01-13-04 Eddie Kahn

Eddie Kahn Has Researched Tax Systems for Over 20 Years.
Search This Site
Site Map
International Income Tax

Welcome to Eddie Kahn's Web site!
Documents:
All Americans MUST Read Eddie Kahn, internationally known as an author and lecturer, has researched tax systems for
Articles of Confederation over 20 years. A much sought after speaker, Mr. Kahn travels extensively to conduct seminars
Bill of Rights based on his "how to" book, "No Enforcement Statutes / IRS Regulations Applicable for
Declaration of Independence Individual Income Tax." His seminars and educational materials, distributed by Eddie Kahn &
Rendering Caesar His Due
The Constitution
Associates (EKA), have helped thousands to understand our tax system and take a proactive
Open Letter To IRS & DOJ and successful stance with the IRS. Mr. Kahn is the founder of American Rights Litigators
(ARL), a professional organization that utilizes aggressive CPA's and attorneys dedicated to
Reference Documents protecting and legally representing the rights of American citizens. ARL, founded in 1996, is
23C Assessment located in Mt. Plymouth, Florida. Mr. Kahn has kept international crowds on the edge of their
Implied Notice of Levy seats with his current, useful, and precise clarifications of deceptive tax practices of taxing
63 Million American Non-filers authorities in Australia and New Zealand as well as in the United States.
Bribes at the IRS
Claudie Baker Letter
CP 515
Don't get a marriage license
Due Process Transcripts Changes Taking Place on 8-22-2003.
IRS Not a Gov't Agency
IRS Restricting and Reform Act
Liens Removed
Misapplication of IRS Code §...
ARL Members Please Read!
Order of Authority
Communist Manifesto
Where Money Comes From
1.861-8 Letter Visit our "What's New" Page
1913 Congressional Debate
Quashing a 3rd Party Summons
Pocket Commission
FDCPA
http://www.eddiekahn.com/ (1 of 3) [1/13/2004 8:12:54 PM]

2039 Summons
Levy Notice 668-B
Unlawful Speed
Importance of Court Decisions
Tax Assessment
Defending a Trust
Expatriation Act
Missing Amendment If you have problems with this site contact webmaster@eddiekahn.com
Liens Income or Estate Tax
Chief says Tax is Voluntary!
Notification of Birth
CFR26 1.1-1 This web site has been prepared by, or on behalf of Eddie Ray: Kahn for general information purposes only. It does not
Fed. Grand Juror Handbook constitute legal advice. Moreover, the information is presented without any representation or warranty whatsoever, including
as to the accuracy or completeness of the information. The documents, web site links, etc. do not always coincide with the
Sample/Example Documents opinions of Eddie Ray: Kahn, and are strictly for your information only. Links to information on sites other than those
Privacy Act Request operated by, or on behalf of Eddie Ray: Kahn is for your convenience only and is not an endorsement or recommendation of
FOIA Request those sites. Please note that any views or opinions presented on this web site are solely those of the individual and do not
Public Servant Questionnaire necessarily represent those of Eddie Ray: Kahn. Eddie Ray: Kahn accepts no liability for the content of this web site, or for
W-4 Letter the consequences of any actions taken on the basis of the information provided.
W-9 Letter
Form 911
Form 433a [ HOME | DOCUMENTS | EDDIE'S SEMINARS | FAQ | RELATED LINKS | CONTACT EDDIE | SEARCH | WHAT'S NEW |
IRS Agent Combs Letter INTERNATIONAL TAX INFORMATION ]
The Determination Letter
112C Letter
1040 for the IRS
Commercial Affidavit
3 Former IRS Agents Expose...
6103 Unlawful Disclosure
ARL Application
Congressmen Speak Truth
Contact House and Senate
Court Decisions
Eighth Commandment
Enforcement Actions
Eddie's Private Page
FAQs
Federal Legislative Jurisdiction
Ghost of Valley Forge

Internet Tips and Tricks
Jokes
Links
Noah in 2002
Quotes
Republic Under Siege
Seminar Schedule
We The People
What is the Church
What Happened to the 56 Men
What's New

Australia, Canada, New Zealand, & USA IncomeTax Information
Welcome to Eddie Kahn's International Income

Tax Information web site.
United States of
Australia New Zealand Canada America
(EddieKahn.com)
Original Intent of Income Tax Laws

Income Tax has not always been in existence. It came into
play for a specific reason and those reasons have long
passed. So, why do we still have the tax?
Below are links to documents that state the original intent of
Income Tax Laws for Australia, New Zealand, Canada and the
United States of America.
United States of
Australia New Zealand Canada
America
Note: Some of these documents will take a while to load.
Most of the documents on this site are in Adobe Acrobat Reader format. If you do not have the FREE version of
Adobe Acrobat Reader installed on your computer, please Click the Adobe icon below.
http://www.eddiekahn.com/intl/index.htm (1 of 2) [1/13/2004 8:12:55 PM]

Australia, Canada, New Zealand, & USA IncomeTax Information
[ INTERNATIONAL TAX INFORMATION | AUSTRALIA | CANADA | NEW ZEALAND | EDDIE KAHN ]
http://www.eddiekahn.com/intl/index.htm (2 of 2) [1/13/2004 8:12:55 PM]

New Stuff on EddieKahn.com
What's New
Check back often. All new additions to this web site will be linked to from here.
This page was last updated on Tuesday, January 06, 2004
Federal Legislative Jurisdiction in Florida - These

are documents that we found in the Florida
Secretary of State's Office regarding federal
legislative jurisdiction in Florida.
Catalog of Federal Tax Forms, Form Letters, and
Notices (publication 676)
DOJ Manual
Territorial Jurisdiction
Delegation Orders
http://www.eddiekahn.com/what.htm (1 of 3) [1/13/2004 8:12:56 PM]

3 Former IRS Agents Expose Newest Gov't Scheme

-
ARL Is moving!
God's Eighth Commandment is: "Thou Shall Not
Steal."
6103 Unlawful Disclosure of Tax Return Information
- The courts consistently ruled that the filing of a
notice of lien or levy was not a violation of 26 USC
6103.
Handbook for Federal Grand Jurors - This is the
shadowy group of people that hardly anyone
knows anything about.
World Goal codified - Title 8 United States Code
Section 1101(a)(40)
What is the Church -
If Noah lived here today...
"Please Prosecute Me" Says Larken Rose
Taking "Enforcement Actions" using
Nonenforcement Pocket Commissions - John
Turner comments on Wall Street Journal article
regarding enforcement actions.
CFR26 1.1-1 - Regulation identifying income tax on

individuals.
Notification of Birth Registration - The question is:
why would the State take the time and trouble to
notify the U. S. Department of Commerce of this
persons birth?
Income Tax is 100% voluntary... According to IRS
Chief - Mr. Avis, Former Head of the IRS says so!
Search Page - Search our site.
[ HOME | DOCUMENTS | EDDIE'S SEMINARS | FAQ | RELATED LINKS | CONTACT EDDIE | SEARCH |
WHAT'S NEW | INTERNATIONAL TAX INFORMATION ]

Search Page
Search Eddie Kahn's Site

Use the form below to search for web pages in this site containing specific words or combinations
of words. This search will not find specific pdf documents. The text search engine will display a
weighted list of matching documents, with better matches shown first. Each list item is a link to a
matching document; if the document has a title it will be shown, otherwise only the document's file
name is displayed. A brief explanation of the query language is available, along with examples.
Search Eddie's site for:
Start Search Clear
Query Language
The text search engine allows queries to be formed from arbitrary Boolean expressions containing the
keywords AND, OR, and NOT, and grouped with parentheses. For example:
information retrieval
finds documents containing 'information' or 'retrieval'
information or retrieval
same as above
information and retrieval

finds documents containing both 'information' and 'retrieval'
information not retrieval
http://www.eddiekahn.com/search.htm (1 of 2) [1/13/2004 8:12:56 PM]

Search Page
finds documents containing 'information' but not 'retrieval'
(information not retrieval) and WAIS

finds documents containing 'WAIS', plus 'information' but not 'retrieval'
web*
finds documents containing words starting with 'web'
Back to Top
http://www.eddiekahn.com/search.htm (2 of 2) [1/13/2004 8:12:56 PM]

Contact Eddie Kahn
Contact Eddie Kahn

Eddie can be reached at the office of American Rights Litigators
between 10:00am - 12:00pm and 2:00pm - 4:00pm Monday through
Friday.
American Rights Litigators office address is:
c/o 25525 State Road 46
Mount Plymouth, Florida [32776]
(352) 383-9100
http://www.eddiekahn.com/contact.htm [1/13/2004 8:12:56 PM]

Seminar Schedule
Current Seminar Schedule:
Date: Location: Contact Person:
October 11, 2003 Denver, Colorado Carol & Dennis Wagner

Click for Flyer** (970) 226-4246
carolwagner@attbi.com
October 19 - 21, 2003 Las Vegas, Nevada* USA Hosts

Click for Flyer** (702) 798-8309
www.usahosts.com/events.php
*Mr. Kahn is one of several speakers at this conference
**Must have Adobe Reader to view. Get it HERE for FREE!
Seminars are hosted by anyone desiring to set up a speaking engagement. If you are interested in hosting a
seminar, please call Kookie at (352) 735-4500. If you are interested in attending a seminar, call the contact
person to find out details of their seminar.
For information regarding topics discussed at the seminar click here for the seminar syllabus.
Conference Call – 8:00 PM Eastern Time – (610) 856-7990

Mr. Kahn conducts a conference call (interactive) every other Tuesday. These conference calls are our
method of keeping everyone as up to date as possible concerning IRS matters. The conference calls last
approximately 45 minutes and are limited to the first 60 callers.
Conference Call Dates for 2003:
http://www.eddiekahn.com/seminar.htm (1 of 2) [1/13/2004 8:12:56 PM]

Seminar Schedule
February 11th March 11th April 8th May 6th

February 25th March 25th April 22nd May 20th
July 1st
June 3rd August 12th September 9th
July 15th
June 17th August 26th September 23rd
July 29th
December 2nd
October 7th November 4th
December 16th
October 21st November 18th
December 30th
Topics for Possible Conference Call Discussions:

* Determining what tax, if any, for which you are liable.
* Use of the Freedom of Information Act and the Privacy Act to determine if you are liable for a tax.
* Does the IRS exist as an agency of the Government.
* How to get documents to determine whether the IRS is an agency of the Federal Government.
* W-4 Withholding
* Liens, Levies and Wage Garnishment
* Social Security
This page was last updated 09/15/03
[ HOME | DOCUMENTS | EDDIE'S SEMINARS | FAQ | RELATED LINKS | CONTACT EDDIE | SEARCH | WHAT'S
NEW | INTERNATIONAL TAX INFORMATION ]
http://www.eddiekahn.com/seminar.htm (2 of 2) [1/13/2004 8:12:56 PM]

Related Internet Links
Links
We do not endorse the full content of these sites and can not guarantee that
they will be functional.
Updated 01/05/04
Law and Research Registry - The Law Research & Registry web site has seven primary elements:
1) The research project, 2) Products & Services registry, 3) Public Services registry, 4) Seminal
and Meetings calendar, 5) Seminar and meeting reports and minutes, 6) A constitutionalist forum
for developing political objectives, 7) Statutes, Code of Federal Regulations, Executive Orders,
government documents, etc.
Tax Truth News - Exposing the deceptive practices of the IRS
Jack Gillen Seminars -Jack Gillen, Astro-Statistician, is the only person in the world to predict air
disasters, market trends, earthquakes, hurricanes, tornadoes, death of dominate people, wars,
winners at the horse and greyhound tracks, lottery numbers, sporting events, to name a few. His
exact predictions have brought him recognition in every major newspaper from the Wall Street
Journal to USA Today. He's been the topic of talk media from Johnny Carson to Larry King. In
his career from the 1960's-90's, he's published 556 newsletters, and 48 books, plus hundreds of
radio and television shows. He was the first in his field to be presented in a world-wide television
special.
Conservative Petitions - Please act NOW to undo one more nightmarish Clinton "legacy"! Bill
Clinton signed the United Nations International Criminal Court Treaty, and even though the U.S.
Senate has refused to consider it, the U.N. is insisting it apply as soon as 60 countries have signed
on - and they're counting the Clinton administration's signature as one.
Family Guardian - Protecting American families and individuals from persecution, exploitation,
socialism, divorce, and sin.
http://www.eddiekahn.com/links.htm (1 of 3) [1/13/2004 8:12:57 PM]

The Liberty Committee - This Committee was formed in 1999 by a group of men and women who
embrace the treasured proclamation of 1776 that "...all men are endowed by their Creator with
certain unalienable rights; that among these are life, liberty and the pursuit of happiness...." They
take a position for or against legislation based on constitutional principles. We want to work hard
to keep these people in office!!! We urge that you do too!
Treasury Inspector General for Tax Administration - This site contains information that permits a
person to file a complaint against IRS personnel. Check it out!
AntiShyster News Magazine - Free legal magazine! Tax and legal information aplenty!
National Archives and Records Administration - NARA is an independent Federal agency that
helps preserve our nation's history by overseeing the management of all Federal records. Their
mission is to ensure ready access to the essential evidence that documents the rights of American
citizens, the actions of Federal officials, and the national experience.
The Money Masters - Understand how international bankers gain control of America. This
3 1/2 hour, fast-paced, non-fiction, historical documentary video throws back the veil of deceit
hiding the origins and operations of the corrupt banking plutocracy that owns and rules America,
and is gradually and clandestinely imposing a worldwide tyranny on the rest of mankind.
The Aware Group - The AWARE Group is a private, family oriented club, established solely for
the purpose of sharing Research, Teaching, and where necessary, giving Assistance to its members
with regard to law and lawful status. The Club’s primary objective is to share legal knowledge, to
educate all members how to understand and use the legal system in a lawful manner and to bring
the Sovereign American people back together as a whole, restoring peace and harmony among all.
Media Bypass "The Uncensored National News" - Their mission is to: educate Americans with
regard to their unalienable rights guaranteed by our Constitution and Bill of Rights. To
investigate and publish the relevant news that is withheld by the mainstream media. To expose
and raise public awareness of disinformation and injustices perpetrated by government. To
advance alternatives and support those working to preserve and restore traditional American
values.
Law Notes Web Site - Common Law Ramblings and other neat stuff. You never learned this in
law school!
Mercy Seat Christian Church - This is where we got the "5 Reasons why Christians should not
obtain a state marriage license" article.
IRS Forms and Publications - This is a link to the IRS Forms and publications web site. Get all the
forms you need.
We The People - The We the People Foundation for Constitutional Education, Inc. was founded
for the basic purpose of conducting a statewide educational effort aimed at supplying the general
citizenry with information and understanding about the New York State Constitution, about its
importance in maintaining individual liberty and popular sovereignty, about the necessity for

citizens maintaining an attitude of vigilance against the wrongdoings that can occur when that
Constitution is misinterpreted or disregarded by the governments it governs, and about the actions
that must be taken in translating citizen knowledge into productive activity that will bring
remedial pressure to bear against inappropriate State and local governmental actions and activities
and that will achieve necessary reforms via constitutional processes. They also publish great ads in
national newspapers.
Taxable Income - Larken Rose’s "Taxable Income" report shows that the actual federal income
tax statutes and regulations do not show the income of most Americans to be taxable.
Arrow Custom Plastics - This business does not withhold money from it's workers. See their
Withholding Statement to find out why.
Freedom over Fortune - Freedom Above Fortune was founded by Joseph R. (Joe) Banister, a
former IRS Criminal Investigation Division Special Agent who learned of serious constitutional
questions relating to the federal income tax and the federal banking and monetary systems. Mr.
Banister’s expertise in the fields of accounting, finance, taxation, and law enforcement enabled him
to not only understand these issues but realize that he could play a role in bringing the issues into
the public arena for analysis and debate.
Contact the Senate: http://www.senate.gov/contacting/index.cfm
Contact the House: http://www.house.gov/house/MemberWWW.html

Frequently Asked Questions
Eddie Kahn's Most Frequently Asked

Questions
1. Am I REQUIRED to file a form 1040?
2. Does the Internal Revenue Service (IRS) have the authority to garnish my wages?
3. Is the IRS an agency of the federal government?
4. Is EVERYONE required to file a form 1040?
5. Does the IRS have lawful authority to lien/levy?
6. Who does the IRS collect money for?
7. In your opinion what is the best way to deal with the IRS?
8. What is the one single thing that identifies you as "federal personnel?"
NOTE: All answers are based on Eddie's research of the law.
Am I REQUIRED to file a form 1040?

There is no requirement for filing a form 1040 listed by reference in the Federal Register - a
requirement of law if applicable to the General Public (see 42 USC Section 1505). A Freedom of
Information Act (FOIA) request was sent to Charles Rossotti, asking him to search and find out if
the requirement really exists. The answer from his office was: "There is no law that requires
anyone to file a 1040 form."
Back to Top
http://www.eddiekahn.com/faq.htm (1 of 3) [1/13/2004 8:12:57 PM]

Does the IRS have the authority to garnish my wages?

No one has the authority to garnish wages without a court judgment - including the IRS.
Back to Top
Is the IRS an agency of the federal government?

There has been no legislative act of congress that has created the Internal, Revenue Service - a
requirement of law (see Media Bypass open letter).
Back to Top
Is EVERYONE required to file a 1040 form?

The Internal Revenue Service has a code in their 6209 manual that states "not required to file or
mail a return." Many people have that designation and are not aware of it.
Back to Top
Does the IRS have lawful authority to lien/levy?

Not unless you live in Washington D.C., enclaves, or territories belonging to the federal
government.
Back to Top
Who does the IRS collect money for?

The IRS supposedly works directly for the US Secretary of the Treasury, who is Governor of the
International Monetary Fund. Our research indicates that all the money collected by the IRS goes
directly to the International Monetary Fund in partial payment of the US debt.
Back to Top

In your opinion what is the best way to deal with the IRS?
You are involved in a master/servant relationship. If you act like a master and treat them like a
servant you get much better results. We have a program that can show you how to do that.
Back to Top
What is the one single thing that identifies you as "Federal

Personnel?"
Your application and acceptance of the Social Security Program of the United States Government
(See 5 USC 552a (13)).
Back to Top

Documents
Documents
Documents All American Should Read
Sample/Example Documents
Reference Documents
http://www.eddiekahn.com/documents.htm [1/13/2004 8:12:57 PM]

Must Read Documents
Documents that All Americans should read and

understand!
Articles of Confederation
Bill of Rights
Declaration of Independence
The Constitution of the United States of America - This is the most important document that you
will ever read. It gives the federal government limited authority and enumerates certain freedoms
that we have that the government can NEVER take away... Unless you did not know that they
existed in the first place. Just remember, if you do not know your rights, you do not
have any!
Sam Adams - Rendering Caesar His Due - This document written by Sam Adams discusses what
every Christian should know about "Rendering Caesar His Due." (Adobe Acrobat format)
How our Laws are Made - This brochure is intended to provide a basic outline of the numerous
steps of our federal lawmaking process from the source of an idea for a legislative proposal
through its publication as a statute. The legislative process is a matter about which every citizen
should be well informed in order to understand and appreciate the work of Congress.
Most of the documents on this site are in Adobe Acrobat Reader format (PDF). If you do not have
the FREE version of Adobe Acrobat Reader installed on your computer, please Click the Adobe
icon below.
http://www.eddiekahn.com/MUST/document-must.htm (1 of 2) [1/13/2004 8:12:57 PM]

Must Read Documents
http://www.eddiekahn.com/MUST/document-must.htm (2 of 2) [1/13/2004 8:12:57 PM]

A Christian Response to the Income Tax by Sam Adams
Most Christians in America believe it is their moral, legal, and Biblical duty to send in
their form 1040's every April and pay what is known as the income tax, mistakenly
believing they are “rendering to Caesar that which is his.” Many do so believing God will
not hold them accountable for where the money is going or what type of destructive
socialistic programs or other ungodly abortionists anti-Christian, anti-family or anti-
American globalists agendas are being funded by their money. Many Christians are not
at all bothered by the fact that all told their government asks for over five times the
proportion of their earnings than Almighty God requires. And most Christians in
America are sadly so ignorant of the Constitution and are so trusting in their
increasingly secular humanist government that even when presented with the evidence,
they refuse to believe that they in fact in most cases have no Biblical, moral, or legal
duty to file a form 1040 or pay the “income tax.”
In recent years, it has increasingly come to light that the American people have
throughout most of this century been duped by what is probably the most colossal fraud
ever perpetrated by any government against its own people. This fraud has resulted in
a tyranny far worse than our founding fathers took up arms against or would have
imagined could arise under the Constitution they left to us. But tragically and to our
extreme detriment, the Constitution, the surpreme law of the land, is being ignored and
by-passed by socialist and totalitarian forces in our government that are attempting to
replace the Constitution with their own “laws” which are stripping us of the freedoms
and "unalienable rights" our Christian forefathers were willing to fight and die for, and
are quickly leading us to the brink of the absorption of America into the totaltarian "New
World Order" global government of the antichrist.
These satanically inspired forces have replaced the Constitutional protection of free
speech and the free exercise of religion with the expulsion of the Bible and Chrisianity
from the public arena. The Constitution's strict limitation on legal tender to gold and
sliver coin (Art. 1 Sec. 10) has been replaced with a worthless paper dollar economy
manipulated and controlled by the Federal Reserve System which is not a government
agency as many believe, but is actually part of a private banking cartel run by an elite
group of international financiers, whose well documented goal is global economic
control and abolition of national sovereignty. The right to keep and bear arms, intended
by the framers to allow the citizenry to protect themselves from the rise of tyrannical
government, has been replaced with “gun control” and the right of the Federal
Government to attack, murder, and burn down any government defined cult accused of
having illegal weapons; women and children included. The 5th and 14th amendments
to the Constitution were worded to protect our God-given, unalienable rights to “life,
liberty, and property.” The right to life has been replaced with the “right” to abortion on
demand. And our unalienable rights to liberty and property? Well, then there's the
IRS...
Back to the world's biggest fraud mentioned earlier. Do you believe that you are
required by law to pay a tax on your income? The theory of “cognitive dissonance”
asserts that because you have been consistently fed and have come to believe
contrary information, you will at first tend to reject the following true fact: U.S. citizens
and resident aliens living in and earning wages within the 50 States of the Union are
not legally required to pay any tax on their earnings! Filing of tax return form 1040 and
payment of the “income tax” is strictly VOLUNTARY! There is NO LAW, which requires
ANYONE to file form 1040. Yes, it does sound too good to be true. But you are
challenged to check out the following facts for yourself as they are easily verifiable,
beginning with as Exhibit A your 1993 form 1040 instruction booklet, in which on page
3, the IRS Commissioner describes our tax system as “the most effective system of
voluntary compliance in the world” (emphasis added). While instruction manuals for
preceding years used similar revealing language to describe our tax system (the 1992
manual said “you are among the millions of Americans who comply with the tax law
voluntarily", the phrase was deleted in the 1994 manual, probably because too many
ordinary American citizens were finding out the truth and are standing up for their God
given rights. The use of the term “voluntary” is not accidental. It is not misused, and it is
definitely never used to describe any of the other types of legally applied taxes and
excises such as the gas and alcohol taxes which are quite mandatory. The word
“voluntary” is a legal term; the reason for its use is that for U.S. citizens and resident
aliens, payment of the income tax is absolutely without distraint or legal obligation.
The Constitution allows Congress to raise revenues through two types of taxes, direct
taxes, which are taxes assessed by Congress (not self-assessed) and are subject to
the rule or apportionment in the same way Representatives to the House are
apportioned among the States by population (Art. 1, Sec. 2, Cl. 3); and indirect taxes
(imposts, duties, and excise taxes such as gas tax or license fees) which are subject to
the rule of uniformity (Art. 1, Sec. 8, Cl. 1). Neither of these categories of taxation allow
for the current system of a graduated or progressive bracketed income tax, which
happens to be the second plank of Karl Marx's ten plank “Communist Manifesto”,
written in 1848 to propose ten steps necessary to convert a free enterprise society to
communism. In 1894, Congress passed an act to tax incomes of citizens and resident
aliens of the United States, which was struck down the following year by the Supreme
Court as unconstitutional because it was a direct tax not apportioned as the
Constitution requires. The Supreme Court agreed with the plaintiff attorney's argument
that the tax was communistic in its intentions; the Court Opinion by Justice Field said
"Here I close my opinion. I could not say less in view of questions of such gravity that go
down to the very foundations of government. If the provisions of the Constitution can be
set aside by an act of Congress where is the course of usurpation to end? The present
assault upon capital is but the beginning... " (Pollack v. Farmer's Loan & Trust CO, .
157 US 429, 1895).
The socialists resourse was to revise the Constitution. The 16th Amendment passed by
Congress in 1909 and allegedly (but quite questionably) ratified by 3/4 of the States in
1913, reads “The Congess shall have power to lay and collect taxes an incomes from
whatever source derived, without apportionment among the several states and without
regard to any census or enumeration”. While this sounds as if the Constitution was
changed to allow a direct tax without apportionment (which the IRS continues to Claim),
the U.S. Supreme Court ruled in 1916 that the 16th amendment did not change the
Constitution since Art. 1, Sec. 2, Cl. 3 and Art. 1, Sec. 9, Cl. 4 were not repealed or
altered, and the Constitution cannot contradict itself. Thus, the income tax was ruled to
be an indirect tax (Brushaber v. Union Pacific R.R. Co. 240 U.S. p.16.). In another 1916
decision (Stanton V. Baltic Mining Co,, 240 U.S. 112), the Supreme Court said that by
the previous ruling [Brushaber] “it was settled that the provisions of the sixteenth
amendment conferred no new power of taxation but simply prohibited the previous
complete and pienary power of income taxation possessed by Congress from the
beginning from being taken out of the category of indirect taxation to which it inherently
belonged..". The income tax allowed by the 16th Amendment is then an indirect excise
tax, subject to the rule of uniformity (cannot be graduated or progressive), and defined
by the Supreme Court as follows: “Excises are taxes, laid upon the manufacture, sale,
or consumption of Commodities within the country, upon licenses to pursue certain
occupations and upon corporate privileges... it is the privilege which is the subject of the
tax and not the mere buying, selling or handling of goods." Has our government then
turned the God-given mandate and unalienable right to earn a living into a government
granted privilege? While the IRS wants you to believe that this is the case, the
Supreme Court has ruled repeatedly that our unalienable property rights include that
right to exchange labor (field by the court to be the most sacred and inviolable form of
personal property) for other properties such as wages, tips, and other compensation. If
the exercise of rights were subject to taxation, the rights could be destroyed by
increasing the tax to unaffordable levels. Recognizing this, the courts have consistently
ruled that government has no power to tax citizens' rights, such as in the 1943
Supreme Court ruling that “a state may not impose a charge for the enjoyment or a
right granted by the Federal Constitution” (Murdock v, Pennsylvania, 319 U.S. 105
p.113, 1943). Your right to exchange your labor for other property is not a taxable
privilege, it is a right, which cannot be subjected to a mandatory tax.
Another right which is protected in the 5th Amendment to the Constitution is the
freedom from compulsion by the government to testify or provide any evidence which
can be used against us in a court of law. But because of our blind trust in the
government, in our delusions that it is our government's intention to protect rather than
to usurp our rights, we fail to recognize that every time we file a tax return (“under
penalty or perjury”), provide records to the IRS or submit to an IRS audit, we unwittingly
waive our 5th Amendment rights, and we do so under threat, intimidation. and coercion
by government officials. Our rights must be aggressively asserted, if not, they are
assumed to have been waived. There is no law requiring U.S. citizens protected under
the Constitution to file income tax returns. Any such law would be a direct violation of
the 5th Amendment. The wonderful truth is that the tax laws as written into the Internal
Revenue Code are Constitutional, but they are being fraudulently misapplied and
illegally enforced. The Internal Revenue Code nowhere requires U.S. citizens or
resident aliens to pay any tax on personal incomes carried within the 50 states. The
only groups legally required to file tax returns are withholding agents for non-resident
aliens, foreign corporations, and foreign tax exempt organizations earning income
within the States. Additionally, Americans working abroad in certain countries bound by
tax treaties are required to file income tax forms 2555 (not 1040). The section of the IR
Code that authorizes withholding of monies for income tax purposes is section
7701(a)(16) and such withholding is only authorized under sections 1441
(non-residential aliens), 1442 foreign corporations, 1443 (foreign tax exempt
organizations), and 1461 (withholding agents). Tax withholding for all these entities is
not graduated, but is a flat 30% (rule of uniformity). Americans are duped into the
system by being deceived into believing they must acquire an identifying number
before they may be granted The “privilege” of earning a living. By applying for this
“social security” number and entering it on an IRS form W-4, American citizens
voluntarily become contractually bound as “taxpayers” and unnecessarily become the
financial supporters of an increasingly corrupt, evil, and socialist state. Those that go to
jail for “income tax evasion” usually do so for committing contract fraud or perjury by
lying on their tax returns. THERE IS NO LAW which requires a U.S. citizen to have a
social security number or sign a form W-4 to earn a Iiving. The right to exchange labor
for money is NOT a privileged taxable activity. THERE IS NO LAW requiring US
Citizens to file form 1040 income tax returns for US citizens working within the US,
payment of the “social security” and income tax must by law be strictly VOLUNTARY.
Biblical / Theological Considerations
How should Christians respond to this information? What is our responsibility under the
law and according to the Word of God? Our Lord commands that we render to Caesar
that which is Caesar’s and to God that which is God's (Matt. 22:21). Many Christians
are quick to quote the first part of that phrase (render to Caesar), but forget the latter.
And too many Christians prioritize their “rendering” in the same order, tithing to God
only if they have enough left after rendering to “Caesar”. In so doing, Christians are
rendering to “Caesar” that which belongs to God! Christians must realize that it is
absolute BLASPHEMY for our government to require (fraudulently) 50-70% of our
income all told, between income, social security, excise, sales and property taxes
(making Americans the most heavily taxed people in the world), when Almighty God
only requires a tithe or 10% and it is idolatrous for Christians to prioritize support for a
social system that by its onerous taxation exalts itself over the Creator and that has
attempted to usurp God's rightful position as our provider, though the failed socialistic
“welfare” and “social security” system that thwarts the doctrine of Scripture “he who will
not work shall not eat”. This usurpation has been aided, abetted and even enhanced by
an apostate and ignorant church that has by its incorporation under Internal Revenue
50i(c)3 regulations legally become a creation of the state rather than an independent
entity under the sovereignty of God. The Church is actually immune from taxation under
our Constitution, rather than merely exempt from taxation as many churches have
become under 50i(c)13 status, which is in reality only a government granted license or
privilege. By incorporating under 50i(c)3 status, churches have bowed their knee to
Caesar and practically denied the Lordship of Christ, having placed themselves in the
same legal category as “Corporations, and any community chest, fund, or foundation
organized and operated exclusivity for religious, charitable, scientific testing for public
safety, literary, or educational purposes or to foster national or international amateur
sports competition... no substantial part of the activities of which is carrying on
propaganda or otherwise attempting to influence legislation.." (IR Code Section 50i(c)3.
Churches have been effectively silenced from speaking out on the issues of our day to
maintain “tax exempt” status, while they actually use this corrupt and ungodly tax
system as an incentive to make appeals for “tax deductible contributions” to fund their
building programs, and we wonder why the Church has become so ineffective in our
society!
Back to Matthew 22:21, “Render therefore unto Caesar the things which are Caesar's;
and unto God, the things that are God's”. Now, as the Apostle Peter said, “gird up your
mind for action”: Filing a 1040 and paying the income tax is NOT rendering to Caesar!
Every Christian desiring to be obedient to the Lord's directive in Matthew 22:21 must
answer this question, Who is Caesar in America? At the time of Christ, Caesar himself
represented the highest civil law of the Roman Empire. The Roman Senate had long
since lost its political power; the republic had become a dictatorship and Caesar ruled
by decree. But who is Caesar in America? Is it the President? Is it the Congress? The
Supreme Court? Let us help you with the answer: the highest law of the land in
America is the CONSTITUTION. Every branch of the Federal government answers to
the Constitution. Every State, County, and municipal government answers to the
Constitution. In 1803, the Supreme Court ruled that “all laws which are repugnant to the
Constitution are null and void” (Marbury v Madison, 5 US (2 Cranch) 137, 174, 170). In
Norton v. Shelby County, (118 US 425 p. 4416) the Supreme Court ruled that “an
unconstitutional act is not law; it confers no rights; it imposes no duties; affords no
protection; it creates no office; it is in legal contemplation; as inoperative as though it
had never been passed.” According to American Jurisprudence, volume 16 ,section
256, “The general rule is that an unconstitutional statute though having the form and
name of law, is in reality no law but is wholly void, and ineffective for any purpose since
unconstitutionality dates from the time of its enactment and not merely from the date of
the decision so branding it ...No one is bound to obey an unconstitutional law and no
courts are bound to enforce it.” As has been clearly shown, the manner in which the
income tax laws are being misapplied to strip our constitutional rights is in itself most
unconstitutional. Most of the programs the income tax goes to pay for are most
unconstitutional (welfare, social security system, forcign aid, U.N., Federal control of
Education and Labor, etc,). The purpose for the income lax and for estate taxes in
general is to plunder the wealth of America and use that wealth to fund the New World
Order government or the antichrist and to destroy the Constitution. Therefore, for an
Amcrican citizen to continue to pay the income tax is not rendering to Caesar, but
directly to Satan. Selah: Think on these things.
In 1 Samuel 8, the Lord tells Samuel to warn Israel of the consequences of asking for a
King, and says that the King will make the people his slaves by taking 10% of
everything they had. If only this were the limits of our current slavery! We are told in 1
Corinthians 7:23, “You were bought with a price, do not become slaves of men.” But we
have been woefully enslaved by a system that has robbed our families of their rightful
inheritances, and that has deceived us into believing that we must recieve a
government number before being allowd the “priviledge” of working for a living as God
has commanded man to do since the creation of Adam. This should cause great alarm
to every student of Bible prophecy. The so-called “social security” number cannot be
legally mandated under the Constitution, but is clearly turning out to be a precursor to
the coming 18 digit U.N. identification system (three groupings of six numbers each)
which will be tied into an international electronic banking debit system with participation
required of all to be able to buy or sell. It should be noted that the issue of Revelation
13:16-18 relative to the "mark of the beast" is not about doctrimal heresy or false
doctrines about salvation as much as it is about economic enslavement to which
Christians must not submit in any form.
We are told by the Apostle Paul in Romans 13 to render taxes to whom taxes are due.
Governments must collect taxes to function adcquately, and Christians must obey all
tax laws that apply to them and that do not conflict with the Laws of God. However,
illegally collected taxes are not taxes due. Christians have a quite mistaken
understanding of Paul's point in Romans 13:1 which says “Let every soul be subject
unto the high powers. For there is no power but of God; the powers that be are
ordained of God” (KJV). This is not to say that every government offical or despotic
tyrannt that finds himself in power was put there by God. Nor does this mean that every
evil act perpetrated by anny government is ordained by God or in accordance with His
will. The Apostle Paul is defining in this context the limited function of civil government
as ordained by Almighty God; and the authority or power ordained by God and given to
governments is only as defined in scripture and as set by those limits; “There is no
power but of God.” When governments go beyond their biblically defined limits of
protecting the citizenry and punishing evil-doers they have usurped powers not given
them by Almighty God. This is the Apostle's point, and it was the founding basis of our
Christian Constitutional Republic; limited government with limited taxes. Romans 1
does not allow for a socialistic welfare state as we now have which destroys the family
as God designed it, by robbing households of the inheritance a godly man is supposed
to leave to his children's children (Proverbs 13:22). Thereby forcing the elderly to try to
live off “social security”, and by encouraging young women in their teen years to rebel
against their parents, leave home and have as many children out of wedlock as
possible so they can live off government handouts. Limited government is not a
philosophical party line, subject to debate, it is mandated by the Bible and secured in
our wonderful Constitution. As alluded to above, the divinely ordained government in
this nation is not the President, it is not the Congress, and it is not the Supreme Court;
it is the Constitution to which all these three must ultimately answer.
“Therefore, he who resists the authority has opposed the ordinance of God; and they
who have opposed will receive condemnation upon themselves” (Rom. 13:2). All three
branches of our government are currently in rebellion against the Constitution and are
thereby in opposition to God. Contrary to punishing evil-doers and protecting the
innocence which Paul says is what we are supposed to pay taxes for (Rom. 13:6), our
government purposefully frees murderers and rapists while literally murdering innocent
civilians (Waco is not the only example) and while promoting and funding world-wide
abortion, the current White House Administration has continued and accelerated the
treasonous and yet rigorous movement to subvert our Constitution and subjugate it to
the U.N. charter, attempting to absorb America into the socialistic, totalitarian global
empire of the “New World Order.” Jesus warned, in Matthew 24, of lawlessness in the
last days. The lawlessness and rampant crime in our society is actually a symptom of a
greater evil; it has actually been fostered and promoted by the extreme lawlessness
and contempt of the Law at the highest levels of our government, as is evident not only
in their personal lives but also in their public policy. Violent crime and gun violence has
been promoted by a lenient judiciary and perial system and has been publicized and
sensationalized by the controlled media to sway public opinion in favor of
unconstitutional gun control legislation to allow the takeover of America by the
globalist. As Christians, we are not only free to oppose the would-be despots that are
attempting to usurp the ordained authority of this nation, but we are mandated to do so
(Acts 4:19 & 5:29). The same Apostle Paul that said “our citizenship is in heaven” and
“let every soul be subject to the governing authorities” also refused to be subjected to
unjust punishment and on three occasions stood up for his rights as a Roman citizen
(Acts 16:37, 22:25 and 23-11). The same Apostle Peter that said, “Submit yourselves to
every ordinance of man for the Lord's sake” (I Pet. 2:13) also said, “We must obey God
rather that men” (Acts 5:29, 4: 19). It is time to act. This is not a call to arms but it is a
call to take whatever political and legal action is necessary to regain constitutional
government in this nation. We must agressively demand that our Congressmen restore,
protect, and defend our Constitution as they have sworn on oath to do. Christians
proved that we do have a voice in Congress in the early 1994 deluge of opposition to
House Bill HR-6, through which the socialists tried to force their “outcome based”
education curricuilum of global unity on every Christian school and home school in the
land and again in October '94 in the defeat of the “Gag Law” through which they
attempted (in complete disregard of the First Amendment) to restrict our rights to
contact our Congressmen by compelling us to register as lobbyists. While we have a
voice in Congress, we must focus our political attention on restoration of the
Constitution before it is abolished by the forces in our government that have a very real
hatred for its Christian foundations. Any Christian that feels he is too spiritual for
political battles needs to reread Ephesians 6.12, for this battle is not against flesh and
blood, this is a spiritual battle.
We must also force the IRS to obey its own laws and stop their reign of gestapo-like
terror ruling by force of fear rather than by rule of law. Apparently, this can only be
accomplished through resistance; “resist the devil and he will flee from you.” There is a
rising groundswell of patriotic Americans banding together to study the law and regain
“government of the people” and to force the lawless bureaucrats back within the
confines of the Constitution. Within this patriot movement, several paralegal
organizations have arisen to assist individuals desiring to be free frorn IRS tyranny and
the social security system; and in spite of the few losses which have been publicized by
the controlled media, there have been many victories. Recently, a Tennesee man
named Lloyd Long was taken to court by the IRS and charged with willful failure to file a
tax return for tax years 1989 and 90. Using the above legal arguments combined with
other court decisions and the IR Code itself, Mr. Long's attorneys proved to the
Chattanooga jury that Mr. Long as a U S citizen is not liable to pay income tax and is in
no way “required by law” to file tax returns, even though he had earnings over
$49,000.00 for each year in question. Due to this and many other patriot successes the
government is reportedly trying to save face and excuse itself from a very embarrassing
and potentially costly situation by abolishing the current income tax and possibly
replacing it with either a national sales tax or a reduced flat rate (10-17%) income tax
(still unacceptable Constitutionally) with the excuse that the tax laws are too
complicated and “unenforceable.” By the IRS's own admission 1 in 5 “taxpayers” have
stopped filing 1040 forms. Even if the income tax is abolished and revenues raised
legally, the tyranny will not end there. “Eternal vigilance is the price of freedom.” Our
government waits to control every facet of our lives: plans are set and the technology is
now in place to move to a cashless economy (to be justified as a crime and counterfeit
control measure) whereby every person will be required to use a government ID / bank
debit card for every purchase, and whereby the government will be able to monitor our
every financial transaction and instantly seize all our monietary assets. This Card
(Multitechnology Automated Reader Card) is already under experimental use by the
U.S. military and the populace is being prepared and de-sensitized through increasing
use of credit and debit cards. The government plans to control and ration all health
care and plans (by U.N. treaty) to institute an international U.N. income tax and through
the U.N. to seize all guns from American citizens, robbing us of the God given right and
responsibility to defend ourselves and our families. They have now, as of February
1995, legisiated away the 4th Amendment right we have enjoyed for 200 years to be
free from illegal search and seizure, through a bill infamously known as HR 666. Where
will the tyranny end and how much must we Biblically submit to?
“You were bought with a price, do not become slaves of men.” Jesus Christ, the Son of
God, took on human fiesh, lived a sinless life, submitted Himself to an excruciating
sacrificial death, was buried, and was raised bodily from the dead to set us free from
the penalty, the power, and eventually, the present of sin. That being the price of our
ultimate freedom, we cannot allow ourselves to become enslaved by a godless society
that promotes sin; that calls evil good and good evil, that punishes the innocent and
acquits the guilty, that taxes its own citizens into poverty, and that tramples the Laws of
God under foot under the guise of “pluralism” or “tolerance.” Isaiah 10:1-2 says, “Woe
to those who enact evil statutes, and to those who constantly record unjust decisions,
so as to deprive the needy of justice, and rob the poor of My people of their rights..”
Our rights are “unalienable” because they are from God; and He is concerned with the
way our government preserves and protects the rights and liberties given by Him and
secured in our Constitution. Getting into this battle may be costly. The IRS does not
operate accordirg to law, and there are many corrupt judges and ignorant jurors in our
court system. But as the great patriot known as the father of the American Revolution,
Samuel Adams said, “If men, through fear, fraud, or mistake, should in terms renounce
or give up any natural right, the eternal law of reason and the grand end of society
would absolutely vacate such renounciation. The right to freedom being the gift of God,
it is not in the power of man to alienate this gift and voluntarily become a slave.”
Christians are not called to sit idly by and, wait for the rapture while society goes to
hell. Christians have been called to action; first to evangelism, but also to oppose, to
“root out and to pull down” the rampant evil in our society (Jer. 1:10). Daniel 11:32-35
describes how the people of God are to oppose the kingdom of Antichrist: “And by
smooth words he will corrupt those who act wickedly against the covenant, but the
people that do know their God shall be strong, and do exploits.” With light comes,
responsibility; every Christian must prayerfully consider his calling into this battle,
counting the cost. The time has come for God's people to take action; to “stand fast
therefore in the liberty wherewith Christ hath made us free, and be not entangled again
with the yoke of bondage” (Galatians 5: 1). The call of Revelation 18:4 to get out of
Babylon is now going out to the Church, “come out of her, My people, that you be not
partakers of her sins, and that ye receive not of her plagues.” God's people need to
open their ears to hear.
Sam Adams
Brooksville, Florida
352-799-6290
Search This Site
Site Map
International Income Tax

Welcome to Eddie Kahn's Web site!
Documents:
All Americans MUST Read Eddie Kahn, internationally known as an author and lecturer, has researched tax systems for
Articles of Confederation over 20 years. A much sought after speaker, Mr. Kahn travels extensively to conduct seminars
Bill of Rights based on his "how to" book, "No Enforcement Statutes / IRS Regulations Applicable for
Declaration of Independence Individual Income Tax." His seminars and educational materials, distributed by Eddie Kahn &
The Constitution
Associates (EKA), have helped thousands to understand our tax system and take a proactive
Open Letter To IRS & DOJ and successful stance with the IRS. Mr. Kahn is the founder of American Rights Litigators
(ARL), a professional organization that utilizes aggressive CPA's and attorneys dedicated to
Reference Documents protecting and legally representing the rights of American citizens. ARL, founded in 1996, is
23C Assessment located in Mt. Plymouth, Florida. Mr. Kahn has kept international crowds on the edge of their
Implied Notice of Levy seats with his current, useful, and precise clarifications of deceptive tax practices of taxing
63 Million American Non-filers authorities in Australia and New Zealand as well as in the United States.
Bribes at the IRS
CP 515
Don't get a marriage license
Due Process Transcripts Visit our "What's New" Page
IRS Not a Gov't Agency
Liens Removed
Misapplication of IRS Code §...
Order of Authority
Communist Manifesto
Where Money Comes From
1.861-8 Letter
Quashing a 3rd Party Summons This page has been accessed times since September 2000!
Pocket Commission
FDCPA
http://www.eddiekahn.com/index.htm (1 of 3) [1/13/2004 8:12:59 PM]

2039 Summons If you have problems with this site contact webmaster@eddiekahn.com
Levy Notice 668-B
Unlawful Speed
Tax Assessment
Defending a Trust [ HOME | DOCUMENTS | EDDIE'S SEMINARS | FAQ | RELATED LINKS | CONTACT EDDIE | SEARCH | WHAT'S NEW |
Expatriation Act INTERNATIONAL TAX INFORMATION ]
Missing Amendment
Liens Income or Estate Tax
Chief says Tax is Voluntary!
Notification of Birth
CFR26 1.1-1
Fed. Grand Juror Handbook
Privacy Act Request
FOIA Request
Public Servant Questionnaire
W-4 Letter
W-9 Letter
Form 911
Form 433a
IRS Agent Combs Letter
The Determination Letter
112C Letter
1040 for the IRS
Commercial Affidavit
3 Former IRS Agents Expose...
6103 Unlawful Disclosure
ARL Application
Congressmen Speak Truth
Contact House and Senate
Court Decisions
Eighth Commandment
Enforcement Actions
Eddie's Private Page
FAQs
Federal Legislative Jurisdiction
Ghost of Valley Forge

Internet Tips and Tricks
Jokes
Links
Noah in 2002
Quotes
Seminar Schedule
We The People
What is the Church
What Happened to the 56 Men
What's New

Eddie Kahn's Web Site Map
EddieKahn.com
Site Map
Activities:
Contact House & Senate
Open letter to IRS Commissioner Charles Rossotti & Attorney General John Ashcroft
Taking "Enforcement Actions" using Nonenforcement Pocket Commissions
Two City Rally!
Two City Rally!
Must Read Documents:

Documents
Must Read Documents
Sample Documents:
112C Letter
911 - Taxpayers Assistance Order
Congressional Letter
Documents
Sample Documents
The Determination Letter & Instructions
http://www.eddiekahn.com/site_map.htm (1 of 3) [1/13/2004 8:12:59 PM]

Reference Documents:
23C Assessment
5 Reasons Why Christians Should Not Obtain a State Marriage License
63 Million people can't be wrong
Can IRS agent enforce a 2039 Summons for books and records
CFR 1.861-8 Sources of Income
CFR26 1.1-1
Chicago Sun
Communist Manifesto - 10 Planks
Congressional Record 16th Amendment
Congressmen Who Speak the Truth!
Court Decisions
CP515 Letter and Response
CP515 Response letter
Defending a Trust
Documents
Due Process Hearing Transcripts
Expatriation Act of 1868
Fair Dept Collection Pratices Act Review
Florida Statute 316.183 Unlawful Speed
Importance Of Court Decisions
Income Tax is 100% Voluntary
Liens
Liens - Are they for Income or Estate taxes?
Missing Amendment (Original XIII Amendment)
Notification of Birth Registration
Pocket Commission
Quashing a 3rd Party Summons Administrativly
Real Levy Notice
Reference Documents
Tax Assessment
The IRS Not a Government Agency
The law itself does not required individuals to file a Form 1040
This has been happening since 1913

Teachings:
Internet Tips & Tricks
It is the year 2002 and Noah lives in the United States
Jokes
Quotes
Rebublic Under Seige
Syllabus
The Ghost of Valley Forge
We The People...
What Happened to The 56 Signers of The Declaration of Independence?
Miscellaneous:
Contact Eddie Kahn
Search Page
icon below.

Contact the House & Senate

Contact your Politician and make a difference!
This page is here so that you can make your Congressmen and Senators aware of your status as
their Master. We have relinquished that role over the years and we need to regain it. Telling your
Congressmen what you want them to do and how and when you want them to do it is a good start
in regaining that status. Faxing or mailing a letter of wishes to them is something we all need to do
on a regular basis so they get acclimated to doing the will of the Public and not their own.
A perfect example of this is what is happening with President Bush's proclamation that he is going
to war because of the World Trade Center attack on September 11, 2001. The President of the
United States has no constitutional authority to declare war. Only Congress has the authority to
declare war. Even if the President had the authority to declare war, he has not identified a country
that has committed an act of war against America. He talks of "them" but never identifies who
"them" are. We need to tell our President, our Senators and our Congressmen that we do not
want them to declare war on anyone without an act of war being committed against us and
certainly don't want money being appropriated for it.
If we don't tell them NO on this issue we deserve what we will get. What we will get is thousands of
our young men and women being sent to a foreign battlefield to die for no good purpose.
For your convenience, we have put together a list with contact information for all your Senators
and Representatives. This list includes their first and last name, state, seat and political party
affiliation, address, phone and fax number, web site, e-mail address, etc.
http://www.eddiekahn.com/contact_house__senate.htm (1 of 3) [1/13/2004 8:12:59 PM]

Tips on Writing a Member of Congress:

Senators and Representatives pay attention to their mail (NOT E-mail). A member knows your
vote can be won or lost by his/her response. The most effective letter is a personal one, not a
form letter. It should be concise, informed, and polite.
1) Try to stick to one typewritten page. Two pages at the most. Don't write on the back of the
page. If writing longhand, take care to write legibly.
2) In a short first paragraph, state your purpose. Stick with one subject or issue. Support your
position with the rest of the letter.
3) If a bill is the subject, site it by name and number, e.g. House bill: "H.R. ______" or "Senate
bill: S. ______"
4) Be factual and support your position with information about how legislation is likely to affect
you and others. Avoid emotional philosophical arguments.
5) If you believe legislation is wrong and should be opposed, say so, indicate the like adverse
affects and suggest a better approach.
6) Ask for the legislature's views but do not demand support. Remember, Senators and
Representatives respond to a variety of views and even if your position is not supported on one
issue or bill it may be on another.
7) Be sure your name and return address are legible.
8) The suggested address style is:
The Honorable ________________
United States Senate
Washington, D.C. 20510
Dear Senator ______________
The Honorable ________________
United States House of Representatives
Dear Representative ______________
9) You can help shape your approach by knowing about the legislator whom you are writing.
Know the member's committee assignments, interests and backgrounds. If you believe you have
something in common or admire a position or statement of the legislator even on an issue
unrelated to the subject of your letter, then state this in your letter.
The above "Tips on Writing a Member of Congress" were obtained from Liberty Lobby's 107th Congress Handbook.
Contacting Your Senator or Representative: (Microsoft Excel Format / CSV Format). You may
want to download this file to your computer (see Internet tips & tricks page to learn how).
Excel viewer: http://office.microsoft.com/downloads/2000/xlviewer.aspx

United States Capitol Switchboard: (202) 224-3121. They will connect you with the Senator or
Representative of your choice.
Contact the Senate via the web: http://www.senate.gov/contacting/index.cfm
Contact the House via the web: http://www.house.gov/house/MemberWWW.html
Where to get Bills and Committee Reports:

Legislative Resource Center Senate Document Room
B-106 CHOB B-04 SHOB
Washington, DC 20515 Washington, DC 20510
Phone: (202) 226-5200 Phone: (202) 224-7860
Fax: (202) 226-5208 Fax: (202) 228-2815
Track campaign finance data at

www.fecinfo.com
This page was updated September 03, 2002 . Please e-mail me with updates and corrections.
Thank you.

http://www.eddiekahn.com/HnS/ContactingCongress.db.csv
State,Last Name,First Name,Political Affiliation,House/Senate,DC Office,DC Phone #,DC Fax
#,District Office Phone #,Email,WWW Address
AK,Young,Don,R,H,2111 Rayburn HOB,202-225-5765,(202)
225-0425,,don.young@mail.house.gov,http://www.house.gov/donyoung
AKJR,Murkowski,Frank,R,S,322 Hart SOB,202-224-6665,(202)
224-5301,907-271-3735,webmail1@murkowski.senate.gov,http://murkowski.senate.gov/
AKSR,Stevens,Ted,R,S,522 Hart SOB,202-224-3004,(202)
224-2354,907-271-5915,http://stevens.senate.gov/webform.htm,http://stevens.senate.gov/
AL01,Callahan,Sonny,R,H,2372 Rayburn HOB,202-225-4931,(202)
225-0562,334-690-2811,sonny.callahan@mail.house.gov,http://www.house.gov/callahan/
AL02,Everett,Terry,R,H,2312 Rayburn HOB,202-225-8913,(202)
225-8913,334-277-9113,terry.everett@mail.house.gov,http://www.house.gov/everett/
AL03,Riley,Bob,R,H,322 Cannon HOB,202-225-3261,(202)
225-2587,256-236-5655,bob.riley@mail.house.gov,http://www.house.gov/riley/
AL04,Aderholt,Robert,R,H,1007 Longworth HOB,202-225-4876,(202)
225-5587,205-221-2310,robert.aderholt@mail.house.gov,http://www.house.gov/aderholt/
AL05,"Cramer, Jr.",Robert,D,H,2367 Rayburn HOB,202-225-4801,(202)
225-4392,256-551-0190,budmail@mail.house.gov,http://www.house.gov/cramer/
AL06,Bachus,Spencer,R,H,442 Cannon HOB,202-225-4921,(202)
225-2082,205-969-2296,http://www.house.gov/writerep/,http://www.house.gov/bachus/
AL07,Hilliard,Earl,D,H,1314 Longworth HOB,202-225-2665,(202)
226-0772,205-328-2841,http://www.house.gov/writerep/,http://www.house.gov/hilliard/
ALJR,Sessions,Jeff,R,S,493 Russell SOB,202-224-4124,(202)
224-3149,205-731-1500,senator@sessions.senate.gov,http://sessions.senate.gov/
ALSR,Shelby,Richard,R,S,110 Hart SOB,202-224-5744,(202)
224-3416,334-223-7303,senator@shelby.senate.gov,http://shelby.senate.gov/
AR01,Berry,Marion,D,H,1113 Longworth HOB,202-225-4076,(202)
225-5602,870-972-4600,http://www.house.gov/writerep/,http://www.house.gov/berry/
AR02,Snyder,Vic,D,H,1319 Longworth HOB,202-225-5903,(202)
225-5903,501-324-5941,snyder.congress@mail.house.gov,http://www.house.gov/snyder/
AR03,Hutchinson,Asa ****resigned***,R,H,1421 Longworth HOB,202-225-4301,(202)
225-5713,501-442-5258,N/A,N/A
AR04,Ross,Michael N.,D,H,514 Cannon HOB,202-225-3772,(202)
225-1314,501-520-5892,http://www.house.gov/writerep/,http://www.house.gov/ross/
ARJR,Lincoln,Blanche,D,S,825 Hart SOB,202-224-4843,(202)
228-1371,501-375-2993,blanche_lincoln@lincoln.senate.gov,http://lincoln.senate.gov/
ARSR,Hutchinson,Tim,R,S,239 Dirksen SOB,202-224-2353,(202)
224-0776,501-324-6336,Senator.Hutchinson@hutchinson.senate.gov,http://hutchinson.senate.gov/
AS00,Faleomavaega,Eni F. H.,D,H,2422 Rayburn HOB,202-225-8577,(202)
225-8757,684-633-1372,faleomavaega@mail.house.gov,http://www.house.gov/faleomavaega/
AZ01,Flake,Jeff,R,H,512 Cannon HOB,202-225-2635,(202)
226-4386,480-833-0092,http://www.house.gov/writerep/,http://www.house.gov/flake/
AZ02,Pastor,Edward R. Royce,D,H,2465 Rayburn HOB,202-225-4065,(202)
225-1655,602-256-0551,http://www.house.gov/writerep/,http://www.house.gov/pastor/
AZ03,Stump,Bob,R,H,211 Cannon HOB,202-225-4576,(202)
225-6228,602-379-6923,N/A,http://www.house.gov/stump/
AZ04,Shadegg,John,R,H,432 Cannon HOB,202-225-3361,(202)
225-3462,602-248-7779,j.shadegg@mail.house.gov,http://www.house.gov/shadegg/
AZ05,Kolbe,Jim,R,H,2266 Rayburn HOB,202-225-2542,(202)
225-0378,520-881-3588,http://www.house.gov/writerep/,http://www.house.gov/kolbe/
AZ06,Hayworth,J. D.,R,H,2434 Rayburn HOB,202-225-2190,(202)
225-3263,602-926-4151,jdhayworth@mail.house.gov,http://www.house.gov/hayworth/
AZJR,Kyl,Jon,R,S,730 Hart SOB,202-224-4521,(202)
224-2207,602-840-1891,info@kyl.senate.gov,http://kyl.senate.gov/
AZSR,McCain,John,R,S,241 Russell SOB,202-224-2235,(202)
228-2862,602-952-2410,John_McCain@mccain.senate.gov,http://mccain.senate.gov/
CA01,Thompson,Mike Honda,D,H,119 Cannon HOB,202-225-3311,(202)
225-4335,707-962-0933,m.thompson@mail.house.gov,http://www.house.gov/mthompson/
CA02,Herger,Wally,R,H,2268 Rayburn HOB,202-225-3076,(202)
225-3076,530-893-8363,http://www.house.gov/writerep/,http://www.house.gov/herger/
CA03,Ose,Douglas,R,H,215 Cannon HOB,202-225-5716,(202)
226-1298,530-669-3540,doug.ose@mail.house.gov,http://www.house.gov/ose/
CA04,Doolittle,John,R,H,2410 Rayburn HOB,202-225-2511,(202)
225-5444,916-786-5560,doolittle@mail.house.gov,http://www.house.gov/doolittle/
CA05,Matsui,Robert,D,H,2308 Rayburn HOB,202-225-7163,(202)
225-0566,916-498-5600,http://www.house.gov/writerep/,http://www.house.gov/matsui/
CA06,Woolsey,Lynn,D,H,2263 Rayburn HOB,202-225-5161,(202)
225-5163,707-542-7182,lynn.woolsey@mail.house.gov,http://www.house.gov/woolsey/
CA07,Miller,George,D,H,2205 Rayburn HOB,202-225-2095,(202)
225-5609,925-602-1880,George.Miller@mail.house.gov,http://www.house.gov/georgemiller/
CA08,Pelosi,Nancy L.,D,H,2457 Rayburn HOB,202-225-4965,(202)
225-8259,415-556-4862,sf.nancy@mail.house.gov,http://www.house.gov/pelosi/
CA09,Lee,Barbara,D,H,426 Cannon HOB,202-225-2661,(202)
http://www.eddiekahn.com/HnS/ContactingCongress.db.csv (1 of 15) [1/13/2004 8:13:00 PM]

225-9817,510-763-0370,barbara.lee@mail.house.gov,http://www.house.gov/lee/
CA10,Tauscher,Ellen O.,D,H,1122 Longworth HOB,202-225-1880,(202)
225-5914,925-932-8899,http://www.house.gov/writerep/,http://www.house.gov/tauscher/
CA11,Pombo,Richard,R,H,2411 Rayburn HOB,202-225-1947,(202)
226-0861,209-951-3091,rpombo@mail.house.gov,http://www.house.gov/pombo/
CA12,Lantos,Tom,D,H,2217 Rayburn HOB,202-225-3531,(202)
225-7900,650-342-0300,http://www.house.gov/writerep/,http://www.house.gov/lantos/
CA13,Stark,Fortney,D,H,239 Cannon HOB,202-225-5065,(202)
226-3805,510-247-1388,http://www.house.gov/stark/email.html,http://www.house.gov/stark/
CA14,Eshoo,Anna,D,H,205 Cannon HOB,202-225-8104,(202)
225-8890,650-323-2984,http://www-eshoo.house.gov/on-your-mind/index.html,http://www-eshoo.house.gov/
CA15,Honda,Mike,D,H,503 Cannon HOB,202-225-2631,(202)
225-2699,408-244-8085,mike.honda@mail.house.gov,http://www.house.gov/honda/
CA16,Lofgren,Zoe,D,H,227 Cannon HOB,202-225-3072,(202)
225-3336,408-271-8700,zoe@lofgren.house.gov,http://zoelofgren.house.gov/
CA17,Farr,Sam,D,H,1221 Longworth HOB,202-225-2861,(202)
225-6791,831-649-3555,samfarr@mail.house.gov,http://www.house.gov/farr/
CA18,Condit,Gary G.,D,H,2234 Rayburn HOB,202-225-6131,(202)
225-0819,209-383-4455,http://www.house.gov/writerep/,http://www.house.gov/gcondit/
CA19,Radanovich,George,R,H,123 Cannon HOB,202-225-4540,(202)
225-3402,559-248-0800,http://www.house.gov/writerep/,http://www.house.gov/radanovich/
CA20,Dooley,Calvin,D,H,1201 Longworth HOB,202-225-3341,(202)
225-9308,559-585-8171,http://www.house.gov/writerep/,http://www.house.gov/dooley/
CA21,Thomas,William ,R,H,2208 Rayburn HOB,202-225-2915,(202)
225-8798,661-327-3611,http://www.house.gov/writerep/,http://www.house.gov/billthomas/
CA22,Capps,Lois,D,H,1118 Longworth HOB,202-225-3601,(202)
225-5632,805-730-1710,http://www.house.gov/writerep/,http://www.house.gov/capps/
CA23,Gallegly,Elton,R,H,2427 Rayburn HOB,202-225-5811,(202)
225-1100,805-485-2300,http://www.house.gov/writerep/,http://www.house.gov/gallegly/
CA24,Sherman,Brad,D,H,1524 Longworth HOB,202-225-5911,(202)
225-5879,818-999-1990,http://www.house.gov/writerep/,http://www.house.gov/sherman/
CA25,McKeon,Howard P. ``Buck'',R,H,2242 Rayburn HOB,202-225-1956,(202)
226-0683,805-254-2111,tellbuck@mail.house.gov,http://www.house.gov/mckeon/
CA26,Berman,Howard,D,H,2330 Rayburn HOB,202-225-4695,(202)
225-5279,818-891-0543,Howard.Berman@mail.house.gov,http://www.house.gov/berman/
CA27,Schiff,Adam,D,H,437 Cannon HOB,202-225-4176,(202)
225-5828,626-304-2727,http://www.house.gov/writerep/,http://www.house.gov/schiff/
CA28,Dreier,David,R,H,237 Cannon HOB,202-225-2305,(202)
225-7018,626-339-9078,http://www.house.gov/dreier/talkto.htm,http://www.house.gov/dreier/
CA29,Waxman,Henry,D,H,2204 Rayburn HOB,202-225-3976,(202)
225-4099,323-651-1040,http://www.house.gov/writerep/,http://www.house.gov/waxman/
CA30,Becerra,Xavier,D,H,1119 Longworth HOB,202-225-6235,(202)
225-2202,213-483-1425,http://www.house.gov/writerep/,http://www.house.gov/becerra/
CA31,Solis,Hilda,D,H,1641 Longworth HOB,202-225-5464,(202)
225-5467,626-448-1271,http://www.house.gov/writerep/,http://www.house.gov/solis/
CA32,Watson,Diane E.,D,H,2413 Rayburn HOB,202-225-7084,none,N/A,N/A,N/A
CA33,Roybal-Allard,Lucille,D,H,2435 Rayburn HOB,202-225-1766,(202)
226-0350,213-628-9230,http://www.house.gov/writerep/,http://www.house.gov/roybal-allard/
CA34,Napolitano,Grace F.,D,H,1609 Longworth HOB,202-225-5256,(202)
225-0027,323-728-0112,grace@mail.house.gov,http://www.house.gov/napolitano/
CA35,Waters,Maxine,D,H,2344 Rayburn HOB,202-225-2201,(202)
225-7854,323-757-8900,http://www.house.gov/waters/guest.htm,http://www.house.gov/waters/
CA36,Harman,Jane,D,H,229 Cannon HOB,202-225-8220,(202)
226-0684,310-372-1600,jane.harman@mail.house.gov,http://www.house.gov/harman/
CA37,Millender-McDonald,Juanita,D,H,125 Cannon HOB,202-225-7924,(202)
225-7926,310-538-1190,Millender.McDonald@mail.house.gov,http://www.house.gov/millender-mcdonald/
CA38,Horn,Stephen,R,H,2331 Rayburn HOB,202-225-6676,(202)
226-1012,562-425-1336,steve.horn@mail.house.gov,http://www.house.gov/horn/
CA39,Royce,Edward R. Royce,R,H,2202 Rayburn HOB,202-225-4111,(202)
226-0335,714-992-8081,http://www.house.gov/writerep/,http://www.house.gov/royce/
CA40,Lewis,Jerry,R,H,2112 Rayburn HOB,202-225-5861,(202)
225-6498,909-862-6030,http://www.house.gov/writerep/,http://www.house.gov/jerrylewis/
CA41,Miller,Gary G.,R,H,1037 Longworth HOB,202-225-3201,(202)
226-6962,909-444-1761,publicCA41@mail.house.gov,http://www.house.gov/garymiller/
CA42,Baca,Joel Hefley,D,H,1133 Longworth HOB,202-225-6161,(202)
225-8671,909-383-1233,http://www.house.gov/writerep/,http://www.house.gov/baca/
CA43,Calvert,Ken,R,H,2201 Rayburn HOB,202-225-1986,(202)
225-2004,909-784-4300,http://www.house.gov/writerep/,http://www.house.gov/calvert/
CA44,Bono,May W.,R,H,404 Cannon HOB,202-225-5330,(202)
225-2961,760-320-1076,http://www.house.gov/writerep/,http://www.house.gov/bono/
CA45,Rohrabacher,Dana,R,H,2338 Rayburn HOB,202-225-2415,(202)
225-7067,714-847-2433,dana@mail.house.gov,http://www.house.gov/rohrabacher/

CA46,Sanchez,Loretta,D,H,1230 Longworth HOB,202-225-2965,(202)
225-5859,714-621-0102,loretta@mail.house.gov,http://www.house.gov/sanchez/
CA47,Cox,Christopher,R,H,2402 Rayburn HOB,202-225-5611,(202)
225-9177,949-756-2244,christopher.cox@mail.house.gov,http://www.house.gov/chriscox/
CA48,Issa,Darrell,R,H,1725 Longworth HOB,202-225-3906,(202)
225-3303,760-940-4380,congressman.issa@mail.house.gov,http://www.house.gov/issa/
CA49,Davis,Susan A.,D,H,1517 Longworth HOB,202-225-2040,(202)
225-2948,619-291-1430,susan.davis@mail.house.gov,http://www.house.gov/susandavis/
CA50,Filner,Bob,D,H,2463 Rayburn HOB,202-225-8045,(202)
225-9073,619-422-5963,http://www.house.gov/writerep/,http://www.house.gov/filner/
CA51,Cunningham,Randy ``Duke'',R,H,2350 Rayburn HOB,202-225-5452,(202)
225-2558,760-737-8438,http://www.house.gov/cunningham/IMA/get_address3.htm,http://www.house.gov/cunningham/
CA52,Hunter,Duncan,R,H,2265 Rayburn HOB,202-225-5672,(202)
225-0235,619-579-3001,http://www.house.gov/writerep/,http://www.house.gov/hunter/
CAJR,Boxer,Barbara,D,S,112 Hart SOB,202-224-3553,(202)
226-6701,415-403-0100,http://boxer.senate.gov/contact/webform.html,http://boxer.senate.gov/
CASR,Feinstein,Dianne,D,S,331 Hart SOB,202-224-3841,(202)
228-3954,619-231-9712,senator@feinstein.senate.gov,http://feinstein.senate.gov/
CO01,DeGette,Diana,D,H,1530 Longworth HOB,202-225-4431,(202)
225-5657,303-844-4988,degette@mail.house.gov,http://www.house.gov/degette/
CO02,Udall,Mark E.,D,H,115 Cannon HOB,202-225-2161,(202)
226-7840,303-457-4500,http://www.house.gov/writerep/,http://www.house.gov/markudall/
CO03,McInnis,Scott,R,H,320 Cannon HOB,202-225-4761,(202)
226-0622,719-543-8200,N/A,http://www.house.gov/mcinnis/
CO04,Schaffer,Bob ,R,H,212 Cannon HOB,202-225-4676,(202)
225-5870,970-493-9132,rep.schaffer@mail.house.gov,http://www.house.gov/schaffer/
CO05,Hefley,Joel ,R,H,2230 Rayburn HOB,202-225-4422,(202)
225-1942,719-520-0055,N/A,http://www.house.gov/hefley/
CO06,Tancredo,Tom,R,H,418 Cannon HOB,202-225-7882,(202)
226-4623,720-283-9773,tom.tancredo@mail.house.gov,http://www.house.gov/tancredo/
COJR,Allard,Wayne,R,S,525 Dirksen SOB,202-224-5941,(202)
224-6471,719-634-6071,http://allard.senate.gov/contactme/index.cfm,http://allard.senate.gov/
COSR,Campbell,Ben Nighthorse,R,S,380 Russell SOB,202-224-5852,(202)
224-1933,719-636-9092,administrator@campbell.senate.gov,http://campbell.senate.gov/
CT01,Larson,John,D,H,1419 Longworth HOB,202-225-2265,(202)
225-1031,860-278-8888,http://www.house.gov/writerep/,http://www.house.gov/larson/
CT02,Simmons,Robert,R,H,511 Cannon HOB,202-225-2076,(202)
225-4977,860-886-0139,http://www.house.gov/writerep/,http://www.house.gov/simmons/
CT03,DeLauro,Rosa L.,D,H,2262 Rayburn HOB,202-225-3661,(202)
225-4890,203-562-3718,http://www.house.gov/writerep/,http://www.house.gov/delauro/
CT04,Shays,Christopher,R,H,1126 Longworth HOB,202-225-5541,(202)
225-9629,203-579-5870,rep.shays@mail.house.gov,http://www.house.gov/shays/
CT05,Maloney,James H.,D,H,1427 Longworth HOB,202-225-3822,(202)
225-5746,203-573-1418,http://www.house.gov/writerep/,http://www.house.gov/jimmaloney/
CT06,Johnson,Nancy L.,R,H,2113 Rayburn HOB,202-225-4476,(202)
225-4488,860-223-8412,http://www.house.gov/writerep/,http://www.house.gov/nancyjohnson/
CTJR,Lieberman,Joseph,D,S,706 Hart SOB,202-224-4041,(202)
224-9750,860-549-8463,senator_lieberman@lieberman.senate.gov,http://lieberman.senate.gov/
CTSR,Dodd,Christopher,D,S,448 Russell SOB,202-224-2823,(202)
228-1683,860-240-3470,senator@dodd.senate.gov,http://dodd.senate.gov/
DC00,Norton,Eleanor H.,D,H,2136 Rayburn HOB,202-225-8050,(202)
225-3002,202-783-5211,http://www.house.gov/writerep/,http://www.house.gov/norton/
DE00,Castle,Michael N.,R,H,1233 Longworth HOB,202-225-4165,(202)
225-2291,302-428-1902,delaware@mail.house.gov,http://www.house.gov/castle/
DEJR,Carper,Thomas R.,D,S,513 Hart SOB,202-224-2441,(202)
228-2190,302-674-3308,http://carper.senate.gov/Email_Form/email_form.html,http://carper.senate.gov/
DESR,Biden,Joseph,D,S,221 Russell SOB,202-224-5042,(202)
224-0139,302-573-6345,senator@biden.senate.gov,http://biden.senate.gov/
FL01,***Vancant***,***Vacant***,R,H,127 Cannon HOB,202-225-4136,,N/A,N/A,N/A
FL02,Boyd,Allen,D,H,107 Cannon HOB,202-225-5235,(202)
225-5615,850-561-3979,http://www.house.gov/writerep/,http://www.house.gov/boyd/
FL03,Brown,Corrine,D,H,2444 Rayburn HOB,202-225-0123,(202)
225-2256,904-354-1652,N/A,http://www.house.gov/corrinebrown/
FL04,Crenshaw,Ander,R,H,510 Cannon HOB,202-225-2501,(202)
225-2504,904-598-0481,http://www.house.gov/writerep/,http://www.house.gov/crenshaw/
FL05,Thurman,Karen L.,D,H,201 Cannon HOB,202-225-1002,(202)
226-0329,352-344-3044,thurman@mail.house.gov,http://www.house.gov/thurman/
FL06,Stearns,Cliff,R,H,2227 Rayburn HOB,202-225-5744,(202)
225-3973,352-351-8777,http://www.house.gov/writerep/,http://www.house.gov/stearns/
FL07,Mica,John L.,R,H,2445 Rayburn HOB,202-225-4035,(202)
226-0821,407-657-8080,john.mica@mail.house.gov,http://www.house.gov/mica/
FL08,Keller,Ric,R,H,419 Cannon HOB,202-225-2176,(202)
225-0999,407-872-1962,http://www.house.gov/writerep/,http://www.house.gov/keller/Frset.htm

FL09,Bilirakis,Michael,R,H,2269 Rayburn HOB,202-225-5755,(202)
225-4085,727-441-3721,http://www.house.gov/writerep/,http://www.house.gov/bilirakis/
FL10,Young,C. W. Bill,R,H,2407 Rayburn HOB,202-225-5961,(202)
225-9764,727-893-3191,N/A,http://www.house.gov/young/
FL11,Davis,Jim,D,H,424 Cannon HOB,202-225-3376,(202)
225-5652,813-354-9217,http://www.house.gov/writerep/,http://www.house.gov/jimdavis/
FL12,Putnam,Adam,R,H,506 Cannon HOB,202-225-1252,(202)
225-0585,863-534-3530,ask.adam@mail.house.gov,http://www.house.gov/putnam/
FL13,Miller,Dan,R,H,102 Cannon HOB,202-225-5015,(202)
226-0828,941-747-9081,http://www.house.gov/writerep/,http://www.house.gov/danmiller/
FL14,Goss,Porter J.,R,H,108 Cannon HOB,202-225-2536,(202)
225-6820,941-774-8060,porter.goss@mail.house.gov,http://www.house.gov/goss/
FL15,Weldon,Dave,R,H,332 Cannon HOB,202-225-3671,(202)
225-3516,321-632-1776,http://www.house.gov/writerep/,http://www.house.gov/weldon/
FL16,Foley,Mark,R,H,104 Cannon HOB,202-225-5792,(202)
225-3132,561-627-6192,mark.foley@mail.house.gov,http://www.house.gov/foley/
FL17,Meek,Carrie P.,D,H,2433 Rayburn HOB,202-225-4506,(202)
226-0777,305-381-9541,cpm@mail.house.gov,http://www.house.gov/meek/
FL18,Ros-Lehtinen,Illeana,R,H,2160 Rayburn HOB,202-225-3931,(202)
225-5620,305-262-1800,http://www.house.gov/writerep/,http://www.house.gov/ros-lehtinen/
FL19,Wexler,Robert,D,H,213 Cannon HOB,202-225-3001,(202)
225-5974,561-988-6302,http://www.house.gov/writerep/,http://www.house.gov/wexler/
FL20,Deutsch,Peter,D,H,2421 Rayburn HOB,202-225-7931,(202)
225-8456,954-437-3936,http://www.house.gov/writerep/,http://www.house.gov/deutsch/
FL21,Diaz-Balart,Lincoln,R,H,2244 Rayburn HOB,202-225-4211,(202)
225-8576,305-470-8555,http://www.house.gov/writerep/,http://www.house.gov/diaz-balart/
FL22,"Shaw, Jr.",E. Clay,R,H,2408 Rayburn HOB,202-225-3026,(202)
225-8398,954-522-1800,http://www.house.gov/writerep/,http://www.house.gov/shaw/
FL23,Hastings,Alcee L.,D,H,2235 Rayburn HOB,202-225-1313,(202)
226-0690,954-733-2800,alcee.pubhastings@mail.house.gov,http://www.house.gov/alceehastings/
FLJR,Nelson,Bill,D,S,716 Hart SOB,202-224-5274,(202)
228-2183,850-942-8415,senator@billnelson.senate.gov,http://billnelson.senate.gov/
FLSR,Graham,Bob,D,S,524 Hart SOB,202-224-3041,(202)
224-2237,305-536-7293,http://graham.senate.gov/email.html,http://graham.senate.gov/
GA01,Kingston,Jack,R,H,1034 Longworth HOB,202-225-5831,(202)
226-2269,912-352-0101,jack.kingston@mail.house.gov,http://www.house.gov/kingston/
GA02,"Bishop, Jr.",Sanford D.,D,H,2429 Rayburn HOB,202-225-3631,(202)
225-2203,229-439-8067,bishop.email@mail.house.gov,http://www.house.gov/bishop/
GA03,Collins,Mac,R,H,1131 Longworth HOB,202-225-5901,(202)
225-2515,770-603-3395,mac.collins@mail.house.gov,http://www.house.gov/maccollins/
GA04,McKinney,Cynthia A.,D,H,124 Cannon HOB,202-225-1605,(202)
226-0691,404-377-6900,cymck@mail.house.gov,http://www.house.gov/mckinney/
GA05,Lewis,John,D,H,343 Cannon HOB,202-225-3801,(202)
225-0351,404-659-0116,john.lewis@mail.house.gov,http://www.house.gov/johnlewis/
GA06,Isakson,John,R,H,132 Cannon HOB,202-225-4501,(202)
225-4656,404-252-5239,ga06@mail.house.gov,http://isakson.house.gov/
GA07,Barr,Bob,R,H,1207 Longworth HOB,202-225-2931,(202)
225-2944,770-429-1776,barr.ga@mail.house.gov,http://www.house.gov/barr/
GA08,Chambliss,Saxby,R,H,1019 Longworth HOB,202-225-6531,(202)
225-3013,478-752-0800,rep.saxby.chambliss@mail.house.gov,http://www.house.gov/chambliss/
GA09,Deal,Nathan,R,H,2437 Rayburn HOB,202-225-5211,(202)
225-8272,770-535-2592,http://www.house.gov/writerep/,http://www.house.gov/deal/
GA10,Norwood,Charlie,R,H,1707 Longworth HOB,202-225-4101,(202)
225-0279,706-733-7066,http://www.house.gov/writerep/,http://www.house.gov/norwood/
GA11,Linder,John,R,H,1727 Longworth HOB,202-225-4272,(202)
225-4696,912-642-4118,john.linder@mail.house.gov,http://www.house.gov/linder/
GAJR,Miller,Zell,D,S,257 Dirksen SOB,202-224-3643,(202)
228-2090,404-347-2202,webform@miller.senate.gov,http://miller.senate.gov/
GASR,Cleland,Joseph (Max),D,S,461 Dirksen SOB,202-224-3521,(202)
224-0072,404-331-4811,http://cleland.senate.gov/webform.html,http://cleland.senate.gov/
GU00,Underwood,Robert A.,D,H,2428 Rayburn HOB,202-225-1188,(202)
226-0341,671-477-4272,guamtodc@mail.house.gov,http://www.house.gov/underwood/
HI01,Abercrombie,Neil,D,H,1502 Longworth HOB,202-225-2726,(202)
225-4580,808-541-2570,neil.abercrombie@mail.house.gov,http://www.house.gov/abercrombie/
HI02,Mink,Patsy,D,H,2210 Rayburn HOB,202-225-4906,(202)
225-4987,808-541-1986,http://www.house.gov/writerep/,http://www.house.gov/mink/
HIJR,Akaka,Daniel,D,S,141 Hart SOB,202-224-6361,(202)
224-2126,808-522-8970,senator@akaka.senate.gov,http://akaka.senate.gov/
HISR,Inouye,Daniel,D,S,722 Hart SOB,202-224-3934,(202)
224-6747,808-541-2542,senator@inouye.senate.gov,http://inouye.senate.gov/
IA01,Leach,James A.,R,H,2186 Rayburn HOB,202-225-6576,(202)
226-1278,319-363-4773,talk2jim@mail.house.gov,http://www.house.gov/leach/

IA02,Nussle,Jim,R,H,303 Cannon HOB,202-225-2911,(202)
225-9129,319-927-5141,nussleia@mail.house.gov,http://nussle.house.gov/
IA03,Boswell,Leonard L.,D,H,1039 Longworth HOB,202-225-3806,(202)
225-5608,641-342-4801,rep.boswell.ia03@mail.house.gov,http://www.house.gov/boswell/
IA04,Ganske,Greg,R,H,1108 Longworth HOB,202-225-4426,(202)
225-3193,515-284-4634,rep.ganske@mail.house.gov,http://www.house.gov/ganske/
IA05,Latham,Tom,R,H,440 Cannon HOB,202-225-5476,(202)
225-3301,712-277-2114,latham.ia05@mail.house.gov,http://www.house.gov/latham/
IAJR,Harkin,Tom,D,S,731 Hart SOB,202-224-3254,(202)
224-9369,515-284-4574,tom_harkin@harkin.senate.gov,http://harkin.senate.gov/
IASR,Grassley,Charles,R,S,135 Hart SOB,202-224-3744,(202)
224-6020,319-363-6832,chuck_grassley@grassley.senate.gov,http://grassley.senate.gov/
ID01,Otter,"C. L. ""Butch""",R,H,1711 Longworth HOB,202-225-6611,(202)
225-3029,208-336-9831,butch.otter@mail.house.gov,http://www.house.gov/otter/
ID02,Simpson,Mike,R,H,1440 Longworth HOB,202-225-5531,(202)
225-8216,208-523-6701,mike.simpson@mail.house.gov,http://www.house.gov/simpson/
IDJR,Crapo,Mike,R,S,111 Russell SOB,202-224-6142,(202)
228-1375,208-455-0360,webmail@crapo-iq.senate.gov,http://crapo.senate.gov/
IDSR,Craig,Larry,R,S,520 Hart SOB,202-224-2752,(202)
228-1067,208-342-7985,http://craig.senate.gov/webform.html,http://craig.senate.gov/
IL01,Rush,Bobby,D,H,2416 Rayburn HOB,202-225-4372,(202)
226-0333,773-224-6500,bobby.rush@mail.house.gov,http://www.house.gov/rush/
IL02,"Jackson, Jr.",Jesse L.,D,H,313 Cannon HOB,202-225-0773,(202)
225-0899,773-568-7900,webmaster@jessejacksonjr.org,http://www.jessejacksonjr.org/
IL03,Lipinski,William J.,D,H,2470 Rayburn HOB,202-225-5701,(202)
225-1012,312-886-0481,il03wyr@housemail.house.gov,http://www.house.gov/lipinski/
IL04,Gutierrez,Luis V.,D,H,2452 Rayburn HOB,202-225-8203,(202)
225-7810,773-509-0999,http://www.house.gov/gutierrez/contact.html,http://www.house.gov/gutierrez/
IL05,Blagojevich,Rod R.,D,H,331 Cannon HOB,202-225-4061,(202)
225-5603,773-868-3240,Rod.Blagojevich@mail.house.gov,http://www.house.gov/blagojevich/
IL06,Hyde,Henry J.,R,H,2110 Rayburn HOB,202-225-4561,(202)
225-1166,630-832-5950,http://www.house.gov/writerep/,http://www.house.gov/hyde/
IL07,Davis,Danny K.,D,H,1222 Longworth HOB,202-225-5006,(202)
225-8396,773-533-7520,http://www.house.gov/writerep/,http://www.house.gov/davis/
IL08,Crane,Philip M.,R,H,233 Cannon HOB,202-225-3711,(202)
225-7830,847-265-9000,N/A,http://www.house.gov/crane/
IL09,Schakowsky,Janice D.,D,H,515 Cannon HOB,202-225-2111,(202)
226-6890,847-328-3399,jan.schakowsky@mail.house.gov,http://www.house.gov/schakowsky/
IL10,Kirk,Mark S.,R,H,1531 Longworth HOB,202-225-4835,(202)
225-0837,847-940-0202,rep.kirk@mail.house.gov,http://www.house.gov/kirk/
IL11,Weller,Jerry,R,H,1210 Longworth HOB,202-225-3635,(202)
225-3521,815-740-2028,http://www.house.gov/writerep/,http://www.house.gov/weller/
IL12,Costello,Jerry F.,D,H,2454 Rayburn HOB,202-225-5661,(202)
225-0285,618-451-7065,http://www.house.gov/writerep/,http://www.house.gov/costello/
IL13,Biggert,Judy,R,H,1213 Longworth HOB,202-225-3515,(202)
225-9420,630-655-2052,http://www.house.gov/writerep/,http://www.house.gov/biggert/
IL14,Hastert,J. Dennis,R,H,2269 Rayburn HOB,202-225-2976,(202)
225-0697,630-406-1114,dhastert@mail.house.gov,http://www.house.gov/hastert/
IL15,Johnson,Timothy V.,R,H,1541 Longworth HOB,202-225-2371,(202)
226-0791,217-403-4690,N/A,http://www.house.gov/timjohnson/
IL16,Manzullo,Donald A.,R,H,409 Cannon HOB,202-225-5676,(202)
225-5284,815-394-1231,http://www.house.gov/writerep/,http://www.house.gov/manzullo/
IL17,Evans,Lane,D,H,2211 Rayburn HOB,202-225-5905,(202)
225-5396,309-793-5760,lane.evans@mail.house.gov,http://www.house.gov/evans/
IL18,LaHood,Ray,R,H,1424 Longworth HOB,202-225-6201,(202)
225-9249,217-793-0808,http://www.house.gov/writerep/,http://www.house.gov/lahood/
IL19,Phelps,David,D,H,1523 Longworth HOB,202-225-5201,(202)
225-1541,618-273-8203,http://www.house.gov/writerep/,http://www.house.gov/phelps/
IL20,Shimkus,John,R,H,513 Cannon HOB,202-225-5271,(202)
225-5880,217-492-5090,http://www.house.gov/writerep/,http://www.house.gov/shimkus/
ILJR,Fitzgerald,Peter,R,S,555 Dirksen SOB,202-224-2854,(202)
228-1372,217-492-5089,senator_fitzgerald@fitzgerald.senate.gov,http://fitzgerald.senate.gov/
ILSR,Durbin,Richard,D,S,332 Dirksen SOB,202-224-2152,(202)
228-0400,217-492-4062,dick@durbin.senate.gov,http://durbin.senate.gov/
IN01,Visclosky,Peter J.,D,H,2313 Rayburn HOB,202-225-2461,(202)
225-2493,219-884-1177,http://www.house.gov/writerep/,http://www.house.gov/visclosky/
IN02,Pence,Mike,R,H,1605 Longworth HOB,202-225-3021,(202)
225-3382,765-640-2919,mike.pence@mail.house.gov,http://mikepence.house.gov/
IN03,Roemer,Tim,D,H,2352 Rayburn HOB,202-225-3915,(202)
225-6798,219-288-3301,tim.roemer@mail.house.gov,http://www.house.gov/roemer/
IN04,Souder,Mark E.,R,H,1227 Longworth HOB,202-225-4436,(202)
225-3479,219-424-3041,souder@mail.house.gov,http://www.house.gov/souder/
IN05,Buyer,Stephen E.,R,H,2443 Rayburn HOB,202-225-5037,(202)

225-2267,765-454-7551,http://www.house.gov/writerep/,http://www.house.gov/buyer/
IN06,Burton,Dan,R,H,2185 Rayburn HOB,202-225-2276,(202)
225-0016,317-848-0201,N/A,http://www.house.gov/burton/
IN07,Kerns,Brian D.,R,H,226 Cannon HOB,202-225-5805,(202)
225-5794,812-238-1619,N/A,http://www.house.gov/kerns/
IN08,Hostettler,John H.,R,H,1507 Longworth HOB,202-225-4636,(202)
225-3284,812-465-6484,John.Hostettler@mail.house.gov,http://www.house.gov/hostettler/
IN09,Hill,Baron,D,H,1208 Longworth HOB,202-225-5315,(202)
226-6866,812-288-3999,http://www.house.gov/writerep/,http://www.house.gov/baronhill/
IN10,Carson,Julia,D,H,1339 Longworth HOB,202-225-4011,(202)
225-5633,317-283-6516,rep.carson@mail.house.gov,http://www.house.gov/carson/
INJR,Bayh,B. Evan ,D,S,463 Russell SOB,202-224-5623,(202)
228-1377,317-554-0750,senator@bayh.senate.gov,http://bayh.senate.gov/
INSR,Lugar,Richard,R,S,306 Hart SOB,202-224-4814,(202)
228-0360,317-226-5555,senator_lugar@lugar.senate.gov,http://lugar.senate.gov/
KS01,Moran,Jerry,R,H,1519 Longworth HOB,202-225-2715,(202)
225-5124,785-628-6401,jerry.moran@mail.house.gov,http://www.house.gov/moranks01/
KS02,Ryun,Jim,R,H,330 Cannon HOB,202-225-6601,(202)
225-7986,785-232-4512,http://www.house.gov/writerep/,http://www.house.gov/ryun/
KS03,Moore,Dennis,D,H,431 Cannon HOB,(202) 225-2807,(202)
225-2807,913-383-2013,http://www.house.gov/writerep/,http://www.house.gov/moore/
KS04,Tiahrt,Todd,R,H,401 Cannon HOB,202-225-6216,(202)
225-3489,316-262-8992,tiahrt@mail.house.gov,http://www.house.gov/tiahrt/
KSJR,Roberts,Pat,R,S,302 Hart SOB,202-224-4774,(202)
224-3514,785-295-2745,pat_roberts@roberts.senate.gov,http://roberts.senate.gov/
KSSR,Brownback,Sam,R,S,303 Hart SOB,202-224-6521,(202)
228-1265,913-492-6378,webmail@brownback.senate.gov,http://brownback.senate.gov/
KY01,Whitfield,Ed,R,H,236 Cannon HOB,202-225-3115,(202)
225-3547,270-885-8079,ed.whitfield@mail.house.gov,http://www.house.gov/whitfield/
KY02,Lewis,Ron,R,H,2418 Rayburn HOB,202-225-3501,(202)
226-2019,270-842-9896,ron.lewis@mail.house.gov,http://www.house.gov/ronlewis/
KY03,Northup,Anne M.,R,H,1004 Longworth HOB,202-225-5401,(202)
225-5776,502-582-5129,rep.northup@mail.house.gov,http://www.house.gov/northup/
KY04,Lucas,Kenneth,D,H,1237 Longworth HOB,(202) 225-3465,(202)
225-0003,859-426-0080,write.kenlucas@mail.house.gov,http://www.house.gov/kenlucas/
KY05,Rogers,Harold,R,H,2406 Rayburn HOB,202-225-4601,(202)
225-0940,606-679-8346,http://www.house.gov/writerep/,http://www.house.gov/rogers/
KY06,Fletcher,Ernie,R,H,1117 Longworth HOB,(202) 225-2122,(202)
225-2122,859-219-1366,http://www.house.gov/writerep/,http://www.house.gov/fletcher/
KYJR,Bunning,Jim,R,S,316 Hart SOB,202-224-4343,(202)
228-1373,859-341-2602,jim_bunning@bunning.senate.gov,http://bunning.senate.gov/
KYSR,McConnell,Mitch,R,S,361A Russell SOB,202-224-2541,(202)
224-2499,502-582-6304,senator@mcconnell.senate.gov,http://mcconnell.senate.gov/
LA01,Vitter,David,R,H,414 Cannon HOB,202-225-3015,(202)
225-0739,504-589-2752,http://www.house.gov/writerep/,http://www.house.gov/vitter/
LA02,Jefferson,William J.,D,H,240 Cannon HOB,202-225-6636,(202)
225-1988,504-589-2274,http://www.house.gov/writerep/,http://www.house.gov/jefferson/
LA03,Tauzin,"W. J. ""Billy""",R,H,2183 Rayburn HOB,202-225-4031,(202)
225-0563,985-876-3033,http://www.house.gov/writerep/,http://www.house.gov/tauzin/
LA04,McCrery,Jim,R,H,2104 Rayburn HOB,202-225-2777,(202)
225-8039,318-798-2254,jim.mccrery@mail.house.gov,http://www.house.gov/mccrery/
LA05,Cooksey,John,R,H,113 Cannon HOB,202-225-8490,(202)
225-5639,318-448-1777,congressman.cooksey@mail.house.gov,http://www.house.gov/cooksey/
LA06,Baker,Richard H.,R,H,341 Cannon HOB,202-225-3901,(202)
225-7313,225-929-7711,http://www.house.gov/writerep/,http://www.house.gov/baker/
LA07,John,Christopher,D,H,1504 Longworth HOB,202-225-2031,(202)
225-5724,337-235-6322,christopher.john@mail.house.gov,http://www.house.gov/john/
LAJR,Landrieu,Mary,D,S,724 Hart SOB,202-224-5824,(202)
224-9735,504-589-2427,http://landrieu.senate.gov/newsite/webform.html,http://landrieu.senate.gov/
LASR,Breaux,John,D,S,503 Hart SOB,202-224-4623,(202)
228-2577,504-589-2531,senator@breaux.senate.gov,http://breaux.senate.gov/
MA01,Olver,John W.,D,H,1027 Longworth HOB,202-225-5335,(202)
226-1224,413-532-7010,http://www.house.gov/writerep/,http://www.house.gov/olver/
MA02,Neal,Richard N.,D,H,2133 Rayburn HOB,202-225-5601,(202)
225-8112,413-785-0325,http://www.house.gov/writerep/,http://www.house.gov/neal/
MA03,McGovern,James P.,D,H,430 Cannon HOB,202-225-6101,(202)
225-2217,508-831-7356,http://www.house.gov/writerep/,http://www.house.gov/mcgovern/
MA04,Frank,Barney,D,H,2252 Rayburn HOB,202-225-5931,(202)
225-0182,508-999-6462,N/A,http://www.house.gov/frank/
MA05,Meehan,Martin T.,D,H,2447 Rayburn HOB,202-225-3411,(202)
226-0771,978-459-0101,martin.meehan@mail.house.gov,http://www.house.gov/meehan/
MA06,Tierney,John F.,D,H,120 Cannon HOB,202-225-8020,(202)

225-5915,978-531-1669,http://www.house.gov/writerep/,http://www.house.gov/tierney/
MA07,Markey,Edward J.,D,H,2108 Rayburn HOB,202-225-2836,Not
Public,781-396-2900,http://www.house.gov/writerep/,http://www.house.gov/markey/
MA08,Capuano,Michael,s,H,1232 Longworth HOB,202-225-5111,(202)
225-9322,617-621-6208,http://www.house.gov/writerep/,http://www.house.gov/capuano/
MA09,***Vacant***,***Vacant***,D,H,235 Cannon HOB,202-225-8273,(202)
225-3984,617-428-2000,N/A,N/A
MA10,Delahunt,William D.,D,H,1317 Longworth HOB,202-225-3111,(202)
225-5658,617-770-3700,william.delahunt@mail.house.gov,http://www.house.gov/delahunt/
MAJR,Kerry,John Forbes,D,S,304 Russell SOB,202-224-2742,(202)
224-8525,617-565-8519,john_kerry@kerry.senate.gov,http://kerry.senate.gov/
MASR,Kennedy,Edward M.,D,S,315 Russell SOB,202-224-4543,(202)
224-2417,617-565-3170,senator@kennedy.senate.gov,http://kennedy.senate.gov/
MD01,Gilchrest,Wayne T.,R,H,2245 Rayburn HOB,202-225-5311,(202)
225-0254,410-778-9407,http://www.house.gov/writerep/,http://www.house.gov/gilchrest/
MD02,"Ehrlich, Jr.",Robert L.,R,H,315 Cannon HOB,202-225-3061,(202)
225-3094,410-337-7222,ehrlich@mail.house.gov,http://www.house.gov/ehrlich/index.htm
MD03,Cardin,Benjamin L.,D,H,2267 Rayburn HOB,202-225-4016,(202)
225-9219,410-433-8886,rep.cardin@mail.house.gov,http://www.house.gov/cardin/
MD04,Wynn,Albert Russell,D,H,434 Cannon HOB,202-225-8699,(202)
225-8714,301-773-4094,http://www.house.gov/writerep/,http://www.house.gov/wynn/
MD05,Hoyer,Steny H.,D,H,1705 Longworth HOB,202-225-4131,(202)
225-4300,301-843-1577,http://www.house.gov/writerep/,http://www.house.gov/hoyer/
MD06,Bartlett,Roscoe,R,H,2412 Rayburn HOB,202-225-2721,(202)
225-2193,301-694-3030,http://www.house.gov/writerep/,http://www.house.gov/bartlett/
MD07,Cummings,Elijah E.,D,H,1632 Longworth HOB,202-225-4741,(202)
225-3178,410-367-1900,Rep.Cummings@mail.house.gov,http://www.house.gov/cummings/
MD08,Morella,Constance A.,R,H,2228 Rayburn HOB,202-225-5341,(202)
225-1389,301-424-3501,Rep.Morella@mail.house.gov,http://www.house.gov/morella/
MDJR,Mikulski,Barbara,D,S,709 Hart SOB,202-224-4654,(202)
224-8858,410-263-1805,senator@mikulski.senate.gov,http://mikulski.senate.gov/
MDSR,Sarbanes,Paul,D,S,309 Hart SOB,202-224-4524,(202)
224-1651,410-962-4436,http://sarbanes.senate.gov/pages/email.html,http://sarbanes.senate.gov/
ME01,Allen,Thomas H.,D,H,1717 Longworth HOB,202-225-6116,(202)
225-5590,207-774-5019,rep.tomallen@mail.house.gov,http://tomallen.house.gov/
ME02,Baldacci,John E.,D,H,1740 Longworth HOB,202-225-6306,(202)
225-2943,207-942-6935,baldacci@me02.house.gov,http://www.house.gov/baldacci/
MEJR,Collins,Susan M.,R,S,172 Russell SOB,202-224-2523,(202)
224-2693,207-945-0417,senator@collins.senate.gov,http://collins.senate.gov/
MESR,Snowe,Olympia,R,S,154 Russell SOB,202-224-5344,(202)
224-1946,207-780-3575,Olympia@snowe.senate.gov,http://snowe.senate.gov/
MI01,Stupak,Bart,D,H,2348 Rayburn HOB,202-225-4735,(202)
225-4744,231-929-4711,stupak@mail.house.gov,http://www.house.gov/stupak/
MI02,Hoekstra,Peter,R,H,1124 Longworth HOB,202-225-4401,(202)
226-0779,616-395-0030,tellhoek@mail.house.gov,http://www.house.gov/hoekstra/
MI03,Ehlers,Vernon,R,H,1714 Longworth HOB,202-225-3831,(202)
225-5144,616-451-8383,rep.ehlers@mail.house.gov,http://www.house.gov/ehlers/
MI04,Camp,Dave,R,H,137 Cannon HOB,202-225-3561,(202)
225-9679,517-631-2552,http://www.house.gov/writerep/,http://www.house.gov/camp/
MI05,Barcia,James,D,H,2419 Rayburn HOB,202-225-8171,(202)
225-2168,517-667-0003,jim.barcia-pub@mail.house.gov,http://www.house.gov/barcia/
MI06,Upton,Fred,R,H,2333 Rayburn HOB,202-225-3761,(202)
225-4986,616-982-1986,http://www.house.gov/writerep/,http://www.house.gov/upton/
MI07,Smith,Nick,R,H,2305 Rayburn HOB,202-225-6276,(202)
225-6281,517-783-4486,rep.smith@mail.house.gov,http://www.house.gov/nicksmith/
MI08,Rogers,Michael,R,H,509 Cannon HOB,202-225-4872,(202)
225-5820,517-702-8000,http://www.house.gov/writerep/,http://www.house.gov/mikerogers/
MI09,Kildee,Dale E.,D,H,2107 Rayburn HOB,202-225-3611,(202)
225-6393,810-239-1437,dkildee@mail.house.gov,http://www.house.gov/kildee/
MI10,Bonior,David E.,D,H,2207 Rayburn HOB,202-225-2106,(202)
226-1169,810-987-8889,david.bonior@mail.house.gov,http://davidbonior.house.gov/
MI11,Knollenberg,Joe,R,H,2349 Rayburn HOB,202-225-5802,(202)
226-2356,248-851-1366,rep.knollenberg@mail.house.gov,http://www.house.gov/knollenberg/
MI12,Levin,Sander,D,H,2300 Rayburn HOB,202-225-4961,(202)
226-1033,810-268-4444,slevin@mail.house.gov,http://www.house.gov/levin/
MI13,Rivers,Lynn N.,D,H,1724 Longworth HOB,202-225-6261,(202)
225-3404,734-741-4210,lynn.rivers@mail.house.gov,http://www.house.gov/rivers/
MI14,"Conyers, Jr.",John C.,D,H,2426 Rayburn HOB,202-225-5126,(202)
225-0072,313-961-5670,john.conyers@mail.house.gov,http://www.house.gov/conyers/
MI15,Kilpatrick,Carolyn C.,D,H,1610 Longworth HOB,202-225-2261,(202)
225-6645,313-965-9004,http://www.house.gov/writerep/,http://www.house.gov/kilpatrick/
MI16,Dingell,John D.,D,H,2328 Rayburn HOB,202-225-4071,(202)
226-0371,313-846-1276,public.dingell@mail.house.gov,http://www.house.gov/dingell/

MIJR,Stabenow,Debbie A.,D,S,702 Hart SOB,202-224-4822,(202)
228-0325,517-203-1760,senator@stabenow.senate.gov,http://stabenow.senate.gov/
MISR,Levin,Carl,D,S,269 Russell SOB,202-224-6221,(202)
224-1388,313-226-6020,senator@levin.senate.gov,http://levin.senate.gov/
MN01,Gutknecht,Gil,R,H,425 Cannon HOB,202-225-2472,(202)
225-3246,507-252-9841,gil.gutknecht@mail.house.gov,http://www.house.gov/gutknecht/
MN02,Kennedy,Mark,R,H,1415 Longworth HOB,202-225-2331,(202)
225-6475,763-684-1600,mark.kennedy@mail.house.gov,http://markkennedy.house.gov/
MN03,Ramstad,Jim,R,H,103 Cannon HOB,202-225-2871,(202)
225-6351,612-881-4600,mn03@mail.house.gov,http://www.house.gov/ramstad/
MN04,McCollum,Betty,D,H,1029 Longworth HOB,202-225-6631,(202)
225-1968,651-224-9191,betty.mccollum@mail.house.gov,http://www.house.gov/mccollum/
MN05,Sabo,Martin O.,D,H,2336 Rayburn HOB,202-225-4755,(202)
225-4866,612-348-1649,martin.sabo@mail.house.gov,http://www.house.gov/sabo/
MN06,Luther,Bill,D,H,117 Cannon HOB,202-225-2271,(202)
225-3368,651-730-4949,bill.luther@mail.house.gov,http://www.house.gov/luther/
MN07,Peterson,Collin C.,D,H,2159 Rayburn HOB,202-225-2165,(202)
225-1593,218-847-5056,http://www.house.gov/writerep/,http://www.house.gov/collinpeterson/
MN08,Oberstar,James L.,D,H,2365 Rayburn HOB,202-225-6211,(202)
225-0699,218-727-7474,http://www.house.gov/writerep/,http://www.house.gov/oberstar/
MNJR,Dayton,Mark,D,S,346 Russell SOB,202-224-3244,(202)
228-2186,612-727-5220,N/A,http://dayton.senate.gov/
MNSR,Wellstone,Paul D.,D,S,136 Hart SOB,202-224-5641,(202)
224-8438,651-645-0323,http://wellstone.senate.gov/webform.html,http://wellstone.senate.gov/
MO01,Clay,William,D,H,415 Cannon HOB,202-225-2406,(202)
225-1725,314-367-1970,mo01wyr@housemail.house.gov,http://www.house.gov/clay/
MO02,Akin,Todd,R,H,501 Cannon HOB,202-225-2561,(202)
225-2563,314-878-0513,rep.akin@mail.house.gov,http://www.house.gov/akin/
MO03,Gephardt,Richard A.,D,H,1236 Longworth HOB,202-225-2671,(202)
225-7452,314-894-3400,http://www.house.gov/writerep/,http://www.house.gov/gephardt/
MO04,Skelton,Ike,D,H,2206 Rayburn HOB,202-225-2876,(202)
225-2695,816-228-4242,ike.skelton@mail.house.gov,http://www.house.gov/skelton/
MO05,McCarthy,Karen,D,H,1330 Longworth HOB,202-225-4535,(202)
225-4403,816-842-4545,http://www.house.gov/writerep/,http://www.house.gov/karenmccarthy/
MO06,Graves,Samuel,R,H,1407 Longworth HOB,202-225-7041,(202)
225-8221,816-792-3976,sam.graves@mail.house.gov,http://www.house.gov/graves/
MO07,Blunt,Roy,R,H,217 Cannon HOB,202-225-6536,(202)
225-5604,417-889-1800,blunt@mail.house.gov,http://www.house.gov/blunt/
MO08,Emerson,Jo Ann,R,H,326 Cannon HOB,202-225-4404,(202)
226-0326,573-335-0101,http://www.house.gov/writerep/,http://www.house.gov/emerson/
MO09,Hulshof,Kenny C.,R,H,412 Cannon HOB,202-225-2956,(202)
225-5712,573-449-5111,rep.hulshof@mail.house.gov,http://www.house.gov/hulshof/
MOJR,Carnahan,Jean,D,S,517 Hart SOB,202-224-6154,(202)
228-0043,314-436-3416,senator_carnahan@carnahan.senate.gov,http://carnahan.senate.gov/
MOSR,Bond,"Christopher ""Kit""",R,S,274 Russell SOB,202-224-5721,(202)
224-8149,573-634-2488,kit_bond@bond.senate.gov,http://bond.senate.gov/
MS01,Wicker,Roger F.,R,H,206 Cannon HOB,202-225-4306,(202)
225-3549,662-844-5437,roger.wicker@mail.house.gov,http://www.house.gov/wicker/
MS02,Thompson,Bennie G.,D,H,2432 Rayburn HOB,202-225-5876,(202)
225-5898,601-866-9003,thompsonms2nd@mail.house.gov,http://www.house.gov/thompson/
MS03,Pickering,Charles W.,R,H,427 Cannon HOB,202-225-5031,(202)
225-5797,601-693-6681,http://www.house.gov/writerep/,http://www.house.gov/pickering/
MS04,Shows,Ronnie,D,H,1408 Longworth HOB,202-225-5865,(202)
225-5886,601-352-1355,ronnie.shows@mail.house.gov,http://www.house.gov/shows/
MS05,Taylor,Gene,D,H,2311 Rayburn HOB,202-225-5772,(202)
225-7074,228-864-7670,http://www.house.gov/writerep/,http://www.house.gov/genetaylor/
MSJR,Lott,Trent,R,S,487 Russell SOB,202-224-6253,(202)
224-2262,601-965-4644,senatorlott@lott.senate.gov,http://lott.senate.gov/
MSSR,Cochran,?,R,S,326 Russell SOB,202-224-5054,(202)
224-9450,601-965-4459,senator@cochran.senate.gov,http://cochran.senate.gov/
MT00,Rehberg,Dennis,R,H,516 Cannon HOB,202-225-3211,(202)
225-5687,406-443-7878,http://www.house.gov/writerep/,http://www.house.gov/rehberg/
MTJR,Burns,Conrad,R,S,187 Dirksen SOB,202-224-2644,(202)
224-8954,406-449-5401,conrad_burns@burns.senate.gov,http://burns.senate.gov/
MTSR,Baucus,Max,D,S,511 Hart SOB,202-224-2651,(202)
228-3687,406-329-3123,max@baucus.senate.gov,http://baucus.senate.gov/
NC01,Clayton,Eva M.,D,H,2440 Rayburn HOB,202-225-3101,(202)
225-3354,252-257-4800,nc01ima.pub@mail.house.gov,http://www.house.gov/clayton/
NC02,Etheridge,Bob,D,H,1533 Longworth HOB,202-225-4531,(202)
225-5662,919-829-9122,http://www.house.gov/writerep/,http://www.house.gov/etheridge/
NC03,"Jones, Jr.",Walter B.,R,H,422 Cannon HOB,202-225-3415,(202)
225-3286,252-931-1003,congjones@mail.house.gov,http://www.house.gov/jones/

NC04,Price,David E.,D,H,2162 Rayburn HOB,202-225-1784,(202)
225-2014,919-789-8771,david.price@mail.house.gov,http://www.house.gov/price/
NC05,Burr,Richard,R,H,1526 Longworth HOB,202-225-2071,(202)
225-2995,336-631-5125,Richard.BurrNC05@mail.house.gov,http://www.house.gov/burr/
NC06,Coble,Howard,R,H,2468 Rayburn HOB,202-225-3065,(202)
225-8611,336-333-5005,howard.coble@mail.house.gov,http://www.house.gov/coble/
NC07,McIntyre,Mike,D,H,228 Cannon HOB,202-225-2731,(202)
225-5773,910-323-0260,congmcintyre@mail.house.gov,http://www.house.gov/mcintyre/
NC08,Hayes,Robin,R,H,130 Cannon HOB,202-225-3715,(202)
225-4036,704-786-1612,http://www.house.gov/writerep/,http://www.house.gov/hayes/
NC09,Myrick,Sue,R,H,230 Cannon HOB,202-225-1976,(202)
225-3389,704-367-0852,myrick@mail.house.gov,http://www.house.gov/myrick/
NC10,Ballenger,Cass,R,H,2182 Rayburn HOB,202-225-2576,(202)
225-0316,828-327-6100,cass.ballenger@mail.house.gov,http://www.house.gov/ballenger/
NC11,Taylor,Charles H.,R,H,231 Cannon HOB,202-225-6401,Not
Public,828-251-1988,repcharles.taylor@mail.house.gov,http://www.house.gov/charlestaylor/
NC12,Watt,Melvin,D,H,2236 Rayburn HOB,202-225-1510,(202)
225-1512,704-344-9950,nc12.public@mail.house.gov,http://www.house.gov/watt/
NCJR,Edwards,John,D,S,225 Dirksen SOB,202-224-3154,(202)
228-1374,919-856-4245,http://edwards.senate.gov/mailform.html,http://edwards.senate.gov/
NCSR,Helms,Jesse,R,S,403 Dirksen SOB,202-224-6342,(202)
228-1339,919-856-4630,jesse_helms@helms.senate.gov,http://helms.senate.gov/
ND00,Pomeroy,Earl,D,H,1110 Longworth HOB,202-225-2611,(202)
226-0893,701-224-0355,Rep.Earl.Pomeroy@mail.house.gov,http://www.house.gov/pomeroy/
NDJR,Dorgan,Byron,D,S,713 Hart SOB,202-224-2551,(202)
224-1193,701-250-4618,senator@dorgan.senate.gov,http://dorgan.senate.gov/
NDSR,Conrad,Kent,D,S,530 Hart SOB,202-224-2043,(202)
224-7776,701-232-8030,senator@conrad.senate.gov,http://conrad.senate.gov/
NE01,Bereuter,Doug,R,H,2184 Rayburn HOB,202-225-4806,(202)
226-1148,402-438-1598,N/A,http://www.house.gov/bereuter/
NE02,Terry,Lee,R,H,1513 Longworth HOB,202-225-4155,(202)
226-5452,402-397-9944,talk2lee@mail.house.gov,http://www.house.gov/terry/
NE03,Osborne,Thomas W.,R,H,507 Cannon HOB,202-225-6435,(202)
226-1385,308-381-5555,http://www.house.gov/writerep/,http://www.house.gov/osborne/
NEJR,Nelson,Ben,D,S,720 Hart SOB,202-224-6551,(202)
228-0012,402-437-5246,senator@bennelson.senate.gov,http://bennelson.senate.gov/
NESR,Hagel,Chuck,R,S,248 Russell SOB,202-224-4224,(202)
224-5213,402-758-8981,http://hagel.senate.gov/Email/contact.html,http://hagel.senate.gov/
NH01,Sununu,John E.,R,H,316 Cannon HOB,202-225-5456,(202)
225-5822,603-641-9536,Rep.Sununu@mail.house.gov,http://www.house.gov/sununu/
NH02,Bass,Charles,R,H,218 Cannon HOB,202-225-5206,(202)
225-2946,603-226-0249,cbass@mail.house.gov,http://www.house.gov/bass/
NHJR,Gregg,Judd,R,S,393 Russell SOB,202-224-3324,(202)
224-4952,603-225-7115,mailbox@gregg.senate.gov,http://gregg.senate.gov/
NHSR,Smith,Robert,R,S,G50 Dirksen SOB,202-224-2841,(202)
224-1353,603-634-5000,opinion@smith.senate.gov,http://smith.senate.gov/
NJ01,Andrews,Robert E.,D,H,2439 Rayburn HOB,202-225-6501,(202)
225-6583,856-848-3900,rob.andrews@mail.house.gov,http://www.house.gov/andrews/
NJ02,LoBiondo,Frank A.,R,H,225 Cannon HOB,202-225-6572,(202)
225-5318,609-625-5008,lobiondo@mail.house.gov,http://www.house.gov/lobiondo/
NJ03,Saxton,Jim ,R,H,339 Cannon HOB,202-225-4765,(202)
225-0778,609-261-5800,http://www.house.gov/writerep/,http://www.house.gov/saxton/
NJ04,Smith,Christopher,R,H,2373 Rayburn HOB,202-225-3765,(202)
225-7768,732-350-2300,http://www.house.gov/writerep/,http://www.house.gov/chrissmith/
NJ05,Roukema,Marge,R,H,2469 Rayburn HOB,202-225-4465,(202)
225-9048,201-447-3900,rep.roukema@mail.house.gov,http://www.house.gov/roukema/
NJ06,"Pallone, Jr.",Frank,D,H,420 Cannon HOB,202-225-4671,(202)
225-9665,732-571-1140,frank.pallone@mail.house.gov,http://www.house.gov/pallone/
NJ07,Ferguson,Michael,R,H,214 Cannon HOB,202-225-5361,(202)
225-9460,908-686-5576,N/A,http://www.house.gov/ferguson/
NJ08,"Pascrell, Jr.",Bill,D,H,1722 Longworth HOB,202-225-5751,(202)
225-5782,973-523-5152,bill.pascrell@mail.house.gov,http://www.house.gov/pascrell/
NJ09,Rothman,Steven R.,D,H,1607 Longworth HOB,202-225-5061,(202)
225-5851,201-646-0808,http://www.house.gov/writerep/,http://www.house.gov/rothman/
NJ10,Payne,Donald M.,D,H,2209 Rayburn HOB,202-225-3436,(202)
225-4160,973-645-3213,http://www.house.gov/writerep/,http://www.house.gov/payne/
NJ11,Frelinghuysen,Rodney P.,R,H,2442 Rayburn HOB,202-225-5034,(202)
225-3186,973-984-0711,rodney.frelinghuysen@mail.house.gov,http://www.house.gov/frelinghuysen/
NJ12,Holt,Rush,D,H,1630 Longworth HOB,202-225-5801,(202)
225-6025,609-750-9365,rush.holt@mail.house.gov,http://www.house.gov/rholt/
NJ13,Menendez,Robert,D,H,2238 Rayburn HOB,202-225-7919,(202)
226-0792,201-222-2828,menendez@mail.house.gov,http://menendez.house.gov/
NJJR,Corzine,Jon,D,S,502 Hart SOB,202-224-4744,(202)

228-2197,973-645-3030,http://corzine.senate.gov/comment.html,http://corzine.senate.gov/
NJSR,Torricelli,Robert,D,S,113 Dirksen SOB,202-224-3224,(202)
224-8567,973-624-5555,http://torricelli.senate.gov/webform.html,http://torricelli.senate.gov/
NM01,Wilson,Heather A.,R,H,318 Cannon HOB,202-225-6316,(202)
225-4975,505-766-2538,ask.heather@mail.house.gov,http://wilson.house.gov/
NM02,Skeen,Joe,R,H,2302 Rayburn HOB,202-225-2365,(202)
225-9599,505-527-1771,joe.skeen@mail.house.gov,http://joeskeen.house.gov/
NM03,Udall,Thomas,D,H,502 Cannon HOB,202-225-6190,(202)
226-7840,505-984-8950,http://www.house.gov/writerep/,http://www.house.gov/tomudall/
NMJR,Bingaman,Jeff,D,S,703 Hart SOB,202-224-5521,(202)
224-2852,505-988-6647,Senator_Bingaman@bingaman.senate.gov,http://bingaman.senate.gov/
NMSR,Domenici,Pete,R,S,328 Hart SOB,202-224-6621,(202)
224-7371,505-766-3481,senator_domenici@domenici.senate.gov,http://domenici.senate.gov/
NV01,Berkley,Shelley,D,H,439 Cannon HOB,202-225-5965,(202)
225-3119,702-220-9823,shelley.berkley@mail.house.gov,http://www.house.gov/berkley/
NV02,Gibbons,Jim ,R,H,100 Cannon HOB,202-225-6155,(202)
225-5679,775-686-5760,mail.gibbons@mail.house.gov,http://www.house.gov/gibbons/
NVJR,Ensign,John,R,S,364 Russell SOB,202-224-6244,(202)
228-2193,702-388-6605,N/A,http://ensign.senate.gov/
NVSR,Reid,Harry,D,S,528 Hart SOB,202-224-3542,(202)
224-7327,775-885-9111,senator_reid@reid.senate.gov,http://reid.senate.gov/
NY01,"Grucci, Jr.",Felix J.,R,H,1505 Longworth HOB,202-225-3826,(202)
225-3143,631-758-4600,N/A,http://www.house.gov/grucci/
NY02,Israel,Steve J.,D,H,429 Cannon HOB,202-225-3335,(202)
225-4669,631-665-7333,N/A,http://www.house.gov/israel/
NY03,King,Peter T.,R,H,436 Cannon HOB,202-225-7896,(202)
226-2279,516-541-4225,peter.king@mail.house.gov,http://www.house.gov/king/
NY04,McCarthy,Carolyn,D,H,1224 Longworth HOB,202-225-5516,(202)
225-5758,516-489-7066,http://www.house.gov/writerep/,http://www.house.gov/carolynmccarthy/
NY05,Ackerman,Gary L.,D,H,2243 Rayburn HOB,202-225-2601,(202)
225-1589,718-423-2154,http://www.house.gov/writerep/,http://www.house.gov/ackerman/
NY06,Meeks,Gregory W.,D,H,1710 Longworth HOB,202-225-3461,(202)
226-4169,718-337-9791,congmeeks@mail.house.gov,http://www.house.gov/meeks/
NY07,Crowley,Joseph,D,H,312 Cannon HOB,202-225-3965,(202)
225-1909,718-779-1400,write2joecrowley@mail.house.gov,http://www.house.gov/crowley/
NY08,Nadler,Jerrold,D,H,2334 Rayburn HOB,202-225-5635,(202)
225-6923,212-334-3207,jerrold.nadler@mail.house.gov,http://www.house.gov/nadler/
NY09,Weiner,Anthony,D,H,222 Cannon HOB,202-225-6616,(202)
225-4183,718-332-9001,http://www.house.gov/writerep/,http://www.house.gov/weiner/
NY10,Towns,Edolphus,D,H,2232 Rayburn HOB,202-225-5936,(202)
225-1018,718-774-5682,N/A,http://www.house.gov/towns/
NY11,Owens,Major R.,D,H,2309 Rayburn HOB,202-225-6231,(202)
226-0112,718-940-3213,major.owens@mail.house.gov,http://www.house.gov/owens/
NY12,Velazquez,Nydia M.,D,H,2241 Rayburn HOB,202-225-2361,(202)
226-0327,718-599-3658,N/A,http://www.house.gov/velazquez/
NY13,"Fossella, Jr.",Vito J.,R,H,1239 Longworth HOB,202-225-3371,(202)
226-1272,718-987-8400,vito.fossella@mail.house.gov,http://www.house.gov/fossella/
NY14,Maloney,Carolyn B.,D,H,2430 Rayburn HOB,202-225-7944,(202)
225-4709,212-860-0606,rep.carolyn.maloney@mail.house.gov,http://www.house.gov/maloney/
NY15,Rangel,Charles B.,D,H,2354 Rayburn HOB,202-225-4365,(202)
225-0816,212-663-3900,http://www.house.gov/writerep/,http://www.house.gov/rangel/
NY16,Serrano,Jose,D,H,2342 Rayburn HOB,202-225-4361,(202)
225-6001,718-538-5400,jserrano@mail.house.gov,http://www.house.gov/serrano/
NY17,Engel,Eliot L.,D,H,2303 Rayburn HOB,202-225-2464,(202)
225-5513,718-796-9700,http://www.house.gov/writerep/,http://www.house.gov/engel/
NY18,Lowey,Nita M.,D,H,2329 Rayburn HOB,202-225-6506,(202)
225-0506,914-428-1707,nita.lowey@mail.house.gov,http://www.house.gov/lowey/
NY19,Kelly,Sue W.,R,H,1127 Longworth HOB,202-225-5441,(202)
225-3289,845-897-5200,dearsue@mail.house.gov,http://www.house.gov/suekelly/
NY20,Gilman,Benjamin A.,R,H,2449 Rayburn HOB,202-225-3776,(202)
225-2541,845-343-6666,http://www.house.gov/writerep/,http://www.house.gov/gilman/
NY21,McNulty,Michael R.,D,H,2161 Rayburn HOB,202-225-5076,(202)
225-5077,518-465-0700,mike.mcnulty@mail.house.gov,http://www.house.gov/mcnulty/
NY22,Sweeney,John,R,H,437 Cannon HOB,202-225-5614,(202)
225-6234,518-587-9800,http://www.house.gov/writerep/,http://www.house.gov/sweeney/
NY23,Boehlert,Sherwood L.,R,H,2246 Rayburn HOB,202-225-3665,(202)
225-1891,315-793-8146,Rep.Boehlert@mail.house.gov,http://www.house.gov/boehlert/
NY24,McHugh,John M.,R,H,2441 Rayburn HOB,202-225-4611,(202)
226-0621,315-782-3150,http://www.house.gov/writerep/,http://www.house.gov/mchugh/
NY25,Walsh,James T.,R,H,2351 Rayburn HOB,202-225-3701,(202)
225-4042,607-758-3918,rep.james.walsh@mail.house.gov,http://www.house.gov/walsh/
NY26,Hinchey,Maurice,D,H,2431 Rayburn HOB,202-225-6335,(202)

226-0774,607-773-2768,http://www.house.gov/writerep/,http://www.house.gov/hinchey/
NY27,Reynolds,Thomas,R,H,413 Cannon HOB,202-225-5265,(202)
225-5910,716-634-2324,http://www.house.gov/writerep/,http://www.house.gov/reynolds/
NY28,Slaughter,Louise,D,H,2347 Rayburn HOB,202-225-3615,(202)
225-7822,716-232-4850,louiseny@mail.house.gov,http://www.house.gov/slaughter/
NY29,LaFalce,John J.,D,H,2310 Rayburn HOB,202-225-3231,(202)
225-8693,716-846-4056,http://www.house.gov/writerep/,http://www.house.gov/lafalce/
NY30,Quinn,Jack,R,H,2448 Rayburn HOB,202-225-3306,(202)
226-0347,716-845-5257,http://www.house.gov/writerep/,http://www.house.gov/quinn/
NY31,Houghton,Amory,R,H,1111 Longworth HOB,202-225-3161,(202)
225-5574,607-937-3333,http://www.house.gov/writerep/,http://houghton.house.gov/
NYJR,Clinton,Hillary Rodham,D,S,476 Russell SOB,202-224-4451,(202)
228-0282,212-661-5150,http://clinton.senate.gov/email_form.html,http://clinton.senate.gov/
NYSR,Schumer,Charles,D,S,313 Hart SOB,202-224-6542,(202)
228-3027,212-486-4430,senator@schumer.senate.gov,http://schumer.senate.gov/
OH01,Chabot,Steve,R,H,129 Cannon HOB,202-225-2216,(202)
225-3012,513-684-2723,http://www.house.gov/writerep/,http://www.house.gov/chabot/
OH02,Portman,Rob,R,H,238 Cannon HOB,202-225-3164,(202)
225-1992,513-791-0381,portmail@mail.house.gov,http://www.house.gov/portman/
OH03,Hall,Tony,D,H,1432 Longworth HOB,202-225-6465,(202)
226-1443,937-225-2843,http://www.house.gov/writerep/,http://www.house.gov/tonyhall/
OH04,Oxley,Michael G.,R,H,2233 Rayburn HOB,202-225-2676,Not
Public,419-423-3210,mike.oxley@mail.house.gov,http://www.house.gov/oxley/
OH05,Gillmor,Paul E.,R,H,1203 Longworth HOB,202-225-6405,(202)
225-1985,419-734-1999,http://www.house.gov/writerep/,http://www.house.gov/gillmor/
OH06,Strickland,Ted,D,H,336 Cannon HOB,202-225-5705,(202)
225-5907,740-353-5171,http://www.house.gov/writerep/,http://www.house.gov/strickland/
OH07,Hobson,David L.,R,H,1514 Longworth HOB,202-225-4324,(202)
225-1984,937-325-0474,http://www.house.gov/hobson/formmail.htm,http://www.house.gov/hobson/
OH08,Boehner,John A.,R,H,1011 Longworth HOB,202-225-6205,(202)
225-0704,513-870-0300,john.boehner@mail.house.gov,http://www.house.gov/boehner/
OH09,Kaptur,Marcy,D,H,2366 Rayburn HOB,202-225-4146,(202)
225-7711,419-259-7500,rep.kaptur@mail.house.gov,http://www.house.gov/kaptur/
OH10,Kucinich,Dennis J.,D,H,1730 Longworth HOB,202-225-5871,(202)
225-5745,216-228-8850,http://www.house.gov/writerep/,http://www.house.gov/kucinich/index.htm
OH11,Jones,Stephanie T.,D,H,1516 Longworth HOB,202-225-7032,(202)
225-1339,216-522-4900,stephanie.tubbs.jones@mail.house.gov,http://www.house.gov/tubbsjones/
OH12,Tiberi,Patrick J.,R,H,508 Cannon HOB,202-225-5355,(202)
226-4532,614-523-2555,http://www.house.gov/writerep/,http://www.house.gov/tiberi/
OH13,Brown,Sherrod,D,H,2438 Rayburn HOB,202-225-3401,(202)
225-2266,440-934-5100,sherrod@mail.house.gov,http://www.house.gov/sherrodbrown/
OH14,Sawyer,Thomas C.,D,H,1414 Longworth HOB,202-225-5231,(202)
225-5278,330-375-5710,N/A,http://www.house.gov/sawyer/
OH15,Pryce,Deborah,R,H,221 Cannon HOB,202-225-2015,(202)
226-0986,614-469-5614,pryce.oh15@mail.house.gov,http://www.house.gov/pryce/
OH16,Regula,Ralph,R,H,2306 Rayburn HOB,202-225-3876,(202)
225-3059,330-489-4414,http://www.house.gov/writerep/,http://www.house.gov/regula/
OH17,"Traficant, Jr.",James A.,D,H,2446 Rayburn HOB,202-225-5261,(202)
225-3719,330-788-2414,telljim@mail.house.gov,http://www.house.gov/traficant/
OH18,Ney,Robert W.,R,H,1024 Longworth HOB,202-225-6265,(202)
225-3394,740-676-1960,bobney@mail.house.gov,http://www.house.gov/ney/
OH19,LaTourette,Steven C.,R,H,2453 Rayburn HOB,202-225-5731,(202)
225-3307,440-352-3939,steve.latourette@mail.house.gov,http://www.house.gov/latourette/
OHJR,Voinovich,George Victor,R,S,317 Hart SOB,202-224-3353,(202)
228-1382,614-469-6697,senator_voinovich@voinovich.senate.gov,http://voinovich.senate.gov/
OHSR,DeWine,Mike,R,S,140 Russell SOB,202-224-2315,(202)
224-6519,614-469-5186,senator_dewine@dewine.senate.gov,http://dewine.senate.gov/
OK01,Largent,Steve,R,H,106 Cannon HOB,202-225-2211,(202)
225-9187,918-749-0014,http://www.house.gov/writerep/,http://www.house.gov/largent/
OK02,Carson,Brad,D,H,317 Cannon HOB,202-225-2701,(202)
225-3038,918-341-9336,N/A,http://www.house.gov/bradcarson/
OK03,Watkins,Wes,R,H,1401 Longworth HOB,202-225-4565,(202)
225-5966,405-743-1400,wes.watkins@mail.house.gov,http://www.house.gov/watkins/
OK04,"Watts, Jr.",J.C.,R,H,1007 Longworth HOB,202-225-6165,(202)
225-3512,405-329-6500,rep.jcwatts@mail.house.gov,http://www.house.gov/watts/
OK05,"Istook, Jr.",Ernest J.,R,H,2404 Rayburn HOB,202-225-2132,(202)
226-1463,405-942-3636,istook@mail.house.gov,http://www.house.gov/istook/
OK06,Lucas,Frank D.,R,H,438 Cannon HOB,202-225-5565,(202)
225-8698,405-235-5311,replucas@mail.house.gov,http://www.house.gov/lucas/
OKJR,Inhofe,James,R,S,453 Russell SOB,202-224-4721,(202)
228-0380,918-748-5111,jim_inhofe@inhofe.senate.gov,http://inhofe.senate.gov/
OKSR,Nickles,Don,R,S,133 Hart SOB,202-224-5754,(202)
224-6008,405-231-4941,senator@nickles.senate.gov,http://nickles.senate.gov/

OR01,Wu,David,D,H,1023 Longworth HOB,202-225-0855,(202)
225-9497,503-326-2901,http://www.house.gov/wu/generalform.htm,http://www.house.gov/wu/
OR02,Walden,Greg,R,H,1404 Longworth HOB,202-225-6730,(202)
225-5774,541-776-4646,greg.walden@mail.house.gov,http://www.house.gov/walden/
OR03,Blumenauer,Earl,D,H,1406 Longworth HOB,202-225-4811,(202)
225-8941,503-231-2300,http://www.house.gov/writerep/,http://www.house.gov/blumenauer/
OR04,DeFazio,Peter A.,D,H,2134 Rayburn HOB,202-225-6416,(202)
225-0373,541-465-6732,http://www.house.gov/writerep/,http://www.house.gov/defazio/
OR05,Hooley,Darlene,D,H,1130 Longworth HOB,202-225-5711,(202)
225-5699,503-588-9100,darlene@mail.house.gov,http://www.house.gov/hooley/
ORJR,Smith,Gordon H.,R,S,404 Russell SOB,202-224-3753,(202)
228-3997,503-326-3386,http://gsmith.senate.gov/webform.htm,http://gsmith.senate.gov/
ORSR,Wyden,Ron,D,S,516 Hart SOB,202-224-5244,(202)
228-2717,503-326-7525,http://wyden.senate.gov/mail.htm,http://wyden.senate.gov/
PA01,Brady,Robert A.,D,H,216 Cannon HOB,202-225-4731,(202)
225-0088,215-389-4627,robert.a.brady@mail.house.gov,http://www.house.gov/robertbrady/
PA02,Fattah,Chaka,D,H,1205 Longworth HOB,202-225-4001,(202)
225-3127,215-387-6404,http://www.house.gov/writerep/,http://www.house.gov/fattah/
PA03,Borski,Robert A.,D,H,2409 Rayburn HOB,202-225-8251,(202)
225-4628,215-426-4616,robert.borski@mail.house.gov,http://www.house.gov/borski/
PA04,Hart,Melissa A.,R,H,1508 Longworth HOB,202-225-2565,(202)
226-2274,724-779-1330,rep.hart@mail.house.gov,http://www.house.gov/hart/
PA05,Peterson,John E.,R,H,307 Cannon HOB,202-225-5121,(202)
225-5796,814-726-3910,http://www.house.gov/writerep/,http://www.house.gov/johnpeterson/
PA06,Holden,Tim,D,H,2417 Rayburn HOB,202-225-5546,(202)
226-0996,610-371-9931,http://www.house.gov/writerep/,http://www.house.gov/holden/
PA07,Weldon,Curt,R,H,2466 Rayburn HOB,202-225-2011,(202)
225-8137,610-259-0700,curtpa07@mail.house.gov,http://www.house.gov/curtweldon/
PA08,Greenwood,James C.,R,H,2436 Rayburn HOB,202-225-4276,(202)
225-9511,215-348-7511,http://www.house.gov/writerep/,http://www.house.gov/greenwood/
PA09,Schuster,Bill,R,H,2188 Rayburn HOB,202-225-2431,(202)
225-2486,N/A,N/A,http://www.house.gov/shuster/
PA10,Sherwood,Donald,R,H,1223 Longworth HOB,202-225-3731,(202)
225-9594,570-346-3834,http://www.house.gov/writerep/,http://www.house.gov/sherwood/
PA11,Kanjorski,Paul E.,D,H,2353 Rayburn HOB,202-225-6511,(202)
225-9024,570-825-2200,paul.kanjorski@mail.house.gov,http://www.house.gov/kanjorski/
PA12,Murtha,John P.,D,H,2423 Rayburn HOB,202-225-2065,(202)
225-5709,814-535-2642,murtha@mail.house.gov,http://www.house.gov/murtha/
PA13,Hoeffel,Joseph,D,H,1229 Longworth HOB,202-225-6111,(202)
226-0611,610-272-8400,http://www.house.gov/writerep/,http://www.house.gov/hoeffel/
PA14,Coyne,William J.,D,H,2455 Rayburn HOB,202-225-2301,(202)
225-1844,412-644-2870,N/A,http://www.house.gov/coyne/
PA15,Toomey,Patrick,R,H,224 Cannon HOB,202-225-6411,(202)
226-0778,610-439-8861,rep.toomey.pa15@mail.house.gov,http://www.house.gov/toomey/
PA16,Pitts,Joseph R.,R,H,204 Cannon HOB,202-225-2411,(202)
225-2013,717-393-0667,pitts.pa16@mail.house.gov,http://www.house.gov/pitts/
PA17,Gekas,George W.,R,H,2109 Rayburn HOB,202-225-4315,(202)
225-8440,717-541-5507,askgeorge@mail.house.gov,http://www.house.gov/gekas/
PA18,Doyle,Michael F.,D,H,133 Cannon HOB,202-225-2135,(202)
225-3084,412-664-4049,rep.doyle@mail.house.gov,http://www.house.gov/doyle/
PA19,Platts,Todd R.,R,H,1032 Longworth HOB,202-225-5836,(202)
226-1000,717-338-1919,N/A,http://www.house.gov/platts/
PA20,Mascara,Frank,D,H,314 Cannon HOB,202-225-4665,(202)
225-3377,724-228-4326,http://www.house.gov/writerep/,http://www.house.gov/mascara/
PA21,English,Phil,R,H,1410 Longworth HOB,202-225-5406,(202)
225-3103,814-456-2038,http://www.house.gov/writerep/,http://www.house.gov/english/
PAJR,Santorum,Rick,R,S,120 Russell SOB,202-224-6324,(202)
228-0604,412-562-0533,http://santorum.senate.gov/emailrjs.html,http://santorum.senate.gov/
PASR,Specter,Arlen,R,S,711 Hart SOB,202-224-4254,(202)
228-1229,215-597-7200,http://www.senate.gov/~specter/webform.htm,http://specter.senate.gov/
PR00,Acevedo-Vila,Anibal,D,H,126 Cannon HOB,202-225-2615,(202)
225-2154,787-723-6333,anibal@mail.house.gov,http://www.house.gov/acevedo-vila/
RI01,Kennedy,Patrick J.,D,H,407 Cannon HOB,202-225-4911,(202)
225-3290,401-729-5600,patrick.kennedy@mail.house.gov,http://www.house.gov/patrickkennedy/
RI02,Langevin,James R.,D,H,109 Cannon HOB,202-225-2735,(202)
225-5976,401-732-9400,james.langevin@mail.house.gov,http://www.house.gov/langevin/
RIJR,Chafee,Lincoln D.,R,S,141-A Russell SOB,202-224-2921,(202)
228-2853,401-528-5294,senator_chafee@chafee.senate.gov,http://chafee.senate.gov/
RISR,Reed,John F.,D,S,320 Hart SOB,202-224-4642,(202)
224-4680,401-943-3100,jack@reed.senate.gov,http://reed.senate.gov/
SC01,"Brown, Jr.",Henry E.,R,H,1017 Longworth HOB,202-225-3176,(202)
225-3407,843-747-4175,writehenrybrown@mail.house.gov,http://www.house.gov/henrybrown/

SC02,***Vacant***,***Vacant***,R,H,2405 Rayburn HOB,202-225-2452,(202)
225-2455,803-254-5120,N/A,N/A
SC03,Graham,Lindsey,R,H,1429 Longworth HOB,202-225-5301,(202)
225-3216,864-224-7401,http://www.house.gov/graham/Opinions/opinions3.htm,http://www.house.gov/graham/
SC04,DeMint,James,R,H,504 Cannon HOB,202-225-6030,(202)
226-1177,864-582-6472,jim.demint@mail.house.gov,http://www.demint.house.gov/
SC05,"Spratt, Jr.",John M.,D,H,1536 Longworth HOB,202-225-5501,(202)
225-0464,803-327-1114,http://www.house.gov/writerep/,http://www.house.gov/spratt/
SC06,Clyburn,James E.,D,H,319 Cannon HOB,202-225-3315,(202)
225-2313,803-799-1100,jclyburn@mail.house.gov,http://www.house.gov/clyburn/
SCJR,Hollings,Ernest,D,S,125 Russell SOB,202-224-6121,(202)
224-4293,803-765-5731,http://hollings.senate.gov/webform.html,http://hollings.senate.gov/
SCSR,Thurmond,Strom,R,S,217 Russell SOB,202-224-5972,(202)
224-1300,803-765-5494,senator@thurmond.senate.gov,http://thurmond.senate.gov/
SD00,Thune,John R.,R,H,1005 Longworth HOB,202-225-2801,(202)
225-5823,605-331-1010,jthune@mail.house.gov,http://johnthune.house.gov/
SDJR,Johnson,Tim P.,D,S,324 Hart SOB,202-224-5842,(202)
228-5765,605-332-8896,tim@johnson.senate.gov,http://johnson.senate.gov/
SDSR,Daschle,Thomas,D,S,509 Hart SOB,202-224-2321,(202)
224-2047,605-225-8823,tom_daschle@daschle.senate.gov,http://daschle.senate.gov/
TN01,Jenkins,William J.,R,H,1708 Longworth HOB,202-225-6356,(202)
225-5714,423-247-8161,http://www.house.gov/writerep/,http://www.house.gov/jenkins/
TN02,"Dincan, Jr.",John J.,R,H,2400 Rayburn HOB,202-225-5435,(202)
225-6440,865-523-3772,http://www.house.gov/writerep/,http://www.house.gov/duncan/
TN03,Wamp,Zach,R,H,423 Cannon HOB,202-225-3271,(202)
225-3494,423-894-7400,http://www.house.gov/writerep/,http://www.house.gov/wamp/
TN04,Hilleary,Van,R,H,114 Cannon HOB,202-225-6831,(202)
225-3272,931-393-4764,http://www.house.gov/writerep/,http://www.house.gov/hilleary/
TN05,Clement,Bob,D,H,2229 Rayburn HOB,202-225-4311,(202)
226-1035,615-736-5295,bob.clement@mail.house.gov,http://www.house.gov/clement/
TN06,Gordon,Bart,D,H,2368 Rayburn HOB,202-225-4231,(202)
225-6887,615-896-1986,http://www.house.gov/writerep/,http://www.house.gov/gordon/
TN07,Bryant,Ed,R,H,408 Cannon HOB,202-225-2811,(202)
225-2989,901-382-5811,http://www.house.gov/writerep/,http://www.house.gov/bryant/
TN08,Tanner,John S.,D,H,1226 Longworth HOB,202-225-4714,(202)
225-1765,901-873-5690,http://www.house.gov/tanner/email.htm,http://www.house.gov/tanner/
TN09,"Ford, Jr.",Harold E.,D,H,325 Cannon HOB,202-225-3265,(202)
225-5663,901-544-4131,rep.harold.ford.jr@mail.house.gov,http://www.house.gov/ford/
TNJR,Frist,Bill,R,S,416 Russell SOB,202-224-3344,(202)
228-1624,615-352-9411,senator_frist@frist.senate.gov,http://frist.senate.gov/
TNSR,Thompson,Fred,R,S,511 Dirksen SOB,202-224-4944,(202)
228-3679,615-736-5129,senator_thompson@thompson.senate.gov,http://thompson.senate.gov/
TX01,Sandlin,Max,D,H,324 Cannon HOB,202-225-3035,(202)
225-5866,903-938-8386,http://www.house.gov/writerep/,http://www.house.gov/sandlin/
TX02,Turner,Jim,D,H,208 Cannon HOB,202-225-2401,(202)
225-5955,936-637-1770,tx02wyr@mail.house.gov,http://www.house.gov/turner/
TX03,Johnson,Sam,R,H,1030 Longworth HOB,202-225-4201,(202)
225-1485,214-739-0182,http://wwwa.house.gov/samjohnson/IMA/get_address.htm,http://www.house.gov/samjohnson/
TX04,Hall,Ralph M.,D,H,2221 Rayburn HOB,202-225-6673,(202)
225-3332,972-771-9118,rmhall@mail.house.gov,http://www.house.gov/ralphhall/
TX05,Sessions,Pete,R,H,1318 Longworth HOB,202-225-2231,(202)
225-5878,214-349-9996,petes@mail.house.gov,http://www.house.gov/sessions/
TX06,Barton,Joe,R,H,2264 Rayburn HOB,202-225-2002,(202)
225-3052,817-543-1000,http://www.house.gov/barton/get_address.htm,http://www.house.gov/barton/
TX07,Culberson,John A.,R,H,1728 Longworth HOB,202-225-2571,(202)
225-4381,713-682-8828,john.culberson@mail.house.gov,http://www.culberson.house.gov/
TX08,Brady,Kevin,R,H,428 Cannon HOB,202-225-4901,(202)
225-5524,281-895-8892,rep.brady@mail.house.gov,http://www.house.gov/brady/
TX09,Lampson,Nick,D,H,417 Cannon HOB,202-225-6565,(202)
226-8751,409-838-0061,http://www.house.gov/lampson/email.htm,http://www.house.gov/lampson/
TX10,Doggett,Lloyd,D,H,328 Cannon HOB,202-225-4865,(202)
225-3073,512-916-5921,lloyd.doggett@mail.house.gov,http://www.house.gov/doggett/
TX11,Edwards,Chet,D,H,2459 Rayburn HOB,202-225-6105,(202)
225-0350,254-752-9600,N/A,http://www.house.gov/edwards/
TX12,Granger,Kay,R,H,435 Cannon HOB,202-225-5071,(202)
225-5683,817-338-0909,texas.granger@mail.house.gov,http://kaygranger.house.gov/
TX13,Thornberry,William M.,R,H,131 Cannon HOB,202-225-3706,(202)
225-3486,806-371-8844,http://www.house.gov/writerep/,http://www.house.gov/thornberry/
TX14,Paul,Ron,R,H,203 Cannon HOB,202-225-2831,(202)
225-5785,361-576-1231,rep.paul@mail.house.gov,http://www.house.gov/paul/
TX15,Hinojosa,Ruben,D,H,1535 Longworth HOB,202-225-2531,(202)
225-5688,956-682-5545,Rep.Hinojosa@mail.house.gov,http://www.house.gov/hinojosa/
TX16,Reyes,Silvester,D,H,1527 Longworth HOB,202-225-4831,(202)

225-2016,915-534-4400,http://www.house.gov/writerep/,http://www.house.gov/reyes/
TX17,Stenholm,Charles W.,D,H,1211 Longworth HOB,202-225-6605,(202)
225-2234,915-773-3623,http://www.house.gov/writerep/,http://www.house.gov/stenholm/
TX18,Jackson-Lee,Sheila,D,H,403 Cannon HOB,202-225-3816,(202)
225-3317,713-655-0050,http://www.house.gov/writerep/,http://www.house.gov/jacksonlee/
TX19,Combest,Larry,R,H,1026 Longworth HOB,202-225-4005,(202)
225-9615,806-763-1611,http://www.house.gov/writerep/,http://www.house.gov/combest/
TX20,Gonzalez,Charlie A.,D,H,327 Cannon HOB,202-225-3236,(202)
225-1915,210-472-6195,http://www.house.gov/writerep/,http://www.house.gov/gonzalez/
TX21,Smith,Lamar S.,R,H,2231 Rayburn HOB,202-225-4236,(202)
225-8628,210-821-5024,http://www.house.gov/writerep/,http://www.house.gov/lamarsmith/
TX22,DeLay,Tom,R,H,2370 Rayburn HOB,202-225-5951,(202)
225-5241,281-240-3700,thewhip@mail.house.gov,http://tomdelay.house.gov/
TX23,Bonilla,Henry,R,H,2458 Rayburn HOB,202-225-4511,(202)
225-2237,210-697-9055,http://www.house.gov/writerep/,http://www.house.gov/bonilla/
TX24,Frost,Martin,D,H,2256 Rayburn HOB,202-225-3605,(202)
225-4951,214-948-3401,martin.frost@mail.house.gov,http://www.house.gov/frost/
TX25,Bentsen,Ken,D,H,405 Cannon HOB,202-225-7508,(202)
225-2947,713-667-3554,http://www.house.gov/writerep/,http://www.house.gov/bentsen/
TX26,Armey,Richard K.,R,H,301 Cannon HOB,202-225-7772,(202)
226-8100,972-556-2500,http://www.house.gov/writerep/,http://armey.house.gov/
TX27,Ortiz,Solomon P.,D,H,2304 Rayburn HOB,202-225-7742,(202)
226-1134,361-883-5868,N/A,http://www.house.gov/ortiz/
TX28,Rodriquez,Ciro D.,D,H,323 Cannon HOB,202-225-1640,(202)
225-1641,210-924-7383,http://www.house.gov/writerep/,http://www.house.gov/rodriguez/
TX29,Green,Gene,D,H,2335 Rayburn HOB,202-225-1688,(202)
225-9903,713-923-9961,http://www.house.gov/writerep/,http://www.house.gov/green/
TX30,Johnson,Eddie Bernice,D,H,1511 Longworth HOB,202-225-8885,(202)
226-1477,214-922-8885,rep.e.b.johnson@mail.house.gov,http://www.house.gov/ebjohnson/
TXJR,Hutchinson,Kay B.,R,S,284 Russell SOB,202-224-5922,(202)
224-0776,713-653-3456,senator@hutchison.senate.gov,http://hutchison.senate.gov/
TXSR,Gramm,Phil,R,S,370 Russell SOB,202-224-2934,(202)
228-2856,214-767-3000,Phil_Gramm@gramm.senate.gov,http://gramm.senate.gov/
UT01,Hansen,James V.,R,H,242 Cannon HOB,202-225-0453,(202)
225-5857,801-393-8362,http://www.house.gov/writerep/,http://www.house.gov/hansen/
UT02,Matheson,James B.,D,H,410 Cannon HOB,202-225-3011,(202)
225-5638,801-524-4394,N/A,http://www.house.gov/matheson/
UT03,Cannon,Chris,R,H,118 Cannon HOB,202-225-7751,(202)
225-5629,801-379-2500,cannon.ut03@mail.house.gov,http://www.house.gov/cannon/
UTJR,Bennett,Robert,R,S,431 Dirksen SOB,202-224-5444,(202)
228-1168,801-524-5933,senator@bennett.senate.gov,http://bennett.senate.gov/
UTSR,Hatch,Orrin,R,S,104 Hart SOB,202-224-5251,(202)
224-6331,801-524-4380,senator_hatch@hatch.senate.gov,http://hatch.senate.gov/
VA01,Davis,Jo Ann,R,H,1123 Longworth HOB,202-225-4261,(202)
225-4382,757-874-6687,joann.davis@mail.house.gov,http://www.house.gov/joanndavis/
VA02,Schrock,Edward L.,R,H,128 Cannon HOB,202-225-4215,(202)
225-4218,757-497-6859,ed.schrock@mail.house.gov,http://schrock.house.gov/
VA03,Scott,Robert C.,D,H,2464 Rayburn HOB,202-225-8351,(202)
225-8354,757-380-1000,http://www.house.gov/writerep/,http://www.house.gov/scott/
VA04,Forbes,J. Randy,R,H,2371 Rayburn HOB,202-225-6365,(202)
226-1170,N/A,N/A,http://www.house.gov/forbes/
VA05,"Goode, Jr.",Virgil H.,I,H,1520 Longworth HOB,202-225-4711,(202)
225-5681,804-295-6372,rep.goode@mail.house.gov,http://www.house.gov/goode/
VA06,Goodlatte,Bob,R,H,2240 Rayburn HOB,202-225-5431,(202)
225-9681,540-857-2672,talk2bob@mail.house.gov,http://www.house.gov/goodlatte/
VA07,Cantor,Eric I.,R,H,329 Cannon HOB,202-225-2815,(202)
225-0011,804-771-2809,eric.cantor@mail.house.gov,http://cantor.house.gov/
VA08,Moran,James P.,D,H,2239 Rayburn HOB,202-225-4376,(202)
225-0017,703-971-4700,http://www.house.gov/moran/letstalk.htm,http://www.house.gov/moran/
VA09,Boucher,Rick,D,H,2187 Rayburn HOB,202-225-3861,(202)
225-0442,540-628-1145,ninthnet@mail.house.gov,http://www.house.gov/boucher/
VA10,Wolf,Frank R.,R,H,241 Cannon HOB,202-225-5136,(202)
225-0437,703-709-5800,http://www.house.gov/writerep/,http://www.house.gov/wolf/
VA11,Davis,Thomas,R,H,306 Cannon HOB,202-225-1492,(202)
225-3071,703-916-9610,tom.davis@mail.house.gov,http://www.house.gov/tomdavis/
VAJR,Allen,George,R,S,204 Russell SOB,202-224-4024,(202)
224-5432,804-771-2221,http://allen.senate.gov/email.html,http://allen.senate.gov/
VASR,Warner,John,R,S,225 Russell SOB,202-224-2023,(202)
224-6295,804-771-2579,senator@warner.senate.gov,http://warner.senate.gov/
VI00,Christian-Christensen,Donna M.,D,H,1510 Longworth HOB,202-225-1790,(202)
225-5517,340-774-4408,http://www.house.gov/writerep/,http://www.house.gov/christian-christensen/
VT00,Sanders,Bernard,I,H,2135 Rayburn HOB,202-225-4115,(202)

225-6790,802-862-0697,bernie@mail.house.gov,http://www.house.gov/bernie/
VTJR,Jeffords,Jim,I,S,728 Hart SOB,202-224-5141,Not
Public,802-658-6001,vermont@jeffords.senate.gov,http://jeffords.senate.gov/
VTSR,Leahy,Patrick,D,S,433 Russell SOB,202-224-4242,Not
Public,802-863-2525,senator_leahy@leahy.senate.gov,http://leahy.senate.gov/
WA01,Inslee,Jay,D,H,308 Cannon HOB,202-225-6311,(202)
226-1606,425-640-0233,jay.inslee@mail.house.gov,http://www.house.gov/inslee/
WA02,Larsen,Richard R.,D,H,1529 Longworth HOB,202-225-2605,(202)
225-4420,360-733-4500,rick.larsen@mail.house.gov,http://www.house.gov/larsen/
WA03,Baird,Brian,D,H,1721 Longworth HOB,202-225-3536,(202)
225-3478,360-695-6292,brian.baird@mail.house.gov,http://www.house.gov/baird/
WA04,Hastings,Doc,R,H,1323 Longworth HOB,202-225-5816,(202)
225-3251,509-543-9396,http://www.house.gov/writerep/,http://www.house.gov/hastings/
WA05,"Nethercutt, Jr.",George R.,R,H,223 Cannon HOB,202-225-2006,(202)
225-3392,509-353-2374,george.nethercutt-pub@mail.house.gov,http://www.house.gov/nethercutt/
WA06,Dicks,Norman D.,D,H,2467 Rayburn HOB,202-225-5916,(202)
226-1176,253-593-6536,http://www.house.gov/writerep/,http://www.house.gov/dicks/
WA07,McDermott,Jim,D,H,1035 Longworth HOB,202-225-3106,(202)
225-9212,206-553-7170,http://www.house.gov/writerep/,http://www.house.gov/mcdermott/
WA08,Dunn,Jennifer,R,H,1501 Longworth HOB,202-225-7761,(202)
225-8673,206-275-3438,dunnwa08@mail.house.gov,http://www.house.gov/dunn/
WA09,Smith,Adam,D,H,116 Cannon HOB,202-225-8901,(202)
225-5893,253-926-6683,adam.smith@mail.house.gov,http://www.house.gov/adamsmith/
WAJR,Cantwell,Maria,D,S,717 Hart SOB,202-224-3441,(202)
224-0514,206-220-6400,maria@cantwell.senate.gov,http://cantwell.senate.gov/
WASR,Murray,Patty,D,S,173 Russell SOB,202-224-2621,(202)
224-0238,206-553-5545,senator_murray@murray.senate.gov,http://murray.senate.gov/
WI01,Ryan,Paul,R,H,1217 Longworth HOB,202-225-3031,(202)
225-3393,608-752-4050,http://www.house.gov/ryan/emailzipcheck.html,http://www.house.gov/ryan/
WI02,Baldwin,Tammy,D,H,1022 Longworth HOB,202-225-2906,(202)
225-6942,608-258-9800,tammy.baldwin@mail.house.gov,http://tammybaldwin.house.gov/
WI03,Kind,Ron,D,H,1713 Longworth HOB,202-225-5506,(202)
225-5739,608-782-2558,ron.kind@mail.house.gov,http://www.house.gov/kind/
WI04,Kleczka,Gerald D.,D,H,2301 Rayburn HOB,202-225-4572,(202)
225-8135,414-297-1140,http://www.house.gov/writerep/,http://www.house.gov/kleczka/
WI05,Barrett,Thomas M.,D,H,1214 Longworth HOB,202-225-3571,(202)
225-2185,414-297-1331,telltom@mail.house.gov,http://www.house.gov/barrett/
WI06,Petri,Thomas E.,R,H,2462 Rayburn HOB,202-225-2476,(202)
225-2356,920-922-1180,http://www.house.gov/writerep/,http://www.house.gov/petri/
WI07,Obey,David R.,D,H,2314 Rayburn HOB,202-225-3365,(202)
225-3240,715-842-5606,http://www.house.gov/writerep/,http://www.house.gov/obey/
WI08,Green,Mark,R,H,1218 Longworth HOB,202-225-5665,(202)
225-5729,920-437-1954,mark.green@mail.house.gov,http://www.house.gov/markgreen/
WI09,"Sensenbrenner, Jr.",F. James,R,H,2332 Rayburn HOB,202-225-5101,(202)
225-3190,262-784-1111,sensen09@mail.house.gov,http://www.house.gov/sensenbrenner/
WIJR,Feingold,Russ,D,S,506 Hart SOB,202-224-5323,(202)
224-2725,608-828-1200,webpage@feingold.senate.gov,http://feingold.senate.gov/
WISR,Kohl,Herbert,D,S,330 Hart SOB,202-224-5653,(202)
224-9787,414-297-4451,senator_kohl@kohl.senate.gov,http://kohl.senate.gov/
WV01,Mollohan,Alan,D,H,2346 Rayburn HOB,202-225-4172,(202)
225-7564,304-623-4422,N/A,http://www.house.gov/mollohan/
WV02,Capito,Shelley,R,H,1431 Longworth HOB,202-225-2711,(202)
225-7856,304-925-5964,http://www.house.gov/writerep/,http://www.house.gov/capito/
WV03,Rahall II,Nick J.,D,H,2307 Rayburn HOB,202-225-3452,(202)
225-9061,304-252-5000,nrahall@mail.house.gov,http://www.house.gov/rahall/
WVJR,Rockefeller,Jay,D,S,531 Hart SOB,202-224-6472,(202)
224-7665,304-347-5372,senator@rockefeller.senate.gov,http://rockefeller.senate.gov/
WVSR,Byrd,Robert,D,S,311 Hart SOB,202-224-3954,(202)
228-0002,304-342-5855,senator_byrd@byrd.senate.gov,http://byrd.senate.gov/
WY00,Cubin,Barbara,R,H,1114 Longworth HOB,202-225-2311,(202)
225-3057,307-261-6595,Barbara.Cubin@mail.house.gov,http://www.house.gov/cubin/
WYJR,Enzi,Michael,R,S,290 Russell SOB,202-224-3424,(202)
228-0359,307-261-6572,senator@enzi.senate.gov,http://enzi.senate.gov/
WYSR,Thomas,Craig,R,S,109 Hart SOB,202-224-6441,(202)
224-1724,307-261-5172,craig@thomas.senate.gov,http://thomas.senate.gov/
,,,,,HOB = House Office Building,,,,,

,,,,,SOB = Senate Office Building,,,,,


Tip/Trick Netscape Internet Explorer Opera
Open Browser in
new window so you
Right click link then
don't have to use the RIGHT click link then left Right click link then left
left click "open link in
back button and wait click "open in new window" click "open in new window"
new window"
for the web page to
load again
Save file directly to

disk so you don't RIGHT click link then RIGHT click link then left
RIGHT click link then left
have to wait for it to left click "save target click "save link document
click "save link as"
load up in your as" as"
browser
Next to "save in" (at

Next to "save in" (at top) Next to "save in" (at top)
Save files to the top) click the square
click the square box with click the square box with
Desktop. Therefore, box with the little
the little arrow and click the little arrow and click
they are EASY to arrow and click
"Desktop" (at top of the "Desktop" (at top of the
find. "Desktop" (at top of
list). list).
the list).
http://www.eddiekahn.com/Tips&Tricks.htm (1 of 2) [1/13/2004 8:13:01 PM]

Double click the my

Clean out internet
computer icon (on your
files (cache) to make
Click "Edit" menu, then desktop), double click
your computer run a Click "File" menu, then
click "preferences" then "C", double click
little smoother and click "preferences" then
double click "advanced", "windows" folder,
ensure you are click "History and cache"
then click "cache", then double click
seeing the newest then click "empty now"
click "clear disk cache" "temporary internet
versions of web
files" folder and delete
pages.
its contents.
Make the text in a Click the "View" Menu Click the "View" Menu ???
browser larger. then click "Increase Font" then point to "Text
Size" then click the size
you want.
http://www.eddiekahn.com/Tips&Tricks.htm (2 of 2) [1/13/2004 8:13:01 PM]

Open letter to IRS Commissioner Charles

Rossotti & Attorney General John
Ashcroft
This is a open letter of invitation for IRS
Commissioner Charles Rossotti and Attorney
General John Ashcroft to attend the upcoming
Houston seminar (4-6-2002) and any further
seminars should they desire to verify these
statement that Eddie makes regarding taxes.
icon below.
http://www.eddiekahn.com/open_letter_to_irs_commissioner_.htm [1/13/2004 8:13:01 PM]

OPEN LETTER TO CHARLES ROSSOTTI, COMMISSIONER OF INTERNAL REVENUE AND JOHN
ASHCROFT, UNITED STATES ATTORNEY GENERAL
March 29,2002
Dear Sirs:
Numerous people have called me in the past few weeks stating that IRS agents have contacted them and said
they were investigating American Rights Litigators and Eddie Kahn.
I do not understand why you are sending agents out getting third hand information when you could be coming
to me and getting first hand information. On June 22, 1998, I sent a letter to Mr. Rossotti, explaining to him
that I was a Tax Law researcher. I told him that I did Seminars, both Domestically and Internationally,
explaining to the participants the results of the research I had done on their Income Tax laws. I have done this
for a number of years for Australians, New Zealanders and Americans. A copy of the letter is enclosed.
In the letter I told Mr. Rossotti that I wanted to be sure that whatever information I was giving out in the
seminars was accurate. To assure this, I asked him to come to one of my Seminars or send a delegate. I wanted
that person to rebut anything that was not factual by use of documents that proved the IRS’ viewpoint was
correct. The primary purpose was not to get into a debate, but rather to clear up any misunderstanding regarding
Income Tax laws. I received a response to the letter from the IRS Jacksonville, Florida office. They said they
could not attend an upcoming Seminar. I wrote them back assuring them that the invitation was an open one
for future seminars as well. All the delegate needed to do was give me their name and they would be comped
into the Seminar.
Since that time, I have only heard from the IRS once regarding the invitation. That was about two years ago. A
man who identified himself as a Criminal Investigation Division agent called while I was out of the country and
said he would like to come to the upcoming New Jersey seminar. Interestingly enough, a woman who identified
herself as an Assistant U.S. Attorney also called and said she would like to attend the same seminar. They both
left phone numbers to call them back on my return to the States. I called and left messages, which were never
returned. I asked at the Seminar if anyone from the IRS or Justice Department was in attendance and received
no response so I assume they were not present.
This letter is again extending an open invitation to Commissioner Rossotti and Attorney General Ashcroft to
send a delegate to my upcoming seminar in Houston, Texas on April 6, 2002. If you are concerned, as you
seem to be, that I am disseminating false and/or misleading information, this is an opportunity to set the record
straight. I will be glad to publicly apologize if I am wrong, as my desire is to find and share the Truth.
Sincerely,
Eddie Kahn
32504 Wekiva Pine Blvd.
Sorrento, Florida 32776
Taking "Enforcement Actions" using

Nonenforcement Pocket Commissions
In this article you see IRS claims to take enforcement actions. My [John Turner, ex IRS agent] comments about this post
have to do with nonenforcement pocket commissions as related to this issue.
For this type of "enforcement actions" people should know it will involve revenue officers (collectors) and revenue
agents (auditors), and all of them have nonenforcement pocket commissions.
IRS considers the use of a summons to be a form of enforcement action. A Notice of Levy, a Levy, a Seizure and sale, a
Notice of Federal Tax Lien (NFTL), all are considered to be "enforcement actions". IRS allows its employees to make a
"dummy" tax return if you don't voluntarily file one. The courts up held (I love it when we get to use that phrase) that
dummy returns are not valid or legal returns. Yet they have devised a slick process, a program, not based on law but
appears to be based on law, to make a return, then get the tax assessed, then take "enforcement actions" to take your
property. They consider that process, too, "enforcement".
IRS will say these types of actions are administrative enforcement, not the "other" type of enforcement. The "other" type
is in regard to criminal investigations and Special Agents from CID. Those employees carry enforcement pocket
commissions and do such things as making arrests and using deadly force if necessary. Sometimes they seize property
that has allegedly been used in commission of, or aiding the commission of a crime. Their commissions are issued by
the enforcement wing of the Treasury Department.
The nonenforcement pocket commission is issued to the "enforcement agents", Revenue Officers and Revenue Agents
among others, who take "enforcement actions" for the purpose of collecting delinquent taxes. Yet, IRS says their
enforcement powers are administrative. We knew that!
They have given RO's and RA's nonenforcement commissions because they do not have authority to take any
enforcement actions, yet they continually tell the public, as evidenced by this article, that their agents take "enforcement
actions", and they continue to be allowed to get away with seizures of private property, which reinforces the public's
belief that they have the authority to take such "enforcement actions".
The time has come for people to tell Congress they will no longer tolerate the taking of their property by the IRS without
due process of law.
If they can pass an income tax law that is constitutional and required for those of us who work for a living that might be
different. We do have a constitutional income tax law. (Hint: it is constitutional because it is not required for most of
us. The day that they make it actually required for people working for a living is the day it will become
http://www.eddiekahn.com/taking_enforcement_actions.htm (1 of 3) [1/13/2004 8:13:01 PM]

unconstitutional) Problem is, we also have an agency "enforcing" that law using unconstitutional means. The courts
allow it. So does the public! When will the public say "enough is enough"? If they want to take property to force the
payment of delinquent income tax then they can go through the legal hoops like all other creditors in this country. That
is called due process of law.
The constitution tells us what the government must do in order to lawfully take our property. Then the IRC seems to
indicate that the IRS can bypass the constitution and due process and take your property. That is not possible. The IRC
cannot overrule the U.S. Constitution. But in practice, the IRC has been interpreted as if it is the higher, the superior law
in this respect.
The truth is, the IRC does not usurp our supreme law of the land. It is just enforced as if it is superior. That is why IRS
agents, "enforcing" civil statutes for payment of income tax, are issued nonenforcement commissions: the IRS really
does understand the lack of true authority they give to the agents. The agents have no idea. The agents need to learn.
Time to "Just Say No!" to agents missapplying the law to steal our property, a law that doesn't apply to most of us just
making a living. All of this misapplication has been allowed because of the premise that the State has a compelling
need not to have to experience delays in the collection of its revenue. What they have done in their justification and
misapplication is bypass due process. Well, I am all for the government being able to expeditiously collect all revenue
that it is legally entitled to. But I cannot support the bastardization of our Constitution by our government wanting to
illegally collect a revenue that is not even truly due from most of the people involved. How about this: how about the
American people waking up to the notion that we the people, as INDIVIDUALS, have a compelling need to KEEP our
hard-earned fruits of our labor and will not allow the government to STEAL it?
There are plenty of opportunities for our government to collect revenue it needs without using deception against its
people. The government knows how to collect revenue without stealing it from us. They also know how to do it in such
a way to protect its compelling need to avoid delay in obtaining the revenue. But that would mean giving up the control
they have on individual citizens via the federal income tax. It is time for Americans to tell Congress that WE will protect
our compelling needs. We will no longer be lied to and deceived about the truth of the income tax system. We will no
longer tolerate a delay of OUR revenue because of illegal withholding from our paychecks. We will no longer allow IRS
to steal our property through illegal seizures because our compelling needs as individuals is protected by the supreme law
of the land.
Nonenforcement pocket commissions are issued because they truly have no enforcement authority over most of us. They
have the appearance of enforcement power.
I believe it is patriotic for citizens and businesses to pay all lawful taxes. I also believe it is a terrible mistake to believe
that the idea of patriotism should be associated with the current system of income taxation. There is so much deception
used in administering the income tax, in tricking IRS employees about what their actual authority is, in fooling citizens to
voluntarily file returns, it is actually just the opposite. It is UNpatriotic to support the current income tax.
IRS to clamp down on tax shelters

Identity of two firms couldn't be confirmed
By Cassell Bryan-Low
THE WALL STREET JOURNAL
July 9 - As part of efforts to clamp down on abusive corporate tax shelters, the Internal Revenue
Service is expected to file enforcement actions against two accounting firms as early as Tuesday or
Wednesday, said several people familiar with the matter.
THE AGENCY HAS stepped up its focus on firms that provide advice to companies on how to
minimize their tax bill. The pressure on so-called tax-shelter promoters is considered an effective means
to identify how widespread the practice is.

The enforcement action - the first of its kind against a promoter - would be to compel each firm to
hand over documents that disclose information about corporations and individuals invested in the tax
shelters, how those vehicles are structured as well as whether they are properly registered.
Under IRS regulations, accountants, investment banks, law firms and other advisers are required to
register tax shelters with the IRS and maintain lists of clients who use them.
The identity of the two firms couldn't be confirmed Monday night.
The enforcement actions would seek to enforce summonses that were issued but produced
disappointing results for the IRS; in general, such a summons is a directive to hand over documents but
the IRS needs to go to court to enforce it.
In taking enforcement action, the IRS would be deploying a powerful legal weapon against accounting
firms and could obtain names of hundreds, and even thousands, of businesses and individuals. One
tax-shelter vehicle can have as many as hundreds of individual and corporate investors, and typically
total tens of millions of dollars but can reach into the billions.
In a speech last month, IRS Chief Counsel B. John Williams said, "My goal here is simple: I want to
interdict the promotion of abusive tax avoidance transactions at the front end. ... To achieve this, we
need to obtain and use a web of information from investors and promoters and aggressively pursue
questionable transactions that we determine are improper."
As of the end of June, the IRS had issued 132 summonses this year to eight accounting and law firms as
well as investment banks. Before this year, the agency had issued only one summons in relation to
promotion of tax shelters; that was last year.
Last month, the IRS announced it had reached a settlement with PricewaterhouseCoopers LLP, the
largest accounting firm, to resolve issues related to the registration of tax shelters and the maintenance
of client lists. PricewaterhouseCoopers didn't admit to or deny wrongdoing but made what the IRS
called "a substantial payment" relating to advice given to clients dating back to 1995.
The moves come at a time when the IRS also has been demanding accountants' work papers when it
finds that the business has used an improper tax shelter.
The IRS won the right in a 1984 Supreme Court decision to obtain such work papers - which are
prepared jointly by companies and their accountants and are a road map to the soft spots - but the power
had been used sparingly. The IRS is hoping the new policy will prompt more disclosure of existing
shelters.
- John D. McKinnon contributed to this article.
You can find this article on the net at: http://www.msnbc.com/news/777906.asp?cp1=1

Two City Rally!
Ex IRS Agents coming out of the closet!!

Below is the information regarding their
"Two City Rally!"
John Turner Joseph Banister Sherry Peel Jackson
Are You A Wage-Slave?

Do your Income Taxes Fund the Country?
Is the Federal Reserve a Federal Agency?
http://www.eddiekahn.com/2_city_rally.htm (1 of 5) [1/13/2004 8:13:02 PM]

Two City Rally!
Come and learn the truth!
Please Join
Joseph Banister, CPA, Ex - IRS CID Special
Agent
Sherry Peel Jackson, CPA, CFE, Ex - IRS
Revenue Agent
John Turner, EA, EX - IRS Revenue Officer
(We The People ( www.givemeliberty.org ) featured them in the February 16th 2001 USA Today
Ad, As well as at the Truth in Taxation Hearing in February 2002)
As We Meet, Greet, Update and Educate
TWO CITY RALLY!

Atlanta, Georgia
Saturday, September 28, 2002 9AM - 4PM
Holiday Inn Airport North

Two City Rally!
1380 Virginia Avenue

Atlanta, Georgia 30334
(Call the hotel at 404-762-8411 for information and
directions)
Oklahoma City, Oklahoma

Saturday, October 12, 2002 9AM - 4PM
Holiday Inn Oklahoma City Airport
2101 South Meridian
Oklahoma City, Oklahoma 73108
(Call the hotel at 800-622-7666 for information and
directions)
Free Materials Available

Books & Videos For Sale
$50 Per Person

We made it affordable so that you can bring guests!

Two City Rally!
Please don't come alone! We can't afford to "Preach only

to the choir". Bring CPA's, Attorneys, IRS Agents &
skeptical friends that need a little more proof!
Deadline for Pre-Registration is:

September 21st for the Atlanta Rally
October 5th, 2002 for the Oklahoma City Rally
There will be a $60 per person donation if registering "at

the door"
8:30 - 9:00 Registration

9:00 - 4:00 Speakers
Lunch on your own from 12pm - 1pm
Topics Will Include:

The true nature of the income tax
(C’mon, how could IRS get away with misapplying the law?)
Our experience as IRS Agents

Two City Rally!
(Do agents know about the fraud all the while?)
How to properly articulate the tax issue to friends

(You mean you get glazed-over looks when telling friends IRS is doing it
wrong?)
Update on We The People Foundation For Constitutional

Education, Inc.
("Freedom Drive 2002", Begins November 9th, 2002 at San Francisco, CA)
Building a grass roots organization

(The government has ignored us, grass roots is the only way, one person at a
time)
How has the IRS responded to our questions?

(Are they overly confident or afraid?)
And Much More

Click here for the flyer so you can print it out the registration form
icon below.

Are You A Wage-Slave?
Do your Income Taxes Fund the Country?
Is the Federal Reserve a Federal Agency?
Come and learn the truth!
Please Join
Joseph Banister, CPA, Ex - IRS CID Special Agent
Sherry Peel Jackson, CPA, CFE, Ex - IRS Revenue Agent
John Turner, EA, EX - IRS Revenue Officer
(We The People ( www.givemeliberty.org ) featured them in the February 16th 2001 USA Today Ad, As
well as at the Truth in Taxation Hearing in February 2002)
As We Meet, Greet, Update and Educate

TWO CITY RALLY!
Atlanta, Georgia
Saturday, September 28, 2002 9AM - 4PM
Holiday Inn Airport North
1380 Virginia Avenue
Atlanta, Georgia 30334
(Call the hotel at 404-762-8411 for information and directions)
Oklahoma City, Oklahoma
Saturday, October 12, 2002 9AM - 4PM
Holiday Inn Oklahoma City Airport
2101 South Meridian
Oklahoma City, Oklahoma 73108
(Call the hotel at 800-622-7666 for information and directions)
Free Materials Available
Books & Videos For Sale
$50 Per Person
We made it affordable so that you can bring guests!
Please don't come alone! We can't afford to "Preach only to the choir”. Bring
CPA's, Attorneys, IRS Agents & skeptical friends that need a little more proof!
Deadline for Pre-Registration is:
September 21st for the Atlanta Rally
October 5 th, 2002 for the Oklahoma City Rally
There will be a $60 per person donation if registering “at the door”
8:30 - 9:00 Registration
9:00 - 4:00 Speakers
Lunch on your own from 12pm - 1pm
Topics Will Include:
The true nature of the income tax
(C’mon, how could IRS get away with misapplying the law?)
Our experience as IRS Agents
(Do agents know about the fraud all the while?)
How to properly articulate the tax issue to friends
(You mean you get glazed-over looks when telling friends IRS is doing it wrong?)
Update on We The People Foundation For Constitutional Education, Inc.
(“Freedom Drive 2002”, Begins November 9th, 2002 at San Francisco, CA)
Building a grass roots organization
(The government has ignored us, grass roots is the only way, one person at a time)
How has the IRS responded to our questions?
(Are they overly confident or afraid?)
And Much More
*Book rooms directly through the hotels at the discounted rate of $69 in Atlanta thru 9/13,
and $69 in OKC thru 9/26. Mention that you're with the “Ex-IRS Agents” Group.
_______________________________________________________________________________________________________________________________________
Name _______________________________________________City attending_________________________

Address _________________________________________________________________________________
Phone ___________________Fax_____________________E-mail__________________________________
Number attending ___________________________Amount enclosed________________________________
Full names of other attendees______________________________________________________________
_________________________________________________________________________________________
MAKE & SEND PAYMENTS TO: Sherry Jackson, P.O. Box 460, Redan, Georgia 30074.
770-981-7758
NO VIDEO TAPING, AUDIO TAPING OR FLASH PHOTOGRAPHY
MONEY ORDERS AND CERTIFIED CHECKS ONLY
NO CHILDREN PLEASE
112C Letter
112C Letter
112C Letter - The 112C Letter is a letter sent by the Internal Revenue
Service explaining IF YOU ARE NOT REQUIRED TO FILE A RETURN
for the type of tax and particular tax period then you will simply write
"Not Liable" across the form sign and date the form then return the
form.
Too utilize this type of request for refund for money already paid, a
person must believe that they are not liable for the particular tax and
are not required to file the particular form listed on the letter.
The IRS letter also states that if you ARE required to file a return you
must file a clam for refund with in three years. There is no time
limitation, that we could find, if you are filing a "Not Liable" request
for refund.
icon below.
http://www.eddiekahn.com/SAMPLE/112c_letter.htm [1/13/2004 8:13:02 PM]

ATTACH TO IRS FORM 1040 "NOT LIABLE"
" NOT LIABLE "
" NOT LIABLE "
911 - Taxpayers Assistance Order
Taxpayer Assistance Order Form

This page consist of three different documents. These documents are in Acrobat Reader format.
Please be sure to have Acrobat Reader installed before reading these documents.
Form 911 - This is the 911 Taxpayer Assistance Order Form.
911 Instructions - This is the instructions for the 911 Form
Form 433a - This is the Collection Information Statement for Individuals that should be filed with
the 911 form.
icon below.
http://www.eddiekahn.com/SAMPLE/911.htm [1/13/2004 8:13:03 PM]

OMB No. 1545-1504
Department of the Treasury - Internal Revenue Service If sending Form 911
Form 911 Application for Taxpayer Assistance Order (ATAO) with another form or
letter, put Form 911
(Rev. January 1997) (Taxpayer’s Application for Relief from Hardship) on top.
Note: If you have not tried to obtain relief from the IRS office that contacted you, use of this form may not be necessary. Use this form only after read-
ing the instructions for When To Use This Form. Filing this application may affect the statutory period of limitations. (See instructions for line 14.)
Section I. Taxpayer Information

1. Name(s) as shown on tax return 2. Your Social Security Number 4. Tax form
3. Social Security of Spouse Shown in 1. 5. Tax period ended
6.Current mailing address (number & street). For P.O. Box, see instuctions Apt. No. 8. Employer identification number, if applicable.
7. City, town or post office, state and ZIP Code 9. Person to contact
If the above address is different from that shown on lastest filed tax return and you 10. Daytime telephone number 11. Best time to call
want us to update our records with this new address, check here....... ( )
12. Description of significant hardship (If more space is needed, attach additional sheets.)
A
T
13. Description of relief requested (If more space is needed, attach additional sheets.)
A
14. Signature of taxpayer or Corporate Officer. 15. Date 16. Signature of spouse shown in block 1
O
17. Date
(See instructions.)
Section II. Representative Information (If applicable)

18. Name of authorized representative (Must be same as on Form 2848 or 8821) 22. Firm name
19. Centralized Authorization File (CAF) number 23. Mailing address
20. Daytime telephone number 21. Best time to call
24. Representative Signature 25. Date
Section III. (For Internal Revenue Service only)

26. Name of initiating employee 27. 28. Telephone 29. Function 30. Office 31. Date
IRS Identified
Taxpayer request ( )
ATAO Code How received Date of Detemination PRO signature
Cat. No. 16965S

Form 911 (Rev. 1-97)
Instructions
When To Use This Form: Use this form to apply for relief from a significant hardship which may have already occurred or is about to
occur if the IRS takes or fails to take certain actions. A significant hardship normally means not being able to provide the necessities of
life for you or your family. Examples of such necessities include, but are not limited to: food, shelter, clothing, or medical care. You may
use this form at any time. Instead of using this form, however, the IRS prefers that requests for relief first be made with the IRS
office that most recently contacted you. In most cases, the relief needed can be secured directly from the appropriate IRS employee.
For example, Collection employees handle requests for payment arrangements on late taxes or releases of levy on wages, salaries, or
bank accounts; Customer Service employees handle requests for immediate refunds of overpaid taxes; Examination employees handle
requests for review of additional tax assessments when the taxpayer has had no opportunity to present proof of claimed deductions.
If an IRS office will not grant the relief requested, or will not grant the relief in time to avoid the significant hardship, you may submit this
form. No enforcement action will be taken while we are reviewing your application.
Note: Do not use this application to change the amount of any tax you owe. If you disagree with the amount of tax assessed, see
Publication 1, Your Rights as a Taxpayer.
Where To Submit This Form: Submit this application to the Internal Revenue Service, Problem Resolution Office, in the district where you live. For
the address of the Problem Resolution Office in your district or for more information, call the local Taxpayer Assistance number in your local tele-
phone directory or 1-800-829-1040.
Overseas Taxpayers: Taxpayers residing overseas should submit this application to the Internal Revenue Service., Problem Resolution Office,
Assistant Commissioner (International), P.O. Box 44817, L’Enfant Plaza Station, Washington, D.C. 20026-4817.
Caution: Incomplete applications or applications submitted to the incorrect office may result in delays. If you do not hear from us within one week of
submitting Form 911, please contact the Problem Resolution Office where you sent your application.
1. Name(s) as shown on tax return. Enter your name as it appeared on the tax return for each period you are asking for help even if your name has
changed since the return was submitted. If you filed a joint return, enter both names.
4. Tax form. Enter the tax form number of the form for which you are requesting assistance. For example, if you are requesting assistance for a
problem involving an individual income tax return, enter “1040.” If your problem involves more than one tax form, include the information in block 12.
5. Tax period ended. If you are requesting assistance on an annually filed return, enter the calendar year or the ending date of the fiscal year for
that return. If the problem concerns a return filed quarterly, enter the ending date of the quarter involved. File only one Form 911 even if multiple tax
periods are involved. If the problem involves more than one tax period, include the information in block 12.
6. Current mailing address (number and street). If your post office does not deliver mail to your street address and you have a P.O. box, show your box
number instead of your street address.
8. Employer Identification Number. Enter the employer identification number (EIN) of the business, corporation, trust, etc., for the name you
showed in block 1.
9. Person to contact. Enter the name of the person to contact about the problem. In the case of businesses, corporations, trusts, estates, etc., enter
the name of a responsible official.
10. Daytime telephone number. Enter the daytime telephone number, including area code, of the person to contact.
12. Description of significant hardship. Describe the action(s) being taken (or not being taken) by the Internal Revenue Service that are causing
you significant hardship. If you know it, include the name of the person, office, telephone number, and/or address of the last contact you had with IRS
regarding this problem.
13. Description of relief requested. Be specific. If your remaining income after paying expenses is too little to meet an IRS payment, give the
details. Describe the action you want the IRS to take.
14. and 16. Signature(s) If you filed a joint return it is not necessary for both you and your spouse to sign this application for your account to be
reviewed. If you sign the application the IRS may suspend applicable statutory periods of limitations for the assessment of additional taxes and for the
collection of taxes. If the taxpayer is your dependent child who cannot sign this application because of age, or someone incapable of signing the
application because of some other reason, you may sign the taxpayer’s name in the space provided followed by the words “By (your signature), par-
ent (or guardian),” If the application is being made for other than the individual taxpayer, a person having authority to sign the return should sign this
form. Enter the date Form 911 is signed.
Section II. Representative Information

Taxpayers: If you wish to have a representative act in your behalf, you must give your representative power of attorney or tax information authorization for
the tax form(s) and period(s) involved. (See Form 2848, Power of Attorney and Declaration of Representative and Instructions, or Form 8821, Tax
Information Authorization, for more information.)
Representatives: If you are an authorized representative submitting this request on behalf of the taxpayer identified in Section I, complete blocks 18
through 25, attach a copy of Form 2848, Form 8821, or the power of attorney. Enter your Centralized Authorization File (CAF) number in block 19. The
CAF number is the unique number that Internal Revenue Service assigns to a representative after a valid Form 2848 or Form 8821 is filed with an
IRS office.
Paperwork Reduction Act Notice: We ask for the information on this form to carry out the Internal Revenue laws of the United States. Your response is
voluntary. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any
Internal Revenue law. Generally, tax returns and return information are confidential, as required by Code section 6103. The time needed to complete this form will
vary depending on individual circumstances. The estimated average time is 30 minutes. If you have comments concerning the accuracy of this time estimate or
suggestions for making this form simpler, we would be happy to hear from you. You can write to the Internal Revenue Service, Attention: Tax Forms Committee, Western Area
Distribution Center, Rancho Cordova,CA 95743-0001. Do not send this form to this address. Instead, see Where To Submit This Form above.
Cat No. 16965S

Form 911(Rev. 1-97)
Instructions
When To Use This Form: Use this form to apply for relief from a significant hardship which may have already occurred or is about to
occur if the IRS takes or fails to take certain actions. A significant hardship normally means not being able to provide the necessities of
life for you or your family. Examples of such necessities include, but are not limited to: food, shelter, clothing, or medical care. You may
use this form at any time. Instead of using this form, however, the IRS prefers that requests for relief first be made with the IRS
office that most recently contacted you. In most cases, the relief needed can be secured directly from the appropriate IRS employee.
For example, Collection employees handle requests for payment arrangements on late taxes or releases of levy on wages, salaries, or
bank accounts; Customer Service employees handle requests for immediate refunds of overpaid taxes; Examination employees handle
requests for review of additional tax assessments when the taxpayer has had no opportunity to present proof of claimed deductions.
If an IRS office will not grant the relief requested, or will not grant the relief in time to avoid the significant hardship, you may submit this
form. No enforcement action will be taken while we are reviewing your application.
Note: Do not use this application to change the amount of any tax you owe. If you disagree with the amount of tax assessed, see
Publication 1, Your Rights as a Taxpayer.
Where To Submit This Form: Submit this application to the Internal Revenue Service, Problem Resolution Office, in the district where you live. For
the address of the Problem Resolution Office in your district or for more information, call the local Taxpayer Assistance number in your local tele-
phone directory or 1-800-829-1040.
Overseas Taxpayers: Taxpayers residing overseas should submit this application to the Internal Revenue Service., Problem Resolution Office,
Assistant Commissioner (International), P.O. Box 44817, L’Enfant Plaza Station, Washington, D.C. 20026-4817.
Caution: Incomplete applications or applications submitted to the incorrect office may result in delays. If you do not hear from us within one week of
submitting Form 911, please contact the Problem Resolution Office where you sent your application.
1. Name(s) as shown on tax return. Enter your name as it appeared on the tax return for each period you are asking for help even if your name has
changed since the return was submitted. If you filed a joint return, enter both names.
4. Tax form. Enter the tax form number of the form for which you are requesting assistance. For example, if you are requesting assistance for a
problem involving an individual income tax return, enter “1040.” If your problem involves more than one tax form, include the information in block 12.
5. Tax period ended. If you are requesting assistance on an annually filed return, enter the calendar year or the ending date of the fiscal year for
that return. If the problem concerns a return filed quarterly, enter the ending date of the quarter involved. File only one Form 911 even if multiple tax
periods are involved. If the problem involves more than one tax period, include the information in block 12.
6. Current mailing address (number and street). If your post office does not deliver mail to your street address and you have a P.O. box, show your box
number instead of your street address.
8. Employer Identification Number. Enter the employer identification number (EIN) of the business, corporation, trust, etc., for the name you
showed in block 1.
9. Person to contact. Enter the name of the person to contact about the problem. In the case of businesses, corporations, trusts, estates, etc., enter
the name of a responsible official.
10. Daytime telephone number. Enter the daytime telephone number, including area code, of the person to contact.
12. Description of significant hardship. Describe the action(s) being taken (or not being taken) by the Internal Revenue Service that are causing
you significant hardship. If you know it, include the name of the person, office, telephone number, and/or address of the last contact you had with IRS
regarding this problem.
13. Description of relief requested. Be specific. If your remaining income after paying expenses is too little to meet an IRS payment, give the
details. Describe the action you want the IRS to take.
14. and 16. Signature(s) If you filed a joint return it is not necessary for both you and your spouse to sign this application for your account to be
reviewed. If you sign the application the IRS may suspend applicable statutory periods of limitations for the assessment of additional taxes and for the
collection of taxes. If the taxpayer is your dependent child who cannot sign this application because of age, or someone incapable of signing the
application because of some other reason, you may sign the taxpayer’s name in the space provided followed by the words “By (your signature), par-
ent (or guardian),” If the application is being made for other than the individual taxpayer, a person having authority to sign the return should sign this
form. Enter the date Form 911 is signed.
Section II. Representative Information

Taxpayers: If you wish to have a representative act in your behalf, you must give your representative power of attorney or tax information authorization for
the tax form(s) and period(s) involved. (See Form 2848, Power of Attorney and Declaration of Representative and Instructions, or Form 8821, Tax
Information Authorization, for more information.)
Representatives: If you are an authorized representative submitting this request on behalf of the taxpayer identified in Section I, complete blocks 18
through 25, attach a copy of Form 2848, Form 8821, or the power of attorney. Enter your Centralized Authorization File (CAF) number in block 19. The
CAF number is the unique number that Internal Revenue Service assigns to a representative after a valid Form 2848 or Form 8821 is filed with an
IRS office.
Paperwork Reduction Act Notice: We ask for the information on this form to carry out the Internal Revenue laws of the United States. Your response is
voluntary. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any
Internal Revenue law. Generally, tax returns and return information are confidential, as required by Code section 6103. The time needed to complete this form will
vary depending on individual circumstances. The estimated average time is 30 minutes. If you have comments concerning the accuracy of this time estimate or
suggestions for making this form simpler, we would be happy to hear from you. You can write to the Internal Revenue Service, Attention: Tax Forms Committee, Western Area
Distribution Center, Rancho Cordova,CA 95743-0001. Do not send this form to this address. Instead, see Where To Submit This Form above.
Cat No. 16965S

Form 911(Rev. 1-97)
Form 433-A
(Rev. September 1995) Collection Information Statement for Individuals
Department of the Treasury
Internal Revenue Service
Note: Complete all blocks, except shaded areas. Write “N/A” (not applicable) in those blocks that do not apply.
Instructions for certain line items are in Publication 1854.
1 Taxpayer(s) name(s) and address 2 Home phone number 3 Marital status
( )
4a Taxpayer’s social security number 4b Spouse’s social security number
County
Section I Employment Information

5 Taxpayer’s employer or business a How long employed b Business phone number c Occupation
(name and address)
( )
d Number of exemptions e Pay period: Weekly Bi-weekly f (Check appropriate box)

claimed on Form W-4
Monthly Wage earner
Sole proprietor
Payday: (Mon–Sun) Partner
6 Spouse’s employer or business a How long employed b Business phone number c Occupation
(name and address)
( )
d Number of exemptions e Pay period: Weekly Bi-weekly f (Check appropriate box)

claimed on Form W-4
Monthly Wage earner
Sole proprietor
Payday: (Mon–Sun) Partner
Section II Personal Information

7 Name, address and telephone number of 8 Other names or aliases 9 Previous address(es)
next of kin or other reference
10 Age and relationship of dependents living in your household (exclude yourself and spouse)
11 Date a Taxpayer b Spouse 12 Latest filed income a Number of exemptions b Adjusted Gross Income
of
Birth
© tax return (tax year) claimed
Section III General Financial Information
13 Bank accounts (include savings and loans, credit unions, IRA and retirement plans, certificates of deposit, etc.) Enter bank loans in item 28.
Name of Institution Address Type of Account Account No. Balance
Total (Enter in item 21) ©
Cat. No. 20312N Form 433-A (Rev. 9-95)

Form 433-A (Rev. 9-95) Page 2
Section III (continued) General Financial Information
14 Charge cards and lines of credit from banks, credit unions, and savings and loans. List all other charge accounts in item 28.
Type of Account Name and Address of Monthly Credit Amount Credit

or Card Financial Institution Payment Limit Owed Available
Totals (Enter in item 27) ©

15 Safe deposit boxes rented or accessed (List all locations, box numbers, and contents)
16 Real Property (Brief description and type of ownership) Physical Address
County
b
County
c
County
17 Life Insurance (Name of Company) Policy Number Type Face Amount Available Loan Value
Whole
Term
Whole
Term
Whole
Term
Total (Enter in item 23) ©

18 Securities (stocks, bonds, mutual funds, money market funds, government securities, etc.):
Quantity or Current Where Owner

Kind
Denomination Value Located of Record
19 Other information relating to your financial condition. If you check the “Yes” box, please give dates and explain on page 4, Additional
Information or Comments:
a Court proceedings Yes No b Bankruptcies Yes No
d Recent sale or other transfer of assets
c Repossessions Yes No for less than full value Yes No
f Participant or beneficiary
e Anticipated increase in income Yes No to trust, estate, profit sharing, etc. Yes No
Section IV Assets and Liabilities
Current Current Equity Amount of Date of

Name and Address of Date
Description Market Amount in Monthly Final
Lien/Note Holder/Lender Pledged
Value Owed Asset Payment Payment
20 Cash
21 Bank accounts (from item 13)
22 Securities (from item 18)
23 Cash or loan value of insurance
24 Vehicles (model, year, license, tag #)
c
25 Real a
property
(from b
Section III,
item 16) c
26 Other assets
27 Bank revolving credit (from item 14)

28 Other a
liabilities
(including b
bank
loans, c
judgments,
notes, and d
charge
accounts e
not
entered f
in
item 13) g
29 Federal taxes owed (prior years)

$ $
30 Totals
Internal Revenue Service Use Only Below This Line
Financial Verification/Analysis
Date Information or Date Property Estimated Forced
Item
Encumbrance Verified Inspected Sale Equity
Personal residence
Other real property
Vehicles
Other personal property
State employment (husband and wife)
Income tax return
Wage statements (husband and wife)
Sources of income/credit (D&B report)
Expenses
Other assets/liabilities
Section V Monthly Income and Expense Analysis
Total Income Necessary Living Expenses

Source Gross Claimed (IRS use only) Allowed
1
31 Wages/salaries (taxpayer) $ 42 National Standard Expenses $ $
2
32 Wages/salaries (spouse) 43 Housing and utilities
3
33 Interest, dividends 44 Transportation
34 Net business income
from Form 433-B) 45 Health care
35 Rental income 46 Taxes (income and FICA)
36 Pension (taxpayer) 47 Court ordered payments
37 Pension (spouse) 48 Child/dependent care
38 Child support 49 Life insurance

50 Secured or legally-perfected
39 Alimony debts (specify)
40 Other 51 Other expenses (specify)
41 Total income $ 52 Total expenses $ $
53 (IRS use only) Net difference $

(income less necessary living
expenses)
Certification Under penalties of perjury, I declare that to the best of my knowledge and belief this statement of assets, liabilities,
and other information is true, correct, and complete.
54 Your signature 55 Spouse’s signature (if joint return was filed) 56 Date
Notes
1 Clothing and clothing services, food, housekeeping supplies, personal care products and services, and miscellaneous.
2 Rent or mortgage payment for the taxpayer’s principal residence. Add the average monthly payment for the following expenses if they are
not included in the rent or mortgage payment: property taxes, homeowner’s or renter’s insurance, parking, necessary maintenance and
repair, homeowner dues, condominium fees and utilities. Utilities include gas, electricity, water, fuel oil, coal, bottled gas, trash and garbage
collection, wood and other fuels, septic cleaning, and telephone.
3 Lease or purchase payments, insurance, registration fees, normal maintenance, fuel, public transportation, parking, and tolls.
Additional information or comments:
Internal Revenue Service Use Only Below This Line
Explain any difference between Item 53 and the installment agreement payment amount:
Name of originator and IDRS assignment number: Date

Congressional Letter
Letter to Congressmen Regarding September 11th

Terrorist Acts
The President of the United States has "Declared War" on an unnamed country. Congress had
already voted to give him $40 billion to fight this "War". This act is totally against the
Constitution in article 1 section 8 and other sections.
This is a perfect opportunity to show our "Public Servant's" who they are serving and that we do
not want to go to war against some country to be named later. The terrorist act committed in New
York on September 11, 2001 was just that, a terrorist act and not an act of war. Therefore, a
declaration of war is totally unjustified.
Click HERE for a copy of the letter Eddie sent to his Senators and Congressmen regarding this
matter. It is time for us to tell our public servants what we expect of them and demand that they
do it. If we do not do this we deserve what we get. If you would like to send the same letter to your
Senators and Congressmen download it here (MS Word Version / Adobe Version).
icon below.
http://www.eddiekahn.com/SAMPLE/Congressional_Letter.htm [1/13/2004 8:13:04 PM]

Embedded Secure Document
The file http://www.eddiekahn.com/PDF/DearCongressman_Graham.PDF is a secure document that has
been embedded in this document. Double click the pushpin to view DearCongressman_Graham.PDF.
http://www.eddiekahn.com/PDF/DearCongressman_Graham.PDF [1/13/2004 8:13:04 PM]

Constituent Name
Address
Address
Phone: ( ) _________
Fax: ( ) ___________
Date:
Senator (or Congressman/woman) ____[name]_________

Address
RE: Terrorist attack on the World Trade Center
Dear Senator/Congressman/woman __[name]___________,
I was watching a news program today. President Bush came on and said that the act of ramming the
airplanes into the World Trade Center was not a “terrorist act” but rather an “act of war” of some country as
yet to be identified.
Because of this distinction, he stated that he would be asking for “emergency funding”. Essentially, what he
is asking for is a blank check to fight some unnamed enemy. For Congress to authorize such funding would
be stupid at best and treasonous if any thought were put into it whatsoever.
If you look in the Constitution of the United States of America, Article I Section 8, it states that only
Congress can declare war. If the Constitution is not in full force and effect, please let me know the exact date
this treasonous act occurred. If it is in full force and effect, then do the job that was assigned to you by We
the People. If war should be declared, then you do it. Of course, we will want a full accounting of all the
facts first, as you are not the one who has to go on the front lines and get shot at, but rather the sons and
daughters of good Americans.
It looks to me like everyone up in D.C. is in various states of panic. If that is your state of mind, I would ask
that you resign your position. We do not need people in positions of power who cannot control their
emotions and are not calm in the face of adversity.
This letter is being put on the Internet, faxed, mailed and e-mailed to many Americans. We will all be
watching to see what you do in this situation. If you are a “Public Servant” (as you claim to be at election
time), you will do the will of the Public. If you do not, We will look to recall you for Malfeasance in Office.
Sincerely,
[Constituent signature]
_________________________________
Constituent Name
Sample Documents
Commercial Affidavit - This has be used in lieu of a 1040 tax return.
This letter gives the IRS authority to file a 1040 Form on your behalf. The purpose of this letter is
to force the IRS to fill out and sign the 1040 Form on your behalf, under penalty of perjury as
required by their own regulations and the Internal Revenue Code. We have been told by a former
IRS Agent that no one in the IRS will fill this out for two reasons: 1) They have no delegated
authority to do so or 2) The agent would be personally liable for the contents on the form, just as
you would be, since he is stating under penalty of perjury that it is true, correct and complete. As
far as we know, no one in the IRS has first hand knowledge of anyone's personal IRS account
being true correct and complete. In our opinion, by doing this you are eliminating willful failure to
file a tax return and tax evasion.
Letter to Congressmen Regarding September 11th Terrorist Acts - The President of the United
States has "Declared War" on an unnamed country. Congress had already voted to give him $40
billion to fight this "War". This act is totally against the Constitution in article 1 section 8 and
other sections.
Privacy Act Request - Use this document to request copies of records that an agency may have on
you in their files. Page 2 of this sample is now a fill-in form. (Adobe Acrobat format)
Freedom of Information Act Request - Use this document to request copies of documents that
would pertain to the public at large. (Adobe Acrobat format)
Public Servant Questionnaire - Document that can be used to determine whether the questions a
public servant is asking you are voluntary or mandatory and what they plan to do with it if you
give it to them, who gets to see it, etc. (Adobe Acrobat format)
W-4 Letter - Letter to attach to W-4 for employment purposes. (Adobe Acrobat format)
W-9 Letter - Letter on use of SSN for other purposes than those regulated. (Adobe Acrobat
format)
http://www.eddiekahn.com/SAMPLE/document-Sample.htm (1 of 2) [1/13/2004 8:13:05 PM]

Sample Documents
911 and 433A - Taxpayers Assistance Order - Documents that you can use if the IRS is making you
destitute by garnishment or levy. (Adobe Acrobat format)
IRS Agent Combs Letter - Questions to ask IRS agents to determine if they are acting in their
bounds of authority. (Adobe Acrobat format)
The Determination Letter - This sample letter asks for the IRS to determine if your status is a
Individual Income Tax payer.
112C Letter - If you are not required to file a return for the type of tax and particular tax period
then you will simply write "Not Liable" across the form
icon below.
http://www.eddiekahn.com/SAMPLE/document-Sample.htm (2 of 2) [1/13/2004 8:13:05 PM]

COMMERCIAL AFFIDAVIT
State of Florida )
County of Lake )
To Respondent:
District Director and Technical Support Manager
Internal Revenue Service Delivery Confirmation Number: This has been blacked out
400 West Bay Street
Jacksonville, Florida 32202
SS# This has been blacked out
(
This Affidavit supersedes any and all previous documents filed with the Internal Revenue Service for calendar
year 2001. The Undersigned Affiant, Eddie Ray Kahn – Secured Party, hereinafter “Affiant” does solemnly swear, declare
and state as follows:
1. Affiant is competent to state to the matters set forth herein.
/
2. Affiant has personal knowledge of the facts stated herein.
3. All the facts stated herein are true, correct, and complete, admissible as evidence, and if called upon as a witness,
Affiant will testify to their veracity.
3
Plain Statement of Facts
4. Eddie Ray Kahn has received no income in 2001 required to be reported under CFR 1.1-1, in lieu of the forms
approved by the Office of Management and Budget as in the statement requested in the IRS instruction manual.
5. Since no monies were received as income any monies withheld for the year 2001 are to be released to the Secured
Party.
0
6. Therefore, Affiant hereby submits this Commercial Affidavit as the required statement to be filed in lieu of the
forms approved by the Office of Management and Budget and 26 CFR.
Verification
7. The Undersigned Affiant, Eddie Ray Kahn, certifies on Affiant’s commercial liability that Affiant has read this
Affidavit and issues the same with intent and understanding of purpose and does solemnly swear, declare and state
that the statements, allegations, demands and contents contained herein are true, correct, and complete, not
$
misleading, the truth, the whole truth and nothing but the truth.
NOTICE TO THE PRINCIPAL IS NOTICE TO THE AGENTS - NOTICE TO THE AGENT IS NOTICE
TO THE PRINCIPAL
6
You have ten (10) days in which you can respond and rebut this Commercial Affidavit, from receipt, UCC 1-204,
unless you request in writing and extension of time. A lack of response or rebuttal means you assent to this
Commercial Affidavit and that a fault exists, UCC 1-201(16), creating fraud through material misrepresentation
that vitiates all forms, contracts, testimony, agreements, etc. expressed or implied, from the beginning, UCC 1-
103.
Date: Signed
______________________________
Eddie Ray Kahn, Secured Party
c/o This has been blacked out
This has been blacked out
On this day, April 24, 2002, before me, a Notary Public, personally appeared Eddie Ray Kahn, personally
known to me as the living soul whose name is subscribed to this instrument and acknowledge that he
executed the same.
____________________________ Appointment Expires __________________

Notary
Seal/Stamp
The file http://www.eddiekahn.com/PDF/sample/1040_SFR_Request.pdf is a secure document that has
been embedded in this document. Double click the pushpin to view 1040_SFR_Request.pdf.
http://www.eddiekahn.com/PDF/sample/1040_SFR_Request.pdf [1/13/2004 8:13:06 PM]

TO: Internal Revenue Service
District Director
[LOCAL DISTRICT ADDRESS]
FROM: [Your Name]
[Your Address]
[Your City, State and Zip]
SS#
Date:
Certified Return Receipt #
Dear District Director:
This is a request under the Privacy Act, 5 USC 552a and appropriate regulations.
This is my firm promise to pay fees and costs for location, duplication, and reviewing the
documents for information requested below. I am making this request in the
classification of “other requester.” If costs are expected to exceed $00.00, please send
estimate of costs.
If some of this request is exempt from release, please send those portions reasonably
segregable and provide me with indexing, itemization, and detailed justification
concerning the information, which you are not releasing.
I understand the penalties for requesting or obtaining access to documents or records
under false pretenses. I am the person making this request and my signature appears
below.
This request pertains to the years _________ through ______________.
Please send to the requester copies of _____________________________
_____________________________________________________________
_____________________________
[TYPE YOUR NAME HERE]
_____________________________
[NOTARY]
HAVE YOUR SIGNATURE NOTARIZED

Privacy Act Request
To: Internal Revenue Service
District Director
From:
Your SS#:
Date:
Certified Return Receipt #:
1. This is a request under the Privacy Act, 5 USC 552a and appropriate regulations.
2. This is my firm promise to pay fees and costs for location, duplication, and
reviewing the documents for information requested below. I am making this
request in the classification of “other requester.” If costs are expected to exceed
$0.00, please send an estimate of costs.
3. If some of this request is exempt from release, please send those portions
reasonably segregable and provide me with indexing, itemization, and detailed
justification concerning the information, which you are not releasing.
4. I understand the penalties for requesting or obtaining access to documents or

records under false pretenses. I am the person making this request and my
signature appears below.
5. This request pertains to the years ___________through __________.
6. Please send to the requester copies
_________________________________________________________
___________________________________ Seal:
TO: National Office IRS
Director, Office of Disclosure
1111 Constitution Ave. NW
Washington, D.C. 20224-0002
FROM: [Your Name]

[Your Address]
[Your City, State, Zip]
SS#
Date:
Certified Return Receipt #
Dear Director:
1. This is a request under the Freedom of Information Act, 5 USC 552 and
appropriate regulations.
reviewing the documents for information requested below. I am making this
request in the classification of “other requester.” If costs are expected to exceed
$00.00, please send estimate of costs.
reasonably segregable and provide me with indexing, itemization, and detailed
records under false pretenses. I am the person making this request and my
5. This request pertains to the years _________ through ______________.
6. Please send to the requester copies of _____________________________
_____________________________________________________________
_____________________________
[TYPE YOUR NAME HERE]
PUBLIC SERVANT’S QUESTIONNAIRE
The following questions are based upon the UNITED STATES OF AMERICA Constitution and are necessary in order that this
individual may make a reasonable determination concerning divulgence of information to this agency.
1. Name of public servant __________________________ 16. Is this investigation “general?____Or is it special’?

2. Residence address_______________________________ ‘____________________________________
City, State, Zip________________________________
3. Name of department of government, bureau, or
agency by which public servant is employed Note: by ‘general’is meant any kind of blanket
_____________________________________________ investigations in which a number of persons are
_____________________________________________ involved because of geography, type of business,
Supervisor’s name______________________________ income, etc. By ‘special’is meant any investigation
4. It’s mailing address_____________________________ of an individual nature in which others are not
City ________________________________________ involved.
5. Will public servant uphold the U.S. of A.
Constitution? 17. Have you consulted, questioned, interviewed,
Yes No or received information for a third party,
6. Did public servant furnish proof of identity? regulation, which authorizes this investigation?
Yes No relative to this investigation. Yes No
7. What was the nature of proof? I.D. _________________ 18. If yes, the identity of such third parties
No. __________________________________________ _______________________________________
Badge No.____________________________________ 19. Do you reasonably anticipate either a civil or
8. Will public servant furnish a copy of the law or criminal action to be initiated or pursued based
Yes No upon any of the information that you seek?
9. Will the public servant read aloud the portion of Yes No
the law authorizing the questions he will ask? 20. Is there a file of records, information or
Yes No correspondence relating to me being maintained
10. Are the questions to be asked based upon a by this agency? Yes No
specific law or regulations?_______ Or are they 21. Is this agency using any information pertaining to
being used as a discovery process?_________________ me, which was supplied, by another agency or
government?
11. Are the answers voluntary? _____ or mandatory? _____ source? Yes No If Yes,
12. What other uses may be made of this information?
Which?_______________________________________
________________________________________ 22. Will the public servant guarantee that the
13. What other agencies may have access to this information in these files will not be used by
Information?___________________________________ any other department other than the one by whom
_____________________________________________ he is employed? Yes No
14. What will be the effect upon me if I should
choose to not answer any part or all of this
questions?______________________________________
______________________________________________
15. Name of the person in government requesting
that this investigation be made?_____________________
If any request for information about me is received from any person or agency, you must advise me in writing before releasing
such information. Failure to do so may subject you to possible civil or criminal action as provided.
AFFIRMATION BY PUBLIC SERVANT

I swear (or affirm) that the answers I have given to the forgoing questions are complete and correct in every particular.
Signed________________________________________ Print Name:___________________________________
Must be signed in ink and the signature should be witnessed by two people. Citizen may administer an oath if he so desires.
Witness_______________________________________ Witness______________________________________
Print Name____________________________________ Print Name____________________________________
[name of sender]
[address of sender]
[date] Certified Return Receipt Request

#
Human Resources Director
[Company] SUBJECT: W-4 Form
[Address]
[City and State]
Dear [Employer name]:
I am corresponding with you to explain the Withholding Exemption Certificate, Form W -4,
procedural requirements. I am providing Internal Revenue Service (IRS) codes and regulations,
plus an explanation, so you can be comfortable reporting me as exempt from federal tax by
knowing you are operating within the bounds of the law.
The federal regulations concerning withholdingexemption certificates state in part:
26 CFR 31.3402(f)(2)-1. Withholding exemption certificates.
(a) On commencement of employment. On or before the date on which an

individual commences employment with an employer, the individual shall furnish
the employer with a signed withholding exemption certificate… OR if the
statements described in Sec. 3402(n)-1 are true with respect to an individual, he
may furnish his employer with a signed withholding exemption certificate which
contains such statements in lieu of the first mentioned [W-4] certificate.
26 USC § 3402(n)-1,2 states:
(n) Employees incurring no income tax liability.
Not withstanding any other provision of this section, an employer shall not be
required to deduct and withhold any tax under this chapter upon a payment of
wages to an employee if there is in effect with respect to such payment a
withholding exemption certificate (in such form and containing such other
information as the Secretary may prescribe) furnished to the employer by the
employee certifying that the employee – (Emphasis added)
(1) incurred no liability for income tax imposed under Subtitle A for his
preceding taxable year, and
(2) anticipates that he will incur no liability for income tax imposed under
Subtitle A for his current taxable year.
The determination of liability for a non-federal employee rests with that employee.
The employer only has the duty to honor the W-4 or W-4E (Exempt) form as filed by the
employee. Only the employee can determine if there is a tax liability. The employer
has no authority to make a determination concerning the employee’s tax liability.
The withholding process is strictly between the employer and the employee. The use of
IRS codes and regulations makes it very easy for the employee to determine if there is a
liability for any tax or to determine the applicability of the forms. The W-4 form is
signed under the penalties of perjury by the employee. No alterations or additions to
this form are authorized, except with the explicit permission of the employee. An
unauthorized alteration or addition to this Employee’s Withholding Allowance
Certificate, Form W-4, is an act of forgery by the employer, defined by Black’s Law
Dictionary as “… to fraudulently alter a genuine instrument to another’s prejudice”. If this
act should occur we will advise our client to contact the proper authorities. The federal
regulation states:
26 CFR 31.3402(f)(5)-1. Form and contents of withholding exemption certificate.
(b) Invalid Form W-4. A Form W-4 does not meet the requirements of
section 3402(f)(5) or this section and is invalid if it contains an alteration or
unauthorized addition. (Emphasis added)
Also, be advised that Internal Revenue Manual 6209, Section 2, “Tax Returns and Forms”,
lists the Forms W-4 and W-4E as Tax Class 5 forms. (See enclosures) Tax class 5 is
listed as Estate and Gift tax, not withholding or income tax. Since the W-4 Form does
not apply to withholding or income tax and I am not liable for an estate or gift tax, this
form does not apply to, and is not required to be used by me for the gathering of this
information. What is the class of tax you are intending to collect from me?
If you have any questions on this matter or if you would like more information, please feel
free to contact me at the above address.
Sincerely,
[name of sender]
Enclosure: IRS Manual 6209, Section 2

«DateResponseSent»
«EmployerName»
«EmployerContact» RE: «ClientName»
«EmployerAddress1»
«EmployerCityStZip» SUBJECT: SSN and W-9 Form
Dear «EmployerContact»:
I have Power of Attorney (POA) for «ClientName» in regards to federal tax matters.
H
«ClientName» asked me to correspond with you regarding the use of a Social Security Number or
TIN and the IRS Forms W-9 and 1099. Unfortunately, these issues are commonly
misunderstood and misused to the detriment of the person being compensated as the various laws
SO
regarding these issues are either unknown or ignored.
Title 5 of the Code of Federal Regulations (CFR), Section 552(a)(1) titled, Disclosure of Social
Security Number, states in part, “It shall be unlawful for any Federal, state or local governmental
agency to deny to any individual any right, benefit or privilege provided by law because of such
P
individual’s refusal to disclose his social security account number…” (Privacy Act of 1974, 88
Stat. 1896, Sec. 7(a)(1)).
Provisions have been made by the government, in their regulations, to account for an employee
6D
who does not use an identifying number. One of these provisions is located at 26 CFR Section
301.6109-1, Identifying numbers. Subsection (c) provides a two-part procedure for an
accountant to use should this situation exist. First, the accountant is to request such number of
the other person. Second, after the requester (accountant) has requested the number and none is
given, he shall sign an affidavit on the transmittal document forwarding such returns, statement
or other documents to the IRS so stating. I have enclosed two sample affidavits and the
regulation for your convenience.
Another concern may be the fear of a $50.00 penalty imposed by Internal Revenue Code (IRC)
Section 6721 for failure to produce an identifying number. However, there is a reasonable cause
provision given in 26 CFR Sec. 301.6724-1(a) which states in part; “…the penalty for a failure
relating to an information reporting requirement is waived if the failure is due to reasonable
cause and is not due to willful neglect”. Also, there is an exception for de minimis failures if the
number of returns are not greater than 10 as per IRC 6721 (c)(2)(A). A reasonable cause in this
instance would be where the employee did not furnish the information to the filer (accountant).
Also, be advised that Internal Revenue Manual 6209, Section 2, “Tax Returns and Forms”,
lists the Forms W-4 and 1099 as Tax Class 5 forms. (See enclosures) Tax class 5 is listed
as an Estate and Gift tax, not as an income or self-employment tax. Since the 1099 Form
does not apply to income or self-employment tax and our client is not liable for an estate or
gift tax, this form does not apply to my client for the gathering of information for tax
purposes. What is the class of tax you intend to report for my client?
The law does not require «ClientName» to offer an identifying number and, therefore, should not
be forced into this situation involuntarily. If I can be of any further assistance please write me at
the above address.
Regards,
Attorney
H
Cc:«ClientName»
Enclosures: 6209 Manual Sec. 2
SSN/W90224 99
26 CFR § 301.6109-1
Sample Affidavits
SO
P
6D
SAMPLE AFFIDAVIT FOR TRANSMITTAL DOCUMENT
Comes now the affiant,__________________________________________, after being duly

cautioned and sworn states as follows:
1. I,____________________________, am an accountant for___________________________.
2. In compliance with 26 CFR § 301.6109-1(2)(c), I requested the social security number

From our employee, ___________________________ on [date].
3. In response to said request no number was made available to me.
H
SO
Signed______________________________________
P
Printed name_______________________________________
Date______________________________
6D
Notary Information
SAMPLE AFFIDAVIT FOR TRANSMITTAL DOCUMENT
I,__________________________________, An accountant for__________________________

Do affirm to the facts noted herein. In compliance with 26 CFR § 301.6109 –1(2)(c), I
Requested the social security number from our employee, ____________________________.
There was no number made available to me so I am including this affidavit with the transmittal
document as per the above regulation.
Signed ____________________________________
H
Printed name _________________________________________
Date ___________________________
SO
Notary Information
P
6D

Currently, the determination letter is on hold. Our client's Power of Attorney have submitted over
80 requests for determination of tax status and have only received 7 responses at this time. All of
the IRS responses stated that they can not give ARL clients a determination of tax status. ARL is
waiting for a few more responses to come in. The Attorney plans to contact and file a complaint
with the Congressional Oversight Committee if the responses are negative.
The request for the initial Determination of Status Letters have been returned from the IRS with
the checks voided. (See the IRS Determination response letter - Click here to view it). The
Determination Letter is currently being revised so there will be no questions regarding the validity
of the Federal Income Tax and other taxes set forth in the code, authority or jurisdiction of the
service to enforce the code or collect information, or similar matters as per their letter. As soon as
the revised Determination Letter is complete, we will post it here. Conclusion: Do not use this
Determination Letter unless you want a similar response.
The current request for Determination of Status Letters (Click Here to view it) was submitted on
June 22, 2001. Do not be surprised if this request gets returned as well. We are of the option that
they do not want to give you a determination of your status. REASON: Based on our research, no
American is liable for Individual Income Tax.
The Determination Letter - This sample letter asks for the IRS to determine if your status is a
Individual Income Tax payer.
A determination letter can also be used for specific transactions or events as well as determination
of status.
This request is made pursuant to Public Law (11)-23 as referenced in the IRS Manual. However,
the Internal Revenue Code (IRC), specifically §6110, references public law 100-203 (1987), which
"...provides the rules for fees for requests for rulings, determinations, and similar letters." This
law can be found in the references at the end of the code section.
The Determination Letter Instructions - This is a 268 page document (please be patient for it to
load). The first 60 pages will give you all the necessary information to construct the request
http://www.eddiekahn.com/SAMPLE/determination_letter.htm (1 of 2) [1/13/2004 8:13:09 PM]

properly.
icon below.
http://www.eddiekahn.com/SAMPLE/determination_letter.htm (2 of 2) [1/13/2004 8:13:09 PM]

Your Letter Head
Date Letter Sent
Internal Revenue Service Certified mail receipt number

Attn: CC:PA:T, Room 6561 SSN/EIN: Your Social Security Number
1111 Constitution Avenue, N.W. Tax Years: Your Tax Years Here
Request for a Determination of Individual Income Tax Status

Dear Sir or Madam,
My request is this:
Please issue a Letter of Determination as to whether or not I was "made liable" for the Individual Income Tax imposed by
(
26 USC §1, for each of the above listed years.
I hereby request a copy of the Findings of Fact and Conclusions of Law that you will use as a basis of your Determination
3/
pursuant to the Administrative Procedures Act, specifically 5 USC 556(d). I ask for the Determination Letter to be sent
within 30 days of the date on this letter. If more time is needed, please make a written request and it will be granted.
Should your Determination be that I have been “made liable” pursuant to 26 USC 6011 for any of the years in question,
this is also a request for a Conference with you pursuant to section 8.02 (7) to discuss your findings.
I have never asked for a Determination or Letter Ruling on these issues, or ones similar to them. I have never asked for a
0
Determination or Letter Ruling and withdrew it before a Determination was issued.
Enclosed is a check for $275.00 paid pursuant to the Schedule of User fees for the requested Determination.
6$
If this is not a proper format for making this request, please send that format with instructions to me. Please respond
within 30 days.
All responses must contain an original signature and must be attested to under penalties of perjury to insure that the
responses provided by you are valid pursuant to 26 USC 6065.
Your Name Goes Here
Enclosure: Check for $275.00
Your address
Your name
Date

Attn: CC:PA:T, Room 6561
1111 Constitution Avenue, N.W.
Attn: Associate Chief Counsel (Income Tax and Accounting)
Written Request for Verified Determination of Status for Individual Income
(
Tax Purposes, Prior to Filing of Tax Returns Pursuant to Public Law (11)-23
3/
Pursuant to Internal Revenue Laws and based upon the facts contained in the attached Statement,
this letter constitutes a written request for an attested, verified Determination Letter from the
Assistant Chief Counsel (Income Tax and Accounting), determining my status for Individual
Income Tax purposes, prior to the filing of any further tax returns. As soon as your agency
makes this written determination, I will file any forms that are required by the laws of the United
States of America and pay any tax lawfully due and owing.
0
______________________________________________________________________________
RULINGS, DETERMINATION LETTERS, AND CLOSING AGREEMENTS PUBLIC
6$
LAW (11)-23, (approved 6/14/87)
Rulings and Determination Letters in General:
"Rulings and determination letters are issued to individuals and organizations upon
written request... as to their status for tax purposes... prior to their filing of tax
returns or reports as required by the revenue laws. Rulings are issued only by the
National Office. Determination letters are issued only by District Directors and the
Director of International Operations..."
MT 1218-196
Your address
Your city, state, zip
Statement of Facts
Date:
Assistant Chief Counsel

(Income Tax and Accounting)
1111 Constitution Avenue, NW
Re: Requested Internal Revenue Rulings, (Treasury Decisions); Indefinite Filing Extension
(
Dear Assistant Chief Counsel,
3/
Prior to my filing for 2000 and any subsequent tax returns there is a number of issues that must
be satisfactorily addressed via the Internal Revenue Ruling (Treasury Decision) process as
stipulated in Public Law (11)-23.
The Internal Revenue Service (IRS) is required to provide Internal Revenue Rulings on requests
submitted in writing, on specific situations, questions, or issues and to provide a ruling or
0
determination on the taxability or tax status on the issues or situations in question. The IRS has
provided thousands of these types of rulings in the past. A ruling or determination is being
requested, as stipulated in the attached “Written Request for Verified Determination of Status for
Individual Income Tax Purposes, Prior to Filing of Tax Returns Pursuant to Public Law (11)-23,”
6$
on the below listed issues. It is requested that you do not delay any one response while
attempting to resolve the balance of the requested rulings.
I am also hereby formally requesting under the Provisions of Public Law (11)-23 an
indefinite extension of time for me to file my tax form for 2000 or any subsequent years
federal Individual Income Tax returns, until such time as we have received a full, complete
and proper, formal response to all of the issues submitted in this letter.
The first issue to be discussed in this Statement of Facts is the Fifth Amendment to the U.S.
Constitution, specifically the provision pertaining to self-incrimination. The filing of a Federal
Income Tax form is done under the penalties of perjury and the information supplied on this
document can be given to the Department of Justice which can result in criminal prosecution The
Supreme court in Garner v. U. S., 424 U.S. 648 (1975) ruled that the information on a tax
return, federal or otherwise, is compelled testimonial communication.
3
The Garner ruling specifically stated:
"The information revealed in the preparation and filing of an income tax return is, for the
purposes of the Fifth Amendment analysis, testimony of a witness."
Furthermore, in the case of U.S. v. Doe, 456 US 605, 79 L.Ed 2d 552, (1985), the Supreme Court
held that the act of producing subpoenaed documents would involve testimonial self-
incrimination. In light of this I am requesting a Determination as to how I can file a tax return
without surrendering my rights against self-incrimination under the 5th Amendment to the U.S.
Constitution as all federal tax returns must be filed under penalty of perjury.
The next Determination deals with which tax form to file if one is filing an Individual Income
Tax return. My research revealed that Form 1040 has been assigned an OMB number of 1545-
0074, by the Office of Management and Budget. That form is not authorized for use in filing a
return for Individual Income Taxes imposed by 26 USC §1. The only correct form authorized by
the Office of Management and Budget for filing a return for Individual Income Taxes is OMB
(
number 1545-0067, designated as Form 2555, which is entitled “Foreign Earned Income”. I did
not have any “Foreign Earned Income” during the [year], from taxable sources listed and defined
in 26 CFR 1.861-8.
3/
Further study shows that there is no implementing regulation for 26 USC §1, since Treasury
Decision 7665 deleted 26 CFR §1.1-1 in 1982. Without an implementing regulation for 26 USC
§1, there can be no individual income tax imposed on anyone. [See, California Bankers
Association v. Schultz, 416 U.S. 21 (1974)] In light of this information, I am requesting that you
cite which law would permit me to file a 1040 Federal Income Tax Form for the Individual
Income Tax without violating federal law or committing fraud.
0
Also, concerning 2000, I need a Determination as to whether I earned any “Income” as defined
by the United States Supreme Court and 26 CFR regulations.
6$
In my research I have found that there are only two types of taxes that are allowed for in the
United States Constitution. The first is a "Direct Tax." This tax can only be imposed on people
or property. The second tax is an "Indirect Tax," which can only be on an activity or happening
of an event that is taxable for revenue purposes. The Supreme Court defined these items in the
following manner:
"Direct taxes bear immediately on persons, upon the possession and enjoyment of rights;
indirect taxes are levied upon the happening of an event as an exchange." -Knowleton v.
Moore 178 U.S. 41, 20 S CT 747 Also see: Brushaber v. Union Pacinc R.R. 240 US 1.
There is not a direct tax on people (head tax) in existence today. There is currently a tax on
property. This tax does not include wages, salary, or commissions one receives. In fact, the
Sixty -Third Congress (1913), debating on an Income Tax Law shortly after the passage of the
16th Amendment, was very clear in what was not going to be taxed. For example, Senator
Brandegee stated:
4
“I am simply calling attention to the fact that the amendment of the Senator from South
Dakota will exempt entirely from taxation every income derived from personal effort,
because the expression “profession, trade, or vocation” includes every possible line of
human effort.”
Compensation, salary, and commissions of an American citizen cannot be regarded as income

based on the Congressional debates regarding the issue in the Congressional Record and
concurring court decisions. However, in regard to wages (compensation for services), the IRS
instructs that you must include everything you receive in payment of personal service in your
“Gross Income" [Pub. 17 (Rev. Nov. 82), Pg. 33]. The IRS alleges that "gross receipts" are
equivalent to "gross income." The courts have a different interpretation:
"Whatever difficulty that may be about a precise and scientific definition of "income," it
imparts, as used here, something entirely distinct from principal or capital either as a
subject of taxation or as a measure of the tax, conveying rather the idea of gain or
increase arising from, corporate activity." - Dole v. Mitchell Bros. Co. 247 U.S. 179
(
(1918)
“Of Course, gross income and not gross receipts, is the foundation of income tax
3/
liability, for it is only earnings, profits and gains which the statute subjects to tax." -
Clark v. U.S. (1954) 211 F. 2d 100. (Emphasis Added)
"Income, as used in the statute, should be given the meaning so as not to include
everything that comes in the true function other words ‘gains’ and ‘profits is to limit
the meaning of the word ‘income’” - So. Pacific v. Lowe. 238 F 847. Clark v. U.S.
(1954) 211 F. 2d 100. (Emphasis Added)
0
"The statute and the statute alone determines what is income to be taxed. It taxes only
income derived from many different specified sources; one does not "derive” income by
rendering services and charging for them." - Edwards v. Deith (1916) 231 F 110.
6$
(Emphasis Added)
"Decided cases have made the distinction between wages and income and have refused to
equate the two.” - Central Illinois Publishing v. U.S. 435 U.S. 31.
If I did not receive “income” as defined by the courts, then I cannot have “gross income” as
defined in the Internal Revenue Code, and it would not be possible to have a taxable year as
defined under section 6012 (a). Therefore, I could not be liable under section 441(b) since I
could not have had a “taxable year.”
There are many district court cases and some cases in the court of appeals that would have one
believe that the current income tax is a direct tax on income that is relieved from the rule of
apportionment by the language of the 16th Amendment. It seems evident that this is how the IRS
would like to interpret this, as it states in the "IRS Tax Guide For Individuals." I am sure that
you are aware that IRS Publication #17 is in contradiction to the "IRS Tax Guide for
Individuals."
5
"This publication covers some subjects on which a court may have made a decision more
favorable to taxpayers than the interpretation of the IRS. Until these differing
interpretations are resolved by higher court decisions or in some other way, this
publication will continue to present the interpretations of the IRS.
In researching other Supreme Court decisions on the precise interpretation of the 16th
Amendment, I find that one must fully understand the wording in this amendment to comprehend
its meaning. The Supreme Court has defined the word "Income" to mean the same thing as
profit or gain – Eisner v. Macomber. 252 U. S. 189.
Therefore, when an American citizen receives a wage or salary in return for labor this is not
income. Please keep in mind that these are not my interpretations, but those of the Supreme
Court.
While researching related tax cases involving direct and indirect taxes at the Supreme Court
level, I cannot find one case where the United States Supreme Court ruled in its decision that the
(
income tax is a "Direct Tax." In every decision that has ever been handed down by the Supreme
Court, it has always referred to the current income tax as an "Indirect Tax.”
3/
A "Direct Tax" is only applied to people and property. An "Indirect Tax" is applied only to
revenue taxable activities as outlined in the IRC. Taking the above rulings, decisions and
definitions into consideration, I would ask, as a part of your Findings of Fact and Conclusions of
law to be included in this Determination Letter, for you to identify the precise code section in the
Internal Revenue Code that specifies that an American citizen is liable for the (Individual Income
Tax) tax. I will also need the statute and regulation that identifies thespecific tax form the
individual would be required to file for that particular tax. I am requesting that you also identify
0
the precise statute and/or regulation that would indicate that I am involved in a revenue taxable
activity, as itemized in 26 CFR 1.861-8(f).
Please note that my reliance on the opinions of the United States Supreme Court is based on the
6$
doctrine of "Stare Decisis," which is best set forth as:
"And if the doctrine of Stare Decisis has any meaning at all, it requires that the people in
their everyday affairs be able to rely upon the decisions of the Supreme Court and not be
necessarily penalized for such reliance." - Cf. Flood v. Kuhn 407 S. 258 Wallace v.
McConnell 13 Pet. 136, 10 L. ED. 95.
As one legal tax professional put it:
"In searching the code for individuals that would be liable, I found that Sections 6001 and
6011 only applies to a "person liable" or "a person made liable" for any tax imposed. It is
important to note that the Internal Revenue Code (IRC) purposely omits a liability for
income taxes. There is no law quoted in Subtitle A of the IRC (pertaining to income
taxes) stating that one is liable for the income tax, that one is required to make a return, or
that one must pay the income tax, nor are there any cross references to any of the
provisions in Subtitle F where Sections 6001, 6011 or 6012 are found.”
6
If there is such a law or there are any cross-references that would dispute the above opinion,
please specifically identify that law, or cross-reference it in your Findings of Fact and
Conclusions of Law.
Under legal doctrine "expression unius est exclusio alterius" (the express mention of one thing
means the implied exclusion of another), it appears that the Congress could have, but specifically
chose not to create any mandatory liability for income taxes or for the need to make income tax
returns with reference to American citizens.
Obviously, IRC sections 6001 and 6011 do not apply to Individual Income taxes, but might
apply to other code sections that create a liability for taxes that are imposed ( i.e. 4374 creates
the liability for taxes imposed on insurance policies issued by foreign insurers, 4401(c) creates
liability for a wagering tax, 5505 creates the liability for taxes imposed on distilled spirits, and
5703(a) creates the liability for tobacco taxes.)
There is no comparable section of the code creating any liability for income taxes. Nor
(
should it be assumed that anyone who receives income is "automatically" liable because it only
"makes sense" that the recipient of income would be liable for the tax. This assumption is shown
to be false in a gift tax event where the donor (not the recipient) is liable for the tax on gifts.
3/
This can be ascertained by reading section 2503(c).
How have the courts responded to the question of liability?
“Keeping in mind the well settled rule that the citizen is exempt from taxation unless the
same is imposed by clear and unequivocal language, and that where the construction of
tax law is doubtful, the doubt is to be resolved in favor of those upon whom the tax is
0
sought to be laid.” - Spreckles Sugar Ref. Co. v. McClain 192 U.S. 397.
"Liability for taxation must clearly appear from statute imposing tax.” -Higley v.
Commissioner of Internal Revenue Service.
6$
“…the taxpayer must be liable for the income tax. Tax liability is a condition precedent
to the demand! Merely demanding payment, even repeatedly, does not cause liability.” -
Boethke v. Flour Engineers & Contractors 713 F 2nd 1405 (Emphasis Added)
In reading Section 6001 of Title 26 USC, it stipulates that:
"Whenever in the judgment of the Secretary it is necessary, he may require any person,
by notice served upon such person or by regulation, to make such returns."
I have not received Notice 555 or 557 requiring me to file a return or keep records. Without such
Notice, I would have no idea as to what specific records (26 CFR 1.6011-1) to keep or what
specific form to file. The courts have also ruled on this matter, stating inU.S. v. Mobil Oil
Corp. 543 F. Supp. 507,515 (1981):
7
“It also included, as a part of its General Administrative Provisions, record and return,
examination and summons provisions which, with one exception, were identical to those
found in the 1924 Act. The exception was that the record and return provision required
taxpayers to make returns and statements and keep records where the Commissioner
served notice on them, but it did not require them to perform these acts in the absence of
notice by the Commissioner.”
The courts have also been very clear that the term “Taxpayer” is not an appellation to be taken
lightly:
“The reasonable construction of the taxing statutes does not include vesting any tax
official with absolute power of assessment against individuals not specified in the statutes
as persons liable for the tax without an opportunity for judicial revue of this status before
the appellation of “Taxpayer” is bestowed upon them and their property seized.” Botta
v. Scanlon 228 F. 2nd 304 (1961) (Emphasis Added)
(
I want to exhaust all administrative remedies prior to petitioning for a judicial determination of
the term “Taxpayer” being used on myself, should it be necessary. This request for a
Determination Letter should satisfy that requirement.
3/
The courts have made it very clear that an American Citizen does not have to pay a tax for the
mere privilege of existing, as otherwise inferred by the Internal Revenue Code. The court ruled:
“The individual, unlike the corporation, cannot be taxed for the mere privilege of
existing. The corporation is an artificial entity which owes its existence and charter to the
state; but the individual’s right to live and own property areNATURAL RIGHTS for
0
the enjoyment of which an EXCISE cannot be imposed.” - Redfield v. Fisher, 292 P.
813 (Emphasis Added)
The courts have also ruled that a non-taxpayer is not subject to Internal Revenue Laws in any
6$
way:
“The revenue laws are a code or system in regulation of tax assessment and collection.
They relate to taxpayers, and not to non-taxpayers. The latter are without their scope.
No procedure is prescribed for non-taxpayers and no attempt is made to annul any of
their rights and remedies in due course of law. With them Congress does not assume to
deal and they are neither the SUBJECT or the OBJECT of the revenue laws.” -Long v.
Rasmussen, 281F.236
My claim (unless proven otherwise by your forthcoming Findings of Fact and Conclusions
of Law) is that I am not a “TAXPAYER” as that term applies to the Individual Income Tax
and never has been. Any tax returns mailed in the past to the IRS were done in ignorance
of the law and were done in error.
Another issue concerns the method in which you communicate with me. All previous
correspondence has been addressed to JOHN DOE. You will notice that all of the letters in the
names are capitalized. The United States Type Style Manual specifically states that the names of
all natural persons are printed with a combination of upper and lower case letters. Only entity
8
modules are referred to with all capital letters. I understand that the IRS has created the fictitious
entity of JOHN DOE. This fictitious entity(s) was created by the IRS and is, in reality,
nonexistent. In support of that is the statement from the Internal Revenue Manual 6209, which
states:
Section 9/Notices and Notice Codes
.01 General
“Computer generated notices and letters of inquiry are mailed to taxpayers in connection
with tax returns for BMF, IMF, and IRAF. Computer paragraph (CP) numbers (3 digit
numbers for BMF and IRAF, and 2 digit numbers for IMF) are located in the upper
left corner of the notices and letters…”
BMF-Business Master File

IMF-Individual Master File
(
As an example, when no return has been mailed in, I have been sent CP-515 letters requesting a
1040 form. According to the 6209 Manual, this letter is for businesses, not individuals. CP-501,
3/
502, 503 and 504 letters are also only for businesses.
If it continues, a Complaint will be filed with the Treasury Inspector General for Tax
Administration (TIGTA) pursuant to the IRS Restructuring and Reform Act of 1998, section
1203 against the offending agent. If the IRS wishes to correspond with me in the future, the
correspondence must be addressed properly as specified in the United States Type Style Manual.
0
I will begin to close this letter with one final ruling from the U.S. Supreme Court. The court in
its response to the requirement of the filing of a 1040 Individual Income Tax Return and to the
effects of the government’s actions as it relates to that requirement, stated:
6$
“Because of what appears to be a lawful command on the surface, many citizens,

because of their respect for what only appears to be law, are cunningly coerced into
waiving their rights due to ignorance.” U.S. v. Minker, 350 US. 179, at 187.
As I continue to research the laws and regulations associated with the Income Tax, I can do
nothing but agree with the courts. If you have any certified documents and/or case rulings that
refute the Findings of the courts referred to in this Request, please put them in with the Findings
of Fact and Conclusions of Law.
If you are unable to refute the claims made in this document I will expect to receive a letter from
you indicating that the natural person, John Doe, is in fact, not a “TAXPAYER" as far as the
Individual Income Tax is concerned, and that any file you might keep on me in the future will
reflect that status.
9
Bottom Line: “have I ever been made liable for the Individual Income Tax for any of the
years ______?
The specific determinations I am requesting are:
1) How, When, and Where I became a Federal Individual Income Tax payer for each
of the years in question.
2) The specific Federal Tax I has been made liable for each of the years in question.
3) The specific form I am required to file for that Tax for each of the years in question.
I hereby request a copy of the Findings of Fact and Conclusions of Law that you will use as a
basis of your determination pursuant to the Administrative Procedures Act, specifically 5 USC
556 (d). I ask for the Determination Letter to be sent within 30 days of the date on this letter. If
more time is needed, please make a written request and it will be granted. Should your
Determination be that I have been “made liable” for the Individual Income Tax for any of the
years in question, this is a request for a Conference with you pursuant to section 8.02 (7).
(
I have never asked for a Determination or Letter Ruling on these issues, or ones similar to them,
for myself. I have never asked for a Determination or Letter Ruling and withdrew it before a
of User Fees for the requested letter.

3/
Determination was issued. Enclosed is a money order for $275.00 paid pursuant to the Schedule
If this is not a proper format for making this request, please send that format with instructions to
me. Please respond within 30 days.
Failure to respond will indicate that you have "acquiesced" to the validity of the claims outlined
0
in this document in their entirety. All responses must contain an original signature and must be
attested to under penalties of perjury to insure that the responses provided by the IRS are valid.
Any statements or claims in this document, properly rebutted by Findings of Fact and
6$
Conclusions of Law, or Supreme Court rulings, such shall not prejudice the lawful validity
of other claims not properly rebutted.
Your name
On this ____________day of _____________________________, _____________.

Before me, the undersigned, a Notary Public, in and for the above county and state, personally appeared
_________________________ who proved to me on the basis of satisfactory evidence to be the state Citizen whose
name is subscribed to the within instrument, and acknowledged to me that he executed the same in his authorized
capacity by placing his hand and seal on this instrument.
WITNESS my hand and official seal as of the date set forth above.
By: _________________________________________.
Notary Public
10
Internal Revenue Bulletin No. 2001–1
January 2, 2001
bulletin
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
EMPLOYEE PLANS risdiction of the Office of the Commissioner, Tax Exempt and
Government Entities Division, is provided. Rev. Proc.
Rev. Proc. 2001–4, page 121. 2000–8 superseded.
Rulings and information letters; issuance proce-
dures. Revised procedures are provided for furnishing rul-
ing letters, information letters, etc., on matters relating to
EXEMPT ORGANIZATIONS
sections of the Code currently under the jurisdiction of the Rev. Proc. 2001–4, page 121.
Commissioner, Tax Exempt and Government Entities Divi- Rulings and information letters; issuance procedures.
sion. Rev. Proc. 2000–4 superseded. Revised procedures are provided for furnishing ruling letters,
information letters, etc., on matters relating to sections of
Rev. Proc. 2001–5, page 164. the Code currently under the jurisdiction of the Commis-
Technical advice. Revised procedures, in conformance sioner, Tax Exempt and Government Entities Division. Rev.
with the Internal Revenue Service Restructuring and Reform Proc. 2000–4 superseded.
Act of 1998, are provided for furnishing technical advice to
area managers and appeals offices by the Office of the Rev. Proc. 2001–5, page 164.
Commissioner, Tax Exempt and Government Entities Divi- Technical advice. Revised procedures, in conformance
sion, regarding issues in the employee plans area (including with the Internal Revenue Service Restructuring and Reform
actuarial matters) and in the exempt organizations area. Act of 1998, are provided for furnishing technical advice to
Rev. Proc. 2000–5 superseded. area managers and appeals offices by the Office of the
Commissioner, Tax Exempt and Government Entities Divi-
Rev. Proc. 2001–6, page 194. sion, regarding issues in the employee plans area (including
Employee plans determination letters. Revised proce- actuarial matters) and in the exempt organizations area.
dures are provided for issuing determination letters on the Rev. Proc. 2000–5 superseded.
qualified status of employee plans under sections 401(a),
403(a), 409, and 4975 of the Code. Rev. Proc. 2000–6 su- Rev. Proc. 2001–8, page 239.
perseded. Rev. Proc. 2000–27 modified. User fees for employee plans and exempt organiza-
tions. Up-to-date guidance for complying with the user fee
Rev. Proc. 2001–8, page 239. program of the Service as it pertains to requests for letter
User fees for employee plans and exempt organiza- rulings, determination letters, etc., on matters under the ju-
tions. Up-to-date guidance for complying with the user fee risdiction of the Office of the Commissioner, Tax Exempt and
program of the Service as it pertains to requests for letter Government Entities Division, is provided. Rev. Proc.
rulings, determination letters, etc., on matters under the ju- 2000–8 superseded.
(Continued on the next page)
Numerical Finding List of Revenue Rulings, Revenue Procedures, Treasury Decisions, etc., published in the Bulletin from July
through December 2000 begins on page ii.
Finding List of Previously Published Items published in the Bulletin from July through December 2000 begins on page iii.
Cumulative List of Declaratory Judgment Proceedings Under Section 7428 for 2000 begins on page 252.
Index of items published in the Bulletin from July through December 2000 begins on page iv.
Department of the Treasury

HIGHLIGHTS
OF THIS ISSUE—Continued
ADMINISTRATIVE ciate Chief Counsel (Tax Exempt and Government Enti-
ties). Revised procedures are provided for furnishing techni-
Rev. Proc. 2001–1, page 1. cal advice to the directors and area directors, appeals, in
Letter rulings, determination letters, and information
areas under the jurisdiction of the Associate Chief Counsel
letters issued by the Associate Chief Counsel (Corpo-
(Corporate), Associate Chief Counsel (Financial Institutions &
rate), Associate Chief Counsel (Financial Institutions &
Products), Associate Chief Counsel (Income Tax & Account-
Products), Associate Chief Counsel (Income Tax & Ac-
ing), Associate Chief Counsel (International), Associate Chief
counting), Associate Chief Counsel (International), As-
Counsel (Passthroughs & Special Industries), Associate Chief
sociate Chief Counsel (Passthroughs & Special Indus-
Counsel (Procedure and Administration), and Division Coun-
tries), Associate Chief Counsel (Procedure and
Administration), and Division Counsel/Associate Chief sel/Associate Chief Counsel (Tax Exempt and Government
Counsel (Tax Exempt and Government Entities). Re- Entities). Taxpayer’s rights, when technical advice has been
vised procedures are provided for issuing letter rulings, de- requested, also are provided. Rev. Proc. 2000–2 super-
termination letters, and information letters on specific issues seded.
under the jurisdiction of the Associate Chief Counsel (Corpo-
rate), Associate Chief Counsel (Financial Institutions & Prod- Rev. Proc. 2001–3, page 111.
ucts), Associate Chief Counsel (Income Tax & Accounting), Areas in which advance rulings will not be issued (do-
Associate Chief Counsel (International), Associate Chief Coun- mestic areas). This procedure provides a revised list of
sel (Passthroughs & Special Industries), Associate Chief those provisions of the Code under the jurisdiction of the As-
Counsel (Procedure and Administration), and Division Coun- sociates Chief Counsel and the Division Counsel/Associate
sel/Associate Chief Counsel (Tax Exempt and Government Chief Counsel (Tax Exempt and Government Entities) relating
Entities). Rev. Proc. 2000–1 superseded; Notices 84–37, to matters where the Service will not issue rulings or determi-
96–13, and 97–19 modified. nation letters. Rev. Procs. 2000–3, 2000–46, and 2000–47
superseded.
Rev. Proc. 2001–2, page 79.
Technical advice furnished by the Associate Chief Rev. Proc. 2001–7, page 236.
Counsel (Corporate), Associate Chief Counsel (Finan- Areas in which advance rulings will not be issued; As-
cial Institutions & Products), Associate Chief Counsel sociate Chief Counsel (International). This procedure re-
(Income Tax & Accounting), Associate Chief Counsel vises the list of those provisions of the Code under the juris-
(International), Associate Chief Counsel (Passthroughs diction of the Associate Chief Counsel (International) relating
& Special Industries), Associate Chief Counsel (Proce- to matters where the Service will not issue advance rulings
dure and Administration), and Division Counsel/Asso- or determination letters. Rev. Proc. 2000–7 superseded.
January 2, 2001 2001–1 I.R.B.

The IRS Mission
Provide America’s taxpayers top quality service by help- and by applying the tax law with integrity and fairness to
ing them understand and meet their tax responsibilities all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument dures must be considered, and Service personnel and oth-
of the Commissioner of Internal Revenue for announcing offi- ers concerned are cautioned against reaching the same con-
cial rulings and procedures of the Internal Revenue Service clusions in other cases unless the facts and circumstances
and for publishing Treasury Decisions, Executive Orders, Tax are substantially the same.
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly and may be obtained The Bulletin is divided into four parts as follows:
from the Superintendent of Documents on a subscription
basis. Bulletin contents are consolidated semiannually into
Cumulative Bulletins, which are sold on a single-copy basis. Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
Part II.—Treaties and Tax Legislation.
of the tax laws, including all rulings that supersede, revoke,
This part is divided into two subparts as follows: Subpart A,
modify, or amend any of those previously published in the
Tax Conventions, and Subpart B, Legislation and Related
Bulletin. All published rulings apply retroactively unless other-
Committee Reports.
wise indicated. Procedures relating solely to matters of in-
ternal management are not published; however, statements
of internal practices and procedures that affect the rights Part III.—Administrative, Procedural, and Miscellaneous.
and duties of taxpayers are published. To the extent practicable, pertinent cross references to
these subjects are contained in the other Parts and Sub-
parts. Also included in this part are Bank Secrecy Act Admin-
Revenue rulings represent the conclusions of the Service on
istrative Rulings. Bank Secrecy Act Administrative Rulings
the application of the law to the pivotal facts stated in the
are issued by the Department of the Treasury’s Office of the
revenue ruling. In those based on positions taken in rulings
Assistant Secretary (Enforcement).
to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature
are deleted to prevent unwarranted invasions of privacy and Part IV.—Items of General Interest.
to comply with statutory requirements. This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
Rulings and procedures reported in the Bulletin do not have
the force and effect of Treasury Department Regulations, The first Bulletin for each month includes a cumulative index
but they may be used as precedents. Unpublished rulings for the matters published during the preceding months.
will not be relied on, used, or cited as precedents by Service These monthly indexes are cumulated on a semiannual basis,
personnel in the disposition of other cases. In applying pub- and are published in the first Bulletin of the succeeding semi-
lished rulings and procedures, the effect of subsequent leg- annual period, respectively.
islation, regulations, court decisions, rulings, and proce-
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.
2001–1 I.R.B. January 2, 2001

insert
missing
children here
Guadalupe
Sanchez &
Kenneth
Savage
January 2, 2001 2001–1 I.R.B.
Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2001–1

TABLE OF CONTENTS
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE? p. 7
SECTION 2. IN WHAT FORM p. 8

IS GUIDANCE PROVIDED BY
THE OFFICES OF ASSOCIATE .01 Letter ruling
CHIEF COUNSEL (CORPORATE),
ASSOCIATE CHIEF COUNSEL .02 Closing agreement
(FINANCIAL INSTITUTIONS &
PRODUCTS), ASSOCIATE CHIEF .03 Determination letter
COUNSEL (INCOME TAX &
ACCOUNTING), ASSOCIATE .04 Information letter
CHIEF COUNSEL (INTERNATIONAL),
ASSOCIATE CHIEF COUNSEL .05 Revenue ruling
(PASSTHROUGHS &
SPECIAL INDUSTRIES), .06 Oral guidance
ASSOCIATE CHIEF COUNSEL
(PROCEDURE AND (1) No oral rulings, and no written rulings in response to oral requests
ADMINISTRATION), AND
DIVISION COUNSEL/ASSOCIATE (2) Discussion possible on substantive issues
CHIEF COUNSEL (TAX EXEMPT
AND GOVERNMENT ENTITIES)?
SECTION 3. ON WHAT ISSUES p. 10

MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER .01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate)
THIS PROCEDURE?
.02 Issues under the jurisdiction of the Associate Chief Counsel (Financial Insti-
tutions & Products)
.03 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax &
Accounting)
.04 Issues under the jurisdiction of the Associate Chief Counsel (International)
.05 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs
& Special Industries)
.06 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and
Administration)
.07 Issues under the jurisdiction of the Division Counsel/Associate Chief Coun-
sel (Tax Exempt and Government Entities)

MUST WRITTEN GUIDANCE
BE REQUESTED UNDER .01 Alcohol, tobacco, and firearms taxes
DIFFERENT PROCEDURES?
.02 Employee plans and exempt organizations
2001–1 I.R.B. 1 January 2, 2001

SECTION 5. UNDER WHAT p. 12
CIRCUMSTANCES DOES
THE NATIONAL OFFICE .01 In income and gift tax matters
ISSUE LETTER RULINGS?
.02 A § 301.9100 request for extension of time for making an election or for
other relief
.03 Determinations under § 999(d) of the Internal Revenue Code
.04 In matters involving § 367
.05 In estate tax matters
.06 In matters involving additional estate tax under § 2032A(c)
.07 In matters involving qualified domestic trusts under § 2056A
.08 In generation-skipping transfer tax matters
.09 In employment and excise tax matters
.10 In administrative provisions matters
.11 In Indian tribal government matters
.12 Generally not to business associations or groups
.13 Generally not to foreign governments
.14 Generally not on federal tax consequences of proposed legislation
.15 Issuance of a letter ruling before the issuance of a regulation or other pub-
lished guidance

CIRCUMSTANCES DO
DIRECTORS ISSUE .01 In income and gift tax matters
DETERMINATION LETTERS?
.02 In estate tax matters
.03 In generation-skipping transfer tax matters
.04 In employment and excise tax matters
.05 Circumstances under which determination letters are not issued by a director
.06 Requests concerning income, estate, or gift tax returns
.07 Attach a copy of determination letter to taxpayer’s return
.08 Review of determination letters

CIRCUMSTANCES DOES
THE SERVICE HAVE .01 Ordinarily not in certain areas because of factual nature of the problem
DISCRETION TO ISSUE
LETTER RULINGS AND .02 Not on alternative plans or hypothetical situations
January 2, 2001 2 2001–1 I.R.B.

.03 Ordinarily not on part of an integrated transaction
.04 Ordinarily not on questions involving the validity of the federal income tax
or similar matters
.05 On constructive sales price under § 4216(b) or § 4218(c)
.06 Ordinarily not on which of two entities is the common law employer
SECTION 8. WHAT ARE THE p. 20

GENERAL INSTRUCTIONS .01 Certain information required in all requests
FOR REQUESTING LETTER
RULINGS AND (1) Complete statement of facts and other information
(2) Copies of all contracts, wills, deeds, agreements, instruments, other docu-
ments, and foreign laws
(3) Analysis of material facts
(4) Statement regarding whether same issue is in an earlier return
(5) Statement regarding whether same or similar issue was previously ruled
on or requested, or is currently pending
(6) Statement regarding interpretation of a substantive provision of an in-

come or estate tax treaty
(7) Letter from Bureau of Indian Affairs relating to a letter ruling request for
recognition of Indian tribal government status or status as a political sub-
division of an Indian tribal government
(8) Statement of supporting authorities
(9) Statement of contrary authorities
(10) Statement identifying pending legislation
(11) Statement identifying information to be deleted from copy of letter rul-

ing or determination letter for public inspection
(12) Signature by taxpayer or authorized representative
(13) Authorized representatives
(14) Power of attorney and declaration of representative
(15) Penalties of perjury statement
(16) Number of copies of request to be submitted
(17) Sample format for a letter ruling request
(18) Checklist for letter ruling requests
.02 Additional information required in certain circumstances
(1) To request separate letter rulings for multiple issues in a single situation
2001–1 I.R.B. 3 January 2, 2001

(2) To designate recipient of original or copy of letter ruling or determination letter
(3) To request a particular conclusion on a proposed transaction
(4) To request expedited handling
(5) To receive any document related to the letter ruling request by facsimile
transmission (fax)
(6) To submit a request for a letter ruling by fax
(7) To request a conference
(8) To obtain the applicable user fee for substantially identical letter rulings
or identical accounting method changes
.03 Address to send the request
(1) Requests for letter rulings
(2) Requests for determination letters
.04 Pending letter ruling requests
.05 When to attach letter ruling to return
.06 How to check on status of request
.07 Request may be withdrawn or national office may decline to issue letter ruling
.08 Compliance with Treasury Department Circular No. 230
SECTION 9. WHAT OTHER p. 33

CHECKLISTS, GUIDELINE
REVENUE PROCEDURES, .01 Checklists, guideline revenue procedures, and notices
NOTICES, SAFE HARBOR
REVENUE PROCEDURES, .02 Safe harbor revenue procedures
AND AUTOMATIC CHANGE
REVENUE PROCEDURES .03 Automatic change revenue procedures
APPLY TO CERTAIN
REQUESTS?
SECTION 10. HOW DOES THE p. 39

NATIONAL OFFICE HANDLE
LETTER RULING REQUESTS? .01 Controls request and refers it to appropriate Assistant Chief Counsel’s of-
fice or Assistant Chief Counsel’s office
.02 Branch representative contacts taxpayer within 21 days
.03 Notifies taxpayer if any issues have been referred to another branch or office
.04 Determines if transaction can be modified to obtain favorable letter ruling
.05 Is not bound by informal opinion expressed
.06 Tells taxpayer if request lacks essential information during initial contact
.07 Requires prompt submission of additional information requested after initial

contact
January 2, 2001 4 2001–1 I.R.B.

.08 Near the completion of the ruling process, advises the taxpayer of conclu-
sions and, if the Service will rule adversely, offers the taxpayer the opportu-
nity to withdraw the letter ruling request
.09 May request draft of proposed letter ruling near the completion of the ruling
process
.10 Issues separate letter rulings for substantially identical letter rulings and
generally issues a single letter ruling for identical accounting method
changes
.11 Sends copy of letter ruling to appropriate Service official
SECTION 11. HOW ARE p. 43

CONFERENCES
SCHEDULED? .01 Schedules a conference if requested by taxpayer
.02 Permits taxpayer one conference of right
.03 Disallows verbatim recording of conferences
.04 Makes tentative recommendations on substantive issues
.05 May offer additional conferences
.06 Requires written confirmation of information presented at conference
.07 May schedule a pre-submission conference
.08 Under limited circumstances, may schedule a conference to be held by telephone
SECTION 12. WHAT EFFECT p. 46

WILL A LETTER RULING
HAVE? .01 May be relied on subject to limitations
.02 Will not apply to another taxpayer
.03 Will be used by a director in examining the taxpayer’s return
.04 May be revoked or modified if found to be in error
.05 Not generally revoked or modified retroactively
.06 Retroactive effect of revocation or modification applied to a particular trans-

action
.07 Retroactive effect of revocation or modification applied to a continuing ac-

tion or series of actions
.08 Generally not retroactively revoked or modified if related to sale or lease

subject to excise tax
.09 May be retroactively revoked or modified when transaction is entered into

before the issuance of the letter ruling
.10 May be retroactively revoked or modified when transaction is entered into

after a change in material facts
.11 Taxpayer may request that retroactivity be limited
2001–1 I.R.B. 5 January 2, 2001

(1) Request for relief under § 7805(b) must be made in required format
(2) Taxpayer may request a conference on application of § 7805(b)
SECTION 13. WHAT EFFECT p. 49

WILL A DETERMINATION
LETTER HAVE? .01 Has same effect as a letter ruling
.02 Taxpayer may request that retroactive effect of revocation or modification

be limited

CIRCUMSTANCES ARE
MATTERS REFERRED .01 Requests for determination letters
BETWEEN A FIELD
OFFICE AND THE NATIONAL .02 No-rule areas
OFFICE?
.03 Requests for letter rulings
SECTION 15. WHAT ARE THE p. 51

USER FEE REQUIREMENTS
FOR REQUESTS FOR LETTER .01 Legislation authorizing user fees
RULINGS AND DETERMINATION
LETTERS? .02 Requests to which a user fee applies
.03 Requests to which a user fee does not apply
.04 Exemptions from the user fee requirements
.05 Fee schedule
.06 Applicable user fee for a request involving multiple offices, fee categories,
issues, transactions, or entities
.07 Applicable user fee for substantially identical letter rulings or identical ac-
counting method changes
.08 Method of payment
.09 Effect of nonpayment or payment of incorrect amount
.10 Refunds of user fee
.11 Request for reconsideration of user fee
SECTION 16. WHAT p. 56

ARE THE GENERAL
PROCEDURES APPLICABLE .01 Will be made available to the public
TO INFORMATION LETTERS
ISSUED BY THE .02 Deletions made under the Freedom of Information Act
NATIONAL OFFICE?
.03 Effect of information letters
January 2, 2001 6 2001–1 I.R.B.

SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 2000–1?
SECTION 18. WHAT IS THE p. 58

EFFECT OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS?

