The IRS has issued a revenue procedure describing its offshore voluntary
compliance initiative for individuals who have underreported their U.S.
income tax liability through the use of offshore payment cards or financial
arrangements.

Document Type: IRS Revenue Procedures
Tax Analysts Document Number: Doc 2003-1345 (15 original pages)
Tax Analysts Electronic Citation: 2003 TNT 10-7
Citations: Rev. Proc. 2003-11 (14 Jan 2003)

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OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE


=============== SUMMARY ===============

The IRS has issued a revenue procedure (Rev. Proc. 2003-11) describing its
offshore voluntary compliance initiative for individuals who have
underreported their U.S. income tax liability through the use of offshore
payment cards or financial arrangements.

The revenue procedure, which is effective January 14, 2003, applies to tax
years after December 31, 1998, and to tax years ending before that date, to
the extent provided in section 8 of the revenue procedure. (For a summary of
a related news release, see Doc 2003- 1343 (4 original pages); for a related
IRS chronology, see Doc 2003- 1346 (4 original pages). See also statements
from Treasury Assistant Secretary for Tax Policy Pamela F. Olson, Doc
2003-1351 (1 original page)   Senate Finance Committee Chair Charles E.
Grassley, R-Iowa, Doc 2003-1353 (1 original page and Sen. Max Baucus,
D-Mont., Doc 2003-1356 (1 original page).

The voluntary compliance initiative provides individuals who have used the
offshore financial devices with the opportunity to avoid certain penalties,
including civil fraud under section 6663, fraudulent failure to file under
section 6651(f), and information return civil penalties for failure to
comply with sections 6035, 6038, 6038A, 6038B, 6038C, 6039F, 6046, 6046A,
and 6048. However, the IRS may impose a delinquency penalty under section
6651, an accuracy- related penalty under section 6662, or both penalties
against individuals who participate.

The IRS will treat a request to participate in the program as a request to
make a voluntary disclosure according to the IRS voluntary disclosure
practice described in a December 11, 2002, news release. (For a summary of
IR-2002-135, see Tax Notes, Dec. 16, 2002, p. 1425; for the full text, see
Doc 2002-27163 (4 original pages) 2002 TNT 239-14, or H&D, Dec. 12, 2002, p.
2336.) The deadline for applying to participate in the initiative is April
15. Submit written requests via the U.S. Postal Service to National Offshore
Voluntary Compliance Initiative Coordinator at P.O. Box 480, Bensalem, PA
19020; via private delivery service at 11601 Roosevelt Blvd., Philadelphia,
PA 19154, Attn.: DP S6005; or via e-mail at VCI@irs.gov.

The revenue procedure outlines taxpayer eligibility requirements. It notes
that written requests to participate in the initiative must be received
before the IRS has: (1) begun a civil examination or criminal investigation
of the individual or has given notice of an examination or investigation;
(2) received alleged noncompliance information from a third party; (3) begun
a civil examination or criminal investigation that is directly related to
the individual's specific liability; or (4) acquired information directly
related to the specific liability from a criminal enforcement action. Also,
the individual must not have promoted, solicited, or facilitated the
participation of others in arrangements to avoid tax by using offshore
payment cards, financial arrangements, or other abusive transactions.
Further, individuals deriving income from illegal transactions, such as drug
trafficking, or using the offshore financial arrangements to facilitate
these transactions, are ineligible.

In his or her application, the individual must provide personal identifying
information, identify the tax-avoidance promoter, and hand over all
promotional and transactional materials and other correspondence regarding
the offshore financial arrangements, regardless of the time period involved.
Other information required to be submitted are tax returns for the years
involved.

The IRS will acknowledge receipt of the individual's written request within
30 days and will advise whether the individual is eligible. This preliminary
determination, however, does not preclude the IRS from later deciding that
the individual isn't eligible to participate in the initiative. The revenue
procedure describes additional requirements that an individual must satisfy
after the IRS has determined eligibility and explains that eligible
individuals must then sign a specific matters closing agreement waiving all
defenses to the assessment and collection of tax, penalties, and interest
under the initiative. Execution of the closing agreement by the commissioner
will be considered a final determination under section 7121 on an
individual's eligibility to participate.

The IRS indicated that it will not solicit or secure information on a
participating individual's tax liabilities for tax years before January 1,
1999. However, the Service reserves the right to examine those prior tax
years and to assess tax, penalties, and interest, if the limitations period
on assessment and collection for those years is open. The revenue procedure
includes a sample closing agreement and instructions.

