The Mutual Agreement Procedure (MAP) articles of U.S. tax treaties and tax coordination agreements grant taxpayers the right to request the assistance of the appropriate competent authority specified in the treaty or agreement when the taxpayer believes that the actions of the United States or the applicable U.S. treaty partner or U.S. territory result or will result in the taxpayer being subject to taxation not in accordance with the applicable treaty or tax coordination agreement. This situation typically arises from U.S. or foreign initiated adjustments resulting from an examination but can arise from other U.S. or foreign initiated actions.

Generally, the MAP articles of U.S. tax treaties and tax coordination agreements provide the authority for taxpayers to request, and competent authorities to provide, relief from taxation not in accordance with a tax treaty or tax coordination agreement. The U.S. Competent Authority procedural authority is provided by Treasury Order 150-10 and IRS Delegation Order 4-12 Rev. 4, Authority to Act as Competent Authority or Taxation Authority Under Certain International Agreements, Authorize the Disclosure of Tax Information Under Mutual Legal Assistance Treaties, and Disclose Certain Tax Convention Information (see also, IRM 1.2.2.5.11, Delegation Order 4-12 (Rev. 4)).

The Director, TTPO, is responsible for the policies and procedures discussed in this IRM.

The Advance Pricing and Mutual Agreement (APMA) director is responsible for overseeing the activities of the U.S. Competent Authority as carried out by APMA managers and employees in relation to the MAP, advance pricing agreement (APA), and discretionary limitation on benefits (LOB) request processes per the procedures in this IRM.

An APMA assistant director (AD) is responsible for overseeing team and employee handling of MAP, APA, and discretionary LOB requests per the procedures in this IRM. An APMA AD, among other responsibilities, reviews the recommendations of APMA frontline managers (FLMs), determines whether to recommend accepting or declining an APA request, and elevates recommendations to decline an APA request to the APMA director for concurrence.

An APMA FLM is responsible for overseeing employee handling of MAP, APA, and discretionary LOB requests per the procedures in this IRM. An APMA FLM, among other responsibilities, reviews APA pre-filing memoranda and MAP, APA, and discretionary LOB requests and makes recommendations regarding those requests.

APMA employees, including APMA team leaders and Treaty Assistance and Interpretation Team (TAIT) competent authority analysts, handle MAP, APA, and discretionary LOB requests per the procedures in this IRM.

Transfer Pricing Practice (TPP) economists may be included on an APA team to assist with an APA request; the exact scope of participation will depend on the specifics of the case and on coordination and collaboration between APMA and TPP team member management.

TPP tax law specialists may be included on an APA team to assist with an APA request; the exact scope of participation will depend on the specifics of the case and on coordination and collaboration between APMA and TPP team member management.

Cross Border Activities (CBA) revenue agents may be included on an APA team to assist with an APA request; the exact scope of participation will depend on the specifics of the case and on coordination and collaboration between APMA and CBA team member management.

Geographic Practice Area (GPA) and Pass-Through Entity (PTE) examination team members participate in most phases of the APA process after APMA has accepted a taxpayer's APA request, primarily by executing consent agreements, as necessary, to extend the period of limitations for assessment and collaborating with APMA to monitor statutes.

TTPO practice area directors prepare periodic briefing reports for the LB&I Commissioner on the MAP process, covering:

The relevant TTPO directors, including the Director of Field Operations (DFO), Director, TPP, and the Director, APMA Program, report to the TTPO practice area director on a continual basis.

TTPO directors identify goals and objectives to be achieved by their organizations based on annual commitments of LB&I priorities.

See Exhibit 4.60.3-1, Terms/Definitions/Acronyms, for a list of commonly used acronyms and terms in this IRM.

IRM 4.46.6, LB&I Examination Process, Workpapers and Reports Resources

IRM 4.60.1, Exchange of Information

IRM 4.60.2, Mutual Agreement Procedures and Report Guidelines

IRM 21.8.2.12.2.2, Claims for Tax Withheld at Source

For competent authority issues that arise from an examination conducted by the IRS, the U.S. Competent Authority will not accept a competent authority request before the IRS has communicated the amount of the proposed adjustment to the taxpayer in writing (e.g., by issuing Form 5701, Notice of Proposed Adjustment or Form 4549, Report of Income Tax Examination Changes).

