IRS Realignment of Technical Work

Effective January 2, 2015 the Internal Revenue Service has realigned the responsibilities of technical work between the Tax Exempt and Government Entities Division (TE/GE) and the Office of Associate Chief Counsel, Tax Exempt and Government Entities (TEGE Counsel).  Announcement 2014-34 provides that the technical responsibility for preparing revenue rulings, revenue procedures, announcements, and notices, and issuing technical advice and certain letter rulings will move from the TE/GE to the TEGE Counsel.  Requests for a change in accounting method will not be affected by this realignment and should continue to be requested by using Form 3115.

The Employee Plans office of TE/GE will continue its authority to issue determination letters and the Exempt Organizations office of TE/GE will retain authority to issue exempt status determination letters.

After January 1, 2015, Employee Plans will retain the authority to issue letter rulings on the following subject matters:

  • Computation of the exclusion ratio under §72;
  • Waiver of the 60-day rollover requirement under §402(c)(3) and 408(d)(3) for distributions;
  • Whether individual retirement accounts established by employers or associations of employers meet the requirements of §408(c);
  • Approval to become a nonbank trustee (see §1.408-2(e));
  • Change in funding methods and actuarial assumptions under §412, 430 or 431;
  • Approval of substitute mortality tables under Rev. Proc. 2008-62, 2008-42 I.R.B. 935;
  • Extension of an amortization period under Rev. Proc. 2010-52, 2010-52 I.R.B. 927;
  • The tax consequences of prohibited transactions under §503 and 4975;
  • Waiver of the liquidity shortfall (as that term is defined in §430(j)(4)) excise tax under §4971(f)(4);
  • Approval of the return of certain nondeductible contributions to the employer pursuant to Rev. Proc. 90-49, 1990-2 C.B. 620;
  • Roth IRA recharacterization relief under §301.9100-1; and
  • A change in the plan year of an employee retirement plan and the trust year of a tax-exempt employees’ trust.

After January 1, 2015, Exempt Organizations will retain the authority to issue determination letters, including determinations regarding the following miscellaneous determinations requested using Form 8940, Request for Miscellaneous Determinations:

  • Advance approval of certain set-asides described in § 4942(g)(2);
  • Advance approval of voter registration activities described in § 4945(f);
  • Advance approval of scholarship procedures described in § 4945(g);
  • Exemption from Form 990 filing requirements;
  • Advance approval that a potential grant or contribution constitutes an “unusual grant”;
  • Change in Type (or initial determination of Type) of a §509(a)(3) organization;
  • Reclassification of foundation status, including a voluntary request from a public charity for private foundation status; and
  • Termination of private foundation status under §507(b)(1)(B) by an advance ruling request or after the 60-month period has ended.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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