IRS Clarifies Procedures for Requesting Competent Authority Assistance.

Rev. Proc. 91-26

SECTION 1. PURPOSE

This revenue procedure clarifies Revenue Procedure 91-23, 1991- 11, I.R.B. 18, as it relates to the procedures for requesting competent authority assistance when the case is either pending in a U.S. court or has been designated for litigation.

SEC. 2. CLARIFICATIONS

Section 5.03 of Revenue Procedure 91-23 is republished as follows:

03. ADDITIONAL FILINGS. In addition to filing with the U.S. competent authority, the taxpayer must also file a copy of the written request for competent authority assistance with the office of the Internal Revenue Service where the taxpayer's case is pending. If the request for competent authority assistance is filed after the matter has been designated for litigation or while a suit contesting the relevant tax liability of the taxpayer is pending in a U.S. court, a copy of the request must also be filed with the Chief Counsel, Attention: Associate Chief Counsel (International), Internal Revenue Service, Washington, D.C. 20224, with a separate statement attached identifying the court where the suit is pending and the docket number of the action, in addition to copies of all pleadings filed to date.

Section 6.01 of Revenue Procedure 91-23 is republished as follows:

01. GENERAL. The U.S. competent authority will not, without the consent of the Chief Counsel, accept any taxpayer's request for assistance involving a case that is either pending in a U.S. court or has been designated for litigation. If the case is pending in the United States Tax Court, the taxpayer may, in appropriate cases, be asked to join the Internal Revenue Service in a motion to sever issues or delay trial pending completion of the competent authority proceedings. If the case is pending in any other court, the Chief Counsel will consult with the Department of Justice about appropriate action and the taxpayer may, in appropriate cases, be asked to join the U.S. Government in a motion to sever issues or delay trial pending completion of the competent authority proceedings. Final decision on severing issues or delaying trial rests with the court. The filing of a competent authority request does not, however, relieve the taxpayer from taking any action that may be necessary or required with respect to litigation.

SEC. 3. EFFECTIVE DATE

This revenue procedure is effective for requests for competent authority assistance filed after March 18, 1991, the date of publication of Revenue Procedure 91-23 in the Internal Revenue Bulletin.

SEC. 4. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 91-23, 1991-11 I.R.B. 18, is clarified.

DRAFTING INFORMATION

The principal author of this revenue procedure is Eric P. Turner of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure, contact Mr. Turner on (202) 377-9493 (not a toll-free call).