8.6.1  Conference and Issue Resolution

Manual Transmittal

June 25, 2015

Purpose

(1) This transmits revised IRM 8.6.1, Conference and Settlement Practices, Conference and Issue Resolution.

Material Changes

(1) This IRM section was revised as follows:

IRM Section Description
IRM 8.6.1.1 In paragraph 2, corrected title for IRM 8.6.1.2. In paragraph 4, changed the word practitioners to representatives.
IRM 8.6.1.2.1 (3) Added title for IRM 8.7.8, Tax Exempt and Government Entities (TE/GE Cases).
IRM 8.6.1.2.2 Added titles to IRM cites and deleted last sentence from paragraph 2 as unnecessary.
IRM 8.6.1.3 Added paragraph (2), as a result of new IRM 8.6.1.3.3, Change of Address. Deleted paragraph (6) about the customer satisfaction survey since this information was summarized in IRM 8.6.1.4(1).
IRM 8.6.1.3.3 (new) Added new section, Change of Address - resulting in IRM 8.6.1.3.3 through IRM 8.6.1.3.5 being renumbered as IRM 8.6.1.3.4 through IRM 8.6.1.3.6.
IRM 8.6.1.3.4 (new) Added paragraph (7) for clarification on Form 8821 under Copies of Written Communications.
New IRM 8.6.1.3.5 (4) Added "Note" to reference IRM 8.17.4.6, When Should TCS Prepare Duplicate Original Notices.
IRM 8.6.1.3.6 (new) Updated paragraph (1) to identify an IRS employee's unique identifying number required on manually-generated correspondence. Revised paragraph 1 for clarification and merged paragraphs 1 and 2. Removed paragraph 3 since it isn't necessary.
IRM 8.6.1.4 (1) Deleted old IRM 8.6.1.3.6 and included in IRM 8.6.1.4(1) guidance for ATEs to provide the taxpayer with an explanation of the Appeals process and to notify the taxpayer about the customer satisfaction survey.
IRM 8.6.1.4.1.1 (5) Added a designated circuit-riding location in South Dakota. Also, Added reference to IRM 8.6.1.4.5, Virtual Service Delivery (VSD).
IRM 8.6.1.4.2 Corrected IRM cite for Collection Due Process (CDP) case where ATE had prior involvement.
IRM 8.6.1.4.4(2) Revised paragraph for clarification.
IRM 8.6.1.4.5 Incorporated IG AP-08–0714–0007, Implementation of Virtual Service Delivery (VSD). Also, added Exhibit 8.6.1-1, Virtual Service Delivery (VSD) Locations.
IRM 8.6.1.5.2 Revised to clarify the relevant IRC section for allowing audio recording.
IRM 8.6.1.6.1 Revised paragraph (1) for clarification.
IRM 8.6.1.6.4 Incorporated IG AP-08-0714-0004, Implementation of the Appeals Judicial Approach and Culture (AJAC) Project Examination and General Matters - Phase 2, Taxpayer Raises New Issue. Add paragraph (6) to include reference to IRM 8.7.4.2, Estate Cases Worked in Appeals.
IRM 8.6.1.6.5 Incorporated IG AP-08-0714-0004, Implementation of the Appeals Judicial Approach and Culture (AJAC) Project Examination and General Matters - Phase 2, Taxpayer Provides New Information. Also, added Note to paragraph (2) to incorporate IG AP-08-0814-008 for AJAC feature code NI (New Information) for Campus-sourced cases.
IRM 8.6.1.6.6 Incorporated IG AP-08-0714-0004, Implementation of the Appeals Judicial Approach and Culture (AJAC) Project Examination and General Matters - Phase 2, Taxpayer Raises New Theory or Alternative Legal Argument.
IRM 8.6.1.6.7 Incorporated IG AP-08-0714-0004, Implementation of the Appeals Judicial Approach and Culture (AJAC) Project Examination and General Matters - Phase 2, Jurisdiction Released.
  Editorial Changes throughout

Effect on Other Documents

This IRM supersedes IRM 8.6.1, Conference and Settlement Practices, Conference and Issue Resolution (dated November 14, 2013) and incorporates the following interim guidance:
AP-08-0714–0004, Implementation of the Appeals Judicial Approach and Culture (AJAC) Project Examination and General Matters - Phase 2 (dated July 02, 2014);
AP-08–0714–0007, Implementation of Virtual Service Delivery (VSD) (dated July 24, 2014); and
AP-08-0814-0008, Appeals Judicial Approach and Culture (AJAC) Feature Codes and Premature Referral Reason (dated August 6, 2014).

Audience

Appeals employees

Effective Date

(06-25-2015)


John V. Cardone
Director, Policy, Quality and Case Support 

8.6.1.1  (06-25-2015)
Introduction to Discussion on Conferences

  1. This section covers procedures used by Appeals Technical Employees (ATEs) who conduct conferences for the purpose of resolving issues in dispute. A description of ATEs can be found in IRM 8.1.1, Appeals Operating Directives and Guidelines, under Exhibit 8.1.1-1, Common Terms Used in Appeals. As an integral part to accomplishing the Appeals mission, schedule conferences on dates and at locations reasonably convenient to taxpayers and/or their representatives. Also offer to schedule telephone conferences, and when convenient for the taxpayer, conduct conferences by correspondence.

  2. See IRM 8.6.1.2, Transfers of Cases Within Appeals, for information about transferring or returning a case.

  3. Conference procedures for Appeals Team Case Leaders (ATCLs) are covered in IRM 8.7.11, Working Appeals Team Cases.

  4. When conducting conferences with taxpayers and/or representatives, it is important that all Appeals personnel provide a unified position in the settlement of an issue. See IRM 8.1.1.1, Accomplishing the Appeals Mission, for further information.

8.6.1.2  (11-14-2013)
Transfers of Cases Within Appeals

  1. This section provides guidance involving the transfer of a case within Appeals. See IRM 8.6.1.2.4, Procedures to Transfer Cases Within Appeals, for procedures to transfer the administrative file.

  2. When considering the need to return a case to the originating Compliance office (referred to as a "premature referral" ), the ATE should review IRM 8.2.1.4, Receipt of New Assignment by an ATE, and IRM 8.2.1.5, Returning a Case to Examination - ATE.

8.6.1.2.1  (06-25-2015)
Transfers of Nondocketed Cases

  1. Work units which are part of a Coordinated Industry Program (CIP) case, should be transferred to the Appeals Office that serves the primary territory or area for the case. See IRM 4.46, LB&I Guide for Quality Examinations, for the definition of a Coordinated Industry Case (CIC).

  2. Where partnerships are not covered by the TEFRA provisions of IRC 6221 – IRC 6234, the "key case" concept still applies. Appeals will transfer the first protesting partner's return from some other area to the Appeals Office with jurisdiction over the related partnership return. For more information about Non-TEFRA entities, see IRM 8.19.9.2.1.2, Protest.

  3. Cases appealed from the Employee Plans (EP) and Exempt Organizations (EO) business units [under Tax Exempt and Government Entities (TEGE) Operating Division] should be sent to the designated Appeals Offices where Appeals Officers are located with expertise in these issues. See IRM 8.7.8, Tax Exempt and Government Entities (TE/GE) Cases, for Exhibit 8.7.8–1, List of Employee Plans and Exempt Organizations Areas.