EFFECTIVE DATE OF THIS
REVENUE PROCEDURE?
SECTION 20. PAPERWORK p. 59

REDUCTION ACT
DRAFTING INFORMATION p. 59
INDEX p. 61
APPENDIX A—SCHEDULE p. 64
OF USER FEES
APPENDIX B—SAMPLE p. 69
FORMAT FOR A LETTER
RULING REQUEST
APPENDIX C—CHECKLIST p. 72
FOR A LETTER RULING
REQUEST
APPENDIX D—LIST OF p. 77
SMALL BUSINESS/SELF-
EMPLOYED DIVISION
(SB/SE) COMPLIANCE
AREA DIRECTORS FOR
REQUESTING
DETERMINATION LETTERS
SECTION 1. WHAT IS THE This revenue procedure explains how the Internal Revenue Service gives guidance to
PURPOSE OF THIS REVENUE taxpayers on issues under the jurisdiction of the Associate Chief Counsel (Corporate),
PROCEDURE? the Associate Chief Counsel (Financial Institutions & Products), the Associate Chief
Counsel (Income Tax & Accounting), the Associate Chief Counsel (International), the As-
sociate Chief Counsel (Passthroughs & Special Industries), the Associate Chief Counsel
(Procedure and Administration), and the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities). It explains the kinds of guidance and the manner in
which guidance is requested by taxpayers and provided by the Service. A sample format
of a request for a letter ruling is provided in Appendix B.
Operating divisions The Service includes four operating divisions that are responsible for meeting the needs of
of the Service the taxpayers they serve. These operating divisions are:
(1) Large and Mid-Size Business Division (LMSB), which generally serves corporations,
S corporations, and partnerships with assets in excess of $5 million;
(2) Small Business/Self-Employed Division (SB/SE), which generally serves corpora-

tions, S corporations, and partnerships with assets less than or equal to $5 million; estates
Sec. 1
2001–1 I.R.B. 7 January 2, 2001
and trusts; individuals filing an individual federal income tax return with accompanying
Schedule C (Profit or Loss from Business (Sole Proprietorship)), Schedule E (Supplemen-
tal Income and Loss), or Schedule F (Profit or Loss from Farming), or Form 2106 (Em-
ployee Business Expenses) or Form 2106-EZ (Unreimbursed Employee Business Ex-
penses); and individuals with international tax returns;
(3) Wage and Investment Division (W&I), which generally serves individuals with wage
and investment income only and with no international tax returns, filing an individual fed-
eral income tax return without accompanying Schedule C, E, or F, or Form 2106 or Form
2106-EZ; and
(4) Tax Exempt and Government Entities Division (TE/GE), which serves three distinct
taxpayer segments: employee plans, exempt organizations, and government entities.
Description of terms used in For purposes of this revenue procedure—

this revenue procedure
(1) any reference to director or field office refers to the Director, Field Operations,
LMSB, the Area Director, Field Compliance, SB/SE, or the Director, Compliance, W&I,
as appropriate, and their respective offices or, when appropriate, the Director, Interna-
tional, LMSB, the Director, Employee Plans Examinations, the Director, Exempt Organi-
zations Examinations, the Director, Federal, State & Local Governments, the Director, Tax
Exempt Bonds, or the Director, Indian Tribal Governments, and their respective offices;
(2) any reference to area office refers to Appeals LMSB Area Office or Appeals SB/SE-
TE/GE Area Office, as appropriate;
(3) the term “taxpayer” includes all persons subject to any provision of the Internal Rev-
enue Code (including issuers of § 103 obligations) and, when appropriate, their represen-
tatives; and
(4) the term “national office” refers to the Office of Associate Chief Counsel (Corporate),
the Office of Associate Chief Counsel (Financial Institutions & Products), the Office of
Associate Chief Counsel (Income Tax & Accounting), the Office of Associate Chief Coun-
sel (International), the Office of Associate Chief Counsel (Passthroughs & Special Indus-
tries), the Office of Associate Chief Counsel (Procedure and Administration), or the Office
of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as
appropriate.
Updated annually The revenue procedure is updated annually as the first revenue procedure of the year, but
may be modified or amplified during the year.
SECTION 2. IN WHAT FORM The Service provides guidance in the form of letter rulings, closing agreements, deter-
IS GUIDANCE PROVIDED BY mination letters, information letters, revenue rulings, and oral advice.
THE OFFICES OF ASSOCIATE
CHIEF COUNSEL (CORPORATE),
(FINANCIAL INSTITUTIONS
& PRODUCTS), ASSOCIATE
CHIEF COUNSEL (INCOME
TAX & ACCOUNTING),
(INTERNATIONAL), ASSOCIATE
CHIEF COUNSEL
(PASSTHROUGHS &
SPECIAL INDUSTRIES),
(PROCEDURE AND
Sec. 1
January 2, 2001 8 2001–1 I.R.B.
ADMINISTRATION), AND
DIVISION COUNSEL/
ASSOCIATE CHIEF
COUNSEL (TAX EXEMPT
AND GOVERNMENT
ENTITIES)?
Letter ruling .01 A “letter ruling” is a written statement issued to a taxpayer by the national office that
interprets and applies the tax laws to the taxpayer’s specific set of facts. A letter ruling in-
cludes the written permission or denial of permission by the national office to a request for
a change in a taxpayer’s accounting method or accounting period. Once issued, a letter
ruling may be revoked or modified for any number of reasons, as explained in section 12
of this revenue procedure, unless it is accompanied by a “closing agreement.”
Closing agreement .02 A closing agreement is a final agreement between the Service and a taxpayer on a
specific issue or liability. It is entered into under the authority in § 7121 and is final unless
fraud, malfeasance, or misrepresentation of a material fact can be shown.
A closing agreement may be entered into when it is advantageous to have the matter per-
manently and conclusively closed or when a taxpayer can show that there are good rea-
sons for an agreement and that making the agreement will not prejudice the interests of the
Government. In appropriate cases, a taxpayer may be asked to enter into a closing agree-
ment as a condition to the issuance of a letter ruling.
If, in a single case, a closing agreement is requested for each person in a class of taxpay-
ers, separate agreements are entered into only if the class consists of 25 or fewer taxpay-
ers. However, if the issue and holding are identical for the class and there are more than 25
taxpayers in the class, a “mass closing agreement” will be entered into with the taxpayer
who is authorized by the others to represent the class.
Determination letter .03 A “determination letter” is a written statement issued by a director that applies the
principles and precedents previously announced by the national office to a specific set of
facts. It is issued only when a determination can be made based on clearly established
rules in the statute, a tax treaty, or the regulations, or based on a conclusion in a revenue
ruling, opinion, or court decision published in the Internal Revenue Bulletin that specifi-
cally answers the questions presented.
A determination letter does not include assistance provided by the U.S. competent au-
thority pursuant to the mutual agreement procedure in tax treaties as set forth in Rev. Proc.
96–13, 1996–1 C.B. 616.
Information letter .04 An “information letter” is a statement issued either by the national office or by a di-
rector. It calls attention to a well-established interpretation or principle of tax law (includ-
ing a tax treaty) without applying it to a specific set of facts. An information letter may be
issued if the taxpayer’s inquiry indicates a need for general information or if the tax-
payer’s request does not meet the requirements of this revenue procedure and the Service
thinks general information will help the taxpayer. The taxpayer should provide a daytime
telephone number with the taxpayer’s request for an information letter. An information
letter is advisory only and has no binding effect on the Service.
Revenue ruling .05 A “revenue ruling” is an interpretation by the Service that has been published in the
Internal Revenue Bulletin. It is the conclusion of the Service on how the law is applied to
a specific set of facts. Revenue rulings are issued only by the national office and are pub-
lished for the information and guidance of taxpayers, Service personnel, and other inter-
ested parties.
Because each revenue ruling represents the conclusion of the Service regarding the appli-
cation of law to the entire statement of facts involved, taxpayers, Service personnel, and
Sec. 2.05
2001–1 I.R.B. 9 January 2, 2001
other concerned parties are cautioned against reaching the same conclusion in other cases
unless the facts and circumstances are substantially the same. They should consider the
effect of subsequent legislation, regulations, court decisions, revenue rulings, notices, and
announcements. See Rev. Proc. 89–14, 1989–1 C.B. 814, which states the objectives of,
and standards for, the publication of revenue rulings and revenue procedures in the Inter-
nal Revenue Bulletin.
Oral guidance .06
(1) No oral rulings, and no written rulings in response to oral requests.
The Service does not orally issue letter rulings or determination letters, nor does it issue
letter rulings or determination letters in response to oral requests from taxpayers. How-
ever, Service employees ordinarily will discuss with taxpayers or their representatives in-
quiries regarding whether the Service will rule on particular issues and questions relating
to procedural matters about submitting requests for letter rulings or determination letters
for a particular case.
(2) Discussion possible on substantive issues.
At the discretion of the Service and as time permits, substantive issues also may be dis-
cussed. However, such a discussion will not be binding on the Service in general or on the
Office of Chief Counsel in particular and cannot be relied upon as a basis for obtaining
retroactive relief under the provisions of § 7805(b).
Substantive tax issues involving the taxpayer that are under examination, in appeals, or in
litigation will not be discussed by Service employees not directly involved in the examina-
tion, appeal, or litigation of the issues unless the discussion is coordinated with those Ser-
vice employees who are directly involved in the examination, appeal, or litigation of the
issues. The taxpayer or the taxpayer’s representative ordinarily will be asked whether the
oral request for guidance or information relates to a matter pending before another office
of the Service or before a federal court.
If a tax issue is not under examination, in appeals, or in litigation, the tax issue may be
discussed even though the issue is affected by a nontax issue pending in litigation.
A taxpayer may seek oral technical guidance from a taxpayer service representative in a
field office or service center when preparing a return or report. Oral guidance is advisory
only, and the Service is not bound to recognize it, for example, in the examination of the
taxpayer’s return.
The Service does not respond to letters seeking to confirm the substance of oral discus-
sions, and the absence of a response to such a letter is not confirmation of the substance of
the letter.
SECTION 3. ON WHAT Taxpayers may request letter rulings, information letters, and closing agreements under
ISSUES MAY TAXPAYERS this revenue procedure on issues within the jurisdiction of the Associate Chief Counsel
REQUEST WRITTEN (Corporate), the Associate Chief Counsel (Financial Institutions & Products), the Associate
GUIDANCE UNDER THIS Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel (International),
PROCEDURE? the Associate Chief Counsel (Passthroughs & Special Industries), the Associate Chief
Counsel (Procedure and Administration), or the Division Counsel/Associate Chief Coun-
sel (Tax Exempt and Government Entities). The national office issues letter rulings to an-
swer written inquiries of individuals and organizations about their status for tax purposes
and the tax effects of their acts or transactions when appropriate in the interest of sound
tax administration.
Taxpayers also may request determination letters within the jurisdiction of the appropri-
ate director offices that relate to the Code sections under the jurisdiction of the Associate
Sec. 2.05
January 2, 2001 10 2001–1 I.R.B.
Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions & Prod-
ucts), the Associate Chief Counsel (Income Tax & Accounting), the Associate Chief Coun-
sel (International), the Associate Chief Counsel (Passthroughs & Special Industries), the
Associate Chief Counsel (Procedure and Administration), or the Division Counsel/Asso-
ciate Chief Counsel (Tax Exempt and Government Entities).
Issues under the jurisdiction .01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate) include those
of the Associate Chief that involve consolidated returns; corporate acquisitions; reorganizations; liquidations; re-
Counsel (Corporate) demptions; spinoffs; transfers to controlled corporations; distributions to shareholders;
corporate bankruptcies; the effect of certain ownership changes on net operating loss car-
ryovers and other tax attributes; debt vs. equity determinations; allocation of income and
deductions among taxpayers; acquisitions made to evade or avoid income tax; and certain
earnings and profits questions.
Issues under the jurisdiction .02 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions &
of the Associate Chief Counsel Products) include those that involve income taxes and accounting method changes of
(Financial Institutions banks, savings and loan associations, real estate investment trusts (REITs), regulated in-
& Products) vestment companies (RICs), real estate mortgage investment conduits (REMICs), insur-
ance companies and products, and financial products.
Issues under the jurisdiction .03 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax &
of the Associate Chief Counsel Accounting) include those that involve recognition and timing of income and deductions
(Income Tax & Accounting) of individuals and corporations; sales and exchanges; capital gains and losses; installment
sales; equipment leasing; long-term contracts; inventories; the alternative minimum tax;
accounting method changes for these and other miscellaneous issues; and accounting periods.
Issues under the jurisdiction .04 Issues under the jurisdiction of the Associate Chief Counsel (International) include the
of the Associate Chief tax treatment of nonresident aliens and foreign corporations; withholding of tax on non-
Counsel (International) resident aliens and foreign corporations; foreign tax credit; determination of sources of
income; income from sources without the United States; subpart F questions; domestic
international sales corporations (DISCs); foreign sales corporations (FSCs); international
boycott determinations; treatment of certain passive foreign investment companies; and
income affected by treaty.
For the procedures to obtain advance pricing agreements under § 482, see Rev. Proc.
96–53, 1996–2 C.B. 375, as modified by Notice 98–65, 1998–2 C.B. 803.
For the procedures concerning competent authority relief arising under the application
and interpretation of tax treaties between the United States and other countries, see Rev.
Proc. 96–13. However, competent authority consideration for an advance pricing agree-
ment should be requested under Rev. Proc. 96–53.
Issues under the jurisdiction .05 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs & Special
of the Associate Chief Counsel Industries) include those that involve income taxes of S corporations (except accounting
(Passthroughs & Special Industries) periods and methods) and certain noncorporate taxpayers (including partnerships, common
trust funds, and trusts); entity classification; estate, gift, generation-skipping transfer, and cer-
tain excise taxes; amortization, depreciation, depletion, and other engineering issues; account-
ing method changes for depreciation and amortization; cooperative housing corporations;
farmers’ cooperatives (under § 521); the low-income housing, disabled access, and qualified
electric vehicle credits; research and experimental expenditures; shipowners’ protection and
indemnity associations (under § 526); and certain homeowners associations (under § 528).
Issues under the jurisdiction .06 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and
of the Associate Chief Counsel Administration) include only those that involve federal tax procedure and administration;
(Procedure and Administration) disclosure and privacy law; reporting and paying taxes; assessing and collecting taxes
(including interest and penalties); abating, crediting, or refunding overassessments or
overpayments of tax; and filing information returns.
Sec. 3.06
2001–1 I.R.B. 11 January 2, 2001
Issues under the jurisdiction .07 Issues under the jurisdiction of the Division Counsel/Associate Chief Counsel (Tax
of the Division Counsel/ Exempt and Government Entities) include those that involve income tax and other tax
Associate Chief Counsel aspects of executive compensation and employee benefit programs (other than those with-
(Tax Exempt and in the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division);
Government Entities) employment taxes; taxes on self-employment income; tax-exempt obligations; mortgage
credit certificates; Qualified Zone Academy Bonds (QZADS); and federal, state, local, and
Indian tribal governments.
SECTION 4. ON WHAT
ISSUES MUST WRITTEN
GUIDANCE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?
Alcohol, tobacco, and .01 The procedures for obtaining letter rulings, etc., that apply to federal alcohol, tobac-
firearms taxes co, and firearms taxes under subtitle E of the Code are under the jurisdiction of the Bureau
of Alcohol, Tobacco and Firearms.
Employee plans and .02 The procedures for obtaining letter rulings, determination letters, etc., on employee
exempt organizations plans and exempt organizations are under the jurisdiction of the Commissioner, Tax
Exempt and Government Entities Division. See Rev. Proc. 2001–4, this Bulletin. See also
Rev. Proc. 2001–6, this Bulletin, for the procedures for issuing determination letters on the
qualified status of pension, profit-sharing, stock bonus, annuity, and employee stock own-
ership plans under §§ 401, 403(a), 409, and 4975(e)(7), and the status for exemption of
any related trusts or custodial accounts under § 501(a).
For the user fee requirements applicable to requests for letter rulings, determination let-
ters, etc., under the jurisdiction of the Commissioner, Tax Exempt and Government
Entities Division, see Rev. Proc. 2001–8, this Bulletin.
SECTION 5. UNDER WHAT

CIRCUMSTANCES DOES
THE NATIONAL OFFICE
In income and gift tax matters .01 In income and gift tax matters, the national office generally issues a letter ruling on
a proposed transaction and on a completed transaction if the letter ruling request is sub-
mitted before the return is filed for the year in which the transaction that is the subject of
the request was completed.
(1) Circumstances under which a letter ruling is not ordinarily issued. The nation-
al office ordinarily does not issue a letter ruling if, at the time the letter ruling is request-
ed, the identical issue is involved in the taxpayer’s return for an earlier period and that
issue—
(a) is being examined by a director;
(b) is being considered by an area office;
(c) is pending in litigation in a case involving the taxpayer or a related taxpayer;
(d) has been examined by a director or considered by an area office and the statutory
period of limitations on assessment or on filing a claim for refund or credit of tax has not
expired; or
(e) has been examined by a director or considered by an area office and a closing agree-
ment covering the issue or liability has not been entered into by a director or by an area
office.
Sec. 3.07
January 2, 2001 12 2001–1 I.R.B.
If a return dealing with an issue for a particular year is filed while a request for a letter
ruling on that issue is pending, the national office will issue the letter ruling unless it is
notified by the taxpayer or otherwise learns that an examination of that issue or the iden-
tical issue on an earlier year’s return has been started by a director. See section 8.04 of this
revenue procedure. However, even if an examination has begun, the national office ordi-
narily will issue the letter ruling if the director agrees, by memorandum, to the issuance of
the letter ruling.
(2) No letter ruling on a property conversion after return filed. The national office
does not issue a letter ruling on the replacement of involuntarily converted property,
whether or not the property has been replaced, if the taxpayer has already filed a return for
the taxable year in which the property was converted. However, the director may issue a
determination letter in this case. See section 6.01 of this revenue procedure.
(3) Certain late S corporation and related elections. In lieu of requesting a letter rul-
ing under this revenue procedure, a taxpayer may obtain relief for certain late S corpora-
tion and related elections by following the procedures in Rev. Proc. 98–55, 1998–2 C.B.
643, or Rev. Proc. 97–48, 1997–2 C.B. 521. A request made pursuant to Rev. Proc. 98–55
or Rev. Proc. 97–48 does not require payment of any user fee. See section 3.05 of Rev.
Proc. 98–55, section 3 of Rev. Proc. 97–48, and section 15.03(2) of this revenue proce-
dure.
A § 301.9100 request for .02 The national office will consider a request for an extension of time for making an
extension of time for election or other application for relief under § 301.9100–3 of the Procedure and
making an election or Administration Regulations. Even if submitted after the return covering the issue pre-
for other relief sented in the § 301.9100 request has been filed and even if submitted after an examination
of the return has begun or after the issues in the return are being considered by an area
office or a federal court, a § 301.9100 request is a letter ruling request. Therefore, the
§ 301.9100 request should be submitted pursuant to this revenue procedure.
However, an election made pursuant to § 301.9100–2 is not a letter ruling request and
does not require payment of any user fee. See § 301.9100–2(d) and section 15.03(1) of
this revenue procedure. Such an election pertains to an automatic extension of time.
(1) Format of request. A § 301.9100 request (other than an election made pursuant to
§ 301.9100–2) must be in the general form of, and meet the general requirements for, a let-
ter ruling request. These requirements are given in section 8 of this revenue procedure. In
addition, the § 301.9100 request must include the information required by
§ 301.9100–3(e).
(2) Period of limitations. The running of any applicable period of limitations is not
suspended for the period during which a § 301.9100 request has been filed. See
§ 301.9100–3(d)(2). If the period of limitations on assessment under § 6501(a) for the tax-
able year in which an election should have been made or any taxable year that would have
been affected by the election had it been timely made will expire before receipt of a
§ 301.9100 letter ruling, the Service ordinarily will not issue a § 301.9100 ruling. See
§ 301.9100–3(c)(1)(ii). Therefore, the taxpayer must secure a consent under § 6501(c)(4)
to extend the period of limitations on assessment. Note that the filing of a claim for refund
under § 6511 does not extend the period of limitations on assessment. If § 301.9100 relief
is granted, the Service may require the taxpayer to consent to an extension of the period
of limitations on assessment. See § 301.9100–3(d)(2).
(3) Taxpayer must notify national office if examination of return begins while
request is pending. If the Service starts an examination of the taxpayer’s return for the
taxable year in which an election should have been made or any taxable year that would
have been affected by the election had it been timely made while a § 301.9100 request is
pending, the taxpayer must notify the national office. See § 301.9100–3(e)(4)(i) and sec-
tion 8.04(1)(b) of this revenue procedure.
Sec. 5.02
2001–1 I.R.B. 13 January 2, 2001
(4) National office will notify the director, appeals officer, or government counsel
of a § 301.9100 request if return is being examined by a field office or is being con-
sidered by an area office or a federal court. If the taxpayer’s return for the taxable year
in which an election should have been made or any taxable year that would have been
affected by the election had it been timely made is being examined by a field office or con-
sidered by an area office or a federal court, the national office will notify the appropriate
director, appeals officer, or government counsel that a § 301.9100 request has been sub-
mitted to the national office. The examining officer, appeals officer, or government coun-
sel is not authorized to deny consideration of a § 301.9100 request. The letter ruling will
be mailed to the taxpayer and a copy will be sent to the appropriate Service official in the
operating division that has examination jurisdiction of the taxpayer’s tax return, appeals
officer, or government counsel.
Determinations under .03 Under Rev. Proc. 77–9, 1977–1 C.B. 542, the Office of Associate Chief Counsel
§ 999(d) of the (International) issues determinations under § 999(d) that may deny certain benefits of the
Internal Revenue Code foreign tax credit, deferral of earnings of foreign subsidiaries and domestic international
sales corporations (DISCs), and tax exemption for foreign trade income of a foreign sales
corporation or a small foreign sales corporation (FSC or small FSC) to a person, if that per-
son, a member of a controlled group (within the meaning of § 993(a)(3)) that includes the
person, or a foreign corporation of which a member of the controlled group is a United
States shareholder, agrees to participate in, or cooperate with, an international boycott.
Requests for determinations under Rev. Proc. 77–9 are letter ruling requests and, therefore,
should be submitted to the Associate Chief Counsel (International) pursuant to this rev-
enue procedure.
In matters involving § 367 .04 Unless the issue is covered by section 7 of this revenue procedure, the Office of
Associate Chief Counsel (International) may issue a letter ruling under § 367 even if the
taxpayer does not request a letter ruling as to the characterization of the transaction under
the reorganization provisions of the Code. The Office of Associate Chief Counsel
(International) will determine the § 367 consequences of a transaction based on the tax-
payer’s characterization of the transaction but will indicate in the letter ruling that it
expresses no opinion as to the characterization of the transaction under the reorganization.
However, the Office of Associate Chief Counsel (International) may decline to issue a
§ 367 ruling in situations in which the taxpayer inappropriately characterizes the transac-
tion under the reorganization provisions.
In estate tax matters .05 In general, the national office issues prospective letter rulings on transactions affect-
ing the estate tax on the prospective estate of a living person and affecting the estate tax
on the estate of a decedent before the decedent’s estate tax return is filed. The national
office will not issue letter rulings for prospective estates on computations of tax, actuarial
factors, and factual matters.
If the taxpayer is requesting a letter ruling regarding a decedent’s estate tax and the
estate tax return is due to be filed before the letter ruling is expected to be issued, the tax-
payer should obtain an extension of time for filing the return and should notify the nation-
al office branch considering the letter ruling request that an extension has been obtained.
If the return is filed before the letter ruling is received from the national office, the tax-
payer must disclose on the return that a letter ruling has been requested, attach a copy of
the pending letter ruling request to the return, and notify the national office that the return
has been filed. See section 8.04 of this revenue procedure. The national office will make
every effort to issue the letter ruling within 3 months of the date the return was filed.
If the letter ruling cannot be issued within that 3-month period, the national office will
notify the director having jurisdiction over the return, who may, by memorandum to the
national office, grant an additional period for the issuance of the letter ruling.
Sec. 5.02
January 2, 2001 14 2001–1 I.R.B.
In matters involving .06 In matters involving additional estate tax under § 2032A(c), the national office
additional estate tax issues letter rulings on proposed transactions and on completed transactions that occurred
under § 2032A(c) before the return is filed.
In matters involving .07 In matters involving qualified domestic trusts under § 2056A, the national office
qualified domestic trusts issues letter rulings on proposed transactions and on completed transactions that occurred
under § 2056A before the return is filed.
In generation-skipping .08 In general, the national office issues letter rulings on proposed transactions that
transfer tax matters affect the generation-skipping transfer tax and on completed transactions that occurred
before the return is filed. In the case of a generation-skipping trust or trust equivalent, let-
ter rulings are issued either before or after the trust or trust equivalent has been established.
The national office will issue letter rulings on the application of the effective date rules for
generation-skipping transfer tax (§ 1433 of the Tax Reform Act of 1986, 1986–3 (Vol. 1)
C.B. 1, 648) to wills, trusts, and trust equivalents in existence on October 22, 1986, and to
generation-skipping transfers taking place on or before October 22, 1986.
In employment and excise .09 In employment and excise tax matters, the national office issues letter rulings on
tax matters proposed transactions and on completed transactions either before or after the return is
filed for those transactions.
Requests regarding employment status (employer/employee relationship) from federal

agencies and instrumentalities should be submitted directly to the national office.
Requests regarding employment status from other taxpayers must first be submitted to the
appropriate Service office listed on the current Form SS-8 (Rev. June 1997). See section
6.04 of this revenue procedure. Generally, the employer is the taxpayer and requests the
letter ruling. However, if the worker asks for the letter ruling, both the worker and the
employer are considered to be the taxpayer and both are entitled to the letter ruling.
The national office usually will not issue a letter ruling if, at the time the letter ruling is request-
ed, the identical issue is involved in the taxpayer’s return for an earlier period and that issue—
(1) is being examined by a director;
(2) is being considered by an area office;
(3) is pending in litigation in a case involving the taxpayer or a related taxpayer;
(4) has been examined by a director or considered by an area office and the statutory
expired; or
(5) has been examined by a director or considered by an area office and a closing agree-
ment covering the issue or liability has not been entered into by a director or by an area
office.
If a return involving an issue for a particular year is filed while a request for a letter rul-
ing on that issue is pending, the national office will issue the letter ruling unless it is noti-
fied by the taxpayer or otherwise learns that an examination of that issue or an examina-
tion of the identical issue on an earlier year’s return has been started by a director. See
section 8.04 of this revenue procedure. However, even if an examination has begun, the
national office ordinarily will issue the letter ruling if the director agrees, by memoran-
dum, to the issuance of the letter ruling.
In administrative provisions .10

matters
(1) In general. The national office issues letter rulings on matters arising under the
Code and related statutes and regulations that involve—
Sec. 5.10
2001–1 I.R.B. 15 January 2, 2001
(a) the time, place, manner, and procedures for reporting and paying taxes;
(b) the assessment and collection of taxes (including interest and penalties);
(c) the abatement, credit, or refund of an overassessment or overpayment of tax; or
(d) the filing of information returns.
(2) Circumstances under which a letter ruling is not ordinarily issued. The nation-
al office ordinarily does not issue a letter ruling if, at the time the letter ruling is request-
issue—
(b) is being considered by an area office;
(c) is pending in litigation in a case involving the taxpayer or a related taxpayer;
(d) has been examined by a director or considered by an area office and the statutory
expired; or
(e) has been examined by a director or considered by an area office and a closing agree-
ment covering the issue or liability has not been entered into by a director or area office.
If a return involving an issue for a particular year is filed while a request for a letter rul-
ing on that issue is pending, the national office will issue the letter ruling unless it is noti-
fied by the taxpayer or otherwise learns that an examination of that issue or an examina-
tion of the identical issue on an earlier year’s return has been started by a director. See
section 8.04 of this revenue procedure. But, even if an examination has begun, the nation-
al office ordinarily will issue the letter ruling if the director agrees, by memorandum, to
the issuance of the letter ruling.
In Indian tribal government .11 Pursuant to Rev. Proc. 84–37, 1984–1 C.B. 513, as modified and made permanent by
matters Rev. Proc. 86–17, 1986–1 C.B. 550, and as supplemented by Rev. Proc. 92–19, 1992–1
C.B. 685, the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities) issues determinations recognizing a tribal entity as an Indian tribal
government within the meaning of § 7701(a)(40) or as a political subdivision of an Indian
tribal government under § 7871(d) if it determines, after consultation with the Secretary of
the Interior, that the entity satisfies the statutory definition of an Indian tribal government
or has been delegated governmental functions of an Indian tribal government. Requests
for determinations under Rev. Proc. 84–37 are letter ruling requests, and, therefore, should
be submitted to the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities) pursuant to this revenue procedure.
(1) Definition of Indian tribal government. The term “Indian tribal government” is
defined under § 7701(a)(40) to mean the governing body of any tribe, band, community,
village or group of Indians, or (if applicable) Alaska Natives, that is determined by the
Secretary of the Treasury, after consultation with the Secretary of the Interior, to exercise
governmental functions. Section 7871(d) provides that, for purposes of § 7871, a subdi-
vision of an Indian tribal government shall be treated as a political subdivision of a state
if the Secretary of the Treasury determines, after consultation with the Secretary of the
Interior, that the subdivision has been delegated the right to exercise one or more of the
substantial governmental functions of the Indian tribal government.
(2) Inclusion in list of tribal governments. Rev. Proc. 83–87, 1983–2 C.B. 606, as
modified and made permanent by Rev. Proc. 86–17, and as supplemented by Rev. Proc.
Sec. 5.10
January 2, 2001 16 2001–1 I.R.B.
92–19, provides a list of Indian tribal governments that are treated similarly to states for
certain federal tax purposes. Rev. Proc. 84–36, 1984–1 C.B. 510, as modified and made
permanent by Rev. Proc. 86–17, provides a list of political subdivisions of Indian tribal
governments that are treated as political subdivisions of states for certain federal tax pur-
poses. Under Rev. Proc. 84–37, tribal governments or subdivisions recognized under
§ 7701(a)(40) or § 7871(d) will be included on the list of recognized tribal government
entities in revised versions of Rev. Proc. 83–87 or Rev. Proc. 84–36.
Generally not to business .12 The national office does not issue letter rulings to business, trade, or industrial asso-
associations or groups ciations or to similar groups concerning the application of the tax laws to members of the
group. But groups and associations may submit suggestions of generic issues that would
be appropriately addressed in revenue rulings. See Rev. Proc. 89–14, which states the
objectives of, and standards for, the publication of revenue rulings and revenue procedures
in the Internal Revenue Bulletin.
The national office, however, may issue letter rulings to groups or associations on their
own tax status or liability if the request meets the requirements of this revenue procedure.
Generally not to .13 The national office does not issue letter rulings to foreign governments or their
foreign governments political subdivisions about the U.S. tax effects of their laws. The national office also does
not issue letter rulings on the effect of a tax treaty on the tax laws of a treaty country for
purposes of determining the tax of the treaty country. See section 13.02 of Rev. Proc.
96–13, 1996–1 C.B. at 626. However, treaty partners can continue to address matters such
as these under the provisions of the applicable tax treaty. In addition, the national office
may issue letter rulings to foreign governments or their political subdivisions on their own
tax status or liability under U.S. law if the request meets the requirements of this revenue
procedure.
Generally not on federal .14 The national office ordinarily does not issue letter rulings on a matter involving the
tax consequences of federal tax consequences of any proposed federal, state, local, municipal, or foreign
proposed legislation legislation. However, the Office of Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities) may issue letter rulings regarding the effect of proposed
state, local, or municipal legislation upon an eligible deferred compensation plan under
§ 457(b) provided that the letter ruling request relating to the plan complies with the other
requirements of this revenue procedure. The national office also may provide general
information in response to an inquiry.
Issuance of a letter ruling .15 Unless the issue is covered by section 7 of this revenue procedure, Rev. Proc. 2001–3,
before the issuance of a this Bulletin, or Rev. Proc. 2001–7, this Bulletin, a letter ruling may be issued before the
regulation or other issuance of a temporary or final regulation or other published guidance that interprets the
published guidance provisions of any act under the following conditions:
(1) Answer is clear or is reasonably certain. If the letter ruling request presents an
issue for which the answer seems clear by applying the statute to the facts or for which the
answer seems reasonably certain but not entirely free from doubt, a letter ruling will be
issued.
(2) Answer is not reasonably certain. The Service will consider all letter ruling
requests and use its best efforts to issue a letter ruling even if the answer does not seem
reasonably certain where the issuance of a letter ruling is in the best interests of tax admin-
istration.
(3) Issue cannot be readily resolved before a regulation or any other published
guidance is issued. A letter ruling will not be issued if the letter ruling request presents
an issue that cannot be readily resolved before a regulation or any other published guid-
ance is issued. However, when the Service has closed a regulation project or any other
published guidance project that might have answered the issue or decides not to open a
regulation project or any other published guidance project, the appropriate branch will
Sec. 5.15
2001–1 I.R.B. 17 January 2, 2001
consider all letter ruling requests unless the issue is covered by section 7 of this revenue
procedure, Rev. Proc. 2001–3, or Rev. Proc. 2001–7.

CIRCUMSTANCES DO
DIRECTORS ISSUE
Directors issue determination letters only if the question presented is specifically

answered by a statute, tax treaty, or regulation, or by a conclusion stated in a revenue rul-
ing, opinion, or court decision published in the Internal Revenue Bulletin.
In income and gift .01 In income and gift tax matters, directors issue determination letters in response to
tax matters taxpayers’ written requests on completed transactions that affect returns over which they
have examination jurisdiction. A determination letter usually is not issued for a question
concerning a return to be filed by the taxpayer if the same question is involved in a return
already filed.
Normally, directors do not issue determination letters on the tax consequences of pro-
posed transactions. However, a director may issue a determination letter on the replace-
ment, even though not yet made, of involuntarily converted property under § 1033, if the
taxpayer has filed an income tax return for the year in which the property was involuntar-
ily converted.
In estate tax matters .02 In estate tax matters, directors issue determination letters in response to written
requests affecting the estate tax returns over which the directors have examination juris-
diction. They do not issue determination letters on matters concerning the application of
the estate tax to the prospective estate of a living person.
In generation-skipping .03 In generation-skipping transfer tax matters, directors issue determination letters in
transfer tax matters response to written requests affecting the generation-skipping transfer tax returns over
which the directors have examination jurisdiction. They do not issue determination letters
on matters concerning the application of the generation-skipping transfer tax before the
distribution or termination takes place.
In employment and .04 In employment and excise tax matters, directors issue determination letters in
excise tax matters response to written requests from taxpayers on completed transactions over which they
have examination jurisdiction.
Requests for a determination of employment status (Form SS-8) from taxpayers (other
than federal agencies and instrumentalities) must be submitted to the appropriate Service
office listed on the current Form SS-8 (Rev. June 1997) and not directly to the national
office. See also section 5.09 of this revenue procedure.
Circumstances under which .05 A director will not issue a determination letter in response to any request if—
determination letters are
not issued by a director (1) it appears that the taxpayer has directed a similar inquiry to the national office;
(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case
in litigation or before an area office;
(3) the determination letter is requested by an industry, trade association, or similar

group; or
(4) the request involves an industry-wide problem.
Sec. 5.15
January 2, 2001 18 2001–1 I.R.B.
Under no circumstances will a director issue a determination letter unless it is clearly
shown that the request concerns a return that has been filed or is required to be filed and
over which the director has, or will have, examination jurisdiction.
A director will not issue a determination letter on an employment tax question if the spe-
cific question for the same taxpayer or a related taxpayer has been, or is being, considered by
the Central Office of the Social Security Administration or the Railroad Retirement Board.
A director also will not issue a determination letter on determining constructive sales
price under § 4216(b) or § 4218(c), which deal with special provisions applicable to the
manufacturers excise tax. The national office, however, will issue letter rulings in this
area. See section 7.05 of this revenue procedure.
Requests concerning income, .06 A request received by a director on a question concerning an income, estate, or gift
estate, or gift tax returns tax return already filed generally will be considered in connection with the examination of
the return. If a response is made to the request before the return is examined, it will be
considered a tentative finding in any later examination of that return.
Attach a copy of determination .07 A taxpayer who, before filing a return, receives a determination letter about any
letter to taxpayer’s return transaction that has been consummated and that is relevant to the return being filed should
attach a copy of the determination letter to the return when it is filed.
Review of determination letters .08 Determination letters issued under sections 6.01 through 6.04 of this revenue pro-
cedure are not reviewed by the national office before they are issued. If a taxpayer
believes that a determination letter of this type is in error, the taxpayer may ask the direc-
tor to reconsider the matter or to request technical advice from the national office as
explained in Rev. Proc. 2001–2, this Bulletin.

CIRCUMSTANCES DOES
THE SERVICE HAVE
DISCRETION TO ISSUE
LETTER RULINGS AND
Ordinarily not in certain areas .01 The Service ordinarily will not issue letter rulings or determination letters in certain
because of factual nature areas because of the factual nature of the problem involved or because of other reasons.
of the problem Rev. Proc. 2001–3 and Rev. Proc. 2001–7 provide a list of these areas. This list is not all-
inclusive because the Service may decline to issue a letter ruling or a determination letter
when appropriate in the interest of sound tax administration or on other grounds whenev-
er warranted by the facts or circumstances of a particular case.
Instead of issuing a letter ruling or determination letter, the national office or a director
may, when it is considered appropriate and in the best interests of the Service, issue an
information letter calling attention to well-established principles of tax law.
Not on alternative plans or .02 A letter ruling or a determination letter will not be issued on alternative plans of pro-
hypothetical situations posed transactions or on hypothetical situations.
Ordinarily not on part of .03 The national office ordinarily will not issue a letter ruling on only part of an inte-
an integrated transaction grated transaction. If, however, a part of a transaction falls under a no-rule area, a letter ruling on
other parts of the transaction may be issued. Before preparing the letter ruling request, a taxpay-
er should call the branch having jurisdiction for the matters on which the taxpayer is seeking a let-
ter ruling to discuss whether the national office will issue a letter ruling on part of the transaction.
If two or more items or sub-methods of accounting are interrelated, the national office
ordinarily will not issue a letter ruling on a change in accounting method involving only
one of the items or sub-methods.
Sec. 7.04
2001–1 I.R.B. 19 January 2, 2001
Ordinarily not on questions .04 A letter ruling or determination letter ordinarily will not be issued on questions
involving the validity of the involving the validity of the federal income tax and other taxes set forth in the Code, ques-
federal income tax or tions on the authority or jurisdiction of the Service to enforce the Code or collect infor-
similar matters mation, or similar matters.
On constructive sales price .05 The national office will issue letter rulings in all cases on the determination of a con-
under § 4216(b) or § 4218(c) structive sales price under § 4216(b) or § 4218(c) and in all other cases on prospective
transactions if the law or regulations require a determination of the effect of a proposed
transaction for tax purposes.
Ordinarily not on which of .06 A letter ruling or determination letter ordinarily will not be issued on which of two
two entities is a common entities, under common law rules applicable in determining the employer-employee
law employer relationship, is the employer, when one entity is treating the worker as an employee.
SECTION 8. WHAT ARE THE

GENERAL INSTRUCTIONS
RULINGS AND
This section explains the general instructions for requesting letter rulings and determi-
nation letters on all matters. Requests for letter rulings and determination letters require
the payment of the applicable user fee listed in Appendix A of this revenue procedure. For
additional user fee requirements, see section 15 of this revenue procedure.
Specific and additional instructions also apply to requests for letter rulings and determi-
nation letters on certain matters. Those matters are listed in section 9 of this revenue pro-
cedure followed by a reference (usually to another revenue procedure) where more infor-
mation can be obtained.
Certain information required .01

in all requests
Facts (1) Complete statement of facts and other information. Each request for a letter rul-
ing or a determination letter must contain a complete statement of all facts relating to the
transaction. These facts include—
(a) names, addresses, telephone numbers, and taxpayer identification numbers of all
interested parties. (The term “all interested parties” does not mean all shareholders of a
widely held corporation requesting a letter ruling relating to a reorganization or all
employees where a large number may be involved.);
(b) the annual accounting period, and the overall method of accounting (cash or accru-
al) for maintaining the accounting books and filing the federal income tax return, of all
interested parties;
(c) a description of the taxpayer’s business operations;
(d) a complete statement of the business reasons for the transaction; and
(e) a detailed description of the transaction.
The Service will usually not rule on only one step of a larger integrated transaction. See
section 7.03 of this revenue procedure. However, if such a letter ruling is requested, the
facts, circumstances, true copies of relevant documents, etc., relating to the entire transac-
tion must be submitted.
Sec. 7.04
January 2, 2001 20 2001–1 I.R.B.
Documents and foreign laws (2) Copies of all contracts, wills, deeds, agreements, instruments, other documents,
and foreign laws.
(a) Documents. True copies of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, and other documents pertinent to the transaction must
be submitted with the request.
If the request concerns a corporate distribution, reorganization, or similar transaction,

the corporate balance sheet and profit and loss statement should also be submitted. If the
request relates to a prospective transaction, the most recent balance sheet and profit and
loss statement should be submitted.
If any document, including any balance sheet and profit and loss statement, is in a lan-
guage other than English, the taxpayer must also submit a certified English translation of
the document, along with a true copy of the document. For guidelines on the acceptabili-
ty of such documents, see paragraph (c) of this section 8.01(2).
Each document, other than the request, should be labeled and attached to the request in
alphabetical sequence. Original documents, such as contracts, wills, etc., should not be
submitted because they become part of the Service’s file and will not be returned.
(b) Foreign laws. The taxpayer must submit with the request a copy of the relevant
parts of all foreign laws, including statutes, regulations, administrative pronouncements,
and any other relevant legal authority. The documents submitted must be in the official
language of the country involved and must be copied from an official publication of the
foreign government or another widely available, generally accepted publication. If
English is not the official language of the country involved, the taxpayer must also submit
a copy of an English language version of the relevant parts of all foreign laws. This trans-
lation must be: (i) from an official publication of the foreign government or another wide-
ly available, generally accepted publication; or (ii) a certified English translation submit-
ted in accordance with paragraph (c) of this section 8.01(2).
The taxpayer must identify the title and date of publication, including updates, of any
widely available, generally accepted publication that the taxpayer (or the taxpayer’s qual-
ified translator) uses as a source for the relevant parts of the foreign law.
(c) Standards for acceptability of submissions of documents in a language other

than English and certified English translations of laws in a language other than
English. The taxpayer must submit with the request an accurate and complete certified
English translation of the relevant parts of all contracts, wills, deeds, agreements, instru-
ments, trust documents, proposed disclaimers, or other documents in a language other than
English. If the taxpayer chooses to submit certified English translations of foreign laws,
those translations must be based on an official publication of the foreign government or
another widely available, generally accepted publication. In either case, the translation
must be that of a qualified translator and must be attested to by the translator. The attes-
tation must contain: (i) a statement that the translation submitted is a true and accurate
translation of the foreign language document or law; (ii) a statement as to the attestant’s
qualifications as a translator and as to that attestant’s qualifications and knowledge regard-
ing income tax matters; and (iii) the attestant’s name and address.
Analysis of material facts (3) Analysis of material facts. All material facts in documents must be included,
rather than merely incorporated by reference, in the taxpayer’s initial request or in sup-
plemental letters. These facts must be accompanied by an analysis of their bearing on the
issue or issues, specifying the provisions that apply.
Same issue in an earlier return (4) Statement regarding whether same issue is in an earlier return. The request
must state whether, to the best of the knowledge of both the taxpayer and the taxpayer’s
representatives, the same issue is in an earlier return of the taxpayer (or in a return for any
Sec. 8.01(4)
2001–1 I.R.B. 21 January 2, 2001
year of a related taxpayer within the meaning of § 267 or of a member of an affiliated
group of which the taxpayer is also a member within the meaning of § 1504).
If the statement is affirmative, it must specify whether the issue–
(b) has been examined, but the statutory period of limitations on assessment or on fil-
ing a claim for refund or credit of tax has not expired;
(c) has been examined, but a closing agreement covering the issue or liability has not
been entered into by a director;
(d) is being considered by an area office in connection with a return from an earlier period;
(e) has been considered by an area office in connection with a return from an earlier
period, but the statutory period of limitations on assessment or on filing a claim for refund
or credit of tax has not expired;
(f) has been considered by an area office in connection with a return from an earlier
period, but a closing agreement covering the issue or liability has not been entered into by
an area office; or
(g) is pending in litigation in a case involving the taxpayer or a related taxpayer.
Same or similar issue (5) Statement regarding whether same or similar issue was previously ruled on or
previously submitted or requested, or is currently pending. The request must also state whether, to the best of
currently pending the knowledge of both the taxpayer and the taxpayer’s representatives–
(a) the Service previously ruled on the same or a similar issue for the taxpayer (or a
related taxpayer within the meaning of § 267 or a member of an affiliated group of which
the taxpayer is also a member within the meaning of § 1504) or a predecessor;
(b) the taxpayer, a related taxpayer, a predecessor, or any representatives previously

submitted a request (including an application for change in accounting method) involving
the same or a similar issue to the Service but withdrew the request before a letter ruling or
determination letter was issued;
(c) the taxpayer, a related taxpayer, or a predecessor previously submitted a request

(including an application for change in accounting method) involving the same or a simi-
lar issue that is currently pending with the Service; or
(d) at the same time as this request, the taxpayer or a related taxpayer is presently sub-
mitting another request (including an application for change in accounting method) involv-
ing the same or a similar issue to the Service.
If the statement is affirmative for (a), (b), (c), or (d) of this section 8.01(5), the statement
must give the date the request was submitted, the date the request was withdrawn or ruled
on, if applicable, and other details of the Service’s consideration of the issue.
Interpretation of a substantive (6) Statement regarding interpretation of a substantive provision of an income or

provision of an income or estate tax treaty. If the request involves the interpretation of a substantive provision of
estate tax treaty an income or estate tax treaty, the request must also state whether–
(a) the tax authority of the treaty jurisdiction has issued a ruling on the same or similar
issue for the taxpayer, a related taxpayer (within the meaning of § 267 or a member of an
affiliated group of which the taxpayer is also a member within the meaning of § 1504), or
any predecessor;
Sec. 8.01(4)
January 2, 2001 22 2001–1 I.R.B.
(b) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is
being examined, or has been settled, by the tax authority of the treaty jurisdiction or is oth-
erwise the subject of a closing agreement in that jurisdiction; and
(c) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is
being considered by the competent authority of the treaty jurisdiction.
Letter from Bureau of Indian (7) Letter from Bureau of Indian Affairs relating to a letter ruling request for
Affairs relating to Indian recognition of Indian tribal government status or status as a political subdivision of
tribal government an Indian tribal government. To facilitate prompt action on a letter ruling request for
recognition of Indian tribal government status or status as a political subdivision of an
Indian tribal government, the taxpayer is encouraged to submit with the letter ruling
request a letter from the Department of the Interior, Bureau of Indian Affairs (“BIA”), ver-
ifying that the tribe is recognized by BIA as an Indian tribe and that the tribal government
exercises governmental functions or that the political subdivision of the Indian tribal gov-
ernment has been delegated substantial governmental functions. A letter ruling request
that does not contain this letter from BIA cannot be resolved until the Service obtains a let-
ter from BIA regarding the tribe’s status.
The taxpayer wishing to expedite the letter ruling process may send a request to verify
tribal status to the following address at BIA:
Branch of Tribal Government & Alaska

Division of Indian Affairs
Office of the Solicitor, Mail Stop 6456
U.S. Department of the Interior
1849 C Street, N.W.
Statement of authorities (8) Statement of supporting authorities. If the taxpayer advocates a particular con-
supporting taxpayer’s views clusion, an explanation of the grounds for that conclusion and the relevant authorities to
support it must be included. Even if not advocating a particular tax treatment of a pro-
posed transaction, the taxpayer must still furnish views on the tax results of the proposed
transaction and a statement of relevant authorities to support those views.
In all events, the request must include a statement of whether the law in connection with
the request is uncertain and whether the issue is adequately addressed by relevant author-
ities.
Statement of authorities (9) Statement of contrary authorities. The taxpayer is also encouraged to inform the
contrary to taxpayer’s views Service about, and discuss the implications of, any authority believed to be contrary to the
position advanced, such as legislation (or pending legislation), tax treaties, court decisions,
regulations, notices, revenue rulings, revenue procedures, or announcements. If the tax-
payer determines that there are no contrary authorities, a statement in the request to this
effect would be helpful. If the taxpayer does not furnish either contrary authorities or a
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 rul-
ing or determination letter.
Identifying and discussing contrary authorities will generally enable Service personnel
to understand the issue and relevant authorities more quickly. When Service personnel
receive the request, they will have before them the taxpayer’s thinking on the effect and
applicability of contrary authorities. This information should make research easier and
lead to earlier action by the Service. If the taxpayer does not disclose and distinguish sig-
nificant contrary authorities, the Service may need to request additional information,
which will delay action on the request.
Sec. 8.01(10)
2001–1 I.R.B. 23 January 2, 2001
Statement identifying pending (10) Statement identifying pending legislation. At the time of filing the request, the
legislation taxpayer must identify any pending legislation that may affect the proposed transaction. In
addition, if legislation is introduced after the request is filed but before a letter ruling or
determination letter is issued, the taxpayer must notify the Service.
Deletions statement required (11) Statement identifying information to be deleted from copy of letter ruling or
by § 6110 determination letter for public inspection. The text of letter rulings and determination
letters is open to public inspection under § 6110. The Service makes deletions from the
text before it is made available for inspection. To help the Service make the deletions
required by § 6110(c), a request for a letter ruling or determination letter must be accom-
panied by a statement indicating the deletions desired (“deletions statement”). If the dele-
tions statement is not submitted with the request, a Service representative will tell the tax-
payer that the request will be closed if the Service does not receive the deletions statement
within 21 calendar days. See section 10.06 of this revenue procedure.
(a) Format of deletions statement. A taxpayer who wants only names, addresses, and
identifying numbers to be deleted should state this in the deletions statement. If the tax-
payer wants more information deleted, the deletions statement must be accompanied by a
copy of the request and supporting documents on which the taxpayer should bracket the
material to be deleted. The deletions statement must indicate the statutory basis under
§ 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or deter-
mination letter is issued, additional deletions statements may be submitted.
(b) Location of deletions statement. The deletions statement must not appear in the
request, but instead must be made in a separate document and placed on top of the request
for a letter ruling or determination letter.
(c) Signature. The deletions statement must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature is not permitted.
(d) Additional information. The taxpayer should follow the same procedures above to
propose deletions from any additional information submitted after the initial request. An
additional deletions statement, however, is not required with each submission of addition-
al information if the taxpayer’s initial deletions statement requests that only names,
addresses, and identifying numbers are to be deleted and the taxpayer wants only the same
information deleted from the additional information.
(e) Taxpayer may protest deletions not made. After receiving from the Service the
notice under § 6110(f)(1) of intention to disclose the letter ruling or determination letter
(including a copy of the version proposed to be open to public inspection and notation of
third-party communications under § 6110(d)), the taxpayer may protest the disclosure of
certain information in the letter ruling or determination letter. The taxpayer must send a
written statement within 20 calendar days to the Service office indicated on the notice of
intention to disclose. The statement must identify those deletions that the Service has not
made and that the taxpayer believes should have been made. The taxpayer must also sub-
mit a copy of the version of the letter ruling or determination letter and bracket the dele-
tions proposed that have not been made by the Service. Generally, the Service will not
consider deleting any material that the taxpayer did not propose to be deleted before the
letter ruling or determination letter was issued.
Within 20 calendar days after the Service receives the response to the notice under
§ 6110(f)(1), the Service will mail to the taxpayer its final administrative conclusion
regarding the deletions to be made. The taxpayer does not have the right to a conference
to resolve any disagreements concerning material to be deleted from the text of the letter
ruling or determination letter. However, these matters may be taken up at any conference
that is otherwise scheduled regarding the request.
Sec. 8.01(11)
January 2, 2001 24 2001–1 I.R.B.
(f) Taxpayer may request delay of public inspection. After receiving the notice under
§ 6110(f)(1) of intention to disclose, but within 60 calendar days after the date of notice,
the taxpayer may send a request for delay of public inspection under either § 6110(g)(3)
or (4). The request for delay must be sent to the Service office indicated on the notice of
intention to disclose. A request for delay under § 6110(g)(3) must contain the date on
which it is expected that the underlying transaction will be completed. The request for
delay under § 6110(g)(4) must contain a statement from which the Commissioner of
Internal Revenue may determine that there are good reasons for the delay.
Signature on request (12) Signature by taxpayer or authorized representative. The request for a letter rul-
ing or determination letter must be signed and dated by the taxpayer or the taxpayer’s
authorized representative. A stamped signature is not permitted.
Authorized representatives (13) Authorized representatives. To sign the request or to appear before the Service
in connection with the request, the taxpayer’s authorized representative must be:
Attorney (a) An attorney who is a member in good standing of the bar of the highest court of any
state, possession, territory, commonwealth, or the District of Columbia and who is not cur-
rently under suspension or disbarment from practice before the Service. He or she must
file a written declaration with the Service showing current qualification as an attorney and
current authorization to represent the taxpayer;
Certified public accountant (b) A certified public accountant who is duly qualified to practice in any state, posses-
sion, territory, commonwealth, or the District of Columbia and who is not currently under
suspension or disbarment from practice before the Service. He or she must file a written
declaration with the Service showing current qualification as a certified public accountant
and current authorization to represent the taxpayer;
Enrolled agent (c) An enrolled agent who is a person, other than an attorney or certified public accoun-
tant, that is currently enrolled to practice before the Service and is not currently under sus-
pension or disbarment from practice before the Service. He or she must file a written dec-
laration with the Service showing current enrollment and authorization to represent the
taxpayer. Either the enrollment number or the expiration date of the enrollment card must
be included in the declaration. For the rules on who may practice before the Service, see
Treasury Department Circular No. 230 (31 C.F.R. part 10 (2000));
Enrolled actuary (d) An enrolled actuary who is a person, other than an attorney or certified public accoun-
tant, that is currently enrolled as an actuary by the Joint Board for the Enrollment of Actuaries
pursuant to 29 U.S.C. § 1242 and who is not currently under suspension or disbarment from
practice before the Service. He or she must file a written declaration with the Service show-
ing current qualification as an enrolled actuary and current authorization to represent the tax-
payer. Practice before the Service as an enrolled actuary is limited to representation with
respect to issues involving §§ 401, 403(a), 404, 412, 413, 414, 4971, 6057, 6058, 6059,
6652(e), 6652(f), 6692, and 7805(b); former § 405; and 29 U.S.C. § 1083; or
A person with a “Letter of (e) Any other person, including a foreign representative, who has received a “Letter of
Authorization” Authorization” from the Director of Practice under section 10.7(d) of Treasury Department
Circular No. 230. A person may make a written request for a “Letter of Authorization” to:
Office of Director of Practice, SC:DOP, Internal Revenue Service, 1111 Constitution
Avenue, N.W., Washington, D.C. 20224. Section 10.7(d) of Circular No. 230 authorizes
the Commissioner to allow an individual who is not otherwise eligible to practice before
the Service to represent another person in a particular matter.
Employee, general partner, (f) The above requirements do not apply to a regular full-time employee representing
bona fide officer, administrator, his or her employer; to a general partner representing his or her partnership; to a bona fide
trustee, etc. officer representing his or her corporation, association, or organized group; to a trustee,
receiver, guardian, personal representative, administrator, or executor representing a trust,
receivership, guardianship, or estate; or to an individual representing his or her immediate
Sec. 8.01(13)
2001–1 I.R.B. 25 January 2, 2001
family. A preparer of a return (other than a person referred to in paragraph (a), (b), (c), (d),
or (e) of this section 8.01(13)) who is not a full-time employee, general partner, bona fide
officer, an administrator, a trustee, etc., or an individual representing his or her immediate
family may not represent a taxpayer in connection with a letter ruling or a determination
letter. See section 10.7(c) of Treasury Department Circular No. 230.
Foreign representative (g) A foreign representative (other than a person referred to in paragraph (a), (b), (c),
(d), or (e) of this section 8.01(13)) is not authorized to practice before the Service and,
therefore, must withdraw from representing a taxpayer in a request for a letter ruling or a
determination letter. In this situation, the nonresident alien or foreign entity must submit
the request for a letter ruling or a determination letter on the individual’s or the entity’s
own behalf or through a person referred to in paragraph (a), (b), (c), (d), or (e) of this sec-
tion 8.01(13).
Power of attorney and (14) Power of attorney and declaration of representative. Any authorized represen-
declaration of representative tative, whether or not enrolled to practice, must also comply with the conference and prac-
tice requirements of the Statement of Procedural Rules (26 C.F.R. § 601.501–601.509
(2000)), which provide the rules for representing a taxpayer before the Service. It is pre-
ferred that Form 2848, Power of Attorney and Declaration of Representative, be used to
provide the representative’s authorization (Part I of Form 2848, Power of Attorney) and
the representative’s qualification (Part II of Form 2848, Declaration of Representative).
The name of the person signing Part I of Form 2848 should also be typed or printed on this
form. A stamped signature is not permitted. An original, a copy, or a facsimile transmis-
sion (fax) of the power of attorney is acceptable so long as its authenticity is not reason-
ably disputed. For additional information regarding the power of attorney form, see sec-
tion 8.02(2) of this revenue procedure.
For the requirement regarding compliance with Treasury Department Circular No. 230,
see section 8.08 of this revenue procedure.
Penalties of perjury statement (15) Penalties of perjury statement.
(a) Format of penalties of perjury statement. A request for a letter ruling or deter-
mination letter and any change in the request submitted at a later time must be accompa-
nied by the following declaration: “Under penalties of perjury, I declare that I have
examined [Insert, as appropriate: this request or this modification to the request],
including accompanying documents, and, to the best of my knowledge and belief,
[Insert, as appropriate: the request or the modification] contains all the relevant
facts relating to the request, and such facts are true, correct, and complete.”
See section 10.07(1) of this revenue procedure for the penalties of perjury statement
applicable for submissions of additional information.
(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer,
not the taxpayer’s representative. A stamped signature is not permitted.
The person who signs for a corporate taxpayer must be an officer of the corporate tax-
payer who has personal knowledge of the facts and whose duties are not limited to obtain-
ing a letter ruling or determination letter from the Service. If the corporate taxpayer is a
member of an affiliated group filing consolidated returns, a penalties of perjury statement
must also be signed and submitted by an officer of the common parent of the group.
The person signing for a trust, a state law partnership, or a limited liability company
must be, respectively, a trustee, general partner, or member-manager who has personal
knowledge of the facts.
Number of copies of request (16) Number of copies of request to be submitted. Generally, a taxpayer needs only
to be submitted to submit one copy of the request for a letter ruling or determination letter. If, however,
Sec. 8.01(13)
January 2, 2001 26 2001–1 I.R.B.
more than one issue is presented in the letter ruling request, the taxpayer is encouraged to
submit additional copies of the request.
Further, two copies of the request for a letter ruling or determination letter are required if—
(a) the taxpayer is requesting separate letter rulings or determination letters on different
issues as explained later under section 8.02(1) of this revenue procedure;
(b) the taxpayer is requesting deletions other than names, addresses, and identifying
numbers, as explained in section 8.01(11)(a) of this revenue procedure. (One copy is the
request for the letter ruling or determination letter and the second copy is the deleted ver-
sion of such request.); or
(c) a closing agreement (as defined in section 2.02 of this revenue procedure) is being
requested on the issue presented.
Sample of a letter ruling request (17) Sample format for a letter ruling request. To assist a taxpayer or the taxpayer’s rep-
resentative in preparing a letter ruling request, a sample format for a letter ruling request is
provided in Appendix B. This format is not required to be used by the taxpayer or the tax-
payer’s representative. If the letter ruling request is not identical or similar to the format in
Appendix B, the different format will not defer consideration of the letter ruling request.
Checklist (18) Checklist for letter ruling requests. The Service will be able to respond more quick-
ly to a taxpayer’s letter ruling request if the request is carefully prepared and complete. The
checklist in Appendix C of this revenue procedure is designed to assist taxpayers in preparing
a request by reminding them of the essential information and documents to be furnished with
the request. The checklist in Appendix C must be completed to the extent required by the
instructions in the checklist, signed and dated by the taxpayer or the taxpayer’s representative,
and placed on top of the letter ruling request. If the checklist in Appendix C is not received,
a branch representative will ask the taxpayer or the taxpayer’s representative to submit the
checklist, which may delay action on the letter ruling request.
For letter ruling requests on certain matters, specific checklists supplement the checklist in
Appendix C. These checklists are listed in section 9.01 of this revenue procedure and must also be
completed and placed on top of the letter ruling request along with the checklist in Appendix C.
Copies of the checklist in Appendix C can be obtained by calling (202) 622-7560 (not a toll-
free call) or a copy can be obtained from this revenue procedure in Internal Revenue Bulletin
2001–1 on the IRS web site at http://www.irs.ustreas.gov/prod/bus_info/bullet.html. A pho-
tocopy of this checklist may be used.
Additional information required .02

in certain circumstances
Multiple issues (1) To request separate letter rulings for multiple issues in a single situation. If
more than one issue is presented in a request for a letter ruling, the Service generally will
issue a single letter ruling covering all the issues. However, if the taxpayer requests sep-
arate letter rulings on any of the issues (because, for example, one letter ruling is needed
sooner than another), the Service will usually comply with the request unless it is not fea-
sible or not in the best interests of the Service to do so. A taxpayer who wants separate
letter rulings on multiple issues should make this clear in the request and submit two
copies of the request.
In issuing each letter ruling, the Service will state that it has issued separate letter rul-
ings or that requests for other letter rulings are pending.
Power of attorney (2) To designate recipient of original or copy of letter ruling or determination let-
ter. Unless the power of attorney provides otherwise, the Service will send the original of
Sec. 8.02(2)
2001–1 I.R.B. 27 January 2, 2001
the letter ruling or determination letter to the taxpayer and a copy of the letter ruling or
determination letter to the taxpayer’s representative. In this case, the letter ruling or deter-
mination letter is addressed to the taxpayer. It is preferred that Form 2848, Power of
Attorney and Declaration of Representative, be used to provide the representative’s autho-
rization. See section 8.01(14) of this revenue procedure.
Copies of letter ruling or (a) To have copies sent to multiple representatives. When a taxpayer has more than
determination letter sent to one representative, the Service will send the copy of the letter ruling or determination let-
multiple representatives ter to the first representative named on the most recent power of attorney. If the taxpayer
wants an additional copy of the letter ruling or determination letter sent to the second rep-
resentative listed in the power of attorney, the taxpayer must check the appropriate box on
Form 2848. If this form is not used, the taxpayer must state in the power of attorney that
a copy of the letter ruling or determination letter is to be sent to the second representative
listed in the power of attorney. Copies of the letter ruling or determination letter, howev-
er, will be sent to no more than two representatives.
Original of letter ruling or (b) To have original sent to taxpayer’s representative. A taxpayer may request that
determination letter sent to the original of the letter ruling or determination letter be sent to the taxpayer’s representa-
taxpayer’s representative tive. In this case, a copy of the letter ruling or determination letter will be sent to the tax-
payer. The letter ruling or determination letter is addressed to the taxpayer’s representa-
tive to whom the original is sent.
If the taxpayer wants the original of the letter ruling or determination letter sent to the tax-
payer’s representative, the taxpayer must check the appropriate box on Form 2848. If this
form is not used, the taxpayer must state in the power of attorney that the original of the let-
ter ruling or determination letter is to be sent to the taxpayer’s representative. When a tax-
payer has more than one representative, the Service will send the original of the letter ruling
or determination letter to the first representative named in the most recent power of attorney.
No copy of letter ruling or (c) To have no copy sent to taxpayer’s representative. If a taxpayer does not want a
determination letter sent to copy of the letter ruling or determination letter sent to any representative, the taxpayer
taxpayer’s representative must check the appropriate box on Form 2848. If this form is not used, the taxpayer must
state in the power of attorney that a copy of the letter ruling or determination letter is not
to be sent to any representative.
“Two-Part” letter ruling requests (3) To request a particular conclusion on a proposed transaction. A taxpayer who
is requesting a particular conclusion on a proposed transaction may make the request for
a letter ruling in two parts. This type of request is referred to as a “two-part” letter ruling
request. The first part must include the complete statement of facts and related documents
described in section 8.01 of this revenue procedure. The second part must include a sum-
mary statement of the facts the taxpayer believes to be controlling in reaching the conclu-
sion requested.
If the Service accepts the taxpayer’s statement of controlling facts, it will base its letter
ruling on these facts. Ordinarily, this statement will be incorporated into the letter ruling.
However, the Service reserves the right to rule on the basis of a more complete statement
of the facts and to seek more information in developing the facts and restating them.
A taxpayer who chooses this two-part procedure has all the rights and responsibilities
provided in this revenue procedure.
Taxpayers may not use the two-part procedure if it is inconsistent with other procedures,
such as those dealing with requests for permission to change accounting methods or peri-
ods, applications for recognition of exempt status under § 521, or rulings on employment
tax status.
Sec. 8.02(2)
January 2, 2001 28 2001–1 I.R.B.
After the Service has resolved the issues presented by a letter ruling request, the Service
representative may request that the taxpayer submit a proposed draft of the letter ruling to
expedite the issuance of the ruling. See section 10.09 of this revenue procedure.
Expedited handling (4) To request expedited handling. The Service ordinarily processes requests for
letter rulings and determination letters in order of the date received. Expedited han-
dling means that a request is processed ahead of the regular order. Expedited handling
is granted only in rare and unusual cases, both out of fairness to other taxpayers and
because the Service seeks to process all requests as expeditiously as possible and to
give appropriate deference to normal business exigencies in all cases not involving
expedited handling.
A taxpayer who has a compelling need to have a request processed ahead of the regular
order may request expedited handling. This request must explain in detail the need for
expedited handling. The request must be made in writing, preferably in a separate letter
with, or soon after filing, the request for the letter ruling or determination letter. If the
request is not made in a separate letter, then the letter in which the letter ruling or deter-
mination letter request is made should say, at the top of the first page: “Expedited
Handling Is Requested. See page ___ of this letter.”
A request for expedited handling will not be forwarded to a rulings branch for action
until the check for the user fee is received.
Whether a request for expedited handling will be granted is within the Service’s discretion.
The Service may grant the request when a factor outside a taxpayer’s control creates a real
business need to obtain a letter ruling or determination letter before a certain time in order to
avoid serious business consequences. Examples include situations in which a court or gov-
ernmental agency has imposed a specific deadline for the completion of a transaction, or a
transaction must be completed expeditiously to avoid an imminent business emergency (such
as the hostile takeover of a corporate taxpayer), provided that the taxpayer can demonstrate
that the deadline or business emergency, and the need for expedited handling, resulted from
circumstances that could not reasonably have been anticipated or controlled by the taxpayer.
To qualify for expedited handling in such situations, the taxpayer must also demonstrate that
the taxpayer submitted the request as promptly as possible after becoming aware of the dead-
line or emergency. The extent to which the letter ruling or determination letter complies with
all of the applicable requirements of this revenue procedure, and fully and clearly presents the
issues, is a factor in determining whether expedited treatment will be granted. When the
Service agrees to process a request out of order, it cannot give assurance that any letter ruling
or determination letter will be processed by the time requested.
The scheduling of a closing date for a transaction or a meeting of the board of directors
or shareholders of a corporation, without regard for the time it may take to obtain a letter
ruling or determination letter, will not be considered a sufficient reason to process a
request ahead of its regular order. Also, the possible effect of fluctuation in the market
price of stocks on a transaction will not be considered a sufficient reason to process a
request out of order.
Because most requests for letter rulings and determination letters cannot be
processed ahead of the regular order, the Service urges all taxpayers to submit their
requests well in advance of the contemplated transaction. In addition, to facilitate
prompt action on letter ruling requests, taxpayers are encouraged to ensure that their
initial submissions comply with all of the requirements of this revenue procedure
(including the requirements of other applicable guidelines set forth in section 9 of this
revenue procedure), to prepare “two-part” requests described in section 8.02(3) of this
revenue procedure when possible, and to provide any additional information requested
by the Service promptly.
Sec. 8.02(5)
2001–1 I.R.B. 29 January 2, 2001
Facsimile transmission (fax) of (5) To receive any document related to the letter ruling request by facsimile trans-
any document related to the mission (fax). If the taxpayer requests, a copy of any document related to the letter
letter ruling request ruling request may be faxed to the taxpayer or the taxpayer’s authorized representative
(for example, a request for additional information or the letter ruling). A letter ruling, how-
ever, is not issued until the ruling is mailed. See § 301.6110–2(h).
A request to fax a copy of any document related to the letter ruling request to the tax-
payer or the taxpayer’s authorized representative must be made in writing, either as part of
the original letter ruling request or prior to the mailing, or with respect to the letter ruling
prior to the signing, of the document. The request must contain the fax number of the tax-
payer or the taxpayer’s authorized representative to whom the document is to be faxed.
Because of the unsecured nature of a fax transmission, the national office will take certain
precautions to protect confidential information. For example, the national office will use a
cover sheet that identifies the intended recipient of the fax and the number of pages transmit-
ted, that does not identify the taxpayer by name or identifying number, and that contains a
statement prohibiting unauthorized disclosure of the document if a recipient of the faxed doc-
ument is not the intended recipient of the fax. Also, for example, the cover sheet should be
faxed in an order in which it will become the first page covering the faxed document.
Except for the letter ruling, the document will be faxed by a branch representative. The
letter ruling will be faxed by either a representative of the branch issuing the letter ruling
or the Communications, Records and User Fee Unit of the Technical Services staff
(CC:PA:T:CRU).
Fax of a letter ruling request (6) To submit a request for a letter ruling by fax. Original letter ruling requests by
fax are discouraged because such requests must be treated in the same manner as requests
by letter. For example, the faxed letter ruling request will not be forwarded to the rulings
branch for action until the check for the user fee is received.
Requests for a change in accounting method or a change in accounting period must not
be submitted by fax.
Requesting a conference (7) To request a conference. A taxpayer who wants to have a conference on the issues
involved should indicate this in writing when, or soon after, filing the request. See also
sections 11.01, 11.02, and 12.11(2) of this revenue procedure.
Substantially identical letter (8) To obtain the applicable user fee for substantially identical letter rulings or
rulings or identical identical accounting method changes. A taxpayer seeking the user fee provided in para-
accounting method changes graph (A)(5) of Appendix A of this revenue procedure for substantially identical letter rul-
ings or identical accounting method changes must provide the information required in sec-
tion 15.07 of this revenue procedure.
Address to send the request .03
Requests for letter rulings (1) Requests for letter rulings should be sent to the Associate Chief Counsel
(Corporate), the Associate Chief Counsel (Financial Institutions & Products), the
Associate Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel
(International), the Associate Chief Counsel (Passthroughs & Special Industries), the
Associate Chief Counsel (Procedure and Administration), or the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate.
The package should be marked: RULING REQUEST SUBMISSION.
(a) Requests for letter rulings should be sent to the following address:

Attn: CC:PA:T
P.O. Box 7604
Sec. 8.02(5)
January 2, 2001 30 2001–1 I.R.B.
Ben Franklin Station
However, if a private delivery service is used, the address is:

(b) Requests for letter rulings may also be hand delivered between the hours of 8:15
a.m. and 5:00 p.m. to the courier’s desk at the main entrance of 1111 Constitution Avenue,
N.W., Washington, D.C.. A receipt will be given at the courier’s desk. The package should
be addressed to:
Courier’s Desk
Requests for determination letters (2) Requests for determination letters
(a) If LMSB has or will have examination jurisdiction over the taxpayer’s tax return, the
taxpayer should send a request for a determination letter to the following address:

Attn: Manager, Office of Pre-Filing Services
Large and Mid-Size Business Division
C:LM:PFT:PF
Mint Building, 3rd Floor
(b) Other taxpayers should send a request for a determination letter to the appropriate direc-
tor whose office has or will have examination jurisdiction over the taxpayer’s return. The
appropriate director for a taxpayer under the jurisdiction of SB/SE is listed in Appendix D.
(c) For fees required with determination letter requests, see section 15 and Appendix A
of this revenue procedure.
Pending letter ruling requests .04
(1) Circumstances under which the taxpayer must notify the national office. The
taxpayer must notify the national office if, after the letter ruling request is filed but before
a letter ruling is issued, the taxpayer knows that—
(a) an examination of the issue or the identical issue on an earlier year’s return has been
started by a director;
(b) in the case of a § 301.9100 request, an examination of the return for the taxable year
in which an election should have been made or any taxable year that would have been
affected by the election had it been timely made has been started by a director. See
§ 301.9100–3(e)(4)(i) and section 5.02(3) of this revenue procedure;
(c) legislation that may affect the transaction has been introduced. See section 8.01(10)
of this revenue procedure; or
Sec. 8.04
2001–1 I.R.B. 31 January 2, 2001
(d) another letter ruling request (including an application for change in accounting method)
has been submitted by the taxpayer (or a related party within the meaning of § 267 or a mem-
ber of an affiliated group of which the taxpayer is also a member within the meaning of
§ 1504) involving the same or similar issue that is currently pending with the Service.
(2) Taxpayer must notify the national office if a return is filed and must attach the
request to the return. If the taxpayer files a return before a letter ruling is received from
the national office concerning the issue, the taxpayer must notify the national office that
the return has been filed. The taxpayer must also attach a copy of the letter ruling request
to the return to alert the field office and thereby avoid premature field action on the issue.
This section 8.04 also applies to pending requests for a closing agreement on a transac-
tion for which a letter ruling is not requested or issued, and for an advance pricing agree-
ment.
When to attach letter .05

ruling to return
A taxpayer who receives a letter ruling before filing a return about any transaction that
is relevant to the return being filed must attach a copy of the letter ruling to the return when
it is filed.
How to check on status .06

of request
The taxpayer or the taxpayer’s authorized representative may obtain information regard-
ing the status of a request by calling the person whose name and telephone number are
shown on the acknowledgment of receipt of the request or the appropriate branch repre-
sentative who contacts the taxpayer as explained in section 10.02 of this revenue procedure.
Request may be withdrawn .07

or national office may decline
to issue letter ruling (1) In general. A taxpayer may withdraw a request for a letter ruling or determination
letter at any time before the letter ruling or determination letter is signed by the Service.
Correspondence and exhibits related to a request that is withdrawn or related to a letter rul-
ing request for which the national office declines to issue a letter ruling will not be returned
to the taxpayer. See section 8.01(2) of this revenue procedure. In appropriate cases, the
Service may publish its conclusions in a revenue ruling or revenue procedure.
(2) Notification of appropriate Service official.
(a) Request to change an accounting method. If a taxpayer withdraws or the nation-

al office declines to grant (for any reason) a request to change from or to adopt an improp-
er method of accounting, the national office will notify, by memorandum, the appropriate
Service official in the operating division that has examination jurisdiction of the taxpay-
er’s tax return and the Change in Method of Accounting Technical Advisor, and may give
its views on the issues in the request to the Service official to consider in any later exam-
ination of the return.
(b) All other letter ruling requests. If a taxpayer withdraws a letter ruling request
(other than a request to change from or to adopt an improper method of accounting) or if
the national office declines to issue a letter ruling (other than a letter ruling pertaining to a
request to change from or to adopt an improper method of accounting), the national office
generally will notify, by memorandum, the appropriate Service official in the operating
division that has examination jurisdiction of the taxpayer’s tax return and may give its
views on the issues in the request to the Service official to consider in any later examina-
tion of the return. This section 8.07(2)(b) generally does not apply if the taxpayer with-
draws the letter ruling request and submits a written statement that the transaction has
been, or is being, abandoned and if the national office has not formed an adverse opinion.
Sec. 8.04
January 2, 2001 32 2001–1 I.R.B.
(c) Notification of Service official may constitute Chief Counsel Advice. If the
memorandum to the Service official referred to in paragraphs (a) and (b) of this section
8.07(2) provides more than the fact that the request was withdrawn and the national office
was tentatively adverse, or that the national office declines to grant a change in method of
accounting or issue a letter ruling, the memorandum would constitute Chief Counsel
Advice, as defined in § 6110(i)(1), subject to public inspection under § 6110. For exam-
ple, if the memorandum explains the national office’s reasoning for its tentatively adverse
position on the issues in the request, the memorandum would constitute Chief Counsel
Advice.
(3) Refunds of user fee. The user fee will not be returned for a letter ruling request
that is withdrawn. If the national office declines to issue a letter ruling on all of the issues
in the request, the user fee will be returned. If the national office, however, issues a letter
ruling on some, but not all, of the issues, the user fee will not be returned. See section
15.10 of this revenue procedure for additional information regarding the refunds of user
fees.
Compliance with Treasury .08

Department Circular No. 230
The taxpayer’s authorized representative, whether or not enrolled, must comply with
Treasury Department Circular No. 230, which provides the rules for practice before the
Service. In those situations when the national office believes that the taxpayer’s repre-
sentative is not in compliance with Circular No. 230, the national office will bring the mat-
ter to the attention of the Director of Practice.
For the requirement regarding compliance with the conference and practice require-
ments, see section 8.01(14) of this revenue procedure.
SECTION 9. WHAT OTHER

CHECKLISTS, GUIDELINE
REVENUE PROCEDURES,
NOTICES, SAFE HARBOR
REVENUE PROCEDURES,
AND AUTOMATIC CHANGE
REVENUE PROCEDURES
APPLY TO CERTAIN REQUESTS?
Specific revenue procedures and notices supplement the general instructions for
requests explained in section 8 of this revenue procedure and apply to requests for letter
rulings or determination letters regarding the Code sections and matters listed in this sec-
tion.
Checklists, guideline revenue .01 For requests relating to the following Code sections and subject matters, see the fol-
procedures, and notices lowing checklists, guideline revenue procedures, and notices.
CODE OR REGULATION SECTION REVENUE PROCEDURE AND NOTICE
103, 141-150, 7478, and 7871 Rev. Proc. 96–16, 1996–1 C.B. 630 (for a reviewable ruling under § 7478 and a nonre-
Issuance of state or local viewable ruling); Rev. Proc. 88–31, 1988–1 C.B. 832 (for approval of areas of chronic eco-
obligations nomic distress); and Rev. Proc. 82–26, 1982–1 C.B. 476 (for “on behalf of” and similar
issuers). For approval of areas of chronic economic distress, Rev. Proc. 88–31 explains
how this approval must be submitted to the Assistant Secretary for Housing/Federal
Housing Commissioner of the Department of Housing and Urban Development.
1.166–2(d)(3) Rev. Proc. 92–84, 1992–2 C.B. 489.

Uniform express
determination letter
for making election
Sec. 9.01
2001–1 I.R.B. 33 January 2, 2001
Subchapter C–Corporate Rev. Proc. 77–37, 1977–2 C.B. 568, as modified by Rev. Proc. 89–30, 1989–1 C.B. 895, and
Distributions and Adjustments as amplified by Rev. Proc. 77–41, 1977–2 C.B. 574, Rev. Proc. 83–81, 1983–2 C.B. 598
(see also Rev. Proc. 2001–3), Rev. Proc. 84–42, 1984–1 C.B. 521 (superseded as to no-
rule areas by Rev. Proc. 85–22, 1985–1 C.B. 550), Rev. Proc. 86–42, 1986–2 C.B. 722,
and Rev. Proc. 89–50, 1989–2 C.B. 631. But see section 3.01 of Rev. Proc. 2001–3 (cor-
porate distributions, transfers, and reorganizations under §§ 332, 351, 368(a)(1)(A),
368(a)(1)(B), 368(a)(1)(C), 368(a)(1)(E), and 368(a)(1)(F)), which describes certain cor-
porate reorganizations where the Service will not issue advance letter rulings or determi-
nation letters.
301 Rev. Proc. 87–22, 1987–1 C.B. 718.

Nonapplicability on sales of
stock of employer to defined
contribution plan
302, 311 Rev. Proc. 86–18, 1986–1 C.B. 551; and Rev. Proc. 77–41, 1977–2 C.B. 574.
Checklist questionnaire
302(b)(4) Rev. Proc. 81–42, 1981–2 C.B. 611.

331 Rev. Proc. 86–16, 1986–1 C.B. 546.

332 Rev. Proc. 90–52, 1990–2 C.B. 626.

351 Rev. Proc. 83–59, 1983–2 C.B. 575. But see section 3.01 of Rev. Proc. 2001–3, which
Checklist questionnaire describes certain transfers to controlled corporations where the Service will not issue
advance letter rulings or determination letters.
355 Rev. Proc. 96–30, 1996–1 C.B. 696.

368(a)(1)(E) Rev. Proc. 81–60, 1981–2 C.B. 680. But see section 3.01 of Rev. Proc. 2001–3, which
Checklist questionnaire describes circumstances under which the Service will not issue advance letter rulings or
determination letters as to whether a transaction constitutes a corporate recapitalization
within the meaning of § 368(a)(1)(E) (or a transaction that also qualifies under § 1036).
461(h) Rev. Proc. 92–29, 1992–1 C.B. 748.

Alternative method for the
inclusion of common
improvement costs in basis
482 Rev. Proc. 96–53, 1996–2 C.B. 375, as modified by Notice 98–65, 1998–2 C.B. 803.
Advance pricing agreements
521
Appeal procedure with regard Rev. Proc. 90–27, 1990–1 C.B. 514.
to adverse determination letters
and revocation or modification of
exemption letter rulings and
determination letters
1.817–5(a)(2) Rev. Proc. 92–25, 1992–1 C.B. 741.

Issuer of a variable contract
requesting relief
Sec. 9.01
January 2, 2001 34 2001–1 I.R.B.
877, 2107, and 2501(a)(3) Notice 97–19, 1997–1 C.B. 394, as modified by Notice 98–34, 1998–2 C.B. 29.
Individuals who lose U.S. citizenship
or cease to be taxed as long-term
U.S. residents with a principal
purpose to avoid U.S. taxes
1362(b)(5) and 1362(f) Rev. Proc. 98–55, 1998–2 C.B. 643; Rev. Proc. 97–48, 1997–2 C.B. 521.
Relief for late S corporation and
related elections under
certain circumstances
1.1502–13(e)(3) Rev. Proc. 97–49, 1997–2 C.B. 523.

Consent to treat intercompany
transactions on a separate entity
basis and revocation of this consent
1.1502–76(a)(1) Rev. Proc. 89–56, 1989–2 C.B. 643.

Consent to file a consolidated
return where member(s) of the
affiliated group use a 52-53
week taxable year
1504(a)(3)(A) and (B) Rev. Proc. 91–71, 1991–2 C.B. 900.

Waiver of application of
§ 1504(a)(3)(A) for
certain corporations
1552 Rev. Proc. 90–39, 1990–2 C.B. 365, as clarified by Rev. Proc. 90–39A, 1990–2 C.B. 367.
Consent to elect or change
method of allocating affiliated
group’s consolidated federal
income tax liability
4980B Rev. Proc. 87–28, 1987–1 C.B. 770 (treating references to former § 162(k) as if they were
references to § 4980B).
7701(a)(40) and 7871(d) Rev. Proc. 84–37, 1984–1 C.B. 513, as modified and made permanent by Rev. Proc. 86–17,
Indian tribal governments 1986–1 C.B. 550, and as supplemented by Rev. Proc. 92–19, 1992–1 C.B. 685 (provides
and subdivision of Indian guidelines for obtaining letter rulings recognizing Indian tribal government or tribal gov-
tribal governments ernment subdivision status; also provides for inclusion in list of recognized tribal govern-
ments in revised versions of Rev. Proc. 83–87, 1983–2 C.B. 606, as modified and made
permanent by Rev. Proc. 86–17, and as supplemented by Rev. Proc. 92–19, or in list of rec-
ognized subdivisions of Indian tribal governments in revised versions of Rev. Proc. 84–36,
1984–1 C.B. 510, as modified and made permanent by Rev. Proc. 86–17).
7702 Notice 99–48, 1999–38 I.R.B. 429.

Closing agreement for failed
life insurance contracts
7702A Rev. Proc. 99–27, 1999–1 C.B. 1186 (this revenue procedure is available only for requests
Relief for inadvertent non-egregious for relief received on or before May 31, 2001)
failure to comply with modified
endowment contract rules
7704(g) Notice 98–3, 1998–1 C.B. 333.

Revocation of election
Sec. 9.01
2001–1 I.R.B. 35 January 2, 2001
SUBJECT MATTERS REVENUE PROCEDURE
Accounting methods; Rev. Proc. 97–27, 1997–1 C.B. 680; and Rev. Proc. 2001–1 (this revenue procedure) for
obtaining consent to which sections 1, 2.01, 2.02, 2.06, 3.01, 3.02, 3.03, 3.05, 5.02, 5.12, 5.14, 7.01, 7.02, 7.03,
changes in method 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(8), 8.01(9), 8.01(10), 8.01(13),
8.01(14), 8.01(15), 8.02(2), 8.02(4), 8.02(5), 8.02(7), 8.02(8), 8.03(1), 8.04, 8.05, 8.06,
8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 10.10(2), 10.11, 11, 12.01, 12.02,
12.06–12.11, 15, and Appendix A are applicable.
Accounting periods; adopt, Rev. Proc. 87–32, 1987–2 C.B. 396, as modified by T.D. 8680, 1996–2 C.B. 194; and Rev.
retain or change for partnership, Proc. 2001–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.03, 5.02,
S corporation, and personal 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(8),
service corporation 8.01(9), 8.01(10), 8.01(13), 8.01(14), 8.01(15), 8.02(2), 8.02(4), 8.02(5), 8.02(7), 8.03(1)
(only for Forms 1128 filed under section 6.01 of Rev. Proc. 87–32), 8.04, 8.05, 8.06, 8.07,
8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 11, 12, 15, and Appendix A are applicable.
Accounting periods; changes Rev. Proc. 2000–11, 2000–3 I.R.B. 309; and Rev. Proc. 2001–1 (this revenue procedure) for
in period which sections 1, 2.01, 2.02, 2.06, 3.03, 5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2),
8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(8), 8.01(9), 8.01(10), 8.01(13), 8.01(14), 8.01(15),
8.02(2), 8.02(4), 8.02(5), 8.02(7), 8.03(1), 8.04, 8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04,
10.05, 10.07, 10.08, 11, 12, 15, and Appendix A are applicable.
Classification of liquidating trusts Rev. Proc. 82–58, 1982–2 C.B. 847, as modified and amplified by Rev. Proc. 94–45,
1994–2 C.B. 684, and as amplified by Rev. Proc. 91–15, 1991–1 C.B. 484 (checklist ques-
tionnaire), as modified and amplified by Rev. Proc. 94–45.
Earnings and profits determinations Rev. Proc. 75–17, 1975–1 C.B. 677; and Rev. Proc. 2001–1 (this revenue procedure) for
which sections 2.06, 3.03, 8, 10.04, 10.06, and 11.05 are applicable.
Estate, gift, and generation- Rev. Proc. 91–14, 1991–1 C.B. 482 (checklist questionnaire).
skipping transfer tax issues
Deferred intercompany transactions; Rev. Proc. 82–36, 1982–1 C.B. 490.

election not to defer gain or loss
Leveraged leasing Rev. Proc. 75–21, 1975–1 C.B. 715, as modified by Rev. Proc. 76–30, 1976–2 C.B. 647,
Rev. Proc. 79–48, 1979–2 C.B. 529, and Rev. Proc. 81–71, 1981–2 C.B. 731; and Rev.
Proc. 75–28, 1975–1 C.B. 752, as modified by Rev. Proc. 79–48 and Rev. Proc. 81–71.
Rate orders; regulatory A letter ruling request that involves a question of whether a rate order that is proposed or
agency; normalization issued by a regulatory agency will meet the normalization requirements of § 168(f)(2)
(pre-Tax Reform Act of 1986, § 168(e)(3)) and former §§ 46(f) and 167(l) ordinarily will
not be considered unless the taxpayer states in the letter ruling request whether—
(1) the regulatory authority responsible for establishing or approving the taxpayer’s
rates has reviewed the request and believes that the request is adequate and complete; and
(2) the taxpayer will permit the regulatory authority to participate in any national office
conference concerning the request.
If the taxpayer or the regulatory authority informs a consumer advocate of the request for a
letter ruling and the advocate wishes to communicate with the Service regarding the request,
any such communication should be sent to: Internal Revenue Service, Associate Chief
Counsel (Passthroughs & Special Industries), Attention CC:PA:T, P. O. Box 7604, Ben
Franklin Station, Washington, D.C. 20044 (or, if a private delivery service is used: Internal
Revenue Service, Associate Chief Counsel (Passthroughs & Special Industries), Attention
CC:PA:T, Room 6561, 1111 Constitution Avenue, N.W., Washington, D.C. 20224). These
communications will be treated as third party contacts for purposes of § 6110.
Sec. 9.01
January 2, 2001 36 2001–1 I.R.B.
Unfunded deferred compensation Rev. Proc. 71–19, 1971–1 C.B. 698, as amplified by Rev. Proc. 92–65, 1992–2 C.B. 428.
See Rev. Proc. 92–64, 1992–2 C.B. 422, for the model trust for use in Rabbi Trust
Arrangements.
Safe harbor revenue procedures .02 For requests relating to the following Code sections and subject matters, see the fol-
lowing safe harbor revenue procedures.
CODE OR REGULATION SECTION REVENUE PROCEDURE
103 and 141–150 Rev. Proc. 93–17, 1993–1 C.B. 507 (change of use of proceeds); Rev. Proc. 97–13, 1997–1
Issuance of state or local obligations C.B. 632 (management contracts); and Rev. Proc. 97–14, 1997–1 C.B. 634 (research agreements).
280B Rev. Proc. 95–27, 1995–1 C.B. 704.

Certain structural modifications
to a building not treated
as a demolition
355(a)(1)(B) Section 4.05(1)(b) of Rev. Proc. 96–30, 1996–1 C.B. 696, 705.
Transaction not violating
the device test
584(a) Rev. Proc. 92–51, 1992–1 C.B. 988.

Qualification of a proposed
common trust fund plan
642(c)(5) Rev. Proc. 88–53, 1988–2 C.B. 712.

Qualification of trusts as pooled
income funds
664(d)(1) Rev. Proc. 89–21, 1989–1 C.B. 842, as amplified by Rev. Proc. 90–32, 1990–1 C.B. 546.
Qualification of trusts as charitable
remainder annuity trusts
664(d)(2) Rev. Proc. 89–20, 1989–1 C.B. 841, as amplified by Rev. Proc. 90–30, 1990–1 C.B. 534.
Qualification of trusts as
charitable remainder unitrusts
664(d)(2) and (3) Rev. Proc. 90–31, 1990–1 C.B. 539.

Qualification of trusts as
charitable remainder unitrusts
1031(a) Rev. Proc. 2000–37, 2000–40 I.R.B. 308.

Qualification as a qualified
exchange accommodation
arrangement
1286 Rev. Proc. 91–50, 1991–2 C.B. 778.

Determination of reasonable
compensation under mortgage
servicing contracts
1362(f) Rev. Proc. 98–55, 1998–2 C.B. 643.

Automatic inadvertent
termination relief to
certain corporations
Sec. 9.02
2001–1 I.R.B. 37 January 2, 2001
20.2056A–2(d)(1)(i) and (d)(1)(ii) Rev. Proc. 96–54, 1996–2 C.B. 386.
Sample trust language
1.7704–2(d) Rev. Proc. 92–101, 1992–2 C.B. 579.

New business activity of
existing partnership is closely
related to pre-existing business
SUBJECT MATTERS REVENUE PROCEDURE
Certain rent-to-own contracts Rev. Proc. 95–38, 1995–2 C.B. 397.

treated as leases
Automatic change .03 For requests to change an accounting period or accounting method, see the follow-
revenue procedures ing automatic change revenue procedures published and/or in effect as of December 31,
2000. A taxpayer complying timely with an automatic change revenue procedure will be
deemed to have obtained the consent of the Commissioner to change the taxpayer’s
accounting period or accounting method, as applicable.
CODE SECTION REVENUE PROCEDURE
442 The automatic change revenue procedures for obtaining a change in annual accounting
Changes in accounting periods period include: Rev. Proc. 2000–11, 2000–3 I.R.B. 309 (certain corporations that have not
changed their accounting period within the prior 6 calendar years or other specified time);
Rev. Proc. 87–32, 1987–2 C.B. 396, as modified by § 301.9100–3 (partnership, S corporation,
or personal service corporation seeking a natural business year or an ownership taxable year);
Rev. Proc. 68–41, 1968–2 C.B. 943, as modified by Rev. Proc. 81–40, 1981–2 C.B. 605 (trusts
held by certain fiduciaries needing a workload spread); and Rev. Proc. 66–50, 1966–2 C.B.
1260, as modified by Rev. Proc. 81–40 (individual seeking a calendar year).
446 The automatic change revenue procedures for obtaining a change in method of accounting
Changes in accounting methods include: Rev. Proc. 99–49, 1999–52 I.R.B. 725 (applies to the changes in methods of account-
ing that are described in the Appendix of Rev. Proc. 99–49 involving §§ 56, 162, 167, 168,
171, 174, 197, 263, 263A, 404, 446, 451, 454, 455, 461, 467, 471, 472, 475, 585, 1272, 1273,
1278, and 1281, and former § 168), as modified and amplified by Rev. Proc. 2001–10, 2001–2
I.R.B. 272 (qualifying taxpayers with average annual gross receipts of $1 million or less seek-
ing to change from an accrual method to the cash method or from an inventory method to a
method complying with § 1.162–3; this revenue procedure is effective for taxable years end-
ing on or after December 17, 1999), Rev. Proc. 2000–50, 2000–52 I.R.B. 601 (taxpayers seek-
ing to change their treatment of certain computer software costs), Rev. Proc. 2000–38,
2000–40 I.R.B. 310 (certain taxpayers seeking to change to any of the three permissible meth-
ods of accounting for distributor commissions prescribed in Rev. Proc. 2000–38), Rev. Rul.
2000–7, 2000–9 I.R.B. 712 (certain taxpayers seeking to change their method of accounting
for removal costs to conform with the holding in Rev. Rul. 2000–7), Rev. Rul. 2000–4,
2000–4 I.R.B. 331 (certain taxpayers seeking to change their method of accounting for ISO
9000 certification costs to conform with the holding in Rev. Rul. 2000–4), and Notice 2000–4,
2000–3 I.R.B. 313 (certain taxpayers seeking to change their method of accounting for depre-
ciation of MACRS property acquired in a transaction to which § 1031 or § 1033 applies); Rev.
Proc. 98–58, 1998–2 C.B. 710 (certain taxpayers seeking to change to the installment method
of accounting under § 453 for alternative minimum tax purposes for certain deferred payment
sales contracts relating to property used or produced in the trade or business of farming); Rev.
Proc. 97–43, 1997–2 C.B. 494 (certain taxpayers required to change their method of account-
ing as a result of making elections out of certain exemptions from dealer status for purposes
of § 475); Rev. Proc. 92–67, 1992–2 C.B. 429 (certain taxpayers with one or more market dis-
count bonds seeking to make a § 1278(b) election or a constant interest rate election); Rev.
Proc. 92–29, 1992–1 C.B. 748 (certain taxpayers seeking to use an alternative method under
§ 461(h) for including common improvement costs in basis); and Rev. Proc. 91–51, 1991–2
Sec. 9.03
January 2, 2001 38 2001–1 I.R.B.
C.B. 779 (certain taxpayers under examination that sell mortgages and retain rights to service
the mortgages).
SECTION 10. HOW DOES

THE NATIONAL OFFICE
HANDLE LETTER
RULING REQUESTS?
The national office will issue letter rulings on the matters and under the circumstances
explained in sections 3 and 5 of this revenue procedure and in the manner explained in this
section and section 11 of this revenue procedure.
Controls request and refers .01 All requests for letter rulings will be controlled by the Technical Services staff of
it to appropriate Associate the Associate Chief Counsel (Procedure and Administration) (CC:PA:T). That office will
Chief Counsel’s office or examine the incoming documents for completeness, process the user fee, and forward the
Assistant Chief Counsel’s office file to the appropriate Associate Chief Counsel’s office or, for letter ruling requests under the
jurisdiction of the Associate Chief Counsel (Procedure and Administration) or the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), to the appropriate
Assistant Chief Counsel. The Associate Chief Counsel’s office or the Assistant Chief
Counsel’s office, as appropriate, will assign the letter ruling request to one of its branches.
Branch representative contacts .02 Within 21 calendar days after a letter ruling request has been received in the branch
taxpayer within 21 days having jurisdiction, a representative of the branch will discuss the procedural issues in the letter
ruling request with the taxpayer or, if the request includes a properly executed power of attor-
ney, with the authorized representative unless the power of attorney provides otherwise. If the
case is complex or a number of issues are involved, it may not be possible for the branch repre-
sentative to discuss the substantive issues during this initial contact. However, when possible,
for each issue within the branch’s jurisdiction, the branch representative will tell the taxpayer—
(1) whether the branch representative will recommend that the Service rule as the tax-
payer requested, rule adversely on the matter, or not rule;
(2) whether the taxpayer should submit additional information to enable the Service to
rule on the matter; or
(3) whether, because of the nature of the transaction or the issue presented, a tentative
conclusion on the issue cannot be reached.
Except for cases involving a request for change in accounting method or account-
ing period, the 21 calendar day procedure applies to: all matters within the jurisdic-
tion of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Income
Tax & Accounting), the Associate Chief Counsel (International), the Associate Chief
Counsel (Passthroughs & Special Industries), the Associate Chief Counsel (Procedure
and Administration), and the Division Counsel/Associate Chief Counsel (Tax Exempt
and Government Entities); and all matters within the jurisdiction of the Associate
Chief Counsel (Financial Institutions & Products), except cases concerning insurance
issues requiring actuarial computations.
Notifies taxpayer if any issues .03 If the letter ruling request involves matters within the jurisdiction of more than one
have been referred to another branch or office, a representative of the branch that received the original request will tell
branch or office the taxpayer within the initial 21 days—
(1) that the matters within the jurisdiction of another branch or office have been referred
to that branch or office for consideration; and
(2) that a representative of that branch or office will contact the taxpayer within 21 cal-
endar days after receiving the referral to discuss informally the procedural and, to the
extent possible, the substantive issues in the request.
Sec. 10.04
2001–1 I.R.B. 39 January 2, 2001
Determines if transaction .04 If a less than fully favorable letter ruling is indicated, the branch representative will
can be modified to obtain tell the taxpayer whether minor changes in the transaction or adherence to certain pub-
favorable letter ruling lished positions would bring about a favorable ruling. The branch representative may also
tell the taxpayer the facts that must be furnished in a document to comply with Service
requirements. However, the branch representative will not suggest precise changes that
would materially alter the form of the proposed transaction or materially alter a taxpayer’s
proposed accounting method or accounting period.
If, at the end of this discussion, the branch representative determines that a meeting in
the national office would be more helpful to develop or exchange information, a meeting
will be offered and an early meeting date arranged. When offered, this meeting is in addi-
tion to the taxpayer’s conference of right that is described in section 11.02 of this revenue
procedure.
Is not bound by informal .05 The Service will not be bound by the informal opinion expressed by the branch rep-
opinion expressed resentative or any other authorized Service representative, and such an opinion cannot be
relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).
Tells taxpayer if request lacks .06 If a request for a letter ruling does not comply with all the provisions of this rev-
essential information during enue procedure, the branch representative will tell the taxpayer during the initial contact
initial contact which requirements have not been met.
Information must be submitted (1) If the request lacks essential information, which may include additional information
within 21 calendar days needed to satisfy the procedural requirements of this revenue procedure as well as sub-
stantive changes to transactions or documents needed from the taxpayer, the branch repre-
sentative will tell the taxpayer during the initial contact that the request will be closed if
the Service does not receive the information within 21 calendar days unless an extension
of time is granted. See sections 10.07(1), (2), and (3) of this revenue procedure for instruc-
tions on submissions of additional information. To facilitate prompt action on letter rul-
ing requests, taxpayers are encouraged to request that the Service request additional infor-
mation by fax. See section 8.02(5) of this revenue procedure.
21-day period will be extended (2) An extension of the 21-day period will be granted only if justified in writing by the
if justified and approved taxpayer and approved by the branch chief, senior technician reviewer (or senior techni-
cal reviewer), or assistant to the branch chief (or assistant branch chief) of the branch to
which the case is assigned. A request for extension should be submitted before the end
of the 21-day period. If unusual circumstances close to the end of the 21-day period make
a written request impractical, the taxpayer should notify the national office within the 21-
day period that there is a problem and that the written request for extension will be com-
ing soon. The taxpayer will be told promptly, and later in writing, of the approval or
denial of the requested extension. If the extension request is denied, there is no right of
appeal.
Letter ruling request closed if (3) If the taxpayer does not submit the information requested during the initial contact
the taxpayer does not within the time provided, the letter ruling request will be closed and the taxpayer will be
submit information notified in writing. If the information is received after the request is closed, the
request will be reopened and treated as a new request as of the date the information
is received. However, the taxpayer must pay another user fee before the case can be
reopened.
Letter ruling request mistakenly (4) A request for a letter ruling sent to a director will be returned by the director so that
sent to a director the taxpayer can send it to the national office.
Requires prompt submission of .07

additional information requested
after initial contact (1) Material facts furnished to the Service by telephone or fax, or orally at a conference,
must be promptly confirmed by letter to the Service. This confirmation and any addition-
al information requested by the Service that is not part of the information requested dur-
Sec. 10.05
January 2, 2001 40 2001–1 I.R.B.
ing the initial contact must be furnished within 21 calendar days to be considered part of
the request.
Additional information submitted to the Service must be accompanied by the following

declaration: “Under penalties of perjury, I declare that I have examined this infor-
mation, including accompanying documents, and, to the best of my knowledge and
belief, the information contains all the relevant facts relating to the request for the
information, and such facts are true, correct, and complete.” This declaration must be
signed in accordance with the requirements in section 8.01(15)(b) of this revenue proce-
dure. A taxpayer who submits additional factual information on several occasions may
provide one declaration subsequent to all submissions that refers to all submissions.
To facilitate prompt action on letter ruling requests, taxpayers are encouraged to request that
the Service request additional information by fax. See section 8.02(5) of this revenue proce-
dure. Taxpayers also are encouraged to submit additional information by fax as soon as the
information is available. The Service representative who requests additional information can
provide a telephone number to which the information can be faxed. A copy of this informa-
tion and a signed perjury statement, however, must be mailed or delivered to the Service.
Address to send additional (2)(a) If a private delivery service is not used, the additional information should be sent to:
information
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Service
representative who requested
the information]
P.O. Box 7604
However, for cases involving a request for change in accounting method or period under
the jurisdiction of the Associate Chief Counsel (Income Tax & Accounting), and a § 301.9100
request for an extension of time on such cases, the additional information should be sent to:

the information]
P.O. Box 14095
(b) If a private delivery service is used, the additional information for all cases should
be sent to:

the information]
Sec. 10.07(4)
2001–1 I.R.B. 41 January 2, 2001
(c) For all cases, the additional information should include the name, office symbols,
and room number of the Service representative who requested the information, and the tax-
payer’s name and the case control number, which the Service representative can provide.
Number of copies of additional (3) Generally, a taxpayer needs only to submit one copy of the additional information.
information to be submitted However, in appropriate cases, the national office may request additional copies of the
information.
21-day period will be extended (4) An extension of the 21-day period will be granted only if justified in writing by the
if justified and approved taxpayer and approved by the branch chief, senior technician reviewer (or senior technical
reviewer), or assistant to the branch chief (or assistant branch chief) of the branch to which
the case is assigned. A request for extension should be submitted before the end of the 21-
day period. If unusual circumstances close to the end of the 21-day period make a written
request impractical, the taxpayer should notify the national office within the 21-day peri-
od that there is a problem and that the written request for extension will be coming soon.
The taxpayer will be told promptly, and later in writing, of the approval or denial of the
requested extension. If the extension request is denied, there is no right of appeal.
If taxpayer does not submit (5) If the taxpayer does not follow the instructions for submitting additional informa-
additional information tion or requesting an extension within the time provided, a letter ruling will be issued on
the basis of the information on hand or, if appropriate, no letter ruling will be issued.
When the Service decides not to issue a letter ruling because additional information was
not timely submitted, the case will be closed and the taxpayer notified in writing. If the
Service receives the information after the letter ruling request is closed, the request
may be reopened and treated as a new request. However, the taxpayer must pay
another user fee before the case can be reopened.
Near the completion of the .08 Generally, after the conference of right is held but before the letter ruling is issued,
ruling process, advises the the branch representative will inform the taxpayer or the taxpayer’s representative of the
taxpayer of conclusions and, Service’s conclusions. If the Service is going to rule adversely, the taxpayer will be
if the Service will rule adversely, offered the opportunity to withdraw the letter ruling request. If the taxpayer or the tax-
offers the taxpayer the payer’s representative does not promptly notify the branch representative of a decision to
opportunity to withdraw withdraw the ruling request, the adverse letter ruling will be issued. The user fee will not
the letter ruling request be refunded for a letter ruling request that is withdrawn. See section 8.07 of this revenue
procedure.
May request draft of proposed .09 To accelerate the issuance of letter rulings, in appropriate cases near the completion
letter ruling near the completion of the ruling process, the Service representative may request that the taxpayer or the tax-
of the ruling process payer’s representative submit a proposed draft of the letter ruling on the basis of discus-
sions of the issues. The taxpayer, however, is not required to prepare a draft letter ruling
to receive a letter ruling.
The format of the submission should be discussed with the Service representative who
requests the draft letter ruling. The representative usually can provide a sample format of
a letter ruling and will discuss the facts, analysis, and letter ruling language to be includ-
ed.
Taxpayer may also submit In addition to a typed draft, taxpayers are encouraged to submit this draft on a comput-
draft on a computer disk in er disk in a word processing format acceptable to the Service. The typed draft will become
a word processing format part of the permanent files of the national office, and the computer disk will not be
returned. If the Service representative requesting the draft letter ruling cannot answer spe-
cific questions about the word processing format, the questions can be directed to Wayne
Thomas at 202-622-7560 (not a toll-free call).
The proposed letter ruling (both typed draft and computer disk) should be sent to the
same address as any additional information and contain in the transmittal the information
Sec. 10.07(4)
January 2, 2001 42 2001–1 I.R.B.
that should be included with any additional information (for example, a penalties of per-
jury statement is required). See section 10.07 of this revenue procedure.
Issues separate letter rulings for .10

substantially identical letter
rulings and generally issues a (1) Substantially identical letter rulings. For letter ruling requests qualifying for the
single letter ruling for identical user fee provided in paragraph (A)(5)(a) of Appendix A of this revenue procedure for sub-
accounting method changes stantially identical letter rulings, a separate letter ruling will be issued for each entity with
a common member or sponsor, or for each member of a common entity.
(2) Identical accounting method changes and related § 301.9100 letter rulings. For
letter ruling requests qualifying for the user fee provided in paragraphs (A)(5)(b) and (c)
of Appendix A of this revenue procedure for identical accounting method changes and
related § 301.9100 letter rulings, a single letter ruling generally will be issued on behalf of
all members of a consolidated group that file a Form 3115, Application for Change in
Accounting Method, or that file a § 301.9100 request for an extension of time to file a
Form 3115. However, the branch to which the case is assigned may, at its discretion, issue
separate letter rulings for certain members or groups of members within a consolidated
group. For example, separate letter rulings may be issued if different terms and conditions
are required. Each letter ruling will include an attachment listing the § 481(a) adjustment
for each member to which the letter ruling applies.
Sends a copy of the letter .11 The national office will send a copy of the letter ruling, whether favorable or
ruling to appropriate adverse, to the appropriate Service official in the operating division that has examination
Service official jurisdiction of the taxpayer’s tax return.
SECTION 11. HOW ARE

CONFERENCES SCHEDULED?
Schedules a conference if .01 A taxpayer may request a conference regarding a letter ruling request. Normally, a
requested by taxpayer conference is scheduled only when the national office considers it to be helpful in decid-
ing the case or when an adverse decision is indicated. If conferences are being arranged
for more than one request for a letter ruling involving the same taxpayer, they will be
scheduled so as to cause the least inconvenience to the taxpayer. As stated in section
8.02(7) of this revenue procedure, a taxpayer who wants to have a conference on the issue
or issues involved should indicate this in writing when, or soon after, filing the request.
If a conference has been requested, the taxpayer will be notified by telephone, if possi-
ble, of the time and place of the conference, which must then be held within 21 calendar
days after this contact. Instructions for requesting an extension of the 21-day period and
notifying the taxpayer or the taxpayer’s representative of the Service’s approval or denial
of the request for extension are the same as those explained in section 10.07(4) of this rev-
enue procedure regarding providing additional information.
Permits taxpayer one .02 A taxpayer is entitled, as a matter of right, to only one conference in the national
conference of right office, except as explained under section 11.05 of this revenue procedure. This conference is
normally held at the branch level and is attended by a person who, at the time of the confer-
ence, has the authority to sign the letter ruling in his or her own name or for the branch chief.
When more than one branch has taken an adverse position on an issue in a letter ruling
request or when the position ultimately adopted by one branch will affect that adopted by
another, a representative from each branch with the authority to sign in his or her own
name or for the branch chief will attend the conference. If more than one subject is to be
discussed at the conference, the discussion will constitute a conference on each subject.
To have a thorough and informed discussion of the issues, the conference usually will
be held after the branch has had an opportunity to study the case. However, at the request
of the taxpayer, the conference of right may be held earlier.
Sec. 11.04
2001–1 I.R.B. 43 January 2, 2001
No taxpayer has a right to appeal the action of a branch to an associate or assistant chief
counsel or to any other official of the Service. But see section 11.05 of this revenue pro-
cedure for situations in which the Service may offer additional conferences.
In employment tax matters, only the party entitled to the letter ruling is entitled to a con-
ference. See section 5.09 of this revenue procedure.
Disallows verbatim recording .03 Because conference procedures are informal, no tape, stenographic, or other verba-
of conferences tim recording of a conference may be made by any party.
Makes tentative recommendations .04 The senior Service representative present at the conference ensures that the taxpay-
on substantive issues er has the opportunity to present views on all the issues in question. A Service represen-
tative explains the Service’s tentative decision on the substantive issues and the reasons for
that decision. If the taxpayer asks the Service to limit the retroactive effect of any letter
ruling or limit the revocation or modification of a prior letter ruling, a Service representa-
tive will discuss the recommendation concerning this issue and the reasons for the recom-
mendation. The Service representatives will not make a commitment regarding the con-
clusion that the Service will finally adopt.
May offer additional conferences .05 The Service will offer the taxpayer an additional conference if, after the conference
of right, an adverse holding is proposed, but on a new issue, or on the same issue but on
different grounds from those discussed at the first conference. There is no right to anoth-
er conference when a proposed holding is reversed at a higher level with a result less favor-
able to the taxpayer, if the grounds or arguments on which the reversal is based were dis-
cussed at the conference of right.
The limit on the number of conferences to which a taxpayer is entitled does not prevent
the Service from offering additional conferences, including conferences with an official
higher than the branch level, if the Service decides they are needed. Such conferences are
not offered as a matter of course simply because the branch has reached an adverse deci-
sion. In general, conferences with higher level officials are offered only if the Service
determines that the case presents significant issues of tax policy or tax administration and
that the consideration of these issues would be enhanced by additional conferences with
the taxpayer.
Requires written confirmation .06 The taxpayer should furnish to the national office any additional data, reasoning,
of information presented precedents, etc., that were proposed by the taxpayer and discussed at the conference but
at conference not previously or adequately presented in writing. The taxpayer must furnish the addi-
tional information within 21 calendar days from the date of the conference. See section
10.07 of this revenue procedure for instructions on submission of additional information.
If the additional information is not received within that time, a letter ruling will be issued
on the basis of the information on hand or, if appropriate, no ruling will be issued.
Procedures for requesting an extension of the 21-day period and notifying the taxpayer
or the taxpayer’s representative of the Service’s approval or denial of the requested exten-
sion are the same as those stated in section 10.07(4) of this revenue procedure regarding
submitting additional information.
May schedule a pre-submission .07 Sometimes it will be advantageous to both the Service and the taxpayer to hold a
conference conference before the taxpayer submits the letter ruling request to discuss substantive or
procedural issues relating to a proposed transaction. Such conferences are held only if the
identity of the taxpayer is provided to the Service, only if the taxpayer actually intends to
make a request, only if the request involves a matter on which a letter ruling is ordinarily
issued, and only at the discretion of the Service and as time permits. For example, a pre-
submission conference will not be held on an income tax issue if, at the time the pre-sub-
mission conference is requested, the identical issue is involved in the taxpayer’s return for
an earlier period and that issue is being examined by a director. See section 5.01(1) of this
Sec. 11.04
January 2, 2001 44 2001–1 I.R.B.
revenue procedure. A letter ruling request submitted following a pre-submission confer-
ence will not necessarily be assigned to the branch that held the pre-submission confer-
ence. Also, when a letter ruling request is not submitted following a pre-submission con-
ference, the national office may notify, by memorandum, the appropriate Service official
in the operating division that has examination jurisdiction of the taxpayer’s tax return and
may give its views on the issues raised during the pre-submission conference. This mem-
orandum may constitute Chief Counsel Advice, as defined in § 6110(i), subject to disclo-
sure under § 6110.
(1) Taxpayer may request a pre-submission conference in writing or by telephone.

A taxpayer may request a pre-submission conference in writing or by telephone. If sub-
mitted in writing, the request should identify the associate or assistant chief counsel office
expected to have jurisdiction over the request for a letter ruling and include a brief expla-
nation of the primary issue so that an assignment to the appropriate branch can be made.
A written request for a pre-submission conference should be sent to the appropriate
address listed in section 8.03(1) of this revenue procedure.
To request a pre-submission conference by telephone, call:
(a) (202) 622-7710 (not a toll-free call) for matters under the jurisdiction of the Office
of Associate Chief Counsel (Corporate);
(b) (202) 622-3900 (not a toll-free call) for matters under the jurisdiction of the Office
of Associate Chief Counsel (Financial Institutions & Products);
(c) (202) 622-4800 (not a toll-free call) for matters under the jurisdiction of the Office
of Associate Chief Counsel (Income Tax & Accounting);
(d) (202) 622-3800 (not a toll-free call) for matters under the jurisdiction of the Office
of Associate Chief Counsel (International);
(e) (202) 622-3000 (not a toll-free call) for matters under the jurisdiction of the Office
of Associate Chief Counsel (Passthroughs & Special Industries);
(f) (202) 622-3400 (not a toll-free call) for matters under the jurisdiction of the Office
of Associate Chief Counsel (Procedure and Administration); or
(g) (202) 622-6000 (not a toll-free call) for matters under the jurisdiction of the Office
of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities).
(2) Pre-submission conferences generally held in person. Pre-submission confer-

ences generally will be held in person at the national office. However, if the taxpayer is
unable to attend the conference, the conference may be conducted by telephone.
(3) Certain information required to be submitted to the national office prior to the
pre-submission conference. Generally, the taxpayer will be asked to provide at least 3
business days before the scheduled pre-submission conference a statement of whether the
issue is an issue on which a letter ruling is ordinarily issued and a draft of the letter ruling
request or other detailed written statement of the proposed transaction, issue, and legal
analysis. If the taxpayer’s authorized representative will attend the pre-submission con-
ference, a power of attorney is required. It is preferred that Form 2848, Power of Attorney
and Declaration of Representative, be used to provide the representative’s authorization.
If multiple taxpayers and/or their authorized representatives will attend the pre-submission
conference, cross powers of attorney (or tax information authorizations) are required.
(4) Discussion of substantive issues is not binding on the Service. Any discussion of
substantive issues at a pre-submission conference is advisory only, is not binding on the
Sec. 12.01
2001–1 I.R.B. 45 January 2, 2001
Service in general or on the Office of Chief Counsel in particular, and cannot be relied
upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).
Under limited circumstances, .08 Infrequently, taxpayers request that their conference of right be held by telephone.
may schedule a conference to This request may occur, for example, when a taxpayer wants a conference of right but
be held by telephone believes that the issue involved does not warrant incurring the expense of traveling to
Washington, D.C.. If a taxpayer makes such a request, the branch chief, senior technician
reviewer (or senior technical reviewer), or assistant to the branch chief (or assistant branch
chief) of the branch to which the case is assigned will decide if it is appropriate in the par-
ticular case to hold the conference of right by telephone. If the request is approved, the
taxpayer will be advised when to call the Service representatives (not a toll-free call).
SECTION 12. WHAT EFFECT

WILL A LETTER RULING HAVE?
May be relied on subject .01 A taxpayer ordinarily may rely on a letter ruling received from the Service subject
to limitations to the conditions and limitations described in this section.
Will not apply to another taxpayer .02 A taxpayer may not rely on a letter ruling issued to another taxpayer. See
§ 6110(k)(3).
Will be used by a director in .03 When determining a taxpayer’s liability, the director must ascertain whether—
examining the taxpayer’s return
(1) the conclusions stated in the letter ruling are properly reflected in the return;
(2) the representations upon which the letter ruling was based reflected an accurate
statement of the material facts;
(3) the transaction was carried out substantially as proposed; and
(4) there has been any change in the law that applies to the period during which the
transaction or continuing series of transactions were consummated.
If, when determining the liability, the director finds that a letter ruling should be revoked
or modified, the findings and recommendations of the director will be forwarded to the
national office for consideration before further action is taken by the director. Such a
referral to the national office will be treated as a request for technical advice and the pro-
visions of Rev. Proc. 2001–2 will be followed. Otherwise, the letter ruling is to be applied
by the director in the determination of the taxpayer’s liability. Appropriate coordination
with the national office will be undertaken if any field official having jurisdiction over a
return or other matter proposes to reach a conclusion contrary to a letter ruling previously
issued to the taxpayer.
May be revoked or modified .04 Unless it was part of a closing agreement as described in section 2.02 of this rev-
if found to be in error enue procedure, a letter ruling found to be in error or not in accord with the current views
of the Service may be revoked or modified. If a letter ruling is revoked or modified, the
revocation or modification applies to all years open under the period of limitations unless
the Service uses its discretionary authority under § 7805(b) to limit the retroactive effect
of the revocation or modification.
A letter ruling may be revoked or modified due to—
(1) a notice to the taxpayer to whom the letter ruling was issued;
(2) the enactment of legislation or ratification of a tax treaty;
(3) a decision of the United States Supreme Court;
Sec. 12.02
January 2, 2001 46 2001–1 I.R.B.
(4) the issuance of temporary or final regulations; or
(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement pub-
lished in the Internal Revenue Bulletin.
Consistent with these provisions, if a letter ruling relates to a continuing action or a

series of actions, it ordinarily will be applied until any one of the events described above
occurs or until it is specifically withdrawn.
Publication of a notice of proposed rulemaking will not affect the application of any let-
ter ruling issued under this revenue procedure.
Not generally revoked or .05 Except in rare or unusual circumstances, the revocation or modification of a letter
modified retroactively ruling will not be applied retroactively to the taxpayer for whom the letter ruling was
issued or to a taxpayer whose tax liability was directly involved in the letter ruling pro-
vided that—
(1) there has been no misstatement or omission of material facts;
(2) the facts at the time of the transaction are not materially different from the facts on
which the letter ruling was based;
(3) there has been no change in the applicable law;
(4) the letter ruling was originally issued for a proposed transaction; and
(5) the taxpayer directly involved in the letter ruling acted in good faith in relying on
the letter ruling, and revoking or modifying the letter ruling retroactively would be to the
taxpayer’s detriment. For example, the tax liability of each shareholder is directly
involved in a letter ruling on the reorganization of a corporation. However, the tax liabil-
ity of a member of an industry is not directly involved in a letter ruling issued to another
member and, therefore, the holding in a revocation or modification of a letter ruling to one
member of an industry may be retroactively applied to other members of the industry. By
the same reasoning, a tax practitioner may not extend to one client the non-retroactive
application of a revocation or modification of a letter ruling previously issued to another
client.
If a letter ruling is revoked or modified by letter with retroactive effect, the letter will,
except in fraud cases, state the grounds on which the letter ruling is being revoked or mod-
ified and explain the reasons why it is being revoked or modified retroactively.
Retroactive effect of revocation .06 A letter ruling issued on a particular transaction represents a holding of the Service
or modification applied to a on that transaction only. It will not apply to a similar transaction in the same year or any
particular transaction other year. And, except in unusual circumstances, the application of that letter ruling to
the transaction will not be affected by the later issuance of regulations (either temporary
or final) if conditions (1) through (5) in section 12.05 of this revenue procedure are met.
However, if a letter ruling on a transaction is later found to be in error or no longer in

accord with the position of the Service, it will not protect a similar transaction of the tax-
payer in the same year or later year.
Retroactive effect of revocation .07 If a letter ruling is issued covering a continuing action or series of actions and the
or modification applied to a letter ruling is later found to be in error or no longer in accord with the position of the
continuing action or series Service, the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial
of actions Institutions & Products), the Associate Chief Counsel (Income Tax & Accounting), the
Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs &
Special Industries), the Associate Chief Counsel (Procedure and Administration), or the
Sec. 12.07
2001–1 I.R.B. 47 January 2, 2001
Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as
appropriate, ordinarily will limit the retroactive effect of the revocation or modification to
a date that is not earlier than that on which the letter ruling is revoked or modified. For
example, the retroactive effect of the revocation or modification of a letter ruling covering
a continuing action or series of actions ordinarily would be limited in the following situa-
tions when the letter ruling is in error or no longer in accord with the position of the
Service:
(1) A taxpayer received a letter ruling that certain payments are excludable from gross
income for federal income tax purposes. However, the taxpayer ordinarily would be pro-
tected only for the payment received after the letter ruling was issued and before the revo-
cation or modification of the letter ruling.
(2) A taxpayer rendered a service or provided a facility that is subject to the excise tax
on services or facilities and, in relying on a letter ruling received, did not pass the tax on
to the user of the service or the facility.
(3) An employer incurred liability under the Federal Insurance Contributions Act but,
in relying on a letter ruling received, neither collected the employee tax nor paid the
employee and employer taxes under the Federal Insurance Contributions Act. The retroac-
tive effect would be limited for both the employer and employee tax. However, the limi-
tation would be conditioned on the employer furnishing wage data, as may be required by
§ 31.6011(a)–1 of the Employment Tax Regulations.
Generally not retroactively .08 A letter ruling holding that the sale or lease of a particular article is subject to the
revoked or modified if related manufacturer’s excise tax or the retailer’s excise tax may not retroactively revoke or mod-
to sale or lease subject ify an earlier letter ruling holding that the sale or lease of such an article was not taxable
to excise tax if the taxpayer to whom the letter ruling was issued, in relying on the earlier letter ruling,
gave up possession or ownership of the article without passing the tax on to the customer.
(Section 1108(b), Revenue Act of 1926.)
May be retroactively revoked .09 A taxpayer is not protected against retroactive revocation or modification of a letter
or modified when transaction ruling involving a transaction completed before the issuance of the letter ruling or involv-
is entered into before the ing a continuing action or series of actions occurring before the issuance of the letter rul-
issuance of the letter ruling ing because the taxpayer did not enter into the transaction relying on a letter ruling.
May be retroactively revoked .10 If a letter ruling is issued covering a particular transaction and the material facts on
or modified when transaction is which the letter ruling is based are later changed, a taxpayer is not protected against
entered into after a change retroactive revocation or modification of the letter ruling when the transaction is complet-
in material facts ed after the change in the material facts. Similarly, a taxpayer is not protected against retroac-
tive revocation or modification of a letter ruling involving a continuing action or a series of
actions occurring after the material facts on which the letter ruling is based have changed.
Taxpayer may request that .11 Under § 7805(b), the Service may prescribe any extent to which a revocation or
retroactivity be limited modification of a letter ruling will be applied without retroactive effect.
A taxpayer to whom a letter ruling has been issued may request that the Associate Chief
Counsel (Corporate), the Associate Chief Counsel (Financial Institutions & Products),
the Associate Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel
Associate Chief Counsel (Procedure and Administration), or the Division Coun-
sel/Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate, limit
the retroactive effect of any revocation or modification of the letter ruling.
Format of request (1) Request for relief under § 7805(b) must be made in required format.
A request to limit the retroactive effect of the revocation or modification of a letter rul-
ing must be in the general form of, and meet the general requirements for, a letter ruling
Sec. 12.07
January 2, 2001 48 2001–1 I.R.B.
request. These requirements are given in section 8 of this revenue procedure. Specifically,
the request must also–
(a) state that it is being made under § 7805(b);
(b) state the relief sought;
(c) explain the reasons and arguments in support of the relief requested (including a dis-
cussion of the five items listed in section 12.05 of this revenue procedure and any other
factors as they relate to the taxpayer’s particular situation); and
(d) include any documents bearing on the request.
A request that the Service limit the retroactive effect of a revocation or modification of
a letter ruling may be made in the form of a separate request for a letter ruling when, for
example, a revenue ruling has the effect of modifying or revoking a letter ruling previously
issued to the taxpayer or when the Service notifies the taxpayer of a change in position that
will have the effect of revoking or modifying the letter ruling.
However, when notice is given by the director during an examination of the taxpayer’s
return or by the Area Director, Appeals LMSB, or Area Director, Appeals SB/SE-TE/GE,
as appropriate, during consideration of the taxpayer’s return before an area office, a
request to limit retroactive effect must be made in the form of a request for technical
advice as explained in section 18.03 of Rev. Proc. 2001–2.
When germane to a pending letter ruling request, a request to limit the retroactive effect of
a revocation or modification of a letter ruling may be made as part of the request for the let-
ter ruling, either initially or at any time before the letter ruling is issued. When a letter ruling
that concerns a continuing transaction is revoked or modified by, for example, a subsequent
revenue ruling, a request to limit retroactive effect must be made before the examination of
the return that contains the transaction that is the subject of the letter ruling request.
Request for conference (2) Taxpayer may request a conference on application of § 7805(b).
A taxpayer who requests the application of § 7805(b) in a separate letter ruling request
has the right to a conference in the national office as explained in sections 11.02, 11.04,
and 11.05 of this revenue procedure. If the request is made initially as part of a pending
letter ruling request or is made before the conference of right is held on the substantive
issues, the § 7805(b) issue will be discussed at the taxpayer’s one conference of right as
explained in section 11.02 of this revenue procedure. If the request for the application of
§ 7805(b) relief is made as part of a pending letter ruling request after a conference has
been held on the substantive issue and the Service determines that there is justification for
having delayed the request, the taxpayer is entitled to one conference of right concerning
the application of § 7805(b), with the conference limited to discussion of this issue only.

LETTER HAVE?
Has same effect as a letter ruling .01 A determination letter issued by a director has the same effect as a letter ruling
issued to a taxpayer under section 12 of this revenue procedure.
If a director proposes to reach a conclusion contrary to that expressed in a determination

letter, he or she need not refer the matter to the national office as is required for a letter
ruling found to be in error. However, the director must refer the matter to the national
office if the director desires to have the revocation or modification of the determination
letter limited under § 7805(b).
Sec. 13.02
2001–1 I.R.B. 49 January 2, 2001
retroactive effect of revocation modification of a determination letter will be applied without retroactive effect. However,
or modification be limited a director does not have authority under § 7805(b) to limit the revocation or modification
of the determination letter. Therefore, if a director proposes to revoke or modify a deter-
mination letter, the taxpayer may request limitation of the retroactive effect of the revoca-
tion or modification by asking the director who issued the determination letter to seek
technical advice from the national office. See section 18.03 of Rev. Proc. 2001–2.
A taxpayer’s request to limit the retroactive effect of the revocation or modification of

the determination letter must be in the form of, and meet the general requirements for, a
technical advice request. See section 18.03 of Rev. Proc. 2001–2. The request must also—
(c) explain the reasons and arguments in support of the relief sought (including a dis-
When technical advice is requested regarding the application of § 7805(b), the taxpayer has
the right to a conference in the national office to the same extent as does any taxpayer who is
the subject of a technical advice request. See sections 13 and 18.04 of Rev. Proc. 2001–2.

CIRCUMSTANCES ARE
MATTERS REFERRED
BETWEEN A FIELD OFFICE
AND THE NATIONAL OFFICE?
Requests for determination letters .01 Requests for determination letters received by directors that, under the provisions
of this revenue procedure, may not be issued by a field office, will be forwarded to the
national office for reply. The field office will notify the taxpayer that the matter has been
referred.
Directors will also refer to the national office any request for a determination letter that
in their judgment should have the attention of the national office.
No-rule areas .02 If the request involves an issue on which the Service will not issue a letter ruling or
determination letter, the request will not be forwarded to the national office. The field
office will notify the taxpayer that the Service will not issue a letter ruling or a determi-
nation letter on the issue. See section 7 of this revenue procedure for a description of no-
rule areas.
Requests for letter rulings .03 Requests for letter rulings received by the national office that, under section 5 of
this revenue procedure, may not be acted upon by the national office will be forwarded to
the field office that has examination jurisdiction over the taxpayer’s return. The taxpayer
will be notified of this action. If the request is on an issue or in an area of the type dis-
cussed in section 7 of this revenue procedure and the Service decides not to issue a letter
ruling or an information letter, the national office will notify the taxpayer and will then for-
ward the request to the appropriate field office for association with the related return.
Sec. 13.02
January 2, 2001 50 2001–1 I.R.B.
USER FEE REQUIREMENTS
FOR REQUESTS FOR LETTER
RULINGS AND
Legislation authorizing .01 Section 10511 of the Revenue Act of 1987, 1987–3 C.B. 1, 166, enacted December
user fees 22, 1987, as amended by § 11319 of the Omnibus Budget Reconciliation Act of 1990,
1991–2 C.B. 481, 511, enacted November 5, 1990, by § 743 of the Uruguay Round
Agreements Act, 1995–1 C.B. 230, 239, enacted December 8, 1994, and by § 2 of the Tax
Benefits for Individuals Performing Services in Certain Hazardous Duty Areas, 1996–3
C.B. 1, enacted March 20, 1996 (hereafter the four laws are referred to together as the
“Act”), provides that the Secretary of the Treasury or delegate (the “Secretary”) shall
establish a program requiring the payment of user fees for requests to the Service for let-
ter rulings, opinion letters, determination letters, and similar requests. The fees apply to
requests made on or after February 1, 1988, and before October 1, 2003. The fees charged
under the program are to: (1) vary according to categories or subcategories established by
the Secretary; (2) be determined after taking into account the average time for, and diffi-
culty of, complying with requests in each category and subcategory; and (3) be payable in
advance. The Secretary is to provide for exemptions and reduced fees under the program
as the Secretary determines to be appropriate, but the average fee applicable to each cate-
gory must not be less than the amount specified in the Act.
Requests to which a user .02 In general, user fees apply to all requests for—
fee applies
(1) letter rulings, determination letters, and advance pricing agreements;
(2) closing agreements described in paragraph (A)(3)(d) of Appendix A of this revenue

procedure;
(3) renewal of advance pricing agreements; and
(4) reconsideration of letter rulings or determination letters.
Requests to which a user fee applies must be accompanied by the appropriate fee as
determined from the fee schedule provided in Appendix A of this revenue procedure. The
fee may be refunded as provided in section 15.10 of this revenue procedure.
Requests to which a user fee .03 User fees do not apply to—
does not apply
(1) elections made pursuant to § 301.9100–2, pertaining to automatic extensions of time
(see section 5.02 of this revenue procedure);
(2) late S corporation and related elections made pursuant to Rev. Proc. 98–55 or Rev.
Proc. 97–48 (see section 5.01(3) of this revenue procedure);
(3) requests for information letters; or
(4) requests for a change in accounting period or accounting method permitted to be made
by a published automatic change revenue procedure (see section 9.03 of this revenue procedure).
Exemptions from the .04 The user fee requirements do not apply to—
user fee requirements
(1) departments, agencies, or instrumentalities of the United States that certify that they
are seeking a letter ruling or determination letter on behalf of a program or activity fund-
ed by federal appropriations. The fact that a user fee is not charged does not have any
bearing on whether an applicant is treated as an agency or instrumentality of the United
States for purposes of any provision of the Code; or
Sec. 15.06
2001–1 I.R.B. 51 January 2, 2001
(2) requests as to whether a worker is an employee for federal employment taxes and
income tax withholding purposes (chapters 21, 22, 23, and 24 of subtitle C of the Code)
submitted on Form SS-8, Information for Use in Determining Whether a Worker Is an
Employee for Federal Employment Taxes and Income Tax Withholding, or its equivalent.
Fee schedule .05 The schedule of user fees is provided in Appendix A of this revenue procedure. For
the user fee requirements applicable to—
(1) requests for advance pricing agreements or renewals of advance pricing agreements,
see section 5.14 of Rev. Proc. 96–53, 1996–2 C.B. at 379; or
(2) requests for letter rulings, determination letters, etc., under the jurisdiction of the
Commissioner, Tax Exempt and Government Entities Division, see Rev. Proc. 2001–8.
Applicable user fee for a request .06

involving multiple offices,
fee categories, issues, transactions, (1) Requests involving several offices. If a request dealing with only one transaction
or entities involves more than one of the offices within the Service (for example, one issue is under
the jurisdiction of the Associate Chief Counsel (Passthroughs & Special Industries) and
another issue is under the jurisdiction of the Commissioner, Tax Exempt and Government
Entities Division), only one fee applies, namely the highest fee that otherwise would apply
to each of the offices involved. See Rev. Proc. 2001–8 for the user fees applicable to issues
under the jurisdiction of the Commissioner, Tax Exempt and Government Entities
Division.
(2) Requests involving several fee categories. If a request dealing with only one trans-
action involves more than one fee category, only one fee applies, namely the highest fee
that otherwise would apply to each of the categories involved.
(3) Requests involving several issues. If a request dealing with only one transaction
involves several issues, a request for a change in accounting method dealing with only one
item or sub-method of accounting involves several issues, or a request for a change in
accounting period dealing with only one item involves several issues, the request is treat-
ed as one request. Therefore, only one fee applies, namely the fee that applies to the par-
ticular category or subcategory involved. The addition of a new issue relating to the same
transaction or item will not result in an additional fee, unless the issue places the transac-
tion or item in a higher fee category.
(4) Requests involving several unrelated transactions. If a request involves sever-

al unrelated transactions, a request for a change in accounting method involves several
unrelated items or sub-methods of accounting, or a request for a change in accounting
period involves several unrelated items, each transaction or item is treated as a separate
request. As a result, a separate fee will apply for each unrelated transaction or item. An
additional fee will apply if the request is changed by the addition of an unrelated trans-
action or item not contained in the initial request. An example of a request involving
unrelated transactions is a request involving relief under § 301.9100–3 and the underly-
ing issue.
(5) Requests involving several entities. Each entity involved in a transaction (for
example, a reorganization) that desires a separate letter ruling in its own name must pay a
separate fee regardless of whether the transaction or transactions may be viewed as relat-
ed. But see section 15.07 of this revenue procedure.
Applicable user fee for .07

substantially identical
letter rulings or identical (1) In general. The user fees provided in paragraph (A)(5) of Appendix A of this rev-
accounting method changes enue procedure apply to the situations described in sections 15.07(2) and 15.07(3) of this
Sec. 15.06
January 2, 2001 52 2001–1 I.R.B.
revenue procedure. To assist in the processing of these user fee requests, all letter ruling
requests submitted under this section 15.07 should—
(a) Type or print at the top of the letter ruling request: “REQUEST FOR USER FEE
UNDER SECTION 15.07 OF REV. PROC. 2001–1”;
(b) List on the first page of the submission all taxpayers and entities requesting a letter
ruling (including the taxpayer identification number, and the amount of user fee submit-
ted, for each taxpayer or entity); and
(c) Submit one check to cover all user fees.
If the Service determines that the letter ruling requests do not qualify for the user fee
provided in paragraph (A)(5) of Appendix A of this revenue procedure, the Service will
request the proper fee. See section 15.09 of this revenue procedure.
(2) Substantially identical letter rulings. The user fee provided in paragraph
(A)(5)(a) of Appendix A of this revenue procedure applies to a taxpayer that requests sub-
stantially identical letter rulings (including accounting period, accounting method, and
earnings and profits requests other than those submitted on Forms 1128, 2553, 3115, and
5452) for either multiple entities with a common member or sponsor, or multiple members
of a common entity. To qualify for this user fee, all information and underlying documents
must be substantially identical and all letter ruling requests must be submitted at the same
time. In addition, the letter ruling requests must—
(a) State that the letter ruling requests, and all information and underlying documents,
are substantially identical; and
(b) Specifically identify the extent to which the letter ruling requests, information, and
underlying documents are not identical.
(3) Identical accounting method changes and related § 301.9100 letter rulings. The user
fees provided in paragraphs (A)(5)(b) and (c) of Appendix A of this revenue procedure apply to
a parent corporation that requests either the identical accounting method change on a single
Form 3115 on behalf of more than one member of a consolidated group or an extension of time
to file Form 3115 under § 301.9100–3 for the identical accounting method change on behalf of
more than one member of a consolidated group. To qualify for this user fee, the taxpayers in the
consolidated group must be members of the same affiliated group under § 1504(a) that join in
the filing of a consolidated tax return and must be requesting to change from the identical pre-
sent method of accounting to the identical proposed method of accounting. All aspects of the
requested accounting method change, including the present and proposed methods, the underly-
ing facts and the authority for the request, must be identical, except for the § 481(a) adjustment
for the year of change.
In addition, a parent corporation must file a single Form 3115. Besides including all the
information required on the Form 3115, the parent corporation must, for each member of
a consolidated group for which the accounting method change is being requested, attach
to the Form 3115 a schedule providing its name, employer identification number, and §
481(a) adjustment for the year of change. The Form 3115 must be signed by a duly autho-
rized officer of the parent corporation.
In the case of a § 301.9100 request for an extension of time to file Form 3115, a parent
corporation must submit the information required in the above paragraph in addition to the
information required by section 5.02 of this revenue procedure.
Method of payment .08 Each request to the Service for a letter ruling, determination letter, advance pricing
agreement, closing agreement described in paragraph (A)(3)(d) of Appendix A of this revenue
Sec. 15.09
2001–1 I.R.B. 53 January 2, 2001
procedure, or reconsideration of a letter ruling or determination letter must be accompanied
by a check or money order in U.S. dollars, payable to the Internal Revenue Service, in the
appropriate amount. (However, the user fee check or money order should not be attached to
the Form 2553, Election by a Small Business Corporation, when it is filed at the Service
Center. If on the Form 2553 the corporation requests a ruling that it be permitted to use a fis-
cal year under section 6.03 of Rev. Proc. 87–32, the Service Center will forward the request
to the national office. When the national office receives the Form 2553 from the Service
Center, it will notify the taxpayer that the fee is due.) Taxpayers should not send cash.
Effect of nonpayment or .09 If a request is not accompanied by a properly completed check or money order or
payment of incorrect amount is accompanied by a check or money order for less than the correct amount, the respective
office within the Service that is responsible for issuing the letter ruling, determination let-
ter, advance pricing agreement, closing agreement, or reconsideration of a letter ruling or
determination letter generally will exercise discretion in deciding whether to return imme-
diately the request. If a request is not immediately returned, the taxpayer will be contact-
ed and given a reasonable amount of time to submit the proper fee. If the proper fee is not
received within a reasonable amount of time, the entire request will then be returned.
However, the Service will usually defer substantive consideration of a request until prop-
er payment has been received. The return of a request to the taxpayer may adversely affect
substantive rights if the request is not perfected and resubmitted to the Service within 30
days of the date of the cover letter returning the request.
If a request is accompanied by a check or money order for more than the correct amount,
the request will be accepted and the amount of the excess payment will be returned to the
taxpayer.
Refunds of user fee .10 In general, the user fee will not be refunded unless the Service declines to rule on
all issues for which a ruling is requested.
(1) The following situations are examples of situations in which the user fee will not
be refunded:
(a) The request for a letter ruling, determination letter, etc., is withdrawn at any time
subsequent to its receipt by the Service, unless the only reason for withdrawal is that the
Service has advised the taxpayer that a higher user fee than was sent with the request is
applicable and the taxpayer is unwilling to pay the higher fee.
(b) The request is procedurally deficient, although accompanied by the proper fee or an
overpayment, and is not timely perfected by the requester. When there is a failure to per-
fect timely the request, the case will be considered closed and the failure to perfect will be
treated as a withdrawal for purposes of this revenue procedure. See section 10.06(3) of
this revenue procedure.
(c) The Service notifies the taxpayer that the Service will not issue the letter ruling and
has closed the case as a result of the taxpayer’s failure to submit timely the additional
information requested by the Service. The failure to submit the additional information will
be treated as a withdrawal for purposes of this revenue procedure. See section 10.07(5) of
(d) A letter ruling, determination letter, etc., is revoked in whole or in part at the initia-
tive of the Service. The fee paid at the time the original letter ruling, determination letter,
etc., was requested will not be refunded.
(e) The request contains several issues, and the Service rules on some, but not all, of the
issues. The highest fee applicable to the issues on which the Service rules will not be refunded.
(f) The taxpayer asserts that a letter ruling the taxpayer received covering a single issue
is erroneous or not responsive (other than an issue on which the Service has declined to
Sec. 15.09
January 2, 2001 54 2001–1 I.R.B.
rule) and requests reconsideration. The Service, upon reconsideration, does not agree that
the letter ruling is erroneous or is not responsive. The fee accompanying the request for
reconsideration will not be refunded.
(g) The situation is the same as described in paragraph (f) of this section 15.10(1) except
that the letter ruling covered several unrelated transactions. The Service, upon reconsid-
eration, does not agree with the taxpayer that the letter ruling is erroneous or is not respon-
sive for all of the transactions, but does agree that it is erroneous as to one transaction. The
fee accompanying the request for reconsideration will not be refunded except to the extent
applicable to the transaction for which the Service agrees the letter ruling was in error.
(h) The request is for a supplemental letter ruling, determination letter, etc., concerning
a change in facts (whether significant or not) relating to the transaction on which the
Service ruled.
(i) The request is for reconsideration of an adverse or partially adverse letter ruling or
a final adverse determination letter, and the taxpayer submits arguments and authorities
not submitted before the original letter ruling or determination letter was issued.
(2) The following situations are examples of situations in which the user fee will be
refunded:
(a) In a situation to which section 15.10(1)(i) of this revenue procedure does not apply,
the taxpayer asserts that a letter ruling the taxpayer received covering a single issue is erro-
neous or is not responsive (other than an issue on which the Service declined to rule) and
requests reconsideration. The Service agrees, upon reconsideration, that the letter ruling
is erroneous or is not responsive. The fee accompanying the taxpayer’s request for recon-
sideration will be refunded.
(b) In a situation to which section 15.10(1)(i) of this revenue procedure does not apply,
the taxpayer requests a supplemental letter ruling, determination letter, etc., to correct a
mistake that the Service agrees it made in the original letter ruling, determination letter,
etc., such as a mistake in the statement of facts or in the citation of a Code section. Once
the Service agrees that it made a mistake, the fee accompanying the request for the sup-
plemental letter ruling, determination letter, etc., will be refunded.
(c) The taxpayer requests and is granted relief under § 7805(b) in connection with the
revocation in whole or in part, of a previously issued letter ruling, determination letter, etc.
The fee accompanying the request for relief will be refunded.
(d) In a situation to which section 15.10(1)(e) of this revenue procedure applied, the tax-
payer requests reconsideration of the Service’s decision not to rule on an issue. Once the
Service agrees to rule on the issue, the fee accompanying the request for reconsideration
will be refunded.
(e) The letter ruling is not issued and taking into account all the facts and circumstances,
including the Service’s resources devoted to the request, the associate or assistant chief
counsel, as appropriate, in his or her sole discretion decides a refund is appropriate.
Request for reconsideration .11 A taxpayer that believes the user fee charged by the Service for its request for a let-
of user fee ter ruling, determination letter, advance pricing agreement, or closing agreement is either
inapplicable or incorrect and wishes to receive a refund of all or part of the amount paid
(see section 15.10 of this revenue procedure) may request reconsideration and, if desired,
the opportunity for an oral discussion by sending a letter to the Service at the appropriate
address given in section 8.03 in this revenue procedure. Both the incoming envelope and
the letter requesting such reconsideration should be prominently marked “USER FEE
Sec. 15.11
2001–1 I.R.B. 55 January 2, 2001
RECONSIDERATION REQUEST.” No user fee is required for these requests. The
request should be marked for the attention of:
If the matter involves primarily: Mark for the attention of:
Associate Chief Counsel Associate Chief Counsel (Corporate)

(Corporate) letter ruling requests
Associate Chief Counsel Associate Chief Counsel (Financial Institutions & Products)
(Financial Institutions &
Products) letter ruling requests
Associate Chief Counsel Associate Chief Counsel (Income Tax & Accounting)
(Income Tax & Accounting)
letter ruling requests
Associate Chief Counsel Assistant Chief Counsel (International)

(International) letter ruling and
advance pricing agreement requests
Associate Chief Counsel Associate Chief Counsel (Passthroughs & Special Industries)
(Passthroughs & Special Industries)
Associate Chief Counsel Associate Chief Counsel (Procedure and Administration)

(Procedure and Administration)
Division Counsel/Associate Chief Assistant Chief Counsel ( )

Counsel (Tax Exempt and Government (Complete by using whichever of the following designations applies.)
Entities) letter ruling requests
(Employee Benefits)
(Employment Tax/Exempt Organizations/Government Entities)
Determination letter requests Manager, Office of Pre-Filing Services

submitted pursuant to this
revenue procedure by taxpayers
under the jurisdiction of LMSB
Determination letter requests Complete by using whichever of the following designations applies.
submitted pursuant to this
revenue procedure by taxpayers Area Director, Field Compliance, SB/SE
under the jurisdiction of SB/SE, Director, Compliance, W&I
W&I, or TE/GE Director, Employee Plans Examinations
Director, Exempt Organizations Examinations
Director, Federal, State & Local Governments
Director, Tax Exempt Bonds
Director, Indian Tribal Governments
(Add name of field office handling the request.)

GENERAL PROCEDURES
APPLICABLE TO INFORMATION
LETTERS ISSUED BY THE
NATIONAL OFFICE?
Sec. 15.11
January 2, 2001 56 2001–1 I.R.B.
Will be made available to the public .01 Information letters that are issued by the national office to members of the public
will be made available to the public. These documents provide general statements of well-
defined law without applying them to a specific set of facts. See section 2.04 of this rev-
enue procedure. Information letters that are issued by the field or a director, however, will
not be made available to the public.
The following documents also will not be available for public inspection as part of this process:
(1) letters that merely transmit Service publications or other publicly available material,
without significant legal discussion;
(2) responses to taxpayer or third party contacts that are inquiries with respect to a pend-
ing request for a letter ruling, technical advice memorandum, or Chief Counsel Advice
(whose public inspection is subject to § 6110); and
(3) responses to taxpayer or third party communications with respect to any investiga-
tion, audit, litigation, or other enforcement action.
Deletions made under the .02 Before any information letter is made available to the public, the national office will
Freedom of Information Act delete any name, address, and other identifying information as appropriate under the
Freedom of Information Act (“FOIA”) (for example, FOIA personal privacy exemption of
5 U.S.C. § 552(b)(6) and tax details exempt pursuant to § 6103, as incorporated into FOIA
by 5 U.S.C. § 552(b)(3)). Because information letters do not constitute written determi-
nations (including Chief Counsel Advice) as defined in § 6110, these documents are not
subject to public inspection under § 6110.
Effect of information letters .03 Information letters are advisory only and have no binding effect on the Service. See
section 2.04 of this revenue procedure. If the national office issues an information letter
in response to a request for a letter ruling that does not meet the requirements of this rev-
enue procedure, the information letter is not a substitute for a letter ruling.
SECTION 17. WHAT .01 The offices and titles in this revenue procedure are based on the current organiza-
SIGNIFICANT CHANGES tion of the Service. The operating divisions of the Service are described in section 1.
HAVE BEEN MADE TO
REV. PROC. 2000–1? .02 Section 3 is updated to reflect the jurisdiction of the associate chief counsel offices
under the current organization of the Office of Chief Counsel.
.03 Section 5.01(4) of Rev. Proc. 2000–1 has been deleted because the two-year effec-
tive period of Rev. Proc. 98–17 has expired.
.04 Sections 5.11 through 5.14 of Rev. Proc. 2000–1 have been redesignated as sections
5.12 through 5.15 in this revenue procedure. New section 5.11 is added to provide the cir-
cumstances under which the Office of Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities) issues determinations recognizing a tribal entity as an
Indian tribal government or as a political subdivision of an Indian tribal government.
.05 Section 5.14 is amended to provide that the national office ordinarily does not issue
letter rulings on matters involving the federal tax consequences of any proposed federal,
state, local, municipal, or foreign legislation.
.06 Section 7.06 is added to provide that a letter ruling or determination letter ordinar-
ily will not be issued on which of two entities, under common law rules applicable in
determining the employer-employee relationship, is the employer, when one entity is treat-
ing the worker as an employee.
.07 Sections 8.01(6) through 8.01(16) of Rev. Proc. 2000–1 have been redesignated as
sections 8.01(8) through 8.01(18) in this revenue procedure. New section 8.01(6) is added
Sec. 17
2001–1 I.R.B. 57 January 2, 2001
to require the submission of a written statement regarding the interpretation of a substan-
tive provision of an income or estate tax treaty.
.08 New section 8.01(7) is added to advise taxpayers that a letter from the Bureau of Indian
Affairs (“BIA”) regarding a tribe’s status will expedite action on a letter ruling request for
recognition of Indian tribal government status or status as a political subdivision of an Indian
tribal government. The BIA address to send a request to verify tribal status is also provided.
.09 Section 8.01(18) is amended to provide the IRS web site for obtaining a copy of the
checklist in Appendix C of this revenue procedure.
.10 Section 8.02(4) is amended to clarify the circumstances under which expedited han-
dling of letter ruling and determination letter requests will be granted. To accommodate
genuine business exigencies, the Service may grant a request for expedited handling pro-
vided the taxpayer demonstrates that the deadline or business emergency, and the need for
expedited handling, resulted from circumstances that could not reasonably have been
anticipated or controlled by the taxpayer. Examples have been provided.
.11 Section 8.03(1)(b)(i) of Rev. Proc. 2000–1 has been deleted because of security con-
cerns regarding, and the lack of use of, the drop box at the IRS main building.
Accordingly, requests for letter rulings may no longer be delivered to the drop box.
.12 Section 8.03(2) is amended to provide the offices to which requests for determination
letters should be sent. New Appendix D also is added to provide a listing of the SB/SE offices.
.13 Section 9 is updated to reflect the revenue procedures and notices effective as of
December 31, 2000.
.14 Section 11.07 is amended to clarify that pre-submission conferences are held only
if the identity of the taxpayer is provided to the national office.
.15 Section 11.07 also is amended to provide that when a letter ruling request is not submit-
ted following a pre-submission conference, the national office may notify, by memorandum, the
appropriate Service official in the operating division that has examination jurisdiction over the
taxpayer’s tax return and may give its views on the issues raised during the pre-submission con-
ference. This memorandum may constitute Chief Counsel Advice, subject to disclosure.
.16 Section 15.08 is amended to clarify that the check or money order in payment of the
user fees must be in U.S. dollars.
.17 The user fees in Appendix A for letter ruling requests, letter ruling requests for
extensions of time to file change in accounting period or change in accounting method
forms, and closing agreement requests are increased.
.18 The availability of the $500 reduced user fee in Appendix A for a request involving
a personal tax issue is expanded. This reduced fee will apply to such a request from a per-
son with gross income of less than $250,000.
SECTION 18. WHAT IS .01 Rev. Proc. 2000–1, 2000–1 I.R.B. 4, is superseded.
THE EFFECT OF THIS
REVENUE PROCEDURE .02 Notice 97–19, 1997–1 C.B. 394, is modified by deleting all references to Rev. Proc.
ON OTHER DOCUMENTS? 97–1 and replacing them with references to this revenue procedure.
.03 Rev. Proc. 96–13, 1996–1 C.B. 616, is modified by deleting all references to Rev.
Proc. 96–1 and replacing them with references to this revenue procedure.
.04 Rev. Proc. 84–37, 1984–1 C.B. 513, is modified by deleting all references to Rev.
Proc. 84–1 and replacing them with references to this revenue procedure. Section 3.04 is
Sec. 17
January 2, 2001 58 2001–1 I.R.B.
modified by deleting the address contained therein and replacing it with the addresses in
section 8.03(1) of this revenue procedure.
SECTION 19. WHAT IS This revenue procedure is effective January 15, 2001, with the following exceptions:
THE EFFECTIVE DATE
OF THIS REVENUE (1) The submission of the written statement required in section 8.01(6) of this revenue
PROCEDURE? procedure is effective only for requests postmarked or, if not mailed, received on or after
January 15, 2001.
(2) Any change to the $500 reduced user fee in Appendix A for requests involving a per-
sonal tax issue, including any related change made to the procedural matters in paragraph
(B) of Appendix A, is effective only for requests postmarked or, if not mailed, received on
or after January 15, 2001.
(3) Any increase in the user fee in Appendix A is effective only for requests postmarked
or, if not mailed, received on or after March 1, 2001.
SECTION 20. PAPERWORK The collections of information contained in this revenue procedure have been reviewed
REDUCTION ACT and approved by the Office of Management and Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. § 3507) under control number 1545–1522.
An agency may not conduct or sponsor, and a person is not required to respond to, a col-
lection of information unless the collection of information displays a valid control number.
The collections of information in this revenue procedure are in sections 5.05, 6.07, 8.01,
8.02, 8.03, 8.04, 8.05, 8.07, 9.01 (subject matter—rate orders; regulatory agency; normal-
ization), 10.06, 10.07, 10.09, 11.01, 11.06, 11.07, 12.11, 13.02, 15.02, 15.07, 15.08, 15.09,
and 15.11, paragraph (B)(1) of Appendix A, and Appendix C. This information is required
to evaluate and process the request for a letter ruling or determination letter. In addition,
this information will be used to help the Service delete certain information from the text
of the letter ruling or determination letter before it is made available for public inspection,
as required by § 6110. The collections of information are required to obtain a letter ruling
or determination letter. The likely respondents are business or other for-profit institutions.
The estimated total annual reporting and/or recordkeeping burden is 305,140 hours.
The estimated annual burden per respondent/recordkeeper varies from 1 to 200 hours,
depending on individual circumstances, with an estimated average burden of 80.3 hours.
The estimated number of respondents and/or recordkeepers is 3,800.
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection of information must be retained as long as their

contents may become material in the administration of any internal revenue law.
Generally, tax returns and tax return information are confidential, as required by § 6103.
DRAFTING INFORMATION The principal author of this revenue procedure is Sara Logan of the Office of Associate
Chief Counsel (Passthroughs & Special Industries). For further information regarding this
revenue procedure for matters under the jurisdiction of—
(1) the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial
Institutions & Products), the Associate Chief Counsel (Income Tax & Accounting), the
Associate Chief Counsel (Passthroughs & Special Industries), or the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), contact
Kathleen Reed or Ms. Logan at (202) 622-3110 (not a toll-free call);
(2) the Associate Chief Counsel (International), contact Gerard Traficanti at (202) 622-
3619 (not a toll-free call); or
2001–1 I.R.B. 59 January 2, 2001

(3) the Associate Chief Counsel (Procedure and Administration), contact George
Bowden or Henry Schneiderman at (202) 622-3400 (not a toll-free call).
For further information regarding user fees, contact Wayne Thomas at (202) 622-7560
(not a toll-free call).
January 2, 2001 60 2001–1 I.R.B.

INDEX
References are to sections in Rev. Proc. 2001–1
Additional Information
– perjury statement required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(1)
– proposed deletions under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.01(11)
– requested during initial contact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.06
failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.06(3)
– subsequent requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07
after conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.06
failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(5)
– where to send . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(2)
Changes in Accounting Method or Period

– applicable sections of Rev. Proc. 2001–1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.01
– automatic change revenue procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.03
– identical accounting method changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.02(8), 10.10, 15.07, Appendix A
– user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15, Appendix A
Checklist Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.01(18), Appendix C
Conferences
– offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.04, 11.02
after conference of right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.05
application of § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(11)
– requesting a conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.02(7)
– scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.01, 11.02
application of § 7805(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.11(2), 13.02(2)
pre-submission conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.07
telephone conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.08
Definitions
– area office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
– closing agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.02
– determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.03
– director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
– field office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
– information letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.04
– letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.01
– national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
– revenue ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.05
– taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Determinations Under § 999(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.03
Discussions Not Binding on Service

– at pre-submission conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.07
– informal opinion expressed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.05
– oral advice to taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.06(2)
Employee Plans and Exempt Organizations

– jurisdiction of Commissioner, Tax Exempt and Government Entities Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.02
– user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.02
Estate Tax Matters

– issuance of determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.02, 6.06
– issuance of letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.05
under § 2032A(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.06
2001–1 I.R.B. 61 January 2, 2001

Expedited Handling of Letter Ruling and Determination
Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.02(4)
Extension of Time
– to schedule conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.01
– to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.06(2), 10.07(4), 11.06
Fax Transmission
– to receive letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(5)
– to receive request for additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.02(5)
– to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(1)
– to submit letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(6)
Hand Delivery of Letter Ruling Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.03(1)
No-Rule Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Oral Advice to Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.06
Penalties of Perjury Statement

– form for letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(15)(a)
– form for submission of additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07(1)
– required with draft letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.09
– signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(15)(b)
Pending Letter Ruling Requests

– when to attach a copy to return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.04
estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.05
– when to notify national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.04
estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.05
Power of Attorney
– Form 2848 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(14) and 8.02(2)
copies sent to multiple representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(2)(a)
original sent to representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(2)(b)
no copy sent to representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(2)(c)
– signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(14)
Public Disclosure of Information Letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Public Inspection Under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.01(11)

– signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(11)(c)
Representatives
– compliance with Treasury Department Circular No. 230 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.08
– power of attorney required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(14)
– requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(13)
employee, general partner, administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(13)
foreign representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(13)
Retroactive Revocation or Modification

– of determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
request to limit retroactive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13.02
– of letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.03–12.10
request to limit retroactive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.11
Revenue Rulings
– effect on a letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.04
– request to limit retroactive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.11
January 2, 2001 62 2001–1 I.R.B.
Sample of a Letter Ruling Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.01(17), Appendix B
Section 301.9100 Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.02
Section 367 Rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.04
Status of Letter Ruling and Determination Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.06
Substantially Identical Letter Rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.02(8), 10.10, 15.07, Appendix A
User Fees
– schedule of user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix A
– user fees requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
to reopen case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.06(3), 10.07(5)
Where to Send
– determination letter request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.03(2)
– letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.03(1)
additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.07(2)
hand delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.03(1)
Withdrawal of Letter Ruling and Determination Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.07
2001–1 I.R.B. 63 January 2, 2001

APPENDIX A
SCHEDULE OF USER FEES
NOTE: Checks or money orders must be in U.S. dollars
(A) FEE SCHEDULE
CATEGORY FEE FOR REQUESTS FEE FOR REQUESTS

POSTMARKED AFTER POSTMARKED ON
1-14-2001, AND OR AFTER 3-1-2001
BEFORE 3-1-2001
(1) User fee for a request for a determination letter from $275 $275
a director. The user fee for each determination letter request
governed by Rev. Proc. 2001-1 (this revenue procedure).
(2) User fee for a request for an advance pricing agreement See Rev. Proc. 96-53 See Rev. Proc. 96-53
or a renewal of an advance pricing agreement.
(3) User fee for a request for a letter ruling or closing

agreement. Except for the user fees for advance pricing
agreements and renewals, the reduced fees provided in
paragraph (A)(4) of this appendix, the user fees provided in
paragraph (A)(5) of this appendix, and the exemptions provided
in section 15.04 of Rev. Proc. 2001-1 (this revenue procedure),
the user fee for each request for a letter ruling or closing
agreement under the jurisdiction of the Associate Chief Counsel
(Corporate), the Associate Chief Counsel (Financial Institutions
& Products), the Associate Chief Counsel (Income Tax &
Accounting), the Associate Chief Counsel (International),
the Associate Chief Counsel (Passthroughs & Special Industries),
the Associate Chief Counsel (Procedure and Administration),
or the Division Counsel/Associate Chief Counsel (Tax Exempt
and Government Entities) is as follows:
(a) Accounting periods
(i) Form 1128 (except as provided in paragraph (A)(4)(a)

or (b) of this appendix) $600 $600
(ii) Requests made on Part II of Form 2553 to use a fiscal

year based on a business purpose (except as provided
in paragraph (A)(4)(a) or (b) of this appendix) $600 $600
(iii) Letter ruling requests for extensions of time to

file Form 1128, Form 8716, or Part II of Form
2553 under § 301.9100-3 (except as provided in
paragraph (A)(4)(a) or (b) of this appendix) $700 $1,200
(b) Changes in Accounting Methods
(i) Form 3115 (except as provided in paragraph

(A)(4)(a) or (b), or (5)(b) of this appendix) $1,200 $1,200
(ii) Letter ruling requests for extensions of time to file

Form 3115 under § 301.9100-3 (except as provided
in paragraph (A)(4)(a) or (b), or (5)(c) of this appendix) $700 $1,200
January 2, 2001 64 2001–1 I.R.B.

NOTE: No user fee is required if the
change in accounting period or accounting
method is permitted to be made pursuant
to a published automatic change revenue
procedure. See section 9.03 of Rev. Proc.
2001-1 (this revenue procedure) for the list
of automatic change revenue procedures
published and/or in effect as of December 31, 2000.
(c) All other letter ruling requests (which includes

accounting period and accounting method requests
other than those properly submitted on Form 1128,
Part II of Form 2553, or Form 3115) (except as
provided in paragraph (A)(4)(a) or (b), or
(5)(a) of this appendix) $5,000 $6,000
(d) Requests for closing agreements on a proposed

transaction or on a completed transaction before
a return for the transaction has been filed in which
a letter ruling on that transaction is not requested
or issued (except as provided in paragraph (A)(4)(a)
or (b) of this appendix) $5,000 $6,000
NOTE: A taxpayer that receives relief under § 301.9100-3

(for example, an extension of time to file Form 3115)
will be charged a separate user fee for the letter ruling
request on the underlying issue (for example, the
accounting period or accounting method application).
(4) Reduced user fee for a request for a letter ruling or

closing agreement. A reduced user fee is provided in the
following situations if the person provides the certification
described in paragraph (B)(1) of this appendix:
(a) Request involves a personal tax issue from a person

with gross income (as determined under paragraphs
(B)(2) and (4) of this appendix) of less than $250,000 $500 $500
(b) Request involves a business-related tax issue (for

example, including home-office expenses, residential
rental property issues) from a person with gross
income (as determined under paragraphs (B)(3) and
(4) of this appendix) of less than $1 million $500 $500
(5) User fee for substantially identical letter ruling requests

or identical accounting method changes. If the requirements
of section 15.07 of Rev. Proc. 2001-1 (this revenue procedure)
are satisfied, the user fee for the following situations is as follows:
(a) Substantially identical letter rulings requested
Situations in which a taxpayer requests substantially

identical letter rulings for multiple entities with a
common member or sponsor, or for multiple members
of a common entity, for each additional letter ruling
request after the $5,000 fee (or $6,000 fee for requests
postmarked on or after March 1, 2001) or $500 reduced fee,
as applicable, has been paid for the first letter ruling request $200 $200
2001–1 I.R.B. 65 January 2, 2001

NOTE: Each entity or member that is entitled to the user
fee under paragraph (A)(5)(a) of this appendix, that receives
relief under § 301.9100-3 (for example, an extension of
time to file an election) will be charged a separate user
fee for the letter ruling request on the underlying issue.
(b) Identical accounting method change requested on a single Form 3115
Situations in which a parent corporation requests the

identical accounting method change on a single Form
3115 on behalf of more than one member of a consolidated
group, for each additional member of the group seeking the
identical accounting method change on the same Form 3115
after the $1,200 fee or $500 reduced fee, as applicable, has
been paid for the first member of the group $45 $45
(c) Extension of time requested to file Form 3115 for an identical accounting method change
Situations in which a parent corporation requests an

extension of time to file Form 3115 under § 301.9100-3
for the identical accounting method change on behalf of
more than one member of a consolidated group, for each
additional member of the group seeking the identical
accounting method change on the same application after
the $700 fee (or $1,200 fee for requests postmarked on
or after March 1, 2001) or $500 reduced fee, as applicable,
has been paid for the first member of the group $50 $50
NOTE: A parent corporation and each member of a

consolidated group that is entitled to the user fee under
paragraph (A)(5)(b) of this appendix, that receives an
extension of time to file Form 3115 under § 301.9100-3
will be charged a separate user fee for the accounting
method application.
(B) PROCEDURAL MATTERS
(1) Required certification. A person seeking a reduced user fee under paragraph (A)(4) of this appendix must provide the follow-
ing certification in order to obtain the reduced user fee:
(a) If a person is seeking a reduced user fee under paragraph (A)(4)(a) of this appendix, the person must certify in the request that
his, her, or its gross income, as defined under paragraphs (B)(2) and (4) of this appendix, is less than $250,000 for the last full (12
months) taxable year ending before the date the request is filed.
(b) If a person is seeking a reduced user fee under paragraph (A)(4)(b) of this appendix, the person must certify in the request
that his, her, or its gross income, as defined under paragraphs (B)(3) and (4) of this appendix, is less than $1 million for the last full
(12 months) taxable year ending before the date the request is filed.
(2) Gross income for a request involving a personal tax issue. For purposes of the reduced user fee provided in paragraph
(A)(4)(a) of this appendix of—
(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to “total
income” as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period.
“Total income” is a line item on federal tax returns. For example, if the 2000 Form 1040, U.S. Individual Income Tax Return, is the
most recent 12-month taxable year return filed by a U.S. citizen, “total income” on the Form 1040 is the amount entered on line 22.
January 2, 2001 66 2001–1 I.R.B.

In the case of a request for a letter ruling or closing agreement from a domestic estate or trust that, at the time the request is filed,
has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this appendix will apply
if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the last federal income tax return
filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to
be made to total income described in this paragraph (B)(2)(a), is less than $250,000. In this case, the executor or administrator of
the decedent’s estate or the grantor must provide the certification required under paragraph (B)(1) of this appendix.
(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to “total effectively connected
income” as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the
date the request is filed, plus any income for the period from United States or foreign sources that is not taxable by the United States,
whether by reason of § 103, an income tax treaty, § 871(h) (regarding portfolio interest), or otherwise, plus the total amount of any
fixed or determinable annual or periodical income from United States sources, the United States tax liability for which is satisfied
by withholding at the source. “Total effectively connected income” is a line item on federal tax returns. For example, if the 1999
Form 1040NR, U.S. Nonresident Alien Income Tax Return, is the most recent 12-month taxable year return filed by a nonresident
alien individual, “total effectively connected income” on the Form 1040NR is the amount entered on line 23.
In the case of a request for a letter ruling or closing agreement from a foreign estate or trust that, at the time the request is filed,
has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this appendix will apply
if the decedent’s or (in the case of an individual grantor) the grantor’s total income or total effectively connected income, as rele-
vant, as reported on the last federal income tax return filed for a full taxable year ending before the date of death or the date of the
transfer, taking into account any additions required to be made to total income or total effectively connected income described
respectively in paragraph (B)(2)(a) of this appendix or in this paragraph (B)(2)(b), is less than $250,000. In this case, the executor
or administrator of the decedent’s estate or the grantor must provide the certification required under paragraph (B)(1) of this appen-
dix.
(3) Gross income for a request involving a business-related tax issue. For purposes of the reduced user fee provided in para-
graph (A)(4)(b) of this appendix of—
(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to gross income
as defined under paragraph (B)(2)(a) of this appendix, plus “cost of goods sold” as reported on the same federal income tax return.
(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to gross income as defined under
paragraph (B)(2)(b) of this appendix, plus “cost of goods sold” as reported on the same federal income tax return.
(c) Domestic partnerships and corporations, “gross income” is equal to “total income” as reported on their last federal income
tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus “cost of goods sold”
as reported on the same federal income tax return, plus any interest income not subject to tax under § 103 (interest on state and local
bonds) for that period. If a domestic partnership or corporation is not subject to tax, “total income” and “cost of goods sold” are the
amounts that the domestic partnership or corporation would have reported on the federal income tax return if the domestic partner-
ship or corporation were subject to tax.
“Cost of goods sold” and “total income” are line items on federal tax returns. For example, if the 2000 Form 1065, U.S.
Partnership Return of Income, is the most recent 12-month taxable year return filed by a domestic partnership, “cost of goods sold”
and “total income” on the Form 1065 are the amounts entered on lines 2 and 8, respectively, and if the 2000 Form 1120, U.S.
Corporation Income Tax Return, is the most recent 12-month taxable year return filed by a domestic corporation, “cost of goods
sold” and “total income” on the Form 1120 are the amounts entered on lines 2 and 11, respectively.
If, at the time the request is filed, a domestic partnership or corporation subject to tax has not filed a federal income tax return for
a full taxable year, the reduced user fee in paragraph (A)(4)(b) of this appendix will apply if, in the aggregate, the partners’ or the
shareholders’ gross income (as defined in paragraph (B)(3)(a), (b), (c), or (d) of this appendix, as applicable) is less than $1 million
for the last full taxable year ending before the date the request is filed. In this case, the partners or the shareholders must provide
the certification required under paragraph (B)(1) of this appendix.
(d) Organizations exempt from income tax under “Subchapter F-Exempt Organizations” of the Code, “gross income” is
equal to the amount of gross receipts for the last full (12 months) taxable year ending before the date the request for a letter ruling
or closing agreement is filed.
2001–1 I.R.B. 67 January 2, 2001

(4) Special rules for determining gross income. For purposes of paragraphs (B)(2) and (3) of this appendix, the following rules
apply for determining gross income.
(a) Gross income of individuals, trusts, and estates.
(1) In the case of a request from a married individual, the gross incomes (as defined in paragraph (B)(2) or (3) of this appendix,
as applicable) of the applicant and the applicant’s spouse must be combined. This rule does not apply to an individual who is legally
separated from his or her spouse if the spouses do not file a joint income tax return with each other; and
(2) If there are two or more applicants filing the request, the gross incomes (as defined in paragraph (B)(2) or (3) of this appen-
dix, as applicable) of the applicants must be combined.
(b) Gross income of domestic partnerships and corporations.
(1) In the case of a request from a domestic corporation, the gross income (as defined in paragraph (B)(3) of this appendix) of
(i) all members of the applicant’s controlled group (as defined in § 1563(a)), and (ii) any related taxpayer that is involved in the
transaction on which the letter ruling or closing agreement is requested, must be combined; and
(2) In the case of a request from a domestic partnership, the gross income (as defined in paragraph (B)(3) of this appendix) of (i)
the partnership, and (ii) any partner who owns, directly or indirectly, 50 percent or more of the capital interest or profits interest in
the partnership, must be combined.
(c) Gross income of exempt organizations. If there are two or more organizations exempt from income tax under Subchapter
F filing the request, the gross receipts (as defined in paragraph (B)(3)(d) of this appendix) of the applicants must be combined.
January 2, 2001 68 2001–1 I.R.B.

APPENDIX B
SAMPLE FORMAT FOR A LETTER RULING REQUEST
INSTRUCTIONS
To assist you in preparing a letter ruling request, the Service is providing this sample format. You are not required to use this sam-
ple format. If your request is not identical or similar to the sample format, the different format will not defer consideration of your
request.
(Insert the date of request)

Insert either: Associate Chief Counsel (Insert one of the following: Corporate, Financial Institutions & Products, Income Tax &
Accounting, International, Passthroughs & Special Industries, or Procedure and Administration), or Division Counsel/Associate
Chief Counsel (Tax Exempt and Government Entities)
Attn: CC:PA:T
P.O. Box 7604
Dear Sir or Madam:
(Insert the name of the taxpayer) requests a ruling on the proper treatment of (insert the subject matter of the letter ruling request)
under section (insert the number) of the Internal Revenue Code.
[If the taxpayer is requesting expedited handling, a statement to that effect must be attached to, or contained in, the letter ruling request.
The statement must explain the need for expedited handling. See section 8.02(4) of Rev. Proc. 2001-1, 2001-1 I.R.B.1. Hereafter, all ref-
erences are to Rev. Proc. 2001-1 unless otherwise noted.]
A. STATEMENT OF FACTS
1. Taxpayer Information
[Provide the statements required by sections 8.01(1)(a) and (b).]
2. Description of Taxpayer’s Business Operations
[Provide the statement required by section 8.01(1)(c).]
3. Facts Relating to Transaction
[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling
request. This statement must include a detailed description of the transaction, including material facts in any accompanying
documents, and the business reasons for the transaction. See sections 8.01(1)(d), 8.01(1)(e), and 8.01(2).]
B. RULING REQUESTED
[The ruling request should contain a concise statement of the ruling requested by the taxpayer. It is preferred that the language of
the requested ruling be exactly the same that the taxpayer wishes to receive.]
C. STATEMENT OF LAW
[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion and identify any pending
legislation that may affect the proposed transaction. The taxpayer also is encouraged to identify and discuss any authorities
believed to be contrary to the position advanced in the ruling request. See sections 8.01(6), 8.01(8), 8.01(9), and 8.01(10).]
2001–1 I.R.B. 69 January 2, 2001

D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also is encouraged to identify
and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 8.01(3), 8.01(6),
8.01(8), 8.01(9), and 8.01(10).]
E. CONCLUSION
[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]
F. PROCEDURAL MATTERS
1. Revenue Procedure 2001-1 Statements
a. [Provide the statement required by section 8.01(4) regarding whether the same issue in the letter ruling request is in an earlier
return of the taxpayer or in a return for any year of a related taxpayer.]
b. [Provide the statement required by section 8.01(5)(a) regarding whether the Service previously ruled on the same or similar
issue for the taxpayer, a related taxpayer, or a predecessor.]
c. [Provide the statement required by section 8.01(5)(b) regarding whether the taxpayer, a related taxpayer, a predecessor, or any
representatives previously submitted a request (including an application for change in accounting method) involving the same
or similar issue but withdrew the request before a letter ruling or determination letter was issued.]
d. [Provide the statement required by section 8.01(5)(c) regarding whether the taxpayer, a related taxpayer, or a predecessor pre-
viously submitted a request (including an application for change in accounting method) involving the same or a similar issue
that is currently pending with the Service.]
e. [Provide the statement required by section 8.01(5)(d) regarding whether, at the same time as this request, the taxpayer or a re-
lated taxpayer is presently submitting another request (including an application for change in accounting method) involving
the same or similar issue to the Service.]
f. [If the letter ruling request involves the interpretation of a substantive provision of an income or estate tax treaty, provide the
statement required by section 8.01(6) regarding whether the tax authority of the treaty jurisdiction has issued a ruling on the
same or similar issue for the taxpayer, a related taxpayer, or a predecessor; whether the same or similar issue is being exam-
ined, or has been settled, by the tax authority of the treaty jurisdiction or is otherwise the subject of a closing agreement in that
jurisdiction; and whether the same or similar issue is being considered by the competent authority of the treaty jurisdiction.]
g. [Provide the statement required by section 8.01(8) regarding whether the law in connection with the letter ruling request is
uncertain and whether the issue is adequately addressed by relevant authorities.]
h. [If the taxpayer determines that there are no contrary authorities, a statement to that effect would be helpful. See section
8.01(9).]
i. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should contain
a statement to that effect. See section 8.02(7).]
j. [If the taxpayer is requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax) transmis-
sion, the ruling request should contain a statement to that effect. See section 8.02(5).]
k. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement to
that effect. See section 8.02(1).]
l. [If the taxpayer is seeking to obtain the user fee provided in paragraph (A)(5)(a) of Appendix A for substantially identical let-
ter rulings, the letter ruling request must contain the statements required by section 15.07.]
2. Administrative
January 2, 2001 70 2001–1 I.R.B.

a. [The ruling request should state: “The deletions statement and checklist required by Rev. Proc. 2001-1 are enclosed.” See
sections 8.01(11) and 8.01(18).]
b. [The ruling request should state: “The required user fee of $(Insert the amount of the fee) is enclosed.” Please note that the
check or money order must be in U.S. dollars and made payable to the Internal Revenue Service. See section 15 and Appen-
dix A.]
c. [If the taxpayer’s authorized representative is to sign the letter ruling request or is to appear before the Service in connection
with the request, the ruling request should state: “A Power of Attorney is enclosed.” See sections 8.01(13), 8.01(14), and
8.02(2).]
Very truly yours,

(Insert the name of the taxpayer or the
taxpayer’s authorized representative)
By:
Signature Date
Typed or printed name of

person signing request
DECLARATION: [See section 8.01(15).]
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my
knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and
complete.
(Insert the name of the taxpayer)
By:
Signature Title Date

person signing request
[If the taxpayer is a corporation that is a member of an affiliated group filing consolidated returns, the above declaration must also
be signed and dated by an officer of the common parent of the group. See section 8.01(15).]
2001–1 I.R.B. 71 January 2, 2001

APPENDIX C
CHECKLIST
IS YOUR LETTER RULING REQUEST COMPLETE?
INSTRUCTIONS
The Service will be able to respond more quickly to your letter ruling request if it is carefully prepared and complete. To
ensure that your request is in order, use this checklist. Complete the five items of information requested before the checklist.
Answer each question by circling “Yes,” “No,” or “N/A.” When a question contains a place for a page number, insert the page
number (or numbers) of the request that gives the information called for by a yes answer to a question. Sign and date the check-
list (as taxpayer or authorized representative) and place it on top of your request.
If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with
the request, or the request will either be returned to you or substantive consideration of it will be deferred until a completed check-
list is submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist
will not either cause the return of your request or defer substantive consideration of your request. However, you should
still complete as much of the checklist as possible and submit it with your request.
TAXPAYER’S NAME
TAXPAYER’S I.D. NO.
ATTORNEY/P.O.A.
PRIMARY CODE SECTION
CIRCLE ONE ITEM
Yes No 1. Does your request involve an issue under the jurisdiction of the Associate Chief Counsel (Corporate),
the Associate Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income
Tax & Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel
(Passthroughs & Special Industries), the Associate Chief Counsel (Procedure and Administration), or the
Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities)? See section 3 of
Rev. Proc. 2001-1, 2001-1 I.R.B. 1. For issues under the jurisdiction of other offices, see section 4 of
Rev. Proc. 2001-1. (Hereafter, all references are to Rev. Proc. 2001-1 unless otherwise noted.)
Yes No 2. Have you read Rev. Proc. 2001-3, 2001-1 I.R.B. 111, and Rev. Proc. 2001-7, 2001-1 I.R.B. 236, to see if
part or all of the request involves a matter on which letter rulings are not issued or are ordinarily not issued?
Yes No N/A 3. If your request involves a matter on which letter rulings are not ordinarily issued, have you given com-
pelling reasons to justify the issuance of a letter ruling? Before preparing your request, you may want to call
the branch in the Office of Associate Chief Counsel (Corporate), the Office of Associate Chief Counsel (Fi-
nancial Institutions & Products), the Office of Associate Chief Counsel (Income Tax & Accounting), the Of-
fice of Associate Chief Counsel (International), the Office of Associate Chief Counsel (Passthroughs & Spe-
cial Industries), the Office of Associate Chief Counsel (Procedure and Administration), or the Office of
Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) responsible for substan-
tive interpretations of the principal Internal Revenue Code section on which you are seeking a letter ruling to
discuss the likelihood of an exception. For matters under the jurisdiction of—
(a) the Office of Associate Chief Counsel (Corporate), the Office of Associate Chief Counsel (Finan-
cial Institutions & Products), the Office of Associate Chief Counsel (Income Tax & Accounting), the Of-
fice of Associate Chief Counsel (Passthroughs & Special Industries), or the Office of Division Coun-
sel/Associate Chief Counsel (Tax Exempt and Government Entities), the appropriate branch to call may
be obtained by calling (202) 622-7560 (not a toll-free call);
(b) the Office of the Associate Chief Counsel (International), the appropriate branch to call may be
obtained by calling (202) 622-3800 (not a toll-free call); or
January 2, 2001 72 2001–1 I.R.B.
(c) the Office of the Associate Chief Counsel (Procedure and Administration), the appropriate branch
to call may be obtained by calling (202) 622-3400 (not a toll-free call).
Yes No N/A 4. If the request deals with a completed transaction, have you filed the return for the year in which the
Page transaction was completed? See sections 5.01, 5.05, 5.06, 5.07, 5.08, and 5.09.
Yes No 5. Are you requesting a letter ruling on a hypothetical situation or question? See section 7.02.
Yes No 6. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 7.02.
Yes No 7. Are you requesting the letter ruling for only part of an integrated transaction? See sections 7.03 and
8.01(1).
Yes No 8. Are you requesting the letter ruling for a business, trade, industrial association, or similar group con-
cerning the application of tax law to its members? See section 5.12.
Yes No 9. Are you requesting the letter ruling for a foreign government or its political subdivision? See section
5.13.
Yes No 10. Have you included a complete statement of all the facts relevant to the transaction? See section 8.01(1).
Pages
Yes No N/A 11. Have you submitted with the request true copies of all wills, deeds, and other documents relevant to
the transaction, and labeled and attached them in alphabetical sequence? See section 8.01(2).
Yes No N/A 12. Have you submitted with the request a copy of all applicable foreign laws, and certified English
translations of documents that are in a language other than English or of foreign laws in cases where Eng-
lish is not the official language of the foreign country involved? See section 8.01(2).
Yes No 13. Have you included, rather than merely incorporated by reference, all material facts from the documents
Pages in the request? Are they accompanied by an analysis of their bearing on the issues that specifies the doc-
ument provisions that apply? See section 8.01(3).
Yes No 14. Have you included the required statement regarding whether the same issue in the letter ruling request
Page is in an earlier return of the taxpayer or in a return for any year of a related taxpayer? See section 8.01(4).
Yes No 15. Have you included the required statement regarding whether the Service previously ruled on the same or
Page similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 8.01(5)(a).
Yes No 16. Have you included the required statement regarding whether the taxpayer, a related taxpayer, a predeces-
Page sor, or any representatives previously submitted a request (including an application for change in ac-
counting method) involving the same or similar issue but withdrew the request before the letter ruling or
determination letter was issued? See section 8.01(5)(b).
Yes No 17. Have you included the required statement regarding whether the taxpayer, a related taxpayer, or a prede-
Page cessor previously submitted a request (including an application for change in accounting method) involv-
ing the same or similar issue that is currently pending with the Service? See section 8.01(5)(c).
Yes No 18. Have you included the required statement regarding whether, at the same time as this request, the taxpayer
Page or a related taxpayer is presently submitting another request (including an application for change in ac-
counting method) involving the same or similar issue to the Service? See section 8.01(5)(d).
Yes No N/A 19. If your request involves the interpretation of a substantive provision of an income or estate tax treaty,
Page have you included the required statement regarding whether the tax authority of the treaty jurisdiction has
issued a ruling on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor; whether
the same or similar issue is being examined, or has been settled, by the tax authority of the treaty jurisdic-
tion or is otherwise the subject of a closing agreement in that jurisdiction; and whether the same or similar
issue is being considered by the competent authority of the treaty jurisdiction? See section 8.01(6).
2001–1 I.R.B. 73 January 2, 2001

Yes No N/A 20. If your request is for recognition of Indian tribal government status or status as a political subdivision
Page of an Indian tribal government, does your request contain a letter from the Bureau of Indian Affairs re-
garding the tribe’s status? See section 8.01(7), which states that taxpayers are encouraged to submit this
letter with the request and provides the address for the Bureau of Indian Affairs.
Yes No 21. Have you included the required statement of relevant authorities in support of your views? See sec-
Pages tion 8.01(8).
Yes No 22. Have you included the required statement regarding whether the law in connection with the request
Page is uncertain and whether the issue is adequately addressed by relevant authorities? See section 8.01(8).
Yes No 23. Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations,
Pages notices, revenue rulings, or revenue procedures that you determined to be contrary to the position advanced?
See section 8.01(9), which states that taxpayers are encouraged to inform the Service of such authorities.
Yes No N/A 24. If you determined that there are no contrary authorities, have you included a statement to this effect
Page in your request? See section 8.01(9).
Yes No N/A 25. Have you included in your request a statement identifying any pending legislation that may affect the
Page proposed transaction? See section 8.01(10).
Yes No 26. Is the request accompanied by the deletions statement required by § 6110? See section 8.01(11).
Yes No 27. Have you (or your authorized representative) signed and dated the request? See section 8.01(12).
Page
Yes No N/A 28. If the request is signed by your representative or if your representative will appear before the Service
in connection with the request, is the request accompanied by a properly prepared and signed power of
attorney with the signatory’s name typed or printed? See section 8.01(14).
Yes No 29. Have you included, signed, and dated the penalties of perjury statement in the format required by
Page section 8.01(15)?
Yes No N/A 30. Are you submitting your request in duplicate if necessary? See section 8.01(16).
Yes No N/A 31. If you are requesting separate letter rulings on different issues involving one factual situation, have
Pages you included a statement to that effect in each request? See section 8.02(1).
Yes No N/A 32. If you want copies of the letter ruling sent to more than one representative, does the power of attor-
ney contain a statement to that effect? See section 8.02(2)(a).
Yes No N/A 33. If you want the original of the letter ruling to be sent to a representative, does the power of attorney
contain a statement to that effect? See section 8.02(2)(b).
Yes No N/A 34. If you do not want a copy of the letter ruling to be sent to any representative, does the power of attor-
ney contain a statement to that effect? See section 8.02(2)(c).
Yes No N/A 35. If you are making a two-part letter ruling request, have you included a summary statement of the
facts you believe to be controlling? See section 8.02(3).
Yes No N/A 36. If you want your letter ruling request to be processed ahead of the regular order or by a specific date,
Page have you requested expedited handling in the manner required by section 8.02(4) and stated a compelling
need for such action in the request?
Yes No N/A 37. If you are requesting a copy of any document related to the letter ruling request to be sent by facsimile
Page (fax) transmission, have you included a statement to that effect? See section 8.02(5).
January 2, 2001 74 2001–1 I.R.B.

Yes No N/A 38. If you want to have a conference on the issues involved in the request, have you included a request
Page for conference in the letter ruling request? See section 8.02(7).
Yes No 39. Have you included the correct user fee with the request and is your check or money order in U.S. dol-
lars and payable to the Internal Revenue Service? See section 15 and Appendix A to determine the cor-
rect amount.
Yes No N/A 40. If your request involves a personal tax issue and you qualify for the reduced user fee when gross
Page __ income is less than $250,000, have you included the required certification? See paragraphs (A)(4)(a) and
(B)(1) of Appendix A.
Yes No N/A 41. If your request involves a business-related tax issueand you qualify for the reduced user fee when
Page __ gross income is less than $1 million, have you included the required certification? See paragraphs
(A)(4)(b) and (B)(1) of Appendix A.
Yes No N/A 42. If you qualify for the user fee for substantially identical letter rulings, have you included the required
Page information? See section 15.07(2) and paragraph (A)(5)(a) of Appendix A.
Yes No N/A 43. If you qualify for the user fee for a § 301.9100 request to extend the time for filing an identical
Page accounting method change on a single Form 3115, have you included the required information? See sec-
tion 15.07(3) and paragraph (A)(5)(c) of Appendix A.
Yes No N/A 44. If your request is covered by any of the checklists, guideline revenue procedures, notices, safe har-
bor revenue procedures, or other special requirements listed in section 9, have you complied with all of
the requirements of the applicable revenue procedure or notice?
Rev. Proc. List other applicable revenue procedures or notices,

including checklists, used or relied upon in the preparation
of this letter ruling request (Cumulative Bulletin or Internal
Revenue Bulletin citation not required).
Yes No N/A 45. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with
Page all of the requirements in section 12.11?
Yes No 46. Have you addressed your request to the attention of the Associate Chief Counsel (Corporate), the As-
sociate Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax &
Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs &
Special Industries), the Associate Chief Counsel (Procedure and Administration), or the Division Coun-
sel/Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate? The mailing ad-
dress is:

Attn: CC:PA:T
P.O. Box 7604

2001–1 I.R.B. 75 January 2, 2001

The package should be marked: RULING REQUEST SUBMISSION. Improperly
addressed requests may be delayed (sometimes for over a week) in reaching CC:PA:T for
initial processing.
Signature Title or Authority Date

person signing checklist
January 2, 2001 76 2001–1 I.R.B.

APPENDIX D
LIST OF SMALL BUSINESS/SELF-EMPLOYED DIVISION (SB/SE)

COMPLIANCE AREA DIRECTORS FOR REQUESTING
DETERMINATION LETTERS
Requests for determination letters under Rev. Proc. 2001-1 from taxpayers under the jurisdiction of SB/SE should be sent to the
appropriate address listed below.
- Area 1, Area Director, Boston

P.O. Box 9112, Stop 11300, Boston, MA 02203
SB/SE taxpayers located in Maine, New Hampshire, Connecticut, Rhode Island,

Massachusetts, Vermont
- Area 2, Area Director, New York City

290 Broadway, New York, NY 10007
SB/SE taxpayers located in New York
- Area 3, Area Director, Philadelphia

600 Arch Street, Room 7400, Philadelphia, PA 19106
SB/SE taxpayers located in Pennsylvania, New Jersey
- Area 4, Area Director, Baltimore

31 Hopkins Plaza, Baltimore, MD 21202
SB/SE taxpayers located in Delaware, Maryland, Virginia, North Carolina, South Carolina
- Area 5, Area Director, Jacksonville

400 Bay Street, Jacksonville, FL 32202
SB/SE taxpayers located in Florida
- Area 6, Area Director, Detroit

477 Michigan Avenue, Detroit, MI 48180
SB/SE taxpayers located in Michigan, Kentucky, Ohio, West Virginia
- Area 7, Area Director, Chicago

230 S. Dearborne Street, 100CHI, Chicago, IL 60604
SB/SE taxpayers located in Wisconsin, Illinois, Indiana
- Area 8, Area Director, Nashville

801 Broadway, MDP1, Nashville, TN 37203
SB/SE taxpayers located in Georgia, Tennessee, Alabama, Mississippi, Louisiana
- Area 9, Area Director, St. Paul

316 North Robert Street, Stop 1000, St. Paul, MN
SB/SE taxpayers located in North Dakota, South Dakota, Missouri, Nebraska, Minnesota, Iowa, Kansas
2001–1 I.R.B. 77 January 2, 2001

- Area 10, Area Director, Dallas
4050 Alpha Road, 1000 MSRO, Dallas, TX 75244
SB/SE taxpayers located in Texas, Oklahoma
- Area 11, Area Director, Denver

600 17th Street, Denver, CO 80202-2490
SB/SE taxpayers located in Colorado, Montana, Wyoming, New Mexico, Arizona, Nevada, Utah
- Area 12, Area Director, Seattle

915 Second Avenue, Seattle, WA 98174
SB/SE taxpayers located in Washington, Oregon, Alaska, Hawaii, Idaho
- Area 13, Area Director, Oakland

1301 Clay Street, Suite 1600-S, Oakland, CA 94612
SB/SE taxpayers located in Northern and Central California
- Area 14, Acting Area Director, Laguna Niguel

24000 Avila Road, Laguna Nigel, CA 92677
SB/SE taxpayers located in Southern California except for taxpayers located in Oakland, Los Angeles, El Segundo, El Monte
and Glendale which are Area 16 SB/SE taxpayers
- Area 15, Area Director, International

950 L’Enfant Plaza, SW, Washington, DC 20024
International SB/SE taxpayers
- Area 16, Area Director, Los Angeles

300 N. Los Angeles Street, Los Angeles, CA 90012
SB/SE taxpayers located in Oakland, Los Angeles, El Segundo, El Monte, Glendale
January 2, 2001 78 2001–1 I.R.B.

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability.
Rev. Proc. 2001–2
TABLE OF CONTENTS

PURPOSE OF THIS REVENUE
PROCEDURE?
SECTION 2. WHAT IS p. 84
TECHNICAL ADVICE?

MAY TECHNICAL ADVICE BE
REQUESTED UNDER THIS .01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate), the
PROCEDURE? Associate Chief Counsel (Financial Institutions & Products), the Associate
Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel
(International), the Associate Chief Counsel (Passthroughs & Special Indus-
tries), the Associate Chief Counsel (Procedure and Administration), or the
Division Counsel/Associate Chief Counsel (Tax Exempt and Government
Entities)
.02 Issues involving shipowners’ protection and indemnity associations and cer-
tain homeowners associations

MUST TECHNICAL ADVICE BE
REQUESTED UNDER DIFFERENT .01 Alcohol, tobacco, and firearms taxes
PROCEDURES?
.02 Tax exempt and government entities
.03 Farmers’ cooperatives
SECTION 5. MAY TECHNICAL p. 86

ADVICE BE REQUESTED .01 A § 301.9100 request is a letter ruling request
UNDER § 301.9100 DURING
THE COURSE OF AN .02 Period of limitations
EXAMINATION?
.03 Address to send a § 301.9100 request
.04 If the return is being examined by a field office or considered by an area office
or a federal court, the taxpayer must notify the national office and the national
office will notify the director, appeals officer, or government counsel
SECTION 6. WHO IS p. 87
RESPONSIBLE FOR
REQUESTING TECHNICAL .01 Director or area director, appeals, determines whether to request
ADVICE? technical advice
.02 Taxpayer may ask that issue be referred for technical advice
SECTION 7. WHEN SHOULD p. 87

TECHNICAL ADVICE BE
REQUESTED? .01 Uniformity of position lacking
.02 When technical advice can be requested
2001–1 I.R.B. 79 January 2, 2001

.03 At the earliest possible stage

PRE-SUBMISSION
CONFERENCES SCHEDULED? .01 Pre-submission conference generally is permitted when the field or area of-
fice likely will request technical advice and all parties agree to request the
conference
.02 Purpose of a pre-submission conference
.03 Request for a pre-submission conference must be submitted in writing by

the field or area office
.04 Branch will contact the field or area office to arrange the pre-submission
conference
.05 Pre-submission conference generally held in person
.06 Certain information required to be submitted to the national office prior to

the pre-submission conference
.07 Pre-submission conference may not be taped
.08 Discussion of substantive issues is not binding on the Service
SECTION 9. WHAT MUST BE p. 89

INCLUDED IN THE REQUEST
FOR TECHNICAL ADVICE? .01 Statement of issues, facts, law, and arguments, submission of relevant for-
eign laws and documents in a language other than English, and statement re-
garding interpretation of an income or estate tax treaty
.02 Statement identifying information to be deleted from public inspection
.03 Transmittal Form 4463, Request for Technical Advice
.04 Number of copies of request to be submitted
.05 Power of attorney

REQUESTS HANDLED?
.01 Taxpayer notified
.02 Conference offered
.03 If the taxpayer disagrees with the Service’s statement of facts
.04 If the Service disagrees with the taxpayer’s statement of facts
.05 If the interpretation of a foreign law or foreign document is a material fact
.06 If the taxpayer has not submitted the required deletions statement
.07 Section 6104 of the Internal Revenue Code (Applications for exemption and
letter rulings issued to certain exempt organizations open to public inspection)
.08 Criminal or civil fraud cases
January 2, 2001 80 2001–1 I.R.B.

SECTION 11. HOW DOES A p. 95
TAXPAYER APPEAL A .01 Taxpayer notified of decision not to seek technical advice
DIRECTOR’S OR AREA
DIRECTOR, APPEALS’, .02 Taxpayer may appeal decision not to seek technical advice
DECISION NOT TO SEEK
TECHNICAL ADVICE? .03 Territory manager or area director, appeals, determines whether technical
advice will be sought
.04 Territory manager’s or area director, appeals’, decision may be reviewed but
not appealed

REQUESTS FOR TECHNICAL
ADVICE WITHDRAWN? .01 Taxpayer notified
.02 National office may provide views

.01 If requested, offered to the taxpayer when adverse technical advice proposed
.02 Normally held within 21 days of contact with the taxpayer
.03 21-day period will be extended if justified and approved
.04 Denial of extension cannot be appealed
.05 Entitled to one conference of right
.06 Conference may not be taped
.07 If requested and approved, conference will be delayed to address a request

for relief under § 7805(b)
.08 Service makes tentative recommendations
.09 Additional conferences may be offered
.10 Additional information submitted after the conference
.11 Under limited circumstances, may schedule a conference to be held by tele-

phone
SECTION 14. HOW IS STATUS p. 99

OF REQUEST OBTAINED?
.01 Taxpayer or the taxpayer’s representative may request status from the field
or area office
.02 National office will give status updates to the director or area director, ap-
peals
SECTION 15. HOW DOES THE p. 99

NATIONAL OFFICE PREPARE
THE TECHNICAL ADVICE .01 Delegates authority to branch chiefs
MEMORANDUM?
.02 Determines whether request has been properly made
.03 Contacts the field or area office to discuss issues
2001–1 I.R.B. 81 January 2, 2001

.04 Informs the field or area office if any matters in the request have been re-
ferred to another branch or office
.05 Informs the field or area office if additional information is needed
.06 Informs the field or area office of the tentative conclusion
.07 If a tentative conclusion has not been reached, gives date estimated for ten-
tative conclusion
.08 Advises the field or area office if tentative conclusion is changed
.09 Generally does not discuss the tentative conclusion with the taxpayer
.10 Advises the field or area office of final conclusions
.11 If needed, requests additional information
.12 Requests taxpayer to send additional information to the national office and a
copy to the director or area director, appeals
.13 Informs the taxpayer when requested deletions will not be made
.14 Prepares reply in two parts
.15 Routes replies to appropriate office
.16 Sends a copy of reply to appropriate division counsel
SECTION 16. HOW DOES A p. 103

FIELD OR AREA OFFICE
USE THE TECHNICAL .01 Generally applies advice in processing the taxpayer’s case
ADVICE?
.02 Discussion with the taxpayer
.03 Gives copy to the taxpayer
.04 Taxpayer may protest deletions not made
.05 When no copy is given to the taxpayer

EFFECT OF TECHNICAL
ADVICE? .01 Applies only to the taxpayer for whom technical advice was requested
.02 Usually applies retroactively
.03 Generally applied retroactively to modify or revoke prior technical advice
.04 Applies to continuing action or series of actions until specifically with-

drawn, modified, or revoked
.05 Applies to continuing action or series of actions until material facts change
.06 Does not apply retroactively under certain conditions
January 2, 2001 82 2001–1 I.R.B.

SECTION 18. HOW MAY p. 105
RETROACTIVE EFFECT
BE LIMITED? .01 Taxpayer may request that retroactivity be limited
.02 Form of request to limit retroactivity — continuing transaction before exam-

ination of return
.03 Form of request to limit retroactivity — in all other cases
.04 Taxpayer’s right to a conference

SIGNIFICANT CHANGES
HAVE BEEN MADE TO
REV. PROC. 2000–2?

PROCEDURE ON OTHER
DOCUMENTS?

REVENUE PROCEDURE?
INDEX p. 109
SECTION 1. WHAT IS THE This revenue procedure explains when and how the Associate Chief Counsel (Corporate),
PURPOSE OF THIS REVENUE the Associate Chief Counsel (Financial Institutions & Products), the Associate Chief
PROCEDURE? Counsel (Income Tax & Accounting), the Associate Chief Counsel (International), the As-
sociate Chief Counsel (Passthroughs & Special Industries), the Associate Chief Counsel
(Procedure and Administration), and the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities) give technical advice to a director or an area director,
appeals. It also explains the rights a taxpayer has when a director or an area director, ap-
peals, requests technical advice regarding a tax matter.
Operating divisions of the The Internal Revenue Service includes four operating divisions that are responsible for
Internal Revenue Service meeting the needs of the taxpayers they serve. These operating divisions are:
(1) Large and Mid-Size Business Division (LMSB), which generally serves corpora-
tions, S corporations, and partnerships with assets in excess of $5 million;
(2) Small Business/Self-Employed Division (SB/SE), which generally serves corpora-

tions, S corporations, and partnerships with assets less than or equal to $5 million; estates
and trusts; individuals filing an individual federal income tax return with accompanying
Schedule C (Profit or Loss from Business (Sole Proprietorship)), Schedule E (Supplemen-
tal Income and Loss), or Schedule F (Profit or Loss from Farming), or Form 2106 (Em-
ployee Business Expenses) or Form 2106-EZ (Unreimbursed Employee Business Ex-
penses); and individuals with international tax returns;
(3) Wage and Investment Division (W&I), which generally serves individuals with
wage and investment income only and with no international tax returns, filing an individ-
ual federal income tax return without accompanying Schedule C, E, or F, or Form 2106 or
Form 2106-EZ; and
Sec. 1
2001–1 I.R.B. 83 January 2, 2001
(4) Tax Exempt and Government Entities Division (TE/GE), which serves three distinct
taxpayer segments: employee plans, exempt organizations, and government entities.
Description of terms used in For purposes of this revenue procedure–

this revenue procedure
(1) any reference to director or field office refers to the Director, Field Operations,
LMSB, the Area Director, Field Compliance, SB/SE, or the Director, Compliance, W&I,
as appropriate, and their respective offices or, when appropriate, the Director, Interna-
tional, LMSB, the Director, Employee Plans Examinations, the Director, Exempt Organi-
zations Examinations, the Director, Federal, State & Local Governments, the Director, Tax
Exempt Bonds, or the Director, Indian Tribal Governments, and their respective offices;
(2) any reference to area director, appeals, refers to the Area Director, Appeals LMSB,
or the Area Director, Appeals SB/SE-TE/GE, as appropriate;
(3) any reference to territory manager refers to a territory manager, LMSB, a territory
manager, compliance, SB/SE, as appropriate, and, includes, when appropriate, the Em-
ployee Plans Examinations Area manager, the Exempt Organizations Examinations Area
manager, the Employee Plans Determinations manager, the Exempt Organizations Deter-
minations manager, the group manager, Federal, State & Local Governments, the man-
ager, field operations, Tax Exempt Bonds, or the group manager, Indian Tribal Govern-
ments;
(4) any reference to area office refers to Appeals LMSB Area Office or Appeals SB/SE-
TE/GE Area Office, as appropriate;
(5) any reference to appeals officer includes, when appropriate, the appeals team case
leader;
(6) the term “taxpayer” includes all persons subject to any provision of the Internal Rev-
enue Code (including issuers of § 103 obligations) and, when appropriate, their represen-
tatives; and
(7) the term “national office” refers to the Office of Associate Chief Counsel (Corpo-
rate), the Office of Associate Chief Counsel (Financial Institutions & Products), the Office
of Associate Chief Counsel (Income Tax & Accounting), the Office of Associate Chief
Counsel (International), the Office of Associate Chief Counsel (Passthroughs & Special
Industries), the Office of Associate Chief Counsel (Procedure and Administration), or the
Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Enti-
ties), as appropriate.
Updated annually The revenue procedure is updated annually as the second revenue procedure of the year,
but may be modified or amplified during the year.
SECTION 2. WHAT IS
TECHNICAL ADVICE? “Technical advice” means advice or guidance in the form of a memorandum furnished
by the national office upon the request of a director or an area director, appeals, submitted
in accordance with the provisions of this revenue procedure, in response to any technical
or procedural question that develops during any proceeding on the interpretation and prop-
er application of tax law, tax treaties, regulations, revenue rulings, notices, or other prece-
dents published by the national office to a specific set of facts. Such proceedings include:
(1) the examination of a taxpayer’s return; (2) the consideration of a taxpayer’s claim for
refund or credit; (3) any matter under examination or in appeals pertaining to tax-exempt
bonds or mortgage credit certificates; and (4) any other matter involving a specific tax-
payer under the jurisdiction of the territory manager or the area director, appeals. They
also include processing and considering nondocketed cases in an area office but do not
include cases in which the issue in the case is in a docketed case for any taxable year. If,
Sec. 2
January 2, 2001 84 2001–1 I.R.B.
however, a case is docketed for an estate tax issue of a taxpayer while a request for tech-
nical advice on the same issue of the same taxpayer is pending, the national office may
issue the technical advice memorandum if the appropriate appeals officer and government
counsel agree, by memorandum, to the issuance of the technical advice memorandum.
Technical advice helps Service personnel close cases and also helps establish and main-
tain consistent holdings throughout the Service. A director or an area director, appeals,
may raise an issue in any tax period, even though technical advice may have been asked
and furnished for the same or similar issue for another tax period.
Technical advice does not include legal advice furnished to the field or area office in
writing or orally, other than advice furnished pursuant to this revenue procedure. In accor-
dance with section 11.01 of this revenue procedure, 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 has provided legal advice, other than advice furnished pursuant to this rev-
enue procedure, to the field or area office on the matter.
SECTION 3. ON WHAT
ISSUES MAY TECHNICAL
ADVICE BE REQUESTED
UNDER THIS PROCEDURE?
Issues under the jurisdiction of .01 The instructions of this revenue procedure apply to requests for technical advice on
the Associate Chief Counsel any issue under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate
(Corporate), the Associate Chief Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income
Counsel (Financial Institutions & Tax & Accounting), the Associate Chief Counsel (International), the Associate Chief
Products), the Associate Chief Counsel (Passthroughs & Special Industries), or the Division Counsel/Associate Chief
Counsel (Income Tax & Accounting), Counsel (Tax Exempt and Government Entities), and on certain issues under the jurisdic-
the Associate Chief Counsel tion of the Associate Chief Counsel (Procedure and Administration). See section 3 of Rev.
(International), the Associate Chief Proc. 2001–1, this Bulletin, for a description of the principal subject matters of jurisdiction.
Counsel (Passthroughs & Special
Industries), the Associate Chief
Counsel (Procedure and
Administration), or the Division
Counsel/Associate Chief Counsel
(Tax Exempt and
Government Entities)
Issues involving shipowners’ .02 The jurisdiction of the Associate Chief Counsel (Passthroughs & Special Industries)
protection and indemnity extends to issuing technical advice under § 526 (shipowners’ protection and indemnity
associations and certain associations) and § 528 (certain homeowners associations).
homeowners associations
SECTION 4. ON WHAT
ISSUES MUST TECHNICAL
ADVICE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?
Alcohol, tobacco, and .01 The procedures for obtaining technical advice specifically applicable to federal
firearms taxes alcohol, tobacco, and firearms taxes under subtitle E of the Code are under the jurisdiction
of the Bureau of Alcohol, Tobacco and Firearms.
Tax exempt and .02 The procedures for obtaining technical advice specifically on issues under the juris-
government entities diction of the Commissioner, Tax Exempt and Government Entities Division, are found in
Rev. Proc. 2001–5, this Bulletin. However, the procedures under Rev. Proc. 2001–2 (this
revenue procedure) must be followed for obtaining technical advice on issues pertaining
Sec. 2
2001–1 I.R.B. 85 January 2, 2001
to tax-exempt bonds, Indian tribal governments, federal, state, or local governments, mort-
gage credit certificates, and deferred compensation plans under § 457.
Farmers’ cooperatives .03 Even though the Associate Chief Counsel (Passthroughs & Special Industries) has
jurisdiction for issuing technical advice under § 521, the procedures under Rev. Proc.
2001–5 and Rev. Proc. 90–27, 1990–1 C.B. 514, as well as § 601.201(n) of the Statement
of Procedural Rules (26 C.F.R. § 601.201(n) (2000)), must be followed.
SECTION 5. MAY TECHNICAL

ADVICE BE REQUESTED
UNDER § 301.9100 DURING THE
COURSE OF AN EXAMINATION?
A § 301.9100 request is a .01 A request for an extension of time for making an election or other application for
letter ruling request relief under § 301.9100–3 of the Procedure and Administration Regulations is a letter rul-
ing request even if the request is submitted after the examination of the taxpayer’s return
has begun or after the issues in the return are being considered by an area office or a fed-
eral court. Therefore, a § 301.9100 request should be submitted pursuant to Rev. Proc.
2001–1 (including the payment of the applicable user fee listed in Appendix A of Rev.
Proc. 2001–1). See section 5.02 of Rev. Proc. 2001–1.
Period of limitations .02 The running of any applicable period of limitations is not suspended for the period
during which a § 301.9100 request has been filed. See § 301.9100–3(d)(2). If the period
of limitations on assessment under § 6501(a) for the taxable year in which an election
should have been made, or any taxable year that would have been affected by the election
had it been timely made, will expire before receipt of a § 301.9100 letter ruling, the
Service ordinarily will not issue a § 301.9100 ruling. See § 301.9100–3(c)(1)(ii).
Therefore, the taxpayer must secure a consent under § 6501(c)(4) to extend the period of
limitations on assessment. Note that the filing of a claim for refund under § 6511 does not
extend the period of limitations on assessment. If § 301.9100 relief is granted, the Service
may require the taxpayer to consent to an extension of the period of limitations on assess-
ment. See § 301.9100– 3(d)(2).
Address to send a .03 Pursuant to section 8.03(1) of Rev. Proc. 2001–1, a § 301.9100 request, together
§ 301.9100 request with the appropriate user fee, must be submitted by the taxpayer to the Associate Chief
Counsel (Corporate), the Associate Chief Counsel (Financial Institutions & Products), the
Associate Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel
Associate Chief Counsel (Procedure and Administration), or the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate.
The package should be marked: RULING REQUEST SUBMISSION. See Appendix A
of Rev. Proc. 2001–1 for the appropriate user fee.
(1) A § 301.9100 request should be sent to the following address:

Attn: CC:PA:T
P.O. Box 7604

Sec. 5.03
January 2, 2001 86 2001–1 I.R.B.
(2) A § 301.9100 request may also be hand delivered between the hours of 8:15 a.m. and 5:00
p.m. to the courier’s desk at the main entrance of 1111 Constitution Avenue, N.W., Washington,
D.C.. A receipt will be given at the courier’s desk. The package should be addressed to:
Courier’s Desk
If the return is being examined .04 If the taxpayer’s return for the taxable year in which an election should have been
by a field office or considered by made or any taxable year that would have been affected by the election had it been timely
an area office or a federal court, made is being examined by a field office or considered by an area office or a federal court,
the taxpayer must notify the the taxpayer must notify the national office. See § 301.9100–3(e)(4)(i) and section 5.02(3)
national office and the national of Rev. Proc. 2001–1. The national office will notify the appropriate director, appeals offi-
office will notify the director, cer, or government counsel that a § 301.9100 request has been submitted to the national
appeals officer, or office. The examining officer, appeals officer, or government counsel is not authorized to
government counsel deny consideration of a § 301.9100 request. The letter ruling will be mailed to the taxpayer
and a copy will be sent to the appropriate Service official in the operating division that has
examination jurisdiction of the taxpayer’s tax return, appeals officer, or government counsel.
SECTION 6. WHO IS
RESPONSIBLE FOR
REQUESTING TECHNICAL
ADVICE?
Director or area director, .01 The director or area director, appeals, determines whether to request technical
appeals, determines whether advice on any issue being considered. Each request must be submitted through channels
to request technical advice and signed by a person who is authorized to sign for the director or area director, appeals.
Taxpayer may ask that issue .02 While a case is under the jurisdiction of a director or area director, appeals, a tax-
be referred for technical advice payer may request in writing or orally to the examining officer or appeals officer that an
issue be referred to the national office for technical advice.
SECTION 7. WHEN SHOULD

TECHNICAL ADVICE
BE REQUESTED?
Uniformity of position lacking .01 Technical advice should be requested when there is a lack of uniformity regarding
the disposition of an issue or when an issue is unusual or complex enough to warrant con-
sideration by the national office.
When technical advice .02 The provisions of this revenue procedure apply only to a case under the jurisdiction
can be requested of a director or an area director, appeals. Technical advice may also be requested on issues
considered in a prior appeals disposition, not based on mutual concessions for the same tax
period of the same taxpayer, if the area office that had the case concurs in the request.
A director may not request technical advice on an issue if an area office is currently con-
sidering an identical issue of the same taxpayer (or of a related taxpayer within the mean-
ing of § 267 or a member of an affiliated group of which the taxpayer is also a member
within the meaning of § 1504). A case remains under the jurisdiction of the director even
though an area office has the identical issue under consideration in the case of another tax-
payer (not related within the meaning of § 267 or § 1504) in an entirely different transac-
tion. With respect to the same taxpayer or the same transaction, when the issue is under
the jurisdiction of an area office and the applicability of more than one kind of federal tax
is dependent upon the resolution of that issue, a director may not request technical advice
on the applicability of any of the taxes involved.
Sec. 5.03
2001–1 I.R.B. 87 January 2, 2001
A director or an area director, appeals, also may not request technical advice on an issue
if the same issue of the same taxpayer (or of a related taxpayer within the meaning of
§ 267 or a member of an affiliated group of which the taxpayer is also a member within
the meaning of § 1504) is in a docketed case for the same taxpayer (or for a related tax-
payer or a member of an affiliated group of which the taxpayer is also a member) for any
taxable year. If, however, a case is docketed for an estate tax issue of a taxpayer while a
request for technical advice on the same issue of the same taxpayer is pending, the nation-
al office may issue the technical advice memorandum if the appropriate appeals officer and
government counsel agree, by memorandum, to the issuance of the technical advice mem-
orandum.
At the earliest possible stage .03 Once an issue is identified, all requests for technical advice should be made at the
earliest possible stage in any proceeding. The fact that the issue is raised late in the exam-
ination or appeals process should not influence, however, the field or area office’s decision
to request technical advice.
SECTION 8. HOW ARE

PRE-SUBMISSION
Pre-submission conference .01 In an effort to promote expeditious processing of requests for technical advice, the
generally is permitted when national office generally will meet with the field or area office and the taxpayer prior to
the field or area office likely the time a request for technical advice is submitted to the national office. In cases involv
will request technical advice ing very complex issues, the field or area office and the taxpayer are encouraged to request
and all parties agree to a pre-submission conference. A request for a pre-submission conference should be made,
request the conference however, only after the field or area office determines that it likely will request technical
advice and only after all parties agree that a pre-submission conference should be requested.
Purpose of a pre-submission .02 A pre-submission conference is intended to facilitate agreement between the parties
conference as to the appropriate scope of the request for technical advice, the factual information to
be included in the request for technical advice, any collateral issues that either should or
should not be included in the request for technical advice, and any other substantive or pro-
cedural considerations that will allow the national office to provide the parties with tech-
nical advice as expeditiously as possible.
A pre-submission conference is not intended to create an alternative procedure for deter-

mining the merits of the substantive positions advocated by the field or area office or by
the taxpayer. The conference is intended only to facilitate the overall technical advice
process.
Request for a pre-submission .03 A request for a pre-submission conference must be submitted in writing by the field
conference must be submitted or area office. The request should identify the associate or assistant chief counsel office,
in writing by the field as appropriate, expected to have jurisdiction over the request for technical advice. The
or area office request should include a brief explanation of the primary issue so that an assignment to the
appropriate branch can be made. Coordination with division counsel is strongly encour-
aged or, if the issue is under the jurisdiction of the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities), coordination with that office’s local
counsel is strongly encouraged. If the request involves a designated issue or industry
under the Office of Pre-Filing and Technical Guidance, LMSB, coordination with the
technical advisor is also strongly encouraged.
An original and one copy of the request should be submitted to the appropriate address
listed in section 9.03 of this revenue procedure.
Branch will contact the field .04 Within 5 working days after it receives the request, the branch assigned responsi-
or area office to arrange bility for conducting the pre-submission conference will contact the field or area office to
the pre-submission conference arrange a mutually convenient time for the parties to meet in the national office. The con-
ference generally should be held within 30 calendar days after the field or area office is
Sec. 8.04
January 2, 2001 88 2001–1 I.R.B.
contacted. The field or area office will be responsible for coordinating with the taxpayer
as well as with any other Service personnel whose attendance the field or area office
believes would be appropriate.
Pre-submission conference .05 Pre-submission conferences generally will be held in person in the national office.
generally held in person However, if the field or area office personnel or the taxpayer is unable to attend the con-
ference, the conference may be conducted by telephone.
Certain information required .06 At least 10 working days before the scheduled pre-submission conference, the field
to be submitted to the national or area office and the taxpayer should submit to the national office a statement of the per-
office prior to the tinent facts (including any facts in dispute), a statement of the issues that the parties would
pre-submission conference like to discuss, and any legal analysis, authorities, or background documents that the par-
ties believe would facilitate the national office’s understanding of the issues to be dis-
cussed at the conference. The legal analysis provided for the pre-submission conference
need not be as fully developed as the analysis that ultimately will accompany the request
for technical advice, but it should allow the national office to become reasonably informed
regarding the subject matter of the conference prior to the meeting. The field or area
office or the taxpayer should ensure that the national office receives a copy of any required
power of attorney, preferably on Form 2848, Power of Attorney and Declaration of
Representative.
Pre-submission conference .07 Because pre-submission conference procedures are informal, no tape, stenographic,
may not be taped or other verbatim recording of a conference may be made by any party.
Discussion of substantive .08 Any discussion of substantive issues at a pre-submission conference is advisory
issues is not binding only, is not binding on the Service in general or on the Office of Chief Counsel in partic-
on the Service ular, and cannot be relied upon as a basis for obtaining retroactive relief under the provi-
sions of § 7805(b).
SECTION 9. WHAT MUST

BE INCLUDED IN THE
REQUEST FOR
TECHNICAL ADVICE?
Statement of issues, facts, law, .01 Whether initiated by the taxpayer or by a field or area office, a request for techni-
and arguments, submission of cal advice must include the facts and the issues for which technical advice is requested; a writ-
relevant foreign laws and ten statement clearly stating the applicable law and the arguments in support of both the
documents in a language other Service’s and the taxpayer’s positions on the issue or issues; if applicable, the information
than English, and statement required in sections 9.01(4) and 9.01(5) of this revenue procedure with respect to the sub-
regarding interpretation of mission of relevant foreign laws and documents in a language other than English; and, if
an income or estate tax treaty applicable, the written statement required in section 9.01(6) of this revenue procedure with
respect to the interpretation of a substantive provision of an income or estate tax treaty.
In addition, as part of the original technical advice request, the taxpayer is encouraged
to request that if the Service requests additional information from the taxpayer, the Service
does so by facsimile (fax) transmission. The procedures for requesting such document to
be faxed are the same as those in section 15.11(1) of this revenue procedure.
(1) If taxpayer initiates request for technical advice, taxpayer must submit written
statement, copy of relevant foreign laws, and certified English translations of docu-
ments in a language other than English. If the taxpayer initiates the request for techni-
cal advice, the taxpayer must submit to the examining officer or appeals officer, at the time
the taxpayer initiates the request:
(a) a written statement—
(i) stating the facts and the issues;
Sec. 8.04
2001–1 I.R.B. 89 January 2, 2001
(ii) explaining the taxpayer’s position;
(iii) discussing any relevant statutory provisions, tax treaties, court decisions, reg-
ulations, revenue rulings, revenue procedures, notices, or any other authority supporting
the taxpayer’s position; and
(iv) stating the reasons for requesting technical advice;
(b) the information required in sections 9.01(4) and 9.01(5) of this revenue procedure
with respect to the submission of a copy of relevant foreign laws and certified English
translations of documents in a language other than English, if applicable; and
(c) the written statement required in section 9.01(6) of this revenue procedure with respect
to the interpretation of a substantive provision of an income or estate tax treaty, if applicable.
If the examining officer or appeals officer determines that technical advice will be
requested, the taxpayer’s statement, including the information required in sections 9.01(4),
9.01(5), and 9.01(6) of this revenue procedure, will be forwarded to the national office
with the request for technical advice.
(2) If the Service initiates request for technical advice, taxpayer is encouraged to
submit written statement, copy of relevant foreign laws, and certified English trans-
lations of documents in a language other than English. If the request for technical
advice is initiated by a field or area office, the taxpayer is encouraged to submit the writ-
ten statement and information described in section 9.01(1) of this revenue procedure. If
the taxpayer chooses to submit this statement and information, the taxpayer and the field
or area office should determine a mutually agreed date for the submission of the taxpay-
er’s statement and information so that it will be forwarded to the national office with the
request for technical advice.
If the request for technical advice is forwarded to the national office without the tax-
payer’s statement and information and if the taxpayer chooses to submit the statement and
information, the taxpayer must submit the statement and information to the national office
within 21 calendar days after the request for technical advice has been forwarded. The tax-
payer must also send a copy of the statement and information to the director or the area
director, appeals. The procedures for requesting an extension of the 21-day period and
receiving approval of such extension are the same as those in section 15.11(3) of this rev-
enue procedure. If the national office does not receive the taxpayer’s statement and infor-
mation within the 21-day period, plus extensions granted by the associate or assistant chief
counsel, as appropriate, the national office, at its discretion, may base its advice on the
facts provided by the field or area office.
(3) Statement of authorities contrary to taxpayer’s position. Whether the request for
technical advice is initiated by the taxpayer or by a field or area office, the taxpayer is also
encouraged to comment on any legislation (or pending legislation), tax treaties, regulations,
revenue rulings, revenue procedures, or court decisions contrary to the taxpayer’s position. If
the taxpayer determines that there are no contrary authorities, a statement to this effect would
be helpful. If the taxpayer does not furnish either contrary authorities or a 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.
(4) Relevant parts of all foreign laws. Whether initiated by the taxpayer or by a field
or area office, a request for technical advice, and other statements forwarded to the nation-
al office with the request, must include a copy of the relevant parts of all foreign laws,
including statutes, regulations, administrative pronouncements, and any other relevant
legal authority. The documents submitted must be in the official language of the country
involved and must be copied from an official publication of the foreign government or
Sec. 9.01(4)
January 2, 2001 90 2001–1 I.R.B.
another widely available, generally accepted publication. If English is not the official lan-
guage of the country involved, the submission must also include a copy of an English lan-
guage version of the relevant parts of all foreign laws. This translation must be: (a) from
an official publication of the foreign government or another widely available, generally
accepted publication; or (b) a certified English translation submitted in accordance with
section 9.01(5) of this revenue procedure.
The taxpayer or the field or area office must identify the title and date of publication,
including updates, of any widely available, generally accepted publication that it (or its
qualified translator) uses as a source for the relevant parts of the foreign law.
The taxpayer and the field or area office are encouraged to inform the national office
about and discuss the implications of any authority believed to interpret the foreign law,
such as pending legislation, treaties, court decisions, notices, or administrative decisions.
But see section 10.05 of this revenue procedure, stating that the national office may refuse
to provide technical advice if the interpretation of a foreign law or foreign document is a
material fact.
(5) Standards for acceptability of submissions of documents in a language other

than English and certified English translations of laws in a language other than
English. Whether initiated by the taxpayer or by a field or area office, a request for tech-
nical advice, and other statements forwarded to the national office with the request, must
include an accurate and complete certified English translation of the relevant parts of all
contracts, wills, deeds, agreements, instruments, trust documents, proposed disclaimers, or
other documents in a language other than English. If the taxpayer or the field or area office
chooses to submit certified English translations of foreign laws, those translations must be
based on an official publication of the foreign government or another widely available,
generally accepted publication. In either case, the translation must be that of a qualified
translator and must be attested to by the translator. The attestation must contain: (a) a
statement that the translation submitted is a true and accurate translation of the foreign lan-
guage document or law; (b) a statement as to the attestant’s qualifications as a translator
and as to that attestant’s qualifications and knowledge regarding income tax matters; and
(c) the attestant’s name and address.
(6) Statement regarding interpretation of a substantive provision of an income or

estate tax treaty. Whether initiated by the taxpayer or by a field or area office, a request
for technical advice involving the interpretation of a substantive provision of an income or
estate tax treaty must include a written statement regarding whether–
(a) the tax authority of the treaty jurisdiction has issued a ruling on the same or similar
issue for the taxpayer, a related taxpayer (within the meaning of § 267 or a member of an
affiliated group of which the taxpayer is also a member within the meaning of § 1504), or
any predecessor;
(b) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is
being examined, or has been settled, by the tax authority of the treaty jurisdiction or is oth-
erwise the subject of a closing agreement in that jurisdiction; and
(c) the same or similar issue for the taxpayer, a related taxpayer, or any predecessor is
being considered by the competent authority of the treaty jurisdiction.
Statement identifying .02 The text of a technical advice memorandum is open to public inspection under
information to be deleted § 6110(a). The Service deletes certain information from the text before it is made avail-
from public inspection able for inspection. To help the Service make the deletions required by § 6110(c), the tax-
payer must provide a statement indicating the deletions desired (“deletions statement”). If
the taxpayer does not submit the deletions statement, the Service will follow the proce-
dures in section 10.06 of this revenue procedure.
Sec. 9.01(4)
2001–1 I.R.B. 91 January 2, 2001
A taxpayer who wants only names, addresses, and identifying numbers deleted should
state this in the deletions statement. If the taxpayer wants more information deleted, the
deletions statement must be accompanied by a copy of the technical advice request and
supporting documents on which the taxpayer should bracket the material to be deleted.
The deletions statement must indicate the statutory basis under § 6110(c) for each pro-
posed deletion.
If the taxpayer decides to ask for additional deletions before the technical advice mem-
orandum is issued, additional deletions statements may be submitted.
The deletions statement must not appear in the request for technical advice but, instead,
must be made in a separate document.
The deletions statement must be signed and dated by the taxpayer or the taxpayer’s
The taxpayer should follow these same procedures to propose deletions from any addi-
tional information submitted after the initial request for technical advice. An additional
deletions statement, however, is not required with each submission of additional informa-
tion if the taxpayer’s initial deletions statement requests that only names, addresses, and
identifying numbers are to be deleted and the taxpayer wants only the same information
deleted from the additional information.
Transmittal Form 4463, .03 The field or area office should use Form 4463, Request for Technical Advice, for
Request for Technical Advice transmitting a request for technical advice to the national office using the addresses listed
below.
Address to send requests Internal Revenue Service

from field offices Attn: CC:PA:T
P.O. Box 7604
Address to send requests The area office may send the request to either:
from area offices
Office of LMSB Operations C:AP:LMSB
Office of the National Chief Appeals C:AP
1111 Constitution Ave., N.W.
Washington, D.C. 20224; or
Office of LMSB Operations C:AP:LMSB

Office of the National Chief Appeals C:AP
Franklin Court Building - East Court
1099 14th Street, N.W. - 4th Floor
Number of copies of request .04 The field or area office must submit two copies of the request for technical advice
to be submitted to the national office.
Also, the field or area office must send: (1) one copy of the request for technical advice
to the technical advisor if the request involves a designated issue or industry under the
Office of Pre-Filing and Technical Guidance, LMSB; and (2) one copy of the request for
technical advice to the division counsel of the operating division that has jurisdiction of
the taxpayer’s tax return.
Sec. 9.04
January 2, 2001 92 2001–1 I.R.B.
Power of attorney .05 Any authorized representative, as described in section 8.01(13) of Rev. Proc. 2001–1,
whether or not enrolled to practice, must comply with Treasury Department Circular No. 230
(31 C.F.R. part 10 (2000)) and with the conference and practice requirements of the
Statement of Procedural Rules (26 C.F.R. § 601.501–601.509 (2000)). It is preferred that
Form 2848, Power of Attorney and Declaration of Representative, be used with regard to
requests for technical advice under this revenue procedure. An original, a copy, or a fax
transmission of the power of attorney is acceptable so long as its authenticity is not reason-
ably disputed.
SECTION 10. HOW ARE

REQUESTS HANDLED?
Taxpayer notified .01 Regardless of whether the taxpayer or the Service initiates the request for technical
advice, the field or area office: (1) will notify the taxpayer that technical advice is being
requested; and (2) at or before the time the request is submitted to the national office, will
give to the taxpayer a copy of the arguments that are being provided to the national office
in support of the Service’s position.
If the examining officer or appeals officer initiates the request for technical advice, he
or she will give to the taxpayer a copy of the statement of the pertinent facts and the issues
proposed for submission to the national office.
This section 10.01 does not apply to a technical advice memorandum described in sec-
Conference offered .02 When notifying the taxpayer that technical advice is being requested, the examin-
ing officer or appeals officer will also tell the taxpayer about the right to a conference in
the national office if an adverse decision is indicated, and will ask the taxpayer whether
such a conference is desired.
If the taxpayer disagrees .03 If the examining officer or appeals officer initiates the request for technical advice,
with the Service’s the taxpayer has 10 calendar days after receiving the statement of facts and specific issues
statement of facts to submit to that officer a written statement specifying any disagreement on the facts and
issues. A taxpayer who needs more than 10 calendar days must justify in writing the
request for an extension of time. The extension is subject to the approval of the territory
manager or the area director, appeals.
After receiving the taxpayer’s statement of the areas of disagreement, every effort
should be made to reach an agreement on the facts and the specific points at issue before
the matter is referred to the national office. If an agreement cannot be reached, the field
or area office will notify the taxpayer in writing. Within 10 calendar days after receiving
the written notice, the taxpayer may submit a statement of the taxpayer’s understanding of
the facts and the specific points at issue. A taxpayer who needs more than 10 calendar days
to prepare the statement of understanding must justify in writing the request for an exten-
sion of time. The extension is subject to the approval of the territory manager or the area
director, appeals. Both the statements of the taxpayer and the field or area office will be
forwarded to the national office with the request for technical advice.
When the director or the area director, appeals, and the taxpayer cannot agree on the
material facts and the request for technical advice does not involve the issue of whether a
letter ruling should be modified or revoked, the national office, at its discretion, may refuse
to provide technical advice. If the national office chooses to issue technical advice, the
national office will base its advice on the facts provided by the field or area office.
If a request for technical advice involves the issue of whether a letter ruling should be
modified or revoked, the national office will issue technical advice.
Sec. 9.05
2001–1 I.R.B. 93 January 2, 2001
If the Service disagrees with .04 If the taxpayer initiates the request for technical advice and the taxpayer’s statement
the taxpayer’s statement of facts of the facts and issues is not wholly acceptable to the field or area office, the Service will
notify the taxpayer in writing of the areas of disagreement. The taxpayer has 10 calendar
days after receiving the written notice to reply to it. A taxpayer who needs more than 10
calendar days must justify in writing the request for an extension of time. The extension
is subject to the approval of the territory manager or the area director, appeals.
If an agreement cannot be reached, both the statements of the taxpayer and the field or
area office will be forwarded to the national office with the request for technical advice.
When the disagreement involves material facts essential to the preliminary assessment of
the case, the director or the area director, appeals, may refuse to refer a taxpayer initiated
request for technical advice to the national office.
If the director or the area director, appeals, submits a case involving a disagreement of
the material facts, the national office, at its discretion, may refuse to provide technical
advice. If the national office chooses to issue technical advice, the national office will base
its advice on the facts provided by the field or area office.
If the interpretation of a .05 If the interpretation of a foreign law or foreign document is a material fact, the
foreign law or foreign national office, at its discretion, may refuse to provide technical advice. This section 10.05
document is a material fact applies whether or not the field or area office and the taxpayer dispute the interpretation
of a foreign law or foreign document. The interpretation of a foreign law or foreign doc-
ument means making a judgment about the import or effect of the foreign law or document
that goes beyond its plain meaning.
If the taxpayer has not .06 When the field or area office initiates the request for technical advice, the taxpayer
submitted the required has 10 calendar days after receiving the statement of facts and issues to be submitted to
deletions statement the national office to provide the deletions statement required under § 6110(c). See sec-
tion 9.02 of this revenue procedure. If the taxpayer does not submit the deletions state-
ment, the director or the area director, appeals, will tell the taxpayer that the statement is
required.
When the taxpayer initiates the request for technical advice and does not submit a dele-
tions statement with the request, the director or the area director, appeals, will ask the tax-
payer to submit the statement. If the director or the area director, appeals, does not receive
the deletions statement within 10 calendar days after asking the taxpayer for it, the direc-
tor or the area director, appeals, may decline to submit the request for technical advice.
However, if the director or the area director, appeals, decides to request technical advice,
whether initiated by the field or area office or by the taxpayer, in a case in which the tax-
payer has not submitted the deletions statement, the national office will make those dele-
tions that the Commissioner of Internal Revenue determines are required by § 6110(c).
Section 6104 of the Internal .07 The requirements for submitting statements and other materials or proposed dele-
Revenue Code (Applications for tions in technical advice memorandums before public inspection is allowed do not apply
exemption and letter rulings to requests for any documents to the extent that § 6104 applies.
issued to certain exempt
organizations open to
public inspection)
Criminal or civil fraud cases .08 The provisions of this section (about referring issues upon the taxpayer’s request,
telling the taxpayer about the referral of issues, giving the taxpayer a copy of the argu-
ments submitted, submitting proposed deletions, and granting conferences in the national
office) do not apply to a technical advice memorandum described in § 6110(g)(5)(A) that
involves a matter that is the subject of or is otherwise closely related to a criminal or civil
fraud investigation, or a jeopardy or termination assessment.
Sec. 10.08
January 2, 2001 94 2001–1 I.R.B.
In these cases, a copy of the technical advice memorandum is given to the taxpayer after
all proceedings in the investigations or assessments are complete, but before the
Commissioner mails the notice of intention to disclose the technical advice memorandum
under § 6110(f)(1). The taxpayer may then provide the statement of proposed deletions to
the national office.
SECTION 11. HOW DOES A

TAXPAYER APPEAL A
DIRECTOR’S OR AREA
DIRECTOR, APPEALS’,
TECHNICAL ADVICE?
Taxpayer notified of decision .01 If the examining officer or appeals officer concludes that a taxpayer’s request for
not to seek technical advice referral of an issue to the national office for technical advice does not warrant referral, the
examining officer or appeals officer will tell the taxpayer. A taxpayer’s request for such a
referral will not be denied merely because the national office provided legal advice, other than
advice furnished pursuant to this revenue procedure, to the field or area office on the matter.
Taxpayer may appeal decision .02 The taxpayer may appeal the decision of the examining officer or appeals officer
not to seek technical advice not to request technical advice. To do so, the taxpayer must submit to that officer, within
10 calendar days after being told of the decision, a written statement of the facts, law, and
arguments on the issue and the reasons why the taxpayer believes the matter should be
referred to the national office for technical advice. A taxpayer who needs more than 10
calendar days must justify in writing the request for an extension of time. The extension
is subject to the approval of the territory manager or the area director, appeals.
Territory manager or area .03 The examining officer or appeals officer submits the taxpayer’s statement through
director, appeals, determines channels to the territory manager or the area director, appeals, along with the examining
whether technical advice officer’s or appeals officer’s statement of why the issue should not be referred to the
will be sought national office. The territory manager or the area director, appeals, determines on the basis
of the statements whether technical advice will be requested.
If the territory manager or the area director, appeals, determines that technical advice is
not warranted and proposes to deny the request, the taxpayer is told in writing about the
determination. In the letter to the taxpayer, the territory manager or the area director,
appeals, states the reasons for the proposed denial (except in unusual situations when
doing so would be prejudicial to the best interests of the Government). The taxpayer has
10 calendar days after receiving the letter to notify the territory manager or the area direc-
tor, appeals, of agreement or disagreement with the proposed denial.
Territory manager’s or area .04 The taxpayer may not appeal the decision of the territory manager or the area direc-
director, appeals’, decision tor, appeals, not to request technical advice from the national office. However, if the tax-
may be reviewed but not appealed payer does not agree with the proposed denial, all data on the issue for which technical
advice has been sought, including the taxpayer’s written request and statements, will be
submitted to the Industry Director, LMSB, the Director, Field Compliance, SB/SE, the
Director, Compliance, W&I, the Director, International, LMSB, the Director, Federal,
State & Local Governments, the Director, Tax Exempt Bonds, the Director, Indian Tribal
Governments, or the Chief, Appeals, as appropriate.
The Industry Director, LMSB, the Director, Field Compliance, SB/SE, the Director,
Compliance, W&I, the Director, International, LMSB, the Director, Federal, State & Local
Governments, the Director, Tax Exempt Bonds, the Director, Indian Tribal Governments,
or the Chief, Appeals, as appropriate, will review the proposed denial solely on the basis
of the written record, and no conference will be held with the taxpayer or the taxpayer’s
representative. The Industry Director, LMSB, the Director, Field Compliance, SB/SE, the
Sec. 10.08
2001–1 I.R.B. 95 January 2, 2001
Director, Compliance, W&I, the Director, International, LMSB, the Director, Federal,
State & Local Governments, the Director, Tax Exempt Bonds, the Director, Indian Tribal
Governments, or the Chief, Appeals may consult with the national office, if necessary, and
will notify the field office or area office within 45 calendar days of receiving all the data
regarding the request for technical advice whether the proposed denial is approved or dis-
approved. The field office or area office will then notify the taxpayer.
While the matter is being reviewed, the field office or area office suspends action on the
issue (except when the delay would prejudice the Government’s interest).
The provisions of this revenue procedure in regard to review of the proposed denial of
a request for technical advice continue to be applicable in those situations in which the
authority normally exercised by the director or the area director, appeals, has been dele-
gated to another official.
SECTION 12. HOW ARE

ADVICE WITHDRAWN?
Taxpayer notified .01 Once a request for technical advice has been sent to the national office, only a direc-
tor or an area director, appeals, may withdraw a request for technical advice. He or she
may ask to withdraw a request at any time before the responding transmittal memorandum
for the technical advice is signed.
The director or the area director, appeals, as appropriate, must notify the taxpayer in
writing of an intent to withdraw the request for technical advice except—
(1) when the period of limitations on assessment is about to expire and the taxpayer has
declined to sign a consent to extend the period; or
(2) when such notification would be prejudicial to the best interests of the Government.
If the taxpayer does not agree that the request for technical advice should be withdrawn,
the procedures in section 11 of this revenue procedure must be followed.
National office may provide views .02 When a request for technical advice is withdrawn, the national office may send its
views to the director or the area director, appeals, when acknowledging the withdrawal
request. This memorandum may constitute Chief Counsel Advice, as defined in § 6110(i),
subject to disclosure under § 6110. In an appeals case, acknowledgment of the withdraw-
al request should be sent to the appropriate area office, through the Chief, Appeals,
C:AP:LMSB. In appropriate cases, the subject matter may be published as a revenue rul-
ing or as a revenue procedure.
SECTION 13. HOW ARE

If requested, offered to the .01 If, after the technical advice request is analyzed, it appears that technical advice
taxpayer when adverse adverse to the taxpayer will be given, and if a conference has been requested, the taxpay-
technical advice proposed er will be informed, by telephone if possible, of the time and place of the conference.
Normally held within 21 days .02 The conference must be held within 21 calendar days after the taxpayer is contact-
of contact with the taxpayer ed. If conferences are being arranged for more than one request for technical advice for
the same taxpayer, they will be scheduled to cause the least inconvenience to the taxpay-
er. The national office will notify the examining officer or appeals officer of the sched-
uled conference and will offer the examining officer or appeals officer the opportunity to
attend the conference. The Industry Director, LMSB, the Director, Field Compliance,
SB/SE, the Director, Compliance, W&I, the Director, International, LMSB, the Director,
Federal, State & Local Governments, the Director, Tax Exempt Bonds, the Director, Indian
Sec. 13.02
January 2, 2001 96 2001–1 I.R.B.
Tribal Governments, the Chief, Appeals, the director, or the area director, appeals, may
designate other Service representatives to attend the conference in lieu of, or in addition
to, the examining officer or appeals officer.
21-day period will be extended .03 An extension of the 21-day period will be granted only if the taxpayer justifies it in
if justified and approved writing and the associate or assistant chief counsel, as appropriate, of the office to which
the case is assigned approves the request. No extension will be granted without the
approval of the associate or assistant chief counsel, as appropriate. Except in rare and
unusual circumstances, the national office will not agree to an extension of more than 10
working days beyond the end of the 21-day period.
The taxpayer’s request for extension must be submitted before the end of the 21-day
period, and should be submitted sufficiently before the end of this period to allow the
national office to consider, and either approve or deny, the request before the end of the
21-day period. If unusual circumstances near the end of the 21-day period make a timely
written request impractical, the national office should be told orally before the end of the
period about the problem. The written request for extension must be submitted to the
national office promptly after the oral request. The taxpayer will be told promptly (and
later in writing) of the approval or denial of a requested extension.
Denial of extension cannot .04 There is no right to appeal the denial of a request for extension. If the national office
be appealed is not advised of problems with meeting the 21-day period or if the written request is not
sent promptly after the national office is notified of problems with meeting the 21-day
period, the case will be processed on the basis of the existing record.
Entitled to one conference of right .05 A taxpayer is entitled by right to only one conference in the national office unless
one of the circumstances discussed in section 13.09 of this revenue procedure exists. This
conference is normally held at the branch level and is attended by a person who has
authority to sign the transmittal memorandum (discussed in section 15.14 of this revenue
procedure) in his or her own name or on behalf of the branch chief.
When more than one branch has taken an adverse position on an issue in the request or
when the position ultimately adopted by one branch will affect another branch’s determi-
nation, a representative from each branch with authority to sign in his or her own name or
for the branch chief will attend the conference. If more than one subject is discussed at
the conference, the discussion constitutes a conference for each subject.
To have a thorough and informed discussion of the issues, the conference usually is held
after the branch has had an opportunity to study the case. However, the taxpayer may
request that the conference of right be held earlier in the consideration of the case than the
Service would ordinarily designate.
The taxpayer has no right to appeal the action of a branch to an associate or assistant
chief counsel, as appropriate, or to any other Service official. But see section 13.09 of this
revenue procedure for situations in which the Service may offer additional conferences.
Conference may not be taped .06 Because conference procedures are informal, no tape, stenographic, or other verba-
tim recording of a conference may be made by any party.
If requested and approved, .07 In the event of a tentatively adverse determination, the taxpayer may request, in
conference will be delayed to writing, a delay of the conference so that the taxpayer can prepare and submit a brief
address a request for relief requesting relief under § 7805(b) (discussed in section 18 of this revenue procedure). The
under § 7805(b) associate or assistant chief counsel, as appropriate, of the office to which the case is
assigned will determine whether to grant or deny the request for delaying the conference.
If such request is granted, the Service will schedule a conference on the tentatively adverse
decision and the § 7805(b) relief request within 10 days of receiving the taxpayer’s
§ 7805(b) request. There is no right to appeal the denial of a request for delaying the con-
Sec. 13.02
2001–1 I.R.B. 97 January 2, 2001
ference. See section 18.04 of this revenue procedure for the conference procedures if the
§ 7805(b) request is made after the conference on the substantive issues has been held.
Service makes tentative .08 The senior Service representative at the conference ensures that the taxpayer has full
recommendations opportunity to present views on all the issues in question. The Service representatives
explain the tentative decision on the substantive issues and the reasons for it.
If the taxpayer requests relief under § 7805(b) (regarding limitation of retroactive

effect), the Service representatives will discuss the tentative recommendation concerning
the request for relief and the reason for the tentative recommendation.
No commitment will be made as to the conclusion that the Service will finally adopt
regarding the outcome of the § 7805(b) issue or on any other issue discussed.
Additional conferences .09 The Service will offer the taxpayer an additional conference if, after the conference
may be offered of right, an adverse holding is proposed on a new issue or on the same issue but on grounds
different from those discussed at the first conference.
When a proposed holding is reversed at a higher level with a result less favorable to the
taxpayer, the taxpayer has no right to another conference if the grounds or arguments on
which the reversal is based were discussed at the conference of right.
The limitation on the number of conferences to which a taxpayer is entitled does not pre-
vent the national office from inviting a taxpayer to attend additional conferences, includ-
ing conferences with an official higher than the branch level, if national office personnel
think they are necessary. Such conferences are not offered as a matter of course simply
because the branch has reached an adverse decision. In general, conferences with higher
level officials are offered only if the Service determines that the case presents significant
issues of tax policy or tax administration and that the consideration of these issues would
be enhanced by additional conferences with the taxpayer.
In accordance with section 13.02 of this revenue procedure, the examining officer or
appeals officer will be offered the opportunity to participate in any additional taxpayer’s
conference, including a conference with an official higher than the branch level. Section
13.02 of this revenue procedure also provides that other Service representatives are
allowed to participate in the conference.
Additional information submitted .10 Within 21 calendar days after the conference, the taxpayer must furnish to the
after the conference national office any additional data, lines of reasoning, precedents, etc., that the taxpayer
proposed and discussed at the conference but did not previously or adequately present in
writing. This additional information must be submitted by letter with a penalties of per-
jury statement in the form described in section 15.11(2) of this revenue procedure.
The taxpayer must also send a copy of the additional information to the director or the
area director, appeals, for comment. Any comments by the director or the area director,
appeals, must be furnished promptly to the appropriate branch in the national office. If the
director or the area director, appeals, does not have any comments, he or she must notify
the branch representative promptly.
If the additional information would have a significant impact on the facts in the request
for technical advice, the national office will ask the director or the area director, appeals,
for comment on the facts contained in the additional information submitted. The director
or the area director, appeals, will give the additional information prompt attention.
If the additional information is not received within 21 calendar days, the technical
advice memorandum will be issued on the basis of the existing record.
Sec. 13.10
January 2, 2001 98 2001–1 I.R.B.
An extension of the 21-day period may be granted only if the taxpayer justifies it in writ-
ing and the associate or assistant chief counsel, as appropriate, of the office to which the
case is assigned approves the extension. Such extension will not be routinely granted. The
procedures for requesting an extension of the 21-day period and notifying the taxpayer of
the Service’s decision are the same as those in sections 13.03 and 13.04 of this revenue
procedure.
may schedule a conference This request may occur, for example, when a taxpayer wants a conference of right but
to be held by telephone believes that the issue involved does not warrant incurring the expense of traveling to
Washington, D.C.. If a taxpayer makes such a request, the branch chief, senior technician
reviewer (or senior technical reviewer), or assistant to the branch chief (or assistant branch
chief) of the branch to which the case is assigned will decide if it is appropriate in the par-
ticular case to hold the conference of right by telephone. If the request is approved, the
taxpayer will be advised when to call the Service representatives (not a toll-free call).
In accordance with section 13.02 of this revenue procedure, the examining officer or
appeals officer will be offered the opportunity to participate in the telephone conference.
Section 13.02 of this revenue procedure also provides that other Service representatives
are allowed to participate in the conference.
SECTION 14. HOW IS STATUS

Taxpayer or the taxpayer’s .01 The taxpayer or the taxpayer’s representative may obtain information on the status
representative may request status of the request for technical advice by contacting the field or area office that requested the
from the field or area office technical advice. See section 15.09 of this revenue procedure concerning the time for dis-
cussing the tentative conclusion with the taxpayer or the taxpayer’s representative. See
section 16.02 of this revenue procedure regarding discussions of the contents of the tech-
nical advice memorandum with the taxpayer or the taxpayer’s representative.
National office will give status .02 The branch representative or branch chief assigned to the technical advice request
updates to the director or will give status updates on the request once a month to the director or the area director,
area director, appeals appeals. In addition, a director or an area director, appeals, may get current information on
the status of the request for technical advice by calling the person whose name and telephone
number are shown on the acknowledgment of receipt of the request for technical advice.
See section 15.10 of this revenue procedure about discussing the final conclusions with
the field or area office. Further, the director or the area director, appeals, will be notified
at the time the technical advice memorandum is mailed.
SECTION 15. HOW DOES THE

NATIONAL OFFICE PREPARE
THE TECHNICAL ADVICE
MEMORANDUM?
Delegates authority to .01 The branch chiefs in the Office of Associate Chief Counsel (Corporate), the Office
branch chiefs of Associate Chief Counsel (Financial Institutions & Products), the Office of Associate Chief
Counsel (Income Tax & Accounting), the Office of Associate Chief Counsel (International),
the Office of Associate Chief Counsel (Passthroughs & Special Industries), the Office of
Associate Chief Counsel (Procedure and Administration), and the Office of Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) have largely been
delegated the authority to issue technical advice on issues under their jurisdiction.
Determines whether request .02 A request for technical advice generally is given priority and processed expedi-
has been properly made tiously. As soon as the request for technical advice is assigned, the branch representative
analyzes the file to see whether it meets all requirements of sections 6, 7, and 9 of this rev-
enue procedure.
Sec. 13.10
2001–1 I.R.B. 99 January 2, 2001
However, if the request does not comply with the requirements of section 9.02 of this
revenue procedure relating to the deletions statement, the Service will follow the proce-
dure in the last paragraph of section 10.06 of this revenue procedure.
Contacts the field or area .03 Usually, within 21 calendar days after the branch receives the request for technical
office to discuss issues advice, a representative of the branch telephones the field or area office to discuss the pro-
cedural and substantive issues in the request that come within the branch’s jurisdiction.
Informs the field or area office .04 If the technical advice request concerns matters within the jurisdiction of more than
if any matters in the request one branch or office, a representative of the branch that received the original technical
have been referred to another advice request informs the field or area office within 21 calendar days of receiving the
branch or office request that—
(1) the matters within the jurisdiction of another branch or office have been referred to
the other branch or office for consideration; and
(2) a representative of the other branch or office will contact the field or area office
about the technical advice request within 21 calendar days after receiving it in accordance
with section 15.03 of this revenue procedure.
Informs the field or area .05 The branch representative will inform the field or area office that the case is being
office if additional information returned if substantial additional information is required to resolve an issue. Cases should
is needed be returned for additional information when significant unresolved factual variances exist
between the statement of facts submitted by the field or area office and the taxpayer. Cases
should also be returned if major procedural problems cannot be resolved by telephone.
The field or area office should promptly notify the taxpayer of the decision to return the
case for further factual development or other reasons.
If only minor procedural deficiencies exist, the branch representative will request the
additional information in the most expeditious manner without returning the case. Within
21 calendar days after receiving the information requested, the branch representative will
notify the field or area office of the tentative conclusion and an estimated date by which
the technical advice memorandum will be mailed, or an estimated date when a tentative
conclusion will be made.
Informs the field or area .06 If all necessary information has been provided, the branch representative informs
office of the tentative conclusion the field or area office of the tentative conclusion and the estimated date that the technical
advice memorandum will be mailed.
If a tentative conclusion has not .07 If a tentative conclusion has not been reached because of the complexity of the
been reached, gives date issue, the branch representative informs the field or area office of the estimated date the
estimated for tentative conclusion tentative conclusion will be made.
Advises the field or area office .08 Because the branch representative’s tentative conclusion may change during the
if tentative conclusion is changed preparation and review of the technical advice memorandum, the tentative conclusion
should not be considered final. If the tentative conclusion is changed, the branch repre-
sentative will inform the field or area office.
Generally does not discuss the .09 Neither the national office nor the field or area office should advise the taxpayer or
tentative conclusion with the taxpayer’s representative of the tentative conclusion during consideration of the
the taxpayer request for technical advice. However, in order to afford taxpayers an appropriate opportu-
nity to prepare and present their position, the taxpayer or the taxpayer’s representative should
be told the tentative conclusion when scheduling the adverse conference, at the adverse con-
ference, or in any discussion between the scheduling and commencement of the adverse con-
ference. See section 16.02 of this revenue procedure regarding discussions of the contents
of the technical advice memorandum with the taxpayer or the taxpayer’s representative.
Sec. 15.10
January 2, 2001 100 2001–1 I.R.B.
Advises the field or area .10 In all cases, the branch representative will inform the examining officer or appeals
office of final conclusions officer of the national office’s final conclusions. The examining officer or appeals officer
will be offered the opportunity to discuss the issues and the national office’s final conclu-
sions before the technical advice memorandum is issued.
If needed, requests additional .11 If, following the initial contact referenced in section 15.03 of this revenue proce-
information dure, it is determined, after discussion with the branch chief or reviewer, that additional
information is needed, a branch representative will obtain the additional information from
the taxpayer or from the director or the area director, appeals, in the most expeditious man-
ner possible. Any additional information requested from the taxpayer by the national
office must be submitted by letter with a penalties of perjury statement within 21 calendar
days after the request for information is made.
(1) Request to receive a request for additional information by fax. To facilitate

prompt action on technical advice requests, the taxpayer is encouraged to request that if
the Service requests additional information from the taxpayer, the Service does so by fax.
A request to fax a copy of the request for additional information to the taxpayer or the
taxpayer’s authorized representative must be made in writing, either as part of the original
technical advice request or prior to the mailing of the request for additional information.
The request to fax must contain the fax number of the taxpayer or the taxpayer’s autho-
rized representative to whom the document is to be faxed.
Because of the unsecured nature of a fax transmission, the Service will take certain pre-
cautions to protect confidential information. For example, the Service will use a cover
sheet that identifies the intended recipient of the fax and the number of pages transmitted,
that does not identify the taxpayer by name or identifying number, and that contains a
statement prohibiting unauthorized disclosure of the document if a recipient of the faxed
document is not the intended recipient of the fax. Also, for example, the cover sheet
should be faxed in an order in which it will become the first page covering the faxed doc-
ument.
(2) Penalties of perjury statement. Additional information submitted to the national

office must be accompanied by the following declaration: “Under penalties of perjury,
I declare that I have examined this information, including accompanying documents,
and, to the best of my knowledge and belief, the information contains all the relevant
facts relating to the request for the information, and such facts are true, correct, and
complete.” This declaration must be signed and dated by the taxpayer, not the taxpayer’s
representative. A stamped signature is not permitted.
(3) 21-day period will be extended if justified and approved. A written request for
an extension of time to submit additional information must be received by the national
office within the 21-day period, giving compelling facts and circumstances to justify the
proposed extension. The associate or assistant chief counsel, as appropriate, of the office
to which the case is assigned will determine whether to grant or deny the request for an
extension of the 21-day period. No extension will be granted without the approval of the
associate or assistant chief counsel, as appropriate. Except in rare and unusual circum-
stances, the national office will not agree to an extension of more than 10 working days
beyond the end of the 21-day period. There is no right to appeal the denial of a request for
extension.
(4) If the taxpayer does not submit additional information. If the national office
does not receive the additional information within the 21-day period, plus any extensions
granted by the associate or assistant chief counsel, as appropriate, the national office will
issue the technical advice memorandum based on the existing record.
Sc. 15.11
2001–1 I.R.B. 101 January 2, 2001
Requests taxpayer to send .12 Whether or not requested by the Service, any additional information submitted by
additional information to the taxpayer should be sent to the national office. Generally, the taxpayer needs only to
the national office and a submit the original of the additional information to the national office. However, in appro-
copy to the director or priate cases, the national office may request additional copies of the information.
area director, appeals
Also, the taxpayer must send a copy of the additional information to the director or the
area director, appeals, for comment. Any comments by the director or the area director,
appeals, must be furnished promptly to the appropriate branch in the national office. If the
director or the area director, appeals, does not have any comments, he or she must notify
the branch representative promptly.
Informs the taxpayer when .13 Generally, before replying to the request for technical advice, the national office
requested deletions will informs the taxpayer orally or in writing of the material likely to appear in the technical
not be made advice memorandum that the taxpayer proposed be deleted but that the Service has deter-
mined should not be deleted.
If so informed, the taxpayer may submit within 10 calendar days any further informa-
tion or arguments supporting the taxpayer’s proposed deletions.
The Service attempts, if possible, to resolve all disagreements about proposed deletions
before the national office replies to the request for technical advice. However, the tax-
payer does not have the right to a conference to resolve any disagreements about material
to be deleted from the text of the technical advice memorandum. These matters, howev-
er, may be considered at any conference otherwise scheduled for the request. See section
16.04 of this revenue procedure for the procedures to protest the disclosure of information
in the technical advice memorandum.
Prepares reply in two parts .14 The replies to technical advice requests are in two parts. Each part identifies the
taxpayer by name, address, identification number, and year or years involved.
The first part of the reply is a transmittal memorandum (Form M-6000). In unusual
cases, it is a way of giving the field or area office strategic advice that need not be dis-
cussed with the taxpayer. If the transmittal memorandum provides more than the fact that
the technical advice memorandum is attached or the case is returned for further develop-
ment, the transmittal memorandum may constitute Chief Counsel Advice, as defined in
§ 6110(i)(1), subject to disclosure under § 6110.
The second part is the technical advice memorandum, which contains—
(1) a statement of the issues;
(2) the conclusions of the national office;
(3) a statement of the facts pertinent to the issues;
(4) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other
precedents published in the Internal Revenue Bulletin, and court decisions; and
(5) a discussion of the rationale supporting the conclusions reached by the national
office.
The conclusions give direct answers, whenever possible, to the specific issues raised by
the field or area office. However, the national office is not bound by the precise statement
of the issues as submitted by the taxpayer or by the field or area office and may reframe
the issues to be answered in the technical advice memorandum. The discussion of the
issues will be in sufficient detail so that the field or appeals officials will understand the
reasoning underlying the conclusion.
Sec. 15.14
January 2, 2001 102 2001–1 I.R.B.
Accompanying the technical advice memorandum is a notice under § 6110(f)(1) of
intention to disclose a technical advice memorandum (including a copy of the version pro-
posed to be open to public inspection and notations of third party communications under
§ 6110(d)).
Routes replies to appropriate office .15 Replies to requests for technical advice are addressed to the director or the area
director, appeals. Replies to requests from appeals should be routed to the appropriate area
office through the Chief, Appeals, C:AP:LMSB.
Sends a copy of reply to .16 The national office will send a copy of the reply to the request for technical advice
appropriate division counsel to the division counsel of the operating division that has jurisdiction of the taxpayer’s tax
return.

FIELD OR AREA OFFICE
USE THE TECHNICAL ADVICE?
Generally applies advice in .01 The director or the area director, appeals, must process the taxpayer’s case on the
processing the taxpayer’s case basis of the conclusions in the technical advice memorandum unless–
(1) the director or the area director, appeals, decides that the conclusions reached by the
national office in a technical advice memorandum should be reconsidered;
(2) in the case of technical advice unfavorable to the taxpayer, the area director, appeals,
decides to settle the issue under existing authority; or
(3) in the case of technical advice unfavorable to a Coordinated Examination Program

taxpayer on a coordinated issue within the Office of Pre-Filing and Technical Guidance,
LMSB, on which appeals has coordinated issue papers containing settlement guidelines or
positions, the team manager decides to settle the issue under the settlement authority del-
egated in Delegation Order No. 247, 1996–1 C.B. 356.
Except as provided in paragraph (1), (2), or (3) of this section 16.01, the conclusions in a
technical advice memorandum involving a § 103 obligation and the issuer of this obligation
must be treated by the director or the area director, appeals, as applying to the issuer and any
holder of the obligation, unless the holder initiates a request for technical advice on the same
issue addressed in the technical advice memorandum involving the issuer, and the national
office issues a technical advice memorandum involving that issue and that holder.
Discussion with the taxpayer .02 The national office will not discuss the contents of the technical advice memoran-
dum with the taxpayer or the taxpayer’s representative until the taxpayer has been given a
copy of the technical advice memorandum by the field or area office. See section 15.09
of this revenue procedure concerning the time for discussing the tentative conclusion with
the taxpayer or the taxpayer’s representative.
Gives copy to the taxpayer .03 The director or the area director, appeals, only after adopting the technical advice,
gives the taxpayer—
(1) a copy of the technical advice memorandum described in section 15.14 of this rev-
enue procedure; and
(2) the notice under § 6110(f)(1) of intention to disclose the technical advice memo-
randum (including a copy of the version proposed to be open to public inspection and nota-
tions of third party communications under § 6110(d)).
This requirement does not apply to a technical advice memorandum involving a crimi-
nal or civil fraud investigation, or a jeopardy or termination assessment, as described in
section 10.08 of this revenue procedure.
Sec. 15.15
2001–1 I.R.B. 103 January 2, 2001
Taxpayer may protest .04 After receiving the notice under § 6110(f)(1) of intention to disclose the technical
deletions not made advice memorandum, the taxpayer may protest the disclosure of certain information in it.
The taxpayer must submit a written statement within 20 calendar days identifying those
deletions not made by the Service that the taxpayer believes should have been made. The
taxpayer must also submit a copy of the version of the technical advice memorandum pro-
posed to be open to public inspection with brackets around the deletions proposed by the
taxpayer that have not been made by the national office.
Generally, the national office considers only the deletion of material that the taxpayer has
proposed be deleted or other deletions as required under § 6110(c) before the national office
reply is sent to the director or the area director, appeals. Within 20 calendar days after it
receives the taxpayer’s response to the notice under § 6110(f)(1), the national office must
mail to the taxpayer its final administrative conclusion about the deletions to be made.
When no copy is given to .05 If the national office tells the director or the area director, appeals, that a copy of the
the taxpayer technical advice memorandum should not be given to the taxpayer and the taxpayer
requests a copy, the director or the area director, appeals, will tell the taxpayer that no copy
will be given.

