HIGHLIGHTS Bulletin No. 2020–1 OF THIS ISSUE January 2, 2020 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. ADMINISTRATIVE Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes) relating to matters on which the Service will not issue letter rulings or determination letters. Rev. Proc. 2020-1, page 1. Rev. Proc. 2019-3, 2019-1 I.R.B. 130 is superseded. This procedure contains revised procedures for letter rul- ings and information letters issued by the Associate Chief Counsel (Corporate), Associate Chief Counsel (Financial In- EMPLOYEE PLANS stitutions and Products), Associate Chief Counsel (Income Tax and Accounting), Associate Chief Counsel (Internation- Rev. Proc. 2020-4, page 148. al), Associate Chief Counsel (Passthroughs and Special In- This revenue procedure contains information on the types dustries), Associate Chief Counsel (Procedure and Adminis- of advice provided by the Commissioner, Tax Exempt and tration), and Associate Chief Counsel (Employee Benefits, Government Entities Division, Employee Plans Rulings and Exempt Organizations, and Employment Taxes). This pro- Agreements Office, including procedures for issuing deter- cedure also contains revised procedures for determination mination letters and letter rulings. Rev. Proc. 2019-4 is letters issued by the Large Business and International Divi- superseded. sion, Small Business/Self Employed Division, Wage and In- vestment Division, and Tax Exempt and Government Entities Division. Rev. Proc. 2019-1 superseded. EXEMPT ORGANIZATIONS Rev. Proc. 2020-2, page 107. Rev. Proc. 2020-5, page 241. This procedure explains when and how an Associate office This revenue procedure sets forth procedures for within the Office of Chief Counsel provides technical advice, issuing determination letters on issues under the ju- conveyed in technical advice memoranda (TAMs). It also risdiction of the Director, Exempt Organizations (EO) explains the rights that a taxpayer has when a field office Ruling and Agreements. The revenue procedure also requests a TAM regarding a tax matter. Rev. Proc. 2019-2 superseded. provides guidance on the exhaustion of administrative remedies for the purposes of declaratory judgment Rev. Proc. 2020-3, page 131. under § 7428 and provides the applicable user fees The revenue procedure provides a revised list of areas for requesting determination letters. of the Code under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Finan- INCOME TAX cial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Rev. Proc. 2020-7, page 281. Counsel (Procedure and Administration), and the Associate Areas in which rulings will not be issued, Associate Chief Counsel (International). Finding Lists begin on page ii. The IRS Mission Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and en- force the law with integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument against reaching the same conclusions in other cases unless of the Commissioner of Internal Revenue for announcing of- the facts and circumstances are substantially the same. ficial rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of The Bulletin is divided into four parts as follows: general interest. It is published weekly. Part I.—1986 Code. It is the policy of the Service to publish in the Bulletin all sub- This part includes rulings and decisions based on provisions stantive rulings necessary to promote a uniform application of the Internal Revenue Code of 1986. of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless other- Part II.—Treaties and Tax Legislation. wise indicated. Procedures relating solely to matters of inter- This part is divided into two subparts as follows: Subpart A, nal management are not published; however, statements of Tax Conventions and Other Related Items, and Subpart B, internal practices and procedures that affect the rights and Legislation and Related Committee Reports. duties of taxpayers are published. Part III.—Administrative, Procedural, and Miscellaneous. Revenue rulings represent the conclusions of the Service To the extent practicable, pertinent cross references to these on the application of the law to the pivotal facts stated in subjects are contained in the other Parts and Subparts. Also the revenue ruling. In those based on positions taken in rul- included in this part are Bank Secrecy Act Administrative ings to taxpayers or technical advice to Service field offices, Rulings. Bank Secrecy Act Administrative Rulings are issued identifying details and information of a confidential nature are by the Department of the Treasury’s Office of the Assistant deleted to prevent unwarranted invasions of privacy and to Secretary (Enforcement). comply with statutory requirements. Part IV.—Items of General Interest. Rulings and procedures reported in the Bulletin do not have the This part includes notices of proposed rulemakings, disbar- force and effect of Treasury Department Regulations, but they ment and suspension lists, and announcements. may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and The last Bulletin for each month includes a cumulative index procedures, the effect of subsequent legislation, regulations, for the matters published during the preceding months. These court decisions, rulings, and procedures must be considered, monthly indexes are cumulated on a semiannual basis, and are and Service personnel and others concerned are cautioned published in the last Bulletin of each semiannual period. 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. January 2, 2020 Bulletin No. 2020–1 Part III 26 CFR § 601.201: Rulings and determination letters. Rev. Proc. 2020-1 TABLE OF CONTENTS SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE? .....................................7 .01 Description of terms used in this revenue procedure ......................................................7 .02 Updated annually .................................................................................8 SECTION 2. WHAT ARE THE FORMS IN WHICH THE SERVICE PROVIDES ADVICE TO TAXPAYERS? ..........8 .01 Letter ruling .....................................................................................8 .02 Closing agreement ................................................................................8 .03 Determination letter ...............................................................................9 .04 Information letter .................................................................................9 .05 Oral advice ......................................................................................9 (1) No oral rulings and no written rulings in response to oral requests ......................................10 (2) Discussion possible on substantive issues .........................................................10 (3) Oral guidance is advisory only, and the Service is not bound by it.. .10 SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN ADVICE UNDER THIS REVENUE PROCEDURE? ....................................................................10 .01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate) .....................................10 .02 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and Products) .................11 .03 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting) ......................11 .04 Issues under the jurisdiction of the Associate Chief Counsel (International). .11 .05 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs and Special Industries) ................11 .06 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration) .....................12 .07 Issues under the jurisdiction of the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes) ...........................................................................12 SECTION 4. ON WHAT ISSUES MUST WRITTEN ADVICE BE REQUESTED UNDER DIFFERENT PROCEDURES? .................................................................12 .01 Issues involving alcohol, tobacco, and firearms taxes ....................................................12 .02 Certain issues involving employee plans, individual retirement accounts (IRAs), and exempt organizations .........12 SECTION 5. UNDER WHAT CIRCUMSTANCES DO THE ASSOCIATE OFFICES ISSUE LETTER RULINGS?. .13 .01 In income and gift tax matters ......................................................................13 .02 Special relief for late S corporation and related elections in lieu of letter ruling process .........................13 .03 A § 301.9100 request for extension of time for making an election or for