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 procedure 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 procedures 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, 2013.

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. 2012-5. The Appeals Domestic Operations Director has been added to the reference to the Appeals Area Director in the section that defines the term “technical advice.” In the subsection concerning areas of mandatory technical advice, the IRS has provided a clarification regarding when a TAM is required by the EO Examination office. In the section that concerns when TAMs should be requested, the IRS has added a subsection relating to coordination with the Department of Labor. Specifically, if a case being submitted by EP Examinations involves a prohibited transaction that has not been corrected or a violation of the exclusive benefit rule, EP Examinations must coordinate its examination case with the Department of Labor before submitting the request for technical advice to EP Technical.

Source: IRS Rev. Proc. 2013-5.

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For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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