EFFECT OF TECHNICAL ADVICE?
Applies only to the taxpayer .01 A taxpayer may not rely on a technical advice memorandum issued by the Service
for whom technical advice for another taxpayer. See § 6110(k)(3).
was requested
Usually applies retroactively .02 Except in rare or unusual circumstances, a holding in a technical advice memoran-
dum that is favorable to the taxpayer is applied retroactively.
Moreover, because technical advice, as described in section 2 of this revenue procedure,

is issued only on closed transactions, a holding that is adverse to the taxpayer is also
applied retroactively, unless the Associate Chief Counsel (Corporate), the Associate Chief
Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax &
Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel
(Passthroughs & Special Industries), the Associate Chief Counsel (Procedure and
Administration), or the Division Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities), as appropriate, exercises the discretionary authority under §
7805(b) to limit the retroactive effect of the holding.
Generally applied retroactively .03 A holding that modifies or revokes a holding in a prior technical advice memoran-
to modify or revoke prior dum is applied retroactively, with one exception. If the new holding is less favorable to
technical advice the taxpayer than the earlier one, it generally is not applied to the period when the taxpayer
relied on the prior holding in situations involving continuing transactions.
Applies to continuing action or .04 If a technical advice memorandum relates to a continuing action or a series of
series of actions until specifically actions, ordinarily it is applied until specifically withdrawn or until the conclusion is mod-
withdrawn, modified, or revoked ified or revoked by the enactment of legislation, the ratification of a tax treaty, a decision of the
United States Supreme Court, or the issuance of regulations (temporary or final), a revenue rul-
ing, or other statement published in the Internal Revenue Bulletin. Publication of a notice of
proposed rulemaking does not affect the application of a technical advice memorandum.
Applies to continuing action or .05 A taxpayer is not protected against retroactive modification or revocation of a tech-
series of actions until material nical advice memorandum involving a continuing action or a series of actions occurring
facts change after the material facts on which the technical advice memorandum is based have changed.
Does not apply retroactively .06 Generally, a technical advice memorandum that modifies or revokes a letter ruling
under certain conditions or another technical advice memorandum is not applied retroactively either to the taxpay-
er to whom or for whom the letter ruling or technical advice memorandum was originally
Sec. 17.06
January 2, 2001 104 2001–1 I.R.B.
issued, or to a taxpayer whose tax liability was directly involved in such letter ruling or
technical advice memorandum if—
which the letter ruling or technical advice memorandum was based;
(4) in the case of a letter ruling, it was originally issued on a prospective or proposed
transaction; and
(5) the taxpayer directly involved in the letter ruling or technical advice memorandum
acted in good faith in relying on the letter ruling or technical advice memorandum, and the
retroactive modification or revocation would be to the taxpayer’s detriment. For example,
the tax liability of each shareholder is directly involved in a letter ruling or technical advice
memorandum on the reorganization of a corporation. However, the tax liability of a mem-
ber of an industry is not directly involved in a letter ruling or technical advice memorandum
issued to another member and, therefore, the holding in a modification or revocation of a let-
ter ruling or technical advice memorandum to one member of an industry may be retroac-
tively applied to other members of the industry. By the same reasoning, a tax practitioner
may not obtain the nonretroactive application to one client of a modification or revocation
of a letter ruling or technical advice memorandum previously issued to another client.
When a letter ruling to a taxpayer or a technical advice memorandum involving a tax-

payer is modified or revoked with retroactive effect, the notice to the taxpayer, except in
fraud cases, sets forth the grounds on which the modification or revocation is being made
and the reason why the modification or revocation is being applied retroactively.
SECTION 18. HOW MAY

RETROACTIVE EFFECT
BE LIMITED?
Taxpayer may request that .01 Under § 7805(b), the Associate Chief Counsel (Corporate), the Associate Chief
retroactivity be limited Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax &
Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel
(Passthroughs & Special Industries), the Associate Chief Counsel (Procedure and
Administration), or the Division Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities), as the Commissioner’s delegate, may prescribe the extent, if any, to
which a technical advice memorandum will be applied without retroactive effect.
A taxpayer for whom a technical advice memorandum was issued or for whom a tech-
nical advice request is pending may request that the Associate Chief Counsel (Corporate),
the Associate Chief Counsel (Financial Institutions & Products), the Associate Chief
Counsel (Income Tax & Accounting), the Associate Chief Counsel (International), the
Associate Chief Counsel (Passthroughs & Special Industries), the Associate Chief Counsel
(Procedure and Administration), or the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities), as appropriate, limit the retroactive effect of any hold-
ing in the technical advice memorandum or of any subsequent modification or revocation
of the technical advice memorandum.
When germane to a pending technical advice request, a taxpayer should request to limit
the retroactive effect of the holding of the technical advice memorandum early during the
consideration of the technical advice request by the national office. This § 7805(b) request
should be made initially as part of that pending technical advice request. The national
office, however, will consider a § 7805(b) request to limit the retroactive effect of the hold-
ing if the request is made at a later time.
Sec. 17.06
2001–1 I.R.B. 105 January 2, 2001
Form of request to limit .02 When a technical advice memorandum that concerns a continuing transaction is
retroactivity — continuing modified or revoked by, for example, issuance of a subsequent revenue ruling or tempo-
transaction before examination rary or final regulations, a request to limit the retroactive effect of the modification or of
return revocation of the technical advice memorandum must be made in the form of a request for
a letter ruling if the request is submitted before an examination of the return pertaining to
the transaction that is the subject of the request for the letter ruling. The requirements for
a letter ruling request are given in sections 8 and 12.11 of Rev. Proc. 2001–1.
Form of request to limit .03 In all other cases during the course of an examination of a taxpayer’s return by the
retroactivity — in all other cases director or during consideration of the taxpayer’s return by the area director, appeals
(including when the taxpayer is informed that the director or the area director, appeals, will
recommend that a technical advice memorandum, letter ruling, or determination letter pre-
viously issued to, or with regard to, the taxpayer be modified or revoked), a taxpayer’s
request to limit retroactivity must be made in the form of a request for technical advice.
The request must meet the general requirements of a technical advice request, which are
given in sections 6, 7, and 9 of this revenue procedure. The request must also—
(1) state that it is being made under § 7805(b);
(2) state the relief sought;
(3) explain the reasons and arguments in support of the relief sought (including a dis-
(4) include any documents bearing on the request.
The taxpayer’s request, including the statement that the request is being made under
§ 7805(b), must be submitted to the director or the area director, appeals, who must then
forward the request to the national office for consideration.
Taxpayer’s right to a conference .04 When a request for technical advice concerns only the application of § 7805(b), the
taxpayer has the right to a conference in the national office in accordance with the provi-
sions of section 13 of this revenue procedure. In accordance with section 13.02 of this rev-
enue procedure, the examining officer or appeals officer will be offered the opportunity to
attend the conference on the § 7805(b) issue. Section 13.02 of this revenue procedure also
provides that other Service representatives are allowed to participate in the conference.
If the request for application of § 7805(b) is included in the request for technical advice
on the substantive issues or is made before the conference of right on the substantive
issues, the § 7805(b) issues will be discussed at the taxpayer’s one conference of right.
If the request for the application of § 7805(b) is made as part of a pending technical
advice request after a conference has been held on the substantive issues and the Service
determines that there is justification for having delayed the request, then the taxpayer will
have the right to one conference of right concerning the application of § 7805(b), with the
conference limited to discussion of this issue only.
SECTION 19. WHAT .01 The offices and titles in this revenue procedure are based on the current organiza-
SIGNIFICANT CHANGES tion of the Service. The operating divisions of the Service are described in section 1.
HAVE BEEN MADE TO
REV. PROC. 2000–2? .02 Section 5.01(3)(b)(i) of Rev. Proc. 2000–2 has been deleted because of security con-
cerns regarding, and the lack of use of, the drop box at the IRS main building.
Accordingly, § 301.9100 requests may no longer be delivered to the drop box.
.03 Section 5.02 of Rev. Proc. 2000–2 has been deleted because the two-year effective
period of Rev. Proc. 98–17 has expired. Accordingly, section 5.01(1) through 5.01(4) of
Sec. 19
January 2, 2001 106 2001–1 I.R.B.
Rev. Proc. 2000–2 have been redesignated as sections 5.01 through 5.04 in this revenue
procedure.
.04 Section 9.01(6) is added to require the submission of a written statement regarding
the interpretation of a substantive provision of an income or estate tax treaty whether the
request for technical advice is initiated by the taxpayer or by a field or area office.
.05 Section 9.03 is amended to provide the new address for area offices to send a request
for technical advice.
.06 Section 9.04 is amended to provide that the field or area office will send a copy of
the request for technical advice to the division counsel of the operating division that has
jurisdiction of the taxpayer’s tax return.
.07 Section 12.02 is amended to clarify that when the national office sends its views to
the director or the area director, appeals, when acknowledging the withdrawal of a request
for technical advice, this memorandum may constitute Chief Counsel Advice, subject to
disclosure.
.08 Section 15.16 is added to provide that the national office will send a copy of the
reply to the request for technical advice to the division counsel of the operating division
that has jurisdiction of the taxpayer’s tax return.
SECTION 20. WHAT IS THE Rev. Proc. 2000–2, 2000–1 I.R.B. 73, is superseded.
PROCEDURE ON OTHER
DOCUMENTS?
SECTION 21. WHAT IS THE This revenue procedure is effective January 15, 2001, with the following exceptions:
REVENUE PROCEDURE? (1) New sections 9.01(6) and 15.16 of this revenue procedure are effective only for
requests postmarked or, if not mailed, received on or after January 15, 2001.
(2) The change to section 9.04 of this revenue procedure regarding the division counsel
is effective only for requests postmarked or, if not mailed, received on or after January 15,
2001.
DRAFTING INFORMATION The principal author of this revenue procedure is Sara Logan of the Office of Associate
Chief Counsel (Passthroughs & Special Industries). For further information regarding this
revenue procedure for matters under the jurisdiction of—
(1) the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial
Institutions & Products), the Associate Chief Counsel (Income Tax & Accounting), the
Associate Chief Counsel (Passthroughs & Special Industries), or the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), contact
Kathleen Reed or Ms. Logan at (202) 622-3110 (not a toll-free call);
(2) the Associate Chief Counsel (International), contact Gerard Traficanti at (202) 622-
3619 (not a toll-free call);
(3) the Associate Chief Counsel (Procedure and Administration), contact George
Bowden or Henry Schneiderman at (202) 622-3400 (not a toll-free call);
(4) the Commissioner (Large and Mid-Size Business Division), contact Nicholas
Donadio at (202) 283-8408 (not a toll-free call);
(5) the Commissioner (Small Business and Self-Employed Division), contact John
Brueggeman at (336) 378-2821 (not a toll-free call);
Sec. 19
2001–1 I.R.B. 107 January 2, 2001
(6) the Commissioner (Wage and Investment Division), contact Hugh Barrett at (404)
338-9903; or
(7) the Chief, Appeals, contact Thomas R. Roley at (202) 694-1822 (not a toll-free call).
January 2, 2001 108 2001–1 I.R.B.

INDEX
- procedure for submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.05, 15.11, 15.12
after conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13.10
- proposed deletions under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.02
- to receive request for additional information by fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.01, 15.11(1)
Conferences
- offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.02, 13.01
after conference of right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.09
exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.08, 11.04, 15.13
- pre-submission conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
- scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.07, 18.04
telephone conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.11
Definitions
- area office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
- area director, appeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
- director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
- field office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
- national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
- taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
- technical advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
- territory manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Discussions with Taxpayers

- technical advice memorandum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.02
- technical advice request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.09
Employee Plans and Exempt Organizations

- application of § 6104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.07
- jurisdiction of Commissioner, Tax Exempt and Government Entities Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.02
Extension of Time
- to appeal decision not to request technical advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.02
- to disagree with statement of facts in technical advice request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.03, 10.04
- to schedule conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.03, 13.04
- to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.10, 15.11
- to submit taxpayer’s initial statement of facts and arguments after technical
advice request forwarded to national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.01(2)
Foreign laws and documents

- required with technical advice request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9.01(4), 9.01(5)
certified English translations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.01(4), 9.01(5)
- effect if interpretation is a material fact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.05
Penalties of Perjury Statement

- form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11(2)
- required with additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.10, 15.11
- signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.11(2)
Power of Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.05
2001–1 I.R.B. 109 January 2, 2001

INDEX
References are to sections in Rev. Proc. 2001-2
Pre-submission Conferences ......................................................................... 8
Public Disclosure Under § 6110

- deletion statement required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.02, 10.08
exception when § 6104 applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.07
failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.06, 15.02
signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.02
- notice of intention to disclose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.14, 16.03
protesting deletions not made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.13, 16.04
Retroactive Effect
- in general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.02-17.06
on letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.06
- request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
format of request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.02, 18.03
scheduling conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.07, 18.04
Revenue Rulings
- effect on a continuing transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.04
request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.02
Section 301.9100 Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Status of Technical Advice Request

- to field or area office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.02, 15.06, 15.08, 15.10
- to taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.01, 15.09
Where to Send
- additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.10, 15.12
- taxpayer’s initial statement of facts and arguments after technical advice
request forwarded to national office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.01(2)
- technical advice request from area office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.03
- technical advice request from field office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.03
Withdrawal of Technical Advice Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
January 2, 2001 110 2001–1 I.R.B.

26 CFR 601.201: Rulings and determination (5) New section 3.01(6), dealing with (16) New section 3.01(55), dealing
letters.
§ 105 and amounts received under acci- with § 7701 and cross referencing new
Rev. Proc. 2001–3 dent and health plans, is moved from old section 3.01(5), is moved from old section
section 5.07. 5.33.
SECTION 1. PURPOSE AND (6) New section 3.01(8), dealing with (17) Old section 3.02(4), dealing with
NATURE OF CHANGES § 107 and rental value of parsonages, is the tax consequences of proposed legisla-
moved from old section 5.08. tion, is moved to new section 4.02(9).
.01 The purpose of this revenue proce- (7) New section 3.01(9), dealing with (18) New section 3.02(8) is added to
dure is to update Rev. Proc. 2000–3, §115 and income of states, municipalities, make it clear that the Service is not oblig-
2000–1 I.R.B. 103, as amplified and modi- etc., is added to indicate the Service’s ated to rule on every issue or transaction
fied by subsequent revenue procedures, by unwillingness to rule as to whether presented to it by taxpayers, even if the
providing a revised list of those areas of the income of certain state established mem- ruling is not precluded by any announced
Internal Revenue Code under the jurisdic- bership organizations is excluded from position. See Rev. Proc. 2001–1, section
tion of the Associate Chief Counsel gross income. 7.01.
(Corporate), the Associate Chief Counsel (8) New section 3.01(28), dealing with (19) New section 4.01(4), dealing with
(Financial Institutions & Products), the §§ 331, 453, and 1239 and the tax effects §§ 83 and 451 and property transferred in
Associate Chief Counsel (Income Tax & of installment sales of property between connection with performance of services,
Accounting), the Associate Chief Counsel entities with common ownership, is is moved from old section 5.04.
(Passthroughs & Special Industries), the moved from old section 5.15. (20) New section 4.01(24), dealing
Associate Chief Counsel (Procedure and (9) New section 3.01(29) combines old with §§ 302(b)(4) and (e), 331, 332, and
Administration), and the Division sections 3.01(22)–(24), (26) and (27) 346(a), concerning the effects on recipi-
Counsel/Associate Chief Counsel (Tax (which include type A, B, E and F reorgani- ents of distributions in corporate liquida-
Exempt and Government Entities) relating zations), adds type C reorganizations, tions, is a revision of old section 4.01(23).
to issues on which the Internal Revenue expands the no-rule concerning § 351 to (21) Old section 4.01(27), dealing with
Service will not issue letter rulings or deter- include all asset transfers, eliminates the § 341 and collapsible corporations, is
mination letters. For a list of areas under overlap prohibition (i.e., the Service previ- deleted. Rulings will still not ordinarily
the jurisdiction of the Associate Chief ously would not rule under any Code sec- be issued because such determinations are
Counsel (International) relating to interna- tion if the transaction is described under factual and covered by the no-rule provi-
tional issues on which the Service will not both one of the enumerated no-rule sections sion of section 4.02(1).
issue letter rulings or determination letters, and a section that is not included in the no- (22) Old sections 4.01(30), dealing with
see Rev. Proc. 2001–7, this Bulletin. For a rule provisions), and provides that the § 351 and transfer to corporation controlled
list of areas under the jurisdiction of the Service will now rule on an entire transac- by transferor, is deleted. Rulings will still
Office of the Commissioner, Tax Exempt tion (not just the narrow significant issue) if not be issued because such determinations
and Government Entities Division relating there is a significant issue in the transaction. are factual and covered by the no-rule pro-
to issues, plans or plan amendments on (10) New section 3.01(37), dealing with vision of section 4.02(1).
which the Service will not issue letter rul- § 453 and cross referencing new section (23) New section 4.01(33), dealing
ings and determination letters, see, respec- 3.01(28), is moved from old section 5.18. with the active business requirement of
tively, section 8 of Rev. Proc. 2001–4, this (11) New section 3.01(38), dealing with § 355(b), is renumbered from old section
Bulletin, and section 3.02 of Rev. Proc. § 457 and deferred compensation plans of 4.01(32) and revised.
2001–6, this Bulletin. state and local governments and tax- (24) New section 4.01(36), dealing
.02 Changes. exempt organizations, is moved from old with § 451 and cross referencing new sec-
(1) New section 2.03 is added to pro- section 5.19. tion 4.01(4), is moved from old section
vide generally a rule that previously has (12) New section 4.01(41), dealing 5.17.
been stated in various specific sections: with § 671 and trust income, deductions, (25) New section 4.01(40), dealing
that taxpayers may be required to make a and credits attributable to grantors and with § 664 and charitable remainder
representation with respect to matters on others as substantial owners, is moved trusts, is moved from old section 5.21.
which the Service will not rule, in con- from old section 5.22. (26) New section 4.01(48), dealing
nection with obtaining rulings on other (13) New section 3.01(43), dealing with with § 2503 and taxable gifts, is moved
issues. § 761 and cross referencing new section from old section 5.28.
(2) New section 3.01(1), dealing with 3.01(5), is moved from old section 5.24. (27) New section 4.01(49), dealing
§ 61 and how gross income is defined, is (14) New section 3.01(47), dealing with § 2514 and powers of appointment,
moved from old section 5.01. with § 1239 and cross referencing new is moved from old section 5.29.
(3) New section 3.01(4), dealing with section 3.01(28), is moved from old sec- (28) New section 4.01(52), dealing with
§ 101 and certain death benefits, is moved tion 5.25. § 2601 and the generation-skipping trans-
from old section 5.06. (15) New section 3.01(52), dealing fer tax, is moved from old section 5.30.
(4) New section 3.01(5), dealing with with §§ 3121, 3306 and 3401 and con- (29) New section 4.01(54), dealing with
§ 101, 761, and 7701, is moved from old cerning employment taxes, is moved from § 3121 and determinations of the employer-
section 5.05. old section 5.31. employee relationship, is added.
2001–1 I.R.B. 111 January 2, 2001

(30) New section 4.02(9) is moved means that unique and compelling reasons related transaction, the taxpayer must
from old section 3.02(4) because of a cor- must be demonstrated to justify the state in the request to the best of the tax-
responding change in Rev. Proc. 2001–1 issuance of a ruling or determination let- payer’s knowledge and belief the tax con-
(see new section 5.14 of Rev. Proc. ter. Those sections reflect a number of sequences of the no-rule issue. The
2001–1). specific questions and problems as well as Service’s ruling or determination letter
(31) Old sections 5.02, 5.03, 5.10, general areas. Section 5 lists specific will state that the Service did not consid-
5.11, 5.12, 5.13, 5.14, 5.16, 5.23 and 5.34 areas for which the Service is temporarily er, and no opinion is expressed upon, that
are deleted. not issuing rulings and determinations issue. In appropriate cases the Service
(32) Old sections 5.01, 5.05, 5.06, 5.07, because those matters are under extensive may decline to issue rulings or determina-
5.08, 5.09, 5.15, 5.18, 5.19, 5.23, 5.25, study. Finally, section 6 of this revenue tions on such larger transactions due to the
5.31 and 5.33 are moved to corresponding procedure lists specific areas where the relevance of the no-rule issue, despite the
new sections in section 3.01 (as indicated Service will not ordinarily issue rulings taxpayer’s representation.
above). because the Service has provided auto-
SECTION 3. AREAS IN WHICH
(33) Old sections 5.04, 5.17, 5.21, 5.22, matic approval procedures for these mat-
RULINGS OR DETERMINATION
5.28, 5.29 and 5.30 are moved to corre- ters.
LETTERS WILL NOT BE ISSUED
sponding new sections in section 4.01 (as See Rev. Proc. 2001–1, page 1, this
indicated above). Bulletin, particularly section 7 captioned .01 Specific questions and problems.
(34) New section 5.01, dealing with “Under What Circumstances Does the (1) Section 61.—Gross Income Defined.
§ 29 and credit for production and sale of Service Have Discretion to Issue Letter —Whether amounts voluntarily deferred
qualified fuels, is added. Rulings and Determination Letters?” for by a taxpayer under a deferred-compensa-
(35) New section 5.02, dealing with general instructions and other situations in tion plan maintained by an organization
reimbursement arrangements under which the Service will not or ordinarily described in § 501 (other than a plan
§ 62(c), is added. will not issue letter rulings or determina- maintained by an eligible employer pur-
(36) New section 5.05, dealing with tion letters. suant to the provisions of § 457) are cur-
exceptions to § 1031 exchanges, is added. With respect to the items listed, rev- rently includible in the taxpayer’s gross
(37) New section 5.09, dealing with enue rulings or revenue procedures may income.
§ 7701 and whether arrangements where be published in the Internal Revenue (2) Section 79.—Group-Term Life
taxpayers acquire undivided fractional Bulletin from time to time to provide gen- Insurance Purchased for Employees.—
interests in real property constitute sepa- eral guidelines regarding the position of Whether a group insurance plan for 10 or
rate entities for federal tax purposes, is the Service. more employees qualifies as group-term
added. Additions or deletions to this revenue insurance, if the amount of insurance is
(38) Old sections 6.01, 6.02, 6.03 and procedure as well as restatements of not computed under a formula that would
6.05, dealing with matters covered by items listed will be made by modification meet the requirements of § 1.79-1(c)(2)(ii)
automatic approval procedures have been of this revenue procedure. Changes will of the Income Tax Regulations if the
revised and/or updated. be published as they occur throughout group consisted of fewer than 10 employ-
the year and will be incorporated annual- ees.
SECTION 2. BACKGROUND AND
ly in a new revenue procedure published (3) Section 83.—Property Transferred
SCOPE OF APPLICATION
as the third revenue procedure of the in Connection with Performance of
.01 Background year. These lists should not be consid- Services.—Whether a restriction consti-
Whenever appropriate in the interest of ered all-inclusive. Decisions not to rule tutes a substantial risk of forfeiture, if the
sound tax administration, it is the policy on individual cases (as contrasted with employee is a controlling shareholder.
of the Service to answer inquiries of indi- those that present significant pattern Also, whether a transfer has occurred, if
viduals and organizations regarding their issues) are not reported in this revenue the amount paid for the property involves
status for tax purposes and the tax effects procedure and will not be added to sub- a nonrecourse obligation.
of their acts or transactions, prior to the sequent revisions. (4) Section 101.—Certain Death
filing of returns or reports that are .02 Scope of Application Benefits.—Whether there has been a
required by the revenue laws. This revenue procedure does not pre- transfer for value for purposes of § 101(a)
There are, however, certain areas in clude the submission of requests for in situations involving a grantor and a
which, because of the inherently factual technical advice to the National Office trust when (i) substantially all of the trust
nature of the problems involved, or for from other offices of the Service. corpus consists or will consist of insur-
other reasons, the Service will not issue .03 No-Rule Issues Part of Larger ance policies on the life of the grantor or
rulings or determination letters. These Transactions. If it is impossible for the the grantor’s spouse, (ii) the trustee or any
areas are set forth in four sections of this Service to determine the tax consequences other person has a power to apply the
revenue procedure. Section 3 reflects of a larger transaction without knowing trust’s income or corpus to the payment of
those areas in which rulings and determi- the resolution of an issue on which the premiums on policies of insurance on the
nations will not be issued. Section 4 sets Service will not issue rulings and determi- life of the grantor or the grantor’s spouse,
forth those areas in which they will not nations under this revenue procedure (iii) the trustee or any other person has a
ordinarily be issued. “Not ordinarily” involving a part of the transaction or a power to use the trust’s assets to make
January 2, 2001 112 2001–1 I.R.B.

loans to the grantor’s estate or to purchase (11) Section 119.—Meals or Lodging primary purpose the medical care of the
assets from the grantor’s estate, and (iv) Furnished for the Convenience of the taxpayer or the taxpayer’s spouse or
there is a right or power in any person that Employer.—Whether the value of meals dependent, or is related directly to such
would cause the grantor to be treated as or lodging is excludible from gross medical care.
the owner of all or a portion of the trust income by an employee who is a control- (18) Section 264(b).—Certain
under §§ 673 to 677. ling shareholder of the employer. Amounts Paid in Connection with
(5) Sections 101, 761, and 7701.— (12) Section 121 and former § 1034.— Insurance Contracts.—Whether “substan-
Definitions.—Whether, in connection Exclusion of Gain from Sale of Principal tially all” the premiums of a contract of
with the transfer of a life insurance poli- Residence; Rollover of Gain on Sale of insurance are paid within a period of 4
cy to an unincorporated organization, (i) Principal Residence.—Whether property years from the date on which the contract
the organization will be treated as a part- qualifies as the taxpayer’s principal resi- is purchased. Also, whether an amount
nership under §§ 761 and 7701, or (ii) the dence. deposited is in payment of a “substantial
transfer of the life insurance policy to the (13) Section 125.—Cafeteria Plans.— number” of future premiums on such a
organization will be exempt from the Whether amounts used to provide group- contract.
transfer for value rules of § 101, when term life insurance under § 79, accident (19) Section 264(c)(1).—Certain
substantially all of the organization’s and health benefits under §§ 105 and 106, Amounts Paid in Connection with
assets consists or will consist of life and dependent care assistance programs Insurance Contracts.—Whether § 264(c)(1)
insurance policies on the lives of the under § 129 are includible in the gross applies.
members. income of participants and considered (20) Section 269.—Acquisitions Made
(6) Section 105.—Amounts Received “wages” for purposes of §§ 3401, 3121, to Evade or Avoid Income Tax.—Whether
Under Accident and Health Plans.— and 3306 when the benefits are offered an acquisition is within the meaning of
Whether a medical reimbursement plan, through a cafeteria plan. § 269.
funded by employer contributions, con- (14) Section 162.—Trade or Business (21) Section 274.—Disallowance of
taining a provision allowing unused Expenses.—Whether compensation is Certain Entertainment, Etc., Expenses.—
amounts to be carried over and accumu- reasonable in amount. Whether a taxpayer who is traveling away
lated in an employee’s account qualifies (15) Section 163.—Interest.—The from home on business may, in lieu of
as an accident and health plan under income tax consequences of transactions substantiating the actual cost of meals,
§ 105. involving “shared appreciation mort- deduct a fixed per-day amount for meal
(7) Section 105(h).—Amount Paid to gage” (SAM) loans in which a taxpayer, expenses that differs from the amount pre-
Highly Compensated Individuals Under borrowing money to purchase real prop- scribed in the revenue procedure provid-
Discriminatory Self-Insured Medical erty, pays a fixed rate of interest on the ing optional rules for substantiating the
Expense Reimbursement Plan.— mortgage loan below the prevailing mar- amount of travel expenses for the period
Whether, following a determination that a ket rate and will also pay the lender a per- in which the expense was paid or
self-insured medical expense reimburse- centage of the appreciation in value of the incurred, such as Rev. Proc. 97–59,
ment plan is discriminatory, that plan had real property upon termination of the 1997–2 C.B. 593, or its successor, Rev.
previously made reasonable efforts to mortgage. This applies to all SAM Proc. 98–64, 1998–2 C.B. 825.
comply with tax anti-discrimination rules. arrangements where the loan proceeds (22) Section 302.—Distributions in
(8) Section 107.—Rental value of par- are used for commercial or business Redemption of Stock.—Whether § 302(b)
sonages.—Whether amounts distributed activities, or where used to finance a per- applies when the consideration given in
to a retired minister from a pension or sonal residence, if the facts are not simi- redemption by a corporation consists
annuity plan should be excludible from lar to those described in Rev. Rul. 83–51, entirely or partly of its notes payable, and
the minister’s gross income as a parson- 1983–1 C.B. 48. (Also §§ 61, 451, 461, the shareholder’s stock is held in escrow
age allowance under § 107. 856, 1001, and 7701.) or as security for payment of the notes
(9) Section 115.—Income of states, (16) Section 170.—Charitable, Etc., with the possibility that the stock may or
municipalities, etc.—Whether the income Contributions and Gifts.—Whether a tax- will be returned to the shareholder in the
of membership organizations established payer who advances funds to a charitable future, upon the happening of specific
by states exclusively to reimburse mem- organization and receives therefor a defaults by the corporation.
bers for losses arising from workmen’s promissory note may deduct as contribu- (23) Section 302.—Distributions in
compensation claims is excluded from tions, in one taxable year or in each of Redemption of Stock.—Whether § 302-
gross income under section 115. several years, amounts forgiven by the (b) applies when the consideration given
(10) Section 117.—Qualified Scholar- taxpayer in each of several years by in redemption by a corporation in
ships.—Whether an employer-related endorsement on the note. exchange for a shareholder’s stock con-
scholarship or fellowship grant is excludi- (17) Section 213.—Medical, Dental, sists entirely or partly of the corporation’s
ble from the employee’s gross income, if Etc., Expenses.—Whether a capital promise to pay an amount based on, or
there is no intermediary private foundation expenditure for an item that is ordinarily contingent on, future earnings of the cor-
distributing the grants, as there was in Rev. used for personal, living, or family pur- poration, when the promise to pay is con-
Proc. 76–47, 1976–2 C.B. 670. poses, such as a swimming pool, has as its tingent on working capital being main-
2001–1 I.R.B. 113 January 2, 2001

tained at a certain level, or any other sim- corporation or the selling shareholders In addition, the Service will now rule on
ilar contingency. includes an installment obligation of the an entire transaction if there is a signifi-
(24) Section 302.—Distributions in purchasing entity. cant issue, and the Service eliminated the
Redemption of Stock.—Whether § 302(b) (29) Sections 332, 351 and 368(a)(1)(A), overlap provision which prohibited the
applies to a redemption of stock, if after (B), (C), (E) and (F). Definitions Relating to Service from issuing rulings under any
the redemption the distributing corpora- Corporate Transfers and Reorganizations.— Code section if the transaction qualifies
tion uses property that is owned by the Whether a transaction qualifies under § 332 under both one of the sections listed in this
shareholder from whom the stock is or § 351 for nonrecognition treatment, or revenue procedure and under a section not
redeemed and the payments by the corpo- whether it constitutes a corporate reorgani- listed in this revenue procedure.
ration for the use of the property are zation within the meaning of § 368(a)(1)(A) (30) Section 351.–See section 3.01(29)
dependent upon the corporation’s future (including a transaction that qualifies under above.
earnings or are subordinate to the claims § 368(a)(1)(A) by reason of § 368(a)(2)- (31) Section 368.–See section 3.01(29)
of the corporation’s general creditors. (D) or § 368(a)(2)(E)), § 368(a)(1)(B), above.
Payments for the use of property will not § 368(a)(1)(C), § 368(a)(1)(E) (or a transac- (32) Section 368(a)(1)(B).—Definitions
be considered to be dependent upon future tion that also qualifies under § 1036) or Relating to Corporate Reorganizations.—
earnings merely because they are based § 368(a)(1)(F), and whether various conse- The acceptability of an estimation proce-
on a fixed percentage of receipts or sales. quences (such as nonrecognition and basis) dure or the acceptability of a specific sam-
(25) Section 302.—Distributions in result from the application of that section, pling procedure to determine the basis of
Redemption of Stock.—Whether the unless the Service determines that there is a stock acquired by an acquiring corporation
acquisition or disposition of stock significant issue that must be resolved in in a reorganization described in
described in § 302(c)(2)(B) has, or does order to decide those matters. Not-with- § 368(a)(1)(B).
not have, as one of its principal purposes standing the foregoing, the Service will rule (33) Section 425.—Substitution or
the avoidance of federal income taxes on the application of § 351 to a controlled Assumption of Incentive Stock
within the meaning of that section, unless corporation when the transaction is under- Options.—Whether the substitution of a
the facts and circumstances are materially taken prior to the distribution of the stock of new Incentive Stock Option (“ISO”) for
identical to those set forth in Rev. Rul. the controlled corporation in a transaction an old ISO, or the assumption of an old
85–19, 1985–1 C.B. 94, Rev. Rul. 79–67, qualifying under § 355. ISO, by an employer by reason of a cor-
1979–1 C.B. 128, Rev. Rul. 77–293, SIGNIFICANT ISSUE: A significant porate transaction constitutes a modifica-
1977–2 C.B. 91, Rev. Rul. 57–387, issue is an issue of law that meets the tion which results in the issuance of a new
1957–2 C.B. 225, Rev. Rul. 56–584, three following tests: (1) the issue is not option by reason of failing to satisfy
1956–2 C.B. 179, or Rev. Rul. 56–556, clearly and adequately addressed by a the spread test requirement of § 425(a)(1)
1956–2 C.B. 177. statute, regulation, decision of a court, tax or the ratio test requirement of
(26) Section 302(b)(4) and (e).— treaty, revenue ruling, revenue procedure, § 1.425–1(a)(4). The Service will contin-
Redemption from Noncorporate notice, or other authority published in the ue to rule on the issue of whether the new
Shareholder in Partial Liquidation; Partial Internal Revenue Bulletin; (2) the resolu- ISO or the assumption of the old ISO
Liquidation Defined.—The amount of tion of the issue is not essentially free gives the employee additional benefits not
working capital attributable to a business from doubt; and (3) the issue is legally present under the old option within the
or portion of a business terminated that significant and germane to determining meaning of § 425(a)(2).
may be distributed in partial liquidation. the major tax consequences of the trans- (34) Section 451.—General Rule for
(27) Section 312.—Effect on Earnings action. Taxable Year of Inclusion.—The tax con-
and Profits.—The determination of the OBTAINING A RULING: To obtain a sequences of a non-qualified unfunded
amount of earnings and profits of a corpo- ruling on a transaction involving a signif- deferred-compensation arrangement with
ration. icant issue, the taxpayer must in its ruling respect to a controlling shareholder-
(28) Sections 331, 453, and 1239.— request explain the significance of the employee eligible to participate in the
The Tax Effects of Installment Sales of issue, set forth the authorities most close- arrangement.
Property Between Entities with Common ly related to the issue, and explain why the (35) Section 451.—General Rule for
Ownership.—The tax effects of a transac- issue is not resolved by these authorities. Taxable Year of Inclusion.—The tax con-
tion in which there is a transfer of proper- As a pilot program to better serve tax- sequences of unfunded deferred-compen-
ty by a corporation to a partnership or payers the No-Rule for §§ 368(a)(1) (A), sation arrangements where the arrange-
other noncorporate entity (or the transfer (B), (C), (E) and (F), and §§ 332 and 351 ments fail to meet the requirements of
of stock to such entity followed by a liq- were combined, simplified and expanded. Rev. Proc. 92–65, 1992–2 C.B. 428, and
uidation of the corporation) when more Our objective is to encourage taxpayers to Rev. Proc. 71–19, 1971–1 C.B. 698.
than a nominal amount of the stock of seek rulings on transactions involving (36) Sections 451 and 457.—General
such corporation and the capital or benefi- §§ 351 and 368 significant issues that are Rule for Taxable Year of Inclusion;
cial interests in the purchasing entity (that not essentially free from doubt, and to pre- Deferred Compensation Plans of State
is, more than 20 percent in value) is vent expending limited Service resources and Local Governments and Tax-Exempt
owned by the same persons, and the con- on the tax consequences of transactions Organizations.—The tax consequences to
sideration to be received by the selling that are clear under controlling authorities. unidentified independent contractors in
January 2, 2001 114 2001–1 I.R.B.

nonqualified unfunded deferred-compen- family partnership when capital is not a (56) Section 7701.—See section
sation plans. This applies to plans estab- material income producing factor. 3.01(5), above.
lished under § 451 by employers in the (44) Section 761.—See section .02 General Areas.
private sector and to plans of state and 3.01(5), above. (1) The results of transactions that lack
local governments and tax-exempt organi- (45) Section 856.—Definition of Real a bona fide business purpose or have as
zations under § 457. However, a ruling Estate Investment Trust.—Whether a cor- their principal purpose the reduction of
with respect to a specific independent poration whose stock is “paired” with or federal taxes.
contractor’s participation in such a plan “stapled” to stock of another corporation (2) A matter upon which a court deci-
may be issued. will qualify as a real estate investment sion adverse to the Government has been
(37) Section 453.—See section trust under § 856, if the activities of the handed down and the question of follow-
3.01(28), above. corporations are integrated. ing the decision or litigating further has
(38) Section 457.—Deferred Compen- (46) Section 1034 (prior to TRA not yet been resolved.
sation Plans of State and Local 1997).—See section 3.01(12), above. (3) A matter involving alternate plans
Governments and Tax-Exempt Organiza- (47) Section 1221.—Capital Asset of proposed transactions or involving
tions.—The tax effect of provisions under Defined.—Whether specialty stock allo- hypothetical situations.
the Small Business Job Protection Act cated to an investment account by a regis- (4) Whether under Subtitle F (Proce-
affecting plans described in § 457(b), if tered specialist on a national securities dure and Administration) reasonable
such provisions do not comply with section exchange is a capital asset. cause, due diligence, good faith, clear and
4 of Rev. Proc. 98–40, 1998–2 C.B. 134. (48) Section 1239.—See section convincing evidence, or other similar
(39) Section 641.—Imposition of 3.01(28), above. terms that require a factual determination
Tax.—Whether the period of administra- (49) Section 1551.—Disallowance of exist.
tion or settlement of an estate or a trust the Benefits of the Graduated Corporate (5) Whether a proposed transaction
(other than a trust described in § 664) is rea- Rates and Accumulated Earnings would subject the taxpayer to a criminal
sonable or unduly prolonged. Credit.—Whether a transfer is within penalty.
(40) Section 642(c).—Deduction for § 1551. (6) A request that does not comply with
Amounts Paid or Permanently Set Aside for (50) Section 2031.—Definition of the provisions of Rev. Proc. 2001–1.
a Charitable Purpose.—Allowance of an Gross Estate.—Actuarial factors for valu- (7) Whether, under the common law
unlimited deduction for amounts set aside ing interests in the prospective gross rules applicable in determining the
by a trust or estate for charitable purposes estate of a living person. employer-employee relationship, a pro-
when there is a possibility that the corpus of (51) Section 2512.—Valuation of fessional staffing corporation (loan-out
the trust or estate may be invaded. Gifts.—Actuarial factors for valuing corporation) or the subscriber is the
(41) Section 664.—Charitable prospective or hypothetical gifts of a donor. employer of individuals, if:
Remainder Trusts.—Whether the settle- (52) Sections 3121, 3306, and 3401.— (i) the loan-out corporation hires em-
ment of a charitable remainder trust upon Definitions.—For purposes of determin- ployees of the subscriber and assigns the
the termination of the noncharitable interest ing prospective employment status, employees back to the subscriber, or
is made within a reasonable period of time. whether an individual will be an employ- (ii) the loan-out corporation assigns
(42) Section 671.—Trust Income, ee or an independent contractor. A ruling individuals to subscribers for more than a
Deductions, and Credits Attributable to with regard to prior employment status temporary period (1 year or longer).
Grantors and Others as Substantial may be issued. (8) Questions that the Service deter-
Owners.—Whether the grantor will be con- (53) Sections 3121, 3306, and 3401.— mines, in its discretion, should not be
sidered the owner of any portion of a trust Definitions; Employment Taxes.—Who is answered in the general interests of tax
when (i) substantially all of the trust corpus the employer of an “employee-owner” as administration.
consists or will consist of insurance policies defined in § 269A(b)(2).
on the life of the grantor or the grantor’s (54) Section 4980B.—Failure to
RULINGS OR DETERMINATION
spouse, (ii) the trustee or any other person Satisfy Continuation Coverage Require-
LETTERS WILL NOT ORDINARILY
has a power to apply the trust’s income or ments of Group Health Plans.—Whether
BE ISSUED
corpus to the payment of premiums on poli- an action is “gross misconduct” within the
cies of insurance on the life of the grantor or meaning of § 4980B(f)(3)(B). (See sec- .01 Specific questions and problems.
the grantor’s spouse, (iii) the trustee or any tion 3.05 of Rev. Proc. 87–28, 1987–1 (1) Sections 38, 39, 46, and 48.—
other person has a power to use the trust’s C.B. 770, 771.) General Business Credit; Carryback and
assets to make loans to the grantor’s estate (55) Section 7701.—Definitions.— Carryforward of Unused Credits; Amount
or to purchase assets from the grantor’s The classification of an instrument that of Credit; Energy Credit; Reforestation
estate, and (iv) there is a right or power in has certain voting and liquidations rights Credit.—Application of these sections
any person that would cause the grantor to in an issuing corporation but whose divi- where the formal ownership of property is
be treated as the owner of all or a portion of dend rights are determined by reference to in a party other than the taxpayer, except
the trust under §§ 673 to 677. the earnings of a segregated portion of the when title is held merely as security.
(43) Section 704(e).—Family Partner- issuing corporation’s assets, including (2) Section 61.—Gross Income
ships.—Matters relating to the validity of a assets held by a subsidiary. Defined.—Determination as to who is the
2001–1 I.R.B. 115 January 2, 2001

true owner of property in cases involving (8) Section 141.—Private Activity (12) Sections 162 and 262.—Trade or
the sale of securities, or participation inter- Bond; Qualified Bond.—With respect to Business Expenses; Personal, Living, and
ests therein, where the purchaser has the requests made pursuant to Rev. Proc. Family Expenses.—Whether expenses are
contractual right to cause the securities, or 88–33, 1988–1 C.B. 835, whether state or nondeductible commuting expenses,
participation interests therein, to be pur- local bonds will meet the “private busi- except for situations governed by Rev.
chased by either the seller or a third party. ness use test” and the “private security or Rul. 99–7, 1999–1 C.B. 361.
(3) Sections 61 and 163.—Gross In- payment test” under § 141(b)(1) and (2) in (13) Section 163.—See section 4.01(3),
come Defined; Interest.—Determina- situations in which the proceeds are used above.
tions as to who is the true owner of prop- to finance certain output facilities and, (14) Section 167.—Depreciation.
erty or the true borrower of money in pursuant to a contract to take, or take or (i) Useful lives of assets.
cases in which the formal ownership of pay for, a nongovernmental person pur- (ii) Depreciation rates.
the property, or the liability for the indebt- chases 30 percent or more of the actual (iii) Salvage value of assets.
edness, is in another party. output of the facility but 10 percent or less (15) Sections 167 and 168.—
(4) Sections 83 and 451.—Property of the subparagraph (5) output of the Depreciation; Accelerated Cost Recovery
Transferred in Connection with facility as defined in § 1.103–7(b)(5)(ii)- System.—Application of those sections
Performance of Services; General Rule (b) (issued under former § 103(b)). In where the formal ownership of property is
for Taxable Year of Inclusion.—When similar situations, the Service will not in a party other than the taxpayer except
compensation is realized by a person who, ordinarily issue rulings or determination when title is held merely as security.
in connection with the performance of letters concerning questions arising under (16) Section 170.—Charitable, Etc.,
services, is granted a nonstatutory option paragraphs (3), (4), and (5) of § 141(b). Contributions and Gifts.—Whether a trans-
without a readily ascertainable fair market (9) Sections 142 and 144.—Exempt fer to a pooled income fund described in
value to purchase stock at a price that is Facility Bond; Qualified Small Issue § 642(c)(5) qualifies for a charitable contri-
less than the fair market value of the stock Bond.—Whether an issue of private activ- bution deduction under § 170(f)(2)(A).
on the date the option is granted. ity bonds meets the requirements of § 142 (17) Section 170(c).—Charitable, Etc.,
(5) Section 103.—Interest on State and or § 144(a), if the sum of— Contributions and Gifts.—Whether a tax-
Local Bonds.—Whether the interest on (i) the portion of the proceeds used payer who transfers property to a charita-
state or local bonds will be excludible to finance a facility in which an ble organization and thereafter leases
from gross income under § 103(a), if the owner (or related person) or a back all or a portion of the transferred
proceeds of issues of bonds (other than lessee (or a related person) is a property may deduct the fair market value
advance refunding issues) are placed in user of the facility both after the of the property transferred and leased
escrow or otherwise not expended for a bonds are issued and at any time back as a charitable contribution.
governmental purpose for an extended before the bonds were issued, (18) Section 170.—Charitable, Etc.,
period of time even though the proceeds and Contributions and Gifts.—Whether a
are invested at a yield that will not exceed (ii) the portion used to pay issuance transfer to a charitable remainder trust
the yield on the state or local bonds prior costs and non-qualified costs, described in § 664 that provides for annu-
to their expenditure. equals more than 5 percent of ity or unitrust payments for one or two
(6) Section 103.—Interest on State and the net proceeds, as defined in measuring lives qualifies for a charitable
Local Bonds.—Whether a state or local § 150(a)(3). deduction under § 170(f)(2)(A).
governmental obligation that does not (10) Section 148.—Arbitrage.— (19) Section 216.—Deduction of
meet the criteria of section 5 of Rev. Proc. Whether amounts received as proceeds Taxes, Interest, and Business Deprecia-
89–5, 1989–1 C.B. 774, is an “arbitrage from the sale of municipal bond financed tion by Cooperative Housing Corporation
bond” within the meaning of former property and pledged to the payment of Tenant-Stockholder.—If a cooperative
§ 103(c)(2) solely by reason of the invest- debt service or pledged as collateral for housing corporation (CHC), as defined in
ment of the bond proceeds in acquired the municipal bond issue are sinking fund § 216(b)(1), transfers an interest in real
nonpurpose obligations at a materially proceeds within the meaning of former property to a corporation (not a CHC) in
higher yield more than 3 years after § 1.103–13(g) (issued under former exchange for stock or securities of the
issuance of the bonds or 5 years after § 103(c)) or replaced proceeds described transferee corporation, which engages in
issuance of the bonds in the case of con- in § 148(a)(2) (or former § 103(c)(2)(B)). commercial activity with respect to the
struction issues described in former (11) Section 162.—Trade or Business real property interest transferred, whether
§ 1.103–13(a)(2)(ii)(E). Expenses.—Whether the requisite risk (i) the income of the transferee corpora-
(7) Sections 104(a)(2) and 3121.— shifting and risk distribution necessary to tion derived from the commercial activity,
Compensation for Injuries or Sickness; constitute insurance are present for pur- and (ii) any cash or property (attributable
Definitions.—Whether an allocation of poses of determining the deductibility to the real property interest transferred)
the amount of a settlement award (includ- under § 162 of amounts paid (premiums) distributed by the transferee corporation
ing a lump sum award) between back pay, by a taxpayer for insurance, unless the to the CHC will be considered as gross
compensatory damages, punitive dam- facts of the transaction are within the income of the CHC for the purpose of
ages, etc. is a proper allocation for federal scope of Rev. Rul. 78–338, 1978–2 C.B. determining whether 80 percent or more
tax purposes. 107, or Rev. Rul. 77–316, 1977–2 C.B. 53. of the gross income of the CHC is derived
January 2, 2001 116 2001–1 I.R.B.

from tenant-stockholders within the dation of a corporation by a series of dis- Accounting; Qualified Personal Service
meaning of § 216(b)(1)(D). tributions, when the distributions in liqui- Corporation.—Whether 95 percent or
(20) Section 262.—See section dation are to be made over a period in more of the time spent by employees of
4.01(12), above. excess of 3 years from the adoption of the the corporation, serving in their capacity
(21) Section 265(a)(2).—Expenses and plan of liquidation. as such, is devoted to the performance of
Interest Relating to Tax-Exempt Income.— (28) Section 346(a).—See sections services within the meaning of § 1.448–
Whether indebtedness is incurred or contin- 4.01(24) and (27) above. 1T(e)(4)(i).
ued to purchase or carry obligations the (29) Section 351.—Transfer to Corpor- (34) Section 451.—General Rule for
interest on which is wholly exempt from the ation Controlled by Transferor.—Whether Taxable Year of Inclusion.—The tax con-
taxes imposed by subtitle A. § 351 applies to the transfer of an interest sequences of a nonqualified deferred
(22) Section 302.—Distributions in in real property by a cooperative housing compensation arrangement using a
Redemption of Stock.—The tax effect of corporation (as described in § 216(b)(1)) grantor trust where the trust fails to meet
the redemption of stock for notes, when to a corporation in exchange for stock or the requirements of Rev. Proc. 92–64,
the payments on the notes are to be made securities of the transferee corporation, if 1992–2 C.B. 422.
over a period in excess of 15 years from the transferee engages in commercial (35) Section 451.—See section
the date of issuance of such notes. activity with respect to the real property 4.01(4), above.
(23) Section 302(b)(4) and (e).— interest transferred. (36) Section 584.—Common Trust
Redemption from Noncorporate (30) Section 355.—Distribution of Funds.—Whether a common trust fund
Shareholder in Partial Liquidation; Partial Stock and Securities of a Controlled plan meets the requirements of § 584.
Liquidation Defined.—Whether a distrib- Corporation.—Whether the active busi- (For § 584 plan drafting guidance, see
ution will qualify as a distribution in par- ness requirement of § 355(b) is met when, Rev. Proc. 92–51, 1992–1 C.B. 988.)
tial liquidation under § 302(b)(4) and within the 5-year period described in (37) Section 642.—Special Rules for
(e)(1)(A), unless it results in a 20 percent § 355(b)(2)(B), a distributing corporation Credits and Deductions; Pooled Income
or greater reduction in (i) gross revenue, acquired control of a controlled corpora- Fund.—Whether a pooled income fund
(ii) net fair market value of assets, and tion as a result of the distributing corpora- satisfies the requirements described in
(iii) employees. (Partial liquidations that tion transferring cash or other liquid or § 642(c)(5).
qualify as § 302(e)(2) business termina- inactive assets to the controlled corpora- (38) Section 664.—Charitable
tions are not subject to this provision.) tion in a transaction in which gain or loss Remainder Trusts.—Whether a charitable
(24) Sections 302(b)(4) and (e), 331, was not recognized as a result of the trans- remainder trust that provides for annuity
332, and 346(a).—Effects on Recipients fer meeting the requirements of § 351(a) or unitrust payments for one or two mea-
of Distributions in Corporate or § 368(a)(1)(D). suring lives satisfies the requirements
Liquidations.—The tax effect of the liqui- (31) Section 355.—Distribution of described in § 664.
dation of a corporation preceded or fol- Stock and Securities of a Controlled (39) Section 664.—Charitable
lowed by the transfer of all or a part of the Corporation.—Whether the active busi- Remainder Trusts.—Whether a trust that
business assets to another corporation (1) ness requirement of § 355(b) is met when will calculate the unitrust amount under
that is the alter ego of the liquidating cor- the gross assets of the trades or business- § 664(d)(3) qualifies as a § 664 charitable
poration, and (2) which, directly or indi- es relied on to satisfy that requirement remainder trust when a grantor, a trustee,
rectly, is owned more than 20 percent in will have a fair market value that is less a beneficiary, or a person related or subor-
value by persons holding directly or indi- than 5 percent of the total fair market dinate to a grantor, a trustee, or a benefi-
rectly more than 20 percent in value of the value of the gross assets of the corpora- ciary can control the timing of the trust’s
liquidating corporation’s stock. For pur- tion directly conducting the trades or receipt of trust income from a partnership
poses of this section, ownership will be businesses. The Service may rule that the or a deferred annuity contract to take
determined by application of the construc- trades or businesses satisfy the active advantage of the difference between trust
tive ownership rules of § 318(a) as modi- trade or business requirement of § 355(b) income under § 643(b) and income for
fied by § 304(c)(3). if it can be established that, based upon federal income tax purposes for the bene-
(25) Section 306.—Dispositions of all relevant facts and circumstances, the fit of the unitrust recipient.
Certain Stock.—Whether the distribution trades or businesses are not de minimis (40) Sections 671 to 679.—Grantors
or disposition or redemption of “section compared with the other assets or activi- and Others Treated as Substantial
306 stock” in a closely held corporation is ties of the corporation and its sub- Owners.—In a nonqualified, unfunded
in pursuance of a plan having as one of its sidiaries. deferred compensation arrangement
principal purposes the avoidance of feder- (32) Section 441(i).—Taxable Year of described in Rev. Proc. 92–64, the tax
al income taxes within the meaning of Personal Service Corporations.—Whether consequences of the use of a trust, other
§ 306(b)(4). the principal activity of the taxpayer during than the model trust described in that rev-
(26) Sections 331 and 332.—See sec- the testing period for the taxable year is the enue procedure.
tion 4.01(24), above. performance of personal services within the (41) Section 816.—Life Insurance
(27) Sections 331 and 346(a).—Gain meaning of § 1.441–4T(d)(1)(ii). Company Defined.—Whether the requi-
or Loss to Shareholders in Corporate (33) Section 448(d)(2)(A).— site risk shifting and risk distribution nec-
Liquidations.—The tax effect of the liqui- Limitation on Use of Cash Method of essary to constitute insurance are present
2001–1 I.R.B. 117 January 2, 2001

for purposes of determining if a company grantor to be treated as the owner of all or under § 7520 of the right to receive the trust
is an “insurance company” under a portion of the trust under §§ 673 to 677. corpus at the expiration of the term of the
§ 1.801–3(a), unless the facts of the trans- (47) Section 2514.—Powers of Appoint- trust. The possibility that the grantor may
action are within the scope of Rev. Rul. ment.—If the beneficiaries of a trust permit die prior to the expiration of the specified
78–338, 1978–2 C.B. 107, or Rev. Rul. a power of withdrawal to lapse, whether term is not taken into account, nor is the
77–316, 1977–2 C.B. 53. § 2514(e) will be applicable to each benefi- value of any reversion retained by the
(42) Section 1362.—Election; ciary in regard to the power when (i) the grantor or the grantor’s estate.
Revocation; Termination.—All situations trust corpus consists or will consist substan- (52) Section 3121.–Definitions.–
in which an S corporation is eligible to tially of insurance policies on the life of the Determinations as to which of two entities,
obtain relief for late S corporation, quali- grantor or the grantor’s spouse, (ii) the under common law rules applicable in
fied subchapter S subsidiary, qualified trustee or any other person has a power to determining the employer-employee rela-
subchapter S trust, or electing small busi- apply the trust’s income or corpus to the tionship, is the employer, when one entity is
ness trust elections under sections 4 and 5 payment of premiums on policies of insur- treating the worker as an employee.
of Rev. Proc. 98–55, 1998–2 C.B. 645. ance on the life of the grantor or the (53) Section 3121.—See section
(For instructions on how to seek this grantor’s spouse, (iii) the trustee or any 4.01(7), above.
relief, see Rev. Proc. 98–55.) other person has a power to use the trust’s .02 General areas.
(43) Section 1502.—Regulations.— assets to make loans to the grantor’s estate (1) Any matter in which the determina-
Whether a parent cooperative housing or to purchase assets from the grantor’s tion requested is primarily one of fact,
corporation (as defined in § 216(b)(1)) estate, (iv) the trust beneficiaries have the e.g., market value of property, or whether
will be permitted to file a consolidated power to withdraw, on demand, any addi- an interest in a corporation is to be treated
income tax return with its transferee sub- tional transfers made to the trust, and (v) as stock or indebtedness.
sidiary, if the transferee engages in com- there is a right or power in any person that (2) Situations where the requested rul-
mercial activity with respect to the real would cause the grantor to be treated as the ing deals with only part of an integrated
property interest transferred to it by the owner of all or a portion of the trust under transaction. Generally, a letter ruling will
parent. §§ 673 to 677. not be issued on only part of an integrated
(44) Section 2055.—Transfers for (48) Section 2522.—Charitable and transaction. If, however, a part of a trans-
Public, Charitable, and Religious Uses.— Similar Gifts.—Whether a transfer to a action falls under a no-rule area, a letter
Whether a transfer to a pooled income pooled income fund described in ruling on other parts of the transaction
fund described in § 642(c)(5) qualifies for § 642(c)(5) qualifies for a charitable may be issued. Before preparing the let-
a charitable deduction under § 2055(e) deduction under § 2522(c)(2)(A). ter ruling request, a taxpayer should call
(2)(A). (49) Section 2522.—Charitable and the Office of the Associate Chief Counsel
(45) Section 2055.—Transfers for Similar Gifts.—Whether a transfer to a having jurisdiction for the matters on
Public, Charitable, and Religious Uses.— charitable remainder trust described in which the taxpayer is seeking a letter rul-
Whether a transfer to a charitable remain- § 664 that provides for annuity or unitrust ing to discuss whether a letter ruling will
der trust described in § 664 that provides payments for one or two measuring lives be issued on part of the transaction.
for annuity or unitrust payments for one qualifies for a charitable deduction under (3) Situations where two or more items
or two measuring lives qualifies for a § 2522(c)(2)(A). or sub-methods of accounting are interre-
charitable deduction under § 2055(e) (50) Section 2601.—Tax Imposed.— lated. If two or more items or sub-meth-
(2)(A). Whether a trust that is excepted from the ods of accounting are interrelated, ordi-
(46) Section 2503.—Taxable Gifts.— application of the generation-skipping narily a letter ruling will not be issued on
Whether the transfer of property to a trust transfer tax because it was irrevocable on a change in accounting method involving
will be a gift of a present interest in prop- September 25, 1985, will lose its excepted only one of the items or sub-methods.
erty when (i) the trust corpus consists or status if the situs of the trust is changed (4) The tax effect of any transaction to
will consist substantially of insurance from the United States to a situs outside of be consummated at some indefinite future
policies on the life of the grantor or the the United States. time.
grantor’s spouse, (ii) the trustee or any (51) Section 2702.—Special Valuation (5) Any matter dealing with the ques-
other person has a power to apply the Rules in Case of Transfers of Interests in tion of whether property is held primarily
trust’s income or corpus to the payment of Trusts.—Whether annuity interests are for sale to customers in the ordinary
premiums on policies of insurance on the qualified annuity interests under § 2702 if course of a trade or business.
life of the grantor or the grantor’s spouse, the amount of the annuity payable annually (6) The tax effect of a transaction if
(iii) the trustee or any other person has a is more than 50 percent of the initial net fair any part of the transaction is involved in
power to use the trust’s assets to make market value of the property transferred to litigation among the parties affected by
loans to the grantor’s estate or to purchase the trust, or if the value of the remainder the transaction, except for transactions
assets from the grantor’s estate, (iv) the interest is less than 10 percent of the initial involving bankruptcy reorganizations.
trust beneficiaries have the power to with- net fair market value of the property trans- (7)(a) Situations where the taxpayer
draw, on demand, any additional transfers ferred to the trust. For purposes of the 10 or a related party is domiciled or orga-
made to the trust, and (v) there is a right or percent test, the value of the remainder nized in a foreign jurisdiction with
power in any person that would cause the interest is the present value determined which the United States does not have an
January 2, 2001 118 2001–1 I.R.B.

effective mechanism for obtaining tax PUBLICATION OF A REVENUE and sells resulting wood products
information with respect to civil tax RULING, REVENUE PROCEDURE, (including any unfinished or finished
examinations and criminal tax investiga- REGULATIONS OR OTHERWISE products derived, manufactured, or pro-
tions, which would preclude the Service duced from such products) in a transac-
from obtaining information located in .01 Section 29.—Credit for tion to which § 631 does not apply, (b)
such jurisdiction that is relevant to the Production and Sale of Qualified recognizes gain or loss on cutting the
analysis or examination of the tax issues Fuels.—Whether a solid fuel other than timber pursuant to a § 631(a) election, or
involved in the ruling request. coke or a fuel produced from waste coal (c) recognizes gain or loss on the dispos-
(b) The provisions of subsection is a qualified fuel under § 29(c)(1)(C). al of timber under a contract to which
(a) above shall not apply if the taxpayer Waste coal for this purpose is limited to § 631(b) applies, and (2) an S corpora-
or affected related party (i) consents to waste coal fines from normal mining and tion holds coal or domestic iron ore
the disclosure of all relevant information crushing operations and does not include property on the date it converts from a C
requested by the Service in processing fines produced (for example, by crush- corporation to an S corporation (or
the ruling request or in the course of an ing run-of-mine coal) for the purpose of acquires coal or domestic iron ore prop-
examination in order to verify the accu- claiming the credit. erty from a C corporation in a transac-
racy of the representations made and to .02 Section 62(c).—Reimbursement tion to which § 1374(d)(8) applies) and
otherwise analyze or examine the tax is- Arrangements.—Whether amounts during the recognition period recognizes
sues involved in the ruling request, and related to a salary reduction and paid gain or loss on the disposal of the coal or
(ii) waives all claims to protection of under a purported reimbursement or iron ore under a contract to which
bank or commercial secrecy laws in the other expense allowance arrangement § 631(c) applies.
foreign jurisdiction with respect to the will be treated as paid under an .07 Sections 3121, 3306, and 3401.—
information requested by the Service. “accountable plan” in accordance with Definitions; Employment Taxes.—Who
In the event the taxpayer’s or related §1.62–2(c)(2). is the employer of employees of an enti-
party’s consent to disclose relevant in- .03 Section 457.—Deferred Compen-
ty that is disregarded under § 1361(b)(3)
formation or to waive protection of bank sation Plans of State and Local
or § 301.7701–2.
or commercial secrecy is determined by Governments and Tax-Exempt Organiza-
.08 Section 7701.—Definitions.—
the Service to be ineffective or of no tions.—The tax treatment of any § 457 plan
Whether arrangements where taxpayers
force and effect, then the Service may that provides that a loan may be made from
acquire undivided fractional interests in
retroactively rescind any ruling rendered assets held by such plan to any participants
real property constitute separate entities
in reliance on such consent. or beneficiaries under the plan.
for federal tax purposes.
(8) Questions involving the validity .04 Section 1031.–Exceptions.–
of the federal income tax and other taxes Whether an undivided fractional interest SECTION 6. AREAS COVERED BY
set forth in the Code, questions on the in real property is an interest in an enti- AUTOMATIC APPROVAL
authority or jurisdiction of the Service to ty that is not eligible for tax-free PROCEDURES IN WHICH
enforce the Code or collect information, exchange under § 1031(a)(1). RULINGS WILL NOT ORDINARILY
or similar matters. .05 Section 1361.—Definition of a BE ISSUED
(9) A matter involving the federal tax Small Business Corporation.—Whether
consequences of any proposed federal, a state law limited partnership electing .01 Section 442.—Change of Annual
state, local, municipal, or foreign legis- under § 301.7701–3 to be classified as Accounting Period.—All requests for
lation. The Service may provide gener- an association taxable as a corporation change in annual accounting period where
al information in response to an inquiry. has more than one class of stock for pur- the Service has provided an administra-
However, the Office of Division poses of § 1361(b)(1)(D). The Service tive procedure for obtaining a change in
Counsel/Associate Chief Counsel (Tax will treat any request for a ruling on annual accounting period. See Rev.
Exempt and Government Entities) may whether a state law limited partnership Procs. 2000–11, 2000–3 I.R.B. 309 (cer-
issue letter rulings regarding the effect is eligible to elect S corporation status as tain corporations); 87–32, 1987–2 C.B.
of proposed state, local, or municipal a request for a ruling on whether the 396, as modified by § 301.9100–3 (part-
legislation upon an eligible deferred partnership complies with § 1361(b) nership, S corporation, or personal service
compensation plan under § 457(b) pro- (1)(D). corporation seeking a natural business
vided that the letter ruling request relat- .06 Section 1374.—Tax Imposed on year or an ownership taxable year);
ing to the plan complies with the other Certain Built-in Gains.—The tax conse- 68–41, 1968–2 C.B. 943, as modified by
requirements of Rev. Proc. 2001–1. quences under § 1374 in the following Rev. Proc. 81–40, 1981–2 C.B. 604 (trusts
situations: (1) an S corporation holds held by certain fiduciaries needing a
SECTION 5. AREAS UNDER timber property on the date it converts workload spread); and 66–50, 1966–2
EXTENSIVE STUDY IN WHICH from a C corporation to an S corporation C.B. 1260, as modified by Rev. Proc.
RULINGS OR DETERMINATION (or acquires timber property from a C 81–40 (individual seeking a calendar
LETTERS WILL NOT BE ISSUED corporation in a transaction to which year).
UNTIL THE SERVICE RESOLVES § 1374(d)(8) applies) and during the .02 Section 446.—General Rule for
THE ISSUE THROUGH recognition period (a) cuts the timber Methods of Accounting.—Except as oth-
2001–1 I.R.B. 119 January 2, 2001

erwise provided in the listed revenue pro- ers with one or more market discount SECTION 8. EFFECTIVE DATE
cedures, all requests for change in method bonds seeking to make a § 1278(b) elec-
of accounting where the Service has pro- tion or a constant interest rate election); This revenue procedure is effective
vided an administrative procedure for Rev. Proc. 92–29, 1992–1 C.B. 748 (cer- January 15, 2001.
obtaining a change in method of account- tain taxpayers seeking to use an alterna- SECTION 98. PAPERWORK
ing. See Rev. Proc. 99–49, 1999–52 tive method under § 461(h) for including REDUCTION ACT
I.R.B. 725 (accounting method changes common improvement costs in basis); and
described in the Appendix to Rev. Proc. Rev. Proc. 91–51, 1991–2 C.B. 779 (cer- The collections of information con-
99–49 involving §§ 56, 162, 167, 168, tain taxpayers under examination that sell tained in this revenue procedure have
171, 174, 197, 263, 263A, 404, 446, 451, mortgages and retain rights to service the been reviewed and approved by the Of-
454, 455, 461, 467, 471, 472, 475, 585, mortgages). fice of Management and Budget in accor-
1272, 1273, 1278, and 1281, and former .03 Section 461.—General Rule for dance with the Paperwork Reduction Act
§ 168), as modified and amplified by Rev. Taxable Year of Deduction.—All (44 U.S.C. § 3507) under control number
Proc. 2001–10, 2001–2 I.R.B. 272 (quali- requests for making or revoking an elec- 1545-1522.
fying taxpayers with average annual gross tion under § 461 where the Service has An agency may not conduct or sponsor,
receipts of $1 million or less seeking to provided an administrative procedure for and a person is not required to respond to,
change from an accrual method to the making or revoking an election under a collection of information unless the col-
cash method or from an inventory method § 461. See Rev. Proc. 92–29, 1992–1 C.B. lection of information displays a valid
to a method complying with § 1.162–3, 748 (dealing with the use of an alternative control number.
this revenue procedure is effective for tax- method for including in basis the estimat- The collections of information in this
able years ending on or after December ed cost of certain common improvements revenue procedure are in sections
17, 1999, and was released to the public in a real estate development). 3.01(29), 3.02(1) and (3), 4.01(32), and
on December 6, 2000), Rev. Proc. .04 Section 1362.—Election; 4.02(1) and (7)(b).
2000–50, 2000–52 I.R.B. 601 (taxpayers Revocation; Termination.—All situations This information is required to evaluate
seeking to change their treatment of cer- in which an S corporation qualifies for whether the request for a letter ruling or
tain computer software costs), Rev. Proc. automatic late S corporation relief under determination letter is not covered by the
2000–38, 2000–40 I.R.B. 310 (certain Rev. Proc. 97–48, 1997–2 C.B. 521, or for provisions of this revenue procedure. The
taxpayers seeking to change to any of the automatic inadvertent termination or inad- collections of information are required to
three permissible methods of accounting vertent invalid election relief under section obtain a letter ruling or determination let-
for distributor commissions prescribed in 6 of Rev. Proc. 98–55, 1998–2 C.B. 643. ter. The likely respondents are business
Rev. Proc. 2000–38), Rev. Rul. 2000–7, .05 Sections 1502, 1504, and 1552.— or other for-profit institutions.
2000–9 I.R.B. 712 (certain taxpayers Regulations; Definitions; Earnings and The estimated total annual reporting
seeking to change their method of Profits.—All requests for waivers or con- and/or recording burden is 90 hours.
accounting for removal costs to conform sents on consolidated return issues where The estimated annual burden per respon-
with the holding in Rev. Rul. 2000–7), the Service has provided an administra- dent/recordkeeper varies from 15 minutes
Rev. Rul. 2000–4, 2000–4 I.R.B. 331 tive procedure for obtaining waivers or to 3 hours, depending on individual circum-
(certain taxpayers seeking to change their consents on consolidated return issues. stances, with an estimated average burden
method of accounting for ISO 9000 certi- See Rev. Procs. 91–71. 1991–2 C.B. 900 of 2 hours. The estimated number of re-
fication costs to conform with the holding (certain corporations seeking reconsolida- spondents and/or recordkeepers is 45.
in Rev. Rul. 2000–4), and Notice 2000–4, tion within the 5-year period specified in The estimated annual frequency of re-
2000–3 I.R.B. 313 (certain taxpayers § 1504(a)(3)(A)); 90–39, 1990–2 C.B. sponses is on occasion.
seeking to change their method of 365 (certain affiliated groups of corpora- Books or records relating to a collec-
accounting for depreciation of MACRS tions seeking, for earnings and profits tion of information must be retained as
property acquired in a transaction to determinations, to make an election or a long as their contents may become mater-
which § 1031 or § 1033 applies); Rev. change in their method of allocating the ial in the administration of any internal
Proc. 98–58, 1998–2 C.B. 710 (certain group’s consolidated federal income tax revenue law. Generally, tax returns and
taxpayers seeking to change to the install- liability); and 89–56, 1989–2 C.B. 643 tax return information are confidential, as
ment method of accounting under § 453 (certain affiliated groups of corporations required by § 6103.
for alternative minimum tax purposes for seeking to file a consolidated return where
certain deferred payment sales contracts member(s) of the group use a 52-53 week DRAFTING INFORMATION
relating to property used or produced in taxable year). The principal author of this revenue
the trade or business of farming); Rev. procedure is Michael Danbury of the Of-
Proc. 97–43, 1997–2 C.B. 494 (certain SECTION 7. EFFECT ON OTHER
REVENUE PROCEDURES fice of Associate Chief Counsel (Corpo-
taxpayers required to change their method rate). For further information about this
of accounting as a result of making elec- Rev. Procs. 2000–3, 2000–1 I.R.B. revenue procedure, please contact Mr.
tions out of certain exemptions from deal- 103, 2000–46, 2000–44 I.R.B. 438, and Danbury at (202) 622-7978 (not a toll-
er status for purposes of § 475); Rev. Proc. 2000–47, 2000–46 I.R.B. 482 are super- free call).
92–67, 1992–2 C.B. 429 (certain taxpay- seded.
January 2, 2001 120 2001–1 I.R.B.

Rev. Proc. 2001–4

TABLE OF CONTENTS
SECTION 1. WHAT IS p. 126

THE PURPOSE OF THIS
REVENUE PROCEDURE?
SECTION 2. WHAT CHANGES p. 126

HAVE BEEN MADE TO
REV. PROC. 2000–4?
SECTION 3. IN WHAT p. 126 .01 In general

FORM IS GUIDANCE
PROVIDED BY THE .02 Letter ruling
COMMISSIONER, TAX EXEMPT
AND GOVERNMENT ENTITIES .03 Closing agreement
DIVISION?
.04 Determination letter
.05 Opinion letter
.06 Information letter
.07 Revenue ruling
.08 Oral guidance
(1) No oral rulings and no written rulings in response to oral requests
(2) Discussion possible on substantive issues
.09 Nonbank trustee requests

SECTION 4. ON WHAT p. 129
ISSUES MAY TAXPAYERS
REQUEST WRITTEN
GUIDANCE UNDER THIS
PROCEDURE?
SECTION 5. ON WHAT p. 129 .01 Determination letters

ISSUES MUST WRITTEN
GUIDANCE BE REQUESTED .02 Master and prototype plans
UNDER DIFFERENT
PROCEDURES? .03 Closing agreement program for defined contribution plans that purchased
GICs or GACs
.04 Employee Plans Compliance Resolution System
.05 Chief Counsel
.06 Alcohol, tobacco, and firearms taxes
SECTION 6. UNDER WHAT p. 129 .01 In exempt organizations matters

CIRCUMSTANCES DOES
THE TE/GE ISSUE .02 In employee plans matters
LETTER RULINGS?
.03 In qualifications matters
2001–1 I.R.B. 121 January 2, 2001

.04 Request for extension of time for making an election or for other relief
under § 301.9100–1 of the Procedure and Administration Regulations
.05 Issuance of a letter ruling before the issuance of a regulation or other pub-
lished guidance
.06 Issues in prior return
.07 Generally not to business associations or groups
.08 Generally not to foreign governments
.09 Generally not on federal tax consequences of proposed legislation
SECTION 7. UNDER WHAT p. 132 .01 Circumstances under which determination letters are issued
CIRCUMSTANCES DOES
TE/GE ISSUE .02 In general
.03 In employee plans matters
.04 In exempt organizations matters
.05 Circumstances under which determination letters are not issued
.06 Requests involving returns already filed
.07 Attach a copy of determination letter to taxpayer’s return
.08 Review of determination letters
SECTION 8. UNDER p. 134 .01 Ordinarily not in certain areas because of factual nature of the problem
WHAT CIRCUMSTANCES
DOES THE SERVICE HAVE .02 Not on alternative plans or hypothetical situations
DISCRETION TO ISSUE
LETTER RULINGS AND .03 Ordinarily not on part of an integrated transaction
.04 Not on partial terminations of employee plans
.05 Law requires letter ruling
.06 Issues under consideration by PBGC or DOL
.07 Cafeteria plans
.08 Determination letters
.09 Domicile in a foreign jurisdiction
.10 Employee Stock Ownership Plans
SECTION 9. WHAT ARE THE p. 135 .01 In general

FOR REQUESTING LETTER .02 Certain information required in all requests
RULINGS AND
DETERMINATION LETTERS? (1) Complete statement of facts and other information
(2) Copies of all contracts, wills, deeds, agreements, instruments, plan docu-
ments, and other documents
January 2, 2001 122 2001–1 I.R.B.

(3) Analysis of material facts
(4) Statement regarding whether same issue is in an earlier return
(5) Statement regarding whether same or similar issue was previously ruled
on or requested, or is currently pending
(6) Statement of supporting authorities
(7) Statement of contrary authorities
(8) Statement identifying pending legislation
(9) Statement identifying information to be deleted from copy of letter rul-

ing or determination letter for public inspection
(10) Signature by taxpayer or authorized representative
(11) Authorized representatives
(12) Power of attorney and declaration of representative
(13) Penalties of perjury statement
(14) Applicable user fee
(15) Number of copies of request to be submitted
(16) Sample format for a letter ruling request
(17) Checklist for letter ruling requests
.03 Additional information required in certain circumstances
(1) To request separate letter rulings for multiple issues in a single situation
(2) To designate recipient of original or copy of letter ruling or determina-

tion letter
(3) To request expedited handling
(4) To receive a letter ruling or submit a request for a letter ruling by facsim-
ile transmission (fax)
(5) To request a conference
.04 Address to send the request
(1) Requests for letter rulings
(2) Requests for information letters
(3) Requests for determination letters
(4) Summary of Exempt Organizations fees
.05 Pending letter ruling requests
2001–1 I.R.B. 123 January 2, 2001

.06 When to attach letter ruling to return
.07 How to check on status of request
.08 Request may be withdrawn or EP or EO Technical may decline to issue let-

ter ruling
.09 Compliance with Treasury Department Circular No. 230
SECTION 10. WHAT SPECIFIC, p. 147 .01 In general

ADDITIONAL PROCEDURES
APPLY TO CERTAIN .02 Exempt Organizations
REQUESTS?
.03 Employee Plans
SECTION 11. HOW DOES p. 148 .01 In general

TE/GE HANDLE
LETTER RULING REQUESTS? .02 Is not bound by informal opinion expressed
.03 Tells taxpayer if request lacks essential information during initial contact
.04 Requires prompt submission of additional information requested after initial

contact
.05 Near the completion of the ruling process, advises taxpayer of conclusions
and, if the Service will rule adversely, offers the taxpayer the opportunity to
withdraw the letter ruling request
.06 May request draft of proposed letter ruling near the completion of the ruling
process
SECTION 12. HOW ARE p. 149 .01 Schedules a conference if requested by taxpayer
.02 Permits taxpayer one conference of right
.03 Disallows verbatim recording of conferences
.04 Makes tentative recommendations on substantive issues
.05 May offer additional conferences
.06 Requires written confirmation of information presented at conference
.07 May schedule a pre-submission conference

phone
SECTION 13. WHAT EFFECT p. 151 .01 May be relied on subject to limitations
WILL A LETTER RULING
HAVE? .02 Will not apply to another taxpayer
.03 Will be used by TE/GE in examining the taxpayer’s return
.04 May be revoked or modified if found to be in error
.05 Not generally revoked or modified retroactively
.06 Retroactive effect of revocation or modification applied to a particular trans-

action
January 2, 2001 124 2001–1 I.R.B.

.07 Retroactive effect of revocation or modification applied to a continuing ac-
tion or series of actions
.08 May be retroactively revoked or modified when transaction is completed

without reliance on the letter ruling
.09 Taxpayer may request that retroactivity be limited
SECTION 14. WHAT EFFECT p. 154 .01 Has same effect as a letter ruling
LETTER HAVE? .02 Taxpayer may request that retroactive effect of revocation or modification
be limited
(3) Taxpayer steps in exhausting administrative remedies
SECTION 15. UNDER WHAT p. 155 .01 Requests for determination letters
CIRCUMSTANCES ARE
MATTERS REFERRED .02 No-rule areas
BETWEEN DETERMINATIONS
AND TECHNICAL? .03 Requests for letter rulings
SECTION 16. WHAT ARE p. 156 .01 Will be made available to the public
THE GENERAL PROCEDURES
APPLICABLE TO INFORMATION .02 Deletions made under the Freedom of Information Act
LETTERS ISSUED BY
THE HEADQUARTERS OFFICE? .03 Effect of information letters

PROCEDURE ON OTHER
DOCUMENTS?
SECTION 18. p. 157

EFFECTIVE DATE

REDUCTION ACT
INDEX p. 158
APPENDIX A—SAMPLE p. 159

FORMAT FOR A LETTER
RULING REQUEST
APPENDIX B—CHECKLIST p. 161

FOR A LETTER RULING
REQUEST
2001–1 I.R.B. 125 January 2, 2001

SECTION 1. WHAT IS THE This revenue procedure explains how the Internal Revenue Service gives guidance to
PURPOSE OF THIS taxpayers on issues under the jurisdiction of the Commissioner, Tax Exempt and
REVENUE PROCEDURE? Government Entities Division. It explains the kinds of guidance and the manner in which
guidance is requested by taxpayers and provided by the Service. A sample format of a
request for a letter ruling is provided in Appendix A.
SECTION 2. WHAT CHANGES .01 This revenue procedure is a general update of Rev. Proc. 2000–4, 2000–1 I.R.B. 115,
HAVE BEEN MADE TO which contains the Service’s general procedures for employee plans and exempt organiza-
REV. PROC. 2000–4? tions letter ruling requests. Most of the changes to Rev. Proc. 2000–4 involve minor revi-
sions, such as updating citations to other revenue procedures.
.02 The procedure has been revised to reflect the reorganization of the Service and the
creation of the new Tax Exempt and Government Entities Division (TE/GE). Throughout
the procedure, titles and offices have been changed to reflect the realignment of responsi-
bilities formerly under the Assistant Commissioner (Employee Plans and Exempt
Organizations) to the Commissioner, TE/GE.
.03 Sections 3.09 and 9.04 have been updated to reflect the offices and addressess to
send the requests.
.04 Section 9.03(3) is amended to clarify the circumstances under which expedited han-
dling of letter rulings and determination letters will be granted.
.05 Section 12.07 is amended to clarify that pre-submission conferences are held only if
the identity of the taxpayer is provided to the headquarters office.
SECTION 3. IN WHAT FORM

IS GUIDANCE PROVIDED BY
THE COMMISSIONER, TAX
EXEMPT AND GOVERNMENT
ENTITIES DIVISION?
In general .01 The Service provides guidance in the form of letter rulings, closing agreements,
determination letters, opinion letters, information letters, revenue rulings, and oral advice.
Letter ruling .02 A “letter ruling” is a written statement issued to a taxpayer by the Service’s
Employee Plans Technical or Exempt Organizations Technical office that interprets and
applies the tax laws or any nontax laws applicable to employee benefit plans and exempt
organizations to the taxpayer’s specific set of facts. Once issued, a letter ruling may be
revoked or modified for any number of reasons, as explained in section 13 of this revenue
procedure, unless it is accompanied by a “closing agreement.”
Closing agreement .03 A closing agreement is a final agreement between the Service and a taxpayer on a
specific issue or liability. It is entered into under the authority in § 7121 and is final unless
fraud, malfeasance, or misrepresentation of a material fact can be shown.
A closing agreement prepared in an office under the responsibility of the Commissioner,

TE/GE, may be based on a ruling that has been signed by the Commissioner, TE/GE, or
the Commissioner, TE/GE’s, delegate that says that a closing agreement will be entered
into on the basis of the ruling letter.
A closing agreement may be entered into when it is advantageous to have the matter per-
manently and conclusively closed, or when a taxpayer can show that there are good rea-
sons for an agreement and that making the agreement will not prejudice the interests of the
Government. In appropriate cases, taxpayers may be asked to enter into a closing agree-
ment as a condition to the issuance of a letter ruling.
January 2, 2001 126 2001–1 I.R.B.

If, in a single case, a closing agreement is requested for each person in a class of tax-
payers, separate agreements are entered into only if the class consists of 25 or fewer tax-
payers. However, if the issue and holding are identical for the class and there are more
than 25 taxpayers in the class, a “mass closing agreement” will be entered into with the
taxpayer who is authorized by the others to represent the class.
In appropriate cases, a closing agreement may be made with sponsors of master and pro-
totype plans and sponsors of regional prototype plans.
Rev. Proc. 2000–16, 2000–6 I.R.B. 553, establishes a voluntary closing agreement pro-
gram for employee plans matters. The revenue procedure contains a formula for deter-
mining monetary sanctions and limits the sanction for employers who voluntarily enter the
program.
Determination letter .04 A “determination letter” is a written statement issued by a Manager, EP

Determinations, or a Manager, EO Determinations that applies the principles and prece-
dents previously announced to a specific set of facts. It is issued only when a determina-
tion can be made based on clearly established rules in the statute, a tax treaty, or the reg-
ulations, or based on a conclusion in a revenue ruling, opinion, or court decision published
in the Internal Revenue Bulletin that specifically answers the questions presented.
The Manager, EP Determinations, issues determination letters involving §§ 401, 403(a),

409, and 4975(e)(7) as provided in Rev. Proc. 2001–6, page 194, this Bulletin.
Opinion letter .05 An “opinion letter” is a written statement issued by the Director, Employee Plans
Rulings and Agreements to a sponsor as to the acceptability (for purposes of §§ 401 and
501(a)) of the form of a master or prototype plan and any related trust or custodial account
under §§ 401, 403(a), and 501(a), or as to the conformance of a prototype trust, custodial
account, or individual annuity with the requirements of § 408(a), (b), or (k), as applicable.
See Rev. Proc. 2000–20, 2000–6 I.R.B. 553 as modified by Rev. Proc. 2000–27, 2000–26
I.R.B. 1272. See also Rev. Proc. 91–44, 1991–2 C.B. 733, and Rev. Proc. 92–38, 1992–1
C.B. 859.
Information letter .06 An “information letter” is a statement issued either by the Director, Employee Plans
Rulings and Agreements or the Director, Exempt Organizations Rulings and Agreements.
It calls attention to a well-established interpretation or principle of tax law (including a tax
treaty) without applying it to a specific set of facts. To the extent resources permit, an
information letter may be issued if the taxpayer’s inquiry indicates a need for general
information or if the taxpayer’s request does not meet the requirements of this revenue pro-
cedure and the Service thinks general information will help the taxpayer. The taxpayer
should provide a daytime telephone number with the taxpayer’s request for an information
letter. Requests for information letters should be sent to the address stated in section
9.04(2) of this revenue procedure. The requirements of section 9.02 of this revenue pro-
cedure are not applicable to information letters. An information letter is advisory only and
has no binding effect on the Service.
Revenue ruling .07 A “revenue ruling” is an interpretation by the Service that has been published in the
Internal Revenue Bulletin. It is the conclusion of the Service on how the law is applied to
a specific set of facts. Revenue rulings are published for the information and guidance of
taxpayers, Service personnel, and other interested parties.
Because each revenue ruling represents the conclusion of the Service regarding the
application of law to the entire statement of facts involved, taxpayers, Service personnel,
and other concerned parties are cautioned against reaching the same conclusion in other
cases unless the facts and circumstances are substantially the same. They should consid-
er the effect of subsequent legislation, regulations, court decisions, revenue rulings,
notices, and announcements. See Rev. Proc. 89–14, 1989–1 C.B. 814, which states the
2001–1 I.R.B. 127 January 2, 2001

objectives of and standards for the publication of revenue rulings and revenue procedures
Oral guidance .08
(1) No oral rulings, and no written rulings in response to oral requests.
The Service does not orally issue letter rulings or determination letters, nor does it issue
letter rulings or determination letters in response to oral requests from taxpayers.
However, Service employees ordinarily will discuss with taxpayers or their representatives
inquiries regarding whether the Service will rule on particular issues and questions relat-
ing to procedural matters about submitting requests for letter rulings, determination letters,
and requests for recognition of exempt status for a particular organization.
(2) Discussion possible on substantive issues.
At the discretion of the Service, and as time permits, substantive issues may also be dis-
cussed. However, such a discussion will not be binding on the Service, and cannot be
relied on as a basis for obtaining retroactive relief under the provisions of § 7805(b).
Substantive tax issues involving the taxpayer that are under examination, in appeals, or in
litigation will not be discussed by Service employees not directly involved in the examination,
appeal, or litigation of the issues unless the discussion is coordinated with those Service
employees who are directly involved in the examination, appeal, or litigation of the issues.
The taxpayer or the taxpayer’s representative ordinarily will be asked whether the oral request
for guidance or information relates to a matter pending before another office of the Service.
If a tax issue is not under examination, in appeals, or in litigation, the tax issue may be
discussed even though the issue is affected by a nontax issue pending in litigation.
A taxpayer may seek oral technical guidance from a taxpayer service representative in
TE/GE Customer Account Services when preparing a return or report. Oral guidance is
advisory only, and the Service is not bound to recognize it, for example, in the examina-
tion of the taxpayer’s return.
The Service does not respond to letters seeking to confirm the substance of oral discussions,
and the absence of a response to such a letter is not confirmation of the substance of the letter.
Nonbank trustee requests .09 In order to receive approval to act as a nonbank custodian of plans qualified under
§ 401(a) or accounts described in § 403(b)(7), and as a nonbank trustee or nonbank custo-
dian for individual retirement arrangements (IRAs) established under § 408(a), (b), or (h),
or for an educational IRA established under § 530 or a medical savings account established
under § 220, a written application must be filed that demonstrates how the applicant com-
plies with the requirements of § 1.408–2(e)(2) through (5) of the Income Tax Regulations.
The Service must have clear and convincing proof in its files that the requirements of
the regulations are met. If there is a requirement that the applicant feels is not applicable,
the application must provide clear and convincing proof that such requirement is not ger-
mane to the manner in which the applicant will administer any trust. See § 1.408–2(e)(6).
The completed application should be sent to:

Commissioner, TE/GE
Attention: T:EP:RA
P.O. Box 27063
McPherson Station
Washington, DC 20038
January 2, 2001 128 2001–1 I.R.B.

Section 6.01(4) of Rev. Proc. 2001–8, page 239, this Bulletin, imposes a user’s fee for
anyone applying for approval to become a nonbank trustee or custodian.
SECTION 4. ON WHAT Taxpayers may request letter rulings, information letters and closing agreements on
ISSUES MAY TAXPAYERS issues within the jurisdiction of the Commissioner, Tax Exempt and Government Entities
REQUEST WRITTEN Division, under this revenue procedure. The Service issues letter rulings to answer written
GUIDANCE UNDER THIS inquiries of individuals and organizations about their status for tax purposes and the tax
PROCEDURE? effects of their acts or transactions when appropriate in the interest of sound tax administration.
Taxpayers also may request determination letters that relate to Code sections under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. See sec-
tions 7.02, 7.03, and 7.04 below and Rev. Proc. 2001–6, this Bulletin.
SECTION 5. ON WHAT ISSUES

BE REQUESTED UNDER
Determination letters .01 The procedures for obtaining determination letters involving §§ 401, 403(a), 409,
and 4975(e)(7), and the status for exemption of any related trusts or custodial accounts
under § 501(a) are contained in Rev. Proc. 2001–6, this Bulletin.
Master and prototype plans .02 The procedures for obtaining opinion letters for master and prototype plans and any
related trusts or custodial accounts under §§ 401(a), 403(a) and 501(a) are contained in
Rev. Proc. 2000–20, as modified by Rev. Proc. 2000–27. The procedures for obtaining
opinion letters for prototype trusts, custodial accounts or annuities under § 408(a) or (b)
are contained in Rev. Proc. 87–50, as modified by Rev. Proc. 92–38. The procedures for
obtaining opinion letters for prototype trusts under § 408(k) are contained in Rev. Proc.
87–50, as modified by Rev. Proc. 91–44 (as modified by Rev. Proc. 2001–8). The proce-
dures for obtaining opinion letters for SIMPLE IRAs under § 408(p) are contained in Rev.
Proc. 97–29, 1997–1 C.B. 698. The procedures for obtaining opinion letters for ROTH
IRAs under § 408A are contained in Rev. Proc. 98–59, 1998–2 C.B. 727.
Closing agreement program for .03 Rev. Proc. 95–52, 1995–1 C.B. 439, restates and extends for an indefinite period the
defined contribution plans that closing agreement program for defined contribution plans that purchased guaranteed
purchased GICs or GACs investment contracts (GICs) or group annuity contracts (GACs) from troubled life insur-
ance companies .
Employee Plans Compliance .04 The procedures for obtaining corrections of Qualification or § 403(b) Failures
Resolution System under the Employee Plans Compliance Resolution System (EPCRS) are contained in Rev.
Proc. 2000–16, 2000–6 I.R.B. 518.
Chief Counsel .05 The procedures for obtaining rulings, closing agreements, and information letters on
issues within the jurisdiction of the Chief Counsel are contained in Rev. Proc. 2001–1,
page 1, this Bulletin, including tax issues involving interpreting or applying the federal tax
laws and income tax treaties relating to international transactions.
Alcohol, tobacco, .06 The procedures for obtaining letter rulings, etc., that apply to federal alcohol, tobac-
and firearms taxes co, and firearms taxes under subtitle E of the Internal Revenue Code are under the juris-
diction of the Bureau of Alcohol, Tobacco and Firearms.

CIRCUMSTANCES DOES TE/GE
In exempt organizations matters .01 In exempt organizations matters, the Exempt Organizations Technical Office issues
letter rulings on proposed transactions and on completed transactions if the request is sub-
2001–1 I.R.B. 129 January 2, 2001

mitted before the return is filed for the year in which the transaction that is the subject of
the request was completed. Exempt Organizations Technical issues letter rulings involv-
ing:
(1) Organizations exempt from tax under § 501, including private foundations;
(2) Organizations described in § 170(b)(1)(A) (except clause (v));
(3) Political organizations described in § 527;
(4) Qualified state tuition programs described in § 529;
(5) Trusts described in § 4947(a);
(6) Welfare benefit plans described in § 4976; and
(7) Other matters including issues under §§ 501 through 514, 4911, 4912, 4940 through
4948, 4955, 4958, 6033, 6104, 6113, and 6115.
In employee plans matters .02 In employee plans matters, the Employee Plans Technical Office issues letter rul-
ings on proposed transactions and on completed transactions either before or after the
return is filed. Employee Plans Technical issues letter rulings involving:
(1) §§ 72, 101(d), 219, 381(c)(11), 402, 403(b), 404, 408, 408A, 412, 414(d), 414(e),
419, 419A, 511 through 514, 4971, 4972, 4973, 4974, 4978, 4979, and 4980;
(2) Waiver of the minimum funding standard (See Rev. Proc. 94–41, 1994–1 C.B. 711),
and changes in funding methods and actuarial assumptions under § 412(c)(5);
(3) Waiver of the liquidity shortfall (as that term is defined in § 412(m)(5)) excise tax
under § 4971(f)(4) as added by § 1464 of the Small Business Job Protection Act of 1996;
(4) Whether a plan amendment is reasonable and provides for only de minimis increas-
es in plan liabilities in accordance with §§ 401(a)(33) and 412(f)(2)(A) of the Code (See
Rev. Proc. 79–62, 1979–2 C.B. 576);
(5) A change in the plan year of an employee retirement plan and the trust year of a tax-
exempt employees’ trust (See Rev. Proc. 87–27, 1987–1 C.B. 769);
(6) The tax consequences of prohibited transactions under §§ 503 and 4975;
(7) Whether individual retirement accounts established by employers or associations of

employees meet the requirements of § 408(c). (See Rev. Proc. 87–50, as modified by Rev.
Proc. 91–44 (as modified by Rev. Proc. 2001–8) and Rev. Proc. 92–38);
(8) With respect to employee stock ownership plans and tax credit employee stock own-
ership plans, §§ 409(l), 409(m), and 4975(d)(3). Other subsections of §§ 409 and
4975(e)(7) involve qualification issues within the jurisdiction of EP Determinations.
(9) Where the Commissioner, Tax Exempt and Government Entities Division has
authority to grant extensions of certain periods of time within which the taxpayer must per-
form certain transactions (for example, the 90–day period for reinvesting in employer
securities under § 1.46–8(e)(10) of the regulations), the taxpayer’s request for an extension
of such time period must be postmarked (or received, if hand delivered to the headquar-
ters office) no later than the expiration of the original time period. Thus, for example, a
request for an extension of the 90–day period under § 1.46–8(e)(10) must be made before
the expiration of this period. However, see section 6.04 below with respect to elections
under § 301.9100–1 of the Procedure and Administration Regulations.
January 2, 2001 130 2001–1 I.R.B.

In qualifications matters .03 The Employee Plans Technical office ordinarily will not issue letter rulings on mat-
ters involving a plan’s qualified status under §§ 401 through 420 and § 4975(e)(7). These
matters are generally handled by the Employee Plans Determinations program as provid-
ed in Rev. Proc. 2001–6, this Bulletin, Rev. Proc. 93–10 and Rev. Proc. 93–12. Although
the Employee Plans Technical office will not ordinarily issue rulings on matters involving
plan qualification, a ruling may be issued where, (1) the taxpayer has demonstrated to the
Service’s satisfaction that the qualification issue involved is unique and requires immedi-
ate guidance, (2) as a practical matter, it is not likely that such issue will be addressed
through the determination letter process, and (3) the Service determines that it is in the
interest of good tax administration to provide guidance to the taxpayer with respect to such
qualification issue.
Request for extension of time .04 Employee Plans Technical or Exempt Organizations Technical will consider a
for making an election or for request for an extension of time for making an election or other application for relief under
other relief under § 301.9100–1 § 301.9100–1 of the Procedure and Administration Regulations even if submitted after the
of the Procedure and return covering the issue presented in the § 301.9100–1 request has been filed and even if
Administration Regulations submitted after an examination of the return has begun or after the issues in the return are
being considered by an appeals office or a federal court. In such a case, EP or EO
Technical will notify the Director, EP or EO Examinations.
Except for those requests pertaining to applications for recognition of exemption,

§ 301.9100–1 requests, even those submitted after the examination of the taxpayer’s
return has begun, are letter ruling requests and therefore should be submitted pursuant to
this revenue procedure, and require payment of the applicable user fee, referenced in sec-
tion 9.02(14) of this revenue procedure. In addition, the taxpayer must include the infor-
mation required by § 301.9100–3(e).
However, an election made pursuant to § 301.9100–2 is not a letter ruling and does not
require payment of any user fee. See § 301.9100–2(d). Such an election pertains to an
automatic extension of time under § 301.9100–1.
Issuance of a letter ruling before .05 Unless the issue is covered by section 8 of this procedure, a letter ruling may be
the issuance of a regulation or issued before the issuance of a temporary or final regulation or other published guidance
other published guidance that interprets the provisions of any act under the following conditions:
(1) Answer is clear or is reasonably certain. If the letter ruling request presents an issue
for which the answer seems clear by applying the statute to the facts or for which the answer
seems reasonably certain but not entirely free from doubt, a letter ruling will be issued.
(2) Answer is not reasonably certain. The Service will consider all letter ruling
requests and use its best efforts to issue a letter ruling even if the answer does not seem
reasonably certain where the issuance of a letter ruling is in the best interest of tax admin-
istration.
(3) Issue cannot be readily resolved before a regulation or any other published
guidance is issued. A letter ruling will not be issued if the letter ruling request presents
an issue that cannot be readily resolved before a regulation or any other published guid-
ance is issued.
Issues in prior return .06 The Service ordinarily does not issue rulings if, at the time the ruling is requested,
the identical issue is involved in the taxpayer’s return for an earlier period, and that issue—
(1) is being examined by the Director, EP or EO Examinations.
(2) is being considered by an appeals office,
(3) is pending in litigation in a case involving the taxpayer or related taxpayer, or
2001–1 I.R.B. 131 January 2, 2001

(4) has been examined by the Director, EP or EO Examinations or considered by an
appeals office, and the statutory period of limitation has not expired for either assessment
or filing a claim for a refund or a closing agreement covering the issue of liability has not
been entered into by the Director, EP or EO Rulings and Agreements or by an appeals
office.
If a return dealing with an issue for a particular year is filed while a request for a ruling
on that issue is pending, EP or EO Technical will issue the ruling unless it is notified by
the taxpayer that an examination of that issue or the identical issue on an earlier year’s
return has been started by the Director, EP or EO Examinations. See section 9.05.
However, even if an examination has begun, EP or EO Technical ordinarily will issue the
letter ruling if the Director, EP or EO Examinations agrees, by memorandum, to permit the
ruling to be issued.
Generally not to business .07 EP or EO Technical does not issue letter rulings to business, trade, or industrial asso-
associations or groups ciations or to similar groups concerning the application of the tax laws to members of the
group. But groups and associations may submit suggestions of generic issues that would
be appropriately addressed in revenue rulings. See Rev. Proc. 89–14, which states objec-
tives of, and standards for, the publication of revenue rulings and revenue procedures in
the Internal Revenue Bulletin.
EP or EO Technical, however, may issue letter rulings to groups or associations on their

own tax status or liability if the request meets the requirements of this revenue procedure.
Generally not to foreign .08 EP or EO Technical does not issue letter rulings to foreign governments or their
governments political subdivisions about the U.S. tax effects of their laws. However, EP or EO
Technical may issue letter rulings to foreign governments or their political subdivisions
on their own tax status or liability under U.S. law if the request meets the requirements of
Generally not on federal tax .09 EP or EO Technical does not issue letter rulings on a matter involving the federal
consequences of proposed tax consequences of any proposed federal, state, local, municipal, or foreign legislation.
legislation EP or EO Technical, however, may provide general information in response to an inquiry.

CIRCUMSTANCES DOES
EP OR EO
DETERMINATIONS ISSUE
Circumstances under which .01 Employee Plans or Exempt Organizations Determinations issues determination let-
determination letters are issued ters only if the question presented is specifically answered by a statute, tax treaty, or reg-
ulation, or by a conclusion stated in a revenue ruling, opinion, or court decision published
In general .02 In employee plans and exempt organizations matters, the EP or EO Determinations
office issues determination letters in response to taxpayers’ written requests on completed
transactions. However, see section 13.08 of this revenue procedure. A determination let-
ter usually is not issued for a question concerning a return to be filed by the taxpayer if the
same question is involved in a return under examination.
In situations involving continuing transactions, such as whether an ongoing activity is an

unrelated trade or business, EP or EO Technical would issue a ruling covering future tax
periods and periods for which a return had not yet been filed.
EP or EO Determinations does not issue determination letters on the tax consequences

of proposed transactions, except as provided in sections 7.03 and 7.04 below.
January 2, 2001 132 2001–1 I.R.B.

In employee plans matters .03 In employee plans matters, the Employee Plans Determinations office issues deter-
mination letters on the qualified status of employee plans under §§ 401, 403(a), 409 and
4975(e)(7), and the exempt status of any related trust under § 501. See Rev. Proc. 2001–6,
this Bulletin, Rev. Proc. 93–10 and Rev. Proc. 93–12.
In exempt organizations matters .04 In exempt organizations matters, the Exempt Organizations Determinations office
issues determination letters involving:
(1) Qualification for exempt status of organizations described in §§ 501 and 521 to the
extent provided in Rev. Proc. 90–27, 1990–1 C.B. 514, as modified by Rev. Proc. 2001–8;
(2) Classification of private foundation status as provided in Rev. Proc. 76–34, 1976–2
C.B. 656;
(3) Recognition of unusual grants to certain organizations under §§ 170(b)(1)(A)(vi)

and 509(a)(2);
(4) Requests for relief under § 301.9100–1 of the Procedure and Administration
Regulations in connection with applications for recognition of exemption;
(5) Advance approval under § 4945 of organizations’ grant making procedures whose
determination letter requests or applications disclose (or who have otherwise properly dis-
closed) a grant program or plans to conduct such a program. If questions arise regarding
grant-making procedures that cannot be resolved on the basis of law, regulations, a clear-
ly applicable revenue ruling, or other published precedent, EO Determinations will for-
ward the matter to EO Technical for technical advice;
(6) Whether certain organizations are exempt from filing annual information returns
under § 6033 as provided in Rev. Procs. 83–23, 1983–1 C.B. 687, 86–23, 1986–1 C.B.
564, and 95–48, 1995–2 C.B. 418;
(7) Whether certain organizations qualify as exempt operating foundations described in

§ 4940(d); and
(8) Advance approval of voter registration activities described in § 4945(f).
Circumstances under which .05 EP or EO Determinations will not issue a determination letter in response to any
determination letters request if—
are not issued
(1) it appears that the taxpayer has directed a similar inquiry to EP or EO Technical;
(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case
in litigation or before an appeals office;
(3) the determination letter is requested by an industry, trade association, or similar

group on behalf of individual taxpayers within the group (other than subordinate organi-
zations covered by a group exemption letter); or
(4) the request involves an industry-wide problem.
Under no circumstances will EP or EO Determinations issue a determination letter

unless it is clearly shown that the request concerns a return that has been filed or is
required to be filed.
Requests involving returns .06 A request received by the Service on a question concerning a return that is under
already filed examination, will be, in general, considered in connection with the examination of the
2001–1 I.R.B. 133 January 2, 2001

return. If a response is made to the request before the return is examined, it will be con-
sidered a tentative finding in any later examination of that return.
Attach a copy of determination .07 A taxpayer who, before filing a return, receives a determination letter about any
letter to taxpayer’s return transaction that has been consummated and that is relevant to the return being filed should
attach a copy of the determination letter to the return when it is filed.
Review of determination letters .08 Determination letters issued under sections 7.02 through 7.04 of this revenue pro-
cedure are not reviewed by EP or EO Technical before they are issued. If a taxpayer
believes that a determination letter of this type is in error, the taxpayer may ask EP or EO
Determinations to reconsider the matter or to request technical advice from EP or EO
Technical as explained in Rev. Proc. 2001–5, page 164, this Bulletin.
(1) In employee plans matters, the procedures for review of determination letters relat-
ing to the qualification of employee plans involving §§ 401 and 403(a) are provided in
Rev. Proc. 2001–6, Rev. Proc. 93–10 and Rev. Proc. 93–12.
(2) In exempt organizations matters, the procedures for the review of determination let-
ters relating to the exemption from federal income tax of certain organizations under
§§ 501 and 521 are provided in Rev. Proc. 90–27, as modified by Rev. Proc. 2001–8.

CIRCUMSTANCES DOES
THE SERVICE HAVE
DISCRETION TO ISSUE
LETTER RULINGS AND
Ordinarily not in certain areas .01 The Service ordinarily will not issue a letter ruling or determination letter in certain
because of factual nature areas because of the factual nature of the problem involved or because of other reasons.
of the problem The Service may decline to issue a letter ruling or a determination letter when appropriate
in the interest of sound tax administration or on other grounds whenever warranted by the
facts or circumstances of a particular case.
Instead of issuing a letter ruling or determination letter, the Service may, when it is con-
sidered appropriate and in the best interests of the Service, issue an information letter call-
ing attention to well-established principles of tax law.
Not on alternative plans or .02 A letter ruling or a determination letter will not be issued on alternative plans of pro-
hypothetical situations posed transactions or on hypothetical situations.
Ordinarily not on part of an .03 The Service ordinarily will not issue a letter ruling on only part of an integrated
integrated transaction transaction. If, however, a part of a transaction falls under a no-rule area, a letter ruling
on other parts of the transaction may be issued. Before preparing the letter ruling request,
a taxpayer should call the office having jurisdiction for the matters on which the taxpayer
is seeking a letter ruling to discuss whether the Service will issue a letter ruling on part of
the transaction.
Not on partial terminations .04 The Service will not issue a letter ruling on the partial termination of an employee
of employee plans plan. Determination letters involving the partial termination of an employee plan may be
issued.
Law requires ruling letter .05 The Service will issue rulings on prospective or future transactions if the law or reg-
ulations require a determination of the effect of a proposed transaction for tax purposes.
Issues under consideration .06 A letter ruling or determination letter relating to an issue that is being considered by
by PBGC or DOL the Pension Benefit Guaranty Corporation (PBGC) or the Department of Labor (DOL),
and involves the same taxpayer, shall be issued at the discretion of the Service.
January 2, 2001 134 2001–1 I.R.B.

Cafeteria plans .07 The Service does not issue letter rulings or determination letters on whether a cafe-
teria plan satisfies the requirements of § 125. See also Rev. Proc. 2001–3, page 111, this
Bulletin, for areas under the jurisdiction of the Division Counsel/ Associate Chief Counsel
(Tax Exempt and Government Entities) involving cafeteria plans in which advance rulings
or determination letters will not be issued.
Determination letters .08 See section 3.02 of Rev. Proc. 2001–6 for employee plans matters on which deter-
mination letters will not be issued.
Domicile in a foreign jurisdiction .09
(1) The Service is ordinarily unwilling to rule in situations where a taxpayer or a relat-
ed party is domiciled or organized in a foreign jurisdiction with which the United States
does not have an effective mechanism for obtaining tax information with respect to civil
tax examinations and criminal investigations, which would preclude the Service from
obtaining information located in such jurisdiction that is relevant to the analysis or exam-
ination of the tax issues involved in the ruling request.
(2) The provisions of subsection 8.09(1) above shall not apply if the taxpayer or affect-
ed related party (a) consents to the disclosure of all relevant information requested by the
Service in processing the ruling request or in the course of an examination to verify the
accuracy of the representations made and to otherwise analyze or examine the tax issues
involved in the ruling request, and (b) waives all claims to protection of bank or commer-
cial secrecy laws in the foreign jurisdiction with respect to the information requested by
the Service. In the event the taxpayer’s or related party’s consent to disclose relevant
information or to waive protection of bank or commercial secrecy is determined by the
Service to be ineffective or of no force and effect, then the Service may retroactively
rescind any ruling rendered in reliance on such consent.
Employee Stock Ownership Plans .10 The Service does not issue a letter ruling on whether or not the renewal, extension
or refinancing of an exempt loan satisfies the requirements of § 4975(d)(3) of the Internal
Revenue Code.

RULINGS AND
In general .01 This section explains the general instructions for requesting letter rulings and deter-
mination letters on all matters. Requests for letter rulings and determination letters require
the payment of the applicable user fee discussed in section 9.02(14) of this revenue pro-
cedure.
Specific and additional instructions also apply to requests for letter rulings and determi-
nation letters on certain matters. Those matters are listed in section 10 of this revenue pro-
cedure followed by a reference (usually to another revenue procedure) where more infor-
mation can be obtained.
Certain information required .02

in all requests
Facts (1) Complete statement of facts and other information. Each request for a letter rul-
ing or a determination letter must contain a complete statement of all facts relating to the
transaction. These facts include—
(a) names, addresses, telephone numbers, and taxpayer identification numbers of all
interested parties. (The term “all interested parties” does not mean all shareholders of a
2001–1 I.R.B. 135 January 2, 2001

widely held corporation requesting a letter ruling relating to a reorganization, or all
employees where a large number may be involved.);
(b) a complete statement of the business reasons for the transaction; and
(c) a detailed description of the transaction.
The Service will usually not rule on only one step of a larger integrated transaction. See
section 8.03 of this revenue procedure. However, if such a letter ruling is requested, the
facts, circumstances, true copies of relevant documents, etc., relating to the entire transac-
tion must be submitted.
Documents (2) Copies of all contracts, wills, deeds, agreements, instruments, plan documents,
and other documents. True copies of all contracts, wills, deeds, agreements, instruments,
plan documents, trust documents, proposed disclaimers, and other documents pertinent to
the transaction must be submitted with the request.
Each document, other than the request, should be labelled alphabetically and attached to
the request in alphabetical order. Original documents, such as contracts, wills, etc., should
not be submitted because they become part of the Service’s file and will not be returned.
Analysis of material facts (3) Analysis of material facts. All material facts in documents must be included rather
than merely incorporated by reference, in the taxpayer’s initial request or in supplemental
letters. These facts must be accompanied by an analysis of their bearing on the issue or
issues, specifying the provisions that apply.
Same issue in an earlier return (4) Statement regarding whether same issue is in an earlier return. The request
must state whether, to the best of the knowledge of both the taxpayer and the taxpayer’s
representatives, the same issue is in an earlier return of the taxpayer (or in a return for any
year of a related taxpayer within the meaning of § 267, or of a member of an affiliated
group of which the taxpayer is also a member within the meaning of § 1504).
If the statement is affirmative, it must specify whether the issue—
(a) is being examined by the Service;
(b) has been examined and if so, whether or not the statutory period of limitations has
expired for either assessing tax or filing a claim for refund or credit of tax;
(c) has been examined and if so, whether or not a closing agreement covering the issue
or liability has been entered into by the Service;
(d) is being considered by an appeals office in connection with a return from an earlier
period;
(e) has been considered by an appeals office in connection with a return from an earli-
er period and if so, whether or not the statutory period of limitations has expired for either
assessing tax or filing a claim for refund or credit of tax;
(f) has been considered by an appeals office in connection with a return from an earli-
er period and whether or not a closing agreement covering the issue or liability has been
entered into by an appeals office;
(g) is pending in litigation in a case involving the taxpayer or a related taxpayer; or
(h) in employee plans matters, is being considered by the Pension Benefit Guaranty
Corporation or the Department of Labor.
January 2, 2001 136 2001–1 I.R.B.

Same or similar issue previously (5) Statement regarding whether same or similar issue was previously ruled on or
submitted or currently pending requested, or is currently pending. The request must also state whether, to the best of
the knowledge of both the taxpayer and the taxpayer’s representatives—
(a) the Service previously ruled on the same or similar issue for the taxpayer (or a relat-
ed taxpayer within the meaning of § 267, or a member of an affiliated group of which the
taxpayer is also a member within the meaning of § 1504) or a predecessor;
(b) the taxpayer, a related taxpayer, a predecessor, or any representatives previously

submitted the same or similar issue to the Service but withdrew the request before a letter
ruling or determination letter was issued;
(c) the taxpayer, a related taxpayer, or a predecessor previously submitted a request

involving the same or a similar issue that is currently pending with the Service; or
(d) at the same time as this request, the taxpayer or a related taxpayer is presently sub-
mitting another request involving the same or a similar issue to the Service.
If the statement is affirmative for (a), (b), (c), or (d) of this section 9.02(5), the statement
must give the date the request was submitted, the date the request was withdrawn or ruled
on, if applicable, and other details of the Service’s consideration of the issue.
Statement of authorities (6) Statement of supporting authorities. If the taxpayer advocates a particular con-
supporting taxpayer’s views clusion, an explanation of the grounds for that conclusion and the relevant authorities to
support it must also be included. Even if not advocating a particular tax treatment of a pro-
posed transaction, the taxpayer must still furnish views on the tax results of the proposed
transaction and a statement of relevant authorities to support those views.
In all events, the request must include a statement of whether the law in connection with the
request is uncertain and whether the issue is adequately addressed by relevant authorities.
Statement of authorities (7) Statement of contrary authorities. The taxpayer is also encouraged to inform the
contrary to taxpayer’s views Service about, and discuss the implications of, any authority believed to be contrary to the
position advanced, such as legislation (or pending legislation), tax treaties, court decisions,
regulations, revenue rulings, revenue procedures, notices or announcements. If the tax-
payer determines that there are no contrary authorities, a statement in the request to this
effect would be helpful. If the taxpayer does not furnish either contrary authorities or a
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 rul-
ing or determination letter.
Identifying and discussing contrary authorities will generally enable Service personnel
to understand the issue and relevant authorities more quickly. When Service personnel
receive the request, they will have before them the taxpayer’s thinking on the effect and
applicability of contrary authorities. This information should make research easier and
lead to earlier action by the Service. If the taxpayer does not disclose and distinguish sig-
nificant contrary authorities, the Service may need to request additional information,
which will delay action on the request.
Statement identifying pending (8) Statement identifying pending legislation. At the time of filing the request, the
legislation taxpayer must identify any pending legislation that may affect the proposed transaction. In
addition, if applicable legislation is introduced after the request is filed but before a letter
ruling or determination letter is issued, the taxpayer must notify the Service.
Deletions statement required (9) Statement identifying information to be deleted from copy of letter ruling or
by § 6110 determination letter for public inspection. The text of certain letter rulings and deter-
2001–1 I.R.B. 137 January 2, 2001

mination letters is open to public inspection under § 6110. The Service makes deletions
from the text before it is made available for inspection. To help the Service make the dele-
tions required by § 6110(c), a request for a letter ruling or determination letter must be
accompanied by a statement indicating the deletions desired (“deletions statement”). If the
deletions statement is not submitted with the request, a Service representative will tell the
taxpayer that the request will be closed if the Service does not receive the deletions state-
ment within 30 calendar days. See section 11.03 of this revenue procedure.
(a) Format of deletions statement. A taxpayer who wants only names, addresses, and
identifying numbers to be deleted should state this in the deletions statement. If the tax-
payer wants more information deleted, the deletions statement must be accompanied by a
copy of the request and supporting documents on which the taxpayer should bracket the
material to be deleted. The deletions statement must indicate the statutory basis under
§ 6110(c) for each proposed deletion.
If the taxpayer decides to ask for additional deletions before the letter ruling or deter-
mination letter is issued, additional deletions statements may be submitted.
(b) Location of deletions statement. The deletions statement must not appear in the
request, but instead must be made in a separate document and placed on top of the request
for a letter ruling or determination letter.
(c) Signature. The deletions statement must be signed and dated by the taxpayer or the
taxpayer’s authorized representative. A stamped signature is not permitted.
(d) Additional information. The taxpayer should follow the same procedures above
to propose deletions from any additional information submitted after the initial request.
An additional deletions statement, however, is not required with each submission of addi-
tional information if the taxpayer’s initial deletions statement requests that only names,
addresses, and identifying numbers are to be deleted and the taxpayer wants only the same
information deleted from the additional information.
(e) Taxpayer may protest deletions not made. After receiving from the Service the
notice under § 6110(f)(1) of intention to disclose the letter ruling or determination letter
(including a copy of the version proposed to be open to public inspection and notation of
third-party communications under § 6110(d)), the taxpayer may protest the disclosure of
certain information in the letter ruling or determination letter. The taxpayer must send a
written statement within 20 calendar days to the Service office indicated on the notice of
intention to disclose. The statement must identify those deletions that the Service has not
made and that the taxpayer believes should have been made. The taxpayer must also sub-
mit a copy of the version of the letter ruling or determination letter and bracket the dele-
tions proposed that have not been made by the Service. Generally, the Service will not
consider deleting any material that the taxpayer did not propose to be deleted before the
letter ruling or determination letter was issued.
Within 20 calendar days after the Service receives the response to the notice under
§ 6110(f)(1), the Service will mail to the taxpayer its final administrative conclusion
regarding the deletions to be made. The taxpayer does not have the right to a conference
to resolve any disagreements concerning material to be deleted from the text of the letter
ruling or determination letter. However, these matters may be taken up at any conference
that is otherwise scheduled regarding the request.
(f) Taxpayer may request delay of public inspection. After receiving the notice under
§ 6110(f)(1) of intention to disclose, but within 60 calendar days after the date of notice,
the taxpayer may send a request for delay of public inspection under either § 6110(g)(3)
or (4). The request for delay must be sent to the Service office indicated on the notice of
intention to disclose. A request for delay under § 6110(g)(3) must contain the date on
which it is expected that the underlying transaction will be completed. The request for
January 2, 2001 138 2001–1 I.R.B.

delay under § 6110(g)(4) must contain a statement from which the Commissioner of
Internal Revenue may determine that there are good reasons for the delay.
Section 6110(l)(1) states that § 6110 disclosure provisions do not apply to any matter to
which § 6104 applies. Therefore, letter rulings, determination letters, technical advice
memoranda, and related background file documents dealing with the following matters
(covered by § 6104) are not subject to § 6110 disclosure provisions—
(i) An application for exemption under § 501(a) as an organization described in § 501(c)

or (d), or any application filed with respect to the qualification of a pension, profit-sharing
or stock bonus plan, or an individual retirement account, whether the plan or account has
more than 25 or less than 26 participants, or any application for exemption under § 501(a)
by an organization forming part of such a plan or account;
(ii) Any document issued by the Internal Revenue Service in which the qualification or
exempt status of an organization, plan, or account is granted, denied, or revoked or the por-
tion of any document in which technical advice with respect thereto is given;
(iii) Any application filed and any document issued by the Internal Revenue Service
with respect to the qualification or status of EP Technical master and prototype plans;
(iv) The portion of any document issued by the Internal Revenue Service with respect
to the qualification or exempt status of an organization, plan, or account, of a proposed
transaction by such organization, plan, or account; and
(v) Any document issued by the Internal Revenue Service in which is discussed the sta-
tus of an organization under § 509(a) or § 4942(j)(3), other than one issued to a nonexempt
charitable trust described in § 4947(a)(1). This includes documents discussing the termi-
nation of private foundation status under § 507.
Signature on request (10) Signature by taxpayer or authorized representative. The request for a letter rul-
ing or determination letter must be signed and dated by the taxpayer or the taxpayer’s
Authorized representatives (11) Authorized representatives. To sign the request or to appear before the Service
in connection with the request, the representative must be:
Attorney (a) An attorney who is a member in good standing of the bar of the highest court of any
file a written declaration with the Service showing current qualification as an attorney and
Certified public accountant (b) A certified public accountant who is qualified to practice in any state, possession,
territory, commonwealth, or the District of Columbia and who is not currently under sus-
pension or disbarment from practice before the Service. He or she must file a written dec-
laration with the Service showing current qualification as a certified public accountant and
Enrolled agent (c) An enrolled agent who is a person, other than an attorney or certified public accoun-
tant, that is currently enrolled to practice before the Service and is not currently under sus-
pension or disbarment from practice before the Service, including a person enrolled to
practice only for employee plans matters. He or she must file a written declaration with
the Service showing current enrollment and authorization to represent the taxpayer. Either
the enrollment number or the expiration date of the enrollment card must be included in
the declaration. For the rules on who may practice before the Service, see Treasury
Department Circular No. 230 (31 C.F.R. part 10 (1999));
2001–1 I.R.B. 139 January 2, 2001

Enrolled actuary (d) An enrolled actuary who is a person enrolled as an actuary by the Joint Board for
the Enrollment of Actuaries pursuant to 29 U.S.C. 1242 and qualified to practice in any
file a written declaration with the Service showing current qualification as an enrolled
actuary and current authorization to represent the taxpayer. Practice as an enrolled actu-
ary is limited to representation with respect to issues involving the following statutory pro-
visions: §§ 401, 403(a), 404, 412, 413, 414, 4971, 6057, 6058, 6059, 6652(e), 6652(f),
6692, 7805(b), and 29 U.S.C. 1083;
A person with a “Letter (e) Any other person, including a foreign representative who has received a “Letter of
of Authorization” Authorization” from the Director of Practice under section 10.7(d) of Treasury
Department Circular No. 230. A person may make a written request for a “Letter of
Authorization” to: Office of Director of Practice, Internal Revenue Service, 1111
Constitution Avenue, N.W., Washington, DC 20224. Section 10.7(d) of Circular No. 230
authorizes the Commissioner to allow an individual who is not otherwise eligible to prac-
tice before the Service to represent another person in a particular matter.
Employee, general partner, (f) The above requirements do not apply to a regular full-time employee representing
bona fide officer, administrator, his or her employer, to a general partner representing his or her partnership, to a bona fide
trustee, etc. officer representing his or her corporation, association, or organized group, to a trustee,
receiver, guardian, personal representative, administrator, or executor representing a trust,
receivership, guardianship, or estate, or to an individual representing his or her immediate
family. A preparer of a return (other than a person referred to in paragraph (a), (b), (c), (d)
or (e) of this section 9.02(11)) who is not a full-time employee, general partner, a bona fide
officer, an administrator, trustee, etc., or an individual representing his or her immediate
family may not represent a taxpayer in connection with a letter ruling, determination letter
or a technical advice request. See section 10.7(c) of Treasury Department Circular No. 230.
Foreign representative (g) A foreign representative (other than a person referred to in paragraph (a), (b), (c),
(d) or (e) of this section 9.02(11)) is not authorized to practice before the Service and,
therefore, must withdraw from representing a taxpayer in a request for a letter ruling or a
determination letter. In this situation, the nonresident alien or foreign entity must submit
the request for a letter ruling or a determination letter on the individual’s or entity’s own
behalf or through a person referred to in paragraph (a), (b), (c), (d) or (e) of this section
9.02(11).
Power of attorney and (12) Power of attorney and declaration of representative. Any authorized represen-
declaration of representative tative, whether or not enrolled to practice, must also comply with the conference and prac-
tice requirements of the Statement of Procedural Rules (26 C.F.R. § 601.501–601.509
(2000)), which provide the rules for representing a taxpayer before the Service.
It is preferred that Form 2848, Power of Attorney and Declaration of Representative, be

used to provide the representative’s authorization (Part I of Form 2848, Power of Attorney)
and the representative’s qualification (Part II of Form 2848, Declaration of
Representative). The name of the person signing Part I of Form 2848 should also be typed
or printed on this form. A stamped signature is not permitted. An original, a copy, or a fac-
simile transmission (fax) of the power of attorney is acceptable so long as its authenticity
is not reasonably disputed. For additional information regarding the power of attorney
form, see section 9.03(2) of this revenue procedure.
For the requirement regarding compliance with Treasury Department Circular No. 230,
see section 9.09 of this revenue procedure.
Penalties of perjury statement (13) Penalties of perjury statement.
(a) Format of penalties of perjury statement. A request for a letter ruling or deter-
mination letter and any change in the ruling request submitted at a later time must be
January 2, 2001 140 2001–1 I.R.B.

accompanied by the following declaration: “Under penalties of perjury, I declare that I
have examined this request, or this modification to the request, including accompa-
nying documents, and, to the best of my knowledge and belief, the request or the
modification contains all the relevant facts relating to the request, and such facts are
true, correct, and complete.” See section 11.04 of this revenue procedure for the penal-
ties of perjury statement applicable for submissions of additional information.
(b) Signature by taxpayer. The declaration must be signed and dated by the taxpay-
er, not the taxpayer’s representative. A stamped signature is not permitted.
The person who signs for a corporate taxpayer must be an officer of the corporate tax-
payer who has personal knowledge of the facts, and whose duties are not limited to obtain-
ing a letter ruling or determination letter from the Service. If the corporate taxpayer is a
member of an affiliated group filing consolidated returns, a penalties of perjury statement
must also be signed and submitted by an officer of the common parent of the group.
The person signing for a trust, a state law partnership, or a limited liability company
must be, respectively, a trustee, general partner, or member-manager who has personal
knowledge of the facts.
Applicable user fee (14) Applicable user fee. Section 10511 of the Revenue Act of 1987, Pub. L. No. 100-
203, 101 Stat. 1330-382, 1330-446, enacted December 22, 1987, as amended by § 11319
of the Omnibus Budget Reconciliation Act of 1990, 1991–2 C.B. 481, 511, enacted
November 5, 1990; by § 743 of the Uruguay Round Agreements Act, 1995–1 C.B. 230,
239, enacted December 8, 1994; and by § 2 of the Tax Relief to Operation Joint Endeavor
Participants Act, Pub. L. No. 104–117, 110 STAT. 827, 828, enacted March 20, 1996,
requires taxpayers to pay user fees for requests for rulings, opinion letters, determination
letters, and similar requests. Rev. Proc. 2001–8, page 239, this Bulletin, contains the
schedule of fees for each type of request under the jurisdiction of the Commissioner, Tax
Exempt and Government Entities Division and provides guidance for administering the
user fee requirements. If two or more taxpayers are parties to a transaction and each
requests a letter ruling, each taxpayer must satisfy the rules herein and additional user fees
may apply.
Number of copies of request (15) Number of copies of request to be submitted. Generally a taxpayer needs only
to be submitted to submit one copy of the request for a letter ruling or determination letter. If, however,
more than one issue is presented in the letter ruling request, the taxpayer is encouraged to
submit additional copies of the request.
Further, two copies of the request for a letter ruling or determination letter are required if—
(a) the taxpayer is requesting separate letter rulings or determination letters on different
issues as explained later under section 9.03(1) of this revenue procedure;
(b) the taxpayer is requesting deletions other than names, addresses, and identifying
numbers, as explained in section 9.02(9) of this revenue procedure. (One copy is the
request for the letter ruling or determination letter and the second copy is the deleted ver-
sion of such request.); or
(c) a closing agreement (as defined in section 3.03 of this revenue procedure) is being
requested on the issue presented.
Sample of a letter ruling request (16) Sample format for a letter ruling request. To assist a taxpayer or the taxpayer’s
representative in preparing a letter ruling request, a sample format for a letter ruling request is
provided in Appendix A. This format is not required to be used by the taxpayer or the tax-
payer’s representative. If the letter ruling request is not identical or similar to the format in
Appendix A, the different format will neither defer consideration of the letter ruling request
nor be cause for returning the request to the taxpayer or taxpayer’s representative.
2001–1 I.R.B. 141 January 2, 2001

Checklist (17) Checklist for letter ruling requests. The Service will be able to respond more
quickly to a taxpayer’s letter ruling request if it is carefully prepared and complete. The
checklist in Appendix B of this revenue procedure is designed to assist taxpayers in prepar-
ing a request by reminding them of the essential information and documents to be fur-
nished with the request. The checklist in Appendix B must be completed to the extent
required by the instructions in the checklist, signed and dated by the taxpayer or the tax-
payer’s representative, and placed on top of the letter ruling request. If the checklist in
Appendix B is not received, a group representative will ask the taxpayer or the taxpayer’s
representative to submit the checklist, which may delay action on the letter ruling request.
A photocopy of this checklist may be used.
Additional information required .03

in certain circumstances
Multiple issues (1) To request separate letter rulings for multiple issues in a single situation. If
more than one issue is presented in a request for a letter ruling, the Service generally will
issue a single ruling letter covering all the issues. However, if the taxpayer requests sep-
arate letter rulings on any of the issues (because, for example, one letter ruling is needed
sooner than another), the Service will usually comply with the request unless it is not fea-
sible or not in the best interests of the Service to do so. A taxpayer who wants separate
letter rulings on multiple issues should make this clear in the request and submit two
copies of the request.
In issuing each letter ruling, the Service will state that it has issued separate letter rul-
ings or that requests for other letter rulings are pending.
Power of attorney (2) To designate recipient of original or copy of letter ruling or determination let-
ter. Unless the power of attorney provides otherwise, the Service will send the original of
the letter ruling or determination letter to the taxpayer and a copy of the letter ruling or
determination letter to the taxpayer’s representative. In this case, the letter ruling or
determination letter is addressed to the taxpayer. It is preferred that Form 2848, Power of
Attorney and Declaration of Representative, be used to provide the representative’s autho-
rization. See section 9.02(12) of this revenue procedure.
Copies of letter ruling or (a) To have copies sent to multiple representatives. When a taxpayer has more than
determination letter sent to one representative, the Service will send the copy of the letter ruling or determination let-
multiple representatives ter to the first representative named on the most recent power of attorney. If the taxpayer
wants an additional copy of the letter ruling or determination letter sent to the second rep-
resentative listed in the power of attorney, the taxpayer must check the appropriate box on
Form 2848. If this form is not used, the taxpayer must state in the power of attorney that
a copy of the letter ruling or determination letter is to be sent to the second representative
listed in the power of attorney. Copies of the letter ruling or determination letter, howev-
er, will be sent to no more than two representatives.
Original of letter ruling or (b) To have original sent to taxpayer’s representative. A taxpayer may request that
determination letter sent to the original of the letter ruling or determination letter be sent to the taxpayer’s representa-
taxpayer’s representative tive. In this case, a copy of the letter ruling or determination letter will be sent to the tax-
payer. The letter ruling or determination letter is addressed to the taxpayer’s representa-
tive to whom the original is sent.
If the taxpayer wants the original of the letter ruling or determination letter sent to the
taxpayer’s representative, the taxpayer must check the appropriate box on Form 2848. If
this form is not used, the taxpayer must state in the power of attorney that the original of
the letter ruling or determination letter is to be sent to the taxpayer’s representative. When
a taxpayer has more than one representative, the Service will send the original of the let-
ter ruling or determination letter to the first representative named in the most recent power
of attorney.
January 2, 2001 142 2001–1 I.R.B.

No copy of letter ruling or (c) To have no copy sent to taxpayer’s representative. If a taxpayer does not want a
determination letter sent to copy of the letter ruling or determination letter sent to any representative, the taxpayer
taxpayer’s representative must check the appropriate box on Form 2848. If this form is not used, the taxpayer must
state in the power of attorney that a copy of the letter ruling or determination letter is not
to be sent to any representative.
Expedited handling (3) To request expedited handling. The Service ordinarily processes requests for let-
ter rulings and determination letters in order of the date received. Expedited handling
means that a request is processed ahead of the regular order. Expedited handling is grant-
ed only in rare and unusual cases, both out of fairness to other taxpayers and because the
Service seeks to process all requests as expeditiously as possible and to give appropriate
deference to normal business exigencies in all cases not involving expedited handling.
A taxpayer who has a compelling need to have a request processed ahead of the regular
order may request expedited handling. This request must explain in detail the need for
expedited handling. The request must be made in writing, preferably in a separate letter
with, or soon after filing, the request for the letter ruling or determination letter. If the
request is not made in a separate letter, then the letter in which the letter ruling or deter-
mination letter request is made should say, at the top of the first page: “Expedited
Handling Is Requested. See page ___ of this letter.”
A request for expedited handling will not be forwarded to the appropriate group for
action until the check or money order for the user fee in the correct amount is received.
Whether the request will be granted is within the Service’s discretion. The Service may
grant a request when a factor outside a taxpayer’s control creates a real business need to
obtain a letter ruling or determination letter before a certain time in order to avoid serious
business consequences. Examples include situations in which a court or governmental
agency has imposed a specific deadline for the completion of a transaction, or a transac-
tion must be completed expeditiously to avoid an imminent business emergency (such as
the hostile takeover of a corporate taxpayer), provided that the taxpayer can demonstrate
that the deadline or business emergency, and the need for expedited handling, resulted
from circumstances that could not reasonably have been anticipated or controlled by the
taxpayer. To qualify for expedited handling in such situations, the taxpayer must also
demonstrate that the taxpayer submitted the request as promptly as possible after becom-
ing aware of the deadline or emergency. The extent to which the letter ruling or determi-
nation letter complies with all of the applicable requirements of this revenue procedure,
and fully and clearly presents the issues, is a factor in determining whether expedited treat-
ment will be granted. When the Service agrees to process a request out of order, it cannot
give assurance that any letter ruling or determination letter will be processed by the time
requested.
The scheduling of a closing date for a transaction or a meeting of the board of directors
or shareholders of a corporation, without regard for the time it may take to obtain a letter
ruling or determination letter, will not be considered a sufficient reason to process a
request ahead of its regular order. Also, the possible effect of fluctuation in the market
price of stocks on a transaction will not be considered a sufficient reason to process a
request out of order.
Because most requests for letter rulings and determination letters cannot be processed
ahead of the regular order, the Service urges all taxpayers to submit their requests well in
advance of the contemplated transaction. In addition, to facilitate prompt action on letter
ruling requests, taxpayers are encouraged to ensure that their initial submissions comply
with all of the requirements of this revenue procedure (including the requirements of other
applicable guidelines set forth in section 10 of this revenue procedure), and to provide any
additional information requested by the Service promptly.
2001–1 I.R.B. 143 January 2, 2001

Facsimile transmission (fax) (4) To receive a letter ruling or submit a request for a letter ruling by facsimile
transmission (fax).
(a) To receive a letter ruling by fax. A letter ruling ordinarily is not sent by fax.
However, if the taxpayer requests, a copy of a letter ruling may be faxed to the taxpayer
or the taxpayer’s authorized representative. A letter ruling, however, is not issued until the
ruling is mailed. See § 301.6110–2(h).
A request to fax a copy of the letter ruling to the taxpayer or the taxpayer’s authorized
representative must be made in writing, either as part of the original letter ruling request
or prior to the approval of the letter ruling. The request must contain the fax number of
the taxpayer or the taxpayer’s authorized representative to whom the letter ruling is to be
faxed.
In addition, because of the nature of a fax transmission, a statement containing a waiv-

er of any disclosure violations resulting from the fax transmission must accompany the
request. Nevertheless, the Service will take certain precautions to protect confidential
information. For example, the Service will use a cover sheet that identifies the intended
recipient of the fax and the number of pages transmitted. The cover sheet, if possible, will
not identify the specific taxpayer by name, and it will be the first page covering the letter
ruling being faxed.
(b) To submit a request for a letter ruling by fax. Original letter ruling requests sent
by fax are discouraged because such requests must be treated in the same manner as
requests by letter. For example, the faxed letter ruling request will not be forwarded to the
applicable office for action until the check for the user fee is received.
Requesting a conference (5) To request a conference. A taxpayer who wants to have a conference on the issues
involved should indicate this in writing when, or soon after, filing the request. See also
sections 12.01, 12.02, and 13.09(2) of this revenue procedure.
Address to send the request .04
Requests for letter rulings (1) Requests for letter rulings should be sent to the following offices (as appropriate):
Employee Plans
Commissioner, TE/GE
Attention: T:EP:RA
P.O. Box 27063
McPherson Station
Exempt Organizations
Commissioner, TE/GE
Attention: T:EO:RA
P.O. Box 27720
McPherson Station
Hand delivered requests must be marked RULING REQUEST SUBMISSION. The

delivery should be made to the following address between the hours of 8:15 a.m. and 5:00
p.m. where a receipt will be given:
January 2, 2001 144 2001–1 I.R.B.

Courier’s Desk
Attention: T:AS
Requests for information letters (2) Requests for information letters on either employee plans matters or exempt orga-
nizations matters should be sent to Employee Plans or Exempt Organizations (as appro-
priate):

Commissioner, TE/GE
Attention: T:EP or T:EO
Requests for determination letters (3) Requests for determination letters should be sent to:

EP/EO Determinations Processing
P.O. Box 192
Covington, KY 41012-0192
For fees required with determination letter requests, see section 6 of Rev. Proc. 2001–8.
Summary of Exempt (4) To expedite taxpayer service, this table summarizes the various types of exempt
Organizations fees organization issues, indicates the office of jurisdiction for each type, and lists the applica-
ble user fee. Reduced fees may be applicable in certain instances.
ISSUE LOCATION FEE

Accounting period and method changes Technical $140
Advance approval after recognition of exemption Determinations none
Advance ruling period inquiries Determinations none
Amendments, reorganizations, name changes Determinations none
Application for recognition of exemption Determinations $500
Confirmation of exemption Determinations none
Qualified subsidiaries of § 501(c)(25) organizations Technical $500
Regulation § 301.9100 relief in connection with
applications for recognition of exemption Determinations none
Section 507 terminations
(a) Notice under § 507(b)(1) or (2) Determinations none
(b) Advance ruling under § 507(b)(1) or (2) Technical $2,275
Section 514(b)(3) Neighborhood Land Use Rule Technical none
Section 4940(d) exempt operating foundation status Determinations none
Section 4942(g)(2) set-asides notification Technical none
Section 4943(c)(7) extensions of disposal period Technical $2,275
Section 4945 advance approval of organization’s grant
making procedures with applications for
recognition of exemption Determinations none
2001–1 I.R.B. 145 January 2, 2001

Section 4945(f) advance approval of voter registration activities Determinations none
Section 6033 annual information return filing requirements
(a) requested with original application Determinations none
(b) requested after recognition of exemption Technical $220
Unusual grants to certain organizations under
§§ 170(b)(1)(A)(vi) and 509(a)(2) Determinations none
Pending letter ruling requests .05
(1) Circumstances under which the taxpayer must notify EP or EO Technical. The
taxpayer must notify EP or EO Technical if, after the letter ruling request is filed but before
a letter ruling is issued, the taxpayer knows that—
(a) an examination of the issue or the identical issue on an earlier year’s return has been
started by an EP or EO Examinations office;
(b) in employee plans matters, the issue is being considered by the Pension Benefit
Guaranty Corporation or the Department of Labor; or
(c) legislation that may affect the transaction has been introduced (see section 9.02(8)
of this revenue procedure).
(2) Taxpayer must notify EP or EO Technical if return is filed and must attach
request to return. If the taxpayer files a return before a letter ruling is received from EP
or EO Technical concerning the issue, the taxpayer must notify EP or EO Technical that
the return has been filed. The taxpayer must also attach a copy of the letter ruling request
to the return to alert the EP or EO Examinations office and thereby avoid premature EP or
EO Examinations office action on the issue.
When to attach letter .06 A taxpayer who receives a letter ruling before filing a return about any transaction
ruling to return that is relevant to the return being filed must attach a copy of the letter ruling to the return
when it is filed.
How to check on status of request .07 The taxpayer or the taxpayer’s authorized representative may obtain information
regarding the status of a request by calling the person whose name and telephone number
are shown on the acknowledgement of receipt of the request.
Request may be withdrawn or .08

EP or EO Technical may
decline to issue letter ruling (1) In general. A taxpayer may withdraw a request for a letter ruling or determi-
nation letter at any time before the letter ruling or determination letter is signed by the
Service. Correspondence and exhibits related to a request that is withdrawn or relat-
ed to a letter ruling request for which the Service declines to issue a letter ruling will
not be returned to the taxpayer. See section 9.02(2) of this revenue procedure. In
appropriate cases, the Service may publish its conclusions in a revenue ruling or rev-
enue procedure.
A request for a letter ruling will not be suspended in EP or EO Technical at the request
of a taxpayer.
(2) Notification of Director, EP or EO Examinations. If a taxpayer withdraws a

request for a letter ruling or if EP or EO Technical declines to issue a letter ruling, EP or
EO Technical will notify the Director, EP or EO Examinations and may give its views on
the issues in the request to the Director, EP or EO Examinations to consider in any later
examination of the return.
January 2, 2001 146 2001–1 I.R.B.

(3) Refunds of user fee. The user fee will not be returned for a letter ruling request
that is withdrawn. If the Service declines to issue a letter ruling on all of the issues in the
request, the user fee will be returned. If the Service, however, issues a letter ruling on
some, but not all, of the issues, the user fee will not be returned. See section 10 of Rev.
Proc. 2001–8 for additional information regarding refunds of user fees.
Compliance with Treasury .09 The taxpayer’s authorized representative, whether or not enrolled, must comply with
Department Circular No. 230 Treasury Department Circular No. 230, which provides the rules for practice before the
Service. In those situations when EP or EO Technical believes that the taxpayer’s represen-
tative is not in compliance with Circular No. 230, EP or EO Technical will bring the matter
to the attention of the Director of Practice.
For the requirement regarding compliance with the conference and practice require-
ments, see section 9.02(12) of this revenue procedure.
SECTION 10. WHAT SPECIFIC,

ADDITIONAL PROCEDURES
APPLY TO CERTAIN
REQUESTS?
In general .01 Specific revenue procedures supplement the general instructions for requests
explained in section 9 of this revenue procedure and apply to requests for letter rulings or
determination letters regarding the Code sections and matters listed in this section.
Exempt Organizations .02 If the request is for the qualification of an organization for exemption from federal
income tax under § 501 or 521, see Rev. Proc. 72–5, 1972–1 C.B. 709, regarding religious
and apostolic organizations; Rev. Proc. 80–27, 1980–1 C.B. 677, concerning group
exemptions; and Rev. Proc. 90–27, 1990–1 C.B. 514 (as modified by Rev. Proc. 2001–8),
regarding applications for recognition of exemption.
Employee Plans .03
(1) For requests to obtain approval for a retroactive amendment described in § 412(c)(8)
of the Code and § 302(c)(8) of the Employee Retirement Income Security Act of 1974
(ERISA) that reduces accrued benefits, see Rev. Proc. 94–42, 1994–1 C.B. 717.
(2) For requests for a waiver of the minimum funding standards, see Rev. Proc. 94–41,
1994–1 C.B. 711.
(3) For requests for a waiver of the 100 percent tax imposed under § 4971(b) of the
Code on a pension plan that fails to meet the minimum funding standards of § 412, see
Rev. Proc. 81–44, 1981–2 C.B. 618.
(4) For requests for a determination that a plan amendment is reasonable and provides
for only de minimis increases in plan liabilities in accordance with §§ 401(a)(33) and
412(f)(2)(A), see Rev. Proc. 79–62, 1979–2 C.B. 576.
(5) For requests to obtain approval for an extension of an amortization period of any
unfunded liability in accordance with § 412(e), see Rev. Proc. 79–61, 1979–2 C.B. 575.
(6) For requests by administrators or sponsors of a defined benefit plan to obtain

approval for a change in funding method, see Rev. Proc. 2000–41, 2000–42 I.R.B. 371.
(7) For requests for the return to the employer of certain nondeductible contributions,
see Rev. Proc. 90–49, 1990–2 C.B. 620 (as modified by Rev. Proc. 2001–8).
(8) For requests for determination letters for plans under §§ 401, 403(a), 409, and
4975(e)(7), and for the exempt status of any related trust under § 501, see Rev. Proc.
2001–6, Rev. Proc. 93–10 and Rev. Proc. 93–12.
2001–1 I.R.B. 147 January 2, 2001
SECTION 11. HOW DOES EP OR
EO TECHNICAL HANDLE
LETTER RULING REQUESTS?
In general .01 The Service will issue letter rulings on the matters and under the circumstances
explained in sections 4 and 6 of this revenue procedure and in the manner explained in this
section and section 13 of this revenue procedure.
Is not bound by informal .02 The Service will not be bound by the informal opinion expressed by the group rep-
opinion expressed resentative or any other authorized Service representative under this procedure, and such
an opinion cannot be relied upon as a basis for obtaining retroactive relief under the pro-
visions of § 7805(b).
Tells taxpayer if request lacks .03 If a request for a letter ruling or determination letter does not comply with all the
essential information provisions of this revenue procedure, the request will be acknowledged and the Service
during initial contact representative will tell the taxpayer during the initial contact which requirements have not
been met.
Information must be submitted If the request lacks essential information, which may include additional information
within 30 calendar days needed to satisfy the procedural requirements of this revenue procedure, as well as sub-
stantive changes to transactions or documents needed from the taxpayer, the Service rep-
resentative will tell the taxpayer during the initial contact that the request will be closed if
the Service does not receive the information within 30 calendar days unless an extension
of time is granted. See section 11.04 of this revenue procedure for information on exten-
sion of time and instructions on submissions of additional information.
Letter ruling request mistakenly A request for a letter ruling sent to EP/EO Determinations Processing that does not com-
sent to EP or EO ply with the provisions of this revenue procedure will be returned by EP/EO
Determinations Processing Determinations Processing so that the taxpayer can make corrections before sending it to
EP or EO Technical.
Requires prompt submission of .04 Material facts furnished to the Service by telephone or fax, or orally at a conference,
additional information requested must be promptly confirmed by letter to the Service. This confirmation and any addition-
after initial contact al information requested by the Service that is not part of the information requested dur-
ing the initial contact must be furnished within 21 calendar days to be considered part of
the request.
Additional information submitted to the Service must be accompanied by the following

declaration: “Under penalties of perjury, I declare that I have examined this infor-
mation, including accompanying documents, and, to the best of my knowledge and
belief, the information contains all the relevant facts relating to the request for the
information, and such facts are true, correct, and complete.” This declaration must be
signed in accordance with the requirements in section 9.02(13)(b) of this revenue proce-
dure. A taxpayer who submits additional factual information on several occasions may
provide one declaration subsequent to all submissions that refers to all submissions.
Encourage use of fax (1) To facilitate prompt action on letter ruling requests, taxpayers are encouraged to
submit additional information by fax as soon as the information is available. The Service
representative who requests additional information can provide a telephone number to
which the information can be faxed. A copy of this information and a signed perjury state-
ment, however, must be mailed or delivered to the Service.
Address to send additional (2) Additional information should be sent to the same address as the original letter rul-
information ing request. See section 9.04. However, the additional information should include the
name, office symbols, and room number of the Service representative who requested the
information and the taxpayer’s name and the case control number (which the Service rep-
resentative can provide).
January 2, 2001 148 2001–1 I.R.B.

Number of copies of additional (3) Generally, a taxpayer needs only to submit one copy of the additional information.
information to be submitted However, in appropriate cases, the Service may request additional copies of the information.
30-day or 21-day period may be (4) An extension of the 30-day period under section 11.03 or the 21-day period under
extended if justified and approved section 11.04, will be granted only if justified in writing by the taxpayer and approved by
the manager of the group to which the case is assigned. A request for extension should be
submitted before the end of the 30-day or 21-day period. If unusual circumstances close
to the end of the 30-day or 21-day period make a written request impractical, the taxpay-
er should notify the Service within the 30-day or 21-day period that there is a problem and
that the written request for extension will be coming soon. The taxpayer will be told
promptly, and later in writing, of the approval or denial of the requested extension. If the
extension request is denied, there is no right of appeal.
If taxpayer does not submit (5) If the taxpayer does not follow the instructions for submitting additional informa-
additional information tion or requesting an extension within the time provided, a letter ruling will be issued on
the basis of the information on hand, or, if appropriate, no letter ruling will be issued.
When the Service decides not to issue a letter ruling because essential information is lack-
ing, the case will be closed and the taxpayer notified in writing. If the Service receives
the information after the letter ruling request is closed, the request may be reopened
and treated as a new request. However, the taxpayer must pay another user fee
before the case can be reopened.
Near the completion of the ruling .05 Generally, after the conference of right is held but before the letter ruling is issued,
process, advises taxpayer of the Service representative will inform the taxpayer or the taxpayer’s authorized represen-
conclusions and, if the Service will tative of the Service’s final conclusions. If the Service is going to rule adversely, the tax-
rule adversely, offers the taxpayer payer will be offered the opportunity to withdraw the letter ruling request. If the taxpay-
the opportunity to withdraw the er or the taxpayer’s representative does not promptly notify the Service representative of
letter ruling request a decision to withdraw the ruling request, the adverse letter will be issued. The user fee will not
be refunded for a letter ruling request that is withdrawn. See section 10 of Rev. Proc. 2001–8.
May request draft of proposed .06 To accelerate issuance of letter rulings, in appropriate cases near the completion of
letter ruling near the completion the ruling process, the Service representative may request that the taxpayer or the taxpay-
of the ruling process er’s representative submit a proposed draft of the letter ruling on the basis of discussions
of the issues. The taxpayer, however, is not required to prepare a draft letter ruling in order
to receive a letter ruling.
The format of the submission should be discussed with the Service representative who
requests the draft letter ruling. The representative usually can provide a sample format of a
letter ruling and will discuss the facts, analysis, and letter ruling language to be included.
Taxpayer may also submit In addition to a typed draft, taxpayers are encouraged to submit this draft on a disk in
draft on a word processing disk Rich Text Format. The typed draft will become part of the permanent files of the Service, and
the word processing disk will not be returned. If the Service representative requesting the
draft letter ruling cannot answer specific questions about the format of the word processing
disk, the questions can be directed to Alan Pipkin at (202) 283-9647 (Employee Plans), or
Wayne Hardesty at (202) 283-8976 (Exempt Organizations) (not toll-free calls).
The proposed letter ruling (both typed draft and word processing disk) should be sent to
the same address as any additional information and contain in the transmittal the informa-
tion that should be included with any additional information (for example, a penalties of
perjury statement is required). See section 11.04 of this revenue procedure.
SECTION 12. HOW ARE

Schedules a conference if .01 A taxpayer may request a conference regarding a letter ruling request. Normally, a
requested by taxpayer conference is scheduled only when the Service considers it to be helpful in deciding the
2001–1 I.R.B. 149 January 2, 2001

case or when an adverse decision is indicated. If conferences are being arranged for more
than one request for a letter ruling involving the same taxpayer, they will be scheduled so
as to cause the least inconvenience to the taxpayer. As stated in section 9.03(5) of this rev-
enue procedure, a taxpayer who wants to have a conference on the issue or issues involved
should indicate this in writing when, or soon after, filing the request.
If a conference has been requested, the taxpayer will be notified by telephone, if possi-
ble, of the time and place of the conference, which must then be held within 21 calendar
days after this contact. Instructions for requesting an extension of the 21-day period and
notifying the taxpayer or the taxpayer’s representative of the Service’s approval or denial
of the request for extension are the same as those explained in section 11.04 of this rev-
enue procedure regarding providing additional information.
Permits taxpayer one .02 A taxpayer is entitled, as a matter of right, to only one conference, except as
conference of right explained under section 12.05 of this revenue procedure. This conference normally will
be held at the group level and will be attended by a person who, at the time of the confer-
ence, has the authority to sign the ruling letter in his or her own name or for the group man-
ager.
When more than one group has taken an adverse position on an issue in a letter ruling
request, or when the position ultimately adopted by one group will affect that adopted by
another, a representative from each group with the authority to sign in his or her own name
or for the group manager will attend the conference. If more than one subject is to be dis-
cussed at the conference, the discussion will constitute a conference on each subject.
To have a thorough and informed discussion of the issues, the conference usually will
be held after the group has had an opportunity to study the case. However, at the request
of the taxpayer, the conference of right may be held earlier.
No taxpayer has a right to appeal the action of a group to any other official of the
Service. But see section 12.05 of this revenue procedure for situations in which the
Service may offer additional conferences.
Disallows verbatim recording .03 Because conference procedures are informal, no tape, stenographic, or other verba-
of conferences tim recording of a conference may be made by any party.
Makes tentative recommendations .04 The senior Service representative present at the conference ensures that the taxpay-
on substantive issues er has the opportunity to present views on all the issues in question. A Service represen-
tative explains the Service’s tentative decision on the substantive issues and the reasons for
that decision. If the taxpayer asks the Service to limit the retroactive effect of any letter
ruling or limit the revocation or modification of a prior letter ruling, a Service representa-
tive will discuss the recommendation concerning this issue and the reasons for the recom-
mendation. The Service representative will not make a commitment regarding the con-
clusion that the Service will finally adopt.
May offer additional conferences .05 The Service will offer the taxpayer an additional conference if, after the conference
of right, an adverse holding is proposed, but on a new issue, or on the same issue but on
different grounds from those discussed at the first conference. There is no right to anoth-
er conference when a proposed holding is reversed at a higher level with a result less favor-
able to the taxpayer, if the grounds or arguments on which the reversal is based were dis-
cussed at the conference of right.
The limit on the number of conferences to which a taxpayer is entitled does not prevent
the Service from offering additional conferences, including conferences with an official
higher than the group level, if the Service decides they are needed. Such conferences are
not offered as a matter of course simply because the group has reached an adverse deci-
sion. In general, conferences with higher level officials are offered only if the Service
determines that the case presents significant issues of tax policy or tax administration and
January 2, 2001 150 2001–1 I.R.B.

that the consideration of these issues would be enhanced by additional conferences with
the taxpayer.
Requires written confirmation .06 The taxpayer should furnish to the Service any additional data, reasoning, prece-
of information presented dents, etc., that were proposed by the taxpayer and discussed at the conference but not pre-
at conference viously or adequately presented in writing. The taxpayer must furnish the additional infor-
mation within 21 calendar days from the date of the conference. See section 11.04 of this
revenue procedure for instructions on submission of additional information. If the addi-
tional information is not received within that time, a ruling will be issued on the basis of
the information on hand or, if appropriate, no ruling will be issued.
Procedures for requesting an extension of the 21-day period and notifying the taxpayer
or the taxpayer’s representative of the Service’s approval or denial of the requested exten-
sion are the same as those stated in section 11.04 of this revenue procedure regarding sub-
mitting additional information.
May schedule a pre-submission .07 Sometimes it is advantageous to both the Service and the taxpayer to hold a con-
conference ference before the taxpayer submits the letter ruling request to discuss substantive or pro-
cedural issues relating to a proposed transaction. Such conferences are held only if the
identity of the taxpayer is provided to the Service, only if the taxpayer actually intends to
make a request, only if the request involves a matter on which a letter ruling is ordinarily
issued, and only on a time-available basis. For example, a pre-submission conference will
not be held on an income tax issue if, at the time the pre-submission conference is request-
issue is being examined. See section 6 of this revenue procedure. Generally, the taxpayer
will be asked to provide before the pre-submission conference a statement of whether the
issue is an issue on which a letter ruling is ordinarily issued and a draft of the letter ruling
request or other detailed written statement of the proposed transaction, issue, and legal
analysis. If the taxpayer’s representative will attend the pre-submission conference, a
power of attorney form is required. It is preferred that a Form 2848, Power of Attorney and
Declaration of Representative, be used to provide the representative’s authorization.
Any discussion of substantive issues at a pre-submission conference is advisory only, is

not binding on the Service, and cannot be relied upon as a basis for obtaining retroactive
relief under the provisions of § 7805(b). A letter ruling request submitted following a pre-
submission conference will not necessarily be assigned to the group that held the pre-sub-
mission conference.
Under limited circumstances, .08 A taxpayer may request that their conference of right be held by telephone. This
may schedule a conference to request may occur, for example, when a taxpayer wants a conference of right but believes
be held by telephone that the issue involved does not warrant incurring the expense of traveling to Washington,
DC. If a taxpayer makes such a request, the group manager will decide if it is appropriate
in the particular case to hold the conference of right by telephone. If the request is
approved by the group manager, the taxpayer will be advised when to call the Service rep-
resentatives (not a toll-free call).

WILL A LETTER RULING HAVE?
May be relied on subject .01 A taxpayer ordinarily may rely on a letter ruling received from the Service subject
to limitations to the conditions and limitations described in this section.
Will not apply to another taxpayer .02 A taxpayer may not rely on a letter ruling issued to another taxpayer. See
§ 6110(k)(3).
Will be used by the Director, EP .03 When determining a taxpayer’s liability, the Director, EP or EO Examinations must
or EO Examinations in examining ascertain whether—
the taxpayer’s return
2001–1 I.R.B. 151 January 2, 2001

(1) the conclusions stated in the letter ruling are properly reflected in the return;
(2) the representations upon which the letter ruling was based reflected an accurate
statement of the material facts;
(3) the transaction was carried out substantially as proposed; and
(4) there has been any change in the law that applies to the period during which the
transaction or continuing series of transactions were consummated.
If, when determining the liability, the Director, EP or EO Examinations finds that a let-
ter ruling should be revoked or modified, unless a waiver is obtained from EP or EO
Technical, the findings and recommendations of the Director, EP or EO Examinations will
be forwarded to EP or EO Technical for consideration before further action is taken by the
Director, EP or EO Examinations. Such a referral to EP or EO Technical will be treated
as a request for technical advice and the procedures of Rev. Proc. 2001–5 will be followed.
Otherwise, the letter ruling is to be applied by the Director, EP or EO Examinations in
determining the taxpayer’s liability. Appropriate coordination with EP or EO Technical
will be undertaken if any field official having jurisdiction over a return or other matter pro-
poses to reach a conclusion contrary to a letter ruling previously issued to the taxpayer.
May be revoked or modified if .04 Unless it was part of a closing agreement as described in section 3.03 of this rev-
found to be in error enue procedure, a letter ruling found to be in error or not in accord with the current views
of the Service may be revoked or modified. If a letter ruling is revoked or modified, the
revocation or modification applies to all years open under the statute of limitations unless
the Service uses its discretionary authority under § 7805(b) to limit the retroactive effect
of the revocation or modification.
A letter ruling may be revoked or modified due to—
(1) a notice to the taxpayer to whom the letter ruling was issued;
(2) the enactment of legislation or ratification of a tax treaty;
(3) a decision of the United States Supreme Court;
(4) the issuance of temporary or final regulations; or
(5) the issuance of a revenue ruling, revenue procedure, notice, or other statement pub-
lished in the Internal Revenue Bulletin.
Consistent with these provisions, if a letter ruling relates to a continuing action or a

series of actions, it ordinarily will be applied until any one of the events described above
occurs or until it is specifically withdrawn.
Publication of a notice of proposed rulemaking will not affect the application of any let-
ter ruling issued under this revenue procedure.
Not generally revoked or .05 Except in rare or unusual circumstances, the revocation or modification of a letter
modified retroactively ruling will not be applied retroactively to the taxpayer for whom the letter ruling was
issued or to a taxpayer whose tax liability was directly involved in the letter ruling pro-
vided that—
which the letter ruling was based;
January 2, 2001 152 2001–1 I.R.B.

(4) the letter ruling was originally issued for a proposed transaction; and
(5) the taxpayer directly involved in the letter ruling acted in good faith in relying on
the letter ruling, and revoking or modifying the letter ruling retroactively would be to the
taxpayer’s detriment. For example, the tax liability of each employee covered by a ruling
relating to a qualified plan of an employer is directly involved in such ruling. However,
the tax liability of a member of an industry is not directly involved in a letter ruling issued
to another member and, therefore, the holding in a revocation or modification of a letter
ruling to one member of an industry may be retroactively applied to other members of the
industry. By the same reasoning, a tax practitioner may not extend to one client the non-
retroactive application of a revocation or modification of a letter ruling previously issued
to another client.
If a letter ruling is revoked or modified by letter with retroactive effect, the letter will,
except in fraud cases, state the grounds on which the letter ruling is being revoked or mod-
ified and explain the reasons why it is being revoked or modified retroactively.
Retroactive effect of revocation .06 A letter ruling issued on a particular transaction represents a holding of the Service
or modification applied only on that transaction only. It will not apply to a similar transaction in the same year or any
to a particular transaction other year. And, except in unusual circumstances, the application of that letter ruling to
the transaction will not be affected by the later issuance of regulations (either temporary
or final), if conditions (1) through (5) in section 13.05 of this revenue procedure are met.
However, if a letter ruling on a transaction is later found to be in error or no longer in

accord with the position of the Service, it will not protect a similar transaction of the tax-
payer in the same year or later year.
Retroactive effect of revocation .07 If a letter ruling is issued covering a continuing action or series of actions and the
or modification applied to a letter ruling is later found to be in error or no longer in accord with the position of the
continuing action or series Service, the Commissioner, Tax Exempt and Government Entities Division, ordinarily will
of actions limit the retroactive effect of the revocation or modification to a date that is not earlier than
that on which the letter ruling is revoked or modified.
May be retroactively revoked .08 A taxpayer is not protected against retroactive revocation or modification of a letter
or modified when transaction is ruling involving a completed transaction other than those described in section 13.07 of this
completed without reliance on revenue procedure, because the taxpayer did not enter into the transaction relying on a let-
the letter ruling ter ruling.
retroactivity be limited modification of a letter ruling or determination letter will be applied without retroactive
effect.
A taxpayer to whom a letter ruling or determination letter has been issued may request
that the Commissioner, Tax Exempt and Government Entities Division, limit the retroac-
tive effect of any revocation or modification of the letter ruling or determination letter.
A request to limit the retroactive effect of the revocation or modification of a letter rul-
ing must be in the general form of, and meet the general requirements for, a letter ruling
request. These requirements are given in section 9 of this revenue procedure. Specifically,
the request must also—
2001–1 I.R.B. 153 January 2, 2001

(c) explain the reasons and arguments in support of the relief requested (including a dis-
A request that the Service limit the retroactive effect of a revocation or modification of
a letter ruling may be made in the form of a separate request for a letter ruling when, for
example, a revenue ruling has the effect of revoking or modifying a letter ruling previously
issued to the taxpayer, or when the Service notifies the taxpayer of a change in position
that will have the effect of revoking or modifying the letter ruling. However, when notice
is given by the Director, EP or EO Examinations during an examination of the taxpayer’s
return or by the Appeals Area Director, SB/SE-TE/GE or the Appeals Area Director,
LMSB, during consideration of the taxpayer’s return before an appeals office, a request to
limit retroactive effect must be made in the form of a request for technical advice as
explained in section 19 of Rev. Proc. 2001–5.
When germane to a pending letter ruling request, a request to limit the retroactive effect of
a revocation or modification of a letter ruling may be made as part of the request for the let-
ter ruling, either initially or at any time before the letter ruling is issued. When a letter ruling
that concerns a continuing transaction is revoked or modified by, for example, a subsequent
revenue ruling, a request to limit retroactive effect must be made before the examination of
the return that contains the transaction that is the subject of the letter ruling request.
Consideration of relief under § 7805(b) will be included as one of the taxpayer’s steps
in exhausting administrative remedies only if the taxpayer has requested such relief in the
manner described in this revenue procedure. If the taxpayer does not complete the applic-
able steps, the taxpayer will not have exhausted the taxpayer’s administrative remedies as
required by § 7428(b)(2) and § 7476(b)(3) and will, thus, be precluded from seeking a
declaratory judgment under § 7428 or § 7476. Where the taxpayer has requested § 7805(b)
relief, the taxpayer’s administrative remedies will not be considered exhausted until the
Service has had a reasonable time to act upon the request.
A taxpayer who requests the application of § 7805(b) in a separate letter ruling request
has the right to a conference in EP or EO Technical as explained in sections 12.01, 12.02,
12.03, 12.04 and 12.05 of this revenue procedure. If the request is made initially as part
of a pending letter ruling request or is made before the conference of right is held on the
substantive issues, the § 7805(b) issue will be discussed at the taxpayer’s one conference
of right as explained in section 12.02 of this revenue procedure. If the request for the
application of § 7805(b) relief is made as part of a pending letter ruling request after a con-
ference has been held on the substantive issue and the Service determines that there is jus-
tification for having delayed the request, the taxpayer is entitled to one conference of right
concerning the application of § 7805(b), with the conference limited to discussion of this
issue only.

LETTER HAVE?
Has same effect as a letter ruling .01 A determination letter issued by EP or EO Determinations has the same effect as a
letter ruling issued to a taxpayer under section 13 of this revenue procedure.
January 2, 2001 154 2001–1 I.R.B.

If the Director, EP or EO Examinations proposes to reach a conclusion contrary to that
expressed in a determination letter, he or she need not refer the matter to EP or EO
Technical as is required for a letter ruling found to be in error. However, the Director, EP
or EO Examinations must refer the matter to EP or EO Technical if the Director, EP or EO
Examinations desires to have the revocation or modification of the determination letter
limited under § 7805(b).
Taxpayer may request that .02 The Director, EP or EO Examinations does not have authority under § 7805(b) to
retroactive effect of revocation limit the revocation or modification of the determination letter. Therefore, if the
or modification be limited Director, EP or EO Examinations proposes to revoke or modify a determination letter, the
taxpayer may request limitation of the retroactive effect of the revocation or modification
by asking EP or EO Determinations to seek technical advice from EP or EO Technical. See
section 19 of Rev. Proc. 2001–5.
A taxpayer’s request to limit the retroactive effect of the revocation or modification of

the determination letter must be in the form of, and meet the general requirements for, a
technical advice request. See section 18.06 of Rev. Proc. 2001–5. The request must also—
(c) explain the reasons and arguments in support of the relief sought (including a dis-
When technical advice is requested regarding the application of § 7805(b), the taxpayer has
the right to a conference in EP or EO Technical to the same extent as does any taxpayer who
is the subject of a technical advice request. See section 11 of Rev. Proc. 2001–5.
Exhaustion of administrative (3) Taxpayer steps in exhausting administrative remedies.

remedies
Consideration of relief under § 7805(b) will be included as one of the taxpayer’s steps
in exhausting administrative remedies only if the taxpayer has requested such relief in the
manner described in this revenue procedure. If the taxpayer does not complete the applic-
able steps, the taxpayer will not have exhausted the taxpayer’s administrative remedies as
required by § 7428(b)(2) and § 7476(b)(3) and will, thus, be precluded from seeking a
declaratory judgment under § 7428 or § 7476. Where the taxpayer has requested § 7805(b)
relief, the taxpayer’s administrative remedies will not be considered exhausted until the
Service has had a reasonable time to act upon the request.

CIRCUMSTANCES ARE
MATTERS REFERRED
BETWEEN DETERMINATIONS
AND TECHNICAL?
Requests for determination letters .01 Requests for determination letters received by EP or EO Determinations that, under
the provisions of this revenue procedure, may not be issued by EP or EO Determinations,
will be forwarded to the EP or EO Technical for reply. EP or EO Determinations will noti-
fy the taxpayer that the matter has been referred.
2001–1 I.R.B. 155 January 2, 2001

EP or EO Determinations will also refer to EP or EO Technical any request for a deter-
mination letter that in its judgement should have the attention of EP or EO Technical.
No-rule area .02 If the request involves an issue on which the Service will not issue a letter ruling or
determination letter, the request will not be forwarded to EP or EO Technical. EP or EO
Determinations will notify the taxpayer that the Service will not issue a letter ruling or a deter-
mination letter on the issue. See section 8 of this revenue procedure for a description of no-
rule areas.
Requests for letter rulings .03 Requests for letter rulings received by EP or EO Technical that, under section
6 of this revenue procedure, may not be acted upon by EP or EO Technical will be
forwarded to the Director, EP or EO Examinations. The taxpayer will be notified of
this action. If the request is on an issue or in an area of the type discussed in section
8 of this revenue procedure, and the Service decides not to issue a letter ruling or an
information letter, EP or EO Technical will notify the taxpayer and will then forward
the request to the Director, EP or EO Examinations for association with the related
return.

GENERAL PROCEDURES
APPLICABLE TO INFORMATION
LETTERS ISSUED BY THE
HEADQUARTERS OFFICE?
Will be made available to the .01 Information letters that are issued by the headquarters office to members of the
public public will be made available to the public. These documents provide general statements
of well-defined law without applying them to a specific set of facts. See section 3.06 of
this revenue procedure. Information letters that are issued by the field, however, will not
be made available to the public.
The following documents also will not be available for public inspection as part of this
process:
(1) letters that merely transmit Service publications or other publicly available material,
without significant legal discussion;
(2) responses to taxpayer or third party contacts that are inquiries with respect to a pend-
ing request for a letter ruling, technical advice memorandum, or Chief Counsel Advice
(whose public inspection is subject to § 6110); and
(3) responses to taxpayer or third party communications with respect to any investiga-
tion, audit, litigation, or other enforcement action.
Deletions made under .02 Before any information letter is made available to the public, the headquarters office
the Freedom of Information Act will delete any name, address, and other identifying information as appropriate under the
Freedom of Information Act (“FOIA”) (for example, FOIA personal privacy exemption of
5 U.S.C. § 552(b)(6) and tax details exempt pursuant to § 6103, as incorporated into FOIA
by 5 U.S.C. § 552(b)(3). Because information letters do not constitute written determina-
tions (including Chief Counsel Advice) as defined in § 6110, these documents are not sub-
ject to public inspection under § 6110.
Effect of information letters .03 Information letters are advisory only and have no binding effect on the Service.
See section 3.06 of this revenue procedure. If the headquarters office issues an infor-
mation letter in response to a request for a letter ruling that does not meet the require-
ments of this revenue procedure, the information letter is not a substitute for a letter
ruling.
January 2, 2001 156 2001–1 I.R.B.

SECTION 17. WHAT IS THE Rev. Proc. 2000–4, 2000–1 I.R.B. 115, is superseded.
PROCEDURE ON OTHER
DOCUMENTS?
SECTION 18. EFFECTIVE DATE This revenue procedure is effective January 15, 2001.
Reduction Act (44 U.S.C. § 3507) under control number 1545-1520.
lection of information unless the collection of information displays a valid control number.
9.04, 9.05, 9.06, 10.02, 10.03, 11.03, 11.04(1)-(5), 11.06, 12.01, 12.06, 12.07, 13.09(1),
14.02(1), and in Appendix B. This information is required to evaluate and process the
request for a letter ruling or determination letter. In addition, this information will be used
to help the Service delete certain information from the text of the letter ruling or determi-
nation letter before it is made available for public inspection, as required by § 6110. The
collections of information are required to obtain a letter ruling or determination letter. The
likely respondents are businesses or other for-profit institutions.
The estimated annual burden per respondent/recordkeeper varies from 15 minutes to 16

hours, depending on individual circumstances and the type of request involved, with an
estimated average burden of 6.01 hours. The estimated number of respondents and/or
recordkeepers is 2,103.
The estimated annual frequency of responses is one request per applicant, except that a
taxpayer requesting a letter ruling may also request a presubmission conference.

DRAFTING INFORMATION The principal author of this revenue procedure is Luis O. Ortiz of Employee Plans, Tax
Exempt and Government Entities Division. For further information regarding how this
revenue procedure applies to employee plan matters, contact the Employee Plans tele-
phone assistance service between the hours of 1:30 and 3:30 p.m., Eastern Standard Time,
Monday through Thursday, at (202) 283-9516/17 (not a toll-free call). Mr. Ortiz’ telephone
number is (202) 283-9652 (not a toll-free call). For exempt organization matters, please
contact Ms. Susan L. Paul (202) 283-8959 (not a toll-free call).
2001–1 I.R.B. 157 January 2, 2001

INDEX
additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(9), 9.03, 11.03, 11.04
closing agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.03, 6.06(4), 9.02(4), 9.02(15), 13.04
conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(9), 9.03(5), 12.01-.08, 13.09(2), 14.02(2)
disclose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(9)
exempt organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 6.01
expedited handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.03(3)
extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 6.02, 6.04, 11.04, 12.01, 12.06
fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.03(4), 11.04
fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(14), 11.04(5)
hand delivered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.04(1)
information letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.07, 8.01, 15.03
no rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 8, 15.02
perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(13), 11.04, 11.06
power of attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(12), 9.03(2)
reliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.09, 11.02, 12.07, 13, 14
representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.09, 9.02(10)-(11), 9.03(2)
retroactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 11.02, 12.04, 12.07, 13, 14
revenue ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 3.08, 6.07, 13.04, 13.09(1)
section 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(9), 13.02
status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.07
technical advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 7.08, 13.03, 13.09(1), 14
telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.02(1), 11.04, 12.01, 12.08
where to send . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.04
withdraw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sec. 9.08
January 2, 2001 158 2001–1 I.R.B.

APPENDIX A
SAMPLE FORMAT FOR A LETTER RULING REQUEST
(Insert the date of request)

Commissioner, TE/GE
Attention: T:EP:RA
P.O. Box 27063
McPherson Station
Dear Sir or Madam:
(Insert the name of the taxpayer) (the “Taxpayer”) requests a ruling on the proper treatment of (insert the subject matter of the let-
ter ruling request) under § (insert the number) of the Internal Revenue Code.
[If the taxpayer is requesting expedited handling, the letter ruling request must contain a statement to that effect. This statement
must explain the need for expedited handling. See section 9.03(3).]
A. STATEMENT OF FACTS
1. Taxpayer Information
[Provide the statements required by sections 9.02(1)(a), (b), (c), and (d) of Rev. Proc. 2001–4, 2001–1 I.R.B. 121. (Hereafter, all ref-
erences are to Rev. Proc. 2001–4 unless otherwise noted.)]
For example, a taxpayer that maintains a qualified employee retirement plan and files an annual Form 5500 series of returns may
include the following statement to satisfy sections 9.02(1)(a), (b), (c), and (d):
The Taxpayer is a construction company with principal offices located at 100 Whatever Drive, Wherever, Maryland 12345, and its
telephone number is (123) 456-7890. The Taxpayer’s federal employer identification number is 00–1234567. The Taxpayer uses
the Form 5500 series of returns on a calendar year basis to report its qualified employee retirement plan and trust.
2. Detailed Description of the Transaction.
[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling re-
quest. This statement must include a detailed description of the transaction, including material facts in any accompanying docu-
ments, and the business reasons for the transaction. See sections 9.02(1)(c), 9.02(1)(d), and 9.02(2).]
B. RULING REQUESTED
[The ruling request should contain a concise statement of the ruling requested by the taxpayer.]
C. STATEMENT OF LAW
[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion, including any authorities
believed to be contrary to the position advanced in the ruling request. This statement must also identify any pending legislation that
may affect the proposed transaction. See sections 9.02(6), 9.02(7), and 9.02(8).]
D. ANALYSIS
[The ruling request must contain a discussion of the facts and an analysis of the law. See sections 9.02(3), 9.02(6), 9.02(7), and
9.02(8).]
E. CONCLUSION
[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]
2001–1 I.R.B. 159 January 2, 2001

F. PROCEDURAL MATTERS
1. Rev. Proc. 2001–4 Statements
a. [The statement required by section 9.02(4).]
b. [The statement required by section 9.02(5).]
c. [The statement required by section 9.02(6) regarding whether the law in connection with the letter ruling request is uncertain
and whether the issue is adequately addressed by relevant authorities.]
d. [The statement required by section 9.02(7) when the taxpayer determines that there are no contrary authorities.]
e. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should contain
a statement to that effect. See section 9.03(5).]
f. [If the taxpayer is requesting the letter ruling to be issued by fax, the ruling request should contain a statement to that effect.
This statement must also contain a waiver of any disclosure violations resulting from the fax transmission. See section
9.03(4).]
g. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement to
that effect. See section 9.03(1).]
2. Administrative
a. A Power of Attorney is enclosed. [See sections 9.02(12) and 9.03(2).]
b. The deletions statement and checklist required by Rev. Proc. 2001–4 are enclosed. [See sections 9.02(9) and 9.02(17).]
c. The required user fee is enclosed. [See section 9.02(14).]
Very truly yours,
(Insert the name of the taxpayer or the taxpayer’s autho-

rized representative)
By:
___________________________ ________________
Signature Date
___________________________
Typed or printed name
of person signing request
DECLARATION: [See section 9.02(13).]
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best of my
knowledge and belief, the request contains all the relevant facts relating to the request and such facts are true, correct, and complete.
(Insert the name of the taxpayer)

By:
________________________________ ______________________________ _______________
Signature Title Date
________________________________
person signing declaration
January 2, 2001 160 2001–1 I.R.B.

APPENDIX B
CHECKLIST
IS YOUR RULING REQUEST COMPLETE?
INSTRUCTIONS
The Service will be able to respond more quickly to your letter ruling request if it is carefully prepared and complete. To ensure
that your request is in order, use this checklist. Complete the five items of information requested before the checklist. Answer each
question by circling “Yes,” “No,” or “N/A.” When a question contains a place for a page number, insert the page number (or num-
bers) of the request that gives the information called for by a yes answer to a question. Sign and date the checklist (as taxpayer or
authorized representative) and place it on top of your request.
If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with the re-
quest, or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist is
submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will not
be cause for returning your request or deferring substantive consideration of the request. However, you should still complete
as much of the checklist as possible and submit it with your request.
TAXPAYER’S NAME __________________________________________________________
TAXPAYER’S I.D. No. __________________________________________________________
ATTORNEY/P.O.A. _____________________________________________________________
PRIMARY CODE SECTION ______________________________________________________
CIRCLE ONE ITEM

Yes No N/A 1. Does your request involve an issue under the jurisdiction of the Commissioner, Tax Exempt and Govern-
ment Entities Division? See section 5 of Rev. Proc. 2001–4, 2001–1 I.R.B. 121, for issues under the juris-
diction of other offices. (Hereafter, all references are to Rev. Proc. 2001–4 unless otherwise noted.)
Yes No N/A 2. If your request involves a matter on which letter rulings are not ordinarily issued, have you given com-
pelling reasons to justify the issuance of a private letter ruling? Before preparing your request, you may
want to call the office responsible for substantive interpretations of the principal Internal Revenue Code sec-
tion on which you are seeking a letter ruling to discuss the likelihood of an exception. The appropriate office
to call for this information may be obtained by calling (202) 283-9660 (Employee Plans matters), or (202)
283-2300 (Exempt Organizations matters) (not toll-free calls).
Yes No N/A 3. If the request involves an employee plans qualification matter under § 401(a), § 409, or § 4975(e)(7),
Page ____ have you demonstrated that the request satisfies the three criteria in section 6.03 for a headquarters ruling?
Yes No N/A 4. If the request deals with a completed transaction, have you filed the return for the year in which the
Page ____ transaction was completed? See sections 6.01 and 6.02.
Yes No 5. Are you requesting a letter ruling on a hypothetical situation or question? See section 8.02.
Yes No 6. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 8.02.
Yes No 7. Are you requesting the letter ruling for only part of an integrated transaction? See section 8.03.
Yes No 8. Have you submitted another letter ruling request for the transaction covered by this request?
Yes No 9. Are you requesting the letter ruling for a business, trade, industrial association, or similar group concern-
ing the application of tax law to its members? See section 6.07.
2001–1 I.R.B. 161 January 2, 2001

Yes No 10. Have you included a complete statement of all the facts relevant to the transaction? See section 9.02(1).
Pages ____
Yes No N/A 11. Have you submitted with the request true copies of all wills, deeds, plan documents, and other docu-
ments relevant to the transaction, and labelled and attached them in alphabetical sequence? See section
9.02(2).
Yes No 12. Have you included, rather than merely by reference, all material facts from the documents in the
Page ____ request? Are they accompanied by an analysis of their bearing on the issues that specifies the document pro-
visions that apply? See section 9.02(3).
Yes No 13. Have you included the required statement regarding whether the same issue in the letter ruling request is
Page ____ in an earlier return of the taxpayer or in a return for any year of a related taxpayer? See section 9.02(4).
Yes No 14. Have you included the required statement regarding whether the Service previously ruled on the same or
Page ____ similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 9.02(5).
Yes No 15. Have you included the required statement regarding whether the taxpayer, a related taxpayer, a pre-
Page____ decessor, or any representatives previously submitted the same or similar issue but withdrew it before the
letter ruling was issued? See section 9.02(5).
Yes No 16. Have you included the required statement regarding whether the law in connection with the request is
Page ____ uncertain and whether the issue is adequately addressed by relevant authorities? See section 9.02(6).
Yes No 17. Have you included the required statement of relevant authorities in support of your views? See section
Pages ____ 9.02(6).
Yes No N/A 18. Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations,
Pages ____ notices, revenue rulings, or revenue procedures you determined to be contrary to the position advanced? See
section 9.02(7), which states that taxpayers are encouraged to inform the Service of such authorities.
Yes No N/A 19. If you determined that there are no contrary authorities, have you included a statement to this effect in
Page____ your request? See section 9.02(7).
Yes No N/A 20. Have you included in your request a statement identifying any pending legislation that may affect the
Page ____ proposed transaction? See section 9.02(8).
Yes No 21. Is the request accompanied by the deletions statement required by § 6110? See section 9.02(9).
Yes No N/A 22. Have you (or your authorized representative) signed and dated the request? See section 9.02(10).
Page ____
Yes No N/A 23. If the request is signed by your representative, or if your representative will appear before the Service in
connection with the request, is the request accompanied by a properly prepared and signed power of attorney
with the signatory’s name typed or printed? See section 9.02(12).
Yes No N/A 24. Have you included, signed and dated, the penalties of perjury statement in the form required by section
Page ____ 9.02(13)?
Yes No N/A 25. Have you included the correct user fee with the request and made your check or money order payable to
the United States Treasury ? See section 9.02(14) and Rev. Proc. 2001–8, page 239, this Bulletin, for the
correct amount and additional information on user fees.
Yes No N/A 26. Are you submitting your request in duplicate if necessary? See section 9.02(15).
Yes No N/A 27. If you are requesting separate letter rulings on different issues involving one factual situation, have you
Pages ____ included a statement to that effect in each request? See section 9.03(1).
January 2, 2001 162 2001–1 I.R.B.

Yes No N/A 28. If you want the original of the ruling to be sent to a representative, does the power of attorney contain a
statement to that effect? See section 9.03(2).
Yes No N/A 29. If you do not want a copy of the letter ruling to be sent to any representative, does the power of attorney
contain a statement to that effect? See section 9.03(2).
Yes No N/A 30. If you have more than one representative, have you designated whether the second representative listed
Page ____ on the power of attorney is to receive a copy of the letter ruling? See section 9.03(2).
Yes No N/A 31. If you want your letter ruling request to be processed ahead of the regular order or by a specific date,
have you requested expedited handling in the form required by section 9.03(3) and stated a compelling need
for such action in the request?
Yes No N/A 32. If you are requesting that a copy of the letter ruling be issued by facsimile (fax) transmission, have you
Page ____ included a statement containing a waiver of any disclosure violations resulting from the fax transmission?
See section 9.03(4).
Yes No N/A 33. If you want to have a conference on the issues involved in the request, have you included a request for
Page ____ conference in the ruling request? See section 9.03(5).
Yes No N/A 34. If your request is covered by any of the guideline revenue procedures or other special requirements
listed in section 10 of Rev. Proc. 2001–4, have you complied with all of the requirements of the applicable
revenue procedure?
Yes No N/A 35. If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all of
Page ____ the requirements in section 13.09 or section 14.02, whichever is applicable?
Yes No N/A 36. Have you addressed your request to the appropriate office listed in section 9.04? Improperly addressed
requests may be delayed (sometimes for over a week) in reaching the appropriate office for initial process-
ing.
_______________________________________ ___________________________________________ _______________

Signature Title or authority Date
2001–1 I.R.B. 163 January 2, 2001

Rev. Proc. 2001–5
TABLE OF CONTENTS

IS THE PURPOSE OF
THIS REVENUE
PROCEDURE?

CHANGES HAVE BEEN
MADE TO REV. PROC. 2000–5?

IS TECHNICAL ADVICE?
SECTION 4. ON WHAT p. 169 .01 Issues under the jurisdiction of the Commissioner, Tax Exempt and Govern-
ISSUES MAY OR MUST ment Entities Division
TECHNICAL ADVICE BE
REQUESTED UNDER .02 Farmers’ cooperatives
THIS PROCEDURE?
.03 Basis for requesting technical advice
.04 Areas of mandatory technical advice
.05 Special procedures for certain conversions
SECTION 5. ON WHAT p. 170 .01 Matters (other than farmers’ cooperatives) under the jurisdiction of the As-IS-
SUES MUST TECHNICAL sociate Chief Counsel (Corporate), the Associate Chief Counsel (Financial AD-
VICE BE REQUESTED Institutions & Products),the Associate Chief Counsel (Income Tax &
UNDER DIFFERENT Accounting), the Associate Chief Counsel (International) the Associate Chief
PROCEDURES? Counsel (Passthroughs & Special Industries), the Associate Chief Counsel
(Procedure & Administration), and the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities)
.02 Alcohol, tobacco, and firearms taxes
.03 Excise taxes
SECTION 6. MAY p. 170 .01 A § 301.9100–1 request is a letter ruling request

TECHNICAL ADVICE BE
REQUESTED FOR A .02 Statute of limitations
§ 301.9100–1 REQUEST DURING
THE COURSE OF AN .03 Address to send a § 301.9100–1 request
EXAMINATION?
.04 If the return is being examined or considered by an appeals office or a fed-
eral court, the taxpayer must notify Employee Plans Technical or Exempt
Organizations Technical who will notify the Employee Plans Examinations
Area manager or Exempt Organizations Examinations Area manager, ap-
peals office or government counsel
SECTION 7. WHO IS p. 172 .01 An Employee Plans Examinations Area manager, Exempt Organizations
RESPONSIBLE FOR Area manager, Employee Plans Determinations manager, Exempt Organizations
REQUESTING TECHNICAL Determinations manager, or an Appeals Area Director, SB/SE-TE/GE or Appeals
ADVICE? Area Director, LMSB, determines whether to request technical advice.
.02 Taxpayer may ask that issue be referred for technical advice
January 2, 2001 164 2001–1 I.R.B.

SECTION 8. WHEN SHOULD p. 172 .01 Uniformity of position lacking
TECHNICAL ADVICE BE
REQUESTED? .02 When technical advice can be requested
.03 At the earliest possible stage
SECTION 9. HOW ARE p. 173 .01 Pre-submission conference generally is permitted when a request for
PRE-SUBMISSION technical advice is likely and all parties agree to request the conference
.02 Purpose of pre-submission conference
.03 Request for pre-submission conference must be submitted in writing by the

EP or EO Examinations or the EP or EO Determinations or the appeals office
.04 Group will contact the EP or EO Examinations or the EP or EO Determina-

tions or the appeals office to arrange the pre-submission conference
.05 Pre-submission conference generally held in person
.06 Certain information required to be submitted to EP or EO Technical prior to

the pre-submission conference
.07 Pre-submission conference may not be taped
.08 Discussion of substantive issues is not binding on the Service
SECTION 10. WHAT MUST p. 174 .01 Statement of issues, facts, law, and arguments
BE INCLUDED IN THE
REQUEST FOR .02 Statement pertaining to statute of limitations
TECHNICAL ADVICE?
.03 General provisions of §§ 6104 and 6110 of the Internal Revenue Code
.04 Application of § 6104
.05 Statement identifying information to be deleted from public inspection
.06 Transmittal Form 5565, Request for Technical Advice - EP/EO
.07 Number of copies of request to be submitted
.08 Power of attorney
.09 Case files
SECTION 11. HOW ARE p. 176 .01 Taxpayer notified

REQUESTS HANDLED?
.02 Conference offered
.03 If the taxpayer disagrees with the Service’s statement of facts
.04 If the Service disagrees with the taxpayer’s statement of facts
.05 If the taxpayer has not submitted the required deletions statement
.06 Criminal or civil fraud cases
2001–1 I.R.B. 165 January 2, 2001

SECTION 12. HOW DOES A p. 178 .01 Taxpayer notified of decision not to seek technical advice
TAXPAYER APPEAL AN EP
OR EO MANAGER’S OR .02 Taxpayer may appeal decision not to seek technical advice
AN APPPEALS AREA DIRECTOR’S
DECISION NOT TO SEEK .03 EP or EO Examinations Area manager or EP or EO Determinations
TECHNICAL ADVICE? manager or the applicable appeals office determines whether technical advice will
be sought
.04 Decision may be reviewed but not appealed
SECTION 13. HOW ARE p. 180 .01 Taxpayer notified

ADVICE WITHDRAWN? .02 EP or EO Technical may provide views
SECTION 14. HOW ARE p. 180 .01 If requested, offered to the taxpayer when adverse technical advice proposed
.02 Normally held within 21 days of contact with the taxpayer
.03 21-day period may be extended if justified and approved
.04 Denial of extension cannot be appealed
.05 Entitled to one conference of right
.06 Conference may not be taped
.07 Conference may be delayed to address a request for relief under § 7805(b)
.08 Service makes tentative recommendations
.09 Additional conferences may be offered
.10 Additional information submitted after the conference

phone
SECTION 15. HOW IS p. 183 .01 Taxpayer or the taxpayer’s representative may request status from the EP or
STATUS OF REQUEST EO Examinations or the EP or EO Determinations or the appeals office
OBTAINED?
.02 EP or EO Technical will give status updates to the EP or EO Examinations
or the EP or EO Determinations or the applicable Appeals Area Director
SECTION 16. HOW DOES p. 183 .01 Delegates authority to group managers
EP OR EO TECHNICAL
PREPARE THE TECHNICAL .02 Determines whether request has been properly made
ADVICE MEMORANDUM?
.03 Contacts the EP or EO Examinations or the EP or EO Determinations or the
appeals office to discuss issues
.04 Informs the EP or EO Examinations or the EP or EO Determinations or the

appeals office if any matters in the request have been referred to another
group or office

appeals office if additional information is needed

appeals office of the tentative conclusion
January 2, 2001 166 2001–1 I.R.B.
.07 If a tentative conclusion has not been reached, gives date estimated for ten-
tative conclusion
.08 Advises the EP or EO Examinations or the EP or EO Determinations or the

appeals office that tentative conclusion is not final
.09 Advises the EP or EO Examinations or the EP or EO Determinations or the

appeals office of final conclusions
.10 If needed, requests additional information
.11 Requests taxpayer to send additional information to EP or EO Technical and a

copy to the EP or EO Examinations or the EP or EO Determinations or the appeals
office
.12 Informs the taxpayer when requested deletions will not be made
.13 Prepares reply in two parts
.14 Routes replies to appropriate office
SECTION 17. HOW DOES p. 187 .01 Generally applies advice in processing the taxpayer’s case
EP OR EO EXAMINATIONS
OR EP OR EO .02 Discussion with the taxpayer
DETERMINATIONS
OR AN APPEALS OFFICE .03 Gives copy to the taxpayer
USE THE TECHNICAL
ADVICE? .04 Taxpayer may protest deletions not made
.05 When no copy is given to the taxpayer
SECTION 18. WHAT IS THE p. 188 .01 Applies only to the taxpayer for whom technical advice was requested
EFFECT OF TECHNICAL
ADVICE? .02 Usually applies retroactively
.03 Generally applied retroactively to modify or revoke prior technical advice
.04 Applies to continuing action or series of actions until specifically with-

drawn, modified or revoked
.05 Applies to continuing action or series of actions until material facts change
.06 Does not apply retroactively under certain conditions
SECTION 19. HOW MAY p. 189 .01 Commissioner has discretionary authority under § 7805(b)
RETROACTIVE EFFECT
BE LIMITED? .02 Taxpayer may request Commissioner to exercise authority
.03 Form of request to limit retroactivity — before an examination
.04 Form of request to limit retroactivity — during course of examination
.05 Form of request to limit retroactivity — technical advice that does not mod-
ify or revoke prior memorandum
.06 Taxpayer’s right to a conference
.07 Exhaustion of administrative remedies — employee plans determination let-

ter requests
2001–1 I.R.B. 167 January 2, 2001
.08 Exhaustion of administrative remedies — exempt organization matters

PROCEDURE ON OTHER
DOCUMENTS?
SECTION 21. EFFECTIVE p. 191

DATE

REDUCTION ACT
INDEX p. 192
SECTION 1. WHAT IS THE This revenue procedure explains when and how Employee Plans Technical or Exempt
PURPOSE OF THIS REVENUE Organizations Technical gives technical advice to an Employee Plans (EP) Examinations
PROCEDURE? Area manager, an Exempt Organizations (EO) Examinations Area manager, an Employee
Plans (EP) Determinations manager, an Exempt Organizations (EO) Determinations manag-
er, or an Appeals Area Director, SB/SE-TE/GE in the employee plans areas (including actu-
arial matters) and exempt organizations areas. It also explains the rights a taxpayer has when
an EP or EO Examinations Area manager, an EP or EO Determinations manager, or an
Appeals Area Director, SB/SE-TE/GE requests technical advice regarding a tax matter.
SECTION 2. WHAT CHANGES .01 This revenue procedure is a general update of Rev. Proc. 2000–5, 2000–1 I.R.B. 158,
HAVE BEEN MADE TO which contains the general procedures for technical advice requests for matters within the
REV. PROC. 2000–5? jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. While
some of the changes to Rev. Proc. 2000–5 involve minor revisions, such as updating cita-
tions to other revenue procedures, this revenue procedure also contains changes made by
the IRS Restructuring and Reform Act of 1998, Pub. L. 105-206 that are now in place.
Taxpayers and Internal Revenue Service personnel may rely on the names, addresses and
symbols in this revenue procedure until further published notice.
.02 The definition of a taxpayer in section 3 and the reference in section 5 to the use of
another revenue procedure are clarified to reflect that the Commissioner, Tax Exempt and
Government Entities, has examination jurisdiction but not interpretative authority with
respect to § 457 plans.
.03 Section 6.01(3) of Rev. Proc. 2000–5 pertaining to § 301.9100–1 letter rulings and
the availability of a drop box has been deleted because of security concerns regarding, and
the lack of use of, the drop box.
SECTION 3. WHAT IS “Technical advice” means advice or guidance in the form of a memorandum furnished
TECHNICAL ADVICE? by the Employee Plans Technical or Exempt Organizations Technical offices, (hereinafter
referred to as “EP or EO Technical”), upon the request of an EP or EO Examinations Area
manager, an EP or EO Determinations manager or an Appeals Area Director, SB/SE-
TE/GE, submitted in accordance with the provisions of this revenue procedure in response
to any technical or procedural question that develops during any proceeding on the inter-
pretation and proper application of tax law, tax treaties, regulations, revenue rulings,
notices or other precedents published by the headquarters office to a specific set of facts.
(The references in this revenue procedure to an Appeals Area Director, SB/SE-TE/GE
include, when appropriate, an Appeals Area Director, LMSB, a Deputy Appeals Area
Director, LMSB, a Deputy Appeals Area Director, SB/SE-TE/GE or an Appeals Team
Manager.) Such proceedings include (1) the examination of a taxpayer’s return, (2) con-
sideration of a taxpayer’s claim for refund or credit, (3) a taxpayer’s request for a deter-
mination letter, (4) any other matter involving a specific taxpayer under the jurisdiction of
EP or EO Examinations, EP or EO Determinations, or an appeals office or (5) processing
and considering nondocketed cases of a taxpayer in an appeals office. However, they do
not include cases in which the issue in the case is in a docketed case for any year.
January 2, 2001 168 2001–1 I.R.B.
For purposes of technical advice, the term “taxpayer” includes all persons subject to any
provision of the Internal Revenue Code (including tax-exempt entities such as govern-
mental units which issue municipal bonds within the meaning of § 103), and when appro-
priate, their representatives. However, the instructions and the provisions of this revenue
procedure do not apply to requests for technical advice involving any matter pertaining to
tax-exempt bonds or to § 457 plans maintained by state or local governments or tax-
exempt organizations or to mortgage credit certificates. Instead, in those instances the pro-
cedures under Rev. Proc. 2001–2, page 79, this Bulletin must be followed.
Technical advice resolves complex issues and helps establish and maintain consistent
holdings throughout the Internal Revenue Service. An EP or EO Examinations, an EP or
EO Determinations or an appeals office may raise an issue in any tax period, even though
technical advice may have been asked and furnished for the same or similar issue for
another tax period.
Technical advice does not include legal advice furnished to the EP or EO Examinations
or the EP or EO Determinations or the appeals office in writing or orally, other than advice
furnished pursuant to this revenue procedure. In accordance with section 12.01 of this rev-
enue procedure, a taxpayer’s request for referral of an issue for technical advice will not
be denied merely because EP or EO Technical has provided legal advice, other than advice
furnished pursuant to this revenue procedure, to the EP or EO Examinations or the EP or
EO Determinations or the appeals office on the matter.
SECTION 4. ON WHAT
ISSUES MAY OR MUST
TECHNICAL ADVICE BE
REQUESTED UNDER THIS
PROCEDURE?
Issues under the jurisdiction .01 Generally, the instructions of this revenue procedure apply to requests for technical
of the Commissioner, Tax advice on any issue under the jurisdiction of the Commissioner, Tax Exempt and
Exempt and Government Government Entities Division.
Entities Division
Farmers’ cooperatives .02 If an EP or EO Examinations, an EP or EO Determinations, an appeals office or a

taxpayer requests technical advice on a determination letter under § 521 of the Code, the
procedures under this revenue procedure, Rev. Proc. 90–27, 1990–1 C.B. 514, as modified
by Rev. Proc. 2001–8, page 239 as well as § 601.201(n) of the Statement of Procedural
Rules, must be followed.
Basis for requesting .03 Requests for technical advice are encouraged on any technical or procedural ques-
technical advice tions arising in connection with any case of the type described in section 3 at any stage of
the proceedings in an EP or EO Examinations, an EP or EO Determinations or an appeals
office that cannot be resolved on the basis of law, regulations, or a clearly applicable rev-
enue ruling or other published precedent.
Areas of mandatory .04 Requests for § 7805(b) relief are mandatory technical advice with respect to all
technical advice exempt organizations and employee plans matters.
Except for those exemption application cases handled in EO Technical in accordance

with section 6.02 of Rev. Proc. 90–27, EO Examinations, EO Determinations and appeals
offices are required to request technical advice on their exempt organization cases con-
cerning qualification for exemption or foundation status for which there is no published
precedent or for which there is reason to believe that non-uniformity exists.
Regarding employee plans matters, a request for technical advice is required in cases
concerning (1) proposed adverse or proposed revocation letters on collectively-bargained
plans, (2) plans for which the Service is proposing to issue a revocation letter because of
2001–1 I.R.B. 169 January 2, 2001

certain fiduciary actions that violate the exclusive benefit rule of § 401(a) of the Code and
are subject to Part 4 of Subtitle B of Title I of the Employee Retirement Income Security
Act of 1974, Pub. L. 93-406, 1974–3 C.B. 1, 43, (3) amendments to defined contribution
plans pursuant to Rev. Proc. 94–41, 1994–1 C.B. 711, in connection with a waiver of the
minimum funding standard and a request for a determination letter (see section 15 of Rev.
Proc. 2001–6, page 194, this Bulletin, and section 3.04 of Rev. Proc. 94–41), (4) termina-
tion/reestablishment and spinoff-termination cases in which EP Examinations or EP
Determinations proposes that the Implementation Guidelines are not applicable, (5) a sit-
uation in which the employer has had a prior termination/reestablishment or spinoff-ter-
mination within 15 years of the time of the transaction or (6) any determination letter case
or any examination case involving a plan amendment to convert an existing defined ben-
efit formula to a cash balance type benefit formula that was not previously subject to tech-
nical advice on the conversion.
Special procedures for .05 In the instance of section 4.04(6) above, the requirements of the first sentence of
certain conversions section 10.01 below will be deemed met by the Service by the use of the following (or simi-
lar) statement: Technical advice is requested on the effect on the plan’s qualified status of the
conversion of an existing defined benefit plan formula to a cash balance type benefit formu-
la.
SECTION 5. ON WHAT
ISSUES MUST TECHNICAL
ADVICE BE REQUESTED
UNDER DIFFERENT
PROCEDURES?
Matters (other than farmers’ .01 All procedures for obtaining technical advice on issues (other than farmers’ coop-
cooperatives) under the jurisdiction eratives) under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate
of the Associate Chief Counsel Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income
(Corporate), the Associate Chief Tax & Accounting), the Associate Chief Counsel (International), the Associate Chief
Counsel (Financial Institutions & Counsel (Passthroughs & Special Industries), the Associate Chief Counsel (Procedure &
Products), the Associate Chief Administration), and the Division Counsel/Associate Chief Counsel (TE/GE) including
Counsel (Income Tax & any matter pertaining to tax-exempt bonds or mortgage credit certificates, § 457 plans,
Accounting), the Associate § 526 of the Code (shipowners’ protection and indemnity associations), § 528 (certain
Chief Counsel (International), homeowners’ associations) and issues involving the interpretation or application of the
the Associate Chief Counsel federal income tax laws and income tax treaties relating to international transactions are
(Passthroughs & Special Industries), contained in Rev. Proc. 2001–2.
the Associate Chief Counsel
(Procedure & Administration),
and the Division Counsel/Associate
Chief Counsel (TE/GE)
Alcohol, tobacco, and .02 Procedures for obtaining technical advice specifically applicable to federal alcohol,
firearms taxes tobacco, and firearms taxes under subtitle E of the Code are under the jurisdiction of the
Bureau of Alcohol, Tobacco and Firearms.
Excise taxes .03 Technical advice procedures regarding excise taxes (other than excise taxes imposed
under Chapters 41, 42 and 43 of the Code), and employment taxes that employee plans and
exempt organizations are subject to, are set forth in Rev. Proc. 2001–2.
SECTION 6. MAY TECHNICAL

ADVICE BE REQUESTED FOR
A § 301.9100–1 REQUEST
DURING THE COURSE OF
AN EXAMINATION?
A § 301.9100–1 request is .01 Except with regard to exemption application matters involving §§ 505(c) and 508,
a letter ruling request requests for an extension of time for making an election or other application for relief under
§ 301.9100–1 of the Procedure and Administration Regulations made after the examination of
January 2, 2001 170 2001–1 I.R.B.
the taxpayer’s return has begun or made after the issues in the return are being considered by
an appeals office or a federal court are letter ruling requests. Therefore, § 301.9100–1 requests
should be submitted pursuant to Rev. Proc. 2001–4, page 121, this Bulletin, and require pay-
ment of the applicable user fee listed in section 6 of Rev. Proc. 2001–8.
Statute of limitations .02 The running of any applicable period of limitations is not suspended for the period
during which a § 301.9100–1 request has been filed. See § 301.9100–3(d)(2). If the peri-
od of limitations on an assessment under § 6501(a) for the taxable year in which an elec-
tion should have been made, or any taxable year that would have been affected by the elec-
tion had it been timely made, will expire before receipt of a § 301.9100–1 letter ruling, the
Service ordinarily will not issue a § 301.9100–1 ruling. See § 301.9100–3(c)(1)(ii).
Therefore, the taxpayer must secure a consent under § 6501(c)(4) to extend the period of
limitations on assessment. Note that the filing of a protective claim for refund under
§ 6511 does not extend the period of limitations on assessment. If § 301.9100–1 relief is
granted, the Service may require the taxpayer to consent to an extension of the period of
limitations for assessment. See § 301.9100–3(d)(2).
Address to send a .03 Requests made under § 301.9100–1, pursuant to Rev. Proc. 2001–4, together with
§ 301.9100–1 request the appropriate user fee, must be submitted to the Internal Revenue Service by the taxpayer
and addressed as follows:
Requests involving employee plans matters:

Commissioner, Tax Exempt and Government Entities
Attn: T:EP:RA
P.O. Box 27063
McPherson Station
Requests involving exempt organization matters:

Commissioner, Tax Exempt and Government Entities
Attn: T:EO:RA
P.O. Box 27720
McPherson Station
A § 301.9100–1 request may also be hand delivered between the hours of 8:15 a.m. and
5:00 p.m. where a receipt will be given at the Courier’s Desk. In each instance, the pack-
age should be marked RULING REQUEST SUBMISSION. See Rev. Proc. 2001–8 for
the appropriate user fee. Deliver to:
Courier’s Desk
Attn: T:AS
If return is being examined or .04 If the taxpayer’s return for the taxable year in which an election should have been
considered by an appeals office made or any taxable year that would have been affected by the election had it been timely
or a federal court, the taxpayer made is being examined by EP or EO Examinations or the issues in the return are being
must notify EP or EO Technical considered by an appeals office or a federal court, the taxpayer must notify EP or EO
who will notify the EP or EO Technical. See, § 301.9100–3(e)(4)(i) and section 6.04 of Rev. Proc. 2001–4. EP or EO
Examinations Area manager, Technical will notify the appropriate EP or EO Examinations Area manager or Appeals
Appeals Area Director, Area Director, SB/SE-TE/GE, or government counsel considering the return that a request
SB/SE-TE/GE or for § 301.9100–1 relief has been submitted. The EP or EO specialist, appeals officer or
government counsel government counsel is not authorized to deny consideration of a request for § 301.9100–1
2001–1 I.R.B. 171 January 2, 2001
relief. The letter ruling will be mailed to the taxpayer and a copy will be sent to the appro-
priate EP or EO Examinations Area manager, or Appeals Area Director, SB/SE-TE/GE, or
government counsel.
SECTION 7. WHO IS
RESPONSIBLE FOR
REQUESTING TECHNICAL
ADVICE?
EP or EO Examinations Area .01 The EP or EO Examinations Area manager, the EP or EO Determinations manager
manager or EP or EO or the Appeals Area Director, SB/SE-TE/GE, determines whether to request technical
Determinations manager or advice on any issue being considered. Each request must be submitted through proper
Appeals Area Director, channels and signed by a person who is authorized to sign for the EP or EO Examinations
SB/SE-TE/GE determines Area manager, the EP or EO Determinations manager or the Appeals Area Director,
whether to request technical advice SB/SE-TE/GE. The mandatory technical advice described in section 4.04(3) of this rev-
enue procedure, for cases concerning amendments to defined contribution plans in con-
nection with a waiver of the minimum funding standard and a request for a determination
letter, is treated as if it had been a request for technical advice submitted by the EP
Determinations manager. See section 15 of Rev. Proc. 2001–6 and section 3.04 of Rev.
Proc. 94–41 for the procedural rules applicable to this particular mandatory technical
advice.
Taxpayer may ask that issue .02 While a case is under the jurisdiction of EP or EO Examinations, EP or EO
be referred for technical advice Determinations, or an Appeals Area Director, SB/SE-TE/GE, a taxpayer may request that
an issue be referred to the EP or EO Technical office for technical advice.
SECTION 8. WHEN SHOULD

TECHNICAL ADVICE BE
REQUESTED?
Uniformity of position lacking .01 Technical advice should be requested when there is a lack of uniformity regarding
the disposition of an issue or when an issue is unusual or complex enough to warrant con-
sideration by EP or EO Technical
When technical advice can .02 The provisions of this revenue procedure apply only to a case under the jurisdiction
be requested of EP or EO Examinations, EP or EO Determinations or an Appeals Area Director, SB/SE-
TE/GE. Technical advice may also be requested on issues considered in a prior appeals
disposition, not based on mutual concessions for the same tax period of the same taxpay-
er, if the appeals office that had the case concurs in the request.
EP or EO Examinations or EP or EO Determinations may not request technical advice

on an issue if an appeals office is currently considering an identical issue of the same tax-
payer (or of a related taxpayer within the meaning of § 267 or a member of an affiliated
group of which the taxpayer is also a member within the meaning of § 1504). A case
remains under the jurisdiction of EP or EO Examinations or EP or EO Determinations
even though an appeals office has the identical issue under consideration in the case of
another taxpayer (not related within the meaning of § 267 or § 1504) in an entirely differ-
ent transaction. With respect to the same taxpayer or the same transaction, when the issue
is under the jurisdiction of an appeals office, and the applicability of more than one kind
of federal tax is dependent upon the resolution of that issue, EP or EO Examinations or EP
or EO Determinations may not request technical advice on the applicability of any of the
taxes involved.
EP or EO Examinations or EP or EO Determinations or an Appeals Area Director,

SB/SE-TE/GE, also may not request technical advice on an issue if the same issue of the
same taxpayer (or of a related taxpayer within the meaning of § 267 or a member of an
affiliated group of which the taxpayer is also a member within the meaning of § 1504) is
January 2, 2001 172 2001–1 I.R.B.

in a docketed case for the same taxpayer (or for a related taxpayer or a member of an affil-
iated group of which the taxpayer is also a member) for any taxable year.
At the earliest possible stage .03 Once an issue is identified, all requests for technical advice should be made at the
earliest possible stage in any proceeding. The fact that the issue is raised late in the exam-
ination, determination or appeals process should not influence, however, EP or EO
Examinations’, EP or EO Determinations’ or an Appeals Area Director’s, SB/SE-TE/GE
decision to request technical advice.
SECTION 9. HOW ARE

PRE-SUBMISSION
Pre-submission conference .01 In an effort to promote expeditious processing of requests for technical advice, EP
generally is permitted when a or EO Technical generally will meet with the EP or EO Examinations or the EP or EO
request for technical advice is Determinations or the appeals office and the taxpayer prior to the time a request for tech-
likely and all parties agree to nical advice is submitted to EP or EO Technical. In cases involving very complex issues,
request the conference the EP or EO Examinations or the EP or EO Determinations or the appeals office and the tax-
payer are encouraged to request a pre-submission conference. A request for a pre-submission
conference should be made, however, only after the EP or EO Examinations or the EP or EO
Determinations or the appeals office determines that it will likely request technical advice and
only after all parties agree that a pre-submission conference should be requested.
Purpose of pre-submission .02 A pre-submission conference is intended to facilitate agreement between the parties
conference as to the appropriate scope of the request for technical advice, the factual information to
be included in the request for technical advice, any collateral issues that either should or
should not be included in the request for technical advice, and any other substantive or pro-
cedural considerations that will allow EP or EO Technical to provide the parties with tech-
nical advice as expeditiously as possible.
A pre-submission conference is not intended to create an alternate procedure for deter-

mining the merits of the substantive positions advocated by the EP or EO Examinations or
the EP or EO Determinations or the appeals office or by the taxpayer. The conference is
intended only to facilitate the overall technical advice process.
Request for pre-submission .03 A request for a pre-submission conference must be submitted in writing by the EP
conference must be submitted in or EO Examinations or the EP or EO Determinations or the appeals office. The request
writing by the EP or EO should identify the office expected to have jurisdiction over the request for technical
Examinations or the EP or EO advice. The request should include a brief explanation of the primary issue so that an
Determinations or the appeals office assignment to the appropriate group can be made.
An original and one copy of the request should be submitted to the appropriate address
listed in section 10.06 of this revenue procedure
Group will contact the EP or EO .04 Within 5 working days after it receives the request, the group assigned responsibil-
Examinations or the EP or EO ity for conducting the pre-submission conference will contact the EP or EO
Determinations or the appeals Examinations or the EP or EO Determinations or the appeals office to arrange a mutu-
office to arrange the ally convenient time for the parties to meet in the EP or EO Technical office. The con-
pre-submission conference ference generally should be held within 30 calendar days after the EP or EO Examinations
or the EP or EO Determinations or the appeals office is contacted. The EP or EO
Examinations or the EP or EO Determinations or the appeals office will be responsible for
coordinating with the taxpayer as well as with any other Service personnel whose atten-
dance the EP or EO Examinations or the EP or EO Determinations or the appeals office
believes would be appropriate.
Pre-submission conference .05 Pre-submission conferences generally will be held in person in EP or EO Technical.
generally held in person However, if the EP or EO Examinations or the EP or EO Determinations or the appeals office
personnel are unable to attend the conference, the conference may be conducted by telephone.
2001–1 I.R.B. 173 January 2, 2001

Certain information required to .06 At least 10 working days before the scheduled pre-submission conference, the EP
be submitted to EP or EO or EO Examinations or the EP or EO Determinations or the appeals office and the taxpayer
Technical prior to the should submit to EP or EO Technical a statement of the pertinent facts (including any facts
pre-submission conference in dispute), a statement of the issues that the parties would like to discuss, and any legal
analysis, authorities, or background documents that the parties believe would facilitate EP
or EO Technical’s understanding of the issues to be discussed at the conference. The legal
analysis provided for the pre-submission conference need not be as fully developed as the
analysis that ultimately will accompany the request for technical advice, but it should
allow EP or EO Technical to become reasonably informed regarding the subject matter of
the conference prior to the meeting. The EP or EO Examinations or the EP or EO
Determinations or the appeals office or the taxpayer should ensure that the EP or EO
Technical office receives a copy of any required power of attorney, preferably on Form
2848, Power of Attorney and Declaration of Representative.
Pre-submission conference may .07 Because pre-submission conference procedures are informal, no tape, stenographic,
not be taped or other verbatim recording of a conference may be made by any party.
Discussion of substantive issues .08 Any discussion of substantive issues at a pre-submission conference is advisory
is not binding on the Service only, is not binding on the Service, and cannot be relied upon as a basis for obtaining
retroactive relief under the provisions of § 7805(b).
SECTION 10. WHAT MUST BE

INCLUDED IN THE REQUEST
FOR TECHNICAL ADVICE?
Statement of issues, facts, law, .01 Whether initiated by the taxpayer or by an EP or EO Examinations or an EP or EO
and arguments Determinations or an appeals office, a request for technical advice must include the facts
and the issues for which technical advice is requested, and a written statement clearly stat-
ing the applicable law and the arguments in support of both the Service’s and the taxpay-
er’s positions on the issue or issues.
Taxpayer must submit statement if (1) If the taxpayer initiates the request for technical advice, the taxpayer must submit to
the taxpayer initiates request for the EP or EO specialist or appeals officer, at the time the taxpayer initiates the request,
technical advice a written statement—
(a) stating the facts and the issues;
(b) explaining the taxpayer’s position;
(c) discussing any relevant statutory provisions, tax treaties, court decisions, regula-
tions, revenue rulings, revenue procedures, notices, or any other authority supporting the
taxpayer’s position; and
(d) stating the reasons for requesting technical advice.
If the EP or EO specialist or the appeals officer determines that technical advice will be
requested, the taxpayer’s statement will be forwarded to EP or EO Technical with the
request for technical advice.
Taxpayer is encouraged to (2) If the request for technical advice is initiated by an EP or EO Examinations office
submit statement if Service or by an EP or EO Determinations office or by an appeals office, the taxpayer is encour-
initiates request for aged to submit the written statement described in section 10.01(1) of this revenue proce-
technical advice dure. If the taxpayer’s statement is received after the request for technical advice has been
forwarded to EP or EO Technical, the statement will be forwarded to EP or EO Technical
for association with the technical advice request.
Statement of authorities contrary (3) Whether the request for technical advice is initiated by the taxpayer or by an EP or
to taxpayer’s position EO Examinations office or by an EP or EO Determinations office or by an appeals office,
January 2, 2001 174 2001–1 I.R.B.

the taxpayer is also encouraged to comment on any legislation, tax treaties, regulations,
revenue rulings, revenue procedures, or court decisions contrary to the taxpayer’s position.
If the taxpayer determines that there are no contrary authorities, a statement to this effect
would be helpful. If the taxpayer does not furnish either contrary authorities or a state-
ment 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.
Statement pertaining to statute .02 As part of the request, the EP or EO Examinations or the EP or EO Determinations
of limitations or the appeals office must submit a statement, in addition to the criteria on Form 5565
referred to below, that (1) the applicable statute of limitations has at least 180 calendar
days to run before its expiration or (2) the applicable statute of limitations will run prior
to 180 calendar days from the date a request is transferred to EP or EO Technical and the
case should be processed on an expedited basis. If the EP or EO Examinations or the EP
or EO Determinations or the appeals office obtains an extension of the statute of limita-
tions while the request is being processed in EP or EO Technical, the office obtaining the
extension must also submit a revised statement to EP or EO Technical advising it of the
new expiration date.
If there are less than 61 calendar days remaining before the expiration of the statute of
limitations with respect to a case being processed on an expedited basis, the case will be
returned to the office responsible for statute control of the file unless a decision is made
pursuant to IRM Multifunctional Handbook section 121.2, Statute of Limitations
Handbook that the case can be timely processed. EP or EO Technical will telephone (or
fax notice of) its decision to the requesting EP or EO Examinations or the EP or EO
Determinations or the appeals office and will place a memorandum in the file to reflect
whatever procedural steps have been taken.
General provisions of .03 Generally, § 6104(a)(1)(B) provides that an application filed with respect to: (1) the
§§ 6104 and 6110 qualification of a pension, profit-sharing, or stock bonus plan under § 401(a) or § 403(a)
or an individual retirement arrangement under § 408(a) or § 408(b) will be open to public
inspection pursuant to regulations as will (2) any application filed for an exemption from
tax under § 501(a) of an organization forming part of a plan or account described above.
Generally, § 6110(a) provides that except as provided otherwise, written determinations
(defined in § 6110(b)(1) as rulings, determination letters, technical advice memorandums
and Chief Counsel advice) and any related background file document will be open to pub-
lic inspection pursuant to regulations.
Application of § 6104 .04 The requirements for submitting statements and other materials or proposed dele-
tions in technical advice memorandums before public inspection is allowed do not apply
to requests for any documents to the extent § 6104 applies.
Statement identifying .05 The text of a technical advice memorandum subject to § 6110 may be open to pub-
information to be deleted lic inspection. The Service deletes certain information from the text before it is made
from public inspection available for inspection. To help the Service make the deletions required by § 6110(c), the
taxpayer must provide a statement indicating the deletions desired (“deletions statement”).
If the taxpayer does not submit the deletions statement, the Service will follow the proce-
dures in section 11.05 of this revenue procedure.
A taxpayer who wants only names, addresses, and identifying numbers deleted should
state this in the deletions statement. If the taxpayer wants more information deleted, the
deletions statement must be accompanied by a copy of the technical advice request and
supporting documents on which the taxpayer should bracket the material to be deleted.
The deletions statement must indicate the statutory basis, under § 6110(c) for each pro-
posed deletion.
If the taxpayer decides to ask for additional deletions before the technical advice mem-
orandum is issued, additional deletions statements may be submitted.
2001–1 I.R.B. 175 January 2, 2001

The deletions statement must not appear in the request for technical advice but, instead,
must be made in a separate document attached to the request.
The deletions statement must be signed and dated by the taxpayer or the taxpayer’s
The taxpayer should follow these same procedures to propose deletions from any addi-
tional information submitted after the initial request for technical advice. An additional
deletions statement, however, is not required with each submission of additional informa-
tion if the taxpayer’s initial deletions statement requests that only names, addresses, and
identifying numbers are to be deleted and the taxpayer wants the same information delet-
ed from the additional information.
Transmittal Form 5565, Request .06 The EP or EO Examinations or the EP or EO Determinations or the appeals office
for Technical Advice — EP/EO should use Form 5565, Request for Technical Advice — EP/EO, for transmitting a request
for technical advice to EP or EO Technical using the addresses listed below.
Address to send requests from Employee Plans

EP or EO Examinations or EP Internal Revenue Service
or EO Determinations offices Attn: T:EP:RA
1111 Constitution Ave., NW
Exempt Organizations
Attn: T:EO:RA
1111 Constitution Ave., NW
Address to send requests from Internal Revenue Service

appeals offices Director, Appeals LMSB Operations
Attn: C:AP:LMSB
Franklin Court Building
1099 14th Street, NW
Number of copies of request .07 The EP or EO Examinations or the EP or EO Determinations or the appeals office
to be submitted must submit (3) three copies of the request for technical advice to EP or EO Technical.
Power of attorney .08 Any authorized representative, as described in section 9.02 of Rev. Proc. 2001–4,
whether or not enrolled to practice, must comply with Treasury Department Circular No.
230, as revised, and with the conference and practice requirements of the Statement of
Procedural Rules (26 CFR part 601). It is preferred that Form 2848, Power of Attorney
and Declaration of Representative, be used with regard to requests for technical advice
under this revenue procedure.
Case files .09 The EP or EO Examinations or the EP or EO Determinations or the appeals office
will submit copies of the original documents (the administrative file) to EP or EO
Technical accompanying the applicable Form 5565. The EP or EO Examinations or the
EP or EO Determinations or the appeals office will maintain the original documents
(including any power of attorney).
SECTION 11. HOW ARE

REQUESTS HANDLED?
Taxpayer notified .01 Regardless of whether the taxpayer or the Service initiates the request for technical
advice, the EP or EO Examinations or the EP or EO Determinations or the appeals office:
January 2, 2001 176 2001–1 I.R.B.

(1) will notify the taxpayer that technical advice is being requested; and (2) at or before
the time the request is submitted to EP or EO Technical, will give to the taxpayer a copy
of the arguments that are being provided to EP or EO Technical in support of its position.
If the EP or EO specialist or appeals officer initiates the request for technical advice, he
or she will give to the taxpayer a copy of the statement of the pertinent facts and the issues
proposed for submission to EP or EO Technical.
This section 11.01 does not apply to a technical advice memorandum described in sec-
Conference offered .02 When notifying the taxpayer that technical advice is being requested, the EP or EO
specialist or appeals officer will also tell the taxpayer about the right to a conference in EP
or EO Technical if an adverse decision is indicated and will ask the taxpayer whether such
a conference is desired.
If the taxpayer disagrees with .03 If the EP or EO specialist or appeals officer initiates the request for technical advice,
the Service’s statement of facts the taxpayer has 10 calendar days after receiving the statement of facts and specific issues
to submit to that specialist or officer a written statement specifying any disagreement on
the facts and issues. A taxpayer who needs more than 10 calendar days must justify, in
writing, the request for an extension of time. The extension is subject to the approval of
the EP or EO Examinations Area manager or the EP or EO Determinations manager or the
Appeals Area Director, SB/SE-TE/GE.
After receiving the taxpayer’s statement of the areas of disagreement, every effort
should be made to reach agreement on the facts and the specific points at issue before the
matter is referred to EP or EO Technical. If an agreement cannot be reached, the EP or EO
Examinations or the EP or EO Determinations or the appeals office will notify the taxpayer
in writing. Within 10 calendar days after receiving the written notice, the taxpayer may
submit a statement of the taxpayer’s understanding of the facts and the specific points at
issue. A taxpayer who needs more than 10 calendar days to prepare the statement of under-
standing must justify, in writing, the request for an extension of time. The extension is
subject to the approval of the EP or EO Examinations Area manager or the EP or EO
Determinations manager or the Appeals Area Director, SB/SE-TE/GE. Both the state-
ments of the taxpayer and the EP or EO Examinations or EP or EO Determinations or
appeals office will be forwarded to EP or EO Technical with the request for technical
advice.
When EP or EO Examinations or EP or EO Determinations or the Appeals Area

Director, SB/SE-TE/GE, and the taxpayer cannot agree on the material facts and the
request for technical advice does not involve the issue of whether a letter ruling or deter-
mination letter should be modified or revoked, EP or EO Technical, at its discretion, may
refuse to provide technical advice. If EP or EO Technical chooses to issue technical
advice, it will base its advice on the facts provided by the EP or EO Examinations or EP
or EO Determinations or appeals office.
If a request for technical advice involves the issue of whether a letter ruling or determi-
nation letter should be modified or revoked, EP or EO Technical will issue the technical
advice.
If the Service disagrees with the .04 If the taxpayer initiates the action to request technical advice, and the taxpayer’s
taxpayer’s statement of facts statement of the facts and issues is not wholly acceptable to the EP or EO Examinations
or the EP or EO Determinations or the appeals office, the Service will notify the tax-
payer in writing of the areas of disagreement. The taxpayer has 10 calendar days after
receiving the written notice to reply to it. A taxpayer who needs more than 10 calen-
dar days must justify in writing the request for an extension of time. The extension is
subject to the approval of the EP or EO Examinations Area manager, or the EP or EO
Determinations manager or the Appeals Area Director, SB/SE-TE/GE.
2001–1 I.R.B. 177 January 2, 2001

If an agreement cannot be reached, both the statements of the taxpayer and the EP or EO
Examinations or EP or EO Determinations or appeals office will be forwarded to EP or EO
Technical with the request for technical advice. When the disagreement involves materi-
al facts essential to the preliminary assessment of the case, the EP or EO Examinations
Area manager, the EP or EO Determinations manager or the Appeals Area Director,
SB/SE-TE/GE, may refuse to refer a taxpayer initiated request for technical advice to EP
or EO Technical.
If the EP or EO Examinations or the EP or EO Determinations or the Appeals Area

Director, SB/SE-TE/GE, submits a case involving a disagreement of material facts, EP or
EO Technical, at its discretion, may refuse to provide technical advice. If EP or EO
Technical chooses to issue technical advice, it will base its advice on the facts provided by
the EP or EO Examinations or the EP or EO Determinations or the appeals office.
If the taxpayer has not submitted .05 When the EP or EO Examinations or the EP or EO Determinations or the appeals
the required deletions statement office initiates the request for technical advice, the taxpayer has 10 calendar days after
receiving the statement of facts and issues to be submitted to EP or EO Technical to pro-
vide the deletions statement required under § 6110 if public inspection is permitted pur-
suant to § 6110 (see section 10.05 of this revenue procedure). In such a case, if the tax-
payer does not submit the deletions statement, the EP or EO Examinations or the EP or EO
Determinations or the appeals office, will tell the taxpayer that the statement is required.
When the taxpayer initiates the request for technical advice and does not submit with the
request a deletions statement as required by § 6110, the EP or EO Examinations or the EP
or EO Determinations or the Appeals Area Director, SB/SE-TE/GE, will ask the taxpayer
to submit the statement. If the EP or EO Examinations or the EP or EO Determinations or
the Appeals Area Director, SB/SE-TE/GE, does not receive the deletions statement within
10 calendar days after asking the taxpayer for it, the EP or EO Examinations or the EP or
EO Determinations or the Appeals Area Director, SB/SE-TE/GE, may decline to submit
the request for technical advice.
However, if the EP or EO Examinations or the EP or EO Determinations or the Appeals

Area Director, SB/SE-TE/GE, decides to request technical advice, whether initiated by the
EP or EO Examinations or the EP or EO Determinations or the appeals office or by the
taxpayer, in a case in which the taxpayer has not submitted the deletions statement, EP or
EO Technical will make those deletions that the Commissioner of Internal Revenue deter-
mines are required by § 6110(c).
Criminal or civil fraud cases .06 The provisions of this section (about referring issues upon the taxpayer’s request,
obtaining the taxpayer’s statement of the areas of disagreement, telling the taxpayer about
the referral of issues, giving the taxpayer a copy of the arguments submitted, submitting
proposed deletions, and granting conferences in EP or EO Technical) do not apply to a
technical advice memorandum described in § 6110(g)(5)(A) that involves a matter that is
the subject of or is otherwise closely related to a criminal or civil fraud investigation, or a
jeopardy or termination assessment.
In these cases, a copy of the technical advice memorandum is given to the taxpayer after all
proceedings in the investigations or assessments are complete, but before the Service mails
the notice of intention to disclose the technical advice memorandum under § 6110(f)(1). The
taxpayer may then provide the statement of proposed deletions to EP or EO Technical.
TAXPAYER APPEAL AN EP
OR EO MANAGER’S OR AN
APPEALS AREA DIRECTOR’S
TECHNICAL ADVICE?
January 2, 2001 178 2001–1 I.R.B.

Taxpayer notified of decision .01 If the EP or EO specialist’s or the appeal’s referral of an issue to EP or EO Technical
not to seek technical advice for technical advice does not warrant referral, the EP or EO specialist or the appeals offi-
cer will tell the taxpayer. A taxpayer’s request for such a referral will not be denied mere-
ly because EP or EO Technical provided legal advice, other than advice furnished pursuant
to this revenue procedure, to the EP or EO Examinations or EP or EO Determinations or
appeals office on the matter.
Taxpayer may appeal decision .02 The taxpayer may appeal the decision of the EP or EO specialist or the appeals offi-
not to seek technical advice cer not to request technical advice. To do so, the taxpayer must submit to that specialist
or officer, within 10 calendar days after being told of the decision, a written statement of
the facts, law, and arguments on the issue and the reasons why the taxpayer believes the
matter should be referred to EP or EO Technical for technical advice. A taxpayer who
needs more than 10 calendar days must justify in writing the request for an extension of
time. The extension is subject to the approval of the EP or EO Examinations Area man-
ager or the EP or EO Determinations manager or the Appeals Area Director, SB/SE-
TE/GE.
EP or EO Examinations Area .03 The EP or EO specialist or the appeals officer submits the taxpayer’s statement
manager or EP or EO through proper channels to the EP or EO Examinations Area manager or the EP or EO
Determinations manager or Determinations manager or the Appeals Area Director, SB/SE-TE/GE, along with the EP
Appeals Area Director, SB/SE- or EO specialist’s or the appeals officer’s statement of why the issue should not be referred
TE/GE, determines whether to EP or EO Technical. The manager or Appeals Area Director, SB/SE-TE/GE, determines,
technical advice will be sought on the basis of the statements, whether technical advice will be requested.
If the manager or Appeals Area Director, SB/SE-TE/GE, determines that technical

advice is not warranted and proposes to deny the request, the taxpayer is told in writing
about the determination. In the letter to the taxpayer, the manager or Appeals Area
Director, SB/SE-TE/GE, states the reasons for the proposed denial (except in unusual
situations when doing so would be prejudicial to the best interests of the Government).
The taxpayer has 10 calendar days after receiving the letter to notify the manager or
Appeals Area Director, SB/SE-TE/GE, of agreement or disagreement with the proposed
denial.
Manager or area director’s .04 The taxpayer may not appeal the decision of the EP or EO Examinations Area man-
decision may be reviewed ager or the EP or EO Determinations manager or the Appeals Area Director, SB/SE-
but not appealed TE/GE, not to request technical advice from EP or EO Technical. However, if the taxpayer
does not agree with the proposed denial, all data on the issue for which technical advice
has been sought, including the taxpayer’s written request and statements, will be submit-
ted to the Commissioner, Tax Exempt and Government Entities Division or the Chief,
Appeals, as appropriate.
The Commissioner, Tax Exempt and Government Entities Division through the Di-
rector, Employee Plans, or the Director, Exempt Organizations or, if appropriate, the
Chief, Appeals will review the proposed denial solely on the basis of the written
record, and no conference will be held with the taxpayer or the taxpayer’s representa-
tive. The appropriate Director or Chief or his or her representative may consult with
EP or EO Technical and the Office of Chief Counsel, if necessary, and will notify the
EP or EO Examinations or the EP or EO Determinations or the area appeals office
within 45 calendar days of receiving all the data regarding the request for technical
advice whether the proposed denial is approved or disapproved. The EP or EO
Examinations or the EP or EO Determinations or area appeals office will then notify
the taxpayer.
While the matter is being reviewed, the EP or EO Examinations office or the EP or EO

Determinations office or the area appeals office suspends action on the issue (except when
the delay would prejudice the Government’s interest).
2001–1 I.R.B. 179 January 2, 2001

The provisions of this revenue procedure regarding review of the proposed denial of a
request for technical advice continue to be applicable in those situations in which the
authority normally exercised by the EP or EO Examinations Area manager, the EP or EO
Determinations manager, or the Appeals Area Director, SB/SE-TE/GE, has been delegat-
ed to another official.
SECTION 13. HOW ARE

ADVICE WITHDRAWN?
Taxpayer notified .01 Once a request for technical advice has been sent to EP or EO Technical, only an
EP or EO Examinations Area manager, an EP or EO Determinations manager or an
Appeals Area Director, SB/SE-TE/GE may withdraw that request for technical advice. He
or she may ask to withdraw a request at any time before the responding transmittal mem-
orandum transmitting the technical advice is signed.
The EP or EO Examinations Area manager, the EP or EO Determinations manager or

the Appeals Area Director, SB/SE-TE/GE, as appropriate, must notify the taxpayer in writ-
ing of an intent to withdraw the request for technical advice except (1) when the period of
limitations on assessment is about to expire and the taxpayer has declined to sign a con-
sent to extend the period, or (2) when such notification would be prejudicial to the best
interests of the Government.
If the taxpayer does not agree that the request for technical advice should be withdrawn,
the procedures in section 12 of this revenue procedure must be followed.
EP or EO Technical may .02 When a request for technical advice is withdrawn, EP or EO Technical may send its
provide views views to the EP or EO Examinations office or the EP or EO Determinations office or the
Appeals Area Director, SB/SE-TE/GE, when acknowledging the withdrawal request. In
an appeals case, acknowledgment of the withdrawal request should be sent to the appro-
priate appeals office, through the Director, Appeals LMSB Operations, C:AP:LMSB. In
appropriate cases, the subject matter may be published as a revenue ruling or as a revenue
procedure.
SECTION 14. HOW ARE

If requested, offered to the .01 If, after the technical advice request is analyzed, it appears that technical advice
taxpayer when adverse adverse to the taxpayer will be given, and if a conference has been requested, the taxpay-
technical advice proposed er will be informed, by telephone if possible, of the time and place of the conference.
Normally held within 21 days .02 The conference must be held within 21 calendar days after the taxpayer is contact-
of contact with the taxpayer ed. If conferences are being arranged for more than one request for technical advice for
the same taxpayer, they will be scheduled to cause the least inconvenience to the taxpay-
er. If considered appropriate, EP or EO Technical will notify the EP or EO specialist or
the appeals officer of the scheduled conference and will offer the EP or EO specialist or
the appeals officer the opportunity to attend the conference. The Commissioner, Tax
Exempt and Government Entities Division, the Chief, Appeals, the EP or EO
Examinations Area manager, the EP or EO Determinations manager, or the Appeals Area
Director, SB/SE-TE/GE may designate other Service representatives to attend the confer-
ence in lieu of, or in addition to, the EP or EO specialist or the appeals officer.
21-day period may be extended .03 An extension of the 21-day period will be granted only if the taxpayer justifies it in
if justified and approved writing, and the group manager (or his or her delegate) of the office to which the case is
assigned approves it. No extension will be granted without the approval of the group man-
ager (or his or her delegate). Except in rare and unusual circumstances, EP or EO
Technical will not agree to an extension of more than 10 working days beyond the end of
the 21-day period.
January 2, 2001 180 2001–1 I.R.B.

The request for an extension must be submitted before the end of the 21-day period, and
should be submitted sufficiently before the end of this period to allow EP or EO Technical
to consider, and either approve or deny, the request before the end of the 21-day period. If
unusual circumstances near the end of the period make a timely written request impracti-
cal, EP or EO Technical should be told orally before the end of the period about the prob-
lem and about the forthcoming written request for an extension. The written request for
an extension must be submitted to EP or EO Technical promptly after the oral request. The
taxpayer will be told promptly (and later in writing) of the approval or denial of the
requested extension.
Denial of extension cannot .04 There is no right to appeal the denial of a request for an extension. If EP or EO
be appealed Technical is not advised of problems with meeting the 21-day period, or if the written
request is not sent promptly after EP or EO Technical is notified of problems with meet-
ing the 21-day period, the case will be processed on the basis of the existing record.
Entitled to one conference of right .05 A taxpayer is entitled by right to only one conference in EP or EO Technical unless
one of the circumstances discussed in section 14.09 of this revenue procedure exists. This
conference is normally held at the group level in EP Technical or EO Technical, whichev-
er is appropriate. It is attended by a person who has authority to sign the transmittal mem-
orandum discussed in section 16.13 on behalf of the group manager.
When more than one group has taken an adverse position on an issue in the request, or
when the position ultimately adopted by one group will affect another group’s determina-
tion, a representative from each group with authority to sign for the group manager will
attend the conference. If more than one subject is discussed at the conference, the discus-
sion constitutes the conference of right for each subject discussed.
To have a thorough and informed discussion of the issues, the conference usually is held
after the group has had an opportunity to study the case. However, the taxpayer may
request that the conference of right be held earlier in the consideration of the case than the
Service would ordinarily designate.
The taxpayer has no right to appeal the action of a group to any other Service official.
But see section 14.09 for situations in which the Service may offer additional conferences.
Conference may not be taped .06 Because conference procedures are informal, no tape, stenographic, or other verba-
tim recording of a conference may be made by any party.
Conference may be delayed .07 In the event of a tentative adverse determination, the taxpayer may request in writ-
to address a request for relief ing a delay of the conference so that the taxpayer can prepare and submit a brief request-
under § 7805(b) ing relief under § 7805(b) (discussed in section 19 of this revenue procedure). The group
manager (or his or her delegate) of the office to which the case is assigned will determine
whether to grant or deny the request for delaying the conference. If such request is grant-
ed, the Service will schedule a conference on the tentatively adverse position and the
§ 7805(b) relief request within 10 days of receiving the taxpayer’s § 7805(b) request. See
section 19.06 of this revenue procedure for the conference procedures if the § 7805(b)
request is made after the conference on the substantive issues has been held.
Service makes tentative .08 The senior Service representative at the conference ensures that the taxpayer has full
recommendations opportunity to present views on all the issues in question. The Service representatives
explain the tentative decision on the substantive issues and the reasons for it.
If the taxpayer requests relief under § 7805(b) (regarding limitation of retroactive

effect), the Service representatives will discuss the tentative recommendation concerning
the request for relief and the reason for the tentative recommendation.
No commitment will be made as to the conclusion that the Service will finally adopt
regarding the outcome of the § 7805(b) issue or on any other issue discussed.
2001–1 I.R.B. 181 January 2, 2001

Additional conferences may .09 The Service will offer the taxpayer an additional conference if, after the conference
be offered of right, an adverse holding is proposed on a new issue or on the same issue but on grounds
different from those discussed at the first conference.
When a proposed holding is reversed at a higher level with a result less favorable to the
taxpayer, the taxpayer has no right to another conference if the grounds or arguments on
which the reversal is based were discussed at the conference of right.
The limitation on the number of conferences to which a taxpayer is entitled does not pre-
vent EP or EO Technical from inviting a taxpayer to attend additional conferences, includ-
ing conferences with an official higher than the group level, if EP or EO Technical per-
sonnel think they are necessary. Such conferences are not offered as a matter of course
simply because the group has reached an adverse decision. In general, conferences with
higher level officials are offered only if the Service determines that the case presents sig-
nificant issues of tax policy or tax administration and that the consideration of these issues
would be enhanced by additional conferences with the taxpayer.
In accordance with section 14.02 of this revenue procedure, the EP or EO specialist or

the appeals officer may be offered the opportunity to participate in any additional taxpay-
er’s conference, including a conference with an official higher than the group level.
Additional information submitted .10 Within 21 calendar days after the conference, the taxpayer must furnish to EP or EO
after the conference Technical, whichever is applicable, any additional data, lines of reasoning, precedents,
etc., that the taxpayer proposed and discussed at the conference but did not previously or
adequately present in writing. This additional information must be submitted by letter
with a penalties of perjury statement in the form described in section 16.10 of this revenue
procedure.
The taxpayer must also send a copy of the additional information to the EP or EO
Examinations office or the EP or EO Determinations office or the Appeals Area Director,
SB/SE-TE/GE, for comment. Any comments must be furnished promptly to the appro-
priate group in EP or EO Technical. If the EP or EO Examinations office or the EP or EO
Determinations office or the Appeals Area Director, SB/SE-TE/GE, does not have any
comments, he or she must notify the group representative promptly.
If the additional information would have a significant impact on the facts in the request
for technical advice, EP or EO Technical will ask EP or EO Examinations or EP or EO
Determinations or the Appeals Area Director, SB/SE-TE/GE, for comments on the facts
contained in the additional information submitted. The EP or EO Examinations office or
the EP or EO Determinations office or the Appeals Area Director, SB/SE-TE/GE, will give
the additional information prompt attention.
If the additional information is not received from the taxpayer within 21 calendar days,
the technical advice memorandum will be issued on the basis of the existing record.
An extension of the 21-day period may be granted only if the taxpayer justifies it in writ-
ing, and the group manager (or his or her delegate) of the office to which the case is
assigned approves the extension. Such extension will not be routinely granted. The pro-
cedures for requesting an extension of the 21-day period and notifying the taxpayer of the
Services’s decision are the same as those in sections 14.03 and 14.04 of this revenue pro-
cedure.
may schedule a conference to This request may occur, for example, when a taxpayer wants a conference of right but
be held by telephone believes that the issue does not warrant the expense of traveling to Washington, DC. If a
January 2, 2001 182 2001–1 I.R.B.

taxpayer makes such a request, the group manager, or his or her delegate of the group to
which the case is assigned, will decide if it is appropriate in the particular case to hold the
conference of right by telephone. If the request is approved, the taxpayer will be advised
when to call the Service representatives (not a toll-free call).
In accordance with section 14.02 of this revenue procedure, the EP or EO specialist or

appeals officer will be offered the opportunity to participate in the telephone conference.
SECTION 15. HOW IS STATUS

Taxpayer or taxpayer’s .01 The taxpayer or the taxpayer’s representative may obtain information on the status
representative may request of the request for technical advice by contacting the EP or EO Examinations office or the
status from EP or EO EP or EO Determinations office or the appeals office that requested the technical advice.
Examinations or EP or EO See section 16.08 of this revenue procedure concerning the time for discussing the tenta-
Determinations or appeals office tive conclusion with the taxpayer’s representative. See section 17.02 of this revenue pro-
cedure regarding discussions of the contents of the technical advice memorandum with the
taxpayer or the taxpayer’s representative.
EP or EO Technical will give .02 The group representative or manager to whom the technical advice request is
status updates to the EP or assigned will give status updates on the request once a month to the EP or EO Examination
EO Examinations or EP or EO Area manager or the EP or EO Determinations manager or the Appeals Area Director,
Determinations or Appeals Area SB/SE-TE/GE. In addition, an EP or EO Examinations Area manager or an EP or EO
Director, SB/SE-TE/GE Determinations manager or an Appeals Area Director, SB/SE-TE/GE may get current
information on the status of the request for technical advice by calling the person whose
name and telephone number are shown on acknowledgment of receipt of the request for
technical advice.
See section 16.09 of this revenue procedure about discussing the final conclusions with
the EP or EO Examinations office or the EP or EO Determinations office or the appeals
office. Further, the EP or EO Examinations office or the EP or EO Determinations office
or the Appeals Area Director, SB/SE-TE/GE will be notified at the time the technical
advice memorandum is mailed.
SECTION 16. HOW DOES

EP OR EO TECHNICAL
PREPARE THE TECHNICAL
ADVICE MEMORANDUM?
Delegates authority to .01 The authority to issue technical advice on issues under the jurisdiction of the
group managers Commissioner, Tax Exempt and Government Entities Division has largely been delegated
to the managers of the Employee Plans Rulings & Agreements Technical and Actuarial
groups, and the Technical Guidance and Quality Assurance group (collectively referred to
as “EP Technical”); and of the Exempt Organizations Rulings & Agreements Technical
groups and the Technical Guidance and Quality Assurance group (collectively referred to
as “EO Technical”)
Determines whether request .02 A request for technical advice generally is given priority and processed expedi-
has been properly made tiously. As soon as the request for technical advice is assigned, the technical employee
analyzes the file to see whether it meets all of the requirements of sections 7, 8, and 10 of
However, if the request does not comply with the requirements of section 10.05 of this
revenue procedure relating to the deletions statement, the Service will follow the proce-
dure in the last paragraph of section 11.05 of this revenue procedure.
2001–1 I.R.B. 183 January 2, 2001

Contacts the EP or EO .03 Usually, within 21 calendar days after the group receives the request for technical
Examinations or EP or EO advice, a representative of the group telephones the EP or EO Examinations office or the
Determinations or appeals EP or EO Determinations office or the appeals office to discuss the procedural and sub-
office to discuss issues stantive issues in the request that come within the group’s jurisdiction.
Informs the EP or EO .04 If the technical advice request concerns matters within the jurisdiction of more than
Examinations or EP or EO one group or office, a representative of the group that received the original technical
Determinations or appeals advice request generally informs the EP or EO Examinations office or the EP or EO
office if any matters in the Determinations office or the appeals office within 21 calendar days of receiving the
request have been referred to request that—
another group or office
(1) the matters within the jurisdiction of another group or office have been referred to
the other group or office for consideration, and
(2) a representative of the other group or office will contact the EP or EO Examinations
office or the EP or EO Determinations office or the appeals office about the referral of the
technical advice request within 21 calendar days after receiving it in accordance with sec-
tion 16.03 above.
Informs the EP or EO .05 The group representative will inform the EP or EO Examinations office or the EP
Examinations or EP or EO or EO Determinations office or the appeals office that the case is being returned if sub-
Determinations or appeals stantial additional information is required to resolve an issue. Cases should be returned
office if additional information for additional information when significant unresolved factual variances exist between the
is needed statement of facts submitted by the EP or EO Examinations office or the EP or EO
Determinations or the appeals office and the taxpayer. They should also be returned if
major procedural problems cannot be resolved by telephone. The EP or EO Examinations
office or the EP or EO Determinations office or the appeals office should promptly notify
the taxpayer of the decision to return the case for further factual development or other rea-
sons.
If only minor procedural deficiencies exist, the group will request the additional infor-
mation in the most expeditious manner without returning the case.
Informs the EP or EO .06 If all necessary information has been provided, the group representative discusses
Examinations or EP or EO with the EP or EO Examinations office or the EP or EO Determinations office or the
Determinations or appeals office appeals office his or her tentative conclusion.
of the tentative conclusion
If a tentative conclusion has not .07 If a tentative conclusion has not been reached because of the complexity of the issue,
been reached, gives date estimated the group representative informs the EP or EO Examinations office or the EP or EO
for tentative conclusion Determinations office or the appeals office of the estimated date the tentative conclusion
will be made.
Advises the EP or EO .08 Because the group representative’s tentative conclusion may change during the
Examinations or EP or EO preparation and review of the technical advice memorandum, the tentative conclusion
Determinations or appeals office should not be considered final. Therefore, neither the group representative nor the EP or
that preliminary conclusion EO Examinations office or the EP or EO Determinations or the appeals office should
not final advise the taxpayer or the taxpayer’s representative of the tentative conclusion before the
scheduling of the adverse conference.
Advises the EP or EO .09 In all cases, the group representative should inform the EP or EO specialist or
Examinations or EP or EO appeals officer of EP or EO Technical’s final conclusions. The EP or EO specialist or the
Determinations or appeals appeals officer should be offered the opportunity to discuss the issues and EP or EO
office of final conclusions Technical’s final conclusions before the technical advice memorandum is issued.
If needed, requests additional .10 If, following the initial contact referenced in section 16.03 of this revenue proce-
information dure, it is determined, after discussion with the appropriate group manager or reviewer,
that additional information is needed, a group representative will obtain the additional
January 2, 2001 184 2001–1 I.R.B.

information from the taxpayer, the EP or EO Examinations office or the EP or EO
Determinations office or the Appeals Area Director, SB/SE-TE/GE, in the most expedi-
tious manner possible. Any additional information requested from the taxpayer by EP or
EO Technical must be submitted by letter with a penalties of perjury statement within 21
calendar days after the request for information is made.
Penalties of perjury statement Additional information submitted to EP or EO Technical must be accompanied by the
following declaration: “Under penalties of perjury, I declare that I have examined this
information, including accompanying documents, and, to the best of my knowledge
and belief, the information contains all the relevant facts relating to the request, for
the information and such facts are true, correct, and complete.” This declaration must
be signed and dated by the taxpayer, not the taxpayer’s representative. A stamped signa-
ture is not permitted.
A written request for an extension of time to submit additional information must be

received by EP or EO Technical within the 21 day period, giving compelling facts and cir-
cumstances to justify the proposed extension. The group manager (or his or her delegate)
of the office to which the case is assigned will determine whether to grant or deny the
request for an extension of the 21-day period. No extension will be granted without the
approval of the appropriate group manager (or his or her delegate). Except in rare and
unusual circumstances, EP or EO Technical will not agree to an extension of more than 10
working days beyond the end of the 21-day period. There is no right to appeal the denial
of a request for an extension.
If EP or EO Technical does not receive the additional information within 21 calendar

days, plus any extensions granted by the appropriate group manager (or his or her dele-
gate), EP or EO Technical will process the technical advice memorandum based on the
existing record.
Requests taxpayer to send .11 Whether or not requested by the Service, any additional information submitted by
additional information to the taxpayer should be sent to the headquarters office. Generally, the taxpayer needs only
EP or EO Technical and a copy to to submit the original of the additional information to EP or EO Technical. However, in
EP or EO Examinations or EP appropriate cases, EP or EO Technical may request additional copies of the information.
or EO Determinations or Appeals
Area Director, SB/SE-TE/GE Also, the taxpayer must send a copy to either the EP or EO Examinations office or the
EP or EO Determinations office or the Appeals Area Director, SB/SE-TE/GE, for com-
ment. Any comments must be furnished promptly to the appropriate group in EP or EO
Technical. If the EP or EO Examinations office or the EP or EO Determinations office or
the Appeals Area Director, SB/SE-TE/GE, does not have any comments, he or she must
notify the group representative promptly.
Informs the taxpayer when .12 Generally, before replying to the request for technical advice, EP or EO Technical
requested deletions will not informs the taxpayer orally or in writing of the material likely to appear in the technical
be made advice memorandum that the taxpayer proposed be deleted but that the Service has deter-
mined should not be deleted.
If so informed, the taxpayer may submit within 10 calendar days any further informa-
tion or other arguments supporting the taxpayer’s proposed deletions.
The Service will attempt to resolve all disagreements about proposed deletions before
EP or EO Technical replies to the request for technical advice. However, the taxpayer does
not have the right to a conference to resolve any disagreements about material to be delet-
ed from the text of the technical advice memorandum. These matters, however, may be
considered at any conference otherwise scheduled for the request.
Prepares reply in two parts .13 EP or EO Technical’s reply to a technical advice request is in two parts. Each part iden-
tifies the taxpayer by name, address, identification number, and year or years involved.
2001–1 I.R.B. 185 January 2, 2001

The first part of the reply is a transmittal memorandum. In unusual cases, it is a way of
giving the EP or EO Examinations office or the EP or EO Determinations office or the
appeals office administrative or other information that under the nondisclosure statutes or
for other reasons may not be discussed with the taxpayer.
The second part is the technical advice memorandum, which contains—
(1) a statement of the issues;
(2) a statement of the facts pertinent to the issues;
(3) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other
precedents published in the Internal Revenue Bulletin, and court decisions;
(4) a discussion of the rationale underlying the conclusions reached by EP or EO

Technical; and
(5) the conclusions of EP or EO Technical.
The conclusions give direct answers, whenever possible, to the specific issues raised by
the EP or EO Examinations office or the EP or EO Determinations office or the appeals
office. However, EP or EO Technical is not bound by the precise statement of the issues
as submitted by the taxpayer or by the EP or EO Examinations office or the EP or EO
Determinations office or the appeals office and may reframe the issues to be answered in
the technical advice memorandum. The discussion of the issues will be in sufficient detail
so that the EP or EO Examinations or the EP or EO Determinations or the appeals officials
will understand the reasoning underlying the conclusion.
Accompanying a technical advice memorandum subject to § 6110, is a notice under

§ 6110(f)(1) of intention to disclose the technical advice memorandum (including a copy
of the version proposed to be open to public inspection and notations of third party com-
munications under § 6110(d)).
Routes replies to appropriate office .14 Replies to requests for technical advice from EO Examinations Area managers and
EO Determinations managers are addressed to:

Attn: EO Mandatory Review
MC 4920 DAL
1100 Commerce Street
Dallas, TX 75242
The EO Mandatory Review Staff will ensure that copies are forwarded to the EO
Examinations Area manager or the EO Determinations manager.
Replies to requests for technical advice from EP Examinations Area managers are
addressed to:

Attn: EP Mandatory Review
31 Hopkins Plaza
Baltimore, MD 21201
The EP Mandatory Review Staff will ensure that copies are forwarded to the EP
Examinations Area manager.
January 2, 2001 186 2001–1 I.R.B.

Replies to requests for technical advice from EP Determinations managers are addressed
to:

Attn: EP Determinations Quality Assurance
P.O. Box 2508
Cincinnati, OH 45201
Replies to requests for technical advice from an Appeals Area Director, SB/SE-TE/GE
are routed to the appropriate appeals office through the Director, Appeals LMSB
Operations, C:AP:LMSB.
SECTION 17. HOW DOES AN

EP OR EO EXAMINATIONS OR
AN EP OR EO DETERMINATIONS
OR AN APPEALS OFFICE USE
THE TECHNICAL ADVICE?
Generally applies advice in .01 The EP or EO Examinations Area manager or the EP or EO Determinations man-
processing the taxpayer’s case ager or the Appeals Area Director, SB/SE-TE/GE, must process the taxpayer’s case on the
basis of the conclusions in the technical advice memorandum unless—
(1) the EP or EO Examinations Area manager or the EP or EO Determinations manager

or the Appeals Area Director, SB/SE-TE/GE, decides that the conclusions reached by EP
or EO Technical in a technical advice memorandum should be reconsidered, or
(2) the Appeals Area Director, SB/SE-TE/GE, in the case of technical advice unfavor-
able to the taxpayer, decides to settle the issue in the usual manner under existing author-
ity.
Subject to a request for reconsideration of the conclusions in a technical advice memo-

randum, EP or EO Examinations or EP or EO Determinations must follow the conclusions
in a technical advice memorandum as to all issues and the Appeals Area Director, SB/SE-
TE/GE, must follow the conclusions in a technical advice memorandum on issues of an
organization’s/plan’s status or qualification. Thus, if the technical advice memorandum
received by EP or EO Examinations or EP or EO Determinations concerns an organiza-
tion’s/plan’s status or qualification, the organization/plan has no appeal to the appeals
office on those specific issues.
Discussion with the taxpayer .02 EP or EO Technical will not discuss the contents of the technical advice memoran-
dum with the taxpayer or the taxpayer’s representative until the taxpayer has been given a
copy by the EP or EO Examinations office or the EP or EO Determinations office or the
appeals office
Gives copy to the taxpayer .03 The EP or EO Examinations office or the EP or EO Determinations office or the
Appeals Area Director, SB/SE-TE/GE, only after adopting the technical advice, gives the
taxpayer (1) a copy of the technical advice memorandum described in section 16.13, and
(2) the notice under § 6110(f)(1) of intention to disclose the technical advice memorandum
(including a copy of the version proposed to be open to public inspection and notations of
third party communications under § 6110(d)).
This requirement does not apply to a technical advice memorandum involving a crimi-
nal or civil fraud investigation, or a jeopardy or termination assessment, as described in
section 11.06 of this revenue procedure, or documents to which § 6104 (document open to
public inspection) applies as described in section 10.03.
Taxpayer may protest deletions .04 After receiving the notice under § 6110(f)(1) of intention to disclose the technical
not made advice memorandum, the taxpayer may protest the disclosure of certain information in it.
2001–1 I.R.B. 187 January 2, 2001

The taxpayer must submit a written statement within 20 calendar days identifying those
deletions not made by the Service that the taxpayer believes should have been made. The
taxpayer must also submit a copy of the version of the technical advice memorandum pro-
posed to be open to public inspection with brackets around deletions proposed by the tax-
payer that have not been made by EP or EO Technical.
Generally, EP or EO Technical considers only the deletion of material that the taxpayer
has proposed be deleted or other deletions as required under § 6110(c) before the EP or EO
Technical reply is sent to the EP or EO Examinations office or the EP or EO
Determinations office or the Appeals Area Director, SB/SE-TE/GE. Within 20 calendar
days after it receives the taxpayer’s response to the notice under § 6110(f)(1), EP or EO
Technical must mail the taxpayer its final administrative conclusion about the deletions to
be made.
When no copy is given to the .05 If EP or EO Technical tells the EP or EO Examinations office or the EP or EO
taxpayer Determinations office or the Appeals Area Director, SB/SE-TE/GE, that a copy of the tech-
nical advice memorandum should not be given to the taxpayer and the taxpayer requests a
copy, the EP or EO Examinations office or the EP or EO Determinations office or the
Appeals Area Director, SB/SE-TE/GE, will tell the taxpayer that no copy will be given.

EFFECT OF TECHNICAL
ADVICE?
Applies only to the taxpayer .01 A taxpayer may not rely on a technical advice memorandum issued by the Service
for whom technical advice for another taxpayer.
was requested
Usually applies retroactively .02 Except when stated otherwise, a holding in a technical advice memorandum is
applied retroactively, unless the Commissioner, Tax Exempt and Government Entities
Division exercises discretionary authority under § 7805(b) to limit the retroactive effect of
the holding. Section 18.06 below lists the criteria necessary for granting § 7805(b) relief,
and section 19 of this revenue procedure describes the effect of § 7805(b) relief.
Generally applied retroactively .03 A holding that modifies or revokes a holding in a prior technical advice memoran-
to modify or revoke prior dum is applied retroactively, with one exception. If the new holding is less favorable to
technical advice the taxpayer than the earlier one, it generally is not applied to the period when the taxpayer
relied on the prior holding in situations involving continuing transactions.
Applies to continuing action .04 If a technical advice memorandum relates to a continuing action or a series of
or series of actions until actions, ordinarily it is applied until specifically withdrawn or until the conclusion is mod-
specifically withdrawn, ified or revoked by enactment of legislation, ratification of a tax treaty, a decision of the
modified, or revoked United States Supreme Court, or the issuance of regulations (temporary or final), a rev-
enue ruling, or other statement published in the Internal Revenue Bulletin. Publication of
a notice of proposed rulemaking does not affect the application of a technical advice mem-
orandum.
Applies to continuing action .05 A taxpayer is not protected against retroactive modification or revocation of a tech-
or series of actions until nical advice memorandum involving a continuing action or a series of actions occurring
material facts change after the material facts on which the technical advice memorandum is based have changed.
Does not apply retroactively .06 Generally, a technical advice memorandum that modifies or revokes a letter ruling
under certain conditions or another technical advice memorandum or a determination letter is not applied retroac-
tively either to the taxpayer to whom or for whom the letter ruling or technical advice
memorandum or determination letter was originally issued, or to a taxpayer whose tax lia-
bility was directly involved in such letter ruling or technical advice memorandum or deter-
mination letter if—
January 2, 2001 188 2001–1 I.R.B.

which the letter ruling or technical advice memorandum or determination letter was based;
(4) in the case of a letter ruling, it was originally issued on a prospective or proposed
transaction; and
(5) the taxpayer directly involved in the letter ruling or technical advice memorandum
or determination letter acted in good faith in relying on the letter ruling or technical advice
memorandum or determination letter, and the retroactive modification or revocation would
be to the taxpayer’s detriment. For example, the tax liability of each employee covered by
a letter ruling or technical advice memorandum or determination letter relating to a pen-
sion plan of an employer is directly involved in the letter ruling or technical advice mem-
orandum or determination letter. However, the tax liability of members of an industry is
not directly involved in a letter ruling or technical advice memorandum or determination
letter issued to one of the members, and the holding in a modification or revocation of a
letter ruling or technical advice memorandum or determination letter to one member of an
industry may be retroactively applied to other members of the industry. By the same rea-
soning, a tax practitioner may not obtain the nonretroactive application to one client of a
modification or revocation of a letter ruling or technical advice memorandum or determi-
nation letter previously issued to another client.
When a letter ruling or determination letter to a taxpayer or a technical advice memo-

randum involving a taxpayer is modified or revoked with retroactive effect, the notice to
the taxpayer, except in fraud cases, sets forth the grounds on which the modification or
revocation is being made and the reason why the modification or revocation is being
applied retroactively.
In order for a technical advice memorandum that modifies or revokes a letter ruling or
another technical advice memorandum or a determination letter not to be applied retroac-
tively either to the taxpayer to whom or for whom the letter ruling, technical advice mem-
orandum or determination letter was originally issued, or to a taxpayer whose tax liability
was directly involved in such letter ruling, technical advice memorandum or determination
letter, such taxpayer generally must request relief under § 7805(b) in the manner described
in section 19 below.
SECTION 19. HOW MAY

RETROACTIVE EFFECT
BE LIMITED?
Commissioner has discretionary .01 Under § 7805(b) the Commissioner or the Commissioner’s delegate has the discre-
authority under § 7805(b) tion to prescribe the extent, if any, to which a technical advice memorandum will be
applied without retroactive effect.
Taxpayer may request .02 A taxpayer who has received a technical advice memorandum or for whom a tech-
Commissioner to exercise nical advice request is pending may request that the Commissioner, Tax Exempt and
authority Government Entities Division, the Commissioner of Internal Revenue’s delegate, exercise
the discretionary authority under § 7805(b) to limit the retroactive effect of any holding
stated in the technical advice memorandum or to limit the retroactive effect of any subse-
quent modification or revocation of the technical advice memorandum.
Form of request to limit .03 When a technical advice memorandum that concerns a continuing transaction is
retroactivity—before an modified or revoked by, for example, a subsequent revenue ruling or final regulations, a
examination request to limit the retroactive effect of the modification or revocation of the technical
advice memorandum must be made in the form of a request for a letter ruling if submitted
2001–1 I.R.B. 189 January 2, 2001

before examination of the return that contains the transaction that is the subject of the
request for the letter ruling. See Rev. Proc. 2001–4.
Form of request to limit .04 When, during the course of an examination of a taxpayer’s return by EP or EO
retroactivity—during course Examinations or consideration by the Appeals Area Director, SB/SE-TE/GE, a taxpayer is
of an examination informed that EP or EO Examinations or the Appeals Area Director, SB/SE-TE/GE, rec-
ommends that a technical advice memorandum be modified or revoked, a request to limit
the retroactive application of the modification or revocation of the technical advice mem-
orandum must itself be made in the form of a request for technical advice. See sections 7,
8 and 10 of this revenue procedure and sections 19.07 and 19.08 below.
The taxpayer must also submit a statement that the request is being made pursuant to
§ 7805(b). This statement must also indicate the relief requested and give the reasons and
arguments in support of the relief requested. It must also be accompanied by any docu-
ments bearing on the request. The explanation should discuss the five items listed in sec-
tion 18.06 of this revenue procedure as they relate to the taxpayer’s situation.
The taxpayer’s request, including the statement that the request is being made pursuant
to § 7805(b), must be forwarded by EP or EO Examinations or the Appeals Area Director,
SB/SE-TE/GE, to EP or EO Technical for consideration.
Form of request to limit .05 A request to limit the retroactive effect of a holding in a technical advice memo-
retroactivity—technical advice randum that does not modify or revoke a technical advice memorandum may be made as
that does not modify or revoke part of that technical advice request, either initially, or at any time before the technical
prior memorandum advice memorandum is issued by EP or EO Technical. In such a case, the taxpayer must
also submit a statement in support of the application of § 7805(b), as described in section
19.04 above.
Taxpayer’s right to a conference .06 When a request for technical advice concerns only the application of § 7805(b), the
taxpayer has the right to a conference in EP or EO Technical in accordance with the pro-
visions of section 14 of this revenue procedure.
If the request for application of § 7805(b) is included in the request for technical advice
on the substantive issues or is made before the conference of right on the substantive
issues, the § 7805(b) issues will be discussed at the taxpayer’s one conference of right.
If the request for the application of § 7805(b) is made as part of a pending technical
advice request after a conference has been held on the substantive issues, and the Service
determines that there is justification for having delayed the request, then the taxpayer will
have the right to one conference of right concerning the application of § 7805(b), with the
conference limited to discussion of this issue.
Exhaustion of administrative .07 Where the applicant has requested EP Determinations to seek technical advice on
remedies—employee plans the applicability of § 7805(b) relief to a qualification issue under § 401(a) pursuant to a
determination letter requests determination letter request, the applicant’s administrative remedies will not be considered
exhausted until EP Technical has a reasonable time to act on the request for technical
advice. (See section 20 of Rev. Proc. 2001–6.)
Exhaustion of administrative .08 Where technical advice has been requested pursuant to an exempt organization’s
remedies—exempt request for § 7805(b) relief from the retroactive application of an adverse determination
organization matters within the meaning of § 7428(a)(1), the exempt organization’s administrative remedies
will not be considered exhausted, within the meaning of § 7428(b)(2), until EO Technical
has a reasonable time to act on the request for technical advice.
SECTION 20. WHAT IS THE Rev. Proc. 2000–5 is superseded.

PROCEDURE ON OTHER DOCUMENTS?
January 2, 2001 190 2001–1 I.R.B.

SECTION 21. EFFECTIVE DATE This revenue procedure is effective January 15, 2001.
Reduction Act (44 U.S.C. § 3507) under control number 1545-1520.
lection of information unless the collection of information displays a valid control num-
ber.
The collections of information in this revenue procedure are in sections 6.03, 9, 10.01,
10.02, 11.03, 11.04, 11.05, 12.02, 12.03, 13.01, 14.03, 14.10, 16.10, 16.12, 17.04, 19.03,
19.04, and 19.05. This information is required to evaluate and process the request for a
technical advice memorandum. In addition, this information will be used to help the
Service delete certain information from the text of the technical advice memorandum
before it is made available for public inspection, as required by § 6110. The collections of
information are required to obtain a technical advice memorandum. The likely respon-
dents are businesses or other for-profit institutions and not-for-profit institutions.
The estimated annual burden per respondent/recordkeeper varies from 4 hours to 60

hours, depending on individual circumstances, with an estimated average of 19.5 hours.
The estimated number of respondents and/or recordkeepers is 100.
The estimated annual frequency of responses is one request per applicant.

