or any other governmental agency, detailing the disposition of any such previous request, or has filed an application for an execption or an exemption. Where the request pertains to only one step of a larger integrated transaction, the facts, circumstances, etc., must be submitted with respect to the entire transaction. As documents and exhibits become a part of the file and cannot be returned, the original documents should not be submitted.

(b) If the applicant is contending for a particular determination, he must furnish an explanation of the grounds for his contentions, together with a statement of relevant authorities in support of his views. Even though the applicant is urging no particular determination with regard to an act or transaction, he must state his views as to the effect of economic stabilization regulations and guidelines upon the action and furnish a statement of relevant authorities to support such views.

(c) A request by or for an applicant must be signed by the applicant or his authorized representative. If the request is signed by a representative of the applicant, or if the representative is to appear before the Council or IRS in connection with the request he must be a person who complies with the appearance requirements of this part. Such representative must not be under disbarment or suspension to practice before the Internal Revenue Service or the Cost of Living Council. Form S-68, Power of Attorney, must be used with regard to determinations requested pursuant to this section.

(d) Any request for a determination which does not comply with all the provisions of this section will be acknowledged and the requirements which have not been met will be pointed out.

(e) An applicant or his representative who desires an oral discussion of the issue or issues involved should indicate such desire in writing when filing the request or soon thereafter in order that a conference or hearing, if granted, may be arranged at that stage of consideration when it will be most helpful.

(f) It is the practice of the IRS to process requests for determinations in regular order and as expeditiously as possible. Compliance with a request for consideration of a particular matter ahead of its regular order, or by a specified time, tends to delay the disposition of other matters. Requests for processing ahead of the regular order, made in writing in a separate letter submitted with

the request or subsequent thereto and showing clear need for such treatment will be given consideration as the particular circumstances warrant. However, no assurance can be given that any request for determination will be processed by the time requested. For example, the scheduling of a closing date for transaction or a meeting of the board of directors or shareholders of a corporation without due regard to the time it may take to obtain such a determination will not be deemed sufficient reason for handling a request ahead of its regular order. Neither will the possible effect of fluctuation in the market price of goods or commodities on a transaction be deemed sufficient reason for handling a request out of order. Requests by telegram will be treated in the same manner as requests by letter. Determinations ordinarily will not be issued by telegram.

(g) A request for an interpretation which includes, or could be construed to include, an application for an exception or exemption will nonetheless be treated solely as a request for an interpretation, as appropriate, and processed as such.

(a) This subpart establishes the procedures of the Council governing initial actions with respect to all filings required or permitted under the provisions of Part 150 of this chapter except for requests for exceptions which are governed by subpart C of this part and requests for exemption or reclassification which are governed by subpart D of this part. All papers filed must conform to the requirements set forth in part 150 and any filing instructions which accompany the prescribed forms.

(b) Except as provided in paragraphs (c) and (d), all firms making initial filings with respect to the following matters shall file their papers with the key IRS District Office which serves the district in which their corporate headquarters are domiciled:

(1) Prenotifications and reports filed pursuant to subparts H, K, L, N, or P of part 150;

(2) Applications for modification of prenotification requirements pursuant to § 150.151 (b) (2) (iv);

(3) Applications for volatile pricing authorizations pursuant to § 150.156;

(4) Reports supporting loss or low profit firm pricing pursuant to § 150.201.

(5) Reports supporting minimum profit margin treatment pursuant to § 150.202;

(6) Merchandise pricing plans pursuant to § 150.306; and

(7) Requests for interpretation

(c) Insurers subject to subpart M of part 150 of this chapter shall make all filings pursuant to that subpart and shall file requests for interpretation with the Internal Revenue Service, Insurance Group (Stabilization), P.O. Box 995, Washington, D.C. 20044.

(d) Institutional and noninstitutional providers of health services subject to subpart O of Part 150 of this chapter shall make all filings pursuant to that subpart and shall file requests for interpretation with the Cost of Living Council, 2000 M Street, N.W., Washington, D.C. 20508.

(e) Initial actions on filings made pursuant to this subpart may be made by the Council or IRS, as appropriate, in accordance with Cost of Living Council Order No. 37, 38 F.R.

