Rp 2015-41

HIGHLIGHTS
OF THIS ISSUE

Bulletin No. 2015–35
August 31, 2015

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

INCOME TAX

EXCISE TAX

(Continued on the next page)

Finding Lists begin on page ii.

ADMINISTRATIVE

Rev. Proc. 2015– 41, page 263.
The revenue procedure provides guidance on the process of
requesting and obtaining an advance pricing agreement
(“APA”) and information on the administration of APAs. The
revenue procedure updates and supersedes Rev. Proc.
2006 –9, as modified by Rev. Proc. 2008 –31, which is also
superseded.

Internal Revenue Code § 482: Allocation of income
and deductions among taxpayers

Rev. Proc. 2015– 41
SECTION 1. PURPOSE,
BACKGROUND, RULES OF
CONSTRUCTION, AND
DEFINITIONS
SECTION 2. SCOPE AND GENERAL
APPLICATION
SECTION 3. PROCEDURES FOR
FILING APA REQUESTS
SECTION 4. ACTIONS ON APA
REQUESTS
SECTION 5. COORDINATION WITH
REV. PROC. 2015– 40 AND
ROLLBACKS
SECTION 6. LEGAL EFFECT OF AN
APA
SECTION 7. ADMINISTERING AN
APA
SECTION 8. RENEWING AN APA
SECTION 9. DISCLOSURE
SECTION 10. EFFECT ON OTHER
DOCUMENTS
SECTION 11. EFFECTIVE DATE
SECTION 12. PAPERWORK
REDUCTION ACT
SECTION 13. DRAFTING
INFORMATION
APPENDIX. APA REQUEST
REQUIREMENTS
SECTION 1. PURPOSE,
BACKGROUND, RULES OF
CONSTRUCTION, AND
DEFINITIONS
.01 Purpose and Background. This
revenue procedure provides guidance on
the process of requesting and obtaining
advance pricing agreements from the Advance Pricing and Mutual Agreement program (“APMA”), a constituent office of
the U.S. competent authority, within the
office of the Deputy Commissioner International, Large Business & International
Division. This revenue procedure also
provides guidance on administration of
executed APAs. This revenue procedure
updates and supersedes Rev. Proc.

Bulletin No. 2015–35

2006 –9, 2006 –1 C.B. 278, as modified by
Rev. Proc. 2008 –31, 2008 –1 C.B. 1133,
which is also superseded. This revenue procedure is being released in conjunction with
Rev. Proc. 2015– 40, 2015–35 I.R.B. 236,
which provides procedures and guidance on
the process of requesting assistance from the
U.S. competent authority under the provisions of U.S. tax treaties.
A proposed version of this revenue
procedure was released for public comment in Notice 2013–79, 2013–2 C.B.
653. This revenue procedure is issued following consideration of all public comments received by the IRS and the Treasury Department and also reflects the
continuing internal monitoring and modifications of APMA’s administrative procedures to ensure that the administration
of APAs is consistently principled, effective, and efficient.
The principal differences between this
final revenue procedure and the proposed
version in Notice 2013–79 may be summarized as follows:
(1) This revenue procedure clarifies
that if APMA requires, as a condition of
continuing with the APA process, that the
taxpayer expand the proposed scope of its
APA request to cover interrelated matters
(interrelated issues in the same years, covered issues or interrelated issues in other
years, and covered issues or interrelated
issues in the same or other years as applied to other countries), APMA will do
so with due regard to considerations of
principled, effective, and efficient tax administration and only after considering the
views of the taxpayer and the applicable
foreign competent authority. Further,
APMA will communicate to the taxpayer
any concerns about interrelated matters
and possible scope expansion as early as
possible. Examples are provided of interrelated matters. See section 2.02(4).
(2) In the interest of efficient tax administration, rollback years may be formally covered within an APA. A rollback
will be included in an APA when a rollback is either requested by the taxpayer
and approved after coordination and collaboration between APMA and other offices within the IRS or, in some cases, is
required by APMA, after coordination and
collaboration with other offices within the
IRS, as a condition of beginning or con-

263

tinuing the APA process. See sections
2.02(4)(c), 3.03(2), 3.08, and 5.02.
(3) This revenue procedure provides
expanded guidance as to when an APA
request will be considered complete. See
section 3.03(3).
(4) The required contents of APA requests that were specified in the Appendix
of the proposed revenue procedure have
been refined but generally retained, which
APMA continues to view as necessary to
conduct informed and efficient evaluations of APA requests.
(5) As stated in Notice 2013–79, taxpayers are required to execute consent
agreements to extend the period of limitations for assessment of tax for each year
of the proposed APA term, and the required consent could be either general or
restricted. This revenue procedure expressly provides that APMA will coordinate and collaborate with other offices
within the IRS and with the taxpayer on
the type of consent the taxpayer will be
instructed to execute, which, if restricted,
will follow standardized language provided by APMA. This revenue procedure
also provides that in certain cases, only
general consents will be used. See section
2.03(3).
(6) This revenue procedure increases
the user fees for APA requests and provides that total user fees may be reduced
for multiple APA requests filed by the
same controlled group within a sixty-day
period. See section 3.03(2) of the Appendix.
(7) This revenue procedure substantially restructures the proposed guidance
in Notice 2013–79 to improve clarity,
readability, and organization.
.02 Section References and Defined
Terms. Unless indicated by context or otherwise, section references are to the sections of this revenue procedure.
.03 Deadline References. If a deadline
under this revenue procedure falls on a
Saturday, Sunday, or a legal holiday in the
District of Columbia, the deadline is extended to the next succeeding day that is
not a Saturday, Sunday, or legal holiday in
the District of Columbia.
.04 Definitions. As used in this revenue
procedure, certain acronyms and other
terms have the meanings set forth in this
section.

August 31, 2015

U.S.-initiated adjustment
Unilateral APA
Unilateral APA request

A proposed or final adjustment made by the IRS to the taxable income of a taxpayer
An APA in which the covered issue(s), covered method(s), and APA terms and conditions are not premised upon an underlying competent authority resolution
A request to enter into a unilateral APA under this revenue procedure

SECTION 2. SCOPE AND GENERAL
APPLICATION
.01 Contact Information. APMA may
be contacted with general or specific questions about this revenue procedure by one
of the means identified in the Appendix.
Unless otherwise instructed by APMA,
any item (e.g., an APA request or a prefiling memorandum) that the taxpayer either is required or chooses to file with
APMA must be sent to APMA at the
address listed in the Appendix.
.02 Principles of Administering APAs.
(1) In February 2012, the IRS established APMA to oversee its APA program
and to act as the representative office of
the U.S. competent authority responsible
for handling competent authority cases
arising under the business profits and associated enterprises articles of U.S. tax
treaties. APMA also has shared responsibility for cases arising under the permanent establishment articles of U.S. tax
treaties. See section 2.01(3) of Rev. Proc.
2015– 40. In accordance with its mission,
APMA endeavors to administer the programs within its jurisdiction in a manner
that is consistent with U.S. tax treaty obligations and that secures the appropriate
tax bases of the United States and its
treaty partners, prevents fiscal evasion,
promotes consistency and reasonableness
in outcomes, and provides taxpayers access to competent authority assistance and
to the APA process in accordance with
considerations of principled, effective,
and efficient tax administration.
(2) APMA’s APA program provides a
voluntary process whereby the IRS and
taxpayers may resolve transfer pricing issues and issues for which transfer pricing
principles may be relevant in a principled
and cooperative manner on a prospective
basis. Ancillary issues such as interest and
penalties may also be resolved, but only to
the extent to which APMA has authority
under the Code or under a U.S. tax treaty

Bulletin No. 2015–35

to resolve the issues. The APA process
increases the efficiency of tax administration by encouraging taxpayers to come
forward and present all the facts necessary
for a proper evaluation of their proposed
covered issues and to work towards a resolution of such issues in a spirit of openness and cooperation. The voluntary and
prospective nature of the APA process
lessens the burden of compliance by giving taxpayers greater certainty regarding
covered issues and promotes the principled resolution of these issues by allowing
for their discussion and resolution in advance, before the consequences of such
resolution are fully known to either taxpayers or the IRS. As such, the APA process is intended to address issues that are
ongoing in nature or have already arisen
(or, based on firm commitments, are expected to arise). Conversely, the APA process is not available for addressing hypothetical or merely contemplated issues. In
particular, the taxpayer will not be permitted to use the APA process to obtain an
advance view of the IRS’s likely treatment of particular transactions (for example, business restructurings or intangible
development arrangements) the taxpayer
may be considering.
(3) The APMA Director, directly or by
delegation, may take any action – not contrary to statute, regulation, or treaty – necessary to carry out the intent of this revenue
procedure. Such actions include, but are not
limited to, declining to initiate or suspending or terminating the APA process (see
section 4.02(1)) and modifying the application of provisions contained in this revenue
procedure in particular cases (for example,
regarding time limits). Such actions are not
subject to administrative review.
(4) Scope of APAs
(a) In General. A taxpayer’s APA request will include one or more covered
issues, as applied to certain proposed taxable years, and (in the case of bilateral and
multilateral APA requests) involving one
or more foreign competent authorities. In

