.
    (iii) A person who wishes to be assured of being heard shall submit,

[[Page 111]]

within the time prescribed in the notice of hearing, an outline of the 
topics he or she wishes to discuss, and the time he or she wishes to 
devote to each topic. An agenda will then be prepared containing the 
order of presentation of oral comments and the time allotted to such 
presentation. A period of 10 minutes will be the time allotted to each 
person for making his or her oral comments.
    (iv) At the conclusion of the presentations of comments of persons 
listed in the agenda, to the extent time permits, other persons may be 
permitted to present oral comments provided they have notified, either 
the Commissioner of Internal Revenue (Attention: CC:LR:T) before the 
hearing, or the representative of the Internal Revenue Service stationed 
at the entrance to the hearing room at or before commencement of the 
hearing, of their desire to be heard.
    (v) In the case of unusual circumstances or for good cause shown, 
the application of rules contained in this subparagraph, including the 
10-minute rule in subdivision (iii), above, may be waived.
    (vi) To the extent resources permit, the public hearings to which 
this subparagraph applies may be transcribed.
    (b) Comments on proposed rules--(1) In general. Interested persons 
are privileged to submit any data, views, or arguments in response to a 
notice of proposed rule making published pursuant to 5 U.S.C. 553. 
Further, procedures are provided in paragraph (d)(9) of Sec. 601.702 
for members of the public to inspect and to obtain copies of written 
comments submitted in response to such notices. Designations of material 
as confidential or not to be disclosed, contained in such comments, will 
not be accepted. Thus, a person submitting written comments in response 
to a notice of proposed rule making should not include therein material 
that he considers to be confidential or inappropriate for disclosure to 
the public. It will be presumed by the Internal Revenue Service that 
every written comment submitted to it in response to a notice of 
proposed rule making is intended by the person submitting it to be 
subject in its entirety to public inspection and copying in accordance 
with the procedures of paragraph (d)(9) of Sec. 601.702. The name of 
any person requesting a public hearing and hearing outlines described in 
paragraph (a)(3)(iii) of this section are not exempt from disclosure.
    (2) Effective date. This paragraph (b) applies only to comments 
submitted in response to notices of proposed rule making of the Internal 
Revenue Service published in the Federal Register after June 5, 1974.
    (c) Petition to change rules. Interested persons are privileged to 
petition for the issuance, amendment, or repeal of a rule. A petition 
for the issuance of a rule should identify the section or sections of 
law involved; and a petition for the amendment or repeal of a rule 
should set forth the section or sections of the regulations involved. 
The petition should also set forth the reasons for the requested action. 
Such petitions will be given careful consideration and the petitioner 
will be advised of the action taken thereon. Petitions should be 
addressed to the Commissioner of Internal Revenue, Attention: CC:LR:T, 
Washington, DC 20224. However, in the case of petitions to amend the 
regulations pursuant to subsection (c)(4)(A)(viii) or (5)(A)(i) of 
section 23 or former section 44C, follow the procedure outlined in 
paragraph (a) of Sec. 1.23-6.
    (d) Publication of rules and regulations--(1) General. All Internal 
Revenue Regulations and Treasury decisions are published in the Federal 
Register and in the Code of Federal Regulations. See paragraph (a) of 
Sec. 601.702. The Treasury decisions are also published in the weekly 
Internal Revenue Bulletin and the semiannual Cumulative Bulletin. The 
Internal Revenue Bulletin is the authoritative instrument of the 
Commissioner for the announcement of official rulings, decisions, 
opinions, and procedures, and for the publication of Treasury decisions, 
Executive orders, tax conventions, legislation, court decisions, and 
other items pertaining to internal revenue matters. It is the policy of 
the Internal Revenue Service to publish in the Bulletin all substantive 
and procedural rulings of importance or general interest, the

[[Page 112]]

publication of which is considered necessary to promote a uniform 
application of the laws administered by the Service. Procedures set 
forth in Revenue Procedures published in the Bulletin which are of 
general applicability and which have continuing force and effect are 
incorporated as amendments to the Statement of Procedural Rules. It is 
also the policy to publish in the Bulletin all rulings which revoke, 
modify, amend, or affect any published ruling. Rules relating solely to 
matters of internal practices and procedures are not published; however, 
statements of internal practices and procedures affecting rights or 
duties of taxpayers, or industry regulation, which appear in internal 
management documents, are published in the Bulletin. No unpublished 
ruling or decision will be relied on, used, or cited by any officer or 
employee of the Internal Revenue Service as a precedent in the 
disposition of other cases.
    (2) Objectives and standards for publication of Revenue Rulings and 
Revenue Procedures in the Internal Revenue Bulletin--(i)(a) A Revenue 
Ruling is an official interpretation by the Service that has been 
published in the Internal Revenue Bulletin. Revenue Rulings are issued 
only by the National Office and are published for the information and 
guidance of taxpayers, Internal Revenue Service officials, and others 
concerned.
    (b) A Revenue Procedure is a statement of procedure that affects the 
rights or duties of taxpayers or other members of the public under the 
Code and related statutes or information that, although not necessarily 
affecting the rights and duties of the public, should be a matter of 
public knowledge.
    (ii) (a) The Internal Revenue Bulletin is the authoritative 
instrument of the Commissioner of Internal Revenue for the publication 
of official rulings and procedures of the Internal Revenue Service, 
including all rulings and statements of procedure which supersede, 
revoke, modify, amend, or affect any previously published ruling or 
procedure. The Service also announces in the Bulletin the Commissioner's 
acquiescences and nonacquiescences in decisions of the U.S. Tax Court 
(other than decisions in memorandum opinions), and publishes Treasury 
decisions, Executive orders, tax conventions, legislation, court 
decisions, and other items considered to be of general interest. The 
Assistant Commissioner (Technical) administers the Bulletin program.
    (b) The Bulletin is published weekly. In order to provide a 
permanent reference source, the contents of the Bulletin are 
consolidated semiannually into an indexed Cumulative Bulletin. The 
Bulletin Index-Digest System provides a research and reference guide to 
matters appearing in the Cumulative Bulletins. These materials are sold 
by the Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402.
    (iii) The purpose of publishing revenue rulings and revenue 
procedures in the Internal Revenue Bulletin is to promote correct and 
uniform application of the tax laws by Internal Revenue Service 
employees and to assist taxpayers in attaining maximum voluntary 
compliance by informing Service personnel and the public of National 
Office interpretations of the internal revenue laws, related statutes, 
treaties, regulations, and statements of Service procedures affecting 
the rights and duties of taxpayers. Therefore, issues and answers 
involving substantive tax law under the jurisdiction of the Internal 
Revenue Service will be published in the Internal Revenue Bulletin, 
except those involving:
    (a) Issues answered by statute, treaty, or regulations;
    (b) Issues answered by rulings, opinions, or court decisions 
previously published in the Bulletin;
    (c) Issues that are of insufficient importance or interest to 
warrant publication;
    (d) Determinations of fact rather than interpretations of law;
    (e) Informers and informers' rewards; or
    (f) Disclosure of secret formulas, processes, business practices, 
and similar information.

Procedures affecting taxpayers' rights or duties that relate to matters 
under the jurisdiction of the Service will be published in the Bulletin.
    (iv) [Reserved]

[[Page 113]]

    (v) (a) Rulings and other communications involving substantive tax 
law published in the Bulletin are published in the form of Revenue 
Rulings. The conclusions expressed in Revenue Rulings will be directly 
responsive to and limited in scope by the pivotal facts stated in the 
revenue ruling. Revenue Rulings arise from various sources, including 
rulings to taxpayers, technical advice to district offices, studies 
undertaken by the Office of the Assistant Commissioner (Technical), 
court decisions, suggestions from tax practitioner groups, publications, 
etc.
    (b) It will be the practice of the Service to publish as much of the 
ruling or communication as is necessary for an understanding of the 
position stated. However, in order to prevent unwarranted invasions of 
personal privacy and to comply with statutory provisions, such as 18 
U.S.C. 1905 and 26 U.S.C. 7213, dealing with disclosure of information 
obtained from members of the public, identifying details, including the 
names and addresses of persons involved, and information of a 
confidential nature are deleted from the ruling.
    (c) Revenue Rulings, other than those relating to the qualification 
of pension, annuity, profit-sharing, stock bonus, and bond purchase 
plans, apply retroactively unless the Revenue Ruling includes a specific 
statement indicating, under the authority of section 7805(b) of the 
Internal Revenue Code of 1954, the extent to which it is to be applied 
without retroactive effect. Where Revenue Rulings revoke or modify 
rulings previously published in the Bulletin the authority of section 
7805(b) of the Code ordinarily is invoked to provide that the new 
rulings will not be applied retroactively to the extent that the new 
rulings have adverse tax consequences to taxpayers. Section 7805(b) of 
the Code provides that the Secretary of the Treasury or his delegate may 
prescribe the extent to which any ruling is to be applied without 
retroactive effect. The exercise of this authority requires an 
affirmative action. For the effect of Revenue Rulings on determination 
letters and opinion letters issued with respect to the qualification of 
pension, annuity, profit-sharing, stock bonus, and bond purchase plans, 
see paragraph (o) of Sec. 601.201.
    (d) Revenue Rulings published in the Bulletin do not have the force 
and effect of Treasury Department Regulations (including Treasury 
decisions), but are published to provide precedents to be used in the 
disposition of other cases, and may be cited and relied upon for that 
purpose. No unpublished ruling or decision will be relied on, used, or 
cited, by any officer or employee of the Service as a precedent in the 
disposition of other cases.
    (e) Taxpayers generally may rely upon Revenue Rulings published in 
the Bulletin in determining the tax treatment of their own transactions 
and need not request specific rulings applying the principles of a 
published Revenue Ruling to the facts of their particular cases. 
However, since each Revenue Ruling represents the conclusion of the 
Service as to the application of the law to the entire state of facts 
involved, taxpayers, Service personnel, and others concerned are 
cautioned against reaching the same conclusion in other cases unless the 
facts and circumstances are substantially the same. They should consider 
the effect of subsequent legislation, regulations, court decisions, and 
revenue rulings.
    (f) Comments and suggestions from taxpayers or taxpayer groups on 
Revenue Rulings being prepared for publication in the Bulletin may be 
solicited, if justified by special circumstances. Conferences on Revenue 
Rulings being prepared for publication will not be granted except where 
the Service determines that such action is justified by special 
circumstances.
    (vi) Statements of procedures which affect the rights or duties of 
taxpayers or other members of the public under the Code and related 
statutes will be published in the Bulletin in the form of Revenue 
Procedures. Revenue Procedures usually reflect the contents of internal 
management documents, but, where appropriate, they are also published to 
announce practices and procedures for guidance of the public. It is 
Service practice to publish as much of the internal management document 
or communication as is necessary for an understanding of the procedure. 
Revenue Procedures may also be based on

[[Page 114]]

internal management documents which should be a matter of public 
knowledge even though not necessarily affecting the rights or duties of 
the public. When publication of the substance of a Revenue Procedure in 
the Federal Register is required pursuant to 5 U.S.C. 552, it will 
usually be accomplished by an amendment of the Statement of procedural 
Rules (26 CFR Part 601).
    (vii) (a) The Assistant Commissioner (Technical) is responsible for 
administering the system for the publication of Revenue Rulings and 
Revenue Procedures in the Bulletin, including the standards for style 
and format.
    (b) In accordance with the standards set forth in subdivision (iv) 
of this subparagraph, each Assistant Commissioner is responsible for the 
preparation and appropriate referral for publication of Revenue Rulings 
reflecting interpretations of substantive tax law made by his office and 
communicated in writing to taxpayers or field offices. In this 
connection, the Chief Counsel is responsible for the referral to the 
appropriate Assistant Commissioner, for consideration for publication as 
Revenue Rulings, of interpretations of substantive tax law made by his 
Office.
    (c) In accordance with the standards set forth in subdivision (iv) 
of this subparagraph, each Assistant Commissioner and the Chief Counsel 
is responsible for determining whether procedures established by any 
office under his jurisdiction should be published as Revenue Procedures 
and for the initiation, content, and appropriate referral for 
publication of such Revenue Procedures.
    (e) Foreign tax law. (1) The Service will accept the interpretation 
placed by a foreign tax convention country on its revenue laws which do 
not affect the tax convention. However, when such interpretation 
conflicts with a provision in the tax convention, reconsideration of 
that interpretation may be requested.
    (2) Conferences in the National Office of the Service will be 
granted to representatives of American firms doing business abroad and 
of American citizens residing abroad, in order to discuss with them 
foreign tax matters with respect to those countries with which we have 
tax treaties in effect.

[32 FR 15990, Nov. 22, 1967, as amended at 33 FR 6826, May 4, 1968; 35 
FR 16593, Oct. 24, 1970; 38 FR 4971, Feb. 23, 1973; 39 FR 15755, May 6, 
1974; 41 FR 13611, Mar. 31, 1976; 41 FR 20883, May 21, 1976; 43 FR 
17821, Apr. 26, 1978; 47 FR 56333, Dec. 16, 1982; 48 FR 15624, Apr. 12, 
1983; 52 FR 26673, July 16, 1987]



Sec. 601.602  Tax forms and instructions.

    (a) Tax return forms and instructions. The Internal Revenue Service 
develops forms and instructions that explain the requirements of the 
Internal Revenue Code and regulations. The Service distributes the forms 
and instructions to help taxpayers comply with the law. The tax system 
is based on voluntary compliance, and the taxpayers complete and return 
the forms with payment of any tax owed.
    (b) Other forms and instructions. In addition to tax return forms, 
the Internal Revenue Service furnishes the public copies of other forms 
and instructions developed for use in complying with the laws and 
regulations. These forms and instructions lead the taxpayer step-by-step 
through data needed to accurately report information required by law.
    (c) Where to get forms and instructions. The Internal Revenue 
Service mails tax return forms to taxpayers who have previously filed 
returns. However, taxpayers can call or write to district directors or 
directors of service centers for copies of any forms they need. These 
forms are described in Publication 676, Catalog of Federal Tax Forms, 
Form Letters, and Notices, which the public can buy from the 
Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402.

[46 FR 26055, May 11, 1981]



                        Subpart G_Records (Note)

    Note: The regulations in Subpart G of 26 CFR Part 601 are superseded 
in part by 27 CFR Part 71 to the extent that it applied to alcohol, 
tobacco, firearms, and explosives records, formerly administered by the 
Internal Revenue Service and transferred to the Bureau of Alcohol, 
Tobacco and Firearms. (See 37 FR 13691, July 13, 1972.)

[[Page 115]]



Sec. 601.702  Publication, public inspection, and specific requests for 
records.

    (a) Publication in the Federal Register--(1) Requirement. (i) 
Subject to the application of the exemptions and exclusions described in 
the Freedom of Information Act, 5 U.S.C. 552(b) and (c), and subject to 
the limitations provided in paragraph (a)(2) of this section, the IRS is 
required under 5 U.S.C. 552(a)(1), to state separately and publish 
currently in the Federal Register for the guidance of the public the 
following information--
    (A) Descriptions of its central and field organization and the 
established places at which, the persons from whom, and the methods 
whereby, the public may obtain information, make submittals or requests, 
or obtain decisions, from the IRS;
    (B) Statement of the general course and method by which its 
functions are channeled and determined, including the nature and 
requirements of all formal and informal procedures which are available;
    (C) Rules of procedure, descriptions of forms available or the 
places at which forms may be obtained, and instructions as to the scope 
and contents of all papers, reports, or examinations;
    (D) Substantive rules of general applicability adopted as authorized 
by law, and statements of general policy or interpretations of general 
applicability formulated and adopted by the IRS; and
    (E) Each amendment, revision, or repeal of matters referred to in 
paragraphs (a)(1)(i)(A) through (D) of this section.
    (ii) Pursuant to the foregoing requirements, the Commissioner 
publishes in the Federal Register from time to time a statement, which 
is not codified in this chapter, on the organization and functions of 
the IRS, and such amendments as are needed to keep the statement on a 
current basis. In addition, there are published in the Federal Register 
the rules set forth in this part 601 (Statement of Procedural Rules), 
such as those in paragraph E of this section, relating to conference and 
practice requirements of the IRS; the regulations in part 301 of this 
chapter (Procedure and Administration Regulations); and the various 
substantive regulations under the Internal Revenue Code of 1986, such as 
the regulations in part 1 of this chapter (Income Tax Regulations), in 
part 20 of this chapter (Estate Tax Regulations), and in part 31 of this 
chapter (Employment Tax Regulations).
    (2) Limitations--(i) Incorporation by reference in the Federal 
Register. Matter which is reasonably available to the class of persons 
affected thereby, whether in a private or public publication, shall be 
deemed published in the Federal Register for purposes of paragraph 
(a)(1) of this section when it is incorporated by reference therein with 
the approval of the Director of the Office of the Federal Register. The 
matter which is incorporated by reference must be set forth in the 
private or public publication substantially in its entirety and not 
merely summarized or printed as a synopsis. Matter, the location and 
scope of which are familiar to only a few persons having a special 
working knowledge of the activities of the IRS, may not be incorporated 
in the Federal Register by reference. Matter may be incorporated by 
reference in the Federal Register only pursuant to the provisions of 5 
U.S.C. 552(a)(1) and 1 CFR part 20.
    (ii) Effect of failure to publish. Except to the extent that a 
person has actual and timely notice of the terms of any matter referred 
to in paragraph (a)(1) of this section which is required to be published 
in the Federal Register, such person is not required in any manner to 
resort to, or be adversely affected by, such matter if it is not so 
published or is not incorporated by reference therein pursuant to 
paragraph (a)(2)(i) of this section. Thus, for example, any such matter 
which imposes an obligation and which is not so published or 
incorporated by reference shall not adversely change or affect a 
person's rights.
    (b) Public inspection and copying--(1) In general. (i) Subject to 
the application of the exemptions described in 5 U.S.C. 552(b) and the 
exclusions described in 5 U.S.C. 552(c), the IRS is required under 5 
U.S.C. 552(a)(2) to make available for public inspection and copying or, 
in the alternative, to

[[Page 116]]

promptly publish and offer for sale the following information:
    (A) Final opinions, including concurring and dissenting opinions, 
and orders, if such opinions and orders are made in the adjudication of 
cases;
    (B) Those statements of policy and interpretations which have been 
adopted by the IRS but are not published in the Federal Register;
    (C) Its administrative staff manuals and instructions to staff that 
affect a member of the public; and
    (D) Copies of all records, regardless of form or format, which have 
been released to any person under 5 U.S.C. 552(a)(3) and which, because 
of the nature of their subject matter, the IRS determines have become or 
are likely to become the subject of subsequent requests for 
substantially the same records. The determination that records have 
become or may become the subject of subsequent requests shall be based 
on the following criteria:
    (1) The subject matter is clearly of interest to the public at large 
or to special interest groups from which more than one request is 
expected to be received; or
    (2) When more than four requests for substantially the same records 
have already been received.
    (ii) The IRS is also required by 5 U.S.C. 552(a)(2) to maintain and 
make available for public inspection and copying current indexes 
identifying any matter described in paragraphs (b)(1)(i)(A) through (C) 
of this section which is issued, adopted, or promulgated after July 4, 
1967, and which is required to be made available for public inspection 
or published. In addition, the IRS shall also promptly publish, 
quarterly or more frequently, and distribute (by sale or otherwise) 
copies of each index or supplements thereto unless it determines by 
order published in the Federal Register that the publication would be 
unnecessary and impracticable, in which case the IRS shall nonetheless 
provide copies of such indexes on request at a cost not to exceed the 
direct cost of duplication. No matter described in paragraphs 
(b)(1)(i)(A) through (C) of this section which is required by this 
section to be made available for public inspection or published may be 
relied upon, used, or cited as precedent by the IRS against a party 
other than an agency unless such party has actual and timely notice of 
the terms of such matter or unless the matter has been indexed and 
either made available for inspection or published, as provided by this 
paragraph (b). This paragraph (b) applies only to matters which have 
precedential significance. It does not apply, for example, to any ruling 
or advisory interpretation issued to a taxpayer or to a particular 
transaction or set of facts which applies only to that transaction or 
set of facts. Rulings, determination letters, technical advice 
memorandums, and Chief Counsel advice are open to public inspection and 
copying pursuant to 26 U.S.C. 6110. This paragraph (b) does not apply to 
matters which have been made available pursuant to paragraph (a) of this 
section.
    (iii) For records required to be made available for public 
inspection and copying pursuant to 5 U.S.C. 552(a)(2) and paragraphs 
(b)(1)(i)(A) through (D) of this section, which are created on or after 
November 1, 1996, the IRS shall make such records available on the 
Internet within one year after such records are created.
    (iv) The IRS shall make the index referred to in paragraph 
(b)(1)(ii) of this section available on the Internet.
    (2) Deletion of identifying details. To prevent a clearly 
unwarranted invasion of personal privacy, the IRS shall, in accordance 
with 5 U.S.C. 552(a)(2), delete identifying details contained in any 
matter described in paragraphs (b)(1)(i)(A) through (D) of this section 
before making such matter available for inspection or publication. Such 
matters shall also be subject to any applicable exemption set forth in 5 
U.S.C. 552(b). In every case where identifying details or other matters 
are so deleted, the justification for the deletion shall be explained in 
writing. The extent of such deletion shall be indicated on the portion 
of the record which is made available or published, unless including 
that indication would harm an interest protected by the exemption in 5 
U.S.C. 552(b) under which the deletion is made. If technically feasible, 
the extent of the deletion shall be indicated at the place in the record 
where the deletion was made.