The U.S. Competent Authority sends a request to the appropriate international referral recipient (IRR) to have an examiner assigned to the case and informs the examiner of any significant differences between the U.S. Competent Authority’s proposed negotiating position and Examination’s position.

The U.S. Competent Authority secures a MAP report from Examination. A MAP report contains factual and technical information on an adjustment that the U.S. Competent Authority may use to discuss the issue with a treaty partner and to develop a negotiating position for the issue. More information on the MAP report can be found in IRM 4.46.6, LB&I Examination Process, Workpapers and Reports Resources.

The U.S. Competent Authority presents a position paper to the foreign competent authority. A position paper states the U.S. Competent Authority’s recommended course of action for a MAP request. The U.S. Competent Authority endeavors to provide an initial position paper to the foreign competent authority within six months of receipt from the taxpayer of all information necessary to analyze the case. This timeline may be updated as needed based on the facts and circumstances of a particular case.

The U.S. Competent Authority’s position paper contains:

For competent authority issues that arise from a foreign initiated action, the U.S. Competent Authority requests a position paper from the foreign competent authority to evaluate the request. The U.S. Competent Authority then presents the U.S. position paper to the foreign competent authority.

The U.S. Competent Authority endeavors to respond to the foreign competent authority (in writing or verbally) within six months of receipt of the foreign competent authority’s initial position paper. This timeline may be updated based on the facts and circumstances of a particular case.

The U.S. Competent Authority typically engages in consultations with the foreign competent authority to determine the amount of correlative relief, if any, that should be granted. If the U.S. Competent Authority is satisfied that the foreign initiated action is justified, correlative relief may be granted without a consultation.

The U.S. Competent Authority requests an evaluation of the issue(s) from Examination, if necessary. An evaluation provides Examination’s opinion about adjustments proposed by a foreign tax authority. Evaluations are not typically requested for recurring issues or small adjustments.

When a competent authority request or issue arises from an open examination proceeding, the U.S. Competent Authority forwards a copy of the MAP request to the appropriate IRR, with a copy to the IRR’s territory manager.

When a competent authority request or issue did not arise from an open examination proceeding, Examination has notice that the U.S. Competent Authority has jurisdiction over the related competent authority issue affecting a tax return by the competent authority analyst or team leader entering a ‘TC 971 AC 080’ activity code on the taxpayer account in the Master File for the return year (i.e., this activity code indicates the return(s) has an accepted, unresolved/open competent authority request associated with it). The U.S. Competent Authority analyst or team leader makes a request to add this activity code by using Form 3177, Notice of Action for Entry on Master File. See IRS Document 6209 (IRS Processing Codes and Information), Section 8C (Master File Codes) Subsection 9 (TC 971 Action Codes) for additional information.

Additional information on the coordination between the U.S. Competent Authority and Examination can be found in IRM 4.60.2, Mutual Agreement Procedures and Report Guidelines.

The U.S. Competent Authority notifies the foreign competent authority in the affected treaty country of the MAP request.

The U.S. Competent Authority notifies and (where appropriate) consults with the foreign competent authority before deciding to accept or decline a MAP request.

The U.S. Competent Authority consults with the foreign competent authority, as necessary, to discuss or clarify specific issues throughout the MAP process. All such discussions are documented in the case file to provide a historical summary for ease of case administration and for record-keeping purposes.

The U.S. Competent Authority negotiates the case with the foreign competent authority or U.S. territory tax authority. The U.S. Competent Authority engages in discussions with other competent authorities in a principled, fair, and objective manner, with each case being decided on its own merits and not by reference to any balance of results in other cases.

The U.S. Competent Authority communicates with taxpayers to provide an opportunity to correct or remedy any deficiencies in the MAP request or subsequent submissions during the MAP process.