267

evaluating the taxpayer’s request, in some
cases APMA may also need to consider
additional, interrelated issues, additional
taxable years (including potential rollback
years, see sections 2.02(4)(c) and 5.02), or
additional treaty countries (collectively,
“interrelated matters”) in order to reach a
resolution that is in the interest of principled, effective, and efficient tax administration. APMA will endeavor to communicate to the taxpayer any concern about
interrelated matters, and any possible need
to expand the scope of the APA (as discussed below), as early as possible in the
APA process. APMA may do so, for example, when the taxpayer’s proposed covered issues are most reliably evaluated
together with other issues. See Treas. Reg.
§§ 1.482–1(f)(2)(i), 1.482–7(g)(2)(iv).
For specific examples of interrelated matters, see section 2.02(4)(b). In cases requiring consideration of interrelated matters, APMA will endeavor to reach a
resolution of the taxpayer’s proposed covered issues, but only to the extent that
such resolution is consistent with the
treatment of the identified interrelated
matters. Further, after considering the views
of the taxpayer and (if applicable) the foreign competent authority(ies) in such cases,
APMA may decide that it is not in the
interest of principled, effective, and efficient
tax administration to reach a resolution on
the taxpayer’s proposed covered issues
without also reaching a resolution on such
identified interrelated matters. In these circumstances APMA may condition its acceptance, continued consideration, or resolution of an APA request upon the
agreement of the taxpayer (and, if applicable, of the foreign competent authority(ies))
to expand the scope of the APA.
(b) Examples of Interrelated Matters.
APMA will always consider the taxpayer’s particular facts and circumstances and
the scope of the covered issue(s) as proposed in the APA request before deciding
that interrelated matters also need to be
considered. However, it is possible to

August 31, 2015

identify some common fact patterns in
which APMA will be more likely to so
decide.
(i) Assume that the taxpayer proposes
to cover a company’s license of intangible
property in certain years to a second company in the same controlled group, when
that intangible property had been sold in
an earlier year by the second company
(the licensee) to the first company (the
licensor). In such a case, APMA might
consider that the ongoing license should
be evaluated in a manner consistent with
the evaluation performed for the previous
sale (for example, using the same underlying assumptions unless there were specific reasons why certain assumptions
would have changed in the interim).
(ii) The taxpayer might propose to
cover the compensation for services provided by one company to a second company in the same controlled group, when
providing the services requires using intangible property that had been transferred
in an earlier year from the first company
to the second company as part of a business restructuring. In such a case, APMA
might seek to ensure that the services are
valued in a manner consistent with the
valuation done in connection with the restructuring, in the absence of some factual
reason why the valuations should not be
consistent.
(iii) In evaluating a platform contribution transaction (“PCT”) in a cost sharing
arrangement under Treas. Reg. § 1.482–7,
APMA might also consider whether the
intangible development costs in that arrangement are being properly shared.
(iv) Assume that the taxpayer makes a
bilateral APA request to cover sales of
goods from a manufacturer in a treaty
country to a U.S. distributor that is in the
same controlled group, when the U.S. distributor, in turn, resells most of these
goods to a distributor in another country
(which may or may not be a treaty country) that is in the same controlled group.
Before agreeing to a price that the U.S.
distributor should pay to the manufacturer, APMA might consider the price that
this distributor receives for its resale.
(v) Other examples of types of APA
requests that could involve interrelated
matters are listed among those for which a
pre-filing memorandum is required in section 3.02(4), such as cases involving

August 31, 2015

transactions within a global trading arrangement or involving hybrid entities or
entities disregarded for U.S. tax purposes.
(c) Rollbacks; Coordination between
APAs and Competent Authority Cases. An
APA is primarily a means to resolve coverable issues for prospective years (as defined in section 3.03(2)). However, an
APA can also be “rolled back” to cover
one or more earlier taxable years. When
rollback years are included, the APA term
will then comprise both rollback years and
prospective years (see sections 3.03(2)
and 3.08). Rollback years are defined in
section 3.03(2), and rollbacks are further
discussed in section 5.02. Rollback years
need not be, but typically are, the subject
of an ongoing or anticipated competent
authority case under Rev. Proc. 2015– 40.
In recognition of these connections,
APMA views APAs and competent authority resolutions under Rev. Proc.
2015– 40 as being two interconnected
means by which taxpayers can manage
and address transfer pricing and other
cross-border tax issues for which transfer
pricing principles may be relevant. Accordingly, APMA will endeavor to address APA requests and competent authority requests under Rev. Proc. 2015– 40
in a way that will achieve substantive and
procedural consistency between the APA
process and the competent authority process under Rev. Proc. 2015– 40, and that
will provide resolution and certainty
across taxable years for taxpayers and the
IRS. For example, when warranted by
similarity of facts and circumstances
across taxable years, APMA will encourage and in some cases require (see section
2.02(4)(a)) a taxpayer to expand the scope
of its APA request to include a rollback
when a comprehensive resolution of coverable issues would further the interests of
principled, effective, and efficient tax administration. Conversely, when a taxpayer
that has sought APMA’s assistance for a
competent authority case under Rev. Proc.
2015– 40, APMA may request (but will
not require) that the taxpayer also pursue
ACAP to extend the competent authority
resolution from that case to cover one or
more of its ACAP years (see section 2.04
of Rev. Proc. 2015– 40). In such cases,
APMA may also encourage (but will not
formally request or require) the taxpayer
to further extend the competent authority

268

resolution into an APA as a means of
obtaining certainty in future taxable years
(see section 2.05 of Rev. Proc. 2015– 40).
The relationship between APAs, competent authority cases under Rev. Proc.
2015– 40, and ACAP is addressed in
more detail in section 5 and in Rev.
Proc. 2015– 40.
(d) Preference for Bilateral and Multilateral APAs. APMA’s interest in coordinating APAs and competent authority
cases under Rev. Proc. 2015– 40 is also
reflected in its preference for bilateral and
multilateral APAs over unilateral APAs.
To minimize taxpayer and governmental
uncertainty and administrative cost, bilateral and multilateral APAs are generally
preferable to unilateral APAs. If a taxpayer requests a unilateral APA to cover
any issue that could be covered under a
bilateral or multilateral APA under the
applicable tax treaty(ies), the taxpayer
must explain in a pre-filing memorandum
(see section 3.02(4)) why it believes that a
unilateral APA is appropriate to cover that
issue. The taxpayer might state, for example, that it believes that there is no APA
process with the treaty country, or that the
taxpayer’s proposed covered issues involve so many treaty countries that the
taxpayer believes that bilateral APAs or a
multilateral APA would be impractical.
After taking into account the taxpayer’s
views expressed in the memorandum (and
in a pre-filing conference if one is held,
see section 3.02), APMA will inform the
taxpayer whether it will accept a unilateral
APA request. APMA may reject a taxpayer’s unilateral APA request for various
reasons, particularly when accepting it
would contravene procedures and practices established with particular treaty
partners. Further, even if APMA and a
taxpayer sign a unilateral APA, APMA
might subsequently decline to consider a
competent authority request for an issue
that could reasonably and practically have
been covered if the taxpayer had instead
pursued a bilateral or multilateral APA.
See section 7.02 of Rev. Proc. 2015– 40.
This would particularly be the case when
APMA has already expended resources
and fully considered the taxpayer’s arguments in reaching a unilateral APA and
when a reasonably foreseeable outcome of
the competent authority case would be a
reduction in U.S. taxable income beyond

Bulletin No. 2015–35

the level to which APMA and the taxpayer had agreed in the unilateral APA. In
the same vein, under the example described in section 2.02(4)(b)(iv), if the
taxpayer is unwilling to expand the scope
of the APA request to include the competent authority of a second treaty country,
and APMA nevertheless is willing to
reach an APA, APMA might subsequently
decline to consider a MAP request concerning the resale of the goods to the
distributor in that second treaty country.
In deciding whether to pursue a bilateral
or multilateral APA rather than a unilateral APA, or to expand the scope of the
APA request to include the competent authority of a second treaty country, taxpayers should bear in mind that a failure to
timely request competent authority assistance may adversely affect the availability
of the foreign tax credit. See Treas. Reg.
§ 1.901–2(e)(5) and Rev. Rul. 92–75,
1992–2 C.B. 197.
(5) APMA is available for informal
consultations with taxpayers within or
outside of the APA process. Such consultations may address potential covered issues, and the APA process in general.
Statements or representations, whether
oral or written, made by APMA in connection with such consultations are informal only and are not binding on the IRS.
Such consultations may be by telephone,
written, and/or in person. Such consultations may relate to taxpayers whose identities remain anonymous to APMA, and in
such cases may include participation of a
taxpayer’s officers or employees on an
anonymous basis.
.03 General Requirements for
Initiating and Continuing the APA
Process.
(1) To initiate the APA process, the
taxpayer must (i) meet the pre-filing requirements set forth in section 3.02, as
applicable, (ii) submit a complete APA
request, as explained in section 3.04(1),
and (iii) pay the correct user fee, as described in section 3.05 and as instructed in
the Appendix.
(2) Throughout the APA process, the
taxpayer must supplement its APA request and provide updated information in
accordance with sections 3.09 and 3.10.
(3) Throughout the APA process, the
taxpayer and the IRS will execute consent

Bulletin No. 2015–35

agreements as necessary to extend the period of limitations for assessment of tax
for each proposed APA year (including
both proposed prospective years and proposed rollback years). Each required consent agreement will be either general or
restricted, as specified in this section. A
restricted consent will not be appropriate
for a proposed APA year for which an
issue other than the proposed covered issues is under ongoing or potential examination by the IRS.
(a) Requirement for APA Request. As
of the date the APA request is filed, the
remaining period of limitations for assessment of tax for each proposed APA year
must be at least two years. If the remaining period of limitations for a proposed
APA year is less than two years from such
date, then the request must contain an
executed general consent to extend the
period of limitations for assessment of tax
for the proposed APA year(s) to at least
two years.
(b) Ongoing Requirement. For each
proposed APA year, as the APA process
progresses, the taxpayer must submit executed consents to the IRS to extend the
period of limitations for assessment of tax
as specified in this section 2.03(3)(b). An
executed consent must be submitted no
later than twelve months before the end of
the remaining period of limitations. Unless the taxpayer is otherwise instructed
by APMA, each such consent must extend
such period by at least one year. In most
cases, the taxpayer should submit a general consent for this purpose. However, if
there are no issues other than the proposed
covered issues under examination by the
IRS for a proposed APA year, then the
taxpayer may request a restricted consent
under this ongoing requirement. Requests
for restricted consents must be made in
writing no later than fifteen months before
the end of the remaining period of limitations, and include the taxpayer’s views on
why a restricted consent is appropriate in
light of its circumstances. APMA will
then coordinate and collaborate with other
offices within the IRS and inform the taxpayer of the type of consent to be executed (general or restricted). Any restricted consent will be on a form
provided by APMA.
(4) An APA request, and an APA, must
be signed by each entity that comes within

