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CHAPTER IV–INTERNAL REVENUE SERVICE

Part 401

Procedural rules relating to economic stabilization matters.

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PART 401-PROCEDURAL RULES RE- Subpart Complaints and Violations

LATING TO ECONOMIC STABILIZA- Sec.
TION MATTERS

401.501 Complaints.

401.502 Violations. Subpart A-General

401.508 Violations other than those discovSec.

ered through requests for inter401.1 Purpose.

pretation or ruling, or complaint. 401.2 Definitions and terms. 401.3 Filing of documents.

Subpart G Appeals 401.4 Computation of time.

401.601 Right to appeal. 401.5 Service.

401.602 Time and place for filing appeal. 401.6 Timely mailing treated as timely 401.603 Contents of appeal. filing.

401.604 Action by district conferee 4:01.7 Time for performance of acts where

appeal.
last day falls on Saturday, Sun- 401.605 Effect of decision upon appeal.
day, or legal holiday.

RECONSIDERATIONS
401.8 Extension of time.
401.9 Certain small business enterprises. 401.606 Right to reconsideration,

401.607 Time and place for filing request for Subpart B Instructions to Applicants

reconsideration. 401.101 Instructions to applicants.

401.608 Contents of the request.

401.609 Action by Ofice of the Chief Counsel Subpart (Interpretations and Rulings Issued

on reconsideration. To a Person

401.610 Effect of a ruling by the Stabiliza401.201 Introduction.

trion Division, 401.202 who may file.

401.611 Copy of appeal required when ap401.203 Where to Ale.

peals are taken to the Ooundi, 401.204 [Reserved]

Board, or Commission. 401.205 Practices and policies with respect to interpretations and rulings.

Subpart H-Appearance Requirements

401.701 Rules governing authority to pracSubpart DExceptions and Exemptions

tice; who may practice. 401.301 Who may file.

401.702 Disciplinary actions. 401.302 Where to Ale. 401.303 Instructions to applicants.

Subpart 1-Rules and Regulations 401.804 Processing of requests.

401.801 Rules and regulations.
401.305 Notification of wage or rent excep-
tions or exemptions.

Subpart 1-Published Rulings
Subpart Pay Challenges

401.901 Proposal of rulings for publication.

401.902 Basis for proposals of publication. 401.401 who may initiate.

401.903 Processing of rulings proposed for 401.402 Where to Ale.

publication. 401.408 When to file.

401.904 Adoption, amendment, or modifica401.404 Instructions to applicants.

tion of rulings proposed for 401.405 Processing of pay challenges.

publication.

Subpart K-Inspection of Internal Revenue Counsel, which declares an administraEconomic Stabilization Records

tive determination contrary to the posiSec.

tion asserted by the applicant. 401.1001 Inspection of Internal Revenue “Complaint” means an allegation of a

Service stabilization records by violation of the President's Economic
Department of the Treasury and Stabilization Program.
Department of Justice.

“Cost of Living Council” means the Subpart 4 Issuance of Subpenas and

body established pursuant to the proviAdministration of Oaths

sions of Executive Order 11627 (3 CFR,

1971 Comp., p. 218), as amended. 401.1011 Authority to issue subpenas. 401.1012 Service of subpenas.

"Cost of Living Council Ruling" means 401.1013 Appearance of the person subpe

an official determination by the Office of naed.

the Chief Counsel for the Internal Rev401.1014 Enforcement of subpena.

enue Service, with the advice and con401.1015 Authority to administer oaths. currence of the General Counsel of the AUTHORITY: The provisions of this part 401

Cost of Living Council and the General issued pursuant to Economic Stabilization Counsel of the Treasury Department, Act of 1970, as amended, Public Law 91-379, which has been promulgated in the name 84 Stat. 799; Public Law 91-558, 84 Stat. 1468; of the Cost of Living Council and pubPublic Law 92–8, 86 Stat. 13; Public Law 92

lished in the FEDERAL REGISTER. Cost of 15, 86 Stat. 38; Public Law 92-210, 85 Stat.

Living Council Rulings are issued only 744, Executive Order No. 11627, as amended;

by the Office of the Chief Counsel and Cast of Living Council Order No. 5, 36 F.R. 21798; Pay Board Order No. 1, 36 F.R. 21798;

are published for the information and Price Commission Order No. 1, 36 F.R. 21798. guidance of citizens, Internal Revenue

Sections 401.606 to 401.611 also issued un- Service officials, and others concerned. der Executive Order No. 11640, 37 F.R. 1213; “District conferee" means a person Cost of Living Council Order No. 8, 37 F.R. designated by Internal Revenue Service 2727; Pay Board Order No. 4, 37 F.R. 3792;

to process and decide any appeal referred Price Commission Order No. 2, 37 F.R. 3212.

to in § 401.601. SOURCE: The provisions of this Part 401 “District director” means a district appear at 37 F.R. 1010, Jan, 21, 1972, unless director of the Internal Revenue Service, otherwise noted.

or his delegate.