1973).

(August

§ 155.22 Initial actions by the Council.

(a) In those cases in which a document is filed with the Council and the applicable provision of part 150 provides that a proposed action may be taken unless the Council takes affirmative action to suspend, modify, defer, or disapprove the proposed action, the Council may make a decision and issue an order together with a statement of the grounds there for to suspend, modify, defer, or disapprove the proposed action pursuant to the applicable provision of part 150.

(b) In those cases in which a document is filed with the Council and the applicable provision of part 150 provides that a proposed action may not be taken unless the Council approves, the Council will make a decision and issue an order together with a statement of the grounds therefor.

(c) Within 60 days after it receives a firm's merchandise pricing plan pursuant to § 150.306, the Council will review the plan and (1) approve it or (2) take the action provided for in § 150.308.

(d) The Council will issue interpretations in response to requests for interpretation filed pursuant to § 155.21 of this subpart.

(e) The Council will advise the recipient of an order or interpretation issued under this section which is adverse to the recipient that he may seek reconsideration under subpart F.

§ 155.23 Requests for Reconsideration.

Any person aggrieved by an initial action of the Council under this subpart may request reconsideration pursuant to subpart F. The Council will not consider that a person appearing before the Council has exhausted his administrative remedies until he has filed a request for reconsideration under subpart F and final action has been taken by the Council under §§ 155.106 through 155.108.

SUBPART C-EXCEPTIONS

§ 155.41 Purpose and scope.

Exceptions from the provisions of Part 150 of this title may be granted for the purpose of preventing or correcting a serious hardship or gross inequity.

(a) All persons requesting exceptions shall file their applications with the key IRS District Office which serves the district in which their corporate headquarters are domiciled, except that persons who are: (1) Insurers subject to subpart M of part 150 of this chapter, shall file with the Internal Revenue Service, Insurance Group (Stabilization), P.O. Box 995, Washington, D.C. 20044 and (2) Institutional and noninstitutional providers of health services subject to subpart O of Part 150 of this chapter, shall file with the Cost of Living Council, 2000 "M" Street, N.W., Washington, D.C. 20508. All requests for exception, wherever filed, must conform to the requirements set out in § 155.11 of this part.

(b) Initial actions on requests for exception may be made by the Council or IRS, as appropriate, in accordance with Cost of Living Council No. 37, 38 F.R. (August, 1973).

(c) This subpart establishes the rules of the Council governing the disposition of requests for exceptions.

§ 155.42 Initial action on request for exception.

After considering the record, the Council will make a decision and issue an appropriate order:

(a) When the Council grants an exception it will serve upon the applicant a copy of its order.

(b) When the Council denies an exception in whole or in part, it will serve upon the appellant a copy of its order, which will contain a statement of the grounds for denial, and advise the applicant that he may request reconsideration pursuant to subpart F of this part.

§ 155.43 Requests for reconsideration.

Any person aggrieved by an initial action of the Council under this subpart may request reconsideration pursuant to subpart F of this part. The Council will not consider that a person appearing before the Council has exhausted his administrative remedies until he has filed a request for reconsideration under subpart F and final action has been taken by the Council under §§ 155.106 through 155.108.

SUBPART D-EXEMPTIONS AND

RECLASSIFICATIONS

$155.61 Purpose and scope.

(a) All requests for exemption, or reclassification with respect to prenotification or reporting requirements must be filed with the Cost of Living Council, 2000 M Street, N.W., Washington, D.C. 20508.

(b) This subpart establishes the rules of practice of the Council governing initial action on requests for exemption or reclassification.

§ 155.62 Initial action by Council.

After considering the record, the Council will make a decision and issue an order:

(a) When the Council grants an exemption or reclassification, it will serve upon the appellant a copy of its order.

(b) When the Council denies an exemption or reclassification, in whole or in part, it will serve upon the appellant a copy of its order, which will contain a statement of the grounds for denial, and advise the applicant that he may request reconsideration pursuant to Subpart F of this part.

§ 155.63 Requests for reconsideration.

