Part 7. Rulings and Agreements

Chapter 40. LB&I Initiatives with Other Business Units

Section 1. Industry Issue Resolution (IIR) Program

7.40.1 Industry Issue Resolution (IIR) Program

Manual Transmittal

March 30, 2026

Purpose

(1) This transmits revised IRM 7.40.1, LB&I Initiatives with Other Business Units, Industry Issue Resolution (IIR) Program.

Material Changes

(1) IRM 7.40.1.1, Program Scope and Objectives - Updated paragraph (1), Purpose. Added the following paragraphs per requirements of IRM 1.11.2.2.4(4):

  • paragraph (2) - Audience

  • paragraph (3) - Policy Owner

  • paragraph (4) - Program Owner

  • paragraph (5) - Primary Stakeholders

  • paragraph (6) - Contact Information

(2) IRM 7.40.1.1.1, Background - Updated background information for the IIR program.

(3) IRM 7.40.1.1.2, Authority - Updated paragraph (1) and added paragraphs (2) and (3) to list other respective authorities.

(4) IRM 7.40.1.1.3, Roles and Responsibilities - Updated title to "Roles and Responsibilities" and expanded the various roles and responsibilities for the IIR program.

(5) IRM 7.40.1.1.4, Program Management and Review - Renamed section from "Program Objectives and Review" and added a table describing the SPG management and review process.

(6) IRM 7.40.1.1.5, Program Controls - Changed title to "Program Controls" and moved content to IRM 7.40.1.1.7, Related Resources. Updated content in this section to add program controls per requirements of IRM 1.11.2.2.4(4).

(7) IRM 7.40.1.1.6, Terms and Acronyms - Added a table for acronyms and a table for terms per requirements of IRM 1.11.2.2.4(4).

(8) IRM 7.40.1.1.7, Related Resources - Added section with content from IRM 7.40.1.1.5.

(9) IRM 7.40.1.2, IIR Program - Added subsection to provide a description of the IIR program. Content was moved from IRM 7.40.1.1.4 and expanded to include a "Selection and Notification" stage of the IIR process.

(10) All subsequent subsections have been renumbered based on the addition of IRM 7.40.1.2, IIR Program.

(11) IRM 7.40.1.3.1, Issue Identification - Clarified the wording within this section.

(12) IRM 7.40.1.3.2.2.2, SB/SE Procedures - Added section to provide the procedures that should be followed by SB/SE analysts related to the IIR program.

(13) IRM 7.40.1.3.2.2.3, LB&I Procedures - Added that IIR submissions accepted into the program are publicly announced on IRS.gov.

(14) IRM 7.40.1.3.3, Issue Notifications - Added that IIR submissions should not include confidential or taxpayer specific information as the IIR requests are available for public inspection and copying.

(15) IRM 7.40.1.4, IIR Planning and Organization - Updated presentation of information for clarity.

(16) IRM 7.40.1.4.2.1.1, IIR Process and Target Completion Date - Added the availability of resources as an additional factor affecting the target timeframes.

(17) IRM 7.40.1.4.2.2.1, IIR Issue Review - Updated presentation of information for clarity.

(18) IRM 7.40.1.4.1, Establishing an IIR Exam Team – Added link to NTEU letter, added TE/GE activity code and removed Appeals activity code.

(19) IRM 7.40.1.6, IIR Exam Teams Reaching Agreement on Resolution - Removed the requirement of an in-person meeting.

(20) IRM 7.40.1.7.1.4, Administrative Guidance Clearance - Removed reference to IRM 4.51.2.6.2 as the guidance has become obsolete and removed from this IRM.

(21) The following exhibits were removed and replaced with website links to the supplemental guidance:

  1. Exhibit 7.40.1-1, NTEU Letter of Understanding, link provided at IRM 7.40.1.4.1(5).

  2. Exhibit 7.40.1-2, Federal Advisory Committee Act, link provided at IRM 7.40.1.4.2.1.5(1).

  3. Exhibit 7.40.1-3, Interacting with Outside Stakeholders - Frequently Asked Questions, link provided at IRM 7.40.1.4.2.3.2(2).

  4. Exhibit 7.40.1-4, Lessons Learned from Prior Industry Issue Resolution Teams, link provided at IRM 7.40.1.5(1).

(22) Various editorial changes throughout the IRM for clarification. Reviewed and updated grammar, plain language, titles, website links, and other editorial changes as needed.

(23) The term IIR exam team replaced IIR team throughout the IRM and the term IIR exam team was defined in IRM 7.40.1.1.6, Terms and Acronyms.

(24) Replaced LB&I Division Counsel and SB/SE Division Counsel with L&A Division Counsel throughout the document to reflect the consolidation of these two Division Counsels in October 2024.

Effect on Other Documents

IRM 7.40.1, LB&I Initiatives with Other Business Units, Industry Issue Resolution (IIR) Program, dated August 26, 2020, is superseded.

Audience

LB&I, SB/SE, TE/GE, the IRS Independent Office of Appeals, and Chief Counsel

Effective Date

(03-30-2026)

Ronald H. Hodge II
Assistant Deputy Commissioner Compliance Integration
Large Business and International Division

7.40.1.1 (03-30-2026)

Program Scope and Objectives

  1. Purpose: The Industry Issue Resolution (IIR) program is designed to address frequently disputed or burdensome tax issues that affect a significant number of taxpayers and other entities under the jurisdiction of the Large Business and International (LB&I), Small Business/Self-Employed (SB/SE), and Tax Exempt and Government Entities (TE/GE) operating divisions (collectively referred to as "taxpayers" in this IRM) by issuing published legal or administrative guidance. The issues addressed are selected from issues submitted by taxpayers or their representatives, associations, and other affected parties. For each issue selected for the program, a resolution team, generally composed of IRS, Chief Counsel, and Treasury personnel, is assembled to gather and analyze relevant information, and recommend a resolution of the issue.

  2. Audience: These IRM procedures apply to IRS employees responsible for the IIR program including:

    • LB&I, SB/SE, and TE/GE

    • Associate Chief Counsel and Division Counsel attorney(s) subject matter experts

    • Treasury Department of Tax Policy

  3. Policy Owner: LB&I Policy under the Strategy, Policy & Governance (SPG) office in the Assistant Deputy Commissioner Compliance Integration (ADCCI) organization.

  4. Program Owner: LB&I Strategy & Governance under the SPG office in the ADCCI organization.

  5. Primary Stakeholders: IRS personnel involved in the IIR program.

  6. Contact Information: For all IIR inquiries, email the LB&I IIR coordinator at iir@irs.gov. To recommend changes or make any other suggestions to this IRM section, contact the IRM author, or see SPDER’s IMD Contact list by referencing guidelines provided in IRM 1.11.6.5, Providing Feedback About an IRM Section – Outside of Clearance. A request or inquiry can also be made at the LB&I Policy Gateway.

