The Internal Revenue Service established a program to allow corporate taxpayers to request rulings on certain significant issues.
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- Are solely under the jurisdiction of the IRS's associate chief counsel (corporate);
- Are significant, and,
- Involve the tax consequences or characterization of a transaction (or part of a transaction) that's described in Sections 332, 351, 355, 368 or 1036 of the Internal Revenue Code.
The agency cautioned that the "significant issue" needs to be a "germane and specific issue of law," and wouldn't merely be a "comfort ruling" to reassure corporate taxpayers or "the conclusion in such a ruling otherwise would not be essentially free from doubt." A change of circumstances arising after a transaction ordinarily does not present a significant issue.
All requests for a ruling must contain the following:
- A narrative description of the transaction that puts the significant issue in context;
- A statement identifying the issue;
- An analysis of the relevant law that sets forth the authorities most closely related to the issue, explains why these authorities do not resolve the issue, and explains why the issue is significant;
- Applicable information and representations from relevant revenue procedures with respect to the significant issue (outlined in Appendix F of the revenue procedure) and as otherwise may be required by the Office of Associate Chief Counsel (Corporate) depending on the facts and circumstances;
- If the taxpayer is requesting a ruling on the tax treatment of part of an integrated transaction, a representation regarding the relevant tax consequences of the integrated transaction (to the best knowledge and belief of the taxpayer), assuming that the service issues the requested ruling;
- The precise ruling(s) being requested; and,
- A statement that no rulings outside the jurisdiction of the associate chief counsel (corporate) are requested.
