This section covers the processing of a docketed case from the time it appears on the Docket Information Management System (DIMS) until the time the case is closed.

This section covers the procedures for all docketed cases regardless of the type of tax involved.

Many of the same procedures are used on Campus S Docketed cases. However, there are some unique procedures that apply solely to the Campus S Docketed cases which are covered in IRM 8.4.2.

See IRM 8.7.1.10 for information covering Appeals Involvement in Docketed IRC 7430 Cases.

The procedures explain and/or provide references to cover Tax Examiners, Appeals Officers, and Tax Computation Specialists involved in processing docketed cases.

References to Appeals Officers also include the Appeals Team Case Leaders.

References to Examination include the Examiners in Small Business and Self Employed (SB/SE), Large and Mid-Size Business (LMSB) and Tax Exempt and Government Entities (TE/GE) groups.

Appeals mission statement states Appeals will close as many docketed cases as possible to avoid going to trial.

A docketed case is a tax case assigned a docket number in the U.S. Tax Court. These cases include petitions filed in response to:

A regular case is a tax case with a deficiency of more than $50,000 (including deficiency amount, additions to tax, additional amounts and penalties) for any one taxable period.

Taxpayers may elect to have their case conducted under the Court's simplified small tax case or "S" case procedures. Trials in small tax cases generally are less formal and result in speedier disposition. However, decisions entered pursuant to small tax case procedures cannot be appealed. See IRC 7463 for details. Taxpayers may elect small tax case procedures for tax disputes involving $50,000 or less (including tax and penalties.

Rev. Proc. 87-24, 1987–1 C.B. 720, describes the procedures for handling docketed cases in Appeals and Counsel.

Direct questions concerning Tax Court jurisdiction through the Field Counsel assigned to the case, to Branch 3 of the Office of Administrative Provisions and Judicial Practice.

Refer to IRM 13.1.7, Taxpayer Advocate Case Processing, for criteria to determine when it is necessary to refer a case to Taxpayer Advocate Services (TAS), and guidelines for processing TAS cases from assignment to completion.

Appeals has settlement authority in conjunction with Counsel over docketed cases. This authority remains in Appeals unless procedures require the case be returned to Counsel.

The Office of Chief Counsel (or the Associate Chief Counsel with subject matter jurisdiction over the case or issues) may, after consulting with the Chief, Appeals and the appropriate Area Counsel, determine that a case, or an issue or issues in a case, not be considered by Appeals. In such a situation, Appeals foregoes settlement authority on the case or issues.

Counsel and Appeals may agree jurisdiction will be returned to Appeals for settlement in a docketed case with strong likelihood of settlement for all or part of the case.

When the case is in Counsel's jurisdiction, it is in Part 3 on ACDS. When the case is returned to Appeals for reconsideration, APS inputs Closing Code 42 and a date closed equal to the date the case is received for reconsideration. This changes the "Part" on the open ACDS record from 3 to 2. The closed ACDS record retains Part 3 and the closing information

Some Tax Court terms and definitions are described in IRM 35.1.2. In addition, common definitions for docketed cases include:

The Docket List is a list of cases docketed by U.S. Tax Court. The list is prepared by Counsel after the Tax Court serves the taxpayer's petition(s) to the Commissioner. Counsel E-mails the list as an attachment to employees in various Operating Divisions/functions who are members of an E-mail distribution list maintained by Counsel. The list is used as a tool to assist source functions determine if a case is docketed.

The hard-copy Docket List shows:

In addition to creating and distributing the hard-copy Docket List by E-mail, Counsel also posts the Docket List as a file to a server. Appeals downloads the Docket List file from the server and posts it on its automated system, "Docket Information Management System (DIMS)" , a sub-system of the Appeals Centralized Database System (ACDS). DIMS is used in lieu of the hard-copy Docket List.

After the electronic file from Counsel is posted to DIMS, users are able to print either the entire list or sort the list so that it contains only the cases they control or need to locate.

The automated DIMS system is available to both Appeals and non-Appeals employees responsible for issuing and monitoring notices or letters containing Tax Court rights.

Access to DIMS is obtained through the Online 5081 process.

Appeals Processing Services (APS) uses DIMS to monitor the Docket List. See IRM 8.4.1.6.3.

