Rev. Proc. 58-14

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to set forth the procedure to be followed where, during the course of an examination of, or an informal conference on, a tax return in the office of a District Director of Internal Revenue, the taxpayer or his representative requests that an issue be referred to the National Office for technical advice but the examining officer or conferee is of the opinion the circumstances do not warrant such action.

SEC. 2. BACKGROUND.

.01 In certain instances, during the course of examinations and informal conferences on tax returns, taxpayers or their representatives request that an issue be referred to the National Office for advice prior to the determination of tax by the District Director of Internal Revenue.

.02 Mimeograph 6293, C. B. 1948-2, 59, provides, in effect, that when, during the course of an examination of a tax return, it is decided that the case involves an issue requiring technical advice from the National Office, the taxpayer or his representative should, except as provided in paragraph 4, be advised (1) that it is proposed to refer the issue to Washington for advice, and (2) that if the taxpayer or his representative so desires, a hearing will be granted in Washington, if there is doubt as to the correctness of the taxpayer's position. The exception stated in paragraph 4 of the mimeograph is that this procedure will not be applicable to matters primarily of internal concern, or in instances where it would be prejudicial to the interests of the Internal Revenue Service.

SEC. 3. PROCEDURE.

.01 During the course of an examination or an informal conference, the taxpayer or his representative may request that an issue be referred to the National Office for technical advice on the grounds that a lack of uniformity exists as to the disposition of that issue, or that the issue is so unusual or complex as to warrant consideration by a National Office specialist. If in the opinion of the examining officer or conferee, the circumstances do not warrant such action, the taxpayer or his representative will be so informed. The taxpayer or his representative will also be advised that if he desires he may, within a specified time, submit a statement of the facts, law and argument with respect to the issue, and the reasons why he believes the issue should be referred to the National Office for advice.

.02 Statements submitted by a taxpayer or his representative will be forwarded through appropriate channels to the Chief, Audit Division, and will be accompanied by a brief statement prepared by the examining officer or conferee, setting forth his views as to why the issue does not warrant referral to the National Office. It will be the responsibility of the Chief, Audit Division, to determine on the basis of the statements submitted, whether advice should be requested from the National Office prior to a determination of the issue. If the Chief, Audit Division, determines that advice from the National Office will not be requested, he will inform the taxpayer, in writing, of his decision.

SEC. 4. SCOPE.

The provisions of this Revenue Procedure apply with respect to issues involved in income, estate, gift, excise, and employment tax cases pending in the offices of the District Director of Internal Revenue.

SEC. 5. INQUIRIES.

Inquiries relating to this Revenue Procedure should be addressed to the Assistant Commissioner (Operations) for the attention of O:A:PPr.