    1. Cases containing Employee Plan (EP) and/or Exempt Organization (EO) issues may also originate in the Small Business/Self-Employed (SBSE) Division or Large Business & International (LB&I) Division. For example, a pension plan deduction, on Form 1120, may be disallowed due to the employer’s use of incorrect actuarial assumptions. Such cases may be transferred to an Appeals Office with expertise in the subject matter. Factors to consider include, for example, the level of difficulty of the case and the workload of the offices. Contact the appropriate Appeals TEGE area office regarding guidelines concerning the transfer of these cases.

    2. Welfare benefit issues such as cafeteria plans, COBRA continuation health care coverage and voluntary employees' beneficiary associations (VEBAs) may also be transferred to the Appeals Office with expertise in exempt organization matters. Consult the appropriate Appeals TEGE area office regarding guidelines concerning the transfer of these cases.

8.6.1.2.2  (06-25-2015)
Transfers for the Convenience of Taxpayers

  1. A taxpayer or representative may request a transfer to any Appeals Office. See paragraph 3 in IRM 8.1.1.1, Accomplishing the Appeals Mission.

  2. An Appeals Office will transfer jurisdiction of a case when the transfer does not conflict with the provisions of IRM 8.6.1.2.1, Transfers of Nondocketed Cases, IRM 8.6.1.2.3, Initial Assignment and Transfers of Docketed Cases in Appeals’ Jurisdiction, or other workstream specific guidance. See IRM 8.22.5, Collection Due Process, IRM 8.23, Offer in Compromise, and IRM 8.24.1, Collection Appeals Program for specific exceptions to transfers for a face to face conference. .

  3. See IRM 8.6.1.4.1, Reasonable, Convenient Conference Opportunities (Circuit Riding), for decisions involving "Circuit Riding" .

8.6.1.2.3  (11-14-2013)
Initial Assignment and Transfers of Docketed Cases in Appeals’ Jurisdiction

  1. Docketed cases in Appeals’ jurisdiction are generally assigned for consideration to an employee in the Appeals office designated on the docket list. Follow the procedures in IRM 8.1.1.1(3) if the petitioner or counsel of record requests a transfer for a face-to-face conference.

  2. The general docketed case assignment principles in paragraph (1) above are modified for certain types of cases that are transferred in Appeals to designated offices for assignment to employees who specialize and have expertise in the subject matter. Such case types include the following:

    1. Employee plan cases

    2. Exempt organization cases

    3. Estate tax cases

    4. Gift tax cases

    5. Cases with international issues

    6. TEFRA key cases

  3. When required, docketed cases containing certain issues are referred through the automated 13381 system to the appropriate Appeals Team Manager for assignment to the Technical Guidance Coordinator or specialist as a team member or a consultant. See IRM 8.7.3, Domestic and International Operations Programs, and IRM 8.18.1, Valuation Assistance Procedures. The following issues must be referred to a specialist:

    1. Compliance Coordinated Issues (Feature Code IS)

    2. Appeals Coordinated Issues (Feature Code AI)

    3. Appeals Emerging Issues (Feature Code EM)

    4. Abusive Tax Avoidance Transactions (ATAT) (Feature Code LT)

    5. Penalties related to ATAT issues

    6. Engineering issues

    7. Certain valuation issues in connection with personal property and works of art

  4. Transfers of docketed cases under any other circumstances may only be made as follows:

    1. Transfers between Appeals Offices “within the same area” must be approved by the Area Director.

    2. Transfers between Appeals Offices “in different areas” must be agreed upon by the Area Directors for the transferring and receiving areas. If they cannot agree, the proposed transfer may be referred to the Chief, Appeals for decision.

8.6.1.2.4  (11-14-2013)
Procedures to Transfer Cases Within Appeals

  1. Use Form 3210, Document Transmittal, to transfer cases between Appeals Offices. Addresses may be obtained from Document 6209, IRS Processing Codes and Information, or refer to the addresses listed under "Case Routing" on the Account and Processing Support (APS) page of the Appeals web site at http://appeals.web.irs.gov/APS/caserouting.htm.

  2. Form 3210 is used to send the case file to the receiving Appeals Office. Two copies of Form 3210 will be attached to the case file. A third copy of Form 3210 will be held in suspense by the transferring office. Any necessary approvals of the Appeals Area Directors or the Chief, Appeals will be obtained and documented in the file before transferring a case.

  3. To indicate acceptance of the case, the receiving office will acknowledge receipt by signing and dating the appropriate boxes on the form and returning a copy of the signed Form 3210 to the transferring Appeals Office. If some reason exists for "not accepting a transfer" , the receiving office will return the case with an explanation. Contact by telephone or E-mail is suggested, before returning the case.

  4. The receiving office should notify the taxpayer of the transfer after accepting jurisdiction of the case.

8.6.1.2.5  (11-14-2013)
Procedures to Deny Transfer

  1. If circumstances indicate that an otherwise allowable case transfer would be undesirable or disadvantageous to the Service, the transfer may be denied as follows:

    1. Denials of transfers between Appeals Offices "within an area " must be approved by the Area Director.

    2. Denials of transfers between Appeals Offices "in different areas" must be agreed upon by the Area Directors for the areas involved. If they cannot agree, the proposed denial may be referred to the Chief, Appeals, for decision.

  2. A memorandum - that sets forth the reasons for denying a transfer and that requests approval of the denial - should be routed to the appropriate official(s) for action.

8.6.1.3  (06-25-2015)
Communications with the Taxpayer and/or Representative

  1. This subsection provides directions on the use of answering machine/voice mail and faxes when communicating with the taxpayer and/or the representative. See IRM 8.6.1.3.1, Leaving Information on Answering Machines / Voice Mail, and IRM 8.6.1.3.2, Using a Fax Machine to Communicate.

  2. IRM 8.6.1.3.3, Change of Address, contains instructions for verifying and/or updating a taxpayer's address.

  3. IRM 8.6.1.3.4, Copies of Written Communications, contains procedures for providing copies of communications to taxpayers, when a valid Power of Attorney exists.

  4. IRM 8.6.1.3.5, Relief from Separate Notice Requirements [Section 3201(d) of RRA ‘98)], provides guidance on preparing written communications when working with taxpayers who file a joint return. It outlines relief from the separate notice requirements of Section 3201(d) of RRA '98.

  5. The ATE's badge number must be included on all written correspondence to the taxpayer and/or the representative. See IRM 8.6.1.3.6, Unique Identifying Number on Correspondence.

8.6.1.3.1  (11-06-2007)
Leaving Information on Answering Machines/Voice Mail

  1. Answering machines and voice mail are frequently used when communicating with taxpayers, representatives, and other IRS employees. These systems are not secure and may not be used to transmit sensitive information, including tax information, except under the provisions of IRC 6103, Confidentiality and Disclosure of Returns and Return Information.

  2. Guidelines for leaving information on answering machines/voice mail may be found in IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail.

8.6.1.3.2  (11-06-2007)
Using a Fax Machine to Communicate

  1. Appeals employees must remember to protect tax information when using the fax machine. IRC 6103 provides details on the confidentiality and disclosure rules that must be followed when working with taxpayer return or taxpayer return information.