269

the definition of “taxpayer” in section
1.04. Any requirement in this revenue
procedure applicable to the “taxpayer” is
applicable to each such entity, except as
agreed between APMA and the taxpayer.
SECTION 3. PROCEDURES FOR
FILING APA REQUESTS
.01 General. This section sets forth
procedures, rules, and guidelines relevant
to filing an APA request. This section also
addresses the taxpayer’s obligations before and after filing the request. Instructions on preparing and filing an APA request are also set forth in the Appendix.
.02 Pre-filing Requirements and
Requests for Pre-filing Guidance.
(1) General. In the interest of making
the APA process effective and efficient,
APMA invites, and in some cases requires, the taxpayer to meet with APMA
in a pre-filing conference prior to filing
the APA request. For the same reason,
APMA invites, and sometimes requires,
the taxpayer to submit a pre-filing memorandum prior to filing the APA request.
Pre-filing requirements are set forth in
sections 3.02(3) through 3.02(7).
(2) APA Requests Eligible for Small
Case APA User Fee. The pre-filing requirements set forth in sections 3.02(3)
through 3.02(7) do not apply to APA requests that are eligible for the small case
APA user fee. A taxpayer that seeks to file
such an APA request may submit the
small case APA user fee together with a
complete APA request, or may first contact APMA to discuss filing an abbreviated APA request or to discuss any other
procedural or substantive issue.
(3) Requesting Pre-filing Conferences.
A taxpayer that wishes to hold a pre-filing
conference with APMA must submit its
request as part of a mandatory pre-filing
memorandum filed pursuant to section
3.02(4) or an optional pre-filing memorandum filed pursuant to section 3.02(5).
(4) Mandatory Pre-filing Memoranda.
A pre-filing memorandum that identifies
the taxpayer must be filed if:
(a) the taxpayer wishes to file a unilateral APA request to cover an issue that
could be covered under a bilateral or multilateral APA under the pertinent tax treaty(ies) (see section 2.02(4)(d));

August 31, 2015

(b) the taxpayer seeks permission to
file an abbreviated APA request pursuant
to section 3.04(2); or
(c) the covered issue(s) proposed by
the taxpayer will, or could reasonably be
expected to, involve any of the following:
(i) the license or other transfer of intangibles in connection with, or the development of intangibles under, an intangible
development arrangement, (ii) a global
trading arrangement, (iii) a business restructuring, or the use of intangibles
whose ownership changed as a result of a
business restructuring, or (iv) unincorporated branches, pass-through entities, hybrid entities, or entities disregarded for
U.S. tax purposes.
This section is not intended to limit
anonymous informal consultations with
APMA as described in section 2.02(5).
For example, a taxpayer might engage in
informal consultations as described in section 2.02(5), including submitting an
anonymous memorandum, and subsequently file a pre-filing memorandum that
identifies the taxpayer and otherwise satisfies the requirements for a mandatory
pre-filing memorandum.
(5) Optional Pre-filing Memoranda. A
taxpayer may voluntarily submit a prefiling memorandum in cases other than
those set forth in section 3.02(4). Although not required, APMA generally recommends that a pre-filing memorandum
be submitted for APA requests that may
present novel or complex substantive or
procedural issues, and APA requests for
which APMA could reasonably have concerns regarding interrelated matters (see
section 2.02(4)). Optional pre-filing memoranda may be submitted on an anonymous basis. APMA generally recommends, however, that optional pre-filing
memoranda be provided on a named basis
so as to facilitate a more informed understanding of the procedural and substantive
issues that may arise during the APA process.
(6) Contents of Pre-filing Memorandum. A mandatory pre-filing memorandum must have a length and content appropriate to the size and complexity of the
covered issue(s) proposed by the taxpayer,
and must be primarily in memorandum
form but may be accompanied by diagrams, slides, spreadsheets, and similar
supporting materials. An optional pre-

August 31, 2015

filing memorandum must have a length
and content appropriate to the substantive
or procedural issues the taxpayer wishes
to raise with APMA, and may be in a
format chosen by the taxpayer. Whether
mandatory or optional, a pre-filing memorandum must also do the following:
(a) State whether the taxpayer seeks a
pre-filing conference and, if so, the issues
the taxpayer wishes to discuss;
(b) Propose at least three possible dates
for a pre-filing conference that normally
would be at least two weeks after the date
that the pre-filing memorandum is submitted, if either the pre-filing memorandum is
mandatory (whether or not the taxpayer
seeks a pre-filing conference, which might
be required by APMA) or the pre-filing
memorandum is optional and the taxpayer
seeks a pre-filing conference;
(c) Include covered issue diagrams if
the pre-filing memorandum is mandatory;
(d) If mandatory and if submitted pursuant to sections 3.02(4)(b) and 3.04(2)(a)
to seek permission to file an abbreviated
APA request, must (i) specify any information, documents, or other materials the
taxpayer proposes to omit from its APA
request, (ii) present the taxpayer’s arguments that the information, documents, or
other materials the taxpayer proposes to
omit from its APA request are not necessary for APMA’s evaluation of the APA
request, including if applicable the taxpayer’s arguments that the applicable law,
facts and circumstances, economic conditions, proposed covered issue(s) and
method(s), and other factors relevant to
the proposed APA years are substantially
the same as those relevant to the current
APA or the competent authority resolution as the case may be (see sections 5.01
and 8), and (iii) in the case of a proposed
renewal APA, summarize in a table the
results and adjustments under the current
APA, in absolute and (as applicable) percentage terms (e.g., operating margin),
with comparison to any arm’s length
points or ranges specified in the APA, and
also summarize any proposed changes in
terms from the current APA;
(e) List the name and contact information for the taxpayer’s point of contact
and, unless the pre-filing memorandum is
submitted on an anonymous basis, provide, as necessary, a Form 2848 authorizing the point of contact to represent the

270

taxpayer in connection with the APA request or a Form 8821 authorizing the
point of contact to inspect or receive confidential tax information about the taxpayer in connection with the APA request;
and
(f) Identify all open back years of the
taxpayer and which of such years, if any,
are under examination by the IRS.
(7) Place for Submission of Pre-filing
Memorandum. Two printed copies and
one electronic copy of the pre-filing memorandum must be submitted to APMA at
the address provided in section 4 of the
Appendix. The electronic copy of the prefiling memorandum must follow the rules
for media and format of electronic submissions described in section 2 of the Appendix.
(8) Actions Taken with Respect to Prefiling Conferences and Memoranda.
(a) APMA will notify the taxpayer
whether it will accept or decline the taxpayer’s request to hold a pre-filing conference. APMA may also require a pre-filing
conference to follow a mandatory prefiling memorandum even if the taxpayer
did not request a conference. If APMA
decides to hold a pre-filing conference, the
conference will address procedural and
substantive issues pertinent to the APA
request. During the conference, the taxpayer should be prepared to discuss the
relevant facts and circumstances surrounding the issue(s), method(s), and
terms and conditions it proposes to cover
in the APA, and (if applicable) the taxpayer’s justification for its request to file
an abbreviated APA request. If APMA
decides against holding a pre-filing conference, it will direct the taxpayer to proceed with its APA request (see section
3.04(2) regarding the situation in which
the taxpayer has sought permission to file
an abbreviated APA request).
(b) Unless the taxpayer has submitted a
mandatory pre-filing memorandum pursuant to section 3.02(4), which requires
identification of the taxpayer, or has otherwise identified the taxpayer, a pre-filing
conference may be held on an anonymous
basis. APMA generally recommends,
however, that pre-filing conferences be
held on a named basis to facilitate a more
informed discussion of procedural and
substantive issues that may arise during
the APA process.