Any person aggrieved by an initial action of the Council under this subpart may request reconsideration pursuant to subpart F of this part. The Council will not consider that a person appearing before the Council has exhausted his administrative remedies until he has filed a request for re

consideration under subpart F and final action has been taken by the Council under §§ 155.106 through 155.108.

SUBPART E-NOTICES OF PROBABLE VIOLATION; REMEDIAL ORDERS

§ 155.81 Purpose and scope.

(a) This subpart establishes the procedures for determining the nature and extent of violations and the procedures for the issuance of remedial orders.

(b) A "remedial order" is an order requiring a person to cease a violation or to take action to eliminate or to compensate for the effects of a violation, or both, or which imposes other sanctions. § 155.82 General.

When any report required by the Council or any audit or investigation discloses, or the Council otherwise discovers, that a person appears to be in violation of the Act or any regulation in this title, the Council may conduct proceedings to determine the nature and extent of the violations and issue remedial orders. The Council may commence proceedings by serving a notice of probable violation or by issuing a remedial order.

§ 155.83 Issuance of notice of probable violation to begin proceedings.

The Council may begin proceedings under this subpart by issuing a notice of probable violation if the Council has reason to believe that a violation has occurred or is about to occur.

§ 155.84 Issuance of remedial orders to begin proceedings in unusual circumstances. Remedial orders may be issued to begin proceedings under this subpart if the Council finds on preliminary examination that the violations are patent or repetitive, that their immediate cessation is required to avoid irreparable injury to others or unjust enrichment to the person to whom the order is issued, or for any other unusual circumstance the Council deems sufficient.

§ 155.85 Reply.

(a) Within 10 days of receipt of a notice of probable violation issued under § 155.83 or a remedial order issued under § 155.84, the person to

whom the notice or order is issued may file a reply. The reply must be in writing. He may also request an appointment for a personal appearance, which must be held within the 10-day period provided for reply. He may be represented or accompanied by counsel at the personal appearance. The Council will extend the 10-day reply period for good cause shown.

(b) If a person does not reply within the time allowed by a notice of probable violation, the violation will be considered admitted as alleged and the Council may issue whatever remedial order would be appropriate.

(c) If a person has not replied to the Council within the 10-day period provided and a remedial order issued to begin proceedings, the order will go into effect or remain in effect, in accordance with its terms as the case may be.

(d) An order which goes into effect or is permitted to remain in effect under paragraph (c) of this section or an order issued under paragraph (b) of this section is not subject to judicial or any other review with respect to any finding of fact or conclusion of law which could have been raised in the proceedings before the Council by the filing of a reply.

§ 155.86 Order.

(a) If the Council finds, after the person has filed a reply under § 155.85, that no violation has occurred or is about to occur or that for any other reason the issuance of a remedial order would not be appropriate, it will issue an order so stating and, if necessary, revoke or modify any remedial order which already may be outstanding.

(b) If the Council finds that a violation has occurred or is about to occur and that a remedial order is appropriate, it will issue an order so stating and, if necessary, direct remedial action, vacate the suspension of any outstanding remedial order, or modify as appropriate, any outstanding remedial order. The order will state the grounds upon which it is based.

(c) Remedial orders issued hereunder may include any of the provisions stated in § 150.163 of this chapter or subpart J of this part for the kind of violation concerned or any other requirement which is reasonable and appropriate.

§ 155.87 Requests for reconsideration.

Any person aggrieved by an initial action of the Council under this subpart may request reconsid

eration pursuant to subpart F of this part. Requests for reconsideration of an order under this subpart will be accorded expedited treatment by the Council. The Council will not consider that a person appearing before the Council has exhausted his administrative remedies until he has filed a request for reconsideration under subpart F and final action has been taken by the Council under §§ 155.106 though 155.108.

SUBPART F-REQUESTS FOR RECONSIDERATION

§ 155.101 Purpose and scope.

(a) This subpart establishes the procedures governing reconsideration of initial actions taken under subparts B, C, D, or E of this part.

(b) The Council will not consider that a person who has appeared before the Council in connection with a matter arising under subparts B, C, D, or E has exhausted his administrative remedies until he has filed a request for reconsideration under this subpart and final action thereon has been taken by the Council under §§ 155.106 through 155.108.