[[Page 117]]

    (3) Freedom of Information Reading Room--(i) In general. The 
Headquarters Disclosure Office of the IRS shall provide a reading room 
where the matters described in paragraphs (b)(1)(i)(A) through (D) of 
this section which are required to be made available for public 
inspection, and the current indexes to such matters, shall be made 
available to the public for inspection and copying. The Freedom of 
Information Reading Room shall contain other matters determined to be 
helpful for the guidance of the public, including a complete set of 
rules and regulations (except those pertaining to alcohol, tobacco, 
firearms, and explosives) contained in this title, any Internal Revenue 
matters which may be incorporated by reference in the Federal Register 
(but not a copy of the Federal Register so doing) pursuant to paragraph 
(a)(2)(i) of this section, a set of Cumulative Bulletins, and copies of 
various IRS publications. The public shall not be allowed to remove any 
record from the Freedom of Information Reading Room.
    (ii) Location of Freedom of Information Reading Room. The location 
of the Headquarters Disclosure Office Freedom of Information Reading 
Room is: IRS, 1111 Constitution Avenue, NW., Room 1621, Washington, DC.
    (iii) Copying facilities. The Headquarters Disclosure Office shall 
provide facilities whereby a person may obtain copies of material 
located on the shelves of the Freedom of Information Reading Room.
    (c) Specific requests for other records--(1) In general. (i) Subject 
to the application of the exemptions described in 5 U.S.C. 552(b) and 
the exclusions described in 5 U.S.C. 552(c), the IRS shall, in 
conformance with 5 U.S.C. 552(a)(3), make reasonably described records 
available to a person making a request for such records which conforms 
in every respect with the rules and procedures set forth in this 
section. Any request or any appeal from the initial denial of a request 
that does not comply with the requirements set forth in this section 
shall not be considered subject to the time constraints of paragraphs 
(c)(9), (10), and (11) of this section, unless and until the request or 
appeal is amended to comply. The IRS shall promptly advise the requester 
in what respect the request or appeal is deficient so that it may be 
resubmitted or amended for consideration in accordance with this 
section. If a requester does not resubmit a perfected request or appeal 
within 35 days from the date of a communication from the IRS, the 
request or appeal file shall be closed. When the resubmitted request or 
appeal conforms with the requirements of this section, the time 
constraints of paragraphs (c)(9), (10), and (11) of this section shall 
begin.
    (ii) Requests for the continuing production of records created or 
for records created after the date of receipt of the request shall not 
be honored.
    (iii) Specific requests under paragraph (a)(3) for material 
described in paragraph (a)(2)(A)through(C) and which is in the Freedom 
of Information Reading Room shall not be honored.
    (2) Electronic format records. (i) The IRS shall provide the 
responsive record or records in the form or format requested if the 
record or records are readily reproducible by the IRS in that form or 
format. The IRS shall make reasonable efforts to maintain its records in 
forms or formats that are reproducible for the purpose of disclosure. 
For purposes of this paragraph, the term readily reproducible means, 
with respect to electronic format, a record or records that can be 
downloaded or transferred intact to a floppy disk, computer disk (CD), 
tape, or other electronic medium using equipment currently in use by the 
office or offices processing the request. Even though some records may 
initially be readily reproducible, the need to segregate exempt from 
nonexempt records may cause the releasable material to be not readily 
reproducible.
    (ii) In responding to a request for records, the IRS shall make 
reasonable efforts to search for the records in electronic form or 
format, except where such efforts would significantly interfere with the 
operation of the agency's automated information system(s). For purposes 
of this paragraph (c), the term search means to locate, manually or by 
automated means, agency records for the purpose of identifying those

[[Page 118]]

records which are responsive to a request.
    (iii) Searches for records maintained in electronic form or format 
may require the application of codes, queries, or other minor forms of 
programming to retrieve the requested records.
    (3) Requests for records not in control of the IRS. (i) Where the 
request is for a record which is determined to be in the possession or 
under the control of a constituent unit of the Department of the 
Treasury other than the IRS, the request for such record shall 
immediately be transferred to the appropriate constituent unit and the 
requester notified to that effect. Such referral shall not be deemed a 
denial of access within the meaning of these regulations. The 
constituent unit of the Department to which such referral is made shall 
treat such request as a new request addressed to it and the time limits 
for response set forth in paragraphs (c)(9) and (c)(10) of this section 
shall commence when the referral is received by the designated office or 
officer of the constituent unit. Where the request is for a record which 
is of a type that is not maintained by any constituent unit of the 
Department of the Treasury, the requester shall be so advised.
    (ii) Where the record requested was created by another agency or 
constituent unit of the Department of the Treasury and a copy thereof is 
in the possession of the IRS, the IRS official to whom the request is 
delivered shall refer the request to the agency or constituent unit 
which originated the record for direct reply to the requester. The 
requester shall be informed of such referral. This referral shall not be 
considered a denial of access within the meaning of these regulations. 
Where the record is determined to be exempt from disclosure under 5 
U.S.C. 552, the referral need not be made, but the IRS shall inform the 
originating agency or constituent unit of its determination. Where 
notifying the requester of its referral may cause a harm to the 
originating agency or constituent unit which would enable the 
originating agency or constituent unit to withhold the record under 5 
U.S.C. 552, then such referral need not be made. In both of these 
circumstances, the IRS official to whom the request is delivered shall 
process the request in accordance with the procedures set forth in this 
section.
    (iii) When a request is received for a record created by the IRS 
(i.e., in its possession and control) that includes information 
originated by another agency or constituent unit of the Department of 
the Treasury, the record shall be referred to the originating agency or 
constituent unit for review, coordination, and concurrence prior to 
being released to a requester. The IRS official to whom the request is 
delivered may withhold the record without prior consultation with the 
originating agency or constituent unit.
    (4) Form of request. (i) Requesters are advised that only requests 
for records which fully comply with the requirements of this section can 
be processed in accordance with this section. Requesters shall be 
notified promptly in writing of any requirements which have not been met 
or any additional requirements to be met. Every effort shall be made to 
comply with the requests as written. The initial request for records 
must--
    (A) Be made in writing and signed by the individual making the 
request;
    (B) State that it is made pursuant to the Freedom of Information 
Act, 5 U.S.C. 552, or regulations thereunder;
    (C) Be addressed to and mailed to the office of the IRS official who 
is responsible for the control of the records requested (see paragraph 
(h) of this section for the responsible officials and their addresses), 
regardless of where such records are maintained. Generally, requests for 
records pertaining to the requester, or other matters of local interest, 
should be directed to the office servicing the requester's geographic 
area of residence. Requests for records maintained in the Headquarters 
of the IRS and its National Office of Chief Counsel, concerning matters 
of nationwide applicability, such as published guidance (regulations and 
revenue rulings), program management, operations, or policies, should be 
directed to the Headquarters Disclosure Office. If the person making the 
request does not know the official responsible for the control of the 
records being requested, the person making the request may contact, by 
telephone or

[[Page 119]]

in writing, the disclosure office servicing the requester's geographic 
area of residence to ascertain the identity of the official having 
control of the records being requested so that the request can be 
addressed, and delivered, to the appropriate responsible official. 
Misdirected requests that otherwise satisfy the requirements of this 
section shall be immediately transferred to the appropriate responsible 
IRS official and the requester notified to that effect. Such transfer 
shall not be deemed a denial of access within the meaning of these 
regulations. The IRS official to whom the request is redirected shall 
treat such request as a new request addressed to it and the time limits 
for response set forth in paragraphs (c)(9) and (c)(11) of this section 
shall commence when the transfer is received by the designated office;
    (D) Reasonably describe the records in accordance with paragraph 
(c)(5)(i) of this section;
    (E) In the case of a request for records the disclosure of which is 
limited by statute or regulations (as, for example, the Privacy Act of 
1974 (5 U.S.C. 552a) or section 6103 and the regulations thereunder), 
establish the identity and the right of the person making the request to 
the disclosure of the records in accordance with paragraph (c)(5)(iii) 
of this section;
    (F) Set forth the address where the person making the request 
desires to be notified of the determination as to whether the request 
shall be granted;
    (G) State whether the requester wishes to inspect the records or 
desires to have a copy made and furnished without first inspecting them;
    (H) State the firm agreement of the requester to pay the fees for 
search, duplication, and review ultimately determined in accordance with 
paragraph (f) of this section, or, in accordance with paragraph 
(c)(4)(ii) of this section, place an upper limit for such fees that the 
requester is willing to pay, or request that such fees be reduced or 
waived and state the justification for such request; and
    (I) Identify the category of the requester and, with the exception 
of ``other requesters,'' state how the records shall be used, as 
required by paragraph (f)(3) of this section.
    (ii) As provided in paragraph (c)(4)(i)(H) of this section, rather 
than stating a firm agreement to pay the fee ultimately determined in 
accordance with paragraph (f) of this section or requesting that such 
fees be reduced or waived, the requester may place an upper limit on the 
amount the requester agrees to pay. If the requester chooses to place an 
upper limit and the estimated fee is deemed to be greater than the upper 
limit, or where the requester asks for an estimate of the fee to be 
charged, the requester shall be promptly advised of the estimate of the 
fee and asked to agree to pay such amount. Where the initial request 
includes a request for reduction or waiver of the fee, the IRS officials 
responsible for the control of the requested records (or their 
delegates) shall determine whether to grant the request for reduction or 
waiver in accordance with paragraph (f) of this section and notify the 
requester of their decisions and, if their decisions result in the 
requester being liable for all or part of the fee normally due, ask the 
requester to agree to pay the amount so determined. The requirements of 
this paragraph shall not be deemed met until the requester has 
explicitly agreed to pay the fee applicable to the request for records, 
if any, or has made payment in advance of the fee estimated to be due. 
If the requester has any outstanding balance of search, review, or 
duplication fees, the requirements of this paragraph shall not be deemed 
met until the requester has remitted the outstanding balance due.
    (5) Reasonable description of records; identity and right of the 
requester. (i) The request for records must describe the records in 
reasonably sufficient detail to enable the IRS employees who are 
familiar with the subject matter of the request to locate the records 
without placing an unreasonable burden upon the IRS. While no specific 
formula for a reasonable description of a record can be established, the 
requirement shall generally be satisfied if the requester gives the 
name, taxpayer identification number (e.g., social security number or 
employer identification number), subject matter, location, and years at 
issue, of the requested records. If the request seeks records pertaining 
to

[[Page 120]]

pending litigation, the request shall indicate the title of the case, 
the court in which the case was filed, and the nature of the case. It is 
suggested that the person making the request furnish any additional 
information which shall more clearly identify the requested records. 
Where the requester does not reasonably describe the records being 
sought, the requester shall be afforded an opportunity to refine the 
request. Such opportunity may involve a conference with knowledgeable 
IRS personnel at the discretion of the disclosure officer. The 
reasonable description requirement shall not be used by officers or 
employees of the Internal Revenue as a device for improperly withholding 
records from the public.
    (ii) The IRS shall make a reasonable effort to comply fully with all 
requests for access to records subject only to any applicable exemption 
set forth in 5 U.S.C. 552(b) or any exclusion described in 5 U.S.C. 
552(c). In any situation in which it is determined that a request for 
voluminous records would unduly burden and interfere with the operations 
of the IRS, the person making the request shall be asked to be more 
specific and to narrow the request, or to agree on an orderly procedure 
for the production of the requested records, in order to satisfy the 
request without disproportionate adverse effect on IRS operations.
    (iii) Statutory or regulatory restrictions.(A) In the case of 
records containing information with respect to particular persons the 
disclosure of which is limited by statute or regulations, persons making 
requests shall establish their identity and right to access to such 
records. Persons requesting access to such records which pertain to 
themselves may establish their identity by--
    (1) The presentation of a single document bearing a photograph (such 
as a passport or identification badge), or the presentation of two items 
of identification which do not bear a photograph but do bear both a name 
and signature (such as a credit card or organization membership card), 
in the case of a request made in person,
    (2) The submission of the requester's signature, address, and one 
other identifier (such as a photocopy of a driver's license) bearing the 
requester's signature, in the case of a request by mail, or
    (3) The presentation in person or the submission by mail of a 
notarized statement, or a statement made under penalty of perjury in 
accordance with 28 U.S.C. 1746, swearing to or affirming such person's 
identity.
    (B) Additional proof of a person's identity shall be required before 
the requests shall be deemed to have met the requirement of paragraph 
(c)(4)(i)(E) of this section if it is determined that additional proof 
is necessary to protect against unauthorized disclosure of information 
in a particular case. Persons who have identified themselves to the 
satisfaction of IRS officials pursuant to this paragraph (c) shall be 
deemed to have established their right to access records pertaining to 
themselves. Persons requesting records on behalf of or pertaining to 
another person must provide adequate proof of the legal relationship 
under which they assert the right to access the requested records before 
the requirement of paragraph (c)(4)(i)(E) of this section shall be 
deemed met.
    (C) In the case of an attorney-in-fact, or other person requesting 
records on behalf of or pertaining to other persons, the requester shall 
furnish a properly executed power of attorney, Privacy Act consent, or 
tax information authorization, as appropriate. In the case of a 
corporation, if the requester has the authority to legally bind the 
corporation under applicable state law, such as its corporate president 
or chief executive officer, then a written statement or tax information 
authorization certifying as to that person's authority to make a request 
on behalf of the corporation shall be sufficient. If the requester is 
any other officer or employee of the corporation, then such requester 
shall furnish a written statement certifying as to that person's 
authority to make a request on behalf of the corporation by any 
principal officer and attested to by the secretary or other officer 
(other than the requester) that the person making the request on behalf 
of the corporation is properly authorized to make such a request. If the 
requester is other than one of the above, then such person

[[Page 121]]

may furnish a resolution by the corporation's board of directors or 
other governing body which provides that the person making the request 
on behalf of the corporation is properly authorized to make such a 
request, or shall otherwise satisfy the requirements set forth in 
section 6103(e). A person requesting access to records of a partnership 
or a subchapter S Corporation shall provide a notarized statement, or a 
statement made under penalty of perjury in accordance with 28 U.S.C. 
1746, that the requester was a member of the partnership or subchapter S 
corporation for a part of each of the years included in the request.
    (6) Requests for expedited processing. (i) When a requester 
demonstrates compelling need, a request shall be taken out of order and 
given expedited treatment. A compelling need involves--
    (A) Circumstances in which the lack of expedited treatment could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual;
    (B) An urgency to inform the public concerning actual or alleged 
Federal government activity, if made by a person primarily engaged in 
disseminating information. A person primarily engaged in disseminating 
information, if not a full-time representative of the news media, as 
defined in paragraph (f)(3)(ii)(B) of this section, must establish that 
he or she is a person whose main professional activity or occupation is 
information dissemination, though it need not be his or her sole 
occupation. A person primarily engaged in disseminating information does 
not include individuals who are engaged only incidentally in the 
dissemination of information. The standard of urgency to inform requires 
that the records requested pertain to a matter of current exigency to 
the American public, beyond the public's right to know about government 
activity generally, and that delaying a response to a request for 
records would compromise a significant recognized interest to and 
throughout the American general public;
    (C) The loss of substantial due process rights.
    (ii) A requester who seeks expedited processing must submit a 
statement, certified to be true and correct to the best of his or her 
knowledge and belief, explaining in detail why there is a compelling 
need for expedited processing.
    (iii) A request for expedited processing may be made at the time of 
the initial request for records or at any later time. For a prompt 
determination, requests for expedited processing must be submitted to 
the responsible official of the IRS who maintains the records requested 
except that a request for expedited processing under paragraph 
(c)(6)(i)(B) of this section shall be submitted directly to the 
Director, Communications Division, whose address is Office of Media 
Relations, CL:C:M, Internal Revenue Service, Room 7032, 1111 
Constitution Avenue, NW., Washington, DC 20224.
    (iv) Upon receipt by the responsible official in the IRS, a request 
for expedited processing shall be considered and a determination as to 
whether to grant or deny the request shall be made, and the requester 
notified, within ten days of the date of the request, provided that in 
no event shall the IRS have less than five days (excluding Saturdays, 
Sundays, and legal public holidays) from the date of the responsible 
official's receipt of the request for such processing. The determination 
to grant or deny a request for expedited processing shall be made solely 
on the information initially provided by the requester.
    (v) An appeal of an initial determination to deny expedited 
processing must be made within ten days of the date of the initial 
determination to deny expedited processing, and must otherwise comply 
with the requirements of paragraph (c)(10) of this section. Both the 
envelope and the appeal itself shall be clearly marked, ``Appeal for 
Expedited Processing.''
    (vi) IRS action to deny or affirm denial of a request for expedited 
processing pursuant to this paragraph, and IRS failure to respond in a 
timely manner to such a request shall be subject to judicial review, 
except that judicial review shall be based on the record before the IRS 
at the time of the determination. A district court of the

[[Page 122]]

United States shall not have jurisdiction to review the IRS's denial of 
expedited processing of a request for records after the IRS has provided 
a complete response to the request.
    (7) Date of receipt of request. (i) Requests for records and any 
separate agreement to pay, final notification of waiver of fees, or 
letter transmitting payment, shall be promptly stamped with the date of 
delivery to or dispatch by the office of the IRS official responsible 
for the control of the records requested. A request for records shall be 
considered to have been received on the date on which a complete request 
containing the information required by paragraphs (c)(4)(i)(A) through 
(I) has been received by the IRS official responsible for the control of 
the records requested. A determination that a request is deficient in 
any respect is not a denial of access, and such determinations are not 
subject to administrative appeal.
    (ii) The latest of such stamped dates shall be deemed for purposes 
of this section to be the date of receipt of the request, provided that 
the requirements of paragraphs (c)(4)(i)(A) through (I) of this section 
have been satisfied, and, where applicable--
    (A) The requester has agreed in writing, by executing a separate 
contract or otherwise, to pay the fees for search, duplication, and 
review determined due in accordance with paragraph (f) of this section, 
or
    (B) The fees have been waived in accordance with paragraph (f) of 
this section, or
    (C) Payment in advance has been received from the requester.
    (8) Search for records requested. (i) Upon the receipt of a request, 
search services shall be performed by IRS personnel to identify and 
locate the requested records. Search time includes any and all time 
spent looking for material responsive to the request, including page-by-
page or line-by-line identification of material within records. Where 
duplication of an entire record would be less costly than a line-by-line 
identification, duplication should be substituted for this kind of 
search. With respect to records maintained in computerized form, a 
search shall include services functionally analogous to a search for 
records which are maintained on paper.
    (ii) In determining which records are responsive to a request, the 
IRS official responsible for the control of the records requested shall 
include only those records within the official's possession and control 
as of the date of the receipt of the request by the appropriate 
disclosure officer.
    (9) Initial determination--(i) Responsible official.(A) The 
Associate Director, Personnel Security or delegate shall have the sole 
authority to make initial determinations with respect to requests for 
records under that office's control.
    (B) The Director of the Office of Governmental Liaison and 
Disclosure or delegate shall have the sole authority to make initial 
determinations with respect to all other requests for records of the IRS 
maintained in the Headquarters and its National Office of the Chief 
Counsel. For all other records within the control of the IRS, the 
initial determination with respect to requests for records may be made 
either by the Director, Office of Governmental Liaison and Disclosure, 
or by the IRS officials responsible for the control of the records 
requested, or their delegates (see paragraph (h) of this section).
    (ii) Processing of request. The appropriate responsible official or 
delegate shall respond in the approximate order of receipt of the 
requests, to the extent consistent with sound administrative practice. 
In any event, the initial determination shall be made and notification 
thereof mailed within 20 days (excepting Saturdays, Sundays, and legal 
public holidays) after the date of receipt of the request, as determined 
in accordance with paragraph (c)(7) of this section, unless the 
responsible official invokes an extension pursuant to paragraph (c)(11) 
of this section, the requester otherwise agrees to an extension of the 
20 day time limitation, or the request is an expedited request.
    (iii) Granting of request. If the request is granted in full or in 
part, and if the requester wants a copy of the records, a statement of 
the applicable fees, if there are any, shall be mailed to the requester 
either at the time of the determination or shortly thereafter. In

[[Page 123]]

the case of a request for inspection, the records shall be made 
available promptly for inspection, at the time and place stated, 
normally at the appropriate office where the records requested are 
controlled. If the person making the request has expressed a desire to 
inspect the records at another office of the IRS, a reasonable effort 
shall be made to comply with the request. Records shall be made 
available for inspection at such reasonable and proper times so as not 
to interfere with their use by the IRS or to exclude other persons from 
making inspections. In addition, reasonable limitations may be placed on 
the number of records which may be inspected by a person on any given 
date. The person making the request shall not be allowed to remove the 
records from the office where inspection is made. If, after making 
inspection, the person making the request desires copies of all or a 
portion of the requested records, copies shall be furnished upon payment 
of the established fees prescribed by paragraph (f) of this section.
    (iv) Denial of request. If it is determined that some records shall 
be denied, the person making the request shall be so notified by mail. 
The letter of notification shall specify the city or other location 
where the requested records are situated, contain a brief statement of 
the grounds for not granting the request in full including the 
exemption(s) relied upon, the name and any title or position of the 
official responsible for the denial, and advise the person making the 
request of the right to appeal to the Commissioner in accordance with 
paragraph (c)(10) of this section.
    (A) In denying a request for records, in whole or in part, the IRS 
shall include the date that the request was received in the appropriate 
disclosure office, and shall provide an estimate of the volume of the 
denied matter to the person making the request, unless providing such 
estimate would harm an interest protected by an exemption in 5 U.S.C. 
552(b) or (c) pursuant to which the denial is made; and
    (B) The amount of information deleted shall be indicated on the 
released portion of the record, unless including that indication would 
harm an interest protected by an exemption in 5 U.S.C. 552(b) under 
which the deletion is made. If technically feasible, the amount of the 
information deleted and the asserted exemption shall be indicated at the 
place in the record where such deletion is made.
    (v) Inability to locate and evaluate within time limits. Where the 
records requested cannot be located and evaluated within the initial 
twenty day period or any extension thereof in accordance with paragraph 
(c)(11) of this section, the search for the records or evaluation shall 
continue, but the requester shall be notified, and advised that the 
requester may consider such notification a denial of the request for 
records. The requester shall be provided with a statement of judicial 
rights along with the notification letter. The requester may also be 
invited, in the alternative, to agree to a voluntary extension of time 
in which to locate and evaluate the records. Such voluntary extension of 
time shall not constitute a waiver of the requester's right to appeal or 
seek judicial review of any denial of access ultimately made or the 
requester's right to seek judicial review in the event of failure to 
comply with the time extension granted.
    (10) Administrative appeal. (i) The requester may submit an 
administrative appeal to the Commissioner of Internal Revenue by letter 
that is postmarked within 35 days after the later of the date of any 
letter of notification described in paragraph (c)(9)(iv) of this 
section, the date of any letter of notification of an adverse 
determination of the requester's category described in paragraph (f)(3) 
of this section, the date of any letter of notification of an adverse 
determination of the requester's fee waiver or reduction request 
described in paragraph (f)(2) of this section, the date of any letter 
determining that no responsive records exist, or the date of the last 
transmission of the last records released. An administrative appeal for 
denial of a request for expedited processing must be made to the 
Commissioner of Internal Revenue by letter that is postmarked within 10 
days after the date of any letter of notification discussed in paragraph 
(c)(6)(iv) of this section.

[[Page 124]]

    (ii) The letter of appeal shall--
    (A) Be made in writing and signed by the requester;
    (B) Be addressed to the Commissioner and mailed to IRS Appeals, 
6377A Riverside Avenue, Suite 110, Riverside, California 92506-FOIA 
Appeal;
    (C) Reasonably describe the records requested to which the appeal 
pertains in accordance with paragraph (c)(5)(i) of this section;
    (D) Set forth the address where the appellant desires to be notified 
of the determination on appeal;
    (E) Specify the date of the request, the office to which the request 
was submitted, and where possible, enclose a copy of the initial request 
and the initial determination being appealed; and
    (F) Ask the Commissioner to grant the request for records, fee 
waiver, expedited processing, or favorable fee category, as applicable, 
or verify that an appropriate search was conducted and the responsive 
records were either produced or an appropriate exemption asserted. The 
person submitting the appeal may submit any argument in support of the 
appeal in the letter of appeal.
    (iii) Appeals shall be stamped promptly with the date of their 
receipt in the Office of Appeals, and the later of this stamped date or 
the stamped date of a document submitted subsequently which supplements 
the original appeal so that the appeal satisfies the requirements set 
forth in paragraphs (c)(10)(ii)(A) through (F) of this section shall be 
deemed by the IRS to be the date of receipt of the appeal for all 
purposes of this section. The Commissioner or a delegate shall 
acknowledge receipt of the appeal and advise the requester of the date 
of receipt and the date a response is due in accordance with this 
paragraph. If an appeal fails to satisfy any of the requirements of 
paragraph (c)(10)(ii)(A) through (F) of this section, the person making 
the request shall be advised promptly in writing of the additional 
requirements to be met. Except for appeals of denials of expedited 
processing, the determination to affirm the initial denial (in whole or 
in part) or to grant the request for records shall be made and 
notification of the determination shall be mailed within twenty days 
(exclusive of Saturdays, Sundays, and legal public holidays) after the 
date of receipt of the appeal unless extended pursuant to paragraph 
(c)(11)(i) of this section. Appeals of initial determinations to deny 
expedited processing must be made within 10 calendar days of the 
determination to deny the expedited processing. If it is determined that 
the appeal from the initial denial is to be denied (in whole or in 
part), the requester shall be notified in writing of the denial, the 
reasons therefor, the name and title or position of the official 
responsible for the denial on appeal, and the provisions of 5 U.S.C. 
552(a)(4) for judicial review of that determination.
    (11) Time extensions--(i) Unusual circumstances. (A) In unusual 
circumstances, the time limitations specified in paragraphs (c)(9) and 
(10) of this section may be extended by written notice from the official 
charged with the duty of making the determinations to the person making 
the request or appeal setting forth the reasons for this extension and 
the date on which the determination is expected to be sent. As used in 
this paragraph, the term unusual circumstances means, but only to the 
extent reasonably necessary to the proper processing of the particular 
request:
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
office processing the request;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are demanded in 
a single request;
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request or among two or more constituent units 
of the Department of the Treasury having substantial subject matter 
interest therein; and
    (4) The need for consultation with business submitters to determine 
the nature and extent of proprietary information in accordance with this 
section.
    (B) Any extension or extensions of time for unusual circumstances 
shall not cumulatively total more than ten

[[Page 125]]

days (exclusive of Saturday, Sunday and legal public holidays). If 
additional time is needed to process the request, the IRS shall notify 
the requester and provide the requester an opportunity to limit the 
scope of the request or arrange for an alternative time frame for 
processing the request or a modified request. The requester shall retain 
the right to define the desired scope of the request, as long as it 
meets the requirements contained in this section.
    (ii) Aggregation of requests. If more than one request is received 
from the same requester, or from a group of requesters acting in 
concert, and the IRS believes that such requests constitute a single 
request which would otherwise satisfy the unusual circumstances 
specified in subparagraph (c)(11)(i) of this section, and the requests 
involve clearly related matters, the IRS may aggregate these requests 
for processing purposes. Multiple requests involving unrelated matters 
shall not be aggregated.
    (12) Failure to comply. If the IRS fails to comply with the time 
limitations specified in paragraphs (c)(9), (10), or paragraph 
(c)(11)(i) of this section, any person making a request for records 
satisfying the requirements of paragraphs (c)(4)(i)(A) through (I) of 
this section, shall be deemed to have exhausted administrative remedies 
with respect to such request. Accordingly, this person may initiate suit 
in accordance with paragraph (c)(13) of this section.
    (13) Judicial review. If an administrative appeal pursuant to 
paragraph (c)(10) of this section for records or fee waiver or reduction 
is denied, or if a request for expedited processing is denied and there 
has been no determination as to the release of records, or if a request 
for a favorable fee category under paragraph (f)(3) of this section is 
denied, or a determination is made that there are no responsive records, 
or if no determination is made within the twenty day periods specified 
in paragraphs (c)(9) and (10) of this section, or the period of any 
extension pursuant to paragraph (c)(11)(i) of this section, or by grant 
of the requester, respectively, the person making the request may 
commence an action in a United States district court in the district in 
which the requester resides, in which the requester's principal place of 
business is located, in which the records are situated, or in the 
District of Columbia, pursuant to 5 U.S.C. 552(a)(4)(B). The statute 
authorizes an action only against the agency. With respect to records of 
the IRS, the agency is the IRS, not an officer or an employee thereof. 
Service of process in such an action shall be in accordance with the 
Federal Rules of Civil Procedure (28 U.S.C. App.) applicable to actions 
against an agency of the United States. Delivery of process upon the IRS 
shall be directed to the Commissioner of Internal Revenue, Attention: 
CC:PA, 1111 Constitution Avenue, NW., Washington, DC 20224. The IRS 
shall serve an answer or otherwise plead to any complaint made under 
this paragraph within 30 days after service upon it, unless the court 
otherwise directs for good cause shown. The district court shall 
determine the matter de novo, and may examine the contents of the IRS 
records in question in camera to determine whether such records or any 
part thereof shall be withheld under any of the exemptions described in 
5 U.S.C. 552(b) and the exclusions described in 5 U.S.C. 552(c). The 
burden shall be upon the IRS to sustain its action in not making the 
requested records available. The court may assess against the United 
States reasonable attorney fees and other litigation costs reasonably 
incurred by the person making the request in any case in which the 
complainant has substantially prevailed.
    (14) Preservation of records. All correspondence relating to the 
requests received by the IRS under this chapter, and all records 
processed pursuant to such requests, shall be preserved, until such time 
as the destruction of such correspondence and records is authorized 
pursuant to title 44 of the United States Code. Under no circumstances 
shall records be destroyed while they are the subject of a pending 
request, appeal, or lawsuit under 5 U.S.C. 552.
    (d) Rules for disclosure of certain specified matters. Requests for 
certain specified categories of records shall be processed by the IRS in 
accordance with other established procedures.

