SERVICE TO STOP ISSUING 'COMFORT RULINGS.'

Rev. Proc. 89-34

SECTION 1. BACKGROUND AND PURPOSE

01 Rev. Proc. 89-1, 1989-1 I.R.B. 8, provides procedures for issuing ruling letters involving substantive areas under the jurisdiction of the Associate Chief Counsel (Technical). Section 7 indicates that the issuance of a letter ruling is discretionary with the Service and lists some broad grounds on which it will not issue rulings, such as requests presenting alternative plans of a proposed transaction or hypothetical situations.

02 In order to devote its resources more efficiently to resolving issues in need of attention by the public in general through the issuance of regulations, revenue rulings, and other published guidance, and, ultimately, in order to speed up the issuance of letter rulings not covered by this modification of the Rev. Proc. 89-1, the Office of Associate Chief Counsel (Technical) is discontinuing, except in extraordinary circumstances, the issuance of letter rulings with respect to issues that are clearly and adequately addressed by published authorities.

SEC. 2. PROCEDURE

Rev. Proc. 89-1 is hereby modified as follows:

01 A new section 7.02 is added to provide as follows: "The National Office ordinarily will not issue a ruling with respect to an issue that is clearly and adequately addressed by a statute, regulation, decision of the Supreme Court, tax treaty, revenue ruling, revenue procedure, notice, or other authority published in the Internal Revenue Bulletin except in extraordinary circumstances (e.g., a request for a ruling required by a governmental regulatory authority in order to effectuate a transaction). See section 8.07 for a statement to be included in a request for a ruling. However, the National Office will issue an information letter, as defined in section 4.06, if it believes that providing general information would be helpful."

02 Present sections 7.02, 7.03, and 7.04 are renumbered, respectively, sections 7.03, 7.04, and 7.05.

03 A new section 8.07 is added to provide as follows: "A request for a ruling must contain a statement supporting the taxpayer's judgment that the issue in the ruling request is not clearly and adequately addressed by a statute, regulation, decision of the Supreme Court, tax treaty, revenue ruling, revenue procedure, notice, or other authority published in the Internal Revenue Bulletin. See section 7.02."

04 Present sections 8.07 through 8.23 are renumbered consecutively sections 8.08 through 8.24.

SEC. 3. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 89-1 is modified.

SEC. 4. EFFECTIVE DATE

This revenue procedure applies to all ruling requests postmarked or, if not mailed, received 30 days or more after May 15, 1989, the date of publication of this revenue procedure in the Internal Revenue Bulletin.