Rev. Proc. 80-24

Section 1. Purpose

The purpose of this revenue procedure is to update and restate the general procedures of the Internal Revenue Service in issuing rulings, determination, opinion, notification, and information letters to taxpayers and in entering into closing agreements on specific issues as to the interpretation or application of the federal tax laws in the employee plan and exempt organization areas. This revenue procedure also informs taxpayers and their representatives where they may direct requests for rulings, determination, notification, and opinion letters, and closing agreements; and outlines procedures to be followed in order to promote efficient handling of their inquiries.

Sec. 2. General Practice and Definitions

.01 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 as to the tax effects of their acts or transactions, or in the interest of proper design and administration of employee benefit plans. One of the functions of the National Office of the Service is to issue rulings in such matters. Key District Directors of Internal Revenue 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 a list of key District Directors, see Rev. Proc. 80-25, page 667, this Bulletin, or Rev. Proc. 80-30, page 685, this Bulletin.

.02 For purposes of this revenue procedure, the term "taxpayer" includes all persons subject to any provision of the Internal Revenue Code and, whenever appropriate, their authorized representative(s).

.03 A "ruling" is a written statement issued to a taxpayer by the National Office that interprets and applies the tax laws, or any non-tax laws applicable to employee benefit plans for which the Service has jurisdiction, to a specific set of facts. Rulings are issued only by the National Office. The issuance of rulings in employee plan and exempt organization matters is under the general supervision of the Assistant Commissioner (Employee Plans and Exempt Organizations) and has been largely redelegated to the directors of the Actuarial, Employee Plans, and Exempt Organizations Divisions.

.04 A "determination letter" is a written statement issued by a key District Director in response to a written inquiry by an individual or an organization that applies to the particular facts involved, and to the principles and precedents previously announced by the National Office. A determination letter is issued only where a determination can be made on the basis of clearly established rules as set forth in the statute or regulations, or in 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 key District Director by the provisions of section 4 of this revenue procedure, a determination letter will not be issued.

.05 A "notification letter" is a written statement furnished by a key district office, upon request, as to the acceptability (for purposes of sections 401 and 501(a) of the Internal Revenue Code) of the form of a pattern plan or a field prototype plan and any related trust or custodial account.

.06 An "opinion letter" is a written statement furnished by the National Office, upon request, as to the acceptability (for purposes of sections 401 and 501(a) of the Code) of the form of any master or prototype plan and any related trust or custodial account, or as to the conformance of a prototype trust, custodial account, individual annuity, or endowment contract with the requirements of section 408(a), (b), or (k), as applicable. See Rev. Proc. 75-6, 1975-1 C.B. 646, and Rev. Proc. 80-29, page 681, this Bulletin.

.07 An "information letter" is a statement issued either by the National Office or by a key District Director that 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 section 6 of this revenue procedure, and it is believed that such general information will assist the individual or organization.

.08 A "revenue ruling" is an official interpretation of the Internal Revenue laws, related statutes, tax treaties, and regulations, by the Internal Revenue 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, Service officials, and others concerned.

.09 A "closing agreement," as the term is used herein, is an agreement between the Commissioner of Internal Revenue or the Commissioner's delegate and a taxpayer with respect to a specific issue or issues entered into pursuant to the authority contained in section 7121 of the Code. Such a closing agreement is based on a ruling that has been signed by the Commissioner or the Commissioner's 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 requested 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 exceeds twenty-five. 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 twenty-five, a "mass closing agreement" will be entered into with the taxpayer who is authorized by the others to represent the entire group.