[[Page 126]]

    (1) Inspection of tax returns and attachments or transcripts. The 
inspection of returns and attachments is governed by the provisions of 
the internal revenue laws and regulations thereunder promulgated by the 
Secretary of the Treasury. See section 6103 and the regulations 
thereunder. Written requests for a copy of a tax return and attachments 
or a transcript of a tax return shall be made using IRS form 4506, 
``Request for Copy or Transcript of Tax Form.'' A reasonable fee, as the 
Commissioner may from time to time establish, may be charged for such 
copies.
    (2) Record of seizure and sale of real estate. Subject to the rules 
on disclosure set forth in section 6103, record 21, part 2, ``Record of 
seizure and sale of real estate'', is available for public inspection in 
the local IRS office where the real estate is located. Copies of Record 
21, part 2 shall be furnished upon written request. Members of the 
public may call the toll-free IRS Customer Service number, 1-800-829-
1040, to obtain the address of the appropriate local office. Record 21 
does not list real estate seized for use in violation of the internal 
revenue laws (see section 7302).
    (3) Public inspection of certain information returns, notices, and 
reports furnished by certain tax-exempt organizations and certain 
trusts. Subject to the rules on disclosure set forth in section 6104: 
Information furnished on any form 990 series or form 1041-A returns, 
pursuant to sections 6033 and 6034, shall be made available for public 
inspection and copying, upon written request; information furnished by 
organizations exempt from tax under section 527 on forms 8871, Political 
Organization Notice of Section 527 Status, and forms 8872, Political 
Organization Report of Contributions and Expenditures, are available for 
public inspection and copying from the IRS Web site at 
www.eforms.irs.gov. In addition, forms 8871 and 8872 shall be made 
available for public inspection and copying, upon written request; and 
information furnished by organizations exempt from tax under section 527 
on form 1120-POL pursuant to section 6012(a)(6) shall be made available 
for public inspection and copying upon written request. Written requests 
to inspect or obtain copies of any of the information described in this 
paragraph (d)(3) shall be made using form 4506-A, ``Request for Public 
Inspection or Copy of Exempt or Political Organization IRS Form,'' and 
be directed to the appropriate address listed on form 4506-A.
    (4) Public inspection of applications and determinations of certain 
organizations for tax exemption. Subject to the rules on disclosure set 
forth in section 6104, applications, including forms 1023 and 1024, and 
certain papers submitted in support of such applications, filed by 
organizations described in section 501(c) or (d) and determined to be 
exempt from taxation under section 501(a), and any letter or other 
document issued by the IRS with respect to such applications, shall be 
made available for public inspection and copying, upon written request. 
Written requests to inspect or obtain copies of this information shall 
be made using form 4506-A, ``Request for Public Inspection or Copy of 
Exempt or Political Organization IRS Form'' and be directed to the 
appropriate address listed on form 4506-A.
    (5) Public inspection of applications and annual returns with 
respect to certain deferred compensation plans and accounts and employee 
plans. Subject to the rules on disclosure set forth in section 6104; 
forms, applications, and papers submitted in support of such 
applications, with respect to the qualification of a pension, profit 
sharing, or stock bonus plan under sections 401(a), 403(a), or 405(a), 
an individual retirement account described in section 408(a), an 
individual retirement annuity described in section 408(b), or with 
respect to the exemption from tax of an organization forming part of 
such a plan or account, and any document issued by the IRS dealing with 
such qualification or exemption, shall be open to public inspection and 
copying upon written request. This paragraph shall not apply with 
respect to plans with no more than 25 plan participants. Written 
requests to inspect or obtain copies of such material shall be directed 
to IRS Customer Service--Tax Exempt & Government Entities Division 
(TEGE), PO Box 2508, Room 2023, Cincinnati, Ohio 45201; and information 
furnished on the Form 5500 series of returns, pursuant to section

[[Page 127]]

6058, shall be made available for public inspection and copying upon 
written request. Except for requests for form 5500-EZ, written requests 
to inspect or to obtain a copy of this information shall be directed to 
the Department of Labor, Public Disclosure, Room N-5638, 200 
Constitution Avenue, NW., Washington, DC 20210. Written requests to 
inspect or to obtain a copy of form 5500-EZ shall be directed to the 
Internal Revenue Service Center, PO Box 9941, Stop 6716, Ogden, Utah 
84409.
    (6) Publication of statistics of income. Statistics with respect to 
the operation of the income tax laws are published annually in 
accordance with section 6108 and Sec. 301.6108-1.
    (7) Comments received in response to a notice of proposed 
rulemaking, a solicitation for public comments, or prepublication 
comments. Written comments received in response to a notice of proposed 
rulemaking, a solicitation for public comments, or prepublication 
comments, may be inspected, upon written request, by any person upon 
compliance with the provisions of this paragraph. Comments may be 
inspected in the Freedom of Information Reading Room, IRS, 1111 
Constitution Avenue, NW., Room 1621, Washington, DC. The request to 
inspect comments must be in writing and signed by the person making the 
request and shall be addressed to the Commissioner of Internal Revenue, 
Attn: CC:ITA:RU, PO Box 7604, Ben Franklin Station, Washington, DC 
20044. The person submitting the written request may inspect the 
comments that are the subject of the request during regular business 
hours. If the requester wishes to inspect the documents, the requester 
shall be contacted by IRS Freedom of Information Reading Room personnel 
when the documents are available for inspection. Copies of comments may 
be made in the Freedom of Information Reading Room by the person making 
the request or may be requested, in writing, to the Commissioner of 
Internal Revenue, Attn: CC:ITA:RU, PO Box 7604, Ben Franklin Station, 
Washington, DC 20044. The IRS shall comply with requests for records 
under the paragraph within a reasonable time. The provisions of 
paragraph (f)(5)(iii) of this section, relating to fees for duplication, 
shall apply with respect to requests made in accordance with this 
paragraph.
    (8) Accepted offers in compromise. For one year after the date of 
execution, a copy of the form 7249, ``Offer Acceptance Report,'' for 
each accepted offer in compromise with respect to any liability for a 
tax imposed by title 26 shall be made available for inspection and 
copying in the location designated by the Compliance Area Director or 
Compliance Services Field Director within the Small Business and Self-
Employed Division (SBSE) of the taxpayer's geographic area of residence.
    (9) Public inspection of written determinations. Certain rulings, 
determination letters, technical advice memorandums, and Chief Counsel 
advice are open to public inspection pursuant to section 6110.
    (e) Other disclosure procedures. For procedures to be followed by 
officers and employees of the IRS upon receipt of a request or demand 
for certain internal revenue records or information the disclosure 
procedure for which is not covered by this section, see Sec. 301.9000-
1.
    (f) Fees for services--(1) In general. Except as otherwise provided, 
the fees to be charged for search, duplication, and review services 
performed by the IRS, with respect to the processing of Freedom of 
Information Act requests, shall be determined and collected in 
accordance with the provisions of this subsection. A fee shall not be 
charged for monitoring a requester's inspection of records which 
contains exempt matter. The IRS may recover the applicable fees even if 
there is ultimately no disclosure of records. Should services other than 
the services described in this paragraph be requested and rendered, 
which are not required by the Freedom of Information Act, fees shall be 
charged to recover the actual direct cost to the IRS.
    (2) Waiver or reduction of fees. (i) The fees authorized by this 
paragraph may be waived or reduced on a case-by-case basis in accordance 
with this subsection by any IRS official who is authorized to make the 
initial determination pursuant to paragraph (c)(9) of

[[Page 128]]

this section. Fees shall be waived or reduced by such official when it 
is determined that disclosure of the requested information is in the 
public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the IRS and is 
not primarily in the commercial interest of the requester. Such 
officials shall consider several factors, including, but not limited to, 
paragraphs (f)(2)(i) through (vi), in determining requests for waiver or 
reduction of fees-
    (A) Whether the subject of the releasable records concerns the 
agency's operations or activities;
    (B) Whether the releasable records are likely to contribute to an 
understanding of the agency's operations or activities;
    (C) Whether the releasable records are likely to contribute to the 
general public's understanding of the agency's operations or activities 
(e.g., how will the requester convey the information to the general 
public);
    (D) The significance of the contribution to the general public's 
understanding of the agency's operations or activities (e.g., is the 
information contained in the releasable records already available to the 
general public);
    (E) The existence and magnitude of the requester's commercial 
interest, as that term is used in paragraph (f)(3)(i)(A) of this 
section, being furthered by the releasable records; and
    (F) Whether the magnitude of the requester's commercial interest is 
sufficiently large in comparison to the general public's interest.
    (ii) Requesters asking for reduction or waiver of fees must state 
the reasons why they believe disclosure meets the standards set forth in 
paragraph (f)(2)(ii) of this section in a written request signed by the 
requester.
    (iii) The indigence of the requester shall not be considered as a 
factor to determine if the requester is entitled to a reduction or 
waiver of fees.
    (iv) Normally, no charge shall be made for providing records to 
federal, state, local, or foreign governments, or agencies or offices 
thereof, or international governmental organizations.
    (v) The initial request for waiver or reduction of fees shall be 
addressed to the official of the IRS to whose office the request for 
disclosure is delivered pursuant to paragraph (c)(4)(i)(C) of this 
section. Appeals from denials of requests for waiver or reduction of 
fees shall be decided by the Commissioner's delegate in accordance with 
the criteria set forth in paragraph (f)(2)(ii) of this section. Appeals 
shall be received by the Commissioner's delegate within 35 days of the 
date of the letter of notification denying the initial request for 
waiver or reduction and shall be decided promptly. See paragraph 
(c)(10)(ii)(B) of this section for the appropriate address. Upon receipt 
of the determination on appeal to deny a request for waiver of fees, the 
requester may initiate an action in a United States district court to 
review the request for waiver of fees. In such action, the court shall 
consider the matter de novo, except that the court's review of the 
matter shall be limited to the record before the IRS official to whose 
office the request for waiver is delivered. In such action, the court 
shall consider the matter under the arbitrary and capricious standard.
    (3) Categories of requesters--(i) Attestation. A request for records 
under this section shall include an attestation as to the status of the 
requester for use by the IRS official to whose office the request is 
delivered in determining the appropriate fees to be assessed. No 
attestation is required for a requester who falls within paragraph 
(f)(3)(ii)(E)(an ``other requester'').
    (ii) Categories--(A) Commercial use requester. Any person who seeks 
information for a use or purpose that furthers the commercial, trade, or 
profit interests of the requester or the person on whose behalf the 
request is made.
    (B) News media requester. Any person actively gathering news for an 
entity that is organized and operated to publish or broadcast news 
(i.e., information about current events or of current interest to the 
public) to the public. News media entities include, but are not limited 
to, television or radio stations broadcasting to the public at large, 
publishers of periodicals, to the extent they disseminate news, who make 
their periodicals available for purchase or subscription by the general 
public, computerized news services and

[[Page 129]]

telecommunications. Free lance journalists shall be included as media 
requesters if they can demonstrate a solid basis for expecting 
publication through a qualifying news entity (e.g., publication 
contract, past publication record). Specialized periodicals, although 
catering to a narrower audience, may be considered media requesters so 
long as they are available to the public generally, via newsstand or 
subscription.
    (C) Educational institution requester. Any person who, on behalf of 
a preschool, public or private elementary or secondary school, 
institution of undergraduate or graduate higher education, institution 
of professional or vocational education, which operates a program or 
programs of scholarly research, seeks records in furtherance of the 
institution's scholarly research and is not for a commercial use. This 
category does not include requesters wanting records for use in meeting 
individual academic research or study requirements.
    (D) Noncommercial scientific institution requester. Any person on 
behalf of an institution that is not operated on a commercial basis, 
that is operated solely for the purpose of conducting scientific 
research whose results are not intended to promote any particular 
product or industry.
    (E) Other requester. Any requester who does not fall within the 
categories described in paragraphs (f)(3)(ii)(A) through (D).
    (iii) Determination of proper category. Where the IRS has reasonable 
cause to doubt the use to which a requester shall put the records 
sought, or where that use is not clear from the record itself, the IRS 
shall seek additional clarification from the requester before assigning 
the request to a specific category. In any event, a determination of the 
proper category of requester shall be based upon a review of the 
requester's submission and may also be based upon the IRS' own records.
    (iv) Allowable charges--(A) Commercial use requesters. Records shall 
be provided to commercial use requesters for the cost of search, 
duplication, and review (including doing all that is necessary to excise 
and otherwise prepare records for release) of records. Commercial use 
requesters are not entitled to two hours of free search time or 100 
pages of free duplication.
    (B) News media, educational institution, and noncommercial 
scientific institution requesters. Records shall be provided to news 
media, educational institution, and noncommercial scientific institution 
requesters for the cost of duplication alone, excluding fees for the 
first 100 pages.
    (C) Other requesters. Requesters who do not fit into any of the 
above categories shall be charged fees that shall cover the full actual 
direct cost of searching for and duplicating records, except that the 
first two hours of search time and first 100 pages of duplication shall 
be furnished without charge. Requests from individuals for records about 
themselves maintained in the IRS's systems of records shall continue to 
be treated under the fee provisions of the Privacy Act of 1974, which 
permits fees only for duplication after the first 100 pages are 
furnished free of charge.
    (4) Avoidance of unexpected fees. (i) In order to protect requesters 
from unexpected fees, all requests for records shall state the agreement 
of the requesters to pay the fees determined in accordance with 
paragraph (f)(5) of this section or state the upper limit they are 
willing to pay to cover the costs of processing their requests.
    (ii) When the fees for processing requests are estimated by the IRS 
to exceed the upper limit agreed to by a requester, or when a requester 
has failed to state a limit and the costs are estimated to exceed $250, 
and the IRS has not then determined to waive or reduce the fees, a 
notice shall be sent to the requester. This notice shall--
    (A) Inform the requester of the estimated costs;
    (B) Extend an offer to the requester to confer with agency personnel 
in an attempt to reformulate the request in a manner which shall reduce 
the fees and still meet the needs of the requester;
    (C) If the requester is not amenable to reformulation, which would 
reduce fees to under $250, then advance payment of the estimated fees 
shall be required; and

[[Page 130]]

    (D) Inform the requester that the time period, within which the IRS 
is obliged to make a determination on the request, shall not begin to 
run, pending a reformulation of the request or the receipt of advance 
payment from the requester, as appropriate.
    (5) Fees for services. The fees for services performed by the IRS 
shall be imposed and collected as set forth in this paragraph. No fees 
shall be charged if the costs of routine collecting and processing the 
fees allowable under 5 U.S.C. 552(a)(4)(A) are likely to equal or exceed 
the amount of the fee.
    (i) Search services. Fees charged for search services are as 
follows:
    (A) Searches for records other than computerized records. The IRS 
shall charge for search services at the salary rate(s) (i.e., basic pay 
plus 16 percent) of the employee(s) making the search. An average rate 
for the range of grades typically involved may be established. Fees may 
be charged for search time as prescribed in this section even if the 
time spent searching does not yield any records, or if records are 
denied.
    (B) Searches for computerized records. Actual direct cost of the 
search, including computer search time, runs, and the operator's salary. 
The fee for computer output shall be actual direct costs. For requesters 
in the ``other requester'' category, the charge for the computer search 
shall begin when the cost of the search (including the operator time and 
the cost of operating the computer) equals the equivalent dollar amount 
of two hours of the salary of the person performing the search.
    (C) Searches requiring travel or transportation. Shipping charges to 
transport records from one location to another, or for the 
transportation of an employee to the site of requested records when it 
is necessary to locate rather than examine the records, shall be at the 
rate of the actual cost of such shipping or transportation.
    (ii) Review Services--(A) Review defined. Review is the process of 
examining records in response to a commercial use requester, as that 
term is defined in paragraph (f)(3)(i)(A), upon initial consideration of 
the applicability of an exemption described in 5 U.S.C. 552(b) or an 
exclusion described in 5 U.S.C. 552(c) to the requested records, be it 
at the initial request or administrative appeal level, to determine 
whether any portion of any record responsive to the request is permitted 
to be withheld. Review includes doing all that is necessary to excise 
and otherwise prepare the records for release. Review does not include 
the time spent on resolving general legal or policy issues regarding the 
applicability of exemptions to the requested records.
    (B) Fees charged for review services. The IRS shall charge 
commercial use requesters for review of records at the initial 
determination stage at the salary rate(s) (i.e., basic pay plus 16 
percent) of the employee(s) making the review. An average rate for the 
range of grades typically involved may be established by the 
Commissioner.
    (iii) Duplication other than for tax returns and attachments. (A) 
Duplication fees charged for copies of paper records shall be a 
reasonable fee, as the Commissioner may from time to time establish.
    (B) The actual direct cost of duplication for photographs, films, 
videotapes, audiotapes, compact disks, and other materials shall be 
charged.
    (C) Records may be provided to a private contractor for copying and 
the requester shall be charged for the actual cost of duplication 
charged by the private contractor.
    (D) When other duplication processes not specifically identified 
above are requested and provided pursuant to the Freedom of Information 
Act, their actual direct cost to the IRS shall be charged.
    (E) Where the condition of the record does not enable the IRS to 
make legible copies, the IRS shall not attempt to reconstruct it. The 
official having jurisdiction over the record shall furnish the best copy 
that is available and advise the requester of this fact.
    (iv) Charges for copies of tax returns and attachments, and 
transcripts of tax returns. A charge shall be made for each copy of a 
tax return and its attachments, and transcripts of tax returns, supplied 
in response to a form 4506, ``Request for Copy of Tax Form.'' The amount 
of the charge shall be a reasonable fee as computed by the Commissioner 
from time to time, and as set forth on form 4506.

[[Page 131]]

    (v) Other services. Other services and materials requested (e.g., 
certification, express mailing) which are not specifically covered by 
this part and/or not required by the Freedom of Information Act are 
provided at the discretion of the IRS and are chargeable at the actual 
direct cost to the IRS.
    (6) Printed material. Certain relevant government publications which 
shall be placed on the shelves of the Freedom of Information Reading 
Room shall not be sold at that location. Copies of pages of these 
publications may be duplicated on the premises and a fee for such 
service may be charged in accordance with paragraph (f)(5)(iii) of this 
section. A person desiring to purchase the complete publication, for 
example, an Internal Revenue Bulletin, should contact the Superintendent 
of Documents, U.S. Government Printing Office, Washington, DC 20402.
    (7) Search, duplication, and deletion services with respect to 
records open to public inspection pursuant to section 6110. Fees charged 
for searching for, making deletions in, and copies of records subject to 
public inspection pursuant to section 6110 only upon written request 
shall be at the actual cost, as the Commissioner may from time to time 
establish.
    (8) Form of payment. Payment shall be made by check or money order, 
payable to the order of the Treasury of the United States.
    (9) Advance payments. (i) If previous fees have not been paid in a 
timely fashion, as defined in paragraph (f)(10) of this section, or 
where the estimated fees exceed $250, the IRS shall require payment in 
full of any outstanding fees and all estimated fees prior to processing 
a request. Additionally, the IRS reserves the right to require payment 
of fees after a request is processed and before any records are released 
to a requester. For purposes of this paragraph, a requester is the 
individual in whose name a request is made; however, where a request is 
made on behalf of another individual, and previous fees have not been 
paid within the designated time period by either the requester or the 
individual on whose behalf the request is made, then the IRS shall 
require payment in full of all outstanding fees and all estimated fees 
before processing the request.
    (ii) When the IRS acts pursuant to paragraph (f)(9)(i) of this 
section, the administrative time limits prescribed in paragraphs (c)(9) 
and (10) of this section, plus permissible extensions of these time 
limits as prescribed in paragraph (c)(11)(i) of this section, shall 
begin only after the IRS official to whom the request is delivered has 
received the fees described above in paragraph (f)(9)(i) of this 
section.
    (10) Interest. Interest shall be charged to requesters who fail to 
pay the fees in a timely fashion; that is, within 30 days following the 
day on which the statement of fees as set forth in paragraph (c)(9)(i) 
of this section was sent by the IRS official to whom the request was 
delivered. Whenever interest is charged, the IRS shall begin assessing 
interest on the 31st day following the date the statement of fees was 
mailed to the requester. Interest shall be at the rate prescribed in 31 
U.S.C. 3717. In addition, the IRS shall take all steps authorized by the 
Debt Collection Act of 1982, including administrative offset, disclosure 
to consumer reporting agencies, and use of collection agencies, as 
otherwise authorized by law to effect payment.
    (11) Aggregating requests. When the IRS official to whom a request 
is delivered reasonably believes that a requester or group of requesters 
is attempting to break down a request into a series of requests for the 
purpose of evading the assessment of fees, the IRS shall aggregate such 
requests and charge accordingly, upon notification to the requester and/
or requesters.
    (g) Business information and contractor proposal procedures-- (1) In 
general. Business information provided to the IRS by a business 
submitter shall not be disclosed pursuant to a Freedom of Information 
Act request except in accordance with this section.
    (2) Definition. Business information is any trade secret or other 
confidential financial or commercial (including research) information.
    (3) Notice to business submitters. Except where it is determined 
that the information is covered by paragraph (g)(9), the official having 
control over the requested records, which includes

