An Action on Decision (AOD) is a formal memorandum prepared by the IRS Office of Chief Counsel that announces the future litigation position the IRS will take with regard to the court decision addressed by the AOD.

The following list initially presents these documents in reverse chronological order, from the present back to calendar year 1997.

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Number Decision Issue Release Date
2007-03 Snider v. U.S.; Turley v. U.S., 468 F.3d 500 (8th Cir. 2006). Issues relating to a special agent's disclosure of the identity of a taxpayer under investigation to a third-party witness. RELEASE DATE: July 25, 2007 07/23/2007
2007-02 Moore v. Comm., T.C. Memo. 2006-171, T.C. Dock. #11634-05L. Whether prohibited ex parte communications during a collection due process hearing before the Office of Appeals may be remedied by sharing the content of the communications with the taxpayer and allowing the taxpayer an opportunity to respond. RELEASE DATE: February 27, 2007 02/27/2007
2007-01 North Dakota State Univ. v. U.S., 255 F.3d 599 (8th Cir. 2001). This AOD addresses whether early retirement payments that the taxpayer made to tenured faculty members are wages subject to Federal Insurance Contributions Act ("FICA") taxes. RELEASE DATE: January 18, 2006 01/18/2007
2006-02 Pacific Gas and Electric Company v. U.S., 417 F.3d 1375. Whether the statute of limitations barred the Service from recovering erroneously paid overpayment interest by offsetting against a subsequent refund of tax and interest determined to be due to the taxpayer for the same taxable year. RELEASE DATE: June 26, 2006 10/26/2006
2006-01 Erickson Post Acquisition, Inc. v. Comm., T.C. Memo. 2003-218. Whether the cash payment from the wholesaler to the retailer was a taxable advance payment or a nontaxable loan. RELEASE DATE: June 12, 2006 06/12/2006
2005-03 Montgomery v. Comm., 122 T.C. 1 (2004). This Action on Decision reflects the Service's acquiescence as to the Tax Court's rejection of the Service's interpretation of "underlying tax liability" and concluding that the term "underlying tax liability" encompasses the amounts the Service assessed for a particular tax period, including amounts assessed as deficiencies, amounts "self-assessed" under I.R.C. Section 6201(a) or a combination of such amounts.

RELEASE DATE: December 15, 2006 		12/15/2006
2005-02 Sherwin-Williams v. Comm., 330 F.3rd 449 (6th Cir. 2003). This Action on Decision reflects the Service’s nonacquiescence as to whether the Court of Appeals erred in ruling that income, including investment income, used to pay the costs of administration is eligible for treatment as a set-aside under the statute. RELEASE DATE: September 12, 2005. 09/12/2005
2005-01 Estate of Mitchell v. Comm., 250 F.3d 696 (9th Cir. 2001). This Action on Decision reflects the Service's nonacquiescence as to whether the Court of Appeals erred in shifting the burden of proving the valuation of stock to the Commissioner on the basis that the Commissioner’s determination of the value of the stock was arbitrary and excessive. RELEASE DATE: 06/03/2005 06/03/2005
2004-06 IRS v. Donald Snyder, 343 F.3d 1171 (9th Cir. 2003). Whether the value of a debtor's interest in a pension plan that is excluded from the bankruptcy estate under Bankruptcy Code Section 541(c)(2) should be included in the value of the Service's secured claim under Bankruptcy Code Section 506(a). RELEASE DATE: 10/18/2004. 10/18/2004
2004-05 Diane Fernandez v. Comm., 114 T. C. 324 (2000) Docket No. 16710-99. This Action of Decision reflects the Service's acquiescence in results only as to whether the Tax Court has jurisdiction, under I. R. C. Sec. 6015(e) in a case involving an understatement of tax, to review the Service's determination to deny relief under Sec. 6015(f). RELEASE DATE: 08/30/2004. 08/30/2004
2004-04 Kaffenberger v. U.S., 314 F.3d 944 (8th Cir. 2003. Whether the Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, constitutes an informal claim for refund, and whether the 2-year period of limitations, set forth in I.R.C. Sec. 6532(a)(1), for bringing a refund suit can be extended once the 2-year period has expired. RELEASE DATE: 08/30/2004. 08/31/2004
