These synopses are intended only as aids to the reader in

Agency decision

Ask Donna

What actually matters in this document.

Text

HIGHLIGHTS

OF THIS ISSUE

Bulletin No. 2025–1

December 30, 2024

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

ADMINISTRATIVE

Rev. Proc. 2025-1, page 1.

This procedure contains revised procedures for letter rulings and information letters issued by the Associate Chief

Counsel (Corporate), Associate Chief Counsel (Employee

Benefits, Exempt Organizations, and Employment Taxes),

Associate Chief Counsel (Energy, Credits, and Excise Tax),

Associate Chief Counsel (Financial Institutions and Products),

Associate Chief Counsel (Income Tax and Accounting), Associate Chief Counsel (International), Associate Chief Counsel

(Passthroughs, Trusts and Estates), and Associate Chief

Counsel (Procedure and Administration). This procedure also

contains procedures for determination letters issued by the

Large Business and International Division, Small Business/

Self Employed Division, Wage and Investment Division, and

Tax Exempt and Government Entities Division. Rev. Proc.

2024-1 is superseded.

Rev. Proc. 2025-2, page 118.

This revenue procedure explains when and how an Associate

office within the Office of Chief Counsel provides technical

advice, conveyed in technical advice memoranda (TAMs). It

also explains the rights that a taxpayer has when a field office

requests a TAM regarding a tax matter. Rev. Proc. 2024-2 is

superseded.

Rev. Proc. 2025-7, page 301

Areas in which rulings will not be issued, Associate Chief

Counsel (International).

ADMINISTRATIVE, EMPLOYEE PLANS,

EMPLOYMENT TAX, ESTATE TAX,

EXCISE TAX, GIFT TAX, INCOME TAX

Rev. Proc. 2025-3, page 142.

The revenue procedure updates Rev. Proc. 2024-3, 2024-1

I.R.B.143, to provide a revised list of areas under the jurisFinding Lists begin on page ii.

diction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products),

the Associate Chief Counsel (Income Tax and Accounting),

the Associate Chief Counsel (Passthroughs, Trusts and

Estates), the Associate Chief Counsel (Energy, Credits, and

Excise Tax), the Associate Chief Counsel (Procedure and

Administration), and the Associate Chief Counsel (Employee

Benefits, Exempt Organizations, and Employment Taxes)

(EEE) relating to issues on which the Internal Revenue Service will not issue letter rulings or determination letters.

Areas under the jurisdiction of the Associate Chief Counsel

(International) and the Commissioner, Tax Exempt and Government Entities (TEGE) Division are provided in separate

revenue procedures.

EMPLOYEE PLANS

Rev. Proc. 2025-4, page 158.

This document updates Rev. Proc. 2024-4, 2024-1 IRB

160, relating to the types of advice the IRS provides to

taxpayers on issues under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division,

Employee Plans Rulings and Agreements, and the procedures that apply to requests for determination letters and

private letter rulings.

EXEMPT ORGANIZATIONS

Rev. Proc. 2025-5, page 260.

This revenue procedure sets forth procedures for issuing determination letters on issues under the jurisdiction

of the Director, Exempt Organizations (EO) Rulings and

Agreements. Specifically, it explains the procedures for

issuing determination letters on tax-exempt status (in

response to applications for recognition of exemption

from Federal income tax under § 501 or § 521 other

than those subject to Rev. Proc. 2025-4, this Bulletin

(relating to pension, profit-sharing, stock bonus, annuity,

and employee stock ownership plans), private foundation

status, and other determinations related to tax-exempt

organizations. These procedures also apply to revocation or modification of determination letters. This revenue procedure also provides guidance on the exhaustion

of administrative remedies for purposes of declaratory

judgment under § 7428. Finally, this revenue procedure

provides guidance on applicable user fees for requesting

determination letters.

The IRS Mission

Provide America’s taxpayers top-quality service by helping

them understand and meet their tax responsibilities and

enforce the law with integrity and fairness to all.

Introduction

The Internal Revenue Bulletin is the authoritative instrument

of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service

and for publishing Treasury Decisions, Executive Orders, Tax

Conventions, legislation, court decisions, and other items of

general interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application

of the tax laws, including all rulings that supersede, revoke,

modify, or amend any of those previously published in the

Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of

internal practices and procedures that affect the rights and

duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service

on the application of the law to the pivotal facts stated in

the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,

identifying details and information of a confidential nature are

deleted to prevent unwarranted invasions of privacy and to

comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the

force and effect of Treasury Department Regulations, but they

may be used as precedents. Unpublished rulings will not be

relied on, used, or cited as precedents by Service personnel in

the disposition of other cases. In applying published rulings and

procedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,

and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless

the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on provisions

of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A,

Tax Conventions and Other Related Items, and Subpart B,

Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to these

subjects are contained in the other Parts and Subparts. Also

included in this part are Bank Secrecy Act Administrative

Rulings. Bank Secrecy Act Administrative Rulings are issued

by the Department of the Treasury’s Office of the Assistant

Secretary (Enforcement).

Part IV.—Items of General Interest.

This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index

for the matters published during the preceding months. These

monthly indexes are cumulated on a semiannual basis, and are

published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

December 30, 2024

Bulletin No. 2025–1

Part III

26 CFR § 601.201: Rulings and determination letters.

Rev. Proc. 2025-1

TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

.01 Description of terms used in this revenue procedure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

.02 Updated annually. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

SECTION 2. WHAT ARE THE FORMS IN WHICH THE SERVICE PROVIDES ADVICE TO TAXPAYERS?. . . . . . . . .8

.01 Letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

.02 Closing agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

.03 Determination letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

.04 Information letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

.05 Oral advice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

(1) No oral rulings and no written rulings in response to oral requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

(2) Discussion possible on substantive issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

(3) Oral guidance is advisory only, and the Service is not bound by it. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN ADVICE UNDER THIS REVENUE

PROCEDURE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

.01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

.02 Issues under the jurisdiction of the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and

Employment Taxes). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

.03 Issues under the jurisdiction of the Associate Chief Counsel (Energy, Credits, and Excise Tax). . . . . . . . . . . . . . . . . . . 11

.04 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and Products). . . . . . . . . . . . . . . . . 11

.05 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting). . . . . . . . . . . . . . . . . . . . . . 11

.06 Issues under the jurisdiction of the Associate Chief Counsel (International) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

.07 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs, Trusts and Estates) . . . . . . . . . . . . . . . . . . 12

.08 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration). . . . . . . . . . . . . . . . . . . . .12

SECTION 4. ON WHAT ISSUES MUST WRITTEN ADVICE BE REQUESTED UNDER DIFFERENT

PROCEDURES? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

.01 Issues involving alcohol, tobacco, and firearms taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

.02 Certain issues involving qualified retirement plans, individual retirement accounts (IRAs), and

exempt organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

SECTION 5. UNDER WHAT CIRCUMSTANCES DO THE ASSOCIATE OFFICES ISSUE LETTER RULINGS?. . . . . 13

.01 In income and gift tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

.02 Special relief for late S corporation and related elections in lieu of letter ruling process. . . . . . . . . . . . . . . . . . . . . . . . . 13

.03 A § 301.9100 request for extension of time for making an election or for other relief. . . . . . . . . . . . . . . . . . . . . . . . . . . 13

(1) Format of request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

(2) Period of limitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

(3) Taxpayer must notify the Associate office if examination of its return begins while the request is pending. . . . . . 14

(4) Associate office will notify the examination agent, Appeals officer, or attorney of a § 301.9100 request

if the taxpayer’s return is being examined by a field office or is being considered by an Appeals office or

a Federal court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009-41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

(6) Relief for late classification election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

.04 Determinations under § 999(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

.05 In matters involving § 367. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

.06 In estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

.07 In matters involving additional estate tax under § 2032A(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

.08 In matters involving qualified domestic trusts under § 2056A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Bulletin No. 2025–1

December 30, 2024

.09

.10

.11

.12

.13

.14

.15

.16

.17

In generation-skipping transfer tax matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

In employment and excise tax matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

In procedural and administrative matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

In Indian tribal government matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

(1) Definition of Indian tribal government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

(2) Inclusion in list of tribal governments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

On constructive sales price under § 4216(b) or § 4218(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

In exempt organizations matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

In qualified retirement plan and IRA matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

A request to revoke an election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Under some circumstances before the issuance of a regulation or other published guidance. . . . . . . . . . . . . . . . . . . . . . 18

(1) Answer is clear or is reasonably certain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

(2) Answer is not reasonably certain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

SECTION 6. UNDER WHAT CIRCUMSTANCES DOES THE SERVICE NOT ISSUE LETTER RULINGS OR

DETERMINATION LETTERS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

.01 Ordinarily not if the request involves an issue under examination or consideration or in litigation. . . . . . . . . . . . . . . . . 18

.02 Ordinarily not in certain areas because of factual nature of the problem or for other reasons. . . . . . . . . . . . . . . . . . . . . .19

.03 Ordinarily not on part of an integrated transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

.04 Ordinarily not on which of two entities is a common law employer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

.05 Ordinarily not to business associations or groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

.06 Ordinarily not where the request does not address the tax status, liability, or reporting obligations of

the requester. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

.07 Ordinarily not to foreign governments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

.08 Ordinarily not on Federal tax consequences of proposed legislation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

.09 Ordinarily not before issuance of a regulation or other published guidance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

.10 Not on frivolous issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

.11 No “comfort” letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

.12 Not on alternative plans or hypothetical situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

.13 Not on property conversions after return filed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

.14 Circumstances under which determination letters are not issued by a Director. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

SECTION 7. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS AND

DETERMINATION LETTERS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

.01 Documents and information required in all requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

(1) Complete statement of facts and other information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents pertinent to

the transaction, and foreign laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

(3) Analysis of material facts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

(4) Statement regarding whether same issue is presented in any return and additional information required for

§ 301.9100 requests ��24

(5) Statement regarding whether same or similar issue was previously ruled on or whether a request

involving it was submitted or is currently pending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

(6) Statement regarding interpretation of a substantive provision of an income or estate tax treaty. . . . . . . . . . . . . . . . 25

(7) Statement regarding involvement of a transactional party located in a foreign country. . . . . . . . . . . . . . . . . . . . . . 25

(8) Letter from Bureau of Indian Affairs relating to a letter ruling request for recognition of Indian tribal

government status or status as a political subdivision of an Indian tribal government.. . . . . . . . . . . . . . . . . . . . . . . 26

(9) Statement of supporting authorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

(10) Statement of contrary authorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

(11) Statement identifying pending legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

(12) Statement identifying information to be deleted from the public inspection copy of letter ruling or

determination letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

(13) Signature by taxpayer or authorized representative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

(14) Authorized representatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

(15) Power of Attorney and Declaration of Representative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

(16) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

(17) Sample format for a letter ruling request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

(18) Checklist for letter ruling requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

December 30, 2024

Bulletin No. 2025–1

.02 Additional procedural information required with request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

(1) To request separate letter rulings for multiple issues in a single situation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

(2) Power of attorney used to indicate recipient or recipients of a copy or copies of a letter ruling or

a determination letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

(3) To request a particular conclusion on a proposed transaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

(4) To request expedited handling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

(5) To request the receipt of any document related to letter ruling request by fax, electronic facsimile,

or encrypted email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

(6) To request a conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

.03 Letter ruling requests involving welfare benefit funds (including voluntary employees’ beneficiary

associations (VEBAs)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

.04 Submitting request for letter ruling or determination letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

(1) Submission by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

(2) Submission by electronic facsimile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

(3) Submission by encrypted email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

.05 Pending letter ruling requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

(1) Circumstances under which the taxpayer with a pending letter ruling request must notify

the Associate office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

(2) Taxpayer must notify the Associate office if a return is filed and must attach the request to the return. . . . . . . . . . 38

.06 When to attach letter ruling or determination letter to return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

.07 How to check on status of request for letter ruling or determination letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

.08 Request for letter ruling or determination letter may be withdrawn or Associate office may decline to

issue letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

(2) Notification of appropriate Service official . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

SECTION 8. HOW DO THE ASSOCIATE OFFICES HANDLE LETTER RULING REQUESTS?. . . . . . . . . . . . . . . . . . . 40

.01 Technical Services Support Branch receives, initially controls, and refers the requests to the appropriate

Associate office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

.02 Branch representative of the Associate office contacts taxpayer within 21 calendar days . . . . . . . . . . . . . . . . . . . . . . . . 40

.03 Determines if transaction can be modified to obtain favorable letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

.04 Not bound by informal opinion expressed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

.05 May request additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

(1) Additional information must be submitted within 21 calendar days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

(2) Extension of reply period if justified and approved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

(3) Letter ruling request closed if the taxpayer does not submit additional information. . . . . . . . . . . . . . . . . . . . . . . . . 42

(4) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

(5) Transmitting request and submitting additional information by fax, electronic facsimile, or

encrypted email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

(6) Submitting additional information by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

(7) Identifying information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

.06 Near the completion of the ruling process, advises the taxpayer of conclusions and, if the Associate office

will rule adversely, offers the taxpayer the opportunity to withdraw the letter ruling request . . . . . . . . . . . . . . . . . . . . . 43

.07 May request that taxpayer submit draft proposed letter ruling near the completion of the ruling process . . . . . . . . . . . . 43

