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(i) Such registration shall be prima accorded expeditious handling by the Infacie evidence that the appeal, state- ternal Revenue Service. ment, or other document was delivered [37 F.R. 17375, Aug. 26, 1972] to the officer or office to which addressed, and,

Subpart B-Instructions to Applicants (ii) The date of registration shall be § 401.101 Instructions to applicants. deemed the postmark date.

(a) Each request for a determination (2) Certified mail. For purposes of must be submitted in writing to the apthis section, if any such appeal, state- propriate district director and contain a ment, or other document is sent by U.S.

complete statement of all relevant facts certified mail and the sender's receipt

relating to the act or transaction. Such is postmarked by the postal employee to

facts include names, addresses, and idenwhom such document is presented:

tifying numbers of all affected parties (if (i) Such sender's receipt shall be

reasonably ascertainable); a full and prima facie evidence that the appeal, precise statement of the business reasons statement, or other document was de- for the act or transaction (where approlivered to the officer or office thereon in

priate); and a carefully detailed descripdicated, and

tion of the act or transaction. In addi(ii) The date of such postmark shall tion, true copies of all contracts, be deemed the postmark date.

agreements, leases, instruments, and $ 401.7 Time for performance of acts

other documents involved must be subwhere last day falls on Saturday,

mitted with the request. However, releSunday, or legal holiday.

vant facts reflected in documents sub

mitted must be included in the stateWhen the last day prescribed under

ment and not merely incorporated by this part for performing any act falls on

reference, and must be accompanied by Saturday, Sunday, or a legal holiday,

an analysis of their bearing on the issue the performance of such act shall be con

or issues, specifying the pertinent provisidered timely if it is performed on the

sions. The request must contain a statenext succeeding day which is not a Sat

ment whether, to the best of the knowlurday, Sunday, or a legal holiday. For

edge of the applicant or his representapurposes of this section, the last day

tive, the identical issue is being considfor the performance of any act shall

ered by any field office of the Service (or be determined by incïuding any author

other governmental agency) in connecized extension of time; the term "legal

tion with a possible violation of economic noliday” means a legal holiday in the

stabilization regulations or guidelines by District of Columbia; and in the case of the person who is the subject of the reany appeal, statement, or other docu

quested determination. The request must ment required to be filed, or any other

also contain a statement as to whether act required under authority of this part

the applicant or his representative has to be performed at any office of the In

previously requested a determination ternal Revenue Service, located outside

with respect to the subject matter of the the District of Colurbia but within an

requested determination from any office internal revenue district, the term “legal of the Service or Office of Chief Counsel holiday” also means a Statewide legal for Internal Revenue Service or any other holiday in the State where such office

governmental agency, detailing the disis located.

position of any such previous request, or $ 401.8 Extension of time.

has filed an application for an exception

or an exemption, or if a pay challenge Where the provisions of this part re

has been filed with respect to the subquire that an action be taken within a

ject matter of the requested determinaprescribed time, an extension of time may

tion. Where the request pertains to only be granted by the appropriate district

one step of a larger integrated transacdirector, but only upon good cause shown tion, the facts, circumstances, etc., must and only where application is made be- be submitted with respect to the entire fore the expiration of the time otherwise transaction. As documents and exhibits prescribed (or January 31, 1972, if later). become a part of the Internal Revenue

Service file and cannot be returned, the $ 401.9 Certain small business enter

original documents should not be prises.

submitted. Any request for a determination made (b) If the applicant is contending for by a small business enterprise shall be a particular determination, he must furnish an explanation of the grounds will not be deemed sufficient reason for for his contentions, together with a handling a request ahead of its regular statement of relevant authorities in sup- order. Neither will the possible effect of port of his views. Even though the ap- fluctuation in the market price of goods plicant is urging no particular deter- or commodities on a transaction be mination with regard to an act or trans- deemed sufficient reason for handling a action, he must state his views as to the request out of order. Requests by teleeffect of economic stabilization regula- gram will be treated in the same manner tions and guidelines upon the action and as requests by letter. Determinations furnish a statement of relevant author- ordinarily will not be issued by telegram. ities to support such views.

(g) A request for a ruling or interpre(c) A request by or for an applicant tation which includes, or could be conmust be signed by the applicant or his strued to include, an application for an authorized representative. If the request exception, exemption, or a pay challenge is signed by a representative of the ap- will nonetheless be treated solely as a plicant, or if the representative is to ap- request for a ruling or interpretation, as pear before the Internal Revenue Sery- appropriate, and processed as such. ice, including the Office of the Chief [37 F.R. 1010, Jan. 21, 1972, as amended at Counsel, in connection with the request, 37 F.R. 6654, Apr. 1, 1972; 37 F.R. 11669, he must be a person who complies with

June 10, 1972; 37 F.R. 17375, Aug. 26, 1972] the appearance requirements of Subpart

Subpart C-Interpretations and H of this part. Such representative must not be under disbarment or suspension

Rulings Issued to a Person to practice before the Internal Revenue § 401.201 Introduction. Service. Form S–68, Power of Attorney,

