mation letter, interpretation, or ruling, an application for an exception or exemption, or a pay challenge.

"Ruling" means a written statement issued to a person or his authorized representative by the Office of the Chief Counsel for the Internal Revenue Service which interprets and applies the regulations and guidelines of the Cost of Living Council, Pay Board, or Price Commission, as appropriate, to a specific set of facts. Rulings are issued only by the Office of the Chief Counsel for the Internal Revenue Service. The issuance of rulings is under the general supervision of the Chief Counsel and has been largely redelegated to the Stabilization Division.

§ 401.3 Filing of documents.

Except as otherwise provided in this subpart, a document is filed in the office where the filing is required only when the document is received in that office during the office hours when filing is permitted. Documents received after such hours are deemed filed on the next regular business day. § 401.4

Computation of time.

(a) All documents required to be served under this part shall be served personally or by registered or certified mail.

(b) Wherever a person is represented by a duly authorized representative, service on the representative shall constitute service on the person.

(c) A certificate of service shall be filed for each document served.

(d) Service by mail is complete upon mailing.

§ 401.6 Timely mailing treated as timely filing.

(a) General rule (1) Date of delivery. If any appeal, statement or other document required to be filed within a prescribed period or on or before a prescribed date under authority of any provision of this part is, after such period or such date, delivered by U.S. mail to the officer or office with

which such appeal, statement or other document is required to be filed, the date of the U.S. postmark stamped on the cover in which such appeal, statement or other document is mailed shall be deemed to be the date of delivery.

(2) Mailing requirements. This paragraph shall apply only if:

(i) The postmark date falls within the prescribed period or on or before the prescribed date for the filing (including any extension granted for such filing) of the appeal, statement or other document, and

(ii) The appeal, statement or other document was within the time prescribed in subdivision (i) of this subparagraph deposited in the mail in the United States in an envelope or other appropriate wrapper, postage prepaid, properly addressed to the officer or office with which the appeal, statement or other document is required to be filed.

(b) Registered and certified mail—(1) Registered mail. For purposes of this section, if any such appeal, statement, or other document is sent by U.S. registered mail:

(i) Such registration shall be prima facie evidence that the appeal, statement, or other document was delivered to the officer or office to which addressed, and,

(ii) The date of registration shall be deemed the postmark date.

(2) Certified mail. For purposes of this section, if any such appeal, statement, or other document is sent by U.S. certified mail and the sender's receipt is postmarked by the postal employee to whom such document is presented:

(i) Such sender's receipt shall be prima facie evidence that the appeal, statement, or other document was delivered to the officer or office thereon indicated, and

(ii) The date of such postmark shall be deemed the postmark date.

§ 401.7 Time for performance of acts where last day falls on Saturday, Sunday, or legal holiday.

When the last day prescribed under this part for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a legal holiday. For purposes of this section, the last day for the performance of any act shall be determined by including any author

ized extension of time; the term "legal holiday" means a legal holiday in the District of Columbia; and in the case of any appeal, statement, or other document required to be filed, or any other act required under authority of this part to be performed at any office of the Internal Revenue Service, located outside the District of Columbia but within an internal revenue district, the term "legal holiday" also means a Statewide legal holiday in the State where such office is located.

§ 401.8 Extension of time.

Where the provisions of this part require that an action be taken within a prescribed time, an extension of time may be granted by the appropriate district director, but only upon good cause shown and only where application is made before the expiration of the time otherwise prescribed (or January 31, 1972, if later). Subpart B-Instructions to Applicants § 401.101 Instructions to applicants.

(a) Each request for a determination must be submitted in writing to the appropriate district director and contain a complete statement of all relevant facts relating to the act or transaction. Such facts include names, addresses, and identifying numbers of all affected parties; a full and precise statement of the business reasons for the act or transaction (where appropriate); and a carefully detailed description of the act or transaction. In addition, true copies of all contracts, agreements, leases, instruments, and other documents involved must be submitted with the request. However, relevant facts reflected in documents submitted must be included in the statement and not merely incorporated by reference, and must be accompanied by an analysis of their bearing on the issue or issues, specifying the pertinent provisions. The request must contain a statement whether, to the best of the knowledge of the applicant or his representative, the identical issue is being considered by any field office of the Service (or other Governmental agency) in connection with a possible violation of economic stabilization regulations or guidelines by the person who is the subject of the requested determination. Where the request pertains to only one step of a larger integrated transaction, the facts, circumstances, etc., must be submitted with respect to the entire transaction. As

documents and exhibits become a part of the Internal Revenue Service file and cannot be returned, the original documents should not be submitted.

(b) If the applicant is contending for a particular determination, he must furnish an explanation of the grounds for his contentions, together with a statement of relevant authorities in support of his views. Even though the applicant is urging no particular determination with regard to an act or transaction, he must state his views as to the effect of economic stabilization regulations and guidelines upon the action and furnish a statement of relevant authorities to support such views.