.08 Issues separate letter rulings for substantially identical letter rulings, but generally issues a single letter ruling

for related § 301.9100 letter rulings and for related § 1362(f) letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

(1) Substantially identical letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

(2) Related § 301.9100 letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

(3) Related § 1362(f) letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

.09 Sends a copy of the letter ruling to appropriate Service official . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

SECTION 9. WHAT ARE THE SPECIFIC AND ADDITIONAL PROCEDURES FOR A REQUEST FOR

A CHANGE IN METHOD OF ACCOUNTING FROM THE ASSOCIATE OFFICES?. . . . . . . . . . . . . . . . . . 44

.01 Automatic and non-automatic change in method of accounting requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

(1) Automatic change in method of accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

(2) Non-automatic change in method of accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

.02 Ordinarily only one change in method of accounting on a Form 3115, Application for Change in Accounting

Method, and a separate Form 3115 for each taxpayer and for each separate and distinct trade or business. . . . . . . . . . . 45

Bulletin No. 2025–1

December 30, 2024

.03 Information required with a Form 3115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

(1) Facts and other information requested on Form 3115 and in applicable revenue procedures. . . . . . . . . . . . . . . . . . 45

(2) Statement of contrary authorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

(3) Copies of all contracts, agreements, and other documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

(4) Analysis of material facts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

(5) Information regarding whether same issue is in an earlier return under examination. . . . . . . . . . . . . . . . . . . . . . . . 47

(6) Statement regarding prior requests for a change in method of accounting and other pending requests . . . . . . . . . . 47

(7) Statement identifying pending legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

(8) Authorized representatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

(9) Power of Attorney and Declaration of Representative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

(10) Tax Information Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

(11) Penalties of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

.04 Additional procedural information required in certain circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

(1) Recipients of original and copy of change in method of accounting correspondence. . . . . . . . . . . . . . . . . . . . . . . . 48

(2) To request expedited handling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

(3) To request the receipt of the change in method of accounting letter ruling or any other correspondence

related to Form 3115 by fax, electronic facsimile, or encrypted email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . 48

(4) To request a conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

.05 Submitting non-automatic Forms 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

(1) Submission by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

(2) Submission by electronic facsimile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

(3) Submission by encrypted email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

.06 Submitting automatic Forms 3115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

(1) Submission by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

(2) Submission by fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

.07 Technical Services Support Branch receives, initially controls, and refers the Form 3115 to

the appropriate Associate office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

.08 Additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

(1) Reply period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

(2) Request for extension of reply period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

(3) Penalties of perjury statement for additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

(4) Identifying information included in additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

(5) Transmitting request and submitting additional information by fax, electronic facsimile, or encrypted

email attachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

(6) Submitting additional information by mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

(7) Failure to timely submit additional information to the Associate office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

.09 Circumstances in which the taxpayer must notify the Associate office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

.10 Determines if proposed method of accounting can be modified to obtain favorable letter ruling. . . . . . . . . . . . . . . . . . . 54

.11 Near the completion of processing the Form 3115, advises the taxpayer if the Associate office will rule

adversely and offers the taxpayer the opportunity to withdraw Form 3115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

.12 Non-automatic Form 3115 may be withdrawn or Associate office may decline to issue a change in method of

accounting letter ruling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

(2) Notification of appropriate Service official . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

.13 How to check status of a pending non-automatic Form 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

.14 Service is not bound by informal opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

.15 Single letter ruling issued to a taxpayer or consolidated group for qualifying identical change in method of

accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

.16 Letter ruling ordinarily not issued for one of two or more interrelated items or submethods. . . . . . . . . . . . . . . . . . . . . . 55

.17 Consent Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

.18 A copy of the change in method of accounting letter ruling is sent to appropriate Service officials. . . . . . . . . . . . . . . . . 57

.19 Consent to change a method of accounting may be relied on subject to limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

.20 Change in method of accounting letter ruling does not apply to another taxpayer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

.21 Associate office discretion to permit requested change in method of accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

.22 List of automatic change in method of accounting request procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

.23 Other sections of this revenue procedure that are applicable to Form 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

December 30, 2024

Bulletin No. 2025–1

SECTION 10. HOW ARE CONFERENCES FOR LETTER RULINGS SCHEDULED?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

.01 Schedules a conference if requested by taxpayer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

.02 Permits taxpayer one conference of right. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

.03 Disallows verbatim recording of conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

.04 Makes tentative recommendations on substantive issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

.05 May offer additional conferences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

.06 Requires written confirmation of information presented at conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

.07 May schedule a pre-submission conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

(1) Taxpayer may request a pre-submission conference in writing or by telephone. . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

(2) Pre-submission conference held in person or by telephone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

(3) Certain information required to be submitted to the Associate office prior to the pre-submission conference. . . . . 63

(4) Discussion of substantive issues not binding on the Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

.08 May schedule a conference to be held by telephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

.09 Pre-submission conferences under Rev. Proc. 2023-26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

SECTION 11. WHAT EFFECT WILL A LETTER RULING HAVE?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

.01 May be relied on subject to limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

.02 Will not apply to another taxpayer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

.03 Will be used by a field office in examining the taxpayer's return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

.04 May be revoked or modified if found to be in error or there has been a change in law. . . . . . . . . . . . . . . . . . . . . . . . . . . 64

.05 Letter ruling revoked or modified based on material change in facts applied retroactively . . . . . . . . . . . . . . . . . . . . . . . 65

.06 Not otherwise generally revoked or modified retroactively. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

.07 Retroactive effect of revocation or modification applied to a particular transaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

.08 Retroactive effect of revocation or modification applied to a continuing action or series of actions . . . . . . . . . . . . . . . . 66

.09 Generally not retroactively revoked or modified if related to sale or lease subject to excise tax . . . . . . . . . . . . . . . . . . . 66

.10 May be retroactively revoked or modified when transaction is entered into before the issuance of the letter ruling. . . . 66

.11 Taxpayer may request that retroactive effect of revocation or modification be limited. . . . . . . . . . . . . . . . . . . . . . . . . . .66

(1) Request for relief under § 7805(b) must be made in required format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

(2) Taxpayer may request a conference on application of § 7805(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67

SECTION 12. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS?. . . . . . . . 67

.01 In income and gift tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

.02 In estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

.03 In generation-skipping transfer tax matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

.04 In employment and excise tax matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

.05 In tax-exempt matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

.06 Requests concerning income, estate, or gift tax returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.07 Review of determination letters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.01 Has same effect as a letter ruling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

.02 Taxpayer may request that retroactive effect of revocation or modification be limited. . . . . . . . . . . . . . . . . . . . . . . . . . .69

(1) Request for relief under § 7805(b) must be made in required format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

(2) Taxpayer may request a conference on application of § 7805(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

SECTION 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN A DIRECTOR

AND AN ASSOCIATE OFFICE?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

.01 Requests for determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

.02 No-rule areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

.03 Requests for letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

.04 Letter ruling request mistakenly sent to a Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER RULINGS

AND DETERMINATION LETTERS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.01 Legislation authorizing user fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.02 Requests to which a user fee applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.03 Requests to which a user fee does not apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

.04 Exemptions from the user fee requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Bulletin No. 2025–1

December 30, 2024

.05 Fee schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

.06 Applicable user fee for a request involving multiple offices, fee categories, issues, transactions, or entities. . . . . . . . . . 72

(1) Requests involving several offices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

(2) Requests involving several fee categories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

(3) Requests involving several issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

(4) Requests involving several unrelated transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

(5) Requests involving several entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

(6) Requests made by married taxpayers who file jointly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

.07 Applicable user fee for requests for substantially identical letter rulings or closing agreements, or identical

changes in method of accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

(1) In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

(2) Substantially identical letter rulings and closing agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

(3) Substantially identical plans under § 25(c)(2)(B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

(4) Identical changes in method of accounting and related § 301.9100 letter rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . 75

.08 Method of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

.09 Effect of nonpayment or payment of incorrect amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

.10 Refunds of user fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

.11 Request for reconsideration of user fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

SECTION 16. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REVENUE PROCEDURE 2024-1?. . . . . . . . 78

SECTION 17. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS? . . . . . . . . . . . 79

SECTION 18. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE?. . . . . . . . . . . . . . . . . . . . . . . . . . . 79

SECTION 19. PAPERWORK REDUCTION ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

DRAFTING INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

INDEX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

APPENDIX A—SCHEDULE OF USER FEES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

APPENDIX B—SAMPLE FORMAT FOR A LETTER RULING REQUEST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

APPENDIX C—CHECKLIST: IS YOUR LETTER RULING REQUEST COMPLETE?. . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

APPENDIX D—ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLAN RULING REQUESTS . . . . . . . . . 97

APPENDIX E—ADDITIONAL CHECKLIST FOR CHURCH PLAN RULING REQUESTS . . . . . . . . . . . . . . . . . . . . . . . . 98

APPENDIX F—CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR REVENUE

PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . 99

.01 Checklists, guideline revenue procedures, and notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

.02 Safe harbor revenue procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

.03 Automatic change in accounting period revenue procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

APPENDIX G—MEMORANDUM OF UNDERSTANDING ACKNOWLEDGING RISK WITH EMAIL. . . . . . . . . . . . . 108

APPENDIX H—MEMORANDUMS OF UNDERSTANDING AGREEING TO USE ENCRYPTED EMAIL

ATTACHMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

.01 Agreement to use encrypted email attachments (compressed Zip format) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

.02 Agreement to use encrypted email attachments (Adobe Acrobat Pro password encryption) . . . . . . . . . . . . . . . . . . . . . 112

.03 Agreement to use encrypted email attachments (Microsoft Office 2016/365 password encryption) . . . . . . . . . . . . . . . 115

December 30, 2024

Bulletin No. 2025–1

SECTION 1. WHAT IS

THE PURPOSE OF THIS

REVENUE PROCEDURE?

Description of terms used in

this revenue procedure

This revenue procedure explains how the Service provides advice to taxpayers on issues under

the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Employee

Benefits, Exempt Organizations, and Employment Taxes), the Associate Chief Counsel (Energy, Credits,

and Excise Tax), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief

Counsel (Income Tax and Accounting), the Associate Chief Counsel (International), the Associate

Chief Counsel (Passthroughs, Trusts and Estates), and the Associate Chief Counsel (Procedure and

Administration). It explains the forms of advice and the manner in which advice is requested by taxpayers

and provided by the Service. A sample format for a letter ruling request is provided in Appendix B. See

section 4 of this revenue procedure for information on certain issues outside the scope of this revenue

procedure on which advice may be requested under a different revenue procedure.

.01 For purposes of this revenue procedure—

(1) the term “Service” includes the four operating divisions of the Internal Revenue Service and

the Associate offices. The four operating divisions are:

(a) Large Business & International Division (LB&I), which generally serves corporations, S

corporations, and partnerships, with assets in excess of $10 million. It also serves U.S. citizens

and residents with offshore activities and non-residents with U.S. activities.

(b) Small Business/Self-Employed Division (SB/SE), which generally serves corporations,

including S corporations, and partnerships, with assets less than or equal to $10 million;

filers of gift, estate, excise, employment and fiduciary returns; individuals filing an individual

Federal income tax return with accompanying Schedule C (Profit or Loss From Business (Sole

Proprietorship)), Schedule E (Supplemental Income and Loss), Schedule F (Profit or Loss From

Farming), or Form 2106, Employee Business Expenses;

income only (and with no international tax returns) filing an individual Federal income tax return

without accompanying Schedule C, E, or F, or Form 2106; and

(d) Tax Exempt and Government Entities Division (TE/GE), which serves three distinct taxpayer

segments: employee plans (including IRAs), exempt organizations, and government entities.

(2) the term "Associate office" refers to the Office of Associate Chief Counsel (Corporate), the

Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment

Taxes), the Office of Associate Chief Counsel (Energy, Credits, and Excise Tax), the Office of

Associate Chief Counsel (Financial Institutions and Products), the Office of Associate Chief

Counsel (Income Tax and Accounting), the Office of Associate Chief Counsel (International), the

Office of Associate Chief Counsel (Passthroughs, Trusts and Estates), or the Office of Associate

Chief Counsel (Procedure and Administration), as appropriate.

(3) the term “Director” refers to the Practice Area Director, LB&I; Director, Field Operations,

LB&I; Area Director, Field Examination, SB/SE; Director, Specialty Examination Policy, SB/

SE; Program Manager, Estate & Gift Tax Policy, SB/SE; Program Manager, Employment Tax

Policy, SB/SE; Program Manager, Excise Tax Policy, SB/SE; Director, Return Integrity &

Compliance Services, TS; Director, Employee Plans; Director, Employee Plans, Rulings and

Agreements; Director, Employee Plans Examinations; Director, Exempt Organizations; Director,

Exempt Organizations, Rulings and Agreements; Director, Exempt Organizations Examinations;

or Director, Government Entities, as appropriate.

(4) the term “field office” refers to the respective offices of the Directors, as appropriate.

Bulletin No. 2025–1

December 30, 2024

(5) the term "taxpayer" includes all persons subject to any provision of the Internal Revenue

Code and, when appropriate, their representatives. More specifically, the term includes tax-exempt

organizations, as well as issuers of tax-exempt obligations, mortgage credit certificates, and tax

credit bonds.

