Allowing Sneak Peeks at Letter Rulings Is a Mistake, Attorney Says
Allowing Sneak Peeks at Letter Rulings Is a Mistake, Attorney Says
- Institutional AuthorsLaw Office of Wm. Mark Scott PLLC
- Cross-Reference
Responding to Notice 2021-28.
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2021-39179
- Tax Analysts Electronic Citation2021 TNTF 197-17
September 28, 2021
Internal Revenue Service
Attn: CC:PA:LPD:PR (Notice 2021-28)
Room 5203
P.O. Box 7604
Ben Franklin Station Washington, D.C. 20044
Re: Comment for 2021-22 Priority Guidance Plan
Dear Sir or Madam:
The IRS Office of Chief Counsel's private letter ruling process currently incorporates in the final review and approval process an external review of the IRS-drafted letter ruling by the taxpayer's private lawyer. (See attached documents.)
This external review is not public knowledge. Although Rev. Proc. 2020-1 permits taxpayers to submit a proposed private letter ruling in draft, the revenue procedure does not specifically permit taxpayers to review the final draft letter ruling prepared by IRS attorneys. This external review is also not referred to in the I.R.M.
I believe this external review is a mistake. Requiring these reviews taints the impartiality of the private letter ruling process and converts IRS attorneys into nothing more than scribes for private law firms. When I worked at the IRS Office of Chief Counsel (1986-1990), we did not allow taxpayers to review and comment on the draft private letter ruling prior to finalization and I would have found such review process both demeaning and demoralizing.
If these external reviews are to continue, the process should not be secretive. Instead, if this unfortunate practice must continue, Rev. Proc. 2021-1 and the I.R.M. should be updated to specifically require or allow these reviews as it is inappropriate for this review process to remain a secret known only to select outside practitioners.
Very truly yours,
LAW OFFICE OF WM. MARK SCOTT PLLC
Wm. Mark Scott
Washington, D.C.
- Institutional AuthorsLaw Office of Wm. Mark Scott PLLC
- Cross-Reference
Responding to Notice 2021-28.
- Subject Area/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2021-39179
- Tax Analysts Electronic Citation2021 TNTF 197-17