=============== FULL TEXT ===============
Part III -- Administrative, Procedural, and Miscellaneous

SECTION 1. PURPOSE

.01 This revenue procedure describes the Internal Revenue Service's Offshore
Voluntary Compliance Initiative for taxpayers that have underreported their
United States income tax liability through financial arrangements that in
any manner rely on the use of offshore payment cards (including credit,
debit, or charge cards) issued by banks in foreign jurisdictions or offshore
financial arrangements (including arrangements with foreign banks, financial
institutions, corporations, partnerships, trusts, or other entities). This
revenue procedure applies to tax years ending after December 31, 1998, and
to tax years ending before that date to the extent provided in section 8 of
this revenue procedure.

.02 The Service has determined that some taxpayers have used offshore
payment cards or offshore financial arrangements to avoid United States
income taxes. The Offshore Voluntary Compliance Initiative described in this
revenue procedure affords taxpayers that have used these devices an
opportunity to avoid certain penalties that would otherwise apply.

SECTION 2. SCOPE OF THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE

.01 With respect to unreported income or false deductions associated with
the use of offshore payment cards or offshore financial arrangements, the
Service:

(1) will not impose the civil fraud penalty under section 6663, the
fraudulent failure to file penalty under section 6651(f), and information
return civil penalties for failure to comply with sections 6035, 6038,
6038A, 6038B, 6038C, 6039F, 6046, 6046A, and 6048; and

(2) will, in appropriate circumstances, impose the delinquency penalty under
section 6651, the accuracy-related penalty under section 6662, or both
penalties against taxpayers that participate in the Offshore Voluntary
Compliance Initiative.

.02 The Financial Crimes Enforcement Network (FinCEN) will not impose civil
penalties for failure to timely file a Report of Foreign Bank and Financial
Accounts (FBAR) against eligible taxpayers that participate in the Offshore
Voluntary Compliance Initiative. For more information, see FinCEN's website
at www.fincen.gov and look under Regulatory/BSA Guidance.

.03 The Service will treat the request to participate in the Offshore
Voluntary Compliance Initiative as a request to make a voluntary disclosure
pursuant to its Voluntary Disclosure Practice as described in IR-2002-135,
Dec. 11, 2002. See also Treasury Directive 15-41, dated December 1, 1992
(delegating to the Service the authority to investigate the criminal FBAR
penalty).

.04 Any contact or communication by the Service with a taxpayer regarding
the taxpayer's request to participate in the Offshore Voluntary Compliance
Initiative is not an examination of books and records for purposes of
section 7605(b) or Rev. Proc. 94-68, 1994-2 C.B. 803. The Service may audit
the returns of any taxpayer that participates in the Offshore Voluntary
Compliance Initiative, and may propose adjustments for items that are not
resolved under the Offshore Voluntary Compliance Initiative.

SECTION 3. APPLICATION PROCESS

.01 Taxpayers that want to participate in the Offshore Voluntary Compliance
Initiative must, on or before April 15, 2003, send a written request to
participate in the Offshore Voluntary Compliance Initiative to the National
Offshore Voluntary Compliance Initiative Coordinator. Taxpayers may send the
written request via the United States Postal Service to P.O. Box 480,
Bensalem, PA 19020; by private delivery service to 11601 Roosevelt Blvd.,
Philadelphia, PA 19154, Attn.: DP S6005; or by email to VCI@irs.gov. The
written request must:

(1) state that the taxpayer requests to participate in the Offshore
Voluntary Compliance Initiative and is a taxpayer eligible to participate in
the program, as described in section 4 of this revenue procedure;

(2) state the taxpayer's name, taxpayer identification number, current
address, and daytime telephone number;
(3) state the name and employer identification number of any entity
(including but not limited to corporations, partnerships, trusts, and
estates) that the taxpayer caused to use offshore payment cards or offshore
financial arrangements, or that was the source of funds that the taxpayer
caused to be transferred to a foreign jurisdiction;

(4) state the name and office location of any Service official whom the
taxpayer has previously contacted about making a voluntary disclosure; and

(5) include complete information regarding the taxpayer's introduction to
offshore payment cards and offshore financial arrangements, including the
following:

(a) the names, addresses, and telephone numbers of any parties who promoted
or solicited the taxpayer's use of offshore payment cards or offshore
financial arrangements;

(b) if known to the taxpayer, the names, addresses, and telephone numbers of
any parties who advised or assisted the promoters or solicitors in marketing
offshore payment cards or offshore financial arrangements; and

(c) all promotional materials, transactional materials, and other related
correspondence and documentation that the taxpayer at any time received
regarding offshore payment cards or offshore financial arrangements.
Taxpayers that send a written request to participate in the Offshore
Voluntary Compliance Initiative by email to VCI@irs.gov must send these
materials by mail or private delivery service (to the addresses provided in
subsection .01 above) within five days of the email. These taxpayers should
include with the materials a copy of the email sent to VCI@irs.gov.