"District office" means a district diSubpart A-General

rector's office and such local ofices within $ 401.1 Purpose.

his district as a director may designate. (a) It is the purpose of this part to

"Economic stabilization regulations prescribe and explain the procedures

and guidelines" means the regulations used by the Internal Revenue Service, in

and guidelines promulgated by the Cost cluding the Office of the Chief Counsel, in of Living Council, Pay Board, and Price administering the President's Economic

Commission in this title. Stabilization Program, with respect to

"Exception” means a waiver in a paracts and transactions occurring after No

ticular case of the requirer nts of any vember 13, 1971.

rule, regulation, or order, issued pursuant (b) These regulations shall be con

to the Act. strued to effectuate the purpose of the

"Exemption" means a general waiver Act and the economic stabilization regu

from the President's Economic Stabilizalations and guidelines and to provide for

tion Program granted by the Cost of Livthe just and prompt disposition of all

ing Council with respect to a class proceedings.

of property, services, or economic

transactions. $ 401.2 Definitions and terms.

“Information letter" means a stateAs used in this part, except where the ment issued by a district director which context indicates otherwise, the term:

calls attention to a well-established in"Act” means the Economic Stabiliza- terpretation or principle of the regulation Act of 1970 (Public Law 91–379, 84 tions or guidelines of the Cost of Living Stat. 799), as amended.

Council, Pay Board, or Price Commis“Act or transaction” shall include a sion, without applying it to a specific set series or combination of such acts or of facts. An information letter may be istransactions.

sued when the nature of the request from “Adverse action” means an interpreta- the individual or the organization sugtion or ruling, issued by the Internal gests that it is seeking general informaRevenue Service or the Office of the Chief tion or where the request does not meet all the requirements of g 401.101, and it is thereof, or a charitable, educational or believed that such general information other such institution; however, the term will assist the individual or organization. does not include a foreign government or

"Interpretation" means a written state- instrumentality thereof or international ment issued by a district director in re- organizations established by treaty sponse to an inquiry by an individual or or by agreement among participating an organization, which applies to the governments. particular facts involved the principles "Person aggrieved" means: and precedents previously announced by (1) A person with a substantial pethe Office of the Chief Counsel and the cuniary interest which is adversely afCost of Living Council, Pay Board, or fected by a determination, Price Commission, as appropriate. Inter- (2) A bargaining representative of the pretations are issued only where a deter- employees whose wages or salaries are mination can be made on the basis of subject to a pay adjustment, or in the established rules as set forth in the regu- absence of such bargaining representalations and guidelines of the Cost of Liv- tive, an employee whose wage or salary ing Council, Pay Board, and Price Com- is subject to a pay adjustment, mission, or by rulings or court decisions. (3) A person whose request for an ex

“National Office" means the Office of ception or for an exemption has been the Assistant Commissioner of Internal denied by a district director, or Revenue (Stabilization).

(4) Where no violation is found, the “Notice of violation" means a written tenant who filed a written complaint with statement issued to a person by the In- respect to a rent increase. ternal Revenue Service setting forth one "Person with a substantial pecuniary or more charges of alleged violation of interest” means a person who increased the President's Economic Stabilization or seeks to increase a price or rent, a Program.

person who is required to pay an increase “Office of the Chief Counsel” means in rent, wages, or salaries, or a person the Office of the Chief Counsel for the who put into effect or proposed a pay Internal Revenue Service located in adjustment. Washington, D.C.

"Practice before the Internal Revenue "Pay adjustment” means a change in Service” comprehends all matters conwages and salaries.

nected with presentation to the Internal "Pay Board” means the body estab- Revenue Service or any of its officers or lished pursuant to Executive Order 11627, employees relating to a client's rights, 36 F.R. 20139 (1971), as amended.

privileges, or liabilities under laws or “Pay Board Ruling' means an official regulations administered by the Interinterpretation by the Office of the Chief nal Revenue Service relating to economic Counsel for the Internal Revenue Service, stabilization matters. Such presentations with the advice and concurrence of the include the preparation and filing of General Counsel of the Pay Board and necessary documents, correspondence the General Counsel of the Treasury with and communications to the Internal Department, which has been promul- Revenue Service, and the representagated in the name of the Pay Board and tion of a client at conferences, hearings, published in the FEDERAL REGISTER. Pay and meetings. Neither the appearance of Board Rulings are issued only by the an individual as a witness, nor the furOffice of the Chief Counsel and are pub- nishing of information at the request of lished for the information and guidance the Internal Revenue Service or any of of citizens, Internal Revenue Service of- its officers or employees is considered ficials, and others concerned.