7.40.1.1.1 (03-30-2026)

Background

  1. The IIR program started as a pilot in 2000 and became a permanent program in 2002. It is designed for taxpayers and other entities under the jurisdiction of the LB&I, SB/SE, and TE/GE operating divisions to submit issues for consideration. The objective of the IIR program is to identify and resolve frequently disputed or burdensome tax issues that are common to a significant number of taxpayers. The IRS and the Office of Chief Counsel aim to resolve issues through pre-filing guidance, rather than post-filing examinations.

  2. If an IIR program request is selected, the IRS will establish an IIR exam team to analyze the issue and develop appropriate guidance. IIR exam team members will include appropriate personnel from the requester and from the IRS. IRS team members may be selected from LB&I, SB/SE, or TE/GE operating divisions, the IRS Independent Office of Appeals (Appeals), the Office of Chief Counsel, and the Treasury Office of Tax Policy. An issue may not be selected for the IIR program if the requester does not provide appropriate personnel to participate as IIR exam team members.

7.40.1.1.2 (03-30-2026)

Authority

  1. Rev. Proc. 2016-19 (or its successor), provides guidelines and procedures for the program and expands the program to include TE/GE entities. It also allows issues to be submitted at any time throughout the calendar year for consideration under this program.

  2. Notice 2005-59 provides additional criteria for evaluating IIR program issues for accountable plans.

  3. See IRM 1.2.1.2.36, Policy Statement 1-236, Fairness and Integrity in Enforcement Selection for additional information.

7.40.1.1.3 (03-30-2026)

Roles and Responsibilities

  1. LB&I, SB/SE, and TE/GE operating divisions share responsibility for the IIR program.

  2. Appeals, Chief Counsel, and the Treasury Department also have roles in the program.

  3. ADCCI has executive oversight for the IIR program and is responsible for the overall policies and procedures in this IRM.

  4. The SPG office in ADCCI manages the program with the assistance of the LB&I IIR coordinator.

  5. The IIR program involves different operating divisions, Appeals, the Associate Chief Counsel, and the Treasury Office of Tax Policy. Below are specific duties related to each role in the process.

  6. The LB&I IIR coordinator has the following duties:

    1. Monitors the IIR organizational mailbox (iir@irs.gov)

    2. Forwards any non-LB&I submissions to the appropriate office

    3. Assists participants and other interested parties as needed

    4. Facilitates IIR project selection for LB&I

    5. Facilitates securing resources, if field specialists are not available

    6. Monitors and troubleshoots, when appropriate

    7. Sets objectives, measures, and reports on LB&I program results

    8. Requests, coordinates, and monitors analyses and comments from IIR program submission reviewers

  7. The SB/SE IIR coordinator has the following duties:

    1. Communicates with the applicable technical advisor(s)

    2. Coordinates internal meetings with their Business Operating Division (BOD) Commissioner (or delegate), directors, counsel, and related parties to determine if an issue should be accepted

    3. Monitors the status of the process

  8. SB/SE technical advisors have the following duties:

    1. Review and consider the submission

    2. Prepare a short cover memo summarizing the issue

  9. The TE/GE IIR coordinator has the following duties:

    1. Communicates with the applicable technical advisor(s)

    2. Coordinates internal meetings with their BOD Commissioner (or delegate), directors, counsel, and related parties to determine if an issue should be accepted

    3. Monitors the status of the process

  10. TE/GE technical advisors have the following duties:

    1. Review and consider the submission

    2. Prepare a short cover memo summarizing the issue

  11. LB&I, SB/SE, and TE/GE executives have the following duties:

    1. Prepare a notification of acceptance or rejection to the requester

    2. Discuss the plans for orientation and meetings with the requester if the issue is selected

    3. Notify the public of the IIR selections

    4. Communicate with outside stakeholders

    5. Approve IIR projects

    6. Inspect the guidance requests posting on the Freedom of Information Act (FOIA) library

    7. Plan the formal industry team orientation

    8. Approve drafts of the published guidance

    9. Present the guidance package to the appropriate BOD Commission for approval

    10. Develop a communication plan to announce the IIR resolution guidance

  12. The IIR exam team includes LB&I, SB/SE, TE/GE revenue agents, tax law specialists, engineers, subject matter experts, and technical advisors. The following duties are specific to the IIR exam team:

    1. Participates in orientation and training sessions

    2. Develops the IIR Work Plan

    3. Sets the IIR target completion date

    4. Discusses the IIR process and roles and responsibilities of IIR exam team members

    5. Establishes ground rules for the team

    6. Explains the IIR Work Plan and administrative tasks

    7. Determines responsibilities and processes for conducting and recording meetings as well as preparing and distributing the minutes

    8. Assigns team members for setting up and conducting briefings, and completes monthly reports

    9. Determines if outside experts are needed

    10. Evaluates facts and positions of the issue

    11. Consults with Appeals, counsel, and Chief Counsel as needed

    12. Consults with outside stakeholders for a better understanding of the issue

    13. Discusses the issue with other industries and trade associations that may be affected by the issue

    14. Determines the IRS’s examination practices for the issue

    15. Determines industry practices for the issue

    16. Recommends a resolution through published or administrative guidance and consults with the Treasury Department of Tax Policy when published guidance will be issued

    17. Keeps all IIR exam team members and the industry apprised of any legislation updates

    18. Assists in monitoring and evaluating the process

    19. Organizes and maintains IIR exam team records

    Note:

    Although other personnel may be referenced as the IIR exam team throughout the IRM, the roles and responsibilities listed in this paragraph only apply to the personnel referenced within this paragraph.

  13. Appeals has the following duties:

    1. Surveys Appeals personnel to determine who is currently involved with the issue

    2. Provides guidance to IIR exam team relating to Appeals procedures to follow as needed

    3. Responds to questions regarding tax laws and court decisions, as appropriate for Appeals involvement in the IIR

  14. Counsel has the following duties relating to a review of an IIR issue:

    1. Serves as the subject matter expert

    2. Serves as the primary drafter of the proposed published guidance

    3. Responds to questions regarding tax laws and court decisions, as appropriate

    4. Participates in orientation, if appropriate

  15. The Associate Chief Counsel team has the following duties relating to publishing guidance:

    1. Processes the formal clearance procedures for published guidance

    2. Follows up internally on any pending legislation

    3. Coordinates the release of the guidance with the IIR exam team manager and counsel

    4. Coordinates press releases, if needed

  16. Treasury Office of Tax Policy has the following duties:

    1. Reviews the normal clearance procedures for published guidance

    2. Approves published guidance clearance

7.40.1.1.4 (03-30-2026)

Program Management and Review

  1. SPG manages the IIR program through the following management and review process:

    Program Management and Review Description of Program Management and Review
    1) Program Report The IIR exam team is responsible for completing a monthly report and sending it to the LB&I IIR coordinator. The monthly report must include the following information:

    • A summary of the actions that have been accomplished since the last report, and the completion dates.