Bulletin No. 2015–35

(9) Informal Advice in Pre-filing Conference. Statements or representations
made by APMA in a pre-filing conference
are informal and are, therefore, not binding on the IRS (see section 2.02(5)).
.03 Time for Filing.
(1) In General. APAs are intended to
apply primarily to prospective years, as
defined in section 3.03(2). APMA normally expects an APA request to be filed
early enough such that the proposed APA
term would cover at least five prospective
years (see section 3.08). This section 3.03
gives rules applicable to filing deadlines
and determinations. These rules reference
section 3.04, which provides guidance on
the content and form of complete APA
requests.
(2) Prospective Years, Rollback Years,
and Filing Deadline of Complete APA Request. An APA term will comprise prospective years and rollback years (if any).
Except as provided in section 3.03(2)(b), a
prospective year is a taxable year in an
APA term (or a requested APA term) for
which the taxpayer has filed a complete
APA request, or an APA request that is
considered complete (see section 3.03(3)),
as of a date that is no later than the applicable return date (as defined in section
3.03(2)(a)) for that taxable year. Any
APA year, or proposed APA year, ending
before the first prospective year will be a
rollback year (see generally section 5.02).
Depending on the taxable years that the
taxpayer proposes be covered by the APA
term and depending upon the date that
APMA considers the taxpayer’s APA request to be complete, the first prospective
year of the APA may or may not be the
same as what is proposed by the taxpayer.
For example, the taxpayer may file its
APA request intending that a certain taxable year be the first prospective year of
the APA. If, however, APMA determines
the APA request is not complete as of the
applicable return date for that taxable
year, then the taxable year the taxpayer
intended to be the first prospective year
will be considered to be a proposed rollback year. APMA will determine which
proposed APA year will be the first prospective year according to the provisions
of this section.
(a) Applicable Return Date. If the taxpayer timely files its U.S. return for a

Bulletin No. 2015–35

taxable year, the applicable return date for
that year is the later of (i) the actual filing
date, and (ii) the U.S. return’s due date
prescribed by statute without regard to
extensions. If the taxpayer does not timely
file its U.S. return for a taxable year, the
applicable return date for that year is the
U.S. return’s due date prescribed by statute without regard to extensions.
(b) Special Filing Deadline Rule for
Bilateral and Multilateral APA Requests. An additional filing deadline applies in the case of bilateral and multilateral APA requests. In order to better
coordinate the timing of discussions on
bilateral and multilateral APAs with foreign competent authorities, the taxpayer
should file a complete bilateral or multilateral APA request (or be considered
to have filed such a complete request
under section 3.03(3)) no later than 60
days after a corresponding bilateral or
multilateral request proposing to cover
substantially the same coverable issue(s) and APA years has been filed
with a foreign competent authority. For
this purpose, the filing of a corresponding request with a foreign competent
authority shall be understood to mean
the filing of a substantive request with
that foreign competent authority rather
than the mere filing of a notice of intent
to file a substantive request. If the taxpayer does not meet the deadline for
filing stated in this section 3.03(2)(b),
then the first APA year that otherwise
would be a prospective year under the
rules of this section 3.03(2) will be considered to be a rollback year. If the
taxpayer misses that deadline by more
than one year, then the first two or more
APA years (as determined by APMA in
its discretion) that otherwise would be
prospective years under the rules of this
section 3.03(2) will be considered to be
rollback years.
(3) Date as of Which APA Request
Considered Complete.
(a) In General. In certain cases, a complete APA request will be considered to
be filed on a date earlier than the date on
which it is actually filed. Specifically, the
curing of certain deficiencies in an APA
request could relate back to the original
filing date (see section 3.04(1)). The curing of an incorrect user fee could in exceptional cases relate back to the original

271

date of payment (see section 3.05). The
filing of an APA request will in certain
cases relate back to the date on which the
user fee was paid (see section 3.03(3)(b)).
More than one of these provisions just
cited could apply in combination to the
same APA request. For example, a complete APA request could be considered to
have been filed by a particular date if (i)
the user fee is paid by that date, (ii) an
APA request is filed within the 120-day
period specified in section 3.03(3)(b), and
(iii) that APA request is not complete
when filed, but prompt supplementation to
cure minor deficiencies as specified in
section 3.04(1) renders the APA request
complete. As stated in section 3.04(1),
APMA’s decision of whether, and when,
an APA request is complete or considered
complete is not subject to administrative
review.
(b) “Dollar File” Requests. For purposes of this section, APMA will consider
a complete APA request as having been
filed by a particular date if (i) the correct
user fee is paid (within the meaning of
section 7502(a) of the Code) by such date,
and (ii) a complete APA request is filed
within 120 days of such date. APMA may
agree to extend such 120-day period by 30
days for good cause if the taxpayer requests such an extension before the 120day period expires.
.04 Content and Form of Complete
APA Requests.
(1) In General. The Appendix sets
forth the required contents of an APA
request, identifies the order in which such
contents should be presented, and provides information and instructions on
other administrative matters relevant to
filing a request. APMA will consider an
APA request to be complete if it (1) is
accompanied by payment of the correct
user fee as specified in section 3.05, (2)
contains all the information required by
the Appendix (subject to any exceptions
agreed to by APMA), and (3) proposes
covered methods that provide a reasonable basis on which to consider resolution
of the proposed covered issues. For this
purpose, a subsequent remedy of minor
deficiencies, made promptly under the circumstances, will relate back to the time of
original filing. In exceptional circumstances, APMA may also allow a subse-

August 31, 2015

quent remedy of substantial deficiencies,
made promptly under the circumstances,
to relate back to the time of original filing.
(Regarding deficiencies in the payment of
the user fee, see section 3.05(3).) APMA’s
decision of whether, and when, a complete APA request is filed or considered
filed is not subject to administrative review. Any questions about filing an APA
request not addressed in this section or in
section 2 should be directed to APMA.
(2) Abbreviated APA Requests. The
taxpayer must obtain prior permission
from APMA to file an abbreviated APA
request. An abbreviated APA request that
the taxpayer files without such permission
will not be considered a complete APA
request under this section 3.04. An abbreviated APA request might be appropriate
for expansion of a competent authority
request under Rev. Proc. 2015– 40 into
APA years under the circumstances described in section 5.01(2), for APA renewals under the circumstances described
in section 8, in certain circumstances for
APA requests eligible for the small case
user fee as specified in section 3.04 of the
Appendix, and in other, exceptional circumstances. In evaluating the taxpayer’s
request to file an abbreviated APA request, APMA will consider that in most
cases it can most efficiently process an
APA request when the APA request itself
contains all documents reasonably needed
to evaluate that request, even if some of
those documents have been submitted before to the IRS. Before requesting permission to file an abbreviated APA request,
the taxpayer should consider whether the
documents that it proposes to omit from
the APA request could alternatively be
provided as exhibits to that request.
(a) Abbreviated APA Requests Not Eligible for Small Case APA User Fee. To
request permission to file an abbreviated
APA request that is not eligible for the
small case APA user fee as specified in
section 3.04 of the Appendix, the taxpayer
must file a pre-filing memorandum as described in sections 3.02(4) and 3.02(6)(d).
After reviewing the pre-filing memorandum and (if applicable) holding a prefiling conference (see section 3.02(8)(a)),
APMA will inform the taxpayer either
that APMA will accept an abbreviated
APA request (in which case APMA will
instruct the taxpayer on the content of the

August 31, 2015

request), or that APMA will require a
complete APA request.
(b) Abbreviated APA Requests Eligible
for Small Case APA User Fee. To request
permission to file an abbreviated APA request that is eligible for the small case
APA user fee, the taxpayer may contact
APMA informally to discuss the proposed
contents of the request. After discussion
with the taxpayer and consideration of any
written material submitted by the taxpayer, APMA will inform the taxpayer
either that APMA will accept an abbreviated APA request (in which case APMA
will instruct the taxpayer on the content of
the request), or that APMA will require a
complete APA request.
(3) Any information submitted by a
taxpayer in connection with its APA request must be true, correct, and complete
(see the Appendix). All exhibits and documents included in or referred to in the
APA request must be explained, as necessary, in sufficient detail to make their contents readily understandable. Such an explanation might include, for example,
definitions of terms used, explanations of
the goal and flow of calculations, the
sources of data, and the identity of a document’s creator and the purpose for which
it was created.
.05 User Fees.
(1) The user fee requirements and rules
of application are set forth in the Appendix. A taxpayer that seeks a decision on
the user fee applicable to its APA request
must contact APMA informally or submit
a pre-filing memorandum.
(2) The taxpayer must pay the applicable user fee no later than the date it files
the APA request. User fees must be paid
through the Pay.gov website.
(3) APMA will notify the taxpayer if it
has paid less than the correct user fee. In
such a case, the taxpayer has the option of
making up the difference or withdrawing
its APA request and receiving a refund of
the amount it has paid. In exceptional
cases, APMA may allow the remedy of
the insufficient user fee to relate back to
the date that the insufficient user fee was
paid for purposes of determining when a
complete APA request is considered to be
filed (see section 3.03(3)).
.06 APA Request as Protective Claim.
For proposed covered issues, a protective

272

claim for credit or refund may be made by
including the claim in a bilateral or multilateral APA request. To be a valid protective claim for credit or refund, the protective claim must fulfill the requirements
of section 11.02(3) of Rev. Proc. 2015–
40. See section 11 of Rev. Proc. 2015– 40
and the Appendix. For purposes of the
annual notification requirement of section
11.05 of Rev. Proc. 2015– 40, a protective
claim included in a bilateral or multilateral APA request shall be deemed to be
continuously filed for as long as the subject matter of that claim is under consideration by APMA as part of that APA
request.
.07 Effect of Filing. The submission of
a complete APA request, updated and supplemented in accordance with the requirements of this section 3, will be a factor
taken into account in determining whether
the taxpayer has met the documentation
requirements of Treas. Reg. § 1.6662–
6(d)(2)(iii) for the proposed APA years.
Submission of a complete APA request
does not, in itself, suspend examination or
enforcement
proceedings.
Although
APMA will coordinate within the IRS to
minimize duplicative requests in conducting its due diligence, the taxpayer remains
obligated to respond to information document requests issued, and according to
deadlines set, by other IRS offices in any
examination or enforcement proceedings.
.08 APA Term. The APA term will
comprise all of the prospective years and
rollback years (if any) covered by the
APA. In its APA request, the taxpayer
must propose a term for the APA that is
appropriate to the proposed covered issue(s) and to the commercial factors surrounding the taxpayer’s industry and
line(s) of business. Although the appropriate APA term will be determined on a
case-by-case basis, an APA request typically should propose at least five prospective years, unless the taxpayer states a
compelling reason to include fewer years.
Additionally, in the interest of principled,
effective, and efficient tax administration,
APMA typically will seek to set the APA
term so there are at least three unexpired
years (i.e., years that have not yet ended)
remaining in the APA term upon the execution of the APA (in the case of a unilateral APA) or upon the execution of the
underlying competent authority resolution

