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IRS updates no-rule list, procedures for obtaining letter rulings

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Tax Hot Topics: No-rule listThe IRS on Jan. 4 released its annual procedures for obtaining private letter rulings (PLRs) and determination letters, as well as its list of types of issues for which the Office of Chief Counsel would not give a ruling.

Rev. Proc. 2016-1, which provides guidance on how the IRS issues PLRs and determination letters, was modified slightly from its predecessor procedure, Rev. Proc. 2015-1. The updated revenue procedure specifically refers to procedures for taxpayers wishing to revoke an election, indicating that the taxpayer should file for relief under Treas. Reg. Sec. 301.9100 (called 9100 relief).

Rev. Proc. 2016-1 also provides users with fee information for obtaining such rulings. For requests received by the IRS after Feb. 5, 2015, the fee for a PLR is $28,300, which is the same as last year.  The user fee for obtaining 9100 relief is $9,800, which is also the same.

Rev. Proc. 2016-3 lists those areas of the code under the jurisdiction of certain Associate Chief Counsel offices within the IRS Office of Chief Counsel, in which the IRS will not issue letter rulings or determination letters. The IRS deleted three issues from the list (regarding Sections 45, 704(e) and 162 and 1502), and added 17 issues, some of which deal with Section 355 spin-off transactions and Rev. Proc. 2015-43.

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