Conference rights for a proposed adverse TAM

Plain-English summary

This Chief Counsel Advice explains the procedures that apply when the Associate Office proposes an adverse Technical Advice Memorandum. It says that a taxpayer who participated in a mandatory pre-submission conference still has a separate right to a conference about the proposed adverse TAM. The Associate Office should inform the taxpayer, schedule the conference, and allow the requesting office to participate. The proposed TAM should not be provided to the taxpayer before the conference, although the taxpayer may submit information, documents, and arguments in advance. Once a TAM request is formally submitted, only the Director may withdraw it.

Ruling snapshot

• Question: What conference and withdrawal rights apply to a proposed adverse TAM after a pre-submission conference?
• Outcome: Advice given
• Key authorities: Rev. Proc. 2013-2, §§ 6, 9, 11

Full text (IRS public release)

ID: CCA_2013072411090066
Office: ------------
UILC: 9102.01-00
Number: 201351023
Release Date: 12/20/2013
From: ----------------------
Sent: Wednesday, July 24, 2013 11:09:01 AM
To: ------------------------------------------------------------------------
Cc: ------------------
Subject: FW: TAM procedures

Hello ---------------------------------- -

You have asked me to clarify the TAM procedures. The facts of your case are as follows: Appeals
requested a TAM. The taxpayer, Appeals, and Exam all participated in a pre-submission conference.
Your division proposes an adverse TAM. The taxpayer will request a conference of right if the Associate
Office proposes to provide an adverse TAM. You have asked us to clarify whether the taxpayer is entitled
to a conference of right and the general application of Section 9 of Rev. Proc. 2013-2. Specifically, you
asked the following questions:

(1) Is the taxpayer entitled to a conference of right if the taxpayer participated in a pre-submission
conference?
(2) Who informs the taxpayer of the proposed adverse TAM?
(3) Should the Associate Office provide the taxpayer with a copy of the proposed TAM before the
conference?
(4) Who attends the conference? And,
(5) Does the taxpayer have the right to withdraw the request for a TAM?

Under your facts, the taxpayer is entitled to a conference of right to discuss the proposed adverse TAM.
A pre-submission conference differs from a conference of right. Under Section 6 of the Rev Proc, pre-
submission conferences are mandatory. The purposes of that conference is to provide information and to
determine the appropriate scope of the TAM. Section 9 of the Rev Proc, however, applies to situations in
which the Associate Office proposes an adverse TAM. Pursuant to Section 9, the taxpayer is afforded a
conference to discuss the decision as a matter of right, unless the taxpayer waives that right.
Participating in a mandatory pre-submission conference neither waives the taxpayer's right to a
conference of right, nor does it substitute for such a conference. Here, the taxpayer did not waived his
conference of right and, thus, should be afforded the opportunity to participate in a conference to discuss
the proposed adverse TAM.

If the TAM is adverse, the Associate Office should inform the taxpayer and schedule the conference. See
section 9.01. The Associate Office also informs the requesting office of the scheduled conference and
provides that office with the opportunity to participate in the conference. Section 9.02. Unless the
taxpayer requests an extension, the conference must occur within 10 days after the taxpayer is informed
of the proposed adverse TAM. Section 9.02 and 9.03. You should not provide a copy of the proposed
adverse TAM to the taxpayer before the conference. See Section 9.08. The taxpayer is notified of the
proposed adverse TAM to allow the taxpayer an opportunity to provide information, documents, and
arguments in writing before the conference. Section 9.06.

Once a TAM request is formally submitted, the taxpayer cannot withdraw the request. Only the Director
may withdraw a request for a TAM. See Section 11.01.

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Please let me know if you have any further questions.

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