SECTION 4. TAXPAYERS THAT ARE ELIGIBLE TO PARTICIPATE IN THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE

.01 A taxpayer that has used offshore payment cards or offshore financial
arrangements is eligible to participate in the Offshore Voluntary Compliance
Initiative if the taxpayer meets the following conditions:

(1) the taxpayer's written request to participate in the Offshore Voluntary
Compliance Initiative is received before:

(a) the Service has initiated a civil examination or criminal investigation
of the taxpayer, or has notified the taxpayer that it intends to commence
such an examination or investigation;

(b) the Service has received information from a third party (e.g.,
informant, other governmental agency, or the media) alerting the Service to
the specific taxpayer's noncompliance;

(c) the Service has initiated a civil examination or criminal investigation
that is directly related to the specific liability of the taxpayer; or

(d) the Service has acquired information directly related to the specific
liability of the taxpayer from a criminal enforcement action (e.g., search
warrant, grand jury subpoena);

(2) the taxpayer has not promoted, solicited, or, in any way, facilitated
the participation of others (other than members of the taxpayer's immediate
family, or of individuals from whom the taxpayer did not receive
compensation of more than a nominal amount) in arrangements to avoid
taxation by using offshore payment cards, offshore financial arrangements,
or any other abusive transaction, domestic or offshore, such as arrangements
based on arguments refuted by the Service in The Truth About Frivolous Tax
Arguments found at www.irs.gov/pub/irs-utl/friv_tax.pdf;

(3) during the years in which the taxpayer seeks to participate in the
Offshore Voluntary Compliance Initiative, the taxpayer has not derived
income from illegal sources, such as income from drug trafficking; and

(4) during the years in which the taxpayer seeks to participate in the
Offshore Voluntary Compliance Initiative, the taxpayer has not used the
offshore payment cards or offshore financial arrangements to support or, in
any way, facilitate illegal activities not related to taxes.

SECTION 5. ACKNOWLEDGMENT OF THE TAXPAYER'S REQUEST TO PARTICIPATE IN THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE

.01 The Service will acknowledge receipt of the taxpayer's written request
to participate in the Offshore Voluntary Compliance Initiative within 30
calendar days of receipt of the request. In its acknowledgment, the Service
will advise whether the taxpayer has been preliminarily determined to be
eligible to participate in the Offshore Voluntary Compliance Initiative or
has been determined to be ineligible to participate in the Offshore
Voluntary Compliance Initiative. A preliminary determination of eligibility
will not prevent the Service from later determining that the taxpayer is not
eligible to participate in the Offshore Voluntary Compliance Initiative due
to a failure to comply with the conditions of section 4.01(2), (3), or (4),
section 6, or section 7 of this revenue procedure.

SECTION 6. ADDITIONAL REQUIREMENTS THAT A TAXPAYER MUST SATISFY AFTER THE SERVICE PRELIMINARILY DETERMINES THAT THE TAXPAYER IS ELIGIBLE TO PARTICIPATE IN THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE

.01 Within 150 calendar days of the date of the letter informing the
taxpayer that the Service has preliminarily determined that the taxpayer is
eligible to participate in the Offshore Voluntary Compliance Initiative, the
taxpayer must send the following material to the National Offshore Voluntary
Compliance Initiative Coordinator, via the United States Postal Service to
P.O. Box 480, Bensalem, PA 19020, or by private delivery service to 11601
Roosevelt Blvd., Philadelphia, PA 19154, Attn.: DP S6005:

(1) copies of original and amended federal income tax returns for tax
periods ending after December 31, 1998, that the taxpayer previously filed;

(2) copies of any powers of attorney (Forms 2848) granted by the taxpayer
with respect to tax years in which the taxpayer requests to participate in
the Offshore Voluntary Compliance Initiative;

