[Code of Federal Regulations]
[Title 26, Volume 5]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.414(r)-6]

[Page 748-749]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.414(r)-6  Qualified separate line of business--administrative 
scrutiny requirement--individual determinations.

    (a) In general. A separate line of business (as determined under 
Sec. 1.414(r)-3) that does not satisfy any of the safe harbors in Sec. 
1.414(r)-5 for a testing year nonetheless satisfies the administrative 
scrutiny requirement of Sec. 1.414(r)-1(b)(2)(iv)(D) if the employer 
requests and receives from the Commissioner an individual determination 
under this section that the separate line of business satisfies the 
requirement of administrative scrutiny for the testing year. This 
section implements the individual determinations provided for under 
section 414(r)(2)(C). The Commissioner shall issue such an individual 
determination only when it is consistent with the purpose of section 
414(r), taking into account the nondiscrimination requirements of 
sections 401(a)(4) and 410(b). Paragraph (b) of this section authorizes 
the Commissioner to establish procedures for requesting and granting 
individual determinations.
    (b) Authority to establish procedures. The Commissioner may, in 
revenue rulings and procedures, notices, and other guidance, published 
in the Internal Revenue Bulletin (see

[[Page 749]]

Sec. 601.601(d)(2)(ii)(b) of this chapter), provide any additional 
guidance that may be necessary or appropriate for requesting and 
granting individual determinations under this section. For example, such 
guidance may specify the circumstances in which an employer may request 
an individual determination and factors to be taken into account in 
deciding whether to grant a favorable individual determination. In 
addition, such guidance may describe situations that automatically fail 
the administrative scrutiny requirement.

[T.D. 8376, 56 FR 63452, Dec. 4, 1991, as amended by T.D. 8548, 59 FR 
32920, June 27, 1994]