IRS CLARIFIES PROCEDURES FOR EXTENSIONS AND TECH ADVICE REQUESTS.

Rev. Proc. 91-25

SECTION 1. PURPOSE

01 The purpose of this revenue procedure is to modify Rev. Proc. 91-1, 1991-1 I.R.B. 9, and Rev. Proc. 91-2, 1991-1 I.R.B. 38, in several respects. First, the revenue procedure provides that a user fee is required when a request for ruling requesting an extension of time under 1.9100-1 of the Income Tax Regulations is submitted after an examination of the taxpayer's return has begun or during consideration by an Appeals Office. Second, the revenue procedure provides that the Service may in complex cases or those presenting difficult or novel issues request submission of contrary authorities or a statement that none exists. Third, the revenue procedure clarifies that technical advice does not include informal legal memoranda furnished to the submitting office. Fourth, the revenue procedure states that a taxpayer's request for referral of an issue to the National Office for technical advice will not be denied merely because the National Office furnished informal legal memoranda to the submitting office on the matter. Fifth, the revenue procedure states that a taxpayer or the taxpayer's representative may be asked whether the oral request for guidance or information relates to a matter pending before another office of the Service.

SEC. 2. APPLICATION

01 Section 5.02 of Rev. Proc. 91-1 is restated to provide as follows:

The National Office will consider a request for section 1.9100 relief even if submitted after the return covering the issue presented in the section 1.9100 request has been filed, and even if an examination of the return has begun. In such case, the National Office will notify the field office that has examination jurisdiction over the taxpayer's return. Section 1.9100 requests relate to extensions of time for making an election or application for relief under section 1.9100-1 of the Income Tax Regulations. Section 1.9100 requests permitted under this paragraph should be submitted pursuant to Rev. Proc. 79-63, 1979-2 C.B. 578, and section 8 of Rev. Proc. 91-1 (this revenue procedure). Requests should be addressed to the Internal Revenue Service, Associate Chief Counsel (Technical), Attention CC:CORP:T, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044. Section 1.9100 requests, even those submitted after the examination of the taxpayer's return has begun, are ruling requests and therefore require payment of the applicable user fee listed in section 8.01(11) of this revenue procedure.

02 Section 5.03 of Rev. Proc. 91-2 is deleted and section 8.08 of Rev. Proc. 91-2 is restated to provide as follows:

Requests for an extension of time or other application for relief under section 1.9100-1 of the Income Tax Regulations made after the examination of the taxpayer's return has begun are ruling requests and therefore are subject to the procedures of section 5.02 of Rev. Proc. 91-1, 1991-1 I.R.B. 9, and require payment of the applicable user fee listed in section 8.01(11) of Rev. Proc. 91-1. All such requests must be submitted to the National Office by the taxpayer and addressed to the Internal Revenue Service, Associate Chief Counsel (Technical), Attention CC:CORP:T, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044. The National Office will notify the field office considering the return (Examination or Appeals) that a request for section 1.9100 relief has been submitted to the National Office. The letter ruling will be mailed to the taxpayer and the appropriate field office will be sent a copy.

03 Two sentences are added to the end of the second paragraph of section 8.01(6) of Rev. Proc. 91-1 to provide as follows.

If contrary authority is not furnished with the letter ruling request and there is no accompanying statement that none exists, the Service in complex cases or those presenting difficult or novel issues may request submission of contrary authorities or a statement that none exists. Failure to comply with this request may result in the Service's refusal to issue a letter ruling.

04 A sentence is added to the end of the second paragraph of section 7.01 of Rev. Proc. 91-2 to provide as follows:

If contrary authority is not furnished with the request and there is no accompanying statement that none exists, the Service in complex cases or those presenting difficult or novel issues may request submission of contrary authorities or a statement that none exists.

05 Section 2 of Rev. Proc. 91-2 is restated to provide as follows:

"Technical advice" means advice or guidance in the form of a memorandum furnished by the Office of Associate Chief Counsel (Technical) (hereafter referred to as the "National Office") upon the request of a District Director or a Chief, Appeals Office, submitted in accordance with the procedures for requesting technical advice in this revenue procedure, in response to any technical or procedural question that develops during any proceeding on the interpretation and proper application to a specific set of facts of tax law, tax treaties, regulations, revenue rulings, notices or other precedents published by the National Office. Such proceedings include (1) the examination of a taxpayer's return, (2) consideration of a taxpayer's claim for refund or credit, or (3) any other matter involving a specific taxpayer under the jurisdiction of the Chief, Examination Division, or the Chief, Appeals Office, such as an examination to determine whether obligations issued are described in section 103(a) of the Code. They also include processing and considering nondocketed cases in an Appeals Office. However, they do not include cases in which the issue in the case is in a docketed case for that year or for any prior or subsequent year.

Technical advice is furnished as a way of helping Service personnel close cases and establish and maintain consistent holdings throughout the Internal Revenue Service. A District Director or an Appeals Office may raise an issue in any tax period, even though technical advice may have been asked for and furnished for the same or a similar issue for another tax period. Technical advice does not include informal legal memoranda furnished to the submitting office.

06 A sentence is added to the end of section 9.01 of Rev. Proc. 91-2 to provide as follows:

A taxpayer's request for such a referral will not be denied merely because the National Office furnished informal legal memoranda to the submitting office on the matter.

07 The second paragraph of section 2.05(2) of Rev. Proc. 91-1 is restated to provide as follows:

The taxpayer or the taxpayer's representative may be asked whether the oral request for guidance or information relates to a matter pending before another office of the Service. Substantive tax issues involving the taxpayer that are under examination or in litigation will not be discussed by Service employees not involved in the examination or litigation of such issues. However, a tax issue may be discussed even though the issue is affected by a nontax issue pending in litigation.

SEC. 3. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 91-1 and Rev. Proc. 91-2 are modified.

SEC. 4. EFFECTIVE DATE

This revenue procedure applies to requests postmarked or delivered after June 18, 1991.