(3) descriptions of offshore payment cards and foreign and domestic accounts
of any kind (including the name and address of the bank or financial
institution, the account number, and the date the account was opened), and
descriptions of foreign assets in which the taxpayer has or had any
ownership or beneficial interest or that are or were controlled by the
taxpayer (i.e., the taxpayer has or had the practical ability to direct or
influence the financial transactions or affairs of an account or entity, or
the use or disposition of an asset, whether this ability was exercised
directly or indirectly through a nominee, agent, power of attorney, letter
of directions, letter of wishes, or any other device whatsoever) at any time
after December 31, 1998;

(4) descriptions of entities of any kind (including but not limited to
corporations, partnerships, trusts, and estates) and any nominees through
which the taxpayer exercised control over foreign funds, assets, or
investments at any time after December 31, 1998;

(5) descriptions of the source of any foreign funds, assets, or investments
owned or controlled by the taxpayer at any time after December 31, 1998;

(6) all promotional materials, transactional materials, and other related
correspondence and documentation regarding offshore payment cards or
offshore financial arrangements received subsequent to the date the taxpayer
submits the request to participate in the Offshore Voluntary Compliance
Initiative;

(7) complete and accurate amended or delinquent original federal income tax
returns of the taxpayer for all tax years ending after December 31, 1998,
which are supported by an explanation of previously unreported income or
incorrectly claimed deductions or credits (whether or not related to
offshore payment cards or offshore financial arrangements);

(8) complete and accurate amended or delinquent original information returns
required by sections 6035, 6038, 6038A, 6038B, 6038C, 6039F, 6046, 6046A,
and 6048 for which the taxpayer requests relief from penalties; and

(9) complete and accurate FBARs for tax years ending after December 31,
1998. (FBAR forms are available by contacting FinCEN at 800-949-2732 and on
FinCEN's website, www.fincen.gov.)

.02 Upon the Service's request, and within the period of time allowed by the
Service in its request, the taxpayer must provide documentation of the
matters described in section 6.01 paragraphs (3) through (5) of this revenue
procedure, and information regarding all transactions conducted through the
foreign accounts and entities.

.03 Upon the Service's request, and within the period of time allowed by the
Service in its request, the taxpayer must provide executed consents or
special consents to extend the time to assess tax for years that the
taxpayer requests to participate in the Offshore Voluntary Compliance
Initiative.

.04 At the time the taxpayer files the required amended or delinquent
original returns, the taxpayer must fully pay the tax liabilities, including
applicable penalties under sections 6651 and 6662, and interest, or make
other financial arrangements acceptable to the Service for all years covered
by the Offshore Voluntary Compliance Initiative. In addition, the taxpayer
must fully pay all other unpaid, previously assessed liabilities, or make
other financial arrangements acceptable to the Service. For purposes of this
revenue procedure, other financial arrangements acceptable to the Service
shall include the completion and submission of complete financial statements
to the National Offshore Voluntary Compliance Initiative Coordinator at the
time amended or delinquent returns are filed in compliance with section 6.01
of this revenue procedure. A complete financial statement shall include all
assets, domestic and foreign, in which the taxpayer has an ownership or
beneficial interest or over which the taxpayer has control, whether directly
or indirectly, through a nominee, agent, power of attorney, letter of
directions, letter of wishes, or any other device.

SECTION 7. FINAL DETERMINATION THAT A TAXPAYER IS ELIGIBLE TO PARTICIPATE IN THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE

.01 After an eligible taxpayer meets the requirements of sections 3 and 6 of
this revenue procedure, the taxpayer must execute a specific matters closing
agreement in the form appended to this revenue procedure as Exhibit 1. In
the closing agreement, the taxpayer must waive all defenses to the
assessment and collection of tax, penalties, and interest under the Offshore
Voluntary Compliance Initiative, including any defenses based on the
expiration of the period of limitations on assessment or collection. The
taxpayer must also agree that the failure to disclose information that would
make the taxpayer ineligible to participate in the Offshore Voluntary
Compliance Initiative, or the failure to fully and accurately provide the
information required by sections 3 and 6 of this revenue procedure,
constitutes a misrepresentation of a material fact under section 7121.

.02 Execution of the closing agreement by the Commissioner constitutes a
final determination under section 7121 that the taxpayer is eligible to
participate in the Offshore Voluntary Compliance Initiative.

SECTION 8. TREATMENT OF TAX YEARS ENDING PRIOR TO JANUARY 1, 1999

.01 For cases resolved under the Offshore Voluntary Compliance Initiative,
the Service does not intend to solicit or secure information concerning an
eligible participating taxpayer's federal income tax liabilities for tax
years ending prior to January 1, 1999. Eligible participating taxpayers,
however, must provide information about all aspects of the taxpayer's
involvement with offshore payment cards or offshore financial arrangements,
regardless of the year in which such activities began.