(6) the terms “Appeals” and “Appeals office” refer to the Internal Revenue Service Independent

Office of Appeals.

Updated annually

.02 This revenue procedure is updated annually as the first revenue procedure of the year, but it

may be modified, amplified or clarified during the year.

SECTION 2. WHAT

ARE THE FORMS IN

WHICH THE SERVICE

PROVIDES ADVICE TO

TAXPAYERS?

The Service provides advice in the form of letter rulings, closing agreements, determination

letters, information letters, and oral advice.

Letter ruling

.01 A "letter ruling" is a written determination issued to a taxpayer by an Associate office

in response to the taxpayer’s written inquiry, filed prior to the filing of returns or reports that

are required by the tax laws, about its status for tax purposes or the tax effects of its acts or

transactions. A letter ruling interprets the tax laws and applies them to the taxpayer's specific set

of facts. A letter ruling is issued when appropriate in the interest of sound tax administration. One

type of letter ruling is an Associate office’s response granting or denying a request for a change

in a taxpayer’s method of accounting or accounting period. Once issued, a letter ruling may be

revoked or modified for a number of reasons. See section 11 of this revenue procedure. A letter

ruling may be issued with a closing agreement, however, and a closing agreement is final unless

fraud, malfeasance, or misrepresentation of a material fact can be shown. See section 2.02 of this

revenue procedure.

Letter rulings are subject to exchange of information under U.S. tax treaties or tax information

exchange agreements in accordance with the terms of such treaties and agreements (including

terms regarding relevancy, confidentiality, and the protection of trade secrets).

Closing agreement

.02 A "closing agreement" is a final agreement between the Service and a taxpayer on a specific

issue or liability. It is entered into under the authority in § 7121, and it is final unless fraud,

malfeasance, or misrepresentation of a material fact can be shown. A closing agreement may

be entered into when it is advantageous to have a matter permanently and conclusively closed

or when a taxpayer can show that there are good reasons for an agreement and that making the

agreement will not prejudice the interests of the Government.

A taxpayer may request a closing agreement with a letter ruling or in lieu of a letter ruling, with

respect to a transaction that would be eligible for a letter ruling. If the Service agrees that a closing

agreement is appropriate, the Associate Chief Counsel with subject matter jurisdiction signs the

closing agreement on behalf of the Service.

In appropriate cases, the Service may ask a taxpayer to enter into a closing agreement as a

condition for the issuance of a letter ruling or in lieu of issuing a letter ruling.

If, in a single case, a closing agreement is requested for each person or entity in a class of

taxpayers, separate agreements are entered into only if the class consists of 25 or fewer taxpayers.

If the issue and holding are identical for the class and there are more than 25 taxpayers in the class,

December 30, 2024

Bulletin No. 2025–1

a "mass closing agreement" will be entered into with the taxpayer who is authorized by the others

to represent the class.

Determination letter

.03 A "determination letter" is a written determination issued by a Director that applies the

principles and precedents previously announced by the Service to a specific set of facts. It is issued

only when a determination can be made based on clearly established rules in a statute, a tax treaty,

the regulations, a conclusion in a revenue ruling, or an opinion or court decision that represents

the position of the Service.

Information letter

.04 An "information letter" is a statement issued by an Associate office or Director that calls

attention to a well-established interpretation or principle of tax law (including a tax treaty)

without applying it to a specific set of facts. An information letter may be issued if the taxpayer's

inquiry indicates a need for general information or if the taxpayer's request does not meet the

requirements of this revenue procedure and the Service concludes that general information will

help the taxpayer. An information letter is advisory only and has no binding effect on the Service.

If the Associate office issues an information letter in response to a request for a letter ruling that

does not meet the requirements of this revenue procedure, the information letter is not a substitute

for a letter ruling. The taxpayer should provide a daytime telephone number with the taxpayer's

request for an information letter.

Information letters that are issued by the Associate offices to members of the public are made

available to the public. Information letters that are issued by the field offices are generally not

made available to the public.

Because information letters do not constitute written determinations as defined in § 6110, they

are not subject to public inspection under § 6110. The Service makes the information letters

available to the public under the Freedom of Information Act (the “FOIA”). Before any information

letter is made available to the public, an Associate office will redact any information exempt

from disclosure under the FOIA. See, e.g., 5 U.S.C. § 552(b)(6) (exemption for information

the disclosure of which would constitute a clearly unwarranted invasion of personal privacy); 5

U.S.C. § 552(b)(3) in conjunction with § 6103 (exemption for returns and return information as

defined in § 6103(b)).

The following documents also will not be available for public inspection as part of this process:

(1) transmittal letters in which the Service furnishes publications or other publicly available

material to taxpayers, without any significant legal discussion;

(2) responses to taxpayer or third party contacts that are inquiries with respect to a pending

request for a letter ruling, technical advice memorandum, or Chief Counsel Advice (which are

subject to public inspection under § 6110 after their issuance); and

(3) responses to taxpayer or third party communications with respect to any investigation, audit,

litigation, or other enforcement action.

Oral Advice

.05

(1) No oral rulings and no written rulings in response to oral requests. The Service does not

orally issue letter rulings or determination letters, nor does it issue letter rulings or determination

letters in response to oral requests from taxpayers. Service employees ordinarily will discuss

Bulletin No. 2025–1

December 30, 2024

with taxpayers or their representatives inquiries about whether the Service will rule on particular

issues and about procedural matters regarding the submission of requests for letter rulings or

determination letters for a particular case.

(2) Discussion possible on substantive issues. At the discretion of the Service and as

time permits, Service employees may also discuss substantive issues with taxpayers or their

representatives. Such a discussion will not bind the Service or the Office of Chief Counsel, and it

cannot be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).

Service employees who are not directly involved in the examination, appeal, or litigation of

particular substantive tax issues will not discuss those issues with taxpayers or their representatives

unless the discussion is coordinated with Service employees who are directly involved. The

taxpayer or the taxpayer's representative ordinarily will be asked whether an oral request for

advice or information relates to a matter pending before another office of the Service or before a

Federal court.

If a tax issue is not under examination, in Appeals, or in litigation, the tax issue may be discussed

even though the issue is affected by a nontax issue pending in litigation.

A taxpayer may seek oral technical guidance from a taxpayer service representative in a field

office or Service Center when preparing a return or report.

The Service does not respond to letters seeking to confirm the substance of oral discussions, and

the absence of a response to such a letter is not a confirmation.

(3) Oral guidance is advisory only, and the Service is not bound by it. Oral guidance is

advisory only, and the Service is not bound by it, for example, when examining the taxpayer's

return.

SECTION 3. ON

WHAT ISSUES MAY

TAXPAYERS REQUEST

WRITTEN ADVICE

UNDER THIS REVENUE

PROCEDURE?

Taxpayers may request letter rulings, information letters, and closing agreements under

this revenue procedure on issues within the jurisdiction of the Associate offices. Taxpayers

uncertain as to whether an Associate office has jurisdiction with regard to a specific factual

situation may call the telephone number for the Associate office listed in section 10.07(1) of

this revenue procedure.

Except as provided in section 6.14 of this revenue procedure, taxpayers also may request

determination letters from the Director in the appropriate operating division. See sections 7 and

12 of this revenue procedure. For determination letters from TE/GE, see Rev. Proc. 2025-4 and

Rev. Proc. 2025-5, this Bulletin.

Issues under the

jurisdiction of the Associate

Chief Counsel (Corporate)

.01 Issues under the jurisdiction of the Associate Chief Counsel (Corporate) include those that

involve consolidated returns, corporate acquisitions, reorganizations, liquidations, redemptions,

spinoffs, transfers to controlled corporations, distributions to shareholders, corporate bankruptcies,

the effect of certain ownership changes on net operating loss carryovers and other tax attributes,

debt vs. equity determinations, allocation of income and deductions among taxpayers, acquisitions

made to evade or avoid income tax, certain earnings and profits questions, and the excise tax on

repurchases of corporate stock under § 4501.

For information on letter rulings under § 355 involving businesses in certain development

(R&D) and other activities that have not collected income, see IRS Statements issued on May 6,

December 30, 2024

Bulletin No. 2025–1

2019 and September 25, 2018. See the IRS Statement issued on October 13, 2017 for information

regarding letter rulings involving retention of stock, drop-spin liquidate transactions, and transfers

of a portion of a subsidiary’s assets to its corporate shareholder in transactions not qualifying under

§ 332 or § 355 but that are intended to qualify as tax-free. These IRS Statements are available at

https://www.irs.gov/newsroom/statements-from-office-of-the-chief-counsel.

For the procedures to obtain fast-track processing of certain requests for letter rulings solely or

primarily under the jurisdiction of the Associate Chief Counsel (Corporate), see Rev. Proc. 202326, 2023-33 I.R.B. 486.

Issues under the

jurisdiction of the

Associate Chief Counsel

(Employee Benefits,

Exempt Organizations, and

Employment Taxes)

.02 Issues under the jurisdiction of the Associate Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment Taxes) include those that involve the application of

employment taxes and taxes on self-employment income, exemption requirements for tax-exempt

organizations, tax treatment (including application of the unrelated business income tax) of taxexempt organizations (including federal, state, local, and Indian tribal governments), political

organizations described in § 527, qualified tuition programs described in § 529, qualified ABLE

programs described in § 529A, trusts described in § 4947(a), certain excise taxes, disclosure

obligations and information return requirements of tax-exempt organizations, employee benefit

programs (including executive compensation arrangements, qualified retirement plans, deferred

compensation plans, and health and welfare benefit programs) and IRAs, issues integrally related

to employee benefit programs and IRAs (such as, for example, the sale of stock to employee stock

ownership plans or eligible worker-owned cooperatives under § 1042), and changes in method of

accounting associated with employee benefit programs.

Note that certain issues involving exempt organizations, employee plans, and government

entities fall under the jurisdiction of the Commissioner, TE/GE, of the Internal Revenue Service.

See Rev. Proc. 2025-4 and Rev. Proc. 2025-5, this Bulletin.

Issues under the

jurisdiction of the Associate

Chief Counsel (Energy,

Credits, and Excise Tax)

.03 Issues under the jurisdiction of the Associate Chief Counsel (Energy, Credits, and Excise

Tax) include certain excise taxes, depletion, and other engineering issues, cooperative housing

corporations, farmers' cooperatives under § 521, the low-income housing credit under § 42, the

New Markets Tax Credit under § 45D, the rehabilitation credit under § 47, disabled access credit,

qualified electric vehicle credits, research and experimental expenditures, shipowners' protection

and indemnity associations under § 526, and certain homeowners associations under § 528.

Issues under the

jurisdiction of the Associate

Chief Counsel (Financial

Institutions and Products)

.04 Issues under the jurisdiction of the Associate Chief Counsel (Financial Institutions and

Products) include those that involve income taxes and changes in method of accounting of

banks, savings and loan associations, real estate investment trusts (REITs), regulated investment

companies (RICs), real estate mortgage investment conduits (REMICs), insurance companies

and products, tax-exempt obligations, mortgage credit certificates, tax credit bonds (including

specified tax credit bonds), build America bonds, and financial products.

For the procedures to obtain letter rulings involving tax-exempt state and local obligations, see

Rev. Proc. 96-16, 1996-1 C.B. 630.

Issues under the

jurisdiction of the Associate

Chief Counsel (Income Tax

and Accounting)

Bulletin No. 2025–1

.05 Issues under the jurisdiction of the Associate Chief Counsel (Income Tax and Accounting)

include those that involve recognition and timing of income and deductions of individuals and

corporations, sales and exchanges, capital gains and losses, installment sales, equipment leasing,

long-term contracts, inventories, amortization, depreciation, the alternative minimum tax, net

operating losses generally, including changes in method of accounting for these issues, and

accounting periods. (Note that certain issues involving individual retirement accounts (IRAs) are

under the jurisdiction of the Commissioner, TE/GE. See section 4.02 of this revenue procedure).

December 30, 2024

Issues under the

jurisdiction of the

Associate Chief Counsel

(International)

.06 Issues under the jurisdiction of the Associate Chief Counsel (International) include the tax

treatment of nonresident aliens and foreign corporations, withholding of tax on nonresident aliens

and foreign corporations, foreign tax credit, determination of sources of income, income from

sources outside the United States, subpart F questions, domestic international sales corporations

(DISCs), foreign sales corporations (FSCs), exclusions under § 114 for extraterritorial income

(ETI), international boycott determinations, treatment of certain passive foreign investment

companies, income affected by treaty, U.S. possessions, and other matters relating to the activities

of non-U.S. persons within the United States or U.S.-related persons outside the United States,

and changes in method of accounting for these persons.

For the procedures to obtain advance pricing agreements under § 482, see Rev. Proc. 2015-41,

2015-35 I.R.B. 263.

For competent authority procedures related to bilateral and multilateral advance pricing

agreements, see Rev. Proc. 2015-40, 2015-35 I.R.B. 236.

Issues under the

jurisdiction of the

Associate Chief Counsel

(Passthroughs, Trusts and

Estates)

.07 Issues under the jurisdiction of the Associate Chief Counsel (Passthroughs, Trusts and

Estates) include those that involve income taxes of S corporations (except accounting periods and

methods) and certain noncorporate taxpayers (including partnerships, common trust funds, and

trusts), entity classification, estates (excluding § 6166), gifts, and generation-skipping transfer.

