New pilot program to expedite technical advice process.

Editor's note: Mr. Ely is former chair of the AICPA relations with the IRS Committee. Messrs. Van Deveer, Black, Welty and Blair are members of that committee.

The IRS instituted a new pilot program for issuing Technical Expedited Advice Memoranda (TEAMs), in Rev. Proc. 2002-30. Its goal is to issue TEAMs within 60 days. The program is testing new procedures for streamlining the Technical Advice Memoranda (TAMs) process and eliminating requirements that may cause delays. The TEAM pilot program is limited to issues originating only in the Office of Examinations (Examinations) or Appeals (Appeals), and submitted to the Associate Chief Counsel, Income Tax & Accounting (IT&A).

Eligibility

All IT&A issues are eligible for the TEAM program, unless a case requires coordination outside IT&A. During the test period, all TAM requests to IT&A should be submitted using the presubmission procedures outlined in Rev. Proc. 2002-30. A TEAM request may be made by a taxpayer, Examinations, Appeals or IRS field counsel, as long as it goes through the appropriate supervisory chain. If IT&A denies a request, the denial can be appealed to an operating division's commissioner or an Appeals Deputy Director. The TEAM process will be available only if after a presubmission conference the taxpayer, Examinations, Appeals or IRS field counsel agree that it is appropriate. However, the National Office can remove a case if it later determines that the issue is too complex to be timely resolved under the TEAM guidelines.

Procedures and Timeline

In general, the same procedures for requesting a TAM are followed for a TEAM, with some modifications to expedite the process. Examinations or Appeals (with the assistance of field counsel) prepares a statement of facts and submits it to the taxpayer, who has 10 days to respond. If the taxpayer disagrees and the differences cannot be resolved within another 10 days, both sets are sent to IT&A.

IT&A will attempt to issue the TEAM to the field within 60 days of receipt. For cases with two sets of facts, it will issue two TEAMs, based on each set. However, if the difference in facts is immaterial, IT&A will issue only one TEAM. If it issues more than one, the field will not be required to process the case on the basis of either TEAM's conclusions.

The field has 30 days after the TEAM's issuance to request reconsideration. If none is requested by field counsel, Examinations or Appeals, the TEAM takes effect at the end of the 30-day period following its issuance. If either field counsel, Examinations or Appeals requests TEAM reconsideration, the TEAM will become effective five days after IT&A's ruling on the reconsideration.

IT&A does not provide the taxpayer with a TEAM (or advise the taxpayer of a proposed resolution or conclusion) until after the later of IT&A's issuance of a ruling on a reconsideration request or, if no reconsideration is requested, after the expiration of the 30-day period to request reconsideration.

Although the pilot program includes a procedure for field counsel, Examinations or Appeals to request reconsideration before a TEAM becomes final, taxpayers have no such right. Moreover, reconsideration is limited to overlooked or misconstrued points, not to issues previously argued in the initial TEAM request.

Conclusion

If the TEAM pilot program proves successful, the Chief Counsel's Office expects to expand the program to cover additional issues and all Chief Counsel offices. The program may also be made permanent in Rev. Proc. 2003-2 or in later guidance. Taxpayer and practitioner comments on the TEAM program can be submitted online at www.irs.gov/prod/tax_regs/ comments.html.

FROM MARK A. VAN DEVEER, THATCHER & BENSON PC, VIRGINIA BEACH, VA