The U.S. Competent Authority provides a status update to U.S. taxpayers (via telephone, email, or letter) after each substantial MAP discussion and at the conclusion of the case. The update does not provide details of the government-to-government discussions, which are generally protected from disclosure under the applicable U.S. tax treaty or coordination agreement and IRC 6105 . Rather, the update gives the taxpayer a general sense of the direction of its case, and if possible, an estimation of the time needed to resolve the case.

The U.S. Competent Authority tracks the case status on the Issue Management System (IMS) and, if applicable, coordinates with the foreign competent authority to track the case milestones (start date, milestone 1 (if applicable), end date, and outcome) for the Organisation for Economic Co-operation and Development (OECD) MAP statistics reporting framework purposes. The U.S. Competent Authority reports its MAP statistics in accordance with the OECD reporting framework requirements no later than May 31 of the following calendar year, for publication on the OECD website. See Organisation for Economic Co-Operation and Development, BEPS Action 14 on More Effective Dispute Resolution Mechanisms (2023) for additional information.

The U.S. Competent Authority staff submits all documentation requiring the signature of the U.S. Competent Authority for review by the TAIT or APMA manager(s) supervising the MAP case and by the U.S. Competent Authority or their delegate. This review process is necessary to confirm the U.S. Competent Authority’s review and approval of formal communications to other competent authorities, U.S. Competent Authority position papers, disposition memoranda, and MAP case closing letters to taxpayers and foreign competent authorities.

Upon the taxpayer’s acceptance or rejection of the terms of a tentative competent authority resolution, the U.S. Competent Authority proceeds to formally close the case.

The U.S. Competent Authority prepares a disposition memorandum, which is forwarded to the appropriate IRR (or Examination office in some circumstances), with a copy to the IRR’s territory manager, for implementation. A disposition memorandum is prepared for all MAP cases. The disposition memorandum is signed by the U.S. Competent Authority or their delegate. Both Examination and the taxpayer are responsible for implementing the terms of the resolution set out in the disposition memorandum. To the extent authorized under the applicable tax treaty, the competent authority resolution is implemented even if such implementation otherwise would be barred by an applicable domestic period of limitations or other procedural limitation. In certain circumstances, the IRS may request the taxpayer to execute a closing agreement reflecting the terms of the competent authority resolution.

The U.S. Competent Authority prepares and transmits closing letters summarizing the MAP agreement to the taxpayer and the foreign competent authority. The U.S. Competent Authority and the foreign competent authority exchange closing letters confirming the terms of the MAP agreement. In cases where the taxpayer is eligible for a refund of U.S. tax pursuant to the MAP agreement, the taxpayer may be required to submit an original or amended U.S. income tax return to claim the refund. The closing letter to the taxpayer provides implementation instructions, including, but not limited to, the address where the taxpayer should mail an original or amended U.S. income tax return to claim a refund of U.S. tax pursuant to a MAP agreement. A copy of the U.S. Competent Authority closing letter to the taxpayer must be attached to any U.S. income tax returns filed pursuant to the MAP agreement.

The U.S. Competent Authority endeavors to resolve a MAP case within two years from the date of acceptance of the taxpayer’s MAP request. This timeline may be updated depending on the facts and circumstances of a particular case.

The U.S. Competent Authority also aims to consider a MAP case as efficiently as possible. During a MAP case, the U.S. Competent Authority may request information from a foreign competent authority. Before requesting information from a foreign competent authority, the U.S. Competent Authority will first exhaust domestically available information. To facilitate efficient communication, the U.S. Competent Authority engages in secure, electronic communication when possible, consistent with cybersecurity and privacy policies and considerations. When possible, the U.S. Competent Authority attempts to negotiate and resolve MAP cases prior to face-to-face meetings with foreign competent authorities.

For a MAP case that has exceeded, or is likely to exceed, a reasonable amount of time, delegates of the U.S. Competent Authority and the foreign competent authority may undertake a review of the case to determine the reasons for the delay and agree on an approach to ensure the efficient completion of the case.