  2. IRM 11.3.1.11, Facsimile Transmission of Tax Information, specifically addresses the use of faxes.

  3. In addition, Appeals employees should be familiar with the provisions of IRM 8.1.6.1, Practice Before Appeals, which details what each Appeals employee must verify before disclosing information of a confidential nature.

  4. Faxed information is not sealed and little protection is guaranteed at the receiving end. To protect confidential tax information, certain precautions must be taken. At a minimum employees should:

    1. Use a cover sheet, identifying the person for whom the information is intended and the number of pages being faxed.

    2. If faxing to the taxpayer, avoid including specific confidential information, other than name and phone number, on the cover sheet.

    3. If faxing to an authorized third party, use that person’s name on the cover sheet – not the taxpayer’s [IRM 11.3.1.11 (11)].

    4. Use the standard caveat found in IRM 11.3.1.11 (12) on all fax cover sheets. The standard language is on the fax cover sheet generated from ACDS.

    5. Fax the information in an order in which the cover sheet will become the first page covering the faxed tax information.

  5. IRM 11.3.1.11(9)(a) indicates that the taxpayer must provide "authorization to fax" and "authorization where to fax" prior to transmission. In addition, employees must inform the taxpayer of potential disclosure risks and document this in the taxpayer’s file. These requirements are reiterated in the IRS Information Protection Briefing available through ELMS.

  6. If any doubt exists as to security of the faxed information, employees should mail the information to the taxpayer’s address of record or furnish it to the taxpayer at the Appeals conference.

8.6.1.3.3  (06-25-2015)
Change of Address

  1. Verify the taxpayer's address. On a joint module, verify the address for each spouse. See the following IDRS commands that might be useful in verifying the taxpayer's address on Master File:

    • ENMOD (IRM 2.3.15.1)

    • SPARQ (IRM 2.3.47.6)

    • IMFOL"E" (IRM 2.3.51, Exhibit 2.3.51-13)

    • BMFOL"E" (IRM 2.3.59. Exhibit 2.3.59-13)

  2. If the taxpayer provides an address that does not match the address posted on Master File, advise the taxpayer to update his or her address with the IRS using:

    • Form 8822, Change of Address; or

    • Form 8822-B, Change of Address or Responsible Party - Business.

  3. If the case is docketed, also advise the petitioner to update his or her address with the United States Tax Court. The taxpayer can obtain Form 10, Notice of Change of Address, from the Tax Court's website at www.ustaxcourt.gov.

  4. Determine the need to update the taxpayer's address on Master File. Prior to requesting a Master File update, ensure the change is being made as the result of clear and concise notification in accordance with Rev. Proc. 2010-16. This guidance explains how the Service is informed of a change of address. When so informed, update the taxpayer's Master File record to the new address.

    Note:

    The Service uses the taxpayer's address of record for the various documents that are required to be sent to a taxpayer's "last known address" under the Internal Revenue Code and for refunds of overpayments of tax. See IRM 8.17.4.8.7, Taxpayer’s Last Known Address, for additional information.

8.6.1.3.4  (06-25-2015)
Copies of Written Communications

  1. Original notices and other written communications are required to be sent to the taxpayer.

  2. The taxpayer may submit a completed Form 2848, Power of Attorney and Declaration of Representative, to authorize one or more eligible individuals to represent the taxpayer before IRS.

  3. On line 2 (of Form 2848), the taxpayer must check the box - below the representative's name and address - if the taxpayer wants the IRS to routinely send copies of notices and communications to the representative(s) and so long as the notice or correspondence is within the scope of the representation authority of the representative. IRS can send copies of notices and communications up to two individuals. If the taxpayer does not check the boxes, the ATE will not routinely send copies of notices and communications. The ATE is not required to send forms, publications, and other related material with the notices unless another IRM section specifically states that such form, publications, and other related material is required to be sent.

    Note:

    ATEs are not prohibited from providing a copy of a notice or communication to a representative if the box is not checked.

  4. Furnish copies of communications received from the taxpayer to the authorized representative if the communications have a direct bearing on the nature of his/her representation.

  5. In a docketed U. S. Tax Court case, address and send all written communications to the Counsel of Record, if any. See IRM 8.4.1.15.1, Attorney of Record in Docketed Cases. Also, see Appeals' web page at http://appeals.web.irs.gov/tech_services/docketed/docketed.htm for additional information.

  6. See 26 CFR 601.506 for additional information about Conference and Practice Requirements. Also, see Form 2848, Form 2848 Instructions, and Publication 947, Practice Before the IRS and Power of Attorney.

    Note:

    A separate Form 2848 should be completed for each taxpayer.

  7. Form 8821, Tax Information Authorization, allows taxpayers to authorize individuals, corporations, firms, organizations, or partnerships to inspect and/or receive confidential tax information including written communications. It cannot be used to appoint a representative. For more information on Form 8821, see IRM 4.11.55.1.7.2, or IRM 5.1.23.3.3 for more information on Form 8821 - Tax Information Authorization.

8.6.1.3.5  (06-25-2015)
Relief from Separate Notice Requirements [Section 3201(d) of RRA '98]

  1. Section 3201(d) of Restructuring and Reform Act of 1998 (RRA ‘98) requires that, wherever practicable, any notice relating to a joint return be sent separately to each individual filing the joint return. The phrase "any notice" , at a minimum, covers all notices required to be sent by statute. However, some notices not required by statute may be includible if they relate to the collection of the taxpayers’ joint and several liabilities or to any adjustment that may result in the issuance of a statutory notice of deficiency under IRC 6212.

  2. In certain instances, Letter 967(CG), Letter Transmitting Consent Extending Period of Limitation, does not have to be sent separately to joint return taxpayers. The right to refuse, allowed by IRC section 6501(c)(4)(B), now included on the Form 872, satisfies the requirements of section 3201(d) when one Letter 967 and one Form 872 are sent to spouses filing jointly as long as Appeals is confident that the spouses live at the same address. To ensure that both spouses receive their rights, Appeals must:

    • receive either one Form 872 - signed by both spouses or

    • receive two Forms 872 - one signed by each spouse.

      Note:

      If a Form 872 with only one signature is received, a separate Letter 967 and Form 872 must be sent to the spouse who did not sign the Form 872.

  3. Appeals is not required to send initial contact letters separately to each spouse under section 3201(d) of RRA ‘98 because the letters do not contain a notice required by statute; however, Appeals is not precluded from sending them separately.

  4. To summarize, the following table presents the actions that must be taken by Appeals when working joint returns:

    If ... Then ...
    Sending any type notice or correspondence Document what was sent and whether it was a separate mailing or a joint mailing to the spouses. If it is a joint mailing, document why a separate mailing was not used.
    Spouses have different mailing addresses Send all notices and correspondence in separate mailings to each spouse.
    Spouses have the same mailing address Send notices required by statute in separate mailings to each spouse.
    All other documents can be sent using joint mailing.
    One or both spouses have not indicated a new mailing address All notices and letters must be sent to the last known address within the meaning of 26 CFR 301.6212-2.
    Send notices required by statute in separate mailings to each spouse using the last known address.

    Note:

    See IRM 8.17.4.6, When Should TCS Prepare Duplicate Original Notices, for more information regarding when two original notices are required.

