401.1013

Appearance of the person subpenaed.

401.1014 Enforcement of subpena. 401.1015 Authority to administer oaths.

AUTHORITY: The provisions of this Part 401 issued pursuant to Economic Stabilization Act of 1970, as amended, Public Law 91-379, 84 Stat. 799; Public Law 91-558, 84 Stat. 1468; Public Law 92-8, 85 Stat. 13; Public Law 9215, 85 Stat. 38; Public Law 92-210, 85 Stat. 744, Executive Order No. 11627, as amended; Cost of Living Council Order No. 5, 36 F.R. 21798; Pay Board Order No. 1, 36 F.R. 21798; Price Commission Order No. 1, 36 F.R. 21798.

Sections 401.606 to 401.611 also issued under Executive Order No. 11640, 37 F.R. 1213; Cost of Living Council Order No. 8, 37 F.R. 2727; Pay Board Order No. 4, 37 F.R. 3792; Price Commission Order No. 2, 37 F.R. 3212.

SOURCE: The provisions of this Part 401 appear at 37 F.R. 1010, Jan. 21, 1972, unless otherwise noted.

(a) It is the purpose of this part to prescribe and explain the procedures used by the Internal Revenue Service, including the Office of the Chief Counsel, in administering the President's Economic Stabilization Program, with respect to acts and transactions occurring after November 13, 1971.

(b) These regulations shall be construed to effectuate the purpose of the Act and the economic stabilization regulations and guidelines and to provide for the just and prompt disposition of all proceedings.

§ 401.2 Definitions and terms.

As used in this part, except where the context indicates otherwise, the term:

"Act" means the Economic Stabilization Act of 1970 (Public Law 91-379, 84 Stat. 799), as amended.

Counsel, which declares an administ tive determination contrary to the pc tion asserted by the applicant.

"Complaint" means an allegation o violation of the President's Econon Stabilization Program.

"Cost of Living Council" means t body established pursuant to the pro sions of Executive Order 11627 (3 CF 1971 Comp., p. 218), as amended.

"Cost of Living Council Ruling" mea an official determination by the Office the Chief Counsel for the Internal Re enue Service, with the advice and com currence of the General Counsel of t Cost of Living Council and the Gener Counsel of the Treasury Departmer which has been promulgated in the nan of the Cost of Living Council and pul lished in the FEDERAL REGISTER. Cost C Living Council Rulings are issued onl by the Office of the Chief Counsel an are published for the information an guidance of citizens, Internal Revenu Service officials, and others concerned.

"District conferee" means a perso designated by Internal Revenue Servic to process and decide any appeal referre to in 401.601.

"District director" means a distric director of the Internal Revenue Service or his delegate.

"District office" means a district did rector's office and such local offices within his district as a director may designate

"Economic stabilization regulations and guidelines" means the regulations and guidelines promulgated by the Cost of Living Council, Pay Board, and Price Commission in this title.

"Exception" means a waiver in a particular case of the requirements of any rule, regulation, or order, issued pursuant to the Act.

"Exemption" means a general waiver from the President's Economic Stabilization Program granted by the Cost of Living Council with respect to a class of property, services, or economic transactions.

"Information letter" means a statement issued by a district director which calls attention to a well-established interpretation or principle of the regulations or guidelines of the Cost of Living Council, Pay Board, or Price Commission, without applying it to a specific set of facts. An information letter may be issued when the nature of the request from the individual or the organization suggests that it is seeking general information or where the request does not meet

"Act or transaction" shall include a series or combination of such acts or transactions.

"Adverse action” means an interpretation or ruling, issued by the Internal Revenue Service or the Office of the Chief

Bo

all the requirements of § 401.101, and it is believed that such general information will assist the individual or organization. "Interpretation" means a written statesment issued by a district director in response to an inquiry by an individual or an organization, which applies to the particular facts involved the principles and precedents previously announced by the Office of the Chief Counsel and the Cost of Living Council, Pay Board, or Price Commission, as appropriate. Interpretations are issued only where a determination can be made on the basis of established rules as set forth in the regulations and guidelines of the Cost of Living Council, Pay Board, and Price Commission, or by rulings or court decisions. "National Office" means the Office of the Assistant Commissioner of Internal Revenue (Stabilization).

"Notice of violation" means a written statement issued to a person by the Internal Revenue Service setting forth one or more charges of alleged violation of the President's Economic Stabilization Program.

"Office of the Chief Counsel" means the Office of the Chief Counsel for the Internal Revenue Service located in Washington, D.C.

"Pay adjustment" means a change in wages and salaries.

"Pay Board" means the body estabdelished pursuant to Executive Order 11627, 36 F.R. 20139 (1971), as amended.

