IRS Allows Electronic Requests for Advice

The IRS now will accept both paper and electronic requests for advice. The IRS announced on April 30 that it is allowing the electronic submission of requests for letter rulings, closing agreements, determination letters and information letters under the jurisdiction of the IRS Office of Chief Counsel, as well as for determination letters issued by the IRS Large Business and International Division (LB&I).

The IRS made the announcement in Revenue Procedure (Rev. Proc.) 2020-29, which temporarily modifies the procedures in Rev. Proc. 2020-1, unless it also is modified or superseded. Rev. Proc. 2020-29 comes in accordance with the provision in Rev. Proc. 2020-1 that it would be updated annually as the first revenue procedure of the year, but also may be modified, amplified or clarified it at other times during the year. Rev. Proc. 2020-1 has been published in Internal Revenue Bulletin (IRB) 2020-1 I.R.B. 1 (Jan. 2, 2020).

Determination Letters

 

The IRS had outlined its procedures for determination letter requests in Revenue Procedure (Rev. Proc.) 2020-04, https://www.irs.gov/irb/2019-01_IRB#RP-2019-04 which also appeared in Internal Revenue Bulletin (IRB) 2020-1 I.R.B. 1 (Jan. 2, 2020).

 

How Rev. Proc. 2020-29 applies to determination letters depending on which IRS Division is involved. Rev. Proc. 2020-29 applies to determination letters and information letters under the jurisdiction of the IRS Office of Chief Counsel, as well as for determination letters issued by the IRS Large Business and International Division (LB&I). However, Rev. Proc. 2020-29 does not modify procedures for determination letters issued by the following IRS Divisions:

 

 

Under Rev. Proc. 2020-29, the IRS will accept electronic submissions for requests for advice made for matters under the jurisdiction of Associate Chief Counsel Offices and LB&I if the submissions are transmitted by facsimile or compressed and encrypted email attachments and signed using the electronic signature procedures the revenue procedure provides.  

 

The IRS encourages taxpayers and their representatives to use a secure electronic facsimile service for transmitting requests for advice. The IRS provides a secure electronic facsimile line, but there is a fee for its use.

 

While it warns that there are more risks associated with compressed and encrypted email attachments than with electronic facsimiles—such as the possibility that sensitive taxpayer information could be intercepted—the revenue procedure does provide procedures for using compressed and encrypted email attachments for transmitting a request for advice under the jurisdiction of any of the Associate Chief Counsel Offices and LB&I.

 

 

Rev. Proc. 2020-1 generally requires taxpayers to submit paper copies of written materials with wet signatures; Rev. Proc. 2020-29 allows electronic signatures to be submitted. The IRS will accept the images of signatures (scanned or photographed) in one of the following formats:

 

The IRS also will accept digital signatures that use encryption techniques to provide proof of original and unmodified documentation in one of those formats.

 

 

The IRS says in Rev. Proc. 2020-29 that it has the discretion to determine the form in which it will issue advice to the taxpayer, including transmittal by facsimile or email.

 

 

Rev. Proc. 2020-29 will be published in Internal Revenue Bulletin (IRB) 2020-21 on May 18, 2020.