2004-03 U.S. v. Roland Harry Macher (In re Macher), 91 AFTR2d 2003-2654. This Action of Decision reflects the Service’s nonacquiescence as to whether a bankruptcy court has the authority to order the United States to process and consider a debtor’s plan of reorganization in accordance with procedures applicable to offers in compromise submitted by taxpayers who are not currently in bankruptcy. 08/03/2004
2004-02 Tax Analysts v. IRS, 215 F. Supp.2d 192, reversed, 350 F.3d 100. This Action on Decision reflects the Service's acquiescence in result only as to whether letter rulings issued by the Service that deny or revoke an organization's tax exempt status are subject to public inspection under I.R.C. Sec. 6110. 07/02/2004
2004-01 Sidney L. Olson and Miriam K. Olson v. Comm. 48 T.C. 855. 2. This Action on Decision reflects the Service's withdrawal of its acquiescence as to whether the distribution of the stock of a controlled corporation by a distributing corporation to the shareholders of the distributing corporation to prevent the potential union of the distributing corporation from claiming that the distributing and controlled corporations constitute a single employer for labor law purposes qualifies as a valid corporate business purpose under § 1.355-2(b) of the Income Tax Regulations. This Revised Action on Decision does not affect the Service’s acquiescence regarding issue (2) of the original Action on Decision. 01/22/2004
2003-04 General Electric Co. & Subs. v. Commissioner, T.C. Memo. 1995-306. The Action on Decision reflects the Service's acquiescence in result only as to whether aircraft engines and thrust reversers sold by the taxpayer through its wholly-owned domestic international sales corporation ("DISC") to airframe manufacturers for incorporation in the United States into aircraft that are delivered for use outside the United States constitute "export property" within the meaning of section 993(c)(1)(B) of the Internal Revenue Code and Treas. Reg. Section 1.993-3(d)(2)(iii). 12/08/2003
2003-03 Michael and Nancy B. McNamara v. Commissioner The Action on Decision reflects the Service's nonacquiescence as to whether farm rental income is includible in self-employment income if the lessor materially participates in farm production, but the lease agreement itself does not require the lessor to materially participate. 10/21/2003
2003-02 Intermet Corp. & Subs. v. Comm., 117 T.C. 133 (February 4, 2002). This Action on Decision reflects the Service's nonacquiescence in part (prior acquiescence in result, hereby revoked) to the Court's conclusion that deductions for state income tax deficiencies and interest thereon as well as interest on federal income tax deficiencies, all attributable to tax liabilities arising at least three years before the beginning of the taxable year, and taken into account in computing a net operating loss, qualify for a ten-year carryback as specified liability losses under former I.R.C. § 172(f)(1)(B). 05/01/2003
2003-01 Doyle, Dane, Bernbach, Inc. v. Comm., 79 T.C. 101 (1982). This Action on Decision reflects the Service's acquiescence, and that the action on decision approved on June 27, 1988, is withdrawn, that a New York State corporate franchise tax refund attributable to a net operating loss carryback is includible in the income of a taxpayer using the accrual method of accounting when the taxpayer receives payment or notice that the refund claim has been approved, whichever is earlier. See Rev. Rul. 2003-3. Previously, the Service issued an action on decision that non-acquiesced in the decision of Doyle, Dane, Bernbach, Inc. v. Commissioner, 1988-1 C.B. 1. 01/03/2003
2002-06 Curell v. U.S., 2001-2 U.S.T.C. Para. 50,740 (S.D. Ohio 2001). This Action on Decision reflects the Service's nonacquiescence as to whether an LL.M. in Taxation qualify as a “special factor” justifying an award of attorneys’ fees to plaintiff’s counsel in excess of the statutory rate under I.R.C. § 7430. 12/09/2002