"Pay Board Ruling" means an official interpretation by the Office of the Chief Counsel for the Internal Revenue Service, with the advice and concurrence of the General Counsel of the Pay Board and the General Counsel of the Treasury Department, which has been promulgated in the name of the Pay Board and published in the FEDERAL REGISTER. Pay Board Rulings are issued only by the Office of the Chief Counsel and are published for the information and guidance of citizens, Internal Revenue Service officials, and others concerned.

"Pay Challenge" means an objection to a pay adjustment as defined in § 201.14 of this title, filed by

(1) A party at interest as defined in § 201.3 of this title; or,

(2) Five or more members of the Pay Board.

"Person" means any individual, estate, trust, sole proprietorship, partnership, association, company, joint-venture, corporation, bargaining representative, governmental unit or instrumentality

84-025 0-72 -27

thereof, or a charitable, educational or other such institution; however, the term does not include a foreign government or instrumentality thereof or international organizations established by treaty or by agreement among participating governments.

"Person aggrieved" means:

(1) A person with a substantial pecuniary interest which is adversely affected by a determination,

(2) A bargaining representative of the employees whose wages or salaries are subject to a pay adjustment, or in the absence of such bargaining representative, an employee whose wage or salary is subject to a pay adjustment,

(3) A person whose request for an exception or for an exemption has been denied by a district director, or

(4) Where no violation is found, the tenant who filed a written complaint with respect to a rent increase.

"Person with a substantial pecuniary interest" means a person who increased or seeks to increase a price or rent, a person who is required to pay an increase in rent, wages, or salaries, or a person who put into effect or proposed a pay adjustment.

"Practice before the Internal Revenue Service" comprehends all matters connected with presentation to the Internal Revenue Service or any of its officers or employees relating to a client's rights, privileges, or liabilities under laws or regulations administered by the Internal Revenue Service relating to economic stabilization matters. Such presentations include the preparation and filing of necessary documents, correspondence with and communications to the Internal Revenue Service, and the representation of a client at conferences, hearings, and meetings. Neither the appearance of an individual as a witness, nor the furnishing of information at the request of the Internal Revenue Service or any of its officers or employees is considered practice before the Revenue Service.

"President's Economic Stabilization Program" means the program established and constituted pursuant to Executive Order 11627, 36 F.R. 20139 (1971), and the regulations and guidelines promulgated in this title, to effectuate the purposes of the Act.

"Price adjustment" means a change in the unit price or a decrease in the quality without a change in the unit price of substantially the same property or services.

"Price Commission" means the body established pursuant to Executive Order 11627, 36 F.R. 20139 (1971), as amended.

"Price Commission Ruling" means an official interpretation by the Office of the Chief Counsel for the Internal Revenue Service, with the advice and concurrence of the General Counsel of the Price Commission and the General Counsel of the Treasury Department, which has been promulgated in the name of the Price Commission and published in the FEDERAL REGISTER. Price Commission Rulings are issued only by the Office of the Chief Counsel and are published for the information and guidance of citizens, Internal Revenue Service officials, and others concerned.

"Request for a determination" means a written inquiry by a person as to the application to him of the regulations and guidelines promulgated by the Cost of Living Council, Pay Board, and Price Commission in respect of a completed or proposed act or transaction. Thus, such a request may be a request for an interpretation or ruling, an application for an exception or exemption, or a pay challenge.

"Ruling" means a written statement issued to a person or his authorized representative by the Office of the Chief Counsel for the Internal Revenue Service which interprets and applies the regulations and guidelines of the Cost of Living Council, Pay Board, or Price Commission, as appropriate, to a specific set of facts. Rulings are issued only by the Office of the Chief Counsel for the Internal Revenue Service. The issuance of rulings is under the general supervision of the Chief Counsel and has been largely redelegated to the Stabilization Division.

[37 F.R. 1010, Jan. 21, 1972; 37 F.R. 1453, Jan. 29, 1971, as amended at 37 F.R. 6653, Apr. 1, 1972; 37 F.R. 11669, June 10, 1972; 37 F.R. 17375, Aug. 26, 1972]

scribed or allowed by this part for the performance of any act, the day of the act, event, or default on which the desig nated period of time begins to run sha not be counted. Additionally, if the perio prescribed or allowed is 7 days or less, að intervening Saturday, Sunday, or Fed eral legal holiday shall not be counted [37 F.R. 6654, Apr. 1, 1972]

§ 401.5 Service.

(a) All documents required to b served under this part shall be serve personally or by registered or certified mail.

(b) Wherever a person is represented by a duly authorized representative service on the representative shall constitute service on the person.

(c) A certificate of service shall be filed for each document served.

(d) Service by mail is complete upon mailing.

§ 401.6 Timely mailing treated as timely filing.

(a) General rule-(1) Date of delivery. If any appeal, statement or other document required to be filed within a prescribed period or on or before a prescribed date under authority of any provision of this part is, after such period or such date, delivered by U.S. mail to the officer or office with which such appeal, statement or other document is required to be filed, the date of the U.S. postmark stamped on the cover in which such appeal, statement or other document is mailed shall be deemed to be the date of delivery.