8.6.1.3.6  (06-25-2015)
Unique Identifying Number on Correspondence

  1. Section 3705(a) of the Restructuring and Reform Act of 1998 (RRA 98) requires the IRS to include on any manually generated correspondence to a taxpayer or authorized representative the name, telephone number, and unique identifying number of an employee who can be contacted with respect to the correspondence. In the IRS, the unique identifying number is an employee’s 10-digit Smart ID badge number. Manually generated correspondence includes faxes and e-mails.

  2. All forms of communication generated on APGolf automatically include the employee’s badge number if the employee’s ACDS profile is updated to include the badge number. Employees should update their own ACDS profile to include their badge number. To update your ACDS profile, click on the "PERSONNEL" button from the ACDS top menu, then "Update Profile," then "badge number." Enter the 10-digit badge number and click "submit update."

    Note:

    When APGolf is not used, the correspondence, fax and/or e-mail require the employee badge number be manually inserted if the number has not been previously provided.

8.6.1.4  (06-25-2015)
Conference Techniques Used by Appeals Technical Employees (ATEs)

  1. Conference techniques used by ATEs vary depending on the types of cases but there is no substitution for preparation, judgment, and common sense when conducting an Appeals conference. The ATE should provide the taxpayer with an explanation of the Appeals process and notification that the taxpayer might be contacted by an outside contractor to participate in a survey.

  2. Be thoroughly prepared for all aspects of a case. This maximizes the possibility of closing the case with one conference while resolving the disputed issues in a quasi-judicial manner. It is essential to have an open mind and genuine interest in achieving a mutually acceptable agreement.

  3. Set realistic target dates for the taxpayer and/or the representative to submit additional information, and proposal and counterproposal settlements. Ensure they understand the need to adhere to the dates set.

  4. Completing a conference timely and making accurate and prompt decisions enables the taxpayer to know with the least amount of delay, the final decision of the Internal Revenue Service regarding the amount of tax liability, or other issues in dispute.

  5. Appeals conferences are informal to promote frank discussion and mutual understanding. Do not consider ideological kinds of arguments. Handle conferences objectively with a goal of reaching a sound decision based upon the merits of the issues in dispute.

  6. Conduct conferences in an open atmosphere that fosters cooperation in the resolution of disputes. Above all, it is of utmost importance to be a good listener.

8.6.1.4.1  (11-06-2007)
Reasonable, Convenient Conference Opportunities (Circuit Riding)

  1. Hold conferences on dates and in locations reasonably convenient to taxpayers and representatives. Generally, use Appeals offices, sub-offices, or other IRS-staffed posts of duty that are not temporary or part-time locations. However, managers may approve holding conferences at other sites when feasible and necessary to provide a convenient conference opportunity. Ordinarily, the amount in dispute is not an important factor in approving another conference site.

  2. Hold the number of conferences to a minimum. A frank discussion of the facts and law ordinarily brings a case to a prompt conclusion.

8.6.1.4.1.1  (06-25-2015)
Circuit Riding

  1. Evaluate the merits of all circuit riding requests and consider the reasons the taxpayer and ATE need to meet face-to-face. Some factors to consider:

    • The case involves factual issues that would merit a face-to-face meeting

    • There are substantial books and records to review. Since Appeals is not the first finder of fact, arrangements should be made through the Appeals Team Manager to have a revenue agent or Tax Compliance Officer available to review any substantial books and records before and/or during the conference

    • The taxpayer will be present and the ATE will be able to determine the credibility of the oral testimony

    • The taxpayer has presented valid reasons why he/she cannot come to the nearest Appeals Office. These reasons could include the special needs of a disabled or low-income taxpayer.

    • The distance the taxpayer would have to travel would be unreasonable or cause a hardship

  2. Allow circuit riding when the taxpayer's residence (or business address for business entities) is more than 150 miles from the nearest Appeals Office.

    1. Area Directors have the discretion of reducing the number of miles based on their geographic reality or on a case-by-case basis.

  3. Allow circuit riding if the nearest Appeals Office cannot take the case due to high inventories or lack of technical skills, or if there is no convenient alternative.

  4. ATEs will circuit ride at least quarterly to meet the needs of each and every taxpayer.

  5. In the states where Appeals no longer has a presence, has a small presence, or may not have the technical expertise, the designated circuit riding location is shown below:

    State with No Appeals Presence Designated Circuit Riding Location
    Alaska Anchorage
    Arkansas Little Rock
    Idaho Boise
    Kansas Wichita
    Montana Helena
    North Dakota Fargo
    Rhode Island Providence
    South Dakota Aberdeen
    Vermont Burlington
    Wyoming Cheyenne

    Note:

    See IRM 8.6.1.4.5 , Virtual Service Delivery (VSD) for information on virtual face-to-face meetings.

8.6.1.4.2  (06-25-2015)
Change of Appeals Technical Employee (ATE) After Initial Contact

  1. Generally, a taxpayer does not have the right to a conference with an ATE other than the one assigned to his or her case. In Collection Due Process (CDP) cases, however, where the ATE has had prior involvement, the case must be reassigned. See IRM 8.22.5.4.1, No Prior Involvement.

  2. In cases where the prior involvement rule does not require transfer, the Appeals Team Manager or the Area Director of the Appeals Office may authorize a change in assignment where the circumstances warrant.

  3. The ATE will refer a taxpayer directly to the Appeals Team Manager to discuss (i) any concern raised by the taxpayer about the ATE, including the ATE's perceived impartiality and/or (ii) a request to have the case reassigned. The request will ordinarily be considered after the taxpayer has received the Uniform Acknowledgement Letter but before a conference/hearing is conducted. If the taxpayer requests that the case be transferred during the conference/hearing process, refer the request to the Appeals Team Manager.

  4. The Appeals Team Manager will evaluate the taxpayer's request and/or concerns and determine whether the case should be transferred to another ATE. The Appeals Team Manager shall communicate the decision directly to the taxpayer/representative.

8.6.1.4.3  (11-14-2013)
Right of Consultation with Representative

  1. If a case is in Appeals jurisdiction and a valid Form 2848, Power of Attorney and Declaration of Representative, is on file for the period(s) and the type of liability, contact the representative. When sending correspondence, send the original to the taxpayer and also send a copy of all correspondence to the representative. The ATE should document the Case Activity Record (CAR). See IRM 8.1.6.1.3, Representatives Qualified to Practice Before Appeals.

  2. IRC 7521(b)(2) requires an officer or employee of the Internal Revenue Service to stop the interview whenever a taxpayer wishes to consult with a representative qualified to represent the taxpayer before the Internal Revenue Service.

  3. A taxpayer's involvement with Appeals is voluntary, so the need to "bypass an authorized representative" should be highly unlikely. In those rare occasions where an ATE determines that it is appropriate to "bypass a representative", the employee should follow procedures shown in IRM 8.6.1.4.3.2, Bypass of a Representative.

8.6.1.4.3.1  (11-14-2013)
Taxpayer Consultation with Representative

  1. If a taxpayer indicates, during a conference, that he or she wishes to consult with a qualified representative or otherwise seek advice, the conference must be suspended. If necessary, the conference should then be rescheduled. The ATE will allow the taxpayer a reasonable amount of time to complete this right of consultation. The ATE should document the CAR accordingly.