[[Page 132]]

business information, shall provide a business submitter with prompt 
written notice of a request encompassing its business information 
whenever required in accordance with paragraph (g)(4) of this section. 
Such written notice shall either describe the exact nature of the 
business information requested or provide copies of the records or 
portions thereof containing the business information.
    (4) When notice is required. (i) For business information submitted 
to the IRS prior to October 13, 1987, the official having control over 
the requested records shall provide a business submitter with notice of 
a request whenever--
    (A) The business information was submitted to the IRS upon a 
commitment of confidentiality; or
    (B) The business information was voluntarily submitted and it is of 
a kind that would customarily not be released to the public by the 
person from whom it was obtained; or
    (C) The official has reason to believe that disclosure of the 
information may result in commercial or financial injury to the business 
submitter.
    (ii) For business information submitted to the IRS on or after 
October 13, 1987, the IRS shall provide a business submitter with notice 
of a request whenever--
    (A) The business submitter has designated the information as 
commercially or financially sensitive information; or
    (B) The official has reason to believe that disclosure of the 
information may result in commercial or financial injury to the business 
submitter.
    (iii) The business submitter's designation that the information is 
commercially or financially sensitive information should be supported by 
a statement or certification by an officer or authorized representative 
of the business providing specific justification that the information in 
question is, in fact, confidential commercial or financial information 
and has not been disclosed to the public.
    (iv) Notice of a request for business information falling within 
paragraph (g)(4)(ii)(A) of this section shall be required for a period 
of not more than ten years after the date of submission unless the 
business submitter requests, and provides acceptable justification for, 
a specific notice period of greater duration.
    (5) Opportunity to object to disclosure. Through the notice 
described in paragraph (g)(3) of this section, the official having 
control over the requested records shall afford a business submitter ten 
days (excepting Saturdays, Sundays and legal public holidays) within 
which to provide the official with a detailed statement of any objection 
to disclosure. Such statement shall specify all grounds for withholding 
any of the information, with particular attention to why the information 
is claimed to be trade secret or commercial or financial information 
that is privileged and confidential. Information provided by a business 
submitter pursuant to this paragraph may itself be subject to disclosure 
under 5 U.S.C. 552.
    (6) Notice of intent to disclose. The IRS shall consider a business 
submitter's objections and specific grounds for nondisclosure prior to 
determining whether to disclose business information. Whenever the 
official having control over the requested records decides to disclose 
business information over the objection of a business submitter, the 
official shall forward to the business submitter a written notice which 
shall include--
    (i) A statement of the reasons for which the business submitter's 
disclosure objections were not sustained;
    (ii) A description of the business information to be disclosed; and
    (iii) A specified disclosure date, which is ten days (excepting 
Saturdays, Sundays and legal public holidays) after the notice of the 
final decision to release the requested records has been mailed to the 
submitter. Except as otherwise prohibited by law, a copy of the 
disclosure notice shall be forwarded to the requester at the same time.
    (7) Judicial review--(i) In general. The IRS' disposition of the 
request and the submitter's objections shall be subject to judicial 
review under paragraph (c)(14) of this section. A requester is not 
required to exhaust administrative remedies if a complaint has been 
filed

[[Page 133]]

under this paragraph by a business submitter of the information 
contained in the requested records. Likewise, a business submitter is 
not required to exhaust administrative remedies if a complaint has been 
filed by the requester of these records.
    (ii) Notice of FOIA lawsuit. Whenever a requester brings suit 
seeking to compel disclosure of business information covered by 
paragraph (g)(4) of this section, the official having control over the 
requested records shall promptly provide the business submitter with 
written notice thereof.
    (iii) Exception to notice requirement. The notice requirements of 
this paragraph shall not apply if--
    (A) The official having control over the records determines that the 
business information shall not be disclosed;
    (B) The information lawfully has been published or otherwise made 
available to the public; or
    (C) Disclosure of the information is required by law (other than 5 
U.S.C. 552).
    (8) Appeals. Procedures for administrative appeals from denials of 
requests for business information are to be processed in accordance with 
paragraph (c)(10) of this section.
    (9) Contractor Proposals. (i) Pursuant to 41 U.S.C. 253b(m), the IRS 
shall not release under the Freedom of Information Act any proposal 
submitted by a contractor in response to the requirements of a 
solicitation for a competitive proposal, unless that proposal is set 
forth or incorporated by reference in a contract entered into between 
the IRS and the contractor that submitted the proposal. For purposes of 
this paragraph, the term proposal means any proposal, including a 
technical, management, or cost proposal, submitted by a contractor in 
response to the requirements of a solicitation for a competitive 
proposal.
    (ii) A copy of the FOIA request for information protected from 
disclosure under this paragraph shall be furnished to the contractor who 
submitted the proposal.
    (h) Responsible officials and their addresses. For purposes of this 
section, the IRS officials in the disclosure offices listed below are 
responsible for the control of records within their geographic area. In 
the case of records of the Headquarters Office (including records of the 
National Office of the Office of Chief Counsel), except as provided in 
paragraph (c)(9)(i)(A), the Director, Office of Governmental Liaison and 
Disclosure, or delegate, is the responsible official. Requests for these 
records should be sent to: IRS FOIA Request, Headquarters Disclosure 
Office, CL:GLD:D, 1111 Constitution Avenue, NW., Washington, DC 20224.
    (1) For Personnel Background Investigation Records, the address of 
the responsible official is: Internal Revenue Service, Attn: Associate 
Director, Personnel Security, Room 4244, A:PS:PSO, 1111 Constitution 
Avenue, NW. Washington, DC 20224.
    (2) For records of the Office of Chief Counsel other than those 
located in the Headquarters or Division Counsel immediate offices, 
records shall be deemed to be under the jurisdiction of the local area 
Disclosure Office. Requesters seeking records under this section should 
send their requests to the local area Disclosure Office address listed 
for the state where the requester resides or any activity associated 
with the records occurred (for states with multiple offices, the request 
should be sent to the nearest office):

                                 Alabama

IRS FOIA Request
New Orleans Disclosure Office
Mail Stop 40
600 S. Maestri Place
New Orleans, LA 70130

                                 Alaska

IRS FOIA Request
Oakland Disclosure Office
1301 Clay Street, Suite 840-S
Oakland, CA 94612-5210

                                Arkansas

IRS FOIA Request
Nashville Disclosure Office
MDP 44
801 Broadway, Room 480
Nashville, TN 37203

                                 Arizona

IRS FOIA Request
Phoenix Disclosure Office
Mail Stop 7000 PHX

[[Page 134]]

210 E. Earll Drive
Phoenix, AZ 85012

                               California

IRS FOIA Request
Laguna Niguel Disclosure Office
24000 Avila Road, M/S 2201
Laguna Niguel, CA 92677-0207

IRS FOIA Request
Los Angeles Disclosure Office
Mail Stop 1020
300 N. Los Angeles Street
Los Angeles, CA 90012-3363

IRS FOIA Request
Oakland Disclosure Office
1301 Clay Street, Suite 840-S
Oakland, CA 94612

IRS FOIA Request
San Jose Disclosure Office
Mail Stop HQ-4603
55 South Market Street
San Jose, CA 95113

                                Colorado

IRS FOIA Request
Denver Disclosure Office
Mail Stop 7000 DEN
600 17th Street
Denver, CO 80202-2490

                               Connecticut

IRS FOIA Request
Hartford Disclosure Office
William R. Cotter F.O.B.
Mail Stop 140
135 High Street
Hartford, CT 06103

                                Delaware

IRS FOIA Request
Baltimore Disclosure Office
George Fallon Fed. Bldg.
31 Hopkins Plaza, Room 1210
Baltimore, MD 21201

                          District of Columbia

IRS FOIA Request
Baltimore Disclosure Office
George Fallon Fed. Bldg.
31 Hopkins Plaza, Room 1210
Baltimore, MD 21201

                                 Florida

IRS FOIA Request
Fort Lauderdale Disclosure Off.
Mail Stop 4030
7850 SW 6th Court, Rm. 260
Plantation, FL 33324-3202

IRS FOIA Request
Jacksonville Disclosure Office
MS 4030
400 West Bay Street
Jacksonville, FL 32202-4437

                                 Georgia

IRS FOIA Request
Atlanta Disclosure Office
Mail Stop 602D, Room 1905
401 W. Peachtree Street, NW
Atlanta, GA 30308

                                 Hawaii

IRS FOIA Request
Laguna Niguel Disclosure Office
24000 Avila Road, M/S 2201
Laguna Niguel, CA 92677-0207

                                  Idaho

IRS FOIA Request
Seattle Disclosure Office
Mail Stop W625
915 2nd Avenue
Seattle, WA 98174

                                Illinois

IRS FOIA Request
Chicago Disclosure Office
Mail Stop 7000 CHI, Room 2820
230 S. Dearborn Street
Chicago, IL 60604

                                 Indiana

IRS FOIA Request
Indianapolis Disclosure Office
Mail Stop CL 658
575 N. Penn. Street
Indianapolis, IN 46204

                                  Iowa

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

                                 Kansas

IRS FOIA Request
St. Louis Disclosure Office
Mail Stop 7000 STL
PO Box 66781
St. Louis, MO 63166

                                Kentucky

IRS FOIA Request

[[Page 135]]

Cincinnati Disclosure Office
Post Office Box 1818, Rm. 7019
Cincinnati, OH 45201

                                Louisiana

IRS FOIA Request
New Orleans Disclosure Office
Mail Stop 40
600 S. Maestri Place
New Orleans, LA 70130

                                  Maine

IRS FOIA Request
Boston Disclosure Office
Mail Stop 41150
Post Office Box 9112
JFK Building
Boston, MA 02203

                                Maryland

IRS FOIA Request
Baltimore Disclosure Office
George Fallon Fed. Bldg.
31 Hopkins Plaza, Room 1210
Baltimore, MD 21201

                              Massachusetts

IRS FOIA Request
Boston Disclosure Office
Mail Stop 41150
JFK Building
Post Office Box 9112
Boston, MA 02203

                                Michigan

IRS FOIA Request
Detroit Disclosure Office
Mail Stop 11
Post Office Box 330500
Detroit, MI 48232-6500

                                Minnesota

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

                               Mississippi

IRS FOIA Request
New Orleans Disclosure Office
Mail Stop 40
600 S. Maestri Place
New Orleans, LA 70130

                                Missouri

IRS FOIA Request
St. Louis Disclosure Office
Mail Stop 7000 STL
PO Box 66781
St. Louis, MO 63166

                                 Montana

IRS FOIA Request
Denver Disclosure Office
Mail Stop 7000 DEN
600 17th Street
Denver, CO 80202-2490

                                Nebraska

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

                                 Nevada

IRS FOIA Request
Phoenix Disclosure Office
Mail Stop 7000 PHX
210 E. Earll Drive
Phoenix, AZ 85012

                              New Hampshire

IRS FOIA Request
Boston Disclosure Office
Mail Stop 41150
Post Office Box 9112
JFK Building
Boston, MA 02203

                               New Mexico

IRS FOIA Request
Phoenix Disclosure Office
Mail Stop 7000 PHX
210 E. Earll Drive
Phoenix, AZ 85012

                               New Jersey

IRS FOIA Request
Springfield Disclosure Office
PO Box 748
Springfield, NJ 07081-0748

   New York (Brooklyn, Queens, and the Counties of Nassau and Suffolk)

IRS FOIA Request
Brooklyn Disclosure Office
10 Metro Tech Center
625 Fulton Street
4th Floor, Suite 611
Brooklyn, NY 11201-5404

[[Page 136]]

   New York (Manhattan, Staten Island, the Bronx, and the Counties of 
                        Rockland and Westchester)

IRS FOIA Request
Manhattan Disclosure Office
110 W. 44th Street
New York, NY 10036

                      New York (All Other Counties)

IRS FOIA Request
Buffalo Disclosure Office
111 West Huron St., Room 505
Buffalo, NY 14202

                             North Carolina

IRS FOIA Request
Greensboro Disclosure Office
320 Federal Place, Room 409
Greensboro, NC 27401

                              North Dakota

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

                                  Ohio

IRS FOIA Request
Cincinnati Disclosure Office
Post Office Box 1818, Rm. 7019
Cincinnati, OH 45201

                                Oklahoma

IRS FOIA Request
Oklahoma City Disclosure Office
Mail Stop 7000 OKC
55 N. Robinson
Oklahoma City, OK 73102

                                 Oregon

IRS FOIA Request
Seattle Disclosure Office
Mail Stop W625
915 2nd Avenue
Seattle, WA 98174

                              Pennsylvania

IRS FOIA Request
Philadelphia Disclosure Office
600 Arch Street, Room 3214
Philadelphia, PA 19106

                              Rhode Island

IRS FOIA Request
Hartford Disclosure Office
William R. Cotter F.O.B.
Mail Stop 140
135 High Street
Hartford, CT 06103

                             South Carolina

IRS FOIA Request
Greensboro Disclosure Office
320 Federal Place, Room 409
Greensboro, NC 27401

                              South Dakota

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

                                Tennessee

IRS FOIA Request
Nashville Disclosure Office
MDP 44
801 Broadway, Room 480
Nashville, TN 37203

                                  Texas

IRS FOIA Request
Austin Disclosure Office
Mail Stop 7000 AUS
300 East 8th Street, Room 262
Austin, TX 78701

IRS FOIA Request
Dallas Disclosure Office
Mail Stop 7000 DAL
1100 Commerce Street
Dallas, TX 75242

IRS FOIA Request
Houston Disclosure Office
Mail Stop 7000 HOU
1919 Smith Street
Houston, TX 77002

                                  Utah

IRS FOIA Request
Denver Disclosure Office
Mail Stop 7000 DEN
600 17th Street
Denver, CO 80202-2490

                                 Vermont

IRS FOIA Request
Boston Disclosure Office
Mail Stop 41150
Post Office Box 9112
JFK Building
Boston, MA 02203

[[Page 137]]

                                Virginia

IRS FOIA Request
Richmond Disclosure Office
PO Box 10107
Richmond, VA 23240

                               Washington

IRS FOIA Request
Seattle Disclosure Office
Mail Stop 625
915 2nd Avenue
Seattle, WA 98174

                              West Virginia

IRS FOIA Request
Cincinnati Disclosure Office
Post Office Box 1818, Rm. 7019
Cincinnati, OH 45201

                                Wisconsin

IRS FOIA Request
Milwaukee Disclosure Office
Mail Stop 7000 MIL
310 W. Wisconsin Avenue
Milwaukee, WI 53203-2221

                                 Wyoming

IRS FOIA Request
Denver Disclosure Office
Mail Stop 7000 DEN
600 17th Street
Denver, CO 80202-2490

                        All APO and FPO Addresses

IRS FOIA Request
Headquarters Disclosure Office
CL:GLD:D
1111 Constitution Avenue, NW.
Washington, DC 20224

[67 FR 69675, Nov. 19, 2002]



                Subpart H_Tax Counseling for the Elderly

    Authority: Sec. 163(b)(5) of the Revenue Act of 1978, Pub. L. 95-
600, Nov. 6, 1978 (92 Stat. 2811) and Pub. L. 89-554, Sept. 6, 1966 (80 
Stat. 379, 5 U.S.C. 301).

    Source: 44 FR 72113, Dec. 13, 1979, unless otherwise noted.



Sec. 601.801  Purpose and statutory authority.

    (a) This Subpart H contains the rules for implementation of the Tax 
Counseling for the Elderly assistance program under section 163 of the 
Revenue Act of 1978, Pub. L. 95-600, November 6, 1978 (92 Stat. 2810). 
Section 163 authorizes the Secretary of the Treasury, through the 
Internal Revenue Service, to enter into agreements with private or 
public non-profit agencies or organizations for the purpose of providing 
training and technical assistance to prepare volunteers to provide tax 
counseling assistance for elderly individuals, age 60 and over, in the 
preparation of their Federal income tax returns.
    (b) Section 163 provides that the Secretary may provide:
    (1) Preferential access to Internal Revenue Service taxpayer service 
representatives for the purpose of making available technical 
information needed during the course of the volunteers' work;
    (2) Publicity for making elderly persons aware of the availability 
of volunteer taxpayer return preparation assistance programs under this 
section; and
    (3) Technical materials and publications to be used by such 
volunteers.
    (c) In carrying out responsibilities under section 163, the 
Secretary, through the Internal Revenue Service is also authorized:
    (1) To provide assistance to organizations which demonstrate, to the 
satisfaction of the Secretary, that their volunteers are adequately 
trained and competent to render effective tax counseling to the elderly 
in the preparation of Federal income tax returns;
    (2) To provide for the training of such volunteers, and to assist in 
such training, to ensure that such volunteers are qualified to provide 
tax counseling assistance to elderly individuals in the preparation of 
Federal income tax returns;
    (3) To provide reimbursement to volunteers through such 
organizations for transportation, meals, and other expenses incurred by 
them in training or providing tax counseling assistance in the 
preparation of Federal income tax returns under this section, and such 
other support and assistance determined to be appropriate in carrying 
out the provisions of the section;

[[Page 138]]

    (4) To provide for the use of services, personnel, and facilities of 
Federal executive agencies and State and local public agencies with 
their consent, with or without reimbursement; and
    (5) To prescribe rules and regulations necessary to carry out the 
provisions of the section.
    (d) With regard to the employment status of volunteers, section 163 
also provides that service as a volunteer in any program carried out 
under this section shall not be considered service as an employee of the 
United States. Volunteers under such a program shall not be subject to 
the provisions of law relating to Federal employment, except that the 
provisions relating to the illegal disclosure of income or other 
information punishable under section 1905 of Title 18, United States 
Code, shall apply to volunteers as if they were employees of the United 
States.



Sec. 601.802  Cooperative agreements.

    (a) General. Tax Counseling for the Elderly programs will be 
administered by sponsor organizations under cooperative agreements with 
the Internal Revenue Service. Use of cooperative agreements is in 
accordance with the Federal Grant and Cooperative Agreement Act of 1977, 
Pub. L. 95-224, February 3, 1978 (92 Stat. 3, 41 U.S.C. 501-509). 
Cooperative agreements will be legally binding agreements in document 
form.
    (b) Nature and contents of cooperative agreements. Each cooperative 
agreement will provide for implementation of the program in specified 
geographic areas. Cooperative agreements will set forth:
    (1) The functions and duties to be performed by the Internal Revenue 
Service and the functions and duties to be performed by the program 
sponsor,
    (2) The maximum amount of the award available to the program 
sponsor,
    (3) The services to be provided for each geographical area, and
    (4) Other requirements specified in the application.
    (c) Entry into cooperative agreements. The Commissioner of Internal 
Revenue, the Director, Taxpayer Service Division, or any other 
individual designated by the Commissioner may enter into a cooperative 
agreement for the Internal Revenue Service.
    (d) Competitive award of cooperative agreements. Cooperative 
agreements will generally be entered into based upon competition among 
eligible applicants.
    (1) To be eligible to enter into a cooperative agreement, an 
organization must be a private or public non-profit agency or 
organization with experience in coordinating volunteer programs. 
Federal, state, and local governmental agencies and organizations will 
not be eligible to become program sponsors.
    (2) Eligible applicants will be selected to enter into cooperative 
agreements based on an evaluation by the Internal Revenue Service of 
material provided in their applications. The Service will set forth the 
evaluative criteria in the application instructions.
    (3) Determinations as to the eligibility and selection of agencies 
and organizations to enter into cooperative agreements will be made 
solely by the Internal Revenue Service and will not be subject to 
appeal.
    (e) Noncompetitive award of cooperative agreements. If 
appropriations to implement the Tax Counseling for the Elderly program 
are received at a time close to when tax return preparation assistance 
must be provided or when other factors exist which make the use of 
competition to select agencies and organizations to enter into 
cooperative agreements impracticable, cooperative agreements will be 
entered into without competition with eligible agencies and 
organizations selected by the Internal Revenue Service. Determination of 
when the use of competition is impracticable will be made solely by the 
Internal Revenue Service and will not be subject to appeal.
    (f) Renegotiation, suspension, termination and modification. (1) 
Cooperative agreements will be subject to renegotiation (including the 
maximum amount of the award available to a sponsor), suspension, or 
termination if performance reports required by the cooperative agreement 
and/or other evaluations by or audits by the Internal Revenue Service or 
others indicate that planned performance goals or other provisions of 
the cooperative agreement, the regulations, or Section 163 of

[[Page 139]]

the Revenue Act of 1978 are not being satisfactorily met. The necessity 
for renegotiation, suspension, or termination, will be determined solely 
by the Internal Revenue Service and will not be subject to appeal.
    (2) Cooperative agreements may be modified in writing by mutual 
agreement between the Internal Revenue Service and the program sponsor 
at any time. Modifications will be based upon factors such as an 
inability to utilize all funds available under a cooperative agreement, 
the availability of additional funds and an ability to effectively 
utilize additional funds, and interference of some provisions with the 
efficient operation of the program.
    (g) Negotiation. If the proposed program of an eligible applicant 
does not warrant award of an agreement, the Internal Revenue Service may 
negotiate with the applicant to bring the application up to a standard 
that will be adequate for award. If more than one inadequate application 
has been received for the geographic area involved, negotiation to bring 
all such applications up to a standard will be conducted with all such 
applicants unless time does not permit negotiations with all.



Sec. 601.803  Program operations and requirements.

    (a) Objective. The objective of the Tax Counseling for the Elderly 
program is to provide free assistance in the preparation of Federal 
income tax returns to elderly taxpayers age 60 and over, by providing 
training, technical and administrative support to volunteers under the 
direction of non-profit agencies and organizations that have cooperative 
agreements with the Internal Revenue Service.
    (b) Period of program operations. Most tax return preparation 
assistance will be provided to elderly taxpayers during the period for 
filing Federal income tax returns, from January 1 to April 15 each year. 
However, the program activities required to ensure elderly taxpayers 
efficient and quality tax assistance will normally be conducted year 
round. Program operations will generally be divided into the following 
segments each year: October--recruit volunteers; November and December--
set training and testing schedules for volunteers, identify assistance 
sites, complete publicity plans for sites; December and January--train 
and test volunteers, set volunteer assistance schedules; January through 
May--provide tax assistance, conduct publicity for sites; May and June--
prepare final reports and evaluate program; July and August--prepare for 
next year's program.
    (c) Assistance requirements. All tax return preparation assistance 
provided under Tax Counseling for the Elderly programs must be provided 
free of charge to taxpayers and must be provided only to elderly 
individuals. An elderly individual is an individual age 60 or over at 
the close of the individual's taxable year with respect to which tax 
return preparation assistance is to be provided. Where a joint return is 
involved, assistance may be provided where only one spouse satisfies the 
60 year age requirement.
    (d) Training and testing of volunteers. Volunteers will normally be 
provided training and will normally be required to pass tests designed 
to measure their understanding of Federal tax subjects on which they 
will provide tax return assistance. Volunteers who do not receive a 
satisfactory score will not be eligible to participate in the program.
    (e) Confidentiality of tax information. Program sponsors must obtain 
written assurance from all volunteers and all other individuals involved 
in the program, to respect the confidentiality of income and financial 
information known as a result of preparation of a return or of providing 
tax counseling assistance in the preparation of Federal income tax 
returns.



Sec. 601.804  Reimbursements.

    (a) General. When provided for in cooperative agreements, the 
Internal Revenue Service will provide amounts to program sponsors for 
reimbursement to volunteers for transportation, meals, and other 
expenses incurred in training or providing tax return assistance and to 
program sponsors for reimbursement of overhead expenses. Cooperative 
agreements will establish the items for which reimbursements will be 
allowed and the method of reimbursement, e.g., stipend versus actual

[[Page 140]]

expenses for meals, as well as developing necessary procedures, forms, 
and accounting and financial control systems.
    (b) Direct, reasonable, and prudent expenses. Reimbursements will be 
allowed only for direct, reasonable, and prudent expenses incurred as a 
part of a volunteer's service or as a part of the program sponsor's 
overhead.
    (c) Limitation. Total reimbursements provided to a program sponsor 
shall not exceed the total amount specified in the cooperative 
agreement. The Internal Revenue Service shall not be liable for 
additional amounts to program sponsors, volunteers, or anyone else.
    (d) Availability of appropriated funds. Expense reimbursements and 
other assistance to be provided by the Internal Revenue Service under 
cooperative agreements are contingent upon the availability of 
appropriated funds for the Tax Counseling for the Elderly program.



Sec. 601.805  Miscellaneous administrative provisions.

    (a) Responsibilities and relationship of Internal Revenue and 
program sponsor. Substantial involvement is anticipated between the 
Internal Revenue Service and the program sponsors in conducting this 
program. Specific responsibilities and obligations of the Internal 
Revenue Service and the program sponsors will be set forth in each 
cooperative agreement.
    (b) Administrative requirements set forth in OMB and Treasury 
Circulars. (1) The basic administrative requirements applicable to 
individual cooperative agreements are contained in Office of Management 
and Budget Circular No. A-110, Grants and Agreements with Institutions 
of Higher Education, Hospitals and Other Nonprofit Organizations (41 FR 
32016). All applicable provisions of this circular and any existing and 
further supplements and revisions are incorporated into these 
regulations and into all cooperative agreements entered into between the 
Internal Revenue Service and program sponsors.
    (2) Additional operating procedures and instructions may be 
developed by the Internal Revenue Service to direct recipient 
organizations in carrying out the provisions of this subpart, such as 
instructions for using letters of credit. Any such operating procedures 
or instructions will be incorporated into each cooperative agreement.
    (c) Joint funding. Tax Counseling for the Elderly programs will not 
be eligible for joint funding. Accordingly, the Joint Funding 
Simplification Act of 1974, Pub. L. 93-510, December 5, 1974 (88 Stat. 
1604, 42 U.S.C. 4251-4261) and Office of Management and Budget Circular 
No. A-111, Jointly Funded Assistance to State and Local Governments and 
Nonprofit Organizations (41 FR 32039), will not apply.
    (d) Discrimination. No program sponsor shall discriminate against 
any person providing tax return assistance on the basis of age, sex, 
race, religion or national origin in conducting program operations. No 
program sponsor shall discriminate against any person in providing such 
assistance on the basis of sex, race, religion or national origin.