    • A summary of the actions in process and the target completion dates.

    • A summary of any other concerns.
    2) Program Information The IIR exam team is responsible for retaining the following information:

    • The collection of information used by the IRS to determine whether the issue is suitable for resolution under the IIR program and for resolution of the selected issues.

    • Books and records that may become material in federal tax administration.

    3) Program Effectiveness The following are used to determine the effectiveness of the IIR program:

    • Mission and program objectives are accomplished efficiently and effectively.

    • Reliable information is obtained and used in decision making.

    • Laws and regulations are followed.

    • Procedural requirements of the Federal Advisory Committee Act (FACA) are being followed by the IIR exam team.

    • Recommended technical position and guidance are determined and published.

7.40.1.1.5 (03-30-2026)

Program Controls

  1. The IIR program resolves frequently disputed or burdensome tax issues that affect a significant number of taxpayers by providing published guidance.

  2. The IIR’s goal is to provide clear guidance, thus reducing the time and expense of resolving issues on a case-by-case basis during tax examinations. This IRM assists with this goal by:

    • Providing information on business tax issues appropriate for IIR

    • Detailing how the IIR process works

    • Providing procedures on how to submit an IIR for consideration

7.40.1.1.6 (03-30-2026)

Terms and Acronyms

  1. The following table contains commonly used acronyms.

    Acronym Definition
    ADCCI Assistant Deputy Commissioner Compliance Integration
    BOD Business Operating Division
    CAM Change in Accounting Method
    CSC Compliance Strategy Council
    FOIA Freedom of Information Act
    FACA Federal Advisory Committee Act
    GSA General Services Administration
    IIR Industry Issue Resolution
    L&A Litigation & Advisory
    LOU Letter of Understanding
    OMB Office of Management and Budget
    SPG Strategy, Policy & Governance

  2. The following table contains commonly used terms found in this IRM:

    Term Definition
    Administrative Guidance Administrative guidance is a general term that refers to instructions to staff that is often issued on specific issues by a director-level official or above. For further information related to administrative guidance, see IRM 4.51.2, LB&I Administrative Guidance.
    IIR Exam Team The primary exam team members consist of those personnel who are identified in IRM 7.40.1.1.3(12), Roles and Responsibilities and are the only personnel who fall within the roles and responsibilities scope listed in this paragraph. However, requesters and other IRS personnel can be added to the IIR exam team as noted in IRM 7.40.1.1.1(2), Background and are included when referencing the IIR exam team (outside of the roles and responsibilities section of this IRM) if they have been selected to assist with a specific IIR program request.
    Litigation and Advisory (L&A) Division Counsel LB&I Division Counsel and SB/SE Division Counsel were consolidated into one new organization on October 6, 2024, and became L&A Division Counsel. All references to LB&I Counsel and SB/SE Counsel have been replaced with L&A Division Counsel throughout this IRM.
    Published Guidance The Treasury Department and Office of Chief Counsel provide legal guidance that establishes the IRS’s legal position. Published guidance plays an important role in increasing voluntary compliance by helping to clarify ambiguous areas of the tax law. It focuses on both resolving issues currently under examination and addressing issues that may arise in future years.
7.40.1.1.7 (08-26-2020)

Related Resources

  1. Additional IIR program information can be found at the following websites:

  2. IRM 4.46.5.4.3.1, Industry Issue Resolution (IIR).

7.40.1.2 (03-30-2026)

IIR Program

  1. The goal of the IIR program is to:

    • Issue guidance on frequently disputed tax issues

    • Establish a consistent position for the IRS

    • Reduce administrative burden for the IRS and for taxpayers

  2. The IIR process is designed to be expeditious and foster communication between the IRS and outside stakeholders. The IIR process consists of the following four stages to ensure guidance is issued in a timely manner:

    1. Stage 1: Issue Identification and Screening - In this stage, issues are identified by external stakeholders. The IRS also solicits suggestions for issues from taxpayers, representatives, and associations for the IIR program. Externally, business taxpayers, industry associations, and other interested parties may submit issues for resolution at any time. Issues are screened by the IRS. The screening process can last for several months depending on the nature of the issue identified.

    2. Stage 2: Selection and Notification - In this stage, the IRS notifies the requester once the IRS decides to accept or reject an IIR program request. For the review decision process, see IRM 7.40.1.3.3, Issue Notification. The IRS provides public notification of issues selected and reviewed for the program.

    3. Stage 3: Planning and Analysis - This stage includes planning and organization, fact finding and analysis, and recommendations for proposed guidance.

    4. Stage 4: Approval, Communication, and Evaluation - This stage includes clearance of the proposed guidance, communication of approved guidance, and solicitation and evaluation of feedback on the IIR process.

  3. Once an IIR is publicly announced, the goal is to issue guidance within 12 months. However, target timeframes are set by each team and vary based on the complexity of the issue.

  4. When an issue is part of an ongoing examination and is under IIR consideration or IIR selection, it should not be suspended until the potential new guidance is issued.

7.40.1.3 (11-01-2004)

IIR Project Selection

  1. The IIR program process begins with issue identification followed by review, selection, and notification of the IIR projects.

7.40.1.3.1 (03-30-2026)

Issue Identification

  1. Taxpayers, representatives, industry associations, and other affected parties can submit tax issues for resolution under the IIR program using the procedures in Rev. Proc. 2016-19 (or its successor).

  2. In general, a requester should be an organization or a group of entities that represents a significant number and cross section of the taxpayers with the particular tax issue(s).

    Example:

    A retail industry group that represents large, nationwide retailers as well as independent retailers might request pre-filing guidance through the IIR program on an IRC 263(a) capitalization issue common to all member retailers.

  3. Tax issues appropriate for the IIR program generally will have at least two of the following characteristics:

    • Proper tax treatment of a common factual situation is uncertain.

    • Uncertainty results in frequent, and often repetitive, examinations of the same issue.

    • Uncertainty results in taxpayer burden.

    • Frequent, and often repetitive, examinations that require significant resources from both the IRS and affected taxpayers.

    • Issue is significant and affects many taxpayers.

    • Issue requires extensive factual development.

    • Collaboration would facilitate proper resolution of the tax issue by promoting an understanding of a taxpayer’s views and business practices.

  4. Tax issues not appropriate for the IIR program include:

    • Issues unique to one or a small number of taxpayers.

    • Issues under jurisdiction of BODs other than LB&I, SB/SE, or TE/GE.

    • Transactions lacking bona fide business purpose, or transactions with a significant purpose of improperly reducing or avoiding federal taxes.

    • Transfer pricing or international tax treaty issues.

  5. See Notice 2005-59 for additional criteria for evaluating proposed IIR program issues for accountable plans.

  6. A set format is NOT required for submission of issues. Each submission should include:

    • A brief description of why the issue is appropriate for the IIR program.

    • An explanation of why there is a need for guidance.

    • Information on the number of taxpayers affected by the issue.