8.6.1.4.3.2  (11-14-2013)
Bypass of a Representative

  1. Where a recognized representative has unreasonably delayed or hindered the appeal process by failing to furnish, after repeated requests, non-privileged information necessary for Appeals consideration, the ATE may request the permission of his/her immediate supervisor to contact the taxpayer directly for such information. With the supervisor's consent, the ATE may notify the taxpayer that he/she believes the representative is responsible for unreasonable delay or hindrance of the Appeals process. The ATE will document the CAR with sufficient facts to show how the appeal process was being delayed or hindered.

  2. The ATE will prepare a written notice of such permission, briefly stating the reason why it was granted. Such notice will be given to both the recognized representative and the taxpayer together with a request of the taxpayer to supply such non-privileged information. See IRC 7521(c) and the regulations thereunder.

  3. The authority for bypass procedures is found in Statement of Procedural Rules §601.506(b). A bypass permits an ATE to contact a taxpayer directly to request information necessary to complete Appeals consideration. The representative still continues to represent the taxpayer and is provided copies of all correspondence provided to the taxpayer.

  4. The ATE does not have the authority to bypass a "Counsel of Record" (COR), so these procedures don't apply in regards to a COR. See IRM 8.4.1.15.1, Attorney of Record in Docketed Cases, for detailed information about the COR.

8.6.1.4.4  (06-25-2015)
Participation in Conferences by IRS Employees

  1. If advisable, Appeals may request representatives of the Compliance, Area Director, engineering, or other experts to attend conferences.

  2. Generally, Area Counsel is not involved in Appeals conferences but may be present in cases where criminal prosecution has been recommended and the fraud penalty is contested.

  3. See other IRM Part 8 sections for participation by IRS employees in cases under the Alternative Dispute Resolution (ADR) Program. This includes IRM 8.26.5.4.7, Participants, that reflects Appeals' discretion to have Counsel, the originating function, or both to participate in a Post-Appeals Mediation proceeding for a Non-Collection Case.

8.6.1.4.5  (06-25-2015)
Virtual Service Delivery (VSD)

  1. Virtual Service Delivery (VSD) employs teleconferencing technology that permits parties to conduct virtual face-to-face meetings from remote locations. VSD technology is installed in a number of IRS locations known as VSD “support” sites, including all six Appeals Campus locations, which Campus ATEs can use to conduct VSD teleconferences. VSD technology is also installed in a number of “customer-facing” sites, where taxpayers and representatives can go to conduct VSD teleconferences. Customer-facing VSD sites include:

    1. Some IRS posts of duty,

    2. Partner sites, and

    3. Two Low Income Taxpayer Clinics (LITCs), for taxpayers represented by these LITCs.

  2. Campus ATEs will offer a taxpayer or representative who requests a face-to-face conference the option of a VSD teleconference, when the taxpayer is located within 100 miles of a customer-facing VSD site.

  3. Campus ATEs will follow these procedures on cases where a taxpayer or representative requests a face-to-face conference:

    Step Action
    1. Offer a VSD teleconference when the following conditions are met:
    1. The ATE is co-located with VSD equipment

    2. The taxpayer or representative is located within 100 miles of a VSD customer-facing location, (see Exhibit 8.6.1-1)

    3. The taxpayer is not raising frivolous issues listed in Notice 2010-33 (or its successor notice), and

    4. The taxpayer is not raising frivolous issues reflecting a desire to delay or impede the administration of Federal Tax Laws for a CDP hearing request.

    Exception:

    CDP taxpayers can have a VSD teleconference even if they don't meet the requirements in IRM 8.22.5, Collection Due Process, Receipt, Control, and Pre-Conference Considerations, for a face-to-face hearing. If the CDP taxpayer declines the VSD offer, then they must meet the qualification requirements for a face-to-face hearing when they are only proposing a collection alternative or only wish to discuss currently not collectible (CNC).

    2. If the taxpayer or representative is not located within 100 miles of a VSD customer-facing location:
    1. Document that finding in the Case Activity Record (CAR)

    2. Proceed to Step 3.c below.

    Note:

    If he/she believes the taxpayer resides between 100-150 miles of a VSD customer-facing location, the Campus ATE (at his/her sole discretion) has the option of informing the taxpayer or representative of the VSD program and the nearest VSD location. In the event the taxpayer or representative expresses willingness to travel to that VSD location (even though it is beyond the 100 miles outlined above), the Campus ATE should proceed to Step 4 below.

    3. If the taxpayer declines the opportunity for a VSD teleconference:
    1. Document the taxpayer’s decision in the Case Activity Record (CAR),

    2. Input code “VSDX” in the LOC7 field,

    3. Explain the time delay likely to occur if the case is transferred, and then:

      • If the taxpayer still requests a face-to-face conference (and, in a CDP case, qualifies for a face-to-face conference), then transfer the case to the field (per existing IRM provisions). Skip Steps 4 thru 8 below.

      • If the taxpayer no longer requests a face-to-face conference, then continue to work the case according to established procedures for cases not in the VSD program. Skip Steps 4 thru 8 below.

    4. If the taxpayer accepts the opportunity for a VSD teleconference, the ATE and taxpayer will schedule an agreed-upon date and time (keeping in mind the impact of different time zones on both parties). The ATE will:
    1. Document the taxpayer’s decision in the Case Activity Record (CAR),

    2. Input code “VSDA” in the LOC7 field,

    3. Reserve the VSD equipment at his/her location for the agreed-upon date and time, using local procedures, and

    4. Reserve the customer-facing equipment for the agreed-upon date and time using the Outlook Reservation System. (Does not apply to LITC cases).

    Note:

    In scheduling the amount of time for the VSD conference to take place, consider scheduling some additional time to account for the taxpayer’s unfamiliarity with the location and/or equipment.

    5. Provide the following information to the taxpayers:
    1. Address and room number of the customer-facing equipment (Does not apply to LITC cases),

    2. Any local contact information the taxpayer will need at the site to gain access to the equipment or instructions for its use (Does not apply to LITC cases), and

    3. Instructions on how to make last minute contact with the ATE if the taxpayer will be late or the taxpayer encounters difficulties with access or use of the VSD equipment.

    6. Advise the taxpayer to submit copies of relevant documents to the ATE (by mail or FAX) at least 10 business days in advance of the scheduled conference.

    Note:

    While new information may be visually presented to the ATE at the conference, it is recognized that ATEs need time to review and consider such information before making final decisions that affect the resolution of a case. As such, expectations a taxpayer or representative may have for immediate decisions in such situations are unwarranted.


    Note:

    Refer to IRM 8.6.1.6.4, Taxpayer Raises New Issue, for situations where a taxpayer raises a new issue and IRM 8.6.1.6.5, Taxpayer Provides New Information, when a taxpayer provides new information.

    7. If the conference is delayed or canceled due to technical problems, the ATE will document the reason for the delay or cancellation in the CAR, and either:
    1. Reschedule an additional virtual conference if the taxpayer requests it,

    2. Reschedule a telephone conference, or

    3. Transfer the case for an actual face-to-face conference if the taxpayer insists.

    8. ATEs may take their laptop computers with them as they conduct VSD conferences to avail themselves of the use of the laptops in the same manner they are used during phone conferences and daily work. The VSD equipment in the support site offices is located near a network connection.

    Note:

    After agreeing to participate in the VSD process, if at any point, the taxpayer changes his/her mind and no longer wants a VSD teleconference, the ATE will delete code “VSDA” in the LOC7 field, replace it with code “VSDW” and take the actions outlined in Step 3.c above.