Issues under the

jurisdiction of the Associate

Chief Counsel (Procedure

and Administration)

.08 Issues under the jurisdiction of the Associate Chief Counsel (Procedure and Administration)

include those that involve Federal tax procedure and administration, disclosure and privacy law,

reporting and paying taxes (including payment of taxes under § 6166), assessing and collecting

taxes (including interest and penalties), abating, crediting, or refunding overassessments or

overpayments of tax, and filing information returns.

SECTION 4. ON WHAT

ISSUES MUST WRITTEN

ADVICE BE REQUESTED

UNDER DIFFERENT

PROCEDURES?

Issues involving alcohol,

tobacco, and firearms taxes

.01 The procedures for obtaining letter rulings, closing agreements, determination letters,

information letters, and oral advice that apply to Federal alcohol, tobacco, and firearms taxes

under subtitle E of the Code are under the jurisdiction of the Alcohol and Tobacco Tax and Trade

Bureau of the Department of the Treasury.

Certain issues involving

qualified retirement plans,

individual retirement

accounts (IRAs), and

exempt organizations

.02 The procedures for obtaining certain letter rulings, closing agreements, determination

letters, information letters, and oral advice on qualified retirement plans and IRAs that are under

the jurisdiction of the Commissioner, TE/GE, are provided in Rev. Proc. 2025-4, this Bulletin.

Rev. Proc. 2025-4 also includes the procedures for issuing determination letters on the qualified

status of pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans

under §§ 401, 403(a), 409, and 4975(e)(7), and the status for exemption of any related trusts or

custodial accounts under § 501(a). See also Rev. Proc. 2025-5, this Bulletin, for the procedures for

issuing determination letters on the tax-exempt status of organizations under § 501 and § 521, the

foundation status of organizations described in § 501(c)(3) and the foundation status of nonexempt

charitable trusts described in § 4947(a)(1).

For the user fee requirements applicable to requests under the jurisdiction of the Commissioner,

TE/GE, see Section 30 of Rev. Proc. 2025-4, and Section 14 of Rev. Proc. 2025-5.

December 30, 2024

Bulletin No. 2025–1

SECTION 5.

UNDER WHAT

CIRCUMSTANCES

DO THE ASSOCIATE

OFFICES ISSUE LETTER

RULINGS?

In income and gift tax

matters

.01 In income and gift tax matters, an Associate office generally issues a letter ruling on a

proposed transaction or on a completed transaction if the letter ruling request is submitted before

a return containing a tax position on the completed transaction is filed.

An Associate office will not ordinarily issue a letter ruling on a completed transaction if the letter

ruling request is submitted after a return containing a tax position on the completed transaction is

filed. “Not ordinarily” means that unique and compelling reasons must be demonstrated to justify

the issuance of a letter ruling submitted after the return is filed for the year in which the transaction

is completed. The taxpayer must contact the field office having audit jurisdiction over their return

and obtain the field’s consent to the issuance of such a letter ruling. See section 7.05(2) of this

revenue procedure.

Special relief for late S

corporation and related

elections in lieu of letter

ruling process

.02 In lieu of requesting a letter ruling under this revenue procedure, a taxpayer may obtain

relief for certain late S corporation and related elections by following the procedure in Rev. Proc.

2013-30, 2013-36 I.R.B. 173. This procedure is in lieu of the letter ruling process and does not

require payment of any user fee. See section 3.01 of Rev. Proc. 2013-30, and section 15.03(3) of

this revenue procedure.

A § 301.9100 request

for extension of time for

making an election or for

other relief

.03 An Associate office will consider a request for an extension of time for making an

election or other application for relief under § 301.9100-3 of the Treasury Regulations, even

if submitted after the return covering the issue presented in the § 301.9100 request has been

filed, an examination of the return has begun, the issues in the return are being considered

by Appeals or a Federal court, or the liability reflected on the return has been assessed and

subject to collection. Except for certain requests pertaining to applications for recognition of tax

exemption under the jurisdiction of the Commissioner, TE/GE, a § 301.9100 request is a letter

ruling request. Therefore, the § 301.9100 request should be submitted pursuant to this

revenue procedure. However, a § 301.9100 request involving recharacterization of an IRA

(see § 1.408A-5, Q&A-6) should be submitted pursuant to Rev. Proc. 2025-4, this Bulletin. An

election made pursuant to § 301.9100-2 for an automatic extension of time is not a letter ruling

request and does not require payment of any user fee. See § 301.9100-2(d) and section 15.03(1)

of this revenue procedure.

(1) Format of request. A § 301.9100 request (other than an election made pursuant to

§ 301.9100-2 and certain requests pertaining to applications for recognition of tax exemption

under the jurisdiction of the Commissioner, TE/GE which are addressed in Rev. Proc. 2025-5)

must be in the general form of, and meet the general requirements for, a letter ruling request.

These requirements are given in section 7 of this revenue procedure. A § 301.9100 request

must include an affidavit and declaration from the taxpayer and other parties having knowledge or

information about the events that led to the failure to make a valid regulatory election and to the

discovery of the failure. See § 301.9100-3(e)(2) and (e)(3). In addition, a § 301.9100 request must

include the information required by § 301.9100-3(e)(4).

(2) Period of limitation. The filing of a request for relief under § 301.9100 does not suspend

the running of any applicable period of limitation. See § 301.9100-3(d)(2). The Associate office

ordinarily will not issue a § 301.9100 ruling if the period of limitation on assessment under

§ 6501(a) for the taxable year in which an election should have been made, or for any taxable years

that would have been affected by the election had it been timely made, will expire before receipt of

Bulletin No. 2025–1

December 30, 2024

a § 301.9100 letter ruling. See § 301.9100-3(c)(1)(ii). If, however, the taxpayer consents to extend

the period of limitation on assessment under § 6501(c)(4) for the taxable year in which the election

should have been made and for any taxable years that would have been affected by the election

had it been timely made, the Associate office may issue the letter ruling. See § 301.9100-3(d)(2).

Note that the filing of a claim for refund under § 6511 does not extend the period of limitation

on assessment. If § 301.9100-3 relief is granted, the Associate office may require the taxpayer to

consent to an extension of the period of limitation on assessment. See § 301.9100-3(d)(2).

(3) Taxpayer must notify the Associate office if examination of its return begins while

the request is pending. The taxpayer must notify the Associate office if the Service begins an

examination of the taxpayer's return for the taxable year in which an election should have been

made, or for any taxable years that would have been affected by the election had it been timely

made, while a § 301.9100-3 request is pending. This notification must include the name and

telephone number of the examining agent. See § 301.9100-3(e)(4)(i) and section 7.05(1)(b) of this

revenue procedure.

(4) Associate office will notify examination agent, Appeals officer, or attorney of a

§ 301.9100 request if the taxpayer’s return is being examined by a field office or is being

considered by an Appeals office or a Federal court. If the taxpayer's return for the taxable year

in which an election should have been made, or for any taxable years that would have been affected

by the election had it been timely made, is being examined by a field office or considered by an

Appeals office or a Federal court, the Associate office will notify the appropriate examination

agent, Appeals officer, or attorney that a § 301.9100 request has been submitted to the Associate

office. The examination agent, Appeals officer, or attorney is not authorized to deny consideration

of a § 301.9100 request. The letter ruling will be mailed to the taxpayer and a copy will be sent

to the Appeals officer, attorney, or appropriate Service official in the operating division that has

examination jurisdiction over the taxpayer's tax return.

(5) Inclusion of statement required by section 4.04 of Rev. Proc. 2009-41. Eligible entities

requesting a letter ruling because they do not meet all of the eligibility requirements of section

4.01 of Rev. Proc. 2009-41, 2009-39 I.R.B. 439, must include either the following representation

as part of the entity’s request for a letter ruling or an explanation regarding why they do not

qualify to do so: “All required U.S. tax and information returns of the entity (or, if the entity was

not required to file any such returns under the desired classification, then all required U.S. tax and

information returns of each affected person as defined in Section 4.02 of Rev. Proc. 2009-41) were

filed timely or within 6 months of the due date of the respective return (excluding extensions)

as if the entity classification election had been in effect on the requested date. No U.S. tax or

information returns were filed inconsistently with those described in the prior sentence.”

(6) Relief for late classification election. In lieu of requesting a letter ruling under § 301.9100-1

through § 301.9100-3 and this revenue procedure, entities that satisfy the requirements set forth in

section 4.01 of Rev. Proc. 2009-41, 2009-39 I.R.B. 439, may apply for late classification election

relief under Rev. Proc. 2009-41. Requests for such relief are not subject to user fees. See section

3.01 of Rev. Proc. 2009-41 and section 15.03(2) of this revenue procedure.

Determinations under

§ 999(d)

December 30, 2024

.04 As provided in Rev. Proc. 77-9, 1977-1 C.B. 542, the Associate Chief Counsel

(International) issues determinations under § 999(d) that a particular operation of a person, or of a

member of a controlled group (within the meaning of § 993(a)(3)) that includes that person, or a

foreign corporation of which a member of the controlled group is a U.S. shareholder, constitutes

participation in or cooperation with an international boycott. The effect of that determination is to

deny certain benefits of the foreign tax credit and the deferral of earnings of foreign subsidiaries and

domestic international sales corporations (DISCs) to that person. The same principles shall apply

with respect to exclusions under § 114 for exterritorial income (ETI). Requests for determinations

Bulletin No. 2025–1

under Rev. Proc. 77-9 are letter ruling requests and should be submitted to the Associate office

pursuant to this revenue procedure.

In matters involving § 367

.05 Unless the issue is covered by section 6 of this revenue procedure, the Associate Chief

Counsel (International) may issue a letter ruling under § 367 even if the taxpayer does not request

a letter ruling as to the characterization of the transaction under the reorganization provisions of

the Code. The Associate office will determine the § 367 consequences of a transaction but may

indicate in the letter ruling that it expresses no opinion as to the characterization of the transaction

under the reorganization. The Associate office may decline to issue a § 367 ruling in situations

in which the taxpayer inappropriately characterizes the transaction under the reorganization

provisions.

In estate tax matters

.06 In general, the Associate Chief Counsel (Passthroughs, Trusts and Estates) issues letter

rulings on transactions affecting the estate tax on the prospective estate of a living person. The

Associate office will not issue letter rulings for prospective estates on computations of tax,

actuarial factors, or factual matters. With respect to the transactions affecting the estate tax of the

decedent’s estate, generally the Associate office issues letter rulings before the decedent’s estate

tax return is filed.

If the taxpayer is requesting a letter ruling regarding a decedent's estate tax and the estate tax

return is due to be filed before the letter ruling is expected to be issued, the taxpayer should obtain

an extension of time for filing the return and should notify the Associate office branch considering

the letter ruling request that an extension has been obtained.

If the return is filed before the letter ruling is received from the Associate office, the taxpayer

must disclose on the return that a letter ruling has been requested, attach a copy of the pending

letter ruling request to the return, and notify the Associate office that the return has been filed. See

section 7.05(2) of this revenue procedure. The Associate office will make every effort to issue the

letter ruling within 3 months of the date the return was filed.

If the taxpayer requests a letter ruling after the return is filed, but before the return is examined,

the taxpayer must notify the field office having jurisdiction over the return that a letter ruling has

been requested, attach a copy of the pending letter ruling request, and notify the Associate office

that a return has been filed. See section 7.05(2) of this revenue procedure. The Associate office

will make every effort to issue the letter ruling within 3 months of the date the return has been

filed.

If the letter ruling cannot be issued within that 3-month period, the Associate office will notify

the field office having jurisdiction over the return, which may, by memorandum to the Associate

office, grant an additional period for the issuance of the letter ruling.

In matters involving

additional estate tax under

§ 2032A(c)

.07 In matters involving additional estate tax under § 2032A(c), the Associate Chief Counsel

(Passthroughs, Trusts and Estates) issues letter rulings on proposed transactions and on completed

transactions that occurred before the return is filed.

In matters involving

qualified domestic trusts

under § 2056A

.08 In matters involving qualified domestic trusts under § 2056A, the Associate Chief Counsel

(Passthroughs, Trusts and Estates) issues letter rulings on proposed transactions and on completed

transactions that occurred before the return is filed.

In generation-skipping

transfer tax matters

.09 In general, the Associate Chief Counsel (Passthroughs, Trusts and Estates) issues letter

rulings on proposed transactions that affect the generation-skipping transfer tax and on completed

Bulletin No. 2025–1

December 30, 2024

transactions that occurred before the return is filed. In the case of a generation-skipping trust or

trust equivalent, letter rulings are issued either before or after the trust or trust equivalent has been

established.

In employment and excise

tax matters

.10 In employment and excise tax matters, the Associate offices issue letter rulings on proposed

transactions and on completed transactions, if the letter ruling request is submitted before the

return is filed for the year in which the transaction is completed.

Letter ruling requests regarding employment status (employer/employee relationship) from

Federal agencies and instrumentalities or their workers must be submitted to the Internal Revenue

Service as set forth in the current Instructions for Form SS-8, Determination of Worker Status

for Purposes of Federal Employment Taxes and Income Tax Withholding. If the Federal agency

or instrumentality service recipient (the firm) makes the request, the firm will receive any issued

letter ruling. A copy will also be sent to any identified workers. If the worker makes the request

and the firm has been contacted for information, both the worker and the firm will receive any

issued letter ruling. The letter ruling will apply to any individuals engaged by the firm under

substantially similar circumstances. See section 12.04 of this revenue procedure for requests

regarding employment status made by taxpayers other than Federal agencies and instrumentalities

or their workers.

