The IRS has issued its annual guidance and user fee information for taxpayers requesting letter rulings and other similar advice. The IRS also updated its guidance on the technical advice process and on the areas in which it will not rule.

Rev. Proc. 2013-1, which supersedes Rev. Proc. 2012-1, explains how the IRS provides advice (ruling letters, closing agreements, determination letters and information letters) to taxpayers on issues under the jurisdiction of the associate chief counsels and the division counsel/associate chief counsel. It also provides user fees. Rev. Proc. 2013-1 makes few changes but does discontinue the expedited letter ruling process concerning whether a transaction constitutes a reorganization under Section 368 or a distribution under Section 355.

Changes were also made to the list of areas where letter rulings or determination letters will not be issued under Rev. Proc. 2013-3. This “no rule” list is amended with the addition of issues under Section 42 (low-income housing credit), Section 45 (renewable electricity production credit), Section 678 (grantor rules), sections 355 and 361 (corporate transactions), sections 2035-2038 (wealth transfers), Section 2501 (gift taxes), Section 2702 (valuations) and Section 4191 (the determination of whether a medical device qualifies for the excise tax retail exception).

The other annual revenue procedures released by the IRS include the following:

  • Rev. Proc. 2013-2 supersedes Rev. Proc. 2012-2 and explains when and how the associate chief counsels issue technical advice memoranda (TAMs) to a director or an appeals area director.

  • Rev. Proc. 2013-4 updates Rev. Proc. 2012-4 and explains IRS procedures for issuing exemption letters, information letters and other guidance on issues under the jurisdiction of the division commissioner, and tax exempt government entities.

  • Rev. Proc. 2013-5 updates Rev. Proc 2012-5 and explains when and how the Tax Exempt and Government Entities Division issues TAMs.

  • Rev. Proc. 2013-6 updates Rev. Proc. 2012-6 and explains the IRS’s general procedures for qualified plan determination letter requests.

  • Rev. Proc. 2013-7 updates Rev. Proc. 2012-7 by providing a current list of subject matters under the jurisdiction of the associate chief counsel (international) on which the IRS will not issue letter rulings or determination letters.

  • Rev. Proc. 2013-8 updates Rev. Proc. 2012-8 and provides the procedures and user fees for requesting determination letters from the commissioner, and tax exempt and government entities.

These annual revenue procedures are used to give taxpayers information about how to file requests for guidance, how the IRS will respond to those requests and other administrative matters. To obtain timely responses and to effectively deal with the IRS on complex tax issues, it is important to adhere to the appropriate procedures in requesting guidance in all respects.

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