It is the practice of the Internal Revemust be used with regard to determina

nue Service to answer inquiries of inditions requested pursuant to this section.

viduals and organizations, whenever (d) Any request for a determination which does not comply with all the pro

appropriate in the interest of sound ad

ministration of the President's Economic visions of this section will be acknowl

Stabilization Program, as to the applicaedged, and the requirements which have

tion to them of the regulations and not been met will be pointed out. (e) An applicant or his representative

guidelines promulgated by the Cost of who desires an oral discussion of the

Living Council, Pay Board, and Price

Commission in their acts and transacissues or issues involved should indicate

tions. One of the functions of the Office such desire in writing when filing the

of the Chief Counsel for the Internal request or soon thereafter in order that the conference, if granted, may be ar

Revenue Service is to issue rulings in

such matters. District directors apply the ranged at that stage of consideration when it will be most helpful.

regulations and guidelines promulgated (f) It is the practice of the Service to

by the Cost of Living Council, Pay Board,

and Price Commission rulings published process equests for determinations in

in the FEDERAL REGISTER, and other precregular order and as expeditiously as

edents in issuance of interpretations in possible. Compliance with a request for

answer to citizen's inquiries or requests consideration of a particular matter ahead of its regular order, or by a speci

as to the application to them of the

regulations and guidelines promulgated fied time, tends to delay the disposition of other matters. Requests for process

by the Cost of Living Council, Pay Board,

and Price Commission. ing ahead of the regular order, made in writing in a separate letter submitted § 401.202 Who may file. with the request or subsequent thereto

Any person may file a request for an and showing clear need for such treat

interpretation or a ruling. ment will be given consideration as the particular circumstances warrant. How- § 401.203 Where to file. ever, no assurance can be given that any

A request for an interpretation or a request for determination will be proc- ruling shall be in writing and filed with essed by the time requested. For example,

the district office of the Internal Revenue the scheduling of a closing date for

Service for the district in which the transaction or a meeting of the board of directors or shareholders of a corpora

applicant resides or has his principal tion without due regard to the time it

place of business. may take to obtain such a determination § 401.204 [Reserved]

$ 401.205 Practices and policies with re- or for other reasons, the Office of the

spect to interpretations and rulings. Chief Counsel and the Service will not (a) Circumstances under which the

issue rulings or interpretations. The

Office of the Chief Counsel and the Office of the Chief Counsel issues rulings. The Office of the Chief Counsel issues

Service may decline to issue rulings or rulings on prospective or completed acts

interpretations whenever warranted by

the facts or circumstances of a particuor transactions. However, rulings will not

lar case. District Directors may, when be issued if: (1) The Office of the Chief Counsel

it is deemed appropriate and in the best knows or has reason to believe that the

interest of the Service and the public, identical issue is being considered by any

issue information letters calling attenfield office of the Service (or other gov

tion to well-established principles of

the regulations and guidelines promulernmental agency) in connection with a possible violation of economic stabiliza

gated by the Cost of Living Council, Pay

Board, and Price Commission. tion regulations or guidelines by the per

(d) Reference of matters to district son who is the subject of the requested determination,

offices. The National Office will not en

tertain direct requests for interpreta(2) The issue involved has been the subject of a recent court decisioni adverse

tions and will forward such requests

received for action to the appropriate to the Government and the question of

district office. The Office of the Chief following the decision or further litigat

Counsel, except in unusual circuming the matter has not been resolved, or

stances will not entertain direct requests (3) An application has been made for

for rulings, and will forward such rean exception or exemption, or a pay

quests received for action to the approchallenge has been filed with respect to the subject matter of the requested

priate district office. (b) Circumstances under which dis

(e) Review of interpretations. Intertrict directors issue interpretations. Dis

pretations are not generally reviewed by

the National Office or the Office of the trict directors issue interpretations in

Chief Counsel as they merely inform an response to requests submitted to their offices involving completed or prospective

applicant of a position previously estabacts or transactions, but only if the ques

lished by regulations or guidelines, or in tion presented is covered specifically by

a ruling or court decision. If an applithe regulations and guidelines of the

cant believes that an interpretation is Cost of Living Council, Pay Board, or

in error, he may appeal under the proPrice Commission, or specifically by a

visions of $ $ 401.601 through 401.605 if ruling or court decision. However, inter

he qualifies. An applicant who does not pretations will not be issued if:

qualify under $ 401.601 may request a re(1) An application has been made for

view of the interpretation by the district an exception or exemption, or a pay

director who issued the interpretation. challenge has been filed with respect to

(f) Withdrawals of requests. Even the subject matter of the requested

though a request is withdrawn, all cordetermination,

respondence and exhibits will be re(2) The district director knows or has

tained in the Service and may not be reason to believe that the identical issue returned to the applicant. is being considered by any field office of (g) Oral advice. (1) Rulings or interthe Service (or other Governinental pretations are not issued upon oral reagency) in connection with a possible quests. Furthermore, oficials and emviolation of economic stabilization regu- ployees of the National Office and Office lations or guidelines by the person who is of the Chief Counsel will not discuss a the subject of the requested determina

substantive issue with an applicant or tion, or

his representative. This should not be (3) The issue involved has been the construed as preventing an applicant subject of a recent court decision ad- or his representative from inquiring verse to the Government, and the ques

whether the Service will rule on a partion of following the decision or further ticular question. The Service will discuss litigating the matter has not been questions relating to procedures for subresolved.

mitting a request for an interpretation (c) Discretionary authority to issue or ruling. rulings and interpretations. There are (2) An applicant may, of course, seek certain areas where, because of the sen- oral technical assistance from a district sitive nature of the problem involved, office, pursuant to other established pro

cedures. 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 Seryice, 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 are substantially the same. Furthermore, they should consider the effect of subsequent legislation, regulations, court decisions, and published rulings.