If the U.S. Competent Authority and a foreign competent authority do not reach a competent authority resolution, the MAP case may be eligible for resolution through arbitration under the terms of the applicable U.S. tax treaty. In treaties with arbitration provisions, the MAP article requires that the competent authorities refer certain MAP cases to mandatory arbitration in the event direct consultation does not lead to a competent authority resolution within a prescribed amount of time. The MAP article in these treaties sets forth detailed procedures regarding the resolution of cases that are eligible for arbitration as prescribed by the relevant treaty. Section 10 of Rev. Proc. 2015-40 (or successor guidance) addresses general procedural issues associated with mandatory arbitration. See the Competent Authority Arrangements website for the arbitration board operating guidelines for various countries.

In general, the U.S. Competent Authority will not accept or continue to consider a taxpayer’s competent authority request regarding any competent authority issue and taxable period designated for litigation with respect to the same taxpayer, or any competent authority issue and taxable period that are pending in a U.S. federal court and that were under IRS Appeals jurisdiction with respect to the same taxpayer before the commencement of the litigation (see generally Rev. Proc. 2015-40, sections 6.04 and 7.02(3)(d)).

In other cases where a taxpayer has made a competent authority request with respect to a taxable period involved in pending litigation concerning the federal tax liability of the taxpayer, the U.S. Competent Authority may accept, or continue to consider, the competent authority request after consulting with the Associate Chief Counsel (International).

During the competent authority process, a taxpayer may be asked to join the IRS in a motion to sever any competent authority issues, delay trial, or stay proceedings pending the outcome of the taxpayer’s competent authority case. A taxpayer may file a competent authority request with respect to a U.S. federal court’s final determination of its tax liability, but only for the purpose of seeking correlative relief from a foreign competent authority. Such final determinations include litigation settlements with the Office of Chief Counsel or the Department of Justice. See Rev. Proc. 2015-40, section 6.05 (or successor guidance) for additional information.

If applicable, in cases with U.S. withholding tax at issue, the U.S. Competent Authority confirms amounts of U.S. tax withheld by requiring the taxpayer to furnish Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding or, if necessary, other documentation (e.g., bank statements) verifying the amounts withheld. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Competent authority assistance may be available in cases of multilateral disputes involving three or more treaty countries. To proceed with a multilateral MAP request, the competent authorities of all affected treaty countries must accept the case.

TAIT and APMA are available for informal consultations with taxpayers (including consultations in which the taxpayer chooses to be anonymous) regarding any competent authority issue. Informal consultations may be conducted by telephone, email, letter, or in person. Only general information is provided to taxpayers during informal consultation (e.g., general guidance, procedural requirements, or best practices). Taxpayer-specific guidance, return filing instructions, or a U.S. Competent Authority position is not provided. Any advice provided through such consultations is general advice only and is not binding on the IRS. See Rev. Proc. 2015-40, section 2.03 (or successor guidance) for additional information.

A taxpayer may request that the terms of a competent authority resolution for a given taxable period be extended to include subsequent taxable periods. After reviewing the taxpayer's request, the U.S. Competent Authority:

The U.S. Competent Authority may also request that a taxpayer expand the scope of its competent authority request to include ACAP years.

SAP will be initiated only upon a request made by a taxpayer in accordance with Rev. Proc. 2015-40, section 6.04(2)(b).

SAP may be used when:

After filing a competent authority request, a taxpayer may request SAP review in a separate written submission filed no later than 60 days after the taxpayer receives notification that the U.S. Competent Authority has accepted its competent authority request. See Rev. Proc. 2015-40, section 6.04(2)(b), for additional information.

Rev. Proc. 2015-40 does not limit the ability of a taxpayer to obtain Appeals review of a competent authority issue that remains unresolved after the competent authority process has concluded. See Rev. Proc. 2015-40, section 6.04(4).

The U.S. Competent Authority will not accept or continue to consider a request for SAP when:

The Chief, Independent Office of Appeals, forwards a copy of the SAP request to the appropriate Director, Appeals who assigns an Appeals officer to the case. The assigned Appeals officer will:

The U.S. Competent Authority has sole discretion to decide whether to accept the taxpayer’s request for SAP.