(c) A request by or for an applicant must be signed by the applicant or his authorized representative. If the request is signed by a representative of the applicant, or if the representative is to appear before the Internal Revenue Service in connection with the request, he must either be:

(1) 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 files with the Service a written declaration that he is currently qualified as an attorney and he is authorized to represent the principal, or

(2) A certified public accountant who is duly qualified to practice in any State, possession, territory, Commonwealth, or the District of Columbia, and who files with the Service a written declaration that he is currently qualified as a certified public accountant and he is authorized to represent the principal. The above requirements do not apply to an individual representing his full-time employer, or to a bona fide officer, administrator, trustee, etc., representing a corporation, trust, estate, association, or organized group. Any authorized representative must also comply with the conference and practice requirements of subpart H of this part. Forms 2848, Power of Attorney, and 2848-D, Authorization and Declaration, may be used with regard to determinations requested pursuant to this section.

(d) Any request for a determination which does not comply with all the provisions of this section will be acknowledged, and the requirements which have not been met will be pointed out.

(e) An applicant or his representative who desires an oral discussion of the

issues or issues involved should indicate such desire in writing when filing the request or soon thereafter in order that the conference, if granted, may be arranged at that stage of consideration when it will be most helpful.

(f) It is the practice of the Service to process requests for interpretations and determinations in regular order and as expeditiously as possible. Compliance with a request for consideration of a particular matter ahead of its regular order, or by a specified time, tends to delay the disposition of other matters. Requests for processing ahead of the regular order, made in writing in a separate letter submitted with the request or subsequent thereto and showing clear need for such treatment will be given consideration as the particular circumstances warrant. However, no assurance can be given that any request for determination will be processed by the time requested. For example, the scheduling of a closing date for transaction or a meeting of the board of directors or shareholders of a corporation without due regard to the time it may take to obtain such a determination will not be deemed sufficient reason for handling a request ahead of its regular order. Neither will the possible effect of fluctuation in the market price of goods or commodities on a transaction be deemed sufficient reason for handling a request out of order. Requests by telegram will be treated in the same manner as requests by letter. Determinations ordinarily will not be issued by telegram.

Subpart C-Interpretations and
Rulings Issued to a Person

§ 401.201 Introduction.

It is the practice of the Internal Revenue Service to answer inquiries of individuals and organizations, whenever appropriate in the interest of sound administration of the President's Economic Stabilization Program, as to the application to them of the regulations and guidelines promulgated by the Cost of Living Council, Pay Board, and Price Commission in their acts and transactions. One of the functions of the Office of the Chief Counsel for the Internal Revenue Service is to issue rulings in such matters. District directors apply the regulations and guidelines promulgated by the Cost of Living Council, Pay Board, and Price Commission rulings published in the FEDERAL REGISTER, and other prec

§ 401.204

§ 401.205

[Reserved]

Practices and policies with respect to interpretations and rulings. (a) Circumstances under which the Office of the Chief Counsel issues rulings. The Office of the Chief Counsel issues rulings on prospective or completed acts or transactions. However, rulings will not be issued if:

(1) The Office of the Chief Counsel knows or has reason to believe that the identical issue is being considered by any field office of the Service (or other governmental agency) in connection with a possible violation of economic stabilization regulations or guidelines by the person who is the subject of the requested determination,

(2) The issue involved has been the subject of a recent court decision adverse to the Government and the question of following the decision or further litigating the matter has not been resolved, or (3) The requested determination includes an application for an exception or exemption, or a pay challenge.

(b) Circumstances under which district directors issue interpretations. District directors issue interpretations in response to requests submitted to their offices involving completed or prospective acts or transactions, but only if the question presented is covered specifically by the regulations and guidelines of the Cost of Living Council, Pay Board, or Price Commission, or specifically by a ruling or court decision. However, interpretations will not be issued if:

(1) The requested interpretation includes an application for an exception or exemption, or a pay challenge.

(2) The district director knows or has reason to believe that the identical issue

is being considered by any field office of the Service (or other Governmental agency) in connection with a possible violation of economic stabilization regulations or guidelines by the person who is the subject of the requested determination, or

(3) The issue involved has been the subject of a recent court decision adverse to the Government, and the question of following the decision or further litigating the matter has not been resolved.

(c) Discretionary authority to issue rulings and interpretations. There are certain areas where, because of the sensitive nature of the problem involved, or for other reasons, the Office of the Chief Counsel and the Service will not issue rulings or interpretations. The Office of the Chief Counsel and the Service may decline to issue rulings or interpretations whenever warranted by the facts or circumstances of a particular case. The National Office (including the Office of the Chief Counsel) and district directors may, when it is deemed appropriate and in the best interest of the Service and the public, issue information letters calling attention to well-established principles of the regulations and guidelines promulgated by the Cost of Living Council, Pay Board, and Price Commission.