Bulletin No. 2015–35

(in the case of a bilateral or multilateral
APA). APMA may require that the taxpayer agree to extend the APA term in
order to achieve that goal. In the case of a
bilateral or multilateral APA, any proposed term extension will be coordinated
with the relevant foreign competent authority(ies).
.09 Requested and Supplemental Items.
(1) The information, documents, and
materials required for APA requests that
are identified in the Appendix might not
exhaust the items an APA team needs to
evaluate a given APA request. If the APA
team determines that it needs additional
information to analyze the APA request,
the taxpayer will be asked, and thereby
required, to provide such information. The
taxpayer (or, as the case may be, related
foreign taxpayers) must respond similarly
to requests made by a foreign competent
authority, as applicable. The APA team
will endeavor to present focused, targeted
requests for additional information. To the
extent possible, the APA team will request
information that the taxpayer would be
likely to maintain in its normal course of
business or information that is readily accessible or could be produced without
placing undue burdens on the taxpayer. In
this regard, the APA team will discuss and
consider reasons offered by the taxpayer
to modify the request or to provide other,
but still responsive, information to that
which was requested.
(2) In general, the taxpayer should be
prepared to provide both (or all) competent authorities with any written responses, analyses, or other documents that
it provides to one competent authority,
whether such materials are provided in
response to a request from a competent
authority or are submitted voluntarily by
the taxpayer in support of its APA request.
In the interest of minimizing administrative burdens, the APA team will work
with the taxpayer during the APA process
as necessary to find efficient procedures
for disseminating such materials to the
competent authorities, such as using indexes to catalogue the materials that
have been provided to each competent
authority.

Bulletin No. 2015–35

.10 Corrected and Updated
Information.
(1) After the APA request is filed, any
material errors or material omissions in
the APA request or in supplemental submissions must be promptly corrected or
remedied.
(2) The taxpayer must timely notify
APMA of all material changes and updates to information previously submitted
in connection with the APA request. The
taxpayer must also submit any information or documents discovered or created
during the APA process that are material
to the APA request.
(3) Any financial data that are produced in connection with the APA request
during the APA process, and that relate to
the application of the proposed covered
methods to the proposed covered issues,
must be updated annually or on a schedule
that is mutually acceptable to the taxpayer
and to APMA. In addition, the APA request must be supplemented with a demonstration of the application of the proposed covered method(s) to the actual
financial results of the applicable members of the proposed covered group for
each taxable year completed while the
APA request is pending. Such a supplemental submission must be provided
within 180 days of the close of the taxpayer’s taxable year, or by a date that is
mutually acceptable to the taxpayer and to
APMA. APMA recognizes that additional
time may be appropriate if the covered
methods require data from foreign parties
that have different taxable years than the
taxpayer. APMA may, at its discretion,
grant an extension or modify these requirements if the taxpayer provides written notification before the date the supplemental submission would otherwise be
due.
.11 Withdrawing the Request. The taxpayer may withdraw its APA request at
any time before it executes the APA.
APMA generally will not refund user fees
if the taxpayer withdraws its APA request
after APMA has begun its due diligence.
SECTION 4. ACTIONS ON APA
REQUESTS
.01 Decision Letter and Contact Information. APMA will notify the taxpayer in
writing that it has received the APA re-

273

quest. The letter will also provide the
name and contact information of the APA
team leader to whom the request has been
assigned. In addition, the letter will: (1)
state that the request is complete and that
the APA process will proceed (and, if
applicable, that the taxpayer must take
certain administrative or procedural steps
pertaining to the APA request), (2) state
that the request is provisionally accepted
but that the APA process will not proceed
until specified deficiencies in the request
have been addressed, or (3) state that the
request is rejected and describe the circumstances, if any, under which the request might be accepted.
.02 Denial or Discontinuation of the
APA Process.
(1) APMA may decline to enter into or
continue with the APA process, either at
the outset by rejecting the APA request or
by terminating or suspending the APA
process after it has accepted the APA request. APMA may take such actions if, for
example, any of the circumstances described in, or similar to those described in,
section 7.02 of Rev. Proc. 2015– 40 are
present, including failure to include the
materials required by this revenue procedure in the APA request (see section 3) or
the materials requested by the APA team
during the APA process. APMA also will
terminate the APA process for a requested
unilateral APA if agreement cannot be
reached on the APA’s terms. For requested bilateral and multilateral APAs,
APMA may terminate the APA process if
a competent authority resolution is not
reached; however, in some cases APMA
and the taxpayer might then agree to execute a unilateral APA.
(2) If APMA declines to continue with
the APA process after the process has
begun, APMA will determine whether to
refund the taxpayer’s user fee. APMA will
base its decision on various considerations, including the extent of the due
diligence and analysis the APA team had
undertaken before further assistance is denied.
(3) APMA’s decision to decline to initiate, or to suspend or terminate, the APA
process is not subject to administrative
review.

August 31, 2015

.03 Initial Stages of APA Process.
(1) The APA team leader will contact
the taxpayer once APMA has determined
that the APA request is complete and that
the APA process should continue. In most
cases, the next step in the APA process is
to hold an opening conference. However,
depending on its experience and familiarity with the proposed covered issue(s) and
method(s) and other aspects of the APA
request, the APA team may determine that
an opening conference is not needed. Generally, the APA team will forego an opening conference only if it has no substantial
disagreement with what the APA request
proposes. If the APA team decides to hold
an opening conference, the APA team
leader will work with the taxpayer to set a
date for the conference. The APA team
may request that the taxpayer provide responses to specific questions from the
APA team about the APA request before
the opening conference or at the opening
conference. The APA team leader may set
or agree to a due date before the opening
conference for such responses and may
postpone the opening conference if the
responses are not provided by that date.
(2) An opening conference is intended
to facilitate the APA team’s understanding of the facts and circumstances underlying the taxpayer’s proposed covered issue(s), covered method(s), and terms and
conditions. The opening conference may
also involve a discussion of the taxpayer’s
reasons for its selection of its proposed
covered method(s). The APA team may
also explore matters potentially interrelated with the proposed covered issues
and discuss the possibility of including
additional coverable issues, treaty countries, or years in the APA (see section
2.02(4)). At the opening conference, the
taxpayer should be prepared to discuss the
APA request in detail and to respond as
fully as possible to questions about the
facts and the proposals. In many cases, the
discussion will focus on the taxpayer’s
responses to the APA team’s questions
provided in advance of the opening conference (see section 4.03(1)).
(3) The opening conference may also
cover procedural matters, including
whether a case plan will facilitate the
APA team’s evaluation of the taxpayer’s
APA request, and, if so, at what point in

August 31, 2015

the APA process it may be useful for the
APA team to adopt a case plan. Ordinarily, a case plan will be adopted to facilitate
efficient processing of the taxpayer’s APA
request. With or without a case plan, the
APA team will endeavor to move through
the APA process efficiently, given the
scope and complexity of the proposed
APA and the due diligence and analysis
the APA team needs to undertake. In preparing a case plan, the APA team and the
taxpayer will discuss milestones, which
will depend on the nature of the covered
issue(s), the quality of the APA request
and any responses already provided by the
taxpayer, and the further due diligence
and analysis required. The time estimates
for these milestones as reflected in a case
plan are subject to revision. The time required to achieve milestones can be affected by various factors including (a) the
quality and timeliness of information provided by the taxpayer, (b) the need to
consider interrelated matters (see section
2.04(4)), (c) the emergence of unanticipated issues (for example, because of a
change in the facts), (d) in the case of
bilateral or multilateral APA requests,
when the foreign competent authority(ies)
are prepared to discuss the case, and (e)
the ease with which an agreement can be
reached with the taxpayer for unilateral
APA requests or with the foreign competent authority(ies) for bilateral and multilateral APA requests.
.04 Evaluation and Presentation
Stage of APA Process for Bilateral and
Multilateral APA Requests.
(1) In evaluating a bilateral or multilateral APA request, the APA team will consider requests from, and may invite or
require, the taxpayer to make presentations jointly to the APA team and to the
foreign competent authority(ies). The provision of such information simultaneously
to all competent authorities could facilitate efficient case processing. The APA
team will consult as needed with the foreign competent authority(ies) as to its interest in joint presentations, and will notify the taxpayer accordingly.
(2) During the APA process, the APA
team may also request teleconferences or
in-person meetings with the taxpayer to
discuss questions or concerns the APA
team may have about the taxpayer’s APA

274

request, or to discuss the APA team’s
provisional views on the request or aspects of the request. The APA team may
also invite the taxpayer to provide written
responses to memoranda discussing such
issues. For example, the APA team may
invite the taxpayer to respond to questions
or concerns the APA team has about the
discount rate the taxpayer has chosen for a
discounted cash flow analysis and to provide its comments regarding a different
discount rate that the APA team considers
a viable alternative. Depending on the
case, the APA team may simultaneously
provide such invitation to the taxpayer
and a copy to the foreign competent authority(ies) and invite the taxpayer to direct its responses to both the foreign competent authority(ies) and the APA team.
(3) The APA team may reach a point in
the APA process when it prepares to formally present its view on the APA request
to the foreign competent authority(ies). At
this point, the APA team will convey the
substance of its views to the taxpayer,
generally in a paper or memorandum having a length, content, and format appropriate to the scope and duration of the
APA process and to the size and complexity of the proposed covered issue(s) and
method(s) and other relevant facts and
circumstances surrounding the case. In
some cases, the APA team may present
the paper or memorandum to the taxpayer
for its comment before the APA team
formally presents its views to the foreign
competent authority(ies). In other cases,
the APA team may issue the paper or
memorandum simultaneously to the taxpayer and to the foreign competent authority(ies). The taxpayer would then be
invited to provide its comments to both
the APA team and the foreign competent
authority(ies) for their discussion and consideration towards reaching a competent
authority resolution. The decision as to
which approach is taken is within the discretion of the APA team.
(4) The APA team will then endeavor
with the foreign competent authority(ies)
to reach a competent authority resolution
that will underlie the APA that will be
executed between the taxpayer and the
IRS. The mutual agreement procedure article in arbitration treaties requires that the
competent authorities refer certain cases
to mandatory arbitration in the event di-