The U.S. Competent Authority has jurisdiction for the competent authority issue when SAP is involved and is responsible for:

As defined in Rev. Proc. 2015-41, an APA is a binding agreement between the taxpayer and the IRS on the methods ("covered method(s)" ) for resolving one or more issues ("covered issue(s)" ) eligible to be covered by such an agreement, including issues arising under IRC 482 and other issues for whose resolution transfer pricing principles are relevant, which in a particular case could include issues arising under IRC 367(d), issues arising under the business profits and associated enterprises articles of U.S. tax treaties, and the determination of the income effectively connected with the conduct of a trade or business within the United States.

The execution of an APA is designed to be a voluntary, problem-solving process, conducted in a principled and cooperative manner, for the resolution of covered issues on a prospective basis. The APA process increases the efficiency of tax administration by encouraging taxpayers to come forward and present to APMA all of the facts necessary for a proper evaluation of their proposed covered issues and to work with APMA towards a resolution of such issues in a spirit of openness and cooperation. The voluntary and prospective nature of the APA process lessens the burden of compliance by giving taxpayers and the IRS greater certainty into the future regarding covered issues, and it promotes the principled resolution of these issues by allowing for their discussion and resolution in advance, before the consequences of such resolution are fully known to either taxpayers or the IRS. As such, the APA process is intended to address issues that are ongoing in nature or have already arisen (or, based on firm commitments, are expected to arise).

There are three types of APAs:

APA requests and the APA process are governed by Rev. Proc. 2015-41. A taxpayer’s APA request will include one or more covered issues, as applied to certain proposed taxable years, and (in the case of bilateral and multilateral APA requests) involve one or more foreign competent authorities.

APMA is responsible for the following:

Section 3.02(4) of Rev. Proc. 2015-41 describes when a pre-filing memorandum is required before a taxpayer submits an APA request. Where a pre-filing memorandum is optional (see Rev. Proc. 2015-41, section 3.02(5)), APMA will recommend a taxpayer seeking an APA to submit a pre-filing memorandum to allow the taxpayer to benefit from a Pre-filing Memorandum Review.

The Pre-filing Memorandum Review provides a rapid and high-level process through which APMA may provide taxpayers with information regarding the suitability and conditions for acceptance of an APA request for consideration and alternative workstreams to achieve transfer pricing certainty. The Pre-filing Memorandum Review will be conducted by an APMA team leader or economist ("the APMA team leader" ) in accordance with the review procedures at Exhibit 4.60.3-2, Procedures for Pre-filing Memorandum Review.

Based on the results of the review, the APMA team leader will make a written recommendation to the APMA FLM for taxpayer consideration. The recommendation will be one of the following:

The APMA FLM will consider the APMA team leader’s recommendation and, after obtaining concurrence from their assistant director (AD), communicate APMA’s views regarding the suitability of and conditions for acceptance of an APA request to the taxpayer. To allow APMA to collect information and data for monitoring consistency and validating effectiveness of the process, documentation of the APMA team leader’s written recommendation, the APMA FLM’s decision, the AD’s concurrence and communication with the taxpayer will be included in the IMS case. If the decision is different from the recommendation of the APMA team leader, support for that decision should be included in the APMA IMS case.

The Pre-filing Memorandum Review should generally be completed, and recommendation made to the taxpayer, within four weeks of the submission date of the pre-filing memorandum or the date when additional information requested by APMA is submitted to APMA, whichever is later.

Rev. Proc. 2015-41, section 3.04, and the Appendix define the required form and content for an APA request to be considered complete. Upon receipt of a substantially complete APA request, APMA will review it to determine whether the APA workstream is best suited to successful resolution to achieve certainty for the proposed covered issues.

The APA Request Review will be conducted by an APMA team leader in accordance with the review procedures at Exhibit 4.60.3-3, Procedures for APA Submission Review. A TAIT analyst may be consulted or assigned to address non-transfer pricing treaty issues raised by the request.

Based on the results of the review, the APMA FLM will make a written recommendation to their APMA AD regarding suitability of the proposed APA for potentially achieving successful conclusion.

The APMA team leader will document their analysis and recommendation to the IMS case. The APMA FLM will aim to develop a consensus; however, in the absence of consensus, the APMA FLM will decide what recommendation to send to the APMA AD. The APMA FLM will document the recommendation, including reasons for not accepting the APMA team leader’s recommendation resulting in a lack of consensus in the IMS case. The APMA FLM’s recommendation will be one of the following:

The APMA FLM will document the recommendation in the IMS case.