2002-05 Beck v. Comm., T.C. Memo 2001-198 (July 30, 2001). This Action on Decision reflects the Service's acquiescence, and that the action on decision dated December 17, 2001, is withdrawn, in the court's conclusion that it had the authority to review respondent’s denial of equitable relief under section 66(c) in a deficiency proceeding. The Tax Court ultimately decided, however, that the Service did not abuse its discretion in denying such relief because the taxpayer failed to establish that she met the necessary requirements for relief under section 66(c). The Service believes that the Tax Court’s treatment of section 66(c) is correct and will no longer contest the Tax Court’s jurisdiction to review a request for relief under section 66(c). 12/09/2002
2002-04 Paul Pekar v. Commissioner, 113 T.C. 158 (1999). The Action on Decision reflects the Service''s acquiescence in result, as modified, only in the court''s conclusion the timely-mailing timely-filing provisions of section 7502 do not apply to foreign postmarks, and that "foreign postmarks do not effectively cause the filing date of a document to be the postmark date." Id., at 168. In order for a return timely mailed to be timely filed under section 7502, the postmark date appearing on the envelope containing the return must not only fall within the prescribed period for filing the return, but the envelope must be deposited in the mail of the United States. I.R.C. § 7502(a)(2)(A) and (B). Section 7502 does not apply to any document that is 03/11/2002
2002-03 Ridge and Marjory Harlan v. Comm., 116 T.C. 31 (2001) Reflects the Service''s acquiescence in the Court''s conclusion that held that in determining the applicability of the 6-year period of limitations provided by section 6501(e)(1)(A), second-tier partnership information returns are taken into account in computing the amount of gross income stated in the return. In determining the amount of gross income stated in the taxpayer''s return, the Service considered that taxpayer''s returns and the first-tier partnerships'' information returns. The taxpayers argued that the Service should have also considered the second-tier partnership information returns. The Tax Co 03/05/2002
2002-02 Sutherland Lumber-Southwest, Inc. v. Comm. The Action on Decision reflects the Service''s acquiescence in the Tax Court''s conclusion that the disallowance provisions of section 274(a) were inapplicable because "section 274(e) was intended to except certain categories of deduction from the effect of section 274." 114 T.C. 197, 203 (2000) [emphasis added]. Thus, the court concluded that "section 274(e)(2) acts to except the deductions in controversy from the effect of section 274, and, accordingly, [Sutherland''s] deduction [was] not limited to the value reportable by its employees." 114 T.C. at 206. On appeal, the United States Court of Appeals for the Eighth Circuit affirmed. The Service will no long 02/08/2002
2002-01 Intermet Corporation & Subs. v. Comm., 117 T.C. No. 13. The Action on Decision reflects the Service''s acquiescence in result only to the Court''s conclusion that deductions for state income tax deficiencies and interest thereon as well as interest on federal income tax deficiencies, all attributable to tax liabilities arising at least three years before the beginning of the taxable year, and taken into account in computing a net operating loss, qualify for a ten-year carryback as specified liability losses under former I.R.C. § 172(f)(1)(B). In addition, the Service recently lost Host Marriott Corp. v. United States, 113 F.Supp. 2d 790 (D. Md. 2000), aff''d in unpublished opinion, 02/11/2002
2001-08 N.Dakota State Univ v. USA, 84 F. Supp. 1043 (D.N.D. 1999), The Eighth Circuit held that a payment made to a tenured faculty member under the taxpayer's early retirement program was made in exchange for the relinquishment of the tenured faculty member’s contractual and constitutionally-protected tenure rights rather than as remuneration for services to taxpayer. The court cited Rev. Rul. 58-301, 1958-1 C.B. 23, as support for its decision and rejected the government's argument that 01/01/2002
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