  4. Taxpayers represented by LITCs must meet the following eligibility requirements in order to participate in VSD.

    1. Seek and receive representation from an LITC with VSD technology installed.

    2. Request a face-to-face conference and agree to participate in VSD. Taxpayers represented by such a clinic and/or the LITC representative are responsible for notifying the ATE of their desire and eligibility to conduct a VSD conference.


    Upon confirmation that the VSD eligibility requirements have been met, the ATE will follow the procedures specifically outlined in Steps 4.a, 4.b., 4.c., 5.c., 6, 7, and 8 of section (3) above.

    Note:

    Prohibition Against Recommending Representation - IRS personnel are prohibited from making recommendations to taxpayers with respect to securing assistance from any specific individual, firm, or group, including LITCs. Do not recommend that the taxpayer seek assistance from any one specific LITC. The taxpayer can obtain information about LITCs in Pub 4134, Low Income Taxpayer Clinic List.

  5. Additional information is available on the VSD SharePoint site to further assist the ATEs with their VSD responsibilities. Visit Appeals Campus Operations Virtual Service Delivery Employee Resources on Appeals' Campus Operations Share Point site for detailed instructions.

8.6.1.5  (11-14-2013)
Audio and Stenographic Recording of Conferences

  1. Audio and stenographic recordings are allowed on Appeals cases scheduled for face-to-face conferences. Taxpayers and their authorized representatives who request such recordings are advised their request may be allowed, if they qualify for a face-to-face conference, pursuant to the following procedures.

  2. Face-to-face conferences are no longer offered to, or allowed for, taxpayers who only raise frivolous issues and/or arguments, or other issues such as those concerning moral, constitutional, religious, conscientious, political, or similar grounds.

  3. In addition, taxpayers with issues deemed frivolous, who still desire a face-to-face conference, are allowed an opportunity to raise specific relevant issues in response to the Appeals letter advising them they do not qualify for a face-to-face conference.

    Note:

    Taxpayers who say they have relevant issues must state what the issues are and must provide necessary information before a face-to-face meeting is scheduled.

  4. Taxpayers who raise specific relevant issues and provide necessary information are allowed a face-to-face conference and are allowed to audio record such conference if a request to record is made pursuant to IRC 7521(a), Recording Interviews.

  5. This section applies only to face-to-face conferences, and not telephone conferences.

8.6.1.5.1  (11-06-2007)
Raising Frivolous Issues During a Face-to-Face Conference

  1. Some taxpayers, who initially raised frivolous issues, then raise specific relevant issues and are given a face-to-face recorded conference, try to discuss frivolous issues during the recorded conference.

  2. Attempt to discuss the specific relevant issues. However, if it becomes apparent the taxpayer can no longer be persuaded to discuss only relevant issues, terminate the conference.

  3. IRC 7521(a) authorizes both taxpayers and the IRS to audio record in-person interviews dealing with the determination or collection of taxes. These in-person interviews are initiated by the IRS for the purpose of gathering information regarding a taxpayer's tax liability, income or assets.

  4. Unlike interviews with Collection and Examination, conferences with Appeals are new hearings requested by the taxpayer, where the taxpayer raises issues for consideration. On that basis, IRC 7521(b)(1) does not apply to Appeals.

8.6.1.5.2  (06-25-2015)
Recording Requirements

  1. IRC 7521, which was part of the Taxpayer Bill of Rights 1 (TBOR1), provides for audio recordings. Notice 89-51, 1989-1 C.B. 691 contains guidance for allowing the taxpayer to audio record any in-person interview relating to the determination or collection of any tax as long as there is a 10-day advance notification.

    Note:

    Notice 89-51, 1989-1 C.B. 691 cites IRC 7520 as the provision for procedures involving taxpayer interviews. In 1989, this code section was redesignated as IRC 7521, Procedures Involving Taxpayer Interviews.

  2. Although the IRS previously determined the provision was not mandatory for Appeals because Appeals conferences are not taxpayer "interviews" , the Tax Court found that under IRC 7521 a taxpayer must be permitted to make an audio record of a IRC 6330 hearing. See Keene v. Commissioner 121 T.C. 8 (2003).

  3. Follow the provisions in Notice 89-51, 1989-1 C.B. 691, or its successor, when allowing recordings in cases within Appeals jurisdiction. Audio recordings are allowed on all types of cases that have face-to-face conferences on issues that are not deemed frivolous. In these cases, the taxpayer must follow the requirements of IRC 7521. They must give ten (10) days advance notice of their intent to audio record, and provide their own recording equipment. Appeals also makes an audio recording of the conference with IRS equipment.

  4. Allow stenographic recordings by court reporters if all the following conditions are met:

    • the court reporters have the credentials listed below;

    • the taxpayer qualifies for a face-to-face conference; and

    • the taxpayer has given a 10-day advance notice.

  5. The stenographer must have one of the following credentials to be allowed to make a stenographic recording in Appeals.

    1. Court reporter of the United States District Court.

    2. An independent reporter qualified to take depositions for use in United States District Court.

    3. Licensed or certified by any state to be a court reporter or to take depositions.

  6. Appeals audio records any conference stenographically recorded by the taxpayer and requests a copy of the stenographer’s record. If Appeals determines the costs of obtaining the stenographic record are too high, a copy of the record is not secured.

  7. The Appeals webpage contains helpful information on audio conference procedures, including how to identify yourself and participants on the recording. Also, see IRM 8.6.1.5.3, Procedures for Audio Recordings.

  8. Video recordings are not allowed.

  9. Procedures in Notice 89-51, 1989-1 C.B. 691 require ten (10) calendar days advance notice before a conference is recorded. If the taxpayer does not give the required ten-day notice, Appeals may, using its discretion and availability of IRS recording equipment, conduct the conference as scheduled, or set a new date.

  10. Inform the Appeals Team Manager (ATM) about these recording situations. Two Appeals employees must be present at recordings where frivolous/constitutional, et al., arguments have previously been presented.

8.6.1.5.3  (11-06-2007)
Procedures for Audio Recordings

  1. At the outset of the recording, the ATE conducting the conference identifies himself or herself and states the following information:

    • date

    • time

    • place

    • name of case

    • purpose of the proceeding

  2. All participants, including the ATE, must personally identify themselves and consent to the making of an audio recording. If an additional participant arrives or a participant leaves, verbally state this on the tape.

  3. When written records are presented or discussed during the proceeding, describe them in sufficient detail to permit identification when compared to other documents in the case file. If more than one tape is necessary to record the conference, each subsequent tape must be identified by giving the case name and date.

  4. State on the tape when the conference or recording session ends. Retain Appeals tapes in the case file.

  5. Process any payments or costs for copies of Appeals tapes given to taxpayers, per the provisions of Notice 89-51, 1989-1 C.B. 691.

8.6.1.6  (11-14-2013)
New Issues and Reopening Closed Issues

  1. Policy Statement 8–2 (formerly P-8-49) states that Appeals will not raise new issues and will not reopen an issue on which the taxpayer and the Service are in agreement. See IRM 1.2.17.1.2.