The APMA AD will review the APMA FLM recommendations and will determine whether to recommend accepting or declining the APA request.

If the APMA AD concurs with the APMA FLM recommendation to accept an APA request into the APA program, the APMA FLM will begin the APA process.

In certain situations, (e.g., APMA’s experience with the treaty partner in MAP is better than the corresponding APA experience, or there is favorable support for consideration of the proposed covered issues in International Compliance Assurance Program (ICAP)), the APMA AD may recommend declining the APA request even when the APMA FLM has recommended acceptance. If the APMA AD recommends declining the APA request, they will elevate this recommendation to the APMA director for concurrence. If the APMA AD concurs with the APMA FLM’s recommendation to decline to initiate the APA process with the taxpayer, the APMA AD will elevate this recommendation to the APMA director for concurrence.

The APMA director will review all APMA AD recommendations to decline an APA request.

When the APMA director concurs with the APMA AD’s recommendation to decline an APA request, the APMA AD will communicate the decision and provide a summary of the basis for the decision to the taxpayer orally. APMA will then send a formal decision letter to the taxpayer in accordance with Rev. Proc. 2015-41, section 4.01. The APMA AD will consult with the TPP territory manager regarding APMA’s decision to decline.

If the APMA director decides to proceed with the APA process against the APMA AD’s recommendation to decline, the APMA FLM will begin the APA process per existing procedures. In such a case, the APMA director will provide documentation of their decision to the APMA AD, FLM, and team leader for insertion in the IMS case.

If the APMA AD does not accept the recommendation of the APMA FLM, the APMA AD will elevate an alternate recommendation to the APMA director along with the APMA FLM recommendation and the corresponding support for both recommendations for final decision by the APMA director. Documentation supporting the APMA AD’s recommendation and the APMA director’s decision should be included in the APMA IMS case.

The Request Review and Acceptance process should be completed within eight weeks of the filing date of the completed taxpayer APA request.

CBA revenue agents and TPP tax law specialists or economists may be included on an APA team to assist with an APA request. The exact scope of the participation that an assigned CBA or TPP team member will have depends upon the specifics of the case and on coordination and collaboration between APMA and the CBA or TPP team member management.

A CBA and TPP team member will be assigned to an APA team pursuant to a request made by the APMA team leader at the outset of the APA process. The request will be made by the APMA team leader through a communication to the appropriate IRRs for CBA and TPP.

The assigned CBA and TPP team member will be invited to participate in most phases of the APA process after APMA has accepted the taxpayer’s APA request. The APA process will begin with an opening conference after the taxpayer has filed its APA request and APMA has accepted the APA request.

Ways in which the CBA and TPP team member can be involved in and contribute to the APA process as part of the APA team include providing their perspective on procedural matters, such as the taxpayer’s current or past audit history, on the taxpayer’s proposed covered issue(s) and method(s), and on any interrelated issues or matters, such as the taxpayer’s involvement in transactions with other affiliates that are similar to, or impacted by, those proposed to be covered by the APA. The CBA and TPP team member will also play an important role in coordinating and following through with CBA and TPP in the rare instance in which the APA process ends without an executed agreement.

The APMA team leader will coordinate and collaborate with the taxpayer and the assigned CBA and TPP team member to ensure that the requirements of Rev. Proc. 2015-41 are fulfilled throughout the APA process.

As noted in Rev. Proc. 2015-41, section 2.03(3), throughout the APA process, the taxpayer and the IRS will execute a consent agreement, as necessary, to extend the period of limitations for assessment of tax for each proposed APA year. As the APA process progresses, the taxpayer must submit executed consents to the IRS to extend the period of limitations for assessment of tax.

