Open a regulation project only with approval from an Assistant or Associate Chief Counsel and, if it will appear on the Guidance Priority List, the Treasury Department. Depending on the procedures adopted by each Assistant or Associate office, front office or branch personnel may open a regulation project on TECHMIS.

To open a regulation project, enter the TECHMIS "Add Case" screen and complete the required fields: category: PUBGUID, subcategory REG. In some circumstances, Counsel may decide to open the project using subcategory "PGP." TECHMIS generates a project number (CASE ID) that begins with "REG" (or "PGP" , if applicable). Use only this CASE ID for all phases of the regulation process, from drafting the ANPRM/NPRM to publishing the final regulation.

IRC § 7805(e) requires the Service to issue a cross-referencing NPRM when it issues temporary regulations. Open only one regulation project for temporary regulations with a cross-referencing NPRM. When the Service publishes the temporary regulations and cross referencing NPRM, update TECHMIS with status code 715 - TEMP/XREF Published. The CASE ID remains open until the Service publishes the NPRM as a final regulation or withdraws it and removes the temporary regulation.

Occasionally, Counsel and Treasury will decide to issue several final regulations with respect to one NPRM. The first final regulation project retains the original CASE ID. After publishing the first final regulation, close that CASE ID. Open a new CASE ID for each subsequent final regulation project. In the TECHMIS remarks screen for each subsequent final regulation project, note the name and original CASE ID of the underlying NPRM and all related final regulations. Also enter this information in the remarks screen for the first final regulation.

After opening the regulation project on TECHMIS, the drafting attorney creates a legal file maintains the legal file, is responsible for its contents, and retains it until the project is closed.

Punch holes at the top of the back cover of the legal file and all papers to be included in it. The first item in the file will be a copy of the TECHMIS control screen. Secure the papers with file fasteners. Label the file with the project title and CASE ID.

The legal file contains all documents germane to the publication of the regulation and, in accordance with Form 9506, Treasury Decision File Closing Information Sheet and Assembly Checklist , organized by subject files using Form 7881, Chief Counsel’s File. (Do not include duplicate material, any readily available printed matter [e.g., statutes and the associated legislative history, court decisions], or scraps, blank sheets, etc. that do not contain substantive information). The attorney establishing the file and the reviewing attorney sign and date Form 9506.

The subject files and materials to be included are:

Place handwritten notes and email communications in the appropriate subject matter file, in reverse chronological order.

Attach a copy of the Federal Register reprint to the cover of the legal file.

A regulations project is complete when the Service publishes an NPRM as a final regulation, withdraws a published NPRM without publishing final regulations, or decides not to publish a regulation. If the Service published a temporary regulation with a cross-referencing NPRM, the project is complete when the Service removes the temporary regulation and publishes the NPRM as a final regulation or withdraws the NPRM.

If the IRS publishes a final regulation, close the final regulation project on TECHMIS using status code 951 (closed - publication). If the IRS withdraws an NPRM and does not publish final regulations, use status code 960 (closed - withdrawn). If the IRS decides not to publish a regulation, use status code 952 (closed - non-publication). Refer to the TECHMIS handbook for additional status codes (closed - other, closed - transferred out, closed - opened in error), not described above.

All regulations projects close with classification code J (Regulation & Legislation Projects).

When the legal file for a TD (final and temporary regulations) is complete, label it with the TD number and submit it to the Docket, Records and User Fee Branch for storage.

The drafting attorney retains the NPRM file after the document is published as reference for (and to be included in the legal file for) the final regulations.

After the Service withdraws a regulation or closes a project without publishing it, assemble the legal file and send it to the Docket, Records and User Fee Branch in room 5336 for storage. The attorney should prepare a closing memorandum to include in the legal file.

Revenue Rulings, Revenue Procedures, and other nonregulatory Published Guidance help Service personnel apply the tax laws correctly and uniformly and help taxpayers comply with the tax laws.

Before opening a guidance project, it must be approved by the Associate Chief Counsel and, if it will appear on the Guidance Priority List, Treasury.

When approved, open the project on TECHMIS (category: Published Guidance, subcategory: RR, RP, or NOT as applicable) in accordance with the TECHMIS Users Handbook. Depending on the procedures adopted by the Assistant or Associate Office, Branch or front office personnel may open the project.

Project titles must refer to the issue addressed, not a taxpayer name. If the project pertains to a prior publication, the project title must begin with that publication (i.e. Rev. Rul. XX-XX Revocation, not Revocation of XX-XX).

