Rev. Proc. 75-23

Section 1. Purpose.

The purpose of this Revenue Procedure is to announce a further expansion and extension, on a test basis, of the Service's ruling procedure, as set forth in Rev. Proc. 74-19, 1974-2 C.B. 465. The change involves the processing of certain ruling requests. Under this further expansion and extension Service personnel will, within fifteen work days after receipt in the Branch, contact the taxpayer or, if designated, the taxpayer's authorized representative, to discuss informally the procedural and substantive issues involved in the ruling requests.

Sec. 2. Background.

Rev. Proc. 74-19, 1974-2 C.B. 465, as modified by Rev. Proc. 75-1, page 642, this Bulletin, announced a program under which two Branches, on a test basis, would contact taxpayers or their authorized representatives, within seven work days. This test program expired on March 31, 1975. See Section 6 which further extends the duration of Rev. Proc. 75-1.

Sec. 3. Scope.

This further expansion and extension will cover original ruling requests received after July 1, 1975, that meet the requirements set forth in Section 6 of Revenue Procedure 72-3. The following subject matters will be included:

(1) Individual Income Tax Branch

(a) Partnerships and Trusts

(b) Code section 103

(c) Real Estate Investment Trusts

(d) Stock Options

(e) Charitable Remainder Trusts

(f) Pooled Income Funds

(2) All matters within the jurisdiction of the Corporation Tax Branch except cases

(a) involving a request for change in accounting methods or periods,

(b) relating to the last-in first-out method of computing inventory,

(c) insurance issues involving contracts with reserves based on segregated asset accounts,

(d) insurance issues requiring actuarial computations.

(3) All matters within the jurisdiction of the Employment Tax and Administrative Provisions Branch, except ruling requests from individuals for employment status submitted on Forms SS-8.

(4) All other requests for ruling received by Technical.

Sec. 4. Procedures to be Followed Regarding Ruling Requests Received After July 1, 1975.

01. Within fifteen work days after an original ruling request has been received in the Branch, a representative of the Branch will contact the taxpayer to discuss the procedural and substantive issues involved in the ruling requests covered by this procedure. As to each issue coming within the jurisdiction of the Branch, the Branch representative will inform the taxpayer:

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

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

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

02. If something less than a fully favorable ruling is indicated with respect to a proposed transaction, the Branch representative will inform whether, in his opinion, such transaction might be modified so as to permit issuance of a favorable ruling. If, at the conclusion of the discussion, the Branch representative determines that a meeting in the National Office would better serve the purpose of developing or exchanging information, such a meeting will be offered and an early meeting date arranged. Any such meeting will not constitute the taxpayer's conference of right as described in section 7.02 of Rev. Proc. 72-3.

03. The Service will not be bound by the informal opinion expressed by the Branch representative or any other authorized Service representative under this procedure, and such opinion cannot be relied upon as a basis for granting retroactive relief under the provisions of section 7805(b) of the Internal Revenue Code.

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

Sec. 5. Effective Date.

This Revenue Procedure becomes effective July 1, 1975.

Sec. 6. Effect on Other Documents.

Rev. Proc. 74-19 as modified by Rev. Proc. 75-1 is further modified to provide that the duration of the test in the Reorganization Branch and Excise Tax Branch will be extended to June 30, 1975.

Sec. 7. Obsolescence.

This Revenue Procedure is obsolete as of July 1, 1976.

¹ Also released as TIR-1359, dated April 7, 1975.