    • A description of how the requester relates to those taxpayers.

    • Contact information, in case additional information is needed.

    • Recommendation for a resolution of the issue.

  7. Outreach efforts should be made by IRS personnel (executives, subject matter experts, revenue agents, etc.) to encourage outside stakeholders to suggest problematic issues for resolution under the IIR program.

7.40.1.3.2 (03-17-2017)

Issue Screening and Selection

  1. LB&I, SB/SE, or TE/GE will review the issues submitted to their BOD. A determination will be made regarding whether the issue should be selected for the IIR program. The following are activities that take place while screening the issues and selecting IIR projects.

7.40.1.3.2.1 (03-17-2017)
Receipt of Applications and Initial Screening

  1. Submissions of issues for inclusion in the IIR program are received through the IIR mailbox at iir@irs.gov and forwarded to the appropriate BOD. Any issues clearly outside of LB&I, SB/SE, TE/GE, or the IIR program jurisdiction will be excluded from IIR consideration, and the requester will be notified by the LB&I IIR coordinator within five business days.

7.40.1.3.2.2 (03-17-2017)
Operating Division Project Selection

  1. If the issue is not excluded as described in IRM 7.40.1.3.2.1, the submission will be reviewed and a decision on whether to accept or reject will be made per the BOD’s processes.

7.40.1.3.2.2.1 (03-17-2017)
TE/GE Procedures

  1. The TE/GE IIR coordinator will forward a copy of the IIR program request to the technical advisor(s) for the TE/GE function with jurisdiction over the submitting industry group for the issue in the submission. The TE/GE IIR coordinator and the applicable technical advisor(s) will review and consider the submission and prepare a short cover memo summarizing the issue and the presence or absence of the factors in Rev. Proc. 2016-19 (or its successor). This should generally be done within six weeks.

  2. The TE/GE IIR coordinator will schedule a call for the TE/GE Commissioner, the appropriate TE/GE director, and TE/GE Division Counsel to determine if the IIR is ready for acceptance. The appropriate technical advisor(s) will also participate.

  3. The TE/GE IIR coordinator will monitor the status of their assigned IIRs.

7.40.1.3.2.2.2 (03-30-2026)
SB/SE Procedures

  1. The SB/SE IIR coordinator will forward a copy of the IIR program request to the technical advisor(s) for the SB/SE function with jurisdiction over the submitting industry group for the issue in the submission. The SB/SE IIR coordinator and the applicable technical advisor(s) will review and consider the submission and prepare a short cover memo summarizing the issue and the presence or absence of the factors in Rev. Proc. 2016-19 (or its successor). This should generally be done within six weeks.

  2. The SB/SE IIR coordinator will schedule a call for the SB/SE Commissioner, the appropriate SB/SE director, L&A Division Counsel to determine if the IIR is ready for acceptance. The appropriate technical advisor(s) will also participate.

  3. The SB/SE IIR coordinator will monitor the status of their assigned IIRs.

7.40.1.3.2.2.3 (03-30-2026)
LB&I Procedures

  1. Upon the receipt of an IIR submission, the LB&I IIR coordinator will forward a copy of the IIR submission, with a summary to the SPG team manager. The SPG team manager will forward the IIR submission to the SPG program manager and the ADCCI.

  2. The IIR submission and the summary will also be sent to L&A Division Counsel and the appropriate practice area(s) for review. Each of the parties will be asked to provide (via email), an analysis, any comments, and a recommendation on acceptance to the LB&I IIR coordinator, generally within six weeks.

  3. ADCCI will review the analysis, comments, and a recommendation on acceptance received, discuss with L&A Division Counsel and the practice area(s), if needed, and make a decision.

  4. After a decision is made, ADCCI will advise the LB&I IIR coordinator. The LB&I IIR coordinator will prepare a letter for the ADCCI to sign and send the letter to the requester notifying them whether the IIR has been accepted or rejected.

  5. IIR submissions that are accepted into the IIR program are publicly announced on IRS.gov within five business days from the issuance of a signed acceptance letter.

7.40.1.3.3 (03-30-2026)

Issue Notification

  1. The appropriate BOD executive (or designee) will notify the requester when the IRS decides to accept or reject an IIR program request. For those issues selected, the executive should begin discussing plans to have an industry orientation or a meeting with the requester.

  2. The IIR coordinator in the respective BOD will notify internal stakeholders, as appropriate, based on the issues selected.

  3. A news release will be issued to notify the general public of the IIR selections. A brief description of the issues selected (including contact information) will be posted to the websites listed in IRM 7.40.1.1.7, Related Resources; generally, within five business days of acceptance.

  4. While the IIR project is in process, any communications with outside stakeholders or internal communications regarding the project should be approved by the IIR exam team executive.

  5. Copies of the IIR guidance requests will be placed in the IRS FOIA Reading Room for public inspection and available for copying by interested parties as required in Rev. Proc. 2016-19 (or its successor). The IRS FOIA Reading Room is located at 1111 Constitution Avenue, NW, Room 1621, Washington, DC 20224.

    Caution:

    IIR submissions should not include confidential or taxpayer specific information that is not intended to be disclosed.

7.40.1.4 (03-30-2026)

IIR Planning and Organization

  1. During the planning and organization process:

    • An IIR exam team is formed for each issue.

    • Orientation sessions are held for both the team and the industry concerning the IIR process.

    • The IIR Work Plan is developed that addresses the issue.

7.40.1.4.1 (03-30-2026)

Establishing an IIR Exam Team

  1. For each IIR selected, an IIR exam team executive will be appointed to provide oversight and leadership. The IIR exam team executive will select an IIR exam team manager for the IIR exam team. The executive will work with the IIR exam team manager to assemble the team.

  2. Additional team members may include (but are not limited to) the following personnel:

    • LB&I, SB/SE, or TE/GE field personnel (revenue agent, tax law specialist, engineers, etc.)

    • LB&I, SB/SE, or TE/GE subject matter experts, tax law specialists, or technical advisors

    • L&A Division Counsel or TE/GE Division Counsel attorneys

    • Appeals

    • Associate Chief Counsel subject matter experts

    • Treasury Office of Tax Policy tax specialists

  3. Depending on the IIR exam team’s resolution strategy, a tax specialist from the Treasury Office of Tax Policy may not be needed.

  4. Employees and specialists may be assigned to the team as needed. The IIR exam team may also decide to secure the services of outside experts.

  5. Selection of IRS’s team members is made by the IIR exam team executive. IRS Bargaining Unit team members are identified in accordance with the NTEU Letter of Understanding (LOU).