Sec. 3. Rulings and Opinion Letters Issued by the National Office

.01 In employee plan and exempt organization matters, the National Office issues rulings on prospective transactions and on completed transactions before the appropriate 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 key district office, is being considered on appeal within the Service, or is pending in litigation. If a return involving an issue for a particular year is filed while a request for a ruling on that issue is pending, the National Office will issue the ruling unless the taxpayer notifies the National Office as discussed in section 6.06 that an examination of the issue for which a ruling is requested or an examination of the identical issue on a prior year's return has been initiated by a key District Director. However, even in the event that an examination is initiated, the National Office ordinarily will issue the ruling if the key District Director agrees, by memorandum, to permit the issuance of the ruling. 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 Rev. Proc. 72-5, 1972-1 C.B. 709, Rev. Proc. 80-25, and Rev. Proc. 80-27, page 677, this Bulletin. The National Office issues rulings involving employee plans matters under sections 401 through 415, except as provided in section 3 of Rev. Proc. 80-30. The National Office issues rulings involving waiver of the minimum funding standard, changes in the funding method, and changes in the plan year under section 412. The National Office issues rulings involving section 219 except for issues relating to the deductibility of contributions that depend on whether a particular program meets the requirements of section 408. The National Office also issues rulings involving prohibited transactions under sections 503 and 4975. 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 involving sections 401, 403(a), and 501(a), and of prototype trusts, custodial accounts, annuities, or endowment contracts under section 408(a), (b), or (k), only to the extent provided in Rev. Procs. 75-6 and 80-29. The National Office issues rulings as to whether individual retirement accounts established by employers or associations of employees meet the requirements of section 408(c). See Rev. Proc. 76-32, 1976-2 C.B. 654.

.02 With regard to applications for extension of the time for making an election or application for relief pursuant to section 1.9100 of the Income Tax Regulations, see Rev. Proc. 79-63, 1979-2 C.B. 578. If a request for an extension of time under section 1.9100-1 is submitted before or after the return is filed but before the return is examined, the procedures of this revenue procedure are applicable. If an examination of the return has begun, or is being considered by an Appeals office, the procedures of Rev. Proc. 80-26, page 671, this Bulletin, are applicable.

.03 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 individual taxpayers within the group. However, rulings may be issued to such groups or associations relating to their own tax status or liability or that of member organizations included under a group exemption letter, provided such tax status or liability is not an issue before any key district office, or on appeal within the Service, in connection with an examination or audit of the liability of the same taxpayer for the same or a prior period.

.04 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.

1 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.

2 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.

3 If an inquiry presents an issue that cannot be reasonably resolved prior to the issuance of regulations, a ruling will not be issued.

4 If 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, the taxpayer 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.

Sec. 4. Determination and Notification Letters Issued by Key District Directors

.01 In employee plan and exempt organization matters, key District Directors issue determination letters in response to taxpayers' written requests submitted to their offices involving completed transactions affecting taxpayers that are under their audit jurisdiction, but only if the answers to the question presented is covered specifically by statute or regulations, or specifically by a ruling, opinion, or court decision published in the Internal Revenue Bulletin. A determination letter usually will not be issued with respect to a question that 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. Key District Directors will not issue determination letters as to the tax consequences of prospective or proposed transactions, except as provided in sections 4.03, 4.04, and 4.05.

.02 Notwithstanding the provisions of section 4.01, a key District Director generally will not issue a determination letter in response to an inquiry, although presenting a question specifically covered by statute, regulations, or rulings, etc., published in the Internal Revenue Bulletin, where (1) it appears that the taxpayer has directed the same inquiry to the National Office, (2) the identical issue involving the same taxpayer is pending in litigation or on appeal within the Service, or (3) the determination letter is requested by an industry, trade association, or similar group on behalf of individual taxpayers within the group (other than subordinate organizations covered by a group exemption letter). Under no circumstances will a key District Director issue a determination letter unless the inquiry is made by a taxpayer or taxpayers that are or will be under the Director's audit jurisdiction.

