,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ajbeh  ,,9 ,,! ,,h\se ,,(         
,,repres5tatives  ,septemb] #c1         
#bjbf,mr4 ,doggett 7= himself & ,ms4    
,sewell7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to cl>ify due process    
rights 9 ! case ( an action to t]m9ate  
tax exempt /atus4  #a4 ,%ort title  ,?is
 ,act may be cit$ z ! ,protect+ !       
,rights ( ,organizations ,fairly ,act ( 
#bjbf or ! ,,pro( ,act4  #b4 ,process = 
exam9ation ( c]ta9 tax exempt entities  
7a7 ,9 g5]al ,sub*apt] ,a ( *apt] #gh is
 am5d$ by ins]t+ aft] section #gfaa !   
foll[+ new section3  #gfaa;,a4 ,process 
= exam9ation ( c]ta9 tax exempt entities
  7a7 ,9 g5]al  7#a7 ,exam9ation ,9 !   
case ( an organization exempt f tax "u  
section #eja7;a7 7o!r ?an a *ur*7 !     
,secret>y may beg9 a tax exempt         
exam9ation only if ! notice requirem5ts 
( subsection 7b7 are met4  7#b7         
,revocation ( /atus ,! ,secret>y may    

make an adv]se det]m9ation ) respect to 
an organization's /atus z exempt f tax  
"u section #eja7;a7 only if-- 7,a7 an   
exam9ation begun pursuant to p>agraph   
7#a71 or 9 ! case ( a *ur*1 section     
#gfaa7;b71 suffici5tly supports su*     
det]m9ation1 &  7,b7 ! due process      
requirem5ts ( subsection 7c7 are met4   
7b7 ,notice requirem5ts  7#a7 ,9 g5]al  
,! notice requirem5ts ( ?is subsection  
%all be treat$ z met ) respect to an    
exam9ation if ! ,secret>y provides      
writt5 notice to ! organization ( !     
exam9ation t includes 9 cle> & suffici5t
 detail ! foll[+3  7,a7 ,a /atem5t t !  
organization has be5 select$ =          
exam9ation ( :e!r ! organization is     
exempt f tax "u section #eja7;a74  7,b7 
,a /atem5t t id5tifies ! g5]al subject  
matt] & issue areas t are ! basis = !   
exam9ation & ! provisions ( ?is title1 &
 any relat$ ,treasury ,regulations1 :i* 
au?orize su* exam9ation or :i* may be   
o!rwise involv$ 9 su* exam9ation4  7,c7 
,id5tification ( ! tax p]iods subject to

 exam9ation4  7,d7 ,! "n & contact      
in=mation ( ! individual assign$ to !   
exam9ation & ! individual's sup]visor4  
7,e7 ,an explanation ( ! organization's 
rights dur+ ! exam9ation1 includ+ ! "r  
to repres5tation by legal c\nsel or an  
au?oriz$ repres5tative & ! "r to reque/ 
a sup]visory conf]5ce pursuant to       
subsection 7c77#d74  7,f7 ,an (f] to    
consid] a response or h an op5+ conf]5ce
 betwe5 ! organization & ! ,secret>y to 
seek to resolve conc]ns relat+ to su*   
exam9ation4  7#b7 ,exp&$ scope (        
exam9ation ,9 ! case ( any issue n      
id5tifi$ 9 ! notice prescrib$ by        
p>agraph 7#a71 ! notice requirem5ts (   
?is subsection %all n be treat$ z met ) 
respect to any exam9ation ( su* issue   
unless ! ,secret>y provides a subsequ5t 
writt5 notice to ! organization t meets 
! requirem5ts ( p>agraph 7#a7 ) respect 
to ! issue4  7c7 ,due process           
requirem5ts  7#a7 ,9 g5]al ,! due       
process requirem5ts ( ?is subsection    
%all be treat$ z met ) respect to an    

exam9ation if ! ,secret>y--  7,a7       
g5]ates & ma9ta9s a record ( !          
exam9ation t meets ! requirem5ts (      
p>agraph 7#b7 & t con/itutes prima facie
 evid5ce = ! conclusion rea*$1  7,b7    
makes reque/s = in=mation & docum5tation
 only z provid$ 9 p>agraph 7#c71  7,c7  
af=ds ! organization ! opportunity =    
conf]5ces z provid$ 9 p>agraphs 7#d7 &  
7#e71 &  7,d7 notifies ! organization ( 
any adv]se decision made1 & any rights  
to prote/ or appeal su* decision1 z     
provid$ 9 p>agraph 7#f74  7#b7 ,record  
7,a7 ,9 g5]al ,! requirem5ts ( ?is      
p>agraph %all be treat$ z met ) respect 
to a record ( ! exam9ation if su* record
 includes-- 7i7 docum5tation (--  7,i7 !
 basis = ! exam9ation1  7,,ii7 ea*      
in=mation or docum5t reque/ made to !   
organization1  7,,iii7 ! organization's 
responses to any notices1 inquiries1    
reque/s1 or o!r communications1  7,,iv7 
! exam9]'s analysis ( ! applicable facts
 & law1 &  7,v7 ! basis = any propos$   
det]m9ation1 &  7ii7 a date-specific    