In procedural and

administrative matters

.11 The Associate Chief Counsel (Procedure and Administration) issues letter rulings on matters

arising under the Code and related statutes and regulations that involve the time, place, manner,

and procedures for reporting and paying taxes; or the filing of information returns.

In Indian tribal government

matters

.12 Pursuant to Rev. Proc. 84-37, 1984-1 C.B. 513, as modified by Rev. Proc. 86-17, 1986-1

C.B. 550, and this revenue procedure, the Office of Associate Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment Taxes) issues determinations recognizing a tribal entity

as an Indian tribal government within the meaning of § 7701(a)(40) or as a political subdivision of

an Indian tribal government under § 7871(d) if it determines, after consultation with the Secretary

of the Interior, that the entity satisfies the statutory definition of an Indian tribal government or has

been delegated governmental functions of an Indian tribal government. Requests for determinations

under Rev. Proc. 84-37 are letter ruling requests, and, therefore, should be submitted to the Office

of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes)

pursuant to this revenue procedure.

(1) Definition of Indian tribal government. The term “Indian tribal government” is defined

under § 7701(a)(40) to mean the governing body of any tribe, band, community, village, or group

of Indians, or (if applicable) Alaska Natives, which is determined by the Secretary of the Treasury,

after consultation with the Secretary of the Interior, to exercise governmental functions. Section

7871(d) provides that, for purposes of § 7871(a), a subdivision of an Indian tribal government shall

be treated as a political subdivision of a state if the Secretary of the Treasury determines, after

consultation with the Secretary of the Interior, that the subdivision has been delegated the right to

exercise one or more of the substantial governmental functions of the Indian tribal government.

(2) Inclusion in list of tribal governments. Rev. Proc. 2008-55, 2008-2 C.B. 768, designates

the Indian tribal entities that appear on the current or future lists of federally recognized Indian

tribes published annually by the Department of the Interior, Bureau of Indian Affairs, as Indian

tribal governments that are treated similarly to states for certain Federal tax purposes. Rev. Proc.

84-36, 1984-1 C.B. 510, as modified by Rev. Proc. 86-17, 1986-1 C.B. 550, provides a list of

political subdivisions of Indian tribal governments that are treated as political subdivisions of

states for certain Federal tax purposes. Under Rev. Proc. 84-37, as modified by Rev. Proc. 86-17,

tribal governments or subdivisions recognized under § 7701(a)(40) or § 7871(d) will be included

in the list of recognized tribal government entities in future lists of federally recognized Indian

December 30, 2024

Bulletin No. 2025–1

tribes published annually by the Department of the Interior, Bureau of Indian Affairs, or revised

versions of Rev. Proc. 84-36.

On constructive sales

price under § 4216(b) or

§ 4218(c)

.13 The Associate Chief Counsel (Energy, Credits, and Excise Tax) will issue letter rulings

in all cases on the determination of a constructive sales price under § 4216(b) or § 4218(c) and

in all other cases on prospective transactions if the law or regulations require a determination of

the effect of a proposed transaction for Federal tax purposes. See section 6.14(5) of this revenue

procedure.

In exempt organizations

matters

.14 In exempt organizations matters, the Associate Chief Counsel (Employee Benefits, Exempt

Organizations, and Employment Taxes) generally issues letter rulings on proposed transactions

or on completed transactions if the letter ruling request is submitted before the return is filed for

the year in which the transaction is completed. The Associate Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment Taxes) will not ordinarily issue a letter ruling on a

completed transaction if the letter ruling request is submitted after the return is filed for the year

in which the transaction is completed. “Not ordinarily” means that unique and compelling reasons

must be demonstrated to justify the issuance of a letter ruling submitted after the return is filed for

the year in which the transaction is completed. The taxpayer must contact the field office having

audit jurisdiction over their return and obtain the field’s consent to the issuance of such a letter

ruling.

See Rev. Proc. 2025-5, this Bulletin, for the procedures for issuing determination letters on

issues under the jurisdiction of the Director Exempt Organizations Rulings and Agreements,

including determination letters on the tax-exempt status of organizations under § 501 and § 521,

the foundation status of organizations described in § 501(c)(3), and the foundation status of

nonexempt charitable trusts described in § 4947(a)(1).

In qualified retirement plan

and IRA matters

.15 In qualified retirement plan and IRA matters (other than those listed in Rev. Proc. 20254, this Bulletin), the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and

Employment Taxes) will generally issue letter rulings on proposed transactions and on completed

transactions, if the letter ruling request is submitted before the return is filed for the year in which

the transaction is completed, including those involving:

(1) §§ 72 (other than the computation of the exclusion ratio), 219, 381(c)(11), 402, 403(b)

(except with respect to whether the form of a plan satisfies the requirements of § 403(b) as provided

in Rev. Proc. 2025-4), 404, 408, 408A, 412, 414(e) and (h), 511 through 514, 4971(b) and (g),

4972, 4973, 4974 (other than requests for a waiver under § 4974(d)), 4978, 4979, and 4980;

(2) Waiver of the minimum funding standard (see Rev. Proc. 2004-15, 2004-1 C.B. 490, section

3.04 of which is modified by Rev. Proc. 2025-4);

(3) Whether a plan amendment is reasonable and provides for only de minimis increases in plan

liabilities in accordance with §§ 401(a)(33) and 412(c)(7)(B)(i) of the Code (see Rev. Proc. 79-62,

1979-2 C.B. 576);

(4) With respect to employee stock ownership plans and tax credit employee stock ownership

plans, §§ 409, 1042, 4975(d)(3) and 4975(e)(7). Qualification issues arising under these sections

(as well as under §§ 401-420 generally) are generally within the jurisdiction of Employee Plans

Determinations. However, see Rev. Proc. 2025-3, this Bulletin, section 4.02(12);

(5) Abatement of first tier excise taxes under § 4962;

Bulletin No. 2025–1

December 30, 2024

(6) Relief under § 301.9100-1 that is not related to Roth IRA recharacterizations; and

(7) Grants of extensions of time other than pursuant to § 301.9100-1.

A request to revoke an

election

.16 If a taxpayer is required to file a letter ruling request to obtain consent to revoke an election

made on a return, an Associate office will consider the request, even if an examination of the

return has begun or the issues in the return are being considered by Appeals or a Federal court. The

procedures in this revenue procedure applicable to a § 301.9100 request apply to a letter ruling

request to revoke the election.

Under some circumstances

before the issuance of

a regulation or other

published guidance

.17 In general, the Service will not issue a letter ruling or determination letter on an issue that

it cannot readily resolve before the promulgation of a regulation or other published guidance. See

section 6.09 of this revenue procedure.

However, an Associate office may issue letter rulings under the following conditions:

(1) Answer is clear or is reasonably certain. If the letter ruling request presents an issue for

which the answer seems clear by applying the statute, regulations, and applicable case law to the

facts or for which the answer seems reasonably certain but not entirely free from doubt.

(2) Answer is not reasonably certain. If the letter ruling request presents an issue for which

the answer does not seem reasonably certain, the Associate office may issue the letter ruling, using

its best efforts to arrive at a determination, if it is in the best interest of tax administration.

SECTION 6.

UNDER WHAT

CIRCUMSTANCES DOES

THE SERVICE NOT

ISSUE LETTER RULINGS

OR DETERMINATION

LETTERS?

Ordinarily not if the

request involves an

issue under examination

or consideration or in

litigation

.01 The Service ordinarily does not issue a letter ruling or a determination letter if, at the time

of the request, the identical issue is involved in the taxpayer's return for an earlier period and that

issue—

(1) is being examined by a field office;

(2) is being considered by Appeals;

(3) is pending in litigation in a case involving the taxpayer or a related party;

(4) has been examined by a field office or considered by Appeals and the statutory period of

limitations on assessment or on filing a claim for refund or credit of tax has not expired; or

(5) has been examined by a field office or considered by Appeals and a closing agreement

covering the issue or liability has not been entered into by a field office or by Appeals.

December 30, 2024

Bulletin No. 2025–1

If a return dealing with an issue for a particular year is filed while a request for a letter ruling

on that issue is pending, an Associate office will issue the letter ruling unless it is notified by the

taxpayer or otherwise learns that an examination of that issue or the identical issue on an earlier

year's return has been started by a field office. See section 7.05 of this revenue procedure. In

income and gift tax matters, as well as in qualified retirement plan, IRA, and exempt organizations

matters, even if an examination has begun, an Associate office ordinarily will issue the letter

ruling if the field office agrees by memorandum to the issuance of the letter ruling.

Ordinarily not in certain

areas because of factual

nature of the problem or for

other reasons

.02 The Service ordinarily does not issue letter rulings or determination letters in certain areas

because of the factual nature of the matter involved or for other reasons. Rev. Proc. 2025-3 and

Rev. Proc. 2025-7, this Bulletin, provide a list of these areas. This list is not all-inclusive because

the Service may decline to issue a letter ruling or a determination letter when appropriate in the

interest of sound tax administration, including due to resource constraints, or on other grounds

whenever warranted by the facts or circumstances of a particular case.

Instead of issuing a letter ruling or determination letter, the Service may, when it is considered

appropriate and in the interest of sound tax administration, issue an information letter calling

attention to well-established principles of tax law.

If the Service determines that it is not in the interest of sound tax administration to issue a letter

ruling or determination letter due to resource constraints, it will adopt a consistent approach with

respect to taxpayers that request a ruling on the same issue. The Service will also consider adding

the issue to the no rule list at the first opportunity. See sections 2.01 and 3.02 of Rev. Proc. 2025-3.

Ordinarily not on part of

an integrated transaction

.03 General rule. An Associate office ordinarily will not issue a letter ruling on only part of an

integrated transaction. If a part of a transaction falls under a no-rule area, a letter ruling on other

parts of the transaction may be issued. Before preparing the letter ruling request, a taxpayer should

call a branch having jurisdiction for the matters on which the taxpayer is seeking a letter ruling to

discuss whether the Associate office will issue a letter ruling on part of the transaction.

Ordinarily not on which of

two entities is a common

law employer

.04 The Service ordinarily does not issue a letter ruling or a determination letter on which of two

entities, under common law rules applicable in determining the employer-employee relationship,

is the employer, when one entity is treating the worker as an employee.

Ordinarily not to business

associations or groups

.05 The Service ordinarily does not issue letter rulings or determination letters to business,

trade, or industrial associations or to similar groups concerning the application of the tax laws

to members of the group. Groups and associations, however, may submit suggestions of generic

issues that could be appropriately addressed in revenue rulings. See Rev. Proc. 89-14, 1989-1

C.B. 814, which states the objectives of, and standards for, the publication of revenue rulings and

revenue procedures in the Internal Revenue Bulletin. See also Rev. Proc. 2016-19, 2016-13 I.R.B.

497, which describes procedures for taxpayers and other entities to submit issues for consideration

under the Service’s Industry Issue Resolution (IIR) Program.

The Service may issue letter rulings or determination letters to groups or associations on their

own tax status or liability if the request meets the requirements of this revenue procedure.

Ordinarily not where the

request does not address

the tax status, liability, or

reporting obligations of the

requester

Bulletin No. 2025–1

.06 The Service ordinarily does not issue letter rulings or determination letters regarding the

tax consequences of a transaction for taxpayers who are not directly involved in the request if

the requested letter ruling or determination letter would not address the tax status, liability, or

reporting obligations of the requester. For example, a taxpayer may not request a letter ruling

relating to the tax consequences of a transaction to a customer or client, if the tax status, liability,

or reporting obligations of the taxpayer would not be addressed in the ruling, because the customer

December 30, 2024

or client is not directly involved in the letter ruling request. The tax liability of each shareholder is,

however, directly involved in a letter ruling on the reorganization of a corporation. Accordingly,

a corporate taxpayer could request a letter ruling that solely addressed the tax consequences to its

shareholders of a proposed reorganization.

Rev. Proc. 96-16, 1996-1 C.B. 630, sets forth rules for letter ruling requests involving taxexempt state and local government obligations.

Ordinarily not to foreign

governments

.07 The Service ordinarily does not issue letter rulings or determination letters to foreign

governments or their political subdivisions about the U.S. tax effects of their laws. The Associate

offices also do not issue letter rulings on the effect of a tax treaty on the tax laws of a treaty country

for purposes of determining the tax of the treaty country. See section 13.02 of Rev. Proc. 201540, 2015-35 I.R.B. 236. Treaty partners can continue to address matters such as these under the

provisions of the applicable tax treaty. In addition, the Associate offices may issue letter rulings to

foreign governments or their political subdivisions on their own tax status or liability under U.S.

law if the request meets the requirements of this revenue procedure.

Ordinarily not on Federal

tax consequences of

proposed legislation

.08 The Associate offices ordinarily do not issue letter rulings on a matter involving the Federal

tax consequences of any proposed Federal, state, local, municipal, or foreign legislation. The

Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment

Taxes) may issue letter rulings regarding the effect of proposed state, local, or municipal legislation

upon an eligible deferred compensation plan under § 457(b) provided that the letter ruling request

relating to the plan complies with the other requirements of this revenue procedure. The Associate

offices also may provide general information in response to an inquiry.