TECHMIS generates a project number (CASE ID) that begins with "NOT" for Notices and Announcements, "RP" for Revenue Procedures, "RR" for Revenue Rulings, and "PGP" for projects without an assigned format. Use only this project number for all phases of the publication process, from drafting through publication.

The attorney drafting the published guidance project opens the legal file. The first item in the file will be a print-out of the TECHMIS control screen.

In general, the contents of the legal file for Revenue Rulings, Revenue Procedures, Announcements, and Notices will be the same. The legal file contains, in chronological order when possible:

Do not include handwritten notes or email communications unless they address substantive matters addressed in the published guidance.

If a publication is newsworthy, the Service may pre-publish (" early drop" ) a document, prior to its publication in the Internal Revenue Bulletin, by issuing a news release, making it available to the tax services, and posting it to the Service web site. Put a copy of the memorandum authorizing the "early drop" in the legal file.

When the Service publishes a revenue ruling or revenue procedure, close the project on TECHMIS with status code 951 (closed - published). For items the Service decides not to publish, use status code 952 (closed - non-publication). Refer to the TECHMIS user guide for additional status codes (e.g., closed - other, closed - transferred out, closed - opened in error) not described above.

Revenue Rulings and Revenue Procedures close with file retention code J - Revenue Ruling or Procedure. For Notices, close with status code B if the file is to be retained for reference, H if historical, and F if routine.

After issuing the published guidance, submit the legal file to the Docket, Records, and User Fee Branch for storage.

The legal file for AODs contains:

AOD assignments will be opened in the Associate office.

Closed AOD files will be forwarded to the Docket, Records and User Fee Branch for storage.

When the format of the published guidance project (e.g., Regulations, Revenue Ruling, Revenue Procedure, or Notice) has not been determined, a Published Guidance Project (PGP) on TECHMIS is opened, category: Published Guidance, subcategory: PGP. TECHMIS will generate a CASE ID beginning with "PGP."

The drafting attorney opens the legal file. The first item in the file will be the TECHMIS control screen.

PGPs are developed in the same manner as other published guidance projects. Accordingly, the contents of the PGP legal file will include the same material as the legal file for other published guidance.

When an Associate office determines the kind of published guidance to issue, open a new project on TECHMIS using the subcategory to which the PGP will be converted. Continue using the existing PGP legal file, conforming it to the appropriate specifications.

Close the PGP on TECHMIS, with status code 900 (closed - other) and classification code F (routine).

The team leader maintains and closes the official APA case file, insuring that the file contains the following material:

The official APA case file should not contain the original executed APA. The team leader should provide it to his/her secretary for safekeeping in the APA Docket Room.

There are two types of CAM and CAP cases, advanced consent for which taxpayers submit Form 3115, Application for Change in Accounting Method, and "automatics" .

Taxpayers address requests for CAMs and CAPs to the Docket, Records, and User Fee Unit (CC:PA:LPD:DRU). The DRU picks up the mail, screens the requests for subject matter jurisdiction, opens the case on TECHMIS, and creates a legal file. The CASE-ID will begin with the prefix CAM or CAP, as appropriate.

The legal file created by CC:PA:CRU contains the following:

As the initiating attorneys work on the case, they will include the following in the legal file:

Close CAM and CAP cases on TECHMIS (TECHMIS — CAM or CAP detail screen) with the appropriate closing status code.

After closing the CAM or CAP on TECHMIS submit the files for advanced consent cases to the Docket, Records, and User Fee Unit for storage. The retention schedule requires the Service to retain "automatics" for three years. After two years, the files may be retired to the Federal Records Center.

Taxpayers address requests for a PLR to the Docket, Records, and User Fee Branch (CC:PA:LPD:DRU). The DRU picks up the mail, screens the requests for subject matter jurisdiction, opens the case on TECHMIS, and creates a legal file. The CASE-ID will begin with the prefix PLR.

The DRU opens the PLR legal file. It contains:

As the initiating attorneys work on the case, they will include the following in the legal file:

Close the case on TECHMIS using the appropriate closing status code. Depending on the disposition of the case, enter one of the following file retention classification codes.

