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Technical advice memorandums (TAM) are furnished by the following offices:

The advice concerns the interpretation and proper application of the tax law, tax treaties, regulations, revenue rulings, notices or other precedents published by the Associate Chief Counsel office to a set of specific facts involving a specific taxpayer. Request a TAM when a lack of uniformity exists on the disposition of the issue or the issue is unusual or complex enough to warrant consideration by the Office of Chief Counsel.

Since TAM requests often result in the issuance of revenue rulings or other published guidance, Appeals is responsible for bringing appropriate issues to the attention of the Office of Chief Counsel through the TAM process. See Rev. Proc. 2007-2, 2007-1, IRB 88 (or its successor), for further information and background on the TAM request procedures. The IRS updates this revenue procedure annually as the second revenue procedure of the year, but the revenue procedure may be modified or amplified during the year. Also, see Rev. Proc. 2007-5, 2007-1 IRB 161 (or its successor), for procedures for requesting a TAM regarding issues in the employee plans area (including actuarial matters) and exempt organization area.

Appeals determines whether to request a TAM on any non-docketed case under its jurisdiction. A taxpayer may request that an issue under Appeals jurisdiction be referred for a TAM. However, the request may be denied if Appeals determines the referral to the Office of Chief Counsel is not warranted. The procedures for denial of technical advice are contained in section 5 of Rev. Proc. 2007-2.

In an effort to promote expeditious processing of a request for a TAM, confer with field Counsel and the Associate Chief Counsel office with jurisdiction over the subject matter (and in some cases the taxpayer) prior to submitting the request for a TAM to the Associate Chief Counsel office.

In all cases, a pre-submission conference is mandatory. Coordinate with field Counsel regarding all pre-submission conferences, regardless of whether a TAM is requested. In this situation, field Counsel assignments are subject to the ex parte rules set forth in section 1001(a)(4) of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. No. 105–20, and Rev. Proc. 2000-43, 2000-2 CB 404, (or its successor). If a request for a TAM is submitted without first holding a pre-submission conference, the Associate Chief Counsel office returns the request for advice.

Request a pre-submission conference only after determining a request for a TAM is likely. Before requesting a pre-submission conference, Appeals must contact the taxpayer and afford the taxpayer an opportunity to participate in the process by permitting the taxpayer to prepare a statement in accordance with section 6.03 of Rev. Proc. 2007-2. Taxpayer participation in the conference is not required.

Do not request a TAM for any issue if the same issue is involved in a docketed case for any taxpayer for any taxable year. Instead, request legal advice from field Counsel. See IRM 8.6.3.5.

Request a TAM at the earliest possible stage of the proceedings. However, the lack of timeliness is not a reason for denying a request.

If the TAM request involves an Appeals Technical Guidance Program coordinated or emerging issue, the appeals officer must coordinate the request with the Appeals Technical Guidance Coordinator before contacting the Associate Chief Counsel office.

If during the preliminary review, it is determined there is a need for a TAM, return the case to the originating function so they may make the request. If subsequent to the preliminary review, it is determined there is a need for a TAM, submit the request as soon as possible and do not return the case to the originating function.

If Appeals is not in agreement with the conclusion(s) reached in the TAM, submit a written request for reconsideration. Before requesting reconsideration, consult with field counsel. See Rev. Proc. 2007-2, Section 10.08.

Appeals is bound by a TAM if favorable to the taxpayer. When a TAM is unfavorable to the taxpayer, Appeals may settle the issue under existing authority. However, for procedures to follow when full concession of the issue is recommended without offsetting see the subsequent section entitled, Procedures If Appeals Conclusion is Contrary to Technical Advice or Technical Expedited Advice. See IRM 8.6.3.4.

Except in rare or unusual circumstances, a holding in a TAM favorable to the taxpayer is applied retroactively. Moreover, because a TAM is issued only a closed transaction, a holding adverse to the taxpayer is also applied retroactively unless the Associate Chief Counsel with jurisdiction over the TAM exercises the discretionary authority under IRC 7805(b) to limit the retroactive effect of the holding.

Prepare four copies of Form 4463 (with a revision date of January 2004 or later), "Request for Technical Advice or Technical Expedited Advice" . Two copies are for the Associate Chief Counsel office. Send one copy of the request to Division Counsel for the operating division with jurisdiction of the taxpayer’s return; and one copy of the request to the Chief, Appeals at the following address:

The field Counsel with whom Appeals coordinated the TAM request submits the request for the TAM to the appropriate Associate Chief Counsel office.