    Note:

    Although Appeals will not raise new issues, Appeals hearing officers will notify their ATMs if they identify a new systemic issue. ATMs will report the identification of new systemic issues to their Area Directors, who, in consultation with the Director, Field Operations, Campus Operations or Specialty Operations will decide if the new systemic issue requires Compliance’s attention. If a systemic issue may be present, Appeals will notify the appropriate Compliance executives and personnel. The Appeals hearing officer will not raise a new issue in the disposition of the pending case except upon a showing of fraud or malfeasance, or misrepresentation of a material fact.

    Note:

    A systemic issue is an issue that requires a change or modification to an established procedure, process or operation (e.g., training issues, computer program, campus procedure for processing claims). These are issues that potentially impact more than one taxpayer.

  2. Policy Statement 8–3 (formerly P-8-50) states the policy of the IRS concerning the reopening of cases previously closed by Appeals. Mutual concession cases will not be reopened based on action initiated by the Service except when the disposition involved fraud, malfeasance, concealment or misrepresentation of a material fact, an important mistake in mathematical calculation or discovery that a return contains unreported income, unadjusted deductions, credits, gains, losses, etc., resulting from the taxpayer's participation in a listed transaction. Reopening the case requires the approval of the Appeals Director with oversight of the case, either, Field Operations, Campus Operations, or Specialty Operations. See IRM 1.2.17.1.3. The following explains references contained within this Policy Statement:

    1. Reference to a case closed on a basis of concessions made by both Appeals and the taxpayer, means a non-docketed case closed by a Form 870-AD or closing agreement.

    2. Reference to a case closed on a basis not involving concessions made by both Appeals and the taxpayer, means a non-docketed case closed by other than a Form 870-AD type of agreement. For example: A case closed by Form 870 or similar form, or closed by reason of failure of the taxpayer to file a timely petition with the United States Tax Court following issuance of a statutory notice of deficiency by Appeals, or an excise or employment tax case closed without agreement as to the assessment.

    3. Reference to a serious administrative omission regarding non-mutual concession cases includes criticism of an issue by the Joint Committee.

      Note:

      Appeals will not reopen a case (whether initiated by the taxpayer or the Service), if the case was closed with finality. See IRM 8.7.7.12, Audit Reconsideration Cases.

  3. Under Policy Statement 8-3, no approval is required to reopen previously closed cases in the following situations:

    • To allow carrybacks provided by law which were not taken into account in a prior closing.

    • To assess an excessive portion of a tentative allowance.

    • To adjust matters previously reserved by the government or by the taxpayer in an agreement. See IRM 8.6.4, Reaching Settlement and Securing an Appeals Agreement Form.

  4. See IRM 8.7.7, Claim and Overassessment Cases, for procedures in cases where the taxpayer files a claim for refund in a case previously closed by Appeals.

8.6.1.6.1  (06-25-2015)
Defining a New Issue

  1. The restrictions on raising a new issue (Policy Statement 8–2) or reopening a closed case (Policy Statement 8-3) do not apply to new issues:

    1. Raised by taxpayers, or

    2. Recommended by Counsel to be raised on behalf of the Commissioner in the course of review for the issuance of a statutory notice of deficiency.

    Note:

    Reopening a previously agreed issue or raising a new issue has the same implications, and is, for all practical purposes, one and the same. Therefore, for purposes of this section, treat reopening an agreed issue the same as raising a new issue.

  2. A new issue is a matter not raised during Compliance's consideration.

  3. A new theory or alternative argument is not a new issue. See IRM 8.6.1.6.2(3), General Guidelines.

    Note:

    A change in computation is not a new issue.

8.6.1.6.2  (11-14-2013)
General Guidelines

  1. Appeals will not raise new issues and will focus dispute resolution efforts on resolving the points of disagreement identified by the parties. The Appeals process is not a continuation or an extension of the examination process.

  2. Appeals will attempt to settle a case on factual hazards when the case submitted by Compliance is not fully developed and the taxpayer has presented no new information or evidence.

  3. In resolving disputes, Appeals may consider new theories and/or alternative legal arguments that support the parties' positions when evaluating the hazards of litigation in a case. However, the Appeals hearing officer will not develop evidence that is not in the case file to support the new theory or argument.

  4. The discussion of new or additional cases (or other authorities, e.g., revenue rulings or revenue procedures) that supports a theory or argument previously presented does not constitute consideration of a new issue.

  5. In docketed cases, the Appeals hearing officer will consider a new issue affirmatively raised by the government in pleadings and may consider any new evidence developed by Compliance or Counsel to support the government's position on the new issue. The Appeals hearing officer’s consideration of a new issue in a docketed case will take into account that the government has the burden of proof. See IRM 8.4.1.15.3, New Issues in Docketed Cases.

8.6.1.6.3  (11-14-2013)
Burden of Proof when Government Raises New Issues

  1. The burden of proof is on the government when it raises a new (affirmative) issue in a docketed case.

8.6.1.6.4  (06-25-2015)
Taxpayer Raises New Issue

  1. Appeals gives full, fair, and impartial consideration to the merits of each new issue a taxpayer raises once the originating function has had an opportunity to examine the issue.

  2. If the taxpayer raises a relevant new issue and there will be less than 210 days remaining on the statute of limitations when the originating function receives the case, solicit a consent to extend the statute of limitations. If the taxpayer will not sign a consent, follow the procedures in IRM 8.21.3.1.3.1 , Protecting statutes, General Guidelines, to protect the statute.

    Note:

    When soliciting a consent, ensure there is sufficient time remaining on the statute of limitations for Examination to complete its actions on the new issue and potentially return the case to Appeals.

  3. If the taxpayer raises a new issue and there will be at least 210 days remaining on the statute of limitations when the originating function receives the case, follow the procedures in IRM 8.6.1.6.7 , Jurisdiction Released, to return the case.

  4. For LB&I source cases, see IRM 8.7.11.5.3Returning a Case to LB&I.

  5. If a taxpayer repeatedly raises a new issue as a delay tactic, refer to IRM 8.6.1.6.5, Taxpayer Provides New Information.

  6. For estate cases, see IRM 8.7.4.2, Estate Cases Worked in Appeals.

8.6.1.6.5  (06-25-2015)
Taxpayer Provides New Information

  1. New information or new evidence is any item or document related to a disputed issue that the taxpayer did not previously share with the examiner, and in the judgment of the Appeals hearing officer, merits additional analysis or investigative action by Examination.

    1. Additional analysis means categorizing, sorting, or reviewing large volumes of records, or requiring additional steps or reasoning to reach a conclusion.

    2. Investigative action means actions required for fact finding, to make inquiries or to verify the authenticity of an item.


    Note:

    If a taxpayer provides information in response to a question or request from Appeals to clarify or corroborate information contained or referenced in the examination report, Protest or Rebuttal, such information will not be provided to Compliance for review and comment, unless subject to the provisions of IRM 8.7.11.5.3(2) for returning a case to LB&I.


    Exception:

    In Collection Due Process (CDP) cases where there is an underlying liability, until further notice, follow the procedures in IRM 8.22.8.5.1, Referring a Liability Issue. Under IRC 6330(d)(2), Appeals must retain jurisdiction of these cases; therefore, jurisdiction can’t be released.

  2. If the case is IRS Campus-sourced (including claims, PENAPs, International penalties, and International Individual Compliance (IIC) - Tax Examiner cases as identified on Form 3198), determine if it meets the exception after receiving all new information. If the case meets the exception, review the new information and proceed with normal consideration. If the case does not meet the exception, go on to paragraph (3).
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Add Feature Code "NI" (New Information) to Campus-sourced cases where the taxpayer provides new information and the case meets the exception in (2) and Appeals will retain jurisdiction.