DRAFTING INFORMATION The principal author of this revenue procedure is Michael Rubin of Employee Plans, Tax
Exempt and Government Entities Division. For further information regarding how this
revenue procedure applies to employee plans matters, please contact Mr. Rubin at (202)
283-9528. For exempt organizations matters, please contact Ms. Susan L. Paul at (202)
283-8959. These telephone numbers are not toll-free.
2001–1 I.R.B. 191 January 2, 2001

INDEX
—procedure for submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 16.02, 16.05, 16.10
after conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 14.10
—proposed deletions under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 10.05
Chief Counsel
—jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 5.01
Conferences
—offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sections 11.02, 14.01, 14.09
exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sections 11.06, 12.04, 16.12
—pre-submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 9
—scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 14
request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.07, 14.08, 19.06
telephone conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 14.11
Definition - technical advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..section 3
Extension of Time
—to appeal decision not to request technical advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 12.02
—to disagree with statement of facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 11.03, 11.04
—to schedule conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sections 14.03, 14.04
—to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.10, 16.10
Farmers’ Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 4.02, 5.01
Letter Ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 18.06
Mandatory Technical Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..sections 4.04, 7.01
Paperwork Reduction Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 22
Perjury Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.10, 16.10
Power of Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 10.08
Public Disclosure under § 6110
—deletion statement required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 10.05
exception when § 6104 applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 10.04
failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 11.05
—notice of intention to disclose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 17.03
protesting deletions not made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 16.12, 17.04
Representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.08, 16.10
Retroactive Effect
—in general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 18.02—.06
on letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 18.06
—request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 19
employee plans determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 19.07
exempt organization matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 19.08
format of request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 19.03, 19.04
scheduling conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 14.07, 14.09, 19.06
Revenue Rulings
—effect on continuing transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 18.04, 18.05
request to limit retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . sections 19.01—.05
Section 301.9100–1 Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 6
January 2, 2001 192 2001–1 I.R.B.

Status of Technical Advice Request
—to EP or EO Examinations Area or
EP or EO Determinations or appeals office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 15.02
—to taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 15.01
Where to Send
—additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 16.11
—technical advice request from appeals office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 10.06
—technical advice request from EP or EO Examinations or
EP or EO Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .section 10.06
Withdrawal of Technical Advice Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 13
2001–1 I.R.B. 193 January 2, 2001

Rev. Proc. 2001–6

TABLE OF CONTENTS
SECTION 1. WHAT IS p. 199 .01 Purpose of revenue procedure

THE PURPOSE OF THIS
REVENUE PROCEDURE? .02 Organization of revenue procedure
SECTION 2. WHAT CHANGES p. 199 .01 In general

HAVE BEEN MADE TO
THIS PROCEDURE? .02 GUST determination letter program
.03 Other changes
PART I. PROCEDURES FOR DETERMINATION LETTER REQUESTS
SECTION 3. ON WHAT p. 200 .01 Types of requests

ISSUES MAY TAXPAYERS
REQUEST WRITTEN .02 Areas in which determination letters will not be issued
GUIDANCE UNDER THIS
PROCEDURE? .03 GUST determination letter program
SECTION 4. ON WHAT p. 203 .01 Tax Exempt and Government Entities

ISSUES MUST WRITTEN
GUIDANCE BE REQUESTED .02 Chief Counsel’s revenue procedure
UNDER DIFFERENT
PROCEDURES?
SECTION 5. WHAT IS THE p. 203 .01 Scope

GENERAL SCOPE OF A
DETERMINATION LETTER? .02 All form and certain non-form requirements generally reviewed
.03 Nondiscrimination in amount requirement
.04 Average benefit test requirement
.05 Nondiscriminatory current availability requirement
.06 Effective availability requirement
.07 Other limits on scope of determination letter
.08 Publication 794
SECTION 6. WHAT IS THE p. 204 .01 Scope

GENERAL PROCEDURE
FOR REQUESTING .02 Qualified trusteed plans
.03 Qualified nontrusteed annuity plans
.04 Complete information required
.05 Complete copy of plan and trust required
.06 Section 9 of Rev. Proc. 2001–4 applies
.07 Separate application required for each single § 414(l) plan
January 2, 2001 194 2001–1 I.R.B.

.08 Schedule Q
.09 Prior letters
.10 User fees
.11 Interested party notification and comment
.12 Contrary authority must be distinguished
.13 Employer/employee relationship
.14 Incomplete applications returned
.15 Effect of failure to disclose material fact
.16 Data requirements
.17 Where to file request
.18 Withdrawal of requests
.19 Right to status conference
.20 How to request status conference
SECTION 7. INITIAL p. 207 .01 Scope

QUALIFICATION, ETC.
.02 Forms
.03 Application for amendments must include copy of plan
.04 Restatements may be required
.05 Controlled groups, etc.
SECTION 8. MASTER & p. 209 .01 Scope

PROTOTYPE PLANS
.02 Determination letter may be necessary for reliance
.03 Forms
.04 Required information
.05 Special rules for standardized plans
.06 Amended plan is treated as an individually-designed plan
.07 Requests made prior to the issuance of opinion or notification letter
SECTION 9. VOLUME p. 210 .01 Scope

SUBMITTER PLANS
.02 Purpose of volume submitter program
.03 Description of volume submitter program
.04 Definition of volume submitter plan
2001–1 I.R.B. 195 January 2, 2001

.05 Incorporation by reference
.06 User fees
.07 Advisory letter for specimen plan
.08 Requests for information
.09 Determination letter for adoption of volume submitter plan
SECTION 10. MULTIPLE p. 213 .01 Scope

EMPLOYER PLANS
.02 Form 5300 and Schedule Q
.03 Multiple employer M&P plans
.04 Where to file
.05 Preliminary approval for certain multiple employer M&P plans
.06 Determination letter sent to each employer
.07 Addition of employers
SECTION 11. MINOR p. 214 .01 Scope

AMENDMENT OF
PREVIOUSLY .02 Form 6406
APPROVED PLAN
.03 Additional information
.04 Minor amendment procedures may not be used for complex amendments or
GUST letter
.05 EP Determinations has discretion to determine whether use of minor amend-

ment procedure is appropriate
SECTION 12. TERMINATION p. 214 .01 Scope

OR DISCONTINUANCE OF
CONTRIBUTIONS; NOTICE .02 Forms
OF MERGERS,
CONSOLIDATIONS, ETC. .03 Supplemental information
.04 Required demonstration of nondiscrimination requirements
.05 Compliance with Title IV of ERISA
.06 Termination prior to time for amending for change in law
SECTION 13. GROUP TRUSTS p. 216 .01 Scope
.02 Required information
SECTION 14. AFFILIATED p. 216 .01 Scope

SERVICE GROUPS;
LEASED EMPLOYEES .02 Types of requests under § 414(m) and § 414(n)
.03 Employer must request the determination under § 414(m) or § 414(n)
January 2, 2001 196 2001–1 I.R.B.

.04 Forms
.05 Employer is responsible for determining status under § 414(m) and § 414(n)
.06 Omission of material fact
.07 Service will indicate whether § 414(m) or § 414(n) was considered
.08 M&P plans
.09 Required information for § 414(m) determination
.10 Required information for § 414(n) determination
SECTION 15. WAIVER OF p. 218 .01 Scope

MINIMUM FUNDING
.02 Applicability of Rev. Proc. 94–41
.03 Waiver and determination letter request submitted to national office
.04 Handling of the request
.05 Interested party notice and comment
.06 When waiver request should be submitted
SECTION 16. SECTION p. 220 .01 Scope

401(h) AND § 420
DETERMINATION LETTERS .02 Required information for § 401(h) determination
.03 Required information for § 420 determination
PART II. INTERESTED PARTY NOTICE AND COMMENT
SECTION 17. WHAT RIGHTS p. 221 .01 Rights of interested parties

TO NOTICE AND COMMENT
DO INTERESTED PARTIES .02 Comments by interested parties
HAVE?
.03 Requests for DOL to submit comments
.04 Right to comment if DOL declines to comment
.05 Confidentiality of comments
.06 Availability of comments
.07 When comments are deemed made
SECTION 18. WHAT ARE THE p. 224 .01 Notice to interested parties
GENERAL RULES FOR
NOTICE TO INTERESTED .02 Time when notice must be given
PARTIES?
.03 Content of notice
.04 Procedures for making information available to interested parties
.05 Information to be available to interested parties
.06 Special rules if there are less than 26 participants
.07 Information described in § 6104(a)(1)(D) should not be included
2001–1 I.R.B. 197 January 2, 2001

.08 Availability of additional information to interested parties
.09 Availability of notice to interested parties
PART III. PROCESSING DETERMINATION LETTER REQUESTS
SECTION 19. HOW DOES p. 226 .01 Oral advice

THE SERVICE HANDLE
DETERMINATION LETTER .02 Conferences
REQUESTS?
.03 Determination letter based solely on administrative record
.04 Notice of final determination
.05 Issuance of the notice of final determination
SECTION 20. EXHAUSTION p. 228 .01 In general

OF ADMINISTRATIVE
REMEDIES .02 Steps for exhausting administrative remedies
.03 Applicant’s request for § 7805(b) relief
.04 Interested parties
.05 Deemed exhaustion of administrative remedies
.06 Service must act on appeal
.07 Service must act on § 7805(b) request
.08 Effect of technical advice request
SECTION 21. WHAT p. 229 .01 Scope of reliance on determination letter

EFFECT WILL AN EMPLOYEE
PLAN DETERMINATION .02 Effect of determination letter on minor plan amendment
LETTER HAVE?
.03 Sections 13 and 14 of Rev. Proc. 2001–4 applicable
.04 Effect of subsequent publication of revenue ruling, etc.
.05 Determination letter does not apply to taxability issues
SECTION 22. EFFECT ON p. 230

OTHER REVENUE
PROCEDURES
SECTION 23. EFFECTIVE DATE p. 230

REDUCTION ACT
EXHIBIT p. 231
APPENDIX §§ 401(h) p. 234

AND 420 DETERMINATION
LETTERS
January 2, 2001 198 2001–1 I.R.B.

PURPOSE OF THIS
REVENUE PROCEDURE?
Purpose of revenue .01 This revenue procedure sets forth the procedures of the various offices of the
procedure Internal Revenue Service for issuing determination letters on the qualified status of pen-
sion, profit-sharing, stock bonus, annuity, and employee stock ownership plans (ESOPs)
under §§ 401, 403(a), 409 and 4975(e)(7) of the Internal Revenue Code of 1986, and the
status for exemption of any related trusts or custodial accounts under § 501(a).
Organization of revenue .02 Part I of this revenue procedure contains instructions for requesting determination
procedure letters for various types of plans and transactions. Part II contains procedures for provid-
ing notice to interested parties and for interested parties to comment on determination let-
ter requests. Part III contains procedures concerning the processing of determination let-
ter requests and describes the effect of a determination letter.
SECTION 2. WHAT
CHANGES HAVE BEEN
MADE TO THIS PROCEDURE?
In general .01 This revenue procedure is a general update of Rev. Proc. 2000-6, 2000-1 I.R.B. 187,
which contains the Service’s general procedures for employee plans determination letter
requests. Most of the changes to Rev. Proc. 2000-6 involve minor revisions, such as
updating citations to other revenue procedures.
GUST determination .02 Section 3, relating to issues on which taxpayers may request guidance under the pro-
letter program cedure has been revised to provide that, in accordance with Rev. Proc. 2000-27, 2000-26
I.R.B. 1272, determination letter applications for individually-designed plans, including
volume submitter plans, are now reviewed taking into account all the changes in the quali-
fication requirements made by GUST, including those changes that are first effective in plan
years beginning after December 31, 1998. It also provides that applicants may not request
pre-GATT or GUST I determination letters for any application filed after March 3, 2001.
Other changes .03 The following additional changes have been made:
(1) Section 5, relating to the scope of a determination letter, has been modified by the
addition of section 5.08, which provides that the scope of a determination letter may be
further defined by the specific terms of the letter and by Publication 794, Favorable
Determination Letter.
(2) Section 6.14, relating to incomplete applications, has been clarified to provide that
the failure to provide information required by an application, including any supplemental
information required by the instructions for the application, may result in the application
being returned to the applicant as incomplete.
(3) Section 8.05, relating to the special rules for standardized plans, has been revised to
reflect the provisions of Rev. Proc. 2000-20, 2000-6 I.R.B. 553.
(4) Section 9, relating to volume submitter plans, has been revised to:
(a) cross-reference the lead specimen plan procedures described in section 17.02 of
Rev. Proc. 2000-20;
(b) provide that practitioners must reply to requests for changes to the specimen
plan within 30 days of the request;
(c) include in the practitioner representation that is required to be submitted with an

employer’s determination letter application a statement that the employer’s plan satis-
2001–1 I.R.B. 199 January 2, 2001

fies all requirements of GUST (where the latest advisory letter for the specimen plan
does not consider all requirements of GUST); and
(d) clarify that employers’ plans will be considered volume submitter plans only if
the plans are adopted on or after the date of the volume submitter advisory letter.
(5) Section 10, relating to multiple employer plans, has been revised to change the
address where applications are to be sent.
(6) Section 11, relating to minor amendments, has been revised to provide that Form
6406 may be used to request determination letters for minor amendments to multiemploy-
er and multiple employer plans but generally may not be used to request a GUST letter.
(7) Section 12, relating to plan terminations, has been revised to point out some of the
supplemental information that is required to be submitted with the application.
(8) Section 15, relating to waiver of minimum funding, has been revised to change the
address where waiver requests and determination letter applications on related plan
amendments are to be sent.
PART I. PROCEDURES FOR DETERMINATION LETTER REQUESTS

MAY TAXPAYERS REQUEST
WRITTEN GUIDANCE UNDER
THIS PROCEDURE?
Types of requests .01 Determination letters may be requested on completed and proposed transactions as
set forth in the table below:
REV. PROC.
TYPE OF REQUEST FORMS SECTION
1. Initial Qualification, etc.

a. Individually-Designed Plans (other than collectively 5300, 7
bargained plans) Schedule Q
b. ESOPs 5300, 5309, 7
Schedule Q
c. Collectively Bargained Plans 5303, 7
Schedule Q,
d. Adoptions of Master & Prototype Plans (including a 5307, 8
collectively bargained plan if no non-collectively Schedule Q
bargained employees are in the plan)
e. Adoptions of Volume Submitter Plans (including a 5307, 9
collectively bargained plan if no non-collectively Schedule Q
bargained employees are in the plan)
f. Multiple Employer Plans 5300, 10
Schedule Q
g. Group Trusts Cover letter 13
January 2, 2001 200 2001–1 I.R.B.

REV. PROC.
TYPE OF REQUEST FORMS SECTION
2. Minor Amendments 6406 11
3. Termination
a. In general 5310, 6088, 12
Schedule Q
b. Multiemployer plan covered by PBGC insurance 5303, 6088, 12
Schedule Q
Note: Form 5310-A, Notice of Plan Merger, Consolidation, Spinoff or Transfer of Plan Assets or Liabilities -
Notice of Qualified Separate Lines of Business, generally must be filed not less than 30 days before the
merger, consolidation or transfer of assets and liabilities. The filing of Form 5310-A will not result in
the issuance of a determination letter.
4. Special Procedures
a. Affiliated Service Group Status (§ 414(m)), Leased 5300, 14
Employees (§ 414(n)) Schedule Q
b. Minimum Funding Waiver 5300, 15
Schedule Q
c. Section 401(h) Determination Letters 5300 series, 16
Schedule Q,
Cover letter,
Checklist
d. Section 420 Determination Letters Including Other Matters 5300 series, 16
Under § 401(a) Schedule Q,
Cover letter,
Checklist
e. Section 420 Determination Letters Excluding Other Matters Cover letter, 16
Under § 401(a) Checklist
Areas in which determination .02 Determination letters issued in accordance with this revenue procedure do not
letters will not be issued include determinations on the following issues within the jurisdiction of the
Commissioner, TE/GE:
(1) Issues involving §§ 72, 79, 105, 125, 127, 129, 402, 403 (other than 403(a)), 404,
409(l), 409(m), 412, 457, 511 through 515, and 4975 (other than 4975(e)(7)), unless these
determination letters are authorized under section 7 of Rev. Proc. 2001-4, page 121, this
Bulletin.
(2) Plans or plan amendments for which automatic approval is granted pursuant to sec-
tion 8.05 below.
(3) Plan amendments described below (these amendments will, to the extent provided,
be deemed not to alter the qualified status of a plan under § 401(a)).
(a) An amendment solely to permit a trust forming part of a plan to participate in a

pooled fund arrangement described in Rev. Rul. 81-100, 1981-1 C.B. 326;
(b) An amendment that merely adjusts the maximum limitations under § 415 to
reflect annual cost-of-living increases, other than an amendment that adds an automat-
ic cost-of-living adjustment provision to the plan; and
2001–1 I.R.B. 201 January 2, 2001

(c) An amendment solely to include language pursuant to § 403(c)(2) of Title I of
the Employee Retirement Income Security Act of 1974 (ERISA) concerning the rever-
sion of employer contributions made as a result of mistake of fact.
(4) This section applies to determination letter requests with respect to plans that com-
bine an ESOP (as defined in § 4975(e)(7) of the Code) with retiree medical benefit fea-
tures described in § 401(h) (HSOPs).
(a) In general, determination letters will not be issued with respect to plans that
combine an ESOP with an HSOP with respect to:
(i) whether the requirements of § 4975(e)(7) are satisfied;
(ii) whether the requirements of § 401(h) are satisfied; or
(iii) whether the combination of an ESOP with an HSOP in a plan adversely

affects its qualification under § 401(a).
(b) A plan is considered to combine an ESOP with an HSOP if it contains ESOP pro-
visions and § 401(h) provisions.
(c) However, an arrangement will not be considered covered by section 3.02(4) of

this revenue procedure if, under the provisions of the plan, the following conditions are
satisfied:
(i) No individual accounts are maintained in the § 401(h) account (except as

required by § 401(h)(6));
(ii) No employer securities are held in the § 401(h) account;
(iii) The § 401(h) account does not contain the proceeds (directly or otherwise)
of an exempt loan as defined in § 54.4975-7(b)(1)(iii) of the Pension Excise Tax
Regulations; and
(iv) The amount of actual contributions to provide § 401(h) benefits (when added
to actual contributions for life insurance protection under the plan) does not exceed
25 percent of the sum of: (1) the amount of cash contributions actually allocated to
participants’ accounts in the plan and (2) the amount of cash contributions used to
repay principal with respect to the exempt loan, both determined on an aggregate
basis since the inception of the § 401(h) arrangement.
GUST determination .03 As provided in Rev. Proc. 2000-27, determination letter applications for individual-
letter program ly-designed plans, including volume submitter plans, are now reviewed taking into
account all the changes in the qualification requirements made by GUST, including those
changes that are first effective in plan years beginning after December 31, 1998. “GUST”
refers to:
(1) the Uruguay Round Agreements Act, Pub. L. 103-465;
(2) the Uniformed Services Employment and Reemployment Rights Act of 1994, Pub.
L. 103-353;
(3) the Small Business Job Protection Act of 1996, Pub. L. 104-188;
(4) the Taxpayer Relief Act of 1997, Pub. L. 105-34; and
(5) the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-
206.)
January 2, 2001 202 2001–1 I.R.B.

Rev. Proc. 2000-27 also provided that until further notice applicants could continue to
request either of two types of limited scope determination letters which take into account
either none of the requirements of GUST or only those changes that are first effective in
plan years beginning before January 1, 1999. These letters are referred to as pre-GATT
and GUST I letters, respectively. Effective with respect to applications that are filed after
March 3, 2001, the Service will no longer accept pre-GATT and GUST I determination let-
ter applications for individually-designed plans, including volume submitter plans. With
respect to master and prototype (M&P) plans, determination letters will take into account
the changes made by GUST to the extent the M&P sponsor has amended the plan for
GUST and received a favorable opinion letter.

BE REQUESTED UNDER
TE/GE .01 Other procedures for obtaining rulings, determination letters, opinion letters, etc.,
on matters within the jurisdiction of the Commissioner, TE/GE are contained in the fol-
lowing revenue procedures:
(1) Employee Plans Technical (EP Technical) letter rulings, information letters, etc.:
See Rev. Proc. 2001-4.
(2) M&P plans: See Rev. Proc. 2000-20, as modified by Rev. Proc. 2000-27.
(3) Technical advice requests: See Rev. Proc. 2001-5, page 164, this Bulletin.
Chief Counsel’s revenue .02 For the procedures for obtaining letter rulings, determination letters, etc., on matters
procedure within the jurisdiction of the Division Counsel/Associate Chief Counsel(Tax Exempt and
Government Entities), or within the jurisdiction of other offices of Chief Counsel, see Rev.
Proc. 2001-1, page 1, this Bulletin.

GENERAL SCOPE OF A
DETERMINATION LETTER?
Scope .01 This section delineates, generally, the scope of an employee plan determination let-
ter. It identifies certain qualification requirements, relating to nondiscrimination, that are
considered by the Service in its review of a plan only at the election of the applicant. This
section also identifies certain qualification requirements that are not considered by the
Service in its review of a plan and with respect to which determination letters do not pro-
vide reliance. This section applies to all determination letters other than letters issued in
response to an application filed on Form 6406, Short Form Application for Determination
for Minor Amendment of Employee Benefit Plan; letters relating to the qualified status of
group trusts; and letters relating solely to the requirements of § 420, regarding the transfer
of assets in a defined benefit plan to a health benefit account described in § 401(h). For
additional information pertaining to the scope of reliance on a determination letter, see sec-
tion 21 of this revenue procedure.
All form and certain .02 In general, employee plans are reviewed by the Service for compliance with the
non-form requirements form requirements (that is, those plan provisions that are required as a condition of quali-
generally reviewed fication under § 401(a)). In addition, certain non-form qualification requirements, includ-
ing, for example, the minimum participation requirements of § 401(a)(26), are considered
by the Service in its review of a plan. As described below, certain other nondiscrimination
requirements are not considered unless the applicant specifically requests that they be con-
sidered. Unless otherwise stated, a plan is reviewed on the basis of the requirements that
apply to the plan as of the date the application is received, except for terminating plans.
For terminating plans, the requirements are those that apply as of the date of termination.
2001–1 I.R.B. 203 January 2, 2001

Nondiscrimination in .03 Unless the applicant elects otherwise, a plan that is not intended to satisfy one of
amount requirement the design-based safe harbors described in §§ 1.401(a)(4)-2(b)(2), 1.401(a)(4)-3(b)(3),
1.401(a)(4)-3(b)(4)(i)(C)(1), 1.401(a)(4)-3(b)(4)(i)(C)(2), 1.401(a)(4)-3(b)(5), 1.401(a)(4)8-
(b)(3), or 1.401(a)(4)-8(c)(3)(iii)(B) of the Income Tax Regulations (herein referred to as the
“design-based safe harbors”) will not be reviewed for (and a determination letter may not be
relied on with respect to) the nondiscrimination in amount of contributions or benefits
requirement of § 1.401(a)(4)-1(b)(2).
Average benefit test requirement .04 Unless the applicant elects otherwise, a plan that does not satisfy the ratio percent-
age test of § 410(b)(1) and the regulations thereunder will not be reviewed for (and deter-
mination letters may not be relied on with respect to) the average benefit test of § 410(b)(2)
and the regulations thereunder.
Nondiscriminatory current .05 Any determination letter that expresses an opinion that the plan satisfies the mini-
availability requirement mum coverage requirements of § 410(b) also will express an opinion that the plan satis-
fies the nondiscriminatory current availability requirements of § 1.401(a)(4)-4(b) with
respect to those benefits, rights, and features that are currently available (within the mean-
ing of
§ 1.401(a)(4)-4(b)(2)) to all employees in the plan’s coverage group. The plan’s coverage
group consists of those employees who are treated as currently benefiting under the plan
(within the meaning of § 1.410(b)-3(a)) for purposes of demonstrating that the plan satis-
fies the minimum coverage requirements of § 410(b). Applications will not be reviewed
for (and determination letters may not be relied on with respect to) whether the plan satis-
fies the requirements of § 1.401(a)(4)-4(b) with respect to any benefit, right, or feature
other than the ones described above, except those that are specified by the applicant and
for which the applicant has provided information relevant to the determination.
Effective availability requirement .06 In no event will any plan be reviewed to determine (and determination letters may
not be relied on with respect to) whether any benefit, right, or feature under the plan sat-
isfies the effective availability requirement of § 1.401(a)(4)-4(c).
Other limits on scope of .07 Determination letters may generally be relied on with respect to whether the timing
determination letter of a plan amendment (or series of amendments) satisfies the nondiscrimination require-
ments of § 1.401(a)(4)-5(a) of the regulations, unless the plan amendment is part of a pat-
tern of amendments that significantly discriminates in favor of highly compensated
employees. A favorable determination letter does not provide reliance for purposes of
§ 404 and § 412 with respect to whether an interest rate (or any other actuarial assump-
tion) is reasonable. Furthermore, a favorable determination letter will not constitute a
determination with respect to the use of the substantiation guidelines contained in Rev.
Proc. 93-42, 1993-2 C.B. 540; e.g., a determination letter will not consider whether data
submitted with an application is substantiation quality. Lastly, a favorable determination
letter will not constitute a determination with respect to whether any requirements of §
414(r), relating to whether an employer is operating qualified separate lines of business,
are satisfied. However, if an employer is relying on § 414(r) to satisfy the minimum cov-
erage or minimum participation requirements, a determination letter will take into account
whether the plan satisfies the nondiscriminatory classification test of § 410(b)(5)(B), and,
if the requirements of § 410(b) or § 401(a)(26) are to be applied on an employer-wide basis
under the special rules for employer-wide plans, a determination letter will take into
account whether the requirements of the applicable special rule set forth in § 1.414(r)-
1(c)(2)(ii) or § 1.414(r)-1(c)(3)(ii) are met.
Publication 794 .08 Publication 794, Favorable Determination Letter, contains other information regard-
ing the scope of a determination letter. In addition, the specific terms of each letter may
further define its scope and the extent to which it may be relied upon.

GENERAL PROCEDURE FOR
REQUESTING DETERMINATION
LETTERS?
January 2, 2001 204 2001–1 I.R.B.
Scope .01 This section contains procedures that are generally applicable to all determination
letter requests. Additional procedures for specific requests are contained in sections 7
through 16.
Qualified trusteed plans .02 A trust created or organized in the United States and forming part of a pension, prof-
it-sharing, stock bonus or annuity plan of an employer for the exclusive benefit of its
employees or their beneficiaries that meets the requirements of § 401 is a qualified trust
and is exempt from federal income tax under § 501(a) unless the exemption is denied
under § 502, relating to feeder organizations, or § 503, relating to prohibited transactions,
if, in the latter case, the plan is one described in § 503(a)(1)(B).
Qualified nontrusteed .03 A nontrusteed annuity plan that meets the applicable requirements of § 401 and
annuity plans other additional requirements as provided under § 403(a) and § 404(a)(2), (relating to
deductions of employer contributions for the purchase of retirement annuities), qualifies
for the special tax treatment under § 404(a)(2), and the other sections of the Code, if the
additional provisions of such other sections are also met.
Complete information required .04 An applicant requesting a determination letter must file the material required by this
revenue procedure with the Employee Plans Determinations manager (EP Determinations)
at the address in section 6.17. The filing of the application, when accompanied by all
information and documents required by this revenue procedure, will generally serve to
provide the Service with the information required to make the requested determination.
However, in making the determination, the Service may require the submission of addi-
tional information. Information submitted to the Service in connection with an application
for determination may be subject to public inspection to the extent provided by § 6104.
Complete copy of plan and .05 Except in the case of applications involving master and prototype plans filed on
trust instrument required Form 5307, or minor amendments described in section 11, a complete copy of the plan and
trust instrument is required to be included with the determination letter application. See
sections 7.03 and 7.04 for what must be included with applications involving plan amend-
ments that are not minor amendments.
Section 9 of Rev. Proc. .06 Section 9 of Rev. Proc. 2001-4 is generally applicable to requests for determination
2001-4 applies letters under this revenue procedure.
Separate application for .07 A separate application is required for each single plan within the meaning of
each single § 414(l) plan § 414(l). This requirement does not pertain to applications regarding the qualified status
of group trusts.
Schedule Q .08 Schedule Q (Form 5300) must be filed with all determination letter applications,
other than applications that (1) are filed on Form 6406, (2) relate to government plans or
to the qualified status of group trusts, or (3) relate solely to the requirements of § 420. The
applicant must indicate on Schedule Q whether a determination of any of the requirements
referred to in sections 5.03 through 5.05 is requested, and must include with the applica-
tion form the material and demonstrations called for in the instructions to Schedule Q.
Prior letters .09 If the plan has received a favorable determination letter in the past, the application
must include a copy of the latest determination letter, if available. If the letter is not avail-
able, an explanation must be included with the application.
User fees .10 The appropriate user fee must be paid according to the procedures of Rev. Proc.
2001-8, page 239, this Bulletin. Form 8717, User Fee for Employee Plan Determination
Letter Request, should accompany each determination letter request.
Interested party notification .11 Before filing an application, the applicant requesting a determination letter must sat-
and comment isfy the requirements of § 3001(a) of ERISA, and § 7476(b)(2) of the Code and the regu-
lations thereunder, which provide that an applicant requesting a determination letter on the
qualified status of certain retirement plans must notify interested parties of such applica-
2001–1 I.R.B. 205 January 2, 2001

tion. The general rules of the Service with respect to notifying interested parties of
requests for determination letters relating to the qualification of plans involving §§ 401
and 403(a) are set out below in sections 17 and 18 of this revenue procedure.
Contrary authority must be .12 If the application for determination involves an issue where contrary authorities
distinguished exist, failure to disclose or distinguish such significant contrary authorities may result in
requests for additional information, which will delay action on the application.
Employer/employee relationship .13 The Service ordinarily does not make determinations regarding the existence of an
employer-employee relationship as part of its determination of the qualification of a plan,
but relies on the applicant’s representations or assumptions, stated or implicit, regarding
the existence of such a relationship. The Service will, however, make a determination
regarding the existence of an employer-employee relationship when so requested by the
applicant. In such cases, the application with respect to the qualification of the plan should
be filed in accordance with the provisions of this revenue procedure, contain the informa-
tion and documents in the instructions to the application, and be accompanied by a com-
pleted Form SS-8, Determination of Employee Work Status for Purposes of Federal
Employment Taxes and Income Tax Withholding, and any information and copies of doc-
uments the organization deems appropriate to establish its status. The Service may, in
addition, require further information that it considers necessary to determine the employ-
ment status of the individuals involved or the qualification of the plan. After the employ-
er-employee relationships have been determined, EP Determinations may issue a determi-
nation letter as to the qualification of the plan.
Incomplete applications returned .14 If an applicant requesting a determination letter does not comply with all the
required provisions of this revenue procedure, EP Determinations, in its discretion, may
return the application and point out to the applicant those provisions which have not been
met. The failure to provide information required by an application, including any supple-
mental information required by the instructions for the application, may result in the appli-
cation being returned to the applicant as incomplete. The request will also be returned pur-
suant to Rev. Proc. 2001-8 if the correct user fee is not attached. If such a request is
returned to the applicant, the 270-day period described in § 7476(b)(3) will not begin to
run until such time as the provisions of this section have been satisfied.
Effect of failure to disclose .15 The Service may determine, based on the application form, the extent of review of
material fact the plan document. A failure to disclose a material fact or misrepresentation of a material
fact on the application may adversely affect the reliance which would otherwise be
obtained through issuance by the Service of a favorable determination letter. Similarly,
failure to accurately provide any of the information called for on any form required by this
revenue procedure may result in no reliance.
Data requirements .16 The applicant is responsible for the accuracy of any factual representations and con-
clusions contained in the application. In some circumstances, applicants may not be able
to use precise data in preparing demonstrations or schedules that may be required to be
submitted with the application. Therefore, the use of estimated data in these demonstra-
tions and schedules is not prohibited. In addition, the data used may be for a prior plan
year, provided the following conditions are satisfied: (1) the data is the most recent data
available, (2) there is no misstatement or omission of material fact with respect to such
prior year’s data, (3) there has been no material change in the facts (including a change in
the benefits provided under the plan and employee demographics) since such prior plan
year, (4) the same data is used throughout the application, (5) the data is relevant to the
operational effect of the plan provisions that are under review, and (6) the applicant clear-
ly discloses that prior year’s data is being submitted with the application. The use of esti-
mated or prior year’s data is not a misrepresentation of material fact. A determination let-
ter that is based on estimated or prior year’s data, however, may not be relied upon to the
extent that such data does not satisfy the substantiation guidelines in Rev. Proc. 93-42.
Regardless of whether the data is actual or estimated, or whether it is for the current or a
prior year, data that is presented in a determination letter application must reflect any
January 2, 2001 206 2001–1 I.R.B.

changes in the law that are considered by the Service in its determination of the plan’s
qualified status. Thus, data presented in an application for a determination letter that takes
into account the qualification changes in GUST will have to reflect the changes to the qual-
ification requirements made by these laws, including, for example, the change to the def-
inition of highly compensated employee in § 414(q).
Where to file request .17 Requests for determination letters are to be addressed to EP Determinations at the
following address:

P.O. Box 192
Requests shipped by Express Mail or a delivery service should be sent to:

201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011
Withdrawal of requests .18 The applicant’s request for a determination letter may be withdrawn by a written
request at any time prior to the issuance of a final adverse determination letter. If an appeal
to a proposed adverse determination letter is filed, a request for a determination letter may
be withdrawn at any time prior to the forwarding of the proposed adverse action to the
chief, appeals office. In the case of a withdrawal, the Service will not issue a determina-
tion of any type. A failure to issue a determination letter as a result of a withdrawal will
not be considered a failure of the Secretary or his delegate to make a determination with-
in the meaning of § 7476. However, the Service may consider the information submitted
in connection with the withdrawn request in a subsequent examination. Generally, the user
fee will not be refunded if the application is withdrawn.
Right to status conference .19 An applicant for a determination letter has the right to a have a conference with the
EP Determinations manager concerning the status of the application if the application has
been pending at least 270 days. The status conference may be by phone or in person, as
mutually agreed upon. During the conference, any issues relevant to the processing of the
application may be addressed, but the conference will not involve substantive discussion
of technical issues. No tape, stenographic, or other verbatim recording of a status confer-
ence may be made by any party. Subsequent status conferences may also be requested if
at least 90 days have passed since the last preceding status conference.
How to request status conference .20 A request for a status conference with the EP Determinations manager is to be made
in writing and is to be sent to the specialist assigned to review the application or, if the
applicant does not know who is reviewing the application, to the EP Determinations man-
ager at the address in section 6.17. If, pursuant to section 15, the application for a deter-
mination letter has been submitted to Employee Plans Technical (EP Technical) together
with a request for a waiver of minimum funding, the request for a status conference should
be sent to the actuary assigned to review the application or to the Actuarial manager, at the
address in section 15.03. In this case, the right to a status conference will be with the EP
Technical Manager.
SECTION 7. INITIAL
QUALIFICATION, ETC.
Scope .01 This section contains the procedures for requesting determination letters for indi-
vidually-designed defined contribution and defined benefit plans including employee
stock ownership plans and collectively bargained plans in the following circumstances:
2001–1 I.R.B. 207 January 2, 2001

(1) Initial qualification.
(2) Amendment (other than minor amendments described in section 11 below for which
Form 6406 is appropriate).
(3) Restatement of plan.
(4) Qualification of a plan in the event of a partial termination.
(5) Change in scope of determination letter. This means that the applicant has previ-
ously received a favorable determination letter for the plan and now wishes to modify the
scope of the letter, for example, by requesting the Service to review the plan for certain
nondiscrimination requirements that were not within the scope of the earlier letter.
(6) Other circumstances (excluding plan termination) such as a change in the demo-
graphics of the employer or a change in the method of testing the plan that was used in a
demonstration submitted in support of an earlier application.
Forms .02 A determination letter request for the items listed in section 7.01 is made by filing
the appropriate form according to the instructions to the form and any prevailing revenue
procedures, notices, and announcements.
(1) Form 5300, Application for Determination for Employee Benefit Plan, must be filed
to request a determination letter for plans other than collectively bargained plans.
(2) Form 5303, Application for Determination for Collectively Bargained Plan, must be
filed by a sponsor of a collectively bargained plan. If there is more than one plan, a sep-
arate Form 5303 must be filed for each plan.
(3) Form 5309, Application for Determination of Employee Stock Ownership Plan,
must be filed as an attachment with a Form 5300 or Form 5303 (if the ESOP is collectively
bargained), in order to request a determination whether the plan is an ESOP under § 409
or § 4975(e)(7).
(4) Schedule Q, (Form 5300) Nondiscrimination Requirements, must be filed as an

attachment with Form 5300 and Form 5303.
Application for amendments .03 Because a plan amendment, other than a minor amendment described in section 11,
must include copy of plan may affect other portions of a plan so as to cause plan disqualification, a determination let-
ter issued on such an amendment to a plan will express an opinion on the entire plan, as
amended. Therefore, the determination letter application must include a copy of the plan
and trust instrument plus all plan amendments made to the date of the application. The
application must also include a statement explaining how any amendments made since the
last determination letter affect the plan or any other plan maintained by the employer.
Restatements may be required .04 A restated plan is required to be submitted if four or more amendments (excluding
amendments making only non-substantive changes) have been made since the last restat-
ed plan was submitted. In addition, the Service may require restatement of a plan or sub-
mission of a working copy of the plan in a restated format when considered necessary. For
example, restatement may be required when there have been major changes in law. A
restated plan or a working copy of the plan in a restated format generally must be submit-
ted for a plan that has not previously received a determination letter that takes into account
all requirements of GUST. However, see section 3.04 of Rev. Proc. 2000-27 for excep-
tions to this requirement.
Controlled groups, etc. .05 For a controlled group of corporations as defined in § 414(b), trades or businesses
under common control as defined in § 414(c), an affiliated service group within the mean-
ing of § 414(m), and entities utilizing the services of leased employees within the mean-
January 2, 2001 208 2001–1 I.R.B.

ing of § 414(n), the coverage items on the application forms referred to in this revenue pro-
cedure must be completed as though the controlled group, commonly controlled trades or
businesses, affiliated service group, etc., constitutes a single entity. Leased employees
within the meaning of § 414(n) must be included as employees of the recipient entity
(except in the case of a safe-harbor plan described in § 414(n)(5)).
SECTION 8. MASTER &

PROTOTYPE PLANS
Scope .01 This section contains procedures for requesting determination letters relating to M&P
plans.
Determination letter may be .02 Except as provided in section 8.05, the issuance of a favorable opinion letter for an
necessary for reliance M&P plan does not constitute a determination that an employer adopting the sponsor’s
plan has reliance that the plan is qualified under § 401(a). In order to have reliance, an
employer must obtain a favorable determination letter. In general, determination letters
are requested for the employer’s adoption of an M&P plan, or for a change by the employ-
er in the choice of options offered by the sponsor of an M&P plan.
Forms .03 Form 5307, Application for Determination for Adopters of Master or Prototype,
Regional Prototype, or Volume Submitter Plan, must be filed to request a determination
letter for the adoption of an M&P plan. Schedule Q, (Form 5300) Nondiscrimination
Requirements, must be filed as an attachment to Form 5307. Form 5307 may also be filed
by adopters of M&P plans that are single employer collectively bargained plans that ben-
efit only collectively bargained employees described in § 1.410(b)-6(d)(2) and that auto-
matically satisfy the requirements of § 1.410(b)-2(b)(7).
Required information .04 The determination letter request must include the following:
(1) An adoption agreement showing which elections the employer is making with
respect to the elective provisions contained in the plan;
(2) A copy of the plan’s most recent opinion letter; and
(3) In the case of a determination letter request for an M&P plan that uses a separate trust
or custodial account, a copy of the employer’s trust or custodial account document.
Special rules for .05 The following procedures apply for an employer’s adoption of an M&P standard-
standardized plans ized plan or paired plan.
(1) An employer adopting a standardized form or paired plan may rely on that plan’s opin-
ion letter, except as provided in section 8.05(2), (3) and (4) below, if the following condi-
tions are satisfied:
(a) The sponsor of such plan or plans has a currently valid favorable opinion let-
ter; and
(b) The employer has followed the terms of the plan(s), and the coverage and con-
tributions or benefits under the plan(s) are not more favorable to highly compensated
employees (as defined in § 414(q)) than for other employees.
(2) Except in the case of a combination of paired plans or as otherwise provided in this
subsection, an employer may not rely on an opinion letter for a standardized plan, without
obtaining a determination letter, if the employer maintains at any time, or has maintained
at any time, another plan, including a standardized plan, that was qualified or determined
to be qualified covering some of the same participants. For this purpose, a plan that has
been properly replaced by the adoption of a standardized plan is not considered another
plan. The plan that has been replaced and the standardized plan must be of the same type
2001–1 I.R.B. 209 January 2, 2001

(e.g., both money purchase pension plans) in order for the employer to be able to rely on
the standardized plan without obtaining a determination letter. In addition, an employer
that adopts a standardized defined contribution plan will not be considered to have main-
tained another plan merely because the employer has maintained another defined contri-
bution plan(s), provided such other plan(s) has been terminated prior to the effective date
of the standardized plan and no annual additions have been credited to the account of any
participant under such other plan(s) as of any date within a limitation year of the stan-
dardized plan. Likewise, an employer that adopts a standardized defined contribution plan
that is first effective on or after the effective date of the repeal of § 415(e) will not be con-
sidered to have maintained another plan merely because the employer has maintained a
defined benefit plan(s), provided the defined benefit plan(s) has been terminated prior to
the effective date of the standardized defined contribution plan.
(3) An employer that has adopted a standardized defined benefit plan may rely on an
opinion letter with respect to the requirements of § 401(a)(26) only if the plan satisfies the
requirements of § 401(a)(26) with respect to its prior benefit structure or is deemed to sat-
isfy § 401(a)(26) under the regulations. However, an employer may request a determina-
tion letter if the employer wishes to have reliance as to whether the plan satisfies
§ 401(a)(26) with respect to its prior benefit structure.
(4) An employer that adopts a standardized plan may not rely on an opinion letter with
respect to: (a) whether the timing of any amendment to the plan (or series of amendments)
satisfies the nondiscrimination requirements of § 1.401(a)(4)-5(a), except with respect to
plan amendments granting past service that meet the safe harbor described in
§ 1.401(a)(4)-5(a)(3) and are not part of a pattern of amendments that significantly dis-
criminates in favor of highly compensated employees; or (b) whether the plan satisfies the
effective availability requirement of § 1.401(a)(4)-4(c) with respect to any benefit, right,
or feature. An employer that adopts a standardized plan as an amendment to a plan other
than a standardized plan may not rely on an opinion letter with respect to whether a bene-
fit, right, or feature that is prospectively eliminated satisfies the current availability
requirements of § 1.401(a)-4 of the regulations. Such an employer may request a deter-
mination letter if the employer wishes to have reliance as to whether the prospectively
eliminated benefit, right, or feature satisfies the current availability requirements. A stan-
dardized plan may give an employer the option to elect to continue to apply the pre-GUST
family aggregation rules in years beginning after December 31, 1996, or the combined
plan limit of § 415(e) in years beginning after December 31, 1999, to the extent such elec-
tion(s) conforms to the plan’s operation. However, an employer that elects to continue to
apply the pre-GUST family aggregation rules or the combined plan limit of § 415(e) will
not be able to rely on the opinion letter without a determination letter with respect to the
qualification of its plan for the years to which the election applies.
Amended plan is treated as .06 An employer that amends any provision of an M&P plan or its adoption agreement
an individually-designed plan (other than to choose among the options offered by the sponsor if the plan permits or con-
templates such options), or an employer that chooses to discontinue participation in such
a plan as amended by its sponsor and does not substitute another approved plan referred
to in this section 8 is considered to have adopted an individually-designed plan. The
requirements stated in this revenue procedure relating to the issuance of determination let-
ters for individually-designed plans will then apply to such plan.
Requests made prior to .07 An application submitted by an employer with respect to an M&P plan will be treat-
the issuance of opinion ed as an application for an individually-designed plan if it is submitted prior to the time
the M&P plan is approved.
SECTION 9. VOLUME
SUBMITTER PLANS
Scope .01 This section contains procedures for requesting advisory letters and determination
letters for volume submitter plans.
January 2, 2001 210 2001–1 I.R.B.

Purpose of volume submitter .02 The volume submitter program enables the Service to expedite the issuance of deter-
program mination letters in response to applications for approval of individually-designed plans.
Description of volume .03 Under the volume submitter program, a practitioner who qualifies may request the
submitter program Service to issue an advisory letter regarding a volume submitter specimen plan. A speci-
men plan is a sample plan of a practitioner (rather than the actual plan of an employer) that
contains provisions that are identical or substantially similar to the provisions in plans that
such practitioner’s clients have adopted or are expected to adopt. Once the Service has
approved the specimen plan, the practitioner will be able to file determination letter
requests on behalf of employers adopting substantially similar plans.
Definition of volume .04 A volume submitter plan is a profit-sharing plan (without a § 401(k) arrangement),
submitter plan a profit-sharing plan (with a § 401(k) arrangement), a money purchase pension plan, or a
defined benefit plan that is submitted under the procedures described in this section 9 for
filing requests for volume submitter advisory letters (with respect to the specimen plan)
and requests for determination letters (with respect to an employer’s adoption of a plan that
is substantially similar to an approved specimen plan). The Service will not accept vol-
ume submitter requests with respect to ESOPs or other stock bonus plans.
Incorporation by reference .05 Incorporation by reference in a volume submitter plan is subject to the limits
described in sections 5.18 and 8.03 of Rev. Proc. 2000-20.
User fees .06 Rev. Proc. 2001-8 provides reduced user fees for requests under the volume sub-
mitter program if certain requirements are satisfied. For adopting employers to be entitled
to file a request with the lower fees, the volume submitter practitioner must certify at the
time of filing the specimen plan that at least 30 employers are expected to adopt plans that
are substantially similar in form to the specimen plan. Also, the volume submitter practi-
tioner must be a representative of the employer when the employer’s determination letter
application is filed. Although the volume submitter is not required to submit a list of
adopting employers, the Service reserves the right to request such a list. Reduced user fees
also apply to advisory opinion letter applications for volume submitter specimen plans that
are identical to volume submitter lead specimen plans. See section 17.02 of Rev. Proc.
2000-20.
Advisory letter for specimen plan .07 With respect to advisory letters for volume submitter specimen plans:
(1) A request for approval of a volume submitter specimen plan must be sent to the vol-
ume submitter coordinator for EP Determinations at the following address:

P.O. Box 2508
Attn: VSC Coordinator
Room 4106
A request shipped by Express Mail or a delivery service should be sent to:

550 Main Street
Attn: VSC Coordinator
Room 4106
(2) The request for approval must include the following:
(a) A copy of the specimen plan and any related specimen trust instrument;
2001–1 I.R.B. 211 January 2, 2001

(b) A cover letter requesting approval that includes the certification described in sec-
tion 9.05 above and indicates the type of plan for which approval is being requested;
(c) The required user fee submitted with Form 8717, User Fee for Employee Plan
Determination Letter Request; and
(d) An index/table of contents listing the location of all variable sections.
(3) For procedures regarding volume submitter lead specimen plans, see section 17.02
of Rev. Proc. 2000-20.
Requests for changes .08 The Service may, at its discretion, require any additional information it considers
necessary to the issuance of a favorable advisory letter. If a letter requesting changes to
the specimen plan is sent to the volume submitter practitioner or authorized representative,
the changes must be received no later than 30 days from the date of the letter. If the
changes are not received within 30 days, the advisory letter application may be considered
withdrawn. An extension of the 30-day time limit will only be granted for reasonable
cause.
Determination letter for .09 With respect to determination letters for volume submitter plans:
adoption of volume
submitter plan (1) A request for a determination letter for an employer’s adoption of an approved vol-
ume submitter plan must be sent to the address provided in section 6.17.
(2) The request for a determination letter, including a request regarding a single-
employer collectively bargained plan that benefits only collectively bargained employees
described in § 1.410(b)-6(d)(2) and that automatically satisfies the requirements of §
1.410(b)-2(b)(7), must include the following:
(a) Form 5307, Application for Determination for Adopters of Master or Prototype,
Regional Prototype, or Volume Submitter Plan;
(b) Schedule Q, (Form 5300) Nondiscrimination Requirements;
(c) Written authorization allowing the volume submitter practitioner to act as a rep-
resentative of the employer with respect to the request for a determination letter;
(d) A copy of the advisory letter for the practitioner’s volume submitter specimen
plan;
(e) A copy of the plan and trust instrument and a written representation made by the
volume submitter practitioner which:
(i) states whether the plan and trust instrument are word-for-word identical to the
approved specimen plan;
(ii) if the plan and trust are not word-for-word identical to the approved specimen
plan, explains how the plan and trust instrument differ from the approved specimen
plan, describing the location, nature and effect of each deviation from the language
of the approved specimen plan; and
(iii) if the latest advisory letter for the approved specimen plan does not consider
all the changes made by GUST and the determination letter application is for a com-
plete GUST letter, states that the plan satisfies all requirements of GUST, including
those first effective in plan years beginning after December 31, 1998, and identifies
those deviations from the language of the approved specimen plan that are intended
to satisfy specific GUST requirements;
January 2, 2001 212 2001–1 I.R.B.

(f) A copy of the plan’s latest favorable determination letter, if applicable; and
(g) Any other information or material that may be required by the Service.
(3) Deviations from the language of the approved specimen plan will be evaluated
based on the extent and complexities of the changes. If the changes are determined not to
be compatible with the volume submitter program, the Service may require the applicant
to file Form 5300 and pay the higher user fee.
(4) An employer will not be treated as having adopted a volume submitter plan if the
employer has signed or otherwise adopted the plan prior to the date on the volume sub-
mitter specimen plan’s advisory letter. In this case, the determination letter application for
the employer’s plan may not be filed on Form 5307 and will not be eligible for a reduced
user fee. A determination letter application for a volume submitter plan must be based on
the approved volume submitter specimen plan with any applicable modifications.
SECTION 10. MULTIPLE

EMPLOYER PLANS
Scope .01 This section contains procedures for applications filed with respect to plans
described in § 413(c).
Form 5300 and Schedule Q .02 An application filed with respect to a multiple employer plan must include a com-
pleted Form 5300 filed on behalf of one employer and a separate Form 5300 completed
through line 8 for each other employer maintaining the plan. One Schedule Q, (Form
5300) Nondiscrimination Requirements, should be filed for the plan. In accordance with
the instructions for Schedule Q, separate coverage and other information must be submit-
ted for each employer.
Multiple employer M&P plans .03 Certain multiple employer plans have in the past received Service approval as M&P
plans. In the case of such a plan that will continue to use an adoption agreement format,
the application must also include a completed adoption agreement for each employer
maintaining the plan. Regardless of whether an adoption agreement format continues to
be used for such a plan, the rules of § 1.414(l)-1 will apply in determining whether the plan
is a single plan for which only one determination letter will be issued and which requires
only one user fee.
Where to file .04 The complete application, including all Forms 5300 (and, if applicable, adoption
agreements) for employers maintaining the plan as of the date of the application, must be
filed as one package submission with EP Determinations. The application is to be sent to
the address in section 6.17.
Preliminary approval for .05 Multiple employer plan applicants who previously received Service approval for a
certain multiple employer plan as an M&P plan and who will continue to use an adoption agreement format are
M&P plans encouraged to request preliminary approval of the provisions of the plan, including the
permitted adoption agreement elections, prior to making the submission described above.
Preliminary approval may be requested by submitting a copy of the plan and trust instru-
ment, including a blank adoption agreement, and a copy of the latest opinion letter to the
volume submitter coordinator for EP Determinations. The request should not include an
application form or user fee. The Service will notify the applicant in writing if prelimi-
nary approval is granted, and the complete application may then be filed. Adopting
employers will not be entitled to rely on the preliminary approval as to the qualified sta-
tus of the plan.
Determination letter sent .06 The Service will mail a copy of the determination letter issued with respect to the
to each employer plan to each employer maintaining the plan.
2001–1 I.R.B. 213 January 2, 2001

Addition of employers .07 Employers may continue to rely on a favorable determination letter after another
employer commences participation in the plan provided an application for a determination
letter that takes into account the addition of such other employer is submitted by the last
day of the plan year beginning after such other employer commences participation in the
plan. The application should include a completed Form 5300 for the plan in the name of
the controlling member on the Form 5300 filed pursuant to section 10.02 above, and a sup-
plemental Form 5300 (and, if applicable, adoption agreement) for each new employer.
Coverage and other demographic information that may be required with the application
should be provided only with respect to the new employers. The Service will send copies
of the determination letter only to the applicant and the new employers.
SECTION 11. MINOR

AMENDMENT OF
PREVIOUSLY APPROVED
PLAN
Scope .01 This section contains procedures for requesting determination letters on the effect
of a minor plan amendment.
Form 6406 .02 Form 6406, Short Form Application for Determination for Minor Amendment of
Employee Benefit Plan, may be filed to request a determination letter on a minor plan
amendment. This form may be used for minor amendments of individually-designed plans
(including volume submitter plans, multiemployer plans and multiple employer plans) or
permitted changes to adoption agreement elections in master or prototype plans, provided
the changes constitute minor amendments. The Service may also designate other specific
amendments which may be submitted using Form 6406.
Additional Information .03 All applications must be accompanied by a copy of the new amendments, a state-
ment as to how the amendments affect or change the plan or any other plan maintained by
the employer, and a copy of the latest determination letter. In the case of a master or pro-
totype or volume submitter plan, a copy of the opinion or advisory letter should also be
included. A copy of the plan or trust instrument should not be filed with the Form 6406.
Minor amendment procedures .04 Since determination letters issued on minor amendments express an opinion only as
may not be used for complex to whether the amendments, in and of themselves, affect the qualification of employee
amendments or GUST letter plans under § 401 or 403(a), the minor amendment procedures cannot be used for complex
amendments that may affect other portions of the plan so as to cause plan disqualification.
Thus, the minor amendment procedures may not be used for an amendment to add a
§ 401(k) or an ESOP provision to a plan, or to restate a plan. The minor amendment pro-
cedures also may not be used to obtain a determination letter on plan amendments involv-
ing plan mergers or consolidations, transfers of assets or liabilities, or plan terminations
(including partial terminations). In addition, the minor amendment procedures may not be
used for an amendment that involves a significant change to plan benefits or coverage.
Except as provided in section 3.05 of Rev. Proc. 2000-27, the minor amendment proce-
dures may not be used to obtain a GUST determination letter.
EP Determinations has .05 EP Determinations has discretion to determine whether a plan amendment may be
discretion to determine submitted as a minor plan amendment and may request additional information, including
whether use of minor the filing of a Form 5300 series application if it determines that the application and the
amendment procedures attachments filed under the minor amendment procedures do not contain sufficient infor-
is appropriate mation, or that the Form 6406 is inappropriate.
SECTION 12. TERMINATION

OR DISCONTINUANCE OF
CONTRIBUTIONS; NOTICE
OF MERGERS,
CONSOLIDATIONS, ETC.
January 2, 2001 214 2001–1 I.R.B.

Scope .01 This section contains procedures for requesting determination letters involving plan
termination or discontinuance of contributions. This section also contains procedures
regarding required notice of merger, consolidation, or transfer of assets or liabilities.
Forms .02 Required Forms
(1) Form 5310, Application for Determination for Terminating Plan, is filed by plans
other than multiemployer plans covered by the insurance program of the Pension Benefit
Guaranty Corporation (PBGC).
(2) Form 5303, Application for Determination for Collectively Bargained Plan, is filed
in the case of a multiemployer plan covered by PBGC insurance.
(3) Schedule Q, (Form 5300) Nondiscrimination Requirements, is required to be filed

as an attachment to Form 5310 or Form 5303.
(4) Form 6088, Distributable Benefits from Employee Pension Benefit Plans, is also
required of a sponsor or plan administrator of a defined benefit plan or an underfunded
defined contribution plan who files only an application for a determination letter regard-
ing plan termination. For collectively bargained plans, a Form 6088 is required only if the
plan benefits employees who are not collectively bargained employees within the mean-
ing of § 1.410(b)-6(d). A separate Form 6088 is required for each employer employing
such employees.
(5) Form 5310-A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan
Assets or Liabilities - Notice of Qualified Separate Lines of Business, if required, gener-
ally must be filed not later than 30 days before merger, consolidation or transfer of assets
and liabilities. The filing of Form 5310-A will not result in the issuance of a determina-
tion letter.
Supplemental information .03 The application for a determination letter involving plan termination must also
include any supplemental information or schedules required by the forms or form instruc-
tions. For example, the application must include copies of all records of actions taken to
terminate the plan (such as a board of director’s resolution) and a schedule providing cer-
tain information regarding employees who separated from vesting service with less than
100% vesting.
Required demonstration of .04 An applicant requesting a determination letter upon termination may not decline to
nondiscrimination requirements elect that the plan be reviewed for the average benefit test (if applicable) or the nondis-
crimination in amount requirement, as otherwise permitted under sections 5.03 and 5.04,
unless the following conditions are satisfied:
(1) With respect to the average benefit test, the plan must have received a favorable
determination letter that stated that the plan satisfied the requirements of the test;
(2) With respect to the nondiscrimination in amount requirement, the plan must have
received a favorable determination letter that stated that the plan satisfied the requirements
of either a nondesign-based safe harbor or the general test for nondiscrimination in
amount;
(3) The favorable determination letter was issued during the immediately preceding
three plan years; and
(4) There has been no material change in the facts (including benefits provided under the
plan and employee demographics) or law upon which the determination was based.
Compliance with Title .05 In the case of plans subject to Title IV of ERISA, a favorable determination letter
IV of ERISA issued in connection with a plan’s termination is conditioned on approval that the termi-
2001–1 I.R.B. 215 January 2, 2001

nation is a valid termination under Title IV of ERISA. Notification by PBGC that a plan
may not be terminated will be treated as a material change of fact.
Termination prior to time .06 A plan that terminates after the effective date of a change in law, but prior to the date
for amending for change in law that amendments are otherwise required, must be amended to comply with the applicable
provisions of law from the date on which such provisions become effective with respect to
the plan. Because such a terminated plan would no longer be in existence by the required
amendment date and therefore could not be amended on that date, such plan must be
amended in connection with the plan termination to comply with those provisions of law
that become effective with respect to the plan on or before the date of plan termination.
(Such amendments include any amendments made after the date of plan termination that
were required in order to obtain a favorable determination letter.) In addition, annuity con-
tracts distributed from such terminated plans also must meet all the applicable provisions
of any change in law.
SECTION 13. GROUP TRUSTS
Scope .01 This section provides special procedures for requesting a determination letter on the
qualified status of a group trust under Rev. Rul. 81-100.
Required information .02 A request for a determination letter on the status of a group trust as described in Rev.
Rul. 81-100 is made by submitting a written request demonstrating how the group trust sat-
isfies the five criteria listed in Rev. Rul. 81-100, together with the trust instrument and
related documents.
SECTION 14. AFFILIATED

SERVICE GROUPS;
LEASED EMPLOYEES
Scope .01 This section provides procedures for determination letter requests on affiliated ser-
vice group status under § 414(m), and the effect of leased employees on a plan’s qualified
status.
Types of requests under .02 In accordance with section 7.01, an employer that is subject to § 414(m) or (n) may
§ 414(m) and § 414(n) request a determination letter under the following circumstances: (1) with respect to the
initial qualification of its plan, (2) on a plan amendment, and (3) in certain circumstances,
even though the plan has not been amended (for example, where there has been a change
in membership in the affiliated service group or where the employer did not previously
have reliance).
Employer must request the .03 Generally, a determination letter will cover § 414(m) or § 414(n) only if the employ-
determination under er requests such determination, and submits with the determination letter application the
§ 414(m) or § 414(n) information specified in section 14.09 or section 14.10 below.
Forms .04 Form 5300 (with Schedule Q) is submitted for a request on affiliated service group
status or leased employee status. Form 5307 cannot be used for this purpose.
Employer is responsible for .05 An employer is responsible for determining at any particular time whether it is a
determining status under member of an affiliated service group and, if so, whether its plan(s) continues to meet the
§ 414(m) and § 414(n) requirements of § 401(a) after the effective date of § 414(m), including § 414(m)(5). An
employer or plan administrator is also responsible for taking action relative to the employ-
er’s qualified plan if that employer becomes, or ceases to be, a member of an affiliated ser-
vice group. An employer that is the recipient of services of leased employees within the
meaning of § 414(n) is also responsible for determining at any particular time whether a
leased employee is deemed to be an employee of the recipient for qualified plan purposes.
Omission of material fact .06 Failure to properly indicate that there is or may be an affiliated service group and
to provide the information specified in section 14.09 of this revenue procedure, or failure
January 2, 2001 216 2001–1 I.R.B.

to properly indicate that an employer is utilizing the services of leased employees and to
provide the information specified in section 14.10, is an omission of a material fact. The
failure of the employer to follow the procedures in this section will result in the employer
being unable to rely on any favorable determination letter concerning the effect of
§ 414(m) or § 414(n) on the qualified status of the plan.
Service will indicate whether .07 If the Service considers whether the plan of an employer satisfies the requirements
§ 414(m) or § 414(n) of § 414(m) or § 414(n), the determination letter issued to the employer will state that
was considered questions arising under § 414(m) or § 414(n) have been considered, and that the plan sat-
isfies qualification requirements relating to that section. Absent such a statement pertain-
ing to § 414(m) or § 414(n), a determination letter does not apply to any qualification issue
arising by reason of such provisions.
M&P plans .08 An employer that has adopted an M&P plan (including a standardized form plan)
and wants a determination as to the effect of § 414(m) or § 414(n) on the qualified status
of its plan must attach the information required by section 14.09 of this revenue procedure
to Form 5300 and submit the information, Form 5300, Schedule Q, and any other materi-
als necessary to make a determination.
Required information for .09 A determination letter issued with respect to a plan’s qualification under § 401(a),
§ 414(m) determination 403(a), or 4975(e)(7) will be a determination as to the effect of § 414(m) upon the plan’s
qualified status only if the application includes:
(1) A description of the nature of the business of the employer, specifically whether it
is a service organization or an organization whose principal business is the performance of
management functions for another organization, including the reasons therefor;
(2) The identification of other members (or possible members) of the affiliated service
group;
(3) A description of the business of each member (or possible member) of the affiliat-
ed service group, describing the type of organization (corporation, partnership, etc.) and
indicating whether the member is a service organization or an organization whose princi-
pal business is the performance of management functions for the other group member(s);
(4) The ownership interests between the employer and the members (or possible mem-
bers) of the affiliated service group (including ownership interests as described in
§ 414(m)(2)(B)(ii) or § 414(m)(6)(B));
(5) A description of services performed for the employer by the members (or possible
members) of the affiliated service group, or vice versa (including the percentage of each
member’s (or possible member’s) gross receipts and service receipts provided by such ser-
vices, if available, and data as to whether such services are a significant portion of the mem-
ber’s business) and whether, as of December 13, 1980, it was not unusual for the services
to be performed by employees of organizations in that service field in the United States;
(6) A description of how the employer and the members (or possible members) of the
affiliated service group associate in performing services for other parties;
(7) In the case of a management organization under § 414(m)(5):
(a) A description of the management functions, if any, performed by the employer

for the member(s) (or possible member(s)) of the affiliated service group, or received
by the employer from any other members (or possible members) of the group (includ-
ing data explaining whether the management functions are performed on a regular
and continuous basis) and whether or not it is unusual for such management functions
to be performed by employees of organizations in the employer’s business field in the
United States;
2001–1 I.R.B. 217 January 2, 2001

(b) If management functions are performed by the employer for the member (or
possible members) of the affiliated service group, a description of what part of the
employer’s business constitutes the performance of management functions for the
member (or possible member) of the group (including the percentage of gross receipts
derived from management activities as compared to the gross receipts from other
activities);
(8) A brief description of any other plan(s) maintained by the members (or possible
members) of the affiliated service group, if such other plan(s) is designated as a unit for
qualification purposes with the plan for which a determination letter has been requested;
(9) A description of how the plan(s) satisfies the coverage requirements of § 410(b) if
the members (or possible members) of the affiliated service group are considered part of
an affiliated service group with the employer;
(10) A copy of any ruling issued by the national office on whether the employer is an
affiliated service group; a copy of any prior determination letter that considered the effect
of § 414(m) on the qualified status of the employer’s plan; and, if known, a copy of any
such ruling or determination letter issued to any other member (or possible member) of the
same affiliated service group, accompanied by a statement as to whether the facts upon
which the ruling or determination letter was based have changed.
Required information for .10 Unless the plan provides that all leased employees within the meaning of
§ 414(n) determination § 414(n)(2) are treated as common law employees for all purposes under the plan, a deter-
mination letter issued with respect to the plan’s qualification under § 401(a), 403(a), or
4975(e)(7) will be a determination as to the effect of § 414(n) upon the plan’s qualified sta-
tus only if the application includes:
(1) A description of the nature of the business of the recipient organization;
(2) A copy of the relevant leasing agreement(s);
(3) A description of the function of all leased employees within the trade or business of
the recipient organization (including data as to whether all leased employees are perform-
ing services on a substantially full-time basis);
(4) A description of facts and circumstances relevant to a determination of whether such

leased employees’ services are performed under primary direction or control by the recip-
ient organization (including whether the leased employees are required to comply with
instructions of the recipient about when, where, and how to perform the services, whether
the services must be performed by particular persons, whether the leased employees are
subject to the supervision of the recipient, and whether the leased employees must perform
services in the order or sequence set by the recipient); and
(5) If the recipient organization is relying on any qualified plan(s) maintained by the
employee leasing organization for purposes of qualification of the recipient organization’s
plan, a description of such plan(s) (including a description of the contributions or benefits
provided for all leased employees which are attributable to services performed for the
recipient organization, plan eligibility, and vesting).
SECTION 15. WAIVER OF

MINIMUM FUNDING
Scope .01 This section provides procedures with respect to defined contribution plans for
requesting a waiver of the minimum funding standard account and requesting a determi-
nation letter on any plan amendment required for the waiver.
January 2, 2001 218 2001–1 I.R.B.

Applicability of Rev. Proc. 94-41 .02 The procedures of Rev. Proc. 94-41, 1994-1 C.B. 711, apply to the request for a
waiver of the minimum funding requirement.
Waiver and determination .03 Under this section, both the request for a waiver ruling and the request for a deter-
letter request submitted mination letter on the effect of any amendment necessary to satisfy section 3 of Rev. Rul.
to EP Technical 78-223, 1978-1 C.B. 125, must be submitted by the taxpayer to EP Technical where it will
be treated as a mandatory request for technical advice. The request that is submitted to EP
Technical must include the following:
(1) All the procedural requirements described in section 2 of Rev. Proc. 94-41 must be
satisfied;
(2) The submission must include a completed Form 5300 (with Schedule Q) and all nec-
essary documents, plan amendments, and information required by the Form 5300 and by
this revenue procedure for approval of the plan amendments; and
(3) The request and the applicable user fee (required by Rev. Proc. 2001-8) for both the
waiver request and the determination letter request should be sent to:

Tax Exempt and Government Entities Division
Attention: T:EP:RA
P.O. Box 27063
McPherson Station
Additional information sent after the initial request should be sent to:
Manager, Actuarial
T:EP:RA:T:A
1111 Constitution Ave., N.W.
Handling of the request .04 The waiver request will be handled by EP Technical as follows:
(1) The waiver request and supporting documents will be forwarded to Actuarial,
T:EP:RA:T:A, which will treat the request as a technical advice on the qualification issue
with respect to the plan provisions necessary to satisfy section 3 of Rev. Rul. 78-223.
(2) EP Determinations will be notified of the request. In order not to delay the pro-
cessing of the request, all materials relating to the determination letter request will be for-
warded by EP Technical to EP Determinations for consideration while the technical advice
request is completed.
(3) EP Technical will consider both the application for a funding waiver and the pro-
posed plan amendment. If a waiver is to be granted and if EP Technical believes that qual-
ification of the plan is not adversely affected by the plan amendment, the mandatory tech-
nical advice memorandum will be issued to EP Determinations. EP Determinations must
decide within 10 working days from the date of the technical advice memorandum either
to furnish the applicant with the technical advice memorandum and with a favorable
advance determination letter, or to ask for reconsideration of the technical advice memo-
randum. This request must be in writing. An initial written notice of an intent to make
this request may be submitted within 10 working days of the date of the technical advice
memorandum and followed by a written request within 30 working days from the date of
such written notice. If EP Determinations does not ask for reconsideration of the techni-
cal advice memorandum within 10 working days, Actuarial will issue the waiver ruling.
This ruling will not contain the caveat described in section 3.02 of Rev. Proc. 94-41.
2001–1 I.R.B. 219 January 2, 2001

Interested party notice .05 The notice and comment requirements for interested parties provided in sections 17
and comment and 18 of this revenue procedure must be satisfied. Comments are to be forwarded to EP
Determinations. With respect to the waiver request, the notice requirements applicable to
waiver requests found in Rev. Proc. 94-41 must be satisfied.
When waiver request .06 In the case of a plan other than a multiemployer plan, no waiver may be granted
should be submitted under § 412(d) with respect to any plan for any plan year unless an application therefor is
submitted to the Service not later than the 15th day of the third month beginning after the
close of such plan year. The Service may not extend this deadline. A request for a waiv-
er with respect to a multiemployer plan generally must be submitted no later than the close
of the plan year following the plan year for which the waiver is requested.
In seeking a waiver with respect to a plan year which has not yet ended, the applicant
may have difficulty in furnishing sufficient current evidence in support of the request. For
this reason it is generally advisable that such advance request be submitted no earlier than
180 days prior to the end of the plan year for which the waiver is requested.
SECTION 16. SECTION 401(h)

AND § 420 DETERMINATION
LETTERS
Scope .01 This section provides procedures for requesting determination letters (i) with
respect to whether the requirements of § 401(h) are satisfied in a plan with retiree medical
benefit features and (ii) on plan language that permits, pursuant to § 420, the transfer of
assets in a defined benefit plan to a health benefit account described in § 401(h).
Required information for .02 EP Determinations will issue a determination letter that considers whether the
§ 401(h) determination requirements of § 401(h) are satisfied in a plan with retiree medical benefit features only
if the plan sponsor’s application includes, in addition to the application forms and any
other material required by this revenue procedure, a cover letter that requests considera-
tion of § 401(h). The cover letter must specifically state that consideration is being
requested with regard to § 401(h) in addition to other matters under § 401(a) and must
specifically state the location of plan provisions that satisfy the requirements of § 401(h).
Part I of the checklist in the Appendix of this revenue procedure may be used to identify
the location of relevant plan provisions. Form 6406 may not be used to request a deter-
mination letter that considers § 401(h).
Required information for .03 EP Determinations will consider the qualified status of plan language designed to
§ 420 determination comply with § 420 only if the plan sponsor requests such consideration in a cover letter.
The cover letter must specifically state (i) whether consideration is being requested only
with regard to § 420, or (ii) whether consideration is being requested with regard to § 420
in addition to other matters under § 401(a). (If consideration of other matters under
§ 401(a) is being requested, the application forms and other material required by this rev-
enue procedure must also be submitted. Form 6406 may not be used for this purpose.)
The cover letter must specifically state the location of plan provisions that satisfy each of
the following requirements. Parts I and II of the checklist in the Appendix of this revenue
procedure may be used to identify the location of relevant plan provisions.
(1) The plan must include a health benefits account as described in § 401(h).
(2) The plan must provide that transfers shall be limited to transfers of “excess assets”
as defined in § 420(e)(2).
(3) The plan must provide that only one transfer may be made in a taxable year.
However, for purposes of determining whether the rule in the preceding sentence is met, a
plan may provide that a transfer will not be taken into account if it is a transfer that:
January 2, 2001 220 2001–1 I.R.B.

(a) Is made after the close of the taxable year preceding the employer’s first taxable
year beginning after December 31, 1990, and before the earlier of (i) the due date
(including extensions) for the filing of the return of tax for such preceding year, or (ii)
the date such return is filed; and
(b) Does not exceed the expenditures of the employer for qualified current retiree
health liabilities for such preceding taxable year.
(4) The plan must provide that the amount transferred shall not exceed the amount
which is reasonably estimated to be the amount the employer will pay out (whether direct-
ly or through reimbursement) of the health benefit account during the taxable year of the
transfer for “qualified current retiree health liabilities”, as defined in § 420(e)(1).
(5) The plan must provide that no transfer will be made after December 31, 2005.
(6) The plan must provide that any assets transferred, and any income allocable to such
assets, shall be used only to pay qualified current retiree health liabilities for the taxable
year of transfer.
(7) The plan must provide that any amounts transferred to a health benefits account (and
income attributable to such amounts) which are not used to pay qualified current retiree
health liabilities shall be transferred back to the defined benefit portion of the plan.
(8) The plan must provide that the amounts paid out of a health benefits account will be
treated as paid first out of transferred assets and income attributable to those assets.
(9) The plan must provide that the accrued pension benefits for participants and bene-
ficiaries must become nonforfeitable as if the plan had terminated immediately prior to the
transfer (or in the case of a participant who separated during the 1-year period ending on
the date of transfer immediately before such separation). In the case of a transfer described
in § 420(b)(4) that relates to a prior year, the plan must provide that the accrued benefit of
a participant who separated from service during the taxable year to which such transfer
relates will be recomputed and treated as nonforfeitable immediately before such separa-
tion.
(10) The plan must provide that a transfer will be permitted only if each group health
plan or arrangement under which health benefits are provided contains provisions satisfy-
ing § 420(c)(3). The plan must define “applicable employer cost”, “cost maintenance peri-
od”, and “benefit maintenance period”,as applicable, consistent with § 420(c)(3), as
amended by the Tax Relief Extension Act of 1999, Pub. L. 106-170 (TREA ‘99). If applic-
able, the provisions of the plan must also reflect the transition rule in § 535(c)(2) of TREA
‘99. The plan may provide that § 420(c)(3) is satisfied separately with respect to individ-
uals eligible for benefits under Title XVIII of the Social Security Act at any time during
the taxable year and with respect to individuals not so eligible.
(11) The plan must provide that transferred assets cannot be used for key employees (as
defined in § 416(i)(1)).
PART II. INTERESTED PARTY NOTICE AND COMMENT
SECTION 17. WHAT RIGHTS

TO NOTICE AND COMMENT
DO INTERESTED PARTIES
HAVE?
Rights of interested parties .01 Persons who qualify as interested parties under § 1.7476-1(b), have the following
rights:
2001–1 I.R.B. 221 January 2, 2001

(1) To receive notice, in accordance with section 18 below, that an application for an
advance determination will be filed regarding the qualification of plans described in
§§ 401, 403(a), 409 and/or 4975(e)(7);
(2) To submit written comments with respect to the qualification of such plans to the Service;
(3) To request the Department of Labor to submit a comment to the Service on behalf
of the interested parties; and
(4) To submit written comments to the Service on matters with respect to which the
Department of Labor was requested to comment but declined.
Comments by interested parties .02 Comments submitted by interested parties must be received by EP Determinations
by the 45th day after the day on which the application for determination is received by EP
Determinations. (However, see sections 17.03 and 17.04 for filing deadlines where the
Department of Labor has been requested to comment). Such comments must be in writ-
ing, signed by the interested parties or by an authorized representative of such parties (as
provided in section 9.02(11) of Rev. Proc. 2001-4), addressed to EP Determinations at the
address in section 6.17, and contain the following information:
(1) The names of the interested parties making the comments;
(2) The name and taxpayer identification number of the applicant for a determination;
(3) The name of the plan, the plan identification number, and the name of the plan
administrator;
(4) Whether the parties submitting the comment are:
(a) Employees eligible to participate under the plan,
(b) Employees with accrued benefits under the plan, or former employees with
vested benefits under the plan,
(c) Beneficiaries of deceased former employees who are eligible to receive or are
currently receiving benefits under the plan,
(d) Employees not eligible to participate under the plan.
(5) The specific matters raised by the interested parties on the question of whether the
plan meets the requirements for qualification involving §§ 401 and 403(a), and how such
matters relate to the interests of the parties making the comment; and
(6) The address of the interested party submitting the comment (or if a comment is sub-
mitted jointly by more than one party, the name and address of a designated representa-
tive) to which all correspondence, including a notice of the Service’s final determination
with respect to qualification, should be sent. (The address designated for notice by the
Service will also be used by the Department of Labor in communicating with the parties
submitting a request for comment.) The designated representative may be one of the inter-
ested parties submitting the comment or an authorized representative. If two or more inter-
ested parties submit a single comment and one person is not designated in the comment as
the representative for receipt of correspondence, a notice of determination mailed to any
interested party who submitted the comment shall be notice to all the interested parties
who submitted the comment for purposes of § 7476(b)(5) of the Code.
Requests for DOL to submit .03 A request to the Department of Labor to submit to EP Determinations a comment
comments pursuant to § 3001(b)(2) of ERISA must be made in accordance with the following pro-
cedures.
January 2, 2001 222 2001–1 I.R.B.

(1) The request must be received by the Department of Labor by the 25th day after the
day the application for determination is received by EP Determinations. However, if the
parties requesting the Department to submit a comment wish to preserve the right to com-
ment to EP Determinations in the event the Department declines to comment, the request
must be received by the Department by the 15th day after the day the application for deter-
mination is received by EP Determinations.
(2) The request to the Department of Labor to submit a comment to EP Determinations

must:
(a) Be in writing;
(b) Be signed as provided in section 17.02 above;
(c) Contain the names of the interested parties requesting the Department to comment
and the address of the interested party or designated representative to whom all corre-
spondence with respect to the request should be sent. See also section 17.02(6) above;
(d) Contain the information prescribed in section 17.02(2), (3), (4), (5) and (6)
above;
(e) Indicate that the application was or will be submitted to EP Determinations at

the address in section 6.17;
(f) Contain a statement of the specific matters upon which the Department’s com-
ment is sought, as well as how such matters relate to the interested parties making the
request; and
(g) Be addressed as follows:
Deputy Assistant Secretary

Pension and Welfare Benefits
Administration
U.S. Department of Labor,
200 Constitution Avenue, N.W.,
Attention: 3001 Comment Request
Right to comment if DOL .04 If a request described in 17.03 is made and the Department of Labor notifies the
declines to comment interested parties making the request that it declines to comment on a matter concerning
qualification of the plan which was raised in the request, the parties submitting the request
may still submit a comment to EP Determinations on such matter. The comment must be
received by the later of the 45th day after the day the application for determination is
received by EP Determinations or the 15th day after the day on which notification is given
by the Department that it declines to submit a comment on such matter. (See section 17.07
for the date of notification.) In no event may the comment be received later than the 60th
day after the day the application for determination was received. Such a comment must
comply with the requirements of section 17.02 and include a statement that the comment
is being submitted on matters raised in a request to the Department upon which the
Department declined to comment.
Confidentiality of comments .05 For rules regarding the confidentiality of contents of written comments submitted
by interested parties to the Service pursuant to section 17.02 or 17.04, see § 601.201(o)(5)
of the Statement of Procedural Rules.
Availability of comments .06 For rules regarding the availability to the applicant of copies of all comments on the
application submitted pursuant to section 17.01(1), (2), (3) and (4) of this revenue proce-
dure, see § 601.201(o)(5) of the Statement of Procedural Rules.
2001–1 I.R.B. 223 January 2, 2001

When comments are .07 An application for an advance determination, a comment to EP Determinations, or
deemed made a request to the Department of Labor shall be deemed made when it is received by EP
Determinations, or the Department. Notification by the Department that it declines to
comment shall be deemed given when it is received by the interested party or designated
representative. The notice described in section 18.01 below shall be deemed given when
it is given in person, posted as prescribed in the regulations under § 7476, or received
through the mail or a private delivery service that has been designated under § 7502(f). In
the case of an application, comment, request, notification, or notice that is sent by mail or
designated private delivery service, the date as of which it shall be deemed received will
be determined under § 7502. However, if such an application, comment, request, notifi-
cation, or notice is not received within a reasonable period from the date determined under
§ 7502, the immediately preceding sentence shall not apply.
SECTION 18. WHAT

ARE THE GENERAL
RULES FOR NOTICE TO
INTERESTED PARTIES?
Notice to interested parties .01 Notice that an application for an advance determination regarding the qualification
of a plan described in §§ 401, 403(a), 409 and 4975(e)(7) is to be made must be given to
all interested parties in the manner set forth in § 1.7476-2(c) and in accordance with the
requirements of this section.
Time when notice .02 When the notice referred to in section 18.01 is given by posting or in person, such
must be given notice must be given not less than 7 days nor more than 21 days prior to the day the appli-
cation for a determination is made. When the notice is given by mailing or designated pri-
vate delivery service, it should be given not less than 10 days nor more than 24 days prior
to the day the application for a determination is made. If, however, an application is
returned to the applicant for failure to adequately satisfy the notification requirements with
respect to a particular group or class of interested parties, the applicant need not cause
notice to be given to those groups or classes of interested parties with respect to which the
notice requirement was already satisfied merely because, as a result of the resubmission of
the application, the time limitations of this subsection would not be met.
Content of notice .03 The notice referred to in section 18.01 shall be in writing and shall contain the fol-
lowing information:
(1) A brief description identifying the class or classes of interested parties to whom the
notice is addressed (e.g., all present employees of the employer, all present employees eli-
gible to participate);
(2) The name of the plan, the plan identification number, and the name of the plan
administrator;
(3) The name and taxpayer identification number of the applicant for a determination;
(4) That an application for a determination as to the qualified status of the plan is to be
made to the Service at the address in section 6.17, and stating whether the application
relates to an initial qualification, a plan amendment, termination, or a partial termination;
(5) A description of the class of employees eligible to participate under the plan;
(6) Whether or not the Service has issued a previous determination as to the qualified
status of the plan;
(7) A statement that any person to whom the notice is addressed is entitled to submit,
or request the Department of Labor to submit, to EP Determinations, a comment on the
question of whether the plan meets the requirements of § 401 or 403(a); that two or more
January 2, 2001 224 2001–1 I.R.B.

such persons may join in a single comment or request; and that if such persons request the
Department of Labor to submit a comment and the Department of Labor declines to do so
with respect to one or more matters raised in the request, the persons may still submit a
comment to EP Determinations with respect to the matters on which the Department
declines to comment. The Pension Benefit Guaranty Corporation (PBGC) may also sub-
mit comments. In every instance where there is either a final adverse termination or a dis-
tress termination, the Service formally notifies the PBGC for comments;
(8) The specific dates by which a comment to EP Determinations or a request to the

Department of Labor must be received in order to preserve the right of comment (see sec-
tion 17 above);
(9) The number of interested parties needed in order for the Department of Labor to
comment; and
(10) Except to the extent that the additional informational material required to be made
available by sections 18.05 through 18.09 are included in the notice, a description of a rea-
sonable procedure whereby such additional informational material will be available to
interested parties (see section 18.04). (Examples of notices setting forth the above infor-
mation, in a case in which the additional information required by sections 18.05 through
18.09 will be made available at places accessible to the interested parties, are set forth in
the Exhibit attached to this revenue procedure.)
Procedures for making .04 The procedure referred to in section 18.03(10), whereby the additional informa-
information available to tional material required by sections 18.05 through 18.09 will (to the extent not included in
interested parties the notice) be made available to interested parties, may consist of making such material
available for inspection and copying by interested parties at a place or places reasonably
accessible to such parties, or supplying such material in person or by mail, or by a combi-
nation of the foregoing, provided such procedure is immediately available to all interest-
ed parties, is designed to supply them with such additional informational material in time
for them to pursue their rights within the time period prescribed, and is available until the
earlier of: 1) the filing of a pleading commencing a declaratory judgment action under §
7476 with respect to the qualification of the plan; or 2) the 92nd day after the day the
notice of final determination is mailed to the applicant. Reasonable charges to interested
parties for copying and/or mailing such additional informational material are permissible.
Information to be available .05 Unless provided in the notice, or unless section 18.06 applies, there shall be made
to interested parties available to interested parties under a procedure described in section 18.04:
(1) An updated copy of the plan and the related trust agreement (if any); and
(2) The application for determination.
Special rules if there are .06 If there would be less than 26 participants in the plan, as described in the applica-
less than 26 participants tion (including, as participants, former employees with vested benefits under the plan, ben-
eficiaries of deceased former employees currently receiving benefits under the plan, and
employees who would be eligible to participate upon making mandatory employee contri-
butions, if any), then in lieu of making the materials described in section 18.05 available
to interested parties who are not participants (as described above), there may be made
available to such interested parties a document containing the following information:
(1) A description of the plan’s requirements respecting eligibility for participation and
benefits and the plan’s benefit formula;
(2) A description of the provisions providing for nonforfeitable benefits;
(3) A description of the circumstances which may result in ineligibility, or denial or loss
of benefits;
2001–1 I.R.B. 225 January 2, 2001

(4) A description of the source of financing of the plan and the identity of any organi-
zation through which benefits are provided;
(5) A description of any optional forms of benefits described in § 411(d)(6) which have
been reduced or eliminated by plan amendment; and
(6) Whether the applicant is claiming in the application that the plan meets the require-
ments of § 410(b)(1)(A), and, if not, the coverage schedule required by the application in
the case of plans not meeting the requirements of such section.
However, once an interested party or designated representative receives a notice of final

determination, the applicant must, upon request, make available to such interested party
(whether or not the plan has less than 26 participants) an updated copy of the plan and
related trust agreement (if any) and the application for determination.
Information described in .07 Information of the type described in § 6104(a)(1)(D) should not be included in the
§ 6104(a)(1)(D) should application, plan, or related trust agreement submitted to the Service. Accordingly, such
not be included information should not be included in any of the material required by section 18.05 or
18.06 to be available to interested parties.
Availability of additional .08 Unless provided in the notice, there shall be made available to interested parties
information to interested parties under a procedure described in section 18.04, any additional document dealing with the
application which is submitted by or for the applicant to the Service, or furnished by the
Service to the applicant; provided, however, if there would be less than 26 participants in
the plan as described in the application (including, as participants, former employees with
vested benefits under the plan, beneficiaries of deceased former employees currently
receiving benefits under the plan, and employees who would be eligible to participate upon
making mandatory employee contributions, if any), such additional documents need not be
made available to interested parties who are not participants (as described above) until
they, or their designated representative, receive a notice of final determination. The appli-
cant may also withhold from such inspection and copying information described in
§ 6104(a)(1)(C) and (D) which may be contained in such additional documents.
Availability of notice to .09 Unless provided in the notice, there shall be made available to all interested parties
interested parties under a procedure described in section 18.04 the material described in sections 17.02
through 17.07 above.
PART III. PROCESSING DETERMINATION LETTER REQUESTS
SECTION 19. HOW DOES THE

SERVICE HANDLE
DETERMINATION LETTER
REQUESTS?
Oral advice .01 Oral advice.
(1) The Service does not issue determination letters on oral requests. However, per-
sonnel in EP Determinations ordinarily will discuss with taxpayers or their representatives
inquiries regarding: substantive tax issues; whether the Service will issue a determination
letter on particular issues; and questions relating to procedural matters about submitting
determination letter requests. Any discussion of substantive issues will be at the discre-
tion of the Service on a time available basis, will not be binding on the Service, and can-
not be relied upon as a basis of obtaining retroactive relief under the provisions of
§ 7805(b). A taxpayer may seek oral technical assistance from a taxpayer service repre-
sentative when preparing a return or report, under established procedures. Oral advice is
advisory only, and the Service is not bound to recognize it in the examination of the tax-
payer’s return.
January 2, 2001 226 2001–1 I.R.B.

(2) The advice or assistance furnished, whether requested by personal appearance, tele-
phone, or correspondence will be limited to general procedures, or will direct the inquirer
to source material, such as pertinent Code provisions, regulations, revenue procedures, and
revenue rulings that may aid the inquirer in resolving the question or problem.
Conferences .02 EP Determinations may grant a conference upon written request from a taxpayer or
his representative, provided the request shows that a substantive plan, amendment, etc.,
has been developed for submission to the Service, but that special problems or issues are
involved, and EP Determinations concludes that a conference would be warranted in the
interest of facilitating review and determination when the plan, etc., is formally submitted.
See section 6.19 and 6.20 regarding the right to a status conference on applications pend-
ing for at least 270 days.
Determination letter based .03 Administrative Record

solely on administrative record
(1) In the case of a request for a determination letter, the determination of EP
Determinations or the appeals office on the qualification or non-qualification of the retire-
ment plan shall be based solely upon the facts contained in the administrative record. The
administrative record shall consist of the following:
(a) The request for determination, the retirement plan and any related trust instru-
ments, and any written modifications or amendments made by the applicant during
the proceedings within the Service;
(b) All other documents submitted to the Service by, or on behalf of, the applicant
with respect to the request for determination;
(c) All written correspondence between the Service and the applicant with respect
to the request for determination and any other documents issued to the applicant from
the Service;
(d) All written comments submitted to the Service pursuant to sections 17.01(2),
(3), and (4) above, and all correspondence relating to comments submitted between
the Service and persons (including PBGC and the Department of Labor) submitting
comments pursuant to sections 17.01(2), (3), and (4) above; and
(e) In any case in which the Service makes an investigation regarding the facts as
represented or alleged by the applicant in the request for determination or in com-
ments submitted pursuant to sections 17.01(2), (3), and (4) above, a copy of the offi-
cial report of such investigation.
(2) The administrative record shall be closed upon the earlier of the following events:
(a) The date of mailing of a notice of final determination by the Service with
respect to the application for determination; or
(b) The filing of a petition with the United States Tax Court seeking a declaratory
judgment with respect to the retirement plan.
(3) Any oral representation or modification of the facts as represented or alleged in the
application for determination or in a comment filed by an interested party, which is not
reduced to writing shall not become a part of the administrative record and shall not be
taken into account in the determination of the qualified status of the retirement plan by EP
Determinations or the appeals office.
Notice of final determination .04 In the case of final determination, the notice of final determination:
2001–1 I.R.B. 227 January 2, 2001

(1) Shall be the letter issued by EP Determinations or the appeals office which states
that the applicant’s plan satisfies the qualification requirements of the Code. The favor-
able determination letter will be sent by certified or registered mail where either an inter-
ested party, the Department of Labor, or the PBGC has commented on the application for
determination.
(2) Shall be the letter issued, by certified or registered mail, by EP Determinations or

the appeals office subsequent to a letter of proposed determination, stating that the appli-
cant’s plan fails to satisfy the qualification requirements of the Code.
Issuance of the notice of .05 EP Determinations or the appeals office will send the notice of final determination
final determination to the applicant, to the interested parties who have previously submitted comments on the
application to the Service (or to the persons designated by them to receive such notice), to
the Department of Labor in the case of a comment submitted by the Department, and to
PBGC if it has filed a comment.
SECTION 20. EXHAUSTION

OF ADMINISTRATIVE
REMEDIES
In general .01 For purposes of § 7476(b)(3), a petitioner shall be deemed to have exhausted the
administrative remedies available within the Service upon the completion of the steps
described in sections 20.02, 20.03, 20.04, or 20.05 subject, however, to sections 20.06 and
20.07. If applicants, interested parties, or the PBGC do not complete the applicable steps
described below, they will not have exhausted their respective available administrative
remedies as required by § 7476(b)(3) and will, thus, be precluded from seeking declarato-
ry judgment under § 7476 except to the extent that section 20.05 or 20.08 applies.
Steps for exhausting .02 In the case of an applicant, with respect to any matter relating to the qualification
administrative remedies of a plan, the steps referred to in section 20.01 are:
(1) Filing a completed application with EP Determinations pursuant to this revenue pro-
cedure;
(2) Complying with the requirements pertaining to notice to interested parties as set
forth in this revenue procedure and § 1.7476-2 of the regulations; and,
(3) Appealing to the Appeals Office pursuant to paragraph 601.201(o)(6) of the

Statement of Procedural Rules, in the event a notice of proposed adverse determination is
issued by EP Determinations.
Applicant’s request for .03 Consideration of relief under § 7805(b) will be included as one of the applicant’s
7805(b) relief steps in exhausting administrative remedies only if the applicant requests EP
Determinations to seek technical advice from EP Technical on the applicability of such
relief. The applicant’s request must be made in writing according to the procedures for
requesting technical advice (see section 19 of Rev. Proc. 2001-5).
Interested parties .04 In the case of an interested party or the PBGC, the steps referred to in section 20.01
are, with respect to any matter relating to the qualification of the plan, submitting to EP
Determinations a comment raising such matter in accordance with section 17.01(2) above,
or requesting the Department of Labor to submit to EP Determinations a comment with
respect to such matter in accordance with section 17.01(3) and, if the Department of Labor
declines to comment, submitting the comment in accordance with section 17.01(4) above,
so that it may be considered by the Service through the administrative process.
Deemed exhaustion of .05 An applicant, an interested party, or the PBGC shall in no event be deemed to have
administrative remedies exhausted administrative remedies prior to the earlier of:
January 2, 2001 228 2001–1 I.R.B.

(1) The completion of those steps applicable to each as set forth in sections 20.01,
20.02, 20.03 or 20.04, which constitute their administrative remedies; or,
(2) The expiration of the 270-day period described in § 7476(b)(3), which period shall
be extended in a case where there has not been a completion of all the steps referred to in
section 20.02 and the Service has proceeded with due diligence in processing the applica-
tion for determination.
Service must act on appeal .06 The step described in section 20.02(3) will not be considered completed until the
Service has had a reasonable time to act upon the appeal.
Service must act on .07 Where the applicant has requested EP Determinations to seek technical advice on
§ 7805(b) request the applicability of § 7805(b) relief, the applicant’s administrative remedies will not be
considered exhausted until EP Technical has had a reasonable time to act upon the request
for technical advice.
Effect of technical advice request .08 The step described in section 20.02(3) will not be available or necessary with
respect to any issue on which technical advice has been obtained from EP Technical.

WILL AN EMPLOYEE PLAN
DETERMINATION
LETTER HAVE?
Scope of reliance on .01 A determination letter issued pursuant to this revenue procedure contains only the
determination letter opinion of the Service as to the qualification of the particular plan involving the provisions
of §§ 401 and 403(a) and the status of a related trust, if any, under § 501(a). Such a deter-
mination letter is based on the facts and demonstrations presented to the Service in con-
nection with the application for the determination letter and may not be relied upon after
a change in material fact or the effective date of a change in law, except as provided. For
example, a determination letter issued pursuant to this revenue procedure may not be relied
upon after a significant change in plan coverage resulting from the operation of the plan.
The Service may determine, based on the application form, the extent of review of the plan
document. Failure to disclose a material fact or misrepresentation of a material fact may
adversely affect the reliance which would otherwise be obtained through the issuance by
the Service of a favorable determination letter. Similarly, failure to accurately provide any
of the information called for on any form required by this revenue procedure may result in
no reliance. Applicants are advised to retain copies of all demonstrations and supporting
data submitted with their applications. Failure to do so may limit the scope of reliance.
Effect of determination letter .02 Determination letters issued on minor amendments to plans and trusts under this
on minor plan amendment revenue procedure will merely express an opinion whether the amendment, in and of
itself, affects the existing status of the plan’s qualification and the exempt status of the
related trust. In no event should such a determination letter be construed as an opinion on
the qualification of the plan as a whole and the exempt status of the related trust as a
whole.
Sections 13 and 14 of .03 Except as otherwise provided in this section, determination letters referred to in sec-
Rev. Proc. 2001-4 applicable tions 21.01 and 21.02 are governed, generally, by the provisions of sections 13 and 14 of
Rev. Proc. 2001-4.
Effect of subsequent .04 The prior qualification of a plan as adopted by an employer will not be considered
publication of to be adversely affected by the publication of a revenue ruling, a revenue procedure, or an
revenue ruling, etc. administrative pronouncement within the meaning of § 1.6661-3(b)(2) of the regulations
where:
(1) The plan was the subject of a favorable determination letter and the request for that
letter contained no misstatement or omission of material facts;
2001–1 I.R.B. 229 January 2, 2001

(2) The facts subsequently developed are not materially different from the facts on
which the determination letter was based;
(3) There has been no change in the applicable law; and
(4) The employer that established the plan acted in good faith in reliance on the deter-
mination letter.
However, all such plans must be amended to comply with the published revenue ruling for
subsequent years. Unless specifically stated otherwise in the revenue ruling or in other
published guidance of general applicability, the conforming amendment to an individual-
ly-designed plan must be adopted before the end of the first plan year that begins after the
revenue ruling, revenue procedure, or administrative pronouncement is published in the
Internal Revenue Bulletin and must be effective, for all purposes, not later than the first
day of the first plan year beginning after the revenue ruling is published. For the rule as
to the conforming amendment to an M&P plan, see section 12 of Rev. Proc. 2000-20.
Determination letter does not .05 While a favorable determination letter may serve as a basis for determining deduc-
apply to taxability issues tions for employer contributions thereunder, it is not to be taken as an indication that con-
tributions are necessarily deductible as made. This latter determination can be made only
upon an examination of the employer’s tax return, in accordance with the limitations, and
subject to the conditions of, § 404.
SECTION 22. EFFECT ON Rev. Proc. 2000-6 is superseded and Rev. Proc. 2000-27 is modified.
OTHER REVENUE
PROCEDURES
SECTION 23. EFFECTIVE DATE Except as provided in section 3.03, this revenue procedure is effective January 15, 2001.
Reduction Act (44 U.S.C. 3507) under control number 1545-1520.
lection of information unless the collection of information displays a valid control num-
ber.
6.20, 7.04, 9.09, 10.05, 13, 14, 15, 16, 19.02, and 21.04. This information is required to
determine plan qualification. This information will be used to determine whether a plan
is entitled to favorable tax treatment. The collections of information are mandatory. The
likely respondents are business or other for-profit institutions.
The estimated annual burden per respondent/recordkeeper varies from 1 hour to 40

hours, depending on individual circumstances, with an estimated average of 2.02 hours.
The estimated number of respondents and/or recordkeepers is 80,763.
The estimated annual frequency of responses (used for reporting requirements only) is
once every three years.

Generally tax returns and tax return information are confidential, as required by 26 U.S.C.
6103.
January 2, 2001 230 2001–1 I.R.B.

DRAFTING INFORMATION The principal author of this revenue procedure is James Flannery of Employee Plans.
For further information regarding this revenue procedure, please call Mr. Flannery at (202)
283-9613 (not a toll-free call).
EXHIBIT: SAMPLE NOTICE The Exhibit set forth below, may be used to satisfy the requirements of section 18 of this
TO INTERESTED PARTIES revenue procedure.
2001–1 I.R.B. 231 January 2, 2001

EXHIBIT: SAMPLE NOTICE TO INTERESTED PARTIES
1. Notice To:______________________________[describe class or classes of interested parties]
An application is to be made to the Internal Revenue Service for an advance determination on the qualification of the following em-
ployee pension benefit plan:
2. __________________________________________________
(name of plan)
3. __________________________________________________
(plan number)
4. __________________________________________________
(name and address of applicant)
5. __________________________________________________
(applicant EIN)
6. __________________________________________________
(name and address of plan administrator)
7. The application will be filed on _______________ for an advance determination as to whether the plan meets the qualification
requirements of § 401 or 403(a) of the Internal Revenue Code of 1986, with respect to the plan’s ________________________
[initial qualification, amendment, termination, or partial termination]. The application will be filed with:
EP Determinations
P.O. Box 192
8. The employees eligible to participate under the plan are: __________________________________
9. The Internal Revenue Service ______________[has/has not] previously issued a determination letter with respect to the qualifi-
cation of this plan.
RIGHTS OF INTERESTED PARTIES
10. You have the right to submit to EP Determinations, at the above address, either individually or jointly with other interested par-
ties, your comments as to whether this plan meets the qualification requirements of the Internal Revenue Code.
You may instead, individually or jointly with other interested parties, request the Department of Labor to submit, on your behalf,
comments to EP Determinations regarding qualification of the plan. If the Department declines to comment on all or some of
the matters you raise, you may, individually, or jointly if your request was made to the Department jointly, submit your com-
ments on these matters directly to EP Determinations.
REQUESTS FOR COMMENTS BY THE DEPARTMENT OF LABOR
11. The Department of Labor may not comment on behalf of interested parties unless requested to do so by the lessor of 10 employ-
ees or 10 percent of the employees who qualify as interested parties. The number of persons needed for the Department to com-
ment with respect to this plan is _____________________. If you request the Department to comment, your request must be in
writing and must specify the matters upon which comments are requested, and must also include:
(1) the information contained in items 2 through 5 of this Notice; and
(2) the number of persons needed for the Department to comment.
A request to the Department to comment should be addressed as follows:
January 2, 2001 232 2001–1 I.R.B.

Deputy Assistant Secretary
Pension and Welfare Benefits Administration
ATTN: 3001 Comment Request
U.S. Department of Labor,
COMMENTS TO THE INTERNAL REVENUE SERVICE
12. Comments submitted by you to EP Determinations must be in writing and received by them by . However, if there
are matters that you request the Department of Labor to comment upon on your behalf, and the Department declines, you may
submit comments on these matters to EP Determinations to be received by them within 15 days from the time the Department
notifies you that it will not comment on a particular matter, or by , whichever is later, but not after . A request
to the Department to comment on your behalf must be received by it by if you wish to preserve your
right to comment on a matter upon which the Department declines to comment, or by if you wish to waive that right.
13. Detailed instructions regarding the requirements for notification of interested parties may be found in sections 17 and 18 of Rev.
Proc. 2001–6. Additional information concerning this application (including, where applicable, an updated copy of the plan and
related trust; the application for determination; any additional documents dealing with the application that have submitted to the
Service; and copies of section 17 of Rev. Proc. 2001–6 are available at during the hours of
_________________ for inspection and copying. (There is a nominal charge for copying and/or mailing.)
2001–1 I.R.B. 233 January 2, 2001

APPENDIX
Checklist As part of a § 401(h) or § 420 determination letter request described in section 16 of this revenue procedure the
following checklist may be completed and attached to the determination letter request. If the request relates to
§ 401(h) but not to § 420, complete Part I only. If the request relates to § 420, complete Parts I and II.
PART I CIRCLE SECTION
1. Does the Plan contain a medical benefits account within the meaning of § 401(h) of the Yes No _______
Code? If the medical benefits account is a new provision, items “a” through “h” should
be completed.
a. Does the medical benefits account specify the medical benefits that will be available Yes No _______
and contain provisions for determining the amount which will be paid?
b. Does the medical benefits account specify who will benefit? Yes No _______
c. Does the medical benefits account indicate that such benefits, when added to any life Yes No _______
insurance protection in the Plan, will be subordinate to retirement benefits? (This
requirement will not be satisfied unless the amount of actual contributions to provide
§ 401(h) benefits (when added to actual contributions for life insurance protection under
the Plan) does not exceed 25 percent of the total actual contributions to the Plan (other
than contributions to fund past service credits), determined on an aggregate basis since
the inception of the § 401(h) arrangement.)
d. Does the medical benefits account maintain separate accounts with respect to Yes No _______
contributions to key employees (as defined in § 416(i)(1) of the Code) to fund such benefits?
e. Does the medical benefits account state that amounts contributed must be reasonable Yes No _______
and ascertainable?
f. Does the medical benefits account provide for the impossibility of diversion prior to Yes No _______
satisfaction of liabilities (other than item “7” below)?
g. Does the medical benefits account provide for reversion upon satisfaction of all Yes No _______
liabilities (other than item “7” below)?
h. Does the medical benefits account provide that forfeitures must be applied as soon as Yes No _______
possible to reduce employer contributions to fund the medical benefits?
PART II
2. Does the Plan limit transfers to “Excess Assets” as defined in § 420(e)(2) of the Code? Yes No _______
3. Does the Plan provide that only one transfer may be made in a taxable year (except with
regard to transfers relating to prior years pursuant to § 420(b)(4) of the Code)? Yes No _______
4. Does the Plan provide that the amount transferred shall not exceed the amount reasonably Yes No _______
estimated to be paid for qualified current retiree health liabilities?
5. Does the Plan provide that no transfer will be made after December 31, 2005? Yes No _______
6. Does the Plan provide that transferred assets and income attributable to such assets shall be Yes No _______
used only to pay qualified current retiree health liabilities for the taxable year of transfer?
7. Does the Plan provide that any amounts transferred (plus income) that are not used to pay Yes No _______
qualified current retiree health liabilities shall be transferred back to the defined benefit
portion of the Plan?
January 2, 2001 234 2001–1 I.R.B.

8. Does the Plan provide that amounts paid out of a health benefits account will be treated Yes No _______
as paid first out of transferred assets and income attributable to those assets?
9. Does the Plan provide that participants’ accrued benefits become nonforfeitable on a Yes No _______
termination basis (i) immediately prior to transfer, or (ii) in the case of a participant who
separated within 1 year before the transfer, immediately before such separation?
10. In the case of transfers described in § 420(b)(4) of the Code relating to 1990, does the Yes No _______
Plan provide that benefits will be recomputed and become nonforfeitable for
participants who separated from service in such prior year as described in § 420(c)(2)?
11. Does the Plan provide that transfers will be permitted only if each group health plan Yes No _______
or arrangement contains provisions satisfying § 420(c)(3) of the Code, as amended by
TREA ‘99?
12. Does the Plan define “applicable employer cost”, “cost maintenance period” and Yes No _______
“benefit maintenance period”, as needed, consistently with § 420(c)(3) of the Code,
as amended by TREA ‘99?
13. Do the Plan’s provisions reflect the transition rule in § 535(c)(2) of TREA ‘99, Yes No _______
if applicable?
14. Does the Plan provide that transferred assets cannot be used for key employees? Yes No _______
2001–1 I.R.B. 235 January 2, 2001

26 CFR 601.201: Rulings and determination individuals and organizations regarding instrument having original issue discount
letters.
their status for tax purposes and the tax within the meaning of § 1273 of the Inter-
Rev. Proc. 2001–7 effects of their acts or transactions before nal Revenue Code is not an original issue
the filing of returns or reports that are re- discount obligation within the meaning of
quired by the Internal Revenue Code. § 871(g)(1)(B)(i) when the instrument is
SECTION 1. PURPOSE AND NATURE There are, however, areas where the Ser- payable 183 days or less from the date of
OF CHANGES vice will not issue letter rulings or deter- original issue (without regard to the pe-
.01 This revenue procedure updates mination letters, either because the issues riod held by the taxpayer).
Rev. Proc. 2000–7, 2000–1 I.R.B. 227, by are inherently factual or for other reasons. (2) Section 894. - Income Affected by
providing a current list of areas under the These areas are set forth in sections 3 and Treaty.- Whether a person that is a resi-
4 of this revenue procedure. dent of a foreign country and derives in-
jurisdiction of the Associate Chief Coun-
Section 3 lists areas in which letter rul- come from the United States is entitled to
sel(International) on which the Internal
ings and determination letters will not be benefits under the United States income
Revenue Service will not issue letter rul-
issued under any circumstances. Section tax treaty with that foreign country pur-
ings or determination letters.
4 lists areas in which they will not ordi- suant to the limitation on benefits article.
.02 Changes
narily be issued; in these areas, unique However, the Service may rule regarding
(1) Section 3.02(2),dealing with the
and compelling reasons may justify issu- the legal interpretation of a particular pro-
federal tax consequences of proposed fed-
ing a letter ruling or determination letter. vision within the relevant limitation on
eral, state, local, municipal, or foreign
A taxpayer who plans to request a letter benefits article.
legislation, are removed from areas in
ruling or determination letter in an area (3) Section 954.—Foreign Base Com-
which ruling or determination letters will
described in Section 4 should contact (by pany Income.—The effective rate of tax
not be issued and are moved to § 4.02(6),
telephone or in writing) the Office of As- that a foreign country will impose on in-
dealing with areas in which ruling or de-
sociate Chief Counsel (International) come.
termination letters will not ordinarily be
(hereinafter “the Office”) prior to making (4) Section 1503(d).-Dual Consoli-
issued.
such request and discuss with the Office dated Loss.-Whether the conditions under
(2) New § 4.01 (10), dealing with
the unique and compelling reasons that the regulations for excepting a net operat-
§ 894, Income Affected by Treaty, has
the taxpayer believes justify issuing such ing loss of a dual resident corporation
been added to indicate that the Service
letter ruling or determination letter. from the definition of a dual consolidated
will not ordinarily rule as to whether cer-
While not required, a written submission loss, or for rebutting the presumption that
tain persons will be considered liable to
is encouraged since it will enable Office an event constitutes a triggering event for
tax under the laws of a foreign country for
personnel to arrive more quickly at an un- purposes of § 1.1503–2(g)(2)(iii)(B), are
purposes of determining if such persons
derstanding of the unique facts of each satisfied.
are residents within the meaning of any
case. A taxpayer who contacts the Office .02 General Areas.
United States income tax treaty.
by telephone may be requested to provide (1) The prospective application of the
(3) New § 4.01(16), dealing with § 901,
estate tax to the property or the estate of a
Taxes of Foreign Countries and of Posses- a written submission. The Service may
living person, except that rulings may be
sions of United States, has been added to provide a general information letter in re-
issued on any international issues in a rul-
indicate that the Service will not ordinar- sponse to inquiries in areas on either list.
ing request accepted pursuant to Rev.
ily rule as to whether a foreign levy meets These lists are not all-inclusive. Future
Proc. 88–50, 1988–2 C.B. 711, and sec-
the requirements of a creditable tax under revenue procedures may add or delete
tion 5.05 of Rev. Proc. 2001–1.
§ 901. items. The Service may also decline to
(2) Whether reasonable cause exists
(4) New § 4.01(18), dealing with § 903, rule on an individual case for reasons pe-
under Subtitle F (Procedure and Adminis-
Credit For Taxes In Lieu Of Income, Etc., culiar to that case, and such decision will
tration) of the Code.
Taxes, has been added to provide that the not be announced in the Internal Revenue
(3) Whether a proposed transaction
Service will not ordinarily rule as to Bulletin.
would subject a taxpayer to criminal
whether a foreign levy meets the require- .02 Scope of Application
penalties.
ments of a creditable tax under § 903. This revenue procedure does not pre-
(4) Any area where the ruling request
(5) Section 943(a) is added to clude a director, the Director, (Interna-
does not comply with the requirements of
§ 4.01(19) dealing with whether a product tional), or Area Director, Appeals from
Rev. Proc. 2001–1.
is manufactured or produced for purposes submitting requests for technical advice (5) Any area where the same issue is
of § 927(a), § 936(h)(5), § 954(d), and in the areas listed to the Office. the subject of the taxpayer’s pending re-
§993(c). quest for competent authority assistance
SECTION 2. BACKGROUND AND RULING OR DETERMINATION under a United States tax treaty.
SCOPE OF APPLICATION LETTERS WILL NOT BE ISSUED (6) A “comfort” ruling will not be is-
sued with respect to an issue that is
.01 Background .01 Specific Questions and Problems clearly and adequately addressed by
In the interest of sound tax administra- (1) Section 871(g). - Special Rules for statute, regulations, decisions of a court,
tion, the Service answers inquiries from Original Issue Discount. - Whether a debt tax treaties, revenue rulings, or revenue
January 2, 2001 236 2001–1 I.R.B.

procedures absent extraordinary circum- qualify as annuities or life insurance con- (12) Section 894.—Income Affected
stances (e.g., a request for a ruling re- tracts because of the limitations imposed by Treaty.—Whether the income re-
quired by a governmental regulatory au- by § 72(s) and § 7702(a) is portfolio inter- ceived by a nonresident alien perform-
thority in order to effectuate the est as defined in § 881(c). ing research or teaching at a university
transaction.) (6) Section 892.—Income of Foreign is exempt from federal income tax or
Governments and of International Organi- withholding under United States income
zations.—Whether income received by tax treaties with Austria, Belgium, Peo-
RULING OR DETERMINATION
local governmental authorities of the ples Republic of China, Denmark,
LETTERS WILL NOT ORDINARILY
United Kingdom from certain United Egypt, Federal Republic of Germany,
BE ISSUED
States investments of money allocable to France, Greece, Hungary, Iceland, India,
.01 Specific Questions and Problems their superannuation funds is exempt Indonesia, Ireland, Italy, Jamaica, Japan,
(1) Section 367(a).—Transfers of from federal income taxation. Korea, Luxembourg, Netherlands, Nor-
Property from the United States.— (7) Section 892.—Income of Foreign way, Pakistan, Philippines, Poland, Ro-
Whether an oil or gas working interest is Governments and of International Organi- mania, Sweden, Switzerland, Trinidad
transferred from the United States for use zations.—Whether a foreign government and Tobago, the former Union of Soviet
in the active conduct of a trade or busi- is engaged in commercial activities for Socialist Republics (Armenia, Azerbai-
ness for purposes of § 367(a)(3); and purposes of § 892, and whether income jan, Byelarus, Georgia, Kazakhstan,
whether any other property is so trans- received by a foreign government is de- Kyrgyzstan, Moldova, Russia, Tajik-
ferred, where the determination requires rived from the conduct of such commer- istan, Turkmenistan, Ukraine, Uzbek-
extensive factual inquiry. cial activities. istan), and the United Kingdom. Rev.
(2) Section 367(b).—Other Trans- (8) Section 893.—Compensation of Proc. 87–9, 1987–1 C.B. 368, as modi-
fers.—Whether a foreign corporation is Employees of Foreign Governments and fied by Rev. Proc. 93–22, 1993–1 C.B.
considered a corporation for purposes of International Organizations.—Whether a 535.
any nonrecognition provision listed in foreign government is engaged in commer- (13) Section 894.—Income Affected
§ 367(b), and related issues, unless the cial activities for purposes of § 893, and by Treaty.—Whether a foreign recipient
ruling presents a significant legal issue or whether the services of an employee of a of payments made by a United States
subchapter C rulings are requested in the foreign government are primarily in con- person is ineligible to receive the bene-
context of reorganizations or liquidations nection with such commercial activities. fits of a United States tax treaty under
involving foreign corporations. (9) Section 894.—Income Affected by the principles of Rev. Rul. 89–110,
(3) Section 864.—Definitions and Spe- Treaty.—Whether a taxpayer has a per- 1989–2 C.B. 275.
cial Rules.—Whether a taxpayer is en- manent establishment in the United States (14) Section 894.—Income Affected
gaged in a trade or business within the for purposes of any United States income by Treaty.—Whether a recipient of pay-
United States, and whether income is ef- tax treaty and whether income is attribut- ments is or has been a resident of a coun-
fectively connected with the conduct of a able to a permanent establishment in the try for purposes of any United States tax
trade or business within the United States; United States. treaty. Pursuant to § 1.884–5(f), however,
whether an instrument is a security as de- (10) Section 894.—Income Affected by the Service may rule whether a corpora-
fined in § 1.864–2(c)(2); whether a tax- Treaty.—Whether certain persons will be tion representing that it is a resident of a
payer effects transactions in the United considered liable to tax under the laws of country is a qualified resident thereof for
States in stocks or securities under a foreign country for purposes of deter- purposes of § 884.
§ 1.864–2(c)(2); whether an instrument or mining if such persons are residents (15) Section 894.—Income Affected
item is a commodity as defined in within the meaning of any United States by Treaty.—Whether an entity is treated
§ 1.864–2(d)(3); and for purposes of income tax treaty. But see Rev. Rul. as fiscally transparent by a foreign juris-
§ 1.864–2(d)(1) and (2), whether a com- 2000–59, 2000–52 I.R.B. 593. diction for purposes of §894(c) and the
modity is of a kind customarily dealt in on (11) Section 894.—Income Affected regulations thereunder.
an organized commodity exchange, and by Treaty.—Whether the income received (16) Section 901.—Taxes of Foreign
whether a transaction is of a kind custom- by a nonresident alien student for services Countries and of Possessions of United
arily consummated at such place. performed for a university or other educa- States.—Whether a foreign levy meets
(4) Section 871.—Tax on Nonresident tional institution is exempt from federal the requirements of a creditable tax
Alien Individuals.—Whether the income income tax or withholding under United under § 901.
earned on contracts that do not qualify as States income tax treaties with Belgium, (17) Section 901.—Taxes of Foreign
annuities or life insurance contracts be- Peoples Republic of China, Cyprus, Countries and of Possessions of United
cause of the limitations imposed by Egypt, Federal Republic of Germany, States.—Whether a person claiming a
§ 72(s) and § 7702(a) is portfolio interest France, Iceland, Indonesia, Japan, Korea, credit has established, based on all of
as defined in § 871(h). Morocco, Netherlands, Norway, Pakistan, the relevant facts and circumstances, the
(5) Section 881.—Tax on Income of Philippines, Poland, Romania, Spain, amount (if any) paid by a dual capacity
Foreign Corporations Not Connected with Trinidad and Tobago, and Tunisia. Rev. taxpayer under a qualifying levy that is
United States Business.—Whether the in- Proc. 87–8, 1987–1 C.B. 366, as modified not paid in exchange for a specific eco-
come earned on contracts that do not by Rev. Proc. 93–22, 1993–1 C.B. 535. nomic benefit. See § 1.901–2A(c)(2).
2001–1 I.R.B. 237 January 2, 2001

(18) Section 903.—Credit for Taxes in close of the taxable year (including, for to the disclosure of all relevant informa-
Lieu of Income, Etc., Taxes.—Whether a example, the length of the alien’s stay or tion requested by the Service in process-
foreign levy meets the requirements of a the nature of the alien’s activities). ing the ruling request or in the course of
creditable tax under § 903. (28) Section 7701.—Definitions.— an examination to verify the accuracy of
(19) Sections 927(a), 936(h)(5), Whether an estate or trust is a foreign es- the representations made and to otherwise
943(a), 954(d), 993(c).—Manufactured tate or trust for federal income tax pur- analyze or examine the tax issues in-
Product.—Whether a product is manufac- poses. volved in the ruling request, and (ii)
tured or produced for purposes of (29) Section 7701.—Definitions.- waives all claims to protection of bank or
§ 927(a), § 936(h)(5), § 943(a), § 954(d), Whether an intermediate entity is a con- commercial secrecy laws in the foreign
and § 993(c). duit entity under § 1.881–3(a)(4); whether jurisdiction with respect to the informa-
(20) Section 936.—Puerto Rico and a transaction is a financing transaction tion requested by the Service. In the
Possession Tax Credit.—What constitutes under § 1.881–3(a)(ii); whether the par- event the taxpayer’s or related party’s
a substantial line of business. ticipation of an intermediate entity in a fi- consent to disclose relevant information
(21) Section 956.—Investment of nancing arrangement is pursuant to a tax or to waive protection of bank or com-
Earnings in United States Property.— avoidance plan under § 1.881–3(b); mercial secrecy is determined by the Ser-
Whether a pledge of the stock of a con- whether an intermediate entity performs vice to be ineffective or of no force and
trolled foreign corporation is an indirect significant financing activities under effect, then the Service may retroactively
pledge of the assets of that corporation. § 1.881–3(b)(3)(ii); whether an unrelated rescind any ruling rendered in reliance on
See § 1.956–2(c)(2). intermediate entity would not have partic- such consent.
(22) Section 985.—Functional Cur- ipated in a financing arrangement on (6) The federal tax consequences of
rency.—Whether a currency is the func- substantially the same terms under proposed federal, state, local, municipal,
tional currency of a qualified business unit. § 1.881–3(c). or foreign legislation.
(23) Section 989(a).—Qualified Busi- .02 General Areas (7)(a) Situations involving the interpre-
ness Unit.—Whether a unit of the tax- (1) Whether a taxpayer has a business tation of foreign law or foreign docu-
payer’s trade or business is a qualified purpose for a transaction or arrangement. ments. The interpretation of a foreign law
business unit. (2) Whether a taxpayer uses a correct or foreign document means making a
(24) Section 1058.—Transfers of Se- North American Industry Classification judgment about the import or effect of the
curities under Certain Agreements.— System (NAICS) code or Standard Indus- foreign law or document that goes beyond
Whether the amount of any payment de- trial Classification (SIC) code. its plain meaning.
scribed in § 1058(b)(2) or the amount of (3) Any transaction or series of transac- (b) The Service, at its discretion, may
any other payment made in connection tions that is designed to achieve a differ- consider rulings that involve the interpre-
with a transfer of securities described in ent tax consequence or classification tation of foreign laws or foreign docu-
§ 1058 is from sources within or without under U.S. tax law (including tax treaties) ments. In these cases, the Service may re-
the United States; the character of such and the tax law of a foreign country, quest information in addition to that listed
amounts; and whether the amounts consti- where the results of that different tax con- in sections 8.01(2)(b) and (c) of Revenue
tute a particular kind of income for pur- sequence or classification are inconsistent Procedure 2001–1, including a discussion
poses of any United States income tax with the purposes of U.S. tax law (includ- of the implications of any authority be-
treaty. ing tax treaties). lieved to interpret the foreign law or for-
(25) Section 1503(d).-Dual Consoli- (4) Questions involving the validity of eign document, such as pending legisla-
dated Loss.-Whether an event presump- the federal income tax and other taxes set tion, treaties, court decisions, notices or
tively constitutes a triggering event for forth in the Code, questions on the author- administrative decisions.
purposes of § 1.1503–2(g)(2)(iii)(A)(1)- ity or jurisdiction of the Service to en-
(7), apart from possible rebuttal of the force the Code or collect information, or SECTION 5. EFFECT ON OTHER
presumption under § 1.1503–2 similar matters. REVENUE PROCEDURE
(g)(2)(iii)(B). See section 3.01(4), Rev. (5)(a) Situations where a taxpayer or a Rev. Proc. 2000–7 is superseded.
Proc. 2001–7. related party is domiciled or organized in a
(26) Section 2501.—Imposition of foreign jurisdiction with which the United DRAFTING INFORMATION
Tax.—Whether a partnership interest is States does not have an effective mecha-
intangible property for purposes of nism for obtaining tax information with re- This revenue procedure was compiled
§ 2501(a)(2) (dealing with transfers of inspect to civil tax examinations and criminal by Gerard Traficanti of the Office of As-
tangible property by a nonresident not a tax investigations, which would preclude sociate Chief Counsel (International).
citizen of the United States). the Service from obtaining information lo- For further information about this revenue
(27) Section 7701.—Tax on Nonresi- cated in such jurisdiction that is relevant to procedure, please contact Mr. Traficanti at
dent Alien Individuals.—Whether an the analysis or examination of the tax issues (202) 622-3619 (not a toll-free number).
alien individual is either a resident or a involved in the ruling request.
nonresident of the United States, in situa- (b) The provisions of subsection
tions where the determination depends on 4.02(5)(a) above shall not apply if the tax-
facts that cannot be confirmed until the payer or affected related party (i) consents
January 2, 2001 238 2001–1 I.R.B.

Rev. Proc. 2001–8

TABLE OF CONTENTS
SECTION 1. PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
SECTION 2. CHANGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

.01 In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
.02 New mailing addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
.03 New categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
.04 Compliance and correction fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
.05 Fee schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
SECTION 3. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

.01 Legislation authorizing user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
.02 Related revenue procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
SECTION 4. SCOPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

.01 Requests to which user fees apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
.02 Requests and other actions that do not require the payment of a user fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
.03 Exemptions from the user fee requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
SECTION 5. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
SECTION 6. FEE SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242

EMPLOYEE PLANS USER FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
.01 Letter ruling requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
.02 Requests for certain administrative exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
.03 Administrative scrutiny determinations with respect to separate lines of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
.04 Opinion letters and advisory letters on master and prototype plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
.05 Opinion letters on prototype individual retirement accounts and/or annuities, simplified employee pensions,
SIMPLE IRAs, SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
.06 Determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
.07 Advisory letters on volume submitter plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
EXEMPT ORGANIZATIONS USER FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

.08 Letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
.09 Determination letters and requests for group exemption letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
.10 Summary of Exempt Organization fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS, DETERMINATION LETTERS, ETC. . . . . . 247
.01 Matters handled by EP or EO Technical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
.02 Matters handled by EP or EO Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES, ISSUES,

TRANSACTIONS, OR ENTITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
.01 Requests involving several offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
.02 Requests involving several fee categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
.03 Requests involving several issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
.04 Requests involving several unrelated transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
.05 Requests for separate letter rulings for several entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
SECTION 9. PAYMENT OF FEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248

.01 Method of payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
.02 Transmittal forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
.03 Effect of nonpayment or payment of incorrect amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
2001–1 I.R.B. 239 January 2, 2001

SECTION 10. REFUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
.01 General rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
.02 Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
SECTION 12. EFFECT ON OTHER DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
SECTION 13. EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
SECTION 14. PAPERWORK REDUCTION ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
SECTION 1. PURPOSE cation for exemption with its request for a .02 Related revenue procedures. The
group exemption letter. various revenue procedures that require
This revenue procedure provides payment of a user fee, or an administra-
guidance for complying with the user SECTION 3. BACKGROUND tive scrutiny determination user fee are
fee program of the Internal Revenue described in the appendix to this revenue
Service as it pertains to requests for let- .01 Legislation authorizing user fees.
Section 10511 of the Revenue Act of 1987, procedure.
ter rulings, determination letters, etc., on
matters under the jurisdiction of the Pub. L. 100-203, 101 Stat. 1330-382, 1330- SECTION 4. SCOPE
Commissioner, Tax Exempt and Gov- 446, enacted December 22, 1987, directed
ernment Entities Division; and requests the Secretary of the Treasury or delegate .01 Requests to which user fees apply.
for administrative scrutiny determina- (the “Secretary”) to establish a program In general, user fees apply to all requests
tions under Rev. Proc. 93–41, 1993–2 requiring the payment of user fees for for letter rulings, opinion letters, determi-
C.B. 536. requests to the Service for letter rulings, nation letters, and advisory letters submit-
opinion letters, determination letters, and ted by or on behalf of taxpayers, sponsor-
SECTION 2. CHANGES similar requests. The fees charged under ing organizations or other entities as
the program (1) were to vary according to described in this revenue procedure.
.01 In general. This revenue procedure categories or subcategories established by Further, administrative scrutiny determi-
is a general update of Rev. Proc. 2000–8, the Secretary; (2) were to be determined nation user fees, described in Rev. Proc.
2000–1 I.R.B. 230. after taking into account the average time 93–41, are collected through the user fee
.02 New Mailing Addresses. Section 7 for, and difficulty of, complying with program described in this revenue proce-
has been updated to reflect new mailing requests in each category and subcategory; dure. Requests to which a user fee or an
addresses. and (3) were to be payable in advance. The administrative scrutiny determination user
.03 New Categories. Section 17.02 of Secretary was to provide for exemptions fee is applicable must be accompanied by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553, and reduced fees under the program as the the appropriate fee as determined from the
modified section 6.07 of Rev. Proc. Secretary determined to be appropriate, but fee schedule set forth in section 6 of this
2000–8 with respect to the user fees for the average fee applicable to each category revenue procedure. The fee may be
advisory letters for certain volume sub- must not be less than the amount specified refunded in limited circumstances as set
mitter plans. This revenue procedure in the statute. The fees were to apply to forth in section 10.
incorporates these changes. requests made on or after February 1, 1988, .02 Requests and other actions that do
.04 Compliance and Correction Fees. and before September 30, 1990. Section not require the payment of a user fee.
Compliance fees and compliance correc- 11319 of the Omnibus Budget Actions which do not require the payment
tion fees under the Voluntary Compliance Reconciliation Act of 1990, Pub. L. 101- of a user fee include the following:
Resolution (VCR) Program, the 508, 1991–2 C.B. 481, 511, extended the (1) Requests for information letters
Standardized VCR Procedure (SVP), time during which the user fees would be as defined in Rev. Proc. 2001–4, page
Walk-in CAP, and the Tax-Sheltered applicable through September 30, 1995. 121, this Bulletin.
Annuity Voluntary Correction (TVC) Section 743 of the Uruguay Round (2) Elections pertaining to automatic
Program are not described in this proce- Agreements Act, Pub. L. 103-465, 1995–1 extensions of time under § 301.9100–1 of
dure because they are compliance fees or C.B. 230, 239, extended the time during the Procedure and Administration regula-
correction fees and not user fees. For fur- which the user fees will be applicable tions.
ther guidance, please see Rev. Proc. through September 30, 2000. Section 2 of (3) Use of forms which are not to be
2000–16, 2000–6 I.R.B. 518. Pub. L. 104-117, Tax Relief to Operation filed with the Service. For example, no
.05 Fee Schedule. A note has been Joint Endeavor Participants Act, 1996–3 user fee is required in connection with the
added to section 6.09(3) to clarify that a C.B. 1, extended the time during which the use of Form 5305, Individual Retirement
separate user fee is required when a cen- user fees will be applicable through Trust Account, or Form 5305-A, Individ-
tral organization submits an initial appli- September 30, 2003. ual Retirement Custodial Account, in
January 2, 2001 240 2001–1 I.R.B.

order to adopt an individual retirement ac- .03 Exemptions from the user fee purposes (chapters 21, 22, 23, and 24 of
count under § 408(a). This form should requirements. The following exemptions subtitle C of the Code) submitted on Form
not be filed with the Service. apply to the user fee requirements. These SS-8, Information for Use in Determining
(4) In general, plan amendments are the only exemptions that apply: Whether a Worker is an Employee for
whereby sponsors amend their plans by (1) Departments, agencies, or instru- Federal Employment Taxes and Income
adopting, word-for-word, the model lan- mentalities of the United States that cer- Tax Withholding, or its equivalent. Such a
guage contained in a revenue procedure tify that they are seeking a letter ruling, request may be submitted in connection
which states that the amendment should determination letter, opinion letter or sim- with an application for a determination on
not be submitted to the Service and that ilar letter on behalf of a program or activ- the qualification of a plan when it is neces-
the Service will not issue new opinion, ity funded by federal appropriations. The sary to determine whether an employer-
advisory, ruling or determination letters fact that a user fee is not charged has no employee relationship exists. See section
for plans that are amended solely to add bearing on whether an applicant is treated 6.13 of Rev. Proc. 2001–6, page 194, this
the model language. as an agency or instrumentality of the Bulletin. In that case, although no user fee
(5) Change in accounting period or United States for purposes of any provi- applies to the request submitted on Form
accounting method permitted by a pub- sion of the Code. SS-8, the applicable user fee must be paid
lished revenue procedure that permits an (2) Requests as to whether a worker in connection with the application for de-
automatic change without prior approval is an employee for federal employment termination on the plan’s qualification.
of the Commissioner. taxes and federal income tax withholding
SECTION 5. DEFINITIONS
The following terms used in this revenue procedure are defined in the pertinent revenue procedures referred to below, which are
described in the appendix:
Administrative scrutiny determination Rev. Proc. 93–41
Adoption agreement Rev. Proc. 2000–20
Advisory letter Rev. Procs. 2000–20, 2001–6
Basic plan document Rev. Proc. 2000–20
Determination letter Rev. Procs. 90–27, 2001–4
Dual-purpose IRA Rev. Proc. 98–59
Group exemption letter Rev. Proc. 80–27
Information letter Rev. Proc. 2001–4
Letter ruling Rev. Proc. 2001–4
Mass submitter Rev. Procs. 87–50, 2000–20
Mass submitter plan Rev. Proc. 2000–20
Master plan Rev. Proc. 2000–20
Minor modification Rev. Procs. 87–50, 2000–20
Opinion letter Rev. Procs. 2000–20, 2001–4
Prototype plan Rev. Proc. 2000–20
Roth IRA Rev. Proc. 98–59
SIMPLE IRA Rev. Proc. 97–29
2001–1 I.R.B. 241 January 2, 2001

SIMPLE IRA Plan Rev. Proc. 97–29
Plan Sponsor Rev. Proc. 2000–20
Sponsoring organization Rev. Procs. 87–50
Volume submitter lead specimen plan Rev. Proc. 2000–20
Volume submitter plan Rev. Proc. 2001–6
Volume submitter specimen plan Rev. Proc. 2001–6
Word-for-word identical adoption Rev. Procs. 87–50, 2000–20
SECTION 6. FEE SCHEDULE
The amount of the user fee payable with respect to each category or subcategory of submission is as set forth in the following
schedule.
CATEGORY FEE
EMPLOYEE PLANS USER FEES

.01 Letter ruling requests.
(1) Computation of exclusion for annuitant under § 72 $85
(2) Change in plan year (Form 5308) $130
Note: No user fee is required if the requested change is permitted to be made pursuant to the procedure for automatic approval set
forth in Rev. Proc. 87–27, 1987–1 C.B. 769. In such a case, Form 5308 should not be submitted to the Service.
(3) Change in funding method $500

(4) Approval to become a nonbank trustee (see § 1.408–2(e) of the Income Tax Regulations) $3,250
(5) Waiver of minimum funding standard, under § 412(d):
(a) Waiver of $1,000,000 or more $4,800
(b) Waiver of less than $1,000,000 $2,050
(6) Waiver of excise tax under § 4971 (b):
(7) Waiver of the excise tax, under § 4971(f), on failure to pay a liquidity shortfall:
(8) Letter ruling under Rev. Proc. 90–49, 1990–2 C.B. 620 $300
(9) Letter ruling involving the determination of the account limit under § 419A(c) $2,275
(10) Individually designed simplified employee pension (SEP) $2,275
(11) All other letter rulings $2,275
Reduced fees, or augmented fee, applicable to all other letter rulings:

(a) Letter ruling requests by or on behalf of eligible retirement plans (within the meaning of $600
§ 402(c)(8)(B)) with assets of less than $200,000
(b) Letter ruling requests from U.S. citizens and resident alien individuals, domestic trusts, $600
and domestic estates whose “total income” as reported on their federal income tax
return (as amended) filed for a full (12 months) taxable year ending before the date
the request is filed, plus any interest income not subject to tax under § 103 (interest
on state and local bonds) for that period, is less than $200,000
Note: The reduced fee applies to a married individual if the combined gross income of the applicant and the applicant’s spouse is
less than $200,000. The gross incomes of the applicant and the applicant’s spouse are not combined, however, if the applicant is
legally separated from his or her spouse and the spouses do not file a joint income tax return with each other. In the case of a letter
ruling request from a domestic estate or trust that, at the time the request is filed, has not filed an income tax return for a full
taxable year, the reduced fee will be applicable if the decedent’s or (in the case of an individual grantor) the grantor’s total income
January 2, 2001 242 2001–1 I.R.B.

as reported on the last return filed for a full taxable year ending before the date of death or the date of the transfer, taking into
account any additions required to be made to total income described in this subparagraph, is less than $200,000.
(c) Letter ruling requests from organizations exempt from income tax under “Subchapter $600
F-Exempt Organizations” with gross receipts of less than $200,000
Note: An organization exempt from income tax under Subchapter F must certify in its request for a letter ruling that its gross
receipts for the last full taxable year before the request was filed were less than $200,000.
(d) In situations in which a taxpayer requests substantially identical letter rulings for multiple $200
entities with a common member or sponsor, or for multiple members of a common entity,
each additional letter ruling request after the $2,275 fee or the $600 reduced fee, as
applicable, has been paid for the first letter ruling request
(e) In situations in which a taxpayer requests a single letter ruling involving substantially identical $200
issues of fact and law with respect to multiple members of a common entity, for each additional
entity after the $2,275 fee or $600 reduced fee, as applicable, has been paid for the first entity
.02 Requests for certain administrative exemptions.

Requests for administrative exemptions for participant-directed transactions that are in compliance $2,275
with the regulations under § 404(c) of the Employee Retirement Income Security Act of 1974
(ERISA) but may result in prohibited transactions under § 4975
Note: The provisions of Rev. Proc. 75–26, 1975–1 C.B. 722, are applicable to such requests.
.03 Administrative scrutiny determinations with respect to separate lines of business.
(1) For the first separate line of business for which a determination is requested $4,350
(2) For each additional separate line of business for which a determination is requested $1,400
.04 Opinion letters and advisory letters on master and prototype plans.
(1) Mass submitter M & P plan, per basic plan document, new or amended, with one adoption agreement $3,250
(2) Mass submitter M & P plan, per each additional adoption agreement $425
(3) Sponsor’s word-for-word identical adoption of M & P mass submitter’s basic plan $110
document (or an amendment thereof), per adoption agreement
Note 1: Mass submitters that are sponsors in their own right are liable for this fee.
Note 2: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applications on behalf of word-for-
word adopters with respect to a particular adoption agreement, only the first 300 such applications will be subject to the fee; no fee
will apply to those in excess of the first 300 such applications submitted within the 12-month period.
(4) Sponsor’s minor modification of M & P mass submitter’s plan document, per adoption agreement $250
(5) Nonmass submission (new or amended) by M & P sponsor, per adoption agreement $1,950
(6) M & P mass submitter’s request for an advisory letter with respect to the addition of optional $525
provisions following issuance of a favorable opinion letter (see section 16.031(c) of Rev. Proc. 2000–20,
per basic plan document (regardless of the number of adoption agreements)
(7) M & P mass submitter’s addition of new adoption agreements after the basic plan document $425
and associated adoption agreements have been approved, per adoption agreement
(8) Assumption of sponsorship of an approved M & P plan, without any amendment to the plan $250
document, by a new entity, as evidenced by a change of employer identification number
.05 Opinion letters on prototype individual retirement accounts and/or annuities, simplified employee pensions, SIMPLE IRAs,
SIMPLE IRA Plans, and Roth IRAs.
(1) Mass submission of a prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, $1,150
per plan document, new or amended
(2) Sponsoring organization’s word-for-word identical adoption of mass submitter’s prototype IRA, $110
SEP, SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per plan document or an amendment thereof
2001–1 I.R.B. 243 January 2, 2001

Note: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applications on behalf of word-for-
word adopters of prototype IRAs with respect to a particular plan document, only the first 300 such applications will be subject to
the fee; no fee will apply to those in excess of the first 300 such applications submitted within the 12-month period.
(3) Sponsoring organization’s minor modification of mass submitter’s prototype IRA, SEP, $300
SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA, per plan document
(4) Sponsoring organization’s nonmass submission of prototype IRA, SEP, SIMPLE IRA, $425
SIMPLE IRA Plan, or Roth IRA, per plan document
(5) Opinion letters on dual-purpose (combined traditional and Roth) IRAs:
(a) Mass submission of a prototype dual-purpose IRA, per plan document, new or amended $2,275
(b) Sponsoring organization’s word-for-word identical adoption of mass submitter’s prototype $110
dual-purpose IRA, per plan document or an amendment thereof
Note: If a mass submitter submits, in any 12-month period ending January 31, more than 300 applications on behalf of word-for-
word adopters of prototype dual-purpose IRAs with respect to a particular plan document, only the first 300 such applications will
be subject to the fee; no fee will apply to those in excess of the first 300 such applications submitted within the 12-month period.
(c) Sponsoring organization’s minor modification of mass submitter’s prototype $600
dual-purpose IRA, per plan document
(d) Sponsoring organization’s nonmass submission of prototype dual-purpose $875
IRA, per plan document
.06 Determination letters

(1) If the plan is intended to satisfy a design-based or nondesign-based safe harbor, or if the
applicant is not electing to receive a determination with respect to any of the general tests, and the
applicant is not electing to receive a determination with respect to the average benefit test:
(a) Form 5300 $700
(b) Form 5303 $700
(c) Form 5307 $125
(d) Form 5310 $225
(e) Form 6406 $125
(f) Multiple employer plans (Form 5300):
(i) 2 to 10 employers $700
(ii) 11 to 99 employers $1,400
(iii) 100 to 499 employers $2,800
(iv) Over 499 employers $5,600
Note: In the case of a multiple employer plan that is adopted by other employers after the initial submission, the fee would be the
same as in paragraph (1) above. If only one employer adopts the plan in any subsequent year, the fee would be $700.
(g) Multiple employer plans (Form 5310):

(ii) 11 to 99 employers $450
(iii) 100 to 499 employers $900
(2) If the applicant is electing to receive a determination with respect to the average benefit
test and/or any of the general tests:
(a) Form 5300 or Form 5303 $1,250
(b) Form 5307 $1,000
(c) Form 5310 $375
(d) Multiple employer plans (Form 5300):
(i) 2 to 10 employers $1,250
(ii) 11 to 99 employers $2,000
Note: In the case of a multiple employer plan that is adopted by other employers after the initial submission, the fee would be the
same as in paragraph (2) above. If only one employer adopts the plan in any subsequent year, the fee would be $1,250.
January 2, 2001 244 2001–1 I.R.B.

(e) Multiple employer plans (Form 5310):
(ii) 11 to 99 employers $600
(3) Group trusts contemplated by Rev. Rul. 81–100, 1981–1 C.B. 326 $750
.07 Advisory letters on volume submitter plans.

Volume submitter specimen plans $1,500
Volume Submitter lead specimen plan $3,000
Volume submitter specimen plan that is word-for-word identical to a lead specimen plan $100
EXEMPT ORGANIZATIONS USER FEES
.08 Letter rulings.

(1) Applications with respect to change in accounting period (Form 1128) $140
Note: No user fee is charged if the procedure described in Rev. Proc. 85–58, 1985–2 C.B. 740, is used by timely filing the
appropriate information return, or if the procedure described in Rev. Proc. 76–10, 1976–1 C.B. 548, for organizations with group
exemptions is followed.
(2) Applications with respect to change in accounting method (Form 3115) $140
Note: No user fee is charged if the method described in Rev. Proc. 97–37, 1997–2 C.B. 455, is used. Taxpayers complying timely
with Rev. Proc. 97–37 will be deemed to have obtained the consent of the Commissioner of Internal Revenue to change their
method of accounting.
(3) Advance approval of scholarship grant-making procedures of a private foundation that has an $220
agreement for the administration of the scholarship program with the National Merit Scholarship Corp.,
or similar organization administering a scholarship program shown to meet Service requirements
(4) Request for a letter ruling as to whether an organization exempt from federal income tax is required $220
to file an annual return under § 6033
Note 1: See Rev. Proc. 95–48, 1995–2 C.B. 418, which specifies that governmental units and affiliates of governmental units that
are exempt from federal income tax under § 501(a) are not required to file annual information returns on Form 990, Return of
Organization Exempt from Income Tax.
Note 2: There is no additional charge for a determination of the § 6033 filing requirement from an organization seeking recognition
of exempt status under § 501 if the organization submits the information required by line 9 of Part I of Form 1023, Application for
Recognition of Exemption under Section 501(c)(3) of the Code, or submits a separate written request with its application for recog-
nition of exemption. Only the user fee for the initial application for recognition of exemption applies.
(5) Request for approval of a qualified subsidiary related to a § 501(c)(25) organization. $550
(6) All other letter rulings $2,275
Reduced fees applicable to all other letter rulings:

(a) Organizations with gross receipts less than $200,000 $600
Note: An exempt organization seeking a reduced fee must certify in the letter ruling request that its gross receipts for the last tax-
able year before the request is filed were less than $200,000.
(b) Letter ruling requests from U.S. citizens and resident alien individuals, domestic trusts, $600
and domestic estates whose “total income” as reported on their federal income tax return
(as amended) filed for a full (12 months) taxable year ending before the date the request
is filed, plus any interest income not subject to tax under § 103 (interest on state and
local bonds) for that period, is less than $200,000
Note: The reduced fee applies to a married individual if the combined gross income of the applicant and the applicant’s spouse is
less than $200,000. The gross incomes of the applicant and the applicant’s spouse are not combined, however, if the applicant is
legally separated from his or her spouse and the spouses do not file a joint income tax return with each other. In the case of a letter
2001–1 I.R.B. 245 January 2, 2001

ruling request from a domestic estate or trust that, at the time the request is filed, has not filed an income tax return for a full taxable
year, the reduced fee will be applicable if the decedent’s or (in the case of an individual grantor) the grantor’s total income as re-
ported on the last return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any
additions required to be made to total income described in this subparagraph, is less than $200,000.
(c) Letter ruling requests in which a taxpayer requests substantially identical letter rulings for $200
multiple entities with a common member or activity, or multiple members of a common entity, each
additional letter ruling request after the $2,275 fee or the $600 reduced fee, as applicable, has been
paid for the first letter ruling request
.09 Determination letters and requests for group exemption letters.

(1) Initial application for exemption under § 501 or § 521 from organizations (other than pension, $150
profit-sharing, and stock bonus plans described in § 401) that have had annual gross receipts averaging
not more than $10,000 during the preceding four years, or new organizations that anticipate gross
receipts averaging not more than $10,000 during their first four years
Note: Organizations seeking this reduced fee must sign a certification with their application that the receipts are or will be not
more than the indicated amounts.
(2) Initial application for exempt status from organizations otherwise described in paragraph $500
(1) of this section 6.13 whose actual or anticipated gross receipts exceed the $10,000 average annually
Note: If an organization that is already recognized as exempt under § 501(c) seeks reclassification under another subparagraph of
§ 501(c), a new user fee will be charged whether or not a new application is required. An additional fee applies to organizations that
seek recognition of exemption under § 501(c)(4) (unless requested at the time of the § 501(c)(3) application) for a period for which
they do not qualify for exemption under § 501(c)(3) because their application was filed late and they do not qualify for relief under
§ 301.9100–1.
(3) Group exemption letters $500
Note: An additional fee under (1) or (2) above is required when a central organization submits an initial application for exemption
with its request for a group exemption letter.
.10 Summary of Exempt Organization Fees
This table summarizes the various types of exempt organization issues, indicates the office of jurisdiction for each type, and lists
the applicable user fee. Reduced fees may be applicable in certain instances.
ISSUE OFFICE FEE

Accounting period and method changes Technical $140
Advance ruling period inquiries Determinations none
Amendments, reorganizations, name changes Determinations none
Application for recognition of exemption Determinations $500
Confirmation of exemption Determinations none
Qualified subsidiaries of section 501 (c)(25) organizations Technical $550
Regulation 301.9100 relief in connection with applications Determinations none
for recognition of exemption
Section 507 terminations
(a) Notice under section 507(b)(1) or (2) Determinations none
(b) Advance ruling under 507(b)(1) or (2) Technical $2,275
Section 514(b)(3) Neighborhood Land Use Rule Technical none
Section 4940(d) exempt operating foundation status Determinations none
January 2, 2001 246 2001–1 I.R.B.

Section 4942(g)(2) set-asides notification Determinations none
Section 4943(c)(7) extensions of disposal period Technical $2,275
Section 4945 advance approval of organization’s grant making procedures. Determinations none
Section 4945(f) advance approval of voter registration activities Determinations none
Section 6033 annual information return filing requirements
(a) requested with original application Determinations none
(b) requested after recognition of exemption Technical $220
Unusual grants to certain organizations under sections Determinations none
170(b)(1)(A)(vi) and 509(a)(2)
SECTION 7. MAILING ADDRESS Note: Hand delivered requests must be of the offices within Headquarters (for
FOR REQUESTING LETTER marked RULING REQUEST SUB- example, one issue is under the jurisdic-
RULINGS, DETERMINATION MISSION. The delivery should be made: tion of the Associate Chief Counsel
LETTERS, ETC. To the following address between the (Income Tax & Accounting) and another
hours of 8:15 a.m. and 5:00 p.m. where a issue is under the jurisdiction of the
.01 Matters handled by EP or EO Commissioner, Tax Exempt and
Technical. Requests should be mailed to receipt will be given:
Government Entities Division), only one
the appropriate address set forth in this Courier’s Desk fee applies, namely the highest fee that
section 7.01. Internal Revenue Service otherwise would apply to each of the
(1) Employee plans letter rulings Attention: T:AS offices involved. See Rev. Proc.
under Rev. Procs. 79–61, 79–62, 1111 Constitution Avenue, N.W. 2001–1, this Bulletin, for the user fees
87–50, 90–49, 94–41, 94–42, Washington, D. C. 20224 applicable to issues under the jurisdic-
2000–41 or 2001–4: tion of the Associate Chief Counsel
.02 Matters handled by EP or EO
Internal Revenue Service Determinations Office. The following (Corporate), the Associate Chief
Attention: EP Letter Rulings types of requests and applications are han- Counsel (Financial Institutions &
P.O. Box 27063 dled by the EP or EO Determinations Products), the Associate Chief Counsel
McPherson Station Office and should be sent to the Internal (Income Tax & Accounting), the
Washington, D.C. 20038 Revenue Service in Covington, Kentucky: Associate Chief Counsel ( Passthroughs
requests for determination letters and vol- & Special Industries), the Associate
(2) Employee plans opinion letters Chief Counsel (Procedure and
or advisory letters under Rev. ume submitter advisory letters on the qual-
ified status of employee plans under §§ Administration), the Associate Chief
Procs. 87–50, 97–29, 98–59 and Counsel (International) or the Division
2000–20: 401, 403(a), and 409, and the exempt status
of any related trust under § 501; applica- Counsel/Associate Chief Counsel (Tax
Internal Revenue Service tions for recognition of tax exemption on Exempt and Government Entities).
Attention: EP Opinion/ Form 1023, Form 1024 and Form 1028; .02 Requests involving several fee
Advisory Letter and other applications for recognition of categories. If a request dealing with
P.O. Box 27063 qualification or exemption. The address is: only one transaction involves more than
McPherson Station one fee category, only one fee applies,
Washington, D.C. 20038 Internal Revenue Service namely the highest fee that otherwise
P.O. Box 192 would apply to each of the categories
(3) Employee plans administrative Covington, KY 41012-0192 involved.
scrutiny determinations under Rev. Proc. .03 Requests involving several issues.
93–41: Applications shipped by Express Mail
or a delivery service should be sent to: If a request dealing with only one transac-
Internal Revenue Service tion involves several issues, or a request
Attention: Administrative Internal Revenue Service for a change in accounting method deal-
Scrutiny 201 West Rivercenter Blvd. ing with only one item or sub-method of
P.O. Box 27063 Attn: Extracting Stop 312 accounting involves several issues, or a
McPherson Station Covington, KY 41011 request for a change in accounting period
Washington, D.C. 20038 dealing with only one item involves sev-
SECTION 8. REQUESTS eral issues, the request is treated as one
(4) Exempt organizations letter rul- INVOLVING MULTIPLE OFFICES, request. Therefore, only one fee applies,
ings: FEE CATEGORIES, ISSUES, namely the fee that applies to the particu-
Internal Revenue Service TRANSACTIONS, OR ENTITIES lar category or subcategory involved. The
Attention: EO Letter Rulings addition of a new issue relating to the
.01 Requests involving several same transaction will not result in an addi-
P.O. Box 27720
offices. If a request dealing with only tional fee, unless the issue places the
McPherson Station
one transaction involves more than one transaction in a higher fee category.
2001–1 I.R.B. 247 January 2, 2001

.04 Requests involving several unre- whether to immediately return submis- been closed by the Service because
lated transactions. If a request involves sions that are not accompanied by a essential information has not been sub-
several unrelated transactions, or a properly completed check or money mitted timely, the request may be
request for a change in accounting order or that are accompanied by a reopened and treated as a new request,
method involves several unrelated items check or money order for less than the but the taxpayer must pay another user
or sub-methods of accounting, or a correct amount. In those instances fee before the case can be reopened. See
request for a change in accounting peri- where the submission is not immedi- section 11.04(5) of Rev. Proc. 2001–4,
od involves several unrelated items, ately returned, the requester will be con- page 121, this Bulletin.
each transaction or item is treated as a tacted and given a reasonable amount of .02 Examples.
separate request. As a result, a separate time to submit the proper fee. If the (1) The following are examples of
fee will apply for each unrelated transac- proper fee is not received within a rea- situations in which the fee will not be
tion or item. An additional fee will sonable amount of time, the entire sub- refunded:
apply if the request is changed by the mission will then be returned. However, (a) The request for a letter rul-
addition of an unrelated transaction or the respective offices of the Service, in ing, determination letter, etc. is with-
item not contained in the initial submis- their discretion, may defer substantive drawn at any time subsequent to its re-
sion. consideration of a submission until ceipt by the Service, unless the only
.05 Requests for separate letter rul- proper payment has been received. reason for withdrawal is that the Service
ings for several entities. Each entity (2) An application for a determina- has advised the requester that a higher
involved in a transaction (for example, tion letter will not be returned merely user fee than was sent with the request is
an exempt hospital reorganization) that because Form 8717 or Form 8718 was applicable and the requester is unwilling
desires a separate letter ruling in its own not attached. to pay the higher fee. For example, no
name must pay a separate fee regardless (3) The return of a submission to fee will be refunded where the taxpayer
of whether the transaction or transac- the requester may adversely affect sub- has been advised that a proposed ad-
tions may be viewed as related. In cer- stantive rights if the submission is not verse ruling is contemplated and subse-
tain situations, however, a reduced fee perfected and resubmitted to the Service quently withdraws its submission.
may be charged. See sections 6.01(11) within 30 days of the date of the cover (b) The request is procedurally
and 6.08(6) of this revenue procedure. letter returning the submission. Exam- deficient, although accompanied by the
ples of this are: (a) where an application proper fee and is not timely perfected by
SECTION 9. PAYMENT OF FEE for a determination letter is submitted the requester. When there is a failure to
prior to the expiration of the remedial timely perfect the request, the case will
.01 Method of payment. Each request be considered closed and the failure to
to the Service for a letter ruling, deter- amendment period under § 401(b) and is
returned because no user fee was at- perfect will be treated as a withdrawal
mination letter, opinion letter, etc. must for purposes of this revenue procedure.
be accompanied by a check or money tached, the submission will be timely if
it is resubmitted by the expiration of the (c) A letter ruling, determination
order, payable to the United States letter, etc. is revoked in whole or in part
Treasury, in the appropriate amount. remedial amendment period or, if later,
at the initiative of the Service. The fee
Taxpayers should not send cash. within 30 days after the application was
paid at the time the original letter ruling,
.02 Transmittal forms. Form 8717, returned; and (b) where an application
determination letter, etc. was requested
User Fee for Employee Plan for exemption under § 501(c)(3) is sub-
will not be refunded.
Determination Letter Request, and Form mitted before expiration of the period
(d) The request contains several
8718, User Fee for Exempt Organization provided by § 1.508–1(a)(2) and is re-
issues and the Service rules on some,
Determination Letter Request, are turned because no user fee was attached,
but not all, of the issues. The highest
intended to be used as attachments to the submission will be timely if it is re-
fee applicable to the issues on which the
determination letter and advisory letter submitted before expiration of the pe-
Service rules will not be refunded.
applications. Space is reserved for the riod provided by § 1.508–1(a)(2) or
(e) The taxpayer asserts that a
attachment of the applicable user fee within 30 days, whichever is later.
letter ruling the taxpayer received cover-
check or money order. No similar form (4) If a check or money order is for
ing a single issue is erroneous or not re-
has been designed to be used in connec- more than the correct amount, the sub-
sponsive (other than an issue on which
tion with requests for letter rulings, mission will be accepted and the amount
the Service has declined to rule) and re-
opinion letters, or administrative scruti- of the excess payment will be returned
quests reconsideration. The Service,
ny determinations. to the requester. upon reconsideration, does not agree
.03 Effect of nonpayment or payment SECTION 10. REFUNDS that the letter ruling is erroneous or is
of incorrect amount. It will be the gen- not responsive. The fee accompanying
eral practice of the Service that: .01 General rule. In general, the fee the request for reconsideration will not
(1) The respective offices within will not be refunded unless the Service be refunded.
the Service that are responsible for issu- declines to rule on all issues for which a (f) The situation is the same as
ing letter rulings, determination letters, ruling is requested. In the case of a described in subparagraph (e) of this
etc. will exercise discretion in deciding request for a letter ruling, if the case has section 10.02(1) except that the letter
January 2, 2001 248 2001–1 I.R.B.

ruling covered several unrelated transac- ing a single issue is erroneous or is not re- tion of the Service’s decision not to rule
tions. The Service, upon reconsidera- sponsive (other than an issue on which the on an issue. Once the Service agrees to
tion, does not agree with the taxpayer Service declined to rule) and requests re- rule on the issue, the fee accompanying
that the letter ruling is erroneous or is not consideration. The Service agrees, upon the request for reconsideration will be re-
responsive for all of the transactions, but reconsideration, that the letter ruling is er- funded.
does agree that it is erroneous as to one roneous or is not responsive. The fee ac-
transaction. The fee accompanying the companying the taxpayer’s request for re- SECTION 11. REQUEST FOR
request for reconsideration will not be reconsideration will be refunded. RECONSIDERATION OF USER FEE
funded except to the extent applicable to (b) In a situation to which section A taxpayer that believes the user fee
the transaction for which the Service 10.02(1)(h) of this revenue procedure charged by the Service for its request for a
agrees the letter ruling was in error. does not apply, the requester requests a letter ruling, determination letter, etc. is
(g) The request is for a supple- supplemental letter ruling, determination either not applicable or incorrect and
mental letter ruling, determination letter, letter, etc. to correct a mistake that the wishes to receive a refund of all or part of
etc. concerning a change in facts (whether Service agrees it made in the original let- the amount paid (see section 10 of this
significant or not) relating to the transac- ter ruling, determination letter, etc., such revenue procedure) may request reconsid-
tion ruled on. as a mistake in the statement of facts or in eration and, if desired, the opportunity for
(h) The request is for reconsidera- the citation of a Code section. Once the an oral discussion by sending a letter to
tion of an adverse or partially adverse let- Service agrees that it made a mistake, the the Internal Revenue Service at the
ter ruling or a final adverse determination fee accompanying the request for the sup- applicable Post Office Box or other
letter, and the taxpayer submits arguments plemental letter ruling, determination let- address given in section 7. Both the
and authorities not submitted before the ter, etc. will be refunded. incoming envelope and the letter request-
original letter ruling or determination let- (c) The taxpayer requests and is ing such reconsideration should be promi-
ter was issued. granted relief under § 7805(b) in connec- nently marked “USER FEE RECONSID-
(2) The following are examples of tion with the revocation, in whole or in part, ERATION REQUEST.” No user fee is
situations in which the fee will be re- of a previously issued letter ruling, determi- required for these requests. The request
funded: nation letter, etc. The fee accompanying should be marked for the attention of:
(a) In a situation to which section the request for relief will be refunded.
10.02(1)(h) of this revenue procedure (d) In a situation to which section
does not apply, the taxpayer asserts that a 10.02(1)(d) of this revenue procedure ap-
letter ruling the taxpayer received cover- plied, the taxpayer requests reconsidera-
If the matter involves primarily: Mark for the attention of:

Employee plans letter ruling requests and all other employee plans Employee Plans Technical
matters handled by EP Technical
Exempt organizations letter ruling requests Exempt Organizations Technical
Employee plans determination letter requests Manager, EP Determinations Quality Assurance
Exempt organizations determination letter requests Manager, EO Determinations Quality Assurance
SECTION 12. EFFECT ON OTHER with the Paperwork Reduction Act (44 the user fee category and corresponding
DOCUMENTS U.S.C. 3507) under control number fee required to be paid with respect to
1545–1520. determination letter requests; to request
.01 Rev. Proc. 2000–8, 2000–1 I.R.B. An agency may not conduct or sponsor, reconsideration of the user fee charged by
230, is superseded. and a person is not required to respond to, the Service and, in connection with such a
SECTION 13. EFFECTIVE DATE a collection of information unless the col- request, to indicate whether an oral dis-
lection of information displays a valid cussion is desired. This information will
This revenue procedure is effective control number. be used to enable the Service to determine
January 15, 2001. The collections of information in this whether the taxpayer or exempt organiza-
revenue procedure are in sections tion is entitled to pay a reduced user fee,
SECTION 14. PAPERWORK 6.01(10)(c), 6.10(6)(a) and 6.11. This to ascertain whether reconsideration of
REDUCTION ACT information is required to substantiate that the user fee is being requested and, if it is
The collections of information con- a taxpayer or an exempt organization being requested, whether an oral discus-
tained in this revenue procedure have seeking to pay a reduced user fee with sion is requested. The collections of
been reviewed and approved by the Office respect to a request for a letter ruling is information are voluntary, to obtain a ben-
of Management and Budget in accordance entitled to pay the reduced fee; to identify efit. The likely respondents are individu-
2001–1 I.R.B. 249 January 2, 2001

als, business or other for-profit institu- B. Procedures Applicable to Employee Rev. Proc. 98–59, 1998–50 I.R.B. 8,
tions, nonprofit institutions, and small Plans Matters other than Actuarial provides guidance on obtaining opinion
businesses or organizations. Matters letters to drafters of prototype Roth IRAs,
The estimated total annual reporting and provides transitional relief for users
and/or recordkeeping burden is 300 Rev. Proc. 75–26, 1975–1 C.B. 722, of Roth IRAs that have not been approved
hours. sets forth the general procedures of the by the Internal Revenue Service.
The estimated annual burden per Internal Revenue Service for the process- Rev. Proc. 2000–20, 2000–6 I.R.B.
respondent/recordkeeper varies from ing of applications for exemption under
553, revises and combines the Service’s
one hour to ten hours, depending on § 4975(c)(2) of the Code.
master and prototype (M&P) and
individual circumstances, with an esti- Rev. Proc. 87–50, 1987–2 C.B. 647, as
regional prototype programs into a uni-
mated average of three hours. The esti- modified by Rev. Proc. 91–44 and Rev.
fied program for the pre-approval of
mated number of respondents and/or Proc. 92–38, sets forth the procedures of
pension, profit-sharing and annuity
recordkeepers is 90 (requests for the Service relating to the issuance of rul-
plans.
reduced fees) and 10 (requests for recon- ings and opinion letters with respect to the
Rev. Proc. 2001–6, this Bulletin, pro-
sideration of fee). establishment of individual retirement
vides procedures for issuing determina-
The estimated annual frequency of accounts and annuities (IRAs) under §
tion letters on the qualified status of
responses is on occasion. 408, the entitlement to exemption of relat-
employee plans under §§ 401(a), 403(a),
Books or records relating to a collec- ed trusts or custodial accounts under §
409, and 4975(e)(7).
tion of information must be retained as 408(e), and the acceptability of the form
long as their contents may become mate- of prototype simplified employee pension C. Employee Plans Actuarial Matters
rial in the administration of any internal (SEP) agreements under §§ 408(k) and
Rev. Proc. 79–61, 1979–2 C.B. 575,
revenue law. Generally tax returns and 415.
outlines the procedure by which a plan
tax return information are confidential, Rev. Proc. 92–24, 1992–1 C.B. 739,
administrator or plan sponsor may request
as required by 26 U.S.C. 6103. provides procedures for requesting deter-
mination letters on the effect on a plan’s and obtain approval for an extension of an
DRAFTING INFORMATION qualified status under § 401(a) of the amortization period in accordance with §
Code of plan language that permits, pur- 412(e) of the Code and § 304(a) of
The principal author of this revenue ERISA.
suant to § 420, the transfer of assets in a
procedure is Luis O. Ortiz of Employee Rev. Proc. 79–62, 1979–2 C.B. 576,
defined benefit plan to a health benefits
Plans, Tax Exempt and Government outlines the procedure by which a plan
account described in § 401(h).
Entities Division. For further information sponsor or administrator may request a
Rev. Proc. 92–38, 1992–1 C.B. 859,
regarding this revenue procedure, contact determination that a plan amendment is
provides notice that individual retirement
the Employee Plans telephone assistance reasonable and provides for only de min-
arrangement trusts, custodial account
service between the hours of 1:30 and imis increases in plan liabilities in accor-
agreements, and annuity contracts must
3:30 p.m., Eastern Standard Time, Mon- dance with § 412(f)(2)(A) of the Code and
be amended to provide for the required
day through Thursday, at (202) 283-9516 § 304(b)(2)(A) of ERISA.
distribution rules in § 408(a)(6) or (b)(3).
or (202) 283-9517 (not toll-free calls). Mr. Rev. Proc. 90–49, 1990–2 C.B. 620,
In addition, Rev. Proc. 92–38 modifies the
Ortiz’ telephone number is (202) 283- modifies and replaces Rev. Proc. 89–35,
guidance in Rev. Proc. 87–50 with regard
9652 (not a toll-free call). For exempt 1989–1 C.B. 917, in order to extend the
to opinion letters issued to sponsoring
organization matters, please contact Ms. effective date to contributions made for
organizations, including mass submitters
Susan L. Paul at (202) 283-8959 (not a plan years beginning after December 31,
and sponsors of prototype IRAs.
toll-free call). 1989, to change the deadline for request-
Rev. Proc. 93–41, 1993–2 C.B. 536,
APPENDIX sets forth the procedures of the Service ing rulings under the revenue procedure,
relating to the issuance of an administra- to revise the information requirements for
Following is a list of revenue procedures tive scrutiny determination as to whether a ruling request made under the revenue
requiring payment of a user fee or an a separate line of business satisfies the procedure, to furnish a worksheet for
administrative scrutiny determination requirement of administrative scrutiny actuarial computations, and to provide a
within the meaning of § 1.414(r)–6. special rule under which certain de min-
user fee.
Rev. Proc. 97–29, 1997–1 C.B. 698, imis nondeductible employer contribu-
describes model amendments for SIM- tions to a qualified defined benefit plan
A. Procedures applicable to both
PLE IRAs; guidance to drafters of proto- may be returned to the taxpayer without a
Employee Plans and Exempt
type SIMPLE IRAs on obtaining opinion formal ruling or disallowance from the
Organizations
letters; permissive amendments to spon- Service.
Rev. Proc. 2001–4, this bulletin, pro- sors of nonSIMPLE IRAs; the opening of Rev. Proc. 94–41, 1994–1 C.B. 711, sets
vides procedures for issuing letter rulings, a prototype program for SIMPLE IRA forth procedures for requesting waivers of
information letters, etc. on matters relat- Plans; and transitional relief for users of the minimum funding standard described
ing to matters under the jurisdiction of the SIMPLE IRAs and SIMPLE IRA Plans in § 412(d) and the issuance of such
Commissioner, Tax Exempt and Govern- that have not been approved by the waivers by the Commissioner, Tax Exempt
ment Entities Division. Service. and Government Entities Division.
January 2, 2001 250 2001–1 I.R.B.
Rev. Proc. 94–42, 1994–1 C.B. 717, D. Procedures Applicable to Exempt Rev. Proc. 90–27, 1990–1 C.B. 514,
supersedes Rev. Proc. 79–18, 1979–1 C.B. Organizations Matters Only sets forth revised procedures with regard
525, and Rev. Rul. 79–215, 1979–2 C.B. to applications for recognition of exemp-
190, and sets forth a procedure for obtain- Rev. Proc. 80–27, 1980–1 C.B. 677, tion from federal income tax under §§ 501
ing approval of an amendment to a quali- provides procedures under which recogni- and 521.
fied plan that, under § 412(c)(8), reduces tion of exemption from federal income tax
the accrued benefits of plan participants. under § 501(c) may be obtained on a
Rev. Proc. 2000–41, 2000–42 IRB 371, group basis for subordinate organizations
sets forth the procedure by which a plan affiliated with and under the general
administrator or plan sponsor may obtain supervision or control of a central organi-
approval of the Secretary of the Treasury zation. This procedure relieves each of
for a change in funding method as provid- the subordinates covered by a group
ed by § 412(c)(5) of the Code and exemption letter from filing its own appli-
§ 302(c)(5) of ERISA. cation for recognition of exemption.
2001–1 I.R.B. 251 January 2, 2001

Part IV. Items of General Interest
Cumulative List of this announcement is to inform potential ganization that were the basis for the re-
Announcements Relating to donors to these organizations of the pro- vocation. This protection also applies
Section 7428(c) Validation of tection under 7428(c) for certain contribu- (but without limitation as to amount) to
Certain Contributions Made tions made during the litigation period. organizations described in section
Protection under section 7428(c) of the 170(c)(2) which are exempt from tax
During Pendency of Declaratory
Code begins on the date that the notice of under section 501(a). If the organization
Judgment Proceedings from
revocation is published in the Internal ultimately prevails in its declaratory judg-
January 1, 2000 through Revenue Bulletin and ends on the date on ment suit, deductibility of contributions
December 31, 2000. which a court first determines that an or- would be subject to the normal limitations
The following is a cumulative listing of ganization is not described in section set forth under section 170.
names of organizations that are presently 170(c)(2), as more particularly set forth in
challenging, under section 7428 of the In- section 7428(c)(1). In the case of individ- I. The organizations listed below
ternal Revenue Code, the revocation of ual contributors, the maximum amount of continue to be involved in pending
their status as organizations entitled to re- contributions protected during this period declaratory judgment suits under section
ceive deductible contributions in declara- is limited to $1,000.00, with a husband 7428 of the Code, challenging revocation
tory judgment suits in the Tax Court, the and wife being treated as one contributor. of their status as eligible donees under
United States District Court for the Dis- This protection is not extended to any in- section 170(c)(2). Protection under
trict of Columbia, or the United States dividual who was responsible, in whole or section 7428(c) begins on the date
Court of Federal Claims. The purpose of in part, for the acts or omissions of the or- indicated.
American Heart Foundation Des Moines, IA

(October 12, 1999)
Anclote Psychiatric Center, Inc. Tarpon Springs, FL

(January 27, 1992)
Fountain of Life, Inc. Greensboro, NC

(March 2, 1998)
Great Plains Health Alliance, Inc. Phillipsburg, KS

(July 6, 1998)
ICH Health Plans, Inc. Salt Lake City, UT

(October 12, 1999)
Abraham Lincoln Opportunity Foundation Denver, CO

(April 5, 1999)
Music Square Church Van Buren, AR

(August 5, 1996)
Sta-Home Health Agency, Inc. Jackson, MS

(October 12, 1999)
Sta-Home Home Health Agency, Inc. of Forest, Jackson, MS

Mississippi
(October 12, 1999)
Sta-Home Health Agency, Inc. of Grenada, Jackson, MS

Mississippi
(October 12, 1999)
Don Stewart Association Phoenix, AZ

(July 21, 1997)
January 2, 2001 252 2001–1 I.R.B.

II. The organizations listed below have timely filed declaratory judgment suits under section 7428 of the Code during 2000.
Protection under section 7428(c) begins on the date indicated.
Living Truth Ministries Austin, TX

(August 28, 2000)
Program to Aid Drug Abusers, Inc. Lakeland, FL

(June 26, 2000)
III. The organizations listed below are no longer described in section 170(c)(2) and are not recognized as exempt under section
501(c)(3) of the Code.
Branch Ministries, Inc. d/b/a The Church Binghampton, NY

at Pierce Creek
Lenox Institute of Water Technology, Inc. Lenox, MA
IV. The organization listed below continues to be described in section 170(c)(2) and section 501(c)(3) which is exempt from tax
under section 501(a).
Oriana House Akron, OH
V. This announcement serves notice to donors that on November 23, 1999, the United States Court for the District of Columbia
entered a Stipulation of Dismissal in response to the parties’ request. By entering the Stipulation, the Court Agreed that the organi-
zation listed below is not an organization recognized as tax exempt under section 501(a) of the Internal Revenue Code and is not
described in sections 170(c)(2) and 501(c)(3) retroactive to January 1, 1991. The organization listed below reapplied to the Service
for recognition of exempt status, and the Service has recognized the organization as tax exempt under section 501(a) and as an orga-
nization described in sections 170(c)(2) and 501(c)(3) effective January 1, 1997.
The Freedom Alliance Dulles, VA
VI. This announcement serves notice to donors that on October 16, 2000, the United States Tax Court entered a decision document
pursuant to an agreement of the parties regarding the organization listed below. Pursuant to the decision, the organization is not rec-
ognized as tax exempt under section 501(c)(3) of the Internal Revenue Code for 1989. However, the organization is recognized as
exempt under sections 501(a) and 501(c)(3) for years after 1989.
Larry Lea Ministries Sherman, TX
VII. This announcement serves notice to donors that on May 16, 2000, the Court of Federal Claims entered an Order of Dismissal
in response to the parties’ Stipulation for Entry of Judgment. The Court ordered and agreed that the organization listed below is not
an organization described under sections 170(c)(2) and 501(c)(3) of the Internal Revenue Code and is not recognized as exempt
under section 501(a) for the years beginning June 1, 1979 and June 1, 1980. The Court further agreed that the organization listed
below is an organization described in sections 170(c)(2) and 501(c)(3) and is recognized as exempt under section 501(a) beginning
June 1, 1981.
St. Matthew Publishing, Inc. Los Angeles, CA
VIII. This announcement serves notice to donors that on April 13, 2000, the United States Tax Court entered a Decision accepting
the agreement of the parties that the exempt status of the organization listed below is retroactively revoked effective January 1, 1986.
Further, by letter dated April 7, 2000, the Commissioner has recognized the organization listed below as an exempt organization
described in sections 170(c)(2) and 501(c)(3) for periods of time on and after January 1, 1990.
United Cancer Council, Inc. Indianapolis, IN
2001–1 I.R.B. 253 January 2, 2001

Notice of Disposition of Notice of Disposition of
Declaratory Judgment Declaratory Judgment
Proceedings Under Section 7428 Proceedings Under Section 7428
This announcement serves notice to This announcement serves notice to
donors that on May 12, 2000, the Court of donors that on October 16, 2000, the
Appeals for the District of Columbia af- United States Tax Court entered a deci-
firmed the District Court opinion in which sion document pursuant to an agreement
the Service’s revocation of the exempt of the parties regarding the organization
status of the organization listed below listed below. Pursuant to the decision, the
was upheld. The Courts agreed with the organization is not recognized as a tax ex-
Service that the organization listed below empt under section 501(c)(3) of the Inter-
is not an organization recognized as tax nal Revenue Code for 1989. However,
exempt under section 501(a) of the Inter- the organization is recognized as exempt
nal Revenue Code and is not described in under sections 501(a) and 501(c)(3) for
section 501 (c) (3) effective January 1, years after 1989.
1992.
Larry Lea Ministries
Branch Ministries, Inc. d/b/a The Church Sherman, TX
at Pierce Creek
Binghampton, NY
January 2, 2001 254 2001–1 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures plies to both A and B, the prior ruling is new ruling does more than restate the
(hereinafter referred to as “rulings”) modified because it corrects a published substance of a prior ruling, a combination
that have an effect on previous rulings position. (Compare with amplified and of terms is used. For example, modified
use the following defined terms to de- clarified, above). and superseded describes a situation
scribe the effect: Obsoleted describes a previously pub- where the substance of a previously pub-
Amplified describes a situation where lished ruling that is not considered deter- lished ruling is being changed in part and
no change is being made in a prior pub- minative with respect to future transac- is continued without change in part and it
lished position, but the prior position is tions. This term is most commonly used is desired to restate the valid portion of
being extended to apply to a variation of in a ruling that lists previously published the previously published ruling in a new
the fact situation set forth therein. Thus, rulings that are obsoleted because of ruling that is self contained. In this case
if an earlier ruling held that a principle changes in law or regulations. A ruling the previously published ruling is first
applied to A, and the new ruling holds may also be obsoleted because the sub- modified and then, as modified, is super-
that the same principle also applies to B, stance has been included in regulations seded.
the earlier ruling is amplified. (Compare subsequently adopted. Supplemented is used in situations in
with modified, below). Revoked describes situations where the which a list, such as a list of the names of
Clarified is used in those instances position in the previously published rul- countries, is published in a ruling and
where the language in a prior ruling is ing is not correct and the correct position that list is expanded by adding further
being made clear because the language is being stated in the new ruling. names in subsequent rulings. After the
has caused, or may cause, some confu- Superseded describes a situation where original ruling has been supplemented
sion. It is not used where a position in a the new ruling does nothing more than several times, a new ruling may be pub-
prior ruling is being changed. restate the substance and situation of a lished that includes the list in the original
Distinguished describes a situation previously published ruling (or rulings). ruling and the additions, and supersedes
where a ruling mentions a previously Thus, the term is used to republish under all prior rulings in the series.
published ruling and points out an essen- the 1986 Code and regulations the same Suspended is used in rare situations to
tial difference between them. position published under the 1939 Code show that the previous published rulings
Modified is used where the substance and regulations. The term is also used will not be applied pending some future
of a previously published position is when it is desired to republish in a single action such as the issuance of new or
being changed. Thus, if a prior ruling ruling a series of situations, names, etc., amended regulations, the outcome of
held that a principle applied to A but not that were previously published over a pe- cases in litigation, or the outcome of a
to B, and the new ruling holds that it ap- riod of time in separate rulings. If the Service study.
Abbreviations E.O.—Executive Order.

ER—Employer.
PHC—Personal Holding Company.
PO—Possession of the U.S.
The following abbreviations in current use and for- ERISA—Employee Retirement Income Security Act. PR—Partner.
merly used will appear in material published in the
Bulletin. EX—Executor. PRS—Partnership.
F—Fiduciary. PTE—Prohibited Transaction Exemption.
A—Individual.
FC—Foreign Country. Pub. L.—Public Law.
Acq.—Acquiescence.
FICA—Federal Insurance Contributions Act. REIT—Real Estate Investment Trust.
B—Individual.
FISC—Foreign International Sales Company. Rev. Proc.—Revenue Procedure.
BE—Beneficiary.
FPH—Foreign Personal Holding Company. Rev. Rul.—Revenue Ruling.
BK—Bank.
F.R.—Federal Register. S—Subsidiary.
B.T.A.—Board of Tax Appeals.
FUTA—Federal Unemployment Tax Act. S.P.R.—Statements of Procedural Rules.
C—Individual.
FX—Foreign Corporation. Stat.—Statutes at Large.
C.B.—Cumulative Bulletin.
G.C.M.—Chief Counsel’s Memorandum. T—Target Corporation.
CFR—Code of Federal Regulations.
GE—Grantee. T.C.—Tax Court.
CI—City.
GP—General Partner. T.D.—Treasury Decision.
COOP—Cooperative.
GR—Grantor. TFE—Transferee.
Ct.D.—Court Decision.
IC—Insurance Company. TFR—Transferor.
CY—County.
D—Decedent. I.R.B.—Internal Revenue Bulletin. T.I.R.—Technical Information Release.
DC—Dummy Corporation. LE—Lessee. TP—Taxpayer.
DE—Donee. LP—Limited Partner. TR—Trust.
Del. Order—Delegation Order. LR—Lessor. TT—Trustee.
DISC—Domestic International Sales Corporation. M—Minor. U.S.C.—United States Code.
DR—Donor. Nonacq.—Nonacquiescence. X—Corporation.
E—Estate. O—Organization. Y—Corporation.
EE—Employee. P—Parent Corporation. Z—Corporation.
2001–1 I.R.B. i January 2, 2001

Numerical Finding List1 Notices—Continued: Revenue Procedures—Continued:
2000–43, 2000–35 I.R.B. 209 2000–47, 2000–46 I.R.B. 482
Bulletins 2000–27 through 2000–52 2000–44, 2000–36 I.R.B. 255 2000–48, 2000–49 I.R.B. 570
2000–45, 2000–36 I.R.B. 256 2000–49, 2000–47 I.R.B. 491
Announcements: 2000–46, 2000–37 I.R.B. 265 2000–50, 2000–52 I.R.B. 601
2000–57, 2000–28 I.R.B. 115 2000–47, 2000–46 I.R.B. 480
2000–48, 2000–37 I.R.B. 265 Revenue Rulings:
2000–58, 2000–30 I.R.B. 135
2000–59, 2000–29 I.R.B. 120 2000–49, 2000–37 I.R.B. 266 2000–32, 2000–27 I.R.B. 1
2000–60, 2000–31 I.R.B. 149 2000–50, 2000–38 I.R.B. 291 2000–33, 2000–31 I.R.B. 142
2000–61, 2000–30 I.R.B. 136 2000–51, 2000–38 I.R.B. 291 2000–34, 2000–29 I.R.B. 116
2000–62, 2000–30 I.R.B. 137 2000–52, 2000–38 I.R.B. 292 2000–35, 2000–31 I.R.B. 138
2000–63, 2000–31 I.R.B. 149 2000–53, 2000–38 I.R.B. 293 2000–36, 2000–31 I.R.B. 140
2000–64, 2000–31 I.R.B. 149 2000–54, 2000–42 I.R.B. 356 2000–37, 2000–32 I.R.B. 156
2000–65, 2000–31 I.R.B. 150 2000–55, 2000–43 I.R.B. 393 2000–38, 2000–32 I.R.B. 157
2000–66, 2000–32 I.R.B. 160 2000–56, 2000–43 I.R.B. 393 2000–39, 2000–34 I.R.B. 184
2000–67, 2000–32 I.R.B. 160 2000–57, 2000–43 I.R.B. 389 2000–40, 2000–35 I.R.B. 208
2000–68, 2000–32 I.R.B. 161 2000–58, 2000–47 I.R.B. 491 2000–41, 2000–36 I.R.B. 248
2000–69, 2000–33 I.R.B. 183 2000–59, 2000–48 I.R.B. 519 2000–42, 2000–39 I.R.B. 297
2000–70, 2000–34 I.R.B. 204 2000–60, 2000–49 I.R.B. 568 2000–43, 2000–41 I.R.B. 333
2000–71, 2000–44 I.R.B. 456 2000–61, 2000–49 I.R.B. 569 2000–44, 2000–41 I.R.B. 336
2000–72, 2000–35 I.R.B. 226 2000–62, 2000–51 I.R.B. 587 2000–45, 2000–41 I.R.B. 337
2000–73, 2000–35 I.R.B. 230 2000–63, 2000–51 I.R.B. 588 2000–46, 2000–41 I.R.B. 334
2000–74, 2000–35 I.R.B. 230 2000–64, 2000–51 I.R.B. 589 2000–47, 2000–37 I.R.B. 264
2000–75, 2000–37 I.R.B. 268 2000–65, 2000–52 I.R.B. 599 2000–48, 2000–42 I.R.B. 349
2000–76, 2000–36 I.R.B. 260 2000–66, 2000–52 I.R.B. 600 2000–49, 2000–44 I.R.B. 430
2000–77, 2000–36 I.R.B. 260 2000–50, 2000–45 I.R.B. 462
Proposed Regulations: 2000–51, 2000–46 I.R.B. 469
2000–78, 2000–43 I.R.B. 428
2000–79, 2000–39 I.R.B. 303 REG–209038–89, 2000–34 I.R.B. 191 2000–52, 2000–48 I.R.B. 516
2000–80, 2000–40 I.R.B. 320 REG–246249–96, 2000–44 I.R.B. 439 2000–53, 2000–47 I.R.B. 488
2000–81, 2000–41 I.R.B. 348 REG–105316–98, 2000–27 I.R.B. 98 2000–54, 2000–49 I.R.B. 566
2000–82, 2000–42 I.R.B. 385 REG–110311–98, 2000–36 I.R.B. 258 2000–55, 2000–52 I.R.B. 595
2000–83, 2000–41 I.R.B. 348 REG–103805–99, 2000–42 I.R.B. 376 2000–56, 2000–52 I.R.B. 598
2000–84, 2000–42 I.R.B. 385 REG–105235–99, 2000–44 I.R.B. 447 2000–57, 2000–50 I.R.B. 579
2000–85, 2000–43 I.R.B. 429 REG–116050–99, 2000–48 I.R.B. 520 2000–58, 2000–50 I.R.B. 578
2000–86, 2000–44 I.R.B. 456 REG–116495–99, 2000–33 I.R.B. 179 2000–59, 2000–52 I.R.B. 593
2000–87, 2000–44 I.R.B. 457 REG–103735–00, 2000–36 I.R.B. 258
REG–103736–00, 2000–36 I.R.B. 258 Social Security Contribution and Benefit Base;
2000–88, 2000–44 I.R.B. 460
REG–106511–00, 2000–45 I.R.B. 465 Domestic Employee Coverage Threshold:
2000–89, 2000–45 I.R.B. 467
2000–90, 2000–47 I.R.B. 515 REG–107279–00, 2000–51 I.R.B. 590 2000–52 I.R.B. 602
2000–91, 2000–46 I.R.B. 484 REG–108522–00, 2000–34 I.R.B. 187
2000–92, 2000–46 I.R.B. 486 REG–108553–00, 2000–44 I.R.B. 452 Tax Conventions:
2000–93, 2000–46 I.R.B. 487 REG–112502–00, 2000–40 I.R.B. 316 2000–46 I.R.B. 475
2000–94, 2000–47 I.R.B. 515 REG–114423–00, 2000–52 I.R.B. 604 Notice 2000–57, 2000–43 I.R.B. 389
2000–95, 2000–48 I.R.B. 556 REG–114697–00, 2000–43 I.R.B. 421 Rev. Rul. 2000–59, 2000–52 I.R.B. 593
2000–96, 2000–48 I.R.B. 556
2000–97, 2000–48 I.R.B. 557 Railroad Retirement Quarterly Rate: Treasury Decisions:
2000–98, 2000–50 I.R.B. 584 2000–28 I.R.B. 112 8886, 2000–27 I.R.B. 3
2000–99, 2000–51 I.R.B. 591 2000–29 I.R.B. 117 8888, 2000–27 I.R.B. 3
2000–100, 2000–51 I.R.B. 591 2000–42 I.R.B. 354 8889, 2000–30 I.R.B. 124
2000–101, 2000–52 I.R.B. 604 8890, 2000–30 I.R.B. 122
2000–102, 2000–52 I.R.B. 605 Revenue Procedures: 8891, 2000–32 I.R.B. 152
2000–28, 2000–27 I.R.B. 60 8892, 2000–32 I.R.B. 158
Court Decisions: 2000–29, 2000–28 I.R.B. 113 8893, 2000–31 I.R.B. 143
2068, 2000–28 I.R.B. 109 2000–30, 2000–28 I.R.B. 113 8894, 2000–33 I.R.B. 162
2000–31, 2000–31 I.R.B. 146 8895, 2000–40 I.R.B. 304
Delegation Orders: 2000–32, 2000–33 I.R.B. 172 8896, 2000–36 I.R.B. 249
No. 5, 2000–51 I.R.B. 587 2000–33, 2000–36 I.R.B. 257 8897, 2000–36 I.R.B. 234
No. 264, 2000–51 I.R.B. 587 2000–34, 2000–34 I.R.B. 186 8898, 2000–38 I.R.B. 276
2000–35, 2000–35 I.R.B. 211 8899, 2000–38 I.R.B. 288
Notices: 2000–36, 2000–37 I.R.B. 267 8900, 2000–38 I.R.B. 279
2000–33, 2000–27 I.R.B. 97 2000–37, 2000–40 I.R.B. 308 8901, 2000–38 I.R.B. 272
2000–34, 2000–33 I.R.B. 172 2000–38, 2000–40 I.R.B. 310 8902, 2000–41 I.R.B. 323
2000–35, 2000–29 I.R.B. 118 2000–39, 2000–41 I.R.B. 340 8903, 2000–42 I.R.B. 352
2000–36, 2000–33 I.R.B. 173 2000–40, 2000–42 I.R.B. 357 8904, 2000–42 I.R.B. 350
2000–37, 2000–29 I.R.B. 118 2000–41, 2000–42 I.R.B. 371 8905, 2000–44 I.R.B. 435
2000–38, 2000–33 I.R.B. 174 2000–42, 2000–43 I.R.B. 394 8906, 2000–46 I.R.B. 470
2000–39, 2000–30 I.R.B. 132 2000–43, 2000–43 I.R.B. 404 8907, 2000–49 I.R.B. 558
2000–40, 2000–30 I.R.B. 134 2000–44, 2000–43 I.R.B. 409 8908, 2000–51 I.R.B. 585
2000–41, 2000–33 I.R.B. 177 2000–45, 2000–43 I.R.B. 417 8909, 2000–52 I.R.B. 596
2000–42, 2000–39 I.R.B. 302 2000–46, 2000–44 I.R.B. 438
1 A cumulative list of all revenue rulings, revenue

procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 2000–1 through 2000–26
is in Internal Revenue Bulletin 2000–27, dated July
3, 2000.
January 2, 2001 ii 2001–1 I.R.B.

Finding List of Current Actions on Proposed Regulations—Continued Revenue Procedures—Continued
Previously Published Items1 IA–38–93 2000–4
Withdrawn by Modified by
Bulletins 2000–27 through 2000–52 Announcement 2000–68, 2000–32 I.R.B. 161 Rev. Proc. 2000–41, 2000–42 I.R.B. 371
REG–107644–98 2000–9
Actions Relating to Court Decisions: Corrected by Superseded by
1999–40 I.R.B. page following Introduction Announcement 2000–66, 2000–32 I.R.B. 160 Rev. Proc. 2000–39, 2000–41 I.R.B. 340
Corrected footnotes by REG–117162–99
Announcement 2000–102, 2000–52 I.R.B. 605 Revenue Rulings:
Corrected by
Announcement 2000–92, 2000–46 I.R.B. 486 99–49
Notices: Supplemented and superseded by
87–76 REG–108522–00 Rev. Rul. 2000–56, 2000–52 I.R.B. 598
Obsoleted by Corrected by
T.D. 8897, 2000–36 I.R.B. 234 Supplemented and superseded by
88–24 Revenue Procedures: Rev. Rul. 2000–55, 2000–52 I.R.B. 595
Obsoleted by 69–21
T.D. 8897, 2000–36 I.R.B. 234 Treasury Decisions:
Superseded by
88–86 Rev. Proc. 2000–50, 2000–52 I.R.B. 601 8510
Obsoleted by Withdrawn by
78–37 T.D. 8892, 2000–32 I.R.B. 158
Section V, T.D. 8897, 2000–36 I.R.B. 234 Superseded by
97–4 Rev. Proc. 2000–41, 2000–42 I.R.B. 371 8873
Superseded by Corrected by
88–23 Announcement 2000–74, 2000–35 I.R.B. 230
Notice 2000–58, 2000–47 I.R.B. 491 Superseded by
97–73 Rev. Proc. 2000–35, 2000–35 I.R.B. 211 8883
Modified by Corrected by
Notice 2000–62, 2000–51 I.R.B. 587 Modified by
98–7 Rev. Proc. 2000–50, 2000–52 I.R.B. 601 8884
98–46 Rev. Proc. 2000–40, 2000–42 I.R.B. 357 8892
Notice 2000–62, 2000–51 I.R.B. 587 Modified and superseded by
98–54 Rev. Proc. 2000–31, 2000–31 I.R.B. 146 8897
Notice 2000–62, 2000–51 I.R.B. 587 Modified and superseded by
98–59 Rev. Proc. 2000–31, 2000–31 I.R.B. 146 8899
Notice 2000–62, 2000–51 I.R.B. 587 Modified by
99–37 Rev. Proc. 2000–29, 2000–28 I.R.B. 113
Modified by 99–34
2000–48 Rev. Proc. 2000–28, 2000–27 I.R.B. 60
Superseded by 99–38
Rev. Proc. 2000–39, 2000–41 I.R.B. 340 Superseded by
Proposed Regulations: Rev. Proc. 2000–48, 2000–49 I.R.B. 570
LR–62–84 99–46
Withdrawn by Superseded by
REG–246249–96, 2000–44 I.R.B. 439 Rev. Proc. 2000–49, 2000–47 I.R.B. 491
LR–97–79 99–49
Partial withdrawal by Modified and amplified by
REG–103805–99, 2000–42 I.R.B. 376 Rev. Proc. 2000–38, 2000–40 I.R.B. 310
Modified by
REG–209038–89 Rev. Proc. 2000–50, 2000–52 I.R.B. 601
Corrected by
Amplified by
FI–42–90 Rev. Proc. 2000–46, 2000–44 I.R.B. 438
Withdrawn by Rev. Proc. 2000–47, 2000–46 I.R.B. 482
Announcement 2000–63, 2000–31 I.R.B. 149
1 A cumulative finding list of previously published

items in Internal Revenue Bulletins 2000–1 through
2000–26 is in Internal Revenue Bulletin 2000–27,
dated July 3, 2000.
2001–1 I.R.B. iii January 2, 2001

Index EMPLOYEE PLANS — EMPLOYEE PLANS —
Internal Revenue Bulletins Continued Continued
2000–27 Through 2000–52 August 2000 (Notice 46) 37, 265 26 CFR 35.3405–1, correction; new
For a cumulative index of items published September 2000 (Notice 42) 39, 302 technologies in retirement plans
in the Internal Revenue Bulletins 2000–1 October 2000 (Notice 55) 43, 393 (Ann 74) 35, 230
through 2000–26, see Internal Revenue November 2000 (Notice 59) 48, 519
Bulletin 2000–27, dated July 3, 2000. Letter rulings, determination letters, and
information letters issued by the Office EMPLOYMENT TAX
The abbreviation and number in paren-
of Chief Counsel (Notice 35) 29, 118
thesis following the index entry refer to
Limitations on contributions and benefits Comprehensive case resolution program
the specific item; numbers in roman and
under section 415, cost-of-living adjust- (Notice 43) 35, 209
italic type following the parenthesis refer
ments (Notice 66) 52, 600 Delinquent tax, levy on wages, salary,
to the Internal Revenue Bulletin in which
Loans to plan participants (TD 8894) 33, and other income, exempt amount
the item may be found and the page
162; (REG–116495–99) 33, 179 tables (Notice 47) 46, 480
number on which it appears.
Minimum funding standards: Deposits, de minimus rule (TD 8909) 52,
Key to Abbreviations: Change in funding method, by plan 596; (REG–114423–00) 52, 604
Ann Announcement administrators, approval Electronic filing, magnetic media, Form
CD Court Decision procedures (RP 41) 42, 371 8027, Employer’s Annual Information
DO Delegation Order Selected funding methods, changes to, Return of Tip Income and Allocated
EO Executive Order approved (RP 40) 42, 357 Tips, specifications (RP 49) 47, 491
PL Public Law New technologies in retirement plans, Electronically filed information returns,
PTE Prohibited Transaction notices and consents (Ann 74) due dates of (TD 8895) 40, 304
Exemption 35, 230 Form W-2, new code V for box 12 for
RP Revenue Procedure Nonqualified deferred compensation: 2001 (Ann 97) 48, 557
RR Revenue Ruling Cash or deferred arrangements (RR Information reporting, payments on
SPR Statement of Procedural 33) 31, 142 behalf of another person, to joint pay-
Rules State and local governments or tax- ees, and payments of gross proceeds
TC Tax Convention exempt organizations (Notice 38) from sales involving investment advis-
TD Treasury Decision 33, 174 ers (REG–246249–96) 44, 439
TDO Treasury Department Order Proposed Regulations: Nonqualified deferred compensation, state
26 CFR 1.72(p)–1, amended; loans to and local governments or tax-exempt
plan participants (REG–116495–99) organizations (Notice 38) 33, 174
EMPLOYEE PLANS 33, 179 Proposed Regulations:
26 CFR 1.125–1, –2, –4, corrected; tax 26 CFR 31.3406–0, amended;
Accrued benefits, involuntary cash-out of treatment of cafeteria plans (Ann 31.3406(a)–2, revised; 31.3406(a)–4,
(TD 8891) 32, 152 92) 46, 486 amended; 31.3406(b)(3)–2, amended;
Cafeteria plans, treatment of (Ann 65) 26 CFR 1.401(a)(4)–8, revised; 31.3406(d)–4, amended;
31, 150; (Ann 92) 46, 486 1.401(a)(4)–9, amended; defined 31.3406(h)–1, –2, amended; pay-
Covered compensation tables, permitted contribution retirement plans, ments on behalf of another person, to
disparity (RR 53) 47, 488 nondiscrimination requirements joint payees, and payments of gross
Defined contribution retirement plans, (REG–114697–00) 43, 421 proceeds from sales involving invest-
nondiscrimination requirements Protected benefits, direct rollover (RR ment advisers (REG–246249–96) 44,
(REG–114697–00) 43, 421 36) 31, 140 439
Determination letters: Prototype plans, automatic enrollment 26 CFR 31.6302–1(f)(4), revised;
Amendments by plan sponsors features (Ann 60) 31, 149 deposits, de minimis rule
(Ann 71) 44, 456 Qualified retirement plans, optional (REG–114423–00) 52, 604
GUST opinion and advisory letters, forms of benefit (TD 8900) 38, 279 Railroad retirement, rate determination,
application deadline (Ann 99) 51, 591 Regulations: quarterly:
Volume submitter plans (Ann 77) 36, 26 CFR 1.72–17A, amended; April 1, 2000, 28, 112
260 1.72(p)–1, added; loans to plan par- July 1, 2000, 29, 117
Elective deferrals, section 403(b) plans ticipants (TD 8894) 33, 162 October 1, 2000, 42, 354
(RR 35) 31, 138 26 CFR 1.411(d)–4, amended; quali- Regulations:
Form 1099–R, 2001, distribution codes fied retirement plans, optional forms 26 CFR 31.3402(q)–1, revised;
for IRAs (Ann 86) 44, 456 of benefit (TD 8900) 38, 279 31.6053–3, revised; 31.6071(a)–1,
Full funding limitations, weighted aver- 26 CFR 31.3121(b)(7)–2, amended; revised; electronically filed informa-
age interest rate for: accrued benefits, involuntary cash- tion returns, due dates of (TD 8895)
July 2000 (Notice 40) 30, 134 out of (TD 8891) 32, 152 40, 304
January 2, 2001 iv 2001–1 I.R.B.

EMPLOYMENT TAX — EXEMPT ORGANIZA- INCOME TAX —
Continued TIONS—Continued Continued
26 CFR 31.6302–1(f)(4), added; (Notice 41) 33, 177 Actions on decisions, footnotes; correc-
31.6302–1T, added; deposits, de Internet usage (Ann 84) 42, 385 tion (Ann 102) 52, 605
minimis rule (TD 8909) 52, 596 Letter rulings, determination letters, and Actuarial tables for valuation of annu-
Social security contribution and benefit information letters issued by the Office ities, interests for life or term of years,
base; domestic employee coverage of Chief Counsel (Notice 35) 29, 118 and remainder or reversionary interests
threshold for 2001, 52, 602 List of organizations classified as private (TD 8886) 27, 3
foundations (Ann 61) 30, 136; (Ann Appeals:
67) 32, 160; (Ann 70) 34, 204; (Ann Ex parte communication prohibition
ESTATE TAX 75) 37, 268; (Ann 79) 39, 303; (Ann (RP 43) 43, 404
87) 44, 457; (Ann 91) 46, 484; (Ann Toll-free numbers (Ann 80) 40, 320
Actuarial tables for valuation of annu- 98) 50, 584 Application of the anti-churning rules for
ities, interests for life or term of years, Political organizations: amortization of intangibles in partner-
and remainder or reversionary interests Contributions and expenditures, Form ships (TD 8907) 49, 558
(TD 8886) 27, 3 8872 (Notice 41) 33, 177 Authorized placement agency, definition
Charitable remainder trusts sample Disclosure, notice, and reporting amended (REG–107279–00) 51, 590
forms, revision (Notice 37) 29, 118 requirements (RR 49) 44, 430 Bad debt reserves of thrift institutions
Form 706, estate tax return, automatic Notice of section 527 status, Form (Ann 63) 31, 149
6-month extension of time to file 8871 (Notice 36) 33, 173 Base period T-bill rate, 2000 (RR 52) 48,
(REG–106511–00) 45, 465 Proposed revenue ruling on reporting 516
Proposed Regulations: requirements (Ann 72) 35, 226 Business expenses, traveling expenses,
26 CFR 20.6075–1, revised; Revocations (Ann 62) 30, 137; (Ann 69) per diem allowances (RP 39) 41, 340
20.6081–1, revised; Form 706, 33, 183; (Ann 94) 47, 515 Capital gains look-thru provisions for the
estate tax return, automatic 6-month sale or exchange of interest in a pass-
extension of time to file thru entity; rules for dividing the hold-
(REG–106511–00) 45, 465 GIFT TAX ing period of a partnership interest
Regulations: (TD 8902) 41, 323
26 CFR 20.2031–0, –7, amended; Actuarial tables for valuation of annu- Capitalization, business expenses, farm-
20.2031–7T, removed; 20.7520–1, ities, interests for life or term of years, ing (Notice 45) 36, 256
amended; 20.7520–1T, removed; and remainder or reversionary interests Census Bureau; disclosure of return
actuarial tables for valuation of (TD 8886) 27, 3 information (TD 8908) 51, 585
annuities, interests for life or term Adequate disclosure, status of limitations Charitable remainder trusts sample
of years, and remainder or rever- (RP 34) 34, 186 forms, revision (Notice 37) 29, 118
sionary interests (TD 8886) 27, 3 Regulations: Claims for certain income tax convention
26 CFR 25.2512–0, –5, amended; benefits, guidance on (TD 8889) 30,
124
EXCISE TAX 25.2512–5T, removed; 25.7520–1,
amended; 25.7520–1T, removed; Collateralized debt obligations (CDOs),
actuarial tables for valuation of annu- reporting requirements (TD 8888) 27, 3
Taxable fuel, measurement of Comprehensive case resolution program
ities, interests for life or term of years,
(Notice 33) 27, 97 (Notice 43) 35, 209
and remainder or reversionary inter-
Taxable substances, polyether polyol, Computer software expenditures, tax
ests (TD 8886) 27, 3
determinations (Notice 54) 42, 356 treatment of (RP 50) 52, 601
26 CFR 25.2702–3, amended; special
valuation rules, grantor retained Consolidated returns:
EXEMPT annuity trust (GRAT) and unitrust Common parent, agent for sub-
sidiaries, tentative carryback adjust-
ORGANIZATIONS (GRUT) (TD 8899) 38, 288; correc-
tion (Ann 100) 51, 591 ments (REG–103805–99) 42, 376
Special valuation rules, grantor retained Limitations on the use of certain cred-
Forms: its (Ann 73) 35, 230
annuity trust (GRAT) and unitrust
8870, Information Return for Consumer Price Index (CPI) adjust-
(GRUT) (TD 8899) 38, 288; correc-
Transfers Associated With Certain ments:
tion (Ann 100) 51, 591
Personal Benefit Contracts (Ann Below-market loans under section
82) 42, 385 7872(g) for 2001 (RR 56) 52, 598
8871, Political Organization Notice of INCOME TAX Certain loans under section 1744A
Section 527 Status (Notice 36) 33, 173 for 2001 (RR 55) 52, 595
8872, Political Organization Report of Acquisition of corporate indebtedness Controlled foreign corporations
Contributions and Expenditures (RP 33) 36, 257 (REG–112502–00) 40, 316
2001–1 I.R.B. v January 2, 2001

INCOME TAX— INCOME TAX— INCOME TAX—
Continued Continued Continued
Corporate reorganizations, continuity of Exclusion of gain from the sale or Information reporting:
interest (TD 8898) 38, 276 exchange of a taxpayer’s principal res- Payments and reimbursements of qual-
Corporations: idence (REG–105235–99) 44, 447 ified tuition and related expenses
Corporate reorganizations, continuity Foreign sales corporations, Form 1120- (REG–105316–98) 27, 98
of interest (TD 8898) 38, 276 FSC, Schedule P (Notice 49) 37, 266 Payments on behalf of another person,
Corporate tax shelter, stock compensa- Foreign trusts: to joint payees, and payments of
tion (Notice 60) 49, 568 Transfers of: gross proceeds from sales involving
Disposition of stock in a taxable trans- Appreciated property to certain for- investment advisers
action (Ann 57) 28, 115 eign trusts (REG–108522–00) 34, (REG–246249–96) 44, 439
Credits: 187; correction (Ann 85) 43, 429 Information returns:
Earned income; preparer due diligence Property to trusts with U.S. benefi- Magnetic media filing requirements
(TD 8905) 44, 435 ciaries (REG–209038–89) 34, (REG–105316–98) 27, 98
Enhanced oil recovery credit, 2000 191; (Ann 96) 48, 556 Payments of tuition and interest on
inflation adjustment (Notice 51) 38, Forms: education loans (Notice 62) 51, 587
291 706, estate tax return, automatic 6- Institute on International Tax (Ann 93)
Low-income housing credit: month extension of time to file 46, 487; (Ann 90) 47, 515; (Ann 95)
Carryovers to qualified states, 2000 (REG–106511–00) 45, 465 48, 556
National Pool (RP 36) 37, 267 1040, e-file program (RP 31) 31, 146 Insurance companies:
Satisfactory bond; “bond factor” 1096, 1098, 1099, 5498, and W-2G, Differential earnings rate and recom-
amounts for the period July substitute forms specifications (RP puted differential earnings rate for
through September 2000 (RR 48) 28) 27, 60 mutual life insurance companies
42, 349 1099-R, 2001, distribution codes for (RR 37) 32, 156
Qualified fuel under section IRAs (Ann 86) 44, 456 Foreign companies, minimum effec-
29(c)(1)(C), solid synthetic fuel 1120-FSC, Schedule P, foreign sales tively connected net investment
from coal (RP 47) 46, 482 corporations (Notice 49) 37, 266 income (RP 32) 33, 172
Renewable electricity production cred- 8027, Employer’s Annual Information Loss payment patterns and discount
it, 2000 inflation adjustment (Notice Return of Tip Income and Allocated factors for the 2000 accident year
52) 38, 292 Tips (RP 49) 47, 491 (RP 44) 43, 409
Targeted Jobs Tax Credit, settlement 8869, Qualified Subchapter S Salvage discount factors for the 2000
initiative (Ann 58) 30, 135 Subsidiary Election, new form accident year (RP 45) 43, 417
Debt roll-ups, election to treat certain available (Ann 83) 41, 348 Interest:
debt substitutions as realization events 8870, Information Return for Transfers Investment:
(RP 29) 28, 113 Associated With Certain Personal Federal short-term, mid-term, and
Deductions, travel expenses, per diem Benefit Contracts (Ann 82) 42, 385 long-term rates for:
rates (Notice 48) 37, 265 8871, Political Organization Notice of July 2000 (RR 32) 27, 1
Delegation of authority: Section 527 Status (Notice 36) 33, 173 August 2000 (RR 38) 32, 157
Authority to act as Commissioner 8872, Political Organization Report of September 2000 (RR 41) 36, 248
(DO 5 [Rev. 18]) 51, 587 Contributions and Expenditures October 2000 (RR 45) 41, 337
Settlement offers and closing agree- (Notice 41) 33, 177 November 2000 (RR 50) 45, 462
ments under the Targeted Jobs Tax W-2, new code V for box 12 for 2001 December 2000 (RR 54) 49, 566
Credit initiative (DO 264) 51, 587 (Ann 97) 48, 557 Rates:
Depletion, applicable percentages, oil W-2, W-3; planned changes to (Ann Underpayments and overpay-
and gas production (Notice 50) 38, 76) 36, 260 ments, quarter beginning:
291 Fringe benefits, aircraft valuation formu- October 1, 2000 (RR 42) 39, 297
Distributor commissions (RP 38) 40, 310 la (RR 40) 35, 208 January 1, 2001 (RR 57) 50, 579
Dual consolidated loss, dual resident cor- Gross income, de minimis premiums, Inventory:
poration (RP 42) 43, 394 treatment of (RP 30) 28, 113 Dollar-value LIFO and inventory price
Earned income credit, preparer due dili- Guidance Priority List; public comments index computation (IPIC) methods
gence requirements (TD 8905) 44, 435 requested (Notice 63) 51, 588 (Ann 66) 32, 160
Electronic Filing: Individual retirement arrangements, LIFO:
Electronically filed information returned or recharacterized contribu- Price indexes, department stores,
returns, due dates of (TD 8895) tions, net income calculation (Notice for:
40, 304 39) 30, 132 May 2000 (RR 34) 29, 116
Refund anticipation loans (Notice 64) Industry Issue Resolution Pilot Program, June 2000 (RR 39) 34, 184
51, 589 LMSB (Notice 65) 52, 599 July 2000 (RR 47) 37, 264
January 2, 2001 vi 2001–1 I.R.B.

August 2000 (RR 46) 41, 334 –7, added; 1.958–1, –2, amended; Denmark treaty (Ann 59) 29, 120
September 2000 (RR 51) 46, 469 foreign trusts with U.S. beneficia- 1212, supplemental information on
October 2000 (RR 58) 50, 578 ries (REG–209038–89) 34, 191; short-term Treasury bills (Ann 64)
IRS e-file program: correction (Ann 96) 48, 556 31, 149
Balance due and refund anticipation 26 CFR 1.684–1, –2, –3, –4, –5, Qualified subchapter S subsidiaries, elec-
loans under section 7216, comments added; tax on transfers of appreciat- tion procedures (Notice 58) 47, 491
requested (Notice 64) 51, 589 ed property to foreign trusts and Qualified transportation fringes, distribu-
Participant obligations (RP 31) 31, 146 foreign estates (REG–108522–00) tion of transit passes (Ann 78) 43, 428
Letter rulings, determination letters, and 34, 187; correction (Ann 85) 43, Qualified zone academy bonds, guid-
information letters issued by the Office 429 ance (TD 8903) 42, 352
of Chief Counsel (Notice 35) 29, 118 26 CFR 1.702–1, amended; 1.952–1, Real estate mortgage investment con-
Like-kind exchanges, “parking” arrange- added; 1.954–1, –2, –3, –4, added; duits (REMICs), reporting require-
ments (RP 37) 40, 308 1.956–2, added; controlled foreign ments (TD 8888) 27, 3
Loss deductions, challenge of, Blue corporations (REG–112502–00) 40, Regulations:
Cross Blue Shield organizations 316 26 CFR 1.1(h)–1, added; 1.741–1,
(Notice 34) 33, 172 26 CFR 1.1502–77 redesignated as amended; 1.1223–3, added; capital
Marginal properties, oil and gas produc- 1.1502–77A; 1.1502–77, added; gains look-thru provisons for the
tion, depletion, applicable percentages 1.1502–77T(a) redesignated as sale or exchange of interest in a
(Notice 50) 38, 291 1.1502–77A(e); 1.1502–77T, pass-thru entity; rules for dividing
Model rabbi trust, contribution of parent removed; 1.1502–78, amended; con- the holding period of a partnership
stock (Notice 56) 43, 393 solidated returns, common parent, interest (TD 8902) 41, 323
Nonqualified perferred stock, exchanges agent for subsidiaries, tentative car- 26 CFR 1.110–1, added; 1.602.101,
and distributions (TD 8904) 42, 350 ryback adjustments amended; short-term leases, quali-
Optional standard mileage rates 2001 (REG–103805–99) 42, 376 fied lessee construction allowances
(RP 48) 49, 570 26 CFR 1.6011–4, amended; for (TD 8901) 38, 272
Partnerships: 301.6111–2, amended; 301.6112–1, 26 CFR 1.162–12, amended;
Addition to no-rule list (RP 46) 44, 438 amended; tax shelters, disclosure 1.263A–0, –1, amended;
Allocation of nonrecourse liabilities by rules, registration and list mainte- 1.263A–0T, removed; 1.263A–4,
a partnership (TD 8906) 46, 470 nance requirements, additional revised; 1.263A–4T, removed;
Transactions between partner and part- guidance of (REG–110311–98, 1.471–6, amended; uniform capital-
nership (RR 44) 41, 336 REG–103735–00, ization applied to farming business
Waiver request (Ann 101) 52, 604 REG–103736–00) 36, 258 (TD 8897) 36, 234; correction (Ann
Private foundations, organizations now 26 CFR 1.6041–1, –3, amended; 88) 44, 460
classified as (Ann 61) 30, 136; (Ann 1.6045–1, –2, amended; 1.6049–4, 26 CFR 1.170A–12, amended;
67) 32, 160; (Ann 70) 34, 204; (Ann revised; 5f.6045–1, removed; pay- 1.170A–12T, removed; 1.642(c)–6,
75) 37, 268; (Ann 79) 39, 303; (Ann ments on behalf of another person, amended; 1.642(c)–6T, removed;
87) 44, 457; (Ann 91) 46, 484; (Ann to joint payees, and payments of 1.664–4, amended; 1.664–4T,
98) 50, 584 gross proceeds from sales involving removed; 1.7520–1, amended;
Proposed Regulations: investment advisers 1.7520–1T, removed; actuarial
26 CFR 1.121–1, –2, –3, –4, revised; (REG–246249–96) 44, 439 tables for valuation of annuities,
1.121–5, removed; 1.1398–3, added; 26 CFR 1.6050S–0, –1, –2, added; interests for life or term of years,
exclusion of gain from the sale or 301.6011–2, amended; information and remainder or reversionary inter-
exchange of a taxpayer’s principal reporting, payments and reimburse- ests (TD 8886) 27, 3
residence (REG–105235–99) 44, 447 ments of qualified tuition and relat- 26 CFR 1.197–2, amended; applica-
26 CFR 1.152–2, amended; authorized ed expenses (REG–105316–98) 27, tion of the anti-churning rules for
placement agency, definition amend- 98 amortization of intangibles in part-
ed (REG–107279–00) 51, 590 26 CFR 301.7701–7, amended; cer- nerships (TD 8907) 49, 558
26 CFR 1.312–10, amended; tain pension, employee benefit, and 26 CFR 1.351–2, amended; 1.354–1,
1.367(b)–0, –1, –2, –3, –5, amend- certain investment trusts classified amended; 1.355–1, amended;
ed; 1.367(b)–6, revised; 1.367(b)–7, as domestic trusts 1.356–7, added; 1.1036–1, amend-
–8, –9, added; 1.367(e)–1, amend- (REG–108553–00) 44, 452 ed; nonqualified preferred stock,
ed; 1.381(a)–1, revised; stock trans- Publications: exchanges and distributions (TD
fer rules, carryover of earnings and 515, changes in tables 1 and 2 for 8904) 42, 350
taxes (REG–116050–99) 48, 520 Denmark treaty (Ann 59) 29, 120 26 CFR 1.368–1, amended; 1.368–1T,
26 CFR 1.679–1, –2, –3, –4, –5, –6, 901, changes in tables 1 and 2 for removed; corporate reorganizations;
2001–1 I.R.B. vii January 2, 2001

continuity of interest (TD 8898) 38, 1.6049–4, amended; 1.6049–7, Stock transfer rules, carryover of earnings
276 revised; 1.6050A–1, revised; and taxes (REG–116050–99) 48, 520
26 CFR 1.401(a)–20, amended; 1.6050D–1, revised; 1.6050E–1, Substitute forms, 1096, 1098, 1099,
1.401(a)(4)–4, amended; 1.401(a) revised; 1.6050H–2, revised; 5498, and W-2G, rules and specifica-
(26)–4, –6, amended; 1.411(a)–7, 1.6050J–1T, revised; 1.6050P–1, tions (RP 28) 27, 60
–11, amended; 1.411(a)–7T, –11T, revised; 1.6052–1, revised; electron- Tax claims in bankruptcy court (CD
removed; 1.411(d)–4, amended; ically filed information returns, due 2068) 28, 109
1.417(e)–1, amended; accrued bene- dates of (TD 8895) 40, 304 Tax conventions:
fits, involuntary cash-out of (TD 26 CFR 1.6049–7, amended; real Dutch pension plans, tax treaty bene-
8891) 32, 152 estate mortgage investment con- fits, Netherlands (Notice 57) 43, 389
26 CFR 1.472–8, correction; dollar- duits; reporting requirements and Shipping and aircraft agreement, State
value LIFO regulations, inventory other administrative matters (TD of Bahrain, 46, 475
price index computation (IPIC) 8888) 27, 3 Treaty residence “Liable to Tax” stan-
method (Ann 66) 32, 160 26 CFR 1.6695–1, amended; dard (RR 59) 52, 593
26 CFR 1.643(h)–1, amended; 1.6695–1T, removed; requirement to Tax shelters:
1.671–2(e), revised; 1.671–2T, retain copy of return or claim signed Avoidance using artificially high basis
removed; 1.672(f)–2, –3, –4, –5, by preparer (TD 8893) 31, 143 (Notice 44) 36, 255
amended; definition of grantor (TD 26 CFR 1.6695–2, added; 1.6695–2T, Disclosure rules, registration and list
8890) 30, 122 removed; earned income credit, pre- maintenance requirements, addition-
26 CFR 1.752–3, –5, amended; alloca- parer due diligence requirements al guidance on (TD 8896) 36, 249;
tion of nonrecourse liabilities by a (TD 8905) 44, 435 (REG–110311–98,
partnership (TD 8906) 46, 470 26 CFR 301.6103(j)(1)–1, amended; REG–103735–00,
26 CFR 1.894–1, revised; guidance 301.6103(j)(1)–1T, removed; REG–103736–00) 36, 258
regarding claims for certain income Census Bureau; disclosure of return Telefile voice signature test:
tax convention benefits (TD 8889) information (TD 8908) 51, 585 Notice of proposed rulemaking with-
30, 124 26 CFR 301.6651–1, amended; elec- drawn (Ann 68) 32, 161
26 CFR 1.1032–3, correction; disposi- tronically filed information returns, Temporary regulations removed (TD
tion of stock in a taxable transaction due date of (TD 8895) 40, 304 8892) 32, 158; correction (Ann 81)
(Ann 57) 28, 115 26 CFR 602.101, amended; capital 41, 348
26 CFR 1.1397E–1T redesignated as gains look-thru provisions for the Treaties:
1.1397E–1; 1.1397E–1, amended; sale or exchange of interest in a Denmark, Publications 515 and 901
qualified zone academy bonds, pass-thru entity; rules for dividing (Ann 59) 29, 120
guidance (TD 8903) 42, 352 the holding period of a partnership Ukraine, Publications 515 and 901
26 CFR 1.1502–3, correction; consoli- interest (TD 8902) 41, 323 (Ann 89) 45, 467
dated returns, limitations on the use 26 CFR 602.101, amended; earned Withholding rates, tax treaty benefits
of certain credits (Ann 73) 35, 230 income credit, preparer due diligence (TD 8889) 30, 124
26 CFR 1.6011–4T, amended; 301.6111– requirements (TD 8905) 44, 435 Trusts:
2T, amended; 301.6112–1T, amended; Retention of return or claim signed by Certain pension, employee benefit, and
tax shelters, disclosure rules, registra- tax preparer (TD 8893) 31, 143 certain investment trusts classified
tion and list maintenance require- Revocations, exempt organizations (Ann as domestic trusts
ments, additional guidance on (TD 62) 30, 137; (Ann 69) 33, 183 (REG–108553–00) 44, 452
8896) 36, 249 S corporations: Definition of grantor (TD 8890) 30,
26 CFR 1.6012–7T, removed; Charitable contributions, section 122
1.6061–2T, removed; 1.6065–2T, 170(a)(2) (RR 43) 41, 333 Section 935, Guam (Notice 61) 49, 569
removed; 602.101(c), amended; Qualified Subchapter S Subsidiary Uniform captialization applied to farm-
telefile voice signature test (TD Election, new Form 8869 available ing business (TD 8897) 36, 234; cor-
8892) 32, 158; correction (Ann 81) (Ann 83) 41, 348 rection (Ann 88) 44, 460
41, 348 Schedule P (Form 1120-FSC), foreign Withholding certificate, guidance for
26 CFR 1.6041–2, –6, revised; sales corporations (Notice 49) 37, 266 obtaining (RP 35) 35, 211
1.6042–2, revised; 1.6043–2, Separate return limitation year (SRLY)
revised; 1.6044–2, revised; losses (Notice 53) 38, 293
1.6045–1, amended; 1.6045–2, –4, Short-term leases, qualified lessee construc-
revised; 1.6047–1, revised; tion allowances for (TD 8901) 38, 272
January 2, 2001 viii 2001–1 I.R.B.

INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the
Superintendent of Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-
ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
ACCESS THE INTERNAL REVENUE BULLETIN ON THE INTERNET

You may view the Internal Revenue Bulletin on the Internet at www.irs.gov. Select Tax Info for Business at the bottom of the
page. Then select Internal Revenue Bulletins.
INTERNAL REVENUE BULLETINS ON CD–ROM

Internal Revenue Bulletins are available annually as part of Publication 1796 (Tax Products CD–ROM). The CD–ROM can be
purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders)
or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250–7954. Please allow two
to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE

INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.gov) or write to the IRS Bulletin Unit, W:CAR:MP:FP, Washington, DC 20224.

Official Business
Penalty for Private Use, $300
23C Assessment
23C Assessment Forms
http://www.eddiekahn.com/REF/23C_Assessment.htm (1 of 4) [1/13/2004 8:13:13 PM]

23C Assessment
Certificate
Internal Revenue Manual 3

Internal Revenue Manual 3(17)(63)(14).1
Account 6110 Tax Assessments

(2) All tax assessments must be recorded on Form 23C Assessment Certificate. The Assessment
Certificate must be signed by the Assessment Officer and dated. The Assessment Certificate is the legal

23C Assessment
document that permits collection activity…

Internal Revenue Manual 3(17)(46)2.3
Certification
(1) All assessments must be certified by signature of an authorized official on Form 23-C, Assessment
Certificate. A signed Form 23C authorizes issuance of notices and other collection action…
(2) Some assessments are prescribed for expeditious action as and be certified on a daily basis. These
assessments will require immediate preparation of Form 23C from RACS…
Form 23C is described in Document 7130, IRS Printed Product Catalog as:
23C - Assessment Certificate-Summary Record of Assessments
Form 23C is used to official assess tax liabilities. The completed form is retained in the Service
Center case file as a legal document to support the assessment made against the taxpayer. This
status notice is reissued to update the status notice file. TR:R:A Internal Use
Court Case
CURLEY v. U.S.
Cite as 791 F. Supp 52 (E.D.N.Y. 1992)
… [5] Plaintiff relies heavily on Brafman v. United States, 384 F.2d 863 (5th Cir. 1967), where an
assessment was invalidated due to the lack of a signature on the 23C Form. This defect, however, was a
significant violation of the regulation…
…A signature requirement protects the taxpayer by ensuring that a responsible officer has approved the
assessment…
764 FEDERAL SUPPLEMENT Page 315
BREWER v. U.S.
Cite as 764 F.Supp. 309 (S.D.N.Y. 1991)
…However, there is no indication in the record before us that the "Summary Report of Assessments",
known as Form 23C, was completed and signed by the assessment officer as required by 26 CFR §
301.6203-1.3 Nor do the Certificates of Assessments and Payments contain 23C dates which would

23C Assessment
allow us to conclude that a Form 23C form was signed on that date. See United States v. Dixon, 672 F.
Supp. 503, 505-506 (M.D.Ala.1987). Thus we find that the plaintiff has raised a factual question
concerning whether IRS procedures were followed in making the assessments…
3 This regulation provides, in relevant part, that "[t]he assessment shall be made by an assessment officer
signing the summary record of assessment…

5 Reasons why Christians should not

obtain a State Marriage License
icon below.
http://www.eddiekahn.com/REF/5Reasons.htm [1/13/2004 8:13:13 PM]

marriage license
5 Reasons Why Christians Should Not Obtain a

State Marriage License
by Pastor Matt Trewhella
Every year thousands of Christians amble down to their
local county courthouse and obtain a marriage license
from the State in order to marry their future spouse.
They do this unquestioningly. They do it because their
pastor has told them to go get one, and besides,
"everybody else gets one." This pamphlet attempts to
answer the question - why should we not get one?
1. The definition of a "license" demands that we not
obtain one to marry. Black’s Law Dictionary defines
"license" as, "The permission by competent authority to
do an act which without such permission, would be
illegal." We need to ask ourselves- why should it be
illegal to marry without the State’s permission? More
importantly, why should we need the State’s permission
to participate in something which God instituted (Gen.
2:18-24)? We should not need the State’s permission to
marry nor should we grovel before state officials to seek
it. What if you apply and the State says "no"? You must
http://www.mercyseat.net/BROCHURES/marriagelicense.htm (1 of 9) [1/18/2001 5:11:56 PM]
marriage license
understand that the authority to license implies the

power to prohibit. A license by definition "confers a
right" to do something. The State cannot grant the right
to marry. It is a God-given right.
2. When you marry with a marriage license, you

grant the State jurisdiction over your marriage.
When you marry with a marriage license, your marriage
is a creature of the State. It is a corporation of the State!
Therefore, they have jurisdiction over your marriage
including the fruit of your marriage. What is the fruit of
your marriage? Your children and every piece of
property you own. There is plenty of case law in
American jurisprudence which declares this to be true.
In 1993, parents were upset here in Wisconsin because a
test was being administered to their children in the
government schools which was very invasive of the
family’s privacy. When parents complained, they were
shocked by the school bureaucrats who informed them
that their children were required to take the test by law
and that they would have to take the test because they
(the government school) had jurisdiction over their
children. When parents asked the bureaucrats what gave
them jurisdiction, the bureaucrats answered, "your
marriage license and their birth certificates." Judicially,

marriage license
and in increasing fashion, practically, your state

marriage license has far-reaching implications.
3. When you marry with a marriage license, you
place yourself under a body of law which is immoral.
By obtaining a marriage license, you place yourself
under the jurisdiction of Family Court which is
governed by unbiblical and immoral laws. Under these
laws, you can divorce for any reason. Often, the courts
side with the spouse who is in rebellion to God, and
castigates the spouse who remains faithful by ordering
him or her not to speak about the Bible or other matters
of faith when present with the children.
As a minister, I cannot in good conscience perform a
marriage which would place people under this immoral
body of laws. I also cannot marry someone with a
marriage license because to do so I have to act as an
agent of the State! I would have to sign the marriage
license, and I would have to mail it into the State. Given
the State’s demand to usurp the place of God and family
regarding marriage, and given it’s unbiblical, immoral
laws to govern marriage, it would be an act of treason
for me to do so.
4. The marriage license invades and removes
God-given parental authority. When you read the
Bible, you see that God intended for children to have

marriage license
their father’s blessing regarding whom they married.

Daughters were to be given in marriage by their fathers
(Dt. 22:16; Ex. 22:17; I Cor. 7:38). We have a vestige
of this in our culture today in that the father takes his
daughter to the front of the altar and the minister asks,
"Who gives this woman to be married to this man?"
Historically, there was no requirement to obtain a
marriage license in colonial America. When you read
the laws of the colonies and then the states, you see only
two requirements for marriage. First, you had to obtain
your parents permission to marry, and second, you had
to post public notice of the marriage 5-15 days before
the ceremony.
Notice you had to obtain your parents permission. Back
then you saw godly government displayed in that the
State recognized the parents authority by demanding
that the parents permission be obtained. Today, the
all-encompassing ungodly State demands that their
permission be obtained to marry.
By issuing marriage licenses, the State is saying, "You
don’t need your parents permission, you need our
permission." If parents are opposed to their child’s
marrying a certain person and refuse to give their
permission, the child can do an end run around the
parents authority by obtaining the State’s permission,

marriage license
and marry anyway. This is an invasion and removal of

God-given parental authority by the State.
5. When you marry with a marriage license, you are
like a polygamist. From the State’s point of view, when
you marry with a marriage license, you are not just
marrying your spouse, but you are also marrying the
State.
The most blatant declaration of this fact that I have ever
found is a brochure entitled "With This Ring I Thee
Wed." It is found in county courthouses across Ohio
where people go to obtain their marriage licenses. It is
published by the Ohio State Bar Association. The
opening paragraph under the subtitle "Marriage Vows"
states, "Actually, when you repeat your marriage vows
you enter into a legal contract. There are three parties
to that contract. 1.You; 2. Your husband or wife, as the
case may be; and 3. the State of Ohio."
See, the State and the lawyers know that when you
marry with a marriage license, you are not just marrying
your spouse, you are marrying the State! You are like a
polygamist! You are not just making a vow to your
spouse, but you are making a vow to the State and your
spouse. You are also giving undue jurisdiction to the
State.

marriage license
When Does the State Have Jurisdiction Over a

Marriage?
God intended the State to have jurisdiction over a
marriage for two reasons - 1). in the case of divorce,
and 2). when crimes are committed i.e., adultery,
bigamy. etc. Unfortunately, the State now allows
divorce for any reason, and it does not prosecute for
adultery.
In either case, divorce or crime, a marriage license is
not necessary for the courts to determine whether a
marriage existed or not. What is needed are witnesses.
This is why you have a best man and a maid of honor.
They should sign the marriage certificate in your family
Bible, and the wedding day guest book should be kept.
Marriage was instituted by God, therefore it is a
God-given right. According to Scripture, it is to be
governed by the family, and the State only has
jurisdiction in the cases of divorce or crime.
History of Marriage Licenses in America
George Washington was married without a marriage

license. Abraham Lincoln was married without a
marriage license. So, how did we come to this place in

marriage license
America where marriage licenses are issued?

Historically, all the states in America had laws
outlawing the marriage of blacks and whites. In the
mid-1800’s, certain states began allowing interracial
marriages or miscegenation as long as those marrying
received a license from the state. In other words they
had to receive permission to do an act which without
such permission would have been illegal.
Blacks Law Dictionary points to this historical fact
when it defines "marriage license" as, "A license or
permission granted by public authority to persons who
intend to intermarry." "Intermarry" is defined in Black’s
Law Dictionary as, "Miscegenation; mixed or
interracial marriages."
Give the State an inch and they will take a 100 miles (or
as one elderly woman once said to me "10,000 miles.")
Not long after these licenses were issued, some states
began requiring all people who marry to obtain a
marriage license. In 1923, the Federal Government
established the Uniform Marriage and Marriage License
Act (they later established the Uniform Marriage and
Divorce Act). By 1929, every state in the Union had
adopted marriage license laws.
What Should We Do?

marriage license
Christian couples should not be marrying with State

marriage licenses, nor should ministers be marrying
people with State marriage licenses. Some have said to
me, "If someone is married without a marriage license,
then they aren’t really married." Given the fact that
states may soon legalize same-sex marriages, we need
to ask ourselves, "If a man and a man marry with a State
marriage license, and a man and woman marry without
a State marriage license - who’s really married? Is it the
two men with a marriage license, or the man and
woman without a marriage license? In reality, this
contention that people are not really married unless they
obtain a marriage license simply reveals how Statist we
are in our thinking. We need to think biblically.
You should not have to obtain a license from the State
to marry someone anymore than you should have to
obtain a license from the State to be a parent, which
some in academic and legislative circles are currently
pushing to be made law.
When I marry a couple, I always buy them a Family
Bible which contains birth and death records, and a
marriage certificate. We record the marriage in the
Family Bible. What’s recorded in a Family Bible will
stand up as legal evidence in any court of law in
America. Both George Washington and Abraham
Lincoln were married without a marriage license. They
marriage license
simply recorded their marriages in their Family Bibles.

So should we.
(Pastor Trewhella has been marrying couples without
marriage licenses for ten years. Many other pastors also
refuse to marry couples with State marriage licenses.
This pamphlet is not comprehensive in scope. Rather,
the purpose of this pamphlet is to make you think and
give you a starting point to do further study of your
own. If you would like an audio sermon regarding
this matter, just send a gift of at least five dollars in
cash to: Mercy Seat Christian Church 10240 W.
National Ave. PMB #129 Milwaukee, Wisconsin
53227.
www.mercyseat.net)
This pamphlet is available in print form. Click here to order.

63 Million people can't be wrong
63 Million Non-Filers
This is a letter from the Department of the Treasury, Internal Revenue Service "Based on our
1996 tax filing program, we estimate there are approximately 63 million taxpayers who have not
filed a tax return..."
Click here to read the letter for yourself.
icon below.
http://www.eddiekahn.com/REF/63Million.htm [1/13/2004 8:13:14 PM]

Can IRS agent enforce a 2039 Summons for books and records
Can an IRS agent enforce a 2039

Summons for books and records?
Unless the Agent has an enforcement Pocket Commission and the agent is collecting taxes on
gasoline pursuant to IRC § 6420 (e)(2), § 6421 (g)(2), and § 6427 (j)(2), the answer would be NO!
Do the IRS Agents use this summons for virtually every attempt to get books and records from
American citizens...YES! Do they have authority to do it...NO! Click HERE to view the chart that
verifies the above statements.
How to use this chart? If you receive a 2039 Summons from an IRS Agent you will want to meet
with him/her personally. You will ask for copy of Pocket Commission (see Pocket Commission
page) to verify that they an enforcement commission. Give them a copy of the chart and ask them
if they are trying to collect gasoline taxes (excise tax) from you. Ask them for there delegated
authority to collect excise taxes. At that point I doubt the Agent will want to continue the
conversation. If they try to proceed with require you to produce books and records go to his
supervisor and ask how to file criminal compliant under Title 18 § 499 on this Agent.
What you are really doing is educating the Agent I can almost guarantee they have never seen
these documents. This should be a fun experience at your local IRS office.
icon below.
http://www.eddiekahn.com/REF/can_irs_agent_enforce.htm [1/13/2004 8:13:14 PM]

Pocket Commission
Pocket Commission
Here is some exciting new information that Eddie received from an ex IRS
Collection Agent regarding Pocket Commissions (Personal Identification and
Authority limitations).
Eddie was told by the Agent that no Examination Agent or Collection Agent
has an enforcement pocket commission which is mandatory if they are to
summons records, lien, levy or seize property.
This information has already been used in an order to show cause judicial
hearing. The Judge and the US Attorney did not know what to do with the
challenge. The Judge has taken the case under advisement (in other words
he is asking for help from someone higher up).
According to the Agent, this is a very powerful revelation that could have a
dramatic effect on Collection and Examination Agents.
Please go to the IRS Handbook 1.16.4 Chapter 3 (Pocket Commissions) web
site to verify the statements made above.
Please view additional documents Eddie received from the ex IRS Agent
regarding this matter.
Click Here to see The Department of the Treasury organizational chart
which verifies the pocket commission information that the IRS Examination
and Collection Agents have no enforcement authority. If they did have such
http://www.eddiekahn.com/REF/pocket_commission.htm (1 of 2) [1/13/2004 8:13:15 PM]

Pocket Commission
authority they would be under the Under Secretary for Enforcement.