(i) Effect of interpretations. An interpretation issued by a district director, in accordance with this section, shall be given the same effect with respect to the applicant to whom the interpretation was issued as is described in paragraph (h) of this section, in the case of a ruling issued to an applicant.

(j) Service. After August 29, 1972, all interpretations and rulings issued by the Internal Revenue Service and the Office of the Chief Counsel shall be served on the applicant who requested the interpretation or ruling.

(k) Notification of wage or rent interpretations or rulings. An applicant served with an interpretation or a ruling concerning a pay or rent adjustment shall immediately notify such other persons as are affected by such interpretation or ruling of the nature of the interpretation or ruling, including the date of its service, and of the availability for inspection of such ruling or interpretation, by posting such notification for a period of 30 consecutive days after the service of the interpretation or ruling on a public entrance to or on a public bulletin board located in either the building in which the affected tenants reside (in the case of affected tenants) or at the jobsite of an appropriate employee unit not represented by a collective bargaining agent, or by mailing or hand-delivering such notification to such other person as is affected when such other person either is a landlord, employer, employer association, or collective bargaining agent of an employee unit. An applicant who appeals the interpretation or ruling issued to him shall notify such other persons as are affected by the interpretation or ruling in the same manner as he is required to notify such persons of the interpretation or ruling. [37 F.R. 1010, Jan. 21, 1972, as amended at 37 F.R. 6654, Apr. 1, 1972; 37 F.R. 17375, Aug. 26, 1972) Subpart D—Exceptions and

Exemptions § 401.301 Who may file.

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 ofice 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. A request for an exception or a request for an exemption must be clearly designated as such. Any request for an exception or an exemption included in a request for an interpretation or ruling shall be processed solely as a request for an interpretation or ruling,

appropriate. The provisions of § 401.101, relating to instructions applicable to requests for determinations, are

as

generally applicable to requests for an exception or an exemption. Any request for an exception or an exemption not otherwise in accordance with this subpart may be rejected by the appropriate district director.

(b) Special instructions. A request for an exception or a request for an exemption shall present evidence sufficient to establish

(1) That the application of economic stabilization regulations and guidelines will result in serious hardship or gross inequity, or will in cases subject to Part 301 of this title result in extreme hardship,

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

(3) That, in the case of request for exception pursuant to $ 301.109 of this title, the lessees have been notified of such request in the manner prescribed in such section. Requests for exception will not be processed if they are based on a proposed wage agreement. 137 F.R. 6654, Apr. 1, 1972, as amended at 37 F.R. 17376, Aug. 26, 1972) § 401.301 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. 137 F.R. 1010, Jan. 21, 1972; 37 F.R. 1453, Jan, 29, 1972) § 401.305 Notification of wage or rent

exceptions or exemptions. An applicant served with a decision by the Internal Revenue Service with respect to an exception or exemption request concerning a pay or rent adjustment shall immediately notify such other persons as are affected by such decision of the nature of the decision, including the date of its service, and the availability for inspection of such decision, by posting such notification for a period of 30 consecutive days after the service of the decision on a public en

trance to or on a public bulletin board located in either the building in which the affected tenants reside (in the case of affected tenants) or at the job site of an appropriate employee unit not rep-. resented by a collective bargaining agent, or by mailing or hand-delivering such notification to such other person as is affected when such other person either is a landlord, employer, employer association, or collective bargaining agent of an employee unit. An applicant who appeals the decision issued to him by the Internal Revenue Service with respect to an exception or exemption request shall notify such other persons as are affected by the decision of such appeal in the same manner as he is required to notify such persons of the decision. [37 F.R. 17376, Aug. 26, 1972]

Subpart E-Pay Challenges § 401.401 Who may initiate.

A pay challenge may be initiated by any party at interest, as defined in $ 201.3 of this title. § 401.402 Where to file.

A pay challenge shall be filed with the district office of the Internal Revenue Service for the district in which the party resides or has its principal place of business. $ 401.403 When to file. 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. A pay challenge must be clearly designated as such. Any pay challenge included in a request for an interpretation or ruling shall be processed solely as a request for an interpretation or ruling, as appropriate. The provisions of § 401.101, relating to instructions applicable to request for determinations, are generally applicable to a pay challenge.

(b) Special instructions. In addition to the information otherwise required by § 401.101, a pay challenge shall also present evidence sufficient to establish that

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