  3. If the taxpayer provides new information or evidence and there will be less than 210 days remaining on the statute of limitations when the originating function receives the case, solicit a consent to extend the statute of limitations. If the taxpayer will not sign a consent, inform the taxpayer that you cannot consider the new information because the originating function has not had an opportunity to review it. Proceed with normal consideration of the case. If you cannot reach settlement, follow the procedures in IRM 8.21.3.1.3.1, Protecting Statutes, General Guidelines, to protect the statute.

    Note:

    When soliciting a consent, ensure there is sufficient time remaining on the statute of limitations for Examination to complete its actions on the new information provided by the taxpayer and potentially return the case to Appeals.

  4. If the taxpayer provides new information or new evidence and there will be at least 210 days remaining on the statute of limitations when the originating function will receive the case, consider the following conditions before releasing jurisdiction:

    If Then
    1. The evidence is relevant to the proposed deficiency; and

    2. The evidence is not already in or referenced in the case file; and

    3. The evidence requires investigative action or additional analysis.

    If ALL conditions are met, release jurisdiction and return the case to the originating function. See IRM 8.6.1.6.7, Jurisdiction Released.
    If any condition is NOT met, proceed with normal consideration.

    Note:

    Where a taxpayer or recognized representative unreasonably delays the process by intentionally submitting new information or raising new issues multiple times to impede the process, after obtaining approval from the ATM, the Appeals hearing officer will notify the taxpayer or representative that the case will not be returned to the originating office for consideration of the new information or new issues and will make the determination based on factual hazards. The Appeals hearing officer will document the Case Activity Record (CAR) accordingly.

  5. For information received in LB&I sourced cases, see IRM 8.7.11.5.3, Returning a Case to LB&I.

  6. Primary Business Code (PBC) 315, (IIC) field (Revenue Agent and Tax Compliance Officer) cases, should be worked following the procedures and guidelines outlined in this section.

8.6.1.6.6  (06-25-2015)
Taxpayer Raises New Theory or Alternative Legal Argument

  1. If the taxpayer raises a relevant new theory or alternative legal argument and the case is an SB/SE field, office examination, or an LB&I case, follow these steps:

    Step Action
    1. Return the information package to the original exam group.
    2. Prepare an INTERIM customized Form 5402 using ACDS APGolf. Include the following information:
    1. JURISDICTION RETAINED

    2. Reason for sending information (i.e., Taxpayer is raising a new theory or alternative legal argument.)

    3. IRS Examination Group address

      Note:

      If Form 5402 requires a closing code, use Closing Code 00 – Not Applicable. Do not close the case on ACDS. This is not a closing action.

    3. Update the following in CARATS:
    • Action: SU

    • Subaction: PI

    • Suspense Action Reason Code: E/DD – Inactive, waiting for info/action by DD

    • Feature Code: EA – Examination Assistance Case

      Note:

      If there are other issues that you can continue working, there is no need to put the case in suspense.




    4. Prepare Letter 5209 to the taxpayer. Sign it but do not date or mail it. Include a copy for the file and representative, if any, and envelope(s) for mailing. Letter 5209 advises the taxpayer that you are sending their new theory or argument to the original exam group to assign to an examiner for review and comment and retaining jurisdiction of their case.
    5. Submit the case to the ATM for approval. If approved, the ATM will mail the letters and forward the information package to the original Examination Group.
  2. For LB&I sourced cases, also see IRM 8.7.11.5.3 , Returning a Case to LB&I

  3. The ATM will send the information package along with all supporting information to Exam, allowing at least 45 days for written review and comment (subject to ex parte requirements) and granting an extension of time, if mutually agreed.

    Exception:

    In Collection Due Process (CDP) cases where there is an underlying liability, UNTIL FURTHER NOTICE, follow the procedures in IRM 8.22.8.5.1, Referring a Liability Issue. Under IRC 6330(d)(2), Appeals has to retain jurisdiction of these cases; therefore jurisdiction can’t be released.

8.6.1.6.7  (06-25-2015)
Jurisdiction Released

  1. Follow these procedures to release jurisdiction and return a case to the originating function:

    Step Action
    1. Determine where to send the case:
    1. SB/SE field and office examination sourced cases and LB&I cases – return case to the Examination Technical Services location that serves the originating Exam group.

      IRS Technical Services
      [Address]
      http://mysbse.web.irs.gov/AboutSBSE/Exam/ts/contact/14354.aspx

    2. For all other cases - refer to the Case Routing tab on the Appeals Home Page at http://appeals.web.irs.gov/APS/caserouting.htm.

    2. Prepare a customized Form 5402 using ACDS APGolf.
    1. Include the following information:

      JURISDICTION RELEASED
      [Reason for releasing jurisdiction (i.e., Taxpayer provided new information, Taxpayer raised a new issue, etc.)]

      Return case to [Originating function’s address (i.e., Technical Services, IRS Campus, etc.)]

    2. Use Closing Code 20.

    3. Prepare Letter 5209 to the taxpayer. Sign it but do not date or mail it. Include a copy for the file and representative, if any, and envelope(s) for mailing by APS. Letter 5209 advises the taxpayer that you are returning the case to the originating function and the reason, i.e., because they raised a new issue, submitted new information, etc., and releasing jurisdiction of their case.
    4. Submit the case to the ATM for approval and processing. The ATM approves the case closure, closes the case on the ATM Case closing screen, and gives it to APS. APS closes the case on ACDS, mails Letter 5209 , and returns the entire administrative file to the originating function using Form 3210.
  2. For LB&I sourced cases, also see IRM 8.7.11.5.3, Returning a Case to LB&I.

Exhibit 8.6.1-1 
Virtual Service Delivery (VSD) Locations

For virtual face-to-face interactions, Campus ATEs will access VSD equipment located in one of the six (6) Campus Appeals offices (i.e. "support sites" ), while the taxpayers and/or their representatives will access VSD equipment located in one of the "customer-facing" VSD sites. For Low-Income Tax Clinic (LITC) cases, special procedures apply. Visit Appeals Campus Operations Virtual Service Delivery Employee Resources on Appeals' Campus Operations Share Point site for detailed instructions.

Support Sites

Appeals Support Sites Location
Brookhaven Campus Holtsville, New York
Philadelphia Campus Philadelphia, Pennsylvania
Florence Campus Florence, Kentucky
Memphis Campus Memphis, Tennessee
Ogden Campus Ogden, Utah
Fresno Campus Fresno, California

Customer-Facing Sites

Location Type Address
IRS 949 E. 36th Avenue - Anchorage, Alaska 99508
IRS 550 West Fort Street - Boise, Idaho 83724
IRS 700 E. San Antonio - El Paso, Texas 79901
Partner 7 N. 31st Street, Billings - Montana 59101
IRS 10 W. 15th Street, Helena - Montana 59626
IRS 700 W. Capital, Little Rock - Arkansas 72201
IRS 51 S.W. First Avenue - Miami, Florida 33130
IRS 7180 9th Ave. North, Pensacola - Florida 32504
Partner 721 N. Cincinnati Street, Spokane - Washington 99202
LITC Oakridge, Tennessee
LITC Seattle, Washington

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