(d) Reference of matters to district offices. The National Office and Office of the Chief Counsel will not entertain direct requests for interpretations and rulings, and, except in unusual circumstances, will forward such requests received for appropriate action to the appropriate district office.

(e) Review of interpretations. Interpretations are not generally reviewed by the National Office or Office of the Chief Counsel as they merely inform an applicant of a position previously established by regulations or guidelines, or in a ruling or court decision. If an applicant believes that an interpretation is in error, he may appeal under the provisions of §§ 401.601 to 401.605, if he has a substantial pecuniary interest. If an applicant without a substantial pecuniary interest believes that an interpretation is in error, he may request a review of the interpretation by the district director who issued the interpretation.

(f) Withdrawals of requests. Even though a request is withdrawn, all correspondence and exhibits will be retained in the Service and may not be returned to the applicant.

(g) Oral advice. (1) The Service does not issue rulings or interpretations upon oral requests. Furthermore, officials and employees of the National Office and Office of the Chief Counsel ordinarily will not discuss a substantive issue with an applicant or his representative. This should not be construed as preventing an applicant or his representative from inquiring whether the Service will rule on a particular question. The Service will also discuss questions relating to procedural matters with regard to submitting a request for an interpretation or ruling.

(2) An applicant may, of course, seek oral technical assistance from a district office, pursuant to other established procedures. Such oral advice is advisory only and the Service is not bound to recognize it in arriving at a formal determination.

(h) Effect of rulings. (1) A ruling may be revoked or modified at any time in the sound administration of economic stabilization regulations and guidelines.

(2) A ruling found to be in error or no longer appropriate may be modified or revoked. Modification or revocation may be affected by a notice to the applicant to whom the ruling originally was issued, or by a Cost of Living Council, Pay Board, or Price Commission ruling, as appropriate.

(3) Except in rare or unusual circumstances, the revocation or modification of a ruling will not be applied retroactively with respect to the applicant to whom the ruling was originally issued.

(4) A ruling issued to an applicant on a particular act or transaction applies to that act or transaction only. If the ruling is later found to be in error or no longer in accord with the position of the Service, it will afford the applicant no protection with respect to a like act or transaction.

(5) Persons generally may rely upon Cost of Living Council, Pay Board, and Price Commission rulings published in the FEDERAL REGISTER in determining the treatment of their own acts or transactions and need not request specific rulings applying the principles of a published ruling to the facts of their particular cases. However, since each published ruling represents the conclusion of the Service as to the application of the law to the entire state of facts involved, citizens, Service personnel, and others concerned are cautioned against reaching the same conclusion in other cases unless the facts and circumstances

Any person may file a request for an exception or an exemption.

§ 401.302 Where to file.

Unless the Cost of Living Council, Pay Board, or Price Commission, as appropriate, has agreed to accept a direct filing, a request for an exception or an exemption shall be filed with the district office of the Internal Revenue Service for the district in which the applicant resides or has his principal place of business. § 401.303 Instructions to applicants.

(a) In general. See § 401.101, for instructions generally applicable in the case of requests for determinations.

(b) Special instructions. In addition to the information otherwise required by § 401.101, a request for an exception or exemption shall also present evidence sufficient to establish:

(1) That the application of economic stabilization regulations and guidelines will result in serious hardship or gross inequity, and

(2) That the request is not designed as part of a plan to avoid the intent and purpose of the Act.

§ 401.304 Processing of requests.

Requests for exception or exemption are processed and evaluated by the appropriate district director in accordance with established procedures; and, when appropriate, forwarded to the National Office along with the case file for transmittal to the Cost of Living Council, Pay Board, or Price Commission, as appropriate. For statements of the policies and principles followed by the Council, Board, and Commission in making determinations with respect to such requests, see Chapters I, II, and III of this title, respectively.

A pay challenge shall be filed:

(a) In the case of a proposed pay adjustment submitted to the Pay Board in accordance with § 101.21 of this title, within 30 days of the date of such submission, or

(b) In the case of the establishment of a pay adjustment not required to be submitted in accordance with such section, within 30 days of the date of such establishment.

§ 401.404 Instructions to applicants.

(a) In general. See § 401.101, for instructions generally applicable in the case of requests for determinations.

(b) Special instructions. In addition to the information otherwise required by § 401.101, a pay challenge shall also present evidence sufficient to establish that the pay adjustment will result in serious hardship or gross inequity.

§ 401.405 Processing of pay challenges.

Pay challenges are not determined by the Internal Revenue Service. However, pay challenges are processed and evaluated by the appropriate district director in accordance with established procedures, and then forwarded to the National Office along with the case file for transmittal to the Pay Board. For a statement of the policies and principles followed by the Board in making determinations with respect to pay challenges, see Chapter II of this title.

Subpart F-Complaints and
Violations

§ 401.501 Complaints.

Complaints as to possible violations of the President's Economic Stabilization Program shall be processed, investigated, and evaluated by the Internal Revenue Service in accordance with established procedures. Citizens should