Rev. Proc. 74-19

Section 1. Purpose.

The purpose of this Revenue Procedure is to announce a temporary modification, on a test basis, of the Service's ruling procedure as set forth in Revenue Procedure 72-3, C.B. 1972-1, 698. The test involves the processing of certain ruling requests coming within the jurisdiction of the Reorganization and Excise Tax Branches in the office of the Assistant Commissioner (Technical). Under the test Service personnel will, within seven 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. The test is being instituted to determine the feasibility of such a procedure as a means of providing better service to the public. After the test period, the Service will evaluate the test results to decide if a permanent change in the ruling procedure will be made.

Sec. 2. Scope and Duration.

The test will cover original ruling requests received between July 1, 1974, and December 31, 1974 that meet the requirements set forth in Section 6 of Revenue Procedure 72-3. The test sample will include only those ruling request issues coming within the primary jurisdiction of either the Reorganization Branch of the Income Tax Division (T:I:R) or the Excise Tax Branch of the Miscellaneous and Special Provisions Tax Division (T:MS:EX).

Sec. 3. Temporary Modification.

01. Within seven work days after an original ruling request has been received in the Excise Tax Branch or the Reorganization 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 request. As to each issue coming within the jurisdiction of the Branch, the Branch representative will inform whether, in his opinion:

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

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

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

02. If something less than a fully favorable ruling is indicated, the Branch representative will inform whether, in his opinion, the transaction might be modified so as to permit 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.

03. The Service will not be bound by the informal opinion expressed by the Branch representative to the taxpayer or the authorized representative under this procedure.

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

Sec. 4. Effect on Other Documents.

Sections 6.10 and 7.02 of Revenue Procedure 72-3 are modified for the period July 1, 1974 through December 31, 1974.

Sec. 5. Obsolescence.

This Revenue Procedure is obsolete as of January 1, 1975.