  6. Time should be charged by personnel working an IIR as follows:

    IIR Personnel IIR Time
    LB&I field personnel and subject matter experts Activity code 527, Industry Issue Resolution Program
    LB&I managers Activity code 675, Compliance Outreach
    SB/SE Taxpayer Education & Communication (TEC) employees Strategy 6, OP1-Establish Burden Reduction Program (Project Type 06001)
    SB/SE compliance field employees Activity code 527, Industry Issue Resolution Program
    SE/SE compliance managers Activity code 675, Compliance Outreach
    TE/GE Activity code 527, Industry Issue Resolution Program
    Counsel Guidance project - IIR workload item

  7. The IIR exam team assignment is a collateral duty assignment (not a full-time position) for team members. However, it should be considered priority work. If, as a result of participation in the IIR program, an IRS employee believes that an adjustment in the case inventory or workload may be required, the employee should discuss this issue with their manager. Adjustments in case inventory may be made on a case-by-case basis.

7.40.1.4.2 (03-17-2017)

IIR Exam Team and Industry Orientation

  1. An IIR exam team orientation session will be held to review and start the IIR process. It is recommended that two days be planned for the IIR exam team orientation. Following the IIR exam team orientation, an IIR industry orientation session will be held:

    1. To explain the IIR process,

    2. To explain how outside stakeholders will participate in the process, and

    3. To receive feedback from the industry.

      Note:

      It is recommended that an IRS facilitator be used to conduct both the team and industry orientations.

7.40.1.4.2.1 (03-17-2017)
IIR Exam Team Orientation – Part 1

  1. The first part of the orientation session should include the following IIR procedural topics:

    • IIR process and timeline

    • NTEU LOU, as applicable

    • Roles and responsibilities of IIR exam team members

    • Establishing ground rules for the team

    • IIR Work Plan and administrative tasks

    • Explanation of FACA

7.40.1.4.2.1.1 (03-17-2017)
IIR Process and Target Completion Date

  1. The IIR process, including the different stages, the required tasks, and the timeline, should be discussed at the team orientation.

  2. The IIR target completion date established for the project and the importance of meeting this date should be discussed. It is important for team members to understand the priority nature of their assignment and the reason for the timeline. While the timeline may require adjustments during the IIR process, depending on the complexity of the issue and the availability of resources, the IIR process must be efficient and provide timely service to IRS taxpayers.

7.40.1.4.2.1.2 (03-17-2017)
NTEU LOU

  1. An overview of the provisions of the NTEU LOU should be provided to the bargaining unit team members, who are covered by the LOU, during the team orientation.

7.40.1.4.2.1.3 (03-17-2017)
IIR Work Plan

  1. The IIR Work Plan identifies the:

    • Tasks of the team,

    • Team member(s) responsible for each task, and

    • Timeline associated with each task.

7.40.1.4.2.1.4 (11-01-2004)
IIR Administrative Tasks

  1. Each IIR exam team will need to develop and follow the IIR Work Plan to establish responsibility for the following administrative tasks set forth below.

7.40.1.4.2.1.4.1 (11-01-2004)
IIR Meetings

  1. IIR exam team and industry meetings will be held throughout the IIR process. The team will need to determine responsibilities and processes for conducting meetings, preparing minutes, and distributing the minutes.

    • Conducting Meetings - The team may need to conduct meetings in a variety of formats or at various locations (e.g., via conference calls, video conferences, and on-site meetings). These meetings work best when all parties have access to the agenda and all relevant documents that will be discussed prior to the meeting. Teams may want to have an IRS facilitator initially, or when contentious or complex issues are being discussed.

    • Recording Meetings - Notes of all meetings should be taken, but they do not need to be in-depth. It is suggested that agendas be prepared showing the topics to be covered, the presenter for these topics, and the purpose of discussing the topics. Notes associated with the meetings could then be used to confirm that the topics were covered, capture key points raised, and record planned actions and activities. A meeting recorder should be designated prior to the start of the meeting. Specific taxpayer information should not be included, and personal notes by team members, other than the recorder, should be kept to a minimum. Actions and assignments should be reviewed at the end of the meeting to ensure clarity.

7.40.1.4.2.1.4.2 (03-17-2017)
IIR Project Briefings

  1. Each IIR exam team should determine early in the process when briefings should be held with Chief Counsel, Treasury, Appeals, and respective BOD leadership. Responsibility should be assigned to team members for setting up and conducting these briefings.

7.40.1.4.2.1.4.3 (08-26-2020)
IIR Reports

  1. The IIR exam team is responsible for completing a monthly report and sending it to the responsible IIR analyst and the LB&I IIR coordinator. The form to be used is on the IIR webpage: Industry Issue Resolution Monthly Status Report. The LB&I IIR coordinator will use these reports to prepare a monthly report for ADCCI leadership and other program stakeholders.

7.40.1.4.2.1.4.4 (03-17-2017)
Contracting with Outside Experts

  1. The IIR exam team must determine if outside experts are needed as soon as possible. Requests should be submitted as follows:

    1. Requests for LB&I outside expert funds are submitted by following procedures at IRM 4.46.10, Outside Expert Program.

    2. Requests for SB/SE outside expert funds are submitted through the local estate and gift tax managers.

    3. Requests for TE/GE outside expert funds are submitted through the IIR exam team executive for evaluation on a case-by-case basis.

  2. Upon approval, the assigned team member(s) will work with an LB&I, SB/SE, or TE/GE contracting officer representative to draft a statement of work and to obtain an outside expert.

7.40.1.4.2.1.4.5 (11-01-2004)
Organization and Maintenance of IIR Records

  1. The IIR exam team is required to maintain electronic files which will include the following records:

    • IIR reports (See IRM 7.40.1.4.2.1.4.3)

    • Contact logs, emails, and letters

    • Meeting agendas and minutes

    • Outside expert contracting documents

    • Information requested and received

    • Draft positions

    • IIR recommended guidance package and sign-off

    • Final published guidance, or final administrative guidance

    • Communication documents

  2. At the end of the IIR process, the electronic files will be sent to the issue owner for record retention based on their specific BOD record retention policy.

7.40.1.4.2.1.5 (11-01-2004)
FACA

  1. FACA was enacted to control the growth and standardize the operations of committees and similar groups established to advise executive branch agencies. The establishment of federal advisory committees is subject to ceilings established by General Services Administration (GSA), and FACA requires advisory committees to comply with certain procedural requirements (e.g., filing of a charter with GSA and Congress showing balanced committee membership, and publishing timely notice of meetings in the Federal Register). For more information about FACA, see The Federal Advisory Committee Act website.

  2. It is not intended that federal advisory committees be formed for the IIR process. Therefore, in meeting and interacting with the industry and other interested external stakeholders, IIR exam teams need to be aware of the provisions of FACA and operate in a way as to not trigger FACA requirements.

