the pay adjustment is unreasonably inconsistent with the criteria established by the Pay Board. [37 F.R. 1010, Jan. 21, 1972, as amended at 37 F.R. 6655, Apr. 1, 1972; 37 F.R. 17376, Aug. 26, 1972] § 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 § 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 be advised that a price, rent, or pay increase is not necessarily, a violation of the Program. However, if a satisfactory explanation of such an increase which appears unwarranted cannot be obtained, a complaint is encouraged. Such complaints must be submitted to the appropriate district office. The telephone numbers and addresses of such offices may be obtained from telephone directories or information operators. (a) General. Each district has a mission to encourage and achieve the highest possible degree of voluntary compliance with the economic stabilization regulations and guidelines by: Enforcing the statutory sanctions applicable to the President's Economic Stabilization Program through the investigation of possible violations of such regulations and guidelines and the recommendation (when warranted) of civil or criminal action; developing information concerning the extent of violations of all economic stabilization regulations and guidelines; and measuring the effectiveness of the investigation process. (b) Investigative procedure. A person served with a notice of violation will be given an opportunity to explain his position with respect to the alleged violation prior to the submission of the case by the district director to the U.S. Attorney unless compelling reasons exist to the contrary. (See § 401.5 for rules relating to service.) The principal (the person upon whom the notice was served) will be granted an interview if he makes a request to the appropriate district director within 2 days after the date of receipt of the notice of violation. The interview will be held within a reasonable time after the receipt by the district director of the request for an interview, but in no event more than 5 days after the receipt of such request. At this interview, the principal may have counsel present and will be informed, by a general oral statement, of the features of his case which are alleged to show a violation of economic stabilization regulations and guidelines and, at the same time, there will be made available to the principal sufficient facts, figures, and legal analysis to acquaint him with the nature, basis, and other essential elements of the alleged violation. In his discretion, the district director, with the consent of the principal, may invite such other persons as are affected to participate in the conference. The principal may not file an appeal pursuant to the provisions of subpart G of this part nor may he make a request for an interpretation or ruling with respect to the subject matter of the notice of violation. (c) Civil and criminal action. The Internal Revenue Service may recommend, to the full extent of sanctions available under the President's Economic Stabilization Program, with respect to the alleged violations, the institution of appropriate actions against the principal. [37 F.R. 1010, Jan. 21, 1972, as amended at 37 F.R. 17376, Aug. 26, 1972] § 401.503 Violations other than those discovered through requests for interpretation, or ruling, or complaint. A violation discovered through any means other than through a request for an interpretation or ruling, or a complaint, shall be reported to the appropriate district director, including but not limited to a violation revealed by a report submitted in accordance with §§ 101.13 and 101.23 of this title, or during monitoring or spotcheck pursuant to §§ 101.15 and 101.25 of this title, or during any other authorized investigation. Right to appeal. Any person who is— (a) A person aggrieved (as defined in § 401.2), except a person aggrieved by a ruling or (b) Subject to any provision of an interpretation, may appeal in the manner set forth in this subpart. A person is, for the purposes of paragraph (b) of this section, subject to such a provision only if the interpretation was issued to him, the action is adverse to him, and he has a substantial pecuniary interest. A principal referred to in paragraph (b) of § 401.502 may not file an appeal pursuant to the provisions of this subpart with respect to the subject matter of the notice of violation issued to him. Any appeal not in accordance with this subpart, may be rejected by the appropriate district director. [37 F.R. 17376, Aug. 26, 1972] § 401.602 Time and place for filing appeal. Any appeal referred to in § 401.601 shall be filed with the district director whose office