Bulletin No. 2015–35

rect discussion between the competent authorities does not lead to a mutual agreement within a prescribed time period.
Taxpayers requesting bilateral or multilateral APAs should consult the mutual
agreement procedure article under the applicable U.S. tax treaty to determine
whether it is an arbitration treaty and the
extent to which mandatory arbitration applies to cases initiated by bilateral or multilateral APA requests under such treaty.
See section 10 of Rev. Proc. 2015– 40.
.05 Evaluation and Presentation
Stage of APA Process for Unilateral
APA Requests.
Many of the steps involved in the evaluation and presentation stage of the APA
process as applied to unilateral APA requests are similar to those relating to bilateral and multilateral APA requests. For
example, at various points the APA team
may invite the taxpayer to respond, either
orally or in writing, as appropriate, to its
questions or concerns about, or provisional views on, the APA request. The
primary difference is that, in the case of a
unilateral APA request, the APA team and
the taxpayer will proceed directly to finalize an APA after the APA team has completed its due diligence and evaluation of
the APA request and the APA team and
the taxpayer have agreed to the APA’s
covered issue(s), covered method(s), and
terms and conditions.
.06 Execution of Agreement.
With regard to either a unilateral APA
or a bilateral or multilateral APA, the
agreement will become effective on the
date when it is has been executed by both
the IRS and each entity included within
the definition of the taxpayer in section
1.04, and the APA then will have effect as
provided therein. When an APA’s covered
group includes a member of a consolidated group other than the common parent
(as defined in Treas. Reg. § 1.1502–1), the
common parent must sign the APA as
provided in Treas. Reg. § 1.1502–77. The
person who signs an APA for a corporation must be an authorized officer of that
corporation, have personal knowledge of
the APA’s covered issue(s), covered
method(s), and terms and conditions, perform duties not limited to obtaining letter

Bulletin No. 2015–35

rulings or determination letters from the
IRS or entering into APAs, and have authorization to sign that corporation’s income tax return pursuant to section 6062
of the Code. An APA for a non-corporate
taxpayer must be signed by an individual
who has personal knowledge of the
APA’s covered issue(s), covered method(s), and terms and conditions, and who
is authorized to sign that taxpayer’s income tax return pursuant to section 6061
or 6063 of the Code, as applicable. In the
case of a partnership, APMA may additionally require that some or all partners
sign the APA. Any questions about the
required signatory or signatories of an
APA should be directed to the APA team
leader.
.07 Not an Examination. APMA’s
evaluation of the APA request will not
constitute an examination or inspection of
the taxpayer’s books and records under
section 7605(b) or other provisions of the
Code.
SECTION 5. COORDINATION WITH
REV. PROC. 2015– 40 AND
ROLLBACKS
.01 Extension of a Competent
Authority Resolution under Rev. Proc.
2015– 40 to an APA.
(1) Under Rev. Proc. 2015– 40, APMA
may propose that a taxpayer pursue
ACAP to extend a competent authority
resolution in its competent authority case
to one or more ACAP years. APMA may
also discuss with the taxpayer the possibility of extending the competent authority resolution forward into an APA.
(2) A request to extend a competent
authority resolution under Rev. Proc.
2015– 40 forward into an APA may be
made either by filing a complete APA
request, or by filing an abbreviated APA
request with APMA’s permission pursuant to section 3.04(2). An abbreviated
APA request might be appropriate provided that the taxpayer establishes that the
applicable law, facts and circumstances,
economic conditions, proposed covered
issue(s) and method(s), and other relevant
factors surrounding the taxpayer’s proposed APA years are reasonably expected
to be substantially the same as such factors surrounding the years in its competent
authority case under Rev. Proc. 2015– 40.

275

.02 Rollbacks.
(1) An APA is primarily a means to
resolve coverable issues for prospective
years. However, an APA may apply the
covered methods (with appropriate modifications, if necessary) to one or more
earlier, rollback years. (See generally, section 3.03.) Typically the taxpayer requests
a rollback, but APMA may also consider a
rollback even in the absence of a taxpayer’s request.
(2) A rollback request generally should
be included in the taxpayer’s APA request
(see the Appendix). APMA may, in its
discretion, consider a later written request
for a rollback.
(3) Whether included in the APA request or in a subsequent written request,
the rollback request must include the same
kind of information regarding the proposed rollback years that is required to be
submitted regarding the proposed prospective years.
(4) After coordinating and collaborating with other offices within the IRS,
APMA will inform the taxpayer whether
its rollback request has been accepted for
consideration. Except in unusual circumstances, APMA will not agree to cover a
closed filed year with a rollback of a unilateral APA request. For a rollback that is
requested in conjunction with a bilateral
or multilateral APA request, APMA will
(i) agree to cover an open filed year only
if it would agree to accept a competent
authority or ACAP request covering such
year (see section 7.02 of Rev. Proc. 2015–
40), and (ii) agree to cover a closed filed
year only if it would agree to accept a
competent authority or ACAP request
covering such year and only if the applicable U.S. tax treaty(ies) allows the corresponding competent authority resolution
to be implemented in that filed year.
(5) Regardless of whether the taxpayer
pursues a rollback request, APMA reserves the right to coordinate with applicable IRS offices to pursue a rollback to
any or all of the taxpayer’s open back
years. In general, APMA will consider
taking such action where there is sufficient similarity in relevant facts and circumstances across the proposed prospective years and the taxpayer’s open back
years. APMA will inform the taxpayer in
writing, either before the APA process

August 31, 2015

begins or at any time during the APA process, whether it will pursue a rollback and
the back years it will seek to cover. If the
taxpayer refuses to accept a rollback, and
after considering the taxpayer’s reasons for
the refusal, APMA may decline to initiate
the APA process or may suspend or terminate the process if it has already begun (see
section 2.02(4)(a)). Even if APMA does not
require a rollback, APMA might still condition its agreement to an APA on the APA’s
terms being consistent with the tax treatment of issues in what might otherwise have
been one or more rollback years (see section
2.02(4)(a)).
(6) A rollback request submitted in
connection with a bilateral or multilateral
APA request is subject to the provisions
regarding coordination with IRS Appeals
set forth in section 6.04 of Rev. Proc.
2015– 40, and is subject to the requirement that the taxpayer submit a waiver of
ex parte communication (see Appendix,
section 1.03, Exhibit 4).
(7) A taxpayer’s rollback request submitted in connection with a bilateral or
multilateral APA request and involving a
taxable period and issue that are either
designated for litigation, in litigation, or
the subject of a judicial determination or
litigation settlement, or involving a taxable period for which the taxpayer otherwise is in litigation concerning its federal
tax liability will be governed by the provisions regarding coordination set forth in
section 6.05 of Rev. Proc. 2015– 40.
SECTION 6. LEGAL EFFECT OF THE
APA
.01 Binding Agreement. An APA is a
binding agreement between the taxpayer
and the IRS.
.02 Effect of Compliance. If the taxpayer
complies with the APA terms and conditions, the IRS will not contest the application of the covered method(s) to the covered
issue(s) of the APA except as provided in
this revenue procedure. The taxpayer remains otherwise subject to U.S. income tax
laws and applicable U.S. tax treaties.
.03 Scope of Agreement. Except as otherwise provided in this section, an APA
will have no legal effect except with respect to the taxpayer, taxable years, and
issues to which the APA specifically relates. If a covered issue is the transfer of
intangible property (which does not con-

August 31, 2015

stitute a platform contribution transaction
as defined in Treas. Reg. § 1.482–
7(b)(1)(ii)) within the meaning of Treas.
Reg. § 1.482– 4, the APA may provide
that such transfer will not be subject to
periodic adjustments, during or after the
APA term, under Treas. Reg. § 1.482–
4(f)(2) or (6). If a covered issue is a platform contribution transaction, the APA
may provide that such transaction will not
be treated as a Trigger PCT within the
meaning of Treas. Reg. § 1.482–7(i)(6)(i)
for purposes of making periodic adjustments, during or after the APA term, under Treas. Reg. § 1.482–7(i)(6).
.04 Use as Evidence. Unless provided
otherwise by written agreement or regulations, the IRS and the taxpayer may not
introduce the APA or non-factual oral and
written representations made in conjunction with the APA request as evidence in
any judicial or administrative proceeding
regarding any tax year, issue, or person
not covered by the APA. This paragraph
does not preclude the IRS and the taxpayer from agreeing to roll back the
APA’s covered method(s), or the IRS’s
use of any non-factual material otherwise
discoverable or obtained other than in the
APA process merely because the parties
considered the same or similar material in
the APA process.
.05 Use as Admissions. Unless provided
otherwise by written agreement or regulations, the IRS and the taxpayer may not
introduce a proposed, cancelled, or revoked
APA, or any non-factual oral or written representations or submissions made during the
APA process, as an admission by the other
party, in any judicial or administrative proceeding regarding any taxable year of the
requested APA term. This paragraph does
not preclude the IRS’s use of any nonfactual material otherwise discoverable or
obtained other than in the APA process
merely because APMA and the taxpayer
considered the same or similar material in
the APA process.
SECTION 7. ADMINISTERING THE
APA
.01 Reporting of Income, APA
Primary Adjustments, Conforming
Adjustments, and Repatriation of Funds.
(1) Reporting of Income and APA Primary Adjustments. The taxpayer’s report-