.03 Key District Directors issue determination letters as to the qualification of plans involving sections 401, 403(a), and 405(a) of the Code, the exempt status of related trusts, if any, under section 501, and as to whether an individually designed defined contribution plan constitutes an employee stock ownership plan under section 301(d) and (e) of the Tax Reduction Act of 1975, Pub. L. 94-12, 1975-1 C.B. 545 (see Rev. Proc. 75-48, 1975-2 C.B. 581 and 80-30) or, for taxable years beginning after December 31, 1978, under sections 409A or 4975(e)(7) of the Code, as added or amended respectively, by the Revenue Act of 1978, Pub. L. 95-600, 1978-3 C.B. (Vol. 1) 1. Key District Directors also issue determination letters as to the qualification of certain organizations for exemption from federal income tax under sections 501 and 521 to the extent provided in Rev. Proc. 80-25, and as to private foundation status under Rev. Proc. 76-34, 1976-2 C.B. 656.

.04 Key district offices issue notification letters as to the acceptability of the form of pattern plans and any related trusts or custodial accounts involving sections 401 and 501(a) of the Code only to the extent provided in Rev. Proc. 76-15, 1976-1 C.B. 553. Key district offices also issue notification letters as to the acceptability of the form of field prototype plans and any related trusts or custodial accounts involving sections 401 and 501(a) only to the extent provided in Rev. Proc. 77-23, 1977-2 C.B. 530.

.05 A request received by a key District Director with respect to a question involved in a return already filed will, in general, be considered in connection with the examination or audit of the return. If response is made to such inquiry prior to an examination or audit, it will be considered a tentative finding subject to the conclusions of any subsequent examination or audit of the return.

Sec. 5. Discretionary Authority to Issue Rulings and Determination Letters

.01 There are certain areas where, because of the inherently factual nature of the problem involved, or for other reasons, the Service will not issue, or ordinarily will not issue, rulings or determination letters. A ruling or a determination letter is not issued, for example, on alternative plans of proposed transactions or on hypothetical situations. A list of these areas for employee plans is set forth in Rev. Proc. 80-30. This 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 key 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 or to the proper interpretation of the laws pertaining to employee benefit plans.

.02 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.

.03 In the case of employee plans, a ruling or determination letter relating to an issue that is being considered by the Pension Benefit Guaranty Corporation or the Department of Labor, and involves the same taxpayer, shall be issued at the discretion of the Service.

Sec. 6. Instructions to Taxpayer

.01 A request for a ruling or a determination letter is to be submitted in duplicate if (1) more than one issue is presented in the request or (2) a closing agreement is requested with respect to the issue presented. It is not necessary to present requests in duplicate under other circumstances.

.02 In cases in which more than one issue is presented in a request for a ruling, the Service generally will issue a single ruling letter. However, the taxpayer may request a separate ruling letter on any of the issues. Unless the Service determines that it is not feasible or not in the best interest of the Service to comply with the taxpayer's request, separate ruling letters will be issued.

.03 When multiple issues are involved in a single factual situation and separate letters requesting rulings are submitted, a statement to this effect must be included in each ruling letter request. The Service, in issuing each ruling, shall state that separate rulings have been issued or requests for rulings are pending.

.04 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 key district office that has or will have audit jurisdiction over each party; a full and precise statement of the reasons for the transaction; and a carefully detailed description of the transaction. In addition, true copies of all contracts, wills, deeds, agreements, instruments, plan documents, trust agreements, 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 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, the identical issue is in a return of the taxpayer (or of a related taxpayer within the meaning of section 267 of the Code or a member of an affiliated group of which the taxpayer is also a member within the meaning of section 1504) and, if so, whether it is being considered by any key district office in connection with an active examination or audit, is being considered on appeal within the Service, or is pending in litigation, or, in the case of employee plans, is being considered by the Pension Benefit Guaranty Corporation or the Department of Labor. Where 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. Original documents should not be submitted because documents and exhibits become a part of the Internal Revenue Service file which cannot be returned. If a return is filed prior to the receipt of a ruling from the National Office concerning the return, a copy of the request must be attached to such return.