processed the determination appealed from within 30 days of (a) The service of the administrative determination causing the person to be aggrieved, or (b) The service of the interpretation referred to in such section. [37 F.R. 17376, Aug. 26, 1972] § 401.603 Contents of appeal. Every appeal shall set forth: (a) The name, address, and identifying number of the appellant, (b) A copy of the interpretation, (c) A clear and concise statement of all objections raised by the appellant against the provision or provisions objected to, and (d) Whether or not a conference is desired. The appellant must also include with his appeal a statement of his views as to the affect of economic stabilization regulations and guidelines upon the subject act or transaction and furnish a 137 F.R. 6655, Apr. 1, 1972. The district conferee shall process and decide an appeal pursuant to the procedural rules of this section: (a) When administratively feasible, within 30 days after the filing of any appeal in accordance with this subpart, the district conferee shall: (1) Grant or deny such appeal in whole or in part, or (2) If a conference has been requested and granted, conduct such conference under such conditions as he deems appropriate, (3) Invite any other persons affected to attend the conference as he deems appropriate, and, (4) Issue a notice of the date the conference is to be held to the appellant and all other persons affected invited by the district conferee to participate. (b) Where a conference on an appeal has been granted, the district conferee shall, when administratively feasible, within 30 days after such conference, grant or deny such appeal in whole or in part. (c) The district conferee shall serve the appellant and any other person affected who was invited by the district conferee to participate in the conference (or conferences) with notice of the decision rendered by such conferee as a result of such conference (or conferences). [37 F.R. 17376, Aug. 26, 1972] § 401.605 Effect of decision upon appeal. A decision of a district conferee pursuant to § 401.604 shall be deemed a final action by the Internal Revenue Service and may be appealed to the Cost of Living Council, Pay Board, or Price Commission, as appropriate, to the extent an appeal is otherwise allowable under the provisions of this title. [37 F.R. 17377, Aug. 26, 1972] RECONSIDERATIONS § 401.606 1 Right to reconsideration. Any person who is— (a) A person aggrieved (as defined in § 401.2) by a ruling, or (b) Subject to any provision of a ruling, may request a reconsideration of a ruling issued by the Office of the Chief Counsel (Stabilization Division) after March 31, 1972, in the manner set forth in this subpart. A person is, for the purposes of paragraph (b) of this section, subject to such a provision only if the ruling was issued to him, the action is adverse to him, and he has a substantial pecuniary interest. A principal referred to in paragraph (b) of § 401.502 may not make a request for reconsideration pursuant to the provisions of this subpart with respect to the subject matter of the notice of violation served on him. Any request for reconsideration not otherwise in accordance with this subpart, may be rejected by the office of the chief counsel (Stabilization Division). [37 F.R. 17377, Aug. 26, 1972] § 401.607 Time and place for filing request for reconsideration. Any request for reconsideration referred to in § 401.606 shall be filed within 30 days of the service of the ruling referred to in such section with the Office of the Chief Counsel for the Internal Revenue Service, Attention: Chief, Appeals and Review Branch, Stabilization Division, CC:S:A, 2025 M Street NW., Washington, DC 20226. [37 F.R. 19619, Sept. 21, 1972] § 401.608 Contents of the request. Every request for reconsideration shall set forth: (a) The name, address, and identifying number of the person seeking the reconsideration, (b) A copy of the ruling, (c) A clear and concise statement of all objections raised by the person seeking the reconsideration against the provision or provisions objected to, and (d) Whether or not a conference is desired. The person seeking the reconsideration must also include with his request a statement of his views as to the affect of economic stabilization regulations and guidelines upon the subject act or transaction and furnish a statement of relevant authorities to support such views. [37 F.R. 6655, Apr. 1, 1972] § 401.609 Action by Office of the Chief Counsel on reconsideration. The Office of the Chief Counsel (Stabilization Division) shall process and de (3) Invite any other persons affected to attend the conference as it deems appropriate, and (4) Issue a notice of the date the conference is to be held to the person seeking a reconsideration and all other persons affected who are invited by the Division to participate. (b) Where a conference on a request for reconsideration has been granted, the Stabilization Division shall, when administratively feasible, within 30 days after such conference, grant or deny such request in whole or in part. (c) The Stabilization Division shall serve the person seeking a reconsideration and any other person affected who was invited by such Division to participate in the conference (or conferences) with notice of the decision rendered by such Division as a result of such conference (or conferences). [37 F.R. 17377, Aug. 26, 1972] § 401.610 Effect of a ruling by the Stabilization Division. A ruling issued by the Stabilization Division or a decision of the Stabilization Division pursuant to § 401.609 shall be deemed a final action by the Office of the Chief Counsel (Stabilization Division) for the Internal Revenue Service and may be appealed to the Cost of Living Council, Pay Board, or Price Commission, as appropriate, to the extent an appeal is otherwise allowable under the provisions of this title. [37 F.R. 17377, Aug. 26, 1972] § 401.611 Copy of appeal required when appeals are taken to the Council, Board, or Commission. Any person qualified under § 401.606 to request a reconsideration may file an appeal with the Cost of Living Council, Pay Board, or Price Commission without seeking a reconsideration or after his request for reconsideration is denied in whole or in part. If an appeal is filed without the seeking of a reconsideration, the right to such reconsideration is forfeited. A copy of an appeal shall in all cases be sent to the Office of the Chief Counsel for the Internal Revenue Service, Attention: Chief, Appeals and Review Branch, Stabilization Division, CC:S:A, 2025 M Street NW., Washington, DC 20226. [37 F.R. 19619, Sept. 21, 1972] Subpart H-Appearance § 401.701 Rules governing authority to practice; who may appear. A person may appear on his own behalf or may be represenetd by any natural person, age 21 years or older, whom he has designated to represent him, except that such designated person may not be under disbarment or suspension from practice before the Internal Revenue Service. Such designation shall be made on Form S-68, Power of Attorney, and signed by the person legally authorized to so designate and shall be filed with the appropriate office of the Internal Revenue Service, including the Office of Chief Counsel, before which the appearance is to be made. [37 F.R. 11669, June 10, 1972] § 401.702 Disciplinary actions. Persons appearing before the Internal Revenue Service, including the Office of Chief Counsel, on economic stabilization matters will be subject to such rules regarding standards of conduct as the Secretary of the Treasury shall prescribe. The Secretary may after due notice and opportunity for hearing suspend or disbar any person from further appearance before the Service on economic stabilization matters for disreputable conduct as defined in Treasury Department Circular No. 230 (31 CFR Part 10). [37 F.R. 11669, June 10, 1972] Subpart -Rules and Regulations § 401.801 Rules and regulations. (a) Formulation. Internal Revenue Service rules relating to economic stabilization matters take various forms. The most important rules are issued as regulations prescribed by the Commissioner. Other rules may be issued over the signature of the Commissioner or the sig 137 F.R. 11669, June 10, 1972. nature of any other official to whom arthority has been delegated. Regulations are prepared in the Office of the Chief Counsel. After approval by the Chief Counsel and the Commissioner, the regulations are published in the FEDERAL REGISTER. (b) Publication of rules and regulations. All Internal Revenue Services regulations relating to economic stabilization matters are published in the FEDERAL REGISTER and in the Code of Federal Regulations. The FEDERAL REGISTER is also the authoritative instrument of the Internal Revenue Service for the announcement of official rulings, decisions, opinions, and procedures, and for the publication of other items pertaining to economic stabilization matters. It is the policy with respect to economic stabilization matters to have published in the FEDERAL REGISTER all substantive and procedural rulings of importance or general interest, the publication of which is considered necessary to promote a uniform application of economic stabilization regulations and guidelines. It is also the policy to have published in the FEDERAL REGISTER all rulings which revoke, modify, amend, or