  3. In meeting with the industry, IIR exam teams may do the following without triggering the procedural requirements of FACA:

    1. Have a single meeting;

    2. Have a meeting for outside groups to voice their concerns, propose solutions; and raise issues that the IRS may need to address;

    3. Have a meeting to provide facts and information to outside groups on a particular IRS policy or initiative;

    4. Have a meeting for the industry to provide information to IRS about industry practices; or

    5. Seek or accept industry comments on a particular IRS policy or initiative.

  4. In meetings and interactions with the industry, IIR exam teams should not do the following, as such actions may trigger the procedural requirements of FACA:

    1. Enter into negotiations with the industry;

    2. Direct outside groups to draft revenue rulings, revenue procedures or other published guidance; or

    3. Direct the membership, agenda, or structure of outside groups.

7.40.1.4.2.2 (11-01-2004)
IIR Orientation - Part 2

  1. The second part of the orientation session will start the resolution process and include the following topics:

    • IIR issue review

    • Industry orientation planning

    • Development of the IIR Issue Work Plan

7.40.1.4.2.2.1 (11-01-2004)
IIR Issue Review

  1. The IIR exam team should review:

    • the outside stakeholder’s submission,

    • information gathered during screening, and

    • any clarifying information the team executive or other members have received.

      Note:

      An open discussion should be held to ensure everyone understands the issue to be resolved.

7.40.1.4.2.2.2 (11-01-2004)
Finalize Plans for the Industry Orientation

  1. The IIR exam team executive will start planning the industry orientation prior to the formal team orientation. The dates and a basic agenda will have already been given to the industry. At the team orientation meeting, the agenda for the industry orientation will be finalized, and each team member will be assigned a role for the industry orientation.

7.40.1.4.2.2.3 (11-01-2004)
Develop IIR Issue Work Plan

  1. The IIR Issue Work Plan is a step-by-step plan for the team to work the issue. The IIR Issue Work Plan should be flexible in nature and will change as the issue is developed. The plan should follow the agreed upon timeline.

7.40.1.4.2.3 (11-01-2004)
IIR Industry Orientation

  1. The industry orientation provides an opportunity for the IIR exam team and industry to build a mutual understanding of each other's interests, objectives, priorities, resources, and time constraints.

  2. The IIR exam team will also begin to identify information and data needs, potential sources, and timeframes for obtaining it. Industry orientation participants include:

    • IIR exam team executive (lead)

    • IIR exam team

    • Industry association or other IIR requester(s)

    • Other interested outside stakeholders

  3. The industry orientation agenda will include:

    • IIR process and timeframes

    • IIR exam team’s role

    • Industry's role in the IIR process and an explanation of FACA provisions

    • Meeting minutes and records of meetings with external participants

    • External issue resolution proposal(s) as outlined in the application submission documents, suggested by other external stakeholders (e.g., taxpayers, industry and representatives), and any differences in the issue that was accepted for the program

    • Presentation by the requester and other stakeholders of the issue, factual situations, explanation of their positions and points of view, and applicable law

    • Fact finding and analysis process

    • Next steps

7.40.1.4.2.3.1 (11-01-2004)
IIR Exam Team's Role

  1. The IIR exam team’s role is to analyze the issue and recommend a resolution of the issue. The Associate Chief Counsel representative on the IIR exam team will serve as the subject matter expert and the primary drafter of proposed published guidance. Published guidance issued under the IIR program is issued and approved in the same manner as other published guidance.

7.40.1.4.2.3.2 (11-01-2004)
Industry's Role and FACA

  1. The industry has the following role in the IIR process:

    • Propose industry issues for the IIR program

    • Identify other industry groups that may be affected or have relevant facts and information relevant to the issue

    • Provide factual information relevant to the issue to the IIR exam team

    • Provide input during analysis of proposed solution

    • Provide information on data to measure the program's success

    • Communicate resolutions to industry taxpayers, clients, etc.

    • Provide feedback for evaluation of IIR program

  2. The team should cover some of the frequently asked questions pertaining to the industry roles and participation in the IIR process during the industry orientation. See Interacting with Outside Stakeholders - FAQs, for the list.

  3. An overview of FACA and its effect on how the team would interact with external stakeholders should be provided to the industry participants.

  4. The team should be aware of and comply with the requirements of IRC 6103, Confidentiality And Disclosure Of Returns And Return Information with respect to any information exchanged with industry participants.

7.40.1.4.2.3.3 (03-17-2017)
Maintaining Meeting Minutes

  1. The IRS will maintain written meeting minutes but not distribute them to industry representatives. Industry participants may take their own notes and will not be required to share their notes with the IRS.

  2. No tape or video recordings of meetings by industry representatives or the IRS will be permitted (Rev. Proc. 2003-1 provides an analogous position reference).

7.40.1.4.2.3.4 (11-01-2004)
Fact Finding and Analysis Process

  1. To enable parties to reach an expeditious conclusion of the fact finding phase of the IIR program, the following should be discussed with the industry at the orientation:

    • Establish an agreed response time for requests for information or documents.

    • Confidential financial or trade secret information submitted to the team should be designated by the requester as not to be released under FOIA per 5 USC 552 (b)(4) exemption at the time of submission. This exemption refers to "trade secrets and commercial or financial information obtained from a person and privileged or confidential." If the information is so designated, the IRS is required to give notice to the requester prior to releasing, 31 CFR 1.6(b) and 31 CFR 1.6(c), and there would then be an opportunity for the requester to administratively or judicially block disclosure, 31 CFR 1.6(d).

    • Discuss possible site visits by the IIR exam team to gather facts on industry operations.

    • Provide feedback on the team's progress and respond to emerging questions or problems about gathering facts (remembering FACA guidelines).

    • Coordinate the review of records and facilities (e.g., travel requirements and scheduling).

    • Share the IIR Work Plan with the industry.

  2. The analysis of the issue will be conducted independently by the IIR exam team. The IIR exam team may discuss its thinking and potential resolutions of the issue in meetings with outside stakeholders, but may not discuss or provide proposed published guidance to outside stakeholders. These meetings with outside stakeholders provide the opportunity to receive outside views and input consistent with the provisions of FACA. However, the team may not enter into negotiations with the industry regarding the resolution of the issue.

7.40.1.4.2.3.5 (11-01-2004)
Next Steps

  1. Conclude the orientation by reviewing process agreements and understandings reached. Identify items to be accomplished before next meeting (including any due dates) and logistical arrangements. Acknowledge the industry’s efforts to support the IIR program.

7.40.1.5 (11-01-2004)

IIR Fact Finding and Analysis

  1. The fact finding and analysis process begins during the IIR exam team and industry orientation sessions and is expected to last between two to four months. This process consists of gathering, verifying and validating relevant facts, and analyzing applicable law while considering the external stakeholders’ facts and positions on the issue. See Lessons Learned from Prior Industry Issue Resolution Teams, for tips in conducting fact finding and analysis.

  2. Fact finding and analysis are separate steps in the process. However, these actions are not completely independent of each other. Some members of the IIR exam team will still be conducting fact finding while others will start preparing legal analysis based on the facts compiled to date. After these steps are completed, the team will be able to recommend a resolution by issuing either published or administrative guidance.