practice before the Revenue Service. “Pay Challenge" means an objection to “President's Economic Stabilization a pay adjustment as defined in § 201.14 Program” means the program estabof this title, filed by

lished and constituted pursuant to Exec(1) A party at interest as defined in utive Order 11627, 36 F.R. 20139 (1971), 8 201.3 of this title; or,

and the regulations and guidelines pro(2) Five or more members of the Pay mulgated in this title, to effectuate the Board.

purposes of the Act. “Person" means any individual, estate, "Price adjustment" means a change in trust, sole proprietorship, partnership, the unit price or a decrease in the quality association, company, joint-venture, cor- without a change in the unit price of poration, bargaining representative, gov- substantially the same property ernmental unit ar instrumentality services. 84-025 0-12-27

409

or

"Price Commission" means the body scribed or allowed by this part for the established pursuant to Executive Order performance of any act, the day of the 11627, 36 F.R. 20139 (1971), as amended. act, event, or default on which the desig

"Price Commission Ruling” means an nated period of time begins to run shall official interpretation by the Office of the not be counted. Additionally, if the period Chief Counsel for the Internal Revenue prescribed or allowed is 7 days or less, an Service, with the advice and concurrence intervening Saturday, Sunday, or Fedof the General Counsel of the Price Com- eral legal holiday shall not be counted. mission and the General Counsel of the [37 F.R. 6654, Apr. 1, 1972] Treasury Department, which has been

$ 401.5 Service. promulgated in the name of the Price Commission and published in the FED- (a) All documents required to be ERAL REGISTER. Price Commission Rulings served under this part shall be served are issued only by the Office of the Chief personally or by registered or certified Counsel and are published for the infor- mail. mation and guidance of citizens, Inter- (b) Wherever a person is represented nal Revenue Service officials, and others by a duly authorized representative, concerned.

service on the representative shall con"Request for a determination" means

stitute service on the person. a written inquiry by a person as to the

(c) A certificate of service shall be application to him of the regulations and

filed for each document served. guidelines promulgated by the Cost of

(d) Service by mail is complete upon Living Council, Pay Board, and Price mailing. Commission in respect of a completed or

$ 401.6 Timely mailing treated as timely proposed act or transaction. Thus, such

filing. a request may be a request for an interpretation or ruling, an application for

(a) General rule-(1) Date of dean exception or exemption, or a pay

livery. If any appeal, statement or challenge.

other document required to be filed "Ruling" means a written statement

within a prescribed period or on or beissued to a person or his authorized

fore a prescribed date under authority representative by the Office of the Chief of any provision of this part is, after Counsel for the Internal Revenue Serv

such period or such date, delivered by ice which interprets and applies the

U.S. mail to the officer or office with regulations and guidelines of the Cost of

which such appeal, statement or other Living Council, Pay Board, or Price

document is required to be filed, the date Commission, as appropriate, to a specific

of the U.S. Postmark stamped on the set of facts. Rulings are issued only by

cover in which such appeal, statement or the Office of the Chief Counsel for the

other document is mailed shall be deemed Internal Revenue Service. The issuance

to be the date of delivery. of rulings is under the general super

(2) Mailing requirements. This paravision of the Chief Counsel and has been

graph hall apply only if: largely redelegated to the Stabilization

(i) The postmark date falls within Division.

the prescribed period or on or before the [37 F.R. 1010, Jan. 21, 1972; 37 F.R. 1453,

prescribed date for the filing (includJan. 29, 1971, as amended at 37 F.R. 6653,

ing any extension granted for such filing) Apr. 1, 1972; 37 F.R. 11669, June 10, 1972; 37

of the appeal, statement or other docuF.R. 17375, Aug. 26, 1972]

ment, and

(ii) The appeal, statement or other $ 401.3 Filing of documents.

document was within the time preExcept as otherwise provided in this scribed in subdivision (i) of this subsubpart, a document is filed in the office paragraph deposited in the mail in the where the filing is required only when

United States in an envelope or other the document is received in that office

appropriate wrapper, postage prepaid, during the office hours when filing is

properly addressed to the officer or office

with which the appeal, statement or permitted. Documents received after such hours are deemed filed on the next

other document is required to be filed. regular business day.

(b) Registered and certified mail-(1)

Registered mail. For purposes of this sec$ 401.4 Computation of time.

tion, if any such appeal, statement, or Except as otherwise provided by law,

other document is sent by U.S. registered in computing any period of time pre- mail:

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