Submit the legal file to the DRU for processing and storage with the following items attached (top to bottom):

At the request of the Commissioner, the Office of Chief Counsel determines whether to grant taxpayers’ requests for relief pursuant to IRC § 9100. The opening and closing procedures for requests for 9100 relief and the contents of the legal file are the same as those outlined for private letter rulings. The legal file will also include:

Sometimes taxpayers request closing agreements in addition to or in lieu of private letter rulings. These requests are addressed similarly and processed by the DRU similarly to PLR requests. The CASE ID will begin with the prefix CLAG. The file created by the DRU will be similar to a PLR file. The drafting attorney, however, creates a CLAG Special File. The Special File is a temporary file in a manila folder containing all papers relating to the closing agreement. Mark the outside of the folder SPECIAL FILE and label it with the taxpayer name, CASE ID, and office symbol of the branch handling the case. The Special File contains the following:

After the appropriate officials sign the closing agreement and return it to the branch, photocopy the original closing agreement, prepare deleted copies in accordance with CCDM 32.3.4.7.4.1, Special File. The Associate Chief Counsel office retains the original and a copy of the closing agreement and a copy of the related private letter ruling, if any, and transmittal memorandum to the Operating Division. If applicable, associate the Special File with the legal file for the private letter ruling. Close the CLAG on TECHMIS using the applicable closing status code (see appendix for closing status codes). Use classification code E - Closing Agreement. Submit the legal file to DRU for processing and storage in accordance with CCDM 32.3.4.7.4.2, Signing and Disposition of Closing Agreements and Special Files.

Technical Advice Memorandum and Technical Expedited Advice Memorandum requests are forwarded from field offices to the Docket Records and User Fee Branch. After initial processing, the DRU transfers the request to TSS4510 for assignment and file creation.

The following should appear in chronological order of their development or consideration.

Closed TAM or TEAM files should be sent to the Docket Records and User Fee Branch for storage.

As described in CCDM 30.9.1.4(1)b, Other Files, TSS4510 opens assignments and creates files for Associate office review of motions and briefs to be filed in the Tax Court; defense, suit and settlement letters to be sent to the Department of Justice; and Coordinated Issue Papers, Appeals Settlement Guidelines, Forms, Publications, Internal Revenue Manual provisions and other documents from the Service.

Attorneys should ensure that these files contain:

Files should be sent to the Docket, Records and User Fee Branch when the case is closed.

When a Tax Court case is appealed, whether by the taxpayer or the government, responsibility for the case is transferred to the Associate office with primary subject matter jurisdiction.

The legal file is transmitted to the Department of Justice for its use in the appellate litigation. Before transmitting the file to Justice, attorneys should take care to retain copies of essential case documents in a duplicate legal file.

When the case is resolved on appeal, Justice will return the legal file to the Associate office. Unless the case is remanded to the Tax Court, the Associate office will close the case and send the file to the Disclosure and Litigation Support Branch for processing.

If the case is remanded, the legal file will be returned to the responsible Field counsel office.

When a District Court or Court of Federal Claims case is appealed, whether by the taxpayer or the government, responsibility for the case is transferred to the Associate office with primary subject matter jurisdiction.

The legal file is transferred from the Field counsel office to the Associate office for appeal monitoring.

When the case is resolved on appeal, Justice will return the legal file to the Associate office. Unless the case is remanded, the Associate office will close the case and send the file to the Disclosure and Litigation Support Branch for processing.

If the case is remanded, the legal file will be returned to the responsible Field counsel office.

The original and copies of all incoming correspondence, forms, transmittal memoranda, and/or reports must be stamped upon receipt to show the date and office in which received. For incoming Field Counsel assignments, the Area Counsel must also be immediately notified upon receipt of the new assignment. The number of exhibits and/or attachments received with the special agent’s report (SAR) or other incoming correspondence are to be checked to make certain that they correspond to number and identification as listed in the SAR or other incoming correspondence, and that all specified exhibits and attachments have been received.

CASEMIS databases (hereinafter CASE) should be searched to determine whether a case(s) related to the incoming target/assignment has been previously handled. All relevant CASE screen(s) should be printed and associated with the incoming assignment.

All new CT workload matters on which two or more hours will be spent are to be opened on CASE and a separate CASE number should be assigned to each proposed target in a Form 9131, Request for Grand Jury Investigation, or SAR. In the case of forfeitures, a separate CASE Number will be assigned to each Form 4008, Seized Property Report, received from CI.

