The IRS has posted the first edition of the Internal Revenue Bulletin for 2017 (IRB 2017-1, dated January 3, 2017) providing text of “annual revenue procedures” for 2017.
Today’s edition of the Internal Revenue Bulletin—IRB 2017-1 [PDF 929 KB]—provides in 278 pages, the text of the following six annual revenue procedures.
Unlike past years’ annual revenue procedures, the IRS has merged guidance and procedures for issuing determination letters and letter rulings on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division into two revenue procedures:
Also, the IRS did not release Rev. Proc. 2017-6 with today’s IRB, and it is not clear whether the IRS will issue a Rev. Proc. 2017-6 or whether this number has been reserved.
There are changes in Rev. Proc. 2017-1 when compared to the guidance provided by the revenue procedure issued for 2016. For instance, there are changes to the schedule of user fees. The new fees are listed in Appendix A to Rev. Proc. 2017-1 for taxpayer requests for letter rulings, closing agreements, and determination letters.
For requests received after February 1, 2017, the user fee for filing:
Other changes in Rev. Proc. 2017-1 reflect that letter rulings may be subject to the exchange of information provisions under U.S. tax treaties or tax information exchange agreements. Also, in requesting a pre-submission conference, taxpayers generally must submit a statement of whether an issue is one that is ordinarily one for which a letter ruling is issued and a draft of the letter ruling request or other detailed information explaining the proposed transaction, issue, and legal analysis. There are clarifications as to when the reduced user fee for “substantially identical letter rulings” applies and on how to calculate the gross income of S corporations.
Among the changes concerning technical advice, as appearing in Rev. Proc. 2017-2, is an amendment to allow taxpayers 10 calendar days to respond to a field office memorandum.
Rev. Proc. 2017-3 provides a revised list of areas under the jurisdiction of the various Chief Counsel offices and for which the IRS will not issue letter rulings or determination letters. For instance, there are nine changes listed, including one regarding the definition of a “significant issue” for purposes of sections 332, 351, 355, 368, and 1036.
Rev. Proc. 2017-4 gathers and consolidates the procedures related to employment plan rulings and agreements (for 2016, these were provided in Rev. Proc. 2016-4, Rev. Proc. 2016-6, and Rev. Proc. 2016-8). In addition, Rev. Proc. 2017-4 includes changes relating to:
Rev. Proc. 2017-5 gathers and consolidates the procedures for issuing determination letters on issues under the jurisdiction of Director, Exempt Organizations Rulings and Agreements (for 2016, these were provided in Rev. Proc. 2016-4, Rev. Proc. 2016-5, Rev. Proc. 2016-8, and Rev. Proc. 2016-10). In addition, Rev. Proc. 2017-4 includes changes relating to:
The IRS reported that Rev. Proc. 2017-7, concerning the “no ruling” areas under the jurisdiction of the Associate Chief Counsel (International), reflects the removal of obsolete provisions and no other changes (except re-numbering to reflect the removal of the obsolete provisions).
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