case *ronology reflect+ all significant 
contacts1 decisions1 & actions tak5 dur+
 ! exam9ation1  7,b7 ,requir$ disclosure
  7i7 ,9 g5]al ,aft] completion ( !     
record ( ! exam9ation1 or aft]          
submission ( a prote/ or appeal by !    
organization ( ! propos$ adv]se         
det]m9ation "u p>agraph 7#f71 :i*ev] is 
e>li]1 on writt5 reque/ f !             
organization1 ! ,secret>y %all n lat]   
?an #cj days aft] su* reque/ disclose to
 ! organization ! cont5ts ( ! record    
describ$ 9 subp>agraph 7,a74  7ii7      
,exception = privileg$ communications   
,clause 7i7 %all n apply to any         
privileg$ communications1 except t if   
any cont5ts ( ! record describ$ 9       
subp>agraph 7,a7 are o!rwise conta9$    
solely )9 a privileg$ communication1 !  
disclosure "u clause 7i7 %all include a 
summ>y ( su* cont5ts 9 suffici5t detail 
to apprise ! organization ( su* cont5ts 
z s describ$4  7#c7 ,in=mation docum5t  
reque/s  7,a7 ,9 g5]al ,all reque/s by !
 ,secret>y seek+ in=mation or           

docum5tation f ! organization %all      
include ! foll[+3 7i7 ,a description ( !
 docum5ts or o!r in=mation s\ght        
suffici5t 9 detail to all[ !            
organization to id5tify & produce       
responsive mat]ials4  7ii7 ,an          
explanation ( ! connection betwe5 !     
reque/ & ! subject matt] ( ! exam9ation4
  7,b7 ,p]iod = response ,! deadl9e =   
response by an organization to any su*  
reque/ %all n be less ?an #cj days f !  
date ( su* reque/4  7,c7 ,defici5t      
reque/s ,failure by ! organization to   
respond to an exam9ation reque/ t does n
 meet ! requirem5ts ( ?is p>agraph %all 
n be treat$ z a basis = an adv]se       
det]m9ation ) respect to an             
organization's /atus z an organization  
exempt f tax "u section #eja7;a74  7#d7 
,"r to sup]visory conf]5ce dur+         
exam9ation ,9 ! case ( a reque/ by !    
organization dur+ ! exam9ation = a      
conf]5ce ) ! exam9+ ag5t's sup]visor    
reg>d+ any issue 9 dispute betwe5 !     
organization & ! exam9+ ag5t1 !         

,secret>y %all--  7,a7 n lat] ?an #aj   
bus9ess days aft] su* reque/ is made1   
ackn[l$ge su* reque/1  7,b7 n lat] ?an  
#cj days aft] su* reque/ is made1 or su*
 long] p]iod z may be agre$ ^u1 hold su*
 reque/$ conf]5ce1 at :i* ! organization
 may pres5t its position on any issue 9 
dispute1  7,c7 n lat] ?an #ae bus9ess   
days aft] su* conf]5ce1 provide a writt5
 summ>y ( ! conf]5ce t includes a       
description ( any decisions made )      
respect to an issue 9 dispute4  7#e7    
,clos+ conf]5ce ,9 ! case ( an          
exam9ation f :i* an adv]se decision is  
made ) respect to ! organization's tax  
exempt /atus "u section #eja7;a71 prior 
to issu+ a propos$ adv]se det]m9ation   
lett] ) respect to su* decision1 !      
,secret>y %all--  7,a7 make available a 
conf]5ce1 at :i* !re %all be provid$ )  
respect to ! adv]se decision-- 7i7 a    
summ>y ( ! exam9ation f9d+s1  7ii7 !    
legal & factual basis = ! adv]se        
decision1 includ+ ! specific legal      
au?ority & conclusions f ! record ( !   

exam9ation t support ! decision1 &      
7iii7 an explanation ( ! organization's 
appeal rights & applicable deadl9es1 &  
7,b7 provide a writt5 summ>y ( su*      
conf]5ce n lat] ?an #ae bus9ess days    
!reaft]4  7#f7 ,propos$ adv]se          
det]m9ation lett]  7,a7 ,9 g5]al ,!     
,secret>y %all n issue a f9al adv]se    
det]m9ation lett] 9 ! case ( an adv]se  
decision ) respect to ! organization's  
tax exempt /atus "u section #eja7;a71   
unless1 & 9 no case e>li] ?an #cj days  
aft]1 ! ,secret>y provides a propos$    
adv]se det]m9ation lett] to !           
organization4  7,b7 ,cont5ts ,su*       
propos$ adv]se det]m9ation lett] %all   
include ! foll[+3 7i7 ,a prom95t /atem5t
 ( h[ ! ,secret>y is propos+ to revoke1 
modify1 or adv]sely affect !            
organization's tax-exempt /atus "u      
section #eja7;a74  7ii7 ,a summ>y ( !   
exam9ation f9d+s & ! legal & factual    
basis = ! det]m9ation1 includ+ !        
specific legal au?ority & conclusions f 
! record ( ! exam9ation t support !     

