U.S. Tax Court Settlements in IRS Appeals

In Notice 2015-72 the IRS proposes to update Rev. Proc. 87-24 regarding U.S. Tax Court Settlements in IRS Appeals. This proposal:

  1. Intends to ensure that docketed cases are handled consistently nationwide.
  2. Clarifies that, except in rare circumstances, Counsel will refer cases docketed in Tax Court to Appeals for settlement consideration.
  3. Recognizes that there are cases and issues that should not be referred to Appeals or for which Counsel needs additional time before referring the case to Appeals. The proposed revenue procedure clarifies the procedures for when those situations arise.
  4. Promotes the shared responsibility of Counsel and Appeals to interact in a manner that preserves Appeals’ independence such that even in docketed cases, Appeals may exclude Counsel from a settlement conferences with the taxpayer at the discretion of the Appeals function.
  5. Addresses coordination if a taxpayer raises a new issue while the docketed case is in Appeals.
  6. Describes procedures for requesting assistance from Counsel while the docketed case is in Appeals, and the internal procedures for handling and transferring custody of the administrative file for docketed cases referred to Appeals.

Basically out in Denver anyhow IRS Appeals and Local Area Counsel have been following the proposed guidelines set out in this notice for a while now and all seems good with my inventory of files. I am in favor of the proposed notice.

This does not apply to cases docketed under the follow sections:

  • IRC 6015(e)(1)(A)(i)(II) Relief from joint and several liability on joint return
  • IRC 6110 Public inspection of written determinations
  • IRC 6320 Notice and opportunity for hearing upon filing of notice of lien
  • IRC 6330 Notice and opportunity for hearing before levy
  • IRC 6402 Authority to make credits or refunds
  • IRC 7428 Declaratory judgments relating to status and classification of organizations under section 501(c)(3), etc.
  • IRC 7476 Declaratory judgments relating to qualification of certain retirement plans
  • IRC 7477 Declaratory judgments relating to value of certain gifts
  • IRC 7478 Declaratory judgments relating to status of certain governmental obligations
  • IRC 7479 Declaratory judgments relating to eligibility of estate with respect to installment payments under IRC 6166 - Extension of time for payment of estate tax where estate consists largely of interest in closely held business

The principal author of this revenue procedure is Jenni Black of the Office of Associate Chief Counsel (Procedure & Administration). For more on U.S. Tax Court Settlements in IRS Appeals contact Jenni Black at (202) 317-6834 or me.

John R. Dundon, EA [720-234-1177, John@JohnRDundon.com]. John is a lifelong student of the US Tax Code; enrolled with the United States Treasury Department to practice before the IRS (Enrolled Agent # 00085353); under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent; regulated under USC 31 Section 330 & USC 26 Section 7525a.3.A; governed under US Treasury Cir. 230.

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Posted in Appeals & Audit Resolution, IRS Appeal, IRS Enforcement, Tax Court, Tax Relief, United States Treasury

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