Title 26 Enforcement Regulations
icon below.
http://www.eddiekahn.com/REF/pocket_commission.htm (2 of 2) [1/13/2004 8:13:15 PM]

Title 26 USC parts 61 - 80 Enforcement Regulations
Location of
Title 26 Enforcement
Description
USC Regulations
§6020 Returns prepared for or executed by Secretary 27 CFR parts 53, 70
§6201 Assessment authority 27 CFR Part 70
§6203 Method of assessment 27 CFR Part 70
§6212 Notice of deficiency No Regulations
§6213 Restrictions applicable to: deficiencies, petition to Tax Court No Regulations
§6214 Determinations by Tax Court No Regulations
§6215 Assessment of deficiency found by Tax Court No Regulations
§6301 Collection authority 27 CFR Parts 24, 25, 53, 70, 250,
270, 275
§6303 Notice and demand for tax 27 CFR Parts 53, 70
§6321 Lien for taxes 27 CFR Part 70
§6331 Levy and Distraint 27 CFR Part 70
§6332 Surrender of property subject to levy 27 CFR Part 70
§6420 Gasoline used on farms No Regulations
§6601 Interest on underpayment, nonpayment, or extensions for payment, of tax 27 CFR Parts 70, 170, 194, 296
§6651 Failure to file tax return or to pay tax 27 CFR Parts 24, 25, 70, 194
§6671 Rules for application of assessable penalties 27 CFR Part 70
§6672 Failure to collect and pay over tax, or attempt to evade or defeat tax 27 CFR Part 70
§6701 Penalties for adding and abetting understatement of tax liability 27 CFR Part 70
§6861 Jeopardy assessments of income, estate, and gift taxes No Regulations
§6902 Provisions of special application to transferees No Regulations
§7201 Attempt to evade or defeat tax No Regulations
§7203 Willful failure to file return, supply information, or pay tax No Regulations
§7206 Fraud and false statements No Regulations
§7207 Fraudulent returns, statements and other documents 27 CFR Part 70
§7210 Failure to obey summons No Regulations
§7212 Attempts to interfere with administration of Internal Revenue laws 27 CFR Parts 170, 270, 275, 290,
295, 296
§7342 Penalty for refusal to permit entry, or examination 27 CFR Parts 24, 25, 170, 270, 275,
290, 295, 296
§7343 Definition of term "person" No Regulations

§7344 Extended application of penalties relating to officers of the Treasury Department No Regulations
§7401 Authorization (judicial proceedings) 27 CFR Part 70
§7402 Jurisdiction of district courts No Regulations
§7403 Action to enforce lien or to subject property to payment of tax 27 CFR Part 70
§7454 Burden of proof in fraud, foundation manager, and transferee cases No Regulations
§7601 Canvass of districts for taxable persons and objects 27 CFR Part 70
§7602 Examination of books and witnesses 27 CFR Parts 70, 170, 296
§7603 Service of summons 27 CFR Part 70
§7604 Enforcement of summons 27 CFR Part 70
§7605 Time and place of examination 27 CFR Part 70
§7608 Authority of Internal Revenue enforcement officers 27 CFR Parts 70, 170, 296
2039 Summons Under Title 26 §7602(c)(1)
Form 2039 – Administrative Summons Obtaining Evidence from Abroad Administratively
§7602(c)(1)
Examination of Book and
Implementing Regulation records under Section
§7604
§7602…….……...27 CFR Parts 170, 296
§7601-7606…….27 CFR Part 70
§6420……………No Regulations
§6427……………26 CFR Part 48
§4041……………26 CFR Part 48
§4081……………26 CFR Part 48 §7604
§4101……………26 CFR Part 48
Enforcement of summons
under §6420(e)(2),
§6421(g)(2), and
§6427(I)(2) or §7602
§6420(e)(2) §6421(g)(2) §6427(j)(2)

Gasoline used for non- Gasoline used for non- Gasoline used for non-
highway – Exam of books highway – Exam of books highway – Exam of books
and witnesses under §7602 and witnesses under §7602 and witnesses under §7602
§4091 §4081 §4041

Imposition of tax on Imposition of tax on Imposition of tax on Diesel
Aviation fuel removal, entry or sale fuel and special motor fuels
§4101
Registration and bond
required by secretary to
register under §4041,
§4081, or §4091
CFR 1.861-8 Sources of Income
Code of Federal Regulation 1.861-8

Code of Federal Regulation 1.861-8* - Letter summarizing Federal Regulation which
determines whether the "gross income" of an individual is derived from a taxable
source.
icon below.
http://www.eddiekahn.com/REF/1.861-8_sources_of_income.htm [1/13/2004 8:13:17 PM]

Internal Revenue Service, Treasury § 1.861–8
copyrights, secret processes and for- lowing), subchapter N, chapter 1 of the

mulas, good will, trademarks, trade Code, and the regulations thereunder, a
brands, franchises, and other like prop- sale of personal property is con-
erty. The income arising from the rent- summated at the time when, and the
al of property, whether tangible or in- place where, the rights, title, and in-
tangible, located within the United terest of the seller in the property are
States, or from the use of property, transferred to the buyer. Where bare
whether tangible or intangible, within legal title is retained by the seller, the
the United States, is from sources sale shall be deemed to have occurred
within the United States. For taxable at the time and place of passage to the
years beginning after December 31, buyer of beneficial ownership and the
1966, gains described in section risk of loss. However, in any case in
871(a)(1)(D) and section 881(a)(4) from which the sales transaction is arranged
the sale or exchange after October 4, in a particular manner for the primary
1966, of patents, copyrights, and other purpose of tax avoidance, the foregoing
like property shall be treated, as pro- rules will not be applied. In such cases,
vided in section 871(e)(2), as rentals or all factors of the transaction, such as
royalties for the use of, or privilege of negotiations, the execution of the
using, property or an interest in prop- agreement, the location of the prop-
erty. See paragraph (e) of § 1.871–11. erty, and the place of payment, will be
[T.D. 7378, 40 FR 45434, Oct. 2, 1975] considered, and the sale will be treated
as having been consummated at the
§ 1.861–6 Sale of real property. place where the substance of the sale
Gross income from sources within occurred.
the United States includes gain, com- (d) Production and sale. For provisions
puted under the provisions of section respecting the source of income derived
1001 and the regulations thereunder, from the sale of personal property pro-
derived from the sale or other disposi- duced by the taxpayer, see section
tion of real property located in the 863(b)(2) and paragraphs (b) of §§ 1.863–1
United States. For the treatment of and 1.863–2.
capital gains and losses, see subchapter (e) Section 306 stock. For determining
P (section 1201 and following), chapter the source of gain on the disposition of
1 of the Code, and the regulations section 306 stock, see section 306(f) and
thereunder. the regulations thereunder.
§ 1.861–7 Sale of personal property. § 1.861–8 Computation of taxable in-

(a) General. Gains, profits, and income from sources within the
United States and from other
come derived from the purchase and sources and activities.
sale of personal property shall be treat-
ed as derived entirely from the country (a) In general—(1) Scope. Sections
in which the property is sold. Thus, 861(b) and 863(a) state in general terms
gross income from sources within the how to determine taxable income of a
United States includes gains, profits, taxpayer from sources within the
and income derived from the purchase United States after gross income from
of personal property without the sources within the United States has
United States and its sale within the been determined. Sections 862(b) and
United States. 863(a) state in general terms how to de-
(b) Purchase within a possession. Not- termine taxable income of a taxpayer
withstanding paragraph (a) of this sec- from sources without the United States
tion, income derived from the purchase after gross income from sources with-
of personal property within a posses- out the United States has been deter-
sion of the United States and its sale mined. This section provides specific
within the United States shall be treat- guidance for applying the cited Code
ed as derived partly from sources with- sections by prescribing rules for the al-
in and partly from sources without the location and apportionment of ex-
United States. See section 863(b)(3) and penses, losses, and other deductions
§ 1.863–2. (referred to collectively in this section
(c) Country in which sold. For the pur- as ‘‘deductions’’) of the taxpayer. The
poses of part I (section 861 and fol- rules contained in this section apply in
135
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
determining taxable income of the tax- (ii) Gross income derived from busi-
payer from specific sources and activi- ness;
ties under other sections of the Code, (iii) Gains derived from dealings in
referred to in this section as operative property;
sections. See paragraph (f)(1) of this (iv) Interest;
section for a list and description of op- (v) Rents;
erative sections. The operative sections (vi) Royalties;
include, among others, sections 871(b) (vii) Dividends;
and 882 (relating to taxable income of a (viii) Alimony and separate mainte-
nonresident alien individual or a for- nance payments;
eign corporation which is effectively (ix) Annuities;
connected with the conduct of a trade (x) Income from life insurance and
or business in the United States), sec- endowment contracts;
tion 904(a)(1) (as in effect before enact- (xi) Pensions;
ment of the Tax Reform Act of 1976, re- (xii) Income from discharge of in-
lating to taxable income from sources debtedness;
within specific foreign countries), and (xiii) Distributive share of partner-
section 904(a)(2) (as in effect before en- ship gross income;
actment of the Tax Reform Act of 1976, (xiv) Income in respect of a decedent;
or section 904(a) after such enactment, (xv) Income from an interest in an es-
relating to taxable income from all tate or trust.
sources without the United States). (4) Statutory grouping of gross income
and residual grouping of gross income.
(2) Allocation and apportionment of de-
For purposes of this section, the term
ductions in general. A taxpayer to which
‘‘statutory grouping of gross income’’
this section applies is required to allo-
or ‘‘statutory grouping’’ means the
cate deductions to a class of gross in-
gross income from a specific source or
come and, then, if necessary to make
activity which must first be deter-
the determination required by the op-
mined in order to arrive at ‘‘taxable in-
erative section of the Code, to appor-
come’’ from which specific source or
tion deductions within the class of
activity under an operative section.
gross income between the statutory
(See paragraph (f)(1) of this section.)
grouping of gross income (or among the
Gross income from other sources or ac-
statutory groupings) and the residual tivities is referred to as the ‘‘residual
grouping of gross income. Except for grouping of gross income’’ or ‘‘residual
deductions, if any, which are not defi- grouping.’’ For example, for purposes
nitely related to gross income (see of determining taxable income from
paragraphs (c)(2) and (e)(9) of this sec- sources within specific foreign coun-
tion) and which, therefore, are ratably tries and possessions of the United
apportioned to all gross income, all de- States, in order to apply the per-coun-
ductions of the taxpayer (except the try limitation to the foreign tax credit
deductions for personal exemptions (as in effect before enactment of the
enumerated in paragraph (e)(11) of this Tax Reform Act of 1976), the statutory
section) must be so allocated and ap- groupings are the separate gross in-
portioned. As further detailed below, comes from sources within each coun-
allocations and apportionments are try and possession. Moreover, if the
made on the basis of the factual rela- taxpayer has income subject to section
tionship of deductions to gross income. 904(d) (as in effect after enactment of
(3) Class of gross income. For purposes the Tax Reform Act of 1976), such in-
of this section, the gross income to come constitutes one or more separate
which a specific deduction is definitely statutory groupings. In the case of the
related is referred to as a ‘‘class of per-country limitation, the residual
gross income’’ and may consist of one grouping is the aggregate of gross in-
or more items (or subdivisions of these come from sources within the United
items) of gross income enumerated in States. In some instances, where the
section 61, namely: operative section so requires, the stat-
(i) Compensation for services, includ- utory grouping or the residual group-
ing fees, commissions, and similar ing may include, or consist entirely of,
items; excluded income. See paragraph (d)(2)
136
of this section with respect to the allo- to such class of gross income (without
cation and apportionment of deduc- regard to the taxpayable year in which
tions to excluded income. such gross income is received or ac-
(5) Effective date—(i) Taxable years be- crued or is expected to be received or
ginning after December 31, 1976. The pro- accrued). The classes of gross income
visions of this section apply to taxable are not predetermined but must be de-
years beginning after December 31, termined on the basis of the deductions
1976. to be allocated. Although most deduc-
(ii) Taxable years beginning before Jan- tions will be definitely related to some
uary 1, 1977. For taxable years begin- class of a taxpayer’s total gross in-
ning before January 1, 1977, § 1.861–8 ap- come, some deductions are related to
plies as in effect on October 23, 1957 all gross income. In addition, some de-
(T.D. 6258), as amended on August 22, ductions are treated as not definitely
1966 (T.D. 6892) and on September 29, related to any gross income and are
1975 (T.D. 7378). The specific rules for ratably apportioned to all gross in-
allocation and apportionment of deduc- come. (See paragraph (e)(9) of this sec-
tions set forth in this section may, at tion.) In allocating deductions it is not
the option of the taxpayer, apply to necessary to differentiate between de-
those taxable years on a deduction-by- ductions related to one item of gross
deduction basis if the rules are applied income and deductions related to an-
consistently to all taxable years with other item of gross income where both
respect to which action by the Internal
items of gross income are exclusively
Revenue Service is not barred by any
within the same statutory grouping or
statute of limitations. Thus, for exam-
exclusively within the residual group-
ple, a calendar year taxpayer may
ing.
choose to have the rules of paragraph
(e)(2) of this section apply for the allo- (2) Relationship to activity or property.
cation and apportionment of all inter- A deduction shall be considered defi-
est expenses for the two taxable years nitely related to a class of gross in-
ending December 31, 1975 and 1976, come and therefore allocable to such
which are open years under examina- class if it is incurred as a result of, or
tion, and may justify the allocation incident to, an activity or in connec-
and apportionment of all research and tion with property from which such
development expenses for those years class of gross income is derived. Where
on a basis supportable under § 1.861–8 as a deduction is incurred as a result of,
in effect for 1975 and 1976 without re- or incident to, an activity or in connec-
gard to the rules of paragraph (e)(3) of tion with property, which activity or
this section. property generates, has generated, or
(b) Allocation—(1) In general. For pur- could reasonably have been expected to
poses of this section, the gross income generate gross income, such deduction
to which a specific deduction is defi- shall be considered definitely related
nitely related is referred to as a ‘‘class to such gross income as a class whether
of gross income’’ and may consist of or not there is any item of gross in-
one or more items of gross income. The come in such class which is received or
rules emphasize the factual relation- accrued during the taxable year and
ship between the deduction and a class whether or not the amount of deduc-
of gross income. See paragraph (d)(1) of tions exceeds the amount of the gross
this section which provides that in a income in such class. See paragraph
taxable year there may be no item of (d)(1) of this section and example 17 of
gross income in a class or less gross in- paragraph (g) of this section with re-
come than deductions allocated to the spect to cases in which there is an ex-
class, and paragraph (d)(2) of this sec- cess of deductions. In some cases, it
tion which provides that a class of will be found that this subparagraph
gross income may include excluded in- can most readily be applied by deter-
come. Allocation is accomplished by mining, with respect to a deduction,
determining, with respect to each de- the categories of gross income to which
duction, the class of gross income to it is not related and concluding that it
which the deduction is definitely re- is definitely related to a class con-
lated and then allocating the deduction sisting of all other gross income.
137
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
(3) Supportive functions. [Reserved] class is received or accrued or the

For guidance, see § 1.861–8T(b)(3). amount of the deduction exceeds the
(4) Deductions related to a class of gross amount of such class of gross income.
income. See paragraph (e) of this sec- In apportioning deductions, it may be
tion for rules relating to the allocation that, for the taxable year, there is no
and apportionment of certain specific gross income in the statutory grouping
deductions definitely related to a class (or residual grouping), or that deduc-
of gross income. See paragraph (c)(1) of tions exceed the amount of gross in-
this section for rules relating to the come in the statutory grouping (or re-
apportionment of deductions. sidual grouping). If there is no gross in-
(5) Deductions related to all gross income in a statutory grouping or the
come. If a deduction does not bear a
amount of deductions allocated and ap-
definite relationship to a class of gross
portioned to a statutory grouping ex-
income constituting less than all of
gross income, it shall ordinarily be ceeds the amount of gross income in
treated as definitely related and allo- the statutory grouping, the effects are
cable to all of the taxpayer’s gross in- determined under the operative sec-
come except where provided to the con- tion. If the taxpayer is a member of a
trary under paragraph (e) of this sec- group filing a consolidated return, such
tion. Paragraph (e)(9) of this section excess of deductions allocated or ap-
lists various deductions which gen- portioned to a statutory grouping of
erally are not definitely related to any income of such member is taken into
gross income and are ratably appor- account in determining the consoli-
tioned to all gross income. dated taxable income from such statu-
(c) Apportionment of deductions—(1) tory grouping, and such excess of de-
Deductions definitely related to a class of ductions allocated or apportioned to
gross income. [Reserved] For guidance, the residual grouping of income is
see § 1.861–8T(c)(1). taken into account in determining the
(2) Apportionment based on assets. [Re- consolidated taxable income from the
served] For guidance, see § 1.861– residual grouping. See § 1.1502–4(d)(1)
8T(c)(2). and the last sentence of § 1.1502–12. For
(3) Deductions not definitely related to an illustration of the principles of this
any gross income. If a deduction is not paragraph (d)(1), see example 17 of
definitely related to any gross income paragraph (g) of this section.
(see paragraph (e)(9) of this section),
(2) Allocation and apportionment to ex-
the deduction must be apportioned rat-
empt, excluded, or eliminated income. [Re-
ably between the statutory grouping
(or among the statutory groupings) of served] For guidance, see § 1.861–
gross income and the residual group- 8T(d)(2).
ing. Thus, the amount apportioned to (e) Allocation and apportionment of cer-
each statutory grouping shall be equal tain deductions—(1) In general. Subpara-
to the same proportion of the deduc- graphs (2) and (3) of this paragraph con-
tion which the amount of gross income tain rules with respect to the alloca-
in the statutory grouping bears to the tion and apportionment of interest ex-
total amount of gross income. The pense and research and development
amount apportioned to the residual expenditures, respectively. Subpara-
grouping shall be equal to the same graphs (4) through (8) of this paragraph
proportion of the deduction which the contain rules with respect to the allo-
amount of the gross income in the re- cation of certain other deductions.
sidual grouping bears to the total Subparagraph (9) of this paragraph
amount of gross income. lists those deductions which are ordi-
(d) Excess of deductions and excluded narily considered as not being defi-
and eliminated income—(1) Excess of de- nitely related to any class of gross in-
ductions. Each deduction which bears a come. Subparagraph (10) of this para-
definite relationship to a class of gross graph lists special deductions of cor-
income shall be allocated to that class porations which must be allocated and
in accordance with paragraph (b)(1) of
apportioned. Subparagraph (11) of this
this section even though, for the tax-
paragraph lists personal exemptions
able year, no gross income in such
138
which are neither allocated nor appor- cident to, the ownership of the related
tioned. Examples of allocation and ap- corporation and, thus, shall be consid-
portionment are contained in para- ered definitely related and allocable to
graph (g) of this section. dividends received or to be received
(2) Interest. [Reserved] For guidance, from the related corporation. If a cor-
see § 1.861–8T(e)(2). poration has a foreign or international
(3) Research and experimental expendi- department which exercises steward-
tures. For rules regarding the alloca- ship or overseeing functions with re-
tion and apportionment of research and spect to related foreign corporations
experimental expenditures, see § 1.861– and, in addition, the department has
17. other functions which are attributable
(4) Stewardship expenses attributable to to other foreign-source income (such as
dividends received. If a corporation ren- fees for services rendered outside of the
ders services for the benefit of a re- United States for the benefit of foreign
lated corporation and the corporation related corporations, foreign royalties,
charges the related corporation for and gross income of foreign branches)
such services (see section 482 and the to which its deductions are also to be
regulations thereunder which provide allocated, some part of the deductions
for an allocation where the charge is with respect to that department are
not on an arm’s length basis as deter- considered definitely related to the
mined therein), the deductions for ex- other foreign-source income. In some
penses of the corporation attributable instances, the operations of a foreign
to the rendering of such services are or international department will also
considered definitely related to the be attributable to United States source
amounts so charged and are to be allo- income (such as fees for services per-
cated to such amounts. However, the formed in the United States) to which
regulations under section 482 (§ 1.482– its deductions are to be allocated.
2(b)(2)(ii) recognize a type of activity Methods of apportionment which could
which is not considered to be for the possibly be utilized with respect to
benefit of a related corporation but is stewardship expenses include compari-
considered to constitute ‘‘stewardship’’ sons of time spent by employees
or ‘‘overseeing’’ functions undertaken weighted to take into account dif-
for the corporation’s own benefit as an ferences in compensation, or compari-
investor in the related corporation, and sons of each related corporation’s gross
therefore, a charge to the related cor- receipts, gross income, or unit sales
poration for such stewardship or over- volume, assuming that stewardship ac-
seeing functions is not provided for. tivities are not substantially dis-
Services undertaken by a corporation proportionate to such factors. See
of a stewardship or overseeing char- paragraph (f)(5) of this section for the
acter generally represent a duplication type of verification that may be re-
of services which the related corpora- quired in this respect. See examples 17
tion has independently performed for and (18) of paragraph (g) of this section
itself. For example, assume that a re- for the allocation and apportionment
lated corporation, which has a quali- of stewardship expenses. See paragraph
fied financial staff, makes an analysis (b)(3) of this section for the allocation
to determine the amount and source of and apportionment of deductions at-
its borrowing needs and submits a re- tributable to supportive functions
port of its findings and a plan of bor- other than stewardship activities.
rowing to the parent corporation, and (5) Legal and accounting fees and ex-
the parent corporation’s financial staff penses. Fees and other expenses for
reviews the findings and plans to deter- legal and accounting services are ordi-
mine whether to advise the related cor- narily definitely related and allocable
poration to reconsider its plan. The to specific classes of gross income or to
services of review performed by the all the taxpayer’s gross income, de-
parent corporation for its own benefit pending on the nature of the services
are of a stewardship or overseeing rendered (and are apportioned as pro-
character. The deductions resulting vided in paragraph (c)(1) of this sec-
from stewardship or overseeing function). For example, accounting fees for
tions are incurred as a result of, or in- the preparation of a study of the costs
139
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
involved in manufacturing a specific related and allocable to a class of gross

product will ordinarily be definitely re- income that includes the statutory
lated to the class of gross income de- grouping of foreign source income.
rived from (or which could reasonably When the law of the state includes divi-
have been expected to be derived from) dends that are treated under section
that specific product. The taxpayer is 862(a)(2) as income from sources with-
not relieved from his responsibility to out the United States in taxable in-
make a proper allocation and appor- come apportionable to the state, but
tionment of fees on the grounds that does not include factors of the corpora-
the statement of services rendered does tion paying such dividends in the ap-
not identify the services performed be- portionment formula used to determine
yond a generalized designation such as state taxable income, an appropriate
‘‘professional,’’ or does not provide any portion of the deduction for state in-
type of allocation, or does not properly come tax will be considered definitely
allocate the fees involved. related and allocable to a class of gross
(6) Income taxes—(i) In general. The income consisting solely of foreign
deduction for state, local, and foreign source dividend income. A deduction
income, war profits and excess profits for state income tax will not be consid-
taxes (‘‘state income taxes’’) allowed ered definitely related to a hypo-
by section 164 shall be considered defi- thetical amount of income calculated
nitely related and allocable to the under federal tax principles when the
gross income with respect to which
jurisdiction imposing the tax computes
such state income taxes are imposed.
taxable income under different prin-
For example, if a domestic corporation
ciples. A corporate taxpayer’s deduc-
is subject to state income taxation and
tion for a state franchise tax that is
the state income tax is imposed in part
computed on the basis of income at-
on an amount of foreign source income,
then that part of the taxpayer’s deduc- tributable to business activities con-
tion for state income tax that is attrib- ducted within the state must be allo-
utable to foreign source income is defi- cated and apportioned in the same
nitely related and allocable to foreign manner as the deduction for state in-
source income. In allocating and appor- come taxes. In determining, for exam-
tioning the deduction for state income ple, both the foreign tax credit under
tax for purposes including (but not lim- section 904 of the Code and the consoli-
ited to) the computation of the foreign dated foreign tax credit limitation
tax credit limitation under section 904 under § 1.1502–4 of the regulations, the
of the Code and the consolidated for- deduction for state income tax may be
eign tax credit under § 1.1502–4 of the allocable and apportionable to foreign
regulations, the income upon which the source income in a statutory grouping
state income tax is imposed is deter- described in section 904(d) in a taxable
mined by reference to the law of the ju- year in which the taxpayer has no for-
risdiction imposing the tax. Thus, if a eign source income in such statutory
state attributes taxable income to a grouping. Alternatively, such an allo-
corporate taxpayer by applying an ap- cation or apportionment may be appro-
portionment formula that takes into priate if a taxpayer corporation has no
consideration the income and factors of foreign source income in a statutory
one or more corporations related by grouping, but its deduction is attrib-
ownership to the corporate taxpayer utable to foreign source income in such
and engaging in activities related to grouping that is attributed to the tax-
the business of the corporate taxpayer, payer corporation under the law of a
then the income so attributed is the in- state which attributes taxable income
come upon which the state income tax to a corporation by applying an appor-
is imposed. If the income so attributed tionment formula that takes into con-
to the corporate taxpayer includes for- sideration the income and factors of
eign source income, then, in computing one or more corporations related by
the taxpayer’s foreign tax credit limi- ownership to the taxpayer corporation
tation under section 904, for example, and engaging in activities related to
the taxpayer’s deduction for state in- the business of the taxpayer corpora-
come tax will be considered definitely tion. Example 30 of paragraph (g) of
140
this section illustrates the application portioned to the state under a formula
of this last rule. that does not take into account the
(ii) Methods of allocation and appor- factors of the corporations paying
tionment—(A) In general. A taxpayer’s those dividends, regardless of whether
deduction for a state income tax is to the taxpayer uses the methodology of
be allocated (and then apportioned, if Example 25 with respect to the remain-
necessary, subject to the rules of der of the deduction for state income
§ 1.861–8(d)) by reference to the taxable taxes.
income that the law of the taxing juris- (2) Modifications. Before applying a
diction attributes to the taxpayer method of allocation and apportion-
(‘‘state taxable income’’). ment illustrated in the examples, the
(B) Effect of subsequent recomputations computation of state taxable income
of state income tax. [Reserved] under state law may be modified, sub-
(C) Illustrations—(1) In general. Exam- ject to the approval of the District Di-
ples 25 through 32 of paragraph (g) of rector, to reflect more accurately the
§ 1.861–8 illustrate, in the given factual income with respect to which the state
situations, the application of this para- income tax is imposed. Any modifica-
graph (e)(6) and the general rule of tion to the state law computation of
paragraph (b)(1) of this section that a
state taxable income must yield an al-
deduction must be allocated to the
location and apportionment of the de-
class of gross income to which the de-
duction for state income taxes that is
duction is factually related. In general,
consistent with the rules contained in
these examples employ a presumption
this paragraph (e)(6), and that accu-
that state income taxes are allocable
to a class of gross income that includes rately reflects the factual relationship
the statutory grouping of income from between the state income tax and the
sources without the United States income on which that tax is imposed.
when the total amount of taxable in- For example, a modification to the
come determined under state law ex- computation of taxable income under
ceeds the amount of taxable income de- state law might be appropriate to com-
termined under the Code (without tak- pensate for differences between the
ing into account the deduction for state law definition of taxable income
state income taxes) in the residual and the federal definition of taxable in-
grouping of income from sources with- come, due to a difference in the rate of
in the United States. A taxpayer that allowable depreciation or the amount
allocates and apportions the deduction of another deduction that is allowable
for state income tax in accordance under both systems. This rule is illus-
with the methodology of Example 25 of trated in Example 31 of paragraph (g)
paragraph (g) of this section must also of this section. However, a modifica-
apply the modifications illustrated in tion to the computation of taxable in-
Examples 26 and 27 of paragraph (g) of come under state law will not be appro-
this section, when applicable. The priate, and will not more accurately re-
modification illustrated in Example 26 flect the factual relationship between
is applicable when the deduction for the state tax and the income on which
state income tax is attributable in part the tax is imposed, to the extent such
to taxes imposed by a state which fac- modification reflects the fact that the
tually excludes foreign source income state does not follow federal tax prin-
(as determined for federal income tax ciples in attributing income to the tax-
purposes) from state taxable income. payer’s activities in the state. This
The modification illustrated in Exam- rule is illustrated in Example 32 of
ple 27 is applicable when the taxpayer paragraph (g) of this section. A tax-
has income-producing activities in a payer may not modify the methods il-
state which does not impose a cor- lustrated in the examples, or use an al-
porate income tax. The specific alloca- ternative method of allocation and ap-
tion of state income tax illustrated in portionment of the deduction for state
Example 28 follows the rule in para- income taxes, if the modification or al-
graph (e)(6)(i) of this section, and must ternative method would be incon-
be applied whenever a taxpayer’s state sistent with the rules of paragraph
taxable income includes dividends ap- (e)(6)(i) of this section. A taxpayer that
141
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
uses a method of allocation and appor- appropriate portion of the deduction to

tionment other than one illustrated in a class of gross income consisting sole-
Example 25 (as modified by Examples ly of foreign source portfolio dividends.
26 and 27), or 29 with respect to a fac- The portion of the deduction so allo-
tual situation similar to those of the cated, and the amount of foreign
examples, must describe the alter- source portfolio dividends included in
native method on an attachment to its such class, shall be determined in ac-
federal income tax return and establish cordance with the methodology illus-
to the satisfaction of the District Di- trated in paragraph (ii) of Example 28
rector, upon examination, that the re- of paragraph (g). If a state income tax
sult of the alternative method more ac- is determined based upon formulary ap-
curately reflects the factual relation- portionment of the total taxable in-
ship between the state income tax and come attributable to the taxpayer’s
the income on which the tax is im- unitary business, the taxpayer must
posed. also apply the methodology illustrated
(D) Elective safe harbor methods. (1) In in paragraph (ii) (C) through (G) of Ex-
general. In lieu of applying the rules set ample 29 of paragraph (g) of this sec-
forth in paragraphs (e)(6)(ii) (A) tion to make specific allocations of ap-
through (C) of this section, a taxpayer propriate portions of the deduction for
may elect to allocate and apportion the state income tax on the basis of income
deduction for state income tax in ac- that, under separate accounting, would
cordance with one of the two safe har- have been attributed to other members
bor methods described in paragraph
of the unitary group. The taxpayer
(e)(6)(ii)(D) (2) and (3) of this section. A
shall reduce its aggregate state taxable
taxpayer shall make this election for a
income by the amount of foreign
taxable year by filing a timely tax re-
source portfolio dividends and other in-
turn for that year that reflects an allo-
come to which a specific allocation is
cation and apportionment of the deduc-
made (the reduced amount being re-
tion for state income tax under one of
ferred to hereinafter as ‘‘adjusted state
the safe harbor methods and attaching
taxable income’’).
to such return a statement that the
taxpayer has elected to use the safe (ii) Step Two—Adjustment of U.S.
harbor method provided in either para- source federal taxable income. If the tax-
graph (e)(6)(ii)(D) (2) or (3) of this sec- payer has significant income-producing
tion, as appropriate. Once made, this activities in a state which does not im-
election is effective for the taxable pose a corporate income tax or other
year for which made and all subsequent state tax measured by income derived
taxable years, and may be revoked only from business activities in the state,
with the consent of the Commissioner. the taxpayer shall reduce its U.S.
Example 33 of paragraph (g) of this sec- source federal taxable income (solely
tion illustrates the application of these for purposes of this safe harbor meth-
safe harbor methods. od) by the amount of federal taxable
(2) Method One. (i) Step One—Specific income attributable to its activities in
allocation to foreign source portfolio divi- such state. This amount shall be deter-
dends and other income. If any portion mined in accordance with the method-
of the deduction for state income tax is ology illustrated in paragraph (ii) of
attributable to tax imposed by a state Example 27 of paragraph (g) of this sec-
which includes in a corporate tax- tion, provided that the taxpayer shall
payer’s taxable income apportionable be required to use the rules of the Uni-
to the state, portfolio dividends (as de- form Division of Income for Tax Pur-
fined in paragraph (i) of Example 28 of poses Act to attribute income to the
paragraph (g) of this section) that are relevant state. The taxpayer’s U.S.
treated under section 862(a)(2) as in- source federal taxable income, as so re-
come from sources without the United duced, is referred to hereinafter as ‘‘ad-
States, but does not include factors of justed U.S. source federal taxable in-
the corporations paying the portfolio come.’’
dividends in the apportionment for- (iii) Step Three—Allocation. The tax-
mula used to determine state taxable payer shall allocate the remainder of
income, the taxpayer shall allocate an the deduction for state income tax
142
(after reduction by the portion allo- One) in accordance with the method-
cated to foreign source portfolio divi- ology illustrated in paragraph (ii) of
dends and other income under Step Example 25 of paragraph (g) of this sec-
One) in accordance with the method- tion. However, the taxpayer shall sub-
ology illustrated in paragraph (ii) of stitute for the comparison of aggregate
Example 25 of paragraph (g) of this sec- state taxable income to U.S. source
tion. However, the taxpayer shall sub- federal taxable income, illustrated in
stitute for the comparison of aggregate paragraph (ii) of Example 25 of para-
state taxable income to U.S. source graph (g) of this section, a comparison
federal taxable income, illustrated in of its adjusted state taxable income to
paragraph (ii) of Example 25 of para- its adjusted U.S. source federal taxable
graph (g) of this section, a comparison income.
of its adjusted state taxable income to (iv) Step Four—Apportionment. In the
an amount equal to 110% of its ad- event that apportionment of the deduc-
justed U.S. source federal taxable in- tion is required, the taxpayer shall ap-
come. portion to U.S. source income that por-
(iv) Step Four—Apportionment. In the tion of the deduction that is attrib-
event that apportionment of the re- utable to state income taxes imposed
mainder of the deduction for state in- upon an amount of state taxable in-
come tax is required, the taxpayer come equal to adjusted U.S. source fed-
shall apportion that remaining deduc- eral taxable income. The taxpayer
tion to U.S. source income in accord- shall apportion the remaining amount
ance with the methodology illustrated of the deduction to U.S. and foreign
in paragraph (iii) of Example 25 of source income in the same proportions
paragraph (g) of this section, sub- that the taxpayer’s adjusted U.S.
stituting for domestic source income in source federal taxable income and for-
that paragraph an amount equal to eign source federal taxable income
110% of the taxpayer’s adjusted U.S. (after reduction by the amount of for-
source federal taxable income. The re- eign source portfolio dividends to
maining portion of the deduction shall which tax has been specifically allo-
be apportioned to the statutory cated under Step One, above) bear to
groupings of foreign source income de- its total federal taxable income (taking
scribed in section 904(d) of the Code in into account the adjustment of U.S.
accordance with the proportion of the source federal taxable income under
income in each statutory grouping of Step Two and after reduction by the
foreign source income described in sec- amount of foreign source portfolio divi-
tion 904(d) to the taxpayer’s total for- dends to which tax has been specifi-
eign source federal taxable income cally allocated under Step One). The
(after reduction by the amount of for- portion of the deduction apportioned to
eign source portfolio dividends to foreign source income shall be appor-
which tax has been specifically allo- tioned among the statutory groupings
cated under Step One, above). described in section 904(d) of the Code
(3) Method Two. (i) Step One—Specific in accordance with the proportions of
allocation to foreign source portfolio divi- the taxpayer’s total foreign source fed-
dends and other income. Step One of this eral taxable income (after reduction by
method is the same as Step One of the amount of foreign source portfolio
Method One (as described in paragraph dividends to which tax has been specifi-
(e)(6)(ii)(D)(2)(i) of this section). cally allocated under Step One, above)
(ii) Step Two—Adjustment of U.S. in each grouping.
source federal taxable income. Step Two (iii) Effective dates. The rules of
of this method is the same as Step Two § 1.861–8(e)(6)(i) and the language pre-
of Method One (as described in para- ceding the examples in § 1.861–8(g) are
graph (e)(6)(ii)(D)(2)(ii) of this section). effective for taxable years beginning
(iii) Step Three—Allocation. The tax- after December 31, 1976. The rules of
payer shall allocate the remainder of § 1.861–8(e)(6)(ii) (other than § 1.861–
the deduction for state income tax 8(e)(6)(ii)(D)) and Examples 25 through
(after reduction by the portion allo- 32 of § 1.861–8(g) are effective for taxable
cated to foreign source portfolio divi- years beginning on or after January 1,
dends and other income under Step 1988. The rules of § 1.861–8(e)(6)(ii)(D)
143
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
and Example 33 of § 1.861–8(g) are effec- gross income. Apportionment will be

tive for taxable years ending after necessary where, for example, the class
March 12, 1991. At the option of the tax- of gross income to which the deduction
payer, however, the rules of § 1.861– is allocated consists of gross income
8(e)(6)(ii) (other than § 1.861– (such as royalties) attributable to an
8(e)(6)(ii)(D)) and Examples 25 through intangible asset used both within and
32 of § 1.861–8(g) may be applied with re- without the United States, or gross in-
spect to deductions for state taxes income (such as from sales or services)
curred in taxable years beginning be- attributable to a tangible asset used
fore January 1, 1988. both within and without the United
(7) Losses on the sale, exchange, or States.
other disposition of property—(i) Alloca- (iii) Allocation of loss recognized in tax-
tion. The deduction allowed for loss able years after 1986. See §§ 1.865–1T,
recognized on the sale, exchange, or 1.865–2, and 1.865–2T for rules regarding
other disposition of a capital asset or the allocation of certain loss recog-
property described in section 1231(b) nized in taxable years beginning after
shall be considered a deduction which December 31, 1986.
is definitely related and allocable to (8) Net operating loss deduction. [Re-
the class of gross income to which such served] For guidance, see § 1.861–
asset or property ordinarily gives rise 8T(e)(8).
in the hands of the taxpayer. Where the (9) Deductions which are not definitely
nature of gross income generated from related. Deductions which shall gen-
the asset or property has varied signifi- erally be considered as not definitely
cantly over several taxable years of the related to any gross income, and there-
taxpayer, such class of gross income fore are ratably apportioned as pro-
shall generally be determined by ref- vided in paragraph (c)(2) of this sec-
erence to gross income generated from tion, are—
the asset or property during the tax-
(i) The deduction allowed by section
able year or years immediately pre-
163 for interest described in subpara-
ceding the sale, exchange, or other
graph (2)(iii) of this paragraph (e);
dispostion of such asset or property.
Thus, for example, where an asset gen- (ii) The deduction allowed by section
erates primarily sales income from do- 164 for real estate taxes on a personal
mestic sources in the early years of its residence or for sales tax on the pur-
operation and then is leased by the tax- chase of items for personal use;
payer to a foreign subsidiary in later (iii) The deduction for medical ex-
years, the class of gross income to penses allowed by section 213;
which the asset gives rise will be con- (iv) The deduction for charitable con-
sidered to be the rental income derived tributions allowed by sections 170,
from the lease and will not include 873(b)(2), and 882(c)(1)(B); and
sales income from domestic sources. (v) The deduction for alimony pay-
(ii) Apportionment of losses. Where in ments allowed by section 215.
the unusual circumstances that an ap- (10) Special deductions. The special de-
portionment of a deduction for losses ductions allowed in the case of a cor-
on the sale, exchange, or other disposi- poration by section 241 (relating to the
tion of a capital asset or property de- deductions for partially tax exempt in-
scribed in section 1231(b) is necessary, terest, dividends received, etc.), section
the amount of such deduction shall be 922 (relating to Western Hemisphere
apportioned between the statutory trade corporations), and section 941 (re-
grouping (or among the statutory lating to China Trade Act corpora-
groupings) of gross income (within the tions) shall be allocated and appor-
class of gross income) and the residual tioned consistent with the principles of
grouping (within the class of gross in- this section.
come) in the same proportion that the (11) Personal exemptions. The deduc-
amount of gross income within such tions for the personal exemptions al-
statutory grouping (or statutory lowed by section 151, 642(b), or 873(b)(3)
groupings) and such residual grouping shall not be taken into account for pur-
bear, respectively, to the total amount pose of allocation and apportionment
of gross income within the class of under this section.
144
(f) Miscellaneous matters—(1) Operative lated supplier derived from sales and
sections. The operative sections of the leases of export property and from
Code which require the determination services. In the FSC context, the tax-
of taxable income of the taxpayer from able income of the FSC equals 23 per-
specific sources or activities and which cent of the combined taxable income of
give rise to statutory groupings to the FSC and the related supplier. Pur-
which this section is applicable include suant to regulations under section 925
the sections described below. and 994, this section provides rules for
(i) Overall limitation to the foreign tax determining the deductions to be taken
credit. Under the overall limitation to into account in determining combined
the foreign tax credit, as provided in taxable income, except to the extent
section 904(a)(2) (as in effect before en- modified by the marginal costing rules
actment of the Tax Reform Act of 1976, set forth in the regulations under sec-
or section 904(a) after such enactment) tions 925(b)(2) and 994(b)(2) if used by
the amount of the foreign tax credit the taxpayer. See Examples (22) and (23)
may not exceed the tentative U.S. tax of paragraph (g) of this section. In ad-
(i.e., the U.S. tax before application of dition, the computation of combined
the foreign tax credit) multiplied by a taxable income is necessary to deter-
fraction, the numerator of which is the mine the applicability of the section
taxable income from sources without 925(d) limitation and the ‘‘no loss’’
the United States and the denominator rules of the regulations under sections
of which is the entire taxable income. 925 and 994.
Accordingly, in this case, the statutory
(iv) Effectively connected taxable in-
grouping is foreign source income (in-
come. Nonresident alien individuals and
cluding, for example, interest received
foreign corporations engaged in trade
from a domestic corporation which
meets the tests of section 861(a)(1)(B), or business within the United States,
dividends received from a domestic cor- under sections 871(b)(1) and 882(a)(1), on
poration which has an election in effect taxable income which is effectively
under section 936, and other types of connected with the conduct of a trade
income specified in section 862). Pursu- or business within the United States.
ant to sections 862(b) and 863(a) and Such taxable income is determined in
§§ 1.862–1 and 1.863–1, this section pro- most instances by initially deter-
vides rules for identifying the deduc- mining, under section 864(c), the
tions to be taken into account in deter- amount of gross income which is effec-
mining taxable income from sources tively connected with the conduct of a
without the United States. See section trade or business within the United
904(d) (as in effect after enactment of States. Pursuant to sections 873 and
the Tax Reform Act of 1976) and the 882(c), this section is applicable for
regulations thereunder which require purposes of determining the deductions
separate treatment of certain types of from such gross income (other than the
income. See example 3 of paragraph (g) deduction for interest expense allowed
of this section for one example of the to foreign corporations (see § 1.882–5))
application of this section to the over- which are to be taken into account in
all limitation. determining taxable income. See exam-
(ii) [Reserved] ple 21 of paragraph (g) of this section.
(iii) DISC and FSC taxable income. (v) Foreign base company income. Sec-
Sections 925 and 994 provide rules for tion 954 defines the term ‘‘foreign base
determining the taxable income of a company income’’ with respect to con-
FSC and DISC, respectively, with re- trolled foreign corporations. Section
spect to qualified sales and leases of 954(b)(5) provides that in determining
export property and qualified services. foreign base company income the gross
The combined taxable income method income shall be reduced by the deduc-
available for determining a DISC’s tax- tions of the controlled foreign corpora-
able income provides, without consid- tion ‘‘properly allocable to such in-
eration of export promotion expenses, come’’. This section provides rules for
that the taxable income of the DISC identifying which deductions are prop-
shall be 50 percent of the combined tax- erly allocable to foreign base company
able income of the DISC and the re- income.
145
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
(vi) Other operative sections. The rules (ii) When expenses, losses, and other
provided in this section also apply in deductions that have been properly al-
determining— located and apportioned between com-
(A) The amount of foreign source bined gross income of a related sup-
items of tax preference under section plier and a DISC or former DISC and
58(g) determined for purposes of the residual gross income, regardless of
minimum tax; which of the administrative pricing
(B) The amount of foreign mineral in- methods of section 994 has been ap-
come under section 901(e); plied, such deductions are not also allo-
(C) [Reserved] cated and apportioned to gross income
(D) The amount of foreign oil and gas consisting of distributions from the
extraction income and the amount of DISC or former DISC attributable to
foreign oil related income under sec- income of the DISC or former DISC as
tion 907; determined under the administrative
(E) The tax base for citizens entitled pricing methods with respect to DISC
to the benefits of section 931 and the or former DISC taxable years begin-
section 936 tax credit of a domestic cor- ning after December 31, 1986. Accord-
poration which has an election in effect ingly, Example (22) of paragraph (g) of
under section 936; this section does not apply to distribu-
(F) The exclusion for income from tions from a DISC or former DISC with
Puerto Rico for residents of Puerto respect to DISC or former DISC taxable
Rico under section 933;
years beginning after December 31,
(G) The limitation under section 934
1986. This rule does not apply to the ex-
on the maximum reduction in income
tent that the taxable income of the
tax liability incurred to the Virgin Is-
DISC or former DISC is determined
lands;
under the section 994(a)(3) transfer
(H) The income derived from Guam
by an individual who is subject to sec- pricing method. In addition, for taxable
tion 935; years beginning after December 31,
(I) The special deduction granted to 1986, in the case of expenses, losses, and
China Trade Act corporations under other deductions that have been prop-
section 941; erly allocated and apportioned between
(J) The amount of certain U.S. source combined gross income of a related
income excluded from the subpart F in- supplier and a FSC and residual gross
come of a controlled foreign corpora- income, regardless of which of the ad-
tion under section 952(b); ministrative pricing methods of sec-
(K) The amount of income from the tion 925 has been applied, such deduc-
insurance of U.S. risks under section tions are not also allocated and appor-
953(b)(5); tioned to gross income consisting of
(L) The international boycott factor distributions from the FSC or former
and the specifically attributable taxes FSC which are attributable to the for-
and income under section 999; and eign trade income of the FSC or former
(M) The taxable income attributable FSC as determined under the adminis-
to the operation of an agreement vessel trative pricing methods. This rule does
under section 607 of the Merchant Ma- not apply to the extent that the for-
rine Act of 1936, as amended, and the eign trade income of the FSC or former
Capital Construction Fund Regulations FSC is determined under the section
thereunder (26 CFR, part 3). See 26 CFR 925(a)(3) transfer pricing method. See
3.2(b)(3). Example (23) of paragraph (g) of this
(2) Application to more than one opera- section.
tive section. (i) Where more than one op- (3) Special rules of section 863(b)—(i) In
erative section applies, it may be nec- general. Special rules under section
essary for the taxpayer to apply this 863(b) provide for the application of
section separately for each applicable rules of general apportionment pro-
operative section. In such a case, the vided in §§ 1.863–3 to 1.863–5, to world-
taxpayer is required to use the same wide taxable income in order to at-
method of allocation and the same tribute part of such worldwide taxable
principles of apportionment for all op- income to U.S. sources and the remain-
erative sections. der of such worldwide taxable income
146
to foreign sources. The activities speci- and apportionments required by this

fied in section 863(b) are— section in order to reflect changes re-
(A) Transportation or other services sulting from the adjustment. The re-
rendered partly within and partly with- computation made by the District Di-
out the United States, rector shall be made using the same
(B) Sales of personal property pro- method of allocation and apportion-
duced by the taxpayer within and sold ment as was originally used by the tax-
without the United States, or produced payer, provided such method as origi-
by the taxpayer without and sold with- nally used conformed with paragraph
in the United States, and (a)(5) of this section and, in light of the
(C) Sales within the United States of adjustment, such method does not re-
personal property purchased within a sult in a material distortion. In addi-
possession of the United States. tion to adjustments which would be
In the instances provided in §§ 1.863–3 made aside from this section, adjust-
and 1.863–4 with respect to the activi- ments to the taxpayer’s income and de-
ties described in (A), (B), and (C) of this ductions which would not otherwise be
subdivision, this section is applicable made may be required before applying
only in determining worldwide taxable this section in order to prevent a dis-
income attributable to these activities. tortion in determining taxable income
(ii) Relationship of sections 861, 862, from a particular source of activity.
863(a), and 863(b). Sections 861, 862, For example, if an item included as a
863(a), and 863(b) are the four provi- part of the cost of goods sold has been
sions applicable in determining taxable improperly attributed to specific sales,
income from specific sources. Each of and, as a result, gross income under
these four provisions applies independ- one of the operative sections referred
ently. Where a deduction has been allo- to in paragraph (f)(1) of this section is
cated and apportioned to income under improperly determined, it may be nec-
one of these four provisions, the deduc- essary for the District Director to
tion shall not again be allocated and make an adjustment to the cost of
apportioned to gross income under any goods sold, consistent with the prin-
of the other three provisions. However, ciples of this section, before applying
two or more of these provisions may this section. Similarly, if a domestic
have to be applied at the same time to corporation transfers the stock in its
determine the proper allocation and foreign subsidiaries to a domestic sub-
apportionment of a deduction. The spe- sidiary and the parent continues to
cial rules under section 863(b) take incur expenses in connection with the
precedence over the general rules of supervision of the foreign subsidiaries
Code sections 861, 862 and 863(a). For (see paragraph (e)(4) of this section), it
example, where a deduction is allocable may be necessary for the District Di-
in whole or in part to gross income to rector to make an allocation under sec-
which section 863(b) applies, such de- tion 482 with respect to such expenses
duction or part thereof shall not other- before making allocations and appor-
wise be allocated under section 861, 862, tionments required by this section,
or 863(a). However, where the gross in- even though the section 482 allocation
come to which the deduction is allo- might not otherwise be made.
cable includes both gross income to (ii) Example. X, a domestic corpora-
which section 863(b) applies and gross tion, purchases and sells consumer
income to which section 861, 862, or items in the United States and foreign
863(a) applies, more than one section markets. Its sales in foreign markets
must be applied at the same time in are made to related foreign subsidi-
order to determine the proper alloca- aries. X reported $1,500,000 as sales dur-
tion and apportionment of the deduc- ing the taxable year of which $1,000,000
tion. was domestic sales and $500,000 was for-
(4) Adjustments made under other provi- eign sales. X took a deduction for ex-
sions of the Code—(i) In general. If an penses incurred by its marketing de-
adjustment which affects the taxpayer partment during the taxable year in
is made under section 482 or any other the amount of $150,000. These expenses
provision of the Code, it may be nec- were determined to be allocable to
essary to recompute the allocations both domestic and foreign sales and are
147
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
apportionable between such sales. taxpayer shall make available any of

Thus, X allocated and apportioned the its organization charts, manuals, and
marketing department deduction as other writings which relate to the
follows: manner in which its gross income
To gross income from domestic sales: arises and to the functions of organiza-
$150,000×($1,000,000/$1,500,000) ................... $100,000 tional units, employees, and assets of
To gross income from foreign sales:
$150,000×($500,000/$1,500,000) ...................... 50,000 the taxpayer and arrange for the inter-
view of such of its employees as the
Total ............................................................ 150,000 District Director deems desirable in
On audit of X’s return for the taxable year, order to determine the gross income to
the District Director adjusted, under section which deductions relate. See section
482, X’s sales to related foreign subsidiaries 7602 and the regulations thereunder
by increasing the sales price by a total of which generally provide for the exam-
$100,000, thereby increasing X’s foreign sales ination of books and witnesses. See
and total sales by the same amount. As a re-
sult of the section 482 adjustment, the appor-
also section 905(b) and the regulations
tionment of the deduction for the marketing thereunder which require proof of for-
department expenses is redetermined as fol- eign tax credits to the satisfaction of
lows: the Secretary or his delegate.
To gross income from domestic sales: (g) General examples. The following
$150,000×($1,000,000/$1,600,000) ..................... $93,750 examples illustrate the principles of
To gross income from foreign sales:
$150,000×($600,000/$1,600,000) 56,250 this section. In each example, unless
otherwise specified, the operative sec-
Total .............................................................. 150,000 tion which is applied and gives rise to
(5) Verification of allocations and ap- the statutory grouping of gross income
portionments. Since, under this section, is the overall limitation to the foreign
allocations and apportionments are tax credit under section 904(a). In addi-
made on the basis of the factual relation, in each example, where a method
tionship between deductions and gross of allocation or apportionment is illus-
income, the taxpayer is required to fur- trated as an acceptable method, it is
nish, at the request of the District Di- assumed that such method is used by
rector, information from which such the taxpayer on a consistent basis from
factual relationships can be deter- year to year (except in the case of the
mined. In reviewing the overall limita- optional method for apportioning re-
tion to the foreign tax credit of a do- search and development expense under
mestic corporation, for example, the paragraph (e)(3)(iii) of § 1.861–8). Fur-
District Director should consider infor- ther, it is assumed that each party
mation which would enable him to de- named in each example operates on a
termine the extent to which deductions calendar year accounting basis and,
attributable to functions performed in where the party is a U.S. taxpayer,
the United States are related to earn- files returns on a calendar year basis.
ing foreign source income, United Examples 1—16 —[Reserved]
States source income, or income from Example 17— Stewardship Expenses (Consoli-
both sources. In addition to functions dation)—(i) Facts. X, a domestic corporation,
with a specific international purpose, wholly owns M, N, and O, also domestic cor-
consideration should be given to the porations. X, M, N, and O file a consolidated
functions of management, the direc- income tax return. All the income of X and
tion and results of an acquisition pro- O is from sources within the United States,
all of M’s income is from sources within
gram, the functions of operating units South America, and all of N’s income is from
and personnel located at the head of- sources within Africa. X receives no divi-
fice, the functions of support units (in- dends from M, N, or O. During the taxable
cluding but not limited to engineering, year, the consolidated group of corporations
legal, budget, accounting, and indus- earned consolidated gross income of $550,000
trial relations), the functions of selling and incurred total deductions of $370,000 as
and advertising units and personnel, follows:
the direction and uses of research and Gross income Deductions
development and the direction and uses
of services furnished by independent Corporations:
X ......................................... $100,000 $50,000
contractors. Thus, for example when M ........................................ 250,000 100,000
requested by the District Director, the N ........................................ 150,000 200,000
148
Gross income Deductions tively. Each corporation derives substantial

net income during the taxable year. X’s
O ........................................ 50,000 20,000 gross income for the taxable year consists of:
Total ............................... 550,000 370,000 Domestic sales income ...................................... $32,000,000
Dividends from S (before dividends received
deduction) ....................................................... 3,000,000
Of the $50,000 of deductions incurred by X, Dividends from T ............................................... 2,000,000
$15,000 relates to X’s ownership of M; $10,000 Dividends from U ............................................... 1,000,000
relates to X’s ownership of N; $5,000 relates Dividends from V ............................................... 0
to X’s ownership of O; and the entire $30,000 Royalties from T and U ..................................... 1,000,000
constitute stewardship expenses. The re- Fees from U for services performed in the
United States .................................................. 1,000,000
mainder of X’s deductions ($20,000) relates to
production of income from its plant in the Total gross income ................................. 40,000,000
United States. Among other deductions, X incurs the fol-
(ii) Allocation. In accordance with § 1.1502–4, lowing:
each corporation must first compute its sep- Expenses of supervision department ......... 1,600,000
arate taxable income for purposes of com- Charitable contributions .............................. 100,000
puting the limitation on the foreign tax
credit. X’s deductions of $50,000 are definitely X’s Supervision Department (the Depart-
related and thus allocable to the types of ment) is responsible for the supervision of its
gross income to which they give rise, namely four subsidiaries and for rendering certain
$25,000 wholly to income from sources out- services to the subsidiaries, and this Depart-
side the United States ($15,000 for steward- ment provides all the supportive functions
ship of M and $10,000 for stewardship of N) necessary for X’s foreign activities. The De-
and the remainder ($25,000) wholly to gross partment performs three principal types of
income from sources within the United activities. The first type consists of services
States. Expenses incurred by M and N are en- for the direct benefit of U for which a fee is
tirely related and thus wholly allocable to paid by U to X. The cost of the services for
income earned from sources without the U is $1,000,000. The second type consists of
United States and expenses incurred by O are stewardship activities which are in the na-
entirely related and thus wholly allocable to ture of a management review and generally
income earned within the United States. duplicate functions performed by the sub-
Hence, no apportionment of expenses of X, sidiaries’ own employees (and are, therefore,
M, N, or O is necessary. For purposes of ap- of a type described in § 1.482–2(b)(2)(ii) which
plying the overall limitation, the statutory would not be subject to an allocation under
grouping is gross income from sources with- section 482). For example, a team of auditors
out the United States and the residual from X’s accounting department periodically
grouping is gross income from sources within audits the subsidiaries’ books and prepares
the United States. As a result of the alloca- internal reports for use by X’s management.
tion of deductions, X, M, and N have sepa- Similarly, X’s treasurer periodically reviews
rate taxable income (losses) from sources for the board of directors of X the subsidi-
without the United States in the amounts of aries’ financial policies. The cost of the du-
($25,000), $150,000, and ($50,000), respectively, plicative services and related supportive ex-
computed as follows: penses is $540,000. The third type of activity
consists of providing services which are an-
X M N cillary to the license agreements which X
maintains with subsidiaries T and U. The
Foreign gross income .... .............. $250,000 $150,000 cost of the ancillary services is $60,000.
Less: Deductions allo-
(ii) Allocation. The Department’s outlay of
cable to foreign gross
income ....................... $25,000 100,000 200,000 $1,000,000 is the basis for the charge to U for
services rendered, and therefore $1,000,000 is
Total, taxable in- allocated to the fees paid by U. The remain-
come (loss) ............. (25,000) 150,000 (50,000) ing $600,000 in the Department’s deductions
are definitely related to the types of gross
Thus, in the combined computation of the income to which they give rise, namely divi-
overall limitation, the numerator of the lim- dends from subsidiaries S, T, U and V and
iting fraction (taxable income from sources royalties from t and U. However, $60,000 of
outside the United States) is $75,000 ($150,000 the $600,000 in deductions are found to be at-
of separate taxable income of M less $50,000 tributable to the ancillary serivces and are
of losses of N and less $25,000 of losses of X). definitely related (and therefore allocable)
Example 18— Stewardship and Supportive Ex- solely to royalties received from T and U,
penses—(i) Facts. X, a domestic corporation, while the remaining $540,000 in deductions
manufactures and sells pharmaceuticals in are definitely related (and therefore allo-
the United States. X’s domestic subsidiary S, cable) to dividends received from all the sub-
and X’s foreign subsidiaries T, U, and V per- sidiaries.
form similar functions in the United States (iii) Apportionment. For purposes of apply-
and foreign countries T, U, and V, respec- ing the overall limitation, the statutory
149
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
grouping is gross income from sources out- During the taxable year, X incurs the fol-
side the United States and the residual lowing expenses with respect to its world-
grouping is gross income from sources within wide activities:
the United States. X’s deduction of $540,000 Personnel department expenses ......................... $50,000
for the Supervision Department expenses and Training department expenses ............................ 35,000
related supportive expenses which is allo- General and administrative expenses ................. 55,000
cable to dividends received from the subsidi- President’s salary ................................................ 40,000
aries must be apportioned between the statu- Sales manager’s salary ....................................... 20,000
tory and residual groupings before the over-
all limitation may be applied. In deter- Total .......................................................... 200,000
mining an appropriate method for appor-
tioning the $540,000, a basis other than X’s X has domestic gross receipts from sales of
gross income must be used since the dividend $750,000 and foreign gross receipts from sales
payment policies of the subsidiaries bear no of $500,000 and has gross income from such
relationship either to the activities of the sales in the same ratio, namely $300,000 from
Department or to the amount of income domestic sources and $200,000 from foreign
earned by each subsidiary. This is evidenced sources.
by the fact that V paid no dividends during (ii) Allocation. The above expenses are defi-
the year, whereas S, T, and U paid dividends nitely related and allocable to all of X’s
of $1 million or more each. In the absence of gross income derived from both domestic and
facts that would indicate a material distor- foreign markets.
tion resulting from the use of such method, (iii) Apportionment. For purposes of apply-
the stewardship expenses ($540,000) may be ing the overall limitation, the statutory
apportioned on the basis of the gross receipts grouping is gross income from sources out-
of each subsidiary. side the United States and the residual
The gross receipts of the subsidiaries were as grouping is gross income from sources within
follows: the United States. X’s deductions for its
S ................................................................. $4,000,000
T .................................................................. 3,000,000
worldwide sales activities must be appor-
U ................................................................. 500,000 tioned between these groupings. Company X
V ................................................................. 1,500,000 in this example (unlike Company X in exam-
ple 18) does not have a separate international
Total ........................................................ 9,000,000 division which performs essentially all of the
Thus, the expenses of the Department are functions required to manage and oversee its
apportioned for purposes of the overall limi- foreign activities. The president and sales
tation as follows: manager do not maintain time records. The
Apportionment of stewardship expenses to the division of their time between domestic and
statutory grouping of gross income: foreign activities varies from day to day and
540,000×[($3,000,000+$500,000+ cannot be estimated on an annual basis with
$1,500,000)/ $9,000,000] ................................. $300,000 any reasonable degree of accuracy. Simi-
Apportionment of supervisory expenses to the larly, there are no facts which would justify
residual grouping of gross income: a method of apportionment of their salaries
$540,000×$4,000,000/9,000,000 ..................... 240,000
or of one of the other listed deductions based
Total: Apportioned stewardship expense $540,000 on more specific factors than gross receipts
or gross income. An acceptable method of ap-
(iv) Allocation and apportionment of chari- portionment would be on the basis of gross
table contributions. Pursuant to paragraph receipts. The apportionment of the $200,000
(e)(9) of this section, charitable contribu- deduction is as follows:
tions are generally treated as deductions Apportionment of the $200,000 expense to the
which are not definitely related to any gross statutory grouping of gross income:
income and are, accordingly, apportioned $200,000×[$500,000/($500,000+$750,000)] .... $80,000
ratably on the basis of gross income for pur- Apportionment of the $200,000 expense to the
poses of the overall limitation as follows: residual grouping of gross income:
Apportionment of charitable contributions to the $200,000×[$750,000/($500,000+$750,000)] .... 120,000
statutory grouping of gross income:
$100,000×[($2,000,000 + $1,000,000 + Total apportioned supportive expense ......... 200,000
$1,000,000)/$40,000,000] ................................ $10,000
Example 20— Supportive Expense—(i) Facts.
Apportionment of charitable contributions to the
residual grouping of gross income: Assume the same facts as above except that
$100,000×[($32,000,000 + $3,000,000 + X’s president devotes only 5 percent of his
$1,000,000)/$40,000,000] ................................ 90,000 time to the foreign operations and 95 percent
of his time to the domestic operations and
Total apportioned charitable contributions 100,000 that X’s sales manager devotes approxi-
Example 19— Supportive Expense—(i) Facts. mately 10 percent of his time to foreign sales
X, a domestic corporation, purchases and and 90 percent of his time to domestic sales.
sells products both in the United States and (ii) Allocation. The expenses incurred by X
in foreign countries. X has no foreign sub- with respect to its worldwide activities are
sidiary and no international department. definitely related, and therefore allocable to
150
X’s gross income from both its foreign and not effectively connected with a U.S. trade
domestic markets. or business.
(iii) Apportionment. On the basis of the ad- (iii) Apportionment Since X is a foreign cor-
ditional facts it is not acceptable to appor- poration, the statutory grouping is gross in-
tion the salaries of the president and the come effectively connected with X’s trade of
sales manager on the basis of gross receipts. business in the United States, namely gross
It is acceptable to apportion such salaries income from sources within the United
between the statutory grouping (gross in- States, and the residual grouping is gross in-
come from sources without the United come not effectively connected with a trade
States) and residual grouping (gross income or business in the United States, namely
from sources within the United States) on gross income from countries A and B. Since
the basis of time devoted to each sales activ- there are no facts which would require a
ity. Remaining expenses may still be appor- method of apportionment other than on the
tioned on the basis of gross receipts. The ap- basis of sales or gross income, the amount
portionment is as follows: may be apportioned between the two
Apportionment of the $200,000 expense to the
groupings on the basis of amounts of gross
statutory grouping of gross income: income as follows:
President’s salary: $40,000×5 pct ................ $2,000 Apportionment of general and administrative ex-
Sales manager’s salary: $20,000×10 pct ..... 2,000 pense to the statutory grouping, gross income
Remaining expenses: $140,000×[$500,000/ from sources within the United States:
($500,000+$750,000)] ............................... 56,000 $100,000×[$200,000/($200,000 + $400,000 +
$400,000)] ........................................................ $20,000
Subtotal: Apportionment of expense to Apportionment of general and administrative ex-
statutory grouping .............................. 60,000 pense to the residual grouping, gross income
from sources without the United States:
Apportionment of the $200,000 expense to the $100,000×[($400,000 + $400,000)/($200,000
residual grouping of gross income: + $400,000 + $400,000)] ................................. 80,000
President’s salary: $40,000×95 pct .............. 38,000
Total apportioned general and adminis-
Sales manager’s salary: $20,000×90 pct ..... 18,000
trative expense .................................. 100,000
Remaining expenses: $140,000×[$750,000/
($500,000+$750,000)] ............................... 84,000 Example 22— Domestic International Sales
Corporations—(i) Facts. X, a domestic cor-
Subtotal: Apportionment of expense to poration, manufactures a line of kitchenware
residual grouping ............................... 140,000
and sells it to retailers in the United States,
Total: Apportioned general and admin- France, and the United Kingdom. After the
istrative expense ................................ 200,000 Domestic International Sales Corporation
(DISC) legislation was passed in 1971, X es-
Example 21— Supportive Expense—(i) Facts. tablished, as of January 1, 1972, a DISC and
X, a foreign corporation doing business in thereafter did all of its foreign marketing
the United States, is a manufacturer of through sales by the DISC. In 1977 the DISC
metal stamping machines. X has no United has total sales of $7,700,000 for which X’s cost
States subsidiaries and no separate division of goods sold is $6,000,000. Thus, the gross in-
to manage and oversee its business in the come attributable to exports through the
United States. X manufactures and sells DISC is $1,700,000 ($7,700,000¥$6,000,000).
these machines in the United States and in Moreover, X has U.S. domestic sales of
foreign countries A and B and has a separate kitchenware of $12,000,000 on which it earned
manufacturing facility in each country. gross income of $900,000, and X receives roy-
Sales of these machines are X’s only source alty income from the foreign license of its
of income. In 1977, X incurs general and ad- kitchenware technology in the amount of
ministrative expenses related to both its $800,000. The DISC’s expenses attributable to
U.S. and foreign operations of $100,000. It has the resale of export property are $400,000 of
machine sales of $500,000, $1,000,000 and which $300,000 qualify as export promotion
$1,000,000 on which it earns gross income of expenses. X also incurs $125,000 of general
$200,000, $400,000 and $400,000 in the United and administrative expenses in connection
States, country A, and country B, respec- with its domestic and foreign sales activi-
tively. The income from the manufacture ties, and its foreign licensing activities. X
and sale of the machines in countries A and and the DISC determine transfer prices
B is not effectively connected with X’s busi- charged on the basis of a single product
ness in the United States. grouping and the ‘‘50–50’’ combined taxable
(ii) Allocation. The $100,000 of general and income method (without marginal costing)
administrative expense is definitely related which permits the DISC to have a taxable in-
to the income to which it gives rise, namely come equal to 50 percent of the combined
a part of the gross income from sales of ma- taxable income attributable to the produc-
chines in the United States, in country A, tion and sales of the export property, plus 10
and in country B. The expenses are allocable percent of the DISC’s export promotion ex-
to this class of income, even though X’s penses.
gross income from sources outside the (ii) Allocation. For purposes of determining
United States is excluded income since it is combined taxable income of X and the DISC
151
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
from export sales, general and administra- 10 pct of export promotion expense of
tive expenses of $125,000 must be allocated to $300,000 ................................................... 30,000
and apportioned between gross income re-
Total DISC income ................................... 648,750
sulting from the production and sale of DISC income as a percentage of combined
kitchenware for export, and from the produc- taxable income ............................................. 52.4
tion and sale of kitchenware for the domes-
tic market. The deduction of $400,000 for ex- In the second stage, in the absence of more
penses attributable to the resale of export specific or contrary information, the general
property is allocated solely to gross income and administrative expense may also be ap-
from the production and sale of kitchenware portioned on the basis of gross income in the
in foreign markets. respective groupings. Since DISC taxable in-
(iii) Apportionment. Apportionment of ex- come is 52.4 percent of combined taxable in-
pense takes place in two stages. In the first come, DISC gross income is treated as 52.4
stage, for computing conbined taxable in- percent of the gross income from exports
come from the production and sale of export $1,700,000. The apportionment follows:
property, the general and administrative ex- Apportionment of general and administrative ex-
pense should be apportioned between the pense to the statutory grouping, DISC divi-
dends: $125,000×[(0.524×$1,700,000)/
statutory grouping of gross income from the
($1,700,000 + $900,000 + $800,000)] ............. $32,750
export of kitchenware and the residual Apportionment of general and administrative ex-
grouping of gross income from domestic pense to the statutory grouping, foreign roy-
sales and foreign licenses. In the second alty income: $125,000×[$800,000/($1,700,000
stage, since the limitation on the foreign tax + 900,000 + $800,000)] ................................... 29,412
credit requires the use of a separate limita- Apportionment of general and administrative ex-
tion with respect to dividends from a DISC pense to the residual grouping, gross income
from sources within the United States:
(section 904(d)), the general and administra-
$125,000×[($900,000 + (0.476 ×$1,700,000))/
tive expense should be apportioned between ($1,700,000 + $900,000 + $800,000)] ............. 62,838
two statutory groupings, DISC dividends and
foreign royalty income (for which the overall Total apportioned general and adminis-
limitation is used), and the residual grouping trative expense .................................. 125,000
of gross income from sales within the United (iv) This Example 22 applies only to DISC
States. In the first stage, in the absence of taxable years ending before January 1, 1987,
more specific or contrary information, the and to distributions from a DISC or former
general and administrative expense may be DISC with respect to DISC or former DISC
apportioned on the basis of gross income in taxable years ending before January 1, 1987.
the respective groupings, as follows: Example 23— [Reserved]
Apportionment of general and administrative ex- Example 24— [Reserved] For guidance, see
pense to the statutory grouping, gross income § 1.861–8T(g) Example 24.
from exports of kitchenware:
$125,000×[$1,700,000/($1,700,000 +
Example 25— Income Taxes—(i) Facts. X, a
$900,000 + $800,000)] ..................................... $62,500 domestic corporation, is a manufacturer and
Apportionment of general and administrative ex- distributor of electronic equipment with op-
pense to the residual grouping, gross income erations in states A, B, and C. X also has a
from domestic sales of kitchenware and for- branch in country Y which manufactures and
eign royalty income from licensing kitchen- distributes the same type of electronic
ware technology: $125,000×[($900,000 + equipment. In 1988, X has taxable income
$800,000)/($1,700,000 + $900,000 + from these activities, as described under the
$800,000)] ........................................................ 62,500
Code (without taking into account the de-
Total apportionment of general and admin- duction for state income taxes), of $1,000,000,
istrative expense ....................................... 125,000 of which $200,000 is foreign source general
limitation income subject to a separate limi-
On the basis of this apportionment, the com- tation under section 904(d)(1)(I) (‘‘general
bined taxable income, and the DISC portion limitation income’’) and $800,000 is domestic
of taxable income may be calculated as fol- source income. States A, B, and C each de-
lows: termine X’s income subject to tax within
Gross income from exports ..... $1,700,000 their state by making adjustments to X’s
Less: taxable income as determined under the
DISC expense for resale of Code, and then apportioning the adjusted
export property ................. 400,000 taxable income on the basis of the relative
Apportioned general and ad- amounts of X’s payroll, property, and sales
ministrative expense ......... 62,500 within each state as compared to X’s world-
wide payroll, property, and sales. The adjust-
$462,500
ments made by states A, B, and C all involve
Combined taxable income from production adding and subtracting enumerated items
and export of kitchenware ............................ 1,237,500 from taxable income as determined under
the Code. However, in making these adjust-
DISC income: ments to taxable income, none of the states
50 pct of combined taxable income ............. 618,750 specifically exempts foreign source income
152
as determined under the Code. On this basis, (ii) Allocation. X’s deduction of $69,000 for
it is determined that X has taxable income state income taxes is definitely related and
of $550,000, $200,000, and $200,000 in states A, thus allocable to the gross income with re-
B, and C, respectively. The corporate tax spect to which the taxes are imposed. Since
rates in states A, B, and C are 10 percent, 5 state A exempts all foreign source income by
percent, and 2 percent, respectively, and X statute, state A is presumed to impose tax
has total state income tax liabilities of on $550,000 of X’s $800,000 of domestic source
$69,000 ($55,000 + $10,000 + $4,000), which it de- income. X’s state A tax of $55,000 is allo-
ducts as an expense for federal income tax cable, therefore, solely to domestic source
purposes. income. Since the statutes of states B and C
(ii) Allocation. X’s deduction of $69,000 for do not specifically exclude all foreign source
state income taxes is definitely related and income as determined under the Code, and
thus allocable to the gross income with re- since states B and C impose tax on $400,000
spect to which the taxes are imposed. Since ($200,000 + $200,000) of X’s income of which
the statutes of states A, B, and C do not spe- only $250,000 ($800,000 ¥ $550,000) is presumed
cifically exempt foreign source income (as to be domestic source, the deduction for the
determined under the Code) from taxation $14,000 of income taxes imposed by states B
and since, in the aggregate, states A, B, and and C is related and allocable to both foreign
C tax $950,000 of X’s income while only source and domestic source income.
$800,000 is domestic source income under the (iii) Apportionment. (A) For purposes of
Code, it is presumed that state income taxes computing the foreign tax credit limitation,
are imposed on $150,000 of foreign source in- X’s income is comprised of one statutory
come. The deduction for state income taxes grouping, foreign source general limitation
is therefore related and allocable to both X’s gross income, and one residual grouping,
foreign source and domestic source income. gross income from sources within the United
(iii) Apportionment. For purposes of com- States. The deduction of $14,000 for income
puting the foreign tax credit limitation, X’s taxes of states B and C must be apportioned
income is comprised of one statutory group- between these two groupings.
ing, foreign source general limitation gross (B) Corporation X calculates the appor-
income, and one residual grouping, gross in- tionment on the basis of the relative
come from sources within the United States. amounts of foreign source general limitation
The state income tax deduction of $69,000 income and U.S. source income subject to
must be apportioned between these two state taxation.
groupings. Corporation X calculates the ap- States B and C income tax deduc-
portionment on the basis of the relative tion apportioned to foreign source
amounts of foreign source general limitation general limitation income (statu-
taxable income and U.S. source taxable in- tory grouping): $14,000 × ($150,000/
come subject to state taxation. In this case, $400,000) ......................................... $5,250
state income taxes are presumed to be im- States B and C income tax deduc-
posed on $800,000 of domestic source income tion apportioned to income from
and $150,000 of foreign source general limita- sources within the United States
tion income. (residual grouping): $14,000 ×
State income tax deduction appor- ($250,000/$400,000) ........................... 8,750
tioned to foreign source general
limitation income (statutory Total apportioned state in-
grouping): $69,000 × ($150,000/ come tax deduction .............. $14,000
$950,000) ......................................... $10,895 (C) Of X’s total income taxes of $69,000, the
State income tax deduction appor- amount allocated and apportioned to foreign
tioned to income from sources source general limitation income equals
within the United States (residual $5,250. The total amount of state income
grouping): $69,000 × ($800,000/ taxes allocated and apportioned to U.S.
$950,000) ......................................... 58,105 source income equals $63,750 ($55,000 + $8,750).
Example 27— Income Tax—(i) Facts. Assume
Total apportioned state in-
the same facts as in Example 25 except that
come tax deduction .............. $69,000
state A, in which X has significant income-
Example 26— Income Taxes—(i) Facts. As- producing activities, does not impose a cor-
sume the same facts as in Example 25 except porate income tax or other state tax com-
that the language of state A’s statute and puted on the basis of income derived from
the statute’s operation exempt from tax- business activities conducted in state A. X
ation all foreign source income, as deter- therefore has a total state income tax liabil-
mined under the Code, so that foreign source ity in 1988 of $14,000 ($10,000 paid to state B
income is not included in adjusted taxable plus $4,000 paid to state C), all of which is
income subject to apportionment in state A subject to allocation and apportionment
(and factors relating to X’s country Y branch under paragraph (b) of this section.
are not taken into account in computing the (ii) Allocation. (A) X’s deduction of $14,000
state A apportionment fraction). for state income taxes is definitely related
153
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
and allocable to the gross income with re- ment by eliminating the country Y branch
spect to which the taxes are imposed. How- factors). The resulting product is presumed
ever, in these facts, an adjustment is nec- to be exclusively U.S. source income, and the
essary before the aggregate state taxable in- allocation and apportionment method de-
comes can be compared with U.S. source inscribed in Example 26 must then be applied.
come on the federal income tax return in the (3) If, for example, state A taxable income
manner described in Examples 25 and 26. Un- were determined to equal $550,000, then
like the facts in Examples 25 and 26, state A $550,000 of U.S. source income for federal in-
imposes no income tax and does not define come tax purposes would be presumed to
taxable income attributable to activities in constitute state A taxable income. Under Ex-
state A. The total amount of X’s income sub- ample 26, the remaining $250,000 ($800,000 ¥
ject to state taxation is, therefore, $400,000 $550,000) of U.S. source income for federal in-
($200,000 in state B and $200,000 in state C). come tax purposes would be presumed to be
This total presumptively does not include subject to tax in states B and C. Since states
any income attributable to activities per- B and C impose tax on $400,000, the applica-
formed in state A and therefore can not tion of Example 25 would result in a pre-
properly be compared to total U.S. source sumption that $150,000 is foreign source in-
taxable income reported by X for federal income and $250,000 is domestic source income.
come tax purposes, which does include in- The deduction for the $14,000 of income taxes
come attributable to state A activities. of states B and C would therefore be related
(B)(1) Accordingly, before applying the and allocable to both foreign source and do-
method used in Examples 25 and 26 to the mestic source income and would be subject
facts of this example, it is necessary first to to apportionment.
estimate the amount of taxable income that (iii) Apportionment. The deduction of $14,000
state A could reasonably attribute to X’s ac- for income taxes of states B and C is appor-
tivities in state A, and then to reduce federal tioned in the same manner as in Example 26.
taxable income by that amount. As a result, $5,250 of the $14,000 of state B and
(2) Any reasonable method may be used to state C income taxes is apportioned to for-
attribute taxable income to X’s activities in eign source general limitation income
state A. For example, the rules of the Uni- ($14,000 × $150,000/$400,000), and $8,750 ($14,000 ×
form Division of Income for Tax Purposes $250,000/$400,000) of the $14,000 of state B and
Act (‘‘UDITPA’’) attribute income to a state state C income taxes is apportioned to U.S.
on the basis of the average of three ratios source income.
that are based upon the taxpayer’s facts— Example 28— Income Tax—(i) Facts. (A) As-
property within the state over total prop- sume the same facts as in Example 25 (X has
erty, payroll within the state over total pay- $1,000,000 of taxable income for federal in-
roll, and sales within the state over total come tax purposes, $800,000 of which is U.S.
sales—and, with adjustments, provide a rea- source income and $200,000 of which is for-
sonable method for this purpose. When ap- eign source general limitation income), ex-
plying the rules of UDITPA to estimate U.S. cept that $100,000 of X’s $200,000 of foreign
source income derived from state A activi- source general limitation income consists of
ties, the taxpayer’s UDITPA factors must be dividends from first-tier controlled foreign
adjusted to eliminate both taxable income corporations (‘‘CFCs’’) (as defined in section
and factors attributable to a foreign branch. 957(a) of the Code) which derive exclusively
Therefore, in this example all taxable in- foreign source general limitation income. X
come as well as UDITPA apportionment fac- owns stock representing 10 to 50 percent of
tors (property, payroll, and sales) attrib- the vote and value in such CFCs.
utable to X’s country Y branch must be (B) State A taxable income is computed by
eliminated. first making adjustments to X’s federal tax-
(C)(1) Since it is presumed that, if state A able income. These adjustments result in X
had had an income tax, state A would not at- having a total of $1,100,000 of apportionable
tempt to tax the income derived by X’s coun- taxable income for state A tax purposes.
try Y branch, any reasonable estimate of the None of the $100,000 of adjustments made by
income that would be taxed by state A must state A relate to the dividends paid by the
exclude any foreign source income. CFCs. As in Example 25, the amount of
(2) When using the rules of UDITPA to es- apportionable taxable income attributable to
timate the income that would have been tax- business activities conducted in state A is
able by state A in these facts, foreign source determined by multiplying apportionable
income is excluded by starting with federally taxable income by a fraction (the ‘‘state ap-
defined taxable income (before deduction for portionment fraction’’) that compares the
state income taxes) and subtracting any in- relative amounts of X’s payroll, property,
come derived by X’s country Y branch. The and sales within state A with X’s worldwide
hypothetical state A taxable income is then payroll, property and sales. An analysis of
determined by multiplying the resulting dif- state A law indicates that state A law in-
ference by the average of X’s state A prop- cludes in its definition of the taxable busi-
erty, payroll, and sales ratios, determined ness income of X which is apportionable to
using the principles of UDITPA (after adjust- X’s state A activities, dividends paid to X by
154
its subsidiaries that are in the same business A tax would be allocated entirely to those
as X, but are less than 50 percent owned by foreign source portfolio dividends.) After al-
X (‘‘portfolio dividends’’). The dividends relocation of a portion of the state A tax to
ceived by X from the 10 to 50 percent owned portfolio dividends, $50,000 ($55,000¥$5,000) of
first-tier CFCs, therefore, are considered to state A tax remains to be allocated.
be portfolio dividends includable in (B) A total of $64,000 (the aggregate of the
apportionable business income for state A $50,000 remaining state A tax, and the $10,000
tax purposes. However, the factors of these and $4,000 of taxes imposed by states B and C,
CFCs are not included in the state A appor- respectively) is to be allocated (as provided
tionment fraction for purposes of appor- in Example 25) by comparing U.S. source tax-
tioning income to X’s activities in the state. able income (as determined under the Code)
The comparison of X’s state A factors with with the aggregate of the state taxable in-
X’s worldwide factors results in a state ap- comes determined by states A, B, and C
portionment fraction of 50 percent. Applying (after reducing state apportionable taxable
this fraction to apportionable taxable in- incomes by the amount of any portfolio divi-
come of $1,100,000, as determined under state dends included in apportionable taxable in-
law, results in attributing 50 percent of come to which tax has been specifically allo-
apportionable taxable income to state A, and cated). X’s state A taxable income, after re-
produces total state A taxable income of duction by the $50,000 of portfolio dividends
$550,000. State A imposes an income tax at a taxed by state A, equals $500,000. X also has
rate of 10 percent on the amount of income taxable income of $200,000 and $200,000 in
that is attributed to state A, which results states B and C, respectively. In the aggre-
in $55,000 of tax imposed by state A. gate, therefore, states A, B, and C tax
(ii) Allocation. (A) States A, B, and C im- $900,000 of X’s income, after excluding state
pose income taxes of $69,000 which must be taxable income attributable to portfolio
allocated to the classes of gross income upon dividends. Since X has only $800,000 of U.S.
which the taxes are imposed. A portion of source taxable income for federal income tax
X’s federal income tax dedution of $55,000 for purposes, it is presumed that state income
state A income tax is definitely related and taxes are imposed on $100,000 of foreign
thus allocable to the class of gross income source income. The remaining deduction of
consisting of foreign source portfolio divi- $64,000 for state income taxes is therefore re-
dends. A definite relationship exists between
lated and allocable to both foreign source
a deduction for state income tax and port-
and domestic source income and is subject to
folio dividends when a state includes port-
apportionment.
folio dividends in state taxable income
(iii) Apportionment. For purposes of com-
apportionable to the state, but determines
puting the foreign tax credit limitation, X’s
state taxable income by applying an appor-
income is comprised of one statutory group-
tionment fraction that excludes the factors
of the corporations paying those dividends. ing, foreign source general limitation in-
By applying a state apportionment fraction come, and one residual grouping, gross in-
that excludes factors of the corporations come from sources within the United States.
paying portfolio dividends to apportionable The remaining state income tax deduction of
taxable income that includes the $100,000 of $64,000 must be apportioned between these
foreign source portfolio dividends, $50,000 (50 two groupings on the basis of relative
percent of the $100,000) of the portfolio divi- amounts of foreign source general limitation
dends is attributed to X’s activities in state taxable income and U.S. source taxable in-
A and subjected to state A income tax. Ap- come subject to state taxation. In this case,
plying the state A income tax rate of 10 per- the $64,000 of state income taxes is consid-
cent to the $50,000 of foreign source portfolio ered to be imposed on $800,000 of domestic
dividends subjected to state A income tax, source income and $100,000 of foreign source
$5,000 of X’s $55,000 total state A income tax general limitation income and is apportioned
liability is definitely related and allocable to as follows:
a class of gross income consisting of the for-
eign source portfolio dividends. Since under
the look-through rules of section 904(d)(3) State income tax deduction ap-
the foreign source portfolio dividends from portioned to foreign source
the first-tier CFCs are included within the general limitation income
general limitation described in section (statutory grouping): $64,000 ×
904(d)(1)(I), the $5,000 of state A tax on for- ($100,000/$900,000) ....................... $7,111
eign source portfolio dividends is allocated State income tax deduction ap-
entirely to foreign source general limitation portioned to income from
income and, therefore, is not apportioned. (If sources within the United
the total amount of state A tax imposed on States (residual grouping):
foreign source portfolio dividends were to ex- $64,000 × ($800,000/$900,000) ......... 56,889
ceed the actual amount of X’s state A in-
come tax liability (for example, due to net Total apportioned state in-
operating losses), the actual amount of state come tax deduction ......... $64,000
155
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
Of the total state income taxes of $69,000, able income (federal taxable income with
the amount allocated and apportioned to for- state adjustments) by a fraction (the ‘‘state
eign source general limitation income equals apportionment fraction’’) that compares the
$12,111 ($5,000 + $7,111). The total amount of relative amounts of the unitary business
state income taxes allocated and appor- group’s payroll, property, and sales (the
tioned to U.S. source income equals $56,889. ‘‘factors’’) in state F with the payroll, prop-
Example 29— Income Taxes—(i) Facts. (A) P, erty, and sales of the unitary business group.
a domestic corporation, is a manufacturer
P is the only member of its unitary business
and distributor of electronic equipment with
group that has state F factors and that is
operations in states F, G, and H. P also has
a branch in country Y which manufactures thereby subject to state F income tax and
and distributes the same type of electronic filing requirements. State F defines the uni-
equipment. In addition, P has three wholly tary business group to include any corpora-
owned subsidiaries, US1, US2, and FS, the tion more than 50 percent of which is di-
latter a controlled foreign corporation rectly or indirectly owned by a state F tax-
(‘‘CFC’’) as defined in section 957(a) of the payer and is engaged in the same unitary
Code. P also owns stock representing 10 to 50 business. P’s unitary business group, there-
percent of the vote and value of various fore, includes P, US1, US2, and FS, but does
other first-tier CFCs that derive exclusively not include the 10 to 50 percent owned CFCs.
foreign source general limitation income. The income of the unitary business group ex-
(B) In 1988, P derives $1,000,000 of federal cludes intercompany dividends between
taxable income (without taking into account members of the unitary business group and
the deduction for state income taxes), which subpart F inclusions with respect to a mem-
consists of $250,000 of foreign source general ber of the unitary business group. Dividends
limitation income and $750,000 of U.S. source
paid from nonmembers of the unitary group
income. The foreign source general limita-
(the 10 to 50 percent owned CFCs) for state F
tion income consists of a $25,000 subpart F
inclusion with respect to FS, $150,000 of divi- tax purposes are referred to as ‘‘portfolio
dends from the other first-tier CFCs deriving dividends’’ and are included in taxable in-
exclusively foreign source general limitation come of the unitary business. None of the
income, in which P owns stock representing factors (in state F or worldwide) of the cor-
10 to 50 percent of the vote and value, and porations paying portfolio dividends are in-
$75,000 of manufacturing and sales income cluded in the state F apportionment fraction
derived by P’s U.S. operations and country Y for purposes of apportioning total taxable in-
branch. The $750,000 of U.S. source income come of the unitary business to P’s state F
consists of manufacturing and sales income activities.
derived by P’s U.S. operations. (E) After state adjustments to the taxable
(C) For federal income tax purposes, US1 income of the unitary business group, as de-
derives $75,000 of taxable income, before determined under federal tax principles, the
duction for state income taxes, which con- total taxable income of P’s unitary business
sists entirely of U.S. source income. US2, a
group equals $2,000,000, consisting of
so-called ‘‘80/20’’ corporation described in
section 861(c)(1), derives $250,000 of federal $1,050,000 of P’s income ($100,000 of foreign
taxable income before deduction for state or source manufacturing and sales income,
foreign income taxes, all of which is derived $150,000 of foreign source portfolio dividends,
from foreign operations and consists entirely and $800,000 of U.S. source manufacturing
of foreign source general limitation income. and sales income, but excluding the $25,000
FS is not engaged in a U.S. trade or business subpart F inclusion attributable to FS since
and derives $550,000 of foreign source general FS is a member of the unitary business
limitation income before deduction for for- group), $100,000 of US1’s income (from sales
eign income taxes. made in the United States), $275,000 of US2’s
(D) State F imposes a corporate income income (from an active business outside the
tax of 10 percent of P’s state F taxable in- United States), and $575,000 of FS’s income.
come, which is determined by formulary ap- The differences between taxable income
portionment of the total taxable income at- under federal tax principles and state F
tributable to P’s worldwide unitary business. apportionable taxable income for P, US1,
State F determines P’s taxable income for US2, and FS represent adjustments to tax-
state F tax purposes by first making adjust- able income under federal tax principles that
ments to the taxable income, as determined are made pursuant to the tax laws of state F.
for federal income tax purposes, of the mem-
(F) The taxable income for each member of
bers of the unitary business group to deter-
mine the total taxable income of the group. the unitary business group under federal tax
State F then computes P’s state taxable in- principles and state law principles is summa-
come by attributing a portion of that uni- rized in the following table. (The items of in-
tary business taxable income to activities of come listed in the ‘‘Federal’’ column of the
P that are conducted in state F. State F does table refer to taxable income before deduc-
this by multiplying the unitary business tax- tion for state income tax.)
156
Federal State F and dividend income when a state includes

portfolio dividends in state taxable income
P apportionable to the taxpayer’s activities in
U.S. source income ....................... $750,000 $800,000 the state, but determines state taxable in-
Foreign source general limitation come by applying an apportionment formula
income: that excludes the factors of the corporations
Portfolio dividends .................. 150,000 150,000
Subpart F income ................... 25,000 0
paying portfolio dividends.
Manufacturing and sales in- (B) In this case, $150,000 of foreign source
come ................................... 75,000 100,000 portfolio dividends are subject to a state F
apportionment fraction of 25 percent, which
Total taxable income .......... 1,000,000 1,050,000 results in a total of $37,500 of state F taxable
US1 income attributable to such dividends. As il-
U.S. source income ....................... 75,000 100,000
lustrated in Example 28, $3,750 ($150,000 × 25
percent state F apportionment percentage ×
US2 10 percent state F tax rate) of P’s state F in-
Foreign source general limitation come tax is definitely related and allocable
income ....................................... 250,000 275,000 to a class of gross income consisting entirely
FS of the foreign source portfolio dividends.
Foreign source general limitation Since under the look-through rules of sec-
income ....................................... 550,000 575,000 tion 904(d)(3) the foreign source portfolio
dividends paid by first-tier CFCs are in-
Taxable income of the unitary cluded within the general limitation de-
business group .......................... .................. 2,000,000 scribed in section 904(d)(1)(I), the $3,750 of
state F tax on foreign source portfolio divi-
(G) State F deems P to have state F tax- dends is allocated entirely to foreign source
general limitation income and, therefore, is
able income of $500,000, which is determined
not apportioned.
by multiplying the total taxable income of
(C) After reducing state F taxable income
the unitary business group ($2,000,000) by the
of the unitary business group by the taxable
group’s state F apportionment fraction,
income attributable to portfolio dividends,
which is assumed to be 25 percent in these
P’s remaining state F taxable income equals
facts. P’s state F taxable income is then
$462,500 ($500,000 ¥ $37,500), the portion of the
multiplied by the state F tax rate of 10 per-
taxable income of the unitary business that
cent, resulting in a state F tax liability of
state F attributes to P’s activities in state
$50,000. State G and state H, unlike state F, F. Accordingly, in order to allocate and ap-
do not tax portfolio dividends. Although portion the remaining $46,250 of state F tax
state G and state H apportion taxable in- ($50,000 of state F tax minus the $3,750 of
come, respectively, on the basis of an appor- state F tax allocated to foreign source port-
tionment fraction that compares state fac- folio dividends), it is necessary first to deter-
tors to total factors, state G and state H, un- mine if state F is taxing only P’s non-uni-
like state F, do not apply a unitary business tary taxable income (as defined below) or is
theory and consider only P’s taxable income imposing its tax partly on other unitary
and factors in computing P’s taxable income. business income that is attributed under
P’s taxable income under state G law equals state F law to P’s activities in state F. P’s
$300,000, which is subject to a 5 percent tax state F non-unitary taxable income is com-
rate resulting in a state G tax liability of puted by applying the state F apportionment
$15,000. P’s taxable income under state H law formula, solely on the basis of P’s income
is $300,000, which is subject to a tax rate of 2 (excluding portfolio dividends) and state F
percent resulting in a state H tax liability of apportionment factors. If the state F taxable
$6,000. P has a total federal income tax de- income (after reduction by the portfolio divi-
duction for state income taxes of $71,000 dends attributed to state F) attributed to P
($50,000 + 15,000 + 6,000). under state F law exceeds P’s non-unitary
(ii) Allocation. (A) P’s deduction of $71,000 taxable income, a portion of the state F tax
for state income taxes is definitely related must be allocated and apportioned on the
and allocable to the gross income with re- basis of the other unitary business income
spect to which the taxes are imposed. Ad- that is attributed to and taxable to P under
justments may be necessary, however, before state F law. If P’s non-unitary taxable in-
aggregate state taxable incomes can be com- come equals or exceeds the $462,500 of re-
pared with U.S. source taxable income on the maining state F taxable income, it is pre-
federal income tax return in the manner de- sumed that state F is only taxing P’s non-
scribed in Examples 25 and 26. In allocating unitary taxable income, so that the entire
P’s deduction for state income taxes, it is amount of the remaining state F tax should
necessary first to determine the portion, if be allocated and apportioned in the manner
any, of the deduction that is definitely re- described in Example 25.
lated and allocable to a particular class of (D) If P’s non-unitary taxable income is
gross income. A definite relationship exists less than the $462,500 of remaining state F
between a deduction for state income tax taxable income (after reduction for the
157
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
$37,500 of state F taxable income attributable business income of the water’s edge group
to portfolio dividends), it is presumed that yields state F water’s edge taxable income of
state F is attributing to P, and taxing P $400,000. The excess of the remaining $462,500
upon, other unitary business income. In such of P’s state F taxable income over the
a case, it is necessary to determine if state $400,000 of P’s state F water’s edge taxable
F is attributing to P, and imposing its in- income equals $62,500, and is attributable to
come tax on, a part of the foreign source in- the inclusion of US2 and FS in the unitary
come that would be generally presumed group. The state F tax attributable to the
under separate accounting to be the income $62,500 of taxable income attributed to P
of foreign affiliates and 80/20 companies in- under state F law, and that would have gen-
cluded in the unitary group, or whether state erally been attributed to US2 and FS under
F is limiting the income it attributes to P, non-unitary accounting, equals $6,250 and is
and its taxation of P, to the U.S. source in- allocated entirely to a class of gross income
come that would be generally presumed consisting of foreign source general limita-
under separate accounting to be the income tion income, because the income of FS and
of domestic members of the unitary group. US2 consists entirely of such income. After
(E) Assume for purposes of this example the $6,250 of state F tax attributable to US2
that the non-unitary taxable income attrib- and FS is subtracted from the remaining
utable to P equals $396,000, computed by mul- $46,250 of net state F tax, P has $40,000 of
tiplying P’s state F taxable income of state F tax remaining to be allocated and ap-
$900,000 (P’s state F taxable income (before portioned.
state F apportionment) of $1,050,000 less the (G) To the extent that the remainder of P’s
$150,000 of foreign source portfolio dividends) state F taxable income ($400,000) exceeds P’s
by P’s non-unitary state F apportionment non-unitary state F taxable income
fraction, which is assumed to be 44 percent. ($396,000), it is presumed that state F is at-
Because P’s non-unitary taxable income of tributing to and imposing on P a tax on U.S.
$396,000 is less than the $462,500 of remaining source income that would have been attrib-
state F taxable income, state F is presumed uted under separate accounting to members
to be attributing to P and taxing the income of the water’s edge group other than P. In
that would have been generally attributed these facts, the $4,000 difference in P’s state
under separate accounting to P’s affiliates in F taxable income results from the inclusion
the unitary group. To determine if state F of US1 in the unitary group. The $400 of P’s
tax is being imposed on members of the uni- state F tax attributable to this $4,000 is allo-
tary group (other that P) that produce for- cated entirely to P’s U.S. source income. P’s
eign source income, it is necessary to com- remaining $39,600 of state F tax ($40,000 of P’s
pute a hypothetical state F taxable income state F tax resulting from the attribution of
for all companies in the unitary group with P of income that would have been attributed
significant U.S. operations. (For this pur- under non-unitary accounting to other mem-
pose, the hypothetical group of companies bers of the water’s edge group, minus $400 of
with significant domestic operations is restate F tax attributable to US1 and allocated
ferred to as the ‘‘water’s edge group.’’) State to P’s U.S. source income) is the state F tax
F is presumed to be attributing to P and tax- attributable to P’s non-unitary state F tax-
ing income that would have been generally able income that is to be allocated and ap-
attributable under separate accounting to portioned together with P’s state G tax of
foreign corporations and 80/20 companies to $15,000 and state H tax of $6,000 as illustrated
the extent that the remaining state F tax- in Example 25.
able income ($462,500) of P exceeds the hypo- (H) In allocating the $60,600 of state tax li-
thetical state F taxable income that would abilities ($39,600 state F tax attributable to
have been attributed under state F law to P P’s non-unitary state F income + $15,000
if state F had defined the unitary group to be state G tax + $6,000 state H tax) under Exam-
the water’s edge group. ple 25, P’s state taxable income in state G
(F) The members of the water’s edge group and state H ($300,000 + $300,000) must be
would have been P and US1. The unitary added to P’s non-unitary state F taxable in-
business income of this water’s edge group is come ($396,000). The resulting $996,000 of com-
$1,000,000, the sum of $900,000 (P’s state F tax- bined state taxable incomes is compared
able income (before state F apportionment) with $750,000 of U.S. source income on P’s
of $1,050,000 less the $150,000 of foreign source federal income tax return. Because P’s com-
portfolio dividends) and $100,000 (US1’s state bined state taxable incomes exceeds P’s fed-
F taxable income). For purposes of this ex- eral U.S. source taxable income, it is pre-
ample, the state F apportionment fraction sumed that the remaining $60,600 of P’s total
determined on a unitary basis for this wa- state income taxes is imposed in part on for-
ter’s edge group is assumed to equal 40 per- eign source income. Accordingly, P’s remain-
cent, the average of P and US1’s state F paying deduction of $60,600 ($39,600 + $15,000 +
roll, property, and sales factor ratios (the $6,000) for state income taxes is related and
water’s edge group’s state F factors over its allocable to both P’s foreign source and do-
worldwide factors). Applying this apportion- mestic source income and is subject to ap-
ment fraction to the $1,000,000 of unitary portionment.
158
(iii) Apportionment. The $60,600 of state $100,000 and deductions of $50,000, without re-
taxes (the remaining $39,600 of state F tax + gard to its deduction for state income tax. Of
$15,000 of state G tax + $6,000 of state H tax) the $50,000 of deductions incurred by X,
must be apportioned between foreign source $15,000 relates to X’s ownership of M; $10,000
general limitation income and U.S. source relates to X’s ownership of N; $5,000 relates
income for federal income tax purposes. This to X’s ownership of O; and the entire $30,000
apportionment is based upon the relative constitutes stewardship expenses. The re-
amounts of foreign source general limitation mainder of X’s $20,000 of deductions (which is
taxable income and U.S. source taxable in- assumed not to include state income tax) re-
come comprising the $996,000 of income sub- lates to production of income from its plant
ject to tax by the states, after reducing the in the United States. M has gross income of
total amount of income subject to tax by the $250,000 and deductions of $100,000, which
portfolio dividends and the income attrib- yield foreign source taxable income of
uted to P under state F law that would have $150,000. N has gross income of $150,000 and
been attributed under arm’s length prin- deductions of $200,000, which yield a foreign
ciples to other members of P’s state F uni- source loss of $50,000. O has gross income of
tary business group. The deduction for the $50,000 and deductions of $20,000, which yield
$60,600 of state income taxes is apportioned U.S. source taxable income of $30,000.
as follows:
(B) Unlike Example 17 of § 1.861–8(g), how-
State income tax deduction appor- ever, X also has a deduction of $1,800 for
tioned to foreign source general state A income taxes. X’s state A taxable in-
limitation income (statutory come is computed by first making adjust-
grouping): $60,600 x ($246,000/ ments to the federal taxable income of X to
$996,000) ......................................... $14,967 derive apportionable taxable income for
State income tax deduction appor- state A tax purposes. An analysis of state A
tioned to income from sources law indicates that state A law also includes
within the United States (residual in its definition of the taxable business in-
grouping): $60,600 x ($750,000/ come of X which is apportionable to X’s
$996,000) ......................................... 45,633 state A activities, the taxable income of M,
N, and O, which is related to X’s business. As
Total apportioned state in- in Example 25, the amount of apportionable
come tax deduction ........... 60,600 taxable income attributable to business ac-
tivities conducted in state A is determined
Of the total state income taxes of $71,000, the by multiplying apportionable taxable income
amount allocated and apportioned to foreign by a fraction (the ‘‘state apportionment frac-
source general limitation income is $24,967— tion’’) that compares the relative amounts of
the sum of $14,967 of state F, state G, and payroll, property, and sales within state A
state H taxes apportioned to foreign source with worldwide payroll, property and sales.
general limitation income, $3,750 of state F Assuming that X’s apportionable taxable in-
tax allocated to foreign source apportionable come equals $180,000, $100,000 of which is from
dividend income, and the $6,250 of state F tax sources without the United States, and
allocated to foreign source general limita- $80,000 is from sources within the United
tion income as the result of state F’s world- States, and that the state apportionment
wide unitary business theory of taxation. fraction is equal to 10 percent, X has state A
The total amount of state income taxes allo- taxable income of $18,000. The state A in-
cated and apportioned to U.S. source income come tax of $1,800 is then derived by applying
equals $46,033—the sum of the $400 of state F the state A income tax rate of 10 percent to
tax attributable to the inclusion of US1 in the $18,000 of state A taxable income.
the state F unitary business group and (ii) Allocation and apportionment. In accord-
$45,633 of combined state F, G, and H tax ap- ance with § 1.1502–4, each corporation must
portioned under the method provided in Ex- first compute its separate taxable income for
ample 25. purposes of computing the consolidated limi-
Example 30— Income Taxes—(i) Facts. (A) As tation on the foreign tax credit. Assume that
in Example 17 of § 1.861–8(g), X is a domestic under Example 29, it is determined that X’s
corporation that wholly owns M, N, and O, deduction for state A income tax is defi-
also domestic corporations. X, M, N, and O nitely related to a class of gross income con-
file a consolidated income tax return. All the sisting of income from sources both within
income of X and O is from sources within the and without the United States, and that the
United States, all of M’s income is from state A tax is apportioned $1,000 to sources
sources within South America, and all of N’s without the United States, and $800 to
income is from sources within Africa. X resources within the United States. Under Ex-
ceives no dividends from M, N, or O. During ample 17, without regard to the deduction for
the taxable year, the consolidated group of X’s state A income tax, X has a separate loss
corporations earned consolidated gross in- of ($25,000) from sources without the United
come of $550,000 and incurred total deduc- States. After taking into account the deduc-
tions of $370,000. X has gross income of tion for state A income tax, X’s separate loss
159
§ 1.861–8 26 CFR Ch. I (4–1–99 Edition)
from sources without the United States is in- Example 33— Income Taxes—(i) Facts. As-
creased by the $1,000 state A tax apportioned sume the same facts as in Example 29, except
to sources without the United States, and that state G does not impose an income tax
equals a loss of ($26,000), for purposes of com- on corporations, and P’s non-unitary state F
puting the numerator of the consolidated taxable income equals $462,500. Thus only
foreign tax credit limitation. $56,000 of state income taxes ($50,000 of state
Example 31— Income Taxes—(i) Facts. As- F income tax and $6,000 of state H income
sume that the facts are the same as in Exam- tax) are deductible and required to be allo-
ple 29, except that state G requires P to ad- cated and (if necessary) apportioned. As in
just its federal taxable income by depre- Example 29, P has $800,000 of aggregate state
ciating an asset at a different rate than is al- taxable income ($500,000 of state F taxable
lowed P under the Internal Revenue Code for income and $300,000 of state H taxable in-
the same asset. Before using the method- come).
ology of Example 25 to determine whether a (ii) Method One. Assume that P has elected
portion of its deduction for state income to allocate and apportion its deduction for
taxes is allocable to a class of gross income state income tax under the safe harbor meth-
that includes foreign source income, P re- od provided in § 1.861–8 (e)(6)(ii)(D)(2) (‘‘Meth-
computes its taxable income under state G od One’’).
law by using the rate of depreciation that it (A) Step One—Specific allocation to foreign
is entitled to use under the Code, and uses source portfolio dividends. P applies the meth-
this recomputed amount in applying the odology of paragraph (ii) of Example 28 to de-
methodology of Example 25. termine the portion of the deduction that
must be allocated to a class of gross income
(ii) Allocation. P’s modification of its state
consisting solely of foreign source portfolio
G taxable income is permissible. Under the
dividends. As illustrated in paragraphs (ii)
methdology of Example 25, this modification
(A) and (B) of Example 29, $3,750 of the deduc-
of state G taxable income will produce a rea-
tion for state F income tax is attributable to
sonable determination of the portion (if any)
the $37,500 of foreign source portfolio divi-
of P’s state income taxes that is allocable to dends attributed under state F law to P’s ac-
a class of gross income that includes foreign tivities in state F. Thus $3,750 of P’s deduc-
sources income. tion for state income tax must be specifi-
Example 32— Income Taxes—(i) Facts. As- cally allocated to a class of gross income
sume the facts are the same as Example 29, consisting solely of $37,500 of foreign source
except that P’s state F taxable income dif- portfolio dividends. No apportionment of the
fers from the amount of its U.S. source in- $3,750 is necessary. P’s adjusted state taxable
come under federal income tax principles income is $762,500 (aggregate state taxable
solely because state F determines P’s state income of $800,000 reduced by $37,500 of for-
taxable income under a worldwide unitary eign source portfolio dividends). Because the
business theory instead of the arm’s length remaining amount of state F taxable income
principles applied in the Code. Before using ($462,500) equals P’s non-unitary state F tax-
the methodology of Example 25 to determine able income, no further specific allocation of
whether a portion of its deduction for state state tax is required.
income taxes is allocable to a class of gross (B) Step Two—Adjustment of U.S. source fed-
income that includes foreign source income, eral taxable income. P applies the method-
P recomputes state F taxable income under ology illustrated in paragraph (ii) of Exam-
the arm’s length principles applied in the ple 27 (including the rules of UDITPA de-
Code. P substitutes that recomputed amount scribed therein) to determine the amount of
for the amount of taxable income actually its federal taxable income attributable to its
determined under state F law in applying the activities in state G. Assume that P deter-
methodology of Example 25. mines under this methodology that $300,000
(ii) Allocation. P’s modification of state F of its federal taxable income is attributable
taxable income does not accurately reflect to activities in state G. P’s adjusted U.S.
the factual relationship between the deduc- source federal taxable income equals $450,000
tion for state F income tax and the income ($750,000 minus the $300,000 attributed to P’s
on which the tax is imposed, because there is activities in state G).
no factual relationship between the state F (C) Step Three—Allocation. The portion of
income tax and the state F taxable income P’s deduction for state income tax remaining
as recomputed under Code principles. State to be allocated equals $52,250 ($56,000 minus
F does not impose its income tax upon P’s the $3,750 specifically allocated to foreign
income as it might have been defined under source portfolio dividends). P allocates this
the Internal Revenue Code. Consequently, portion by applying the methodology illus-
P’s modification of state F taxable income is trated in paragraph (ii) of Example 25, as
impermissible because it will not produce a modified by paragraph (e)(6)(ii)(D)(2)(iii) of
reasonable determination of the portion (if this section. Thus, P compares its adjusted
any) of P’s state income taxes that is allo- state taxable inocme (as determined under
cable to a class of gross income that includes Step One in paragraph (A) above) with an
foreign source income. amount equal to 110% of its adjusted U.S.
160
source federal taxable income (as determined of Example 25, as modified by paragraph
under Step Two in paragraph (B) above). Be- (e)(6)(ii)(D)(3)(iii) of this section. Thus, P
cause P’s adjusted state taxable income compares its adjusted state taxable income
($762,500) exceeds 110% of P’s adjusted U.S. (as determined under Step One in paragraph
source federal taxable income ($495,000, or (A) above) with its adjusted U.S. source fed-
110% of $450,000), the remaining portion of eral taxable income (as determined under
P’s deduction for state income tax ($52,500) Step Two in paragraph (B) above). Because
must be allocated to a class of gross income P’s adjusted state taxable income ($762,500)
that includes both U.S. and foreign source exceeds P’s adjusted U.S. source federal tax-
income. able income ($450,000), the remaining portion
(D) Step Four—Apportionment. P must ap- of P’s deduction for state income tax ($52,500)
portion to U.S. source income the portion of must be allocated to a class of gross income
the deduction that is attributable to state that includes both U.S. and foreign source
income tax imposed upon state taxable in- income.
come in an amount equal to 110% of P’s ad- (D) Step Four—Apportionment. P must ap-
justed U.S. source federal taxable income. portion to U.S. source income the portion of
The remainder of the deduction must be ap- the deduction that is attributable to state
portioned to foreign source general limita- income tax imposed upon state taxable in-
tion income. come in an amount equal to P’s adjusted
Amount of deduction to be ap- U.S. source federal taxable income.
portioned ................................ $52,250.00 Amount of deduction to be ap-
Less portion of deduction to be portioned ................................ $52,250.00
apportioned to income from
Less portion of deduction ini-
sources within the United
tially apportioned to income
States (residual grouping):
from sources within the
($52,250 × ($495,000/$762,500) ....... $33,919.67
United States (residual group-
Equals Portion of deduction to ing): $52,250 × ($450,000/$762,500) 30,836.07
be apportioned to foreign
source general limitation in- Remainder requiring further ap-
come (statutory grouping): ..... $18,330.33 portionment: $52,250 × ($312,500/
$762,500) ................................... 21,413.93
(iii) Method Two. Assume that P has elect-
ed to allocate and apportion its deduction for The remainder of $21,413.93 must be further
state income tax under the safe harbor meth- apportioned between foreign source general
od provided in § 1.861–8(e)(6)(ii)(D)(3) (‘‘Meth- limitation income and U.S. source federal
od Two’’). taxable income in the same proportions that
(A) Step One—Specific allocation. Step One P’s adjusted U.S. source federal taxable in-
of Method Two is the same as Step One of come and foreign source general limitation
Method One. Therefore, as described in para- income bear to P’s total federal taxable in-
graph (A) of paragraph (ii) above, $3,750 of come (taking into account the adjustment of
P’s deduction for state income tax must be U.S. source federal taxable income and re-
specifically allocated to a class of gross in- duced by the amount of foreign source port-
come consisting solely of $37,500 of foreign folio dividends to which the tax has been spe-
source portfolio dividends. No apportion- cifically allocated).
ment of the $3,750 is necessary. P’s adjusted Portion of remainder appor-
state taxable income is $762,500 (aggregate tioned to foreign source gen-
state taxable income of $800,000 reduced by eral limitation income (statu-
$37,500 of foreign source portfolio dividends). tory grouping): $21,413.93 X
(B) Step Two—Adjustment of U.S. source fed- ($212,500/$662,500) ..................... $6,868.62
eral taxable income. Step Two of Method Two Remaining state income tax de-
is the same as Step Two of Method One. duction to be apportioned to
Therefore, as described in paragraph (B) of income from sources within
paragraph (ii) above, assume that P deter- the United States (residual
mines that $300,000 of its federal taxable in- grouping): $21,413.93 X
come is attributable to activities in state G. ($450,000/$662,500) ..................... $14,545.31
P’s adjusted U.S. source federal taxable in-
come equals $450,000 ($750,000 minus the Of P’s total deduction of $56,000 for state
$300,000 attributed to P’s activities in state income tax, the portion allocated and appor-
G). tioned to foreign source general limitation
(C) Step Three—Allocation. The portion of income equals $10,618.62—the sum of $6,868.62
P’s deduction for state income tax remaining apportioned under Step Four and the
to be allocated equals $52,250 ($56,000 minus $3,750.00 specifically allocated to foreign
the $3,750 of state F income tax specifically source portfolio dividend income under Step
allocated to foreign source portfolio divi- One. The portion of the deduction allocated
dends). P allocates this portion by applying and apportioned to U.S. source income
the methodology illustrated in paragraph (ii) equals $45,381.38—the sum of the $30,836.07
161
§ 1.861–8T 26 CFR Ch. I (4–1–99 Edition)
and the $14,545.31 apportioned under Step to generate gross income. This would
Four. ordinarily be accomplished by allo-
(Secs. 882(c) and 7805 of the Internal Revenue cating the supportive expenses to all
Code of 1954 (80 Stat. 1556; 26 U.S.C. 882(c) and gross income or to another broad class
68A Stat. 917; 26 U.S.C. 7805)) of gross income and apportioning the
[T.D. 7456, 42 FR 1195, Jan. 6, 1977, as amend- expenses in accordance with paragraph
ed by T.D. 7749, 46 FR 1683, Jan. 7, 1981; T.D. (c)(1) of this section. For this purpose,
7939, 49 FR 4207, Feb. 3, 1984; T.D. 8228, 53 FR reasonable departmental overhead
35474, Sept. 14, 1988; T.D. 8286, 55 FR 3052, rates may be utilized. For examples of
Jan. 30, 1990; T.D. 8337, 56 FR 10369, Mar. 12, the application of the principles of this
1991; 56 FR 22760, May 16, 1991; 56 FR 24001,
May 28, 1991; T.D. 8228, 60 FR 36669, July 18,
paragraph (b)(3) other than to expenses
1995; T.D. 8646, 60 FR 66503, Dec. 22, 1995; T.D. attributable to stewardship activities,
8805, 64 FR 1509, Jan 11, 1999] see examples 19 through 21 of para-
graph (g) of this section. See paragraph
§ 1.861–8T Computation of taxable in- (e)(4) of this section for the allocation
come from sources within the and apportionment of deductions at-
United States and from other tributable to stewardship activities.
sources and activities (temporary).
However, supportive deductions that
(a) In general. are described in § 1.861–14T(e)(3) shall be
(1) [Reserved] allocated and apportioned in accord-
(2) Allocation and apportionment of de- ance with the rules of § 1.1861–14T and
ductions in general. If an affiliated shall not be allocated and apportioned
group of corporations joins in filing a by reference only to the gross income
consolidated return under section 1501, of a single member of an affiliated
the provisions of this section are to be group of corporations as defined in
applied separately to each member in § 1.861–14T(d).
that affiliated group for purposes of de-
(4)–(5) [Reserved]
termining such member’s taxable in-
come, except to the extent that ex- (c) Apportionment of deductions—(1)
penses, losses, and other deductions are Deductions definitely related to a class of
allocated and apportioned as if all do- gross income. Where a deduction has
mestic members of an affiliated group been allocated in accordance with
were a single corporation under section paragraph (b) of this section to a class
864(e) and the regulations thereunder. of gross income which is included in
See § 1.861–9T through § 1.861–11T for one statutory grouping and the resid-
rules regarding the affiliated group al- ual grouping, the deduction must be
location and apportionment of interest apportioned between the statutory
expense, and § 1.861–14T for rules re- grouping and the residual grouping.
garding the affiliated group allocation Where a deduction has been allocated
and apportionment of expenses other to a class of gross income which is in-
than interest. cluded in more than one statutory
(3)–(5) [Reserved] grouping, such deduction must be ap-
(b) Allocation. portioned among the statutory
(1)–(2) [Reserved] groupings and, where necessary, the re-
(3) Supportive functions. Deductions sidual grouping. Thus, in determining
which are supportive in nature (such as the separate limitations on the foreign
overhead, general and administrative, tax credit imposed by section 904(d)(1)
and supervisory expenses) may relate or by section 907, the income within a
to other deductions which can more separate limitation category con-
readily be allocated to gross income. In stitutes a statutory grouping of income
such instance, such supportive deduc- and all other income not within that
tions may be allocated and apportioned separate limitation category (whether
along with the deductions to which domestic or within a different separate
they relate. On the other hand, it limitation category) constitutes the re-
would be equally acceptable to at- sidual grouping. In this regard, the
tribute supportive deductions on some same method of apportionment must
reasonable basis directly to activities be used in apportioning a deduction to
or property which generate, have gen- each separate limitation category.
erated, or could be reasonably expected Also, see paragraph (f)(1)(iii) of this
162
CFR26 1.1-1
Code of Federal Regulation (CFR) 26

1.1-1
Regulation identifying income tax on individuals.
Click here to see it.
icon below.
http://www.eddiekahn.com/REF/cfr26_111.htm [1/13/2004 8:13:18 PM]

§ 1.0–1 26 CFR Ch. I (4–1–00 Edition)
Section 1.42–4 is also issued under 26 U.S.C. tents and an appendix; but without an index
42(n); or marginal references. The date of enact-
Section 1.42–5 is also issued under 26 U.S.C. ment, bill number, public law number, and
42(n); chapter number, shall be printed as a head-
Sections 1.42–6, 1.42–8, 1.42–9, 1.42–10, 1.42–11, note.
and 1.42–12, also issued under 26 U.S.C. 42(n); (c) Cross reference. For saving provisions,
Section 1.42–13 also issued under 26 U.S.C. effective date provisions, and other related
42(n); provisions, see chapter 80 (sec. 7801 and fol-
Section 1.42–14 also issued under 26 U.S.C. lowing) of the Internal Revenue Code of 1954.
42(n);
(d) Enactment of Internal Revenue Title into
Section 1.42–15 also issued under 26 U.S.C.
law. The Internal Revenue Title referred to
42(n);
in subsection (a)(1) is as follows:
Section 1.42–16 also issued under 26 U.S.C.
42(n);
Section 1.42–17 also issued under 26 U.S.C. * * * * *
42(n);
Sections 1.43–0 through 1.43–7 also issued In general, the provisions of the Internal
under section 26 U.S.C. 43; Revenue Code of 1954 are applicable with re-
Section 1.46–5 also issued under 26 U.S.C. spect to taxable years beginning after De-
46(d)(6) and 26 U.S.C. 47(a)(3)(C); cember 31, 1953, and ending after August 16,
Section 1.46–6 also issued under 26 U.S.C. 1954. Certain provisions of that Code are
46(f)(7); deemed to be included in the Internal Rev-
Section 1.47–1 also issued under 26 U.S.C. enue Code of 1939. See section 7851.
47(a); (b) Scope of regulations. The regulations in
Section 1.48–9 also issued under 26 U.S.C. this part deal with (1) the income taxes im-
38(b) (as in effect before the amendments posed under subtitle A of the Internal Rev-
made by subtitle F of the Tax Reform Act of enue Code of 1954, and (2) certain administra-
1984); tive provisions contained in subtitle F of
Sections 1.50A—1.50B also issued under 85 such Code relating to such taxes. In general,
Stat. 553 (26 U.S.C. 40(b)); the applicability of such regulations is com-
Section 1.52–1 also issued under 26 U.S.C. mensurate with the applicability of the re-
52(b); spective provisions of the Internal Revenue
Section 1.56–1 also issued under 26 U.S.C. Code of 1954 except that with respect to the
56(f)(2)(H); provisions of the Internal Revenue Code of
Section 1.56(g)–1 also issued under section 1954 which are deemed to be included in the
7611(g)(3) of the Omnibus Budget Reconcili- Internal Revenue Code of 1939, the regula-
ation Act of 1989 (Pub. L. 101–239, 103 Stat. tions relating to such provisions are applica-
2373); and ble to certain fiscal years and short taxable
Section 1.58–9 is also issued under 26 U.S.C. years which are subject to the Internal Rev-
58(h). enue Code of 1939. Those provisions of the
SOURCE: T.D. 6500, 25 FR 11402, Nov. 26, 1960; regulations which are applicable to taxable
25 FR 14021, Dec. 21, 1960, unless otherwise years subject to the Internal Revenue Code
noted. of 1939 and the specific taxable years to
which such provisions are so applicable are
identified in each instance. The regulations
§ 1.0–1 Internal Revenue Code of 1954 in 26 CFR (1939) part 39 (Regulations 118) are
and regulations. continued in effect until superseded by the
regulations in this part. See Treasury Deci-
(a) Enactment of law. The Internal sion 6091, approved August 16, 1954 (19 FR
Revenue Code of 1954 which became law 5167, C.B. 1954–2, 47).
upon enactment of Public Law 591, 83d
Congress, approved August 16, 1954, pro- NORMAL TAXES AND SURTAXES
vides in part as follows:
DETERMINATION OF TAX LIABILITY
Be it enacted by the Senate and House of Rep-
resentatives of the United States of America in
TAX ON INDIVIDUALS
Congress assembled, That
(a) Citation. (1) The provisions of this Act
set forth under the heading ‘‘Internal Rev- § 1.1–1 Income tax on individuals.
enue Title’’ may be cited as the ‘‘Internal (a) General rule. (1) Section 1 of the
Revenue Code of 1954’’ Code imposes an income tax on the in-
(2) The Internal Revenue Code enacted on
come of every individual who is a cit-
February 10, 1939, as amended, may be cited
as the ‘‘Internal Revenue Code of 1939’’. izen or resident of the United States
(b) Publication. This Act shall be published and, to the extent provided by section
as volume 68A of the United States Statutes 871(b) or 877(b), on the income of a non-
at Large, with a comprehensive table of con- resident alien individual. For optional
VerDate 18<APR>2000 13:46 Apr 18, 2000 Jkt 190079 PO 00000 Frm 00008 Fmt 8010 Sfmt 8010 Y:\SGML\190079T.XXX pfrm07 PsN: 190079T
tax in the case of taxpayers with ad- Code) or at the source of the income by
justed gross income of less than $10,000 withholding. For the computation of
(less than $5,000 for taxable years be- tax in the case of a joint return of a
ginning before January 1, 1970) see sec- husband and wife, or a return of a sur-
tion 3. The tax imposed is upon taxable viving spouse, for taxable years begin-
income (determined by subtracting the ning before January 1, 1971, see section
allowable deductions from gross in- 2. The computation of tax in such a
come). The tax is determined in ac- case for taxable years beginning after
cordance with the table contained in December 31, 1970, is determined in ac-
section 1. See subparagraph (2) of this cordance with the table contained in
paragraph for reference guides to the section 1(a) as amended by the Tax Re-
appropriate table for taxable years be- form Act of 1969. For other rates of tax
ginning on or after January 1, 1964, and on individuals, see section 5(a). For the
before January 1, 1965, taxable years imposition of an additional tax for the
beginning after December 31, 1964, and calendar years 1968, 1969, and 1970, see
before January 1, 1971, and taxable section 51(a).
years beginning after December 31, (2)(i) For taxable years beginning on
1970. In certain cases credits are al- or after January 1, 1964, the tax im-
lowed against the amount of the tax. posed upon a single individual, a head
See part IV (section 31 and following), of a household, a married individual
subchapter A, chapter 1 of the Code. In filing a separate return, and estates
general, the tax is payable upon the and trusts is the tax imposed by sec-
basis of returns rendered by persons tion 1 determined in accordance with
liable therefor (subchapter A (sections the appropriate table contained in the
6001 and following), chapter 61 of the following subsection of section 1:
Taxable years beginning after Dec. 31,
Taxable years beginning
Taxable years beginning 1970 (references in this column are to
after 1964 but before
in 1964 the Code as amended by the Tax Reform
1971 Act of 1969)
Single individual .................. Sec. 1(a)(1) ..................... Sec. 1(a)(2) ..................... Sec. 1(c).
Head of a household .......... Sec. 1(b)(1) ..................... Sec. 1(b)(2) ..................... Sec. 1(b).
Married individual filing a Sec. 1(a)(1) ..................... Sec. 1(a)(2) ..................... Sec. 1(d).
separate return.
Estates and trusts ............... Sec. 1(a)(1) ..................... Sec. 1(a)(2) ..................... Sec. 1(d).
(ii) For taxable years beginning after come tax for the bracket in which that
December 31, 1970, the tax imposed by amount falls in the appropriate table
section 1(d), as amended by the Tax Re- in section 1 the income tax upon the
form Act of 1969, shall apply to the in- excess of that amount over the bottom
come effectively connected with the of the bracket at the rate indicated in
conduct of a trade or business in the such table.
United States by a married alien indi- (4) The provisions of section 1 of the
vidual who is a nonresident of the Code, as amended by the Tax Reform
United States for all or part of the tax- Act of 1969, and of this paragraph may
able year or by a foreign estate or be illustrated by the following exam-
trust. For such years the tax imposed ples:
by section 1(c), as amended by such Example 1. A, an unmarried individual, had
Act, shall apply to the income effec- taxable income for the calendar year 1964 of
tively connected with the conduct of a $15,750. Accordingly, the tax upon such tax-
trade or business in the United States able income would be $4,507.50, computed as
by an unmarried alien individual (other follows from the table in section 1(a)(1):
than a surviving spouse) who is a non- Tax on $14,000 (from table) ................................ $3,790.00
Tax on $1,750 (at 41 percent as determined
resident of the United States for all or from the table) .................................................. 717.50
part of the taxable year. See paragraph
(b)(2) of § 1.871–8. Total tax on $15,750 ............................. 4,507.50
(3) The income tax imposed by sec- Example 2. Assume the same facts as in ex-
tion 1 upon any amount of taxable in- ample (1), except the figures are for the cal-
come is computed by adding to the in- endar year 1965. The tax upon such taxable
§ 1.1–2 26 CFR Ch. I (4–1–00 Edition)
income would be $4,232.50, computed as fol- order of a naturalization court is an
lows from the table in section 1(a)(2): alien.
Tax on $14,000 (from table) ................................ $3,550.00
Tax on $1,750 (at 39 percent as determined [T.D. 6500, 25 FR 11402, Nov. 26, 1960, as
from the table) .................................................. 682.50 amended by T.D. 7332, 39 FR 44216, Dec. 23,
1974]
Total tax on $15,750 ............................. 4,232.50
Example 3. Assume the same facts as in ex- § 1.1–2 Limitation on tax.

ample (1), except the figures are for the cal- (a) Taxable years ending before Janu-
endar year 1971. The tax upon such taxable ary 1, 1971. For taxable years ending be-
income would be $3,752.50, computed as fol-
fore January 1, 1971, the tax imposed by
lows from the table in section 1(c), as amend-
ed: section 1 (whether by subsection (a) or
Tax on $14,000 (from table) ................................ $3,210.00
subsection (b) thereof) shall not exceed
Tax on $1,750 (at 31 percent as determined 87 percent of the taxable income for the
from the table) .................................................. 542.50 taxable year. For purposes of deter-
mining this limitation the tax under
Total tax on $15,750 ............................. 3,752.50
section 1 (a) or (b) and the tax at the
(b) Citizens or residents of the United 87-percent rate shall each be computed
States liable to tax. In general, all citi- before the allowance of any credits
zens of the United States, wherever against the tax. Where the alternative
resident, and all resident alien individ- tax on capital gains is imposed under
uals are liable to the income taxes im- section 1201(b), the 87-percent limita-
posed by the Code whether the income tion shall apply only to the partial tax
is received from sources within or computed on the taxable income re-
without the United States. Pursuant to duced by 50 percent of the excess of net
section 876, a nonresident alien indi- long-term capital gains over net short-
vidual who is a bona fide resident of term capital losses. Where, for pur-
Puerto Rico during the entire taxable poses of computations under the in-
year is, except as provided in section come averaging provisions, section
933 with respect to Puerto Rican source 1201(b) is treated as imposing the alter-
income, subject to taxation in the native tax on capital gains computed
same manner as a resident alien indi- under section 1304(e)(2), the 87-percent
vidual. As to tax on nonresident alien limitation shall apply only to the tax
individuals, see sections 871 and 877. equal to the tax imposed by section 1,
(c) Who is a citizen. Every person born reduced by the amount of the tax im-
or naturalized in the United States and posed by section 1 which is attributable
subject to its jurisdiction is a citizen. to capital gain net income for the com-
For other rules governing the acquisi- putation year.
tion of citizenship, see chapters 1 and 2 (b) Taxable years beginning after De-
of title III of the Immigration and Na- cember 31, 1970. If, for any taxable year
tionality Act (8 U.S.C. 1401–1459). For beginning after December 31, 1970, an
rules governing loss of citizenship, see individual has earned taxable income
sections 349 to 357, inclusive, of such which exceeds his taxable income as
Act (8 U.S.C. 1481–1489), Schneider v. defined by section 1348, the tax imposed
Rusk, (1964) 377 U.S. 163, and Rev. Rul. by section 1, as amended by the Tax
70–506, C.B. 1970–2, 1. For rules per- Reform Act of 1969, shall not exceed
taining to persons who are nationals the sum computed under the provisions
but not citizens at birth, e.g., a person of section 1348. For imposition of min-
born in American Samoa, see section imum tax for tax preferences see sec-
308 of such Act (8 U.S.C. 1408). For spe- tions 56 through 58.
cial rules applicable to certain expatri-
[T.D. 7117, 36 FR 9397, May 25, 1971]
ates who have lost citizenship with a
principal purpose of avoiding certain § 1.1–3 Change in rates applicable to
taxes, see section 877. A foreigner who taxable year.
has filed his declaration of intention of
becoming a citizen but who has not yet For computation of the tax for a tax-
been admitted to citizenship by a final able year during which a change in the
10
Chicago Sun
Sun-Times reports IRS employees

allegedly taking bribes.
Chicago Sun-Times article, dated Sunday, July 30,
2000, reports "Hidden eavesdropping devices
placed in Chicago and south suburban Internal
Revenue Service offices helped snare eight IRS
employees allegedly taking bribes to give
taxpayers a break..."
icon below.
http://www.eddiekahn.com/REF/BribesAtTheIRS.htm [1/13/2004 8:13:18 PM]

Communist Manifesto - 10 Planks
Communist Manifesto
The Communist Manifesto - Written by Karl Marx many years ago. He stated at the time that if
he could get a country to implement 5 of the 10 planks, the Communists would be able to take over
the country without firing a shot. The red planks depict what is currently implemented in the
USA.
icon below.
http://www.eddiekahn.com/REF/communist_manifesto.htm [1/13/2004 8:13:19 PM]

The Communist Manifesto
1. Abolition of property in land and the application of all rents of land to public purposes.
(zoning laws are the first step to government property ownership)
2. A heavy progressive or graduated income tax. (need we say anything!)
3. Abolition of all rights of inheritance. (read inheritance taxes)
4. Confiscation of the property of all emigrants and rebels. (read the accused, not the
convicted - Asset forfeiture laws, DEA, IRS, ATF etc...)
5. Centralization of credit in the hands of the state, by means of a national bank with State
capital and an exclusive monopoly. (read Federal Reserve Bank, Fiat Paper Money and
fractional reserve banking)
6. Centralization of the means of communications and transportation in the hands of the

State. (read DOT, FAA, FCC etc...)
7. Extension of factories and instruments of production owned by the state, the bringing
into cultivation of waste lands, and the improvement of the soil generally in accordance
with a common plan. (read "controlled" rather than "owned," or subsidized)
8. Equal liability of all to labor. Establishment of industrial armies, especially for

agriculture. (read Minimum Wage and slave labor… You know like in China, our Most
Favored Nation trade partner. Can you figure out why we are partnered with communists?)
9. Combination of agriculture with manufacturing industries, gradual abolition of the

distinction between town and country, by a more equitable distribution of population over
the country. (read forced relocations and forced sterilization programs, you know, like in
China.)
10. Free education for all children in public schools. Abolition of children's factory labor
in its present form. Combination of education with industrial production. (so that all
children can be indoctrinated and inculcated with the government propaganda, like "majority
rules," and "pay your fair share." I defy you to show me the words "fair share" anywhere in the
Constitution, Bill of Rights or the Internal Revenue Code (Title 26). ANYWHERE!! The
whole philosophical concept of "fair share" comes from the Communist maxim, "From each
according to their ability, to each according to their need" - the very concept is pure socialism.)
Congressional Record 16th Amendment

1913 Income Tax Law Congressional Debate Record - The 16th
amendment prompted this debate. They discussed what will NOT be
taxed.
icon below.
http://www.eddiekahn.com/REF/congressional_record_16th_amendm.htm [1/13/2004 8:13:19 PM]


This page was last updated Tuesday, September 03, 2002
The Ron Paul

FREEDOM PRINCIPLES
● Rights belong to individuals, not groups.
● Property should be owned by people, not
government.
● All voluntary associations should be
permissionable - economic and social.
● The government's monetary role is to
maintain the integrity of the monetary
unit, not participate in fraud.
● Government exists to protect liberty, not
to redistribute wealth or to grant special
privileges.
● The lives and actions of people are their
own responsibility, not the government's.
Honorable Ron Paul
http://www.eddiekahn.com/congressmen_who_speak_the_truth.htm (1 of 21) [1/13/2004 8:13:22 PM]

Congressman Ron Paul, House of Representatives, November 29, 2001

Keep Your Eye on the Target
Mr. Speaker:
We have been told on numerous occasions to expect a long and protracted war. This
is not necessary if one can identify the target- the enemy- and then stay focused on
that target. It's impossible to keep one's eye on a target and hit it if one does not
precisely understand it and identify it. In pursuing any military undertaking, it's the
responsibility of Congress to know exactly why it appropriates the funding. Today, unlike
any time in our history, the enemy and its location remain vague and pervasive. In the
undeclared wars of Vietnam and Korea, the enemy was known and clearly defined, even
though our policies were confused and contradictory. Today our policies relating to the
growth of terrorism are also confused and contradictory; however, the precise enemy and
its location are not known by anyone. Until the enemy is defined and understood, it cannot
be accurately targeted or vanquished.
The terrorist enemy is no more an entity than the "mob" or some international
criminal gang. It certainly is not a country, nor is it the Afghan people. The Taliban
is obviously a strong sympathizer with bin Laden and his henchmen, but how much
more so than the government of Saudi Arabia or even Pakistan? Probably not much.
Ulterior motives have always played a part in the foreign policy of almost every nation
throughout history. Economic gain and geographic expansion, or even just the desires for
more political power, too often drive the militarism of all nations. Unfortunately, in recent
years, we have not been exempt. If expansionism, economic interests, desire for
hegemony, and influential allies affect our policies and they, in turn, incite mob attacks
against us, they obviously cannot be ignored. The target will be illusive and ever
enlarging, rather than vanquished.
We do know a lot about the terrorists who spilled the blood of nearly 4,000 innocent
civilians. There were 19 of them, 15 from Saudi Arabia, and they have paid a high
price. They're all dead. So those most responsible for the attack have been permanently
taken care of. If one encounters a single suicide bomber who takes his own life along with
others without the help of anyone else, no further punishment is possible. The only
question that can be raised under that circumstance is why did it happen and how can we
change the conditions that drove an individual to perform such a heinous act.
The terrorist attacks on New York and Washington are not quite so simple, but they are
similar. These attacks required funding, planning and inspiration from others. But the total
number of people directly involved had to be relatively small in order to have kept the
plans thoroughly concealed. Twenty accomplices, or even a hundred could have done it.
But there's no way thousands of people knew and participated in the planning and carrying

out of this attack. Moral support expressed by those who find our policies offensive is a
different matter and difficult to discover. Those who enjoyed seeing the U.S. hit are too
numerous to count and impossible to identify. To target and wage war against all of them
is like declaring war against an idea or sin.
The predominant nationality of the terrorists was Saudi Arabian. Yet for political
and economic reasons, even with the lack of cooperation from the Saudi government,
we have ignored that country in placing blame. The Afghan people did nothing to
deserve another war. The Taliban, of course, is closely tied to bin Laden and
al-Qaeda, but so are the Pakistanis and the Saudis. Even the United States was a
supporter of the Taliban's rise to power, and as recently as August of 2001, we talked
oil pipeline politics with them.
The recent French publication of bin Laden, The Forbidden Truth revealed our most
recent effort to secure control over Caspian Sea oil in collaboration with the Taliban.
According to the two authors, the economic conditions demanded by the U.S. were turned
down and led to U.S. military threats against the Taliban.
It has been known for years that Unocal, a U.S. company, has been anxious to build a
pipeline through northern Afghanistan, but it has not been possible due to the weak
Afghan central government. We should not be surprised now that many contend that
the plan for the UN to "nation build" in Afghanistan is a logical and important
consequence of this desire. The crisis has merely given those interested in this project
an excuse to replace the government of Afghanistan. Since we don't even know if bin
Laden is in Afghanistan, and since other countries are equally supportive of him, our
concentration on this Taliban "target" remains suspect by many.
Former FBI Deputy Director John O'Neill resigned in July over duplicitous dealings
with the Taliban and our oil interests. O'Neill then took a job as head of the World
Trade Center security and ironically was killed in the 9-11 attack. The charges made
by these authors in their recent publication deserve close scrutiny and congressional
oversight investigation- and not just for the historical record.
To understand world sentiment on this subject, one might note a comment in The Hindu,
India's national newspaper- not necessarily to agree with the paper's sentiment, but to
help us better understand what is being thought about us around the world in contrast to
the spin put on the war by our five major TV news networks.
This quote comes from an article written by Sitaram Yechury on October 13, 2001:
The world today is being asked to side with the U.S. in a fight against global terrorism.
This is only a cover. The world is being asked today, in reality, to side with the U.S. as it
seeks to strengthen its economic hegemony. This is neither acceptable nor will it be
allowed. We must forge together to state that we are neither with the terrorists nor with
the United States.
The need to define our target is ever so necessary if we're going to avoid letting this war
get out of control.

It's important to note that in the same article, the author quoted Michael Klare, an expert
on Caspian Sea oil reserves, from an interview on Radio Free Europe: "We (the U.S.)
view oil as a security consideration and we have to protect it by any means necessary,
regardless of other considerations, other values." This, of course, was a clearly stated
position of our administration in 1990 as our country was being prepared to fight the
Persian Gulf War. Saddam Hussein and his weapons of mass destruction only became the
issue later on.
For various reasons, the enemy with whom we're now at war remains vague and illusive.
Those who commit violent terrorist acts should be targeted with a rifle or hemlock- not
with vague declarations, with some claiming we must root out terrorism in as many as 60
countries. If we're not precise in identifying our enemy, it's sure going to be hard to keep
our eye on the target. Without this identification, the war will spread and be needlessly
prolonged.
Why is this definition so crucial? Because without it, the special interests and the
ill-advised will clamor for all kinds of expansive militarism. Planning to expand and fight
a never-ending war in 60 countries against worldwide terrorist conflicts with the notion
that, at most, only a few hundred ever knew of the plans to attack the World Trade Center
and the Pentagon. The pervasive and indefinable enemy- terrorism- cannot be conquered
with weapons and UN nation building- only a more sensible pro-American foreign policy
will accomplish this. This must occur if we are to avoid a cataclysmic expansion of the
current hostilities.
It was said that our efforts were to be directed toward the terrorists responsible for the
attacks, and overthrowing and instituting new governments were not to be part of the
agenda. Already we have clearly taken our eyes off that target and diverted it toward
building a pro-Western, UN-sanctioned government in Afghanistan. But if bin Laden can
hit us in New York and DC, what should one expect to happen once the US/UN
establishes a new government in Afghanistan with occupying troops. It seems that would
be an easy target for the likes of al Qaeda.
Since we don't know in which cave or even in which country bin Laden is hiding, we
hear the clamor of many for us to overthrow our next villain- Saddam Hussein-
guilty or not. On the short list of countries to be attacked are North Korea, Libya,
Syria, Iran, and the Sudan, just for starters. But this jingoistic talk is foolhardy and
dangerous. The war against terrorism cannot be won in this manner.
The drumbeat for attacking Baghdad grows louder every day, with Paul Wolfowitz, Bill
Kristol, Richard Perle, and Bill Bennett leading the charge. In a recent interview, U.S.
Deputy Defense Secretary Paul Wolfowitz, made it clear: "We are going to continue
pursuing the entire al Qaeda network which is in 60 countries, not just Afghanistan."
Fortunately, President Bush and Colin Powell so far have resisted the pressure to expand
the war into other countries. Let us hope and pray that they do not yield to the clamor of
the special interests that want us to take on Iraq.
The argument that we need to do so because Hussein is producing weapons of mass
destruction is the reddest of all herrings. I sincerely doubt that he has developed significant

weapons of mass destruction. However, if that is the argument, we should plan to

attack all those countries that have similar weapons or plans to build them- countries
like China, North Korea, Israel, Pakistan, and India. Iraq has been uncooperative with
the UN World Order and remains independent of western control of its oil reserves, unlike
Saudi Arabia and Kuwait. This is why she has been bombed steadily for 11 years by
the U.S. and Britain. My guess is that in the not-too-distant future, so-called proof will be
provided that Saddam Hussein was somehow partially responsible for the attack in the
United States, and it will be irresistible then for the U.S. to retaliate against him. This will
greatly and dangerously expand the war and provoke even greater hatred toward the
United States, and it's all so unnecessary.
It's just so hard for many Americans to understand how we inadvertently provoke the
Arab/Muslim people, and I'm not talking about the likes of bin Laden and his al Qaeda
gang. I'm talking about the Arab/Muslim masses.
In 1996, after five years of sanctions against Iraq and persistent bombings, CBS
reporter Lesley Stahl asked our Ambassador to the United Nations, Madeline
Albright, a simple question: "We have heard that a half million children have died
(as a consequence of our policy against Iraq). Is the price worth it?" Albright's
response was "We think the price is worth it." Although this interview won an
Emmy award, it was rarely shown in the U.S. but widely circulated in the Middle
East. Some still wonder why America is despised in this region of the world!
Former President George W. Bush has been criticized for not marching on to Baghdad at
the end of the Persian Gulf War. He gave then, and stands by his explanation today, a
superb answer of why it was ill-advised to attempt to remove Saddam Hussein from
power- there were strategic and tactical, as well as humanitarian, arguments against it. But
the important and clinching argument against annihilating Baghdad was political.
The coalition, in no uncertain terms, let it be known they wanted no part of it.
Besides, the UN only authorized the removal of Saddam Hussein from Kuwait. The
UN has never sanctioned the continued U.S. and British bombing of Iraq- a source of
much hatred directed toward the United States.
But placing of U.S. troops on what is seen as Muslim holy land in Saudi Arabia seems to
have done exactly what the former President was trying to avoid- the breakup of the
coalition. The coalition has hung together by a thread, but internal dissention among the
secular and religious Arab/Muslim nations within individual countries has intensified.
Even today, the current crisis threatens the overthrow of every puppet pro-western Arab
leader from Egypt to Saudi Arabia and Kuwait.
Many of the same advisors from the first Bush presidency are now urging the current
President to finish off Hussein. However, every reason given 11 years ago for not leveling
Baghdad still holds true today- if not more so.
It has been argued that we needed to maintain a presence in Saudi Arabia after the Persian
Gulf War to protect the Saudi government from Iraqi attack. Others argued that it was only
a cynical excuse to justify keeping troops to protect what our officials declared were "our"
oil supplies. Some have even suggested that our expanded presence in Saudi Arabia was

prompted by a need to keep King Fahd in power and to thwart any effort by Saudi
fundamentalists to overthrow his regime.
Expanding the war by taking on Iraq at this time may well please some allies, but it will
lead to unbelievable chaos in the region and throughout the world. It will incite even more
anti-American sentiment and expose us to even greater dangers. It could prove to be an
unmitigated disaster. Iran and Russia will not be pleased with this move.
It is not our job to remove Saddam Hussein- that is the job of the Iraqi people. It is not our
job to remove the Taliban- that is the business of the Afghan people. It is not our job to
insist that the next government in Afghanistan include women, no matter how good
an idea it is. If this really is an issue, why don't we insist that our friends in Saudi
Arabia and Kuwait do the same thing, as well as impose our will on them? Talk
about hypocrisy! The mere thought that we fight wars for affirmative action in a country
6,000 miles from home, with no cultural similarities, should insult us all. Of course it does
distract us from the issue of an oil pipeline through northern Afghanistan. We need to keep
our eye on the target and not be so easily distracted.
Assume for a minute that bin Laden is not in Afghanistan. Would any of our military
efforts in that region be justified? Since none of it would be related to American security,
it would be difficult to justify.
Assume for a minute that bin Laden is as ill as I believe he is with serious renal disease,
would he not do everything conceivable for his cause by provoking us into expanding the
war and alienating as many Muslims as possible?
Remember, to bin Laden, martyrdom is a noble calling, and he just may be more powerful
in death than he is in life. An American invasion of Iraq would please bin Laden, because
it would rally his troops against any moderate Arab leader who appears to be supporting
the United States. It would prove his point that America is up to no good, that oil and Arab
infidels are the source of all the Muslims' problems.
We have recently been reminded of Admiral Yamamoto's quote after the bombing of Pearl
Harbor in expressing his fear that the event "Awakened a sleeping giant." Most everyone
agrees with the prophetic wisdom of that comment. But I question the accuracy of drawing
an analogy between the Pearl Harbor event and the World Trade Center attack. We are
hardly the same nation we were in 1941. Today, we're anything but a sleeping giant.
There's no contest for our status as the world's only economic, political and military super
power. A "sleeping giant" would not have troops in 141 countries throughout the
world and be engaged in every conceivable conflict with 250,000 troops stationed
abroad.
The fear I have is that our policies, along with those of Britain, the UN, and NATO
since World War II, inspired and have now awakened a long-forgotten sleeping
giant- Islamic fundamentalism.
Let's hope for all our sakes that Iraq is not made the target in this complex war.
The President, in the 2000 presidential campaign, argued against nation building, and he

was right to do so. He also said, "If we're an arrogant nation, they'll resent us." He wisely
argued for humility and a policy that promotes peace. Attacking Baghdad or declaring war
against Saddam Hussein, or even continuing the illegal bombing of Iraq, is hardly a policy
of humility designed to promote peace.
As we continue our bombing of Afghanistan, plans are made to install a new government
sympathetic to the West and under UN control. The persuasive argument as always is
money. We were able to gain Pakistan's support, although it continually wavers, in this
manner. Appropriations are already being prepared in the Congress to rebuild all that we
destroy in Afghanistan, and then some- even before the bombing has stopped.
Rumsfeld's plan, as reported in Turkey's Hurriyet newspaper, lays out the plan for the next
Iraqi government. Turkey's support is crucial, so the plan is to give Turkey oil from the
northern Iraq Karkuk field. The United States has also promised a pipeline running from
Iraq through Turkey. How can the Turks resist such a generous offer? Since we subsidize
Turkey and they bomb the Kurds, while we punish the Iraqis for the same, this plan to
divvy up wealth in the land of the Kurds is hardly a surprise.
It seems that Washington never learns. Our foolish foreign interventions continually get us
into more trouble than we have bargained for- and the spending is endless. I am not
optimistic that this Congress will anytime soon come to its senses. I am afraid that we will
never treat the taxpayers with respect. National bankruptcy is a more likely scenario than
Congress adopting a frugal and wise spending policy.
Mr. Speaker, we must make every effort to precisely define our target in this war and keep
our eye on it.
It is safe to assume that the number of people directly involved in the 9-11 attacks is closer
to several hundred than the millions we are now talking about targeting with our planned
shotgun approach to terrorism.
One commentator pointed out that when the mafia commits violence, no one suggests
we bomb Sicily. Today it seems we are, in a symbolic way, not only bombing "Sicily,"
but are thinking about bombing "Athens" (Iraq).
If a corrupt city or state government does business with a drug cartel or organized
crime and violence results, we don't bomb city hall or the state capital- we limit the
targets to those directly guilty and punish them. Could we not learn a lesson from
these examples?
It is difficult for everyone to put the 9-11 attacks in a proper perspective, because any
attempt to do so is construed as diminishing the utter horror of the events of that day. We
must remember, though, that the 3,900 deaths incurred in the World Trade Center attacks
are just slightly more than the deaths that occur on our nation's highways each month.
Could it be that the sense of personal vulnerability we survivors feel motivates us in
meting out justice, rather than the concern for the victims of the attacks? Otherwise, the
numbers don't add up to the proper response. If we lose sight of the target and unwisely
broaden the war, the tragedy of 9-11 may pale in the death and destruction that could lie
ahead.

As members of Congress, we have a profound responsibility to mete out justice, provide

security for our nation, and protect the liberties of all the people, without senselessly
expanding the war at the urging of narrow political and economic special interests. The
price is too high, and the danger too great. We must not lose our focus on the real target
and inadvertently create new enemies for ourselves.
We have not done any better keeping our eye on the terrorist target on the home front than
we have overseas. Not only has Congress come up short in picking the right target, it has
directed all its energies in the wrong direction. The target of our efforts has sadly been
the liberties all Americans enjoy. With all the new power we have given to the
administration, none has truly improved the chances of catching the terrorists who
were responsible for the 9-11 attacks. All Americans will soon feel the consequences
of this new legislation.
Just as the crisis provided an opportunity for some to promote a special-interest
agenda in our foreign policy efforts, many have seen the crisis as a chance to achieve
changes in our domestic laws, changes which, up until now, were seen as dangerous
and unfair to American citizens.
Granting bailouts is not new for Congress, but current conditions have prompted many
takers to line up for handouts. There has always been a large constituency for
expanding federal power for whatever reason, and these groups have been energized.
The military-industrial complex is out in full force and is optimistic. Union power is
pleased with recent events and has not missed the opportunity to increase
membership rolls. Federal policing powers, already in a bull market, received a
super shot in the arm. The IRS, which detests financial privacy, gloats, while all the
big spenders in Washington applaud the tools made available to crack down on tax
dodgers. The drug warriors and anti-gun zealots love the new powers that now can
be used to watch the every move of our citizens. "Extremists" who talk of the
Constitution, promote right-to-life, form citizen militias, or participate in
non-mainstream religious practices now can be monitored much more effectively by
those who find their views offensive. Laws recently passed by the Congress apply to
all Americans- not just terrorists. But we should remember that if the terrorists are
known and identified, existing laws would have been quite adequate to deal with
them.
Even before the passage of the recent draconian legislation, hundreds had already been
arrested under suspicion, and millions of dollars of al Qaeda funds had been frozen. None
of these new laws will deal with uncooperative foreign entities like the Saudi government,
which chose not to relinquish evidence pertaining to exactly who financed the terrorists'
operations. Unfortunately, the laws will affect all innocent Americans, yet will do nothing
to thwart terrorism.
The laws recently passed in Congress in response to the terrorist attacks can be compared
to the effort by anti-gun fanatics, who jump at every chance to undermine the Second
Amendment. When crimes are committed with the use of guns, it's argued that we must
remove guns from society, or at least register them and make it difficult to buy them. The

counter argument made by Second Amendment supporters correctly explains that this
would only undermine the freedom of law-abiding citizens and do nothing to keep guns
out of the hands of criminals or to reduce crime.
Now we hear a similar argument that a certain amount of privacy and personal liberty of
law-abiding citizens must be sacrificed in order to root out possible terrorists. This will
result only in liberties being lost, and will not serve to preempt any terrorist act. The
criminals, just as they know how to get guns even when they are illegal, will still be able
to circumvent anti-terrorist laws. To believe otherwise is to endorse a Faustian bargain, but
that is what I believe the Congress has done.
We know from the ongoing drug war that federal drug police frequently make
mistakes, break down the wrong doors and destroy property. Abuses of seizure and
forfeiture laws are numerous. Yet the new laws will encourage even more mistakes
by federal law-enforcement agencies. It has long been forgotten that law enforcement
in the United States was supposed to be a state and local government responsibility,
not that of the federal government. The federal government's policing powers have
just gotten a giant boost in scope and authority through both new legislation and
executive orders.
Before the 9-11 attack, Attorney General Ashcroft let his position be known regarding
privacy and government secrecy. Executive Order 13223 made it much more difficult
for researchers to gain access to presidential documents from previous
administrations, now a "need to know" has to be demonstrated. This was a direct hit at
efforts to demand openness in government, even if only for analysis and writing of history.
Ashcroft's position is that presidential records ought to remain secret, even after an
administration has left office. He argues that government deserves privacy while
ignoring the 4th Amendment protections of the people's privacy. He argues his case by
absurdly claiming he must "protect"the privacy of the individuals who might be involved-
a non-problem that could easily be resolved without closing public records to the public.
It is estimated that approximately 1,200 men have been arrested as a consequence of
9-11, yet their names and the charges are not available, and according to Ashcroft,
will not be made available. Once again, he uses the argument that he's protecting the
privacy of those charged. Unbelievable! Due process for the detainees has been denied.
Secret government is winning out over open government. This is the largest number of
people to be locked up under these conditions since FDR's internment of
Japanese-Americans during World War II. Information regarding these arrests is a
must, in a constitutional republic. If they're terrorists or accomplices, just let the public
know and pursue their prosecution. But secret arrests and silence are not acceptable in
a society that professes to be free. Curtailing freedom is not the answer to protecting
freedom under adverse circumstances.
The administration has severely curtailed briefings regarding the military operation in
Afghanistan for congressional leaders, ignoring a long-time tradition in this country. One
person or one branch of government should never control military operations. Our
system of government has always required a shared-power arrangement.

The Anti-Terrorism Bill did little to restrain the growth of big government. In the name of
patriotism, the Congress did some very unpatriotic things. Instead of concentrating on the
persons or groups that committed the attacks on 9-11, our efforts, unfortunately, have
undermined the liberties of all Americans.
"Know Your Customer" type banking regulations, resisted by most Americans for years,
have now been put in place in an expanded fashion. Not only will the regulations affect
banks, thrifts and credit unions, but also all businesses will be required to file
suspicious transaction reports if cash is used with the total of the transaction
reaching $10,000. Retail stores will be required to spy on all their customers and send
reports to the U.S. government. Financial services consultants are convinced that this new
regulation will affect literally millions of law-abiding American citizens. The odds that
this additional paperwork will catch a terrorist are remote. The sad part is that the
regulations have been sought after by federal law-enforcement agencies for years.
The 9-11 attacks have served as an opportunity to get them by the Congress and the
American people.
Only now are the American people hearing about the onerous portions of the
anti-terrorism legislation, and they are not pleased.
It's easy for elected officials in Washington to tell the American people that the
government will do whatever it takes to defeat terrorism. Such assurances inevitably are
followed by proposals either to restrict the constitutional liberties of the American people
or to spend vast sums of money from the federal treasury. The history of the 20th
Century shows that the Congress violates our Constitution most often during times of
crisis. Accordingly, most of our worst unconstitutional agencies and programs began
during the two World Wars and the Depression. Ironically, the Constitution itself was
conceived in a time of great crisis. The founders intended its provision to place severe
restrictions on the federal government, even in times of great distress. America must
guard against current calls for government to sacrifice the Constitution in the name
of law enforcement.
The "anti-terrorism" legislation recently passed by Congress demonstrates how
well-meaning politicians make shortsighted mistakes in a rush to respond to a crisis. Most
of its provisions were never carefully studied by Congress, nor was sufficient time
taken to debate the bill despite its importance. No testimony was heard from privacy
experts or from others fields outside of law enforcement. Normal congressional
committee and hearing processes were suspended. In fact, the final version of the bill
was not even made available to Members before the vote! The American public
should not tolerate these political games, especially when our precious freedoms are
at stake.
Almost all of the new laws focus on American citizens rather than potential foreign
terrorists. For example, the definition of "terrorism," for federal criminal purposes, has
been greatly expanded A person could now be considered a terrorist by belonging to a
pro-constitution group, a citizen militia, or a pro-life organization. Legitimate
protests against the government could place tens of thousands of other Americans

under federal surveillance. Similarly, internet use can be monitored without a user's
knowledge, and internet providers can be forced to hand over user information to
law-enforcement officials without a warrant or subpoena.
The bill also greatly expands the use of traditional surveillance tools, including
wiretaps, search warrants, and subpoenas. Probable-cause standards for these tools are
relaxed, or even eliminated in some circumstances. Warrants become easier to obtain and
can be executed without notification. Wiretaps can be placed without a court order. In
fact, the FBI and CIA now can tap phones or computers nationwide, without
demonstrating that a criminal suspect is using a particular phone or computer.
The biggest problem with these new law-enforcement powers is that they bear little
relationship to fighting terrorism. Surveillance powers are greatly expanded, while
checks and balances on government are greatly reduced. Most of the provisions have been
sought by domestic law-enforcement agencies for years, not to fight terrorism, but rather
to increase their police power over the American people. There is no evidence that our
previously held civil liberties posed a barrier to the effective tracking or prosecution of
terrorists. The federal government has made no showing that it failed to detect or prevent
the recent terrorist strikes because of the civil liberties that will be compromised by this
new legislation.
In his speech to the joint session of Congress following the September 11th attacks,
President Bush reminded all of us that the United States outlasted and defeated Soviet
totalitarianism in the last century. The numerous internal problems in the former
Soviet Union- its centralized economic planning and lack of free markets, its
repression of human liberty and its excessive militarization- all led to its inevitable
collapse. We must be vigilant to resist the rush toward ever-increasing state control
of our society, so that our own government does not become a greater threat to our
freedoms than any foreign terrorist.
The executive order that has gotten the most attention by those who are concerned
that our response to 9-11 is overreaching and dangerous to our liberties is the one
authorizing military justice, in secret. Nazi war criminals were tried in public, but plans
now are laid to carry out the trials and punishment, including possibly the death
penalty, outside the eyes and ears of the legislative and judicial branches of
government and the American public. Since such a process threatens national security
and the Constitution, it cannot be used as a justification for their protection.
Some have claimed this military tribunal has been in the planning stages for five
years. If so, what would have been its justification?
The argument that FDR did it and therefore it must be OK is a rather weak justification.
Roosevelt was hardly one that went by the rule book- the Constitution. But the situation
then was quite different from today. There was a declared war by Congress against a
precise enemy, the Germans, who sent eight saboteurs into our country. Convictions
were unanimous, not 2/3 of the panel, and appeals were permitted. That's not what's
being offered today. Furthermore, the previous military tribunals expired when the war
ended. Since this war will go on indefinitely, so too will the courts.

The real outrage is that such a usurpation of power can be accomplished with the
stroke of a pen. It may be that we have come to that stage in our history when an
executive order is "the law of the land," but it's not "kinda cool," as one member of
the previous administration bragged. It's a process that is unacceptable, even in this
professed time of crisis.
There are well-documented histories of secret military tribunals. Up until now, the United
States has consistently condemned them. The fact that a two-thirds majority can
sentence a person to death in secrecy in the United States is scary. With no appeals
available, and no defense attorneys of choice being permitted, fairness should compel
us to reject such a system outright.
Those who favor these trials claim they are necessary to halt terrorism in its tracks. We are
told that only terrorists will be brought before these tribunals. This means that the
so-called suspects must be tried and convicted before they are assigned to this type of
"trial" without due process. They will be deemed guilty by hearsay, in contrast to the
traditional American system of justice where all are innocent until proven guilty. This
turns the justice system on its head.
One cannot be reassured by believing these courts will only apply to foreigners who are
terrorists. Sloppiness in convicting criminals is a slippery slope. We should not forget
that the Davidians at Waco were "convicted" and demonized and slaughtered
outside our judicial system, and they were, for the most part, American citizens.
Randy Weaver's family fared no better.
It has been said that the best way for us to spread our message of freedom, justice and
prosperity throughout the world is through example and persuasion, not through force of
arms. We have drifted a long way from that concept. Military courts will be another bad
example for the world. We were outraged in 1996 when Lori Berenson, an American
citizen, was tried, convicted, and sentenced to life by a Peruvian military court.
Instead of setting an example, now we are following the lead of a Peruvian dictator.
The ongoing debate regarding the use of torture in rounding up the criminals involved in
the 9-11 attacks is too casual. This can hardly represent progress in the cause of liberty and
justice. Once government becomes more secretive, it is more likely this tool will be
abused. Hopefully the Congress will not endorse or turn a blind eye to this barbaric
proposal. For every proposal made to circumvent the justice system, it's intended that we
visualize that these infractions of the law and the Constitution will apply only to terrorists
and never involve innocent U.S. citizens. This is impossible, because someone has to
determine exactly who to bring before the tribunal, and that involves all of us. That is too
much arbitrary power for anyone to be given in a representative government and is more
characteristic of a totalitarian government.
Many throughout the world, especially those in Muslim countries, will be convinced
by the secretive process that the real reason for military courts is that the U.S. lacks
sufficient evidence to convict in an open court. Should we be fighting so strenuously the
war against terrorism and carelessly sacrifice our traditions of American justice? If we do,

the war will be for naught and we will lose, even if we win.
Congress has a profound responsibility in all of this and should never concede this
power to a President or an Attorney General. Congressional oversight powers must be
used to their fullest to curtail this unconstitutional assumption of power.
The planned use of military personnel to patrol our streets and airports is another
challenge of great importance that should not go uncontested. For years, many in
Washington have advocated a national approach to all policing activity. This current crisis
has given them a tremendous boost. Believe me, this is no panacea and is a dangerous
move. The Constitution never intended that the federal government assume this
power. This concept was codified in the Posse Comitatus Act of 1878. This act
prohibits the military from carrying out law-enforcement duties such as searching or
arresting people in the United States, the argument being that the military is only
used for this type of purpose in a police state. Interestingly, it was the violation of
these principles that prompted the Texas Revolution against Mexico. The military
under the Mexican Constitution at that time was prohibited from enforcing civil
laws, and when Santa Anna ignored this prohibition, the revolution broke out. We
should not so readily concede the principle that has been fought for on more than one
occasion in this country.
The threats to liberty seem endless. It seems we have forgotten to target the enemy.
Instead we have inadvertently targeted the rights of American citizens. The crisis has
offered a good opportunity for those who have argued all along for bigger
government.
For instance, the military draft is the ultimate insult to those who love personal liberty.
The Pentagon, even with the ongoing crisis, has argued against the reinstatement of the
draft. Yet the clamor for its reinstatement grows louder daily by those who wanted a return
to the draft all along. I see the draft as the ultimate abuse of liberty. Morally it cannot be
distinguished from slavery. All the arguments for drafting 18-year old men and women
and sending them off to foreign wars are couched in terms of noble service to the country
and benefits to the draftees. The need-for-discipline argument is the most common reason
given, after the call for service in an effort to make the world safe for democracy. There
can be no worse substitute for the lack of parental guidance of teenagers than the federal
government's domineering control, forcing them to fight an enemy they don't even know
in a country they can't even identity.
Now it's argued that since the federal government has taken over the entire job of
homeland security, all kinds of jobs can be found for the draftees to serve the state, even
for those who are conscientious objectors.
The proponents of the draft call it "mandatory service." Slavery, too, was
mandatory, but few believed it was a service. They claim that every 18-year old owes at
least two years of his life to his country. Let's hope the American people don't fall for this
"need to serve" argument. The Congress should refuse to even consider such a proposal.
Better yet, what we need to do is abolish the Selective Service altogether.

However, if we get to the point of returning to the draft, I have a proposal. Every
news commentator, every Hollywood star, every newspaper editorialist, and every
Member of Congress under the age of 65 who has never served in the military and
who demands that the draft be reinstated, should be drafted first- the 18-year olds
last. Since the Pentagon says they don't need draftees, these new recruits can be the
first to march to the orders of the general in charge of homeland security. For those
less robust individuals, they can do the hospital and cooking chores for the rest of the
newly formed domestic army. After all, someone middle aged owes a lot more to his
country than an 18-year old.
I'm certain that this provision would mute the loud demands for the return of the
military draft.
I see good reason for American citizens to be concerned- not only about another terrorist
attack, but for their own personal freedoms as the Congress deals with the crisis. Personal
freedom is the element of the human condition that has made America great and
unique and something we all cherish. Even those who are more willing to sacrifice a
little freedom for security do it with the firm conviction that they are acting in the best
interest of freedom and justice. However, good intentions can never suffice for sound
judgment in the defense of liberty.
I do not challenge the dedication and sincerity of those who disagree with the freedom
philosophy and confidently promote government solutions for all our ills. I am just
absolutely convinced that the best formula for giving us peace and preserving the
American way of life is freedom, limited government, and minding our own business
overseas.
Henry Grady Weaver, author of a classic book on freedom, The Mainspring of Human
Progress, years ago warned us that good intentions in politics are not good enough and
actually are dangerous to the cause. Weaver stated:
"Most of the major ills of the world have been caused by well-meaning people who
ignored the principle of individual freedom, except as applied to themselves, and who
were obsessed with fanatical zeal to improve the lot of mankind-in-the-mass through some
pet formula of their own. The harm done by ordinary criminals, murderers, gangsters,
and thieves is negligible in comparison with the agony inflicted upon human beings by
the professional do-gooders, who attempt to set themselves up as gods on earth and who
would ruthlessly force their views on all others- with the abiding assurance that the end
justifies the means."
This message is one we should all ponder.
The emphasis (bold sections) were added by Eddie. To read the original speech click
HERE

A SAD STATE OF AFFAIRS -- (House of Representatives - October 25, 2001)

The SPEAKER pro tempore. Under the Speaker's announced policy of January 3,
2001, the gentleman from Texas (Mr. PAUL) is recognized for 60 minutes as the
designee of the majority leader.
Mr. PAUL. Mr. Speaker, it breaks my heart to see what is happening to our
country today. All Americans have grieved over the losses suffered on 9-11. The grief
for those who lost loved ones is beyond description. These losses have precipitated
unprecedented giving to help the families left behind. Unless one has suffered
directly, it is difficult to fully comprehend the tragic and sudden loss of close friends
and family.
There are some who, in addition to feeling this huge sense of personal loss that all
Americans share, grieve for other serious and profound reasons. For instance, many
thoughtful Americans are convinced that the tragedy of 9-11 was preventable. Since
that might be true, this provokes a tragic sadness, especially for those who
understand how the events of 9-11 needlessly came about.
The reason why this is so sad and should be thoroughly understood is that so often
the ones who suggest how our policies may have played a role in evoking the attacks
are demonized as unpatriotic and are harshly dismissed as belonging to the "blame
America crowd.''
Those who are so anxious to condemn do not realize that the policies of the
American Government, designed by politicians and bureaucrats, are not always
synonymous with American ideals. The country is not the same as the Government.
The spirit of America is hardly something for which the Government holds a
monopoly on defining.
America's heart and soul is more embedded in our love of liberty, self-reliance, and
tolerance than by our foreign policy, driven by powerful special interests with little
regard for the Constitution.
Throughout our early history, a policy of minding our own business and avoiding
entangling alliances, as George Washington admonished, was more representative of
American ideals than those we have pursued for the past 50 years. Some sincere
Americans have suggested that our modern interventionist policy set the stage for the
attacks of 9-11, and for this, they are condemned as being unpatriotic.
This compounds the sadness and heartbreak that some Americans are feeling.
Threats, loss of jobs, censorship and public mockery have been heaped upon those
who have made this suggestion. Freedom of expression and thought, the bedrock of
the American Republic, is now too often condemned as something viciously evil. This
should cause freedom-loving Americans to weep from broken hearts.
Another reason the hearts of many Americans are heavy with grief is because they
dread what might come from the many new and broad powers the Government is

demanding in the name of providing security. Daniel Webster once warned, ``Human
beings will generally exercise power when they can get it, and they will exercise it
most undoubtedly in popular governments under pretense of public safety.''
A strong case can be made that the Government regulations, along with a lack of
private property responsibility, contributed to this tragedy, but what is proposed?
More regulations and even a takeover of all airport security by the Government.
We are not even considering restoring the rights of pilots to carry weapons for
self-defense as one of the solutions. Even though pilots once carried guns to protect
the mail and armored truck drivers can still carry guns to protect money, protecting
passengers with guns is prohibited on commercial flights. The U.S. Air Force can
shoot down a wayward aircraft, but a pilot cannot shoot down an armed terrorist.
It will be difficult to solve our problems with this attitude toward airport security.
Civil liberties are sure to suffer under today's tensions, with the people demanding
that the politicians do something, anything. Should those who object to the rapid
move toward massively increasing the size and scope of the Federal Government in
local law enforcement be considered un-American because they defend the principles
they truly understand to be American?
Any talk of spending restraint is now a thing of the past. We had one anthrax
death, and we are asked the next day for a billion dollar appropriations to deal with
the problem.
And a lot more will be appropriated before it is all over. What about the 40,000
deaths per year on government-run highways and the needless deaths associated with
the foolish and misdirected war on drugs? Why should anyone be criticized for
trying to put this in proper perspective?
Countless groups are now descending on Washington with their hands out. As
usual with any disaster, this disaster is being parlayed into an "opportunity," as one
former Member of the Congress phrased it. The economic crisis that started a long
time before 9-11 has contributed to the number of those now demanding Federal
handouts.
But there is one business that we need not fear will go into a slump: The
Washington lobbying industry. Last year, it spent $1.6 billion lobbying Congress.
This year, it will spend much more. The bigger the disaster, the greater the number
of vultures who descend on Washington. When I see this happening, it breaks my
heart, because liberty and America suffers, and it is all done in the name of justice,
equality and security.
Emotions are running high in our Nation's capital, and in politics emotions are
more powerful tools than reason and the rule of law. The use of force to serve special
interests and help anyone who claims to be in need unfortunately is an acceptable
practice. Obeying the restraints placed in the Constitution is seen as archaic and
insensitive to the people's needs. But far too often the claims of those responding to

human tragedies are nothing more than politics as usual. While one group supports
bailing out the corporations, another wants to prop up wages and jobs. One group
supports federalizing tens of thousands of airport jobs to increase union
membership, while another says we should subsidize corporate interests and keep the
jobs private.
Envy and power drive both sides- the special interests of big business and the
demands of the welfare/redistribution crowd.
There are many other reasons to be sad about all that is going on today. In spite of
the fact that our government has done such a poor job protecting us and has no
intention of changing the policy of meddling overseas (which has contributed to our
problems), the people are more dependent on and more satisfied with government
than they have been in decades- while demanding even more government control and
intrusion in their daily lives.
It is aggravating to listen to the daily rhetoric regarding liberty and the
Constitution while the same people participate in their destruction. It is aggravating
to see all the money spent and civil liberties abused while the pilot's right to carry
guns in self-defense is denied. It is even more aggravating to see our government rely
on foreign AWACS aircraft to provide security to U.S. territory. A $325 billion
military budget, and we cannot even patrol our own shores. This, of course, is just
another sign of how little we are concerned about U.S. sovereignty and how willing
we are to submit to international government.
It is certainly disappointing that our congressional leaders and administration have
not considered using letters of marque and reprisal as an additional tool to root out
those who participated in the 9-11 attacks. The difficulty in finding bin Laden and his
supporters make marque and reprisal quite an appropriate option in this effort.
We already hear of plans to install and guarantee the next government of
Afghanistan. Getting bin Laden and his gang is one thing, nation-building is quite
another. Some of our trouble in the Middle East started years ago when our CIA put
the Shah in charge of Iran.
It was 25 years before he was overthrown, and the hatred toward America
continues to this day. Those who suffer from our intervention have long memories.
Our support for the less-than-ethical government of Saudi Arabia, with our troops
occupying what most Muslims consider sacred land, is hardly the way to bring peace
to the Middle East. A policy driven by our fear of losing control over the oil fields in
the Middle East has not contributed to American Security. Too many powerful
special interests drive our policy in this region, and this does little to help us preserve
security for Americans here at home.
As we bomb Afghanistan, we continue to send foreign aid to feed the people
suffering from the war. I strongly doubt if our food will get them to love us or even
be our friends. There is no evidence that the starving receive the food. And too often
it is revealed that it ends up in the hands of the military forces we are fighting. While

we bomb Afghanistan and feed the victims, we lay plans to install the next
government and pay for rebuilding the country. Quite possibly, the new faction we
support will be no more trustworthy than the Taliban, to which we sent plenty of aid
and weapons in the 1980s. That intervention in Afghanistan did not do much to win
reliable friends in the region.
It just may be that Afghanistan would be best managed by several tribal factions,
without any strong centralized government and without any outside influence,
certainly not by the U.N. But then again, some claim that the proposed Western
financed pipeline through northern Afghanistan can only happen after a strong
centralized pro-Western government is put in place.
It is both annoying and sad that there is so little interest by anyone in Washington
in free market solutions to the world's economic problems. True private ownership of
property without regulation and abusive taxation is a thing of the past. Few
understand how the Federal Reserve monetary policy causes the booms and the busts
that, when severe, as now, only serve to enhance the prestige of the money managers-
while most politicians and Wall Streeters demand that the Fed inflate the currency at
an even more rapid rate. Today's conditions give license to the politicians to spend
our way out of recession, they hope.
One thing for sure, as a consequence of the recession and the 9-11 tragedy, is that
big spending and deficits are alive and well. Even though we are currently adding to
the national debt at the rate of $150 billion per year, most politicians still claim that
Social Security is sound and has not been touched. At least the majority of American
citizens are now wise enough to know better.
There is plenty of reason to feel heartbroken over current events. It is certainly not
a surprise or illogical for people working in Washington to overreact to the anthrax
scare. The feelings of despondency are understandable, whether due to the loss of
lives, loss of property, fear of the next attack, or concerned at our own frantic efforts
to enhance security will achieve little. But broken or sad hearts need not break our
spirits nor impede our reasoning.
I happen to believe that winning this battle against the current crop of terrorists is
quite achievable in a relatively short period of time. But winning the war over the
long term is a much different situation. This cannot be achieved without a better
understanding of the enemy and the geopolitics that drive this war. Even if relative
peace is achieved with a battle victory over Osama bin Laden and his followers, other
terrorists will appear from all corners of the world for an indefinite period of time if
we do not understand the issues.
Changing our current foreign policy with wise diplomacy is crucial if we are to
really win the war and restore the sense of tranquility to our land that now seems to
be so far in our distant past. Our widespread efforts at peacekeeping and
nation-building will only contribute to the resentment that drives the fanatics.
Devotion to internationalism and a one-world government only exacerbates regional
rivalries. Denying that our economic interests drive so much of what the West does

against the East impedes any efforts to diffuse the world crisis that already has a
number of Americans demanding nuclear bombs to be used to achieve victory. A
victory based on this type of aggressive policy would be a hollow victory indeed.
I would like to draw analogy between the drug war and the war against terrorism.
In the last 30 years, we have spent hundreds of billions of dollars on a failed war on
drugs. This war has been used as an excuse to attack our liberties and privacy. It has
been an excuse to undermine our financial privacy while promoting illegal searches
and seizures with many innocent people losing their lives and property. Seizure and
forfeiture have harmed a great number of innocent American citizens.
Another result of this unwise war has been the corruption of many law
enforcement officials. It is
well known that with the profit incentives so high, we are not even able to keep
drugs out of our armed prisons. Making our whole society a prison would not bring
success to this floundering war on drugs. Sinister motives of the profiteers and
gangsters, along with prevailing public ignorance, keeps this futile war going.
Illegal and artificially high priced drugs drive the underworld to produce, sell and
profit from this social depravity. Failure to recognize that drug addiction, like
alcoholism, is a disease rather than a crime, encourage the drug warriors in efforts
that have not and will not ever work. We learned the hard way about alcohol
prohibition and crime, but we have not yet seriously considered it in the ongoing
drug war.
Corruption associated with the drug dealers is endless. It has involved our police,
the military, border guards and the judicial system. It has affected government
policy and our own CIA. The artificially high profits from illegal drugs provide easy
access to funds for rogue groups involved in fighting civil wars throughout the world.
Ironically, opium sales by the Taliban and artificially high prices helped to finance
their war against us. In spite of the incongruity, we rewarded the Taliban this spring
with a huge cash payment for promises to eradicate some poppy fields. Sure!
For the first 140 years of our history, we had essentially no Federal war on drugs,
and far fewer problems with drug addiction and related crimes was a consequence.
In the past 30 years, even with the hundreds of millions of dollars spent on the drug
war, little good has come of it. We have vacillated from efforts to stop the drugs at
the source to severely punishing the users, yet nothing has improved.
This war has been behind most big government police powers of the last 30 years,
with continual undermining of our civil liberties and personal privacy. Those who
support the IRS's efforts to collect maximum revenues and root out the underground
economy, have welcomed this intrusion, even if the drug underworld grows in size
and influence.
The drug war encourages violence. Government violence against nonviolent users is
notorious and has led to the unnecessary prison overpopulation. Innocent taxpayers

are forced to pay for all this so-called justice. Our drug eradication project (using
spraying) around the world, from Colombia to Afghanistan, breeds resentment
because normal crops and good land can be severely damaged. Local populations
perceive that the efforts and the profiteering remain somehow beneficial to our own
agenda in these various countries.
Drug dealers and drug gangs are a consequence of our unwise approach to drug
usage. Many innocent people are killed in the crossfire by the mob justice that this
war generates. But just because the laws are unwise and have had unintended
consequences, no excuses can ever be made for the monster who would kill and maim
innocent people for illegal profits. But as the violent killers are removed from society,
reconsideration of our drug laws ought to occur.
A similar approach should be applied to our war on those who would terrorize and
kill our people for political reasons. If the drug laws, and the policies that incite
hatred against the United States, are not clearly understood and, therefore, never
changed, the number of drug criminals and terrorists will only multiply.
Although this unwise war on drugs generates criminal violence, the violence can
never be tolerated. Even if repeal of drug laws would decrease the motivation for
drug dealer violence, this can never be an excuse to condone the violence. In the short
term, those who kill must be punished, imprisoned, or killed. Long term though, a
better understanding of how drug laws have unintended consequences is required if
we want to significantly improve the situation and actually reduce the great harms
drugs are doing to our society.
The same is true in dealing with those who so passionately hate us that suicide
becomes a just and noble cause in their effort to kill and terrorize us. Without some
understanding of what has brought us to the brink of a worldwide conflict, and
reconsideration of our policies around the globe, we will be no more successful in
making our land secure and free than the drug war has been in removing drug
violence from our cities and towns.
Without an understanding of why terrorism is directed towards the United States,
we may well build a prison for ourselves with something called homeland security
while doing nothing to combat the root causes of terrorism. Let us hope we figure
this out soon.
We have promoted a foolish and very expensive domestic war on drugs for more
than 30 years. It has done no good whatsoever. I doubt our Republic can survive a
30-year period of trying to figure out how to win this guerilla war against terrorism.
Hopefully, we will all seek the answers in these trying times with an open mind and
understanding.

Roscoe G. Bartlett's Web site
Project Freedom Ron Paul's Web site
Pro-Liberty Legislation

Court Decisions
Court Decisions
"No higher duty, or more solemn responsibility, rest upon this Court than
that of translating into living law and maintaining this Constitutional shield
deliberately planned and inscribed for the benefit of every human being
subject to our Constitution-of whatever race, creed of persuasion."
Chambers v. Florida, 309 U.S. 227 (1938)
"The Constitution of the State is a higher authority than any act or law of
any officer or body assuming to act under it. And in the case of conflict, the
Constitution must govern, and the act or law in conflict with it must be held
to have no legal validity."
Johnson v. Duke, 180 Md. 434
"The Constitution is the voice of the people speaking in their sovereign
capacity, and it must be heeded: when the Constitution speaks with reference
to a certain matter, it must be given effect as the paramount law of the
land."
People v. Parks, 58 Cal. 624
"A judge has no more right to disregard the Constitution than a criminal has
to violate the law."
People ex rel. Sammons v. Snow, 72 A.L.R. 798
http://www.eddiekahn.com/court_decisions.htm (1 of 2) [1/13/2004 8:13:22 PM]

Court Decisions
"The Constitution is the Supreme law, written by the supreme power of the
state, the people themselves."
Weinberger v. Miller, 87 Ohio St. 12
http://www.eddiekahn.com/court_decisions.htm (2 of 2) [1/13/2004 8:13:22 PM]

CP515 Letter and Response
CP515 Letter & Response

The link below consists of 4 documents. The first is a CP515 letter. You will get this from the
Internal revenue Service if you do not file a tax return. The second is a written response to the
CP515. The third is Form 9358. The IRS wants this completed and sent back. The fourth is a
letter that everyone wants
Click here to see the documents for yourself.
http://www.eddiekahn.com/REF/CP515.htm [1/13/2004 8:13:23 PM]

CP 515 Letter and Response - Please be

patient - These are picture files and can
take a few minutes to load. Thanks!
http://www.eddiekahn.com/REF/CP515Docs.htm (1 of 5) [1/13/2004 8:13:24 PM]





Defending a Trust
Defending a Trust
Only a the trustee of a trust may defend the trust against attack from either individuals or
government. To do that successfully the trustee must know that they have certain rights of
Discovery prior to releasing any documents or giving any testimony.
Click here to see a Trustee's response to a subpoena demanding appearance in US Tax Court with
books and records. This response was sent to a US Attorney upon receipt of the subpoena . The
questions asked, the documents requested, and the guarantees demanded by the Trustee, were all
within his rights prior to giving testimony or surrendering trust documents.
Page two of this document is the reply the Trustee received from the US Attorney.
P.S. The key to making this approach work for you is being a BULLDOG when it comes to
STANDING UP FOR YOUR RIGHTS! When you make this demand, you want to be absolutely
steadfast in refusing to give information until YOUR demands have been met.
icon below.
http://www.eddiekahn.com/REF/defending_a_trust.htm [1/13/2004 8:13:24 PM]


The following transcripts are from actual due
process hearings
The names have been blacked out to protect the innocent
Collection due process hearing 5/11/2000 - This hearing has a Competent IRS agent with
over 30 years of experience who is now retired. (Adobe Acrobat format)
Collection Due Process Hearing 5/12/2000 - This hearing has an IRS agent who is not as
competent as the one above. (Adobe Acrobat format)
icon below.
http://www.eddiekahn.com/REF/transscriptsdueprocess.htm [1/13/2004 8:13:24 PM]


It is important for someone who is interested in renouncing their United States citizenship (14th
amendment) to read this Act. As you can see, it is applicable to American citizens. The
Expatriation Act states that you have a natural and inherent right to Expatriate. However, you
must be very specific as to which country you will repatriate. You do not want to be "stateless."
Black's Law 6th edition defines Repatriation as: "The return or restoration of a person or object to
his or its country of origin."
What a number of people are doing are Expatriating from their United States citizenship (14th
Amendment) and repatriating back to their American citizenship. In our opinion, you would not
want to Expatriate and not Repatriate.
Click HERE to read the Expatriation Act
icon below.
http://www.eddiekahn.com/REF/expatriation_act_of_1868.htm [1/13/2004 8:13:27 PM]

Expatriation Act
CHAP. CCXLIX - An Act concerning the Rights of July 27, 1868.
American Citizens in foreign States. Rights of
American
Citizens in
Whereas the right of expatriation is a natural and inherent right of all Foreign states
people, indispensable to the enjoyment of the rights of life, Preamble Preamble.
liberty, and the pursuit of happiness; and whereas in the recognition of

this principle, this government has freely received emigrants from all
nations, and invested them with the rights of citizenship; and whereas it
is claimed that such American citizens, with their descendents, are
subjects of foreign states, owing allegiance to the governments thereof,
and whereas it is necessary to the maintenance of public peace that this
claim of foreign allegiance should be promptly and finally disavowed;
Therefore,
Right of Be it enacted by the Senate and House of Representatives of the United

expatriation States of America in Congress assembled, That any declaration,
declared
instruction, opinion, order, or decision of any officers of this
government which denies, restricts, impairs, or questions the right of
expatriation, is hereby declared inconsistent with the fundamental
principles of this government.
Protection to Sec. 2. And be it further enacted, That all naturalized citizens of the
naturalized United States, while in foreign states, shall be entitled to, and shall
citizens in
foreign states. receive from this government, the same protection of persons and
property that is accorded to native-born citizens in like situations and
circum-stances.
Release of Sec. 3. And be it further enacted, That whenever it shall be made

citizens known to the President that any citizen of the United States has been
imprisoned unjustly deprived of his liberty by or under the authority of any foreign
by foreign
governments government, it shall be the duty of the President forthwith to demand of
to be that government the reasons for such imprisonment, and if it appears to
demanded. be wrongful and in violation of the rights of American citizenship, the
President shall forthwith demand the release of such citizen, and if the
release so demanded is unreasonably delayed or refused, it shall be the
duty of the President to use such means, not amounting to acts of war,
as he may think necessary and proper to obtain or effectuate such
Facts to be
Communicated
release, and all the facts and proceedings relative thereto shall as soon
to Congress. as practicable be communicated by the President to Congress.
Approved, July 27, 1868.

Fair Debt Collection Practices Act

(FDCPA) in Administrative or Civil
Actions (Fiscal Year 2001).
We had no idea that the IRS was subject to the FDCPA. It seems that the IRS Restructuring and
Reform Act of 1998 (RRA 98) § 3466 requires the IRS to comply with certain provisions of the
FDCPA and to be at least as considerate to taxpayers as private creditors are to their customers.
The potential FDCPA violations include:
● Contact with a taxpayer at an unusual location or time.
● Direct contact with a taxpayer without the consent of the taxpayer's representative.
● Contact with a taxpayer at his or her place of employment when prohibited.
● Conduct which is intended to harass or abuse a taxpayer.
● Use of obscene or profane language toward a taxpayer.
● Continuous telephone calls to a taxpayer with the intent to harass.
● Telephone calls to a taxpayer without meaningful disclosure of the employee's identity.
The bottom line: If an IRS Agent violates any of the above, they are subject to dismissal under the
RRA 98 once you've filed a complaint with the Treasury Inspector General for Tax Administration
(TIGTA). TIGTA Agents stated the more evidence (such as documents) you can give them to
support your complaint, the better the chance, under section 1203 RRA 98, you have of getting the
agent dismissed.
Click HERE to read the Treasury Inspector General for Tax Administration's report.
Click HERE to read the IRS Restructuring and Reform Act of 1998 § 3466
http://www.eddiekahn.com/REF/fdcpa.htm (1 of 2) [1/13/2004 8:13:28 PM]

icon below.
http://www.eddiekahn.com/REF/fdcpa.htm (2 of 2) [1/13/2004 8:13:28 PM]

Management Advisory Report: No Violations
of the Fair Debt Collection Practices Act
Resulted in Administrative or Civil Actions
(Fiscal Year 2001)
July 2001
Reference Number: 2001-10-081
This report has cleared the Treasury Inspector General for Tax Administration disclosure
review process and information determined to be restricted from public release has been
redacted from this document.
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220
INSPECTOR GENERAL
for TAX
ADMINISTRATION
July 24, 2001
MEMORANDUM FOR DEPUTY COMMISSIONER

CHIEF COUNSEL
FROM: Pamela J. Gardiner

Deputy Inspector General for Audit
SUBJECT: Final Management Advisory Report - No Violations of the Fair

Debt Collection Practices Act Resulted in Administrative or Civil
Actions (Fiscal Year 2001)
This report presents the results of our Fiscal Year 2001 Fair Debt Collection Practices
Act (FDCPA)1 review. In summary, we found no violations of the FDCPA reported by
Internal Revenue Service (IRS) management that resulted in an administrative action
against an employee. Additionally, there were no civil actions that resulted in the IRS
paying monetary settlements to taxpayers because of an FDCPA violation.
IRS management agreed with the observations in the draft report. The full text of their
comments is included as an appendix.
Copies of this report are also being sent to the IRS managers who are affected by the
report. Please contact me at (202) 622-6510 if you have any questions or
Maurice S. Moody, Assistant Inspector General for Audit (Headquarters Operations and
Exempt Organizations Programs), at (202) 622-8500.
1
15 U.S.C. §§ 1601 note, & 1692-1692o (1994 & Supp. IV 1998).
Management Advisory Report: No Violations of the Fair Debt Collection
Practices Act Resulted in Administrative or Civil Actions
(Fiscal Year 2001)
Table of Contents
Executive Summary.............................................................................................Page i
Objective and Scope............................................................................................Page 1
Background ...........................................................................................................Page 2
Results ...................................................................................................................Page 3
No Fair Debt Collection Practices Act Violations Resulted in
Administrative Action...............................................................................Page 4
No Civil Actions Coded as Fair Debt Collection Practices Act
Violations Were Closed During Our Audit Period ..............................Page 5
Conclusion.........................................................................................................…Page 6
Appendix I – Detailed Objective, Scope, and Methodology ..........................Page 7
Appendix II – Major Contributors to This Report.............................................Page 9
Appendix III – Report Distribution List...............................................................Page 10
Appendix IV – Management’s Response to the Draft Report.......................Page 11
(Fiscal Year 2001)
Executive Summary
The Fair Debt Collection Practices Act (FDCPA)1 includes provisions that restrict various
collection abuses and harassment in the private sector that did not apply to the United
States (U.S.) Government at the time the FDCPA was enacted. However, the Internal
Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA 98) 2 requires the
IRS to comply with certain provisions of the FDCPA and to be at least as considerate to
taxpayers as private creditors are required to be with their customers. In addition,
taxpayers who believe their FDCPA rights were violated can file a civil action against the
U.S. Government under the Civil Damages for Certain Unauthorized Collection Actions
statute. 3
Section 1102 (d)(1)(G) of the RRA 98 4 requires the Treasury Inspector General for Tax
Administration (TIGTA) to include in one of its semiannual reports to the Congress
information regarding any administrative or civil actions related to FDCPA violations.
The semiannual report must provide a summary of such taxpayer actions and include any
judgments or awards granted. Accordingly, the objective of this review was to obtain
information on IRS administrative and civil actions resulting from violations of the
FDCPA by IRS employees. The TIGTA reviewed cases coded as FDCPA violations on
IRS computer systems opened after July 22, 1998, and closed during the period
April 1 through December 31, 2000.
Results
Based on a review of information coded as potential FDCPA violations on the IRS’

computer systems, there were no violations that resulted in the IRS taking an
administrative action against an employee. In addition, the IRS did not have any closed
civil actions involving FDCPA violations. Accordingly, the IRS did not pay any money
to taxpayers for civil actions resulting from FDCPA violations.
1
15 U.S.C. §§ 1601 note, & 1692-1692o (1994 & Supp. IV 1998).
2
Pub. L. No. 105-206, 112 Stat. 685 (codified as amended in scattered sections of 2 U.S.C., 5 U.S.C.,
5 U.S.C. app., 16 U.S.C., 19 U.S.C., 22 U.S.C., 23 U.S.C., 26 U.S.C., 31 U.S.C., 38 U.S.C., and
49 U.S.C.).
3
26 U.S.C. § 7433 (1986).
4
Pub. L. No. 105-206, 112 Stat. 703 § 1102 (d)(1)(G).
Page i
(Fiscal Year 2001)
No Fair Debt Collection Practices Act Violations Resulted in

Administrative Action
To determine if any FDCPA violations resulted in an administrative action, the TIGTA
reviewed cases coded as FDCPA violations on the Automated Labor and Employee
Relations Tracking System. Review of all 28 cases coded as FDCPA during the audit
period did not identify any FDCPA violations that resulted in an administrative action
being taken against an IRS employee. These 28 cases were either miscoded as FDCPA
violations (19) or closed without administrative action (9).
No Civil Actions Coded as Fair Debt Collection Practices Act Violations

Were Closed During Our Audit Period
Civil actions filed by taxpayers against the IRS are input to the Counsel Automated
System Environment (CASE) for tracking. During the audit period, the CASE did not
contain any closed civil actions coded as FDCPA. As a result, the IRS did not pay any
money to taxpayers for civil actions resulting from FDCPA violations during the period
of this review.
Case information from the Department of Justice’s (DOJ) Tax Division was obtained to
better ensure civil actions involving FDCPA violations were captured on the CASE.
Because the DOJ does not track FDCPA violations separately, the TIGTA reviewed the
cases filed under Civil Damages for Certain Unauthorized Collection Actions, which
allows taxpayers to sue the IRS for violations of the Internal Revenue Code related to
collection actions. Seven cases were opened on or after July 22, 1998, and closed during
the period April 1 through December 31, 2000. None of the seven cases involved
FDCPA violations.
Management’s Response: IRS management agreed with the observations in the draft
report. Management’s complete response to the draft report is included as Appendix IV.
Page ii
(Fiscal Year 2001)
Objective and Scope
The objective of this review The objective of this review was to obtain information
was to obtain information on on Internal Revenue Service (IRS) administrative and
IRS administrative and civil civil actions resulting from violations of the Fair Debt
actions resulting from Collection Practices Act (FDCPA) 1 by IRS employees.
violations of the FDCPA. Fieldwork was performed in the Strategic Human
Resources, Agency-Wide Shared Services, and Chief
Counsel functions in the National Headquarters during
the period February to March 2001. This review was
performed in accordance with the President’s Council on
Integrity and Efficiency’s Quality Standards for
Inspections.
For this Fiscal Year (FY) 2001 review, closed cases
from the Automated Labor and Employee Relations
Tracking System (ALERTS) and the Counsel
Automated System Environment (CASE) were analyzed
to identify violations of the FDCPA. However, the
Treasury Inspector General for Tax Administration
(TIGTA) cannot ensure that cases recorded on the
ALERTS encompass all potential FDCPA violations.
As stated in a FY 2000 report on the FDCPA,2 data
captured on the ALERTS related to potential FDCPA
violations may not be complete and accurate. During
this FY 2001 review, the TIGTA did not determine the
accuracy or consistency of disciplinary actions taken
against employees for potential FDCPA violations.
Details of our objective, scope, and methodology are
presented in Appendix I. Major contributors to this
report are listed in Appendix II.
1
15 U.S.C. §§ 1601 note, & 1692-1692o (1994 & Supp. IV 1998).
2
The Identification and Reporting of Potential Fair Debt Collection
Practices Act Violations Can Be Improved (Reference Number
2000-10-109, dated August 2000).
Page 1
(Fiscal Year 2001)
Background
The TIGTA must provide the Section 1102 (d)(1)(G) of the IRS Restructuring and
Congress with information on Reform Act of 1998 (RRA 98) 3 requires the TIGTA to
administrative and civil include in one of its semiannual reports to the Congress
actions resulting from FDCPA information regarding any administrative or civil actions
violations. related to FDCPA violations. The semiannual report
must provide a summary of such taxpayer actions and
include any judgments or awards granted.
The IRS’ definition of administrative action includes
disciplinary actions ranging from admonishment
through removal. Lesser actions, such as oral or written
counseling, are not considered administrative actions.
The IRS’ definition of administrative actions was used
when determining the number of FDCPA violations to
be reported to the Congress.
The FDCPA includes provisions that restrict various
collection abuses and harassment in the private sector
that did not apply to the federal government at the time
the FDCPA was enacted. The RRA 98 4 requires the IRS
to comply with certain provisions of the FDCPA and to
be at least as considerate to taxpayers as private
creditors are required to be with their customers.
Specifically, the IRS may not communicate with
taxpayers in connection with the collection of any
unpaid tax:
• At unusual or inconvenient times.
• If the IRS knows that the taxpayer has obtained
representation from a person authorized to practice
before the IRS, and the IRS knows or can easily
obtain the representative’s name and address.
3
Pub. L. No. 105-206, 112 Stat. 703 § 1102 (d)(1)(G).
4
Pub. L. No. 105-206, 112 Stat. 685 (codified as amended in
scattered sections of 2 U.S.C., 5 U.S.C., 5 U.S.C. app., 16 U.S.C.,
19 U.S.C., 22 U.S.C., 23 U.S.C., 26 U.S.C., 31 U.S.C., 38 U.S.C.,
and 49 U.S.C.).
Page 2
(Fiscal Year 2001)
• At the taxpayer’s place of employment, if the IRS

knows or has reason to know that such
communication is prohibited.
Further, the IRS may not harass, oppress, or abuse any
person in connection with any tax collection activity or
engage in any activity that would naturally lead to
harassment, oppression, or abuse. Such conduct
specifically includes (but is not limited to) the use or
threat of violence or harm, use of obscene or profane
language, causing a telephone to ring continuously with
harassing intent, and the placement of telephone calls
without meaningful disclosure of the caller’s identity.
If taxpayers believe the IRS has violated their FDCPA
rights, they may file an administrative claim for
damages with the applicable IRS executive for the
location where the taxpayer resides or file for civil
damages in a federal district court.
Taxpayer complaints about IRS employees’ conduct can
be reported to several IRS functions for tracking on
management information systems. If a taxpayer files a
civil action or if IRS management determines that the
taxpayer’s FDCPA rights were potentially violated, the
complaint could be referred and tracked on one or both
of the following IRS systems:
• Office of Workforce Relations’ ALERTS, which
generally tracks employee behavior that may warrant
IRS management administrative actions.
• Chief Counsel’s CASE, which is an inventory
control system that tracks items such as taxpayer
civil actions or bankruptcies.
The IRS implemented FDCPA codes on the ALERTS in
March 1999 and on the CASE in June 1999.
Results
Based upon a review of information coded as potential

FDCPA violations on the IRS’ computer systems, there
Page 3
(Fiscal Year 2001)
were no violations that resulted in the IRS taking an

administrative action against an employee for the period
April 1 through December 31, 2000. In addition, the
IRS did not have any closed civil actions involving
FDCPA violations for this period. Accordingly, the IRS
did not pay any money to taxpayers for civil actions
resulting from FDCPA violations.
No Fair Debt Collection Practices Act Violations

Resulted in Administrative Action
IRS managers investigate a taxpayer complaint against

an employee and coordinate with the local Labor
Relations office to determine the appropriate level of
disciplinary action. If the misconduct requires an
administrative action, managers refer the complaint to
the local Labor Relations office, which tracks it on the
ALERTS. The following categories were established on
the ALERTS to track potential FDCPA violations:
• Contact with a taxpayer at an unusual
location or time.
• Direct contact with a taxpayer without the
consent of the taxpayer’s representative.
• Contact with a taxpayer at his or her place of
employment when prohibited.
• Conduct which is intended to harass or abuse
a taxpayer.
• Use of obscene or profane language toward a
taxpayer.
• Continuous telephone calls to a taxpayer with
the intent to harass.
• Telephone calls to a taxpayer without
meaningful disclosure of the employee’s
identity.
Page 4
(Fiscal Year 2001)
No FDCPA violations resulted To determine if any FDCPA violations resulted in an

in administrative actions. administrative action, the TIGTA reviewed cases from
the ALERTS coded as potential FDCPA violations that
were opened after July 22, 1998, and closed during the
period April 1 through December 31, 2000. Review of
all 28 cases coded as FDCPA violations did not identify
any FDCPA violations that resulted in an administrative
action being taken against an employee.
Nineteen of the 28 cases reviewed from the ALERTS
were incorrectly coded as FDCPA violations. The other
nine cases were closed without administrative action.
The TIGTA previously identified miscoding of FDCPA
cases on the ALERTS and made a recommendation to
address this issue in a FY 2000 report on the FDCPA.
IRS management agreed to take corrective actions to
better ensure FDCPA violations are properly identified
and reported.
No Civil Actions Coded as Fair Debt Collection

Practices Act Violations Were Closed During
Our Audit Period
Civil actions filed by taxpayers against the IRS are input

to the CASE database by District Counsel, who are
responsible for coding the case with the appropriate
category code.
No civil actions coded as For cases opened after July 22, 1998, and closed during
FDCPA violations were closed the period April 1 through December 31, 2000, the
during the audit period. CASE did not include any closed civil actions coded as
FDCPA. Accordingly, the IRS did not pay any money
to taxpayers for civil actions resulting from FDCPA
violations during the period of this review.
Case information from the Department of Justice’s
(DOJ) Tax Division was obtained to better ensure civil
actions involving FDCPA violations were captured on
the CASE. Because the DOJ does not track FDCPA
violations separately, the TIGTA reviewed the cases
filed under Civil Damages for Certain Unauthorized
Page 5
(Fiscal Year 2001)
Collection Actions, which allows taxpayers to sue the

IRS for violations of the Internal Revenue Code related
to collection actions. Seven cases were initiated on or
after July 22, 1998, and closed during the period
April 1 through December 31, 2000. None of the seven
cases involved FDCPA violations.
Management’s Response: IRS management in the
Office of the Chief Counsel and the Workforce
Relations Division in Strategic Human Resources
considered the report to be accurate and complete and
were in agreement with its findings.
Conclusion
Based upon a review of information coded as potential

FDCPA violations on the IRS’computer systems, there
were no violations that resulted in the IRS taking an
administrative action against an employee for the period
April 1 through December 31, 2000. In addition, the
IRS did not have any closed civil actions involving
FDCPA violations for this period. Accordingly, the IRS
did not pay any money to taxpayers for civil actions
resulting from FDCPA violations.
Page 6
(Fiscal Year 2001)
Appendix I
Detailed Objective, Scope, and Methodology
The objective of this review was to obtain information on Internal Revenue Service (IRS)
administrative and civil actions resulting from violations of the Fair Debt Collection
Practices Act (FDCPA) 1 by IRS employees. Specifically, we:
I. Determined the number of FDCPA violations resulting in administrative actions.

A. Obtained a computer extract from the Automated Labor and Employee
Relations Tracking System (ALERTS) of 28 cases that were opened after
July 22, 1998, and closed during the period April 1 through
December 31, 2000, 2 coded as FDCPA violations.
1. Analyzed available ALERTS information to ensure the cases were
accurately coded as FDCPA violations.
2. Obtained additional case file information from the local Labor
Relations offices to determine if cases were coded accurately as
FDCPA violations.
B. Determined if any cases involving FDCPA violations resulted in an
administrative action.
1. Reviewed the final disposition code for the cases involving
FDCPA violations.
2. Determined if any cases resulted in a minimum disciplinary action
of admonishment.
3. Reviewed case file information from the local Labor Relations
offices, if necessary, to determine if the violations occurred after
July 22, 1998.
1
15 U.S.C. §§ 1601 note, & 1692-1692o (1994 & Supp. IV 1998).
2
The IRS Restructuring and Reform Act of 1998 was signed into law on July 22, 1998. The application of
certain provisions of the FDCPA to the IRS is effective on this date. The Treasury Inspector General for
Tax Administration’s (TIGTA)audit report entitled Management Advisory Report: Violations of the Fair
Debt Collection Practices Act Resulting in Administrative or Civil Actions (Fiscal Year 2000) (Reference
Number 2000-10-104, dated August 2000) included a review of ALERTS cases closed during the period
March 19, 1999, through March 31, 2000.
Page 7
(Fiscal Year 2001)
II. Determined if there were any IRS civil actions (judgments and awards granted)
resulting from violations of the FDCPA.
A. Requested a computer extract from the Counsel Automated System
Environment (CASE) for Subcategory 511 (established to track FDCPA
violations) cases opened after July 22, 1998, and closed during the period
April 1 through December 31, 2000.3 (Note: No cases met our criteria for
review.)
B. Requested copies from the Department of Justice’s Tax Division of any
complaints opened on or after July 22, 1998, involving any Internal
Revenue Code § 7433 civil action and closed during the period
April 1 through December 31, 2000.
3
The TIGTA’s audit report entitledManagement Advisory Report: Violations of the Fair Debt Collection
Practices Act Resulting in Administrative or Civil Actions (Fiscal Year 2000) (Reference Number
2000-10-104, dated August 2000) included a review of Chief Counsel cases closed during the period
June 11, 1999, through March 31, 2000.
Page 8
(Fiscal Year 2001)
Appendix II
Major Contributors to This Report
Maurice S. Moody, Assistant Inspector General for Audit (Headquarters Operations and
Exempt Organizations Programs)
Nancy A. Nakamura, Director
Jeffrey M. Jones, Audit Manager
Mark Judson, Senior Auditor
Margaret A. Anketell, Auditor
Page 9
(Fiscal Year 2001)
Appendix III
Report Distribution List
Commissioner N:C
Chief, Agency-Wide Shared Services A
Associate Chief Counsel (Procedure and Administration) CC:P&A
Director, Office of Workforce Relations N:ADC:H:R
Director, Personnel Services A:PS
Director, Strategic Human Resources N:ADC:H
Chief Counsel CC
Director, Legislative Affairs CL:LA
Director, Office of Program Evaluation and Risk Analysis N:ADC:R:O
National Taxpayer Advocate TA
Office of Management Controls N:CFO:F:M
Audit Liaisons:
Chief, Agency-Wide Shared Services A
Chief Counsel CC
Associate Chief Counsel (Procedure and Administration) CC:P&A
Director, Office of Workforce Relations N:ADC:H:R
Director, Strategic Human Resources N:ADC:H
Page 10
(Fiscal Year 2001)
Appendix IV
Management’s Response to the Draft Report
Page 11
IRS Restructuring and Reform Act of 1998 (RRA98)
IRS Restructuring and Reform Act of 1998

3466 - Application of Certain Fair Debt Collection
Procedures
[ Click for Text Only Version ]

Section 3466
A. Provision(s) covered: RRA § 3466. Application of Certain Fair Debt Collection

Procedures. Adds new I.R.C. § 6304.
B. Background: This provision addresses concerns regarding abusive or harassing
contact with taxpayers.
C. Change(s): This provision incorporates into new I.R.C. § 6304 certain restrictions of
the Fair Debt Collection Practices Act (the "FDCPA") relating to communication with
the taxpayer and to any actions the consequence of which would harass or abuse the
taxpayer.
D. Impact: This provision does not significantly impact current business practices. The
FDCPA requirements are currently substantially codified in off-Code provisions and are
in the IRM.
E. Necessary Actions
1. Revenue Officers and Customer Service should be trained with regard to
limitations on communication imposed by this provision. The IRM should be
revised to reflect new requirements.
2. The Service CAN assume that, in absence of knowledge of circumstances to the
contrary, a taxpayer may be contacted between the hours of 8 a.m. and 9 p.m.,
local time at the taxpayer's location.
3. The Service CANNOT, without prior consent of the taxpayer or the express
permission of a court, communicate with a taxpayer in connection with the
collection of any unpaid tax (1) at an unusual place or time or a time or place
known or which should be known to be inconvenient to the taxpayer; (2) if the
Service knows that the taxpayer is represented by any person authorized to practice
http://www.irs.gov/prod/tax_regs/rra-3466.html (1 of 2) [9/12/2001 3:12:13 PM]

IRS Restructuring and Reform Act of 1998 (RRA98)
before the Service with respect to such unpaid tax or can readily ascertain such
person's name and address, unless such person fails to respond within a reasonable
period of time to a communication from the Service or unless such person consents
to direct communication with the taxpayer; or (3) at the taxpayer's place of
employment if the Service knows or has reason to know that the taxpayer's
employer prohibits the taxpayer from receiving such communication. The Service
CANNOT engage in conduct the natural consequence of which is to harass,
oppress, or abuse any person in connection with the collection of any unpaid tax.
Such conduct specifically includes (but is not limited to ) the use or threat of
violence or harm, the use of obscene language, causing a telephone to ring
continuously with harassing intent, and the placement of telephone calls without
meaningful disclosure of the caller's identity.
F. Other Special Comments: It should also be emphasized that this provision, as
distinguished from the FDCPA, is not limited in application to individual taxpayers, but
applies to all taxpayers with respect to any unpaid tax-- i.e., including corporate or
partnership tax.
Tax Stats | Tax Info For You | Tax Info For Business | Electronic Services
Taxpayer Help & Ed | Tax Regs In English | IRS Newsstand | Forms & Pubs
What's Hot | Meet The Commissioner | Comments & Help | Site Tree
Tuesday, 14-Jul-1998 13:22:00 EDT
http://www.irs.gov/prod/tax_regs/rra-3466.html (2 of 2) [9/12/2001 3:12:13 PM]

Florida Statute 316.183 Unlawful Speed
Florida Statute 316.183 - Unlawful Speed

It pays to read the LAW
An Attorney that we know very well was recently given a speeding ticket,
here in Florida. He read the specific Statute they cited him for. He
appeared in court, put the ticketing officer on the stand, and asked the
Officer to read the specific Statute into the record. Once the Officer was
finished reading the specific Statue the Attorney asked if he was driving a
school bus when ticketed. The Officer said no. The Attorney asked if he was
driving through a construction zone. The Officer again said no. Then the
Attorney asked the Officer if the specific Statute applied to him. The Officer
said no. The case was dismissed.
Read the specific Statute and see if you can understand why the
case was dismissed.
icon below.
http://www.eddiekahn.com/REF/unlawful_Speed_316.htm [1/13/2004 8:13:29 PM]

Section 316.183, Florida Statutes 2001
View Statutes Search Statutes Constitution Laws of Florida Order
2001 Go
Select Year: >
The 2001 Florida Statutes

Title XXIII Chapter 316 View Entire Chapter
Motor Vehicles State Uniform Traffic Control
316.183 Unlawful speed.--
(1) No person shall drive a vehicle on a highway at a speed greater than is reasonable and
prudent under the conditions and having regard to the actual and potential hazards then existing.
In every event, speed shall be controlled as may be necessary to avoid colliding with any person,
vehicle, or other conveyance or object on or entering the highway in compliance with legal
requirements and the duty of all persons to use due care.
(2) On all streets or highways, the maximum speed limits for all vehicles must be 30 miles per
hour in business or residence districts, and 55 miles per hour at any time at all other locations.
However, with respect to a residence district, a county or municipality may set a maximum speed
limit of 20 or 25 miles per hour on local streets and highways after an investigation determines
that such a limit is reasonable. It is not necessary to conduct a separate investigation for each
residence district. The minimum speed limit on all highways that comprise a part of the National
System of Interstate and Defense Highways and have not fewer than four lanes is 40 miles per
hour.
(3) No school bus shall exceed the posted speed limits, not to exceed 55 miles per hour at any
time.
(4) The driver of every vehicle shall, consistent with the requirements of subsection (1), drive at
an appropriately reduced speed when:
(a) Approaching and crossing an intersection or railway grade crossing;
(b) Approaching and going around a curve;
(c) Approaching a hill crest;
(d) Traveling upon any narrow or winding roadway; and
(e) Any special hazard exists with respect to pedestrians or other traffic or by reason of weather
or highway conditions.
(5) No person shall drive a motor vehicle at such a slow speed as to impede or block the normal
and reasonable movement of traffic, except when reduced speed is necessary for safe operation or
in compliance with law.
(6) No driver of a vehicle shall exceed the posted maximum speed limit in a work zone area.
(7) A violation of this section is a noncriminal traffic infraction, punishable as a moving violation
as provided in chapter 318.
History.--s. 1, ch. 71-135; s. 1, ch. 76-159; s. 3, ch. 76-218; s. 3, ch. 76-286; s. 1, ch. 77-174; s. 6, ch. 87-161; s. 2, ch. 88-47;
http://www.leg.state.fl.us/Statutes/index.cfm?A.../SEC183.HTM&Title=->2001->Ch0316->Section%20183 (1 of 2) [10/24/2001 12:05:04 PM]

Importance Of Court Decisions

The IRS' own manuals (see bottom of document) state they are bound by
Supreme Court decisions. It also states that Tax Court, District Court,
Claims Court decisions only apply to that person. The reason this is
important to know is because the IRS routinely tries to use Tax Court and
other lower court decisions as precedents for there actions when in fact there
manual does not authorize this.
icon below.
http://www.eddiekahn.com/REF/importance_of_court_decisions.htm [1/13/2004 8:13:30 PM]

Hndbk. 4.2 Chap. 7 Issue Resolution
Lewis, TC, Dec. 20,733, 23 TC 538

West, TC, Dec. 19,435, 19 TC 808
Tomlinson, TC, Dec. 18,513(M), 10 TCM 828
E. TC --Dec. 17,553(M); 9 TCM 210
3. Explanations of the above citations are as follows:
A. Case name (Batman, Ray L. ) and paragraph references to CCH Federal
Standard Tax Reporter.
B. Batman was appealed to the Supreme Court; however, certiorari was denied.
C. Fifth Circuit Court of Appeals heard Batman and affirmed the Tax Court
Decision.
D. These cases deal with the same legal principle or fact pattern and cite
Batman .
E. Tax Court heard Batman and case was appealed to Fifth Circuit Court of
Appeals.
4. Example 2: Rulings Finding List
A. Rev. Proc. 75-25, 1975-1 CB 720 ANNOTATED AT ...96 FED 8471.90;
29,663.90 1975 CCH 6595
B. Amplified by: Rev. Proc. 78-25
C. Cited in: Jones, Dec. 49,862(M), 67 TCM 2997, TC Memo. 1994-230
Notice 91-4 T.D. 8408 Haynsworth, TC, Dec. 34,581, 68 TC 703 Rev. Rul.
76-247
D. Obsoleted by: Rev. Proc. 92-29
E. Superseding: Mim. 4027
F. Example 2 is self-explanatory.
[4.2] 7.2.9.8 (05-14-1999)
1. Decisions made at various levels of the court system are considered to be
interpretations of tax laws and may be used by either examiners or taxpayers to
support a position.
2. Certain court cases lend more weight to a position than others. A case decided by
the U.S. Supreme Court becomes the law of the land and takes precedence over
decisions of lower courts. The Internal Revenue Service must follow Supreme
Court decisions. For examiners, Supreme Court decisions have the same weight as
the Code.
3. Decisions made by lower courts, such as Tax Court, District Courts, or Claims
Court, are binding on the Service only for the particular taxpayer and the years
litigated. Adverse decisions of lower courts do not require the Service to alter its
position for other taxpayers.
[4.2] 7.2.9.8.1 (05-14-1999)
Action on Decision
http://www.irs.gov/bus_info/tax_pro/irm-part/part04/27642a.html (22 of 33) [10/26/2001 9:48:34 AM]

Income Tax is 100% Voluntary
Income Tax is 100% Voluntary...

According to IRS Chief!!!
Hearings before a Subcommittee
In 1953 Dwight E. Avis was the Head of Alcohol Tobacco Tax Division and Bureau of Internal
Revenue, which were 1 department. His department was being investigated by a Subcommittee of
the Committee on Ways and Means during February and March of 1953.
Mr. Avis states the Income Tax is 100% voluntary! As far as our research can tell nothing has
changed from then to now. Click here to read it for yourself!
icon below.
http://www.eddiekahn.com/REF/voluntary.htm [1/13/2004 8:13:31 PM]

IRS Restructuring and Reform Act of

1998
A bill to eliminate abuses of IRS agents, and hold them accountable for their actions. This
document is 184 pages. Please be patient.
Click here to see the document for yourself.
icon below.
http://www.eddiekahn.com/REF/IRSReform.htm [1/13/2004 8:13:32 PM]

PUBLIC LAW 105–206—JULY 22, 1998 112 STAT. 685
Public Law 105–206

105th Congress
An Act
To amend the Internal Revenue Code of 1986 to restructure and reform the Internal July 22, 1998
Revenue Service, and for other purposes. [H.R. 2676]
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, Internal Revenue
Service
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; WAIVER OF Restructuring
ESTIMATED TAX PENALTIES; TABLE OF CONTENTS. and Reform Act
of 1998.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Internal 26 USC 1 note.
Revenue Service Restructuring and Reform Act of 1998’’.
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section
or other provision of the Internal Revenue Code of 1986.
(c) WAIVER OF ESTIMATED TAX PENALTIES.—No addition to tax 26 USC 6654
shall be made under section 6654 or 6655 of the Internal Revenue note.
Code of 1986 with respect to any underpayment of an installment
required to be paid on or before the 30th day after the date of
the enactment of this Act to the extent such underpayment was
created or increased by any provision of this Act.
(d) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; waiver of estimated tax penalties;
table of contents.
TITLE I—REORGANIZATION OF STRUCTURE AND MANAGEMENT OF THE
INTERNAL REVENUE SERVICE
Subtitle A—Reorganization of the Internal Revenue Service
Sec. 1001. Reorganization of the Internal Revenue Service.
Sec. 1002. Internal Revenue Service mission to focus on taxpayers’ needs.
Subtitle B—Executive Branch Governance and Senior Management
Sec. 1101. Internal Revenue Service Oversight Board.
Sec. 1102. Commissioner of Internal Revenue; other officials.
Sec. 1103. Treasury Inspector General for Tax Administration.
Sec. 1104. Other personnel.
Sec. 1105. Prohibition on executive branch influence over taxpayer audits and other
investigations.
Subtitle C—Personnel Flexibilities
Sec. 1201. Improvements in personnel flexibilities.
Sec. 1202. Voluntary separation incentive payments.
Sec. 1203. Termination of employment for misconduct.
Sec. 1204. Basis for evaluation of Internal Revenue Service employees.
Sec. 1205. Employee training program.
TITLE II—ELECTRONIC FILING
Sec. 2001. Electronic filing of tax and information returns.
112 STAT. 686 PUBLIC LAW 105–206—JULY 22, 1998
Sec. 2002. Due date for certain information returns.
Sec. 2003. Paperless electronic filing.
Sec. 2004. Return-free tax system.
Sec. 2005. Access to account information.
TITLE III—TAXPAYER PROTECTION AND RIGHTS
Sec. 3000. Short title.
Subtitle A—Burden of Proof
Sec. 3001. Burden of proof.
Subtitle B—Proceedings by Taxpayers
Sec. 3101.
Expansion of authority to award costs and certain fees.
Sec. 3102.
Civil damages for collection actions.
Sec. 3103.
Increase in size of cases permitted on small case calendar.
Sec. 3104.
Actions for refund with respect to certain estates which have elected the
installment method of payment.
Sec. 3105. Administrative appeal of adverse Internal Revenue Service determination
of tax-exempt status of bond issue.
Sec. 3106. Civil action for release of erroneous lien.
Subtitle C—Relief for Innocent Spouses and for Taxpayers Unable To Manage Their
Financial Affairs Due to Disabilities
Sec. 3201. Relief from joint and several liability on joint return.
Sec. 3202. Suspension of statute of limitations on filing refund claims during
periods of disability.
Subtitle D—Provisions Relating to Interest and Penalties
Sec. 3301. Elimination of interest rate differential on overlapping periods of interest
on tax overpayments and underpayments.
Sec. 3302. Increase in overpayment rate payable to taxpayers other than corpora-
tions.
Sec. 3303. Mitigation of penalty on individual’s failure to pay for months during
period of installment agreement.
Sec. 3304. Mitigation of failure to deposit penalty.
Sec. 3305. Suspension of interest and certain penalties where Secretary fails to
contact individual taxpayer.
Sec. 3306. Procedural requirements for imposition of penalties and additions to tax.
Sec. 3307. Personal delivery of notice of penalty under section 6672.
Sec. 3308. Notice of interest charges.
Sec. 3309. Abatement of interest on underpayments by taxpayers in Presidentially
declared disaster areas.
Subtitle E—Protections for Taxpayers Subject to Audit or Collection Activities
PART I—DUE PROCESS
Sec. 3401. Due process in Internal Revenue Service collection actions.
PART II—EXAMINATION ACTIVITIES
Sec. 3411.
Confidentiality privileges relating to taxpayer communications.
Sec. 3412.
Limitation on financial status audit techniques.
Sec. 3413.
Software trade secrets protection.
Sec. 3414.
Threat of audit prohibited to coerce tip reporting alternative commitment
agreements.
Sec. 3415. Taxpayers allowed motion to quash all third-party summonses.
Sec. 3416. Service of summonses to third-party recordkeepers permitted by mail.
Sec. 3417. Notice of Internal Revenue Service contact of third parties.
PART III—COLLECTION ACTIVITIES
SUBPART A—APPROVAL PROCESS
Sec. 3421. Approval process for liens, levies, and seizures.
SUBPART B—LIENS AND LEVIES
Sec. 3431. Modifications to certain levy exemption amounts.
Sec. 3432. Release of levy upon agreement that amount is uncollectible.
Sec. 3433. Levy prohibited during pendency of refund proceedings.
Sec. 3434. Approval required for jeopardy and termination assessments and
jeopardy levies.
Sec. 3435. Increase in amount of certain property on which lien not valid.
Sec. 3436. Waiver of early withdrawal tax for Internal Revenue Service levies on
employer-sponsored retirement plans or IRAs.
SUBPART C—SEIZURES
Sec. 3441. Prohibition of sales of seized property at less than minimum bid.
Sec. 3442. Accounting of sales of seized property.
Sec. 3443. Uniform asset disposal mechanism.
Sec. 3444. Codification of Internal Revenue Service administrative procedures for
seizure of taxpayer’s property.
Sec. 3445. Procedures for seizure of residences and businesses.
PART IV—PROVISIONS RELATING TO EXAMINATION AND COLLECTION ACTIVITIES
Sec. 3461. Procedures relating to extensions of statute of limitations by agreement.
Sec. 3462. Offers-in-compromise.
Sec. 3463. Notice of deficiency to specify deadlines for filing Tax Court petition.
Sec. 3464. Refund or credit of overpayments before final determination.
Sec. 3465. Internal Revenue Service procedures relating to appeals of examinations
and collections.
Sec. 3466. Application of certain fair debt collection procedures.
Sec. 3467. Guaranteed availability of installment agreements.
Sec. 3468. Prohibition on requests to taxpayers to give up rights to bring actions.
Subtitle F—Disclosures to Taxpayers
Sec. 3501. Explanation of joint and several liability.
Sec. 3502. Explanation of taxpayers’ rights in interviews with the Internal Revenue
Service.
Sec. 3503. Disclosure of criteria for examination selection.
Sec. 3504. Explanations of appeals and collection process.
Sec. 3505. Explanation of reason for refund disallowance.
Sec. 3506. Statements regarding installment agreements.
Sec. 3507. Notification of change in tax matters partner.
Sec. 3508. Disclosure to taxpayers.
Sec. 3509. Disclosure of Chief Counsel advice.
Subtitle G—Low-Income Taxpayer Clinics
Sec. 3601. Low-income taxpayer clinics.
Subtitle H—Other Matters
Sec. 3701.
Cataloging complaints.
Sec. 3702.
Archive of records of Internal Revenue Service.
Sec. 3703.
Payment of taxes.
Sec. 3704.
Clarification of authority of Secretary relating to the making of elections.
Sec. 3705.
Internal Revenue Service employee contacts.
Sec. 3706.
Use of pseudonyms by Internal Revenue Service employees.
Sec. 3707.
Illegal tax protester designation.
Sec. 3708.
Provision of confidential information to Congress by whistleblowers.
Sec. 3709.
Listing of local Internal Revenue Service telephone numbers and address-
es.
Sec. 3710. Identification of return preparers.
Sec. 3711. Offset of past-due, legally enforceable State income tax obligations
against overpayments.
Sec. 3712. Reporting requirements in connection with education tax credit.
Subtitle I—Studies
Sec. 3801. Administration of penalties and interest.
Sec. 3802. Confidentiality of tax return information.
Sec. 3803. Study of noncompliance with internal revenue laws by taxpayers.
Sec. 3804. Study of payments made for detection of underpayments and fraud.
TITLE IV—CONGRESSIONAL ACCOUNTABILITY FOR THE INTERNAL
REVENUE SERVICE
Subtitle A—Oversight
Sec. 4001. Expansion of duties of the Joint Committee on Taxation.
Sec. 4002. Coordinated oversight reports.
Subtitle B—Century Date Change
Sec. 4011. Century date change.
Subtitle C—Tax Law Complexity
Sec. 4021. Role of the Internal Revenue Service.
Sec. 4022. Tax law complexity analysis.
TITLE V—ADDITIONAL PROVISIONS
Sec. 5001. Lower capital gains rates to apply to property held more than 1 year.
Sec. 5002. Clarification of exclusion of meals for certain employees.
Sec. 5003. Clarification of designation of normal trade relations.
TITLE VI—TECHNICAL CORRECTIONS
Sec. 6001. Short title; coordination with other titles.
Sec. 6002. Definitions.
Sec. 6003. Amendments related to title I of 1997 Act.
Sec. 6004. Amendments related to title II of 1997 Act.
Sec. 6005. Amendments related to title III of 1997 Act.
Sec. 6006. Amendment related to title IV of 1997 Act.
Sec. 6007. Amendments related to title V of 1997 Act.
Sec. 6008. Amendments related to title VII of 1997 Act.
Sec. 6009. Amendments related to title IX of 1997 Act.
Sec. 6010. Amendments related to title X of 1997 Act.
Sec. 6011. Amendments related to title XI of 1997 Act.
Sec. 6012. Amendments related to title XII of 1997 Act.
Sec. 6013. Amendments related to title XIII of 1997 Act.
Sec. 6014. Amendments related to title XIV of 1997 Act.
Sec. 6015. Amendments related to title XV of 1997 Act.
Sec. 6016. Amendments related to title XVI of 1997 Act.
Sec. 6017. Amendment related to Transportation Equity Act for the 21st Century.
Sec. 6018. Amendments related to Small Business Job Protection Act of 1996.
Sec. 6019. Amendments related to Taxpayer Bill of Rights 2.
Sec. 6020. Amendment related to Omnibus Budget Reconciliation Act of 1993.
Sec. 6021. Amendment related to Revenue Reconciliation Act of 1990.
Sec. 6022. Amendment related to Tax Reform Act of 1986.
Sec. 6023. Miscellaneous clerical and deadwood changes.
Sec. 6024. Effective date.
TITLE VII—REVENUE PROVISIONS
Sec. 7001. Clarification of deduction for deferred compensation.
Sec. 7002. Termination of exception for certain real estate investment trusts from
the treatment of stapled entities.
Sec. 7003. Certain customer receivables ineligible for mark to market treatment.
Sec. 7004. Modification of AGI limit for conversions to Roth IRAs.
TITLE VIII—IDENTIFICATION OF LIMITED TAX BENEFITS SUBJECT TO
LINE ITEM VETO
Sec. 8001. Identification of limited tax benefits subject to line item veto.
TITLE IX—TECHNICAL CORRECTIONS TO TRANSPORTATION EQUITY ACT
FOR THE 21ST CENTURY
Sec. 9001. Short title.
Sec. 9002. Authorization and program subtitle.
Sec. 9003. Restorations to general provisions subtitle.
Sec. 9004. Restorations to program streamlining and flexibility subtitle.
Sec. 9005. Restorations to safety subtitle.
Sec. 9006. Elimination of duplicate provisions.
Sec. 9007. Highway finance.
Sec. 9008. High priority projects technical corrections.
Sec. 9009. Federal Transit Administration programs.
Sec. 9010. Motor carrier safety technical correction.
Sec. 9011. Restorations to research title.
Sec. 9012. Automobile safety and information.
Sec. 9013. Technical corrections regarding subtitle A of title VIII.
Sec. 9014. Corrections to veterans subtitle.
Sec. 9015. Technical corrections regarding title IX.
Sec. 9016. Effective date.
TITLE I—REORGANIZATION OF STRUC-

TURE AND MANAGEMENT OF THE IN-
TERNAL REVENUE SERVICE
Subtitle A—Reorganization of the Internal
Revenue Service
SEC. 1001. REORGANIZATION OF THE INTERNAL REVENUE SERVICE. 26 USC 7801
note.
(a) IN GENERAL.—The Commissioner of Internal Revenue shall
develop and implement a plan to reorganize the Internal Revenue
Service. The plan shall—
(1) supersede any organization or reorganization of the
Internal Revenue Service based on any statute or reorganiza-
tion plan applicable on the effective date of this section;
(2) eliminate or substantially modify the existing organiza-
tion of the Internal Revenue Service which is based on a
national, regional, and district structure;
(3) establish organizational units serving particular groups
of taxpayers with similar needs; and
(4) ensure an independent appeals function within the
Internal Revenue Service, including the prohibition in the plan
of ex parte communications between appeals officers and other
Internal Revenue Service employees to the extent that such
communications appear to compromise the independence of the
appeals officers.
(b) SAVINGS PROVISIONS.—
(1) PRESERVATION OF SPECIFIC TAX RIGHTS AND REMEDIES.—
Nothing in the plan developed and implemented under sub-
section (a) shall be considered to impair any right or remedy,
including trial by jury, to recover any internal revenue tax
alleged to have been erroneously or illegally assessed or col-
lected, or any penalty claimed to have been collected without
authority, or any sum alleged to have been excessive or in
any manner wrongfully collected under the internal revenue
laws. For the purpose of any action to recover any such tax,
penalty, or sum, all statutes, rules, and regulations referring
to the collector of internal revenue, the principal officer for
the internal revenue district, or the Secretary, shall be deemed
to refer to the officer whose act or acts referred to in the
preceding sentence gave rise to such action. The venue of any
such action shall be the same as under existing law.
(2) CONTINUING EFFECT OF LEGAL DOCUMENTS.—All orders,
determinations, rules, regulations, permits, agreements, grants,
contracts, certificates, licenses, registrations, privileges, and
other administrative actions—
(A) which have been issued, made, granted, or allowed
to become effective by the President, any Federal agency
or official thereof, or by a court of competent jurisdiction,
in the performance of any function transferred or affected
by the reorganization of the Internal Revenue Service or
any other administrative unit of the Department of the
Treasury under this section; and
(B) which are in effect at the time this section takes
effect, or were final before the effective date of this section
and are to become effective on or after the effective date

of this section,
shall continue in effect according to their terms until modified,
terminated, superseded, set aside, or revoked in accordance
with law by the President, the Secretary of the Treasury, the
Commissioner of Internal Revenue, or other authorized official,
a court of competent jurisdiction, or by operation of law.
(3) PROCEEDINGS NOT AFFECTED.—The provisions of this
section shall not affect any proceedings, including notices of
proposed rulemaking, or any application for any license, permit,
certificate, or financial assistance pending before the Depart-
ment of the Treasury (or any administrative unit of the Depart-
ment, including the Internal Revenue Service) at the time
this section takes effect, with respect to functions transferred
or affected by the reorganization under this section but such
proceedings and applications shall continue. Orders shall be
issued in such proceedings, appeals shall be taken therefrom,
and payments shall be made pursuant to such orders, as if
this section had not been enacted, and orders issued in any
such proceedings shall continue in effect until modified, termi-
nated, superseded, or revoked by a duly authorized official,
by a court of competent jurisdiction, or by operation of law.
Nothing in this paragraph shall be deemed to prohibit the
discontinuance or modification of any such proceeding under
the same terms and conditions and to the same extent that
such proceeding could have been discontinued or modified if
this section had not been enacted.
(4) SUITS NOT AFFECTED.—The provisions of this section
shall not affect suits commenced before the effective date of
this section, and in all such suits, proceedings shall be had,
appeals taken, and judgments rendered in the same manner
and with the same effect as if this section had not been enacted.
(5) NONABATEMENT OF ACTIONS.—No suit, action, or other
proceeding commenced by or against the Department of the
Treasury (or any administrative unit of the Department, includ-
ing the Internal Revenue Service), or by or against any individ-
ual in the official capacity of such individual as an officer
of the Department of the Treasury, shall abate by reason of
the enactment of this section.
(6) ADMINISTRATIVE ACTIONS RELATING TO PROMULGATION
OF REGULATIONS.—Any administrative action relating to the
preparation or promulgation of a regulation by the Department
of the Treasury (or any administrative unit of the Department,
including the Internal Revenue Service) relating to a function
transferred or affected by the reorganization under this section
may be continued by the Department of the Treasury through
any appropriate administrative unit of the Department, includ-
ing the Internal Revenue Service with the same effect as if
this section had not been enacted.
(c) EFFECTIVE DATE.—This section shall take effect on the date
of the enactment of this Act.
26 USC 7801 SEC. 1002. INTERNAL REVENUE SERVICE MISSION TO FOCUS ON TAX-
note. PAYERS’ NEEDS.
The Internal Revenue Service shall review and restate its mis-
sion to place a greater emphasis on serving the public and meeting
taxpayers’ needs.
Subtitle B—Executive Branch Governance

and Senior Management
SEC. 1101. INTERNAL REVENUE SERVICE OVERSIGHT BOARD.
(a) IN GENERAL.—Section 7802 (relating to the Commissioner
of Internal Revenue) is amended to read as follows:
‘‘SEC. 7802. INTERNAL REVENUE SERVICE OVERSIGHT BOARD.
‘‘(a) ESTABLISHMENT.—There is established within the Depart-
ment of the Treasury the Internal Revenue Service Oversight Board
(hereafter in this subchapter referred to as the ‘Oversight Board’).
‘‘(b) MEMBERSHIP.—
‘‘(1) COMPOSITION.—The Oversight Board shall be composed President.
of nine members, as follows:
‘‘(A) six members shall be individuals who are not
otherwise Federal officers or employees and who are
appointed by the President, by and with the advice and
consent of the Senate.
‘‘(B) one member shall be the Secretary of the Treasury
or, if the Secretary so designates, the Deputy Secretary
of the Treasury.
‘‘(C) one member shall be the Commissioner of Internal
Revenue.
‘‘(D) one member shall be an individual who is a full-
time Federal employee or a representative of employees
and who is appointed by the President, by and with the
advice and consent of the Senate.
‘‘(2) QUALIFICATIONS AND TERMS.—
‘‘(A) QUALIFICATIONS.—Members of the Oversight
Board described in paragraph (1)(A) shall be appointed
without regard to political affiliation and solely on the
basis of their professional experience and expertise in one
or more of the following areas:
‘‘(i) Management of large service organizations.
‘‘(ii) Customer service.
‘‘(iii) Federal tax laws, including tax administra-
tion and compliance.
‘‘(iv) Information technology.
‘‘(v) Organization development.
‘‘(vi) The needs and concerns of taxpayers.
‘‘(vii) The needs and concerns of small businesses.
In the aggregate, the members of the Oversight Board
described in paragraph (1)(A) should collectively bring to
bear expertise in all of the areas described in the preceding
sentence.
‘‘(B) TERMS.—Each member who is described in
subparagraph (A) or (D) of paragraph (1) shall be appointed
for a term of 5 years, except that of the members first
appointed under paragraph (1)(A)—
‘‘(i) two members shall be appointed for a term
of 3 years,
‘‘(ii) two members shall be appointed for a term
of 4 years; and
‘‘(iii) two members shall be appointed for a term
of 5 years.
‘‘(C) REAPPOINTMENT.—An individual who is described

in subparagraph (A) or (D) of paragraph (1) may be
appointed to no more than two 5-year terms on the Over-
sight Board.
‘‘(D) VACANCY.—Any vacancy on the Oversight Board
shall be filled in the same manner as the original appoint-
ment. Any member appointed to fill a vacancy occurring
before the expiration of the term for which the member’s
predecessor was appointed shall be appointed for the
remainder of that term.
‘‘(3) ETHICAL CONSIDERATIONS.—
‘‘(A) FINANCIAL DISCLOSURE.—During the entire period
that an individual appointed under subparagraph (A) or
(D) of paragraph (1) is a member of the Oversight Board,
such individual shall be treated as serving as an officer
or employee referred to in section 101(f ) of the Ethics
in Government Act of 1978 for purposes of title I of such
Act, except that section 101(d) of such Act shall apply
without regard to the number of days of service in the
position.
‘‘(B) RESTRICTIONS ON POST-EMPLOYMENT.—For pur-
poses of section 207(c) of title 18, United States Code,
an individual appointed under subparagraph (A) or (D)
of paragraph (1) shall be treated as an employee referred
to in section 207(c)(2)(A)(i) of such title during the entire
period the individual is a member of the Board, except
that subsections (c)(2)(B) and (f ) of section 207 of such
title shall not apply.
‘‘(C) MEMBERS WHO ARE SPECIAL GOVERNMENT EMPLOY-
EES.—If an individual appointed under subparagraph (A)
or (D) of paragraph (1) is a special Government employee,
the following additional rules apply for purposes of chapter
11 of title 18, United States Code:
‘‘(i) RESTRICTION ON REPRESENTATION.—In addition
to any restriction under section 205(c) of title 18,
United States Code, except as provided in subsections
(d) through (i) of section 205 of such title, such individ-
ual (except in the proper discharge of official duties)
shall not, with or without compensation, represent any-
one to or before any officer or employee of—
‘‘(I) the Oversight Board or the Internal Reve-
nue Service on any matter;
‘‘(II) the Department of the Treasury on any
matter involving the internal revenue laws or
involving the management or operations of the
Internal Revenue Service; or
‘‘(III) the Department of Justice with respect
to litigation involving a matter described in sub-
clause (I) or (II).
‘‘(ii) COMPENSATION FOR SERVICES PROVIDED BY
ANOTHER.—For purposes of section 203 of such title—
‘‘(I) such individual shall not be subject to
the restrictions of subsection (a)(1) thereof for shar-
ing in compensation earned by another for rep-
resentations on matters covered by such section,
and
‘‘(II) a person shall not be subject to the restric-

tions of subsection (a)(2) thereof for sharing such
compensation with such individual.
‘‘(D) WAIVER.—The President may, only at the time
the President nominates the member of the Oversight
Board described in paragraph (1)(D), waive for the term
of the member any appropriate provision of chapter 11
of title 18, United States Code, to the extent such waiver
is necessary to allow such member to participate in the
decisions of the Board while continuing to serve as a full-
time Federal employee or a representative of employees.
Any such waiver shall not be effective unless a written
intent of waiver to exempt such member (and actual waiver
language) is submitted to the Senate with the nomination
of such member.
‘‘(4) QUORUM.—Five members of the Oversight Board shall
constitute a quorum. A majority of members present and voting
shall be required for the Oversight Board to take action.
‘‘(5) REMOVAL.—
‘‘(A) IN GENERAL.—Any member of the Oversight Board
appointed under subparagraph (A) or (D) of paragraph
(1) may be removed at the will of the President.
‘‘(B) SECRETARY AND COMMISSIONER.—An individual
described in subparagraph (B) or (C) of paragraph (1) shall
be removed upon termination of service in the office
described in such subparagraph.
‘‘(6) CLAIMS.—
‘‘(A) IN GENERAL.—Members of the Oversight Board
who are described in subparagraph (A) or (D) of paragraph
(1) shall have no personal liability under Federal law with
respect to any claim arising out of or resulting from an
act or omission by such member within the scope of service
as a member.
‘‘(B) EFFECT ON OTHER LAW.—This paragraph shall
not be construed—
‘‘(i) to affect any other immunities and protections
that may be available to such member under applicable
law with respect to such transactions;
‘‘(ii) to affect any other right or remedy against
the United States under applicable law; or
‘‘(iii) to limit or alter in any way the immunities
that are available under applicable law for Federal
officers and employees.
‘‘(c) GENERAL RESPONSIBILITIES.—
‘‘(1) OVERSIGHT.—
‘‘(A) IN GENERAL.—The Oversight Board shall oversee
the Internal Revenue Service in its administration,
management, conduct, direction, and supervision of the
execution and application of the internal revenue laws
or related statutes and tax conventions to which the United
States is a party.
‘‘(B) MISSION OF IRS.—As part of its oversight functions
described in subparagraph (A), the Oversight Board shall
ensure that the organization and operation of the Internal
Revenue Service allows it to carry out its mission.
‘‘(C) CONFIDENTIALITY.—The Oversight Board shall

ensure that appropriate confidentiality is maintained in
the exercise of its duties.
‘‘(2) EXCEPTIONS.—The Oversight Board shall have no
responsibilities or authority with respect to—
‘‘(A) the development and formulation of Federal tax
policy relating to existing or proposed internal revenue
laws, related statutes, and tax conventions,
‘‘(B) specific law enforcement activities of the Internal
Revenue Service, including specific compliance activities
such as examinations, collection activities, and criminal
investigations,
‘‘(C) specific procurement activities of the Internal
Revenue Service, or
‘‘(D) except as provided in subsection (d)(3), specific
personnel actions.
‘‘(d) SPECIFIC RESPONSIBILITIES.—The Oversight Board shall
have the following specific responsibilities:
‘‘(1) STRATEGIC PLANS.—To review and approve strategic
plans of the Internal Revenue Service, including the establish-
ment of—
‘‘(A) mission and objectives, and standards of perform-
ance relative to either, and
‘‘(B) annual and long-range strategic plans.
‘‘(2) OPERATIONAL PLANS.—To review the operational
functions of the Internal Revenue Service, including—
‘‘(A) plans for modernization of the tax system,
‘‘(B) plans for outsourcing or managed competition,
and
‘‘(C) plans for training and education.
‘‘(3) MANAGEMENT.—To—
‘‘(A) recommend to the President candidates for
appointment as the Commissioner of Internal Revenue and
recommend to the President the removal of the Commis-
sioner;
‘‘(B) review the Commissioner’s selection, evaluation,
and compensation of Internal Revenue Service senior execu-
tives who have program management responsibility over
significant functions of the Internal Revenue Service; and
‘‘(C) review and approve the Commissioner’s plans for
any major reorganization of the Internal Revenue Service.
‘‘(4) BUDGET.—To—
‘‘(A) review and approve the budget request of the
Internal Revenue Service prepared by the Commissioner;
‘‘(B) submit such budget request to the Secretary of
the Treasury; and
‘‘(C) ensure that the budget request supports the
annual and long-range strategic plans.
‘‘(5) TAXPAYER PROTECTION.—To ensure the proper treat-
ment of taxpayers by the employees of the Internal Revenue
Service.
The Secretary shall submit the budget request referred to in para-
graph (4)(B) for any fiscal year to the President who shall submit
such request, without revision, to Congress together with the Presi-
dent’s annual budget request for the Internal Revenue Service
for such fiscal year.
‘‘(e) BOARD PERSONNEL MATTERS.—
‘‘(1) COMPENSATION OF MEMBERS.—

‘‘(A) IN GENERAL.—Each member of the Oversight
Board who—
‘‘(i) is described in subsection (b)(1)(A); or
‘‘(ii) is described in subsection (b)(1)(D) and is not
otherwise a Federal officer or employee,
shall be compensated at a rate of $30,000 per year. All
other members shall serve without compensation for such
service.
‘‘(B) CHAIRPERSON.—In lieu of the amount specified
in subparagraph (A), the Chairperson of the Oversight
Board shall be compensated at a rate of $50,000 per year.
‘‘(2) TRAVEL EXPENSES.—
‘‘(A) IN GENERAL.—The members of the Oversight
Board shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees
of agencies under subchapter I of chapter 57 of title 5,
United States Code, to attend meetings of the Oversight
Board and, with the advance approval of the Chairperson
of the Oversight Board, while otherwise away from their
homes or regular places of business for purposes of duties
as a member of the Oversight Board.
‘‘(B) REPORT.—The Oversight Board shall include in
its annual report under subsection (f )(3)(A) information
with respect to the travel expenses allowed for members
of the Oversight Board under this paragraph.
‘‘(3) STAFF.—
‘‘(A) IN GENERAL.—The Chairperson of the Oversight
Board may appoint and terminate any personnel that may
be necessary to enable the Board to perform its duties.
‘‘(B) DETAIL OF GOVERNMENT EMPLOYEES.—Upon
request of the Chairperson of the Oversight Board, a Fed-
eral agency shall detail a Federal Government employee
to the Oversight Board without reimbursement. Such detail
shall be without interruption or loss of civil service status
or privilege.
‘‘(4) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERV-
ICES.—The Chairperson of the Oversight Board may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code.
‘‘(f ) ADMINISTRATIVE MATTERS.—
‘‘(1) CHAIR.—
‘‘(A) TERM.—The members of the Oversight Board shall
elect for a 2-year term a chairperson from among the
members appointed under subsection (b)(1)(A).
‘‘(B) POWERS.—Except as otherwise provided by a
majority vote of the Oversight Board, the powers of the
Chairperson shall include—
‘‘(i) establishing committees;
‘‘(ii) setting meeting places and times;
‘‘(iii) establishing meeting agendas; and
‘‘(iv) developing rules for the conduct of business.
‘‘(2) MEETINGS.—The Oversight Board shall meet at least
quarterly and at such other times as the Chairperson deter-
mines appropriate.
‘‘(3) REPORTS.—
‘‘(A) ANNUAL.—The Oversight Board shall each year

report with respect to the conduct of its responsibilities
under this title to the President, the Committees on Ways
and Means, Government Reform and Oversight, and Appro-
priations of the House of Representatives and the Commit-
tees on Finance, Governmental Affairs, and Appropriations
of the Senate.
‘‘(B) ADDITIONAL REPORT.—Upon a determination by
the Oversight Board under subsection (c)(1)(B) that the
organization and operation of the Internal Revenue Service
are not allowing it to carry out its mission, the Oversight
Board shall report such determination to the Committee
on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate.’’.
(b) RESTRICTION ON DISCLOSURE OF RETURN INFORMATION TO
OVERSIGHT BOARD MEMBERS.—Section 6103(h) (relating to disclo-
sure to certain Federal officers and employees for purposes of tax
administration, etc.) is amended by adding at the end the following
new paragraph:
‘‘(5) INTERNAL REVENUE SERVICE OVERSIGHT BOARD.—
‘‘(A) IN GENERAL.—Notwithstanding paragraph (1), and
except as provided in subparagraph (B), no return or return
information may be disclosed to any member of the Over-
sight Board described in subparagraph (A) or (D) of section
7802(b)(1) or to any employee or detailee of such Board
by reason of their service with the Board. Any request
for information not permitted to be disclosed under the
preceding sentence, and any contact relating to a specific
taxpayer, made by any such individual to an officer or
employee of the Internal Revenue Service shall be reported
by such officer or employee to the Secretary, the Treasury
Inspector General for Tax Administration, and the Joint
Committee on Taxation.
‘‘(B) EXCEPTION FOR REPORTS TO THE BOARD.—If—
‘‘(i) the Commissioner or the Treasury Inspector
General for Tax Administration prepares any report
or other matter for the Oversight Board in order to
assist the Board in carrying out its duties; and
‘‘(ii) the Commissioner or such Inspector General
determines it is necessary to include any return or
return information in such report or other matter to
enable the Board to carry out such duties,
such return or return information (other than information
regarding taxpayer identity) may be disclosed to members,
employees, or detailees of the Board solely for the purpose
of carrying out such duties.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 4946(c) (relating to definitions and special rules
for chapter 42) is amended by striking ‘‘or’’ at the end of
paragraph (5), by striking the period at the end of paragraph
(6) and inserting ‘‘, or’’, and by adding at the end the following
new paragraph:
‘‘(7) a member of the Internal Revenue Service Oversight
Board.’’.
(2) The table of sections for subchapter A of chapter 80

is amended by striking the item relating to section 7802 and
inserting the following new item:
‘‘Sec. 7802. Internal Revenue Service Oversight Board.’’.
(d) EFFECTIVE DATE.— 26 USC 7802
(1) IN GENERAL.—The amendments made by this section note.
shall take effect on the date of the enactment of this Act.
(2) INITIAL NOMINATIONS TO INTERNAL REVENUE SERVICE President.
OVERSIGHT BOARD.—The President shall submit the initial Deadline.
nominations under section 7802 of the Internal Revenue Code
of 1986, as added by this section, to the Senate not later
than 6 months after the date of the enactment of this Act.
(3) EFFECT ON ACTIONS PRIOR TO APPOINTMENT OF OVER-
SIGHT BOARD.—Nothing in this section shall be construed to
invalidate the actions and authority of the Internal Revenue
Service prior to the appointment of the members of the Internal
Revenue Service Oversight Board.
SEC. 1102. COMMISSIONER OF INTERNAL REVENUE; OTHER OFFICIALS.
(a) IN GENERAL.—Section 7803 (relating to other personnel)
is amended to read as follows:
‘‘SEC. 7803. COMMISSIONER OF INTERNAL REVENUE; OTHER OFFI-
CIALS.
‘‘(a) COMMISSIONER OF INTERNAL REVENUE.—
‘‘(1) APPOINTMENT.—
‘‘(A) IN GENERAL.—There shall be in the Department President.
of the Treasury a Commissioner of Internal Revenue who
shall be appointed by the President, by and with the advice
and consent of the Senate, to a 5-year term. Such appoint-
ment shall be made from individuals who, among other
qualifications, have a demonstrated ability in management.
‘‘(B) VACANCY.—Any individual appointed to fill a
vacancy in the position of Commissioner occurring before
the expiration of the term for which such individual’s prede-
cessor was appointed shall be appointed only for the
remainder of that term.
‘‘(C) REMOVAL.—The Commissioner may be removed
at the will of the President.
‘‘(D) REAPPOINTMENT.—The Commissioner may be
appointed to more than one 5-year term.
‘‘(2) DUTIES.—The Commissioner shall have such duties
and powers as the Secretary may prescribe, including the power
to—
‘‘(A) administer, manage, conduct, direct, and supervise
the execution and application of the internal revenue laws
or related statutes and tax conventions to which the United
States is a party; and
‘‘(B) recommend to the President a candidate for
appointment as Chief Counsel for the Internal Revenue
Service when a vacancy occurs, and recommend to the
President the removal of such Chief Counsel.
If the Secretary determines not to delegate a power specified
in subparagraph (A) or (B), such determination may not take
effect until 30 days after the Secretary notifies the Committees
on Ways and Means, Government Reform and Oversight, and
Appropriations of the House of Representatives and the
Committees on Finance, Governmental Affairs, and Appropria-

tions of the Senate.
‘‘(3) CONSULTATION WITH BOARD.—The Commissioner shall
consult with the Oversight Board on all matters set forth in
paragraphs (2) and (3) (other than paragraph (3)(A)) of section
7802(d).
President. ‘‘(b) CHIEF COUNSEL FOR THE INTERNAL REVENUE SERVICE.—
‘‘(1) APPOINTMENT.—There shall be in the Department of
the Treasury a Chief Counsel for the Internal Revenue Service
who shall be appointed by the President, by and with the
consent of the Senate.
‘‘(2) DUTIES.—The Chief Counsel shall be the chief law
officer for the Internal Revenue Service and shall perform such
duties as may be prescribed by the Secretary, including the
duty—
‘‘(A) to be legal advisor to the Commissioner and the
Commissioner’s officers and employees;
‘‘(B) to furnish legal opinions for the preparation and
review of rulings and memoranda of technical advice;
‘‘(C) to prepare, review, and assist in the preparation
of proposed legislation, treaties, regulations, and Executive
orders relating to laws which affect the Internal Revenue
Service;
‘‘(D) to represent the Commissioner in cases before
the Tax Court; and
‘‘(E) to determine which civil actions should be litigated
under the laws relating to the Internal Revenue Service
and prepare recommendations for the Department of Jus-
tice regarding the commencement of such actions.
If the Secretary determines not to delegate a power specified
in subparagraph (A), (B), (C), (D), or (E), such determination
may not take effect until 30 days after the Secretary notifies
the Committees on Ways and Means, Government Reform and
Oversight, and Appropriations of the House of Representatives
and the Committees on Finance, Governmental Affairs, and
Appropriations of the Senate.
‘‘(3) PERSONS TO WHOM CHIEF COUNSEL REPORTS.—The
Chief Counsel shall report directly to the Commissioner of
Internal Revenue, except that—
‘‘(A) the Chief Counsel shall report to both the Commis-
sioner and the General Counsel for the Department of
the Treasury with respect to—
‘‘(i) legal advice or interpretation of the tax law
not relating solely to tax policy;
‘‘(ii) tax litigation; and
‘‘(B) the Chief Counsel shall report to the General
Counsel with respect to legal advice or interpretation of
the tax law relating solely to tax policy.
If there is any disagreement between the Commissioner and
the General Counsel with respect to any matter jointly referred
to them under subparagraph (A), such matter shall be submit-
ted to the Secretary or Deputy Secretary for resolution.
‘‘(4) CHIEF COUNSEL PERSONNEL.—All personnel in the
Office of Chief Counsel shall report to the Chief Counsel.
‘‘(c) OFFICE OF THE TAXPAYER ADVOCATE.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN GENERAL.—There is established in the Internal

Revenue Service an office to be known as the ‘Office of
the Taxpayer Advocate’.
‘‘(B) NATIONAL TAXPAYER ADVOCATE.—
‘‘(i) IN GENERAL.—The Office of the Taxpayer Advo-
cate shall be under the supervision and direction of
an official to be known as the ‘National Taxpayer Advo-
cate’. The National Taxpayer Advocate shall report
directly to the Commissioner of Internal Revenue and
shall be entitled to compensation at the same rate
as the highest rate of basic pay established for the
Senior Executive Service under section 5382 of title
5, United States Code, or, if the Secretary of the Treas-
ury so determines, at a rate fixed under section 9503
of such title.
‘‘(ii) APPOINTMENT.—The National Taxpayer Advo-
cate shall be appointed by the Secretary of the Treas-
ury after consultation with the Commissioner of
Internal Revenue and the Oversight Board and without
regard to the provisions of title 5, United States Code,
relating to appointments in the competitive service
or the Senior Executive Service.
‘‘(iii) QUALIFICATIONS.—An individual appointed
under clause (ii) shall have—
‘‘(I) a background in customer service as well
as tax law; and
‘‘(II) experience in representing individual tax-
payers.
‘‘(iv) RESTRICTION ON EMPLOYMENT.—An individual
may be appointed as the National Taxpayer Advocate
only if such individual was not an officer or employee
of the Internal Revenue Service during the 2-year
period ending with such appointment and such individ-
ual agrees not to accept any employment with the
Internal Revenue Service for at least 5 years after
ceasing to be the National Taxpayer Advocate. Service
as an officer or employee of the Office of the Taxpayer
Advocate shall not be taken into account in applying
this clause.
‘‘(2) FUNCTIONS OF OFFICE.—
‘‘(A) IN GENERAL.—It shall be the function of the Office
of the Taxpayer Advocate to—
‘‘(i) assist taxpayers in resolving problems with
the Internal Revenue Service;
‘‘(ii) identify areas in which taxpayers have prob-
lems in dealings with the Internal Revenue Service;
‘‘(iii) to the extent possible, propose changes in
the administrative practices of the Internal Revenue
Service to mitigate problems identified under clause
(ii); and
‘‘(iv) identify potential legislative changes which
may be appropriate to mitigate such problems.
‘‘(B) ANNUAL REPORTS.—
‘‘(i) OBJECTIVES.—Not later than June 30 of each Deadline.
calendar year, the National Taxpayer Advocate shall
report to the Committee on Ways and Means of the
House of Representatives and the Committee on
Finance of the Senate on the objectives of the Office

of the Taxpayer Advocate for the fiscal year beginning
in such calendar year. Any such report shall contain
full and substantive analysis, in addition to statistical
information.
Deadline. ‘‘(ii) ACTIVITIES.—Not later than December 31 of
each calendar year, the National Taxpayer Advocate
shall report to the Committee on Ways and Means
of the House of Representatives and the Committee
on Finance of the Senate on the activities of the Office
of the Taxpayer Advocate during the fiscal year ending
during such calendar year. Any such report shall con-
tain full and substantive analysis, in addition to statis-
tical information, and shall—
‘‘(I) identify the initiatives the Office of the
Taxpayer Advocate has taken on improving tax-
payer services and Internal Revenue Service
responsiveness;
‘‘(II) contain recommendations received from
individuals with the authority to issue Taxpayer
Assistance Orders under section 7811;
‘‘(III) contain a summary of at least 20 of
the most serious problems encountered by tax-
payers, including a description of the nature of
such problems;
‘‘(IV) contain an inventory of the items
described in subclauses (I), (II), and (III) for which
action has been taken and the result of such action;
‘‘(V) contain an inventory of the items
action remains to be completed and the period
during which each item has remained on such
inventory;
‘‘(VI) contain an inventory of the items
no action has been taken, the period during which
each item has remained on such inventory, the
reasons for the inaction, and identify any Internal
Revenue Service official who is responsible for such
inaction;
‘‘(VII) identify any Taxpayer Assistance Order
which was not honored by the Internal Revenue
Service in a timely manner, as specified under
section 7811(b);
‘‘(VIII) contain recommendations for such
administrative and legislative action as may be
appropriate to resolve problems encountered by
taxpayers;
‘‘(IX) identify areas of the tax law that impose
significant compliance burdens on taxpayers or the
Internal Revenue Service, including specific rec-
ommendations for remedying these problems;
‘‘(X) identify the 10 most litigated issues for
each category of taxpayers, including recommenda-
tions for mitigating such disputes; and
‘‘(XI) include such other information as the
National Taxpayer Advocate may deem advisable.
‘‘(iii) REPORT TO BE SUBMITTED DIRECTLY.—Each

report required under this subparagraph shall be pro-
vided directly to the committees described in clause
(i) without any prior review or comment from the
Commissioner, the Secretary of the Treasury, the Over-
sight Board, any other officer or employee of the
Department of the Treasury, or the Office of Manage-
ment and Budget.
‘‘(iv) COORDINATION WITH REPORT OF TREASURY
INSPECTOR GENERAL FOR TAX ADMINISTRATION.—To the
extent that information required to be reported under
clause (ii) is also required to be reported under para-
graph (1) or (2) of subsection (d) by the Treasury
Inspector General for Tax Administration, the National
Taxpayer Advocate shall not contain such information
in the report submitted under such clause.
‘‘(C) OTHER RESPONSIBILITIES.—The National Taxpayer
Advocate shall—
‘‘(i) monitor the coverage and geographic allocation
of local offices of taxpayer advocates;
‘‘(ii) develop guidance to be distributed to all
Internal Revenue Service officers and employees outlin-
ing the criteria for referral of taxpayer inquiries to
local offices of taxpayer advocates;
‘‘(iii) ensure that the local telephone number for
each local office of the taxpayer advocate is published
and available to taxpayers served by the office; and
‘‘(iv) in conjunction with the Commissioner,
develop career paths for local taxpayer advocates choos-
ing to make a career in the Office of the Taxpayer
Advocate.
‘‘(D) PERSONNEL ACTIONS.—
‘‘(i) IN GENERAL.—The National Taxpayer Advocate
shall have the responsibility and authority to—
‘‘(I) appoint local taxpayer advocates and make
available at least 1 such advocate for each State;
and
‘‘(II) evaluate and take personnel actions
(including dismissal) with respect to any employee
of any local office of a taxpayer advocate described
in subclause (I).
‘‘(ii) CONSULTATION.—The National Taxpayer
Advocate may consult with the appropriate supervisory
personnel of the Internal Revenue Service in carrying
out the National Taxpayer Advocate’s responsibilities
under this subparagraph.
‘‘(3) RESPONSIBILITIES OF COMMISSIONER.—The Commis- Procedures.
sioner shall establish procedures requiring a formal response
to all recommendations submitted to the Commissioner by the
National Taxpayer Advocate within 3 months after submission
to the Commissioner.
‘‘(4) OPERATION OF LOCAL OFFICES.—
‘‘(A) IN GENERAL.—Each local taxpayer advocate—
‘‘(i) shall report to the National Taxpayer Advocate
or delegate thereof;
‘‘(ii) may consult with the appropriate supervisory
personnel of the Internal Revenue Service regarding
the daily operation of the local office of the taxpayer

advocate;
Notification. ‘‘(iii) shall, at the initial meeting with any taxpayer
seeking the assistance of a local office of the taxpayer
advocate, notify such taxpayer that the taxpayer advo-
cate offices operate independently of any other Internal
Revenue Service office and report directly to Congress
through the National Taxpayer Advocate; and
‘‘(iv) may, at the taxpayer advocate’s discretion,
not disclose to the Internal Revenue Service contact
with, or information provided by, such taxpayer.
‘‘(B) MAINTENANCE OF INDEPENDENT COMMUNICA-
TIONS.—Each local office of the taxpayer advocate shall
maintain a separate phone, facsimile, and other electronic
communication access, and a separate post office address.
‘‘(d) ADDITIONAL DUTIES OF THE TREASURY INSPECTOR GENERAL
FOR TAX ADMINISTRATION.—
‘‘(1) ANNUAL REPORTING.—The Treasury Inspector General
for Tax Administration shall include in one of the semiannual
reports under section 5 of the Inspector General Act of 1978—
‘‘(A) an evaluation of the compliance of the Internal
Revenue Service with—
‘‘(i) restrictions under section 1204 of the Internal
Revenue Service Restructuring and Reform Act of 1998
on the use of enforcement statistics to evaluate Internal
Revenue Service employees;
‘‘(ii) restrictions under section 7521 on directly con-
tacting taxpayers who have indicated that they prefer
their representatives be contacted;
‘‘(iii) required procedures under section 6320 upon
the filing of a notice of a lien;
‘‘(iv) required procedures under subchapter D of
chapter 64 for seizure of property for collection of taxes,
including required procedures under section 6330
regarding levies; and
‘‘(v) restrictions under section 3707 of the Internal
Revenue Service Restructuring and Reform Act of 1998
on designation of taxpayers;
‘‘(B) a review and a certification of whether or not
the Secretary is complying with the requirements of section
6103(e)(8) to disclose information to an individual filing
a joint return on collection activity involving the other
individual filing the return;
‘‘(C) information regarding extensions of the statute
of limitations for assessment and collection of tax under
section 6501 and the provision of notice to taxpayers
regarding requests for such extension;
‘‘(D) an evaluation of the adequacy and security of
the technology of the Internal Revenue Service;
‘‘(E) any termination or mitigation under section 1203
of the Internal Revenue Service Restructuring and Reform
Act of 1998;
‘‘(F) information regarding improper denial of requests
for information from the Internal Revenue Service identi-
fied under paragraph (3)(A); and
‘‘(G) information regarding any administrative or civil

actions with respect to violations of the fair debt collection
provisions of section 6304, including—
‘‘(i) a summary of such actions initiated since the
date of the last report; and
‘‘(ii) a summary of any judgments or awards
granted as a result of such actions.
‘‘(2) SEMIANNUAL REPORTS.—
‘‘(A) IN GENERAL.—The Treasury Inspector General for
Tax Administration shall include in each semiannual report
under section 5 of the Inspector General Act of 1978—
‘‘(i) the number of taxpayer complaints during the
reporting period;
‘‘(ii) the number of employee misconduct and tax-
payer abuse allegations received by the Internal Reve-
nue Service or the Inspector General during the period
from taxpayers, Internal Revenue Service employees,
and other sources;
‘‘(iii) a summary of the status of such complaints
and allegations; and
‘‘(iv) a summary of the disposition of such com-
plaints and allegations, including the outcome of any
Department of Justice action and any monies paid
as a settlement of such complaints and allegations.
‘‘(B) Clauses (iii) and (iv) of subparagraph (A) shall Applicability.
only apply to complaints and allegations of serious
employee misconduct.
‘‘(3) OTHER RESPONSIBILITIES.—The Treasury Inspector
General for Tax Administration shall—
‘‘(A) conduct periodic audits of a statistically valid sam-
ple of the total number of determinations made by the
Internal Revenue Service to deny written requests to dis-
close information to taxpayers on the basis of section 6103
of this title or section 552(b)(7) of title 5, United States
Code; and
‘‘(B) establish and maintain a toll-free telephone num- Communications
ber for taxpayers to use to confidentially register com- and tele-
communication.
plaints of misconduct by Internal Revenue Service employ-
ees and incorporate the telephone number in the statement
required by section 6227 of the Omnibus Taxpayer Bill
of Rights (Internal Revenue Service Publication No. 1).’’.
(b) NOTICE OF RIGHT TO CONTACT OFFICE INCLUDED IN NOTICE
OF DEFICIENCY.—Section 6212(a) (relating to notice of deficiency)
is amended by adding at the end the following new sentence:
‘‘Such notice shall include a notice to the taxpayer of the taxpayer’s
right to contact a local office of the taxpayer advocate and the
location and phone number of the appropriate office.’’.
(c) EXPANSION OF AUTHORITY TO ISSUE TAXPAYER ASSISTANCE
ORDERS.—Section 7811(a) (relating to taxpayer assistance orders)
‘‘(a) AUTHORITY TO ISSUE.—
‘‘(1) IN GENERAL.—Upon application filed by a taxpayer Regulations.
with the Office of the Taxpayer Advocate (in such form, manner,
and at such time as the Secretary shall by regulations pre-
scribe), the National Taxpayer Advocate may issue a Taxpayer
Assistance Order if—
‘‘(A) the National Taxpayer Advocate determines the

taxpayer is suffering or about to suffer a significant
hardship as a result of the manner in which the internal
revenue laws are being administered by the Secretary;
or
‘‘(B) the taxpayer meets such other requirements as
are set forth in regulations prescribed by the Secretary.
‘‘(2) DETERMINATION OF HARDSHIP.—For purposes of
paragraph (1), a significant hardship shall include—
‘‘(A) an immediate threat of adverse action;
‘‘(B) a delay of more than 30 days in resolving taxpayer
account problems;
‘‘(C) the incurring by the taxpayer of significant costs
(including fees for professional representation) if relief is
not granted; or
‘‘(D) irreparable injury to, or a long-term adverse
impact on, the taxpayer if relief is not granted.
‘‘(3) STANDARD WHERE ADMINISTRATIVE GUIDANCE NOT
FOLLOWED.—In cases where any Internal Revenue Service
employee is not following applicable published administrative
guidance (including the Internal Revenue Manual), the
National Taxpayer Advocate shall construe the factors taken
into account in determining whether to issue a taxpayer assist-
ance order in the manner most favorable to the taxpayer.’’.
(d) CONFORMING AMENDMENTS RELATING TO NATIONAL
TAXPAYER ADVOCATE.—
(1) The following provisions are each amended by striking
‘‘Taxpayer Advocate’’ each place it appears and inserting
‘‘National Taxpayer Advocate’’:
(A) Section 6323( j)(1)(D) (relating to withdrawal of
notice in certain circumstances).
(B) Section 6343(d)(2)(D) (relating to return of property
in certain cases).
(C) Section 7811(b)(2)(D) (relating to terms of a
Taxpayer Assistance Order).
(D) Section 7811(c) (relating to authority to modify
or rescind).
(E) Section 7811(d)(2) (relating to suspension of
running of period of limitation).
(F) Section 7811(e) (relating to independent action of
Taxpayer Advocate).
(G) Section 7811(f ) (relating to Taxpayer Advocate).
(2) Section 7811(d)(1) (relating to suspension of running
of period of limitation) is amended by striking ‘‘Taxpayer
Advocate’s’’ and inserting ‘‘National Taxpayer Advocate’s’’.
(3) The headings of subsections (e) and (f ) of section 7811
are each amended by striking ‘‘TAXPAYER ADVOCATE’’ and
inserting ‘‘NATIONAL TAXPAYER ADVOCATE’’.
(e) ADDITIONAL CONFORMING AMENDMENTS.—
‘‘Sec. 7803. Commissioner of Internal Revenue; other officials.’’.
(2) Section 5109 of title 5, United States Code, is amended
by striking subsection (b) and redesignating subsection (c) as
subsection (b).
(3) Section 7611(f )(1) (relating to restrictions on church

tax inquiries and examinations) is amended by striking
‘‘Assistant Commissioner for Employee Plans and Exempt
Organizations of the Internal Revenue Service’’ and inserting
‘‘Secretary’’.
(f ) EFFECTIVE DATE.— 26 USC 7803
(1) IN GENERAL.—Except as provided in paragraph (2), the note.
amendments made by this section shall take effect on the
date of the enactment of this Act.
(2) CHIEF COUNSEL.—Section 7803(b)(3) of the Internal
Revenue Code of 1986, as added by this section, shall take
effect on the date that is 90 days after the date of the enactment
of this Act.
(3) NATIONAL TAXPAYER ADVOCATE.—Notwithstanding
section 7803(c)(1)(B)(iv) of such Code, as added by this section,
in appointing the first National Taxpayer Advocate after
the date of the enactment of this Act, the Secretary of the
Treasury—
(A) shall not appoint any individual who was an officer
or employee of the Internal Revenue Service at any time
during the 2-year period ending on the date of appointment;
and
(B) need not consult with the Internal Revenue Service
Oversight Board if the Oversight Board has not been
appointed.
(4) CURRENT OFFICERS.—
(A) In the case of an individual serving as Commis-
sioner of Internal Revenue on the date of the enactment
of this Act who was appointed to such position before
such date, the 5-year term required by section 7803(a)(1)
of such Code, as added by this section, shall begin as
of the date of such appointment.
(B) Clauses (ii), (iii), and (iv) of section 7803(c)(1)(B)
of such Code, as added by this section, shall not apply
to the individual serving as Taxpayer Advocate on the
SEC. 1103. TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRA-
TION.
(a) ESTABLISHMENT OF TWO INSPECTORS GENERAL IN THE
DEPARTMENT OF THE TREASURY.—Section 2 of the Inspector General
Act of 1978 (5 U.S.C. App.) is amended by striking the matter
following paragraph (3) and inserting the following:
‘‘there is established—
‘‘(A) in each of such establishments an office of Inspec-
tor General, subject to subparagraph (B); and
‘‘(B) in the establishment of the Department of the
Treasury—
‘‘(i) an Office of Inspector General of the Depart-
ment of the Treasury; and
‘‘(ii) an Office of Treasury Inspector General for
Tax Administration.’’.
(b) AMENDMENTS TO SECTION 8D OF THE INSPECTOR GENERAL
ACT OF 1978.—
(1) LIMITATION ON AUTHORITY OF INSPECTOR GENERAL.—
Section 8D(a) of the Inspector General Act of 1978 (5 U.S.C.
App.) is amended by adding at the end the following new

paragraph:
‘‘(4) The Secretary of the Treasury may not exercise any
power under paragraph (1) or (2) with respect to the Treasury
Inspector General for Tax Administration.’’.
(2) DUTIES OF INSPECTOR GENERAL OF THE DEPARTMENT
OF THE TREASURY; RELATIONSHIP TO THE TREASURY INSPECTOR
GENERAL FOR TAX ADMINISTRATION.—Section 8D(b) of such Act
5 USC app. is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(B) by adding at the end the following new paragraphs:
‘‘(2) The Inspector General of the Department of the Treas-
ury shall exercise all duties and responsibilities of an Inspector
General for the Department of the Treasury other than the
duties and responsibilities exercised by the Treasury Inspector
General for Tax Administration.
Procedures. ‘‘(3) The Secretary of the Treasury shall establish proce-
dures under which the Inspector General of the Department
of the Treasury and the Treasury Inspector General for Tax
Administration will—
‘‘(A) determine how audits and investigations are
allocated in cases of overlapping jurisdiction; and
‘‘(B) provide for coordination, cooperation, and effi-
ciency in the conduct of such audits and investigations.’’.
(3) ACCESS TO RETURNS AND RETURN INFORMATION.—
5 USC app. Section 8D(e) of such Act is amended—
(A) in paragraph (1), by striking ‘‘Inspector General’’
and inserting ‘‘Treasury Inspector General for Tax Adminis-
tration’’;
(B) in paragraph (2), by striking all beginning with
‘‘(2)’’ through subparagraph (B);
(C)(i) by redesignating subparagraph (C) of paragraph
(2) as paragraph (2) of such subsection; and
(ii) in such redesignated paragraph (2), by striking
‘‘Inspector General’’ and inserting ‘‘Treasury Inspector Gen-
eral for Tax Administration’’; and
(D)(i) by redesignating subparagraph (D) of such
paragraph as paragraph (3) of such subsection; and
(ii) in such redesignated paragraph (3), by striking
‘‘Inspector General’’ and inserting ‘‘Treasury Inspector Gen-
eral for Tax Administration’’.
(4) EFFECT ON CERTAIN FINAL DECISIONS OF THE
SECRETARY.—Section 8D(f ) of such Act is amended by striking
‘‘Inspector General’’ and inserting ‘‘Inspector General of the
Department of the Treasury or the Treasury Inspector General
for Tax Administration’’.
(5) REPEAL OF LIMITATION ON REPORTS TO THE ATTORNEY
GENERAL.—Section 8D of such Act is amended by striking
subsection (g).
(6) TRANSMISSION OF REPORTS.—Section 8D(h) of such Act
is amended—
(A) by striking ‘‘(h)’’ and inserting ‘‘(g)(1)’’;
(B) by striking ‘‘and the Committees on Government
Operations and Ways and Means of the House of Represent-
atives’’ and inserting ‘‘and the Committees on Government
Reform and Oversight and Ways and Means of the House
of Representatives’’; and
(C) by adding at the end the following new paragraph:

‘‘(2) Any report made by the Treasury Inspector General for
Tax Administration that is required to be transmitted by the Sec-
retary of the Treasury to the appropriate committees or subcommit-
tees of Congress under section 5(d) shall also be transmitted, within
the 7-day period specified under such subsection, to the Internal
Revenue Service Oversight Board and the Commissioner of Internal
Revenue.’’.
(7) TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRA-
TION.—Section 8D of the Act is amended by adding at the 5 USC app.
end the following new subsections:
‘‘(h) The Treasury Inspector General for Tax Administration
shall exercise all duties and responsibilities of an Inspector General
of an establishment with respect to the Department of the Treasury
and the Secretary of the Treasury on all matters relating to the
Internal Revenue Service. The Treasury Inspector General for Tax
Administration shall have sole authority under this Act to conduct
an audit or investigation of the Internal Revenue Service Oversight
Board and the Chief Counsel for the Internal Revenue Service.
‘‘(i) In addition to the requirements of the first sentence of
section 3(a), the Treasury Inspector General for Tax Administration
should have demonstrated ability to lead a large and complex
organization.
‘‘( j) An individual appointed to the position of Treasury Inspec-
tor General for Tax Administration, the Assistant Inspector General
for Auditing of the Office of the Treasury Inspector General for
Tax Administration under section 3(d)(1), the Assistant Inspector
General for Investigations of the Office of the Treasury Inspector
General for Tax Administration under section 3(d)(2), or any posi-
tion of Deputy Inspector General of the Office of the Treasury
Inspector General for Tax Administration may not be an employee
of the Internal Revenue Service—
‘‘(1) during the 2-year period preceding the date of appoint-
ment to such position; or
‘‘(2) during the 5-year period following the date such
individual ends service in such position.
‘‘(k)(1) In addition to the duties and responsibilities exercised
by an inspector general of an establishment, the Treasury Inspector
General for Tax Administration—
‘‘(A) shall have the duty to enforce criminal provisions
under section 7608(b) of the Internal Revenue Code of 1986;
‘‘(B) in addition to the functions authorized under section
7608(b)(2) of such Code, may carry firearms;
‘‘(C) shall be responsible for protecting the Internal Reve-
nue Service against external attempts to corrupt or threaten
employees of the Internal Revenue Service, but shall not be
responsible for the conducting of background checks and the
providing of physical security; and
‘‘(D) may designate any employee in the Office of the Treas-
ury Inspector General for Tax Administration to enforce such
laws and perform such functions referred to under subpara-
graphs (A), (B), and (C).
‘‘(2)(A) In performing a law enforcement function under para-
graph (1), the Treasury Inspector General for Tax Administration
shall report any reasonable grounds to believe there has been
a violation of Federal criminal law to the Attorney General at
an appropriate time as determined by the Treasury Inspector Gen-

eral for Tax Administration, notwithstanding section 4(d).
‘‘(B) In the administration of section 5(d) and subsection (g)(2)
of this section, the Secretary of the Treasury may transmit the
required report with respect to the Treasury Inspector General
for Tax Administration at an appropriate time as determined by
the Secretary, if the problem, abuse, or deficiency relates to—
‘‘(i) the performance of a law enforcement function under
paragraph (1); and
‘‘(ii) sensitive information concerning matters under sub-
section (a)(1)(A) through (F).
‘‘(3) Nothing in this subsection shall be construed to affect
the authority of any other person to carry out or enforce any
provision specified in paragraph (1).
‘‘(l)(1) The Commissioner of Internal Revenue or the Internal
Revenue Service Oversight Board may request, in writing, the
Treasury Inspector General for Tax Administration to conduct an
audit or investigation relating to the Internal Revenue Service.
If the Treasury Inspector General for Tax Administration deter-
mines not to conduct such audit or investigation, the Inspector
General shall timely provide a written explanation for such deter-
mination to the person making the request.
Reports. ‘‘(2)(A) Any final report of an audit conducted by the Treasury
Inspector General for Tax Administration shall be timely submitted
by the Inspector General to the Commissioner of Internal Revenue
and the Internal Revenue Service Oversight Board.
Records. ‘‘(B) The Treasury Inspector General for Tax Administration
shall periodically submit to the Commissioner and Board a list
of investigations for which a final report has been completed by
the Inspector General and shall provide a copy of any such report
upon request of the Commissioner or Board.
Applicability. ‘‘(C) This paragraph applies regardless of whether the
applicable audit or investigation is requested under paragraph (1).’’.
(c) TRANSFER OF FUNCTIONS.—
(1) IN GENERAL.—Section 9(a)(1) of the Inspector General
Act of 1978 (5 U.S.C. App.) is amended in subparagraph (L)—
(A) by inserting ‘‘(i)’’ after ‘‘(L)’’;
(B) by inserting ‘‘and’’ after the semicolon; and
(C) by adding at the end the following new clause:
Effective date. ‘‘(ii) of the Treasury Inspector General for Tax
Administration, effective 180 days after the date of
the enactment of the Internal Revenue Service
Restructuring and Reform Act of 1998, the Office of
Chief Inspector of the Internal Revenue Service;’’.
Effective date. (2) TERMINATION OF OFFICE OF CHIEF INSPECTOR.—Effective
5 USC app. upon the transfer of functions under the amendment made
by paragraph (1), the Office of Chief Inspector of the Internal
Revenue Service is terminated.
5 USC app. (3) RETENTION OF CERTAIN INTERNAL AUDIT PERSONNEL.—
In making the transfer under the amendment made by para-
graph (1), the Commissioner of Internal Revenue shall des-
ignate and retain an appropriate number (not in excess of
300) of internal audit full-time equivalent employee positions
necessary for management relating to the Internal Revenue
Service.
Effective date. (4) ADDITIONAL PERSONNEL TRANSFERS.—Effective 180 days
5 USC app. after the date of the enactment of this Act, the Secretary
of the Treasury shall transfer 21 full-time equivalent positions

from the Office of the Inspector General of the Department
of the Treasury to the Office of the Treasury Inspector General
for Tax Administration.
(d) AUDITS AND REPORTS OF AGENCY FINANCIAL STATEMENTS.— 31 USC 3521
Subject to section 3521(g) of title 31, United States Code— note.
(1) the Inspector General of the Department of the Treasury
shall, subject to paragraph (2)—
(A) audit each financial statement in accordance with
section 3521(e) of such title; and
(B) prepare and submit each report required under
section 3521(f ) of such title; and
(2) the Treasury Inspector General for Tax Administration
shall—
(A) audit that portion of each financial statement
referred to under paragraph (1)(A) that relates to custodial
and administrative accounts of the Internal Revenue
Service; and
(B) prepare that portion of each report referred to
under paragraph (1)(B) that relates to custodial and
administrative accounts of the Internal Revenue Service.
(e) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) TRANSFER OF FUNCTIONS.—Section 8D(b) of the Inspec-
tor General Act of 1978 (5 U.S.C. App.) is amended by striking
‘‘and the internal audits and internal investigations performed
by the Office of Assistant Commissioner (Inspection) of the
Internal Revenue Service’’.
(2) AMENDMENTS RELATING TO REFERENCES TO THE INSPEC-
TOR GENERAL OF THE DEPARTMENT OF THE TREASURY.—
(A) LIMITATION ON AUTHORITY.—Section 8D(a) of the
Inspector General Act of 1978 (5 U.S.C. App.) is amended—
(i) in the first sentence of paragraph (1), by insert-
ing ‘‘of the Department of the Treasury’’ after ‘‘Inspec-
tor General’’;
(ii) in paragraph (2), by inserting ‘‘of the Depart-
ment of the Treasury’’ after ‘‘prohibit the Inspector
General’’; and
(iii) in paragraph (3)—
(I) in the first sentence, by inserting ‘‘of the
Department of the Treasury’’ after ‘‘notify the
Inspector General’’; and
(II) in the second sentence, by inserting ‘‘of
the Department of the Treasury’’ after ‘‘notice, the
Inspector General’’.
(B) DUTIES.—Section 8D(b) of such Act is amended
in the second sentence by inserting ‘‘of the Department
of the Treasury’’ after ‘‘Inspector General’’.
(C) AUDITS AND INVESTIGATIONS.—Section 8D (c) and
(d) of such Act are amended by inserting ‘‘of the Depart-
ment of the Treasury’’ after ‘‘Inspector General’’ each place
it appears.
(3) REFERENCES.—The second section 8G of the Inspector
General Act of 1978 (relating to rule of construction of special
provisions) is amended—
(A) by striking ‘‘SEC. 8G’’ and inserting ‘‘SEC. 8H’’;
(B) by striking ‘‘or 8E’’ and inserting ‘‘8E or 8F’’; and
(C) by striking ‘‘section 8F(a)’’ and inserting ‘‘section

8G(a)’’.
(4) AMENDMENT TO INTERNAL REVENUE CODE OF 1986.—
Section 7608(b)(1) is amended by striking ‘‘or of the Internal
Security Division’’.
SEC. 1104. OTHER PERSONNEL.
(a) IN GENERAL.—Section 7804 (relating to the effect of reorga-
nization plans) is amended to read as follows:
‘‘SEC. 7804. OTHER PERSONNEL.
‘‘(a) APPOINTMENT AND SUPERVISION.—Unless otherwise pre-
scribed by the Secretary, the Commissioner of Internal Revenue
is authorized to employ such number of persons as the Commis-
sioner deems proper for the administration and enforcement of
the internal revenue laws, and the Commissioner shall issue all
necessary directions, instructions, orders, and rules applicable to
such persons.
‘‘(b) POSTS OF DUTY OF EMPLOYEES IN FIELD SERVICE OR
TRAVELING.—Unless otherwise prescribed by the Secretary—
‘‘(1) DESIGNATION OF POST OF DUTY.—The Commissioner
shall determine and designate the posts of duty of all such
persons engaged in field work or traveling on official business
outside of the District of Columbia.
‘‘(2) DETAIL OF PERSONNEL FROM FIELD SERVICE.—The
Commissioner may order any such person engaged in field
work to duty in the District of Columbia, for such periods
as the Commissioner may prescribe, and to any designated
post of duty outside the District of Columbia upon the comple-
tion of such duty.
‘‘(c) DELINQUENT INTERNAL REVENUE OFFICERS AND EMPLOY-
EES.—If any officer or employee of the Treasury Department acting
in connection with the internal revenue laws fails to account for
and pay over any amount of money or property collected or received
by him in connection with the internal revenue laws, the Secretary
shall issue notice and demand to such officer or employee for
payment of the amount which he failed to account for and pay
over, and, upon failure to pay the amount demanded within the
time specified in such notice, the amount so demanded shall be
deemed imposed upon such officer or employee and assessed upon
the date of such notice and demand, and the provisions of chapter
64 and all other provisions of law relating to the collection of
assessed taxes shall be applicable in respect of such amount.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (b) of section 6344 is amended by striking
‘‘section 7803(d)’’ and inserting ‘‘section 7804(c)’’.
‘‘Sec. 7804. Other personnel.’’.
26 USC 7804 (c) EFFECTIVE DATE.—The amendments made by this section
note. shall take effect on the date of the enactment of this Act.
SEC. 1105. PROHIBITION ON EXECUTIVE BRANCH INFLUENCE OVER
TAXPAYER AUDITS AND OTHER INVESTIGATIONS.
(a) IN GENERAL.—Part I of subchapter A of chapter 75 (relating
to crimes, other offenses, and forfeitures) is amended by adding
after section 7216 the following new section:
‘‘SEC. 7217. PROHIBITION ON EXECUTIVE BRANCH INFLUENCE OVER
TAXPAYER AUDITS AND OTHER INVESTIGATIONS.
‘‘(a) PROHIBITION.—It shall be unlawful for any applicable per-
son to request, directly or indirectly, any officer or employee of
the Internal Revenue Service to conduct or terminate an audit
or other investigation of any particular taxpayer with respect to
the tax liability of such taxpayer.
‘‘(b) REPORTING REQUIREMENT.—Any officer or employee of the
Internal Revenue Service receiving any request prohibited by sub-
section (a) shall report the receipt of such request to the Treasury
Inspector General for Tax Administration.
‘‘(c) EXCEPTIONS.—Subsection (a) shall not apply to any written
request made—
‘‘(1) to an applicable person by or on behalf of the taxpayer
and forwarded by such applicable person to the Internal Reve-
nue Service;
‘‘(2) by an applicable person for disclosure of return or
return information under section 6103 if such request is made
in accordance with the requirements of such section; or
‘‘(3) by the Secretary of the Treasury as a consequence
of the implementation of a change in tax policy.
‘‘(d) PENALTY.—Any person who willfully violates subsection
(a) or fails to report under subsection (b) shall be punished upon
conviction by a fine in any amount not exceeding $5,000, or impris-
onment of not more than 5 years, or both, together with the costs
of prosecution.
‘‘(e) APPLICABLE PERSON.—For purposes of this section, the
term ‘applicable person’ means—
‘‘(1) the President, the Vice President, any employee of
the executive office of the President, and any employee of
the executive office of the Vice President; and
‘‘(2) any individual (other than the Attorney General of
the United States) serving in a position specified in section
5312 of title 5, United States Code.’’.
(b) CLERICAL AMENDMENT.—The table of sections for part I
of subchapter A of chapter 75 is amended by adding after the
item relating to section 7216 the following new item:
‘‘Sec. 7217. Prohibition on executive branch influence over taxpayer audits
and other investigations.’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 7217
shall apply to requests made after the date of the enactment of note.
this Act.
Subtitle C—Personnel Flexibilities