For APA cases not currently under examination, GPA/PTE examination team members are integral to APA teams for (i) executing consent agreements, as necessary, to extend the period of limitations for assessment (Form 872) or to make partnership adjustments (Form 872-M) for each proposed APA year, and (ii) monitoring statute of limitations. GPA/PTE examination team members will be assigned to an APA team pursuant to a request made by the APMA team leader at the outset of the APA process. The assigned examination team member will be invited to participate in most phases of the APA process after APMA has accepted the taxpayer’s APA request. For APA cases already under examination, the GPA/PTE examination team member will collaborate with APMA to monitor statutes as part of the regular examination procedures. See Rev. Proc. 2015-41.

Upon completion of the APA process, the GPA/PTE examination team member will continue to control and monitor statutes for years under examination.

With respect to discretionary LOB requests, TAIT:

An applicant that received a favorable discretionary LOB determination must file a triennial statement to keep that determination in force.

The statement must declare that:

The statement must contain the following declaration: “Under penalties of perjury, I declare that I have examined this statement and accompanying documents, if any, and that, to the best of my knowledge and belief, this statement contains all relevant information relating to the triennial reporting requirement, and that the representations in this statement are true, correct, and complete.” The statement also must include any other representations or items that the U.S. Competent Authority may instruct the applicant to include.

The applicant must file the first triennial statement with TAIT no later than three years from the date of the letter notifying the applicant of the U.S. Competent Authority’s determination to grant discretionary benefits, or by such other date to which the U.S. Competent Authority and the applicant agree. The applicant must file each additional triennial statement with TAIT no later than three years after the most recent triennial statement, or by such other date to which the U.S. Competent Authority and the applicant agree.

The U.S. Competent Authority will review each triennial statement and notify the applicant if any information must be clarified or supplemented. Any request the applicant receives to clarify or supplement information in a triennial statement does not constitute an examination or the commencement of an examination for purposes of IRC 7605(b) or any other provision of the Code. Failure to timely file a triennial statement will result in a termination of the grant of discretionary benefits from the due date of the triennial statement. See Rev. Proc. 2015-40, section 3.06(2), for additional information.

Rev. Proc. 99-32 accomplishes the following:

The provisions of Rev. Proc. 99-32 apply to U.S. taxpayers in the following situations:

The relevant office within the IRS with jurisdiction over the case is responsible for determining:

A U.S. taxpayer seeking the benefits of Rev. Proc. 99-32 must file a written request with the DFO before closing action is taken on the primary adjustment.

In applying the provisions of section 5.01 of Rev. Proc. 99-32, the term "closing action" includes the first occurrence of any of the following:

When the issue team proposes an IRC 61, IRC 162, or IRC 482 adjustment, the taxpayer will be advised of the following:

If the examination of the primary taxpayer results in adjustments under IRC 482, the examination of the correlative U.S. taxpayer is conducted concurrently by the issue team.

If the correlative adjustment affects the U.S. tax liability of the correlative taxpayer for any pending tax year, a separate report covering those years should be prepared by the issue team. The report should be prepared concurrently with the primary report, with the understanding that it may be sent to the correlative taxpayer.

The examiner will attach Form 3198, Special Handling Notice for Examination Case Processing, to the case jacket of the correlative adjustment taxpayer to ensure that overpayments resulting from the correlative adjustments are not scheduled and refunded to the taxpayer. The Form 3198 will note the need to delay making a refund to the correlative adjustment taxpayer until the primary adjustment taxpayer has paid the deficiency resulting from the IRC 482 adjustment.

Rules regarding the unauthorized disclosure of information apply to IRC 482 adjustments, despite the relationship between primary and correlative taxpayers. The correlative report should not disclose tax return information of the primary taxpayer except to the extent necessary to explain the correlative adjustment.

The report to the primary taxpayer will include one of the following statements:

Taxpayers who seek correlative relief for foreign initiated adjustments should make a request to the U.S. Competent Authority for assistance. However, if the adjustment involves years under the jurisdiction of examination or Appeals, taxpayers should seek to obtain relief from these offices. If the adjustment involves a reallocation of income or deductions involving a related person in a country that has a tax treaty with the U.S., the taxpayer should be advised to contact U.S. Competent Authority. Failure to request assistance from the U.S. Competent Authority may result in denial of correlative relief with respect to the issue, including any otherwise available foreign tax credits.