IRS makes expedited PLR program permanent

The IRS issued guidance on July 26 (Rev. Proc. 2023-26) creating a permanent fast-track process for certain private letter rulings. The new version of the program replaces an 18-month pilot process that was created last January under Rev. Proc. 2022-10, which expired on July 14, 2023.

The expedited process allows taxpayers to request fast-track processing for a ruling request solely or primarily under the jurisdiction of IRS Associate Chief Counsel (Corporate). The IRS made two notable changes to the program in the permanent version. Taxpayers are still required to provide the reasons for the request, the IRS clarified that taxpayers are not required to demonstrate a business need unless the taxpayer is requesting a ruling in less than 12 weeks. The IRS also will not grant fast-track processing if the letter ruling includes a closing agreement under the Associate Chief Counsel.

Taxpayers requesting fast-track processing must meet specific requirements, including:

• Requesting a pre-submission conference to address the substantive issues and providing specific information before the conference, including a concise description of the transaction and the issues
• Stating the reason for the request of fast track (without the requirement to demonstrate a business need)
• Agreeing to provide any additional information within seven business days of when it is requested.
• Providing a draft letter ruling, including a legend of defined terms, relevant facts, representations, rulings and administrative matters 

The IRS also strongly recommends submitting the request via encrypted e-mail. The IRS will determine whether to accept a fast-track processing request based on a variety of factors, including:

• The complexity of the of the proposed transaction and the issues presented
• Whether the ruling request fully, clearly and concisely describes and analyzes the relevant facts and issues
• The reasons for the fast-track request
• Resource constraints at the IRS

If a ruling request includes a request for a ruling on an issue under the jurisdiction of another office of the IRS Associate Chief office besides Corporate, fast-track processing will be granted only if the other associate office agrees to process the request in accordance with the expedited process.

The IRS will aim to complete processing of any ruling request accepted into the program within 12 weeks, unless a shorter or longer period is requested and granted.

Fast-track processing is not available for requests for extension of time to make elections under Treas. Reg. Sec. 301-9100. The fast-track ruling program under Rev. Proc. 2023-26 may apply to letter ruling requests postmarked or received by the IRS after July 26, 2023.