.05 As an alternative procedure for the issuance of rulings on prospective transactions, the taxpayer may submit a summary statement of the facts the taxpayer considers controlling the issue, in addition to the complete statement required for ruling requests by section 6.04 above. 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:

1 A complete statement of facts relating to the transaction, together with related documents, as required by section 6.04 above; and

2 A summary statement of the facts which the taxpayer 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 these 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 procedures contained in this revenue procedure;

(b) Taxpayers' rights and responsibilities are the same under the "two part" ruling request procedure as those provided in this revenue procedure;

(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.

.06 If the taxpayer asserts a particular determination, an explanation of the grounds for the assertion must be furnished, together with a statement of relevant authorities in support of the taxpayer's views. Even though the taxpayer is urging no particular determination of a proposed or prospective transaction, the taxpayer's views on the tax results of the proposed action and a statement of relevant authorities to support those views must be furnished. In addition, the taxpayer is encouraged to inform the Service of, and discuss the implications of, any legislation, or tax treaties, court decisions, regulations, revenue rulings, or revenue procedures that the taxpayer determines to be contrary to the position advanced. If the taxpayer determines that there are no contrary authorities, a statement to this effect would be helpful in the ruling request. Identification and discussion of contrary authorities will generally enable Service personnel to arrive more quickly at a full understanding of the issue and the relevant authorities. There is a further advantage to the taxpayer. When Service personnel receive the request, they will have before them the taxpayer's thinking on the effect and applicability of contrary authorities. Such information should, therefore, make research easier and lead to earlier action by the Service. Conversely, failure to disclose and distinguish significant contrary authorities may result in requests for additional information, which will delay action on the ruling request.

.07 If the request is with respect to the qualification of a plan involving section 401, 403(a), 405(a), or 408 of the Code, or conformance of an employee stock ownership plan to sections 301(d) and (e) of the Tax Reduction Act of 1975 (for taxable years beginning before December 31, 1978) or to section 409A or 4975(e)(7) of the Code (for taxable years beginning after December 31, 1978), see Rev. Procs. 75-6, 75-48, 76-15, 76-32, 77-23, 80-29, and 80-30. If the request is with respect to the qualification of an organization for exemption from Federal income tax under section 501 or 521, see Rev. Procs. 72-5, 80-25, and 80-27.

.08 Before making the text of a ruling or determination letter open or available to public inspection pursuant to section 6110(a) of the Code, certain information identifying the taxpayer is deleted pursuant to section 6110(c). In order to assist the Internal Revenue Service in making the required deletions, the taxpayer requesting the ruling or determination letter must accompany the request with either a statement of deletions 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 the request for a ruling or determination letter and supporting documents, on which shall be indicated, by the use of brackets, the material that the taxpayer indicates should be deleted pursuant to section 6110(c). The statement of proposed deletions shall indicate the statutory basis, under section 6110(c), for each proposed deletion. The statement of proposed deletions shall not appear or be referred to anywhere in the request for a ruling or determination letter. If the taxpayer decides to request additional deletions pursuant to section 6110(c) prior to the time the ruling or determination letter is issued, additional statements may be submitted.

.09 A request for a ruling or determination letter to which section 6110 of the Code applies should contain a declaration in the following form: "Under the penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of the request are true, correct, and complete." This declaration must be signed by the taxpayer (i.e., an authorized corporate officer of a corporation, a trustee of a trust, or an individual taxpayer seeking a ruling on the taxpayer's own behalf). The signature of an individual with a power of attorney will not suffice for the declaration.