Ordinarily not before

issuance of a regulation or

other published guidance

.09 Generally, the Service will not issue a letter ruling or a determination letter if the request

presents an issue that cannot be readily resolved before a regulation or any other published

guidance is issued. When the Service has closed a regulation project or any other published

guidance project that might have answered the issue or decided not to open a regulation project or

any other published guidance project, the Associate offices may consider all letter ruling requests

unless the issue is covered by section 6 of this revenue procedure, Rev. Proc. 2025-3, or Rev. Proc.

2025-7, this Bulletin.

Not on frivolous issues

.10 The Service will not issue a letter ruling or a determination letter on frivolous issues. A

"frivolous issue" is one without basis in fact or law or one that asserts a position that courts have

held frivolous or groundless. Examples of frivolous or groundless issues include, but are not

limited to:

(1) frivolous "constitutional" claims, such as claims that the requirement to file tax returns and

pay taxes constitutes an unreasonable search barred by the Fourth Amendment, violates Fifth and

Fourteenth Amendment protections of due process, violates Thirteenth Amendment protections

against involuntary servitude, or is unenforceable because the Sixteenth Amendment does not

authorize nonapportioned direct taxes or was never ratified;

(2) claims that income taxes are voluntary, that the term “income” is not defined in the Internal

Revenue Code, or that preparation and filing of Federal income tax returns violates the Paperwork

Reduction Act;

(3) claims that tax may be imposed only on coins minted under a gold or silver standard or that

receipt of Federal Reserve Notes does not cause an accretion to wealth;

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Bulletin No. 2025–1

(4) claims that a person’s income is not taxable because he or she falls within a class entitled

to "reparation claims" or an extra-statutory class of individuals exempt from tax, e.g., "free-born"

individuals;

(5) claims that a taxpayer can refuse to pay taxes on the basis of opposition to certain

Governmental expenditures;

(6) claims that taxes apply only to Federal employees; only to residents of Puerto Rico, Guam,

the U.S. Virgin Islands, the District of Columbia, or "Federal enclaves”; or that §§ 861 through

865 or any other provision of the Code imposes taxes on U.S. citizens and residents only on

income derived from foreign based activities;

(7) claims that wages or personal service income are “not income," are "nontaxable receipts,"

or are a “nontaxable exchange for labor”;

(8) claims that income tax withholding by an employer on wages is optional; or

(9) other claims that the courts have characterized as frivolous or groundless.

Additional examples of frivolous or groundless issues may be found in IRS publications and

other guidance (including, but not limited to, Notice 2010-33, Frivolous Positions, and I.R.M.

Exhibit 25.25.10-1, Frivolous Arguments).

No “comfort” letter rulings

.11 Except with respect to issues under §§ 332, 351, 355, 368, 1036, and related operative

provisions, a letter ruling will not be issued with respect to an issue that is clearly and adequately

addressed by a statute, regulation, or decision of a court, revenue rulings, revenue procedures,

notice, or other authority published in the Internal Revenue Bulletin (Comfort Ruling). However,

an Associate Office may, in its discretion, issue a Comfort Ruling if the Associate office is

otherwise issuing a letter ruling to the taxpayer on another issue arising in the same transaction.

Not on alternative plans or

hypothetical situations

.12 The Service will not issue a letter ruling or a determination letter on alternative plans of

proposed transactions or on hypothetical situations.

Not on property conversion

after return filed

.13 An Associate office will not issue a letter ruling on the replacement of involuntarily

converted property, whether or not the property has been replaced, if the taxpayer has already

filed a Federal tax return for the first taxable year in which any of the gain was realized from the

converted property. A Director may issue a determination letter in this case. See section 12.01 of

this revenue procedure.

Circumstances under which

determination letters are

not issued by a Director

.14 A Director will not issue a determination letter if—

(1) the taxpayer has directed a similar inquiry to an Associate office;

(2) the same issue, involving the same taxpayer or a related party, is pending in a case in

litigation or before Appeals;

(3) the request involves an industry-wide problem;

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December 30, 2024

(4) the specific employment tax question at issue in the request has been, or is being, considered

by the Central Office of the Social Security Administration or the Railroad Retirement Board for

the same taxpayer or a related party; or

(5) the request is for a determination of constructive sales price under § 4216(b) or § 4218(c),

which deal with special provisions applicable to the manufacturers excise tax. The Associate

Chief Counsel (Energy, Credits, and Excise Tax) will, in certain circumstances, issue letter rulings

in this area. See section 5.13 of this revenue procedure.

SECTION 7. WHAT

ARE THE GENERAL

INSTRUCTIONS

FOR REQUESTING

LETTER RULINGS

AND DETERMINATION

LETTERS?

This section provides the general instructions for requesting letter rulings and determination

letters. See section 9 of this revenue procedure for the specific and additional procedures for

requesting a change in method of accounting.

Requests for letter rulings, closing agreements, and determination letters require the payment of

the applicable user fee listed in Appendix A of this revenue procedure. Certain changes in method

of accounting under the automatic change request procedures (see section 9.01(1) of this revenue

procedure) and certain changes in accounting periods made under automatic change request

procedures do not require payment of a user fee (see Appendix F of this revenue procedure). For

additional user fee requirements, see section 15 of this revenue procedure.

Specific and additional instructions also apply to requests for letter rulings and determination

letters on certain matters. Those matters are listed in Appendix F of this revenue procedure with a

reference (usually to another revenue procedure) where more information can be obtained.

Documents and information

required in all requests

Facts

.01

(1) Complete statement of facts and other information. Each request for a letter ruling or

a determination letter must contain a complete statement of all facts relating to the transaction.

These facts include—

(a) names, taxpayer identification numbers, addresses, telephone numbers, and other contact

information as appropriate (such as fax numbers or email addresses of any party requesting to

communicate with the Service in such a form, see section 7.02(5) of this revenue procedure

(requiring the fax number of the taxpayer or its representative to receive the PLR electronically) of

all interested parties (the term "all interested parties" does not include all shareholders of a widely

held corporation requesting a letter ruling relating to a reorganization or all employees where a

large number may be involved);

(b) the annual accounting period, and the overall method of accounting (cash or accrual) for

maintaining the accounting books and filing the Federal income tax return, of all interested parties;

(d) a complete statement of the business reasons for the transaction;

(e) a detailed description of the transaction; and

(f) all other facts relating to the transaction or to the taxpayer’s requested tax treatment thereof.

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Bulletin No. 2025–1

Documents and foreign

laws

(2) Copies of all contracts, wills, deeds, agreements, instruments, other documents

pertinent to the transaction, and foreign laws.

(a) Documents. True copies of all contracts, wills, deeds, agreements, instruments, trust

documents, proposed disclaimers, and other documents pertinent to the transactions must be

submitted with the request. But see section 3.02 of Rev. Proc. 2017-52, 2017-41 I.R.B. 283

(amplified and modified by Rev. Proc. 2024-24, 2024-21 I.R.B. 1214), for requirements relating

to ruling requests under § 355.

If the request concerns a corporate distribution, reorganization, or similar transaction, the

corporate balance sheet and profit and loss statement should also be submitted. See section 3.02

of Rev. Proc. 2017-52 (amplified and modified by Rev. Proc. 2024-24) for requirements relating

to ruling requests under § 355. If the request relates to a prospective transaction, the most recent

balance sheet and profit and loss statement should be submitted. See section 3.02 of Rev. Proc.

2017-52 (amplified and modified by Rev. Proc. 2024-24) for requirements relating to ruling

requests under § 355.

If any document, including any balance sheet and profit and loss statement, is in a language

other than English, the taxpayer must also submit a certified English translation of the document,

along with a true copy of the document. For guidelines on the acceptability of such documents,

see paragraph (c) of this section 7.01(2).

Each document other than the request should be labeled and attached to the request in alphabetical

sequence. Original documents such as contracts, wills, etc., should not be submitted because

they become part of the Service’s file and will not be returned.

(b) Foreign laws. The taxpayer must submit with the request a copy of the relevant parts of

all foreign laws, including statutes, regulations, administrative pronouncements, and any other

relevant legal authority. The documents submitted must be in the official language of the country

involved and must be copied from an official publication of the foreign government or another

widely available and generally accepted publication. If English is not the official language of the

country involved, the taxpayer must also submit a copy of an English language version of the

relevant parts of all foreign laws. This translation must be: (i) from an official publication of the

foreign government or another widely available, generally accepted publication; or (ii) a certified

English translation submitted in accordance with paragraph (c) of this section 7.01(2).

The taxpayer must identify the title and date of publication, including updates, of any widely

available and generally accepted publication that the taxpayer (or the taxpayer's qualified

translator) uses as a source for the relevant parts of the foreign law.

English and certified English translations of documents and laws in a language other than

English. The taxpayer must submit with the request an accurate and complete certified English

translation of the relevant parts of all contracts, wills, deeds, agreements, instruments, trust

documents, proposed disclaimers, and other documents pertinent to the transaction that are in a

language other than English. If the taxpayer chooses to submit certified English translations of

foreign laws, those translations must be based on an official publication of the foreign government

or another widely available and generally accepted publication. In either case, the translation

must be that of a qualified translator and must be attested to by the translator. The attestation

must contain: (i) a statement that the translation submitted is a true and accurate translation of the

foreign language document or law; (ii) a statement as to the attestant's qualifications as a translator

Bulletin No. 2025–1

December 30, 2024

and as to that attestant's qualifications and knowledge regarding tax matters or foreign law if the

law is not a tax law; and (iii) the attestant's name and address.

Analysis of material facts

(3) Analysis of material facts. The request must be accompanied by an analysis of facts and

their bearing on the issue or issues. If documents attached to a request contain material facts, they

must be included in the taxpayer's analysis of facts in the request rather than merely incorporated

by reference.

Same issue in any return

and whether return is

under examination, before

Appeals, before a Federal

court, or being considered

by the Pension Benefit

Guaranty Corporation, by

the Department of Labor,

or by the Department of

Health and Human Services

(4) Statement regarding whether same issue is presented in any return and additional

information required for § 301.9100 requests. The request must state whether, to the best of

the knowledge of both the taxpayer and the taxpayer's representatives, the same issue is presented

in any return of the taxpayer, a related party within the meaning of § 267(b) or § 707(b)(1), or

a member of an affiliated group of which the taxpayer is also a member within the meaning of

§ 1504, or of any predecessor.

The request must also state whether, to the best of the knowledge of both the taxpayer and the

taxpayer’s representatives, any return on which the same issue is presented(a) is currently under examination, before Appeals, or before a Federal court;

(b) was previously under examination, before Appeals, or before a Federal court;

Corporation or the Department of Labor; or

(d) in health care matters, is being considered by the Department of Labor or the Department

of Health and Human Services.

That the same issue is merely presented in a return does not preclude the Service from issuing a

ruling, but the Service will not ordinarily issue a ruling if, at the time of the request, the identical issue

is under examination or consideration or in litigation. See section 6.01 of this revenue procedure.

A limited exception to the above rule is made for a § 301.9100 request. See section 5.03 of this

revenue procedure. If a § 301.9100 request involves a tax year that is currently under examination,

before Appeals, or before a Federal court, the taxpayer must notify the Service, as outlined above.

This notification must include the name and telephone number of the examining agent or Appeals

officer.

Same or similar issue

in a request previously

submitted or currently

pending

(5) Statement regarding whether same or similar issue was previously ruled on or whether

a request involving it was submitted or is currently pending. The request must state whether,

to the best of the knowledge of both the taxpayer and the taxpayer's representatives—

(a) the Service previously ruled on the same or similar issue for the taxpayer, a related party

within the meaning of § 267(b) or § 707(b)(1), or a member of an affiliated group of which the

taxpayer is also a member within the meaning of § 1504, or for a predecessor;

(b) the taxpayer, a related party, a predecessor, or any of their representatives previously

submitted a request (including an application for change in method of accounting) involving the

same or similar issue but no letter ruling or determination letter was issued;

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Bulletin No. 2025–1

an application for change in method of accounting) involving the same or similar issue that is

currently pending with the Service;

(d) at the same time as this request, the taxpayer or a related party is presently submitting

another request (including an application for change in method of accounting) involving the same

or similar issue; or

(e) the taxpayer or a related party had, or has scheduled, a pre-submission conference involving

the same or similar issue.

If the statement is affirmative for (a), (b), (c), (d), or (e) of this section 7.01(5), the statement

must give the date the request was submitted, the date the request was withdrawn or ruled on, if

applicable, and other details of the Service's consideration of the issue.

Interpretation of a

substantive provision of an

income or estate tax treaty

(6) Statement regarding interpretation of a substantive provision of an income or estate

tax treaty. If the request involves the interpretation of a substantive provision of an income or

estate tax treaty, the request must state whether—

(a) the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue

for the taxpayer, a related party within the meaning of § 267(b) or § 707(b)(1), or a member of an

affiliated group of which the taxpayer is also a member within the meaning of § 1504, or for any

predecessor;

(b) the same or similar issue for the taxpayer, a related party, or any predecessor is being

examined or has been settled by the tax authority of the treaty jurisdiction or is otherwise the

subject of a closing agreement in that jurisdiction; and

considered by the competent authority of the treaty jurisdiction.

Interpretation of a

transaction involving a

party in a foreign country

(7) Statement regarding involvement of a transactional party located in a foreign country.

