The Internal Revenue Service, in Revenue Procedure 2022-10, has just announced a pilot program, effective immediately, for fast-tracking private letter rulings (PLRs). Under the new pilot program, eligible corporate taxpayer requests that are solely or primarily within the jurisdiction of the IRS Office of Associate Chief Counsel (Corporate) could be processed within 12 weeks of being received.
The program comes following the IRS taking heat from practitioners regarding the lag in response times. If successful, the 18-month pilot program, which runs through July 14, 2023, or until a superseding revenue procedure is released, will become permanent.
Requirements
To request fast-track processing, the taxpayer must first request a presubmission conference with the IRS. Prior to the conference, the taxpayer will need to provide a statement explaining the reasons for requesting fast-track processing, the desired processing time (if shorter or longer than 12 weeks), any facts that could affect the feasibility of fast-track processing and whether any of the issues are under the jurisdiction of any other associate offices.
Factors used to determine feasibility of a request include: the completeness of the taxpayer’s request and supporting documentation, the adequacy of the draft PLR and the need for cooperation with other associate offices. Requests that also seek PLRs within the jurisdiction of other associate offices will be subject to those other offices agreeing to fast-track processing.
Those taxpayers with PLRs already pending on Jan. 14 (the date the pilot program went into effect) may seek fast-track processing under Rev. Proc. 2022-10 by agreeing to follow the pilot program procedures, with no presubmission conference required.
Pilot Program Replaces Expedited Handling
The pilot program for fast-track processing replaces the expedited handling request procedures for eligible PLRs. The IRS notes that “Fast-track processing is not available for requests for extension of time to make elections or other applications for relief under section 301.9100 of the Procedure and Administration Regulations (26 CFR part 301) (section 9100 relief).” Those requests may, however, seek expedited handling under Rev. Proc. 2022-1.