SEC. 1201. IMPROVEMENTS IN PERSONNEL FLEXIBILITIES.
(a) IN GENERAL.—Part III of title 5, United States Code, is
amended by adding at the end the following new subpart:
‘‘Subpart I—Miscellaneous
‘‘CHAPTER 95—PERSONNEL FLEXIBILITIES RELATING
TO THE INTERNAL REVENUE SERVICE
‘‘Sec.
‘‘9501. Internal Revenue Service personnel flexibilities.
‘‘9502. Pay authority for critical positions.
‘‘9503. Streamlined critical pay authority.
‘‘9504. Recruitment, retention, relocation incentives, and relocation expenses.
‘‘9505. Performance awards for senior executives.
‘‘9506. Limited appointments to career reserved Senior Executive Service positions.
‘‘9507. Streamlined demonstration project authority.
‘‘9508. General workforce performance management system.
‘‘9509. General workforce classification and pay.
‘‘9510. General workforce staffing.
‘‘§ 9501. Internal Revenue Service personnel flexibilities
‘‘(a) Any flexibilities provided by sections 9502 through 9510
of this chapter shall be exercised in a manner consistent with—
‘‘(1) chapter 23 (relating to merit system principles and
prohibited personnel practices);
‘‘(2) provisions relating to preference eligibles;
‘‘(3) except as otherwise specifically provided, section 5307
(relating to the aggregate limitation on pay);
‘‘(4) except as otherwise specifically provided, chapter 71
(relating to labor-management relations); and
‘‘(5) subject to subsections (b) and (c) of section 1104, as
though such authorities were delegated to the Secretary of
the Treasury under section 1104(a)(2).
‘‘(b) The Secretary of the Treasury shall provide the Office
of Personnel Management with any information that Office requires
in carrying out its responsibilities under this section.
‘‘(c) Employees within a unit to which a labor organization
is accorded exclusive recognition under chapter 71 shall not be
subject to any flexibility provided by sections 9507 through 9510
of this chapter unless the exclusive representative and the Internal
Revenue Service have entered into a written agreement which
specifically provides for the exercise of that flexibility. Such written
agreement may be imposed by the Federal Services Impasses Panel
under section 7119.
‘‘§ 9502. Pay authority for critical positions
‘‘(a) When the Secretary of the Treasury seeks a grant of
authority under section 5377 for critical pay for 1 or more positions
at the Internal Revenue Service, the Office of Management and
Budget may fix the rate of basic pay, notwithstanding sections
5377(d)(2) and 5307, at any rate up to the salary set in accordance
with section 104 of title 3.
‘‘(b) Notwithstanding section 5307, no allowance, differential,
bonus, award, or similar cash payment may be paid to any employee
receiving critical pay at a rate fixed under subsection (a), in any
calendar year if, or to the extent that, the employee’s total annual
compensation will exceed the maximum amount of total annual
compensation payable at the salary set in accordance with section
104 of title 3.
‘‘§ 9503. Streamlined critical pay authority
‘‘(a) Notwithstanding section 9502, and without regard to the
provisions of this title governing appointments in the competitive
service or the Senior Executive Service and chapters 51 and 53

(relating to classification and pay rates), the Secretary of the Treas-
ury may, for a period of 10 years after the date of enactment
of this section, establish, fix the compensation of, and appoint
individuals to, designated critical administrative, technical, and
professional positions needed to carry out the functions of the
Internal Revenue Service, if—
‘‘(1) the positions—
‘‘(A) require expertise of an extremely high level in
an administrative, technical, or professional field; and
‘‘(B) are critical to the Internal Revenue Service’s
successful accomplishment of an important mission;
‘‘(2) exercise of the authority is necessary to recruit or
retain an individual exceptionally well qualified for the position;
‘‘(3) the number of such positions does not exceed 40 at
any one time;
‘‘(4) designation of such positions are approved by the
Secretary of the Treasury;
‘‘(5) the terms of such appointments are limited to no
more than 4 years;
‘‘(6) appointees to such positions were not Internal Revenue
Service employees prior to June 1, 1998;
‘‘(7) total annual compensation for any appointee to such
positions does not exceed the highest total annual compensation
payable at the rate determined under section 104 of title 3;
and
‘‘(8) all such positions are excluded from the collective
bargaining unit.
‘‘(b) Individuals appointed under this section shall not be consid-
ered to be employees for purposes of subchapter II of chapter
75.
‘‘§ 9504. Recruitment, retention, relocation incentives, and
relocation expenses
‘‘(a) For a period of 10 years after the date of enactment
of this section and subject to approval by the Office of Personnel
Management, the Secretary of the Treasury may provide for vari-
ations from sections 5753 and 5754 governing payment of recruit-
ment, relocation, and retention incentives.
‘‘(b) For a period of 10 years after the date of enactment
of this section, the Secretary of the Treasury may pay from appro-
priations made to the Internal Revenue Service allowable relocation
expenses under section 5724a for employees transferred or
reemployed and allowable travel and transportation expenses under
section 5723 for new appointees, for any new appointee appointed
to a position for which pay is fixed under section 9502 or 9503
after June 1, 1998.
‘‘§ 9505. Performance awards for senior executives
‘‘(a) For a period of 10 years after the date of enactment
of this section, Internal Revenue Service senior executives who
have program management responsibility over significant functions
of the Internal Revenue Service may be paid a performance bonus
without regard to the limitation in section 5384(b)(2) if the Secretary
of the Treasury finds such award warranted based on the executive’s
performance.
‘‘(b) In evaluating an executive’s performance for purposes of

an award under this section, the Secretary of the Treasury shall
take into account the executive’s contributions toward the successful
accomplishment of goals and objectives established under the
Government Performance and Results Act of 1993, division E of
the Clinger-Cohen Act of 1996 (Public Law 104–106; 110 Stat.
679), Revenue Procedure 64–22 (as in effect on July 30, 1997),
taxpayer service surveys, and other performance metrics or plans
established in consultation with the Internal Revenue Service Over-
sight Board.
‘‘(c) Any award in excess of 20 percent of an executive’s rate
of basic pay shall be approved by the Secretary of the Treasury.
‘‘(d) Notwithstanding section 5384(b)(3), the Secretary of the
Treasury shall determine the aggregate amount of performance
awards available to be paid during any fiscal year under this
section and section 5384 to career senior executives in the Internal
Revenue Service. Such amount may not exceed an amount equal
to 5 percent of the aggregate amount of basic pay paid to career
senior executives in the Internal Revenue Service during the preced-
ing fiscal year. The Internal Revenue Service shall not be included
in the determination under section 5384(b)(3) of the aggregate
amount of performance awards payable to career senior executives
in the Department of the Treasury other than the Internal Revenue
Service.
‘‘(e) Notwithstanding section 5307, a performance bonus award
may not be paid to an executive in a calendar year if, or to the
extent that, the executive’s total annual compensation will exceed
the maximum amount of total annual compensation payable at
the rate determined under section 104 of title 3.
‘‘§ 9506. Limited appointments to career reserved Senior
Executive Service positions
‘‘(a) In the application of section 3132, a ‘career reserved posi-
tion’ in the Internal Revenue Service means a position designated
under section 3132(b) which may be filled only by—
‘‘(1) a career appointee; or
‘‘(2) a limited emergency appointee or a limited term
appointee—
‘‘(A) who, immediately upon entering the career
reserved position, was serving under a career or career-
conditional appointment outside the Senior Executive
Service; or
‘‘(B) whose limited emergency or limited term appoint-
ment is approved in advance by the Office of Personnel
Management.
‘‘(b)(1) The number of positions described under subsection (a)
which are filled by an appointee as described under paragraph
(2) of such subsection may not exceed 10 percent of the total
number of Senior Executive Service positions in the Internal Reve-
nue Service.
‘‘(2) Notwithstanding section 3132—
‘‘(A) the term of an appointee described under subsection
(a)(2) may be for any period not to exceed 3 years; and
‘‘(B) such an appointee may serve—
‘‘(i) two such terms; or
‘‘(ii) two such terms in addition to any unexpired term
applicable at the time of appointment.
‘‘§ 9507. Streamlined demonstration project authority

‘‘(a) The exercise of any of the flexibilities under sections 9502
through 9510 shall not affect the authority of the Secretary of
the Treasury to implement for the Internal Revenue Service a
demonstration project subject to chapter 47, as provided in sub-
section (b).
‘‘(b) In applying section 4703 to a demonstration project
described in section 4701(a)(4) which involves the Internal Revenue
Service—
‘‘(1) section 4703(b)(1) shall be deemed to read as follows:
‘‘ ‘(1) develop a plan for such project which describes its
purpose, the employees to be covered, the project itself, its
anticipated outcomes, and the method of evaluating the
project;’;
‘‘(2) section 4703(b)(3) shall not apply;
‘‘(3) the 180-day notification period in section 4703(b)(4)
shall be deemed to be a notification period of 30 days;
‘‘(4) section 4703(b)(6) shall be deemed to read as follows:
‘‘ ‘(6) provides each House of Congress with the final version
of the plan.’;
‘‘(5) section 4703(c)(1) shall be deemed to read as follows:
‘‘ ‘(1) subchapter V of chapter 63 or subpart G of part
III of this title;’;
‘‘(6) the requirements of paragraphs (1)(A) and (2) of section
4703(d) shall not apply; and
‘‘(7) notwithstanding section 4703(d)(1)(B), based on an
evaluation as provided in section 4703(h), the Office of Person-
nel Management and the Secretary of the Treasury, except
as otherwise provided by this subsection, may waive the termi-
nation date of a demonstration project under section 4703(d).
‘‘(c) At least 90 days before waiving the termination date under Deadline.
subsection (b)(7), the Office of Personnel Management shall publish Federal Register,
publication.
in the Federal Register a notice of its intention to waive the termi-
nation date and shall inform in writing both Houses of Congress
of its intention.
‘‘§ 9508. General workforce performance management system
‘‘(a) In lieu of a performance appraisal system established under
section 4302, the Secretary of the Treasury shall, within 1 year
after the date of enactment of this section, establish for the Internal
Revenue Service a performance management system that—
‘‘(1) maintains individual accountability by—
‘‘(A) establishing one or more retention standards for
each employee related to the work of the employee and
expressed in terms of individual performance, and commu-
nicating such retention standards to employees;
‘‘(B) making periodic determinations of whether each
employee meets or does not meet the employee’s established
retention standards; and
‘‘(C) taking actions, in accordance with applicable laws
and regulations, with respect to any employee whose
performance does not meet established retention standards,
including denying any increases in basic pay, promotions,
and credit for performance under section 3502, and taking
one or more of the following actions:
‘‘(i) Reassignment.
‘‘(ii) An action under chapter 43 or chapter 75

of this title.
‘‘(iii) Any other appropriate action to resolve the
performance problem; and
‘‘(2) except as provided under section 1204 of the Internal
Revenue Service Restructuring and Reform Act of 1998,
strengthens the system’s effectiveness by—
‘‘(A) establishing goals or objectives for individual,
group, or organizational performance (or any combination
thereof ), consistent with the Internal Revenue Service’s
performance planning procedures, including those estab-
lished under the Government Performance and Results
Act of 1993, division E of the Clinger-Cohen Act of 1996
(Public Law 104–106; 110 Stat. 679), Revenue Procedure
64–22 (as in effect on July 30, 1997), and taxpayer service
surveys, and communicating such goals or objectives to
employees;
‘‘(B) using such goals and objectives to make perform-
ance distinctions among employees or groups of employees;
and
‘‘(C) using performance assessments as a basis for
granting employee awards, adjusting an employee’s rate
of basic pay, and other appropriate personnel actions, in
accordance with applicable laws and regulations.
‘‘(b)(1) For purposes of subsection (a)(2), the term ‘performance
assessment’ means a determination of whether or not retention
standards established under subsection (a)(1)(A) are met, and any
additional performance determination made on the basis of perform-
ance goals and objectives established under subsection (a)(2)(A).
‘‘(2) For purposes of this title, the term ‘unacceptable perform-
ance’ with respect to an employee of the Internal Revenue Service
covered by a performance management system established under
this section means performance of the employee which fails to
meet a retention standard established under this section.
‘‘(c)(1) The Secretary of the Treasury may establish an awards
program designed to provide incentives for and recognition of
organizational, group, and individual achievements by providing
for granting awards to employees who, as individuals or members
of a group, contribute to meeting the performance goals and objec-
tives established under this chapter by such means as a superior
individual or group accomplishment, a documented productivity
gain, or sustained superior performance.
‘‘(2) A cash award under subchapter I of chapter 45 may be
granted to an employee of the Internal Revenue Service without
the need for any approval under section 4502(b).
‘‘(d)(1) In applying sections 4303(b)(1)(A) and 7513(b)(1) to
employees of the Internal Revenue Service, ‘30 days’ may be deemed
to be ‘15 days’.
‘‘(2) Notwithstanding the second sentence of section 5335(c),
an employee of the Internal Revenue Service shall not have a
right to appeal the denial of a periodic step increase under section
5335 to the Merit Systems Protection Board.
‘‘§ 9509. General workforce classification and pay
‘‘(a) For purposes of this section, the term ‘broad-banded system’
means a system for grouping positions for pay, job evaluation,
and other purposes that is different from the system established
under chapter 51 and subchapter III of chapter 53 as a result

of combining grades and related ranges of rates of pay in one
or more occupational series.
‘‘(b)(1)(A) The Secretary of the Treasury may, subject to criteria Regulations.
to be prescribed by the Office of Personnel Management, establish
one or more broad-banded systems covering all or any portion
of the Internal Revenue Service workforce.
‘‘(B) With the approval of the Office of Personnel Management,
a broad-banded system established under this section may either
include or consist of positions that otherwise would be subject
to subchapter IV of chapter 53 or section 5376.
‘‘(2) The Office of Personnel Management may require the
Secretary of the Treasury to submit information relating to broad-
banded systems at the Internal Revenue Service.
‘‘(3) Except as otherwise provided under this section, employees
under a broad-banded system shall continue to be subject to the
laws and regulations covering employees under the pay system
that otherwise would apply to such employees.
‘‘(4) The criteria to be prescribed by the Office of Personnel Regulations.
Management shall, at a minimum—
‘‘(A) ensure that the structure of any broad-banded system
maintains the principle of equal pay for substantially equal
work;
‘‘(B) establish the minimum and maximum number of
grades that may be combined into pay bands;
‘‘(C) establish requirements for setting minimum and maxi-
mum rates of pay in a pay band;
‘‘(D) establish requirements for adjusting the pay of an
employee within a pay band;
‘‘(E) establish requirements for setting the pay of a super-
visory employee whose position is in a pay band or who super-
vises employees whose positions are in pay bands; and
‘‘(F) establish requirements and methodologies for setting
the pay of an employee upon conversion to a broad-banded
system, initial appointment, change of position or type of
appointment (including promotion, demotion, transfer, reassign-
ment, reinstatement, placement in another pay band, or move-
ment to a different geographic location), and movement between
a broad-banded system and another pay system.
‘‘(c) With the approval of the Office of Personnel Management
and in accordance with a plan for implementation submitted by
the Secretary of the Treasury, the Secretary may, with respect
to Internal Revenue Service employees who are covered by a broad-
banded system established under this section, provide for variations
from the provisions of subchapter VI of chapter 53.
‘‘§ 9510. General workforce staffing
‘‘(a)(1) Except as otherwise provided by this section, an
employee of the Internal Revenue Service may be selected for a
permanent appointment in the competitive service in the Internal
Revenue Service through internal competitive promotion procedures
if—
‘‘(A) the employee has completed, in the competitive service,
2 years of current continuous service under a term appointment
or any combination of term appointments;
‘‘(B) such term appointment or appointments were made

under competitive procedures prescribed for permanent
appointments;
‘‘(C) the employee’s performance under such term appoint-
ment or appointments met established retention standards,
or, if not covered by a performance management system estab-
lished under section 9508, was rated at the fully successful
level or higher (or equivalent thereof ); and
‘‘(D) the vacancy announcement for the term appointment
from which the conversion is made stated that there was a
potential for subsequent conversion to a permanent appoint-
ment.
‘‘(2) An appointment under this section may be made only
to a position in the same line of work as a position to which
the employee received a term appointment under competitive proce-
dures.
‘‘(b)(1) Notwithstanding subchapter I of chapter 33, the Sec-
retary of the Treasury may establish category rating systems for
evaluating applicants for Internal Revenue Service positions in
the competitive service under which qualified candidates are divided
into two or more quality categories on the basis of relative degrees
of merit, rather than assigned individual numerical ratings.
‘‘(2) Each applicant who meets the minimum qualification
requirements for the position to be filled shall be assigned to an
appropriate category based on an evaluation of the applicant’s
knowledge, skills, and abilities relative to those needed for success-
ful performance in the position to be filled.
‘‘(3) Within each quality category established under paragraph
(1), preference eligibles shall be listed ahead of individuals who
are not preference eligibles. For other than scientific and profes-
sional positions at or higher than GS–9 (or equivalent), preference
eligibles who have a compensable service-connected disability of
10 percent or more, and who meet the minimum qualification
standards, shall be listed in the highest quality category.
‘‘(4) An appointing authority may select any applicant from
the highest quality category or, if fewer than three candidates
have been assigned to the highest quality category, from a merged
category consisting of the highest and second highest quality cat-
egories.
‘‘(5) Notwithstanding paragraph (4), the appointing authority
may not pass over a preference eligible in the same or higher
category from which selection is made unless the requirements
of section 3317(b) or 3318(b), as applicable, are satisfied.
‘‘(c) The Secretary of the Treasury may detail employees among
the offices of the Internal Revenue Service without regard to the
120-day limitation in section 3341(b).
‘‘(d) Notwithstanding any other provision of law, the Secretary
of the Treasury may establish a probationary period under section
3321 of up to 3 years for Internal Revenue Service positions if
the Secretary of the Treasury determines that the nature of the
work is such that a shorter period is insufficient to demonstrate
complete proficiency in the position.
‘‘(e) Nothing in this section exempts the Secretary of the
Treasury from—
‘‘(1) any employment priority established under direction
of the President for the placement of surplus or displaced
employees; or
‘‘(2) any obligation under a court order or decree relating

to the employment practices of the Internal Revenue Service
or the Department of the Treasury.’’.
(b) CLERICAL AMENDMENT.—The table of sections for part III
of title 5, United States Code, is amended by adding at the end
the following new items:
‘‘Subpart I—Miscellaneous
‘‘95. Personnel flexibilities relating to the Internal Revenue Service 9501’’.
SEC. 1202. VOLUNTARY SEPARATION INCENTIVE PAYMENTS. 5 USC 5597 note.
(a) DEFINITION.—In this section, the term ‘‘employee’’ means
an employee (as defined by section 2105 of title 5, United States
Code) who is employed by the Internal Revenue Service serving
under an appointment without time limitation, and has been cur-
rently employed for a continuous period of at least 3 years, but
does not include—
(1) a reemployed annuitant under subchapter III of chapter
83 or chapter 84 of title 5, United States Code, or another
retirement system;
(2) an employee having a disability on the basis of which
such employee is or would be eligible for disability retirement
under the applicable retirement system referred to in paragraph
(1);
(3) an employee who is in receipt of a specific notice of
involuntary separation for misconduct or unacceptable perform-
ance;
(4) an employee who, upon completing an additional period
of service as referred to in section 3(b)(2)(B)(ii) of the Federal
Workforce Restructuring Act of 1994 (5 U.S.C. 5597 note),
would qualify for a voluntary separation incentive payment
under section 3 of such Act;
(5) an employee who has previously received any voluntary
separation incentive payment by the Federal Government under
this section or any other authority and has not repaid such
payment;
(6) an employee covered by statutory reemployment rights
who is on transfer to another organization; or
(7) any employee who, during the 24-month period preced-
ing the date of separation, has received a recruitment or reloca-
tion bonus under section 5753 of title 5, United States Code,
or who, within the 12-month period preceding the date of sepa-
ration, received a retention allowance under section 5754 of
title 5, United States Code.
(b) AUTHORITY TO PROVIDE VOLUNTARY SEPARATION INCENTIVE
PAYMENTS.—
(1) IN GENERAL.—The Commissioner of Internal Revenue
may pay voluntary separation incentive payments under this
section to any employee to the extent necessary to carry out
the plan to reorganize the Internal Revenue Service under
section 1001.
(2) AMOUNT AND TREATMENT OF PAYMENTS.—A voluntary
separation incentive payment—
(A) shall be paid in a lump sum after the employee’s
separation;
(B) shall be paid from appropriations or funds available
for the payment of the basic pay of the employees;
(C) shall be equal to the lesser of—
(i) an amount equal to the amount the employee

would be entitled to receive under section 5595(c) of
title 5, United States Code; or
(ii) an amount determined by an agency head not
to exceed $25,000;
(D) may not be made except in the case of any qualify-
ing employee who voluntarily separates (whether by retire-
ment or resignation) before January 1, 2003;
(E) shall not be a basis for payment, and shall not
be included in the computation, of any other type of Govern-
ment benefit; and
(F) shall not be taken into account in determining
the amount of any severance pay to which the employee
may be entitled under section 5595 of title 5, United States
Code, based on any other separation.
(c) ADDITIONAL INTERNAL REVENUE SERVICE CONTRIBUTIONS
TO THE RETIREMENT FUND.—
(1) IN GENERAL.—In addition to any other payments which
it is required to make under subchapter III of chapter 83
of title 5, United States Code, the Internal Revenue Service
shall remit to the Office of Personnel Management for deposit
in the Treasury of the United States to the credit of the Civil
Service Retirement and Disability Fund an amount equal to
15 percent of the final basic pay of each employee who is
covered under subchapter III of chapter 83 or chapter 84 of
title 5, United States Code, to whom a voluntary separation
incentive has been paid under this section.
(2) DEFINITION.—In paragraph (1), the term ‘‘final basic
pay’’, with respect to an employee, means the total amount
of basic pay which would be payable for a year of service
by such employee, computed using the employee’s final rate
of basic pay, and, if last serving on other than a full-time
basis, with appropriate adjustment therefor.
(d) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERN-
MENT.—An individual who has received a voluntary separation
incentive payment under this section and accepts any employment
for compensation with the Government of the United States, or
who works for any agency of the United States Government through
a personal services contract, within 5 years after the date of the
separation on which the payment is based shall be required to
pay, prior to the individual’s first day of employment, the entire
amount of the incentive payment to the Internal Revenue Service.
(e) EFFECT ON INTERNAL REVENUE SERVICE EMPLOYMENT
LEVELS.—
(1) INTENDED EFFECT.—Voluntary separations under this
section are not intended to necessarily reduce the total number
of full-time equivalent positions in the Internal Revenue Serv-
ice.
(2) USE OF VOLUNTARY SEPARATIONS.—The Internal Reve-
nue Service may redeploy or use the full-time equivalent posi-
tions vacated by voluntary separations under this section to
make other positions available to more critical locations or
more critical occupations.
26 USC 7804 SEC. 1203. TERMINATION OF EMPLOYMENT FOR MISCONDUCT.
note.
(a) IN GENERAL.—Subject to subsection (c), the Commissioner
of Internal Revenue shall terminate the employment of any
employee of the Internal Revenue Service if there is a final adminis-

trative or judicial determination that such employee committed
any act or omission described under subsection (b) in the perform-
ance of the employee’s official duties. Such termination shall be
a removal for cause on charges of misconduct.
(b) ACTS OR OMISSIONS.—The acts or omissions referred to
under subsection (a) are—
(1) willful failure to obtain the required approval signatures
on documents authorizing the seizure of a taxpayer’s home,
personal belongings, or business assets;
(2) providing a false statement under oath with respect
to a material matter involving a taxpayer or taxpayer represent-
ative;
(3) with respect to a taxpayer, taxpayer representative,
or other employee of the Internal Revenue Service, the violation
of—
(A) any right under the Constitution of the United
States; or
(B) any civil right established under—
(i) title VI or VII of the Civil Rights Act of 1964;
(ii) title IX of the Education Amendments of 1972;
(iii) the Age Discrimination in Employment Act
of 1967;
(iv) the Age Discrimination Act of 1975;
(v) section 501 or 504 of the Rehabilitation Act
of 1973; or
(vi) title I of the Americans with Disabilities Act
of 1990;
(4) falsifying or destroying documents to conceal mistakes
made by any employee with respect to a matter involving
a taxpayer or taxpayer representative;
(5) assault or battery on a taxpayer, taxpayer representa-
tive, or other employee of the Internal Revenue Service, but
only if there is a criminal conviction, or a final judgment
by a court in a civil case, with respect to the assault or battery;
(6) violations of the Internal Revenue Code of 1986, Depart-
ment of Treasury regulations, or policies of the Internal Reve-
nue Service (including the Internal Revenue Manual) for the
purpose of retaliating against, or harassing, a taxpayer, tax-
payer representative, or other employee of the Internal Revenue
Service;
(7) willful misuse of the provisions of section 6103 of the
Internal Revenue Code of 1986 for the purpose of concealing
information from a congressional inquiry;
(8) willful failure to file any return of tax required under
the Internal Revenue Code of 1986 on or before the date pre-
scribed therefor (including any extensions), unless such failure
is due to reasonable cause and not to willful neglect;
(9) willful understatement of Federal tax liability, unless
such understatement is due to reasonable cause and not to
willful neglect; and
(10) threatening to audit a taxpayer for the purpose of
extracting personal gain or benefit.
(c) DETERMINATION OF COMMISSIONER.—
(1) IN GENERAL.—The Commissioner of Internal Revenue
may take a personnel action other than termination for an
act or omission under subsection (a).
(2) DISCRETION.—The exercise of authority under para-

graph (1) shall be at the sole discretion of the Commissioner
of Internal Revenue and may not be delegated to any other
officer. The Commissioner of Internal Revenue, in his sole
discretion, may establish a procedure which will be used to
determine whether an individual should be referred to the
Commissioner of Internal Revenue for a determination by the
Commissioner under paragraph (1).
(3) NO APPEAL.—Any determination of the Commissioner
of Internal Revenue under this subsection may not be appealed
in any administrative or judicial proceeding.
(d) DEFINITION.—For purposes of the provisions described in
clauses (i), (ii), and (iv) of subsection (b)(3)(B), references to a
program or activity receiving Federal financial assistance or an
education program or activity receiving Federal financial assistance
shall include any program or activity conducted by the Internal
Revenue Service for a taxpayer.
26 USC 7804 SEC. 1204. BASIS FOR EVALUATION OF INTERNAL REVENUE SERVICE
note. EMPLOYEES.
(a) IN GENERAL.—The Internal Revenue Service shall not use
records of tax enforcement results—
(1) to evaluate employees; or
(2) to impose or suggest production quotas or goals with
respect to such employees.
(b) TAXPAYER SERVICE.—The Internal Revenue Service shall
use the fair and equitable treatment of taxpayers by employees
as one of the standards for evaluating employee performance.
(c) CERTIFICATION.—Each appropriate supervisor shall certify
quarterly by letter to the Commissioner of Internal Revenue
whether or not tax enforcement results are being used in a manner
prohibited by subsection (a).
(d) TECHNICAL AND CONFORMING AMENDMENT.—Section 6231
of the Technical and Miscellaneous Revenue Act of 1988 (Public
26 USC 7803 Law 100–647; 102 Stat. 3734) is repealed.
note. (e) EFFECTIVE DATE.—This section shall apply to evaluations
Applicability. conducted on or after the date of the enactment of this Act.
26 USC 7804. SEC. 1205. EMPLOYEE TRAINING PROGRAM.
Deadline. (a) IN GENERAL.—Not later than 180 days after the date of
the enactment of this Act, the Commissioner of Internal Revenue
shall implement an employee training program and shall submit
an employee training plan to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House
of Representatives.
(b) CONTENTS.—The plan submitted under subsection (a)
shall—
(1) detail a comprehensive employee training program to
ensure adequate customer service training;
(2) detail a schedule for training and the fiscal years during
which the training will occur;
(3) detail the funding of the program and relevant informa-
tion to demonstrate the priority and commitment of resources
to the plan;
(4) review the organizational design of customer service;
(5) provide for the implementation of a performance
development system; and
(6) provide for at least 16 hours of conflict management

training during fiscal year 1999 for employees conducting collec-
tion activities.
TITLE II—ELECTRONIC FILING

SEC. 2001. ELECTRONIC FILING OF TAX AND INFORMATION RETURNS.
(a) IN GENERAL.—It is the policy of Congress that— 26 USC 6011
(1) paperless filing should be the preferred and most note.
convenient means of filing Federal tax and information returns;
(2) it should be the goal of the Internal Revenue Service
to have at least 80 percent of all such returns filed electronically
by the year 2007; and
(3) the Internal Revenue Service should cooperate with
and encourage the private sector by encouraging competition
to increase electronic filing of such returns.
(b) STRATEGIC PLAN.— 26 USC 6011
(1) IN GENERAL.—Not later than 180 days after the date note.
Deadline.
of the enactment of this Act, the Secretary of the Treasury
or the Secretary’s delegate (hereafter in this section referred
to as the ‘‘Secretary’’) shall establish a plan to eliminate bar-
riers, provide incentives, and use competitive market forces
to increase electronic filing gradually over the next 10 years
while maintaining processing times for paper returns at 40
days. To the extent practicable, such plan shall provide that
all returns prepared electronically for taxable years beginning
after 2001 shall be filed electronically.
(2) ELECTRONIC COMMERCE ADVISORY GROUP.—To ensure
that the Secretary receives input from the private sector in
the development and implementation of the plan required by
paragraph (1), the Secretary shall convene an electronic com-
merce advisory group to include representatives from the small
business community and from the tax practitioner, preparer,
and computerized tax processor communities and other rep-
resentatives from the electronic filing industry.
(c) PROMOTION OF ELECTRONIC FILING AND INCENTIVES.—
Section 6011 is amended by redesignating subsection (f ) as sub-
section (g) and by inserting after subsection (e) the following new
subsection:
‘‘(f ) PROMOTION OF ELECTRONIC FILING.—
‘‘(1) IN GENERAL.—The Secretary is authorized to promote
the benefits of and encourage the use of electronic tax adminis-
tration programs, as they become available, through the use
of mass communications and other means.
‘‘(2) INCENTIVES.—The Secretary may implement proce-
dures to provide for the payment of appropriate incentives
for electronically filed returns.’’.
(d) ANNUAL REPORTS.—Not later than June 30 of each calendar Deadline.
year after 1998, the Chairperson of the Internal Revenue Service 26 USC 6011
note.
Oversight Board, the Secretary of the Treasury, and the Chair-
person of the electronic commerce advisory group established under
subsection (b)(2) shall report to the Committees on Ways and
Means, Appropriations, Government Reform and Oversight, and
Small Business of the House of Representatives and the Committees
on Finance, Appropriations, Governmental Affairs, and Small Busi-
ness of the Senate on—
(1) the progress of the Internal Revenue Service in meeting

the goal of receiving electronically 80 percent of tax and
information returns by 2007;
(2) the status of the plan required by subsection (b);
(3) the legislative changes necessary to assist the Internal
Revenue Service in meeting such goal; and
(4) the effects on small businesses and the self-employed
of electronically filing tax and information returns.
SEC. 2002. DUE DATE FOR CERTAIN INFORMATION RETURNS.
(a) INFORMATION RETURNS FILED ELECTRONICALLY.—Section
6071 (relating to time for filing returns and other documents)
is amended by redesignating subsection (b) as subsection (c) and
by inserting after subsection (a) the following new subsection:
‘‘(b) ELECTRONICALLY FILED INFORMATION RETURNS.—Returns
made under subparts B and C of part III of this subchapter which
are filed electronically shall be filed on or before March 31 of
the year following the calendar year to which such returns relate.’’.
(b) STUDY RELATING TO TIME FOR PROVIDING NOTICE TO
RECIPIENTS.—
(1) IN GENERAL.—The Secretary of the Treasury shall con-
duct a study evaluating the effect of extending the deadline
for providing statements to persons with respect to whom
information is required to be furnished under subparts B and
C of part III of subchapter A of chapter 61 of the Internal
Revenue Code of 1986 (other than section 6051 of such Code)
from January 31 to February 15 of the year in which the
return to which the statement relates is required to be filed.
Deadline. (2) REPORT.—Not later than June 30, 1999, the Secretary
of the Treasury shall submit a report on the study under
paragraph (1) to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of
the Senate.
Applicability. (c) EFFECTIVE DATE.—The amendment made by subsection (a)
26 USC 6071 shall apply to returns required to be filed after December 31,
note.
1999.
SEC. 2003. PAPERLESS ELECTRONIC FILING.
(a) IN GENERAL.—Section 6061 (relating to signing of returns
and other documents) is amended—
(1) by striking ‘‘Except as otherwise provided by’’ and
inserting the following:
‘‘(a) GENERAL RULE.—Except as otherwise provided by sub-
section (b) and’’; and
(2) by adding at the end the following new subsection:
‘‘(b) ELECTRONIC SIGNATURES.—
Procedures. ‘‘(1) IN GENERAL.—The Secretary shall develop procedures
for the acceptance of signatures in digital or other electronic
form. Until such time as such procedures are in place, the
Secretary may—
‘‘(A) waive the requirement of a signature for; or
‘‘(B) provide for alternative methods of signing or
subscribing,
a particular type or class of return, declaration, statement,
or other document required or permitted to be made or written
under internal revenue laws and regulations.
‘‘(2) TREATMENT OF ALTERNATIVE METHODS.—Notwithstand-

ing any other provision of law, any return, declaration, state-
ment, or other document filed and verified, signed, or subscribed
under any method adopted under paragraph (1)(B) shall be
treated for all purposes (both civil and criminal, including pen-
alties for perjury) in the same manner as though signed or
subscribed.
‘‘(3) PUBLISHED GUIDANCE.—The Secretary shall publish
guidance as appropriate to define and implement any waiver
of the signature requirements or any method adopted under
paragraph (1).’’.
(b) ACKNOWLEDGMENT OF ELECTRONIC FILING.—Section 7502(c)
‘‘(c) REGISTERED AND CERTIFIED MAILING; ELECTRONIC
FILING.—
‘‘(1) REGISTERED MAIL.—For purposes of this section, if
any return, claim, statement, or other document, or payment,
is sent by United States registered mail—
‘‘(A) such registration shall be prima facie evidence
that the return, claim, statement, or other document was
delivered to the agency, officer, or office to which addressed;
and
‘‘(B) the date of registration shall be deemed the post-
mark date.
‘‘(2) CERTIFIED MAIL; ELECTRONIC FILING.—The Secretary Regulations.
is authorized to provide by regulations the extent to which
the provisions of paragraph (1) with respect to prima facie
evidence of delivery and the postmark date shall apply to
certified mail and electronic filing.’’.
(c) ESTABLISHMENT OF PROCEDURES FOR OTHER INFORMATION.— 26 USC 6011
In the case of taxable periods beginning after December 31, 1999, note.
the Secretary of the Treasury or the Secretary’s delegate shall,
to the extent practicable, establish procedures to accept, in
electronic form, any other information, statements, elections, or
schedules, from taxpayers filing returns electronically, so that such
taxpayers will not be required to file any paper.
(d) INTERNET AVAILABILITY.—In the case of taxable periods Procedures.
beginning after December 31, 1998, the Secretary of the Treasury 26 USC 7805
note.
or the Secretary’s delegate shall establish procedures for all tax
forms, instructions, and publications created in the most recent
5-year period to be made available electronically on the Internet
in a searchable database at approximately the same time such
records are available to the public in paper form. In addition,
in the case of taxable periods beginning after December 31, 1998,
the Secretary of the Treasury or the Secretary’s delegate shall,
to the extent practicable, establish procedures for other taxpayer
guidance to be made available electronically on the Internet in
a searchable database at approximately the same time such guid-
ance is available to the public in paper form.
(e) PROCEDURES FOR AUTHORIZING DISCLOSURE ELECTRONI- 26 USC 6103
CALLY.—The Secretary shall establish procedures for any taxpayer note.
to authorize, on an electronically filed return, the Secretary to
disclose information under section 6103(c) of the Internal Revenue
Code of 1986 to the preparer of the return.
(f ) EFFECTIVE DATE.—The amendments made by this section 26 USC 6061
shall take effect on the date of the enactment of this Act. note.
26 USC 6012 SEC. 2004. RETURN-FREE TAX SYSTEM.
note.
Procedures. (a) IN GENERAL.—The Secretary of the Treasury or the Sec-
retary’s delegate shall develop procedures for the implementation
of a return-free tax system under which appropriate individuals
would be permitted to comply with the Internal Revenue Code
of 1986 without making the return required under section 6012
of such Code for taxable years beginning after 2007.
Deadline. (b) REPORT.—Not later than June 30 of each calendar year
after 1999, the Secretary shall report to the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate on—
(1) what additional resources the Internal Revenue Service
would need to implement such a system;
(2) the changes to the Internal Revenue Code of 1986
that could enhance the use of such a system;
(3) the procedures developed pursuant to subsection (a);
and
(4) the number and classes of taxpayers that would be
permitted to use the procedures developed pursuant to sub-
section (a).
Deadlines. SEC. 2005. ACCESS TO ACCOUNT INFORMATION.
26 USC 6103
note. (a) IN GENERAL.—Not later than December 31, 2006, the Sec-
Procedures. retary of the Treasury or the Secretary’s delegate shall develop
procedures under which a taxpayer filing returns electronically
(and their designees under section 6103(c) of the Internal Revenue
Code of 1986) would be able to review the taxpayer’s account
electronically, but only if all necessary safeguards to ensure the
privacy of such account information are in place.
(b) REPORT.—Not later than December 31, 2003, the Secretary
of the Treasury shall report on the progress the Secretary is making
on the development of procedures under subsection (a) to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate.
Taxpayer Bill of TITLE III—TAXPAYER PROTECTION AND

Rights 3.
RIGHTS
26 USC 1 note. SEC. 3000. SHORT TITLE.
This title may be cited as the ‘‘Taxpayer Bill of Rights 3’’.
Subtitle A—Burden of Proof

SEC. 3001. BURDEN OF PROOF.
(a) IN GENERAL.—Chapter 76 (relating to judicial proceedings)
is amended by adding at the end the following new subchapter:
‘‘Subchapter E—Burden of Proof

‘‘Sec. 7491. Burden of proof.
‘‘SEC. 7491. BURDEN OF PROOF.
‘‘(a) BURDEN SHIFTS WHERE TAXPAYER PRODUCES CREDIBLE
EVIDENCE.—
‘‘(1) GENERAL RULE.—If, in any court proceeding, a taxpayer

introduces credible evidence with respect to any factual issue
relevant to ascertaining the liability of the taxpayer for any
tax imposed by subtitle A or B, the Secretary shall have the
burden of proof with respect to such issue.
‘‘(2) LIMITATIONS.—Paragraph (1) shall apply with respect Applicability.
to an issue only if—
‘‘(A) the taxpayer has complied with the requirements
under this title to substantiate any item;
‘‘(B) the taxpayer has maintained all records required
under this title and has cooperated with reasonable
requests by the Secretary for witnesses, information, docu-
ments, meetings, and interviews; and
‘‘(C) in the case of a partnership, corporation, or trust,
the taxpayer is described in section 7430(c)(4)(A)(ii).
‘‘(3) COORDINATION.—Paragraph (1) shall not apply to any
issue if any other provision of this title provides for a specific
burden of proof with respect to such issue.
‘‘(b) USE OF STATISTICAL INFORMATION ON UNRELATED TAX-
PAYERS.—In the case of an individual taxpayer, the Secretary shall
have the burden of proof in any court proceeding with respect
to any item of income which was reconstructed by the Secretary
solely through the use of statistical information on unrelated tax-
payers.
‘‘(c) PENALTIES.—Notwithstanding any other provision of this
title, the Secretary shall have the burden of production in any
court proceeding with respect to the liability of any individual
for any penalty, addition to tax, or additional amount imposed
by this title.’’.
(b) CONFORMING AMENDMENT.—The table of subchapters for
chapter 76 is amended by adding at the end the following new
item:
‘‘SUBCHAPTER E. Burden of proof.’’.
(c) EFFECTIVE DATE.— Applicability.
(1) IN GENERAL.—The amendments made by this section 26 USC 7491
note.
shall apply to court proceedings arising in connection with
examinations commencing after the date of the enactment of
this Act.
(2) TAXABLE PERIODS OR EVENTS AFTER DATE OF ENACT-
MENT.—In any case in which there is no examination, such
amendments shall apply to court proceedings arising in connec-
tion with taxable periods or events beginning or occurring after
such date of enactment.
Subtitle B—Proceedings by Taxpayers Courts.
SEC. 3101. EXPANSION OF AUTHORITY TO AWARD COSTS AND CERTAIN

FEES.
(a) INCREASE IN ATTORNEY’S FEES.—
(1) INCREASE IN HOURLY AMOUNT.—Clause (iii) of section
7430(c)(1)(B) (relating to reasonable litigation costs) is amended
by striking ‘‘$110’’ and inserting ‘‘$125’’.
(2) AWARD OF HIGHER ATTORNEY’S FEES BASED ON COMPLEX-
ITY OF ISSUES.—Clause (iii) of section 7430(c)(1)(B) (relating
to the award of costs and certain fees) is amended by inserting
‘‘the difficulty of the issues presented in the case, or the local

availability of tax expertise,’’ before ‘‘justifies a higher rate’’.
(b) AWARD OF ADMINISTRATIVE COSTS INCURRED AFTER 30-
DAY LETTER.—Paragraph (2) of section 7430(c) is amended by strik-
ing the last sentence and inserting the following new flush sentence:
‘‘Such term shall only include costs incurred on or after which-
ever of the following is the earliest: (i) the date of the receipt
by the taxpayer of the notice of the decision of the Internal
Revenue Service Office of Appeals; (ii) the date of the notice
of deficiency; or (iii) the date on which the first letter of pro-
posed deficiency which allows the taxpayer an opportunity for
administrative review in the Internal Revenue Service Office
of Appeals is sent.’’.
(c) AWARD OF FEES FOR CERTAIN ADDITIONAL SERVICES.—
Paragraph (3) of section 7430(c) is amended to read as follows:
‘‘(3) ATTORNEYS FEES.—
‘‘(A) IN GENERAL.—For purposes of paragraphs (1) and
(2), fees for the services of an individual (whether or not
an attorney) who is authorized to practice before the Tax
Court or before the Internal Revenue Service shall be treat-
ed as fees for the services of an attorney.
‘‘(B) PRO BONO SERVICES.—The court may award
reasonable attorneys fees under subsection (a) in excess
of the attorneys fees paid or incurred if such fees are
less than the reasonable attorneys fees because an individ-
ual is representing the prevailing party for no fee or for
a fee which (taking into account all the facts and cir-
Applicability. cumstances) is no more than a nominal fee. This subpara-
graph shall apply only if such award is paid to such individ-
ual or such individual’s employer.’’.
(d) DETERMINATION OF WHETHER POSITION OF UNITED STATES
IS SUBSTANTIALLY JUSTIFIED.—Subparagraph (B) of section
7430(c)(4) is amended by redesignating clause (iii) as clause (iv)
and by inserting after clause (ii) the following new clause:
‘‘(iii) EFFECT OF LOSING ON SUBSTANTIALLY SIMILAR
ISSUES.—In determining for purposes of clause (i)
whether the position of the United States was substan-
tially justified, the court shall take into account
whether the United States has lost in courts of appeal
for other circuits on substantially similar issues.’’.
(e) TAXPAYER TREATED AS PREVAILING IF JUDGMENT IS LESS
THAN TAXPAYER’S OFFER.—
(1) IN GENERAL.—Section 7430(c)(4) (defining prevailing
party) is amended by adding at the end the following new
subparagraph:
‘‘(E) SPECIAL RULES WHERE JUDGMENT LESS THAN
TAXPAYER’S OFFER.—
‘‘(i) IN GENERAL.—A party to a court proceeding
meeting the requirements of subparagraph (A)(ii) shall
be treated as the prevailing party if the liability of
the taxpayer pursuant to the judgment in the proceed-
ing (determined without regard to interest) is equal
to or less than the liability of the taxpayer which
would have been so determined if the United States
had accepted a qualified offer of the party under sub-
section (g).
‘‘(ii) EXCEPTIONS.—This subparagraph shall not

apply to—
‘‘(I) any judgment issued pursuant to a settle-
ment; or
‘‘(II) any proceeding in which the amount of
tax liability is not in issue, including any declara-
tory judgment proceeding, any proceeding to
enforce or quash any summons issued pursuant
to this title, and any action to restrain disclosure
under section 6110(f ).
‘‘(iii) SPECIAL RULES.—If this subparagraph applies Applicability.
to any court proceeding—
‘‘(I) the determination under clause (i) shall
be made by reference to the last qualified offer
made with respect to the tax liability at issue
in the proceeding; and
‘‘(II) reasonable administrative and litigation
costs shall only include costs incurred on and after
the date of such offer.
‘‘(iv) COORDINATION.—This subparagraph shall not
apply to a party which is a prevailing party under
any other provision of this paragraph.’’.
(2) QUALIFIED OFFER.—Section 7430 is amended by adding
at the end the following new subsection:
‘‘(g) QUALIFIED OFFER.—For purposes of subsection (c)(4)—
‘‘(1) IN GENERAL.—The term ‘qualified offer’ means a
written offer which—
‘‘(A) is made by the taxpayer to the United States
during the qualified offer period;
‘‘(B) specifies the offered amount of the taxpayer’s
liability (determined without regard to interest);
‘‘(C) is designated at the time it is made as a qualified
offer for purposes of this section; and
‘‘(D) remains open during the period beginning on the
date it is made and ending on the earliest of the date
the offer is rejected, the date the trial begins, or the 90th
day after the date the offer is made.
‘‘(2) QUALIFIED OFFER PERIOD.—For purposes of this sub-
section, the term ‘qualified offer period’ means the period—
‘‘(A) beginning on the date on which the first letter
of proposed deficiency which allows the taxpayer an oppor-
tunity for administrative review in the Internal Revenue
Service Office of Appeals is sent, and
‘‘(B) ending on the date which is 30 days before the
date the case is first set for trial.’’.
(f ) AWARD OF ATTORNEYS FEES IN UNAUTHORIZED INSPECTION
AND DISCLOSURE CASES.—Section 7431(c) (relating to damages) is
amended by striking the period at the end of paragraph (2) and
inserting ‘‘, plus’’, and by adding at the end the following new
paragraph:
‘‘(3) in the case of a plaintiff which is described in section
7430(c)(4)(A)(ii), reasonable attorneys fees, except that if the
defendant is the United States, reasonable attorneys fees may
be awarded only if the plaintiff is the prevailing party (as
determined under section 7430(c)(4)).’’.
(g) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall apply to costs incurred (and, in the case of the amendment 26 USC 7430
note.
made by subsection (c), services performed) more than 180 days

after the date of the enactment of this Act.
SEC. 3102. CIVIL DAMAGES FOR COLLECTION ACTIONS.
(a) EXTENSION TO NEGLIGENCE ACTIONS.—
(1) IN GENERAL.—Section 7433 (relating to civil damages
for certain unauthorized collection actions) is amended—
(A) in subsection (a), by inserting ‘‘, or by reason of
negligence,’’ after ‘‘recklessly or intentionally’’; and
(B) in subsection (b)—
(i) in the matter preceding paragraph (1), by
inserting ‘‘($100,000, in the case of negligence)’’ after
‘‘$1,000,000’’; and
(ii) in paragraph (1), by inserting ‘‘or negligent’’
after ‘‘reckless or intentional’’.
(2) REQUIREMENT THAT ADMINISTRATIVE REMEDIES BE
EXHAUSTED.—Paragraph (1) of section 7433(d) is amended to
read as follows:
‘‘(1) REQUIREMENT THAT ADMINISTRATIVE REMEDIES BE
EXHAUSTED.—A judgment for damages shall not be awarded
under subsection (b) unless the court determines that the plain-
tiff has exhausted the administrative remedies available to
such plaintiff within the Internal Revenue Service.’’.
(b) DAMAGES ALLOWED IN CIVIL ACTIONS BY PERSONS OTHER
THAN TAXPAYERS.—Section 7426 is amended by redesignating sub-
section (h) as subsection (i) and by adding after subsection (g)
the following new subsection:
‘‘(h) RECOVERY OF DAMAGES PERMITTED IN CERTAIN CASES.—
‘‘(1) IN GENERAL.—Notwithstanding subsection (b), if, in
any action brought under this section, there is a finding that
any officer or employee of the Internal Revenue Service reck-
lessly or intentionally, or by reason of negligence, disregarded
any provision of this title the defendant shall be liable to
the plaintiff in an amount equal to the lesser of $1,000,000
($100,000 in the case of negligence) or the sum of—
‘‘(A) actual, direct economic damages sustained by the
plaintiff as a proximate result of the reckless or intentional
or negligent disregard of any provision of this title by
the officer or employee (reduced by any amount of such
damages awarded under subsection (b)); and
‘‘(B) the costs of the action.
Applicability. ‘‘(2) REQUIREMENT THAT ADMINISTRATIVE REMEDIES BE
EXHAUSTED; MITIGATION; PERIOD.—The rules of section 7433(d)
shall apply for purposes of this subsection.
‘‘(3) PAYMENT AUTHORITY.—Claims pursuant to this section
shall be payable out of funds appropriated under section 1304
of title 31, United States Code.’’.
(c) CIVIL DAMAGES FOR IRS VIOLATIONS OF BANKRUPTCY
PROCEDURES.—
(1) IN GENERAL.—Section 7433 (relating to civil damages
for certain unauthorized collection actions) is amended by add-
ing at the end the following new subsection:
‘‘(e) ACTIONS FOR VIOLATIONS OF CERTAIN BANKRUPTCY
PROCEDURES.—
‘‘(1) IN GENERAL.—If, in connection with any collection of
Federal tax with respect to a taxpayer, any officer or employee
of the Internal Revenue Service willfully violates any provision
of section 362 (relating to automatic stay) or 524 (relating

to effect of discharge) of title 11, United States Code (or any
successor provision), or any regulation promulgated under such
provision, such taxpayer may petition the bankruptcy court
to recover damages against the United States.
‘‘(2) REMEDY TO BE EXCLUSIVE.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), notwithstanding section 105 of such title 11, such
petition shall be the exclusive remedy for recovering dam-
ages resulting from such actions.
‘‘(B) CERTAIN OTHER ACTIONS PERMITTED.—Subpara-
graph (A) shall not apply to an action under section 362(h)
of such title 11 for a violation of a stay provided by section
362 of such title; except that—
‘‘(i) administrative and litigation costs in connec-
tion with such an action may only be awarded under
section 7430; and
‘‘(ii) administrative costs may be awarded only if
incurred on or after the date that the bankruptcy peti-
tion is filed.’’.
(2) CONFORMING AMENDMENT.—Subsection (b) of section
7433 is amended by inserting ‘‘or petition filed under subsection
(e)’’ after ‘‘subsection (a)’’.
(d) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall apply to actions of officers or employees of the Internal Reve- 26 USC 7426
nue Service after the date of the enactment of this Act. note.
SEC. 3103. INCREASE IN SIZE OF CASES PERMITTED ON SMALL CASE

CALENDAR.
(a) IN GENERAL.—Section 7463 (relating to disputes involving
$10,000 or less) is amended by striking ‘‘$10,000’’ each place it
appears (including the section heading) and inserting ‘‘$50,000’’.
(1) Sections 7436(c)(1) and 7443A(b)(3) are each amended
by striking ‘‘$10,000’’ and inserting ‘‘$50,000’’.
(2) The table of sections for part II of subchapter C of
chapter 76 is amended by striking ‘‘$10,000’’ in the item relating
to section 7463 and inserting ‘‘$50,000’’.
(c) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall apply to proceedings commenced after the date of the enact- 26 USC 7436
ment of this Act. note.
SEC. 3104. ACTIONS FOR REFUND WITH RESPECT TO CERTAIN ESTATES

WHICH HAVE ELECTED THE INSTALLMENT METHOD OF
PAYMENT.
(a) IN GENERAL.—Section 7422 is amended by redesignating
subsection ( j) as subsection (k) and by inserting after subsection
(i) the following new subsection:
‘‘( j) SPECIAL RULE FOR ACTIONS WITH RESPECT TO ESTATES
FOR WHICH AN ELECTION UNDER SECTION 6166 IS MADE.—
‘‘(1) IN GENERAL.—The district courts of the United States
and the United States Court of Federal Claims shall not fail
to have jurisdiction over any action brought by the representa-
tive of an estate to which this subsection applies to determine
the correct amount of the estate tax liability of such estate
(or for any refund with respect thereto) solely because the
full amount of such liability has not been paid by reason of
an election under section 6166 with respect to such estate.
‘‘(2) ESTATES TO WHICH SUBSECTION APPLIES.—This sub-

section shall apply to any estate if, as of the date the action
is filed—
‘‘(A) no portion of the installments payable under sec-
tion 6166 have been accelerated;
‘‘(B) all such installments the due date for which is
on or before the date the action is filed have been paid;
‘‘(C) there is no case pending in the Tax Court with
respect to the tax imposed by section 2001 on the estate
and, if a notice of deficiency under section 6212 with respect
to such tax has been issued, the time for filing a petition
with the Tax Court with respect to such notice has expired;
and
‘‘(D) no proceeding for declaratory judgment under
section 7479 is pending.
‘‘(3) PROHIBITION ON COLLECTION OF DISALLOWED LIABIL-
ITY.—If the court redetermines under paragraph (1) the estate
tax liability of an estate, no part of such liability which is
disallowed by a decision of such court which has become final
may be collected by the Secretary, and amounts paid in excess
of the installments determined by the court as currently due
and payable shall be refunded.’’.
(b) EXTENSION OF TIME TO FILE REFUND SUIT.—Section 7479
(relating to declaratory judgments relating to eligibility of estate
with respect to installment payments under section 6166) is amend-
ed by adding at the end the following new subsection:
‘‘(c) EXTENSION OF TIME TO FILE REFUND SUIT.—The 2-year
period in section 6532(a)(1) for filing suit for refund after disallow-
ance of a claim shall be suspended during the 90-day period after
the mailing of the notice referred to in subsection (b)(3) and, if
a pleading has been filed with the Tax Court under this section,
until the decision of the Tax Court has become final.’’.
Applicability. (c) EFFECTIVE DATE.—The amendments made by this section
26 USC 7422 shall apply to any claim for refund filed after the date of the
note. enactment of this Act.
SEC. 3105. ADMINISTRATIVE APPEAL OF ADVERSE INTERNAL REVENUE
SERVICE DETERMINATION OF TAX-EXEMPT STATUS OF
BOND ISSUE.
The Internal Revenue Service shall amend its administrative
procedures to provide that if, upon examination, the Internal Reve-
nue Service proposes to an issuer that interest on previously issued
obligations of such issuer is not excludable from gross income under
section 103(a) of the Internal Revenue Code of 1986, the issuer
of such obligations shall have an administrative appeal of right
to a senior officer of the Internal Revenue Service Office of Appeals.
SEC. 3106. CIVIL ACTION FOR RELEASE OF ERRONEOUS LIEN.
(a) RIGHT OF SUBSTITUTION OF VALUE.—Subsection (b) of section
6325 (relating to release of lien or discharge of property) is amended
by adding at the end the following new paragraph:
‘‘(4) RIGHT OF SUBSTITUTION OF VALUE.—
‘‘(A) IN GENERAL.—At the request of the owner of any
property subject to any lien imposed by this chapter, the
Secretary shall issue a certificate of discharge of such prop-
erty if such owner—
‘‘(i) deposits with the Secretary an amount of
money equal to the value of the interest of the United
States (as determined by the Secretary) in the property;

or
‘‘(ii) furnishes a bond acceptable to the Secretary
in a like amount.
‘‘(B) REFUND OF DEPOSIT WITH INTEREST AND RELEASE
OF BOND.—The Secretary shall refund the amount so depos-
ited (and shall pay interest at the overpayment rate under
section 6621), and shall release such bond, to the extent
that the Secretary determines that—
‘‘(i) the unsatisfied liability giving rise to the lien
can be satisfied from a source other than such property;
or
‘‘(ii) the value of the interest of the United States
in the property is less than the Secretary’s prior deter-
mination of such value.
‘‘(C) USE OF DEPOSIT, ETC., IF ACTION TO CONTEST LIEN
NOT FILED.—If no action is filed under section 7426(a)(4)
within the period prescribed therefor, the Secretary shall,
within 60 days after the expiration of such period—
‘‘(i) apply the amount deposited, or collect on such
bond, to the extent necessary to satisfy the unsatisfied
liability secured by the lien; and
‘‘(ii) refund (with interest as described in subpara-
graph (B)) any portion of the amount deposited which
is not used to satisfy such liability.
‘‘(D) EXCEPTION.—Subparagraph (A) shall not apply
if the owner of the property is the person whose unsatisfied
liability gave rise to the lien.’’.
(b) CIVIL ACTION TO RELEASE ERRONEOUS LIEN.—
(1) IN GENERAL.—Subsection (a) of section 7426 (relating
to civil actions by persons other than taxpayers) is amended
by adding at the end the following new paragraph:
‘‘(4) SUBSTITUTION OF VALUE.—If a certificate of discharge
is issued to any person under section 6325(b)(4) with respect
to any property, such person may, within 120 days after the
day on which such certificate is issued, bring a civil action
against the United States in a district court of the United
States for a determination of whether the value of the interest
of the United States (if any) in such property is less than
the value determined by the Secretary. No other action may
be brought by such person for such a determination.’’.
(2) FORM OF RELIEF.—
(A) IN GENERAL.—Subsection (b) of section 7426 is
amended by adding at the end the following new paragraph:
‘‘(5) SUBSTITUTION OF VALUE.—If the court determines that
the Secretary’s determination of the value of the interest of
the United States in the property for purposes of section
6325(b)(4) exceeds the actual value of such interest, the court
shall grant a judgment ordering a refund of the amount depos-
ited, and a release of the bond, to the extent that the aggregate
of the amounts thereof exceeds such value determined by the
court.’’.
(B) INTEREST ALLOWED ON REFUND OF DEPOSIT.—
Subsection (g) of section 7426 is amended by striking ‘‘and’’
at the end of paragraph (1), by striking the period at
the end of paragraph (2) and inserting ‘‘; and’’, and by
adding at the end the following new paragraph:
‘‘(3) in the case of a judgment pursuant to subsection (b)(5)

which orders a refund of any amount, from the date the Sec-
retary received such amount to the date of payment of such
judgment.’’.
(3) SUSPENSION OF RUNNING OF STATUTE OF LIMITATION.—
Subsection (f ) of section 6503 is amended to read as follows:
‘‘(f ) WRONGFUL SEIZURE OF OR LIEN ON PROPERTY OF THIRD
PARTY.—
‘‘(1) WRONGFUL SEIZURE.—The running of the period under
section 6502 shall be suspended for a period equal to the
period from the date property (including money) of a third
party is wrongfully seized or received by the Secretary to the
date the Secretary returns property pursuant to section 6343(b)
or the date on which a judgment secured pursuant to section
7426 with respect to such property becomes final, and for
30 days thereafter. The running of such period shall be sus-
pended under this paragraph only with respect to the amount
of such assessment equal to the amount of money or the value
of specific property returned.
‘‘(2) WRONGFUL LIEN.—In the case of any assessment for
which a lien was made on any property, the running of the
period under section 6502 shall be suspended for a period
equal to the period beginning on the date any person becomes
entitled to a certificate under section 6325(b)(4) with respect
to such property and ending on the date which is 30 days
after the earlier of—
‘‘(A) the earliest date on which the Secretary no longer
holds any amount as a deposit or bond provided under
section 6325(b)(4) by reason of such deposit or bond being
used to satisfy the unpaid tax or being refunded or released;
or
‘‘(B) the date that the judgment secured under section
7426(b)(5) becomes final.
The running of such period shall be suspended under this
paragraph only with respect to the amount of such assessment
equal to the value of the interest of the United States in
the property plus interest, penalties, additions to the tax, and
additional amounts attributable thereto.’’.
Subtitle C—Relief for Innocent Spouses

and for Taxpayers Unable To Manage
Their Financial Affairs Due to Disabil-
ities
SEC. 3201. RELIEF FROM JOINT AND SEVERAL LIABILITY ON JOINT
RETURN.
(a) IN GENERAL.—Subpart B of part II of subchapter A of
chapter 61 is amended by inserting after section 6014 the following
new section:
‘‘SEC. 6015. RELIEF FROM JOINT AND SEVERAL LIABILITY ON JOINT
RETURN.
‘‘(a) IN GENERAL.—Notwithstanding section 6013(d)(3)—
‘‘(1) an individual who has made a joint return may elect

to seek relief under the procedures prescribed under subsection
(b); and
‘‘(2) if such individual is eligible to elect the application
of subsection (c), such individual may, in addition to any elec-
tion under paragraph (1), elect to limit such individual’s liability
for any deficiency with respect to such joint return in the
manner prescribed under subsection (c).
Any determination under this section shall be made without regard
to community property laws.
‘‘(b) PROCEDURES FOR RELIEF FROM LIABILITY APPLICABLE TO
ALL JOINT FILERS.—
‘‘(1) IN GENERAL.—Under procedures prescribed by the
Secretary, if—
‘‘(A) a joint return has been made for a taxable year;
‘‘(B) on such return there is an understatement of
tax attributable to erroneous items of one individual filing
the joint return;
‘‘(C) the other individual filing the joint return estab-
lishes that in signing the return he or she did not know,
and had no reason to know, that there was such understate-
ment;
‘‘(D) taking into account all the facts and cir-
cumstances, it is inequitable to hold the other individual
liable for the deficiency in tax for such taxable year attrib-
utable to such understatement; and
‘‘(E) the other individual elects (in such form as the Deadline.
Secretary may prescribe) the benefits of this subsection
not later than the date which is 2 years after the date
the Secretary has begun collection activities with respect
to the individual making the election,
then the other individual shall be relieved of liability for tax
(including interest, penalties, and other amounts) for such tax-
able year to the extent such liability is attributable to such
understatement.
‘‘(2) APPORTIONMENT OF RELIEF.—If an individual who, but
for paragraph (1)(C), would be relieved of liability under para-
graph (1), establishes that in signing the return such individual
did not know, and had no reason to know, the extent of such
understatement, then such individual shall be relieved of liabil-
ity for tax (including interest, penalties, and other amounts)
for such taxable year to the extent that such liability is attrib-
utable to the portion of such understatement of which such
individual did not know and had no reason to know.
‘‘(3) UNDERSTATEMENT.—For purposes of this subsection,
the term ‘understatement’ has the meaning given to such term
by section 6662(d)(2)(A).
‘‘(c) PROCEDURES TO LIMIT LIABILITY FOR TAXPAYERS NO
LONGER MARRIED OR TAXPAYERS LEGALLY SEPARATED OR NOT
LIVING TOGETHER.—
‘‘(1) IN GENERAL.—Except as provided in this subsection,
if an individual who has made a joint return for any taxable
year elects the application of this subsection, the individual’s
liability for any deficiency which is assessed with respect to
the return shall not exceed the portion of such deficiency prop-
erly allocable to the individual under subsection (d).
‘‘(2) BURDEN OF PROOF.—Except as provided in subpara-

graph (A)(ii) or (C) of paragraph (3), each individual who elects
the application of this subsection shall have the burden of
proof with respect to establishing the portion of any deficiency
allocable to such individual.
‘‘(3) ELECTION.—
‘‘(A) INDIVIDUALS ELIGIBLE TO MAKE ELECTION.—
‘‘(i) IN GENERAL.—An individual shall only be
eligible to elect the application of this subsection if—
‘‘(I) at the time such election is filed, such
individual is no longer married to, or is legally
separated from, the individual with whom such
individual filed the joint return to which the elec-
tion relates; or
‘‘(II) such individual was not a member of
the same household as the individual with whom
such joint return was filed at any time during
the 12-month period ending on the date such elec-
tion is filed.
‘‘(ii) CERTAIN TAXPAYERS INELIGIBLE TO ELECT.—
If the Secretary demonstrates that assets were trans-
ferred between individuals filing a joint return as part
of a fraudulent scheme by such individuals, an election
under this subsection by either individual shall be
invalid (and section 6013(d)(3) shall apply to the joint
return).
Deadline. ‘‘(B) TIME FOR ELECTION.—An election under this sub-
section for any taxable year shall be made not later than
2 years after the date on which the Secretary has begun
collection activities with respect to the individual making
the election.
‘‘(C) ELECTION NOT VALID WITH RESPECT TO CERTAIN
DEFICIENCIES.—If the Secretary demonstrates that an
individual making an election under this subsection had
actual knowledge, at the time such individual signed the
return, of any item giving rise to a deficiency (or portion
thereof) which is not allocable to such individual under
subsection (d), such election shall not apply to such defi-
ciency (or portion). This subparagraph shall not apply
where the individual with actual knowledge establishes
that such individual signed the return under duress.
‘‘(4) LIABILITY INCREASED BY REASON OF TRANSFERS OF
PROPERTY TO AVOID TAX.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of this subsection, the portion of the deficiency for
which the individual electing the application of this sub-
section is liable (without regard to this paragraph) shall
be increased by the value of any disqualified asset trans-
ferred to the individual.
‘‘(B) DISQUALIFIED ASSET.—For purposes of this para-
graph—
‘‘(i) IN GENERAL.—The term ‘disqualified asset’
means any property or right to property transferred
to an individual making the election under this sub-
section with respect to a joint return by the other
purpose of the transfer was the avoidance of tax or

payment of tax.
‘‘(ii) PRESUMPTION.—
‘‘(I) IN GENERAL.—For purposes of clause (i),
except as provided in subclause (II), any transfer
which is made after the date which is 1 year
before the date on which the first letter of proposed
deficiency which allows the taxpayer an oppor-
tunity for administrative review in the Internal
Revenue Service Office of Appeals is sent shall
be presumed to have as its principal purpose the
avoidance of tax or payment of tax.
‘‘(II) EXCEPTIONS.—Subclause (I) shall not
apply to any transfer pursuant to a decree of
divorce or separate maintenance or a written
instrument incident to such a decree or to any
transfer which an individual establishes did not
have as its principal purpose the avoidance of tax
or payment of tax.
‘‘(d) ALLOCATION OF DEFICIENCY.—For purposes of sub-
section (c)—
‘‘(1) IN GENERAL.—The portion of any deficiency on a joint
return allocated to an individual shall be the amount which
bears the same ratio to such deficiency as the net amount
of items taken into account in computing the deficiency and
allocable to the individual under paragraph (3) bears to the
net amount of all items taken into account in computing the
deficiency.
‘‘(2) SEPARATE TREATMENT OF CERTAIN ITEMS.—If a defi-
ciency (or portion thereof) is attributable to—
‘‘(A) the disallowance of a credit; or
‘‘(B) any tax (other than tax imposed by section 1
or 55) required to be included with the joint return;
and such item is allocated to one individual under paragraph
(3), such deficiency (or portion) shall be allocated to such
individual. Any such item shall not be taken into account
under paragraph (1).
‘‘(3) ALLOCATION OF ITEMS GIVING RISE TO THE DEFI-
CIENCY.—For purposes of this subsection—
‘‘(A) IN GENERAL.—Except as provided in paragraphs
(4) and (5), any item giving rise to a deficiency on a joint
return shall be allocated to individuals filing the return
in the same manner as it would have been allocated if
the individuals had filed separate returns for the taxable
year.
‘‘(B) EXCEPTION WHERE OTHER SPOUSE BENEFITS.— Regulations.
Under rules prescribed by the Secretary, an item otherwise
allocable to an individual under subparagraph (A) shall
be allocated to the other individual filing the joint return
to the extent the item gave rise to a tax benefit on the
joint return to the other individual.
‘‘(C) EXCEPTION FOR FRAUD.—The Secretary may pro-
vide for an allocation of any item in a manner not pre-
scribed by subparagraph (A) if the Secretary establishes
that such allocation is appropriate due to fraud of one
or both individuals.
‘‘(4) LIMITATIONS ON SEPARATE RETURNS DISREGARDED.—

If an item of deduction or credit is disallowed in its entirety
solely because a separate return is filed, such disallowance
shall be disregarded and the item shall be computed as if
a joint return had been filed and then allocated between the
Applicability. spouses appropriately. A similar rule shall apply for purposes
of section 86.
‘‘(5) CHILD’S LIABILITY.—If the liability of a child of a tax-
payer is included on a joint return, such liability shall be
disregarded in computing the separate liability of either spouse
and such liability shall be allocated appropriately between the
spouses.
‘‘(e) PETITION FOR REVIEW BY TAX COURT.—
‘‘(1) IN GENERAL.—In the case of an individual who elects
to have subsection (b) or (c) apply—
‘‘(A) IN GENERAL.—The individual may petition the Tax
Court (and the Tax Court shall have jurisdiction) to deter-
mine the appropriate relief available to the individual
under this section if such petition is filed during the 90-
day period beginning on the date on which the Secretary
mails by certified or registered mail a notice to such individ-
ual of the Secretary’s determination of relief available to
the individual. Notwithstanding the preceding sentence,
an individual may file such petition at any time after
the date which is 6 months after the date such election
is filed with the Secretary and before the close of such
90-day period.
‘‘(B) RESTRICTIONS APPLICABLE TO COLLECTION OF
ASSESSMENT.—
‘‘(i) IN GENERAL.—Except as otherwise provided
in section 6851 or 6861, no levy or proceeding in court
shall be made, begun, or prosecuted against the
individual making an election under subsection (b) or
(c) for collection of any assessment to which such elec-
tion relates until the expiration of the 90-day period
described in subparagraph (A), or, if a petition has
been filed with the Tax Court, until the decision of
Applicability. the Tax Court has become final. Rules similar to the
rules of section 7485 shall apply with respect to the
collection of such assessment.
‘‘(ii) AUTHORITY TO ENJOIN COLLECTION ACTIONS.—
Notwithstanding the provisions of section 7421(a), the
beginning of such levy or proceeding during the time
the prohibition under clause (i) is in force may be
enjoined by a proceeding in the proper court, including
the Tax Court. The Tax Court shall have no jurisdiction
under this subparagraph to enjoin any action or
proceeding unless a timely petition has been filed
under subparagraph (A) and then only in respect of
the amount of the assessment to which the election
under subsection (b) or (c) relates.
‘‘(2) SUSPENSION OF RUNNING OF PERIOD OF LIMITATIONS.—
The running of the period of limitations in section 6502 on
the collection of the assessment to which the petition under
paragraph (1)(A) relates shall be suspended for the period dur-
ing which the Secretary is prohibited by paragraph (1)(B) from
collecting by levy or a proceeding in court and for 60 days

thereafter.
‘‘(3) APPLICABLE RULES.—
‘‘(A) ALLOWANCE OF CREDIT OR REFUND.—Except as
provided in subparagraph (B), notwithstanding any other
law or rule of law (other than section 6512(b), 7121, or
7122), credit or refund shall be allowed or made to the
extent attributable to the application of this section.
‘‘(B) RES JUDICATA.—In the case of any election under
subsection (b) or (c), if a decision of the Tax Court in
any prior proceeding for the same taxable year has become
final, such decision shall be conclusive except with respect
to the qualification of the individual for relief which was
not an issue in such proceeding. The exception contained
in the preceding sentence shall not apply if the Tax Court
determines that the individual participated meaningfully
in such prior proceeding.
‘‘(C) LIMITATION ON TAX COURT JURISDICTION.—If a suit
for refund is begun by either individual filing the joint
return pursuant to section 6532—
‘‘(i) the Tax Court shall lose jurisdiction of the
individual’s action under this section to whatever
extent jurisdiction is acquired by the district court
or the United States Court of Federal Claims over
the taxable years that are the subject of the suit for
refund; and
‘‘(ii) the court acquiring jurisdiction shall have
jurisdiction over the petition filed under this sub-
section.
‘‘(4) NOTICE TO OTHER SPOUSE.—The Tax Court shall estab- Regulations.
lish rules which provide the individual filing a joint return
but not making the election under subsection (b) or (c) with
adequate notice and an opportunity to become a party to a
proceeding under either such subsection.
‘‘(f ) EQUITABLE RELIEF.—Under procedures prescribed by the
Secretary, if—
‘‘(1) taking into account all the facts and circumstances,
it is inequitable to hold the individual liable for any unpaid
tax or any deficiency (or any portion of either); and
‘‘(2) relief is not available to such individual under sub-
section (b) or (c),
the Secretary may relieve such individual of such liability.
‘‘(g) REGULATIONS.—The Secretary shall prescribe such regula-
tions as are necessary to carry out the provisions of this section,
including—
‘‘(1) regulations providing methods for allocation of items
other than the methods under subsection (d)(3); and
‘‘(2) regulations providing the opportunity for an individual
to have notice of, and an opportunity to participate in, any
administrative proceeding with respect to an election made
under subsection (b) or (c) by the other individual filing the
joint return.’’.
(b) EQUITABLE RELIEF FOR INDIVIDUALS NOT FILING JOINT
RETURN.—Section 66(c) (relating to spouse relieved of liability in
certain other cases) is amended by adding at the end the following
new sentence: ‘‘Under procedures prescribed by the Secretary, if, Procedures.
taking into account all the facts and circumstances, it is inequitable
to hold the individual liable for any unpaid tax or any deficiency
(or any portion of either) attributable to any item for which relief
is not available under the preceding sentence, the Secretary may
relieve such individual of such liability.’’.
Deadline. (c) SEPARATE FORM FOR APPLYING FOR SPOUSAL RELIEF.—Not
26 USC 6015 later than 180 days after the date of the enactment of this Act,
note. the Secretary of the Treasury shall develop a separate form with
instructions for use by taxpayers in applying for relief under section
6015(a) of the Internal Revenue Code of 1986, as added by this
section.
26 USC 6013 (d) SEPARATE NOTICE TO EACH FILER.—The Secretary of the
note. Treasury shall, wherever practicable, send any notice relating to
a joint return under section 6013 of the Internal Revenue Code
of 1986 separately to each individual filing the joint return.
(e) CONFORMING AMENDMENTS.—
(1) Section 6013 is amended by striking subsection (e).
(2) Subparagraph (A) of section 6230(c)(5) is amended by
striking ‘‘section 6013(e)’’ and inserting ‘‘section 6015’’.
(3) Section 7421(a) is amended by inserting ‘‘6015(d),’’ after
‘‘sections’’.
(f ) CLERICAL AMENDMENT.—The table of sections for subpart
B of part II of subchapter A of chapter 61 is amended by inserting
after the item relating to section 6014 the following new item:
‘‘Sec. 6015. Relief from joint and several liability on joint return.’’.
26 USC 6015 (g) EFFECTIVE DATES.—
note. (1) IN GENERAL.—Except as provided in paragraph (2), the
Applicability. amendments made by this section shall apply to any liability
for tax arising after the date of the enactment of this Act
and any liability for tax arising on or before such date but
remaining unpaid as of such date.
(2) 2-YEAR PERIOD.—The 2-year period under subsection
(b)(1)(E) or (c)(3)(B) of section 6015 of the Internal Revenue
Code of 1986 shall not expire before the date which is 2 years
after the date of the first collection activity after the date
SEC. 3202. SUSPENSION OF STATUTE OF LIMITATIONS ON FILING
REFUND CLAIMS DURING PERIODS OF DISABILITY.
(a) IN GENERAL.—Section 6511 (relating to limitations on credit
or refund) is amended by redesignating subsection (h) as subsection
(i) and by inserting after subsection (g) the following new subsection:
‘‘(h) RUNNING OF PERIODS OF LIMITATION SUSPENDED WHILE
TAXPAYER IS UNABLE TO MANAGE FINANCIAL AFFAIRS DUE TO
DISABILITY.—
‘‘(1) IN GENERAL.—In the case of an individual, the running
of the periods specified in subsections (a), (b), and (c) shall
be suspended during any period of such individual’s life that
such individual is financially disabled.
‘‘(2) FINANCIALLY DISABLED.—
‘‘(A) IN GENERAL.—For purposes of paragraph (1), an
individual is financially disabled if such individual is
unable to manage his financial affairs by reason of a medi-
cally determinable physical or mental impairment of the
individual which can be expected to result in death or
which has lasted or can be expected to last for a continuous
period of not less than 12 months. An individual shall
not be considered to have such an impairment unless proof
of the existence thereof is furnished in such form and

manner as the Secretary may require.
‘‘(B) EXCEPTION WHERE INDIVIDUAL HAS GUARDIAN,
ETC.—An individual shall not be treated as financially dis-
abled during any period that such individual’s spouse or
any other person is authorized to act on behalf of such
individual in financial matters.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a) Applicability.
shall apply to periods of disability before, on, or after the date 26 USC 6511
of the enactment of this Act but shall not apply to any claim note.
for credit or refund which (without regard to such amendment)
is barred by the operation of any law or rule of law (including
res judicata) as of the date of the enactment of this Act.
Subtitle D—Provisions Relating to Interest

and Penalties
SEC. 3301. ELIMINATION OF INTEREST RATE DIFFERENTIAL ON OVER-
LAPPING PERIODS OF INTEREST ON TAX OVERPAY-
MENTS AND UNDERPAYMENTS.
(a) IN GENERAL.—Section 6621 (relating to determination of
rate of interest) is amended by adding at the end the following
new subsection:
‘‘(d) ELIMINATION OF INTEREST ON OVERLAPPING PERIODS OF
TAX OVERPAYMENTS AND UNDERPAYMENTS.—To the extent that,
for any period, interest is payable under subchapter A and allowable
under subchapter B on equivalent underpayments and overpay-
ments by the same taxpayer of tax imposed by this title, the
net rate of interest under this section on such amounts shall be
zero for such period.’’.
(b) CONFORMING AMENDMENT.—Subsection (f ) of section 6601
(relating to satisfaction by credits) is amended by adding at the
end the following new sentence: ‘‘The preceding sentence shall
not apply to the extent that section 6621(d) applies.’’.
(c) EFFECTIVE DATES.— Applicability.
(1) IN GENERAL.—Except as provided under paragraph (2), 26 USC 6601
note.
the amendments made by this section shall apply to interest
for periods beginning after the date of the enactment of this
Act.
(2) SPECIAL RULE.—The amendments made by this section
shall apply to interest for periods beginning before the date
of the enactment of this Act if the taxpayer—
(A) reasonably identifies and establishes periods of
such tax overpayments and underpayments for which the
zero rate applies; and
(B) not later than December 31, 1999, requests the Deadline.
Secretary of the Treasury to apply section 6621(d) of the
Internal Revenue Code of 1986, as added by subsection
(a), to such periods.
SEC. 3302. INCREASE IN OVERPAYMENT RATE PAYABLE TO TAXPAYERS
OTHER THAN CORPORATIONS.
(a) IN GENERAL.—Subparagraph (B) of section 6621(a)(1)
(defining overpayment rate) is amended to read as follows:
‘‘(B) 3 percentage points (2 percentage points in the
case of a corporation).’’.
Applicability. (b) EFFECTIVE DATE.—The amendment made by this section

26 USC 6621 shall apply to interest for the second and succeeding calendar
note. quarters beginning after the date of the enactment of this Act.
SEC. 3303. MITIGATION OF PENALTY ON INDIVIDUAL’S FAILURE TO
PAY FOR MONTHS DURING PERIOD OF INSTALLMENT
AGREEMENT.
(a) IN GENERAL.—Section 6651 (relating to failure to file tax
return or to pay tax) is amended by adding at the end the following
new subsection:
‘‘(h) LIMITATION ON PENALTY ON INDIVIDUAL’S FAILURE TO PAY
FOR MONTHS DURING PERIOD OF INSTALLMENT AGREEMENT.—In
the case of an individual who files a return of tax on or before
the due date for the return (including extensions), paragraphs (2)
and (3) of subsection (a) shall each be applied by substituting
‘0.25’ for ‘0.5’ each place it appears for purposes of determining
the addition to tax for any month during which an installment
agreement under section 6159 is in effect for the payment of such
tax.’’.
26 USC 6651 shall apply for purposes of determining additions to the tax for
note.
months beginning after December 31, 1999.
SEC. 3304. MITIGATION OF FAILURE TO DEPOSIT PENALTY.
(a) TAXPAYER MAY DESIGNATE PERIODS TO WHICH DEPOSITS
APPLY.—Section 6656 (relating to underpayment of deposits) is
amended by adding at the end the following new subsection:
‘‘(e) DESIGNATION OF PERIODS TO WHICH DEPOSITS APPLY.—
‘‘(1) IN GENERAL.—A person may, with respect to any
deposit of tax to be reported on such person’s return for a
specified tax period, designate the period or periods within
such specified tax period to which the deposit is to be applied
for purposes of this section.
‘‘(2) TIME FOR MAKING DESIGNATION.—A person may make
a designation under paragraph (1) only during the 90-day period
beginning on the date of a notice that a penalty under sub-
section (a) has been imposed for the specified tax period to
which the deposit relates.’’.
(b) EXPANSION OF EXEMPTION FOR FIRST-TIME DEPOSITS.—
(1) IN GENERAL.—Paragraph (2) of section 6656(c) (relating
to exemption for first-time depositors of employment taxes)
‘‘(2) such failure—
‘‘(A) occurs during the first quarter that such person
was required to deposit any employment tax; or
‘‘(B) if such person is required to change the frequency
of deposits of any employment tax, relates to the first
deposit to which such change applies, and’’.
(c) PERIODS APPLY TO CURRENT LIABILITIES UNLESS DES-
IGNATED OTHERWISE.—Paragraph (1) of section 6656(e) (as added
by subsection (a) of this section) is amended to read as follows:
‘‘(e) DESIGNATION OF PERIODS TO WHICH DEPOSITS APPLY.—
‘‘(1) IN GENERAL.—A deposit made under this section shall
be applied to the most recent period or periods within the
specified tax period to which the deposit relates, unless the
person making such deposit designates a different period or
periods to which such deposit is to be applied.’’.
Applicability. (d) EFFECTIVE DATE.—
26 USC 6656
note.
(1) IN GENERAL.—The amendments made by this section

shall apply to deposits required to be made after the 180th
day after the date of the enactment of this Act.
(2) APPLICATION TO CURRENT LIABILITIES.—The amendment
made by subsection (c) shall apply to deposits required to
be made after December 31, 2001.
SEC. 3305. SUSPENSION OF INTEREST AND CERTAIN PENALTIES
WHERE SECRETARY FAILS TO CONTACT INDIVIDUAL TAX-
PAYER.
(a) IN GENERAL.—Section 6404 (relating to abatements) is
amended by redesignating subsection (g) as subsection (h) and
by inserting after subsection (f ) the following new subsection:
‘‘(g) SUSPENSION OF INTEREST AND CERTAIN PENALTIES WHERE
SECRETARY FAILS TO CONTACT TAXPAYER.—
‘‘(1) SUSPENSION.—
‘‘(A) IN GENERAL.—In the case of an individual who
files a return of tax imposed by subtitle A for a taxable
year on or before the due date for the return (including
extensions), if the Secretary does not provide a notice to
the taxpayer specifically stating the taxpayer’s liability and
the basis for the liability before the close of the 1-year
period (18-month period in the case of taxable years begin-
ning before January 1, 2004) beginning on the later of—
‘‘(i) the date on which the return is filed; or
‘‘(ii) the due date of the return without regard
to extensions,
the Secretary shall suspend the imposition of any interest,
penalty, addition to tax, or additional amount with respect
to any failure relating to the return which is computed
by reference to the period of time the failure continues
to exist and which is properly allocable to the suspension
period.
‘‘(B) SEPARATE APPLICATION.—This paragraph shall be
applied separately with respect to each item or adjustment.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply to—
‘‘(A) any penalty imposed by section 6651;
‘‘(B) any interest, penalty, addition to tax, or additional
amount in a case involving fraud;
‘‘(C) any interest, penalty, addition to tax, or additional
amount with respect to any tax liability shown on the
return; or
‘‘(D) any criminal penalty.
‘‘(3) SUSPENSION PERIOD.—For purposes of this subsection,
the term ‘suspension period’ means the period—
‘‘(A) beginning on the day after the close of the 1-
year period (18-month period in the case of taxable years
beginning before January 1, 2004) under paragraph (1);
and
‘‘(B) ending on the date which is 21 days after the
date on which notice described in paragraph (1)(A) is pro-
vided by the Secretary.’’.
(b) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall apply to taxable years ending after the date of the enactment 26 USC 6404
note.
of this Act.
SEC. 3306. PROCEDURAL REQUIREMENTS FOR IMPOSITION OF
PENALTIES AND ADDITIONS TO TAX.
(a) IN GENERAL.—Chapter 68 (relating to additions to the tax,
additional amounts, and assessable penalties) is amended by adding
at the end the following new subchapter:
‘‘Subchapter C—Procedural Requirements
‘‘Sec. 6751. Procedural requirements.
‘‘SEC. 6751. PROCEDURAL REQUIREMENTS.

‘‘(a) COMPUTATION OF PENALTY INCLUDED IN NOTICE.—The
Secretary shall include with each notice of penalty under this
title information with respect to the name of the penalty, the
section of this title under which the penalty is imposed, and a
computation of the penalty.
‘‘(b) APPROVAL OF ASSESSMENT.—
‘‘(1) IN GENERAL.—No penalty under this title shall be
assessed unless the initial determination of such assessment
is personally approved (in writing) by the immediate supervisor
of the individual making such determination or such higher
level official as the Secretary may designate.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply to—
‘‘(A) any addition to tax under section 6651, 6654,
or 6655; or
‘‘(B) any other penalty automatically calculated
through electronic means.
‘‘(c) PENALTIES.—For purposes of this section, the term ‘penalty’
includes any addition to tax or any additional amount.’’.
item:
‘‘SUBCHAPTER C. Procedural requirements.’’.
26 USC 6751 shall apply to notices issued, and penalties assessed, after December
note. 31, 2000.
SEC. 3307. PERSONAL DELIVERY OF NOTICE OF PENALTY UNDER
SECTION 6672.
(a) IN GENERAL.—Paragraph (1) of section 6672(b) (relating
to failure to collect and pay over tax, or attempt to evade or
defeat tax) is amended by inserting ‘‘or in person’’ after ‘‘section
6212(b)’’.
(1) Paragraph (2) of section 6672(b) is amended by inserting
‘‘(or, in the case of such a notice delivered in person, such
delivery)’’ after ‘‘paragraph (1)’’.
(2) Paragraph (3) of section 6672(b) is amended by inserting
‘‘or delivered in person’’ after ‘‘mailed’’ each place it appears.
SEC. 3308. NOTICE OF INTEREST CHARGES.
(a) IN GENERAL.—Chapter 67 (relating to interest) is amended
by adding at the end the following new subchapter:
‘‘Subchapter D—Notice requirements
‘‘Sec. 6631. Notice requirements.
‘‘SEC. 6631. NOTICE REQUIREMENTS.

‘‘The Secretary shall include with each notice to an individual
taxpayer which includes an amount of interest required to be paid
by such taxpayer under this title information with respect to the
section of this title under which the interest is imposed and a
computation of the interest.’’.
item:
‘‘SUBCHAPTER D. Notice requirements.’’.
shall apply to notices issued after December 31, 2000. 26 USC 6631
note.
SEC. 3309. ABATEMENT OF INTEREST ON UNDERPAYMENTS BY
TAXPAYERS IN PRESIDENTIALLY DECLARED DISASTER
AREAS.
(a) IN GENERAL.—Section 6404 (relating to abatements), as
amended by section 3305, is amended by redesignating subsection
(h) as subsection (i) and by inserting after subsection (g) the follow-
ing new subsection:
‘‘(h) ABATEMENT OF INTEREST ON UNDERPAYMENTS BY
TAXPAYERS IN PRESIDENTIALLY DECLARED DISASTER AREAS.—
‘‘(1) IN GENERAL.—If the Secretary extends for any period
the time for filing income tax returns under section 6081 and
the time for paying income tax with respect to such returns
under section 6161 for any taxpayer located in a Presidentially
declared disaster area, the Secretary shall abate for such period
the assessment of any interest prescribed under section 6601
on such income tax.
‘‘(2) PRESIDENTIALLY DECLARED DISASTER AREA.—For
purposes of paragraph (1), the term ‘Presidentially declared
disaster area’ means, with respect to any taxpayer, any area
which the President has determined warrants assistance by
the Federal Government under the Disaster Relief and Emer-
gency Assistance Act.’’.
(b) EFFECTIVE DATE.—The amendment made by this section Applicability.
shall apply to disasters declared after December 31, 1997, with 26 USC 6404
respect to taxable years beginning after December 31, 1997. note.
(c) EMERGENCY DESIGNATION.— 26 USC 6404
(1) For the purposes of section 252(e) of the Balanced note.
Budget and Emergency Deficit Control Act, Congress designates
the provisions of this section as an emergency requirement.
(2) The amendments made by subsections (a) and (b) of
this section shall only take effect upon the transmittal by
the President to the Congress of a message designating the
provisions of subsections (a) and (b) as an emergency require-
ment pursuant to section 252(e) of the Balanced Budget and
Emergency Deficit Control Act.
Subtitle E—Protections for Taxpayers

Subject to Audit or Collection Activities
PART I—DUE PROCESS
SEC. 3401. DUE PROCESS IN INTERNAL REVENUE SERVICE COLLEC-
TION ACTIONS.
(a) NOTICE AND OPPORTUNITY FOR HEARING UPON FILING OF
NOTICE OF LIEN.—Subchapter C of chapter 64 (relating to lien
for taxes) is amended by inserting before the table of sections
the following:
‘‘Part I. Due process for liens.
‘‘Part II. Liens.
‘‘PART I—DUE PROCESS FOR LIENS

‘‘Sec. 6320. Notice and opportunity for hearing upon filing of notice of lien.
‘‘SEC. 6320. NOTICE AND OPPORTUNITY FOR HEARING UPON FILING
OF NOTICE OF LIEN.
‘‘(a) REQUIREMENT OF NOTICE.—
‘‘(1) IN GENERAL.—The Secretary shall notify in writing
the person described in section 6321 of the filing of a notice
of lien under section 6323.
‘‘(2) TIME AND METHOD FOR NOTICE.—The notice required
under paragraph (1) shall be—
‘‘(A) given in person;
‘‘(B) left at the dwelling or usual place of business
of such person; or
‘‘(C) sent by certified or registered mail to such person’s
last known address,
not more than 5 business days after the day of the filing
of the notice of lien.
‘‘(3) INFORMATION INCLUDED WITH NOTICE.—The notice
required under paragraph (1) shall include in simple and non-
technical terms—
‘‘(A) the amount of unpaid tax;
‘‘(B) the right of the person to request a hearing during
the 30-day period beginning on the day after the 5-day
period described in paragraph (2);
‘‘(C) the administrative appeals available to the tax-
payer with respect to such lien and the procedures relating
to such appeals; and
‘‘(D) the provisions of this title and procedures relating
to the release of liens on property.
‘‘(b) RIGHT TO FAIR HEARING.—
‘‘(1) IN GENERAL.—If the person requests a hearing under
subsection (a)(3)(B), such hearing shall be held by the Internal
Revenue Service Office of Appeals.
‘‘(2) ONE HEARING PER PERIOD.—A person shall be entitled
to only one hearing under this section with respect to the
taxable period to which the unpaid tax specified in subsection
(a)(3)(A) relates.
‘‘(3) IMPARTIAL OFFICER.—The hearing under this sub-
section shall be conducted by an officer or employee who has
had no prior involvement with respect to the unpaid tax speci-

fied in subsection (a)(3)(A) before the first hearing under this
section or section 6330. A taxpayer may waive the requirement
of this paragraph.
‘‘(4) COORDINATION WITH SECTION 6330.—To the extent prac-
ticable, a hearing under this section shall be held in conjunction
with a hearing under section 6330.
‘‘(c) CONDUCT OF HEARING; REVIEW; SUSPENSIONS.—For pur- Applicability.
poses of this section, subsections (c), (d) (other than paragraph
(2)(B) thereof), and (e) of section 6330 shall apply.
‘‘PART II—LIENS’’.
(b) NOTICE AND OPPORTUNITY FOR HEARING BEFORE LEVY.—
Subchapter D of chapter 64 (relating to seizure of property for
collection of taxes) is amended by inserting before the table of
sections the following:
‘‘Part I. Due process for collections.
‘‘Part II. Levy.
‘‘PART I—DUE PROCESS FOR COLLECTIONS

‘‘Sec. 6330. Notice and opportunity for hearing before levy.
‘‘SEC. 6330. NOTICE AND OPPORTUNITY FOR HEARING BEFORE LEVY.
‘‘(a) REQUIREMENT OF NOTICE BEFORE LEVY.—
‘‘(1) IN GENERAL.—No levy may be made on any property
or right to property of any person unless the Secretary has
notified such person in writing of their right to a hearing
under this section before such levy is made. Such notice shall
be required only once for the taxable period to which the
unpaid tax specified in paragraph (3)(A) relates.
‘‘(2) TIME AND METHOD FOR NOTICE.—The notice required
under paragraph (1) shall be—
‘‘(A) given in person;
‘‘(B) left at the dwelling or usual place of business
of such person; or
‘‘(C) sent by certified or registered mail, return receipt
requested, to such person’s last known address;
not less than 30 days before the day of the first levy with
respect to the amount of the unpaid tax for the taxable period.
‘‘(3) INFORMATION INCLUDED WITH NOTICE.—The notice
required under paragraph (1) shall include in simple and non-
technical terms—
‘‘(A) the amount of unpaid tax;
‘‘(B) the right of the person to request a hearing during
the 30-day period under paragraph (2); and
‘‘(C) the proposed action by the Secretary and the rights
of the person with respect to such action, including a brief
statement which sets forth—
‘‘(i) the provisions of this title relating to levy
and sale of property;
‘‘(ii) the procedures applicable to the levy and sale
of property under this title;
‘‘(iii) the administrative appeals available to the
taxpayer with respect to such levy and sale and the
procedures relating to such appeals;
‘‘(iv) the alternatives available to taxpayers which

could prevent levy on property (including installment
agreements under section 6159); and
‘‘(v) the provisions of this title and procedures
relating to redemption of property and release of liens
on property.
‘‘(b) RIGHT TO FAIR HEARING.—
‘‘(1) IN GENERAL.—If the person requests a hearing under
subsection (a)(3)(B), such hearing shall be held by the Internal
‘‘(2) ONE HEARING PER PERIOD.—A person shall be entitled
to only one hearing under this section with respect to the
taxable period to which the unpaid tax specified in subsection
(a)(3)(A) relates.
‘‘(3) IMPARTIAL OFFICER.—The hearing under this sub-
section shall be conducted by an officer or employee who has
had no prior involvement with respect to the unpaid tax speci-
fied in subsection (a)(3)(A) before the first hearing under this
section or section 6320. A taxpayer may waive the requirement
of this paragraph.
‘‘(c) MATTERS CONSIDERED AT HEARING.—In the case of any
hearing conducted under this section—
‘‘(1) REQUIREMENT OF INVESTIGATION.—The appeals officer
shall at the hearing obtain verification from the Secretary
that the requirements of any applicable law or administrative
procedure have been met.
‘‘(2) ISSUES AT HEARING.—
‘‘(A) IN GENERAL.—The person may raise at the hearing
any relevant issue relating to the unpaid tax or the pro-
posed levy, including—
‘‘(i) appropriate spousal defenses;
‘‘(ii) challenges to the appropriateness of collection
actions; and
‘‘(iii) offers of collection alternatives, which may
include the posting of a bond, the substitution of other
assets, an installment agreement, or an offer-in-com-
promise.
‘‘(B) UNDERLYING LIABILITY.—The person may also
raise at the hearing challenges to the existence or amount
of the underlying tax liability for any tax period if the
person did not receive any statutory notice of deficiency
for such tax liability or did not otherwise have an oppor-
tunity to dispute such tax liability.
‘‘(3) BASIS FOR THE DETERMINATION.—The determination
by an appeals officer under this subsection shall take into
consideration—
‘‘(A) the verification presented under paragraph (1);
‘‘(B) the issues raised under paragraph (2); and
‘‘(C) whether any proposed collection action balances
the need for the efficient collection of taxes with the legiti-
mate concern of the person that any collection action be
no more intrusive than necessary.
‘‘(4) CERTAIN ISSUES PRECLUDED.—An issue may not be
raised at the hearing if—
‘‘(A) the issue was raised and considered at a previous
hearing under section 6320 or in any other previous
administrative or judicial proceeding; and
‘‘(B) the person seeking to raise the issue participated

meaningfully in such hearing or proceeding.
This paragraph shall not apply to any issue with respect to
which subsection (d)(2)(B) applies.
‘‘(d) PROCEEDING AFTER HEARING.—
‘‘(1) JUDICIAL REVIEW OF DETERMINATION.—The person may,
within 30 days of a determination under this section, appeal
such determination—
‘‘(A) to the Tax Court (and the Tax Court shall have
jurisdiction to hear such matter); or
‘‘(B) if the Tax Court does not have jurisdiction of
the underlying tax liability, to a district court of the United
States.
If a court determines that the appeal was to an incorrect
court, a person shall have 30 days after the court determination
to file such appeal with the correct court.
‘‘(2) JURISDICTION RETAINED AT IRS OFFICE OF APPEALS.—
The Internal Revenue Service Office of Appeals shall retain
jurisdiction with respect to any determination made under this
section, including subsequent hearings requested by the person
who requested the original hearing on issues regarding—
‘‘(A) collection actions taken or proposed with respect
to such determination; and
‘‘(B) after the person has exhausted all administrative
remedies, a change in circumstances with respect to such
person which affects such determination.
‘‘(e) SUSPENSION OF COLLECTIONS AND STATUTE OF LIMITA-
TIONS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
if a hearing is requested under subsection (a)(3)(B), the levy
actions which are the subject of the requested hearing and
the running of any period of limitations under section 6502
(relating to collection after assessment), section 6531 (relating
to criminal prosecutions), or section 6532 (relating to other
suits) shall be suspended for the period during which such
hearing, and appeals therein, are pending. In no event shall
any such period expire before the 90th day after the day on
which there is a final determination in such hearing.
‘‘(2) LEVY UPON APPEAL.—Paragraph (1) shall not apply
to a levy action while an appeal is pending if the underlying
tax liability is not at issue in the appeal and the court deter-
mines that the Secretary has shown good cause not to suspend
the levy.
‘‘(f ) JEOPARDY AND STATE REFUND COLLECTION.—If—
‘‘(1) the Secretary has made a finding under the last sen-
tence of section 6331(a) that the collection of tax is in jeopardy;
or
‘‘(2) the Secretary has served a levy on a State to collect
a Federal tax liability from a State tax refund,
this section shall not apply, except that the taxpayer shall be
given the opportunity for the hearing described in this section
within a reasonable period of time after the levy.
‘‘PART II—LEVY’’.
(c) REVIEW BY SPECIAL TRIAL JUDGES ALLOWED.—
(1) IN GENERAL.—Section 7443(b) (relating to proceedings

which may be assigned to special trial judges) is amended
by striking ‘‘and’’ at the end of paragraph (3), by redesignating
paragraph (4) as paragraph (5), and by inserting after para-
graph (3) the following new paragraph:
‘‘(4) any proceeding under section 6320 or 6330, and’’.
(2) AUTHORITY TO MAKE DECISIONS.—Section 7443(c) (relat-
ing to authority to make court decisions) is amended by striking
‘‘or (3)’’ and inserting ‘‘(3), or (4)’’.
Applicability. (d) EFFECTIVE DATE.—The amendments made by this section
26 USC 6320 shall apply to collection actions initiated after the date which is
note. 180 days after the date of the enactment of this Act.
PART II—EXAMINATION ACTIVITIES

SEC. 3411. CONFIDENTIALITY PRIVILEGES RELATING TO TAXPAYER
COMMUNICATIONS.
(a) IN GENERAL.—Chapter 77 (relating to miscellaneous provi-
sions) is amended by adding at the end the following new section:
‘‘SEC. 7525. CONFIDENTIALITY PRIVILEGES RELATING TO TAXPAYER
COMMUNICATIONS.
‘‘(a) UNIFORM APPLICATION TO TAXPAYER COMMUNICATIONS
WITH FEDERALLY AUTHORIZED PRACTITIONERS.—
‘‘(1) GENERAL RULE.—With respect to tax advice, the same
common law protections of confidentiality which apply to a
communication between a taxpayer and an attorney shall also
apply to a communication between a taxpayer and any federally
authorized tax practitioner to the extent the communication
would be considered a privileged communication if it were
between a taxpayer and an attorney.
‘‘(2) LIMITATIONS.—Paragraph (1) may only be asserted in—
‘‘(A) any noncriminal tax matter before the Internal
Revenue Service; and
‘‘(B) any noncriminal tax proceeding in Federal court
brought by or against the United States.
‘‘(3) DEFINITIONS.—For purposes of this subsection—
‘‘(A) FEDERALLY AUTHORIZED TAX PRACTITIONER.—The
term ‘federally authorized tax practitioner’ means any
individual who is authorized under Federal law to practice
before the Internal Revenue Service if such practice is
subject to Federal regulation under section 330 of title
31, United States Code.
‘‘(B) TAX ADVICE.—The term ‘tax advice’ means advice
given by an individual with respect to a matter which
is within the scope of the individual’s authority to practice
described in subparagraph (A).
‘‘(b) SECTION NOT TO APPLY TO COMMUNICATIONS REGARDING
CORPORATE TAX SHELTERS.—The privilege under subsection (a)
shall not apply to any written communication between a federally
authorized tax practitioner and a director, shareholder, officer, or
employee, agent, or representative of a corporation in connection
with the promotion of the direct or indirect participation of such
corporation in any tax shelter (as defined in section
6662(d)(2)(C)(iii)).’’.
(b) CONFORMING AMENDMENT.—The table of sections for such

item:
‘‘Sec. 7525. Confidentiality privileges relating to taxpayer communica-
tions.’’.
shall apply to communications made on or after the date of the 26 USC 7525
note.
enactment of this Act.
SEC. 3412. LIMITATION ON FINANCIAL STATUS AUDIT TECHNIQUES.
Section 7602 (relating to examination of books and witnesses)
is amended by adding at the end the following new subsection:
‘‘(d) LIMITATION ON EXAMINATION ON UNREPORTED INCOME.—
The Secretary shall not use financial status or economic reality
examination techniques to determine the existence of unreported
income of any taxpayer unless the Secretary has a reasonable
indication that there is a likelihood of such unreported income.’’.
SEC. 3413. SOFTWARE TRADE SECRETS PROTECTION.
(a) IN GENERAL.—Subchapter A of chapter 78 (relating to exam-
ination and inspection) is amended by redesignating section 7612
as section 7613 and by inserting after 7611 the following new
section:
‘‘SEC. 7612. SPECIAL PROCEDURES FOR SUMMONSES FOR COMPUTER
SOFTWARE.
‘‘(a) GENERAL RULE.—For purposes of this title—
‘‘(1) except as provided in subsection (b), no summons may
be issued under this title, and the Secretary may not begin
any action under section 7604 to enforce any summons to
produce or analyze any tax-related computer software source
code; and
‘‘(2) any software and related materials which are provided
to the Secretary under this title shall be subject to the safe-
guards under subsection (c).
‘‘(b) CIRCUMSTANCES UNDER WHICH COMPUTER SOFTWARE
SOURCE CODE MAY BE PROVIDED.—
‘‘(1) IN GENERAL.—Subsection (a)(1) shall not apply to any
portion, item, or component of tax-related computer software
source code if—
‘‘(A) the Secretary is unable to otherwise reasonably
ascertain the correctness of any item on a return from—
‘‘(i) the taxpayer’s books, papers, records, or other
data; or
‘‘(ii) the computer software executable code (and
any modifications thereof) to which such source code
relates and any associated data which, when executed,
produces the output to ascertain the correctness of
the item;
‘‘(B) the Secretary identifies with reasonable specificity
the portion, item, or component of such source code needed
to verify the correctness of such item on the return; and
‘‘(C) the Secretary determines that the need for the
portion, item, or component of such source code with respect
to such item outweighs the risks of unauthorized disclosure
of trade secrets.
‘‘(2) EXCEPTIONS.—Subsection (a)(1) shall not apply to—
‘‘(A) any inquiry into any offense connected with the

administration or enforcement of the internal revenue laws;
‘‘(B) any tax-related computer software source code
acquired or developed by the taxpayer or a related person
primarily for internal use by the taxpayer or such person
rather than for commercial distribution;
‘‘(C) any communications between the owner of the
tax-related computer software source code and the taxpayer
or related persons; or
‘‘(D) any tax-related computer software source code
which is required to be provided or made available pursu-
ant to any other provision of this title.
‘‘(3) COOPERATION REQUIRED.—For purposes of paragraph
(1), the Secretary shall be treated as meeting the requirements
of subparagraphs (A) and (B) of such paragraph if—
‘‘(A) the Secretary determines that it is not feasible
to determine the correctness of an item without access
to the computer software executable code and associated
data described in paragraph (1)(A)(ii);
‘‘(B) the Secretary makes a formal request to the tax-
payer for such code and data and to the owner of the
computer software source code for such executable code;
and
‘‘(C) such code and data is not provided within 180
days of such request.
Courts. ‘‘(4) RIGHT TO CONTEST SUMMONS.—In any proceeding
brought under section 7604 to enforce a summons issued under
the authority of this subsection, the court shall, at the request
of any party, hold a hearing to determine whether the
applicable requirements of this subsection have been met.
‘‘(c) SAFEGUARDS TO ENSURE PROTECTION OF TRADE SECRETS
AND OTHER CONFIDENTIAL INFORMATION.—
‘‘(1) ENTRY OF PROTECTIVE ORDER.—In any court proceeding
to enforce a summons for any portion of software, the court
may receive evidence and issue any order necessary to prevent
the disclosure of trade secrets or other confidential information
with respect to such software, including requiring that any
information be placed under seal to be opened only as directed
by the court.
‘‘(2) PROTECTION OF SOFTWARE.—Notwithstanding any
other provision of this section, and in addition to any protections
ordered pursuant to paragraph (1), in the case of software
that comes into the possession or control of the Secretary in
the course of any examination with respect to any taxpayer—
‘‘(A) the software may be used only in connection with
the examination of such taxpayer’s return, any appeal by
the taxpayer to the Internal Revenue Service Office of
Appeals, any judicial proceeding (and any appeals there-
from), and any inquiry into any offense connected with
the administration or enforcement of the internal revenue
laws;
‘‘(B) the Secretary shall provide, in advance, to the
taxpayer and the owner of the software a written list
of the names of all individuals who will analyze or other-
wise have access to the software;
‘‘(C) the software shall be maintained in a secure area
or place, and, in the case of computer software source
code, shall not be removed from the owner’s place of busi-

ness unless the owner permits, or a court orders, such
removal;
‘‘(D) the software may not be copied except as necessary
to perform such analysis, and the Secretary shall number
all copies made and certify in writing that no other copies
have been (or will be) made;
‘‘(E) at the end of the period during which the software
may be used under subparagraph (A)—
‘‘(i) the software and all copies thereof shall be
returned to the person from whom they were obtained
and any copies thereof made under subparagraph (D)
on the hard drive of a machine or other mass storage
device shall be permanently deleted; and
‘‘(ii) the Secretary shall obtain from any person
who analyzes or otherwise had access to such software
a written certification under penalty of perjury that
all copies and related materials have been returned
and that no copies were made of them;
‘‘(F) the software may not be decompiled or disassem-
bled;
‘‘(G) the Secretary shall provide to the taxpayer and
the owner of any interest in such software, as the case
may be, a written agreement, between the Secretary and
any person who is not an officer or employee of the United
States and who will analyze or otherwise have access to
such software, which provides that such person agrees
not to—
‘‘(i) disclose such software to any person other
than persons to whom such information could be dis-
closed for tax administration purposes under section
6103; or
‘‘(ii) participate for 2 years in the development
of software which is intended for a similar purpose
as the software examined; and
‘‘(H) the software shall be treated as return information
for purposes of section 6103.
For purposes of subparagraph (C), the owner shall make avail-
able any necessary equipment or materials for analysis of com-
puter software source code required to be conducted on the
owner’s premises. The owner of any interest in the software
shall be considered a party to any agreement described in
subparagraph (G).
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) SOFTWARE.—The term ‘software’ includes computer
software source code and computer software executable code.
‘‘(2) COMPUTER SOFTWARE SOURCE CODE.—The term ‘com-
puter software source code’ means—
‘‘(A) the code written by a programmer using a
programming language which is comprehensible to appro-
priately trained persons and is not capable of directly being
used to give instructions to a computer;
‘‘(B) related programmers’ notes, design documents,
memoranda, and similar documentation; and
‘‘(C) related customer communications.
‘‘(3) COMPUTER SOFTWARE EXECUTABLE CODE.—The term
‘computer software executable code’ means—
‘‘(A) any object code, machine code, or other code read-

able by a computer when loaded into its memory and
used directly by such computer to execute instructions;
and
‘‘(B) any related user manuals.
‘‘(4) OWNER.—The term ‘owner’ shall, with respect to any
software, include the developer of the software.
‘‘(5) RELATED PERSON.—A person shall be treated as related
to another person if such persons are related persons under
section 267 or 707(b).
‘‘(6) TAX-RELATED COMPUTER SOFTWARE SOURCE CODE.—
The term ‘tax-related computer software source code’ means
the computer source code for any computer software program
intended for accounting, tax return preparation or compliance,
or tax planning.’’.
(b) UNAUTHORIZED DISCLOSURE OF SOFTWARE.—Section 7213
(relating to unauthorized disclosure of information) is amended
by redesignating subsection (d) as subsection (e) and by inserting
after subsection (c) the following new subsection:
‘‘(d) DISCLOSURE OF SOFTWARE.—Any person who willfully
divulges or makes known software (as defined in section 7612(d)(1))
to any person in violation of section 7612 shall be guilty of a
felony and, upon conviction thereof, shall be fined not more than
$5,000, or imprisoned not more than 5 years, or both, together
with the costs of prosecution.’’.
(c) APPLICATION OF SPECIAL PROCEDURES FOR THIRD-PARTY
SUMMONSES.—Paragraph (2) of section 7603(b), as amended by
section 3416(a), is amended by striking ‘‘and’’ at the end of subpara-
graph (H), by striking a period at the end of subparagraph (I)
and inserting ‘‘, and’’, and by adding at the end the following
new subparagraph:
‘‘(J) any owner or developer of a computer software
source code (as defined in section 7612(d)(2)).
Applicability. Subparagraph (J) shall apply only with respect to a summons
requiring the production of the source code referred to in
subparagraph (J) or the program and data described in section
7612(b)(1)(A)(ii) to which such source code relates.’’.
(d) CONFORMING AMENDMENT.—The table of sections for sub-
chapter A of chapter 78 is amended by striking the item relating
to section 7612 and by inserting the following new item:
‘‘Sec. 7612. Special procedures for summonses for computer software.
‘‘Sec. 7613. Cross references.’’.
Applicability. (e) EFFECTIVE DATE.—
26 USC 7612 (1) IN GENERAL.—The amendments made by this section
note. shall apply to summonses issued, and software acquired, after
the date of the enactment of this Act.
(2) SOFTWARE PROTECTION.—In the case of any software
acquired on or before such date of enactment, the requirements
of section 7612(a)(2) of the Internal Revenue Code of 1986
(as added by such amendments) shall apply after the 90th
day after such date. The preceding sentence shall not apply
to the requirement under section 7612(c)(2)(G)(ii) of such Code
(as so added).
SEC. 3414. THREAT OF AUDIT PROHIBITED TO COERCE TIP REPORTING 26 USC 6053
ALTERNATIVE COMMITMENT AGREEMENTS. note.
The Secretary of the Treasury or the Secretary’s delegate shall

instruct employees of the Internal Revenue Service that they may
not threaten to audit any taxpayer in an attempt to coerce the
taxpayer into entering into a Tip Reporting Alternative Commit-
ment Agreement.
SEC. 3415. TAXPAYERS ALLOWED MOTION TO QUASH ALL THIRD-PARTY
SUMMONSES.
(a) IN GENERAL.—Paragraph (1) of section 7609(a) (relating
to summonses to which section applies) is amended by striking
so much of such paragraph as precedes ‘‘notice of the summons’’
and inserting the following:
‘‘(1) IN GENERAL.—If any summons to which this section
applies requires the giving of testimony on or relating to, the
production of any portion of records made or kept on or relating
to, or the production of any computer software source code
(as defined in 7612(d)(2)) with respect to, any person (other
than the person summoned) who is identified in the summons,
then’’.
(b) COORDINATION WITH OTHER AUTHORITY.—Section 7609
(relating to special procedures for third-party summonses) is amend-
ed by adding at the end the following new subsection:
‘‘( j) USE OF SUMMONS NOT REQUIRED.—Nothing in this section
shall be construed to limit the Secretary’s ability to obtain informa-
tion, other than by summons, through formal or informal procedures
authorized by sections 7601 and 7602.’’.
(1) Subsection (a) of section 7609 is amended by striking
paragraphs (3) and (4), by redesignating paragraph (5) as para-
graph (3), and by striking in paragraph (3) (as so redesignated)
‘‘subsection (c)(2)(B)’’ and inserting ‘‘subsection (c)(2)(D)’’.
(2) Subsection (c) of section 7609 is amended to read as
follows:
‘‘(c) SUMMONS TO WHICH SECTION APPLIES.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
this section shall apply to any summons issued under para-
graph (2) of section 7602(a) or under section 6420(e)(2),
6421(g)(2), 6427( j)(2), or 7612.
‘‘(2) EXCEPTIONS.—This section shall not apply to any
summons—
‘‘(A) served on the person with respect to whose liability
the summons is issued, or any officer or employee of such
person;
‘‘(B) issued to determine whether or not records of
the business transactions or affairs of an identified person
have been made or kept;
‘‘(C) issued solely to determine the identity of any
person having a numbered account (or similar arrange-
ment) with a bank or other institution described in section
7603(b)(2)(A);
‘‘(D) issued in aid of the collection of—
‘‘(i) an assessment made or judgment rendered
against the person with respect to whose liability the
summons is issued; or
‘‘(ii) the liability at law or in equity of any trans-

feree or fiduciary of any person referred to in clause
(i);
‘‘(E)(i) issued by a criminal investigator of the Internal
Revenue Service in connection with the investigation of
an offense connected with the administration or enforce-
ment of the internal revenue laws; and
‘‘(ii) served on any person who is not a third-party
recordkeeper (as defined in section 7603(b)); or
‘‘(F) described in subsection (f ) or (g).
‘‘(3) RECORDS.—For purposes of this section, the term
‘records’ includes books, papers, and other data.’’.
(3) Paragraph (2) of section 7609(e) is amended by striking
‘‘third-party recordkeeper’s’’ and all that follows through ‘‘sub-
section (f )’’ and inserting ‘‘summoned party’s response to the
summons’’.
(4) Subsection (f ) of section 7609 is amended—
(A) by striking ‘‘described in subsection (c)’’ and insert-
ing ‘‘described in subsection (c)(1)’’; and
(B) by inserting ‘‘or testimony’’ after ‘‘records’’ in para-
graph (3).
(5) Subsection (g) of section 7609 is amended by striking
‘‘In the case of any summons described in subsection (c), the
provisions of subsections (a)(1) and (b) shall not apply if ’’ and
inserting ‘‘A summons is described in this subsection if ’’.
(6)(A) Subsection (i) of section 7609 is amended by striking
‘‘THIRD-PARTY RECORDKEEPER AND’’ in the subsection heading.
(B) Paragraph (1) of section 7609(i) is amended by striking
‘‘described in subsection (c), the third-party recordkeeper’’ and
inserting ‘‘to which this section applies for the production of
records, the summoned party’’.
(C) Paragraph (2) of section 7609(i) is amended—
(i) by striking ‘‘RECORDKEEPER’’ in the heading and
inserting ‘‘SUMMONED PARTY’’; and
(ii) by striking ‘‘the third-party recordkeeper’’ and
inserting ‘‘the summoned party’’.
(D) Paragraph (3) of section 7609(i) is amended to read
as follows:
‘‘(3) PROTECTION FOR SUMMONED PARTY WHO DISCLOSES.—
Any summoned party, or agent or employee thereof, making
a disclosure of records or testimony pursuant to this section
in good faith reliance on the certificate of the Secretary or
an order of a court requiring production of records or the
giving of such testimony shall not be liable to any customer
or other person for such disclosure.’’.
Applicability. (d) EFFECTIVE DATE.—The amendments made by this section
26 USC 7609 shall apply to summonses served after the date of the enactment
note.
of this Act.
SEC. 3416. SERVICE OF SUMMONSES TO THIRD-PARTY RECORD-
KEEPERS PERMITTED BY MAIL.
(a) IN GENERAL.—Section 7603 (relating to service of summons)
is amended by striking ‘‘A summons issued’’ and inserting ‘‘(a)
IN GENERAL.—A summons issued’’ and by adding at the end the
following new subsection:
‘‘(b) SERVICE BY MAIL TO THIRD-PARTY RECORDKEEPERS.—
‘‘(1) IN GENERAL.—A summons referred to in subsection

(a) for the production of books, papers, records, or other data
by a third-party recordkeeper may also be served by certified
or registered mail to the last known address of such record-
keeper.
‘‘(2) THIRD-PARTY RECORDKEEPER.—For purposes of para-
graph (1), the term ‘third-party recordkeeper’ means—
‘‘(A) any mutual savings bank, cooperative bank,
domestic building and loan association, or other savings
institution chartered and supervised as a savings and loan
or similar association under Federal or State law, any
bank (as defined in section 581), or any credit union (within
the meaning of section 501(c)(14)(A));
‘‘(B) any consumer reporting agency (as defined under
section 603(f ) of the Fair Credit Reporting Act (15 U.S.C.
1681a(f )));
‘‘(C) any person extending credit through the use of
credit cards or similar devices;
‘‘(D) any broker (as defined in section 3(a)(4) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)));
‘‘(E) any attorney;
‘‘(F) any accountant;
‘‘(G) any barter exchange (as defined in section
6045(c)(3));
‘‘(H) any regulated investment company (as defined
in section 851) and any agent of such regulated investment
company when acting as an agent thereof, and
‘‘(I) any enrolled agent.’’.
shall apply to summonses served after the date of the enactment 26 USC 7603
note.
of this Act.
SEC. 3417. NOTICE OF INTERNAL REVENUE SERVICE CONTACT OF
THIRD PARTIES.
(a) IN GENERAL.—Section 7602 (relating to examination of books
and witnesses), as amended by section 3412, is amended by
redesignating subsections (c) and (d) as subsections (d) and (e),
respectively, and by inserting after subsection (b) the following
new subsection:
‘‘(c) NOTICE OF CONTACT OF THIRD PARTIES.—
‘‘(1) GENERAL NOTICE.—An officer or employee of the
Internal Revenue Service may not contact any person other
than the taxpayer with respect to the determination or collec-
tion of the tax liability of such taxpayer without providing
reasonable notice in advance to the taxpayer that contacts
with persons other than the taxpayer may be made.
‘‘(2) NOTICE OF SPECIFIC CONTACTS.—The Secretary shall Records.
periodically provide to a taxpayer a record of persons contacted
during such period by the Secretary with respect to the deter-
mination or collection of the tax liability of such taxpayer.
Such record shall also be provided upon request of the taxpayer.
‘‘(3) EXCEPTIONS.—This subsection shall not apply—
‘‘(A) to any contact which the taxpayer has authorized;
‘‘(B) if the Secretary determines for good cause
shown that such notice would jeopardize collection of any
tax or such notice may involve reprisal against any person;
or
‘‘(C) with respect to any pending criminal investiga-

tion.’’.
Applicability. (b) EFFECTIVE DATE.—The amendments made by subsection
26 USC 7602 (a) shall apply to contacts made after the 180th day after the
note. date of the enactment of this Act.
PART III—COLLECTION ACTIVITIES

Subpart A—Approval Process
26 USC 6301 SEC. 3421. APPROVAL PROCESS FOR LIENS, LEVIES, AND SEIZURES.
note.
Procedures. (a) IN GENERAL.—The Commissioner of Internal Revenue shall
develop and implement procedures under which—
(1) a determination by an employee to file a notice of
lien or levy with respect to, or to levy or seize, any property
or right to property would, where appropriate, be required
to be reviewed by a supervisor of the employee before the
action was taken; and
(2) appropriate disciplinary action would be taken against
the employee or supervisor where the procedures under para-
graph (1) were not followed.
(b) REVIEW PROCESS.—The review process under subsection
(a)(1) may include a certification that the employee has—
(1) reviewed the taxpayer’s information;
(2) verified that a balance is due; and
(3) affirmed that the action proposed to be taken is appro-
priate given the taxpayer’s circumstances, considering the
amount due and the value of the property or right to property.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), this
section shall take effect on the date of the enactment of this
Act.
Applicability. (2) AUTOMATED COLLECTION SYSTEM ACTIONS.—In the case
of any action under an automated collection system, this section
shall apply to actions initiated after December 31, 2000.
Subpart B—Liens and Levies

SEC. 3431. MODIFICATIONS TO CERTAIN LEVY EXEMPTION AMOUNTS.
(a) FUEL, ETC.—Section 6334(a)(2) (relating to fuel, provisions,
furniture, and personal effects) is amended by striking ‘‘$2,500’’
and inserting ‘‘$6,250’’.
(b) BOOKS, ETC.—Section 6334(a)(3) (relating to books and tools
of a trade, business, or profession) is amended by striking ‘‘$1,250’’
and inserting ‘‘$3,125’’.
(c) CONFORMING AMENDMENT.—Section 6334(g)(1) (relating to
inflation adjustment) is amended—
(1) by striking ‘‘1997’’ and inserting ‘‘1999’’; and
(2) by striking ‘‘1996’’ in subparagraph (B) and inserting
‘‘1998’’.
26 USC 6334 (d) EFFECTIVE DATE.—The amendments made by this section
note. shall take effect with respect to levies issued after the date of
the enactment of this Act.
SEC. 3432. RELEASE OF LEVY UPON AGREEMENT THAT AMOUNT IS
UNCOLLECTIBLE.
(a) IN GENERAL.—Section 6343 (relating to authority to release
levy and return property) is amended by adding at the end the
‘‘(e) RELEASE OF LEVY UPON AGREEMENT THAT AMOUNT IS
NOT COLLECTIBLE.—In the case of a levy on the salary or wages
payable to or received by the taxpayer, upon agreement with the
taxpayer that the tax is not collectible, the Secretary shall release
such levy as soon as practicable.’’.
shall apply to levies imposed after December 31, 1999. 26 USC 6343
note.
SEC. 3433. LEVY PROHIBITED DURING PENDENCY OF REFUND
PROCEEDINGS.
(a) IN GENERAL.—Section 6331 (relating to levy and distraint)
is amended by redesignating subsection (i) as subsection ( j) and
by inserting after subsection (h) the following new subsection:
‘‘(i) NO LEVY DURING PENDENCY OF PROCEEDINGS FOR REFUND
OF DIVISIBLE TAX.—
‘‘(1) IN GENERAL.—No levy may be made under subsection
(a) on the property or rights to property of any person with
respect to any unpaid divisible tax during the pendency of
any proceeding brought by such person in a proper Federal
trial court for the recovery of any portion of such divisible
tax which was paid by such person if—
‘‘(A) the decision in such proceeding would be res judi-
cata with respect to such unpaid tax; or
‘‘(B) such person would be collaterally estopped from
contesting such unpaid tax by reason of such proceeding.
‘‘(2) DIVISIBLE TAX.—For purposes of paragraph (1), the
term ‘divisible tax’ means—
‘‘(A) any tax imposed by subtitle C; and
‘‘(B) the penalty imposed by section 6672 with respect
to any such tax.
‘‘(3) EXCEPTIONS.—
‘‘(A) CERTAIN UNPAID TAXES.—This subsection shall not
apply with respect to any unpaid tax if—
‘‘(i) the taxpayer files a written notice with the
Secretary which waives the restriction imposed by this
subsection on levy with respect to such tax; or
‘‘(ii) the Secretary finds that the collection of such
tax is in jeopardy.
‘‘(B) CERTAIN LEVIES.—This subsection shall not
apply to—
‘‘(i) any levy to carry out an offset under section
6402; and
‘‘(ii) any levy which was first made before the
date that the applicable proceeding under this sub-
section commenced.
‘‘(4) LIMITATION ON COLLECTION ACTIVITY; AUTHORITY TO
ENJOIN COLLECTION.—
‘‘(A) LIMITATION ON COLLECTION.—No proceeding in
court for the collection of any unpaid tax to which para-
graph (1) applies shall be begun by the Secretary during
the pendency of a proceeding under such paragraph. This
subparagraph shall not apply to—
‘‘(i) any counterclaim in a proceeding under such

paragraph; or
‘‘(ii) any proceeding relating to a proceeding under
such paragraph.
‘‘(B) AUTHORITY TO ENJOIN.—Notwithstanding section
7421(a), a levy or collection proceeding prohibited by this
subsection may be enjoined (during the period such prohibi-
tion is in force) by the court in which the proceeding
under paragraph (1) is brought.
‘‘(5) SUSPENSION OF STATUTE OF LIMITATIONS ON COLLEC-
TION.—The period of limitations under section 6502 shall be
suspended for the period during which the Secretary is prohib-
ited under this subsection from making a levy.
‘‘(6) PENDENCY OF PROCEEDING.—For purposes of this sub-
section, a proceeding is pending beginning on the date such
proceeding commences and ending on the date that a final
order or judgment from which an appeal may be taken is
entered in such proceeding.’’.
26 USC 6331 (b) EFFECTIVE DATE.—The amendment made by this section
note. shall apply to unpaid tax attributable to taxable periods beginning
after December 31, 1998.
SEC. 3434. APPROVAL REQUIRED FOR JEOPARDY AND TERMINATION
ASSESSMENTS AND JEOPARDY LEVIES.
(a) IN GENERAL.—Paragraph (1) of section 7429(a) (relating
to review of jeopardy levy or assessment procedures) is amended
to read as follows:
‘‘(1) ADMINISTRATIVE REVIEW.—
‘‘(A) PRIOR APPROVAL REQUIRED.—No assessment may
be made under section 6851(a), 6852(a), 6861(a), or 6862,
and no levy may be made under section 6331(a) less than
30 days after notice and demand for payment is made,
unless the Chief Counsel for the Internal Revenue Service
(or such Counsel’s delegate) personally approves (in writ-
ing) such assessment or levy.
‘‘(B) INFORMATION TO TAXPAYER.—Within 5 days after
the day on which such an assessment or levy is made,
the Secretary shall provide the taxpayer with a written
statement of the information upon which the Secretary
relied in making such assessment or levy.’’.
26 USC 7429 shall apply to taxes assessed and levies made after the date of
note. the enactment of this Act.
SEC. 3435. INCREASE IN AMOUNT OF CERTAIN PROPERTY ON WHICH
LIEN NOT VALID.
(a) CERTAIN PROPERTY.—
(1) IN GENERAL.—Subsection (b) of section 6323 (relating
to validity and priority against certain persons) is amended—
(A) by striking ‘‘$250’’ in paragraph (4) (relating to
personal property purchased in casual sale) and inserting
‘‘$1,000’’; and
(B) by striking ‘‘$1,000’’ in paragraph (7) (relating to
residential property subject to a mechanic’s lien for certain
repairs and improvements) and inserting ‘‘$5,000’’.
(2) INFLATION ADJUSTMENT.—Subsection (i) of section 6323
(relating to special rules) is amended by adding at the end
the following new paragraph:
‘‘(4) COST-OF-LIVING ADJUSTMENT.—In the case of notices

of liens imposed by section 6321 which are filed in any calendar
year after 1998, each of the dollar amounts under paragraph
(4) or (7) of subsection (b) shall be increased by an amount
equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f )(3) for the calendar year, determined by
substituting ‘calendar year 1996’ for ‘calendar year 1992’
in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence is
not a multiple of $10, such amount shall be rounded to the
nearest multiple of $10.’’.
(b) EXPANSION OF TREATMENT OF PASSBOOK LOANS.—Paragraph
(10) of section 6323(b) is amended—
(1) by striking ‘‘PASSBOOK LOANS’’ in the heading and
inserting ‘‘DEPOSIT-SECURED LOANS’’;
(2) by striking ‘‘, evidenced by a passbook,’’; and
(3) by striking all that follows ‘‘secured by such account’’
and inserting a period.
SEC. 3436. WAIVER OF EARLY WITHDRAWAL TAX FOR INTERNAL REVE-
NUE SERVICE LEVIES ON EMPLOYER-SPONSORED
RETIREMENT PLANS OR IRAs.
(a) IN GENERAL.—Section 72(t)(2)(A) (relating to subsection not
to apply to certain distributions) is amended by striking ‘‘or’’ at
the end of clauses (iv) and (v), by striking the period at the end
of clause (vi) and inserting ‘‘, or’’, and by adding at the end the
following new clause:
‘‘(vii) made on account of a levy under section
6331 on the qualified retirement plan.’’.
(b) EFFECTIVE DATE.—The amendments made by this section Applicability.
shall apply to distributions after December 31, 1999. 26 USC 72 note.
Subpart C—Seizures
SEC. 3441. PROHIBITION OF SALES OF SEIZED PROPERTY AT LESS
THAN MINIMUM BID.
(a) IN GENERAL.—Section 6335(e)(1)(A)(i) (relating to deter-
minations relating to minimum price) is amended by striking ‘‘a
minimum price for which such property shall be sold’’ and inserting
‘‘a minimum price below which such property shall not be sold’’.
(b) REFERENCE TO PENALTY FOR VIOLATION.—Section 6335(e)
is amended by adding at the end the following new paragraph:
‘‘(4) CROSS REFERENCE.—
‘‘For provision providing for civil damages for violation of para-
graph (1)(A)(i), see section 7433.’’.
shall apply to sales made after the date of the enactment of this 26 USC 6335
note.
Act.
SEC. 3442. ACCOUNTING OF SALES OF SEIZED PROPERTY.
(a) IN GENERAL.—Section 6340 (relating to records of sale)
is amended—
(1) in subsection (a)—
(A) by striking ‘‘real’’; and

(B) by inserting ‘‘or certificate of sale of personal
property’’ after ‘‘deed’’; and
(2) by adding at the end the following new subsection:
‘‘(c) ACCOUNTING TO TAXPAYER.—The taxpayer with respect to
whose liability the sale was conducted or who redeemed the property
shall be furnished—
‘‘(1) the record under subsection (a) (other than the names
of the purchasers);
‘‘(2) the amount from such sale applied to the taxpayer’s
liability; and
‘‘(3) the remaining balance of such liability.’’.
Applicability. (b) EFFECTIVE DATE.—The amendments made by this section
26 USC 6340 shall apply to seizures occurring after the date of the enactment
note.
of this Act.
26 USC 6335 SEC. 3443. UNIFORM ASSET DISPOSAL MECHANISM.
note.
Deadline. Not later than the date which is 2 years after the date of
the enactment of this Act, the Secretary of the Treasury or the
Secretary’s delegate shall implement a uniform asset disposal
mechanism for sales under section 6335 of the Internal Revenue
Code of 1986. The mechanism should be designed to remove any
participation in such sales by revenue officers of the Internal Reve-
nue Service and should consider the use of outsourcing.
SEC. 3444. CODIFICATION OF INTERNAL REVENUE SERVICE ADMINIS-
TRATIVE PROCEDURES FOR SEIZURE OF TAXPAYER’S
PROPERTY.
(a) IN GENERAL.—Section 6331 (relating to levy and distraint),
as amended by section 3433, is amended by redesignating subsection
( j) as subsection (k) and by inserting after subsection (i) the follow-
ing new subsection:
‘‘( j) NO LEVY BEFORE INVESTIGATION OF STATUS OF PROPERTY.—
‘‘(1) IN GENERAL.—For purposes of applying the provisions
of this subchapter, no levy may be made on any property
or right to property which is to be sold under section 6335
until a thorough investigation of the status of such property
has been completed.
‘‘(2) ELEMENTS IN INVESTIGATION.—For purposes of para-
graph (1), an investigation of the status of any property shall
include—
‘‘(A) a verification of the taxpayer’s liability;
‘‘(B) the completion of an analysis under sub-
section (f );
‘‘(C) the determination that the equity in such property
is sufficient to yield net proceeds from the sale of such
property to apply to such liability; and
‘‘(D) a thorough consideration of alternative collection
methods.’’.
26 USC 6331 (b) EFFECTIVE DATE.—The amendments made by this section
SEC. 3445. PROCEDURES FOR SEIZURE OF RESIDENCES AND
BUSINESSES.
(a) IN GENERAL.—Section 6334(a)(13) (relating to property
exempt from levy) is amended to read as follows:
‘‘(13) RESIDENCES EXEMPT IN SMALL DEFICIENCY CASES AND

PRINCIPAL RESIDENCES AND CERTAIN BUSINESS ASSETS EXEMPT
IN ABSENCE OF CERTAIN APPROVAL OR JEOPARDY.—
‘‘(A) RESIDENCES IN SMALL DEFICIENCY CASES.—If the
amount of the levy does not exceed $5,000—
‘‘(i) any real property used as a residence by the
taxpayer; or
‘‘(ii) any real property of the taxpayer (other than
real property which is rented) used by any other
individual as a residence.
‘‘(B) PRINCIPAL RESIDENCES AND CERTAIN BUSINESS
ASSETS.—Except to the extent provided in subsection (e)—
‘‘(i) the principal residence of the taxpayer (within
the meaning of section 121); and
‘‘(ii) tangible personal property or real property
(other than real property which is rented) used in
the trade or business of an individual taxpayer.’’.
(b) LEVY ALLOWED IN CERTAIN CIRCUMSTANCES.—Section
6334(e) is amended to read as follows:
‘‘(e) LEVY ALLOWED ON PRINCIPAL RESIDENCES AND CERTAIN
BUSINESS ASSETS IN CERTAIN CIRCUMSTANCES.—
‘‘(1) PRINCIPAL RESIDENCES.—
‘‘(A) APPROVAL REQUIRED.—A principal residence shall
not be exempt from levy if a judge or magistrate of a
district court of the United States approves (in writing)
the levy of such residence.
‘‘(B) JURISDICTION.—The district courts of the United
States shall have exclusive jurisdiction to approve a levy
under subparagraph (A).
‘‘(2) CERTAIN BUSINESS ASSETS.—Property (other than a
principal residence) described in subsection (a)(13)(B) shall not
be exempt from levy if—
‘‘(A) a district director or assistant district director
of the Internal Revenue Service personally approves (in
writing) the levy of such property; or
‘‘(B) the Secretary finds that the collection of tax is
in jeopardy.
An official may not approve a levy under subparagraph (A)
unless the official determines that the taxpayer’s other assets
subject to collection are insufficient to pay the amount due,
together with expenses of the proceedings.’’.
(c) STATE FISH AND WILDLIFE PERMITS.— 26 USC 6334
(1) IN GENERAL.—With respect to permits issued by a State note.
and required under State law for the harvest of fish or wildlife
in the trade or business of an individual taxpayer, the term
‘‘other assets’’ as used in section 6334(e)(2) of the Internal
Revenue Code of 1986 shall include future income which may
be derived by such taxpayer from the commercial sale of fish
or wildlife under such permit.
(2) CONSTRUCTION.—Paragraph (1) shall not be construed
to invalidate or in any way prejudice any assertion that the
privilege embodied in permits described in paragraph (1) is
not property or a right to property under the Internal Revenue
Code of 1986.
(d) EFFECTIVE DATE.—The amendments made by this section 26 USC 6334
PART IV—PROVISIONS RELATING TO

EXAMINATION AND COLLECTION ACTIVITIES
SEC. 3461. PROCEDURES RELATING TO EXTENSIONS OF STATUTE OF
LIMITATIONS BY AGREEMENT.
(a) AUTHORITY TO EXTEND 10-YEAR COLLECTION PERIOD AFTER
ASSESSMENT.—Section 6502(a) (relating to length of period after
collection) is amended—
(1) by striking paragraph (2) and inserting:
‘‘(2) if—
‘‘(A) there is an installment agreement between the
taxpayer and the Secretary, prior to the date which is
90 days after the expiration of any period for collection
agreed upon in writing by the Secretary and the taxpayer
at the time the installment agreement was entered into;
or
‘‘(B) there is a release of levy under section 6343 after
such 10-year period, prior to the expiration of any period
for collection agreed upon in writing by the Secretary and
the taxpayer before such release.’’; and
(2) by striking the first sentence in the matter following
paragraph (2).
(b) NOTICE TO TAXPAYER OF RIGHT TO REFUSE OR LIMIT
EXTENSION.—Paragraph (4) of section 6501(c) (relating to the period
for limitations on assessment and collection) is amended—
(1) by striking ‘‘Where’’ and inserting the following:
‘‘(A) IN GENERAL.—Where’’; and
(2) by adding at the end the following new subparagraph:
‘‘(B) NOTICE TO TAXPAYER OF RIGHT TO REFUSE OR
LIMIT EXTENSION.—The Secretary shall notify the taxpayer
of the taxpayer’s right to refuse to extend the period of
limitations, or to limit such extension to particular issues
or to a particular period of time, on each occasion when
the taxpayer is requested to provide such consent.’’.
26 USC 6501 (c) EFFECTIVE DATE.—
note. (1) IN GENERAL.—The amendments made by this section
Applicability. shall apply to requests to extend the period of limitations
made after December 31, 1999.
Expiration date. (2) PRIOR REQUEST.—If, in any request to extend the period
of limitations made on or before December 31, 1999, a taxpayer
agreed to extend such period beyond the 10-year period referred
to in section 6502(a) of the Internal Revenue Code of 1986,
such extension shall expire on the latest of—
(A) the last day of such 10-year period;
(B) December 31, 2002; or
(C) in the case of an extension in connection with
an installment agreement, the 90th day after the end of
the period of such extension.
SEC. 3462. OFFERS-IN-COMPROMISE.
(a) STANDARDS FOR EVALUATION OF OFFERS-IN-COMPROMISE.—
Section 7122 (relating to offers-in-compromise) is amended by
adding at the end the following new subsection:
Guidelines. ‘‘(c) STANDARDS FOR EVALUATION OF OFFERS.—
‘‘(1) IN GENERAL.—The Secretary shall prescribe guidelines
for officers and employees of the Internal Revenue Service
to determine whether an offer-in-compromise is adequate and

should be accepted to resolve a dispute.
‘‘(2) ALLOWANCES FOR BASIC LIVING EXPENSES.—
‘‘(A) IN GENERAL.—In prescribing guidelines under Publication.
paragraph (1), the Secretary shall develop and publish
schedules of national and local allowances designed to pro-
vide that taxpayers entering into a compromise have an
adequate means to provide for basic living expenses.
‘‘(B) USE OF SCHEDULES.—The guidelines shall provide
that officers and employees of the Internal Revenue Service
shall determine, on the basis of the facts and circumstances
of each taxpayer, whether the use of the schedules pub-
lished under subparagraph (A) is appropriate and shall
not use the schedules to the extent such use would result
in the taxpayer not having adequate means to provide
for basic living expenses.
‘‘(3) SPECIAL RULES RELATING TO TREATMENT OF OFFERS.—
The guidelines under paragraph (1) shall provide that—
‘‘(A) an officer or employee of the Internal Revenue
Service shall not reject an offer-in-compromise from a low-
income taxpayer solely on the basis of the amount of the
offer; and
‘‘(B) in the case of an offer-in-compromise which relates
only to issues of liability of the taxpayer—
‘‘(i) such offer shall not be rejected solely because
the Secretary is unable to locate the taxpayer’s return
or return information for verification of such liability;
and
‘‘(ii) the taxpayer shall not be required to provide
a financial statement.’’.
(b) LEVY PROHIBITED WHILE OFFER-IN-COMPROMISE PENDING
OR INSTALLMENT AGREEMENT PENDING OR IN EFFECT.—Section 6331
(relating to levy and distraint), as amended by sections 3433 and
3444, is amended by redesignating subsection (k) as subsection
(l) and by inserting after subsection ( j) the following new subsection:
‘‘(k) NO LEVY WHILE CERTAIN OFFERS PENDING OR INSTALL-
MENT AGREEMENT PENDING OR IN EFFECT.—
‘‘(1) OFFER-IN-COMPROMISE PENDING.—No levy may be made
under subsection (a) on the property or rights to property
of any person with respect to any unpaid tax—
‘‘(A) during the period that an offer-in-compromise by
such person under section 7122 of such unpaid tax is
pending with the Secretary; and
‘‘(B) if such offer is rejected by the Secretary, during
the 30 days thereafter (and, if an appeal of such rejection
is filed within such 30 days, during the period that such
appeal is pending).
For purposes of subparagraph (A), an offer is pending beginning
on the date the Secretary accepts such offer for processing.
‘‘(2) INSTALLMENT AGREEMENTS.—No levy may be made
under subsection (a) on the property or rights to property
of any person with respect to any unpaid tax—
‘‘(A) during the period that an offer by such person
for an installment agreement under section 6159 for pay-
ment of such unpaid tax is pending with the Secretary;
‘‘(B) if such offer is rejected by the Secretary, during
the 30 days thereafter (and, if an appeal of such rejection
is filed within such 30 days, during the period that such

appeal is pending);
‘‘(C) during the period that such an installment agree-
ment for payment of such unpaid tax is in effect; and
‘‘(D) if such agreement is terminated by the Secretary,
during the 30 days thereafter (and, if an appeal of such
termination is filed within such 30 days, during the period
that such appeal is pending).
‘‘(3) CERTAIN RULES TO APPLY.—Rules similar to the rules
of paragraphs (3), (4), and (5) of subsection (i) shall apply
for purposes of this subsection.’’.
(c) REVIEW OF REJECTIONS OF OFFERS-IN-COMPROMISE AND
INSTALLMENT AGREEMENTS.—
(1) IN GENERAL.—Section 7122 (relating to compromises),
as amended by subsection (a), is amended by adding at the
end the following new subsection:
Procedures. ‘‘(d) ADMINISTRATIVE REVIEW.—The Secretary shall establish
procedures—
‘‘(1) for an independent administrative review of any rejec-
tion of a proposed offer-in-compromise or installment agreement
made by a taxpayer under this section or section 6159 before
such rejection is communicated to the taxpayer; and
‘‘(2) which allow a taxpayer to appeal any rejection of
such offer or agreement to the Internal Revenue Service Office
of Appeals.’’.
(2) CONFORMING AMENDMENT.—Section 6159 (relating to
installment agreements) is amended by adding at the end the
‘‘(d) CROSS REFERENCE.—
‘‘For rights to administrative review and appeal, see section
7122(d).’’.
26 USC 7122 (d) PREPARATION OF STATEMENT RELATING TO OFFERS-IN-
note. COMPROMISE.—The Secretary of the Treasury shall prepare a state-
ment which sets forth in simple, nontechnical terms the rights
of a taxpayer and the obligations of the Internal Revenue Service
relating to offers-in-compromise. Such statement shall—
(1) advise taxpayers who have entered into a compromise
of the advantages of promptly notifying the Internal Revenue
Service of any change of address or marital status;
(2) provide notice to taxpayers that in the case of a com-
promise terminated due to the actions of one spouse or former
spouse, the Internal Revenue Service will, upon application,
reinstate such compromise with the spouse or former spouse
who remains in compliance with such compromise; and
(3) provide notice to the taxpayer that the taxpayer may
appeal the rejection of an offer-in-compromise to the Internal
Applicability. (e) EFFECTIVE DATES.—
26 USC 6331 (1) IN GENERAL.—The amendments made by this section
note. shall apply to proposed offers-in-compromise and installment
agreements submitted after the date of the enactment of this
Act.
(2) SUSPENSION OF COLLECTION BY LEVY.—The amendment
made by subsection (b) shall apply to offers-in-compromise
pending on or made after December 31, 1999.
SEC. 3463. NOTICE OF DEFICIENCY TO SPECIFY DEADLINES FOR
FILING TAX COURT PETITION.
(a) IN GENERAL.—The Secretary of the Treasury or the 26 USC 6212
Secretary’s delegate shall include on each notice of deficiency under note.
section 6212 of the Internal Revenue Code of 1986 the date deter-
mined by such Secretary (or delegate) as the last day on which
the taxpayer may file a petition with the Tax Court.
(b) LATER FILING DEADLINES SPECIFIED ON NOTICE OF DEFI-
CIENCY TO BE BINDING.—Subsection (a) of section 6213 (relating
to restrictions applicable to deficiencies; petition to Tax Court)
‘‘Any petition filed with the Tax Court on or before the last date
specified for filing such petition by the Secretary in the notice
of deficiency shall be treated as timely filed.’’.
(c) EFFECTIVE DATE.—Subsection (a) and the amendment made Applicability.
by subsection (b) shall apply to notices mailed after December 26 USC 6213
note.
31, 1998.
SEC. 3464. REFUND OR CREDIT OF OVERPAYMENTS BEFORE FINAL
DETERMINATION.
(a) TAX COURT PROCEEDINGS.—Subsection (a) of section 6213
is amended—
(1) by striking ‘‘, including the Tax Court.’’ and inserting
‘‘, including the Tax Court, and a refund may be ordered by
such court of any amount collected within the period during
which the Secretary is prohibited from collecting by levy or
through a proceeding in court under the provisions of this
subsection.’’; and
(2) by striking ‘‘to enjoin any action or proceeding’’ and
inserting ‘‘to enjoin any action or proceeding or order any
refund’’.
(b) OTHER PROCEEDINGS.—Subsection (a) of section 6512 is
amended by striking the period at the end of paragraph (4) and
inserting ‘‘, and’’, and by inserting after paragraph (4) the following
new paragraphs:
‘‘(5) As to any amount collected within the period during
which the Secretary is prohibited from making the assessment
or from collecting by levy or through a proceeding in court
under the provisions of section 6213(a); and
‘‘(6) As to overpayments the Secretary is authorized to
refund or credit pending appeal as provided in subsection (b).’’.
(c) REFUND OR CREDIT PENDING APPEAL.—Paragraph (1) of
section 6512(b) is amended by adding at the end the following
new sentence: ‘‘If a notice of appeal in respect of the decision
of the Tax Court is filed under section 7483, the Secretary is
authorized to refund or credit the overpayment determined by the
Tax Court to the extent the overpayment is not contested on
appeal.’’.
SEC. 3465. INTERNAL REVENUE SERVICE PROCEDURES RELATING TO

APPEALS OF EXAMINATIONS AND COLLECTIONS.
(a) DISPUTE RESOLUTION PROCEDURES.—
(1) IN GENERAL.—Chapter 74 (relating to closing agree-
ments and compromises) is amended by redesignating section
7123 as section 7124 and by inserting after section 7122 the

following new section:
‘‘SEC. 7123. APPEALS DISPUTE RESOLUTION PROCEDURES.
‘‘(a) EARLY REFERRAL TO APPEALS PROCEDURES.—The Secretary
shall prescribe procedures by which any taxpayer may request
early referral of 1 or more unresolved issues from the examination
or collection division to the Internal Revenue Service Office of
Appeals.
‘‘(b) ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.—
‘‘(1) MEDIATION.—The Secretary shall prescribe procedures
under which a taxpayer or the Internal Revenue Service Office
of Appeals may request non-binding mediation on any issue
unresolved at the conclusion of—
‘‘(A) appeals procedures; or
‘‘(B) unsuccessful attempts to enter into a closing agree-
ment under section 7121 or a compromise under section
7122.
‘‘(2) ARBITRATION.—The Secretary shall establish a pilot
program under which a taxpayer and the Internal Revenue
Service Office of Appeals may jointly request binding arbitration
on any issue unresolved at the conclusion of—
‘‘(A) appeals procedures; or
‘‘(B) unsuccessful attempts to enter into a closing agree-
ment under section 7121 or a compromise under section
7122.’’.
(2) CONFORMING AMENDMENT.—The table of sections for
chapter 74 is amended by striking the item relating to section
7123 and inserting the following new items:
‘‘Sec. 7123. Appeals dispute resolution procedures.
‘‘Sec. 7124. Cross references.’’.
(b) APPEALS OFFICERS IN EACH STATE.—The Commissioner of
Internal Revenue shall ensure that an appeals officer is regularly
available within each State.
(c) APPEALS VIDEOCONFERENCING ALTERNATIVE FOR RURAL
AREAS.—The Commissioner of Internal Revenue shall consider the
use of the videoconferencing of appeals conferences between appeals
officers and taxpayers seeking appeals in rural or remote areas.
SEC. 3466. APPLICATION OF CERTAIN FAIR DEBT COLLECTION PROCE-
DURES.
(a) IN GENERAL.—Subchapter A of chapter 64 (relating to collec-
tion) is amended by inserting after section 6303 the following new
section:
‘‘SEC. 6304. FAIR TAX COLLECTION PRACTICES.
‘‘(a) COMMUNICATION WITH THE TAXPAYER.—Without the prior
consent of the taxpayer given directly to the Secretary or the
express permission of a court of competent jurisdiction, the Sec-
retary may not communicate with a taxpayer in connection with
the collection of any unpaid tax—
‘‘(1) at any unusual time or place or a time or place known
or which should be known to be inconvenient to the taxpayer;
‘‘(2) if the Secretary knows the taxpayer is represented
by any person authorized to practice before the Internal Reve-
nue Service with respect to such unpaid tax and has knowledge
of, or can readily ascertain, such person’s name and address,
unless such person fails to respond within a reasonable period

of time to a communication from the Secretary or unless such
person consents to direct communication with the taxpayer;
or
‘‘(3) at the taxpayer’s place of employment if the Secretary
knows or has reason to know that the taxpayer’s employer
prohibits the taxpayer from receiving such communication.
In the absence of knowledge of circumstances to the contrary,
the Secretary shall assume that the convenient time for commu-
nicating with a taxpayer is after 8 a.m. and before 9 p.m., local
time at the taxpayer’s location.
‘‘(b) PROHIBITION OF HARASSMENT AND ABUSE.—The Secretary
may not engage in any conduct the natural consequence of which
is to harass, oppress, or abuse any person in connection with
the collection of any unpaid tax. Without limiting the general
application of the foregoing, the following conduct is a violation
of this subsection:
‘‘(1) The use or threat of use of violence or other criminal
means to harm the physical person, reputation, or property
of any person.
‘‘(2) The use of obscene or profane language or language
the natural consequence of which is to abuse the hearer or
reader.
‘‘(3) Causing a telephone to ring or engaging any person
in telephone conversation repeatedly or continuously with
intent to annoy, abuse, or harass any person at the called
number.
‘‘(4) Except as provided under rules similar to the rules
in section 804 of the Fair Debt Collection Practices Act (15
U.S.C. 1692b), the placement of telephone calls without mean-
ingful disclosure of the caller’s identity.
‘‘(c) CIVIL ACTION FOR VIOLATIONS OF SECTION.—
‘‘For civil action for violations of this section, see section 7433.’’.
(b) CLERICAL AMENDMENT.—The table of sections for subchapter
A of chapter 64 is amended by inserting after the item relating
to section 6303 the following new item:
‘‘Sec. 6304. Fair tax collection practices.’’.
SEC. 3467. GUARANTEED AVAILABILITY OF INSTALLMENT AGREE-

MENTS.
(a) IN GENERAL.—Section 6159 (relating to agreements for pay-
ment of tax liability in installments) is amended by redesignating
subsection (c) as subsection (d) and by inserting after subsection
(b) the following new subsection:
‘‘(c) SECRETARY REQUIRED TO ENTER INTO INSTALLMENT AGREE-
MENTS IN CERTAIN CASES.—In the case of a liability for tax of
an individual under subtitle A, the Secretary shall enter into an
agreement to accept the payment of such tax in installments if,
as of the date the individual offers to enter into the agreement—
‘‘(1) the aggregate amount of such liability (determined
without regard to interest, penalties, additions to the tax, and
additional amounts) does not exceed $10,000;
‘‘(2) the taxpayer (and, if such liability relates to a joint

return, the taxpayer’s spouse) has not, during any of the preced-
ing 5 taxable years—
‘‘(A) failed to file any return of tax imposed by sub-
title A;
‘‘(B) failed to pay any tax required to be shown on
any such return; or
‘‘(C) entered into an installment agreement under this
section for payment of any tax imposed by subtitle A,
‘‘(3) the Secretary determines that the taxpayer is finan-
cially unable to pay such liability in full when due (and the
taxpayer submits such information as the Secretary may
require to make such determination);
‘‘(4) the agreement requires full payment of such liability
within 3 years; and
‘‘(5) the taxpayer agrees to comply with the provisions
of this title for the period such agreement is in effect.’’.
26 USC 7421 SEC. 3468. PROHIBITION ON REQUESTS TO TAXPAYERS TO GIVE UP
note. RIGHTS TO BRING ACTIONS.
(a) PROHIBITION.—No officer or employee of the United States
may request a taxpayer to waive the taxpayer’s right to bring
a civil action against the United States or any officer or employee
of the United States for any action taken in connection with the
internal revenue laws.
(b) EXCEPTIONS.—Subsection (a) shall not apply in any case
where—
(1) a taxpayer waives the right described in subsection
(a) knowingly and voluntarily; or
(2) the request by the officer or employee is made in person
and the taxpayer’s attorney or other federally authorized tax
practitioner (within the meaning of section 7525(a)(3)(A) of
the Internal Revenue Code of 1986) is present, or the request
is made in writing to the taxpayer’s attorney or other represent-
ative.
Subtitle F—Disclosures to Taxpayers

Procedures. SEC. 3501. EXPLANATION OF JOINT AND SEVERAL LIABILITY.
26 USC 7801
note. (a) IN GENERAL.—The Secretary of the Treasury or the
Deadline. Secretary’s delegate shall, as soon as practicable, but not later
than 180 days after the date of the enactment of this Act, establish
procedures to clearly alert married taxpayers of their joint and
several liabilities on all appropriate publications and instructions.
(b) RIGHT TO LIMIT LIABILITY.—The procedures under sub-
section (a) shall include requirements that notice of an individual’s
right to relief under section 6015 of the Internal Revenue Code
of 1986 shall be included in the statement required by section
6227 of the Omnibus Taxpayer Bill of Rights (Internal Revenue
Service Publication No. 1) and in any collection-related notices.
26 USC 7801 SEC. 3502. EXPLANATION OF TAXPAYERS’ RIGHTS IN INTERVIEWS WITH
note. THE INTERNAL REVENUE SERVICE.
Deadline. The Secretary of the Treasury or the Secretary’s delegate shall,
as soon as practicable, but not later than 180 days after the date
of the enactment of this Act, revise the statement required by

section 6227 of the Omnibus Taxpayer Bill of Rights (Internal
Revenue Service Publication No. 1) to more clearly inform taxpayers
of their rights—
(1) to be represented at interviews with the Internal
Revenue Service by any person authorized to practice before
the Internal Revenue Service; and
(2) to suspend an interview pursuant to section 7521(b)(2)
of the Internal Revenue Code of 1986.
SEC. 3503. DISCLOSURE OF CRITERIA FOR EXAMINATION SELECTION. 26 USC 7801
note.
(a) IN GENERAL.—The Secretary of the Treasury or the Sec- Deadline.
retary’s delegate shall, as soon as practicable, but not later than
180 days after the date of the enactment of this Act, incorporate
into the statement required by section 6227 of the Omnibus Tax-
payer Bill of Rights (Internal Revenue Service Publication No.
1) a statement which sets forth in simple and nontechnical terms
the criteria and procedures for selecting taxpayers for examination.
Such statement shall not include any information the disclosure
of which would be detrimental to law enforcement, but shall specify
the general procedures used by the Internal Revenue Service,
including whether taxpayers are selected for examination on the
basis of information available in the media or on the basis of
information provided to the Internal Revenue Service by informants.
(b) TRANSMISSION TO COMMITTEES OF CONGRESS.—The
Secretary shall transmit drafts of the statement required under
subsection (a) (or proposed revisions to any such statement) to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate on the same day.
SEC. 3504. EXPLANATIONS OF APPEALS AND COLLECTION PROCESS. 26 USC 6212
note.
The Secretary of the Treasury or the Secretary’s delegate shall, Deadline.
as soon as practicable, but not later than 180 days after the date
of the enactment of this Act, include with any first letter of proposed
deficiency which allows the taxpayer an opportunity for administra-
tive review in the Internal Revenue Service Office of Appeals an
explanation of the entire process from examination through collec-
tion with respect to such proposed deficiency, including the assist-
ance available to the taxpayer from the National Taxpayer Advocate
at various points in the process.
SEC. 3505. EXPLANATION OF REASON FOR REFUND DISALLOWANCE.
(a) IN GENERAL.—Section 6402 (relating to authority to make
credits or refunds) is amended by adding at the end the following
new subsection:
‘‘( j) EXPLANATION OF REASON FOR REFUND DISALLOWANCE.—
In the case of a disallowance of a claim for refund, the Secretary
shall provide the taxpayer with an explanation for such disallow-
ance.’’.
shall apply to disallowances after the 180th day after the date 26 USC 6402
note.
SEC. 3506. STATEMENTS REGARDING INSTALLMENT AGREEMENTS. 26 USC 6159
note.
The Secretary of the Treasury or the Secretary’s delegate shall, Deadline.
beginning not later than July 1, 2000, provide each taxpayer who
has an installment agreement in effect under section 6159 of the
Internal Revenue Code of 1986 an annual statement setting forth
the initial balance at the beginning of the year, the payments

made during the year, and the remaining balance as of the end
of the year.
SEC. 3507. NOTIFICATION OF CHANGE IN TAX MATTERS PARTNER.
Deadline. (a) IN GENERAL.—Section 6231(a)(7) (defining tax matters part-
ner) is amended by adding at the end the following new sentence:
‘‘The Secretary shall, within 30 days of selecting a tax matters
partner under the preceding sentence, notify all partners required
to receive notice under section 6223(a) of the name and address
of the person selected.’’.
26 USC 6231 shall apply to selections of tax matters partners made by the
note. Secretary of the Treasury after the date of the enactment of this
Act.
26 USC 7801 SEC. 3508. DISCLOSURE TO TAXPAYERS.
note.
The Secretary of the Treasury or the Secretary’s delegate shall
ensure that any instructions booklet accompanying an individual
Federal income tax return form (including forms 1040, 1040A,
1040EZ, and any similar or successor forms) shall include, in clear
language, in conspicuous print, and in a conspicuous place, a concise
description of the conditions under which return information may
be disclosed to any party outside the Internal Revenue Service,
including disclosure to any State or agency, body, or commission
(or legal representative) thereof.
SEC. 3509. DISCLOSURE OF CHIEF COUNSEL ADVICE.
(a) IN GENERAL.—Section 6110(b)(1) (defining written deter-
mination) is amended by striking ‘‘or technical advice memorandum’’
and inserting ‘‘technical advice memorandum, or Chief Counsel
advice’’.
(b) CHIEF COUNSEL ADVICE.—Section 6110 (relating to public
inspection of written determinations) is amended by redesignating
subsections (i), ( j), (k), and (l) as subsections ( j), (k), (l), and (m),
respectively, and by inserting after subsection (h) the following
new subsection:
‘‘(i) SPECIAL RULES FOR DISCLOSURE OF CHIEF COUNSEL
ADVICE.—
‘‘(1) CHIEF COUNSEL ADVICE DEFINED.—
‘‘(A) IN GENERAL.—For purposes of this section, the
term ‘Chief Counsel advice’ means written advice or
instruction, under whatever name or designation, prepared
by any national office component of the Office of Chief
Counsel which—
‘‘(i) is issued to field or service center employees
of the Service or regional or district employees of the
Office of Chief Counsel; and
‘‘(ii) conveys—
‘‘(I) any legal interpretation of a revenue
provision;
‘‘(II) any Internal Revenue Service or Office
of Chief Counsel position or policy concerning a
revenue provision; or
‘‘(III) any legal interpretation of State law,
foreign law, or other Federal law relating to the
assessment or collection of any liability under a
revenue provision.
‘‘(B) REVENUE PROVISION DEFINED.—For purposes of

subparagraph (A), the term ‘revenue provision’ means any
existing or former internal revenue law, regulation, revenue
ruling, revenue procedure, other published or unpublished
guidance, or tax treaty, either in general or as applied
to specific taxpayers or groups of specific taxpayers.
‘‘(2) ADDITIONAL DOCUMENTS TREATED AS CHIEF COUNSEL
ADVICE.—The Secretary may by regulation provide that this
section shall apply to any advice or instruction prepared and
issued by the Office of Chief Counsel which is not described
in paragraph (1).
‘‘(3) DELETIONS FOR CHIEF COUNSEL ADVICE.—In the case
of Chief Counsel advice open to public inspection pursuant
to this section—
‘‘(A) paragraphs (2) through (7) of subsection (c) shall
not apply, but
‘‘(B) the Secretary may make deletions of material
in accordance with subsections (b) and (c) of section 552
of title 5, United States Code, except that in applying
subsection (b)(3) of such section, no statutory provision
of this title shall be taken into account.
‘‘(4) NOTICE OF INTENTION TO DISCLOSE.—
‘‘(A) NONTAXPAYER-SPECIFIC CHIEF COUNSEL ADVICE.—
In the case of Chief Counsel advice which is written without
reference to a specific taxpayer or group of specific tax-
payers—
‘‘(i) subsection (f )(1) shall not apply; and
‘‘(ii) the Secretary shall, within 60 days after the Deadline.
issuance of the Chief Counsel advice, complete any
deletions described in subsection (c)(1) or paragraph
(3) and make the Chief Counsel advice, as so edited, Public
open for public inspection. information.
‘‘(B) TAXPAYER-SPECIFIC CHIEF COUNSEL ADVICE.—In Deadline.
the case of Chief Counsel advice which is written with
respect to a specific taxpayer or group of specific taxpayers,
the Secretary shall, within 60 days after the issuance of
the Chief Counsel advice, mail the notice required by sub-
section (f )(1) to each such taxpayer. The notice shall include
a copy of the Chief Counsel advice on which is indicated
the information that the Secretary proposes to delete pursu-
ant to subsection (c)(1). The Secretary may also delete
from the copy of the text of the Chief Counsel advice
any of the information described in paragraph (3), and
shall delete the names, addresses, and other identifying
details of taxpayers other than the person to whom the
advice pertains, except that the Secretary shall not delete
from the copy of the Chief Counsel advice that is furnished
to the taxpayer any information of which that taxpayer
was the source.’’.
(1) Section 6110(f )(1) is amended by striking ‘‘The
Secretary’’ and inserting ‘‘Except as otherwise provided by sub-
section (i), the Secretary’’.
(2) Paragraphs (1)(B) and (2) of section 6110( j)(1), as
redesignated by this section, are amended by striking ‘‘sub-
section (g)’’ each place it appears and inserting ‘‘subsection
(g) or (i)(4)(B)’’.
(3) Section 6110(k)(1)(B), as so redesignated, is amended

by striking ‘‘subsection (c)’’ and inserting ‘‘subsection (c)(1) or
(i)(3)’’.
26 USC 6110 (d) EFFECTIVE DATES.—
note. (1) IN GENERAL.—Except as otherwise provided in this sub-
Applicability.
section, the amendments made by this section shall apply to
any Chief Counsel advice issued more than 90 days after the
Applicability. (2) TRANSITION RULES.—The amendments made by this
section shall apply to any Chief Counsel advice issued after
December 31, 1985, and before the 91st day after the date
of the enactment of this Act by the offices of the associate
chief counsel for domestic, employee benefits and exempt
organizations, and international, except that any such Chief
Counsel advice shall be treated as made available on a timely
basis if such advice is made available for public inspection
not later than the following dates:
(A) One year after the date of the enactment of this
Act, in the case of all litigation guideline memoranda,
service center advice, tax litigation bulletins, criminal tax
bulletins, and general litigation bulletins.
(B) Eighteen months after such date of enactment,
in the case of field service advice and technical assistance
to the field issued on or after January 1, 1994.
(C) Three years after such date of enactment, in the
case of field service advice and technical assistance to
the field issued on or after January 1, 1992, and before
January 1, 1994.
(D) Six years after such date of enactment, in the
case of any other Chief Counsel advice issued after Decem-
ber 31, 1985.
Public (3) DOCUMENTS TREATED AS CHIEF COUNSEL ADVICE.—If
information. the Secretary of the Treasury by regulation provides pursuant
to section 6110(i)(2) of the Internal Revenue Code of 1986,
as added by this section, that any additional advice or instruc-
tion issued by the Office of Chief Counsel shall be treated
as Chief Counsel advice, such additional advice or instruction
shall be made available for public inspection pursuant to section
6110 of such Code, as amended by this section, only in accord-
ance with the effective date set forth in such regulation.
(4) CHIEF COUNSEL ADVICE TO BE AVAILABLE ELECTRONI-
CALLY.—The Internal Revenue Service shall make any Chief
Counsel advice issued more than 90 days after the date of
the enactment of this Act and made available for public inspec-
tion pursuant to section 6110 of such Code, as amended by
this section, also available by computer telecommunications
within 1 year after issuance.
Subtitle G—Low-Income Taxpayer Clinics

SEC. 3601. LOW-INCOME TAXPAYER CLINICS.
(a) IN GENERAL.—Chapter 77 (relating to miscellaneous provi-
sions), as amended by section 3411, is amended by adding at the
end the following new section:
‘‘SEC. 7526. LOW-INCOME TAXPAYER CLINICS.
‘‘(a) IN GENERAL.—The Secretary may, subject to the availabil-
ity of appropriated funds, make grants to provide matching funds
for the development, expansion, or continuation of qualified low-
income taxpayer clinics.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED LOW-INCOME TAXPAYER CLINIC.—
‘‘(A) IN GENERAL.—The term ‘qualified low-income tax-
payer clinic’ means a clinic that—
‘‘(i) does not charge more than a nominal fee for
its services (except for reimbursement of actual costs
incurred); and
‘‘(ii)(I) represents low-income taxpayers in con-
troversies with the Internal Revenue Service; or
‘‘(II) operates programs to inform individuals for
whom English is a second language about their rights
and responsibilities under this title.
‘‘(B) REPRESENTATION OF LOW-INCOME TAXPAYERS.—A
clinic meets the requirements of subparagraph (A)(ii)(I)
if—
‘‘(i) at least 90 percent of the taxpayers represented
by the clinic have incomes which do not exceed 250
percent of the poverty level, as determined in accord-
ance with criteria established by the Director of the
Office of Management and Budget; and
‘‘(ii) the amount in controversy for any taxable
year generally does not exceed the amount specified
in section 7463.
‘‘(2) CLINIC.—The term ‘clinic’ includes—
‘‘(A) a clinical program at an accredited law, business,
or accounting school in which students represent low-
income taxpayers in controversies arising under this title;
and
‘‘(B) an organization described in section 501(c) and
exempt from tax under section 501(a) which satisfies the
requirements of paragraph (1) through representation of
taxpayers or referral of taxpayers to qualified representa-
tives.
‘‘(3) QUALIFIED REPRESENTATIVE.—The term ‘qualified rep-
resentative’ means any individual (whether or not an attorney)
who is authorized to practice before the Internal Revenue Serv-
ice or the applicable court.
‘‘(c) SPECIAL RULES AND LIMITATIONS.—
‘‘(1) AGGREGATE LIMITATION.—Unless otherwise provided
by specific appropriation, the Secretary shall not allocate more
than $6,000,000 per year (exclusive of costs of administering
the program) to grants under this section.
‘‘(2) LIMITATION ON ANNUAL GRANTS TO A CLINIC.—The
aggregate amount of grants which may be made under this
section to a clinic for a year shall not exceed $100,000.
‘‘(3) MULTI-YEAR GRANTS.—Upon application of a qualified
low-income taxpayer clinic, the Secretary is authorized to award
a multi-year grant not to exceed 3 years.
‘‘(4) CRITERIA FOR AWARDS.—In determining whether to
make a grant under this section, the Secretary shall consider—
‘‘(A) the numbers of taxpayers who will be served by

the clinic, including the number of taxpayers in the geo-
graphical area for whom English is a second language;
‘‘(B) the existence of other low-income taxpayer clinics
serving the same population;
‘‘(C) the quality of the program offered by the low-
income taxpayer clinic, including the qualifications of its
administrators and qualified representatives, and its
record, if any, in providing service to low-income taxpayers;
and
‘‘(D) alternative funding sources available to the clinic,
including amounts received from other grants and contribu-
tions, and the endowment and resources of the institution
sponsoring the clinic.
‘‘(5) REQUIREMENT OF MATCHING FUNDS.—A low-income tax-
payer clinic must provide matching funds on a dollar-for-dollar
basis for all grants provided under this section. Matching funds
may include—
‘‘(A) the salary (including fringe benefits) of individuals
performing services for the clinic; and
‘‘(B) the cost of equipment used in the clinic.
Indirect expenses, including general overhead of the institution
sponsoring the clinic, shall not be counted as matching funds.’’.
(b) CLERICAL AMENDMENT.—The table of sections for chapter
77, as amended by section 3411, is amended by adding at the
end the following new item:
‘‘Sec. 7526. Low-income taxpayer clinics.’’.
Subtitle H—Other Matters

26 USC 7804 SEC. 3701. CATALOGING COMPLAINTS.
note.
In collecting data for the report required under section 1211
of the Taxpayer Bill of Rights 2 (Public Law 104–168), the Secretary
of the Treasury or the Secretary’s delegate shall, not later than
January 1, 2000, maintain records of taxpayer complaints of mis-
conduct by Internal Revenue Service employees on an individual
employee basis.
SEC. 3702. ARCHIVE OF RECORDS OF INTERNAL REVENUE SERVICE.
(a) IN GENERAL.—Subsection (l) of section 6103 (relating to
confidentiality and disclosure of returns and return information)
‘‘(17) DISCLOSURE TO NATIONAL ARCHIVES AND RECORDS
ADMINISTRATION.—The Secretary shall, upon written request
from the Archivist of the United States, disclose or authorize
the disclosure of returns and return information to officers
and employees of the National Archives and Records Adminis-
tration for purposes of, and only to the extent necessary in,
the appraisal of records for destruction or retention. No such
officer or employee shall, except to the extent authorized by
subsection (f ), (i)(7), or (p), disclose any return or return
information disclosed under the preceding sentence to any per-
son other than to the Secretary, or to another officer or
employee of the National Archives and Records Administration
whose official duties require such disclosure for purposes of

such appraisal.’’.
(b) CONFORMING AMENDMENTS.—Section 6103(p) is amended—
(1) in paragraph (3)(A), by striking ‘‘or (16)’’ and inserting
‘‘(16), or (17)’’;
(2) in paragraph (4), by striking ‘‘or (14)’’ and inserting
‘‘, (14), or (17)’’ in the matter preceding subparagraph (A);
and
(3) in paragraph (4)(F)(ii), by striking ‘‘or (15)’’ and insert-
ing ‘‘, (15), or (17)’’.
shall apply to requests made by the Archivist of the United States 26 USC 6103
after the date of the enactment of this Act. note.
SEC. 3703. PAYMENT OF TAXES. Regulations.

26 USC 6311
The Secretary of the Treasury or the Secretary’s delegate shall note.
establish such rules, regulations, and procedures as are necessary
to allow payment of taxes by check or money order made payable
to the United States Treasury.
SEC. 3704. CLARIFICATION OF AUTHORITY OF SECRETARY RELATING
TO THE MAKING OF ELECTIONS.
Subsection (d) of section 7805 is amended by striking ‘‘by regu-
lations or forms’’.
SEC. 3705. INTERNAL REVENUE SERVICE EMPLOYEE CONTACTS. 26 USC 7801
note.
(a) NOTICE.—The Secretary of the Treasury or the Secretary’s
delegate shall provide that—
(1) any manually generated correspondence received by
a taxpayer from the Internal Revenue Service shall include
in a prominent manner the name, telephone number, and
unique identifying number of an Internal Revenue Service
employee the taxpayer may contact with respect to the cor-
respondence;
(2) any other correspondence or notice received by a tax-
payer from the Internal Revenue Service shall include in a
prominent manner a telephone number that the taxpayer may
contact; and
(3) an Internal Revenue Service employee shall give a
taxpayer during a telephone or personal contact the employee’s
name and unique identifying number.
(b) SINGLE CONTACT.—The Secretary of the Treasury or the Procedures.
Secretary’s delegate shall develop a procedure under which, to
the extent practicable and if advantageous to the taxpayer, one
Internal Revenue Service employee shall be assigned to handle
a taxpayer’s matter until it is resolved.
(c) TELEPHONE HELPLINE IN SPANISH.—The Secretary of the
Treasury or the Secretary’s delegate shall provide, in appropriate
circumstances, that taxpayer questions on telephone helplines of
the Internal Revenue Service are answered in Spanish.
(d) OTHER TELEPHONE HELPLINE OPTIONS.—The Secretary of
the Treasury or the Secretary’s delegate shall provide, in appro-
priate circumstances, on telephone helplines of the Internal Revenue
Service an option for any taxpayer to talk to an Internal Revenue
Service employee during normal business hours. The person shall
direct phone questions of the taxpayer to other Internal Revenue
Service personnel who can provide assistance to the taxpayer.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as otherwise provided in this sub-

section, this section shall take effect 60 days after the date
(2) SUBSECTION (c).—Subsection (c) shall take effect on
January 1, 2000.
(3) SUBSECTION (d).—Subsection (d) shall take effect on
January 1, 2000.
(4) UNIQUE IDENTIFYING NUMBER.—Any requirement under
this section to provide a unique identifying number shall take
effect 6 months after the date of the enactment of this Act.
26 USC 7804 SEC. 3706. USE OF PSEUDONYMS BY INTERNAL REVENUE SERVICE
note. EMPLOYEES.
(a) IN GENERAL.—Any employee of the Internal Revenue Service
may use a pseudonym only if—
(1) adequate justification for the use of a pseudonym is
provided by the employee, including protection of personal
safety; and
(2) such use is approved by the employee’s supervisor before
the pseudonym is used.
Applicability. (b) EFFECTIVE DATE.—Subsection (a) shall apply to requests
made after the date of the enactment of this Act.
26 USC 6651 SEC. 3707. ILLEGAL TAX PROTESTER DESIGNATION.
note.
(a) PROHIBITION.—The officers and employees of the Internal
Revenue Service—
(1) shall not designate taxpayers as illegal tax protesters
(or any similar designation); and
(2) in the case of any such designation made on or before
the date of the enactment of this Act—
(A) shall remove such designation from the individual
master file; and
(B) shall disregard any such designation not located
in the individual master file.
(b) DESIGNATION OF NONFILERS ALLOWED.—An officer or
employee of the Internal Revenue Service may designate any appro-
priate taxpayer as a nonfiler, but shall remove such designation
once the taxpayer has filed income tax returns for 2 consecutive
taxable years and paid all taxes shown on such returns.
(c) EFFECTIVE DATE.—The provisions of this section shall take
effect on the date of the enactment of this Act, except that the
removal of any designation under subsection (a)(2)(A) shall not
be required to begin before January 1, 1999.
SEC. 3708. PROVISION OF CONFIDENTIAL INFORMATION TO CONGRESS
BY WHISTLEBLOWERS.
(a) IN GENERAL.—Section 6103(f ) (relating to disclosure to
committees of Congress) is amended by adding at the end the
following new paragraph:
‘‘(5) DISCLOSURE BY WHISTLEBLOWER.—Any person who
otherwise has or had access to any return or return information
under this section may disclose such return or return
information to a committee referred to in paragraph (1) or
any individual authorized to receive or inspect information
under paragraph (4)(A) if such person believes such return
or return information may relate to possible misconduct, mal-
administration, or taxpayer abuse.’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 6103

SEC. 3709. LISTING OF LOCAL INTERNAL REVENUE SERVICE TELE- 26 USC 7801
PHONE NUMBERS AND ADDRESSES. note.
The Secretary of the Treasury or the Secretary’s delegate shall,

as soon as practicable, provide that the local telephone numbers
and addresses of Internal Revenue Service offices located in any
particular area be listed in a telephone book for that area.
SEC. 3710. IDENTIFICATION OF RETURN PREPARERS.
(a) IN GENERAL.—The last sentence of section 6109(a) (relating
to identifying numbers) is amended by striking ‘‘For purposes of
this subsection’’ and inserting ‘‘For purposes of paragraphs (1),
(2), and (3)’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 6109
SEC. 3711. OFFSET OF PAST-DUE, LEGALLY ENFORCEABLE STATE

INCOME TAX OBLIGATIONS AGAINST OVERPAYMENTS.
(a) IN GENERAL.—Section 6402 (relating to authority to make
credits or refunds), as amended by section 3505, is amended by
redesignating subsections (e) through ( j) as subsections (f ) through
(k), respectively, and by inserting after subsection (d) the following
new subsection:
‘‘(e) COLLECTION OF PAST-DUE, LEGALLY ENFORCEABLE STATE
INCOME TAX OBLIGATIONS.—
‘‘(1) IN GENERAL.—Upon receiving notice from any State Notification.
that a named person owes a past-due, legally enforceable State
income tax obligation to such State, the Secretary shall, under
such conditions as may be prescribed by the Secretary—
‘‘(A) reduce the amount of any overpayment payable
to such person by the amount of such State income tax
obligation;
‘‘(B) pay the amount by which such overpayment is
reduced under subparagraph (A) to such State and notify
such State of such person’s name, taxpayer identification
number, address, and the amount collected; and
‘‘(C) notify the person making such overpayment that
the overpayment has been reduced by an amount necessary
to satisfy a past-due, legally enforceable State income tax
obligation.
If an offset is made pursuant to a joint return, the notice
under subparagraph (B) shall include the names, taxpayer
identification numbers, and addresses of each person filing
such return.
‘‘(2) OFFSET PERMITTED ONLY AGAINST RESIDENTS OF STATE Applicability.
SEEKING OFFSET.—Paragraph (1) shall apply to an overpayment
by any person for a taxable year only if the address shown
on the Federal return for such taxable year of the overpayment
is an address within the State seeking the offset.
‘‘(3) PRIORITIES FOR OFFSET.—Any overpayment by a person
shall be reduced pursuant to this subsection—
‘‘(A) after such overpayment is reduced pursuant to—
‘‘(i) subsection (a) with respect to any liability for
any internal revenue tax on the part of the person
who made the overpayment;
‘‘(ii) subsection (c) with respect to past-due support;

and
‘‘(iii) subsection (d) with respect to any past-due,
legally enforceable debt owed to a Federal agency; and
‘‘(B) before such overpayment is credited to the future
liability for any Federal internal revenue tax of such person
pursuant to subsection (b).
If the Secretary receives notice from one or more agencies
of the State of more than one debt subject to paragraph (1)
that is owed by such person to such an agency, any overpayment
by such person shall be applied against such debts in the
order in which such debts accrued.
‘‘(4) NOTICE; CONSIDERATION OF EVIDENCE.—No State may
take action under this subsection until such State—
‘‘(A) notifies by certified mail with return receipt the
person owing the past-due State income tax liability that
the State proposes to take action pursuant to this section;
‘‘(B) gives such person at least 60 days to present
evidence that all or part of such liability is not past-due
or not legally enforceable;
‘‘(C) considers any evidence presented by such person
and determines that an amount of such debt is past-due
and legally enforceable; and
‘‘(D) satisfies such other conditions as the Secretary
may prescribe to ensure that the determination made under
subparagraph (C) is valid and that the State has made
reasonable efforts to obtain payment of such State income
tax obligation.
‘‘(5) PAST-DUE, LEGALLY ENFORCEABLE STATE INCOME TAX
OBLIGATION.—For purposes of this subsection, the term ‘past-
due, legally enforceable State income tax obligation’ means
a debt—
‘‘(A)(i) which resulted from—
‘‘(I) a judgment rendered by a court of competent
jurisdiction which has determined an amount of State
income tax to be due; or
‘‘(II) a determination after an administrative
hearing which has determined an amount of State
income tax to be due; and
‘‘(ii) which is no longer subject to judicial review; or
‘‘(B) which resulted from a State income tax which
has been assessed but not collected, the time for redeter-
mination of which has expired, and which has not been
delinquent for more than 10 years.
For purposes of this paragraph, the term ‘State income tax’
includes any local income tax administered by the chief tax
administration agency of the State.
‘‘(6) REGULATIONS.—The Secretary shall issue regulations
prescribing the time and manner in which States must submit
notices of past-due, legally enforceable State income tax obliga-
tions and the necessary information that must be contained
in or accompany such notices. The regulations shall specify
the types of State income taxes and the minimum amount
of debt to which the reduction procedure established by para-
graph (1) may be applied. The regulations may require States
to pay a fee to reimburse the Secretary for the cost of applying
such procedure. Any fee paid to the Secretary pursuant to
the preceding sentence shall be used to reimburse appropria-

tions which bore all or part of the cost of applying such proce-
dure.
‘‘(7) ERRONEOUS PAYMENT TO STATE.—Any State receiving
notice from the Secretary that an erroneous payment has been
made to such State under paragraph (1) shall pay promptly
to the Secretary, in accordance with such regulations as the
Secretary may prescribe, an amount equal to the amount of
such erroneous payment (without regard to whether any other
amounts payable to such State under such paragraph have
been paid to such State).’’.
(b) DISCLOSURE OF CERTAIN INFORMATION TO STATES REQUEST-
ING REFUND OFFSETS FOR PAST-DUE, LEGALLY ENFORCEABLE STATE
INCOME TAX OBLIGATIONS.—
(1) Paragraph (10) of section 6103(l) is amended by striking
‘‘(c) or (d)’’ each place it appears and inserting ‘‘(c), (d), or
(e)’’.
(2) The heading for paragraph (10) is amended by striking
‘‘SECTION 6402 (c) OR 6402 (d)’’ AND INSERTING ‘‘SUBSECTION (c),
(d), OR (e) OF SECTION 6402’’.
(1) Subsection (a) of section 6402 is amended by striking
‘‘(c) and (d)’’ and inserting ‘‘(c), (d), and (e)’’.
(2) Paragraph (2) of section 6402(d) is amended by striking
‘‘and before such overpayment’’ and inserting ‘‘and before such
overpayment is reduced pursuant to subsection (e) and before
such overpayment’’.
(3) Subsection (f ) of section 6402, as redesignated by sub-
section (a), is amended—
(A) by striking ‘‘(c) or (d)’’ and inserting ‘‘(c), (d), or
(e)’’; and
(B) by striking ‘‘Federal agency’’ and inserting ‘‘Federal
agency or State’’.
(4) Subsection (h) of section 6402, as redesignated by sub-
section (a), is amended by striking ‘‘subsection (c)’’ and inserting
‘‘subsection (c) or (e)’’.
(d) EFFECTIVE DATE.—The amendments made by this section Applicability.
(other than subsection (d)) shall apply to refunds payable under 26 USC 6103
note.
section 6402 of the Internal Revenue Code of 1986 after December
31, 1999.
SEC. 3712. REPORTING REQUIREMENTS IN CONNECTION WITH
EDUCATION TAX CREDIT.
(a) AMOUNTS TO BE REPORTED.—Subparagraph (C) of section
6050S(b)(2) is amended—
(1) by redesignating clauses (ii) and (iii) as clauses (iii)
and (iv), respectively, and by inserting after clause (i) the
following new clause:
‘‘(ii) the amount of any grant received by such
individual for payment of costs of attendance and proc-
essed by the person making such return during such
calendar year,’’;
(2) in clause (iii) (as so redesignated), by inserting ‘‘by
the person making such return’’ after ‘‘year’’; and
(3) in clause (iv) (as so redesignated), by inserting ‘‘and’’
at the end.
(1) Paragraph (2) of section 6050S(d) is amended by striking

‘‘aggregate’’.
(2) Subsection (e) of section 6050S is amended by inserting
‘‘(without regard to subsection (g)(2) thereof)’’ after ‘‘section
25A’’.
26 USC 6050S shall apply to returns required to be filed with respect to taxable
note.
years beginning after December 31, 1998.
Subtitle I—Studies
26 USC 6601 SEC. 3801. ADMINISTRATION OF PENALTIES AND INTEREST.
note.
The Joint Committee on Taxation and the Secretary of the
Treasury shall each conduct a separate study—
(1) reviewing the administration and implementation by
the Internal Revenue Service of the interest and penalty provi-
sions of the Internal Revenue Code of 1986 (including the
penalty reform provisions of the Omnibus Budget Reconciliation
Act of 1989); and
(2) making any legislative and administrative recommenda-
tions the Committee or the Secretary deems appropriate to
simplify penalty or interest administration and reduce taxpayer
burden.
Deadline. Such studies shall be submitted to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate not later than 1 year after the date of
the enactment of this Act.
26 USC 6103 SEC. 3802. CONFIDENTIALITY OF TAX RETURN INFORMATION.
note.
Reports. The Joint Committee on Taxation and the Secretary of the
Deadline. Treasury shall each conduct a separate study of the scope and
use of provisions regarding taxpayer confidentiality, and shall report
the findings of such study, together with such recommendations
as the Committee or the Secretary deems appropriate, to the Con-
gress not later than 18 months after the date of the enactment
of this Act. Such study shall examine—
(1) the present protections for taxpayer privacy;
(2) any need for third parties to use tax return information;
(3) whether greater levels of voluntary compliance may
be achieved by allowing the public to know who is legally
required to file tax returns, but does not file tax returns;
(4) the interrelationship of the taxpayer confidentiality
provisions in the Internal Revenue Code of 1986 with such
provisions in other Federal law, including section 552a of title
5, United States Code (commonly known as the ‘‘Freedom of
Information Act’’);
(5) the impact on taxpayer privacy of the sharing of income
tax return information for purposes of enforcement of State
and local tax laws other than income tax laws, and including
the impact on the taxpayer privacy intended to be protected
at the Federal, State, and local levels under Public Law 105–
35, the Taxpayer Browsing Protection Act of 1997; and
(6) whether the public interest would be served by greater
disclosure of information relating to tax exempt organizations
described in section 501 of the Internal Revenue Code of 1986.
SEC. 3803. STUDY OF NONCOMPLIANCE WITH INTERNAL REVENUE 26 USC 7801
LAWS BY TAXPAYERS. note.
Not later than 1 year after the date of the enactment of this Deadline.
Act, the Secretary of the Treasury and the Commissioner of Internal
Revenue shall jointly conduct a study, in consultation with the
Joint Committee on Taxation, of the noncompliance with internal
revenue laws by taxpayers (including willful noncompliance and
noncompliance due to tax law complexity or other factors) and
report the findings of such study to Congress.
SEC. 3804. STUDY OF PAYMENTS MADE FOR DETECTION OF UNDERPAY- 26 USC 7623
MENTS AND FRAUD. note.
Not later than 1 year after the date of the enactment of this Deadline.
Act, the Secretary of the Treasury shall conduct a study and report Reports.
to Congress on the use of section 7623 of the Internal Revenue
Code of 1986 including—
(1) an analysis of the present use of such section and
the results of such use; and
(2) any legislative or administrative recommendations
regarding the provisions of such section and its application.
TITLE IV—CONGRESSIONAL ACCOUNT-

ABILITY FOR THE INTERNAL REVE-
NUE SERVICE
Subtitle A—Oversight
SEC. 4001. EXPANSION OF DUTIES OF THE JOINT COMMITTEE ON
TAXATION.
(a) IN GENERAL.—Section 8021 (relating to the powers of the
Joint Committee on Taxation) is amended by adding at the end
the following new subsections:
‘‘(e) INVESTIGATIONS.—The Joint Committee shall review all
requests (other than requests by the chairman or ranking member
of a committee or subcommittee) for investigations of the Internal
Revenue Service by the General Accounting Office, and approve
such requests when appropriate, with a view towards eliminating
overlapping investigations, ensuring that the General Accounting
Office has the capacity to handle the investigation, and ensuring
that investigations focus on areas of primary importance to tax
administration.
‘‘(f ) RELATING TO JOINT REVIEWS.—
‘‘(1) IN GENERAL.—The Chief of Staff, and the staff of the
Joint Committee, shall provide such assistance as is required
for joint reviews described in paragraph (2).
‘‘(2) JOINT REVIEWS.—Before June 1 of each calendar year Deadline.
after 1998 and before 2004, there shall be a joint review of
the strategic plans and budget for the Internal Revenue Service
and such other matters as the Chairman of the Joint Committee
deems appropriate. Such joint review shall be held at the
call of the Chairman of the Joint Committee and shall include
two members of the majority and one member of the minority
from each of the Committees on Finance, Appropriations, and
Governmental Affairs of the Senate, and the Committees on
Ways and Means, Appropriations, and Government Reform and

Oversight of the House of Representatives.’’.
26 USC 8021 (b) EFFECTIVE DATES.—
note. (1) Subsection (e) of section 8021 of the Internal Revenue
Applicability.
Code of 1986, as added by subsection (a) of this section, shall
apply to requests made after the date of the enactment of
this Act.
(2) Subsection (f ) of such section shall take effect on the
SEC. 4002. COORDINATED OVERSIGHT REPORTS.
(a) IN GENERAL.—Paragraph (3) of section 8022 (relating to
the duties of the Joint Committee on Taxation) is amended to
read as follows:
‘‘(3) REPORTS.—
‘‘(A) To report, from time to time, to the Committee
on Finance and the Committee on Ways and Means, and,
in its discretion, to the Senate or House of Representatives,
or both, the results of its investigations, together with
such recommendations as it may deem advisable.
‘‘(B) Subject to amounts specifically appropriated to
carry out this subparagraph, to report, at least once each
Congress, to the Committee on Finance and the Committee
on Ways and Means on the overall state of the Federal
tax system, together with recommendations with respect
to possible simplification proposals and other matters relat-
ing to the administration of the Federal tax system as
it may deem advisable.
Deadline. ‘‘(C) To report, for each calendar year after 1998 and
before 2004, to the Committees on Finance, Appropriations,
and Governmental Affairs of the Senate, and to the
Committees on Ways and Means, Appropriations, and
Government Reform and Oversight of the House of Rep-
resentatives, with respect to—
‘‘(i) strategic and business plans for the Internal
Revenue Service;
‘‘(ii) progress of the Internal Revenue Service in
meeting its objectives;
‘‘(iii) the budget for the Internal Revenue Service
and whether it supports its objectives;
‘‘(iv) progress of the Internal Revenue Service in
improving taxpayer service and compliance;
‘‘(v) progress of the Internal Revenue Service on
technology modernization; and
‘‘(vi) the annual filing season.’’.
Subtitle B—Century Date Change

SEC. 4011. CENTURY DATE CHANGE.
It is the sense of the Congress that—
(1) the Internal Revenue Service should place a high prior-
ity on resolving the century date change computing problems;
and
(2) the Internal Revenue Service efforts to resolve the cen-

tury date change computing problems should be funded fully
to provide for certain resolution of such problems.
Subtitle C—Tax Law Complexity

SEC. 4021. ROLE OF THE INTERNAL REVENUE SERVICE.
It is the sense of the Congress that the Internal Revenue
Service should provide Congress with an independent view of tax
administration, and that during the legislative process, the tax
writing committees of Congress should hear from front-line tech-
nical experts at the Internal Revenue Service with respect to the
administrability of pending amendments to the Internal Revenue
Code of 1986.
SEC. 4022. TAX LAW COMPLEXITY ANALYSIS.
(a) COMMISSIONER STUDY.— 26 USC 7801
(1) IN GENERAL.—The Commissioner of Internal Revenue note.
shall conduct each year after 1998 an analysis of the sources
of complexity in administration of the Federal tax laws. Such
analysis may include an analysis of—
(A) questions frequently asked by taxpayers with
respect to return filing;
(B) common errors made by taxpayers in filling out
their returns;
(C) areas of law which frequently result in disagree-
ments between taxpayers and the Internal Revenue
Service;
(D) major areas of law in which there is no (or incom-
plete) published guidance or in which the law is uncertain;
(E) areas in which revenue officers make frequent
errors interpreting or applying the law;
(F) the impact of recent legislation on complexity; and
(G) forms supplied by the Internal Revenue Service,
including the time it takes for taxpayers to complete and
review forms, the number of taxpayers who use each form,
and how recent legislation has affected the time it takes
to complete and review forms.
(2) REPORT.—The Commissioner shall not later than March Deadline.
1 of each year report the results of the analysis conducted
under paragraph (1) for the preceding year to the Committee
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate. The report shall include
any recommendations—
(A) for reducing the complexity of the administration
of Federal tax laws; and
(B) for repeal or modification of any provision the
Commissioner believes adds undue and unnecessary
complexity to the administration of the Federal tax laws.
(b) ANALYSIS TO ACCOMPANY CERTAIN LEGISLATION.— 26 USC 8022
(1) IN GENERAL.—The Joint Committee on Taxation, in note.
consultation with the Internal Revenue Service and the Depart-
ment of the Treasury, shall include a tax complexity analysis
in each report for legislation, or provide such analysis to mem-
bers of the committee reporting the legislation as soon as prac-
ticable after the report is filed, if—
(A) such legislation is reported by the Committee on

Finance in the Senate, the Committee on Ways and Means
of the House of Representatives, or any committee of con-
ference; and
(B) such legislation includes a provision which would
directly or indirectly amend the Internal Revenue Code
of 1986 and which has widespread applicability to individ-
uals or small businesses.
(2) TAX COMPLEXITY ANALYSIS.—For purposes of this sub-
section, the term ‘‘tax complexity analysis’’ means, with respect
to any legislation, a report on the complexity and administrative
difficulties of each provision described in paragraph (1)(B)
which—
(A) includes—
(i) an estimate of the number of taxpayers affected
by the provision; and
(ii) if applicable, the income level of taxpayers
affected by the provision; and
(B) should include (if determinable)—
(i) the extent to which tax forms supplied by the
Internal Revenue Service would require revision and
whether any new forms would be required;
(ii) the extent to which taxpayers would be
required to keep additional records;
(iii) the estimated cost to taxpayers to comply with
the provision;
(iv) the extent to which enactment of the provision
would require the Internal Revenue Service to develop
or modify regulatory guidance;
(v) the extent to which the provision may result
in disagreements between taxpayers and the Internal
Revenue Service; and
(vi) any expected impact on the Internal Revenue
Service from the provision (including the impact on
internal training, revision of the Internal Revenue
Manual, reprogramming of computers, and the extent
to which the Internal Revenue Service would be
required to divert or redirect resources in response
to the provision).
(3) LEGISLATION SUBJECT TO POINT OF ORDER IN HOUSE
OF REPRESENTATIVES.—
(A) LEGISLATION REPORTED BY COMMITTEE ON WAYS
AND MEANS.—Clause 2(l) of rule XI of the Rules of the
House of Representatives is amended by adding at the
end the following new subparagraph:
‘‘(8) The report of the Committee on Ways and Means on
any bill or joint resolution containing any provision amending the
Internal Revenue Code of 1986 shall include a Tax Complexity
Analysis prepared by the Joint Committee on Taxation in accord-
ance with section 4022(b) of the Internal Revenue Service
Restructuring and Reform Act of 1998 unless the Committee on
Ways and Means causes to have such Analysis printed in the
Congressional Record prior to the consideration of the bill or joint
resolution.’’.
(B) CONFERENCE REPORTS.—Rule XXVIII of the Rules
of the House of Representatives is amended by adding
at the end the following new clause:
‘‘7. It shall not be in order to consider the report of a committee

of conference which contains any provision amending the Internal
Revenue Code of 1986 unless—
‘‘(a) the accompanying joint explanatory statement contains
a Tax Complexity Analysis prepared by the Joint Committee
on Taxation in accordance with section 4022(b) of the Internal
Revenue Service Restructuring and Reform Act of 1998; or
‘‘(b) such Analysis is printed in the Congressional Record
prior to the consideration of the report.’’.
(C) RULES OF HOUSE OF REPRESENTATIVES.—This para-
graph is enacted by the House of Representatives—
(i) as an exercise of the rulemaking power of the
House of Representatives, and as such it is deemed
a part of the Rules of the House, and it supersedes
other rules only to the extent that it is inconsistent
therewith; and
(ii) with full recognition of the constitutional right
of the House to change its rules at any time, in the
same manner and to the same extent as in the case
of any other rule of the House.
(4) EFFECTIVE DATE.—This subsection shall apply to legisla- Applicability.
tion considered on and after January 1, 1999.
TITLE V—ADDITIONAL PROVISIONS

SEC. 5001. LOWER CAPITAL GAINS RATES TO APPLY TO PROPERTY
HELD MORE THAN 1 YEAR.
(a) GENERAL RULE.—
(1) Paragraph (5) of section 1(h) is amended to read as
follows:
‘‘(5) 28-PERCENT RATE GAIN.—For purposes of this sub-
section, the term ‘28-percent rate gain’ means the excess (if
any) of—
‘‘(A) the sum of—
‘‘(i) collectibles gain; and
‘‘(ii) section 1202 gain, over
‘‘(B) the sum of—
‘‘(i) collectibles loss;
‘‘(ii) the net short-term capital loss; and
‘‘(iii) the amount of long-term capital loss carried
under section 1212(b)(1)(B) to the taxable year.’’.
(2) Subparagraph (A) of section 1(h)(6) is amended by
striking ‘‘18 months’’ and inserting ‘‘1 year’’.
(3) Clauses (i) and (ii) of section 1(h)(7)(A) are amended
to read as follows:
‘‘(i) the amount of long-term capital gain (not other-
wise treated as ordinary income) which would be treat-
ed as ordinary income if section 1250(b)(1) included
all depreciation and the applicable percentage under
section 1250(a) were 100 percent, over
‘‘(ii) the excess (if any) of—
‘‘(I) the amount described in paragraph (5)(B);
over
‘‘(II) the amount described in paragraph
(5)(A).’’.
(4) So much of paragraph (13) of section 1(h) as precedes

subparagraph (C) is amended to read as follows:
‘‘(13) SPECIAL RULES.—
‘‘(A) DETERMINATION OF 28-PERCENT RATE GAIN.—In
applying paragraph (5)—
‘‘(i) the amount determined under subparagraph
(A) of paragraph (5) shall include long-term capital
gain (not otherwise described in such subparagraph)—
‘‘(I) which is properly taken into account for
the portion of the taxable year before May 7, 1997;
or
‘‘(II) from property held not more than 18
months which is properly taken into account for
the portion of the taxable year after July 28, 1997,
and before January 1, 1998;
‘‘(ii) the amount determined under subparagraph
(B) of paragraph (5) shall include long-term capital
loss (not otherwise described in such subparagraph)—
‘‘(I) which is properly taken into account for
the portion of the taxable year before May 7, 1997;
or
‘‘(II) from property held not more than 18
months which is properly taken into account for
the portion of the taxable year after July 28, 1997,
and before January 1, 1998; and
Applicability. ‘‘(iii) subparagraph (B) of paragraph (5) (as in effect
immediately before the enactment of this clause) shall
apply to amounts properly taken into account before
January 1, 1998.
‘‘(B) DETERMINATION OF UNRECAPTURED SECTION 1250
GAIN.—The amount determined under paragraph (7)(A)
shall not include gain—
‘‘(i) which is properly taken into account for the
portion of the taxable year before May 7, 1997; or
‘‘(ii) from property held not more than 18 months
which is properly taken into account for the portion
of the taxable year after July 28, 1997, and before
January 1, 1998.’’.
(5) Paragraphs (11) and (12) of section 1223, and section
1235(a), are each amended by striking ‘‘18 months’’ each place
it appears and inserting ‘‘1 year’’.
26 USC 1 note. (b) EFFECTIVE DATES.—
Applicability. (1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
ending after December 31, 1997.
(2) SUBSECTION (a)(5).—The amendments made by sub-
section (a)(5) shall take effect on January 1, 1998.
SEC. 5002. CLARIFICATION OF EXCLUSION OF MEALS FOR CERTAIN
EMPLOYEES.
(a) IN GENERAL.—Subsection (b) of section 119 (relating to
meals or lodging furnished for the convenience of the employer)
‘‘(4) MEALS FURNISHED TO EMPLOYEES ON BUSINESS PREM-
ISES WHERE MEALS OF MOST EMPLOYEES ARE OTHERWISE
EXCLUDABLE.—All meals furnished on the business premises
of an employer to such employer’s employees shall be treated
as furnished for the convenience of the employer if, without

regard to this paragraph, more than half of the employees
to whom such meals are furnished on such premises are fur-
nished such meals for the convenience of the employer.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a) Applicability.
shall apply to taxable years beginning before, on, or after the 26 USC 119 note.
SEC. 5003. CLARIFICATION OF DESIGNATION OF NORMAL TRADE
RELATIONS.
(a) FINDINGS AND POLICY.— 19 USC 2481
(1) FINDINGS.—The Congress makes the following findings: note.
(A) Since the 18th century, the principle of non-
discrimination among countries with which the United
States has trade relations, commonly referred to as ‘‘most-
favored-nation’’ treatment, has been a cornerstone of
United States trade policy.
(B) Although the principle remains firmly in place
as a fundamental concept in United States trade relations,
the term ‘‘most-favored-nation’’ is a misnomer which has
led to public misunderstanding.
(C) It is neither the purpose nor the effect of the
most-favored-nation principle to treat any country as ‘‘most
favored’’. To the contrary, the principle reflects the
intention to confer on a country the same trade benefits
that are conferred on any other country, that is, the
intention not to discriminate among trading partners.
(D) The term ‘‘normal trade relations’’ is a more
accurate description of the principle of nondiscrimination
as it applies to the tariffs applicable generally to imports
from United States trading partners, that is, the general
rates of duty set forth in column 1 of the Harmonized
Tariff Schedule of the United States.
(2) POLICY.—It is the sense of the Congress that—
(A) the language used in United States laws, treaties,
agreements, executive orders, directives, and regulations
should more clearly and accurately reflect the underlying
principles of United States trade policy; and
(B) accordingly, the term ‘‘normal trade relations’’
should, where appropriate, be substituted for the term
‘‘most-favored-nation’’.
(b) CHANGE IN TERMINOLOGY.—
(1) TRADE EXPANSION ACT OF 1962.—The heading for section
251 of the Trade Expansion Act of 1962 (19 U.S.C. 1881)
is amended to read as follows: ‘‘NORMAL TRADE RELATIONS’’.
(2) TRADE ACT OF 1974.—(A) Section 402 of the Trade Act
of 1974 (19 U.S.C. 2432) is amended by striking ‘‘(most-favored-
nation treatment)’’ each place it appears and inserting ‘‘(normal
trade relations)’’.
(B) Section 601(9) of the Trade Act of 1974 (19 U.S.C.
2481(9)) is amended by striking ‘‘most-favored-nation treat-
ment’’ and inserting ‘‘trade treatment based on normal trade
relations (known under international law as most-favored-
nation treatment)’’.
(3) CFTA.—Section 302(a)(3)(C) of the United States Can-
ada Free-Trade Agreement Implementation Act of 1988 (19
U.S.C. 2112 note) is amended by striking ‘‘the most-favored-
nation rate of duty’’ each place it appears and inserting ‘‘the

general subcolumn of the column 1 rate of duty set forth in
the Harmonized Tariff Schedule of the United States’’.
(4) NAFTA.—Section 202(n) of the North American Free
Trade Agreement Implementation Act (19 U.S.C. 3332(n)) is
amended by striking ‘‘most-favored-nation’’.
(5) URUGUAY ROUND AGREEMENTS ACT.—Section 135(a)(2)
of the Uruguay Round Agreements Act (19 U.S.C. 3555(a)(2))
is amended by striking ‘‘most-favored-nation’’ and inserting
‘‘normal trade relations’’.
(6) SEED ACT.—Section 2(c)(11) of the Support for East
European Democracy (SEED) Act of 1989 (22 U.S.C.
5401(c)(11)) is amended—
(A) by striking ‘‘(commonly referred to as ‘most favored
nation status’)’’; and
(B) by striking ‘‘MOST FAVORED NATION TRADE STATUS’’
in the heading and inserting ‘‘NORMAL TRADE RELATIONS’’.
(7) UNITED STATES-HONG KONG POLICY ACT OF 1992.—
Section 103(4) of the United States-Hong Kong Policy Act of
1992 (22 U.S.C. 5713(4)) is amended by striking ‘‘(commonly
referred to as ‘most-favored-nation status’)’’.
19 USC 2481 (c) SAVINGS PROVISIONS.—Nothing in this section shall affect
note. the meaning of any provision of law, Executive order, Presidential
proclamation, rule, regulation, delegation of authority, other docu-
ment, or treaty or other international agreement of the United
States relating to the principle of ‘‘most-favored-nation’’ (or ‘‘most
favored nation’’) treatment. Any Executive order, Presidential
proclamation, rule, regulation, delegation of authority, other docu-
ment, or treaty or other international agreement of the United
States that has been issued, made, granted, or allowed to become
effective and that is in effect on the effective date of this Act,
or was to become effective on or after the effective date of this
Act, shall continue in effect according to its terms until modified,
terminated, superseded, set aside, or revoked in accordance with
law.
Tax Technical TITLE VI—TECHNICAL CORRECTIONS

Corrections Act
of 1998.
SEC. 6001. SHORT TITLE; COORDINATION WITH OTHER TITLES.
26 USC 1 note. (a) SHORT TITLE.—This title may be cited as the ‘‘Tax Technical
Corrections Act of 1998’’.
26 USC 1 note. (b) COORDINATION WITH OTHER TITLES.—For purposes of apply-
ing the amendments made by any title of this Act other than
this title, the provisions of this title shall be treated as having
been enacted immediately before the provisions of such other titles.
SEC. 6002. DEFINITIONS.
For purposes of this title—
(1) 1986 CODE.—The term ‘‘1986 Code’’ means the Internal
Revenue Code of 1986.
(2) 1997 ACT.—The term ‘‘1997 Act’’ means the Taxpayer
Relief Act of 1997.
SEC. 6003. AMENDMENTS RELATED TO TITLE I OF 1997 ACT.
(a) AMENDMENTS RELATED TO SECTION 101(a) OF 1997 ACT.—
(1) Subsection (d) of section 24 of the 1986 Code is
amended—
(A) by striking paragraphs (3) and (4);

(B) by redesignating paragraph (5) as paragraph (3);
and
(C) by striking paragraphs (1) and (2) and inserting
the following new paragraphs:
‘‘(1) IN GENERAL.—In the case of a taxpayer with three
or more qualifying children for any taxable year, the aggregate
credits allowed under subpart C shall be increased by the
lesser of—
‘‘(A) the credit which would be allowed under this
section without regard to this subsection and the limitation
under section 26(a); or
‘‘(B) the amount by which the aggregate amount of
credits allowed by this subpart (without regard to this
subsection) would increase if the limitation imposed by
section 26(a) were increased by the excess (if any) of—
‘‘(i) the taxpayer’s Social Security taxes for the
taxable year, over
‘‘(ii) the credit allowed under section 32 (deter-
mined without regard to subsection (n)) for the taxable
year.
The amount of the credit allowed under this subsection shall
not be treated as a credit allowed under this subpart and
shall reduce the amount of credit otherwise allowable under
subsection (a) without regard to section 26(a).
‘‘(2) REDUCTION OF CREDIT TO TAXPAYER SUBJECT TO ALTER-
NATIVE MINIMUM TAX.—The credit determined under this sub-
section for the taxable year shall be reduced by the excess
(if any) of—
‘‘(A) the amount of tax imposed by section 55 (relating
to alternative minimum tax) with respect to such taxpayer
for such taxable year, over
‘‘(B) the amount of the reduction under section 32(h)
with respect to such taxpayer for such taxable year.’’.
(2) Paragraph (3) of section 24(d) of the 1986 Code (as
redesignated by paragraph (1)) is amended by striking ‘‘para-
graph (3)’’ and inserting ‘‘paragraph (1)’’.
(b) AMENDMENTS RELATED TO SECTION 101(b) OF 1997 ACT.—
(1) The subsection (m) of section 32 of the 1986 Code
added by section 101(b) of the 1997 Act is amended to read
as follows:
‘‘(n) SUPPLEMENTAL CHILD CREDIT.—
‘‘(1) IN GENERAL.—In the case of a taxpayer with respect
to whom a credit is allowed under section 24(a) for the taxable
year, the credit otherwise allowable under this section shall
be increased by the lesser of—
‘‘(A) the excess of—
‘‘(i) the credits allowed under subpart A (deter-
mined after the application of section 26 and without
regard to this subsection), over
‘‘(ii) the credits which would be allowed under
subpart A after the application of section 26, deter-
mined without regard to section 24 and this subsection;
or
‘‘(B) the excess of—
‘‘(i) the sum of the credits allowed under this part

(determined without regard to sections 31, 33, and
34 and this subsection), over
‘‘(ii) the sum of the regular tax and the Social
Security taxes (as defined in section 24(d)).
The credit determined under this subsection shall be allowed
without regard to any other provision of this section, including
subsection (d).
‘‘(2) COORDINATION WITH OTHER CREDITS.—The amount of
the credit under this subsection shall reduce the amount of
the credits otherwise allowable under subpart A for the taxable
year (determined after the application of section 26), but the
amount of the credit under this subsection (and such reduction)
shall not be taken into account in determining the amount
of any other credit allowable under this part.’’.
SEC. 6004. AMENDMENTS RELATED TO TITLE II OF 1997 ACT.
(a) AMENDMENTS RELATED TO SECTION 201 OF 1997 ACT.—
(1) The item relating to section 25A in the table of sections
for subpart A of part IV of subchapter A of chapter 1 of
the 1986 Code is amended to read as follows:
‘‘Sec. 25A. Hope and Lifetime Learning credits.’’.
(2) Subsection (a) of section 6050S of the 1986 Code is
amended to read as follows:
‘‘(a) IN GENERAL.—Any person—
‘‘(1) which is an eligible educational institution—
‘‘(A) which receives payments for qualified tuition and
related expenses with respect to any individual for any
calendar year; or
‘‘(B) which makes reimbursements or refunds (or simi-
lar amounts) to any individual of qualified tuition and
related expenses;
‘‘(2) which is engaged in a trade or business of making
payments to any individual under an insurance arrangement
as reimbursements or refunds (or similar amounts) of qualified
tuition and related expenses; or
‘‘(3) except as provided in regulations, which is engaged
in a trade or business and, in the course of which, receives
from any individual interest aggregating $600 or more for any
calendar year on one or more qualified education loans,
shall make the return described in subsection (b) with respect
to the individual at such time as the Secretary may by regulations
prescribe.’’.
26 USC 6724. (3) Subparagraph (A) of section 201(c)(2) of the 1997 Act
‘‘(A) Subparagraph (B) of section 6724(d)(1) (relating
to definitions) is amended by redesignating clauses (x)
through (xv) as clauses (xi) through (xvi), respectively, and
by inserting after clause (ix) the following new clause:
‘‘ ‘(x) section 6050S (relating to returns relating
to payments for qualified tuition and related
expenses),’ ’’.
(b) AMENDMENTS RELATED TO SECTION 202 OF 1997 ACT.—
(1) Paragraph (1) of section 221(e) of the 1986 Code is
amended by inserting ‘‘by the taxpayer solely’’ after ‘‘incurred’’
the first place it appears.
(2) Subsection (d) of section 221 of the 1986 Code

is amended by adding at the end the following new sen-
tence: ‘‘Such 60 months shall be determined in the manner
prescribed by the Secretary in the case of multiple loans
which are refinanced by, or serviced as, a single loan and
in the case of loans incurred before the date of the enact-
ment of this section.’’.
(c) AMENDMENTS RELATED TO SECTION 211 OF 1997 ACT.—
(1) Paragraph (3) of section 135(c) of the 1986 Code is
‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.—The term
‘eligible educational institution’ has the meaning given such
term by section 529(e)(5).’’.
(2) Subparagraph (A) of section 529(c)(3) of the 1986 Code
is amended by striking ‘‘section 72(b)’’ and inserting ‘‘section
72’’.
‘‘(2) MEMBER OF FAMILY.—The term ‘member of the family’
means, with respect to any designated beneficiary—
‘‘(A) the spouse of such beneficiary;
‘‘(B) an individual who bears a relationship to such
beneficiary which is described in paragraphs (1) through
(8) of section 152(a); and
‘‘(C) the spouse of any individual described in subpara-
graph (B).’’.
(d) AMENDMENTS RELATED TO SECTION 213 OF 1997 ACT.—
(1) Section 530(b)(1) of the 1986 Code (defining education
individual retirement account) is amended by inserting ‘‘an
individual who is’’ before ‘‘the designated beneficiary’’ in the
material preceding subparagraph (A).
(2)(A) Section 530(b)(1)(E) of the 1986 Code (defining edu-
cation individual retirement account) is amended to read as
follows:
‘‘(E) Except as provided in subsection (d)(7), any bal-
ance to the credit of the designated beneficiary on the
date on which the beneficiary attains age 30 shall be
distributed within 30 days after such date to the beneficiary
or, if the beneficiary dies before attaining age 30, shall
be distributed within 30 days after the date of death of
such beneficiary.’’.
(B) Paragraph (7) of section 530(d) of the 1986 Code is
amended by inserting at the end the following new sentence:
‘‘In applying the preceding sentence, members of the family
(as so defined) of the designated beneficiary shall be treated
in the same manner as the spouse under such paragraph (8).’’.
(C) Subsection (d) of section 530 of the 1986 Code is
‘‘(8) DEEMED DISTRIBUTION ON REQUIRED DISTRIBUTION
DATE.—In any case in which a distribution is required under
subsection (b)(1)(E), any balance to the credit of a designated
beneficiary as of the close of the 30-day period referred to
in such subsection for making such distribution shall be deemed
distributed at the close of such period.’’.
(3)(A) Paragraph (1) of section 530(d) of the 1986 Code
is amended by striking ‘‘section 72(b)’’ and inserting ‘‘section
72’’.
(B) Subsection (e) of section 72 of the 1986 Code is amended

by inserting after paragraph (8) the following new paragraph:
Applicability. ‘‘(9) EXTENSION OF PARAGRAPH (2)(B) TO QUALIFIED STATE
TUITION PROGRAMS AND EDUCATIONAL INDIVIDUAL RETIREMENT
ACCOUNTS.—Notwithstanding any other provision of this sub-
section, paragraph (2)(B) shall apply to amounts received under
a qualified State tuition program (as defined in section 529(b))
or under an education individual retirement account (as defined
in section 530(b)). The rule of paragraph (8)(B) shall apply
for purposes of this paragraph.’’.
(4) Paragraph (2) of section 135(d) of the 1986 Code is
‘‘(2) COORDINATION WITH OTHER HIGHER EDUCATION BENE-
FITS.—The amount of the qualified higher education expenses
otherwise taken into account under subsection (a) with respect
to the education of an individual shall be reduced (before the
application of subsection (b)) by—
‘‘(A) the amount of such expenses which are taken
into account in determining the credit allowable to the
taxpayer or any other person under section 25A with
respect to such expenses; and
‘‘(B) the amount of such expenses which are taken
into account in determining the exclusion under section
530(d)(2).’’.
(5) Section 530(d)(2) of the 1986 Code (relating to distribu-
tions for qualified higher education expenses) is amended by
adding at the end the following new subparagraph:
‘‘(D) DISALLOWANCE OF EXCLUDED AMOUNTS AS CREDIT
OR DEDUCTION.—No deduction or credit shall be allowed
to the taxpayer under any other section of this chapter
for any qualified education expenses to the extent taken
into account in determining the amount of the exclusion
under this paragraph.’’.
(6) Section 530(d)(4)(B) of the 1986 Code (relating to excep-
tions) is amended by striking ‘‘or’’ at the end of clause (ii),
by striking the period at the end of clause (iii) and inserting
‘‘; or’’, and by adding at the end the following new clause:
‘‘(iv) an amount which is includible in gross income
solely because the taxpayer elected under paragraph
(2)(C) to waive the application of paragraph (2) for
the taxable year.’’.
(7) So much of section 530(d)(4)(C) of the 1986 Code as
precedes clause (ii) thereof is amended to read as follows:
‘‘(C) CONTRIBUTIONS RETURNED BEFORE DUE DATE OF
RETURN.—Subparagraph (A) shall not apply to the distribu-
tion of any contribution made during a taxable year on
behalf of the designated beneficiary if—
‘‘(i) such distribution is made on or before the
day prescribed by law (including extensions of time)
for filing the beneficiary’s return of tax for the taxable
year or, if the beneficiary is not required to file such
a return, the 15th day of the 4th month of the taxable
year following the taxable year; and’’.
(8)(A) Paragraph (5) of section 530(d) of the 1986 Code
is amended by striking the first sentence and inserting the
following new sentence: ‘‘Paragraph (1) shall not apply to any
amount paid or distributed from an education individual retire-

ment account to the extent that the amount received is paid,
not later than the 60th day after the date of such payment
or distribution, into another education individual retirement
account for the benefit of the same beneficiary or a member
of the family (within the meaning of section 529(e)(2)) of such
beneficiary who has not attained age 30 as of such date.’’.
(B) Paragraph (6) of section 530(d) of the 1986 Code is
amended by inserting before the period ‘‘and has not attained
age 30 as of the date of such change’’.
(9) Subparagraph (C) of section 135(c)(2) of the 1986 Code
is amended—
(A) by inserting ‘‘AND EDUCATION INDIVIDUAL RETIRE-
MENT ACCOUNTS’’ in the heading after ‘‘PROGRAM’’; and
(B) by striking ‘‘section 529(c)(3)(A)’’ and inserting
‘‘section 72’’.
(10)(A) Paragraph (1) of section 4973(e) of the 1986 Code
‘‘(1) IN GENERAL.—In the case of education individual retire-
ment accounts maintained for the benefit of any one beneficiary,
the term ‘excess contributions’ means the sum of—
‘‘(A) the amount by which the amount contributed for
the taxable year to such accounts exceeds $500 (or, if
less, the sum of the maximum amounts permitted to be
contributed under section 530(c) by the contributors to
such accounts for such year);
‘‘(B) if any amount is contributed (other than a con-
tribution described in section 530(b)(2)(B)) during such year
to a qualified State tuition program for the benefit of
such beneficiary, any amount contributed to such accounts
for such taxable year; and
‘‘(C) the amount determined under this subsection for
the preceding taxable year, reduced by the sum of—
‘‘(i) the distributions out of the accounts for the
taxable year (other than rollover distributions); and
‘‘(ii) the excess (if any) of the maximum amount
which may be contributed to the accounts for the tax-
able year over the amount contributed to the accounts
for the taxable year.’’.
(B) Paragraph (2) of section 4973(e) of the 1986 Code is
amended by striking subparagraph (B) and by redesignating
subparagraph (C) as subparagraph (B).
(e) AMENDMENTS RELATED TO SECTION 224 OF 1997 ACT.—
(1) Clauses (vi) and (vii) of section 170(e)(6)(B) of the 1986
Code are each amended by striking ‘‘entity’s’’ and inserting
‘‘donee’s’’.
(2) Clause (iv) of section 170(e)(6)(B) of the 1986 Code
is amended by striking ‘‘organization or entity’’ and inserting
‘‘donee’’.
(3) Subclause (I) of section 170(e)(6)(C)(ii) of the 1986 Code
is amended by striking ‘‘an entity’’ and inserting ‘‘a donee’’.
(4) Section 170(e)(6)(F) of the 1986 Code (relating to termi-
nation) is amended by striking ‘‘1999’’ and inserting ‘‘2000’’.
(f ) AMENDMENTS RELATED TO SECTION 225 OF 1997 ACT.—
(1) The last sentence of section 108(f )(2) of the 1986 Code
‘‘The term ‘student loan’ includes any loan made by an edu-

cational organization described in section 170(b)(1)(A)(ii) or by
an organization exempt from tax under section 501(a) to
refinance a loan to an individual to assist the individual in
attending any such educational organization but only if the
refinancing loan is pursuant to a program of the refinancing
organization which is designed as described in subparagraph
(D)(ii).’’.
(2) Section 108(f )(3) of the 1986 Code is amended by strik-
ing ‘‘(or by an organization described in paragraph (2)(E) from
funds provided by an organization described in paragraph
(2)(D))’’.
(g) AMENDMENTS RELATED TO SECTION 226 OF 1997 ACT.—
26 USC 1397D, (1) Section 226(a) of the 1997 Act is amended by striking
1397F. ‘‘section 1397E’’ and inserting ‘‘section 1397D’’.
(2) Section 1397E(d)(4)(B) of the 1986 Code is amended
by striking ‘‘local education agency as defined’’ and inserting
‘‘local educational agency as defined’’.
(3) Section 1397E is amended by adding at the end the
‘‘(h) CREDIT TREATED AS ALLOWED UNDER PART IV OF SUB-
CHAPTER A.—For purposes of subtitle F, the credit allowed by
this section shall be treated as a credit allowable under part IV
of subchapter A of this chapter.’’.
(4) Subsection (g) of section 1397E of the 1986 Code is
amended by inserting ‘‘(determined without regard to sub-
section (c))’’ after ‘‘section’’.
(5) Subparagraph (D) of section 42( j)(4) of the 1986 Code
is amended by striking ‘‘subpart A, B, D, or G of this part’’
and inserting ‘‘this chapter’’.
(6) Paragraph (4) of section 49(b) of the 1986 Code is
amended by striking ‘‘subpart A, B, D, or G’’ and inserting
‘‘this chapter’’.
(7) Subparagraph (C) of section 50(a)(5) of the 1986 Code
is amended by striking ‘‘subpart A, B, D, or G’’ and inserting
‘‘this chapter’’.
SEC. 6005. AMENDMENTS RELATED TO TITLE III OF 1997 ACT.
(1) Section 219(g) of the 1986 Code is amended—
(A) by inserting ‘‘or the individual’s spouse’’ after
‘‘individual’’ in paragraph (1); and
(B) by striking paragraph (7) and inserting:
‘‘(7) SPECIAL RULE FOR SPOUSES WHO ARE NOT ACTIVE
PARTICIPANTS.—If this subsection applies to an individual for
any taxable year solely because their spouse is an active partici-
pant, then, in applying this subsection to the individual (but
not their spouse)—
‘‘(A) the applicable dollar amount under paragraph
(3)(B)(i) shall be $150,000; and
‘‘(B) the amount applicable under paragraph (2)(A)(ii)
shall be $10,000.’’.
26 USC 219. (2) Paragraph (2) of section 301(a) of the 1997 Act is
amended by inserting ‘‘after ‘$10,000’ ’’ before the period.
(1) Section 408A(c)(3)(A) of the 1986 Code is amended
by striking ‘‘shall be reduced’’ and inserting ‘‘shall not exceed
an amount equal to the amount determined under paragraph

(2)(A) for such taxable year, reduced’’.
(2) Section 408A(c)(3) of the 1986 Code (relating to limits
based on modified adjusted gross income) is amended—
(A) by inserting ‘‘or a married individual filing a sepa-
rate return’’ after ‘‘joint return’’ in subparagraph (A)(ii),
(B) in subparagraph (B)—
(i) by inserting ‘‘, for the taxable year of the dis-
tribution to which such contribution relates’’ after ‘‘if ’’;
and
(ii) by striking ‘‘for such taxable year’’ in clause
(i), and
(C) by striking ‘‘and the deduction under section 219
shall be taken into account’’ in subparagraph (C)(i).
(3)(A) Section 408A(d)(2) of the 1986 Code (defining quali-
fied distribution) is amended by striking subparagraph (B) and
inserting the following new subparagraph:
‘‘(B) DISTRIBUTIONS WITHIN NONEXCLUSION PERIOD.—
A payment or distribution from a Roth IRA shall not be
treated as a qualified distribution under subparagraph (A)
if such payment or distribution is made within the 5-
taxable year period beginning with the first taxable year
for which the individual made a contribution to a Roth
IRA (or such individual’s spouse made a contribution to
a Roth IRA) established for such individual.’’.
(B) Section 408A(d)(2) of the 1986 Code is amended by
adding at the end the following new subparagraph:
‘‘(C) DISTRIBUTIONS OF EXCESS CONTRIBUTIONS AND
EARNINGS.—The term ‘qualified distribution’ shall not
include any distribution of any contribution described in
section 408(d)(4) and any net income allocable to the con-
tribution.’’.
(4) Section 408A(d)(3) of the 1986 Code (relating to rollovers
from IRAs other than Roth IRAs) is amended—
(A) by striking clause (iii) of subparagraph (A) and
inserting:
‘‘(iii) unless the taxpayer elects not to have this
clause apply for any taxable year, any amount required
to be included in gross income for such taxable year
by reason of this paragraph for any distribution before
January 1, 1999, shall be so included ratably over
the 4-taxable year period beginning with such taxable
year.
Any election under clause (iii) for any distributions during
a taxable year may not be changed after the due date
for such taxable year.’’; and
(B) by adding at the end the following new subpara-
graph:
‘‘(F) SPECIAL RULES FOR CONTRIBUTIONS TO WHICH
4-YEAR AVERAGING APPLIES.—In the case of a qualified roll-
over contribution to a Roth IRA of a distribution to which
subparagraph (A)(iii) applied, the following rules shall
apply:
‘‘(i) ACCELERATION OF INCLUSION.—
‘‘(I) IN GENERAL.—The amount required to be
included in gross income for each of the first 3
taxable years in the 4-year period under subpara-

graph (A)(iii) shall be increased by the aggregate
distributions from Roth IRAs for such taxable year
which are allocable under paragraph (4) to the
portion of such qualified rollover contribution
required to be included in gross income under
subparagraph (A)(i).
‘‘(II) LIMITATION ON AGGREGATE AMOUNT
INCLUDED.—The amount required to be included
in gross income for any taxable year under
subparagraph (A)(iii) shall not exceed the aggre-
gate amount required to be included in gross
income under subparagraph (A)(iii) for all taxable
years in the 4-year period (without regard to sub-
clause (I)) reduced by amounts included for all
preceding taxable years.
‘‘(ii) DEATH OF DISTRIBUTEE.—
‘‘(I) IN GENERAL.—If the individual required
to include amounts in gross income under such
subparagraph dies before all of such amounts are
included, all remaining amounts shall be included
in gross income for the taxable year which includes
the date of death.
‘‘(II) SPECIAL RULE FOR SURVIVING SPOUSE.—
If the spouse of the individual described in sub-
clause (I) acquires the individual’s entire interest
in any Roth IRA to which such qualified rollover
contribution is properly allocable, the spouse may
elect to treat the remaining amounts described
in subclause (I) as includible in the spouse’s gross
income in the taxable years of the spouse ending
with or within the taxable years of such individual
in which such amounts would otherwise have been
includible. Any such election may not be made
or changed after the due date for the spouse’s
taxable year which includes the date of death.
‘‘(G) SPECIAL RULE FOR APPLYING SECTION 72.—
‘‘(i) IN GENERAL.—If—
‘‘(I) any portion of a distribution from a Roth
IRA is properly allocable to a qualified rollover
contribution described in this paragraph; and
‘‘(II) such distribution is made within the 5-
taxable year period beginning with the taxable
year in which such contribution was made,
then section 72(t) shall be applied as if such portion
were includible in gross income.
‘‘(ii) LIMITATION.—Clause (i) shall apply only to
the extent of the amount of the qualified rollover con-
tribution includible in gross income under subpara-
graph (A)(i).’’.
(5)(A) Section 408A(d)(4) of the 1986 Code is amended
to read as follows:
‘‘(4) AGGREGATION AND ORDERING RULES.—
‘‘(A) AGGREGATION RULES.—Section 408(d)(2) shall be
applied separately with respect to Roth IRAs and other
individual retirement plans.
‘‘(B) ORDERING RULES.—For purposes of applying this

section and section 72 to any distribution from a Roth
IRA, such distribution shall be treated as made—
‘‘(i) from contributions to the extent that the
amount of such distribution, when added to all previous
distributions from the Roth IRA, does not exceed the
aggregate contributions to the Roth IRA; and
‘‘(ii) from such contributions in the following order:
‘‘(I) Contributions other than qualified rollover
contributions to which paragraph (3) applies.
‘‘(II) Qualified rollover contributions to which
paragraph (3) applies on a first-in, first-out basis.
Any distribution allocated to a qualified rollover contribu-
tion under clause (ii)(II) shall be allocated first to the
portion of such contribution required to be included in
gross income.’’.
(B) Section 408A(d)(1) of the 1986 Code is amended to
read as follows:
‘‘(1) EXCLUSION.—Any qualified distribution from a Roth
IRA shall not be includible in gross income.’’.
(6)(A) Section 408A(d) of the 1986 Code (relating to dis-
tribution rules) is amended by adding at the end the following
new paragraph:
‘‘(6) TAXPAYER MAY MAKE ADJUSTMENTS BEFORE DUE
DATE.—
‘‘(A) IN GENERAL.—Except as provided by the Secretary,
if, on or before the due date for any taxable year, a taxpayer
transfers in a trustee-to-trustee transfer any contribution
to an individual retirement plan made during such taxable
year from such plan to any other individual retirement
plan, then, for purposes of this chapter, such contribution
shall be treated as having been made to the transferee
plan (and not the transferor plan).
‘‘(B) SPECIAL RULES.—
‘‘(i) TRANSFER OF EARNINGS.—Subparagraph (A)
shall not apply to the transfer of any contribution
unless such transfer is accompanied by any net income
allocable to such contribution.
‘‘(ii) NO DEDUCTION.—Subparagraph (A) shall
apply to the transfer of any contribution only to the
extent no deduction was allowed with respect to the
contribution to the transferor plan.’’.
(B) Section 408A(d)(3) of the 1986 Code, as amended by
this subsection, is amended by striking subparagraph (D) and
by redesignating subparagraphs (E), (F), and (G) as subpara-
graphs (D), (E), and (F), respectively.
(7) Section 408A(d) of the 1986 Code, as amended by para-
graph (6), is amended by adding at the end the following
new paragraph:
‘‘(7) DUE DATE.—For purposes of this subsection, the due
date for any taxable year is the date prescribed by law (includ-
ing extensions of time) for filing the taxpayer’s return for such
taxable year.’’.
(8)(A) Section 4973(f ) of the 1986 Code is amended—
(i) by striking ‘‘such accounts’’ in paragraph (1)(A) and
inserting ‘‘Roth IRAs’’; and
(ii) by striking ‘‘to the accounts’’ in paragraph (2)(B)

and inserting ‘‘by the individual to all individual retirement
plans’’.
(B) Section 4973(b) of the 1986 Code is amended—
(i) by inserting ‘‘a contribution to a Roth IRA or’’ after
‘‘other than’’ in paragraph (1)(A); and
(ii) by inserting ‘‘(including the amount contributed
to a Roth IRA)’’ after ‘‘annuities’’ in paragraph (2)(C).
26 USC 4973. (C) Section 302(b) of the 1997 Act is amended by striking
‘‘Section 4973(b)’’ and inserting ‘‘Section 4973’’.
(9) Section 408A of the 1986 Code is amended by adding
at the end the following new subsection:
‘‘(f ) INDIVIDUAL RETIREMENT PLAN.—For purposes of this
section—
‘‘(1) a simplified employee pension or a simple retirement
account may not be designated as a Roth IRA; and
‘‘(2) contributions to any such pension or account shall
not be taken into account for purposes of subsection (c)(2)(B).’’.
(1) Section 72(t)(8)(E) of the 1986 Code is amended—
(A) by striking ‘‘120 days’’ and inserting ‘‘120th day’’;
and
(B) by striking ‘‘60 days’’ and inserting ‘‘60th day’’.
(2)(A) Section 402(c)(4) of the 1986 Code is amended by
striking ‘‘and’’ at the end of subparagraph (A), by striking
the period at the end of subparagraph (B) and inserting ‘‘,
and’’, by inserting at the end the following new subparagraph:
‘‘(C) any hardship distribution described in section
401(k)(2)(B)(i)(IV).’’.
(B) Section 403(b)(8)(B) of the 1986 Code is amended by
inserting ‘‘(including paragraph (4)(C) thereof)’’ after ‘‘section
402(c)’’.
Applicability. (C) The amendments made by this paragraph shall apply
26 USC 402 note. to distributions after December 31, 1998.
(1) Subsection (h) of section 1 of the 1986 Code (relating
to maximum capital gains rate) is amended to read as follows:
‘‘(h) MAXIMUM CAPITAL GAINS RATE.—
‘‘(1) IN GENERAL.—If a taxpayer has a net capital gain
for any taxable year, the tax imposed by this section for such
taxable year shall not exceed the sum of—
‘‘(A) a tax computed at the rates and in the same
manner as if this subsection had not been enacted on
the greater of—
‘‘(i) taxable income reduced by the net capital
gain; or
‘‘(ii) the lesser of—
‘‘(I) the amount of taxable income taxed at
a rate below 28 percent; or
‘‘(II) taxable income reduced by the adjusted
net capital
gain;
‘‘(B) 10 percent of so much of the adjusted net capital
gain (or, if less, taxable income) as does not exceed the
excess (if any) of—
‘‘(i) the amount of taxable income which would

(without regard to this paragraph) be taxed at a rate
below 28 percent, over
‘‘(ii) the taxable income reduced by the adjusted
net capital gain;
‘‘(C) 20 percent of the adjusted net capital gain (or,
if less, taxable income) in excess of the amount on which
a tax is determined under subparagraph (B);
‘‘(D) 25 percent of the excess (if any) of—
‘‘(i) the unrecaptured section 1250 gain (or, if less,
the net capital gain), over
‘‘(I) the sum of the amount on which tax is
determined under subparagraph (A) plus the net
capital gain, over
‘‘(II) taxable income; and
‘‘(E) 28 percent of the amount of taxable income in
excess of the sum of the amounts on which tax is deter-
mined under the preceding subparagraphs of this para-
graph.
‘‘(2) REDUCED CAPITAL GAIN RATES FOR QUALIFIED 5-YEAR
GAIN.—
‘‘(A) REDUCTION IN 10-PERCENT RATE.—In the case of
any taxable year beginning after December 31, 2000, the
rate under paragraph (1)(B) shall be 8 percent with respect
to so much of the amount to which the 10-percent rate
would otherwise apply as does not exceed qualified 5-year
gain, and 10 percent with respect to the remainder of
such amount.
‘‘(B) REDUCTION IN 20-PERCENT RATE.—The rate under
paragraph (1)(C) shall be 18 percent with respect to so
much of the amount to which the 20-percent rate would
otherwise apply as does not exceed the lesser of—
‘‘(i) the excess of qualified 5-year gain over the
amount of such gain taken into account under subpara-
graph (A) of this paragraph; or
‘‘(ii) the amount of qualified 5-year gain (deter-
mined by taking into account only property the holding
period for which begins after December 31, 2000),
and 20 percent with respect to the remainder of such
amount. For purposes of determining under the preceding
sentence whether the holding period of property begins
after December 31, 2000, the holding period of property
acquired pursuant to the exercise of an option (or other
right or obligation to acquire property) shall include the
period such option (or other right or obligation) was held.
‘‘(3) NET CAPITAL GAIN TAKEN INTO ACCOUNT AS INVESTMENT
INCOME.—For purposes of this subsection, the net capital gain
for any taxable year shall be reduced (but not below zero)
by the amount which the taxpayer takes into account as invest-
ment income under section 163(d)(4)(B)(iii).
‘‘(4) ADJUSTED NET CAPITAL GAIN.—For purposes of this
subsection, the term ‘adjusted net capital gain’ means net cap-
ital gain reduced (but not below zero) by the sum of—
‘‘(A) unrecaptured section 1250 gain; and
‘‘(B) 28-percent rate gain.
‘‘(5) 28-PERCENT RATE GAIN.—For purposes of this sub-

section—
‘‘(A) IN GENERAL.—The term ‘28-percent rate gain’
means the excess (if any) of—
‘‘(i) the sum of—
‘‘(I) the aggregate long-term capital gain from
property held for more than 1 year but not more
than 18 months;
‘‘(II) collectibles gain; and
‘‘(III) section 1202 gain, over
‘‘(ii) the sum of—
‘‘(I) the aggregate long-term capital loss (not
described in subclause (IV)) from property referred
to in clause (i)(I);
‘‘(II) collectibles loss;
‘‘(III) the net short-term capital loss; and
‘‘(IV) the amount of long-term capital loss car-
ried under section 1212(b)(1)(B) to the taxable
year.
Applicability. ‘‘(B) SPECIAL RULES.—
‘‘(i) SHORT SALE GAINS AND HOLDING PERIODS.—
Rules similar to the rules of section 1233(b) shall apply
where the substantially identical property has been
held more than 1 year but not more than 18 months;
except that, for purposes of such rules—
‘‘(I) section 1233(b)(1) shall be applied by
substituting ‘18 months’ for ‘1 year’ each place
it appears; and
‘‘(II) the holding period of such property shall
be treated as being 1 year on the day before the
earlier of the date of the closing of the short sale
or the date such property is disposed of.
‘‘(ii) LONG-TERM LOSSES.—Section 1233(d) shall be
applied separately by substituting ‘18 months’ for ‘1
year’ each place it appears.
‘‘(iii) OPTIONS.—A rule similar to the rule of section
1092(f ) shall apply where the stock was held for more
than 18 months.
‘‘(iv) SECTION 1256 CONTRACTS.—Amounts treated
as long-term capital gain or loss under section
1256(a)(3) shall be treated as attributable to property
held for more than 18 months.
‘‘(6) COLLECTIBLES GAIN AND LOSS.—For purposes of this
subsection—
‘‘(A) IN GENERAL.—The terms ‘collectibles gain’ and
‘collectibles loss’ mean gain or loss (respectively) from the
sale or exchange of a collectible (as defined in section
408(m) without regard to paragraph (3) thereof) which
is a capital asset held for more than 18 months but only
to the extent such gain is taken into account in computing
gross income and such loss is taken into account in comput-
ing taxable income.
‘‘(B) PARTNERSHIPS, ETC.—For purposes of subpara-
graph (A), any gain from the sale of an interest in a
partnership, S corporation, or trust which is attributable
to unrealized appreciation in the value of collectibles shall
be treated as gain from the sale or exchange of a collectible.
Rules similar to the rules of section 751 shall apply for Applicability.
purposes of the preceding sentence.
‘‘(7) UNRECAPTURED SECTION 1250 GAIN.—For purposes of
this subsection—
‘‘(A) IN GENERAL.—The term ‘unrecaptured section
1250 gain’ means the excess (if any) of—
‘‘(i) the amount of long-term capital gain (not
otherwise treated as ordinary income) which would
be treated as ordinary income if—
‘‘(I) section 1250(b)(1) included all depreciation
and the applicable percentage under section
1250(a) were 100 percent, and
‘‘(II) only gain from property held for more
than 18 months were taken into account, over
‘‘(I) the amount described in paragraph
(5)(A)(ii), over
‘‘(II) the amount described in paragraph
(5)(A)(i).
‘‘(B) LIMITATION WITH RESPECT TO SECTION 1231 PROP-
ERTY.—The amount described in subparagraph (A)(i) from
sales, exchanges, and conversions described in section
1231(a)(3)(A) for any taxable year shall not exceed the
net section 1231 gain (as defined in section 1231(c)(3))
for such year.
‘‘(8) SECTION 1202 GAIN.—For purposes of this subsection,
the term ‘section 1202 gain’ means an amount equal to the
gain excluded from gross income under section 1202(a).
‘‘(9) QUALIFIED 5-YEAR GAIN.—For purposes of this sub-
section, the term ‘qualified 5-year gain’ means the aggregate
long-term capital gain from property held for more than 5
years. The determination under the preceding sentence shall
be made without regard to collectibles gain, gain described
in paragraph (7)(A)(i), and section 1202 gain.
‘‘(10) COORDINATION WITH RECAPTURE OF NET ORDINARY
LOSSES UNDER SECTION 1231.—If any amount is treated as ordi-
nary income under section 1231(c), such amount shall be allo-
cated among the separate categories of net section 1231 gain
(as defined in section 1231(c)(3)) in such manner as the Sec-
retary may by forms or regulations prescribe.
‘‘(11) REGULATIONS.—The Secretary may prescribe such
regulations as are appropriate (including regulations requiring
reporting) to apply this subsection in the case of sales and
exchanges by pass-thru entities and of interests in such entities.
‘‘(12) PASS-THRU ENTITY DEFINED.—For purposes of this
subsection, the term ‘pass-thru entity’ means—
‘‘(A) a regulated investment company;
‘‘(B) a real estate investment trust;
‘‘(C) an S corporation;
‘‘(D) a partnership;
‘‘(E) an estate or trust;
‘‘(F) a common trust fund;
‘‘(G) a foreign investment company which is described
in section 1246(b)(1) and for which an election is in effect
under section 1247; and
‘‘(H) a qualified electing fund (as defined in section
1295).
‘‘(13) SPECIAL RULES FOR PERIODS DURING 1997.—

‘‘(A) DETERMINATION OF 28-PERCENT RATE GAIN.—In
applying paragraph (5)—
‘‘(i) the amount determined under subclause (I)
of paragraph (5)(A)(i) shall include long-term capital
gain (not otherwise described in paragraph (5)(A)(i))
of the taxable year before May 7, 1997;
‘‘(ii) the amounts determined under subclause (I)
of paragraph (5)(A)(ii) shall include long-term capital
loss (not otherwise described in paragraph (5)(A)(ii))
of the taxable year before May 7, 1997; and
Applicability. ‘‘(iii) clauses (i)(I) and (ii)(I) of paragraph (5)(A)
shall be applied by not taking into account any gain
and loss on property held for more than 1 year but
not more than 18 months which is properly taken
into account for the portion of the taxable year after
May 6, 1997, and before July 29, 1997.
‘‘(B) OTHER SPECIAL RULES.—
‘‘(i) DETERMINATION OF UNRECAPTURED SECTION
1250 GAIN NOT TO INCLUDE PRE-MAY 7, 1997 GAIN.—
The amount determined under paragraph (7)(A)(i) shall
not include gain properly taken into account for the
portion of the taxable year before May 7, 1997.
Applicability. ‘‘(ii) OTHER TRANSITIONAL RULES FOR 18-MONTH
HOLDING PERIOD.—Paragraphs (6)(A) and (7)(A)(i)(II)
shall be applied by substituting ‘1 year’ for ‘18 months’
with respect to gain properly taken into account for
the portion of the taxable year after May 6, 1997,
and before July 29, 1997.
Applicability. ‘‘(C) SPECIAL RULES FOR PASS-THRU ENTITIES.—In
applying this paragraph with respect to any pass-thru
entity, the determination of when gains and loss are prop-
erly taken into account shall be made at the entity level.’’.
‘‘(3) MAXIMUM RATE OF TAX ON NET CAPITAL GAIN OF NON-
CORPORATE TAXPAYERS.—The amount determined under the
first sentence of paragraph (1)(A)(i) shall not exceed the sum
of—
‘‘(A) the amount determined under such first sentence
computed at the rates and in the same manner as if this
paragraph had not been enacted on the taxable excess
reduced by the lesser of—
‘‘(i) the net capital gain; or
‘‘(ii) the sum of—
‘‘(I) the adjusted net capital gain, plus
‘‘(II) the unrecaptured section 1250 gain, plus
‘‘(B) 10 percent of so much of the adjusted net capital
gain (or, if less, taxable excess) as does not exceed the
amount on which a tax is determined under section
1(h)(1)(B), plus
‘‘(C) 20 percent of the adjusted net capital gain (or,
if less, taxable excess) in excess of the amount on which
tax is determined under subparagraph (B), plus
‘‘(D) 25 percent of the amount of taxable excess in

excess of the sum of the amounts on which tax is deter-
mined under the preceding subparagraphs of this para-
graph.
In the case of taxable years beginning after December 31, Applicability.
2000, rules similar to the rules of section 1(h)(2) shall apply
for purposes of subparagraphs (B) and (C). Terms used in
this paragraph which are also used in section 1(h) shall have
the respective meanings given such terms by section 1(h) but
computed with the adjustments under this part.’’.
(3) Section 57(a)(7) of the 1986 Code is amended by adding Applicability.
at the end the following new sentence: ‘‘In the case of stock
the holding period of which begins after December 31, 2000
(determined with the application of the last sentence of section
1(h)(2)(B)), the preceding sentence shall be applied by substitut-
ing ‘28 percent’ for ‘42 percent’.’’.
(4) Paragraphs (11) and (12) of section 1223, and section
1235(a), of the 1986 Code are each amended by striking ‘‘1
year’’ each place it appears and inserting ‘‘18 months’’.
‘‘(2) SPECIAL RULES FOR JOINT RETURNS.—In the case of
a husband and wife who make a joint return for the taxable
year of the sale or exchange of the property—
‘‘(A) $500,000 LIMITATION FOR CERTAIN JOINT Applicability.
RETURNS.—Paragraph (1) shall be applied by substituting
‘$500,000’ for ‘$250,000’ if—
‘‘(i) either spouse meets the ownership require-
ments of subsection (a) with respect to such property;
‘‘(ii) both spouses meet the use requirements of
subsection (a) with respect to such property; and
‘‘(iii) neither spouse is ineligible for the benefits
of subsection (a) with respect to such property by rea-
son of paragraph (3).
‘‘(B) OTHER JOINT RETURNS.—If such spouses do not
meet the requirements of subparagraph (A), the limitation
under paragraph (1) shall be the sum of the limitations
under paragraph (1) to which each spouse would be entitled
if such spouses had not been married. For purposes of
the preceding sentence, each spouse shall be treated as
owning the property during the period that either spouse
owned the property.’’.
(2) Section 121(c)(1) of the 1986 Code is amended to read
as follows:
‘‘(1) IN GENERAL.—In the case of a sale or exchange to
which this subsection applies, the ownership and use require-
ments of subsection (a), and subsection (b)(3), shall not apply;
but the dollar limitation under paragraph (1) or (2) of subsection
(b), whichever is applicable, shall be equal to—
‘‘(A) the amount which bears the same ratio to such
limitation (determined without regard to this paragraph)
as
‘‘(B)(i) the shorter of—
‘‘(I) the aggregate periods, during the 5-year period
ending on the date of such sale or exchange, such
property has been owned and used by the taxpayer

as the taxpayer’s principal residence; or
‘‘(II) the period after the date of the most recent
prior sale or exchange by the taxpayer to which sub-
section (a) applied and before the date of such sale
or exchange, bears to
‘‘(ii) 2 years.’’.
26 USC 121 note. (3) Section 312(d)(2) of the 1997 Act (relating to sales
before date of the enactment) is amended by inserting ‘‘on
or’’ before ‘‘before’’ each place it appears in the text and heading.
(1) Subsection (a) of section 1045 of such Code is amended—
(A) by striking ‘‘an individual’’ and inserting ‘‘a tax-
payer other than a corporation’’; and
(B) by striking ‘‘such individual’’ and inserting ‘‘such
taxpayer’’.
(2) Subsection (b) of section 1045 of the 1986 Code is
‘‘(5) CERTAIN RULES TO APPLY.—Rules similar to the rules
of subsections (f ), (g), (h), (i), ( j), and (k) of section 1202
shall apply.’’.
SEC. 6006. AMENDMENT RELATED TO TITLE IV OF 1997 ACT.
(a) AMENDMENT RELATED TO SECTION 401 OF 1997 ACT.—Para-
graph (1) of section 55(e) of the 1986 Code is amended to read
as follows:
‘‘(1) IN GENERAL.—
‘‘(A) $7,500,000 GROSS RECEIPTS TEST.—The tentative
minimum tax of a corporation shall be zero for any taxable
year if the corporation’s average annual gross receipts for
all 3-taxable-year periods ending before such taxable year
does not exceed $7,500,000. For purposes of the preceding
sentence, only taxable years beginning after December 31,
1993, shall be taken into account.
Applicability. ‘‘(B) $5,000,000 GROSS RECEIPTS TEST FOR FIRST 3-YEAR
PERIOD.—Subparagraph (A) shall be applied by substituting
‘$5,000,000’ for ‘$7,500,000’ for the first 3-taxable-year
period (or portion thereof) of the corporation which is taken
into account under subparagraph (A).
‘‘(C) FIRST TAXABLE YEAR CORPORATION IN EXISTENCE.—
If such taxable year is the first taxable year that such
corporation is in existence, the tentative minimum tax
of such corporation for such year shall be zero.
Applicability. ‘‘(D) SPECIAL RULES.—For purposes of this paragraph,
the rules of paragraphs (2) and (3) of section 448(c) shall
apply.’’.
(b) AMENDMENT RELATED TO SECTION 402 OF 1997 ACT.—
Subsection (c) of section 168 of the 1986 Code is amended—
(1) by striking paragraph (2), and
(2) by striking the portion of such subsection preceding
the table in paragraph (1) and inserting the following:
‘‘(c) APPLICABLE RECOVERY PERIOD.—For purposes of this sec-
tion, the applicable recovery period shall be determined in accord-
ance with the following table:’’.
SEC. 6007. AMENDMENTS RELATED TO TITLE V OF 1997 ACT.
(1) Subsection (c) of section 2631 of the 1986 Code is

‘‘(c) INFLATION ADJUSTMENT.—
‘‘(1) IN GENERAL.—In the case of any calendar year after
1998, the $1,000,000 amount contained in subsection (a) shall
be increased by an amount equal to—
‘‘(A) $1,000,000, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f )(3) for such calendar year by substituting ‘cal-
endar year 1997’ for ‘calendar year 1992’ in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence is
not a multiple of $10,000, such amount shall be rounded to
the next lowest multiple of $10,000.
‘‘(2) ALLOCATION OF INCREASE.—Any increase under para- Applicability.
graph (1) for any calendar year shall apply only to generation-
skipping transfers made during or after such calendar year;
except that no such increase for calendar years after the cal-
endar year in which the transferor dies shall apply to transfers
by such transferor.’’.
(2) Subsection (f ) of section 501 of the 1997 Act is amended 26 USC 2001
by inserting ‘‘(other than the amendment made by subsection note.
(d))’’ after ‘‘this section’’.
(1)(A) Section 2033A of the 1986 Code is hereby moved
to the end of part IV of subchapter A of chapter 11 of the
1986 Code and redesignated as section 2057.
(B) So much of such section 2057 (as so redesignated)
as precedes subsection (b) thereof is amended to read as follows:
‘‘SEC. 2057. FAMILY-OWNED BUSINESS INTERESTS.
‘‘(a) GENERAL RULE.—
‘‘(1) ALLOWANCE OF DEDUCTION.—For purposes of the tax
imposed by section 2001, in the case of an estate of a decedent
to which this section applies, the value of the taxable estate
shall be determined by deducting from the value of the gross
estate the adjusted value of the qualified family-owned business
interests of the decedent which are described in subsection
(b)(2).
‘‘(2) MAXIMUM DEDUCTION.—The deduction allowed by this
section shall not exceed $675,000.
‘‘(3) COORDINATION WITH UNIFIED CREDIT.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), if this section applies to an estate, the applicable
exclusion amount under section 2010 shall be $625,000.
‘‘(B) INCREASE IN UNIFIED CREDIT IF DEDUCTION IS LESS
THAN $675,000.—If the deduction allowed by this section
is less than $675,000, the amount of the applicable exclu-
sion amount under section 2010 shall be increased (but
not above the amount which would apply to the estate
without regard to this section) by the excess of $675,000
over the amount of the deduction allowed.’’.
(C) Subparagraph (A) of section 2057(b)(2) of the 1986
Code (as so redesignated) is amended by striking ‘‘(without
regard to this section)’’.
(D) Subsection (c) of section 2057 of the 1986 Code (as

so redesignated) is amended by striking ‘‘(determined without
regard to this section)’’.
(E) The table of sections for part III of subchapter A of
chapter 11 of the 1986 Code is amended by striking the item
relating to section 2033A.
(F) The table of sections for part IV of such subchapter
is amended by adding at the end the following new item:
‘‘Sec. 2057. Family-owned business interests.’’.
(2) Section 2057(b)(3) of the 1986 Code (as so redesignated)
‘‘(3) INCLUDIBLE GIFTS OF INTERESTS.—The amount of the
gifts of qualified family-owned business interests determined
under this paragraph is the sum of—
‘‘(A) the amount of such gifts from the decedent to
members of the decedent’s family taken into account under
section 2001(b)(1)(B), plus
‘‘(B) the amount of such gifts otherwise excluded under
section 2503(b),
to the extent such interests are continuously held by members
of such family (other than the decedent’s spouse) between the
date of the gift and the date of the decedent’s death.’’.
(3)(A) Section 2057(e)(2)(C) of the 1986 Code (as so redesig-
nated) is amended by striking ‘‘(as defined in section 543(a))’’
and inserting ‘‘(as defined in section 543(a) without regard
to paragraph (2)(B) thereof) if such trade or business were
a corporation’’.
(B) Clause (ii) of section 2057(e)(2)(D) of the 1986 Code
(as so redesignated) is amended by striking ‘‘income of which
is described in section 543(a) or’’ and inserting ‘‘personal holding
company income (as defined in subparagraph (C)) or income
described’’.
(C) Paragraph (2) of section 2057(e) of the 1986 Code (as
so redesignated) is amended by adding at the end the following
new flush sentence:
‘‘In the case of a lease of property on a net cash basis by
the decedent to a member of the decedent’s family, income
from such lease shall not be treated as personal holding com-
pany income for purposes of subparagraph (C), and such prop-
erty shall not be treated as an asset described in subparagraph
(D)(ii), if such income and property would not be so treated
if the lessor had engaged directly in the activities engaged
in by the lessee with respect to such property.’’.
(4) Paragraph (2) of section 2057(f ) of the 1986 Code (as
so redesignated) is amended—
(A) by striking ‘‘(as determined under rules similar
to the rules of section 2032A(c)(2)(B))’’; and
(B) by adding at the end the following new subpara-
graph:
‘‘(C) ADJUSTED TAX DIFFERENCE.—For purposes of
subparagraph (A)—
‘‘(i) IN GENERAL.—The adjusted tax difference
attributable to a qualified family-owned business
interest is the amount which bears the same ratio
to the adjusted tax difference with respect to the estate
(determined under clause (ii)) as the value of such
interest bears to the value of all qualified family-owned

business interests described in subsection (b)(2).
‘‘(ii) ADJUSTED TAX DIFFERENCE WITH RESPECT TO
THE ESTATE.—For purposes of clause (i), the term
‘adjusted tax difference with respect to the estate’
means the excess of what would have been the estate
tax liability but for the election under this section
over the estate tax liability. For purposes of this clause,
the term ‘estate tax liability’ means the tax imposed
by section 2001 reduced by the credits allowable
against such tax.’’.
(5)(A) Paragraph (1) of section 2057(e) of the 1986 Code
(as so redesignated) is amended by adding at the end the
following new flush sentence:
‘‘For purposes of the preceding sentence, a decedent shall be
treated as engaged in a trade or business if any member of
the decedent’s family is engaged in such trade or business.’’.
(B) Subsection (f ) of section 2057 of the 1986 Code (as
so redesignated) is amended by adding at the end the following
new paragraph:
‘‘(3) USE IN TRADE OR BUSINESS BY FAMILY MEMBERS.—
A qualified heir shall not be treated as disposing of an interest
described in subsection (e)(1)(A) by reason of ceasing to be
engaged in a trade or business so long as the property to
which such interest relates is used in a trade or business
by any member of such individual’s family.’’.
(6) Paragraph (1) of section 2057(g) of the 1986 Code (as
so redesignated) is amended by striking ‘‘or (M)’’.
(7) Paragraph (3) of section 2057(i) of the 1986 Code (as
so redesignated) is amended by redesignating subparagraphs
(L), (M), and (N) as subparagraphs (N), (O), and (P), respec-
tively, and by inserting after subparagraph (K) the following
new subparagraphs:
‘‘(L) Section 2032A(g) (relating to application to
interests in partnerships, corporations, and trusts).
‘‘(M) Subsections (h) and (i) of section 2032A.’’.
(c) AMENDMENTS RELATED TO SECTION 503 OF THE 1997 ACT.—
(1) Clause (iii) of section 6166(b)(7)(A) of the 1986 Code
‘‘(iii) for purposes of applying section 6601( j), the
2-percent portion (as defined in such section) shall
be treated as being zero.’’.
(2) Clause (iii) of section 6166(b)(8)(A) of the 1986 Code
‘‘(iii) 2-PERCENT INTEREST RATE NOT TO APPLY.—
For purposes of applying section 6601( j), the 2-percent
portion (as defined in such section) shall be treated
as being zero.’’.
(d) AMENDMENT RELATED TO SECTION 505 OF THE 1997 ACT.—
Paragraphs (1) and (2) of section 7479(a) of the 1986 Code are
each amended by striking ‘‘an estate,’’ and inserting ‘‘an estate
(or with respect to any property included therein),’’.
(e) AMENDMENTS RELATED TO SECTION 506 OF THE 1997 ACT.—
(1) Paragraph (1) of section 506(e) of the 1997 Act is 26 USC 2001
amended by striking ‘‘and (c)’’ and inserting ‘‘, (c), and (d)’’. note.
(2)(A) Paragraph (9) of section 6501(c) of the 1986 Code
is amended by striking the last sentence.
(B) Subsection (f ) of section 2001 of the 1986 Code is

‘‘(f ) VALUATION OF GIFTS.—
‘‘(1) IN GENERAL—If the time has expired under section
6501 within which a tax may be assessed under chapter 12
(or under corresponding provisions of prior laws) on—
‘‘(A) the transfer of property by gift made during a
preceding calendar period (as defined in section 2502(b));
or
‘‘(B) an increase in taxable gifts required under section
2701(d),
the value thereof shall, for purposes of computing the tax
under this chapter, be the value as finally determined for
purposes of chapter 12.
‘‘(2) FINAL DETERMINATION.—For purposes of paragraph (1),
a value shall be treated as finally determined for purposes
of chapter 12 if—
‘‘(A) the value is shown on a return under such chapter
and such value is not contested by the Secretary before
the expiration of the time referred to in paragraph (1)
with respect to such return;
‘‘(B) in a case not described in subparagraph (A), the
value is specified by the Secretary and such value is not
timely contested by the taxpayer; or
‘‘(C) the value is determined by a court or pursuant
to a settlement agreement with the Secretary.’’.
(B) Subsection (c) of section 2504 of the 1986 Code is
‘‘(c) VALUATION OF GIFTS.—If the time has expired under section
6501 within which a tax may be assessed under this chapter 12
(or under corresponding provisions of prior laws) on—
‘‘(1) the transfer of property by gift made during a preceding
calendar period (as defined in section 2502(b)); or
‘‘(2) an increase in taxable gifts required under section
2701(d),
the value thereof shall, for purposes of computing the tax under
this chapter, be the value as finally determined (within the meaning
of section 2001(f )(2)) for purposes of this chapter.’’.
(1) Paragraph (3) of section 1(g) of the 1986 Code is
amended by striking subparagraph (C) and by redesignating
subparagraph (D) as subparagraph (C).
(2) Section 641 of the 1986 Code is amended by striking
subsection (c) and by redesignating subsection (d) as subsection
(c).
amended by striking ‘‘section 641(d)’’ and inserting ‘‘section
641(c)’’.
(4) Subparagraph (A) of section 6103(e)(1) of the 1986 Code
is amended by striking clause (ii) and by redesignating clauses
(iii) and (iv) as clauses (ii) and (iii), respectively.
amended by redesignating paragraph (9) as paragraph (10)
and by inserting after paragraph (8) the following new para-
graph:
‘‘(9) TREATMENT OF EASEMENTS GRANTED AFTER DEATH.—

In any case in which the qualified conservation easement is
granted after the date of the decedent’s death and on or before
the due date (including extensions) for filing the return of
tax imposed by section 2001, the deduction under section
2055(f ) with respect to such easement shall be allowed to
the estate but only if no charitable deduction is allowed under
chapter 1 to any person with respect to the grant of such
easement.’’.
(2) The first sentence of paragraph (6) of section 2031(c)
of the 1986 Code is amended by striking all that follows ‘‘shall
be made’’ and inserting ‘‘on or before the due date (including
extensions) for filing the return of tax imposed by section
2001 and shall be made on such return.’’.
SEC. 6008. AMENDMENTS RELATED TO TITLE VII OF 1997 ACT.
(a) AMENDMENT RELATED TO SECTION 1400 OF 1986 CODE.—
Section 1400(b)(2)(B) of the 1986 Code is amended by inserting
‘‘as determined on the basis of the 1990 census’’ after ‘‘percent’’.
(b) AMENDMENT RELATED TO SECTION 1400A OF 1986 CODE.—
Subsection (a) of section 1400A of the 1986 Code is amended by
inserting before the period ‘‘and section 1394(b)(3)(B)(iii) shall be
applied without regard to the employee residency requirement’’.
(c) AMENDMENTS RELATED TO SECTION 1400B OF 1986 CODE.—
(1) Section 1400B(b) of the 1986 Code is amended by
inserting after paragraph (4) the following new paragraph:
‘‘(5) TREATMENT OF DC ZONE TERMINATION.—The termi-
nation of the designation of the DC Zone shall be disregarded
for purposes of determining whether any property is a DC
Zone asset.’’.
(2) Paragraph (6) of section 1400B(b) of the 1986 Code
is amended by striking ‘‘(4)(A)(ii)’’ and inserting ‘‘(4)(A)(i) or
(ii)’’.
(3) Section 1400B(c) of the 1986 Code is amended by
striking ‘‘entity which is an’’.
(4) Section 1400B(d)(2) of the 1986 Code is amended by
inserting ‘‘as determined on the basis of the 1990 census’’
after ‘‘percent’’.
(d) AMENDMENTS RELATED TO SECTION 1400C OF 1986 CODE.—
(1) Paragraph (1) of section 1400C(b) of the 1986 Code
is amended by inserting ‘‘and subsection (d)’’ after ‘‘this sub-
section’’.
(2) Paragraph (1) of section 1400C(c) of the 1986 Code
‘‘(1) IN GENERAL.—The term ‘first-time homebuyer’ means
any individual if such individual (and if married, such individ-
ual’s spouse) had no present ownership interest in a principal
residence in the District of Columbia during the 1-year period
ending on the date of the purchase of the principal residence
to which this section applies.’’.
(3) Subparagraph (B) of section 1400C(e)(2) of the 1986
Code is amended by inserting before the period ‘‘on the date
the taxpayer first occupies such residence’’.
(4) Paragraph (3) of section 1400C(e) of the 1986 Code
is amended by striking all that follows ‘‘principal residence’’
and inserting ‘‘on the date such residence is purchased.’’.
(5) Subsection (i) of section 1400C of the 1986 Code is

‘‘(i) APPLICATION OF SECTION.—This section shall apply to
property purchased after August 4, 1997, and before January 1,
2001.’’.
(6) Subsection (c) of section 23 of the 1986 Code is amended
by inserting ‘‘and section 1400C’’ after ‘‘other than this section’’.
(7) Subparagraph (C) of section 25(e)(1) of the 1986 Code
is amended by striking ‘‘section 23’’ and inserting ‘‘sections
23 and 1400C’’.
SEC. 6009. AMENDMENTS RELATED TO TITLE IX OF 1997 ACT.
(a) AMENDMENT RELATED TO SECTION 908 OF 1997 ACT.—
Paragraph (6) of section 5041(b) of the 1986 Code is amended
by inserting ‘‘which is a still wine’’ after ‘‘hard cider’’.
(1) IN GENERAL.—Subparagraph (C) of section 7704(g)(3)
of the 1986 Code is amended by striking the period at the
Applicability. end and inserting ‘‘and shall be paid by the partnership. Section
6655 shall be applied to such partnership with respect to such
tax in the same manner as if the partnership were a corpora-
tion, such tax were imposed by section 11, and references
in such section to taxable income were references to the gross
income referred to in subparagraph (A).’’.
Applicability. (2) EFFECTIVE DATE.—The second sentence of section
26 USC 7704 7704(g)(3)(C) of the 1986 Code (as added by paragraph (1))
note. shall apply to taxable years beginning after the date of the
enactment of this Act.
(c) AMENDMENT RELATED TO SECTION 971 OF 1997 ACT.—Clause
(ii) of section 280F(a)(1)(C) is amended by striking ‘‘subparagraph
(A)’’ and inserting ‘‘subparagraphs (A) and (B)’’.
(d) AMENDMENT RELATED TO SECTION 976 OF 1997 ACT.—Sec-
tion 6103(d)(5) of the 1986 Code is amended by striking ‘‘section
967 of the Taxpayer Relief Act of 1997.’’ and inserting ‘‘section
976 of the Taxpayer Relief Act of 1997. Subsections (a)(2) and
(p)(4) and sections 7213 and 7213A shall not apply with respect
to disclosures or inspections made pursuant to this paragraph.’’.
(e) AMENDMENT RELATED TO SECTION 977 OF 1997 ACT.—Para-
26 USC 172 note. graph (2) of section 977(e) of the 1997 Act is amended to read
as follows:
‘‘(2) NON-AMTRAK STATE.—The term ‘non-Amtrak State’
means any State which is not receiving intercity passenger
rail service from the Corporation as of the date of the enactment
of this Act.’’.
SEC. 6010. AMENDMENTS RELATED TO TITLE X OF 1997 ACT.
amended—
(A) by striking ‘‘debt’’ each place it appears in clauses
(i), (ii), and (iii) of subparagraph (A) and inserting ‘‘posi-
tion’’;
(B) by striking ‘‘and’’ at the end of subparagraph (A);
and
(C) by redesignating subparagraph (B) as subpara-
graph (C) and by inserting after subparagraph (A) the
following new subparagraph:
‘‘(B) any hedge with respect to a position described

in subparagraph (A), and’’.
(2) Section 1259(d)(1) of the 1986 Code is amended by
inserting ‘‘(including cash)’’ after ‘‘property’’.
(3) Subparagraph (D) of section 475(f )(1) of the 1986 Code
‘‘Subsection (d)(3) shall not apply under the preceding sentence
for purposes of applying sections 1402 and 7704.’’.
(4) Subparagraph (C) of section 1001(d)(3) of the 1997
Act is amended by striking ‘‘within the 30-day period beginning 26 USC 475 note.
on’’ and inserting ‘‘before the close of the 30th day after’’.
Paragraph (1) of section 1059(g) of the 1986 Code is amended
by striking ‘‘and in the case of stock held by pass-thru entities’’
and inserting ‘‘, in the case of stock held by pass-thru entities,
and in the case of consolidated groups’’.
(1) Paragraph (1) of section 1012(d) of the 1997 Act is 26 USC 351 note.
amended by striking ‘‘1997, pursuant’’ and inserting ‘‘1997;
except that the amendment made by subsection (a) shall apply
to such distributions only if pursuant’’.
(2) Subparagraph (A) of section 355(e)(3) of the 1986 Code
is amended—
(A) by striking ‘‘shall not be treated as described in’’
and inserting ‘‘shall not be taken into account in applying’’;
and
(B) by striking clause (iv) and inserting the following
new clause:
‘‘(iv) The acquisition of stock in the distributing
corporation or any controlled corporation to the extent
that the percentage of stock owned directly or indirectly
in such corporation by each person owning stock in
such corporation immediately before the acquisition
does not decrease.’’.
(3)(A) Subsection (c) of section 351 of the 1986 Code is
‘‘(c) SPECIAL RULES WHERE DISTRIBUTION TO SHAREHOLDERS.—
‘‘(1) IN GENERAL.—In determining control for purposes of
this section, the fact that any corporate transferor distributes
part or all of the stock in the corporation which it receives
in the exchange to its shareholders shall not be taken into
account.
‘‘(2) SPECIAL RULE FOR SECTION 355.—If the requirements
of section 355 (or so much of section 356 as relates to section
355) are met with respect to a distribution described in para-
graph (1), then, solely for purposes of determining the tax
treatment of the transfers of property to the controlled corpora-
tion by the distributing corporation, the fact that the sharehold-
ers of the distributing corporation dispose of part or all of
the distributed stock shall not be taken into account in deter-
mining control for purposes of this section.’’.
(B) Clause (ii) of section 368(a)(2)(H) of the 1986 Code
‘‘(ii) in the case of a transaction with respect to
which the requirements of section 355 (or so much
of section 356 as relates to section 355) are met, the
fact that the shareholders of the distributing corpora-

tion dispose of part or all of the distributed stock
shall not be taken into account.’’.
amended by striking subparagraph (B) and by redesignating
subparagraph (C) as subparagraph (B).
Regulations. ‘‘(6) AVOIDANCE OF MULTIPLE INCLUSIONS, ETC.—In the case
of any acquisition to which subsection (a) applies in which
the acquiring corporation or the issuing corporation is a foreign
corporation, the Secretary shall prescribe such regulations as
are appropriate in order to eliminate a multiple inclusion of
any item in income by reason of this subpart and to provide
appropriate basis adjustments (including modifications to the
application of sections 959 and 961).’’.
(1) Paragraph (1) of section 351(g) of the 1986 Code is
amended by adding ‘‘and’’ at the end of subparagraph (A) and
by striking subparagraphs (B) and (C) and inserting the follow-
ing new subparagraph:
‘‘(B) if (and only if) the transferor receives stock other
than nonqualified preferred stock—
‘‘(i) subsection (b) shall apply to such transferor;
and
‘‘(ii) such nonqualified preferred stock shall be
treated as other property for purposes of applying sub-
section (b).’’.
(2) Clause (ii) of section 354(a)(2)(C) of 1986 Code is
amended by adding at the end the following new subclause:
‘‘(III) EXTENSION OF STATUTE OF LIMITA-
TIONS.—The statutory period for the assessment
of any deficiency attributable to a corporation fail-
ing to be a family-owned corporation shall not
expire before the expiration of 3 years after the
date the Secretary is notified by the corporation
(in such manner as the Secretary may prescribe)
of such failure, and such deficiency may be
assessed before the expiration of such 3-year period
notwithstanding the provisions of any other law
or rule of law which would otherwise prevent such
assessment.’’.
(f ) AMENDMENT RELATED TO SECTION 1024 OF 1997 ACT.—
Section 6331(h)(1) of the 1986 Code is amended by striking ‘‘The
effect of a levy’’ and inserting ‘‘If the Secretary approves a levy
under this subsection, the effect of such levy’’.
(1) Subsection (l) of section 4041 of the 1986 Code is
amended by striking ‘‘subsection (e) or (f )’’ and inserting ‘‘sub-
section (f ) or (g)’’.
amended by moving the sentence added at the end of paragraph
(1) to the end of such subsection.
amended—
(A) by striking ‘‘(2)(A)’’ and inserting ‘‘(2)’’; and
(B) by adding at the end the following sentence:

‘‘Subsection (a) shall not apply to gasoline to which this
subsection applies.’’.
(h) AMENDMENTS RELATED TO SECTION 1032 OF 1997 ACT.—
(1) Section 1032(a) of the 1997 Act is amended by striking 26 USC 4083.
‘‘Subsection (a) of section 4083’’ and inserting ‘‘Paragraph (1)
of section 4083(a)’’.
(2) Section 1032(e)(12)(A) of the 1997 Act shall be applied 26 USC 7232.
as if ‘‘gasoline, diesel fuel,’’ were the material proposed to
be stricken.
‘‘(1) AVIATION-GRADE KEROSENE.—Subsection (a)(2) shall Regulations.
not apply to aviation-grade kerosene (as determined under regu-
lations prescribed by the Secretary) which the Secretary deter-
mines is destined for use as a fuel in an aircraft.’’.
amended by striking ‘‘a removal, entry, or sale of kerosene
to’’ and inserting ‘‘kerosene received by’’.
amended by striking ‘‘dyed diesel fuel and kerosene’’ and insert-
ing ‘‘such fuel in a dyed form’’.
(i) AMENDMENT RELATED TO SECTION 1034 OF 1997 ACT.—
Paragraph (3) of section 4251(d) of the 1986 Code is amended
by striking ‘‘other similar arrangement’’ and inserting ‘‘any other
similar arrangement’’.
( j) AMENDMENTS RELATED TO SECTION 1041 OF 1997 ACT.—
(1) Subparagraph (A) of section 512(b)(13) of the 1986
Code is amended by inserting ‘‘or accrues’’ after ‘‘receives’’.
(2) Subclause (I) of section 512(b)(13)(B)(i) of the 1986
Code is amended by striking ‘‘(as defined in section
513A(a)(5)(A))’’.
(3) Paragraph (2) of section 1041(b) of the 1997 Act is 26 USC 512 note.
‘‘(2) BINDING CONTRACTS.—The amendments made by this
section shall not apply to any amount received or accrued
during the first 2 taxable years beginning on or after the
date of the enactment of this Act if such amount is received
or accrued pursuant to a written binding contract in effect
on June 8, 1997, and at all times thereafter before such amount
is received or accrued. The preceding sentence shall not apply
to any amount which would (but for the exercise of an option
to accelerate payment of such amount) be received or accrued
after such 2 taxable years.’’.
(k) AMENDMENTS RELATED TO SECTION 1053 OF 1997 ACT.—
(1) Section 853 of the 1986 Code is amended by redesignat-
ing subsection (e) as subsection (f ) and by inserting after
subsection (d) the following new subsection:
‘‘(e) TREATMENT OF TAXES NOT ALLOWED AS A CREDIT UNDER
SECTION 901(k).—This section shall not apply to any tax with
respect to which the regulated investment company is not allowed
a credit under section 901 by reason of section 901(k).’’.
amended by striking the last sentence.
(3) Subparagraph (A) of section 901(k)(4) of the 1986 Code
is amended by striking ‘‘securities business’’ and inserting ‘‘busi-
ness as a securities dealer’’.
(l) AMENDMENT RELATED TO SECTION 1055 OF 1997 ACT.—

Section 6611(g)(1) of the 1986 Code is amended by striking ‘‘(e),
and (h)’’ and inserting ‘‘and (e)’’.
(m) AMENDMENT RELATED TO SECTION 1061 OF 1997 ACT.—
Subsection (c) of section 751 of the 1986 Code is amended by
striking ‘‘731’’ each place it appears and inserting ‘‘731, 732,’’.
(n) AMENDMENT RELATED TO SECTION 1083 OF 1997 ACT.—
26 USC 39. Section 1083(a)(2) of the 1997 Act is amended—
(2) by striking ‘‘22’’ and inserting ‘‘21’’.
(o) AMENDMENTS RELATED TO SECTION 1084 OF 1997 ACT.—
(1) Paragraph (3) of section 264(a) of the 1986 Code is
amended by striking ‘‘subsection (c)’’ and inserting ‘‘subsection
(d)’’.
amended by striking ‘‘subsection (d)’’ and inserting ‘‘subsection
(e)’’.
(3)(A) Paragraph (4) of section 264(f ) of the 1986 Code
is amended by adding at the end the following new subpara-
graph:
‘‘(E) MASTER CONTRACTS.—If coverage for each insured
under a master contract is treated as a separate contract
for purposes of sections 817(h), 7702, and 7702A, coverage
for each such insured shall be treated as a separate contract
for purposes of subparagraph (A). For purposes of the
preceding sentence, the term ‘master contract’ shall not
include any group life insurance contract (as defined in
section 848(e)(2)).’’.
(B) The second sentence of section 1084(d) of the 1997
26 USC 101 note. Act is amended by striking ‘‘but’’ and all that follows and
inserting ‘‘except that, in the case of a master contract (within
the meaning of section 264(f )(4)(E) of the Internal Revenue
Code of 1986), the addition of covered lives shall be treated
as a new contract only with respect to such additional covered
lives.’’.
(4)(A) Clause (iv) of section 264(f )(5)(A) of the 1986 Code
is amended by striking the second sentence.
(B) Subparagraph (B) of section 6724(d)(1) of the 1986
Code is amended by striking ‘‘or’’ at the end of clause (xv),
by striking the period at the end of clause (xvi) and inserting
‘‘; or’’, and by adding at the end the following new clause:
‘‘(xvii) section 264(f )(5)(A)(iv) (relating to reporting
with respect to certain life insurance and annuity con-
tracts).’’.
(C) Paragraph (2) of section 6724(d) of the 1986 Code
is amended by striking ‘‘or’’ at the end of subparagraph (Y),
by striking the period at the end of subparagraph (Z) and
inserting ‘‘or’’, and by adding at the end the following new
subparagraph:
‘‘(AA) section 264(f )(5)(A)(iv) (relating to reporting with
respect to certain life insurance and annuity contracts).’’.
(5) Subparagraph (A) of section 264(f )(8) of the 1986 Code
is amended by striking ‘‘subsection (d)(5)(B)’’ and inserting
‘‘subsection (e)(5)(B)’’.
(p) AMENDMENTS RELATED TO SECTION 1085 OF 1997 ACT.—
(1) Paragraph (5) of section 32(c) of the 1986 Code is
amended—
(A) by inserting before the period at the end of subpara-

graph (A) ‘‘and increased by the amounts described in
subparagraph (C)’’;
(B) by adding ‘‘or’’ at the end of clause (iii) of subpara-
graph (B); and
(C) by striking all that follows subclause (II) of
subparagraph (B)(iv) and inserting the following:
‘‘(III) other trades or businesses.
For purposes of clause (iv), there shall not be taken
into account items which are attributable to a trade
or business which consists of the performance of serv-
ices by the taxpayer as an employee.
‘‘(C) CERTAIN AMOUNTS INCLUDED.—An amount is
described in this subparagraph if it is—
‘‘(i) interest received or accrued during the taxable
year which is exempt from tax imposed by this chapter;
or
‘‘(ii) amounts received as a pension or annuity,
and any distributions or payments received from an
individual retirement plan, by the taxpayer during the
taxable year to the extent not included in gross income.
Clause (ii) shall not include any amount which is not
includible in gross income by reason of a trustee-to-trustee
transfer or a rollover distribution.’’.
(2) Clause (v) of section 32(c)(2)(B) of the 1986 Code is
amended by inserting ‘‘shall be taken into account’’ before ‘‘,
but only’’.
(3) The text of paragraph (3) of section 1085(a) of the
1997 Act is amended to read as follows: ‘‘Paragraph (2) of 26 USC 6213.
section 6213(g) (relating to the definition of mathematical or
clerical errors) is amended by striking ‘‘and’’ at the end of
subparagraph (I), by striking the period at the end of subpara-
graph (J) and inserting ‘‘, and’’, and by inserting after subpara-
graph (J) the following new subparagraph:
‘‘(K) an omission of information required by section
32(k)(2) (relating to taxpayers making improper prior
claims of earned income credit).’’.
(q) AMENDMENT RELATED TO SECTION 1088 OF 1997 ACT.—
Section 1088(b)(2)(C) of the 1997 Act is amended by inserting ‘‘more 26 USC 453C
than 1 year’’ before ‘‘after’’. note.
(r) AMENDMENT RELATED TO SECTION 1089 OF 1997 ACT.—
Paragraphs (1)(C) and (2)(C) of section 664(d) of the 1986 Code
are each amended by adding ‘‘, and’’ at the end.
SEC. 6011. AMENDMENTS RELATED TO TITLE XI OF 1997 ACT.
Paragraph (3) of section 59(a) added by section 1103 of the 1997
Act is redesignated as paragraph (4).
(1) Subsection (e) of section 1297 of the 1986 Code is
‘‘(4) TREATMENT OF HOLDERS OF OPTIONS.—Paragraph (1)
shall not apply to stock treated as owned by a person by
reason of section 1298(a)(4) (relating to the treatment of a
person that has an option to acquire stock as owning such
stock) unless such person establishes that such stock is owned
(within the meaning of section 958(a)) by a United States
shareholder (as defined in section 951(b)) who is not exempt

from tax under this chapter.’’.
(2) Section 1298(a)(2)(B) of the 1986 Code is amended by
adding at the end the following new sentence: ‘‘Section 1297(e)
shall not apply in determining whether a corporation is a
passive foreign investment company for purposes of this
subparagraph.’’.
(1) Section 672(f )(3)(B) of the 1986 Code is amended by
striking ‘‘section 1296’’ and inserting ‘‘section 1297’’.
amended by adding at the end the following new sentence:
‘‘In the case of stock which is marked to market under section
475 or any other provision of this chapter, this section shall
not apply, except that rules similar to the rules of section
1296( j) shall apply.’’.
(3) Subsection (d) of section 1296 of the 1986 Code is
‘‘In the case of a regulated investment company which elected
to mark to market the stock held by such company as of
the last day of the taxable year preceding such company’s
first taxable year for which such company elects the application
of this section, the amount referred to in paragraph (1) shall
include amounts included in gross income under such mark
to market with respect to such stock for prior taxable years.’’.
(d) AMENDMENT RELATED TO SECTION 1123 OF 1997 ACT.—
Subsection (e) of section 1297 of the 1986 Code added by section
1123 of the 1997 Act is redesignated as subsection (f ).
‘‘except for the tax imposed by chapter 5’’.
‘‘chapters 1 and 5’’ each place it appears in paragraphs (1)(A)
and (5) of subsection (g) and in subsection (h)(1) and inserting
‘‘chapter 1’’.
amended by striking ‘‘by regulations’’.
amended by striking ‘‘such information’’ and all that follows
through the period and inserting ‘‘the Secretary has prescribed
the furnishing of such information on or before the first day
of such annual accounting period.’’.
amended by striking ‘‘corporation’’ and inserting ‘‘foreign busi-
ness entity’’ each place it appears.
(g) AMENDMENT RELATED TO SECTION 1144 OF 1997 ACT.—
26 USC 6038B. Paragraphs (1) and (2) of section 1144(c) of the 1997 Act are
each amended by striking ‘‘6038B(b)’’ and inserting ‘‘6038B(c) (as
redesignated by subsection (b))’’.
SEC. 6012. AMENDMENTS RELATED TO TITLE XII OF 1997 ACT.
The last sentence of section 162(a) of the 1986 Code is amended
by striking ‘‘investigate’’ and all that follows and inserting ‘‘inves-
tigate or prosecute, or provide support services for the investigation
or prosecution of, a Federal crime.’’.

