Tax News

CCH (cch.taxgroup.com) reports:

The IRS was required to disclose e-mails containing legal advice, which it had withheld under its two-hour rule, sent by lawyers in the IRS Office of the Chief Counsel (OCC) to IRS field personnel because they fell within the statutory definition of "chief counsel advice" (CCA) and, therefore, must be made available for inspection under Code Sec. 6110.
The IRS's two-hour rule, which effectively shielded advice rendered in less than two hours from disclosure, was contrary to the statutory directive that a written determination, including, without exception, a CCA, must be open to public inspection. The statute did not distinguish between advice rendered in less than two hours and advice that takes longer to complete, nor did it require any particular form or formality.
The documents sought fell within the statutory description because they were written interpretations of revenue provisions prepared by lawyers in the OCC and sent to field personnel. The advice did not have to be formally issued as an official position to fall under the statutory definition of a CCA, which encompassed not only a formal position or policy concerning a revenue position but also any legal interpretation of a revenue position. Also, the statutory phrase that the advice be prepared by any national office "component" of the OCC included advice prepared by an individual OCC lawyer, whether she be considered a "component" of the OCC or simply a member of an institutional component who prepares the opinion on its behalf.
Affirming a DC D.C. decision, 2006-1 USTC ¶50,223.
Tax Analysts, CA-D.C., 2007-2 USTC ¶50,553
Other References:
Code Sec. 6110
CCH Reference - 2007FED ¶36,988.20
Tax Research Consultant
CCH Reference - TRC IRS: 9,052.05
CCH Reference - TRC IRS: 9,052.15
CCH Reference - TRC IRS: 12,382