7.40.1.5.1 (03-17-2017)

Fact Finding

  1. The IIR exam team must define the issue to be resolved. Actions to accomplish this may include the following:

    • Review the issue description as accepted and proposed by the requester.

    • Discuss the issue with team members to ensure consensus in understanding the issue.

    • Discuss with outside stakeholders to gain a better understanding of the issue.

    • Explore outside stakeholders' interest in the issue and why the issue is problematic.

    • Identify similar issues in other industries and find out how they are handled.

    • Discuss the issue with other industry and trade associations that may be affected by the issue.

    • Estimate the annual revenue effect of the issue (average tax adjustment times number of taxpayers affected).

  2. The IIR exam team must determine IRS "examination practices" for the issue. Actions to accomplish this may include the following:

    • Determine the magnitude of the issue and how it is being resolved in examinations.

    • Discuss examination practices with team members.

    • Discuss examination practices with industry requesters and other outside participants.

    • Identify and review existing documents which address the issue (e.g., Technical Advice Memorandum, etc.).

    • Review the initial screening information gathered.

    • Review issue management systems.

    • Survey audit teams and other IRS personnel (e.g., Appeals, Counsel) to determine who is currently involved with the issue.

    • Discuss with exam teams or examiners currently working on the issue.

    • Estimate the time and dollars spent on examining the issue.

  3. The IIR exam team must determine industry practices for the issue. Actions to accomplish this may include the following:

    • Study the industry accounting procedures and methods, computer files, commercial framework, tax return preparation methodology, standard industry practices, language, and terminology.

    • Ask industry how they are treating the issue for tax purposes.

    • Ask industry how they are treating the issue for book purposes.

    • Ask industry how and what records are being maintained.

    • Research written sources (e.g., AICPA articles, etc.) and websites for information on industry practices.

    • Research what accounting association (e.g., AICPA, etc.) guidance there is on the issue.

    • Ask industry and examiners if the issue involves a transaction that is being marketed by external parties.

    • Attend presentations regarding industry techniques, problems and economic factors that affect tax considerations.

    • Contact other sources (e.g., university professors, outside experts, etc.) for information regarding industry practices.

    • Meet with other related groups within the industry.

  4. The IIR exam team will develop the facts surrounding the issue. Actions to accomplish this may include the following:

    • Identify types and number of taxpayers affected.

    • Discuss the known facts gathered with team members.

    • Discuss the facts in the submission or industry presentation with industry representatives.

    • Identify method (e.g., request to requester, survey, etc.) for obtaining additional information.

    • Identity and obtain information and internal experts needed to determine facts.

    • Identify and obtain outside expertise, if needed, to validate facts. If it is determined that outside expertise may be needed, see IRM 4.46.10, Outside Experts Program for additional information.

    • Conduct site visits, as needed, to see the issue firsthand.

    • Interview appropriate parties to ensure all facts and activities are identified and validated.

  5. When conducting surveys to gather facts, the following rules must be followed:

    1. Internal - Survey of bargaining unit employees must be sent to NTEU in advance as required by National Agreement Article 8, Section 8A.

    2. External - The Paperwork Reduction Act requires all government agencies to obtain Office of Management and Budget (OMB) approval for activities involving more than nine taxpayers on the same topic. This would not preclude external stakeholders from gathering data from their own members to present during the IIR process.

7.40.1.5.2 (03-17-2017)

Analysis

  1. The IIR exam team will research the tax law and any court decisions pertaining to the issue. Actions to accomplish this may include the following:

    • Review legal analysis provided by the industry.

    • Identify tax law to be reviewed.

    • Research tax law and court cases.

    • Identify any pending litigation(s).

    • Discuss with team members.

    • Discuss with other subject matter experts in LB&I, SB/SE, TE/GE, Chief Counsel, Appeals, and the Department of Justice, as appropriate.

    • Discuss with industry.

  2. The IIR exam team will determine the status of pending legislation affecting the issue. Actions to accomplish this may include the following:

    • Discuss with team members and industry.

    • Ask team members and industry to keep each other informed of any legislation updates.

    • Ask the Associate Chief Counsel representative on the team to follow up internally on any pending legislation.

    • Review the Congress.gov website periodically to determine if there is any legislative activity.

  3. The IIR exam team will review change in accounting methods law and procedures. Actions to accomplish this may include the following:

    • Reviewing any related prior IIR guidance on change in accounting methods.

    • Reviewing Change in Accounting Method (CAM) administrative guidance (e.g., current revenue procedures for Voluntary Method Changes, Automatic Method Changes, Involuntary Method Changes).

    • Discussing with CAM subject matter expert(s).

    • Discussing with team members and industry.

7.40.1.6 (03-30-2026)

IIR Exam Teams Reaching Agreement on Resolution

  1. All team members should participate in the recommendation of guidance to resolve the issue. In general, a meeting should take place with all members present. If possible, a facilitator should also be present to assist in resolving disagreements among team members. The goal is to obtain IIR exam team consensus on the recommended resolution. However, if a consensus cannot be reached, all minority positions should be discussed in the briefing paper.

7.40.1.6.1 (03-17-2017)

IIR Published Guidance

  1. IIR exam team resolution analysis should start with deciding on whether a revenue procedure or other form of published guidance is the appropriate vehicle for communicating the guidance. The team should also decide if supplemental internal guidance is warranted.

  2. Next, the team should discuss and agree on the recommended technical position and guidance needed. The team discussion and recommendations should address the following:

    1. Whether the proposed guidance affects other taxpayers, IRS BODs, or other government agencies. If so, what coordination and actions will be necessary, or whether the scope should be narrowed?

    2. Whether the proposed guidance affects other guidance. If so, will the published guidance need to be revised or revoked? Will internal guidance need to be revised?

    3. Whether a safe harbor provision is warranted, feasible, and likely to be adopted by industry?

    4. Whether guidance will be retroactive or prospective. If prospective, whether audit protection should be given?

    5. If applicable, how should a CAM provision be handled?

  3. Prior to drafting published legal guidance, a briefing should be conducted (either individually or as a team) with Chief Counsel, Treasury, LB&I, SB/SE, or TE/GE leadership on the technical position or safe harbor being recommended.

  4. If no major concerns are raised, the IIR exam team will prepare the guidance package consisting of a briefing paper, proposed published guidance, and any proposed administrative guidance. The Associate Chief Counsel subject matter expert is the primary drafter of the proposed published guidance with assistance from the IIR exam team. Drafts disseminated in hard copy or by email to any IRS employee either outside or within the IIR exam team should be marked "Draft" and contain the following language: "This document includes statements subject to privilege. This document should not be disclosed to anyone. You are hereby notified that any disclosure, copying, distribution, or the taking of any action in reliance on the contents of this information, is strictly prohibited. The positions set forth in this document should not be interpreted as an official position of the IRS."

