Rev. Proc. 76-29

Sec. 1. Purpose.

The purpose of this Revenue Procedure is to announce that the test program announced in Rev. Proc. 75-23, 1975-1 C.B. 719, with respect to the processing of certain ruling requests, is adopted as a permanent change.

Sec. 2. Background.

Rev. Proc. 74-19, 1974-2 C.B. 465, as modified by Rev. Proc. 75-1, 1975-1 C.B. 642, announced a program under which two Branches in the office of the Assistant Commissioner (Technical), on a test basis, would contact taxpayers or their authorized representatives within 7 work days. This test program expired on January 1, 1975, but was extended to March 31, 1975, by Rev. Proc. 75-1. Rev. Proc. 75-23 announced a further expansion and extension, on a test basis, of the ruling procedure set forth in Rev. Proc. 74-19. Under this further expansion and extension Service personnel, within 15 work days after receipt in the Branch, contact the taxpayer or, if designated, the taxpayer's authorized representative, to discuss informally the procedural and substantive issues involved in the ruling requests. Rev. Proc. 75-23 expired July 1, 1976.

Sec. 3. Scope.

This permanent procedure will cover original ruling requests received on or after July 1, 1976, that meet the requirements set forth in Section 6 of Rev. Proc. 72-3, 1972-1 C.B. 698. The following subject matters will be included:

(1) Individual Income Tax Branch

(a) Partnerships and trusts

(b) Code section 103

(c) Real estate investment trusts

(d) Stock options

(e) Charitable remainder trusts

(f) Pooled income funds

(2) All matters within the jurisdiction of the Corporation Tax Branch except cases

(a) involving a request for change in accounting methods or periods,

(b) relating to the last-in first-out method of computing inventory,

(c) insurance issues involving contracts with reserves based on segregated asset accounts,

(d) insurance issues requiring actuarial computations.

(3) All matters within the jurisdiction of the Wage, Excise and Administrative Provisions Branch, except ruling requests from individuals for employment status submitted on Forms SS-8.

(4) All matters within the jurisdiction of the Engineering and Valuation Branch, Reorganization Branch, and Estate and Gift Tax Branch.

Sec. 4. Procedures to be followed regarding ruling requests received on or after July 1, 1976.

.01 Within 15 work days after an original ruling request has been received in the Branch, a representative of the Branch will contact the taxpayer or the authorized representative to discuss the procedural and substantive issues involved in the ruling requests covered by this procedure. As to each issue coming within the jurisdiction of the Branch, the Branch representative will inform the taxpayer or the authorized representative:

(1) whether the Branch representative will recommend the Service rule as requested by the taxpayer, rule adversely on the matter, or not rule;

(2) whether the taxpayer should submit additional information or representations to enable the Service to rule on the matter; and/or

(3) whether, because of the nature of the transaction, or the issue presented, a tentative conclusion on the issue cannot be reached.

.02 Where the rulings requested involve matters within the jurisdiction of more than one Branch and/or within the jurisdiction of more than one office within the same Branch, a representative of the Branch that received the original ruling request will inform the taxpayer or the authorized representative, within the initial 15 work day contact period, that the rulings requested involving matters within the jurisdiction of another Branch and/or within the jurisdiction of more than one office within the same Branch and covered by this procedure, have been referred to that Branch or office for consideration and that a representative of that Branch or office will contact the taxpayer or the authorized representative within 15 work days of the receipt by that Branch or office of the referral to informally discuss the procedural and substantive issues involved in the matters referred to that Branch or office.

.03 If something less than a fully favorable ruling is indicated with respect to a proposed transaction, the Branch representative will inform the taxpayer or the authorized representative whether, in the Branch representative's opinion, such transaction might be modified so as to warrant issuance of a favorable ruling. If, at the conclusion of the discussion, the Branch representative determines that a meeting in the National Office would better serve the purpose of developing or exchanging information, such a meeting will be offered and an early meeting date arranged. Any such meeting will not constitute the taxpayer's conference of right as described in Section 7.02 of Rev. Proc. 72-3.

.04 The Service will not be bound by the informal opinion expressed by the Branch representative or any other authorized Service representative under this procedure, and such opinion cannot be relied upon as a basis for granting retroactive relief under the provisions of section 7805(b) of the Internal Revenue Code.

.05 The ruling request will thereafter be processed under existing procedures.

Sec. 5. Effective date.

This Revenue Procedure is effective July 1, 1976.

Sec. 6. Effect on other documents.

Rev. Proc. 74-19, Rev. Proc. 75-1, and Rev. Proc. 75-23 are obsolete.