affect any published ruling. Rules relating solely to matters of internal practices and procedures are not published; however, statements of Internal Revenue Service practices and procedures affecting rights or duties of citizens or industry regulation, which appear in internal documents, are published in the FEDERAL REGISTER. § 401.903 Processing of rulings proposed for publication. Upon receipt of a ruling proposed for publication, the Cost of Living Council, Pay Board, or Price Commission, as appropriate, shall: (a) Review the proposed ruling, and (b) Determine its suitability for publication. § 401.904 Adoption, amendment, or modification of rulings proposed for publication. In the case a ruling proposed for publication which is adopted (as proposed, amended, or modified) by the Cost of Living Council, Pay Board, or Price Commission, the Council, Board, or Commission shall transmit such ruling to the Office of the Chief Counsel for publication in the FEDERAL REGISTER, as a Cost of Living Council Ruling, Pay Board Ruling, or Price Commission Ruling, as appropriate. Subpart K-Inspection of Internal Revenue Economic Stabilization Records § 401.1001 Inspection of Internal Revenue Service stabilization records by Department of the Treasury and Department of Justice. (a) In general. Pursuant to the provisions of section 205 of the Economic Stabilization Act of 1970 (Public Law 91-379, 84 Stat. 799), as amended by the Economic Stabilization Act Amendment of 1971 (Public Law 92-210, 85 Stat. 747), officers and employees of the Department of the Treasury (including the Internal Revenue Service and the Office of the Chief Counsel for the Internal Revenue Service) and the Department of Justice whose official duties require inspection of returns made in respect of any tax described in paragraph (a)(2) of § 301.6103(a)-1 of 26 CFR Part 301, or include the administration or enforcement of the provisions of the Economic Stabilization Act of 1970, as amended, may inspect the stabilization records of the Internal Revenue Service without making written application therefor. If the head of a bureau or office in the Department of the Treasury (not a part of the Internal Revenue Service or the Office of Chief Counsel for the Internal Revenue Service), or the Department of Justice, desires to inspect, or to have an employee of his bureau or office inspect, any such records in connection with some matter officially before him for reasons other than tax administration purposes or the administration or enforcement of the provisions of the Economic Stabilization Act of 1970, as amended, the inspection may, in the discretion of the Secretary of the Treasury or the Commissioner of Internal Revenue or the delegate of either, be permitted upon written application by the head of the bureau or office desiring the inspection. The application shall be made to the Commissioner of Internal Revenue, Washington, D.C. 20224, and shall show the name and address of the person about whom records are to be inspected and the reason why inspection is desired. The information obtained from inspection pursuant to this paragraph may be used as evidence in any proceeding, conducted by or before any department or establishment of the United States, or to which the United States is a party. (b) Definitions of terms—(1) Stabilization records. For purposes of this section, the term "stabilization records" includes (i) All schedules, lists, written statements, or other written documents filed by or on behalf of any person with the Internal Revenue Service, and (ii) All other reports, information received orally or in writing, factual data, documents, papers, abstracts, memoranda, or evidence taken, or any portion thereof, relating to any person and held by the Internal Revenue Service, to the extent any such item is with respect to the administration or enforcement of any provision of the Economic Stabilization Act of 1970, as amended, and is not part of a return (as defined in § 301.6103 (a)−1(a)(3)(i) of 26 CFR Part 301). (2) Person. For purposes of this section, the term "person" has the meaning given to such term under section 7701(a) (1) of the Internal Revenue Code of 1954 (63A Stat. 911; 26 U.S.C. 7701 (a)(1)). [37 F.R. 3741, Feb. 19, 19721 Subpart L-Issuance of Subpenas and Administration of Oaths AUTHORITY: The provisions of this Subpart L issued under sec. 206 of the Economic Stabilization Act of 1970, as amended (85 Stat. 747), Exectuive Order No. 11640 (37 F.R. 1213, Jan. 27, 1972), Cost of Living Council Order No. 8 (37 F.R. 2727, Feb. 4, 1972), Price Commission Order No. 2 (37 F.R. 3212, Feb. 12, 1972), Pay Board Order No. 4 |