(2) Mailing requirements. This paragraph shall apply only if:

(i) The postmark date falls within the prescribed period or on or before the prescribed date for the filing (including any extension granted for such filing) of the appeal, statement or other document, and

(ii) The appeal, statement or other document was within the time prescribed in subdivision (i) of this subparagraph deposited in the mail in the United States in an envelope or other appropriate wrapper, postage prepaid, properly addressed to the officer or office with which the appeal, statement or other document is required to be filed.

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(i) Such registration shall be prima facie evidence that the appeal, statement, or other document was delivered to the officer or office to which addressed, and,

(ii) The date of registration shall be deemed the postmark date.

(2) Certified mail. For purposes of this section, if any such appeal, statement, or other document is sent by U.S. certified mail and the sender's receipt is postmarked by the postal employee to whom such document is presented:

(i) Such sender's receipt shall be prima facie evidence that the appeal, statement, or other document was delivered to the officer or office thereon indicated, and

(ii) The date of such postmark shall be deemed the postmark date.

§ 401.7 Time for performance of acts where last day falls on Saturday, Sunday, or legal holiday.

When the last day prescribed under this part for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday, or a legal holiday. For purposes of this section, the last day for the performance of any act shall be determined by including any authorized extension of time; the term "legal noliday" means a legal holiday in the District of Columbia; and in the case of any appeal, statement, or other document required to be filed, or any other act required under authority of this part to be performed at any office of the Internal Revenue Service, located outside the District of Columbia but within an internal revenue district, the term "legal holiday" also means a Statewide legal holiday in the State where such office is located.

accorded expeditious handling by the Internal Revenue Service.

[37 F.R. 17375, Aug. 26, 1972] Subpart B-Instructions to Applicants § 401.101 Instructions to applicants.

(a) Each request for a determination must be submitted in writing to the appropriate district director and contain a complete statement of all relevant facts relating to the act or transaction. Such facts include names, addresses, and identifying numbers of all affected parties (if reasonably ascertainable); a full and precise statement of the business reasons for the act or transaction (where appropriate); and a carefully detailed description of the act or transaction. In addition, true copies of all contracts, agreements, leases, instruments, and other documents involved must be submitted with the request. However, relevant facts reflected in documents submitted must be included in the statement and not merely incorporated by reference, and must be accompanied by an analysis of their bearing on the issue or issues, specifying the pertinent provisions. The request must contain a statement whether, to the best of the knowledge of the applicant or his representative, the identical issue is being considered by any field office of the Service (or other governmental agency) in connection with a possible violation of economic stabilization regulations or guidelines by the person who is the subject of the requested determination. The request must also contain a statement as to whether the applicant or his representative has previously requested a determination with respect to the subject matter of the requested determination from any office of the Service or Office of Chief Counsel for Internal Revenue Service or any other governmental agency, detailing the disposition of any such previous request, or has filed an application for an exception or an exemption, or if a pay challenge has been filed with respect to the subject matter of the requested determination. 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 Internal Revenue Service file and cannot be returned, the original documents should not be submitted.

(b) If the applicant is contending for 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 Internal Revenue Service, including the Office of the Chief Counsel, in connection with the request, he must be a person who complies with the appearance requirements of Subpart H of this part. Such representative must not be under disbarment or suspension to practice before the Internal Revenue Service. 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 issues or issues involved should indicate such desire in writing when filing the request or soon thereafter in order that the conference, if granted, may be arranged at that stage of consideration when it will be most helpful.

(f) It is the practice of the Service 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 fo 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 a ruling or interpretation which includes, or could be construed to include, an application for an exception, exemption, or a pay challenge will nonetheless be treated solely as a request for a ruling or interpretation, as appropriate, and processed as such.

[37 F.R. 1010, Jan. 21, 1972, as amended at 37 F.R. 6654, Apr. 1, 1972; 37 F.R. 11669, June 10, 1972; 37 F.R. 17375, Aug. 26, 1972]

Subpart C-Interpretations and
Rulings Issued to a Person

§ 401.201 Introduction.

a

Co

OF

It is the practice of the Internal Revenue Service to answer inquiries of individuals and organizations, whenever. Cire appropriate in the interest of sound ad- ec ministration of the President's Economic Stabilization Program, as to the application to them of the regulations and guidelines promulgated by the Cost of Living Council, Pay Board, and Price Commission in their acts and transactions. One of the functions of the Office of the Chief Counsel for the Internal Revenue Service is to issue rulings in such matters. District directors apply the regulations and guidelines promulgated by the Cost of Living Council, Pay Board, and Price Commission rulings published in the FEDERAL REGISTER, and other precedents in issuance of interpretations in answer to citizen's inquiries or requests as to the application to them of the regulations and guidelines promulgated by the Cost of Living Council, Pay Board, and Price Commission. § 401.202

Who may file.