2RULE 210. GENERAL
- (a) Applicability:. The Rules of this Title XXI set forth
the special provisions which apply to declaratory judgment
actions relating to the qualification of certain retirement
plans, the value of certain gifts, the status of certain governmental
obligations, the eligibility of an estate with respect to
installment payments under Code section 6166, and the initial
or continuing qualification of certain exempt organizations
or the initial or continuing classification of certain private
foundations. For the Rules that apply to declaratory
judgment actions relating to treatment of items other than
partnership items with respect to an oversheltered return,
see the Rules contained in Title XXX. Except as otherwise
provided in this Title, the other Rules of Practice and Procedure
of the Court, to the extent pertinent, are applicable to
such actions for declaratory judgment.
- (b) Definitions: As used in the Rules in this Title--
- (1) "Retirement plan" has the meaning provided by Code
section 7476(c).
- (2) A "gift" is any transfer of property that was shown
on the return of tax imposed by Chapter 12 or disclosed on
such return or in any statement attached to such return.
- (3) "Governmental obligation" means an obligation the status
of which under Code Section 103(a) is in issue.
- (4) An "estate" is any estate whose initial or continuing
eligibility with respect to the deferral and installment payment
election under Code section 6166 is in issue.
- (5) An "exempt organization" is an organization described in
Code section 501(c)(3) which is exempt from tax under Code section
501(a) or is an organization described in Code section
170(c)(2).
- (6) A "private foundation" is an organization described in
Code section 509(a).
- (7) A "private operating foundation" is an organization
described in Code section 4942(j)(3).
- (8) An "organization" is any organization whose
qualification as an exempt organization, or whose classification as
a private foundation or a private operating foundation, is in
issue.
- (9) A "determination" means--
- (A) A determination with respect to the initial or
continuing qualification of a retirement plan;
- (B) A determination of the value of any gift;
- (C) A determination as to whether prospective governmental
obligations are described in Code section 103(a);
- (D) A determination as to whether, with respect to an
estate, an election may be made under Code section 6166
or whether the extension of time for payment of estate
tax provided in Code section 6166 has ceased to apply; or
- (E) A determination with respect to the initial or
continuing qualification of an organization as an exempt
organization, or with respect to the initial or continuing
classification of an organization as a private foundation or a private operating foundation.
- (10) A "revocation" is a determination that a retirement plan
is no longer qualified, or that an organization, previously
qualified or classified as an exempt organization or as a private
foundation or private operating foundation, is no longer qualified
or classified as such an organization.
- (11) "Action for declaratory judgment" is either a retirement
plan action, a gift valuation action, a governmental obligation action, an estate tax installment payment action, or an exempt
organization action, as follows:
- (A) A "retirement plan action" means an action for
declaratory judgment provided for in Code section 7476 with respect
to the initial or continuing qualification of a retirement plan.
- (B) A "gift valuation action" means an action for declaratory
judgment provided for in Code section 7477 relating
to the valuation of a gift.
- (C) A "governmental obligation action" means an action for
declaratory judgment provided for in Code section 7478 with respect
to the status of certain prospective governmental obligations.
- (D) An "estate tax installment payment action" means an action for declaratory judgment provided for in Code section 7479 relating to the eligibility of an estate
with respect to installment payments under Code section 6166.
- (E) An "exempt organization action" means a declaratory
judgment action provided for in Code section 7428 with respect to
the initial or continuing qualification of an organization as an
exempt organization, or with respect to the initial or continuing
classification of an organization as a private foundation or a
private operating foundation.
- (12) "Administrative record" includes the request for
determination, all documents submitted to the Internal Revenue
Service by the applicant in respect of the request for
determination, all protests and related papers submitted to the
Internal Revenue Service, all written correspondence between the
Internal Revenue Service and the applicant in respect of the
request for determination of such protests, all pertinent returns
filed with the Internal Revenue Service, and the notice of
determination by the Commissioner.
- (13) "Party" includes a petitioner and the respondent
Commissioner of Internal Revenue. In a retirement plan action, an
intervenor is also a party. In a gift valuation action,
only the donor may be a petitioner. In a governmental obligation action, only the prospective issuer may be a petitioner.