Initially, the CT file will contain one copy of the incoming correspondence or documentation giving rise to the assignment. While the assignment is opened, copies of all case related correspondence/documentation, as well as each final work product (e.g., conference memorandum, supplemental investigation requests, criminal evaluation memorandum, forfeiture memorandum of law) will also be enclosed in the file. Additionally, all relevant CASE screen(s) should be printed and placed in the case jacket. This material should be fastened in the file folder in reverse chronological order.

No notations or marks are to be made on the originals of documents received from taxpayers or their representatives other than the necessary stamp to record the date and place of receipt. No notations, marks, or corrections are to be made on originals of the exhibits, or on papers or tax returns received from administrative officials in connection with criminal tax cases and matters.

The criminal tax file should always remain in the assigned CT office, except in the case of transfers. When the case is transferred, the complete file will be copied, unless directed otherwise by the Division Counsel/Associate Chief Counsel (Criminal Tax) and/or Area Counsel; the original documentation sent to the newly assigned office; and the copies retained by the transferring office. These same procedures will apply for transmittals to Division Counsel/Associate Chief Counsel (Criminal Tax) for review and evaluation.

With CI’s and CT’s increased use of electronic transmission of documentation, CT attorneys should look to the Division Counsel/Associate Chief Counsel (Criminal Tax) and Area Counsel for additional advice relative to the creation and retention of electronic files.

Security measures should be observed at all times to avoid jeopardizing a case through loss of files or unauthorized disclosure of the contents thereof.

Generally, CT case files and CI records in CT possession are classified as High Security items. The protection for these items involves storage in secure containers (i.e., locked file cabinets) or in areas protected by a secure room.

The security guidelines offered by IRM 10.2.15, Minimum Protection Standards (MPS), deal with the protection of sensitive tax data and grand jury information from purposeful or inadvertent disclosure, as well as protection of Service personnel and equipment. You should be aware of the guidelines the Service utilizes in this regard, and comply with them.

When additional security precautions are deemed advisable, the correspondence should be placed in double-sealed envelopes, clearly marked OPEN BY ADDRESSEE ONLY on the inner envelope. This requirement is inclusive of all copy distribution. To assure that all correspondence comes unopened to the Division Counsel/Associate Chief Counsel (Criminal Tax) the mailing envelope should be stamped NOT TO BE OPENED IN THE MAIL ROOM.

When transmitting by mail, original documents which may be used as evidence in trial (e.g., original returns, signed confessions, books and records, etc.), registered mail with confirmation of delivery requested or a comparable method of delivery should be used. A private service may be an appropriate method of delivery if the sender can be notified that all of the material sent reached its destination and that there is a method of tracing material which is lost en route. Should confirmation of notification of delivery not be received by the office transmitting such files or documents within a reasonable period of time, inquiry should be made to trace the material.

Except where noted below, cases opened after July 17, 2000 should be closed on CASE immediately upon completing the requested action. Exceptions are those cases in which Counsel is the referral authority, primarily summons enforcement cases and certain forfeiture cases.

Closing a criminal tax case encompasses closing the case on CASE, taking closing action relative to any file that was created and sending copies of specified documents to the Division Counsel/Associate Chief Counsel (Criminal Tax) and Area Counsel for review.

Closing a criminal tax case on CASE does not mean that the referral of the criminal case is "terminated" within the meaning of IRC § 7602(d)(2)(B).

CASE operators must be timely advised of the need to close a criminal tax case on CASE by being provided with a copy of any closing document. If there is no formal closing document, the CT attorney should take care to advise the CASE operator of the date the action on the case was completed so that the case can be closed as of that date.

The date the advice is rendered and/or the action document transmitted is the date the case will be put in 500 status on the CASE system. In the majority of cases, immediately thereafter, the case should be closed, i.e., put in 900 status. In the case of Title 26 and/or Title 26-related search warrants, the case should remain open and in 500 status until the inventory review has been completed, at which time the case should be closed and put in 900.

A copy of any closing document should be included in any file that was created for the case. A printout of the CASE screen showing the case in closed 900 Status should also be placed in the file. Such a file should be stamped or marked CLOSED.

Closed case files should be maintained separately from open case files and with appropriate security. Closed grand jury case files should be maintained separately from closed non-grand jury files.

All closed files should be retired to the federal record center in accordance with pertinent IRM record retention and shipping provisions. See Item No. 7 of IRM Exhibit 1.15.13-1, Records Control Schedule for the Chief Counsel. Grand jury files should be reviewed before any file is shipped to make sure that any grand jury material is properly handled.