[44 FR 72113, Dec. 13, 1979, as amended at 49 FR 36500, Sept. 18, 1984]



Sec. 601.806  Solicitation of applications.

    (a) Solicitation. The Commissioner of Internal Revenue or the 
Commissioner's delegate may, at any time, solicit eligible agencies and 
organizations to submit applications. Generally, applications will be 
solicited and accepted in June and July of each year. Deadlines for 
submitting applications and the schedule for selecting program sponsors 
will be provided with application documents.
    (1) Before preparing and submitting an unsolicited application, 
organizations are strongly encouraged to contact the Internal Revenue 
Service at the address provided in paragraph (b) (2) of this section.
    (2) A solicitation of an application is not an assurance or 
commitment that the Internal Revenue Service will enter into a 
cooperative agreement. The Internal Revenue Service will not pay any 
expenses or other costs incurred by the applicant in considering, 
preparing or submitting an application.
    (b) Application. (1) In the application documents, the Commissioner 
or the Commissioner's delegate will specify program requirements which 
the applicant must meet.

[[Page 141]]

    (2) Eligible organizations interested in participating in the 
Internal Revenue Service Tax Counseling for the Elderly program should 
request an application from the:

Program Manager, Tax Counseling for the Elderly, Taxpayer Service 
Division TX:T:I, Internal Revenue Service, 1111 Constitution Ave., N.W., 
Washington, DC 20224, (202) 566-4904.



 Subpart I_Use of Penalty Mail in the Location and Recovery of Missing 
                                Children

    Source: T.D. 8848, 64 FR 69398, Dec. 13, 1999, unless otherwise 
noted.



Sec. 601.901  Missing children shown on penalty mail.

    (a) Purpose. To support the national effort to locate and recover 
missing children, the Internal Revenue Service (IRS) joins other 
executive departments and agencies of the Government of the United 
States in using official mail to disseminate photographs and 
biographical information on hundreds of missing children.
    (b) Procedures for obtaining and disseminating data. (1) The IRS 
shall publish pictures and biographical data related to missing children 
in domestic penalty mail containing annual tax forms and instructions, 
taxpayer information publications, and other IRS products directed to 
members of the public in the United States and its territories and 
possessions.
    (2) Missing children information shall not be placed on the 
``Penalty Indicia,'' ``OCR Read Area,'' ``Bar Code Read Area,'' and 
``Return Address'' areas of letter-size envelopes.
    (3) The IRS shall accept photographic and biographical materials 
solely from the National Center for Missing and Exploited Children 
(National Center). Photographs that were reasonably current as of the 
time of the child's disappearance, or those which have been updated to 
reflect a missing child's current age through computer enhancement 
technique, shall be the only acceptable form of visual media or 
pictorial likeness used in penalty mail.
    (c) Withdrawal of data. The shelf life of printed penalty mail is 
limited to 3 months for missing child cases. The IRS shall follow those 
guidelines whenever practicable. For products with an extended shelf 
life, such as those related to filing and paying taxes, the IRS will not 
print any pictures or biographical data relating to missing children 
without obtaining from the National Center a waiver of the 3-month 
shelf-life guideline.
    (d) Reports and contact official. IRS shall compile and submit to 
OJJDP reports on its experience in implementing Public Law 99-87, 99 
Stat. 290, as required by that office. The IRS contact person is: Chief, 
Business Publications Section (or successor office), Tax Forms and 
Publications Division, Technical Publications Branch, OP:FS:FP:P:3, Room 
5613, Internal Revenue Service, 1111 Constitution Ave., NW., Washington, 
DC 20224.
    (e) Period of applicability. This section is applicable December 13, 
1999 through December 31, 2002.

[T.D. 8848, 64 FR 69398, Dec. 13, 1999; 65 FR 15862, Mar. 24, 2000]



PART 602_OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT--Table 
of Contents






Sec. 602.101  OMB Control numbers.

    (a) Purpose. This part collects and displays the control numbers 
assigned to collections of information in Internal Revenue Service 
regulations by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1980. The Internal Revenue Service intends 
that this part comply with the requirements of Sec. Sec. 1320.7(f), 
1320.12, 1320.13, and 1320.14 of 5 CFR part 1320 (OMB regulations 
implementing the Paperwork Reduction Act), for the display of control 
numbers assigned by OMB to collections of information in Internal 
Revenue Service regulations. This part does not display control numbers 
assigned by the Office of Management and Budget to collections of 
information of the Bureau of Alcohol, Tobacco, and Firearms.
    (b) Display.

------------------------------------------------------------------------
                                                             Current OMB
     CFR part or section where identified and described      control No.
------------------------------------------------------------------------
1.1(h)-1(e)................................................    1545-1654
1.23-5.....................................................    1545-0074

[[Page 142]]

 
1.25-1T....................................................    1545-0922
                                                               1545-0930
1.25-2T....................................................    1545-0922
                                                               1545-0930
1.25-3T....................................................    1545-0922
                                                               1545-0930
1.25-4T....................................................    1545-0922
1.25-5T....................................................    1545-0922
1.25-6T....................................................    1545-0922
1.25-7T....................................................    1545-0922
1.25-8T....................................................    1545-0922
1.25A-1....................................................    1545-1630
1.28-1.....................................................    1545-0619
1.31-2.....................................................    1545-0074
1.32-2.....................................................    1545-0074
1.32-3.....................................................    1545-1575
1.37-1.....................................................    1545-0074
1.37-3.....................................................    1545-0074
1.41-2.....................................................    1545-0619
1.41-3.....................................................    1545-0619
1.41-4A....................................................    1545-0074
1.41-4 (b) and (c).........................................    1545-0074
1.41-8(b)..................................................    1545-1625
1.41-8(d)..................................................    1545-0732
1.41-9.....................................................    1545-0619
1.42-1T....................................................    1545-0984
                                                               1545-0988
1.42-2.....................................................    1545-1005
1.42-5.....................................................    1545-1357
1.42-6.....................................................    1545-1102
1.42-8.....................................................    1545-1102
1.42-10....................................................    1545-1102
1.42-13....................................................    1545-1357
1.42-14....................................................    1545-1423
1.42-17....................................................    1545-1357
1.43-3(a)(3)...............................................    1545-1292
1.43-3(b)(3)...............................................    1545-1292
1.44A-1....................................................    1545-0068
1.44A-3....................................................    1545-0074
1.44B-1....................................................    1545-0219
1.45D-1....................................................    1545-1765
1.46-1.....................................................    1545-0123
                                                               1545-0155
1.46-3.....................................................    1545-0155
1.46-4.....................................................    1545-0155
1.46-5.....................................................    1545-0155
1.46-6.....................................................    1545-0155
1.46-8.....................................................    1545-0155
1.46-9.....................................................    1545-0155
1.46-10....................................................    1545-0118
1.46-11....................................................    1545-0155
1.47-1.....................................................    1545-0166
                                                               1545-0155
1.47-3.....................................................    1545-0166
                                                               1545-0155
1.47-4.....................................................    1545-0123
1.47-5.....................................................    1545-0092
1.47-6.....................................................    1545-0099
1.48-3.....................................................    1545-0155
1.48-4.....................................................    1545-0808
                                                               1545-0155
1.48-5.....................................................    1545-0155
1.48-6.....................................................    1545-0155
1.48-12....................................................    1545-0155
                                                               1545-1783
1.50A-1....................................................    1545-0895
1.50A-2....................................................    1545-0895
1.50A-3....................................................    1545-0895
1.50A-4....................................................    1545-0895
1.50A-5....................................................    1545-0895
1.50A-6....................................................    1545-0895
1.50A-7....................................................    1545-0895
1.50B-1....................................................    1545-0895
1.50B-2....................................................    1545-0895
1.50B-3....................................................    1545-0895
1.50B-4....................................................    1545-0895
1.50B-5....................................................    1545-0895
1.51-1.....................................................    1545-0219
                                                               1545-0241
                                                               1545-0244
                                                               1545-0797
1.52-2.....................................................    1545-0219
1.52-3.....................................................    1545-0219
1.56-1.....................................................    1545-0123
1.56(g)-1..................................................    1545-1233
1.56A-1....................................................    1545-0227
1.56A-2....................................................    1545-0227
1.56A-3....................................................    1545-0227
1.56A-4....................................................    1545-0227
1.56A-5....................................................    1545-0227
1.57-5.....................................................    1545-0227
1.58-1.....................................................    1545-0175
1.58-9(c)(5)(iii)(B).......................................    1545-1093
1.58-9(e)(3)...............................................    1545-1093
1.59-1.....................................................    1545-1903
1.61-2.....................................................    1545-0771
1.61-2T....................................................    1545-0771
1.61-4.....................................................    1545-0187
1.61-15....................................................    1545-0074
1.62-2.....................................................    1545-1148
1.63-1.....................................................    1545-0074
1.66-4.....................................................    1545-1770
1.67-2T....................................................    1545-0110
1.67-3T....................................................    1545-0118
1.67-3.....................................................    1545-1018
1.71-1T....................................................    1545-0074
1.72-4.....................................................    1545-0074
1.72-6.....................................................    1545-0074
1.72-9.....................................................    1545-0074
1.72-17....................................................    1545-0074
1.72-17A...................................................    1545-0074
1.72-18....................................................    1545-0074
1.74-1.....................................................    1545-1100
1.79-2.....................................................    1545-0074
1.79-3.....................................................    1545-0074
1.83-2.....................................................    1545-0074
1.83-5.....................................................    1545-0074
1.83-6.....................................................    1545-1448
1.103-10...................................................    1545-0123
                                                               1545-0940
1.103-15AT.................................................    1545-0720
1.103-18...................................................    1545-1226
1.103(n)-2T................................................    1545-0874
1.103(n)-4T................................................    1545-0874
1.103A-2...................................................    1545-0720
1.105-4....................................................    1545-0074
1.105-5....................................................    1545-0074
1.105-6....................................................    1545-0074
1.108-4....................................................    1545-1539
1.108-5....................................................    1545-1421
1.110-1....................................................    1545-1661
1.117-5....................................................    1545-0869
1.118-2....................................................    1545-1639
1.119-1....................................................    1545-0067
1.120-3....................................................    1545-0057
1.121-1....................................................    1545-0072
1.121-2....................................................    1545-0072
1.121-3....................................................    1545-0072
1.121-4....................................................    1545-0072
                                                               1545-0091
1.121-5....................................................    1545-0072
1.127-2....................................................    1545-0768
1.132-1T...................................................    1545-0771
1.132-2....................................................    1545-0771

[[Page 143]]

 
1.132-2T...................................................    1545-0771
1.132-5....................................................    1545-0771
1.132-5T...................................................    1545-0771
                                                               1545-1098
1.132-9(b).................................................    1545-1676
1.141-1....................................................    1545-1451
1.141-12...................................................    1545-1451
1.142-2....................................................    1545-1451
1.142(f)(4)-1..............................................    1545-1730
1.148-0....................................................    1545-1098
1.148-1....................................................    1545-1098
1.148-2....................................................    1545-1098
                                                               1545-1347
1.148-3....................................................    1545-1098
                                                               1545-1347
1.148-4....................................................    1545-1098
                                                               1545-1347
1.148-5....................................................    1545-1098
                                                               1545-1490
1.148-6....................................................    1545-1098
                                                               1545-1451
1.148-7....................................................    1545-1098
1.148-7....................................................    1545-1347
1.148-8....................................................    1545-1098
1.148-11...................................................    1545-1098
1.148-11...................................................    1545-1347
1.149(e)-1.................................................    1545-0720
1.150-1....................................................    1545-1347
1.151-1....................................................    1545-0074
1.152-3....................................................    1545-0071
                                                               1545-1783
1.152-4....................................................    1545-0074
1.152-4T...................................................    1545-0074
1.162-1....................................................    1545-0139
1.162-2....................................................    1545-0139
1.162-3....................................................    1545-0139
1.162-4....................................................    1545-0139
1.162-5....................................................    1545-0139
1.162-6....................................................    1545-0139
1.162-7....................................................    1545-0139
1.162-8....................................................    1545-0139
1.162-9....................................................    1545-0139
1.162-10...................................................    1545-0139
1.162-11...................................................    1545-0139
1.162-12...................................................    1545-0139
1.162-13...................................................    1545-0139
1.162-14...................................................    1545-0139
1.162-15...................................................    1545-0139
1.162-16...................................................    1545-0139
1.162-17...................................................    1545-0139
1.162-18...................................................    1545-0139
1.162-19...................................................    1545-0139
1.162-20...................................................    1545-0139
1.162-27...................................................    1545-1466
1.163-5....................................................    1545-0786
                                                               1545-1132
1.163-8T...................................................    1545-0995
1.163-10T..................................................    1545-0074
1.163-13...................................................    1545-1491
1.163(d)-1.................................................    1545-1421
1.165-1....................................................    1545-0177
1.165-2....................................................    1545-0177
1.165-3....................................................    1545-0177
1.165-4....................................................    1545-0177
1.165-5....................................................    1545-0177
1.165-6....................................................    1545-0177
1.165-7....................................................    1545-0177
1.165-8....................................................    1545-0177
1.165-9....................................................    1545-0177
1.165-10...................................................    1545-0177
1.165-11...................................................    1545-0074
                                                               1545-0177
                                                               1545-0786
1.165-12...................................................    1545-0786
1.166-1....................................................    1545-0123
1.166-2....................................................    1545-1254
1.166-4....................................................    1545-0123
1.166-10...................................................    1545-0123
1.167(a)-5T................................................    1545-1021
1.167(a)-7.................................................    1545-0172
1.167(a)-11................................................    1545-0152
                                                               1545-0172
1.167(a)-12................................................    1545-0172
1.167(d)-1.................................................    1545-0172
1.167(e)-1.................................................    1545-0172
1.167(f)-11................................................    1545-0172
1.167(l)-1.................................................    1545-0172
1.168(d)-1.................................................    1545-1146
1.168(f)(8)-1T.............................................    1545-0923
1.168(i)-1.................................................    1545-1331
1.168-5....................................................    1545-0172
1.169-4....................................................    1545-0172
1.170-1....................................................    1545-0074
1.170-2....................................................    1545-0074
1.170-3....................................................    1545-0123
1.170A-1...................................................    1545-0074
1.170A-2...................................................    1545-0074
1.170A-4(A)(b).............................................    1545-0123
1.170A-8...................................................    1545-0074
1.170A-9...................................................    1545-0052
                                                               1545-0074
1.170A-11..................................................    1545-0123
                                                               1545-0074
1.170A-11T.................................................    1545-1868
1.170A-12..................................................    1545-0020
                                                               1545-0074
1.170A-13..................................................    1545-0074
                                                               1545-0754
                                                               1545-0908
                                                               1545-1431
1.170A-13(f)...............................................    1545-1464
1.170A-14..................................................    1545-0763
1.171-4....................................................    1545-1491
1.171-5....................................................    1545-1491
1.172-1....................................................    1545-0172
1.172-13...................................................    1545-0863
1.173-1....................................................    1545-0172
1.174-3....................................................    1545-0152
1.174-4....................................................    1545-0152
1.175-3....................................................    1545-0187
1.175-6....................................................    1545-0152
1.177-1....................................................    1545-0172
1.179-2....................................................    1545-1201
1.179-2T...................................................    1545-1201
1.179-3....................................................    1545-1201
1.179-5....................................................    1545-0172
1.179-5T...................................................    1545-1201
1.180-2....................................................    1545-0074
1.182-6....................................................    1545-0074
1.183-1....................................................    1545-0195
1.183-2....................................................    1545-0195
1.183-3....................................................    1545-0195
1.183-4....................................................    1545-0195
1.190-3....................................................    1545-0074
1.194-2....................................................    1545-0735
1.194-4....................................................    1545-0735
1.195-1....................................................    1545-1582
1.197-1T...................................................    1545-1425
1.197-2....................................................    1545-1671
1.213-1....................................................    1545-0074
1.215-1T...................................................    1545-0074
1.217-2....................................................    1545-0182
1.243-3....................................................    1545-0123
1.243-4....................................................    1545-0123

[[Page 144]]

 
1.243-5....................................................    1545-0123
1.248-1....................................................    1545-0172
1.261-1....................................................    1545-1041
1.263(a)-5.................................................    1545-1870
1.263(e)-1.................................................    1545-0123
1.263A-1...................................................    1545-0987
1.263A-1T..................................................    1545-0187
1.263A-2...................................................    1545-0987
1.263A-3...................................................    1545-0987
                                                               1545-0987
1.263A-8(b)(2)(iii)........................................    1545-1265
1.263A-9(d)(1).............................................    1545-1265
1.263A-9(f)(1)(ii).........................................    1545-1265
1.263A-9(f)(2)(iv).........................................    1545-1265
1.263A-9(g)(2)(iv)(C)......................................    1545-1265
1.263A-9(g)(3)(iv).........................................    1545-1265
1.265-1....................................................    1545-0074
1.265-2....................................................    1545-0123
1.266-1....................................................    1545-0123
1.267(f)-1.................................................    1545-0885
1.268-1....................................................    1545-0184
1.274-1....................................................    1545-0139
1.274-2....................................................    1545-0139
1.274-3....................................................    1545-0139
1.274-4....................................................    1545-0139
1.274-5....................................................    1545-0771
1.274-5A...................................................    1545-0139
                                                               1545-0771
1.274-5T...................................................    1545-0074
                                                               1545-0172
                                                               1545-0771
1.274-6....................................................    1545-0139
                                                               1545-0771
1.274-6T...................................................    1545-0074
                                                               1545-0771
1.274-7....................................................    1545-0139
1.274-8....................................................    1545-0139
1.279-6....................................................    1545-0123
1.280C-4...................................................    1545-1155
1.280F-3T..................................................    1545-0074
1.280G-1...................................................    1545-1851
1.281-4....................................................    1545-0123
1.302-4....................................................    1545-0074
1.305-3....................................................    1545-0123
1.305-5....................................................    1545-1438
1.307-2....................................................    1545-0074
1.312-15...................................................    1545-0172
1.316-1....................................................    1545-0123
1.331-1....................................................    1545-0074
1.332-4....................................................    1545-0123
1.332-6....................................................    1545-0123
1.337(d)-1.................................................    1545-1160
1.337(d)-2.................................................    1545-1160
1.337(d)-2T................................................    1545-1774
1.337(d)-4.................................................    1545-1633
1.337(d)-5.................................................    1545-1672
1.337(d)-6.................................................    1545-1672
1.337(d)-7.................................................    1545-1672
1.338-2....................................................    1545-1658
1.338-5....................................................    1545-1658
1.338-10...................................................    1545-1658
1.338(h)(10)-1.............................................    1545-1658
1.341-7....................................................    1545-0123
1.351-3....................................................    1545-0074
1.355-5....................................................    1545-0123
1.362-2....................................................    1545-0123
1.367(a)-1T................................................    1545-0026
1.367(a)-2T................................................    1545-0026
1.367(a)-3.................................................    1545-0026
                                                               1545-1478
1.367(a)-6T................................................    1545-0026
1.367(a)-8.................................................    1545-1271
1.367(b)-1.................................................    1545-1271
1.367(b)-3T................................................    1545-1666
1.367(d)-1T................................................    1545-0026
1.367(e)-1.................................................    1545-1487
1.367(e)-2.................................................    1545-1487
1.368-1....................................................    1545-1691
1.368-3....................................................    1545-0123
1.371-1....................................................    1545-0123
1.371-2....................................................    1545-0123
1.374-3....................................................    1545-0123
1.381(b)-1.................................................    1545-0123
1.381(c)(4)-1..............................................    1545-0123
                                                               1545-0152
                                                               1545-0879
1.381(c)(5)-1..............................................    1545-0123
                                                               1545-0152
1.381(c)(6)-1..............................................    1545-0123
                                                               1545-0152
1.381(c)(8)-1..............................................    1545-0123
1.381(c)(10)-1.............................................    1545-0123
1.381(c)(11)-1(k)..........................................    1545-0123
1.381(c)(13)-1.............................................    1545-0123
1.381(c)(17)-1.............................................    1545-0045
1.381(c)(25)-1.............................................    1545-0045
1.382-1T...................................................    1545-0123
1.382-2....................................................    1545-0123
1.382-2T...................................................    1545-0123
1.382-3....................................................    1545-1281
                                                               1545-1345
1.382-4....................................................    1545-1120
1.382-6....................................................    1545-1381
1.382-8....................................................    1545-1434
1.382-9....................................................    1545-1260
                                                               1545-1120
                                                               1545-1275
                                                               1545-1324
1.382-91...................................................    1545-1260
                                                               1545-1324
1.383-1....................................................    1545-0074
                                                               1545-1120
1.401-1....................................................    1545-0020
                                                               1545-0197
                                                               1545-0200
                                                               1545-0534
                                                               1545-0710
1.401(a)-11................................................    1545-0710
1.401(a)-20................................................    1545-0928
1.401(a)-31................................................    1545-1341
1.401(a)-50................................................    1545-0710
1.401(a)(31)-1.............................................    1545-1341
1.401(b)-1.................................................    1545-0197
1.401(f)-1.................................................    1545-0710
1.401(k)-1.................................................    1545-1039
                                                               1545-1069
                                                               1545-1669
1.401(k)-2.................................................    1545-1669
1.401(k)-3.................................................    1545-1669
1.401(k)-4.................................................    1545-1669
1.401(m)-3.................................................    1545-1699
1.401(a)(9)-1..............................................    1545-1573
1.401(a)(9)-3..............................................    1545-1466
1.401(a)(9)-4..............................................    1545-1573
1.401-12(n)................................................    1545-0806
1.401-14...................................................    1545-0710
1.402(c)-2.................................................    1545-1341
1.402(f)-1.................................................    1545-1341
                                                               1545-1632
1.403(b)-1.................................................    1545-0710
1.403(b)-2.................................................    1545-1341
1.403(b)-3.................................................    1545-0996
1.404(a)-4.................................................    1545-0710
1.404(a)-12................................................    1545-0710

