SERVICE ANNOUNCES NEW PROCEDURES FOR SEEKING DETERMINATION LETTERS ON EMPLOYEE PLANS.

Rev. Proc. 87-40

SECTION 1. PURPOSE

As one step in the process of dealing more efficiently with the need for guidance occasioned primarily by the Tax Reform Act of 1986 (TRA), this revenue procedure provides, for specific Code sections, new conditions under which the Employee Plans Technical and Actuarial Division will consider requests for letter rulings pending the adoption of either temporary or final regulations. Under this procedure the Service will be able to issue some rulings that previously would have been precluded by the provisions of section 4.04 of Rev. Proc. 83-36, 1983-1 C.B. 763.

SEC. 2 PROCEDURE

01 Section 4.04 of Rev. Proc. 83-36 is modified to provide that pending the adoption of final or temporary regulations, the Employee Plans Technical and Actuarial Division will consider ruling requests that involve issues within its jurisdiction where the answer seems reasonably certain, but not entirely free from doubt, without any showing that a business emergency exists or that an unusual hardship will result from failure to obtain a ruling.

02 Section 4.04 of Rev. Proc. 83-36 is further modified to except from its conditions the following Code sections:

                      TRA-86

04 When the Service has closed a regulations project (see, for example, the employee plans projects listed in IR 86-18 dated December 9, 1986) or does not intend to open a regulations project (see list below), the Employee Plans Technical and Actuarial Division will entertain all ruling requests unless the issue is covered by the no ruling provisions of Rev. proc. 83-36. The following is a partial list of TRA Code sections for which a tentative decision has been made not to open a regulations project:

                      TRA-86

SEC 3. EFFECT ON OTHER REVENUE PROCEDURES

01 This revenue procedure does not deal with the determination letter program or issues which, pursuant to Section 3.01 of Rev. Proc. 80-30, 1980-1 C.B. 685 would ordinarily be the subject of a request for a determination letter rather than a request for ruling. Notice 86-13, 1986-2 C.B. 377, contains guidance regarding the extent to which the Service is currently issuing determination letters on issues affected by TRA.

02 Section 4.04 of Rev. Proc. 83-36 is modified.

SEC 4. EFFECTIVE DATE

This revenue procedure is effective for requests received prior to August 17, 1987, the date of its publication in the Internal Revenue Bulletin, as well as those received thereafter.