After an established number of days (ranging from an additional 15 to 30 days) after the expiration of the period of time in which to file a petition to the Tax Court specified in the notice or letter, a case that does not appear on the Docket List is considered defaulted. See IRM 8.2.2, Processing 90-Day Cases and Defaulted Notices.

Although source functions are required to timely send docketed cases to Appeals, some docketed administrative files are not received timely. Cases are sometimes prematurely defaulted or defaulted in error for a variety of reasons.

In order to provide all available information regarding the case to Counsel for use in preparing and filing the answer, if a case appears on the Docket List or DIMS but is not received in Appeals within forty days after the date the petition is served on the IRS, APS will:

When the notice of deficiency was issued by Compliance or Campus and the administrative files for these cases are not received within ten (10) calendar days from the date the petition is received, contact the appropriate office to obtain the files.

If the Docket List indicates you have the administrative file of a case where jurisdiction is in another office, contact the office that has jurisdiction and transfer the administrative file. See IRM 8.20.6, Appeals Case Processing Procedures, Interim Actions, Remittances, Partials, Transfers and Returns.

If the administrative file is received first, establish ACDS control by using ACTION code FILERCVD.

If the petition is not received within seven (7) workdays from the receipt of the administrative file, contact the appropriate Counsel office to obtain a copy.

Annotate the case file with the date of contact or update ACDS.

If a case appears on the Tax Court calendar but not on ACDS, create the case on ACDS. This ensures the case will appear on the TAXCAL listing and will receive Appeals consideration.

The APS office servicing the Appeals office responsible for the Tax Court calendar is responsible for creating the case on ACDS. APS creates a "dummy" administrative file containing all available information regarding the case.

The original return must be requested in all docketed cases because it may be needed if the case goes to trial.

If the original return was not used as part of the examination process, the source function should not wait until the original return is received to send all other available documents to Appeals, such as the notice of deficiency, computation, workpapers, correspondence, etc. Instead, if the original return is not readily available, the source function must transmit the docketed case to Appeals without the original return, but include an unfilled requisition, a transcript of account, and a copy of the return in the case file. APS accepts docketed administrative files without the original return(s) to facilitate providing all available information as soon as possible to Counsel for use in answering the petition.

If the docketed case file does not contain the original return, take steps to ensure it was requested or if necessary, requisition it as soon as possible.

If the case is not on AIMS and the notice was issued by the Campus, take the following steps to secure the case file.

The responsibility for locating administrative files for all docketed cases is centralized in Brookhaven Appeals Processing Services (APS) and Fresno APS. These two campuses are referred to as centralized APS DIMS Offices.

The centralized APS DIMS Offices are responsible for making the initial and follow-up contacts to locate the administrative files. The source function sends the administrative files directly to the appropriate Appeals office.

There is a tracking system within DIMS used to record the actions taken to locate administrative files for docketed Tax Court cases, and to electronically track and monitor receipt of file. DIMS Tracking allows the user to enter contact information, such as the dates and names, action notes, responses received, date the file was received, and other information, i.e. defaulted, TC 922 (AUR case), AIMS status etc.

If the administrative files of these cases are not received from the Compliance office or the Campus which issued the notices of deficiency within ten (10) calendar days from the date the list is received, contact the employee assigned responsibility for locating the case at the appropriate office to obtain the files.

Acknowledge receipt of the administrative file.

Upon receipt of a newly assigned docketed regular OR "S" case administrative file from the APS Processing Team Manager (PTM), promptly takes the following steps.

Verify the contents of the administrative file to determine if all documents, returns, etc. listed on transmittal Form 3210 are present in the file. If everything was received, sign the acknowledgment copy of the Form 3210 and return it to the originator by mail or fax. Keep a copy of the Form 3210 in the case file.

Print TLCATS Case Screen 1 – Identify and highlight the Answer Due Date, Caption, and Years Petitioned.

Card the case on ACDS using the administrative file and TLCATS documents.