(1) Section 6311(e)(1) of the 1986 Code is amended by
striking ‘‘section 6103(k)(8)’’ and inserting ‘‘section 6103(k)(9)’’.
(2) Paragraph (8) of section 6103(k) of the 1986 Code (as
added by section 1205(c)(1) of the 1997 Act) is redesignated
as paragraph (9).
(3) Subsection (g) of section 7431 of the 1986 Code added
by section 1205 of the 1997 Act is redesignated as subsection
(h) and is amended by striking ‘‘(8)’’ in the heading and insert-
ing ‘‘(9)’’.
(4) Section 1205(c)(3) of the 1997 Act shall be applied 26 USC 6103.
as if it read as follows:
‘‘(3) Section 6103(p)(3)(A), as amended by section
1026(b)(1)(A) of the 1997 Act, is amended by striking ‘‘or (8)’’
and inserting ‘‘(8), or (9)’’.
(5) Section 1213(b) of the 1997 Act is amended by striking 26 USC 6724.
‘‘section 6724(d)(1)(A)’’ and inserting ‘‘section 6724(d)(1)’’.
(c) AMENDMENT RELATED TO SECTION 1221 OF 1997 ACT.—
Paragraph (2) of section 774(d) of the 1986 Code is amended by
inserting before the period ‘‘or 857(b)(3)(D)’’.
Subsection (c) of section 6724 of the 1986 Code is amended by
inserting before the period ‘‘(more than 100 information returns
in the case of a partnership having more than 100 partners)’’.
(e) AMENDMENT RELATED TO SECTION 1226 OF 1997 ACT.—
Section 1226 of the 1997 Act is amended by striking ‘‘ending on 26 USC 6011
or’’ and inserting ‘‘beginning’’. note.
Subsection (c) of section 6211 of the 1986 Code is amended—
(1) by striking ‘‘SUBCHAPTER C’’ in the heading and insert-
ing ‘‘SUBCHAPTERS C AND D’’; and
(2) by striking ‘‘subchapter C’’ in the text and inserting
‘‘subchapters C and D’’.
(g) AMENDMENT RELATED TO SECTION 1256 OF 1997 ACT.—
Subparagraph (A) of section 857(d)(3) of the 1986 Code is amended
by striking ‘‘earliest accumulated earnings and profits (other than
earnings and profits to which subsection (a)(2)(A) applies)’’ and
inserting ‘‘earliest earnings and profits accumulated in any taxable
year to which the provisions of this part did not apply’’.
(h) AMENDMENT RELATED TO SECTION 1285 OF 1997 ACT.—
Section 7430(b) of the 1986 Code is amended by redesignating
paragraph (5) as paragraph (4).
SEC. 6013. AMENDMENTS RELATED TO TITLE XIII OF 1997 ACT.
(1) Section 646 of the 1986 Code is redesignated as section
645.
(2) The item relating to section 646 in the table of sections
for subpart A of part I of subchapter J of chapter 1 of the
1986 Code is amended by striking ‘‘Sec. 646’’ and inserting
‘‘Sec. 645’’.
amended by striking ‘‘section 646’’ and inserting ‘‘section 645’’.
(4)(A) Paragraph (1) of section 2652(b) of the 1986 Code
is amended by striking the second sentence.
(B) Subsection (b) of section 2654 of the 1986 Code is
‘‘For purposes of this subsection, a trust shall be treated as

part of an estate during any period that the trust is so treated
under section 645.’’.
amended by adding at the end the following new flush sentence:
‘‘A trust shall not fail to be treated as meeting the requirement
of paragraph (6) by reason of the death of an individual but only
during the 60-day period beginning on the date of such death.’’.
(2) Subsection (f ) of section 685 of the 1986 Code is
amended by inserting before the period at the end ‘‘and of
trusts terminated during the year’’.
SEC. 6014. AMENDMENTS RELATED TO TITLE XIV OF 1997 ACT.
amended—
(A) by inserting ‘‘, or imported into the United States
and transferred to a brewery free of tax under section
5418,’’ after ‘‘produced in the United States’’ in the text;
and
(B) by inserting ‘‘; CERTAIN IMPORTED BEER’’ after ‘‘PRO-
DUCED IN THE UNITED STATES’’ in the heading.
amended by inserting ‘‘and not transferred to a brewery free
of tax under section 5418’’ after ‘‘United States’’.
‘‘produced in the United States’’ each place it appears and
inserting ‘‘removed for consumption or sale’’.
amended by inserting ‘‘which are not transferred to a bonded
wine cellar free of tax under section 5364’’ after ‘‘foreign wines’’.
(2) Subsection (a) of section 5044 of the 1986 Code is
amended by striking ‘‘produced in the United States’’ and
inserting ‘‘removed from a bonded wine cellar’’.
‘‘Wine imported or brought into’’ and inserting ‘‘Natural wine
(as defined in section 5381) imported or brought into’’.
(c) AMENDMENT RELATED TO SECTION 1434 OF 1997 ACT.—
Paragraph (2) of section 4052(f ) of the 1986 Code is amended
by striking ‘‘this section’’ and inserting ‘‘such section’’.
Paragraph (2) of section 4091(a) of the 1986 Code is amended
by inserting ‘‘or on which tax has been credited or refunded’’ after
‘‘such paragraph’’.
Subparagraph (D) of section 7430(c)(4) of the 1986 Code is amended
by striking ‘‘subparagraph (A)(iii)’’ and inserting ‘‘subparagraph
(A)(ii)’’.
SEC. 6015. AMENDMENTS RELATED TO TITLE XV OF 1997 ACT.
Paragraph (8) of section 408(p) of the 1986 Code added by section
1501(b) of the 1997 Act is redesignated as paragraph (9).
26 USC 401 note. Section 1505(d)(2) of the 1997 Act is amended by striking ‘‘(b)(12)’’
and inserting ‘‘(b)(12)(A)(i)’’.

(1) Section 1529(a) of the 1997 Act is amended to read 26 USC 1529.
as follows:
‘‘(a) GENERAL RULE.—Amounts to which this section applies
which are received by an individual (or the survivors of the individ-
ual) as a result of hypertension or heart disease of the individual
shall be excludable from gross income under section 104(a)(1) of
the Internal Revenue Code of 1986.’’.
(2) Section 1529(b)(1)(B) of the 1997 Act is amended to
read as follows:
‘‘(B) under—
‘‘(i) a State law (as amended on May 19, 1992)
which irrebuttably presumed that heart disease and
hypertension are work-related illnesses but only for
employees hired before July 1, 1992; or
‘‘(ii) any other statute, ordinance, labor agreement,
or similar provision as a disability pension payment
or in the nature of a disability pension payment attrib-
utable to employment as a police officer or fireman,
but only if the individual is referred to in the State
law described in clause (i); and’’.
Subparagraph (C) of section 404(a)(9) of the 1986 Code (as added
by section 1530 of the 1997 Act) is redesignated as subparagraph
(D) and is amended by striking ‘‘A qualified’’ and inserting ‘‘QUALI-
FIED GRATUITOUS TRANSFERS.—A qualified’’.
Subsection (f ) of section 9811 of the 1986 Code (as added by section
1531 of the 1997 Act) is redesignated as subsection (e).
SEC. 6016. AMENDMENTS RELATED TO TITLE XVI OF 1997 ACT.
(a) AMENDMENTS RELATED TO SECTION 1601(d) OF 1997 ACT.—
(1) AMENDMENTS RELATED TO SECTION 1601(d)(1)—
(A) Section 408(p)(2)(D)(i) of the 1986 Code is amended
by striking ‘‘or (B)’’ in the last sentence.
(B) Section 408(p) of the 1986 Code is amended by
‘‘(10) SPECIAL RULES FOR ACQUISITIONS, DISPOSITIONS, AND
SIMILAR TRANSACTIONS.—
‘‘(A) IN GENERAL.—An employer which fails to meet
any applicable requirement by reason of an acquisition,
disposition, or similar transaction shall not be treated as
failing to meet such requirement during the transition
period if—
‘‘(i) the employer satisfies requirements similar to
the requirements of section 410(b)(6)(C)(i)(II); and
‘‘(ii) the qualified salary reduction arrangement
maintained by the employer would satisfy the require-
ments of this subsection after the transaction if the
employer which maintained the arrangement before
the transaction had remained a separate employer.
‘‘(B) APPLICABLE REQUIREMENT.—For purposes of this
paragraph, the term ‘applicable requirement’ means—
‘‘(i) the requirement under paragraph (2)(A)(i) that
an employer be an eligible employer;
‘‘(ii) the requirement under paragraph (2)(D) that
an arrangement be the only plan of an employer; and
‘‘(iii) the participation requirements under para-

graph (4).
‘‘(C) TRANSITION PERIOD.—For purposes of this para-
graph, the term ‘transition period’ means the period begin-
ning on the date of any transaction described in subpara-
graph (A) and ending on the last day of the second calendar
year following the calendar year in which such transaction
occurs.’’.
(C) Section 408(p)(2) of the 1986 Code is amended—
(i) by striking ‘‘the preceding sentence shall apply
only in accordance with rules similar to the rules of
section 410(b)(6)(C)(i)’’ in the last sentence of subpara-
graph (C)(i)(II) and inserting ‘‘the preceding sentence
shall not apply’’; and
(ii) by striking clause (iii) of subparagraph (D).
(2) AMENDMENT TO SECTION 1601 (d)(4).—Section
26 USC 403 note. 1601(d)(4)(A) of the 1997 Act is amended—
(A) by striking ‘‘Section 403(b)(11)’’ and inserting
‘‘Paragraphs (7)(A)(ii) and (11) of section 403(b)’’; and
(B) by striking ‘‘403(b)(1)’’ in clause (ii) and inserting
‘‘403(b)(10)’’.
(b) AMENDMENT RELATED TO SECTION 1601(f )(4) OF 1997 ACT.—
Subsection (d) of section 6427 of the 1986 Code is amended—
(1) by striking ‘‘HELICOPTERS’’ in the heading and inserting
‘‘OTHER AIRCRAFT USES’’; and
(2) by inserting ‘‘or a fixed-wing aircraft’’ after ‘‘helicopter’’.
SEC. 6017. AMENDMENT RELATED TO TRANSPORTATION EQUITY ACT
FOR THE 21ST CENTURY.
(a) IN GENERAL.—Subparagraph (B) of section 6427(i)(2) of
the 1986 Code is amended to read as follows:
‘‘(B) TIME FOR FILING CLAIM.—No claim filed under
this paragraph shall be allowed unless filed during the
first quarter following the last quarter included in the
claim.’’.
26 USC 6427 (b) EFFECTIVE DATE.—The amendment made by subsection (a)
note. shall take effect as if included in the amendments made by section
9009 of the Transportation Equity Act for the 21st Century.
SEC. 6018. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTEC-
TION ACT OF 1996.
(a) AMENDMENT RELATED TO SECTION 1116.—Subparagraph (C)
of section 1116(b)(2) of the Small Business Job Protection Act of
110 Stat. 1764. 1996 is amended by striking ‘‘chapter 68’’ and inserting ‘‘chapter
61’’.
(b) AMENDMENT RELATED TO SECTION 1421.—Section 408(d)(7)
of the 1986 Code is amended—
(1) by inserting ‘‘or 402(k)’’ after ‘‘section 402(h)’’ in
subparagraph (B) thereof; and
(2) by inserting ‘‘OR SIMPLE RETIREMENT ACCOUNTS’’ after
‘‘PENSIONS’’ in the heading thereof.
(c) AMENDMENT RELATED TO SECTION 1431.—Subparagraph (E)
of section 1431(c)(1) of the Small Business Job Protection Act of
26 USC 414. 1996 is amended to read as follows:
‘‘(E) Section 414(q)(5), as redesignated by subparagraph
(A), is amended by striking ‘under paragraph (4) or the number
of officers taken into account under paragraph (5)’ ’’.
(d) AMENDMENT RELATED TO SECTION 1604.—Paragraph (3)

of section 1604(b) of such Act is amended— 26 USC 167 note.
(1) by striking ‘‘such Code’’ and inserting ‘‘the Internal
Revenue Code of 1986’’; and
(2) by striking ‘‘such date of enactment’’ and inserting
‘‘the date of the enactment of this Act’’.
(e) AMENDMENT RELATED TO SECTION 1609.—Paragraph (1)
of section 1609(h) of such Act is amended by striking ‘‘paragraph 26 USC 4091
(3)(A)(i)’’ and inserting ‘‘paragraph (3)(A)’’. note.
(f ) AMENDMENTS RELATED TO SECTION 1807.—
(1) Subparagraph (A) of section 23(b)(2) of the 1986 Code
(relating to income limitation on credit for adoption expenses)
is amended by inserting ‘‘(determined without regard to sub-
section (c))’’ after ‘‘for any taxable year’’.
(2) Paragraph (3) of section 1807(c) of the Small Business
Job Protection Act of 1996 is amended by striking ‘‘Clause 26 USC 219.
(i)’’ and inserting ‘‘Clause (ii)’’.
(g) AMENDMENT RELATED TO SECTION 1903.—Subsection (b) 26 USC 679.
of section 1903 of such Act shall be applied as if ‘‘or’’ in the
material proposed to be stricken were capitalized.
(h) EFFECTIVE DATE.—The amendments made by this section 26 USC 23 note.
shall take effect as if included in the provisions of the Small
Business Job Protection Act of 1996 to which they relate.
SEC. 6019. AMENDMENTS RELATED TO TAXPAYER BILL OF RIGHTS 2.
(a) IN GENERAL.—Subsection (b) of section 6104 of the 1986
Code is amended by adding at the end the following new sentence:
‘‘In the case of an organization described in section 501(d), this
subsection shall not apply to copies referred to in section 6031(b)
with respect to such organization.’’.
(b) PUBLIC INSPECTION.—Subparagraph (C) of section 6104(e)(1)
of the 1986 Code is amended by adding at the end the following
new sentence: ‘‘In the case of an organization described in section
501(d), subparagraph (A) shall not require the disclosure of the
copies referred to in section 6031(b) with respect to such organiza-
tion.’’.
(c) DISCLOSURE TO AUTHORIZED REPRESENTATIVES OF THE
TAXPAYER.—Paragraph (6) of section 6103(e) of the 1986 Code is
amended by striking ‘‘or (5)’’ and inserting ‘‘(5), (8), or (9)’’.
SEC. 6020. AMENDMENT RELATED TO OMNIBUS BUDGET RECONCILI-
ATION ACT OF 1993.
(a) IN GENERAL.—Section 196(c) of the 1986 Code is amended
by striking ‘‘and’’ at the end of paragraph (6), by striking the
period at the end of paragraph (7), and insert ‘‘, and’’, and by
‘‘(8) the employer Social Security credit determined under
section 45B(a).’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 196 note.
shall take effect as if included in the amendments made by section
13443 of the Revenue Reconciliation Act of 1993.
SEC. 6021. AMENDMENT RELATED TO REVENUE RECONCILIATION ACT
OF 1990.
(a) IDENTIFICATION REQUIREMENT FOR INDIVIDUALS ELIGIBLE
FOR EARNED INCOME CREDIT.—Subparagraph (F) of section 32(c)(1)
of the 1986 Code is amended by striking ‘‘The term ‘eligible individ-

ual’ does not include any individual who does not include on the
return of tax for the taxable year—’’ and inserting ‘‘No credit
shall be allowed under this section to an eligible individual who
does not include on the return of tax for the taxable year—’’.
(b) IDENTIFICATION REQUIREMENT FOR QUALIFYING CHILDREN
UNDER EARNED INCOME CREDIT.—
(1) IN GENERAL.—Clause (i) of section 32(c)(3)(D) of the
1986 Code is amended to read as follows:
‘‘(i) IN GENERAL.—A qualifying child shall not be
taken into account under subsection (b) unless the
taxpayer includes the name, age, and TIN of the
qualifying child on the return of tax for the taxable
year.’’.
(2) INDIVIDUALS WHO DO NOT INCLUDE TIN, ETC., OF ANY
QUALIFYING CHILD.—Paragraph (1) of section 32(c) of the 1986
Code is amended by adding at the end the following new
subparagraph:
‘‘(G) INDIVIDUALS WHO DO NOT INCLUDE TIN, ETC., OF
ANY QUALIFYING CHILD.—No credit shall be allowed under
this section to any eligible individual who has one or more
qualifying children if no qualifying child of such individual
is taken into account under subsection (b) by reason of
paragraph (3)(D).’’.
(3) CONFORMING AMENDMENT.—Subparagraph (A) of section
32(c)(3) is amended by inserting ‘‘and’’ at the end of clause
(ii), by striking ‘‘, and’’ at the end of clause (iii) and inserting
a period, and by striking clause (iv).
26 USC 32 note. (c) EFFECTIVE DATES.—
(1) ELIGIBLE INDIVIDUALS.—The amendment made by sub-
section (a) shall take effect as if included in the amendments
made by section 451 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
(2) QUALIFYING CHILDREN.—The amendments made by sub-
section (b) shall take effect as if included in the amendments
made by section 11111 of Revenue Reconciliation Act of 1990.
SEC. 6022. AMENDMENT RELATED TO TAX REFORM ACT OF 1986.
(a) IN GENERAL.—Section 6401(b)(1) of the 1986 Code is
amended by striking ‘‘and D’’ and inserting ‘‘D, and G’’.
26 USC 6401 (b) EFFECTIVE DATE.—The amendment made by subsection (a)
note. shall take effect as if included in the amendments made by section
701(b) of the Tax Reform Act of 1986.
SEC. 6023. MISCELLANEOUS CLERICAL AND DEADWOOD CHANGES.
(1) The heading for subparagraph (B) of section 45A(b)(1)
of the 1986 Code is amended by striking ‘‘TARGETED JOBS
CREDIT’’ and inserting ‘‘WORK OPPORTUNITY CREDIT’’.
(2) The subsection heading for section 59(b) of the 1986
Code is amended by striking ‘‘SECTION 936 CREDIT’’ and insert-
ing ‘‘CREDITS UNDER SECTION 30A OR 936’’.
(3) Subsection (n) of section 72 of the 1986 Code is amended
by inserting ‘‘(as in effect on the day before the date of the
enactment of the Small Business Job Protection Act of 1996)’’
after ‘‘section 101(b)(2)(D)’’.
(4) Subparagraph (A) of section 72(t)(3) of the 1986 Code
is amended by striking ‘‘(A)(v),’’ and inserting ‘‘(A)(v)’’.
(5) Clause (ii) of section 142(f )(3)(A) of the 1986 Code

is amended by striking ‘‘1997, (’’ and inserting ‘‘1997 (’’.
(6) The last sentence of paragraph (3) of section 501(n)
of the 1986 Code is amended by striking ‘‘subparagraph (C)(ii)’’
and inserting ‘‘subparagraph (E)(ii)’’.
(7) Subsection (o) of section 501 of the 1986 Code is
amended by striking ‘‘section 1853(e)’’ and inserting ‘‘section
1855(d)’’.
(8) The heading for subclause (II) of section 512(b)(17)(B)(ii)
of the 1986 Code is amended by striking ‘‘RULE’’ and inserting
‘‘RULE’’.
(9) Clause (ii) of section 543(d)(5)(A) of the 1986 Code
is amended by striking ‘‘section 563(c)’’ and inserting ‘‘section
563(d)’’.
(10) Subparagraph (B) of section 871(f )(2) of the 1986 Code
is amended by striking ‘‘(19 U.S.C. 2462)’’ and inserting ‘‘19
U.S.C. 2461 et seq.)’’.
(11) Paragraph (2) of section 1017(a) of the 1986 Code
is amended by striking ‘‘(b)(2)(D)’’ and inserting ‘‘(b)(2)(E)’’.
(12) Subparagraph (D) of section 1250(d)(4) of the 1986
Code is amended by striking ‘‘the last sentence of section
1033(b)’’ and inserting ‘‘section 1033(b)(2)’’.
is amended—
(A) by striking the semicolon at the end of subpara-
graph (F) and inserting a comma;
(B) by striking ‘‘or’’ at the end of subparagraph (G);
and
(C) by striking the period at the end of subparagraph
(I) and inserting a semicolon.
is amended by inserting ‘‘for’’ before ‘‘any benefit provided to’’.
is amended by inserting ‘‘for’’ before ‘‘any payment made’’.
(16) Sections 4092(b) and 6427(q)(2) of the 1986 Code are
each amended by striking ‘‘section 4041(c)(4)’’ and inserting
‘‘section 4041(c)(2)’’.
(17) Sections 4221(c) and 4222(d) of the 1986 Code are
each amended by striking ‘‘4053(a)(6)’’ and inserting ‘‘4053(6)’’.
(18)(A) The heading of section 4973 of the 1986 Code is
‘‘SEC. 4973. TAX ON EXCESS CONTRIBUTIONS TO CERTAIN TAX-
FAVORED ACCOUNTS AND ANNUITIES.’’.
(B) The item relating to section 4973 in the table of sections
for chapter 43 of the 1986 Code is amended to read as follows:
‘‘Sec. 4973. Tax on excess contributions to certain tax-favored accounts and
annuities.’’.
(19) Section 4975 of the 1986 Code is amended—
(A) in subsection (c)(3) by striking ‘‘exempt for the
tax’’ and inserting ‘‘exempt from the tax’’; and
(B) in subsection (i) by striking ‘‘Secretary of Treasury’’
and inserting ‘‘Secretary of the Treasury’’.
is amended by inserting ‘‘to any person’’ after ‘‘transfers’’.
(21) Subparagraph (A) of section 6050R(b)(2) of the 1986

Code is amended by striking the semicolon at the end thereof
and inserting a comma.
(22) Subparagraph (A) of section 6103(h)(4) of the 1986
Code is amended by inserting ‘‘if ’’ before ‘‘the taxpayer is a
party to’’.
(23) Paragraph (5) of section 6416(b) of the 1986 Code
is amended by striking ‘‘section 4216(e)(1)’’ each place it appears
and inserting ‘‘section 4216(d)(1)’’.
(24)(A) Section 6421 of the 1986 Code is amended by
redesignating subsections ( j) and (k) as subsections (i) and
( j), respectively.
(B) Subsection (b) of section 34 of the 1986 Code is amended
by striking ‘‘section 6421( j)’’ and inserting ‘‘section 6421(i)’’.
(C) Subsections (a) and (b) of section 6421 of the 1986
Code are each amended by striking ‘‘subsection ( j)’’ and insert-
ing ‘‘subsection (i)’’.
(25) Paragraph (3) of section 6427(f ) of the 1986 Code
is amended by striking ‘‘, (e),’’.
(26)(A) Section 6427 of the 1986 Code, as amended by
paragraph (16), is amended by redesignating subsections (n),
(p), (q), and (r) as subsections (m), (n), (o), and (p), respectively.
(B) Paragraphs (1) and (2)(A) of section 6427(i) of the
1986 Code are each amended by striking ‘‘(q)’’ and inserting
‘‘(o)’’.
(27) Subsection (m) of section 6501 of the 1986 Code is
amended by striking ‘‘election under’’ and all that follows
through ‘‘(or any’’ and inserting ‘‘election under section 30(d)(4),
40(f ), 43, 45B, 45C(d)(4), or 51( j) (or any’’.
(28) The paragraph heading of paragraph (2) of section
7702B(e) of the 1986 Code is amended by inserting ‘‘SECTION’’
after ‘‘APPLICATION OF’’.
(29) Paragraph (3) of section 7434(b) of the 1986 Code
is amended by striking ‘‘attorneys fees’’ and inserting ‘‘attor-
neys’ fees’’.
(30) Subparagraph (B) of section 7872(f )(2) of the 1986
Code is amended by striking ‘‘foregone’’ and inserting ‘‘forgone’’.
(31) Subsection (e) of section 9502 of the 1986 Code is
‘‘(e) CERTAIN TAXES ON ALCOHOL MIXTURES TO REMAIN IN
GENERAL FUND.—For purposes of this section, the amounts which
would (but for this subsection) be required to be appropriated
under subparagraphs (A), (C), and (D) of subsection (b)(1) shall
be reduced by—
‘‘(1) 0.6 cent per gallon in the case of taxes imposed on
any mixture at least 10 percent of which is alcohol (as defined
in section 4081(c)(3)) if any portion of such alcohol is ethanol;
and
‘‘(2) 0.67 cent per gallon in the case of fuel used in produc-
ing a mixture described in paragraph (1).’’.
Effective date. (32) The amendments made by this section shall take effect
26 USC 34 note. on the date of the enactment of this Act.
26 USC 1 note. SEC. 6024. EFFECTIVE DATE.
Except as otherwise provided in this title, the amendments
made by this title shall take effect as if included in the provisions
of the Taxpayer Relief Act of 1997 to which they relate.
TITLE VII—REVENUE PROVISIONS

SEC. 7001. CLARIFICATION OF DEDUCTION FOR DEFERRED COM-
PENSATION.
(a) IN GENERAL.—Section 404(a) (relating to deduction for con-
tributions of an employer to an employee’s trust or annuity plan
and compensation under a deferred-payment plan) is amended by
‘‘(11) DETERMINATIONS RELATING TO DEFERRED COMPENSA-
TION.—For purposes of determining under this section—
‘‘(A) whether compensation of an employee is deferred
compensation; and
‘‘(B) when deferred compensation is paid,
no amount shall be treated as received by the employee, or
paid, until it is actually received by the employee.’’.
(b) EFFECTIVE DATE.— 26 USC 404 note.
(1) IN GENERAL.—The amendment made by subsection (a) Applicability.
shall apply to taxable years ending after the date of the enact-
ment of this Act.
(2) CHANGE IN METHOD OF ACCOUNTING.—In the case of
any taxpayer required by the amendment made by subsection
(a) to change its method of accounting for its first taxable
year ending after the date of the enactment of this Act—
(A) such change shall be treated as initiated by the
taxpayer,
(B) such change shall be treated as made with the
consent of the Secretary of the Treasury; and
(C) the net amount of the adjustments required to
be taken into account by the taxpayer under section 481
of the Internal Revenue Code of 1986 shall be taken into
account ratably over the 3-taxable year period beginning
with such first taxable year.
SEC. 7002. TERMINATION OF EXCEPTION FOR CERTAIN REAL ESTATE 26 USC 269B
INVESTMENT TRUSTS FROM THE TREATMENT OF note.
STAPLED ENTITIES.
(a) IN GENERAL.—Notwithstanding paragraph (3) of section Applicability.
136(c) of the Tax Reform Act of 1984 (relating to stapled stock;
stapled entities), the REIT gross income provisions shall be applied
by treating the activities and gross income of members of the
stapled REIT group properly allocable to any nonqualified real
property interest held by the exempt REIT or any stapled entity
which is a member of such group (or treated under subsection
(c) as held by such REIT or stapled entity) as the activities and
gross income of the exempt REIT in the same manner as if the
exempt REIT and such group were one entity.
(b) NONQUALIFIED REAL PROPERTY INTEREST.—For purposes
of this section—
(1) IN GENERAL.—The term ‘‘nonqualified real property
interest’’ means, with respect to any exempt REIT, any interest
in real property acquired after March 26, 1998, by the exempt
REIT or any stapled entity.
(2) EXCEPTION FOR BINDING CONTRACTS, ETC.—Such term
shall not include any interest in real property acquired after
March 26, 1998, by the exempt REIT or any stapled entity
if—
(A) the acquisition is pursuant to a written agreement

(including a put option, buy-sell agreement, and an agree-
ment relating to a third party default) which was binding
on such date and at all times thereafter on such REIT
or stapled entity; or
(B) the acquisition is described on or before such date
in a public announcement or in a filing with the Securities
and Exchange Commission.
(3) IMPROVEMENTS AND LEASES.—
(A) IN GENERAL.—Except as otherwise provided in this
paragraph, the term ‘‘nonqualified real property interest’’
shall not include—
(i) any improvement to land owned or leased by
the exempt REIT or any member of the stapled REIT
group; and
(ii) any repair to, or improvement of, any improve-
ment owned or leased by the exempt REIT or any
member of the stapled REIT group,
if such ownership or leasehold interest is a qualified real
property interest.
(B) LEASES.—The term ‘‘nonqualified real property
interest’’ shall not include—
(i) any lease of a qualified real property interest
if such lease is not otherwise such an interest; or
(ii) any renewal of a lease which is a qualified
real property interest,
but only if the rent on any lease referred to in clause
(i) or any renewal referred to in clause (ii) does not exceed
an arm’s length rate.
(C) TERMINATION WHERE CHANGE IN USE.—
(i) IN GENERAL.—Subparagraph (A) shall not apply
to any improvement placed in service after December
31, 1999, which is part of a change in the use of
the property to which such improvement relates unless
the cost of such improvement does not exceed 200
percent of—
(I) the cost of such property; or
(II) if such property is substituted basis prop-
erty (as defined in section 7701(a)(42) of the
Internal Revenue Code of 1986), the fair market
value of the property at the time of acquisition.
(ii) BINDING CONTRACTS.—For purposes of clause
(i), an improvement shall be treated as placed in serv-
ice before January 1, 2000, if such improvement is
placed in service before January 1, 2004, pursuant
to a binding contract in effect on December 31, 1999,
and at all times thereafter.
(4) EXCEPTION FOR PERMITTED TRANSFERS, ETC.—The term
‘‘nonqualified real property interest’’ shall not include any
interest in real property acquired solely as a result of a direct
or indirect contribution, distribution, or other transfer of such
interest from the exempt REIT or any member of the stapled
REIT group to such REIT or any such member, but only to
the extent the aggregate of the interests of the exempt REIT
and all stapled entities in such interest in real property (deter-
mined in accordance with subsection (c)(1)) is not increased
by reason of the transfer.
(5) TREATMENT OF ENTITIES WHICH ARE NOT STAPLED, ETC.

ON MARCH 26, 1998.—Notwithstanding any other provision of
this section, all interests in real property held by an exempt
REIT or any stapled entity with respect to such REIT (or
treated under subsection (c) as held by such REIT or stapled
entity) shall be treated as nonqualified real property interests
unless—
(A) such stapled entity was a stapled entity with
respect to such REIT as of March 26, 1998, and at all
times thereafter; and
(B) as of March 26, 1998, and at all times thereafter,
such REIT was a real estate investment trust.
(6) QUALIFIED REAL PROPERTY INTEREST.—The term ‘‘quali-
fied real property interest’’ means any interest in real property
other than a nonqualified real property interest.
(c) TREATMENT OF PROPERTY HELD BY 10-PERCENT SUB-
SIDIARIES.—For purposes of this section—
(1) IN GENERAL.—Any exempt REIT and any stapled entity
shall be treated as holding their proportionate shares of each
interest in real property held by any 10-percent subsidiary
entity of the exempt REIT or stapled entity, as the case may
be.
(2) PROPERTY HELD BY 10-PERCENT SUBSIDIARIES TREATED
AS NONQUALIFIED.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), any interest in real property held by a 10-percent
subsidiary entity of an exempt REIT or stapled entity
shall be treated as a nonqualified real property interest.
(B) EXCEPTION FOR INTERESTS IN REAL PROPERTY HELD
ON MARCH 26, 1998, ETC.—In the case of an entity which
was a 10-percent subsidiary entity of an exempt REIT
or stapled entity on March 26, 1998, and at all times
thereafter, an interest in real property held by such subsidi-
ary entity shall be treated as a qualified real property
interest if such interest would be so treated if held or
acquired directly by the exempt REIT or the stapled entity.
(3) REDUCTION IN QUALIFIED REAL PROPERTY INTERESTS IF
INCREASE IN OWNERSHIP OF SUBSIDIARY.—If, after March 26,
1998, an exempt REIT or stapled entity increases its ownership
interest in a subsidiary entity to which paragraph (2)(B) applies
above its ownership interest in such subsidiary entity as of
such date, the additional portion of each interest in real prop-
erty which is treated as held by the exempt REIT or stapled
entity by reason of such increased ownership shall be treated
as a nonqualified real property interest.
(4) SPECIAL RULES FOR DETERMINING OWNERSHIP.—For
purposes of this subsection—
(A) percentage ownership of an entity shall be
determined in accordance with subsection (e)(4);
(B) interests in the entity which are acquired by an
exempt REIT or a member of the stapled REIT group
in any acquisition described in an agreement, announce-
ment, or filing described in subsection (b)(2) shall be treated
as acquired on March 26, 1998; and
(C) except as provided in guidance prescribed by the
Secretary, any change in proportionate ownership which
is attributable solely to fluctuations in the relative fair
market values of different classes of stock shall not be

taken into account.
(5) TREATMENT OF 60-PERCENT PARTNERSHIPS.—
(A) IN GENERAL.—If, as of March 26, 1998—
(i) an exempt REIT or stapled entity held directly
or indirectly at least 60 percent of the capital or profits
interest in a partnership; and
(ii) 90 percent or more of the capital interests
and 90 percent or more of the profits interests in
such partnership (other than interests held directly
or indirectly by the exempt REIT or stapled entity)
are, or will be, redeemable or exchangeable for consid-
eration the amount of which is determined by reference
to the value of shares of stock in the exempt REIT
or stapled entity (or both),
paragraph (3) shall not apply to such partnership, and
such REIT or entity shall be treated for all purposes of
this section as holding all of the capital and profits interests
in such partnership.
(B) LIMITATION TO ONE PARTNERSHIP.—If, as of January
1, 1999, more than one partnership owned by any exempt
REIT or stapled entity meets the requirements of subpara-
graph (A), only the largest such partnership on such date
(determined by aggregate asset bases) shall be treated
as meeting such requirements.
(C) MIRROR ENTITY.—For purposes of subparagraph
(A), an interest in a partnership formed after March 26,
1998, shall be treated as held by an exempt REIT or
stapled entity on March 26, 1998, if such partnership is
formed to mirror the stapling of an exempt REIT and
a stapled entity in connection with an acquisition agreed
to or announced on or before March 26, 1998.
(d) TREATMENT OF PROPERTY SECURED BY MORTGAGE HELD
BY EXEMPT REIT OR MEMBER OF STAPLED REIT GROUP.—
(1) IN GENERAL.—In the case of any nonqualified obligation
held by an exempt REIT or any member of the stapled REIT
group, the REIT gross income provisions shall be applied by
treating the exempt REIT as having impermissible tenant
service income equal to—
(A) the interest income from such obligation which
is properly allocable to the property described in paragraph
(2); and
(B) the income of any member of the stapled REIT
group from services described in paragraph (2) with respect
to such property.
If the income referred to in subparagraph (A) or (B) is of
a 10-percent subsidiary entity, only the portion of such income
which is properly allocable to the exempt REIT’s or the stapled
entity’s interest in the subsidiary entity shall be taken into
account.
(2) NONQUALIFIED OBLIGATION.—Except as otherwise pro-
vided in this subsection, the term ‘‘nonqualified obligation’’
means any obligation secured by a mortgage on an interest
in real property if the income of any member of the stapled
REIT group for services furnished with respect to such property
would be impermissible tenant service income were such prop-

erty held by the exempt REIT and such services furnished
by the exempt REIT.
(3) EXCEPTION FOR CERTAIN MARKET RATE OBLIGATIONS.—
Such term shall not include any obligation—
(A) payments under which would be treated as interest
if received by a REIT; and
(B) the rate of interest on which does not exceed an
arm’s length rate.
(4) EXCEPTION FOR EXISTING OBLIGATIONS.—Such term shall
not include any obligation—
(A) which is secured on March 26, 1998, by an interest
in real property; and
(B) which is held on such date by the exempt REIT
or any entity which is a member of the stapled REIT
group on such date and at all times thereafter,
but only so long as such obligation is secured by such interest,
and the interest payable on such obligation is not changed
to a rate which exceeds an arm’s length rate unless such
change is pursuant to the terms of the obligation in effect
on March 26, 1998. The preceding sentence shall not cease
to apply by reason of the refinancing of the obligation if (imme-
diately after the refinancing) the principal amount of the obliga-
tion resulting from the refinancing does not exceed the principal
amount of the refinanced obligation (immediately before the
refinancing) and the interest payable on such refinanced obliga-
tion does not exceed an arm’s length rate.
(5) TREATMENT OF ENTITIES WHICH ARE NOT STAPLED, ETC. Applicability.
ON MARCH 26, 1998.—A rule similar to the rule of subsection
(b)(5) shall apply for purposes of this subsection.
(6) INCREASE IN AMOUNT OF NONQUALIFIED OBLIGATIONS Applicability.
IF INCREASE IN OWNERSHIP OF SUBSIDIARY.—A rule similar to
the rule of subsection (c)(3) shall apply for purposes of this
subsection.
(7) COORDINATION WITH SUBSECTION (a).—This subsection
shall not apply to the portion of any interest in real property
that the exempt REIT or stapled entity holds or is treated
as holding under this section without regard to this subsection.
(e) DEFINITIONS.—For purposes of this section—
(1) REIT GROSS INCOME PROVISIONS.—The term ‘‘REIT
gross income provisions’’ means—
(A) paragraphs (2), (3), and (6) of section 856(c) of
the Internal Revenue Code of 1986; and
(B) section 857(b)(5) of such Code.
(2) EXEMPT REIT.—The term ‘‘exempt REIT’’ means a real
estate investment trust to which section 269B of the Internal
Revenue Code of 1986 does not apply by reason of paragraph
(3) of section 136(c) of the Tax Reform Act of 1984.
(3) STAPLED REIT GROUP.—The term ‘‘stapled REIT group’’
means, with respect to an exempt REIT, the group consisting
of—
(A) all entities which are stapled entities with respect
to the exempt REIT; and
(B) all entities which are 10-percent subsidiary entities
of the exempt REIT or any such stapled entity.
(4) 10-PERCENT SUBSIDIARY ENTITY.—
(A) IN GENERAL.—The term ‘‘10-percent subsidiary

entity’’ means, with respect to any exempt REIT or stapled
entity, any entity in which the exempt REIT or stapled
entity (as the case may be) directly or indirectly holds
at least a 10-percent interest.
(B) EXCEPTION FOR CERTAIN C CORPORATION SUBSIDI-
ARIES OF REITS.—A corporation which would, but for this
subparagraph, be treated as a 10-percent subsidiary of
an exempt REIT shall not be so treated if such corporation
is taxable under section 11 of the Internal Revenue Code
of 1986.
(C) 10-PERCENT INTEREST.—The term ‘‘10-percent
interest’’ means—
(i) in the case of an interest in a corporation,
ownership of 10 percent (by vote or value) of the stock
in such corporation;
(ii) in the case of an interest in a partnership,
ownership of 10 percent of the capital or profits interest
in the partnership; and
(iii) in any other case, ownership of 10 percent
of the beneficial interests in the entity.
(5) OTHER DEFINITIONS.—Terms used in this section which
are used in section 269B or section 856 of such Code shall
have the respective meanings given such terms by such section.
(f ) GUIDANCE.—The Secretary may prescribe such guidance
as may be necessary or appropriate to carry out the purposes
of this section, including guidance to prevent the avoidance of
such purposes and to prevent the double counting of income.
Applicability. (g) EFFECTIVE DATE.—This section shall apply to taxable years
ending after March 26, 1998.
SEC. 7003. CERTAIN CUSTOMER RECEIVABLES INELIGIBLE FOR MARK
TO MARKET TREATMENT.
(a) CERTAIN RECEIVABLES NOT ELIGIBLE FOR MARK TO MAR-
KET.—Section 475(c) (relating to definitions) is amended by adding
at the end the following new paragraph:
‘‘(4) SPECIAL RULES FOR CERTAIN RECEIVABLES.—
‘‘(A) IN GENERAL.—Paragraph (2)(C) shall not include
any nonfinancial customer paper.
‘‘(B) NONFINANCIAL CUSTOMER PAPER.—For purposes
of subparagraph (A), the term ‘nonfinancial customer paper’
means any receivable which—
‘‘(i) is a note, bond, debenture, or other evidence
of indebtedness;
‘‘(ii) arises out of the sale of nonfinancial goods
or services by a person the principal activity of which
is the selling or providing of nonfinancial goods or
services; and
‘‘(iii) is held by such person (or a person who
bears a relationship to such person described in section
267(b) or 707(b)) at all times since issue.’’.
(b) REGULATIONS.—Section 475(g) is amended by striking ‘‘and’’
at the end of paragraph (1), by striking the period at the end
of paragraph (2) and inserting ‘‘, and’’, and by adding at the end
the following new paragraph:
‘‘(3) to prevent the use by taxpayers of subsection (c)(4)
to avoid the application of this section to a receivable that
is inventory in the hands of the taxpayer (or a person who

bears a relationship to the taxpayer described in sections 267(b)
of 707(b)).’’.
(c) EFFECTIVE DATE.— 26 USC 475 note.
(1) IN GENERAL.—The amendments made by this section Applicability.
shall apply to taxable years ending after the date of the enact-
ment of this Act.
(2) CHANGE IN METHOD OF ACCOUNTING.—In the case of
any taxpayer required by the amendments made by this section
to change its method of accounting for its first taxable year
ending after the date of the enactment of this Act—
(A) such change shall be treated as initiated by the
taxpayer;
(B) such change shall be treated as made with the
consent of the Secretary of the Treasury; and
(C) the net amount of the adjustments required to
be taken into account by the taxpayer under section 481
of the Internal Revenue Code of 1986 shall be taken into
account ratably over the 4-taxable-year period beginning
with such first taxable year.
SEC. 7004. MODIFICATION OF AGI LIMIT FOR CONVERSIONS TO ROTH
IRAs.
(a) IN GENERAL.—Section 408A(c)(3)(C)(i) (relating to limits
based on modified adjusted gross income) is amended to read as
follows:
‘‘(i) adjusted gross income shall be determined in
the same manner as under section 219(g)(3), except
that—
‘‘(I) any amount included in gross income
under subsection (d)(3) shall not be taken into
account; and
‘‘(II) any amount included in gross income by
reason of a required distribution under a provision
described in paragraph (5) shall not be taken into
account for purposes of subparagraph (B)(i).’’.
shall apply to taxable years beginning after December 31, 2004. 26 USC 408A
note.
TITLE VIII—IDENTIFICATION OF LIM-

ITED TAX BENEFITS SUBJECT TO
LINE ITEM VETO
SEC. 8001. IDENTIFICATION OF LIMITED TAX BENEFITS SUBJECT TO
LINE ITEM VETO.
Section 1021(a)(3) of the Congressional Budget and Impound-
ment Control Act of 1974 shall only apply to—
(1) section 3105 (relating to administrative appeal of
adverse IRS determination of tax-exempt status of bond issue);
and
(2) section 3445(c) (relating to State fish and wildlife
permits).
TEA 21 TITLE IX—TECHNICAL CORRECTIONS

Restoration Act.
Grants. TO TRANSPORTATION EQUITY ACT
Inter-
governmental FOR THE 21ST CENTURY
relations.
Loans.
23 USC 101 note. SEC. 9001. SHORT TITLE.
This title may be cited as the ‘‘TEA 21 Restoration Act’’.
SEC. 9002. AUTHORIZATION AND PROGRAM SUBTITLE.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 1101(a) of the
Ante, p. 111. Transportation Equity Act for the 21st Century is amended—
(1) in paragraph (13)—
(A) by striking ‘‘$1,025,695,000’’ and inserting
‘‘$1,029,583,500’’;
(B) by striking ‘‘$1,398,675,000’’ and inserting
‘‘$1,403,977,500’’;
(C) by striking ‘‘$1,678,410,000’’ the first place it
appears and inserting ‘‘$1,684,773,000’’;
(D) by striking ‘‘$1,678,410,000’’ the second place it
appears and inserting ‘‘$1,684,773,000’’;
(E) by striking ‘‘$1,771,655,000’’ the first place it
appears and inserting ‘‘$1,778,371,500’’; and
(F) by striking ‘‘$1,771,655,000’’ the second place it
appears and inserting ‘‘$1,778,371,500’’; and
(2) in paragraph (14)—
(A) by striking ‘‘1998’’ and inserting ‘‘1999’’; and
(B) by inserting before ‘‘$5,000,000’’ the following:
‘‘$10,000,000 for fiscal year 1998 and’’.
(b) OBLIGATION LIMITATIONS.—
Ante, p. 115. (1) GENERAL LIMITATION.—Section 1102(a) of such Act is
amended—
(A) in paragraph (2) by striking ‘‘$25,431,000,000’’ and
inserting ‘‘$25,511,000,000’’;
(B) in paragraph (3) by striking ‘‘$26,155,000,000’’ and
inserting ‘‘$26,245,000,000’’;
(C) in paragraph (4) by striking ‘‘$26,651,000,000’’ and
inserting ‘‘$26,761,000,000’’;
(D) in paragraph (5) by striking ‘‘$27,235,000,000’’ and
inserting ‘‘$27,355,000,000’’; and
(E) in paragraph (6) by striking ‘‘$27,681,000,000’’ and
inserting ‘‘$27,811,000,000’’.
(2) TRANSPORTATION RESEARCH PROGRAMS.—Section 1102(e)
of such Act is amended—
(A) by striking ‘‘3’’ and inserting ‘‘5’’;
(B) by striking ‘‘VI’’ and inserting ‘‘V’’; and
(C) by inserting before the period at the end the
following: ‘‘; except that obligation authority made available
for such programs under such limitations shall remain
available for a period of 3 fiscal years’’.
(3) REDISTRIBUTION OF CERTAIN AUTHORIZED FUNDS.—
Section 1102(f ) of such Act is amended by striking ‘‘(other
than the program under section 160 of title 23, United States
Code)’’.
Ante, p. 118. (c) APPORTIONMENTS.—Section 1103 of such Act is amended—
(1) in subsection (l) by adding at the end the following:
‘‘(5) Section 150 of such title, and the item relating to

such section in the analysis for chapter 1 of such title, are
repealed.’’;
(2) in subsection (n) by inserting ‘‘of title 23, United States
Code’’ after ‘‘206’’; and
(3) by adding at the end the following:
‘‘(o) TECHNICAL ADJUSTMENTS.—Section 104 of title 23, United
States Code, is amended—
‘‘(1) in subsection (a)(1) (as amended by subsection (a)
of this section) by striking ‘under section 103’;
‘‘(2) in subsection (b) (as amended by subsection (b) of
this section)—
‘‘(A) in paragraph (1)(A) by striking ‘1999 through 2003’
and inserting ‘1998 through 2002’; and
‘‘(B) in paragraph (4)(B)(i) by striking ‘on lanes on
Interstate System’ and all that follows through ‘in each
State’ and inserting ‘on Interstate System routes open to
traffic in each State’; and
‘‘(3) in subsection (e)(2) (as added by subsection (d)(6) of
this section) by striking ‘104, 144, or 157’ and inserting ‘104,
105, or 144’.’’.
(d) MINIMUM GUARANTEE.—Section 1104 of such Act is amended Ante, p. 127.
by adding at the end the following:
‘‘(c) TECHNICAL ADJUSTMENTS.—Section 105 of title 23, United
States Code (as amended by subsection (a) of this section), is
amended—
‘‘(1) in subsection (a) by adding at the end the following:
‘The minimum amount allocated to a State under this section
for a fiscal year shall be $1,000,000.’;
‘‘(2) in subsection (c)(1) by striking ‘50 percent of’;
‘‘(3) in subsection (c)(1)(A) by inserting ‘(other than metro-
politan planning, minimum guarantee, high priority projects,
Appalachian development highway system, and recreational
trails programs)’ after ‘subsection (a)’;
‘‘(4) in subsection (c)(1)(B) by striking ‘all States’ and
inserting ‘each State’;
‘‘(5) in subsection (c)(2)—
‘‘(A) by striking ‘apportion’ and inserting ‘administer’;
and
‘‘(B) by striking ‘apportioned’ and inserting ‘adminis-
tered’; and
‘‘(6) in subsection (f )—
‘‘(A) by inserting ‘percentage’ before ‘return’ each place
it appears;
‘‘(B) in paragraph (2) by striking ‘for the preceding
fiscal year was equal to or less than’ and inserting ‘in
the table in subsection (b) was equal to’; and
‘‘(C) in paragraph (3)—
‘‘(i) by inserting ‘proportionately’ before ‘adjust’;
‘‘(ii) by striking ‘set forth’; and
‘‘(iii) by striking ‘do not exceed’ and inserting ‘is
equal to’.’’.
(e) REVENUE ALIGNED BUDGET AUTHORITY.—Section 1105 of
such Act is amended by adding at the end the following: Ante, p. 130.
‘‘(c) TECHNICAL CORRECTIONS.—Section 110 of such title (as
amended by subsection (a)) is amended—
‘‘(1) by striking subsection (a) and inserting the following:
‘(a) IN GENERAL.—
‘(1) ALLOCATION.—On October 15 of fiscal year 2000 and
each fiscal year thereafter, the Secretary shall allocate for
such fiscal year an amount of funds equal to the amount
determined pursuant to section 251(b)(1)(B)(ii)(I)(cc) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C 901(b)(2)(B)(ii)(I)(cc)) if the amount determined pursuant
to such section for such fiscal year is greater than zero.
‘(2) REDUCTION.—If the amount determined pursuant to
section 251(b)(1)(B)(ii)(I)(cc) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C 901(b)(2)(B)(ii)(I)(cc))
for fiscal year 2000 or any fiscal year thereafter is less than
zero, the Secretary on October 1 of the succeeding fiscal year
shall reduce proportionately the amount of sums authorized
to be appropriated from the Highway Trust Fund (other than
the Mass Transit Account) to carry out each of the Federal-
aid highway and highway safety construction programs (other
than emergency relief) by an aggregate amount equal to the
amount determined pursuant to such section.’;
‘‘(2) in subsections (b)(2) and (b)(4) by striking ‘subsection
(a)’ and inserting ‘subsection (a)(1)’; and
‘‘(3) in subsection (c) by striking ‘Maintenance program,
the’ and inserting ‘and’.’’.
(f ) INTERSTATE MAINTENANCE PROGRAM.—Section 1107 of such
Ante, p. 137. Act is amended by adding at the end the following:
‘‘(d) TECHNICAL AMENDMENTS.—Section 119 of such title (as
amended by subsection (a)) is amended—
‘‘(1) in subsection (b)—
‘‘(A) by striking ‘104(b)(5)(B)’ and inserting ‘104(b)(4)’;
and
‘‘(B) by striking ‘104(b)(5)(A)’ each place it appears
and inserting ‘104(b)(5)(A) (as in effect on the date before
the date of enactment of the Transportation Equity Act
for the 21st Century)’; and
‘‘(2) in subsection (c) by striking ‘104(b)(5)(B)’ each place
it appears and inserting ‘104(b)(4)’.’’.
(g) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT
Ante, p. 142. PROGRAM.—Section 1110(d)(2) of such Act is amended—
(1) by striking ‘‘149(c)’’ and inserting ‘‘149(e)’’; and
(2) by striking ‘‘that reduce’’ and inserting ‘‘reduce’’.
(h) HIGHWAY USE TAX EVASION PROJECTS.—Section 1114 of
Ante, p. 152. such Act is amended by adding at the end the following:
‘‘(c) TECHNICAL ADJUSTMENTS.—Section 143 of title 23, United
States Code (as amended by subsection (a) of this section), is
amended—
‘‘(1) in subsection (c)(1) by striking ‘April 1’ and inserting
‘August 1’;
‘‘(2) in subsection (c)(3) by inserting ‘PRIORITY’ after
‘FUNDING’; and
‘‘(3) in subsection (c)(3) by inserting ‘and prior to funding
any other activity under this section,’ after ‘2003,’.’’.
(i) FEDERAL LANDS HIGHWAYS PROGRAM.—Section 1115 of the
Ante, p. 154. Transportation Equity Act for the 21st Century is amended by
adding at the end the following:
‘‘(f ) CONFORMING AMENDMENTS.—
‘‘(1) FEDERAL SHARE.—Subsections ( j) and (k) of section
120 of title 23, United States Code (as added by subsection
(a) of this section), are redesignated as subsections (k) and

(l), respectively.
‘‘(2) RESERVATION OF FUNDS.—Section 202(d)(4)(B) of such
title (as added by subsection (b)(4) of this section) is amended
by striking ‘to, apply sodium acetate/formate de-icer to,’ and
inserting ‘, sodium acetate/formate, or other environmentally
acceptable, minimally corrosive anti-icing and de-icing composi-
tions’.
‘‘(3) ELIMINATION OF DUPLICATIVE PROVISION.—Section
144(g) of such title is amended by striking paragraph (4).’’.
( j) WOODROW WILSON MEMORIAL BRIDGE CORRECTION.—Section
1116 of such Act is amended by adding at the end the following: Ante, p. 158.
‘‘(e) TECHNICAL CORRECTION.—Sections 404(5) and
407(c)(2)(C)(iii) of such Act (as amended by subsections (a)(2) and
(b)(2), respectively) are amended by striking ‘the record of decision’
each place it appears and inserting ‘a record of decision’.’’.
(k) TECHNICAL CORRECTION.—Section 1117 of such Act is Ante, p. 160.
amended in subsections (a) and (b) by striking ‘‘section 102’’ each
place it appears and inserting ‘‘section 1101(a)(6)’’.
SEC. 9003. RESTORATIONS TO GENERAL PROVISIONS SUBTITLE.
(a) IN GENERAL.—Subtitle B of title I of the Transportation
Equity Act for the 21st Century is amended by adding at the Ante, p. 164.
end the following:
‘‘SEC. 1224. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION.
‘‘(a) HISTORIC COVERED BRIDGE DEFINED.—In this section, the
term ‘historic covered bridge’ means a covered bridge that is listed
or eligible for listing on the National Register of Historic Places.
‘‘(b) HISTORIC COVERED BRIDGE PRESERVATION.—Subject to the
availability of appropriations under subsection (d), the Secretary
shall—
‘‘(1) collect and disseminate information concerning historic
covered bridges;
‘‘(2) foster educational programs relating to the history
and construction techniques of historic covered bridges;
‘‘(3) conduct research on the history of historic covered
bridges; and
‘‘(4) conduct research, and study techniques, on protecting
historic covered bridges from rot, fire, natural disasters, or
weight-related damage.
‘‘(c) DIRECT FEDERAL ASSISTANCE.—
‘‘(1) IN GENERAL.—Subject to the availability of appropria-
tions, the Secretary shall make a grant to a State that submits
an application to the Secretary that demonstrates a need for
assistance in carrying out 1 or more historic covered bridge
projects described in paragraph (2).
‘‘(2) TYPES OF PROJECT.—A grant under paragraph (1) may
be made for a project—
‘‘(A) to rehabilitate or repair a historic covered bridge;
and
‘‘(B) to preserve a historic covered bridge, including
through—
‘‘(i) installation of a fire protection system, includ-
ing a fireproofing or fire detection system and sprin-
klers;
‘‘(ii) installation of a system to prevent vandalism
and arson; or
‘‘(iii) relocation of a bridge to a preservation site.

‘‘(3) AUTHENTICITY.—A grant under paragraph (1) may be
made for a project only if—
‘‘(A) to the maximum extent practicable, the project—
‘‘(i) is carried out in the most historically appro-
priate manner; and
‘‘(ii) preserves the existing structure of the historic
covered bridge; and
‘‘(B) the project provides for the replacement of wooden
components with wooden components, unless the use of
wood is impracticable for safety reasons.
‘‘(4) FEDERAL SHARE.—The Federal share of the cost of
a project carried out with a grant under this subsection shall
be 80 percent.
‘‘(d) FUNDING.—There is authorized to be appropriated to carry
out this section $10,000,000 for each of fiscal years 1999 through
2003. Such funds shall remain available until expended.
District of ‘‘SEC. 1225. SUBSTITUTE PROJECT.
Columbia.
‘‘(a) APPROVAL OF PROJECT.—Notwithstanding any other provi-
sion of law, upon the request of the Mayor of the District of
Columbia, the Secretary may approve substitute highway and tran-
sit projects under section 103(e)(4) of title 23, United States Code
(as in effect on the day before the date of enactment of this Act),
in lieu of construction of the Barney Circle Freeway project in
the District of Columbia, as identified in the 1991 Interstate Cost
Estimate.
‘‘(b) ELIGIBILITY FOR FEDERAL ASSISTANCE.—Upon approval of
any substitute project or projects under subsection (a)—
‘‘(1) the cost of construction of the Barney Circle Freeway
Modification project shall not be eligible for funds authorized
under section 108(b) of the Federal-Aid Highway Act of 1956;
and
‘‘(2) substitute projects approved pursuant to this section
shall be funded from interstate construction funds apportioned
or allocated to the District of Columbia that are not expended
and not subject to lapse on the date of enactment of this
Act.
‘‘(c) FEDERAL SHARE.—The Federal share payable on account
of a project or activity approved under this section shall be 85
percent of the cost thereof; except that the exception set forth
in section 120(b)(2) of title 23, United States Code, shall apply.
‘‘(d) LIMITATION ON ELIGIBILITY.—Any substitute project
approved pursuant to subsection (a) (for which the Secretary finds
that sufficient Federal funds are available) must be under contract
for construction, or construction must have commenced, before the
last day of the 4-year period beginning on the date of enactment
of this Act. If the substitute project is not under contract for
construction, or construction has not commenced, by such last day,
the Secretary shall withdraw approval of the substitute project.
‘‘SEC. 1226. FISCAL, ADMINISTRATIVE, AND OTHER AMENDMENTS.
‘‘(a) ADVANCED CONSTRUCTION.—Section 115 of title 23, United
States Code, is amended—
‘‘(1) in subsection (b)—
‘‘(A) by moving the text of paragraph (1) (including
subparagraphs (A) and (B)) 2 ems to the left;
‘‘(B) by striking ‘PROJECTS’ and all that follows through

‘When a State’ and inserting ‘PROJECTS.—When a State’;
‘‘(C) by striking paragraphs (2) and (3);
‘‘(D) by striking ‘(A) prior’ and inserting ‘(1) prior’;
and
‘‘(E) by striking ‘(B) the project’ and inserting ‘(2) the
project’;
‘‘(2) by striking subsection (c); and
‘‘(3) by redesignating subsection (d) as subsection (c).
‘‘(b) AVAILABILITY OF FUNDS.—Section 118 of such title is
amended—
‘‘(1) in the subsection heading of subsection (b) by striking
‘; DISCRETIONARY PROJECTS’; and
‘‘(2) by striking subsection (e) and inserting the following:
‘(e) EFFECT OF RELEASE OF FUNDS.—Any Federal-aid highway
funds released by the final payment on a project, or by the modifica-
tion of the project agreement, shall be credited to the same program
funding category previously apportioned to the State and shall
be immediately available for expenditure.’.’’.
‘‘(c) ADVANCES TO STATES.—Section 124 of such title is
amended—
‘‘(1) by striking ‘(a)’ the first place it appears; and
‘‘(2) by striking subsection (b).
‘‘(d) DIVERSION.—Section 126 of such title, and the item relating
to such section in the analysis for chapter 1 of such title, are
repealed.’’.
(b) CONFORMING AMENDMENT.—The table of contents contained
in section 1(b) of such Act is amended by inserting after the item
relating to section 1222 the following:
‘‘Sec. 1223. Transportation assistance for Olympic cities.
‘‘Sec. 1224. National historic covered bridge preservation.
‘‘Sec. 1225. Substitute project.
‘‘Sec. 1226. Fiscal, administrative, and other amendments.’’.
(c) METROPOLITAN PLANNING TECHNICAL ADJUSTMENT.—Section
1203 of such Act is amended by adding at the end the following: Ante, p. 170.
‘‘(o) TECHNICAL ADJUSTMENT.—Section 134(h)(5)(A) of title 23,
United States Code (as amended by subsection (h) of this section),
is amended by striking ‘for implementation’.’’.
(d) AMENDMENTS TO PRIOR SURFACE TRANSPORTATION LAWS.—
Section 1211 of such Act is amended— Ante, p. 188.
(1) in subsection (i)(3)(E) by striking ‘‘subparagraph (D)’’
and inserting ‘‘subparagraph (C)’’;
(2) in subsection (i) by adding at the end the following:
‘‘(4) TECHNICAL AMENDMENTS.—Section 1105(e)(5)(B)(i) of
such Act (as amended by paragraph (3) of this subsection)
is amended—
‘‘(A) by striking ‘subsection (c)(18)(B)(i)’ and inserting
‘subsection (c)(18)(D)(i)’;
‘‘(B) by striking ‘subsection (c)(18)(B)(ii)’ and inserting
‘subsection (c)(18)(D)(ii)’; and
‘‘(C) by adding at the end the following: ‘The portion
of the route referred to in subsection (c)(36) is designated
as Interstate Route I–86.’.’’;
(3) by striking subsection ( j);
(4) in subsection (k)—
(A) by striking ‘‘along’’ in paragraph (1) and inserting
‘‘from’’; and
(B) by adding at the end the following:

‘‘(4) TEXAS STATE HIGHWAY 99.—Texas State Highway 99
(also known as ‘Grand Parkway’) shall be considered as one
option in the I–69 route studies performed by the Texas Depart-
ment of Transportation for the designation of I–69 Bypass
in Houston, Texas.’’; and
(5) by redesignating subsections (g) through (i) and (k)
through (n) as subsections (f ) through (h) and (i) through
(l), respectively.
Ante, p. 193. (e) MISCELLANEOUS.—Section 1212 of such Act is amended—
(1) in the second sentence of subsection (q)(1) by striking
‘‘advance curriculum’’ and inserting ‘‘advanced curriculum’’;
(2) in subsection (r)—
(A) by redesignating paragraph (2) as paragraph (3);
and
(B) by inserting after paragraph (1) the following:
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated from the Highway Trust Fund
(other than the Mass Transit Account) to carry out paragraph
(1) $2,000,000 for fiscal year 1999 and $2,500,000 for fiscal
year 2000.’’;
(3) in subsection (s)—
and
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated from the Highway Trust Fund (other
than the Mass Transit Account) to carry out paragraph (1)
$23,000,000 for fiscal year 1999.’’;
(4) in subsection (u)—
(A) by inserting ‘‘the Secretary shall approve, and’’
before ‘‘the Commonwealth’’;
(B) by inserting a comma after ‘‘with’’; and
(C) by inserting ‘‘(as redefined by this Act)’’ after ‘‘80’’;
and
(5) by redesignating subsections (k) through (z) as sub-
sections (e) through (t), respectively.
(f ) PUERTO RICO HIGHWAY PROGRAM.—Section 1214(r) of the
Ante, p. 204. Transportation Equity Act for the 21st Century is amended by
‘‘(3) TREATMENT OF FUNDS.—Amounts made available to
carry out this subsection for a fiscal year shall be administered
as follows:
‘‘(A) For purposes of this subsection, such amounts
shall be treated as being apportioned to Puerto Rico under
sections 104(b), 144, and 206 of title 23, United States
Code, for each program funded under such sections in
an amount determined by multiplying—
‘‘(i) the aggregate of such amounts for the fiscal
year; by
‘‘(ii) the ratio that—
‘‘(I) the amount of funds apportioned to Puerto
Rico for each such program for fiscal year 1997;
bears to
‘‘(II) the total amount of funds apportioned
to Puerto Rico for all such programs for fiscal
year 1997.
‘‘(B) The amounts treated as being apportioned to

Puerto Rico under each section referred to in subparagraph
(A) shall be deemed to be required to be apportioned to
Puerto Rico under such section for purposes of the imposi-
tion of any penalty provisions in titles 23 and 49, United
States Code.
‘‘(C) Subject to subparagraph (B), nothing in this sub-
section shall be construed as affecting any allocation under
section 105 of title 23, United States Code, and any appor-
tionment under sections 104 and 144 of such title.’’.
(g) DESIGNATED TRANSPORTATION ENHANCEMENT ACTIVITIES.—
Section 1215 of such Act— Ante, p. 209.
(1) is amended in each of subsections (d), (e), (f ),
and (g)—
and
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated from the Highway Trust Fund
(other than the Mass Transit Account) to carry out paragraph
(1) the amounts specified in such paragraph for the fiscal
years specified in such paragraph.’’; and
(2) in subsection (d)(1) by inserting ‘‘on Route 50’’ after
‘‘measures’’.
(h) ELIGIBILITY.—Section 1217 of such Act is amended— Ante, p. 214.
(1) in subsection (d) by striking ‘‘104(b)(4)’’ and inserting
‘‘104(b)(5)(A)’’;
(2) in subsection (i) by striking ‘‘120(l)(1)’’ and inserting
‘‘120( j)(1)’’; and
(3) in subsection ( j) by adding at the end the following:
‘‘$3,000,000 of the amounts made available for item 164 of
the table contained in section 1602 shall be made available
on October 1, 1998, to the Pennsylvania Turnpike Commission
to carry out this subsection.’’.
(i) MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY
DEPLOYMENT PROGRAM.—Section 1218 of such Act is amended by Ante, p. 216.
‘‘(c) TECHNICAL AMENDMENTS.—Section 322 of title 23, United
States Code (as added by subsection (a) of this section), is
amended—
‘‘(1) in subsection (a)(3) by striking ‘or under 50 miles
per hour’;
‘‘(2) in subsection (d)—
‘‘(A) in paragraph (1) by striking ‘or low-speed’; and
‘‘(B) in paragraph (2)—
‘‘(i) in subparagraph (A) by striking ‘(h)(1)(A)’ and
inserting ‘(h)(1)’; and
‘‘(ii) in subparagraph (B) by striking ‘(h)(4)’ and
inserting ‘(h)(3)’;
‘‘(3) in subsection (h)(1)(B)(i) by inserting ‘(other than
subsection (i))’ after ‘this section’; and
‘‘(4) by adding at the end the following:
‘(i) LOW-SPEED PROJECT.—
‘(1) IN GENERAL.—Notwithstanding any other provision of
this section, of the funds made available by subsection (h)(1)(A)
to carry out this section, $5,000,000 shall be made available
to the Secretary to make grants for the research and develop-

ment of low-speed superconductivity magnetic levitation tech-
nology for public transportation purposes in urban areas to
demonstrate energy efficiency, congestion mitigation, and safety
benefits.
‘(2) NONCONTRACT AUTHORITY AUTHORIZATION OF APPRO-
PRIATIONS.—
‘(A) IN GENERAL.—There are authorized to be appro-
priated from the Highway Trust Fund (other than the
Mass Transit Account) to carry out this subsection such
sums as are necessary for each of fiscal years 2000 through
2003.
‘(B) AVAILABILITY.—Notwithstanding section 118(a),
funds made available under subparagraph (A)—
‘(i) shall not be available in advance of an annual
appropriation; and
‘(ii) shall remain available until expended.’.’’.
( j) TRANSPORTATION ASSISTANCE FOR OLYMPIC CITIES.—Section
Ante, p. 224. 1223(f ) of such Act is amended by inserting before the period
at the end the following: ‘‘or Special Olympics International’’.
SEC. 9004. RESTORATIONS TO PROGRAM STREAMLINING AND FLEXI-
BILITY SUBTITLE.
(a) IN GENERAL.—Subtitle C of title I of the Transportation
Ante, p. 225. Equity Act for the 21st Century is amended by adding at the
end the following:
‘‘SEC. 1311. DISCRETIONARY GRANT SELECTION CRITERIA AND
PROCESS.
‘‘(a) ESTABLISHMENT OF CRITERIA.—The Secretary shall estab-
lish criteria for all discretionary programs funded from the Highway
Trust Fund (other than the Mass Transit Account). To the extent
practicable, such criteria shall conform to the Executive Order
No. 12893 (relating to infrastructure investment).
‘‘(b) SELECTION PROCESS.—
Publication. ‘‘(1) LIMITATION ON ACCEPTANCE OF APPLICATIONS.—Before
accepting applications for grants under any discretionary pro-
gram for which funds are authorized to be appropriated from
the Highway Trust Fund (other than the Mass Transit Account)
by this Act (including the amendments made by this Act),
the Secretary shall publish the criteria established under sub-
section (a). Such publication shall identify all statutory criteria
and any criteria established by regulation that will apply to
the program.
Records. ‘‘(2) EXPLANATION.—Not less often than quarterly, the Sec-
retary shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on Transpor-
tation and Infrastructure of the House of Representatives a
list of the projects selected under discretionary programs funded
from the Highway Trust Fund (other than the Mass Transit
Account) and an explanation of how the projects were selected
based on the criteria established under subsection (a).
Applicability. ‘‘(c) MINIMUM COVERED PROGRAMS.—At a minimum, the criteria
established under subsection (a) and the selection process estab-
lished by subsection (b) shall apply to the following programs:
‘‘(1) The intelligent transportation system deployment pro-
gram under title V.
‘‘(2) The national corridor planning and development

program.
‘‘(3) The coordinated border infrastructure and safety
program.
‘‘(4) The construction of ferry boats and ferry terminal
facilities.
‘‘(5) The national scenic byways program.
‘‘(6) The Interstate discretionary program.
‘‘(7) The discretionary bridge program.’’.
(b) CONFORMING AMENDMENTS.—The table of contents con-
tained in section 1(b) of such Act is amended— Ante, p. 107.
(1) by striking the following:
‘‘Sec. 1309. Major investment study integration.’’.
and inserting the following:
‘‘Sec. 1308. Major investment study integration.’’;
and
(2) by inserting after the item relating to section 1310
the following:
‘‘Sec. 1311. Discretionary grant selection criteria and process.’’.
(c) REVIEW PROCESS.—Section 1309 of the Transportation
Equity Act for the 21st Century is amended— Ante, p. 232.
(1) in subsection (a)(1) by inserting after ‘‘highway construc-
tion’’ the following: ‘‘and mass transit’’;
(2) in subsection (d) by inserting after ‘‘Code,’’ the following:
‘‘or chapter 53 of title 49, United States Code,’’; and
(3) in subsection (e)(1)—
(A) by inserting ‘‘or recipient’’ after ‘‘a State’’;
(B) by inserting after ‘‘provide funds’’ the following:
‘‘for a highway project’’; and
(C) by inserting after ‘‘Code,’’ the following: ‘‘or for
a mass transit project made available under chapter 53
of title 49, United States Code,’’.
SEC. 9005. RESTORATIONS TO SAFETY SUBTITLE.
(a) IN GENERAL.—Subtitle D of title I of the Transportation
end the following:
‘‘SEC. 1405. OPEN CONTAINER LAWS.
‘‘(a) ESTABLISHMENT.—Chapter 1 of title 23, United States Code,
is amended by inserting after section 153 the following:
‘§ 154. Open container requirements
‘(a) DEFINITIONS.—In this section, the following definitions
apply:
‘(1) ALCOHOLIC BEVERAGE.—The term ‘‘alcoholic beverage’’
has the meaning given the term in section 158(c).
‘(2) MOTOR VEHICLE.—The term ‘‘motor vehicle’’ means a
vehicle driven or drawn by mechanical power and manufactured
primarily for use on public highways, but does not include
a vehicle operated exclusively on a rail or rails.
‘(3) OPEN ALCOHOLIC BEVERAGE CONTAINER.—The term
‘‘open alcoholic beverage container’’ means any bottle, can, or
other receptacle—
‘(A) that contains any amount of alcoholic beverage;
and
‘(B)(i) that is open or has a broken seal; or

‘(ii) the contents of which are partially removed.
Regulation. ‘(4) PASSENGER AREA.—The term ‘‘passenger area’’ shall
have the meaning given the term by the Secretary by regula-
tion.
‘(b) OPEN CONTAINER LAWS.—
‘(1) IN GENERAL.—For the purposes of this section, each
State shall have in effect a law that prohibits the possession
of any open alcoholic beverage container, or the consumption
of any alcoholic beverage, in the passenger area of any motor
vehicle (including possession or consumption by the driver of
the vehicle) located on a public highway, or the right-of-way
of a public highway, in the State.
‘(2) MOTOR VEHICLES DESIGNED TO TRANSPORT MANY PAS-
SENGERS.—For the purposes of this section, if a State has
in effect a law that makes unlawful the possession of any
open alcoholic beverage container by the driver (but not by
a passenger)—
‘(A) in the passenger area of a motor vehicle designed,
maintained, or used primarily for the transportation of
persons for compensation; or
‘(B) in the living quarters of a house coach or house
trailer,
the State shall be deemed to have in effect a law described
in this subsection with respect to such a motor vehicle for
each fiscal year during which the law is in effect.
‘(c) TRANSFER OF FUNDS.—
Effective dates. ‘(1) FISCAL YEARS 2001 AND 2002.—On October 1, 2000, and
October 1, 2001, if a State has not enacted or is not enforcing
an open container law described in subsection (b), the Secretary
shall transfer an amount equal to 11⁄2 percent of the funds
apportioned to the State on that date under each of paragraphs
(1), (3), and (4) of section 104(b) to the apportionment of the
State under section 402—
‘(A) to be used for alcohol-impaired driving counter-
measures; or
‘(B) to be directed to State and local law enforcement
agencies for enforcement of laws prohibiting driving while
intoxicated or driving under the influence and other related
laws (including regulations), including the purchase of
equipment, the training of officers, and the use of additional
personnel for specific alcohol-impaired driving counter-
measures, dedicated to enforcement of the laws (including
regulations).
Effective date. ‘(2) FISCAL YEAR 2003 AND FISCAL YEARS THEREAFTER.—
On October 1, 2002, and each October 1 thereafter, if a State
has not enacted or is not enforcing an open container law
described in subsection (b), the Secretary shall transfer an
amount equal to 3 percent of the funds apportioned to the
State on that date under each of paragraphs (1), (3), and
(4) of section 104(b) to the apportionment of the State under
section 402 to be used or directed as described in subparagraph
(A) or (B) of paragraph (1).
‘(3) USE FOR HAZARD ELIMINATION PROGRAM.—A State may
elect to use all or a portion of the funds transferred under
paragraph (1) or (2) for activities eligible under section 152.
‘(4) FEDERAL SHARE.—The Federal share of the cost of

a project carried out with funds transferred under paragraph
(1) or (2), or used under paragraph (3), shall be 100 percent.
‘(5) DERIVATION OF AMOUNT TO BE TRANSFERRED.—The
amount to be transferred under paragraph (1) or (2) may be
derived from one or more of the following:
‘(A) The apportionment of the State under section
104(b)(1).
‘(B) The apportionment of the State under section
104(b)(3).
‘(C) The apportionment of the State under section
104(b)(4).
‘(6) TRANSFER OF OBLIGATION AUTHORITY.—
‘(A) IN GENERAL.—If the Secretary transfers under this
subsection any funds to the apportionment of a State under
section 402 for a fiscal year, the Secretary shall transfer
an amount, determined under subparagraph (B), of obliga-
tion authority distributed for the fiscal year to the State
for Federal-aid highways and highway safety construction
programs for carrying out projects under section 402.
‘(B) AMOUNT.—The amount of obligation authority
referred to in subparagraph (A) shall be determined by
multiplying—
‘(i) the amount of funds transferred under subpara-
graph (A) to the apportionment of the State under
section 402 for the fiscal year, by
‘(ii) the ratio that—
‘(I) the amount of obligation authority
distributed for the fiscal year to the State for Fed-
eral-aid highways and highway safety construction
programs, bears to
‘(II) the total of the sums apportioned to the
State for Federal-aid highways and highway safety
construction programs (excluding sums not subject
to any obligation limitation) for the fiscal year.
‘(7) LIMITATION ON APPLICABILITY OF OBLIGATION
LIMITATION.—Notwithstanding any other provision of law, no
limitation on the total of obligations for highway safety pro-
grams under section 402 shall apply to funds transferred under
this subsection to the apportionment of a State under such
section.’.
‘‘(b) CONFORMING AMENDMENT.—The analysis for chapter 1 of
such title is amended by inserting after the item relating to section
153 the following:
‘154. Open container requirements.’.
‘‘SEC. 1406. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIV-

ING WHILE INTOXICATED OR DRIVING UNDER THE
INFLUENCE.
‘‘(a) IN GENERAL.—Chapter 1 of title 23, United States Code,
is amended by adding at the end the following:
‘§ 164. Minimum penalties for repeat offenders for driving
while intoxicated or driving under the influence
‘(a) DEFINITIONS.—In this section, the following definitions
apply:
‘(1) ALCOHOL CONCENTRATION.—The term ‘‘alcohol con-

centration’’ means grams of alcohol per 100 milliliters of blood
or grams of alcohol per 210 liters of breath.
‘(2) DRIVING WHILE INTOXICATED; DRIVING UNDER THE
INFLUENCE.—The terms ‘‘driving while intoxicated’’ and ‘‘driving
under the influence’’ mean driving or being in actual physical
control of a motor vehicle while having an alcohol concentration
above the permitted limit as established by each State.
‘(3) LICENSE SUSPENSION.—The term ‘‘license suspension’’
means the suspension of all driving privileges.
‘(4) MOTOR VEHICLE.—The term ‘‘motor vehicle’’ means a
vehicle driven or drawn by mechanical power and manufactured
primarily for use on public highways, but does not include
a vehicle operated solely on a rail line or a commercial vehicle.
‘(5) REPEAT INTOXICATED DRIVER LAW.—The term ‘‘repeat
intoxicated driver law’’ means a State law that provides, as
a minimum penalty, that an individual convicted of a second
or subsequent offense for driving while intoxicated or driving
under the influence after a previous conviction for that offense
shall—
‘(A) receive a driver’s license suspension for not less
than 1 year;
‘(B) be subject to the impoundment or immobilization
of each of the individual’s motor vehicles or the installation
of an ignition interlock system on each of the motor
vehicles;
‘(C) receive an assessment of the individual’s degree
of abuse of alcohol and treatment as appropriate; and
‘(D) receive—
‘(i) in the case of the second offense—
‘(I) an assignment of not less than 30 days
of community service; or
‘(II) not less than 5 days of imprisonment;
and
‘(ii) in the case of the third or subsequent offense—
‘(I) an assignment of not less than 60 days
of community service; or
‘(II) not less than 10 days of imprisonment.
‘(b) TRANSFER OF FUNDS.—
Effective dates. ‘(1) FISCAL YEARS 2001 AND 2002.—On October 1, 2000, and
October 1, 2001, if a State has not enacted or is not enforcing
a repeat intoxicated driver law, the Secretary shall transfer
an amount equal to 11⁄2 percent of the funds apportioned to
the State on that date under each of paragraphs (1), (3), and
(4) of section 104(b) to the apportionment of the State under
section 402—
‘(A) to be used for alcohol-impaired driving counter-
measures; or
‘(B) to be directed to State and local law enforcement
agencies for enforcement of laws prohibiting driving while
intoxicated or driving under the influence and other related
laws (including regulations), including the purchase of
equipment, the training of officers, and the use of additional
personnel for specific alcohol-impaired driving counter-
measures, dedicated to enforcement of the laws (including
regulations).
‘(2) FISCAL YEAR 2003 AND FISCAL YEARS THEREAFTER.— Effective date.
On October 1, 2002, and each October 1 thereafter, if a State
has not enacted or is not enforcing a repeat intoxicated driver
law, the Secretary shall transfer an amount equal to 3 percent
of the funds apportioned to the State on that date under each
of paragraphs (1), (3), and (4) of section 104(b) to the apportion-
ment of the State under section 402 to be used or directed
as described in subparagraph (A) or (B) of paragraph (1).
‘(3) USE FOR HAZARD ELIMINATION PROGRAM.—A State may
elect to use all or a portion of the funds transferred under
paragraph (1) or (2) for activities eligible under section 152.
‘(4) FEDERAL SHARE.—The Federal share of the cost of
a project carried out with funds transferred under paragraph
(1) or (2), or used under paragraph (3), shall be 100 percent.
‘(5) DERIVATION OF AMOUNT TO BE TRANSFERRED.—The
amount to be transferred under paragraph (1) or (2) may be
derived from one or more of the following:
‘(A) The apportionment of the State under section
104(b)(1).
‘(B) The apportionment of the State under section
104(b)(3).
‘(C) The apportionment of the State under section
104(b)(4).
‘(6) TRANSFER OF OBLIGATION AUTHORITY.—
‘(A) IN GENERAL.—If the Secretary transfers under this
subsection any funds to the apportionment of a State under
section 402 for a fiscal year, the Secretary shall transfer
an amount, determined under subparagraph (B), of obliga-
tion authority distributed for the fiscal year to the State
for Federal-aid highways and highway safety construction
programs for carrying out projects under section 402.
‘(B) AMOUNT.—The amount of obligation authority
referred to in subparagraph (A) shall be determined by
multiplying—
‘(i) the amount of funds transferred under subpara-
graph (A) to the apportionment of the State under
section 402 for the fiscal year, by
‘(ii) the ratio that—
‘(I) the amount of obligation authority
distributed for the fiscal year to the State for Fed-
eral-aid highways and highway safety construction
programs, bears to
‘(II) the total of the sums apportioned to the
State for Federal-aid highways and highway safety
construction programs (excluding sums not subject
to any obligation limitation) for the fiscal year.
‘(7) LIMITATION ON APPLICABILITY OF OBLIGATION
LIMITATION.—Notwithstanding any other provision of law, no
limitation on the total of obligations for highway safety pro-
grams under section 402 shall apply to funds transferred under
this subsection to the apportionment of a State under such
section.’.
‘‘(b) CONFORMING AMENDMENT.—The analysis for chapter 1 of

such title is amended by adding at the end the following:
‘164. Minimum penalties for repeat offenders for driving while intoxicated or driving
under the influence.’.’’.
(b) CONFORMING AMENDMENT.—The table of contents contained
Ante, p. 107. in section 1(b) of such Act is amended by inserting after the item
relating to section 1403 the following:
‘‘Sec. 1404. Safety incentives to prevent operation of motor vehicles by intoxicated
persons.
‘‘Sec. 1405. Open container laws.
‘‘Sec. 1406. Minimum penalties for repeat offenders for driving while intoxicated or
driving under the influence.’’.
(c) ROADSIDE SAFETY TECHNOLOGIES.—Section 1402(a)(2) of
Ante, p. 236. such Act is amended by striking ‘‘directive’’ and inserting ‘‘redirec-
tive’’.
SEC. 9006. ELIMINATION OF DUPLICATE PROVISIONS.
(a) SAN MATEO COUNTY, CALIFORNIA.—Section 1113 of the
Ante, p. 151. Transportation Equity Act for the 21st Century is amended—
(1) by striking subsection (c); and
(2) by redesignating subsection (d) as subsection (c).
(b) VALUE PRICING PILOT PROGRAM.—Section 1216(a) of such
Ante, p. 211. Act is amended by adding at the end the following:
‘‘(8) CONFORMING AMENDMENTS.—
‘‘(A) Section 1012(b)(6) of such Act (as amended by
paragraph (5) of this subsection) is amended by striking
‘146(c)’ and inserting ‘102(a)’.
‘‘(B) Section 1012(b)(8) of such Act (as added by para-
graph (7) of this subsection) is amended—
‘‘(i) in subparagraph (C) by striking ‘under this
subsection’ and inserting ‘to carry out this subsection’;
‘‘(ii) in subparagraph (D)—
‘‘(I) by striking ‘under this paragraph’ and
inserting ‘to carry out this subsection’; and
‘‘(II) by striking ‘by this paragraph’ and insert-
ing ‘to carry out this subsection’;
‘‘(iii) by striking subparagraph (A); and
‘‘(iv) by redesignating subparagraphs (B), (C), and
(D) as subparagraphs (A), (B), and (C), respectively.’’.
(c) NATIONAL DEFENSE HIGHWAYS OUTSIDE THE UNITED
Ante, p. 204. STATES.—Section 1214(e) of such Act is amended to read as follows:
‘‘(e) MINNESOTA TRANSPORTATION HISTORY NETWORK.—
‘‘(1) IN GENERAL.—The Secretary shall award a grant to
the Minnesota Historical Society for the establishment of the
Minnesota Transportation History Network to include major
exhibits, interpretive programs at national historic landmark
sites, and outreach programs with county and local historical
organizations.
‘‘(2) COORDINATION.—In carrying out subsection (a), the
Secretary shall coordinate with officials of the Minnesota
Historical Society.
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated out of the Highway Trust Fund (other
than the Mass Transit Account) $1,000,000 for each of fiscal
years 1998 through 2003 to carry out this subsection.
‘‘(4) APPLICABILITY OF TITLE 23.—Funds authorized by this
subsection shall be available for obligation in the same manner
as if such funds were apportioned under chapter 1 of title

23, United States Code; except that such funds shall remain
available until expended.’’.
(d) ENTRANCE PAVING AT NINIGRET NATIONAL WILDLIFE
REFUGE.—Section 1214(i) of such Act is amended by striking Ante, p. 204.
‘‘$750,000’’ each place it appears and inserting ‘‘$75,000’’.
SEC. 9007. HIGHWAY FINANCE.
(a) IN GENERAL.—Section 1503 of the Transportation Equity
Act for the 21st Century is amended by adding at the end the Ante, p. 241.
following:
‘‘(c) TECHNICAL AMENDMENTS.—Section 188 of title 23, United
amended—
‘‘(1) in subsection (a)(2) by striking ‘1998’ and inserting
‘1999’; and
‘‘(2) in subsection (c)—
‘‘(A) by striking ‘1998’ and inserting ‘1999’; and
‘‘(B) by striking the table and inserting the following:
Maximum amount
‘Fiscal year: of credit:
1999 .....................................................................................................
$1,600,000,000
2000 .....................................................................................................
$1,800,000,000
2001 .....................................................................................................
$2,200,000,000
2002 .....................................................................................................
$2,400,000,000
2003 .....................................................................................................$2,600,000,000.’.’’.
(b) CONFORMING AMENDMENTS.—The table of contents con-
tained in section 1(b) of the Transportation Equity Act for the
21st Century is amended— Ante, p. 107.
(1) in the item relating to section 1119 by striking ‘‘and
safety’’; and
(2) by striking the items relating to subtitle E of title
I and inserting the following:
‘‘Subtitle E—Finance
‘‘CHAPTER 1—TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION
‘‘Sec. 1501. Short title.
‘‘Sec. 1502. Findings.
‘‘Sec. 1503. Establishment of program.
‘‘Sec. 1504. Duties of the Secretary.
‘‘CHAPTER 2—STATE INFRASTRUCTURE BANK PILOT PROGRAM
‘‘Sec. 1511. State infrastructure bank pilot program.’’.
SEC. 9008. HIGH PRIORITY PROJECTS TECHNICAL CORRECTIONS.
The table contained in section 1602 of the Transportation
(1) in item 1 by striking ‘‘1.275’’ and inserting ‘‘1.7’’;
(5) in item 140 by inserting ‘‘-VFHS Center’’ after ‘‘Park’’;
(7) in item 164—
(A) by inserting ‘‘, and $3,000,000 for the period of
fiscal years 1998 and 1999 shall be made available to
carry out section 1217( j)’’ after ‘‘Pennsylvania’’; and
(B) by striking ‘‘25’’ and inserting ‘‘24.78’’;
(8) by striking item 166 and inserting the following:
‘‘166. Michigan ........ Improve Tenth Street, Port Huron ................ 1.8’’;
‘‘242. Minnesota ...... Construct Third Street North, CSAH 81,

Waite Park and St. Cloud ........................... 1.0’’;
‘‘250. Indiana .......... Reconstruct Old Merridan Corridor from

Pennsylvania Avenue to Gilford Road ... 1.35’’;

(12) in item 263 by striking ‘‘Upgrade Highway 99 between
State Highway 70 and Lincoln Road, Sutter County’’ and insert-
ing ‘‘Upgrade Highway 99, Sutter County’’;
(15) in item 345 by striking ‘‘8’’ and inserting ‘‘19.4’’;
(17) in item 421 by striking ‘‘11’’ and inserting ‘‘6’’;
‘‘525. Alaska ............ Construct Bradfield Canal Road .................... 1’’;

(21) in item 576 by striking ‘‘0.52275’’ and inserting
‘‘0.69275’’;
(23) in item 591 by striking ‘‘10’’ and inserting ‘‘5’’;
(26) in item 702 by striking ‘‘10.5’’ and inserting ‘‘10’’;
(27) in item 746 by inserting ‘‘, and for the purchase of
the Block House in Scott County, Virginia’’ after ‘‘Forest’’;
(29) in item 769 by striking ‘‘Construct new I–95 inter-
change with Highway 99W, Tehama County’’ and inserting
‘‘Construct new I–5 interchange with Highway 99W, Tehama
County’’;
(32) in item 803 by striking ‘‘Tomahark’’ and inserting
‘‘Tomahawk’’;
(33) in item 836 by striking ‘‘Construct’’ and all that follows
through ‘‘for’’ and inserting ‘‘To the National Park Service for
construction of the’’;
(34) in item 854 by striking ‘‘0.75’’ and inserting ‘‘1’’;
‘‘1065. Texas .............. Construct a 4-lane divided highway on

Artcraft Road from I–10 to Route 375 in
El Paso ...................................................... 5’’;
(40) in item 1192 by striking ‘‘24.97725’’ and inserting

‘‘24.55725’’;
(41) in item 1200 by striking ‘‘Upgrade (all weather) on
U.S. 2, U.S. 41, and M 35’’ and inserting ‘‘Upgrade (all weather)
on Delta County’s reroute of U.S. 2, U.S. 41, and M 35’’;
(43) in item 1271 by striking ‘‘Spur’’ and all that follows
through ‘‘U.S. 59’’ and inserting ‘‘rail-grade separations (Rosen-
berg Bypass) at U.S. 59(S)’’;
(45) in item 1288 by inserting ‘‘30’’ after ‘‘U.S.’’;
(48) in item 1395 by striking ‘‘Construct’’ and all that
follows through ‘‘Road’’ and inserting ‘‘Upgrade Route 219
between Meyersdale and Somerset’’;
(49) in item 1468 by striking ‘‘Reconstruct’’ and all that
follows through ‘‘U.S. 23’’ and inserting ‘‘Conduct engineering
and design and improve I–94 in Calhoun and Jackson
Counties’’;
(50) in item 1474—
(A) by striking ‘‘in Euclid’’ and inserting ‘‘and London
Road in Cleveland’’; and
(B) by striking ‘‘3.75’’ and inserting ‘‘8.0’’;
(51) in item 1535 by striking ‘‘Stanford’’ and inserting
‘‘Stamford’’;
(52) in item 1538 by striking ‘‘and Winchester’’ and
inserting ‘‘, Winchester, and Torrington’’;
‘‘1546. Michigan ........ Construct Bridge-to-Bay bike path, St.

Clair County ............................................. 0.450’’;
‘‘1549. New York ....... Center for Advanced Simulation and

Technology at Dowling College ............... 0.6’’;

(56) in item 1703 by striking ‘‘I–80’’ and inserting
‘‘I–180’’;
(57) in item 1726 by striking ‘‘I–179’’ and inserting
‘‘I–79’’;
‘‘1770. Virginia .......... Operate and conduct research on the

‘Smart Road’ in Blacksburg ..................... 6.025’’;
(59) in item 1810 by striking ‘‘Construct Rio Rancho High-

way’’ and inserting ‘‘Northwest Albuquerque/Rio Rancho high
priority roads’’;
(60) in item 1815 by striking ‘‘High’’ and all that follows

through ‘‘projects’’ and inserting ‘‘Highway and bridge projects
that Delaware provides for by law’’;
(61) in item 1844 by striking ‘‘Prepare’’ and inserting
‘‘Repair’’;
‘‘1850. Missouri ......... Resurface and maintain roads located in

Missouri State parks ............................... 5’’;
(63) in item 661 by striking ‘‘SR 800’’ and inserting

‘‘SR 78’’;
(64) in item 1704 by inserting ‘‘, Pittsburgh,’’ after ‘‘Road’’;
(65) in item 1710 by inserting ‘‘, Bethlehem’’ after ‘‘site’’;
and
(66) in item 1626 by striking ‘‘1’’ and inserting ‘‘2’’.
SEC. 9009. FEDERAL TRANSIT ADMINISTRATION PROGRAMS.
(a) DEFINITIONS.—Section 3003 of the Federal Transit Act of
Ante, p. 338. 1998 is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘Section 5302’’;
and
‘‘(b) CONFORMING AMENDMENTS.—Section 5302 (as amended
by subsection (a) of this section) is amended in subsection (a)(1)(G)(i)
by striking ‘daycare and’ and inserting ‘daycare or ’.’’.
(b) METROPOLITAN PLANNING.—Section 3004 of the Federal
Ante, p. 341. Transit Act of 1998 is amended—
(1) in subsection (b)—
(A) in paragraph (1) by striking subparagraph (A) and
‘‘(A) by striking ‘general local government representing ’
and inserting ‘general purpose local government that
together represent’; and’’;
(B) in paragraph (3) by striking ‘‘and’’ at the end;
(C) in paragraph (4) by striking subparagraph (A) and
‘‘(A) by striking ‘general local government representing ’
and inserting ‘general purpose local government that
together represent’; and’’;
(D) by redesignating paragraph (4) as paragraph (5);
and
(E) by inserting after paragraph (3) the following:
‘‘(4) in paragraph (4)(A) by striking ‘(3)’ and inserting ‘(5)’;
and’’;
(2) in subsection (d) by striking the closing quotation marks
and the final period at the end and inserting the following:
‘‘(5) COORDINATION.—If a project is located within the
boundaries of more than one metropolitan planning organiza-
tion, the metropolitan planning organizations shall coordinate
plans regarding the project.
‘‘(6) LAKE TAHOE REGION.—
‘‘(A) DEFINITION.—In this paragraph, the term ‘Lake
Tahoe region’ has the meaning given the term ‘region’
in subdivision (a) of article II of the Tahoe Regional Plan-
ning Compact, as set forth in the first section of Public
Law 96–551 (94 Stat. 3234).
‘‘(B) TRANSPORTATION PLANNING PROCESS.—The

Secretary shall—
‘‘(i) establish with the Federal land management
agencies that have jurisdiction over land in the Lake
Tahoe region a transportation planning process for the
region; and
‘‘(ii) coordinate the transportation planning process
with the planning process required of State and local
governments under this chapter and sections 134 and
135 of title 23, United States Code.
‘‘(C) INTERSTATE COMPACT.— California.
‘‘(i) IN GENERAL.—Subject to clause (ii) and not- Nevada.
withstanding subsection (b), to carry out the transpor-
tation planning process required by this section, the
consent of Congress is granted to the States of Califor-
nia and Nevada to designate a metropolitan planning
organization for the Lake Tahoe region, by agreement
between the Governors of the States of California and
Nevada and units of general purpose local government
that together represent at least 75 percent of the
affected population (including the central city or cities
(as defined by the Bureau of the Census)), or in accord-
ance with procedures established by applicable State
or local law.
‘‘(ii) INVOLVEMENT OF FEDERAL LAND MANAGEMENT
AGENCIES.—
‘‘(I) REPRESENTATION.—The policy board of a
metropolitan planning organization designated
under clause (i) shall include a representative of
each Federal land management agency that has
jurisdiction over land in the Lake Tahoe region.
‘‘(II) FUNDING.—In addition to funds made
available to the metropolitan planning organiza-
tion under other provisions of this chapter and
under title 23, not more than 1 percent of the
funds allocated under section 202 of title 23 may
be used to carry out the transportation planning
process for the Lake Tahoe region under this
subparagraph.
‘‘(D) ACTIVITIES.—Highway projects included in
transportation plans developed under this paragraph—
‘‘(i) shall be selected for funding in a manner that
facilitates the participation of the Federal land
management agencies that have jurisdiction over land
in the Lake Tahoe region; and
‘‘(ii) may, in accordance with chapter 2 of title
23, be funded using funds allocated under section 202
of title 23, United States Code.’’; and
‘‘(f ) TECHNICAL ADJUSTMENTS.—Section 5303(f ) is amended—
‘‘(1) in paragraph (1) (as amended by subsection (e)(1) of
this subsection)—
‘‘(A) in subparagraph (C) by striking ‘and’ at the end;
‘‘(B) in subparagraph (D) by striking the period at
the end and inserting ‘; and’; and
‘‘(C) by adding at the end the following:
‘(E) the financial plan may include, for illustrative pur-

poses, additional projects that would be included in the adopted
long-range plan if reasonable additional resources beyond those
identified in the financial plan were available, except that,
for the purpose of developing the long-range plan, the metropoli-
tan planning organization and the State shall cooperatively
develop estimates of funds that will be available to support
plan implementation.’; and
‘‘(2) by adding at the end the following:
‘(6) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.—Notwith-
standing paragraph (1)(E), a State or metropolitan planning
organization shall not be required to select any project from the
illustrative list of additional projects included in the financial plan
under paragraph (1)(B).’.’’.
(c) METROPOLITAN TRANSPORTATION IMPROVEMENT PROGRAM.—
Ante, p. 345. Section 3005 of the Federal Transit Act of 1998 is amended—
(1) in the section heading by inserting ‘‘METROPOLITAN’’
before ‘‘TRANSPORTATION’’; and
‘‘(d) TECHNICAL ADJUSTMENTS.—Section 5304 is amended—
‘‘(1) in subsection (a) (as amended by subsection (a) of
this section)—
‘‘(A) by striking ‘In cooperation with’ and inserting
the following:
‘(1) IN GENERAL.—In cooperation with’; and
‘‘(B) by adding at the end the following:
‘(2) FUNDING ESTIMATE.—For the purpose of developing
the transportation improvement program, the metropolitan
planning organization, public transit agency, and the State
shall cooperatively develop estimates of funds that are reason-
ably expected to be available to support program implementa-
tion.’;
‘‘(2) in subsection (b)(2)—
‘‘(A) in subparagraph (B) by striking ‘and’ at the end;
and
‘‘(B) in subparagraph (C) (as added by subsection (b)
of this section) by striking ‘strategies which may include’
and inserting the following: ‘strategies; and
‘(D) may include’; and
‘‘(3) in subsection (c) by striking paragraph (4) (as amended
by subsection (c) of this section) and inserting the following:
‘(4) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.—
‘(A) IN GENERAL.—Notwithstanding subsection
(b)(2)(D), a State or metropolitan planning organization
shall not be required to select any project from the illus-
trative list of additional projects included in the financial
plan under subsection (b)(2)(D).
‘(B) ACTION BY SECRETARY.—Action by the Secretary
shall be required for a State or metropolitan planning
organization to select any project from the illustrative list
of additional projects included in the plan under subsection
(b)(2) for inclusion in an approved transportation improve-
ment plan.’.’’.
(d) TRANSPORTATION MANAGEMENT AREAS.—Section 3006(d) of
Ante, p. 346. the Federal Transit Act of 1998 is amended to read as follows:
‘‘(d) PROJECT SELECTION.—Section 5305(d)(1) is amended to
read as follows: ‘(1)(A) All federally funded projects carried out
within the boundaries of a transportation management area under

title 23 (excluding projects carried out on the National Highway
System and projects carried out under the bridge and interstate
maintenance program) or under this chapter shall be selected from
the approved transportation improvement program by the metro-
politan planning organization designated for the area in consulta-
tion with the State and any affected public transit operator.
‘(B) Projects carried out within the boundaries of a transpor-
tation management area on the National Highway System and
projects carried out within such boundaries under the bridge pro-
gram or the interstate maintenance program shall be selected from
the approved transportation improvement program by the State
in cooperation with the metropolitan planning organization des-
ignated for the area.’.’’.
(e) URBANIZED AREA FORMULA GRANTS.—Section 3007 of the
Federal Transit Act of 1998 is amended by adding at the end Ante, p. 347.
the following:
‘‘(h) TECHNICAL ADJUSTMENTS.—
‘‘(1) GENERAL AUTHORITY.—Section 5307(b) (as amended
by subsection (c)(1)(B) of this section) is amended by adding
at the end the following: ‘The Secretary may make grants
under this section from funds made available for fiscal year
1998 to finance the operating costs of equipment and facilities
for use in mass transportation in an urbanized area with a
population of at least 200,000.’.
‘‘(2) REPORT.—Section 5307(k)(3) (as amended by subsection
(f ) of this section) is amended by inserting ‘preceding’ before
‘fiscal year’.’’.
(f ) CLEAN FUELS FORMULA GRANT PROGRAM.—Section 3008
of the Federal Transit Act of 1998 is amended by adding at the Ante, p. 348.
end the following:
‘‘(c) TECHNICAL ADJUSTMENTS.—Section 5308(e)(2) (as added
by subsection (a) of this section) is amended by striking ‘$50,000,000’
and inserting ‘35 percent’.’’.
(g) CAPITAL INVESTMENT GRANTS AND LOANS.—Section 3009
of the Federal Transit Act of 1998 is amended by adding at the Ante, p. 352.
end the following:
‘‘(k) TECHNICAL ADJUSTMENTS.—
‘‘(1) CRITERIA.—Section 5309(e) (as amended by subsection
(e) of this section) is amended—
‘‘(A) in paragraph (3)(C) by striking ‘urban’ and insert-
ing ‘suburban’;
‘‘(B) in the second sentence of paragraph (6) by striking
‘or not’ and all that follows through ‘, based’ and inserting
‘or ‘‘not recommended’’, based’; and
‘‘(C) in the last sentence of paragraph (6) by inserting
‘of the’ before ‘criteria established’.
‘‘(2) LETTERS OF INTENT AND FULL FUNDING GRANT AGREE-
MENTS.—Section 5309(g) (as amended by subsection (f ) of this
section) is amended in paragraph (4) by striking ‘5338(a)’ and
all that follows through ‘2003’ and inserting ‘5338(b) of this
title for new fixed guideway systems and extensions to existing
fixed guideway systems and the amount appropriated under
section 5338(h)(5) or an amount equivalent to the last 2 fiscal
years of funding authorized under section 5338(b) for new fixed
guideway systems and extensions to existing fixed guideway
systems’.
‘‘(3) ALLOCATING AMOUNTS.—Section 5309(m) (as amended

by subsection (g) of this section) is amended—
‘‘(A) in paragraph (1) by inserting ‘(b)’ after ‘5338’;
‘‘(B) by striking paragraph (2) and inserting the
following:
‘(2) NEW FIXED GUIDEWAY GRANTS.—
‘(A) LIMITATION ON AMOUNTS AVAILABLE FOR ACTIVITIES
OTHER THAN FINAL DESIGN AND CONSTRUCTION.—Not more
than 8 percent of the amounts made available in each
fiscal year by paragraph (1)(B) shall be available for activi-
ties other than final design and construction.
‘(B) FUNDING FOR FERRY BOAT SYSTEMS.—
‘(i) AMOUNTS UNDER (1)(B).—Of the amounts made
available under paragraph (1)(B), $10,400,000 shall
be available in each of fiscal years 1999 through 2003
for capital projects in Alaska or Hawaii, for new fixed
guideway systems and extensions to existing fixed
guideway systems that are ferry boats or ferry terminal
facilities, or that are approaches to ferry terminal facili-
ties.
‘(ii) AMOUNTS UNDER 5338(H)(5).—Of the amounts
appropriated under section 5338(h)(5), $3,600,000 shall
be available in each of fiscal years 1999 through 2003
for capital projects in Alaska or Hawaii, for new fixed
guideway systems and extensions to existing fixed
guideway systems that are ferry boats or ferry terminal
facilities, or that are approaches to ferry terminal facili-
ties.’;
‘‘(C) by redesignating paragraph (4) as paragraph
(3)(C);
‘‘(D) in paragraph (3) by adding at the end the
following:
‘(D) OTHER THAN URBANIZED AREAS.—Of amounts made
available by paragraph (1)(C), not less than 5.5 percent
shall be available in each fiscal year for other than urban-
ized areas.’;
‘‘(E) by striking paragraph (5); and
‘‘(F) by inserting after paragraph (3) the following:
‘(4) ELIGIBILITY FOR ASSISTANCE FOR MULTIPLE PROJECTS.—
A person applying for or receiving assistance for a project
described in subparagraph (A), (B), or (C) of paragraph (1)
may receive assistance for a project described in any other
of such subparagraphs.’.’’.
(h) REFERENCES TO FULL FUNDING GRANT AGREEMENTS.—
Ante, p. 352. Section 3009(h)(3) of the Federal Transit Act of 1998 is amended—
(1) by striking ‘‘and’’ at the end of subparagraph (A)(ii);
(2) by striking the period at the end of subparagraph (B)
and inserting a semicolon; and
‘‘(C) in section 5328(a)(4) by striking ‘section 5309(m)(2)
of this title’ and inserting ‘5309(o)(1)’; and
‘‘(D) in section 5309(n)(2) by striking ‘in a way’ and
inserting ‘in a manner’.’’.
(i) DOLLAR VALUE OF MOBILITY IMPROVEMENTS.—Section
Ante, p. 357. 3010(b)(2) of the Federal Transit Act of 1998 is amended by striking
‘‘Secretary’’ and inserting ‘‘Comptroller General’’.
( j) INTELLIGENT TRANSPORTATION SYSTEM APPLICATIONS.—

Section 3012 of the Federal Transit Act of 1998 is amended by Ante, p. 358.
moving paragraph (3) of subsection (a) to the end of subsection
(b) and by redesignating such paragraph (3) as paragraph (4).
(k) ADVANCED TECHNOLOGY PILOT PROJECT.—Section 3015 of
the Federal Transit Act of 1998 is amended— Ante, p. 359.
(1) in subsection (c)(2) by adding at the end the following:
‘‘Financial assistance made available under this subsection and
projects assisted with the assistance shall be subject to section
5333(a) of title 49, United States Code.’’; and
‘‘(d) TRAINING AND CURRICULUM DEVELOPMENT.—
‘‘(1) IN GENERAL.—Any funds made available by section
5338(e)(2)(C)(iii) of title 49, United States Code, shall be avail-
able in equal amounts for transportation research, training,
and curriculum development at institutions identified in sub-
paragraphs (E) and (F) of section 5505( j)(3) of such title.
‘‘(2) SPECIAL RULE.—If the institutions identified in para-
graph (1) are selected pursuant to 5505(i)(3)(B) of such title
in fiscal year 2002 or 2003, the funds made available to carry
out this subsection shall be available to those institutions to
carry out the activities required pursuant to section
5505(i)(3)(B) of such title for that fiscal year.’’.
(l) NATIONAL TRANSIT INSTITUTE.—Section 3017(a) of the
Federal Transit Act of 1998 is amended to read as follows: Ante, p. 361.
‘‘(a) IN GENERAL.—Section 5315 is amended—
‘‘(1) in the section heading by striking ‘mass transpor-
tation’ and inserting ‘transit’;
‘‘(2) in subsection (a)—
‘‘(A) by striking ‘mass transportation’ in the first sen-
tence and inserting ‘transit’;
‘‘(B) in paragraph (5) by inserting ‘and architectural
design’ before the semicolon at the end;
‘‘(C) in paragraph (7) by striking ‘carrying out’ and
inserting ‘delivering’;
‘‘(D) in paragraph (11) by inserting ‘, construction
management, insurance, and risk management’ before the
semicolon at the end;
‘‘(E) in paragraph (13) by striking ‘and’ at the end;
‘‘(F) in paragraph (14) by striking the period at the
end and inserting a semicolon; and
‘‘(G) by adding at the end the following:
‘(15) innovative finance; and
‘(16) workplace safety.’.’’.
(m) PILOT PROGRAM.—Section 3021(a) of the Federal Transit
Act of 1998 is amended by inserting ‘‘single-State’’ before ‘‘pilot Ante, p. 363.
program’’.
(n) ARCHITECTURAL, ENGINEERING, AND DESIGN CONTRACTS.—
Section 3022 of the Federal Transit Act of 1998 is amended by Ante, p. 363.
‘‘(b) CONFORMING AMENDMENT.—Section 5325(b) (as redesig-
nated by subsection (a)(2) of this section) is amended—
‘‘(1) by inserting ‘or requirement’ after ‘A contract’; and
‘‘(2) by inserting before the last sentence the following:
‘When awarding such contracts, recipients of assistance under
this chapter shall maximize efficiencies of administration by
accepting nondisputed audits conducted by other governmental
agencies, as provided in subparagraphs (C) through (F) of

section 112(b)(2) of title 23, United States Code.’.’’.
(o) CONFORMING AMENDMENT.—Section 3027 of the Federal
Ante, p. 366. Transit Act of 1998 is amended—
(1) in subsection (c) by striking ‘‘600,000’’ each place it
appears and inserting ‘‘900,000’’; and
‘‘(d) CONFORMING AMENDMENT.—The item relating to section
5336 in the table of sections for chapter 53 is amended by striking
‘block grants’ and inserting ‘formula grants’.’’.
(p) APPORTIONMENT FOR FIXED GUIDEWAY MODERNIZATION.—
Ante, p. 366. Section 3028 of the Federal Transit Act of 1998 is amended by
‘‘(c) CONFORMING AMENDMENTS.—Section 5337(a) (as amended
by subsection (a) of this section) is amended—
‘‘(1) in paragraph (2)(B) by striking ‘(e)’ and inserting
‘(e)(1)’;
‘‘(2) in paragraph (3)(D)—
‘‘(A) by striking ‘(ii)’; and
‘‘(B) by striking ‘(e)’ and inserting ‘(e)(1)’;
‘‘(3) in paragraph (4) by striking ‘(e)’ and inserting ‘(e)(1)’;
‘‘(4) in paragraph (5)(A) by striking ‘(e)’ and inserting
‘(e)(2)’;
‘‘(5) in paragraph (5)(B) by striking ‘(e)’ and inserting
‘(e)(2)’;
‘‘(6) in paragraph (6) by striking ‘(e)’ each place it appears
and inserting ‘(e)(2)’; and
‘‘(7) in paragraph (7) by striking ‘(e)’ each place it appears
and inserting ‘(e)(2)’.’’.
(q) AUTHORIZATIONS.—Section 3029 of the Federal Transit Act
Ante, p. 368. of 1998 is amended by adding at the end the following:
‘‘(c) TECHNICAL ADJUSTMENTS.—Section 5338 (as amended by
subsection (a) of this section) is amended—
‘‘(1) in subsection (c)(2)(A)(i) by striking ‘$43,200,000’ and
inserting ‘$42,200,000’;
‘‘(2) in subsection (c)(2)(A)(ii) by striking ‘$46,400,000’ and
inserting ‘$48,400,000’;
‘‘(3) in subsection (c)(2)(A)(iii) by striking ‘$51,200,000’ and
inserting ‘$50,200,000’;
‘‘(4) in subsection (c)(2)(A)(iv) by striking ‘$52,800,000’ and
inserting ‘$53,800,000’;
‘‘(5) in subsection (c)(2)(A)(v) by striking ‘$57,600,000’ and
inserting ‘$58,600,000’;
‘‘(6) in subsection (d)(2)(C)(iii) by inserting before the semi-
colon ‘, including not more than $1,000,000 shall be available
to carry out section 5315(a)(16)’;
‘‘(7) in subsection (e)—
‘‘(A) by striking ‘5317(b)’ each place it appears and
inserting ‘5505’;
‘‘(B) in paragraph (1) by striking ‘There are’ and
inserting ‘Subject to paragraph (2)(C), there are’;
‘‘(C) in paragraph (2)—
‘‘(i) in subparagraph (A) by striking ‘There shall’
and inserting ‘Subject to subparagraph (C), there shall’;
‘‘(ii) in subparagraph (B) by striking ‘In addition’
and inserting ‘Subject to subparagraph (C), in addition’;
and
‘‘(iii) by adding at the end the following:

‘(C) FUNDING OF CENTERS.—
‘(i) Of the amounts made available under subpara-
graph (A) and paragraph (1) for each fiscal year—
‘(I) $2,000,000 shall be available for the center
identified in section 5505( j)(4)(A); and
‘(II) $2,000,000 shall be available for the center
identified in section 5505( j)(4)(F).
‘(ii) For each of fiscal years 1998 through 2001,
of the amounts made available under this paragraph
and paragraph (1)—
‘(I) $400,000 shall be available from amounts
made available under subparagraph (A) of this
paragraph and under paragraph (1) for each of
the centers identified in subparagraphs (E) and
(F) of section 5505( j)(3); and
‘(II) $350,000 shall be available from amounts
made available under subparagraph (B) of this
paragraph and under paragraph (1) for each of
the centers identified in subparagraphs (E) and
(F) of section 5505( j)(3).
‘(iii) Any amounts made available under this para-
graph or paragraph (1) for any fiscal year that remain
after distribution under clauses (i) and (ii), shall be
available for the purposes identified in section 3015(d)
of the Federal Transit Act of 1998.’; and
‘‘(D) by adding at the end the following:
‘(3) SPECIAL RULE.—Nothing in this subsection shall be
construed to limit the transportation research conducted by
the centers funded by this section.’;
‘‘(8) in subsection (g)(2) by striking ‘(c)(2)(B),’ and all that
follows through ‘(f )(2)(B),’ and inserting ‘(c)(1), (c)(2)(B), (d)(1),
(d)(2)(B), (e)(1), (e)(2)(B), (f )(1), (f )(2)(B),’;
‘‘(9) in subsection (h) by inserting ‘under the Transportation
Discretionary Spending Guarantee for the Mass Transit Cat-
egory’ after ‘through (f )’; and
‘‘(10) in subsection (h)(5) by striking subparagraphs (A)
through (E) and inserting the following:
‘(A) for fiscal year 1999 $400,000,000;
‘(B) for fiscal year 2000 $410,000,000;
‘(C) for fiscal year 2001 $420,000,000;
‘(D) for fiscal year 2002 $430,000,000; and
‘(E) for fiscal year 2003 $430,000,000;’.’’.
(r) PROJECTS FOR FIXED GUIDEWAY SYSTEMS.—Section 3030
of the Federal Transit Act of 1998 is amended— Ante, p. 373.
(1) in subsection (a)—
(A) in paragraph (8) by inserting ‘‘North-’’ before
‘‘South’’;
(B) in paragraph (42) by striking ‘‘Maryland’’ and
inserting ‘‘Baltimore’’;
(C) in paragraph (103) by striking ‘‘busway’’ and
inserting ‘‘Boulevard transitway’’;
(D) in paragraph (106) by inserting ‘‘CTA’’ before
‘‘Douglas’’;
(E) by striking paragraph (108) and inserting the
following:
‘‘(108) Greater Albuquerque Mass Transit Project.’’; and
(F) by adding at the end the following:

‘‘(109) Hartford City Light Rail Connection to Central
Business District.
‘‘(110) Providence–Boston Commuter Rail.
‘‘(111) New York–St. George’s Ferry Intermodal Terminal.
‘‘(112) New York–Midtown West Ferry Terminal.
‘‘(113) Pinellas County–Mobility Initiative Project.
‘‘(114) Atlanta–MARTA Extension (S. De Kalb-Lindbergh).’’;
(2) in subsection (b)—
(A) by striking paragraph (2) and inserting the
following:
‘‘(2) Sioux City–Light Rail.’’;
(B) by striking paragraph (40) and inserting the
following:
‘‘(40) Santa Fe–El Dorado Rail Link.’’;
(C) by striking paragraph (44) and inserting the
following:
‘‘(44) Albuquerque–High Capacity Corridor.’’;
(D) by striking paragraph (53) and inserting the
following:
‘‘(53) San Jacinto–Branch Line (Riverside County).’’; and
(E) by adding at the end the following:
‘‘(69) Chicago–Northwest Rail Transit Corridor.
‘‘(70) Vermont–Burlington-Essex Commuter Rail.’’; and
(3) in subsection (c)—
(A) in paragraph (1)(A)—
(i) in the matter preceding clause (i) by inserting
‘‘(even if the project is not listed in subsection (a)
or (b))’’ before the colon;
(ii) by striking clause (ii) and inserting the
following:
‘‘(ii) San Diego Mission Valley and Mid-Coast
Corridor, $325,000,000.’’;
(iii) by striking clause (v) and inserting the
following:
‘‘(v) Hartford City Light Rail Connection to Central
Business District, $33,000,000.’’;
(iv) by striking clause (xxiii) and inserting the
following:
‘‘(xxiii) Kansas City—I–35 Commuter Rail,
$30,000,000.’’;
(v) in clause (xxxii) by striking ‘‘Whitehall Ferry
Terminal’’ and inserting ‘‘Staten Island Ferry-White-
hall Intermodal Terminal’’;
(vi) by striking clause (xxxv) and inserting the
following:
‘‘(xxxv) New York–Midtown West Ferry Terminal,
$16,300,000.’’;
(vii) in clause (xxxix) by striking ‘‘Allegheny
County’’ and inserting ‘‘Pittsburgh’’;
(viii) by striking clause (xvi) and inserting the
following:
‘‘(xvi) Northeast Indianapolis Corridor,
$10,000,000.’’;
(ix) by striking clause (xxix) and inserting the
following:
‘‘(xxix) Greater Albuquerque Mass Transit Project,

$90,000,000.’’;
(x) by striking clause (xliii) and inserting the
following:
‘‘(xliii) Providence–Boston Commuter Rail,
$10,000,000.’’; and
(xi) by striking clause (li) and inserting the
following:
‘‘(li) Dallas-Ft. Worth RAILTRAN (Phase-II),
$12,000,000.’’;
(B) by striking the heading for subsection (c)(2) and
inserting ‘‘ADDITIONAL AMOUNTS’’; and
(C) in paragraph (3) by inserting after the first sen-
tence the following: ‘‘The project shall also be exempted
from all requirements relating to criteria for grants and
loans for fixed guideway systems under section 5309(e)
of such title and from regulations required under that
section.’’.
(s) NEW JERSEY URBAN CORE PROJECT.—Section 3030(e) of
the Federal Transit Act of 1998 is amended by adding at the Ante, p. 373.
end the following:
‘‘(4) TECHNICAL ADJUSTMENT.—Section 3031(d) of the
Intermodal Surface Transportation Efficiency Act of 1991 (as
amended by paragraph (3)(B) of this subsection) is amended—
‘‘(A) by striking ‘of the West Shore Line’ and inserting
‘or the West Shore Line’; and
‘‘(B) by striking ‘directly connected to’ and all that
follows through ‘Newark International Airport’ the first
place it appears.’’.
(t) BALTIMORE-WASHINGTON TRANSPORTATION IMPROVE-
MENTS.—Section 3030 of the Federal Transit Act of 1998 is amended
‘‘(h) TECHNICAL ADJUSTMENT.—Section 3035(nn) of the Inter-
modal Surface Transportation Efficiency Act of 1991 (105 Stat.
2134) (as amended by subsection (g)(1)(C) of this section) is amended
by inserting after ‘expenditure of’ the following: ‘section 5309 funds
to the aggregate expenditure of’.’’.
(u) BUS PROJECTS.—Section 3031 of the Federal Transit Act
of 1998 is amended— Ante, p. 381.
(1) in the table contained in subsection (a)—
(A) by striking item 64;
(B) in item 69 by striking ‘‘Rensslear’’ each place it
appears and inserting ‘‘Rensselaer’’;
(C) in item 103 by striking ‘‘facilities and’’; and
(D) by striking item 150;
(2) by striking the heading for subsection (b) and inserting
‘‘ADDITIONAL AMOUNTS’’;
(3) in subsection (b) by inserting after ‘‘2000’’ the first
place it appears ‘‘with funds made available under section
5338(h)(6) of such title’’; and
(4) in item 2 of the table contained in subsection (b) by
striking ‘‘Rensslear’’ each place it appears and inserting
‘‘Rensselaer’’.
(v) CONTRACTING OUT STUDY.—Section 3032 of the Federal
Transit Act of 1998 is amended— Ante, p. 385.
(1) in subsection (a) by striking ‘‘3’’ and inserting ‘‘6’’;
(2) in subsection (d) by striking ‘‘the Mass Transit Account

of the Highway Trust Fund’’ and inserting ‘‘funds made avail-
able under section 5338(f )(2) of title 49, United States Code,’’;
(3) in subsection (d) by striking ‘‘1998’’ and inserting ‘‘1999’’;
and
(4) in subsection (e) by striking ‘‘subsection (c)’’ and insert-
ing ‘‘subsection (d)’’.
(w) JOB ACCESS AND REVERSE COMMUTE GRANTS.—Section 3037
Ante, p. 387. of the Federal Transit Act of 1998 is amended—
(1) in subsection (b)(4)(A)—
(A) by inserting ‘‘designated recipients under section
5307(a)(2) of title 49, United States Code,’’ after ‘‘from
among’’; and
(B) by inserting a comma after ‘‘and agencies’’;
(2) in subsection (b)(4)(B)—
(A) by striking ‘‘at least’’ and inserting ‘‘less than’’;
(B) by inserting ‘‘designated recipients under section
5307(a)(2) of title 49, United States Code,’’ after ‘‘from
among’’; and
(C) by inserting ‘‘and agencies,’’ after ‘‘authorities’’;
(3) in subsection (f )(2)—
(A) by striking ‘‘(including bicycling)’’; and
(B) by inserting ‘‘(including bicycling)’’ after ‘‘additional
services’’;
(4) in subsection (h)(2)(B) by striking ‘‘403(a)(5)(C)(ii)’’ and
inserting ‘‘403(a)(5)(C)(vi)’’;
(5) in the heading for subsection (l)(1)(C) by striking ‘‘FROM
THE GENERAL FUND’’;
(6) in subsection (l)(1)(C) by inserting ‘‘under the Transpor-
tation Discretionary Spending Guarantee for the Mass Transit
Category’’ after ‘‘(B)’’; and
(7) in subsection (l)(3)(B) by striking ‘‘at least’’ and inserting
‘‘less than’’.
(x) RURAL TRANSPORTATION ACCESSIBILITY INCENTIVE
Ante, p. 392. PROGRAM.—Section 3038 of the Federal Transit Act of 1998 is
amended—
(1) in subsection (a)(1)(A) by inserting before the semicolon
‘‘or connecting 1 or more rural communities with an urban
area not in close proximity’’;
(2) in subsection (g)(1)—
(A) by inserting ‘‘over-the-road buses used substantially
or exclusively in’’ after ‘‘operators of ’’; and
(B) by inserting at the end the following:
‘‘Such sums shall remain available until expended.’’; and
(3) in subsection (g)(2)—
(A) by striking ‘‘each of ’’; and
(B) by adding at the end the following: ‘‘Such sums
shall remain available until expended.’’.
(y) STUDY OF TRANSIT NEEDS IN NATIONAL PARKS AND RELATED
Ante, p. 393. PUBLIC LANDS.—Section 3039(b) of the Federal Transit Act of 1998
is amended—
(1) in paragraph (1) by striking ‘‘in order to carry’’ and
inserting ‘‘assist in carrying’’; and
‘‘(3) DEFINITION.—For purposes of this subsection, the term
‘Federal land management agencies’ means the National Park
Service, the United States Fish and Wildlife Service, and the
Bureau of Land Management.’’.
(z) OBLIGATION CEILING.—Section 3040 of the Federal Transit
Act of 1998 is amended— Ante, p. 394.
(1) by striking paragraph (2) and inserting the following:
‘‘(2) $5,797,000,000 in fiscal year 2000;’’; and
(2) in paragraph (4) by striking ‘‘$6,746,000,000’’ and
inserting ‘‘$6,747,000,000’’.
SEC. 9010. MOTOR CARRIER SAFETY TECHNICAL CORRECTION.
Section 4011 of the Transportation Equity Act for the 21st
Century is amended by adding at the end the following: Ante, p. 394.
‘‘(h) TECHNICAL AMENDMENTS.—Section 31314 (as amended by
subsection (g) of this section) is amended—
‘‘(1) in subsections (a) and (b) by striking ‘(3), and (5)’
each place it appears and inserting ‘(3), and (4)’; and
‘‘(2) by striking subsection (d).’’.
SEC. 9011. RESTORATIONS TO RESEARCH TITLE.
(a) UNIVERSITY TRANSPORTATION RESEARCH FUNDING.—Section
5001(a)(7) of the Transportation Equity Act for the 21st Century Ante, p. 419.
is amended—
(1) by striking ‘‘$31,150,000’’ each place it appears and
inserting ‘‘$25,650,000’’;
inserting ‘‘$27,250,000’’; and
inserting ‘‘$26,500,000’’.
(b) OBLIGATION CEILING.—Section 5002 of such Act is amended Ante, p. 421.
by striking ‘‘$403,150,000’’ and all that follows through
‘‘$468,000,000’’ and inserting ‘‘$397,650,000 for fiscal year 1998,
$403,650,000 for fiscal year 1999, $422,450,000 for fiscal year 2000,
and $462,500,000’’.
(c) USE OF FUNDS FOR ITS.—Section 5210 of the Transportation
end the following:
‘‘(d) USE OF INNOVATIVE FINANCING.—
‘‘(1) IN GENERAL.—The Secretary may use up to 25 percent
of the funds made available to carry out this subtitle to make
available loans, lines of credit, and loan guarantees for projects
that are eligible for assistance under this subtitle and that
have significant intelligent transportation system elements.
‘‘(2) CONSISTENCY WITH OTHER LAW.—Credit assistance
described in paragraph (1) shall be made available in a manner
consistent with the Transportation Infrastructure Finance and
Innovation Act of 1998.’’.
(d) UNIVERSITY TRANSPORTATION RESEARCH.—Section 5110 of
such Act is amended by adding at the end the following: Ante, p. 441.
‘‘(d) TECHNICAL ADJUSTMENTS.—Section 5505 of title 49, United
amended—
‘‘(1) in subsection (g)(2) by striking ‘section 5506,’ and
inserting ‘section 508 of title 23, United States Code,’;
‘‘(2) in subsection (i)—
‘‘(A) by inserting ‘Subject to section 5338(e):’ after ‘(i)
NUMBER AND AMOUNT OF GRANTS.—’; and
‘‘(B) by striking ‘institutions’ each place it appears

and inserting ‘institutions or groups of institutions’; and
‘‘(3) in subsection ( j)(4)(B) by striking ‘on behalf of’ and
all that follows before the period and inserting ‘on behalf of
a consortium which may also include West Virginia University
Institute of Technology, the College of West Virginia, and Blue-
field State College’.’’.
Ante, p. 446. (e) TECHNICAL CORRECTIONS.—Section 5115 of such Act is
amended—
(1) in subsection (a) by striking ‘‘Director’’ and inserting
‘‘Director of the Bureau of Transportation Statistics’’;
(2) in subsection (b) by striking ‘‘Bureau’’ and inserting
‘‘Bureau of Transportation Statistics,’’; and
(3) in subsection (c) by striking ‘‘paragraph (1)’’ and
inserting ‘‘subsection (a)’’.
(f ) CORRECTIONS TO CERTAIN OKLAHOMA PROJECTS.—Section
Ante, p. 446. 5116 of such Act is amended—
(1) in subsection (e)(2) by striking ‘‘$1,000,000 for fiscal
year 1999, $1,000,000 for fiscal year 2000, and $500,000 for
fiscal year 2001’’ and inserting ‘‘$1,000,000 for fiscal year 1999,
and $500,000 for fiscal year 2002’’; and
(2) in subsection (f )(2) by striking ‘‘$1,000,000 for fiscal
year 1999, $1,000,000 for fiscal year 2000, $1,000,000 for fiscal
year 2001, and $500,000 for fiscal year 2002’’ and inserting
‘‘$1,000,000 for fiscal year 1999, $1,000,000 for fiscal year 2000,
and $500,000 for fiscal year 2001’’.
(g) INTELLIGENT TRANSPORTATION INFRASTRUCTURE REF-
Ante, p. 448. ERENCE.—Section 5117(b)(3)(B)(ii) of such Act is amended by
striking ‘‘local departments of transportation’’ and inserting ‘‘the
Department of Transportation’’.
(h) FUNDAMENTAL PROPERTIES OF ASPHALTS AND MODIFIED
ASPHALTS.—Section 5117(b)(5)(B) of such Act is amended—
(2) by striking ‘‘$3,000,000 per fiscal year’’ and inserting
‘‘$1,000,000 for fiscal year 1998 and $3,000,000 for each of
fiscal years 1999 through 2003’’.
SEC. 9012. AUTOMOBILE SAFETY AND INFORMATION.
(a) REFERENCE.—Section 7104 of the Transportation Equity
Ante, p. 466. Act for the 21st Century is amended by adding at the end the
following:
‘‘(c) CONFORMING AMENDMENT.—Section 30105(a) of title 49,
United States Code (as amended by subsection (a) of this section),
is amended by inserting after ‘Secretary’ the following: ‘for the
National Highway Traffic Safety Administration’.’’.
Ante, p. 485. (b) CLEAN VESSEL ACT FUNDING.—Section 7403 of such Act
is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘Section 4(b)’’;
and
‘‘(b) TECHNICAL AMENDMENT.—Section 4(b)(3)(B) of the 1950
Act (as amended by subsection (a) of this section) is amended
by striking ‘6404(d)’ and inserting ‘7404(d)’.’’.
Ante, p. 486. (c) BOATING INFRASTRUCTURE.—Section 7404(b) of such Act is
amended by striking ‘‘6402’’ and inserting ‘‘7402’’.
SEC. 9013. TECHNICAL CORRECTIONS REGARDING SUBTITLE A OF
TITLE VIII.
(a) AMENDMENT TO OFFSETTING ADJUSTMENT FOR DISCRE-
TIONARY SPENDING LIMIT.—Section 8101(b) of the Transportation
inserting ‘‘$25,144,000,000’’; and
inserting ‘‘$26,009,000,000’’.
(b) AMENDMENTS FOR HIGHWAY CATEGORY.—Section 8101 of
the Transportation Equity Act for the 21st Century is amended
‘‘(f ) TECHNICAL AMENDMENTS.—Section 250(c)(4)(C) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (as
amended by subsection (c) of this Act) is amended—
‘‘(1) by striking ‘Century and’ and inserting ‘Century or’;
‘‘(2) by striking ‘as amended by this section,’ and inserting
‘as amended by the Transportation Equity Act for the 21st
Century,’; and
‘‘(3) by adding at the end the following new flush sentence:
‘Such term also refers to the Washington Metropolitan Transit
Authority account (69–1128–0–1–401) only for fiscal year 1999
only for appropriations provided pursuant to authorizations
contained in section 14 of Public Law 96–184 and Public Law
101–551.’.’’.
(c) TECHNICAL AMENDMENT.—Section 8102 of the Transpor-
tation Equity Act for the 21st Century is amended by inserting Ante, p. 492.
before the period at the end the following: ‘‘or from section 1102
of this Act’’.
SEC. 9014. CORRECTIONS TO VETERANS SUBTITLE.
(a) TOBACCO-RELATED ILLNESSES IN VETERANS.—Section 8202
of the Transportation Equity Act for the 21st Century is amended Ante, p. 492.
to read as follows (and the amendments made by that section
as originally enacted shall be treated for all purposes as not having
been made):
‘‘SEC. 8202. TREATMENT OF TOBACCO-RELATED ILLNESSES OF
VETERANS.
‘‘(a) IN GENERAL.—(1) Chapter 11 of title 38, United States
Code, is amended by inserting after section 1102 the following
new section:
‘§ 1103. Special provisions relating to claims based upon
effects of tobacco products
‘(a) Notwithstanding any other provision of law, a veteran’s
disability or death shall not be considered to have resulted from
personal injury suffered or disease contracted in the line of duty
in the active military, naval, or air service for purposes of this
title on the basis that it resulted from injury or disease attributable
to the use of tobacco products by the veteran during the veteran’s
service.
‘(b) Nothing in subsection (a) shall be construed as precluding
the establishment of service connection for disability or death from
a disease or injury which is otherwise shown to have been incurred
or aggravated in active military, naval, or air service or which
became manifest to the requisite degree of disability during any
applicable presumptive period specified in section 1112 or 1116

of this title.’.
‘‘(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 1102
the following new item:
‘1103. Special provisions relating to claims based upon effects of tobacco products.’.
Applicability. ‘‘(b) EFFECTIVE DATE.—Section 1103 of title 38, United States
Code, as added by subsection (a), shall apply with respect to claims
received by the Secretary of Veterans Affairs after the date of
the enactment of this Act.’’.
(b) GI BILL EDUCATIONAL ASSISTANCE FOR SURVIVORS AND
DEPENDENTS OF VETERANS.—Subtitle B of title VIII of the Transpor-
Ante, p. 492. tation Equity Act for the 21st Century is amended by adding
at the end the following new section:
‘‘SEC. 8210. TWENTY PERCENT INCREASE IN RATES OF SURVIVORS
AND DEPENDENTS EDUCATIONAL ASSISTANCE.
‘‘(a) SURVIVORS AND DEPENDENTS EDUCATIONAL ASSISTANCE.—
Section 3532 of title 38, United States Code, is amended—
‘‘(1) in subsection (a)(1)—
‘‘(A) by striking out ‘$404’ and inserting in lieu thereof
‘$485’;
‘‘(B) by striking out ‘$304’ and inserting in lieu thereof
‘$365’; and
‘‘(C) by striking out ‘$202’ and inserting in lieu thereof
‘$242’;
‘‘(2) in subsection (a)(2), by striking out ‘$404’ and inserting
in lieu thereof ‘$485’;
‘‘(3) in subsection (b), by striking out ‘$404’ and inserting
in lieu thereof ‘$485’; and
‘‘(4) in subsection (c)(2)—
‘‘(A) by striking out ‘$327’ and inserting in lieu thereof
‘$392’;
‘‘(B) by striking out ‘$245’ and inserting in lieu thereof
‘$294’; and
‘‘(C) by striking out ‘$163’ and inserting in lieu thereof
‘$196’.
‘‘(b) CORRESPONDENCE COURSE.—Section 3534(b) of such title
is amended by striking out ‘$404’ and inserting in lieu thereof
‘$485’.
‘‘(c) SPECIAL RESTORATIVE TRAINING.—Section 3542(a) of such
title is amended—
‘‘(1) by striking out ‘$404’ and inserting in lieu thereof
‘$485’;
‘‘(2) by striking out ‘$127’ each place it appears and
inserting in lieu thereof ‘$152’; and
‘‘(3) by striking out ‘$13.46’ and inserting in lieu thereof
‘$16.16’.
‘‘(d) APPRENTICESHIP TRAINING.—Section 3687(b)(2) of such title
is amended—
‘$353’;
‘$264’;
‘$175’; and
‘‘(4) by striking out ‘$73’ and inserting in lieu thereof ‘$88’.
‘‘(e) EFFECTIVE DATE.—The amendments made by this section Applicability.

shall take effect on October 1, 1998, and shall apply with respect
to educational assistance allowances paid for months after Septem-
ber 1998.’’.
SEC. 9015. TECHNICAL CORRECTIONS REGARDING TITLE IX.
(a) HIGHWAY TRUST FUND.—Subsection (f ) of section 9002 of
the Transportation Equity Act for the 21st Century is amended Ante, p. 499.
by adding at the end the following new paragraphs:
‘‘(4) The last sentence of section 9503(c)(1), as amended
by subsection (d), is amended by striking ‘the date of enactment
of the Transportation Equity Act for the 21st Century’ and
inserting ‘the date of the enactment of the TEA 21 Restoration
Act’.
‘‘(5) Paragraph (3) of section 9503(e), as amended by sub-
section (d), is amended by striking ‘the date of enactment
Act’.’’.
(b) BOAT SAFETY ACCOUNT AND SPORT FISH RESTORATION
ACCOUNT.—Section 9005 of the Transportation Equity Act for the
21st Century is amended by adding at the end the following new Ante, p. 504.
subsection:
‘‘(f ) CLERICAL AMENDMENTS.—
‘‘(1) Subparagraph (A) of section 9504(b)(2), as amended
by subsection (b)(1), is amended by striking ‘the date of the
enactment of the Transportation Equity Act for the 21st Cen-
tury’ and inserting ‘the date of the enactment of the TEA
21 Restoration Act’.
‘‘(2) Subparagraph (B) of section 9504(b)(2), as added by
subsection (b)(3), is amended by striking ‘such Act’ and inserting
‘the TEA 21 Restoration Act’.
‘‘(3) Subparagraph (C) of section 9504(b)(2), as amended
by subsection (b)(2) and redesignated by subsection (b)(3), is
amended by striking ‘the date of the enactment of the Transpor-
tation Equity Act for the 21st Century’ and inserting ‘the date
of the enactment of the TEA 21 Restoration Act’.
‘‘(4) Subsection (c) of section 9504, as amended by sub-
section (c)(2), is amended by striking ‘the date of enactment
Act’.’’.
23 USC 101 note. SEC. 9016. EFFECTIVE DATE.
This title and the amendments made by this title shall take
effect simultaneously with the enactment of the Transportation
Equity Act for the 21st Century. For purposes of all Federal laws,
the amendments made by this title shall be treated as being
included in the Transportation Equity Act for the 21st Century
at the time of the enactment of such Act, and the provisions of
such Act (including the amendments made by such Act) (as in
effect on the day before the date of enactment of this Act) that
are amended by this title shall be treated as not being enacted.
Approved July 22, 1998.
LEGISLATIVE HISTORY—H.R. 2676:

HOUSE REPORTS: Nos. 105–364, Pt. 1 (Comm. on Ways and Means) and 105–599
(Comm. of Conference).
SENATE REPORTS: No. 105–174 (Comm. on Finance).
CONGRESSIONAL RECORD:
Vol. 143 (1997): Nov. 5, considered and passed House.
Vol. 144 (1998): May 4–7, considered and passed Senate, amended.
June 25, House agreed to conference report.
July 7–9, Senate considered and agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
July 22, Presidential remarks.
Æ
Liens
Liens Removed
These documents were used to remove liens in Florida
Courts
Please DO NOT use these documents without first
learning how to use them effectively.
Please visit the following site for all the info you will need.
http://www.skyhawkbbs.com/public/default.htm
Brief in Support
Cert of Service State
Complaint
Default
Cert of Service Fed
Motion for Order of Cancellation
Notice of Non-Acceptance
Order of Cancellation
Media Bypass Article
Most of the documents on this site are in Adobe Acrobat Reader format (PDF). If you do not have the
FREE version of Adobe Acrobat Reader installed on your computer, please Click the Adobe icon below.
http://www.eddiekahn.com/REF/Liens.htm (1 of 2) [1/13/2004 8:13:33 PM]

Liens
http://www.eddiekahn.com/REF/Liens.htm (2 of 2) [1/13/2004 8:13:33 PM]

The file http://www.eddiekahn.com/PDF/reference/liens/Brief%20in%20Support.pdf is a secure
document that has been embedded in this document. Double click the pushpin to view
Brief%20in%20Support.pdf.
http://www.eddiekahn.com/PDF/reference/liens/Brief%20in%20Support.pdf [1/13/2004 8:13:34 PM]

The file http://www.eddiekahn.com/PDF/reference/liens/Cert%20of%20Service%20state.pdf is a secure
Cert%20of%20Service%20state.pdf.
http://www.eddiekahn.com/PDF/reference/liens/Cert%20of%20Service%20state.pdf [1/13/2004 8:13:34 PM]

The file http://www.eddiekahn.com/PDF/reference/liens/complaint.pdf is a secure document that has
been embedded in this document. Double click the pushpin to view complaint.pdf.
http://www.eddiekahn.com/PDF/reference/liens/complaint.pdf [1/13/2004 8:13:34 PM]

The file http://www.eddiekahn.com/PDF/reference/liens/default.pdf is a secure document that has been
embedded in this document. Double click the pushpin to view default.pdf.
http://www.eddiekahn.com/PDF/reference/liens/default.pdf [1/13/2004 8:13:34 PM]

The file http://www.eddiekahn.com/PDF/reference/liens/FEDCERTSERVICE.pdf is a secure document
that has been embedded in this document. Double click the pushpin to view FEDCERTSERVICE.pdf.
http://www.eddiekahn.com/PDF/reference/liens/FEDCERTSERVICE.pdf [1/13/2004 8:13:34 PM]

The file http://www.eddiekahn.com/PDF/reference/liens/MOTIONFOR%20CANC.pdf is a secure
MOTIONFOR%20CANC.pdf.
http://www.eddiekahn.com/PDF/reference/liens/MOTIONFOR%20CANC.pdf [1/13/2004 8:13:35 PM]

The file http://www.eddiekahn.com/PDF/reference/liens/NONACCEPT.pdf is a secure document that has
been embedded in this document. Double click the pushpin to view NONACCEPT.pdf.
http://www.eddiekahn.com/PDF/reference/liens/NONACCEPT.pdf [1/13/2004 8:13:35 PM]

The file http://www.eddiekahn.com/PDF/reference/liens/order.pdf is a secure document that has been
embedded in this document. Double click the pushpin to view order.pdf.
http://www.eddiekahn.com/PDF/reference/liens/order.pdf [1/13/2004 8:13:35 PM]

Liens - Are they for Income or Estate

taxes?
Here are documents that were received from a friend regarding notices of lien that are recorded in
the county recorders office against him. However, in reading through the Privacy Act Transcript,
it seems to us that the "1040 tax" identified on the notice of lien is in reality an inheritance tax.
The transcript code 582 on the individual master file identifies that code as representing a regular
lien. However, the 582 code on the privacy transcript is more explicit as to the tax they are trying
to collect. It appears they are looking at my friend as the Executor of an estate. The estate owes an
inheritance tax and the Executor is the one made liable for the tax. My friend has informed me
that he is not an Executor of any estate. All the notice of liens that we have reviewed are written
in the same manner.
icon below.
http://www.eddiekahn.com/REF/liens_income_estate.htm [1/13/2004 8:13:36 PM]

The file http://www.eddiekahn.com/PDF/reference/liensIncomeEstate.pdf is a secure document that has
been embedded in this document. Double click the pushpin to view liensIncomeEstate.pdf.
http://www.eddiekahn.com/PDF/reference/liensIncomeEstate.pdf [1/13/2004 8:13:37 PM]

Missing Amendment (Original XIII

Amendment)
Why isn't this in the current publication of The United States Constitution? As far as we can
determine, it has never been amended, revoked, or repealed (you will notice the XIV Amendment is
listed in current editions of the Constitution as the XIII Amendment!). Possibly the reason could be
that all Attorneys use a term of loyalty (Esquire). Under the conditions of this amendment they would
lose their United Stated citizenship. If you want to get the answers of these questions, please copy this
and send it to your congressman and ask for an explanation.
http://www.eddiekahn.com/REF/missing_amendment_.htm (1 of 4) [1/13/2004 8:13:38 PM]



If you would like to get your own certified copy of this amendment write or call:
Colorado State Archives
1313 Sherman Street
Denver, Co 80203
Research: (303) 866-2390
(800) 305-3442
(303) 866-2055
(303) 866-2358


This is a document that was sent to us by an ARL member. You will notice that it was sent to the
U. S. Department of Commerce by the State, notifying them of this person's birth. The question
is: why would the State take the time and trouble to notify the U. S. Department of Commerce of this
person's birth?
We have been told that the United States went into bankruptcy in 1933 and we are listed as assets
of the bankrupt entity. In other words, your productivity is the asset. You can draw your own
conclusions. However, I might suggest that you submit a Privacy Act request to the Department
of Commerce asking for the Notification of Birth Registration with your name on it.
Click here to see sample Privacy Act request
Click here to see the notification of Birth Registration.
icon below.
http://www.eddiekahn.com/REF/notification_of_birth.htm [1/13/2004 8:13:38 PM]

TO: U.S. Department of Commerce FROM: Your Name
Bureau of the Census Street Address
1401 Constitution Ave. NW City, State, Zip
Washington, DC 20230 SS#
Date: Delivery Confirmation #
Dear Disclosure Officer,
1. This is a request under the Privacy Act, 5 USC 552a and appropriate
regulations.
2. This is my firm promise to pay fees and costs for location, duplication,
and reviewing the documents for information requested below. I am
making this request in the classification of “other requester.” If costs
are expected to exceed $50.00, please send estimate of costs.
reasonably segregable and provide me with indexing, itemization, and
detailed justification concerning the information, which you are not
releasing.
4. I understand the penalties for requesting or obtaining access to

documents or records under false pretenses. I am the person making
this request and my signature appears below.
5. This request pertains to the years 1992 through 2002.
6. Please send to the requester copies, front and back, of any and all
records that have [your name]’s name that are in your possession
and/or control.
_____________________________
[your name]
_____________________________ Appointment Expires________________________

Notary Signature
Stamp/Seal
Quashing a 3rd Party Summons Administrativly
Quashing a 3rd Party Summons

Administratively
Both the Justice Department US Attorney Manual and the Internal Revenue Service Handbook
for Special Agents specifically state, if you object to a 3rd party who holds records about you
giving them to the IRS, you can prevent them from doing so absent a court order.
The documents from those manuals detail

the method to be used.
Click HERE to view the documents.
icon below.
http://www.eddiekahn.com/REF/quashing_a_3rd_party_summons_adm.htm [1/13/2004 8:13:39 PM]

Primer on Summons Enforcement (Tax Resource Manual)
Department of Justice > USAM > Title 6 > Tax Resource Manual > Summons Enforcement
prev | next
E. Third-Party Recordkeeper Summonses

Section 7609 provides that when an IRS summons is issued to any of several specifically defined third
parties, the taxpayer must receive notice of the summons and may, by letter, force the summoned party to
refuse compliance with the summons. The statute also accords the taxpayer a right to institute a
proceeding to quash such a summons and to raise substantive objections to its enforcement.[FN31] These
statutory rights arise, however, only if the summoned records are maintained by the summoned party in
its capacity as a "third-party recordkeeper" as that term is defined in Section 7609(a)(3) and the
Regulations thereunder. A "third-party recordkeeper" is defined by the statute to include only banks and
other financial institutions, consumer reporting agencies, brokers, attorneys, accountants, barter
exchanges, regulated investment companies, and "any person extending credit through the use of credit
cards or similar devices." Section 7609(a)(3)(C).
FN31. The filing of a petition to quash tolls the running of the civil and criminal statutes of
limitations for the period during the proceedings, and appeals therein. Section 7609(e). See
generally Hefti v. Commissioner, 983 F.2d 868 (8th Cir. 1993).
As discussed above, the summons power conferred by Section 7602 must be broadly construed; and
statutory restrictions on that power must be limited to the express Congressional language. United States
v. Euge, 444 U.S. 707, 711 (1980); United States v. First Bank, 737 F.2d 269, 273 (2d Cir. 1984). A
"limited construction" of such restrictions is also "supported by the law's general antipathy to the erection
of the barriers to the ascertainment of truth." De Masters v. Arend, 313 F.2d 79, 87 (9th Cir. 1963)
(discussing the Section 7605(b) limitation to the summons power and citing, for this point, Application of
Magnus, 299 F.2d 335, 337 (2d Cir. 1962), and McMann v. SEC, 87 F.2d 377 (2d Cir. 1937)). Thus,
strict construction of Section 7609's statutory language is mandated in the absence of evidence of express
Congressional purpose to the contrary. First Bank, 737 F.2d at 273.
An examination of Section 7609 legislative history reflects Congress' clear intent in this regard.[FN32]
The limited definition of the term "third-party recordkeeper" was an extremely late amendment to the
Tax Reform Act of 1976, Pub. L. No. 94-455, 90 Stat. 1520, Section 1205. As originally passed in the
House in late 1975, Section 1211 of H.R. 10612, 94th Cong., 1st Sess., proposed the addition of a new
provision to the Code which would have granted a taxpayer a statutory right of intervention in a
summons enforcement proceeding involving a summons issued to a third party for "books relating to the
business or transactions of one or more other persons [e.g., taxpayers] who are identified in the
description of the books which are to be produced * * *." 121 Cong. Rec. 38633 (1975). The original
proposal made no specific reference to the term "third-party recordkeeper" and broadly described the
categories of summonses which would trigger the special notice and interventi on provisions. In
discussing the proposal, the House Ways and Means Committee Report reinforced this broad view of the
provision by stating that it applied "in the case of a third-party summons to a bank, brokerage house,
accountant, or other third-party record keeper * * *." H.R. Rep. No. 94-658, 94th Cong., 1st Sess. at 307
(1976-3 Cum. Bull. (Vol. 2) 695, 999).[FN33]
FN32. In enacting Section 7609, Congress did not intend to broaden the substantive defenses a
http://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title6/tax0055e.htm (1 of 4) [7/2/2001 4:20:50 PM]

Real Levy Notice
The Real Levy Document

The IRS continually sends out notices of Intent to Levy 668-A(c)(DO), but
they never give anyone a real 668-B document. This 668-B document is a
Levy document. You should be able to do a Privacy Act request to the IRS if
they have seized property of any type, and demand a copy of this 668-B
document with the details of your seizure on it. You can download this
document and send it as an exhibit attached to your Privacy Act request, so
there is no doubt as to what document you are requesting.
icon below.
http://www.eddiekahn.com/REF/levy_notice.htm [1/13/2004 8:13:40 PM]

The file http://www.eddiekahn.com/PDF/reference/levy668/668-A(c)%20(DO)Notice%20of%20Levy.pdf
is a secure document that has been embedded in this document. Double click the pushpin to view
668-A(c)%20(DO)Notice%20of%20Levy.pdf.
http://www.eddiekahn.com/PDF/reference/levy668/668-A(c)%20(DO)Notice%20of%20Levy.pdf [1/13/2004 8:13:40 PM]

Reference Documents
Reference Documents
DOJ Manual - This part of the DOJ Manual indicates the code section and the agency with
investigative jurisdiction to investigate a possible crime committed concerning that code section.
Of particular interest to most people is Title 26 (Internal Revenue Code Sections). If you will notice
the vast majority of the enforceable sections the only agency with investigative jurisdiction is
Alcohol, Tobacco, and Firearms.
Territorial Jurisdiction - Territorial Jurisdiction is an issue that very few people raise in either an
administrative or court situation. However people that do raise the issue properly have been
successful in either winning their case or having it dismissed for lack of jurisdiction.
Delegation Orders - All agents and agencies of Local, State, and Federal governments are required
to have Delegated Authority to proceed against an individual citizen of America.
Handbook for Federal Grand Jurors - This is the shadowy group of people that hardly anyone
knows anything about.

Missing Amendment - Why isn't this in the current publication of The United States Constitution?
As far as we can determine, it has never been amended, revoked, or repealed (you will notice the
XIV Amendment is listed in current editions of the Constitution as the XIII Amendment!).
Expatriation Act of 1868 - It is important for someone who is interested in renouncing their United
States citizenship (14th amendment) to read this Act.
Defending a Trust - Only a the trustee of a trust may defend the trust against attack from either
individuals or government. To do that successfully the trustee must know that they have certain
rights of Discovery prior to releasing any documents or giving any testimony.
CP515 Letter and Response - The first letter that the IRS sends if you do not file a tax return. The
rest of the letters are an appropriate response to the IRS CP515 letter.
http://www.eddiekahn.com/REF/document-ref.htm (1 of 3) [1/13/2004 8:13:41 PM]

Reference Documents
23C Assessment - The legal document that permits collection activity. It is a summary record of
assessments. Since it authorizes collection activities against you, you have a right to get a copy of it
and all of the supporting records that identify you as one of the taxpayers assessed.
Implied Notice of Misapplication of Internal Revenue Code Section 6331 and 6201 - This document
shows that unless a person is involved in alcohol, tobacco or cotton they can not be levied against
or assessed a tax. (Adobe Acrobat format)
IRS Restructuring and Reform Act of 1998 - A bill to eliminate abuses of IRS agents, and hold
them accountable for their actions. This document is 184 pages. Please be patient. (Adobe Acrobat
format)
Liens Removed by Florida State Judge! - We have been told 11 Liens have been removed using
these documents!!
Order Of Authority - A Must See!!! (Adobe Acrobat format)
63 Million Non-filers - A letter from the Commissioner. (Adobe Acrobat format)
The Communist Manifesto - Written by Karl Marx many years ago. He stated at the time that if
he could get a country to implement 5 of the 10 planks, the Communists would be able to take over
the country without firing a shot. The red planks depict what is currently implemented in the
USA.
This Has Been Going On Since 1913 - This is where money comes from.
Quashing a 3rd Party Summons Administratively - Both the Justice Department US Attorney
Manual and the Internal Revenue Service Handbook for Special Agents specifically state, if you
object to a 3rd party who holds records about you giving them to the IRS, you can prevent them
from doing so absent a court order.
Bribes at the IRS - "Hidden eavesdropping devices placed in Chicago and south suburban Internal
Revenue Service offices helped snare eight IRS employees allegedly taking bribes to give taxpayers
a break..."
Can an IRS agent enforce a 2039 Summons for books and records? - Unless the Agent has an
enforcement Pocket Commission and the agent is collecting taxes on gasoline pursuant to IRC §
6420 (e)(2), § 6421 (g)(2), and § 6427 (j)(2), the answer would be NO!
Claudie Baker Letter - This is a letter form the Director of the Philadelphia Internal Revenue
Service Center. It states "Our system of taxation is dependent on taxpayers belief that the laws
they follow apply to everyone..."
1913 Congressional Record Debate - The 16th amendment prompted this debate. They discussed
what will NOT be taxed.
Fair Debt Collection Practices Act - It seems that the IRS Restructuring and Reform Act of 1998

Reference Documents
(RRA 98) § 3466 requires the IRS to comply with certain provisions of the FDCPA and to be at
least as considerate to taxpayers as private creditors are to their customers.
Importance of Court Decisions - The IRS' own manuals (see bottom of document) state they are
bound by Supreme Court decisions. It also states that Tax Court, District Court, Claims Court
decisions only apply to that person.
IRS is NOT a Government Agency - The first document signed by a congressional member states
"...'Internal Revenue Service' was not established by law."
The Real Levy Document - The IRS continually sends out notices of Intent to Levy 668-A(c)(DO),
but they never give anyone a real 668-B document.
Importance of Pocket Commission - Eddie was told by the Agent that no Examination Agent or
Collection Agent has an enforcement pocket commission which is mandatory if they are to
summons records, lien, levy or seize property.
Tax Assessment - The IRS uses 26 USC § 6201 as their authority to assess you a tax. However,
when you read that section it is pretty obvious that it does not apply UNLESS you are subject to a
stamp tax!
Unlawful Speed - An Attorney that we know very well was recently given a speeding ticket, here in
Florida...The case was dismissed.
What happened to the 56 men who signed The Declaration of Independence?
Income Tax is 100% voluntary! - Dwight Avis, former head of the IRS says so!
CFR26 1.1-1 - Regulation identifying income tax on individuals.
Due Process Hearing Transcripts - Transcripts from actual Collection Due Process Hearings.
1.861-8 Letter - Letter summarizing Federal Regulation which determines whether the
"gross income" of an individual is derived from a taxable source.
icon below.

DOJ Manual
DOJ Manual
This part of the DOJ Manual indicates the code section and the agency with investigative jurisdiction to
investigate a possible crime committed concerning that code section. Of particular interest to most
people is Title 26 (Internal Revenue Code Sections). If you will notice the vast majority of the
enforceable sections the only agency with investigative jurisdiction is Alcohol, Tobacco, and Firearms.
However there are some sections that only the FBI has the authority to investigate. Only seven sections
the IRS has authority to investigate.
People who are being charged with Failure to File or Tax Evasion should pay particular attention to the
sections 7201-7209 because the Department of Justice says that no agency has the investigative authority
for those sections. 7201 is Tax Evasion and 7203 is Failure to File. Since the Criminal Investigation
Division of the IRS has no authority to investigate those code sections you can not legally be prosecuted
for those crimes.
Click here to view the DOJ Manual
icon below.
http://www.eddiekahn.com/REF/DOJ_Manual.htm [1/13/2004 8:13:41 PM]

USAM 9-4.000. Statutes Assigned by Citation Page 1 of 72
Department of Justice > USAM > Title 9

prev | next | Criminal Resource Manual
9-4.000
STATUTES ASSIGNED
BY CITATION
9-4.010 Introduction
9-4.100 Statutory Responsibilities General to All Criminal Division Sections and Offices
9-4.112 2 U.S.C.: The Congress
9-4.114 4 U.S.C.: Flag and Seal
9-4.115 5 U.S.C.: Executive Departments
9-4.117 7 U.S.C.: Agriculture
9-4.118 8 U.S.C.: Aliens and Nationality
9-4.121 10 U.S.C.: Armed Forces
9-4.123 12 U.S.C.: Banks and Banking
9-4.124 13 U.S.C.: Census
9-4.125 14 U.S.C.: Coast Guard
9-4.126 15 U.S.C.: Commerce and Trade
9-4.127 16 U.S.C.: Conservation
9-4.128 17 U.S.C.: Copyrights
9-4.129 18 U.S.C. 1-2712 Crimes
9-4.130 18 U.S.C. 3000-: Procedure
9-4.131 18 U.S.C.: Appendixes
9-4.134 21 U.S.C.: Food and Drugs
9-4.135 22 U.S.C.: Foreign Relations and Intercourse
9-4.137 24 U.S.C.: Hospitals and Asylums
9-4.138 25 U.S.C.: Indians
9-4.139 26 U.S.C.: Internal Revenue Code
9-4.141 27 U.S.C.: Intoxicating Liquor
9-4.142 28 U.S.C.: Judiciary and Judicial Procedure
9-4.143 28 U.S.C.: Appendix
9-4.144 29 U.S.C.: Labor
9-4.145 30 U.S.C.: Mineral Lands and Mining
9-4.146 31 U.S.C.: Money and Finance
9-4.147 33 U.S.C.: Navigation and Navigable Waters
9-4.151 35 U.S.C.: Patents
9-4.152 36 U.S.C.: Patriotic Societies and Observances
9-4.154 38 U.S.C.: Veterans' Benefits
9-4.155 39 U.S.C.: Postal Service
9-4.156 40 U.S.C.: Public Buildings, Property, and Works
9-4.157 40 U S.C.: Appendix
9-4.158 41 U.S.C.: Public Contracts
9-4.159 42 U.S.C.: The Public Health and Welfare
9-4.161 43 U.S.C.: Public Lands
9-4.163 45 U.S.C.: Railroads
http://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title9/4mcrm.htm 10/15/2003
NDDS (202) 514-0917 State
§2712(f) CTS (202) 514-0849 Treasury (Customs);

FBI
§§2774-2777 CES (202) 514-1187 Treasury (Customs);
§2778 CES** (202) 514-1187 Treasury (Customs);

State
§4199 PIN (202) 514-1412 FBI
§4202 PIN (202) 514-1412 FBI
§§4217-4218 PIN (202) 514-1412 FBI
§4221 FRAUD (202) 514-7023 FBI
9-4.137 24 U.S.C.: Hospitals and Asylums

STATUTE CRIMINAL TELEPHONE # AGENCY WITH
DIVISION INVESTIGATIVE
SECTION JURISDICTION
§154 OEO (202) 514-6809 FBI
9-4.138 25 U.S.C.: Indians

§202 OEO (202) 514-6809 FBI
§251 OEO (202) 514-6809 Interior
§399 OEO (202) 514-6809 FBI
§450d FRAUD (202) 514-7023 FBI
9-4.139 26 U.S.C.: Internal Revenue Code

§3121(b)17 CES (202) 514-1187 Treasury
§§4181-4182 DSS (202) 514-0849 Treasury (ATF)
§§4401-4405 OCRS (202) 514-3595 Treasury; I.R.S.
§§5001-5687 OCRS (202) 514-3595 Treasury (ATF)
Except
§§5607-5608 AFMLS (202) 514-1263 Treasury (ATF)
(forfeiture only)
§5615 AFMLS (202) 514-1263 Treasury (ATF)
§5661(a) AFMLS (202) 514-1263 Treasury (ATF)

(forfeiture only)

(forfeiture only)
§5681(c) AFMLS (202) 514-1263 Treasury (ATF)

(forfeiture only)

(forfeiture only)
§5685(c) AFMLS (202) 514-1263 Treasury (ATF)

(forfeiture only)
§5691 OCRS (202) 514-3595 Treasury (ATF)
§5723(c)-(d) FRAUD (202) 514-7023 Treasury (ATF)
§5801 DSS (202) 514-0849
§5802 DSS (202) 514-0849 Treasury (ATF)
§5803 DSS (202) 514-0849
§5804 DSS (202) 514-0849
§§5811-5812 DSS (202) 514-0849 Treasury (ATF)
§§5821-5822 DSS (202) 514-0849 Treasury (ATF)
§§5841-5849 DSS (202) 514-0849 Treasury (ATF)
§§5851-5854 DSS (202) 514-0849 Treasury (ATF)
§5861 DSS (202) 514-0849 Treasury (ATF)
§5871 DSS (202) 514-0849 Treasury (ATF)
§5872(a) AFMLS (202) 514-1263 Treasury (ATF)
§6050I AFMLS (202) 514-1263 Treasury; I.R.S.
§6103 OEO** (202) 514-6809 All DOJ Components

Customs
(statutes administered Secret Service
by Criminal Division)
§§7201-7209 All None
§7212 OEO (202) 514-6809 FBI
§7213 PIN* (202) 514-1412 Treasury; I.R.S.
§7214 PIN (202) 514-1412 FBI
§7262 OCRS (202) 514-3595 Treasury; I.R.S.
§7272 FRAUD (202) 514-7023 Treasury; I.R.S.
§7301-7303 AFMLS (202) 514-1263 Treasury (ATF)
§9012 PIN (202) 514-1412 FBI; Federal

Election Commission
§9042 PIN (202) 514-1412 FBI; Federal

Election Commission
9-4.141 27 U.S.C.: Intoxicating Liquor

§205-207 OCRS (202) 514-3595 Treasury (ATF)
Except

(forfeiture only)
9-4.142 28 U.S.C.: Judiciary and Judicial Procedure

§455 All None
§524(c) AFMLS (202) 514-1263 Related agency;

D.E.A.; FBI; I.N.S.;
DOJ Manual
Territorial Jurisdiction
Territorial Jurisdiction is an issue that very few people raise in either an administrative or court situation.
However people that do raise the issue properly have been successful in either winning their case or
having it dismissed for lack of jurisdiction. You can read the email and Statement of Facts and Beliefs to
understand better what we are saying.
Click here to view the Territorial Jurisdiction file
icon below.
http://www.eddiekahn.com/REF/Territorial_Jurisdiction.htm [1/13/2004 8:13:43 PM]

The file http://www.eddiekahn.com/PDF/reference/Territorial_Jurisdiction.pdf is a secure document that
has been embedded in this document. Double click the pushpin to view Territorial_Jurisdiction.pdf.
http://www.eddiekahn.com/PDF/reference/Territorial_Jurisdiction.pdf [1/13/2004 8:13:48 PM]

DOJ Manual
Delegation Orders
All agents and agencies of Local, State, and Federal governments are required to have Delegated
Authority to proceed against an individual citizen of America. The Federal Delegation Orders must be
signed by the appropriate person and published in the Federal Register if the order is applicable to the
citizens of the 50 states. You can see that the IRS says that Delegation Order 150-10 gives the
Commissioner of Internal Revenue the authority to administer and enforce Internal Revenue laws.
However 150-10 has not been signed and has not been published in the Federal Register. Consequently
it has no force and effect on the citizens of the 50 states.
If you receive a Notice of Deficiency from the Internal Revenue Service you will notice Delegation
Order DIR-SAC 58 only authorizes the Chiefs to do a Notice of Deficiency on chapters 12, 40, 44, 45, 71
of the Internal Revenue Code. However, as you can see those chapters have nothing to do with the
individual income tax. So what you would want to do is to take a copy of the Delegation Order to your
local IRS office and ask them which particular chapter is applicable to you.
Click here to view the Delegation Orders
icon below.
http://www.eddiekahn.com/REF/Delegation_Orders.htm [1/13/2004 8:13:48 PM]

The file http://www.eddiekahn.com/PDF/reference/Delagation_Orders.pdf is a secure document that has
been embedded in this document. Double click the pushpin to view Delagation_Orders.pdf.
http://www.eddiekahn.com/PDF/reference/Delagation_Orders.pdf [1/13/2004 8:13:50 PM]

Handbook for Federal Grand Jurors
Handbook for Federal Grand Jurors

This is the shadowy group of people that hardly anyone knows anything about. Yet, they have the
ability to destroy many people's lives. If you are ever indicted for a Federal crime, these people are
the ones that would have indicted you based on information they received from a U.S. Attorney.
The information contained in this handbook explains what they can do , what they can't do, what
the US Attorney can and can not do and what you can and can not do.
icon below.
http://www.eddiekahn.com/REF/handbook_for_federal_grand_juror.htm [1/13/2004 8:13:50 PM]

«DateResponseSent»

Attention: District Director RE: «ClientName»
«RecipientAddress1» SSN/EIN: «ClientSSN/TIN»
«RecipientAddress2» TAX «YEARS»
«RecipientCityStZip»
IMPLIED LEGAL NOTICE:
MISAPPLICATION OF TITLE 26 USC §§ 6201 and 6331,

SIGNING OF FALSE DOCUMENTS AND MAIL FRAUD
H
I have Power of Attorney (POA) to resolve all federal tax matters for «ClientName».
SO
This letter will serve as Implied Notice to District Director and «TargetAgentTitle»,
«TargetAgentCity», that collection action being brought against «ClientName» is unauthorized by
Statute and in error. The Internal Revenue Service’s Notice of Levy dated «Date Of IRS Letter»,
relied on Sections 6201 and 6331 of the Internal Revenue Code as the reference for legal evidence of
authority of law to assess and levy my client for the collection of an alleged income tax. This alleged
P
authority under Title 26 of the United States Code (USC) is hereby refuted and rebutted. Therefore,
legal presumption of evidence of law is removed. It would appear that you, «TargetAgentTitle»,
«TargetAgentCity», are misapplying Title 26 USC §§ 6201 and 6331, misusing the authority of these
sections for collection action against «ClientName», signing false Documents and using the U.S. Mail
Service to effect an illegal seizure of property.
6D
The laws, which apply to the general public of the 50 Union States, are referred to as the Statutes at
Large. These statutes are clear as to the taxable activities and to those liable for these activities as
shown by the Statutes at Large. There are numerous Federal Court decisions in affirmation. Several
are shown below.
“The official source to find United States law is the Statutes at Large and the United States
Code is only prima facie evidence of such laws. Royer’s Inc. v. United States,265 F2d
615, 59-1 (1959, CA3 Pa).”
“Unless Congress affirmatively enacts title of United States Code into law, that title is
only “prima facie” evidence of the law.” Preston v. Heckler, 734 F2d 1359, (1984,
CA9 Alaska).
“…that the Code establishes “prima facie” the laws of the United States, the very meaning
of “prima facie” being that the Code cannot prevail over the Statutes at Large when the two
are inconsistent.” Stephan v. United States, 319 U.S. 423 (1943); United States v. Welden,
377 U.S. 95 (1964).
“The Code establishes prima facie what the laws of United States are but to the extent that
provisions of Code are inconsistent with Statutes at Large, The latter will prevail.” Best
Food, Inc. v. United States, 147 F Supp 749 (1956).
“Internal Revenue Code construction to Statutes at Large must be made by individual

section and subsection since each section and subsection is derived from their own set of
Statutes at Large pamphlet, Joint Committee in Taxation, ‘Derivations of Code Sections of
the Internal Revenue Codes of 1939 and 1954 (JCS-1-92), January 21, 1992, U.S.
Government Printing Office’. ”
As can be easily understood by the above cases, the Statutes at Large prevail over Title 26 of the
United States Code. For your total comprehension, perhaps a review of the following is in order.
1. Assessment Authority - Assessment authority rests in Title 26 USC § 6201. Legal presumption of
lawful authority of Section 6201 used by the IRS, as applied to my client(s), is hereby refuted and
rebutted for the collection of income tax.
H
Section 6201 of the Internal Revenue code is derived from section 3182 of Revised Statutes of 1874.
The types of taxes authorized by Congress to be assessed are described in crystal clarity in Statutes at
Large enacted on Dec. 24, 1872, chap. 13, sec. 2, vol. 17, page 402 which describes authorized
SO
assessment of taxes by the Secretary and apply only to tobacco and distilled spirits. The intent of
Congress has not changed, as there has been no amendment to the Statute at Large to date. My
client(s), «ClientName», Was/were not involved in any trade or business having to do with tobacco or
distilled spirits for the years in question.
P
2. Levy by Distraint – Authority to levy by distraint rests in Title 26 USC § 6331(a). Legal
presumption of lawful authority of IRC 6331 used by the IRS is hereby refuted and rebutted as it
applies to my client for the collection of income tax for the following reasons.
Section 6331(a) was derived from the 1954 code, which was derived from Sections 3310, 3660, 3690,
6D
3692 and 3700 of the 1939 Code. (Joint Committee on Taxation, Derivations of Code Sections of the
1939 and 1954, 1992, U.S. government)
Section 3690 is the single identifying section on the species of tax that can be collected by distraint and
was derived from Revised Statutes of 1874 section 3187 and is titled “Taxes collectible by distraint”.
The actual Statute at Large enacted by Congress, which conclusively reveals Congressional intent as to
taxes authorized to be collected by levy and distraint was enacted on July 13, 1866 and refers with
great specificity only to taxes on cotton and distilled spirits. (See Chapter 184, Section 9, vol. 14,
pages 98, and 106 of the Act attached). The Statute at Large has not been amended to this date,
therefore the original intent of Congress has not changed. My client, «ClientName», was/were not
involved in cotton or distilled spirits for the years in question.
The above Statutes rest in complete harmony with the official Code of Federal Regulations Index that
clearly shows the implementing regulations for Title 26. The implementing regulation for Title 26 §§
6201 and 6331 is Title 27 Part 70, which is a regulation promulgated and administered by the Bureau
of Alcohol, Tobacco, and Firearms and deals exclusively with excise taxes on excise taxable events,
not income taxes. This agency collects stamp taxes, which is the species of tax applicable to tobacco,
cotton and distilled spirits. According to 1 CFR 1 § 21.21 each agency shall publish its own
regulations and may not cross-reference to another agency unless it meets the exceptions as published
ImpNotNotofLevy668AWAgntChfSPF 2
in the Federal Register. The Internal Revenue Service has promulgated no implementing regulations
for sections 6201 and 6331, therefore no statutory authority exists to assess or levy my client(s).
Consequently, since there exists no statutory authority for the Internal Revenue Service to assess or
levy my client«ApostSApost» property, you District Director and «TargetAgentTitle»,
«TargetAgentCity», are acting without any lawful authority. The legal obligation and duty now rests
with you to demonstrate to me any documented evidence to the contrary. Absent that evidence, you
are in violation of my client's Constitutional right to due process of law.
Therefore, I demand you withdraw any and all Notice’s of Levy from my client's records, and from
wherever else they may be recorded, send a Release of Levy to all who received a Notice of Levy and
cease all collection action against «ClientName».
I regard any collection action against my client(s) as exaction. This is defined by Internal Revenue
regulation 26 CFR 601.106(1) Rule 1:
An exaction by the U.S. Government, which is not based upon law, statutory or
H
otherwise, is a taking of property without due process of law, in violation of the Fifth
Amendment of the United States Constitution. Accordingly, an appeals
representative in his or her conclusions of fact or application of the law shall hew to
SO
the law and the recognized standards of legal construction.
Should collection action continue on my client(s) or if you refuse to respond to this Implied Notice
within twenty (20) days from receipt of this letter, I will file a complaint with the Treasury Inspector
General for Tax Administration in Washington, D.C. and ask that you be terminated for misconduct as
P
per Section 1203 of the Restructuring and Reform Act of 1998.
A copy of this Notice may be sent to the appropriate Congressmen. We will ask them to look into this
misapplication of 26 USC §§ 6201 and 6331 regarding «ClientName». I will also ask the
Congressmen to contact your office and inquire as to whether the Restructuring and Reform Act of
6D
1998 is being administered to the letter and spirit of the law, according to the mandate of Congress.
However, if there is any section within the Statutes at Large that rebuts the evidence I have presented,
please forward same to me at once. Upon receipt of a proven rebuttal of the aforementioned Statutes at
Large, I will withdraw my objection.
Best regards,
_______________________________________
Your Signature
Cc: Congressmen
«ClientName»
«TargetAgentTitle», «TargetAgentCity»
ImpNotNotofLevy668AWAgntChfSPF 3
Order of Authority
Free Country Monarchy/Communism
Our GOD Almighty
And Son Jesus Christ King/Communist Party
Creator of man. Source of all rights.
The Bible Supreme Law Of

The Universe His/Their Laws
GOD's covenant with man.
We, The People – The Body of Christ

Sovereign Free Men – creator And Master Party Of Government Government
By Constitution For The United States Of America. Source Of All
Government Rights.
The Constitution Supreme Law Of

The Land
Executive Legislative Judicial
The People's Chain (Control) Of Our Government
Law Enforcement Law Making Law Application
Peoples Enforcement Controls

Electoral Vote Grand Jury Petit Jury
We, The People/ Corporations
Government Servant Of
We, The people
Sole Purpose Is Protection Of Individual Rights.
Power And Authority Enumerated In And Restricted By
Constitution
The Separate And Distinct Function Delegated To Governmental
Representatives
Executive Legislative Judicial

Law Enforcement Law Making Law Application
"Persons" Subject To Government Law And Regulation
Corporations (Government Created Persons),

And Sovereigns (Freemen) Who Exchange Their Birth Rights For
Government Privileges And Become Servants Controlled By
Government Rules And Regulations.
With GOD, all things are possible.
Look into the perfect law of liberty Obey them that rule over you,
James 1:25 Hebrew 13:17
The law of the LORD is perfect We ought to obey GOD rather
Palms 19:7 than man
Acts 5:29
Render…Unto Caesar, Caesars; unto GOD, GOD's Matt 22:21
and unto self, the remainder.
(Note: There Is No Caesar In This Nation).
This has been happening since 1913
Would you sell a...

This has been happening since 1913!
Feel free to print and post!
http://www.eddiekahn.com/REF/WouldU.htm [1/13/2004 8:13:53 PM]

Would You Sell A
$ 1.00 Bill for 2.7 cents each
$ 1681.00 Value = 19 cents cost?
=
?
The United States Government has been doing this since 1913.
Then they borrow the $1681.00 back at full price, plus interest
from the Federal Reserve Banks! The Compound Interest on our
own currency thus borrowed has created nearly all of our $5
TRILLION DEBT.
The law itself does not required individuals to file a Form 1040

This is a letter from the Director of the Philadelphia Internal Revenue Service Center. It states
"Our system of taxation is dependent on taxpayers belief that the laws they follow apply to
everyone..."
This letter also states "The law itself does not require individuals to file a Form 1040."
Click here to read the letter for yourself.
icon below.
http://www.eddiekahn.com/REF/ClaudieBaker.htm [1/13/2004 8:13:53 PM]

The IRS Not a Government Agency
IRS is Not a Government Agency

The first document signed by a congressional member states "...'Internal Revenue Service' was
not established by law." The second document from the Department of the Treasury states the U.S.
Attorney General's Office has no authority to defend IRS agents in a civil or criminal matter. The
third document from the U.S. Department of Justice also states U.S. Attorney General's Office has
no authority to defend IRS agents in a civil or criminal matter. The last document from IRS
Director of Customer Service Center contradicts the Congress man, Dept. of Treasury and the
Dept. of Justice.
Click here to see the documents for yourself.
icon below.
http://www.eddiekahn.com/REF/IRSNotGov.htm [1/13/2004 8:13:54 PM]

Tax Assessment
Tax Assessment
The IRS uses 26 USC § 6201 as their authority to assess you a tax. However,
when you read that section it is pretty obvious that it does not apply
UNLESS you are subject to a stamp tax! Read it carefully.
Then, ask your friendly IRS agent to explain to you which particular Stamp
Tax you have not paid and what product your stamp is supposed to be put
on. I'm sure he/she will try to explain his/her way out of this. Stay on point
and ask if there is another Internal Revenue section that allows the Secretary
to assess a Subtitle A (income) tax rather than a Subtitle E (stamp) tax.
REMEMBER: Subtitle A taxes are collected by Internal Revenue Agents

and Subtitle E taxes are collected by Alcohol Tobacco Firearms Agents.
icon below.
http://www.eddiekahn.com/REF/tax_assessment.htm [1/13/2004 8:13:54 PM]

INTERNAL REVENUE CODE
BROKEN DOWN ACCORDING TO SUBTITLE
Tax or Topic Subtitle Chapters Sections
Income Taxes A 1 to 6 1
Estate & Gift Taxes B 11 to 13 2001
Employment Taxes C 21 to 25 3101
Miscellaneous Excises D 31 to 47 4041
Alcohol, Tabacco & Certain Other Excises E 51 to 54 5001
Procedure and Administration F 61 to 80 6001
Joint Committee on Taxation G 91 to 92 8001
Financing Presidential Election Campaigns H 95 to 96 9001
Trust Fund Code I 98 9500
What Happened to Them?

Have you ever wondered what happened to the 56 men who signed
The Declaration of Independence?
Five signers were captured by the British as traitors and tortured before
they died.
Twelve had their homes ransacked and burned
Two lost their sons serving in the Revolutionary Army, another had two
sons captured.
Nine of the 56 fought and died from wounds or hardships of the
Revolutionary War.
They signed and they pledged their lives, their fortunes, and their sacred
honor.
What kind of Men were they?

Twenty-four were lawyers and jurists. Eleven were merchants, nine were farmers and large plantation owners; men of means, well
educated. But they signed the Declaration of Independence knowing full well that the penalty would be death if they were captured.
Carter Braxton of Virginia, a wealthy planter and trader, saw his ships swept from the seas by the British Navy. He sold his home and
properties to pay his debts, and died in rags.
Thomas McKeam was so hounded by the British that he was forced to move his family almost constantly. He served in the Congress
without pay, and his family was kept in hiding. His possessions were taken from him, and poverty was his reward.
Vandals or soldiers looted the properties of Dillery, Hall, Clymer, Walton, Gwinnett, Heyward, Ruttedge, and Middleton.
At the battle of Yorktown, Thomas Nelson, Jr., noted that the British General Cornwallis had taken over the Nelson home for his
headquarters. He quietly urged General George Washington to open fire. The home was destroyed, and Nelson died bankrupt.
Francis Lewis had his home and properties destroyed. The enemy jailed his wife, and she died within a few months.
http://www.eddiekahn.com/what_happened_to_them.htm (1 of 4) [1/13/2004 8:13:57 PM]

John Hart was driven from his wife's bedside as she was dying. Their 13 children fled for their lives. His fields and his gristmill were
laid to waste. For more than a year, he lived in forests and caves, returning home to find his wife dead and his children vanished. A
few weeks later, he died from exhaustion and a broken heart.
Norris and Livingston suffered similar fates.
Such were the stories and sacrifices of the American Revolution. These were not wild-eyed, rabble-rousing ruffians. They were
soft-spoken men of means and education. They had security, but they valued liberty more.
Standing talk straight, and unwavering, they pledged: "For the support of this declaration, with firm reliance on the protection of the
divine providence, we mutually pledge to each other, our lives, our fortunes, and our sacred honor."
They gave you and me a free and independent America. The history books never told you a lot about what happened in the
Revolutionary War. We didn't fight just the British. We were British subjects at that time and we fought our own government!
Although some of these men suffered and died for their defense of liberty (as America's political prisoners do today) others went on to
become respected leaders of society. In particular, Thomas Jefferson, the principal author of The Declaration of Independence, became
the third President of the United States.
Some of us take these liberties so much for granted, but we shouldn't.
It's time we get the word out that patriotism is NOT a sin, and the Fourth of July has more to it than beer, picnics, and baseball games.
When was the Last time The Declaration of Independence was read on the 4th of July? When was the last time you read The
Declaration of Independence? So, take a few minutes while enjoying your 4th of July Holiday and silently thank these patriots. It's not
much to ask for the price they paid. Remember: Freedom is never free!
The Declaration of Independence

The Declaration of Independence of the Thirteen Colonies In CONGRESS, July 4, 1776
The unanimous Declaration of the thirteen United States of America,
When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them
with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's
God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the
separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain inalienable
Rights, that among these are Life, Liberty, and the pursuit of Happiness. That to secure these rights, Governments are instituted
among Men, deriving their just powers from the consent of the governed. That whenever any Form of Government becomes
destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on
such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.
Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly
all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing
the forms to which they are accustomed.
But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute
Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.
Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former
Systems of Government. The history of the present King of Great Britain [George III] is a history of repeated injuries and usurpations,
all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid
world.
He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass
Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained, and when so
suspended, he has utterly neglected to attend to them.
He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of
Representation in the Legislature, a right inestimable to them and formidable to tyrants only.
He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public Records, for
the sole purpose of fatiguing them into compliance with his measures.
He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.
He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the Legislative powers, incapable of

Annihilation, have returned to the People at large for their exercise; the State remaining in the meantime exposed to all the dangers of
invasion from without, and convulsions within.
He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners;
refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.
He has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary powers.
He has made Judges dependent on his Will alone, for the tenure of their offices, and the amount and payment of their salaries.
He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people, and eat out their substance.
He has kept among us, in times of peace, Standing Armies, without the consent of our legislatures.
He has affected to render the Military independent of and superior to the Civil power.
He has combined with others to subject us to a jurisdiction foreign to our constitution and unacknowledged by our laws; giving his
Assent to their Acts of pretended Legislation:
● For quartering large bodies of armed troops among us:
● For protecting them by a mock Trial from punishment for any Murders which they should commit on the Inhabitants of these
States:
● For cutting off our Trade with all parts of the world:
● For imposing Taxes on us without our Consent:
● For depriving us in many cases of the benefits of Trial by Jury:
● For transporting us beyond Seas to be tried for pretended offences:
● For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and
enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these
Colonies:
● For taking away our Charters, abolishing our most valuable Laws and altering fundamentally the Forms of our Governments:
● For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever. He
has abdicated Government here by declaring us out of his Protection and waging War against us.
He has plundered our seas, ravaged our Coasts, burnt our towns, and destroyed the lives of our people.
He is at this time transporting large Armies of foreign Mercenaries to complete the works of death, desolation and tyranny, already
begun with circumstances of cruelty and perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a
civilized nation.
He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners
of their friends and Brethren, or to fall themselves by their Hands.
He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless
Indian Savages, whose known rule of warfare is an undistinguished destruction of all ages, sexes and conditions.
In every stage of these Oppressions We have Petitioned for Redress in the most humble terms. Our repeated Petitions have been
answered only by repeated injury. A Prince, whose character is thus marked by every act which may define a Tyrant, is unfit to be the
ruler of a free people.
Nor have We been wanting in attentions to our British brethren.
● We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us.
● We have reminded them of the circumstances of our emigration and settlement here.
● We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to
disavow these usurpations, which would inevitably interrupt our connections and correspondence.
They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces
our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.
We, therefore, the Representatives of the United States of America, in General Congress, Assembled, appealing to the Supreme Judge
of the world for the rectitude of our intentions, do, in the Name, and by the authority of the good People of these Colonies, solemnly
publish and declare.

That these United Colonies are, and of Right ought to be Free and Independent States; that they are Absolved from all Allegiance to the
British Crown,
and that all political connection between them and the State of Great Britain
is and ought to be totally dissolved;
and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce,
and to do all other Acts and Things which Independent States may of right do. And for the support of this Declaration, with a firm
reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.
The signers of the Declaration represented the new states as follows:

New Hampshire:
Josiah Bartlett, William Whipple, Matthew Thornton
Massachusetts:
John Hancock, Samual Adams, John Adams, Robert Treat Paine, Elbridge Gerry
Rhode Island:
Stephen Hopkins, William Ellery
Connecticut:
Roger Sherman, Samuel Huntington, William Williams, Oliver Wolcott
New York:
William Floyd, Philip Livingston, Francis Lewis, Lewis Morris
New Jersey:
Richard Stockton, John Witherspoon, Francis Hopkinson, John Hart, Abraham Clark
Pennsylvania:
Robert Morris, Benjamin Rush, Benjamin Franklin, John Morton, George Clymer, James
Smith, George Taylor, James Wilson, George Ross
Delaware:
Caesar Rodney, George Read, Thomas McKean
Maryland:
Samuel Chase, William Paca, Thomas Stone, Charles Carroll of Carrollton
Virginia:
George Wythe, Richard Henry Lee, Thomas Jefferson, Benjamin Harrison, Thomas Nelson, Jr.,
Francis Lightfoot Lee, Carter Braxton
North Carolina:
William Hooper, Joseph Hewes, John Penn
South Carolina:
Edward Rutledge, Thomas Heyward, Jr., Thomas Lynch, Jr., Arthur Middleton
Georgia:
Button Gwinnett, Lyman Hall, George Walton
[ HOME | DOCUMENTS | EDDIE'S SEMINARS | FAQ | RELATED LINKS | CONTACT EDDIE | SEARCH | WHAT'S NEW | INTERNATIONAL TAX
INFORMATION ]

It is the year 2002 and Noah lives in the

United States...
The Lord speaks to Noah and says: "In one year I am going to make it rain and cover the whole
earth with water until all is destroyed, but I want you to save the righteous people and two of every
kind of living thing on the earth. Therefore, I am commanding you to build an Ark." In a flash of
lightning, God delivered the specifications for an Ark.
Fearful and trembling, Noah took the plans and agreed to build the Ark. "Remember," said the
Lord, "You must complete the Ark and bring everything aboard in one year." Exactly one year
later, a fierce storm cloud covered the earth and all the seas of the earth went into a tumult. The
Lord saw Noah sitting in his front yard weeping. "Noah." He shouted, "Where is the Ark?"
"Lord please forgive me!" cried Noah. "I did my best, but there were big problems. First, I had to
get a permit for construction and your plans did not comply with the codes. I had to hire an
engineering firm and redraw the plans. Then I got into a fight with OSHA over whether or not the
Ark needed a fire sprinkler system and floatation devices. Then my neighbor objected, claiming I
was violating zoning ordinances by building the Ark in my front yard, so I had to get a variance
from the city planning commission. I had problems getting enough wood for the Ark, because there
was a ban on cutting trees to protect the Spotted Owl. I finally convinced the U.S.Forest Service
that I needed the wood to save the owls. However, the Fish and Wildlife Service won't let me catch
any owls. So, no owls.
The carpenters formed a union and went out on strike. I had to negotiate a settlement with the
National Labor Union. Now I have 16 carpenters on the Ark, but still no owls. When I started
rounding up the other animals, I got sued by an animal rights group. They objected to me only
taking two of each kind aboard. Just when I got the suit dismissed, the EPA notified me that I
could not complete the Ark without filing an environmental impact statement on your proposed
flood. They didn't take very kindly to the idea that they had no jurisdiction over the conduct of the
Creator of the universe. Then the Army Corps of Engineer demanded a map of the proposed new
flood plain. I sent them a globe.
http://www.eddiekahn.com/noah.htm (1 of 2) [1/13/2004 8:13:57 PM]

Right now, I am trying to resolve a complaint filed with the Equal Employment Opportunity
Commission that I am practicing discrimination by not taking godless, unbelieving people aboard!
The IRS has seized all my assets, claiming that I'm building the Ark in preparation to flee the
country to avoid paying taxes. I just got a notice from the State that I owe some kind of user tax
and failed to register the Ark as a recreational water craft.
Finally the ACLU got the courts to issue an injunction against further construction of the Ark,
saying that since God is flooding the earth, it is a religious event and therefore unconstitutional." I
really don't think I can finish the Ark for another 5 or 6 years!" Noah wailed.
The sky began to clear, the sun began to shine and the seas began to calm. A rainbow arched
across the sky. Noah looked up hopefully. "You mean you are not going to destroy the earth,
Lord?" "No," said the Lord sadly. "The government already has."
http://www.eddiekahn.com/noah.htm (2 of 2) [1/13/2004 8:13:57 PM]

Jokes
Jokes:
Never Ever Give Up!
Pay IRS?
http://www.eddiekahn.com/jokes.htm (1 of 4) [1/13/2004 8:13:58 PM]

Jokes
Psalm 23:

Jokes
Pop Quiz:

Jokes
Friendly IRS Customer Service:
Need we say more?

Quotes
Quotes:
This page last updated July 14, 2003
New Quote:
"Find out just what people will submit to, and you have found the exact amount of injustice and
wrongdoing which will be imposed on them; and these will continue until they are resisted with
either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those
whom they oppress." - Frederick Douglas, 1875
Our Government
"Gentlemen, we have been living under anarchy, yet the business of living has gone on as usual. Be
careful; if our debates last too much longer, people may come to see that they can get along very
well without us."- Benjamin Franklin (1706-1790)
"I, AB, do solemnly swear (or affirm) that I will support and defend the Constitution of the United
States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the
same; that I take this obligation freely, without any mental reservation or purpose of evasion; and
that I will well and faithfully discharge the duties of the office on which I am about to enter. So
help me God." - Congressional Oath of Office
"Old forms of government finally grow so oppressive that they must be thrown off even at the risk
of reigns of terror." - Herbert Spencer (1820-1903)
"Society in every state is a blessing, but government, even in its best state is but a necessary evil; in
its worst state, an intolerable one." - Thomas Paine (1737-1809)
"The accumulation of all powers, legislative, executive and judiciary, in the same hands ... may
justly be pronounced the very definition of tyranny." - James Madison (1751-1863)
"We the people are the rightful masters of both congress and the court, not to overthrow the
http://www.eddiekahn.com/quote.htm (1 of 8) [1/13/2004 8:13:59 PM]

Quotes
Constitution, but to overthrow the men who pervert the Constitution. To sin by silence when they
should protest makes cowards of men." - Abraham Lincoln (1809-1865)
"Freedom and happiness of man are the sole objects of all legitimate government." - Thomas
Jefferson (1743-1826)
"Never trust your government. The price of freedom is eternal vigilance. A revolution is needed
every twenty years just to keep the government honest." - Thomas Jefferson (1743-1826)
"The Bible is the bed-rock on which our Republic rests." - Andrew Jackson (1767-1845)
"May none but honest and wise men ever rule under this roof." - John Adams (1735-1826)
"What country before ever existed a century and a half without rebellion? ... The tree of liberty
must be refreshed from time to time with the blood of patriots and tyrants. It's natural manure." -
Thomas Jefferson (1743-1826)
"The happiness of society is the end of government." - John Adams (1735-1826)
"Most people prefer to believe their leaders are just and fair even in the face of evidence to the
contrary, because once a citizen acknowledges that the government under which they live is lying
and corrupt, the citizen has to choose what he or she will do about it. To take action in the face of a
corrupt government entails risks of harm to life and loved ones. To choose to do nothing is to
surrender one's self-image of standing for principles. Most people do not have the courage to face
that choice. Hence, most propaganda is not designed to fool the critical thinker but only to give
moral cowards an excuse not to think at all." - Michael Rivero
"A nation can survive its fools and even the ambitious. But it cannot survive treason from within.
An enemy at the gates is less formidable, for he is known and he carries his banners openly against
the city. But the traitor moves among those within the gates freely, his sly whispers rustling
through all alleys, heard in the very halls of government itself. For the traitor appears no traitor;
he speaks in the accents familiar to his victim, and he wears their face and their garments and he
appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation; he works
secretly and unknown in the night to undermine the pillars of a city; he infects the body politic so
that it can no longer resist. A murderer is less to be feared. The traitor is the plague." - Cicero (106
BC-43 BC)
"The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to
protect themselves against tyranny in government." - Thomas Jefferson (1743-1826)
"The ultimate authority...resides in the people alone..." - James Madison (1751-1863), Federalist
Paper No. 46
"When the government fears the people, there is liberty. When the people fear the government,
there is tyranny." - Thomas Jefferson (1743-1826)
"We can't be so fixated on our desire to preserve the rights of ordinary Americans..." - President
William Jefferson Clinton, USA TODAY 11 Mar 93
"Let men not ask what the law requires, but give whatever freedom demands." - Jefferson Davis

Quotes
(1808-1889)
"I would think that if you understood what communism was, you would hope, you would pray on
your knees, that we would someday become communist." - Jane Fonda of Hanoi Jane notoriety at a
discussion with students, at Michigan State University, 1970
"The cause of America is in a great measure the cause of all mankind." - Thomas Paine
(1737-1809)
"The real rulers in Washington are invisible and exercise power from behind the scenes." - Felix
Frankfurter (1828-1965), U.S. Supreme Court Justice
"I believe that if the people of this nation fully understood what Congress has done to them...they
would move on Washington; they would not wait for an election. It adds up to a preconceived plan
to destroy the economic and social independence of the Unites States." - George W. Malone
(1890-1961), U.S. Senator from Nevada, 1957
"Resistance to tyrants is obedience to God." - Thomas Jefferson (1743-1826)
"Make yourself a sheep and the wolves will eat you." - Benjamin Franklin (1706-1790)
"These are the times that try men's souls...Tyranny, like hell, is not easily conquered." - Thomas
Paine (1737-1809)
"Every effort has been made by the Federal Reserve Board to conceal its powers, but the truth
is...the Fed (Federal Reserve System) has usurped the government. It controls everything here
(congress) and it controls all our foreign relations. It makes and breaks governments at will." -
Louis McFadden (1876-1936), ex-Chairman of the House Committee on Banking and Currency
"The course of history shows as a government grows, liberty decreases." - Thomas Jefferson
(1743-1826)
"In politics, nothing happens by accident. If it happens, it was planned that way." - Franklin D.
Roosevelt (1882-1945)
"Government big enough to supply everything you need is big enough to take away everything you
have." - Thomas Jefferson (1743-1826)
The Power of Money

"... Article 12 of the United States Code 152, states that lawful money of the United States, shall be
construed to mean gold or silver coin of the United States. We must deny the power of the general
government of making paper money, or anything else, a legal tender." - Thomas Jefferson
(1743-1826)
"Place economy among the first and most important virtues and public debt as the greatest of
dangers to be feared. We must not let 'rulers' load us with perpetual debt. We must make our
choice between economy and liberty or profusion and servitude." - Thomas Jefferson (1743-1826)
"The collection of any taxes which are not absolutely required for the public welfare is only a

Quotes
species of legalized larceny." - Calvin Coolidge (1872-1933)

"Give me control of a nation's money and I care not who makes the laws." - Mayer Anselm
Rothchild (1743-1812)
"I sincerely believe the banking institutions, having the issuing power of money, are more
dangerous than standing armies. They have set up a money asistocracy that has the government at
defiance." - Thomas Jefferson (1743-1826)
"The real truth of the matter is, as you and I know, that a financial element in the large centers has
owned the government of the U.S. since the days of Andrew Jackson." - Franklin Roosevelt
(1882-1945), from a letter to Colonel Edward Mandell House, 1933
If the American people ever allow private banks to control the issue of their currency, first by
inflation, then by deflation, the banks...will deprive the people of all property until their children
wake-up homeless on the continent their fathers conquered.... The issuing power should be taken
from the banks and restored to the people, to whom it properly belongs. - Thomas Jefferson
(1743-1826)
If Congress has the right under the Constitution to issue paper money, it was given them to be used
by themselves, not to be delegated to individuals or to corporations - Andrew Jackson (1767-1845)
"The power to tax involves the power to destroy."- John Marshall (1755-1835), -Supreme Court
Chief Justice, 1819
A few who can understand the system (check money and credits) will either be so interested in it's
profits, or so dependent on it's favors, that there will be no opposition from that class, while on the
other hand, the great body of the people mentally incapable of comprehending the tremendous
advantage that capital derives from the system, will bear it's burdens without complaint, and
perhaps without even suspecting that the system is inimical to their interests. - Rothschild Brothers
of London
Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most
unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its
system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all
our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the
most completely controlled and dominated Governments in the civilized world no longer a
Government by free opinion, no longer a Government by conviction and the vote of the majority,
but a Government by the opinion and duress of a small group of dominant men. - Woodrow Wilson
(1856-1924)
"We have in this country one of the most corrupt institutions the world has ever known. I refer to
the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. They are
not government institutions. They are private monopolies which prey upon the people of these
Unites States for the benefit of themselves and their foreign customers..." - Louis McFadden
(1876-1936), U.S. Congressman, 1932

Quotes
The Media
"Our job is to give people not what they want, but what we decide they ought to have." - Richard
Salant, former President of CBS News
"The business of the journalist is to destroy the truth; to lie outright; to pervert; to vilify; to fawn
at the feet of Mammon, and to sell his country and his race for his daily bread. You know it and I
know it, so what folly is this toasting an independent press? We are the tools and vassals of rich
men behind the scenes... They pull the strings... AND WE DANCE." - John Swinton, former
chief-of-staff for the New York Times. In an address to fellow journalists
"When you control opinion, as corporate America controls opinion in the United States, by owning
the media, you can make the [many] believe almost anything you want, and you can guide them." -
Gore Vidal from The Golden Age
Education
"To the security of a free Constitution, education contributes ... by teaching the people themselves
to know and value their own rights." - George Washington (1732-1799)
"I believe there are more instances of the abridgement of the freedom of the people by gradual and
silent encroachments of those in power than by violent and sudden usurpations." - James Madison
(1751-1863)
"I am much afraid that the schools will prove the very gates of hell, unless they diligently labor in
explaining the Holy Scriptures, and engraving them in the hearts of youth. I advise no one to place
his child where the Scriptures do not reign paramount. Every institution in which men are not
unceasingly occupied with the Word of God must be corrupt." - Martin Luther (1483-1546)
"Every child in America entering school at the age of five is insane because he comes to school with
certain allegiances toward our Founding Fathers, toward his parents, toward our elected officials,
toward a belief in a supernatural being, and toward the sovereignty of this nation as a separate
entity. It's up to you, teachers, to make all these sick children well by creating the international
child of the future." - Chester Pierce, a Professor of Educational Psychiatry at Harvard
Liberty
"Without free speech, no search for truth is possible; without free speech, no discovery of truth is
useful, without free speech, progress is checked, and the Nations no longer march forward, toward
the nobler life which the future holds for man. Better a thousand fold abuse, of free speech, than
denial of free speech. The abuse dies in a day, but the denial slays the life of the people, and
entombs the hope of the [human] race." - Charles Bradlaugh
"Those who make peaceful revolution impossible will make violent revolution inevitable." - John

Quotes
F. Kennedy (1917-1963)
"Proclaim Liberty throughout all the land unto all the inhabitants thereof." - Leviticus XXV
(Inscription: Liberty Bell at Philadelphia)
"Liberty lies in the hearts of men and women; when it dies there, no constitution, no law, no court
can save it, no constitution, no law, no court can even do much to help it" - Learned Hand
(1872-1961)
"Those who expect to reap the blessing of freedom must, undergo the fatigue of supporting it." -
Thomas Paine (1737-1809)
"Every citizen should be a soldier. This was the case of the Greeks and the Romans and must be
that of every free state." - Thomas Jefferson (1743-1826)
"Is life so dear or peace so sweet as to be purchased at the price of chains and slavery? Forbid it
Almighty God! I know not what course others may take; but as for me, give me liberty or give me
death." - Patrick Henry (1736-1799)
"The natural liberty of man is to be free from any superior power on earth, and not to be under
the will or legislative authority of man, but only to have the law of nature for his rule." - James
Otis (1725-1783)
God and/or His Laws

"We have staked the whole future of American Civilization not upon the power of Government,
far from it. We have staked the future... upon the capacity of each and all of us to govern ourselves
according to the Ten Commandments of God." - James Madison (1751-1863)
"Indeed I tremble for my country when I reflect that God is just." - Thomas Jefferson (1743-1826)
"I am but one, but I am one; I cannot do everything, but can do something. What I can do, I do,
by the grace of God." - Anonymous
"You have rights antecedent to all earthly governments; rights that cannot be repealed, or
restrained by human laws; rights derived from the Great Legislator of the Universe." - John
Adams (1735-1826)
"We are not weak if we make a proper use of those means which the God of Nature has placed in
our power ... The battle, sir, is not to the strong alone; It is to the vigilant, the active, the brave." -
Patrick Henry (1736-1799)
"Propitious smiles of heaven can never be expected on a nation that disregards the eternal rules of
order and right which heaven itself has ordained." - George Washington (1732-1799)
"Man will ultimately be governed by God ... or by tyrants." - Benjamin Franklin (1706-1790)

Quotes
Miscellaneous
"Beware the leader who bangs the drums of war in order to whip the citizenry into a patriotic
fervor, for patriotism is indeed a double-edged sword. It both emboldens the blood, just as it
narrows the mind. And when the drums of war have reached a fever pitch and the blood boils with
hate and the mind has closed, the leader will have no need in seizing the rights of the citizenry.
Rather, the citizenry, infused with fear and blinded by patriotism, will offer up all of their rights
unto the leader and gladly so. How do I know? For this is what I have done. And I am Caesar." -
Julius Caesar (100 - 44 BCE)"The people made the Constitution and (only) the people can unmake
it. It is the creature of their own will and lives only by their will." - John Marshall (1755-1835)
"If a man hasn't discovered something he would die for, he isn't fit to live." - Martin Luther King
(1929-1968)
"Our ancestors who migrated here were laborers, not lawyers." - Thomas Jefferson (1743-1826)
"In question of power, let no more be heard of confidence in the man but bind him down for
mischief by chains of the Constitution." - Thomas Jefferson (1743-1826)
"No man has a natural right to commit aggression on the equal rights of another." - Thomas
"I have sworn upon the altar of God, eternal hostility against every from of tyranny over the mind
of man." - Thomas Jefferson (1743-1826)
"The revolution was affected before the war commenced. The revolution was in the minds and
hearts of the people ... This radical change in the principals, opinions, sentiments and affections of
the people was the real American Revolution." - John Adams (1735-1826)
"It does not matter how many lies we tell, because once we have won, no one will be able to do
anything about it." - Dr. Goebbels to Adolf Hitler
"The great mass of people...will more easily fall victim to a big lie than to a small one." - Adolf
Hitler
"The man who never looks into a newspaper is better informed than he who reads them; inasmuch
as he who knows nothing is nearer to the truth than he whose mind is filled with falsehoods and
errors. It is a melancholy truth that a suppression of the press could not more completely deprive
the nation of its benefits than is done by its abandoned prostitution to falsehood." - Thomas
"75 to 90 percent of American Trial Lawyers are incompetent, dishonest, or both" - Chief justice
Warren Burger, U.S. Supreme Court
"The standard of living of the average American has to decline...I don't think you can escape that."
- Paul Volcker, former Federal Reserve Chairman
In the beginning of change, the patriot is a scarce man; brave, hated and scorned. When his cause
succeeds, however, the timid join him, for then it costs nothing to be a patriot." - Mark Twain

Quotes
(1835-1910)


Author Unknown
My parents steamed separately to America. In the year 1912 ironically a month after the Titanic
left the same port, my infant mother boarded a steam ship called Mayflower. She was so tiny she
could fit in a shoebox and was not expected to live. My father’s ship barely survived a storm at sea
with winds at hurricane force, approximately at the same location as seen in the Perfect Storm. His
ship was filling with water, and the props were pushing and jerking violently in and out of the
mountainous waves. They could not help their sister ship that was sending out SOS messages
during this storm and was never seen again. All because my grandparents were seeking a better
life.
This is a story of the struggle of men and government. God created man. Then man, with the grace
of God, created government. Then man believed he was God and replaced government as a
religion (cult). Then there was anarchy.
Thomas Jefferson wrote all men are endowed by their Creator with certain unalienable rights and
among these are life, liberty, and the pursuit of happiness.
DeTocqueville arrived here from France in 1831 for analysis and prophecy of America. He implies
that, before promoting the benefits of democracy, one must understand its limitations. In general,
Americans don ‘t have a clue about the original Republic. Benjamin Franklin, after the
Constitutional Convention, said "we gave you a Republic, if you can keep it."
The 56 men that signed the Declaration of Independence paid an extreme price. Carter Braxton of
Virginia lost his ships, property and died in rags. Thomas McKeam served without pay in
Congress and poverty was his reward. Thomas Nelson, Jr. ‘s wife died in jail. John Harthe lived in
caves; and soon after his wife died and 13 children vanished, he died from a broken heart. Five
were tortured to death by the British as traitors, 9 died fighting the British, their homes burned,
their sons either lost their lives or were captured in the war.
http://www.eddiekahn.com/rebublic_under_seige.htm (1 of 7) [1/13/2004 8:13:59 PM]

After the Revolution, the British returned in 1812 and burned the Library of Congress because
they were losing their plans of regaining control of their old colonies. Burning books /records was a
good start (remember Adolph and the 1930s book burning).
Today, there are two systems of law operating in America,
1) The Republic, which is the law of land.
2) Democracy or colorable law, which looks/acts like law.
The Republic:
Article 4, Sec. 4 of the Constitution states "the United States shall guarantee to every state in this
union a Republican form of government, and shall protect each of them against invasion and
against domestic violence." etc. As early as 1782, Jefferson said that it was ridiculous to suppose
that a man should surrender himself to the state, this would be slavery.
That’s why the Republic, with its checks/balances, provided for authority through the election by
the people of public officials best fitted to represent them. The attitude towards property respects
the laws and individuals’ rights through sensible economic procedure that does not create
irresponsible debt and prevents foreign domination.
Democracy:
The 1928 US Government Training Manual, No.2000-25, War Department Chief of Staff states:
"A government of the masses. Authority derived through mass meeting or any form of direct
expression, results in mobocracy. Attitude toward property is communistic negating property
rights. Attitude toward law is that the will of the majority shall regulate, whether it be based upon
deliberation or governed by passion, prejudice, impulse, without restraint or regard to
consequences. Results in demagogism, license, agitation, discontent, anarchy."
Also, a democracy has no system of Constitutional natural rights to protect the individual from the
absolute will of any voting majority, which is a small segment of the population, and they regulate
laws which, without limiting laws, creates endless colorable rules and regulations in an effort to
please everyone until the system is under complete government control. A democracy may grant
civil rights, but in a Republic, you automatically have natural civil rights.
Republic’s Siege:
There are two ways an enemy can come on shore, either by invasion or by foreign contract. The
following discussion reviews the invasion by foreign contract and is the basis for the Republic’s
"siege."
In an effort to subvert the intent of the Founding Fathers, the original Constitution for the (u)nited
States of America has been skillfully amended over the years. Public policy from the 11—28th
amendments created an alternate class/status of citizenship by privilege known as a person, subject
or individual who is a citizen of the government of Washington DC (US Const., Art. 1, Sec. 6,
Cl.17- 18 and Art. 4, Sec. 3, Cl.2) rather than a citizen of his/her state under the protection of the
Bill of Rights.

The Bill of Rights was crafted from the Declaration of Independence and Articles from the
Constitution of the U. S. of A. and created an avenue for other amendments to be crafted to
by-pass the Constitution of the U.S. of A.
When the United States was formed by the Founding Fathers with Anglo-Saxon common law /1,
the British Board controlled the law merchant and commingled commercial private Roman civil
law (ecclesiastical) with general common law for the off-shore Marine Insurance Act of 1789 /2/3.
(Don’t confuse this with the (u)nion of states’ common law).
A deal was cut with the Fathers that essentially brought the states back under the Board’s control.
This is the reason for Article 1, Sec. 8, Clause 5 (foreign coin). Furthermore, Article 1, Sec. 10, Cl.
1, says no State, (D.C. is a foreign State) shall make anything but gold and silver coin a payment of
debts, etc. which was written into the Constitution because the English would only do business with
the Colonialists in gold.
Thomas Jefferson warned of foreign Roman civil law being commingled with English common law.
Thereafter, the common law of England did become commingled and came on-shore with the
compelled performance of private Roman civil (church) law. Jefferson tried to protect and guide
public commercial law away from ecclesiastical servitude (policy) law.
Jefferson referred to liberty as Public Law for private purposes which comes before the State.
Prior to the 14th Amendment, the House functioned for private commercial benefit and the Senate
for non-commercial, public municipal law.
Look closely at the 14th Amendment passed in 1868. Primarily, it made each individual a federal
citizen of the municipal corporation of the District of Columbia. Secondly, it combined the function
of the Senate and House to operate for private commercial benefit. Thirdly, it made each of us
responsible for the public debt by making us beneficiaries of the "public trust" it established.
Also, the 14th Amendment trust (otherwise known as the statute of charitable/religious/church
trust), uses and enforces the old Star Chamber jail reinforced by "Writs of Assistance, King’s
conscience and the divine right of Kings". Under the democracy, the Courts pattern themselves
after admiralty /2 maritime law and the law of nations. In effect, you are at-sea-on-land with only
captain’s law which becomes military court as signified by the flag with yellow fringe.
The Limited Liability Act of 1851 insured slaves and cargo. The Civil Rights Act of 1866
took_away absolute allodial property rights /4 "in personam", and replaced it with the State’s
controlled personal property law (‘in rem, possessed by another"). So not to be repealed, the (1868)
14th Amendment framed the private public charitable trust, which allowed private Roman civil
law or private conscience "religious’ intent /5 into today’s public law as private, public, merchant,
commercial policy by-passing the First Amendment (1791) "Congress shall make no law
establishment of religion." There are approximately 30 private Roman civil law titles /5 and 20
public municipal law titles. What would Jefferson say about this?
This allowed the new charitable democracy to operate outside the Constitution /2 and was also
influenced by English-born Robert Owenn who was granted a spot in the Capitol of New York Hall
of Representatives for his ideas. He published A New View of Society. Another influence was
Fourier who believed that private property should not be allodial established in the sovereign

(u)nited (s)tates of America. Owenn and Fourier influenced Karl Marx and Frederich Engles who
wrote the 1848 Communist Manifesto. For the common good?
The Civil War did not end slavery. After the Civil War, slaves were homeless, and they were
vulnerable to become a citizens of the new 14th Amendment trust and would now owe an
allegiance to the 14th trust under the jurisdiction of the District of Columbia, not his/her own state.
Again, they were outside the protection of the Republic form of government guaranteed to the
states as per Art. IV, Sec. 4, which men had denied them, not the law under the Republic. The 1964
Civil Rights Act proved to Americans that the 14th Amendment did not give them their
unalienable rights either. Now, everyone is denied these rights /6 since we gave up our protection
unknowingly and unintentionally through the 14th Amendment which created third party trust
intervention into our private lives and is our new Master outside of the Republic’s mandated
protection under Article I, Sec. 10.
In addition Art. 4, Sec. 4 of the 14th Amendment trust provides that "public debt, shall not be
questioned". Thereafter, the government through compelled performance required the debt be
paid back for the mere privilege of existing here.
A State cannot interfere with peoples’ lives and make no law impairing the obligation of contract.
The District of Columbia is considered a State in off-shore international law. Foreign agents for the
private Federal Reserve trust /7 which is commingled with the 14th Amendment trust through
unrevealed contracts, collect taxes which go off-shore using USC Title 22. Both trusts are members
of the International Monetary "Fund" /7 as opposed to the Negotiable Instrument Law which sets
forth no limited liability interference and the payment of all debts for free enterprise and liberty of
choice in all areas of life without government interference. The individual is subject to the civil
commerce under the public law merchant as protection. /8
Before the 14-15th Amendments were put into place, they had to replace the original 1819 13th
Amendment which read,
"if arty citizen of the United States shall accept, claim, receive, or retain
any title of nobility or honour, or shall, without the consent of Congress,
accept and retain any present, pension, office, or emolument of any king
whatever, from any emperor, king, prince, or foreign power, such person
shall cease to be a citizen of the United States, and shall be incapable of
holding any office of trust or profit under them, or either of them."
The original 13th Amendment’s official date is March 12, 1819, the date of re-publication of the
Virginia Civil Code. Its intent enforced Art. 1, Sec. 9, Cl. 8 such that "no title of nobility shall be
granted by the United States." And shall prohibit lawyers rank of Esquire and Judges Honour as
"King" and loyalties to foreign governments as well as bankers from voting, holding public office
and/or to subvert the government including incidents, for example, the charter of US Bank and the
1794 Jay Treaty agreeing to pay 600,000 in sterling to King George III, as reprisal for the
American Revolution.
The original 1819 13th Amendment was quietly replaced in 1865 with a new 13th Amendment.
Section 1 says, "neither slavery nor involuntary servitude" , but there’s nothing said about
voluntary slavery. Why has it been left out? What happened to civil rights? /9

The Federal Reserve told Congress it had to remedy the debt, and it is reported the Dept. of
Commerce through the Treasury, purchase a Bond on every live birth certificate etc. with money
borrowed from the Federal Reserve trust. The money borrowed from the Federal Reserve is then
invested in the stock market (approximately a billion per bond for approximately 3-1/2 million
bonds per year). proof is with the Bureau of Federal Children, which began collecting birth
certificates since 1921, the Shepherd/Townsend Act of 1922, the Federal Reserve Act of 1913,
various legislative acts in 1933 arid Congressional Record HJR 192 using the UCC 1-financing
statement at the state level. /7
There is no fiction of law which can convert the natural born (sovereign) citizen of this country
into a subject, /6 unless he/she gives themselves away as a slave (waiver of rights). It has to be
knowing, /10 willing, intentionally, with full disclosure. Our government schools taught this, right!
The 1913 private Federal Reserve Act became a setup for 1933 Bankers, /7 which promised to pay
off the 14th Amendment charitable trust debts forever with script payments of your hard
labor/property. Before President Kennedy was assassinated, he was going reveal and stop these
debts by replacing the Federal Reserve note with a National Reserve note as evidenced by a 1963
series United States $5 bill etc. President Johnson removed this note. Lincoln died for similar
reasons, and the Czar died preventing the Central Banks coming onto Russian shores.
Senate Report No. 93—549, pgs. 186, 5942.1 (Silent Weapons for Quiet Wars see research manual
TM-SW7905 . 1) discloses a declaration of war upon the American people for the national debt, not
the debt of the Republic but the debt of the legislative democracy of DC with its addictive
privileges and benefits through compelled performance. You are required to volunteer or else by
the Power of Magistrate to move you away from the law. Judges (captains) are under orders (1933,
HJR192 Emergency Act "guilty until proven innocent") and thereafter put a lock on the door of
Article III, Sec. 2, Common Law Court. If you demand a common law trial by jury hearing, you
can be held in contempt by the Judge/King/ Magistrate who can place you in the Star Chamber for
some time. /10
Thereafter, no citizen of the Republic may help with any testimony or cross-examination of
witnesses denying us our Sixth Amendment council of choice. Any attempt to demand that right
under the Bill of Rights will be denied to you. Where are the Judges/Kings that took an oath of
office to defend the Constitution? They don’t want to jeopardize their job?
Under government, the Court takes away your Christian name and renames you for jurisdictional
purposes with a fiction name, using all capital letters or abbreviations of your name or using the
State’s SS number. The U.S. Supreme Court in 1797 warned of the misuse of fiction jurisdiction
over sovereign citizens. What it means is that Americans are sovereigns without subjects, because
all of us are equal. /6
Under 16 Am Jur 2d Constitutional Law, the Courts must apply the terms of the Constitution, as
written, and are not at liberty to search for meaning beyond the instrument and "an emergency
cannot create power".
The World Court states that to create any constitution of any country a man cannot volunteer his
labor away nor be taken.

Consider that silence is slavery under Roman civil law; and under this law, you are considered a
pagan (subject). /6 The Republic is still there if you want it.
In 1953, John Swinton, former Chief of Staff of the New York Times, gave a press club toast "I am
paid weekly for keeping my honest opinions out of the paper. The business of the journalist is to
destroy truth; to lie outright, to pervert, to vilify. Our talents and lives are the property of other
men. We are intellectual prostitutes." in order to sell his country and his race (all race) for his
daily bread.
In 1869, Lysander Spooner, a lawyer, wrote "no man can delegate or give to another any right of
arbitrary dominion over himself for that would be giving himself away as a slave. Any contract to
do so is necessarily an absurd one and has no validity. To call such a contract a constitution or by
any other high sounding name does not alter its character as an absurd and void contract . . ."
This story was dedicated to my quest to find the meaning and why there is an extension of a Star
Chamber in this country, and why I was placed in it, in the land of the free, and also dedicated "to
a Republic for which it stands." Freedom demands tenacity.
Footnotes:
/1 Republic; Works of Wilson Andrews re Anglo Saxon common law.
Fenhallow v. Doane (1795), 3 US (3 Dall.) 55, 93-94. re individual sovereignty; people are the state.
/2 Admiralty; 18 USC 7 (3), The power of captain is absolute, international law. (Courts,
Judge-captain)
Hooven supra 674. Fed. legislation not subject over sovereign of the 50 states, unless (knowingly)
waived. Boyd v. U.S. 116 us 616 635. MacKenzie supra. Courts have to guard against
encroachments of Constitutional rights. Mackenzie supra . Only Federal sovereignty.
Arver v U.S. 245 US 366, 377. State citizenship is primary before DC citizenship.
Sadat v. Mertes, 615 F2d. Officially recognized that state citizenship is separate from DC
citizenship.
Freytag V. C.I.R, III S.Ct. 2631 (1991). "That liberty" comes before the state. "The blessings of
liberty" is commercial.
Smith v Allwright. 321 U.S. 649. 88 L,Ed. 987. 64. S.Ct 757, 151 ALR 1110, reh den 322 U.S. 769,
88 LEd. 1594, 64 S.Ct. 1052.
"Constitutional democracy" operating outside the Constitution.
U.S. v. Wong Kem Ark. 169 US 649, 676. Original citizenship came from the state not Constitution
M’llvaine. supra.
England did not grant independence, they recognized it always existed after Treaty.
/3 Marine 1789 Sec 34, Jud.
/4 Redfieid v. Fisber. or 1930 292. Pac 813, 816. The right to live, own property
Bowers v. Kerbugh Empire Co. 271 US 170, 174. labor is property.
/5 Roman Army funding by Roman Church.
/6 Chisholm supra LEd at 472. Americans are sovereigns without being a subjects we are equal.
Games et al v. Buford. 31 KY 481, 500-501. Power of sovereigns is with people only.

Perry v. U.S. 1935 294 US 330, 353. Congress is without power to revoke your sovereignty.
Talbat v. Janson. 3 US (3 Dall) 133. Allegiance applies to subjects not sovereignty.
Van Valkcenburg. supra, at 47. 14th Amendment does not apply to a sovereign.
Twining v. New Jersey. 211 US 79, 89. 14th Amendment did not give any new unalienable rights
to sovereign.
Yick Wo. supra, 370. Sovereignty itself is not subject to law.
/7 Fed. Rev. Lewis v. U.S. 680 F2d 1239. By Henan, Noontide Press. 1968.
Lewis supra.
Congressional P 83, 3/9/33, from a speech by Senator Patman.
John B. Nelson SENATE REPORT No. 93-549, etc.
UCC 3-104.
Milam v U.S. 524 F2d 629. gold. UCC 3-104 Floating currency, no reserve or notes.
Title 22. Sec. 286 USC. International Monetary "Fund"
Clearfield Trust Co. v. US. Burr 309 US. 242
Bank of US. v. Planters Bank 22 US. 904. When state and government engage in business, the laws
of business apply, as in a corporation law.
/8 Swift v. Tyson, 16 Peters 1842 To protect the people from Roman law.
U.S. Constitution Articles 1/9/I & IV/2/3. Protects against slavery.
/9 U.S. v. Morris. 125 Fed 322. 331. 1176 1180 Slaughter-House Cases, supra, 73-74. Sadat v.
Mertes, 615 F2d 1176, 1180. Cruikshank supra.
State citizenship separate and apart from national citizenship. Free citizens have unalienable
rights, Courts recognize certain citizens were not free.
/10 Brady. supra 748. Johnson v. Zebet, 304-US 458. 464.
Aetna Inc Co. v. Kennedy 301 US 389-393.
Agreed without full disclosure unknowingly, from first date of waiver, a waiver of rights has no
power.
Horning v. District of Columbing. 245 US 135. 138. Juror can ignore the law, (most laws are
colorable).
U.S. v. Woodley. 726 F2d 1328, 1338. Cannot accept an unconstitutional statute.

Syllabus
Syllabus for Presentation of Eddie Kahn - US

Income Tax Seminar
1. Letter to the IRS Commissioner.
2. Are we "customers" of the Internal Revenue Service?
3. Importance of publishing obligations of the General Public in the Federal Register.
4. Administrative Procedures Act - force federal agencies to provide proof of authority if
challenged.
5. How to get your personal records via the Privacy Act and the reason why.
6. How and why you should use the Freedom of Information Act.
7. How to know if a federal law is applicable to you (something that 95% of all lawyers do
not know!)
8. Have an IRS agent fired if he/she violates your rights using the IRS Restructuring and
Reform Act of 1998
9. Similarities of the US, Canada, Australia and New Zealand Income Tax laws and why it is
important for you to know.
http://www.eddiekahn.com/syllabus.htm [1/13/2004 8:13:59 PM]


(author unknown)
I had a dream the other night I didn't understand,
A figure walking through the mist, with flintlock in his
hand.
His clothes were torn and dirty, as he stood there by my

bed,
He took off his three-cornered hat, and speaking low he
said:
"We fought a revolution to secure our liberty,

We wrote the Constitution, as a shield from tyranny.
For future generations, this legacy we gave,

In this, the land of the free and home of the brave.
The freedom we secured for you, we hoped you'd

always keep,
But tyrants labored endlessly while your parents were
asleep.
Your freedom gone -- your courage lost -- you're no

more than a slave,
In this, the land of the free and the home of the brave.
You buy permits to travel, and permits to own a gun,
Permits to start a business, or to build a place for one.
On land that you believe you own, you pay a yearly rent,
Although you have no voice in choosing how the
money's spent.
Your children must attend a school that doesn't

educate,
Your moral values can't be taught, according to the
state.
http://www.eddiekahn.com/ghost_of_valley_forge.htm (1 of 3) [1/13/2004 8:14:00 PM]

You read about the current "news" in a very biased

press,
You pay a tax you do not owe, to please the IRS.
Your money is no longer made of silver or of gold,

You trade your wealth for paper, so life can be
controlled.
You pay for crimes that make our Nation turn from God
to shame,
You've taken Satan's number, as you've traded in your
name.
You've given government control to those who do you

harm,
So they can padlock churches, and steal the family
farm.
And keep our country deep in debt, put men of God in

jail,
Harass your fellow countryman while corrupted courts
prevail.
Your public servants don't uphold the solemn oath

they've sworn,
Your daughters visit doctors so children won't be born.
Your leaders ship artillery and guns to foreign shores,

And send your sons to slaughter, fighting other
people's wars.
Can you regain your Freedom for which we fought and

died?
Or don't you have the courage, or the faith to stand with
pride?
Are there no more values for which you'll fight to save?

Or do you wish your children live in fear and be a
slave?
Sons of the Republic, arise and take a stand!

Defend the Constitution, the Supreme Law of the Land!
Preserve our Republic, and each God-given right!

And pray to God to keep the torch of freedom burning
bright!"
As I awoke he vanished, in the mist from whence he

came,
His words were true, we are not free, and we have
ourselves to blame.
For even now as tyrants trample each God-given right,

We only watch and tremble -- too afraid to stand and
fight.
If he stood by your bedside in a dream while you're

asleep,

And wonder what remains of your right he fought to

keep.
What would be your answer if he called out from the

grave?
Is this still the land of the free and home of the brave?

We The People...
We The people (givemeliberty.org)

This page was last updated Wednesday, January 15, 2003
12-31-02
It Is Now Out In The Open In Congress:

Constitution is "Inappropriate and Anachronistic."
Only One Non-Violent Option Left For The People:
It Is Un-American To Fund This Government
The power to tax and the power to wage war are the two most potent enumerated powers; most sought after
by government; most potentially harmful to individual Liberty; most in need of citizens' scrutiny.
As further justification for the People to stop sending money to the federal government, this article reports on
the treasonous behavior that occurred in the halls of Congress on October 2 and 3. 2002, regarding the
unconstitutional commitment of this nation to war.
The government's disdain and disrespect for the Constitution came out into the open on October 3, 2002, in the
House of Representatives, during the second day of a two-day hearing on the Iraq Resolution (H.J. Resolution
114), "AUTHORIZATION FOR USE OF MILITARY FORCE AGAINST IRAQ."
Congressman Ron Paul reminded the Chairman of the House of Representatives Committee on International
Relations that the Constitution required a congressional Declaration of War before the armed forces of the
United States could be applied in hostilities overseas, not H.J.R 114, a congressional Resolution authorizing
the President to decide if and when to apply that force.
However, Chairman Henry Hyde is quoted, for the record, "There are things in the Constitution that have been
overtaken by events, by time. Declaration of war is one of them.There are things no longer relevant to a
modern society.Why declare war if you don't have to?.We are saying to the President, use your judgment.So,
to demand that we declare war is to strengthen something to death. You have got a hammerlock on this
situation, and it is not called for. Inappropriate, anachronistic, it isn't done anymore.."
The 50-member Committee then went on to vote against the substitute amendment offered by Rep. Paul,
which read simply (after the resolving clause), "That pursuant to Article I, Section 8 of the United States
http://www.eddiekahn.com/We_The_People.htm (1 of 23) [1/13/2004 8:14:02 PM]

We The People...
Constitution, a state of war is declared to exist between the United States and the Government of Iraq and the
President is hereby authorized and directed to employ the United States Armed Forces to carry on war against
the Government of Iraq and to bring the conflict to a successful conclusion."
The Committee then went on to approve H.J. Resolution 114, which was eventually approved by Congress.
If anyone has lingering doubts about the corruption of the Legislative and Judicial branches and the devolution
of our Constitutional system of check and balances into the instrumentalities of the powers that truly run our
nation, the proof is now put before you.
The processes of limited government, defined by the Constitution are, indeed, no longer relevant and have
been neutered to the extent that today only the shadow of a bona fide Constitutional government exists.
Our legislative leaders and federal judges feel so comfortable working outside the Constitution that they now
no longer even hesitate to talk of such matters on the record. They make contemptible judicial decisions and
strong-arm the workings of the legislative process to achieve their ends, knowing that the tentacles of power
will protect them, their careers and their benefactors.
Indeed, the two most significant powers a People can grant its government are the power to tax and the power
to commit to war. These are the most critical elements of government. As we sit today, our federal government
is in gross violation of the strict limits the People have delineated around these crucial powers.
As many know, this Foundation has led the foremost public challenge put forth to date, to enforce the 1st
Amendment's guarantee of our individual right to petition for redress of grievances regarding these matters. We
have petitioned repeatedly regarding hundreds of specific legal and Constitutional issues surrounding the
income tax system of this nation and put forth a petition publicly exposing the fraudulent legislative process that
may shortly deliver this nation into war.
On the question of moving the federal Judiciary to challenge the unconstitutional declaration of war, the
Foundation presents for your review a summary of the lawsuit brought by Bob Schulz and several others in
1999 seeking redress, through the courts, for the unlawful application of the armed forces of the US in
hostilities in the Federal Republic of Yugoslavia in 1999. Click here to read the Memorandum of Law, dated
7/7/99, written by Bob Schulz. Click here to read the Verfied Compliant, dated 5/28/99, against the President,
the Secretary of Defense and the Chairman of the Joint Chiefs.
Any reasonable man would agree that every citizen has standing to sue if the cause of action is an alleged
violation of the Constitution. In other words, the court's determination of the constitutional question affects each
and every citizen. However, the court's have developed a "standing doctrine" as a way of avoiding certain
questions. The standing doctrine says that for a plaintiff to have standing to bring an action he must show injury
"different in kind and degree" from the injury suffered by everybody else. Otherwise, the court says, the
plaintiff's question is a "political question" for Congress to decide.
The case against the use of force in Yugoslavia without a declaration of war was dismissed for lack of
standing. In other words, according to the court, the plaintiffs had to take their complaint to Congress - the very
people who violated the Constitution, and who obviously were not going to listen to the plaintiffs.
In other words, Congress gets to change the Constitution (but in a way not authorized by the Constitution).
Finally, to see how redress actually proceeds in the courts, please read the article by Stephan Archer of World
Net Daily entitled "Balkans war suit thrown out. Judge dismisses lawsuit, says plaintiffs lack standing."
On the matter of petitioning the Legislature about unconstitutional abuse of the law making process and their
oaths of office, the Foundation offers an insightful analysis contributed by Mike Bodine analyzing the two-day
October 2002, House International Relations Committee hearing "authorizing" (unconstitutionally) the President
to initiate war against Iraq.
Consider the full implications of the comment made by Chairman Henry Hyde:
"It is fascinating to go back in history and see how our Constitution

was drafted and what it means. There are things in the Constitution
that have been overtaken by events, by time. Declaration of war is one."
Also of particular note in the proceeding's transcript is Rep. Ron Paul (Texas) who, although brave enough to
publicly, and aggressively, confront the Constitutional problems arising out of the Committee's actions, failed to
have the fortitude to actually vote for his own proposed amendment which was a direct, formal, and
constitutionally proper, declaration of war against Iraq.
The American People are witnessing the real-time meltdown of the Constitution. The judges aid and abet the
process. The representatives know it is wrong. Clearly, it is past time for the People to exercise their

We The People...
unalienable right to wrestle an errant government back into the limits unambiguously prescribed in our
Constitution.
Indeed, the government's refusal to grant redress at every turn leaves us but ONE peaceful option - keep our
money out of Washington.
In the October hearing referred to above, Chairman Hyde makes the following admission which he reiterates:
"Now, the Congress always has the last word in war and peace
because we control the purse strings."
Not so. This Foundation reminds everyone that it is the People, not Congress, that ultimately control
the purse strings.
We The People have not just the right, but also the duty to protect our Republic from those forces that would
destroy it. We must not allow the use of our own money to fund the destruction of that which so many of our
countrymen have died for.
We call on all Americans to join us, educate yourselves and your families and prepare to engage in a peaceful,
but pro-active mass movement to stop income tax withholding, filing and payment across our land.
History will attest to the moral certainty and righteousness of these actions. Together, we will stem the flow of
the money that is enabling the silent overthrow of our Constitutional Republic.
It is un-American to fund tyranny, treason and despotism.
We love our country but we have come to despise our government because of its growing disrespect of the
People and our Constitution.
It is time to put a collective foot down against the government's abuse of its power.
STOP SENDING MONEY TO WASHINGTON DC.

STOP FUNDING THE FEDERAL GOVERNMENT.
SAVE THE REPUBLIC.
Click Here to Read An Analysis Covering the House I/R Committee Passage of the Iraq War
Resolution
Click Here to Access the Full Transcript of the Oct. 2/3 Iraq Hearing
Our homepage is: www.GiveMeLiberty.org
Click Here Schulz doesn't file or pay. Learn about the Schulz "Tax Termination" package.
http://www.givemeliberty.org/summer/TestDrive.htm
Click Here To Help WTP the Easy Way

http://www.givemeliberty.org/5linxdetails.htm
Donate
Join the WTP Congress

We The People...
1-05-03
Reminder: WTP-TV Premiers Tuesday PM

The Truth Goes Live
This Tuesday evening, January 7th, WTP unveils its latest technological weapon in the quest to restore the Republic and
the Constitution: The ability to produce and broadcast, a regularly scheduled live multimedia, multi-source, television
quality program series across America.
The initial program series will be directed at informing masses of Americans about our new agenda to restore our
Constitution and enforce our Right to Petition.
We encourage you to share news of WTP-TV with everyone. This is particularly imperative for our first broadcast
next week.
The initial broadcast will be at 9:30 PM (Eastern) on TUESDAY January 7, 2003 (6:30 PM Pacific).
To watch the broadcast go to the following link: http://www.GiveMeLiberty.org/WTP-TV.htm
Click Here to Read the Full Article From January 2nd.
First Broadcast: Tuesday January 7, 2003

9:30 PM (Eastern), 6:30 PM (Pacific)
You must have the latest version of Microsoft Media Player to receive the broadcast.
lf you need it, click on the following link below, save it to your desk top, then follow the instructions for
installing.
MAC Users click here to download the newest Media Player

PC Users click here here to download the newest Media Player
What Will Happen January 7th?

We The People will prepare to execute a lawful, mass-movement To Cut Government
Funding
How We Will Accomplish Our Mission?
By legally ending the withholding, filing and paying of individual federal income
taxes
Why we are taking this action?
1) The individual income tax is unconstitutional in its origin, illegal in its operation,
and the government will not justify its behavior or respond to any Petition for

We The People...
Redress.
2) The income tax is being used to fund government activities that are
unconstitutional, and government will not justify its behavior or respond to Petitions
for Redress:
❍ The income tax pays the interest on an unconstitutional national debt.
❍ The income tax supports military aggression overseas without a formal declaration
of war.
❍ The income tax supports our rapidly expanding police state and the destruction of
our liberty.
Who Should View This Broadcast?
Every employer, every employee and every self-employed person.
When Will We The People Execute This Action?
Immediately.
Where Will We The People Initiate This Action?
Nationwide
What Are The Next Steps?
To be detailed on the live broadcast.
Join us next Tuesday, January 7th, 9:30 PM Eastern.

www.GiveMeLiberty.org/WTP-TV.htm
Our homepage is: www.GiveMeLiberty.org
Click Here Schulz doesn't file or pay. Learn about the Schulz "Tax Termination" package.
http://www.givemeliberty.org/summer/TestDrive.htm
Click Here To Help WTP the Easy Way

http://www.givemeliberty.org/5linxdetails.htm
Donate Join the WTP Congress

We The People...
Stop Talking and Do Something

We Will Drive Together to DC
and Deliver Our Warning:
This Nation Has a Constitution.
Our Government WILL Obey It.
Details Released for the Freedom Drive
Sign-up to Take the Drive or be a Sponsor
For three years, this Foundation has been unsuccessful in its numerous attempts to get our servant government to
respond to formal petitions for redress of grievances regarding well documented accusations challenging the legal
authority and jurisdiction of the US Government to enforce an income tax upon the People of this nation.
From any perspective, the utter defiance of our government to answer the People's repeated, respectful and
well-documented petitions is, by definition, TYRANNY.
Our government's failure to publicly establish their legal authority in this, the most basic, intrusive and significant
of all governmental powers - the power to tax - was the cause of our first revolution, and it may well be the cause
of a second.
These despotic acts cannot be allowed to go unchallenged by a free People.
Tyranny is not some "concept" from the history books. It is not some "philosophy" of political existence. It is
real. It is alive. It has dared to raise its head again.
Unless repelled by peaceful means still available to us, it will proceed unchecked until the light of freedom fades
forever from this nation.
This is the core truth: The sheer availability and centralization of tax money in our federal Capital has distorted,
perverted and corrupted the core design and processes of our constitutional republic, our political system and our
social order.
This money has provided one-stop shopping for corporations, financial interests and political operatives to feast
at the federal tax trough. Indeed, no sin against the People is too great to fulfill the machinations of Washington's
chosen to control life itself for all Americans and bestow favor and influence on those that pay tribute to them.
We The People of this country have paid the price. We have lost our rights. We have lost our property. We have
been enslaved to a system of money predicated upon debt. We have lost the right to defend our families or
ourselves. We have lost the right to due process. We have lost the right to keep the fruits of our labor - our
property. Our states have effectively devolved into mere "departments" of a federal bureaucracy. Our
communities are endlessly plagued with social decay and disorder.
Our families falter under staggering tax bills and debt loads. Our nation is going to war without a vote - a
declaration of war - by our representatives. They pass a "Patriot" act that strips our rights even further.
With the government's permission bankers, insurers and government agencies monitor us without limit, and
without a warrant based on probable cause. They track every nickel we spend, every asset we possess, every
phone call we make and every internet site we view. We have a federal ID number that is required to buy, sell or
travel upon a public road. Even our churches are "prohibited" from engaging in public dialogues on these serious
"political" matters without risking their tax-exempt "license" from the IRS.

We The People...
And now, despite the plain language of the very 1st Amendment to the Constitution - our government has
defiantly denied us our right to petition our servant government.
This single act ought to send shivers through every citizen of this nation. This single Amendment clause is what
explicitly insures that government always remains subservient and responsive to the sovereign People.
The final, public proof of despotism has now been laid bare for all to see.
Our nation is in grave danger - but it is not foreign "terrorists" we should fear.
History records that there are very few moments where one's duty cannot be made clearer.
We are now at such a moment.
IT IS TIME TO RESTORE POPULAR SOVEREIGNTY
As the Declaration clearly states, it is We The People that possess the ultimate power as Creation's children to
alter the form of our servant government at our sole discretion. It is time to proclaim, reclaim and exercise this
divine right.
It is time for the talk to end. It is time for the lobbying to end. It is time for bureaucratic maze-walking to end. It
is time for impotent legal actions to cease. It is time for well intentioned rights groups and fledgling political
movements to end their disorganized and ineffective flailing.
We must face these facts: Our elected representatives ignore our pleas and petitions. Our courts provide no
justice. The corporate controlled media pretend we aren't there. Our political system is beyond repair. Our elected
leaders and bureaucratic agencies have little stomach for the changes the People demand to return this nation to
Constitutional order. In short, the institutions and vehicles of tyranny will not retreat unless, and until, they are
compelled to.
It is time for a show of force. Our force. It is government's turn to fear the People.
It is time for individuals, rights groups, veterans, homemakers, farmers, business owners, students and every
citizen across this nation to DO SOMETHING and employ a cohesive strategy based upon force. It is time to
publicly declare our loyalties, stand together and move in unison. It is time to reveal the true power of We The
People.
It is time to send a message. It is time to send a "shot across the bow" of the pirate ship "USS Tyranny." It
is time to DEMAND FREEDOM.
Every rights group, every person that has ever complained about the "system" or the "injustices" or the lawyers or
the bankers needs to "put-up" or "shut-up." This is not about "left" or "right." It is not about parties or elections or
liberal or conservative. It is not about a particular right. This is not about waiting until my organization or party
passes the "right law" or gets the "right person" elected.
This is a profound moment when we must ask whether we are still a nation founded and operated under the rule
of law and divine right or we are nation of political expediency and corporate favor.
This is about whether we side with the views of law professors from Harvard that proclaim that we "We have NO
unalienable rights" that the Constitution is "merely a piece of paper" and that "Government should not be
restrained because it can do good things for people."
This is about whether ANY of us today live in a nation still ruled by a written Constitution.
Do we have a Constitution or not?
The risk posed to We The People by the realities we are exposing far surpasses ANY threat that can possibly be
posed by ANY political ideology, foreign force, electoral outcome or "act of terrorism."
This is about ALL of us coming together as we never have before, and should never have to again. The Republic
is broken and failing quickly. This may be among our last, practical peaceful options.