  5. The contents of the "Briefing Paper" should include the following:

    • Background information on the IIR Issue, the IIR process, and industry practice

    • Industry impact

    • General discussion on the legal analysis

    • Team’s recommendation and deliberation

    • Any alternative or minority positions

    • Industry recommendation

    • Comparison of the IIR exam team’s and Industry's suggested resolution

    • How the issue is treated for book and tax purposes

    • Compliance considerations and record keeping requirements

    • Effect on other taxpayers, IRS BODs, or other government agencies

    • Effect on other guidance

    • Assessment of the industry’s adoption of any safe harbor provision(s)

  6. The proposed published guidance must be prepared in accordance with all procedural requirements and submitted for review and clearance through the Associate Chief Counsel with primary subject matter jurisdiction. The guidance should be ready to go forward for formal clearance when completed and reviewed by the team. Drafts may be shared freely among team members. Drafts do not constitute Chief Counsel Advice for the purposes of IRC 6110(i).

  7. Drafts of the published guidance can be shared with other IRS personnel, with team executive approval, if their input is helpful in the development of the guidance product, and providing a copy of the draft is the most effective manner of obtaining that input. The IIR exam team should ensure that the copies of draft documents shared for this purpose are returned to the team or destroyed by the recipients.

  8. If the team decides that administrative guidance is needed, the guidance should be drafted and released at the same time or shortly after the published guidance is issued. Internal guidance may include:

    • Compliance strategy or position for dealing with taxpayers who may not follow the IIR.

    • Examination techniques or audit steps to use for future audits.

7.40.1.6.2 (03-17-2017)

IIR Administrative Guidance

  1. The team should review the proposed administrative guidance and its impact to determine:

    • What coordination or clearance will be necessary with other affected IRS BODs, or offices.

    • What other internal guidance will need to be revised and assign responsibility for it.

    • Whether the administrative guidance resolves the issue or whether a published guidance project should be proposed.

  2. A briefing should be conducted (either individually or as a team) with the BOD issue owner on the proposed guidance and other recommendations. If no concerns are raised, the IIR exam team will draft the guidance package consisting of a briefing paper and the proposed administrative guidance. The briefing paper will include recommendations as to whether additional published guidance will be necessary.

7.40.1.7 (03-17-2017)

IIR Approval, Communications, and Evaluation

  1. This is the final stage in the IIR process. At this point, approval and communication activities should be occurring simultaneously. Guidance packages will be placed in formal clearance, briefings will occur, and communication strategies will be developed.

7.40.1.7.1 (03-17-2017)

Approval of IIR Exam Team Recommendations

  1. Once the IIR exam team's guidance package has been prepared, each team member will review and indicate approval. The guidance package should include a cover sheet, briefing paper, and proposed guidance. A copy of the guidance package is placed in the team binder. The approval process will start with the IIR issue owner. At any point in the approval process, the draft document may be returned to the team for additional work.

7.40.1.7.1.1 (03-17-2017)
Issue Owner Approval

  1. The IIR exam team executive will present the guidance package to the BOD Commissioner for approval. The presentation will include a briefing by the IIR exam team on the team's findings and recommendation. Joint or separate briefings will be held if requested for other IRS executives (i.e., L&A Division Counsel, TE/GE Division Counsel, or Appeals) affected. The functional team member will coordinate their attendance and briefing. The date of the submission and approval of the BOD Commissioner will be noted on the sign-off sheet and should be retained.

7.40.1.7.1.2 (03-17-2017)
Briefing Outside Stakeholders

  1. Once the BOD Commissioner has approved the IIR exam team's guidance recommendation, the IIR exam team may meet with the outside stakeholders who participated in the process. No documents will be shared with the outside stakeholders at the meeting, but the IIR exam team should outline the proposed recommended resolution, explaining the rationale for the proposed recommended resolution. The IIR exam team must clearly state that the proposed recommended resolution is not an IRS position, and that, if the proposed recommended resolution leads to published guidance, the published guidance will be prepared and approved (and is subject to change) in the same manner as other published guidance.

7.40.1.7.1.3 (03-17-2017)
Published Guidance Clearance

  1. The Associate Chief Counsel team member, upon notification of the BOD’s approval, will begin the formal clearance process for the guidance. Normal clearance procedures for published guidance will be followed during the review by Chief Counsel, the affected BOD Commissioner, and Treasury.

  2. The IIR exam team executive may follow up with Counsel and Treasury to find out what stage of clearance the proposed guidance is in. If problems or questions arise, the IIR exam team should participate in any necessary briefings (either in-person or by conference call) to resolve the issue.

  3. Upon receiving Treasury approval, the Associate Chief Counsel attorney will coordinate the release of the guidance with the IIR exam team manager and the appropriate BOD Division Counsel.

7.40.1.7.1.4 (03-30-2026)
Administrative Guidance Clearance

  1. A team member(s) should be assigned responsibility for clearing administrative guidance (i.e., audit guidelines, directives, interim guidance memoranda). Normal clearance procedures should be followed based on the type of guidance being issued. If issued on an interim guidance basis via memorandum, the issue owner is responsible for ensuring that the guidance is later incorporated into the IRM or another published document.

7.40.1.7.2 (11-01-2004)

Communication of IIR Guidance

  1. Once the guidance package has been prepared, the IIR exam team should begin developing communication strategies to ensure that all external participants are timely informed and internal and external outreach plans are developed to communicate the guidance to those affected.

7.40.1.7.2.1 (03-17-2017)
Notification of Issue Requesters and Other External Participants

  1. Published Guidance - IIR participants are notified of the publication of guidance at the same time the guidance is released to the press. The Associate Chief Counsel representative will coordinate the timing of this event with the appropriate BOD Division Counsel and the IIR exam team.

  2. Administrative Guidance – IIR exam team will notify the IIR participants when the administrative guidance has been posted to IRS.gov.

  3. After the guidance has been released, the IIR exam team should meet with the issue requester and other affected parties to brief them on the contents of the guidance and gather feedback on the IIR process. This could be done in person or through conference calls.

7.40.1.7.2.2 (03-17-2017)
Communications Plan

  1. Each IIR exam team executive is responsible for the development of a communications plan to announce the IIR resolution guidance. The IIR exam team will draft the communications products with the assistance of the respective BOD communication specialist. Communications product drafting should start no later than when the proposed guidance has been submitted for clearance.

  2. The IIR exam team should keep the functional communication specialists abreast of the development of the proposed resolution to ensure timely communication planning, product development, and coordination of communication activity for their respective internal and external audiences. The functional communications specialists will coordinate the clearance of the communications documents with the respective BOD IIR coordinator.

  3. The announcement of administrative guidance should be coordinated with the release of the associated published guidance.

7.40.1.7.3 (11-01-2004)

Questions from Internal and External Stakeholders

  1. Internal and external stakeholders with questions concerning IIR published guidance should direct their questions to the Associate Chief Counsel office responsible for the subject matter addressed in the published guidance. A BOD contact should be assigned to answer questions on IIR administrative guidance issued (e.g., audit guidelines).