In an estate tax installment payment action, a person
joined pursuant to Code section 7479(b)(1)(B) is also a
party. In an exempt organization action, only the organization
may be a petitioner.
- (14) "Declaratory Judgment" is the decision of the Court
in a retirement plan action, a gift valuation action, a governmental
obligation action, an estate tax installment payment
action, or an exempt organization action.
- (c) Jurisdictional Requirements: The Court does not have
jurisdiction of an action for declaratory judgment under this Title
unless the following conditions are satisfied:
- (1) The Commissioner has issued a notice of determination,
or has been requested to make a determination and
failed to do so for a period of at least 270 days (180 days
in the case of either a request for determination as to the
status of prospective governmental obligations or a request
for determination as to the initial or continuing eligibility
of an estate with respect to installment payments under
Code section 6166) after the request for such determination
was made. In the case of a retirement plan action, the
Court has jurisdiction over an action brought because of
the Commissioner?s failure to make a determination with
respect to the continuing qualification of the plan only if
the controversy arises as a result of an amendment or termination
of such plan. See Code sec. 7476(a)(2)(B). In the
case of a gift valuation action, the Court has jurisdiction
if the Commissioner has issued a notice of determination.
See Code sec. 7477(a).
- (2) There is an actual controversy. In that connection--
- (A) In the case of a retirement plan action, the retirement
plan or amendment thereto in issue has been put
into effect before commencement of the action.
- (B) In the case of a governmental obligation action,
the prospective issuer has, prior to the commencement of
the action, adopted an appropriate resolution in accordance
with State or local law authorizing the issuance of
such obligations.
- (C) In the case of an exempt organization action, the
organization must be in existence before commencement
of the action.
- (3) A petition for declaratory judgment is filed with the
Court within the period specified in Code section 7476(b)(5)
with respect to a retirement plan action, or the period
specified in Code section 7477(b)(3) with respect to a gift
valuation action, or the period specified in Code section
7478(b)(3) with respect to a governmental obligation action,
or the period specified in Code section 7479(b)(3) with respect
to an estate tax installment payment action, or the
period specified in Code section 7428(b)(3) with respect to
an exempt organization action. See Code sec. 7502.
- (4) The petitioner has exhausted all administrative remedies
which were available to the petitioner within the Internal Revenue
Service.
- (d) Form and Style of Papers: All papers filed in an action
for declaratory judgment, with the exception of documents included
in the administrative record, shall be prepared in the form and
style set forth in Rule 23; except that
whenever any party joins or intervenes in the action in those
instances in which joinder or intervention is permitted, then
thereafter, in addition to the number of copies required to be
filed under such Rule, an additional copy shall be filed for each
party who joins or intervenes in the action.
1Amendments to Title XXI set forth procedures for declaratory judgment
actions under Code sections 7477 and 7479, added by sections 506(c)(1)
and 505(a), respectively, of the Taxpayer Relief Act of 1997, Pub. L. 105?
34, 111 Stat. 854. Code section 7477 provides for a declaratory judgment
relating to the valuation of a gift and is effective for gifts made after August
5, 1997. Code section 7479 provides for a declaratory judgment relating
to the eligibility of an estate with respect to installment payments
under Code section 6166 and is effective with respect to estates of decedents
dying after August 5, 1997. The amendments to the Rules of this
Title XXI that relate to gift valuation actions are effective as to proceedings
commenced with respect to gifts made after August 5, 1997; the
amendments that relate to estate tax installment payment actions are effective
as to proceedings commenced with respect to estates of decedents
dying after August 5, 1997; and the amendment that relates to oversheltered
return actions is effective as to proceedings commenced with respect
to partnership tax years ending after August 5, 1997.
2 The amendments are generally effective as of June 30, 2003; except
that the amendments that relate to gift valuation actions are effective as
to proceedings commenced with respect to gifts made after August 5, 1997;
the amendments that relate to estate tax installment payment actions are
effective as to proceedings commenced with respect to estates of decedents
dying after August 5, 1997; and the amendment that relates to oversheltered
return actions are effective as to proceedings commenced with respect
to partnership tax years ending after August 5, 1997.
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