.02 If it comes to the Service's attention that substantial tax avoidance
occurred in tax years ending prior to January 1, 1999, the Service reserves
the right to examine such prior tax years and to assess tax, penalties, and
interest, if the period of limitations on assessment and collection for
those years is open. If any eligible participating taxpayer files complete
and accurate amended or delinquent original returns for tax years ending
prior to January 1, 1999, which are supported by an explanation of
previously unreported income or incorrectly claimed deductions or credits
(whether or not related to offshore payment cards or offshore financial
arrangements), the Service will resolve the taxpayer's liability for those
years for tax, penalties, and interest on the same basis that the Service
will resolve liabilities for tax years ending after December 31, 1998, under
the Offshore Voluntary Compliance Initiative.

SECTION 9. EFFECTIVE DATE

.01 This revenue procedure is effective on January 14, 2003.

SECTION 10. PAPERWORK REDUCTION ACT

.01 The collection of information contained in this revenue procedure has
been reviewed and approved by the Office of Management and Budget in
accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control
number 1545-1822. 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 OMB control number.

.02 The collection of information in this revenue procedure is in Section 3

(APPLICATION PROCESS), Section 6 (ADDITIONAL REQUIREMENTS THAT A TAXPAYER MUST SATISFY AFTER THE SERVICE PRELIMINARILY DETERMINES THAT THE TAXPAYER IS ELIGIBLE TO PARTICIPATE IN THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE),

Section 7 (FINAL DETERMINATION THAT A TAXPAYER IS ELIGIBLE TO PARTICIPATE IN THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE), and Section 8 (TREATMENT OF TAX YEARS ENDING PRIOR TO JANUARY 1, 1999).

This information will be used to
determine whether a taxpayer is eligible for the Offshore Voluntary
Compliance Initiative and to apply the terms of the initiative. This
information will also further the Service's understanding of how offshore
payment cards and offshore financial arrangements have been promoted and
solicited. Collection of the information described in this revenue procedure
is required to obtain the benefits of the Offshore Voluntary Compliance
Initiative. The likely respondents are individuals, corporations,
partnerships, trusts, and other entities.

.03 The estimated total annual reporting burden is uncertain but estimated
to be at least 100,000 hours. The estimated annual burden per respondent
varies from 25 hours to 75 hours, depending on individual circumstances,
with an estimated average of 50 hours. The number of respondents is
uncertain but estimated to be in the thousands. The estimated frequency of
responses is at least one per respondent.

.04 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 26 U.S.C. § 6103.

SECTION 11. CONTACT INFORMATION

.01 The principal author of this revenue procedure is Stuart Spielman of the
Office of the Associate Chief Counsel (Procedure and Administration). For
further information regarding this revenue procedure, please contact the
Office of the National Offshore Voluntary Compliance Initiative Coordinator
at 215-516-3537 (not a toll-free number) or visit www.irs.gov.

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EXHIBIT 1

Department of the Treasury -- Internal Revenue Service

Closing Agreement On Final Determination
Covering Specific Matters

Under section 7121 of the Internal Revenue Code:

________________________________________________________________
(Taxpayer's name)

____________________________________________________________________
(Taxpayer's address and identifying number)

WHEREAS, Taxpayer has underreported federal income taxes for [specify tax
years] through financial arrangements that in some manner rely on the use of
offshore payment cards (including credit, debit, or charge cards) issued by
banks in foreign jurisdictions or offshore financial arrangements (including
arrangements with foreign banks, financial institutions, corporations,
partnerships, trusts, or other entities);

WHEREAS, Taxpayer has requested to participate in the Offshore Voluntary
Compliance Initiative, which is described in Revenue Procedure 2003-11; and

WHEREAS, Taxpayer has agreed to all the terms and conditions of the Offshore
Voluntary Compliance Initiative.

NOW IT IS HEREBY DETERMINED AND AGREED FOR FEDERAL TAX PURPOSES THAT:

1. For [Year 1], Taxpayer used offshore payment cards or offshore financial
arrangements to avoid reporting income in the amount of [specify amount] and
to claim false deductions in the amount of [specify amount]. [ Insert only
if applicable: For Year 1, Taxpayer had additional unreported income in the
amount of [specify amount] and false deductions in the amount of [specify
amount.]] For [Year 2], Taxpayer used offshore payment cards or offshore
financial arrangements to avoid reporting income in the amount of [specify
amount] and to claim false deductions in the amount of [specify amount]. [
Insert only if applicable: For Year 2, Taxpayer had additional unreported
income in the amount of [specify amount] and false deductions in the amount
of [specify amount]] [Continue in this manner for all tax years.]

