IRS Logo
Print - Click this link to Print this page

Railroad Industry Overview Series - Introduction - October 2007

LMSB Control Number: LMSB-04-1007-072
Affected IRM: X.XX.X

This document is not an official pronouncement of the law or the position of the Service and cannot be used, or cited or relied upon as such.

I. Introduction

A.  Purpose of Industry Overview

This overview is designed to provide industry-related information to all Large Business and International (LB&I) Division.  This is the first step in the effort of LB&I to develop a greater level of expertise in the industry or industries to which you will be assigned.  This overview is one of a series of industry specific overviews.  See the Appendix for a complete listing of available overviews.

B.  Use of the Intranet and Internet

It is anticipated that an industry web page will be established on the LB&I Intranet site that will contain detailed information involving each industry.  The topics included in this overview will be expanded upon and others will be included.  For example, an up-to-date economic analysis of the industry, current and future trends, and links to many other industry related web sites that can assist you in gaining the needed level of understanding of your industry will be included.    

C.  General History of Industry Specialization Program (ISP)





The Service was restructured in 1952 into a highly decentralized organization consisting of seven regions and 58 districts.  This reorganization was implemented in part to achieve greater sensitivity and responsiveness to pubic needs.  District Directors were given wide latitude and authority in administering the Service's policies, procedures and programs.  While decentralization of the Service proved to be a progressive action, communication between the regions and districts was made more difficult because of their quasi‑autonomy.  Positions taken by the Service on industry issues could differ significantly from one region to another on the same issues.


The Service implemented the Industry Wide Examination Program to concurrently examine the major taxpayers in a given industry, coordinate selected issues common to that industry and to resolve those issues uniformly and consistently among all the industry taxpayers.  Under the direction of project coordinators (usually large case branch chiefs), the industry wide examinations were largely successful in achieving uniform and consistent treatment of issues.  Industry wide examinations were conducted in several industries between 1971 and 1979 and the ability to communicate freely across district and regional lines proved to be invaluable to the success of these examinations.


The Industry wide Examination Program had one major drawback.  Since they existed for only two or three tax years and were then terminated, the program failed to provide continuity.  To correct this situation, a major study group was created in 1977 to review the Service's Coordinated Examination Program.  The study recommended that permanent positions be established for several Industry Specialists and a National Industry Coordinator.  In addition, the study group identified basic industries to which it recommended specialists be assigned.  The duties and responsibilities of the Specialists and the Coordinator were to be much broader than the former Project Coordinators whom they replaced.


The recommendations of the study group were implemented greatly expanding the scope and depth of the Industry wide Examination Program.  The term, Industry Specialization Program, eventually evolved as a name that could encompass the varied concepts of Industry Specialists, National Industry Coordinator, Coordinated Issues, and the many refinements suggested by the study group.

D.  History of Ground Transportation ISP




Railroad Industry Specialization Program began with first ISP, John Koetting a Case Manger in St. Louis selected for the position.  John continued to manage two railroad cases during his tenure, which lasted through 1986.


Upon John's retirement, the manager of PSP in St. Louis, Gary Kuper, was selected as ISP.  Shortly thereafter, the National ISP program initiated an expansion to assign a designated district counsel and appeals ISP coordinator for each program.  Bob Fowler of Kansas City District Counsel and Jay Wyatt of St. Louis Appeals were assigned to the railroad program.


National Office authorized the railroad ISP to conduct a study of the trucking industry to determine whether an ISP program for that industry was warranted.


Upon completion of the study, approximately 30 potential issues had been identified and an Assistant ISP position was created within the Railroad program.  The program was renamed as the Ground Transportation Industry, and Larry Akins, a revenue agent in St. Louis, was selected as Assistant ISP.


ISP Gary Kuper retired, Larry Akins, PSP manager, was appointed Acting ISP and Denise Thompson, a revenue agent from St. Louis, was detailed to the Assistant position.


B. Wayne VanDyck, of Roanoke, Virginia, former Sr. Team Coordinator with ten years experience in the railroad industry, was selected as the ISP.  The Assistant ISP position was left vacant and never again filled.


Debbie Carney, an Appeals Officer in St. Louis, was selected as the new Appeals Coordinator.


Robin Herrell replaced Bob Fowler as Ground Transportation Counsel.


Jean S. Yang replaced Debbie Carney as Appeals Coordinator.


B. Wayne VanDyck  retired and Dennis Scobie, a team coordinator with extensive railroad experience, became the technical advisor.


Gary Shuler replaced Robin Harrell as Ground Transportation Counsel


Dennis Scobie retires and Dan Longhi acts as technical advisor (TA) pending the hiring of a new TA

E. Industry Specialist Staffing (Technical Advisors in LB&I)

Name of Specialist


Dan Longhi, Acting Railroad Industry TA   

Jacksonville, FL      

F.  LB&I Industry Staffing

The Industry Specialist is assigned to the Pre-Filing and Technical Guidance Division that is a part of LB&I Headquarters.  Each industry is assigned to one of the five Industry Functional Divisions.  Industry Specialists will be known as technical advisors in LB&I and will be supervised by a Manager, Technical Advisors.  Information relative to the management in the Industry Division that this industry is assigned (Heavy Manufacturing and Transportation, HMT) as well as the Manager: of the Technical Advisor(s) of this industry is as follows:




Laura M. Prendergast

Industry Director HMT

Iselin, NJ

Rosemary E. Daley

Field Operations Director

Downers Grove, IL

Catherine L. Jones

Field Operations Director

Iselin, NJ

Dorothy Livaudais

Manager, Technical Advisors

Paterson, NJ

G.  Description of the Railroad Industry

Includes all taxpayers engaged in the business of providing transportation of freight by either train with special emphasis on the Class I railroads.  Also includes examination issues that arise under the Railroad Retirement Tax Act, with the ISP acting as a liaison to the Chief of Audit of the Railroad Retirement Board.

Table of Contents | Chapter 2

Page Last Reviewed or Updated: 05-Mar-2015