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1.404A-2...................................................    1545-0123
1.404A-6...................................................    1545-0123
1.408-2....................................................    1545-0390
1.408-5....................................................    1545-0747
1.408-6....................................................    1545-0203
                                                               1545-0390
1.408-7....................................................    1545-0119
1.408(q)-1.................................................    1545-1841
1.408A-2...................................................    1545-1616
1.408A-4...................................................    1545-1616
1.408A-5...................................................    1545-1616
1.408A-7...................................................    1545-1616
1.410(a)-2.................................................    1545-0710
1.410(d)-1.................................................    1545-0710
1.411(a)-11................................................    1545-1471
                                                               1545-1632
1.411(d)-4.................................................    1545-1545
1.411(d)-6.................................................    1545-1477
1.412(b)-5.................................................    1545-0710
1.412(c)(1)-2..............................................    1545-0710
1.412(c)(2)-1..............................................    1545-0710
1.412(c)(3)-2..............................................    1545-0710
1.414(c)-5.................................................    1545-0797
1.414(r)-1.................................................    1545-1221
1.415-2....................................................    1545-0710
1.415-6....................................................    1545-0710
1.417(a)(3)-1..............................................    1545-0928
1.417(e)-1.................................................    1545-1471
                                                               1545-1724
1.417(e)-1T................................................    1545-1471
1.419A(f)(6)-1.............................................    1545-1795
1.422-1....................................................    1545-0820
1.441-2....................................................    1545-1748
1.442-1....................................................    1545-0074
                                                               1545-0123
                                                               1545-0134
                                                               1545-0152
                                                               1545-0820
                                                               1545-1748
1.443-1....................................................    1545-0123
1.444-3T...................................................    1545-1036
1.444-4....................................................    1545-1591
1.446-1....................................................    1545-0074
                                                               1545-0152
1.446-4(d).................................................    1545-1412
1.448-1(g).................................................    1545-0152
1.448-1(h).................................................    1545-0152
1.448-1(i).................................................    1545-0152
1.448-2T...................................................    1545-0152
                                                               1545-1855
1.451-1....................................................    1545-0091
1.451-4....................................................    1545-0123
1.451-5....................................................    1545-0074
1.451-6....................................................    1545-0074
1.451-7....................................................    1545-0074
1.453-1....................................................    1545-0152
1.453-2....................................................    1545-0152
1.453-8....................................................    1545-0152
                                                               1545-0228
1.453-10...................................................    1545-0152
1.453A-1...................................................    1545-0152
                                                               1545-1134
1.453A-2...................................................    1545-0152
                                                               1545-1134
1.453A-3...................................................    1545-0963
1.454-1....................................................    1545-0074
1.455-2....................................................    1545-0152
1.455-6....................................................    1545-0123
1.456-2....................................................    1545-0123
1.456-6....................................................    1545-0123
1.456-7....................................................    1545-0123
1.457-8....................................................    1545-1580
1.458-1....................................................    1545-0879
1.458-2....................................................    1545-0152
1.460-1....................................................    1545-1650
1.460-6....................................................    1545-1031
                                                               1545-1572
                                                               1545-1732
1.461-1....................................................    1545-0074
1.461-2....................................................    1545-0096
1.461-4....................................................    1545-0917
1.461-5....................................................    1545-0917
1.463-1T...................................................    1545-0916
1.465-1T...................................................    1545-0712
1.466-1T...................................................    1545-0152
1.466-4....................................................    1545-0152
1.468A-3...................................................    1545-1269
                                                               1545-1378
                                                               1545-1511
1.468A-4...................................................    1545-0954
1.468A-7...................................................    1545-0954
1.468A-8...................................................    1545-1269
1.468B-1(j)................................................    1545-1299
1.468B-2(k)................................................    1545-1299
1.468B-2(l)................................................    1545-1299
1.468B-3(b)................................................    1545-1299
1.468B-3(e)................................................    1545-1299
1.468B-5(b)................................................    1545-1299
1.469-1....................................................    1545-1008
1.469-2T...................................................    1545-0712
                                                               1545-1091
1.469-4T...................................................    1545-0985
                                                               1545-1037
1.469-7....................................................    1545-1244
1.471-2....................................................    1545-0123
1.471-5....................................................    1545-0123
1.471-6....................................................    1545-0123
1.471-8....................................................    1545-0123
1.471-11...................................................    1545-0123
                                                               1545-0152
1.472-1....................................................    1545-0042
                                                               1545-0152
1.472-2....................................................    1545-0152
1.472-3....................................................    1545-0042
1.472-5....................................................    1545-0152
1.472-8....................................................    1545-0028
                                                               1545-0042
                                                               1545-1767
1.475(b)-4.................................................    1545-1496
1.481-4....................................................    1545-0152
1.481-5....................................................    1545-0152
1.482-1....................................................    1545-1364
1.482-4....................................................    1545-1364
1.482-7....................................................    1545-1364
                                                               1545-1794
1.501(a)-1.................................................    1545-0056
                                                               1545-0057
1.501(c)(3)-1..............................................    1545-0056
1.501(c)(9)-5..............................................    1545-0047
1.501(c)(17)-3.............................................    1545-0047
1.501(e)-1.................................................    1545-0814
1.503(c)-1.................................................    1545-0047
                                                               1545-0052
1.505(c)-1T................................................    1545-0916
1.507-1....................................................    1545-0052
1.507-2....................................................    1545-0052
1.508-1....................................................    1545-0052
                                                               1545-0056
1.509(a)-3.................................................    1545-0047
1.509(a)-5.................................................    1545-0047
1.509(c)-1.................................................    1545-0052
1.512(a)-1.................................................    1545-0687
1.512(a)-4.................................................    1545-0047
                                                               1545-0687

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1.521-1....................................................    1545-0051
                                                               1545-0058
1.527-2....................................................    1545-0129
1.527-5....................................................    1545-0129
1.527-6....................................................    1545-0129
1.527-9....................................................    1545-0129
1.528-8....................................................    1545-0127
1.533-2....................................................    1545-0123
1.534-2....................................................    1545-0123
1.542-3....................................................    1545-0123
1.545-2....................................................    1545-0123
1.545-3....................................................    1545-0123
1.547-2....................................................    1545-0045
                                                               1545-0123
1.547-3....................................................    1545-0123
1.551-4....................................................    1545-0074
1.552-3....................................................    1545-0099
1.552-4....................................................    1545-0099
1.552-5....................................................    1545-0099
1.556-2....................................................    1545-0704
1.561-1....................................................    1545-0044
1.561-2....................................................    1545-0123
1.562-3....................................................    1545-0123
1.563-2....................................................    1545-0123
1.564-1....................................................    1545-0123
1.565-1....................................................    1545-0043
                                                               1545-0123
1.565-2....................................................    1545-0043
1.565-3....................................................    1545-0043
1.565-5....................................................    1545-0043
1.565-6....................................................    1545-0043
1.585-1....................................................    1545-0123
1.585-3....................................................    1545-0123
1.585-8....................................................    1545-1290
1.586-2....................................................    1545-0123
1.593-1....................................................    1545-0123
1.593-6....................................................    1545-0123
1.593-6A...................................................    1545-0123
1.593-7....................................................    1545-0123
1.595-1....................................................    1545-0123
1.597-2....................................................    1545-1300
1.597-4....................................................    1545-1300
1.597-6....................................................    1545-1300
1.597-7....................................................    1545-1300
1.611-2....................................................    1545-0099
1.611-3....................................................    1545-0007
                                                               1545-0099
                                                               1545-1784
1.612-4....................................................    1545-0074
1.612-5....................................................    1545-0099
1.613-3....................................................    1545-0099
1.613-4....................................................    1545-0099
1.613-6....................................................    1545-0099
1.613-7....................................................    1545-0099
1.613A-3...................................................    1545-0919
1.613A-3(e)................................................    1545-1251
1.613A-3(l)................................................    1545-0919
1.613A-5...................................................    1545-0099
1.613A-6...................................................    1545-0099
1.614-2....................................................    1545-0099
1.614-3....................................................    1545-0099
1.614-5....................................................    1545-0099
1.614-6....................................................    1545-0099
1.614-8....................................................    1545-0099
1.617-1....................................................    1545-0099
1.617-3....................................................    1545-0099
1.617-4....................................................    1545-0099
1.631-1....................................................    1545-0007
1.631-2....................................................    1545-0007
1.641(b)-2.................................................    1545-0092
1.642(c)-1.................................................    1545-0092
1.642(c)-2.................................................    1545-0092
1.642(c)-5.................................................    1545-0074
1.642(c)-6.................................................    1545-0020
                                                               1545-0074
                                                               1545-0092
1.642(g)-1.................................................    1545-0092
1.642(i)-1.................................................    1545-0092
1.645-1....................................................    1545-1578
1.663(b)-2.................................................    1545-0092
1.664-1....................................................    1545-0196
1.664-1(a)(7)..............................................    1545-1536
1.664-2....................................................    1545-0196
1.664-3....................................................    1545-0196
1.664-4....................................................    1545-0020
                                                               1545-0196
1.665(a)-0A through
1.665(g)-2A................................................    1545-0192
1.666(d)-1A................................................    1545-0092
1.671-4....................................................    1545-1442
1.701-1....................................................    1545-0099
1.702-1....................................................    1545-0074
1.703-1....................................................    1545-0099
1.704-2....................................................    1545-1090
1.706-1....................................................    1545-0099
                                                               1545-0074
                                                               1545-0134
1.706-1T...................................................    1545-0099
1.707-3(c)(2)..............................................    1545-1243
1.707-5(a)(7)(ii)..........................................    1545-1243
1.707-6(c).................................................    1545-1243
1.707-8....................................................    1545-1243
1.708-1....................................................    1545-0099
1.732-1....................................................    1545-0099
                                                               1545-1588
1.736-1....................................................    1545-0074
1.743-1....................................................    1545-0074
                                                               1545-1588
1.751-1....................................................    1545-0074
                                                               1545-0099
                                                               1545-0941
1.752-5....................................................    1545-1090
1.754-1....................................................    1545-0099
1.755-1....................................................    1545-0099
1.761-2....................................................    1545-1338
1.801-1....................................................    1545-0123
                                                               1545-0128
1.801-3....................................................    1545-0123
1.801-5....................................................    1545-0128
1.801-8....................................................    1545-0128
1.804-4....................................................    1545-0128
1.811-2....................................................    1545-0128
1.812-2....................................................    1545-0128
1.815-6....................................................    1545-0128
1.818-4....................................................    1545-0128
1.818-5....................................................    1545-0128
1.818-8....................................................    1545-0128
1.819-2....................................................    1545-0128
1.821-1....................................................    1545-1027
1.821-3....................................................    1545-1027
1.821-4....................................................    1545-1027
1.822-5....................................................    1545-1027
1.822-6....................................................    1545-1027
1.822-8....................................................    1545-1027
1.822-9....................................................    1545-1027
1.823-2....................................................    1545-1027
1.823-5....................................................    1545-1027
1.823-6....................................................    1545-1027
1.825-1....................................................    1545-1027
1.826-1....................................................    1545-1027
1.826-2....................................................    1545-1027
1.826-3....................................................    1545-1027
1.826-4....................................................    1545-1027
1.826-6....................................................    1545-1027

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1.831-3....................................................    1545-0123
1.831-4....................................................    1545-0123
1.832-4....................................................    1545-1227
1.832-5....................................................    1545-0123
1.848-2(g)(8)..............................................    1545-1287
1.848-2(h)(3)..............................................    1545-1287
1.848-2(i)(4)..............................................    1545-1287
1.851-2....................................................    1545-1010
1.851-4....................................................    1545-0123
1.852-1....................................................    1545-0123
1.852-4....................................................    1545-0123
                                                               1545-0145
1.852-6....................................................    1545-0123
                                                               1545-0144
1.852-7....................................................    1545-0074
1.852-9....................................................    1545-0074
                                                               1545-0123
                                                               1545-0144
                                                               1545-0145
                                                               1545-1783
1.852-11...................................................    1545-1094
1.853-3....................................................    1545-0123
1.853-4....................................................    1545-0123
1.854-2....................................................    1545-0123
1.855-1....................................................    1545-0123
1.856-2....................................................    1545-0123
                                                               1545-1004
1.856-6....................................................    1545-0123
1.856-7....................................................    1545-0123
1.856-8....................................................    1545-0123
1.857-8....................................................    1545-0123
1.857-9....................................................    1545-0074
1.858-1....................................................    1545-0123
1.860-2....................................................    1545-0045
1.860-4....................................................    1545-0045
                                                               1545-1054
                                                               1545-1057
1.860E-1...................................................    1545-1675
1.860E-2(a)(5).............................................    1545-1276
1.860E-2(a)(7).............................................    1545-1276
1.860E-2(b)(2).............................................    1545-1276
1.861-2....................................................    1545-0089
1.861-3....................................................    1545-0089
1.861-8....................................................    1545-0126
1.861-8(e)(6) and (g)......................................    1545-1224
1.861-9T...................................................    1545-0121
                                                               1545-1072
1.861-18...................................................    1545-1594
1.863-1....................................................    1545-1476
1.863-3....................................................    1545-1476
                                                               1545-1556
1.863-3A...................................................    1545-0126
1.863-4....................................................    1545-0126
1.863-7....................................................    1545-0132
1.864-4....................................................    1545-0126
1.871-1....................................................    1545-0096
1.871-6....................................................    1545-0795
1.871-7....................................................    1545-0089
1.871-10...................................................    1545-0089
                                                               1545-0165
1.874-1....................................................    1545-0089
1.881-4....................................................    1545-1440
1.882-4....................................................    1545-0126
1.883-1....................................................    1545-1677
1.883-2....................................................    1545-1677
1.883-3....................................................    1545-1677
1.883-4....................................................    1545-1677
1.883-5....................................................    1545-1677
1.884-0....................................................    1545-1070
1.884-1....................................................    1545-1070
1.884-2....................................................    1545-1070
1.884-2T...................................................    1545-0126
                                                               1545-1070
1.884-4....................................................    1545-1070
1.884-5....................................................    1545-1070
1.892-1T...................................................    1545-1053
1.892-2T...................................................    1545-1053
1.892-3T...................................................    1545-1053
1.892-4T...................................................    1545-1053
1.892-5T...................................................    1545-1053
1.892-6T...................................................    1545-1053
1.892-7T...................................................    1545-1053
1.897-2....................................................    1545-0123
                                                               1545-0902
1.897-3....................................................    1545-0123
1.897-5T...................................................    1545-0902
1.897-6T...................................................    1545-0902
1.901-2....................................................    1545-0746
1.901-2A...................................................    1545-0746
1.901-3....................................................    1545-0122
1.902-1....................................................    1545-0122
                                                               1545-1458
1.904-1....................................................    1545-0121
                                                               1545-0122
1.904-2....................................................    1545-0121
                                                               1545-0122
1.904-3....................................................    1545-0121
1.904-4....................................................    1545-0121
1.904-5....................................................    1545-0121
1.904(f)-1.................................................    1545-0121
                                                               1545-0122
1.904(f)-2.................................................    1545-0121
1.904(f)-3.................................................    1545-0121
1.904(f)-4.................................................    1545-0121
1.904(f)-5.................................................    1545-0121
1.904(f)-6.................................................    1545-0121
1.904(f)-7.................................................    1545-1127
1.905-2....................................................    1545-0122
1.905-3T...................................................    1545-1056
1.905-4T...................................................    1545-1056
1.905-5T...................................................    1545-1056
1.911-1....................................................    1545-0067
                                                               1545-0070
1.911-2....................................................    1545-0067
                                                               1545-0070
1.911-3....................................................    1545-0067
                                                               1545-0070
1.911-4....................................................    1545-0067
                                                               1545-0070
1.911-5....................................................    1545-0067
                                                               1545-0070
1.911-6....................................................    1545-0067
                                                               1545-0070
1.911-7....................................................    1545-0067
                                                               1545-0070
1.913-13...................................................    1545-0067
1.921-1T...................................................    1545-0190
                                                               1545-0884
                                                               1545-0935
                                                               1545-0939
1.921-2....................................................    1545-0884
1.921-3T...................................................    1545-0935
1.923-1T...................................................    1545-0935
1.924(a)-1T................................................    1545-0935
1.925(a)-1T................................................    1545-0935
1.925(b)-1T................................................    1545-0935
1.926(a)-1T................................................    1545-0935
1.927(a)-1T................................................    1545-0935
1.927(b)-1T................................................    1545-0935
1.927(d)-1.................................................    1545-0884
1.927(d)-2T................................................    1545-0935
1.927(e)-1T................................................    1545-0935
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1.6164-3...................................................    1545-0135
1.6164-5...................................................    1545-0135
1.6164-6...................................................    1545-0135
1.6164-7...................................................    1545-0135
1.6164-8...................................................    1545-0135
1.6164-9...................................................    1545-0135
1.6302-1...................................................    1545-0257
1.6302-2...................................................    1545-0098
                                                               1545-0257
1.6411-1...................................................    1545-0098
                                                               1545-0135
                                                               1545-0582
1.6411-2...................................................    1545-0098
                                                               1545-0582
1.6411-3...................................................    1545-0098
                                                               1545-0582
1.6411-4...................................................    1545-0582
1.6414-1...................................................    1545-0096
1.6425-1...................................................    1545-0170
1.6425-2...................................................    1545-0170
1.6425-3...................................................    1545-0170
1.6654-1...................................................    1545-0087
                                                               1545-0140
1.6654-2...................................................    1545-0087
1.6654-3...................................................    1545-0087
1.6654-4...................................................    1545-0087
1.6655-1...................................................    1545-0142
1.6655-2...................................................    1545-0142
1.6655-3...................................................    1545-0142
1.6655-7...................................................    1545-0123
1.6655(e)-1................................................    1545-1421
1.6662-3(c)................................................    1545-0889
1.6662-4(e) and (f)........................................    1545-0889
1.6662-6...................................................    1545-1426

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1.6694-1...................................................    1545-0074
1.6694-2...................................................    1545-0074
1.6694-2(c)................................................    1545-1231
1.6694-3(e)................................................    1545-1231
1.6695-1...................................................    1545-0074
                                                               1545-1385
1.6695-2...................................................    1545-1570
1.6696-1...................................................    1545-0074
                                                               1545-0240
1.6851-1...................................................    1545-0086
                                                               1545-0138
1.6851-2...................................................    1545-0086
                                                               1545-0138
1.7476-1...................................................    1545-0197
1.7476-2...................................................    1545-0197
1.7519-2T..................................................    1545-1036
1.7520-1...................................................    1545-1343
1.7520-2...................................................    1545-1343
1.7520-3...................................................    1545-1343
1.7520-4...................................................    1545-1343
1.7701(l)-3................................................    1545-1642
1.7872-15..................................................    1545-1792
1.9100-1...................................................    1545-0074
1.9101-1...................................................    1545-0008
2.1-4......................................................    1545-0123
2.1-5......................................................    1545-0123
2.1-6......................................................    1545-0123
2.1-10.....................................................    1545-0123
2.1-11.....................................................    1545-0123
2.1-12.....................................................    1545-0123
2.1-13.....................................................    1545-0123
2.1-20.....................................................    1545-0123
2.1-22.....................................................    1545-0123
2.1-26.....................................................    1545-0123
3.2........................................................    1545-0123
4.954-1....................................................    1545-1068
4.954-2....................................................    1545-1068
5.6411-1...................................................    1545-0098
                                                               1545-0582
                                                               1545-0042
                                                               1545-0074
                                                               1545-0129
                                                               1545-0172
                                                               1545-0619
5c.44F-1...................................................    1545-0619
5c.128-1...................................................    1545-0123
5c.168(f)(8)-1.............................................    1545-0123
5c.168(f)(8)-2.............................................    1545-0123
5c.168(f)(8)-6.............................................    1545-0123
5c.168(f)(8)-8.............................................    1545-0123
5c.305-1...................................................    1545-0110
5c.442-1...................................................    1545-0152
5f.103-1...................................................    1545-0720
5f.103-3...................................................    1545-0720
5f.6045-1..................................................    1545-0715
6a.103A-2..................................................    1545-0123
                                                               1545-0720
6a.103A-3..................................................    1545-0720
7.465-1....................................................    1545-0712
7.465-2....................................................    1545-0712
7.465-3....................................................    1545-0712
7.465-4....................................................    1545-0712
7.465-5....................................................    1545-0712
7.936-1....................................................    1545-0217
7.999-1....................................................    1545-0216
7.6039A-1..................................................    1545-0015
7.6041-1...................................................    1545-0115
11.410-1...................................................    1545-0710
11.412(c)-7................................................    1545-0710
11.412(c)-11...............................................    1545-0710
12.7.......................................................    1545-0190
12.8.......................................................    1545-0191
12.9.......................................................    1545-0195
14a.422A-1.................................................    1545-0123
15A.453-1..................................................    1545-0228
16.3-1.....................................................    1545-0159
16A.126-2..................................................    1545-0074
16A.1255-1.................................................    1545-0184
16A.1255-2.................................................    1545-0184
18.1371-1..................................................    1545-0130
18.1378-1..................................................    1545-0130
18.1379-1..................................................    1545-0130
18.1379-2..................................................    1545-0130
20.2011-1..................................................    1545-0015
20.2014-5..................................................    1545-0015
                                                               1545-0260
20.2014-6..................................................    1545-0015
20.2016-1..................................................    1545-0015
20.2031-2..................................................    1545-0015
20.2031-3..................................................    1545-0015
20.2031-4..................................................    1545-0015
20.2031-6..................................................    1545-0015
20.2031-7..................................................    1545-0020
20.2031-10.................................................    1545-0015
20.2032-1..................................................    1545-0015
20.2032A-3.................................................    1545-0015
20.2032A-4.................................................    1545-0015
20.2032A-8.................................................    1545-0015
20.2039-4..................................................    1545-0015
20.2051-1..................................................    1545-0015
20.2053-3..................................................    1545-0015
20.2053-9..................................................    1545-0015
20.2053-10.................................................    1545-0015
20.2055-1..................................................    1545-0015
20.2055-2..................................................    1545-0015
                                                               1545-0092
20.2055-3..................................................    1545-0015
20.2056(b)-4...............................................    1545-0015
20.2056(b)-7...............................................    1545-0015
                                                               1545-1612
20.2056A-2.................................................    1545-1443
20.2056A-3.................................................    1545-1360
20.2056A-4.................................................    1545-1360
20.2056A-10................................................    1545-1360
20.2106-1..................................................    1545-0015
20.2106-2..................................................    1545-0015
20.2204-1..................................................    1545-0015
20.2204-2..................................................    1545-0015
20.6001-1..................................................    1545-0015
20.6011-1..................................................    1545-0015
20.6018-1..................................................    1545-0015
                                                               1545-0531
20.6018-2..................................................    1545-0015
20.6018-3..................................................    1545-0015
20.6018-4..................................................    1545-0015
                                                               1545-0022
20.6036-2..................................................    1545-0015
20.6061-1..................................................    1545-0015
20.6065-1..................................................    1545-0015
20.6075-1..................................................    1545-0015
20.6081-1..................................................    1545-0015
                                                               1545-0181
                                                               1545-1707
20.6091-1..................................................    1545-0015
20.6161-1..................................................    1545-0015
                                                               1545-0181
20.6161-2..................................................    1545-0015
                                                               1545-0181
20.6163-1..................................................    1545-0015
20.6166-1..................................................    1545-0181
20.6166A-1.................................................    1545-0015
20.6166A-3.................................................    1545-0015
20.6324A-1.................................................    1545-0754
20.7520-1..................................................    1545-1343

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20.7520-2..................................................    1545-1343
20.7520-3..................................................    1545-1343
20.7520-4..................................................    1545-1343
22.0.......................................................    1545-0015
25.2511-2..................................................    1545-0020
25.2512-2..................................................    1545-0020
25.2512-3..................................................    1545-0020
25.2512-5..................................................    1545-0020
25.2512-9..................................................    1545-0020
25.2513-1..................................................    1545-0020
25.2513-2..................................................    1545-0020
                                                               1545-0021
25.2513-3..................................................    1545-0020
25.2518-2..................................................    1545-0959
25.2522(a)-1...............................................    1545-0196
25.2522(c)-3...............................................    1545-0020
                                                               1545-0196
25.2523(a)-1...............................................    1545-0020
                                                               1545-0196
25.2523(f)-1...............................................    1545-0015
25.2701-2..................................................    1545-1241
25.2701-4..................................................    1545-1241
25.2701-5..................................................    1545-1273
25.2702-5..................................................    1545-1485
25.2702-6..................................................    1545-1273
25.6001-1..................................................    1545-0020
                                                               1545-0022
25.6011-1..................................................    1545-0020
25.6019-1..................................................    1545-0020
25.6019-2..................................................    1545-0020
25.6019-3..................................................    1545-0020
25.6019-4..................................................    1545-0020
25.6061-1..................................................    1545-0020
25.6065-1..................................................    1545-0020
25.6075-1..................................................    1545-0020
25.6081-1..................................................    1545-0020
25.6091-1..................................................    1545-0020
25.6091-2..................................................    1545-0020
25.6151-1..................................................    1545-0020
25.6161-1..................................................    1545-0020
25.7520-1..................................................    1545-1343
25.7520-2..................................................    1545-1343
25.7520-3..................................................    1545-1343
25.7520-4..................................................    1545-1343
26.2601-1..................................................    1545-0985
26.2632-1..................................................    1545-0985
26.2642-1..................................................    1545-0985
26.2642-2..................................................    1545-0985
26.2642-3..................................................    1545-0985
26.2642-4..................................................    1545-0985
26.2652-2..................................................    1545-0985
26.2662-1..................................................    1545-0015
                                                               1545-0985
26.2662-2..................................................    1545-0985
31.3102-3..................................................    1545-0029
                                                               1545-0059
                                                               1545-0065
31.3121(b)(19)-1...........................................    1545-0029
31.3121(d)-1...............................................    1545-0004
31.3121(i)-1...............................................    1545-0034
31.3121(k)-4...............................................    1545-0137
31.3121(r)-1...............................................    1545-0029
31.3121(s)-1...............................................    1545-0029
31.3121(v)(2)-1............................................    1545-1643
31.3302(a)-2...............................................    1545-0028
31.3302(a)-3...............................................    1545-0028
31.3302(b)-2...............................................    1545-0028
31.3302(e)-1...............................................    1545-0028
31.3306(c)(18)-1...........................................    1545-0029
31.3401(a)-1...............................................    1545-0029
31.3401(a)(6)..............................................    1545-1484
31.3401(a)(6)-1............................................    1545-0029
                                                               1545-0096
                                                               1545-0795
31.3401(a)(7)-1............................................    1545-0029
31.3401(a)(8)(A)-1 ........................................    1545-0029
                                                               1545-0666
31.3401(a)(8)(C)-1 ........................................    1545-0029
31.3401(a)(15)-1...........................................    1545-0182
31.3401(c)-1...............................................    1545-0004
31.3402(b)-1...............................................    1545-0010
31.3402(c)-1...............................................    1545-0010
31.3402(f)(1)-1............................................    1545-0010
31.3402(f)(2)-1............................................    1545-0010
                                                               1545-0410
31.3402(f)(3)-1............................................    1545-0010
31.3402(f)(4)-1............................................    1545-0010
31.3402(f)(4)-2............................................    1545-0010
31.3402(f)(5)-1............................................    1545-0010
                                                               1545-1435
31.3402(h)(1)-1............................................    1545-0029
31.3402(h)(3)-1............................................    1545-0010
31.3402(h)(3)-1............................................    1545-0029
31.3402(h)(4)-1............................................    1545-0010
31.3402(i)-(1).............................................    1545-0010
31.3402(i)-(2).............................................    1545-0010
31.3402(k)-1...............................................    1545-0065
31.3402(l)-(1).............................................    1545-0010
31.3402(m)-(1).............................................    1545-0010
31.3402(n)-(1).............................................    1545-0010
31.3402(o)-2...............................................    1545-0415
31.3402(o)-3...............................................    1545-0008
                                                               1545-0010
                                                               1545-0415
                                                               1545-0717
31.3402(p)-1...............................................    1545-0415
                                                               1545-0717
31.3402(q)-1...............................................    1545-0238
                                                               1545-0239
31.3404-1..................................................    1545-0029
31.3405(c)-1...............................................    1545-1341
31.3406(a)-1...............................................    1545-0112
31.3406(a)-2...............................................    1545-0112
31.3406(a)-3...............................................    1545-0112
31.3406(a)-4...............................................    1545-0112
31.3406(b)(2)-1............................................    1545-0112
31.3406(b)(2)-2............................................    1545-0112
31.3406(b)(2)-3............................................    1545-0112
31.3406(b)(2)-4............................................    1545-0112
31.3406(b)(2)-5............................................    1545-0112
31.3406(b)(3)-1............................................    1545-0112
31.3406(b)(3)-2............................................    1545-0112
31.3406(b)(3)-3............................................    1545-0112
31.3406(b)(3)-4............................................    1545-0112
31.3406(b)(4)-1............................................    1545-0112
31.3406(c)-1...............................................    1545-0112
31.3406(d)-1...............................................    1545-0112
31.3406(d)-2...............................................    1545-0112
31.3406(d)-3...............................................    1545-0112
31.3406(d)-4...............................................    1545-0112
31.3406(d)-5...............................................    1545-0112
31.3406(e)-1...............................................    1545-0112
31.3406(f)-1...............................................    1545-0112
31.3406(g)-1...............................................    1545-0096
                                                               1545-0112
                                                               1545-1819
31.3406(g)-2...............................................    1545-0112
31.3406(g)-3...............................................    1545-0112
31.3406(h)-1...............................................    1545-0112
31.3406(h)-2...............................................    1545-0112
31.3406(h)-3...............................................    1545-0112
31.3406(i)-1...............................................    1545-0112
31.3501(a)-1T..............................................    1545-0771
31.3503-1..................................................    1545-0024