2. For [Year 1], penalties under sections [indicate sections] of the
Internal Revenue Code apply to underpayments attributable to the unreported
income and false deductions. For [Year 2], penalties under sections
[indicate sections] apply to underpayments attributable to the unreported
income and false deductions. [Continue in this manner for all tax years.]

3. Interest is due as provided by law on Taxpayer's underpayments of tax and
penalties.

4. Taxpayer waives all defenses to the assessment and collection of tax,
penalties, and interest described in the preceding paragraphs, including any
defense based on the expiration of the period of limitations on assessment
or collection.

5. This closing agreement does not prevent the Internal Revenue Service from
auditing Taxpayer for [specify tax years] and proposing adjustments
unrelated to offshore payment cards or to offshore financial arrangements.
This closing agreement also does not prevent the Service from proposing
adjustments related to offshore payment cards or to offshore financial
arrangements if, subsequent to the date that this closing agreement is
executed, the Service determines that Taxpayer, contrary to the provisions
of Revenue Procedure 2003- 11, failed to fully and accurately provide the
information and materials required by sections 3 and 6 of the revenue
procedure. Any examination or determination under this paragraph 5 does not
constitute a second examination for purposes of section 7605(b) of the Code
or Rev. Proc. 94-68, 1994-2 C.B. 803.

6. Failure to disclose information that would make Taxpayer ineligible to
participate in the Offshore Voluntary Compliance Initiative or failure to
fully and accurately provide the information or material required by
sections 3 and 6 of Revenue Procedure 2003-11 constitutes a
misrepresentation of a material fact under section 7121 of the Code

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Instructions

This agreement must be signed and filed in triplicate. (All copies must have
original signatures.) The original and copies of the agreement must be
identical. The name of the taxpayer must be stated accurately. The agreement
may relate to one or more years.

If an attorney or agent signs the agreement for the taxpayer, the power of
attorney (or a copy) authorizing that person to sign must be attached to the
agreement. If the agreement is made for a year when a joint income tax
return was filed by a husband and wife, it should be signed by or for both
spouses. One spouse may sign as agent for the other if the document (or a
copy) specifically authorizing that spouse to sign is attached to the
agreement.

If the fiduciary signs the agreement for a decedent or an estate, an
attested copy of the letters testamentary or the court order authorizing the
fiduciary to sign, and a certificate of recent date that the authority
remains in full force and effect must be attached to the agreement. If a
trustee signs, a certified copy of the trust instrument or a certified copy
of extracts from that instrument must be attached showing:

(1) the date of the instrument;
(2) that it is or is not of record in any court;
(3) the names of the beneficiaries;
(4) the appointment of the trustee, the authority granted, and other
information necessary to show that the authority extends to Federal tax
matters; and

(5) that the trust has not been terminated, and that the trustee appointed
is still acting. If a fiduciary is a party, Form 56, Notice Concerning
Fiduciary Relationship, is ordinarily required.

If the taxpayer is a corporation, the agreement must be dated and signed
with the name of the corporation, the signature and title of an authorized
officer or officers, or the signature of an authorized attorney or agent. It
is not necessary that a copy of an enabling corporate resolution be
attached.

Use additional pages if necessary, and identify them as part of this
agreement.

Please see Revenue Procedure 68-16, C.B. 1968-1, page 770, for a detailed
description of practices and procedures applicable to most closing
agreements.

This agreement is final and conclusive except:
(1) the matter it relates to may be reopened in the event of fraud,
malfeasance, or misrepresentation of material fact;

(2) it is subject to the Internal Revenue Code sections that expressly
provide that effect be given to their provisions (including any stated
exception for Code section 7122) notwithstanding any other law or rule of
law; and

(3) if it relates to a tax period ending after the date of this agreement,
it is subject to any law, enacted after the agreement date, that applies to
that tax period.

By signing, the above parties certify that they have read and agreed to the
terms of this document.
Your signature ____________________________________________________
Date Signed __________________

Spouse's signature (if a joint return was filed)___________________
Date Signed __________________

Taxpayer's representative _________________________________________
Date Signed __________________

Taxpayer (other than individual)
___________________________________________________________________

By ___________________________________________________________
Date Signed______________

Title ________________________________________________________


Commissioner of Internal Revenue

By ___________________________________________________________
Date Signed __________________

Title _______________________________________________________