.10 A request by or for a taxpayer must be signed by the taxpayer or the taxpayer's 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 or she must be:

1 an attorney who is a member in good standing of the bar of the highest court of any state, possession, territory, Commonwealth, or the District of Columbia, and who files with the Service a written declaration that he or she is currently qualified as an attorney and he or she is authorized to represent the principal;

2 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 or she is currently qualified as a certified public accountant and he or she is authorized to represent the principal; or

3 a person, other than an attorney or certified public accountant, enrolled to practice before the Service, or an enrolled actuary (to the extent permitted), and who files with the Service a written declaration that he or she is currently enrolled (including in the declaration either his or her enrollment number or the expiration date of his or her enrollment card) and that he or she is authorized to represent the principal. (See Treasury Department Circular No. 230 (Revised 6-79) for the rules on who may practice before the Service.) The above requirements do not apply to an individual representing his or her full-time employer, or to a bona fide officer, administrator, trustee, etc., representing a corporation, trust, estate, association, or organized group. An unenrolled preparer of a return (other than an attorney or certified public accountant referred to in clauses 1 and 2 above) who is not a full-time employee or a bona fide officer, administrator, trustee, etc., may not represent a taxpayer with respect to a ruling or a determination letter. Any authorized representative, whether or not he or she is enrolled to practice, must also comply with the conference and practice requirements of the Statement of Procedural Rules (26 CFR 601). Forms 2848, Power of Attorney, and 2848-D, Authorization and Declaration, may be used with regard to rulings, determination letters, notification letters, and opinion letters requested under this revenue procedure and Rev. Procs. 72-5, 75-6, 75-48, 76-15, 76-32, 76-34, 77-23, 80-25, 80-27, 80-29, and 80-30.

.11 If a taxpayer has more than one representative, sending a copy of the ruling to any one representative shall be sufficient. Copies of rulings will be sent to not more than two representatives provided that they are located at different mailing addresses. If a taxpayer does not designate which representative is to receive a copy of the ruling, a copy of the ruling will be sent to the first representative named on the latest power of attorney. If the original of the ruling is to be sent to a representative, the power of attorney should contain a statement to that effect and designate the mailing address of such representative.

.12 A request for a ruling or opinion letter by the National Office should be addressed to the Assistant Commissioner (Employee Plans and Exempt Organizations), 1111 Constitution Avenue, N.W., Washington, D.C. 20224. A request for a determination or notification letter should be addressed to the key District Director, Internal Revenue Service, whose office has or will have audit jurisdiction over the organization. See also Rev. Procs. 72-5, 75-6, 75-48, 76-15, 76-32, 77-23, 80-25, 80-27, 80-29, and 80-30.

.13 A request for a notification letter by the key district office should be addressed in accordance with the procedures of Rev. Proc. 76-15 in the case of a pattern plan, and Rev. Proc. 77-23 in the case of a field prototype plan.

.14 Any request for a ruling or an opinion, notification, or determination letter that does not comply with all the provisions of this revenue procedure will be acknowledged, and the requirements that have not been met will be pointed out. When applicable, Employee Plans will return the request to the applicant. A request for a ruling or opinion letter addressed to the key District Director that does not comply with the provisions of this revenue procedure will be returned by the key District Director for completion prior to sending it to the National Office.

.15 A taxpayer who desires an oral discussion of the 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 the consideration when it will be most helpful.

.16 It is the practice of the Service to process requests for ruling, opinion, notification 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 cases. However, 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. 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, notification, 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 as though made by letter. Ruling, opinion, notification, and determination letters ordinarily will not be issued by telegram.

.17 The Director, Exempt Organizations Division, has primary responsibility for issuing rulings with respect to organizations exempt from income tax. The Director, Employee Plans Division, has primary responsibility for matters involving the qualification of pension, annuity, profit-sharing, stock bonus, and bond purchase plans; the tax treatment of employees and their beneficiaries and deduction for employer contributions under such plans; and the applicability of the prohibited transactions provisions of section 4975 of the Code. The Director, Actuarial Division, has primary responsibility for matters requiring actuarial determinations.

.18 A taxpayer desiring to obtain information as to the status of the taxpayer's case may do so by contacting the person indicated on the letter acknowledging receipt of the case.

.19 When a taxpayer receives a ruling or determination letter prior to the filing of a return with respect to any transaction that has been consummated and that is relevant to the return being filed, a copy of the ruling or determination letter should be attached to the return.