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ing of income, deductions, credits, allowances, basis, or any other item or element
affecting taxable income during the APA
term must clearly reflect the application of
the covered method(s) to the covered issue(s). In some cases, such reporting for
an APA year will require an adjustment to
the amounts shown in the taxpayer’s
books and records for that APA year
and/or to the amounts reflected on a U.S.
return (APA primary adjustment). An
“APA primary adjustment” for an APA
year must be reported (a) on a timely-filed
U.S. return for such APA year, (b) on an
amended U.S. return for such APA year
that is filed within 120 days of the APA’s
effective date, or (c) by an alternative
means that is specified in the APA. Manners (b) and (c) in the previous sentence
are permitted only if the original U.S.
return for such APA year is timely filed no
later than 60 days after the APA’s effective date. For an APA year for which the
taxpayer reports an adjustment under
manner (b) or (c), the computation of any
required estimated tax installments for the
taxable year will not take into account the
APA primary adjustment and any related
adjustments (see section 7.01(2)). Further,
for such an APA year, the taxpayer will
not be subject to the failure to pay penalties under sections 6651 and 6655 of the
Code, or the failure to make timely deposit of taxes penalty under section 6656
of the Code, by reason of the APA primary adjustment and any related adjustments.
(2) Conforming Adjustments and Repatriation of Funds. This section 7.01(2) applies only to APA primary adjustments
that arise from applying a covered method
that addresses the allocation of income,
deductions, credits, allowances, basis, or
any other item or element affecting taxable income between members of a controlled group. (Such allocation generally
would be governed for U.S. tax purposes
by section 482 or 367(d) of the Code, as
modified by any applicable treaty provision.) Thus, this section 7.01(2) would not
apply, for example, to APA primary adjustments attributable to a U.S. permanent
establishment of a foreign corporation.
(a) Need for Conforming Adjustments;
Payment of Funds. For an APA primary
adjustment, a further adjustment is needed
to conform the accounts of the affected

Bulletin No. 2015–35

members of the controlled group (conforming adjustment). In some cases the
“conforming adjustment” can be accomplished by a payment of funds between
the affected members; such payment is
referred to as a repatriation of funds when
the affected members are in different
countries.
(b) Application of Rev. Proc. 99 –32.
Rev. Proc. 99 –32, 1999 –2 C.B. 296, or
successor guidance, will govern the repatriation of funds to conform the accounts
following an APA primary adjustment,
unless the competent authority repatriation specified in section 7.01(2)(c) applies
to that APA primary adjustment.
(c) Competent Authority Repatriation.
For bilateral and multilateral APAs,
APMA will apply the rules and principles
set forth in section 4.02 of Rev. Proc.
2015– 40 governing competent authority
repatriation to determine the terms of any
repatriation of funds to conform the accounts following an APA primary adjustment, if competent authority repatriation
is agreed to as part of the competent authority resolution underlying the APA.
APMA will not include competent authority repatriation as part of the competent
authority resolution unless the following
two conditions are satisfied: (i) no person
(whether or not a “United States taxpayer”
within the meaning of Rev. Proc. 99 –32
or successor guidance) that will make or
receive repatriation payments would be
barred from making or receiving repatriation payments under the principles of section 3.01 or 3.03 of Rev. Proc. 99 –32 or
successor guidance, and (ii) the taxpayer
explicitly requests competent authority repatriation in its APA request, or in a supplemental written submission filed with
APMA prior to a tentative competent authority resolution being reached.
(d) Implementation in APA. Whether
unilateral, bilateral, or multilateral, the
APA will specify the terms of conforming
adjustments, including, but not limited to,
the terms of any repatriation of funds.
(e) Documentation in annual reports.
The taxpayer must document how the
conforming adjustment for any APA primary adjustment is made, including the
relevant amounts, timing, and manner of
all payments and deemed payments, and
must disclose these facts in the APA annual report for the APA year to which the

Bulletin No. 2015–35

APA primary adjustment relates (see section 7.02).
.02 Annual Reports.
(1) An APA annual report must be filed
for each APA year. The report must demonstrate the taxpayer’s compliance with
the APA terms and conditions, including
the amount of any APA primary adjustment for a given APA year. The report
must also include all other items required
by the APA and should disclose any pending requests to renew, modify, or cancel
the APA. In addition, the report must
identify and correct any materially false,
incorrect, or incomplete information submitted during the APA process that the
taxpayer discovers during the APA year.
(2) The taxpayer must file annual reports on or before the later of (i) the
fifteenth day of the twelfth month following the close of the APA year, and (ii) 90
days after the effective date of the APA.
APMA may agree to alternative filing
dates if requested by the taxpayer. For
bilateral and multilateral APAs, APMA
may require the taxpayer to simultaneously file a copy of the annual report with
the applicable foreign competent authority(ies).
(3) The taxpayer must file one original
annual report containing a signed original
of the “penalties of perjury” declaration,
one printed copy of the contents of the
original annual report, and one electronic
copy of the contents of the original annual
report. The taxpayer must file all three
copies of the annual report with APMA at
the address set forth in the Appendix. The
electronic copy of the annual report must
follow the rules for media and format of
electronic submissions described in the
Appendix. Upon request, the taxpayer
must file additional printed copies.
(4) The taxpayer will be notified if it is
necessary to clarify or complete the information submitted in the annual report. The
taxpayer must supply the additional information by the date specified in the notice.
(5) Any request that the taxpayer receives to clarify or complete information
in an annual report is not an examination
or the commencement of an examination
of the taxpayer for purposes of section
7605(b) of the Code or any other provision of the Code.

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(6) The taxpayer must amend its annual report within 45 days after becoming
aware of any information that is materially incomplete or incorrect or of any incorrect application of the covered method(s) presented in the report.
(7) APMA may, at its discretion, grant
an extension to submit the annual report if
the taxpayer provides written notification
of its request before the due date and
explains the circumstances necessitating
the extension.
(8) The annual report must contain the
following declarations, as applicable:
Under penalties of perjury, I declare
that I have examined this annual
report including accompanying documents, and, to the best of my
knowledge and belief, this annual
report contains all the relevant facts
relating to the annual reporting requirements pursuant to the APA,
and such facts are true, correct, and
complete.
[If applicable: An adjustment to
conform taxable income and other
relevant items to reflect the results
reported herein has been reported to
IRS Examination.]
[If applicable: An amended income
tax return to conform taxable income and other relevant items to
reflect the results reported herein
[has been] [will be] filed with the
appropriate Internal Revenue Service Center.]
(9) The taxpayer must sign the declaration(s) according to the instructions in
the Appendix regarding perjury statements.
(10) Failure to file an annual report that
is timely, complete, and accurate may be
grounds for canceling or revoking the
APA under section 7.06.
.03 Examination.
(1) With respect to the covered issue(s), the IRS will not reconsider the
covered method(s) but will instead limit
the examination of a taxpayer’s income
tax return in any given APA year to, and
may require that the taxpayer establish,
the following: (i) the taxpayer’s compliance with the APA terms and conditions,
(ii) the accuracy of the APA annual report’s material representations, and (iii)
the correctness of the supporting data and

August 31, 2015

computations used to apply the covered
method(s).
(2) The IRS may audit and propose
adjustments to the taxpayer’s results as
determined under the APA’s covered
method(s) without affecting the APA’s
validity or applicability. The taxpayer
may agree with the proposed adjustments
in the same manner as any other adjustment, in which case the IRS will assess
any resulting additional tax or refund any
resulting overpayment of tax accordingly.
If it does not agree with the proposed
adjustment, the taxpayer may contest it
through available administrative and judicial procedures. The taxpayer must include the audit adjustments as finally determined for the purpose of applying the
covered method(s), and must then make
any resulting APA primary adjustments.
.04 Record Retention.
(1) The taxpayer must maintain books
and records that are sufficiently detailed to
verify that it has complied with the APA
terms and conditions. The taxpayer’s
compliance with this paragraph fulfills the
record-keeping requirements of sections
6038A and 6038C of the Code as applied
to the covered issue(s).
(2) Upon examination of the covered
issue(s), IRS may request that the taxpayer submit additional information or
translate specific documents within 30
days. The IRS may extend this period for
good cause. The fact that a non-U.S. jurisdiction may impose a penalty upon the
taxpayer or other person for disclosing
any such requested material will not constitute reasonable cause for noncompliance with the IRS’s request.
.05 Revising the APA.
(1) An APA may be revised by agreement of the parties, and any such revision
is effective upon the date of the execution
of the revision. APMA may agree to revise an APA in lieu of canceling or revoking it.
(2) If APMA is willing to agree to a
revision proposed by the taxpayer to a
bilateral or multilateral APA, it will seek
the consent of the applicable foreign competent authority(ies) with respect to the
revision. If the U.S. and foreign competent authority(ies) agree to such revision,

August 31, 2015

or agree to another revision acceptable to
the taxpayer, then APMA will agree with
the taxpayer to revise the APA. If the U.S.
and foreign competent authority(ies) cannot so agree, the APA remains in force
without revision. However, in some cases
APMA and the taxpayer may then agree,
for U.S. domestic purposes, to (i) revise
the APA with respect to one or more APA
years, or (ii) cancel the APA as of a specific date.
.06 Revoking or Canceling the APA.
(1) APMA may revoke an APA due to
fraud or malfeasance (as those terms are
used in section 7121 of the Code), or
disregard (as that term is used in sections
6662(b)(1) and (c) of the Code) by the
taxpayer in connection with the APA, including, but not limited to, fraud, malfeasance, or disregard involving (i) material
facts in the request or subsequent submissions (including an annual report) or (ii)
lack of good faith compliance with the
APA terms and conditions.
(2) APMA may cancel an APA due to
the taxpayer’s misrepresentation, mistake
with respect to a material fact, failure to
state a material fact, failure to file a timely
annual report, or lack of good faith compliance with the APA terms and conditions.
(3) Unless the parties agree to revise
the APA, APMA will cancel an APA in
the event of a failure of a critical assumption or a material change in governing
case law, statute, regulation, or applicable
treaty.
(4) For purposes of this section 7.06(1)
and (2), APMA will consider facts material if, for example, knowledge of the facts
could reasonably have resulted in an APA
with significantly different terms and conditions. With respect to annual reports,
APMA will consider facts material if, for
example, knowledge of the facts would
have resulted in (a) a materially different
allocation of income, deductions, or credits than those reported in the annual report, or (b) the failure to meet a critical
assumption.
(5) APMA may waive cancellation if
the taxpayer can show good faith and reasonable cause and agrees to make all adjustments proposed to correct for the misrepresentation, mistake regarding a