We The People...
The Freedom Drive has been conceived and birthed for all the People and every freedom aligned organization to
rally around. It is non-political. It is non-issue. It is public. It is big. It is designed to be a peaceful, substantial
show of popular force that the media and government cannot ignore -- and only do so at their own peril.
IT IS TIME TO TAKE THE DRIVE
If you've got a better idea - GO DO IT.
If you can't afford a few hours or days off work to save this nation and your children's unalienable rights - live
with the future you get.
If you think you need to wait for your stocks to recover before you will contribute - get ready to explain to your
grandchildren how we lost our freedom.
If you think you can elect some person or pass some law that will magically fix these problems - we're not
waiting. We cannot "vote" our way out of this problem.
If you're too scared to be a real American - we understand - it's a whole lot easier to wave a flag, isn't it?
THIS IS THE MOMENT - WE WILL LIVE WITH OUR CHOICES FOREVER
We either exercise our remaining rights, in unison, en masse, or we will perish as a free nation and the last
significant flame of freedom on this planet will be forever extinguished.
Ultimately, nothing of this Earth is more important than individual freedom. It is a divine gift, it is the basis for a
just and spiritual social order and it is the impetus behind all things of man that are righteous and good. As those
who have passed in its defense know, it is worth everything.
The Freedom Drive must become a priority in your life. Help us unfurl our collective force in Washington
on Thursday, November 14th.
THIS IS OUR MESSAGE:
1. The Constitution is more than a piece of paper. The People will not let it become a dead letter.
2. None of the unalienable rights of the People are subject to modification or seizure by the government.
3. The government is limited by the words of a written Constitution. These limitations and words are not open
to interpretation or negotiation except by modification of the Constitution.
4. There are legions of People who will now stand to defend their Rights, Liberties and Freedoms and the
essential principles of "popular sovereignty" and "government of, by and for the People."
5. After being summarily ignored, the People now understand it is their duty to meet force with force to
defend against the government's unconstitutional attempts to seize power from them.
6. Our elected leaders have a moral, ethical and legal duty to uphold our Constitution and their oaths of
office. They ignore these clear and unambiguous legal duties at their own risk and at the risk of this
nation's future. We The People will hold them accountable.
WHAT CAN I DO?
A. Commit to drive to DC and exercise the force that inherently belongs to the People. Publicly declare your
commitment and sign-up on the website. Tell us (briefly) WHY you are "taking the drive." Your comments
will be displayed for all to see. Make your plans. Get your affairs in order.
B. Make everyone aware of this crisis: your church, your co-workers, your family, your neighbors. Spread
the word. Distribute flyers. Learn the details. Hammer the media.
C. Join the WTP Congress. We need a functioning organization to effectively mobilize and coordinate our
force. There is much to do before the Drive in November. We need those with energy, organizational
skills, media contacts, management abilities, financial resources, creative gifts, social networks and a pure
unadulterated thirst for freedom to join us and lead the Drive.
D. Commit your organization. Get your corporation, church, business, synagogue, union -- any organization
that cares about freedom -- to publicly sponsor the Freedom Drive. (See the sign-up page.) Sponsor a few
employees - donate vacation time to a pool so that others can take time off and go to DC. Publicize it in

We The People...
your company newsletters, talk about it from the pulpit, allow people that come to your building to put
flyers in your employee's mailboxes. Declare your public support to your customers large and small.
E. PLEASE contribute money. This is an incredible, nationwide undertaking. No matter how many people
we have to help, at some point - there is no substitute for money. We need to purchase large amounts of
advertising, billboards, radio commercials, internet ads, etc. We trust you will judge both this Foundation's
proven record, as well as the personal commitment and demonstrated sacrifices of Bob Schulz in
determining whether we have delivered value for your investment in freedom. Let your dollars do things
you could not do alone. Let you dollars tread where you might not.
THE DETAILS: Freedom Drive 2002
Freedom Drive 2002 will commence Veterans' Day weekend this November on the West Coast and arrive in DC
at noon, on Thursday, November 14th.
New details of the Freedom Drive route, rally cities, schedule details are now available.
Individual drivers and organization sponsors can all sign up from our main Freedom Drive information page.
Click Here to go to the Main Freedom Drive information page.

http://givemeliberty.org/freedomdrive/
More Defiance Brewing

Larken Rose: "Please Prosecute Me."
As reported before, on June 17th, Bob Schulz told the government: "No more. Enough is enough. No answers, no
taxes."
Schulz sent the IRS a letter publicly announcing his personal convictions and decision to terminate his filing of
income tax returns and his decision to stop paying the tax.
Now comes Larken Rose, author of an articulate website on IRC code section "861" openly taunting the
government to prosecute him for failure to file. Rose has documented exhaustively that the laws -- as written --
exempt ALL domestic income from taxation.
In his open letter to government officials that is being widely disseminated, Rose begins:
"Dear Federal Government,

PLEASE PROSECUTE ME.
I, Larken Rose, have not filed a federal income tax return for 1997 or any subsequent
year. This is not because I am protesting any law, or because I do not want to pay my
'fair share;' it is because I refuse to be a victim of the biggest financial fraud in history.
I also refuse to remain silent while government lawyers illegally defraud my fellow
Americans."

We The People...
Rose continues, (after some discussion of section 861)
"I will not stand by and allow myself, my family and my neighbors to be extorted
simply because some power-happy bureaucrats huff and puff about all the nasty things
they will do to anyone who does not 'comply' with the IRS' misapplication of the law.
To the DOJ and the IRS I say this: You know I am among the most vocal about this
issue.
"Stop terrorizing the American public, and come get me. Make an 'example' of
me. Surely if my position is 'frivolous' and completely devoid of merit, then the
DOJ attorneys can easily refute my position in front of a jury, and have me
convicted and imprisoned...
So take your best shot."
Although the government labels any discussion of this matter as "frivolous", questions about the statute's
applicability have never been directly decided by a federal court. As with the Foundation's repeated demands for
answers, IRS and DOJ also refuse to answer Rose's specific legal legal charges.
Again this Foundation asks: What is a free People to do?
Click Here to read Rose's full "Please Prosecute Me" letter.
Click Here to learn more about the Schulz "Tax Termination" package. You can receive one for a modest
donation to the We The People Foundation for Constitutional Education.
http://www.givemeliberty.org/mailroom/2002-06-23.htm
Last Batch of Congressional Responses

The "Hot Potato" Syndrome
On April 15th, people from all over the country met in Washington DC and delivered a packet of
documents to all 535 members of Congress. Each packet included letters from constituents respectfully
asking Congress to fix the problem of the fraudulent and illegal income tax, and a record of the
Citizens' Truth-In-Taxation Hearing (which was held on February 27th and 28th).
Approximately 3,300 such constituent letters were hand delivered to the offices of the congressmen. In
each case, an aide to the congressman was made to sign a form signifying his/her receipt of the
materials. In each case, the person who delivered the packet signed a proof of service form.

We The People...
The purpose of the activity was to put each and every congressman in the position of NOT being able to
claim he/she did not know about the People's petition for redress of grievances regarding the income
tax. There exists no excuse for not knowing the causes which impelled the people to eventually engage
in civil action against the income tax.
Something very strange is going on.
An astonishing 470 congressmen, including Senators Hillary Clinton and Charles Schumer from New
York, have decided to ignore their constituents altogether, by not responding - at all - to the thousands
of constituent letters that were hand delivered to their DC offices.
After two months, this Foundation is aware of only 65 congressmen who have "responded" to their
receipt of the April 15th demand letter and record of the Hearing. As can be seen in their
correspondence, the congressmen have ignored the sum and substance of the petitions they received
from their constituents.
No congressman has directly addressed the substantive legal evidence and sworn testimony from the
Hearing.
No congressman has directly responded to the petitions for redress as manifest in the constituents'
letters.
No congressman reviewed the record of the Hearing.
What is painfully obvious is the fact that each and every congressman has treated the packet as they
would a very, very hot potato --- they are unwilling to handle it.
If the subject matter was not a matter so critical to our nation, many of the congressional responses
would indeed be laughable.
On April 28th, this Foundation posted the first three letters received from Congressmen. See our
previous article entitled, "Congress Begins to Respond: Early Returns Deserve Censure."
On May 15th, we posted the letters received by constituents from eighteen other Congressmen. See our
previous article entitled, "More Congressmen Respond. More of the Same: Insolence."
Since May 15th, we have received copies of "responses" from forty-four other Congressmen. These we
post herein for the record.
Congress has "responded." History will judge its responsiveness.
We the People are left with two questions:
1. Why are our elected representatives acting this way? And,
2. What must a free people do when faced with a government that will not respond to the People's
petitions nor justify behavior that is clearly an abuse of its legal authority?
In answer to the first question, Bob Schulz suggests that each congressman has been told - in no
uncertain terms - by his party leaders that, "Nothing, not even the Constitution, can be allowed to get in
the way of revenue collection or the continuation of the 'status quo'."
In answer to the second question, please be advised that in our next article we will detail what we
believe to be appropriate reactions for the People to take. NOTE: You may want to leave your calendar
open from Veteran's Day to Thanksgiving
In closing, we remind everyone that in order to be effective, the People's reply will have to be
undertaken by the numbers. Once again, this will require county-by-county organization and personal
commitment. It is the We The People Congress that will enable and facilitate this nationwide, collective
effort.
If you haven't already done so, please join the People's Congress and consider volunteering to be a

We The People...
county or state coordinator.

The most recent congressional responses follow. To view a response, click on the congressman's name.
(Note: All letters below are in .PDF format, and require the free Acrobat Reader, which you can download here.)
ALASKA Sen. Frank Murkowski

ARIZONA Rep. J.D. Hayworth
Sen. Jon Kyl
CALIFORNIA Rep. Pombo
Rep. Ken Calvert
Sen. Dianne Feinstein
Rep. Elton Gallegly
COLORADO Rep. Mark Udall
Rep Thomas Tancredo
CONNECTICUT Sen. Joseph Lieberman
FLORIDA Rep. Dave Weldon
Rep. Michael Bilirakis
Rep. Porter Goss
GEORGIA Rep. Nathan Deal
IDAHO Rep. Butch Otter
ILLINOIS Rep. Peter Fitzgerald
IOWA Rep. Leonard Boswell
MARYLAND Sen. Barbara Mikulski
MICHIGAN Rep. Nick Smith
MISSOURI Sen. Christopher Bond
MONTANA Sen. Max Baucus
Rep. Denny Rehberg
NEVADA Rep. Karen Thurman
Sen. John Ensign
Sen. Harry Reid
NEW JERSEY Rep. Steven Rothman
Rep. Rush Holt
NEW YORK Rep. James Walsh
Rep. John McHugh
Rep. Steve Israel
Rep. Felix Grucci
Rep. Thomas Reynolds
NORTH CAROLINA Sen. John Edwards
NORTH DAKOTA Rep. Byron Dorgan
Rep. Earl Pomeroy
OHIO Sen. George Voinovich
SOUTH CAROLINA Rep. Lindsey Graham
TENNESSEE Rep. Ed Bryant
TEXAS Rep. Dick Armey
VIRGINIA Rep. Bob Goodlatte
WEST VIRGINIA Rep. Shelly Moore Capito
Sen. Robert Byrd
WISCONSIN Sen. Herb Kohl
Sen. Russell Feingold

We The People...
Schulz to Feds:
No Answers, No Taxes.
"The Gloves Are Off. Enough is Enough."
Bob Schulz, Chairman of We The People Foundation for Constitutional Education today released a
letter sent to his regional IRS processing center, IRS Commissioner Rossotti, President Bush, Speaker
Hastert and Senate Majority Leader Daschle declaring his total commitment to personally instigate
sufficient civil action across the nation to end the income tax as we know it.
Schulz's letter publicly proclaims and staunchly states that after 45 years of willful compliance he
now refuses file a tax return for 2001, 2002 and for all future years.
Citing the record of the Citizens' Truth-In-Taxation Hearing and the government's steadfast refusal to
answer the Foundation's well-documented charges that the income tax system is fraudulent in its
jurisdiction and is unlawfully enforced against the American people, Schulz said, "The gloves are off.
Enough is enough. The evidence phase is over. I will now do everything in my power to mobilize the
People in defense of our rights. Our children and our neighbors are entitled to constitutional governance
carried out in decency and good order."
Our liberties have been seized. I call on all right minded citizens to do something - now! Spread the
word. Join the We The People Congress. Sign up for duty as a county or state coordinator. Get ready to
act."
Schulz's letter chastises the government for its blatant disregard of the Constitution and his absolute
right, as a sovereign citizen, to a formal response from the US Government to the petition for redress of
grievances regarding the income tax system.
This letter marks the beginning of a large, orchestrated campaign of civil action designed to bring this
conflict to the forefront of the nation's consciousness and thus, to force the IRS to stop forcing
employers to withhold the tax from the paychecks of their employees and to stop forcing people to file
the insidiously intrusive tax returns and to pay this abominable tax.
Hundreds of We The People Congress coordinators and thousands of supporters across the country are
expected to personally assist specific action initiatives and to build a mass movement capable, as
Schulz declares, "of putting the government back in its box."
The plan is designed to utilize proven techniques of a pro-active, non-violent, mass-movement, all
meant to raise the level of public awareness and knowledge of what is really going on in government
and bring it to heel.
"The government leaves us no choice," said Schulz. "We have documented their crimes, the abuses and
the mechanics of the fraud. We have petitioned. We have pleaded. We have supplicated. We will not
grovel. Make no mistake -- we will not passively give up our freedoms to the repugnant acts of a
dishonest government."
Details of the civil action plan will be released following additional preparations over the next week.

We The People...
Schulz plans to spend the foreseeable future traveling around the country meeting with liberty-minded
groups to line up support for and participation in the civil action.
Schulz concluded, "There is no middle ground. We have a Constitution or we don't. We are free or we
are not. We are soon to find out where the People stand on the issues of citizen vigilance and the matter
of our rights, liberties and freedoms."
Click below for Schulz's letter to the Federal government. PLEASE pass it on. Tell your friends and
coworkers and monitor www.givemeliberty.org for updates and developments.
Click here to read Schulz's letter
February 2, 2002
An Appeal to Every Organization That Stands For Liberty

The Time Has Come For Us to Stand Together
I am writing this letter to ask for your help.
As you may know, We The People Foundation For Constitutional Education, Inc. has been working diligently for years to expose
the grave danger that bloated, wasteful and out-of-control government poses to our unalienable rights as Americans. This appeal is
being sent to the leaders of every major organization that is fighting to defend our Constitution and Bill of Rights, and ultimately,
the very survival of our Republic.
Who can deny that we have reached a critical juncture in the life of our Country? The size, scope and power of the federal
government have become so vast that virtually every aspect of our lives is monitored, regulated, documented and controlled. We
are asking those organizations, like yours, that have been courageously leading the fight for freedom and the return to our nation's
founding principles, to now stand together and speak with a common voice.
Notwithstanding our different and sometimes competing missions, we must acknowledge that divided and separate, we will never
achieve the critical mass or the momentum required to restore our rightful liberty. We must acknowledge that academic rhetoric
and abstract political debate have failed to hold our servant government in check.
This is an appeal to all patriotic organizations across our nation that stand guard over the flame of liberty. We ask that you join us
in this unprecedented effort to bring all major freedom organizations together with a common focus and purpose…to restore the
authority of the United States Constitution and Bill of Rights as the foundation for our system of government in America.
We The People Foundation would like to invite you and your senior representatives to be our guests at a private dinner and
informal discussion session on February 27, 2002, at 6:00 p.m., at the Washington Marriott Hotel. We will have a guest
dinner speaker, and afterwards conduct an open discussion of how freedom organizations can work together to create a powerful
and effective force for liberty that is greater than the sum of its parts.
How many of our unalienable rights have already been completely lost or seriously eroded by an overreaching and power-hungry
federal government?
The right to privacy

The right to property
The right to a public trial
The right to a speedy trial
The right to a trial by a jury
The right to due process of law
The right to a fully informed jury
The right to keep and bear arms
The right to freedom from vote fraud
The right to freedom from taxes on wages

We The People...
The right to a republican form of government
The right to a politically independent judiciary
The right to freedom from involuntary servitude
The right to confront the witnesses against you
The right to freedom from government acts not enumerated
The right to freedom from searches without probable cause
The right to a monetary system backed by a precious metal
The right to petition the government for a redress of grievances
The right to freedom from laws that favor public over private education
The right to freedom from being forced to be a witness against yourself
The right to freedom from searches and seizures without proper warrants
The right to freedom from the "same hands" controlling all three branches
The right to freedom from having property taken without just compensation
The right to freedom from federal laws in areas outside of federal jurisdiction
The right to freedom from the imposition of direct taxes not tied to the census
The right to representation loyal to the constitution rather than to a political party
The right to freedom from having an appeals court re-examine facts tried by a jury
The right to freedom from the use of the armed forces without a declaration of war
The right to freedom from constitutional amendments not ratified by ¾ of the States
The right to freedom from the usurpation of the powers of the Congress by the Executive
Now is the moment for those who deeply love our country, and what it truly stands for, to set aside their differences and
unite in defense of our Constitution and rightful liberties as Americans.
No single freedom organization in the country has the influence, resources or capability to stem the tide of government tyranny
alone. But together we have the mass, the scale, and the power to bind our servant government down with the chains of the
Constitution. We need only to find the courage to live the convictions of our hearts, the wisdom to look beyond the immediate
obstacles in our path, and the confidence that the Master of the Universe will once again reward our vigilance with the blessings of
liberty.
Each freedom organization has its own mission, purpose and strategy. Whether the organization is devoted to the protection and
preservation of our 2nd Amendment right to keep and bear arms, or our 1st Amendment right to petition our government for redress
of grievances, the issue that ultimately ties us all together is the defense of our Constitution and Bill of Rights. If every freedom
organization that usually concentrates on just one of the aforementioned rights decided to unite and focus on a single constitutional
violation, consider the possibilities. The critical mass of influence would be overwhelming.
WHY AM I REACHING OUT TO ALL LIBERTY RIGHTS GROUPS?
As you may know, the Foundation is engaged in an extraordinary struggle to hold the federal government accountable to the First
Amendment's guarantee of every citizen's right to properly petition the government for a redress of grievances and the
government's obligation to properly answer. In our case the grievances relate to the constitutional and statutory authority of the IRS
to force employers to withhold the income tax from the paychecks of their employees and the legal authority of the IRS to force
most citizens to file a tax return and to pay the tax. The most probable outcome of the Foundation's success in this struggle will be a
more constitutionally limited government--an objective that we all share.
We do not expect any of the freedom organizations that are being invited to join us for dinner and discussion on February 27 to take
a position for or against any of the propositions relating to the fraudulently assumed jurisdiction of the IRS and the unlawful
income tax system. We do, however, hope to achieve support for our position that Americans have a constitutionally protected
right to petition our servant government for redress of grievances, and a right to demand that the government respond openly and
honestly to that petition, for without the right to petition the government for redress of grievances then, in practical effect, the
people have no rights at all.
While the leaders and members of all liberty rights and freedom organizations are invited to register to attend the tax hearing on
February 27 and 28 (it's free), we sincerely hope that a representative from each group will register to attend the special "UNITY
DINNER" on February 27, which is also free of charge (although the Foundation would not turn any donations away ).
For more information on the Foundation and our Petition for Redress of Grievances relating to the federal power to tax, please visit
our website, www.givemeliberty.org.
Please note that preferred registration status for the daytime tax hearing will be given to leaders and senior representatives of liberty
rights organizations.
Even if you choose not to attend, please consider the impact you may have by spreading the word of this initiative throughout your
organization's membership.
I look forward to seeing you in Washington.
Robert Schulz

We The People...
Chairman
We The People Foundation
for Constitutional Education, Inc.
2458 Ridge Rd.
Queensbury, New York 12804
(518) 656-3578 phone
(518) 656-9724 fax
www.givemeliberty.org
mailto:Bob@givemeliberty.org
The following letter is from John Turner, ex-IRS Agent.

http://www.givemeliberty.org/features/2002febHEARING/update01-28-02.htm (see below)
Friends,
I refer you to the above URL. Some of you, no doubt, have been following this saga as it has progressed. Others, may have little or no awareness
of what has been transpiring during the last 2-3 years.
There is an opportunity for each of you to be involved to some degree, significantly or to a lesser extent. Your support is sought in whatever way
you can see fit to participate. Obviously, your physical presence in Washington D.C. in late February and/or April 14th would be in the category
of "significant". Realistically, not all of you will be able to be there; not all of you will even be inclined to be there. Hopefully, many of you will be
as creative as need be in order to be there. Perhaps you can join with another family or friends and rent a motorhome for that week, whatever it
takes.
As you see, there is ample opportunity for you to contact the key government people by letter, fax, email or phone. Please do so.
At the very least, sign the petition to help demonstrate that there really is a significant number of people who have serious reservations about the
federal income tax and the way that it is administrated.
We all have different levels of experience and frustration with IRS and the income tax.
For some, a trip to the nation's capital would be too much for the family budget to endure.
Fear is a factor for almost everyone. We have arrived at the point where we believe that just speaking out about the income tax will somehow get us
on a list and "in trouble".
Whatever it takes, we must move past the challenges: "the government is too big and powerful, it won't do any good; I am afraid; I can't afford it",
etc.
It does not matter whether you agree with all of the strategies, tactics, or even the legal arguments being presented. That will never happen - we
can't all agree on everything. Hopefully, what we can agree on is that the income tax has been portrayed to the American people as something other
than what it really is. That's putting it mildly, and we ought to all be able to recognize that, and have that be at least the minimum motivation we
need to participate.
I've not previously issued such a plea as this. I've been content with the notion that people will either become convicted and moved to support this
movement or they will not, for whatever reasons. I still believe this to be the case, however, I am making a concerted effort requesting that each
of you get involved.
Please identify for yourself the comfort level that will allow you to participate in some way.
Find the opportunities to participate that make sense for you and get involved.
We are not content to see the income tax eliminated simply to be replaced by some other equally repugnant system. It is my opinion that our
income tax is constitutional, even with the case made that the 16th amendment was not properly ratified. However, it has been foisted upon us in
such a way that it appears to be required for just about anyone and everyone. Nothing could be further from the truth. Some say it is un-American,
unfair and needs to be eliminated. Others, say it doesn't apply to most of us living in America who are simply earning paychecks. Either way, it is
time for the fraud to be exposed at a much higer level. Between the IRS, the courts, the banks, employers, and modern systems of reporting and
tracking technology, it has become difficult, practically impossible for a person to do anything about it. Our system requires overhaul in areas not
just limited to income tax. Our system of money and banking has direct ties to the income tax. The time has come to elevate the income tax fraud

We The People...
to the highest level of political debate and activism. In order for that to happen your support is required.
One last thing in closing. Some of you are familiar with me and my background. Since I am hoping that each of you will forward this email to the
people you know, it will be reaching many people who don't know me or my situation. Please allow a very brief explanation. For nearly ten years
(1987 - 1997) I was an IRS revenue officer (field collection agent). In early 1997 I was challenged to disprove certain claims about the income tax.
Expecting to be able to easily refute the claims, I accepted. Three months later I quietly resigned. I discovered that the income tax is
being administered improperly and that I did not enjoy the authority to take enforcement actions against people's property - as the government had
trained me to believe. There was no way, being privy to information that was new to me, that I could continue in that capacity. I left IRS with a
good record, with no "sour grapes". I hold no grudge against IRS or our government. I simply believe that our income tax is being portrayed as
something it is not. The consequences of that are so significant that it can no longer be ignored. Yet, that is what congress, IRS, and the DOJ are
doing. They are ignoring sincere, honest demands to address these concerns. Your help is needed to raise awareness to a high level.
Sincerely,
John Turner
(time4jt@worldnet.att.net)
U.S. Government Officials Refuse

To Answer Questions on Legality
of the IRS and Income Tax System
[January 28, 2002] Congressman Roscoe Bartlett (MD), Assistant Attorney General Dan Bryant,
and IRS Commissioner Charles Rossotti have broken their written agreement with the American
People and have betrayed the United States Constitution.
WE THE PEOPLE NOW DEMAND THAT THE GOVERNMENT RESPOND TO
IRREFUTABLE EVIDENCE THAT PROVES THE FRAUDULENT ORIGIN OF THE IRS AND
THE UNLAWFUL ADMINISTRATION AND ENFORCEMENT OF THE INCOME TAX
SYSTEM AGAINST AMERICAN CITIZENS.
We Now Have A Constitutional Crisis
It has come to pass that our public servants in the federal government no longer recognize nor respect the
United States Constitution or Bill of Rights. With sorrow and resolve, we hereby acknowledge the grave
danger that is upon our nation. With a unified and resounding voice, the American people must now
speak to our servant government. We will not forfeit our dignity to unjust rulers. The working men and
women of America are not indentured servants, and will no longer toil under this unjust and unlawful

We The People...
system of taxation in our own land.

We will not permit arrogant and unaccountable government officials to violate our most sacred rights to
life, liberty and property . under the pretense of caring for us. We are a free people who hold to the rule
of law, and are devoted to the eternal principles of truth, equality and justice. As such, we hereby
demand our rightful sovereignty as American citizens and the attendant blessings of personal freedom
and responsible citizenship that are our birthright.
We the People now demand that the government respond in a recorded, public forum to our petition for
redress of grievances regarding the fraudulent origin of the IRS and the unlawful administration and
enforcement of the person income tax system against American citizens.
Read The Full Article
Stand Together and Be Counted

Register for the Tax Hearing
Invitation to learned persons to answer the questions
How You Can Help End the Crisis
Wait to File Until the Trial!

Read our letter that's being mailed to 300,000 people
Read our newspaper Ad (pdf - 333K)
Read this message at our website:

http://www.givemeliberty.org/features/taxes/waittofile.htm
The We The People Foundation for Constitutional Education has launched Operation "Wait to File Until the
Trial." This effort is to inform as many Americans as possible that:
● The very legality of the U.S. income tax system goes on trial February 27th at a congressionally
sponsored public hearing on Capitol Hill. This historic event is the result of a three-year effort by the We
The People Foundation For Constitutional Education and thousands of supporters nationwide.
● At the 2-day hearing, we expect to prove conclusively that the IRS does not have the legal authority to
force employers to withhold taxes from the paychecks of their employees, or to force most Americans to
file a return or pay the income tax.
● If the research is confirmed publicly, most Americans may be entitled to a refund of 100% of the income
tax paid or withheld in 2001.
● All Americans should wait until the public hearing before they file their tax returns. Hear the facts.
Judge the truth.
Over the next several weeks we intend to announce Operation "Wait to File Until the Trial" to tens of
millions of Americans. To accomplish this objective, we will conduct a comprehensive nationwide media and
direct mail campaign on several different fronts concurrently. Efforts are currently under way to place
high-impact "Wait to File" ads in USA TODAY and other major newspapers. Our direct mail initiative will be
targeted at a broad cross-section of individuals, professional associations, political groups and institutions.

We The People...
Our media and direct mail campaign is expected to generate a critical mass of awareness about the February
27th hearing, and promote heightened nationwide interest and discussion of the event. The initial direct mail
effort will target several hundred thousand individuals and numerous professional and political organizations
nationwide, including but not limited to the following:
● American Institute of Certified Public Accountants. Considering that it is tax season and these folks
have a vested interest in keeping the IRS and income tax system alive and well, our ad should create
quite a reaction from this group-and possibly some free media attention.
● Tax section of the American Bar Association. Another IRS-aligned group that should react vocally to
the ad.
● National Federation of Independent Businesses
● Libertarian Party national member list.
● Every U.S. Senator, Congressman, Supreme Court Justice, Federal Court Judge, Executive
Cabinet Member. Every State Representative in all 50 states.
● Every talk radio show host in America.
● The editors of major newspapers across America.
● The editors of major magazines and nationally distributed print media.
To succeed in this unprecedented effort to inform the American people about the unlawful income tax system,
and to conduct the hearing in Washington DC on February 27th, we need the support of tens of thousands of
citizens. Freedom is not a spectator sport. For all those who love our country and the principles of truth, justice
and personal liberty, we now have a choice. We can remain forever enslaved to this unjust, unlawful income tax
system, or, WE THE PEOPLE can change it.
To view a copy of the "Wait to File" newspaper ad, click here.
To view a copy of the letter being mailed with the ad to approximately 300,000 citizens, click here.
How You Can Help

Make a donation.
Please help us in this historic fight for freedom. The personal income tax has no place in a society that believes
in equality, fairness and the rule of law. The personal income tax has destroyed the integrity of our
Constitutional form of government and undermined our birthright as Americans-our right to life, liberty and
property. With courage and determination, we can, together cause the bell of freedom to ring once again in
America. No person associated with We The People Foundation For Constitutional Education receives
any form of compensation for our work. Your financial contribution to this cause will go directly to
the "Wait To File" national media campaign, newspaper ads, web ads, costs to produce the
Washington Hearing on February 27th, etc. We must stand united in this cause. If you do not help, who
will? Time is of the essence. Please consider a wire transfer or credit card donation.
Get the word out: WAIT TO FILE UNTIL THE TRIAL!
Print, copy, e-mail and distribute the "Wait To File" ad.

Tell your co-workers, friends and family about the February 27th Hearing.
Call your local radio talk show hosts and news desks.
Call financial columnists in your local papers. Ask them to write a story.
Run the ad yourself in your local shopper or paper.
Run small ads in the messages section of your classified advertising
(example: "Wait to File Until the Trial"! www.givemeliberty.org)
Put copies out in supermarkets, truck stops, etc.
Hand out copies in front of tax preparation services.
Be imaginative!
Encourage people to visit our web site for details: www.givemeliberty.org.
Contact the media.
Ask them to cover the trial. Write a letter to the editor.
Go to the website: http://capwiz.com/washtimes/. Under "Guide to the Media", fill in your zip code. The media
contacts in your area will appear + Letters to the Editor.
Contact your Congressmen.
Ask them to attend the hearing, then fix the tax problem.

We The People...
Phone the Capitol: 800-648-3516. Ask to be connected to your congressman's office.
Go to the website: http://capwiz.com/washtimes/. Under "Elected Officials", fill in your zip code. All contact
information for your Senators and Representative will appear: phone, fax, addresses, and e-mail links. CALL,
WRITE and FAX (e-mails are largely ignored).
Contact the President.
His "Comment Line" number is 202-395-3000.

Speak to a live operator. Tell her you expect straight answers from the government at the income tax trial on
Feb 27th and 28th.
Fax The President: Fax: 202-456-2461.
Write the President: The White House, Washington, D.C. 20500.
E-Mail the President: president@whitehouse.gov
Contact the IRS and the Department of Justice
Demand that they "Show you the law!" at the hearing!

Demand that they uphold their oaths of office and the Constitution!
DOJ E-Mail web@usdoj.gov
Web Site www.usdoj.gov
Phone (202) 514-2000
Address 950 Pennsylvania Ave NW
Treasury E-Mail opcmail@do.treas.gov
Web Site www.ustreas.gov
Phone (202) 622-2000
Fax (202) 622-6415
Address 1500 Pennsylvania Ave NW
IRS Web Site www.irs.gov
Phone (800) 829-1040
Address 1111 Constitution Ave NW
Watch the Hearing Yourself - Get the Evidence!
Much expense has gone into producing a live, gavel-to-gavel webcast of the 2-day Washington hearing. You will
be able to see and hear the IRS and DOJ witnesses as well as print out copies of the evidence as it is
presented. VHS and CD-ROM copies of the hearing will also be made available. For details visit
www.givemeliberty.org.
Remember: Phone calls, faxes & mail to public officials are much more effective than e-mail.

We The People...
Truth in Taxation Hearing

"Boston Tea Party II"
A Congressionally Sponsored Public Hearing
to Interrogate the IRS and DOJ
Presented by
We The People Foundation for Constitutional Education, Inc.
Chairman Bob Schulz
What: Internet Webcast of an Historic Income Tax Hearing
Who: We The People Delegates, Tax Researchers and Attorneys will
interrogate legal and tax experts from the DOJ and IRS
Don't Miss This Historic Event

http://www.givemeliberty.org/store/webcast/
The Fast is Over!

The fast ended Friday (7/20/2001) afternoon following receipt of the official U.S.
Government commitment to answer the researcher's tax questions.
"I wish to thank every person who helped in this effort. It could not have happened
without prayer power. This was evident the moment we walked into Rep. Bartlett's office.
Faith in God, Country and the People of this Nation will ensure we prevail. Again, I Thank
Everyone. Thank you all." - Bob Schulz
After arriving home late Saturday evening, an excited Bob remarked, "It's great to be
home. I love my land. I love my home."
Since Sunday, July 1st, Robert Schulz, a leading advocate for lawful government for over twenty years, has
been in Washington, D.C., fasting. He will fast either until he dies or until the IRS agrees to send experts to
a public forum to refute evidence of researchers from the Tax Honesty Movement as to their allegations of
the unconstitutionality of the federal income tax system, and its unlawful enforcement. To date, the IRS
has abdicated its duty to the People of this nation by refusing to respond to any of this evidence - all of
which is based on independently-verifiable historical and legal research and empirical data. Robert is a
sincere Christian. The IRS must agree to a public debate on September 18th, or within 45-60 days from
July 1st, Robert will be dead! If the IRS agrees, prior to Robert's death, he will stop his fast. Keep in mind
that according to medical studies, more than 30 days of fasting will lead to permanent body damage.
Please Don't Let This Man Die! Remember, he is fighting for

YOUR Freedom too.

We The People...
What Can You Do?

CONTACT PRESIDENT BUSH:
1. PHONE THE PRESIDENT. He has a "Comment Line", which tells citizens "your call is important to the
President", and eventually connects you to a real person. The phone number is (202) 395-3000.
2. WRITE THE PRESIDENT. His fax number is: (202) 456-2461. His mailing address is: The White House,
Washington, D.C. 20500.
3. E-MAIL THE PRESIDENT. His e-mail address is
president@whitehouse.gov. This is definitely NOT the best way to reach him, but it should be included as part of an overall strategy of covering all
bases.
CONTACT YOUR U.S. SENATORS AND REPRESENTATIVES:

The easiest way is to go to their websites: Write Your Representatives. Write Your Senators.
CONTACT THE MEDIA:

The easiest way is to go to the website: http://capwiz.com/washtimes/home/. Under "Guide to the Media",
fill in your zip code and the various publications in your area and beyond will appear from which you can
access the necessary contact information, including for Letters to the Editor.
Below is a letter you can print, sign and send to the President
as well as your Senators and Representatives.
We, the undersigned citizens of the United States of America, acting in good faith and impelled by our devotion to our
Constitutional-Republic, present this Remonstrance to the leaders of our federal government in order to draw attention to and
express deep concerns that have accumulated over many years regarding the federal income and social security tax system.
Our grievances are several:
The proof is manifest for all to see that the 16th Amendment to the U.S. Constitution was illegally and fraudulently
proclaimed to be ratified in 1913 by a lame-duck Secretary of State just days before he left office. An official attempt by a
leading, currently-sitting U.S. Senator to pay to have the evidence suppressed, to avoid publication and to maintain secrecy,
has been exposed at this meeting this day.
The federal courts for decades, ruling in cases challenging the constitutional validity of the 16th Amendment, have issued a
series of largely unintelligible rulings that fail even to recognize the basic question of whether the income tax is a direct tax
or an excise tax, suggesting, for instance, that the income tax is "in the nature of" an indirect, excise tax, reflecting the mood
of powerful special interests of that day.
Again, the federal courts since 1985, on hearing cases challenging the ratification of the 16th Amendment as being
fraudulent, have ruled that the issue of fraudulence is political and, therefore, non-justiciable -- to be dealt with by Congress.
This obviously constitutes an evasion of responsibility by the courts, since fraud is a legal, rather than a political question. In
ruling in this way, the courts have abdicated their constitutional responsibilities under our system of checks and balances.

We The People...
Congress, in turn, has called this issue of fraud to be a matter for the courts.
In addition to the 16th Amendment ratification issue, there simply is no law or regulation that makes most citizens liable to
file and pay federal income and social security taxes nor to have those taxes withheld from the money they earn, yet, the
Internal Revenue Code is enforced by the Executive as though the taxes were, indeed, compulsory, imposing interest and
penalties, including incarceration for willful failure to file the voluntary tax.
Citizens have the right to clear and precisely worded laws that are not vague. Yet, the income tax laws are deliberately
written in the most disorganized manner imaginable, with the frequent use of double-negatives, circular reasoning,
disconnected sections without reference or cross-reference, and other legal gimmicks that intentionally obfuscate and confuse
matters beyond comprehension of even highly trained professionals. It must be concluded that the U.S. Supreme Court,
which, in 1916, attempted to keep the income tax constitutional by suggesting that it was "in the nature" of an excise tax, if
required to rule today on the constitutionality of the 16th Amendment, would in no way be able to find the 1999 tax
constitutional on the simple basis that it is clearly not uniform, which is a constitutional mandate for excise taxes.
The Internal Revenue Service (IRS) says the income tax is voluntary. This is an obvious fiction. In their application and
enforcement, the tax code and the regulations have all the force and effect of compulsory law. Yet, the notion that the tax is
voluntary has been confirmed by a federal appeals court. Few people know that the tax is voluntary and that when they
"voluntarily" submit their tax forms they also "voluntarily" waive their 5th Amendment rights against self-incrimination. This
is a form of coercion to which the courts have turned a blind eye, ruling that the waiver of 5th Amendment rights was
"voluntary".
Many outrageous IRS practices have been revealed and detailed to the public by congressional hearings, but little has been
done about it.
Thousands of citizens are jailed or financially destroyed by the IRS for not paying taxes that are not expressly sanctioned by
law, while being denied their most basic due process rights. And, since the courts have ruled that the fraudulent ratification of
the 16th Amendment is a political question, by definition, those in jail are political prisoners, a condition that is illegal in this
country.
The IRS is conspicuously used by the Executive to carry out retribution against political adversaries. This is a growing threat
to fundamental freedoms.
Federal judges, members of Congress, and other government officials are themselves afraid of the IRS, which compiles and
maintains secret files on them.
The abuses and lawlessness exemplified by the governmental conduct described above undermine the foundations of our
nation and tear apart the very fabric of our Constitutional-Republic.
Therefore, we hereby petition the leaders of our federal government to take immediate and forthright action that will result in
the redress of these grievances. We call for a thorough overhaul of the IRS and its administrative procedures to make its
operations and agents completely accountable to the Constitution and constitutional law. We demand the immediate release
of all political prisoners. We call for the creation of a Judicial Review Commission to hear and decide on complaints against
federal judges who make rulings that support violations of the rights of citizens which are rooted and grounded in the
Constitution and constitutional law.
You can copy and paste the above letter into any word processing application (program) or you can download a copy.
To download this letter CLICK HERE. This is a Adobe Acrobat Reader Document (PDF- See below).
Most of the documents on this site are in Adobe Acrobat Reader format (PDF). If you do not have the FREE version of
Adobe Acrobat Reader installed on your computer, please Click the Adobe icon below.
[ HOME | DOCUMENTS | EDDIE'S SEMINARS | FAQ | RELATED LINKS | CONTACT EDDIE | SEARCH | WHAT'S NEW |
INTERNATIONAL TAX INFORMATION ]

Dear _________________,
We, the undersigned citizens of the United States of America, acting in good faith and impelled
by our devotion to our Constitutional-Republic, present this Remonstrance to the leaders of our
federal government in order to draw attention to and express deep concerns that have
accumulated over many years regarding the federal income and social security tax system.
Our grievances are several:
The proof is manifest for all to see that the 16th Amendment to the U.S. Constitution was
illegally and fraudulently proclaimed to be ratified in 1913 by a lame-duck Secretary of State just
days before he left office. An official attempt by a leading, currently-sitting U.S. Senator to pay
to have the evidence suppressed, to avoid publication and to maintain secrecy, has been exposed
at this meeting this day.
The federal courts for decades, ruling in cases challenging the constitutional validity of the 16th
Amendment, have issued a series of largely unintelligible rulings that fail even to recognize the
basic question of whether the income tax is a direct tax or an excise tax, suggesting, for instance,
that the income tax is "in the nature of" an indirect, excise tax, reflecting the mood of powerful
special interests of that day.
Again, the federal courts since 1985, on hearing cases challenging the ratification of the 16th
Amendment as being fraudulent, have ruled that the issue of fraudulence is political and,
therefore, non-justiciable -- to be dealt with by Congress. This obviously constitutes an evasion
of responsibility by the courts, since fraud is a legal, rather than a political question. In ruling in
this way, the courts have abdicated their constitutional responsibilities under our system of
checks and balances.
Congress, in turn, has called this issue of fraud to be a matter for the courts.
In addition to the 16th Amendment ratification issue, there simply is no law or regulation that
makes most citizens liable to file and pay federal income and social security taxes nor to have
those taxes withheld from the money they earn, yet, the Internal Revenue Code is enforced by
the Executive as though the taxes were, indeed, compulsory, imposing interest and penalties,
including incarceration for willful failure to file the voluntary tax.
Citizens have the right to clear and precisely worded laws that are not vague. Yet, the income tax
laws are deliberately written in the most disorganized manner imaginable, with the frequent use
of double-negatives, circular reasoning, disconnected sections without reference or cross-
reference, and other legal gimmicks that intentionally obfuscate and confuse matters beyond
comprehension of even highly trained professionals. It must be concluded that the U.S. Supreme
Court, which, in 1916, attempted to keep the income tax constitutional by suggesting that it was
"in the nature" of an excise tax, if required to rule today on the constitutionality of the 16th
Amendment, would in no way be able to find the 1999 tax constitutional on the simple basis that
it is clearly not uniform, which is a constitutional mandate for excise taxes.
The Internal Revenue Service (IRS) says the income tax is voluntary. This is an obvious fiction.
In their application and enforcement, the tax code and the regulations have all the force and
effect of compulsory law. Yet, the notion that the tax is voluntary has been confirmed by a
federal appeals court. Few people know that the tax is voluntary and that when they "voluntarily"
submit their tax forms they also "voluntarily" waive their 5th Amendment rights against self-
incrimination. This is a form of coercion to which the courts have turned a blind eye, ruling that
the waiver of 5th Amendment rights was "voluntary".
Many outrageous IRS practices have been revealed and detailed to the public by congressional
hearings, but little has been done about it.
Thousands of citizens are jailed or financially destroyed by the IRS for not paying taxes that are
not expressly sanctioned by law, while being denied their most basic due process rights. And,
since the courts have ruled that the fraudulent ratification of the 16th Amendment is a political
question, by definition, those in jail are political prisoners, a condition that is illegal in this
country.
The IRS is conspicuously used by the Executive to carry out retribution against political
adversaries. This is a growing threat to fundamental freedoms.
Federal judges, members of Congress, and other government officials are themselves afraid of
the IRS, which compiles and maintains secret files on them.
The abuses and lawlessness exemplified by the governmental conduct described above
undermine the foundations of our nation and tear apart the very fabric of our Constitutional-
Republic.
Therefore, we hereby petition the leaders of our federal government to take immediate and
forthright action that will result in the redress of these grievances. We call for a thorough
overhaul of the IRS and its administrative procedures to make its operations and agents
completely accountable to the Constitution and constitutional law. We demand the immediate
release of all political prisoners. We call for the creation of a Judicial Review Commission to
hear and decide on complaints against federal judges who make rulings that support violations of
the rights of citizens which are rooted and grounded in the Constitution and constitutional law.
Sincerely,
Austraila
Australian Income Tax Information

Most Commonly Asked ATO Questions
Use this sample to make a Freedom Of Information Act request
Use this sample to make a Privacy Act request
Most of the documents on this site are in Adobe Acrobat Reader format. If you do not have the
FREE version of Adobe Acrobat Reader installed on your computer, please Click the Adobe icon
below.
http://www.eddiekahn.com/intl/austraila.htm [1/13/2004 8:14:03 PM]

Most Commonly Asked ATO Questions
Q. Am I required to file an income tax form?

A. According to the Income Tax Assessment Act of 1915, the only ones liable for the
income tax are companies. We have not found an amendment to that Act that
includes a natural person.
Q. Is the ATO an agency of the Australian government?

A. The ATO has admitted in court documents as well as a Freedom of Information Act
response that they have no government creation document.
Q. Does the ATO have lawful authority to lien or levy property?

A. Not unless the ATO is an agency of the Australian government and you are a company
that has been made liable for the tax.
Q. Who does the ATO collect money for?

A. The commissioner of taxation is appointed by the Governor General. The Governor
General works for the queen of England. If you follow the dots…
Q. In your opinion what is the best way to deal with the ATO?
A. You are involved in a master/servant relationship. If you act like a master and treat
them as (public) servants, you will get much better results.
Q. How can I force the ATO to answer my questions?

A. When asking for your personal records, use the Privacy Act. When asking for public
documents, use the Freedom of Information Act. The law requires that the ATO
answer your query within 20 working days.
Q. Does my employer have the legal authority to take money from my paycheck without
my consent?
A. You must first be liable for the tax. See answer to question #1.
Q. As an employer, am I required by law to withhold money from my employees?

A. Australian law prohibits forced labor without compensation. If they are not paying
you at the going rate for tax collectors, you cannot be forced to work for free.
Q. What is the purpose of the income tax?

A. The tax was enacted to pay for the First World War debts. It was amended to pay for
the Second World War debts. We were unable to find any other fiscal purpose for the
tax. If you think the war Debts are paid off, you might want to contact your MP and
ask him for an accounting of the money.
The preceding statements are the opinions of Eddie Kahn, a tax law researcher from America.
The opinions were formulated as a result of his study of the Australian tax and related laws.
Australian Taxation Office
Freedom of Information
Locked bag 8025
GPO Brisbane QLD 4001
Date: ______________________
Name: ________________________
Address: ______________________
______________________
Dear Sir/Madam:
1. This is a request under the Freedom of Information Act 1982, Part 3 15(1)
"Request for Access" and appropriate legislation.
reviewing the documents for information requested below. If costs are expected
to exceed $_______ , please send estimate of costs.
reasonably segregated and provide me with indexing, itemization, and detailed

records under false pretences. I am the person making this request and my
5. Please send copies showing ____________________________________________

______________________________________________________________________
__________________________________
Signature
__________________________________
Name
Australian Taxation Office
__________________________
__________________________
__________________________
Date: ______________________
Name: ________________________
Address: ______________________
______________________
Dear Sir/Madam:
1. This is a request under the Privacy Act.
reviewing the documents for information requested below. If costs are expected
to exceed $_______ , please send estimate of costs.
reasonably segregated and provide me with indexing, itemization, and detailed

records under false pretences. I am the person making this request and my
5. Please send copies showing ____________________________________________

______________________________________________________________________
__________________________________
Signature
__________________________________
Name
Canada
Canadian Income Tax Information

Does the Canadian Tax Laws apply to you? How
would you know? Intent of the law is one of the
first things you would need to research. The
following documents were discovered during such
initial research in September, 2001. These
documents will help you to determine if the laws
apply to you. These documents were obtained at
the National Library of Canada: Ottawa.
Original Intent of the Canadian Income Tax Laws
Specifics about the intent of the Income

Tax Laws
Income Tax definitions
http://www.eddiekahn.com/intl/canada.htm (1 of 2) [1/13/2004 8:14:04 PM]

Canada
Everyone is Subject to it
No Income Tax on Aliens
Royal Majesty must give Assent
Income Tax will be Permanent
Canadian Think Tank Organization Says Tax

Burden Easing But Not Enough
below.
http://www.eddiekahn.com/intl/canada.htm (2 of 2) [1/13/2004 8:14:04 PM]

§10-1. INTRODUCTION AND TAX RATES
Canada’s first general income tax legislation was enacted in 1917 as the
Income War Tax Act, imposing a tax upon personal incomes, ranging from 4% to
25% of the amount taxable. Since that time, the proportion of Canada’s national
revenue raised by income taxation has increased from less than 5% to more than
57%. In 1970, the rates of tax applicable to individual incomes range from 11% of
the amount taxable, if the amount taxable does not exceed $1,000, to 80% of the
amount by which the amount taxable exceeds $400,000. Canada’s revenue from
income taxes for 1971 is expected to exceed $8 billion, with approximately 5.3
billion from personal income tax, 2.5 billion from corporation income tax and 0.25
billion from non-resident withholding tax.
Corporations are taxable at the rate of 18% on the first $35,000 of taxable
income, and at the rate of 47% upon all income in excess of $35,000.
In addition to the foregoing rates of tax, individual taxpayers are liable to
pay an Old Age Security Tax of 4% with a maximum tax of $240, a social
development tax of 2% with a maximum of $120 and a temporary surtax of 3% of
the amount by which his tax payable exceeds $200; corporations are liable to pay
an Old Age Security Tax of 3% with no maximum and a temporary surtax of 3%
of the tax payable. (The aggregate rates payable by corporations are 21.54% of
the first $35,000 of taxable income and 51.41% on the balance.)
§ 102. Constitutional Questions

(a) Constitutional Validity of Federal Income Taxation. The federal taxing
power—’’the raising of money by any mode or system of taxation”—is found in s.
91 (3) of the British North America Act, 1867. Since the provinces are
empowered by s. 92 (2) of the British North America Act to levy direct taxes “in
order to the raising of a revenue for provincial purposes”, the income tax field is
shared by the federal and provincial governments. The best statement of the
relationship between federal and provincial authority to impose direct taxes Is
found in the judgment of Audette J. in The King v. Caron,1 where the power of the
Dominion to impose income taxes was directly questioned:—
“The Dominion has a right, under s. 91, to raise revenue, for matters
of common Canadian concern—and for peace, order and good
government—by direct and Indirect taxation, whilst the province,
provincial purposes can only raise by direct taxation. There is no
repugnancy or conflict between these respective powers…
1
[1921] Ex. C.R. 119; 1 D.T.C. 16; 68 D.L.R. 185.
C.I.T. – Issue 52 –5/71
1021
New Zealand
New Zealand Income Tax Information

Use this sample to make an Official Information Act request
Use this sample to make an Privacy Act request
One can use the Official Information Act (OIA) to

requests all kinds of information. Here is some
information that was obtained by your peers:
This OIA asks if the Income Taxes collected by the IRD goes to the crown. This Kiwi didn't think
it did.
This is the response he got. It does in fact go to the crown.
He then asked what is the Crown. He couldn't believe the money collected appears to go to the
English Monarch.
Guess what the response was...
Mrs. Clayton, a Kiwi, asked how when and where does a person become a taxpayer? This is the
response she received. As you can see, in the second page of her response, you became a taxpayer
when you filed your first return.
http://www.eddiekahn.com/intl/newzealand.htm (1 of 2) [1/13/2004 8:14:07 PM]

New Zealand
below.
http://www.eddiekahn.com/intl/newzealand.htm (2 of 2) [1/13/2004 8:14:07 PM]

Inland Revenue Department
Commissioner of Inland Revenue
PO Box 2198
WELLINGTON
Date: ______________________
Name: ________________________
Address: ______________________
______________________
IRD# _________________
SUBJECT: OFFICIAL INFORMATION ACT REQUEST
Dear Sir/Madam:
This is a request under the Official Information Act 1982 and regulations thereunder. This is
my firm promise to pay fees and costs for locating and duplicating the documents requested
below. If costs are expected to exceed $ ___________ , please send an estimate of costs.
If portions of this request are exempt from release, please furnish me with those portions
reasonably segregable. Please expedite this request within the time prescribed by statute.
1) Please give me copies of the documents that evidence : _________________________

________________________________________________________________________
I do not require an opinion letter. Either provide the documents responsive to my request,
or state there are no documents responsive to my request.
I understand the penalties provided for requesting or obtaining access to records under false
pretense. I am the ‘natural person’ making this request and my signature appears.
Regards,
_________________________
Signature
_________________________
Name
Inland Revenue Department
____________________
____________________
____________________
Date: ______________________
Name: ________________________
Address: ______________________
______________________
IRD# _________________
SUBJECT: PRIVACY ACT REQUEST
Dear Sir/Madam:
This is a request under the Privacy Act 1993 and regulations thereunder. This is my firm
promise to pay fees and costs for locating and duplicating the documents requested below. If
costs are expected to exceed $ ___________ , please send an estimate of costs.
If portions of this request are exempt from release, please furnish me with those portions
reasonably segregable. Please expedite this request within the time prescribed by statute.
1) Please give me copies of the documents that evidence : _________________________

________________________________________________________________________
I do not require an opinion letter. Either provide the documents responsive to my request,
or state there are no documents responsive to my request.
I understand the penalties provided for requesting or obtaining access to records under false
pretense. I am the ‘natural person’ making this request and my signature appears.
Regards,
_________________________ _________________________
Signature Name
USA
USA Income Tax Information

Congressional Record:
Page 1
Page 2
Page 3
below.
http://www.eddiekahn.com/intl/usa.htm [1/13/2004 8:14:10 PM]

3 Former IRS Agents Expose Newest Government Scheme
3 Former IRS Agents Expose Newest

Gov't Scheme
Dear Friends and Supporters,
I just returned from a trip to Washington, D.C. joining John Turner, Sherry Jackson, Bob Schulz,
Devvy Kidd, Mike Bodine, and some very dedicated We The People Congress supporters,
coordinators, and volunteers in helping to expose a new scheme between the federal government
and state governments to coordinate their efforts to silence and discredit advocates of honesty in
taxation.
There is an excellent article published by WorldNetDaily at:
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=34610
I have attached a statement below that I had prepared and submitted to the media. As is so often the
case, New York Times reporter David Kay Johnston took nothing from the statement but did report false
information about me and attributed a statement to me that I have never uttered in my life - what's new?
Please distribute to everyone you know.

Regards,
Joseph R. (Joe) Banister, C.P.A.

Former IRS Criminal Investigation Division Special Agent
www.freedomabovefortune.com
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Prepared Statement by
Joseph R. Banister, C.P.A.

Former IRS Criminal Investigation Special Agent
Why would a man who was once willing to give his life in defense of the U.S. Treasury become one of its most vocal
detractors? The question is simple enough but the answer is a bit more complex. I sacrificed a great deal to become
a Special Agent (Criminal Investigator) for the U.S. Treasury Department, Internal Revenue Service Criminal
http://www.eddiekahn.com/former_irs_agents_expose.htm (1 of 3) [1/13/2004 8:14:11 PM]

Investigation Division in 1993. I had every intention of making a life-long career out of this position. I sought out
the position because I believed it provided me with the opportunity to use my financial skills and expertise in
service to my country and especially my fellow Americans. My expectations for a life-long career were cut short in
1999 when IRS official encouraged my resignation. Was I encouraged to resign because I had violated the policies
or procedures of the Internal Revenue Service? No. Was I encouraged to resign because I had committed some
illegal act? No. I was encouraged to resign because my IRS superiors refused my request to review evidence
indicating that IRS officials, with the apparent approval of the U.S. Treasury Department, were knowingly
administering the federal income tax system beyond the boundaries of their legal authority and violating the rights
of Americans nationwide in the process. Full details concerning the circumstances surrounding my investigation
into IRS wrongdoing and my resignation from the agency can be viewed at www.freedomabovefortune.com.
During the 4 ½ years since my resignation from the IRS Criminal Investigation Division, I have worked with a
growing number of attorneys, certified public accountants, enrolled agents, paralegals, and tax law researchers,
and concerned citizens who recognize that the federal tax enforcement apparatus has been actively engaged in
preventing the truth about the federal income tax system from reaching the ears of the American people. Over the
last two decades, federal government officials have purposely and deceitfully engaged in orchestrated cover-up
efforts, including:
. manipulation of official computer records and transcripts to create bogus assessments, bogus tax return filing
requirements, inflated and/or bogus interest and penalty assessments;
. attempts to obtain historical documents proving that the 16th Amendment was fraudulently ratified with the
intent to keep such information from ever being made available to the American people;
. ensuring that federal juries do not have access to evidence of a defendant's innocence in federal tax trials.
. seeking massive publicity when the full power of the tax enforcement apparatus achieved victory against the
subject of an IRS investigation but intentionally avoided publicity when the subject of an IRS investigation
achieved victory against the IRS.
. agreeing with a U.S. Congressman in writing to participate in public hearings convened to investigate abusive and
illegal administration and enforcement of the federal income tax system and then breaking that agreement;
. intimidating the USA Today newspaper into refusing to print advertisements exposing the truth about the federal
income tax system.
. Encouraging, if not intimidating, Time Warner AOL officials to block internet transmission of information about
the federal income tax system broadcasted by the We The People Foundation for Constitutional Education
(www.givemeliberty.org )
The fact of the matter is that federal government officials have actively engaged in an ongoing scheme to defraud
the American people, yes defraud them, out of their money, property, and constitutional rights. The IRS trained me
to recognize fraud when I encounter it so I am more than qualified to make such a statement. The reason for our
presence here today is that the federal government is taking yet another step in their ongoing scheme to deceive and
defraud the American people. The federal government is now seeking partnership with state governments to fight
what they call "abusive tax avoidance",
A brief explanation of the term tax avoidance is necessary in order to comprehend the ramifications of this
dangerous new step in the government's deceitful scheme. As an IRS criminal investigator, one of my duties was to
distinguish between tax evasion and tax avoidance. This was a critical task because tax evasion is illegal whereas tax
avoidance is a perfectly legal practice. A quote from the IRS Special Agent's Handbook will help shed light on this
concept:
Avoidance of tax is not a criminal offense. Any attempt to reduce, avoid, minimize, or alleviate taxes by legitimate
means is permissible. The distinction between avoidance and evasion is fine yet definite. One who avoids tax does
not conceal or misrepresent. He shapes events to reduce or eliminate tax liability and, upon the happening of
events, makes a complete disclosure. Evasion on the other hand involves deceit, subterfuge, camouflage,

concealment, some attempt to color or obscure events, or making things seem other than they are.
There has been a long-standing legal principle that tax avoidance by any legal means is not only permissible, but
absolutely lawful and expected. With this new federal-state "partnership", the federal government now plans to
team up with your state to do away with your legal right to legitimately minimize taxes you may owe or eliminate
taxes you do not owe. This partnership, which I view more as collusion, between the federal and state governments
is unprecedented. Federal and state governments now plan to interfere with your legal right to analyze the tax laws
and determine whether you are liable for the tax at all or whether you can even use legal means to minimize a tax
you may owe. This "partnership" will further blur the distinction between the powers reserved to the federal
government versus the powers reserved to the state governments. In other words, the federal and state
governments, acting more as one central government rather than separate governments, are planning to harass
Americans simply for finding and implementing legitimate and legal ways to minimize or eliminate a particular tax.
Only a federal tax apparatus hell-bent on preserving the status quo at any cost could create such a monster. Using
the language from the IRS Special Agent Handbook outlined above, it should be clear to any observer that it is
federal and state tax officials who are engaging in deceit, subterfuge, camouflage, concealment, some attempt to
color or obscure events, and making things seem other than they are, and a growing number of individual
Americans, who are attempting to reduce, avoid, minimize, or alleviate taxes by legitimate means, who do not
conceal or misrepresent, who shape events to reduce or eliminate tax liability and, upon the happening of events,
make a complete disclosure, now have to prepare themselves for battle simply for exercising their right to
legitimately and legally minimize or eliminate a tax liability.
The federal government is obviously encountering a growing number of Americans who are learning about the
deceitful practices of the tax enforcement apparatus and exercising their rights successfully against that apparatus.
Now, with this new federal-state "abusive tax avoidance" partnership, the federal government is again reaching
into its bag of dirty tricks to further erode the unalienable rights of the American people. This abuse of the
American people must come to an end and I will do everything in my power to see to it that it does come to an end.
Joseph R. Banister, C.P.A.
Former IRS Criminal Investigation Division Special agent
www.freedomabovefortune.com

6103 Unlawful Disclosure of Tax Return

Information
After reading KRIS REDDY, M.D AND KRIS M. REDDY, M.D., P.A. v UNITED STATES OF
AMERICA and INTERNAL REVENUE SERVICE (99-8056 CIV-RYSKAMP), in which Dr.
Reddy was awarded $126,000.00 plus court cost and attorney fees for unlawful disclosure of tax
return information we had thought to initiate a court case based on unlawful disclosure of tax
return information when the IRS files a notice of lien in the county recorders office or gives a
notice of levy to your employer, a bank, or other financial institution. However, a gentlemen who
goes by "Ice" brought some court cases to our attention in which the courts consistently ruled that
the filing of a notice of lien or levy was not a violation of 26 USC 6103. Based on the decisions in
the cases below we feel it would be a waste of time to initiate such a lawsuit. We thank Ice and
Harley for bringing these cases to our attention.
United States District Court for the District of Nebraska

RALPH J. MAISANO, III AND AUDREY D. MAISANO,
Plaintiffs,
v.
UNITED STATES,
Defendant.
Docket No. CV-N-88-173-ECR
Date of Decision: September 8, 1989
Judge: Reed, Edward, order
http://www.eddiekahn.com/6103_unlawful_disclosure_of_tax_.htm (1 of 48) [1/13/2004 8:14:13 PM]

Tax Analysts Citation: 1989 TNT 202-11

Principal Code Reference: Section 6103
Summary
Provided by Tax Analysts. Copyright 2002, Tax Analysts. All rights reserved.
SERVICE MAY USE RETURN INFORMATION IN TAX LIEN AND TAX LEVY NOTICES.
ABSTRACT: A U.S. district court has awarded summary judgment to the government, holding
that the disclosure of tax return information in a proper notice of tax lien or tax levy is authorized,
because disclosure is necessary to achieve the purpose of notice.
SUMMARY: The Service determined deficiencies in Ralph and Audrey Maisano's 1982, 1983, and
1984 tax liabilities. When the Maisanos failed to pay the deficiencies, the Service served and filed
Notices of tax liens and notices of levy. In response, the Maisanos filed for damages, alleging that
the government, through the notices, had engaged in unauthorized disclosure of tax returns and/or
return information in violation of section 6103. The government moved for summary judgment.
U.S. District Judge Reed has awarded summary judgment to the government. Citing section
6103(k)(6), Judge Reed held that revenue officers are authorized to disclose return information in
a proper notice of tax lien, because disclosure is necessary to achieve the purpose of notice. The
court, citing William E. Schrambling Accountancy Corp. v United States, 689 F. Supp. 1001, 1005
(N.D. Cal. 1988), held that the same rule applies to notices of tax levy as applies to notices of tax
liens. Full Text Provided by Tax Analysts. Copyright 2002, Tax Analysts. All rights reserved.
ORDER
On April 27, 1988, petitioners filed their amended petition for damages, wherein they allege that
the United States, through its agents, engaged in unauthorized disclosure of tax returns and/or
return information, in violation of 26 U.S.C. section 6103. Plaintiffs seek actual and punitive
damages, pursuant to 26 U.S.C. section 7431. We have subject matter jurisdiction under 28 U.S.C.
section 1331(a). Venue lies in this district pursuant to 28 U.S.C. section 1391(e). Both plaintiffs and
defendant have filed motions for summary judgment under Fed. R. Civ. P. 56 (see documents #34
and #35). Each party has filed an opposition to the opposing summary judgment motion. Summary
judgment is appropriately granted where it is shown that "there is no genuine issue as to any
material fact and that the moving party is entitled to a judgement as a matter of law". Id.
Petitioners contend that section 6103 was violated on four separate occasions: in April, 1984, and
in December, 1987, upon the service and filing of two Notices of Tax Liens; and in November, 1987,
and March, 1988, upon the service and filing of two Notices of Levy. In addition, plaintiffs contend
that two additional Notices of Tax Liens received in April, 1988, for the tax years 1982, 1983, and
1984, were improper because there had been "no assessment" for the years in question. Section
6103(a), 26 U.S.C. section 6103(a) of the Internal Revenue Code, "lays down a general rule that
'returns' and 'return information' . . .shall be confidential." Church of Scientology of California v.
I.R.S., 489 U.S. 9 (1987). The statute is designed to protect taxpayers from indiscriminate
disclosure of tax information by government employees. Lampert v. U.S., 854 F.2d 335, 336 (9th
Cir. 1988). The Code allows a private cause of action by taxpayers against the United States and
provides for damages. 26 U.S.C. section 7431(a), (c). There is no dispute here that the information
contained in the tax lien notices and in the notices of levy was "return information" as defined by

section 6103(b). Section 6103(b) broadly defines that term to include the taxpayer's identity, the
nature, source, or amount of income, and whether there is an investigation. However, section 6103
does authorize disclosure of return information under certain circumstances. For example, section
6103(k)(6) authorizes disclosure "to the extent that such disclosure is necessary in obtaining
correct determination of tax, liability for tax, or the amount to be collected or with respect to the
enforcement of any other provision of this title." Although plaintiffs protest these disclosures, it is
clear that both types of disclosure were authorized by law. There was no violation of section
6103.According to 26 U.S.C. section 6321, upon the refusal of any person to pay a tax that is due, a
lien is created in favor of the United States on all property belonging to that person. Furthermore,
in order for the lien to have priority over the rights of third parties, notice of the lien must be filed
with the appropriate state officials. 26 U.S.C. section 6323(a), (f). Revenue officers are authorized
to disclose return information in a proper notice of tax lien, because disclosure is necessary to
achieve the purpose of notice. See 26 U.S.C. section 6103(k)(6). Therefore, the disclosure in the
notices of tax liens was authorized by law, and did not violate the provisions of section 6013(a). See
Bator v. Department of Treasury, I.R.S., 63 A.F.T.R.2d 89-566 (D. Nev. 1989). Furthermore, we
find no merit in plaintiffs' contention that there was no proper deficiency assessed with respect to
the April, 1988, notices of tax liens. The record reveals that I.R.S. auditor Musseleman investigated
plaintiffs' tax activity for 1982, 1983, and 1984, and thereafter a tax deficiency was assessed by the
Special Procedures Branch of the I.R.S. District Office in Las Vegas. The April, 1988, notices of tax
liens were executed lawfully pursuant thereto. With respect to the notices of levy, plaintiffs' only
argument is that the revenue agents had no authority to make those disclosures. They do not
contend that they were without notice of the tax deficiencies upon which the levies were based. The
same rule applies to notices of tax levy as applies to notices of tax liens: revenue officers are
authorized to disclose return information in a proper notice of levy because disclosure is necessary
to achieve the purpose of the notice. William E. Schrambling Accountancy Corp. v. United States,
689 F. Supp. 1001, 1005 (N.D. Cal. 1988) (disclosure in proper notice of levy authorized under
section 6103(k)(6)). Because plaintiffs have failed to demonstrate the existence of any issue of
material fact, IT IS THEREFORE HEREBY ORDERED that defendant's motion for summary
judgment (document # 35) is GRANTED. IT IS FURTHER ORDERED that plaintiffs' motion for
summary judgement (document # 34) is DENIED.
The Clerk shall enter judgment accordingly. DATED: September 8, 1989. Edward C. Reed United
States District Judge.
United States Court of Appeals for the Ninth Circuit

DAVID L. TOMLINSON,
Plaintiff-Appellant,
v.
UNITED STATES OF AMERICA,
Defendant-Appellee.

Docket No. 91-36156

Date of Decision: September 30, 1992
Judge: per curiam
Summary
DENIAL OF DISCLOSURE DAMAGES IS AFFIRMED.
David Tomlinson failed to file tax returns for 1982 through 1984. The IRS mailed a notice of
deficiency to the address listed on Tomlinson's most recent tax return. The post office returned the
notice to the IRS with Tomlinson's new address stamped on the envelope. The IRS thereafter filed
notices of tax lien and levies against Tomlinson's property. Tomlinson brought suit in district court
seeking damages for unauthorized disclosure and tax collection actions under section 7433, arguing
that the IRS recklessly disregarded the deficiency notice requirement. The district court granted
the government summary judgement. The Ninth Circuit has affirmed the district court, finding
that the IRS had no duty of reasonable diligence to ascertain Tomlinson's correct address beyond
the mailing of the initial deficiency notice. Absent clear and concise notice from Tomlinson of a
change of address, one notice sent to the last known address was sufficient. The court concluded
that any disclosures of Tomlinson's return information were made in connection with valid
collection efforts. Full Text Provided by Tax Analysts. Copyright 2002, Tax Analysts. All rights
reserved. D.C. No. CV-89-1581-D
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WASHINGTON
Carolyn R. Dimmick, District Judge, Presiding
Submitted September 22, 1992 /*/
MEMORANDUM /**/
Before: Goodwin, D.W. Nelson, and Reinhardt, Circuit Judges.
David Tomlinson appeals pro se the district court's summary judgment for the United States in
Tomlinson's action seeking damages under 26 U.S.C. sections 7431 and 7433 for unauthorized
disclosure of his tax information and unauthorized collection actions by the Internal Revenue
Service ("IRS") in its attempt to collect taxes from Tomlinson for the tax years 1982 through 1984.
We have jurisdiction under 28 U.S.C. section 1291, and we affirm. We review the district court's
grant of summary judgment de nova to determine whether, viewing the evidence in the light most
favorable to the nonmoving party, there are any genuine issues of material fact and whether the
district court correctly applied the relevant substantive law. Americana Trading Inc. v. Russ
Berrie & Co., 966 F.2d 1284, 1287 (19th Cir. 1992). Tomlinson contends that the IRS' disclosure of

his return information and its tax collection actions were unauthorized because the IRS failed to
send notices of deficiency to his last known address as required by 26 U.S.C. sections 6212 and
6303(a). Section 6103 of the Internal Revenue Code provides that income tax returns and return
information are confidential. 26 U.S.C. section 6103; Maisano v. United States, 908 F.2d 408, 410
(9th Cir. 1990). Section 7431 provides a civil cause of action for damages for the intentional or
negligent disclosure of confidential return information by officers or employees of the United
States. 26 U.S.C. section 7431; Maisano, 908 F.2d at 410. Section 6103(k)(6), however, authorizes
the IRS to disclose return information if necessary for the collection of tax liability. 26 U.S.C.
section 6103(k)(6). Section 7433 provides a civil cause of action for damages for the reckless or
intentional disregard of any provision of the Internal Revenue Code or any regulation
promulgated there under by officers or employees of the United States. 26 U.S.C. section 7433. The
IRS must send a notice of deficiency to the taxpayer's last known address before it may assess or
collect most income tax liabilities. 26 U.S.C. section 6213(a). "A taxpayer's last known address is
that on his most recent return, unless the taxpayer communicates to the IRS clear and
concisenotice of a change of address." United States v. Zolla, 724 F.2d 808,810(9th Cir.) cert.
denied, 469 U.S. 830 (1984). If the address on the most recent return is to be replaced, the taxpayer
must clearly indicate that the former address must no longer be used. King v. Commissioner, 857
F.2d 676, 681 (9th Cir. 1988). The IRS has no duty of reasonable diligence to ascertain a taxpayer's
correct address beyond the time that the notice of deficiency is mailed. Id. Thus, if the notice of
deficiency is mailed to the taxpayer's last known address and is returned, the IRS is not obligated
to take additional steps to effectuate delivery. Id. Here, the IRS mailed the notices of deficiency to
the address on Tomlinson's most recent tax return filed in 1981. The notices were returned to the
IRS as undeliverable with Tomlinson's new address stamped on the envelope. Tomlinson argues
that the return of the deficiency notices as undeliverable constituted clear and concise notice of a
change of address obligating the IRS to re-send the notices. We disagree. Absent clear and concise
notice from Tomlinson of a change of address, the IRS properly mailed the notices to Tomlinson's
last known address, and had no obligation subsequent to this mailing to effectuate delivery. See id.
Furthermore, regardless of whether Tomlinson received the notices of deficiency, any disclosures
of his return information were made in connection with an attempt to collect his tax liability. Thus,
the disclosures were authorized by section 6103(k)(6). See 26 U.S.C. section 6103(k)(6); Hughes v.
United States, 953 F.2d 531, 542 (9th Cir. 1992); Maisano, 908 F.2d at 410. Accordingly, because
there was no unauthorized disclosure of Tomlinson's return information, nor reckless or
intentional disregard of tax laws, the district court did not err by granting summary judgment for
the United States.
AFFIRMED.
FOOTNOTES
/*/ The panel unanimously finds this case suitable for decision without oral argument. Fed. R. App.
P. 34(a); 9th Cir. R. 34-4. /**/ This disposition is not appropriate for publication and may not be
cited to or by the courts of this circuit except as provided by 9th Cir. R. 36-3.
END OF FOOTNOTES

JACK R. TWEEDY
Plaintiff-Appellant,
v.
UNITED STATES OF AMERICA
Defendant-Appellee.
Docket No. 93-35160

Date of Decision: June 7, 1994
Judge: per curiam
Parallel Citations: 74 AFTR2d Para. 94-5003
Summary
NINTH CIRCUIT UPHOLDS SUMMARY JUDGMENT FOR U.S. IN QUIET TITLE SUIT.
Jack Tweedy, who did not file tax returns for 1983 or 1984, sued the United States asserting two
causes of action. First, he sought to quiet title to personal property on which the government
claimed a tax lien. He alleged that the IRS did not mail notices of deficiency to him. Second,
Tweedy sought damages for unauthorized disclosure of return information. He claimed that the
filing of various liens and levies against him constituted unauthorized disclosures, and alleged that
IRS employees made unauthorized disclosures in their attempts to collect his tax liabilities. A U.S.
district court granted the United States summary judgment after the government offered copies of
the notices of deficiency mailed to Tweedy. (For a summary, see Tax Notes, Nov. 16, 1992, p. 1030;
for the full text, see 92 TNT 227-25.) The Ninth Circuit has affirmed, rejecting Tweedy's contention
that a question of material fact existed with regard to whether or not the government assessed his
tax liability. Citing Huff v. United States, 10 F.3d 1440 (9th Cir. 1993), the court explained that
Form 4340 Certificates of Assessment and Payment, together with Form 23C Summary Records of
Assessment, demonstrate that a valid assessment was made. The appeals court also noted that the
district court lacked jurisdiction to consider Tweedy's contentions regarding the merits of the
assessment in his quiet title action, and that the evidence offered by the government established
that notice and demand were properly made. Citing section 6103(k), the court concluded that any
disclosures of return information were authorized because they were necessary to collect Tweedy's
tax liability. Full Text Provided by Tax Analysts. Copyright 2002, Tax Analysts. All rights
reserved. D.C. No. CV-90-00346-MHW MEMORANDUM /*/
APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF IDAHO

Mikel H. Williams, Magistrate Judge, Presiding /1/

Submitted May 24, 1994 /**/
Before: Hug, D.W. Nelson, and Fernandez, Circuit Judges.
Jack R. Tweedy appeals pro se the district court's summary judgment for the United States in his
action brought under (1) 28 U.S.C. section 2410 seeking to quiet title to certain personal property
on which the United States claims a tax lien, and (2) 26 U.S.C. section 7431 seeking damages for
allegedly unauthorized disclosure of Tweedy's tax return information. We have jurisdiction under
28 U.S.C. section 1291, and we affirm. I Standard of Review We review the district court's grant of
summary judgment de novo. Smith v. Noonan, 992 F.2d 987, 989 (9th Cir. 1993). Viewing the
evidence in the light most favorable to the non-moving party, we must determine whether there are
any genuine issues of material fact and whether the district court correctly applied the relevant
substantive law. Botefur v. City of Eagle Point, 152, 154 (9th Cir. 1993). Under Fed. R. Civ. P.
56(c), the party moving for summary judgment must "demonstrate the absence of a genuine issue
of material fact." Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Once the moving party has
carried its burden, the nonmoving party must show that genuine contested issues of material fact
exist and that the evidence is such that a reasonable jury could return a verdict for the nonmoving
party. Anderson v. Liberty Lobby. Inc., 477 U.S. 242, 248-49 (1986) "Where the record taken as a
whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine
issue for trial." Matsushita Elec. Indus. Co. v. Zenith Radio 475 U.S. 574, 587 (1986) (quotation
omitted). The nonmoving party "must do more than simply show that there is some metaphysical
doubt as to the material facts." Id. at 586. II 28 U.S.C. section 2410 Claims Tweedy did not file
federal income tax returns for 1983 and 1984. As part of its collection proceedings, the Internal
Revenue Service ("IRS") filed notices of federal tax lien and intent to levy against Tweedy. Tweedy
filed the present action pursuant to section 2410 to quiet title to all of his personal property and
wages. Tweedy alleged that the IRS failed to (1) make tax and penalty assessments against him in
accordance with 26 U.S.C. section 6203, (2) mail statutory notices of deficiency to him as required
by 26 U.S.C. section 6212, and (3) mail a notice of assessment and demand for payment as required
by 26 U.S.C. section 6303(a). On appeal, Tweedy challenges the district court's summary judgment
for the United States as to all of these claims. "Under 28 U.S.C. section 2410, the United States may
be joined as a party to a quiet title action affecting property upon which it claims a lien." Elias v.
Connett, 908 F.2d 521, 527 (9th Cir. 1990). We have interpreted section 2410(a) as a limited waiver
of the United States' sovereign immunity in actions challenging only the procedural validity of a
tax lien. Hughes v. United States, 953 F.2d 531, 538 (9th Cir. 1992). A. Tax and Penalty
Assessments Tweedy contends that the district court erred by granting summary judgment for the
United States because there was a genuine issue of fact as to whether the IRS assessed the tax
deficiency and penalty against him pursuant to 26 U.S.C. section 6203. This contention lacks merit.
The IRS submitted Form 4340 Certificates of Assessments and Payments along with Form 23C
Summary Records of Assessment to demonstrate that a valid assessment of both the tax and
penalty had been made. We have held that Form 4340 is presumptive evidence of a valid
assessment if it lists the "23C" date, the date on which the assessment actually was made. See Huff
v. United States, 10 F.3d 1440, 1445-46 cert. filed, 62 U.S.L.W. 3671 (9th Cir. 1993), petition for
(U.S. Apr. 4, 1994) (No. 93-1560). Tweedy presented no evidence that overcomes the presumption
of valid assessments created by the IRS forms. Accordingly, the district court did not err by
granting summary judgment for the United States as to the existence of valid assessments. See id.;

Hughes, 953 F.2d at 535. B. Notices of Deficiency Tweedy contends that summary judgment for the
United States was improper because the IRS failed to issue and send a statutory notice of
deficiency as required by 26 U.S.C. section 6212. This contention lacks merit. "[C]laims that the
IRS failed properly to notice deficiencies address the merits of an assessment and therefore are not
actionable under section 2410." Huff, 10 F.3d at 1445. Accordingly, because the district court
lacked jurisdiction to address Tweedy's allegation, summary judgment on this claim was proper.
See id. C. Notice of Assessment and Demand for Payment Tweedy contends that summary
judgment was improper because the IRS failed to issue and send a notice of assessment and
demand for payment as required by 26 U.S.C. section 6303(a). This contention lacks merit. The
IRS is required to "issue the taxpayer a notice of assessment and demand for payment . . . . The
form on which a notice of assessment and demand for payment is made is irrelevant as long as it
provides the taxpayer with all the information required under . . . [section] 6303(a)." Elias, 908
F.2d at 525 (citation omitted). Form 4340 is sufficient evidence to establish that the IRS complied
with section 6303(a). Huff, 10 F.3d at 1446. Here, the Forms 4340 and 23C submitted by the IRS
show that notice and demand was sent to Tweedy's correct address on April 10, 1989. Tweedy
presented no evidence demonstrating that such notice and demand was not sent to him.
Accordingly, summary judgment on this claim was proper. See id. III 26 U.S.C. section 7431 Claim
Tweedy sought damages for unauthorized disclosure of his tax return information by the IRS. In
granting summary judgment for the United States on this claim, the district court found that any
disclosures of Tweedy's return information were not only authorized by the Internal Revenue
Code, but also required for the government to proceed to collect his tax liabilities. We agree.
Section 6103 of the Internal Revenue Code provides that income tax returns and return
information are confidential. 26 U.S.C. section 6103; Maisano v. United States, 908 F.2d 408, 410
(9th Cir. 1990) (per curiam). Section 7431 provides a civil cause of action for damages for the
intentional or negligent disclosure of confidential return information by officers or employees of
the United States. 26 U.S.C. section 7431; Maisano, 908 F.2d at 410. Section 6103(k), however,
authorizes the IRS to disclose return information if necessary for the collection of a tax liability. 26
U.S.C. section 6103(k)(6). Under section 301.6103(k)(6)-1(b) of the Treasury Regulations, the IRS
may disclose return information "to apply the provisions of the Code relating to the establishment
of liens against [the taxpayer's] assets, or [a] levy on . . the assets to satisfy any [outstanding tax]
liability." Treas. Reg. section 301.6103(k)(6)- 1(b)(6); Maisano, 908 F.2d at 410. Here, it is
undisputed that the disclosures of Tweedy's tax information were made in connection with tax
collection activities. The procedural validity of the underlying assessment has no bearing on the
fact that the disclosures were made for a purpose clearly authorized by section 6103(k)(6). See 26
U.S.C. section 6103(k)(6); Huff, 10 F.3d at 1447; Maisano, 908 F.2d at 410. Accordingly, the district
court properly granted summary judgment for the United States on this claim.
AFFIRMED. /2/
FOOTNOTES
/*/ This disposition is not appropriate for publication and may not be cited to or by the courts of
this circuit except as provided by 9th Cir. R. 36-3.
/**/ The panel unanimously finds this case suitable for decision without oral argument. Fed. R.
App. P. 34(a); 9th Cir. R. 34-4. /1/ Pursuant to 28 U.S.C. section 636(c), the parties consented to
have Magistrate Judge Williams decide the case. /2/ Tweedy also contends that the district court

erred by granting the United States' motion for protective order as to Tweedy's desire to inspect
the IRS's computer programs. Our review of the record supports the district court's conclusion
that Tweedy was on a "fishing expedition" as to such information and we find no error in the
district court's grant of the motion for protective order as to the information. Finally, we reject
Tweedy's claim that the district court erroneously taxed to him the costs of the transcript of his
deposition.
END OF FOOTNOTES
United States Court of Appeals for the Tenth Circuit

SCOTT D. MANN AND CONSTANCE L. MANN,
Plaintiffs-Appellants,
v.
Defendant-Appellee.
Docket No. 98-2201
Date of Decision: February 18, 2000
Judge: Cook, H. Dale
Parallel Citations: 85 AFTR2d Par. 2000-466
Section 7431
Summary
RETURN-INFORMATION DISCLOSURES WERE PROPER DESPITE DEFECTIVE
COLLECTION PROCEDURE.
The Tenth Circuit, affirming a district court decision, has held that the IRS properly disclosed a
couple's return information in lien and levy notices during its collection activity, even though the
IRS had never issued a deficiency notice. Scott and Constance Mann reported zero taxable income
on their 1994 tax return and requested a refund of withheld taxes. The IRS later sent the Manns a
notice of tax due based on changes to their 1994 return, but the couple denied that they owed
further taxes. Without issuing a deficiency notice, the IRS sent the Manns a notice of intent to levy.
The IRS then levied on the couple's bank accounts and wages and filed a notice of tax lien. The
Manns filed suit, seeking injunctive relief from the IRS's collection efforts, plus damages under
section 7431 for the disclosures made in the lien and levy notices. The district court enjoined the

IRS from further collection activities until it complied with proper deficiency procedures.
However, the court concluded that the disclosures were authorized under section 6103 and, thus,
the Manns were not entitled to damages. (For a summary of that opinion, see Tax Notes, Aug. 17,
1998, p. 811; for the full text, see Doc 98- 24020 (12 pages) or 98 TNT 154-16.) The Manns
appealed. Senior U.S. District Judge H. Dale Cook, sitting by designation, stated that section
6103(k)(6) authorizes the disclosure of tax-return information in the issuance of liens and levies to
the extent necessary for collection purposes. The Manns argued that the lien and levy notices were
unauthorized because they were not issued to obtain information. The court disagreed, finding that
the IRS issued the notices in its effort to collect the Manns' unpaid taxes and that the disclosures
were limited to information necessary to effectuate the lien and levy.
The Manns also relied on Chandler v. United States, 687 F. Supp. 1515 (D. Utah 1988) (88 TNT
126-19), aff'd per curiam, 887 F.2d 1397 (10th Cir. 1989) (89 TNT 239-13), to argue that the
disclosures were unauthorized. They reasoned that the IRS failed to issue a deficiency notice and
cease collection activities during the time prescribed; thus, they insisted, section 7431 provides
them with a remedy. The court again disagreed, pointing out that Chandler "focused on whether
the conduct leading up to the disclosure violated [section] 7431(a)(1) and not on the validity of the
vehicle of the disclosure." Here, however, the Manns argued that the disclosure violated section
7431 because the "vehicle of the disclosure was imperfect." Unlike Chandler, in which there was
no tax to be collected, the IRS issued the lien and levy notices to collect a tax liability the Manns
refused to pay. "Simply because the collection procedure was technically defective," Judge Cook
wrote, "it does not follow that the disclosures contained in the notices of levy and lien were
unauthorized." The validity of the means by which the return information was disclosed, Judge
Cook added, is irrelevant for purposes of section 6103, which does not require that the means of
disclosure be valid for section 6103(k)(6) to apply. The Tenth Circuit concluded that the
disclosures fell within the safe harbor exception of section 6103(k)(6); thus, it was irrelevant that a
deficiency notice should have preceded the collection activity and that the IRS should have ceased
its collection efforts. Full Text Provided by Tax Analysts. Copyright 2002, Tax Analysts. All rights
reserved.
PUBLISH
UNITED STATES COURT OF APPEALS TENTH CIRCUIT
APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW
MEXICO
(D.C. No. CIV-97-0882-MV/LCS)
Michael M. Noyes for Plaintiffs-Appellants.
Jonathan S. Cohen (Ann B. Durney and John A. Dudeck, Jr., Attorneys, on the briefs), Tax
Division, Department of Justice, Washington, D.C., for Defendant-Appellee.
Before Murphy and Holloway, Circuit Judges, and Cook, District Judge. /*/
COOK, DISTRICT JUDGE.
[1] Plaintiffs-Appellants Scott Mann and Constance Mann bring this appeal from a final order and

judgment of the United States District Court for the District of New Mexico, granting in part
defendant-appellee's motion for summary judgment. We have jurisdiction by virtue of 28 U.S.C.
section 1291, and we affirm.
BACKGROUND
[2] In December 1995, appellants filed their joint federal tax return for the 1994 tax year. On their
return, appellants stated that they had received $133,381.00 in "non-taxable compensation."
Appellants reported an adjusted gross income and taxable income in the amount of zero dollars.
Appellants further reported federal income tax withheld in the amount of $6,780.00, and they
sought a refund in that amount.
[3] In February 1996, the Internal Revenue Service ("IRS") sent a letter to appellants explaining
that certain changes had been made to their return and that taxes were due. The letter indicated
that appellants' corrected, adjusted gross income totaled $133,381.00, and that their corrected
taxable income totaled $122,131.00. The letter further indicated that appellants' 1994 tax liability
totaled $30,165.10, and that appellants had underpaid their tax liability by $23,385.10. In addition
to the underpayment, the IRS also demanded the payment of a penalty in the amount of $5,846.28
and interest in the amount of $2,386.41. Thus, the IRS initially demanded that appellants pay
$31,617.79.
[4] In March 1996, appellants responded in writing /1/ to the IRS's letter. Appellants set forth
various arguments in support of their opinion that no taxes were due, and they requested a refund
of the taxes withheld. The IRS did not send a notice of deficiency to appellants or otherwise
respond to appellants' letter, but, in late March 1996, the IRS sent appellants a notice of intent to
levy. In that notice, the IRS demanded payment of $32,007.96, which included additional penalties
and interest. [5] The IRS initially assigned the matter to its Automated Collection System Branch
in May 1996 and later to Revenue Officer Joan Adams in November 1996. From May 1996
through April 1997, the IRS issued several notices of levy to various banks and businesses, which,
the IRS believed, had engaged in business with Scott Mann. The IRS also filed a notice of federal
tax lien with the Dona Ana County Recorder, and it sent a final demand notice to Medicine Mound
Enterprises, which was believed to be Mr. Mann's employer at that time. /2/ Each notice contained
one or more of the following items: appellants' names, their address, one or both of appellants'
social security numbers, type of tax, tax period, unpaid balance, statutory additions, and amount
due.
[6] In February 1997, Ms. Adams issued two administrative summonses to Mr. Mann, requesting
his testimony and records for the 1994 and 1995 calender years. Mr. Mann was instructed to
appear at Ms. Adams' office on March 6, 1997. Mr. Mann failed to appear, and he further failed to
contact Ms. Adams prior to the scheduled meeting. Ms. Adams thus referred the matter to IRS
District Counsel on March 6, 1997, to seek judicial enforcement of the summonses.
[7] In April 1997, the IRS District Counsel sent appellants a letter threatening judicial enforcement
of the summonses if Mr. Mann did not comply. In May 1997, Mr. Mann contacted Ms. Adams and
arranged a meeting with her. Mr. Mann appeared at the meeting with two other individuals. When
one of the individuals did not provide his name when initially asked, Ms. Adams terminated the
meeting.

[8] On July 1, 1997, appellants filed this action in the United States District Court for the District
of New Mexico. Appellants sought injunctive relief against the IRS under 26 U.S.C. section 6213(a)
and damages for wrongful disclosure of tax return information under 26 U.S.C. section 7431.
Appellants based their complaint on the undisputed fact that the IRS never sent a deficiency notice
to them, and they alleged that, because of this failure and because the IRS engaged in collection
activity at a time when it was prohibited from doing so, the disclosure of their tax return
information in the lien and levy notices was wrongful. Appellants later filed an amended complaint
seeking witness and mileage fees and costs for attending the May 1997 meeting with Ms. Adams.
[9] On January 5, 1998, the government filed its motion for summary judgment. Appellants filed
their response to the government's motion, and they also moved for summary judgment. On July 1,
1998, the trial court entered its order and judgment granting in part the government's motion and
granting in part appellants' motion. Specifically, the trial court concluded that the disclosure of
appellants' tax information by the IRS did not violate 26 U.S.C. section 6103, and that, therefore,
appellants had no cause of action under 26 U.S.C. section 7431. However, the court enjoined the
IRS from any further collection efforts until the IRS complied with the provisions of 26 U.S.C.
sections 6212 and 6213. /3/ The trial court further held the IRS liable to Mr. Mann for witness and
mileage fees, but it ordered that such fees may be offset against appellants' outstanding tax
liability.
[10] The issues raised by appellants in this appeal are: (1) whether the lower court erred in
concluding that the IRS did not violate 26 U.S.C. section 6103(k)(6) by disclosing tax return
information in the lien and levy notices, at a time when the IRS was statutorily prohibited from
engaging in collection activity, and (2) whether the lower court erred in permitting the IRS to
offset appellants' witness and mileage fee award against their outstanding tax liability. The issues
regarding the propriety of the injunction imposed against the IRS below and the trial court's
determinations regarding the stay of collection activity and requirement for a notice of deficiency
are not before this court. /4/ DISCUSSION
[11] We review de novo the district court's grant of summary judgment, applying the same
standard used by the district court. McKnight v. Kimberly Clark Corp., 149 F.3d 1125, 1128 (10th
Cir. 1998). "Summary judgment is appropriate if 'there is no genuine issue as to any material fact
and . . . the moving party is entitled to a judgment as a matter of law.'" Williams v. Widnall, 79
F.3d 1003, 1005 (10th Cir. 1996) (quoting Fed. R. Civ. P. 56(c)). We examine the record to
determine whether any genuine issue of material fact is in dispute, construing the factual record
and reasonable inferences therefrom in the light most favorable to the non-moving party. Curtis v.
Oklahoma City Public Schools Board of Education, 147 F.3d 1200, 1214 (10th Cir. 1998). If there is
no dispute concerning a genuine issue of material fact, we determine whether the district court
correctly applied the substantive law, Peck v. Horrocks Engineers, Inc., 106 F.3d 949, 951 (10th
Cir. 1997), and we review de novo the district court's conclusions of law. Woodcock v. Chemical
Bank, 45 F.3d 363, 367 (10th Cir. 1995).
[12] Appellants alleged in their complaint that the IRS wrongfully disclosed tax return information
when it issued notices of levy to banks and businesses which had conducted business with
appellants, filed a notice of federal tax lien with the Dona Ana County Recorder, and issued a
notice of final demand to Medicine Mound Enterprises. Appellants argued below that the
disclosure was wrongful because the IRS did not follow the correct assessment and collection

procedures, i.e., that the IRS did not issue the required deficiency notice to appellants and cease
collection activity for the statutorily prescribed period of time prior to issuing the above notices to
third parties. On appeal, appellants argue that this case involves a claim for damages for
disclosures of tax information when the IRS was statutorily barred from engaging in collection
activity. Appellants also argue that since the IRS had already determined the amount of tax that
was due, it was not authorized to disclose return information under the Internal Revenue Code
provision permitting disclosures for the purpose of obtaining information. That is, appellants
argue that the lien and levy notices were not issued for the purpose of obtaining information and
were therefore unauthorized.
[13] The government argued below in its motion for summary judgment that two statutory
provisions are relevant to the wrongful disclosure issue alleged in appellants' complaint. The
government first cited 26 U.S.C. section 7431, which provides for civil damages for the
unauthorized disclosure of returns and return information. The government next cited 26 U.S.C.
section 6103(k)(6), which provides that certain disclosures of returns and return information are
authorized. The government also cited 26 C.F.R. section 301.6103(k)(6)-1(b)(6), which is the
regulation implementing section 6103(k)(6). The government argued that the disclosures in the lien
and levy notices were authorized under section 6103(k)(6) and the regulations, and, therefore,
appellants could not maintain a cause of action under section 7431 for wrongful disclosure.
However, on appeal, the government states at page three of its supplemental brief that, "In briefest
summary, it is our position that Section 7433 of the Internal Revenue Code provides the exclusive
monetary damages remedy where allegedly unauthorized disclosures of federal tax return
information are made in the course of collection activity, which collection activity is itself
authorized by the Code." This is the first instance in which the government expressed such reliance
upon section 7433. /5/
[14] A review of the record reveals that the government did not raise the issue of section 7433's
exclusivity provision below, and it is clear from the record that the lower court did not rely upon
section 7433 in rendering its decision. Indeed, section 7433 is not even mentioned in the lower
court's order and judgment disposing of this case. /6/ Moreover, although the government gave
scant attention to section 7433 in its initial brief on appeal, it is not until the government's
supplemental brief on appeal that it appears to base a firm reliance on the seemingly controlling
exclusivity provision of section 7433, devoting much of its supplemental brief to that section.
[15] Issues and arguments which are not raised below will not ordinarily be considered on appeal.
We have said on numerous occasions that "appellate courts have discretion to hear matters not
raised or argued below. . . . However, this court will do so only in the most unusual circumstances. .
. . Those circumstances may include issues regarding jurisdiction and sovereign immunity, . . . and
instances where public interest is implicated, . . . or where manifest injustice would result."
Rademacher v. Colorado Assoc. of Soil Conservation Districts Medical Benefit Plan, 11 F.3d 1567,
1571- 72 (10th Cir. 1993) (citations and quotations omitted). "The general rule, however, is that the
failure to raise the issue with the trial court precludes review except for the most manifest error."
Id. at 1572.
[16] Because we conclude that the disclosures at issue here were authorized under section
6103(k)(6) and the relevant regulations, we may affirm the judgment of the lower court without
addressing the exclusivity provision of section 7433. While an analysis of the interplay between

sections 7431 and 7433 certainly seems appropriate in the present case, we nevertheless reserve the
question of whether section 7433's exclusivity provision precludes an action under section 7431
where unauthorized disclosures are made in the course of collection activity.
[17] Section 7431(a) provides that, "If any officer or employee of the United States knowingly, or
by reason of negligence, inspects or discloses any return or return information with respect to a
taxpayer in violation of any provision of section 6103, such taxpayer may bring a civil action for
damages against the United States . . . ." Section 6103(a) states the general rule that returns and
return information shall be confidential, and that, except as authorized, no officer or employee of
the United States shall disclose any return or return information obtained by him in the course of
his employment. Section 6103 contains several exceptions to the general rule of non-disclosure, and
one such exception is contained in section 6103(k)(6). That section provides that, An internal
revenue officer or employee may, in connection with his official duties relating to any audit,
collection activity, or civil or criminal tax investigation or any other offense under the internal
revenue laws, disclose return information to the extent that such disclosure is necessary in
obtaining information, which is not otherwise reasonably available, with respect to the correct
determination of tax, liability for tax, or the amount to be collected or with respect to the
enforcement of any other provision of this title. Such disclosures shall be made only in such
situations and under such conditions as the Secretary may prescribe by regulation. The regulation
implementing section 6103(k)(6) provides that, In connection with the performance of official
duties relating to any . . . collection activity, . . . an officer or employee of the [IRS] is authorized to
disclose return information . . . in order to obtain necessary information relating to the following --
. . . (6) To establish or verify the financial status or condition and location of the taxpayer against
whom collection activity is or may be directed, to locate assets in which the taxpayer has an
interest, to ascertain the amount of any liability . . . to be collected, or to otherwise apply the
provisions of the Code relating to establishment of liens against such assets, or levy on, or seizure,
or sale of, the assets to satisfy any such liability. 26 C.F.R. section 301.6103(k)(6)-1(b)(6).
[18] Notwithstanding appellants' emphasis and misplaced reliance on section 6103(k)(6)'s title,
"Disclosure by internal revenue officers and employees for investigative purposes," /7/ we have
said that "section 6103(k)(6) authorizes an IRS employee to disclose tax return information in the
issuance of liens and levies. Thus, the general rule is that liens and levies do not constitute
unauthorized disclosures under section 6103." Long v. United States, 972 F.2d 1174, 1180 (10th
Cir. 1993). We cited in Long not only the language of section 6103(k)(6), but also the Treasury
Regulations, which provide "specific authority to 'apply the provisions of the Code relating to
establishment of liens against . . . assets [in which the taxpayer has an interest], or levy on, or
seizure, or sale of, the assets to satisfy any such [tax] liability.'" Id. (quoting 26 C.F.R. section
301.6103(k)(6)-1(b)(6)). Thus, section 6103(k)(6) and the relevant regulations do permit disclosure
of tax return information when made in notices of lien and levy, to the extent necessary to collect
on taxes assessed. /8/ [19] Appellants also argue that the disclosures contained in the notices of lien
and levy were unauthorized because the IRS failed to issue a notice of deficiency prior to
attempting to collect on appellants' tax liability, and because the IRS engaged in collection activity
at a time when it was statutorily prohibited from doing so. The district court found that appellants'
argument that "the underlying means of disclosure must be valid before the safe harbor of section
6103(k)(6) applies goes against the plain wording of the statute and the case law." Thus, the lower
court held that all disclosures at issue were authorized under section 6103(k)(6) and, therefore,

"even if there were procedural deficiencies rendering the levies defective, no cause of action arises
under . . . section 7431." We agree.
[20] Appellants argue that Chandler v. United States, 687 F.Supp. 1515 (D.Utah 1988), aff'd per
curiam, 887 F.2d 1397 (10th Cir. 1989), compels the conclusion that the disclosures at issue were
unauthorized and that section 7431 provides for a statutory remedy with respect to each such
disclosure. /9/ In Chandler, the taxpayers were assessed a $500 frivolous return penalty by the IRS.
The taxpayers ultimately remitted payment to the IRS by certified mail, but they failed to include
their taxpayer identification number on the payment. When the IRS received the payment, a teller
accessed the taxpayers' account on an IRS computer for the purpose of determining to which
taxpayer identification number to credit the payment. However, instead of recording the first three
digits of their primary taxpayer identification number on the payment, the teller copied the
three-digit street address of the taxpayers' residence. The teller sent the payment to the IRS
Service Center for crediting to the taxpayers' account, but the Service Center could not locate an
account with the indicated taxpayer identification number. The taxpayers' payment was placed in
an unidentified remittance account. As a result of the failure to properly credit the taxpayers'
account, the IRS issued a notice of levy to the employer of one of the taxpayers to collect the
assessment. The IRS subsequently located the taxpayers' payment and credited it to their account.
The taxpayers filed suit alleging that the IRS negligently issued the notice of levy, which contained
an unlawful disclosure of return information.
[21] The district court in Chandler held that the IRS negligently disclosed the taxpayers' return
information when it issued the notice of levy. The court stated that, "The court's review of the facts
persuades it the levy was a result of negligence on the part of IRS personnel. . . . It appears the levy
could have been prevented had the Service Center made any reasonable attempt to locate the
[taxpayers'] account by . . . merely requesting a teller at the Salt Lake IRS Office to run [a]
computer search." Chandler, 687 F.Supp. at 1521. The court held that the IRS's "failure to make a
reasonable effort to locate the [taxpayers'] account is actionable negligence," and the court
awarded the taxpayers $1,000 damages for one act of unauthorized disclosure of return
information, pursuant to section 7431(c)(1). Id. The government appealed, and we affirmed "for
substantially the reasons stated by the district court." Chandler v. United States, 887 F.2d 1397
(10th Cir. 1989) (per curiam).
[22] While Chandler may appear, at first blush, to support appellants' argument here, we agree
with the lower court that Chandler "focused on whether the conduct leading up to the disclosure
violated section 7431(a)(1) and not on the validity of the vehicle of the disclosure." As the lower
court noted, appellants here "contend that because the vehicle of the disclosure was imperfect, the
disclosure itself violates section 7431(a)(1)." The Chandler holding was based on the fact that the
IRS acted unreasonably and negligently in pursuing collection efforts against the taxpayers after
the taxpayers had already remitted the demanded payment. The district court in Chandler found
that the IRS's failure to locate the taxpayers' account constituted actionable negligence, and, if not
for this negligence, the levy containing the disclosures would not have been issued. The decision
was based on the fact that there was never any reason to issue the notice of levy, as the tax liability
had been paid. That is, after the taxpayers remitted payment, there was no tax to be collected and
there was no justification for continuing collection activity, issuing the levy or disclosing of tax
return information. /10/

[23] However, unlike Chandler, the IRS in this case issued the notices of levy and lien in order to
collect on a tax liability that appellants refused to pay. Simply because the collection procedure was
technically defective, for failure to issue a notice of deficiency and for failure to cease collection
activity during the prescribed period of time, it does not follow that the disclosures contained in the
notices of levy and lien were unauthorized.
[24] Sections 6103 and 7431 address improper disclosure of tax return information and not
improper collection activity. /11/ Venen v. United States, 38 F.3d 100, 105 (3rd Cir. 1994). We
therefore agree with the district court that the validity of the means by which the return
information was disclosed is irrelevant to whether the disclosure of the information violated section
6103. We further agree with the district court and the majority of courts which have considered
the issue that there is nothing in section 6103 which requires that the underlying means of
disclosure be valid before the safe harbor of section 6103(k)(6) applies. See Wilkerson v. United
States, 67 F.3d 112, 116 (5th Cir. 1995) (validity of underlying collection activity is irrelevant to
issue of whether disclosure is wrongful); Venen, 38 F.3d at 105-106 (in an action based on
disclosure in an improper levy, the concern is not improper information handling but on improper
collection activity; thus, validity of underlying collection action, e.g., the validity of the levy, is
irrelevant to whether disclosure is authorized under section 6103 and the basis for liability under
section 7431); Huff v. United States, 10 F.3d 1440, 1447 (9th Cir. 1993) (defects in collection
procedure underlying levy notice do not subject IRS to liability for improper disclosure of return
information); but see Rorex v. Traynor, 771 F.2d 383, 386 (8th Cir. 1985) (disclosure in unlawful
levy violates section 6103(a) and is not authorized under section 6103(k)(6)). Indeed, the "plain
language of section 6103 . . . mandates the conclusion that the lawfulness of the levy is irrelevant to
whether disclosure is authorized. . . . Neither the statute nor the regulations on their face authorize
the court to consider whether the collection activity itself is proper." Venen, 38 F.3d at 106.
[25] It is plain from the record that the lien and levy notices were issued by the IRS in its effort to
collect tax from appellants and that the disclosures contained therein were limited to information
necessary to effectuate such lien and levies. As such, the disclosures fall squarely within the safe
harbor exception of section 6103(k)(6). It is irrelevant to the proper determination of this case that
the collection activity should have been preceded by a notice of deficiency and that the IRS should
not have been engaging in collection activity at the time the notices were issued. Since the validity
of the lien and levies is immaterial to the issue of whether the disclosure contained in those notices
is authorized under section 6103, and since the disclosures here were made for the purpose of
establishing a lien against, and levying on, appellants' assets to satisfy their tax liability, the
disclosures were proper, and there is no liability under section 7431. See Venen, 38 F.3d at 107
(because the IRS disclosed taxpayer's return information in pursuit of a levy, the IRS did not
violate section 6103 and is not liable under section 7431).
[26] We lastly find meritless appellants' argument that the district court abused its discretion in
ordering that Mr. Mann's witness and mileage fees may be offset against his outstanding tax
liabilities, if any. The trial court did not permanently enjoin the IRS from seeking to collect on
appellants' tax liability for the 1994 tax year; rather, the court merely enjoined such efforts until
the IRS has complied with the provisions of 26 U.S.C. sections 6212 and 6213. Hence, it is possible,
if not likely, that the IRS will again seek to collect on appellants' tax liability, and it was proper for
the court to order that such witness and mileage fees be offset against appellants' tax liability.

[27] Affirmed.
FOOTNOTES
/*/ The Honorable H. Dale Cook, Senior United States District Judge for the Northern District of
Oklahoma, sitting by designation.
/1/ The district court treated this letter as a request for abatement.
/2/ On May 20, 1996, the IRS issued levies to First Federal Savings Bank and Sun Microsystems.
On May 21, 1996, the IRS issued the notice of federal tax lien. On June 24, 1996, the IRS issued a
levy to Maricopa County Community College. On July 17, 1996, the IRS issued a levy to Sun
Microsystems. On July 24, 1996, the IRS issued a levy to Pointsource Communications. On March
6, 1997, the IRS issued notices of levy to Sun Microsystems, Sun Microsystems Computer
Corporation, First Federal Savings Bank, First Federal Savings Bank NM, Maricopa County
Community College, and Pointsource Communications. On March 17, 1997, the IRS issued a
notice of levy to Medicine Mound Enterprises. On April 16, 1997, a final demand was issued to
Medicine Mound Enterprises.
/3/ In granting the injunction, the court reasoned that the IRS had impermissibly engaged in
collection activity at a time when all collection activities were to be stayed. The court found that
appellants were entitled to a sixty-day stay of collection activity after the IRS sent the notice of
correction to appellants, during which appellants had the right to request an abatement. Further,
since the court found that appellants did request an abatement following their receipt of the IRS's
notice of correction, the court concluded that the IRS was required to send a deficiency notice to
appellants and stay further collection activity for a period of ninety days. Because the IRS failed to
comply with the periods in which collection activity was to be stayed and because the IRS failed to
send the required deficiency notice, the court concluded that appellants were entitled to an
injunction prohibiting further collection activities until the proper procedures are followed. We
assume these conclusions are correct, as the issue regarding the injunction is not before this court.
/4/ As the issues are not before us, we will assume that the district court was correct in holding that
a notice of deficiency was required, that the IRS failed to follow proper collection procedures, and
that the IRS was statutorily prohibited from engaging in collection activity at all times relevant to
this case.
/5/ At the time relevant to this action, section 7433(a) provided, "If, in connection with any
collection of Federal tax with respect to a taxpayer, any officer or employee of the [IRS] recklessly
or intentionally disregards any provision of this title, or any regulation promulgated under this
title, such taxpayer may bring a civil action for damages against the United States . . . . Except as
provided in section 7432, such civil action shall be the exclusive remedy for recovering damages
resulting from such actions."
/6/ The government states at page three of its supplemental brief on appeal that, "Because
taxpayers did not raise any claim under Section 7433, . . . the court had no occasion to consider,
and did not consider, that provision in reaching its decision." It is just as true, however, that
because the government did not raise section 7433 below as a defense to appellants' action under
section 7431, the district court had no occasion to address the application of section 7433.

/7/ Appellants argue that section 6103(k)(6) only permits the IRS to investigate or obtain
information. Because the lien and levy notices were issued for the purpose of collecting tax and not
for investigating or obtaining information, appellants argue that section 6103(k)(6) cannot provide
the authority for the issuance of such notices. For the reasons stated herein, we reject this
argument.
/8/ If there is any question regarding the scope of the authorization granted in section 6103(k)(6) to
disclose tax return information in the context of the issuance of liens and levies for the purpose of
collecting an assessed tax, the ambiguity is eliminated in the regulations which specifically and
unquestionably authorize the disclosure of return information to establish liens against, or levy on,
assets to the extent necessary to collect such tax.
/9/ We note at the outset that Chandler was decided prior to the November 10, 1988, effective date
of section 7433, see Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647, section
6241(a), 102 Stat. 3342, 3747 (1988), which, as noted above, provides for civil damages for certain
unauthorized collection actions. Since Chandler addressed tax return disclosures made by the IRS
in a notice of levy which was issued during collection efforts, Chandler's determination that section
7431 permits recovery in such a case is questionable, in light of section 7433(a)'s provision that it is
the exclusive remedy for recovering damages resulting from collection actions.
/10/ The government argues that the district court in Chandler "apparently assumed that if the
levy itself was negligently made, then the disclosure of return information in that notice of levy
necessarily was unauthorized under Section 6103(k)(6)." It should be noted that, as the
government points out, neither this court nor the lower court in Chandler addressed the argument
that the propriety of the levy was irrelevant to the determination of whether the disclosures were
authorized under section 6103(k)(6). The government represents that although it did not argue in
the district court that the purported invalidity of the levy was irrelevant to the disclosure issue, it
did advance the argument on appeal. Nevertheless, this court affirmed the district court in
Chandler for substantially the reasons stated by the lower court. However, this should not
necessarily be construed as an indication that we believed that the government's argument, raised
for the first time on appeal, lacked merit. Rather, as noted above, arguments which are not
presented below will ordinarily not be considered on appeal, and we therefore had no occasion to
consider this argument on appeal. Unlike Chandler, this issue is now directly and properly before
us. Additionally, as noted above, Chandler was decided prior to the passage of section 7433, at a
time when taxpayers had no specific right to bring an action against the government in damages
for unauthorized collection activity. See H.R. Rep. No. 100-1104, 100th Cong., 2d Sess. 228 (1988)
reprinted in 1988 U.S.C.C.A.N. 5288. By virtue of section 7433, taxpayers now have a right to bring
an action against the government for damages for unauthorized collection activity, under that
section. And, Congress recently broadened this right, after this action was filed, by permitting
lawsuits under section 7433 for the negligent disregard by any officer or employee of the IRS of
any provision of the Code and its regulations. See Internal Revenue Service Restructuring and
Reform Act of 1998, Pub. L. 105-206, section 3102(a)(1)(A), 112 Stat. 685, 730 (1998). It is therefore
clear that had the taxpayers in Chandler brought their action against the government today, their
proper remedy would lie in section 7433 and not in section 7431. Thus, any reliance on Chandler
for permitting a cause of action to be maintained under section 7431 for conduct occurring in
connection with the collection of tax is questionable.

/11/ As the Third Circuit recognized in Venen, "Collection activity is a separate sphere of IRS
activity governed by a separate body of law. . . . The enforcement mechanism for collection
provisions is 26 U.S.C. section 7433." Id. 38 F.3d at 105.
END OF FOOTNOTES
United States District Court for the Eastern District of California

MAURICE R. HUFF AND NANCY R. HUFF,
Plaintiffs,
v.
Defendant.
Docket No. CIV. S-91-859 WBS/PAN

Date of Decision: December 17, 1991
Judge: Shubb, William B.
Summary
IRS LIEN AND DISCLOSURES VALID.
The IRS made assessments against Maurice and Nancy Huff for the 1982 tax year. When the Huffs
failed to pay, the IRS filed a notice of tax lien and levied on the Huffs' wages. The Huffs filed a
complaint against the government to quiet title and for unlawful disclosure. They challenged the
notice of tax lien, arguing that the government had failed to issue notices of deficiency, had failed
to assess the tax, and had failed to issue notices of assessment and demand for payment. The
complaint also challenged the government's authority to take any collection action and claimed
damages for unauthorized disclosure of return information in various notices of levies. The
government moved for summary judgment. U.S. District Judge Shubb has granted the
government's motion for summary judgment. Judge Shubb held that the government had not
waived sovereign immunity with regard to the challenges to the validity of the assessment because
28 U.S.C. section 2410 cannot be used to collaterally attack the merits of an assessment. However,
section 2410 did waive sovereign immunity with regard to the Huffs' procedural challenge of the
liens. Nevertheless, the court held that the government was entitled to summary judgment on that

issue because the government produced certificates of assessment indicating that notices were sent
to the Huffs. Judge Shubb construed the challenge to the government's collection authority as an
action for refund, and granted the government summary judgment because the Huffs had not
established that they had paid the full amount of the assessment and requested a refund from the
IRS. Finally, Judge Shubb held that the disclosures in the notices of levy were proper because they
were necessary to enable the government to to collect the Huffs' tax liabilities. Full Text Provided
by Tax Analysts. Copyright 2002, Tax Analysts. All rights reserved.
MEMORANDUM AND ORDER
The United States of America has moved for summary judgment pursuant to Fed. R. Civ. p. 56.
PROCEDURAL BACKGROUND
On June 28, 1991, plaintiffs filed this complaint to quiet title to personal property and for unlawful
disclosure of information arising out of tax collection activities of the Internal Revenue Service.
The complaint denominates seven "counts." The first three counts challenge the United States'
issuance of a notice of tax lien for the period 1982 without allegedly issuing a notice of deficiency,
failure to assess the tax, and failure to issue a notice of assessment and demand for payment. The
fourth count alleges defendant had no right or authority to take any collection action against
plaintiff for the period 1982. The fifth, sixth, and seventh counts allege the United States disclosed
without authorization return information in various notices of levies. The complaint seeks to
remove a notice of federal tax lien, to recover taxes collected, and to obtain damages for unlawful
disclosure of information. The United States answered the complaint on August 27, 1991. Plaintiffs
moved to strike to answer on September 19, 1991. On November 7, 1991, the court denied the
motion in part and granted it in part. DISCUSSION A. Counts I-III. The United States argues
plaintiffs have failed to state a claim under 28 U.S.C. section 2410 and therefore the United States
has not waived its immunity to suit for Counts I-III. Section 2410 states, in pertinent part, The
United States may be named a party in any civil action or suit . . . to quiet title to . . . real or
personal property on which the United States has or claims a mortgage or other lien. 28 U.S.C.
2410; see also Bank of Hemet v. United States, 643 F.2d 661, 664 (9th Cir. 1981). However, a
taxpayer may not use a section 2410 action to collaterally attack the merits of an assessment.
United States v. Polk, 822 F.2d 871, 872 n.1 (9th Cir. 1987). Rather, to state a claim under section
2410, a taxpayer's allegations must contest the procedural validity of the IRS lien. See Elias v.
Connett, 908 F.2d 521, 527 (9th Cir. 1990). In Elias, appellant contended that: "(1) his tax
deficiency is null and void; (2) a lawful assessment against him does not exist; (3) he is not liable for
any 26 U.S.C. section 6672 penalties; and (4) his assessment is invalid because he was not issued a
notice of deficiency for 1981 and 1982." Id. The court found that "[t]hese allegations address the
merits of Elias's assessment rather than the procedural validity of the IRS's lien. Therefore, they
do not support Elias's claim that he has stated a quiet title cause of action under section 2410(a)
(citations omitted)." Id. The court nevertheless went on to state that Elias' separate allegation that
the IRS's lien is invalid because the IRS did not send him a valid notice of assessment and demand
for payment under 26 U.S.C. section 6303(a) did attack the procedural validity of the lien.
However, the court concluded that Elias did not state a claim because the United States had
provided the appropriate notices. Id. at 528. /1/ Here, the United States has not waived its
immunity to suit with respect to plaintiffs' first two claims because under Elias they challenge the
merits of the assessment. While plaintiffs' third claim attacks the procedural validity of the lien, it

too fails. The Certificates of Assessment attached to the Government's motion for summary
judgment indicate that notice was provided to Nancy Huff on October 6, 1986 (date of assessment)
and January 12, 1987. They also indicate that a fourth delinquency notice was sent on December 1,
1986. The Certificate of Assessment for Maurice Huff's 1982 tax year indicates that a notice of
balance due was sent December 15, 1986 (date of assessment). It also indicates that fourth
delinquency notices were sent January 5, 1987 and July, 1987. The certificates of assessment are
presumptive evidence that notice was entered in accordance with section 6303(a). See United States
v. Miller, 318 F.2d 637, 639 (7th Cir. 1963); United States v. Dixon, 672 F. Supp. 503 (M.D. 1987);
United States v. Posner, 405 F. Supp. 934, 937 (D. Md. 1975). The Huffs fail to present any evidence
that would refute the United States' evidence that notice was provided. In a motion for summary
judgment, the nonmoving party may not rest on his pleadings, but must provide the district court
with evidence of the existence of a disputed material issue of fact.
Celotex Corp. v. Catrett, 477 U.S. 317, 324 (1986). /3/ The Huffs' declaration that they did not
receive the notices does not interject a question of material fact because the defendant is not
required to prove that plaintiffs received the notice, only that it was properly sent. McCarthy, 929
F.2d at 1089. The Certificates of Assessment constitute presumptive evidence that such notice was
sent to the taxpayer. See United States v. Chila, 871 F.2d 1015, 1019 (11th Cir. 1989), cert. denied,
493 U.S. 975 (1989). /4/ B. Count IV
In count four plaintiffs allege:
The United States had no right or authority to take any "collection" against plaintiffs for the
period 1982, nor does it have any right to keep the property (monies) which it has already
obtained, directly or indirectly, from the plaintiffs. It appears to the court that in count IV
plaintiffs have attempted to state a claim for tax refund. Pursuant to 28 U.S.C. section 1346(a) the
district courts have original jurisdiction of "[a]ny civil action against the United States for the
recovery of any internal-revenue tax alleged to have been erroneously or illegally assessed or
collected, or any penalty claimed to have been collected without authority or any sum alleged to
have been excessive or in any manner wrongfully collected under the internal-revenue laws." 28
U.S.C. section 1346(a). The Supreme Court has held that section 1346(a) requires a taxpayer to
make full payment of an assessment before an income tax refund suit can be maintained in a
federal district court. See Flora v. United States, 362 U.S. 145 (1960); 26 U.S.C. section 7422(a).
Further, a tax refund suit will fail as a refund action if it does not allege that the full amount of the
assessed tax liabilities for the years in question have been paid. See Gattuso v. Pecorella, 733 F.2d
709, 710 (9th Cir. 1984). Plaintiffs do not allege or offer evidence that they paid the full amount of
the assessed tax liabilities for the years in question, and therefore the United States is entitled to
summary judgment on that issue. /5/ C. Counts V-VII Counts V-VII allege that the United States
violated the disclosure provisions of 26 U.S.C. section 6103 by disclosing return information in four
notices of levy served upon the plaintiffs' employers. The information was properly disclosed in
connection with the I.R.S.'s collection activities. See Maisano v. United States, 908 F.2d 408, 410
(9th Cir. 1990); Treas. Reg. section 301.6103(k)(6)- 1(b)(6) (authorizing disclosure of tax return
information "to apply the provisions of the Code relating to the establishment of liens against [the
taxpayer's] assets, or [a] levy on . . . the assets to satisfy any [outstanding] liability."). The United
States is therefore entitled to summary adjudication on counts V-VIII. IT IS THEREFORE
ORDERED that defendant's motion for summary judgment be, and the same is, hereby granted in
favor of defendant and against plaintiffs. IT IS FURTHER ORDERED that plaintiff's motion to

strike the declaration of John Pirkle and the Certificates of Assessment be, and the same is, hereby
denied. William B. Shubb United States District Judge DATED: December 17, 1991
FOOTNOTES
/1/ Plaintiffs are incorrect in asserting that the "Ninth Circuit has practically abandoned some of
the conclusions" in Elias. Arford v. United States, 934 F.2d 229 (9th Cir. 1991), is not to the
contrary and the Third Circuit's decision in Robinson v. United States, 920 F.2d 1157 (3rd Cir.
1990), is of no import in light of the fact there is Ninth Circuit precedent precisely on point.
/2/ Although plaintiffs also allege the United States has waived immunity to suit under the
Administrative Procedure Act, 5 U.S.C. section 701 et. seq., this contention is without merit. While
the APA provides a general waiver of sovereign immunity, it does not confer jurisdiction on these
facts. United States v. McCarthy, 929 F.2d 1085, 1088 (5th Cir. 1991); see also State of Washington
v. Udall, 417 F.2d 1310 (9th Cir. 1969) (the APA does not constitute a consent of the United States
to all suits of whatever nature and a blanket waiver of sovereign immunity).
/3/ Plaintiffs' moves to strike the Certificates of Assessment as admissible because they are
improperly authenticated and that evidence is insufficient for failure to comply with the best
evidence rule. The exhibits bear the signature of an officer of the Department of Treasury. An
unsealed document purporting to bear the signature in the official capacity of an officer or
employee of a United States agency is admissible without extrinsic evidence of authenticity if a
public officer certifies under seal that the signature on the document is authentic and was made in
the officer's official capacity. See Fed. R. Evid. 902(2); see McCarthy v. United States, 929 F.2d
1085 (5th Cir. 1991). Moreover the United States need not produce the actual document under
these circumstances. See United States v. Zolla, 724 F.2d 808, 810 (9th Cir.), cert. denied, 469 U.S.
1067 (1984) (where IRS routinely destroyed copies of notices of deficiency and demands for
payment, postal form certifying that notices of deficiency had been mailed and IRS form certifying
that taxes and penalties had been assessed were sufficient in absence of contrary evidence to
establish that notices and assessments were properly made); see also Lovelace v. United States,
91-1 U.S.T.C. P. 50,144 (W.D. Wash. 1990) (rejecting argument that government agent lacked
authority to authenticate 4340 forms and that the government needed to produce actual
documents). For these reasons, plaintiffs' motion to strike is denied.
/4/ The decision in United States v. Wright, 658 F. Supp. 1 (D. Alaska 1986) is not on point. In that
case the Internal Revenue Service brought an action to reduce to judgment an assessment of
federal income taxes. The issue arose in that case whether the United States mailed the notice of
deficiency in full compliance with 26 U.S.C. section 6212(a) ("Secretary . . . authorized to send
notice of such deficiency to the taxpayer by certified mail or registered mail."). The court, after
weighing the evidence concluded it had not been so mailed. Id. at 2. The court in Wright did not
decide the issue of whether a presumption arises from a Certificate of Assessment that a notice of
assessment and demand for payment had been sent pursuant to 26 U.S.C. section 6303(a)
(Secretary shall, . . . give notice to each person liable for the unpaid tax.").
/5/ Plaintiffs effort to convert the fourth claim for relief into either a claim of conversion or
violation of due process is unavailing. The federal district courts lack jurisdiction over tort claims
"arising in respect of the assessment or collection of any tax." 28 U.S.C. section 2680(c); see also
Morris v. United States, 521 F.2d 872, 874 (9th Cir. 1975). Moreover, so long as there is adequate

opportunity for post-seizure determination of rights tax collection procedures of the Internal
Revenue Code meet due process requirements. Myers v. United States, 647 F.2d 591, 602 (5th Cir.
1981).
United States District Court for the Eastern District of Michigan

WILLIAM E. ROWLEY AND ELLEN L. ROWLEY,
Plaintiff
v.
Defendant
Docket No. 93-CV-74284 DT
Date of Decision: August 11, 1994
Judge: Cohn, Avern
Parallel Citations: 74 AFTR2d Par. 94-5322;
94-2 USTC Para. 50,464;
866 FSupp 1024
Summary
RETURN INFORMATION RELEASED IN NOTICE OF TAX LIEN IS NO LONGER
'CONFIDENTIAL.'
William and Ellen Rowley claimed deductions on their 1982 return relating to a tax shelter. The
IRS disallowed the deductions and the Rowleys petitioned the Tax Court, but the parties settled the
dispute and the court entered a consent decision in December 1990, settling the amount of tax due.
The IRS sent the Rowleys notice and demand for payment and notice of intent to levy in January
1991, although there is no evidence the Rowleys received the notice of intent to levy. In October
1991, an IRS revenue officer was assigned to collect the Rowleys' tax debt. The officer met with the
Rowleys and informed them the IRS was considering seizing and selling their interest in a piece of
real estate. In January 1992, a notice of tax lien was filed, listing the Rowleys' names and address,
the kind of tax they owed, and the amount of the obligation. The IRS then seized the property.
Three weeks later, William Rowley filed an administrative appeal of the seizure, asserting that they
had never received notice of intent to levy. The IRS released the property two weeks later. Just
prior to the release, however, an IRS revenue officer placed advertisements in local papers in an

effort to sell the property. One of the ads contained the Rowleys' names and a description of the
property and stated that the property was seized for nonpayment of taxes. The Rowleys filed suit
for damages, arguing that the IRS made an unauthorized disclosure of their return information.
U.S. District Judge Avern Cohn has granted the United States' motion for summary judgment,
ruling that the IRS did not violate section 6103. First, Judge Cohn found a question of material fact
as to whether the Rowleys received notice of intent to levy, because the government could not
prove that the notice was sent by registered or certified mail. Thus, the Service's collection activity
might not have been authorized. Nevertheless, the court held that the publication of the return
information was not unauthorized, because the information was not confidential at that time since
the information was already disclosed in the notice of tax lien that was filed in January 1992. Judge
Cohn based this ruling on the Ninth Circuit's decision in William E. Schrambling Accountancy
Corp. v. United States, 937 F.2d 1485 (9th Cir. 1991), although the Sixth Circuit (to which an
appeal in this case would lie) has not ruled on this issue. Full Text Provided by Tax Analysts.
Copyright 2002, Tax Analysts. All rights reserved.
HONORABLE AVERN COHN
MEMORANDUM AND ORDER I.
This is a tax case. Plaintiffs, William and Ellen Rowley (the Rowleys), allege that the Internal
Revenue Service (IRS) wrongfully disclosed their tax return information during the course of
advertising a public auction of property seized from them to pay a tax obligation. The property
was later returned, and the auction not held. The Rowleys seek damages under 26 U.S.C. section
7431(a), which makes the government liable for civil damages for the unauthorized disclosure of a
taxpayer's return information.
/1/ Now before the Court is the government's motion for summary judgment. For the reasons
which follow, the motion is GRANTED. II. In 1982, the Rowleys filed a tax return claiming
deductions from the Booker Album Partnership. The IRS subsequently disallowed the deductions.
A dispute arose as to how much tax was owed, and the Rowleys petitioned the Tax Court for a
determination of how much tax they owed. The Tax Court entered a consent decision on December
14, 1990, settling the amount of tax due for 1982. The IRS sent Notices and Demands for Payment
to the Rowleys on January 1, 1990, February 19, 1990, July 30, 1990, and December 3, 1990. A
final Notice and Demand for payment and a Notice of Intent to Levy were sent to the Rowleys on
January 7, 1991. There is no proof that the Rowleys ever received the Notice of Intent to Levy. On
October 9, 1991, Revenue Officer Emily Ebaugh (Ebaugh) of the IRS post of duty at Defiance,
Ohio, was assigned to collect the unpaid tax liability. At a meeting with the Rowleys on December
23, 1991, Ebaugh told the Rowleys that the IRS was considering seizing and selling their one-half
interest in an unfinished cabin in Oscoda County, Michigan (the Oscoda property). Because the
Oscoda property was located within the Detroit District of the IRS, Ebaugh requested assistance
from the Detroit District. In January, 1992, Revenue Officer Ernie Kozlowski (Kozlowski) of the
Alpena post of duty was assigned to assist Ebaugh. Kozlowski filed a Notice of Federal Tax Lien
with the Oscoda County Register of Deeds on February 7, 1992. The Notice disclosed, among other
things, the names and address of the Rowleys, the kind of tax owed, the period for which the tax
was owed, and the unpaid balance of the assessment. On March 6, 1992, Kozlowski seized the
Rowleys' interest in the Oscoda property. On the same date, Kozlowski sent a Notice of Seizure,
Levy Notice, and Notice of Administrative Appeal Rights to an IRS Seizure Action to Ebaugh for

service on the Rowleys. Ebaugh personally served the Rowleys at their home on March 17, 1992. In
a letter dated March 27, 1992, William Rowley instituted an administrative appeal of the seizure
under a pilot program then in place in the Detroit District of the IRS. The basis for the appeal was
that the Rowleys did not receive a Notice of Intent to Levy. In response to the Rowleys' appeal, the
IRS released its seizure of the Oscoda property. In its letter to the Rowleys responding to their
appeal, the IRS wrote: "After a careful review of the facts you presented us, we found that you did
not receive proper notice on your liability with us." The Oscoda property was released on April 9,
l992. The letter notifying the Rowleys that the property was released was dated April 27, 1992.
Prior to the IRS' decision to release the Oscoda Property, Kozlowski placed an advertisement in
the April 5, 1992, edition of the Sunday Detroit Free Press and Detroit News in an effort to sell the
property. This advertisement did not contain the name, address, legal description of the property
or any other taxpayer information. A second advertisement ran in the April 7, 1992, edition of the
Oscoda County Herald. This advertisement contained the Rowleys' names, the legal description of
the property, and stated that the property had been seized for non-payment of federal taxes.
/2/ The IRS office in Alpena received inquiries from interested purchasers, and sent an information
package that contained the details of the property to be sold, the property's legal description, the
names of the taxpayers from whom the property was seized, and indicated that the property had
been seized for nonpayment of federal taxes. III. The Rowleys assert that the IRS wrongfully
disclosed their tax return information in violation of 26 U.S.C. section 6103. Twenty-six U.S.C.
section 6103 titled "Confidentiality and disclosure of returns and return information "provides
that as a general rule" returns and return information shall be confidential, and except as
authorized by this title," no officer or employee of the United States "shall disclose any return or
return information obtained by him in any manner in connection with his service as such as an
officer or an employee or otherwise." An exception to the general rule of confidentiality is that IRS
officers or employees may disclose return information as necessary in connection with collection
activity. 26 U.S.C. section 6103(k)(6).
/3/ Another exception to the rule of confidentiality in place in some circuits is that tax information
that has been lawfully disclosed may subsequently be disclosed without violating the Internal
Revenue Code (IRC). See discussion below. The Rowleys argue that because the collection activity
of the IRS here was improper, the disclosure of their return information in the course of that
activity was also improper. The Rowleys say their return information was disclosed in both the
newspaper advertisement placed by Kozlowski in the Oscoda County Herald, in conversations with
and information packages mailed to prospective buyers, and in notices of sale posted at the
property. The government moves for summary judgment on four grounds: (1) that the IRS'
collection activity was proper and complied with all relevant statutory notice provisions; (2) that
the disclosures that were made were authorized by the IRC in the course of legitimate collection
activity; (3) that the information that was disclosed was already a matter of public record, so the
IRS cannot be liable for wrongfully disclosing the information; and (4) even if the disclosures were
not authorized, they were made in good faith. IV. A. The government argues that even though the
Oscoda property wad ultimately released to the Rowleys, the collection activity was proper. The
government says that the ultimate release of the property was based on a failure to comply with
internal guidelines, not statutory requirements. The government argues that this does not make the
seizure improper. The IRC requires that notice be given before property is seized. The relevant
statutory section requires that notice be given no less than thirty days before the day of the levy. 26

U.S.C. section 6331(d).

/4/ Notice may be given in person, left at the dwelling or place of business of the taxpayer, or sent
by registered or certified mail to the taxpayers's last known address, no less than thirty days before
the day of the levy. Id. Under Section 56(12)1.1 of the Internal Revenue Manual,
/5/ notice must also be received within 180 days prior to a seizure. Because the Rowleys were not
given notice within 180 days of the seizure,
/6/ the IRS says, it decided to release the Oscoda property. The Internal Revenue Manual's
provision that a taxpayer must be given a Notice of Intent to Levy within 180 days prior to a
seizure is an internal guideline for IRS agents; it does not create or confer any rights upon a
taxpayer. United States v. Will, 671 F.2d 963, 967 (6th Cir. 1987). If an action of the IRS meets the
requirements of the IRC, failure to observe an internal IRS guideline does not give rise to a cause
of action by a taxpayer. Here, the government says the IRS mailed a Notice of Intent to Levy on
January 7, 1991. If properly sent, this notice would comply with the statutory thirty day
requirement. The affidavit of William Rowley asserts the Rowleys never received the Notice of
Intent to Levy. The government has submitted the Declaration of Louise J. Dorothy, a Revenue
Officer Advisor in the Special Procedures Branch, Collection Division, in the Detroit Division of
the IRS. Her declaration states that the IRS's computer records show that "On January 7, 1991, a
Final Notice and Demand for Payment and Notice of Intent to Levy was generated by the
Cincinnati Service Center and sent to [the Rowleys]." Declaration of Louise J. Dorothy (Dorothy).
Although the IRC requires that a notice sent by mail be registered or certified, 26 U.S.C. section
6331(d), the IRS has not provided any registered or certified mail receipt. And although Dorothy's
declaration is undisputed, it only indicates that notice was "sent" by some means on January 7,
1991; it does not establish that it was sent via registered or certified mail. It is also undisputed on
the current state of the record that the Rowleys did not receive the January 7, 1991, notice. As a
result, whether or not the Rowleys were given proper notice under 26 U.S.C. section 6331(d)
implicates a question of material fact. B. The government argues that because the IRS collection
activity met all the statutory requirements, the collection action was proper. See discussion above.
Therefore, the government argues, any taxpayer information disclosed during the collection action
was authorized under 26 U.S.C section 6335(b),
/7/ because the IRS may disclose return information as necessary in connection with collection
activity. 26 U.S.C. section 6103(k)(6). Whether or not the IRS provided the Rowleys with proper
notice before seizing the Oscoda property is an issue of material fact. See discussion above.
Accordingly, the government's argument that the disclosure of the Rowleys tax informatIon was
authorized at the time it was made, as a disclosure made in connection with authorized collection
activity, may also involves issues of material fact. The government also argues that even if its
collection activity was not authorized, procedural errors in the collection process, such as a failure
to give proper notice, do not subject the IRS to liability for the disclosure of return information. In
support of its contention, the IRS cites four cases it says stand for the proposition that "defects in
the collection procedures do not subject the IRS to liability for disclosures of return information
made in lien notices and levies." Huff v. United States, 10 F.3d 1440, 1447 (9th Cir. 1993); Farr v.
United States, 990 F.2d 451, 455 (9th Cir. 1993); Messinger v. United States, 769 F. Supp. 935, 939
(D. Md. 1991); Flippo v. United States, 670 F. Supp. 638, 642-43 (W.D.N.C. 1987). Even if the cases
stand for the broad proposition for which the IRS cites them, they do no resolve the issue here. The

complained of disclosures here were not made in lien notices or levies, but in a published
newspaper advertisement, in conversations with and information packages sent to prospective
buyers, and in notices of sale posted at the Oscoda property. The Court need not decide that the
public disclosures involved here are analogous to disclosures made in lien notices or levies, and will
not grant summary judgment on this ground. See, e.g., Huff, 10 F.3d at 1447 (involving disclosure
of return information in three notices 6f tax levy sent to the plaintiffs' employers); Flippo, 670 F.
Supp. at 642-43 (involving disclosures made in telephone calls to plaintiff's mother and former
counsel made by a Revenue Officer). C. The government also argues that after the filing of the
Notice of Federal Tax Lien with the Oscoda County Register of Deeds on February 7, 1992, the
Rowleys' tax information was a matter of public record. As a result, the government argues, the
material wad no longer confidential, and its disclosure did not violate the IRC. There is a split in
the circuits regarding whether a prior protected disclosure of tax return information eliminates the
confidentiality protection for subsequent disclosures of the same information. The Sixth Circuit
has not yet addressed this question. Both parties cite cases supporting their respective positions.
The Rowleys point to Rodgers v. Hyatt, 697 F.2d 899, 906 (10th Cir. 1983) (holding that disclosure
of taxpayer information by an IRS official was not justified by the fact that the information had
been disclosed by the taxpayer's attorney in a previous judicial proceeding), and to Chandler v.
United States 687 F.Supp. 1515, 1518- 1520 (D.Utah 1988), affirmed her curiam 887 F.2d 1397
(10th Cir. 1989) (holding that the key issue is whether or not the disclosure is authorized, not
whether or not it was previously disclosed; the fact that the tax information was disclosed in a
prior proceeding is irrelevant). The government points to several cases in support of its position
that prior disclosure of the tax information eliminates the confidentiality protection of section
6103. William E. Schrambling Accountancy Corp. v. United States, 937 F.2d 1485, 1489 (9th Cir.
1991) (holding that information placed on file at the County Recorder's office is no longer
confidential and may be disclosed by the IRS without violation section 6103); Lambert v. United
States, 854 F.2d 335, 337-338 (9th Cir. 1988) (holding that tax information disclosed in a prior
proceeding is not confidential and may be disclosed without violating section 6103); and Thomas v.
United States, 890 F.2d 18, 21 (7th Cir. 1989) (holding that it is not a violation of section 6103 if the
information that is made public is from a public document). The Ninth Circuit's argument in
Schrambling is the most persuasive in these circumstances. Here, as in Schrambling, the
information that was disclosed by the IRS was previously disclosed in a tax lien filed with the
County Register of Deeds. The Schrambling Court stated: " . . . the purpose of recording the lien,
unlike including the information in court documents is to place the public on notice of the lien."
937 F.2d at 1489. The information that is placed on file at the Register of Deeds' Office is therefore
not confidential and may be disclosed again by the IRS without violating section 6103. Id. In the
cases cited by the Rowleys, tax information was disclosed in a judicial proceeding, not in a filing at
the County Register of Deeds. As Schrambling noted, the sort of previous disclosure involved here
-- recording a tax lien at the County Register of Deeds -- is designed to provide public notice and is
thus qualitatively different from disclosures made in judicial proceedings, which are only
incidentally made public. The material disclosed by the IRS here in the newspaper advertisement,
sales notices, and in the information provided to prospective buyers is the same information that
was recorded at the Register of Deeds' Office. Schrambling is persuasive in its conclusion that
"information placed on file at the [Register of Deeds'] Office is 'no longer confidential and may be
disclosed again without regard to section 6103.'" Schrambling, 937 F.2d at 1489 (quoting Lampert
v. United States, 854 F.2d 335, 338 (9th Cir. 1988)). The government is therefore entitled to
summary judgment because the information involved in the complained of disclosures was no

longer confidential after being placed on file at the Register of Deeds' Office. D. The government
argues that the disclosure of the Rowleys' tax information was made with a good faith
interpretation of section 6103, and thus is protected under 26 U.S.C. section 7431(b). As the Court
finds that summary judgment is proper because the information that was disclosed here was
already a matter of public record, it need not address this issue. V. For the reasons stated above,
the government's Motion for Summary Judgment is GRANTED, and the case is DISMISSED. SO
ORDERED. Avern Cohn United States District Judge DATED: AUGUST 11, 1994. Detroit,
Michigan
FOOTNOTES
/1/ 26 U.S.C. section 7431(c) states: Damages. -- In any action brought under subsection (a), upon a
finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an
amount equal to the sum of --
(1) the greater of --
(A) $1,000 for each act of unauthorized disclosure of a return or return information with respect to
which such defendant is found liable, or
(B) the sum of --
(i) the actual damages sustained by the plaintiff as a result of such unauthorized disclosure, plus
(ii) in the case of a willful disclosure or a disclosure which is the result of gross negligence, punitive
damages, plus
(2) the costs of the action.
/2/ Because the advertisement in the Detroit Free Press and Detroit News did not contain any
return information, only the advertisement in the Oscoda County Herald will be considered here.
/3/ Twenty-six C.F.R. section 301.6103(k)(6)-1(b)(6), which implements 26 U.S.C. section
6103(k)(6), states that disclosures of return information may be made in order to obtain necessary
information relating to the application of "the provisions of the [Internal Revenue] Code relating
to the establishment of liens against [a delinquent taxpayer's] assets, or levy on, or seizure, or sale
of, the assets to satisfy any such liability [under the internal revenue laws)."
/4/ The IRS also must give notice to a taxpayer of liability for an unpaid tax within sixty days of its
making an assessment of the tax under 26 U.S.C. section 6303(a). The Rowleys do not dispute that
this notice requirement was fulfilled.
/5/ The Internal Revenue Manual contains internal guidelines for revenue officers. The relevant
section states: "Except in unusual circumstances, such as jeopardy conditions, the revenue officer
will ensure that the taxpayer has received a notice of intent to levy within the last 180 days prior to
the seizure action. If not, a new notice will be issued." Internal Revenue Manual section
56(12)1.1(2). This guideline is an internal regulation, not a statute.
/6/ The IRS says that the Notice of Intent to Levy was sent on January 7, 1991. Even if it was
received by the Rowleys, it was received more than 180 days prior to the seizure of the Oscoda

property.
/7/ Twenty-six U.S.C. section 6335(b) provides in part: The Secretary shall as soon as practicable
after the seizure of the property give notice to the owner, in the manner prescribed in
subsection(a), and shall cause a notification to be published in some newspaper published or
generally circulated within the county wherein such seizure is made . . . Such notice shall specify
the property to be sold, and the time, place, manner, and conditions of the sale thereof.
END OF FOOTNOTES
United States District Court for the District of Nebraska

ROBERT L. METTENBRINK
Plaintiff,
v.
Defendant
Docket No. CV89-L-378

Date of Decision: April 8, 1991
Judge: Urbom, Warren K.
Parallel Citations: 91-1 USTC Para. 50,212
Summary
U.S. WINS SUMMARY JUDGMENT IN SUIT TO QUIET TITLE AND FOR WRONGFUL
LEVY AND
UNLAWFUL DISCLOSURE.
In May 1987, the IRS assessed deficiencies against Robert Mettenbrink for the years 1981 through
1984 and sent him a notice and demand for payment. In October 1987, the IRS filed a notice of
federal tax lien. The IRS subsequently learned that Mettenbrink was the beneficiary of his
deceased father's estate. The IRS issued jeopardy assessments for Mettenbrink's tax years 1985
through 1989 and perfected service by certified mail. Notices of levy were served on the bank that
was the personal representative of the estate and on the clerks of the local courts. The IRS also
filed additional notices of tax lien. Mettenbrink filed suit in district court to quiet title and for
wrongful levy, unauthorized disclosure, and mandamus. The government moved for summary

judgment, arguing that the claims over which the court had jurisdiction could be decided as a
matter of law. Senior U.S. District Judge Urbom has entered summary judgment in favor of the
government. First, the court held that 5 U.S.C. section 702; 26 U.S.C. section 7426; and 28 U.S.C.
sections 1340, 1346(a) and (e), 1361, 2410, and 2463 did not confer jurisdiction on the court to hear
Mettenbrink's claims. The court then held that the government had sufficient basis for making a
jeopardy assessment under section 6861(a) and that all requirements of section 6861 were met.
With regard to Mettenbrink's claim of unauthorized disclosure of return information, the court
found that the alleged disclosures occurred when levies were served on the bank and held that the
levies, while premature, did not result in improper disclosure of return information. Finally, the
court rejected Mettenbrink's claim that the revenue agent was not properly delegated the
authority to make levies. Full Text Provided by Tax Analysts. Copyright 2002, Tax Analysts. All
rights reserved.
MEMORANDUM AND ORDER ON DEFENDANT'S MOTION FOR SUMMARY JUDGMENT
The plaintiff, Robert Mettenbrink, has brought this action against the defendant, United States of
America to quiet title, and for wrongful levy, unauthorized disclosure, and mandamus. He has also
requested a jury trial. The dispute centers around a lien, placed by the government, on the
distribution of assets to him from his father's estate. The lien was the result of unpaid federal
income taxes for the years 1981 through 1988. The United States of America has moved for
summary judgment. Summary judgment is properly granted when, viewing the facts and
reasonable inferences in the light most favorable to the nonmoving party, it is clear that no genuine
issue of material fact remains and the case may be decided as a matter of law. Buller v. Buechler,
706 F.2d 844, 846 (8th Cir. 1983). If the moving party meets the initial burden of establishing the
nonexistence of a genuine issue, the burden shifts to the non-moving party to produce evidence of
existence of a genuine issue for trial. Celotex Corp. v. Catrett, 477 U.S. 317 (1986).
FACTS
In May of 1987, revenue officer Michael W. Ponte of the Internal Revenue Service (IRS) was
assigned the responsibility of collecting unpaid federal income taxes from Mettenbrink. Ponte
declaration, filing 8, para. 2. On May 27, 1987, the IRS assessed deficiencies against Mettenbrink
for the years 1981 to 1984, and sent him a notice and demand for payment. Id. at para. 5. Having
received no payment as of October 13, 1987, the IRS filed a notice of federal tax lien for the
assessments owed by Mettenbrink on his federal income taxes for the years 1981 through 1984. Id.
at para. 6. In May of 1989, Ponte, through his collection efforts, became aware of the fact that
Mettenbrink had an interest in the assets of his deceased father's estate, and that those assets were
to be distributed to beneficiaries. Id. at para. 8. Knowing that Mettenbrink had a history of failing
to file tax returns or to pay taxes, Ponte determined that a distribution of estate assets to
Mettenbrink would likely put those assets beyond the reach of the government unless promptly
seized. Id. On May 30, 1989, the IRS issued jeopardy assessments against Mettenbrink with respect
to tax years 1985 through 1989. Id. at para. 9. On June 1, 1989, Ponte unsuccessfully attempted to
personally serve Mettenbrink with a notice of jeopardy assessment, a notice of demand for
payment, computations of deficiency determinations, and a notification of right to appeal and right
of review. Id. at para. 10. Service was then perfected by certified mail, return receipt requested, on
June 1, 1989. Id. That day, Ponte served notices of levy on Firstier Bank of Grand Island,
Nebraska (the personal representative of the estate), the clerk of the Hall County Court, and the

Clerk of the Hall County District Court. Id. at para. 12. The notices of levy were to seize
Mettenbrink's interest in his father's estate assets for the purpose of collecting the 1981-84
assessments and the 1985-88 jeopardy assessments. Id. On June 2, 1989, Ponte released the levy
served on Firstier Bank, and served the bank with a second notice of levy. Id. at para. 14.
According to the government, as a result of Mettenbrink v. Thompson, CV89-L-288 (D. Neb.
October 6, 1989), in which a voluntary dismissal was entered, those levies were not honored. The
IRS also filed two notices of tax lien -- one on July 13, 1989, covering Mettenbrink's 1988 taxes and
penalty, and one on August 21, 1989, covering the 1985-88 assessments and 1988 penalty. Id. at
para. 15- 16. Ponte, on September 18, 1989, partially released the June levies and served a new
notice of levy on the bank with respect to the 1985- 88 liabilities. Id. at para. 17. ISSUES
Mettenbrink's complaint alleges that (1) there was no proper issuance and service of notice and
demand for payment prior to issuance of the levies and liens, (2) there is no basis to support the
jeopardy determination made by the IRS, (3) at known and unknown times, the IRS willfully or
with gross negligence made unauthorized disclosures of Mettenbrink's return and return
information to third parties, and (4) Ponte was never delegated the authority to issue levies or liens
upon property. On those bases, Mettenbrink asks me to void the levies, liens, and seizures, declare
his exclusive interest in the estate property, permanently enjoin the government from collecting on
that property, award him statutory and punitive damages for the alleged unauthorized disclosures,
grant a mandamus order compelling the government to afford him procedural due process, and to
declare the levies wrongful. Mettenbrink also asks me to grant him the costs of this suit and any
other relief that I deem just and proper. I deem it just and proper to grant the defendant's motion
for summary judgment.
DISCUSSION
SUBJECT MATTER JURISDICTION
Mettenbrink asserts that this court has jurisdiction pursuant to 28 U.S.C. sections 1331, 1340,
1346(a) & (e), 1361, and 2463. He also alleges that the United States of America has waived its
sovereign immunity and consented to suit under 28 U.S.C. sections 2410 and 2463, 26 U.S.C.
sections 7426 and 7431, and 5 U.S.C. section 702. Even if federal question jurisdiction (28 U.S.C.
section 1331) exists in this case, the barrier of sovereign immunity has not been waived. Murray v.
United States, 686 F.2d 1320, 1325 (8th Cir. 1982), cert. denied, 459 U.S. 1147 (1983). Similarly, 28
U.S.C. sections 1340 and 1361 do not constitute waivers of sovereign immunity. Essex v. Vinal, 499
F.2d 226, 231 (8th Cir. 1974), cert. denied, 419 U.S. 1107 (1975). Moreover, the scope of section
1340 is limited by the Anti-Injunction Act, 26 U.S.C. section 7421(a), which provides that "no suit
for the purpose of restraining the assessment or collection of any tax shall be maintained in any
court by any person . . .," with exceptions not applicable here. McGowan v. U.S., 601 F. Supp. 350,
351 (N.D. Ill. E.D. 1984). However, in this suit, Mettenbrink is contesting not the merits of the
assessment and tax lien, but the procedures used to implement them. Mettenbrink is currently
challenging the merits of the assessments made against him in a proceeding before the tax court.
See, Fritz declaration, filing 9, para. 5, and exhibit A, attached, a copy of a petition captioned
Mettenbrink v. Commn'r. of Internal Revenue, T.C. Docket No. 22935- 89, filed Sept. 18, 1989. In
relevant part, 28 U.S.C. section 1340 states: "The district courts shall have original jurisdiction of
any civil action arising under any Act of Congress providing for internal revenue. . . ." As
explained later in my discussion of the applicability of 28 U.S.C. section 2410, a distinction is
drawn between contesting the merits of an assessment and lien and contesting the procedures used

to implement them. A suit in the district court can be maintained where it challenges the
procedural regularity of a tax lien and the methods used to enforce it, but cannot be maintained if
it challenges the validity of the assessment, unless the tax is paid first. Schmidt v. King, 913 F.2d
837, 839 (10th Cir. 1990). Section 1346(a) provides for civil actions against the United States by
taxpayers seeking a refund of taxes. This presupposes that the taxpayer has already paid the taxes,
which is a situation that does not exist here. Mettenbrink cannot sue for a refund of a tax he has
not paid, therefore, section 1346(a) does not grant him jurisdiction to enjoin the IRS' collection
efforts. See, Flora v. U.S., 362 U.S. 145, 177 (1960). Section 1346(e) provides a district court with
original jurisdiction of any civil action against the United States provided in section 7429 of the
Internal Revenue Code (IRC). Section 7429 sets forth the method of review of jeopardy levy or
assessment procedures, with subsection (b) providing for judicial review where certain conditions
are met. Mettenbrink has not met those conditions. Specifically, IRC section 7429(b)(1) states that
judicial review proceedings are permitted within 90 days after the earlier of either (A) the day the
Secretary of the Treasury notifies the taxpayer of the Secretary's redetermination of the
reasonableness of the assessment or levy pursuant to a request for such a redetermination by the
taxpayer, or (B) the 16th day after the taxpayer makes a request for review. Mettenbrink chose to
not request a redetermination in accordance with the statute but, rather, chose to sit on his rights.
Since he failed to meet the conditions for having this court review his case, this court has no
jurisdiction pursuant to 28 U.S.C. section 1346(e). Also, I find that the Administrative Procedure
Act, 5 U.S.C. section 702, does not provide an independent basis for jurisdiction. Califano v.
Sanders, 430 U.S. 99, 107 (1977); Bruce v. U.S., 621 F.2d 914, 918 (8th Cir. 1980). By its terms, the
Act does not affect existing limitations on district court jurisdiction. Laguna Harmosa Corp. v.
Martin, 643 F.2d 1376, 1378-79 (9th Cir. 1981). Section 702 provides that a person aggrieved by an
agency action is entitled to judicial review, "PROVIDED, that . . . nothing herein (1) affects other
limitations on judicial review or the power or duty of the court to dismiss any action or deny relief
on any other appropriate legal or equitable ground; or (2) confers authority to grant relief if any
other statute that grants consent to suit expressly or impliedly forbids the relief which is sought." 5
U.S.C. section 702. But, IRC section 7429 is just such a limitation on judicial review, and it
specifically applies to Mettenbrink's position. When he chose to ignore his right to appeal via that
section, he lost his right to bring a suit under 5 U.S.C. section 702 in this court. Mettenbrink's
assertion that 28 U.S.C. section 2463, which provides that property taken or detained under any
revenue law shall not be repleviable, subject only to an order of a court having jurisdiction, does
not confer jurisdiction upon a court to hear a case contesting an assessment and levy on property.
The language, history, and caselaw surrounding section 2463 all indicate that it was not intended to
confer jurisdiction. Cooper Agency, Inc. v. McLeod, 235 F. Supp. 276, 285 (E.D. S.C. 1964), aff'd,
348 F.2d 919 (4th Cir. 1965). Mettenbrink's assertion that 26 U.S.C. section 7426 is a waiver of
sovereign immunity for his suit is also mistaken, as that section only waives sovereign immunity for
suits brought by non-taxpayers seeking to recover property allegedly wrongfully seized by the IRS.
F.P.P. Enter. v. U.S., 646 F. Supp. 713, 719-20 (D. Neb. 1986), aff'd, 830 F.2d 114 (8th Cir. 1987);
Shannon v. U.S., 521 F.2d 56, 59 (9th Cir. 1975), cert. denied, 424 U.S. 965 (1976). A demand for a
jury trial has also been made by Mettenbrink. If a trial is warranted, I find that he has no right to
a jury. To the extent that it can be shown that the government has waived its immunity from suit,
the right to a jury trial exists only where that right is one of the terms of the government's consent
to be sued. Lehman v. Nakshian, 453 U.S. 156, 160 (1981). I have found no such consent.
Mettenbrink alleges that the United States has consented to suit under 28 U.S.C. section 2410,
which states in part that "[t]he United States may be named a party in any civil action or suit in

any district court, . . . having jurisdiction of the subject matter . . . to quiet title to . . . real or
personal property on which the United States has or claims a mortgage or other lien." 28 U.S.C.
section 2410(a)(1). That section may not be used to collaterally attack the merits of a tax
assessment, but can be used to contest the procedural validity of a tax lien. Elias v. Connett, 908
F.2d 521, 527 (9th Cir. 1990); Pollack v. U.S., 819 F.2d 144, 145 (6th Cir. 1987) ; Schmidt v. King,
913 F.2d 837, 839 (10th Cir. 1990); Aqua Bar & Lounge, Inc. v. U.S., 539 F.2d 935, 939 (3d Cir.
1976); Daggett v. U.S., No. CV89-L- 33, slip op. at 3-5 (D. Neb. Jan. 4, 1991).
PROCEDURAL IRREGULARITIES
The following timetable is helpful in understanding the procedural irregularities alleged by
Mettenbrink. I have compiled it from the Certificate of Assessments and Payments for
Mettenbrink's federal income tax liabilities for the years 1981 through 1988, filing 8, exhibit 1, and
the declaration of Michael W. Ponte, the IRS revenue officer assigned the responsibility for
collecting Mettenbrink's unpaid taxes, who stated that "[t]he Certificate is a true and accurate
statement of the dates of assessments, the mailing dates of Notices and Demands, and the mailing
dates of Final Notices." Declaration of Ponte, filing 8, para. 4. Date Action ____ ______
May 29, 1987 assessment made and first notice and demand for payment of 1981-84 tax years
mailed
Aug. 3, 1987 fourth notice and demand for payment of 1981-84 assessments mailed
Oct. 13, 1987 notice of federal tax lien filed for taxes owing on 1981-84 tax years
March 6, 1989 miscellaneous penalty assessed for 1988; penalty notice and demand for payment
mailed
March 27, 1989 fourth notice and demand for payment on miscellaneous penalty mailed
May 30, 1989 jeopardy assessments made for Mettenbrink's 1985- 88 tax liabilities
June 1, 1989 jeopardy assessment documents (notice of jeopardy assessment, computation of
income and tax, notification of right of appeal and right of review, and notices and demands)
mailed by certified mail, return receipt requested, mailed to Mettenbrink's residence notices of
levy served on Firstier Bank, Grand Island, NE, Hall County Court, Grand Island, NE, and Hall
County District Court, Grand Island, NE, for 1981-88 tax liabilities and 1988 miscellaneous
penalty assessments
June 2, 1989 June 1, 1989, notice of levy on Firstier Bank, Grand Island, NE, released; new notice
of levy served
July 13, 1989 notice of federal tax lien filed for 1988 federal income tax liability and 1988
miscellaneous penalty assessment
Aug. 21, 1989 notice of federal tax lien filed for 1985-88 federal income tax liability and 1988
miscellaneous penalty assessment
Sept. 18, 1989 partial releases of all notices of levy on federal income tax liabilities for 1985-88 and
miscellaneous penalty assessment for 1988 served; new notices of levy on the same immediately

served Count I of Mettenbrink's complaint alleges that the IRS failed to issue and serve a valid
notice of assessment and demand for payment prior to serving any levies for tax years 1981-84 and
1985- 88. As can clearly be seen from the calendar set forth above, the first notice and demand for
payment of the 1981-84 assessment was mailed to Mettenbrink by the IRS on May 29, 1987, and
three more notices were sent between then and August 3, 1987. The provisions of Internal Revenue
Code (IRC) section 6303(a) were met. Count II of the complaint alleges that the IRS lacked a
sufficient basis for making jeopardy assessments on the 1985-88 delinquencies pursuant to IRC
section 6861(a). I disagree, and find that the IRS had a sufficient basis to believe that assessment or
collection of the deficiencies would be jeopardized by delay. The fact that IRS records showed no
tax returns filed or taxes voluntarily paid by Mettenbrink for the years 1981 to 1988 was a
sufficient basis. Mettenbrink's history of nonpayment of taxes and the sudden availability of assets
to pay delinquent taxes provided the IRS with a sufficient basis to make jeopardy assessments.
Other relevant provisions of IRC section 6861 were also met. IRC section 6861(b) provides that
notice and demand for payment need not precede a jeopardy assessment, but must be sent within
60 days after making the jeopardy assessment. Jeopardy assessment documents, which included
notice and demand for payment, were sent to Mettenbrink on June 1, 1989, shortly after the
jeopardy assessments were made. Also, IRC section 6861(c) states that the jeopardy assessment
may be made even though the taxpayer has a petition before the tax court, as does Mettenbrink.
The relevant provisions of IRC section 6861 were met. Since notice and demand for payment was
properly made, the question remains whether the levy procedure was proper. As for the 1981-84
assessment, the IRS must have given notice no less than 30 days before the day of the levy. IRC
section 6331(d)(2). The federal tax lien pertaining to the 1981-84 taxes was filed on October 13,
1987, while the fourth notice and demand for payment was mailed on August 3, 1987, which is
more than 30 days before the day of levy. Regarding the 1981-84 assessments and levies, I find that
the provisions of IRC section 6331 were met. The federal tax lien pertaining to the 1985-88 taxes
will be examined later in this memorandum. The IRS properly recorded Mettenbrink's liability as
required by IRC section 6203 for all years in question. Therefore, since the IRS followed proper
procedures in assessing liability for unpaid taxes, issuing notice and demand for payment and,
finally, levying upon property to satisfy the delinquency, I find that the lien pertaining to the
1981-84 assessments was valid. Mettenbrink further alleges that the 1985-88 jeopardy assessments
and levies were not served pursuant to proper IRS procedures, resulting in his being denied due
process. The jeopardy assessment documents containing a notice and demand were mailed to
Mettenbrink on June 1, 1989. A levy was served that same day, was released the next day, and
another levy issued to take the place of the first. No explanation is given for this irregularity. The
IRS clearly realized that even with a jeopardy assessment it must give a taxpayer a reasonable
period of time to fail or refuse to pay the tax owed, before levying on that taxpayer's property.
Commn'r of Internal Revenue. v. Shapiro, 424 U.S. 614, 617-18 (1976). "The conclusion is
inescapable . . . that a taxpayer in a jeopardy situation is to be given some opportunity, however
short, to fail or refuse to pay the tax." L.O.C. Indus., Inc. v. U.S., 423 F. Supp. 265, 273 (M.D.
Tenn. 1976). Mettenbrink states that he was given no time to receive the notices and pay his taxes.
This argument ignores two points. First, the reason that a jeopardy assessment even exists is
because the government has found that certain people steadfastly refuse to pay their taxes, and
that they will go to extraordinary means to conceal their assets from IRS attachment. When the
IRS finds an attachable asset in such a taxpayer's possession, it requires a means by which to
quickly and efficiently assess and levy on that property. Such an assessment is only made where the
IRS concludes that collection of a deficiency will be jeopardized by any delay, see, IRC section

6861(a), and notice must be made within 60 days after the assessment. Id. at section 6861(b). Such
was the case here. Second, the IRS, having admittedly issued the June levies prematurely, certainly
gave Mettenbrink a reasonable amount of time to fail or refuse to pay the tax owed before issuing a
levy on his bank account on September 18, 1989. The September levy issued more than three
months after the IRS mailed the jeopardy assessment documents on June 1, 1989, and meets any
argument Mettenbrink may have that the earlier levies gave him no time to respond, thereby
denying him due process. It is also arguable that the June levies were issued to seize Mettenbrink's
assets to the extent of his 1981-84 assessment of unpaid taxes. The record indicates that proper
notice was given in 1987 as to those deficiencies. To that end, the June levies were valid against the
1981-84 unpaid taxes. The September 1989 levy could then be applied against the taxes assessed for
the 1985-88 period. By September 18, 1989, Mettenbrink had surely received sufficient advance
notice that a levy was imminent. He failed to fully pay the tax owed, and there is no evidence in the
record that he attempted to do so. As the procedural validity of the process by which the tax liens
were instituted has been established, I find no basis for a quiet title action under 28 U.S.C. section
2410.
UNAUTHORIZED DISCLOSURES
Count III of the complaint alleges that the United States, acting through its agents, made
unauthorized disclosures of Mettenbrink's returns and return information in violation of IRC
section 7431(a) which states: If any officer or employee of the United States knowingly, or by
reason of negligence, discloses any return or return information with respect to a taxpayer in
violation of any provision of section 6103, such taxpayer may bring a civil action for damages
against the United States in a district court of the United States. However, section 7431(b) qualifies
section (a) by stating that "[n]o liability shall arise under this section with respect to any disclosure
which results from a good faith, but erroneous, interpretation of section 6103." IRC section 6103
sets forth the general rule that returns and return information shall be confidential, except as
authorized by the IRC. Section 6103 (k)(6) is also relevant because it provides an exception to the
rule, allowing for the disclosure by IRS officers and employees of taxpayer return information for
investigative purposes. In relevant part, the section states: An internal revenue officer or employee
may, in connection with his official duties relating to any . . . collection activity, or civil or criminal
tax investigation or any other offense under the internal revenue laws, disclose return information .
. . with respect to the enforcement of any other provision of this title. Such disclosures shall be
made only in such situations and under such conditions as the Secretary may prescribe by
regulation. IRS regulations further clarify that section. 26 C.F.R. section 301.6103(k)(6)-1(b)(6)
states that an officer or employee of the IRS is authorized to disclose return information "(6) [t]o
establish or verify the financial status . . . of the taxpayer against whom collection activity is or may
be directed, to locate assets in which the taxpayer has an interest, . . . or otherwise to apply the
provisions of the Code relating to establishment of liens against such assets, or levy on, or seizure,
or sale of, the assets to satisfy any such liability; . . . ." The alleged unauthorized and illegal
disclosures of information occurred when levies were served on Firstier Bank in Grand Island,
Nebraska, on June 1 and 2 of 1989. Mettenbrink alleges that other unauthorized and illegal
disclosures unbeknownst to him have also occurred, but provides no evidence to support his
allegation, therefore, I shall only consider the disclosures on June 1 and 2 of 1989. To support his
argument, Mettenbrink cites Rorex v. Traynor, 771 F.2d 383 (8th Cir. 1985) for the proposition
that "a disclosure in pursuance of an unlawful levy violates the confidentiality requirements of

section 6103(a) and is not authorized under section 6103(k)(6)." Id. at 386. I agree with the holding
in Rorex, but find that Mettenbrink's situation is exactly the opposite of the complaining taxpayer
in Rorex. In Rorex, the trial court determined that there was an unlawful levy, and that the
revenue agent issued a levy even though he knew the taxpayers had not neglected or refused to pay
their taxes. Id. at 387. Mettenbrink also cites to Barrett v. U.S., 795 F.2d 446 (5th Cir. 1986) to limit
the applicability of IRC section 6103(k)(6). However, Barrett makes it clear that disclosures of
information by an IRS agent to a bank for the purposes of obtaining information about a
taxpayer's bank account is not a violation of IRC section 6103(k)(6), as disclosures to a bank are
sometimes necessary in order to obtain information which is not otherwise reasonably available
elsewhere. Id. at 448-49. In Barrett, an IRS agent's actions were held unreasonable where, during
an investigation of a doctor, he sent letters to over 350 patients, informing them that the doctor was
under IRS investigation, and requesting documents concerning the patients' payments to the
doctor. Id. at 448. Accessing the doctor's bank records could have provided the same information
and would have been much more reasonable. Id. In this case, I have found that the levies in
question were lawful and, while they were premature, they were not illegal and have not been
alleged or shown to have prejudiced Mettenbrink in any attempt he may have made to pay any of
his delinquent taxes. At best, Mettenbrink has shown that Ponte, the revenue agent serving the
levies, acted in a good faith, but erroneous manner, in interpreting section 6103. IRC section
6103(k)(6) and 26 C.F.R. section 301.6103(k)(6)-1(b)(6) apply in this situation since Ponte was
acting so as "to apply the provisions of the Code relating to establishment of liens against such
assets, or levy on, . . . the assets to satisfy any such liability; . . . ." Id. See, Christensen v. U.S., 733
F. Supp. 844, 849 (D. N.J. 1990). I find that Ponte did not improperly release any return
information concerning Mettenbrink and, in releasing any information, ac ted in conformance with
the pertinent regulations.
DELEGATION OF AUTHORITY
Lastly, Count IV of the complaint alleges that no authority had been delegated to Ponte to issue
levies. Ponte states that as part of his duties he was "assigned responsibility for collecting unpaid
federal income tax liabilities which had been assessed by the Internal Revenue Service against
Robert L. Mettenbrink." Ponte declaration, filing 8, para. 2. He further declared that as a revenue
officer, he is a delegate of the Secretary of the Treasury with respect to collecting delinquent taxes.
Id. at para. 1. Furthermore, and contrary to Mettenbrink's professed belief, the Secretary of the
Treasury has delegated to others the authority to make assessments and levies. Title 26 C.F.R.
section 301.6331-1(a)(1) states in pertinent part that "[i]f any person liable to pay any tax neglects
or refuses to pay the tax . . . , the district director to whom the assessment is charged . . . may
proceed to collect the tax by levy." That section further states that "[l]evy may be made by serving
a notice of levy on any person in possession of . . . property . . . subject to levy. . . ." There is no
mention of which specific person or office holder must issue the levy. Unquestionably, the district
director charged with the responsibility of collecting the tax has the authority to issue a levy.
However, the director also has the power to delegate authority to lower officers. 26 C.F.R. section
301.6203-1 states that "[t]he district director . . . shall appoint one or more assessment officers."
See also, Barnes v. U.S., No. Civ. 89-1872, (CCH) 90-1 USTC para. 50,149 at p. 83,352, (W.D. Pa.
1990). Therefore, I find that revenue officer Ponte had been delegated the necessary authority to
serve levies upon Mettenbrink's property.
CONCLUSION

I find that no genuine issue of material fact exists in this case and that summary judgment for the
United States is proper as a matter of law. The majority of Mettenbrink's claims lack a
jurisdictional basis, and the remaining claims that are actionable can be decided as a matter of law.
IT IS ORDERED that the United States of America's motion for summary judgment, filing 7, is
granted.
Dated April 4, 1991.
BY THE COURT
Warren K. Urbom
Senior United States District Judge

Plaintiff-Counterclaim
Defendant-Appellee,
v.
HELEN LISLE,
Defendant-Counterclaim
Plaintiff-Appellant
Docket No. 92-15748

Date of Decision: August 17, 1993
Judge: per curiam
Summary
NINTH CIRCUIT AFFIRMS DISMISSAL OF TAXPAYER'S COUNTERCLAIM FOR
DISCLOSURE DAMAGES.
The government sued Helen Lisle to reduce tax assessments against her to judgment and to
foreclose tax liens against her real property. During the course of that action, the Fiducial Family
Preservation Trust paid Lisle's tax liability, and the government's case was dismissed over her

objection. Lisle refuse to cooperate with discovery requests and never produced documents
requested by the government. Lisle filed a counterclaim alleging that the notice of tax lien, dated
April 21, 1989, was issued in violation of section 6103 and, therefore, was an unauthorized
disclosure of return information. The district court granted the government's motion to dismiss
Lisle's counterclaim under Rule 37(b), Fed. R. Civ. P., as a sanction for her willful failure to
comply with the court's discovery order, and granted the government's motion for summary
judgment. (For a summary of the district court's opinion, see Tax Notes, June 8, 1992, p. 1373; for
the full text, see 92 TNT 115-16.) Lisle appealed. The Ninth Circuit, in an unpublished per curiam
memorandum, has affirmed, concluding that the district court did not abuse its discretion in
dismissing Lisle's counterclaim. The appeals court pointed out that information withheld by Lisle
was material to her claim and that the trial court had given her warnings and several months to
comply with the government's discovery requests. The appeals court also affirmed the summary
judgment in favor of the government, concluding that the Form 4340, Certificate of Assessments
and Payments, was sufficient proof that valid assessments had been made, and that the government
proved it had sent her notice and demand for payment. Full Text Provided by Tax Analysts.
Copyright 2002, Tax Analysts. All rights reserved.
DC No. CV-90-02746-FMS
MEMORANDUM /*/
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
Fern M. Smith, District Judge, Presiding
Submitted August 13, 1993 /**/
San Francisco, California
Before: Sneed, Poole, and Trott, Circuit Judges.
Appellant Helen Lisle timely appeals the dismissal of her claim against the United States for
wrongful disclosure of tax return information. The district court dismissed Ms. Lisle's claim
because of her failure to comply with discovery orders, and, as an alternative basis for dismissal,
granted the United States' motion for summary judgment. We affirm on both grounds.
I. FACTS AND PRIOR PROCEEDINGS
This case was originally filed by the United States to reduce certain tax assessments against Helen
Lisle to judgment and to foreclose its tax liens against certain real property. Ms. Lisle filed a
counterclaim alleging that the tax lien against her was invalid because no proper assessment had
been made against her and because no notices of assessment and demand for payment had been
issued to her. Ms. Lisle alleged that she was thus entitled to damages under 26 U.S.C. section 7431
for unauthorized disclosure of return information. During the pendency of the action, the Fiducial
Family Preservation Trust paid Ms. Lisle's tax liability, and the district court dismissed the
government's action upon the motion of all parties except Ms. Lisle, and over Ms. Lisle's objection.
Ms. Lisle's counterclaim remained. On August 9, 1991, the government noticed Ms. Lisle's
deposition for August 20, 1991. Ms. Lisle notified the government that she would not appear. On

September 16, 1991, the court issued an order directing both parties to comply with all discovery
rules. At a status conference on October 16, 1991, the court ordered Ms. Lisle to submit to a
deposition. (See also Order dated October 16, 1991, directing that all discovery relating to Ms.
Lisle's counterclaim, including her deposition, be completed by January 16, 1992.) The court also
advised Ms. Lisle that her contention that she did not have to produce IRS correspondence or to
testify about that correspondence because the records were already in possession of the IRS was
without merit and that failure to comply with the court's order could result in the dismissal of her
case. Despite the court's order, Ms. Lisle again refused to submit to a deposition, causing the
government to file a motion to dismiss, or, in the alternative, to compel discovery. The government
withdrew its motion when Ms. Lisle finally agreed to be deposed. Ms. Lisle appeared at her
deposition on December 13, 1991, however, she failed to produce the documents requested in the
deposition notice and refused to answer questions regarding the existence of those documents. The
government moved to dismiss Ms. Lisle's counterclaim pursuant to Federal Rule of Civil
Procedure 37(d) because of her refusal to provide documents and give testimony at her deposition.
The court concluded that because Ms. Lisle eventually attended her deposition, Rule 37(d) did not
authorize dismissal. The court determined, however, that dismissal was warranted under Rule
37(b) because Ms. Lisle had failed to comply with the court's order of September 16, 1991 directing
her to comply with the discovery rules, and more importantly, had failed to obey the court's order
of October 16, 1991 specifically requiring her to comply with the government's request for
deposition. The court found that Ms. Lisle violated that order by refusing to answer the
government's questions, by failing to produce the requested documents, and by steadfastly
objecting to the government's questions on grounds the court had already informed her were
meritless. The court noted that before imposing the sanction of dismissal it had to consider "'(1)
the public's interest in expeditious resolution of litigation; (2) the court's need to manage its
docket; (3) the risk of prejudice to the defendants; (4) the public policy favoring disposition of
cases on their merits; and (5) the availability of less drastic sanctions.'" Toth v. Trans World
Airlines, Inc., 862 F.2d 1381, 1385 (9th Cir. 1988) (citations omitted). Considering these factors, the
court found that dismissal was warranted because the information Ms. Lisle withheld went to the
heart of one of her key contentions: that she was not given notice and demand for payment of the
tax on which the April 14, 1989 lien notice was based. The court concluded that in fairness, it could
not allow Ms. Lisle to proceed on her claim when she repeatedly refused to cooperate in the
government's discovery directly related to that claim. The government also moved for summary
judgment dismissing Ms. Lisle's counterclaim on the grounds that there was no unauthorized
disclosure in violation of 26 U.S.C. section 7431. The district court granted the motion, concluding
that Ms. Lisle had failed to raise a material issue of fact regarding an unauthorized disclosure of
return information.
II.
JURISDICTION AND STANDARDS OF REVIEW
The district court had jurisdiction over the United States' action pursuant to 28 U.S.C. section 1340
and 26 U.S.C. sections 7402 and 7403.
/1/ The district court had jurisdiction over Ms. Lisle's counterclaim pursuant to 28 U.S.C. section
1331. This court has jurisdiction pursuant to 28 U.S.C. section 1291. We review the district court's
dismissal under Rule 37(b) for abuse of discretion. Toth, 862 F.2d at 1385. Moreover, the court's

determination that its orders were disobeyed is entitled to considerable weight. Id. We review de
novo the district court's grant of summary judgment. Federal Deposit Ins. Corp. v. O'Melveny &
Meyers, 969 F.2d 744, 747 (9th Cir. 1992). We must determine, viewing the evidence in the light
most favorable to the nonmoving party, whether there are any genuine issues of material fact, and
whether the district court applied the relevant substantive law. Id.
III.
DISCUSSION
A. DISMISSAL UNDER RULE 37(b)
Rule 37(b) authorizes the dismissal of an action for failure to obey an order to provide or permit
discovery. Fed. R. Civ. P. 37(b)(2)(C). The court's order of October 16, 1991 directing Ms. Lisle to
submit to a deposition was an order to provide or permit discovery under the Rule. See Fjelstad v.
American Honda Motor Co., 762 F.2d 1334, 1339 (9th Cir. 1985). Moreover, the court specifically
informed Ms. Lisle that her contention that she did not have to produce IRS correspondence or
testify about the correspondence because the records were already in possession of the IRS was
without merit, and that failure to comply with the order could result in dismissal. Ms. Lisle
disobeyed the court's order by failing to produce the documents requested in the deposition notice
and refusing to answer questions regarding the existence of those documents. As the district court
noted, the information Ms. Lisle withheld was material to her claim. The court gave Ms. Lisle
warnings and several months to comply with the government's discovery requests. Despite the
court's specific warning putting Ms. Lisle on notice that her case might be dismissed if she not did
comply with the court's order, Ms. Lisle did not cooperate with discovery, and continued to assert
objections that were groundless. The court acted within its discretion in dismissing Ms. Lisle's
counterclaim as a discovery sanction under Rule 37(b). Toth, 862 F.2d at 1385.
B. SUMMARY JUDGMENT
"Rule 56(c) mandates the entry of summary judgment, after adequate time for discovery and upon
motion, against a party who fails to make a showing sufficient to establish the existence of an
element essential to that party's case, and on which that party will bear the burden of proof at
trial." Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). Section 7431(a) of the Internal Revenue
Code establishes a cause of action and provides damages for the knowing or negligent disclosure of
return information in violation of any provision of 26 U.S.C. section 6103.
/2/ 26 U.S.C. section 7431(a). Accordingly, Ms. Lisle's burden was to demonstrate a violation of
section 6103, and that such violation was either knowing or negligent. Ms. Lisle contended that the
notice of tax lien dated April 14, 1989 was an unlawful disclosure of her tax return information in
violation of section 6103(a), because the assessments set out in the lien were invalid and because no
notices of assessment and demand for payment were issued to her. The government denied these
contentions and submitted proof on both issues.
1. THE ASSESSMENTS WERE VALID
As proof the assessments were properly made, the government submitted certified copies of Ms.
Lisle's Individual Master File ("IMF") transcript, the Summary Record of Assessment, and the
Certificate of Assessments and Payments (Form 4340) for the tax years to which the notice of tax

lien applied. Ms. Lisle produced no contrary evidence. A Certificate of Assessments and Payments
is sufficient proof, absent contrary evidence, of a valid assessment. Hughes v. United States, 953
F.2d 531, 535 (9th Cir. 1992), see also United States v. Zola, 724 F.2d 808, 810 (9th Cir.), cert.
denied, 469 U.S. 830 (1984). The Certificate of Assessments and Payments provided by the
government proved the validity of the assessments.
2. NOTICES AND DEMAND FOR PAYMENT WERE ISSUED
Ms. Lisle contended that the government failed to give her notice of each assessment and demand
for payment. However, at her deposition, she refused to say whether she received notice regarding
these matters and refused to produce correspondence she received from the IRS during the
relevant time periods. The IMF transcript submitted by the IRS and the Certificate of Assessments
and Payments established that notices had been sent to Ms. Lisle. Proof that notices had been sent
was sufficient; the government did not have to prove receipt. See United States v. Voorhies, 658
F.2d 710, 713 n.4 (9th Cir. 1981) (actual receipt of notices not statutorily required); see also United
States v. Chila, 871 F.2d 1015, 1019 (11th Cir.) (summary judgment proper where Certificate of
Assessment indicated notice had been sent, and although taxpayer denied he received notice, he
failed to affirmatively show it had not been sent), cert. denied, 493 U.S. 975 (1989). Ms. Lisle failed
to submit any contrary evidence indicating that notices had not been sent. Thus, she could not
maintain her claim that notices of the assessments and demand for payment were not issued to her.
The government provided proof that it did not violate 26 U.S.C. section 7431, and Ms. Lisle failed
to raise any genuine issue of material fact in opposition.
/3/ Accordingly, summary judgment was proper. Celotex, 477 U.S. at 322.
AFFIRMED.
FOOTNOTES
/*/ This disposition is not appropriate for publication and may not be cited to or by the courts of
this circuit except as provided by 9th Cir. R. 36-3.
/**/ The panel unanimously finds this case suitable for decision without oral argument. Fed. R.
App. P. 34(a); 9th Cir. R. 34-4.
/1/ We have considered and reject appellant's arguments that the district court did not have
subject matter jurisdiction over the United States' action.
/2/ Section 6103 "lays down a general rule that 'returns' and 'return information'. . . shall be
confidential" and prohibits their disclosure except as authorized by the Internal Revenue Code.
Church of Scientology v. Internal Revenue Serv., 484 U.S. 9, 10 (1987); 26 U.S.C. section 6103(a).
/3/ We do not reach the issue of whether improperly issued levies may constitute a violation of 26
U.S.C. section 6103.
END OF FOOTNOTES

REX FARRELL LARSEN,

Appellant(s),
v.
UNITED STATES OF AMERICA, AND STATE OF CALIFORNIA,
Appellee(s).
(In Re Rex Farrell Larsen, Debtor(s).)
Docket No. EC 90-2076-AsMeO

Date of Decision: April 30, 1991
Judge: per curiam
Summary
INDIVIDUAL MASTER FILE PRINTOUTS PROVE VALID ASSESSMENTS.
When Rex Farrell Larsen failed to file federal income tax returns for several years, the IRS filed
substitute returns and assessed tax liability for the years 1982, 1985, and 1986. The United States
then filed a notice of federal tax lien and levied upon Larsen's state retirement account. In
February 1990, Larsen filed a Chapter 7 petition. Larsen then filed an adversary complaint to
determine the dischargeability of the tax debt and the validity, extent, and priority of the federal
tax liens. Larsen sought to quiet title in his personal property. He also alleged unauthorized
disclosure of income tax information. The government filed a proof of claim and moved to dismiss
the adversary proceeding or for summary judgment. The government offered as evidence of valid
assessments Individual Master File (IMF) printouts. Larsen filed a motion to strike the
government's exhibits and a motion to defer consideration of the government's motion to permit
further discovery. The bankruptcy court granted the government's motions and denied both of
Larsen's motions. The Ninth Circuit, in a per curiam opinion, has affirmed the bankruptcy court's
decision, holding that the IMF report establishes valid assessments. The bankruptcy appellate
panel reasoned that the IMF report consists of the information included in the Form 23-C
assessment certificate and the Form 4340 certificate of assessments and payments. The panel noted
that Larsen conceded that the 4340 would have evidenced valid assessments. The panel also held
that the IMF report was sufficiently authenticated and satisfied the government's burden of
proving valid assessments.
Full Text

BK. No. 290-00860-B-7

Adv. No. 290-0190
Argued and Submitted on
March 21, 1991 at Sacramento, California
Filed: April 30, 1991
APPEAL FROM THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN
DISTRICT OF CALIFORNIA
Honorable David E. Russell, Bankruptcy Judge, Presiding
MEMORANDUM
Before: Ashland, Meyers, and Ollason, Bankruptcy Judges.
Debtor Rex Larsen appeals from an order of the bankruptcy court granting the United States'
motion for dismissal, or in the alternative, summary judgment, denying Larsen's motion to strike
certain exhibits offered as evidence by the United States, and denying Larsen's motion to defer
consideration of the United States' motion until further discovery could be conducted. We affirm.
BACKGROUND AND FACTS
Debtor Rex Larsen failed to file federal income tax returns for the years 1982 and 1985 through
1989. The Internal Revenue Service ("IRS") filed substitute returns for all of those years, upon
which Larsen's tax liability was allegedly assessed for the years 1982, 1985 and 1986. Liabilities
have not been assessed for 1987 through 1989 due to the bankruptcy stay. A chronology of relevant
events follows.
10/14/88 -- The United States files a Notice of Federal Tax Lien with the Sacramento County
Recorder.
6/2/89 -- The United States levies upon Larsen's retirement account with the State Retirement
Board, by Notice of Levy.
2/9/90 -- Larsen files a Chapter 7 petition.
5/11/90 -- Larsen files an adversary complaint to determine the dischargeability of the tax debt and
the validity, extent, or priority of the United States' liens. The complaint sets forth two causes of
action. The first cause of action sought to quiet title in Larsen's personal property based on invalid
liens obtained by the United States. The second cause of action alleged unauthorized disclosure of
income tax information.
5/23/90 -- The United States files a proof of claim listing income tax liabilities for the above listed
years.
8/13/90 -- The United States files a motion to dismiss the adversary proceeding, or in the
alternative, for summary judgment. The motion asserts the United States' assessments and liens to
be valid, and contends the bankruptcy court does not have jurisdiction to hear the unauthorized

disclosure action. The United States offers as evidence of valid assessments Individual Master File
printouts ("IMF reports").
9/7/90 -- Larsen files two motions, one to strike exhibits of the United States purporting to
demonstrate valid assessments, and the second to defer consideration of the United States' motion
to permit further discovery.
9/18/90 -- Hearing on the pending motions. The bankruptcy court grants summary judgment to the
United States, and denies both of Larsen's motions.
10/3/90 -- The bankruptcy court issues its order granting the United States' motion and denying
both Larsen motions.
Larsen was not granted discovery related to the following interrogatory propounded to the United
States: Identify any and all "assessment" documents and "supporting list or record", "which set
forth the name of the taxpayer, the date of the assessment, the character of the liability assessed,
the taxable period, if applicable, and the amounts assessed", which were created, as provided for
by Treasury Regulation, 26 C.F.R. section 301.6203-1, to formally record plaintiff's alleged tax
liability. While Larsen asserted this information to be paramount to his case, the bankruptcy court
denied discovery primarily on grounds of irrelevancy.
ISSUES
A. Whether the bankruptcy court erred in considering the IMF reports as evidence of valid
assessments made against Larsen.
B. Given the United States offered no evidence other than the IMF reports, whether the IMF
reports satisfied the United States' burden of proof to demonstrate valid assessments and liens.
C. Whether the United States properly authenticated the IMF reports, thus permitting
consideration by the bankruptcy court.
D. Whether the bankruptcy court properly denied Larsen's motion to defer consideration of the
United States' motion, thus disallowing pending discovery. Outside the above issues, Larsen
presented no evidence or argument opposing the United States' motion in the bankruptcy court,
and Larsen presents no new arguments on appeal. Larsen has thus not attempted to contest the
assessed amounts shown on the IMF reports, but simply argues the IMF reports do not evidence
valid assessments. Additionally, Larsen claimed in the bankruptcy court that the IRS disclosed
Larsen's tax information to the California State Controller in acquiring the lien on Larsen's
property. The United States argued the bankruptcy court does not have jurisdiction over this issue,
and the court agreed. Larsen does not raise the issue on appeal and is not unduly prejudiced in any
event, given Larsen may pursue the cause of action in district court. Moreover, upon cursory
review, the cause of action appears without merit, assuming the assessments and liens are valid.
STANDARDS OF REVIEW
Whether the IMF reports offered by the United States constitute prima facie evidence of valid
assessments satisfying the United States' burden of proof presents questions of law, reviewed de
novo by the panel. In re Comer, 723 F.2d 737, 739 (9th Cir. 1984). Whether the United States
properly authenticated the IMF reports presents an evidentiary matter, reviewed for an abuse of

discretion by the bankruptcy judge. Kisor v. Johns-Manville Corp., 783 F.2d 1337, 1340 (9th Cir.
1986). Whether the bankruptcy court erred in denying Larsen's motion to defer consideration is
also reviewed for an abuse of discretion. Landmark Development Corp. v. Chambers Corp., 752
F.2d 369, 373 (9th Cir. 1985); Garrett v. City and County of San Francisco, 818 F.2d 1515, 1518
(9th Cir. 1987). Finally, whether the bankruptcy court properly granted the United States' motion
for dismissal, or in the alternative, summary judgment, is reviewed de novo. In re Doyle, 70 B.R.
106, 107 (9th Cir. BAP 1986); In re New England Fish Co., 749 F.2d 1277, 1280 (9th Cir. 1984).
DISCUSSION
A. THE IMF REPORTS EVIDENCE VALID ASSESSMENTS MADE AGAINST LARSEN.
In granting the United States' motion for summary judgment, the bankruptcy court relied heavily
upon the IMF reports. Larsen contends the IMF reports do not evidence valid assessments and
therefore the related lien is invalid. To determine the merit of Larsen's contention, the IRS
assessment procedure must be examined. The proper procedure for assessment is described in
Treas. Reg. section 301.6203-1: * * * The assessment shall be made by an assessment officer signing
the summary record of assessment. The summary record, through supporting records, shall
provide identification of the taxpayer, the character of the liability assessed, the taxable period, if
applicable, and the amount of the assessment. . . . If the taxpayer requests a copy of the record of
assessment, he shall be furnished a copy of the pertinent parts of the assessment which set forth the
name of the taxpayer, the date of the assessment, the character of the liability assessed, the taxable
period, if applicable, and the amounts assessed. The process of assessment is further described by
M. Saltzman, IRS Practice and Procedure at 10-4 to 10-5 (1981): On any date, the total tax liability
of all taxpayers for each type of tax to be assessed on that day is summarized on Form 23- C,
'Assessment Certificate.' It sets forth the types and amounts of tax to be assessed on the date.
When signed by an assessment officer in the service center, it constitutes an assessment for
purposes of the Code. It follows then that the date of the assessment is the date the summary
record is signed by the assessment officer. Because the Assessment Certificate is a summary, it is
only through supporting records that the taxpayer, type of tax, taxable period, and specific amount
of tax can be identified. If a taxpayer requests a copy of the assessment, however, the service center
must furnish a statement that sets forth the name of the taxpayer, the date of the assessment, the
type of liability assessed, the applicable period, and the amount assessed. While the above passage
demonstrates that a valid assessment is generally evidenced by a Form 23-C Assessment Certificate
("23-C"), courts have held introduction of a separate document, a form 4340 Certificate of
Assessments and Payments ("4340"), also establishes the tax has been properly assessed. M.
Saltzman, IRS Practice and Procedure, 1990 Cumulative Supplement No.2, at S10-1 (1990). In
United States v. Miller, 318 F.2d 637 (7th Cir. 1963), the United States brought an action to collect
unpaid estate taxes. In affirming the district court judgment for the United States, the appeals
court stated: "The district court properly considered the copy of the official Certificate of
Assessments and Payments submitted by the Government in ruling on the motion for summary
judgment. (citations omitted.) That document shows that assessment entries were made . . . in the
manner prescribed by the statute and the applicable regulation." Id. at 639. More recent cases
have reached results similar to Miller. See, e.g., United States v. Dixon, 672 F. Supp. 503, 506 (M.D.
Ala. 1987) (in the context of unpaid income taxes, holding the 4340 forms constituted presumptive
proof of valid assessments); United States v. Nuttall, 713 F. Supp. 132, 135 (D. Del. 1989) ("A

presumption of correctness attaches to assessments as detailed in the Form 4340."). These cases
clearly demonstrate the 4340 evidences valid assessments have been made against the taxpayer.
Larsen apparently concedes introduction by the United States of 4340 forms for the disputed years
would indeed have evidenced valid assessments. However, while the United States purported to
introduce 4340 forms, copies of IMF reports were offered instead. We must thus further examine
the relationship between the 4340 and the IMF report to determine whether the IMF report alone
evidences valid assessments. We conclude the IMF report accomplishes this goal. The IMF report
primarily consists of "a breakdown of all information relevant to the tax status of the individual
concerning the filing of federal income tax forms, the payment of taxes, refunds due, filing status,
number of children, dates of filings, audits, etc." United States v. Buford, 889 F.2d 1406, 1407 n.1
(5th Cir. 1989). This is precisely the type of information included in the 23-C and 4340, as
described in Treas. Reg. section 301.6203-1. Furthermore, the 4340 is routinely prepared by taking
information from the IMF report. Buford, 889 F.2d at 1408. The fact that the 4340 is prepared
using the IMF report reduces Larsen's argument to the contention that a source document cannot
be used as evidence instead of the compiled document. This argument clearly lacks merit. Because
the IMF report embodies the same information contained in the 4340, the IMF reports should be
considered proper and probative evidence of valid assessments made by the IRS.
B. THE IMF REPORTS SATISFY THE UNITED STATES' BURDEN OF PROOF.
The decisions above discussing the validity of the 4340 form generally state introduction of the
form establishes a presumption of validity as to the assessments contained therein. We conclude
this presumption also applies to assessments included in the IMF reports. Further, we conclude the
IMF reports satisfy the United States' burden of proof to demonstrate valid assessments. We have
identified only one case suggesting the IMF reports might not satisfy the United States' burden of
proof, Weimerskirch v. Commissioner, 596 F.2d 358 (9th Cir. 1979). The Ninth Circuit in
Weimerskirch held the United States could not rely solely on the presumption of correctness where
the "deficiency determination [was] not supported by the proper foundation of substantive
evidence. . . ." Id. at 362. However, Weimerskirch involved a case of unreported income, not failure
to file income tax returns as in the present case. We have identified no case applying Weimerskirch
where a taxpayer failed to file returns. Further, more recent Ninth Circuit authority has held
Weimerskirch presents a limited exception to the general rule that IRS determinations are
presumptively valid. Karme v. Commissioner, 673 F.2d 1062, 1065 (9th Cir. 1982). Extending the
Weimerskirch exception to the present case thus appears unwarranted, and we therefore conclude
the United States has satisfied its burden of proof related to establishing that the IMF report
assessments are valid.
C. THE IMF REPORTS HAVE BEEN SUFFICIENTLY AUTHENTICATED.
Larsen contends the United States' purported authentication of the IMF reports specifically refers
instead to Certificates of Assessments and Payments (4340 forms), indicating a failure of
authentication. We conclude this mislabelling by the United States constitutes harmless error. The
government contends the IMF reports are self-authenticating by virtue of Fed. R. Evid. 902(1) and
(4) and therefore no further authentication was required. We agree. Rule 902(4) states: Extrinsic
evidence of authenticity as a condition precedent to admissibility is not required with respect to . . .
(4) A copy of an official record or report or entry therein . . . certified as correct by the custodian
or other person authorized to make the certification, by certificate complying with paragraph (1),

(2), or (3) of this rule. . . . The certification accompanying the IMF reports bears the appropriate
seal and signature and therefore complies with paragraph (1) of Rule 902. The IMF reports are
copies of official IRS records. Therefore, Rule 902(4) applies and the method of authentication of
the IMF reports is proper. The United States does not address the mislabelling issue. However,
because the IMF reports contain essentially the same information as would be contained in a 4340
form, we conclude the authentication's failure to specifically refer to the IMF reports constitutes
harmless error. No prejudice has resulted as the same information is being authenticated by the
IRS. Further, only delay would be accomplished by disallowing the offered authentication of the
IMF reports. Also, any equitable considerations must tip in favor of the United States, given
Larsen has completely failed to comply with IRS filing requirements. We find no abuse of
discretion by the bankruptcy court in considering the IMF reports properly authenticated.
Brafman v. United States, 384 F.2d 863 (5th Cir. 1967), cited by Larsen, is distinguishable from the
present case. In Brafman, the United States sought to collect from the transferee of an estate for
unpaid estate taxes. The United States apparently offered assessment certificates, 23-C forms, to
demonstrate the related assessments were valid. However, the forms were not signed, as required
by Treas. Reg. section 301.6203-1. The Fifth Circuit held the 23-C forms failed to evidence valid
assessments because they lacked the required signatures. Id. at 866. The present case is
distinguishable in that IMF reports were offered by the United States, not 23-C forms. IMF reports
are not generally signed and courts have held the IMF reports are sufficient evidence of valid
assessments. See, e.g., Buford, 889 F.2d at 1409. Further, we would question the strict application
of assessment procedures, as in Brafman, to the present case, effectively giving Larsen the benefit
of any doubt despite not having filed tax returns in accordance with IRS requirements.
D. THE BANKRUPTCY COURT DID NOT ABUSE ITS DISCRETION BY DENYING THE
MOTION TO DEFER CONSIDERATION.
Larsen sought by this motion to conduct further discovery solely related to potential procedural
irregularities by the IRS in assessing Larsen's tax liability. Larsen contends the response to the
interrogatory propounded as noted above would "prove or disprove plaintiff's case." However,
because no response was received, Larsen argued facts remained in the United States' possession
which would justify Larsen's position of procedural irregularity, sufficient to warrant continuance
under Fed. R. Civ. P. 56(f). The bankruptcy court denied the motion based on its determination
that the assessments were proper. Assuming the IMF reports are sufficient evidence to support an
assessment, as we concluded above, we further conclude the bankruptcy court did not abuse its
discretion in denying Larsen's motion to defer consideration. Larsen cites cases holding summary
judgment improper where pertinent discovery is pending. Sames v. Gable, 732 F.2d 49, 52 (3d Cir.
1984); Schering Corp. v. Home Ins. Co., 712 F.2d 4, 10 (2d Cir. 1983). This is unquestionably the
rule. However, Larsen fails to set forth how the evidence sought will defeat the United States'
motion for summary judgment. Larsen asserts in his original complaint that the IRS failed to
respond to discovery because the documents sought could not be located. Larsen implies failure to
locate these documents would prove that the assessments were not valid. Larsen, though, fails to
understand the bankruptcy court's ruling finding the IRS assessments valid, properly evidenced by
the IMF reports. Thus the United States is not required to produce any additional evidence to
prevail. The bankruptcy court did not abuse its discretion by denying Larsen's motion to defer
consideration. CONCLUSION
The bankruptcy court order is affirmed in all respects. Larsen has failed to meet his burden of

opposition to the United States' motion. Further, the bankruptcy court did not abuse its discretion
in denying Larsen's motions to strike the IMF reports and to defer consideration of the United
States' motion.

American Rights Litigators
25525 State Road 46, Suite 2
Mt. Plymouth, Florida 32776
Phone: (352) 383-9100 Fax: (352) 383-0808
“Defending the Rights of Americans”
American Rights Litigators (ARL) membership is $150 per year for a single person and
$200 per year for a married couple, Corporation, Partnership or Trust.
Member’s Full Name (First, Middle, Last): Male Female

Spouse’s Full Name (First, Middle, Last): Male Female
Member’s SS# Spouse’s SS#
Company Name: (if company is becoming a member): EIN:
Trust Name: (if trust is becoming a member): EIN:
Trustee Name: (if applicable): Trust Creation Date:
Street Address:
City: State: Zip Code: County:
E-mail Address:
**You must provide us with a current phone number where you can be reached in a timely manner, or your application will not be accepted**
Home Phone #: Fax #:
Office Phone #: Cell Phone/Other #:
Member’s Occupation: Spouse’s Occupation:
Signature(s):
Please circle tax years you have filed a return: __________________, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998
1999, 2000, 2001, 2002
Please list the tax years you have NOT filed:
Where did you hear about ARL?
FUNDS ATTACHED TO YOUR APPLICATION:
ARL Membership Fee $

Additional funds for account credit/other services $
(check or money order) Total $
Your ARL membership is good for one full year (12 months). In order to continue using our services after the
year has passed, you must renew your membership in a timely manner (a Renewal Notice will be sent to by mail
about 30 days prior to it’s due date). Your membership and Power of Attorney (POA) will be revoked if we
haven’t received anything from you within 30 days after your expiration date). If you decide to terminate your
membership with us, please let us know in writing so that, if needed, we can notify the IRS that the POA no longer
represents you.
Revised March 2003
Phone: (352) 383-9100 Fax: (352) 383-0808
Please accept our sincere thanks for your inquiry and interest in American Rights Litigators (ARL).
Accompanying this letter you will find some brief information about our services. Please take a few
minutes to read this information thoroughly before you make your next call to the ARL office.
Also, you will find an application for membership and a fee schedule. If you decide these services are for
you, please complete the application form and mail it, along with your check or money order (made
payable to Eddie Kahn) in the proper amount, to the above address.
Due to the Attorney and CPA's modest fee structure and the enormous demand for their services, they
are not able to offer you personalized telephone consultations. They will deal promptly and effectively
with the correspondence you receive from the IRS. Thank you for your understanding regarding this
matter.
Once your completed Power of Attorney form is received, the IRS is supposed to correspond with your
POA and send a copy to you. However, if you receive correspondence from the IRS, please make sure
that we have received it as well. PLEASE DO NOT FAX YOUR IRS COMMUNICATIONS TO ARL
unless you have money in your account. Please be assured that the ARL staff will contact you whenever
we find it essential to do so. We ask that you will call ONLY for the most urgent IRS related matters.
Please understand that the ARL staff is not capable of giving legal advice. Your POA can correspond
with the IRS on your behalf, in order to develop a proper administrative record. However, your POA
will NOT represent you in court, except by special arrangement between yourself and the lawyer. If you
should get a call from IRS, simply direct them to call your Power of Attorney at (352) 383-9100. It is
wise not to engage in conversation with them over the phone. If they tell you they don’t have a copy of
your Power of Attorney, either fax or mail them a copy. Always feel free to contact our office if you
need a copy of your signed POA.
If you feel comfortable dealing with the IRS without assistance, by all means do so. You may also
consider using our UCC services. However, ARL was created specifically for those who do not feel
comfortable enough to deal with IRS matters themselves. Should you desire assistance, please complete
the application and mail it to ARL with a check or money order with the appropriate amount. Again,
please MAIL, (do not fax) all applications to the ARL office.
Very Truly Yours,
Eddie Kahn, General Manager
Revised March 2003

WHAT YOU NEED TO KNOW ABOUT AMERICAN RIGHTS LITIGATORS
American Rights Litigators (ARL) was established in 1996 to help Americans just like you.
Professionals such as lawyers, CPAs, accountants, and paralegals work with the ARL office support
staff and specifically concentrate on IRS matters. However, neither ARL or your Power Of
Attorney can offer any performance guarantee on our services.
From the time you receive your first IRS letter or Notice, your POA will be prepared to handle all
of the necessary responses and inquiries. The effectiveness of their service will be increased if you
mail your IRS letter with the correct amount of funds immediately after you receive it (you can fax it
in if you have money in your account). The longer you wait, the more difficult it will be for our staff
to help you. Please do not delay!
The POA form (IRS form 2848) gives the lawyer and CPA identified therein your limited authority
to communicate with the IRS on your behalf. Once the IRS receives your POA form, they should
communicate with your POA and may transfer your file to Florida if it is not already in their
Examination or Collection Department.
It is very important that you understand the Power of Attorney form. The completed Power of
Attorney form only permits those listed on it to act on your behalf with the IRS for administrative
matters. That is all they are empowered to do for you. For other legal advice or services, please
consult your POA, lawyer, or local counsel regarding a particular matter.
Sometimes your POA will be able to stop the IRS process, while other times they will not. Please
understand that there is no simple or single solution to any situation. However, we do have the
resources to help you deal with the IRS properly and lawfully regardless of the situation.
Your POA is only prepared to assist you in dealing directly with the IRS. They are not able to assist you
in dealing with State Income Tax issues.
NOTE: We also provide a non-POA service using the Uniform Commercial Code (UCC). For
info on our UCC and IMF services, please contact our office or send a blank e-mail to ucc@arl.cc or
imf@arl.cc to receive an automatic informative one way e-mail. If you choose to go the UCC route
then it will require more effort on you part. The POA can not submit anything on your behalf – we
will generate the paperwork and send it to your for signatures and mail processing.
Revised March 2003

The Most Frequently Asked Questions & Answers
1Q. What do I do when I receive correspondence from the IRS?

A. If you do not have money in your account, mail in the appropriate payment and either your Power of Attorney (POA) will
respond as quickly as possible, or a response will be generated and sent to you for signatures and mailing (if you’ve decided to use
our other services). If you do have money in your account, you may fax it to ARL.
2Q. What do I do if the IRS refuses to honor my Power of Attorney (POA)?

A. They can not refuse it. Mail or fax the refusal letter and your POA will handle it at no extra charge.
3Q. Do I get a copy of the response you send to the IRS?

A. Yes. ARL will mail you a copy at the same time it is mailed to the IRS. If you send in a response on your own, please make sure
that you make a copy for your records and ours.
4Q. What if my bank account, employer, stock broker, etc. receives a Notice of Levy?
A. Mail it to ARL with appropriate payment and your POA will respond to your bank, employer, stock broker, etc. (if you have
money on account, you may fax it).
5Q. If my bank honors the levy, may I sue them?

A. Yes. But you will need to get the assistance of your own local counsel to file the suit.
6Q. If I file a suit against the bank, etc. for honoring the levy am I likely to win?
A. The odds are slim.
7Q. How do I prepare to be successful in defending myself from the IRS?

A. Divest yourself of all assets and income sources. If you have nothing, there will be nothing for the IRS (or anyone else) to seize.
Learn to control things; don't own them. This is one of the secrets of the Rockefeller's, Hunt's, Mellon's, etc.
8Q. How do I divest myself?

A. You can divest yourself by selling your assets and/or using asset protection techniques such as trusts, limited partnerships,
offshore entities, etc.
9Q. How long does it take before the IRS will leave me alone?
A. They have stopped after the first response letter for some clients and have never stopped as of yet for others.
10Q. How many times will the lawyer/CPA have to respond to the IRS ?
A. See the above question and answer. The lawyer/CPA will respond to every letter that is received from the IRS that you authorize
them to answer.
11Q. I just sent you a letter that I received from the IRS and now the IRS has sent me another letter. What do I do?
A. IRS letters are computer generated. From the time the letter is printed it could take 3 days before it is mailed and another 3 days
before you receive it. If you have not responded in the number of days that they have stated on your letter the computer will
generate another letter. That is why it is important that you mail us your letter and response money as quickly as possible to
avoid additional IRS letters.
12Q. Does the lawyer/CPA handle any state tax issues?

A. No, because they would have to be licensed in every state. But if you have state issues, check into our UCC services.
13Q. If I have a Power of Attorney why do I keep getting letters from the IRS?
A. In many cases the IRS will continue to contact you because they feel they will have better chance of success getting money from
you than from your Power of Attorney.
14Q. Does my POA work for ARL?

A. No, being a member of ARL grants you access to the Lawyer, CPA and other Professionals that we have negotiated reduced prices
for on your behalf. Additional services are available from these professionals and you can negotiate fees with that professional.
15Q. Are other services available?

A. Yes. We provide IMF decoding and UCC document preparation - please contact our office for information, or send a blank e-
mail to imf@arl.cc or ucc@arl.cc to receive an automatic informative one-way e-mail.
Revised March 2003

Phone: (352) 383-9100 Fax: (352) 383-0808
Services & Fees
1. Power of Attorney (POA)/Annual Membership

Single Person $150.00
Married Couple $200.00
Trusts, Corporations, Partnerships, etc. $200.00
2. POA Response Letter $50.00

Follow-up Letter (i.e. Complaint) $50.00
3. CPA fee for telephonic Collection Due Process Hearing $100.00
4. POA Individual Master File (IMF) or Business Master File (BMF) request $20.00
5. IMF/BMF Decoding (fee is the amount shown per year) $180.00
6. Misc. Privacy Act Request/Freedom of Information Act Request $35.00
7. UCC Paperwork (UCC-1 Financing Statement, Security Agreement, Treasury Filing)

Single Person $300.00
Married Couple $400.00
Family $500.00
8. UCC Charge Back $100.00
9. Misc. UCC Response (i.e. CP515/CP518) $50.00
Please make all checks and money orders payable to “Eddie Kahn”
Revised March 2003

Form 2848 (Rev. 12-97) Page 2
7 Notices and communications. Original notices and other written communications will be sent to you and a copy to the
first representative listed on line 2 unless you check one or more of the boxes below.
a If you want the first representative listed on line 2 to receive the original, and yourself a copy, of such notices or
communications, check this box ©
b If you also want the second representative listed to receive a copy of such notices and communications, check this
box ©
c If you do not want any notices or communications sent to your representative(s), check this box ©
8 Retention/revocation of prior power(s) of attorney. The filing of this power of attorney automatically revokes all earlier
power(s) of attorney on file with the Internal Revenue Service for the same tax matters and years or periods covered by
this document. If you do not want to revoke a prior power of attorney, check here ©
YOU MUST ATTACH A COPY OF ANY POWER OF ATTORNEY YOU WANT TO REMAIN IN EFFECT.
9 Signature of taxpayer(s). If a tax matter concerns a joint return, both husband and wife must sign if joint representation is
requested, otherwise, see the instructions. If signed by a corporate officer, partner, guardian, tax matters partner, executor,
receiver, administrator, or trustee on behalf of the taxpayer, I certify that I have the authority to execute this form on behalf
of the taxpayer.
© IF NOT SIGNED AND DATED, THIS POWER OF ATTORNEY WILL BE RETURNED.
Signature Date Title (if applicable)
Print Name
Print Name
Part II Declaration of Representative
Under penalties of perjury, I declare that:

● I am not currently under suspension or disbarment from practice before the Internal Revenue Service;
● I am aware of regulations contained in Treasury Department Circular No. 230 (31 CFR, Part 10), as amended, concerning
the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries, and others;
● I am authorized to represent the taxpayer(s) identified in Part I for the tax matter(s) specified there; and
● I am one of the following:
a Attorney—a member in good standing of the bar of the highest court of the jurisdiction shown below.
b Certified Public Accountant—duly qualified to practice as a certified public accountant in the jurisdiction shown below.
c Enrolled Agent—enrolled as an agent under the requirements of Treasury Department Circular No. 230.
d Officer—a bona fide officer of the taxpayer’s organization.
e Full-Time Employee—a full-time employee of the taxpayer.
f Family Member—a member of the taxpayer’s immediate family (i.e., spouse, parent, child, brother, or sister).
g Enrolled Actuary—enrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C. 1242 (the
authority to practice before the Service is limited by section 10.3(d)(1) of Treasury Department Circular No. 230).
h Unenrolled Return Preparer—an unenrolled return preparer under section 10.7(c)(viii) of Treasury Department Circular
No. 230.
© IF THIS DECLARATION OF REPRESENTATIVE IS NOT SIGNED AND DATED, THE POWER OF ATTORNEY WILL
BE RETURNED.
Designation—Insert Jurisdiction (state) or

Signature Date
above letter (a–h) Enrollment Card No.
a FL
Form 2848 (Rev. 12-97) Page 2
7 Notices and communications. Original notices and other written communications will be sent to you and a copy to the
first representative listed on line 2 unless you check one or more of the boxes below.
a If you want the first representative listed on line 2 to receive the original, and yourself a copy, of such notices or
communications, check this box ©
b If you also want the second representative listed to receive a copy of such notices and communications, check this
box ©
c If you do not want any notices or communications sent to your representative(s), check this box ©
8 Retention/revocation of prior power(s) of attorney. The filing of this power of attorney automatically revokes all earlier
power(s) of attorney on file with the Internal Revenue Service for the same tax matters and years or periods covered by
this document. If you do not want to revoke a prior power of attorney, check here ©
YOU MUST ATTACH A COPY OF ANY POWER OF ATTORNEY YOU WANT TO REMAIN IN EFFECT.
9 Signature of taxpayer(s). If a tax matter concerns a joint return, both husband and wife must sign if joint representation is
requested, otherwise, see the instructions. If signed by a corporate officer, partner, guardian, tax matters partner, executor,
receiver, administrator, or trustee on behalf of the taxpayer, I certify that I have the authority to execute this form on behalf
of the taxpayer.
© IF NOT SIGNED AND DATED, THIS POWER OF ATTORNEY WILL BE RETURNED.
Print Name
Print Name
Part II Declaration of Representative
Under penalties of perjury, I declare that:

● I am not currently under suspension or disbarment from practice before the Internal Revenue Service;
● I am aware of regulations contained in Treasury Department Circular No. 230 (31 CFR, Part 10), as amended, concerning
the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries, and others;
● I am authorized to represent the taxpayer(s) identified in Part I for the tax matter(s) specified there; and
● I am one of the following:
a Attorney—a member in good standing of the bar of the highest court of the jurisdiction shown below.
b Certified Public Accountant—duly qualified to practice as a certified public accountant in the jurisdiction shown below.
c Enrolled Agent—enrolled as an agent under the requirements of Treasury Department Circular No. 230.
d Officer—a bona fide officer of the taxpayer’s organization.
e Full-Time Employee—a full-time employee of the taxpayer.
f Family Member—a member of the taxpayer’s immediate family (i.e., spouse, parent, child, brother, or sister).
g Enrolled Actuary—enrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C. 1242 (the
authority to practice before the Service is limited by section 10.3(d)(1) of Treasury Department Circular No. 230).
h Unenrolled Return Preparer—an unenrolled return preparer under section 10.7(c)(viii) of Treasury Department Circular
No. 230.
© IF THIS DECLARATION OF REPRESENTATIVE IS NOT SIGNED AND DATED, THE POWER OF ATTORNEY WILL
BE RETURNED.
Designation—Insert Jurisdiction (state) or

Signature Date
above letter (a–h) Enrollment Card No.
b TX
God's Eighth Commandment is: "Thou Shall Not Steal."
God's Eighth Commandment is: "Thou

Shall Not Steal."
That Command, the REAL LAW, is CLEAR! It doesn't imply in anyway that it's OK to steal if
stealing is renamed a tax, fine, or revenue-enhancement by Congress so "BIG-brother"
government's "Legalized" crime of stealing via tax-extortion will appear lawful, necessary and
moral.
No matter how one tries to make stealing appear moral by calling it something else - taking that
which belongs to another without his/her truthfully informed, willing and uncoerced consent...IS
stealing! All forms of stealing violates GOD'S LAW!
To vote for, or share in the proceeds of a "legalized theft"" even when called welfare, entitlements,
or government grants is aiding & abetting the crime of stealing; which makes a recipient of
"tax-loot" ALSO a robber...violating GOD'S LAW!
All socialism, no matter if called Liberalism, Communism, Nazism, Fascism or Welfarism (often
called Democracies)- EXIST ON "legalized theft" of the wealth production, earnings and savings of
millions of misinformed laboring people.
Wealth is NOT little pieces of paper called dollar-bills. Wealth is: food, clothing, housing, cars
etc...for the sustaining and enjoyment of life. Governments DO NOT create wealth. ALL wealth
comes from the earth by the application of mind and muscle. This being true, ONLY workers and
their helpers create wealth! BIG-governments use Fear & Force to steal it, consume it...and use
some of which it steals via taxes, fines and seizures, to BRIBE voters. All of which violates: GOD'S
LAW!!
http://www.eddiekahn.com/gods_eighth_commandment_is_.htm [1/13/2004 8:14:15 PM]

Federal Legistive Jurisdiction in Florida
Federal Legislative Jurisdiction in Florida

These are documents that we found in the Florida Secretary of State's Office regarding federal
legislative jurisdiction in Florida. According to the Notice of Acceptance, and the court cases that
are listed in 40 U.S.C.A. § 3111 & 3112 (formally 40 U.S.C.A. § 255), the federal government
acknowledges that they have no legislative jurisdiction in Florida absent the state ceding the land
and the federal government accepting the legislative jurisdiction of that specific property. Absent
the Notice of Acceptance, legislative jurisdiction remains with the state. In layman's terms, that
simply means that civil and criminal federal law does not apply on that property, but only state
law.
Once the property is purchased by the United States Government, the government can then apply
to the state for cession of that property. See Deed of Cession and also included is a List of Deed of
Cession in Florida.
Anyone should be able to go to their Secretary of State office and request all Notice of Acceptances
and Deeds of Cession that have been done in their state. Why would anyone want to do this?
Reason: Where the act took place determines whether the federal government or state government
has legislative jurisdiction to prosecute the case . If it took place within the state on land that had
been ceeded and legislative jurisdiction been accepted, the federal government could prosecute the
case. If those two elements don't exist, the federal government can not prosecute the case (see
Adams v. US 319 US 312 (1943)). Also, 40 U.S.C.A. § 3111 and 3112 (formally 40 U.S.C.A. § 255).
icon below.
http://www.eddiekahn.com/federal_legistive_jurisdiction.htm (1 of 2) [1/13/2004 8:14:30 PM]

Federal Legistive Jurisdiction in Florida
http://www.eddiekahn.com/federal_legistive_jurisdiction.htm (2 of 2) [1/13/2004 8:14:30 PM]

We are the Church
WE ARE THE CHURCH

SECTION I
WHAT IS A CHURCH?
1. The Christian Church is not a building, but is the flesh and blood men and women, who make up
the body of Jesus the Christ, proclaiming and teaching the gospel of Christ, as it is written; "he is
the head of the body, (the Church), who is the beginning, the first born from the dead", Col 1:18,
and, "ye are the body of Christ, and members in particular (individually)", 1 Corn 12: 27, and "for
His body’s sake, which is the Church", Col 1:24, and since, He "hath put all things under his feet,
and gave Him to be Head over all things to the Church, which is His body, the fullness of Him
who fullness all in all", Eph 1:22-23.
2. The Christian Church can meet in many places and is not restricted to any building or Physical
place, as it is written; "For where two or three are gathered together in My name, I am there in the
midst of them", Mathew 18:20.
3. The Christian Church can be a building where the body meets or it can be any house (of a believer
in Jesus the Christ) in order to function as a Church of Acts, since Paul spoke, "and how I kept
back nothing that was profitable (helpful) unto you, but shewed (proclaimed) you and have taught
you publicly and from house to house", Acts 20:20 "and to our beloved Apphia, Archippus our
fellow soldier, and to the Church in your house", Philemon 1:2.
4. In the U.S. Supreme Court decision considering the case of Everson vs. Board of Education, 330
US 203.91, LEd 2nd 711, the Court held that: The "establishment of religion" of the First
Amendment means: Neither a state nor the Federal Government can set up a church. Neither can it
pass laws which aid one religion, aid all religions, or prefer one religion over another. Neither can
it force nor influence a person to go to or to remain away from a church against his will or force
him to profess a belief or disbelief in any religion. No person can be punished for entertaining or
professing religious beliefs or disbeliefs, for church attendance or nonattendance.
http://www.eddiekahn.com/we_are_the_church.htm (1 of 14) [1/13/2004 8:14:38 PM]

We are the Church
5. In Title 26 of the United States Code and Income Tax Regulations - June 26, 1977 Edition -
published by Commerce Clearing House, it states in Section 1.511-2 (ii) volume 1, page 33,
471-42; and in The Law of Tax Exempt Organizations by Bruce Hopkins - published by Lerner
Law Book Co., 1977 (page 107), it states the following: The term "church" includes a religious
order to a religious organization if such order or organization (a) is an integral part of a church,
and (b) is engaged in carrying out the functions of a church, whether as a civil law corporation or
otherwise. (Note "or otherwise" you do NOT have to incorporate and thus become a creature of the
State.) However, the option does remain, for the Church to incorporate.
6. There are both advantages and disadvantages to both sides of this question. One item of interest is
the position taken by the State on the rights of incorporated en-titles. The Official internal Revenue
Service Audit Guide in Section 242.31 , addressing corporation books and records states: The
privilege against self-incrimination under the Fifth Amendment does not apply to corporations.
The theory for this is that the State, having created the corporation has reserved the power to
inquire into its activities. If we incorporate, we give up the RIGHT and become controlled, at least
to a degree, by the State. However, if we remain unincorporated, we retain all of our in-alienable
rights.
7. In summary, under the above regulation (1 .51 1-2 (ii), a "church" is an organization, the "duties"
of which include the ministration of sacerdotal (i.e. priestly) functions and the conduct of religious
worship. The existence of the elements depends on the "tenets and practices of a particular
religious body". A church may also include a religious order or other organization, which is an
"integral part" of a church and is engaged in carrying out the functions of a church.
8. In a California US District Court decision, in consideration of the The Universal Life Church,
Inc. vs. United States, 372 F. Supp. 770, 776 (E.D. Cal 1974) the court held that: "Neither this
Court, nor any branch of this Government, will consider the merits of fallacies of a religion, nor
will the Court compare the beliefs, dogmas, and practices of a newly organized religion with those
of an older, more established religion, nor will the Court praise or condemn a religion, however
excellent or fanatical or preposterous it may seem. Were the Court to do so, it would impinge upon
the guarantees of the First Amendment." See also: "Law of Tax and Exempt Organizations" by
Bruce Hopkins -published by Lerner Book Co. 1977, page 110, in your local law library.
9. From the above, we can at least say this: "Under the Constitution of the United States, our
governmental officials have an obligation to protect freedom of religion, that is, state defined
religion; See: Abington School District VS, Schempp 374 U.S. 203 1963.
10. From these decisions we may conclude that any claim to church status cannot be subjected to
evaluative criteria or government standards, as such action would tend to prescribe the form and
content of religious beliefs and practices. Also, whatever rights, privileges and exemptions or
immunities are granted to ANY church, and/or religion, are also and must, on the same basis and
to the same extent, be granted to ALL Churches and/or religions.
RELIGIOUS FREEDOM A NATURAL RIGHT -
11. The first amendment of the United States Constitution reads as follows: "Congress shall make NO
LAW respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging
the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to
petition the government for a redress of grievance."

We are the Church
12. We have a natural, in-alienable right to freedom of religion. No law FOR, AGAINST or
OTHERWISE can ever be made with regard to the Church, as it exists under the Supreme Law
of the Land, within a LEGAL NULL. There is NO LAW AT ALL respecting an establishment
of religion or the free exercise thereof.
13. The RIGHTS spoken of here, in the first Article and the following nine Articles (i.e. the Bill of
Rights), are personal rights, fought and paid for, by the sacrifice of human life of our ancestors.
These laws-rights, as well as the entire Constitution of the united States of America, are in fact, the
Supreme Law of the Land. The Supreme Court of the United States has addressed itself to this
fact, and holds the following opinion: "Any law opposed to the Constitution of the United States is
as if it were NO LAW AT ALL!"
14. We hold this doctrine to be so important, that we have reprinted the fullness of the text from 16
Am. Jr. 2nd, page 177, which states the following: "The general rule is…that an unconstitutional
statute, though having the form and name of law, is in reality NO LAW, but is wholly void,
and ineffective for any purpose, since unconstitutionally dates from the time of its enactment
and not merely from the date of the decision so branding it an unconstitutional law, in legal
contemplation, is as inoperative as if it had never been passed. Since an unconstitutional law is
void, the general principles follow that it imposes no duties, confers no rights, creates no office,
bestows no power or authority on anyone, affords no protection, and justifies no acts performed
under it. A contract which rests on an unconstitutional statute creates no obligation to be impaired
by subsequent legislation. A void act cannot be legally inconsistent with a valid one. And an
unconstitutional law cannot operate to supersede any existing valid law. Indeed, insofar as a statute
runs counter to the fundamental law of the land, it is superseded thereby. Since an unconstitutional
statute cannot repeal or in any way affect an existing one, if a repealing statute is unconstitutional,
the statute it attempts to repeal, remains in full force and effect. The general principles stated
above apply to the constitutions as well as the laws of the several states insofar as they are
repugnant to the Constitution and the Laws of the United States. Moreover, a constitution will
nullify is as effectually as if it had, in express terms, been enacted in conflict therein".
15. Summary: From this, it is established by the Supreme Law of the Land, that NO LAW for, because
of, against, or otherwise is possible regarding religion. NO LAW IS NOT LAW AT ALL! The
church exists in a legal null, under the Supreme Law of the Land, the Constitution of the united
States of America.
EXEMPT ORGANIZATIONS
16. The Question: Is the Church an organization which is listed as tax exempt in Title 26 of the United
States Code (26 USC)? Note: 26 USC, (i.e. the code), is the LAW which the Federal Legislature
has passed - so it is primary. The regulations, (the code), expound what the Internal Revenue
Service has held concerning the Code taking into consideration court cases, rulings, etc.
17. Internal Revenue Code, Section 501 (c) (3) - List of exempt organizations, foundations and
establishment organization, etc.; organized and operated exclusively for religious purposes (the
church). Restrictions - No part of the net earnings of which insures to the benefit of any private
shareholder or individual, no substantial part of the activities of which is carrying on propaganda,
or otherwise attempting to influence legislation, and which does not participate in, or intervene in
(including the publishing or distributing of statements), any political campaign on behalf of any
candidate for public office, (page 4379).

We are the Church
18. Regulation I .501 (a) - I - Exemption from taxation Section 501 (a) provides an exemption from
income taxes for organizations which are described in Section 501 (c) (volume I , page 33, 431).
19. We see from the above information, that the church exists as an exempt organization under the
laws of the United States of America; that is, the Church; and not the person or individuals who
establish it.
RULES WITH RESPECT TO 501 (c) (3) ORGANIZATIONS
20. Under the NO LAW concept of the First Article of the Constitution of the united States of
America, is there any requirement, by law, for the church to make application for recognition of
Exempt Status?
21. Code 508 (a) - New organizations must notify the secretary that they are applying for recognition
of 501 (c) (3) status EXCEPT as provided in Subsection (c), (page 4395).
22. Code 508 (c) (1) (a) - Exceptions - mandatory exceptions - subsection (a), shall not apply to -
(A) Churches, their integrated auxiliaries, and conventions or associations of churches.
RETURNS BY EXEMPT ORGANIZATIONS

23. So far, we have established under the NO LAW concept of the First Article that: The Church is
exempt by right and does not have to petition any government agency for recognition of exempt
status. In fact, as stated in the above paragraph, the law (Section 1, Code 508 - I (a) (4), the church
is exempt whether it files notice or not.
24. Let us say we have established a church and operated said church for one year. The question
comes to mind: When every organization and private person is required to file an annual tax return
- does the church also have to file?
25. Section 6033 (a) (2) (A) Mandatory Exceptions - Paragraph (1) shall not apply to - (i)
churches.
26. Section 6033 (a) (2) (A) (i) provides for mandatory exceptions to filing requirements for
religious organizations and states that filing requirements shall not apply to "churches",
their integrated auxiliaries, and conventions or associations of churches.
27. Section 6033 (a) (2) (iii) exempts as well "the exclusive religious activities of any religious
order.
28. Explanation: Under Section 6033, your church or religious order has complete immunity to
disclosure. It is not necessary for you to maintain records of any kind except for your own
purpose and reasons.
29. Can you believe it? The congress remained true to the Supreme Law of the Land, again. The First
Article says: "Congress shall make no law respecting an establishment of religion," . . . and they
have NO LAW whatsoever.
DISSOLUTION or TERMINATION
30. People are no more than the sum total of what they think, say and do. Let us say, because of who
we are and where we are emotionally, spiritually, academically, financially, and personally, we can
no longer live with or otherwise support our involvement in the Church and/or the ministry. Is
there any requirement for the person or persons who establish, and operate a church to notify ANY

We are the Church
government agency of a dissolution, termination or substantial contraction of their church?

31. Code 6043 (b) (1) - No return shall be required under this subsection from churches, their
integrated auxiliaries, conventions or associations of churches.
32. Regulation I , Section 6043 - 3 - Return regarding liquidation, dissolution, termination or
substantial contraction or organizations exempt from taxation under 501 (a). (Volume 3, page 40,
325)
33. Regulation I , Section 6043 - 3 (b) - Exceptions. The following organizations are not required to
file the return described in paragraph (a) of this section.
34. Regulation 1 , Section 6043 - 3 (b) (I) - Churches, their integrated auxiliaries, or conventions or
associations of churches.
35. In terminating the Church existence, there is a form published just for that action. The number of
the form is: Form 966 - E and it addresses 26 USC 6043 (b) of the Code and your responsibility
thereunder. The title of this form is: Liquidation, dissolution, termination, or substantial
contraction of organizations exempt or formerly exempt under section 501 (a). The Church is in
501 (c) (3), and every organization in (c) is also in (a). You will find in the instructions at the
bottom of the page, that the Church, the integrated auxiliaries and/or conventions or associations
of churches are exempted from filing this form.
CONCLUSION
36. This completes our initial consideration for the establishment, operation and termination of a
church. We believe in fact, a Church established using the above information and based on the
information provided, with the establishment of a church, the Church can do three (3) things: (1)
Originate; (2) Operate; and (3) Terminate (termination is non-scriptural, however is necessary
for governmental peace); without any responsibility to any agency, civil government or
otherwise; to gain their approval, sanction, or any other blessings, with regard to recognition of
exempt status (which is your inherent right).
37. Since a Church is mandatorily exempted from filing for recognition of exempt status and the
Church is mandatorily exempted from filing any return with any government agency, you can
terminate the Church without telling any government agency anything. The Church, in fact, exists
within a legal null. There is NO LAW. AMEN.
SECTION II
COURT DECISIONS
38. "Religion is not confined to a sect or a ritual. The symbols of a religion to one are anathema to
another. What one may regard as charity another may scorn as foolish waste. And even education
is today not free from divergence of view as to its validity. Unity School of Christianity, 4 B.T.A.
61, 70 (1926).
39. Judge Brattin for the Eastern District of California, in Universal Life Church, Inc. vs. United
States, 372 F. Supp. 770, 776 (E.D. Cal 1974), states: Neither this court nor any branch of this

We are the Church
government will consider the merits or fallacies of a religion. Nor will the court compare the
beliefs, dogmas, and practices of a newly organized religion with those of an older, more
established religion. Nor will the court praise or condemn a religion, however excellent or fanatical
or preposterous it may seem. Were the court to do so, it would impinge upon the guarantee of the
First Amendment."
40. Further, in United States vs. Seeger, 380 U.S. 163 (Supreme Court 1965), "we find the court
addressing the concept of God and religion and holding that the test of belief in God (they put in
Supreme Being) is whether a given belief that is sincere and meaningful occupies a place in the
life of its possessor, parallel to that filled by the orthodox belief in God of one who is clearly
religious". Assuming the holding of the court is valid in the above cases, it then necessarily
follows that any lawful means of formally observing the tenets of faith of any religious body is
worship within the meaning of the tax exemption provisions.
41. In the case of Fellowship of Humanity vs. Alameda County,(’57), 153 Cal A. 2nd 673, 315 p.
2nd 394, it is held that: "The terms "religion" or "religious" in tax exemption laws should not
include any reference to whether the beliefs involved are theistic or non theistic. Religion simply
includes: (1) a belief, not necessarily referring to supernatural powers; (2) a cult, involving a
gregarious association openly expressing the belief; (3) a system of moral practice directly
resulting from an adherence to the belief; and (4) an organization within the cult designed to
observe the tenets of belief. The content of the belief is of no moment."
COURT DECISIONS REGARDING ORDINATION

42. In Kibbe vs. Antram, 4 Conn. 134, 139, we see that to "ordain" is to vest with authority -
ministerial function - or sacerdotal power. Also from the same case it is established that, "the
ordination" of a clergyman remains even after his separation from a church of which he once had
charge, and his spiritual authority continues, although he is not settled over a particular
congregation".
43. From Buttecali vs. U.S.C.C.A., Tex. 130F. 2nd 172, 174, the following rationale is stated:
"Generally a duly ‘ordained minister’ is one who has followed a prescribed course of study of
religious principles, has been consecrated to the service of living and teaching that religion through
an ordination ceremony under the auspices of an established church, has been commissioned by
that church as its minister in the service of GOD and generally is subject of control or discipline by
a council of the church".
44. In Ruggles vs. Kimball, 12 Mass. 337.338, it states: "The minister may be installed over some
particular society, either incorporated or unincorporated."
THE MAKING OF AN ORDAINED CHRISTIAN

MINISTER
45. First of all, we need a minister, Duly Ordained, or who may be installed and/or commissioned by
the Church. This individual is usually the product of the following evolution:
A. Has accepted Jesus the Christ and his or her Lord and Savior.
B. Professes personally that Jesus the Christ came in the flesh and was the Son or God, I John 4:1.

We are the Church
C. Has or she has been anointed by the Father, who art I Heaven as an apostle, prophet, evangelist,
pastor or teacher and desires to fulfill his or her calling.
D. The Church may now ordain and give whatever written or oral confirmation it so desires.
SECTION Ill
CHRISTIAN CHURCH LEADERSHIP
45. The RULERS of each Christian church is: its governing Board of Elders. This board is limited as
to what it can do by law and must forever and always struggle to remain above and beyond
reproach. If they don’t; they will endure a world of trouble and personal pain from bureaucratic
agencies, established and operated by persons who have nothing but time to create and disseminate
trouble, problems and pain. This Board of Elders is further limited by the organizations creative
documents (i.e., see Church charter and by-laws).
46. We have already seen that case law supports any decision a Church makes, regarding ordination
and the final decision as to form and function should be left up to the Elders of each church.
SECTION IV
WHAT IS RELIGION?
48. It would appear from the above, that what is "religious" and/or "religion" depends upon a person’s
personal belief and not upon any organized or official stand. One’s concept of the a Supreme
Being" cannot be subjected to evaluative criteria; as long as it is sincere, meaningful, and occupies
a place in his life equal to that concept of God which a person of an orthodox persuasion might
hold. Now, before you perform brain surgery (and let’s face it, that is what you, the minister, witch
doctor, and/or politician, do - operate on the minds of men), it would be well for you to: "Study, to
show yourself approved unto God, a workman that needeth not be ashamed rightly dividing the
word or truth." (II Timothy 2:15).
49. In Reinhart, 9 Ohio S & C. P. Dec. 441 ,442, "The moment an attempt is made to limit or restrict
ordination to some special form of ceremony, we begin to discriminate between the diverse modes
and forms of ordination practiced by the various religious societies. The laws of Ohio make no
discrimination in any respect between Catholic, Gentile, Jewish, or any other religious societies or
denominations; much less do they attempt to prescribe any mode or form of ministerial ordination,
which is defined in the Standard Dictionary as "the act or rite of admitting and setting apart to the
Christian ministry or the holy orders, especially in the Roman Catholic, Anglican, and Greek
church’s consecration to the ministry by the laying on of hands of a bishop or bishop; in other
churches, consecration by a presbytery synod, or council of ministers." It has been the practice of
this court, therefore, to grant the license to authorize the solemnization of marriages to duly
commissioned officers in the Salvation Army who were engaged under such priests, Jewish rabbis,
teachers and ministers of spiritualistic philosophy, and in fact all persons who can prove to the

We are the Church
satisfaction of the court that they have been duly appointed or recognized in the manner required
by the regulations of their respective denomination, and are devoting themselves generally to the
work of officiating and ministering in the religious interest and affairs of such societies or bodies";
thru ordination.
50. See also the Book of Concord, which contains the Confessions of the Evangelical Lutheran
Church, and dates back to 1523 A.D., translated by Theodore G. Tappert, For-tress Press, 1959,
under the General Index: ORDINATION - "as a sacrament", on page 212.11; "ordination by
heretics are valid", on page 314.3; "the right of the church to call, elect, and ordain ministers", on
page 331 .67; "the bishops’ right to ordain", on page 330.62; "the popes’ right to ordain", on page
320.5; etc.
BOILING IT DOWN
51. From the above it is clear that: an ordination is only a recognition by some religious society, (the
congregation), publicly proclaiming that said individual is vested with spiritual authority; a right
which that individual had prior to public proclamation. If, after once having been ordained, a
minister leaves his church and congregation, his ministerial authority does NOT cease even though
he is no longer physically tied to that initial religious (church) body. Generally, most ministers
have studied and are under the authority of some governing body. Whether the church is
incorporated or unincorporated, the state has no authority whatsoever in the internal affairs of the
church. And finally, the form of the ordination and the ceremony thereof means very little when
we take into consideration all the other religious organizations in the United States - the rites of
one religious body are considered just as credible as any other religious body.
SECTION V
THE LAW
52. The law requires every taxpayer to maintain records that will enable him to complete an accurate
and complete return (see Internal Revenue Service publications 334, 552 and 583). However, the
church is a tax exempt organization by right and is not considered to be a taxpayer, even though it
operates as a separate legal entity which can buy, sell, rent, own real property, do any and all kinds
of business, as well as sue and be sued just like a natural born person.
RELATEDCHURCHBUSINESS
53. The church operates generally on an exempt basis. This is, exempt from property tax, (some states
have a qualifying procedure, so you must check with your local county tax assessor), exempt from
state sales tax and state income tax in most cases. (You should check with your individual state
taxing authority, as this also varies from state to state). Exempt from Federal Withholding, FICA
and FUTA taxes for its ministers (see Internal Revenue Service publication 15 circular E), exempt
from Retail Federal Excise Tax and finally, exempt from Federal Income Tax on its exempt
purposes (see Internal Revenue Service publications 598 and 1018).

We are the Church
SPECIFIC EXCEPTIONS TO UNRELATED

CHURCH BUSINESS
54. Department of the Treasury, Internal Revenue Service Publication 1018 (1-77): Certain Income -
producing activities are exempted from tax even though they may be from an ongoing, unrelated
business. These exceptions are: (1 ) Activities in which substantially all the work is performed for
the church by unpaid volunteers. (2) Activities carried on by the church primarily for the
convenience of its members, students or employees. (3) Selling merchandise, substantially all of
which has been received by the church as gifts or contributions. (4) Generally, dividends, interest,
annuities, royalties, and capital gains and losses. (5) Generally, rents from real property. Examples
of Exceptions: A church holds a monthly bingo game. If substantially all the work is done by
unpaid volunteers, the income is not taxed. Similarly, if a church regularly holds fund-raising
dinners, open to the public, the income is not taxed if substantially all the work is done by unpaid
volunteers.
55. The specific exceptions of dividends, interest, annuities, royalties, and capital gains and losses, are
aimed at excluding passive income from tax and taxing income from active businesses. For
example, if a church owns stock in a taxable business, dividends from the business are not subject
to the tax.
56. Under certain circumstances, however, property acquired by a church for its use for exempt
purposes in the future is not treated as "dept-financed. "An example of this is a church purchasing
land by mortgage for a new church building and renting the land while collection a building fund.
As long as the exempt use of the property begins within 15 years, any rental income from the real
property falls within the exemption and is not taxable.
RETURNS BY EXEMPT CHURCHES

57. 26 USC, Section 6033 (a) (2) (A) (i) ~ Generally, the "church" is mandatorily excepted from filing
an annual Federal Tax Return (that is Form 990-A), which all other 501 (c) (3) organizations are
required to file.
58. This does not apply to the unrelated trade or business of a church however. This is brought to light
in the regulations as Regulation I , Section 6033 - 1 (I) (1 ) which states: "Certain organizations
(i.e. churches) otherwise exempt under section 501 (a) and described in 501 (c) (3) are required to
file a Federal Tax Return on Form 990T, on unrelated trade and business."
WHERE ARE WE?

59. From the above we may conclude the following: (1 ) churches may or may not keep permanent
books and records. (2) These may include: records, and inventories sufficient to show specifically
the items of: (A) Gross Income, or, (B) Receipt (contributions, gifts, etc.) (C) Disbursements
(expenses). If said church is involved in unrelated trade and business, it must keep permanent
books and records relating specifically to the unrelated trade and business.

We are the Church
SECTION VI
THE INTERNAL REVENUE CODE
60. SECTION 6033 (a) exempts religious organizations from the need for filing returns of any kind.
Section 6033 (a) (2) (A) (i) provides for mandatory exceptions to filing requirements for religious
organizations and states: that filing requirements shall not apply to churches, their integrated
auxiliaries, and conventions or associations of churches. Section 6033 (a) (2) (A) (iii) exempts
as well the exclusively religious activities of any religious order.
61. EXPLANATION: Under Section 6033, your church or religious order has complete immunity to
disclosure. It is not necessary for the church to maintain records of any kind except for your
own purposes and reasons.
62. SECTION 107, in the case of a minister of the gospel or other spiritual material, gross income
does not include: I) the rental value of a home furnished to him as part of his compensation; or 2)
the rental allowance paid to him as part of his compensation to the extent used by the minister to
rent or provide a home.
63. EXPLANATION: In order to qualify for the exclusion, the home or rental allowance must be
provided as remuneration for services which are ordinarily the duties, of a minister of the gospel or
other spiritual material. The rental allowance may be used for the rent of a home, the purchase of a
home, and for expenses directly related to providing a home. Expenses for food and servants are
not considered for this purpose to be directly related to providing a home.
64. SECTION 3401 (a) (9) provides that the definition of the term "wages for tax withholding
purposes does not include remuneration paid "for services performed by a duly ordained,
commissioned or licensed minister of a church in the exercise of his ministry or by a member of a
religious order in the exercise of duties required by such order; etc."
65. EXPLANATION: Internal Revenue Service regulations provide guidelines for Internal Revenue
Service employees to help them understand the Internal Revenue Code. Internal Revenue Service
Regulation 31 .3401 (a) (9) - I states: "Service performed by a member of a religious order in the
exercise of duties required by such order includes all duties required of the member by the order.
The nature or extent of such service is IMMATERIAL so long as it is a service that the minister
is directed or required to perform by ecclesiastical superiors.
66. FOR EXAMPLE: If Father McLaughlin is directed by his order to work for the federal
government in the Office of the President, then his employer (in this case the federal government)
is not under any compulsion whatsoever to withhold either federal income taxes or social security
taxes. A member of a religious order may be required by his order to be an Advisor to the
President; a pilot, or a bank loan officer. The regulation states that the nature or extent of such
service Is IMMATERIAL.
67. SECTION 1 70 provides that up to 50% of an individual’s Adjusted Gross Income (AGI) is
deductible for contributions to religious and charitable organizations. The "General Rule"
allows tax deductible status for contributions to "a church or a convention or association of
churches, etc.".
68. EXPLANATION: A person with an Adjusted Gross Income of $30,000 may contribute up to

We are the Church
$15,000 and claim such a deduction. Other subsections of Section 170 provide for donations of
income-producing assets and also for the Unlimited Charitable Deduction sometimes known as the
"Nun’s Rule".
69. SECTION 1402 (c) (4) provides that "the performance of service by a duly ordained,
commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a
religious order in the exercise of duties required by such order", is not considered a "trade or
business" when used with reference to self-employment or net earnings from
self-employment.
70. EXPLAI’AT1ON: An auto mechanic, gardener, or medical doctor may be self-employed, if the
religious order of which one is a member directs one to undertake duties in one’s field of
training or experience, as a self-employed person, then any income received not taxable as
income from a "trade or business".
71. IRS PUBLICATION ‘15, 1978, Circular E, EMPLOYER’S TAX GUIDE, is distributed free of
charge by the Internal Revenue Service. On page 11, you will find that "Members of religious
orders who have taken a vow of poverty "performing duties required by the order" are exempt
from "in-come tax withholding" and from "social security".
72. SECTION 1402 (e) exempts "a member of a religious order who has taken a vow of poverty as a
member of such order" from taxes under the Federal Insurance Contributions (sic) Act, (i.e. FICA
or social security). There is no requirement that you file for this exemption from social security
tax. The exemption is automatic when you are a member of a religious order, who has taken a vow
of poverty as a member of your order.
73. Any person, including any government official, within the jurisdiction of the Constitution of the
united States of America, who acts to prefer one religion to any other in an official capacity, is
acting in the violation of the Constitution of the united States of America. At the very least, a
government employee may be dismissed for violating his oath of office to uphold the Constitution
of the united States of America and he or she may be subject to civil and criminal penalties, with
fines up to $10,000 or imprisonment up to five years, or both.
SECTION VII
QUESTIONS AND ANSWERS
74. Question: CAN THE CHURCH PAY FOR HEALTH INSURANCE IF I AM THE MINISTER?
Answer: YES. If the Board of Elders votes that the minister and his family should be covered with
such insurance. You may vote to have the Church reimburse the members for all the medical,
hospital, dental, and other health care including medications, provided such coverage is for all
family members and intended for the Church by taking care of the health of the Minister.
75. Question: CAN THE CHURCH PAY FOR LIFE INSURANCE IF I AM THE MINISTER?
Answer: YES. If the Church is made the beneficiary in the policy and the coverage is voted on by
the Board of Elders.

We are the Church
76. Question: CAN I DONATE TO THE CHURCH, IF I AM THE MINISTER AND A MEMBER
OF THE BOARD OF ELDERS?
Answer: YES. The law says you may donate "up to 50% of your taxable income to a recognized
Church of your choice". "You have a right to a religion and the right to fund the religious entity of
your choice".
77. Question: CAN THE CHURCH PAY THE UTILITIES IF MY HOME IS THE PARAONAGE?
Answer: Yes. The Board of Elders of the Church may vote to have the Church pay a reasonable
part of the utilities or all.
78. Question: DO I GET ANY KIND OF PERSONAL EXEMPTION IF MY HOME IS USED AS
THE PARSONAGE AND FOR CHURCH MEETINGS?
Answer: YES. Your are entitled to the value of that part of the house used by the Church, the same
as if you rented that portion of the house.
79. Question: HOW OFTEN DOES A CHURCH HAVE TO MEET?
Answer: Generally, Churches meet on a weekly basis. However, there is no rule in the law, so it
may be assumed that the meetings are so spaced as to be reasonable for the religious purpose of the
Church. We recommend weekly services. A Church meeting is when two (2) or more people
congregate for a religious purpose.
80. Question: HOW OFTEN DOES THE BOARD OF ELDERS MEET?
Answer: Usually once or twice a year. Under certain circumstances, your Board of Elders may
vote to meet several times throughout the year.
81. Question: HOW MANY MEMBERS OF THE BOARD OF ELDERS MUST BE PRESENT TO
HAVE A LEGAL MEETING?
Answer: At least two (2), out of three (3), (a quorum).
82. Question: IS IT NECESSARY TO KEEP MINUTES OF BOARD OF ELDERS MEET1NGS?
Answer: Only if you desire. If so Everything done by a Church would be done by RESOLUTION,
voted on and passed by the Board of Elders. You need record only those things which did receive a
majority vote in the Board of Elders meeting.
83. Question: WHO DECIDES WHICH MEMBERS OF THE BOARD OF ELDERS MAY SIGN
CHECKS FOR THE CHURCH?
Answer: The Board of Elders makes this decision and it is very important to record the vote in the
minutes.
84. Question: CAN I TAKE PARSONAGE OFF THE TAX ROLLS IF THE CHURCH OWNS THE
PROPERTY?
Answer: No property ever comes off the tax rolls. Property may be exempt from property taxes if
it can be proved that the property is used EXCLUSIVELY for religious purposes. Check this with
your local tax authority for requirements.
85. Question: WHAT OTHER FORMS OF INCOME MAY THE CHURCH RECEIVE TAX FREE?

We are the Church
Answer: The Church may receive any form of donations. The Church may receive any form of
"passive investment" such as: Real Estate, Stocks, Bonds, Mortgages or Bank Interest. The Church
can sponsor any kind of a fund raising event.
86. Question: DOES A CHURCH HAVE TO FILE A TAX RETURN TO THE STATE OR
FEDERAL GOVERNMENT?
Answer: NO. An un-incorporated, non 501(c)(3) Church is a mandatory exemption from this
requirement. See 26 USC § 508(c)
87. Question: WHAT HAPPENS TO THE CHURCH ASSETS WHEN THE PASTOR DIES?
Answer: Your church is operated by the Board of Elders. Upon your death, as
pastor/founder/minister, the remaining Board of Elder members simply appoints a new minister
and the Church goes on indefinitely. If all the members of the Church should die, including the
entire Board of Elders, and all Church assets were completely abandoned, the assets would. All
Church assets may be donated to a designated Charity or Church as previously voted upon by the
Elders. It must make a lateral move.
88. Question: DO I HAVE TO PUT ALL OF MY PROPERTY INTO THE NAME OF THE
CHURCH?
Answer: You can put ALL or none or as little as you want to in the Church name. If you take the
vow of poverty, you should put it in the name of your spouse or donate your worldly possessions
to anyone of your choice.
89. Question: HOW DO I PROVE MY CONTRIBUTIONS TO THE CHURCH?
Answer: You should write check from your personal checking account for the amount each month.
Then at the end of each tax year, photocopy both the front and the back of the checks and receipts.
Attach the photocopies to your copy of Form 1040.
90. Question: HOW SHOULD ANY CHECK BE MADE OUT?
Answer: Pay to the order of: the Name of the Church.
91. Question: HOW SHOULD THE CHECKS BE SIGNED ON THE BACK (when they are
deposited)?
Answer: "The Name of the Church, For Deposit Only."
92. Question: SHOULD I ALSO SIGN MY NAME ON THE BACK OF THE CHECKS?
Answer: No. It is not necessary.
93. Question: HOW MANY PEOPLE CAN BE MEMBERS OF THE CHURCH AND HOW FEW?
Answer: You need a minimum of two (2) Elders (members). (You, your spouse or another).
You can have as many members in the Church as are interested in being members. If there
are particular concerns as to a potential legal attack you may want to consider that Elders be
established from three (3) or more households as scripture tells us that a cord of three is not
quickly broken.

We are the Church
Religious Freedom is
Your RIGHT!
It is up to YOU to protect
it.

Eddie Kahn Tax Seminar
Do you FEAR the IRS? If you fear a Public Servant, then he
is not your SERVANT… he is your MASTER!
October 11th - Denver, Colorado
Holiday Inn Northglenn - (303) 452-
452-4100
I-25 & 120th Avenue
1:00pm - 5:00pm (Registration begins at 12:00 noon)
Pre-Registration: $35 a person ($10 additional for spouse)
At the Door: $45 a person ($20 additional for spouse)
***IRS AGENTS ADMITTED FREE OF CHARGE***
ATTEND THIS SEMINAR AND LEARN…

To Pre-Register: • Which taxes you must pay and which ones are voluntary.
• The IRS (and some other “agencies”) are not Agencies of the United States Government
Send a check or money
order made payable to and how to prove it.
“Carol Wagner” • Proven techniques for successfully dealing with the IRS.
postmarked by • How to be on the Offense, not the Defense.
October 1st to: • How to verify a bureaucrat has the authority over you that he claims to have… prior to
Carol Wagner submitting to his demands.
Attn: EK Tax Seminar • How to put all bureaucrats (and politicians) back in their proper role as Public Servants.
c/o 4820 Crest Road • The difference between a Right and a Privilege… and why not knowing the difference
Fort Collins, CO literally puts you in bondage.
80526 • About real life examples of defeating bureaucrats who exceeded their authority.
• About Status… not knowing your proper “Status” is detrimental to your Liberty.
Your tickets will be
held at the door.
Sorry, NO Refunds.
FREE CD for all who attend the seminar that contains over
Directions: 400 documents that you can use in dealing with bureaucrats
Via E-470: Exit the Denver Interna-
tional Airport on to Pena Blvd. and
go West to E-470 North. Travel on
E-470 North to I- 25 South, continu-
ing until you reach the 120th Knowledge is power. If you’re ready to discover the truth about income taxes and how to TAKE
Avenue exit. Exit on to 120th
Avenue and turn left at the 120th/I-
CONTROL of your relationship with the IRS - attend this seminar! Copy and distribute this
25 light. Travel East on 120th for flyer! Tell your friends about this event! Save $10 by pre-registering!
one block to the Holiday Inn en-
trance.
Via Tower Road: Exit the Denver
International Airport on to Pena
Presenting… Eddie Kahn
Blvd. and travel towards Tower Eddie Kahn, internationally known as an author and lecturer, has researched tax systems for
Road. Take Tower Road North to
104th Avenue, turn left on 104th over 20 years; not only in America, but in Australia, New Zealand, Canada and England as
Avenue and continue West to I- 25. well. A much sought after speaker, Mr. Kahn travels extensively to conduct seminars based
Merge onto I-25 North and travel to
the 120th Avenue exit. Exit on to on his “how to” book: “No Enforcements Statutes/IRS Regulations Applicable for Individual
120th Avenue and take your first Income Tax.” His seminars and educational materials have shown thousands how to under-
immediate right into the Holiday
Inn parking lot.
stand our tax system and how to take a proactive and successful stance with the IRS.
Mr. Kahn is the Presiding Overseer of Guiding Light of God Ministries, and Successors, a Cor-
For more info: poration Sole. His ministry involves, among other things, helping people unfairly treated by
(970) 226-4246 the government. He and his staff work to assist these people.
carolwagner@attbi.com **Note: Eddie Kahn’s educational materials will be available at this event. A donation
will be requested.
Visit EddieKahn.com/seminar.htm for a seminar flyer to e-mail and fax to friends!

A Most Important Educational Seminar To Put Everyone
On The Same Page And In Control Of Our
REMEDIES IN COMMERCE
PPR
REESSE
ENNT
TSS
Barton Buhtz µ Winsto n Shro ut µ Eddie Kahn

It’s all about CONTRACTS! The whole world operates in COMMERCE!
L
LEEA
ARRN
NAAB
BOOU
UTT:
UCC 1 & the STRAWMAN ² Operating in the Bankruptcy

All Summons ² Tickets ² Invoices ² Bills ² Judgments are Offers per the UCC
How to Accept For Value & Return for Settlement and Closure
Administrative Remedies, Duties & Procedures ² Get Agreement
Judgement In Estoppel ² Amended Complaints ² Arbitration
Judicial Review in YOUR Favor ² Bills of Exchange ² Bonds & Vouchers
Simple Social Security Trust Indenture ² Forms 1040 v. 1041
IRS Liens & Levies ² Latest Wins using BOE’s & Bonds
October 19 – 21, 2003

Imperial Palace - Las Vegas, Nevada
SUN DAY, Octo ber 19 th - noo n to 4p m Regis tratio n
4 to 5 :00 pm Ge t Acq uai nte d N o Hos t Bar H ospi tali ty S uite
5:30 – 6 :00 pm We lco me & An no unce me nts , Mai n Co nven tion Room
6:00 – 7 :30 pm Barto n Bu ht z, UCC 1 & t he STR AWMAN
7:45 – 9 :00 pm - Barto n B uh tz
MON DA Y, Oc tober 20 th - 7 :30 – 9:00 am Conti ne nta l Brea kfas t, Main Conve ntion Roo m
9:00a m – Wins ton Shro ut , A d minis trative Rem edies & Proced ures
10:30a m – Bre ak, 11:30a m S pecia l Deli B uffe t L unc h served
1:00 – 2 :30p m - Wi nsto n S hrou t
2:45 – 4 :00 pm - Wi nsto n S hrou t
TUESDA Y. Oc tober 21st - 7:30 - 9: 00a m Con tine nt al Bre akfa st , Mai n Conve ntio n Roo m
9:00a m – E d die Ka hn , IRS Lie ns , Levies & t he L ates t Wins
10:30a m – Break , 11: 30a m Sp ecial De li Bu ffe t Lu nc h serve d
1:00 – 2 :30p m - Ed die Ka h n
2:45 – 4 :00 pm - E ddie Kah n
Works hops ti mes to be a n nou nce d a t Se minar
USAHosts Reservation Request Page

1
of 2
FOR HOT EL R ESERV ATIONS AND SEMIN AR REGIST RATION FO R
REMEDIES IN COMMERCE, PLEASE CO NT ACT:
USA Hosts/Housing Services *
www.usahosts.com/events.php
scroll down and Click on REMEDIES I N COM MERCE event
or call USA Hosts Housing Services 8a-5p PST M-F
Tel: (702) 798-83 09
Toll-free: (877) 584- 6787
Fax: (702) 597-0264
Deadline for signup
October 15, 2003
Registration Fee is $175.00 per person if registration received before
September 19, 2003
Registration Fee will be $195.00 per person if received after
September 19, 2003
Registration Fee will be $250.00 per person at the door
Hotel accommodations are available on a first come first serve basis
Early bird Special rates before September 19th are $75.00 p/night
Plus 9% Clark County Room Tax and are based on
Single King or Double Occupancy
* Check Website or c all U SA Hosts fo r specia l discount airfa res

on Southwest Airlines
All the latest info on what is REALLY working!!

This is the Seminar everyone has been waiting for.
Plus, a Surprise Guest, too!
Early bird Special room rates are limited –
Reserve early. See you there!!!
USAHosts Reservation Request Page

2
of 2
Catalog of Federal Tax Forms, Form Letters, and Notices (publication 676)
Catalog of Federal Tax Forms, Form

Letters, and Notices (publication 676)
Publication 676 lists all of the Federal Tax Forms, Form Letters and Notices. This is an excerpt of
publication 676 (What is more interesting then what is in it is what is not). This is all of the
computer paragraph notices as well as regular notices listed in that publication. There are no
other notices listed any where else that we are aware of. What is missing? Try to find a Notice of
Deficiency!!
Why is this important? If the IRS does not send you a Notice of Deficiency, there can be no
enforced collection!
You can view the full publication from the Family Guardian web site.
icon below.
http://www.eddiekahn.com/catalog_of_federal_tax_forms.htm [1/13/2004 8:14:41 PM]

Dear ARL Members
Dear ARL Members,

I am writing to let you know that there are some changes that are taking place in
our office at this time. Because we have always been a Christian organization, we
are very happy and excited about these changes. We feel that God is guiding us in
this direction and we are simply following His lead.
As most of you know, American Rights Litigators (ARL) has never been run as a
business because it has never been a business. It was set up as a ministry to help
people that felt they were being harassed by the IRS or they felt incompetent to
respond to IRS demand letters. For seven years ARL members have had a lawyer
and a CPA that would take their Power of Attorney (POA) and correspond with
the IRS on their behalf to try and resolve any IRS problem. However, we have
always wanted an "official" religious vehicle to operate under.
As a result of that desire, Eddie has set up a Corporation Sole, which is a religious
office that will support the ministry. All the beneficial shares, as well as all of the
assets of ARL, have been gifted to the ministry, as well as those of Eddie Kahn
and Associates, LLC. Those two entities are currently being phased out.
The official name of the ministry is: OFFICE OF THE PRESIDING
OVERSEER OF THE GUIDING LIGHT OF GOD MINISTRIES, AND
SUCCESSORS, A CORPORATION SOLE. (A mouthful, isn’t it?) GLGM has
it’s own address and phone numbers, which are on the flyer. Eddie Ray: Kahn is
the Presiding Overseer of the Corporation Sole.
http://www.eddiekahn.com/dear_arl_members.htm (1 of 3) [1/13/2004 8:14:46 PM]

Dear ARL Members
All of the staff at ARL have agreed to work with GLGM. All current
memberships will be honored and the services will be essentially the same.
The changeover will take place on Friday, the 22nd of August. That day, there
will be a small number of workers at ARL to take care of emergencies. Everyone
else will be at the GLGM office getting prepared for the official opening date of
Monday, August 25th. (Please help us out by not calling the ARL office on
Friday unless it is something that just will not wait until Monday. However, if it
is an urgent matter, by all means call the office.)
Changes:
1) Because GLGM is a ministry, it will not charge for services

rendered. There will be a requested donation for services rendered as
well as an annual donation request. The funds requested will be the
same as what you are now paying. Reason: We have costs that are fixed
that must be provided for if we are to continue to help the people who
come to us. If the requested donations come in, we will be able to
provide those services.
2) All checks will be made out to Guiding Light of God Ministries or Eddie
Kahn, Overseer.
3) Another Service: GLGM will assist individuals who want to set up
their own ministries by providing them with the appropriate paperwork
and support. It will also assist Christian churches who have
incorporated under IRS Code 501(c)(3) to change that status to that of a
true church status with the appropriate paperwork and support.
Special Notice: In talking with your Power of Attorney (POA) and another
nationally known lawyer, both suggested that there are some letters that should
come from the member to establish good faith on your part. If the IRS continues
to contact you after those letters, that would be the time for the POA to step in
and respond. Based on those observations, that change will be instituted
immediately. Should you receive a letter from your POA, it will require you to
sign it and send it directly to the IRS, you will understand the reason behind it.

Dear ARL Members
Thank you,
ARL Staff
Please direct further inquiries to...

Please Direct Futher Inquires to....
Dear Patrons,
Please direct further inquiries to:
Office of the Presiding Overseer of the
Guiding Light of God

Ministries (GLGM)
and Successors, a Corporation Sole.
Mailing Address:
Post Office Box 1365
http://www.eddiekahn.com/please_direct_futher_inquires_to.htm (1 of 3) [1/13/2004 8:14:46 PM]

Mount Dora, FL 32756-1365

Physical Address for Mail Couriers ONLY
(i.e. FedEx, UPS, DHL, Airborne Express):
440 North Donnelly Street

Mount Dora, FL 32757
Phone Number: (352)

383-4320
Fax Number: (352) 383-9206

Coming Soon…
Web site:
EddieKahnOverseer.org
E-mail address: (staff member
name)@glgm.org

01-13-04 Eddie Kahn

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

01-13-04 Eddie Kahn

Încărcat de

Drepturi de autor:

Formate disponibile

Eddie Kahn Has Researched Tax Systems for Over 20 Years.

Search This Site

International Income Tax

http://www.eddiekahn.com/ (1 of 3) [1/13/2004 8:12:54 PM]

3 Former IRS Agents Expose...

6103 Unlawful Disclosure

Congressmen Speak Truth

Contact House and Senate

Eddie's Private Page

Federal Legislative Jurisdiction

Ghost of Valley Forge

http://www.eddiekahn.com/ (2 of 3) [1/13/2004 8:12:54 PM]

Republic Under Siege

What is the Church

What Happened to the 56 Men

http://www.eddiekahn.com/ (3 of 3) [1/13/2004 8:12:54 PM]

Welcome to Eddie Kahn's International Income

Original Intent of Income Tax Laws

http://www.eddiekahn.com/intl/index.htm (1 of 2) [1/13/2004 8:12:55 PM]

[ INTERNATIONAL TAX INFORMATION | AUSTRALIA | CANADA | NEW ZEALAND | EDDIE KAHN ]

http://www.eddiekahn.com/intl/index.htm (2 of 2) [1/13/2004 8:12:55 PM]

This page was last updated on Tuesday, January 06, 2004

Federal Legislative Jurisdiction in Florida - These

http://www.eddiekahn.com/what.htm (1 of 3) [1/13/2004 8:12:56 PM]

3 Former IRS Agents Expose Newest Gov't Scheme

CFR26 1.1-1 - Regulation identifying income tax on

http://www.eddiekahn.com/what.htm (3 of 3) [1/13/2004 8:12:56 PM]

Search Eddie Kahn's Site

Search Eddie's site for:

Start Search Clear

information and retrieval

information not retrieval

http://www.eddiekahn.com/search.htm (1 of 2) [1/13/2004 8:12:56 PM]

finds documents containing 'information' but not 'retrieval'

(information not retrieval) and WAIS

http://www.eddiekahn.com/search.htm (2 of 2) [1/13/2004 8:12:56 PM]

Contact Eddie Kahn

http://www.eddiekahn.com/contact.htm [1/13/2004 8:12:56 PM]

Current Seminar Schedule:

Date: Location: Contact Person:

October 11, 2003 Denver, Colorado Carol & Dennis Wagner

October 19 - 21, 2003 Las Vegas, Nevada* USA Hosts

*Mr. Kahn is one of several speakers at this conference

**Must have Adobe Reader to view. Get it HERE for FREE!

Conference Call – 8:00 PM Eastern Time – (610) 856-7990

http://www.eddiekahn.com/seminar.htm (1 of 2) [1/13/2004 8:12:56 PM]

February 11th March 11th April 8th May 6th

Topics for Possible Conference Call Discussions:

http://www.eddiekahn.com/seminar.htm (2 of 2) [1/13/2004 8:12:56 PM]

http://www.eddiekahn.com/links.htm (1 of 3) [1/13/2004 8:12:57 PM]

http://www.eddiekahn.com/links.htm (2 of 3) [1/13/2004 8:12:57 PM]

Contact the House: http://www.house.gov/house/MemberWWW.html

http://www.eddiekahn.com/links.htm (3 of 3) [1/13/2004 8:12:57 PM]

Eddie Kahn's Most Frequently Asked

NOTE: All answers are based on Eddie's research of the law.

Am I REQUIRED to file a form 1040?

http://www.eddiekahn.com/faq.htm (1 of 3) [1/13/2004 8:12:57 PM]

Does the IRS have the authority to garnish my wages?

Is the IRS an agency of the federal government?

Is EVERYONE required to file a 1040 form?

Does the IRS have lawful authority to lien/levy?

Who does the IRS collect money for?

http://www.eddiekahn.com/faq.htm (2 of 3) [1/13/2004 8:12:57 PM]