Procedures updated for furnishing of technical advice by Employee Plans or Exempt Organizations Technical Offices

The IRS has issued updated procedures for the furnishing of technical advice memoranda (TAM) by Employee Plans (EP) Technical or Exempt Organizations (EO) Technical offices to EP and EO Examinations Area managers, EP and EO Determinations managers, or an Appeals Area Director in the employee plans (including actuarial matters) and the exempt organizations areas. The procedures also explains a taxpayer’s rights when an EP or EO Examinations Area manager, an EP or EO Determinations manager, or an Appeals Area Director requests technical advice regarding a tax matter. The procedure may also be used where another Operating Division of the IRS is involved in an examination and EP Technical only has interpretive jurisdiction. The procedures are effective January 2, 2014.

General procedures govern technical advice requests regarding matters within the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division. Requests for Code Sec. 7805(b) relief are mandatory TAMs with respect to all exempt organizations and employee plans matters. Regarding employee plans, TAMs are required for proposed adverse or revocation letters for collectively bargained plans, for an IRS-proposed revocation letter due to alleged fiduciary duty violations, or for amendments to defined contribution plans in connection with a waiver of the minimum funding standard and a request for a determination letter.

The revenue procedure is a general update of Rev. Proc. 2013-5. The IRS states that there have been no significant changes made to the revenue procedure.

Source: IRS Rev. Proc. 2014-5.

Visit our News Library to read more news stories.