Private IRS Rulings: New Pilot Program for Fast-tracking Ruling Requests.

• Author: Josephs, Stuart R.
• Position: Fed Tax

Rev. Proc. 2022-10 establishes an 18-month pilot program for fast-tracking processing of certain requests for letter ruling solely or primarily under the jurisdiction of the Associate Chief Counsel Corporate .

This new program applies to requests postmarked or received if not mailed; by the IRS after Jan. 14. 2022. It expires on July 14. 2023, or. if earlier, when a superseding rev. proc. is released. Before that date, the Treasury Department and the IRS will evaluate the pilot program's effectiveness and sustainability to determine whether the program should be extended, If extended, the IRS intends to publish permanent procedures before July 14, 2023.

Background

The IRS publishes an annual rev. proc. explaining Inns the IRS provides advice to taxpayers on issues under each Associate Office's jurisdiction. For example, Rev Proc. 2022-1 explains the forms of advice and the manner in which advice is requested by taxpayers and provided by the IRS. There are seven Associate Chief Counsel Offices covering the following jurisdictions: Corporate; Employee Benefits, Exempt Organizations and Employment Taxes; Financial Institutions and Products; Income Tax and Accounting; International; Passthroughs and Special Industries; and Procedure and Administration.

Expedited Handling of Requests The IRS ordinarily processes requests in order of the date received. However, a written request for expedited handling can be made--explaining in detail the need for such handling. But, this request is granted only in rare and unusual cases, out of fairness to other taxpayers and because the IRS seeks to process all ruling requests as expeditiously as possible and to give appropriate deference to normal business exigencies in all cases.

Nevertheless, the IRS may grant an expedited handling request when a factor outside a taxpayer's control creates a real business need to obtain a ruling before a certain date to avoid serious business consequences.

Fast-track Processing

A taxpayer requesting a letter ruling solely or primarily under the jurisdiction of the Associate Chief Counsel [Corporate) may request fast-track processing, but not expedited handling. However, this process is not available lor requests for extensions of time to make elections or other applications for relief under Regs. Sec. 301.0100. but expected handling is available.

A fast-track request generally will be granted if the letter ruling request is solely under the jurisdiction of the Associate...