det]m9ation4  7iii7 ,a /atem5t ( !      
propos$ effective date ( ! det]m9ation4 
7iv7 ,an explanation ( ! organization's 
prote/ & appeal rights1 includ+ submitt+
 to ! ,secret>y a prote/ ( ! propos$    
adv]se det]m9ation lett]1 adm9i/rative  
appeal & reque/+ a conf]5ce ) ! ,int]nal
 ,rev5ue ,s]vice ,indep5d5t ,(fice (    
,appeals = consid]ation ( ! propos$     
adv]se det]m9ation1 & initiat+ a        
judicial proce$+ "u section #gdbh4  7v7 
,an explanation ( ! applicable deadl9es 
= su* prote/s & appeals1 & ! legal      
consequ5ces ( ex]cis+ 7or fail+ to      
ex]cise7 su* rights4  7vi7 ,a /atem5t ( 
! date on :i* ! ,secret>y may issue a   
f9al adv]se det]m9ation lett] 9 ! abs5ce
 ( a prote/ or appeal4  7,c7            
,cross-ref]5ce ,= rights ) respect      
appeal & reque/$ conf]5ce ) ! ,int]nal  
,rev5ue ,s]vice ,indep5d5t ,(fice (     
,appeals1 see section #ghjc7;e77#h74  4 
7b7 ,coord9ation ) curr5t re/rictions on
 *ur* tax exam9ations  7#a7 ,cont5ts (  
notice ( exam9ation ,section            

#gfaa7;b77#c77;,a7 ( su* ,code is am5d$ 
by r$esignat+ clauses 7iii7 & 7iv7 z    
clauses 7iv7 & 7v71 respectively1 & by  
ins]t+ aft] clause 7ii7 ! foll[+ new    
clause3  7iii7 an explanation ( ! *ur*'s
 rights dur+ ! exam9ation1 includ+ ! "r 
to repres5tation by legal c\nsel or an  
au?oriz$ repres5tative & ! "r to reque/ 
a sup]visory conf]5ce pursuant to       
section #gfaa;,a7c77#d71  4  7#b7       
,consid]ation ( response to notice (    
exam9ation ,section                     
#gbaa7;b77#c77;,a77iv7 ( su* ,code1 z   
r$esignat$ by p>agraph 7#a71 is am5d$ by
 ins]t+ an (f] to consid] a response &  
be=e an (f] to h a conf]5ce4  7#c7      
,expansion ( scope ,section             
#gfaa7;b77#d7 ( su* ,code is am5d$ by   
ins]t+ be=e ! p]iod at ! end ! foll[+3 &
 ! ,secret>y provides ! *ur* a          
supplem5t>y writt5 notice t includes a  
description ( any su* *ur* records &    
activities :i* ! ,secret>y seeks to     
exam9e4  7c7 ,indep5d5t ,(fice (        
,appeals ,section #ghjc7;e7 ( su* ,code 

is am5d$ by add+ at ! end ! foll[+ new  
p>agraph3  7#h7 ,appeal ( propos$ adv]se
 det]m9ation lett] ) respect to         
organization's tax exempt /atus  7,a7 ,9
 g5]al ,9 ! case ( a propos$ adv]se     
det]m9ation lett] ) respect to an       
organization's tax exempt /atus "u      
section #eja7;a71 ! resolution process  
describ$ 9 p>agraph 7#c7 %all be        
available to ! organization1 & a        
conf]5ce %all be provid$1 ) respect to  
su* propos$ adv]se det]m9ation if       
reque/$ by ! organization n lat] ?an #cj
 days aft] ! date ( ! propos$ adv]se    
det]m9ation lett]4  7,b7 ,deadl9es ,9 ! 
case ( su* a timely reque/ by !         
organization1 ! ,int]nal ,rev5ue ,s]vice
 ,indep5d5t ,(fice ( ,appeals %all-- 7i7
 n lat] ?an #aj bus9ess days aft]       
receipt ( su* reque/1 ackn[l$ge su*     
reque/1 &  7ii7 9 ! case ( a reque/ = a 
conf]5ce1 n lat] ?an #ij days aft]      
receipt ( su* reque/1 s*$ule & hold su* 
conf]5ce4  4  7d7 ,cl]ical am5dm5t ,!   
table ( sections = sub*apt] ,a ( *apt]  

#gh ( su* ,code is am5d$ by ins]t+ aft] 
! item relat+ to section #gfaa ! foll[+ 
new item3  ,sec4 #gfaa;,a4 ,process =   
exam9ation ( c]ta9 tax exempt entities4 
4  7e7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to exam9ations
 begun aft] ,decemb] #ca1 #bjbd4