§ 155.102 Who may request reconsideration. Any person aggrieved by an initial action of the Council under subparts B, C, D, or E of this part may request reconsideration.

§ 155.103 Where to file.

A request for reconsideration shall be filed with the IRS or Council official who issued the initial action or decision from which reconsideration is sought.

§ 155.104 When to file.

A request for reconsideration must be filed within 30 days of service of the initial action or decision from which reconsideration is sought.

§ 155.105 Contents of request.

(a) A request for reconsideration shall(1) Be in writing and signed by the appellant; (2) Be designated clearly as a request for reconsideration;

(3) Contain a concise statement of the grounds for reconsideration and the requested relief; (4) Be accompanied by briefs, if any; and

(5) Be marked on the outside of the envelope"Reconsideration."

(b) If the request for reconsideration is from an order issued under § 155.86 and involves an outstanding remedial order, the envelope should be marked "Reconsideration-Outstanding Remedial Order."

$155.106 Reconsideration.

(a) The Council will reconsider its initial action taken under subparts B, C, D or E of this part if a request for reconsideration:

(1) Is made by a person aggrieved by the initial action;

(2) Is timely; and

(3) Makes a prima facie showing that the Council's initial action was erroneous in fact or in law. (b) The Council may summarily reject a request for reconsideration which is not timely or which was filed by a person other than the one against whom the initial action was taken.

(c) The Council may summarily reject a request for reconsideration which fails to make a prima facie showing that the Council's initial action was erroneous in fact or in law, in which case it will notify the applicant of its action. Such appellant may seek judicial review under the Act.

(d) When a request for reconsideration meets the requirements set forth in paragraph (a) of this section, the Council will proceed in accordance with § 155.107 through § 155.108.

(e) The Council on its own motion may consider any additional evidence that it deems relevant and which in its opinion the party did not have a reasonable opportunity to present previously.

$155.107 Hearing.

(a) If the Council in its discretion deems that a hearing or conference is advisable, it will, as expeditiously as possible after receiving the request for reconsideration, direct that a hearing or conference be held before a Hearing Officer or District conferee.

(b) When a hearing or conference has been directed in accordance with paragraph (a) of this section, it will be conducted promptly after written notice has been served on the appellant, at such time and place as the Council may direct. (c) When a hearing is conducted in accordance with this section, the appellant may present oral argument and submit such additional documentary evidence as the Hearing Officer or District conferee allows.

(d) When administratively feasible, within 30 days after the close of the hearing, the Hearing Officer or District conferee will submit to the Council a report and any recommendation he deems appropriate with respect to the appellant's request for reconsideration.

§ 155.108 Decision by Council.

(a) When administratively feasible, within 10 days of receipt of a request for reconsideration, or within 30 days of a Hearing Officer's or District conferee's report, when a hearing or conference has been held, the Council will make a decision and issue an order. However, if a remedial order is outstanding and reconsideration is sought from an order under § 155.86, the Council will make every effort to expedite the issuance of an order under this section. It is expected that such orders will ordinarily issue within 10 days of receipt of the request for reconsideration.

(b) When an order grants the requested relief, a copy of the order will be served upon the party to the proceedings.

(c) When the order denies the requested relief in whole or in part, the Council will set forth the grounds therefor, and advise appellant that he has exhausted his administrative remedies.

§ 155.109 Stays pending reconsideration.

As part of a request for reconsideration, any person may request a stay of the initial action for which reconsideration is sought pending final disposition of the request for reconsideration. The Council may grant a request for stay for good cause shown.

SUBPART G-COMPROMISE OF CIVIL PENALTIES

§ 155.121 Purpose and scope.

(a) Under section 208 (b) of the Economic Stabilization Act of 1970, as amended, whoever violates an order or regulation issued by the Council (or an order or regulation by the Price Commission during the time that such order or regulation was or is in effect) under that Act is subject to a civil penalty of not more than $2,500 for each violation. This subpart prescribes procedures governing the compromise and collection of those civil penalties which the Council considers appropriate or advisable to settle through compromise.