.20 If after receiving the notice pursant to section 6110(f)(1) of the Code of intention to disclose the ruling or determination letter (including a copy of the version proposed to be open to public inspection and notations of third party communications pursant to section 6110(d)), the taxpayer requesting the ruling or determination letter desires to protest the disclosure of certain information in the ruling or determination letter, the taxpayer must submit to the office indicated in the notice a written statement within 20 calendar days after the notice is mailed. The statement must identify those deletions not made by the Service that the taxpayer believes should have been made. The taxpayer must also submit a copy of the version of the ruling or determination letter proposed to be open to public inspection on which the taxpayer indicates, by the use of brackets, the deletions proposed by the taxpayer that have not been made by the Service. Generally, the Service will not consider the deletion of any material that the taxpayer did not propose be deleted prior to the issuance of the ruling or determination letter. The Service shall, within 20 days after receipt of the response by the taxpayer to the notice, mail to the taxpayer its final administrative conclusion regarding the deletions to be made.

.21 After receiving the notice pursant to section 6110(f)(1) of the Code of intention to disclose (but no later than 60 days after such notice is mailed), the taxpayer may submit a request for delay of public inspection pursant to either section 6110(g)(3) or sections 6110(g)(3) and (4). The request for delay shall be submitted to the office indicated in the notice and 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) must contain a statement from which the Commissioner may determine that good cause exists to warrant such delay.

Sec. 7. Conferences in the National Office

.01 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.

.02 A taxpayer is entitled, as a matter of right, to only one conference in the National Office unless one of the circumstances discussed in section 7.04 develops. This conference will usually be held at the branch level of the appropriate division in the office of the Assistant Commissioner (Employee Plans and Exempt Organizations) within 21 days of the date the taxpayer was notified that the National Office was ready to schedule a conference, and will usually be attended by a person who has authority to represent the branch chief. 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, 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.

.03 Since conference procedures are informal, no tape, stenographic, or other verbatim recording of a conference will be made.

.04 In the process of consideration in the National Office of a position proposed by a branch, it may appear that the final answer will involve a reversal of the branch proposal with a result that will be less favorable to the taxpayer. Or it may appear that an adverse position proposed by a branch will be sustained, but on a new or different issue or on substantially different grounds than those on which the branch decided the case. Under either of these circumstances, the taxpayer will be invited to another conference. The provisions of this revenue procedure limiting the number of conferences a taxpayer is entitled to 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.

.05 It is the responsibility of the taxpayer to add to the case file within 21 days after the date of the conference 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.

Sec. 8. Reference of Matters to the National Office

.01 Requests for determination letters, received by the key District Directors that, in accordance with the provisions of section 4 of this revenue procedure, may not be acted upon by a key district office, will be forwarded to the National Office for reply and the taxpayer advised accordingly. Key District Directors also refer to the National Office any request for a determination letter that in their judgment warrants the attention of the National Office. See also the provisions of Rev. Procs. 80-29 and 80-30 with respect to requests relating to qualification of a plan involving sections 401, 403(a), and 405(a) of the Code, and Rev. Procs. 72-5, 80-25, and 80-27 with respect to applications for recognition of exempt status under sections 501 and 521.

.02 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 key district office will advise the taxpayer that the Service will not issue a ruling or a determination letter on the issue. See section 5.01 of this revenue procedure.

Sec. 9. Reference of Matters to Key District Offices

Requests for rulings received by the National Office that, in accordance with the provisions of section 3 of this revenue procedure, may not be acted upon by the National Office will be forwarded for appropriate action to the key district office that has or will have audit jurisdiction. The taxpayer will be advised accordingly. If the request is with respect to an issue or an area of the type discussed in section 5.01, the taxpayer will be so advised and the request may be forwarded to the appropriate key district office for association with the related return or report of the taxpayer.