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31.3504-1..................................................    1545-0029
31.6001-1..................................................    1545-0798
31.6001-2..................................................    1545-0034
                                                               1545-0798
31.6001-3..................................................    1545-0798
31.6001-4..................................................    1545-0028
31.6001-5..................................................    1545-0798
31.6001-6..................................................    1545-0029
                                                               1459-0798
31.6011(a)-1...............................................    1545-0029
                                                               1545-0034
                                                               1545-0035
                                                               1545-0059
                                                               1545-0074
                                                               1545-0718
                                                               1545-0256
31.6011(a)-2...............................................    1545-0001
                                                               1545-0002
31.6011(a)-3...............................................    1545-0028
31.6011(a)-3A..............................................    1545-0955
31.6011(a)-4...............................................    1545-0034
                                                               1545-0035
                                                               1545-0718
                                                               1545-1413
31.6011(a)-5...............................................    1545-0718
                                                               1545-0028
31.6011(a)-6...............................................    1545-0028
31.6011(a)-7...............................................    1545-0074
31.6011(a)-8...............................................    1545-0028
31.6011(a)-9...............................................    1545-0028
31.6011(a)-10..............................................    1545-0112
31.6011(b)-1...............................................    1545-0003
31.6011(b)-2...............................................    1545-0029
31.6051-1..................................................    1545-0008
                                                               1545-0182
                                                               1545-0458
                                                               1545-1729
31.6051-2..................................................    1545-0008
31.6051-3..................................................    1545-0008
31.6053-1..................................................    1545-0029
                                                               1545-0062
                                                               1545-0064
                                                               1545-0065
                                                               1545-1603
31.6053-2..................................................    1545-0008
31.6053-3..................................................    1545-0065
                                                               1545-0714
31.6053-4..................................................    1545-0065
                                                               1545-1603
31.6065(a)-1...............................................    1545-0029
31.6071(a)-1...............................................    1545-0001
                                                               1545-0028
                                                               1545-0029
31.6071(a)-1A..............................................    1545-0955
31.6081(a)-1...............................................    1545-0008
                                                               1545-0028
31.6091-1..................................................    1545-0028
                                                               1545-0029
31.6157-1..................................................    1545-0955
31.6205-1..................................................    1545-0029
31.6301(c)-1AT.............................................    1545-0035
                                                               1545-0112
                                                               1545-0257
31.6302-1..................................................    1545-1413
31.6302-2..................................................    1545-1413
31.6302-3..................................................    1545-1413
31.6302-4..................................................    1545-1413
31.6302(c)-2...............................................    1545-0001
                                                               1545-0257
31.6302(c)-2A..............................................    1545-0955
31.6302(c)-3...............................................    1545-0257
31.6402(a)-2...............................................    1545-0256
31.6413(a)-1...............................................    1545-0029
31.6413(a)-2...............................................    1545-0029
                                                               1545-0256
31.6413(c)-1...............................................    1545-0029
                                                               1545-0171
31.6414-1..................................................    1545-0029
32.1.......................................................    1545-0029
                                                               1545-0415
32.2.......................................................    1545-0029
35a.3406-2.................................................    1545-0112
35a.9999-5.................................................    1545-0029
36.3121(l)(1)-1............................................    1545-0137
36.3121(l)(1)-2............................................    1545-0137
36.3121(l)(3)-1............................................    1545-0123
36.3121(1)(7)-1............................................    1545-0123
36.3121(1)(10)-1...........................................    1545-0029
36.3121(1)(10)-3...........................................    1545-0029
36.3121(1)(10)-4...........................................    1545-0257
40.6302(c)-3(b)(2)(ii).....................................    1545-1296
40.6302(c)-3(b)(2)(iii)....................................    1545-1296
40.6302(c)-3(e)............................................    1545-1296
40.6302(c)-3(f)(2)(ii).....................................    1545-1296
41.4481-1..................................................    1545-0143
41.4481-2..................................................    1545-0143
41.4483-3..................................................    1545-0143
41.6001-1..................................................    1545-0143
41.6001-2..................................................    1545-0143
41.6001-3..................................................    1545-0143
41.6071(a)-1...............................................    1545-0143
41.6081(a)-1...............................................    1545-0143
41.6091-1..................................................    1545-0143
41.6109-1..................................................    1545-0143
41.6151(a)-1...............................................    1545-0143
41.6156-1..................................................    1545-0143
41.6161(a)(1)-1............................................    1545-0143
44.4401-1..................................................    1545-0235
44.4403-1..................................................    1545-0235
44.4412-1..................................................    1545-0236
44.4901-1..................................................    1545-0236
44.4905-1..................................................    1545-0236
44.4905-2..................................................    1545-0236
44.6001-1..................................................    1545-0235
44.6011(a)-1...............................................    1545-0235
                                                               1545-0236
44.6071-1..................................................    1545-0235
44.6091-1..................................................    1545-0235
44.6151-1..................................................    1545-0235
44.6419-1..................................................    1545-0235
44.6419-1..................................................    1545-0235
44.6419-2..................................................    1545-0235
46.4371-4..................................................    1545-0023
46.4374-1..................................................    1545-0023
46.4701-1..................................................    1545-0023
                                                               1545-0257
48.4041-4..................................................    1545-0023
48.4041-5..................................................    1545-0023
48.4041-6..................................................    1545-0023
48.4041-7..................................................    1545-0023
48.4041-9..................................................    1545-0023
48.4041-10.................................................    1545-0023
48.4041-11.................................................    1545-0023
48.4041-12.................................................    1545-0023
48.4041-13.................................................    1545-0023
48.4041-18.................................................    1545-0023
48.4041-19.................................................    1545-0023
48.4041-20.................................................    1545-0023
48.4041-21.................................................    1545-1270
48.4042-2..................................................    1545-0023
48.4052-1..................................................    1545-1418
48.4061(a)-1...............................................    1545-0023
48.4061(a)-2...............................................    1545-0023
48.4061(b)-3...............................................    1545-0023

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48.4064-1..................................................    1545-0014
                                                               1545-0242
48.4071-1..................................................    1545-0023
48.4073-1..................................................    1545-0023
48.4073-3..................................................    1545-0023
                                                               1545-1074
                                                               1545-1087
48.4081-2..................................................    1545-1270
                                                               1545-1418
48.4081-3..................................................    1545-1270
                                                               1545-1418
48.4081-3T.................................................    1545-1897
48.4081-4(b)(2)(ii)........................................    1545-1270
48.4081-4(b)(3)(i).........................................    1545-1270
48.4081-4(c)...............................................    1545-1270
48.4081-6(c)(1)(ii)........................................    1545-1270
48.4081-7..................................................    1545-1270
                                                               1545-1418
48.4082-2..................................................    1545-1418
48.4082-6..................................................    1545-1418
48.4082-7..................................................    1545-1418
48.4091-3..................................................    1545-1418
48.4101-1..................................................    1545-1418
48.4101-2..................................................    1545-1418
48.4161(a)-1...............................................    1545-0723
48.4161(a)-2...............................................    1545-0723
48.4161(a)-3...............................................    1545-0723
48.4161(b)-1...............................................    1545-0723
                                                               1545-0723
48.4216(a)-2...............................................    1545-0023
48.4216(a)-3...............................................    1545-0023
48.4216(c)-1...............................................    1545-0023
48.4221-1..................................................    1545-0023
48.4221-2..................................................    1545-0023
48.4221-3..................................................    1545-0023
48.4221-4..................................................    1545-0023
48.4221-5..................................................    1545-0023
48.4221-6..................................................    1545-0023
48.4221-7..................................................    1545-0023
48.4222(a)-1...............................................    1545-0023
                                                               1545-0014
48.4223-1..................................................    1545-0023
                                                               1545-0723
                                                               1545-0723
                                                               1545-0723
                                                               1545-0257
48.6302(c)-1...............................................    1545-0023
                                                               1545-0257
48.6412-1..................................................    1545-0723
48.6416(a)-1...............................................    1545-0023
                                                               1545-0723
48.6416(a)-2...............................................    1545-0723
48.6416(a)-3...............................................    1545-0723
48.6416(b)(2)-3............................................    1545-1087
48.6416(b)(1)-1............................................    1545-0723
48.6416(b)(1)-2............................................    1545-0723
48.6416(b)(1)-3............................................    1545-0723
48.6416(b)(1)-4............................................    1545-0723
48.6416(b)(2)-1............................................    1545-0723
48.6416(b)(2)-2............................................    1545-0723
48.6416(b)(2)-3............................................    1545-0723
                                                               1545-1087
48.6416(b)(2)-4............................................    1545-0723
48.6416(b)(3)-1............................................    1545-0723
48.6416(b)(3)-2............................................    1545-0723
48.6416(b)(3)-3............................................    1545-0723
48.6416(b)(4)-1............................................    1545-0723
48.6416(b)(5)-1............................................    1545-0723
48.6416(c)-1...............................................    1545-0723
48.6416(e)-1...............................................    1545-0023
                                                               1545-0723
48.6416(f)-1...............................................    1545-0023
                                                               1545-0723
48.6416(g)-1...............................................    1545-0723
48.6416(h)-1...............................................    1545-0723
48.6420(c)-2...............................................    1545-0023
48.6420(f)-1...............................................    1545-0023
48.6420-1..................................................    1545-0162
                                                               1545-0723
48.6420-2..................................................    1545-0162
                                                               1545-0723
48.6420-3..................................................    1545-0162
                                                               1545-0723
48.6420-4..................................................    1545-0162
                                                               1545-0723
48.6420-5..................................................    1545-0162
                                                               1545-0723
48.6420-6..................................................    1545-0162
                                                               1545-0723
48.6421-0..................................................    1545-0162
                                                               1545-0723
48.6421-1..................................................    1545-0162
                                                               1545-0723
48.6421-2..................................................    1545-0162
                                                               1545-0723
48.6421-3..................................................    1545-0162
                                                               1545-0723
48.6421-4..................................................    1545-0162
                                                               1545-0723
48.6421-5..................................................    1545-0162
                                                               1545-0723
48.6421-6..................................................    1545-0162
                                                               1545-0723
48.6421-7..................................................    1545-0162
                                                               1545-0723
48.6424-0..................................................    1545-0723
48.6424-1..................................................    1545-0723
48.6424-2..................................................    1545-0723
48.6424-3..................................................    1545-0723
48.6424-4..................................................    1545-0723
48.6424-5..................................................    1545-0723
48.6424-6..................................................    1545-0723
48.6427-0..................................................    1545-0723
48.6427-1..................................................    1545-0023
                                                               1545-0162
                                                               1545-0723
48.6427-2..................................................    1545-0162
                                                               1545-0723
48.6427-3..................................................    1545-0723
48.6427-4..................................................    1545-0723
48.6427-5..................................................    1545-0723
48.6427-8..................................................    1545-1418
48.6427-9..................................................    1545-1418
48.6427-10.................................................    1545-1418
48.6427-11.................................................    1545-1418
49.4251-1..................................................    1545-1075
49.4251-2..................................................    1545-1075
49.4251-4(d)(2)............................................    1545-1628
49.4253-3..................................................    1545-0023
49.4253-4..................................................    1545-0023
49.4264(b)-1...............................................    1545-0023
                                                               1545-0226
                                                               1545-0226
                                                               1545-0912
                                                               1545-0912
                                                               1545-0257
                                                               1545-0230
                                                               1545-0224
                                                               1545-0225
                                                               1545-0224
                                                               1545-0230
49.4271-1(d)...............................................    1545-0685
52.4682-1(b)(2)(iii).......................................    1545-1153
52.4682-2(b)...............................................    1545-1153

[[Page 156]]

 
                                                               1545-1361
52.4682-2(d)...............................................    1545-1153
                                                               1545-1361
52.4682-3(c)(2)............................................    1545-1153
52.4682-3(g)...............................................    1545-1153
52.4682-4(f)...............................................    1545-1153
                                                               1545-0257
52.4682-5(d)...............................................    1545-1361
52.4682-5(f)...............................................    1545-1361
53.4940-1..................................................    1545-0052
                                                               1545-0196
53.4942(a)-1...............................................    1545-0052
53.4942(a)-2...............................................    1545-0052
53.4942(a)-3...............................................    1545-0052
53.4942(b)-3...............................................    1545-0052
53.4945-1..................................................    1545-0052
53.4945-4..................................................    1545-0052
53.4945-5..................................................    1545-0052
53.4945-6..................................................    1545-0052
53.4947-1..................................................    1545-0196
53.4947-2..................................................    1545-0196
53.4948-1..................................................    1545-0052
53.4958-6..................................................    1545-1623
53.4961-2..................................................    1545-0024
53.4963-1..................................................    1545-0024
53.6001-1..................................................    1545-0052
53.6011-1..................................................    1545-0049
                                                               1545-0052
                                                               1545-0092
                                                               1545-0196
53.6065-1..................................................    1545-0052
53.6071-1..................................................    1545-0049
53.6081-1..................................................    1545-0066
                                                               1545-0148
53.6161-1..................................................    1545-0575
54.4972-1..................................................    1545-0197
54.4975-7..................................................    1545-0575
54.4977-1T.................................................    1545-0771
54.4980B-6.................................................    1545-1581
54.4980B-7.................................................    1545-1581
54.4980B-8.................................................    1545-1581
54.4980F-1.................................................    1545-1780
54.4981A-1T................................................    1545-0203
54.6011-1..................................................    1545-0575
54.6011-1T.................................................    1545-0575
54.9801-3..................................................    1545-1537
54.9801-4..................................................    1545-1537
54.9801-5..................................................    1545-1537
54.9801-6..................................................    1545-1537
55.6001-1..................................................    1545-0123
55.6011-1..................................................    1545-0999
                                                               1545-0123
                                                               1545-1016
55.6061-1..................................................    1545-0999
55.6071-1..................................................    1545-0999
56.4911-6..................................................    1545-0052
56.4911-7..................................................    1545-0052
56.4911-9..................................................    1545-0052
56.4911-10.................................................    1545-0052
56.6001-1..................................................    1545-1049
56.6011-1..................................................    1545-1049
56.6081-1..................................................    1545-1049
56.6161-1..................................................    1545-1049
                                                               1545-0257
145.4051-1.................................................    1545-0745
145.4052-1.................................................    1545-0120
                                                               1545-0745
                                                               1545-1076
                                                               1545-0745
                                                               1545-1076
145.4061-1.................................................    1545-0745
                                                               1545-0257
                                                               1545-0230
                                                               1545-0224
156.6001-1.................................................    1545-1049
156.6011-1.................................................    1545-1049
156.6081-1.................................................    1545-1049
156.6161-1.................................................    1545-1049
157.6001-1.................................................    1545-1824
157.6011-1.................................................    1545-1824
157.6081-1.................................................    1545-1824
157.6161-1.................................................    1545-1824
301.6011-2.................................................    1545-0225
                                                               1545-0350
                                                               1545-0387
                                                               1545-0441
                                                               1545-0957
301.6017-1.................................................    1545-0090
301.6034-1.................................................    1545-0092
301.6035-1.................................................    1545-0123
301.6036-1.................................................    1545-0013
                                                               1545-0773
301.6047-1.................................................    1545-0367
                                                               1545-0957
301.6057-1.................................................    1545-0710
301.6057-2.................................................    1545-0710
301.6058-1.................................................    1545-0710
301.6059-1.................................................    1545-0710
301.6103(c)-1..............................................    1545-1816
301.6103(n)-1..............................................    1545-1841
301.6103(p)(2)(B)-1........................................    1545-1757
301.6104(a)-1..............................................    1545-0495
301.6104(a)-5..............................................    1545-0056
301.6104(a)-6..............................................    1545-0056
301.6104(b)-1..............................................    1545-0094
                                                               1545-0742
301.6104(d)-1..............................................    1545-1655
301.6104(d)-2..............................................    1545-1655
301.6104(d)-3..............................................    1545-1655
301.6109-1.................................................    1545-0003
                                                               1545-0295
                                                               1545-0367
                                                               1545-0387
                                                               1545-0957
                                                               1545-1461
301.6109-3.................................................    1545-1564
301.6110-3.................................................    1545-0074
301.6110-5.................................................    1545-0074
301.6111-1T................................................    1545-0865
                                                               1545-0881
301.6111-2.................................................    1545-0865
                                                               1545-1687
301.6112-1.................................................    1545-0865
                                                               1545-1686
301.6112-1T................................................    1545-0865
                                                               1545-1686
301.6114-1.................................................    1545-1126
                                                               1545-1484
301.6222(a)-2..............................................    1545-0790
301.6222(b)-1..............................................    1545-0790
301.6222(b)-2..............................................    1545-0790
301.6222(b)-3..............................................    1545-0790
301.6223(b)-1..............................................    1545-0790
301.6223(c)-1..............................................    1545-0790
301.6223(e)-2..............................................    1545-0790
301.6223(g)-1..............................................    1545-0790
301.6223(h)-1..............................................    1545-0790
301.6224(b)-1..............................................    1545-0790
301.6224(c)-1..............................................    1545-0790
301.6224(c)-3..............................................    1545-0790
301.6227(c)-1..............................................    1545-0790
301.6227(d)-1..............................................    1545-0790
301.6229(b)-2..............................................    1545-0790
301.6230(b)-1..............................................    1545-0790

[[Page 157]]

 
301.6230(e)-1..............................................    1545-0790
301.6231(a)(1)-1...........................................    1545-0790
301.6231(a)(7)-1...........................................    1545-0790
301.6231(c)-1..............................................    1545-0790
301.6231(c)-2..............................................    1545-0790
301.6241-1T................................................    1545-0130
301.6316-4.................................................    1545-0074
301.6316-5.................................................    1545-0074
301.6316-6.................................................    1545-0074
301.6316-7.................................................    1545-0029
301.6324A-1................................................    1545-0015
301.6361-1.................................................    1545-0074
                                                               1545-0024
301.6361-2.................................................    1545-0024
301.6361-3.................................................    1545-0074
301.6402-2.................................................    1545-0024
                                                               1545-0073
                                                               1545-0091
301.6402-3.................................................    1545-0055
                                                               1545-0073
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301.6402-5.................................................    1545-0928
301.6404-1.................................................    1545-0024
301.6404-2T................................................    1545-0024
301.6404-3.................................................    1545-0024
301.6405-1.................................................    1545-0024
301.6501(c)-1..............................................    1545-1241
                                                               1545-1637
301.6501(d)-1..............................................    1545-0074
                                                               1545-0430
301.6501(o)-2..............................................    1545-0728
301.6511(d)-1..............................................    1545-0582
                                                               1545-0024
301.6511(d)-2..............................................    1545-0582
                                                               1545-0024
301.6511(d)-3..............................................    1545-0024
                                                               1545-0582
301.6652-2.................................................    1545-0092
301.6685-1.................................................    1545-0092
301.6689-1T................................................    1545-1056
301.6707-1T................................................    1545-0865
                                                               1545-0881
301.6708-1T................................................    1545-0865
301.6712-1.................................................    1545-1126
301.6723-1A(d).............................................    1545-0909
301.6903-1.................................................    1545-0013
                                                               1545-1783
301.6905-1.................................................    1545-0074
301.7001-1.................................................    1545-0123
301.7101-1.................................................    1545-1029
301.7207-1.................................................    1545-0092
301.7216-2.................................................    1545-0074
301.7216-2(o)..............................................    1545-1209
301.7425-3.................................................    1545-0854
301.7430-2(c)..............................................    1545-1356
301.7507-8.................................................    1545-0123
301.7507-9.................................................    1545-0123
301.7513-1.................................................    1545-0429
301.7517-1.................................................    1545-0015
301.7605-1.................................................    1545-0795
301.7623-1.................................................    1545-0409
                                                               1545-1534
301.7654-1.................................................    1545-0803
301.7701-3.................................................    1545-1486
301.7701-4.................................................    1545-1465
301.7701-7.................................................    1545-1600
301.7701-16................................................    1545-0795
301.7701(b)-1..............................................    1545-0089
301.7701(b)-2..............................................    1545-0089
301.7701(b)-3..............................................    1545-0089
301.7701(b)-4..............................................    1545-0089
301.7701(b)-5..............................................    1545-0089
301.7701(b)-6..............................................    1545-0089
301.7701(b)-7..............................................    1545-0089
                                                               1545-1126
301.7701(b)-9..............................................    1545-0089
301.7805-1.................................................    1545-0805
301.9001-1.................................................    1545-0220
301.9000-5.................................................    1545-1850
301.9100-2.................................................    1545-1488
301.9100-3.................................................    1545-1488
301.9100-4T................................................    1545-0016
                                                               1545-0042
                                                               1545-0074
                                                               1545-0129
                                                               1545-0172
                                                               1545-0619
301.9100-6T................................................    1545-0872
301.9100-7T................................................    1545-0982
301.9100-8.................................................    1545-1112
301.9100-11T...............................................    1545-0123
301.9100-12T...............................................    1545-0026
                                                               1545-0074
                                                               1545-0172
                                                               1545-1027
301.9100-14T...............................................    1545-0046
301.9100-15T...............................................    1545-0046
301.9100-16T...............................................    1545-0152
302.1-7....................................................    1545-0024
305.7701-1.................................................    1545-0823
305.7871-1.................................................    1545-0823
404.6048-1.................................................    1545-0160
420.0-1....................................................    1545-0710
Part 509...................................................    1545-0846
Part 513...................................................    1545-0834
Part 514...................................................    1545-0845
Part 521...................................................    1545-0848
601.104....................................................    1545-0233
601.105....................................................    1545-0091
601.201....................................................    1545-0019
                                                               1545-0819
601.204....................................................    1545-0152
601.401....................................................    1545-0257
601.504....................................................    1545-0150
601.601....................................................    1545-0800
601.602....................................................    1545-0295
                                                               1545-0387
                                                               1545-0957
601.702....................................................    1545-0429
------------------------------------------------------------------------


(26 U.S.C. 7805)

[T.D. 8011, 50 FR 10222, Mar. 14, 1985]

    Editorial Note: For Federal Register citations affecting Sec. 
602.101, see the List of CFR Sections Affected, which appears in the 
Findings Aids section of the printed volume and on GPO Access.