278

material fact, failure to state a material
fact, or noncompliance.
(6) If APMA revokes an APA, the revocation relates back to the first day of the
first APA year. The IRS may (a) determine deficiencies in income taxes and additions thereto, (b) deny relief under Rev.
Proc. 99 –32 or successor guidance, (c)
allow the taxpayer relief under Rev. Proc.
99 –32 or successor guidance, but determine the interest on any account receivable established under section 4.01 of
Rev. Proc. 99 –32 or successor guidance
without mutual agreement or correlative
relief, (d) revoke the APA as an “egregious case” under Rev. Rul. 80 –231,
1980 –2 C.B. 219, to deny the taxpayer a
foreign tax credit, and (e) deny a request
for relief submitted under Rev. Proc.
2015– 40. APMA will seek to coordinate
these or any other actions concerning the
revocation of a bilateral or multilateral
APA with the foreign competent authority(ies).
(7) APMA’s cancellation of an APA
generally is effective as of the beginning
of the taxable year in which the critical
assumption failed or the beginning of the
taxable year to which the misrepresentation, mistake regarding a material fact,
failure to state a material fact, or noncompliance relates. If, however, the cancellation results from a change in case law,
statute, regulation, U.S. tax treaty, or coordination agreement, the cancellation
generally is effective at the beginning of
the year that contains the effective date of
the change in case law, statute, regulation,
U.S. tax treaty, or coordination agreement.
(8) For periods following the effective
date of the cancellation, the APA has no
further force and effect with respect to the
IRS and the taxpayer for U.S. income tax
purposes. APMA will seek to coordinate
any action concerning the cancellation of
a bilateral or multilateral APA with the
foreign competent authority(ies).
.07 Change in Case Law, Statute, Regulation, or Treaty. If controlling U.S. case
law, statutes, regulations, or treaties
change the federal income tax treatment
of any matter covered by the APA, the
new case law, statute, regulation, or treaty
provision supersedes any inconsistent
terms and conditions of the APA.

Bulletin No. 2015–35

SECTION 8. RENEWING THE APA
.01 General. A request to renew a current APA may be made either by filing a
complete APA request or by filing an abbreviated APA request with APMA’s permission pursuant to section 3.04(2). An
abbreviated APA request might be appropriate if the taxpayer can establish to APMA’s satisfaction that the applicable law,
facts and circumstances, economic conditions, proposed covered issue(s) and
method(s), and other relevant factors surrounding the current APA are reasonably
expected to be substantially the same as
those in the proposed renewal APA years.
.02 Timing. Taxpayers are encouraged
to file a request to renew a current APA at
least nine months before the expiration of
the final APA year.
SECTION 9. DISCLOSURE
.01 Confidentiality. An APA, any background information relating to an APA,
and the taxpayer’s APA request and any
supplementary materials submitted in
conjunction with the APA request are return information and are confidential. See
sections 6103, 6105, 894, and 7852(d) of
the Code.
.02 Not “Written Determinations.” An
APA, any background information relating to an APA, an APA request, and any
supplementary materials submitted in
conjunction with the APA request are not
“written determinations” and are not open
to public inspection. See section 6110 of
the Code.
.03 Statutory Report. The Secretary
must prepare an annual report for public
disclosure. See section 521(b) of the
Ticket to Work and Work Incentives Improvement Act of 1999, Pub. L. 106 –170,
113 Stat. 1860, 1925. That report includes
specifically designated information concerning all APAs, in a form that does not
identify taxpayers, their trade secrets, or
proprietary or confidential business or financial information.
.04 Exchange of Information. APAs,
annual reports, and factual information
contained in APA requests are subject to
exchange of information under U.S. tax
treaties or U.S. income tax information
exchange agreements in accordance with
the terms of such treaties and agreements
(including terms regarding relevancy,

Bulletin No. 2015–35

confidentiality, and the protection of trade
secrets). In cases in which the exchange of
information would be discretionary, information may be exchanged to the extent
consistent with principled, effective, and
efficient tax administration and the practices of the relevant foreign competent
authority(ies), including where relevant
the existence and application by the foreign competent authority(ies) of rules
similar to those described in sections 6.04
and 6.05.
SECTION 10. EFFECT ON OTHER
DOCUMENTS
Rev. Procs. 2006 –9, 2006 –1 C.B. 278,
and 2008 –31, 2008 –1 C.B. 1133, are
modified and superseded by this revenue
procedure. Rev. Proc. 2015– 40, 2015–35
I.R.B. 236 is amplified.
SECTION 11. EFFECTIVE DATE
AND TRANSITION RULE
.01 General. This revenue procedure
will apply to all APA requests filed under
this revenue procedure. An APA request
filed after August 31, 2015 may instead be
filed under Rev. Proc. 2006 –9 only if a
substantially complete APA request is
filed under that revenue procedure no later
than December 29, 2015. For purposes of
this section, the 120-day allowance in section 4.07(2) of Rev. Proc. 2006 –9 shall
not apply in determining the date on
which a substantially complete APA request is considered filed under Rev. Proc.
2006 –9. APA requests filed on or before
December 29, 2015 should clearly state
under which revenue procedure they are
filed.
.02 Rollbacks. Rev. Proc. 2006 –9 is
retroactively amended so that rollbacks
(within the meaning of section 8 of Rev.
Proc. 2006 –9) may be implemented and
given legal effect in an APA (within the
meaning of Rev. Proc. 2006 –9 as modified by Rev. Proc. 2008 –31, 2008 –1 C.B.
1133). This retroactive amendment applies to any APA governed by Rev. Proc.
2006 –9 that includes such a rollback.
SECTION 12. PAPERWORK
REDUCTION ACT
The collection of information contained in this revenue procedure has been
reviewed and approved by the Office of

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Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507) under control number
1545-1503.
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays
a valid control number.
The collection of information in this
revenue procedure is in sections 3.02,
3.04, 3.06, 3.09, 3.10, 4.04, 4.05, 5.01,
5.02, 7.02, 7.04 and 8.01 and in the Appendix. This information is required, and
will be used, to provide the IRS sufficient
information to evaluate and process the
APA request or to determine whether the
taxpayer is in compliance with the terms
and conditions of an APA. APMA will
use this information to evaluate the proposed covered method(s) and the taxpayer’s compliance with the terms and conditions of any APA to which it is a party.
The collection of information is required
to obtain an APA. The likely respondents
are business or other for-profit institutions.
The estimated total annual reporting
and/or recordkeeping burden is 10,900
hours.
The estimated average burden for an
APA pre-filing memorandum (and, if applicable, pre-filing conference) is 10
hours, the estimated average burden for an
APA request is 60 hours, and the estimated average burden for preparation of
an annual report by a party to an APA is
15 hours. The estimated number of respondents and/or recordkeepers is 390.
The estimated annual frequency of responses is one request or report per year
per applicant or party to an APA, except
that a taxpayer requesting an APA may
also submit a pre-filing memorandum
(and, if applicable, attend a pre-filing conference).
Books or records relating to a collection of information must be retained as
long as their contents may become material in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by section 6103 of the Code.

August 31, 2015

plus $30,000 for each foreign competent
authority involved (if any) beyond the first
two.
.04 Small Case APA User Fee
Eligibility. An APA request is eligible for
the small case APA user fee only if all of
the following apply: (i) the controlled
group has sales revenues, within the
meaning of Treas. Reg. § 1.482–5(d)(1),
of less than $500 million in each of its
most recent three back years, (ii) the aggregate value of the proposed covered issue(s) is not expected to exceed $50 million in any given year of the proposed
APA years, (iii) the aggregate value of
any transfer of rights in, or rights to use,
intangibles is not expected to exceed $10
million in any given year of the proposed
APA years, and (iv) no proposed covered
issue involves intangible property arising
Telephone
Website
Headquarters
Physical Location

Bulletin No. 2015–35

from, or otherwise related to, an intangible development arrangement.
.05 Fees for Amendments. For purposes of section 3.03 of this Appendix, an
amendment includes coverage of additional issues, material changes to a proposed covered method, and any other material additions or changes to the terms
and conditions of the APA. APMA will
not impose this amendment fee if APMA
or a foreign competent authority initiates
the request to amend the proposed covered issue(s) or method(s).

SECTION 4. ADDRESSES AND
CONTACT INFORMATION
Deputy Commissioner (International)
Large Business and International
Division
Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
SE:LB:IN:TPO:APMA:M3–370
(Attention: APMA)
All mail should be sent to this mailing
address, including regular mail, express
mail, overnight mail, and mail sent by
USPS, FedEx, UPS, or any other carrier.
Contact information for APMA and additional information is as follows.

Telephone numbers are available through the “contact us”
link on the APMA website
www.irs.gov/Businesses/Corporations/APMA
801 Ninth Street, N.W.
Washington, D. C. 20001
(Mail not accepted at this location)

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