Sec. 10. Review of Determination Letters

.01 Determination letters issued with respect to the types of inquiries authorized by section 4.01 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, the taxpayer may ask the key District Director to reconsider the matter. The taxpayer may also ask the key District Director to request advice from the National Office. In such event the procedure in Rev. Proc. 80-26 will be followed.

.02 The procedures for review of determination letters relating to the qualification of employers' plans involving sections 401, 403(a), and 405(a) of the Code are provided in Rev. Proc. 80-30.

.03 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 Rev. Proc. 80-25.

Sec. 11. Withdrawal of Requests

The taxpayer'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 key District Director whose office has or will have audit jurisdiction of the taxpayer's return. The key District Director will consider the information submitted in any 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 will not be returned to the taxpayer.

Sec. 12. Oral Advice to Taxpayers

.01 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 prior to the receipt of a written request for a ruling, since oral opinions or advice are not binding on the Service. Persons who phone the National Office for oral advice are provided with the telephone number (toll-free if long distance) of the nearest office with Taxpayer Service personnel.

.02 A taxpayer may, of course, seek oral technical assistance from a key district office in the preparation of his or her return or report, pursuant to other established procedures. Such oral advice is advisory only and the Service is not bound to recognize it in any examination or audit.

.03 Taxpayer Service personnel will provide the answers to questions on procedural matters such as the application of the provisions of section 6 above, and questions relating to filing requirements, to obtaining plan determinations or recognition of exempt status. Taxpayer Service will also answer substantive questions on individual retirement savings arrangements, self-employed retirement plans, roll-overs, and the taxability of pension distributions.

Sec. 13. Effect of Rulings

.01 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 section 2.09 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 the Assistant Commissioner or Deputy Assistant Commissioner (Employee Plans and Exempt Organizations) 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 the Assistant Commissioner or Deputy Assistant Commissioner (Employee Plans and Exempt Organizations) generally will exercise this authority is set forth in this section.

.02 As part of the determination of a taxpayer's liability, it is the responsibility of the key 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 key 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 Rev. Proc. 80-26 will be followed. Otherwise, the ruling is to be applied by the key district office in its determination of the taxpayer's liability.

.03 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.

.04 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 (1) a notice to the taxpayer to whom the ruling originally was issued, (2) enactment of legislation or ratification of a tax treaty, (3) a decision of the United States Supreme Court, (4) issuance of temporary or final regulations, or (5) issuance of a revenue ruling, a revenue procedure, or other statement published in the Internal Revenue Bulletin.

.05 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 (1) there has been no misstatement or omission of material facts, (2) the facts subsequently developed are not materially different from the facts on which the ruling was based, (3) there has been no change in the applicable law, (4) the ruling was originally issued with respect to a prospective or proposed transaction, and (5) the taxpayer directly involved in the ruling acted in good faith in reliance upon the ruling and the retroactive revocation would be to the taxpayer's 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. However, the tax liability of members of an industry is not directly involved in a ruling issued to one of the members, and the holding in a revocation or modification of a 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.

.06 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 section 13.05 above 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 section 13.07.

.07 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 holding of the Service, the Assistant Commissioner (Employee Plans and Exempt Organizations) ordinarily will limit the retroactivity of the revocation or modification to a date not earlier than that on which the original ruling is modified or revoked. 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 section 13.01 of Rev. Proc. 80-25.)

.08 In the case of rulings involving completed transactions, other than those described in .07, above, taxpayers will not be afforded the protection against retroactive revocation provided in .05 above in the case of proposed transactions since they will not have entered into the transactions in reliance on the ruling.

Sec. 14. Effect of Determination Letters

.01 A determination letter issued by a key District Director in accordance with this revenue procedure will be given the same effect upon examination or audit as is described in section 13 except that reference to the National Office is not necessary where, upon examination or audit, it is the opinion of the key District Director that a conclusion contrary to that expressed in the determination letter is indicated. Except as provided in Delegation Order No. 96 (Rev. 4) with respect to certain employee plans determination letters, the key District Director may not limit the modification or revocation of a determination letter but must refer the matter to the National Office for exercise by the Commissioner or the Assistant Commissioner (Employee Plans and Exempt Organizations) of the authority to limit the modification or revocation.