If the request involves a transaction between a taxpayer and a related party and either the taxpayer

or the related party is located in a foreign country, the request must state whether the ruling

potentially relates to any one of these categories—

(a) Preferential Regime, defined as one that meets the following three requirements: (1) the

regime relates to business taxation of income from geographically mobile activities (such as

financial and other service activities, including the provision of intangibles); (2) the regime offers

a form of tax preference, such as a reduction in the rate of tax or tax base compared to general

principles of U.S. taxation; and (3) the regime imposes no or low effective tax rates on income

from geographically mobile, financial, and other service activities;

(b) Transfer Pricing, meaning the letter ruling covers transfer pricing or the application of

transfer pricing principles under § 482 and the regulations thereunder;

to the taxpayer’s taxable profit that is not directly reflected in its financial accounts. Examples

include excess profits rulings or informal capital rulings that provide an adjustment that reduces

taxable profits;

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December 30, 2024

(d) Treaty Permanent Establishment, meaning the letter ruling determines the existence or

absence of a permanent establishment under an income tax treaty or provides how much profit

will be attributed to a permanent establishment;

(e) Related Party Conduit, meaning the letter ruling covers the cross-border flow of funds

or income through a U.S. entity that is a conduit under common law principles or Treas. Reg.

§ 1.881-3, whether those funds or income flow to another country directly or indirectly.

Letter from Bureau of

Indian Affairs relating

to certain letter ruling

requests

(8) Letter from Bureau of Indian Affairs relating to a letter ruling request for recognition

of Indian tribal government status or status as a political subdivision of an Indian tribal

government. To facilitate prompt action on a letter ruling request for recognition of Indian tribal

government status or status as a political subdivision of an Indian tribal government, the taxpayer

must submit with the letter ruling request a letter from the Department of the Interior, Bureau of

Indian Affairs (BIA), verifying that the tribe is recognized by BIA as an Indian tribe and that the

tribal government exercises governmental functions or that the political subdivision of the Indian

tribal government has been delegated substantial governmental functions. A letter ruling request

that does not contain this letter from BIA cannot be resolved until the Service obtains a letter from

BIA regarding the tribe’s status.

The taxpayer should send a request to verify tribal status to the following address:

Branch of General Indian Legal Activity

Division of Indian Affairs

Office of the Solicitor

U.S. Department of the Interior

1849 C Street, NW

Washington, DC 20240

Statement of authorities

supporting taxpayer’s views

(9) Statement of supporting authorities. If the taxpayer advocates a particular conclusion,

the taxpayer must include an explanation of the grounds for that conclusion and the relevant

authorities to support it. Even if the taxpayer is not advocating a particular tax treatment of a

proposed transaction, the taxpayer must furnish views on the tax results of the proposed transaction

and a statement of relevant authorities to support those views.

In all events, the request must include a statement of whether the law in connection with the

request is uncertain and whether the issue is adequately addressed by relevant authorities.

Statement of authorities

contrary to taxpayer’s

views

December 30, 2024

(10) Statement of contrary authorities. To avoid a delay in the ruling process, contrary

authorities should be brought to the attention of the Service at the earliest possible opportunity. If

there are significant contrary authorities, it is usually helpful to discuss them in a pre-submission

conference prior to submitting the ruling request. See section 10.07 of this revenue procedure

regarding pre-submission conferences. The taxpayer is strongly encouraged to inform the Service

about, and discuss the implications of, any authority believed to be contrary to the position

advanced, such as statutes, tax treaties, court decisions, regulations, notices, revenue rulings,

revenue procedures, or announcements. If the taxpayer determines that there are no contrary

authorities, a statement in the request to this effect should be included. If the taxpayer does not

furnish either contrary authorities or a statement that none exist, the Service in complex cases

or those presenting difficult or novel issues may request submission of contrary authorities or a

statement that none exist. Failure to comply with this request may result in the Service's refusal to

issue a letter ruling or determination letter.

Bulletin No. 2025–1

The taxpayer’s identification of and discussion of contrary authorities will generally enable

Service personnel to more quickly understand the issue and relevant authorities. Having this

information should make research more efficient and lead to earlier action by the Service. If the

taxpayer does not disclose and distinguish significant contrary authorities, the Service may need

to request additional information, which will delay action on the request.

Statement identifying

pending legislation

(11) Statement identifying pending legislation. When filing the request, the taxpayer must

identify any pending legislation that may affect the proposed transaction. In addition, the taxpayer

must notify the Service if any such legislation is introduced after the request is filed but before a

letter ruling or determination letter is issued.

Deletion statement required

by § 6110

(12) Statement identifying information to be deleted from the public inspection copy of

letter ruling or determination letter. The text of letter rulings and determination letters is open

to public inspection under § 6110. The Service makes deletions from the text before it is made

available for inspection. To help the Service make the deletions required by § 6110(c), a request

for a letter ruling or determination letter must be accompanied by a statement indicating the

deletions desired, except where a letter ruling or determination letter is open to public inspection

under § 6104. If the deletion statement is not submitted with the request, the Service will notify

the taxpayer that the request will be closed if the Service does not receive the deletion statement

within 21 calendar days. See section 8.05 of this revenue procedure.

Section 6110(l)(1) provides that § 6110 disclosure provisions do not apply to any matter to

which § 6104 applies. Therefore, letter rulings, determination letters, technical advice memoranda,

and related background file documents dealing with the following matters (covered by § 6104) are

not subject to § 6110 disclosure provisions—

(i) An approved application for exemption under § 501(a) as an organization described in

§ 501(c) or (d), or notice of status as a political organization under § 527, together with any papers

submitted in support of such application or notice;

(ii) An application for exemption under § 501(a) with respect to the qualification of a pension,

profit sharing or stock bonus plan, or an individual retirement account described in § 408 or

§ 408A, or any application for exemption under § 501(a) by an organization forming part of such

a plan or account;

(iii) Any document issued by the Internal Revenue Service in which the qualification or exempt

status of a plan or account is granted, denied, or revoked or the portion of any document in which

technical advice with respect thereto is given;

(iv) Any application filed and any document issued by the Internal Revenue Service with respect

to the qualification or status of master and prototype retirement plans; and

(v) The portion of any document issued by the Internal Revenue Service with respect to the

qualification or exempt status of a retirement plan or account of a proposed transaction by such

plan or account.

(a) Format of deletion statement. A taxpayer who wants only names, addresses, and

identifying numbers to be deleted should state this in the deletion statement. If the taxpayer wants

more information deleted, the deletion statement must be accompanied by a copy of the request

and supporting documents on which the taxpayer should bracket the material to be deleted. The

deletion statement must include the statutory basis under § 6110(c) for each proposed deletion.

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December 30, 2024

If the taxpayer decides to ask for additional deletions before the letter ruling or determination

letter is issued, the taxpayer may submit additional deletion statements.

(b) Location of deletion statement. The deletion statement must be made in a separate

document from the request for a letter ruling or determination letter and must be included with

the request.

taxpayer's authorized representative. See section 7.01(13) of this revenue procedure for signature

requirements.

(d) Additional information. The taxpayer should follow the same procedures of this section

7.01(12) to propose deletions from any additional information submitted after the initial request.

An additional deletion statement is not required with each submission of additional information

if the taxpayer's initial deletion statement requests that only names, addresses, and identifying

numbers are to be deleted and the taxpayer wants only the same information deleted from the

additional information.

(e) Taxpayer may protest deletions not made. After receiving from the Service the notice

under § 6110(f)(1) of intention to disclose the letter ruling or determination letter (including a copy

of the version proposed to be open to public inspection and notation of third-party communications

under § 6110(d)), the taxpayer may protest the disclosure of certain information in the letter ruling

or determination letter. The taxpayer must send a written statement to the Service office indicated

on the notice of intention to disclose, within 20 calendar days of the date the notice of intention to

disclose is mailed to the taxpayer. The statement must identify those deletions that the Service has

not made and that the taxpayer believes should have been made. The taxpayer must also submit a

copy of the version of the letter ruling or determination letter and bracket the proposed deletions

that have not been made by the Service. Generally, the Service will not consider deleting any

material that the taxpayer did not propose to be deleted before the letter ruling or determination

letter was issued.

Within 20 calendar days after the Service receives the response to the notice under § 6110(f)

(1), the Service will mail to the taxpayer its final administrative conclusion regarding the deletions

to be made. The taxpayer does not have the right to a conference to resolve any disagreements

concerning material to be deleted from the text of the letter ruling or determination letter. These

matters may, however, be taken up at any conference that is otherwise scheduled regarding the

request.

(f) Taxpayer may request delay of public inspection. After receiving the notice of intention

to disclose under § 6110(f)(1), but no later than 60 calendar days after the date of the notice, the

taxpayer may send a written request for delay of public inspection under either § 6110(g)(3) or

(4). The request for delay must be sent to the Service office indicated on the notice of intention

to disclose. A request for delay under § 6110(g)(3) must contain the date on which it is expected

that the underlying transaction will be completed. The request for delay under § 6110(g)(4) must

contain a statement from which the Commissioner of Internal Revenue may determine whether

there are good reasons for the continued delay.

Signature on request

December 30, 2024

(13) Signature by taxpayer or authorized representative. The request for a letter ruling

or determination letter must be signed and dated by the taxpayer or the taxpayer's authorized

representative.

Bulletin No. 2025–1

(a) Paper submissions. The original of a request for a letter ruling or determination letter

submitted on paper should generally include a wet-ink signature. If it is not possible to physically

sign the request, the Service will accept an image of a signature or digital signature transmitted

separately according to the electronic submission procedures for such a request.

(b) Encrypted email attachment. A request for a letter ruling or determination letter submitted

by encrypted email attachment must include an image of a signature (scanned or photographed)

or a digital signature that uses encryption techniques to provide proof of original and unmodified

documentation. The Service will accept electronic signatures in one of the following formats: tiff,

jpg, jpeg, pdf, Microsoft Office suite, or Zip.

electronic facsimile must be physically signed with a handwritten signature prior to faxing.

See section 7.04 of this revenue procedure for submission procedures.

Authorized representatives

(14) Authorized representatives.

(a) To sign the request or to appear before the Service in connection with the request, the

taxpayer's authorized representative must be one of the following (for rules on who may practice

before the Service, see Treasury Department Circular No. 230, 31 C.F.R. part 10):

(i) An attorney who is a member in good standing of the bar of the highest court of any state,

possession, territory, commonwealth, or the District of Columbia and who is not currently

under suspension or disbarment from practice before the Service. He or she must file a written

declaration with the Service showing current qualification as an attorney and current authorization

to represent the taxpayer;

(ii) A certified public accountant who is duly qualified to practice in any state, possession,

territory, commonwealth, or the District of Columbia and who is not currently under suspension

or disbarment from practice before the Service. He or she must file a written declaration with the

Service showing current qualification as a certified public accountant and current authorization to

represent the taxpayer;

(iii) An enrolled agent (a person who is currently enrolled as an agent to practice before the

Service) who is not currently under suspension or disbarment from practice before the Service.

He or she must file a written declaration with the Service showing current enrollment and current

authorization to represent the taxpayer. The enrollment number must be included in the declaration;

(iv) An enrolled actuary (an individual currently enrolled as an actuary by the Joint Board for

the Enrollment of Actuaries pursuant to 29 U.S.C. § 1242) who is not currently under suspension

or disbarment from practice before the Service. He or she must file a written declaration with the

Service showing current qualification as an enrolled actuary and current authorization to represent

the taxpayer. Practice before the Service as an enrolled actuary is limited to representation with

respect to issues involving §§ 401, 403(a), 404, 405, 412, 413, 414, 419, 419A, 420, 4971, 4972,

4976, 4980, 6057, 6058, 6059, 6652(d), 6652(e), 6692, and 7805(b); former § 405; and 29 U.S.C.

§ 1083;

(v) An enrolled retirement plan agent (an individual currently enrolled as a retirement plan

agent) who is not currently under suspension or disbarment from practice before the Service.

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December 30, 2024

He or she must file a written declaration with the Service showing current qualification as an

enrolled retirement plan agent and current authorization to represent the taxpayer. Practice before

the Service as an enrolled retirement plan agent is limited to representation with respect to issues

involving the following programs: Employee Plans Determination Letter program; Employee

Plans Compliance Resolution System; and Employee Plans Pre-approved program. Enrolled

retirement plan agents also are generally permitted to represent taxpayers with respect to IRS

forms under the 5300 and 5500 series, which are filed by retirement plans and plans sponsors, but

not with respect to actuarial forms and schedules; or

(vi) Any other person, including a foreign representative, who has received a "Letter of

Authorization" from the Director of the Office of Professional Responsibility under section

10.7(d) of Treasury Department Circular No. 230. A person may make a written request for a

"Letter of Authorization" to: Office of Professional Responsibility, SE:OPR, Internal Revenue

Service, 1111 Constitution Ave., NW, Washington, DC 20224. Section 10.7(d) of Circular No.

230 authorizes the Commissioner to allow an individual who is not otherwise eligible to practice

before the Service to represent another person in a particular matter.

(b) A regular full-time employee representing his or her employer; a general partner representing

his or her partnership; a bona fide officer representing his or her corporation, association, or

organized group; a trustee, receiver, guardian, personal representative, administrator, executor,

or regular full-time employee representing a trust, receivership, guardianship, or estate; or an

individual representing an immediate family member may sign the request or appear before the

Service in connection with the request if the individual provides current authorization to represent

the taxpayer. See section 7.01(15) of this revenue procedure.