    Effective Date Note: By T.D. 9187, 70 FR 10327, Mar. 3, 2005, Sec. 
602.101(b) was amended by removing the entry for Sec. 1.337(d)-2T and 
adding entries ``Sec. Sec. 1.337(d)-2, 1.1502-20 and 1.1502-32'', 
effective Apr. 4, 2005.

[[Page 158]]



PART 701_PRESIDENTIAL ELECTION CAMPAIGN FUND--Table of Contents




    Authority: 26 U.S.C. 7805.



Sec. 701.9006-1  Presidential Election Campaign Fund.

    (a) Transfer of amounts to the Presidential Election Campaign Fund. 
The Secretary shall determine at least once a month the amount 
designated by individuals under section 6096 to the Presidential 
Election Campaign Fund (``Fund'') established under section 9006(a). The 
Secretary shall then promptly transfer from the general fund of the 
Treasury that amount to the Fund. Only amounts transferred to the Fund 
on or before September 30 following a presidential election shall be 
used to satisfy certifications relating to that presidential election.
    (b) Creation of separate accounts within the Presidential Election 
Campaign Fund. The Secretary shall establish, within the Presidential 
Election Campaign Fund, three separate accounts, designated as the 
Presidential Nominating Convention Account, the Presidential and Vice 
Presidential Nominee Account, and the Presidential Primary Matching 
Payment Account.
    (c) Transfer of amounts to the Presidential Nominating Convention 
Account. The Secretary shall deposit in the Presidential Nominating 
Convention Account such amounts as the Secretary determines, in 
consultation with the Federal Election Commission (the ``Commission''), 
are required to make the payments prescribed by section 9008(b)(3). The 
Secretary shall make this deposit only from amounts that have actually 
been transferred to the Presidential Election Campaign Fund under Sec. 
701.9006-1(a).
    (d) Transfer of amounts to the Presidential and Vice Presidential 
Nominee Account. After making the transfers prescribed by Sec. 
701.9006-1(c), the Secretary shall deposit in the Presidential and Vice 
Presidential Nominee Account such amounts as the Secretary determines, 
in consultation with the Commission, are required to make the payments 
prescribed by section 9006(b). The Secretary shall make this deposit 
only from amounts that have actually been transferred to the 
Presidential Election Campaign Fund under Sec. 701.9006-1(a).
    (e) Limit on additional deposits. After making the transfers 
prescribed by Sec. Sec. 701.9006-1(c) and 701.9006-1(d) for a 
presidential election, including any transfers on account of adjustments 
under section 9008(b)(5) and post-election entitlements under section 
9004(a)(3), the Secretary shall not make any additional deposits to 
those accounts until October 1 of the year following that presidential 
election.
    (f) Transfer of amounts to the Presidential Primary Matching Payment 
Account. See Sec. 702.9037-1 for rules relating to transfers of amounts 
to the Presidential Primary Matching Payment Account.

[56 FR 21599, May 10, 1991; 56 FR 27999, June 18, 1991]



PART 702_PRESIDENTIAL PRIMARY MATCHING PAYMENT ACCOUNT--Table of Contents




Sec.
702.9037-1 Transfer of amounts to the Presidential Primary Matching 
          Payment Account.
702.9037-2 Payments from the Presidential Primary Matching Payment 
          Account.

    Authority: 26 U.S.C. 7805.

    Source: 56 FR 21599, May 10, 1991, unless otherwise noted.



Sec. 702.9037-1  Transfer of amounts to the Presidential Primary 
Matching Payment Account.

    The Secretary shall deposit amounts into the Presidential Primary 
Matching Payment Account only to the extent that there are amounts in 
the Presidential Election Campaign Fund after the transfers prescribed 
by Sec. Sec. 701.9006-1(c) and 701.9006-1(d). The Secretary shall make 
this deposit only from amounts that have actually been transferred to 
the Presidential Election Campaign Fund under Sec. 701.9006-1(a). 
Promptly after the end of each month the Secretary shall notify the 
Federal Election Commission of the total deposits made to the account in 
the month and the balance in the account at the end of the month. Any 
amounts in the account after October 31 following a presidential 
election shall be returned to the Presidential

[[Page 159]]

Election Campaign Fund for the purpose of making the transfers 
prescribed by Sec. Sec. 701.9006-1 (c), (d), and (f) for the next 
presidential election.



Sec. 702.9037-2  Payments from the Presidential Primary Matching 
Payment Account.

    (a) In general. The Federal Election Commission (the ``Commission'') 
shall certify to the Secretary the full amount of payment to which a 
candidate is entitled under section 9036. Except as provided in 
paragraph (c) of this section, promptly after the end of each calendar 
month, but not before the beginning of the matching payment period under 
section 9032(6), the Secretary shall pay the amounts certified by the 
Commission in the preceding calendar month from the Presidential Primary 
Matching Payment Account to the candidate.
    (b) Notification to the Federal Election Commission. Promptly, after 
all the payments under paragraph (a) of this section have been made for 
a calendar month, the Secretary shall notify the Commission of the 
amount paid to each candidate for the calendar month and the balance 
remaining in the Presidential Primary Matching Payment Account.
    (c) Payments to candidates in the case of shortfall. If the amount 
certified by the Commission in a calendar month exceeds the balance in 
the Presidential Primary Matching Payment Account on the last day of the 
calendar month, the amount paid to a candidate for that month under 
paragraph (a) of this section is the amount determined by multiplying 
the amount certified by the Commission for the candidate during the 
calendar month by the ratio of the balance in the account on the last 
day of the calendar month over the total amount certified by the 
Commission for all the candidates during the calendar month. Any amount 
certified by the Commission, but not paid to a candidate because of this 
paragraph (c), is treated as an amount certified by the Commission for 
that candidate during the succeeding calendar month.
    (d) Example. The provisions of paragraph (c) of this section may be 
illustrated by the following example.

    Example. X, Y, and Z are eligible candidates. On February 11, 1992, 
the Secretary receives certifications by the Commission for X in the 
amount of $2000x and Y in the amount of $500x. There is no certification 
for Z. The Secretary does not receive any other certifications during 
February 1992. On February 29, 1992, the balance in the Presidential 
Primary Matching Payment Account is $1500x. Under paragraph (c) of this 
section, X's payment for February 1992 is $1200x ($2000x (the amount 
certified by the Commission for X during February 1992) multiplied by 
$1500x (the balance in the account on the last day of February 1992) 
over $2500x (the total amount certified by the Commission for all 
candidates during February 1992)). The amount not paid to X, $800x 
($2000x minus $1200x), is treated as certified by the Commission for X 
during March 1992, the succeeding calendar month. Under paragraph (c) of 
this section, Y's payment for February 1992 is $300x ($500x multiplied 
by $1500x over $2500x). The amount not paid to Y, $200x ($500x minus 
$300x), is treated as certified by the Commission for Y during March 
1992. On March 10, 1992, no certifications are received for X and Y, but 
the Secretary receives a certification by the Commission for Z in the 
amount of $2600x. The Secretary does not receive any other 
certifications during March 1992. On March 31, 1992, the balance in the 
account is $900x. Under paragraph (c) of this section, X's payment for 
March 1992 is $200x ($800x (the amount treated as certified by the 
Commission for X during March 1992) multiplied by $900x (the balance in 
the account on the last day of March 1992) over $3600x (the total amount 
treated as certified or actually certified by the Commission for all 
candidates during March 1992)). Under paragraph (c) of this section, Y's 
payment for March 1992 is $50x ($200x multiplied by $900x over $3600x). 
Under paragraph (c) of this section, Z's payment for March 1992 is $650x 
($2600x multiplied by $900x over $3600x). The amounts not paid to X, Y, 
and Z for March 1992 are treated as certified by the Commission during 
April 1992.

                        PARTS 703-800 [RESERVED]



PART 801_BALANCED SYSTEM FOR MEASURING ORGANIZATIONAL AND EMPLOYEE 
PERFORMANCE WITHIN THE INTERNAL REVENUE SERVICE--Table of Contents




Sec.
801.1 Balanced performance measurement system; in general.
801.2 Measuring organizational performance.
801.3 Measuring employee performance.

[[Page 160]]

801.4 Customer satisfaction measures.
801.5 Employee satisfaction measures.
801.6 Business results measures.

    Authority: 5 U.S.C 9501 et seq.; secs. 1201, 1204, Pub. L. 105-206, 
112 Stat. 685, 715-716, 722 (26 U.S.C. 7804 note).

    Source: T.D. 8830, 64 FR 42835, Aug. 6, 1999 unless otherwise noted.



Sec. 801.1  Balanced performance measurement system; in general.

    (a) In general--(1) The regulations in this part 801 implement the 
provisions of sections 1201 and 1204 of the Internal Revenue Service 
Restructuring and Reform Act of 1998 (Public Law 105-106, 112 Stat. 685, 
715-716, 722) and provide rules relating to the establishment by the 
Internal Revenue Service of a balanced performance measurement system.
    (2) Modern management practice and various statutory and regulatory 
provisions require the IRS to set performance goals for organizational 
units and to measure the results achieved by those organizations with 
respect to those goals. To fulfill these requirements, the IRS has 
established a balanced performance measurement system, composed of three 
elements: Customer Satisfaction Measures; Employee Satisfaction 
Measures; and Business Results Measures. The IRS is likewise required to 
establish a performance evaluation system for individual employees.
    (b) Effective date. This part 801 is effective September 7, 1999.



Sec. 801.2  Measuring organizational performance.

    (a) In general. The performance measures that comprise the balanced 
measurement system will, to the maximum extent possible, be stated in 
objective, quantifiable and measurable terms and, subject to the 
limitation set forth in paragraph (b) of this section, will be used to 
measure the overall performance of various operational units within the 
IRS. In addition to implementing the requirements of the Internal 
Revenue Service Restructuring and Reform Act of 1998 (Public Law 105-
206, 112 Stat. 685), the measures described here will, where 
appropriate, be used in performance goals and performance evaluations 
established, inter alia, under Division E, National Defense 
Authorization Act for Fiscal Year 1996 (the Clinger-Cohen Act of 1996) 
(Public Law 104-106, 110 Stat. 186, 679); the Government Performance and 
Results Act of 1993 (Public Law 103-62, 107 Stat. 285); and the Chief 
Financial Officers Act of 1990 (Public Law 101-576, 108 Stat. 2838).
    (b) Limitation. Quantity measures (as described in Sec. 801.6) will 
not be used to evaluate the performance of or to impose or suggest 
production goals for any organizational unit with employees who are 
responsible for exercising judgment with respect to tax enforcement 
results (as defined in Sec. 801.6) except in conjunction with an 
evaluation or goals based also upon Customer Satisfaction Measures, 
Employee Satisfaction Measures, and Quality Measures.



Sec. 801.3  Measuring employee performance.

    (a) In general. All employees of the IRS will be evaluated according 
to the critical elements and standards or such other performance 
criteria as may be established for their positions. In accordance with 
the requirements of 5 U.S.C. 4312, 4313 and 9508 and section 1201 of the 
Internal Revenue Service Restructuring and Reform Act of 1998 (Public 
Law 105-206, 112 Stat. 685 ) (as is appropriate to the employee's 
position), the performance criteria for each position will be composed 
of elements that support the organizational measures of Customer 
Satisfaction, Employee Satisfaction and Business Results; however, such 
organizational measures will not directly determine the evaluation of 
individual employees.
    (b) Fair and equitable treatment of taxpayers. In addition to all 
other criteria required to be used in the evaluation of employee 
performance, all employees of the IRS will be evaluated on whether they 
provided fair and equitable treatment to taxpayers.
    (c) Senior Executive Service and special positions. Employees in the 
Senior Executive Service will be rated in accordance with the 
requirements of 5 U.S.C. 4312 and 4313 and employees selected to fill 
positions under 5 U.S.C. 9503 will be evaluated pursuant to workplans, 
employment agreements, performance

[[Page 161]]

agreements or similar documents entered into between the Internal 
Revenue Service and the employee.
    (d) General workforce. The performance evaluation system for all 
other employees will:
    (1) Establish one or more retention standards for each employee 
related to the work of the employee and expressed in terms of individual 
performance--
    (i) Require periodic determinations of whether each employee meets 
or does not meet the employee's established retention standards; and
    (ii) Require that action be taken, in accordance with applicable 
laws and regulations, with respect to employees whose performance does 
not meet the established retention standards.
    (2) Establish goals or objectives for individual performance 
consistent with the IRS's performance planning procedures--
    (i) Use such goals and objectives to make performance distinctions 
among employees or groups of employees; and
    (ii) Use performance assessments as a basis for granting employee 
awards, adjusting an employee's rate of basic pay, and other appropriate 
personnel actions, in accordance with applicable laws and regulations.
    (e) Limitations. (1) No employee of the Internal Revenue Service may 
use records of tax enforcement results (as defined in Sec. 801.6) to 
evaluate any other employee or to impose or suggest production quotas or 
goals for any employee.
    (i) For purposes of the limitation contained in this paragraph (e), 
employee has the meaning as defined in 5 U.S.C. 2105(a).
    (ii) For purposes of the limitation contained in this paragraph (e), 
evaluate includes any process used to appraise or measure an employee's 
performance for purposes of providing the following:
    (A) Any required or requested performance rating.
    (B) A recommendation for an award covered by Chapter 45 of Title 5; 
5 U.S.C. 5384; or section 1201(a) of the Internal Revenue Service 
Restructuring and Reform Act of 1998, (Public Law 105-206, 112 Stat. 
685, 713-716 ).
    (C) An assessment of an employee's qualifications for promotion, 
reassignment or other change in duties.
    (D) An assessment of an employee's eligibility for incentives, 
allowances or bonuses.
    (E) Ranking of employees for release/recall and reductions in force.
    (2) Employees who are responsible for exercising judgment with 
respect to tax enforcement results (as defined in Sec. 801.6) in cases 
concerning one or more taxpayers may be evaluated with respect to work 
done on such cases only on the basis of information derived from a 
review of the work done on the taxpayer cases handled by such employee.
    (3) Performance measures based in whole or in part on Quantity 
Measures (as described in Sec. 801.6) will not be used to evaluate the 
performance of or to impose or suggest goals for any non-supervisory 
employee who is responsible for exercising judgment with respect to tax 
enforcement results (as defined in Sec. 801.6).



Sec. 801.4  Customer satisfaction measures.

    The customer satisfaction goals and accomplishments of operating 
units within the Internal Revenue Service will be determined on the 
basis of information gathered via various methods. For example, 
questionnaires, surveys and other types of information gathering 
mechanisms may be employed to gather data regarding customer 
satisfaction. Information to measure customer satisfaction for a 
particular work unit will be gathered from a statistically valid sample 
of the customers served by that operating unit and will be used to 
measure, among other things, whether those customers believe that they 
received courteous, timely and professional treatment by the Internal 
Revenue Service personnel with whom they dealt. Customers will be 
permitted to provide information requested for these purposes under 
conditions that guarantee them anonymity. For purposes of this section, 
customers may include individual taxpayers, organizational units or 
employees within Internal Revenue Service and external groups affected 
by the

[[Page 162]]

services performed by the Internal Revenue Service operating unit.



Sec. 801.5  Employee satisfaction measures.

    The employee satisfaction numerical ratings to be given operating 
units within the Internal Revenue Service will be determined on the 
basis of information gathered via various methods. For example, 
questionnaires, surveys and other information gathering mechanisms may 
be employed to gather data regarding employee satisfaction. The 
information gathered will be used to measure, among other factors 
bearing upon employee satisfaction, the quality of supervision and the 
adequacy of training and support services. All employees of an operating 
unit will have an opportunity to provide information regarding employee 
satisfaction within the operating unit under conditions that guarantee 
them anonymity.



Sec. 801.6  Business results measures.

    (a) In general. The business results measures will consist of 
numerical scores determined under the Quality Measures and the Quantity 
Measures described elsewhere in this section.
    (b) Quality measures. The quality measure will be determined on the 
basis of a review by a specially dedicated staff within the Internal 
Revenue Service of a statistically valid sample of work items handled by 
certain functions or organizational units determined by the Commissioner 
or his delegate such as the following:
    (1) Examination and Collection units and Automated Collection System 
units (ACS). The quality review of the handling of cases involving 
particular taxpayers will focus on such factors as whether Internal 
Revenue Service personnel devoted an appropriate amount of time to a 
matter, properly analyzed the issues presented, developed the facts 
regarding those issues, correctly applied the law to the facts, and 
complied with statutory, regulatory and Internal Revenue Service 
procedures, including timeliness, adequacy of notifications and required 
contacts with taxpayers.
    (2) Toll-free telephone sites. The quality review of telephone 
services will focus on such factors as whether Internal Revenue Service 
personnel provided accurate tax law and account information.
    (3) Other workunits. The quality review of other workunits will be 
determined according to criteria prescribed by the Commissioner or his 
delegate.
    (c) Quantity measures. The quantity measures will consist of 
outcome-neutral production and resource data, such as the number of 
cases closed, work items completed, customer education, assistance and 
outreach efforts undertaken, hours expended and similar inventory, 
workload and staffing information, that does not contain information 
regarding the tax enforcement result reached in any case involving 
particular taxpayers.
    (d) Definitions--(1) Tax enforcement result. A tax enforcement 
result is the outcome produced by an Internal Revenue Service employee's 
exercise of judgment recommending or determining whether or how the 
Internal Revenue Service should pursue enforcement of the tax laws.
    (i) Examples of tax enforcement results. The following are examples 
of a tax enforcement result: a lien filed; a levy served; a seizure 
executed; the amount assessed; the amount collected; and a fraud 
referral.
    (ii) Examples of data that are not tax enforcement results. The 
following are examples of data that are not tax enforcement results: 
case closures; time per case; direct examination time/out of office 
time; cycle time; number or percentage of overage cases; inventory 
information; toll-free level of access; talk time; number and type of 
customer education, assistance and outreach efforts completed; and data 
derived from a quality review or from a review of an employee's or a 
work unit's work on a case, such as the number or percentage of cases in 
which correct examination adjustments were proposed or appropriate lien 
determinations were made.
    (2) Records of tax enforcement results. Records of tax enforcement 
results are data, statistics, compilations of information or other 
numerical or quantitative recordations of the tax enforcement results 
reached in one or

[[Page 163]]

more cases, but do not include tax enforcement results of individual 
cases when used to determine whether an employee exercised appropriate 
judgment in pursuing enforcement of the tax laws based upon a review of 
the employee's work on that individual case.
    (e) Permitted uses of records of tax enforcement results. Records of 
tax enforcement results may be used for purposes such as forecasting, 
financial planning, resource management, and the formulation of case 
selection criteria.
    (f) Examples. The following examples illustrate the rules of this 
section:

    Example 1. In conducting a performance evaluation, a supervisor may 
take into consideration information showing that the employee had failed 
to propose an appropriate adjustment to tax liability in one of the 
cases the employee examined, provided that information is derived from a 
review of the work done on the case. All information derived from such a 
review of individual cases handled by an employee, including time 
expended, issues raised, and enforcement outcomes reached may be 
considered in evaluating the employee.
    Example 2. When assigning a case, a supervisor may discuss with the 
employee the merits, issues and development of techniques of the case 
based upon a review of the case file.
    Example 3. A supervisor may not establish a goal for proposed 
adjustments in a future examination, based upon the tax enforcement 
results achieved in other cases.
    Example 4. A headquarters unit may use records of tax enforcement 
results to develop methodologies and algorithms for use in selecting tax 
returns to audit.

                         PART 802-END [RESERVED]


[[Page 165]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapter, subchapters and parts and an 
alphabetical list of agencies publishing in the CFR are included in the 
CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.


  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 167]]



                    Table of CFR Titles and Chapters




                      (Revised as of April 1, 2005)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  [Reserved]
        II  Office of Management and Budget Circulars and Guidance
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements [Reserved]


                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)

[[Page 168]]

        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)
      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
        LV  National Endowment for the Arts (Part 6501)
       LVI  National Endowment for the Humanities (Part 6601)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
     LXVII  Institute of Museum and Library Services (Part 7701)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
    LXXIII  Department of Agriculture (Part 8301)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)

[[Page 169]]

    LXXVII  Office of Management and Budget (Part 8701)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Part 
                9701)

                      Title 6--Homeland Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 0--99)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)

[[Page 170]]

        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

[[Page 171]]

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Part 1800)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board, Department of 
                Commerce (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board, 
                Department of Commerce (Parts 500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)

[[Page 172]]

        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)

[[Page 173]]

        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  Bureau of Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Bureau of Immigration and Customs Enforcement, 
                Department of Homeland Security (Parts 400--599)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

[[Page 174]]

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)

[[Page 175]]

        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)

[[Page 176]]

        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

[[Page 177]]

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)

[[Page 178]]

    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
        XI  National Institute for Literacy (Parts 1100--1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                         Title 35--[Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Part 1501)

[[Page 179]]

       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
       105  General Services Administration (Parts 105-1--105-999)

[[Page 180]]

       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10010)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

[[Page 181]]

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)

[[Page 182]]

        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  United States Agency for International Development 
                (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  [Reserved]
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)

[[Page 183]]

        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499)
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)

[[Page 184]]

        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR

[[Page 185]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of April 1, 2005)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            5, LXXIII
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX

[[Page 186]]

Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV, VI
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Corporation for National and Community Service    45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    28, VIII
     for the District of Columbia
Customs and Border Protection Bureau              19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII

[[Page 187]]

  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   5, LIV; 40, I, IV, VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                5, III, LXXVII; 14, VI; 
                                                  48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II

[[Page 188]]

  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5

[[Page 189]]

  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V; 42, I
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  6, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection Bureau            19, I
  Federal Emergency Management Agency             44, I
  Immigration and Customs Enforcement Bureau      19, IV
  Immigration and Naturalization                  8, I
  Transportation Security Administration          49, XII
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration and Naturalization                    8, I
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V; 42, I
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General

[[Page 190]]

  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I, XI; 40, 
                                                  IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A

[[Page 191]]

  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   45, XII, XXV
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV, VI
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
   Commission
[[Page 192]]

Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII

[[Page 193]]

Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection Bureau            19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 195]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations that were 
made by documents published in the Federal Register since January 1, 
2001, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 2001, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, 1973-1985, and 1986-2000'' published in 
11 separate volumes.

                                  2001

26 CFR
                                                                   66 FR
                                                                    Page
Chapter I
601.401 (a)(5) heading, (iii) and (iv) amended.....................33832
602.101 (b) table amended (OMB numbers).....295, 2172, 2240, 2251, 2256, 
             4671, 9957, 10196, 32542, 33637, 38546, 50563, 64352, 66314
    (b) table corrected............................................64076
    Corrected; CFR correction......................................43478

                                  2002

26 CFR
                                                                   67 FR
                                                                    Page
Chapter I
601.201 (o)(3)(xv) and (xxi) amended; (o)(3)(xvi) introductory 
        text and (xvii) revised....................................47457
601.701 Removed....................................................69675
601.702 Revised....................................................69675
602 Technical correction..........4177, 5062, 12471, 35732, 37671, 45311
602.101 (b) table amended (OMB numbers)......17, 822, 1095, 3099, 11040, 
         12871, 19028, 20032, 20907, 34401, 34610, 35025, 38003, 43545, 
           47296, 47454, 48760, 54093, 69473, 77687, 78176, 78383, 78698
    (b) table corrected (OMB numbers)..............................77678

                                  2003

26 CFR
                                                                   68 FR
                                                                    Page
Chapter I
602 Technical correction....................................24644, 63986
602.101 (b) table amended; (OMB numbers).........1537, 2696, 4922, 7926, 
         10178, 11741, 12300, 12825, 17291, 22600, 34299, 34799, 39013, 
          41073, 41250, 41911,42267, 44618, 45772, 46087, 51179, 51417, 
                                       52508, 54361, 67595, 70149, 70709
602 Technical correction....................................24644, 63986
602.101 (b) table corrected; (OMB numbers)...........15943, 52463, 54660

                                  2004

26 CFR
                                                                   69 FR
                                                                    Page
Chapter I
602 Technical correction............................................5017
602.101 (b) table amended (OMB numbers).....29, 465, 7574, 41195, 41943, 
         43741, 45589, 46985, 52829, 61311, 62187, 70550, 70551, 76617, 
                                                     77636, 78201, 78763
    (b) table corrected (OMB numbers)...............................7351

[[Page 196]]

                                  2005

   (Regulations published from January 1, 2005, through April 1, 2005)

26 CFR
                                                                   70 FR
                                                                    Page
602.101 (b) table amended (OMB numbers)........................704, 7400
    (b) table amended (OMB numbers); eff. 4-4-05...................10327


                                  [all]