Verify and act upon non-petitioned years (NPY) and non-petitioning spouses (NPS). Rely on TLCATS for the years and parties identified in the petition. Take immediate and appropriate steps to assess, when necessary. Upon receipt of the case file from the Campus, examine TLCATS and the notice of deficiency to determine whether all of the parties named, and all the years covered, in the notice of deficiency are included in the petition. If any of the parties or years shown in the statutory notice are not listed on TLCATS, follow procedures in IRM 8.20.6, Appeals Case Processing Manual, Interim Actions, Remittances, Partials, Transfer and Returns.

Identify, based upon existing case routing guidelines, which Appeals office will consider the docketed case when it is returned by Counsel after answer and which APS office will process the case upon closing. Complete the Appeals/Counsel Routing Cover Sheet (A copy of the Cover Sheet is posted on the Appeals web site). This document instructs Counsel to send the administrative file to the specified Appeals office address, to the attention of the Lead Appeals Team Manager (ATM), for assignment and consideration. It also clearly identifies the Appeals office and APS address the administrative file must be returned to for closing.

Update ACDS for EACH docketed work unit where the administrative file is sent to Counsel for answer with ACTION = "ANSWER" and a "TODATE" equal to the date the file was sent. This ensures the "ANSWER" follow-up report is generated and worked.

Send the administrative file to the appropriate Counsel office for answer, as identified in TLCATS Screen 1.

Close the DIMS record by entering a date in the "Case on ACDS" field = the date the case was created on ACDS (ACDS CREATED).

The Covington Campus APS office is currently assigned responsibility for preparing the dummy file for answer, carding the case on ACDS, and promptly sending it to Counsel by fax or overnight mail. The most current information regarding assignment of dummy file responsibilities in APS is found on the APS page of the Appeals web site.

The dummy file for answer consists of copies of all available information obtained from a variety of sources. Most IRS Campus Exam sourced cases are controlled on the Correspondence Examination Automation System (CEAS). In Appeals, designated centralized DIMS and Covington Campus APS employees have permission to access CEAS for research only.

A "dummy" administrative file contains all available information related to the case. The dummy file for answer purposes must contain, at a minimum: A "dummy" administrative file contains all available information related to the case. The file contains the following:

If the notice of deficiency is issued to both a husband and wife who filed a joint return and only one spouse petitions the U.S. Tax Court and the other spouse agrees or does not take appeal action, this is considered a non-petitioning spouse case.

Verify the address of both taxpayers on all non-petitioning spouse cases. Use IDRS command code SPARQ to determine if the last known address of both taxpayers is the same as the address on the notice of deficiency.

When it is clear the notice of deficiency was sent to the last known address, ensure a default assessment is made on the non-petitioning spouse. If not, make the default assessment.

If separate residences were established and it is not clear from the administrative file that both taxpayers received the notice of deficiency, take the following actions:

Information pertaining to closing a non-petitioning spouse case is found in a subsequent section. See IRM 8.4.1.32.

See IRM Part 8.2.2.12, APS Actions on Non-Petitioned Year(s) in Multiple Year Statutory Notice, for procedures relating to assessment of a year included on the notice of deficiency but not on the petition.

If the notice of deficiency is issued to both a husband and wife who filed a joint return and each files a separate petition with the U.S. Tax Court, each docket number is a separate work unit number. Follow the procedures in the following subsections to establish the returns on ACDS.

Usually these cases are received from the Campus in docketed status. Although it is possible for the taxpayers to request an Appeals hearing, time constraints limit the number of cases received in non-docketed status.

When received, establish them on AIMS (CC/AM424A) if not done by the Campus prior to sending the case.

These cases are IMF accounts only.

Establish on CASES following normal procedures except for:

Typically, the SFR only involves one spouse even though both husband and wife may have petitioned the Tax Court. Until a joint filing status is approved by the Appeals Officer, only the name/TIN reflected on the SFR are established on AIMS/ACDS. When appropriate, the case is converted from Separate to Joint at closing.

Delinquent returns are sometimes filed with the Appeals Officer. Guidance is provided for processing the delinquent returns in various situations most common in Appeals.

If Appeals receives a delinquent JOINT return when a docketed case already exists for one spouse or the other, the return must be processed to APS to "post as an amended return" against the docketed spouse's account and to assess.

Once a notice of deficiency is issued, the election of "joint filing status" must be made on a return. A Form 870 or stipulated decision document does not constitute a return for this purpose.

Control the statute on the non-docketed spouse as a reference return.