A taxpayer may be required to file a Form 8821, Tax Information Authorization, for certain

employees not authorized to represent the taxpayer to receive taxpayer information from the Service.

sign the request, appear before the Service, or represent a taxpayer in connection with a request

for a letter ruling or a determination letter. See section 10.3(f)(3) of Treasury Department Circular

No. 230.

(d) A foreign representative, other than a person referred to in subsections (a) and (b) of

this section, is not authorized to practice before the Service within the United States and must

withdraw from representing a taxpayer in a request for a letter ruling or a determination letter. In

this situation, the nonresident alien or foreign entity must submit the request for a letter ruling or

a determination letter on the individual's or the entity's own behalf or through a person referred to

in subsections (a) and (b) of this section.

Power of Attorney

and Declaration of

Representative

(15) Power of Attorney and Declaration of Representative. Form 2848, Power of Attorney

and Declaration of Representative, should be used to provide the representative's authority (Part

I of Form 2848, Power of Attorney) and the representative's qualification (Part II of Form 2848,

Declaration of Representative). The name of the person signing Part I of Form 2848 should be

typed or printed on this form. A Form 2848 executed for the purpose of a request for a letter

ruling or determination letter should reflect that it is for a “specific use” that is not recorded on the

Centralized Authorization File (CAF) and should only be submitted in conjunction with such a

request as provided in this revenue procedure (that is, it should not be submitted to the Service by

any other method listed in the Instructions for Form 2848).

A Form 2848 must be signed by both the taxpayer (or the person signing on the taxpayer’s

behalf) and the representative in a manner consistent with section 7.01(13) of this revenue

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Bulletin No. 2025–1

procedure. If the Form 2848 is remotely signed by the taxpayer (or the person signing on

the taxpayer’s behalf) using a permissible electronic or digital method, the representative

should follow the necessary steps to verify the taxpayer’s identity provided in the Electronic

Signatures section of the Instructions for Form 2848, but is not required to provide a separate

attestation unless requested by the Service. If the Form 2848 is signed by the taxpayer (or the

person signing on the taxpayer’s behalf) using a physical, wet-ink signature, a submission may

include a copy or scanned version of the Form 2848 as long as its authenticity is not reasonably

disputed.

For additional information regarding the power of attorney form, see section 7.02(2) of this

revenue procedure.

The taxpayer’s authorized representative, whether or not enrolled, must comply with Treasury

Department Circular No. 230, which provides the rules for practice before the Service. In situations

where the Service believes that the taxpayer’s representative is not in compliance with Circular

230, the Service will bring the matter to the attention of the Office of Professional Responsibility.

Penalties of perjury

statement

(16) Penalties of perjury statement.

(a) Format of penalties of perjury statement. A request for a letter ruling or determination

letter and any change in the request submitted at a later time must be accompanied by the

following declaration: "Under penalties of perjury, I declare that I have examined [Insert,

as appropriate: this request or this modification to the request], including accompanying

documents, and, to the best of my knowledge and belief, [Insert, as appropriate: the request

or the modification] contains all the relevant facts relating to the request, and such facts are

true, correct, and complete."

See section 8.05(4) of this revenue procedure for the penalties of perjury statement applicable

for submissions of additional information.

(b) Signature by taxpayer. The declaration must be signed and dated by the taxpayer, not the

taxpayer's representative, in a manner consistent with section 7.01(13) of this revenue procedure.

The person who signs for a corporate taxpayer must be an officer of the corporate taxpayer who

has personal knowledge of the facts and whose duties are not limited to obtaining a letter ruling or

determination letter from the Service. If the corporate taxpayer is a member of an affiliated group

filing consolidated returns, a penalties of perjury statement must also be signed and submitted by

an officer of the common parent of the group.

The person signing for a trust, a state law partnership, or a limited liability company must be,

respectively, a trustee, general partner, or member-manager who has personal knowledge of the

facts.

Sample format for a letter

ruling request

(17) Sample format for a letter ruling request. To assist a taxpayer or the taxpayer's

representative in preparing a letter ruling request, a sample format for a letter ruling request is

provided in Appendix B of this revenue procedure. This format is not required to be used.

Checklist

(18) Checklist for letter ruling requests. An Associate office will be able to respond more

quickly to a taxpayer's letter ruling request if the request is carefully prepared and complete. The

checklist in Appendix C of this revenue procedure is designed to assist taxpayers in preparing a

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December 30, 2024

request by reminding them of the essential information and documents to be furnished with the

request. The checklist in Appendix C must be completed to the extent required by the instructions

in the checklist, signed and dated by the taxpayer or the taxpayer's representative, and included

with the letter ruling request. If the checklist in Appendix C is not received, a branch representative

will ask the taxpayer or the taxpayer's representative to submit the checklist; this may delay action

on the letter ruling request.

For letter ruling requests on certain matters, specific checklists supplement the checklist

in Appendix C. These checklists are in Appendix D, Appendix E, or are listed in section 1 of

Appendix F of this revenue procedure and must also be completed and included with the letter

ruling request along with the checklist in Appendix C.

Taxpayers can obtain copies of the checklists by accessing this revenue procedure in Internal

Revenue Bulletin 2025-1, available at www.irs.gov/irb. A copy of this checklist may be used.

Additional procedural

information required with

request

Multiple issues

.02

(1) To request separate letter rulings for multiple issues in a single situation. If more than

one issue is presented in a request for a letter ruling, the Associate office generally will issue

a single letter ruling covering all the issues. If the taxpayer requests separate letter rulings on

any of the issues (because, for example, one letter ruling is needed sooner than another), the

Associate office usually will comply with the request unless doing so is not feasible or not in

the best interest of the Service. A taxpayer who wants separate letter rulings on multiple issues

should make this clear in the request and if submitting the request on paper, submit the original

and at least two copies of the request, with one additional copy for each additional separate

letter ruling requested. See section 15.06(3) of this revenue procedure regarding whether a

single user fee will be charged.

In issuing each letter ruling, the Associate office will state that it has issued separate letter

rulings or that requests for other letter rulings are pending.

Power of attorney used to

indicate recipient of a copy

or copies of a letter ruling

or a determination letter

(2) Power of attorney used to indicate recipient or recipients of a copy or copies of a letter

ruling or a determination letter. Once the Service signs the letter ruling or determination letter,

the Service has the discretion to determine the form in which it will provide the letter ruling or

determination letter to the taxpayer, but will generally comply with a taxpayer’s request for a

particular form. See section 7.02(5) of this revenue procedure. If providing the ruling on paper, the

Service will send the original to the taxpayer, not the taxpayer’s representative.

At the taxpayer’s request, the Service will send one copy of the letter ruling or determination

letter to up to two authorized representatives. At the discretion of the Service, the Service may

provide a copy of the letter ruling or determination letter to up to two authorized representatives,

even though the taxpayer did not request that the Service send a copy of notices and communications

to the taxpayer’s representatives. Taxpayers that use Form 2848, Power of Attorney and

Declaration of Representative, to designate representatives, may request that copies of notices

and communications be sent to the representatives listed at Line 2 by checking the corresponding

box on Line 2. Taxpayers may use Line 5 of Form 2848 to advise the Service that a copy of the

letter ruling or determination letter should not be sent to the taxpayer’s representative(s). If no

box is checked on Line 2 and the taxpayer does not indicate otherwise on Line 5, the Service may

in its discretion provide a copy of the letter ruling or determination letter to up to two authorized

representatives.

December 30, 2024

Bulletin No. 2025–1

“Two-part” letter ruling

requests

(3) To request a particular conclusion on a proposed transaction. A taxpayer who requests

a particular conclusion on a proposed transaction may make the request for a letter ruling in two

parts. This type of request is referred to as a "two-part" letter ruling request. The first part must

include the complete statement of facts and related documents described in section 7.01 of this

revenue procedure. The second part must include a summary statement of the facts the taxpayer

believes to be controlling in reaching the conclusion requested.

If the Associate office accepts the taxpayer's statement of controlling facts, it will base its letter

ruling on these facts. Ordinarily, this statement will be incorporated into the letter ruling. The

Associate office reserves the right to rule on the basis of a more complete statement of the facts

and to seek more information in developing the facts and restating them.

A taxpayer who chooses this two-part procedure has all the rights and responsibilities provided

in this revenue procedure.

Taxpayers may not use the two-part procedure if it is inconsistent with other procedures, such as

those dealing with requests for permission to change accounting methods or periods, applications

for recognition of exempt status under § 501(a) or § 521, or requests for rulings on employment

tax status.

After the Associate office has resolved the issues presented by a letter ruling request, the

Associate office representative may request that the taxpayer submit a proposed draft of the letter

ruling to expedite the issuance of the ruling. See section 8.07 of this revenue procedure.

Expedited handling

(4) To request expedited handling. The Service ordinarily processes requests for letter rulings

and determination letters in order of the date received. Expedited handling means that a request

is processed ahead of requests received before it. Expedited handling is granted only in rare and

unusual cases, both out of fairness to other taxpayers and because the Service seeks to process

all requests as expeditiously as possible and to give appropriate deference to normal business

exigencies in all cases not involving expedited handling. Expedited handling under this section

7.02(4) is not available as to a request for a letter ruling solely or primarily under the jurisdiction

of the Associate Chief Counsel (Corporate) (other than a § 301.9100 request described in section

5.03 of this revenue procedure for an extension of time for making an election or other relief, or

a request that includes a closing agreement with respect to an issue under the jurisdiction of the

Associate Chief Counsel (Corporate) or another Associate office). For guidance on fast-track

processing of such a letter ruling request, see Rev. Proc. 2023-26, 2023-33 I.R.B. 486.

A taxpayer with a compelling need to have a request processed ahead of requests received

before it may request expedited handling. This request must explain in detail the need for expedited

handling. The request for expedited handling must be made in writing, preferably in a separate

letter included with the request for the letter ruling or determination letter or provided soon after

its filing. If the request for expedited handling is contained in the letter requesting the letter ruling

or determination letter, the letter should state at the top of the first page "Expedited Handling Is

Requested. See page ___ of this letter."

A request for expedited handling will not be forwarded to a branch for action until the user fee

has been paid.

Whether a request for expedited handling will be granted is within the Service’s discretion.

The Service may grant the request when a factor outside a taxpayer’s control creates a real

business need to obtain a letter ruling or determination letter before a certain date to avoid serious

business consequences. Examples include situations in which a court or governmental agency has

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December 30, 2024

imposed a specific deadline for the completion of a transaction, or where a transaction must be

completed expeditiously to avoid an imminent business emergency (such as the hostile takeover

of a corporate taxpayer), provided that the taxpayer can demonstrate that the deadline or business

emergency, and the need for expedited handling, resulted from circumstances that could not

reasonably have been anticipated or controlled by the taxpayer. To qualify for expedited handling

in such situations, the taxpayer must also demonstrate that the taxpayer submitted the request as

promptly as possible after becoming aware of the deadline or emergency. The extent to which the

letter ruling or determination letter request complies with all of the applicable requirements of this

revenue procedure, and fully and clearly presents the issues, is a factor in determining whether

expedited treatment will be granted. When the Service agrees to process a request out of order, it

cannot give assurance that any letter ruling or determination letter will be processed by the date

requested.

The scheduling of a closing date for a transaction or a meeting of the board of directors or

shareholders of a corporation, without regard for the time it may take to obtain a letter ruling or

determination letter, will not be considered a sufficient reason to process a request ahead of its

regular order. Also, the possible effect of fluctuation in the market price of stocks on a transaction

will not be considered a sufficient reason to process a request out of order.

Because most requests for letter rulings and determination letters cannot be processed out of

order, the Service urges all taxpayers to submit their requests well in advance of the contemplated

transaction. In addition, to facilitate prompt action on letter ruling requests, taxpayers are

encouraged to ensure that their initial submissions comply with all of the requirements of this

revenue procedure (including the requirements of other applicable guidelines set forth in Appendix

F of this revenue procedure), to prepare “two-part” requests described in section 7.02(3) of this

revenue procedure when possible, and to promptly provide any additional information requested

by the Service.

Requesting form of any

document related to letter

ruling request provided

to taxpayer or taxpayer’s

authorized representative

(5) To request the receipt of any document related to letter ruling request by fax,

electronic facsimile, or encrypted email attachment. If the taxpayer so requests, the Associate

office may provide by fax, electronic facsimile, or encrypted email attachment to the taxpayer or

the taxpayer's authorized representative a copy of any document related to the letter ruling request

(for example, the letter ruling itself or a request for additional information). The Service has the

discretion to determine the form in which it will correspond with the taxpayer, but will generally

comply with a taxpayer’s request for a particular form.

The taxpayer must make such a request in writing, preferably as part of the original request

for the letter ruling. The request may be submitted at a later date, but such a request will only

be respected prospectively with respect to documents generated after it is received, and must be

received prior to the signing of the letter ruling.

If the taxpayer requests documents by any method other than encrypted email, the request must

contain the fax number of the taxpayer or the taxpayer's authorized representative to whom the

document is to be provided. A document other than the letter ruling will be faxed by a branch

representative. A copy of the letter ruling may be faxed by either a branch representative or

the Disclosure and Litigation Support Branch of the Legal Processing Division of the Office of

Associate Chief Counsel (Procedure and Administration) (CC:PA

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