[Code of Federal Regulations]
[Title 26, Volume 20]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR601.802]

[Page 138-139]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 601_STATEMENT OF PROCEDURAL RULES--Table of Contents
 
                Subpart H_Tax Counseling for the Elderly
 
Sec. 601.802  Cooperative agreements.

    (a) General. Tax Counseling for the Elderly programs will be 
administered by sponsor organizations under cooperative agreements with 
the Internal Revenue Service. Use of cooperative agreements is in 
accordance with the Federal Grant and Cooperative Agreement Act of 1977, 
Pub. L. 95-224, February 3, 1978 (92 Stat. 3, 41 U.S.C. 501-509). 
Cooperative agreements will be legally binding agreements in document 
form.
    (b) Nature and contents of cooperative agreements. Each cooperative 
agreement will provide for implementation of the program in specified 
geographic areas. Cooperative agreements will set forth:
    (1) The functions and duties to be performed by the Internal Revenue 
Service and the functions and duties to be performed by the program 
sponsor,
    (2) The maximum amount of the award available to the program 
sponsor,
    (3) The services to be provided for each geographical area, and
    (4) Other requirements specified in the application.
    (c) Entry into cooperative agreements. The Commissioner of Internal 
Revenue, the Director, Taxpayer Service Division, or any other 
individual designated by the Commissioner may enter into a cooperative 
agreement for the Internal Revenue Service.
    (d) Competitive award of cooperative agreements. Cooperative 
agreements will generally be entered into based upon competition among 
eligible applicants.
    (1) To be eligible to enter into a cooperative agreement, an 
organization must be a private or public non-profit agency or 
organization with experience in coordinating volunteer programs. 
Federal, state, and local governmental agencies and organizations will 
not be eligible to become program sponsors.
    (2) Eligible applicants will be selected to enter into cooperative 
agreements based on an evaluation by the Internal Revenue Service of 
material provided in their applications. The Service will set forth the 
evaluative criteria in the application instructions.
    (3) Determinations as to the eligibility and selection of agencies 
and organizations to enter into cooperative agreements will be made 
solely by the Internal Revenue Service and will not be subject to 
appeal.
    (e) Noncompetitive award of cooperative agreements. If 
appropriations to implement the Tax Counseling for the Elderly program 
are received at a time close to when tax return preparation assistance 
must be provided or when other factors exist which make the use of 
competition to select agencies and organizations to enter into 
cooperative agreements impracticable, cooperative agreements will be 
entered into without competition with eligible agencies and 
organizations selected by the Internal Revenue Service. Determination of 
when the use of competition is impracticable will be made solely by the 
Internal Revenue Service and will not be subject to appeal.
    (f) Renegotiation, suspension, termination and modification. (1) 
Cooperative agreements will be subject to renegotiation (including the 
maximum amount of the award available to a sponsor), suspension, or 
termination if performance reports required by the cooperative agreement 
and/or other evaluations by or audits by the Internal Revenue Service or 
others indicate that planned performance goals or other provisions of 
the cooperative agreement, the regulations, or Section 163 of

[[Page 139]]

the Revenue Act of 1978 are not being satisfactorily met. The necessity 
for renegotiation, suspension, or termination, will be determined solely 
by the Internal Revenue Service and will not be subject to appeal.
    (2) Cooperative agreements may be modified in writing by mutual 
agreement between the Internal Revenue Service and the program sponsor 
at any time. Modifications will be based upon factors such as an 
inability to utilize all funds available under a cooperative agreement, 
the availability of additional funds and an ability to effectively 
utilize additional funds, and interference of some provisions with the 
efficient operation of the program.
    (g) Negotiation. If the proposed program of an eligible applicant 
does not warrant award of an agreement, the Internal Revenue Service may 
negotiate with the applicant to bring the application up to a standard 
that will be adequate for award. If more than one inadequate application 
has been received for the geographic area involved, negotiation to bring 
all such applications up to a standard will be conducted with all such 
applicants unless time does not permit negotiations with all.