.02 In this connection see also Rev. Procs. 80-25 and 80-30.

Sec. 15. Effect of Information Letters

An information letter issued by the National Office or by a key District Director is advisory only and the provisions of section 13 of this revenue procedure do not apply.

Sec. 16. Procedure for Requesting Application of Section 7805(b) in the Case of Rulings and Determination Letters

.01 Pursuant to section 7805(b) of the Code, it is within the discretion of the Commissioner or the Commissioner's delegate to prescribe the extent, if any, to which any ruling (including determination letters) will be applied without retroactive effect. A taxpayer to whom a ruling or determination letter has been issued may request that the Assistant Commissioner (Employee Plans and Exempt Organizations), the Commissioner's delegate, exercise the discretionary authority under section 7805(b) to limit the retroactive effect of any subsequent revocation or modification of the ruling or determination letter.

.02 In the case of a ruling seeking section 7805(b) relief, a request to limit the retroactive effect of the revocation or modification must be in the form of, and meet the requirements for, a ruling request generally. These requirements are set forth in section 6. Specifically, the request must state that it is being made pursuant to section 7805(b) of the Code, contain a statement of the relief sought and an explanation of the reasons and arguments in support of the relief requested, and also be accompanied by any documents bearing on the request. The explanation in support of the application of section 7805(b) should include a discussion of the five items enumerated in section 13.05 as they relate to the taxpayer's particular situation. A request for the application of section 7805(b) may take the form of a separate request for a ruling when, for example, a revenue ruling has the effect of modifying or revoking a ruling previously issued to the taxpayer or when the Service notifies the taxpayer of a change in position that will have the effect of revoking or modifying such a ruling. When germane to a pending ruling request, a request for the application of section 7805(b) may be made as part of the request, either initially or at any time before the ruling is issued. When a ruling that concerns a continuing transaction is modified or revoked by, for example, a subsequent revenue ruling, a request to limit the retroactive effect of the modification or revocation of the ruling must be made before a return is examined that contains the transaction that is the subject of the request for a ruling.

.03 When a request for the application of section 7805(b) of the Code is made in a separate ruling request, the taxpayer has the right to a conference in the National Office in accordance with the provisions of section 7. If the request is made initially as part of a pending ruling request or is made before the conference of right is held on the substantive issues, the section 7805(b) issue will be discussed at the taxpayer's one conference of right (see section 7.02). If the request is made as part of a pending ruling request after a conference has been held on the substantive issue, and the Service determines that there is justification for having delayed the request, then the taxpayer will have the right to one conference of right concerning the application of section 7805(b) with the conference limited to discussion of this issue.

.04 In the case of a determination letter that the key District Director proposes to modify or revoke, a request to limit the modification or revocation of the determination letter must be made by requesting the key District Director who issued the determination letter to seek technical advice from the National Office, since a key District Director has not been delegated authority under section 7805(b) of the Code to limit the modification or revocation of a determination letter (except as provided in Delegation Order No. 96 (Rev. 4), regarding certain employee plans letters). The taxpayer's request must state that it is being made pursuant to section 7805(b), contain a statement of the relief sought and an explanation of the reasons and arguments in support of the relief requested, and also be accompanied by any documents bearing on the request. The explanation in support of the application of section 7805(b) should include a discussion of the five items enumerated in section 13.05 as they relate to the taxpayer's particular situation.

.05 When technical advice is requested with respect to the application of section 7805(b) of the Code under the circumstances set forth in .04 above, the taxpayer has a right to a conference in the National Office to the same extent as does a taxpayer who is the subject of a technical advice request involving another section of the Code. See section 6 of Rev. Proc. 80-26.

Sec. 17. Effective Date

This revenue procedure is effective June 30, 1980, the date of its publication in the Internal Revenue Bulletin.